The Bermuda-based Everest Re Group announced that it expects to incur net catastrophe losses of approximately $245 million, after reinstatement premiums and taxes, for the quarter.
“This loss provision includes an estimate for the floods in Thailand, with losses now expected to be $145 million, after reinstatement premiums and taxes,” the company said. “This is above the high end of the range previously announced and implies a market loss in excess of $15 billion.”
The bulletin also noted that the fourth quarter catastrophe loss estimate “includes provisions for reported upward movements on prior events that occurred in the year. This includes the Japan earthquake, as previously announced, and newly reported updates to the New Zealand earthquake estimate from one large cedant.
“Due to the significant number of complex events this year and the impact this had on the estimation process, the quarter’s loss estimate also includes an additional $50 million ($32.5 million after-tax) of catastrophe reserves, above the current point estimates, for all 2011 events.”
Chairman and CEO Joseph V. Taranto commented: “2011 catastrophe losses have generated meaningful market price corrections, which continued through January renewals. In order to fully realize these benefits in 2012 we have taken a cautious approach to reserving for these events as we close the year.
“Despite these charges our surplus is expected to remain relatively unchanged for the quarter, which positions us well for 2012. We are extremely pleased with our current portfolio and anticipate strong earnings in 2012.”
Everest will release its fourth quarter and full year 2011 financial results on Wednesday, February 8, 2012 after the close of the market and a conference call will take place the following day, February 9, 2012 at 10:30 a.m. Eastern Standard Time.
Source: Everest Re
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