U.S. Markets closed

Everest Re (RE) Q1 Earnings Beat Estimates, Revenues Miss

Zacks Equity Research

Everest Re Group, Ltd. RE delivered first-quarter 2019 operating net income per share of $6.91, beating the Zacks Consensus Estimate by 9.7%. The bottom line improved 29.4% year over year.

Both its reinsurance and insurance businesses witnessed growth in the quarter.

Operational Update

Everest Re’s total operating revenues of $1.9 billion increased 5.4% year over year. However, the top line missed the Zacks Consensus Estimate by 4.8%.

Gross written premiums improved 10% year over year to $2.1 billion. The company’s worldwide reinsurance premiums rose 7% to $1.5 billion on the back of increased casualty and property pro-rata premium, increased shares on existing business and profitable new growth. Direct insurance premiums grew 18%.

Net investment income came in at $141 million in the quarter under review, up 1.9% year over year.

Total claims and expenses increased 1.6% to $1.6 billion, attributable to higher commission, brokerage, taxes and fees, other underwriting expenses and interest, fees and bond issue cost amortization expense.

Combined ratio improved 460 basis points (bps) to 88.7%. Excluding catastrophe loss, attritional combined ratio was 87.4%, a deterioration of 30 bps from the prior-year period.

Everest Re Group, Ltd. Price, Consensus and EPS Surprise

Everest Re Group, Ltd. Price, Consensus and EPS Surprise | Everest Re Group, Ltd. Quote

Financial Update

Everest Re Group exited the quarter with total investments and cash of $19.2 billion, up 4.3% from 2018 end level. Shareholder equity at the end of the reported quarter increased 6.6% from 2018 end to $8.4 billion.

Book value per share came in at $206.68 as of Mar 31, 2019, up 6.3% from the 2018-end level.

Everest Re Group’s cash flow from operations was $459.8 million, up 135% year over year.

The company bought back shares worth $162 million in the quarter. The company still has 1.4 million shares remaining under its authorization.

Zacks Rank

Everest Re Group currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other P&C Insurers

Among other players from the same space that have reported first-quarter earnings so far, the bottom-line figures of The Travelers Companies Inc. TRV The Progressive Corp. PGR and RLI Corp. RLI beat the respective Zacks Consensus Estimate.

Radical New Technology Creates $12.3 Trillion Opportunity

Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.

Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.

See the 7 breakthrough stocks now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Progressive Corporation (PGR) : Free Stock Analysis Report
Everest Re Group, Ltd. (RE) : Free Stock Analysis Report
The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report
RLI Corp. (RLI) : Free Stock Analysis Report
To read this article on Zacks.com click here.