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RNR NYSE· RenaissanceRe Holdings Ltd
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RNR NYSE· RenaissanceRe Holdings Ltd
Earnings report Q4 2023

RenaissanceRe Holdings Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

In the latest quarter, RenaissanceRe Holdings reported total revenues of $24.05 million. The breakdown of the different revenue segments is as follows:

  • Net investment income: $97.4 million
  • Net foreign exchange gains (losses): $1.1 million
  • Other loss: ($0.9) million
  • Net realized and unrealized gains (losses) on investments: ($73.6) million

Strengths

RenaissanceRe Holdings demonstrated strong revenue growth in the latest quarter, with a significant increase in net investment income compared to the previous year. The company's net investment income increased from $46.97 million in 2022 to $97.4 million in the current quarter. This growth can be attributed to successful investment strategies and favorable market conditions. Additionally, the company's management highlighted the positive underwriting results, generating underwriting income of $1.6 billion and achieving a combined ratio of 77.9% in the latest quarter, compared to underwriting income of $149.9 million and a combined ratio of 97.7% in the same quarter last year.

Challenges

Despite the overall positive performance, RenaissanceRe Holdings faced challenges in the form of net realized and unrealized losses on investments. The company reported losses of ($73.6) million in the latest quarter, which impacted its total revenues. These losses may be attributed to market volatility and adverse investment performance.

Noteworthy

It is noteworthy that RenaissanceRe Holdings experienced a significant improvement in its net income available to common shareholders in the latest quarter. The company reported a net income of $2.56 billion, compared to a net loss of $1.06 billion in the same quarter last year. This improvement in net income resulted in an annualized return on average common equity of 40.5% and a substantial increase in book value per common share.

Summary

RenaissanceRe Holdings delivered a strong performance in the latest quarter, driven by robust net investment income and positive underwriting results. The company's revenue growth was primarily fueled by increased net investment income, while challenges were observed in the form of net realized and unrealized losses on investments. Despite these challenges, RenaissanceRe Holdings achieved significant improvement in net income available to common shareholders, reflecting the company's resilience and ability to navigate market conditions.

Source documents

Form 10-K  filed on Feb 21, 2024
115 pages scanned

Reference data

Company financials Q4 revenue 3.23B
Analyst estimates Q4 EPS beat by 44.11%
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