Last year’s loss reversed despite low investment return

Everest Re reported net income for the year at $807.0m, turning around the previous year’s net loss of $18.8m.

After-tax operating income was $763.7m, up from $562.7m in 2008 and its combined ratio fell from 95.6% to 89.6% with its reinsurance combined ratio down to 84.8% from 92.3%.

Financial highlights (2008 in brackets)

  • Gross written premiums $4,128,955 ($3,678,139)
  • Net written premiums $3,929,761 ($3,505,213)
  • Net premiums earned $3,894,098 ($3,694,301)
  • Reinsurance Gross written premiums $3,286,391 ($2,906,341)
  • Pre-tax investment income $547,793 ($565,887)
  • Net pre-tax catastrophe losses $65,166 ($307,198)
  • Net income/loss $806,989 (-$18,758)
  • Operating income $763,707 ($562,732)
  • Combined ratio 89.6% (95.6%)
  • Reinsurance Combined ratio 84.8% 92.3%

Chairman and chief executive officer, Joseph Taranto said, "We are pleased to have grown premium 12%, achieved a 15% return on equity and increased book value per share by 27% in 2009. Our performance demonstrates the strength of the Everest franchise."

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