We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
RNR Q2 Earnings Beat on Strong Property Underwriting Results
Read MoreHide Full Article
RenaissanceRe Holdings Ltd. (RNR - Free Report) reported a second-quarter 2025 operating income of $12.29 per share, which beat the Zacks Consensus Estimate by 19.6%. However, the bottom line dipped 1% year over year.
Total operating revenues declined 4.2% year over year to $2.8 billion. The top line fell short of the consensus mark by 4.4%.
The quarterly results benefited on the back of strong underwriting performance, particularly in the Property segment, where improved combined ratios and favorable reserve development boosted profitability. Investment income growth and a declining expense level also contributed to the upside. However, the upside was partly offset by lower net premiums earned, underwriting losses in the Casualty & Specialty segment and elevated catastrophe losses.
RenaissanceRe Holdings Ltd. Price, Consensus and EPS Surprise
Gross premiums written of $3.42 billion dipped marginally year over year but came slightly higher than our estimate of $3.41 billion.
Net premiums earned decreased 5.1% year over year to $2.4 billion. The metric missed the Zacks Consensus Estimate of $2.55 billion and our estimate of $2.52 billion.
Net investment income of $413.1 million inched up 0.6% year over year in the quarter under review on the back of an increase in average invested assets in the fixed-maturity investment portfolios. The figure surpassed the consensus mark of $408 million and our estimate of $411.2 million.
Total expenses were $1.9 billion, which declined 12% year over year and came lower than our estimate of $2.1 billion. The year-over-year decline was attributed to lower net claims and claim expenses incurred, acquisition costs and corporate expenses.
RenaissanceRe’s underwriting income climbed 25.5% year over year to $601.7 million in the second quarter. The combined ratio of 75.1% improved 600 basis points (bps) year over year.
Book value per share was $212.15 as of June 30, 2025, which increased 17.9% year over year. Annualized operating return on average common equity deteriorated 400 bps year over year to 24.2%.
RenaissanceRe’s Segmental Update
Property Segment
The segment’s gross premiums written slipped 1.2% year over year to $1.7 billion in the second quarter due to higher catastrophe losses and rate decreases in the excess and surplus business. The metric lagged our estimate of $1.8 billion.
Net premiums earned of $868 million tumbled 11.5% year over year, lower than the Zacks Consensus Estimate of $1.06 billion and our estimate of $1.02 billion.
It generated an underwriting income of $630.2 million, which advanced 39.5% year over year. The combined ratio improved 2,650 bps year over year to 27.4% on the back of a decline in current accident year net losses and higher prior accident year net favorable development.
Casualty & Specialty Segment
The unit recorded gross premiums written of $1.7 billion in the quarter under review, which inched up 1% year over year and beat our estimate of $1.6 billion. The metric was aided by higher premiums derived from the credit and specialty lines of business.
Net premiums earned dipped 1% year over year to $1.54 billion, which came marginally higher than the Zacks Consensus Estimate of $1.51 billion and our estimate of $1.49 billion.
The segment incurred an underwriting loss of $28.5 million against the prior-year quarter’s underwriting income of $27.6 million. The combined ratio deteriorated 360 bps year over year to 101.8%.
RenaissanceRe’s Financial Position (As of June 30, 2025)
RenaissanceRe exited the second quarter with cash and cash equivalents of $1.4 billion, which fell 14.8% from the 2024-end level.
Total assets of $54.7 billion increased 7.9% from the figure at 2024-end.
Debt amounted to $2.3 billion, up 20% from the figure as of Dec. 31, 2024.
Total shareholders’ equity of $10.8 billion improved 2.1% from the 2024-end level.
RenaissanceRe’s Share Repurchase Update
RenaissanceRe bought back common shares worth $376.4 million in the second quarter. From July 1, 2025, to July 21, 2025, additional share repurchases of $70.2 million were made.
Of the insurance industry players that have reported second-quarter 2025 results so far, the bottom-line results of RLI Corp. (RLI - Free Report) , W. R. Berkley Corporation (WRB - Free Report) and The Travelers Companies, Inc. (TRV - Free Report) beat the respective Zacks Consensus Estimate.
