Everest Re group has reported a third quarter net loss of $73.5 million, having previously achieved an income of $243.1 million in the prior year quarter.
The group also reported a net operating loss of $52.6 million, compared to a $97.0 million income achieved in the same period last year.
An underwriting loss of $323.4 million is inclusive of catastrophe losses from Hurricane Ida and European Floods and amount to $635 million net of recoveries and reinstatement premiums ($555 million in reinsurance and $80 million in Insurance).
The reinsurance business of Everest Re saw premiums grow to 19% year-over-year to $2.5 billion.
This growth is reported to have been driven by continued partnership with core clients and Everest’s position as a preferred reinsurance platform.
All target classes of business and geographies saw growth in the quarter, with Everest’s reinsurance portfolio being reported to have benefited from improved economic conditions and strong rate performance by its cedants.
Everest Re says the attritional combined ratio for the quarter of 87.1% reflects the deliberate and targeted shaping of its portfolio,
Reinsurance cat losses for the quarter totalled $555 million net of recoveries and reinstatement premiums, driven by Hurricane Ida and the Berndt flooding event in Europe.
Everest Insurance reported record quarterly premium growth of 43% driving over $1.0 billion in gross written premium for a second consecutive quarter.
This growth in Q3 was driven by increasingly favourable economic conditions, new business growth, and the combined impact of strong renewal retention and a continuing favourable rate environment.
“During the third quarter of 2021, Everest made significant progress toward the strategic plan objectives detailed in the June investor day presentation,” said Everest Re Group President & CEO Juan C. Andrade.
“We achieved outstanding top line premium growth across both of our insurance and reinsurance businesses, continued to improve the attritional profitability for our Insurance Division, remained focused on risk appetite discipline and the diversification of our business, demonstrated strong expense management, delivered excellent investment income results, opportunistically reduced our cost of capital, and returned capital to our shareholders.
“Despite the high frequency and severity of the natural catastrophe activity in the quarter, we also benefited from the de-risking of the CAT portfolio and we remain on track to achieve our total shareholder return objective.
“We continue to consistently demonstrate our ability to relentlessly execute against our plans regardless of the external environment.”
