Insurer Everest Group slides after Q3 profit miss

Insurer Everest Group's EG.N shares slide 9.2% to $312.36

Late Monday, EG reported Q3 profit below Wall Street expectations as it took a $478 million reserve charge

Co also announced deal to sell retail commercial insurance renewal rights to AIG AIG.N to sharpen its focus on its core reinsurance business, while securing a $1.2 billion adverse development reinsurance cover with Longtail Re

"We don't believe Everest's effective exit from retail insurance will immediately restore credibility to management, but it begins the process of both settling the company's strategy and narrowing the range of financial outcomes," says Citi analyst Matthew Heimermann

"We view the transactions as necessary and ultimately for the greater good" - Morgan Stanley

As of last close, EG stock down 5.1% YTD