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What's in the Cards for Everest Re (RE) This Earnings Season?

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Everest Re Group is slated to report fourth-quarter 2021 earnings on Feb 9, after market close. The company delivered a negative earnings surprise of 3.88% in the last reported quarter.

Factors to Consider

Premium growth is likely to have benefited from improved economic conditions, exposure growth, new business opportunities, favorable double-digit rate environment and high renewal retention.

The Insurance segment is likely to have benefited from increases in specialty casualty business, professional liability business and short-tail business, including property.

The Reinsurance segment is likely to have been aided by increases in most lines of business, notably casualty pro-rata business, casualty excess of loss business and property catastrophe excess of loss business, as well as the positive impact of foreign exchange rate movement.

The Zacks Consensus Estimate for premiums earned is pegged at $2.8 billion, indicating an increase of 15.7% from the year-ago reported figure.

Net investment income is likely to have benefited from an increase in limited partnership income, higher income from other alternative investments and higher reported net asset values. The Zacks Consensus Estimate for net investment income is pegged at $235 million, indicating an increase of 5.8% from the year-ago reported figure.

Improved pricing and a not-so-active catastrophe environment are likely to have aided underwriting profitability.

The Zacks Consensus Estimate for Everest Re’s fourth-quarter earnings is currently pegged at $9.23 per share. It had reported a loss of $1.12 per share in the year-ago period. 

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. But that’s not the case here.

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 $9.23. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Everest Re Group, Ltd. Price and EPS Surprise

Zacks Rank: Everest Re carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Some stocks from the finance sector with the apt combination of elements to surpass estimates this reporting cycle are as follows:

Arch Capital Group (ACGL - Free Report) has an Earnings ESP of +1.48% and a Zacks Rank #2. The Zacks Consensus Estimate for Arch Capital’s 2022 earnings has moved 1.1% north in the past 30 days. ACGL’s expected long-term earnings growth rate is pegged at 10%.

The Zacks Consensus Estimate for Arch Capital’s 2022 earnings implies a year-over-year increase of 31.5%. ACGL’s earnings surpassed estimates in each of the last four quarters, the average beat being 32.7%.

American International Group (AIG - Free Report) has an Earnings ESP of +4.88% and a Zacks Rank #3. The Zacks Consensus Estimate for American International’s 2022 earnings has moved 0.2% north in the past 30 days. AIG’s expected long-term earnings growth rate is pegged at 10%.

The Zacks Consensus Estimate for American International’s 2022 earnings implies a year-over-year increase of 15.6%. AIG’s earnings surpassed estimates in three of the last four quarters and missed in one, the average beat being 8.5%.

American Equity Investment Life Holding has an Earnings ESP of +2.86% and a Zacks Rank #3. The Zacks Consensus Estimate for American Equity’s 2022 earnings implies a year-over-year increase of 48.6%.

AEL’s earnings surpassed estimates in two of the last four quarters, and missed in the other two, the average beat being 31.4%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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