DB:RRJ

Stock Analysis Report

RenaissanceRe Holdings

Executive Summary

RenaissanceRe Holdings Ltd. provides reinsurance and insurance products in the United States and internationally.

Snowflake

Fundamentals

Fair value with poor track record.


Similar Companies

Share Price & News

How has RenaissanceRe Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.2%

RRJ

2.9%

DE Insurance

1.4%

DE Market


1 Year Return

49.6%

RRJ

22.0%

DE Insurance

3.8%

DE Market

Return vs Industry: RRJ exceeded the German Insurance industry which returned 22% over the past year.

Return vs Market: RRJ exceeded the German Market which returned 3.8% over the past year.


Shareholder returns

RRJIndustryMarket
7 Day-1.2%2.9%1.4%
30 Day-0.7%3.8%1.3%
90 Day6.2%3.8%3.1%
1 Year50.8%49.6%27.3%22.0%7.0%3.8%
3 Year56.9%52.6%70.6%50.0%18.5%8.3%
5 Year126.8%115.7%119.6%75.9%42.2%22.9%

Price Volatility Vs. Market

How volatile is RenaissanceRe Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is RenaissanceRe Holdings undervalued compared to its fair value and its price relative to the market?

37.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RRJ (€170) is trading below our estimate of fair value (€270.59)

Significantly Below Fair Value: RRJ is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RRJ is good value based on its PE Ratio (13.4x) compared to the Insurance industry average (13.4x).

PE vs Market: RRJ is good value based on its PE Ratio (13.4x) compared to the German market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: RRJ's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: RRJ is overvalued based on its PB Ratio (1.6x) compared to the DE Insurance industry average (1.1x).


Next Steps

Future Growth

How is RenaissanceRe Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RRJ's earnings are forecast to decline over the next 3 years (-9.2% per year).

Earnings vs Market: RRJ's earnings are forecast to decline over the next 3 years (-9.2% per year).

High Growth Earnings: RRJ's earnings are forecast to decline over the next 3 years.

Revenue vs Market: RRJ's revenue (4.9% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: RRJ's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RRJ's Return on Equity is forecast to be low in 3 years time (11.7%).


Next Steps

Past Performance

How has RenaissanceRe Holdings performed over the past 5 years?

-24.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RRJ's earnings have declined by -24.4% per year over the past 5 years.

Accelerating Growth: RRJ has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RRJ has become profitable in the last year, making it difficult to compare its past year earnings growth to the Insurance industry (15.2%).


Return on Equity

High ROE: RRJ's Return on Equity (8.4%) is considered low.


Return on Assets

ROA vs Industry: RRJ has a higher Return on Assets than the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: RRJ's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is RenaissanceRe Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: RRJ has a low level of unsold assets or inventory.

Debt Coverage by Assets: RRJ's debt is covered by short term assets (assets are 17.100040x debt).


Financial Institutions Analysis

Asset Level: RRJ's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if RRJ has a sufficient allowance for bad loans.

Low Risk Liabilities: RRJ reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if RRJ has an acceptable proportion of non-loan assets held.

Low Risk Deposits: RRJ has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if RRJ has an appropriate level of bad loans.


Next Steps

Dividend

What is RenaissanceRe Holdings's current dividend yield, its reliability and sustainability?

0.72%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%1.5%markettop25%3.8%industryaverage3.9%forecastin3Years0.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: RRJ's dividend (0.72%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: RRJ's dividend (0.72%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: RRJ is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: RRJ is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: RRJ is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RRJ's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of RenaissanceRe Holdings's salary, the management and board of directors tenure and is there insider trading?

7.8yrs

Average management tenure


CEO

Kevin O'Donnell (52yo)

6.3yrs

Tenure

US$10,819,363

Compensation

Mr. Kevin Joseph O’Donnell has been the Chief Executive Officer and President at RenaissanceRe Holdings Ltd. and Renaissance Reinsurance U.S. Inc. since July 1, 2013 and November 13, 2012 respectively. Mr. ...


CEO Compensation Analysis

Compensation vs. Market: Kevin's total compensation ($USD10.82M) is about average for companies of similar size in the German market ($USD3.60M).

Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.8yrs

Average Tenure

49yo

Average Age

Experienced Management: RRJ's management team is seasoned and experienced (7.8 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

60.5yo

Average Age

Experienced Board: RRJ's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

Insider Buying: RRJ insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$153,62131 Jul 19
Sean Brosnan
EntityIndividual
Role
Chief Investment Officer
Chief Investment Officer & Senior VP
Shares931
Max PriceUS$165.01
SellUS$161,47906 Mar 19
Sean Brosnan
EntityIndividual
Role
Chief Investment Officer
Chief Investment Officer & Senior VP
Shares1,250
Max PriceUS$129.18
SellUS$90,36708 Nov 18
Henry Klehm
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares810
Max PriceUS$111.56

Ownership Breakdown


Management Team

  • Kevin O'Donnell (52yo)

    President

    • Tenure: 6.3yrs
    • Compensation: US$10.82m
  • Keil Gunther (46yo)

    Vice President of Marketing & Communications

    • Tenure: 0yrs
  • Steven Weinstein (50yo)

    Senior VP

    • Tenure: 17.8yrs
    • Compensation: US$3.38m
  • Ross Curtis (46yo)

    Senior VP & Group Chief Underwriting Officer

    • Tenure: 13.6yrs
    • Compensation: US$3.89m
  • Ian Branagan (51yo)

    Senior VP & Group Chief Risk Officer

    • Tenure: 14.8yrs
    • Compensation: US$3.38m
  • Jon Paradine (48yo)

    SVP and Chief Executive of Singapore Branch - Renaissance Reinsurance Ltd & DaVinci Reinsurance Ltd

    • Tenure: 9.4yrs
  • Bob Qutub (57yo)

    Executive VP & CFO

    • Tenure: 3.2yrs
    • Compensation: US$3.96m
  • Jamie Fraser (43yo)

    Chief Accounting Officer & Senior VP

    • Tenure: 2.8yrs
  • Sean Brosnan

    Chief Investment Officer & Senior VP

    • Tenure: 2.6yrs
  • Keith McCue

    Senior Vice President of Finance & Investor Relations

    • Tenure: 0yrs

Board Members

  • Duncan Hennes (62yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$229.89k
  • Jean Hamilton (72yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$229.89k
  • Kevin O'Donnell (52yo)

    President

    • Tenure: 6.3yrs
    • Compensation: US$10.82m
  • Dave Bushnell (64yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: US$259.89k
  • Tony Santomero (73yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: US$259.89k
  • Henry Klehm (60yo)

    Independent Director

    • Tenure: 13.4yrs
    • Compensation: US$259.89k
  • Carol Sanders (51yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$229.89k
  • Brian G. Gray (57yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$229.89k
  • Val Rahmani (61yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$229.89k
  • James Gibbons (55yo)

    Non-Executive Chairman of the Board

    • Tenure: 3.4yrs
    • Compensation: US$459.97k

Company Information

RenaissanceRe Holdings Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RenaissanceRe Holdings Ltd.
  • Ticker: RRJ
  • Exchange: DB
  • Founded: 1993
  • Industry: Reinsurance
  • Sector: Insurance
  • Market Cap: US$8.360b
  • Listing Market Cap: US$7.505b
  • Shares outstanding: 44.16m
  • Website: https://www.renre.com

Number of Employees


Location

  • RenaissanceRe Holdings Ltd.
  • Renaissance House
  • 12 Crow Lane
  • Pembroke
  • HM 19
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RNRNYSE (New York Stock Exchange)YesCommon SharesUSUSDJul 1995
RRJDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 1995
RNR PRDCLNYSE (New York Stock Exchange)PREF D 6.6%USUSDDec 2006
RNR.PRENYSE (New York Stock Exchange)PREF SHS SER EUSUSDMay 2013
RNR.PRFNYSE (New York Stock Exchange)DPSHS RP PFD FUSUSDJun 2018

Biography

RenaissanceRe Holdings Ltd. provides reinsurance and insurance products in the United States and internationally. The company operates through Property, and Casualty and Specialty segments. The Property se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 21:23
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.