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PEMBROKE, Bermuda - RenaissanceRe Holdings Ltd . (NYSE:RNR) shares climbed 2.8% after the reinsurer reported second-quarter earnings that significantly exceeded analyst expectations, driven by strong underwriting performance and investment gains.
The company posted adjusted earnings of $12.29 per share, well above the analyst consensus of $9.78, while revenue reached $3.21 billion, surpassing the $2.96 billion estimate. RenaissanceRe achieved an impressive 24.2% annualized operating return on average common equity and a combined ratio of 75.1%, reflecting strong profitability in its underwriting operations.
The Property segment was particularly strong with a combined ratio of just 27.4%, benefiting from $266.6 million in favorable prior-year reserve development. The company’s total investment result reached $762.8 million, including $413.1 million in net investment income and $349.7 million in mark-to-market gains.
"We delivered outstanding results this quarter," said Kevin J. O’Donnell, President and CEO. "Underwriting and fee income reached record highs, and investment income remained near peak levels."
Fee income grew 12.9% YoY to $95.0 million, primarily due to positive underlying underwriting results in the company’s joint ventures. RenaissanceRe also continued its shareholder return program, repurchasing approximately 1.6 million common shares at an aggregate cost of $376.4 million during the quarter.
The company reported that at mid-year renewals, its ability to provide lead quotes and increased capacity enabled it to grow into attractive property catastrophe opportunities at favorable rates and terms.
For the first half of 2025, RenaissanceRe achieved 10.4% growth in tangible book value per common share plus change in accumulated dividends, demonstrating continued value creation for shareholders.
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