Bermudian reinsurer Everest Re Group has reported a 47% decrease in net earnings during the third quarter of 2019, primarily due to catastrophe losses stemming from Hurricane Dorian and Typhoon Faxai.
Everest Re recorded net income of $104.4 million this year, compared to $198.4 million for the same period last year.
This figure was impacted by $280.0 million of losses related to Dorian and Faxai, net of reinsurance and reinstatement premiums, which the company previously announced two weeks ago.
Accordingly, Everest Re’s combined ratio deteriorated to 101.4% in Q3, compared with 100.0% last year.
Looking at the first nine months of the year, however, Everest Re’s results were more positive, with net income increasing 70% to $791.8 million.
The reinsurer also achieved significant top line growth, with gross written premiums increasing by 9% to $2.4 billion during Q3 2019.
Worldwide reinsurance premiums were up by 3% to $1.7 billion for the quarter, while direct insurance premiums grew 29% to $666.6 million.
Similarly, net investment income increased by 12% for the quarter to $181.1 million, and by 14% to $501.1 million for the nine-month period.
Dominic J. Addesso, President and Chief Executive Officer (CEO) at Everest Re, commented on the results: “Everest generated an impressive 13% annualized net income return on equity for the 9 months year to date.”
“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,” he explained.
“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.”
