Everest Re’s Q1 loss

BERMUDA-BASED reinsurer Everest Re Group swung to a first-quarter net loss of $22.7m from gain of $108.6m a year ealier, after it reported a record $275.6m in after-tax catastrophe losses. Some $250m of the losses were connected to the Chilean earthquake and European windstorm Xynthia, while the balance was linked to storms in Western Australia. The group’s operating loss was $1.25 a share, which compared with year-earlier income of $1.72 a share and analysts’ forecast for a loss of 74¢ a share. With the massive catastrophe losses, Everest Re’s combined ratio jumped to 124.9% from 89.3%, as earned premiums decreased 0.5% to $927.3m and claims costs increased 59% to $906.9m. Investment income more than doubled to $161.5m. In spite of the heavy catastrophe losses, “our return to shareholders, including dividends paid, was slightly positive”, according to Everest Re Group’s chairman and chief executive, Joseph Taranto.