Core Insights - RenaissanceRe Holdings Ltd. (RNR) has increased its quarterly dividend by 2.5% to 41 cents per share, reflecting a strong commitment to shareholder returns [1][2] - The company has also renewed its share repurchase program, increasing the total to $750 million, indicating confidence in its financial position [3][8] - RNR's operating cash flow for 2025 was $3.7 billion, with net investment income rising to $1.70 billion, showcasing robust financial performance [4][8] Dividend and Shareholder Returns - The new dividend will be paid on March 31, 2026, to shareholders of record as of March 13, 2026 [2] - RNR's dividend yield stands at 0.54%, significantly higher than the industry average of 0.26%, highlighting its strong cash flow and growth prospects [2] - The company has a consistent history of raising dividends for 31 consecutive years since its IPO, emphasizing its shareholder-friendly approach [2] Financial Performance - RNR's total debt at the end of 2025 was $2.33 billion, with cash and cash equivalents increasing to $1.73 billion from $1.68 billion at the end of 2024 [4] - The company generated $1.6 billion in share repurchases and paid $74.8 million in dividends in 2025, reflecting its strong capital management [3][8] - The net investment income increased from $1.65 billion in 2024 to $1.70 billion in 2025, supported by higher average invested assets [4] Market Position and Valuation - RNR shares have appreciated by 32% over the past year, outperforming the industry growth of 5% [7][8] - The stock trades at a forward price-to-earnings ratio of 8.14X, which is below the industry average, indicating potential undervaluation [9] - The Zacks Consensus Estimate for RNR's earnings suggests a decline of 4.7% for 2026, followed by an increase of 11.1% in 2027, reflecting mixed expectations for future performance [10]

Premiums and Segments - Total gross premiums written for the year ended December 31, 2025, reached $11,738,420, a slight increase from $11,733,066 in 2024 and a significant rise from $8,862,366 in 2023[27] - The Property segment generated gross premiums of $4,942,141, accounting for 42.1% of total gross premiums written in 2025, compared to 41.1% in 2024 and 40.2% in 2023[27] - The Casualty and Specialty segment contributed $6,796,279 in gross premiums, representing 57.9% of total gross premiums written in 2025, down from 58.9% in 2024 and 59.8% in 2023[27] - Property segment gross premiums written increased to $4,942,141,000 in 2025, up from $4,823,731,000 in 2024, representing a growth of 2.5%[30] - Casualty and Specialty segment gross premiums written totaled $6,796,279,000 in 2025, a decrease from $6,909,335,000 in 2024, reflecting a decline of 1.6%[34] - The U.S. and Caribbean represented 26.9% of total Property segment gross premiums written in 2025, slightly increasing from 25.5% in 2024[40] - 81.5% of Property segment gross premiums written were generated through subsidiaries and affiliates of the largest brokers, with Aon plc contributing 44.2% and Marsh & McLennan Companies, Inc. contributing 30.4%[103] Underwriting and Risk Management - The underwriting income is driven by three main sources: underwriting income, fee income, and investment income, with a focus on maintaining a disciplined approach to risk selection[19] - The company utilizes a combination of proprietary data sets and sophisticated risk modeling capabilities to enhance risk selection and underwriting performance[23] - The company’s exposure to catastrophe risk is managed through reinsurance purchases to optimize underwriting portfolio outcomes[32] - The company utilizes a proprietary pricing and exposure management system, REMS©, to assess risk and return for each reinsurance contract, enhancing underwriting and risk management capabilities[74] - The company actively integrates climate-related risk considerations into its ERM process, adjusting risk management models to reflect higher levels of risk[89] - The company’s risk management framework operates through a three lines model, ensuring effective oversight and independent assurance of risk management practices[85] - The frequency of claims has shown an upward trend, necessitating a review of underwriting practices[161] Financial Performance and Strategy - The company aims to achieve long-term growth in tangible book value per common share plus accumulated dividends, which is considered the most appropriate measure of financial performance[20] - The financial strength and competitive advantages position the company to effectively manage capital and pursue profitable business opportunities[24] - The company is committed to enhancing its enterprise risk management framework to better navigate market uncertainties[160] - The combined ratio for the period was below 100%, indicating profitable underwriting prior to investment income considerations[161] - The company maintained a strong underwriting capacity, allowing for increased risk acceptance and business growth[165] Investments and Capital Management - The company’s investment unit manages and invests funds generated by consolidated operations, contributing to overall financial performance[38] - The investment portfolio emphasizes capital preservation and liquidity, generating attractive returns on a risk-adjusted basis over time[67] - The majority of the investment portfolio consists of highly-rated fixed income securities, with significant short-term investments and exposure to higher-risk assets like catastrophe bonds[69] - The company is actively managing foreign currency exposures through forward and option contracts to mitigate risks associated with non-U.S. dollar denominated assets[391] - The company is exploring new market opportunities through strategic acquisitions and partnerships to enhance growth[160] Regulatory and Compliance - The company is subject to a new 15% corporate income tax in Bermuda starting from January 1, 2025, affecting profits generated after this date[124] - Regulatory compliance includes submitting quarterly financial returns and annual filings to the BMA, ensuring adherence to solvency and liquidity standards[117] - RREAG must comply with capital, solvency, and reserve requirements under the Swiss Solvency Test, and is believed to have exceeded the minimum requirements as of December 31, 2025[150] - RREAG is required to submit an annual report, including audited financial statements, to FINMA each year[155] Employee and Organizational Development - The total number of employees increased to 1,040 as of February 6, 2026, up from 945 in the previous year, indicating a growth of approximately 10%[105] - The company employs a structured approach to talent acquisition and development, investing in leadership development programs to enhance skills across the organization[106] - RenaissanceRe's commitment to inclusion focuses on supporting talent development and empowering high-performing teams[108] - The company is actively engaged in monitoring employee satisfaction through engagement and culture surveys, using insights to inform targeted actions[107] Claims and Expenses - The company reported a significant increase in claims reserves, reflecting an estimated cost of claims and related expenses[161] - Acquisition expenses increased, driven by higher commissions and administrative costs associated with new business[160] - The company is actively managing additional case reserves to account for specific claims, ensuring financial stability[160] - The reserve for claims and claim expenses was $22.30 billion, with $5.18 billion expected to be paid within the next year[423] Financial Results and Cash Flow - Net realized and unrealized gains on investments increased by $1.2 billion, primarily driven by $886.6 million in fixed maturity-related investments due to decreasing market yields in 2025[392] - Cash flows provided by operating activities in 2025 were $3.69 billion, a decrease from $4.16 billion in 2024[427] - Cash flows used in investing activities were $2.22 billion in 2025, primarily due to net purchases of equity investments totaling $1.6 billion[429] - Cash flows used in financing activities in 2025 were $1.41 billion, which included common share repurchases of $1.6 billion[430] - The net increase in cash and cash equivalents for 2025 was $54.6 million, resulting in a total of $1.73 billion at year-end[428]

