Morgan Stanley Reports On RNR Lowered EPS Estimates

Morgan Stanley has released a report on the lowered first quarter estimate for RenaissanceRe Holdings Ltd. RNR after the New Zealand earthquake and the Australian flood.

Morgan Stanley writes, "RNR pre-announced 1Q catastrophe for Australia
and New Zealand of $220mm, which was close to our $206mm estimate. The New Zealand earthquake loss was higher than our $166mm estimate with the Australian flood loss of $30mm below our figures.
Japan loss remains uncertain but expected to be “significant and likely material”. We note that management used the same language in its 10K following the New Zealand earthquake and we expect Japan losses to be higher than our $150mm estimate."

RNR has an $85 PT and closed at $63.90 yesterday.