Everest Re's GWP dips despite Mt Logan Re growth

Everest Re posted a dip in profits and gross written premiums (GWP) for the second quarter of 2015, despite growth at its special purpose reinsurer Mt Logan Re.

The Bermuda-based reinsurer’s profits dropped to $209.1 million in the second quarter of 2015, compared with $290.2 million in the second quarter of 2014, while its combined ratio deteriorated to 86.3 percent in the quarter, compared with 84.7 percent in the prior year quarter.

Everest Re’s GWP fell 11 percent to $1.3 billion in the second quarter of 2015, compared with $1.4 billion in the same period of the prior year.

Worldwide, its reinsurance premiums, which include the Mt Logan Re segment, were down 13 percent to $877.1 million in the quarter, compared with $1.1 billion in the same period of the prior year.

The decrease was mainly driven by its international reinsurance segment, which reported GWP of $292.8 million for the second quarter of 2015, compared with $454 million in the second quarter of 2014.

Mt Logan Re posted GWP of $37.5 million in the second quarter of 2015, compared with $22.4 million in the second quarter of 2014.

Its insurance premiums, excluding crop business, were up 20 percent, quarter over quarter.

Dominic Addesso, president and chief executive officer, said: “Through the first six months, Everest generated over $550 million of operating earnings, providing an annualised operating return on equity of 15 percent.

“These are solid results, particularly when considering the headwinds of a market that remains quite challenging. Our dynamic and responsive approach to the market, however, has provided unique opportunities and enabled us to continue to deliver superior returns to our shareholders.”