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. ...

The market expects RenaissanceRe (RNR) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on January 28, 2025, might help the stock move higher if these key numbers ...

RenaissanceRe Holdings Ltd. (RNR) is currently aided by improved premiums and investment income, sturdy segmental performances, buyouts, and a solid financial position. The rise in returns from the fixed maturity portfolio and improving underwriting results add further momentum.In the past six months, RNR has delivered 11% growth, outperforming the industry’s 2.1% growth. The company’s price performance also outperformed its peers, such as First American Financial Corporation (FAF) and Fidelity National Fin ...

RenaissanceRe Holdings Ltd. (RNR) is currently trading at a discount compared to the industry average. The stock is currently trading at 1.34X, trailing 12-month tangible book value, which compares to 1.57X for the industry, indicating undervaluation. The company has a Value Score of B.Image Source: Zacks Investment ResearchIn the past three months, RNR has delivered 5.9% growth, outperforming the industry’s 2.8% growth. The company’s price performance also outperformed its peers, such as First American Fin ...

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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.It also includes access to the Zacks Style Scores.What are the Zacks Style Scores?The Zacks Style Score ...

RenaissanceRe Holdings Ltd. (RNR) reported third-quarter 2024 operating income of $10.23 per share, which surpassed the Zacks Consensus Estimate by 29.7%. The bottom line advanced 21.6% year over year.Total operating revenues soared 45.7% year over year to $3 billion. The top line beat the consensus mark by 3.7%.Its shares lost 4.4% on Thursday. Despite the earnings beat, the quarterly results were hurt by a rise in total expenses due to increased claims and acquisition costs, alongside a deterioration in c ...

Financial Data and Key Metrics - Operating income for Q3 2024 was $540 million, representing a 22% operating return on average common equity [5] - Year-to-date operating income reached $1.8 billion with a 26% operating return on equity [5] - Net income for Q3 2024 was $1.2 billion, with an annualized return on average common equity of 47% [22] - Underwriting income was $394 million with an adjusted combined ratio of 82% [23] - Retained net investment income was $292 million, up 35% year-over-year [23] - Tangible book value per share plus accumulated dividends increased by 30% since December 2023 [25] Business Line Performance - Property Catastrophe gross premiums written increased by 114% to $344 million, while net premiums written grew by 175% to $262 million [29] - Other Property gross premiums written rose by 28%, and net premiums written increased by 26% [32] - Casualty and Specialty net premiums written grew by 45% and 50%, respectively [35] - Fee income from Capital Partners business was $82 million, up 27%, with management fees at $55 million and performance fees at $27 million [39] Market Performance - The Property Catastrophe market remains disciplined with reinsurers holding on retentions and terms, despite increased demand for reinsurance [16] - U S cat limit purchases are estimated to increase by $10 billion in 2025, creating new opportunities [17] - Casualty lines are increasingly competitive, with the company engaging customers to provide feedback on rate and trend observations [21] Strategic Direction and Industry Competition - The acquisition of Validus has significantly contributed to growth across underwriting, investments, and Capital Partners business [8] - The company has successfully integrated Validus, unlocking $1 billion in capital and increasing financial flexibility [10][11] - The company is focusing on maintaining its book and seeking additional opportunities with existing customers in Specialty lines [18] - The Casualty business cycle is viewed over a 10-year scale, with the company advocating for accelerated rates to maintain attractiveness [20] Management Commentary on Operating Environment and Future Outlook - The company expects the Property market to remain attractive, with favorable rate environments in 2025 [17] - Management is optimistic about achieving additional rate increases in Casualty lines due to positive customer engagement [21] - The company anticipates continued strong returns in 2025, driven by its three profit drivers: underwriting, investments, and Capital Partners [5] Other Important Information - The company increased its share repurchase authorization from $500 million to $750 million, reflecting its larger scale and capital flexibility [14] - Hurricane Milton is estimated to have a net negative impact of $275 million in Q4 2024, based on an industry loss estimate of $25 billion [34] - The Bermuda Government will implement a 15% corporate income tax in 2025, with the company starting to accrue for this tax in Q1 2025 [45] Q&A Session Summary Question: Impact of excess capital on 1 1 renewals and potential rate declines [72] - The company believes the additional $10 billion in new capacity will stabilize the pricing environment, with rates remaining fair and adequate [72] Question: Casualty Specialty combined ratio and reserve adjustments [73] - The company is increasing the combined ratio to mid-to-upper 90s in 2025, reflecting forward-looking trends and current accident year adjustments [74][75] Question: Loss trend issues and prior year reserves [80] - The company's reserving process is independent of client bookings, with a focus on maintaining resilient reserves through prudent underwriting and portfolio construction [81] Question: Share repurchase authorization increase [82] - The increase reflects the company's larger scale and the completion of Validus integration, providing greater capital flexibility [83][84] Question: Equity capital needs and excess capital [86] - The company manages with a degree of undeployed capital for flexibility, expecting opportunities to deploy capital in 2025 while returning excess to shareholders [86] Question: Impact of European losses on 1 1 renewals [87] - Loss activity in Europe and North America is expected to stabilize retentions and structures, with price discussions centered around current levels [87] Question: Adequacy of share repurchase authorization [91] - The company evaluates share repurchase opportunities quarterly, with the ability to deploy capital into the business and return excess to shareholders [94] Question: Special dividends as a capital return mechanism [95] - The company prefers share buybacks due to their accretive nature to tangible book value per share, with no immediate plans for special dividends [95] Question: Casualty and Specialty reserve movement by accident year [96] - Purchase accounting adjustments affected prior year reserves by approximately $10 million, with the company maintaining a balanced portfolio in better years [96][97] Question: Shifting focus to excess of loss in Casualty lines [98] - The company emphasizes quota share structures for alignment with clients, with seeding commissions reducing and benefiting net positions [98][99] Question: Casualty Specialty guidance and rate assumptions [102] - The company has priced in additional loss trend and rate increases for 2025, reflecting market responses to accelerating loss trends [103] Question: Retrocapacity availability in 2025 [107] - The company expects stable retrocapacity in 2025, with plans to purchase slightly less retro to shape its portfolio [107] Question: Casualty loss ratio improvement assumptions [110] - The company sets initial loss picks independently and adjusts curves slowly, reflecting cautious reserving practices and a focus on margin enhancement [110][112] Question: Engagement with Casualty seeding and reserve adjustments [114] - The company has engaged early with brokers and clients to gather data on trends, claim settlement practices, and underwriting adjustments for 2025 pricing [114][115]