Everest Re 2Q2020 preliminary figures, y-o-y changes
- Premiums earned : USD 2,042 million (+12.4%)
- Net investment income: USD 38 million (-78.7%)
- Net realized capital gains: USD 185 million (+510.0%)
- Incurred losses and loss adjustment expenses: USD 1,407 million (+28.5%)
- Commission, brokerage, taxes and fees: USD 466 million (+10.8%)
- Combined ratio: 97.5%
- Net income: USD 191 million (-42.7%)
From April to June 2020, Everest wrote nearly USD 2.4 billion in gross written premiums, an increase of 9.4% as compared to a year ago, 10.7% excluding the impact of foreign exchange. The Reinsurance Segment grew 9.1% while the Insurance Segment was up 9.8% (11.0% and 10.0% respectively excluding the impact of foreign exchange). Insurance written rate continued to exceed loss trend across the group's core P&C lines of business.
Group's combined ratio for the quarter was 97.5%, 95.4% for Reinsurance and 103.4% for Insurance, resulting in USD 50.9 million of underwriting income and highlighting the underlying strength and sustainable profitability of the franchise.
Net pre-tax losses related to the Covid-19 Pandemic include USD 160 million, attributed USD 130 million to Reinsurance and USD 30 million to Insurance. The group also recorded USD 15 million of catastrophe losses from civil unrest in the United States. The attritional combined ratio excluding Pandemic impacts was 88.5%, 86.7% for Reinsurance and 93.7% for Insurance.
In this year's second quarter Everest reported record shareholder's equity of USD 9.3 billion. This, combined with the group's low financial leverage and top tier ratings, makes the group expect to have more than ample capital to take advantage of current and future opportunities in the global reinsurance and insurance market.
Juan C. Andrade, Everest Re Group President & CEO, commented:
"Despite the current challenging and uncertain public health, economic, and social environment, Everest reported another solid quarter and first half of 2020 results. Our ability to successfully leverage our capital position, our global platform, and our success in executing against our objectives - even under adverse conditions - drive our results. Our people continue to demonstrate the passion and resilience to differentiate Everest and deliver value to our customers. We have strong forward momentum across our Reinsurance and Insurance Segments."
More financial information about Everest Re Group can be found at www.everestre.com