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Here's What Key Metrics Tell Us About RenaissanceRe (RNR) Q1 Earnings

Zacks Equity Research
·3-min read

RenaissanceRe (RNR) reported $2.83 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 46.8%. EPS of $12.18 for the same period compares to $8.16 a year ago.

The reported revenue represents a surprise of +5.96% over the Zacks Consensus Estimate of $2.68 billion. With the consensus EPS estimate being $9.86, the EPS surprise was +23.53%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

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Here is how RenaissanceRe performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Net Claims and Claim Expense Ratio: 47.7% versus 49.8% estimated by four analysts on average.

  • Underwriting Expense Ratio: 30.2% versus the four-analyst average estimate of 31.7%.

  • Combined Ratio: 77.9% compared to the 82.2% average estimate based on four analysts.

  • Net Claims and Claim Expense Ratio - calendar year - Casualty and Specialty Segment: 67.1% compared to the 63.8% average estimate based on three analysts.

  • Underwriting Expense Ratio - Casualty and Specialty Segment: 32.5% versus 31.6% estimated by three analysts on average.

  • Combined Ratio - Casualty and Specialty Segment: 99.6% versus the three-analyst average estimate of 95.3%.

  • Revenues- Net premiums earned: $2.44 billion versus the four-analyst average estimate of $2.29 billion. The reported number represents a year-over-year change of +45.4%.

  • Revenues- Equity in earnings (losses) of other ventures: $14.13 million versus the four-analyst average estimate of $6.04 million. The reported number represents a year-over-year change of +48.2%.

  • Revenues- Net investment income: $390.78 million versus the four-analyst average estimate of $384.67 million. The reported number represents a year-over-year change of +53.6%.

  • Net premiums earned- Property: $936.08 million versus the three-analyst average estimate of $816.79 million. The reported number represents a year-over-year change of +36.2%.

  • Net premiums earned- Casualty and Specialty: $1.51 billion versus $1.42 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +51.8% change.

  • Revenues- Other income (loss): -$0.05 million versus $2 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -98.8% change.

View all Key Company Metrics for RenaissanceRe here>>>

Shares of RenaissanceRe have returned -5.7% over the past month versus the Zacks S&P 500 composite's -2.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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Zacks Investment Research