Bermuda-based insurer and reinsurer, Everest Group, Ltd., has reported a Q1 2024 combined ratio of 88.8%, as pre-tax underwriting income reached a record $409 million for the firm, up on the $273 million seen in the prior year period.
The re/insurer’s gross premiums written (GWP) for Q1 2024 was $4.4 billion, reflecting year-over-year growth of 17.2% for the Group as a whole.
GWP grew 20.4% in the reinsurance segment to approximately $3.2 billion, and grew by 9.8% in the insurance segment to a reported $1.2 billion.
Everest has reported $85 million of pre-tax catastrophe losses, net of recoveries and reinstatement premiums, primarily driven by the Francis Scott Key Bridge Collapse in Baltimore, versus $110 million in the prior year period.
The firm’s reinsurance arm assumed the majority of the quarterly cat losses at $80 million, with just $5 million in the insurance segment.
Q1 2024 underwriting income of $409 million is a record for the company, as the combined ratio strengthened from 91.2% in Q1 2023 to 88.8% in Q1 2024, with a reinsurance combined ratio of 87.3% and an insurance combined ratio of 93.1%, compared with 90.8% and 92.3%, respectively, in Q1 2023.
Group-wide, Everest has reported net income of $733 million and operating income of $709 million for Q1 2024, driven by underwriting margin improvement and strong net investment income generation. This compare with net income of $365 million and operating income of $443 million in Q1 2023.
The group’s net investment income improved to $457 million versus $260 million in the prior year’s first quarter, a company record, driven by a larger asset base and strong core fixed income returns. There was also a strong operating cashflow for the quarter of $1.1 billion, in-line with the prior-year quarter.
Juan C. Andrade, President and Chief Executive Officer, Everest, commented: “Everest had a strong start to 2024, with first quarter results delivering significant profitability across all key metrics, including a Total Shareholder Return in excess of 18% and an operating return on equity of 20%. Group underwriting income increased 50% over the prior year to a quarterly record of $409 million with a combined ratio of 88.8%, driven by both of our underwriting franchises.
“Our reinsurance business continued to differentiate Everest during another outstanding January 1 renewal as the flight to quality accelerated. We gained market share with targeted clients, positioning the portfolio for attractive levels of profitability. In our insurance division, we advanced our disciplined expansion across global markets, while remaining focused on prudent risk selection and the bottom line.
“Additionally, our investment portfolio contributed a record $457 million in net investment income. With strong momentum across our underwriting businesses, we are executing on our three-year strategic plan, focused on generating consistent, industry leading financial returns.”
