NYSE$RNR

RenaissanceRe Holdings Ltd · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

RenaissanceRe's Q4 2022 financial results were reported, featuring net income available to common shareholders of $448.1 million and operating income of $322.2 million.

RenaissanceRe reported an excellent quarter with a 29.6% annualized operating return on average common equity, driven by strong underwriting results, significantly increased net investment income, and stable management fees. The company demonstrated leadership and discipline at the January renewal, achieving a step change in rate and terms investors required, while providing the reinsurance capacity customers needed.

  • 41.2% annualized return on average common equity and 29.6% annualized operating return on average common equity in Q4 2022.
  • Net investment income of $211.2 million in Q4 2022, a 162.5% growth compared to Q4 2021.
  • 21.2% growth in net premiums written in 2022, driven by 41.6% growth in Casualty and Specialty.
  • Casualty and Specialty combined ratio of 93.7% in Q4 2022 and 95.3% in 2022.

Headline financials

Total Revenue

$2.03B

Previous: $1.39B+45.7%
EPS (adj)

$7.33

Previous: $4.71+55.6%
Combined Ratio

80.5%

Previous: 79.4%+1.4%
Net Income

$448M

Previous: $288M+55.4%
Operating Income

$322M

Previous: $307M+5.0%
Gross Profit

$2.02B

Previous: $1.34B+50.8%
Cash & Equivalents

$1.19B

Previous: $1.86B-35.8%
Total Assets

$36.6B

Previous: $34B+7.6%
Stock-Based Comp

$45.2M

Previous: $40M+13.0%

Revenue & EPS history

RenaissanceRe · Revenue · Quarterly

$2.03B

Q4 2022+45.7%vs Q4 2021
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

RenaissanceRe anticipates continuing strong demand for its products and expects a successful year in 2023.

Tailwinds

  • Expectations of continuing strong demand for RenaissanceRe's products.
  • Ample capital to meet the demand.
  • Anticipation of one of the most successful years in RenaissanceRe's history.
  • Demonstrated leadership and discipline at the January renewal.
  • Achieved a step change in rate and terms investors required.

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 Q4 2022

Historical avgQ4 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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