Reinsurer outperforms despite $33.2m crop underwriting loss

PPI complaints surge

Everest Re has reported third quarter 2012 net income of $250.9m, compared to net income of $63.1m for the third quarter of 2011. After-tax operating income was $210.6m, compared to after-tax operating income of $146.7m for the same quarter last year.

The loss and combined ratios for the quarter were 59.8% and 87.2%, respectively, compared to 69.0% and 95.6% in 2011.

For the nine months net income was $770.2m, compared to a net loss of $121.5m in the first nine months of 2011. After-tax operating income was $673.5m, compared to an operating loss of $42.9m for the same period of 2011.

The current year attritional combined ratio includes a $33.2m underwriting loss in the quarter for crop business, $20m on primary business and $13.2m on reinsurance business. Adjusting for this, the current year attritional combined ratio would be 81.6%.

“Our record pace continues with another quarter of comprehensive income in excess of $400m,” Everest chairman and chief executive Joseph Taranto said. “Through nine months, we have generated almost $1bn of comprehensive income for our shareholders, resulting in growth in book value per share, adjusted for dividends, of 17.4%.”