Everest Group net income rises despite rise in cat claims
Bermuda-based Everest Group's net income increased by 8% to $724 million as record investment income offset a jump in catastrophe losses.
The re/insurer said net investment income rose 47.8% to $528 million, driven by an increase in assets and strong core fixed income and alternative investment returns.
The company was hit by a rise in pre-tax catastrophe losses of $135 million, compared to $27 million in the same period in 2023.
"Everest produced another strong quarter and an excellent first half of the year, with second quarter results delivering an annualized total shareholder return and operating ROE of 20%, driven by solid underwriting and net investment income,” said Juan Andrade, president and CEO. “The fundamentals of our business are robust, creating significant momentum as we expand in areas with the strongest profit trajectory, while remaining focused on disciplined underwriting and risk selection.
"Our leading reinsurance business continues to achieve excellent risk adjusted returns, again evidenced by our success through the most recent renewals. We made progress advancing our primary insurance strategy in key global markets, investing in, and expanding our platform with exceptional talent and capabilities to capitalise on market opportunities.
"As we move through the second half of 2024, we are capitalising on this momentum, focused on achieving our primary objective of consistently generating industry leading returns.”
Everest gross written premium rose 13% to $4.7 billion for the group while the company had a combined ratio of 90.3% compared to 87.7%, which included 4.1 points of catastrophe losses. Underwriting income for the group was $358 million.
By segment, the reinsurance segment saw underwriting income of $303 million while its combined ratio was 88.9% compared to 85.8%.
The insurance segment's underwriting income rose 5.82% to $54 million as its combined ratio was 94.4% compared to 92.6%.
Strong operating cashflow for the quarter of $1.3 billion versus $1.1 billion in the second quarter 2023.
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.