On May 30, 2014,
RenaissanceRe Holdings Ltd.
) reached a new 52-week high of $104.53. The rally was driven by
the company's strong first quarter-earnings, core business
strengthening initiatives and strong capital deployment over the
past one year.
RenaissanceRe's solid first-quarter 2014 results comprised an
11.89% positive earnings surprise. Notably, this property and
casualty insurer beat earnings estimates in three out of the
trailing four quarters with an average surprise of 29.76%.
Following RenaissanceRe's earnings release on Apr 29, 2014, its
shares gained 2.3% to close at $104.17 in the last trading session.
The one-year return of the stock was 21.17%, much above the S&P
500's return of 17.96% and that of other players in the industry
Platinum Underwriters Holdings Ltd.
) with returns of 12.34% and 18.44% respectively, over the same
Over the past one year, RenaissanceRe has been adept in
strengthening its core operations, which contributed to the price
appreciation of its shares. The company divested its U.S.-based
weather and weather related energy risk management unit, RenRe
Energy Advisors Ltd. (REAL) to MunichRe. Moreover, to strengthen
its global operations, ReaniassanceRe rolled out its U.S. platform,
RenaissanceRe Underwriting Managers U.S. LLC in Jul 2013.
The company's capital deployment initiatives have also been
impressive. In Feb 2014, RenaissanceRe increased its quarterly
dividend by 3.6% to 29 cents per share. This marked the nineteenth
consecutive increase in annual dividend by the company. Moreover,
RenaissanceRe increased its share repurchase authorization twice
within the last six months. All these endeavors reflect the
company' strong commitment toward enhancing shareholders' worth,
which would help it to retain their confidence going forward.
Such business strengthening initiatives and capital deployment keep
us optimistic about the stock's performance. The full-year 2014
Zacks Consensus Estimate increased 1.6% to $9.65 after the company
reported its first-quarter results, as most of the estimates moved
Currently, RenaissanceRe caries a Zacks Rank #2 (Buy). Other
players in the same sector, which look attractive at current
levels, include PartnerRe, Platinum Underwriters and
Endurance Specialty Holdings Ltd.
). While Endurance Specialty sports a Zacks Rank #1 (Strong
Buy), Partner Re and Platinum Underwriters have the same Zacks Rank
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