Core Viewpoint - RenaissanceRe (RNR) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings picture, which is a significant factor influencing stock prices [2][4]. - Rising earnings estimates are strongly correlated with near-term stock price movements, as institutional investors adjust their valuations based on these estimates [4]. Company Performance and Outlook - The upgrade for RenaissanceRe reflects an improvement in the company's underlying business, which is expected to drive stock appreciation [5]. - Analysts have increased their earnings estimates for RenaissanceRe, with the Zacks Consensus Estimate for the fiscal year ending December 2024 projected at $38.40 per share, representing a year-over-year increase of 2.3% [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - RenaissanceRe's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Viewpoint - The article compares RenaissanceRe (RNR) and Cincinnati Financial (CINF) to determine which stock is more attractive to value investors [1] Group 1: Zacks Rank and Earnings Estimates - RenaissanceRe has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Cincinnati Financial has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank system emphasizes companies with positive estimate revision trends, suggesting RNR is likely experiencing a more favorable earnings outlook [3] Group 2: Valuation Metrics - RNR has a forward P/E ratio of 5.95, significantly lower than CINF's forward P/E of 19.25, indicating RNR may be undervalued [5] - RNR's PEG ratio is 1.25, while CINF's PEG ratio is 2.72, suggesting RNR has a better valuation relative to its expected earnings growth [5] - RNR's P/B ratio is 1.26 compared to CINF's P/B of 1.54, further supporting RNR's more attractive valuation metrics [6] Group 3: Value Grades - RNR has a Value grade of A, while CINF has a Value grade of C, indicating RNR is viewed as a better value investment [6] - Stronger estimate revision activity and more attractive valuation metrics position RNR as the superior option for value investors [7]

Core Viewpoint - Value investing remains a preferred strategy for identifying strong stocks, focusing on companies believed to be undervalued based on fundamental analysis [2] Company Metrics - RenaissanceRe (RNR) holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating it is among the highest-quality value stocks available [3] - RNR has a PEG ratio of 1.35, significantly lower than the industry average of 2.90, suggesting it may be undervalued relative to its expected earnings growth [4] - The P/B ratio for RNR is 1.30, which is attractive compared to the industry average of 1.56, indicating a favorable market value to book value comparison [5] - RNR's P/S ratio stands at 1.13, closely aligned with the industry average of 1.14, suggesting stable revenue performance [6] - The P/CF ratio for RNR is 4.62, which is appealing compared to the industry average of 10.31, indicating a strong cash flow outlook [7] Investment Outlook - The combination of RNR's favorable metrics and strong earnings outlook suggests it is likely undervalued, making it an attractive value stock at this time [8]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A being the highest score indicating better chances of outperforming [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5] Value Score - The Value Score identifies attractive and discounted stocks using various financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - The Growth Score assesses a company's financial health and future outlook by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score helps investors capitalize on price trends, utilizing factors like short-term price changes and earnings estimate revisions [4] VGM Score - The VGM Score combines the three Style Scores to identify stocks with the best overall value, growth potential, and momentum [5] Zacks Rank Integration - The Zacks Rank, based on earnings estimate revisions, is a proprietary model that aids in building a successful investment portfolio [6] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [8] - Stocks with lower ranks (4 or 5) should be avoided, even if they have high Style Scores, due to declining earnings forecasts [9] Company Spotlight: RenaissanceRe Holdings Ltd. (RNR) - RenaissanceRe, established in 1993, specializes in property-catastrophe reinsurance and offers various specialty reinsurance products [10] - RNR currently holds a 3 (Hold) Zacks Rank and has a VGM Score of A, with a Momentum Style Score of A, reflecting a 9.2% increase in share price over the past four weeks [11] - The Zacks Consensus Estimate for RNR's fiscal 2024 earnings has risen by $0.81 to $38.07 per share, with an average earnings surprise of 27.4% [11][12]