Core Insights - RenaissanceRe Holdings Ltd. (NYSE:RNR) is recognized as a strong long-term investment option by hedge funds, with Q4 2025 financial results showing significant earnings growth [1] Financial Performance - The company reported operating earnings of $13.34 per share for Q4 2025, surpassing analyst expectations by approximately 28% [1] - Net income per diluted common share on a GAAP basis was $16.75 [1] - Underwriting income increased to $669 million in Q4 2025, a substantial rise from $209 million in the same quarter the previous year [2] - The overall combined ratio improved to 71.4%, significantly better than the estimated range of 86-91.3% [3] Catastrophe Impact - The lower combined ratio was attributed to reduced catastrophe impacts, with Hurricane Melissa contributing only 10.6% to the property segment's loss ratio, compared to 47.3 percentage points from large loss events in Q4 2024 [2] Strategic Insights - The company's "Three Drivers of Profit" contributed 15 points to the annual return, showcasing a strategy designed to manage volatility from large loss events [3] - Annual operating income reached $1.9 billion, despite a $786 million net negative impact from large events throughout the year [3] - The diversified strategy allowed the company to maintain an 18.2% operating return on average common equity [3] Company Overview - RenaissanceRe Holdings Ltd. is a Bermuda-based global provider of reinsurance and insurance solutions, specializing in catastrophe reinsurance and specialty risk coverage [4]