RLI reported second-quarter 2025 operating earnings of 84 cents per share, beating the Zacks Consensus Estimate by 12%. The bottom line, however, decreased 2.3% from the prior-year quarter. Operating revenues for the reported quarter were $441 million, up 6.9% year over year. The top line, however, missed the Zacks Consensus Estimate by 0.5%.
Gross premiums written remained flat at $562.3 million. Net investment income increased 16% year over year to $39.4 million. The investment portfolio’s total return was 2.9% in the quarter. Underwriting income of $62.2 million decreased 11.14% year over year. The combined ratio deteriorated 300 bps year over year to 84.5.
W.R. Berkley's second-quarter 2025 operating income of $1.05 per share beat the Zacks Consensus Estimate of $1.03. The bottom line increased about 1% year over year. W.R. Berkley’s net premiums written were $3.4 billion, up 9.9% year over year. Operating revenues were at $3.6 billion, up 7.9% year over year. The top line beat the consensus estimate by 1.8%.
Net investment income grew 1.9% to $379.3 million. The consolidated combined ratio (a measure of underwriting profitability) deteriorated 50 bps year over year to 92.1. Net premiums written at the Insurance segment increased 7.2% year over year to $3 billion in the quarter. The combined ratio deteriorated 30 bps to 92.1. Net premiums written in the Reinsurance & Monoline Excess segment increased 6.8% year over year to $337.7 million.
Travelers reported second-quarter 2025 core income of $6.51 per share, which beat the Zacks Consensus Estimate by 83.8%. Travelers’ total revenues increased 6.7% from the year-ago quarter to $12.1 billion. The top-line figure, however, missed the Zacks Consensus Estimate by 0.7%. Net written premiums increased 4% year over year to a record $11.5 billion.
Net investment income increased 6% year over year to $942 million. Travelers witnessed an underwriting profit of $1 billion against a loss of $65 million incurred in the year-ago quarter. The consolidated underlying combined ratio of 84.7 improved 300 bps year over year. In the Business Insurance segment, net written premiums increased 5% year over year to about $5.8 billion. The combined ratio improved 250 bps year over year to 93.6. Segment income of $813 million increased 24% year over year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
RNR Q2 Earnings Beat on Strong Property Underwriting Results
RenaissanceRe Holdings Ltd. (RNR - Free Report) reported a second-quarter 2025 operating income of $12.29 per share, which beat the Zacks Consensus Estimate by 19.6%. However, the bottom line dipped 1% year over year.
Total operating revenues declined 4.2% year over year to $2.8 billion. The top line fell short of the consensus mark by 4.4%.
The quarterly results benefited on the back of strong underwriting performance, particularly in the Property segment, where improved combined ratios and favorable reserve development boosted profitability. Investment income growth and a declining expense level also contributed to the upside. However, the upside was partly offset by lower net premiums earned, underwriting losses in the Casualty & Specialty segment and elevated catastrophe losses.
RenaissanceRe Holdings Ltd. Price, Consensus and EPS Surprise
RenaissanceRe Holdings Ltd. price-consensus-eps-surprise-chart | RenaissanceRe Holdings Ltd. Quote
RenaissanceRe’s Quarterly Operational Update
Gross premiums written of $3.42 billion dipped marginally year over year but came slightly higher than our estimate of $3.41 billion.
Net premiums earned decreased 5.1% year over year to $2.4 billion. The metric missed the Zacks Consensus Estimate of $2.55 billion and our estimate of $2.52 billion.
Net investment income of $413.1 million inched up 0.6% year over year in the quarter under review on the back of an increase in average invested assets in the fixed-maturity investment portfolios. The figure surpassed the consensus mark of $408 million and our estimate of $411.2 million.
Total expenses were $1.9 billion, which declined 12% year over year and came lower than our estimate of $2.1 billion. The year-over-year decline was attributed to lower net claims and claim expenses incurred, acquisition costs and corporate expenses.
RenaissanceRe’s underwriting income climbed 25.5% year over year to $601.7 million in the second quarter. The combined ratio of 75.1% improved 600 basis points (bps) year over year.
Book value per share was $212.15 as of June 30, 2025, which increased 17.9% year over year. Annualized operating return on average common equity deteriorated 400 bps year over year to 24.2%.
