Core Insights - RenaissanceRe (RNR) reported quarterly earnings of $15.62 per share, significantly exceeding the Zacks Consensus Estimate of $9.49 per share, marking an earnings surprise of +64.59% [1] - The company posted revenues of $2.87 billion for the quarter ended September 2025, which fell short of the Zacks Consensus Estimate by 3.67% and decreased from $3.01 billion year-over-year [2] - RenaissanceRe has surpassed consensus EPS estimates three times over the last four quarters, but has only topped revenue estimates once in the same period [2] Earnings Performance - The earnings report indicates a strong performance in terms of EPS, with a year-over-year increase from $10.23 to $15.62 per share [1] - The company had previously reported earnings of $12.29 per share against an expectation of $10.28, resulting in a surprise of +19.55% [1] Stock Performance and Outlook - RenaissanceRe shares have declined approximately 2.6% since the beginning of the year, contrasting with the S&P 500's gain of 16.9% [3] - The company's current Zacks Rank is 3 (Hold), suggesting that shares are expected to perform in line with the market in the near future [6] Future Earnings Expectations - The current consensus EPS estimate for the upcoming quarter is $7.34 on revenues of $2.92 billion, while the estimate for the current fiscal year is $28.11 on revenues of $11.87 billion [7] - The outlook for the industry, particularly the Insurance - Property and Casualty sector, is favorable, ranking in the top 14% of over 250 Zacks industries [8] Industry Context - The Insurance - Property and Casualty industry has shown strong performance, with the top 50% of Zacks-ranked industries outperforming the bottom 50% by a factor of more than 2 to 1 [8] - Berkshire Hathaway B (BRK.B), a competitor in the same industry, is expected to report quarterly earnings of $4.70 per share, reflecting a year-over-year change of +0.4% [9]

Financial Performance - Net income attributable to RenaissanceRe common shareholders for Q3 2025 was $907.67 million, down from $1.17 billion in Q3 2024, representing a decrease of 22.7%[11] - Operating income attributable to RenaissanceRe common shareholders for Q3 2025 was $733.72 million, compared to $540.32 million in Q3 2024, an increase of 35.7%[11] - Total revenues for Q3 2025 were $3,198,182, a decrease of 19.4% from $3,973,775 in Q3 2024[17] - Net income attributable to RenaissanceRe for Q3 2025 was $916,510, down 22.4% from $1,182,487 in Q3 2024[17] - For the nine months ended September 30, 2025, net income attributable to RenaissanceRe common shareholders was $1,865,416, down from $2,003,446 in 2024, reflecting a decline of about 6.9%[100] - Basic earnings per share for the three months ended September 30, 2025, was $19.47, compared to $22.68 in 2024, indicating a decrease of approximately 14.8%[100] - Diluted earnings per share for the three months ended September 30, 2025, was $19.40, down from $22.62 in 2024, representing a decline of about 14.3%[100] Premiums and Underwriting - Gross premiums written for Q3 2025 totaled $2.32 billion, a decrease of 3.2% from $2.40 billion in Q3 2024[11] - Net premiums earned for Q3 2025 were $2.43 billion, down from $2.58 billion in Q3 2024, reflecting a decrease of 5.4%[11] - The combined ratio for Q3 2025 improved to 68.4%, compared to 84.8% in Q3 2024, indicating better underwriting performance[11] - Gross premiums written for the nine months ended September 30, 2025, increased to $9,900,309 from $9,816,315 in the same period of 2024, representing a growth of 0.9%[24] - The combined ratio for the nine months ended September 30, 2025, improved to 92.1% from 81.3% in 2024, indicating better underwriting performance[24] - The combined ratio for Q3 2025 was 101.4%, slightly improved from 101.8% in Q2 2025, reflecting better underwriting performance[32] Investment Results - Total investment result for Q3 2025 was $750.24 million, significantly lower than $1.37 billion in Q3 2024, a decrease of 45.5%[11] - Net investment income for Q3 2025 was $438,354, an increase from $423,859 in Q3 2024[17] - Total investment result for the nine months ended September 30, 2025, was $1,798,689, compared to $1,353,260 for the same period in 2024[129] - The annualized total investment return for the nine months ended September 30, 2025, was 9.9%, up from 8.4% in the same period of 2024[129] - The total investment return - annualized for Q3 2025 was 8.9%, down from 18.3% in Q3 2024, indicating a decline in investment performance[78] Claims and Expenses - Net claims and claim expenses incurred for Q3 2025 were $878,820, down from $1,373,614 in Q3 2024[21] - Total incurred claims and claim expenses for the nine months ended September 30, 2025, amounted to $5,114,509,000, up from $4,069,252,000 in 2024, representing a rise of 26%[55] - The net claims and claim expense ratio for the current accident year was 76.0% for the third quarter of 2025[27] - The net claims and claim expense ratio for the current accident year in Q3 2025 was 67.4%, a slight decrease from 68.2% in Q2 2025[32] Assets and Liabilities - Total assets increased to $54,498,074 as of September 30, 2025, compared to $50,707,550 at the end of 2024[19] - Total liabilities rose to $35,526,649 as of September 30, 2025, up from $33,155,789 at the end of 2024[19] - Reserves for claims and claim expenses totaled $22,712,860,000 as of September 30, 2025, compared to $21,303,491,000 at December 31, 2024[51] Fee Income - Total fee income for Q3 2025 was $101.81 million, up from $82.07 million in Q3 2024, representing a growth of 24.2%[11] - The management fee income for the three months ended September 30, 2025, was $53,014,000, slightly down from $54,945,000 in 2024, indicating a decrease of 3%[59] - Performance fee income for the three months ended September 30, 2025, rose significantly to $48,796,000, compared to $27,120,000 in 2024, marking an increase of 80%[59] Book Value and Equity - Book value per common share increased to $231.23 as of September 30, 2025, compared to $195.77 at the end of 2024, reflecting a growth of 18.1%[14] - The tangible book value per common share increased to $214.57 as of September 30, 2025, representing an 18.1% year-to-date change from $177.18[115] - The year-to-date change in tangible book value per common share plus change in accumulated dividends was 21.8%[15] Noncontrolling Interests - The net income attributable to redeemable noncontrolling interests for the three months ended September 30, 2025, was $(415,200,000), compared to $(450,176,000) in 2024, showing an improvement of 8%[71] - The redeemable noncontrolling interests on the consolidated balance sheet as of September 30, 2025, totaled $7,469,059,000, up from $6,977,749,000 at the end of 2024, reflecting a growth of 7%[75]

