RenaissanceRe's Q3 Earnings Beat Despite Rising Claims Costs

Zacks11-09

RenaissanceRe Holdings Ltd. RNR reported third-quarter 2024 operating income of $10.23 per share, which surpassed the Zacks Consensus Estimate by 29.7%. The bottom line advanced 21.6% year over year. ...

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The bottom line advanced 21.6% year over year.\n...</p>\n\n<a href=\"https://finance.yahoo.com/news/renaissanceres-q3-earnings-beat-despite-175900153.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>RenaissanceRe's Q3 Earnings Beat Despite Rising Claims Costs</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nRenaissanceRe's Q3 Earnings Beat Despite Rising Claims Costs\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-09 01:59 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/renaissanceres-q3-earnings-beat-despite-175900153.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>RenaissanceRe Holdings Ltd. RNR reported third-quarter 2024 operating income of $10.23 per share, which surpassed the Zacks Consensus Estimate by 29.7%. The bottom line advanced 21.6% year over year.\n...</p>\n\n<a href=\"https://finance.yahoo.com/news/renaissanceres-q3-earnings-beat-despite-175900153.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"RNR","symbol_name":"RenaissanceRe Holdings Ltd","start_time":0,"source_url":"https://finance.yahoo.com/news/renaissanceres-q3-earnings-beat-despite-175900153.html","article_id":"2482432458","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/rYs6n_yNZ90Bj4gg9feY6g--~B/aD00NjM7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/464ae3a2975c18670c3b5569efe4b3a5"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2482432458","pubTimestamp":1731088740,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"RenaissanceRe Holdings Ltd. RNR reported third-quarter 2024 operating income of $10.23 per share, which surpassed the Zacks Consensus Estimate by 29.7%. The bottom line advanced 21.6% year over year.Total operating revenues soared 45.7% year over year to $3 billion. The top line beat the consensus mark by 3.7%.Its shares lost 4.4% on Thursday. Despite the earnings beat, the quarterly results were hurt by a rise in total expenses due to increased claims and acquisition costs, alongside a deterioration in combined ratios, particularly in the Casualty and Specialty segment. Nevertheless, the downside was partly offset by strong premium growth, supported by the Validus acquisition and organic growth, as well as improved net investment income.RenaissanceRe Holdings Ltd. Price, Consensus and EPS Surprise. RenaissanceRe Holdings Ltd. price-consensus-eps-surprise-chart | RenaissanceRe Holdings Ltd. Quote. RenaissanceRe’s underwriting income amounted to $393.8 million, which grew 2.1% year over","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"RNR":"RenaissanceRe Holdings Ltd","AXS":"埃克斯资本","CB":"安达保险"},"translate_title":"尽管索赔成本上升，RenaissanceRe第三季度盈利仍超出预期","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"RNR":1,"AXS":0.9,"CB":0.9},"content_text":"RenaissanceRe Holdings Ltd. RNR reported third-quarter 2024 operating income of $10.23 per share, which surpassed the Zacks Consensus Estimate by 29.7%. The bottom line advanced 21.6% year over year.\nTotal operating revenues soared 45.7% year over year to $3 billion. The top line beat the consensus mark by 3.7%.\nIts shares lost 4.4% on Thursday. Despite the earnings beat, the quarterly results were hurt by a rise in total expenses due to increased claims and acquisition costs, alongside a deterioration in combined ratios, particularly in the Casualty and Specialty segment. Nevertheless, the downside was partly offset by strong premium growth, supported by the Validus acquisition and organic growth, as well as improved net investment income.\n\nRenaissanceRe Holdings Ltd. Price, Consensus and EPS Surprise\n  \nRenaissanceRe Holdings Ltd. price-consensus-eps-surprise-chart | RenaissanceRe Holdings Ltd. Quote\n\nRNR’s Quarterly Operational Update\nGross premiums written of $2.4 billion improved 48.3% year over year and were higher than our estimate of $1.9 billion.  \nNet premiums earned climbed 47.1% year over year to $2.6 billion. The metric surpassed the consensus mark of $2.5 billion and our estimate of $2.4 billion. \nNet investment income was $423.9 million, which advanced 28.8% year over year on the back of an increase in average invested assets and higher-yielding assets in the fixed maturity investments portfolios. Also, the figure surpassed the Zacks Consensus Estimate of $417 million and our estimate of 416.5 million.  \nTotal expenses escalated 58.8% year over year to $2.24 billion but were lower than our estimate of $2.25 billion. The year-over-year increase resulted from increased net claims and claim expenses incurred coupled with higher acquisition and operational expenses.\nRenaissanceRe’s underwriting income amounted to $393.8 million, which grew 2.1% year over year. The combined ratio deteriorated 680 basis points (bps) year over year to 84.8%.  \nBook value per share was $202.01 as of Sept. 30, 2024, which climbed 51.2% year over year. Annualized operating return on average common equity of 21.7% deteriorated 360 bps year over year.