Everest Re Group, Ltd. (NYSE: RE) announced today that it is currently
estimating losses from Superstorm Sandy to approximate $220 million, net
of reinstatement premiums and taxes. This preliminary loss estimate is
based on an industry loss that ranges between $20 and $25 billion. The
impact of this loss will largely be reflected in the reinsurance
segments.
Joseph V. Taranto, Chairman and Chief Executive Officer, stated,
“Despite these losses, we expect to have an operating profit for the
quarter, further adding to the strong earnings we had through the first
nine months of the year. This announcement will allow us to resume our
stock buyback initiative.”
The Company’s loss estimate is based on a combination of modeled
information, industry loss assessments, underwriter analysis, client
discussions, and a profile of exposed limits within the affected region.
Actual losses could differ, perhaps materially, from this estimate due
to the inherent uncertainties in making these determinations.
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 Re Group, Ltd. is a Bermuda holding company that operates
through the following subsidiaries: Everest Reinsurance Company provides
reinsurance to property and casualty insurers in both the U.S. and
international markets. Everest Reinsurance (Bermuda), Ltd., including
through its branch in the United Kingdom, provides reinsurance and
insurance to worldwide property and casualty markets and reinsurance to
life insurers. Everest Reinsurance Company (Ireland), Limited provides
reinsurance to non-life insurers in Europe. Everest National Insurance
Company and Everest Security Insurance Company provide property and
casualty insurance to policyholders in the U.S. Everest Indemnity
Insurance Company offers excess and surplus lines insurance in the U.S.
Everest Insurance Company of Canada provides property and casualty
insurance to policyholders in Canada. Additional information on Everest
Re Group companies can be found at the Group’s web site at www.everestregroup.com.
