HAMILTON, Bermuda – Everest Re Group, Ltd. (NYSE: NYSE:EG) announced a robust start to the year with record first-quarter underwriting income and earnings that surpassed Wall Street expectations.
The global underwriting leader reported adjusted earnings per share (EPS) of $16.32, exceeding analyst estimates by $0.39. Revenue for the quarter reached $4.13 billion, also topping the consensus forecast of $4.05 billion.
The stock was trading flat during after hours.
The company’s underwriting success was highlighted by a combined ratio of 88.8%, indicating strong profitability, and a year-over-year (YoY) gross written premium growth of 17.9%. This performance reflects a 50% increase in underwriting income over the previous year, setting a new quarterly record of $409 million. The improvement was attributed to margin enhancements in underwriting and a significant rise in net investment income, which hit a record $457 million, thanks to a larger asset base and robust core fixed income returns.
Everest Re’s President and CEO, Juan C. Andrade, commented on the results, “Everest had a strong start to 2024, with first quarter results delivering significant profitability across all key metrics, including a Total Shareholder Return in excess of 18% and an operating return on equity of 20%.” He attributed the success to disciplined underwriting and strategic growth across global markets.
The company’s net income for the quarter was $733 million, a substantial increase from $365 million in the first quarter of the previous year. Operating income also saw a significant rise to $709 million from $443 million YoY. The robust financial health of Everest Re is further evidenced by a solid operating cash flow of $1.1 billion, consistent with the prior year’s quarter.
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