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].

Core Viewpoint - RenaissanceRe (RNR) is expected to report quarterly earnings of $7.61 per share, reflecting a 35.3% decline year-over-year, while revenues are forecasted to increase by 14% to $2.99 billion [1] Earnings Estimates - Analysts have revised the consensus EPS estimate down by 0.4% over the past 30 days, indicating a collective reassessment of projections [1][2] Revenue Projections - The estimated 'Revenues- Net premiums earned' is projected to be $2.56 billion, showing a year-over-year increase of 13.9% [4] - 'Revenues- Equity in earnings (losses) of other ventures' is estimated at $8.01 million, indicating a significant decline of 48% year-over-year [4] - 'Revenues- Net investment income' is expected to reach $430.26 million, reflecting a 14.1% increase year-over-year [5] - 'Net premiums earned- Property' is forecasted at $969.75 million, representing a 9.7% increase year-over-year [5] Key Ratios - The 'Net Claims and Claim Expense Ratio' is estimated at 60.7%, up from 43.5% in the same quarter last year [5][6] - The 'Underwriting Expense Ratio' is projected to be 31.9%, slightly down from 32.5% reported in the previous year [6] - The 'Combined Ratio' is expected to be 92.6%, compared to 76% in the same quarter last year [6] Segment-Specific Metrics - For the Casualty and Specialty Segment, the 'Net Claims and Claim Expense Ratio' is estimated at 64.0%, up from 62.7% last year [7] - The 'Underwriting Expense Ratio - Casualty and Specialty Segment' is projected to be 33.7%, down from 34.6% in the previous year [7] - The 'Combined Ratio - Casualty and Specialty Segment' is expected to be 97.7%, slightly up from 97.3% last year [8] - The 'Underwriting Expense Ratio - Property Segment' is forecasted at 29.9%, compared to 29.1% in the same quarter last year [8] - The 'Net Claims and Claim Expense Ratio - Property Segment' is projected to be 58.5%, significantly higher than the 14% reported last year [9] Stock Performance - RenaissanceRe shares have increased by 2.5% over the past month, slightly underperforming the Zacks S&P 500 composite, which rose by 2.7% [11]

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 ...

Core Viewpoint - RenaissanceRe Holdings Ltd. (RNR) is currently undervalued compared to the industry average, trading at 1.34X trailing 12-month tangible book value versus 1.57X for the industry, with a Value Score of B [1]. Performance Summary - In the past three months, RNR has achieved a growth of 5.9%, outperforming the industry's growth of 2.8% and its peers, First American Financial Corporation (FAF) at 1.3% and Reinsurance Group of America, Incorporated (RGA) at -0.8%. However, it underperformed the S&P 500's rise of 8.5% [3]. Growth Drivers - RenaissanceRe is pursuing growth through strategic acquisitions and business expansion, notably the acquisition of Validus Re from AIG, which has strengthened its global property and casualty reinsurance operations and enhanced profitability [6]. - The company has a strong cash position, generating $3.9 billion in net operating cash flow over the past 12 months and repurchasing $106.8 million in shares in the third quarter. Increasing premiums from its Property and Casualty & Specialty segments are expected to drive performance further [7]. Earnings Estimates - The Zacks Consensus Estimate for RNR's earnings per share for 2024 is currently $41.94, indicating an 11.7% year-over-year growth. The company has consistently beaten earnings estimates in the past four quarters, with an average surprise of 28%. The consensus estimate for 2024 revenues suggests a 36.6% year-over-year growth [8]. Key Concerns - RenaissanceRe faces rising expenses due to higher net claims, acquisition costs, and operational expenses, expected to escalate by over 44% year-over-year in 2024, which may impact profit margins [9]. - The company's long-term debt to capital ratio stands at 43.9%, significantly higher than the industry average, with debt increasing from $1.2 billion at the end of 2022 to $1.9 billion as of September 30, 2024. This has led to a 41.1% year-over-year increase in interest expenses in the first nine months of 2024 [10]. Conclusion - RenaissanceRe demonstrates strong growth potential through strategic acquisitions, rising premiums, and robust underwriting results, supported by strong cash flow and share repurchases. However, escalating expenses and elevated debt levels present challenges to profit margins [11].

