Hurricane Milton's impact remains lower than expected for insured losses. Analysts forecast insured losses between $30-$50 billion, less than earlier estimates. Property and casualty insurance stocks rallied amid reduced storm damage concerns. RNR stock showed resilience, closing near a 52-week high this year. Lower-than-expected losses may impact future pricing for reinsurers at renewals.
RNR's Q2 2024 operating income exceeded estimates by 14.1%. Revenue increased 41.8% year-over-year. Gross premiums written rose 29.2% to $3.4 billion, but missed expectations. Net premiums earned jumped 42.3% year-over-year. The Validus acquisition boosted investment income and assets significantly. Underwriting income grew 36.6% year-over-year to $479.3 million. Total expenses increased 44% due to higher claims and operational costs. Combined ratio slightly deteriorated to 81.1%. Book value per share reached $179.87, up 38.4% year over year. RNR has a Zacks Rank #4 (Sell).
RenaissanceRe reported $2.95 billion revenue, up 41.8% year-over-year. EPS was $12.41, beating consensus by 14.06% with a $10.88 expectation. Net premiums earned $2.54 billion, exceeding estimates of $2.49 billion. Combined ratio improved to 81.1%, below analyst average estimate of 81.5%. Stock has a Zacks Rank #4, suggesting potential underperformance versus the market.
RenaissanceRe reported Q2 earnings of $12.41, beating estimates by 14.06%. The company also surpassed revenue estimates with $2.95 billion, up from $2.08 billion. Despite strong earnings, estimate revisions are currently unfavorable, leading to a Zacks Rank #4. RenaissanceRe shares have gained 15.2% in 2024, underperforming the S&P 500's 16.5%. Future stock movement relies on management's earnings call commentary and estimate updates.
