Everest Re’s 2018 results hit by catastrophes but Addesso praises performance
Everest Re Group’s profits dipped in 2018 as a result of high levels of catastrophe losses during the year but the company’s CEO said he was pleased to still make a profit and praised the diversification of the company’s portfolio.
The company made a net profit of $103.6 million last year compared with $469.0 million a year earlier. Its combined ratio was 108.8 percent for the year, compared to 103.5 percent in 2017.
It said that excluding catastrophe losses, reinstatement premiums and the favorable prior period loss development, the combined ratio would have been 87 percent for the year, and 85 percent in 2017. In the fourth quarter alone, catastrophe losses, net of reinsurance and reinstatement premiums, amounted to $875 million in the quarter, primarily related to losses from Hurricane Michael, the California Camp and Woolsey wildfires and an Australia hailstorm event.
The company’s gross written premiums for the year increased to $8.4 billion compared with $7.1 billion in 2017. For the fourth quarter, GWP were $2.3 billion, an increase of 18 percent compared to the fourth quarter of 2017.
Its reinsurance segment alone, enjoyed positive growth its GWP rising to $6.2 billion for the year compared with $5.1 billion in 2017.
Dominic Addesso, president and chief executive of Everest Re, said: “During 2018 there were nearly $90 billion of insured industry losses, the fourth highest on record. Despite these events, Everest had both positive net income and operating income for the year. This result is testament to the diversification of our business across geographies, classes of business, and sources of capital. Everest’s long-term returns remain impressive, with 5 and 10 year average returns on equity still in excess of 10%.”
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