NYSE$RNR

RenaissanceRe Holdings Ltd · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

RenaissanceRe experienced a net loss due to the impact of COVID-19 and investment losses, but gross premiums written increased.

RenaissanceRe reported a net loss attributable to common shareholders of $82.0 million, or $1.89 per diluted common share, in the first quarter of 2020. The financial performance was negatively impacted by COVID-19 and investment losses, but the company remains well capitalized with ample liquidity.

  • Net loss attributable to RenaissanceRe common shareholders was $82.0 million, or $1.89 per diluted common share.
  • Operating income available to common shareholders was $33.4 million, or $0.76 per diluted common share.
  • Gross premiums written increased by $461.4 million, or 29.5%, to $2.0 billion.
  • The Casualty and Specialty segment incurred an underwriting loss of $83.2 million, impacted by COVID-19 related claims.

Headline financials

Total Revenue

$896M

Previous: $807M+11.0%
EPS (adj)

$0.76

Previous: $3.60-78.9%
Gross Premiums Written

$2.03B

No prior period
Combined Ratio

93.0%

Previous: 72.0%+29.2%
Book Value / Share

$117.15

No prior period
Free Cash Flow

-$72.9M

Previous: $283M-125.8%
Net Income

-$72.9M

Previous: $283M-125.8%
Operating Income

$26.8M

Previous: $414M-93.5%
Gross Profit

$829M

Previous: $456M+81.7%
Cash & Equivalents

$896M

Previous: $1.02B-12.2%
Total Assets

$27.5B

Previous: $24.6B+11.8%

Revenue & EPS history

RenaissanceRe · Revenue · Quarterly

$896M

Q1 2020+11%vs Q1 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

RenaissanceRe · $970M total across 2 segments · Q4 2019

  • Casualty & Specialty
    $503M
  • Property
    $467M

Forward guidance

RenaissanceRe is continuing to evaluate the impact of COVID-19 on its business and to estimate all of the Company’s potential reinsurance, insurance or investment exposures, or any other effects that the COVID-19 pandemic may have on its results of operations or financial condition. The Company expects losses to emerge over time as the full impact of the pandemic and its effects on the global economy are realized.

Headwinds

  • A longer or more severe recession, or high unemployment levels will increase the probability of losses.
  • Potential legislative, regulatory and judicial actions are also causing significant uncertainty with respect to policy coverage and other issues.
  • Actual losses may vary materially from this initial estimate.
  • Volatility in global financial markets and a continued slowdown in global economic conditions, have adversely affected, and may continue to adversely affect, the Company’s investment portfolio.
  • These conditions may also negatively impact the Company’s ability to access liquidity and capital markets financing.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.2%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+2.4%

Avg return

30 days after

54%

37 / 68 earnings

Positive

+8.8%

Q4 2022

Best reaction

-8.6%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.0%-2.7%-9.8%
Q4 2025+5.0%+1.1%+4.5%
Q3 2025+7.2%+10.5%+12.8%
Q1 2025-5.0%+0.9%-0.4%
Q4 2024-8.6%-10.4%-8.3%
Q3 2024-1.3%-1.7%+3.9%
Q2 2024-2.8%+0.5%+11.6%
Q1 2024-1.5%-1.5%+2.7%
Q4 2023+6.7%+5.5%+4.8%
Q3 2023-5.0%-5.7%-2.9%
Q2 2023-5.5%-7.3%-9.7%
Q1 2023-0.4%-4.2%-12.5%
Q4 2022+8.8%+7.0%+11.2%
Q3 2022+4.2%+18.2%+18.2%
Q2 2022-3.3%-7.3%-2.9%
Q1 2022+0.8%+0.6%+5.6%
Q4 2021-3.5%-5.7%-9.1%
Q3 2021+4.3%-3.9%+10.6%
Q2 2021-1.7%-0.4%+7.1%
Q1 2021-3.8%-3.2%-10.7%
Q4 2020-2.3%-5.0%-5.3%
Q3 2020-6.2%-7.5%-2.0%
Q2 2020+2.3%+1.8%+4.8%
Q1 2020+3.6%+11.5%+31.7%
Q4 2019+1.3%+3.2%-8.3%
Q3 2019+1.4%+2.2%+4.6%
Q2 2019+1.1%+4.6%+5.7%
Q1 2019+4.3%+7.2%+14.5%
Q4 2018+3.9%+3.9%+10.2%
Q3 2018-2.5%-0.9%+4.4%
Q2 2018+3.0%+6.9%+5.9%
Q1 2018-4.9%-6.4%-9.8%
Q4 2017+2.3%+0.5%-1.2%
Q3 2017-2.9%-0.6%-5.4%
Q2 2017+1.4%-0.3%-1.3%
Q1 2017-2.0%-1.1%+2.0%
Q4 2016+3.5%+3.3%+9.3%
Q3 2016-0.2%-0.1%+5.1%
Q2 2016+0.7%+1.1%+0.5%
Q1 2016+1.1%
Q4 2015-3.3%
Q3 2015+0.4%
Q2 2015+3.0%
Q1 2015+0.6%
Q4 2014+5.4%
Q3 2014-1.3%
Q2 2014-6.6%
Q1 2014+0.5%
Q4 2013+1.8%
Q3 2013+1.8%
Q2 2013-1.5%
Q1 2013-2.4%
Q4 2012-1.3%
Q3 2012-5.0%
Q2 2012-4.0%
Q1 2012+0.2%
Q4 2011+0.7%
Q3 2011+0.7%
Q2 2011-2.2%
Q1 2010+0.4%
Q1 2011+3.5%
Q4 2008+0.3%
Q4 2010+0.3%
Q3 2009+0.1%
Q3 2010+0.1%
Q4 2009-2.7%
Q2 2010-2.7%
Q2 2009-2.7%

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