The following is a discussion and analysis of our results of operations for the three and nine months ended September 30, 2008 and 2007. The following also includes a discussion of our financial condition at September 30, 2008. This discussion and analysis should be read in conjunction with the attached unaudited consolidated financial statements and notes thereto and the audited consolidated financial statements and notes thereto contained in our Annual Report on Form 10-K, as amended, for the fiscal year ended December 31, 2007. This filing contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the results described or implied by these forward-looking statements. We also direct readers to the Note on Forward-Looking Statements included in this filing.

OVERVIEW

RenaissanceRe, established in Bermuda in 1993 to write principally property catastrophe reinsurance, is today a leading global provider of reinsurance and insurance coverages and related services. Through our operating subsidiaries, we seek to obtain a portfolio of reinsurance, insurance and financial risks in each of our businesses that are significantly better than the market average and produce an attractive return on equity. We accomplish this by taking advantage of market dislocations, and leveraging our core capabilities of risk assessment and information management. Overall, our strategy focuses on superior risk selection, capital management, marketing and joint ventures. We provide value to our clients and joint venture partners in the form of financial security, innovative products, and responsive service. We are known as a leader in paying valid reinsurance claims promptly. We principally measure our financial success through long-term growth in tangible book value per common share plus accumulated dividends, which we believe is the most appropriate measure of our Company's performance, and believe we have delivered superior performance in respect of this measure in the past.

Since a substantial portion of the reinsurance and insurance we write provides protection from damages relating to natural and man-made catastrophes, our results depend to a large extent on the frequency and severity of such catastrophic events, and the coverages we offer to clients affected by these events. We are exposed to significant losses from these catastrophic events and other exposures that we cover. Accordingly, we expect a significant degree of volatility in our financial results and our financial results may vary significantly from quarter-to-quarter or from year-to-year, based on the level of insured catastrophic losses occurring around the world.

Our revenues are principally derived from three sources: 1) net premiums earned from the reinsurance and insurance policies we sell; 2) net investment income and realized gains from the investment of our capital funds and the investment of the cash we receive on the policies which we sell; and 3) other income received from our joint ventures, advisory services, weather-trading activities and various other items.

Our expenses primarily consist of: 1) net claims and claim expenses incurred on the policies of reinsurance and insurance we sell; 2) acquisition costs which typically represent a percentage of the premiums we write; 3) operating expenses which primarily consist of personnel expenses, rent and other operating expenses; 4) corporate expenses which include certain executive, legal and consulting expenses, costs for research and development, and other miscellaneous costs associated with operating as a publicly traded company; 5) minority interest, which represents the interest of third parties with respect to the net income of DaVinciRe; and 6) interest and dividend costs related to our debt, preference shares and subordinated obligation to our capital trust. We are also subject to taxes in certain jurisdictions in which we operate; however, since the majority of our income is currently earned in Bermuda, a non-taxable jurisdiction, the tax impact to our operations has historically been minimal. We currently expect our growth outside of Bermuda to result in a higher effective tax rate in future periods.

The operating results, also known as the underwriting results, of an insurance or reinsurance company are discussed frequently by reference to its net claims and claim expense ratio, underwriting expense ratio, and combined ratio. The net claims and claim expense ratio is calculated by dividing net claims and claim expenses incurred by net premiums earned. The underwriting expense ratio is calculated by dividing

underwriting expenses (acquisition expenses and operational expenses) by net premiums earned. The combined ratio is the sum of the net claims and claim expense ratio and the underwriting expense ratio. A combined ratio below 100% generally indicates profitable underwriting prior to the consideration of investment income. A combined ratio over 100% generally indicates unprofitable underwriting prior to the consideration of investment income. We also discuss our net claims and claim expense ratio on an accident year basis. This ratio is calculated by taking net claims and claim expenses, excluding development on net claims and claim expenses from events that took place in prior fiscal years, divided by net premiums earned.

