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RenaissanceRe Holdings Ltd. RNR reported fourth-quarter 2025 operating income of $13.34 per share, which surpassed the Zacks Consensus Estimate by 26%. The bottom line surged 65.5% year over year.
Total operating revenues declined 6% year over year to $2.8 billion. The top line missed the consensus mark by 5.7%.
The quarterly results were aided by a rise in net investment income and strong underwriting results. Total expenses dropped year over year, thanks to declines in claims expenses, acquisition and operational costs. However, the upside is partly offset by lower premiums in general casualty and specialty lines, and the Property segment.
RenaissanceRe Holdings Ltd. price-consensus-eps-surprise-chart | RenaissanceRe Holdings Ltd. Quote
Gross premiums written of $1.8 billion tumbled 4.1% year over year and missed our estimate of $1.9 billion.
Net premiums earned fell 7.6% year over year to $2.3 billion. The metric fell short of the Zacks Consensus Estimate and our estimate of $2.5 billion.
Net investment income of $446.7 million advanced 4.2% year over year in the quarter under review on the back of increased average invested assets. The metric beat the consensus mark of $439 million and our estimate of $439.2 million.
Total expenses came in at $1.7 billion, which dropped 28.1% year over year and came lower than our estimate of $2.3 billion. The year-over-year decline resulted from a decline in net claims and claim expenses incurred, acquisition costs and operational expenses.
RenaissanceRe’s underwriting income increased more than threefold year over year to $668.8 million in the fourth quarter. The combined ratio of 71.4% improved 2,030 basis points (bps) year over year.
Book value per common share was $247.00 as of Dec. 31, 2025, up 26.2% year over year. Annualized operating return on average common equity improved 630 bps year over year to 22.3%.
The segment’s gross premiums written declined 11.3% year over year to $346.1 million in the fourth quarter, lower than our estimate of $381.9 million.
Net premiums earned of $918.8 million slid 2.1% year over year. The reported figure missed the Zacks Consensus Estimate and our estimate of $1 billion.
It generated an underwriting income of $718.9 million, which increased nearly threefold year over year. The combined ratio improved 4,980 bps year over year to 21.8%.
The unit recorded gross premiums written of $1.5 billion in the quarter under review, which decreased 2.3% year over year and came lower than our estimate of $1.6 billion. The metric was hurt by reduced premiums derived from the general casualty and specialty lines of business.
Net premiums earned tumbled 10.9% year over year to $1.42 billion. The reported figure marginally missed the Zacks Consensus Estimate and our estimate of $1.5 billion.
The segment incurred an underwriting loss of $50.1 million, narrower than the prior-year quarter’s loss of $58.3 million. The combined ratio improved 20 bps year over year to 103.5%.
RenaissanceRe exited the fourth quarter with cash and cash equivalents of $1.7 billion, which improved 3.3% from the 2024-end level.
Total assets of $53.8 billion increased 6.1% from the figure at 2024-end.
Debt amounted to $2.3 billion, up 23.5% from the figure as of Dec. 31, 2024.
Total shareholders’ equity of $11.6 billion rose 9.8% from the 2024-end level.
RenaissanceRe bought back common shares worth around $650.5 million in the fourth quarter. From Jan. 1, 2026, to Jan. 30, 2026, additional share repurchases of $113.4 million were made.
Gross premiums written inched up marginally year over year to $11.7 billion in 2025. Net premiums earned of $9.9 billion dipped 1.9% year over year.
Operating income came in at $39.10 per share, down 9% year over year.
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 fourth-quarter 2025 results so far, the bottom-line results of The Hartford Insurance Group, Inc. HIG, AXIS Capital Holdings Limited AXS and Selective Insurance Group, Inc. SIGI beat the respective Zacks Consensus Estimate.
Hartford Insurance reported fourth-quarter 2025 adjusted operating earnings of $4.06 per share, which surpassed the Zacks Consensus Estimate by 27.9%. The bottom line climbed 38% year over year. HIG's operating revenues rose 8.9% year over year to $5.2 billion. The top line beat the consensus mark by 1.4%. Earned premiums amounted to $6.1 billion, which advanced 5.7% year over year. Net investment income increased 16.5% year over year to $832 million. Pre-tax income climbed 31.6% year over year to $1.4 billion.
Revenues in the Business Insurance segment totaled $4.1 billion, reflecting a 9.5% jump, and beat the Zacks Consensus Estimate by 1.4%. Core earnings of $915 million improved 37.6% year over year. The combined ratio improved 380 basis points year over year to 83.6%. In the Personal Insurance unit, revenues amounted to $1 billion, which beat the consensus estimate by 2.7%. This segment generated core earnings of $214 million, reflecting an increase of approximately 38% year over year.
AXIS Capital reported fourth-quarter 2025 operating income of $3.25 per share, which outpaced the Zacks Consensus Estimate by 9.4% and rose 9.4% year over year. Total operating revenues of $1.7 billion beat the consensus estimate by 5.2%. The top line rose nearly 9% year over year.
Net premiums written rose 13% to $1.4 billion, with an increase of 14% in the Insurance segment and growth of 5% in the Reinsurance segment. Net investment income decreased 4.5% year over year to $187 million. AXIS Capital’s underwriting income of $184 million increased 42% year over year. The combined ratio improved to 90.4 in the quarter from 94.2 a year ago.
Selective Insurance reported fourth-quarter 2025 operating income of $2.57 per share, which marginally beat the Zacks Consensus Estimate by 0.3%. The bottom line increased 59% year over year. Total revenues of $1.4 billion increased 8.3% from the year-ago quarter’s level. The top line marginally exceeded the Zacks Consensus Estimate by 0.1%. On a year-over-year basis, net premiums written (NPW) increased 4% to $1.1 billion. Net investment income increased 17% year over year to $114 million.
Underwriting income of $76 million more than quadrupled year over year. The combined ratio improved 470 basis points year over year to 93.8 from 98.5. Standard Commercial Lines’ NPW was up 5% year over year to $875.6 million. The combined ratio improved significantly to 92.9 from 100.2 a year ago, reflecting a 730-basis-point improvement. Standard Personal Lines’ NPW declined 8% year over year to $95.5 million. Policy count fell. The combined ratio was 103.0, worsening 1,130 basis points from 91.7 a year ago. Excess & Surplus Lines’ NPW increased 4% year over year to $158.4 million.
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This article originally published on Zacks Investment Research (zacks.com).
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