Everest Re Group has seen its fourth quarter net income fall to $64 million, a drop from the $217 million announced in the prior year quarter.
This drop is largely due to a prior year reserve strengthening hit of $400 million as well as catastrophe losses of $70 million. COVID-19 losses were $76 million for the quarter.
The company also fell to a net operating loss of $44 million, having secured a $130 million operating profit in the prior year quarter.
The reinsurance segment saw gross written premiums increase 12% for the quarter and 15% for the year, driven by new business opportunities, growth with existing customers, and improved rates and terms and conditions.
The company’s insurance segment saw gross written premiums rise 15% for the quarter and 15% for the year.
Net investment income was $222 million for the quarter and $647 million for the year, including limited partnership gains of $91 million for the quarter and $113 million for the year.
Everest Re Group President & CEO Juan C. Andrade commented, “We are relentlessly executing our strategies from a position of strength in this robust market as evidenced by 2020 growth in gross written premiums of 15% and net written premiums of 17% and improvement in underlying underwriting profitability.
“Our attritional combined ratio improved approximately one point to 87.5% versus the prior year, with our Insurance segment improving 2.3 points to 94.2%. Despite the $511 million Pandemic loss provision and a $400 million prior accident year reserve strengthening, we delivered $300 million in operating income and $514 million in net income providing a return on equity of 5.8%.
“Everest’s investment income remained resilient at $642 million despite the Pandemic’s impact on financial markets and the sharp decline in interest rates.
“Our total shareholders’ equity grew to a record $9.7 billion from $9.1 billion during the year, representing net book value per share growth of 11.4% including dividends. Everest has a strong capital position bolstered by the $1.0 billion senior notes offering and a leading global franchise with great momentum entering 2021.”