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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]

Financial Performance - Net income attributable to RenaissanceRe common shareholders for the three months ended September 30, 2024, was $1,173,644, compared to $193,988 for the same period in 2023, reflecting a significant increase of 505.5%[14]. - Total revenues for the nine months ended September 30, 2024, reached $9,401,720, up from $5,894,318 in the same period of 2023, marking a growth of 59.8%[14]. - Net income for the nine months ended September 30, 2024, was $2,979,753, compared to $1,631,592 for the same period in 2023, representing an increase of approximately 82.5%[17]. - Comprehensive income for the three months ended September 30, 2024, was $1,633,045, compared to $416,070 for the same period in 2023, showing an increase of 292.5%[15]. - Net income available to RenaissanceRe common shareholders was $2.0 billion for the nine months ended September 30, 2024, compared to $949.1 million in the same period of 2023[249]. Premiums and Underwriting - Gross premiums written for the three months ended September 30, 2024, increased to $2,400,136 from $1,618,443 for the same period in 2023, representing a growth of 48.3%[14]. - For the three months ended September 30, 2024, the Company reported direct premiums written of $288.9 million, an increase from $222.4 million for the same period in 2023, representing a growth of 29.8%[81]. - Assumed premiums written for the nine months ended September 30, 2024, reached $8.9 billion, up from $6.4 billion in the prior year, indicating a growth of 39.4%[81]. - The combined ratio for the three months ended September 30, 2024, improved to 84.8%, compared to 100.1% in the previous period, indicating better underwriting performance[148]. - The net claims and claim expense ratio for the current accident year was 64.5%, showing a decrease from 65.8% in the previous period[148]. Investments - Total investments increased to $33,033,677 as of September 30, 2024, up from $29,216,143 at December 31, 2023, representing a growth of approximately 9.3%[13]. - The investment in equity investments at fair value rose to $133,091 from $106,766, representing an increase of about 24.5%[13]. - Net investment income for the three months ended September 30, 2024, was $423,859, compared to $329,108 for the same period in 2023, an increase of 28.7%[14]. - Total fixed maturity investments trading reached $24,287,185 as of September 30, 2024, up from $20,877,108 at the end of 2023, indicating an increase of approximately 16.5%[23]. - Net realized and unrealized gains on investments totaled $943,745 million for the nine months ended September 30, 2024, compared to a loss of $228,087 million for the same period in 2023[31]. Claims and Expenses - Net claims and claim expenses incurred for the nine months ended September 30, 2024, totaled $3,849,239, compared to $2,593,987 for the same period in 2023, reflecting a rise of 48.5%[14]. - The gross claims and claim expenses incurred for the nine months ended September 30, 2024, totaled $4.07 billion, compared to $2.84 billion in the same period of 2023, marking an increase of 43.3%[81]. - The total reserve for claims and claim expenses as of September 30, 2024, was $21.22 billion, an increase from $15.96 billion at the end of the previous year, reflecting a growth of 33.1%[88]. - The net incurred claims for the current year were $4.35 billion for the nine months ended September 30, 2024, compared to $2.89 billion for the same period in 2023, representing an increase of 50.7%[88]. - The net claims and claim expense ratio for the current accident year was 57.4% for the nine months ended September 30, 2024, compared to 55.3% in the previous year[249]. Shareholder Equity and Dividends - Shareholders' equity attributable to RenaissanceRe grew to $11,242,584, up from $9,454,958, marking an increase of around 18.9%[13]. - The ending balance of total shareholders' equity as of September 30, 2024, was $11,242,584, compared to $7,588,617 as of September 30, 2023, representing an increase of 48.2%[16]. - The Company paid $60.9 million in common share dividends during the nine months ended September 30, 2024, compared to $55.2 million in the same period of 2023[141]. - The average price per common share repurchased was $223.59, with $476.5 million remaining available for repurchase under the program as of September 30, 2024[142]. - Basic earnings per common share for the three months ended September 30, 2024, was $22.68, significantly higher than $3.81 for the same period in 2023[144]. Debt and Liabilities - Total liabilities increased to $34,652,827 from $33,451,316, reflecting a growth of approximately 3.6%[13]. - The total debt obligations as of September 30, 2024, amounted to $1,929.8 million, with senior notes totaling $1,879.8 million[99]. - The company believes it was in compliance with its debt covenants as of September 30, 2024[98]. - The company reported a net cash used in financing activities of $(911,495) for the nine months ended September 30, 2024, compared to a net cash provided of $2,104,136 in the same period of 2023[17]. - The company had debt obligations of $1.9 billion as of September 30, 2024, unchanged from the fair value reported at December 31, 2023[70].