Core Viewpoint - RenaissanceRe Holdings Ltd. has launched a new property catastrophe bond fund, the RenaissanceRe Medici UCITS Fund, aimed at providing European and global investors access to its catastrophe bond investment strategy within a regulated UCITS structure in Ireland [1][2][3]. Group 1: Fund Details - The RenaissanceRe Medici UCITS Fund is an extension of the existing RenaissanceRe Medici Fund Ltd., maintaining similar investment principles [2]. - The fund commenced with $340 million in capital, which includes $140 million co-invested by RenaissanceRe [2]. - RenaissanceRe holds a 15.8% non-controlling economic ownership in the Medici entity as of the end of 2024 [2]. Group 2: Strategic Alignment - This initiative aligns with RenaissanceRe's strategy to expand globally, diversify capital sources, and enhance its investment platform [3]. - The new fund aims to attract more third-party capital and broaden the investor base beyond traditional markets [3]. Group 3: Management and Revenue Generation - The Capital Partners team of RenaissanceRe will manage the fund, leveraging 25 years of experience in managing third-party capital and building investor relationships [4]. - The fund is expected to strengthen RenaissanceRe's catastrophe bonds business, efficiently matching capital with risk and creating a stable revenue stream [4]. - RenaissanceRe is positioned to generate consistent returns by utilizing its risk expertise and experience in alternative capital management [4]. Group 4: Market Performance - RenaissanceRe's shares have increased by 7% over the past year, compared to a 15.7% rise in the industry [5].

Premiums and Revenue Growth - Total gross premiums written for 2024 reached $11,733,066, a 32.1% increase from $8,862,366 in 2023[28] - The Property segment generated gross premiums of $4,823,731, accounting for 41.1% of total premiums written in 2024, compared to 40.2% in 2023[28] - The Casualty and Specialty segment contributed $6,909,335 in gross premiums, representing 58.9% of total premiums written in 2024, up from 59.8% in 2023[28] - In 2024, gross premiums written in the Property segment totaled $4,823,731, a 35.3% increase from $3,562,414 in 2023[31] - The Casualty and Specialty segment reported gross premiums written of $6,909,335 in 2024, a 30.4% increase from $5,299,952 in 2023[36] - The total gross premiums written across both segments reached $11,733,066 in 2024, a 32.3% increase from $8,862,366 in 2023[42] Underwriting and Risk Management - The company aims to enhance its underwriting income through disciplined risk selection and superior customer relationships[19] - The management team emphasizes the importance of superior capital management to optimize returns for shareholders[25] - The company utilizes risk management tools to monitor capital and liquidity positions on a consolidated basis and for each major operating subsidiary[84] - The company has integrated climate change considerations into its ERM process, continuously adjusting risk management models to reflect higher risk levels[88] - The company believes that changes in climate conditions have increased the severity and frequency of natural disasters, impacting its economic exposures[86] Strategic Initiatives and Acquisitions - The company is exploring diversification into new ventures through organic growth and potential acquisitions[17] - A recent acquisition of Validus Holdings is expected to contribute an additional $300 million in gross premiums written annually, enhancing the company's competitive position[152] - The company actively pursues strategic investments to enhance risk access and market information, including investments in Tower Hill Companies and TWFG[67] Financial Performance and Ratios - The combined ratio improved to 95%, indicating profitable underwriting prior to investment income considerations, compared to 98% in the previous year[154] - The net claims and claim expense ratio was reported at 60%, reflecting effective claims management and lower loss ratios[154] - The company reported a significant increase in gross premiums written, totaling $1.5 billion for the year ended December 31, 2024, representing a 15% increase year-over-year[155] Capital Management and Liquidity - The company focuses on maintaining financial strength ratings and managing capital effectively to support underwriting opportunities[10] - The capital management business generates management and performance fee income, contributing to a less volatile income source compared to underwriting[45] - RenaissanceRe's liquidity needs for the next 12 months are expected to be met by cash receipts from operations, although future cash flows may fluctuate significantly[407] - The company maintains various credit facilities and trusts to access liquidity and satisfy collateral requirements, which may impact liquidity[409] Regulatory Environment - RenaissanceRe's U.S. subsidiary, Renaissance Reinsurance U.S., is licensed in all 50 states and is subject to significant regulatory oversight[123] - The Bermuda Monetary Authority (BMA) has established a target capital level of 120% of the applicable Enhanced Capital Requirement (ECR) for certain registration categories[120] - The Corporate Income Tax Act 2023 will impose a 15% corporate income tax on profits generated in Bermuda starting January 1, 2025[122] Investment Portfolio - The investment portfolio emphasizes capital preservation and liquidity, with a focus on highly-rated fixed income securities and short-term investments[66] - Total investments increased by $3,423,313, reaching $32,639,456 in 2024, up from $29,216,143 in 2023[434] - U.S. treasuries accounted for 33.7% of total investments, increasing from 34.4% in the previous year, with a total value of $11,001,893[434] Employee and Operational Growth - The company employs 945 people worldwide as of February 7, 2025, an increase from 925 in February 2024 and 731 in February 2023[104] - Corporate expenses rose by $7.1 million to $134.8 million in 2024, primarily due to costs associated with the Validus Acquisition[390] Future Outlook - Future guidance indicates an expected growth in net premiums written by 10% for the upcoming fiscal year, driven by market expansion strategies[155] - The company plans to expand its market presence in Asia, targeting a 20% increase in market share within the next two years[153]

