EIG - Evercore finds 60% upside in this newly public insurer after healthy Q3 report

Evercore ISI has raised estimates and holds a Street-high price target on a recent IPO small-cap specialty casualty insurer after its earnings, noting that even the one-time items impacting the report aren't a concern for the future. Trean Insurance Group (TIG) easily topped expectations with its Q3 report, aided by better earned premium from both higher retention and gross premium growth. It did miss on expense ratio - that improved by 90 basis points to 25.1%, whereas Evercore had estimated 19%. But that was partly driven by the better than expected growth and timing of adding new programs - things that should drive better earnings in the future, Evercore notes. It also expects that one-time items running through expenses tied to Trean's summer initial public offering should fall away. (The company reiterated a 21-22% expense ratio for 2021.) Meanwhile, commentary on the conference call suggested that Trean hasn't booked any

For further details see:

Evercore finds 60% upside in this newly public insurer after healthy Q3 report