Back to Main

Everest Re Earnings Beats Estimates - Analyst Blog

Posted: 7/24/2013 3:04:00 PM
Referenced Stocks: ACE;RE;RLI;TRV

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

To read this article on click here.

Zacks Investment Research