Bermuda-based reinsurer Everest Re has said that it expects its fourth-quarter 2019 results will include catastrophe losses, net of reinsurance and reinstatement premiums, of $215 million, mostly driven by the impact of Typhoon Hagibis in Japan.
A significant $190 million, or 88% of the reinsurer’s Q4 catastrophe losses are attributable to Hagibis, while tornado losses in Dallas, Texas totalled $25 million for Everest Re.
Currently, the total insurance and reinsurance industry loss from the typhoon is unknown, but estimates suggest a hit of around the $10 billion mark for the sector.
Everest Re also expects that elevated current year losses in the reinsurance crop book as a result of poor weather conditions in both the U.S. and Canada, will have a negative impact of around $50 million on quarterly underwriting income.
At the same time, the reinsurer anticipates recording net favourable prior year reserve development of $19 million, and approximately $146 million of net investment income.
The firm is scheduled to announce its results for the fourth-quarter and full-year 2019 on February 10th, but in light of the catastrophe loss amounts, has said that it expects full-year net income to total around $1 billion, leading to a net income return on equity of 12%.
Regarding the January 1st renewals, Everest Re reports that it continued to see strong rate momentum in the majority of business classes, adding that its scale and diversification enables it to make the most of more favourable market conditions.
