Hamilton, Bermuda -(BusinessWire)- Everest Re Group, Ltd. recently reported its 2020 fourth quarter and year end results.
Fourth Quarter 2020 Highlights
- Net income of $64 million equal to $1.59 per share
- Net operating loss of $(44) million, $(1.12) per common share
- Gross written premium growth of 13%
- Attritional combined ratio of 86.3%, a 4 point improvement year over year
- Pre-tax net catastrophe losses of $70 million, Covid-19 Pandemic (“Pandemic”) losses of $76 million, and a prior year reserve strengthening of $400 million
Full Year 2020 Highlights
- Net income of $514 million, $12.78 per diluted common share
- Net operating income of $300 million, $7.46 per diluted common share
- Growth in diluted book value per share of 11.4% inclusive of dividends
- Gross written premium growth of 15%
- Attritional combined ratio of 87.5%, ~ 1 point improvement year over year
- 2020 cash flow from operations of $2.9 billion
Everest Re Group President & CEO Juan C. Andrade commented: “We are relentlessly executing our strategies from a position of strength in this robust market as evidenced by 2020 growth in gross written premiums of 15% and net written premiums of 17% and improvement in underlying underwriting profitability. Our attritional combined ratio improved approximately one point to 87.5% versus the prior year, with our Insurance segment improving 2.3 points to 94.2%. Despite the $511 million Pandemic loss provision and a $400 million prior accident year reserve strengthening, we delivered $300 million in operating income and $514 million in net income providing a return on equity of 5.8%. Everest’s investment income remained resilient at $642 million despite the Pandemic’s impact on financial markets and the sharp decline in interest rates. Our total shareholders’ equity grew to a record $9.7 billion from $9.1 billion during the year, representing net book value per share growth of 11.4% including dividends. Everest has a strong capital position bolstered by the $1.0 billion senior notes offering and a leading global franchise with great momentum entering 2021.”
The reinsurance segment achieved strong growth with gross written premiums up 12% for the quarter and 15% for the year, driven by new business opportunities, growth with existing customers, and improved rates and terms and conditions.
The combined ratio for the quarter and full year 2020 reflected the impact of catastrophe losses, Covid-19 pandemic losses, and a reserve adjustment in the amount of $400 million.
We have a more profitable portfolio driven by the consistent execution of our underwriting initiatives.
The Company’s insurance segment achieved strong growth with gross written premiums up 15% for the quarter and 15% for the year, driven primarily by new business opportunities, strong renewal retention, and rate improvement.
The combined ratio for the quarter and full year 2020 reflected the impact of catastrophe losses and Covid-19 pandemic losses.
We achieved record renewal rate increases of +21% in the fourth quarter excluding workers compensation, and up 14% including workers compensation where we are seeing rates flatten.
Investments and capital
- Net investment income of $222 million for the quarter and $647 million for the year, including limited partnership gains of $91 million for the quarter and $113 million for the year
- Total invested assets and cash of $25.5 billion at December 31, 2020, 23% growth year over year
- Shareholders’ equity increased to a record $9.7 billion at December 31, 2020
- Book value per diluted share at December 31, 2020 of $243.25, up 11.4% on a dividend adjusted basis since year end 2019
- Common share dividends declared and paid of $1.55 per share, equal to $62 million for the quarter
- The Company repurchased no common shares in the quarter
The complete results release is available here: Everest Re Group Reports Fourth Quarter and Full Year 2020 Results