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Everest Group boosts share buyback, sets $2 dividend

Published 11/08/2024, 05:24 AM
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HAMILTON, Bermuda - Everest Group, Ltd. (NYSE:EG), a prominent global underwriting firm, has announced an expansion to its share repurchase program, with the Board of Directors approving an additional 10 million shares for buyback. Alongside this, the company has declared a dividend of $2.00 per common share, scheduled to be distributed to shareholders of record as of November 27, 2024, with payment due by December 13, 2024.

The decision to increase the share repurchase authorization reflects the company's commitment to returning value to its shareholders. Share repurchase programs are often viewed as a signal of the company's confidence in its financial stability and future prospects. The declaration of the dividend further underscores Everest's position as a company focused on providing returns to its investors.

Everest Group has established itself as a leader in the insurance and reinsurance industry, offering a wide range of property, casualty, and specialty lines of insurance. With a 50-year history of disciplined underwriting, along with robust capital and risk management strategies, the company has built a reputation for stability and reliability in the market.

The company's common stock is a constituent of the S&P 500 index, indicating its role as a significant player in the broader financial landscape. The inclusion in such a prominent index often reflects a company's solid market capitalization and liquidity, making it a benchmark for investment portfolios.

This news release serves to inform shareholders and the market of Everest's latest financial moves and its ongoing dedication to shareholder value. The information provided is based on a press release statement from Everest Group, Ltd.

In other recent news, Everest Group Limited reported a solid Q3 performance despite facing higher-than-average catastrophe losses. The insurance and reinsurance provider noted a strong annualized total shareholder return of 19.4% and an operating return on equity of 18.7% year-to-date. Gross written premiums stood at $4.4 billion, marking a 1% increase, while the combined ratio improved to 93.1%. Net investment income rose to $496 million, and shareholders' equity reached $15.3 billion, a 19.1% increase from year-end 2023.

Everest Group is in the process of selling its EverSports and Entertainment Insurance business. However, it anticipates firm pricing conditions for property and specialty lines in the upcoming January renewals. The company's CEO, Juan Andrade, noted significant progress in both reinsurance and insurance segments, with a focus on portfolio diversification and disciplined underwriting. Despite a nearly 20% decline in casualty lines in the insurance segment due to strategic portfolio adjustments, the reinsurance segment showed growth, particularly in property catastrophe excess of loss and property pro rata lines. These are the recent developments in Everest Group Limited's operations and financial performance.

InvestingPro Insights

Everest Group's recent announcement of an expanded share repurchase program and dividend declaration aligns well with its financial performance and market position. According to InvestingPro data, Everest Group boasts a market capitalization of $15.54 billion, underlining its significant presence in the insurance industry.

The company's commitment to shareholder returns is further evidenced by its attractive dividend yield of 2.18% and a notable dividend growth rate of 14.29% over the last twelve months. This aligns with an InvestingPro Tip that highlights Everest Group as a "Prominent player in the Insurance industry."

Investors may find Everest Group's valuation metrics particularly compelling. The company's P/E ratio stands at 5.7, which is relatively low and suggests potential undervaluation. This is reinforced by an InvestingPro Tip indicating that Everest Group is "Trading at a low earnings multiple."

For those interested in a deeper analysis, InvestingPro offers 8 additional tips that could provide valuable insights into Everest Group's financial health and market position. These tips, along with real-time metrics, can help investors make more informed decisions about this insurance industry leader.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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