Everest Re Reports 2022 Fourth Quarter Results
Everest Re Group, Ltd. reported its fourth quarter 2022 results.
Fourth Quarter 2022 Highlights
- Net Operating Income of $478 million, and Net Income of $496 million driven by continued underwriting margin improvement. YTD 2022 Net Operating Income of $1.1 billion, Net Income of $597 million
- $3.6 billion in gross written premium [GWP] with year over year growth of 9% in constant dollars for the Group, 21% in constant dollars for Insurance, and 3.7% in constant dollars and excluding reinstatements for Reinsurance
- Combined ratios of 87.8% for the Group, 86.4% for Reinsurance and 91.4% for Insurance
- Strong attritional combined ratios of 87.3% for the Group, 86.0% for Reinsurance and 90.8% for Insurance
- Pre-tax underwriting income of $368 million including $15 million of pre-tax catastrophe losses net of estimated recoveries and reinstatement premiums. The catastrophe losses were from Winter Storm Elliott
- Net investment income of $210 million, driven by stronger fixed income returns as new money yields continue to improve
“Everest’s fourth quarter results capped a strong year of consistent execution and positive momentum for the company,” said Juan C. Andrade, Everest President and CEO. “We grew both underwriting franchises with improved margins, significantly reduced volatility and generated solid returns despite ongoing market uncertainty and another elevated catastrophe year.
“This led to over $1 billion in operating income, and a double-digit operating return on equity for both the quarter and the full year. We had a successful January 1 reinsurance renewal executing a precise and well-orchestrated strategy. We leveraged Everest’s global leadership position to capitalize on the robust property market and the flight to quality was evident across virtually all lines and geographies. We drove improved pricing, terms and conditions and deepened relationships with new and existing core clients throughout the world, which significantly improved risk adjusted returns across the entire portfolio. We are well positioned with the talent and the platform to continue this momentum in 2023.”
Summary of Fourth Quarter 2022 Net Income and Other Items
- Net Income of $496 million, equal to $12.66 per diluted share versus fourth quarter 2021 net income of $431 million, equal to $10.94 per diluted share
- Net operating income of $478 million, equal to $12.21 per diluted share versus fourth quarter 2021 net operating income of $359 million, equal to $9.12 per diluted share
- GAAP combined ratio of 87.8% including 0.5 points of catastrophe losses versus the fourth quarter 2021 figures of 91.9% including 4.5 points of catastrophe losses
- Strong operating cashflow for the quarter of $1.0 billion which is flat versus the fourth quarter 2021
