Everest Re Announces Third Quarter Catastrophe Loss Estimate of $900 Million After Tax
October 12 2017 - 5:20PM
Business Wire
Everest Re Group, Ltd. (NYSE:RE) announced today that it expects
to incur pretax catastrophe losses, net of reinsurance and
reinstatement premiums of $1.2 billion, with a net economic impact
of $900 million after taxes. This estimate includes losses from
Hurricanes Harvey, Irma, and Maria, as well as estimated losses
from the earthquake events in Mexico.
The Company’s view of its losses from these events assumes an
aggregate industry loss in the range of $100 billion for the
quarter and is based on a combination of modeled information,
underwriter analysis, preliminary client discussions, and a profile
of exposed limits within the affected regions. Losses are arising
from both the reinsurance and insurance segments. There is
considerable uncertainty in these estimates and it is expected that
it will be several months before relative clarity emerges with
respect to the underlying losses from these multiple events.
However the Company advises that it has significant unused
retrocessional capacity, including aggregate protections, which
provide coverage above the estimated levels.
Everest is the reinsurance industry’s leading sponsor of
catastrophe bonds, through the Kilimanjaro Re series, with $2.8
billion of multi-year collateralized capacity for specific perils
as well as aggregate protection for losses arising from named
territories, including Texas, Florida, and Puerto Rico. In
addition, Everest’s capital market facility, Mt. Logan Re,
maintains close to $1 billion of assets under management that
further supports the Company’s catastrophe exposures. These
alternative capital structures, placed alongside a number of
additional protections, including traditional reinsurance and
retrocession coverage has provided protection against the recent
catastrophe events.
Commenting on the devastation caused by these recent events, Dom
Addesso, the Company’s President and Chief Executive Officer, said,
“Our thoughts are with the people of Texas, Florida, Puerto Rico,
the Caribbean and Mexico, as they begin the recovery process. We
have long established relationships in these markets, forged over
many decades, and together with our clients will stand in support
of these efforts. Our robust balance sheet and strong risk
management program provides assurance to our clients that Everest
will deliver when it matters most.”
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: http://www.businesswire.com/news/home/20171012006483/en/
Everest Global Services, Inc.Elizabeth B. Farrell,
908-604-3169Vice President, Investor Relations
Everest Re (NYSE:RE)
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