RenaissanceRe (RNR) Up 4.3% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for RenaissanceRe (RNR). Shares have added about 4.3% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is RenaissanceRe due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for RenaissanceRe Holdings Ltd. before we dive into how investors and analysts have reacted as of late.RNR Q2 Earnings Beat on Strong Property Underwriting ResultsRenaissanceRe reported a second-quarter 2025 operating income of $12.29 per share, which beat the Zacks Consensus Estimate by 19.6%. However, the bottom line dipped 1% year over year. Total operating revenues declined 4.2% year over year to $2.8 billion. The top line fell short of the consensus mark by 4.4%.The quarterly results benefited on the back of strong underwriting performance, particularly in the Property segment, where improved combined ratios and favorable reserve development boosted profitability. Investment income growth and a declining expense level also contributed to the upside. However, the upside was partly offset by lower net premiums earned, underwriting losses in the Casualty & Specialty segment and elevated catastrophe losses.RenaissanceRe’s Quarterly Operational UpdateGross premiums written of $3.42 billion dipped marginally year over year but came slightly higher than our estimate of $3.41 billion.   Net premiums earned decreased 5.1% year over year to $2.4 billion. The metric missed the Zacks Consensus Estimate of $2.55 billion and our estimate of $2.52 billion.  Net investment income of $413.1 million inched up 0.6% year over year in the quarter under review on the back of an increase in average invested assets in the fixed-maturity investment portfolios. The figure surpassed the consensus mark of $408 million and our estimate of $411.2 million.   Total expenses were $1.9 billion, which declined 12% year over year and came lower than our estimate of $2.1 billion. The year-over-year decline was attributed to lower net claims and claim expenses incurred, acquisition costs and corporate expenses. RenaissanceRe’s underwriting income climbed 25.5% year over year to $601.7 million in the second quarter. The combined ratio of 75.1% improved 600 basis points (bps) year over year.  Book value per share was $212.15 as of June 30, 2025, which increased 17.9% year over year. Annualized operating return on average common equity deteriorated 400 bps year over year to 24.2%.RenaissanceRe’s Segmental UpdateProperty SegmentThe segment’s gross premiums written slipped 1.2% year over year to $1.7 billion in the second quarter due to higher catastrophe losses and rate decreases in the excess and surplus business. The metric lagged our estimate of $1.8 billion. Net premiums earned of $868 million tumbled 11.5% year over year, lower than the Zacks Consensus Estimate of $1.06 billion and our estimate of $1.02 billion.It generated an underwriting income of $630.2 million, which advanced 39.5% year over year. The combined ratio improved 2,650 bps year over year to 27.4% on the back of a decline in current accident year net losses and higher prior accident year net favorable development.Casualty & Specialty SegmentThe unit recorded gross premiums written of $1.7 billion in the quarter under review, which inched up 1% year over year and beat our estimate of $1.6 billion. The metric was aided by higher premiums derived from the credit and specialty lines of business. Net premiums earned dipped 1% year over year to $1.54 billion, which came marginally higher than the Zacks Consensus Estimate of $1.51 billion and our estimate of $1.49 billion. The segment incurred an underwriting loss of $28.5 million against the prior-year quarter’s underwriting income of $27.6 million. The combined ratio deteriorated 360 bps year over year to 101.8%.RenaissanceRe’s Financial Position (As of June 30, 2025)RenaissanceRe exited the second quarter with cash and cash equivalents of $1.4 billion, which fell 14.8% from the 2024-end level. Total assets of $54.7 billion increased 7.9% from the figure at 2024-end. Debt amounted to $2.3 billion, up 20% from the figure as of Dec. 31, 2024. Total shareholders’ equity of $10.8 billion improved 2.1% from the 2024-end level.RenaissanceRe’s Share Repurchase UpdateRenaissanceRe bought back common shares worth $376.4 million in the second quarter. From July 1, 2025, to July 21, 2025, additional share repurchases of $70.2 million were made.How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in estimates review.The consensus estimate has shifted 12.57% due to these changes.VGM ScoresAt this time, RenaissanceRe has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the second quintile for value investors.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, RenaissanceRe has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerRenaissanceRe belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, Chubb (CB), has gained 3.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.Chubb reported revenues of $14.81 billion in the last reported quarter, representing a year-over-year change of +6.9%. EPS of $6.14 for the same period compares with $5.38 a year ago.For the current quarter, Chubb is expected to post earnings of $5.39 per share, indicating a change of -5.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.4% over the last 30 days.Chubb has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>Want 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 RenaissanceRe Holdings Ltd. (RNR): Free Stock Analysis Report Chubb Limited (CB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks