Everest Re rebounds with Q3 2018 results
Everest Re Group, has reported third quarter 2018 net income of $205.6 million, up from the net loss of $639.4 million it made in the same quarter of 2017.
After-tax operating income was $167.5 million for the third quarter of 2018, compared to the after-tax operating loss of $623.7 million it reported for the same period of 2017.
Gross written premiums for the quarter were $2.2 billion, an increase of 8 percent compared to the third quarter of 2017. Worldwide reinsurance premiums were up 7 percent to $1.7 billion, with growth across each segment primarily driven by increased casualty and property pro-rata premium, rate improvement, increased shares on existing business and profitable new opportunities. Direct insurance premiums were up 8 percent, from third quarter 2017, to $517.3 million, continuing with the diversified growth trends noted in recent years. Net investment income increased 18 percent for the quarter to $161.4 million
“Everest generated an annualised, net income return on equity for the quarter of 10 percent, despite the previously announced catastrophe losses,” said president and chief executive officer, Dominic Addesso. “The underlying results were quite strong with an attritional combined ratio of 85.8 percent year to date as a result of our diversified portfolio.”
Everest Re added that effective this year, it has changed its reporting of operating income, a non-GAAP financial measure.
Historically operating income represented net income, excluding realized capital gains and losses and the tax impact related to the enactment of the Tax Cuts and Jobs Act in 2017. Starting in first quarter 2018, the company further adjusted operating income to exclude foreign exchange gains and losses as it believes the impact of foreign currency movements on income is not indicative of the performance of the underlying business in a particular period.