We conduct our business through two reportable segments, Reinsurance and Individual Risk. Those segments are more fully described as follows:

Reinsurance

Our Reinsurance segment has three main units:

1) Property catastrophe reinsurance, written for our own account and for DaVinci, is our traditional core business. We believe we are one of the world's leading providers of this coverage, based on managed catastrophe gross premiums written. This coverage protects against large natural catastrophes, such as earthquakes, hurricanes and tsunamis, as well as claims arising from other natural and man-made catastrophes such as winter storms, freezes, floods, fires, wind storms, tornadoes, explosions and acts of terrorism. We offer this coverage to insurance companies and other reinsurers primarily on an excess of loss basis. This means that we begin paying when our customers' claims from a catastrophe exceed a certain retained amount.

2) Specialty reinsurance, written for our own account and for DaVinci, covering certain targeted classes of business where we believe we have a sound basis for underwriting and pricing the risk that we assume. Our portfolio includes various classes of business, such as catastrophe exposed workers' compensation, surety, terrorism, medical malpractice, casualty clash, catastrophe exposed personal lines property, certain other casualty lines and other specialty lines of reinsurance that we collectively refer to as specialty reinsurance. We believe that we are seen as a market leader in certain of these classes of business, such as casualty clash, surety, catastrophe-exposed workers' compensation and terrorism.

3) Through our ventures unit, we pursue joint ventures and other strategic relationships. Our four principal business activities in this area are: 1) property catastrophe joint ventures which we manage, such as Top Layer Re and DaVinci; 2) strategic investments in other market participants, such as our investments in ChannelRe, Platinum and the Tower Hill Companies, where, rather than assuming exclusive management responsibilities ourselves, we partner with other market participants; 3) weather-related trading activities; and 4) fee-based consulting services, research and development and loss and mitigation activities. Only business activities that appear in our consolidated underwriting results, such as DaVinci and certain reinsurance transactions, are included in our Reinsurance segment results; our share of the results of Top Layer Re, ChannelRe, Tower Hill, Platinum and our weather-related activities are included in the Other category of our segment results.

Individual Risk

We define our Individual Risk segment to include underwriting that involves understanding the characteristics of the original underlying insurance policy. Our principal contracts include insurance contracts and quota share reinsurance with respect to risks including: 1) commercial multi-line, which includes commercial property and liability coverage, such as general liability, automobile liability and physical damage, building and contents, professional liability and various specialty products; 2) multi-peril crop, which includes multi-peril crop insurance, crop hail, yield-based and revenue insurance plans and other named peril agriculture risk management products; 3) commercial property, which principally includes catastrophe-exposed commercial property products; and 4) personal lines property, which principally includes homeowners personal lines property coverage and catastrophe exposed personal lines property coverage.

Our Individual Risk business is primarily produced through three distribution channels: 1) program managers - where we write primary insurance through specialized program managers, who produce business pursuant to agreed-upon underwriting guidelines and provide related back-office functions; 2) quota share reinsurance - where we write quota share reinsurance with primary insurers who, similar to our program managers, provide most of the back-office and support functions; and 3) brokers and agents - where we write primary insurance produced through licensed intermediaries on a risk-by-risk basis.

Our Individual Risk business is written by the Glencoe Group through its principal operating subsidiaries Glencoe and Lantana, which write on an excess and surplus lines basis, and through Stonington and Stonington Lloyds, which write on an admitted basis. Since the inception of our Individual Risk business, we have substantially relied on third parties for services including the generation of premium, the issuance of policies and the processing of claims. We actively oversee our third-party partners through an operations review team at Glencoe Specialty Services, which conducts initial due diligence as well as ongoing monitoring. Currently, we are investing in initiatives to strengthen our operating platform, enhance our internal capabilities, and expand the resources we commit to our Individual Risk operations. In furtherance of these initiatives, we recently completed the acquisition of substantially all the net assets of Agro National and CMS.

