On May 28, the Bermuda-based property and casualty reinsurer and
Everest Re Group Ltd.
) scaled 52-week high of $162.18 per share. The momentum in the
stock price was impelled by strong first-quarter earnings, which
led to a positive earnings surprise of 13.8%.
Everest Re is a niche player in the U.S. reinsurance market. The
company is benefiting from flight-to-quality, rolling out new
products, expanding its relationships with some larger clients and
writing U.S. property exposures.
The company is also generating strong results in its insurance
segment, reflecting the impact of the initiatives that were
effectuated over the last couple of years. The company has been
successful growing in the areas that it had targeted, including
non-program workers' comp, casualty, specialty lines, property,
Excess & Surplus and DIC, non-standard auto and accident and
health. Everest Re continues to see primary rate improvements in
almost all insurance segments, which bode well for growth going
Everest Re is also expanding its presence in the international
markets which command higher margins and are accretive to the
company's return on equity.
Everest Re's efforts to maintain its combined ratio at favorable
levels over a long time is also commendable given tough operating
conditions in the insurance industry.
Moreover, the company's strong cash flow generation, stable capital
position and intelligent use of capital via dividend payment and
share buyback continue to attract investors.
Everest Re carries a Zacks Rank #3 (Hold). Meanwhile, better-ranked
Allied World Assurance Company Holdings, AG
Aspen Insurance Holdings Ltd.
AmTrust Financial Services, Inc.
) all with Zacks Rank # 1 (Strong Buy) look attractive.
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AMTRUST FIN SVC (AFSI): Free Stock Analysis
ASPEN INS HLDGS (AHL): Free Stock Analysis
ALLIED WORLD AS (AWH): Free Stock Analysis
EVEREST RE LTD (RE): Free Stock Analysis Report
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