30 October 2020News

Everest Re reports soaring Q3 profits, hails “underwriter’s market”

Everest Re Group reported a marked increase in its profitability in Q3 as Juan Andrade, the re/insurer’s president and chief executive officer, hailed improving market conditions that he said had driven “a flight to quality.”

Everest Re made a net profit of $243.1 million in Q3 2020, compared to $104.4 million in the three months ended September 30, 2019.

It reported pre-tax catastrophe losses of $300 million, net of reinsurance and reinstatement premiums, and $125 million of net pre-tax losses related to the pandemic.

Excluding the catastrophe and COVID-19 pandemic losses, Everest reported an attritional combined ratio of 85.8 percent, down from 87.1 percent in the same period of 2019.

Meanwhile, gross written premium grew by 16 percent year on year.

The reinsurance segment reported gross written premiums of $2.1 billion, a 20 percent increase over the same period in 2019 and a combined ratio of 105.4 percent, including catastrophe losses of 16.3 percent and pandemic losses of 6.7 percent.

Its attritional combined ratio was 83.0 percent, excluding catastrophe and pandemic losses, compared to 84.0 percent in the same period of 2019.

Andrade said: “Everest is benefitting from a flight to quality and strength in the reinsurance and insurance markets. This is an underwriter’s market. Our broadly diversified reinsurance and insurance franchises, our financial strength, deep distribution relationships, and our focus on providing solutions to our customers position us well for this environment.”