Executive Summary

RNR delivered a strong Q3 with operating EPS of $15.62 and combined ratio of 68.4%, driven by light catastrophe activity, significant prior-year reserve releases in Property, and solid investment income; book value per share rose 9% q/q and tangible BVPS+dividends rose 10.3% q/q .
Results materially beat Street: operating EPS $15.62 vs $9.50 consensus and total revenues $3.20B vs $1.93B consensus, as underwriting and investment performance exceeded expectations (see Estimates Context) .
Property segment posted a 15.5% combined ratio (adjusted 14.2%) on low current-year losses and $383.7M of favorable prior-year development; Casualty & Specialty ran at 101.4% (adjusted 99.3%) on higher attritional loss trends .
Capital return remains a catalyst: $205M of buybacks in Q3 plus $100M post-quarter; Board renewed the repurchase authorization to $750M and declared a $0.40 dividend on Nov 5, 2025 .
Management expects 1/1/26 property-cat rates to decline ~10% but remain above rate adequacy; Q4 guide points to ~$360M other property NPE, ~$1.5B casualty & specialty NPE, adjusted CR in high-90s, and ~$50M mgmt fees/$30M performance fees .

What Went Well and What Went Wrong

What Went Well

Property outperformance: 15.5% combined ratio (adjusted 14.2%) as current-year cat losses were light and prior-year development was strongly favorable ($236.8M in catastrophe, $146.8M in other property) .
Fee and investment engines: Fee income rose 24% to $101.8M; total investment result was $750.2M with $438.4M net investment income and $311.9M MTM gains, aided by equity/gold futures and falling yields on fixed income .
Strategic execution and confidence: “We delivered exceptional results… benefited from low catastrophe activity and continued outperformance in our three drivers of profit,” CEO Kevin O’Donnell noted, emphasizing sustainable earnings power and long-term value creation .

What Went Wrong

Casualty & Specialty pressure: Combined ratio of 101.4% (adjusted 99.3%) on higher attritional losses; purchase accounting added ~50 bps of adverse prior-year impact .
YoY revenue headwind from lower MTM gains: Total revenues fell to $3.20B from $3.97B in Q3’24 largely as last year included $943.7M investment gains vs $311.9M this quarter .
Expense ratio optics in Property: Underwriting expense ratio rose 2.6 pts (acquisition +1.2 pts; operating +1.4 pts), reflecting lower net premiums earned from lower reinstatement premiums .

Financial Results

Headline metrics vs prior periods (USD Millions unless noted):

Metric	Q3 2024	Q2 2025	Q3 2025
Total Revenues ($)	$3,973.8	$3,206.6	$3,198.2
Net Income per Diluted Share ($)	$22.62	$17.20	$19.40
Operating EPS ($)	$10.23	$12.29	$15.62
Underwriting Income ($)	$393.8	$601.7	$770.2
Combined Ratio (%)	84.8%	75.1%	68.4%
Net Investment Income ($)	$423.9	$413.1	$438.4
Fee Income ($)	$82.1	$95.0	$101.8

Actual vs consensus (S&P Global):

Metric	Q3 2025 Consensus	Q3 2025 Actual
Operating EPS ($)	9.50*	15.62
Total Revenues ($)	1,925.0*	3,198.2
EPS Estimate Count (#)	15*	—
Revenue Estimate Count (#)	1*	—

Values retrieved from S&P Global.*

Segment performance (USD Millions unless noted):

Segment / Metric	Q3 2024	Q2 2025	Q3 2025
Property – Net Premiums Earned ($)	994.8	868.0	936.9
Property – Underwriting Income ($)	394.7	630.2	791.5
Property – Combined Ratio (%)	60.3%	27.4%	15.5%
Casualty & Specialty – Net Premiums Earned ($)	1,588.2	1,544.1	1,496.9
Casualty & Specialty – Underwriting Income ($)	(0.9)	(28.5)	(21.3)
Casualty & Specialty – Combined Ratio (%)	100.1%	101.8%	101.4%

Key performance indicators:

KPI	Q3 2024	Q2 2025	Q3 2025
Book Value per Share ($)	202.01	212.15	231.23
Tangible BVPS + Accum Div ($)	210.45	223.74	243.85
ROE (annualized)	47.1%	33.7%	34.9%
Operating ROE (annualized)	21.7%	24.2%	28.2%
Fee Income ($)	82.1	95.0	101.8
Total Investment Return (annualized)	18.3%	9.4%	8.9%

Why the moves:

