Everest Re Group Ltd. (RE, Financial) filed Quarterly Report for the period ended 2010-03-31.
Everest Re Group Ltd. has a market cap of $4.41 billion; its shares were traded at around $74.35 with a P/E ratio of 7.8 and P/S ratio of 0.98. The dividend yield of Everest Re Group Ltd. stocks is 2.58%.RE is in the portfolios of David Einhorn of Greenlight Capital Inc, Mason Hawkins of Southeastern Asset Management, Chris Davis of Davis Selected Advisers, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC, George Soros of Soros Fund Management LLC, John Keeley of Keeley Fund Management.
Net Investment Income. Net investment income increased by 134.9% for the three months ended March 31, 2010, compared to the three months ended March 31, 2009, due primarily to net investment gains from our limited partnerships that invest in public and non-public securities, both equity and debt. Gains related to these limited partnerships were $15.9 million for the three months ended March 31, 2010 compared with losses of $72.9 million for the comparable period in 2009. As a result, net pre-tax investment income, as a percentage of average invested assets, was up at 4.4% for the three months ended March 31, 2010 compared to 2.0% for the three months ended March 31, 2009.
Net Realized Capital Gains (Losses). Net realized capital gains were $72.7 million for the three months ended March 31, 2010, compared to net realized capital losses of $65.1 million for the three months ended March 31, 2009. For the three months ended March 31, 2010, we recorded $55.0 million of net realized capital gains from sales on our available for sale fixed maturity and equity securities, and by a $17.7 million gain in fair value re-measurements. For the three months ended March 31, 2009, we recorded $39.9 million of net realized capital losses, from the sale of fixed maturity and equity securities, $16.9 million loss in fair value re-measurements and $8.3 million due to other-than-temporary impairments.
Realized Gain on Debt Repurchase. On March 19, 2009, we commenced a cash tender offer for any and all of the 6.60% fixed to floating rate long term subordinated notes due 2067. Upon expiration of the tender offer, we had reduced our outstanding debt by $161.4 million, which resulted in a pre-tax gain on debt repurchase of $78.3 million.
Net Derivative Gain (Loss). In 2005 and prior, we sold seven equity index put option contracts, which are outstanding. These contracts meet the definition of a derivative in accordance with FASB guidance and as such, are fair valued each quarter with the change recorded as net derivative gain or loss in the consolidated statements of operations and comprehensive income. As a result of these adjustments in value, we recognized net derivative gain of $3.1 million for the three months ended March 31, 2010 and net derivative loss of $19.7 million for the three months ended March 31, 2009. The change in the fair value of these equity index put option contracts is indicative of the change in the financial markets over the same periods.
Other Income (Expense). We recorded other income of $5.3 million and other expense of $5.2 million for the three months ended March 31, 2010 and 2009, respectively. The changes were primarily the result of fluctuations in foreign currency exchange rates for the corresponding periods.
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Everest Re Group Ltd. has a market cap of $4.41 billion; its shares were traded at around $74.35 with a P/E ratio of 7.8 and P/S ratio of 0.98. The dividend yield of Everest Re Group Ltd. stocks is 2.58%.RE is in the portfolios of David Einhorn of Greenlight Capital Inc, Mason Hawkins of Southeastern Asset Management, Chris Davis of Davis Selected Advisers, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC, George Soros of Soros Fund Management LLC, John Keeley of Keeley Fund Management.
Highlight of Business Operations:
Premiums. Gross written premiums increased by $23.2 million, or 2.3%, for the three months ended March 31, 2010, compared to the three months ended March 31, 2009, reflecting a $23.5 million increase in our insurance business, partially offset by a decrease of $0.3 million in our reinsurance business. The increase in insurance premiums were primarily in the workers compensation, Florida property and financial institution D&O and E&O lines of business. Net written premiums decreased $1.5 million, or 0.2%, for the three months ended March 31, 2010 compared to the three months ended March 31, 2009. This change wasNet Investment Income. Net investment income increased by 134.9% for the three months ended March 31, 2010, compared to the three months ended March 31, 2009, due primarily to net investment gains from our limited partnerships that invest in public and non-public securities, both equity and debt. Gains related to these limited partnerships were $15.9 million for the three months ended March 31, 2010 compared with losses of $72.9 million for the comparable period in 2009. As a result, net pre-tax investment income, as a percentage of average invested assets, was up at 4.4% for the three months ended March 31, 2010 compared to 2.0% for the three months ended March 31, 2009.
Net Realized Capital Gains (Losses). Net realized capital gains were $72.7 million for the three months ended March 31, 2010, compared to net realized capital losses of $65.1 million for the three months ended March 31, 2009. For the three months ended March 31, 2010, we recorded $55.0 million of net realized capital gains from sales on our available for sale fixed maturity and equity securities, and by a $17.7 million gain in fair value re-measurements. For the three months ended March 31, 2009, we recorded $39.9 million of net realized capital losses, from the sale of fixed maturity and equity securities, $16.9 million loss in fair value re-measurements and $8.3 million due to other-than-temporary impairments.
Realized Gain on Debt Repurchase. On March 19, 2009, we commenced a cash tender offer for any and all of the 6.60% fixed to floating rate long term subordinated notes due 2067. Upon expiration of the tender offer, we had reduced our outstanding debt by $161.4 million, which resulted in a pre-tax gain on debt repurchase of $78.3 million.
Net Derivative Gain (Loss). In 2005 and prior, we sold seven equity index put option contracts, which are outstanding. These contracts meet the definition of a derivative in accordance with FASB guidance and as such, are fair valued each quarter with the change recorded as net derivative gain or loss in the consolidated statements of operations and comprehensive income. As a result of these adjustments in value, we recognized net derivative gain of $3.1 million for the three months ended March 31, 2010 and net derivative loss of $19.7 million for the three months ended March 31, 2009. The change in the fair value of these equity index put option contracts is indicative of the change in the financial markets over the same periods.
Other Income (Expense). We recorded other income of $5.3 million and other expense of $5.2 million for the three months ended March 31, 2010 and 2009, respectively. The changes were primarily the result of fluctuations in foreign currency exchange rates for the corresponding periods.
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