Everest expects to report Q4 catastrophe losses of $215m

Global re/insurer Everest Re Group expects to report 2019 Q4 catastrophe losses of $215 million, comprising Typhoon Hagibis losses of $190 million and tornado losses in Dallas, Texas of $25 million.

Also contributing to the fourth quarter 2019 results are higher than normal current year losses in the reinsurance crop book related to poor weather conditions in the US and Canada, negatively impacting underwriting income in the amount of about $50 million; net favourable prior year reserve development of $19 million; and net investment income of about $146 million, including lower limited partnership income of $6 million.

For the full year 2019, Everest said it expects to report about $1 billion of net income, resulting in a net income return on equity of 12 percent. The company continued to see strong rate improvement in most classes of insurance and reinsurance during the fourth quarter of 2019 and at the important January 1 renewal date.

Full results for the quarter and 2019 year will be released on February 10, 2020.