Core Insights - RenaissanceRe (RNR) is anticipated to report a year-over-year decline in earnings due to lower revenues for the quarter ended September 2025, with earnings expected to be $9.49 per share, reflecting a decrease of 7.2% [1][3] - Revenues are projected to be $2.98 billion, down 0.8% from the same quarter last year [3] - The consensus EPS estimate has been revised 1.43% lower in the last 30 days, indicating a reassessment by analysts [4] Earnings Expectations - The upcoming earnings report is scheduled for October 28, and stock movement may depend on whether the reported numbers exceed or fall short of expectations [2] - A positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10] - RenaissanceRe currently has an Earnings ESP of 0% and a Zacks Rank of 2, making it challenging to predict an earnings beat conclusively [12] Historical Performance - In the last reported quarter, RenaissanceRe exceeded the expected earnings of $10.28 per share by delivering $12.29, resulting in a surprise of +19.55% [13] - Over the past four quarters, the company has beaten consensus EPS estimates three times [14] Industry Context - Another company in the insurance sector, Universal Insurance Holdings (UVE), is expected to post earnings of $1.1 per share for the same quarter, indicating a significant year-over-year change of +250.7% [18] - Universal Insurance's revenues are expected to be $366.36 million, down 5.5% from the previous year, with an unchanged consensus EPS estimate and an Earnings ESP of 0% [19][20]

Core Viewpoint - RenaissanceRe (RNR) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Recent Performance and Outlook - For the fiscal year ending December 2025, RenaissanceRe is expected to earn $28.11 per share, which remains unchanged from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for RenaissanceRe has increased by 31.3%, reflecting a positive trend in earnings outlook [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating [9][10]. - The upgrade of RenaissanceRe to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Group 1 - RIT Capital Partners holds $48,129,840 worth of RenaissanceRe Holdings Ltd. shares, representing 6.03% of its portfolio, making it the fund's sixth-largest holding as of the end of Q2 [1] - An analyst from Evercore ISI upgraded RenaissanceRe Holdings Ltd. from "Underperform" to "In Line" with a price target of $244 [2] - The upgrade reflects a correction in the analyst's stance, noting that the company's book value per share growth has outpaced its price-to-book de-rating since coverage initiation [3] Group 2 - The analyst expects up to 20% rate softening in the broader reinsurance sector during January renewals but believes RenaissanceRe's current valuation is consistent with weaker market conditions from 2014-2015, indicating limited downside [4] - RenaissanceRe Holdings Ltd. offers reinsurance and insurance products in the U.S. and international markets and is included in Jacob Rothschild's RIT Capital Partners' stock portfolio [5]

