Everest Re claims ‘excellent’ Q2 2017 results

Bermuda-based Everest Re has reported that it made a profit of $245.7 million for the second quarter of 2017, a marked improvement on the $155.7 million it made in the same period of 2016.

The second quarter results take the company to a first half 2017 profit of $537.3 million, again an improvement on the first half 2016 figure of $327.4 million.

Everest Re said that gross written premiums for the quarter were $1.6 billion, an increase of 17 percent compared to the second quarter of 2016. Worldwide, reinsurance premiums were up 14 percent, with growth coming from the new crop reinsurance program, increased shares on property pro-rata treaties, and growth in financial lines business.

Insurance premiums were up 25 percent, quarter over quarter, with continued growth on new initiatives. According to the company excluding the HCI crop business that was sold in 2016, the insurance segment premium was up 41 percent, quarter over quarter.

Net investment income over the first half of 2017 remained relatively steady, at $256.8 million, up on the $235.3 million it made in the first six months of 2016.

The company said that catastrophe losses, net of reinsurance, amounted to $53.5 million in the quarter, with current quarter catastrophe losses from the South African (Knysna) fires, Colorado hailstorms, and Peru flooding. The net impact of these losses, after reinstatement premiums and taxes was $46.6 million.

“Everest continues to generate double digit ROE’s, while steadily growing its capital base,” said Dominic Addesso, president and CEO. “Strong underwriting results, with an attritional combined ratio of 86.7 percent for the quarter, coupled with stable investment income are providing for solid growth in book value per share. We seek out opportunities for profitable growth in both our reinsurance and insurance books and have been successful as borne out by these excellent results.”

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