US-based reinsurer Everest Group has posted a net loss of $593m for the fourth quarter of 2024 (Q4 2024) compared with net income of $804m a year ago.
The company attributed the downturn to the unfavourable development of prior-year loss reserves in US casualty lines.
The company reported a diluted loss per share of $13.96 for the quarter, in contrast to the earnings per share (EPS) of $18.53 in Q4 2023.
Net operating loss stood at $780m versus net operating income of $1.1bn in the prior-year quarter.
Despite the loss, gross written premiums (GWP) for the quarter rose 7.2% year-over-year to $4.7bn.
For the reinsurance segment, premiums increased by 12.6% to approximately $3.3bn on a comparable basis, adjusting for constant dollar value and excluding reinstatement premiums.
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By GlobalDataHowever, in the insurance segment, GWP declined 1.6% to $1.4bn in constant dollars as the company continued its strategic portfolio adjustments.
While property and specialty lines experienced strong double-digit growth, reductions in certain casualty lines partially offset these gains, the company added.
Additionally, current accident-year losses increased by $229m, with $206m attributed to the insurance segment.
For the full year 2024 (FY24), Everest Group reported net income of $1.4bn, a decline from $2.5bn in 2023.
The company’s total GWP reached $18.2bn, reflecting a 9.1% year-over-year increase.
Last month, Everest Group named Jim Williamson as its president and CEO, with immediate effect.
Williamson said: “This was a pivotal year for Everest as we took decisive action to fortify our US casualty reserves, solidify our franchise value and raise the bar across all facets of the company.
“Our lead market reinsurance franchise continues to demonstrate its value in the market, as evidenced by another well-executed January 1 renewal. In our insurance business, the significant transformation of our North America insurance platform is well under way. We made meaningful progress improving our portfolio, all while taking aggressive underwriting action in US casualty lines.”
Looking ahead, the company estimates its pre-tax net catastrophe losses for Q1 2025 to be between $350m and $450m, after accounting for recoveries and reinstatement premiums.
The projection is based on an industry-wide insured loss estimate ranging from $35bn to $45bn.
