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shutterstock_1704091249_natali-_-mis
29 March 2023News

Everen Group units unveil losses in results

Everen and Everen Specialty, both part of the Everen Group (once known as The OIL Group of companies), both posted a net loss in their most recent results. Bertil Olsson, president and CEO of both, noted some of the unique challenges the businesses faced including significant volatility in the underwriting and investment markets.

Everen insurers many of the world’s energy companies; Everen Specialty provides excess property and liability insurance with a focus on the energy industry. They were rebranded with these names in June 2022.

For 2022, Everen recorded a net loss of $776.7 million, driven by net investment losses of $524.8 million, net underwriting losses of $229.2 million and general and administrative expenses of $22.7 million.

Olsson explained: “While 2022 was financially challenging, our insured losses were within expected levels. Everen is focused on creating long term value and a strong commitment to our shareholders. Our goal is to continuously deliver stable and sizeable capacity with consistent terms and conditions through difficult market environments.

“Over the past 9 years, Everen has charged premiums of $4.1 billion while returning almost $3.0 billion in dividends to shareholders. The Board’s decision to issue the $200 million dividend carefully considered the company’s multi-year Capital Management Plan and potential future capital needs of the Strategic Plan.”

Everen Specialty, revealing audited financial results for the year ending November 30, 2022, reported a net loss of $108 million. It reported gross written premiums of $657 million, an increase of $20 million from the prior year. Net premiums earned for the year were $507 million. It reported a net underwriting loss of $21 million and a combined ratio of 109.2%, a 3.7% improvement over the prior year. The Company reported a net investment loss of $62 million driven by net unrealized losses on investments as fixed income securities were impacted by the increase in global interest rates.

Olsson noted: “2022 was a busy and uniquely challenging year where significant volatility in the underwriting and investment markets impacted our results. In spite of this, the Company continued to execute on its strategic initiatives to improve on the underwriting performance with a focus on certain underperforming lines of business.

“We also continued the successful expansion of OCIL Specialty Ltd, our Bermuda based Class 3A insurance company, which is a U.S. licensed excess and surplus lines insurer.”




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