Shares of RenaissanceRe Holdings Ltd. RNR have risen 0.9% since it reported first-quarter 2025 results on April 23. The quarterly revenues were aided by strong premium growth in the property segment. Higher net investment income also benefited the quarterly performance. However, the upside was offset by an elevated expense level due to the California Wildfires.

RenaissanceRe reported a first-quarter 2025 operating loss of $1.49 per share, which missed the Zacks Consensus Estimate by 365.6%. Additionally, the bottom line declined from the year-ago figure of $12.18. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Total operating revenues of $3.13 billion advanced 10.3% year over year. The top line beat the consensus mark by 7.8%.

RenaissanceRe Holdings Ltd. Price, Consensus and EPS SurpriseRenaissanceRe 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 $4.16 billion rose 4.1% year over year and also beat our estimate of $4.1 billion.

Net premiums earned advanced 11.3% year over year to $2.7 billion. The metric beat the consensus mark by 9% and was higher than our estimate of $2.5 billion.

Net investment income was $405.4 million, which improved 3.7% year over year in the first quarter, attributable to an increase in average invested assets in the fixed-maturity investment portfolios. However, the figure missed the Zacks Consensus Estimate of $428.8 million and our estimate of $424.6 million.

Total expenses of $3.5 billion escalated 80.2% year over year and also came higher than our estimate of $2.9 billion. The year-over-year increase was due to elevated net claims and claim expenses incurred, coupled with higher acquisition costs.

RenaissanceRe reported an underwriting loss of $770.6 million, which plunged from an income of $540.7 million in the first quarter. The combined ratio jumped to 128.3% from 77.9% a year ago.

Book value per share was $196.18 as of March 31, 2025, which increased 14.8% year over year. Annualized operating return on average common equity deteriorated from 28.7% year over year to negative 2.9%.

RenaissanceRe’s Segmental Update

Property Segment

The segment recorded gross premiums written of $2.1 billion, which advanced 12.7% year over year and also surpassed our estimate of $1.9 billion. The metric benefited from increasing reinstatement premiums, specifically in California Wildfires.

Net premiums earned improved 33.3% year over year to $1.2 billion and also beat the Zacks Consensus Estimate of $956.5 million and our estimate of $955.2 million.

Story Continues

It reported an underwriting loss of $607.2 million in the first quarter against an income of $534.4 million a year ago. The combined ratio of 148.7% jumped from 42.9%, mainly due to the California Wildfires’ impact.

Casualty & Specialty Segment

The unit’s gross premiums written declined 3.6% year over year to $2 billion and also lagged our estimate of $2.2 billion due to changes in premium estimates.

Net premiums earned were $1.5 billion, which fell 2.3% year over year and also missed the Zacks Consensus Estimate by 3%.

The segment incurred an underwriting loss of $163.4 million against the prior-year quarter’s underwriting income of $6.3 million. The combined ratio of 111.1% jumped from 99.6% a year ago.

RenaissanceRe’s Financial Position (As of March 31, 2025)

RenaissanceRe exited the first quarter with cash and cash equivalents of $1.6 billion, which tumbled from the 2024-end level of $1.7 billion. Total assets of $53.6 billion increased 5.8% from the figure at 2024-end.

Debt amounted to $2.8 billion, up from $1.9 billion as of Dec. 31, 2024.

Total shareholders’ equity of $10.3 billion declined from the 2024-end level of $10.6 billion.

RenaissanceRe’s Capital Deployment Update

RenaissanceRe bought back common shares worth $361.1 million in the first quarter. From April 1, 2025, to April 21, 2025, additional share repurchases of $65.3 million were made.

RNR’s Zacks Rank & Key Picks

RNR currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Finance space are Root Inc. ROOT, Kingstone Companies Inc KINS and Heritage Insurance Holdings Inc. HRTG, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Root’s current-year earnings of 18 cents per share has witnessed one upward revision in the past month against none in the opposite direction. Root beat earnings estimates in each of the trailing four quarters, with the average surprise being 195.3%. The consensus estimate for current-year revenues is pegged at $1.29 billion, implying 9.2% year-over-year growth.

The Zacks Consensus Estimate for Kingstone Companies’ current-year earnings is pegged at $1.90 per share. It has remained stable over the past week. The consensus estimate for Kingstone Companies’ current-year revenues is pegged at $214 million, suggesting 37.9% year-over-year growth.

The Zacks Consensus Estimate for Heritage Insurance’s current-year earnings of $2.43 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 three of the trailing four quarters and missed once, with the average surprise being 328.6%. The consensus estimate for current-year revenues is pegged at $870.2 million, calling for 6.5% year-over-year growth.

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