RenaissanceRe's Q4 net income rises, combined ratio improves

Overview

• Reinsurance provider's Q4 net income rises, driven by strong underwriting and investment results

• Company's Q4 combined ratio improved to 71.4%, reflecting strong underwriting performance

• Company repurchased $650.5 mln of shares in Q4, reducing share count by 5.5%

Outlook

• Company expects strong fee and investment income to drive long-term shareholder value in 2026

• RenaissanceRe aims to generate returns exceeding cost of capital with targeted underwriting

• Company plans robust capital management to support growth in 2026

Result Drivers

• UNDERWRITING PERFORMANCE - Q4 combined ratio improved to 71.4%, driven by strong underwriting results, particularly in the property segment despite Hurricane Melissa's impact

• INVESTMENT GAINS - Total investment result of $654.0 mln, including significant gains from commodity and equity-related investments

• FEE INCOME GROWTH - Fee income increased by 31.8% from Q4 2024, driven by strong performance fee income

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 12 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the reinsurance peer group is "hold"

• Wall Street's median 12-month price target for Renaissancere Holdings Ltd is $289.00, about 1.6% above its February 2 closing price of $284.50

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nBw2d1W30a

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.