It has been about a month since the last earnings report for RenaissanceRe (RNR). Shares have added about 5.4% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is RenaissanceRe due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
RNR Q3 Earnings Beat on Lower Expenses, Strong Underwriting Results
RenaissanceRe reported a third-quarter 2025 operating income of $15.62 per share, which outpaced the Zacks Consensus Estimate by a whopping 64.6%. The bottom line soared 52.7% year over year.
Total operating revenues of $2.9 billion tumbled 4.5% year over year. The top line missed the consensus mark by 3.7%.
The quarterly results benefited from a decline in expenses and strong underwriting performance, particularly in the Property segment. Improved net investment income also contributed to the upside. However, the upside was partly offset by lower net premiums earned across both segments and softer underwriting results in the Casualty & Specialty unit.
RenaissanceRe’s Quarterly Operational Update
Gross premiums written slipped 3.2% year over year to $2.3 billion, which fell short of our estimate of $2.5 billion.
Net premiums earned of $2.4 billion declined 5.8% year over year. The metric missed the Zacks Consensus Estimate of $2.56 billion and our estimate of $2.59 billion.
Net investment income came in at $438.4 million, which grew 3.4% year over year in the quarter under review, attributable to improved average invested assets in the fixed-maturity investment portfolios. The metric beat the consensus mark of $420 million and our estimate of $418.6 million.
Total expenses decreased 23.3% year over year to $1.7 billion, lower than our estimate of $2.6 billion. The year-over-year decline resulted from a decline in net claims and claim expenses incurred, acquisition costs and operational expenses.
RenaissanceRe reported an underwriting income of $770.2 million in the third quarter, which jumped 95.6% year over year. The combined ratio improved 1,640 basis points (bps) year over year to 68.4%.
Book value per common share was $231.23 as of Sept. 30, 2025, which improved 14.5% year over year. Annualized operating return on average common equity improved 650 bps year over year to 28.2%.
RenaissanceRe’s Segmental Update
Property Segment
The segment recorded gross premiums written of $733.3 million in the third quarter, which fell 7.3% year over year and missed our estimate of $793 million. The metric was hurt by the prior accident years' favorable development.
Net premiums earned decreased 5.8% year over year to $936.9 million. The reported figure lagged the Zacks Consensus Estimate of $1.06 billion and our estimate of $1.1 billion.
It generated an underwriting income of $791.5 million, which doubled year over year. The combined ratio improved 4,480 bps year over year to 15.5% on the back of a decline in current accident year net losses and higher prior accident year net favorable development.
Casualty & Specialty Segment
The unit’s gross premiums written dipped 1.2% year over year to $1.6 billion, lower than our estimate of $1.7 billion. The metric was hurt by reduced premiums derived from the casualty lines of business.
Net premiums earned totaled $1.5 billion, which tumbled 5.7% year over year in the quarter under review. The reported figure marginally missed the Zacks Consensus Estimate.
The segment incurred an underwriting loss of $21.3 million, wider than the prior-year quarter’s loss of $0.9 million. The combined ratio deteriorated 130 bps year over year to 101.4%.
RenaissanceRe’s Financial Position (As of Sept. 30, 2025)
RenaissanceRe exited the third quarter with cash and cash equivalents of $1.7 billion, which inched up 1.5% from the 2024-end level.
Total assets of $54.5 billion increased 7.5% from the figure at 2024-end.
Debt amounted to $2.2 billion, up 18.2% from the figure as of Dec. 31, 2024.
Total shareholders’ equity of $11.5 billion advanced 8.8% from the 2024-end level.
RenaissanceRe’s Share Repurchase Update
RenaissanceRe bought back common shares worth around $205.2 million in the third quarter. From Oct. 1, 2025, to Oct. 24, 2025, additional share repurchases of $100 million were made.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a flat trend in fresh estimates.
The consensus estimate has shifted 12.01% due to these changes.
VGM Scores
Currently, RenaissanceRe has a great Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
RenaissanceRe has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
RenaissanceRe belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, Chubb (CB), has gained 7.2% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
Chubb reported revenues of $16.14 billion in the last reported quarter, representing a year-over-year change of +7.5%. EPS of $7.49 for the same period compares with $5.72 a year ago.
Chubb is expected to post earnings of $6.31 per share for the current quarter, representing a year-over-year change of +4.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.
Chubb has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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RenaissanceRe Holdings Ltd. (RNR): Free Stock Analysis Report Chubb Limited (CB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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