Everest Re Group announces preliminary 2020 financial results

As for the quarterly numbers, the Bermuda-headquartered business noted: “Everest is estimating pre-tax net catastrophe losses for the fourth quarter 2020 of US$70 million, net of reinsurance and reinstatement premiums.

“The estimate includes the impact of Hurricanes Delta, Zeta, Eta, Iota, and the Queensland Australia hailstorm. These catastrophe losses include US$60 million in the company’s reinsurance segment and US$10 million in the insurance segment.”

The firm is looking at approximately US$76 million in pre-tax net COVID-19 losses for the quarter. The expected sum, according to Everest, is primarily for third-party lines.

The group went on to elaborate: “This amount includes US$56 million in the company’s reinsurance segment and US$20 million in the insurance segment and is in addition to the US$435 million of pandemic losses estimated in the first nine months of 2020.

“For full-year 2020, the total pandemic loss provision is US$511 million – over 80{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} is IBNR (incurred but not reported).”

Everest also announced that it is increasing prior year loss reserves by US$400 million, following a comprehensive annual review of all reinsurance and insurance reserves.

“We remain focussed on the relentless execution of our strategies to create a diversified portfolio that achieves superior risk-adjusted returns and value to our shareholders and customers,” stated president and chief executive Juan C. Andrade, who believes their “decisive” reserving actions enhance what is an “already strong” balance sheet.

“We have proactively acted on the affected portfolios and we have confidence in our in-force book,” added the CEO. “We are bullish about our future and the earnings generating power of our franchise.”

Citing Everest’s growth and improved underlying results, Andrade stressed that the company is well positioned to succeed in any market condition.