Update shared on 01 Dec 2025
Fair value Increased 1.30%RenaissanceRe Holdings saw its analyst price target increase modestly from $285.07 to $288.79. Analysts cited updated sector models following recent quarterly results and a generally favorable outlook for the U.S. insurance market.
Analyst Commentary
Bullish Takeaways- Bullish analysts are raising price targets following solid Q3 results and a stable earnings outlook, indicating confidence in RenaissanceRe's recent execution and sector positioning.
- Recent quarters were notably calm on the catastrophe front, with no hurricanes making landfall in key markets. This reduced claims volatility and supported earnings stability.
- Incremental increases in valuation targets across several firms reflect expectations for continued resilience in underlying business fundamentals, even amid broader macroeconomic concerns.
- Improved ratings and outlook upgrades suggest that recent performance and portfolio management have alleviated earlier concerns. This further underpins consensus price target increases.
- Bearish analysts cite a growing negative bias toward Bermuda reinsurers, noting sector valuations may not remain supportive if over-earning is more widespread than anticipated.
- Concerns over increasing capital supply relative to demand are viewed as a catalyst for a potential softening cycle in property and casualty markets. This could weigh on future profitability.
- Coverage initiations with more cautious ratings highlight skepticism about the company's ability to sustain earnings momentum if market conditions revert or sector imbalances intensify.
- Even as some price targets are raised, several analysts are maintaining neutral or cautious stances. This suggests that upside potential may be tempered by structural headwinds in the industry.
What's in the News
- RenaissanceRe Holdings Ltd. (NYSE:RNR) announced a new share repurchase program, authorizing up to $750 million in share buybacks. (Key Developments)
- The Board of Directors authorized the most recent buyback plan on November 5, 2025. (Key Developments)
- Between July 1, 2025, and October 24, 2025, the company repurchased 1,240,248 shares for $305.22 million, completing a total buyback of 2,179,509 shares for $534.99 million under its May 7, 2025 authorization. (Key Developments)
- RenaissanceRe Holdings Ltd. was removed from the FTSE All-World Index (USD). (Key Developments)
Valuation Changes
- Consensus Analyst Price Target has risen slightly from $285.07 to $288.79, reflecting increased optimism in valuations.
- Discount Rate is essentially unchanged, moving minimally from 6.96% to 6.96%.
- Revenue Growth remains negative at -4.00%, with no material change from the previous estimate.
- Net Profit Margin is largely stable, holding near 13.40% with an insignificant upward adjustment.
- Future P/E has increased modestly from 8.91x to 9.03x. This suggests a marginally higher multiple being applied by analysts in forecasts.
Disclaimer
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