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1
 
 
 
 
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 Fourth
 
Quarter
 
and Full
 
Year 2020 Results
 
HAMILTON,
 
Bermuda --
 
(BUSINESS WIRE)
 
– January
 
25, 2021
 
– Everest Re Group, Ltd. (“Everest” or
the “Company”)
 
announced today preliminary
 
financial results in
 
advance of its
 
full quarterly and
 
full year
earnings to be released on February 8, 2021.
 
Inclusive
 
of
 
the
 
items
 
noted
 
below,
 
Everest
 
expects
 
to
 
report
 
full
 
year
 
2020
 
net
 
income
 
of
 
$475-$525
million and operating income of $275-$325 million.
 
Everest
 
is
 
estimating
 
pre-tax
 
net
 
catastrophe
 
losses
 
for
 
the
 
fourth
 
quarter
 
2020
 
of
 
$70
 
million,
 
net
 
of
reinsurance and
 
reinstatement premiums.
 
The estimate
 
includes the
 
impact of
 
Hurricanes Delta,
 
Zeta, Eta,
Iota,
 
and
 
the
 
Queensland
 
Australia
 
Hailstorm.
 
These
 
catastrophe
 
losses
 
include
 
$60
 
million
 
in
 
the
Company’s Reinsurance segment and $10 million in the Insurance segment.
 
Everest is
 
also estimating
 
pre-tax net
 
Covid-19 Pandemic
 
(“Pandemic”) losses
 
for the
 
fourth quarter
 
2020
of
 
$76
 
million
 
primarily
 
for
 
third-party
 
lines.
 
This
 
amount
 
includes
 
$56
 
million in
 
the
 
Company’s
Reinsurance
 
segment
 
and $20
 
million in
 
the
 
Insurance
 
segment
 
and
 
is
 
in
 
addition
 
to
 
the $435
 
million of
Pandemic
 
losses
 
estimated
 
in
 
the
 
first
 
nine
 
months
 
of
 
2020.
 
For
 
full
 
year
 
2020,
 
the
 
total
 
Pandemic
 
loss
provision is $511 million -- over 80% is IBNR.
 
 
 
 
2
 
 
After a comprehensive
 
annual review
 
of all
 
reinsurance and
 
insurance reserves,
 
Everest is
 
increasing prior
year loss
 
reserves by $400
 
million. The
 
amount is
 
equal to
 
3.0% of
 
net loss
 
reserves as
 
of September
 
30,
2020.
 
This
 
reserve
 
strengthening
 
is
 
all
 
in
 
the
 
Company’s
 
Reinsurance
 
segment
 
and
 
primarily
 
in
 
long-tail
classes for the 2015-2018 accident
 
years notably general liability,
 
professional lines, and auto liability.
 
The
reserve charge also includes actions on non-CAT
 
property lines, primarily for the 2017-2019 accident years
and driven by a few large losses to aggregate programs.
 
 
Everest Re Group President & CEO Juan C. Andrade commented:
 
 
“We
 
remain
 
focused
 
on
 
the
 
relentless
 
execution
 
of
 
our
 
strategies
 
to
 
create
 
a
 
diversified
 
portfolio
 
that
achieves superior risk adjusted returns and
 
value to our shareholders and customers.
 
The decisive reserving
actions
 
we
 
are
 
announcing
 
today
 
recognize
 
the
 
social
 
inflation
 
trends
 
affecting
 
the
 
overall
 
U.S.
 
Casualty
market and enhance
 
our already strong
 
balance sheet. We
 
have proactively acted
 
on the affected
 
portfolios
and we
 
have confidence
 
in our
 
in-force book.
 
We
 
are bullish
 
about our
 
future and
 
the earnings
 
generating
power of our franchise.
 
Everest continues
 
to benefit
 
from excellent
 
financial strength
 
and strong
 
enterprise risk
 
management. The
fundamentals
 
of
 
our
 
business
 
are
 
strong.
 
Our
 
Company
 
is
 
well
 
positioned
 
to
 
succeed
 
in
 
any
 
market
conditions,
 
as
 
evidenced
 
by
 
our
 
growth
 
and
 
our
 
improved
 
underlying
 
results
 
despite
 
the
 
many
 
global
challenges
 
in
 
2020.
 
Our
 
strong
 
management
 
team,
 
employees,
 
global
 
platform,
 
and
 
excellent
 
capabilities
continue to provide superior solutions to our business partners and customers.”
 
 
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.
 
 
 
 
 
 
 
3
 
 
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.