RenaissanceRe Upgraded To Outperform: Analyst Eyes Potential Gains From AIG Transaction
Portfolio Pulse from Lekha Gupta
BMO Capital Markets analyst Michael Zaremski upgraded RenaissanceRe Holdings Ltd (RNR) to Outperform from Market Perform, raising the rating from $198 to $216. The upgrade is based on expected gains from RNR's recent acquisition of American International Group's (AIG) reinsurance business and anticipated benefits from increased demand for property reinsurance due to population and wage growth in catastrophe-prone regions. However, Zaremski expressed caution about RNR's reinsurance pricing power in 2024.
July 11, 2023 | 7:45 pm
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NEUTRAL IMPACT
American International Group's (AIG) recent sale of its reinsurance business to RenaissanceRe is expected to benefit RNR, according to BMO Capital Markets analyst Michael Zaremski.
While the sale of AIG's reinsurance business to RNR is expected to benefit RNR, the direct impact on AIG's stock is not clear from the news. Therefore, the short-term impact on AIG's stock price is neutral.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
RenaissanceRe's stock has been upgraded by BMO Capital Markets analyst Michael Zaremski, who expects the company to benefit from its recent acquisition of AIG's reinsurance business and increased demand for property reinsurance.
The upgrade by BMO Capital Markets analyst Michael Zaremski is based on expected gains from RNR's recent acquisition of AIG's reinsurance business and anticipated benefits from increased demand for property reinsurance. This positive outlook is likely to boost investor confidence and potentially drive the stock price up in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100