Everest Re CEO highlights 'strong forward momentum' after H1 profit plunges

Bermuda-based Everest Re's first half net profit more than halved in 2020, but remains optimistic on its "more than ample capital" to take advantage of the "strong forward momentum" across both its insurance and reinsurance segments.

The re/insurer said it enjoyed a "solid" second quarter and first half of 2020 results, despite the current challenges.

Everest reported a net profit of $190.9 million in Q2 2020, compared with $332.9 million in the same period of 2019. For the first six months of the year, it made a profit of $207.5 million, a 70 percent decline from $687.4 million in the same period of 2019.

The company reported gross written premium of $2.4 billion for Q2, up 9.4 percent compared to the same period of 2019. Its reinsurance segment grew 9.1 percent while the insurance segment was up 9.8 percent.

Everest's combined ratio was 97.5 percent for Q2, comprising 95.4 percent for the reinsurance segment and 103.4 percent for the insurance segment. The attritional combined ratio excluding the pandemic impacts improved to 88.5 percent, compared to 88.6 percent in Q2 2019.

The results include $160 million in net pre-tax losses related to the COVID-19 Pandemic, attributed $130 million to reinsurance and $30 million to insurance. The company also recorded $15 million of catastrophe losses from civil unrest in the US.

Everest Re Group president & CEO Juan Andrade, said: “Despite the current challenging and uncertain public health, economic, and social environment, Everest reported another solid quarter and first half of 2020 results. Our ability to successfully leverage our capital position, our global platform, and our success in executing against our objectives - even under adverse conditions - drive our results. Our people continue to demonstrate the passion and resilience to differentiate Everest and deliver value to our customers. We have strong forward momentum across our Reinsurance and Insurance Segments."

He added: "In Reinsurance, we continue to see excellent opportunities in several areas such as facultative risk, property and in certain territories including the US, Canada, Latin America and Asia, with an overall environment that gives us the opportunity to better shape our book towards deals with much better terms and pricing. In Insurance, the main growth drivers were continued strength in the Excess & Surplus business, strong and widespread rate momentum (excluding workers compensation up 18% and up over 12% including workers compensation) and high renewal retention across all of our businesses."

"Our balance sheet and capital position remain a fundamental source of strength for Everest," Andrade concluded. "This quarter reported record shareholder’s equity of $9.3 billion; combined with our low financial leverage and top tier ratings we have more than ample capital to take advantage of current and future opportunities in the global reinsurance and insurance market.”