Core Insights - RenaissanceRe Holdings Ltd. (RNR) reported fourth-quarter 2025 operating income of $13.34 per share, exceeding the Zacks Consensus Estimate by 26% and showing a year-over-year increase of 65.5% [1] - Total operating revenues decreased by 6% year over year to $2.8 billion, missing the consensus mark by 5.7% [1] Financial Performance - The quarterly results benefited from an increase in net investment income and strong underwriting results, while total expenses dropped by 28.1% year over year to $1.7 billion due to declines in claims expenses, acquisition, and operational costs [2][4] - Gross premiums written fell by 4.1% year over year to $1.8 billion, missing the estimate of $1.9 billion, while net premiums earned decreased by 7.6% year over year to $2.3 billion, also falling short of the consensus estimate [3] - Net investment income rose by 4.2% year over year to $446.7 million, surpassing the consensus mark of $439 million [4] Underwriting Results - Underwriting income increased more than threefold year over year to $668.8 million, with a combined ratio of 71.4%, improving by 2,030 basis points year over year [5] - The Property segment saw gross premiums written decline by 11.3% year over year to $346.1 million, with net premiums earned sliding by 2.1% year over year [6] - The Casualty & Specialty segment recorded gross premiums written of $1.5 billion, down 2.3% year over year, and net premiums earned fell by 10.9% year over year to $1.42 billion [8][9] Financial Position - As of December 31, 2025, RenaissanceRe had cash and cash equivalents of $1.7 billion, a 3.3% increase from the end of 2024, and total assets of $53.8 billion, up 6.1% [10] - Total shareholders' equity rose by 9.8% to $11.6 billion, while debt increased by 23.5% to $2.3 billion [10] Share Repurchase Activity - The company repurchased common shares worth approximately $650.5 million in the fourth quarter, with additional repurchases of $113.4 million from January 1, 2026, to January 30, 2026 [11] Full-Year Overview - For the full year 2025, gross premiums written increased marginally to $11.7 billion, while net premiums earned dipped by 1.9% to $9.9 billion [12]

Financial Data and Key Metrics Changes - Operating income for 2025 was reported at $1.9 billion, with an operating return on equity (ROE) of 18% and tangible book value per share plus accumulated dividends growing by 30% [4][5][16] - The company repurchased $650 million of its shares during the fourth quarter, representing 13% of its shares over the course of 2025 [5][6] - The cumulative return on shares since the Validus acquisition has been around 30% [6] Business Line Data and Key Metrics Changes - Underwriting income for the year was $1.3 billion, with a combined ratio of 85% [16][17] - Fee income reached $329 million for the year, with management fees at $207 million and performance fees at $121 million [21][22] - Retained net investment income for the year was $1.2 billion, up 4% from the previous year [23] Market Data and Key Metrics Changes - Property CAT rates were down in the low teens percentage, but the company found opportunities to grow, keeping top-line premium and property CAT down only in the mid-single digits [10][11] - The underwriting portfolio is roughly one-third larger compared to the previous year, with retained net investment income tripling and fee income more than doubling [11] Company Strategy and Development Direction - The company aims to maintain or grow its property business, focus on preserving underwriting margins, and continue to grow fees in its Capital Partners business [12] - The strategy for 2026 includes executing a gross-to-net strategy to arbitrage competitive CAT-bond markets and retro markets [12] - The company is upgrading its underwriting system to be more customer-centric and leveraging artificial intelligence [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver consistent, superior returns to shareholders, citing the diversified sources of income as a key strength [11][40] - The company anticipates that each of its three drivers of profit will remain robust sources of income in 2026 [40] Other Important Information - The company incurred a 15% corporate income tax in Bermuda for the first time in 2025, but still managed to produce excellent returns [24][25] - The Bermuda government introduced substance-based tax credits that will positively impact the company's results [25][26] Q&A Session Summary Question: Property CAT premiums expectation for 2026 - Management confirmed that they expect premiums to be down mid-single digits for the year, with continued rate reductions anticipated during mid-year renewals [42] Question: Expense ratio guidance - The expense ratio guidance for 2026 is expected to be between 5%-5.5%, including the benefit of Bermuda tax credits [43][44] Question: Gold investment and its impact - Management indicated that the gold position serves as a hedge against underwriting and interest rate risks, and they do not have a specific exit price target [48][49] Question: Capital deployment in property risk for 2026 - Management plans to hold risk relatively flat for the Southeast Hurricane, with potential adjustments based on market opportunities [51] Question: Expected returns and rate adequacy in property CAT - Management stated that rate adequacy remains strong despite recent rate declines, and they will focus on selecting the best opportunities for portfolio construction [55][56]

