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Everest Re Group (RE) to Report Q2 Earnings: What's in Store?

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Everest Re Group (RE - Free Report) is slated to report second-quarter 2021 results on Jul 28, after market close. The company delivered an earnings surprise of 41.39% in the last reported quarter.

Factors to Consider

Everest Re’s premiums in the second quarter are likely to have benefited from new business opportunities, better pricing, strong renewal retention, expanded shares on attractive renewals, global presence and product diversification. The Zacks Consensus Estimate for premiums earned is pegged at $2. billion, indicating an increase of 19.4% from the year-ago reported figure.

The Insurance segment is likely to have benefited from product diversification, international insurance growth, ramp up of Canadian and European platforms, and expense management.

Net investment income is likely to have benefited from higher income from fixed income portfolio, increase in limited partnership income, higher dividend income from equity portfolio, and increased income from other invested assets. The Zacks Consensus Estimate for net investment income is pegged at $202 million, indicating more than five-fold increase from the year-ago reported figure.

A benign catastrophe environment is likely to aid underwriting results. The consensus estimate for combined ratio is pegged at 90, indicating an improvement of 800 basis points from the year- ago reported number.  

The consensus estimate for Reinsurance segment combined ratio is pegged at 88. The consensus estimate for Insurance segment combined ratio is pegged at 93, an improvement of 1000 basis points.

The Zacks Consensus Estimate for the second quarter is pegged at $9.00, indicating more than four-fold rise from the year-ago reported quarter.

What the Zacks Model Says

Our proven model does not conclusively predict an earnings beat for Everest Re this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case as you can see below.

Earnings ESP: Everest Re has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $9.00 You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Everest Re Group, Ltd. Price and EPS Surprise

Everest Re Group, Ltd. Price and EPS Surprise

Everest Re Group, Ltd. price-eps-surprise | Everest Re Group, Ltd. Quote

Zacks Rank: Everest Re currently carries a Zacks Rank of 3.

Stocks to Consider

Some insurance stocks with the right combination of elements to come up with an earnings beat this time around are:

The Allstate Corporation (ALL - Free Report) presently has an Earnings ESP of +1.35% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Chubb Limited (CB - Free Report) currently has an Earnings ESP of +4.00% and is a Zacks #2 Ranked stock.

Arch Capital Group (ACGL - Free Report) currently has an Earnings ESP of +11.11% and is a Zacks #3 Ranked stock.