Everest Re Well Poised in Insurance/Reinsurance Markets

On Dec 5, we issued an updated report on Everest Re Group Ltd. (RE). The company is a worldwide multi-line reinsurance and insurance organization, with strong brand recognition, top ratings from A. M. Best, Moody’s and the S&P.

Everest Re boasts an experienced management team with a winning culture focused on profitable growth and agility in decision making.

Everest Re has a diversified book of business comprising reinsurance/insurance, property/casualty, U.S. and non-U.S.

The company’s reinsurance segment is well diversified geographically, with businesses in U.S.A, Canada, Asia, Australia, Latin America, Middle East, Africa, Europe and U.K.

Everest Re also has a strong risk management culture characterized by considerable financial flexibility and a conservative property catastrophe exposure. The company’s established enterprise risk-management framework effectively identifies, measures and monitors both existing and emerging risks across its respective businesses and enables the efficient allocation of capital.

However, exposure to catastrophes loss, reinsurance rates remaining under pressure and a low interest rates are some of the headwinds faced by the company.

During the most recently concluded quarter, Everest Re gave an exemplary performance. The company’s operating income of $6.12 per share easily surpassed the Zacks Consensus Estimate of $4.97 and improved 45.7% year over year. The company’s strong third-quarter financial performance was a continuation of superior results and attractive revenue and earnings growth.

Everest Re carries a Zacks Rank # 3 (Hold). Better-ranked players include AmTrust Financial Services, Inc. (AFSI), Arch Capital Group Ltd. (ACGL) and Selective Insurance Group Inc. (SIGI). All these stocks sport a Zacks Rank # 1 (Strong Buy).