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RenaissanceRe Up 44.5% in a Year: Further Upside Left?
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RenaissanceRe Holdings Ltd. (RNR - Free Report) has been favored by investors on the back of revenue growth and inorganic strategies.
Shares of the Zacks Rank #3 (Hold) company have surged 44.5% in a year’s time, outperforming the industry’s growth of 5.7%. Increasing premiums and inorganic growth story should continue to drive the stock going forward.
The company’s return on equity — a profitability measure — came in at 8.2%, higher than the industry's average of 6.9%.
Is the Bull Run Likely to Continue?
This reinsurance and insurance products provider has a decent record of delivering positive earnings surprises in three of the last four quarters, the average beat being 23.3%.
The company has been witnessing stable gross premiums written growth over the past few years. Premiums surged nearly 41.2% in the first nine months of 2019 on the back of solid segmental contributions. The constant increase in premiums is likely to drive the top line further.
The company’s solid inorganic growth profile also impresses. It has been undertaking measures to streamline its operations. Meanwhile, it is also acquiring and expanding businesses, which provide scope for growth. In March 2019, the company bought Tokio Millennium Re for $1.5 billion to increase its scale and boost portfolio.
RenaissanceRe has been witnessing growing free cash flow over the past few years. In the first nine months of 2019, cash flow from operations was up 42.3% year over year. The company has also been deploying excess capital to business over the last several quarters. It has been raising dividend since the past many years. In February 2019, the company again increased its payout by 3.1%, which should buoy investor’s confidence in the stock. We believe, the company’s financial strength will continue to retain investors’ faith.
RLI Corporation underwrites property and casualty insurance in the United States and around the globe. The company delivered a positive surprise of 154.9% in the last reported quarter. It sports a Zacks Rank #1 (Strong Buy).
First American Financial provides financial services and issues title insurance policies. The company came up with a positive surprise of 12.2% in the last reported quarter. It is a Zacks #1 Ranked player.
NMI Holdings provides private mortgage guaranty insurance services. The company has a Zacks Rank of 1 and average four-quarter beat of 8.4%.
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A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time. See 8 breakthrough stocks now>>
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RenaissanceRe Up 44.5% in a Year: Further Upside Left?
RenaissanceRe Holdings Ltd. (RNR - Free Report) has been favored by investors on the back of revenue growth and inorganic strategies.
Shares of the Zacks Rank #3 (Hold) company have surged 44.5% in a year’s time, outperforming the industry’s growth of 5.7%. Increasing premiums and inorganic growth story should continue to drive the stock going forward.
The company’s return on equity — a profitability measure — came in at 8.2%, higher than the industry's average of 6.9%.
Is the Bull Run Likely to Continue?
This reinsurance and insurance products provider has a decent record of delivering positive earnings surprises in three of the last four quarters, the average beat being 23.3%.
The company has been witnessing stable gross premiums written growth over the past few years. Premiums surged nearly 41.2% in the first nine months of 2019 on the back of solid segmental contributions. The constant increase in premiums is likely to drive the top line further.
The company’s solid inorganic growth profile also impresses. It has been undertaking measures to streamline its operations. Meanwhile, it is also acquiring and expanding businesses, which provide scope for growth. In March 2019, the company bought Tokio Millennium Re for $1.5 billion to increase its scale and boost portfolio.
RenaissanceRe has been witnessing growing free cash flow over the past few years. In the first nine months of 2019, cash flow from operations was up 42.3% year over year. The company has also been deploying excess capital to business over the last several quarters. It has been raising dividend since the past many years. In February 2019, the company again increased its payout by 3.1%, which should buoy investor’s confidence in the stock. We believe, the company’s financial strength will continue to retain investors’ faith.
Stocks to Consider
Investors interested in the insurance industry can check out some better-ranked stocks like RLI Corp. (RLI - Free Report) , First American Financial Corporation (FAF - Free Report) and NMI Holdings Inc (NMIH - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.
RLI Corporation underwrites property and casualty insurance in the United States and around the globe. The company delivered a positive surprise of 154.9% in the last reported quarter. It sports a Zacks Rank #1 (Strong Buy).
First American Financial provides financial services and issues title insurance policies. The company came up with a positive surprise of 12.2% in the last reported quarter. It is a Zacks #1 Ranked player.
NMI Holdings provides private mortgage guaranty insurance services. The company has a Zacks Rank of 1 and average four-quarter beat of 8.4%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>