New Business

In addition to the potential growth of our existing reinsurance and insurance businesses, from time to time we consider opportunistic diversification into new ventures, either through organic growth, the formation of new joint ventures, or the acquisition of or the investment in other companies or books of business of other companies. This potential diversification includes opportunities to write targeted, additional classes of risk-exposed business, both directly for our own account and through possible new joint venture opportunities. We also regularly evaluate opportunities to grow our business by utilizing our skills, capabilities, proprietary technology and relationships to expand into further risk-related coverages, services and products. Generally, we focus on underwriting or trading risks where reasonably sufficient data may be available, and where our analytical abilities may provide us a competitive advantage, in order for us to seek to model estimated probabilities of losses and returns in accordance with our approach in respect of our current portfolio of risks. We also regularly review potential new investments, in both operating entities and financial instruments. We believe the current period of market dislocation may have increased the prospects that we can deploy capital in such initiatives at attractive expected rates of return.

In evaluating potential new ventures or investments, we generally seek an attractive return on equity, the ability to develop or capitalize on a competitive advantage, and opportunities which we believe will not detract from our core Reinsurance and Individual Risk operations. Accordingly, we regularly review strategic opportunities and periodically engage in discussions regarding possible transactions, although there can be no assurance that we will complete any such transactions or that any such transaction would contribute materially to our results of operations or financial condition. We believe that our ability to potentially attract investment and operational opportunities is supported by our strong reputation and financial resources, and by the capabilities and track record of our ventures unit.

Underwriting and Risk Management

We seek to develop and effectively utilize sophisticated computer models and other analytical tools to assess and manage the risks that we underwrite and attempt to optimize our portfolio of reinsurance and insurance contracts and other financial risks. These efforts are managed across our organization by a team of professionals led by our President and Chief Executive Officer.

With respect to our Reinsurance operations, since 1993 we have developed and continuously seek to improve our proprietary, computer-based pricing and exposure management system, Renaissance Exposure Management System ("REMS©"). We believe that REMS© is a more robust underwriting and risk management system than is currently commercially available elsewhere in the reinsurance industry and offers us a significant competitive advantage. REMS© was originally developed to analyze catastrophe risks, though we continuously seek ways to enhance the program in order to analyze other classes of risk.

In addition to using REMS ©, within our Individual Risk operations we have developed a proprietary information management and analytical database, our Program Analysis Central Repository ("PACeR"), within which data related to substantially all our U.S. program business is maintained. With the use and development of PACeR, we are seeking to develop statistical and analytical techniques to evaluate our U.S. program lines of business. We provide our program manager partners with access to PACeR's capabilities, which we believe helps support superior underwriting decisions, thus creating value for them and for us. Our objective is to have PACeR create an advantage for our Individual Risk operations by assisting us in building and maintaining a well-priced portfolio of specialty insurance risks.

SUMMARY OF CRITICAL ACCOUNTING ESTIMATES

The Company's critical accounting estimates are discussed in Management's Discussion and Analysis of Financial Condition and Results of Operations found in our Annual Report on Form 10-K, as amended, for the year ended December 31, 2007.

SUMMARY OF RESULTS OF OPERATIONS

For the three months ended September 30, 2008 compared to the three months ended September 30, 2007

Summary Overview



Three months ended September 30,                         2008                      2007                 Change
(in thousands of U.S. dollars, except per
share amounts and ratios)
Gross premiums written                            $           239,806         $       208,821         $   30,985
Net premiums written                                          194,408                 149,163             45,245
Net premiums earned                                           379,342                 367,057             12,285
Net claims and claim expenses incurred                        535,347                 131,700            403,647
Underwriting (loss) income                                   (240,532 )               144,512           (385,044 )
Net investment income                                          15,767                  95,594            (79,827 )
Net realized (losses) gains on investments                    (87,610 )                 1,592            (89,202 )
Net (loss) income (attributable) available
to common shareholders                                       (230,974 )               133,400           (364,374 )
Net (loss) income (attributable) available
to common shareholders per common share -
diluted (1)                                       $             (3.79 )       $          1.85         $    (5.64 )
Net claims and claim expense ratio - current
accident year                                                   150.6 %                  41.4 %            109.2 %
Net claims and claim expense ratio - prior
accident years                                                   (9.5 )%                 (5.5 )%            (4.0 )%
Net claims and claim expense ratio -
calendar year                                                   141.1 %                  35.9 %            105.2 %
Underwriting expense ratio                                       22.3 %                  24.7 %             (2.4 )%
Combined ratio                                                  163.4 %                  60.6 %            102.8 %

