Fitch Ratings has affirmed the ratings of Everest Re Group debt-issuing holding company, Everest Reinsurance Holdings and its subsidiaries as stable.
Everest reported record earnings and improved underwriting results through March 31, 2012 with net income of $305 million compared to a loss of $316 million for the same period in 2011. The combined ratio improved to 89 percent compared to 151.4 percent in 2011 primarily as a result of reduced catastrophe losses.
For the full year 2011, Everest reported deterioration in its operating performance due to large catastrophe losses and modest unfavorable reserve development offset by improved underlying accident year underwriting results and reasonable investment performance. The combined ratio was 118.5 percent, including $1.2 billion, or 32 points, of net pre-tax catastrophe losses, compared to 102.8 percent for 2010.
During the first quarter of 2012, the company repurchased $125 million of shares and paid $26 million of dividends. Fitch's current ratings incorporate expectations that any future share repurchases will not exceed earnings over an extended time.
