Everest Re Group suffers net income fall
Catastrophe and COVID-19 losses both played a part
Everest Re Group suffers net income fall
INSURANCE NEWS
By Terry Gangcuangco
11 Feb 2021

Bermuda-headquartered global (re)insurance provider Everest Re Group remained profitable in 2020, albeit at a lower level compared to the previous year.

According to Everest, its full-year net income amounted to $514.2 million. The figure is about half of the company’s 2019 net income, which stood at more than $1 billion. Net operating income in the past year, meanwhile, was $300.1 million. The corresponding metric in 2019 was higher, at $872.4 million.

In terms of catastrophe and COVID-19 losses for 2020, here’s how Everest breaks down the numbers:

Segment

Pre-tax net catastrophe losses

Pre-tax net COVID-19 losses

Insurance

$68 million          

$104 million

Reinsurance

$357 million

$407.1 million

Group

$425 million

$511.1 million

 

Commenting on the results, Everest president and chief executive Juan C. Andrade stated: “We are relentlessly executing our strategies from a position of strength in this robust market as evidenced by 2020 growth in gross written premiums of 15% and net written premiums of 17% and improvement in underlying underwriting profitability.

“Our attritional combined ratio improved approximately one point to 87.5% versus the prior year, with our insurance segment improving 2.3 points to 94.2%. Despite the $511 million pandemic loss provision and a $400 million prior accident year reserve strengthening, we delivered $300 million in operating income and $514 million in net income providing a return on equity of 5.8%.”

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