NYSE:RNR

Stock Analysis Report

RenaissanceRe Holdings

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet and fair value.


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

0.1%

NYSE:RNR

1.6%

US Insurance

0.8%

US Market


1 Year Return

41.6%

NYSE:RNR

9.9%

US Insurance

1.9%

US Market

RNR outperformed the Insurance industry which returned 9.5% over the past year.

RNR outperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

RNRIndustryMarket
7 Day0.1%1.6%0.8%
30 Day0.1%2.7%3.4%
90 Day3.9%1.4%2.1%
1 Year42.8%41.6%12.6%9.9%4.2%1.9%
3 Year60.6%56.2%47.6%36.3%46.7%37.2%
5 Year99.4%89.6%71.8%51.2%62.3%44.5%

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

Valuation

Is RenaissanceRe Holdings undervalued based on future cash flows and its price relative to the stock market?

25%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

RenaissanceRe Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

RenaissanceRe Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

RenaissanceRe Holdings is good value based on earnings compared to the US Insurance industry average.

RenaissanceRe Holdings is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

RenaissanceRe Holdings earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

RenaissanceRe Holdings is overvalued based on assets compared to the US Insurance industry average.


Next Steps

Future Growth

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

-10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

RenaissanceRe Holdings's revenue is expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).

RenaissanceRe Holdings's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

RenaissanceRe Holdings's revenue growth is positive but not above the United States of America market average.

RenaissanceRe Holdings's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

RenaissanceRe Holdings's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

RenaissanceRe Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

RenaissanceRe Holdings's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

RenaissanceRe Holdings has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

RenaissanceRe Holdings has become profitable in the last year making it difficult to compare the US Insurance industry average.


Return on Equity

RenaissanceRe Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

RenaissanceRe Holdings used its assets less efficiently than the US Insurance industry average last year based on Return on Assets.


Return on Capital Employed

RenaissanceRe Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is RenaissanceRe Holdings's financial position?


Financial Position Analysis

RenaissanceRe Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

RenaissanceRe Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

RenaissanceRe Holdings's level of debt (16%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (5.1% vs 16% today).

Debt is well covered by operating cash flow (119.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 16.3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 17.1x debt.


Next Steps

Dividend

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

0.73%

Expected Dividend Yield


Dividend Yield and Payments Analysis

RenaissanceRe Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

RenaissanceRe Holdings's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

RenaissanceRe Holdings is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

RenaissanceRe Holdings is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of RenaissanceRe Holdings's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

No need to calculate the sustainability of RenaissanceRe Holdings's dividends in 3 years as they are not expected to pay a notable one for United States of America.


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)

6.2yrs

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

Kevin's remuneration is higher than average for companies of similar size in United States of America.

Kevin's compensation has increased in line with RenaissanceRe Holdings recently becoming profitable.


Management Age and Tenure

7.8yrs

Average Tenure

49yo

Average Age

The average tenure for the RenaissanceRe Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.3yrs

Average Tenure

60.5yo

Average Age

The tenure for the RenaissanceRe Holdings board of directors is about average.


Insider Trading

RenaissanceRe Holdings individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$171,22331 Jul 19
Sean Brosnan
EntityIndividual
Role
Chief Investment Officer
Chief Investment Officer & Senior VP
Shares931
Max PriceUS$183.91
SellUS$182,46306 Mar 19
Sean Brosnan
EntityIndividual
Role
Chief Investment Officer
Chief Investment Officer & Senior VP
Shares1,250
Max PriceUS$145.97
SellUS$103,68008 Nov 18
Henry Klehm
EntityIndividual
Role
Member of the Board of Directors
Director
Shares810
Max PriceUS$128.00

Ownership Breakdown


Management Team

  • Kevin O'Donnell (52yo)

    President

    • Tenure: 6.2yrs
    • Compensation: US$10.82m
  • Keil Gunther (46yo)

    Vice President of Marketing & Communications

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

    Senior VP

    • Tenure: 17.7yrs
    • Compensation: US$3.38m
  • Ross Curtis (46yo)

    Senior VP & Group Chief Underwriting Officer

    • Tenure: 13.5yrs
    • Compensation: US$3.89m
  • Ian Branagan (51yo)

    Senior VP & Group Chief Risk Officer

    • Tenure: 14.7yrs
    • Compensation: US$3.38m
  • Jon Paradine (48yo)

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

    • Tenure: 9.3yrs
  • Bob Qutub (57yo)

    Executive VP & CFO

    • Tenure: 3.1yrs
    • Compensation: US$3.96m
  • Jamie Fraser (43yo)

    Chief Accounting Officer & Senior VP

    • Tenure: 2.8yrs
  • Sean Brosnan

    Chief Investment Officer & Senior VP

    • Tenure: 2.5yrs
  • Keith McCue

    Senior Vice President of Finance & Investor Relations

    • Tenure: 0yrs

Board Members

  • Duncan Hennes (62yo)

    Director

    • Tenure: 2.1yrs
    • Compensation: US$229.89k
  • Jean Hamilton (72yo)

    Director

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

    President

    • Tenure: 6.2yrs
    • Compensation: US$10.82m
  • Dave Bushnell (64yo)

    Director

    • Tenure: 11.3yrs
    • Compensation: US$259.89k
  • Tony Santomero (73yo)

    Director

    • Tenure: 11.3yrs
    • Compensation: US$259.89k
  • Henry Klehm (60yo)

    Director

    • Tenure: 13.3yrs
    • Compensation: US$259.89k
  • Carol Sanders (51yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$229.89k
  • Brian G. Gray (57yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: US$229.89k
  • Val Rahmani (61yo)

    Director

    • Tenure: 2.1yrs
    • Compensation: US$229.89k
  • James Gibbons (55yo)

    Non-Executive Chairman of the Board

    • Tenure: 3.3yrs
    • 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: RNR
  • Exchange: NYSE
  • Founded: 1993
  • Industry: Reinsurance
  • Sector: Insurance
  • Market Cap: US$8.390b
  • 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 Analysis2019/09/18 00:06
End of Day Share Price2019/09/17 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.