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RenaissanceRe (RNR) Q1 Earnings Miss Estimates, Fall Y/Y
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RenaissanceRe Holdings Ltd.’s (RNR - Free Report) first-quarter 2017 operating earnings per share of $1.18 missed the Zacks Consensus Estimate by 40%. The bottom line also plunged 21.8% year over year. The downside stemmed from an increase in the company’s combined ratio due to the change in Ogden rate.
RenaissanceRe’s first-quarter operating revenues of $422 million increased 9.3% year over year due to higher premiums and net investment income.
Quarterly Operational Update:
Gross premiums written grew 7% year over year to $922.1 million.
Net investment income of $54.3 million grew 86% from the prior-year quarter. The recent hike in interest rates is expected to have supported this improvement.
RenaissanceRe witnessed a year-over-year increase of 27% in total expenses to $339.4 million. This was mainly due to higher net claims and claim expenses as well as acquisition-related costs.
Quarterly Segment Update
Property Segment: Gross premiums written were $520.5 million, up 17% year over year. Underwriting income decreased 13.3% year over year to $91.4 million. Combined ratio of 51.1% deteriorated 1080 basis points (bps) year over year.
Casualty and Specialty Segment: Gross premiums written were $401.6 million, down 3.7% from the prior-year quarter. The company incurred underwriting loss of $3 million as against an underwriting income of $0.5 million in the prior-year quarter. Combined ratio of 127.5% deteriorated 2780 bps year over year
RenaissanceRe Holdings Ltd. Price, Consensus and EPS Surprise
As of Mar 31, 2017, total asset of RenaissanceRe was $13.3 billion, up 0.8% year over year.
The company had total debt of $945.7 million as of Mar 31, 2017, down almost 0.3% from year-end 2016.
Cash and cash equivalents were $454 million, up 7.8% from Mar 31, 2017.
Share Repurchas
RenaissanceRe repurchased 0.55 million common shares in open market transactions at an aggregate cost of $80.0 million and an average price of $145.36 per common share
Among other players from the same space that have reported first-quarter earnings so far, the bottom line at The Progressive Corporation (PGR - Free Report) , The Travelers Companies, Inc. (TRV - Free Report) and RLI Corp. (RLI - Free Report) missed their respective Zacks Consensus Estimate.
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RenaissanceRe (RNR) Q1 Earnings Miss Estimates, Fall Y/Y
RenaissanceRe Holdings Ltd.’s (RNR - Free Report) first-quarter 2017 operating earnings per share of $1.18 missed the Zacks Consensus Estimate by 40%. The bottom line also plunged 21.8% year over year. The downside stemmed from an increase in the company’s combined ratio due to the change in Ogden rate.
RenaissanceRe’s first-quarter operating revenues of $422 million increased 9.3% year over year due to higher premiums and net investment income.
Quarterly Operational Update:
Gross premiums written grew 7% year over year to $922.1 million.
Net investment income of $54.3 million grew 86% from the prior-year quarter. The recent hike in interest rates is expected to have supported this improvement.
RenaissanceRe witnessed a year-over-year increase of 27% in total expenses to $339.4 million. This was mainly due to higher net claims and claim expenses as well as acquisition-related costs.
Quarterly Segment Update
Property Segment: Gross premiums written were $520.5 million, up 17% year over year. Underwriting income decreased 13.3% year over year to $91.4 million. Combined ratio of 51.1% deteriorated 1080 basis points (bps) year over year.
Casualty and Specialty Segment: Gross premiums written were $401.6 million, down 3.7% from the prior-year quarter. The company incurred underwriting loss of $3 million as against an underwriting income of $0.5 million in the prior-year quarter. Combined ratio of 127.5% deteriorated 2780 bps year over year
RenaissanceRe Holdings Ltd. Price, Consensus and EPS Surprise
RenaissanceRe Holdings Ltd. Price, Consensus and EPS Surprise | RenaissanceRe Holdings Ltd. Quote
Financial Position
As of Mar 31, 2017, total asset of RenaissanceRe was $13.3 billion, up 0.8% year over year.
The company had total debt of $945.7 million as of Mar 31, 2017, down almost 0.3% from year-end 2016.
Cash and cash equivalents were $454 million, up 7.8% from Mar 31, 2017.
Share Repurchas
RenaissanceRe repurchased 0.55 million common shares in open market transactions at an aggregate cost of $80.0 million and an average price of $145.36 per common share
Zacks Rank
RenaissanceRe currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Among other players from the same space that have reported first-quarter earnings so far, the bottom line at The Progressive Corporation (PGR - Free Report) , The Travelers Companies, Inc. (TRV - Free Report) and RLI Corp. (RLI - Free Report) missed their respective Zacks Consensus Estimate.
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Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
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