Reasons Why Investors Should Buy Everest Re Group (RE) Stock
Zacks Investment Research | Jan 08, 2020 09:12PM ET
Everest Re Group, Ltd (NYSE:RE) appears to be well poised for growth, given its product diversification, higher investment income, solid capital position and financial flexibility.
Performance of the insurance segment has been stable for the past few years. This segment has witnessed growth on the back of initiatives like product diversification, staffing up of underwriting operations and expansion of the relationship between property and casualty. Premiums increased 21% in the first nine months of 2019.
The Reinsurance segment has also managed to outperform the broader market. Development of strategic partnerships, various product offerings, hedging abilities and distribution facilities aided the company in making the most of the opportunities, which drove segment growth. Premiums at this segment increased 3.3% in the first nine months of 2019.
This property and casualty insurer also witnessed an increase in investment income on the back of improvements in limited partnership investments and higher yields on fixed income portfolio.
Banking on solid capital position, financial flexibility and long-term operating performance, the company deploys capital effectively via share buyback and dividend payouts to enhance shareholders value. The company has been hiking dividend each year (CAGR of 23.9% from 2013 to 2018). Also, share buybacks boost the bottom line. Everest Re’s dividend yield of 2.3% compares favorably with the industry average of 0.4%. These endeavors make the stock an attractive pick for yield-seeking investors.
The stock has a favorable Zacks Investment Research
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