Y - Everest Re And The Return Of The Value Of Float

• Everest Re is a well-managed reinsurer, consistently performing in the top of its class, achieving good growth in book value per share with lower than average gearing.
• Investment returns have been depressed by extremely low rates for a very long time; draining float's value as a stable component of insurer earnings.
• Valuations have followed suit, with insurers seldom trading at much above book value.  As interest rates rise, P&C insurers like Everest should see a re-rating.
• A brief comparison with Alleghany, the insurer in the process of being acquired by Berkshire Hathaway, is provided to show RE presents a similar opportunity.

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