RenaissanceRe initiated with a Buy at Citi

Citi analyst Charlie Lederer initiated coverage of RenaissanceRe with a Buy rating and $251 price target. The analyst says the reinsurance group is the firm’s second favorite insurance sub-sector along with personal lines, behind brokers, though it acknowledges “crowding risk.” The firm likes RenaissanceRe for its greater leverage to property catastrophe reinsurance pricing and believes upside from Validus is being discounted in the aftermath of disappointing Q3 growth results.