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Renaissancere Holdings Ltd (RNR)
NYSE:RNR
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Renaissancere Holdings
(NYSE:RNR)73Outperform
Positive Factors
Financial Performance
RenaissanceRe reported operating EPS of $8.06 per share, above the consensus estimate of $7.03.
Share Repurchase
The company repurchased $462 million in shares, which was well above the initial estimate.
Negative Factors
Casualty & Specialty Performance
A higher Casualty & Specialty combined ratio has contributed to recent stock underperformance.
Interest Rates Impact
Higher interest rates negatively impacted RenRe’s fixed income portfolio.
Wildfire Losses
The company anticipates the California wildfires to result in a net negative impact of approximately $750 million in its upcoming results.
Renaissancere Holdings (RNR) vs. S&P 500 (SPY)
Market Cap
$11.70B
Dividend Yield0.66%
Average Volume (3M)546.70K
Price to Earnings (P/E)6.7
Beta (1Y)0.29
Revenue Growth28.22%
EPS Growth-31.48%
CountryUS
Employees945
SectorFinancial
Sector Strength93
IndustryInsurance
Share Statistics
EPS (TTM)35.08
Shares Outstanding49,251,140
10 Day Avg. Volume454,220
30 Day Avg. Volume546,703
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)N/A
Price to Sales (P/S)1.00
Price to Cash Flow (P/CF)3.80
P/FCF Ratio3.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$266.09Price Target Upside8.75% Upside
Rating ConsensusHold
Number of Analyst Covering13
Renaissancere Holdings Business Overview & Revenue Model
Company DescriptionRenaissancere Holdings Ltd. is a global provider of reinsurance and insurance, operating primarily in the property, casualty, and specialty lines sectors. Established in 1993 and headquartered in Bermuda, the company offers a wide range of reinsurance products, including property catastrophe, specialty, and casualty reinsurance. Renaissancere is known for its expertise in managing risk and providing capital solutions to clients worldwide, leveraging advanced analytics and modeling to optimize its underwriting processes.
How the Company Makes MoneyRenaissancere Holdings makes money primarily through the underwriting of reinsurance contracts. Its key revenue streams include premiums collected from clients for providing reinsurance coverage across property, casualty, and specialty lines. The company's earnings are influenced by its underwriting profitability, which is determined by the premiums charged versus the claims paid out. Additionally, Renaissancere generates income through investment activities, managing a diversified portfolio that includes fixed income and equity securities. Strategic partnerships and collaborations with other insurers and reinsurers also contribute to its revenue, allowing the company to expand its market reach and enhance its product offerings.
Renaissancere Holdings Financial Statement Overview
Summary
RenaissanceRe Holdings showcases a solid financial recovery with impressive net income growth and strong cash flow management. The balance sheet reflects a strong equity base with minimal leverage, supporting financial stability. However, past fluctuations in profitability margins and equity components highlight areas for potential improvement. The company's trajectory is positive, with significant improvements in key financial metrics.Income Statement
RenaissanceRe Holdings shows a strong recovery in net income for 2024 after a challenging 2022. The gross profit margin remained high, showcasing efficiency in cost management. However, the volatility in EBIT and EBITDA margins over the years highlights some operational challenges. The company has also demonstrated significant revenue growth from 2023 to 2024, which is a positive sign.80
Positive
Balance Sheet
The company has a robust equity position with a high equity ratio, indicating financial stability. With zero debt reported in 2024, the debt-to-equity ratio is favorable, enhancing the company's financial health. However, the fluctuations in stockholders' equity over the years suggest some instability in retained earnings or other equity components.75
Positive
Cash Flow
RenaissanceRe Holdings has exhibited strong operating cash flow growth, particularly in 2024, which supports its liquidity and operational flexibility. The free cash flow to net income ratio is highly favorable, indicating efficient cash management. The company's ability to maintain positive free cash flow amidst investment and financing activities further strengthens its cash position.85
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 4.67B | 29.32M | 9.09B | 5.05B | 5.27B | 5.16B | Gross Profit |
| 4.67B | 29.32M | 9.09B | 5.05B | 5.27B | 5.16B | EBIT |
| -782.15M | 0.00 | 3.14B | -1.05B | -61.70M | 765.05M | EBITDA |
| -1.19B | 0.00 | 3.28B | -1.25B | -126.27M | 1.09B | Net Income Common Stockholders |
| -952.37M | 1.87B | 2.53B | -1.16B | -103.44M | 762.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.68B | 1.68B | 6.48B | 5.86B | 7.16B | 6.73B | Total Assets |
| 50.71B | 50.71B | 49.01B | 36.55B | 33.96B | 30.82B | Total Debt |
| 1.89B | 1.89B | 1.96B | 1.17B | 1.17B | 1.14B | Net Debt |
| 210.09M | 210.09M | 81.14M | -23.90M | -690.67M | -600.55M | Total Liabilities |
| 33.16B | 33.16B | 33.45B | 26.69B | 23.78B | 19.87B | Stockholders Equity |
| 10.57B | 10.57B | 9.45B | 5.33B | 6.62B | 7.56B |
| Cash Flow | Free Cash Flow | ||||
| 1.17B | 4.16B | 1.91B | 1.12B | 2.05B | 4.30B | Operating Cash Flow |
| 1.17B | 4.16B | 1.91B | 1.60B | 1.23B | 1.99B | Investing Cash Flow |
| -1.89B | -3.06B | -3.82B | -3.02B | -816.30M | -2.30B | Financing Cash Flow |
| 303.58M | -1.29B | 2.59B | 725.34M | -302.46M | 665.21M |
Renaissancere Holdings Technical Analysis
Positive
244.68
Price Trends
243.66
Positive
257.57
Negative
247.42
Negative
Market Momentum
-1.99
Negative
57.97
Neutral
93.53
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNR, the sentiment is Positive. The current price of 244.68 is above the 20-day moving average (MA) of 233.96, above the 50-day MA of 243.66, and below the 200-day MA of 247.42, indicating a neutral trend. The MACD of -1.99 indicates Negative momentum. The RSI at 57.97 is Neutral, neither overbought nor oversold. The STOCH value of 93.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RNR.
