Everest Expects Q4 Catastrophe Loss Of $215M
Everest Re Group said it expects to report Catastrophe losses in the fourth quarter of 2019 of $215 million, which consist of Typhoon Hagibis in the amount of $190 million and tornado losses in Dallas, Texas in the amount of $25 million.
The company said, “Catastrophe losses are net of estimated reinsurance recoveries and reinstatement premiums. Also contributing to the fourth quarter 2019 results are the following items:
Higher than normal current year losses in the reinsurance crop book related to poor weather conditions in the U.S. and Canada, negatively impacting underwriting income in the amount of about $50 million.
Net favorable prior year reserve development of $19 million.
Net investment income of about $146 million, including lower limited partnership income of $6 million.
“For the full year 2019, Everest expects to report about $1.0 billion of net income, resulting in a net income return on equity of 12%. The Company continued to see strong rate improvement in most classes of insurance and reinsurance during the fourth quarter of 2019 and at the important January 1 renewal date.
“The size, scale and financial strength of Everest, combined with a large and well diversified portfolio of business, is allowing the Company to continue to capitalize on the favorable market conditions.
“Full results for the quarter and 2019 year will be released on February 10, 2020.”
Allstate Announces December 2019 Catastrophe Losses and Fourth Quarter Charges
The Allstate Corporation today announced estimated catastrophe losses for the month of December of $25 million, pre-tax ($20 million, after-tax), bringing estimated catastrophe losses for the fourth quarter 2019 to $295 million, pre-tax ($233 million, after-tax).
Estimated fourth quarter 2019 charges
In December, we announced a Transformative Growth Plan, which included a decision to phase out the use of the Esurance brand trade name. This decision resulted in a $51 million, pre-tax charge ($40 million, after-tax) for impairment of the Esurance trade name intangible asset from the 2011 acquisition. This amount will reduce net income but will be excluded from adjusted net income.
We previously disclosed that we will recognize a charge of $37 million for original issuance costs as a result of the redemption of fixed rate noncumulative perpetual preferred stock on October 15, 2019, which will be included in preferred stock dividends, and reflected in both net income and adjusted net income.Financial information, including material announcements about The Allstate Corporation, is routinely posted on www.allstateinvestors.com