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Renaissancere Holdings Ltd (RNR)
NYSE:RNR
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Renaissancere Holdings
(NYSE:RNR)
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Rating:85Outperform
Price Target:
$285.00
▲(17.53% Upside)
Renaissancere Holdings receives a strong overall score due to its robust financial performance and positive earnings call highlights. The company's undervaluation adds to its attractiveness, although technical indicators suggest a neutral market sentiment. The absence of significant corporate events further consolidates the focus on its financial and operational strengths.
Positive Factors
Strong Revenue Growth
The company's robust revenue growth indicates effective market penetration and demand for its reinsurance and insurance solutions, supporting long-term business expansion.
High Gross Profit Margins
High gross profit margins reflect efficient cost management and pricing power, enhancing profitability and competitive positioning in the market.
Strong Balance Sheet
A debt-free balance sheet enhances financial resilience, allowing for strategic investments and growth opportunities without the burden of interest obligations.
Negative Factors
Decline in Net Income
A decline in net income can pressure profit margins and may indicate challenges in cost control or revenue generation, affecting overall financial health.
Increased Operating Expenses
Rising operating expenses can strain profitability if not matched by revenue growth, potentially impacting long-term financial performance.
Bermuda Corporate Income Tax Impact
The introduction of a new corporate tax in Bermuda increases tax liabilities, potentially reducing net income and affecting cash flow and investment capacity.
Renaissancere Holdings (RNR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.44B
Dividend Yield0.65%
Average Volume (3M)390.62K
Price to Earnings (P/E)6.2
Beta (1Y)0.17
Revenue Growth23.19%
EPS Growth-22.42%
CountryUS
Employees945
SectorFinancial
Sector Strength70
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)12.29
Shares Outstanding47,066,216
10 Day Avg. Volume548,568
30 Day Avg. Volume390,615
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.88
Enterprise Value/Revenue1.68
Enterprise Value/Gross Profit25.20
Enterprise Value/Ebitda6.61
Forecast
1Y Price Target
$268.17Price Target Upside10.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
Renaissancere Holdings Business Overview & Revenue Model
Company DescriptionRenaissanceRe Holdings Ltd. provides reinsurance and insurance products in the United States and internationally. The company operates through Property, and Casualty and Specialty segments. The Property segment writes property catastrophe excess of loss reinsurance and excess of loss retrocessional reinsurance to insure insurance and reinsurance companies against natural and man-made catastrophes, including hurricanes, earthquakes, typhoons, and tsunamis, as well as claims arising from other natural and man-made catastrophes comprising winter storms, freezes, floods, fires, windstorms, tornadoes, explosions, and acts of terrorism; and other property class of products, such as proportional reinsurance, property per risk, property reinsurance, binding facilities, and regional U.S. multi-line reinsurance. The Casualty and Specialty segment writes various classes of products, such as directors and officers, medical malpractice, and professional indemnity; automobile and employer's liability, casualty clash, umbrella or excess casualty, workers' compensation, and general liability; financial and mortgage guaranty, political risk, surety, and trade credit; and accident and health, agriculture, aviation, cyber, energy, marine, satellite, and terrorism. The company distributes its products and services primarily through intermediaries. RenaissanceRe Holdings Ltd. was founded in 1993 and is headquartered in Pembroke, Bermuda.
How the Company Makes MoneyRenaissanceRe generates revenue primarily through its reinsurance and insurance underwriting activities. The company earns premiums from clients for the coverage it provides, which are then invested to yield investment income. Key revenue streams include property catastrophe reinsurance, where RenaissanceRe provides coverage against large-scale natural disasters, and specialty insurance products that cater to niche markets. The company's investment portfolio, consisting of fixed income securities, equities, and other financial instruments, also contributes significantly to its earnings. Additionally, RenaissanceRe engages in strategic partnerships with other insurance entities and capital markets, enhancing its capacity to underwrite risks and tap into new market opportunities, which further bolsters its revenue generation capabilities.
Renaissancere Holdings Earnings Call Summary
Earnings Call Date:Jul 23, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Positive
The earnings call demonstrated strong financial performance with significant growth in book value, return on equity, and underwriting income. Despite challenges in the casualty line and increased operating expenses, the overall sentiment is positive due to robust fee income recovery, strategic share repurchases, and effective investment portfolio management.Q2-2025 Updates
Positive Updates
Growth in Tangible Book Value
RenaissanceRe grew tangible book value per share by 10% year-to-date and over 20% over the past 12 months.
Strong Operating Return on Equity
The company achieved a 24% operating return on equity this quarter.
Underwriting Income Surge
Underwriting income reached $602 million, up 26% from the previous year.
Record Property Cat Portfolio
Constructed the largest and one of the most profitable net retained property cat portfolios.
Effective Fee Income Recovery
Fee income was $95 million for the quarter, up 13%, with management fees recovering from previous losses.
Robust Share Repurchase Program
Repurchased $376 million in shares this quarter, totaling $1.5 billion since April 2024.
Positive Investment Portfolio Performance
Retained net investment income was $286 million, supported by strategic allocation adjustments.
Negative Updates
Casualty Line Caution
Reduced general liability exposure by 30% due to cautious market conditions, despite rate increases.