RenaissanceRe’s Segmental Update
Property Segment
The segment’s gross premiums written slipped 1.2% year over year to $1.7 billion in the second quarter due to higher catastrophe losses and rate decreases in the excess and surplus business. The metric lagged our estimate of $1.8 billion.
Net premiums earned of $868 million tumbled 11.5% year over year, lower than the Zacks Consensus Estimate of $1.06 billion and our estimate of $1.02 billion.
It generated an underwriting income of $630.2 million, which advanced 39.5% year over year. The combined ratio improved 2,650 bps year over year to 27.4% on the back of a decline in current accident year net losses and higher prior accident year net favorable development.
Casualty & Specialty Segment
The unit recorded gross premiums written of $1.7 billion in the quarter under review, which inched up 1% year over year and beat our estimate of $1.6 billion. The metric was aided by higher premiums derived from the credit and specialty lines of business.
Net premiums earned dipped 1% year over year to $1.54 billion, which came marginally higher than the Zacks Consensus Estimate of $1.51 billion and our estimate of $1.49 billion.
The segment incurred an underwriting loss of $28.5 million against the prior-year quarter’s underwriting income of $27.6 million. The combined ratio deteriorated 360 bps year over year to 101.8%.
RenaissanceRe’s Financial Position (As of June 30, 2025)
RenaissanceRe exited the second quarter with cash and cash equivalents of $1.4 billion, which fell 14.8% from the 2024-end level.
Total assets of $54.7 billion increased 7.9% from the figure at 2024-end.
Debt amounted to $2.3 billion, up 20% from the figure as of Dec. 31, 2024.
Total shareholders’ equity of $10.8 billion improved 2.1% from the 2024-end level.
RenaissanceRe’s Share Repurchase Update
RenaissanceRe bought back common shares worth $376.4 million in the second quarter. From July 1, 2025, to July 21, 2025, additional share repurchases of $70.2 million were made.
RNR’s 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 second-quarter 2025 results so far, the bottom-line results of RLI Corp. (RLI - Free Report) , W. R. Berkley Corporation (WRB - Free Report) and The Travelers Companies, Inc. (TRV - Free Report) beat the respective Zacks Consensus Estimate.
RLI reported second-quarter 2025 operating earnings of 84 cents per share, beating the Zacks Consensus Estimate by 12%. The bottom line, however, decreased 2.3% from the prior-year quarter. Operating revenues for the reported quarter were $441 million, up 6.9% year over year. The top line, however, missed the Zacks Consensus Estimate by 0.5%.
Gross premiums written remained flat at $562.3 million. Net investment income increased 16% year over year to $39.4 million. The investment portfolio’s total return was 2.9% in the quarter. Underwriting income of $62.2 million decreased 11.14% year over year. The combined ratio deteriorated 300 bps year over year to 84.5.
W.R. Berkley's second-quarter 2025 operating income of $1.05 per share beat the Zacks Consensus Estimate of $1.03. The bottom line increased about 1% year over year. W.R. Berkley’s net premiums written were $3.4 billion, up 9.9% year over year. Operating revenues were at $3.6 billion, up 7.9% year over year. The top line beat the consensus estimate by 1.8%.
Net investment income grew 1.9% to $379.3 million. The consolidated combined ratio (a measure of underwriting profitability) deteriorated 50 bps year over year to 92.1. Net premiums written at the Insurance segment increased 7.2% year over year to $3 billion in the quarter. The combined ratio deteriorated 30 bps to 92.1. Net premiums written in the Reinsurance & Monoline Excess segment increased 6.8% year over year to $337.7 million.
Travelers reported second-quarter 2025 core income of $6.51 per share, which beat the Zacks Consensus Estimate by 83.8%. Travelers’ total revenues increased 6.7% from the year-ago quarter to $12.1 billion. The top-line figure, however, missed the Zacks Consensus Estimate by 0.7%. Net written premiums increased 4% year over year to a record $11.5 billion.
Net investment income increased 6% year over year to $942 million. Travelers witnessed an underwriting profit of $1 billion against a loss of $65 million incurred in the year-ago quarter. The consolidated underlying combined ratio of 84.7 improved 300 bps year over year. In the Business Insurance segment, net written premiums increased 5% year over year to about $5.8 billion. The combined ratio improved 250 bps year over year to 93.6. Segment income of $813 million increased 24% year over year.