Everest Re (RE) Tops Q4 EPS by 56c

Everest Re (NYSE: RE) reported Q4 EPS of $3.20, $0.56 better than the analyst estimate of $2.64. Revenue for the quarter came in at $1.95 billion versus the consensus estimate of $2 billion.

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

• Gross written premiums for the quarter were $2.4 billion, an increase of 7% compared to the fourth quarter of 2018. Reinsurance premiums, excluding the impact of reinstatement premiums, increased 4%, mainly due to growth in treaty casualty. Insurance premiums were up 30% to $758.7 million, with balanced growth being generated across all major business lines.
• The combined ratio was 101.5% for the quarter, compared to 134.1% for the same period during 2018. Excluding catastrophe losses, reinstatement premiums and the favorable prior period loss development, the attritional combined ratio was 90.3% for the quarter, compared to 90.4% for the fourth quarter of 2018.
• Catastrophe losses, net of reinsurance and reinstatement premiums, amounted to $215.0 million in the quarter, primarily related to losses from Japanese Typhoon Hagibis in the amount of $190.0 million and Tornadoes in Dallas, Texas in the amount of $25.0 million.
• Prior year development for the quarter was reported in the amount of $19.2 million favorable, equal to 1.0 loss ratio point.
• Net investment income amounted to $146.1 million for the quarter including limited partnership income in the amount of $5.5 million.
• Net after-tax realized gains amounted to $61.1 million for the quarter, while net after-tax unrealized capital losses were $36.6 million.

Commenting on the Company’s results, President and Chief Executive Officer Juan C. Andrade said, “For the full year 2019, Everest produced net income of over $1 billion, the best result since 2014. On an ROE basis, this equates to a 12% return on average equity. These numbers speak to the strength and diversification of our business, and the strength of our underwriting and investment operations. Everest has a great franchise, a well-diversified platform and top talent. We are well positioned for the future.”

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
• Star Equity Holdings (STRR) Misses Q2 EPS by 8c