Zacks Investment Research upgraded shares of RenaissanceRe Holdings Ltd. (RNR) from UNDERPERFORM to NEUTRAL on October 15, 2014, with a target price of $104.00.
We are upgrading our recommendation on RenaissanceRe to Neutral based on upward estimate revisions. The company's second-quarter earnings fell short of the Zacks Consensus Estimate but improved year over year on proper risk-assessment. Going ahead, the adverse effects of weak investment portfolio and catastrophe exposures are likely to weigh on positives like risk-assessment and disciplined underwriting. Yet, headwinds from volatile investment income, intense competition and risks from catastrophe businesses raise concerns. Nevertheless, restructuring, accelerated capital deployment, strategic divestitures and strong ratings raise creditworthiness and boost investor confidence. However a soft financial position and a decline in gross premiums written in the quarter raise caution.
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