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Compared to Estimates, RenaissanceRe (RNR) Q2 Earnings: A Look at Key Metrics
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RenaissanceRe (RNR - Free Report) reported $2.95 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 41.8%. EPS of $12.41 for the same period compares to $8.79 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $2.93 billion, representing a surprise of +0.82%. The company delivered an EPS surprise of +14.06%, with the consensus EPS estimate being $10.88.
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: 51.5% versus the four-analyst average estimate of 52.4%.
Underwriting Expense Ratio: 29.6% versus the four-analyst average estimate of 29.2%.
Combined Ratio: 81.1% versus the four-analyst average estimate of 81.5%.
Net Claims and Claim Expense Ratio - calendar year - Casualty and Specialty Segment: 66.4% versus the three-analyst average estimate of 64.5%.
Underwriting Expense Ratio - Casualty and Specialty Segment: 31.8% versus the three-analyst average estimate of 30.4%.
Combined Ratio - Casualty and Specialty Segment: 98.2% compared to the 94.8% average estimate based on three analysts.
Revenues- Net premiums earned: $2.54 billion compared to the $2.49 billion average estimate based on four analysts. The reported number represents a change of +42.4% year over year.
Revenues- Equity in earnings (losses) of other ventures: $12.59 million versus the four-analyst average estimate of $6.51 million. The reported number represents a year-over-year change of +63.5%.
Revenues- Net investment income: $410.85 million compared to the $398.46 million average estimate based on four analysts. The reported number represents a change of +40.4% year over year.
Net premiums earned- Property: $980.83 million compared to the $929.14 million average estimate based on three analysts. The reported number represents a change of +29.3% year over year.
Net premiums earned- Casualty and Specialty: $1.56 billion versus the three-analyst average estimate of $1.54 billion. The reported number represents a year-over-year change of +52%.
Revenues- Other income (loss): $0.17 million versus $2 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -95.6% change.
Shares of RenaissanceRe have returned -1.6% over the past month versus the Zacks S&P 500 composite's +1.8% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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Compared to Estimates, RenaissanceRe (RNR) Q2 Earnings: A Look at Key Metrics
RenaissanceRe (RNR - Free Report) reported $2.95 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 41.8%. EPS of $12.41 for the same period compares to $8.79 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $2.93 billion, representing a surprise of +0.82%. The company delivered an EPS surprise of +14.06%, with the consensus EPS estimate being $10.88.
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: 51.5% versus the four-analyst average estimate of 52.4%.
- Underwriting Expense Ratio: 29.6% versus the four-analyst average estimate of 29.2%.
- Combined Ratio: 81.1% versus the four-analyst average estimate of 81.5%.
- Net Claims and Claim Expense Ratio - calendar year - Casualty and Specialty Segment: 66.4% versus the three-analyst average estimate of 64.5%.
- Underwriting Expense Ratio - Casualty and Specialty Segment: 31.8% versus the three-analyst average estimate of 30.4%.
- Combined Ratio - Casualty and Specialty Segment: 98.2% compared to the 94.8% average estimate based on three analysts.
- Revenues- Net premiums earned: $2.54 billion compared to the $2.49 billion average estimate based on four analysts. The reported number represents a change of +42.4% year over year.
- Revenues- Equity in earnings (losses) of other ventures: $12.59 million versus the four-analyst average estimate of $6.51 million. The reported number represents a year-over-year change of +63.5%.
- Revenues- Net investment income: $410.85 million compared to the $398.46 million average estimate based on four analysts. The reported number represents a change of +40.4% year over year.
- Net premiums earned- Property: $980.83 million compared to the $929.14 million average estimate based on three analysts. The reported number represents a change of +29.3% year over year.
- Net premiums earned- Casualty and Specialty: $1.56 billion versus the three-analyst average estimate of $1.54 billion. The reported number represents a year-over-year change of +52%.
- Revenues- Other income (loss): $0.17 million versus $2 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -95.6% change.
View all Key Company Metrics for RenaissanceRe here>>>Shares of RenaissanceRe have returned -1.6% over the past month versus the Zacks S&P 500 composite's +1.8% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.