Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Everest Re (RE) Q2 Earnings Top Estimates, Revenues Rise Y/Y

By Zacks Investment ResearchStock MarketsJul 28, 2021 10:56PM ET
Everest Re (RE) Q2 Earnings Top Estimates, Revenues Rise Y/Y
By Zacks Investment Research   |  Jul 28, 2021 10:56PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Everest Re (NYSE:RE) Group, Ltd. RE delivered second-quarter 2021 operating net income per share of $14.63, beating the Zacks Consensus Estimate by 62.6%. The bottom line increased sevenfold year over year.

The company witnessed higher premiums across its reinsurance and insurance businesses, higher net investment income as well as improved underwriting profit. It was partly offset by higher expenses.

Everest Re Group, Ltd. Price, Consensus and EPS Surprise

Operational Update

Everest Re’s total operating revenues of nearly $2.9 billion increased 45.2% year over year on higher premiums earned and net investment income.

Gross written premiums improved 34.6% year over year to $3.2 billion. Worldwide reinsurance premiums grew 39.6% year over year at $2.1 billion. The growth was driven by the strength of the Everest global franchise. Direct insurance premiums grew 25.4% to $1 billion, primarily driven by new business in North America.

Net investment income was $407 million in the quarter under review, up more than tenfold year over year due to alternative investment gains of $266 million.

Total claims and expenses increased 15.4% to $2.3 billion primarily due to higher incurred losses and loss adjustment expenses, commission, brokerage, taxes and fees, other underwriting expenses, interest, fees and bond issue cost amortization expense and corporate expenses.

Underwriting profit increased more than fivefold to $274 million in the quarter. Underwriting profit for the Reinsurance segment increased more than threefold to $232.3 million. Underwriting income in the Insurance segment was $41.3 million against the year-ago loss of $18.6 million.

Combined ratio improved 820 basis points (bps) to 89.3%. Excluding the pandemic’s impact, attritional combined ratio was 87.6%, improving 90 bps from the prior-year period.

Combined ratio of the Reinsurance segment improved 750 bps to 87.9% while the same improved 990 bps to 93.5% for the Insurance segment.

Pre-tax catastrophe losses were $45 million, which increased threefold from the year-ago quarter.

Financial Update

Everest Re exited the quarter with total investments and cash of $27.1 billion, up 6.3% from the 2020 level. Shareholder equity at the end of the reported quarter increased 7.1% from 2020 end to $10.4 billion.

Book value per share was $260.32 as of Jun 30, 2021, up 7% from the 2020-end level.

Annualized net income return on equity was 28.4%, reflecting an expansion of 1950 bps from the year-ago period.

Everest Re’s cash flow from operations was $723.6 million in the second quarter, up 20.9% year over year.

The company paid common share dividends of $62 million during the quarter.
The company bought back shares worth $16.8 million in the quarter.

Zacks Rank

Everest Re currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

Among other insurance industry players, which have reported second-quarter earnings so far, the bottom line of The Progressive Corporation (NYSE:PGR) PGR, RLI (NYSE:RLI) Corp. RLI and The Travelers Companies (NYSE:TRV), Inc. TRV beat the respective Zacks Consensus Estimate.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

RLI Corp. (RLI): Free Stock Analysis Report

The Travelers Companies, Inc. (TRV): Free Stock Analysis Report

Everest Re Group, Ltd. (RE): Free Stock Analysis Report

The Progressive Corporation (PGR): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research
Everest Re (RE) Q2 Earnings Top Estimates, Revenues Rise Y/Y

Related Articles

Everest Re (RE) Q2 Earnings Top Estimates, Revenues Rise Y/Y

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email