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1. Company Snapshot

1.a. Company Description

RenaissanceRe 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.

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1.b. Last Insights on RNR

RenaissanceRe's recent momentum is driven by robust Q4 earnings, which surpassed estimates due to lower claims costs and strong investment results. The company's diversified earnings profile, supported by underwriting, fee income, and investments, has mitigated industry headwinds. Additionally, the 31st consecutive annual dividend increase and $750M share buyback expansion underscore management's confidence in investment income and underwriting, bolstering shareholder value.

1.c. Company Highlights

2. RenaissanceRe Holdings Delivers Strong Results, Positioning for Continued Growth

The company reported a strong financial performance in 2025, driven by its three drivers of profit: underwriting, fee income, and investment income. The underwriting portfolio generated $1.3 billion in income, with a solid current year performance despite large Property and Specialty events. Earnings per share (EPS) came in at $13.34, beating analyst estimates of $10.59. Revenue growth is expected to be around 0.7% next year. The operating expense ratio is expected to average between 5% and 5.5% in 2026.

Publication Date: Feb -17

📋 Highlights
  • Underwriting Income: Generated $1.3 billion in 2025 despite large Property and Specialty events.
  • Fee Income: Reached $329 million in 2025 via efficient capital deployment in Property and Casualty & Specialty.
  • Operating Expense Ratio: Expected to average 5–5.5% in 2026, reflecting investments and year-end bonuses.
  • Gold Unrealized Gain: $400 million gain from mark-to-market futures contracts hedging underwriting and interest rate risks.

Underwriting Performance

The underwriting portfolio's performance was driven by disciplined reserving and historical underwriting decisions. The company's Casualty & Specialty segment is expected to have a combined ratio in the high 90s, with a cautious reserving philosophy. The Property CAT book is expected to see a reduction in gross premiums written in Q1 due to rate decreases, but modeled margin remains well above the cost of capital.

Valuation and Dividend Yield

With a Price-to-Book Ratio (P/B) of 1.16, the company's valuation appears reasonable. The Dividend Yield is 0.53%, which is relatively modest. Return on Equity (ROE) is 24.24%, indicating strong profitability. The company's financial performance and guidance suggest a stable outlook, with each of its three drivers of profit expected to remain robust sources of income in 2026.

Growth Opportunities and Risk Management

RenaissanceRe is well-positioned to capitalize on growing demand for its Property and Casualty products, particularly in the data center space. The company is prioritizing Casualty cedents who focus on claims handling practices and is using artificial intelligence technology to improve its underwriting and claims handling processes. The company's exposure to riot and civil commotion coverage is not materially different than in 2025, with tight terms and conditions and retentions that keep it insulated from attritional loss.

Guidance and Outlook

The company expects its management fee income to remain around the same level in 2026. The tax credits will have a significant impact on the expense ratio, increasing to 75% next quarter and 90% in 2027. The company's investment analysis utilizes AI to enhance judgment, not just increase efficiency. The current supply-demand dynamic in the Property CAT market is being closely monitored, and the company is prepared to adapt to changing market conditions.

3. NewsRoom

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RNR Boosts Dividend, Expands Buyback in Shareholder-Friendly Push

Feb -12

Source: zacks.com

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RenaissanceRe Holdings Ltd. Announces Thirty-First Consecutive Annual Increase in Dividend; Renews Share Repurchase Program

Feb -11

Source: businesswire.com

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RenaissanceRe Q4 Earnings Call Highlights

Feb -07

Source: defenseworld.net

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RenaissanceRe Holdings Ltd. (RNR) Q4 2025 Earnings Call Transcript

Feb -04

Source: seekingalpha.com

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RNR Q4 Earnings Beat on Lower Claims Costs, Strong Investment Results

Feb -04

Source: zacks.com

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Here's What Key Metrics Tell Us About RenaissanceRe (RNR) Q4 Earnings

Feb -04

Source: zacks.com

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RenaissanceRe (RNR) Beats Q4 Earnings Estimates

Feb -04

Source: zacks.com

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RenaissanceRe Reports $2.6 Billion of Annual Net Income Available to Common Shareholders and $1.9 Billion of Operating Income Available to Common Shareholders in 2025.

