Everest Re Group (RE) has reported a 4.56 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $373.57 million, or $9.08 a share in the quarter, compared with $357.28 million, or $8.26 a share for the same period last year. Revenue during the quarter grew 6.28 percent to $1,613.96 million from $1,518.61 million in the previous year period. Net premium earned for the quarter increased 5.03 percent or $69.03 million to $1,441.26 million.
Total expenses move up Benefits, losses and expenses for the quarter were at $1,198.37 million, or 83.15 percent of premium earned from $1,098.18 million or 80.03 percent of premium earned in the last year period. Operating income for the quarter was $415.59 million, compared with $420.43 million in the previous year period.
Net investment income was at $115.17 million for the quarter, up 4.21 percent or $4.65 million from year-ago period.
Commenting on the Company's results, president and chief executive officer, Dominic J. Addesso said, "Everest had another record quarter and an outstanding year, generating 13% ROE and strong growth in book value per share, despite what continues to be a very challenging market. Our reinsurance book remains quite strong with a 77.6% combined ratio, which is remarkable when considering the string of global natural catastrophe events for the year. While our insurance operations' results were mostly impacted by charges on discontinued books of business, the underlying fundamentals of this book continue to improve. We are confident in the future and expect Everest to continue to generate above average returns for its shareholders."
Operating cash flow improves significantly Everest Re Group has generated cash of $1,373 million from operating activities during the year, up 25.20 percent or $276.37 million, when compared with the last year.
The company has spent $657.87 million cash to meet investing activities during the year as against cash outgo of $681.10 million in the last year.
The company has spent $570.92 million cash to carry out financing activities during the year as against cash outgo of $561.57 million in the last year period.
Cash and cash equivalents stood at $481.92 million as on Dec. 31, 2016, up 69.90 percent or $198.26 million from $283.66 million on Dec. 31, 2015.
Assets fall, liabilities grow
Total assets were almost stable over the past one year at $21,321.50 million on Dec. 31, 2016. On the other hand, total liabilities were at $13,246.11 million as on Dec. 31, 2016, up 2.39 percent or $309.28 million from year-ago.
Return on assets stood at 1.79 percent in the quarter, up 0.08 from 1.71 percent in the last year period. At the same time, return on equity was at 4.63 percent in the quarter, down 0.07 from 4.70 percent in the last year period.
Investments move up marginally Investments stood at $17,001.17 million as on Dec. 31, 2016, up 3.71 percent or $608.42 million from year-ago. Meanwhile, yield on investments was almost stable at 0.68 percent in the quarter, when compared with the last year period.
Total debt was almost stable over the past one year at $633.18 million on Dec. 31, 2016. Shareholders equity stood at $8,075.40 million as on Dec. 31, 2016, up 6.14 percent or $466.81 million from year-ago. As a result, debt to equity ratio was almost stable at 0.08 percent in the quarter, when compared with the last year period.
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