RenaissanceRe Holdings Ltd. provides reinsurance and insurance coverages and related services in the United States and internationally. The company operates in three segments: Catastrophe Reinsurance, Specialty Reinsurance, and Lloyds. The company was founded in 1993 and is based in Pembroke, Bermuda.
RNR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Renaissancere Holdings Ltd with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Renaissancere Holdings Ltd ranked in the 79th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Renaissancere Holdings Ltd ended up being:
RNR's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 33.83% of tickers in our DCF set.
Relative to other stocks in its sector (Financial Services), Renaissancere Holdings Ltd has a reliance on debt greater than just 22.42% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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Though Hurricane Laura wasn't as horrendous as feared, reinsurers aren't out of the woods yet.With Laura's damages estimated at $8B-$12B falling short of the initial guesses of $15B or more, the COVID-19 pandemic is having a significant impact on the reinsurance industry via direct losses, reduced earnings and lower investment...
Insurer/reinsurer shares tend to underperform before storms make landfall then outperform on average once they hit land, writes Goldman Sachs analyst Yaron Kinar in a note to clients.Still, Kinar points out, "outperformance depends on whether or not ensuing price expectations are robust."Hurricane Laura is expected to become a Category 4...
With us to discuss today's results are Kevin O'Donnell, President and Chief Executive Officer; and Bob Qutub, Executive Vice President and Chief Financial Officer. For me, three accomplishments in particular stand out: First, we raised over $1 billion of new common equity, building a fortress balance sheet in anticipation of significant future opportunities.
PEMBROKE, Bermuda--(BUSINESS WIRE)--RenaissanceRe Holdings Ltd. (NYSE: RNR) (the “Company” or “RenaissanceRe”) today reported net income available to RenaissanceRe common shareholders of $575.8 million, or $12.63 per diluted common share, in the second quarter of 2020, compared to net income available to RenaissanceRe common shareholders of $367.9 million, or $8.35 per diluted common share, in the second quarter of 2019. Operating income available to RenaissanceRe common shareholders was $190.1