Everest Re Reports Q2 Net Income of $209.1M; Down from $290.2M in Q2 2014

July 28, 2015

Bermuda-based Everest Re Group Ltd. reported second quarter 2015 net income of $209.1 million, or $4.68 per diluted common share, compared to net income of $290.2 million, or $6.26 per diluted common share, for the second quarter of 2014. After-tax operating income, excluding realized capital gains and losses, was $224.5 million, or $5.03 per diluted common share, for the second quarter of 2015, compared to after-tax operating income1of $250.8 million, or $5.41 per diluted common share, for the same period last year.

For the six months ended June 30, 2015, net income was $532.0 million, or $11.88 per diluted common share, compared to $584.1 million, or $12.46 per diluted common share, for the first six months of 2014. After-tax operating income, excluding realized capital gains and losses, was $554.4 million, or $12.38 per diluted common share, compared to $531.7 million or $11.35 per diluted common share, for the same period in 2014.

Commenting on the company’s results, president and chief executive officer, Dominic J. Addesso said, “Through the first six months, Everest generated over $550 million of operating earnings, providing an annualized operating return on equity of 15 percent. These are solid results, particularly when considering the headwinds of a market that remains quite challenging. Our dynamic and responsive approach to the market, however, has provided unique opportunities and enabled us to continue to deliver superior returns to our shareholders.”

Operating highlights for the second quarter of 2015 included the following:

  • Gross written premiums decreased 11 percent to $1.3 billion compared to the second quarter of 2014, but eliminating the unfavorable effects of foreign currency fluctuations, premiums were actually down 8.5 percent. Worldwide, reinsurance premiums, including the Mt. Logan Re segment, were down 13 percent, on a constant dollar basis, while insurance premiums, excluding crop business, were up 20 percent, quarter over quarter.
  • The combined ratio for the quarter was 86.3 percent compared to 84.7 percent in the second quarter of 2014. Excluding catastrophe losses, reinstatement premiums, and prior period loss development, the current quarter attritional combined ratio was 84.0 percent, compared to 81.4 percent in the same period last year. The increase in the attritional ratio was primarily driven by a number of smaller loss events, not rising to the level of what would be classified as a catastrophe loss.
  • Catastrophe losses amounted to $30.0 million in the quarter, and included losses from the Northern Chile and New South Wales storm events that occurred during the quarter. The net impact of these losses, after reinstatement premiums, taxes, and non-controlling interest, was $22.6 million.
  • Net investment income for the quarter was $125.0 million, including limited partnership income of $6.7 million.
  • Net after-tax realized and unrealized capital losses totaled $15.4 million and $123.7 million, respectively, for the quarter.
  • Cash flow from operations was $227.9 million, compared to $223.3 million for the same period in 2014.

Source: Everest Re

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