While recent rate hikes were less than originally expected, Everest Re Group Ltd. remains relatively pleased with the ultimate outcome of its portfolio at Jan. 1 renewals.
In the reinsurance segment, short-tail business, retrocession and loss-affected property catastrophe treaties achieved increases "well into the double digits," John Doucette, president and CEO of reinsurance operations, said on a fourth-quarter 2017 earnings call.
"The casualty market, which was a bright spot in this renewal, showed some stabilization and improvement," he said. "Ceding commissions decreased a few points and excess-of-loss rates had mid-single-digit improvements, with differentiation between better and worse performing books."
Everest Re's North American property and casualty insurance operations ended 2017 at plus 1%, Jonathan Zaffino, president and CEO of insurance, said on the call. "While only slightly positive, it is the first time in several years that we have experienced positive aggregate rate in the non-workers' compensation lines of the business," he said.
Including workers' compensation, the overall rate change turned negative to minus 3%, indicating the continued mid-single-digit rate pressure across the workers' compensation line.
In the property portfolio, rates moved to plus 8% in the fourth quarter of 2017, compared to plus 3% in the linked quarter. The commercial auto segment continues to receive "corrective rate action," a trend that has now persisted for several quarters, he said.
