RenaissanceRe (RNR) Posts Q4 EPS Beat as Underwriting Income Triples

RenaissanceRe Holdings Ltd. (NYSE:RNR) is one of the best affordable long term stocks to buy according to hedge funds. On February 3, RenaissanceRe Holdings Ltd. (NYSE:RNR) announced Q4 2025 financial results, in which it reported operating earnings of $13.34 per share, beating analyst consensus estimates by roughly 28%. On a GAAP basis, net income per diluted common share was $16.75.

Underwriting income rose to $669 million in Q4 2025, up from $209 million a year earlier, as the combined ratio improved to 71.4% from 91.7%. And this was because Hurricane Melissa contributed only 10.6% to the property segment’s loss ratio, whereas large loss events had added 47.3 percentage points in Q4 2024.

The overall combined ratio improved to 71.4%, beating estimates of 86-91.3%, due to these lower catastrophe impacts and favorable reserve development. President and CEO, Kevin J. O’Donnell noted that the company’s “Three Drivers of Profit” collectively contributed 15 points of annual return. This, O’Donnell said, demonstrates their strategy to “absorb volatility from large loss events.”

Annual operating income reached $1.9 billion despite what CEO Kevin O’Donnell described as a “$786 million net negative impact from large events” throughout the year. O’Donnell attributed this resilience to the diversified “Three Drivers” model. The strategy allowed the company to maintain an 18.2% operating return on average common equity, O’Donnell said.

RenaissanceRe Holdings Ltd. (NYSE:RNR) is a Bermuda-based global provider of reinsurance and insurance solutions. The company specializes in catastrophe reinsurance and specialty risk coverage, offering property, casualty, and specialty reinsurance products to clients worldwide.

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Disclosure: None. This article is originally published at Insider Monkey.