Sunday, September 28, 2014

Seeking Alpha: Everest Re Managing Through A Tough Environment

The reinsurance markets remain quite challenging today, as companies like Everest Re (NYSE:RE) find themselves sandwiched between double-digit price declines in many reinsurance lines and low rates of return on their investment portfolio. Everest Re has been doing a good job of managing through this tough period, using new products and revised strategies to grow despite the pricing pressures and maintaining a solid balance sheet.

I liked Everest Re six months ago as something of a relative value play in the sector and the shares have done alright since then. I do still think that there are opportunities for Everest Re to turn the changes in the industry to its favor (including managing/advising third-party capital), but rate pressure is going to take a toll on returns and the shares aren't quite as interesting to me now. I still like Everest Re as a company, but I just happen to think that there are more interesting risk-reward opportunities in areas like life and P&C insurance.

Read more here:
Everest Re Managing Through A Tough Environment

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