RenaissanceRe (NYSE:RNR) Exceeds Q4 CY2025 Expectations

Reinsurance provider RenaissanceRe (NYSE:RNR) reported revenue ahead of Wall Streets expectations in Q4 CY2025, with sales up 29.6% year on year to $2.97 billion. Its non-GAAP profit of $13.34 per share was 28.2% above analysts’ consensus estimates.

Is now the time to buy RenaissanceRe? Find out by accessing our full research report, it’s free.

Company Overview

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.

Revenue Growth

Insurers earn revenue three ways. The core insurance business itself, often called underwriting and represented in the income statement as premiums earned, is one way. Investment income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities is the second way. Fees from various sources such as policy administration, annuities, or other value-added services is the third. Over the last five years, RenaissanceRe grew its revenue at an incredible 20% compounded annual growth rate. Its growth beat the average insurance company and shows its offerings resonate with customers, a helpful starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. RenaissanceRe’s annualized revenue growth of 18.6% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.

This quarter, RenaissanceRe reported robust year-on-year revenue growth of 29.6%, and its $2.97 billion of revenue topped Wall Street estimates by 1.4%.

Net premiums earned made up 88.6% of the company’s total revenue during the last five years, meaning RenaissanceRe barely relies on non-insurance activities to drive its overall growth.

While insurers generate revenue from multiple sources, investors view net premiums earned as the cornerstone - its direct link to core operations stands in sharp contrast to the unpredictability of investment returns and fees.

The 1999 book Gorilla Game predicted Microsoft and Apple would dominate tech before it happened. Its thesis? Identify the platform winners early. Today, enterprise software companies embedding generative AI are becoming the new gorillas. a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.

Book Value Per Share (BVPS)

Insurance companies are balance sheet businesses, collecting premiums upfront and paying out claims over time. The float–premiums collected but not yet paid out–are invested, creating an asset base supported by a liability structure. Book value per share (BVPS) captures this dynamic by measuring these assets (investment portfolio, cash, reinsurance recoverables) less liabilities (claim reserves, debt, future policy benefits). BVPS is essentially the residual value for shareholders.

We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality. While other (and more commonly known) per-share metrics like EPS can sometimes be lumpy due to reserve releases or one-time items and can be managed or skewed while still following accounting rules, BVPS reflects long-term capital growth and is harder to manipulate.

RenaissanceRe’s BVPS grew at an excellent 12.3% annual clip over the last five years. BVPS growth has also accelerated recently, growing by 22.3% annually over the last two years from $165.20 to $247 per share.

Key Takeaways from RenaissanceRe’s Q4 Results

It was good to see RenaissanceRe beat analysts’ EPS expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street’s estimates. On the other hand, its net premiums earned missed. Overall, we think this was a decent quarter with some key metrics above expectations. The stock remained flat at $285.95 immediately after reporting.

RenaissanceRe had an encouraging quarter, but one earnings result doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).