Everest Re Group, Ltd. (“Everest” or the “Group”) reported its fourth quarter and full year 2021 results.
Fourth Quarter 2021 Highlights
Year over year gross written premium (“GWP”) growth of 25% for the Group, 26% for Reinsurance and 21% for Insurance
Combined ratio of 91.9% for the Group, 91.5% for Reinsurance and 92.8% for Insurance
Attritional combined ratios of 87.4% for the Group, 86.4% for the Reinsurance segment and 90.4% for Insurance
Pre-tax underwriting income of $228 million including pre-tax catastrophe losses net of reinsurance and reinstatement premiums of $125 million
Pre-tax net investment income of $205 million, well balanced between fixed income and limited partnership returns
$1.0 billion in 31-year, 3.125% coupon senior notes issued on October 4, 2021
Full Year 2021 Highlights
Net income of $1.380 billion representing a total shareholder return of 14.7%
Pre-tax net investment income of $1.165 billion, well balanced between fixed income and limited partnership returns
Pre-tax underwriting income of $224 million inclusive of pre-tax catastrophe losses net of reinsurance and reinstatement premiums of $1.065 billion
$13.0 billion in total 2021 GWP. $9 billion reinsurance and $4 billion insurance
Year over year gross written premium (“GWP”) growth of 25% for the Group, 25% for Reinsurance, and 24% for Insurance
Attritional combined ratios of 87.6% for the Group, 86.3% for the Reinsurance segment and 91.2% for Insurance
Operating cash flow of $3.8 billion
Common share repurchases of $25 million during the quarter and $225 million for the full year 2021
Everest Re Group President & CEO Juan C. Andrade commented on the Company’s results:
“2021 was a pivotal year of continued profitable growth and momentum for Everest. We finished the year with a strong quarter and achieved record growth in both our underwriting businesses, drove expanding margins, solid underwriting profitability in an elevated natural catastrophe year, and generated exceptional investment income. These results led to $1.4 billion in net income for the year, and a milestone 14.7% total shareholder return. 2021 demonstrated the strong earnings power of our diversified franchises to create value for our shareholders. With a more profitable book of business coming out of a well-executed January 1 reinsurance renewal season, an expanding global value proposition, a strong balance sheet, and exceptional talent, we enter 2022 well-positioned to deliver on our long-term strategic objectives.”
Summary of Fourth Quarter 2021 Net Income and Other Items
Net income of $431 million, equal to $10.94 per diluted share vs. net income of $64 million, equal to $1.59 per diluted share in the fourth quarter 2020
Net operating income $359 million, equal to $9.12 per diluted share vs. net operating income (loss) of $(44) million, equal to $(1.12) per share in the fourth quarter 2020
Underwriting gain of $228 million including $125 million of catastrophe losses net of recoveries and reinstatement premiums. Catastrophe events comprised of Canadian drought losses of $80 million and quad-state tornado losses of $45 million.
GAAP combined ratio of 91.9% which includes 4.5 points of catastrophe losses vs. 2.9 points of catastrophe losses in the same period during 2020
No change to Covid-19 Pandemic (“Pandemic”) ultimate loss provision of $511 million
Operating cashflow for the quarter of $1.04 billion vs $683 million in the same period during 2020.
