NYSE$RNR

RenaissanceRe Holdings Ltd · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported strong Q1 2023 results driven by underwriting performance, capital partners fees, and investment income.

RenaissanceRe reported a net income available to common shareholders of $564.1 million for Q1 2023, with an annualized return on average common equity of 46.6%. The company saw strong performance in both its Property and Casualty and Specialty segments, with combined ratios of 56.6% and 92.9%, respectively. Net investment income grew by 203.9% compared to Q1 2022, and the company raised $621.2 million of third-party capital.

  • Net income available to common shareholders was $564.1 million.
  • Annualized return on average common equity was 46.6% and annualized operating return on average common equity was 29.7%.
  • Property combined ratio was 56.6% and Casualty and Specialty combined ratio was 92.9%.
  • Net investment income increased by 203.9% compared to Q1 2022.

Headline financials

Total Revenue

$2.21B

Previous: $876M+151.6%
EPS (adj)

$8.16

Previous: $3.50+133.1%
Combined Ratio

78.0%

Previous: 86.5%-9.8%
Free Cash Flow

$573M

Previous: -$386M+248.6%
Net Income

$573M

Previous: -$386M+248.6%
Operating Income

$877M

Previous: -$421M+308.3%
Gross Profit

$2.13B

Previous: $809M+163.2%
Cash & Equivalents

$1.06B

Previous: $1.56B-31.9%
Total Assets

$38.3B

Previous: $34.8B+9.8%

Revenue & EPS history

RenaissanceRe · Revenue · Quarterly

$2.21B

Q1 2023+151.6%vs Q1 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

The company expects its three drivers of profit - underwriting, fees, and investment income - to continue to improve. They anticipate strong demand for their products, increased fees from the Capital Partners business, and a favorable investment environment. The company is confident that the attractive reinsurance market will persist, providing opportunities to deploy additional capital.

Tailwinds

  • Ongoing strong demand for products.
  • Increased fees from Capital Partners business.
  • Favorable investment environment.
  • Attractive reinsurance market expected to persist.
  • Opportunities to deploy additional capital.

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 2023

Historical avgQ1 2023

-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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