NYSE$RNR

RenaissanceRe Holdings Ltd · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported a net loss attributable to common shareholders and solid double digit operating return.

RenaissanceRe reported a net loss attributable to common shareholders of $394.4 million for Q1 2022, but delivered a solid double digit operating return. The company saw growth in net premiums written, driven by the Casualty and Specialty segment, and launched the Fontana joint venture to expand fee income business.

  • Net premiums written grew by $341.1 million, or 18.7%, driven by growth in Casualty and Specialty.
  • Launched Fontana, a casualty and specialty joint venture, in April 2022 to expand fee income business.
  • Reported a combined ratio of 86.5%, including impacts from weather-related large losses and the Russia-Ukraine War.
  • Repurchased $93.4 million of common shares.

Headline financials

Total Revenue

$876M

Previous: $862M+1.7%
EPS (adj)

$3.50

Previous: $0.09+3788.9%
Combined Ratio

86.5%

Previous: 103.1%-16.1%
Free Cash Flow

-$386M

Previous: -$284M-35.9%
Net Income

-$386M

Previous: -$284M-35.9%
Operating Income

-$421M

Previous: -$336M-25.3%
Gross Profit

$809M

Previous: $807M+0.2%
Cash & Equivalents

$1.56B

Previous: $1.29B+21.5%
Total Assets

$34.8B

Previous: $32.2B+8.1%

Revenue & EPS history

RenaissanceRe · Revenue · Quarterly

$876M

Q1 2022+1.7%vs Q1 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

RenaissanceRe expects improving market conditions to benefit its underwriting, fee income business, and investment income, leading to increasingly resilient financial results and superior returns for shareholders.

Tailwinds

  • Material rate increases across most lines of underwriting.
  • Continuing growth in the Casualty and Specialty segment.
  • Launch of the Fontana casualty and specialty joint venture.
  • Rising interest rates benefiting investment income.
  • Strong balance sheet.

Headwinds

  • Potential for natural catastrophe volatility.
  • Uncertainty associated with the scale, duration and impact of the Russia-Ukraine war
  • Impact of weather-related large losses
  • Net realized and unrealized losses in the fixed maturity investments portfolio
  • Negative impact of performance fees due to deficit from weather-related losses in 2021

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 2022

Historical avgQ1 2022

-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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