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Everest Re (RE) to Report Q1 Earnings: What's in Store?

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Everest Re Group is slated to report first-quarter 2022 earnings on Apr 27, after market close. The insurer delivered a negative earnings surprise of 1.19% in the last reported quarter.

Factors to Consider

Premium growth is likely to have benefited from an increase in reinsurance business and insurance business, positive impact from the movement of foreign exchange rates and high renewal retention.

The Insurance segment is likely to have benefited from strong new business generation in casualty and professional liability lines, exposure growth from the economic recovery and continued double-digit rate increases, strong renewal retention and favorable market conditions.

The Reinsurance segment is likely to have benefited from underlying rate increases, increased opportunities with core trading partners, and targeted growth on profitable property and casualty programs.

The Zacks Consensus Estimate for premiums earned is pegged at $2.9 billion, indicating an increase of 21.9% from the year-ago reported figure.

Net investment income is likely to have benefited from an increase in limited partnership income, higher reported net asset values and higher income from other alternative investments. The Zacks Consensus Estimate for net investment income is pegged at $218 million, indicating a decline of 16.1% from the year-ago reported figure.

Improved pricing and a not-so-active catastrophe environment are likely to have aided underwriting profitability and combined ratio. The Zacks Consensus Estimate for the combined ratio is pegged at 94, indicating an improvement from the year-ago reported figure of 98.

The Zacks Consensus Estimate for first-quarter 2022 earnings of $8.32 per share indicates an increase of 28.2% from the year-ago quarter reported figure.

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 $8.32. 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

Everest Re Group, Ltd. Price and EPS Surprise

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

Zacks Rank: Everest Re carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

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

NMI Holdings Inc. (NMIH - Free Report) has an Earnings ESP of +4.00% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at 75 cents, indicating an increase of 20.9% from the year-ago reported figure.

NMIH’s earnings beat estimates in each of the four trailing quarters of 2021.

The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +5.15% and a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at $3.08 per share, indicating a decrease of 49.6% from the year-ago reported figure.

ALL beat earnings estimates in three of the four reported quarters of 2021 and missed in one.

ProAssurance Corporation (PRA - Free Report) has an Earnings ESP of +27.54% and a Zacks Rank of 2. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at 17 cents, indicating an increase of 325% from the year-ago reported figure.

PRA’s earnings beat estimates in each of the four trailing quarters of 2021.

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


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