A Hold recommendation has recently been issued to insurance company Everest Re Ltd. (RE) by Zacks service sector analyst Eric Rothmann. Here's what his latest update had to say:

'RE reported 3Q07 results of $3.68 per share, versus $3.68 per share in the year-ago quarter. Financial results came in well above our expectations, stemming from lower-than-anticipated incurred losses and loss adjustment expenses.

'Currently the shares of Everest Re trade at 1.20x its 3Q07 book value of $89.33 per share. RE's valuation has moderated from the 1.5x level exhibited a little over a year ago, as Everest's 5-year average ROE is currently below the peer group average. Prior to the conference call, we have adjusted our 2007 earnings expectation to $14.42 per share from $13.81 per share to reflect 2Q07 results, but maintained our 2008 earnings expectation at $12.80 per share.

'Our new six-month price target is $118.00 per share, up from $112.50 per share, which incorporates a slightly below peer multiple of 1.25x (driven by top-line growth concerns and the potential for additional catastrophe losses by the end of this year), to our estimated March 31, 2008 book value of $94.00 per share. While we are maintaining our Hold rating on the shares of Everest Re, we increased our 2007 earnings expectation to reflect 3Q07 results.'