Everest Re sees approximately $250M charge for net reserve adjustments in Q2
Everest Re Group announced that it expects to report a charge for net reserve adjustments of approximately $250M, after tax, for the second quarter of 2018. These reserve adjustments are related to prior year catastrophe events and include a partial offset from favorable prior year development of non-catastrophe reserves. The prior year catastrophe adjustments primarily relate to the 2017 hurricane events - Harvey, Irma and Maria. The increase in estimates was mostly driven by re-opened claims reported in the second quarter and loss inflation from higher than expected loss adjustment expenses and, in particular, their impact on aggregate covers. In addition, current year weather related events are expected to result in a second quarter charge of approximately $25M, after tax. Everest expects to report net income for the second quarter of 2018.