Everest Re Group’s 2018 First Quarter Results

April 28, 2018

Bermuda-based Everest Re Group, Ltd. reported first quarter 2018 net income of $210.3 million, or $5.11 per diluted common share, compared to net income of $291.6 million, or $7.07 per diluted common share for the first quarter of 2017.

After-tax operating income1 was $219.7 million, or $5.34 per diluted common share, for the first quarter of 2018, compared to after-tax operating income of $267.1 million, or $6.48 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 continues to deliver a solid performance with double digit returns on equity.

“Our diversified growth strategies, with premium up 21%, continue to provide balance and stability to the overall portfolio. In fact, excluding catastrophe losses, our net operating income was up 5% and underwriting income was above $200 million. We are pleased with our overall results and believe they once again demonstrate the strength of the Everest franchise.”

Operating highlights for the first quarter of 2018 included the following:

  • Gross written premiums for the quarter were $1.9 billion, an increase of 21% compared to the first quarter of 2017. On a constant dollar basis, premium was up 19%, quarter over quarter. Worldwide reinsurance premiums were up 22% to $1.4 billion, with growth across each segment primarily driven by increased pro-rata premium. Direct insurance premiums were up 16%, from first quarter 2017, to $505 million, consistent with the growth trends noted through 2017.
  • The combined ratio was 93.3% for the quarter compared to 86.0% in the first quarter of 2017. Excluding the previously announced catastrophe losses arising from the 2017 Northern and Southern California wildfires, the attritional combined ratio was 87.1% compared to 84.5% in the same period last year. The higher attritional loss ratio is driven by changes in mix of business as well as higher retrocessional costs in the quarter.
  • Net investment income increased 13% for the quarter to $138.3 million.
  • Net after-tax realized and unrealized capital losses amounted to $19.4 million and $199.4 million, respectively.
  • Cash flow from operations was $195.6 million compared to $381.8 million for the same period in 2017.
  • For the quarter, the annualized after-tax operating income¹ return on average adjusted shareholders’ equity² was 10.5%.
  • Shareholders’ equity ended the quarter at $8.3 billion, relatively flat compared to year end 2017. Book value per share was modestly down from $204.95 at December 31, 2017 to $203.62 at March 31, 2018.

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