Everest Re Earnings Beats Estimates - Analyst Blog


Everest Re Group Ltd. ( RE ) reported second quarter 2013 operating earnings of $5.10 per share, substantially beating the Zacks Consensus Estimate of $4.26 per share. Earnings were also up 20% year over year. 

Including after tax net realized capital gains and loss, the company reported net income of $7.56 per share against $4.08 per share reported in the year-ago quarter.

Operational Update

Total revenue for the quarter came in at $1.35 billion, up 14.6% year over year. The increase was due to higher premium earned which increased 11% year over year to $1.15 billion.

Net investment income decreased 0.4% year over year to $148.7 million.

Total claims and expenses were up 9.5% year over year to $1.03 billion, primarily due to higher incurred losses and loss adjustment expenses, higher underwriting and interest expenses.

The combined ratio improved to 87.6% from 89.0% in the year-ago quarter. 

During the quarter, the company suffered cat loss of $90.0 million because of  tornadoes and hailstorms in the U.S. and flooding in Central Europe and Canada.

Segment Results

The company's Reinsurance  segment reported net premium written of $935.8 million, up 43.0% year over year. The segment reported underwriting gain of $134.4 million up 26% year over year. Combined ratio was 85.1%, compared with 87.0% in the year-ago quarter.

The Insurance segment reported premium written of $276.8 million, up 36% year over year. The segment reported an underwriting profit of $8.5 million, up 14% year over year.

Financial Update

Shareholders' equity as of the end of the reported quarter was $6.6 billion, compared with $6.7 billion at Dec 31, 2012. 

Book value per share increased to $136.31 as on Jun 30, 2013 from $130.960 as of Dec 31, 2012. 

Share Repurchase Update

During the quarter under review, Everest Re spent $211.3 million on share repurchase.

Everest Re currently retains a Zacks Rank #3 (Hold).  Other companies in the same industry The Travelers Companies Inc. ( TRV ), RLI Corporation ( RLI ) and ACE Limited ( ACE ) also reported second quarter 2013 earnings ahead of the Zacks Consensus Estimate. 

ACE LIMITED (ACE): Free Stock Analysis Report

EVEREST RE LTD (RE): Free Stock Analysis Report

RLI CORP (RLI): Free Stock Analysis Report

TRAVELERS COS (TRV): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: ACE , RE , RLI , TRV



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