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. ...

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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