Everest Group reports earnings for second quarter

Key metrics positive all-around

Everest Group reports earnings for second quarter

Insurance News

By Terry Gangcuangco

Global underwriter Everest Group has published its financial results for the second quarter of 2023.

Here’s how Everest performed in the period:

Metric

Q2 2023

Q2 2022

Net income

US$670 million

US$123 million

Operating income

US$627 million

US$386 million

Pre-tax underwriting income

US$401 million

US$240 million

Gross written premium (GWP)

US$4.18 billion

US$3.45 billion

Net investment income

US$357 million

US$226 million

 

Of the group’s GWP, US$2.8 billion came from reinsurance while the insurance segment contributed US$1.4 billion. Both segments saw increases in their GWP.

Everest president and chief executive Juan C. Andrade said: “Everest’s second quarter performance was outstanding as we leaned into the hard reinsurance market. We continued to grow premiums, while expanding margins, resulting in strong increases in quarterly underwriting profits, net income, and record operating income.

“We delivered an operating ROE (return on equity) of 21.8% and a record annualized total shareholder return in excess of 25%. Our lead market position in reinsurance, combined with best-in-class execution and dynamic capital deployment, enabled us to take advantage of favourable market conditions and drive significantly higher risk adjusted returns.

“We also continued to advance our diversified and disciplined global primary insurance franchise, which is benefitting from firming rates. In addition to the excellent underwriting profit in the quarter, we generated nearly US$360 million in net investment income with our well positioned portfolio.”

The CEO went on to cite the company’s “exceptional talent, diversified platform, and underwriting discipline,” which he claimed give Everest “significant firepower” to continue delivering on its objectives while capitalizing on abundant market opportunities.

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