Jefferies downgrades Everest Group to 'hold' on reserve concerns

Everest

26/11/2024 12:03

** Jefferies downgrades reinsurer Everest Group  EG.N  to
"hold" from "buy"
    ** Brokerage says with EG conducting long-tail deep dive
reserve studies within its insurance segment in Q4 2024,
investors are expecting reserve strengthening
    ** But less informative reserve disclosures from EG limit
its ability to quantify potential strengthening
    ** Insurers set aside reserves or estimated amounts to meet
any future claims they may have to payout
    ** Brokerage expects EG shares to be largely range-bound
until investor concerns are put to rest   
    ** Seven of 13 brokerages rate the stock "buy" or higher and
six "hold"; median PT $420 - LSEG data
    ** As of last close, EG shares up 10.3% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))