Everest Re, FY2019: net income rose by USD 920 million

11 February 2020 — press.release
For the full year ended December 31, 2019, Everest Re Group reported a net income of USD 1,009.5 million, showing a substantial increase compared to FY2018 net income of USD 89.0 million.

For the fourth quarter 2019, the Company reported net income of USD 217.6 million, an improvement of the financial status when compared to the net loss of USD 385.3 million at the end of the fourth quarter of 2018.

For 12 months ended, the After-tax operating income for the year was USD 872.4 million, while the forth quarter alone value reached at USD 236.9 million.

Everest Re FY2019 (12 months) figures, y-o-y evolution

  • Total Revenues: USD 8,231 million (+11.8%)
    • Premiums earned: USD 7,404 million (+6.8%)
    • Net investment income: USD 647 million (+11.3%)
  • Total Claims and Expenses: USD 7,132 million (-6.2%)
    • Incurred losses: USD 4,923 million (-12.9%)
    • Commission, brokerage, taxes and fees: USD 1,704 million (+12.2%)
  • Net Income: USD 1,009 million (+1,033.7%)

Gross written premiums for the year were USD 9.1 billion, an increase of 8% compared to 2018. Reinsurance premiums were up 2% to USD 6.4 billion with growth in treaty casualty more than offsetting reductions to treaty property premium and reinstatement premiums. Insurance premiums were up 23% to USD 2.8 billion, with balanced growth being generated across all major business lines.

The combined ratio was 95.5% for the year, compared to 108.8% for 2018. Excluding catastrophe losses, reinstatement premiums and the favorable prior period loss development, the attritional combined ratio was 88.4% for the year, compared to 87.0% for 2018.

Catastrophe losses, net of reinsurance and reinstatement premiums, amounted to USD 550.0 million in the year, primarily related to losses from Hurricane Dorian of USD 166.4 million and losses from Japanese Typhoons Faxai and Hagibis in the amount of USD 113.3 million and USD 190.0 million, respectively.

Prior year reserve development for 2019 was reported in the amount of USD 93.6 million favorable, equal to 1.3 loss ratio points.

Net investment income amounted to USD 647.1 million for the year, an increase of 11%, including limited partnership income in the amount of USD 105.8 million.

Net after-tax realized gains amounted to USD 150.8 million for the year, while net after-tax unrealized capital gains were USD 483.8 million.

Cash flow from operations was USD 1.9 billion for the full year 2019, compared to USD 610.1 million for 2018.

During 2019, the Company repurchased 114,633 shares at a total cost of USD 24.6 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.

Juan C. Andrade, President and Chief Executive Officer, commented the results:

"For the full year 2019, Everest produced net income of over USD 1 billion, the best result since 2014. On an ROE basis, this equates to a 12% return on average equity. These numbers speak to the strength and diversification of our business, and the strength of our underwriting and investment operations. Everest has a great franchise, a well-diversified platform and top talent. We are well positioned for the future."

More financial information about Everest Re can be found at everestre.com/financial-supplements.

Source: everestre.com
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