Analysts Reaffirm Everest Re Rating
Stock in Bermuda-headquartered Everest Re Group had its “neutral” rating reiterated by Zacks Investment Research in a research note.
Zacks’ analysts wrote, “We are reiterating our Neutral recommendation on the shares of Everest Re prior to the of fourth quarter earnings release scheduled on February 8, 2012.
“The company has suffered an operating loss for the first nine months, led by huge catastrophe losses as compared to earning an operating profit over the similar period last year. However, we are optimistic regarding management’s recent commentary pointing 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. The company is also aggressively expanding its overseas business accruing significantly to the overall top line in recent years. 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.”
Established in Bermuda in 1999, Everest Re Group, Ltd., through its subsidiaries, is principally engaged in the underwriting of reinsurance and insurance in the United States, Bermuda 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. It 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. The company’s products include property and casualty reinsurance, and insurance coverages, including marine, aviation, surety, errors and omissions liability, and directors’ and officers’ liability.
