Back to top

Bull of the Day

Zacks Equity Research

RenaissanceRe Holdings, Ltd. (RNR)

RNR

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

We are upgrading our recommendation on RenaissanceRe Holdings, Ltd. (RNR) to Outperform on the heels of the positive trend in premiums growth, increase in reinsurance capacity through the formation of Timicuan, stable ratings and regular dividend hikes. RenaissanceRe's first quarter earnings surpassed the Zacks Consensus Estimate owing to higher underwriting income arising from lack of catastrophic events in the quarter.

While premiums and investment income exhibited growth, expenses also declined substantially, thereby boosting the bottom line. Moreover, improved financial leverage, cash balance and ROCE boosted the financial position. Additionally, enhanced operating leverage due to strategic divestitures along with efficient capital deployment are the other positives.

Our six-month target price of $91.00 per share equates to about 9.8x our earnings estimate for 2012. Combined with the $1.08 per share annual dividend, this target price implies an expected total return of 20.8% over that period. This is consistent with our Outperform recommendation.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%