The Bermuda-based Everest Re Group reported fourth quarter 2010 after-tax operating income, which excludes net realized capital gains and losses, of $257.8 million, or $4.70 per diluted common share, compared to after-tax operating income1 of $192.0 million, or $3.19 per diluted common share, in the fourth quarter of 2009.
Net income, including net realized capital gains and losses, was $302.5 million, or $5.51 per diluted common share, for the fourth quarter of 2010, compared to $197.2 million, or $3.28 per diluted common share, for the same period last year.
For the year ended December 31, 2010, after-tax operating income was $518.1 million, or $9.08 per diluted common share, compared to $763.7 million, or $12.51 per diluted common share, for 2009. Net income, including net realized capital gains and losses, was $610.8 million, or $10.70 per diluted common share, for the full year 2010, compared to $807.0 million, or $13.22 per diluted common share, for the same period in 2009.
The earnings reported singled out the following “operating highlights:”
— Gross written premiums were $1 billion for the quarter, a decline of 2.5 percent compared to the same quarter in 2009.
— Worldwide reinsurance premiums were down 4.5 percent while insurance premiums were up 6 percent in the period.
— For the full year, gross written premiums totaled $4.2 billion, an increase of 2 percent compared to last year. Adjusting for the impact of foreign exchange, premium actually grew less than 1 percent year over year.
— The loss ratio was 70.6 percent for the quarter and 74.9 percent for the year, compared to 63.1 percent and 61.0 percent, respectively, for the same periods in 2009.
— For the full year, the attritional loss ratio, excluding 14.5 points of catastrophe losses and very modest favorable development, increased to 60.8 percent compared to 56.0 percent for 2009. Accordingly, the current accident year combined ratio, excluding catastrophe losses, increased 4.6 points to 88.7 percent for 2010.
— Net investment income was $184.9 million for the quarter and $653.5 million for the year; up significantly from the comparable periods in 2009 primarily due to improved limited partnership results.
— Net after-tax realized capital gains totaled $44.7 million for the quarter, due to after-tax fair value adjustments of $30.8 million and net after-tax realized gains of $13.9 million from the sale of securities.
— Net after-tax unrealized capital gains decreased $252.3 million during the quarter, primarily due to an increase in interest rates and a general decline in the values of municipal bond holdings.
Chairman and CEO Joseph V. Taranto commented: “Despite a challenging marketplace and a significant number of global catastrophe events in the year, we achieved an operating return on equity of 9 percent and grew book value per share by 12 percent in 2010.”
Source: Everest Re
Topics Profit Loss
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