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RenaissanceRe Holdings Ltd. RNR reported a second-quarter 2025 operating income of $12.29 per share, which beat the Zacks Consensus Estimate by 19.6%. However, the bottom line dipped 1% year over year.
Total operating revenues declined 4.2% year over year to $2.8 billion. The top line fell short of the consensus mark by 4.4%.
The quarterly results benefited on the back of strong underwriting performance, particularly in the Property segment, where improved combined ratios and favorable reserve development boosted profitability. Investment income growth and a declining expense level also contributed to the upside. However, the upside was partly offset by lower net premiums earned, underwriting losses in the Casualty & Specialty segment and elevated catastrophe losses.
RenaissanceRe Holdings Ltd. price-consensus-eps-surprise-chart | RenaissanceRe Holdings Ltd. Quote
Gross premiums written of $3.42 billion dipped marginally year over year but came slightly higher than our estimate of $3.41 billion.
Net premiums earned decreased 5.1% year over year to $2.4 billion. The metric missed the Zacks Consensus Estimate of $2.55 billion and our estimate of $2.52 billion.
Net investment income of $413.1 million inched up 0.6% year over year in the quarter under review on the back of an increase in average invested assets in the fixed-maturity investment portfolios. The figure surpassed the consensus mark of $408 million and our estimate of $411.2 million.
Total expenses were $1.9 billion, which declined 12% year over year and came lower than our estimate of $2.1 billion. The year-over-year decline was attributed to lower net claims and claim expenses incurred, acquisition costs and corporate expenses.
RenaissanceRe’s underwriting income climbed 25.5% year over year to $601.7 million in the second quarter. The combined ratio of 75.1% improved 600 basis points (bps) year over year.
Book value per share was $212.15 as of June 30, 2025, which increased 17.9% year over year. Annualized operating return on average common equity deteriorated 400 bps year over year to 24.2%.
The segment’s gross premiums written slipped 1.2% year over year to $1.7 billion in the second quarter due to higher catastrophe losses and rate decreases in the excess and surplus business. The metric lagged our estimate of $1.8 billion.
Net premiums earned of $868 million tumbled 11.5% year over year, lower than the Zacks Consensus Estimate of $1.06 billion and our estimate of $1.02 billion.
It generated an underwriting income of $630.2 million, which advanced 39.5% year over year. The combined ratio improved 2,650 bps year over year to 27.4% on the back of a decline in current accident year net losses and higher prior accident year net favorable development.
The unit recorded gross premiums written of $1.7 billion in the quarter under review, which inched up 1% year over year and beat our estimate of $1.6 billion. The metric was aided by higher premiums derived from the credit and specialty lines of business.
Net premiums earned dipped 1% year over year to $1.54 billion, which came marginally higher than the Zacks Consensus Estimate of $1.51 billion and our estimate of $1.49 billion.
The segment incurred an underwriting loss of $28.5 million against the prior-year quarter’s underwriting income of $27.6 million. The combined ratio deteriorated 360 bps year over year to 101.8%.
RenaissanceRe exited the second quarter with cash and cash equivalents of $1.4 billion, which fell 14.8% from the 2024-end level.
Total assets of $54.7 billion increased 7.9% from the figure at 2024-end.
Debt amounted to $2.3 billion, up 20% from the figure as of Dec. 31, 2024.
Total shareholders’ equity of $10.8 billion improved 2.1% from the 2024-end level.
RenaissanceRe bought back common shares worth $376.4 million in the second quarter. From July 1, 2025, to July 21, 2025, additional share repurchases of $70.2 million were made.
RenaissanceRe currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Of the insurance industry players that have reported second-quarter 2025 results so far, the bottom-line results of RLI Corp. RLI, W. R. Berkley Corporation WRB and The Travelers Companies, Inc. TRV beat the respective Zacks Consensus Estimate.
RLI reported second-quarter 2025 operating earnings of 84 cents per share, beating the Zacks Consensus Estimate by 12%. The bottom line, however, decreased 2.3% from the prior-year quarter. Operating revenues for the reported quarter were $441 million, up 6.9% year over year. The top line, however, missed the Zacks Consensus Estimate by 0.5%.
Gross premiums written remained flat at $562.3 million. Net investment income increased 16% year over year to $39.4 million. The investment portfolio’s total return was 2.9% in the quarter. Underwriting income of $62.2 million decreased 11.14% year over year. The combined ratio deteriorated 300 bps year over year to 84.5.
W.R. Berkley's second-quarter 2025 operating income of $1.05 per share beat the Zacks Consensus Estimate of $1.03. The bottom line increased about 1% year over year. W.R. Berkley’s net premiums written were $3.4 billion, up 9.9% year over year. Operating revenues were at $3.6 billion, up 7.9% year over year. The top line beat the consensus estimate by 1.8%.
Net investment income grew 1.9% to $379.3 million. The consolidated combined ratio (a measure of underwriting profitability) deteriorated 50 bps year over year to 92.1. Net premiums written at the Insurance segment increased 7.2% year over year to $3 billion in the quarter. The combined ratio deteriorated 30 bps to 92.1. Net premiums written in the Reinsurance & Monoline Excess segment increased 6.8% year over year to $337.7 million.
Travelers reported second-quarter 2025 core income of $6.51 per share, which beat the Zacks Consensus Estimate by 83.8%. Travelers’ total revenues increased 6.7% from the year-ago quarter to $12.1 billion. The top-line figure, however, missed the Zacks Consensus Estimate by 0.7%. Net written premiums increased 4% year over year to a record $11.5 billion.
Net investment income increased 6% year over year to $942 million. Travelers witnessed an underwriting profit of $1 billion against a loss of $65 million incurred in the year-ago quarter. The consolidated underlying combined ratio of 84.7 improved 300 bps year over year. In the Business Insurance segment, net written premiums increased 5% year over year to about $5.8 billion. The combined ratio improved 250 bps year over year to 93.6. Segment income of $813 million increased 24% year over year.
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This article originally published on Zacks Investment Research (zacks.com).
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