Everest Re Group Announces Catastrophe Loss Estimate for First Quarter 2018
April 11 2018 - 4:23PM
Business Wire
Everest Re Group, Ltd. (NYSE:RE) today announced that it expects
to incur $100 million of estimated catastrophe losses, net of
reinsurance recoverables and reinstatement premiums, in the first
quarter of 2018, largely arising from the California wildfires and
related events.
A series of wildfires burned across many areas of California in
October and December of 2017, resulting in widespread damage to
homes and businesses. The Company’s initial estimate of these
losses in the fourth quarter of 2017 was based on the best
available information at the time, including modeled data, industry
loss estimates, which ranged from $8 billion to $10 billion, and
preliminary client discussions. Industry loss estimates for both
the Northern and Southern California events have risen dramatically
since year-end and are now projected at over $13 billion. This
increase in the industry loss estimate is consistent with the
revised reports of escalated claims costs we have noted with
several of our clients, prompting the change in the Company’s
estimate in the quarter.
Additionally, the Company notes a change in its reporting of
operating income, a non-GAAP financial measure. Historically
operating income represented net income, excluding realized capital
gains and losses and the tax impact related to the enactment of the
Tax Cuts and Jobs Act in 2017. Starting in first quarter 2018, the
Company will further adjust operating income to exclude foreign
exchange gains and losses as it believes the impact of foreign
currency movements on income is not indicative of the performance
of the underlying business in a particular period.
Everest Re Group, Ltd. is a Bermuda holding company that
operates through the following subsidiaries: Everest Reinsurance
Company provides reinsurance to property and casualty insurers in
both the U.S. and international markets. Everest Reinsurance
(Bermuda), Ltd., including through its branch in the United
Kingdom, provides reinsurance and insurance to worldwide property
and casualty markets and reinsurance to life insurers. Everest
Reinsurance Company (Ireland), dac. provides reinsurance to
non-life insurers in Europe. Everest Insurance® refers to the
primary insurance operations of Everest Re Group, Ltd., and its
affiliated companies which offer property, casualty and specialty
lines insurance on both an admitted and non-admitted basis in the
U.S. and internationally. The Company also operates within the
Lloyd's insurance market through Syndicate 2786. In addition,
through Mt. Logan Re, Ltd., the Company manages segregated
accounts, capitalized by the Company and third party investors that
provide reinsurance for property catastrophe risks. Additional
information on Everest Re Group companies can be found at the
Group’s web site at www.everestregroup.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20180411006375/en/
Everest Global Services, Inc.Elizabeth B. Farrell,
908-604-3169Vice President, Investor Relations
Everest Re (NYSE:RE)
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