Reinsurer’s COR improves to 87.6% over the quarter, from 8.9% in Q2 2012
Everest Re has reported a second quarter operating profit of $253.2m (£164.6m) – up 14% on the same period last year.
The Bermuda-based reinsurer also reported a 28% increase in net income to $275.6m for the quarter, up from $214.5m in 2012.
Everest achieved a reported combined operating ratio (COR) of 87.6% over Q2, a 1.4 percentage point improvement on the 2012 Q2 COR of 89%. The reinsurer also managed to increase gross written premium (GWP) by 39% to $1.26bn.
GWP boost
Everest said this premium growth was largely down to one quota share reinsurance contract. Excluding the effect of this contract, GWP rose 11%.
This was all despite catastrophe losses of $90m in the quarter, largely attributable to tornadoes and hailstorms in the US and flooding in Europe and Canada.
Chairman and chief executive Joseph V Taranto said: “Through six months, our annualised net income return on shareholders’ equity is 21%. We returned $500m to shareholders through share repurchases and dividends and grew book value per share, adjusted for dividends, by 5% despite falling bond prices and catastrophes.
“We believe we are well positioned to continue to increase shareholder value.”
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
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