Everest Re Earnings Beats Estimates

Zacks

Everest Re Group Ltd. (RE) reported first quarter 2013 operating earnings of $5.88 per share, substantially beating the Zacks Consensus Estimate of $4.32 per share. Earnings were also up 31.3% year over year. 
 
Including after tax net realized capital gains and loss, the company reported net income of $7.50 per share against $5.68 per share reported in the year-ago quarter.
 
Operational Update
 
Total revenue for the quarter came in at $1.37 billion, up 9.5% year over year. 
 
Premiums earned were up 9.1% year over year to $1.09 billion, led by higher premium in both its operating segments. 
 
Net investment income decreased 4.4% over the prior-year quarter to $145.8 million.
 
Total claims and expenses were down 1% year over year to $897 million, primarily due to lower incurred losses and loss adjustment expenses.
 
The combined ratio was 80.7% compared with 89.0% in the year-ago period. 
 
Segment Results
 
The company’s Reinsurance segment reported net premium written of $924.4 million, up 11.0% year over year. The segment reported underwriting loss of $209.9 million up 88% year over year. Combined ratio was 76.4%, compared with 86.4% in the year-ago quarter.
 
The Insurance segment reported premium written of $225.2 million, up 23.7% year over year. The segment reported an underwriting profit of $193.0 million, compared with an underwriting loss of $2.1 million in the year-ago quarter.
 
Financial update
 
Shareholders’ equity as of the end of the reported quarter was $6.8 billion, up 1.2% from the $6.7 billion at Dec 31, 2012. 
 
Book value per share increased to $136.43 as on Mar 31, 2013 from to $120.30 as of Mar 31, 2012. 
 
Share Repurchase Update
 
During the quarter under review, Everest Re spent $238.6 million on share repurchase.
 
Everest Re currently retains a Zacks Rank #2 (Buy).  Other companies in the same industry The Travelers Companies Inc. (TRV), ACE Limited (ACEalso reported first quarter 2013 earnings ahead of the Zacks Consensus Estimate. However, RLI Corporation (RLI) reported first-quarter below the Zacks Consensus Estimate.
Read the Full Research Report on RE

Read the Full Research Report on RLI

Read the Full Research Report on TRV

Read the Full Research Report on ACE

Zacks Investment Research



More From Zacks.com
View Comments (0)