Hurricane Dorian and Typhoon Faxai chipped away at Everest Re Group’s 2019 third-quarter net income, knocking it nearly in half from the previous year.
The Bermuda-based insurer and reinsurer booked $104.4 million in net income, or $2.56 per diluted common share, for Q3 2019. That compares to $198.4 million in net income, or $4.84 per diluted common share, for Q3 2018.
Everest Re President and CEO Dominic Addesso said that a diverse business mix has helped it continue to be successful despite catastrophe losses.
“Everest’s mix of business between reinsurance and insurance, supported by robust investment income, results in a strategic balance that has contributed to our longevity and success over many years,” Addesso said in prepared remarks.
Everest Re reported a 101.4 combined ratio for the quarter versus a 100 combined ratio in the 2018 third quarter. The number spiked due to $280 million in catastrophe losses, net of reinsurance and reinstatement premiums, from Q3 2019 expenses stemming from Hurricane Dorian and Typhoon Faxai, the company said.
The company produced $181.1 million in net investment income during the quarter, up 12 percent from the same period a year ago.
Other result highlights:
- Consolidated premiums earned surpassed $1.9 billion from the quarter, up from $1.7 billion in the 2018 third quarter.
- Gross written premiums came in at $2.4 billion, up 9 percent from the 2018 third quarter.
- Direct insurance premiums grew to $666.6 million, up nearly 30 percent from the same, year-ago period.
- Global reinsurance premiums came in at $1.7 billion for Q3 2019, a 3 percent increase from Q3 2018.
Source: Everest Re