J.P. Comments On Everest Re Group Following New Zealand Earthquake

On March 17, 2011, Everest Re RE provided its initial 1Q 2011 net loss estimate for the New Zealand earthquake in the range of $140-$210 million and Australian floods of $45 million. As a result, JP Morgan is lowering its 2011-2013 operating EPS estimates by $13.05, $0.70, and $0.80 to a net loss of $3.25 and EPS of $9.45 and $9.25, respectively. J.P Morgan's lower EPS estimates also reflect an estimate for Japan earthquake losses in 1Q 2011, lower share repurchases in 2011, and assume no improvement in property reinsurance pricing. JP Morgan has a $90 PT and Neutral rating on RE RE closed Monday at $82.61