Everest Re profits rise on soaring reinsurance rates
Everest Re has posted a 40% increase in first quarter profits.
The Bermuda-based reinsurer reported net income of $108.6 million for the first three months of 2009, up from $77.9 million for the year ago period.
Everest attributed the increase in profit to smaller investment losses and booming reinsurance rates.
Since suffering heavy investment losses when the stock market plunged last autumn, Everest Re has taken a more conservative approach, resulting in a net investment income of $68.8 million.
Reinsurance premiums, meanwhile, soared, up by almost 19%, and driving a 14% increase in gross written premiums to $997.8 million.
Total revenues increased to $989.3 million, compared to £916.8 million in the first quarter of 2008.
Combined ratio worsened slightly by 0.6 percentage points to 89.7%.
Joseph Taranto, chairman and CEO, said: “Everest’s solid franchise, long term relationships, sound balance sheet, and excellent financial ratings, have facilitated growth as our clients seek stability and security from their reinsurance partners.”
Everest shares rose 0.4% following the announcement.
Category: Financials, Insurance News
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