Everest Re Group’s 2017 First Quarter Results
Bermuda-based Everest Re Group, Ltd. reported first quarter 2017 net income available to common shareholders of $291.6 million, or $7.07 per diluted common share, compared to net income of $171.7 million, or $4.00 per diluted common share for the first quarter of 2016.
After-tax operating income1 available to common shareholders was $259.5 million, or $6.29 per diluted common share, for the first quarter of 2017 compared to after-tax operating income¹ of $222.7 million, or $5.19 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, “We are starting out 2017 with a very strong quarter – providing a 13% operating return on equity and a 77% increase in net income earnings per share. We continue to see strong momentum across our underwriting operations, with opportunities in both reinsurance and insurance.
“This growth is not coming at the expense of margin as we hold fast to our underwriting principals, which are focused on sustained profitability regardless of the market cycle. This strategy coupled with the returns we are achieving on our growing investment portfolio are providing for the strong results we saw in the quarter.”
Operating highlights for the first quarter of 2017 included the following:
- Gross written premiums for the quarter were $1.6 billion, an increase of 18% compared to the first quarter of 2016 with minimal impact from foreign currency fluctuations. Worldwide reinsurance premiums were up 19% to $1.2 billion, primarily due to the new crop reinsurance transaction and growth in financial lines premium. Direct insurance premiums were up 15% to $434 million, quarter over quarter, consistent with the growth trends noted in 2016.
- The combined ratio was 86.0% for the quarter, in line with the first quarter of 2016. Excluding catastrophe losses in the quarter from the Australian windstorm, Cyclone Debbie, and prior year development, the attritional combined ratio improved to 84.5% from 85.3% reported in the same period last year.
- Net investment income increased 19% for the quarter to $122.3 million.
- Net after-tax realized and unrealized capital gains amounted to $32.1 million and $17.3 million, respectively.
- Cash flow from operations was $381.8 million compared to $375.5 million for the same period in 2016.
- For the quarter, the annualized after-tax operating income¹ return on average adjusted shareholders’ equity² was 12.8%.
- Shareholders’ equity ended the quarter at $8.3 billion, up 3% compared to year end 2016. Book value per share also increased 3% from $197.45 at December 31, 2016 to $203.32 at March 31, 2017.
