Everest Anticipates $80M Catastrophe Loss
Bermuda-based Everest Re Group, Ltd. announced yesterday [Jul. 6] that it expects to incur net catastrophe losses of $80 million, after reinstatement premiums and taxes. This estimate is based on an effective tax rate of 20 percent.
Joseph V. Taranto, Chairman and Chief Executive Officer, stated, “Despite these losses, we expect to have an underwriting profit in the quarter and a solid increase in our already strong capital position.”
This estimate provides for events that occurred during the second quarter, primarily the severe weather that impacted large areas within the US during April and May and the wildfires in Alberta, Canada.
In addition, the estimate reflects updated loss provisions for the first quarter catastrophe losses.
The company currently anticipates that losses related to the most recent New Zealand earthquake will be less than $10 million and therefore would not be reported as part of its current catastrophe loss provision. Events with expected losses below this threshold are included as part of the company’s attritional losses.
The company’s loss estimate is based on a combination of modeled information, industry loss assessments, underwriter analysis, client discussions, and a profile of exposed limits within the affected region.
Actual losses could differ, perhaps materially, from these estimates due to the inherent uncertainties in making these determinations.
Everest Re Group, Ltd. is a Bermuda holding company that operates through subsidiaries which provides re/insurance to property and casualty, life and non-life insurers in both the US and international markets.
