Everest Group declares $2 dividend per common share

HAMILTON, Bermuda - Everest Group, Ltd., a global leader in property, casualty, and specialty reinsurance and insurance solutions, has announced a dividend payout to its shareholders. The company's Board of Directors declared a $2.00 per common share dividend, which is scheduled to be payable by September 27, 2024, to shareholders on record as of September 16, 2024.

The Bermuda-based underwriting firm, known for its disciplined approach to underwriting, risk, and capital management over its 50-year history, has made this declaration as part of its commitment to delivering value to its shareholders. Everest operates globally through its affiliates and is a recognized name in the insurance and reinsurance sectors.

Everest's common stock is listed on the New York Stock Exchange (NYSE: EG) and is a component of the S&P 500 index, reflecting its standing in the market. The dividend announcement is consistent with the company's practice of providing returns to its investors and underscores its financial health and stability in the competitive insurance industry.

In other recent news, Everest Group's earnings report did not meet expectations, leading to adjustments in price targets by Evercore ISI and BMO Capital. Evercore ISI lowered their price target to $410, primarily due to the company's strategy in the property catastrophe segment and a delay in achieving an Insurance Combined Ratio of 90-92% to the second half of 2025. Meanwhile, BMO Capital raised their price target to $403, citing anticipated improvements in the combined ratio within the insurance segment.

Everest Group has also made significant changes in its leadership, appointing Bill Hazelton as Executive Vice President of Everest Insurance and President of North America Insurance. In addition, Everest Consolidator Acquisition Corp., an arm of Everest Group, has extended its merger deadline to August 28, 2024, depositing $150,000 into its trust account to facilitate this extension.

Furthermore, Everest Re (NYSE:EG) Group Limited, another entity within the group, reported a strong Q2 2024 performance, with a return on equity of 20%, gross written premiums of $4.7 billion, and net investment income over $0.5 billion. The company's expansion in reinsurance and insurance segments, particularly in property lines and specialty business, contributed to these results. Everest Re Group aims to achieve its insurance combined ratio objective by 2025 and plans to enter the Italian market before the year ends. These are some of the recent developments in Everest Group.

InvestingPro Insights

Everest Group's recent dividend announcement is a testament to its commitment to shareholder returns, and a closer look at the company's financials through InvestingPro data provides further insights into its performance. With a market capitalization of $15.58 billion, Everest Group stands as a significant entity in the insurance industry. The company's P/E ratio, which stands at a modest 5.33, suggests that the stock is trading at a lower earnings multiple relative to some peers, potentially indicating a value opportunity for investors.

InvestingPro Tips highlight that Everest Group has maintained dividend payments for an impressive 30 consecutive years, demonstrating a strong track record of returning value to shareholders consistently. Additionally, analysts have a positive outlook on the company, predicting it will be profitable this year, which is supported by the fact that the company has been profitable over the last twelve months. This aligns with the company's dividend declaration and may reassure investors of the company's financial stability.

InvestingPro data further reveals a dividend yield of 2.23%, which is attractive to income-focused investors, especially considering the company's history of dividend growth, which stands at 21.21% over the last twelve months. Although the stock has taken a hit over the last week with a price total return of -8.71%, the long-term view, underscored by 30 years of consistent dividend payments, may offer a silver lining for long-term investors.

For those interested in a deeper analysis, there are additional InvestingPro Tips available on the Everest Group profile at https://www.investing.com/pro/EG, which could provide more comprehensive investment considerations.

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