Texas wind storms set to weigh on Q1 results for Everest

Everest Re Group has warned its first quarter 2021 results will be impacted by catastrophe losses related to winter wind storms.

Everest predicted pre-tax net catastrophe losses for Q1 2021 will amount to around $260 million. Of that, around $213 million is in Everest’s reinsurance segment.

Texas winter storms account for the vast majority of the loss, amounting to around $250 million overall, and $203 million in the reinsurance segment specifically. These figures are net of reinsurance recoveries and reinstatement premiums.

The remaining $10 million loss came from flooding in New South Wales, Australia.

Everest estimates total insured industry losses related to the Texas winter storms of approximately $15 billion.

Everest did not disclose a new estimate for its COVID-19 pandemic loss. To date, its total pandemic loss provision is $511 million, of which approximately 80 percent remains as incurred but not reported.

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