Everest Re Reports Q3 Net Income of $88.6M, Compared to $274.9M in Q3 2014

October 27, 2015

Everest Re Group Ltd. reported third quarter 2015 after-tax operating income available to common shareholders of $200.2 million, or $4.53 per diluted common share, compared to after-tax operating income of $280.5 million, or $6.12 per diluted common share, for the third quarter of 2014.

Net income available to common shareholders was $88.6 million, or $2.00 per diluted common share, for the third quarter of 2015, compared to net income of $274.9 million, or $6.00 per diluted common share, for the same period last year, said the Bermuda-based company.

For the nine months ended September 30, 2015, after-tax operating income available to common shareholders was $754.6 million, or $16.92 per diluted common share, compared to $812.2 million or $17.46 per diluted common share, for the first nine months of 2014. Net income available to common shareholders through nine months of 2015 was $620.6 million, or $13.92 per diluted common share, compared to $859.0 million, or $18.47 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, “We are pleased with the results that Everest has achieved thus far this year considering the challenging market dynamics – both on the underwriting and investment fronts. After-tax operating income totaled $755 million through the first nine months of the year, despite a number of industry events, leading to a 14 percent annualized operating return on equity and a 4 percent growth in book value per share. Premium, on a constant dollar basis, was up 4 percent for the year, as we continue to seek out opportunities for profitable growth.”

Other operating highlights for the third quarter include the following:

  • Gross written premiums of $1.7 billion, an increase of 3 percent compared to the third quarter of 2014. Eliminating the unfavorable effects of foreign currency fluctuations, total premiums were actually up 6 percent, the company said. Worldwide reinsurance premiums, including the Mt. Logan Re segment, were down 2 percent, on a constant dollar basis, while insurance premiums were up 34 percent, quarter over quarter.
  • The combined ratio for the quarter was 89.0 percent compared to 85.7 percent in the third quarter of 2014. During the quarter, the company had incurred losses of $40 million for the Chile earthquake and $60 million for the Port of Tianjin explosion in China. Excluding these events and related reinstatement premiums, the current quarter’s normalized attritional combined ratio was 82.1 percent, compared to 83.7 percent for the same period last year.
  • Net investment income for the quarter was $115.5 million, down from last year, largely due to lower limited partnership income.
  • Net after-tax realized and unrealized capital losses amounted to $111.7 million and $66.5 million, respectively, for the quarter.
  • Cash flow from operations was $304.5 million compared to $335.5 million for the same period in 2014.
  • During the quarter, the company repurchased 1.1 million of its common shares at an average price of $175.81 and a total cost of $200.0 million. For the year, the company repurchased 1.8 million of its common shares for a total cost of $325.0 million. The repurchases were made pursuant to a share repurchase authorization, provided by the company’s board of directors, under which there remains 4.5 million shares available.

Source: Everest Re Group Ltd.

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