Bermuda-based insurer and reinsurer, Everest Re Group, has reported a “strong” start to 2023 with net income of $365 million and an improved combined ratio of 91.2%, while premiums across the group spiked by 17.5%.
Net income rose from the $298 million posted in Q1 2022, while operating income increased to $443 million in Q1 2023 from $406 million in Q1 2022.
Across both insurance and reinsurance, Everest Re has reported gross written premium (GWP) of $3.7 billion and net written premium (NWP) of $3.3 billion, representing year-on-year growth of 17.5% and 18.4%, respectively.
The re/insurer recorded $110 million of pre-tax catastrophe losses, compared to $115 million in 2022, net of estimated recoveries and reinstatement premiums driven by the Turkey earthquake as well as the New Zealand floods and cyclone.
Pre-tax underwriting income reached $273 million in Q1 2023, the third highest result over the past 5 years, the re/insurer noted.
Year-on-year, Everest Re’s loss ratio improved, while its commission and brokerage ratio fell slightly, and the other underwriting expenses ratio weakened. This has seen the re/insurer report a combined ratio of 91.2% in Q1 2023, compared with 91.6% a year earlier.
Within its reinsurance business, GWP increased by 20.6% to $2.64 billion, as NWP rose by almost 18% to $2.45 billion. Everest Re attributes the premium growth to 19.4% growth in property pro-rata, 27.5% growth in property Cat, and 22.1% in Casualty pro-rata.
Catastrophe losses within reinsurance amounted to $108 million in Q1 2023, which is down from the $110 million posted a year earlier.
All in all, the reinsurance segment’s combined ratio strengthened by 0.6 percentage points, year-on-year, to 90.8% in Q1 2023.
Turning to the firm’s primary insurance operation, GWP increased by 10.5% to $1.1 billion, as NWP spiked by 19.7% to $875 million.
The segment recorded net catastrophe losses of just $2 million in Q1 2023, compared with $5 million a year earlier. The insurance segment’s combined ratio hit 92.4% in Q1 2023, against 91.9% in Q1 2022.
On its investments, Everest Re has announced total invested assets and cash of $31.4 billion at the end of Q1 2023, compared with $29.9 billion at the end of 2022.
Shareholders’ equity reached $9.0 billion against $8.4 billion at year end 2022.
Juan Andrade, the company’s President and Chief Executive Officer (CEO), commented: “Everest had a strong start to the year, with first quarter results that delivered significant underwriting profit, a 17.2% operating return on equity and a total shareholder return in excess of 14%.”
“We delivered profitable growth across both underwriting franchises, particularly in reinsurance, where we continued to drive expanding margins. With our industry leading position, ongoing flight to quality, and relentless execution, we are well equipped to take advantage of market tailwinds.”