[Preliminary Information](index=3&type=section&id=Preliminary%20Information) [Glossary of Defined Terms](index=3&type=section&id=Glossary%20of%20Defined%20Terms) This section provides definitions for key terms and abbreviations used throughout the Form 10-Q, including references to the company ("RenaissanceRe", "we", "us"), specific loss events ("2024 Large Loss Events"), subsidiaries ("DaVinci"), and financial/regulatory terms ("SEC", "GAAP") - The report defines "**2024 Large Loss Events**" as the collapse of the Francis Scott Key Bridge, severe convective storms in the U.S., the Hualien earthquake in Taiwan, and certain aggregate loss contracts triggered during 2024[12](index=12&type=chunk) - The "**Validus Acquisition**" refers to the acquisitions under the Stock Purchase Agreement with AIG, which was completed on November 1, 2023[31](index=31&type=chunk)[375](index=375&type=chunk) [Note on Forward-Looking Statements](index=5&type=section&id=Note%20on%20Forward-Looking%20Statements) This section cautions that the report contains forward-looking statements based on current estimates and assumptions, which are subject to significant uncertainties, listing factors that could cause actual results to differ materially, and states the company undertakes no obligation to update these statements - The company identifies several key risk factors that could materially affect future results, including: - Exposure to natural and non-natural catastrophic events - The effect of climate change on the frequency and severity of climate events - The performance of its investment portfolio and financial market volatility - The effects of inflation - Difficulties in integrating the acquired Validus Business[4](index=4&type=chunk) - The company explicitly states it has no obligation to revise or update forward-looking statements to reflect new information or events after the date of the report[5](index=5&type=chunk) [PART I FINANCIAL INFORMATION](index=7&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [ITEM 1. FINANCIAL STATEMENTS](index=7&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited consolidated financial statements for RenaissanceRe Holdings Ltd. as of June 30, 2024, and for the three and six-month periods then ended, including balance sheets, statements of operations, comprehensive income, changes in shareholders' equity, and cash flows, along with detailed notes [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show significant year-over-year growth, with net income increasing to $1.35 billion, total assets growing to $51.6 billion, and net cash from operations substantially increasing to $1.90 billion, driven by higher premium collections and other operational changes Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | | :--- | :--- | :--- | | **Total Investments** | $30,528,557 | $29,216,143 | | **Total Assets** | $51,567,589 | $49,007,105 | | **Total Liabilities** | $35,053,386 | $33,451,316 | | **Total Shareholders' Equity** | $10,178,895 | $9,454,958 | Consolidated Statement of Operations Highlights (in thousands, except per share data) | Metric | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | **Gross Premiums Written** | $7,416,179 | $5,441,882 | | **Net Premiums Earned** | $4,985,225 | $3,465,812 | | **Total Revenues** | $5,427,945 | $4,058,331 | | **Net Income** | $1,347,090 | $1,215,066 | | **Net Income per Share - Diluted** | $16.35 | $16.71 | Consolidated Cash Flow Highlights (in thousands) | Metric | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $1,895,765 | $626,674 | | **Net Cash from Investing Activities** | $(1,283,608) | $(3,181,266) | | **Net Cash from Financing Activities** | $(853,740) | $2,301,798 | | **Net (Decrease) in Cash** | $(250,371) | $(250,404) | [Notes to the Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the company's accounting policies and financial statement components, covering the $30.5 billion investment portfolio, fair value hierarchy, reinsurance impact, $20.7 billion reserve for claims, debt, noncontrolling interests, and segment-level performance for Property and Casualty & Specialty divisions Fixed Maturity Investments Trading by Type (Fair Value, in thousands) | Investment Type | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | U.S. treasuries | $10,165,179 | $10,060,203 | | Corporate | $7,253,535 | $6,499,075 | | Residential mortgage-backed | $1,762,405 | $1,420,362 | | Asset-backed | $1,458,394 | $1,491,695 | | **Total** | **$22,092,071** | **$20,877,108** | Reserve for Claims and Claim Expenses by Segment (in thousands) | Segment | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Property | $6,996,272 | $7,833,620 | | Casualty and Specialty | $13,744,656 | $12,653,249 | | **Total** | **$20,740,928** | **$20,486,869** | - For the six months ended June 30, 2024, the company recorded net favorable development on prior accident years' net claims and claim expenses of **$205.4 million**, which increased net income, driven by favorable development of **$179.1 million** in the Property segment and **$26.3 million** in the Casualty and Specialty segment[110](index=110&type=chunk)[156](index=156&type=chunk) - The company's share repurchase program was renewed on May 13, 2024, for up to **$500.0 million**. During the six months ended June 30, 2024, **485,071** common shares were repurchased for **$108.5 million**. As of June 30, 2024, **$416.2 million** remained available for repurchase[186](index=186&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=57&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses the company's financial performance, highlighting the successful integration of the Validus acquisition, which drove significant premium growth, covering underwriting results by segment, fee income from capital partners, and investment performance, noting strong performance across its three profit drivers and an outlook on attractive market conditions - The company's strategy focuses on three principal drivers of profit: underwriting income, fee income (from managing third-party capital), and investment income. This diversified model is intended to make the company more resilient to catastrophe activity[351](index=351&type=chunk)[237](index=237&type=chunk) - The integration of the Validus business, acquired on November 1, 2023, is proceeding according to plan and has been a primary driver of premium growth in the first half of 2024[235](index=235&type=chunk)[375](index=375&type=chunk) Summary of Results - Six Months Ended June 30 (in thousands) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | **Gross Premiums Written** | $7,416,179 | $5,441,882 | | **Underwriting Income** | $1,020,018 | $720,634 | | **Total Investment Result** | $460,382 | $603,710 | | **Net Income** | $1,347,090 | $1,215,066 | | **Combined Ratio** | 79.5% | 79.2% | [Underwriting Results by Segment](index=79&type=section&id=Underwriting%20Results%20by%20Segment) For the first six months of 2024, the Property segment's underwriting income grew significantly to $986.1 million with a combined ratio of 48.6%, benefiting from lower large loss event impacts, while the Casualty and Specialty segment's underwriting income decreased to $33.9 million with a combined ratio of 98.9%, impacted by specific losses and higher losses in professional liability and credit lines Property Segment Underwriting Results - Six Months Ended June 30 (in thousands) | Metric (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | **Gross Premiums Written** | $3,642,979 | $2,706,805 | | **Underwriting Income** | $986,138 | $579,689 | | **Combined Ratio** | 48.6% | 59.9% | Casualty & Specialty Segment Underwriting Results - Six Months Ended June 30 (in thousands) | Metric (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | **Gross Premiums Written** | $3,773,200 | $2,735,077 | | **Underwriting Income** | $33,880 | $140,945 | | **Combined Ratio** | 98.9% | 93.0% | [Fee Income](index=83&type=section&id=Fee%20Income) Total fee income from third-party capital management increased by $66.2 million to $167.6 million in the first six months of 2024, driven by a $27.0 million increase in management fees due to more capital managed and the addition of AlphaCat Managers, and a $39.1 million increase in performance fees reflecting strong underwriting results Fee Income Breakdown - Six Months Ended June 30 (in thousands) | Fee Type | 2024 | 2023 | | :--- | :--- | :--- | | **Management Fee Income** | $111,380 | $84,344 | | **Performance Fee Income** | $56,247 | $17,109 | | **Total Fee Income** | **$167,627** | **$101,453** | [Investment Results](index=85&type=section&id=Investment%20Results) For the first six months of 2024, net investment income rose to $801.6 million from $547.0 million, driven by higher average invested assets and yields, but was offset by net realized and unrealized losses of $341.2 million, primarily due to rising interest rates impacting the fixed maturity portfolio - Net investment income increased by **$254.6 million** year-over-year for the first six months, primarily due to