Everest Re profits nosedive 71% in Q4 but remains 'resilient'
Bermuda-based Everest Re's profits more than halved in both the fourth quarter and full-year of 2020, driven by catastrophe and pandemic-related losses in both insurance and reinsurance segments. Its chief executive Juan Andrade, however, insisted the business remains resilient and enters 2021 with "great momentum".
The re/insurer reported net profit of $514 million for 2020, down from $1.0 billion in 2019. For Q4 2020 it reported net profit of $63.6 million, down 71 percent from $217.6 million in the same period of the previous year.
Gross written premiums for 2020 were $10.48 billion, up 15.5 percent from $9.13 billion in 2019. For Q4, Everest grew its gross written premiums by 13 percent to $2.76 billion, compared with $2.44 billion in Q4 2019.
Its combined ratio deteriorated to 102.9 percent for full-year 2020, from 95.5 percent the previous year. In Q4 2020, the combined ratio was 109.1 percent, compared to 101.5 percent in Q4 2019. Everest said this was due to the impact of catastrophe and COVID-19 pandemic losses in both insurance and reinsurance segments.
The company noted that its reinsurance segment achieved strong growth with gross written premiums up 12 percent for the quarter and 15 percent for the year, driven by new business opportunities and rate improvement.
Its insurance segment also posted gross written premiums growth of 15 percent for both the quarter and full-year 2020.
Everest Re's president and CEO Andrade highlighted the group’s strong capital position, which has been bolstered by an offering of $1 billion of senior notes, insisting the business enters 2021 with "great momentum".
He said: "We are relentlessly executing our strategies from a position of strength in this robust market, as evidenced by 2020 growth in gross written premiums of 15 percent. [...] Everest’s investment income remained resilient at $642 million despite the Pandemic’s impact on financial markets and the sharp decline in interest rates."
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