Everest Re’s Andrade hails Q3 results as premiums and profits surge

Everest Re Group’s CEO praised the firm’s third quarter 2020 results that included an impressive 16 percent growth in gross written premium and rise in profits. Juan Andrade said the reinsurer is benefitting from the improving market conditions and "a flight to quality".

Gross written premium for the third quarter grew by 16 percent year on year. The reinsurance segment saw GWP of $2.1 billion, a 20 percent increase over the same period in 2019. While the insurance segment saw a 6 percent increase over the prior year period, reaching GWP of $705 million.

Everest Re attributed the growth to continued rate acceleration, new business opportunities and increased share with existing customers.

The company made a net profit of $243.1 million in Q3 2020, compared to $104.4 million in the three months ended September 30, 2019.

It reported pre-tax catastrophe losses of $300 million, net of reinsurance and reinstatement premiums, and $125 million of net pre-tax losses related to the pandemic.

Excluding the catastrophe and COVID-19 pandemic losses, Everest reported an attritional combined ratio of 85.8 percent, down from 87.1 percent in the same period of 2019.

The reinsurance segment reported a combined ratio of 105.4 percent, including catastrophe losses of 16.3 percent and pandemic losses of 6.7 percent.

The insurance segment posted a combined ratio of 104.5 percent, including catastrophe losses of 7 percent and pandemic losses of 3.4 percent.

Andrade said: “Everest is benefitting from a flight to quality and strength in the reinsurance and insurance markets. This is an underwriter’s market. Our broadly diversified reinsurance and insurance franchises, our financial strength, deep distribution relationships, and our focus on providing solutions to our customers position us well for this environment.”