Everest Group quarterly profit rises on reinsurance strength, investment returns

(Reuters) - Everest Group on Wednesday reported a near 3% rise in third-quarter operating income, helped by strong growth in its reinsurance business and gains from investments.

Expectation of a soft landing for the economy and strong labor market data has revived spending on insurance policies helping companies such as Everest.

The company said gross written premiums in its reinsurance business rose 2.1% to $3.27 billion in the reported quarter.

The company's investments also raked in higher returns with an ebullient equity market and a higher interest rate environment that helped bond yields.

The company's net investment income rose to $496 million in the quarter ended Sept. 30, from $406 million a year earlier.

Everest's combined ratio came in at 93.1% in the quarter, compared with 91.4% a year earlier. A ratio below 100% means the company earned more from premiums than it paid out in claims.

Bermuda-based Everest provides property, casualty and specialty reinsurance and insurance offerings across more than 100 countries on six continents.

Everest's net operating income came in at $630 million, or $14.62 per share, for the July-to-September period, up from $613 million, or $14.14 per share, a year ago.

Source: Investing.com