RenaissanceRe Worth A Look With The Street Down On Prop-Cat Reinsurance

It can be difficult to generate attractive long-term returns investing in insurance stocks, as long-term appreciation is typically tied to book value growth that rarely exceeds the single digits, but if you're willing to zig when others zag, you can do better. That brings me to RenaissanceRe (RNR) - RenRe is still widely regarded as one of the best reinsurance names in the business, probably the best in property catastrophe reinsurance ("prop-cat"), but with the Street down on the prospects for reinsurance, there could be an opportunity here.

To be sure, the reinsurance business is in general a less attractive business that primary P&C (particularly specialty P&C) over the long term, but that doesn't mean there isn't money to be made here, particularly by well-run companies with diverse capabilities. Led by a proven team that is putting a lot of capital into the market today, I believe RenRe is set to outperformance and offers a double-digit prospective annualized return.

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RenaissanceRe Worth A Look With The Street Down On Prop-Cat Reinsurance