Did RenaissanceRe beat earnings in Q4 2025?

Yes, RenaissanceRe beat operating EPS estimates by 28% ($13.34 vs $10.41 consensus), driven by a stellar property segment combined ratio of 21.8% and strong investment returns.

Why did RNR stock drop after earnings?

Despite the EPS beat, RNR dropped 6.6% after hours due to the Casualty & Specialty segment posting a 103.5% combined ratio (underwriting loss) and net premiums written missing consensus by 4%.

What is RenaissanceRe's combined ratio?

RenaissanceRe's Q4 2025 combined ratio was 71.4% overall — exceptional for the industry. The Property segment achieved 21.8% while Casualty & Specialty was 103.5%.

What is RenaissanceRe's book value per share?

Book value per share reached $247.00 at December 31, 2025, up 27% year-to-date, driven by strong operating performance and investment gains.

RENAISSANCERE HOLDINGS (RNR)·Q4 2025 Earnings Summary

RenaissanceRe Beats EPS by 28% but Stock Drops 7% on Casualty Woes

February 4, 2026 · by Fintool AI Agent

RenaissanceRe delivered a 28% operating EPS beat in Q4 2025, posting $13.34 versus the $10.41 consensus. The property segment was the star performer with a remarkable 21.8% combined ratio — among the best quarterly results in company history. However, the stock dropped 6.6% in after-hours trading as investors focused on the Casualty & Specialty segment's underwriting loss and a 4% miss on net premiums written.

Did RenaissanceRe Beat Earnings?

Yes — decisively on EPS, but mixed on premiums.

Metric	Q4 2025 Actual	Consensus	Surprise
Operating EPS	$13.34	$10.41*	+28.1%
Net Premiums Written	$1.60B	$1.67B*	-4.1%
Combined Ratio	71.4%	~85%*	Better
Book Value/Share	$247.00	—	+27% YTD

*Values retrieved from S&P Global

The EPS beat was driven by three factors:

Exceptional property underwriting: Combined ratio of just 21.8% with $252M favorable prior-year reserve releases
Investment gains: $187M net realized/unrealized gains vs losses in Q4 2024
Tax benefits: $42M Bermuda deferred tax benefit from law changes

The premium miss reflects deliberate discipline — management is walking away from casualty business that doesn't meet return hurdles.

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What's the Divergence Between Segments?

The Q4 results reveal a tale of two businesses:

Segments

Property Segment: Exceptional

Metric	Q4 2025	Q4 2024	Change
Combined Ratio	21.8%	71.6%	-49.8 pts
Underwriting Income	$719M	$267M	+169%
Prior Year Development	(27.4)%	(37.1)%	—

The property segment benefited from:

Light catastrophe quarter: Current year loss ratio of just 21.3% vs 78.0% in Q4 2024
Significant reserve releases: $252M favorable development from prior accident years
Catastrophe sub-segment: Recorded a negative 34.7% combined ratio (net reserve release exceeded premiums)

Casualty & Specialty Segment: Struggling

Metric	Q4 2025	Q4 2024	Change
Combined Ratio	103.5%	103.7%	-0.2 pts
Underwriting Loss	($50M)	($58M)	Improved
Current Year Loss Ratio	70.7%	69.5%	+1.2 pts

The casualty segment remains challenged:

General casualty: Net premiums written down 16% YoY
Professional liability: Down 10% YoY
Bright spot — Credit: Up 97% YoY to $207M

How Did the Stock React?

Down 6.6% after hours despite the EPS beat.

Metric	Value
Regular Close (Feb 3)	$285.95
After-Hours	$266.96
Change	-6.6%
52-Week High	$288.43
52-Week Low	$219.00
YTD Performance	+27%

The selloff likely reflects:

Casualty segment concerns: Fourth consecutive quarter of underwriting losses
Premium decline: Net premiums written down 9% YoY
Valuation concerns: Stock near 52-week highs at 1.16x book value

What Changed From Last Quarter?

