Since February 2025, RenaissanceRe has been in a holding pattern, posting a small return of 2.6% while floating around $240.
Is now the time to buy RNR? Find out in our full research report, it’s free.
Why Is RenaissanceRe a Good Business?
Born in Bermuda after the devastating Hurricane Andrew created a crisis in the catastrophe insurance market, RenaissanceRe (NYSE: RNR) provides property, casualty, and specialty reinsurance and insurance solutions to customers worldwide, primarily through intermediaries.
1. Net Premiums Earned Skyrockets, Fueling Growth Opportunities
Markets consistently prioritize net interest income over non-recurring fees, recognizing its superior quality compared to the more unpredictable revenue streams.
RenaissanceRe’s net premiums earned has grown at a 22.2% annualized rate over the last two years, much better than the broader insurance industry.
2. Outstanding Long-Term EPS Growth
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
RenaissanceRe’s EPS grew at an astounding 38.9% compounded annual growth rate over the last five years, higher than its 23% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
3. Growing BVPS Reflects Strong Asset Base
Book value per share (BVPS) serves as a key indicator of an insurer’s financial stability, reflecting a company’s ability to maintain adequate capital levels and meet its long-term obligations to policyholders.
RenaissanceRe’s BVPS increased by 9.6% annually over the last five years, and growth has recently accelerated as BVPS grew at an incredible 27.8% annual clip over the past two years (from $129.98 to $212.15 per share).
Final Judgment
These are just a few reasons why RenaissanceRe ranks highly on our list, but at $240 per share (or 1.1× forward P/B), is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
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