RenaissanceRe (RNR) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended June 2023, RenaissanceRe (RNR) reported revenue of $2.08 billion, up 33.1% over the same period last year. EPS came in at $8.79, compared to $5.51 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.97 billion, representing a surprise of +5.60%. The company delivered an EPS surprise of +15.96%, with the consensus EPS estimate being $7.58.
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: 52.2% versus the three-analyst average estimate of 49.36%.
Underwriting Expense Ratio: 28.1% versus the three-analyst average estimate of 29.5%.
Combined Ratio: 80.3% versus the three-analyst average estimate of 78.86%.
Underwriting Expense Ratio - Casualty and Specialty Segment: 30% versus 29.99% estimated by two analysts on average.
Net Claims and Claim Expense Ratio - calendar year - Casualty and Specialty Segment: 63.2% versus 63.4% estimated by two analysts on average.
Combined Ratio - Casualty and Specialty Segment: 93.2% versus 93.38% estimated by two analysts on average.
Revenues- Net premiums earned: $1.79 billion versus the three-analyst average estimate of $1.71 billion. The reported number represents a year-over-year change of +22.6%.
Revenues- Equity in earnings (losses) of other ventures: $7.70 million compared to the $7.90 million average estimate based on three analysts. The reported number represents a change of +4.3% year over year.
Revenues- Net investment income: $292.66 million versus the three-analyst average estimate of $240.83 million. The reported number represents a year-over-year change of +173%.
Revenues- Other income (loss): $3.88 million compared to the $1.47 million average estimate based on two analysts. The reported number represents a change of +319.9% year over year.
Net premiums earned- Casualty and Specialty: $1.03 billion versus the two-analyst average estimate of $1.01 billion. The reported number represents a year-over-year change of +23.3%.
View all Key Company Metrics for RenaissanceRe here>>>
Shares of RenaissanceRe have returned +8.1% over the past month versus the Zacks S&P 500 composite's +4.9% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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RenaissanceRe Holdings Ltd. (RNR) : Free Stock Analysis Report
