Bermuda-based insurer and reinsurer, Everest Group, Ltd., has reported net income of $724 million and a Q2 2024 combined ratio of 90.3% as pre-tax underwriting income reached $358 million, driven by a strong result in its reinsurance segment.
Year-on-year, the combined ratio has deteriorated slightly from the 87.7% in Q2 2023, as pre-tax catastrophe losses, net of reinsurance and reinstatement premiums, increased to $135 million from just $27 million, as a number of mid-sized events hit its reinsurance operation.
Group-wide, gross written premiums (GWP) reached $4.7 billion with year-over-year growth of 12.8%, with 16.5% growth in reinsurance and 5.8% growth in the primary insurance business. Net written premiums (NWP) grew 11.2% to $4.1 billion from last year’s $3.7 billion.
The firm’s reinsurance segment performed well in the quarter, with a reported combined ratio of 88.9%, compared to Q2 2023’s 85.8%, with pre-tax underwriting income of $303 million. The higher combined ratio reflects a higher cat load in the segment, with cat losses of $120 million net of estimated recoveries and reinstatement premiums, compared with losses of $27 million in Q2 2023.
Reinsurance GWP grew 16.8% to $3.2 billion from $2.7 billion in the comparative quarter, and NWP for the segment is reported at $3.03 billion, a 15.5% change from last year’s $2.62 billion.
Within reinsurance, Everest has reported that growth was broad-based across geographies and lines as the firm continue to execute with precision. Specifically, growth was driven by a 31.4% increase in property pro-rata, 25% in property catastrophe XOL, and 19.6% in casualty pro-rata (driven by increased rate), when adjusting for reinstatement premiums.
The company’s insurance segment also had a solid quarter, with a reported combined ratio of 94.4% compared to Q2 2023’s 92.6%, with pre-tax underwriting income of $54 million. Catastrophe losses in the insurance segment were minimal at $15 million, net of estimated recoveries and reinstatement premiums.
Insurance GWP rose to $1.5 billion, a 5.8% increase year-over-year from Q2 2023’s $1.4 billion. This was driven by the firm’s sustained international business traction, as it received regulatory approval for new operations in Australia, Colombia, and Mexico. NWP remained constant for the segment at $1.1 billion.
Everest highlights the fact that pricing continues to exceed the loss trend in aggregate, with a meaningful acceleration in pricing across North American long-tail lines.
Turning to investments, and Everest has reported total invested assets and cash of $39.1 billion versus $37.1 billion on December 31st, 2023. Net investment income improved to $528 million versus $357 million in Q2 2023, a company record, driven by a larger asset base as well as strong core fixed income and alternative investment returns.
Group-wide, Everest has reported Q2 2024 net income of $724 million and operating income of $730 million driven by attritional underwriting margin improvement and strong net investment income generation. This compares with net income of $670 million and operating income of $627 million in Q2 2023.
Juan C. Andrade, President and Chief Executive Officer, Everest, commented: “Everest produced another strong quarter and an excellent first half of the year, with second-quarter results delivering an annualized Total Shareholder Return and operating ROE of 20%, driven by solid underwriting and net investment income.
“The fundamentals of our business are robust, creating significant momentum as we expand in areas with the strongest profit trajectory, while remaining focused on disciplined underwriting and risk selection. Our leading Reinsurance business continues to achieve excellent risk-adjusted returns, again evidenced by our success through the most recent renewals. We made progress advancing our primary insurance strategy in key global markets, investing in, and expanding our platform with exceptional talent and capabilities to capitalize on market opportunities. As we move through the second half of 2024, we are capitalizing on this momentum, focused on achieving our primary objective of consistently generating industry-leading returns.”