Core Viewpoint - RenaissanceRe Holdings Ltd. reported a decline in operating income for the fourth quarter of 2024, despite a year-over-year increase in total operating revenues, indicating mixed performance driven by premium growth and elevated expenses [1][2][3]. Financial Performance - Operating income for Q4 2024 was $8.06 per share, exceeding the Zacks Consensus Estimate by 5.9%, but down 31.5% year over year [1]. - Total operating revenues reached $3 billion, a 12.6% increase year over year, but fell short of the consensus mark by 1.2% [2]. - Gross premiums written amounted to $1.9 billion, up 6.4% year over year, but missed the estimate of $2.1 billion [4]. - Net premiums earned increased 12.4% year over year to $2.53 billion, although it lagged behind the consensus estimate of $2.56 billion [4]. - Net investment income was $428.8 million, a 13.8% year-over-year improvement, but missed the consensus estimate of $430.3 million [5]. - Total expenses rose 31.6% year over year to $2.38 billion, primarily due to higher net claims and operational expenses [6]. Underwriting Results - Underwriting income was reported at $208.6 million, a significant decline of nearly three-fold year over year [6]. - The combined ratio deteriorated by 1,570 basis points year over year to 91.7% [6]. Segment Performance - In the Property Segment, gross premiums written were $390 million, a 13.2% increase year over year, but below the estimate of $410 million [8]. - The Casualty & Specialty Segment saw gross premiums written rise 4.8% year over year to $1.5 billion, but also fell short of the estimate of $1.7 billion [10]. - The Property Segment's underwriting income dropped 47% year over year to $266.9 million, with a combined ratio of 71.6% [9]. - The Casualty & Specialty Segment incurred an underwriting loss of $58.3 million, contrasting with a prior-year underwriting income of $37.4 million, leading to a combined ratio of 103.7% [11]. Financial Position - As of December 31, 2024, cash and cash equivalents were $1.7 billion, down 10.7% from the previous year [12]. - Total assets increased by 3.5% year over year to $50.7 billion, while total shareholders' equity rose 11.8% to $10.6 billion [12]. Capital Deployment - The company repurchased common shares worth $462.3 million in Q4 2024, with additional repurchases of $137.7 million from January 1 to January 24, 2025 [13]. - A quarterly dividend of 39 cents per share was declared [13]. Full-Year Update - For the full year, gross premiums written reached $11.7 billion, a 32.4% increase year over year, while net premiums earned advanced 35.1% to $10.1 billion [14]. - Operating income for the year improved 14.5% to $42.99 per share [14].

RenaissanceRe (RNR) Q4 2024 Earnings Call January 29, 2025 10:00 AM ET Company Participants Keith McCue - Senior Vice President of Finance & Investor RelationsKevin O’Donnell - President & CEORobert Qutub - Executive VP & CFODavid Marra - Executive VP & Group Chief Underwriting OfficerElyse Greenspan - Managing DirectorMeyer Shields - Managing DirectorBrian Meredith - Managing Director Conference Call Participants Joshua Shanker - Managing Director & Equity AnalystMichael Zaremski - Research AnalystDavid Mo ...

Core Viewpoint - RenaissanceRe Holdings (NYSE: RNR) has experienced a 21% gain over the past year, but shares have recently declined by approximately 10% due to concerns regarding losses from an active hurricane season and California wildfires [1]. Company Performance - The stock has shown moderate performance with a year-over-year increase of 21% [1]. - Recent concerns about natural disasters have led to a 10% drop from its recent high [1]. Market Context - The decline in share price is attributed to fears of increased losses related to a more active hurricane season and ongoing wildfires in California [1].

