Juan Andrade, President, CEO and Director of Bermuda-based reinsurer Everest Re, has said that he expects further improvements in the reinsurance market going into the January 2023 renewal period.
Speaking on an earnings call alongside the release of Everest Re’s Q2 results, Andrade addressed the issue of market conditions through the mid-year renewals and how they are expected to develop heading into next year.
Everest Re reported $386 million in net operating income for Q2 2022 and net income of $123 million, as well as $3.4 billion in gross written premiums.
Andrade noted that reinsurance market conditions have “steadily improved” over the course of 2022, with economics for property cat business highlighted in particular as having seen imrpovements at mid-year.
“We are seeing improved economics for property cat. Everest’s position as a preferred market has allowed us to reposition our participation in key programs, further away from frequency losses and achieve better expected profit or reduced cat exposure,” the Everest Re boss told listeners on the earnings call.
“Our underwriting teams deploy capacity with discipline. Casualty market remained stable with some tightening of terms driven by market concerns over social inflation and emerging risks,” Andrade continued. “The market is showing signs of discipline, especially in pro rata, where cedes appear to be stabilizing. Our underwriting teams are data-driven, carefully tracking and analyzing trends to ensure we manage the underwriting cycle.”
“In summary, we are positioned to capitalize on opportunities as we maintain our strong underwriting discipline. We are well placed going into the January renewal, and we expect further improvements in the market.”