Re/insurance group Everest Re sees $730m Q3 nat cat hit

Everest Re likely suffered $730 million in natural catastrophe losses during the third quarter across its primary insurance and reinsurance operations, including $600 million from Hurricane Ian.

Everest built its forecast for Ian losses, divided between $500 million in reinsurance and $100 million in primary insurance, based on an industry loss estimate of $55 million, which Everest said was driven by "significant social inflation in Florida."

“Hurricane Ian is likely to be the second largest hurricane driven industry loss in U.S. history," Everest RE Group CEO Juan Andrade said.

"Everest’s focused execution of its diversification strategy combined with our underwriting discipline, has mitigated our total exposure to approximately 1% of our currently estimated Hurricane Ian industry loss with our reinsurance division expected to be less than 1%.”

Other catastrophe events combined for $120 million in reinsurance losses and $10 in primary coverage losses, all based on industry estimates for neighbourhood $15 billion aggregate.

All forecasts come net of recoveries and reinstatement premiums.

Everest Re made no comment on the impact to Q3 or FY2002 earnings or its capacity going into the January 2023 renewals.

Everest Re is slated to release its full quarterly earnings report on October 26, 2022.

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