On Aug 13, Zacks Investment Research upgraded
Everest Re Group Ltd
) to a Zacks Rank #1 (Strong Buy).
BERKSHIRE HTH-A (BRK.A): Free Stock Analysis
BERKSHIRE HTH-B (BRK.B): Free Stock Analysis
GLOBAL INDEMNTY (GBLI): Free Stock Analysis
HCI GROUP INC (HCI): Free Stock Analysis
EVEREST RE LTD (RE): Free Stock Analysis
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Why the Upgrade?
Everest Re Group has been witnessing rising earnings estimates on
the back of solid second-quarter results. Moreover, this property
and casualty insurer delivered positive earnings surprises in the
past 4 quarters with an average beat of 59.5%. The long-term
expected earnings growth rate for this stock is 10%.
Everest Re Group reported second-quarter 2013 results on Jul 23.
Operating net earnings of $5.10 per share were approximately 20%
higher than the Zacks Consensus Estimate of $4.26 per share.
Earnings were also up 20% year over year.
Earnings were primarily aided by solid top-line growth of 14.6%.
The upside was driven by growth in premiums earned, which
improved 11% year over year to $1.15 billion.
Underwriting income of Everest Re Group improved 25% year over
year to $143 million. The combined ratio improved to 87.6% from
89.0% in the year-ago quarter. Everest Re Group spent $211.3
million to buy back 1.6 million shares.
Operating cash flow improved 22.6% year over year to $170.2
million in the second quarter. Book value per share increased
4.1% to $136.31 as on Jun 30, 2013 from $130.96 as on Dec 31,
2012. Return on equity was 16.1%, better than 15.3% in 2012.
The Zacks Consensus Estimate for 2013 increased 6.4% to $18.04
per share as 8 of 9 estimates were revised higher over the last
30 days. For 2014, 8 of 9 estimates were revised higher over the
same time frame, lifting the Zacks Consensus Estimate by 4.8% to
$17.25 per share.
Other Stocks to Consider
Among other property and casualty insurers,
Berkshire Hathaway Inc
Global Indemnity plc
HCI Group, Inc.
) also hold the same Zacks Rank #1 (Strong Buy) and look