RenaissanceRe Holdings Ltd.NYSE
Renaissance Re Taking A Best-In-Class Model Into Uncharted Territory
Stephen Simpson, CFA
Stephen Simpson, CFA
RenaissanceRe Changes With The Times
Stephen Simpson, CFA
Stephen Simpson, CFA
Mon, Nov. 21, 1:31 PM
- The stock is "no longer attractive as a new money investment," says analyst Joshua Shanker following a 16% rise YTD, with most of that in the last couple of months.
- Even with the strong move of late, large-cap P&C names have underperformed other financials, and this could continue as rising interest rates may mean more difficult pricing and mark-to-market fixed-income losses.
- Source: Bloomberg
- RNR -0.75% on the session.
Thu, Nov. 10, 4:52 PM
Tue, Nov. 1, 4:32 PM
Mon, Oct. 31, 5:35 PM
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Thu, Oct. 20, 11:32 AM
- Reinsurers sell coverage to other insurance companies for natural disasters and such. While they wait for loss-triggering events to happen, the reinsurers collect premiums which they can then invest. Warren Buffett (BRK.A, BRK.B) credits this "float" as a big factor behind his great fortune.
- But business isn't what it used to be, write Sonali Basak and Noah Buhayar in Bloomberg, and Buffett sold stakes in Swiss Re and Munich Re last year, saying prospects over the next decade don't look great. He also put new leadership in charge of Berkshire's General Re to try and reverse more than a decade of shrinking float.
- Among the issues are what's turned into years of barely visible interest rates. “It is no fun,” says The Oracle, to “find out that a great many of the things that you were buying a few years ago now have negative yields.” It's also become a more crowded field with the entrants first of David Einhorn (NASDAQ:GLRE) and more recently Dan Loeb (NYSE:TPRE) helping to create a price war, with premiums down 40% over the past decade.
- Insurers can also now turn to investment banks to lay off risk by issuing catastrophe bonds - a market that's grown from $9.2B to $25B over the last ten years.
- A shakeout is already underway as there have been a number of sector mergers. What might further shake things up would be a catastrophe big enough to cause significant industry losses.
- Interested parties: CB, RNR, AHL, ENH, AXS, ACGL, RGA, UNM
Fri, Sep. 23, 8:12 AM
- Global catastrophe reinsurance prices fell again this year, and they're now below levels last seen in 2001 before the 9/11 attacks, according to research firm Guy Carpenter.
- Source: WSJ's Paul Davies
- At issue are barely visible interest rates which have led to a wider range of investors looking to earn some sort of return by underwriting reinsurance risks. There's also been a lack of costly disasters in recent years, leading to a buildup of capital in search of work. Even as some insist reinsurance prices may soon find a floor, there's another issue - ordinary property insurance is suffering low demand, meaning demand from ordinary insurers for reinsurance is slowing.
- Options to improve returns, then, are narrowed to taking on more insurance risk or boosting balance sheet leverage, and there are signs the industry is doing both. Moody's notes reinsurers writing policies with higher probable maximum losses, especially those linked to U.S. hurricanes.
- There's also worry insurers will put less money aside today to cover futures claims as a way to boost underwriting profits.
- Finally, reinsurers looking for new business are attempting to move more structured policies.
- Interested parties: Chubb (NYSE:CB), PartnerRe (NYSE:PRE), Everest Re (NYSE:RE), RenaissanceRe (NYSE:RNR), Aspen (NYSE:AHL), Endurance Specialty (NYSE:ENH), Axis (NYSE:AXS), Arch Capital (NASDAQ:ACGL), Reinsurance Group of America (NYSE:RGA), Unum Group (NYSE:UNM).
Tue, Aug. 2, 5:39 PM
Tue, Jul. 26, 4:19 PM
Mon, Jul. 25, 5:35 PM
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Tue, Jul. 12, 4:12 PM| Tue, Jul. 12, 4:12 PM
Mon, Jul. 11, 8:46 AM
- Citing interest rate pressures and lowered ROE expectations, KBW downgrades RenaissanceRe (NYSE:RNR) to Market Perform from Outperform.
- Endurance Specialty (NYSE:ENH), on the other hand, is boosted to Outperform, with the team noting recent margin improvement. The transformational story is a compelling one, says KBW. The $79 price target suggests 16% upside from Friday's $66.70 close.
Mon, May 16, 5:19 PM
- RenaissanceRe (NYSE:RNR) declares $0.31/share quarterly dividend, in line with previous.
- Forward yield 1.09%
- Payable June 30; for shareholders of record June 15; ex-div June 13.
Tue, Apr. 26, 5:05 PM
- RenaissanceRe (NYSE:RNR): Q1 EPS of $1.51 misses by $1.15.
- Revenue of $448.12M (+17.3% Y/Y) beats by $46.89M.
Mon, Apr. 25, 5:35 PM
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Fri, Feb. 19, 6:11 PM
- Along with a slight dividend hike, RenaissanceRe (NYSE:RNR) has announced it's buyback authorization has been hiked to $500M. That's good for repurchasing nearly 10% of shares at current levels.
- Separately, the insurance firm has announced Nicholas Trivisonno, a board member since 2004, will be stepping down at its May annual meeting. Carol Sanders, most recently the CFO of Sentry Insurance, will replace Trivisonno.
Fri, Feb. 19, 4:10 PM
- RenaissanceRe (NYSE:RNR) declares $0.31/share quarterly dividend, 3.3% increase from prior dividend of $0.30.
- Forward yield 1.08%
- Payable March 31; for shareholders of record March 15; ex-div March 11.