Reinsurance provider RenaissanceRe (NYSE: RNR) will be reporting results this Wednesday after the bell. Here’s what to look for.
RenaissanceRe missed analysts’ revenue expectations last quarter, reporting revenues of $2.19 billion, down 36.8% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but a significant miss of analysts’ net premiums earned estimates.
Is RenaissanceRe a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting RenaissanceRe’s revenue to decline 16.7% year on year, a reversal from the 13.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. RenaissanceRe has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at RenaissanceRe’s peers in the insurance segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Travelers posted flat year-on-year revenue, missing analysts’ expectations by 0.9%, and W. R. Berkley reported revenues up 1.2%, falling short of estimates by 1.4%. Travelers traded up 8.9% following the results.
Read our full analysis of Travelers’s results here and W. R. Berkley’s results here.
There has been positive sentiment among investors in the insurance segment, with share prices up 9.8% on average over the last month. RenaissanceRe is up 6.9% during the same time and is heading into earnings with an average analyst price target of $339 (compared to the current share price of $321.59).
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