Feb -03

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.91%)

6. Segments

Casualty and Specialty

Expected Growth: 4.5%

RenaissanceRe Holdings Ltd.'s Casualty and Specialty segment growth of 4.5% is driven by increasing demand for specialty insurance products, expansion into new markets, and a favorable pricing environment. Additionally, the company's strong underwriting discipline, diversified portfolio, and effective risk management strategies contribute to its growth momentum.

Property

Expected Growth: 5.5%

RenaissanceRe Holdings Ltd.'s 5.5% growth is driven by increasing demand for reinsurance products, expansion into new markets, and a strong capital position. Additionally, the company's diversified portfolio, disciplined underwriting, and effective risk management practices contribute to its growth. Furthermore, the growing need for catastrophe protection and the company's expertise in this area also support its growth momentum.

7. Detailed Products

Property Catastrophe Reinsurance

RenaissanceRe Holdings Ltd. offers property catastrophe reinsurance to protect insurers from large losses due to natural catastrophes such as hurricanes, earthquakes, and floods.

Casualty Reinsurance

RenaissanceRe Holdings Ltd. provides casualty reinsurance to help insurers manage their liability risks, including auto, general liability, and workers' compensation.

Specialty Reinsurance

RenaissanceRe Holdings Ltd. offers specialty reinsurance for unique or hard-to-place risks, including aviation, marine, and energy-related risks.

Insurance-Linked Securities (ILS)

RenaissanceRe Holdings Ltd. issues ILS, which allow investors to invest in reinsurance risk, providing an alternative source of capital for the reinsurance market.

Joint Ventures and Partnerships

RenaissanceRe Holdings Ltd. forms joint ventures and partnerships with other companies to develop new reinsurance products and expand their reach into new markets.

8. RenaissanceRe Holdings Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

RenaissanceRe Holdings Ltd. operates in the reinsurance industry, which has a moderate threat of substitutes. While there are alternative risk management strategies, reinsurance remains a crucial component of the industry.

Bargaining Power Of Customers

RenaissanceRe Holdings Ltd. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand reputation and specialized products limit customers' ability to negotiate prices.

Bargaining Power Of Suppliers

RenaissanceRe Holdings Ltd. has a diversified supplier base, which reduces dependence on individual suppliers. The company's strong financial position and long-term relationships with suppliers also limit suppliers' bargaining power.

Threat Of New Entrants

The reinsurance industry has significant barriers to entry, including high capital requirements, regulatory hurdles, and the need for specialized expertise. These barriers limit the threat of new entrants.

Intensity Of Rivalry

The reinsurance industry is highly competitive, with many established players competing for market share. RenaissanceRe Holdings Ltd. faces intense competition from other reinsurers, which can lead to downward pressure on prices and profit margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 17.16%
Debt Cost 3.95%
Equity Weight 82.84%
Equity Cost 5.50%
WACC 5.23%
Leverage 20.72%

11. Quality Control: RenaissanceRe Holdings Ltd. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Main Street Capital

A-Score: 7.1/10

Value: 4.6

Growth: 5.9

Quality: 6.7

Yield: 9.0

Momentum: 7.0

Volatility: 9.3

1-Year Total Return ->

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Conduit Holdings

A-Score: 6.7/10

Value: 6.9

Growth: 10.0

Quality: 6.6

Yield: 9.0

Momentum: 1.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
RenaissanceRe

A-Score: 6.4/10

Value: 8.4

Growth: 8.6

Quality: 8.0

Yield: 1.0

Momentum: 3.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
RGA

A-Score: 5.8/10

Value: 7.3

Growth: 6.2

Quality: 5.4

Yield: 4.0

Momentum: 3.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Everest Group

A-Score: 5.6/10

Value: 6.4

Growth: 6.4

Quality: 4.8

Yield: 5.0

Momentum: 2.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Brookfield Reinsurance

A-Score: 5.2/10

Value: 8.9

Growth: 6.2

Quality: 6.6

Yield: 0.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

301.17$

Current Price

301.18$

Potential

-0.00%

Expected Cash-Flows