Form 4: RenaissanceRe Holdings EVP Ross Curtis Forfeits Performance-Based Restricted Shares

Ross Curtis, EVP and Chief Portfolio Officer of RenaissanceRe Holdings, forfeited 467 common stock shares on March 18, 2024, due to performance-based vesting conditions not being fully met.

Summary

• On March 18, 2024, Ross Curtis, the EVP and Chief Portfolio Officer of RenaissanceRe Holdings, forfeited 467 shares of common stock.
• The forfeiture was related to performance-based restricted shares granted on March 1, 2021, under the company's Long Term Incentive Plan.
• The vesting of these shares was contingent on serviceand performance-based conditions over a three-year performance period ending December 31, 2023.
• The number of shares that vested was determined by RenaissanceRe's average growth in book value per common share plus accumulated dividends and average underwriting expense ratio compared to peers.
• The Corporate Governance and Human Capital Management Committee determined the final number of shares that vested based on peer results.
• Shares that did not meet the performance criteria were forfeited.

Sentiment

Score: 5

Explanation: The document itself is neutral, reporting a transaction. However, the forfeiture of shares suggests underperformance relative to targets, which is mildly negative.

Negatives

• Ross Curtis forfeited 467 shares, indicating that the company's performance did not fully meet the initial targets set out in the 2016 Long Term Incentive Plan.

Industry Context

Performance-based compensation is a common practice in the financial services industry, particularly in reinsurance, to align executive incentives with shareholder value creation. The forfeiture suggests that RenaissanceRe's performance, relative to its peers, in terms of book value growth and underwriting expense ratio, did not reach the maximum target set by the company's compensation plan.

Comparison to Industry Standards

• Many reinsurance companies, such as Everest Re and Arch Capital Group, utilize similar performance-based compensation plans tied to metrics like book value growth, return on equity, and combined ratio.
• The specific targets and peer groups used for comparison vary by company, but the underlying principle is to incentivize executives to outperform their competitors.
• Forfeiture of shares indicates that RenaissanceRe's performance, as measured by the specified metrics, did not meet the highest tier of achievement compared to its peer group.

Stakeholder Impact

• Shareholders may view the forfeiture as an indication that the company's performance did not fully meet expectations.
• Employees may see this as a reflection of the challenges in achieving performance targets.
• The forfeiture has no direct impact on customers, suppliers, or creditors.

Key Dates