In an effort to boost shareholder value, the board of
RenaissanceRe Holdings Limited
) approved an increase in the company's share buyback program.
However, the news did not have much impact on the shares of the
company as share price declined marginally by 0.25% to $94.20 on
Nov 15, 2013.
With this increase, the company's total authorization currently
stands at $500 million. This repurchase program has no expiry
The aforementioned program is an extension to the previous
authorization under which RenaissanceRe was left with $489.2
million for repurchases. Previously in Aug 2013, RenaissanceRe
had approved a renewal of its share repurchase program which
brought the total authorization to $500 million. During the last
reported quarter, the company purchased 0.22 million shares for
RenaissanceRe's financial strength allows it to continue with its
buyback program. As of Sep 30, 2013, cash and cash
equivalents stood at $266.4 million and cash from operations
stood at $385.8 million.
RenaissanceRe delivered operating earnings per share of $3.36 in
the third quarter of 2013, higher than the year-ago earnings of
$2.07 per share. Share buybacks should boost the bottom line
further. The Zacks Consensus Estimates for 2013 is currently
$11.09, representing a 40.79% improvement from the year-ago
Additionally, the company declared a quarterly dividend of 28
cents per share payable on Dec 31, 2013 to shareholders of record
as of Dec 13, 2013. RenaissanceRe has maintained a steady
dividend payout, including $36.96 million paid in the first nine
months of 2013.
The company continues to focus on improving revenues, expanding
margins and fortifying its capital structure.
RenaissanceRe currently carries a Zacks Rank #3 (Hold). However,
among others in the property and casualty insurance space that
are worth considering,
Cincinnati Financial Corp.
Montpelier Re Holdings Ltd.
Navigators Group Inc.
) carry a favorable Zacks Rank #1 (Strong Buy).
CINCINNATI FINL (CINF): Free Stock Analysis
MONTPELIER RE (MRH): Free Stock Analysis
NAVIGATORS GRP (NAVG): Free Stock Analysis
RENAISSANCERE (RNR): Free Stock Analysis
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