At September 30, 2008 and June 30, 2008           September 30, 2008           June 30, 2008            Change           % Change
Book value per common share                       $             38.94         $         43.32         $    (4.38 )          (10.1 )%
Accumulated dividends per common share                           7.69                    7.46               0.23              3.1 %

Book value per common share plus accumulated
dividends                                         $             46.63         $         50.78         $    (4.15 )           (8.2 )%

(1) In accordance with FAS 128, diluted earnings per share calculations use weighted average common shares-basic, when in a net loss position.

Net loss attributable to common shareholders was $231.0 million in the third quarter of 2008, compared to net income available to common shareholders of $133.4 million in the third quarter of 2007. The net loss in the third quarter of 2008 was principally due to:

• $276.0 million of net negative impact from hurricanes Gustav and Ike, which occurred in the third quarter of 2008;

• a $79.8 million decrease in net investment income, primarily due to lower total returns on our investment portfolio and partially due to lower average invested assets in our fixed maturity investments available for sale and short term investments;

• an $89.2 million increase in net realized losses on investments, primarily due to other than temporary impairment charges as a result of widening credit spreads in the third quarter of 2008 as a result of the turmoil in the financial and capital markets; and partially offset by

• an increase in equity in earnings (losses) of other ventures, under equity method of $26.3 million

In the third quarter of 2008, we incurred an underwriting loss of $240.5 million, a decrease of $385.0 million compared to $144.5 million of underwriting income in the third quarter of 2007. The decrease in underwriting income was driven by hurricanes Gustav and Ike which reduced our third quarter 2008 underwriting results by $419.6 million. We had a combined ratio of 163.4%, a net claims and claim expense ratio of 141.1% and an underwriting expense ratio of 22.3% in the third quarter of 2008, compared to a combined ratio, net claims and claim expense ratio and underwriting expense ratio of 60.6%, 35.9% and 24.7%, respectively, in the third quarter of 2007. The impact of hurricanes Gustav and Ike was to increase our combined ratio by 116.8 percentage points in the third quarter of 2008.

Gross premiums written increased $31.0 million to $239.8 million in the third quarter of 2008, compared to $208.8 million in the third quarter of 2007. The increase in gross premiums written was driven by a $27.9 million increase in gross premiums written in our Reinsurance segment combined with a $20.9 million decrease in gross premiums ceded from our Individual Risk segment to our Reinsurance segment, and partially offset by a $17.8 million decrease in gross premiums written in our Individual Risk segment. The increase in gross premiums written in our Reinsurance segment was principally driven by $49.0 million of reinstatement premiums written as a result of the net claims and claim expenses from hurricanes Gustav and Ike. Excluding the impact of reinstatement premiums, gross premiums written would have been down due to softening market conditions which resulted in lower premium rates on business written during the third quarter of 2008.

Net premiums written increased $45.2 million in the third quarter of 2008 to $194.4 million from $149.2 million in the third quarter of 2007. The increase in net premiums written was primarily due to the increase in gross premiums written noted above combined with a $14.3 million decrease in ceded premiums written in the third quarter of 2008 compared to the third quarter of 2007. Net premiums earned increased to $379.3 million in the third quarter of 2008, compared to $367.1 million in the third quarter of 2007.

Net claims and claim expenses increased by $403.6 million to $535.3 million in the third quarter of 2008 compared to $131.7 million in the same quarter of 2007, principally due to a $419.5 million increase in current accident year losses. The increase in current accident year losses was primarily due to $458.8 million in net claims and claim expenses in our catastrophe unit and Individual Risk segment relating to hurricanes Gustav and Ike, and partially offset by a lower level of losses in our specialty unit.

