Catastrophe losses from Q4 2011 and prior quarters significantly weighed on earnings for three Bermuda specialty insurance and reinsurance companies.

Everest Re Group reports an 86 percent drop in fourth-quarter earnings, and the company posted an $80.5 million loss for the year.

Fourth-quarter net income was $41 million, compared to $302.5 million during 2010's fourth quarter.

Results include $370.7 million in catastrophe losses, pre-tax and net of reinstatement premiums, which includes $218 million in losses from the flooding in Thailand, says Hamilton, Bermuda-based Everest Re.

The catastrophe-loss total also includes increased loss estimates from earthquakes in Japan and New Zealand earlier in 2011 and $50 million in additional catastrophe reserving.

Meanwhile, Pembroke, Bermuda-based Axis Capital Holdings says fourth-quarter net income dropped about 70 percent to $80 million. For the year, net income was $9 million compared to $820 million for 2010.

Axis predicts $64 million in pre-tax losses from the Thai flooding, and a $75 million increase in loss estimates for other catastrophes throughout 2011.

Alterra Capital Holdings reports net income of $30.9 million, down about 49 percent from $79.7 million for 2010's fourth quarter.

Alterra says it recorded $55.5 million in catastrophe losses, pre-tax. About $30 million was due to fourth-quarter events and the balance is attributable to events from the first nine months of 2011.

However, on a brighter note for these companies, premiums are up. Everest Re says gross-written premiums during the fourth quarter increased 10 percent.

Gross-written premiums during the last quarter of 2011 increased 5 percent at Axis Capital, but President/CEO John Charman says that the market turn “may require a few years to regain the pricing eroded over the last five or six.”

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Catastrophes Rip Into Bermuda Reinsurers&rsquo; Q4 Income

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Catastrophes Rip Into Bermuda Reinsurers’ Q4 Income