Everest Re Group Ltd has estimated that losses due to the Covid-19 pandemic will be about $76 million in the fourth quarter, that is the pre-tax net amount primarily relating to third-party lines

The group has also announced its preliminary financial results for the full year, and expects net income of $475 to $525 million, and operating income of $275 to $325 million.

Everest estimates pre-tax net catastrophe losses for the fourth quarter of $70 million, net of reinsurance and reinstatement premiums. The estimate includes the impact of hurricanes Delta, Zeta, Eta, Iota, and a hailstorm in Queensland, Australia.

The company said that after a comprehensive annual review of all reinsurance and insurance reserves, it is increasing prior year loss reserves by $400 million. The amount is equal to 3 per cent of net loss reserves as of September 30.

Juan Andrade, Everest Re Group president and chief executive officer, said: “We remain focused on the relentless execution of our strategies to create a diversified portfolio that achieves superior risk adjusted returns and value to our shareholders and customers. The decisive reserving actions we are announcing today recognise the social inflation trends affecting the overall US casualty market and enhance our already strong balance sheet. We have proactively acted on the affected portfolios and we have confidence in our in-force book. We are bullish about our future and the earnings generating power of our franchise.

“Everest continues to benefit from excellent financial strength and strong enterprise risk management. The fundamentals of our business are strong. Our company is well positioned to succeed in any market conditions, as evidenced by our growth and our improved underlying results despite the many global challenges in 2020. Our strong management team, employees, global platform, and excellent capabilities continue to provide superior solutions to our business partners and customers.”

Everest’s quarterly and full year earnings will be released on February 8.