UPDATE 1-RenaissanceRe Holdings Q4 profit trumps market
* Q4 oper. EPS $2.82 vs est $2.50
* Investment income boosts results
* Expenses down 7 pct
Feb 9 (Reuters) - RenaissanceRe Holdings Ltd (RNR.N), a Bermuda reinsurer, reported quarterly profit above Wall Street estimates, helped by strong net investment income.
Net income for the fourth quarter was $211.8 million, or $3.38 a share, compared with net loss of $55.2 million, or 91 cents a share, in the year-ago period.
Operating income, a measure commonly used by analysts, rose to $177.7 million, or $2.82 a share, compared with $28.7 million, or 47 cents a share, in the year-ago period.
Analysts on average expected the company to earn $2.50 a share, according to Thomson Reuters I/B/E/S.
"These earnings are a result of a relatively low level of insured catastrophe losses, favorable development on prior -year reserves and solid investment results," Chief Executive Neill Currie said in a statement.
Net investment income for the quarter was $60.7 million, compared with an investment loss of $82.7 million in the year-ago period.
"We are pleased with the results of our January 1 renewals and have constructed an attractive portfolio of business for 2010," the CEO said.
As a reinsurer, RenaissanceRe provides backup coverage to property insurers when catastrophes such as hurricanes strike.
Shares of the company closed at $52.26 Tuesday on the New York Stock Exchange.
The stock has gained 33 percent in value since touching a low of $39.37 in February last year. (Reporting by Sweta Singh in Bangalore; Editing by Unnikrishnan Nair)
Trending On Reuters
We are living longer but not creating financial plans to keep pace. Advisers give tips on how to make sure you don’t outlive your money. Video