Bermuda-based Everest Re has recorded net income of $859.0m for the first nine months of the year, down from $894.7m in the same period last year, on earned premiums of $3.81bn, up from $3.47bn for 9mo 2013. A 66% decline in realised capital gains to $70.7m offset improved underwriting results and a sharp drop in income tax expense. Underwriting income rose by 24% year on year to $621.6m. The combined ratio improved 1.9 percentage points to 83.7%
For Q3, net income rose to $274.9m, from $234.8m, on earned premiums of $1.39bn, up from $1.23bn in Q3 2013. The combined ratio for Q3 was 85.7%, down from 88.0%. Underwriting income for Q3 was up 35% year on year to $198.6m
Catastrophe losses from hurricane Odile were $30.0m. There was also an increase in estimated losses for the earthquake in Chile in Q2. Net investment income for the quarter was $142.1m, up 11.1% year on year.
Referring to the results, Everest Re president and chief executive Dominic Addesso said that the company "enjoyed another strong quarter with double digit growth in premium and a 16% annualized operating return on equity. Adjusted for dividends, book value per share has grown by 13% since the end of the year."