Renaissancere Holdings Risk Analysis
Renaissancere Holdings disclosed 35 risk factors in its most recent earnings report. Renaissancere Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Renaissancere Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $7.69B | 7.62 | 17.77% | 1.80% | 7.43% | 206.71% | |
81 Outperform | $34.87B | 8.31 | 20.71% | ― | 26.24% | -3.87% | |
79 Outperform | $33.76B | 11.43 | 18.92% | 1.63% | 8.19% | 29.77% | |
75 Outperform | $13.38B | 18.91 | 6.63% | 1.77% | 19.29% | -19.91% | |
74 Outperform | $166.01B | 19.67 | 33.14% | 1.72% | 21.36% | 118.77% | |
73 Outperform | $11.70B | 6.75 | 17.69% | 0.66% | 28.22% | -31.48% | |
64 Neutral | $14.34B | 10.61 | 9.28% | 4.07% | 18.04% | -9.54% |
* Financial Sector Average
Performance Comparison
RNR
Renaissancere Holdings
244.68
22.59
10.17%
ACGL
Arch Capital Group
91.87
8.77
10.55%
AXS
Axis Capital
95.20
35.50
59.46%
HIG
Hartford Financial
116.98
22.78
24.18%
PGR
Progressive
283.19
97.21
52.27%
RGA
Reinsurance Group
193.05
17.66
10.07%
Renaissancere Holdings Earnings Call Summary
Earnings Call Date: Jan 28, 2025 | % Change Since: -5.55% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with growth in key metrics such as tangible book value, operating income, and investment income. The successful integration of Validus and robust capital management were notable achievements. However, challenges were noted in the Casualty and Specialty segment, as well as significant impacts from the California wildfires. Despite these challenges, the overall sentiment leans towards optimism given the strong financial results and strategic achievements.Highlights
Strong Financial Performance
Tangible book value plus accumulated dividends grew by 26%, operating income exceeded $2.2 billion, and operating income per share was nearly $43 per share.
Underwriting Success
Delivered $1.6 billion in underwriting income with an 81.5% adjusted combined ratio despite $140 billion in industry catastrophe losses.
Investment Income Growth
Retained investment income exceeded $1.1 billion, demonstrating strong investment performance.
Successful Integration of Validus
Retained substantially all Validus underwriting portfolio, fully integrated the team, and generated significant capital efficiencies.
Capital Management
Repurchased $462 million of shares in the fourth quarter, adding to $800 million total repurchased since Q2 2024.
Fee Income Growth
Capital partners fee income was $327 million, growing by 38%.
Lowlights
California Wildfire Impact
Estimated pre-tax net negative impact of $750 million due to California wildfires, with uncertainty around the $50 billion market loss estimate.
Casualty and Specialty Challenges
Adjusted combined ratio for Casualty and Specialty increased to 98% from 94% last year, driven by elevated loss trends in general liability lines.
Casualty Segment Volatility
Fourth quarter adjusted combined ratio in Casualty and Specialty was 101% due to elevated loss ratios and specific loss activity.
Property Segment Large Losses
Fourth quarter adjusted combined ratio for Property segment was 69%, impacted by 49 percentage points from large events including Hurricane Milton.
Company Guidance
During the RenaissanceRe fourth quarter and year-end 2024 earnings call, the company reported strong financial performance across several key metrics. Tangible book value plus accumulated dividends grew by 26%, and operating income exceeded $2.2 billion, equating to approximately $43 per share. The underwriting segment generated $1.6 billion in income with an adjusted combined ratio of 81.5%, despite industry catastrophe losses exceeding $140 billion. Investment income surpassed $1.1 billion, while capital partners fee income was $327 million. The company also actively managed its capital by repurchasing $460 million of shares in Q4, bringing total repurchases to over $800 million since Q2 2024. Additionally, the company addressed the California wildfires, estimating a pre-tax net negative impact of $750 million, based on a preliminary market loss estimate of $50 billion.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.