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RNR Q3 Earnings Beat on Lower Expenses, Strong Underwriting Results
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Key Takeaways
RNR's Q3 operating income per share jumped 52.7% YOY and beat estimates by 64.6%.
Lower expenses and strong Property underwriting drove the quarter's profit surge.
Casualty & Specialty unit posted a wider underwriting loss as net premiums earned declined.
RenaissanceRe Holdings Ltd. (RNR - Free Report) reported a third-quarter 2025 operating income of $15.62 per share, which outpaced the Zacks Consensus Estimate by a whopping 64.6%. The bottom line soared 52.7% year over year.
Total operating revenues of $2.9 billion tumbled 4.5% year over year. The top line missed the consensus mark by 3.7%.
The quarterly results benefited from a decline in expenses and strong underwriting performance, particularly in the Property segment. Improved net investment income also contributed to the upside. However, the upside was partly offset by lower net premiums earned across both segments and softer underwriting results in the Casualty & Specialty unit.
RenaissanceRe Holdings Ltd. Price, Consensus and EPS Surprise
Gross premiums written slipped 3.2% year over year to $2.3 billion, which fell short of our estimate of $2.5 billion.
Net premiums earned of $2.4 billion declined 5.8% year over year. The metric missed the Zacks Consensus Estimate of $2.56 billion and our estimate of $2.59 billion.
Net investment income came in at $438.4 million, which grew 3.4% year over year in the quarter under review, attributable to improved average invested assets in the fixed-maturity investment portfolios. The metric beat the consensus mark of $420 million and our estimate of $418.6 million.
Total expenses decreased 23.3% year over year to $1.7 billion, lower than our estimate of $2.6 billion. The year-over-year decline resulted from a decline in net claims and claim expenses incurred, acquisition costs and operational expenses.
RenaissanceRe reported an underwriting income of $770.2 million in the third quarter, which jumped 95.6% year over year. The combined ratio improved 1,640 basis points (bps) year over year to 68.4%.
Book value per common share was $231.23 as of Sept. 30, 2025, which improved 14.5% year over year. Annualized operating return on average common equity improved 650 bps year over year to 28.2%.
RenaissanceRe’s Segmental Update
Property Segment
The segment recorded gross premiums written of $733.3 million in the third quarter, which fell 7.3% year over year and missed our estimate of $793 million. The metric was hurt by the prior accident years' favorable development.
Net premiums earned decreased 5.8% year over year to $936.9 million. The reported figure lagged the Zacks Consensus Estimate of $1.06 billion and our estimate of $1.1 billion.
It generated an underwriting income of $791.5 million, which doubled year over year. The combined ratio improved 4,480 bps year over year to 15.5% 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’s gross premiums written dipped 1.2% year over year to $1.6 billion, lower than our estimate of $1.7 billion. The metric was hurt by reduced premiums derived from the casualty lines of business.
Net premiums earned totaled $1.5 billion, which tumbled 5.7% year over year in the quarter under review. The reported figure marginally missed the Zacks Consensus Estimate.
The segment incurred an underwriting loss of $21.3 million, wider than the prior-year quarter’s loss of $0.9 million. The combined ratio deteriorated 130 bps year over year to 101.4%.
RenaissanceRe’s Financial Position (As of Sept. 30, 2025)
RenaissanceRe exited the third quarter with cash and cash equivalents of $1.7 billion, which inched up 1.5% from the 2024-end level.
Total assets of $54.5 billion increased 7.5% from the figure at 2024-end.
Debt amounted to $2.2 billion, up 18.2% from the figure as of Dec. 31, 2024.
Total shareholders’ equity of $11.5 billion advanced 8.8% from the 2024-end level.
RenaissanceRe’s Share Repurchase Update
RenaissanceRe bought back common shares worth around $205.2 million in the third quarter. From Oct. 1, 2025, to Oct. 24, 2025, additional share repurchases of $100 million were made.
Of the insurance industry players that have reported third-quarter 2025 results so far, the bottom-line results of W. R. Berkley Corporation (WRB - Free Report) , Chubb Limited (CB - Free Report) and First American Financial Corporation (FAF - Free Report) beat the respective Zacks Consensus Estimate.
