A month has gone by since the last earnings report for RenaissanceRe (RNR). Shares have lost about 4.6% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is RenaissanceRe due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
RNR Q1 Earnings Beat on Lower Expenses & Strong Investment Results
RenaissanceRe reported first-quarter 2026 operating income of $13.75 per share, which surpassed the Zacks Consensus Estimate by 24.2%. The bottom line improved from the year-ago quarter’s operating loss of $1.49.
Total operating revenues declined 16.6% year over year to $2.6 billion. The top line missed the consensus mark by 10.6%.
The quarterly earnings were aided by a decline in expenses and strong underwriting performance in both segments. Improved combined ratio and fee income also contributed to the upside. However, the upside was partly offset by lower net premiums earned across both segments.
RenaissanceRe’s Quarterly Operational Update
Gross premiums written of $3.5 billion tumbled 16.3% year over year and missed our estimate of $4 billion.
Net premiums earned fell 19.7% year over year to $2.2 billion. The metric fell short of the Zacks Consensus Estimate and our estimate of $2.5 billion.
Net investment income of $420.5 million advanced 3.7% year over year in the quarter under review on the back of increased average invested assets and reallocation of the portfolio. The metric missed the consensus mark of $446.6 million and our estimate of $446.2 million. Fee income of $94.1 million increased more than threefold year over year.
Total expenses came in at $1.6 billion, which dropped 53.5% year over year and came lower than our estimate of $2.2 billion. The year-over-year decrease resulted from a decline in net claims and claim expenses incurred, acquisition costs and operational expenses.
RenaissanceRe’s underwriting income increased to $588.8 million from the prior-year quarter’s loss of $770.6 million. The combined ratio of 73% improved from 128.3% a year ago.
Book value per common share was $250.48 as of March 31, 2026, up 27.7% year over year. Annualized operating return on average common equity improved to 22.3% year over year from negative 2.9%.
RenaissanceRe’s Q1 Segmental Update
Property Segment
The segment’s gross premiums written declined 19.9% year over year to $1.7 billion in the first quarter, lower than our estimate of $2.1 billion.
Net premiums earned of $900.7 million slid 27.8% year over year. The reported figure missed the Zacks Consensus Estimate of $1 billion and our estimate of $1.1 billion.
It generated an underwriting income of $593.9 million, which improved from the loss of $607.2 billion a year ago. The combined ratio improved to 33% from 147.1% in the prior-year quarter.
Casualty & Specialty Segment
The unit recorded gross premiums written of $1.8 billion in the quarter under review, which decreased 12.5% year over year and came lower than our estimate of $2 billion. The metric was hurt by reduced premiums derived from the general casualty and other specialty lines of business.
Net premiums earned tumbled 12.9% year over year to $1.3 billion. The reported figure missed the Zacks Consensus Estimate of $1.5 billion and our estimate of $1.4 billion.
The segment incurred an underwriting loss of $5.1 million, narrower than the prior-year quarter’s loss of $163.4 million. The combined ratio improved to 100.4% from 111.1% a year ago.
RenaissanceRe’s Financial Position (As of March 31, 2026)
RenaissanceRe exited the first quarter with cash and cash equivalents of $1.6 billion, which fell 9.7% from the 2025-end level.
Total assets of $53.7 billion decreased 0.2% from the figure at 2025-end.
Debt amounted to $2.3 billion, inching up marginally from the figure as of Dec. 31, 2025.
Total shareholders’ equity of $11.5 billion fell 0.8% from the 2025-end level.
RenaissanceRe’s Share Repurchase Update
RenaissanceRe bought back common shares worth around $352.5 million in the first quarter. From April 1, 2026, to April 24, additional share repurchases of $104.8 million were made.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
At this time, RenaissanceRe has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock has a grade of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, RenaissanceRe has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
RenaissanceRe belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, RLI Corp. (RLI), has gained 1.8% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
RLI Corp. reported revenues of $453.71 million in the last reported quarter, representing a year-over-year change of +4.3%. EPS of $0.83 for the same period compares with $0.92 a year ago.
RLI Corp. is expected to post earnings of $0.70 per share for the current quarter, representing a year-over-year change of -16.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.7%.
RLI Corp. has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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RenaissanceRe Holdings Ltd. (RNR): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).