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Compared to Estimates, RenaissanceRe (RNR) Q3 Earnings: A Look at Key Metrics

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For the quarter ended September 2023, RenaissanceRe (RNR - Free Report) reported revenue of $2.06 billion, up 7.1% over the same period last year. EPS came in at $8.33, compared to -$9.27 in the year-ago quarter.

The reported revenue represents a surprise of +1.67% over the Zacks Consensus Estimate of $2.03 billion. With the consensus EPS estimate being $6.54, the EPS surprise was +27.37%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how RenaissanceRe performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Net Claims and Claim Expense Ratio: 49.1% versus the three-analyst average estimate of 72.3%.
  • Underwriting Expense Ratio: 28.9% compared to the 35.3% average estimate based on three analysts.
  • Combined Ratio: 78% versus 100.7% estimated by three analysts on average.
  • Underwriting Expense Ratio - Casualty and Specialty Segment: 31.2% versus 30.4% estimated by two analysts on average.
  • Net Claims and Claim Expense Ratio - calendar year - Casualty and Specialty Segment: 65.8% versus 62.4% estimated by two analysts on average.
  • Underwriting Expense Ratio - Property Segment: 26.1% compared to the 25% average estimate based on two analysts.
  • Combined Ratio - Casualty and Specialty Segment: 97% versus 92.9% estimated by two analysts on average.
  • Revenues- Net investment income: $329.11 million compared to the $287.20 million average estimate based on three analysts. The reported number represents a change of +108.6% year over year.
  • Revenues- Net premiums earned: $1.76 billion compared to the $1.78 billion average estimate based on three analysts. The reported number represents a change of -0.6% year over year.
  • Net premiums earned- Property: $760.37 million versus $779.48 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -9.5% change.
  • Net premiums earned- Casualty and Specialty: $995.51 million compared to the $1.01 billion average estimate based on two analysts. The reported number represents a change of +7.4% year over year.
View all Key Company Metrics for RenaissanceRe here>>>

Shares of RenaissanceRe have returned +11.5% over the past month versus the Zacks S&P 500 composite's -2.2% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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