Everest Re 2015 profits fall, despite growth

05-02-2016

Bermuda-based Everest Re has reported a fall in its 2015 profits to $977.9 million, compared with $1.2 billion in 2014.

The re/insurance underwriter also reported a slight increase in its combined ratio in 2015 to 83.4 percent, compared to 82.8 percent it 2014.

Contributing to the fall in net income is an increase in Everest Re’s incurred losses and loss adjustment expenses last year, increasing to $3.1 billion, compared with $2.9 billion in 2014. Its net realised capital losses also increased to $102.2 million, compared with $39.5 million in 2014.

Everest Re did see a 2 percent increase in its gross written premiums for last year however, to $5.9 billion. Eliminating the unfavourable effects of foreign currency fluctuations, total premiums were actually up 5 percent for the year, said the firm and worldwide reinsurance premiums, including the Mt Logan Re segment, were essentially flat, on a constant dollar basis, while direct insurance premiums were up 26 percent for the year.

“While the market remains challenging, Everest continues to generate superior results with an underwriting combined ratio of 83.4 percent and an operating return on equity of 15 percent for the year,” said Dominic Addesso, president and chief executive officer, Everest Re.

“This is an impressive result considering the volatility in our financial markets. We remain focused on increasing value for our shareholders as we continue building out the Everest franchise.”

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