EVEREST RE CEO SAYS LESSONS MUST BE LEARNED AS HURRICANE LOSSES WRONG-FOOT REINSURER

Everest Re Group chief executive, Dominic Addesso, said lessons must be learned from last year’s hurricanes, as the carrier posted nearly $400m in adverse development related to the storms. Speaking to analysts after the Bermuda-based firm reported profits down 83% in the second quarter, Addesso admitted the firm had “got the score-keeping wrong” and its catastrophe programmes needed to better reflect claims dynamics following multiple storms. “We need to make changes to address multiple events,” he said. Everest Re was surprised by the scale of reopened claims in Florida relating to Hurricane Irma and to a lesser extent in Puerto Rico from Hurricane Maria. The company was also hit by a surge in loss adjustment expenses, which began to emerge in the second quarter.