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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 Holdings Ltd.'s recent performance was driven by a resilient business model, despite the impact of California wildfires in Q1 2025. The company's diversified business mix and higher pricing have mitigated the effect of large catastrophes, maintaining solvency and potential for recovery. Additionally, the company's preferred stocks, such as RNR-G, offer a high-yield investment opportunity with a 6.8% yield and 9.5% capital appreciation potential, despite trading at a significant discount to peers. Furthermore, the company's recent expansion into the cat bond business with the $340M Medici UCITS Fund aligns with its broader strategy of expanding globally and diversifying capital sources.

1.c. Company Highlights

2. RenaissanceRe's Strong Q3 Earnings Beat Expectations

RenaissanceRe delivered an impressive third-quarter performance, with operating income reaching $734 million and an operating return on average common equity of 28%. Earnings per share (EPS) came in at $15.62, significantly beating analyst estimates of $9.49. Revenue growth was driven by a strong underwriting performance, with underwriting income nearly doubling to $770 million from the same period last year. The adjusted combined ratio improved to 67%, reflecting disciplined underwriting and a low level of catastrophic losses.

Publication Date: Nov -03

📋 Highlights
  • Strong Q3 Performance:: Operating income reached $734 million, with a 28% operating return on average common equity.
  • Year-to-Date Growth:: Generated $1.3 billion in operating income and delivered a 17% operating return on average equity.
  • Tangible Book Value Surge:: Increased by 10% in Q3 and 22% year-to-date, reflecting disciplined underwriting and capital efficiency.
  • Capital Returns:: Returned over $1 billion to shareholders through share repurchases, leveraging excess cash generation.
  • Property CAT Expansion:: Grew property catastrophe business by 60% over three years, achieving a 50% average margin despite anticipated 10% rate pressure in 2026.

Underwriting Performance

The company's underwriting portfolio grew, with gross premiums written of $2.3 billion and net premiums written of $2 billion. The property catastrophe business grew at the mid-year renewal, while other property lines remained flat. The Casualty and Specialty segment continued to perform well, with a strong underwriting approach reflected in the company's decision to pull back on several lines this year.

Financial Metrics and Valuation

With a Price-to-Book Ratio (P/B) of 1.04, the stock appears to be fairly valued. The company's Return on Equity (ROE) stood at 16.03%, indicating a strong ability to generate profits. The Combined Ratio, a key metric for insurance companies, was 67%, demonstrating underwriting profitability. The Dividend Yield is 0.63%, which, while not exceptionally high, is a stable source of return for investors.

Outlook and Market Dynamics

Looking ahead to 2026, RenaissanceRe expects a challenging environment, with decreasing property CAT rates and falling short-term interest rates. However, the company is confident in its ability to construct an attractive property portfolio and continue growing tangible book value per share at an attractive pace. As Kevin O'Donnell mentioned, "we anticipate a 10% rate reduction, which suggests we're relatively close to balance." The market dynamics are expected to be influenced by traditional reinsurers having more confidence and capital, making the market slightly more favorable for buyers.

Capital Management

RenaissanceRe has returned over $1 billion in capital to shareholders through repurchases this year and expects to continue generating profits and cash at an attractive rate. The company's capital management approach is focused on giving back capital in the form of buybacks, rather than accumulating it, as Robert Qutub stated, "instead of accumulating capital, we'll give back capital in the form of buybacks."

3. NewsRoom

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Fisher Asset Management LLC Trims Holdings in RenaissanceRe Holdings Ltd. $RNR

Dec -04

Source: defenseworld.net

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Nisa Investment Advisors LLC Sells 479 Shares of RenaissanceRe Holdings Ltd. $RNR

Nov -05

Source: defenseworld.net

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RNR or BRK.B: Which Is the Better Value Stock Right Now?

Oct -30

Source: zacks.com

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RenaissanceRe Holdings Ltd. (RNR) Q3 2025 Earnings Call Transcript

Oct -29

Source: seekingalpha.com

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RNR Q3 Earnings Beat on Lower Expenses, Strong Underwriting Results

Oct -29

Source: zacks.com

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Down 8.8% in 4 Weeks, Here's Why RenaissanceRe (RNR) Looks Ripe for a Turnaround

Oct -29

Source: zacks.com

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RenaissanceRe (RNR) Reports Q3 Earnings: What Key Metrics Have to Say

Oct -29

Source: zacks.com

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RenaissanceRe (RNR) Q3 Earnings Beat Estimates

Oct -28

Source: zacks.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: 7.5/10

Value: 4.8

Growth: 6.0

Quality: 7.6

Yield: 9.0

Momentum: 8.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Conduit Holdings

A-Score: 6.5/10

Value: 6.8

Growth: 10.0

Quality: 6.6

Yield: 9.0

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
RenaissanceRe

A-Score: 6.0/10

Value: 8.1

Growth: 8.6

Quality: 7.4

Yield: 1.0

Momentum: 2.5

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
RGA

A-Score: 5.8/10

Value: 7.4

Growth: 6.4

Quality: 5.5

Yield: 4.0

Momentum: 2.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Everest Group

A-Score: 5.6/10

Value: 6.4

Growth: 6.6

Quality: 5.4

Yield: 4.0

Momentum: 2.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Brookfield Reinsurance

A-Score: 4.9/10

Value: 8.2

Growth: 6.2

Quality: 6.4

Yield: 0.0

Momentum: 5.0

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

264.8$

Current Price

264.8$

Potential

-0.00%

Expected Cash-Flows