RenaissanceRe Stock Still Has Growth Potential

RenaissanceRe Stock Still Has Growth Potential

The stock has gained 11% since the March 23 lows of the last year, and at the current price of $146 per share, we believe RenaissanceRe Stock (NYSE: RNR) has more upside potential. RenaissanceRe, a provider of reinsurance, insurance, and other related business services, has seen its stock rally from $132 to $146 off the 2020 March bottom compared to the S&P which moved around 90%. While the stock is lagging the broader markets by a huge margin, it has lost around 12% YTD. That said, the company has reported an increase in revenues over the recent quarters on a year-on-year basis - the top line has grown 20% y-o-y to a consolidated figure of $5. 13 billion for the last 4 quarters. However, RNR stock has lost around 20% over the last twelve months. Hence, there is a mismatch between the stock growth and revenues. The stock has suffered due to escalating expense levels and a drop in net investment income, which has weighed on the company's profitability. RenaissanceRe's stock has partially reached the level it was at before the drop in February 2020 due to the coronavirus outbreak becoming a pandemic. Despite the meager rise since the March