W.R. Berkley reported third-quarter 2025 operating income of $1.10 per share, which beat the Zacks Consensus Estimate of $1.03 per share by 2.8%. The bottom line increased 18.3% year over year. Net premiums written were $3.4 billion, up 5.5% year over year. Net investment income grew 8.5% to $351.2 million. Operating revenues came in at $3.6 billion, up 8.2% year over year. The top line beat the consensus estimate by 0.4%. The consolidated combined ratio remained flat year over year at 90.9.
Net premiums written at the Insurance segment increased 5.1% year over year to $2.8 billion in the quarter. Our estimate was $2.9 billion. The combined ratio deteriorated 80 bps to 92.3. Net premiums written in the Reinsurance & Monoline Excess segment increased 8.6% year over year to $417.1 million. The combined ratio improved 560 bps to 87.
Chubb’s third-quarter 2025 core operating income of $7.49 per share beat the Zacks Consensus Estimate by 26%. The bottom line increased 30.9% year over year. Net premiums written improved 7.5% year over year to $14.8 billion in the quarter. Pre-tax net investment income was $1.65 billion, up 9.3% year over year. Revenues of $16.1 billion beat the consensus estimate by 1.6% and improved 7.4% year over year.
Property and casualty (P&C) underwriting income was $2.2 billion, up 55% year over year. The P&C combined ratio improved 590 basis points (bps) on a year-over-year basis to 81.8% in the quarter under review. The North America Commercial P&C Insurance unit’s net premiums written increased 2.9% year over year to $5.6 billion. Net premiums written in the North America Personal P&C Insurance segment climbed 8.1% year over year to $1.8 billion.
First American Financial reported third-quarter 2025 operating income per share of $1.70, which beat the Zacks Consensus Estimate by 19.7%. The bottom line increased 26.8% year over year. Operating revenues of $1.9 billion increased 40.7% year over year. The top line also beat the Zacks Consensus Estimate by 6.8%. Investment income was $163.8 million in the third quarter, up 11.7% year over year. The Title Insurance and Service unit’s total revenues increased 42% year over year to $1.8 billion.
Title open orders increased 15.2% to 191,300. Title closed orders increased 16.6% to 141,800. The average revenue per direct title order increased 22% to $16,100. In the Home Warranty segment, total revenues increased 3.3% to $114.6 million, lower than our estimate of $115.8 million. Pretax income of $16 million increased 80% year over year. The claim loss rate declined to 47% in the reported quarter. The pretax margin was 14.1%, expanding 600 bps year over year.
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RNR Q3 Earnings Beat on Lower Expenses, Strong Underwriting Results
Key Takeaways
RenaissanceRe Holdings Ltd. (RNR - Free Report) reported a third-quarter 2025 operating income of $15.62 per share, which outpaced the Zacks Consensus Estimate by a whopping 64.6%. The bottom line soared 52.7% year over year.
Total operating revenues of $2.9 billion tumbled 4.5% year over year. The top line missed the consensus mark by 3.7%.
The quarterly results benefited from a decline in expenses and strong underwriting performance, particularly in the Property segment. Improved net investment income also contributed to the upside. However, the upside was partly offset by lower net premiums earned across both segments and softer underwriting results in the Casualty & Specialty unit.
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 slipped 3.2% year over year to $2.3 billion, which fell short of our estimate of $2.5 billion.
Net premiums earned of $2.4 billion declined 5.8% year over year. The metric missed the Zacks Consensus Estimate of $2.56 billion and our estimate of $2.59 billion.
Net investment income came in at $438.4 million, which grew 3.4% year over year in the quarter under review, attributable to improved average invested assets in the fixed-maturity investment portfolios. The metric beat the consensus mark of $420 million and our estimate of $418.6 million.
Total expenses decreased 23.3% year over year to $1.7 billion, lower than our estimate of $2.6 billion. The year-over-year decline resulted from a decline in net claims and claim expenses incurred, acquisition costs and operational expenses.
RenaissanceRe reported an underwriting income of $770.2 million in the third quarter, which jumped 95.6% year over year. The combined ratio improved 1,640 basis points (bps) year over year to 68.4%.
Book value per common share was $231.23 as of Sept. 30, 2025, which improved 14.5% year over year. Annualized operating return on average common equity improved 650 bps year over year to 28.2%.
RenaissanceRe’s Segmental Update
Property Segment
The segment recorded gross premiums written of $733.3 million in the third quarter, which fell 7.3% year over year and missed our estimate of $793 million. The metric was hurt by the prior accident years' favorable development.
