RenaissanceRe Estimates $180 Million Loss From Storm Uri
Reinsurance and insurance products provider RenaissanceRe Holdings Ltd. sees losses due to Winter Storm Uri having a net negative impact of about $180 million on 1Q results.
RenaissanceRe (RNR) President and Chief Executive Officer, Kevin J. O’Donnell said, “We extend our sympathies to all those affected by Winter Storm Uri. Consistent with our track record, we will support our customers in understanding and managing this U.S. winter storm while helping communities recover through rapid payment of claims.”
O’Donnell added, “We are in a strong capital position heading into the mid-year renewals and anticipate additional opportunities to write attractive risk.” (See RenaissanceRe stock analysis on TipRanks)
For 1Q, RenaissanceRe anticipates reporting a net loss attributable to common stockholders and nominal operating income available to them.
Last month, Morgan Stanley analyst Michael Phillips reiterated a Hold rating on the stock and raised his price target to $195 (13.8% upside potential) from $194.
Wells Fargo analyst Elyse Greenspan has a Buy rating on the stock but lowered the price target to $220 (28.4% upside potential) from $229. Greenspan thinks the stock will get a lower multiple from the market as the company’s growth is mostly attributable to casualty rather than catastrophe.
The 2 ratings add up to a Moderate Buy consensus rating alongside an average analyst price target of $207.50 implying a 21.1% upside potential.
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