Everest Re at 52-Week High on Q4 Earnings Outperformance

On Feb 6, shares of Everest Re Group Ltd. (RE) scaled an all-time new 52-week high of $184.61. The momentum in the stock was driven by better-than-expected fourth-quarter earnings.

Notably, this reinsurers’ shares rose 35.5% over the past one year, significantly higher that the S&P 500’s rise of 16.3% during the same time frame. The average volume of shares traded during the day was approximately 391K.

The company’s earnings of $7.28 per share beat the Zacks Consensus Estimate by 28.2%. Earnings also reflected a 15.9% rise from the prior-year quarter, primarily driven by higher premiums.

Everest Re’s total revenue of $1.52 billion during the quarter exceeded the Zacks Consensus Estimate of $1.43 billion by 6.1%. The top line was also marginally higher than the year-ago quarter. Top-line growth was driven by higher earned premiums and net investment income, but was partially offset by lower other net realized capital gains.

Strong results at Everest Re came from its reinsurance business, which benefitted from a benign catastrophe loss. The group’s gross written premium for the reported quarter was $1.4 billion, up 7% year over year with growth coming from all reinsurance segments.

Estimate Revision Shows Strength

Driven by optimism surrounding the stock, over the last 7 days, the Zacks Consensus Estimate for 2015 earnings per share climbed 0.8% to $19.00.

Everest Re carries a Zacks Rank #3 (Hold).

Other Stocks to Consider

Better-ranked players in the industry include Allied World Assurance Company Holdings, AG (AWH), Arch Capital Group Ltd. (ACGL) and Endurance Specialty Holdings Ltd. (ENH). All these stocks carry a Zacks Rank #1 (Strong Buy).