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Everest Group Q3 profit falls on reserve strengthening, catastrophe losses

By Reuters News


Overview

  • Global reinsurance and insurance provider's Q3 net income declined year-over-year

  • Q3 net operating income decreased from prior year

  • Company repurchased $474 mln in common shares during the quarter


Outlook

  • Company did not provide specific financial guidance for future quarters or the full year in its press release


Result Drivers

  • RESERVE STRENGTHENING - Co said results were impacted by $268 mln in net unfavorable prior year reserve development, increasing the combined ratio

  • CATASTROPHE LOSSES - Co cited higher catastrophe losses, mainly from the Colombia Earthquake and Middle East events

  • INVESTMENT INCOME - Net investment income rose to $634 mln, supported by higher alternative investment returns


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Net Income

$233 mln

Q3 Group Combined Ratio

107.10%

Q3 Net Operating Income

$290 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 12 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the reinsurance peer group is "hold"

  • Wall Street's median 12-month price target for Everest Group, Ltd. is $397.00, about 1.5% above its October 27 closing price of $391.09

  • The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 three months ago


Reuters Recommended Reads

  • Oct 27 - Arch Capital Q3 net income falls, catastrophe losses rise

  • Oct 27 - RenaissanceRe Q3 swings to loss as investments decreased

  • Oct 26 - Hartford Insurance Q3 core EPS beats estimates; dividend raised


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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