Everest Re Reports Third Quarter 2022 Results
Everest Re Group, Ltd. reported its third quarter 2022 results, noting that “Everest’s diversification strategy and underwriting discipline were key to mitigating our exposure to one of the industry’s largest hurricane losses in U.S. history.”
Third Quarter 2022 Highlights
- Net Operating Loss of $205 million, and Net Loss of $319 Million driven by an active catastrophe quarter and volatile market conditions. YTD 2022 Net Operating Income of $587 million, Net Income of $101 million, and Underwriting income of $109 million
- $3.7 billion in gross written premium [GWP] with year over year growth of 6.3% in constant dollars for the Group, 13.1% in constant dollars for Insurance, and 3.4% in constant dollars for Reinsurance
- Combined ratios of 112.0% for the Group, 115.0% for Reinsurance and 103.5% for Insurance elevated due to catastrophe losses in the quarter as previously announced
- Strong attritional combined ratios of 87.6% for the Group, 86.8% for Reinsurance and 89.8% for Insurance, which is a new record for that segment
- Pre-tax underwriting loss of $367 million including $730 million of pre-tax catastrophe losses net of estimated recoveries and reinstatement premiums as previously announced. The losses were primarily from Hurricane Ian and other events including European Hailstorms, Hurricane Fiona and Typhoon Nanmadol
- Net investment income of $151 million, driven by stronger fixed income returns as new money yields continue to improve partially offset by volatile equity markets and the lag in private equity reporting
Everest Re Group President & CEO Juan C. Andrade commented on the Company’s results: “The third quarter’s heightened risk environment, including global catastrophe events and continued global economic uncertainty further underscored the strength of Everest’s business and commitment to support our customers with solutions vital to navigating this turbulent period in history.
“Everest’s diversification strategy and underwriting discipline were key to mitigating our exposure to one of the industry’s largest hurricane losses in U.S. history. With our well-defined strategy, we’re poised to take advantage of the hardening market, focused on segments with the best risk adjusted returns.
“Despite the challenging macroeconomic environment, both underwriting businesses delivered sub-90 attritional combined ratios and we continue to make an underwriting, operating, and net income profit on a year-to-date basis. We continued to grow and diversify across geographies, businesses and product lines with top talent leading our platform. We are focused on executing our strategic plan as we continue to build the company for the long-term.”
