Zacks Reaffirms Everest’s Neutral Rating
Bermuda’s Everest Re Groups stock had its “neutral” rating reaffirmed by equities research analysts at Zacks Investment Research in a research note issued to investors on Monday [Oct. 31]. The analysts currently have a $95.00 price target on the stock.
Zacks’ analyst wrote, “Everest Re’s third quarter 2011 earnings came substantially ahead of the Zacks Consensus Estimates, led by stronger core underwriting results, better und0erlying margins and slightly higher earned premiums, positive alternative investment income, lower derivative and other expenses, higher recurring net investment income and a lower share count, partly offset by high catastrophe losses.
“The company’s third quarter conference commentary pointed towards favorable reinsurance market pricing led by the recent cat loss events.
“Any such development augurs well for the company, which is a big player in the reinsurance market. Moreover, given its conservative financial leverage measures, the company maintains strong financial flexibility with the ability to effectively manage its capital through market cycles. However, lower reinvestment rates and reserving performances are near-term headwinds to its earnings.”
Everest Re Group, Ltd., through its subsidiaries, is principally engaged in the underwriting of reinsurance and insurance in the Bermuda, United States and international markets. The company underwrites reinsurance both through brokers and directly with ceding companies.
It underwrites insurance principally through general agent relationships, brokers and surplus lines brokers.
Everest Re operates in five segments: US Reinsurance, US Insurance, Specialty Underwriting, International and Bermuda.
The company offers treaty and facultative reinsurance, and admitted and non-admitted insurance. Its products include property and casualty reinsurance, and insurance coverages, including marine, aviation, surety, errors and omissions liability, and directors’ and officers’ liability.
