Compared to Estimates, RenaissanceRe (RNR) Q4 Earnings: A Look at Key Metrics
RenaissanceRe (RNR) reported $2.63 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 42.5%. EPS of $11.77 for the same period compares to $7.33 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $2.2 billion, representing a surprise of +19.60%. The company delivered an EPS surprise of +44.77%, with the consensus EPS estimate being $8.13.
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.
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: 43.5% compared to the 51.9% average estimate based on four analysts.
Underwriting Expense Ratio: 32.5% versus 30.7% estimated by four analysts on average.
Combined Ratio: 76% versus 83.3% estimated by four analysts on average.
Net Claims and Claim Expense Ratio - calendar year - Casualty and Specialty Segment: 62.7% versus the three-analyst average estimate of 64.1%.
Underwriting Expense Ratio - Casualty and Specialty Segment: 34.6% versus the three-analyst average estimate of 32%.
Combined Ratio - Casualty and Specialty Segment: 97.3% versus the three-analyst average estimate of 96%.
Revenues- Net premiums earned: $2.25 billion compared to the $1.83 billion average estimate based on four analysts. The reported number represents a change of +38.5% year over year.
Revenues- Equity in earnings (losses) of other ventures: $15.40 million versus $6.91 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +80.8% change.
Revenues- Net investment income: $376.96 million versus $367.56 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +78.5% change.
Revenues- Other income (loss): $0.14 million versus the three-analyst average estimate of $2.22 million. The reported number represents a year-over-year change of -98.1%.
Net premiums earned- Casualty and Specialty: $1.37 billion versus the three-analyst average estimate of $1.01 billion. The reported number represents a year-over-year change of +45.9%.
Net premiums earned- Property: $884.32 million versus $720.20 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +28.5% change.
View all Key Company Metrics for RenaissanceRe here>>>
Shares of RenaissanceRe have returned +9.5% over the past month versus the Zacks S&P 500 composite's +3.4% 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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RenaissanceRe Holdings Ltd. (RNR) : Free Stock Analysis Report
