Everest Re Improves Results With Premium Hikes and Investment Income

Everest Re Group reported a successful 2019 fourth quarter and year, driven largely by gains in insurance premiums and investment income.

The Bermuda-based insurer and reinsurer reported $217.6 million in net income during the quarter, or $5.32 per share, versus a net loss of $385.3 million, or negative $9.58 per common share, in the 2018 fourth quarter. Everest Re Group booked $1 billion in net income for all of 2019 compared with $89 million in 2018.

Everest Re President and CEO Juan Andrade said that Everest’s 2019 income was its best result since 2014.

That said, the company’s combined ratio for Q4 was 101.5, though it is an improvement compared to the 134.1 generated over the same period in 2019. For the year, Everest’s combined ratio reached 95.5 versus 108.8 the previous year.

“These numbers speak to the strength of our business and the strength of our underwriting and investment operations,” Andrade said in prepared remarks.

Everest Re’s result highlights:

• Gross written premiums for Q4 reached $2.4 billion, 7 percent higher than in the 2018 fourth quarter. Of that number, reinsurance premiums grew 4 percent, excluding the impact of reinstatement premiums. Insurance premiums grew 30 percent to $758.7 million.
• Net premiums earned were $1.9 billion in Q4 2019, up from $1.85 billion a year ago.
• Catastrophe losses in Q4 reached $215 million, net of reinsurance and reinstatement premiums, due to losses from Japanese Typhoon Hagibis and tornadoes in Dallas, Texas.
• Q4 net investment income was at $146 million versus $140.2 million in the 2018 fourth quarter.
• For the year, Everest produced $9.1 billion in gross written premiums, 8 percent higher than in 2018. Reinsurance premiums grew 2 percent, and insurance premiums climbed 23 percent.
• Catastrophe losses hit approximately $550 million in 2019 from events including Hurricane Dorian and Japanese Typhoons Faxai and Hagibis.
• Net investment income for 2019 was $647 million, an 11 percent increase over 2018.

Source: Everest Re