What Happened?

Shares of reinsurance provider RenaissanceRe (NYSE: RNR) jumped 4.9% in the afternoon session after the company reported strong fourth-quarter 2025 financial results that significantly surpassed expectations. 

The reinsurer announced fourth-quarter adjusted earnings of $13.34 per share, which beat analyst estimates by 28.2% and marked a 65.5% increase from the same period last year. This strong performance was driven by excellent underwriting results, as its combined ratio came in at 71.4%, significantly better than the 91.3% analysts had forecast. A combined ratio below 100% indicates underwriting profitability. Adding to the positive results, the company's book value per common share grew by 26.2% for the full year, underscoring a period of strong financial health.

After the initial pop the shares cooled down to $300.23, up 5% from previous close.

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What Is The Market Telling Us

RenaissanceRe’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 3 months ago when the stock gained 8.2% on the news that the company reported third-quarter 2025 results that easily surpassed Wall Street's profit forecasts. The reinsurance provider posted adjusted earnings of $15.62 per share, a significant 64.4% beat compared to analysts' average estimate of $9.50 per share. This strong performance was supported by a combined ratio of 68.4%, which was much better than the 81% Wall Street had anticipated. A combined ratio below 100% indicates an underwriting profit, so a lower number is better. In addition, the company's revenue of $3.2 billion, while down year on year, came in 9.7% ahead of consensus expectations.

RenaissanceRe is up 10.3% since the beginning of the year, and at $300.23 per share, has set a new 52-week high. Investors who bought $1,000 worth of RenaissanceRe’s shares 5 years ago would now be looking at an investment worth $1,898.

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