NYSE$RNR

RenaissanceRe Holdings Ltd · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported a net loss attributable to common shareholders and experienced impact from Winter Storm Uri.

RenaissanceRe reported a net loss attributable to common shareholders of $290.9 million for the first quarter of 2021, impacted by Winter Storm Uri and volatile capital markets. However, the company grew gross premiums written by 30.9% and repurchased 1.1 million common shares.

  • Grew gross premiums written by 30.9%, with 32.5% growth in the Property segment and 28.6% in the Casualty and Specialty segment.
  • Major winter storms in February 2021, referred to as Winter Storm Uri, caused widespread damage in the U.S., predominately in Texas, and had a $179.8 million net negative impact on net loss attributable to common shareholders, primarily in the Property segment.
  • Repurchased 1.1 million common shares at an average price of $159.47 per common share in the first quarter, with additional repurchases of 330 thousand common shares from April 1, 2021 through April 23, 2021 at an average price of $167.62 per common share.
  • Utilized flexible platform to broaden access to risk and match with efficient capital, growing premiums on a gross and net basis

Headline financials

Total Revenue

$862M

Previous: $896M-3.8%
EPS (adj)

$0.09

Previous: $0.76-88.2%
Combined Ratio

103.1%

Previous: 93.0%+10.9%
Free Cash Flow

-$284M

Previous: -$72.9M-289.0%
Net Income

-$284M

Previous: -$72.9M-289.0%
Operating Income

-$336M

Previous: $26.8M-1352.6%
Gross Profit

$807M

Previous: $829M-2.7%
Cash & Equivalents

$1.29B

Previous: $896M+43.6%
Total Assets

$32.2B

Previous: $27.5B+17.4%

Revenue & EPS history

RenaissanceRe · Revenue · Quarterly

$862M

Q1 2021-3.8%vs Q1 2020
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 anticipates additional opportunities to grow into a broadly improving market by matching desirable risk with efficient capital, both on our wholly owned balance sheets and in our industry-leading RenaissanceRe Capital Partners business. Together with improved yields in our investment portfolio, this diligent execution of our strategy will further contribute to shareholder value creation.

Tailwinds

  • Expanded participation on multiple casualty and specialty lines, benefiting from underlying rate increases and anticipated improvement in underwriting margins.
  • Grew catastrophe-exposed U.S. property excess and surplus lines in the other property class of business.
  • Took a disciplined approach at the January 1 and April 1 property catastrophe renewals, expanding participation predominately with existing customers at improved rates.
  • Rebranded ventures unit as RenaissanceRe Capital Partners, reflecting partnership approach and strong alignment with third-party investors.

Headwinds

  • The uncertainty of the continuing and future impact of the COVID-19 pandemic, including measures taken in response thereto and the effect of legislative, regulatory and judicial influences on our financial performance and our ability to conduct our business
  • The frequency and severity of catastrophic and other events the Company covers
  • The effectiveness of the Company’s claims and claim expense reserving process
  • The effect of climate change on the Company’s business, including the trend towards increasingly frequent and severe climate events
  • The Company’s ability to maintain its financial strength ratings

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 2021

Historical avgQ1 2021

-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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