Everest Re Reports Third Quarter 2021 Results
Everest Re Group, Ltd. reported its 2021 third quarter results.
Third Quarter 2021 Highlights
- Gross written premium [“GWP”] growth of 25% year over year to $3.5 billion
- Insurance segment GWP growth of 43% year over year to $1.0 billion. The second consecutive quarter above $1.0 billion GWP
- Reinsurance segment GWP growth of 19% year over year to $2.5 billion
- Attritional combined ratio of 87.9%
- Excellent Insurance segment attritional combined ratio of 90.3%, a 3.9-point improvement year over year
- Pre-tax Underwriting loss of $323 million inclusive of pre-tax net catastrophe losses of $635 million
- Robust net investment income of $293 million, led by outstanding alternative asset performance of $170 million
- Common share repurchases of $160 million during the quarter and $200 million year to date
- Annualized year to date Total Shareholder Return of 13.2%
Everest Re Group President & CEO Juan C. Andrade commented on the Company’s results: “During the third quarter of 2021, Everest made significant progress toward the strategic plan objectives detailed in the June investor day presentation. We achieved outstanding top line premium growth across both of our insurance and reinsurance businesses, continued to improve the attritional profitability for our Insurance Division, remained focused on risk appetite discipline and the diversification of our business, demonstrated strong expense management, delivered excellent investment income results, opportunistically reduced our cost of capital, and returned capital to our shareholders.
“Despite the high frequency and severity of the natural catastrophe activity in the quarter, we also benefited from the de-risking of the CAT portfolio and we remain on track to achieve our total shareholder return objective. We continue to consistently demonstrate our ability to relentlessly execute against our plans regardless of the external environment.”
Summary of Third Quarter 2021 Net Income and Other Items
- Net income [loss] of $[73.5] million, equal to $[1.88] per share vs. net income of $243.1 million, equal to $6.07 per share in the same period during 2020
- Net operating income [loss] of $[52.6] million, equal to $[1.34] per share vs. net operating income of $97.0 million, equal to $2.42 per share in the same period during 2020
- Underwriting loss of $323.4 million inclusive of catastrophe losses from Hurricane Ida and European Floods during the quarter, in the amount of $635 million net of recoveries and reinstatement premiums [$555 million in reinsurance and $80 million in Insurance]
- GAAP combined ratio of 112.2% which includes 26.2 points of catastrophe losses vs. 14.0 points of catastrophe losses in the same period during 2020
- No change to Covid-19 Pandemic [“Pandemic”] ultimate loss estimates of $511 million
- Operating cashflow was $1.2 billion vs $1.1 billion a year ago. Year to date operating cashflow was $2.8 billion vs $2.2 billion a year ago.
