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N
EWS
R
ELEASE
 
 
 
EVEREST RE GROUP,
 
LTD.
Seon Place, 141 Front Street, 4
th
 
Floor, Hamilton HM 19, Bermuda
 
Contacts
Media: Dane Lopes Investors:
 
Jon Levenson
Group Head of Marketing & Communications
 
Head of Investor Relations
Everest Global Services, Inc. Everest Global Services, Inc.
203.388.3977 908.604.3169
 
 
For Immediate Release
 
Everest
 
Provides
 
Preliminary
 
Information
 
on Second
 
Quarter
 
2020 Results
 
 
HAMILTON,
 
Bermuda -- (BUSINESS
 
WIRE) – July
 
23, 2020 –
 
Everest Re Group, Ltd.
(“Everest”
 
or the “Company”)
 
announced today net investment income, catastrophe
 
losses, and the
estimated impact
 
from the
 
ongoing Covid-19
 
pandemic ("Pandemic”)
 
for the
 
second quarter
 
of
2020. Everest
 
is providing
 
details in
 
advance of
 
its full
 
quarterly earnings
 
to be
 
released on
August 5, 2020.
 
 
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.
 
The estimated impacts are as follows:
 
●
 
Everest expects to report net investment income of
 
$38 million 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
 
$15 million
 
arising from
 
claims related
 
to civil
unrest in the United States, all within our Insurance segment.
●
 
Pre-tax net
 
Pandemic losses
 
in the
 
amount of
 
$160 million.
 
The $160
 
million is
 
allocated $130
million to the
 
Company’s Reinsurance segment
 
and $30 million
 
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
 
 
 
 
2
 
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 $150
million of IBNR reported in the first quarter of 2020.
 
 
 
Risks and Uncertainties
There are
 
significant uncertainties
 
surrounding the
 
ultimate number
 
of claims
 
and scope
 
of loss
resulting from
 
the Pandemic.
 
The Company’s
 
estimates are
 
based on
 
best available
 
information
obtained to date from a review of relevant in-force contracts with potential
 
exposure and estimates
of reinsurance recoverables,
 
and also from
 
the Company’s
 
clients and brokers.
 
Given the
uncertain and evolving nature
 
of the Pandemic, actual
 
ultimate losses from these
 
events may vary
materially from
 
these current
 
estimates. Everest
 
anticipates this
 
Pandemic could
 
have a
meaningful impact on revenue, as well as net and operating income in future quarters as a result of
reinsurance and
 
insurance claims
 
due to
 
the Pandemic
 
and resulting
 
macro-economic market
conditions.
 
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.
 
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, regulatory and legal
 
uncertainties and other factors described
 
in our latest
Annual Report on Form 10-K. The Company undertakes no obligation to publicly update or revise
any forward-looking statements,
 
whether as a
 
result of
 
new information, future
 
events or
otherwise.
 
About Everest Re Group, Ltd.
 
Everest Re Group,
 
Ltd. (“Everest”) 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.