Insurer Everest Group's quarterly profit rises on robust underwriting, investment yields

Everest

29/04/2024 22:27

April 29 (Reuters) - Everest Group  EG.N  posted a surge
in first-quarter profit on Monday as the insurer benefited from
stronger underwriting and better returns on its investments.
    Supported by employer-guaranteed policies mandated by the
government, insurance has lived up to its status as a
"recession-proof" industry by staying resilient despite economic
downturns. 
    The company said its gross written premium increased 17.9%,
to $4.41 billion in the quarter.
    It posted a combined ratio of 88.8%, compared with 91.2% a
year earlier. A ratio below 100% means the insurer earned more
in premiums than it paid out in claims.
    Insurers also use their cash to shore up their portfolios,
mainly by buying safe-haven assets such as U.S. Treasuries and
other high-grade corporate bonds. Multiple rate hikes by the
Federal Reserve in the past year have helped insurers earn
higher interest from such investments. 
    Everest's net investment income improved to $457 million,
compared with $260 million a year earlier, driven by a larger
asset base and strong core fixed income returns.
    Gross written premiums in its reinsurance segment grew 20.4%
on a constant dollar basis. 
    Operating income was $709 million, or $16.32 per share, for
the three months ended March 31, compared with $443 million, or
$11.31 per share, a year ago.

 (Reporting by Sri Hari N S in Bengaluru; Editing by Pooja
Desai)
 ((SriHari.NS@thomsonreuters.com;))