Everest Re Report Q2 Net Income Of $342.9M
Bermuda-based Everest Re Group reported second quarter 2019 net income of $342.9 million, or $8.39 per diluted common share, compared to net income of $69.9 million, or $1.70 per diluted common share for the second quarter of 2018.
After-tax operating income was $320.9 million, or $7.85 per diluted common share, for the second quarter of 2019, compared to after-tax operating income of $40.4 million, or $0.98 per diluted common share, for the same period last year.
For the six months ended June 30, 2019, net income was $691.8 million, or $16.93 per diluted common share, compared to net income of $280.2 million, or $6.81 per diluted common share for the six months ended June 30, 2018.
After-tax operating income was $603.2 million, or $14.76 per diluted common share, for the six months ended June 30, 2019, compared to after-tax operating income of $260.1 million, or $6.32 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 delivered outstanding results for the quarter, with a 16.1% annualized net income return on equity, driven by both solid underwriting and investment performance.
“With nearly $9 billion in common equity and strong franchises in both reinsurance and insurance, our ability to adjust the mix of business to optimize our portfolio was again evident this quarter, as Everest added top line in insurance and casualty reinsurance along with a strong property cat renewal to take advantage of the improved market conditions.”
Operating highlights for the second quarter of 2019 included the following:
- Gross written premiums for the quarter were $2.2 billion, an increase of 5% compared to the second quarter of 2018. Direct insurance premiums were up 17%, from second quarter 2018, to $757.1 million, continuing with the diversified growth trends noted in recent years. Worldwide reinsurance premiums were essentially flat at $1.4 billion for both the second quarter of 2019 and 2018.
- The combined ratio was 89.2% for the quarter compared to 105.1% in the second quarter of 2018. Excluding catastrophe losses, reinstatement premiums and the favorable prior period loss development, the current quarter attritional combined ratio was 88.6% compared to 83.5% in the same period last year.
- There were no current year catastrophe losses incurred in the quarter.
- There was $30 million of adverse development recorded in the quarter related to prior year catastrophe events, mostly offset by $21 million of favorable prior year attritional losses.
- Net investment income increased 27% for the quarter to $179.0 million.
- Net after-tax realized capital gains amounted to $26.0 million for the quarter compared to $10.5 million during the second quarter of 2018.
- Cash flow from operations was $853.5 million for the six months ended June 30, 2019 compared to $132.6 million for the same period in 2018.
- During the quarter, the Company purchased 39,440 shares at a total cost of $8.5 million. The repurchases were made pursuant to a share repurchase authorization, provided by the Company’s Board of Directors, under which there remains 1.3 million shares available.
- Shareholders’ equity ended the quarter at $8.9 billion compared to $7.9 billion at year end 2018. Book value per share was up from $194.43 at December 31, 2018 to $218.07 at June 30, 2019.
