Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Is Renaissance Re Still A Safe Haven Among Reinsurance Companies?

I believe there are many standards by which RenaissanceRe Holdings (NYSE:RNR) (or "RenRe") can be called an excellent, if not one of the best, reinsurance companies in the business. Since its founding in 1993, RenRe has generated some of the best returns on equity within the space (a 20%-plus ROE since inception) due to very sophisticated risk analytics and modeling. RenRe has also been one of the pioneers in managed cat vehicles, an alternative capital option that generates significant returns on capital for the company.

The problem is that the property catastrophe market has too much capital today and pricing is getting undisciplined, with underwriters like RenRe and Validus (NYSE:VR) looking for double-digit declines in premiums....

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