Everest Re Group Ltd. (NYSE:RE) Q2 2020 Earnings Conference Call - Final Transcript
Aug 06, 2020 • 10:30 am ET
Good day, and welcome to the Everest Re Group Second Quarter 2020 Earnings Conference Call. [Operator Instructions]
And now at this time, I'd like to turn the conference over to Mr. Jon Levenson. Please go ahead, sir.
Thank you, Cody, and welcome to the Everest Re Group Limited 2020 Second Quarter Earnings Conference Call. The Everest executives leading today's call are Juan Andrade, President and Chief Executive Officer; Craig Howie, EVP and Chief Financial Officer; John Doucette, EVP and President and CEO of the Reinsurance Division. We're also joined by other members of the Everest management team. Before we begin, I will preface the comments on today's call by noting that Everest SEC filings include extensive disclosures with respect to forward-looking statements. Management comments regarding estimates, projections and similar are subject to the risks, uncertainties and assumptions as noted in these filings. Management may also refer to certain non-GAAP financial measures. These items are reconciled in our earnings release and financial supplements.
With that, I turn the call over to Juan Andrade.
Juan C. Andrade
Thank you, Jon. Good morning, everyone, and thank you for joining the call. The world is struggling with the greatest public health threat in the last century, which has resulted in economic and great personal suffering. At the same time, individuals are rightly calling for positive social change and seeking an end to racism and inequality. At Everest, we stand together with our colleagues around the world against racism and discrimination. We have an unwavering commitment to supporting diversity, equity and inclusion in our workplace. In the context of this public health, economic and social environment, Everest is serving our customers and providing the strength and stability that they have come to rely on for almost five decades. Our business is running smoothly. We are performing well, and our people continue to demonstrate the passion and resilience that differentiates Everest. The health and safety of our employees and our customers are paramount. I am very proud of our team and very thankful for their hard work and perseverance in delivering the solid results we're reporting today for the second quarter and for the first half of 2020. Our ability to leverage our capital position, our global platform and our success in executing against our objectives, even under adverse conditions, positions us very well for continued profitable growth. We have strong and broad-based forward momentum across both our Reinsurance and Insurance divisions.
Our growth stems from a combination of new business opportunities, resulting from our strong financial ratings, deep distribution and diverse portfolio as well as increased rate levels and high retention rates. We sequentially improved our underwriting profitability in the second quarter, and we continue to demonstrate strong structural expense management discipline. Our industry-leading expense ratio continues to give us operating flexibility. We also reported significantly improved net income compared to the first quarter as we benefited from the upswing in the capital markets during the second quarter. And our shareholders' equity grew to a record $9.3 billion as