Everest Re Group has reported a combined ratio of 101.4% for the third quarter, up from 100% for the same period in 2018, as Hurricane Dorian and Typhoon Faxai took their toll.
There were $280 million of current year catastrophe losses, net of reinsurance and reinstatement premiums, incurred in the third quarter of 2019 which were related to Hurricane Dorian and Typhoon Faxai. Net income fell to $104.4 million, from $198.4 million. Investment income has helped to compensate for insurance losses. Net investment income rose 12 percent to $181.1 million
President and chief executive Dominic J. Addesso said: “Everest generated an impressive 13 percent annualized net income return on equity for the 9 months year to date. Our business and balance sheet are built to provide meaningful protection for our clients, as was the case this quarter with the previously announced catastrophe losses from Hurricane Dorian and Typhoon Faxai. Everest’s mix of business between reinsurance and insurance, supported by robust investment income, results in a strategic balance that has contributed to our longevity and success over many years.”
Gross written premiums for the quarter were $2.4 billion, up 9 percent on a year earlier. Direct insurance premiums were up 29 percent, at $666.6 million, continuing with the diversified growth trends noted in recent years. Worldwide reinsurance premiums increased 3 percent to $1.7 billion.
Everest Re, Results, Catastrophe, Hurricanes, Typhoons, Dominic J. Addesso, North America