Everest Re Group Announces Net Reserve Adjustments for Second Quarter 2018
July 19 2018 - 5:55PM
Business Wire
Everest Re Group, Ltd. (NYSE:RE) announced today that it expects
to report a charge for net reserve adjustments of approximately
$250 million, after tax, for the second quarter of 2018. These
reserve adjustments are related to prior year catastrophe events
and include a partial offset from favorable prior year development
of non-catastrophe reserves.
The prior year catastrophe adjustments primarily relate to the
2017 hurricane events – Harvey, Irma and Maria. The increase in
estimates was mostly driven by re-opened claims reported in the
second quarter and loss inflation from higher than expected loss
adjustment expenses and, in particular, their impact on aggregate
covers.
In addition, current year weather related events are expected to
result in a second quarter charge of approximately $25 million,
after tax.
Everest expects to report net income for the second quarter of
2018.
Commenting on these adjustments, Dom Addesso, the Company’s
President and Chief Executive Officer, said “Losses from events
like the industry experienced in 2017 are difficult to estimate.
The number of re-opened claims and the extraordinary surge in LAE
were well above the market expectation. Nevertheless, it is helpful
to keep this loss development in context. We are in the business of
absorbing volatility and over the last five years we have generated
over $3.5 billion in profits from our property catastrophe
portfolio. Our portfolio in 2018 is positioned to deliver even
better margins. Additionally, the non-cat reinsurance portfolio and
the insurance book continue their favorable trends and should
produce an excellent result in the second half of the year.”
This news release contains forward-looking statements within the
meaning of the U.S. federal securities laws. We intend these
forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements in the U.S. Federal
securities laws. These statements involve risks and uncertainties
that could cause actual results to differ materially from those
contained in forward-looking statements made on behalf of the
Company. These risks and uncertainties include the impact of
general economic conditions and conditions affecting the insurance
and reinsurance industry, the adequacy of our reserves, our ability
to assess underwriting risk, trends in rates for property and
casualty insurance and reinsurance, competition, investment market
fluctuations, trends in insured and paid losses, catastrophes,
regulatory and legal uncertainties and other factors described in
our latest Annual Report on Form 10-K. The Company undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180719005967/en/
Everest Global Services, Inc.Craig Howie, 908-604-3169Executive
Vice President and Chief Financial Officer
Everest Re (NYSE:RE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Everest Re (NYSE:RE)
Historical Stock Chart
From Apr 2023 to Apr 2024