- Bermuda-based RenaissanceRe ( NYSE: RNR ) shares are slipping 1.2% in late Tuesday morning trading after Jefferies analyst Yaron Kinar downgraded the reinsurance provider to Hold from Buy.
- The company's realized investment are expected losses to curtail share repurchases, Kinar wrote in a note to clients.
- Kinar has modeled no buybacks through 2022 compared with the consensus of more than $400M, the note said. In turn, he reduced his EPS estimate to under consensus for 2022 to 2023.
- The analyst laid out some other factors driving the downgrade, including, "(2) lower premium growth estimates, to reflect both limited appetite for Property and one-offs in prior year and prior quarter (reinstatements, EPI). (3) higher attritional loss ratio due to mix shift."
- By comparison, SA Quant Rating screens RenaissanceRe ( RNR ) as a Hold, while the Average Wall Street Analyst views the stock as a Buy.
- In mid-May, RenaissanceRe's board of directors approved a renewal of the company's authorized share repurchase program .
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RenaissanceRe cut to Hold at Jefferies as investment losses may curtail buybacks