Net premiums earned decreased 5.8% year over year to $936.9 million. The reported figure lagged the Zacks Consensus Estimate of $1.06 billion and our estimate of $1.1 billion.
It generated an underwriting income of $791.5 million, which doubled year over year. The combined ratio improved 4,480 bps year over year to 15.5% 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’s gross premiums written dipped 1.2% year over year to $1.6 billion, lower than our estimate of $1.7 billion. The metric was hurt by reduced premiums derived from the casualty lines of business.
Net premiums earned totaled $1.5 billion, which tumbled 5.7% year over year in the quarter under review. The reported figure marginally missed the Zacks Consensus Estimate.
The segment incurred an underwriting loss of $21.3 million, wider than the prior-year quarter’s loss of $0.9 million. The combined ratio deteriorated 130 bps year over year to 101.4%.
RenaissanceRe’s Financial Position (As of Sept. 30, 2025)
RenaissanceRe exited the third quarter with cash and cash equivalents of $1.7 billion, which inched up 1.5% from the 2024-end level.
Total assets of $54.5 billion increased 7.5% from the figure at 2024-end.
Debt amounted to $2.2 billion, up 18.2% from the figure as of Dec. 31, 2024.
Total shareholders’ equity of $11.5 billion advanced 8.8% from the 2024-end level.
RenaissanceRe’s Share Repurchase Update
RenaissanceRe bought back common shares worth around $205.2 million in the third quarter. From Oct. 1, 2025, to Oct. 24, 2025, additional share repurchases of $100 million were made.
RNR’s Zacks Rank
RenaissanceRe currently carries a Zacks Rank #2 (Buy). 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 third-quarter 2025 results so far, the bottom-line results of W. R. Berkley Corporation (WRB - Free Report) , Chubb Limited (CB - Free Report) and First American Financial Corporation (FAF - Free Report) beat the respective Zacks Consensus Estimate.
W.R. Berkley reported third-quarter 2025 operating income of $1.10 per share, which beat the Zacks Consensus Estimate of $1.03 per share by 2.8%. The bottom line increased 18.3% year over year. Net premiums written were $3.4 billion, up 5.5% year over year. Net investment income grew 8.5% to $351.2 million. Operating revenues came in at $3.6 billion, up 8.2% year over year. The top line beat the consensus estimate by 0.4%. The consolidated combined ratio remained flat year over year at 90.9.
Net premiums written at the Insurance segment increased 5.1% year over year to $2.8 billion in the quarter. Our estimate was $2.9 billion. The combined ratio deteriorated 80 bps to 92.3. Net premiums written in the Reinsurance & Monoline Excess segment increased 8.6% year over year to $417.1 million. The combined ratio improved 560 bps to 87.
Chubb’s third-quarter 2025 core operating income of $7.49 per share beat the Zacks Consensus Estimate by 26%. The bottom line increased 30.9% year over year. Net premiums written improved 7.5% year over year to $14.8 billion in the quarter. Pre-tax net investment income was $1.65 billion, up 9.3% year over year. Revenues of $16.1 billion beat the consensus estimate by 1.6% and improved 7.4% year over year.
Property and casualty (P&C) underwriting income was $2.2 billion, up 55% year over year. The P&C combined ratio improved 590 basis points (bps) on a year-over-year basis to 81.8% in the quarter under review. The North America Commercial P&C Insurance unit’s net premiums written increased 2.9% year over year to $5.6 billion. Net premiums written in the North America Personal P&C Insurance segment climbed 8.1% year over year to $1.8 billion.
First American Financial reported third-quarter 2025 operating income per share of $1.70, which beat the Zacks Consensus Estimate by 19.7%. The bottom line increased 26.8% year over year. Operating revenues of $1.9 billion increased 40.7% year over year. The top line also beat the Zacks Consensus Estimate by 6.8%. Investment income was $163.8 million in the third quarter, up 11.7% year over year. The Title Insurance and Service unit’s total revenues increased 42% year over year to $1.8 billion.
Title open orders increased 15.2% to 191,300. Title closed orders increased 16.6% to 141,800. The average revenue per direct title order increased 22% to $16,100. In the Home Warranty segment, total revenues increased 3.3% to $114.6 million, lower than our estimate of $115.8 million. Pretax income of $16 million increased 80% year over year. The claim loss rate declined to 47% in the reported quarter. The pretax margin was 14.1%, expanding 600 bps year over year.