Everest Re reports net loss of $80.5m
Bermuda-based Everest Re reported a net loss of $80.5 million for the year, driven by catastrophe losses.
The loss compares to net income of $610.8 million in 2010.
Everest Re recorded $41 million net income for the fourth quarter of last year, compared to $302.5 million for the same period last year.
For the fourth quarter, the company’s after-tax operating loss was $50.7 million, or 94 cents per share, which exceeded estimates by analysts polled by Bloomberg, which estimated losses to be at 92 cents per share.
The company saw losses, including $218 million for the Thailand floods, increased reported loss estimates on the earthquakes in Japan and New Zealand that occurred earlier in the year, and made additional catastrophe reserve provision of $50 million for all 2011 events due to their complexity and the systemic late reporting that has resulted. For the full year, net after-tax catastrophe losses amounted to $959.7 million in 2011.
“While catastrophe losses have had a significant impact on our results this year, our balance sheet remains strong with capital still in excess of $6 billion, a testament to the strength of our franchise,” said chairman and CEO, Joseph Taranto.
Mr Taranto added the company had seen higher pricing at January renewals last month and has a positive outlook for the new year.
“This served us well during January renewals as we constructed a portfolio that enjoyed better rates and terms and, accordingly, we are optimistic about the prospects for 2012,” he said.
Everest Re wrote more business in 2011, with gross written premiums totalling $1.1 billion for the quarter, an increase of ten percent when compared to the same quarter in 2010. For 2011, gross written premiums totalled $4.3 billion, an increase of two percent compared to last year.
During the quarter, Everest Re repurchased approximately 105,000 of its common shares at an average price of $78.56 and a total cost of $8.3 million. For the year, the company repurchased 1.1 million of its common shares, or two percent of its total outstanding shares at year end 2010, for a total cost of $92.5 million.