DB:ERE

Stock Analysis Report

Everest Re Group

Executive Summary

Everest Re Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Bermuda, and internationally.

Snowflake

Fundamentals

Average dividend payer with moderate growth potential.


Similar Companies

Share Price & News

How has Everest Re Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.3%

DB:ERE

0.5%

DE Insurance

-0.7%

DE Market


1 Year Return

18.1%

DB:ERE

21.2%

DE Insurance

-7.6%

DE Market

ERE underperformed the Insurance industry which returned 21.2% over the past year.

ERE outperformed the Market in Germany which returned -7.6% over the past year.


Share holder returns

EREIndustryMarket
7 Day-1.3%0.5%-0.7%
30 Day1.8%2.1%-0.8%
90 Day10.4%2.1%-3.8%
1 Year21.0%18.1%26.5%21.2%-4.7%-7.6%
3 Year47.3%37.5%85.4%63.0%18.4%8.2%
5 Year110.3%87.6%101.2%61.1%28.8%11.1%

Price Volatility Vs. Market

How volatile is Everest Re Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Everest Re Group undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Everest Re Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Everest Re Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Everest Re Group is overvalued based on earnings compared to the DE Insurance industry average.

Everest Re Group is overvalued based on earnings compared to the Germany market.


Price Based on Expected Growth

Everest Re Group is poor value based on expected growth next year.


Price Based on Value of Assets

Everest Re Group is overvalued based on assets compared to the DE Insurance industry average.


Next Steps

Future Growth

How is Everest Re Group expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

17.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Everest Re Group's revenue is expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).

Everest Re Group's earnings are expected to grow by 17.2% yearly, however this is not considered high growth (20% yearly).

Everest Re Group's revenue growth is expected to exceed the Germany market average.

Everest Re Group's earnings growth is expected to exceed the Germany market average.

Everest Re Group's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Everest Re Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Everest Re Group performed over the past 5 years?

-22.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Everest Re Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Everest Re Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Everest Re Group's 1-year earnings growth is negative, it can't be compared to the DE Insurance industry average.


Return on Equity

Everest Re Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Everest Re Group used its assets more efficiently than the DE Insurance industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Everest Re Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Everest Re Group's financial position?


Financial Position Analysis

Everest Re Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Everest Re Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Everest Re Group's level of debt (7.5%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (6.7% vs 7.5% today).

Debt is well covered by operating cash flow (138%, greater than 20% of total debt).

Unable to confirm if the interest payments on Everest Re Group's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 9.9x debt.


Next Steps

Dividend

What is Everest Re Group's current dividend yield, its reliability and sustainability?

2.40%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Everest Re Group's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.48%).

Everest Re Group's dividend is below the markets top 25% of dividend payers in Germany (3.92%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (1.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.2x coverage).


Next Steps

Management

What is the CEO of Everest Re Group's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

Dom Addesso (65yo)

5.5yrs

Tenure

US$7,066,735

Compensation

Mr. Dominic James Addesso, also known as Dom, has been Chief Executive Officer at Everest Re Group Ltd. since January 1, 2014 and its President since June 16, 2011 and its Non-Independent Director since Se ...


CEO Compensation Analysis

Dom's remuneration is higher than average for companies of similar size in Germany.

Dom's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.4yrs

Average Tenure

53yo

Average Age

The tenure for the Everest Re Group management team is about average.


Board Age and Tenure

6.8yrs

Average Tenure

68yo

Average Age

The tenure for the Everest Re Group board of directors is about average.


Insider Trading

Everest Re Group individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell€232,00316 May 19
Jonathan Zaffino
EntityIndividual
Role
Executive VP
Shares1,048
Max Price€221.38
Sell€109,71215 May 19
John Weber
EntityIndividual
Role
Member of the Board of Directors
Shares500
Max Price€219.42
Sell€178,16906 Mar 19
Roger Singer
EntityIndividual
Role
Member of the Board of Directors
Shares900
Max Price€197.97
Sell€169,79714 Aug 18
John Doucette
EntityIndividual
Role
Executive VP
Shares900
Max Price€188.66

Ownership Breakdown


Management Team

  • Sanjoy Mukherjee (52yo)

    Chief Compliance Officer

    • Tenure: 13.5yrs
    • Compensation: $1.83m
  • Jon Levenson

    Head of Investor Relations

    • Tenure: 0.7yrs
  • John Doucette (53yo)

    Executive VP

    • Tenure: 3.3yrs
    • Compensation: $2.42m
  • Craig Howie (55yo)

    Executive VP

    • Tenure: 7.2yrs
    • Compensation: $1.61m
  • Jack Nelson

    Senior VP & Chief Investment Officer

  • Dennis Alba

    Senior Vice President

  • Luis Monteagudo

    Senior Vice President

  • Ronald Diaz

    Executive VP & Head of International

    • Tenure: 2.3yrs
  • Dom Addesso (65yo)

    President

    • Tenure: 5.5yrs
    • Compensation: $7.07m
  • Jon Zaffino (46yo)

    Executive VP

    • Tenure: 4.4yrs
    • Compensation: $1.96m

Board Members

  • John Weber (74yo)

    Independent Director

    • Tenure: 16.2yrs
    • Compensation: $517.13k
  • John Graf (59yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: $506.76k
  • Meryl Hartzband (64yo)

    Director

    • Tenure: 0.2yrs
  • John Amore (70yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: $507.13k
  • Joe Taranto (70yo)

    Chairman of the Board

    • Tenure: 19.4yrs
    • Compensation: $2.01m
  • Gerri Losquadro (68yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: $507.13k
  • Roger Singer (72yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: $517.13k
  • Dom Addesso (65yo)

    President

    • Tenure: 6.8yrs
    • Compensation: $7.07m
  • William Galtney (66yo)

    Independent Lead Director

Company Information

Everest Re Group, Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Everest Re Group, Ltd.
  • Ticker: ERE
  • Exchange: DB
  • Founded: 1973
  • Industry: reinsurance
  • Sector: insurance
  • Market Cap: US$10.265b
  • Listing Market Cap: US$9.148b
  • Shares outstanding: 40.73m
  • Website: Click here

Number of Employees


Location

  • Everest Re Group, Ltd.
  • Seon Place
  • 4th Floor
  • Hamilton
  • HM 19
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RENYSE (New York Stock Exchange)YesCommon SharesUSUSDOct 1995
EREDB (Deutsche Boerse AG)YesCommon SharesDEEUROct 1995
0U96LSE (London Stock Exchange)YesCommon SharesGBUSDOct 1995

Biography

Everest Re Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Bermuda, and internationally. The company operates through four segments: U.S. Reinsuranc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/21 23:19
End of Day Share Price2019/07/19 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.