(Reuters) - Everest Group reported an 8% rise in second-quarter profit on Wednesday, as the reinsurer benefited from improved investment returns and strong growth in its reinsurance business.
Reinsurers have benefited from a favorable environment thanks to increased pricing, which has boosted both premium growth and margins.
They are also increasingly shifting the risk of catastrophe losses towards primary insurers, analysts have said, reducing their loss burden.
Everest, one of the world's biggest property and 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 a year earlier.
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 also benefitted from the rally driven by an AI boom and hopes of a soft landing for the economy.
Bermuda-based Everest provides property, casualty and specialty reinsurance and insurance offerings across more than 100 countries on six continents.
Everest's combined ratio came in at 90.3% in the quarter, compared with 87.7% a year earlier. A ratio below 100% means the company earned more from premiums than it paid out in claims.
Net income rose to $724 million, or $16.70 per share, in the three months ended June 30, from $670 million, or $16.26 per share, a year earlier.
Shares of the company have jumped 11.1% so far this year, compared to a 14% gain in the benchmark S&P 500 index.