27 October 2015News

Everest bemoans challenging market as Q3 profits dip

Everest Re made a net profit of $88.6 million in the quarter a big drop on the $274.9 million it made in the same period a year earlier.

The company’s gross written premiums were $1.7 billion in the quarter, an increase of 3 percent compared to the third quarter of 2014. Eliminating the effects of foreign currency fluctuations, total premiums were actually up 6 percent, the company said.

The reinsurer’s combined ratio for the quarter was 89 percent compared with 85.7 percent in the third quarter of 2014, an increase the company blamed on incurred losses of $40 million for the Chile earthquake and $60 million for the explosion in the port of Tianjin, China.

Dominic Addesso, chief executive of Everest Re, said: “We are pleased with the results that Everest has achieved thus far this year considering the challenging market dynamics – both on the underwriting and investment fronts.

“After-tax operating income totalled $755 million through the first nine months of the year, despite a number of industry events, leading to a 14% annualized operating return on equity and a 4% growth in book value per share. Premium, on a constant dollar basis, was up 4% for the year, as we continue to seek out opportunities for profitable growth.”