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Hamilton, Bermuda-based Everest Group, Ltd. (EG) provides reinsurance and insurance products. Valued at a market cap of $15.4 billion, the company offers property, casualty, and specialty reinsurance and insurance solutions, as well as coverage for catastrophe risks, professional liability, and claims management and support services.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and EG fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the insurance - reinsurance industry. With a strong global presence, the company serves clients in North America, Latin America, Europe, and Asia-Pacific, leveraging its underwriting expertise and risk management capabilities. Additionally, its strategic focus on innovation and expanding specialty lines, such as marine, aviation, and professional liability insurance, reinforces its position as a key player in the industry.
This insurance company is currently trading 11.1% below its 52-week high of $407.30, reached on Oct. 4, 2024. Shares of EG have marginally declined over the past three months, outperforming the broader Nasdaq Composite’s ($NASX) 8.8% loss during the same time frame.
Moreover, on a YTD basis, shares of EG are slightly down, compared to NASX’s 5.4% downtick. However, in the longer term, EG has fallen 7.6% over the past 52 weeks, lagging behind NASX’s 11.5% gain over the same time frame.
To confirm its recent bullish trend, Everest Group has been trading above its 50-day moving average since late February, with slight fluctuations. However, it has remained below its 200-day moving average since early December, 2024.
EG released its Q4 earnings results on Feb. 3. Shares of the company plunged 1% the following day as it reported a mixed performance. Its revenue advanced 26.7% year-over-year to $4.6 billion and topped Wall Street expectations by 4.5%. However, it reported a net operating loss of $18.39 per share, a sharp decline from a net operating income of $25.18 per share recorded in the previous-year quarter. This bottom line figure was also worse than the consensus expectations of a $16.65 per share loss, primarily due to the net unfavorable development of prior-year loss reserves in U.S. casualty lines. Additionally, its insurance segment’s gross written premium fell 1.5% year-over-year to $1.4 billion, further weighing on investor sentiment.
Everest Group has lagged behind its rival, RenaissanceRe Holdings Ltd.’s (RNR) 3.1% gain over the past 52 weeks but has outpaced RNR’s 3.9% decline on a YTD basis.
Given EG’s recent outperformance relative to the Nasdaq, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 14 analysts covering it, and the mean price target of $397.69 suggests a 9.8% premium to its current levels.