Core Insights - RenaissanceRe reported $2.96 billion in revenue for Q4 2024, a 12.6% year-over-year increase, but fell short of the Zacks Consensus Estimate by 1.22% [1] - The EPS for the quarter was $8.06, down from $11.77 a year ago, with a surprise of +5.91% compared to the consensus estimate of $7.61 [1] Financial Performance Metrics - Net Claims and Claim Expense Ratio for the calendar year was 58.7%, better than the average estimate of 60.7% [4] - Underwriting Expense Ratio stood at 33%, slightly above the average estimate of 31.9% [4] - Combined Ratio was reported at 91.7%, outperforming the average estimate of 92.6% [4] - Net premiums earned totaled $2.53 billion, a 12.4% year-over-year increase, but below the average estimate of $2.56 billion [4] - Equity in earnings (losses) of other ventures was $14.65 million, exceeding the average estimate of $8.01 million, but down 4.9% year-over-year [4] - Net investment income was $428.81 million, slightly below the estimate of $430.26 million, but up 13.8% year-over-year [4] - Net premiums earned in Property were $938.66 million, below the average estimate of $969.75 million, reflecting a 6.1% year-over-year increase [4] - Other income (loss) was reported at $1.13 million, below the average estimate of $1.56 million, with a significant year-over-year change of +684% [4] - Net premiums earned in Casualty and Specialty reached $1.59 billion, slightly above the average estimate of $1.58 billion, marking a 16.4% year-over-year increase [4] Stock Performance - RenaissanceRe shares returned +5.8% over the past month, outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Core Viewpoint - RenaissanceRe reported quarterly earnings of $8.06 per share, exceeding the Zacks Consensus Estimate of $7.61 per share, but down from $11.77 per share a year ago, indicating a 31.5% year-over-year decline in earnings [1][2] Financial Performance - The company achieved revenues of $2.96 billion for the quarter ended December 2024, which was 1.22% below the Zacks Consensus Estimate, but up from $2.63 billion in the same quarter last year, reflecting a year-over-year revenue growth of 12.6% [2] - Over the last four quarters, RenaissanceRe has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - RenaissanceRe shares have increased approximately 5.8% since the beginning of the year, outperforming the S&P 500's gain of 2.2% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $10.80 on revenues of $3.01 billion, while the estimate for the current fiscal year is $34.22 on revenues of $12.13 billion [7] - The estimate revisions trend for RenaissanceRe is mixed, leading to a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Insurance - Property and Casualty industry is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% of ranked industries [8]

Financial Performance - For the three months ended December 31, 2024, net income available to RenaissanceRe common shareholders was $(198,503) thousand, compared to $1,576,682 thousand for the same period in 2023[12]. - Net income attributable to RenaissanceRe for the year ended December 31, 2024, was $1,870,360, down from $2,561,132 in 2023, a decrease of 26.9%[18]. - Net income available to RenaissanceRe common shareholders for the year ended December 31, 2024, was $1,576,682, a decrease from $2,525,757 in 2023, reflecting a year-over-year decline of 37.5%[106]. - Basic earnings per share for the three months ended December 31, 2024, was $(3.95), compared to $30.51 for the same period in 2023, indicating a significant drop in profitability[106]. - The diluted net income per common share for the year ended December 31, 2024, was $35.21, down from $52.27 in 2023[117]. Premiums and Revenues - Gross premiums written for the year ended December 31, 2024, reached $11,733,066 thousand, an increase from $8,862,366 thousand in 2023[12]. - Net premiums earned for the year ended December 31, 2024, rose to $10,095,760, up from $7,471,133 in 2023, reflecting an increase of 35.0%[18]. - Total revenues for the year ended December 31, 2024, were $11,695,148, compared to $9,134,608 in 2023, marking a growth of 28.0%[18]. - Total fee income for the year ended December 31, 2024, was $326,796 thousand, compared to $236,794 thousand in 2023, showing significant growth[12]. - Management fee income for the year ended December 31, 2024, was $219,860 thousand, an increase from $176,599 thousand in 2023[12]. Underwriting Performance - The combined ratio for the year ended December 31, 2024, was 83.9%, compared to 77.9% in 2023, indicating a decline in underwriting performance[12]. - The combined ratio for Q4 2024 was 91.7%, up from 76.0% in Q4 2023, indicating a decline in underwriting profitability[28]. - The adjusted combined ratio for the total business improved to 81.5% for the year ended December 31, 2024, compared to 77.1% in 2023[132]. - The net claims and claim expense ratio for the current accident year was 61.3% for the year ended December 31, 2024, compared to 53.9% in 2023[12]. - The net claims and claim expense ratio for the current accident year was 73.4% in Q4 2024, significantly higher than 19.3% in Q4 2023[80]. Investment Performance - The total investment result for the year ended December 31, 2024, was $1,626,449 thousand, compared to $1,667,632 thousand in 2023, reflecting a slight decrease[12]. - Net investment income for the year ended December 31, 2024, was $1,654,289, an increase from $1,253,110 in 2023, representing a rise of 32.0%[86]. - The annualized total investment return for the year ended December 31, 2024, was 4.9%, down from 6.5% in 2023[139]. - The net realized and unrealized gains (losses) on investments for the year ended December 31, 2024, were $(41,863), a significant decrease from $285,765 in 2023[139]. - The average yield to maturity of investments was 5.4% for managed investments, down from 5.8% in the previous year[90]. Claims and Expenses - Net claims and claim expenses incurred for the year ended December 31, 2024, were $5,332,981, compared to $3,573,509 in 2023, an increase of 49.2%[25]. - Total paid claims and claim expenses for the year ended December 31, 2024, were $4,742,468, compared to $3,944,711 in 2023, reflecting an increase of 20.3%[58]. - Incurred claims and claim expenses for the year ended December 31, 2024, totaled $5,629,756, compared to $3,950,362 in 2023, representing a rise of 42.5%[58]. - Operational expenses for the year ended December 31, 2024, were $496,588, compared to $375,182 in 2023, reflecting a growth of 32.3%[25]. - Acquisition expenses for the year ended December 31, 2024, totaled $2,643,867, up from $1,875,034 in 2023, an increase of 41.0%[25]. Assets and Book Value - Total assets increased to $50,707,550 as of December 31, 2024, from $49,007,105 in 2023, an increase of 3.5%[20]. - The book value per common share increased to $195.77 as of December 31, 2024, from $165.20 in 2023[15]. - The tangible book value per common share increased to $177.18 as of December 31, 2024, from $141.87 in 2023, reflecting a year-to-date change of 25.0%[125]. - Average invested assets increased to $32,836,567 in 2024 from $27,591,391 in 2023, a growth of 18.1%[82]. - Total investments amounted to $23,390,215, with fixed maturity investments trading at fair value totaling $18,972,543, representing 81.1% of total investments[101]. Acquisitions and Strategic Changes - The company completed the acquisition of Validus Holdings on November 1, 2023, which will impact future financial results starting from the acquisition date[5]. - Acquisition-related purchase accounting adjustments for Validus amounted to $56.0 million for the three months ended December 31, 2024[118]. - Redeemable noncontrolling interests increased to $6,977,749 in 2024 from $6,100,831 in 2023, representing a growth of 14.3%[79]. - The company uses non-GAAP financial measures to provide better comparability and more accurately measure results of operations, which may not be comparable to similar measures used by other companies[110]. - The company reported a net income loss attributable to redeemable noncontrolling interests of $403.01 million for the year ended December 31, 2024, down from $1.09 billion in 2023, indicating improved financial performance[153].

