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On Thursday, Keefe, Bruyette & Woods updated their financial outlook on RenaissanceRe Holdings (NYSE:RNR), increasing the price target to $286 from the previous $283 while maintaining an Outperform rating. The decision follows RenaissanceRe's second-quarter earnings report and subsequent conference call, which provided fresh insights into the company's performance and future expectations.
The firm's analyst cited several reasons for the raised target, including RenaissanceRe's second-quarter earnings outperformance and the anticipation of faster near-term investment income growth. Additionally, more reserve releases and lower catastrophe loss and expense ratios were factored into the revised estimates, despite expectations of slower premium growth and higher core loss ratios.
For the fiscal years ahead, Keefe, Bruyette & Woods has adjusted its earnings per share (EPS) estimates for RenaissanceRe. The 2024 EPS estimate has been raised to $38.15 from $36.55, and the 2025 estimate has increased to $36.45 from $35.60. The firm also introduced an initial 2026 EPS estimate of $36.80, which assumes a deceleration in premium growth and a year-over-year increase in the core loss ratio.
Keefe, Bruyette & Woods expressed confidence that the favorable conditions in the reinsurance market will continue to support strong underwriting results for RenaissanceRe. This, in turn, is expected to contribute to the upward trajectory of the company's shares in the stock market.
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