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Here's Why RenaissanceRe Shares Are Attracting Prudent Investors Now
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Key Takeaways
RNR stock rose 10% in 6 months, outperforming the industry's 1.5% gain on stronger premiums and income growth.
RNR's 2025 earnings estimate rose to $34.61 per share, with two upward revisions in the past 30 days.
RNR boosted scale and profitability with the Validus Re acquisition and continues heavy share buybacks.
RenaissanceRe Holdings Ltd. (RNR - Free Report) primarily provides property, casualty and specialty reinsurance and certain insurance solutions to its customers. The company operates via two reportable segments: Property, and Casualty and Specialty. Also, it has an Other category, which mainly comprises its investment unit. In the past six months, shares of RNR have grown 10%, outperforming the industry’s 1.5% rise.
RenaissanceRe — with a market capitalization of $12.6 billion — is well-poised to grow, backed by its increasing premium, investment income, cash generation ability and strategic acquisitions and partnerships. The rise in returns from the fixed maturity portfolio and improving underwriting results add further momentum.
Courtesy of solid prospects, this Zacks Rank #1 (Strong Buy) stock is worth adding to your portfolio at the moment.
Let’s delve deeper.
Where Do RNR’s Estimates Stand?
The Zacks Consensus Estimate for RenaissanceRe’s 2025 earnings is pegged at $34.61 per share and has witnessed two upward estimate revisions in the past 30 days against none in the opposite direction. Furthermore, the consensus mark for revenues is pegged at $12.2 billion for 2025, indicating 3.4% year-over-year growth. It beat earnings estimates in three of the past four quarters and missed once.
RenaissanceRe Holdings Ltd. Price, Consensus and EPS Surprise
RenaissanceRe has benefited from strong momentum in net premiums earned, thanks to growth across both of its segments. The metric grew 35.1% in 2024 and remained stable year over year in the first nine months of 2025. Its total revenues rose 5% year over year in the first nine months of 2025. We expect the metric to increase 9.8% year over year in 2025. Strong underwriting results contribute to profit growth, which is evident in recent upward estimate revisions.
RenaissanceRe's acquisition of Validus Re and related businesses from AIG enhanced the scale of its global property and casualty reinsurance business and boosted profitability. The company also optimizes its portfolio by divesting non-core assets. RNR expects continued opportunities to build an attractive portfolio at the Jan. 1, 2026, renewal through early client engagement, careful risk selection and differentiated structuring. Its net investment income increased 2.6% year over year in the first three quarters of 2025.
RNR’s robust cash generation abilities have enabled it to continue elevating shareholder value through share buybacks and dividend payouts. In the first nine months of 2025, the company rewarded its shareholders with share buybacks of $939.6 million. Additionally, from Oct. 1 to Oct. 24, 2025, it repurchased shares worth $100 million again. In November 2025, management approved a renewal of RenaissanceRe’s share repurchase program, increasing the total authorization to $750 million. This amount includes the remaining funds from previous authorizations.
Moreover, RNR is currently trading at a discount compared to the industry average. The stock is currently trading at 1.17X, trailing 12-month tangible book value, which compares to 1.51X for the industry, indicating undervaluation. The company has a Value Score of B.
Risks for RNR Stock
There are some factors, however, that investors should keep a careful eye on.
RenaissanceRe faces escalating expenses due to higher net claims, claim expenses and operational expenses. Total expenses rose 44.4% in 2024, followed by a 12.6% year-over-year rise in the first nine months of 2025. We expect the metric to rise 8.7% year over year in 2025. The rising expenses pose a risk to the company’s profit margins.
As of Sept. 30, 2025, RenaissanceRe carried $2.2 billion in debt, with a total debt-to-capital ratio of 16.2, above the industry average of 15.6. Elevated debt levels have driven up interest expenses, which rose 28.1% year over year in 2024 and 26.9% in the first nine months of 2025. This growing interest burden could weigh on margins.
The Zacks Consensus Estimate for The Travelers Companies’ current-year earnings of $24.75 per share has witnessed 12 upward revisions in the past 60 days against none in the opposite direction. The Travelers Companies beat earnings estimates in each of the trailing four quarters, with the average surprise being 89.3%. The consensus estimate for current-year revenues is pegged at $48.8 billion, implying 5.1% year-over-year growth.
The Zacks Consensus Estimate for Heritage Insurance’s current-year earnings of $5.14 per share has witnessed two upward revisions in the past 60 days against no movement in the opposite direction. Heritage Insurance beat earnings estimates in each of the trailing four quarters, with the average surprise being 100.1%. The consensus estimate for current-year revenues is pegged at $844.6 million, calling for 3.4% year-over-year growth.
The Zacks Consensus Estimate for Allstate’s current-year earnings is pegged at $28.21 per share and has witnessed three upward revisions in the past 30 days against no movement in the opposite direction. Allstate beat earnings estimates in each of the trailing four quarters, with the average surprise being 47.3%. The consensus estimate for current-year revenues is pegged at $69 billion, calling for 7.2% year-over-year growth.
