Everest Group Ltd

Everest Group is a global reinsurance and specialty insurance business known for its disciplined cost structure and high-quality underwriting. The company is currently in a soft market but is strategically shrinking its top line while building balance sheet strength. This approach positions Everest Group to capitalize on future hard markets. The manager highlights that Everest Group trades at less than one times tangible book value, while companies that allocate capital intelligently are worth two times tangible book value or more. The firm is using its free cash flow to repurchase stock at less than 50% of estimated fair value, resulting in double-digit value growth per share even in a declining revenue environment.

Everest Group is a global reinsurance and specialty insurance business known for its disciplined cost structure and high-quality underwriting. The company has significantly grown book value per share during the most recent hard market, emphasizing intrinsic value over short-term earnings. In the current soft market, Everest is intelligently allocating capital, shrinking their top line while building balance sheet strength, and using free cash flow to repurchase stock at less than 50% of our estimate of fair value. This strategy is expected to yield double-digit value growth per share even amidst declining revenue.

Everest Group is a global reinsurance and specialty insurance business known for its disciplined cost structure and high-quality underwriting. The company has significantly grown book value per share during the most recent hard market, emphasizing intrinsic value over short-term earnings. In the current soft market, Everest is intelligently allocating capital, shrinking their top line while building balance sheet strength, and using 100% of its FCF to repurchase stock at less than 50% of estimated fair value. This strategy is expected to yield double-digit value growth per share even amidst declining revenue.

Everest Group is a global reinsurance and specialty insurance business known for its disciplined cost structure and high-quality underwriting. The company is allocating capital brilliantly in the current soft market, shrinking their top line while building balance sheet strength. This strategy positions them well for when the market inevitably turns hard again. We applaud Everest Group’s emphasis on growing intrinsic value per share over the long term instead of managing short-term earnings per share. In a soft market with declining revenue, we are enjoying double-digit value growth per share.