RENAISSANCE RE HOLDINGS Pembroke, Bermuda; Reinsurer Fattens Up On Favorable Trends.(THE NEW AMERICA)

Byline: M. SUSAN BASAS

In the insurance industry, an appetite for the right risk at the right time can send business soaring.

That's what RenaissanceRe Holdings Ltd. discovered in the past year. The Bermuda-based reinsurance firm indemnifies primary insurers against excess losses on catastrophes such as hurricanes, tornadoes and terrorist attacks.

Accelerated price increases since the 9-11 attack unleashed a gusher of business for the firm.

"Business that was previously underpriced and unacceptable to us has risen to a level where we can now see it as attractive," said Renaissance Chief Financial Officer John Lummis. "We are now the leading writer in the business of catastrophe reinsurance."

That's not just an idle boast.

During the first nine months of the year, Renaissance's managed catastrophe premiums leapt 64% from 2001 to $681 million. Renaissance sees the figure reaching as high as $700 million before the year is out.