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It has been about a month since the last earnings report for RenaissanceRe (RNR). Shares have added about 0% 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? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for RenaissanceRe Holdings Ltd. before we dive into how investors and analysts have reacted as of late.
RNR Q4 Earnings Beat on Lower Claims Costs, Strong Investment Results
RenaissanceRe 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.
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.
It turns out, estimates revision have trended downward during the past month.
At this time, RenaissanceRe has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock has a grade of A on the value side, putting it in the top quintile 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.
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, RenaissanceRe has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
RenaissanceRe is part of the Zacks Insurance - Property and Casualty industry. Over the past month, RLI Corp. (RLI), a stock from the same industry, has gained 2%. The company reported its results for the quarter ended December 2025 more than a month ago.
RLI Corp. reported revenues of $448.73 million in the last reported quarter, representing a year-over-year change of +2.9%. EPS of $0.94 for the same period compares with $0.41 a year ago.
For the current quarter, RLI Corp. is expected to post earnings of $0.85 per share, indicating a change of -7.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for RLI Corp.. Also, the stock has a VGM Score of C.
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This article originally published on Zacks Investment Research (zacks.com).
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