July 25, 2017 by Canadian Underwriter
Everest Re Group Ltd. reported Monday catastrophe losses, net of reinsurance, of $53.5 million in the three months ending June 30, with a 4.6-point improvement in its Q2 combined ratio to 90.5%. All figures are in United States dollars.
Hamilton, Bermuda-based Everest Re’s combined ratio in the second quarter of 2016 was 95.1%, the company noted.
Everest Re reported “current quarter catastrophe losses from the South African (Knysna) fires, Colorado hailstorms, and Peru flooding” adding the “net impact” of those losses, after reinstatement premiums and taxes, was $46.6 million.
With corporate offices in Liberty Corner, N.J., Everest Re also has Canadian offices and writes both reinsurance and commercial primary insurance. The breakdown in 2016 of its gross written premiums were 70% reinsurance and 30% insurance, Everest Re reported earlier.
Everest Re reported premiums earned of $1.37 billion in the latest quarter, compared to $1.29 billion in the three months ending June 30, 2016.
“Worldwide, reinsurance premiums were up 14%, with growth coming from the new crop reinsurance program, increased shares on property pro-rata treaties, and growth in financial lines business,” Everest Re said July 24, 2017 of its Q2 results for 2017 and 2016. “Insurance premiums were up 25%, quarter over quarter, with continued growth on new initiatives.”
Everest Re reported earlier that effective Aug. 24, 2016, it sold Heartland Crop Insurance Company, a subsidiary that is a managing agent for crop insurance, to CGB Diversified Services Inc.
Excluding the Heartland Crop business that was sold in 2016, “the insurance segment premium was up 41%, quarter over quarter,” Everest Re said July 24, 2017.
Formed in 1973, Everest Re was a subsidiary of The Prudential Insurance Company of America until Prudential sold its interest in 1995 in an initial public offering.
Everest Insurance Company of Canada is licensed to write property and casualty insurance in all provinces.
Of its international segment, Everest Re reported earlier that gross written premiums from the Canadian branch in 2016 were $124.6 million “and consisted of 51.1% of excess property business, 27.1% of excess casualty business, 13.6% of pro rata casualty business and 8.2% of pro rata property business.” Of the $124.6 million in GWP from the Canadian branch, “83.9% consisted of treaty reinsurance, while 16.1% was facultative reinsurance,” Everest Re reported in February of its 2016 results.
At the time, the carrier reported that its Everest Specialty Commercial unit wrote $547.9 million in premiums in 2016, of which $74.1 million was from the Canadian office.
Commercial primary coverages in Canada include property, liability, inland marine, errors and omissions, professional liability, environmental, construction and insurance for special events and venues, such as concerts, sporting events, galas, trade shows and climbing walls, among others.
Company-wide, Everest Re reported July 24 that its investment income was $134.51 million in the quarter ending June 30, 2017, compared to $132.7 million in the same period of 2016. Total revenues were $1.53 billion in the most recent quarter, compared to $1.43 billion in Q2 2016.
Q2 claims and expenses were $1.255 billion this year, compared to $1.241 billion in Q2 2016.
Net income was $245.7 million in Q2 2017, up from $155.7 million in Q2 2016.