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Everest Re sees little Q2 impact from catastrophes, hailstorms

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Everest Re sees little Q2 impact from catastrophes, hailstorms

shouldsidestep much of the fallout from a recent spate of catastrophes around theworld, President and CEO Dominic Addesso said during an April 26 conferencecall to discuss earnings.

Thedisasters, which included earthquakes in Japan and Ecuador, will hit variousparts of the company's insurance and reinsurance operations. Yet collectively,they should not make much of a dent in the funds that Everest Re set aside topay for second-quarter disaster claims. The Bermuda-based company expectscatastrophe losses to account for about 10% of its overall combined ratio for2016, with the impact spread out evenly across the four quarters.

"Giventhe ranges that have been spoken about, we obviously feel very comfortable thatit's well below our quarterly expected cat load," Addesso said on thecall, adding that the hailstorms that pummeled parts of Texas will likely bethe costliest of the events so far.

The7.8-magnitude earthquake that roiled Ecuador on April 17 will only affect thecompany's reinsurance book of business, Addesso said. Catastrophe modeling firmAIR Worldwide peggedindustry-insured losses for the quake at between $325 million and $850 million.The Insurance Council of Texas, meanwhile, expects insured losses from the state's hailstorms to exceed$600 million.

EverestRe in the first quarter reported a slightly higher combined ratio year overyear, due in part to a rise in disaster losses. The company put $10 milliontoward claims stemming from an earthquake that hit Taiwan during the period.