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

Fundamentals

Excellent balance sheet established dividend payer.


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

3.2%

RE

0.4%

US Insurance

-0.6%

US Market


1 Year Return

13.5%

RE

7.6%

US Insurance

0.7%

US Market

RE outperformed the Insurance industry which returned 7.6% over the past year.

RE outperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

REIndustryMarket
7 Day3.2%0.4%-0.6%
30 Day6.3%2.8%2.9%
90 Day5.7%1.4%1.3%
1 Year16.2%13.5%10.3%7.6%2.9%0.7%
3 Year47.3%37.6%46.6%35.3%44.6%35.2%
5 Year83.9%64.1%71.3%50.8%61.9%44.2%

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 based on future cash flows and its price relative to the stock market?

38%

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, but not at a substantial discount (< 40%).


Price Based on Earnings

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

Everest Re Group is overvalued based on earnings compared to the United States of America 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 US 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 7 analysts?

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Everest Re Group's revenue is expected to grow by 6.6% yearly, however this is not considered high growth (20% yearly).

Everest Re Group's earnings are expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).

Everest Re Group's revenue growth is positive but not above the United States of America market average.

Everest Re Group's earnings growth is positive but not above the United States of America market average.

Everest Re Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


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?

-23.4%

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 exceeds its 5-year average (149.7% vs -23.4%)

Everest Re Group's earnings growth has exceeded the US Insurance industry average in the past year (149.7% vs 3.1%).


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 less efficiently than the US Insurance industry average last year based on Return on Assets.


Return on Capital Employed

Everest Re Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


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 (7.1%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (11.5% vs 7.1% today).

Debt is well covered by operating cash flow (210%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10.7x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 10.3x debt.


Next Steps

Dividend

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

2.28%

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 United States of America (1.44%).

Everest Re Group's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

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 well covered by earnings (2.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4x 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?

4.6yrs

Average management tenure


CEO

Dom Addesso (65yo)

5.7yrs

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 lower than average for companies of similar size in United States of America.

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


Management Age and Tenure

4.6yrs

Average Tenure

53yo

Average Age

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


Board Age and Tenure

7.0yrs

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 sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$1,259,87414 Aug 19
John Doucette
EntityIndividual
Role
Senior Key Executive
Executive VP
Shares5,000
Max PriceUS$252.10
BuyUS$121,15502 Aug 19
Meryl Hartzband
EntityIndividual
Role
Member of the Board of Directors
Director
Shares500
Max PriceUS$242.31
BuyUS$249,23402 Aug 19
John Graf
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,020
Max PriceUS$244.35
SellUS$259,91816 May 19
Jonathan Zaffino
EntityIndividual
Role
Senior Key Executive
Executive VP
Shares1,048
Max PriceUS$248.01
SellUS$123,23015 May 19
John Weber
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$246.46
SellUS$201,32106 Mar 19
Roger Singer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares900
Max PriceUS$223.69

Ownership Breakdown


Management Team

  • Dom Addesso (65yo)

    President

    • Tenure: 5.7yrs
    • Compensation: US$7.07m
  • John Doucette (53yo)

    Executive VP

    • Tenure: 3.4yrs
    • Compensation: US$2.42m
  • Jon Zaffino (46yo)

    Executive VP

    • Tenure: 4.6yrs
    • Compensation: US$1.96m
  • Craig Howie (55yo)

    Executive VP

    • Tenure: 7.3yrs
    • Compensation: US$1.61m
  • Sanjoy Mukherjee (52yo)

    Chief Compliance Officer

    • Tenure: 0yrs
    • Compensation: US$1.83m
  • Juan Andrade (53yo)

    Chief Operating Officer

    • Tenure: 0yrs
  • Jack Nelson

    Senior VP & Chief Investment Officer

    • Tenure: 0yrs
  • Luis Monteagudo

    Senior Vice President

    • Tenure: 0yrs
  • Dennis Alba

    Senior Vice President

    • Tenure: 0yrs
  • Jon Levenson

    Head of Investor Relations

    • Tenure: 0.8yrs

Board Members

  • John Graf (59yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$506.76k
  • Joe Taranto (70yo)

    Chairman of the Board

    • Tenure: 19.6yrs
    • Compensation: US$2.01m
  • Dom Addesso (65yo)

    President

    • Tenure: 5.7yrs
    • Compensation: US$7.07m
  • Meryl Hartzband (64yo)

    Director

    • Tenure: 0.3yrs
  • William Galtney (66yo)

    Independent Lead Director

    • Tenure: 0yrs
  • Roger Singer (72yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: US$517.13k
  • John Amore (70yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: US$507.13k
  • John Weber (74yo)

    Independent Director

    • Tenure: 16.3yrs
    • Compensation: US$517.13k
  • Gerri Losquadro (68yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$507.13k

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$10.776b
  • Shares outstanding: 40.74m
  • 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

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 Analysis2019/09/21 23:47
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
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.