Everest Re Group Ltd (NYSE: RE) stock rose over 4.70% on October 30th, 2018 (as of 11:35 AM GMT-4; Source: Google finance) after the company posted better than expected earnings for the third quarter of FY 18. RE has reported third quarter 2018 net income of $205.6 million compared to net loss of $639.4 million for the third quarter of 2017. After-tax operating income was $167.5 million, for the third quarter of 2018, compared to after-tax operating loss¹ of $623.7 million for the same period last year.
RE in the third quarter of FY 18 has reported the adjusted earnings per share of $4.09, beating the analysts’ estimates for the adjusted earnings per share of $3.07. The company had reported the adjusted revenue of $1.89 billion in the third quarter of FY 18.
Gross written premiums for the quarter were $2.2 billion, an increase of 8% compared to the third quarter of 2017. Worldwide reinsurance premiums were up 7% to $1.7 billion, with growth across each segment primarily driven by increased casualty and property pro-rata premium, rate improvement, increased shares on existing business and profitable new opportunities. Direct insurance premiums were up 8%, from third quarter 2017, to $517.3 million, continuing with the diversified growth trends noted in recent years.
The combined ratio was 100.0% for the quarter compared to 163.6% in the third quarter of 2017. Excluding catastrophe losses, reinstatement premiums and the favorable prior period loss development, the current quarter attritional combined ratio was 86.8% compared to 85.5% in the same period last year. Catastrophe losses, net of reinsurance, amounted to $240.0 million in the quarter, primarily related to the 2018 losses from Hurricane Florence, Typhoon Jebi, Typhoon Trami, California wildfires and Japan floods. Net investment income increased 18% for the quarter to $161.4 million.
Cash flow from operations was $543.6 million for the nine months ended September 30, 2018 compared to $1,044.2 million for the same period in 2017.
Moreover, during the third quarter, the Company purchased 229,432 shares at a total cost of $50.0 million. The repurchases were made pursuant to a share repurchase authorization, provided by the Company’s Board of Directors, under which there remains 1.4 million shares available. Shareholders’ equity ended the quarter at $8.3 billion compared to $8.4 billion at year end 2017. Book value per share was down slightly from $204.95 at December 31, 2017 to $204.91 at September 30, 2018.