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RenaissanceRe Forms Special Purpose Insurer in Bermuda
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RenaissanceRe Holdings Ltd’s (RNR - Free Report) reinsurance subsidiary “Renaissance Reinsurance Ltd.” recently announced the formation of Fibonacci Reinsurance Ltd, which is a Special Purpose Insurer based in Bermuda.
It is worth noting that the strength of RenaissanceRe lies in its both organic and inorganic growth initiatives. Its reinsurance business has been delivering prudent performance despite being exposed to catastrophe losses. Along with this, many other similar tailwinds have boosted shareholders’ confidence, which is evident from the favorable share price movement of RenaissanceRe’s stock. Over the last six months, shares have gained 18.4%, more than Zacks categorized Property & Casualty Insurance industry’s gain of 13%.
Last Six Months' Price Return:
Coming back, the Special Purpose Insurer Fibonacci, has been formed with an objective to provide collateralized capacity to Renaissance Reinsurance. Fibonacci raised $140 million of capital from third-party investors and RenaissanceRe Medici Fund Ltd and also issued participating notes. In addition to all these arrangements of Fibonacci, Renaissance Reinsurance gets to support its clients with additional property catastrophe reinsurance capacity.
RenaissanceRe, being a global provider of reinsurance and insurance, is shifting to casualty and specialty insurance from property-catastrophe insurance due to changing customer need. This is not only likely to drive long-term growth, but should help beat the intense competition prevailing in the U.S insurance market.
Investors can also look at some better-ranked stocks from the Property & Casualty insurance market like Arch Capital Group Ltd. (ACGL - Free Report) , Axis Capital Holdings Ltd (AXS - Free Report) and State National Companies, Inc. .
Arch Capital offers property, casualty, and mortgage insurance and reinsurance products worldwide. It posted positive surprises in the last four quarters with an average beat of 9.27%.
Axis Capital is one of the several insurance carriers formed to take advantage of the enhanced insurance demand following the 9/11 terrorist attacks. The company also posted positive surprises in the last four quarters with an average beat of 30.19%.
State National, another property, casualty, and mortgage insurance provider in the U.S, posted positive surprises in two of the last four quarters with an average beat of 21.28%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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RenaissanceRe Forms Special Purpose Insurer in Bermuda
RenaissanceRe Holdings Ltd’s (RNR - Free Report) reinsurance subsidiary “Renaissance Reinsurance Ltd.” recently announced the formation of Fibonacci Reinsurance Ltd, which is a Special Purpose Insurer based in Bermuda.
It is worth noting that the strength of RenaissanceRe lies in its both organic and inorganic growth initiatives. Its reinsurance business has been delivering prudent performance despite being exposed to catastrophe losses. Along with this, many other similar tailwinds have boosted shareholders’ confidence, which is evident from the favorable share price movement of RenaissanceRe’s stock. Over the last six months, shares have gained 18.4%, more than Zacks categorized Property & Casualty Insurance industry’s gain of 13%.
Last Six Months' Price Return:
Coming back, the Special Purpose Insurer Fibonacci, has been formed with an objective to provide collateralized capacity to Renaissance Reinsurance. Fibonacci raised $140 million of capital from third-party investors and RenaissanceRe Medici Fund Ltd and also issued participating notes. In addition to all these arrangements of Fibonacci, Renaissance Reinsurance gets to support its clients with additional property catastrophe reinsurance capacity.
RenaissanceRe, being a global provider of reinsurance and insurance, is shifting to casualty and specialty insurance from property-catastrophe insurance due to changing customer need. This is not only likely to drive long-term growth, but should help beat the intense competition prevailing in the U.S insurance market.
Zacks Rank and Stocks to Consider:
Renaissance presently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Investors can also look at some better-ranked stocks from the Property & Casualty insurance market like Arch Capital Group Ltd. (ACGL - Free Report) , Axis Capital Holdings Ltd (AXS - Free Report) and State National Companies, Inc. .
Arch Capital offers property, casualty, and mortgage insurance and reinsurance products worldwide. It posted positive surprises in the last four quarters with an average beat of 9.27%.
Axis Capital is one of the several insurance carriers formed to take advantage of the enhanced insurance demand following the 9/11 terrorist attacks. The company also posted positive surprises in the last four quarters with an average beat of 30.19%.
State National, another property, casualty, and mortgage insurance provider in the U.S, posted positive surprises in two of the last four quarters with an average beat of 21.28%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>