Everest Re Post 2014 Q1 Net Income: $293.9M
Bermuda-based Everest Re Group, Ltd. reported net income of $293.9 million, or $6.21 per diluted common share, for the first quarter of 2014, compared to net income of $384.3 million, or $7.50 per diluted common share, for the first quarter of 2013.
Excluding realized capital gains and losses, after-tax operating income1 was $281.0 million, or $5.93 per diluted common share, for the first quarter 2014, compared to after-tax operating income1 of $301.1 million, or $5.88 per diluted common share, for the same period last year.
Commenting on the Company’s results, President and Chief Executive Officer, Dominic J. Addesso said, “Everest had another excellent quarter producing $281 million of after-tax operating income and a net income return on equity of 17%, driven by strong underwriting results with a combined ratio of 80.0%. The market is always challenging but we are continuing to find opportunities to grow premium and risk-adjusted returns, demonstrating the strength of our franchise and operating strategies.
We expect to close shortly on our first catastrophe bonds that will provide $450 million of property catastrophe risk coverage at very optimal pricing and terms and conditions. Alternative reinsurance capacity is increasingly part of our strategy, coming into play both offensively and defensively, as we seek ways to optimize our returns.”
Addesso continued, “During the quarter, we repurchased $250 million of our common shares and paid dividends of $35 million, the largest return of capital to shareholders in any single quarter, and yet shareholders equity held constant at $7 billion. We continue to build value for our shareholders with book value per share, adjusted for dividends, climbing 5% in the quarter.”