higher average invested assets and higher yields[268](index=268&type=chunk) - Net realized and unrealized losses on investments were **$341.2 million** in H1 2024, a significant shift from the **$56.7 million** gain in H1 2023. This was mainly caused by losses of **$292.9 million** in the fixed maturity portfolio due to rising interest rates[270](index=270&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=88&type=section&id=Financial%20Condition,%20Liquidity%20and%20Capital%20Resources) The company maintains a strong financial position with total shareholders' equity of $10.2 billion and total debt of $2.0 billion as of June 30, 2024, supported by robust liquidity with $1.9 billion in cash flow from operations, and a conservatively positioned $30.5 billion investment portfolio focused on high-quality fixed-income securities - Cash flow from operations was **$1.9 billion** for the first six months of 2024, a substantial increase from **$626.7 million** in the same period of 2023[494](index=494&type=chunk)[521](index=521&type=chunk) Capital Structure (in thousands) | Component | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total Shareholders' Equity** | $10,178,895 | $9,454,958 | | **Total Debt** | $1,960,167 | $1,958,655 | - The company's investment portfolio is structured to preserve capital and provide high liquidity, with **72.4%** in fixed maturity investments and **14.3%** in short-term investments as of June 30, 2024[230](index=230&type=chunk)[552](index=552&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=106&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section states that there have been no material changes to the company's principal market risks—interest rate, foreign currency, credit, equity price, and commodity price risk—during the six months ended June 30, 2024, as compared to the disclosures in the 2023 Form 10-K - The company confirms no material changes to its market risk exposures, which include interest rate, foreign currency, credit, equity, and commodity price risks, since its year-end 2023 filing[242](index=242&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=106&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2024, with no material changes to internal control over financial reporting identified during the quarter - Management concluded that as of June 30, 2024, the company's disclosure controls and procedures were effective[243](index=243&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[543](index=543&type=chunk) [PART II OTHER INFORMATION](index=107&type=section&id=PART%20II%20OTHER%20INFORMATION) [ITEM 1. LEGAL PROCEEDINGS](index=107&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company reports that there have been no material changes to the legal proceedings previously disclosed in its Form 10-K for the year ended December 31, 2023 - No material changes to legal proceedings have occurred since the last annual report[544](index=544&type=chunk) [ITEM 1A. RISK FACTORS](index=107&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company states that there have been no material changes to the risk factors previously disclosed in its Form 10-K for the year ended December 31, 2023 - No material changes to risk factors have occurred since the last annual report[567](index=567&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=107&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section details the company's share repurchase activity, noting the Board of Directors renewed the program for up to $500.0 million, with 485,071 shares repurchased for $108.5 million during Q2 2024, leaving $416.2 million available as of June 30, 2024 Share Repurchases - Q2 2024 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 1 - 30, 2024 | 22,975 | $214.77 | | May 1 - 31, 2024 | 165,496 | $223.64 | | June 1 - 30, 2024 | 296,600 | $224.47 | | **Total** | **485,071** | **$223.73** | - As of June 30, 2024, **$416.2 million** remained available for repurchase under the company's authorized share repurchase program[546](index=546&type=chunk)

