Everest Re operating income beats estimates
Everest Re Group Ltd’s after-tax operating income in the third-quarter was $138.4 million, or $3.39 per share, which beat analysts’ estimates of $2.21.
However, its net profit was almost halved, at $104.4 million, compared to $198.4 million a year ago. That was $2.56 per diluted common share, down from $4.84 year-on-year.
The Bermudian-based insurer and reinsurer’s combined ratio worsened, rising from 100 per cent to 101.4 per cent.
Everest’s third-quarter results were impacted by $280 million of current year catastrophe losses, net of reinsurance and reinstatement premiums, related to Hurricane Dorian and Typhoon Faxai.
Dominic Addesso, president and chief executive officer of Everest Re, said: “Everest generated an impressive 13 per cent annualised net income return on equity for the nine months year-to-date. Our business and balance sheet are built to provide meaningful protection for our clients, as was the case this quarter with the previously announced catastrophe losses from Hurricane Dorian and Typhoon Faxai.”
He added: “Everest’s mix of business between reinsurance and insurance, supported by robust investment income, results in a strategic balance that has contributed to our longevity and success over many years.”
Gross written premiums for the quarter were $2.4 billion, an increase of 9 per cent compared to the third-quarter of 2018.
Direct insurance premiums were up 29 per cent, from the third-quarter 2018, to $666.6 million.
Worldwide reinsurance premiums increased 3 per cent to $1.7 billion for the quarter, compared to a year ago.
Net investment income increased 12 per cent to $181.1 million.
Book value per share was up from $193.37 at December 31, 2018 to $220.28 at September 30.
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