Reinsurance Stocks Q3 Teardown: RenaissanceRe (NYSE:RNR) Vs The Rest

Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at RenaissanceRe (NYSE:RNR) and its peers.

This is a cyclical industry, and the sector benefits when there is 'hard market', characterized by strong premium rate increases that outpace loss and cost inflation, resulting in robust underwriting margins. The opposite is true in a 'soft market'. Interest rates also matter, as they determine the yields earned on fixed-income portfolios. The primary headwind remains the immense and concentrated exposure to large-scale catastrophe losses, as the growing impact of climate change challenges traditional risk models and creates significant earnings volatility. Additionally, they face the risk of adverse prior-year reserve development, where claims prove more costly than anticipated, while the eventual influx of new capital from alternative sources threatens to soften the market and compress future returns.

The 6 reinsurance stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.5%.

Thankfully, share prices of the companies have been resilient as they are up 5.6% on average since the latest earnings results.

RenaissanceRe (NYSE:RNR)

Born in Bermuda after the devastating Hurricane Andrew created a crisis in the catastrophe insurance market, RenaissanceRe (NYSE:RNR) provides property, casualty, and specialty reinsurance and insurance solutions to customers worldwide, primarily through intermediaries.

RenaissanceRe reported revenues of $3.20 billion, down 19.5% year on year. This print exceeded analysts’ expectations by 9.7%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS and revenue estimates.

RenaissanceRe delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 16.5% since reporting and currently trades at $269.90.

Is now the time to buy RenaissanceRe? Access our full analysis of the earnings results here, it’s free.

Best Q3: Hamilton Insurance Group (NYSE:HG)

Founded in 2013 and operating through three distinct underwriting platforms across four countries, Hamilton Insurance Group (NYSE:HG) operates global specialty insurance and reinsurance platforms across Lloyd's, Ireland, Bermuda, and the United States.

Hamilton Insurance Group reported revenues of $667.7 million, up 30.2% year on year, outperforming analysts’ expectations by 10.3%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

Hamilton Insurance Group delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 11.3% since reporting. It currently trades at $26.25.

Is now the time to buy Hamilton Insurance Group? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Everest Group (NYSE:EG)

Rebranded from Everest Re in 2023 to reflect its evolution beyond just reinsurance, Everest Group (NYSE:EG) underwrites property and casualty reinsurance and insurance worldwide, serving insurance companies, corporations, and other clients across six continents.

Everest Group reported revenues of $4.32 billion, flat year on year, falling short of analysts’ expectations by 2.5%. It was a disappointing quarter as it posted a significant miss of analysts’ net premiums earned and EPS estimates.

As expected, the stock is down 7.8% since the results and currently trades at $317.03.

Read our full analysis of Everest Group’s results here.

Reinsurance Group of America (NYSE:RGA)

Operating behind the scenes of the insurance industry since 1973, Reinsurance Group of America (NYSE:RGA) provides life and health reinsurance services to insurance companies, helping them manage risk and meet regulatory requirements.

Reinsurance Group of America reported revenues of $6.25 billion, up 9.5% year on year. This number beat analysts’ expectations by 3.2%. Taking a step back, it was a mixed quarter as it also logged an impressive beat of analysts’ book value per share estimates but a significant miss of analysts’ net premiums earned estimates.

The stock is up 4.9% since reporting and currently trades at $198.24.

Read our full, actionable report on Reinsurance Group of America here, it’s free.

AXIS Capital (NYSE:AXS)

Founded in the aftermath of the 9/11 attacks when insurance capacity was scarce, AXIS Capital Holdings Limited (NYSE:AXS) is a global specialty insurer and reinsurer that provides coverage for complex risks across property, liability, professional lines, cyber, and other specialty markets.

AXIS Capital reported revenues of $1.64 billion, up 4.1% year on year. This result met analysts’ expectations. Overall, it was a strong quarter as it also produced a beat of analysts’ EPS estimates and an impressive beat of analysts’ book value per share estimates.

The stock is up 12.9% since reporting and currently trades at $99.67.

Read our full, actionable report on AXIS Capital here, it’s free.

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