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Everest Re (RE) Q3 Earnings Top Estimates, Revenues Up Y/Y
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Everest Re Group, Ltd. delivered third-quarter 2019 operating net income per share of $3.39, beating the Zacks Consensus Estimate by 63.8%. The bottom line declined 17.2% year over year.
Both its reinsurance and insurance businesses witnessed growth in the quarter.
Operational Update
Everest Re’s total operating revenues of $2.1 billion increased 9% year over year. However, the top line missed the Zacks Consensus Estimate by 0.8%.
Gross written premiums improved 9% year over year to $2.4 billion. The company’s worldwide reinsurance premiums increased 3% year over year to $1.7 billion. Direct insurance premiums grew 29% to $666.6 million.
Net investment income came in at $181.1 million in the quarter under review, up 12% year over year.
Total claims and expenses increased 11.6% to $1.9 billion, attributable to higher incurred losses and loss adjustment expenses, commission, brokerage, taxes and fees, other underwriting expenses and corporate expenses.
Combined ratio deteriorated 140 basis points to 101.4%.
Everest Re Group, Ltd. Price, Consensus and EPS Surprise
Everest Re Group exited the quarter with total investments and cash of $20.4 billion, up 10.5% from 2018 level. Shareholder equity at the end of the reported quarter increased 14.3% from 2018 end to nearly $9 billion.
Book value per share came in at $193.37 as of Sep 30, 2019, down 12.2% from 2018-end level.
Annualized net income return on equity was 13% in the first nine months of 2019.
Everest Re Group’s cash flow from operations was $1.5 billion in the first nine months of 2019, up more than threefold year over year.
The company bought back shares worth $24.6 million in the first nine months of 2019. The company still has 1.3 million shares remaining under its authorization.
Zacks Rank
Everest Re Group currently carries a Zacks Rank #4 (Sell).
Of the insurance industry players that have reported third-quarter results so far, The Progressive Corporation (PGR - Free Report) and RLI Corp. (RLI - Free Report) beat the respective Zacks Consensus Estimate for earnings. However, The Travelers Companies (TRV - Free Report) missed the same.
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Everest Re (RE) Q3 Earnings Top Estimates, Revenues Up Y/Y
Everest Re Group, Ltd. delivered third-quarter 2019 operating net income per share of $3.39, beating the Zacks Consensus Estimate by 63.8%. The bottom line declined 17.2% year over year.
Both its reinsurance and insurance businesses witnessed growth in the quarter.
Operational Update
Everest Re’s total operating revenues of $2.1 billion increased 9% year over year. However, the top line missed the Zacks Consensus Estimate by 0.8%.
Gross written premiums improved 9% year over year to $2.4 billion. The company’s worldwide reinsurance premiums increased 3% year over year to $1.7 billion. Direct insurance premiums grew 29% to $666.6 million.
Net investment income came in at $181.1 million in the quarter under review, up 12% year over year.
Total claims and expenses increased 11.6% to $1.9 billion, attributable to higher incurred losses and loss adjustment expenses, commission, brokerage, taxes and fees, other underwriting expenses and corporate expenses.
Combined ratio deteriorated 140 basis points to 101.4%.
Everest Re Group, Ltd. Price, Consensus and EPS Surprise
Everest Re Group, Ltd. price-consensus-eps-surprise-chart | Everest Re Group, Ltd. Quote
Financial Update
Everest Re Group exited the quarter with total investments and cash of $20.4 billion, up 10.5% from 2018 level. Shareholder equity at the end of the reported quarter increased 14.3% from 2018 end to nearly $9 billion.
Book value per share came in at $193.37 as of Sep 30, 2019, down 12.2% from 2018-end level.
Annualized net income return on equity was 13% in the first nine months of 2019.
Everest Re Group’s cash flow from operations was $1.5 billion in the first nine months of 2019, up more than threefold year over year.
The company bought back shares worth $24.6 million in the first nine months of 2019. The company still has 1.3 million shares remaining under its authorization.
Zacks Rank
Everest Re Group currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other P&C Insurers
Of the insurance industry players that have reported third-quarter results so far, The Progressive Corporation (PGR - Free Report) and RLI Corp. (RLI - Free Report) beat the respective Zacks Consensus Estimate for earnings. However, The Travelers Companies (TRV - Free Report) missed the same.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
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