Everest Re profits fall in 2015; reports top line growth

Everest Re has posted a fall in its 2015 profits to $977.9 million, compared to $1.2 billion in 2014.

The re/insurance underwriter also reported a slight increase in its combined ratio in 2015 to 83.4 percent, compared to 82.8 percent it 2014.

Contributing to the fall in net income is an increase in Everest Re’s incurred losses and loss adjustment expenses last year, increasing to $3.1 billion, compared with $2.9 billion in 2014. Its net realised capital losses also increased to $102.2 million, compared with $39.5 million in 2014.

Everest Re did report a 2 percent increase in its gross written premiums for last year however, to $5.9 billion. Eliminating the unfavourable effects of foreign currency fluctuations, total premiums were actually up 5 percent for the year, said the firm and worldwide reinsurance premiums, including the Mt Logan Re segment, were essentially flat, on a constant dollar basis, while direct insurance premiums were up 26 percent for the year.

Dominic Addesso, president and chief executive officer, Everest Re, said: “While the market remains challenging, Everest continues to generate superior results with an underwriting combined ratio of 83.4 percent and an operating return on equity of 15 percent for the year.

“This is an impressive result considering the volatility in our financial markets. We remain focused on increasing value for our shareholders as we continue building out the Everest franchise.”