Core Viewpoint - RenaissanceRe Holdings Ltd. (RNR) is expected to report its fourth-quarter 2024 results on January 28, 2025, with earnings estimated at $7.61 per share and revenues of $3 billion, reflecting a year-over-year revenue growth of 14% despite a decline in earnings [1][2]. Financial Performance Estimates - The fourth-quarter earnings estimate has increased by $0.24 over the past month, but the projected earnings indicate a year-over-year decline of 35.3% [2]. - For the full year, RenaissanceRe's revenue estimate stands at $11.8 billion, representing a year-over-year increase of 35.5%, while the earnings estimate is $42.52 per share, indicating a 13.3% rise year-over-year [3]. Earnings Surprise and Predictions - RenaissanceRe has consistently beaten earnings estimates in the past four quarters, with an average surprise of 28% [3]. - The company has a positive Earnings ESP of +0.88%, with the Most Accurate Estimate at $7.68, suggesting a favorable outlook for an earnings beat [4]. Revenue Drivers - The anticipated increase in top-line performance is attributed to higher premiums in the Property, Casualty, and Specialty segments, with net premiums expected to reach $2.6 billion, a 13.9% increase from the prior year [5]. - Improved net investment income is also expected to contribute to revenues, with a consensus estimate of $430.3 million, reflecting a 14.2% rise year-over-year [6]. Segment Performance - The Property unit is projected to benefit from increased reinsurance demand, with net premiums estimated at $969.8 million, a 9.7% increase from the previous year [8]. - The Casualty and Specialty segment is expected to perform well, with net premiums estimated at $1.6 billion, indicating a 15.4% growth year-over-year [9]. Underwriting Challenges - Despite the positive revenue outlook, the company may face challenges due to catastrophe losses, leading to a projected 71.3% decline in underwriting income and a deterioration in the combined ratio to 92.6%, an increase of 1,659 basis points year-over-year [10].

The upcoming report from RenaissanceRe (RNR) is expected to reveal quarterly earnings of $7.61 per share, indicating a decline of 35.3% compared to the year-ago period. Analysts forecast revenues of $2.99 billion, representing an increase of 14% year over year.The current level reflects a downward revision of 0.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period. ...