Renaissancere Holdings (RNR) AI Stock Analysis

• Market Cap: $11.64B
• Dividend Yield: 0.65%
• Average Volume (3M): 341.40K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 0.17
• Revenue Growth: 23.19%
• EPS Growth: -22.42%
• Country: US
• Employees: 945
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Reinsurance
• EPS (TTM): 12.29
• Shares Outstanding: 47,066,216
• 10 Day Avg. Volume: 392,794
• 30 Day Avg. Volume: 341,401
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.85
• Enterprise Value/Revenue: 1.68
• Enterprise Value/Gross Profit: 25.20
• Enterprise Value/Ebitda: 6.61
• 1Y Price Target: $268.17
• Price Target Upside: 10.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 84 Outperform
• Price Target: $286.00 ▲(17.45% Upside)

Renaissancere Holdings' strong financial performance and positive earnings call sentiment are the primary drivers of its high score. The company's undervalued P/E ratio and stable technical indicators further support its investment appeal. Despite some operational challenges, the overall outlook remains positive.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates effective market penetration and product demand, supporting long-term business expansion and stability.

Balance Sheet Health

A debt-free balance sheet enhances financial flexibility, allowing the company to invest in growth opportunities and withstand economic downturns.

Operating Return on Equity

A high operating return on equity reflects efficient use of capital and strong profitability, which can drive shareholder value over the long term.

Negative Factors

Net Income Decline

A decline in net income can pressure profit margins and limit reinvestment capacity, potentially affecting future growth and competitiveness.

Increased Operating Expenses

Rising operating expenses can erode profit margins and necessitate cost management strategies to maintain financial performance.

Bermuda Corporate Income Tax Impact

The new tax expense reduces net income and cash flow, potentially impacting the company's ability to invest in growth and return capital to shareholders.

Renaissancere Holdings Business Overview & Revenue Model

Company Description

RenaissanceRe Holdings Ltd. provides reinsurance and insurance products in the United States and internationally. The company operates through Property, and Casualty and Specialty segments. The Property segment writes property catastrophe excess of loss reinsurance and excess of loss retrocessional reinsurance to insure insurance and reinsurance companies against natural and man-made catastrophes, including hurricanes, earthquakes, typhoons, and tsunamis, as well as claims arising from other natural and man-made catastrophes comprising winter storms, freezes, floods, fires, windstorms, tornadoes, explosions, and acts of terrorism; and other property class of products, such as proportional reinsurance, property per risk, property reinsurance, binding facilities, and regional U.S. multi-line reinsurance. The Casualty and Specialty segment writes various classes of products, such as directors and officers, medical malpractice, and professional indemnity; automobile and employer's liability, casualty clash, umbrella or excess casualty, workers' compensation, and general liability; financial and mortgage guaranty, political risk, surety, and trade credit; and accident and health, agriculture, aviation, cyber, energy, marine, satellite, and terrorism. The company distributes its products and services primarily through intermediaries. RenaissanceRe Holdings Ltd. was founded in 1993 and is headquartered in Pembroke, Bermuda.

How the Company Makes Money

RenaissanceRe generates revenue primarily through its reinsurance and insurance underwriting activities. The company earns premiums from clients for the coverage it provides, which are then invested to yield investment income. Key revenue streams include property catastrophe reinsurance, where RenaissanceRe provides coverage against large-scale natural disasters, and specialty insurance products that cater to niche markets. The company's investment portfolio, consisting of fixed income securities, equities, and other financial instruments, also contributes significantly to its earnings. Additionally, RenaissanceRe engages in strategic partnerships with other insurance entities and capital markets, enhancing its capacity to underwrite risks and tap into new market opportunities, which further bolsters its revenue generation capabilities.

Renaissancere Holdings Financial Statement Overview

Summary

Renaissancere Holdings demonstrates robust financial health with strong revenue growth, high profitability, and effective cash management. The balance sheet is solid with no current debt and a high equity ratio, ensuring financial flexibility and stability.

Income Statement

Renaissancere Holdings shows strong revenue growth with a TTM revenue of $12.33 billion, up from $11.65 billion annually. Gross profit margins are exceptionally high, indicating strong cost management. However, net income has declined slightly, impacting net profit margins. EBIT margins remain robust, supporting operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with no current debt, improving financial flexibility. A high equity ratio and consistent return on equity underscore stability and shareholder value creation. Strong cash positions relative to liabilities enhance resilience against market fluctuations.

Cash Flow

Operating cash flow remains strong, indicating healthy core business operations. Although free cash flow decreased from the previous period, it remains positive, supporting sustainable growth. The company effectively converts net income into cash, reflecting solid cash management practices.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.65B	9.09B	5.05B	5.27B	5.16B
Gross Profit	3.67B	9.09B	5.12B	174.46M	5.16B
EBITDA	3.01B	3.28B	-1.20B	-126.27M	1.07B
Net Income	1.87B	2.53B	-1.06B	-40.88M	762.40M
Balance Sheet
Total Assets	50.71B	49.01B	36.55B	33.96B	30.82B
Cash, Cash Equivalents and Short-Term Investments	6.21B	6.48B	5.86B	7.16B	6.73B
Total Debt	1.89B	1.96B	1.17B	1.17B	1.14B
Total Liabilities	33.16B	33.45B	26.69B	23.78B	19.87B
Stockholders Equity	10.57B	9.45B	5.33B	6.62B	7.56B
Cash Flow
Free Cash Flow	4.16B	1.91B	1.12B	2.05B	4.30B
Operating Cash Flow	4.16B	1.91B	1.60B	1.23B	1.99B
Investing Cash Flow	-3.06B	-3.82B	-3.02B	-816.30M	-2.30B
Financing Cash Flow	-1.29B	2.59B	725.34M	-302.46M	665.21M

Renaissancere Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 243.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 243.5 is above the 20-day moving average (MA) of 243.40, above the 50-day MA of 241.23, and below the 200-day MA of 244.20, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 51.71 is Neutral, neither overbought nor oversold. The STOCH value of 68.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RNR.

Renaissancere Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RNR	84 Outperform	$11.64B	6.31	18.75%	0.65%	23.19%	-22.42%
HG	82 Outperform	$2.40B	6.40	15.86%	―	28.86%	-11.22%
EG	72 Outperform	$14.65B	18.20	5.52%	2.35%	10.40%	-71.67%
Sector *	68 Neutral	$18.00B	11.42	9.93%	3.81%	9.73%	1.22%
RGA	66 Neutral	$12.70B	16.72	7.07%	1.87%	1.53%	-10.27%
SPNT	64 Neutral	$2.22B	21.20	4.82%	―	-4.56%	-55.48%
GLRE	61 Neutral	$426.45M	11.38	5.82%	―	2.18%	-41.11%