Everest Re Group, Ltd. delivered second-quarter 2019 operating net income per share of $7.85, beating the Zacks Consensus Estimate by 17.9%. The bottom line improved more than eightfold year over year.
Both its reinsurance and insurance businesses witnessed growth in the quarter.
Operational Update
Everest Re’s total operating revenues of nearly $2 billion increased 6.1% year over year. However, the top line missed the Zacks Consensus Estimate by 4.8%.
Gross written premiums improved 5% year over year to $2.2 billion. The company’s worldwide reinsurance premiums remained flat year over year at $1.4 billion. Direct insurance premiums grew 17% to $757.1 million.
Net investment income came in at $179 million in the quarter under review, up 27% year over year.
Total claims and expenses decreased 10.6% to $1.6 billion, attributable to lower losses and loss adjustment expenses.
Combined ratio improved 1590 basis points (bps) to 89.2%. Excluding catastrophe loss, attritional combined ratio was 88.6%, a deterioration of 510 bps from the prior-year period.
Everest Re Group, Ltd. Price, Consensus and EPS Surprise
Financial Update
Everest Re Group exited the quarter with total investments and cash of $19.8 billion, up 7.4% from 2018 level. Shareholder equity at the end of the reported quarter increased 6.6% from 2018 end to $8.9 billion.
Book value per share came in at $218.07 as of Jun 30, 2019, up 12.2% from 2018-end level.
Annualized net income return on equity was 16.1%.
Everest Re Group’s cash flow from operations was $853.5 million in the first half of 2019, up more than sixfold year over year.
The company bought back shares worth $8.5 million in the quarter. The company still has 1.3 million shares remaining under its authorization.
Zacks Rank
Everest Re Group currently carries a Zacks Rank #2 (Buy). 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 second-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 Group, Ltd. delivered second-quarter 2019 operating net income per share of $7.85, beating the Zacks Consensus Estimate by 17.9%. The bottom line improved more than eightfold year over year.
Both its reinsurance and insurance businesses witnessed growth in the quarter.
Operational Update
Everest Re’s total operating revenues of nearly $2 billion increased 6.1% year over year. However, the top line missed the Zacks Consensus Estimate by 4.8%.
Gross written premiums improved 5% year over year to $2.2 billion. The company’s worldwide reinsurance premiums remained flat year over year at $1.4 billion. Direct insurance premiums grew 17% to $757.1 million.
Net investment income came in at $179 million in the quarter under review, up 27% year over year.
Total claims and expenses decreased 10.6% to $1.6 billion, attributable to lower losses and loss adjustment expenses.
Combined ratio improved 1590 basis points (bps) to 89.2%. Excluding catastrophe loss, attritional combined ratio was 88.6%, a deterioration of 510 bps from the prior-year period.
Everest Re Group, Ltd. Price, Consensus and EPS Surprise
Financial Update
Everest Re Group exited the quarter with total investments and cash of $19.8 billion, up 7.4% from 2018 level. Shareholder equity at the end of the reported quarter increased 6.6% from 2018 end to $8.9 billion.
Book value per share came in at $218.07 as of Jun 30, 2019, up 12.2% from 2018-end level.
Annualized net income return on equity was 16.1%.
Everest Re Group’s cash flow from operations was $853.5 million in the first half of 2019, up more than sixfold year over year.
The company bought back shares worth $8.5 million in the quarter. The company still has 1.3 million shares remaining under its authorization.
Zacks Rank
Everest Re Group currently carries a Zacks Rank #2 (Buy). 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 second-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.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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