Everest Re Reports Q4 Operating Income of $353.5M, vs $331.5M in Q4 2014

February 4, 2016

Bermuda-based Everest Re Group Ltd. reported fourth quarter 2015 after-tax operating income available to common shareholders of $353.5 million, or $8.17 per diluted common share, compared to after-tax operating income of $331.5 million, or $7.28 per diluted common share, for the fourth quarter of 2014.

For the year ended December 31, 2015, after-tax operating income available to common shareholders was $1.1 billion, or $25.04 per diluted common share, compared to $1.1 billion or $24.71 per diluted common share, for 2014.

Net income available to common shareholders was $357.3 million, or $8.26 per diluted common share, for the fourth quarter of 2015, compared to net income of $340.1 million, or $7.47 per diluted common share, for the same period last year. Net income available to common shareholders was $977.9 million, or $22.10 per diluted common share, for the full year 2015, compared to $1.2 billion, or $25.91 per diluted common share, for 2014.

Commenting on the company’s results, president and chief executive officer, Dominic J. Addesso said, “While the market remains challenging, Everest continues to generate superior results with an underwriting combined ratio of 83.4 percent and an operating return on equity of 15 percent for the year. This is an impressive result considering the volatility in our financial markets. We remain focused on increasing value for our shareholders as we continue building out the Everest franchise.”

Other operating highlights for the four quarter and full year of 2015 included the following:

  • Gross written premiums for the quarter were $1.5 billion, an increase of 6 percent compared to the fourth quarter of 2014. For the full year, gross written premiums grew 2 percent to $5.9 billion. Eliminating the unfavorable effects of foreign currency fluctuations, total premiums were up 5 percent for the year. Worldwide reinsurance premiums, including the Mt. Logan Re segment, were flat on a constant dollar basis, while direct insurance premiums rose 26 percent in 2015.
  • The combined ratio was 76.4 percent for the quarter and 83.4 percent for the year, compared to 80.5 percent and 82.8 percent, respectively, for the same periods in 2014. The quarter benefited from net reserve releases of $34.7 million and a net reduction to prior year catastrophe loss estimates of $23.0 million, offset by $19.3 million for the southwest storms that occurred in the quarter. For the full year, catastrophe losses, net of reinstatement premiums, totaled $63.1 million. Excluding catastrophe losses, reinstatement premiums and favorable prior year loss development, the calendar year attritional combined ratio was 82.9 percent, compared to 82.0 percent for 2014.
  • Net investment income amounted to $110.7 million for the fourth quarter, compared to $134.1 million reported for the same period in 2014. Net investment income for the full year 2015 was $473.8 million, compared with $530.6 million for the full year 2014.
  • For the year, the after-tax operating income return on average adjusted shareholders’ equity was 15.0 percent and net income return on equity was 13.2 percent.

Source: Everest Re

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