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RenaissanceRe (RNR) Up 19% in Past 6 Months: Further Upside Left?
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Shares of RenaissanceRe Holdings Ltd. (RNR - Free Report) have gained 19.1% in the past six months compared with the industry’s 10.6% growth. The Finance sector rose 2.5% but the S&P 500 composite index dipped 1% in the same time frame. With a market capitalization of $8.2 billion, the average volume of shares traded in the last three months was 0.4 million.
Image Source: Zacks Investment Research
Growing premiums attributable to an improved pricing environment, growth-related initiatives and strong cash reserves continue to drive the Zacks Rank #3 (Hold) property and casualty insurer.
Can RNR Retain the Momentum?
The Zacks Consensus Estimate for RenaissanceRe’s 2022 earnings is pegged at $3.67 per share, indicating a more than two-fold increase from the year-ago reported figure. The consensus mark for revenues indicates an improvement of 19.9% from the prior-year reported number.
The Zacks Consensus Estimate for 2023 earnings is pegged at $21.30 per share, which indicates a nearly six-fold increase from the year-ago reported figure. The consensus mark for revenues suggests 10.9% growth from the prior-year reported number.
The premiums of RenaissanceRe continue to benefit from solid performances of its Property, and Casualty and Specialty segments. A better pricing environment, resulting from a global economic recovery, paves the way for insurers to implement frequent rate hikes.
Growing premiums bode well for RNR, since it accounts for a significant chunk of its top line. For this year, management estimates net premiums earned of $3.4 billion. Although RenaissanceRe grapples with continued catastrophe losses, frequent occurrence of catastrophic events ramps up the policy renewal rate, which keeps premiums flowing.
The insurer follows an inorganic growth route through acquisitions or business expansions to strengthen its capabilities. RNR keeps an eye on selling off its underperforming businesses to intensify focus on growing business units that fetch higher return.
A strong cash position, coupled with robust cash-generating abilities, substantiates RenaissanceRe’s solid financial stand, with which it can service debt obligations or undertake growth-linked investments. RNR remains active on the capital deployment front and rewards shareholders through share buybacks or dividend payments. It has been resorting to uninterrupted dividend hikes for nearly three decades. Its dividend yield of 0.8% remains higher than the industry’s figure of 0.4%.
Kinsale Capital’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 15.16%. The Zacks Consensus Estimate for KNSL’s 2022 earnings indicates a 27.5% rise from the year-ago reported figure.
The consensus mark for KNSL’s 2022 revenues suggests an improvement of 26.9% from the prior-year reported figure. Shares of Kinsale Capital have gained 12% in the past six months.
Unum Group’s bottom line outpaced estimates in each of the trailing four quarters, the average surprise being 34.90%. The Zacks Consensus Estimate for UNM’s 2022 earnings indicates an improvement of 43.5% from the year-ago reported figure, while the same for revenues suggests 0.6% growth.
The Zacks Consensus Estimate for UNM’s 2022 earnings has moved 1.8% north in the past 30 days. Shares of Unum Group have gained 21.8% in the past six months.
Radian Group’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 45.10%. The Zacks Consensus Estimate for RDN’s 2022 earnings suggests an improvement of 49.5% from the year-ago reported figure.
The Zacks Consensus Estimate for RDN’s 2022 earnings has moved 12.7% north in the past 60 days. Shares of Radian Group have lost 4.2% in the past six months.
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RenaissanceRe (RNR) Up 19% in Past 6 Months: Further Upside Left?
Shares of RenaissanceRe Holdings Ltd. (RNR - Free Report) have gained 19.1% in the past six months compared with the industry’s 10.6% growth. The Finance sector rose 2.5% but the S&P 500 composite index dipped 1% in the same time frame. With a market capitalization of $8.2 billion, the average volume of shares traded in the last three months was 0.4 million.
Image Source: Zacks Investment Research
Growing premiums attributable to an improved pricing environment, growth-related initiatives and strong cash reserves continue to drive the Zacks Rank #3 (Hold) property and casualty insurer.
Can RNR Retain the Momentum?
The Zacks Consensus Estimate for RenaissanceRe’s 2022 earnings is pegged at $3.67 per share, indicating a more than two-fold increase from the year-ago reported figure. The consensus mark for revenues indicates an improvement of 19.9% from the prior-year reported number.
The Zacks Consensus Estimate for 2023 earnings is pegged at $21.30 per share, which indicates a nearly six-fold increase from the year-ago reported figure. The consensus mark for revenues suggests 10.9% growth from the prior-year reported number.
The premiums of RenaissanceRe continue to benefit from solid performances of its Property, and Casualty and Specialty segments. A better pricing environment, resulting from a global economic recovery, paves the way for insurers to implement frequent rate hikes.
Growing premiums bode well for RNR, since it accounts for a significant chunk of its top line. For this year, management estimates net premiums earned of $3.4 billion. Although RenaissanceRe grapples with continued catastrophe losses, frequent occurrence of catastrophic events ramps up the policy renewal rate, which keeps premiums flowing.
The insurer follows an inorganic growth route through acquisitions or business expansions to strengthen its capabilities. RNR keeps an eye on selling off its underperforming businesses to intensify focus on growing business units that fetch higher return.
A strong cash position, coupled with robust cash-generating abilities, substantiates RenaissanceRe’s solid financial stand, with which it can service debt obligations or undertake growth-linked investments. RNR remains active on the capital deployment front and rewards shareholders through share buybacks or dividend payments. It has been resorting to uninterrupted dividend hikes for nearly three decades. Its dividend yield of 0.8% remains higher than the industry’s figure of 0.4%.
Stocks to Consider
Some better-ranked stocks in the insurance space are Kinsale Capital Group, Inc. (KNSL - Free Report) , Unum Group (UNM - Free Report) and Radian Group Inc. (RDN - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kinsale Capital’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 15.16%. The Zacks Consensus Estimate for KNSL’s 2022 earnings indicates a 27.5% rise from the year-ago reported figure.
The consensus mark for KNSL’s 2022 revenues suggests an improvement of 26.9% from the prior-year reported figure. Shares of Kinsale Capital have gained 12% in the past six months.
Unum Group’s bottom line outpaced estimates in each of the trailing four quarters, the average surprise being 34.90%. The Zacks Consensus Estimate for UNM’s 2022 earnings indicates an improvement of 43.5% from the year-ago reported figure, while the same for revenues suggests 0.6% growth.
The Zacks Consensus Estimate for UNM’s 2022 earnings has moved 1.8% north in the past 30 days. Shares of Unum Group have gained 21.8% in the past six months.
Radian Group’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 45.10%. The Zacks Consensus Estimate for RDN’s 2022 earnings suggests an improvement of 49.5% from the year-ago reported figure.
The Zacks Consensus Estimate for RDN’s 2022 earnings has moved 12.7% north in the past 60 days. Shares of Radian Group have lost 4.2% in the past six months.