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Here's Why RenaissanceRe Shares Are Attracting Prudent Investors Now
Key Takeaways
RenaissanceRe Holdings Ltd. (RNR - Free Report) primarily provides property, casualty and specialty reinsurance and certain insurance solutions to its customers. The company operates via two reportable segments: Property, and Casualty and Specialty. Also, it has an Other category, which mainly comprises its investment unit. In the past six months, shares of RNR have grown 10%, outperforming the industry’s 1.5% rise.
RenaissanceRe — with a market capitalization of $12.6 billion — is well-poised to grow, backed by its increasing premium, investment income, cash generation ability and strategic acquisitions and partnerships. The rise in returns from the fixed maturity portfolio and improving underwriting results add further momentum.
Courtesy of solid prospects, this Zacks Rank #1 (Strong Buy) stock is worth adding to your portfolio at the moment.
Let’s delve deeper.
Where Do RNR’s Estimates Stand?
The Zacks Consensus Estimate for RenaissanceRe’s 2025 earnings is pegged at $34.61 per share and has witnessed two upward estimate revisions in the past 30 days against none in the opposite direction. Furthermore, the consensus mark for revenues is pegged at $12.2 billion for 2025, indicating 3.4% year-over-year growth. It beat earnings estimates in three of the past four quarters and missed once.
RenaissanceRe Holdings Ltd. Price, Consensus and EPS Surprise
RenaissanceRe Holdings Ltd. price-consensus-eps-surprise-chart | RenaissanceRe Holdings Ltd. Quote
RNR’s Growth Drivers
RenaissanceRe has benefited from strong momentum in net premiums earned, thanks to growth across both of its segments. The metric grew 35.1% in 2024 and remained stable year over year in the first nine months of 2025. Its total revenues rose 5% year over year in the first nine months of 2025. We expect the metric to increase 9.8% year over year in 2025. Strong underwriting results contribute to profit growth, which is evident in recent upward estimate revisions.
RenaissanceRe's acquisition of Validus Re and related businesses from AIG enhanced the scale of its global property and casualty reinsurance business and boosted profitability. The company also optimizes its portfolio by divesting non-core assets. RNR expects continued opportunities to build an attractive portfolio at the Jan. 1, 2026, renewal through early client engagement, careful risk selection and differentiated structuring. Its net investment income increased 2.6% year over year in the first three quarters of 2025.
RNR’s robust cash generation abilities have enabled it to continue elevating shareholder value through share buybacks and dividend payouts. In the first nine months of 2025, the company rewarded its shareholders with share buybacks of $939.6 million. Additionally, from Oct. 1 to Oct. 24, 2025, it repurchased shares worth $100 million again. In November 2025, management approved a renewal of RenaissanceRe’s share repurchase program, increasing the total authorization to $750 million. This amount includes the remaining funds from previous authorizations.
Moreover, RNR is currently trading at a discount compared to the industry average. The stock is currently trading at 1.17X, trailing 12-month tangible book value, which compares to 1.51X for the industry, indicating undervaluation. The company has a Value Score of B.
Risks for RNR Stock
There are some factors, however, that investors should keep a careful eye on.
RenaissanceRe faces escalating expenses due to higher net claims, claim expenses and operational expenses. Total expenses rose 44.4% in 2024, followed by a 12.6% year-over-year rise in the first nine months of 2025. We expect the metric to rise 8.7% year over year in 2025. The rising expenses pose a risk to the company’s profit margins.
As of Sept. 30, 2025, RenaissanceRe carried $2.2 billion in debt, with a total debt-to-capital ratio of 16.2, above the industry average of 15.6. Elevated debt levels have driven up interest expenses, which rose 28.1% year over year in 2024 and 26.9% in the first nine months of 2025. This growing interest burden could weigh on margins.
Other Key Picks
Some other top-ranked stocks in the broader finance space are The Travelers Companies, Inc. (TRV - Free Report) , Heritage Insurance Holdings Inc. (HRTG - Free Report) and The Allstate Corporation (ALL - Free Report) , each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for The Travelers Companies’ current-year earnings of $24.75 per share has witnessed 12 upward revisions in the past 60 days against none in the opposite direction. The Travelers Companies beat earnings estimates in each of the trailing four quarters, with the average surprise being 89.3%. The consensus estimate for current-year revenues is pegged at $48.8 billion, implying 5.1% year-over-year growth.
The Zacks Consensus Estimate for Heritage Insurance’s current-year earnings of $5.14 per share has witnessed two upward revisions in the past 60 days against no movement in the opposite direction. Heritage Insurance beat earnings estimates in each of the trailing four quarters, with the average surprise being 100.1%. The consensus estimate for current-year revenues is pegged at $844.6 million, calling for 3.4% year-over-year growth.
The Zacks Consensus Estimate for Allstate’s current-year earnings is pegged at $28.21 per share and has witnessed three upward revisions in the past 30 days against no movement in the opposite direction. Allstate beat earnings estimates in each of the trailing four quarters, with the average surprise being 47.3%. The consensus estimate for current-year revenues is pegged at $69 billion, calling for 7.2% year-over-year growth.