Monday, reinsurance company Everest Re Group Ltd. (RE), reported an increase in second quarter earnings from last year reflecting improved revenues as well as lower claims and expenses.
The Hamilton, Bermuda-based company's second quarter net income rose to $272.59 million or $4.43 per share from $153.0 million or $2.46 per share, for the prior-year period.
After-tax operating income, excluding realized capital gains and losses, was $256.2 million or $4.16 per share for the quarter, up from $180.0 million or $2.89 per share for the same period last year. On average, eleven analysts polled by Thomson Reuters expected the company to earn $2.98 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter rose to $1.171 billion from $1.078 billion a year ago. Analysts expected revenues of $992.88 million for the quarter.
Premiums earned for the quarter increased to $956.91 million from $942.09 million a year ago. Net investment income dipped 5% to $167.21 million from $175.92 million a year ago, attributed primarily due to lower income from equity securities and limited partnership investments.
The company recorded total net realized capital gains of $23.46 million for the quarter, compared to a loss of $31.57 million a year ago. Net derivative income was $21.35 million, compared to $2.08 million in the year-ago period.
Gross written premiums increased 8% to $973.8 million for the quarter compared to $905.3 million for the same period in 2008. Excluding the impact of foreign exchange, gross written premiums were up approximately 12%.
The company noted that worldwide reinsurance premiums increased 6%, but adjusting for foreign exchange, grew approximately 11%. Insurance premiums, which are entirely derived from the U.S. markets, were up 12%.
During the quarter, the company repurchased 707,900 of its common shares at an average price of $69.81. The total cost of the repurchased shares under the program was $49.4 million. The repurchase program has a remaining balance authorization of 5.1 million shares.
For the six months ended June 30, 2009, net income was $381.1 million or $6.19 per share, compared to $231.0 million or $3.69 per share for the first six months of 2008.
After-tax operating income, excluding realized capital gains and losses and the gain on the first quarter's debt repurchase, was $362.4 million or $5.88 per share for the quarter, compared to $370.6 million or $5.92 per share a year ago.
Total revenues for the first six months advanced to $2.161 billion from $1.995 million in the comparable period last year. Net premiums earned grew to $1.889 billion from $1.854 billion a year ago. Net investment revenues increased to $235.96 million from $326.05 million a year ago.
Amongst others, Argo Group International Holdings Ltd. (AGII) reported second-quarter net income of $21.9 million or $0.71 per share, up from $23.0 million or $0.75 per share in the same quarter last year. Total revenue for the quarter rose to $407.0 million from $299.2 million in the comparable quarter last year.
Financial services holding company White Mountains Insurance Group Ltd.(WTM), reported a swing to profit for the second quarter from a loss a year ago, benefiting from improved revenues and lower expenses. The Hamilton, Bermuda-based company reported a net income attributable to White Mountains common shareholders of $180.3 million or $20.35 per share, compared to a loss of $9.2 million or $0.87 per share in the same quarter last year. Comprehensive net income attributable to White Mountains common shareholders for the quarter was $333.4 million, compared to a loss of $56.3 million in the year-ago quarter. On an adjusted basis, comprehensive net income was $235.5 million, compared to a loss of $17.3 million a year ago.
White Mountains Insurance reported total revenues for the quarter of $1.22 billion, an increase from $1.04 billion in the comparable quarter last year.
RE closed Monday's trading at $81.86, up $1.64 or 2.04% on a volume of about 497 thousand shares. In the after market, the stock rose $1.83 or 2.24% trading at $83.69.
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