29th July 2020

Everest Re publishes second quarter results in advance-pre-tax net pandemic losses of $160m on IBNR basis

Everest Re Group has announced net investment income, catastrophe losses, and the estimated impact from the ongoing COVID-19 pandemic for the second quarter of 2020. Everest is providing details in advance of its full quarterly earnings to be released on 5th August.
Despite the ongoing pandemic and related economic impacts, Everest expects to report another profitable quarter during 2020, with positive underwriting income and growth in gross written premium across our platform.
Everest expects to report net investment income of $38m pre-tax. Since Everest reports most limited partnership income on a one quarter lag, the global equity market downturn in the first quarter of 2020 is being reflected in our second quarter results. In turn, the improvement in global equity markets during the second quarter will be reflected in increased limited partnership investment income in our third quarter results.
Pre-tax net catastrophe losses in the amount of $15m arising from claims related to civil unrest in the US, all within our Insurance segment.
Pre-tax net pandemic losses in the amount of $160m. The $160m is allocated $130m to the company’s Reinsurance segment and $30m to the Insurance segment. Due to the ongoing nature of this unprecedented event, these losses are substantially classified as incurred but not reported(IBNR) and primarily arise from policies covering event cancellation and postponement, business interruption and workers’ compensation, and include a provision for loss adjustment expenses. The second quarter estimate follows an updated and thorough review of existing and potential exposures. Everest continues to evaluate all aspects of our global portfolio. The pandemic estimate does not account for legal, regulatory or legislative intervention that could retroactively mandate or expand coverage provisions. This amount is in addition to the $150m of IBNR reported in the first quarter of 2020.

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