RenaissanceRe Holdings Ltd. RNR has been suffering a setback from elevated expense level and exposure to catastrophe loss.Its return on equity stands at 2.4%, lower than its industry’s average of 5.6%, reflecting poor utilization of its shareholders’ funds.The company missed estimates in three of its trailing four quarters (while beating in one), the average negative surprise being 25.8%.What’s Bothering the Stock?RenaissanceRe has been suffering from rising costs for the past few years due to higher net claims and claim expenses, acquisition costs, operational expenses, etc. In 2019, the same soared 78% year over year, which remains a concern. In the first nine months of 2020, the same surged 36.8% from the prior-year’s same period.It is a well-known fact that the business of a property & casualty (P&C) insurer remains vulnerable to severe catastrophe loss, and RenaissanceRe is no exception to the trend. This, in turn, is not only likely to render volatility to the company’s underwriting profitability but also act as a drag on its earnings. In 2019, the company incurred $75 million of insured catastrophe losses. The massive loss events of third-quarter 2020 were due to hurricanes Lana and Sally in the Gulf of Mexico along with the wildfires of California, Oregon and Washington. The fourth quarter also witnessed the landfall of hurricane Delta and several wildfires. Climate change is also a reason for hurricane risks. It also results in higher net claims and claims expenses. In September-quarter earnings, the company's results took a hit from lower investment income, which bothers.The company's 2020 earnings per share estimate stands at $3.76, indicating a downside of a negative 58.8% year-over-year.Zacks Rank and Price PerformanceShares of this currently Zacks Rank #4 (Sell) company have lost 12.7% in a year’s time, wider than its industry’s decline of 2.2%.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Other companies in the same space, such as Arch Capital Group Ltd. ACGL, Principal Financial Group, Inc. PFG and Fidelity National Financial, Inc. FNF have also lost 16.6%, 7.5% and 15.7% in the same time frame.Just Released: Zacks’ 7 Best Stocks for TodayExperts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.These 7 were selected because of their superior potential for immediate breakout.See these time-sensitive tickers now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RenaissanceRe Holdings Ltd. (RNR): Free Stock Analysis Report Principal Financial Group, Inc. (PFG): Free Stock Analysis Report Fidelity National Financial, Inc. (FNF): Free Stock Analysis Report Arch Capital Group Ltd. (ACGL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research