Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Everest Reports First Quarter 2024 Results By: Everest Group, Ltd. via Business Wire April 29, 2024 at 16:15 PM EDT Net Income of $733 million and Operating Income of $709 million TSR1 of 18.1%; 20.6% Net Income ROE and 20.0% Operating Income ROE 88.8% Combined Ratio Resulting in Record Underwriting Income of $409 million Everest Group, Ltd. (NYSE: EG), a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions, today reported its first quarter 2024 results. First Quarter 2024 Highlights Net Income of $733 million; Operating Income of $709 million driven by underwriting margin improvement and strong net investment income generation Total Shareholder Return of 18.1% annualized; 20.6% Net Income ROE and 20.0% Operating Income ROE $4.4 billion in gross written premium with year-over-year growth of 17.2%2 for the Group, 20.4%2 for Reinsurance, and 9.8%2 for Insurance Combined ratios of 88.8% for the Group, 87.3% for Reinsurance and 93.1% for Insurance Attritional combined ratios of 86.5% for the Group, 84.4% for Reinsurance and 92.5% for Insurance Pre-tax underwriting income of $409 million, a company record, versus pre-tax underwriting income of $273 million in the prior year $85 million of pre-tax catastrophe losses net of recoveries and reinstatement premiums, primarily driven by the Francis Scott Key Bridge Collapse in Baltimore, versus $110 million in the prior year Net investment income improved to $457 million versus $260 million in the prior year first quarter, a company record, driven by a larger asset base and strong core fixed income returns Strong operating cashflow for the quarter of $1.1 billion, in-line with the prior year quarter Footnote 1 denotes annualized figure; represents Total Shareholder Return or "TSR" Footnote 2 denotes constant currency figure and excludes reinstatement premiums “Everest had a strong start to 2024, with first quarter results delivering significant profitability across all key metrics, including a Total Shareholder Return in excess of 18% and an operating return on equity of 20%,” said Juan C. Andrade, Everest President and CEO. “Group underwriting income increased 50% over the prior year to a quarterly record of $409 million with a combined ratio of 88.8%, driven by both of our underwriting franchises. Our reinsurance business continued to differentiate Everest during another outstanding January 1 renewal as the flight to quality accelerated. We gained market share with targeted clients, positioning the portfolio for attractive levels of profitability. In our insurance division, we advanced our disciplined expansion across global markets, while remaining focused on prudent risk selection and the bottom line. Additionally, our investment portfolio contributed a record $457 million in net investment income. With strong momentum across our underwriting businesses, we are executing on our three-year strategic plan, focused on generating consistent, industry leading financial returns.” Summary of First Quarter 2024 Net Income and Other Items Net Income of $733 million, equal to $16.87 per diluted share versus first quarter 2023 net income of $365 million, equal to $9.31 per diluted share Operating income of $709 million, equal to $16.32 per diluted share versus first quarter 2023 net operating income of $443 million, equal to $11.31 per diluted share GAAP combined ratio of 88.8%, including 2.3 points of catastrophe losses, versus the first quarter 2023 figure of 91.2%, including 3.7 points of catastrophe losses The following table summarizes the Company’s Net Income and related financial metrics. Net income and operating income Q1 Year to Date Q1 Year to Date All values in USD millions except for per share amounts and percentages 2024 2024 2023 2023 Everest Group Net income (loss) 733 733 365 365 Operating income (loss) (1) 709 709 443 443 Net income (loss) per diluted common share 16.87 16.87 9.31 9.31 Net operating income (loss) per diluted common