Everest Re Group reported second quarter 2014 net income of $290.2 million, or $6.26 per diluted common share, compared to net income of $275.6 million, or $5.56 per diluted common share, for the second quarter of 2013.
After-tax operating income, which excludes realized capital gains and losses, was $250.8 million, or $5.41 per diluted common share, for the period, compared to after-tax operating income of $253.2 million, or $5.10 per diluted common share in Q2 2013.
For the six months ended June 30, 2014, net income was $584.1 million, or $12.46 per diluted common share, compared to $660.0 million, or $13.09 per diluted common share, for the first six months of 2013. After-tax operating income, excluding realized capital gains and losses, was $531.7 million, or $11.35 per diluted common share, compared to $554.2 million or $10.99 per diluted common share, for the same period in 2013.
President and CEO Dominic J. Addesso commented: “Everest continues to generate strong earnings, despite a challenging marketplace. We are seeing select market opportunities, which is driving top-line growth and producing excellent underwriting margins and double digit returns on equity. This is driving growth in shareholder value with book value per share, adjusted for dividends, up over 10 percent through the first six months of the year. We continue to strategically maneuver our underwriting portfolio to find the best opportunities and look forward to continuing this strong pace through the remainder of the year.”
The earnings report also listed the following operating highlights for the period:
— Gross written premiums increased 12 percent to $1.4 billion compared to the second quarter of 2013.
— Worldwide, reinsurance premiums, including the Mt. Logan Re segment, were up 16 percent while insurance premiums were flat, quarter over quarter.
— Growth opportunities in U.S. property and specialty lines continue to drive the growth in the reinsurance book.
— The combined ratio for the quarter was 84.7 percent compared to 87.6 percent in the second quarter of 2013.
— Excluding catastrophe losses, reinstatement premiums, and prior period loss development, the current quarter attritional combined ratio was 81.4 percent compared to 80.2 percent in the same period last year.
— Catastrophe losses amounted to $45.0 million in the quarter, arising from the Chile earthquake that occurred during the quarter and late reported losses from severe snowstorms in Japan during February.
— The net impact of these losses, after reinstatement premiums, taxes, and non-controlling interest, was $32.1 million.
— Net investment income for the quarter was $131.2 million, including limited partnership income of $6.2 million.
— Net after-tax realized and unrealized capital gains totaled $39.4 million and $88.1 million, respectively, for the quarter.
— Cash flow from operations was $223.3 million compared to $179.6 million for the same period in 2013.
— For the quarter, the annualized after-tax operating income1 return on average adjusted shareholders’ equity2 was 14.6 percent.
— During the quarter, the Company repurchased 475,092 of its common shares at an average price of $157.78 and a total cost of $75.0 million. Subsequent to the quarter, the Company purchased an additional 64,827 shares for a total cost of $10.3 million. Through the date of this release, the Company had repurchased 2.2 million of its common shares for a total cost of $335.2 million. The repurchases were made pursuant to a share repurchase authorization, provided by the Company’s Board of Directors, under which there remains 2.3 million shares available.
— Shareholders’ equity ended the quarter at $7.3 billion. Book value per share increased 9.3 percent from $146.57 at December 31, 2013 to $160.27 at June 30, 2014.
Source: Everest Re Group