Everest Re reports $0.6bn loss in Q3
Bermuda-based Everest Re reported a net loss of $639.4 million for the third quarter of 2017.
This compares to a net income of $295.4 million in the same period of 2016.
The third quarter 2017 results included catastrophe losses, net of reinstatement premiums, of $1.2 billion for hurricanes Harvey, Irma, Maria and the Mexico City earthquake. The net after-tax impact on earnings from these events was $897.7 million for the quarter.
The combined ratio for the quarter was 163.6 percent compared to 85.6 percent in the third quarter of 2016.
“This series of natural catastrophes highlights the nature of our business model,” CEO Dominic Addesso commented.
“We have consistently generated strong margins which gives us the financial ability to respond to these events, without impairment. We are proud to be part of an industry that provides financial security to its customers in times of need. Looking forward, market conditions are expected to be more favourable allowing the industry to continue on a sound footing. We should benefit to a greater degree given the strong underwriting fundamentals of our portfolio.”
Gross written premiums for the quarter were $2.0 billion, an increase of 15 percent compared to the third quarter of 2016. Worldwide, reinsurance premiums were up 25 percent, but adjusting for the high level of reinstatement premiums and the modest impact of foreign currency movements in the quarter, premiums in this division were up 13 percent. The growth in the reinsurance book is attributable to the new crop reinsurance program, growing premium from financial lines business, and increased shares on existing business. Insurance premiums were down 10 percent, quarter on quarter, but excluding the HCI crop business sold in 2016, premium was up 30 percent, with continued growth on new initiatives, according to the statement.
For the nine months ended September 30, 2017, Everest Re reported a net loss of $102.1 million compared to a net income of $622.8 million in the same period a year ago.
Get the latest re/insurance news sent to your inbox every day - Sign up to our free email newsletters
Other stories from Tuesday's AM newsletter
AIG hires general insurance CEO international from MetLife
Qatar Re Singapore CEO leaves, successor appointed
AIG rebrands tech unit acquired from Hamilton
CCRIF pays $7.0m to Trinidad & Tobago for excess rainfall
Liberty appoints senior war and terrorism underwriter from Sompo
Catalina takes over $190m US loss portfolio
