Bermuda-based reinsurer Everest Re Group, Ltd. saw its net income increase from $210.3 million to $348.9 million in the first-quarter of 2019, with growth occurring in both insurance and reinsurance.
Overall, gross written premiums jumped 10% in Q1 2019 when compared with the prior year quarter, totalling $2.1 billion. Globally, reinsurance premiums increased 7% for the firm in the period, primarily a result of greater property and casualty pro-rata premium, and increased shares on existing business as well as profitable new growth.
Direct insurance premiums also increased for Everest Re in Q1 year-on-year, by 18% to $595.1 million, which the reinsurer states reflects a continuation of the diversified growth trends noted in recent years.
The Bermudian reinsurer substantially improved its combined ratio year-on-year, from 93.3% to 88.7%. This includes catastrophe losses of $25 million, net of reinsurance, and which relates to the Townsville monsoon in Australia. For Everest Re, there was no change to prior year catastrophe loss estimates in the period.
However, estimated net favourable prior year cat development was somewhat offset by $24 million of adverse development on the Japan cat losses of the third-quarter of 2018.
At $141 million, net investment income increased by almost 2% for the reinsurer in Q1 2019.
Commenting on the firm’s Q1 2019 results, President and Chief Executive Officer (CEO), Dominic Addesso, said: “During the first quarter of 2019 Everest produced very strong financial results while continuing to expand our market profile with growth in both our reinsurance and insurance businesses.
“The Company delivered $8.54 of net income per diluted common share, equal to a 17% annualized return on equity, driven by both solid underwriting and investment returns. Our underwriting operations are strategically balanced between reinsurance and insurance, allowing us to quickly respond to market conditions across virtually all classes of business and territories in building the optimal portfolio of risks.”
