Everest Re Group Ltd. expects nearly $700 million in catastrophe losses for the 2018 fourth quarter due to wildfires, a hurricane and a hailstorm.

Everest’s prediction of $695 million in catastrophe losses is net of reinsurance, reinstatement premiums and taxes. Everest Re said the costs stemmed from Hurricane Michael, which affected Florida and other Southeastern states, California’s Camp and Woolsey wildfires, and the December hailstorm event in Australia.

Overall, Everest sees industry losses from these events potentially approaching $30 billion. Everest said the impact is primarily with its reinsurance operations, and as such is dependent upon the loss reporting from ceding insurers across many underlying insurance policies.

Dom Addesso, Everest Re’s president and chief executive officer, said in prepared remarks that the losses “reflect another year in which there has been an extraordinary level of industry catastrophes and are reflective of our market share.”

He said Everest can handle the cost and client needs stemming from the events, as it has “$8 billion in shareholders equity and over 40 years of experience.”

Everest Re plans to hold its Q4 2018 earnings conference call on Tuesday, Feb. 12, 2019.

Source: Everest Re

Topics Catastrophe Profit Loss