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Loss ratio up 0.4% for Everest Re


February 9, 2016   by Canadian Underwriter


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Bermuda insurance carrier Everest Re Group Ltd. recently reported a 0.6-point deterioration in its combined ratio for 2015, while premiums earned increased 6%.

Everest Re, which owns Toronto-based Everest Insurance Company of Canada, released Feb. 3 its financial results for the calendar year and last three months of 2015.

Bermuda insurance provider Everest Re Group Ltd. reported premiums earned of US$5.48 billion in 2015

Premiums earned were $5.48 billion in 2015, up 6% from $5.17 billion in 2014. All figures are in United States dollars.

Everest Re Group writes both reinsurance and primary insurance. It reported a combined ratio of 83.4% in 2015, up 0.6 points from 82.8% in 2014. The loss ratio was 56.6% in 2015, up 0.4 points from 56.2% in 2014.

The combined ratio in the three months ending Dec. 31 was 76.4% in 2015, down 4.1 points from 80.5% during the same period in 2014. The loss ratio in the most recent quarter was 49.1%, a 2.5-point improvement over 52.4% in the same period in 2014.

“The quarter benefited from net reserve releases of $34.7 million and a net reduction to prior year catastrophe loss estimates of $23 million, offset by $19.3 million for the southwest storms that occurred in the quarter,” Everest Re stated in a release.

For calendar year 2015, Everest Re recorded premiums earned of $1.95 billion in U.S. reinsurance, $1.25 billion in international reinsurance, $822 million in Bermuda reinsurance, $1.267 billion in total insurance and $189 million from Mt. Logan Re.

Total revenues were $5.84 billion in 2015, up 0.86% from 5.79 billion in 2014. Net income dropped from $1.26 billion in 2014 to $1.07 billion in 2015. During the latest quarter, Everest Re reported net income of $392 million on revenues of $1.56 billion, compared to net income of $357 million on revenues of $1.52 billion in Q4 2014.

In Canada, Everest Re provides insurance for sports and leisure companies, construction, manufacturing and wholesale. Its coverages include environmental, directors’ and officers’ liability, professional liability and employment practices liability, among others.

Everest Re announced in September, 2015 that it plans to operate in the Lloyd’s market, with the creation of Everest Syndicate 2786.

In an earlier report from A.M. Best Company Inc., Everest Re ranked 10th, by gross reinsurance premiums written in 2014, both in life and non-life. When ranked by non-life reinsurance premiums only, Everest Re placed seventh, behind Munich Re, Swiss Re, Berkshire Hathaway, Hannover Re, SCOR and the Lloyd’s market.


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