Financial Data and Key Metrics Changes - The company reported an annualized operating return on average common equity of 28%, which is consistent with Q2 of the previous year, while average common equity increased by two-thirds [7][8] - Operating income for the quarter was $651 million, with an operating EPS of $12.41 per share, reflecting a 40% increase from the previous year [26][27] - Underwriting income was $479 million, up 37% from Q2 2023, and net investment income was $283 million, up 50% [26][27] Business Line Data and Key Metrics Changes - Gross premiums written increased by 29% for the quarter and 36% year-to-date, with property catastrophe and specialty businesses growing by 35% and 82% respectively year-to-date [31][32] - In the property catastrophe segment, gross premiums written were up 26% and net premiums written were up 16% for the quarter [33] - The casualty and specialty portfolio saw gross and net premiums written increase by 34% and 41% respectively, with net earned premiums reaching $1.6 billion, up 52% [38][39] Market Data and Key Metrics Changes - Demand for property catastrophe reinsurance limits in the US increased by approximately $20 billion over the past year, with supply meeting but not exceeding this demand [10] - The current accident year loss ratio for property catastrophe was reported at 19%, impacted by severe weather events [35] - The overall property catastrophe adjusted combined ratio was 25%, benefiting from favorable development from prior accident years [35] Company Strategy and Development Direction - The company aims to continue delivering superior returns, supported by attractive property reinsurance rates and a strong investment portfolio [9][11] - The integration of the Validus Re acquisition is progressing well, with the company achieving its underwriting objectives and retaining key talent [14][17] - The company is focused on optimizing its portfolio and generating attractive fees through its Capital Partners business, which is performing well [12][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current favorable reinsurance environment persisting into 2025, allowing for continued growth in shareholder value [8][70] - The company noted that while interest rates are expected to remain higher than in the past two decades, this will benefit their investment portfolio [11] - Management highlighted the importance of maintaining a strong balance sheet while navigating the hurricane season [30][118] Other Important Information - The company repurchased $170 million of its common shares since the end of the first quarter, reflecting confidence in its share valuation [29] - The operating expense ratio remained flat at 4.3%, with corporate expenses including transaction-related costs from the Validus acquisition [49] Q&A Session All Questions and Answers Question: Can you provide more color on the premium growth in both the legacy Ren and Validus businesses? - Management highlighted strong year-to-date growth, attributing much of it to the Validus acquisition, with over $3 billion of additional premium written [74][75] Question: How are you factoring economic and social inflation into your loss picks? - Management acknowledged volatility in the current accident year loss ratio but stated that overall trends are developing according to expectations [78][80] Question: What is the appetite for writing aggregate covers in the current market? - Management indicated that there is very little appetite for aggregate covers in the market, with most recent losses not stemming from traditional aggregate deals [98][100] Question: Can you elaborate on the competitive environment and capital entering the market? - Management noted a balanced market with significant new demand and capital, emphasizing that pricing resets are persistent and not trending negatively [109][110] Question: Why is the company repurchasing shares ahead of the hurricane season? - Management explained that consistent profitable results have increased their capital base, allowing for share repurchases while still maintaining strong returns [119][120]

Core Insights - RenaissanceRe (RNR) reported quarterly earnings of $12.41 per share, exceeding the Zacks Consensus Estimate of $10.88 per share, and up from $8.79 per share a year ago, representing an earnings surprise of 14.06% [1] - The company achieved revenues of $2.95 billion for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 0.82%, and up from $2.08 billion year-over-year [2] - RenaissanceRe shares have increased approximately 15.2% year-to-date, compared to a 16.5% gain in the S&P 500 [3] Earnings Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The trend of estimate revisions for RenaissanceRe has been unfavorable ahead of the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Insurance - Property and Casualty industry, to which RenaissanceRe belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting that stocks in the top 50% tend to outperform those in the bottom 50% by more than 2 to 1 [9]

