Everest Group Quarterly Profit Increases Due to Reinsurance Strength and Investment Gains – Reuters

Everest Group announced an 8% increase in its second-quarter profit, benefiting from enhanced investment returns and robust growth in its reinsurance operations.

The reinsurers have seen advantages from a favorable market, characterized by rising prices that have led to greater premium growth and improved margins. Analysts indicate that they are also shifting more of the catastrophe loss risk to primary insurers, which helps to reduce their financial burden.

As one of the largest property and casualty reinsurers globally, Everest reported a 15.7% rise in net written premium in its reinsurance segment, reaching $3.03 billion for the quarter.

The company’s net investment income rose significantly to $528 million, compared to $357 million during the same period last year. A major portion of Everest’s investment portfolio comprises bonds, which yield greater returns in a high-interest-rate setting. Furthermore, stock investments have capitalized on the market rally spurred by advancements in artificial intelligence and optimism regarding a soft landing for the economy.

Everest, headquartered in Bermuda, offers property, casualty, and specialty reinsurance and insurance services in over 100 countries across six continents. The company’s combined ratio for the quarter was 90.3%, up from 87.7% a year earlier. A ratio below 100% indicates that Everest earned more from premiums than it expended on claims.

Net income for the quarter climbed to $724 million, or $16.70 per share, compared to $670 million, or $16.26 per share, in the previous year. The company’s shares have surged by 11.1% this year, in contrast to a 14% increase in the broader benchmark index.