Financial Data and Key Metrics Changes - Operating income for 2025 was reported at $1.9 billion, with an operating return on equity (ROE) of 18% and tangible book value per share plus accumulated dividends growing by 30% [4][5][16] - The company repurchased $650 million of shares in Q4 2025, representing 13% of shares repurchased throughout the year and 17% since Q1 2024 [5][6] - The operating earnings per share for Q4 was $13.34, with a combined ratio of 71% for the year [14] Business Line Data and Key Metrics Changes - Underwriting income for 2025 was $1.3 billion, with a combined ratio of 85% for the year, despite absorbing large losses from events like the California wildfires [14][17] - In Property Catastrophe, the current accident-year loss ratio was 64%, including significant losses from the California wildfires [17] - Fee income reached $329 million for the year, with management fees at $207 million and performance fees at $121 million [21][22] Market Data and Key Metrics Changes - Property Cat rates were down in the low teens percentage-wise, but the company found opportunities to grow, keeping top-line premiums down only in the mid-single digits [10][11] - The underwriting portfolio is approximately one-third larger than before, with retained net investment income tripling and fee income more than doubling compared to 2022 [11] Company Strategy and Development Direction - The company aims to maintain or grow its property business, preserve underwriting margins, and continue returning capital to shareholders through share repurchases [12] - Strategic initiatives include upgrading underwriting systems to be more customer-centric and leveraging artificial intelligence for efficiency [7] - The focus for 2026 includes optimizing the underwriting portfolio and managing exposure to areas most at risk of claims inflation [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver consistent, superior returns to shareholders, citing strong financial performance despite industry headwinds [4][40] - The company anticipates that each of its three drivers of profit will remain robust sources of income in 2026 [40] - Management highlighted the importance of maintaining strong client relationships and a well-constructed underwriting portfolio to support profitability [31][38] Other Important Information - The company incurred a 15% corporate income tax in Bermuda for the first time in 2025, but still managed to produce excellent returns [24] - The Bermuda government introduced substance-based tax credits, which are expected to provide a positive tailwind to results [25] Q&A Session Summary Question: Expectations for Property Cat premiums in 2026 - Management confirmed expectations for mid-single-digit declines in Property Cat premiums for the year, with continued rate reductions anticipated during mid-year renewals [42] Question: Expense ratio guidance and tax credits - The expense ratio guidance of 5%-5.5% for 2026 includes the benefit of Bermuda tax credits, which will increase in value over time [43][44] Question: Gold investment and its impact - Management discussed the gold position as a hedge against underwriting and interest rate risks, with no specific exit price target [48][49] Question: Expected returns and rate adequacy in Property Cat - Management indicated that rate adequacy remains strong despite recent declines in rates, with a focus on selecting the best opportunities for portfolio construction [55][56] Question: Changes in exposure to riot and civil commotion coverage - Management confirmed no significant changes in exposure to riot and civil commotion risks, maintaining tight terms and conditions [66]

Financial Data and Key Metrics Changes - Operating income for 2025 was reported at $1.9 billion, with an operating return on equity (ROE) of 18% and tangible book value per share plus accumulated dividends growing by 30% [4][12] - The company repurchased $650 million of shares in Q4 2025, representing 13% of shares for the year and 17% since Q1 2024 [4][12] - The cumulative return on shares since the Validus acquisition has been around 30% [4] Business Line Data and Key Metrics Changes - Underwriting income for 2025 was $1.3 billion, with a combined ratio of 71% for the year [12][16] - Fee income reached $329 million for the year, with management fees at $207 million and performance fees at $121 million [20] - Retained net investment income for 2025 was $1.2 billion, up 4% from the previous year [21][22] Market Data and Key Metrics Changes - Property CAT rates were down in the low teens percentage, but the company found opportunities to grow, keeping top-line premium and property CAT down only mid-single digits [9][36] - The underwriting portfolio is approximately one-third larger compared to the previous year, with retained net investment income tripling and fee income more than doubling [10] Company Strategy and Development Direction - The company aims to maintain or grow its property business, preserve underwriting margins, and continue growing fees in its Capital Partners business [11] - The strategy includes optimizing the underwriting portfolio and enhancing efficiency through technology and artificial intelligence [5][11] - The company plans to execute a gross-to-net strategy to leverage competitive CAT-bond and retro markets [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver consistent, superior returns despite headwinds such as the California wildfires and a softening reinsurance market [3][10] - The company anticipates that each of its three drivers of profit will remain robust sources of income in 2026 [37] Other Important Information - The company incurred a 15% corporate income tax in Bermuda for the first time in 2025, but still managed to produce excellent returns [23][24] - The Bermuda government introduced substance-based tax credits, which are expected to provide a positive impact on results [24][25] Q&A Session Summary Question: Expectations for property CAT premiums in 2026 - Management confirmed expectations for mid-single-digit declines in property CAT premiums for the year, with continued rate reductions anticipated in mid-year renewals [38][39] Question: Expense ratio guidance - The expense ratio guidance of 5%-5.5% includes the benefit of Bermuda tax credits and reflects ongoing investments in the business [40] Question: Gold investment strategy - Management indicated that the gold position serves as a hedge against underwriting and interest rate risks, with no specific exit price target [42][43] Question: Casualty and specialty segment reserve philosophy - Management stated that the casualty-specialty segment is stable, with cautious reserving practices in place despite favorable development in prior years [51] Question: Changes in exposure to riot and civil commotion coverage - Management confirmed no significant changes in exposure to riot and civil commotion risks, maintaining tight terms and conditions [52]