Beat driven by: (i) Property current-year loss ratio down (26.7%) on low cats, (ii) ~$384M PYD benefit in property classes, (iii) healthy investment gains from derivatives and fixed income MTM, and (iv) fee income strength .
YoY revenues lower on much smaller MTM gains than last year’s unusually strong Q3’24; however, underwriting and fee engines outweighed this for operating EPS growth .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Other Property NPE ($)	Q4 2025	—	~360	New
Casualty & Specialty NPE ($)	Q4 2025	—	~1,500	New
Adjusted Combined Ratio	Q4 2025	—	High 90s	New
Management Fees ($)	Q4 2025	—	~50	New
Performance Fees ($)	Q4 2025	—	~30 (absent large losses/PYD)	New
Operating Expense Ratio	Q4 2025	—	~Flat; year-end accruals may impact	New
Share Repurchases	Ongoing	—	Continue repurchases given valuation/capital position	New
Dividend per share ($)	Q4 2025	$0.40 (historical)	$0.40 payable Dec 31, 2025	Maintained
Repurchase Authorization ($)	Ongoing	Prior program	Renewed to $750M total authorization	Increased flexibility

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q1)	Current Period (Q3)	Trend
Property-cat pricing & returns	Mid-year renewals strong; grew cat; rate reductions offset by opportunities	Expect ~10% rate decline into 1/1/26 but still above rate adequacy; focus on margin over growth	Moderating rates, discipline maintained
Fee income strategy	Fee income recovering post Q1 cat losses; vehicles like Medici/DaVinci contribute	$101.8M fees; majority flows through NCI; mgmt ~$53M, performance ~$49M	Scaling, resilient earnings driver
Investments & derivatives	Derivative allocations rising; strong MTM gains in Q1/Q2	$258M retained MTM led by equity/gold futures; gold seen as portfolio hedge	Active risk shaping supports returns
Casualty market & trend	Pulled back in US GL; rate vs trend improving but cautious; higher acquisition ratio mix	Segment ~high 90s adj CR; attritional losses elevated; reserve posture stable	Conservative stance; float accretion
Capital management	Heavy repurchases post Validus; continued buybacks	$205M Q3, $100M post-Q3; renewed $750M authorization	Ongoing, accretive deployment
California wildfires impact	Q1 large loss; reinstatement premium effects	Maintains appetite; rerating deemed sufficient; sees growth opportunities	Risk-adjusted appetite intact

Management Commentary

Strategy and earnings durability: “This benefited from low catastrophe activity and continued outperformance in our three drivers of profit - underwriting, fee, and net investment income… we remain confident in the sustainability of our strong earnings” — Kevin O’Donnell, CEO .
Earnings profile: “Operating income per share was $15.62… our underwriting and fee businesses, as well as our investment portfolio, have reached a scale where earnings are consistently higher and large individual loss events are having a smaller impact” — CFO Bob Qutub .
1/1/26 outlook: “Rates could be down about 10%… [but] rate adequacy remains strong; terms/retentions should largely persist; we’ll prioritize margin over growth” — CEO & CUO .

Q&A Highlights

Base return composition: CFO reiterated a baseline ~11–12% from investment income plus ~3% from fees to operating ROE, before underwriting contribution .
Property-cat rate dynamics: Management expects ~10% average rate decline at 1/1/26 but emphasized continued rate adequacy and discipline; focus on top-end layers where demand persists and terms hold .
Third-party capital: Continued strong access; not expected to drive 2026 pricing; some new interest in longer-tail liabilities as part of investment strategies .
Gold/derivatives: Gold futures seen as a strategic hedge given geopolitics; contributed meaningfully to Q3 MTM gains; approach unchanged despite volatility .
California exposure: Appetite remains; sees favorable rerating post-wildfires; primary issues more acute for insurers than reinsurers .

Estimates Context

Q3 2025 beats: Operating EPS $15.62 vs $9.50 consensus; total revenues $3.20B vs $1.93B consensus, reflecting underwriting outperformance and strong investment gains (see Financial Results tables). Values retrieved from S&P Global.*
Forward consensus (for context):
- Q4 2025 EPS $8.55*, Revenue $1.76B*; Q1 2026 EPS $10.06*, Revenue $3.22B*. Target price consensus ~$285.79* (stable) (counts: EPS 16 for Q4; Rev 2 for Q4) (S&P Global).*
Implications: Street likely to raise near-term EPS on margin strength (Property) and fee/investment tailwinds, while moderating medium-term property-cat assumptions for 2026 given expected mid-single-to-low-teens rate declines.