Everest book value tops $100 as profits soar on increased revenue
Everest Re's profits soared to $228.6 million for the third quarter, driven by strong operating income and a recovery in the financial markets.
The reinsurer, which logged a net loss of $233.1 million or $3.79 per share for the same period in 2008, saw its gross premiums rise 13 percent to $1.1 billion for the third quarter of 2009 compared to $999.2 million last year.
After-tax operating income, excluding realised capital gains and losses, was $209.4 million or $3.43 per share for the quarter, versus $12.6 million, or 20 cents per share a year earlier.
Joseph Taranto, chairman and CEO of Everest, said: "We have achieved yet another milestone in Everest's history with shareholders' equity topping more than $6 billion at quarter end. Book value per share has increased 25 percent, since the beginning of the year, benefiting from strong earnings and the financial market recovery to date. These results are a testament to the discipline and strength of the organisation."
Worldwide reinsurance premiums increased 12 percent, but adjusting for foreign exchange grew approximately 13 percent. Insurance premiums, which are entirely derived from the US markets, were up 19 percent.
This growth was driven by a strong US reinsurance property market, particularly for catastrophe exposed regions, the continued expansion of business in various international reinsurance markets and new programme development on the insurance book.
The company's GAAP loss and combined ratios were 60.2 percent and 88.7 percent, respectively for the quarter, compared to 87.3 percent and 115 percent in the third quarter of 2008.
Net investment income was $165.4 million, relatively flat compared to the third quarter of 2008, with limited partnership income adding $23.5 million for the quarter due in large part to income from partnerships investing in public equities.
Shareholders' equity ended the quarter at $6.1 billion, up 23 percent from year-end 2008. Accordingly, book value per share increased 25 percent to $100.75 as of September 30, 2009 from $80.77 at year-end 2008.
