Everest profit jumps on reinsurance strength, investment gains

(Reuters) — Everest Group on Wednesday reported an 8% rise in second-quarter profit, as it benefited from improved investment returns and strong growth in its reinsurance business.

Net income rose to $724 million, or $16.70 per share, from $670 million, or $16.26 per share, in last year’s second quarter.

Bermuda-based Everest, one of the world’s biggest property/casualty reinsurers, said net written premium in its reinsurance segment surged 15.7% to $3.03 billion for the quarter.

The company’s net investment income rose to $528 million in the quarter from $357 million in the year-earlier period.

A significant portion of the company’s investment portfolio consists of bonds, which return better yields in a high interest rate environment.

Additionally, stock investments have benefitted from the rally driven by an artificial intelligence boom and hopes of a soft landing for the economy.

Everest’s combined ratio came in at 90.3% in the quarter, compared with 87.7% in the year-earlier period. A ratio below 100% means the company earned more from premiums than it paid out in claims.

Shares of the company have risen 11.1% so far this year, compared with a 14% gain in the benchmark S&P 500 index.