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# RenaissanceRe Sees Property Cat Rates Falling Again At January 1, But By Less Than This Year
- URL: https://www.bullished.co/renaissancere-sees-property-cat-rates-falling-again-at-january-1-but-by-less-than-this-59ab147b/
- Published: 2026-10-28T22:06:39.000Z
- Updated: 2026-10-28T22:06:39.000Z
- Description: Underwriting chief David Marra says the company's cat rates are down mid-teens this year, with terms expected to hold at the renewals.
- Author: Matteo Parrino
- Tags: Earnings, RNR, Industry: Financials

[RenaissanceRe](https://www.bullished.co/tag/rnr/), the reinsurer that sells property, casualty and specialty cover, expects property catastrophe rates to fall again at the January 1 renewals, though by less than in 2026, Group Chief Underwriting Officer David Marra said on the company's [third-quarter earnings call](https://www.sec.gov/Archives/edgar/data/913144/000091314426000096/rnrearningsrelease2026q3.htm?ref=bullished.co) on Wednesday.

## Mid-teens this year, less next

Answering a Wells Fargo analyst, Marra, who is also an executive vice president, said the company's rates on its catastrophe book are down mid-teens year to date. "We expect it to be less than that," he said of the coming decline, with terms and conditions expected to stay stable.

He said pressure will come from two places. Catastrophe bonds squeeze the top end of programs, and that pressure "could be more than what we saw this year." The middle layers, which he called the company's "sweet spot" in its net retained portfolio, are mostly contested by traditional reinsurers, whom he expects to stay disciplined on retentions and structures.

Marra expects supply to outrun demand. Demand will still grow, he said, but more slowly: limit purchased was about $20 billion a few years ago, $15 billion two years ago and $10 billion last year, against single digits expected now, based on what customers have told the company.

## How low can rates go

The analyst asked how much room rates have to fall before property returns stop exceeding the cost of capital. Marra said the cat rate is one part of the equation, alongside risk selection, ceded reinsurance and fee income from capital partners.

President and CEO Kevin O'Donnell said he has been at the company for 30 years and has never seen a market where catastrophe business was unattractive to a company with its flexibility. Looking at 2027 and beyond, he said, he does not see a scenario in which it cannot write a large, profitable catastrophe portfolio.

Marra said he expects the property business to remain rate adequate, with returns above its cost of capital.

## Quarter behind the outlook

RenaissanceRe reported third-quarter operating income of $513 million and an annualized operating return on average common equity of 19%, O'Donnell said. Underwriting income was $426 million, and the company repurchased $310 million of shares in the quarter.

Tangible book value per share plus accumulated dividends fell 2% in the quarter as higher interest rates produced mark-to-market losses. Chief Financial Officer Bob Qutub, who retires at year end, said the retained losses were $763 million. Matt Neuber, the corporate treasurer, succeeds him.

The January 1 renewals will show whether rates fall by less than this year's mid-teens decline, as Marra expects.

### Sources

- [RenaissanceRe (RNR) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates](https://finance.yahoo.com/markets/stocks/articles/renaissancere-rnr-q3-earnings-key-230003160.html?ref=bullished.co) — Yahoo Finance
- [Document](https://www.sec.gov/Archives/edgar/data/913144/000091314426000096/rnrearningsrelease2026q3.htm?ref=bullished.co) — sec.gov
- [RenaissanceRe anticipates Q4 retained net investment income around $325M amid portfolio duration extension to 4.2 years (NYSE:RNR)](https://seekingalpha.com/news/4659426-renaissancere-anticipates-q4-retained-net-investment-income-around-325m-amid-portfolio?ref=bullished.co) — seekingalpha.com
- [RenaissanceRe (RNR) Surpasses Q3 Earnings Estimates](https://finance.yahoo.com/markets/stocks/articles/renaissancere-rnr-surpasses-q3-earnings-212010062.html?ref=bullished.co) — Yahoo Finance
- [RenaissanceRe Reports $161.4 Million of Net Loss Attributable to Common Shareholders and $512.6 Million of Operating Income Available to Common Shareholders in Q3 2026\. – Company Announcement - FT.com](https://markets.ft.com/data/announce/detail?dockey=600-202610271630BIZWIRE%5FUSPRX%5F%5F%5F%5F20261027%5FBW007073-1&ref=bullished.co) — Financial Times

### More on RenaissanceRe Holdings

- [RenaissanceRe CEO: Casualty Can Cover Its Cost Of Capital Above 100%, But 'Not A Decision' Made](https://www.bullished.co/renaissancere-ceo-casualty-can-cover-its-cost-of-capital-above-100-but-not-a-decision-made-bd1fa69f/)
- [RenaissanceRe's Casualty Unit Posts A 110.6% Combined Ratio As Three Large Losses Hit](https://www.bullished.co/renaissanceres-casualty-unit-posts-a-110-6-combined-ratio-as-three-large-losses-hit-9c683e05/)
- [RenaissanceRe Posts $161.4 Million Quarterly Loss As $879.8 Million Of Investment Markdowns Swamp Underwriting Profit](https://www.bullished.co/renaissancere-posts-161-4-million-quarterly-loss-as-879-8-million-of-investment-markdowns-7ca0a102/)

[All RenaissanceRe Holdings (RNR) coverage →](https://www.bullished.co/tag/rnr/)