Everest Re on track despite losses, says CEO Andrade

Everest Re reported an underwriting loss of $323.4 million for the third quarter after being hit hard by nat cat losses, including those from Hurricane Ida and the European Floods. Its combined ratio for the period of 112.2% included 26.2 points of catastrophe losses compared with 14.0 points, and a 105.2% combined ratio in Q3 2020.

The company’s results show a net income loss of $73.5m for the period, compared with a $243.1 million profit last year. While pre-tax net catastrophe losses of $635m impacted results, Everest reported no change to its Covid-19 pandemic ultimate loss estimates of $511m.

It continued with share buy-backs during the period, with common share repurchases of $160 million during the quarter, taking the total year to date to $200 million. Gross written premium grew 25% year over year to $3.5 billion.

“During the third quarter of 2021, Everest made significant progress toward the strategic plan objectives detailed in the June investor day presentation,” said

Everest Re group president and CEO Juan Andrade.

“We achieved outstanding top-line premium growth across both of our insurance and reinsurance businesses, continued to improve the attritional profitability for our insurance division, remained focused on risk appetite discipline and the diversification of our business, demonstrated strong expense management, delivered excellent investment income results, opportunistically reduced our cost of capital, and returned capital to our shareholders.

“Despite the high frequency and severity of the natural catastrophe activity in the quarter, we also benefited from the de-risking of the CAT portfolio, and we remain on track to achieve our total shareholder return objective.”