Everest Re Reports Full Year & Q4 2020 Results
Everest Re Group reported its 2020 fourth quarter and year end results.
Fourth Quarter 2020 Highlights
- Net income of $64 million equal to $1.59 per share
- Net operating loss of $[44] million, $[1.12] per common share
- Gross written premium growth of 13%
- Attritional combined ratio of 86.3%, a 4 point improvement year over year
- Pre-tax net catastrophe losses of $70 million, Covid-19 Pandemic [Pandemic] losses of $76 million, and a prior year reserve strengthening of $400 million
Full Year 2020 Highlights
- Net income of $514 million, $12.78 per diluted common share
- Net operating income of $300 million, $7.46 per diluted common share
- Growth in diluted book value per share of 11.4% inclusive of dividends
- Gross written premium growth of 15%
- Attritional combined ratio of 87.5%, ~ 1 point improvement year over year
- 2020 cash flow from operations of $2.9 billion
Everest Re Group President & CEO Juan C. Andrade commented: “We are relentlessly executing our strategies from a position of strength in this robust market as evidenced by 2020 growth in gross written premiums of 15% and net written premiums of 17% and improvement in underlying underwriting profitability. Our attritional combined ratio improved approximately one point to 87.5% versus the prior year, with our Insurance segment improving 2.3 points to 94.2%.
“Despite the $511 million Pandemic loss provision and a $400 million prior accident year reserve strengthening, we delivered $300 million in operating income and $514 million in net income providing a return on equity of 5.8%.
“Everest’s investment income remained resilient at $642 million despite the Pandemic’s impact on financial markets and the sharp decline in interest rates. Our total shareholders’ equity grew to a record $9.7 billion from $9.1 billion during the year, representing net book value per share growth of 11.4% including dividends.
“Everest has a strong capital position bolstered by the $1.0 billion senior notes offering and a leading global franchise with great momentum entering 2021.”
