10 Best Extremely Profitable Stocks to Buy Now

8. RenaissanceRe Holdings Ltd. (NYSE:RNR)

5 Year Revenue Growth: 28.24%

5 Year Net Income Growth: 42.01%

TTM Net Income: $3.56 Billion

Number of Hedge Fund Holders: 29 

RenaissanceRe Holdings Ltd. (NYSE:RNR) is a company that specializes in reinsurance and insurance. The company operates through two main segments including Property Segment and Casualty and Specialty Segment. Reinsurance products include providing insurance to other insurance companies helping them manage risk by covering some of their potential losses. Insurance products offer direct insurance solutions, including coverage directly to clients for various risks.

During the third quarter results for fiscal 2024, the company reported strong financial performance, highlighting key achievements and strategies that have contributed to its success. The company earned over $540 million in operating income for the quarter, resulting in a 22% return on average common equity. Year-to-date, the total operating income reached $1.8 billion, with a 26% return on equity.

Management attributed its success to three main areas including underwriting, investments, and capital partners business. RenaissanceRe Holdings Ltd. (NYSE:RNR) has been able to expand aggressively in favorable market conditions, particularly in its Property and Specialty segments, which have seen year-to-date topline growth rates between 35% and 75%. Moreover, Elevated interest rates have allowed the company to generate significant investment income. Net investment income for the quarter was $423.9 million, up 28.8% year-over-year.

Looking ahead, RenaissanceRe Holdings Ltd. (NYSE:RNR) expects continued opportunities for growth in both its Property Catastrophe and Casualty segments. The demand for reinsurance is projected to increase, particularly with an estimated rise of $10 billion in U.S. catastrophe limit purchases by 2025. It is one of the best extremely profitable stocks to buy now.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding RenaissanceRe Holdings Ltd. (NYSE:RNR) in its first quarter 2024 investor letter:

“Earnings for RenaissanceRe Holdings outstripped expectations as RenaissanceRe Holdings Ltd. (NYSE:RNR) showed better rates of underwriting, higher fee income, and increased investment income—all of which also exceeded levels of industry peers. Pricing also appeared to remain strong for this year and into 2025, and the result lifted RenRe’s shares by 20%.”