Financial Performance - Net income attributable to RenaissanceRe common shareholders for Q2 2024 was $495.046 million, compared to $191.025 million in Q2 2023, representing a 159.9% increase[8]. - Operating income attributable to RenaissanceRe common shareholders for Q2 2024 was $650.846 million, up from $411.453 million in Q2 2023, reflecting a 58.1% increase[8]. - Gross premiums written for Q2 2024 reached $3.425 billion, a 29.1% increase from $2.652 billion in Q2 2023[8]. - Net premiums earned for Q2 2024 were $2.541 billion, compared to $1.785 billion in Q2 2023, marking a 42.4% increase[8]. - Total revenues for the three months ended June 30, 2024, reached $2,828,520 thousand, compared to $1,853,231 thousand for the same period in 2023, marking an increase of around 53%[21]. - Net income attributable to RenaissanceRe for the three months ended June 30, 2024, was $503,890 thousand, compared to $199,869 thousand for the same period in 2023, representing a significant increase of approximately 152%[21]. - For the six months ended June 30, 2024, net income attributable to RenaissanceRe common shareholders was $859,844, up from $755,087 in the prior year[58]. Premiums and Underwriting - Gross premiums written for the six months ended June 30, 2024, reached $7,416,179, a significant increase from $5,441,882 for the same period in 2023, representing a growth of approximately 36.4%[30]. - Net premiums earned for the six months ended June 30, 2024, were $4,985,225, compared to $3,465,812 for the same period in 2023, indicating a growth of about 43.9%[30]. - The combined ratio for the six months ended June 30, 2024, was 79.2%, compared to 93.0% for the same period in 2023, showing an improvement of 14.0 percentage points[30]. - The combined ratio for the three months ended June 30, 2024, was 53.9%, compared to 42.9% for the same period in 2023, indicating a deterioration of 11 percentage points[21]. - The net claims and claim expense ratio for the current accident year for the six months ended June 30, 2024, was 53.8%, compared to 49.7% for the same period in 2023, reflecting an increase of 4.1 percentage points[30]. Investment Performance - The total investment return for Q2 2024 was 4.1%, compared to 1.6% in Q2 2023, indicating improved investment performance[8]. - The net investment income for the three months ended June 30, 2024, was $410,845 thousand, compared to $292,662 thousand for the same period in 2023, reflecting an increase of approximately 40%[21]. - The total investment result for the three months ended June 30, 2024, was $283,261, compared to $69,881 for the same period in 2023, reflecting a significant increase[117]. - Total investment return - annualized for the three months ended June 30, 2024, was 3.6%, down from 1.6% in the same period of 2023[38]. - Net investment income for the six months ended June 30, 2024, was $801,620, down 31.2% from $1,165,348 in the prior year[40]. Shareholder Equity and Book Value - Tangible book value per common share increased to $159.22 as of June 30, 2024, compared to $141.87 at the end of 2023[9]. - Shareholders' equity attributable to RenaissanceRe increased to $10,178,895 as of June 30, 2024, from $9,454,958 as of December 31, 2023, representing a growth of approximately 7.6%[28]. - Book value per common share rose to $179.87 as of June 30, 2024, compared to $165.20 as of December 31, 2023, reflecting an increase of about 8.5%[28]. Operational Expenses - Acquisition expenses for the three months ended June 30, 2024, totaled $644,438 thousand, compared to $422,545 thousand in the same period of 2023, reflecting an increase of about 52%[21]. - Operational expenses for the three months ended June 30, 2024, were $108,039 thousand, up from $80,491 thousand in the same period of 2023, indicating a rise of approximately 34%[21]. - The operating expense ratio remained stable at 4.3% for both June 30, 2024, and March 31, 2024[24]. Claims and Expenses - Net claims and claim expenses incurred for the three months ended June 30, 2024, were $1,309,502 thousand, up from $931,211 thousand in the same period of 2023, indicating a rise of approximately 40%[21]. - The net claims and claim expenses incurred for the six months ended June 30, 2024, totaled $2,475,625, up from $1,732,411 in the prior year, reflecting an increase of approximately 43.0%[30]. - The reserve for claims and claim expenses stood at $20,740,928 as of June 30, 2024, compared to $20,486,869 as of December 31, 2023, indicating a rise of about 1.2%[28]. Market Outlook - The company anticipates continued growth in gross premiums written and net premiums earned in the upcoming quarters, driven by market expansion strategies and new product offerings[77].

