NYSE:RNR

Stock Analysis Report

RenaissanceRe Holdings

Executive Summary

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


Snowflake Analysis

Good value with proven 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

Stable Share Price: RNR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.1%

RNR

-6.1%

US Insurance

-2.0%

US Market


1 Year Return

-1.3%

RNR

-25.5%

US Insurance

-15.1%

US Market

Return vs Industry: RNR exceeded the US Insurance industry which returned -24.7% over the past year.

Return vs Market: RNR exceeded the US Market which returned -14.9% over the past year.


Shareholder returns

RNRIndustryMarket
7 Day-5.1%-6.1%-2.0%
30 Day-19.4%-28.4%-19.7%
90 Day-27.5%-33.3%-23.2%
1 Year-0.5%-1.3%-23.6%-25.5%-13.4%-15.1%
3 Year3.5%0.7%-11.8%-18.7%10.9%3.7%
5 Year45.6%38.7%10.6%-2.8%28.4%14.4%

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 compared to its fair value and its price relative to the market?

48.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RNR ($141.59) is trading below our estimate of fair value ($275.32)

Significantly Below Fair Value: RNR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RNR is good value based on its PE Ratio (8.7x) compared to the Insurance industry average (8.7x).

PE vs Market: RNR is good value based on its PE Ratio (8.7x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: RNR is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: RNR is overvalued based on its PB Ratio (1.2x) compared to the US Insurance industry average (0.8x).


Next Steps

Future Growth

How is RenaissanceRe Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

4.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RNR's forecast earnings growth (4.9% per year) is above the savings rate (1.7%).

Earnings vs Market: RNR's earnings (4.9% per year) are forecast to grow slower than the US market (12.2% per year).

High Growth Earnings: RNR's earnings are forecast to grow, but not significantly.

Revenue vs Market: RNR's revenue (1.8% per year) is forecast to grow slower than the US market (7.1% per year).

High Growth Revenue: RNR's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RNR's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has RenaissanceRe Holdings performed over the past 5 years?

-7.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RNR has high quality earnings.

Growing Profit Margin: RNR's current net profit margins (16.7%) are higher than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: RNR's earnings have declined by -7.3% per year over the past 5 years.

Accelerating Growth: RNR's earnings growth over the past year (260.5%) exceeds its 5-year average (-7.3% per year).

Earnings vs Industry: RNR earnings growth over the past year (260.5%) exceeded the Insurance industry 43.7%.


Return on Equity

High ROE: RNR's Return on Equity (10.5%) is considered low.


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: RNR has a low level of unsold assets or inventory.

Debt Coverage by Assets: RNR's debt is covered by short term assets (assets are 17.2x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

0.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RNR's dividend (0.99%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2.04%).

High Dividend: RNR's dividend (0.99%) is low compared to the top 25% of dividend payers in the US market (5.7%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: RNR is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average management tenure


CEO

Kevin O'Donnell (52yo)

6.75s

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 ($USD10.82M) is above average for companies of similar size in the US market ($USD7.63M).

Compensation vs Earnings: Kevin's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kevin O'Donnell
President6.75yrsUS$10.82m0.50% $31.2m
Robert Qutub
Executive VP & CFO3.67yrsUS$3.96m0.11% $6.6m
Stephen Weinstein
Senior VP18.25yrsUS$3.38m0.23% $14.4m
Ian Branagan
Senior VP & Group Chief Risk Officer15.25yrsUS$3.38m0.13% $8.3m
Sean Brosnan
Chief Investment Officer & Senior VP3.08yrsno data0.025% $1.6m
James Fraser
Chief Accounting Officer & Senior VP3.33yrsno data0.029% $1.8m
Keith McCue
Senior Vice President of Finance & Investor Relationsno datano datano data
Keil Gunther
Vice President of Marketing & Communicationsno datano datano data
Ann Manal
Chief Human Resources Officer0.17yrno datano data
Jonathan D. Paradine
SVP and Chief Executive of Singapore Branch - Renaissance Reinsurance Ltd & DaVinci Reinsurance Ltd9.92yrsno data0.13% $7.8m

5.2yrs

Average Tenure

50.5yo

Average Age

Experienced Management: RNR's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin O'Donnell
President6.75yrsUS$10.82m0.50% $31.2m
Duncan Hennes
Independent Director2.67yrsUS$229.89k0.0089% $552.8k
Jean Hamilton
Independent Director14.83yrsUS$229.89k0.056% $3.5m
David Bushnell
Independent Director11.92yrsUS$259.89k0.042% $2.6m
Anthony Santomero
Independent Director11.92yrsUS$259.89k0.042% $2.6m
Henry Klehm
Independent Director13.92yrsUS$259.89k0.044% $2.7m
Carol Sanders
Independent Director3.92yrsUS$229.89k0.012% $725.2k
Brian G. Gray
Independent Director6.92yrsUS$229.89k0.032% $2.0m
Valerie Rahmani
Independent Director2.67yrsUS$229.89k0.0089% $552.8k
James Gibbons
Non-Executive Chairman of the Board3.92yrsUS$459.97k0.053% $3.3m

6.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: RNR's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.5%.


Top Shareholders

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$6.246b
  • Shares outstanding: 44.11m
  • 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.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 segment writes property catastrophe excess of loss reinsurance and excess of loss retrocessional reinsurance to insure insurance and reinsurance companies against natural and man-made catastrophes, including hurricanes, earthquakes, and other windstorms, as well as claims arising from other natural and man-made catastrophes comprising tsunamis, winter storms, freezes, floods, fires, tornadoes, explosions and acts of terrorism; and other property class of products, such as proportional reinsurance, property per risk, property reinsurance, and binding facilities and regional U.S. multi-line reinsurance. The Casualty and Specialty segment writes various classes of products, such as directors and officers, medical malpractice, and professional indemnity; automobile and employer’s liability, casualty clash, umbrella or excess casualty, workers’ compensation, and general liability; financial and mortgage guaranty, political risk, surety, and trade credit; and accident and health, agriculture, aviation, cyber, energy, marine, satellite, and terrorism. It distributes its products and services primarily through intermediaries. The company was founded in 1993 and is headquartered in Pembroke, Bermuda. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 01:47
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.