Everest Re Report Q1 Net Income Of $348.9M

May 8, 2019

Bermuda-based Everest Re Group, Ltd. reported first quarter 2019 net income of $348.9 million, or $8.54 per diluted common share, compared to net income of $210.3 million, or $5.11 per diluted common share for the first quarter of 2018.

After-tax operating income was $282.4 million, or $6.91 per diluted common share, for the first quarter of 2019, compared to after-tax operating income of $219.7 million, or $5.34 per common share, for the same period last year.

Commenting on the Company’s results, President and Chief Executive Officer Dominic J. Addesso said: “During the first quarter of 2019 Everest produced very strong financial results while continuing to expand our market profile with growth in both our reinsurance and insurance businesses.

“The Company delivered $8.54 of net income per diluted common share, equal to a 17% annualized return on equity, driven by both solid underwriting and investment returns. Our underwriting operations are strategically balanced between reinsurance and insurance, allowing us to quickly respond to market conditions across virtually all classes of business and territories in building the optimal portfolio of risks.”

Operating highlights for the first quarter of 2019 included the following:

  • Gross written premiums for the quarter were $2.1 billion, an increase of 10% compared to the first quarter of 2018. Worldwide reinsurance premiums were up 7% to $1.5 billion, with growth primarily driven by increased casualty and property pro-rata premium, increased shares on existing business and profitable new growth. Direct insurance premiums were up 18%, from first quarter 2018, to $595.1 million, continuing with the diversified growth trends noted in recent years.
  • The combined ratio was 88.7% for the quarter compared to 93.3% in the first quarter of 2018. Excluding catastrophe losses, reinstatement premiums and the favorable prior period loss development, the current quarter attritional combined ratio was 87.4% compared to 87.1% in the same period last year.
  • Current year catastrophe losses, net of reinsurance, amounted to $25 million in the quarter, related to the Townsville monsoon in Australia. There was no change in total prior year catastrophe loss estimates. Estimated net favorable prior year catastrophe development was offset by $24 million of adverse development on the third quarter 2018 Japan loss events.
  • Net investment income increased 1.9% for the quarter to $141.0 million.
  • Net after-tax realized capital gains amounted to $73.9 million for the quarter compared to realized capital losses of $19.4 million during the first quarter of 2018.
  • Cash flow from operations was $459.8 million compared to $195.6 million for the same period in 2018.
  • During the quarter, the Company purchased 75,193 shares at a total cost of $16.2 million. The repurchases were made pursuant to a share repurchase authorization, provided by the Company’s Board of Directors, under which there remains 1.4 million shares available.
  • Shareholders’ equity ended the quarter at $8.4 billion compared to $7.9 billion at year end 2018. Book value per share was up from $194.43 at December 31, 2018 to $206.68 at March 31, 2019.

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