Reputation carries a lot of weight with insurance investors, and Everest Re’s (RE)
recent adverse developments from the 2017 catastrophe season have
dented the company’s reputation as an above-average risk manager. Even
so, the total impact on the business hasn’t been that unrecoverable, and
I think the company is showing that it still has opportunities to grow
in both its core reinsurance and insurance operations.
Everest
Re shares appear to be trading at roughly a double-digit discount to my
estimate of fair value, implying solid double-digit annualized return
potential from here. With a low-cost model and an attractive size/share
opportunity in the reinsurance space, I think this is a name worth
considering today.
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Everest Re Dented, But Not Permanently Damaged
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