Everest Re, the Bermuda-based global reinsurance group, saw its net income slashed 49% from £731.9m in 2019 to £372.1m for FY 2020.
Moreover, the firm saw its operating income for the financial year dwindle to £217.5m, a year-on-year decline of over 65%.
The fourth quarter proved a particularly difficult three months for the insurance group as it swung to a £32m operating loss for the period.
The firm did achieve 15% year-on-year growth in its gross written premiums to both its reinsurance and insurance lines.
Juan Andrade, president and CEO at Everest Re, said: “We are relentlessly executing our strategies from a position of strength in this robust market as evidenced by 2020 growth in gross written premiums of 15% and net written premiums of 17% and improvement in underlying underwriting profitability.
“Despite the $511m (£370.5m) pandemic loss provision and a $400 million prior accident year reserve strengthening, we delivered $300m (£217.5m) in operating income and $514m (£372m) in net income providing a return on equity of 5.8%.”
The firm also attracted £161m of net investment income for Q4, and £469m for the financial year, despite the “sharp decline in interest rates”.