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Renaissancere Holdings Ltd (RNR)
NYSE:RNR
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Renaissancere Holdings
(NYSE:RNR)
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Rating:80Outperform
Price Target:
$332.00
▲(11.16% Upside)
Action:ReiteratedDate:02/12/26
The score is driven primarily by strong financial performance with conservative leverage and an attractively low P/E valuation. Technicals are supportive with an established uptrend. The latest earnings call adds confidence via strong capital returns and profitability, but ongoing rate pressure and catastrophe-driven volatility keep the score from the high end.
Positive Factors
Robust profitability and ROE
Sustained high operating income and double-digit ROE through 2023–2025 indicate durable underwriting and investment discipline. Strong returns provide internal capital for growth, underwriting capacity and shareholder distributions, improving resilience across multi-year cycles.
Diversified three‑pillar earnings model
Material contributions from underwriting, fees and investment income reduce reliance on any single source. Fee and investment streams help stabilize results when underwriting is challenged, supporting more predictable capital generation and long-term operating leverage.
Strong capital generation and balance sheet growth
Rapid tangible book growth and sizable buybacks reflect persistent capital generation and conservative deployment. Growing equity and disciplined returns bolster underwriting capacity, maintain financial flexibility and signal management's ability to convert earnings into shareholder value over years.
Negative Factors
Catastrophe-driven earnings volatility
Large CAT losses show inherent volatility in reinsurance results; sizable event-driven hits can materially swing annual earnings and capital metrics. This cyclicality constrains predictability of underwriting income and can force capital reallocation or increased reinsurance purchases.
Property CAT rate compression
Sustained rate declines in Property CAT reduce earned premiums and compress underwriting margins over multiple renewals. Prolonged pricing pressure limits organic top‑line growth and forces greater selectivity or reliance on alternative income streams to sustain returns.
Casualty & Specialty underwriting pressure
Combined ratios at or above 100% in Casualty & Specialty indicate underwriting losses or razor‑thin margins. Persistent tight margins reduce internal capital generation and require increased pricing discipline, targeted portfolio changes, or more reinsurance—limiting scalable growth.
Renaissancere Holdings (RNR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.27B
Dividend Yield0.57%
Average Volume (3M)375.94K
Price to Earnings (P/E)5.4
Beta (1Y)0.16
Revenue Growth-3.96%
EPS Growth-48.08%
CountryUS
Employees945
SectorFinancial
Sector Strength70
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)13.34
Shares Outstanding43,488,907
10 Day Avg. Volume416,754
30 Day Avg. Volume375,941
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)1.09
Price to Sales (P/S)0.99
P/FCF Ratio3.42
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue1.07
Enterprise Value/Gross Profit2.62
Enterprise Value/Ebitda3.29
Forecast
1Y Price Target
$313.62Price Target Upside5.00% Upside
Rating ConsensusHold
Number of Analyst Covering13
EPS Forecast (FY)37.81
Revenue Forecast (FY)$9.84B
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 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 Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call highlights substantial financial strength and execution: strong operating income, very large tangible book value growth, robust returns from investments and fees, active capital return via repurchases, and diversified portfolio positioning. Key challenges include a material wildfire-related underwriting loss, continued pricing pressure in Property CAT and tight underwriting margins in Casualty & Specialty (adjusted combined ratio above 100% in 2025). Management emphasizes strategic mitigants (selective deployment, ceded reinsurance, capital partners, tax credits, and technology/integration investments) and expects the three drivers of profit to remain robust in 2026. On balance, the positive operational and capital outcomes outweigh the notable event-driven and market-pressure headwinds.Q4-2025 Updates
Positive Updates
Strong Overall Financial Performance
Operating income of $1.9 billion for 2025; operating ROE of 18% for the year and 22% in Q4; operating EPS in Q4 of $13.34.
Exceptional Tangible Book Value Growth
Tangible book value per share plus accumulated dividends grew ~30% (Bob cited 31%) in 2025 and has more than doubled over the last 3 years.
Disciplined Capital Return and Share Repurchases
Repurchased $650 million of shares in Q4; repurchased 13% of shares during 2025 and 17% since Q1 2024; returned approximately $1.6 billion to shareholders in 2025 (over 6.4 million shares repurchased at prices near book value).
Three Diversified Drivers of Profit Performing Well
Underwriting income of $1.3 billion for 2025 (including large wildfire loss), fee income of $329 million (management fees $207M; performance fees $121M), and retained net investment income of $1.2 billion (up 4% year-over-year).
Quarterly Underwriting Strength
In Q4, underwriting income was $669 million with a combined ratio of 71%; fees of $102 million and retained investment income of $314 million — both among the highest reported.
