Everest Announces Preliminary Impact of Third Quarter 2022 Catastrophe Events

Rhea-AI Summary

Everest Re Group, Ltd. (NYSE:RE) has reported estimated pre-tax net catastrophe losses of $730 million for Q3 2022, primarily attributed to Hurricane Ian and other global events. The loss estimate includes $500 million from Hurricane Ian, which has an estimated industry loss of approximately $55 billion, driven by social inflation in Florida. Additionally, losses from all other events are around $15 billion. Despite these losses, Everest's diversified strategy mitigated exposure to about 1% of the estimated Hurricane Ian industry loss.

Positive

• Everest's diversified strategy mitigated exposure to approximately 1% of the Hurricane Ian industry loss.
• The company maintains a disciplined underwriting approach despite significant catastrophe losses.

Negative

• Total pre-tax net catastrophe losses estimated at $730 million for Q3 2022.
• Hurricane Ian expected to be the second largest industry loss in U.S. history.

HAMILTON, Bermuda--(BUSINESS WIRE)-- Everest Re Group, Ltd. (“Everest” or the “Company”) (NYSE:RE) announced today preliminary third quarter 2022 catastrophe losses in advance of its full quarterly earnings to be released on October 26, 2022.

• Everest is estimating total pre-tax net catastrophe losses of $730 million for the third quarter 2022 as detailed in the table below. All amounts are net of estimated recoveries and reinstatement premiums
  • For Hurricane Ian, Everest’s loss estimate is based on insured industry losses of approximately $55 billion, driven in part by the significant social inflation in Florida
  • For all other global catastrophe events, Everest’s loss estimate is based on insured industry losses of approximately $15 billion

Amounts in USD (millions)			Reinsurance Segment				Insurance Segment				Event Totals
Hurricane Ian			$	500			$	100			$	600
All Other Events				120				10			$	130
Segment Totals			$	620			$	110			$	730

“Our thoughts are with those impacted by the severe weather events across the globe. We are dedicated to supporting our customers in their time of need,” said Juan C. Andrade, President and CEO of Everest Re Group. “Hurricane Ian is likely to be the second largest hurricane driven industry loss in U.S. history. 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%.”

About Everest Re Group, Ltd.

Everest Re Group, Ltd. is a leading global provider of reinsurance and insurance, operating for close to 50 years through subsidiaries in the U.S., Europe, Singapore, Canada, Bermuda, and other territories.

Everest offers property, casualty, and specialty products through its various operating affiliates located in key markets around the world.

Everest common stock (NYSE:RE) is a component of the S&P 500 index.

Additional information about Everest, our people, and our products can be found on our website at www.everestre.com. All issuing companies may not do business in all jurisdictions.

This news release contains forward-looking statements within the meaning of the U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. Federal securities laws. These statements involve risks and uncertainties that could cause actual results to differ materially from those contained in forward-looking statements made on behalf of the Company, including the expected closing and use of proceeds from the debt offering. These risks and uncertainties include the impact of general economic conditions and conditions affecting the insurance and reinsurance industry, the adequacy of our reserves, our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, investment market and investment income fluctuations, trends in insured and paid losses, catastrophes, pandemic losses, regulatory and legal uncertainties and other factors described in our latest Annual Report on Form 10-K. Everest undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221019006015/en/

Media: Dawn Lauer

Chief Communications Officer

Everest Global Services, Inc.

908.300.7670



Investors: Matt Rohrmann

Head of Investor Relations

Everest Global Services, Inc.

908.604.7343

Source: Everest Re Group, Ltd.

FAQ

What are the total catastrophe losses reported by Everest Re Group for Q3 2022?

Everest Re Group reported total pre-tax net catastrophe losses of $730 million for Q3 2022.

How much of the losses for Q3 2022 are attributed to Hurricane Ian?

Hurricane Ian accounts for an estimated $500 million of the total catastrophe losses.

What is the estimated industry loss caused by Hurricane Ian?

The estimated industry loss from Hurricane Ian is approximately $55 billion.

What percentage of the Hurricane Ian industry loss is Everest exposed to?

Everest's exposure to the Hurricane Ian industry loss is estimated to be about 1%.

When will Everest Re Group release its full quarterly earnings?

Everest Re Group is set to release its full quarterly earnings on October 26, 2022.