Everest Re profits nosedive 95% in Q1 but remains 'resilient'

Bermuda-based global re/insurer  Everest Re Group saw a 95 percent decline in its profits in the first quarter of 2020, mainly attributed to losses related to COVID-19. Despite the impacts of the pandemic, the company still managed to deliver a small profit.

Everest Re's net income was $16.6 million, compared with net income of $354.6 million in the first quarter of 2019, reflecting a huge decline of nearly 95 percent.

The company wrote nearly $2.6 billion in gross written premiums for the quarter, an increase of 21 percent as compared to a year ago.

Everest's reinsurance segment grew 16 percent while the insurance segment was up 33 percent.

The re/insurer's combined ratio for the quarter was 98.6 percent, which includes $150 million in net pre-tax IBNR losses related to the COVID-19 pandemic. The IBNR loss is attributed $110 million to reinsurance and $40 million to insurance.

Juan Andrade, president and chief executive officer of the company said: “Our capital position remains a source of strength, with high quality invested assets, significant liquidity and low financial leverage. Our well-diversified investment portfolio is resilient, and we have taken additional steps to reposition it by moving up in credit quality and further reducing equity exposure."

He added: "Above all it is the ingenuity, perseverance and dedication of our employees during these unique times that allows us to operate our business without interruption. Despite the impacts of the pandemic, Everest remains profitable and resilient with a strong capital base.”