Everest Re CEO stresses ‘relentless focus on profitability and margins’ in Q1

Everest Re chief executive officer Juan Andrade (pictured) has said that the company’s first quarter 2022 result reflects its “relentless focus on profitability and margin expansion” in spite of the macroeconomic, geopolitical and societal issues.

The re/insurer’s gross written premium for the quarter of $2.2 billion was a 9% increase on the same period of 2021, to $3.2 billion from $2.9 billion. This included a “highly successful” 1 January renewal, where it achieved growth in targeted classes, notably casualty pro rata and international treaty, while optimising its property portfolio to reduce catastrophe volatility and maximise returns.

GWP for insurance rose by 15% and for reinsurance by 6%. Net profit, however, fell by 13% to $298 million from $342 million.

It reported a combined ratio of 91.6% for the group, 91.4% for reinsurance and 91.9% for the insurance segment.

“ Everest is off to a strong start in 2022,” said Andrade, highlighting the 56% rise in operating income to $406 million from the $260 million achieved in Q1 2021.

He added: “Our discipline, strength and resilience stand out in the increasingly volatile external environment, which is compounded by a web of macroeconomic, geopolitical and societal issues. As underwriters, the protection and stability we provide has never been more important, and we continue to be a source of strength in the face of global uncertainty.”

Everest said it has “limited exposure” related to the Russian invasion of the Ukraine. Given the ongoing nature of the war and the high degree of uncertainty around both exposure and coverage, it said that no loss provision was being established at this time.

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