Everest Re sees Q3 2019 profits fall
Everest Re Group has announced that third quarter 2019 net income totalled $104.4 million, a severe fall on the $198.4 million in net income it reported for the third quarter of 2018.
After-tax operating income was $138.4 million for the third quarter of 2019, compared to after-tax operating income1 of $167.5 million for the same period last year.
The quarterly result takes Everest Re’s net income for the first nine months of 2019 to $791.8 million, up on the $474.4 million that the company made for the same period of 2018.
After-tax operating income was $741.6 million for the January to September period of 2019, compared to after-tax operating income of $427.6 million for the first nine months of 2018.
Gross written premiums for the quarter were $2.4 billion, an increase of 9 percent compared to the third quarter of 2018. Direct insurance premiums were up 29 percent, from third quarter 2018, to $666.6 million, continuing with the diversified growth trends noted in recent years. Worldwide reinsurance premiums increased 3 percent to $1.7 billion for the third quarter of 2019 compared to the third quarter of 2018.
The combined ratio was 101.4 percent for the quarter compared to 100.0 percent in the third quarter of 2018. Everest Re reported $280 million of current year catastrophe losses, net of reinsurance and reinstatement premiums, incurred in the third quarter of 2019 which the company said were related to Hurricane Dorian and Typhoon Faxai.
Net investment income increased 12 percent for the quarter to $181.1 million.
“Everest generated an impressive 13 percent annualised net income return on equity for the 9 months year to date,” said outgoing president and CEO Dominic J. Addesso, who will be replaced by Juan Andrade in 2020. “Our business and balance sheet are built to provide meaningful protection for our clients, as was the case this quarter with the previously announced catastrophe losses from Hurricane Dorian and Typhoon Faxai. Everest’s mix of business between reinsurance and insurance, supported by robust investment income, results in a strategic balance that has contributed to our longevity and success over many years.”
