We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Should You Hold Everest Re (RE) Stock Right Now?
Read MoreHide Full Article
Everest Re Group, Ltd. has successfully met the ever-changing demands and expectations of its clients, building a solid product and service portfolio over the years. The company remains on track to retain the momentum for a better performance in future.
Everest Re’s Insurance segment has been witnessing an improvement in gross premiums written, driven by initiatives like product diversification and expansion of the property insurance geographic footprint. Notably, the second quarter of 2017 saw the highest level of quarterly gross written premium realized. We expect such strategic initiatives to drive the premiums even higher.
Further, Mt. Logan Re – one of the key growth drivers of the property and casualty (P&C) insurer – has displayed a significant progress in Asset Under Management (AUM) and remains the fastest growing capital market vehicle.
An increase in AUM will help Everest Re execute and enhance its long-term capital management and business scheme. In addition, introduction of several reinsurance products like the Purple Everest Color Product is expected to benefit this Zacks Rank #3 (Hold) property and casualty (P&C) insurer to a large extent in future.
The company is also well-poised to benefit from capital adequacy, financial flexibility, long-term operating performance and traditional risk management capabilities. Besides, Everest Re’s prudent capital management plan and robust capital balance position should help it further continue dividend payouts and share buybacks.
Shares of Everest Re have rallied 22.49% year to date, significantly outperforming the industry’s increase of 7.86%. We expect both bottom-line and top-line growth, along with improving premiums and robust capital position, to drive the stock higher in the near term as well.
However, exposure to catastrophe losses seems a headwind and might shortly affect the company’s earnings. Also, the P&C insurer has been witnessing expenses on the rise for the past few years and the situation does not appear to subside soon.
Nonetheless, valuation is attractive at present as the stock is currently trading at a price to book multiple of 1.27 over a period of one year, a 14.8% discount to the industry average of 1.49.
Besides, the company has a trailing 12-month return on equity (ROE) of 13.6%, higher than the industry’s 6.5% average. Plus, the insurer’s expected long-term earnings growth is pegged at 10.00%.
American Financial provides property and casualty insurance products in the United States. The company delivered positive surprises in three of the last four quarters with an average beat of 17.03%.
CNO Financial develops, markets and administers health insurance, annuity, individual life insurance and other insurance products for senior and middle-income markets in the United States. The company delivered positive surprises in three of the last four quarters with an average beat of 6.69%.
Argo Group underwrites specialty insurance and reinsurance products in the property and casualty market worldwide. The company delivered positive surprises in all of the last four quarters with an average beat of 26.51%.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Should You Hold Everest Re (RE) Stock Right Now?
Everest Re Group, Ltd. has successfully met the ever-changing demands and expectations of its clients, building a solid product and service portfolio over the years. The company remains on track to retain the momentum for a better performance in future.
Everest Re’s Insurance segment has been witnessing an improvement in gross premiums written, driven by initiatives like product diversification and expansion of the property insurance geographic footprint. Notably, the second quarter of 2017 saw the highest level of quarterly gross written premium realized. We expect such strategic initiatives to drive the premiums even higher.
Further, Mt. Logan Re – one of the key growth drivers of the property and casualty (P&C) insurer – has displayed a significant progress in Asset Under Management (AUM) and remains the fastest growing capital market vehicle.
An increase in AUM will help Everest Re execute and enhance its long-term capital management and business scheme. In addition, introduction of several reinsurance products like the Purple Everest Color Product is expected to benefit this Zacks Rank #3 (Hold) property and casualty (P&C) insurer to a large extent in future.
The company is also well-poised to benefit from capital adequacy, financial flexibility, long-term operating performance and traditional risk management capabilities. Besides, Everest Re’s prudent capital management plan and robust capital balance position should help it further continue dividend payouts and share buybacks.
Shares of Everest Re have rallied 22.49% year to date, significantly outperforming the industry’s increase of 7.86%. We expect both bottom-line and top-line growth, along with improving premiums and robust capital position, to drive the stock higher in the near term as well.
However, exposure to catastrophe losses seems a headwind and might shortly affect the company’s earnings. Also, the P&C insurer has been witnessing expenses on the rise for the past few years and the situation does not appear to subside soon.
Nonetheless, valuation is attractive at present as the stock is currently trading at a price to book multiple of 1.27 over a period of one year, a 14.8% discount to the industry average of 1.49.
Besides, the company has a trailing 12-month return on equity (ROE) of 13.6%, higher than the industry’s 6.5% average. Plus, the insurer’s expected long-term earnings growth is pegged at 10.00%.
Stocks to Consider
Some better-ranked stocks from the insurance industry are American Financial Group, Inc. (AFG - Free Report) , CNO Financial Group, Inc. (CNO - Free Report) and Argo Group International Holdings, Ltd. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American Financial provides property and casualty insurance products in the United States. The company delivered positive surprises in three of the last four quarters with an average beat of 17.03%.
CNO Financial develops, markets and administers health insurance, annuity, individual life insurance and other insurance products for senior and middle-income markets in the United States. The company delivered positive surprises in three of the last four quarters with an average beat of 6.69%.
Argo Group underwrites specialty insurance and reinsurance products in the property and casualty market worldwide. The company delivered positive surprises in all of the last four quarters with an average beat of 26.51%.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>