Everest Re’s 2007 Q2 international premiums grow

Everest Re Group Ltd. has reported a 2007 Q2 net income of US$283 million, up from US$220 million in 2006 Q2.
Over the first six months of 2007, the company generated a net income of US$580 million for an annualized ROE of 22%. The reinsurers 2007 Q2 combined ratio was 89.2%, compared to 87.7% for the second quarter of 2006.
In a conference call, the companys CEO, Joe Taranto, said he was pleased the reinsurer was able to maintain flat gross written premiums in an era of general market decline.
Although it varies widely by product line and by country, reinsurance terms have weakened modestly, Taranto said. We continue to believe a reasonable return can be achieved on the better business.
The fact that we are a large, established player with great long-term relationships, terrific ratings and highly regarded employees around the world, continues to be a great advantage for us. And has so far helped us combat the marketplace decline.
Recent losses in the U.K. and Australia may mitigate some of the decline on property business but we do not expect they will produce material upward market corrections.
Taranto noted the companys international premium has not declined over the past six months. The reinsurers international segment includes Canada, the United Kingdom, Continental Europe, Latin America and Asia.
The U.S. insurance segment recorded gross written premium of US$162 million in 2007 Q2, down 17% compared to 2006 Q2. In contrast, the groups international segment reported a 2007 Q2 gross written premium intake of US $203 million, up 13% over the same period last year.
We are seeing opportunities in the international arena to pick up additional share on existing business and write new business, Everest Res vice president of investor relations, Craig Eisenacher, said in the conference call. Ceding companies have gravitated towards our strong ratings and reputation, particularly as some of our competitors have merged out of existence or received financial rating downgrades.