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Despite Catastrophe Losses, Everest Q2 Results Come In Above Consensus Estimates

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Despite Catastrophe Losses, Everest Q2 Results Come In Above Consensus Estimates

Barclays maintains its Overweight rating and $215 price target on Everest Re Group Ltd (NYSE: RE) after the reinsurer reported better-than-expected second-quarter results despite catastrophe losses.

Everest Re's second-quarter operating EPS of $3.17 (-37 percent year-over-year) topped Barclays' estimate of $3.00 and came in above consensus estimate of $2.85, despite elevated catastrophe losses that were offset by favorable underlying underwriting results.

Related Link: Everest Re Announces Alliance with CGB Diversified Services And Sale Of Crop Insurance Company, Heartland

Total gross written premiums increased 8 percent to $1.4 billion, above Barclays' estimate of a 1.5 percent decline. The combined ratio was 95.1 percent (86.1 percent excluding catastrophes and prior year reserve development), better than Barclays' estimate of 96.4 percent (88.2 percent underlying).

Analyst Jay Gelb raised 2016 EPS estimates to $17.90 from $17.70 to take into account the second quarter results. The analyst, however, maintains his 2017 EPS estimate of $19.00.

At time of writing, Everest Re shares had gained 2.17 percent on the day to $185.38. Gelb said RE shares are currently attractively valued at 0.95x book value.

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Latest Ratings for RE

DateFirmActionFromTo
Nov 2019MaintainsOverweight
Aug 2019MaintainsEqual-Weight
Jul 2019MaintainsEqual-Weight

View More Analyst Ratings for RE
View the Latest Analyst Ratings

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