Everest Re Dips to 1st Q Loss on Chile Quake
Bermuda-based Everest Re Group Ltd. reported a net loss of $22.7 million after the reinsurer was hit by losses tied to the Chile earthquake and European windstorm.
Catastrophe losses were a record $275.6 million, after the company warned last month it expected losses exceeding $200 million from the Chile quake and the European windstorm Xynthia. Everest CEO stated the events had “significant impact on the quarterly results.”
The net loss of $22.7 or $0.38 per common share, for the first quarter 2010, compares to a net income of $108.6 million, or $1.76 per diluted common share, for the first quarter of 2009.
The after-tax operating loss which excludes realized capital gains and losses, was $73.8 million, or $1.25 per common share, for the first quarter 2010, compared to after-tax operating income of $106.1 million, or $1.72 per diluted common share, for the same period last year.
While there has been no change to the announced loss estimates for these events, additional catastrophe losses in the quarter, specifically the Australian storms in Melbourne and Perth, further contributed to these losses. Overall, catastrophe losses, net of reinstatement premiums and taxes, were $275.6 million, or $4.66 per common share, during the quarter.
Chairman and Chief Executive Officer Joseph V. Taranto said:
As an industry, we experienced record catastrophe losses in the first quarter compared to the same period in any other year. While this had a significant impact on the quarterly results, our return to shareholders, including dividends paid, was slightly positive, attesting to the overall strength of our organization.
Other 2010 first quarter results of Bermuda based companies here.
