Everest Re hit with $150M in losses from pandemic
Reprints
Everest Re Group Ltd. estimated its first-quarter earnings will be hit by $150 million in pretax losses from the COVID-19 pandemic, mainly from its reinsurance business.
In a statement Thursday, the Bermuda-based reinsurer said it has also reduced its equity exposure since the start of the economic crisis.
The company’s balance sheet, including its investment portfolio is “well-diversified, with a focus on high quality fixed income investments,” Everest Re said in the statement.
It has “further repositioned” its portfolio, “moving up in fixed income credit quality and reducing equity exposure,” during the economic crisis, the reinsurer said.
Everest expects to report first-quarter net investment income of $148 million but said that part of its investment income would be reported in the second quarter due to a reporting lag.
Everest expects a first-quarter combined ratio of below 100% for its consolidated reinsurance and insurance operation and said this includes “an incurred but not reported provision for an estimate of $150 million in pre-tax net first-party losses for expected claims related to the pandemic.”
“Our capital position remains a source of strength, with high quality invested assets, significant liquidity, low financial leverage, and a low operating expense ratio. Our diversified global platform with its broad mix of products, distribution and geography is resilient,” Everest President & CEO Juan C. Andrade said in the statement.
The reinsurer will report first-quarter earnings on May 6.
More insurance and risk management news on the coronavirus crisis here.
Read Next
-
Everest Re sponsors $375 million-plus cat bond
Bermuda-based reinsurer Everest Re Group Ltd. is sponsoring Kilimanjaro III Re Ltd. catastrophe bond worth at least $375 million, Artemis reports. The cat bond will provide Everest Re with retro reinsurance protection against certain losses caused by named storms and earthquakes hitting the United States, Puerto Rico, U.S. Virgin Islands, D.C. and Canada.
