Everest Re Group reports $342m profit
Bermudian-based Everest Re Group Ltd has reported net income of $342 million, equal to $8.52 per share, for the first quarter.
The company reported net operating income of $260 million, equal to $6.49 per share.
The attritional combined ratio was 87.3 per cent, a 2.5-point improvement year-over-year.
The company reported underwriting income of $45 million inclusive of pre-tax net catastrophe losses of $270 million, $260 million net of reinstatement premiums.
Everest reported no change to its Covid-19 pandemic loss provision.
The company had a combined ratio of 98.1 per cent, and operating cashflow of $904 million for the quarter.
Everest said its reinsurance segment achieved strong growth with gross written premiums up 16 per cent for the quarter, driven by a successful January 1 renewal season. The targeted and disciplined growth was driven by rate, increased shares on profitable deals, and new opportunities in property, casualty, specialty lines, and facultative business, the company said.
Everest said the April renewal season was successfully completed with the reinsurance segment capturing rate increases on Japanese and retrocessional business and pro-rata business benefiting from primary rate improvement.
The company said its insurance segment achieved strong growth with gross written premiums up 10 per cent for the quarter – 20 per cent excluding worker’s compensation – with notable growth in specialty casualty, property/short-tail and professional liability classes of business, offset by reductions in workers’ compensation as the company said it purposely sought growth in lines with more attractive pricing.
Everest reported continued strong rate growth in excess of trend with renewal rate increases of 16 per cent in the quarter excluding workers compensation, and up 10 per cent including workers compensation.
The company had net investment income of $260.4 million for the quarter including alternative investment gains of $120.3 million.
Everest had total invested assets and cash of $25.9 billion at March 31, 1.9 per cent growth versus year-end 2020.
Shareholders’ equity remained flat at $9.7 billion as of March 31, versus year-end 2020.
Book value per diluted share was $241.57 at March 31.
Juan C. Andrade, Everest Re Group president and CEO, said: “Firstly, our thoughts are with those impacted by the US winter storms and the flooding in Australia. I am very proud of the work our claims team is doing on the ground to help those affected rebuild their lives.
“Everest had a strong start to 2021 with robust growth, strong overall profitability, continued improvement in attritional underwriting margins, and excellent investment performance.
“Our first quarter results further illustrate the earnings power of Everest and our success in implementing our strategy to build a broadly diversified company with a relentless focus on strong operational performance and disciplined underwriting.”