An active catastrophe quarter and volatile market conditions drove a net operating loss of $205 million and a net loss of $319 million in the third quarter for Everest Re Group Ltd.

That compares with a third quarter 2021 net operating loss of $53 million, and net loss of $73 million.

A pre-tax underwriting loss of $367 million included $730 million of pre-tax catastrophe losses net of estimated recoveries and reinstatement premiums.

The losses were primarily from Hurricane Ian and other events including European hailstorms, Hurricane Fiona and Typhoon Nanmadol.

The Bermudian-based global re/insurer said it had recorded year-to-date net operating income of $587 million, net income of $101 million, and underwriting income of $109 million.

Everest reported $3.7 billion in gross written premium with year over year growth of 6.3 per cent in constant dollars for the group, 13.1 per cent in constant dollars for insurance, and 3.4 per cent in constant dollars for reinsurance.

It recorded combined ratios of 112 per cent for the group, 115 per cent for reinsurance and 103.5 per cent for insurance -- elevated due to catastrophe losses in the quarter.

The company had strong attritional combined ratios of 87.6 per cent for the group, 86.8 per cent for reinsurance and 89.8 per cent for insurance, which is a record for that segment.

Net investment income was $151 million, driven by stronger fixed-income returns as new money yields continued to improve partially offset by volatile equity markets and the lag in private equity reporting, the company said.

In the reinsurance segment, gross written premiums were $2.6 billion for the quarter, versus $2.5 billion a year ago.

The quarter includes $110 million of reinstatement premiums, versus $60 million a year ago.

Growth was driven by casualty lines and continued international expansion offset by targeted reductions in property and headwinds from the strong dollar.

The company reported pre-tax catastrophe losses of $620 million net of estimated recoveries and reinstatement premiums, primarily driven by Hurricane Ian (compared with $555 million a year ago).

In the insurance segment, gross written premiums were $1.1 billion, a 13.1 per cent increase year over year in constant currency (11.9 per cent increase when adjusting for FX), driven by balanced and strong diversified growth across most lines of business and geographies.

The attritional combined ratio of 89.8 per cent, a 50-basis point improvement compared to 90.3 per cent in 3Q 2021, is the best in the segment’s history.

Everest had operating cash flow for the quarter of $1.1 billion, which is flat versus the third quarter a year ago.

Juan C Andrade, Everest Re group president and CEO, said: “The third quarter’s heightened risk environment, including global catastrophe events and continued global economic uncertainty further underscored the strength of Everest’s business and commitment to support our customers with solutions vital to navigating this turbulent period in history.

“Everest’s diversification strategy and underwriting discipline were key to mitigating our exposure to one of the industry’s largest hurricane losses in US history. With our well-defined strategy, we’re poised to take advantage of the hardening market, focused on segments with the best risk-adjusted returns.

“Despite the challenging macroeconomic environment, both underwriting businesses delivered sub-90 attritional combined ratios and we continue to make an underwriting, operating and net income profit on a year-to-date basis.

“We continued to grow and diversify across geographies, businesses and product lines with top talent leading our platform. We are focused on executing our strategic plan as we continue to build the company for the long-term.”