Investment Gains and Portfolio Positioning
Retained mark-to-market gains of $1.1 billion for the year, including ~ $400 million attributable to a gold position (gold doubled in price since the position was initiated); retained yield-to-maturity of 4.8% and reduced portfolio duration to 3.0 years (from 3.4 years).
Property Cat Growth Opportunities and Portfolio Resilience
Gross premiums written in Property Cat grew ~5% in 2025; management highlights that modeled margins remain well above cost of capital and the company selectively deployed additional capacity into attractive opportunities.
Capital Partners Momentum
Capital Partners fees increased year-over-year (total fees $329M), with performance fees recovering after the wildfire-impacted quarter and strong third-party engagement expected to keep fees a key driver.
Expense and Tax Management Benefits
Operating expense ratio for 2025 was 4.7% (reduced by Bermuda substance-based tax credits); recognized ~ $70 million cash benefit from Bermuda deferred tax asset; Bermuda tax credits reduced annual operating expense ratio by ~60 basis points and corporate expenses by ~15% in 2025.
Negative Updates
Large California Wildfire Impact
Underwriting included a $1.1 billion underwriting loss from the California wildfires in 2025; the company noted a $786 million net negative impact from margin effects over the year but still delivered $1.9B operating income.
Casualty & Specialty Underwriting Pressure
Casualty & Specialty reported an adjusted combined ratio of 102% for the year (Q4 impacted by UPS aircraft crash and Grasberg mine landslide adding ~4 percentage points); management expects the segment to see tighter margins with an adjusted combined ratio in the high-90s absent large losses.
Rate Pressure in Property Cat Market
Property CAT rates were down low-teens at the January 1 renewals and ceded rates down high-teens; company expects continued rate reductions into midyear renewals which will pressure top-line premiums (Property CAT top line expected mid-single digit decline for the year, excluding reinstatement premiums).
Other Property Premium Decline
Gross premiums written in Other Property declined ~11% in 2025 as exposure was held flat amid a declining rate environment, despite delivering strong underwriting results (current accident year loss ratio 62%).
Flat Overall Premium Growth
Gross premiums written for 2025 were $11.7 billion and net premiums written $9.9 billion — both roughly flat versus 2024, indicating limited top-line expansion outside selected growth areas.
Yield Compression and Investment Mix Shifts
Retained yield-to-maturity fell to 4.8% from 5.3% in Dec 2024 due to falling short-term yields — a downward pressure on future investment income despite 2025 investment gains.
Increased Expense Guidance Reflecting Investments
Management expects operating expense ratio to average between 5% and 5.5% in 2026 (up from 4.7% in 2025) as the company invests in systems, integration and talent to operate at larger scale (guidance is after tax-credit effects).
Company Guidance
The company guided that Property CAT rates were down low‑teens at the Jan 1 renewal, with Property CAT gross premiums written having grown 5% in 2025 but top‑line Property CAT expected to be down only mid‑single digits in 2026 (ex‑reinstatements) and ceded rates down high‑teens; Q1 targets include Other Property net premiums earned ≈ $360M with attritional loss ratio in the mid‑50s and Casualty & Specialty net premiums earned ≈ $1.4B with an adjusted combined ratio in the high‑90s (absent large losses). They expect management fees ≈ $50M and performance fees ≈ $30M in Q1, retained net investment income to be at similar levels (2025 retained NII = $1.2B, up 4%), and an operating expense ratio that was 4.7% in 2025 but is expected to average 5.0–5.5% in 2026 after Bermuda substance‑based tax credits (2025 credits reduced operating expenses by ~60 bps, recognized at 50% in 2025, 75% in 2026, 100% in 2027). Key 2025 metrics and capital actions referenced to frame the guidance: operating income $1.9B, operating ROE 18% (Q4 operating EPS $13.34 and Q4 operating ROE 22%), tangible book value per share + accumulated dividends up ~30% (31%) in 2025, underwriting income $1.3B (including $1.1B wildfire loss), adjusted underwriting combined ratio 85% for the year, GWP $11.7B / NPW $9.9B, fee income $329M (management $207M, performance $121M), retained MTM gains $1.1B (including >$400M from gold), retained YTM 4.8% and duration ~3 years, and $1.6B returned to shareholders in 2025 (repurchased >6.4M shares, $650M repurchased in Q4).Renaissancere Holdings Financial Statement Overview
Summary