Increased Operating Expenses
Operating expense ratio rose to 5.2%, reflecting continued investment in the business.
Bermuda Corporate Income Tax Impact
The new 15% Bermuda corporate income tax resulted in a $177 million tax expense for the quarter.
Company Guidance
During the RenaissanceRe Second Quarter 2025 Earnings Call, the company reported robust financial performance, highlighted by a 24% operating return on equity and a 10% year-to-date growth in tangible book value per share. The firm emphasized its strategic focus on underwriting, investments, and fee income as key profit drivers. RenaissanceRe's underwriting portfolio saw a significant expansion, with gross premiums written at $3.4 billion, and a 13% increase in U.S. property catastrophe premiums due to favorable renewal terms. The company also reported $602 million in underwriting income and $286 million in net investment income. Fee income rebounded to $95 million, recovering from prior quarter losses, and total fee income since 2023 reached nearly $700 million. The firm's financial strategy included substantial share repurchases totaling $1.5 billion since April 2024, underscoring its confidence in sustaining strong earnings and shareholder value.Renaissancere Holdings Financial Statement Overview
Summary
Renaissancere Holdings demonstrates robust financial health with strong revenue growth, high profitability, and effective cash management. The balance sheet is solid with no current debt and a high equity ratio, ensuring financial flexibility and stability.Income Statement
Renaissancere Holdings shows strong revenue growth with a TTM revenue of $12.33 billion, up from $11.65 billion annually. Gross profit margins are exceptionally high, indicating strong cost management. However, net income has declined slightly, impacting net profit margins. EBIT margins remain robust, supporting operational efficiency.88
Very Positive
Balance Sheet
The company maintains a strong balance sheet with no current debt, improving financial flexibility. A high equity ratio and consistent return on equity underscore stability and shareholder value creation. Strong cash positions relative to liabilities enhance resilience against market fluctuations.92
Very Positive
Cash Flow
Operating cash flow remains strong, indicating healthy core business operations. Although free cash flow decreased from the previous period, it remains positive, supporting sustainable growth. The company effectively converts net income into cash, reflecting solid cash management practices.85
Very Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.65B | 9.09B | 5.05B | 5.27B | 5.16B |
| Gross Profit | 3.67B | 9.09B | 5.12B | 174.46M | 5.16B |
| EBITDA | 3.01B | 3.28B | -1.20B | -126.27M | 1.07B |
| Net Income | 1.87B | 2.53B | -1.06B | -40.88M | 762.40M |
Balance Sheet | |||||
| Total Assets | 50.71B | 49.01B | 36.55B | 33.96B | 30.82B |
| Cash, Cash Equivalents and Short-Term Investments | 6.21B | 6.48B | 5.86B | 7.16B | 6.73B |
| Total Debt | 1.89B | 1.96B | 1.17B | 1.17B | 1.14B |
| Total Liabilities | 33.16B | 33.45B | 26.69B | 23.78B | 19.87B |
| Stockholders Equity | 10.57B | 9.45B | 5.33B | 6.62B | 7.56B |
Cash Flow | |||||
| Free Cash Flow | 4.16B | 1.91B | 1.12B | 2.05B | 4.30B |
| Operating Cash Flow | 4.16B | 1.91B | 1.60B | 1.23B | 1.99B |
| Investing Cash Flow | -3.06B | -3.82B | -3.02B | -816.30M | -2.30B |
| Financing Cash Flow | -1.29B | 2.59B | 725.34M | -302.46M | 665.21M |
Renaissancere Holdings Technical Analysis
Positive
242.49
Price Trends
241.47
Positive
242.40
Positive
243.17
Negative
Market Momentum
-0.05
Positive
50.57
Neutral
51.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNR, the sentiment is Positive. The current price of 242.49 is above the 20-day moving average (MA) of 242.38, above the 50-day MA of 241.47, and below the 200-day MA of 243.17, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 50.57 is Neutral, neither overbought nor oversold. The STOCH value of 51.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RNR.
Renaissancere Holdings Risk Analysis
Renaissancere Holdings disclosed 35 risk factors in its most recent earnings report. Renaissancere Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Renaissancere Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | $11.44B | 6.20 | 18.75% | 0.65% | 23.19% | -22.42% | |
82 Outperform | 2.43B | 6.46 | 14.87% | ― | 28.86% | -11.22% | |
71 Outperform | 14.04B | 17.47 | 5.37% | 2.39% | 10.40% | -71.67% | |
66 Neutral | 444.58M | 11.87 | 6.73% | ― | 2.18% | -41.11% | |
66 Neutral | 12.34B | 16.23 | 6.63% | 1.93% | 1.53% | -10.27% | |
64 Neutral | 2.05B | 19.53 | 8.06% | ― | -4.56% | -55.48% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
RNR
Renaissancere Holdings
242.49
-18.48
-7.08%
EG
Everest Group
334.83
-39.82
-10.63%
GLRE
Greenlight Capital Re
13.00
-0.96
-6.88%
RGA
Reinsurance Group
186.76
-28.78
-13.35%
SPNT
SiriusPoint
17.54
3.46
24.57%
HG
Hamilton Insurance Group, Ltd. Class B
24.39
5.80
31.20%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.