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Everest Re’s reinsurance business grew by 16 percent growth in the second quarter of 2014 driven by US property and specialty lines, despite its CEO cautioning on tough market conditions.
Reinsurance premiums globally, including its Mt. Logan Re segment, were up 16 percent while insurance premiums remained flat, compared with the prior year quarter.
The company’s GWP increased by 12 percent to $1.4 billion and its combined ratio for the quarter was 84.7 percent compared to 87.6 percent in the second quarter of 2013.
For the second quarter 2014 net income hit $290.2 million, a small increase compared with the $275.6 million it made in the prior year quarter.
Over the six months ended June 30th, 2014, however, its net income fell to $584.1 million compared with $660 million in the first six months of 2013.
Dominic Addesso, president and CEO, says: “Everest continues to generate strong earnings, despite a challenging marketplace. We are seeing select market opportunities, which is driving top-line growth and producing excellent underwriting margins and double digit returns on equity.
“This is driving growth in shareholder value with book value per share, adjusted for dividends, up over 10 percent through the first six months of the year. We continue to strategically manoeuvre our underwriting portfolio to find the best opportunities and look forward to continuing this strong pace through the remainder of the year.”
Everest Re, Q2, results, reinsurance, Dominic Addesso