Everest Re (RE) Reports Q3 Revenues Above Estimates

Everest Re (NYSE: RE) reported Q3 EPS of $3.39, $1.18 better than the analyst estimate of $2.21. Revenue for the quarter came in at $2.42 billion versus the consensus estimate of $1.92 billion.

Operating highlights for the third quarter of 2019 included the following:

• Gross written premiums for the quarter were $2.4 billion, an increase of 9% compared to the third quarter of 2018. Direct insurance premiums were up 29%, from third quarter 2018, to $666.6 million, continuing with the diversified growth trends noted in recent years. Worldwide reinsurance premiums increased 3% to $1.7 billion for the third quarter of 2019 compared to the third quarter of 2018.
• The combined ratio was 101.4% for the quarter compared to 100.0% in the third quarter of 2018. There were $280.0 million of current year catastrophe losses, net of reinsurance and reinstatement premiums, incurred in the third quarter of 2019 which were related to Hurricane Dorian and Typhoon Faxai.
• Net investment income increased 12% for the quarter to $181.1 million.
• Cash flow from operations was $1,486.9 million for the nine months ended September 30, 2019 compared to $543.6 million for the same period in 2018.
• The Company did not repurchase any shares during the quarter but has repurchased 114,633 shares during 2019 at a total cost of $24.6 million. The repurchases were made pursuant to a share repurchase authorization, provided by the Company’s Board of Directors, under which there remains 1.3 million shares available.
• Shareholders’ equity ended the quarter at $9.0 billion compared to $7.9 billion at year end 2018. Book value per share was up from $193.37 at December 31, 2018 to $220.28 at September 30, 2019.

Commenting on the Company’s results, President and Chief Executive Officer Dominic J. Addesso said: “Everest generated an impressive 13% annualized net income return on equity for the 9 months year to date. Our business and balance sheet are built to provide meaningful protection for our clients, as was the case this quarter with the previously announced catastrophe losses from Hurricane Dorian and Typhoon Faxai. Everest’s mix of business between reinsurance and insurance, supported by robust investment income, results in a strategic balance that has contributed to our longevity and success over many years.”

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

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Evogene chairman to address dissident shareholders on results call
• SanDisk upgraded at JPMorgan after investor day; shares climb