“We do not expect much movement in the shares to the beat given the strong performance of the stock this year. Significant premium growth in insurance and reinsurance. Gross premiums rose 17.5%, higher than our 4.2% estimate, but lower than 18.3% in Q1 (14% ex a $60 million true-up). Reinsurance was +13.7%, higher than our 9.1% estimate, but lower than 19.4% in Q1 (or 13% ex the true-up) driven by crop shifting to the reinsurance side, gaining share on property pro-rata covers, and financial lines. In reinsurance, Everest saw strong growth in the U.S. and Bermuda, while International declined. The level of reinsurance growth continues to stand out given the price declines. Insurance was +40.6% ex crop, well in excess of our 22.0% growth estimate, and +21% in Q1, as RE continues to build out its newer initiatives. Combined ratio saw higher cats than we had modeled and a weaker underlying margin. The combined ratio was 90.5%, higher than our 87.5% estimate due to a higher cat load and weaker underlying margin. Cat losses came in at $53.5 million, higher than our $30.0 million estimate. RE saw virtually no net prior year reserve development (as a modest level of releases in reinsurance was offset by strengthening in insurance). We had modeled $2.0 million of favorable reserve development.”,” the firm’s analyst commented.
A number of other brokerages also recently weighed in on RE. Barclays PLC boosted their price target on Everest Re Group from $269.00 to $299.00 and gave the company an equal weight rating in a report on Tuesday, April 25th. Zacks Investment Research downgraded Everest Re Group from a buy rating to a hold rating in a report on Tuesday, April 11th. Morgan Stanley reiterated an equal weight rating and issued a $259.00 price target (up from $250.00) on shares of Everest Re Group in a report on Thursday, July 6th. Deutsche Bank AG reiterated a buy rating and issued a $262.00 price target (up from $240.00) on shares of Everest Re Group in a report on Saturday, April 29th. Finally, BidaskClub upgraded Everest Re Group from a hold rating to a buy rating in a report on Wednesday, July 5th. Two research analysts have rated the stock with a sell rating, six have assigned a hold rating, two have given a buy rating and one has issued a strong buy rating to the stock. The company has a consensus rating of Hold and a consensus target price of $250.25.
Shares of Everest Re Group (RE) opened at 263.02 on Monday. The firm has a market capitalization of $10.80 billion, a P/E ratio of 9.02 and a beta of 0.63. Everest Re Group has a 12-month low of $183.04 and a 12-month high of $277.17. The stock has a 50 day moving average price of $264.82 and a 200 day moving average price of $246.85.
Everest Re Group (NYSE:RE) last issued its quarterly earnings results on Monday, July 24th. The insurance provider reported $5.51 earnings per share for the quarter, beating the Zacks’ consensus estimate of $5.24 by $0.27. Everest Re Group had a return on equity of 13.60% and a net margin of 19.65%. The business had revenue of $1.50 billion during the quarter, compared to the consensus estimate of $1.46 billion. During the same period in the previous year, the business earned $3.17 EPS. Equities analysts anticipate that Everest Re Group will post $21.48 earnings per share for the current fiscal year.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. RMB Capital Management LLC bought a new position in Everest Re Group during the fourth quarter worth about $1,434,000. UBS Asset Management Americas Inc. raised its position in Everest Re Group by 3.1% in the fourth quarter. UBS Asset Management Americas Inc. now owns 349,694 shares of the insurance provider’s stock worth $75,674,000 after buying an additional 10,627 shares in the last quarter. Raymond James Trust N.A. raised its position in Everest Re Group by 1.7% in the first quarter. Raymond James Trust N.A. now owns 17,972 shares of the insurance provider’s stock worth $4,202,000 after buying an additional 294 shares in the last quarter. Bank of Montreal Can raised its position in shares of Everest Re Group by 3.4% in the first quarter. Bank of Montreal Can now owns 234,699 shares of the insurance provider’s stock worth $54,876,000 after buying an additional 7,775 shares during the period. Finally, Regentatlantic Capital LLC raised its position in shares of Everest Re Group by 1.5% in the first quarter. Regentatlantic Capital LLC now owns 10,783 shares of the insurance provider’s stock worth $2,521,000 after buying an additional 160 shares during the period. Institutional investors and hedge funds own 91.63% of the company’s stock.
About Everest Re Group
Everest Re Group, Ltd., through its subsidiaries, is engaged in the underwriting of reinsurance and insurance in the United States, Bermuda and international markets. The Company operates in segments: U.S. Reinsurance, International, Bermuda and Insurance segment. The Company underwrites reinsurance both through brokers and directly with ceding companies.
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