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RenaissanceRe Holdings Ltd.’s (RNR - Free Report) fourth-quarter operating earnings per share of $1.05 handily beat the Zacks Consensus Estimate by 38%. However, earnings declined 64% year over year.
Including pretax expenses and investment costs, the company incurred net loss of 9 cents per share in the fourth quarter against net income of $1.69 in the year-ago quarter.
For 2017, the company incurred operating loss of $8.35 per share that compares unfavorably with the company’s operating income of $8.10 in 2016. The figure is, however, narrower than the Zacks Consensus Estimate of loss of $8.94.
The company’s underwriting results in the quarter were adversely affected by California Wildfires that deteriorated the combined ratio. Also, following the recent tax reform, the company wrote-down a portion of its U.S. deferred tax asset during the fourth quarter that resulted in a net loss of $36.7 million.
RenaissanceRe’s fourth-quarter operating revenues of $497 million surpassed the Zacks Consensus Estimate of $444 million and increased 23% year over year due to higher premiums.
Quarterly Operational Update
Gross premiums written increased 26.2% year over year to $407.8 million driven by $42.7 million and $42.0 million increase in the Property segment and Casualty and Specialty segment, respectively.
Net investment income of $73.5 million rose 55.4% from the prior-year quarter.
RenaissanceRe’s total expenses came in at $447.9 million, up 66% from the year-ago quarter. This was mainly due to higher net claims and claim expenses and acquisition expenses.
Quarterly Segment Update
Property Segment
Gross premiums written were $95.2 million, up 123% year over year.
The segment incurred an underwriting loss of $22.7 million against underwriting income of $100.5 million in the year-ago quarter.
Combined ratio of 110.6% deteriorated from 44.8% in the previous-year quarter.
Casualty and Specialty Segment
Gross premiums written were $312.6 million, up 15.5% from the prior-year quarter driven by selective growth in new and existing business.
The company reported underwriting income of $11.5 million compared with underwriting income of $3 million in the prior-year quarter.
Combined ratio of 94.5% improved from 98.2% in the fourth quarter of 2016.
RenaissanceRe Holdings Ltd. Price, Consensus and EPS Surprise
Performance of Other Companies in the Finance Sector
Among other players from the insurance industry that have reported fourth-quarter earnings till now, the bottom line of Brown & Brown, Inc. (BRO - Free Report) , MGIC Investment Corporation (MTG - Free Report) and The Progressive Corporation (PGR - Free Report) beat the respective Zacks Consensus Estimate.
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RenaissanceRe (RNR) Q4 Earnings & Revenues Beat Estimates
RenaissanceRe Holdings Ltd.’s (RNR - Free Report) fourth-quarter operating earnings per share of $1.05 handily beat the Zacks Consensus Estimate by 38%. However, earnings declined 64% year over year.
Including pretax expenses and investment costs, the company incurred net loss of 9 cents per share in the fourth quarter against net income of $1.69 in the year-ago quarter.
For 2017, the company incurred operating loss of $8.35 per share that compares unfavorably with the company’s operating income of $8.10 in 2016. The figure is, however, narrower than the Zacks Consensus Estimate of loss of $8.94.
The company’s underwriting results in the quarter were adversely affected by California Wildfires that deteriorated the combined ratio. Also, following the recent tax reform, the company wrote-down a portion of its U.S. deferred tax asset during the fourth quarter that resulted in a net loss of $36.7 million.
RenaissanceRe’s fourth-quarter operating revenues of $497 million surpassed the Zacks Consensus Estimate of $444 million and increased 23% year over year due to higher premiums.
Quarterly Operational Update
Gross premiums written increased 26.2% year over year to $407.8 million driven by $42.7 million and $42.0 million increase in the Property segment and Casualty and Specialty segment, respectively.
Net investment income of $73.5 million rose 55.4% from the prior-year quarter.
RenaissanceRe’s total expenses came in at $447.9 million, up 66% from the year-ago quarter. This was mainly due to higher net claims and claim expenses and acquisition expenses.
Quarterly Segment Update
Property Segment
Gross premiums written were $95.2 million, up 123% year over year.
The segment incurred an underwriting loss of $22.7 million against underwriting income of $100.5 million in the year-ago quarter.
Combined ratio of 110.6% deteriorated from 44.8% in the previous-year quarter.
Casualty and Specialty Segment
Gross premiums written were $312.6 million, up 15.5% from the prior-year quarter driven by selective growth in new and existing business.
The company reported underwriting income of $11.5 million compared with underwriting income of $3 million in the prior-year quarter.
Combined ratio of 94.5% improved from 98.2% in the fourth quarter of 2016.
RenaissanceRe Holdings Ltd. Price, Consensus and EPS Surprise
RenaissanceRe Holdings Ltd. Price, Consensus and EPS Surprise | RenaissanceRe Holdings Ltd. Quote
Financial Position
As of Dec 31, 2017, total assets of RenaissanceRe were $15.2 billion, up 23% year over year.
The company had total debt of $989.6 million as of Dec 31, 2017, up 4.3% from year-end 2016.
Cash and cash equivalents were $1.4 billion, up from $421 million at 2016 end.
Share Repurchase
During 2017, RenaissanceRe repurchased 1.3 million common shares at an aggregate cost of $188.6 million and an average price of $142.67 per share.
Zacks Rank
RenaissanceRe carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies in the Finance Sector
Among other players from the insurance industry that have reported fourth-quarter earnings till now, the bottom line of Brown & Brown, Inc. (BRO - Free Report) , MGIC Investment Corporation (MTG - Free Report) and The Progressive Corporation (PGR - Free Report) beat the respective Zacks Consensus Estimate.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>