J.P. Morgan Maintains Neutral on Everest Re Group (RE)

J.P. Morgan is out with its report today on Everest Re Group

, maintaining Neutral. In a note to clients, J.P. Morgan writes, "Everest Re reported 4Q EPS of $4.70 versus our estimates of $2.70 and consensus of $3.10. While reported results topped estimates, the upside was entirely due to a combination of a tax benefit, alternative income, derivative marks, and valuation movements. Underlying margins were lower than expected, while the company reported a small amount of adverse development in the quarter (significant adverse in US Insurance and Reinsurance more than offset significant favorable development in International and Bermuda). While the increased attritional loss ratio could be a long-term positive in addressing continued adverse reserve development, the ratio is trending higher and faster than we anticipated in the quarter." At the time of posting, shares of RE were trading at $84.69, down 1.20% from Wednesday's close.