Everest Re announces final Q3 damage estimates

Everest Re Group has added to the list of companies reporting hurricane-related losses in their third quarter results.

The company announced a net loss of $639.4 million for the third quarter 2017, a substantial fall from the $295.4 million profit it reported for the same period of 2016.

According to Everest Re its third quarter results included catastrophe losses, net of reinstatement premiums, of $1.2 billion for hurricanes Harvey, Irma, Maria and the Mexico City earthquake. The net after-tax impact on earnings from these events was $897.7 million for the quarter.

The after-tax operating loss, excluding realised capital gains and losses, was $667.6 million for the third quarter of 2017, compared to after-tax operating income1 of $273.2 million for the same period last year.

“This series of natural catastrophes highlights the nature of our business model,” said Dominic J. Addesso, president and chief executive officer, in a statement on the results. “We have consistently generated strong margins which gives us the financial ability to respond to these events, without impairment. We are proud to be part of an industry that provides financial security to its customers in times of need. Looking forward, market conditions are expected to be more favorable allowing the industry to continue on a sound footing. We should benefit to a greater degree given the strong underwriting fundamentals of our portfolio.”

For the nine months ended September 30, 2017, the net loss was $102.1 million compared to net income of $622.8 million for the first nine months of 2016. The after-tax operating loss, excluding realised capital gains and losses, was $180.6 million, compared to after-tax operating income of $630.1 million for the same period in 2016.