Everest Re has reported its Q3 2022 results, saying that it suffered a net operating loss of $205m, with a net loss of $319m.
The losses, said the firm in a statement, were driven by an active catastrophe quarter and volatile market conditions. However, it also said that it had seen YOY growth in gross written premium (GWP) of 6.3% in constant dollars to reach $3.7bn. Combined ratios were 112% for the group, 115% for reinsurance, and 103.5% for insurance due to catastrophe losses in the quarter.
Overall, the firm has reported a pre-tax underwriting loss of $367 million for the quarter, including $730 million of of pre-tax catastrophe losses net of estimated recoveries and reinstatement premiums.
The losses were primarily from Hurricane Ian and other events including European Hailstorms, Hurricane Fiona and Typhoon Nanmadol, says the reinsurer.
On the asset side of the balance sheet, Everest Re has reported net investment income of $151 million for Q3 2022.
Juan C. Andrade, president and CEO of the Everest Group, said: “The third quarter’s heightened risk environment, including global catastrophe events and continued global economic uncertainty further underscored the strength of Everest’s business and commitment to support our customers with solutions vital to navigating this turbulent period in history.”
He added: “Everest’s diversification strategy and underwriting discipline were key to mitigating our exposure to one of the industry’s largest hurricane losses in U.S. history. With our well-defined strategy, we’re poised to take advantage of the hardening market, focused on segments with the best risk adjusted returns.”
Andrade acknowledged the challenging macroeconomic environment, saying that both both underwriting businesses delivered sub-90 attritional combined ratios and that the firm continued to make an underwriting, operating, and net income profit on a year-to-date basis.
He added: “We continued to grow and diversify across geographies, businesses and product lines with top talent leading our platform. We are focused on executing our strategic plan as we continue to build the company for the long-term.”
On the company’s reinsurance segment, it said it had seen GWP of $2.6bn for the quarter, up from $2.5bn the previous year. It said that this quarter includes $110m of reinstatement premiums (vs $60m a year ago). Growth was driven by casualty lines and continued international expansion offset by targeted reductions in property and headwinds from the strong dollar.
