Global insurance provider Everest Re Group has announced the estimated impact from the Covid-19 pandemic on its first quarter 2020 results.
The company has anticipated net investment income of $148m (£119m) in its first quarter.
Everest Re Group, which operated in Europe, USA, Canada, Bermuda and Singapore expects to report a combined ratio below 100% for the “consolidated reinsurance and insurance operations in this period.
Everest President and CEO Juan C. Andrade said: “As the situation surrounding the Covid-19 pandemic continues to evolve, our thoughts are with everyone who has been impacted around the globe. Everest remains committed to supporting our clients, communities, and trading partners.
“These are unprecedented times, and our first priority is the safety of our employees, business partners, other stakeholders and their families. Our entire organization has been working remotely, continuing to serve our customers with the same high level of service that they have come to expect.”
He said: “Our capital position remains a source of strength, with high quality invested assets, significant liquidity, low financial leverage, and a low operating expense ratio. Our diversified global platform with its broad mix of products, distribution and geography is resilient.”
The company also said there are “significant uncertainties” surrounding the ultimate number of claims and scope of loss resulting from the pandemic.
The company’s estimates are based on best available information obtained to date from a review of relevant in-force contracts with potential exposure and estimates of reinsurance recoverables, and also from the company’s clients and brokers.
It said: “Given the uncertain and evolving nature of the pandemic, actual ultimate losses from these events may vary materially from these current estimates. Everest anticipates this pandemic could have a meaningful impact on revenue, as well as net and operating income in future quarters as a result of reinsurance and insurance claims due to the Pandemic and resulting macro-economic market conditions.”