RenaissanceRe Holdings Ltd. Contents | | Page | | --- | --- | | Basis of Presentation | i | | Financial Highlights | 1 | | Summary Consolidated Financial Statements | | | a. Consolidated Statements of Operations | 3 | | b. Consolidated Balance Sheets | 4 | | Underwriting and Reserves | | | a. Segment Underwriting Results | 5 | | b. Segment Underwriting Results - Five Quarter Trend | 7 | | c. Property Segment - Catastrophe and Other Property Underwriting Results | 10 | | d. Gross Premiums Written | 12 | | e. ...

Group 1 - RenaissanceRe Holdings Ltd. is considered one of the most undervalued quality stocks currently available for investment, with Cantor Fitzgerald raising its price target to $282 from $252 while maintaining a Neutral rating [1] - Wells Fargo has lowered its price target for RenaissanceRe to $281 from $285, while keeping an Equal Weight rating, emphasizing the importance of pricing, loss trends, and reserves for property and casualty companies ahead of quarterly earnings results [3] - The company operates in the reinsurance and insurance sectors, providing products both in the US and internationally, with a focus on Property and Casualty & Specialty segments [4] Group 2 - The initial positive outlook for insurance brokers may have been premature, with expectations of a decline in near-term fundamentals before any improvement is seen [2] - Investors are advised to focus on organic growth and margins for brokers, as well as sales, capital, and guidance for life insurance companies [3]

Core Insights - RenaissanceRe reported a revenue of $2.78 billion for the quarter ended December 2025, reflecting a 6% decrease year-over-year, and an EPS of $13.34, up from $8.06 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $2.95 billion, resulting in a surprise of -5.65%, while the EPS exceeded the consensus estimate of $10.59 by 25.97% [1] Financial Performance Metrics - The Underwriting Expense Ratio for Casualty and Specialty was 32.4%, better than the average estimate of 34.2% from three analysts [4] - The Underwriting Expense Ratio for Property was reported at 27.9%, compared to the average estimate of 28.7% [4] - The Combined Ratio for Property was significantly lower at 21.8%, against the average estimate of 63.5% [4] - The Net Claims and Claim Expense Ratio for Casualty and Specialty stood at 71.1%, higher than the average estimate of 67.1% [4] - The overall Combined Ratio was 71.4%, compared to the average estimate of 86% [4] - The Combined Ratio for Casualty and Specialty was 103.5%, slightly above the average estimate of 101.4% [4] - The Underwriting Expense Ratio overall was 30.7%, compared to the average estimate of 32% [4] Premiums and Investment Income - Net premiums earned in Casualty and Specialty were $1.42 billion, below the average estimate of $1.49 billion, marking a 10.9% decline year-over-year [4] - Net premiums earned in Property were $918.78 million, also below the average estimate of $1.01 billion, reflecting a 2.1% decrease compared to the previous year [4] - Net investment income was reported at $446.66 million, slightly above the average estimate of $439.41 million, showing a year-over-year increase of 4.2% [4] - Equity in earnings (losses) of other ventures was $20.62 million, exceeding the average estimate of $10.01 million, representing a significant year-over-year increase of 40.7% [4] - Total net premiums earned were $2.33 billion, lower than the average estimate of $2.5 billion, indicating a 7.6% decline compared to the year-ago quarter [4] Stock Performance - RenaissanceRe shares have returned +2.5% over the past month, outperforming the Zacks S&P 500 composite's +1.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]