Everest Re reports fall in Q1 2018 profits

Everest Re Group has reported first quarter 2018 net income of $210.3 million, down on the $291.6 million it for the same quarter of 2017.

After-tax operating income was $219.7 million for the first quarter of 2018, compared to after-tax operating income of $267.1 million for the same period last year.

“Everest continues to deliver a solid performance with double digit returns on equity,” said Dominic Addesso, president and chief executive officer. “Our diversified growth strategies, with premium up 21 percent, continue to provide balance and stability to the overall portfolio. In fact, excluding catastrophe losses, our net operating income was up 5 percent and underwriting income was above $200 million. We are pleased with our overall results and believe they once again demonstrate the strength of the Everest franchise.”

Gross written premiums for the quarter were $1.9 billion, an increase of 21 percent compared to the first quarter of 2017. On a constant dollar basis, premium was up 19 percent, quarter over quarter. Worldwide reinsurance premiums were up 22 percent to $1.4 billion, with growth across each segment primarily driven by increased pro-rata premium. Direct insurance premiums were up 16 percent, from first quarter 2017, to $505 million, consistent with the growth trends noted through 2017.

Everest Re said that it has also 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.