Specialising in niche markets has been a key component to Everest Re’s successful third quarter results, according to chairman and CEO Joe Taranto.

Mr. Taranto outlined the case for his company’s lack of exposure in areas such as small premium items and highly specialised niche business in a marketplace of increased competition during a post-results conference call.

It followed the Bermuda-based company’s third quarter results which showed a profit increase of just under $1 million to $246.6 million.

Craig Eisenacher, chief financial officer, meanwhile, declared his pleasure at the firm’s strong capital performance.

“We are generating very strong earnings,” he said.

“I think we signalled earlier in the year that we really didn’t plan to be active in the third quarter in the market, just because we are in the midst of the US hurricane season and we, I think, indicated, wanted to husband our capital through that.

“We are probably in the best financial situation we have ever been in, our capital position is really strong, so we can continue these activities.”

Mr. Taranto said that, despite fierce competition in the US casualty insurance market, Everest Re was benefiting from having interests in smaller, more specialist sectors.

“Looking at the marketplace today - its a mixed bag, we certainly are seeing more competition in the US casualty business and that’s most impacting insurance rates - I would say reinsurers have been pretty disciplined about resisting some of the changes that have taken place and avoiding business and within the US casualty world most of the competition were are seeing is on tougher business, big premium items, like medical malpractice, like huge product liability cases, contractor liability and that’s the part of our insurance book, I think, that has been most impacted,” he said.

“Now a big part of our insurance book is really small premium items and highly specialised niche business like landscaper liability and security guard liability and that is much less impacted at this stage and think will be much less impacted going forward.

“Property cat rates have held pretty well - we’ll see what happens this January.”