RE - Citi cuts Everest Re Group to neutral as inflation fears pick up likes AON despite lawsuit

Sezeryadigar/E+ via Getty Images The Property and casualty insurance underwriter, Everest Re Group (RE) is downgraded by Citi's Suneet Kamath from buy to neutral as inflationary pressures translate to higher claim costs. Everest Re fell 2.2%. Kamath notes that P&C underwriters are the most exposed to inflation, but commercial lines insurers may face a "triple whammy" in the coming quarters due to; A rebound in social inflation as the U.S. court system reopens, an increase in claim costs, and a slowing in the commercial lines pricing cycle. He sees additional risk from a less robust pricing environment and headline risk related to a global minimum tax. On the other hand, Aon plc (AON), the insurance broker, remains a top pick for Citi even following the DOJ's lawsuit to block the deal with Willis Towers (WLTW) which drives near-term uncertainty until it's settled. Kamath sees limited downside in the stock price if the

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Citi cuts Everest Re Group to neutral as inflation fears pick up, likes AON despite lawsuit