RenaissanceRe upgraded to Outperform from Market Perform at BMO Capital

BMO Capital analyst Michael Zaremski upgraded RenaissanceRe to Outperform from Market Perform with a price target of $216, up from $198. The analyst sees earnings upside from higher than expected expense synergies following RenaissanceRe’s recent acquisition of AIG’s reinsurance arm and recent the Florida tort reforms lowering inflation levels insurers bear post-hurricanes. Population and wage growth trends to higher catastrophe-prone geographies such as Florida and Texas underpin estimated near double-digit demand increases for property reinsurance, which benefits the company, the analyst tells investors in a research note.