Everest Re’s climbing fourth quarter catastrophe bill helped the carrier to disappoint analysts in the first three months of 2018.
Earlier this month, the carrier revealed that it was expecting last year’s wildfires, which scorched swathes of California, to add around $100mn to its cat bill for the first three months of 2018.
It blamed the deteriorating loss, which added more than 6 points to its combined ratio for the quarter, on increased industry estimates for the fires, which have climbed to roughly $13bn.
Last night, the Bermudian revealed a $219.7mn, or $5.34 per share, operating profit that fell shy of the $5.40 per share that had been forecast by 10 equities analysts surveyed by MarketWatch.
The catastrophe losses for 2018 added to a $161.5mn tab Everest Re ran up in the final quarter of last year, for which it reported a consensus-beating profit of $556mn.
While the group’s bottom line deteriorated from a $267.1mn profit this time last year, its top line ballooned as gross written premiums climbed by 21 percent to $1.93bn.
The carrier clocked a 93.3 percent combined ratio for the quarter, a 7.3 point deterioration compared to this time last year.
Everest said a higher attritional loss ratio driven by changes in mix of business as well as higher retrocessional costs in the quarter had helped drive an increase in its combined ratio.
Everest president and CEO Dominic Addesso said: “Our diversified growth strategies, with premium up 21 percent, continue to provide balance and stability to the overall portfolio.
“In fact, excluding catastrophe losses, our net operating income was up 5 percent and underwriting income was above $200mn.”
“We are pleased with our overall results and believe they once again demonstrate the strength of the Everest franchise,” Addesso added.