Everest Re sees GWP rise 8% to $3.4b

Everest Re has reported an 8.1% year-on-year increase in gross written premium (GWP) for the second quarter, to $3.4 billion. In insurance, GWP rose by 19.6%, to $1.2 billion, and in reinsurance by 2.5%, to $2.2 billion.

GWP for the year to 30 June was $6.6 billion, an increase of 8.4% on the same period of 2021.

Its Q2 combined ratio was 91.8%, an improvement of 2.5 points. In insurance it was 91.5%, a decrease of 2 points, and in reinsurance it was 91.8, an increase of 3.9 points.

Net operating income in the second quarter was $386 million, which drove a net income of $123 million for the quarter and of $420 million for the year to date, but these were year-on-year falls of 82% and 59%, respectively.

The company’s pre-tax underwriting income of $240 million included $85 million of catastrophe losses net of recoveries and reinstatement premiums. Catastrophe events comprised South Africa flood losses, Canadian and European storms, and second-quarter events in the United States

Everest posted a $45 million estimate for the Russia/Ukraine war, adding it has limited direct exposure to the conflict but “significant uncertainty” regarding market and industry losses remains.

“Our focus on underwriting profitability and operational efficiency, supported by our investment portfolio delivered $386 million in net operating income and a 15.3% operating ROE,” Everest Re group president and chief executive officer Juan Andrade, said.

“We expanded margins across our insurance and reinsurance businesses with disciplined growth, continued to scale our insurance platform and in reinsurance capitalized on strategic market opportunities that improved the diversity and economics of our book, while reducing volatility,” he added.