Everest Re Group Ltd.
) reported its third quarter 2012 operating earnings of $4.05 per
share, substantially beating the Zacks Consensus Estimate of
$3.44. The results surged 50% from $2.70 earned in the prior-year
Including after tax net realized capital gains and loss, the
company reported net income of $4.82 per share against $1.16 per
share reported in the year-ago quarter.
Total revenue for the quarter came in at $1.22 billion, up 19%
year over year. Gross written premiums were up 7% year over year
to $1.2 billion, attributable largely to the acquisition of
Net investment income dropped 3% over the prior-year quarter to
$152.0 million, primarily due to declining reinvestment rates.
Total claims and expenses were down 11% year over year to $900.0
million, primarily due to lower incurred losses and loss
The loss and combined ratios for 3Q12 were 59.8% and 87.2%,
respectively, compared with 69.0% and 95.6% recorded in the third
quarter of 2011.
The company's Insurance segment reported net premium written of
$232 million, up 14.1% year over year. The segment reported
underwriting loss of $28.2 million, compared with an underwriting
loss of $42.3 million in prior-year quarter. Combined ratio was
112.9%, compared with 119.6% in the year-ago quarter.
The Reinsurance segment reported premium written of $868.4
million, down 2.0% year over year. Underwriting gain was $157
million, up from $88.5 million in the year-ago quarter. Combined
ratio improved to 80.1% from 89.3% in the comparable quarter last
Shareholders' equity as of the end of the reported quarter was
$6.8 billion, up 12% from the $6.1 billion at December 31, 2011.
Book value per share increased 16% from $112.99 as on December
31, 2011 to $131.22 as of September 30, 2012.
Share Repurchase Update
During the quarter under review, Everest Re spent $25 million to
buyback 229,100 shares. The company is still left with 4.7
million shares under its current share buyback authorization
Everest Re currently retains a Zacks #3 Rank, which translates
into a short-term Hold rating. Its peer, Reinsurance Group of
America Inc. (
) also retains a Zacks #3 Rank.
EVEREST RE LTD (RE): Free Stock Analysis
REINSURANCE GRP (RGA): Free Stock Analysis
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