Combined Ratio Improvement

Period	Combined Ratio	Driver
Q1 2025	128.3%	LA wildfires impact
Q2 2025	75.1%	Normal cat activity
Q3 2025	68.4%	Favorable development
Q4 2025	71.4%	Light cat + reserves

Investment Results Swing

Metric	Q4 2025	Q4 2024	Change
Net Investment Income	$447M	$429M	+4%
Realized/Unrealized Gains	$187M	($630M)	+$817M
Total Investment Return	7.5% annualized	(2.1)%	+9.6 pts

The investment swing from Q4 2024's $630M loss to Q4 2025's $187M gain added ~$817M to pretax income — roughly $18 per share.

Full Year 2025 Performance

Metric	FY 2025	FY 2024	Change
Net Income	$2.65B	$1.83B	+44%
Operating Income	$1.86B	$2.23B	-17%
Operating EPS	$39.10	$42.99	-9%
Combined Ratio	87.2%	83.9%	+3.3 pts
Operating ROE	18.2%	23.5%	-5.3 pts
Book Value/Share	$247.00	$195.77	+26%

The operating income decline reflects Q1 2025's LA wildfire losses ($1.1B pretax impact). Excluding that, underlying performance improved.

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What's the Investment Portfolio Doing?

RenaissanceRe runs a $36B investment portfolio that contributed significantly to results.

Asset Class	Fair Value	% of Total
U.S. Treasuries	$10.6B	29%
Corporate Bonds	$8.5B	24%
Short-Term	$4.8B	13%
Mortgage-Backed	$2.6B	7%
Catastrophe Bonds	$1.6B	4%
Other	$8.0B	22%

Key portfolio stats:

Average duration: 2.6 years
Yield to maturity: 4.8%
Credit quality: 84% investment grade

The $226M unrealized gain on fixed maturities (vs $188M loss at year-end 2024) added $3.86 per share to book value .

Capital Allocation & Buybacks

RenaissanceRe repurchased 6.2M shares during 2025, reducing the share count from 50.2M to 44.0M — a 12% reduction.

Share Count	Dec 31, 2025	Dec 31, 2024	Change
Shares Outstanding	44.0M	50.2M	-12%
Book Value/Share Impact	+$6-8 estimated	—	—

The aggressive buyback at an average price below book value was accretive to shareholders.

Managed Joint Ventures & Fee Income

RenaissanceRe manages $7.6B of third-party capital across DaVinci, Medici, Vermeer, and Fontana.

Metric	Q4 2025	Q4 2024	Change
Management Fees	$52M	$54M	-4%
Performance Fees	$50M	$24M	+108%
Total Fee Income	$102M	$77M	+32%

DaVinci, the largest vehicle at $3.7B of third-party capital, posted a combined ratio of just 16.3% in Q4 2025 — extraordinary performance.

Key Risks to Monitor

Casualty reserve adequacy: Four quarters of underwriting losses suggest potential reserve strengthening ahead
Premium contraction: Net premiums written down 9% in Q4 — disciplined or losing market share?
Concentration risk: Property segment now ~40% of premiums but 120% of underwriting income
Climate volatility: Q1 2025 wildfires show exposure to increasing catastrophe frequency

Forward Catalysts

1/1 Renewals: January renewal season pricing will indicate market conditions
Q1 2026 earnings: Will show if Q4's property performance is sustainable
Casualty turnaround: Any signs of loss ratio improvement will be rewarded
Capital deployment: Potential M&A or additional share repurchases

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Bottom Line

RenaissanceRe delivered on earnings with a 28% EPS beat, but the stock sold off on concerns about the Casualty & Specialty segment's persistent underwriting losses and declining premiums. The property segment's exceptional 21.8% combined ratio won't repeat every quarter, and investors are questioning whether the current valuation (1.16x book) is justified given the mixed outlook.

Bull case: Property pricing remains firm, casualty losses stabilize, investment income provides downside protection, aggressive buybacks continue accretion.

Bear case: Casualty reserves need strengthening, market share losses accelerate, catastrophe activity normalizes, book value growth slows.

This analysis was generated by Fintool AI Agent using company filings and market data. For the full financial supplement, see RNR Documents.