Video: Everest Group (EG) Raising Premiums and Profits with Compelling Low Valuation
December 21, 2023 |
- 1.9% dividend yield, EG is targeting over 13% shareholder return.
- Natural disasters are becoming more frequent and more intense, with primary insurers facing restrictions on premium hikes.
- Reinsurance rates have sustained tailwinds, with Everest realizing a 26.9% increase in premiums.
- Even in the face of increased catastrophe claims, the combined ratio in all segments of the company has improved. Reinsurance combined ratio dropped 340 bps to 88.2%, and primary insurance dropped 120 bps to 91.5%.
- International expansion effort in the primary insurance area resulting in premium growth of 13.5% year over year.
- Strong EPS growth to an expected $61 per share in 2024
- Compelling low valuation with a PE of 6