Arch, Everest Re declare Q3 2021 numbers
Bermuda-based insurers Arch Capital Group and Everest Re Group have announced their third quarter results – one reporting a loss while the other posting a profit decline.
First off, Arch’s net income available to common stockholders fell from $ 408.6 million in the third quarter of last year to $ 388.8 million this time. Available after-tax operating income (or excluding Watford Holdings’ results) increased from $ 120.3 million in 2020 to $ 294.7 million for the quarter ended September 30.
In relation to the operating segments, both insurance and reinsurance business suffered underwriting losses. However, the Group’s consolidated underwriting income (including the mortgage segment) was $ 173.7 million.
The Everest Corporation suffered a net loss of $ 73.5 million. In the same quarter of 2020, Everest posted net income of $ 243.1 million. In addition, the company previously had net operating income of $ 97 million; for the third quarter of 2021, the corresponding figure was a net operating loss of $ 52.6 million.
Including catastrophe losses from Hurricane Ida and European floods during the quarter, Everest’s underwriting loss was $ 323.4 million. Catastrophe losses for the Group’s reinsurance segment were $ 555 million, net of claw backs and restocking premiums; Insurance segment, $ 80 million.
“Despite the high frequency and severity of natural catastrophe activity during the quarter,” said Juan C. Andrade, President and CEO of Everest, “we have also benefited from the risk reduction of the CAT portfolio and remain on track to meet our overall shareholder return target.
“We continue to consistently demonstrate our ability to tirelessly implement our plans regardless of the external environment.”