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Renaissancere Holdings Ltd (RNR)
NYSE:RNR
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Renaissancere Holdings
(NYSE:RNR)
79Outperform
Positive Factors
Market Positioning
Ren is encouraged by trading conditions for the mid-year renewals as the market is more in favor of reinsurers, with supply and demand more in balance.
Reinsurance Pricing
Reinsurance pricing is expected to improve in 2026, which should support ROE.
Valuation
The stock is considered undervalued, making it an attractive valuation.
Negative Factors
Earnings
Ren shares traded down on the messy quarter, plus guide down on other property and casualty/specialty combined ratios.
Macro Uncertainty
The stock is facing temporary headwinds due to macro uncertainties, weak property-catastrophe pricing, and losses from California wildfires.
Natural Disasters
Near-term ROE is under pressure due to California wildfires, various aviation-related accidents, and a soft pricing environment.
Renaissancere Holdings (RNR) vs. S&P 500 (SPY)
Market Cap
$11.54B
Dividend Yield0.65%
Average Volume (3M)554.43K
Price to Earnings (P/E)7.5
Beta (1Y)0.15
Revenue Growth32.10%
EPS Growth-30.52%
CountryUS
Employees945
SectorFinancial
Sector Strength85
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)31.42
Shares Outstanding48,650,085
10 Day Avg. Volume582,659
30 Day Avg. Volume554,431
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.89
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit1.87
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$278.09Price Target Upside14.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
Renaissancere Holdings Business Overview & Revenue Model
Company DescriptionRenaissanceRe 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 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 demonstrates robust financial health with strong revenue growth, high profitability, and a solid balance sheet. Despite a slight decline in net income, the company maintains strong operational efficiency and cash management practices.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.88
Very Positive
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.92
Very Positive
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.85
Very Positive
| 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 |
| 11.65B | 9.09B | 5.05B | 5.27B | 5.16B | EBIT |
| 2.99B | 3.14B | -1.05B | -61.70M | 765.05M | EBITDA |
| 3.35B | 3.28B | -1.25B | -126.27M | 1.09B | Net Income Common Stockholders |
| 1.87B | 2.53B | -1.16B | -103.44M | 762.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.68B | 6.48B | 5.86B | 7.16B | 6.73B | Total Assets |
| 50.71B | 49.01B | 36.55B | 33.96B | 30.82B | Total Debt |
| 1.89B | 1.96B | 1.17B | 1.17B | 1.14B | Net Debt |
| 210.09M | 81.14M | -23.90M | -690.67M | -600.55M | 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
Positive
243.24
Price Trends
238.23
Positive
243.41
Negative
250.43
Negative
Market Momentum
0.43
Negative
53.79
Neutral
82.89
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 243.24 is above the 20-day moving average (MA) of 236.44, above the 50-day MA of 238.23, and below the 200-day MA of 250.43, indicating a neutral trend. The MACD of 0.43 indicates Negative momentum. The RSI at 53.79 is Neutral, neither overbought nor oversold. The STOCH value of 82.89 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $11.54B | 7.55 | 16.30% | 0.65% | 32.10% | -30.52% | |
77 Outperform | $12.35B | 17.44 | 7.21% | 1.88% | 19.29% | -19.91% | |
73 Outperform | $16.12B | 10.61 | 10.14% | 2.23% | 18.47% | -46.75% | |
72 Outperform | $1.85B | 4.77 | 18.30% | ― | 57.67% | 62.05% | |
71 Outperform | $2.60B | 16.04 | 8.71% | ― | -7.05% | -52.10% | |
65 Neutral | $451.32M | 10.58 | 6.95% | ― | 7.75% | -49.93% | |
64 Neutral | $12.65B | 9.74 | 8.04% | 17044.64% | 12.65% | -5.11% |
* Financial Sector Average
Performance Comparison
RNR
Renaissancere Holdings
243.24
26.32
12.13%
EG
Everest Group
348.39
-13.52
-3.74%
GLRE
Greenlight Capital Re
13.06
0.59
4.73%
RGA
Reinsurance Group
197.76
-0.52
-0.26%
SPNT
SiriusPoint
17.95
5.86
48.47%
HG
Hamilton Insurance Group, Ltd. Class B
18.85
4.76
33.78%
Renaissancere Holdings Earnings Call Summary
Earnings Call Date:Apr 23, 2025
(Q1-2025)
| % Change Since: 1.37%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a company resilient in the face of significant challenges, with robust investment income and capital management offsetting underwriting losses. However, the impact of large events such as the California wildfires and an increased combined ratio in Casualty and Specialty segments highlighted ongoing challenges.Q1-2025 Updates
Positive Updates
Strong Tangible Book Value Growth
Despite catastrophe losses, the tangible book value per share plus accumulated dividends increased quarter over quarter, supported by a net GAAP profit and $380 million returned to shareholders through dividends and share repurchases.
Resilient Investment Income
Net investment income remained strong at $279 million on a retained basis, contributing significantly to offsetting underwriting losses.
Effective Capital Management
The company repurchased $361 million worth of shares in Q1 and an additional $65 million after the quarter's end, showcasing strong capital and liquidity positions.
Stable Credit and Specialty Portfolio
The company maintained a cautious approach, reducing exposure to general liability while leveraging growth in mortgage deals, reflecting a well-balanced and profitable portfolio.
Negative Updates
California Wildfires Impact
The California wildfires led to a net negative impact of $700 million after-tax, significantly affecting the company's underwriting results.
Increased Casualty and Specialty Combined Ratio
The combined ratio guidance for the Casualty and Specialty segment was revised from mid to high 90s due to several large specialty losses and elevated acquisition expenses.
Impact on Fee Income
Fee income was impacted by large events, with a reported $30 million, down 64% from the previous year.
Company Guidance
During the RenaissanceRe Holdings Ltd. first-quarter 2025 earnings call, several key metrics were highlighted to provide insight into the company's performance and outlook. The company reported an operating loss for the quarter, but on a net GAAP basis, it achieved a profit, primarily due to diversification and favorable mark-to-market gains in its investment portfolio. Tangible book value per share, a primary metric, increased quarter over quarter, despite $380 million being returned to shareholders through dividends and share repurchases. The combined ratio for the quarter was 128%, with a notable impact from large loss events, including California wildfires, which added 52.6 percentage points to the quarterly combined ratio. The company's investment portfolio also delivered strong results, contributing a retained net investment income of $279 million. RenaissanceRe's strategic focus on margin preservation and capital management was emphasized, with 1.5 million shares repurchased during the quarter for $361 million. The company anticipates delivering solid full-year returns on equity, assuming average catastrophe activity for the remainder of the year.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.