Everest Re (RE) Tops Q3 EPS by 26c, Beats on Revenues

Everest Re (NYSE: RE) reported Q3 EPS of ($15.73), $0.26 better than the analyst estimate of ($15.99). Revenue for the quarter came in at $1.6 billion versus the consensus estimate of $1.48 billion.

• Gross written premiums for the quarter were $2.0 billion, an increase of 15% compared to the third quarter of 2016. Worldwide, reinsurance premiums were up 25%, but adjusting for the high level of reinstatement premiums and the modest impact of foreign currency movements in the quarter, premiums in this division were up 13%. The growth in the reinsurance book is attributable to the new crop reinsurance program, growing premium from financial lines business, and increased shares on existing business. Insurance premiums were down 10%, quarter over quarter, but excluding the HCI crop business sold in 2016, premium was up 30%, with continued growth on new initiatives.
• The combined ratio for the quarter was 163.6% compared to 85.6% in the third quarter of 2016. Excluding catastrophe losses, reinstatement premiums, and nominal prior period loss development, the current quarter attritional combined ratio was 85.5% compared to 84.4% in the same period last year.
• Net investment income was up 12% for the quarter to $137.0 million.
• Other expense largely represents an after-tax foreign exchange loss of $43.5 million, or $1.07 per common share, driven by the revaluation of foreign currency loss reserves and the strengthening of certain currencies against the U.S. dollar. The offsetting foreign exchange impact on the assets that are held in these same currencies is shown in Other Comprehensive Income.
• Net after-tax realized capital gains amounted to $28.2 million and net after-tax unrealized losses were $11.2 million for the quarter.
• Cash flow from operations was $409.9 million compared to $277.2 million for the same period in 2016.
• Shareholders’ equity ended the quarter at $8.0 billion, down slightly from year end 2016. Book value per share was down from $197.45 at December 31, 2016 to $194.05 at September 30, 2017.

For earnings history and earnings-related data on Everest Re (RE) click here.

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