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Everest Re (RE) Q3 Earnings and Revenues Beat Estimates
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Everest Re Group, Ltd. delivered third-quarter 2018 operating earnings of $4.09 per share, surpassing the Zacks Consensus Estimate of $3.07 by 33.2%. Moreover, the bottom line reversed the year-ago quarter’s loss of $15.35 per share.
Everest Re Group, Ltd. Price, Consensus and EPS Surprise
The reported quarter witnessed an increase in premiums and net investment income. The company saw solid underlying results with a continued positive momentum across its underwriting operations.
Including after-tax net realized capital gains of $1.06 and a foreign exchange expense of 13 cents, net income came in at $5.02 per share versus the year-ago quarterly loss of $15.73.
Operational Update
Everest Re Group’s total operating revenues of $1.9 billion increased nearly 12.3% year over year. Also, the top line beat the Zacks Consensus Estimate by 4.7%.
Gross written premiums rose 8% year over year to $2.2 billion. The company’s worldwide reinsurance premiums increased 7% while direct insurance premiums improved 8% for the third quarter.
Net investment income came in at $161.4 million in the quarter under review, up 17.8% year over year.
Total claims and expenses declined nearly 33.6% to $1.7 billion, attributable to lower incurred loss and loss adjustment expenses.
Combined ratio improved 6360 basis points (bps) to 100% from 163.6% in the year-earlier quarter. Excluding catastrophe loss, attritional combined ratio was 86.8% with a deterioration of 130 bps from the prior-year period.
Financial Update
Everest Re Group exited the quarter with total assets of $24.4 billion, up 3.5% from $23.6 billion at the end of 2017. Shareholder equity at the end of the reported quarter slid 0.5% to $8.3 billion from the level of $8.4 billion at 2017 end.
Total cash balance at the end of the quarter under review inched up 0.7% to $639.8 million from the end of 2017.
Book value per share came in at $204.91 as of Sep 30, 2018, flat with the 2017-end level.
Return on equity was 10%.
Everest Re Group’s cash flow from operations for the nine months having ended Sep 30, 2018, was $543.6 million, slumping nearly 47.9% year over year.
Among other players from the insurance industry, which have already reported third-quarter earnings, the bottom line of The Progressive Corporation (PGR - Free Report) and The Travelers Companies, Inc.’s (TRV - Free Report) outpaced the respective Zacks Consensus Estimate while RLI Corp.’s (RLI - Free Report) earnings missed the same.
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Everest Re (RE) Q3 Earnings and Revenues Beat Estimates
Everest Re Group, Ltd. delivered third-quarter 2018 operating earnings of $4.09 per share, surpassing the Zacks Consensus Estimate of $3.07 by 33.2%. Moreover, the bottom line reversed the year-ago quarter’s loss of $15.35 per share.
Everest Re Group, Ltd. Price, Consensus and EPS Surprise
Everest Re Group, Ltd. Price, Consensus and EPS Surprise | Everest Re Group, Ltd. Quote
The reported quarter witnessed an increase in premiums and net investment income. The company saw solid underlying results with a continued positive momentum across its underwriting operations.
Including after-tax net realized capital gains of $1.06 and a foreign exchange expense of 13 cents, net income came in at $5.02 per share versus the year-ago quarterly loss of $15.73.
Operational Update
Everest Re Group’s total operating revenues of $1.9 billion increased nearly 12.3% year over year. Also, the top line beat the Zacks Consensus Estimate by 4.7%.
Gross written premiums rose 8% year over year to $2.2 billion. The company’s worldwide reinsurance premiums increased 7% while direct insurance premiums improved 8% for the third quarter.
Net investment income came in at $161.4 million in the quarter under review, up 17.8% year over year.
Total claims and expenses declined nearly 33.6% to $1.7 billion, attributable to lower incurred loss and loss adjustment expenses.
Combined ratio improved 6360 basis points (bps) to 100% from 163.6% in the year-earlier quarter. Excluding catastrophe loss, attritional combined ratio was 86.8% with a deterioration of 130 bps from the prior-year period.
Financial Update
Everest Re Group exited the quarter with total assets of $24.4 billion, up 3.5% from $23.6 billion at the end of 2017. Shareholder equity at the end of the reported quarter slid 0.5% to $8.3 billion from the level of $8.4 billion at 2017 end.
Total cash balance at the end of the quarter under review inched up 0.7% to $639.8 million from the end of 2017.
Book value per share came in at $204.91 as of Sep 30, 2018, flat with the 2017-end level.
Return on equity was 10%.
Everest Re Group’s cash flow from operations for the nine months having ended Sep 30, 2018, was $543.6 million, slumping nearly 47.9% year over year.
Zacks Rank
Everest Re Group 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 insurance industry, which have already reported third-quarter earnings, the bottom line of The Progressive Corporation (PGR - Free Report) and The Travelers Companies, Inc.’s (TRV - Free Report) outpaced the respective Zacks Consensus Estimate while RLI Corp.’s (RLI - Free Report) earnings missed the same.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>