Everest Re’s Q1 profits climb

Everest Re reported booming reinsurance rates and renewals boosting its Q1 profits by 40% to $108.6m.

Financial highlights (2008 Q1 in brackets)

• Net income $108.6m ($77.9m) up 40%
• After-tax operating income of $190.6m
• Gross written premiums increased 14% to $997.8m ($877.5m)
• Reinsurance premiums were up almost 19% while insurance premiums were down 3%.
• International reinsurance business, across almost all regions, saw the largest increases,
• The US reinsurance segment also saw growth with new business opportunities in select markets such as crop hail and treaty casualty. Improving conditions across most markets, due to shrinking capacity and financial security concerns, are catalysts for growth.
• Combined ratio was 89.7% (89.1%)
• Attritional loss ratio, 55.6% (55.2%)
• Reserve development and catastrophe losses in both periods were modest.
• Net investment income was $68.8m ($150.1m)
• Net loss on derivatives $19.7m ($3.8m)
• Net after-tax capital losses $48.5m ($112.7m)

Chairman and chief executive Joseph Taranto said: “We are pleased with the opportunities we are seeing in our markets. Everest’s solid franchise, long term relationships, sound balance sheet, and excellent financial ratings, have facilitated growth as our clients seek stability and security from their reinsurance partners.”