RenaissanceRe Holdings Full Year 2023 Earnings: EPS Beats Expectations, Revenues Lag
RenaissanceRe Holdings (NYSE:RNR) Full Year 2023 Results
Key Financial Results
Revenue: US$9.18b (up 79% from FY 2022).
Net income: US$2.53b (up from US$1.10b loss in FY 2022).
Profit margin: 28% (up from net loss in FY 2022). The move to profitability was driven by higher revenue.
EPS: US$53.18 (up from US$25.50 loss in FY 2022).
RNR Profitability Indicators
Combined ratio: 77.9% (down from 97.7% in FY 2022).
All figures shown in the chart above are for the trailing 12 month (TTM) period
RenaissanceRe Holdings EPS Beats Expectations, Revenues Fall Short
Revenue missed analyst estimates by 1.7%. Earnings per share (EPS) exceeded analyst estimates by 77%.
The primary driver behind last 12 months revenue was the Casualty and Specialty segment contributing a total revenue of US$4.38b (48% of total revenue). Notably, cost of sales worth US$5.45b amounted to 59% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling US$699.0m were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how RNR's revenue and expenses shape its earnings.
Looking ahead, revenue is forecast to grow 6.2% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Insurance industry in the US.
Performance of the American Insurance industry.
The company's shares are up 9.3% from a week ago.
Risk Analysis
You still need to take note of risks, for example - RenaissanceRe Holdings has 2 warning signs (and 1 which is significant) we think you should know about.
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