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|Everest Re Group Announces Net Reserve Adjustments for Second Quarter 2018|
The prior year catastrophe adjustments primarily relate to the 2017 hurricane events – Harvey, Irma and Maria. The increase in estimates was mostly driven by re-opened claims reported in the second quarter and loss inflation from higher than expected loss adjustment expenses and, in particular, their impact on aggregate covers.
In addition, current year weather related events are expected to result
in a second quarter charge of approximately
Everest expects to report net income for the second quarter of 2018.
Commenting on these adjustments, Dom Addesso, the Company’s President
and Chief Executive Officer, said “Losses from events like the industry
experienced in 2017 are difficult to estimate. The number of re-opened
claims and the extraordinary surge in LAE were well above the market
expectation. Nevertheless, it is helpful to keep this loss development
in context. We are in the business of absorbing volatility and over the
last five years we have generated over
This news release contains forward-looking statements within the meaning of the U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. Federal securities laws. These statements involve risks and uncertainties that could cause actual results to differ materially from those contained in forward-looking statements made on behalf of the Company. These risks and uncertainties include the impact of general economic conditions and conditions affecting the insurance and reinsurance industry, the adequacy of our reserves, our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, investment market fluctuations, trends in insured and paid losses, catastrophes, regulatory and legal uncertainties and other factors described in our latest Annual Report on Form 10-K. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Everest Global Services, Inc.