\nRNR’s Segmental Update\nProperty Segment\nThe segment’s gross premiums written surged 54.7% year over year to $790.7 million, higher than our estimate of $606.3 million. The metric benefited on the back of higher reinstatement premiums, along with organic growth, new business opportunities and the renewal of accounts acquired through the Validus buyout. \nNet premiums earned of $994.8 million advanced 30.8% year over year and surpassed the Zacks Consensus Estimate of $939 million and our estimate of $926.1 million.\nUnderwriting income grew 10.9% year over year to $394.7 million. The combined ratio of 60.3% deteriorated 710 bps year over year.\nCasualty and Specialty Segment\nThe unit recorded gross premiums written of $1.61 billion, which climbed 45.3% year over year and beat our estimate of $1.32 billion. The metric was aided by business renewals from the Validus Acquisition and organic growth within legacy lines. \nNet premiums earned surged 59.5% year over year to $1.59 billion, higher than the Zacks Consensus Estimate of $1.53 billion and our estimate of $1.44 billion.\nThe segment incurred an underwriting loss of $0.9 million against the prior-year quarter’s underwriting income of $29.8 million. The combined ratio deteriorated 310 bps year over year to 100.1%.\nRNR’s Financial Position (as of Sept. 30, 2024)\nRenaissanceRe exited the third quarter with cash and cash equivalents of $1.6 billion, which fell 16.2% from the 2023-end level. Total assets of $52.8 billion increased 7.7% from the figure at 2023-end. \nDebt amounted to $1.9 billion, which dipped 1.2% from the figure as of Dec. 31, 2023. \nTotal shareholders’ equity of $11.2 billion rose 18.9% from the 2023-end level.\nRNR’s Capital Deployment Update\nRNR bought back common shares worth $106.8 million in the third quarter. On Nov. 6, 2024, the board authorized an increase to the company's share repurchase program, thereby raising the total authorized amount to $750 million.\nManagement declared a quarterly dividend of 39 cents per share.\nRNR’s 4Q24 Guidance\nHurricane Milton is projected to have a $275 million net negative impact on net income (loss) attributable to common shareholders in the fourth quarter of 2024.\nRNR’s Zacks Rank\nRenaissanceRe currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nPerformance of Other Insurers\nOf the insurance industry players that have reported third-quarter 2024 results so far, the bottom-line results of AXIS Capital Holdings Limited AXS, Chubb Limited CB and Arch Capital Group Ltd. ACGL beat the respective Zacks Consensus Estimate.\nAXIS Capital posted third-quarter 2024 operating income of $2.71 per share, which beat the Zacks Consensus Estimate by 8.4%. The bottom line increased 16% year over year. Total operating revenues of $1.5 billion beat the consensus estimate by 0.4%. The top line rose 6.2% year over year. Net premiums written increased 27% to $1.2 billion, attributable to a 10% increase in the insurance segment and 189% in the reinsurance segment. Net investment income increased 33% year over year to $205 million. \nPre-tax catastrophe and weather-related losses and net of reinsurance were $78 million. AXIS Capital’s underwriting income of $135.1 million decreased 8% year over year. The combined ratio deteriorated 40 bps to 93.1. The Zacks Consensus Estimate was 94, while our estimate was 93.4. In the Insurance segment, net premiums earned increased 15.6% year over year to $1 billion. Meanwhile, the metric in the Reinsurance unit decreased 21.5% year over year to $342.8 million. \nChubb’s third-quarter core operating income of $5.72 per share beat the Zacks Consensus Estimate by 16%. The bottom line increased 15.6% year over year. Net premiums written improved 5.5% year over year to $13.8 billion. Pre-tax net investment income was $1.5 billion, up 14.7% year over year. Revenues of $15 billion missed the consensus estimate by 1.5% and improved 6.5% year over year.\nProperty and casualty (P&C) underwriting income was $1.4 billion, up 11.7% year over year. Chubb incurred a pre-tax P&C catastrophe loss, net of reinsurance and including reinstatement premiums, of $765 million, which was wider than the year-ago catastrophe loss of $670 million. The P&C combined ratio improved 70 bps on a year-over-year basis to 87.7%. In the North America Commercial P&C Insurance segment, net premiums written increased 7.2% year over year to $5.5 billion. \nArch Capital reported third-quarter operating income of $1.99 per share, which beat the Zacks Consensus Estimate by 2.6%. The bottom line decreased 13.6% year over year. Gross premiums written improved 20.2% year over year to $5.4 billion. Net premiums written climbed 20.6% year over year to $4 billion. Pre-tax net investment income increased 48.3% year over year to $399 million. Operating revenues of $4.4 billion rose 24.6% year over year. It beat the Zacks Consensus Estimate by 8.1%.\nPre-tax current accident year catastrophic losses, net of reinsurance and reinstatement premiums, were $450 million, wider than a loss of $180 million incurred in the year-ago quarter.  Arch Capital’s underwriting income decreased 25.4% year over year to $538 million. The combined ratio deteriorated 870 bps to 86.6. In the Insurance segment, net premiums written climbed 19.6% year over year to $1.8 billion. The unit’s underwriting income of $120 million was 7% lower than the year-ago number.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nChubb Limited (CB) : Free Stock Analysis Report\nRenaissanceRe Holdings Ltd. (RNR) : Free Stock Analysis Report\nAxis Capital Holdings Limited (AXS) : Free Stock Analysis Report\nArch Capital Group Ltd. (ACGL) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2482432458"}