Strong recent profitability (2023–2025) and conservative leverage support resilience and underwriting capacity. The key offset is notable earnings and cash-flow volatility, including losses/negative returns in 2021–2022 and uneven operating cash flow timing typical of reinsurance.Income Statement
Profitability is strong in the last three annual periods, with solid gross and net margins and healthy operating profitability. Revenue growth accelerated meaningfully in 2023 and remained positive in 2024–2025. The key risk is earnings volatility: 2021–2022 included losses and sharply negative margins, highlighting the cyclical and event-driven nature of reinsurance results.78
Positive
Balance Sheet
Leverage appears conservative with low debt relative to equity across the period, and equity has grown materially since 2022—supporting underwriting capacity and resilience. Returns on equity are strong in 2023–2025, but the business showed negative returns in 2021–2022, reinforcing that capital outcomes can swing materially in weaker underwriting years.82
Very Positive
Cash Flow
Cash generation is generally solid, with free cash flow matching operating cash flow in 2023–2025 and tracking net income closely in 2024–2025. However, free cash flow growth turned negative in 2025 after a strong 2024, and operating cash flow has been uneven year-to-year (including a notably weaker 2023 versus 2024–2025), which is consistent with working-capital and loss-payment timing variability in insurance.71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 12.75B | 11.65B | 9.09B | 5.05B | 5.27B |
| Gross Profit | 5.18B | 3.67B | 3.64B | -858.28M | 174.46M |
| EBITDA | 4.14B | 3.35B | 3.05B | -1.20B | -87.56M |
| Net Income | 2.68B | 1.87B | 2.56B | -1.06B | -40.16M |
Balance Sheet | |||||
| Total Assets | 53.80B | 50.71B | 49.01B | 36.55B | 33.96B |
| Cash, Cash Equivalents and Short-Term Investments | 32.96B | 6.21B | 6.48B | 5.86B | 7.16B |
| Total Debt | 2.33B | 1.89B | 1.96B | 1.17B | 1.17B |
| Total Liabilities | 34.59B | 33.16B | 33.45B | 26.69B | 23.78B |
| Stockholders Equity | 11.61B | 10.57B | 9.45B | 5.33B | 6.62B |
Cash Flow | |||||
| Free Cash Flow | 3.69B | 4.16B | 1.91B | 1.12B | 2.05B |
| Operating Cash Flow | 3.69B | 4.16B | 1.91B | 1.60B | 1.23B |
| Investing Cash Flow | -2.22B | -3.06B | -3.82B | -3.02B | -816.30M |
| Financing Cash Flow | -1.41B | -1.29B | 2.59B | 725.34M | -302.46M |
Renaissancere Holdings Technical Analysis
Positive
298.68
Price Trends
284.07
Positive
271.51
Positive
257.00
Positive
Market Momentum
6.20
Positive
54.42
Neutral
42.65
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 298.68 is above the 20-day moving average (MA) of 296.70, above the 50-day MA of 284.07, and above the 200-day MA of 257.00, indicating a bullish trend. The MACD of 6.20 indicates Positive momentum. The RSI at 54.42 is Neutral, neither overbought nor oversold. The STOCH value of 42.65 is Neutral, 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $2.97B | 7.13 | 22.39% | ― | 22.79% | -5.17% | |
80 Outperform | $13.27B | 5.45 | 23.79% | 0.57% | -3.96% | -48.08% | |
78 Outperform | $14.32B | 12.34 | 9.74% | 1.76% | 2.10% | 19.23% | |
75 Outperform | $14.26B | 8.99 | 10.85% | 2.37% | 8.62% | -78.92% | |
72 Outperform | $2.47B | 5.77 | 20.86% | ― | 7.87% | -4.68% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $477.39M | -299.58 | -0.28% | ― | 5.83% | -101.38% |
* Financial Sector Average
RNR
Renaissancere Holdings
298.39
66.29
28.56%
EG
Everest Group
337.82
-1.48
-0.44%
GLRE
Greenlight Capital Re
14.38
0.79
5.81%
RGA
Reinsurance Group
220.42
23.46
11.91%
SPNT
SiriusPoint
21.26
6.04
39.68%
HG
Hamilton Insurance Group, Ltd. Class B
31.77
12.41
64.10%
Renaissancere Holdings Corporate Events
Business Operations and StrategyPrivate Placements and Financing
RenaissanceRe Extends Secured Letter of Credit Facility
Positive
Dec 22, 2025
On December 22, 2025, Citibank Europe and several RenaissanceRe group companies executed an amendment to their secured letter of credit facility, extending the facility’s availability end date to December 31, 2026 and its expiry date to December 31, 2027, while keeping all other terms unchanged. The facility continues to provide up to $320 million in letters of credit, with the option to increase capacity to $350 million subject to conditions, underscoring the group’s continued access to bank-backed collateral support and reinforcing its financial flexibility and operational capacity in the reinsurance and specialty insurance markets.
The most recent analyst rating on (RNR) stock is a Hold with a $281.00 price target. To see the full list of analyst forecasts on Renaissancere Holdings stock, see the RNR Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.