Core Insights - The upcoming earnings report for RenaissanceRe is anticipated to influence its stock price, with expectations for better-than-expected results potentially driving the stock higher, while a miss could lead to a decline [1] Earnings Estimates - RenaissanceRe's revenue is projected to be $2.89 billion, reflecting a year-over-year increase of 38.6% [2] - The consensus EPS estimate for RenaissanceRe is $10.88 per share, indicating a year-over-year change of +23.8% [11] Earnings Surprise Prediction - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate being a more recent version [3] - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [4] - RenaissanceRe currently holds a Zacks Rank of 3, which complicates the prediction of an earnings beat [5][22] Historical Performance - In the last reported quarter, RenaissanceRe exceeded earnings expectations with a surprise of +23.53%, posting earnings of $12.18 per share against an expectation of $9.86 [6] - Over the last four quarters, RenaissanceRe has consistently beaten consensus EPS estimates [17] Analyst Sentiment - Recent revisions indicate a bearish sentiment among analysts, with the Most Accurate Estimate being lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.83% [14] - This negative Earnings ESP reading suggests challenges in predicting an earnings beat for RenaissanceRe [15] Industry Comparisons - W.R. Berkley, another player in the insurance industry, is expected to report earnings of $0.92 per share, reflecting a year-over-year change of +21.1%, with revenues projected at $3.3 billion, up 12.3% from the previous year [20]

Core Viewpoint - RenaissanceRe Holdings Ltd. (RNR) is positioned for growth due to its robust financial foundation, strategic acquisitions, and partnerships, with rising premiums from improved underwriting results and a favorable high-interest-rate environment acting as significant growth drivers [1]. Company Overview - RenaissanceRe, headquartered in Pembroke, Bermuda, offers insurance and reinsurance products in both domestic and international markets, founded in 1993, with a current market cap of $11.8 billion [2]. Price Performance - Over the past six months, RenaissanceRe shares have increased by 15.5%, outperforming the industry’s 14.3% and the S&P 500 Index’s 14.8% growth. The forward 12-month price-to-earnings ratio stands at 6.2X, significantly lower than the industry average of 26.7X, indicating affordability [3]. Earnings Estimates - The Zacks Consensus Estimate for RenaissanceRe's current-year earnings is $37.18 per share, with six upward revisions in the past 60 days. The company has consistently beaten earnings estimates in the last four quarters, with an average surprise of 27.9% [4]. Investment Income Growth - RNR anticipates a 28% year-over-year increase in net investment income for 2024, driven by enhanced yields from fixed maturity and short-term portfolios amid a high-interest-rate environment, which is expected to boost profitability [5]. Underwriting Standards and Risk Management - The company’s rigorous underwriting standards are expected to strengthen its bottom line, with anticipated growth in its Specialty business while reducing exposure to sectors like Professional liability and minimizing unpredictable segments such as D&O insurance [6]. Return on Invested Capital - RenaissanceRe's trailing 12-month return on invested capital is 11.9%, exceeding the industry average of 5.9%, indicating strong efficiency in capital investment [7]. Debt and Cash Flow - The total debt to capital ratio is 16.1%, lower than the industry average of 17.8%. As of the first quarter of 2024, the company had cash and cash equivalents of $1.6 billion and debt of $1.9 billion, down from $2 billion at the end of 2023. Free cash flow increased by 13% over the trailing 12-month period [8]. Revenue Growth Projections - The consensus estimate for RenaissanceRe's current-year revenues is $11.5 billion, indicating a 31.5% year-over-year growth, with significant contributions expected from the Property and Casualty & Specialty businesses [12]. Acquisition Synergies - The integration following the Validus acquisition is expected to deliver significant synergies, enhancing the company's capabilities and positioning it to benefit from growing reinsurance demand [13]. Operational Expenses - Rising operational expenses are a concern, having surged 37.1% year-over-year in the first quarter of 2024, with expectations for a further increase of nearly 37% this year. However, the company’s strategic plans are believed to drive long-term growth and profitability [14].