We recorded an overall net negative impact of $276.0 million from hurricanes Gustav and Ike in the third quarter of 2008. Net negative impact includes the sum of estimates of net claims and claim expenses incurred, earned reinstatement premiums assumed and ceded, lost profit commissions and minority interest. Our estimates of losses from hurricanes Gustav and Ike are based on factors including currently available information derived from the Company's preliminary claims information from certain clients and brokers, industry assessments of losses from the events, proprietary models, and the terms and conditions of our contracts. Given the magnitude and recent occurrence of these events, meaningful uncertainty remains regarding total covered losses for the insurance industry and, accordingly, several of the key assumptions underlying our loss estimates. In addition, actual losses from these events may increase if our reinsurers or other obligors fail to meet their obligations. Our actual losses from these events will likely vary, perhaps materially, from these current estimates due to the inherent uncertainties in reserving for such losses, including the preliminary nature of the available information, the potential inaccuracies and inadequacies in the data provided by clients and brokers, the inherent uncertainty of modeling techniques and the application of such techniques, the effects of any demand surge on claims activity and complex coverage and other legal issues.

Following is supplemental financial data regarding the net financial statement impact on our results for the third quarter 2008 due to hurricanes Gustav and Ike:

                                              Three months ended September 30, 2008
 (in thousands of U.S. dollars)             Gustav               Ike             Total
 Net claims and claim expenses incurred   $     (80.3 )     $      (378.5 )     $ (458.8 )
 Net reinstatement premiums earned               12.3                31.6           43.9
 Lost profit commissions                         (1.9 )              (2.8 )         (4.7 )

 Net impact on underwriting result              (69.9 )            (349.7 )       (419.6 )
 Minority interest - DaVinciRe                   25.3               118.3          143.6

 Net negative impact                      $     (44.6 )     $      (231.4 )     $ (276.0 )

 Impact on combined ratio                        16.9 %              94.8 %        116.8 %

We experienced $36.0 million in favorable loss reserve development in the third quarter of 2008 compared to $20.2 million in the same quarter of 2007. The favorable development in the third quarter of 2008 and 2007 was primarily attributable to the Company's Reinsurance segment.

Book value per common share decreased $4.38 to $38.94 at September 30, 2008, compared to $43.32 at June 30, 2008, a decrease of 10.1% for the quarter. Book value per common share plus accumulated dividends decreased $4.15 to $46.63 at September 30, 2008, compared to $50.78 at June 30, 2008, a decrease of 8.2% for the quarter. The decrease in book value per common share during the third quarter of 2008 was driven by our net loss attributable to common shareholders of $231.0 million, a $19.0 million decrease in accumulated other comprehensive income and $14.1 million of common dividends. Book value per common share was also impacted by our repurchase of 1.6 million common shares in the third quarter of 2008 for a total cost of $75.8 million.

Underwriting Results by Segment

Reinsurance Segment

Below is a summary of the underwriting results and ratios for our Reinsurance segment followed by an analysis of our property catastrophe reinsurance unit and specialty reinsurance unit underwriting results and ratios for the three months ended September 30, 2008 and 2007:

Reinsurance segment overview

Three months ended September 30,                        2008            2007            Change
(in thousands of U.S. dollars, except ratios)
Gross premiums written (1)                           $  169,463       $ 141,545       $   27,918

Net premiums written                                 $  129,229       $  91,112       $   38,117

Net premiums earned                                     251,058         242,520            8,538
Net claims and claim expenses incurred                  423,568          67,335          356,233
Acquisition expenses                                     34,469          32,122            2,347
Operational expenses                                     20,602          16,301            4,301

Underwriting (loss) income                           $ (227,581 )     $ 126,762       $ (354,343 )


Net claims and claim expenses incurred - current
accident year                                        $  454,187       $  83,104       $  371,083
Net claims and claim expenses incurred - prior
accident years                                          (30,619 )       (15,769 )        (14,850 )

Net claims and claim expenses incurred - total       $  423,568       $  67,335       $  356,233


Net claims and claim expense ratio - current
accident year                                             180.9 %          34.3 %          146.6 %
Net claims and claim expense ratio - prior
accident years                                            (12.2 )%         (6.5 )%          (5.7 )%

Net claims and claim expense ratio - calendar
year                                                      168.7 %          27.8 %          140.9 %
Underwriting expense ratio                                 21.9 %          20.0 %            1.9 %
. . .