What is Everest Group Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, Everest Group's Probability of Financial Distress (%) is 0.01%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of Everest Group's Probability of Financial Distress (%)
For the Insurance - Reinsurance subindustry, Everest Group's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Everest Group's Probability of Financial Distress (%) Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Everest Group's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Everest Group's Probability of Financial Distress (%) falls into.
Everest Group Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | -9.08 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.01% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For insurance companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
Everest Group (Everest Group) Business Description
Traded in Other Exchanges
Address
141 Front Street, Seon Place - 4th Floor, P.O. Box HM 845, Hamilton, BMU, HM 19
Everest Group Ltd is engaged in providing insurance services in the U.S., Bermuda, and international markets. It operates in Reinsurance and Insurance business. The Reinsurance operation writes property and casualty reinsurance and specialty lines of business, on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies. The Insurance operation writes property and casualty insurance directly and through brokers, surplus lines brokers, and general agents within the U.S., Bermuda, Canada, Europe, and South America.
Executives
| Juan C Andrade |
officer: President and CEO |
THE HARTFORD, ONE HARTFORD PLAZA, HARTFORD CT 06155 |
| Meryl D Hartzband |
director |
C/O THE NAVIGATORS GROUP, INC., 400 ATLANTIC STREET, 8TH FLOOR, STAMFORD CT 06901 |
| Hazel Mcneilage |
director |
16600 SWINGLEY RIDGE ROAD, CHESTERFIELD MO 63017 |
| John A Weber |
director |
COPLEY SQUARE CAPITAL MANAGEMENT, 108 MYRTLE STREET, NORTH QUINCY MA 02171 |
| Sanjoy Mukherjee |
officer: General Counsel |
477 MARTINSVILLE ROAD, LIBERTY CORNER NJ 07938 |
| Galtney William F Jr |
director |
THE GALTNEY GROUP, INC., 820 GESSNER, SUITE 1000, HOUSTON TX 77024-4259 |
| Roger M. Singer |
director |
P.O. BOX 2756, DURANGO CO 81302 |
| John P Doucette |
officer: Executive VP and CUO |
477 MARTINSVILLE ROAD, LIBERTY CORNER NJ 07938 |
| Mike Karmilowicz |
officer: EVP, Pres/CEO Insurance Div |
100 EVEREST WAY, WARREN NJ 07059 |
| James Allan Williamson |
officer: EVP, Chief Operating Officer |
100 EVEREST WAY, WARREN NJ 07059 |
| Mark Kociancic |
officer: EVP & CFO |
477 MARTINSVILLE ROAD, LIBERTY CORNER NJ 07938 |
| Geraldine Losquadro |
director |
200 EAST 74TH STREET APT 10, NEW YORK CITY NY 10021 |
| Joseph V Taranto |
director, officer: Chairman and CEO |
EVEREST REINSURANCE CO, 100 EVEREST WAY, WARREN NJ 07059 |
| John A Graf |
director |
477 MARTINSVILLE ROAD, LIBERTY CORNER NJ 07938 |
| Jonathan Zaffino |
officer: SVP & President Everest Nat'l |
477 MARTINSVILLE ROAD, LIBERTY CORNER NJ 07938 |
Everest Group (Everest Group) Headlines
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