Citi starts Everest Re at Buy amid favorable reinsurance underwriting backdrop

As previously reported, Citi analyst Michael Ward initiated coverage of Everest Re with a Buy rating and $406 price target. Everest is capitalizing on “the most favorable reinsurance underwriting environment in decades” following an equity raise of about $1.5B, the analyst tells investors. The firm believes the company’s primary business is well positioned for faster growth given leverage to attractive specialty lines and international expansion and sees the growth opportunity in reinsurance as strong enough to warrant an interruption in the company’s shift towards more primary business, the analyst added.