Everest Re, 9M2019: net income growth rate negatively impacted by third quarter hurricanes

30 October 2019 — press.release
Everest Re Group reported a net income of USD 792 million for the first nine months of 2019, up 7.4% year-on-year. However, the third quarter of 2019 net income was 47.4% smaller than previous year result, amounting USD 104 million, driven by hurricane related losses.

Everest Re nine months figures (vs. 9M2018) - unaudited

  • Total revenues: USD 6,017million (+8.0%)
  • Premiums earned: USD 5,456 million (+7.4%)
  • Claims and expenses: USD 5,137 million (%)
  • Net investment income: USD 501million (+13.6%)
  • Net income:USD 792 million (+66.9%)

Everest Re third quarter figures (vs. 3Q2018) - unaudited

  • Total revenues: USD 2,043 million (+5.5%)
  • Premiums earned: USD 1,906 million (+10.1%)
  • Claims and expenses: USD 1,949 million (+11.6%)
  • Net investment income: USD 181 million (+12.2%)
  • Net income: USD 104 million (-47.4%)

Gross written premiums for the quarter were USD 2.4 billion, an increase of 9% compared to the third quarter of 2018. Direct insurance premiums were up 29%, from third quarter 2018, to USD 667 million, continuing with the diversified growth trends noted in recent years. Worldwide reinsurance premiums increased 3% to USD 1.7 billion for the third quarter of 2019 compared to the third quarter of 2018.

The combined ratio was 101.4% for the quarter compared to 100.0% in the third quarter of 2018. There were USD 280 million of current year catastrophe losses, net of reinsurance and reinstatement premiums, incurred in the third quarter of 2019 which were related to Hurricane Dorian and Typhoon Faxai.

Net investment income increased 12% for the quarter to USD 181 million.

Cash flow from operations was USD 1,487 million for the nine months ended September 30, 2019 compared to USD 544 million for the same period in 2018.

The Company did not repurchase any shares during the quarter but has repurchased 114,633 shares during 2019 at a total cost of USD 25 million. The repurchases were made pursuant to a share repurchase authorization, provided by the Company's Board of Directors, under which there remains 1.3 million shares available.

Dominic J. ADDESSO, President and Chief Executive Officer, commented on the results:

"Everest generated an impressive 13% annualized net income return on equity for the 9 months year to date. Our business and balance sheet are built to provide meaningful protection for our clients, as was the case this quarter with the previously announced catastrophe losses from Hurricane Dorian and Typhoon Faxai. Everest's mix of business between reinsurance and insurance, supported by robust investment income, results in a strategic balance that has contributed to our longevity and success over many years."

More financial information about Everest Re can be found on everestre.gcs-web.com/financial-supplements

Source: everestre.com

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