Renaissancere Holdings (RNR) AI Stock Analysis

• Market Cap: $12.96B
• Dividend Yield: 0.57%
• Average Volume (3M): 353.99K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.17
• Revenue Growth: -3.96%
• EPS Growth: -48.08%
• Country: US
• Employees: 945
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Reinsurance
• EPS (TTM): 15.62
• Shares Outstanding: 46,109,516
• 10 Day Avg. Volume: 353,085
• 30 Day Avg. Volume: 353,993
• PEG Ratio: -0.21
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 1.09
• P/FCF Ratio: 3.06
• Enterprise Value/Market Cap: 1.71
• Enterprise Value/Revenue: 1.83
• Enterprise Value/Gross Profit: 6.65
• Enterprise Value/Ebitda: 7.93
• 1Y Price Target: $290.83
• Price Target Upside: 3.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: $300.00 ▲(6.70% Upside)

Renaissancere Holdings' strong financial performance and strategic growth initiatives are the most significant factors driving its high score. The company's robust earnings and effective capital management, coupled with a solid valuation, underscore its potential for continued success. Technical indicators support a positive outlook, although caution is advised due to potential overbought conditions. The earnings call further reinforces confidence in the company's strategic direction and financial health.

Positive Factors

Strong Cash Generation

The company's ability to generate cash effectively supports its operations and growth, ensuring financial stability and flexibility.

Robust Balance Sheet

A strong balance sheet with low leverage and high ROE indicates prudent financial management and effective use of shareholder funds.

Growth in Tangible Book Value

Consistent growth in tangible book value reflects strong capital management and enhances shareholder value over time.

Negative Factors

Revenue Contraction

A decline in revenue growth can signal challenges in market demand or competitive pressures, impacting long-term growth prospects.

Decreasing Property CAT Rates

Lower property CAT rates could reduce profitability in a key segment, challenging the company's ability to maintain margins.

Increased Competition

Rising competition may pressure pricing and margins, potentially affecting future profitability and market share.

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 operations. In the Reinsurance segment, the company earns income by underwriting various types of insurance risks, with premiums collected from insurers and other entities seeking to transfer risk. The Insurance segment contributes to revenue through the sale of direct insurance policies to clients. Key revenue streams include premiums from both segments, investment income from managing its portfolio of investments, and capital gains from the sale of securities. Additionally, RenaissanceRe benefits from strategic partnerships with other insurance and reinsurance firms, allowing it to expand its market reach and diversify its risk portfolio, further contributing to its overall earnings.

Renaissancere Holdings Financial Statement Overview

Summary

Renaissancere Holdings presents a solid financial profile with strong profitability and cash flow generation, despite recent revenue contraction. The company maintains a conservative balance sheet with low leverage, enhancing its financial stability. While the income statement shows some challenges in revenue growth, the overall financial health remains strong, supported by efficient operations and prudent financial management.

Income Statement

Renaissancere Holdings shows a mixed performance in its income statement. The TTM data reveals a decline in revenue growth rate by 6.07%, indicating a contraction in sales. However, the company maintains a healthy gross profit margin of 46.42% and a net profit margin of 14.36%, suggesting strong profitability. The EBIT and EBITDA margins are also solid at 23.05% and 23.11%, respectively, reflecting efficient operational management. Despite the recent revenue decline, the company has demonstrated resilience in maintaining profitability.

Balance Sheet

The balance sheet of Renaissancere Holdings is robust, with a low debt-to-equity ratio of 0.19, indicating prudent financial leverage. The return on equity (ROE) stands at 16.03%, showcasing effective utilization of shareholder funds to generate profits. The equity ratio is strong, reflecting a solid capital structure. Overall, the balance sheet indicates financial stability and a conservative approach to debt management.

Cash Flow

Renaissancere Holdings exhibits strong cash flow metrics. The free cash flow growth rate is positive at 6.93%, indicating healthy cash generation. The operating cash flow to net income ratio is not available, but the free cash flow to net income ratio is 1.0, suggesting that the company efficiently converts its earnings into cash. These metrics highlight the company's ability to generate and manage cash effectively, supporting its operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.10B	11.65B	9.09B	5.05B	5.27B	5.16B
Gross Profit	3.33B	3.67B	3.64B	-858.28M	174.46M	1.33B
EBITDA	2.79B	3.35B	3.05B	-1.20B	-87.56M	1.06B
Net Income	1.73B	1.87B	2.56B	-1.06B	-40.16M	762.40M
Balance Sheet
Total Assets	54.50B	50.71B	49.01B	36.55B	33.96B	30.82B
Cash, Cash Equivalents and Short-Term Investments	7.72B	6.21B	6.48B	5.86B	7.16B	6.73B
Total Debt	2.23B	1.89B	1.96B	1.17B	1.17B	1.14B
Total Liabilities	35.53B	33.16B	33.45B	26.69B	23.78B	19.87B
Stockholders Equity	11.50B	10.57B	9.45B	5.33B	6.62B	7.56B
Cash Flow
Free Cash Flow	3.99B	4.16B	1.91B	1.12B	2.05B	4.30B
Operating Cash Flow	3.99B	4.16B	1.91B	1.60B	1.23B	1.99B
Investing Cash Flow	-2.58B	-3.06B	-3.82B	-3.02B	-816.30M	-2.30B
Financing Cash Flow	-1.26B	-1.29B	2.59B	725.34M	-302.46M	665.21M

Renaissancere Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 281.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 281.16 is above the 20-day moving average (MA) of 273.94, above the 50-day MA of 264.04, and above the 200-day MA of 248.19, indicating a bullish trend. The MACD of 5.47 indicates Negative momentum. The RSI at 63.74 is Neutral, neither overbought nor oversold. The STOCH value of 83.32 is Negative, 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
HG	82 Outperform	$2.74B	6.36	17.62%	―	22.79%	-5.17%
RNR	78 Outperform	$12.96B	7.81	14.98%	0.57%	-3.96%	-48.08%
SPNT	76 Outperform	$2.56B	13.85	8.09%	―	7.87%	-4.68%
RGA	74 Outperform	$13.37B	15.72	7.19%	1.76%	2.10%	19.23%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EG	64 Neutral	$14.25B	25.18	3.59%	2.37%	8.62%	-78.92%
GLRE	63 Neutral	$497.17M	-308.25	-0.28%	―	5.83%	-101.38%

Renaissancere Holdings Corporate Events

RenaissanceRe’s Earnings Call Highlights Strong Q3 Performance

RenaissanceRe’s Earnings Call Reveals Strong Performance Amidst Market Challenges

RenaissanceRe Reports Strong Q3 2025 Financial Results

RenaissanceRe Holdings Ltd. is a global provider of reinsurance and insurance, specializing in property, casualty, and specialty reinsurance solutions, with a strong presence in various international markets.