"We expect business and pricing condition in reinsurance (75% of premiums) will continue to deteriorate in 2014 as both new and incumbent capital seeks business to write and insurers continue the recent trend of raising retentions (and thus reducing business ceded to reinsurers)," writes analyst Michael Nannizzi, cutting Everest Re (RE) to Sell with price target of $140. "Further, given our cautious view on the primary market, we are less confident about the prospects for accelerating improvement in the company’s primary insurance operations (25% of premiums)."
The move comes after a big run for the stock, up 43% YTD.
Shares -1.7% premarket to $154.25
Another reinsurer, XL Group is cut to Sell at Deutsche.
Earlier: Nannizzi makes moves in P&C.