Everest Re took wing on Q4 results with biggest boost in analyst eyes

Everest Re may have done most amongst global reinsurers to impress with fourth quarter earnings and 2023 outlook, topping the leaderboard for earnings forecast upgrades from equity market analysts following revelation of their Q4 numbers and 2023 outlook.

“Expectations for [net investment income] generally increased and premium growth is expected to continue through 2023,” Gallagher Re said of upside drivers to consensus forecasts.

Concern remained palpable for loss cost inflation, both social inflation for casualty and economic inflation for shorter-tail lines.

The market's total average consensus 2023 earnings estimate was “virtually unchanged” following FY 2022 results publication, buy a flat headline covered notable variation.

The group of global reinsurers took a 0.8% upward revision to estimates “due to more favourable growth and margin expectations.”

Everest Re led that crowd with a 9.0% gain, which, together with an upward revision for SCOR, was more than enough to offset the downward revision for Hannover Re, which suffered most in analyst eyes amongst firms monitored by Gallagher Re.

North America and Bermuda names took an aggregate 0.5% upward earnings revision, with most notable gains including an 8.2% uplift for Fairfax and a 9.3% uplift for Cincinnati Financial on what Gallagher Re attributes to higher net investment income. AIG and Markel stood out in the group for negative revisions.

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