NYSE:RE

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Established dividend payer and good value.


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

Stable Share Price: RE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.0%

RE

-6.1%

US Insurance

-2.0%

US Market


1 Year Return

-17.7%

RE

-25.5%

US Insurance

-15.1%

US Market

Return vs Industry: RE exceeded the US Insurance industry which returned -25.5% over the past year.

Return vs Market: RE underperformed the US Market which returned -15.1% over the past year.


Shareholder returns

REIndustryMarket
7 Day-6.0%-6.1%-2.0%
30 Day-29.8%-28.4%-19.7%
90 Day-35.6%-33.3%-23.2%
1 Year-15.7%-17.7%-23.6%-25.5%-13.4%-15.1%
3 Year-18.0%-23.5%-11.8%-18.7%10.9%3.7%
5 Year11.1%-1.1%10.6%-2.8%28.4%14.4%

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

Valuation

Is Everest Re Group undervalued compared to its fair value and its price relative to the market?

12.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RE ($178.02) is trading below our estimate of fair value ($202.42)

Significantly Below Fair Value: RE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RE is good value based on its PE Ratio (7.2x) compared to the Insurance industry average (8.2x).

PE vs Market: RE is good value based on its PE Ratio (7.2x) compared to the US market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: RE is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: RE is good value based on its PB Ratio (0.8x) compared to the US Insurance industry average (0.8x).


Next Steps

Future Growth

How is Everest Re Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RE's forecast earnings growth (4.1% per year) is above the savings rate (1.7%).

Earnings vs Market: RE's earnings (4.1% per year) are forecast to grow slower than the US market (13.4% per year).

High Growth Earnings: RE's earnings are forecast to grow, but not significantly.

Revenue vs Market: RE's revenue (4.8% per year) is forecast to grow slower than the US market (7.1% per year).

High Growth Revenue: RE's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RE's Return on Equity is forecast to be low in 3 years time (9.8%).


Next Steps

Past Performance

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

-20.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RE has high quality earnings.

Growing Profit Margin: RE's current net profit margins (12.1%) are higher than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: RE's earnings have declined by -20% per year over the past 5 years.

Accelerating Growth: RE's earnings growth over the past year (1031.2%) exceeds its 5-year average (-20% per year).

Earnings vs Industry: RE earnings growth over the past year (1031.2%) exceeded the Insurance industry 43.7%.


Return on Equity

High ROE: RE's Return on Equity (11.1%) is considered low.


Next Steps

Financial Health

How is Everest Re Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: RE has a low level of unsold assets or inventory.

Debt Coverage by Assets: RE's debt is covered by short term assets (assets are 9.6x debt).


Financial Institutions Analysis

Asset Level: RE's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if RE has a sufficient allowance for bad loans.

Low Risk Liabilities: RE reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if RE has an acceptable proportion of non-loan assets held.

Low Risk Deposits: RE has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if RE has an appropriate level of bad loans.


Next Steps

Dividend

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

3.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RE's dividend (3.48%) is higher than the bottom 25% of dividend payers in the US market (2.05%).

High Dividend: RE's dividend (3.48%) is low compared to the top 25% of dividend payers in the US market (5.71%).


Stability and Growth of Payments

Stable Dividend: RE's dividends per share have been stable in the past 10 years.

Growing Dividend: RE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.2%), RE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RE's dividends in 3 years are forecast to be well covered by earnings (27.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Juan Andrade (53yo)

0.25

Tenure

Mr. Juan Carlos Andrade has been Chief Executive Officer and President at Everest Re Group, Ltd. since January 1, 2020. He is Chairman, President & CEO at Everest Reinsurance Holdings, Inc. since January 1 ...


Leadership Team

NamePositionTenureCompensationOwnership
Craig Howie
Executive VP7.92yrsUS$1.61m0.048% $3.5m
Sanjoy Mukherjee
General Counsel and Corporate Secretaryno dataUS$1.83m0.096% $7.0m
John Doucette
Executive VP4yrsUS$2.42m0.066% $4.8m
Jonathan Zaffino
Executive VP4yrsUS$1.96m0.039% $2.8m
Juan Andrade
President & CEO0.25yrno data0.11% $8.0m
Jack Nelson
Senior VP & Chief Investment Officerno datano datano data
Jon Levenson
Head of Investor Relations1.42yrsno datano data
Dane Lopes
Chief Commercial Officer of Everest Insurance Division and Group Head of Marketing & Communicationsno datano datano data
Luis Monteagudo
Senior Vice Presidentno datano datano data
Dennis Alba
Senior Vice Presidentno datano datano data

4.0yrs

Average Tenure

53yo

Average Age

Experienced Management: RE's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Graf
Independent Director3.92yrsUS$506.76k0.029% $2.1m
Joseph Taranto
Chairman of the Board20.17yrsUS$2.01m0.76% $55.0m
Dominic Addesso
Non-Independent Director7.58yrsUS$7.07m0.25% $17.9m
Meryl Hartzband
Director0.92yrno data0.0072% $520.9k
William Galtney
Independent Lead Directorno dataUS$507.13k0.17% $12.7m
Roger Singer
Independent Director10.17yrsUS$517.13k0.036% $2.6m
John Amore
Independent Director7.58yrsUS$507.13k0.045% $3.3m
John Weber
Independent Director16.92yrsUS$517.13k0.035% $2.5m
Geraldine Losquadro
Independent Director5.92yrsUS$507.13k0.027% $2.0m

7.6yrs

Average Tenure

68yo

Average Age

Experienced Board: RE's board of directors are considered experienced (7.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Everest Re Group, Ltd.
  • Ticker: RE
  • Exchange: NYSE
  • Founded: 1973
  • Industry: Reinsurance
  • Sector: Insurance
  • Market Cap: US$7.266b
  • Shares outstanding: 40.81m
  • Website: https://www.everestre.com

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
E1VE34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

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. Reinsurance, International, Bermuda, and Insurance. The U.S. Reinsurance segment writes property and casualty reinsurance; and specialty lines of business, including marine, aviation, surety, and accident and health insurance through reinsurance brokers, as well as directly with ceding companies in the United States. The International segment writes property and casualty reinsurance in Canada, Singapore, Brazil, Miami, and New Jersey. The Bermuda segment provides reinsurance and insurance to property and casualty markets through brokers and directly with ceding companies in Bermuda; and reinsurance to the United Kingdom and European markets. The Insurance segment writes property and casualty insurance products directly, as well as through general agents, brokers, and surplus lines brokers in the United States, Canada, and Europe. The company also provides property and casualty reinsurance and insurance coverages, such as errors and omissions liability, directors' and officers' liability, medical malpractice, and worker’s compensation products. Everest Re Group, Ltd. was founded in 1973 and is headquartered in Hamilton, Bermuda. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 01:18
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.