Everest Re reports increased profits for full year and Q4 2019
Everest Re Group reported healthy full year 2019 and Q4 2019 numbers, with profits increasing for both periods, and gross written premiums also up.
Everest reported net profit of $1.0 billion for the full year ended December 31, 2019, up from $89 million the previous year. This was despite catastrophe losses, net of reinsurance and reinstatement premiums, that totalled $550 million for the year, including $166.4 million from Hurricane Dorian, and $113.3 million and $190 million, respectively, from Japanese Typhoons Faxai and Hagibis.
Gross written premiums for the year were $9.1 billion, an increase of 8 percent compared to 2018. Reinsurance premiums were up 2 percent to $6.4 billion, with growth in treaty casualty more than offsetting reductions to treaty property premium and reinstatement premiums.
The combined ratio was 95.5 percent for the year, compared to 108.8 percent for 2018.
For Q4 2019 Everest reported net profit of $217.6 million, turning around a net loss of $385.3 million for the same period in 2018. Catastrophe losses, net of reinsurance and reinstatement premiums, totalled $215.0 million in Q4, primarily related to losses from Japanese Typhoon Hagibis of $190 million, and Tornadoes in Dallas, Texas of $25.0 million.
Gross written premiums for Q4 were $2.4 billion, an increase of 7 percent compared to Q4 2018, with reinsurance premiums, excluding the impact of reinstatement premiums, increasing 4 percent, mainly due to growth in treaty casualty.
The Q4 combined ratio was 101.5 percent, down from 134.1 percent for Q4 2018. Excluding catastrophe losses, reinstatement premiums and the favorable prior period loss development, the attritional combined ratio for Q4 was 90.3 percent, compared to 90.4 percent a year earlier.
Juan Andrade, Everest’s president and chief executive officer, said: “These numbers speak to the strength and diversification of our business, and the strength of our underwriting and investment operations. Everest has a great franchise, a well-diversified platform and top talent. We are well positioned for the future.”
