EVEREST EXPECTS $146M IN CAT LOSSES AND ADDS TO LOSS RESERVES

Bermudian re/insurer said Monday that its fourth-quarter results will reflect around $146m in catastrophe losses net of reinsurance and reinstatement premiums. The losses include $76m in connection with the Covid-19 pandemic and $70m for the impact of hurricanes Delta, Zeta, Eta, and Iota and the Queensland hailstorm in Australia. The group’s reinsurance segment accounted for $116m, or nearly 80%, of total cat losses for the period. The Covid-related losses brought the year’s total for that peril to $511m, with more than 80% of it incurred but not reported. Everest also said it is increasing prior-year loss reserves by $400m in its reinsurance segment primarily in long-tail classes for the 2015 to 2018 accident years in general liability, professional lines, and motor liability and for the 2017 to 2019 accident years in non-catastrophe property. Despite the cat losses and reserving action, Everest expects to post 2020 net income of $475m to $525m and operating income of $275m to $325m.