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RenaissanceRe Holdings Ltd. (RNR - Free Report) reported fourth-quarter 2021 operating earnings per share of $4.71, which surpassed the Zacks Consensus Estimate by 27%. The bottom line came against the prior-year quarter’s loss of $1.59 per share.
RNR gained from higher gross premiums at the Property, and Casualty and Specialty segments.
RenaissanceRe Holdings Ltd. Price, Consensus and EPS Surprise
Total revenues of $1.39 billion dipped 0.1% year over year due to lower net investment income, net realized and unrealized losses on investments and foreign exchange losses.
Gross premiums written surged 40.4% year over year to $1.3 billion in the fourth quarter, courtesy of increased premiums at the Property, and Casualty and Specialty segments. Net investment income declined 1.5% year over year to $80.4 million in the quarter under review.
Total expenses of RenaissanceRe declined 10.4% year over year to $1.08 billion owing to lower net claims and claim expenses incurred plus lower operational costs and corporate expenses.
In the reported quarter, RNR delivered an underwriting income of $276.66 million against the year-ago quarter's underwriting loss of $151.65 million.
Combined ratio contracted 3530 basis points (bps) year over year to 79.4% in the fourth quarter.
Quarterly Segment Update
Property Segment
Gross premiums written rose 24.8% year over year to $384.6 million on the back of an uptick in other property class of business as a result of rate improvements in new and current businesses. However, the same was partially offset by a dip in property catastrophe class of business.
The segment incurred an underwriting income of $223.09 million, against the year-ago quarter’s loss of $130.2 million.
Combined ratio contracted 6120 bps year over year to 64.4%.
Casualty and Specialty Segment
Gross premiums written soared 48% year over year to $928.3 million in the quarter under review. The improvement can be attributed to a hike in professional liability, rate increases and growth in new and existing business written, general casualty and other specialty lines of business.
The segment’s underwriting income was $53.5 million against the year-ago quarter’s underwriting loss of $21.4 million.
Combined ratio contracted 1160 bps year over year to 92.5%.
Financial Position (as of Dec 31, 2021)
RenaissanceRe exited the fourth quarter with cash and cash equivalents of $1.86 billion, which increased 7% from the 2020-end level.
Total assets of $33.9 billion increased 10.2% from the figure as of Dec 31, 2020.
RNR’s debt amounted to $1.1 billion, which inched up 2.8% from the level at 2020 end.
Book value per share amounted to $132.17, which declined 4.5% year over year.
Annualized operating return on average common equity was 14.2% in the quarter under review.
Share Repurchase Update
In the fourth quarter, RenaissanceRe bought back shares worth $326.9 million.
Full-Year Performance
RNR reported operating earnings of $1.72 for 2021, comparing favorably with 2020’s operating earnings of 12 cents per share.
For the year, total revenues reported were $5.2 billion, up 2% year over year. Gross premiums and net premiums for the full year grew 34.9% and 45% year over year, respectively.
Of the insurance industry players that have reported fourth-quarter results so far, the bottom-line results of The Travelers Companies, Inc. (TRV - Free Report) and Brown & Brown, Inc. (BRO - Free Report) beat the Zacks Consensus Estimate.
Upcoming Release
A stock worth considering from the insurance space with the perfect mix of elements to surpass estimates in its upcoming quarterly release is as follows:
Unum Group (UNM - Free Report) has an Earnings ESP of +0.31% and is Zacks #3 Ranked, currently.
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RenaissanceRe's (RNR) Q4 Earnings Beat Estimates, Rise Y/Y
RenaissanceRe Holdings Ltd. (RNR - Free Report) reported fourth-quarter 2021 operating earnings per share of $4.71, which surpassed the Zacks Consensus Estimate by 27%. The bottom line came against the prior-year quarter’s loss of $1.59 per share.
RNR gained from higher gross premiums at the Property, and Casualty and Specialty segments.
RenaissanceRe Holdings Ltd. Price, Consensus and EPS Surprise
RenaissanceRe Holdings Ltd. price-consensus-eps-surprise-chart | RenaissanceRe Holdings Ltd. Quote
Quarterly Operational Update
Total revenues of $1.39 billion dipped 0.1% year over year due to lower net investment income, net realized and unrealized losses on investments and foreign exchange losses.
Gross premiums written surged 40.4% year over year to $1.3 billion in the fourth quarter, courtesy of increased premiums at the Property, and Casualty and Specialty segments. Net investment income declined 1.5% year over year to $80.4 million in the quarter under review.
Total expenses of RenaissanceRe declined 10.4% year over year to $1.08 billion owing to lower net claims and claim expenses incurred plus lower operational costs and corporate expenses.
In the reported quarter, RNR delivered an underwriting income of $276.66 million against the year-ago quarter's underwriting loss of $151.65 million.
Combined ratio contracted 3530 basis points (bps) year over year to 79.4% in the fourth quarter.
Quarterly Segment Update
Property Segment
Gross premiums written rose 24.8% year over year to $384.6 million on the back of an uptick in other property class of business as a result of rate improvements in new and current businesses. However, the same was partially offset by a dip in property catastrophe class of business.
The segment incurred an underwriting income of $223.09 million, against the year-ago quarter’s loss of $130.2 million.
Combined ratio contracted 6120 bps year over year to 64.4%.
Casualty and Specialty Segment
Gross premiums written soared 48% year over year to $928.3 million in the quarter under review. The improvement can be attributed to a hike in professional liability, rate increases and growth in new and existing business written, general casualty and other specialty lines of business.
The segment’s underwriting income was $53.5 million against the year-ago quarter’s underwriting loss of $21.4 million.
Combined ratio contracted 1160 bps year over year to 92.5%.
Financial Position (as of Dec 31, 2021)
RenaissanceRe exited the fourth quarter with cash and cash equivalents of $1.86 billion, which increased 7% from the 2020-end level.
Total assets of $33.9 billion increased 10.2% from the figure as of Dec 31, 2020.
RNR’s debt amounted to $1.1 billion, which inched up 2.8% from the level at 2020 end.
Book value per share amounted to $132.17, which declined 4.5% year over year.
Annualized operating return on average common equity was 14.2% in the quarter under review.
Share Repurchase Update
In the fourth quarter, RenaissanceRe bought back shares worth $326.9 million.
Full-Year Performance
RNR reported operating earnings of $1.72 for 2021, comparing favorably with 2020’s operating earnings of 12 cents per share.
For the year, total revenues reported were $5.2 billion, up 2% year over year.
Gross premiums and net premiums for the full year grew 34.9% and 45% year over year, respectively.
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
Of the insurance industry players that have reported fourth-quarter results so far, the bottom-line results of The Travelers Companies, Inc. (TRV - Free Report) and Brown & Brown, Inc. (BRO - Free Report) beat the Zacks Consensus Estimate.
Upcoming Release
A stock worth considering from the insurance space with the perfect mix of elements to surpass estimates in its upcoming quarterly release is as follows:
Unum Group (UNM - Free Report) has an Earnings ESP of +0.31% and is Zacks #3 Ranked, currently.