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Record Q1 underwriting results for Everest

Everest president and chief executive officer Juan Andrade (File photograph)

The Everest Group is reporting strong first quarter 2024 results that include record underwriting income and record net investment income.

The results also highlight $85 million of pre-tax catastrophe losses net of recoveries and reinstatement premiums, primarily driven by the Francis Scott Key Bridge collapse in Baltimore, versus $110 million in the prior year.

Net income for the quarter was $733 million and operating income was $709 million.

“Everest had a strong start to 2024, with first-quarter results delivering significant profitability across all key metrics, including a total shareholder return in excess of 18 per cent and an operating return on equity of 20 per cent,” said Juan C. Andrade, Everest president and chief executive.

“Group underwriting income increased 50 per cent over the prior year to a quarterly record of $409 million with a combined ratio of 88.8 per cent, driven by both of our underwriting franchises.

“Our reinsurance business continued to differentiate Everest during another outstanding January 1 renewal as the flight to quality accelerated.

“We gained market share with targeted clients, positioning the portfolio for attractive levels of profitability.

“In our insurance division, we advanced our disciplined expansion across global markets, while remaining focused on prudent risk selection and the bottom line.

“Additionally, our investment portfolio contributed a record $457 million in net investment income. With strong momentum across our underwriting businesses, we are executing on our three-year strategic plan, focused on generating consistent, industry leading financial returns.”

All told, the company had $4.4 billion in gross written premium with year-over-year growth of 17.2 for the group, 20.4 per cent for reinsurance, and 9.8 per cent for insurance.

Combined ratios were 88.8 per cent for the group, 87.3 per cent for reinsurance and 93.1 per cent for insurance.

Gross written premiums for the reinsurance segment grew 20.4 per cent on a constant dollar basis and excluding reinstatement premiums, to approximately $3.2 billion.

The company said the growth was broad-based across geographies and lines.

Combined ratio improved 350 basis points over the last year to 87.3 per cent.

The company said risk-adjusted returns remained very attractive, particularly in property and specialty lines.

For the insurance segment, gross written premiums rose to $1.2 billion, a 9.8 per cent increase year-over-year in constant dollars, driven by a diversified mix of property and specialty lines, partially offset by lower written premiums in monoline workers' compensation and financial lines.

Loss ratio improved 10 basis points over last year to 64.5 per cent, while the attritional loss ratio improved 40 basis points over last year to 64.0 per cent.

Pre-tax catastrophe losses were $5 million, net of estimated recoveries and reinstatement premiums, relatively in-line with the prior year.

The company said that pricing continued to exceed loss trend overall and loss trend was stable. There was a meaningful acceleration in pricing across longtail lines (excluding financial lines).

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Published April 30, 2024 at 9:49 am (Updated April 30, 2024 at 9:38 pm)

Record Q1 underwriting results for Everest

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