Everest Group posts $509m Q3 net income
Property, casualty and specialty insurer and reinsurer, Everest Group, had more than half a billion dollars in net income for the third quarter, and total shareholder return of 19.4 per cent annualised.
The $509 million compares with the $678 million stated for quarter three in 2023.
The combined ratio was 93.1 per cent for the quarter and 90.8 per cent for the first nine months.
Net investment income improved from $406 million for the quarter in 2023 to $496 million for this year’s comparable period.
Everest president and chief executive Juan Andrade said: “Everest delivered another successful quarter with strong operating income driven by solid underwriting results and healthy investment income.
“These results reflect our underwriting discipline and prudent risk management, which position the company to generate leading returns despite another above-average catastrophe year for the industry.
“We are delivering an annualised total shareholder return and operating return on equity of approximately 19 per cent.”
He said: “As a lead reinsurance market, we grew in attractive lines of business with the highest expected returns. We are leveraging our franchise value in the continuing favourable property market conditions heading into the January 1 renewals.
“Additionally, we continued to shape our global primary insurance portfolio by growing strong double-digits in more attractive property and specialty lines, while remaining conservative across certain casualty lines in North America. As we approach the final stretch of the year, we remain focused on executing our strategy.”
The company said that the pre-tax net catastrophe loss estimated for Hurricane Milton should be in the range of $300 million to $400 million for the fourth quarter 2024, net of estimated recoveries and reinstatement premiums.
Everest's loss estimate is based on an insured industry loss range of $25 to $35 billion.
The net income for the first nine months is placed at about $1.97 billion, ahead of the same period in 2023 by more than $250 million.
Everest had $4.4 billion in gross written premium for the quarter, with year-over-year growth of 0.6 per cent for the group, including 1.7 per cent higher for reinsurance, and 2.1 per cent lower for insurance on a comparable basis.
There was strong double-digit growth in property and specialty lines across both segments which was partially offset by reductions in certain casualty lines.
– Total Shareholder Return of 19.4 per cent annualised; annualised year-to-date 17.8 per cent Net Income ROE and 18.7 per cent Net Operating Income ROE
– Net Income of $509 million; Net Operating Income of $630 million driven by attritional underwriting margin improvement and solid net investment income generation
– $4.4 billion in gross written premium with year-over-year growth of 0.6 per cent for the Group, 1.7 per cent for Reinsurance, and -2.1 per cent for Insurance on a comparable basis; Strong double-digit growth in property and specialty lines across both segments was partially offset by reductions in certain casualty lines
– Combined ratios of 93.1 per cent for the Group, 91.8 per cent for Reinsurance and 97.1 per cent for Insurance
– Attritional combined ratios of 85.8 per cent for the Group, 83.5 per cent for Reinsurance and 92.6 per cent for Insurance
– Pre-tax underwriting income of $272 million for the Group, $245 million for Reinsurance, and $27 million for Insurance
– $279 million of pre-tax catastrophe losses net of recoveries and reinstatement premiums versus $170 million in Q3 2023
– Net investment income improved to $496 million versus $406 million in the prior year third quarter, driven by a larger asset base as well as strong core fixed income investment returns
– Strong operating cashflow for the quarter of $1.7 billion versus $1.4 billion in the third quarter 2023
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