Everest 2nd Quarter Preliminary Information
Everest Re Group, Ltd. announced net investment income, catastrophe losses, and the estimated impact from the ongoing Covid-19 pandemic for the second quarter of 2020.
“Everest is providing details in advance of its full quarterly earnings to be released on August 5, 2020,” the company said. “Despite the ongoing Pandemic and related economic impacts, Everest expects to report another profitable quarter during 2020, with positive underwriting income and growth in gross written premium across our platform.
“The estimated impacts are as follows:
“Everest expects to report net investment income of $38 million pre-tax. Since Everest reports most limited partnership income on a one quarter lag, the global equity market downturn in the first quarter of 2020 is being reflected in our second quarter results. In turn, the improvement in global equity markets during the second quarter will be reflected in increased limited partnership investment income in our third quarter results.
Pre-tax net catastrophe losses in the amount of $15 million arising from claims related to civil unrest in the United States, all within our Insurance segment.
“Pre-tax net Pandemic losses in the amount of $160 million. The $160 million is allocated $130 million to the Company’s Reinsurance segment and $30 million to the Insurance segment. Due to the ongoing nature of this unprecedented event, these losses are substantially classified as incurred but not reported [IBNR] and primarily arise from policies covering event cancellation and postponement, business interruption and workers’ compensation, and include a provision for loss adjustment expenses.
“The second quarter estimate follows an updated and thorough review of existing and potential exposures. Everest continues to evaluate all aspects of our global portfolio. The Pandemic estimate does not account for legal, regulatory or legislative intervention that could retroactively mandate or expand coverage provisions. This amount is in addition to the $150 million of IBNR reported in the first quarter of 2020.”