Upgrades - RBC Capital upgraded Sealed Air (SEE) to Outperform from Sector Perform with a price target of $48, up from $35, citing stabilization in Protective and continued strength in Food segments, along with over $100 million of cost reductions and G&A optimization [2] - Citi upgraded Tractor Supply (TSCO) to Buy from Neutral with a price target of $62, up from $60, noting same-store sales momentum and earnings growth heading into 2026 [2] - Piper Sandler upgraded PNC Financial (PNC) to Overweight from Neutral with a price target of $220, up from $211, expressing confidence in PNC's near-term prospects due to its conservative guidance and attractive valuation [3] - HSBC upgraded Iqvia (IQV) to Buy from Hold with a price target of $235, up from $195, expecting easing regulatory clouds in pharma to support a re-rating of the shares [3] - MoffettNathanson upgraded Roblox (RBLX) to Neutral from Sell, acknowledging that user metrics have significantly improved driven by new viral experiences [4] Downgrades - Jefferies downgraded Freshpet (FRPT) to Hold from Buy with a price target of $53, down from $97, citing an abrupt and persistent growth slowdown and lack of near-term catalysts [5] - HSBC downgraded Bloom Energy (BE) to Hold from Buy with a price target of $100, up from $44, while expecting consensus estimates to revise higher but awaiting a better entry point [5] - RBC Capital downgraded Graphic Packaging (GPK) to Sector Perform from Outperform with a price target of $21, down from $25, due to oversupply in bleached paperboard limiting price increases [5] - JPMorgan downgraded RenaissanceRe (RNR) to Neutral from Overweight with an unchanged price target of $303, adopting an incrementally cautious view on reinsurance pricing [5] - Northland downgraded Nutanix (NTNX) to Market Perform from Outperform with a price target of $76, highlighting risks related to VMware customer migrations and competition from Red Hat [5]

Core Points - RenaissanceRe Holdings Ltd. will hold an investment community conference call on October 29, 2025, at 10:00 a.m. ET to discuss its Q3 2025 financial results and outlook [1] - The financial results will be released after market close on October 28, 2025 [1] - A live webcast of the conference call will be available through the Investors section of the company's website [1]

Core Insights - TCW Relative Value Mid Cap Fund reported a return of 7.37% in Q2 2025, outperforming the Russell Midcap® Value Index which returned 5.35% [1] - The fund's performance was bolstered by a recovery in U.S. equities following a 90-day pause on certain tariffs, alongside better-than-expected corporate results and positive job reports [1] Company Analysis: RenaissanceRe Holdings Ltd. (NYSE:RNR) - RenaissanceRe Holdings Ltd. is a property & casualty reinsurer with nearly $10 billion in net written premiums for 2024 and a market capitalization of $12.037 billion as of October 2, 2025 [2][3] - The stock has shown a one-month return of 6.27% but has lost 8.56% over the past 52 weeks, closing at $255.75 per share [2] - The company has a strong track record with a compounded book value growth of 13.5% CAGR since its IPO in 1995 and a history of conservative underwriting practices [3] - The acquisition of Validus Re from AIG, which closed in late 2023, is expected to be a primary catalyst for growth, as the new parent company will re-underwrite policies to improve margins and profitability [3] - Current reinsurance premium pricing remains flat to modestly down but still offers attractive margins, with potential redundancy in reserves estimated at $12 per share, which could enhance book value over time [3]

Core Viewpoint - AM Best has revised the outlooks of Renaissance Reinsurance Ltd. and its subsidiaries to positive from stable, affirming strong financial ratings, indicating improved operating performance and favorable market conditions [1][3][4]. Group 1: Rating Changes - AM Best revised the outlook of Renaissance Reinsurance Ltd. and its subsidiaries to positive from stable for the Long-Term Issuer Credit Ratings, while affirming the Financial Strength Rating of A+ [1]. - The outlook of the Financial Strength Rating for the subsidiaries remains stable [2]. - RenaissanceRe Holdings Ltd. also received a positive outlook revision, with affirmed Long-Term ICR ratings of "a-" and A for DaVinci Reinsurance Ltd. [3]. Group 2: Financial Performance - RenaissanceRe's balance sheet strength is assessed as strongest, with adequate operating performance and a very favorable business profile [4]. - Despite elevated global catastrophes, RenaissanceRe has shown substantial improvement in operating performance, particularly in specialty and casualty lines [5][6]. - Investment returns have significantly increased due to higher yields from a relatively short-duration, fixed-income portfolio [6]. Group 3: Market Position and Risks - RenaissanceRe is well-positioned to benefit from favorable market conditions in the global reinsurance space [6]. - The growth in casualty lines may expose the company to potential reserve volatility, but it has reinsurance protection to mitigate adverse developments [6]. - The ability to attract and deploy capital during various market cycles is a key factor in assessing the overall balance sheet strength [7].

Core Viewpoint - AM Best has revised the outlooks for RenaissanceRe's Long-Term Issuer Credit Ratings from stable to positive while affirming its Financial Strength Rating of A+ (Superior) [1] Group 1: Ratings and Outlook - The Long-Term Issuer Credit Ratings (Long-Term ICRs) for RenaissanceRe and its subsidiaries have been affirmed at "aa-" (Superior) [1] - The Financial Strength Rating (FSR) of A+ (Superior) has also been affirmed for RenaissanceRe [1]