HOME ZACKS RESEARCH FUNDS PORTFOLIO BROKER RESEARCH MARKETS SCREENING EDUCATION SERVICES
Zacks Rank    Equity Research    Premium Home    My Account    Help    

Zacks #1 Rank
See how a purely mathematical analysis of earnings estimate revisions returns over 27% per year on average. Click Here to Learn More.
Quote:
Login Free Membership
Search:

 
Analyst Blog  

Everest Re: The Irish Connection

July 01, 2009 | Comments: 0
Recommended this article (1)
RE | MRH | ACE | XL | PRE
Print    Share

On June 29, Everest Re Group (RE - Analyst Report) announced that Everest Reinsurance Company (Ireland) Limited, its newly established direct subsidiary, has received a license from the Irish Financial Services Regulatory Authority to operate as an authorized non-life reinsurer in Ireland.

As a result, Everest Re will be able to operate throughout the European Union under a single regulatory framework. The company focuses on providing property, casualty and motor classes of business on direct and broker basis. In May 2009, A.M. Best Co. assigned a financial strength rating of A+ (Superior) and an issuer credit rating of aa- to Everest Reinsurance (Ireland) Ltd, with a stable outlook for both ratings.

Everest Re has been generating business in Europe for decades through its representative offices in London and Brussels. This new arrangement supports its existing operations in London and Brussels along with its new operation in Cologne.

Everest Re is focused on diversifying its business geographically. We note that rate decreases in the international markets have generally been less pronounced than in the U.S. markets. Overall, rates for the overseas business were up 5% to 10% during the first quarter of 2009. Going forward, we expect a hardening within the insurance and reinsurance rates, terms and conditions, though the current economic slowdown will restrict significant top-line growth of the company.

We think that Everest’s strong capital position, diversification of product lines, geography and distribution and robust financial strength ratings give the company an edge over its peers (Montpelier Re Holdings Ltd. [MRH - Analyst Report], ACE Limited [ACE - Analyst Report], XL Capital Ltd. [XL - Analyst Report] and PartnerRe Ltd. [PRE - Analyst Report]). Hence, we continue with our Hold recommendation on the shares of Everest Re.


Email

Print

Share

RSS

Rate Pos

Rate Neg

Comment
Read/Post Comments (0) | Recommended this article (1)
 Posting Comment...
There was a problem posting this this comment. Please try back later.
[CLICK TO CLOSE X]
Comments (Limit 1000 Characters - Used: 0)
Display Name: Email Address:  
 Loading Comments...
Be the first to comment on this article!
Best Stocks. Best Insight. Join Now...it's FREE!
Over 550,000 investors look forward to the timely insights in our email newsletter; Zacks Profit from the Pros. In each daily issue you will find:
  • Free  Four Zacks #1 Rank "Strong Buy" Stocks
  • Free  Timely Market Commentary
  • Free  Wealth Management Tips
  • Free  Profitable Strategy Screens
  • Free  Bull and Bear Stocks of the Day
Zacks FREE Registration

More Zacks Resources

Market Summary Nov 26, 2009 06:57 am ET
DJIA 10464.4  30.69 0.29%
NASD 2176.05  6.87 0.32%
S&P 500 1110.63  4.98 0.45%
Sponsored Links