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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Renaissancere Holdings Ltd. To summarize, we found that Renaissancere Holdings Ltd ranked in the 80th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Renaissancere Holdings Ltd, consider:
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 32.26% of tickers in our DCF set.
As a business, Renaissancere Holdings Ltd experienced a tax rate of about 1% over the past twelve months; relative to its sector (Financial Services), this tax rate is higher than merely 24.22% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CBOE, ECPG, RGA, FOCS, and UNM can be thought of as valuation peers to RNR, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
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