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

Established dividend payer with limited growth.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.0%

RE

0.5%

US Insurance

0.4%

US Market


1 Year Return

25.8%

RE

15.8%

US Insurance

13.1%

US Market

Return vs Industry: RE exceeded the US Insurance industry which returned 15.8% over the past year.

Return vs Market: RE exceeded the US Market which returned 13.1% over the past year.


Shareholder returns

REIndustryMarket
7 Day2.0%0.5%0.4%
30 Day6.5%1.4%4.0%
90 Day8.2%3.2%7.4%
1 Year28.9%25.8%18.7%15.8%15.6%13.1%
3 Year34.1%25.3%38.6%27.9%48.2%38.6%
5 Year75.1%56.2%66.2%46.3%62.6%44.6%

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?

32.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RE ($266.91) is trading below our estimate of fair value ($393.56)

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 poor value based on its PE Ratio (25.6x) compared to the Insurance industry average (17.1x).

PE vs Market: RE is poor value based on its PE Ratio (25.6x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: RE is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: RE is overvalued based on its PB Ratio (1.2x) compared to the US Insurance industry average (1.2x).


Next Steps

Future Growth

How is Everest Re Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RE's forecast earnings growth (11.2% per year) is above the savings rate (2.7%).

Earnings vs Market: RE's earnings (11.2% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: RE's revenue (7.6% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: RE's revenue (7.6% 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 (10.5%).


Next Steps

Past Performance

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

-24.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RE has high quality earnings.

Growing Profit Margin: RE's current net profit margins (5.4%) are lower than last year (14.1%).


Past Earnings Growth Analysis

Earnings Trend: RE's earnings have declined by -24.4% per year over the past 5 years.

Accelerating Growth: RE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RE had negative earnings growth (-59.9%) over the past year, making it difficult to compare to the Insurance industry average (-9.5%).


Return on Equity

High ROE: RE's Return on Equity (4.7%) is considered low.


Return on Assets


Return on Capital Employed


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 11.2x 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?

2.10%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years2.3%

Current dividend yield vs market & industry

Notable Dividend: RE's dividend (2.1%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: RE's dividend (2.1%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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 reasonable payout ratio (53.7%), RE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RE's dividends in 3 years are forecast to be well covered by earnings (25.3% payout ratio).


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?

4.2yrs

Average management tenure


CEO

Dom Addesso (65yo)

5.8yrs

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

Compensation vs Market: Dom's total compensation ($USD7.07M) is below average for companies of similar size in the US market ($USD10.97M).

Compensation vs Earnings: Dom's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.2yrs

Average Tenure

53yo

Average Age

Experienced Management: RE's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

7.2yrs

Average Tenure

68yo

Average Age

Experienced Board: RE's board of directors are considered experienced (7.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

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


Management Team

  • Dom Addesso (65yo)

    President

    • Tenure: 5.8yrs
    • Compensation: US$7.07m
  • John Doucette (53yo)

    Executive VP

    • Tenure: 3.6yrs
    • Compensation: US$2.42m
  • Jon Zaffino (46yo)

    Executive VP

    • Tenure: 4.8yrs
    • Compensation: US$1.96m
  • Craig Howie (55yo)

    Executive VP

    • Tenure: 7.5yrs
    • Compensation: US$1.61m
  • Sanjoy Mukherjee (52yo)

    Chief Compliance Officer

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

    Chief Operating Officer

    • Tenure: 0.2yrs
  • 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: 1yrs

Board Members

  • John Graf (59yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$506.76k
  • Joe Taranto (70yo)

    Chairman of the Board

    • Tenure: 19.8yrs
    • Compensation: US$2.01m
  • Dom Addesso (65yo)

    President

    • Tenure: 5.8yrs
    • Compensation: US$7.07m
  • Meryl Hartzband (64yo)

    Director

    • Tenure: 0.5yrs
  • William Galtney (66yo)

    Independent Lead Director

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

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$517.13k
  • John Amore (70yo)

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: US$507.13k
  • John Weber (74yo)

    Independent Director

    • Tenure: 16.5yrs
    • Compensation: US$517.13k
  • Gerri Losquadro (68yo)

    Independent Director

    • Tenure: 5.5yrs
    • 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$10.885b
  • Shares outstanding: 40.78m
  • 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 Analysis2019/11/13 23:50
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
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.