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Everest Re Group's (RE) Prospects Look Bright: Time to Buy?
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Shares of Everest Re Group, Ltd. gained 7.56% year to date, outperforming the Zacks categorized Property and Casualty industry’s increase of 6.16%. We expect the stock to retain its momentum on the back of a number of positives.
Everest Re Group’s Insurance segment has been witnessing an improvement in gross written premiums over the past few years. The premium growth was driven by initiatives like product diversification and expansion of the property insurance geographic footprint, to name a few. The company is expected to continue benefiting from such developments in the future.
Moreover, Mt. Logan Re – one of the key growth drivers of this Zacks Rank #2 (Buy) property and casualty (P&C) insurer – has displayed significant improvement in its Asset Under Management (AUM) and remains the fastest growing capital market vehicle. Increase in AUM will help the company execute and enhance its long-term capital management and business strategy.
In addition, the company has been benefiting from its capital adequacy, financial flexibility, long-term operating performance and traditional risk management capabilities. Given its prudent capital management strategy and robust capital balance position, Everest Re Group is anticipated to make consistent dividend payouts and share buybacks.
Currently, Everest Re Group seems to be undervalued as the stock is trading at 1.18x price to book multiple over a period of one year. This compares favorably with the P&C industry’s multiple of 1.38x. Also, Everest Re Group has a trailing 12-month return on equity (ROE) of 12.4%, which is higher than the industry average of 6.6%. Furthermore, the company’s expected long-term earnings growth is pegged at 10%, which is slightly better than the industry average of 9.50%.
Other Stocks to Consider
Investors interested in other stocks from the same space can consider American Financial Group, Inc. (AFG - Free Report) , Argo Group International Holdings, Ltd. and Selective Insurance Group, Inc. (SIGI - Free Report) .
American Financial offers P&C insurance products in the United States. The company delivered positive surprises in three of the last four quarters with an average beat of 6.45%. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Argo Group International Holdings underwrites specialty insurance and reinsurance products in the P&C market worldwide. The company delivered positive surprises in all of the last four quarters with an average beat of 36.54%. The company holds a Zacks Rank #2 (Buy).
Selective Insurance provides insurance products and services in the United States. The company delivered a positive surprise in one of the last four quarters but with an average negative surprise of 4.53%. The company holds a Zacks Rank #2.
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Everest Re Group's (RE) Prospects Look Bright: Time to Buy?
Shares of Everest Re Group, Ltd. gained 7.56% year to date, outperforming the Zacks categorized Property and Casualty industry’s increase of 6.16%. We expect the stock to retain its momentum on the back of a number of positives.
Everest Re Group’s Insurance segment has been witnessing an improvement in gross written premiums over the past few years. The premium growth was driven by initiatives like product diversification and expansion of the property insurance geographic footprint, to name a few. The company is expected to continue benefiting from such developments in the future.
Moreover, Mt. Logan Re – one of the key growth drivers of this Zacks Rank #2 (Buy) property and casualty (P&C) insurer – has displayed significant improvement in its Asset Under Management (AUM) and remains the fastest growing capital market vehicle. Increase in AUM will help the company execute and enhance its long-term capital management and business strategy.
In addition, the company has been benefiting from its capital adequacy, financial flexibility, long-term operating performance and traditional risk management capabilities. Given its prudent capital management strategy and robust capital balance position, Everest Re Group is anticipated to make consistent dividend payouts and share buybacks.
Currently, Everest Re Group seems to be undervalued as the stock is trading at 1.18x price to book multiple over a period of one year. This compares favorably with the P&C industry’s multiple of 1.38x. Also, Everest Re Group has a trailing 12-month return on equity (ROE) of 12.4%, which is higher than the industry average of 6.6%. Furthermore, the company’s expected long-term earnings growth is pegged at 10%, which is slightly better than the industry average of 9.50%.
Other Stocks to Consider
Investors interested in other stocks from the same space can consider American Financial Group, Inc. (AFG - Free Report) , Argo Group International Holdings, Ltd. and Selective Insurance Group, Inc. (SIGI - Free Report) .
American Financial offers P&C insurance products in the United States. The company delivered positive surprises in three of the last four quarters with an average beat of 6.45%. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Argo Group International Holdings underwrites specialty insurance and reinsurance products in the P&C market worldwide. The company delivered positive surprises in all of the last four quarters with an average beat of 36.54%. The company holds a Zacks Rank #2 (Buy).
Selective Insurance provides insurance products and services in the United States. The company delivered a positive surprise in one of the last four quarters but with an average negative surprise of 4.53%. The company holds a Zacks Rank #2.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs. A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>