share 16.32 16.32 11.31 11.31 Net income (loss) return on average equity (annualized) 20.6% 20.6% 14.2% 14.2% After-tax operating income (loss) return on average equity (annualized) 20.0% 20.0% 17.2% 17.2% Notes (1) Refer to the reconciliation of net income to net operating income found on page 8 of this press release Shareholders' Equity and Book Value per Share Q1 Year to Date Q1 Year to Date All values in USD millions except for per share amounts and percentages 2024 2024 2023 2023 Beginning shareholders' equity 13,202 13,202 8,441 8,441 Net income (loss) 733 733 365 365 Change - unrealized gains (losses) - Fixed inc. investments (153 ) (153 ) 249 249 Dividends to shareholders (76 ) (76 ) (65 ) (65 ) Purchase of treasury shares (35 ) (35 ) — — Other (42 ) (42 ) 24 24 Ending shareholders' equity 13,628 13,628 9,014 9,014 Common shares outstanding 43.5 39.3 Book value per common share outstanding 313.55 229.49 Less: Unrealized appreciation/depreciation of fixed maturity investments ("URAD") (20.15 ) (37.15 ) Adjusted book value per common share outstanding excluding URAD 333.70 266.64 Change in BVPS adjusted for dividends 3.6 % 7.2 % Total Shareholder Return ("TSR") - Annualized 18.1 % 14.1 % Common share dividends paid - last 12 months 6.90 6.60 The following information summarizes the Company’s underwriting results, on a consolidated basis and by segment – Reinsurance and Insurance, with selected commentary on results by segment. Underwriting information - Everest Group Q1 Year to Date Q1 Year to Date Year on Year Change All values in USD millions except for percentages 2024 2024 2023 2023 Q1 Year to Date Gross written premium 4,411 4,411 3,743 3,743 17.9 % 17.9 % Net written premium 3,900 3,900 3,329 3,329 17.1 % 17.1 % Loss Ratio: Current year 58.9 % 58.9 % 59.7 % 59.7 % (0.8) pts (0.8) pts Prior year — % — % — % — % — pts — pts Catastrophe 2.3 % 2.3 % 3.7 % 3.7 % (1.4) pts (1.4) pts Total Loss ratio 61.3 % 61.3 % 63.4 % 63.4 % (2.1) pts (2.1) pts Commission and brokerage ratio 21.4 % 21.4 % 21.3 % 21.3 % 0.1 pts 0.1 pts Other underwriting expenses 6.1 % 6.1 % 6.4 % 6.4 % (0.3) pts (0.3) pts Combined ratio 88.8 % 88.8 % 91.2 % 91.2 % (2.4) pts (2.4) pts Attritional combined ratio (1) 86.5 % 86.5 % 87.6 % 87.6 % (1.1) pts (1.1) pts Pre-tax net catastrophe losses (2) 85 85 110 110 Pre-tax net unfavorable (favorable) prior year reserve development — — — — Notes (1) Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, prior year development, COVID-19 losses and losses from the Russia/Ukraine war. (2) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums Reinsurance Segment – Quarterly Highlights Gross written premiums grew 20.4% on a constant dollar basis and excluding reinstatement premiums, to approximately $3.2 billion. Growth was broad-based across geographies and lines as the flight to quality continues to accelerate globally. Attritional loss ratio improved 80 basis points over last year to 57.2%, while the attritional combined ratio improved 150 basis points to 84.4% versus a year ago. Combined ratio improved 350 basis points over the last year to 87.3%. Pre-tax catastrophe losses were $80 million net of estimated recoveries and reinstatement premiums, driven primarily by the Baltimore Bridge Collapse. Risk-adjusted returns remain very attractive, particularly in property and specialty lines. Underwriting information - Reinsurance segment Q1 Year to Date Q1 Year to Date Year on Year Change All values in USD millions except for percentages 2024 2024 2023 2023 Q1 Year to Date Gross written premium 3,175 3,175 2,620 2,620 21.2 % 21.2 % Net written premium 2,942 2,942 2,438 2,438 20.7 % 20.7 % Loss Ratio: Current year 57.2 % 57.2 % 57.9 % 57.9 % (0.7) pts (0.7) pts Prior year — % — % — % — % — pts — pts Catastrophe 2.9 % 2.9 % 5.1 % 5.1 % (2.2) pts (2.2) pts Total Loss ratio 60.2 % 60.2 % 63.0 % 63.0 % (2.8) pts (2.8) pts Commission and brokerage ratio 24.6 % 24.6 % 25.0 % 25.0 % (0.4) pts (0.4) pts Other underwriting expenses 2.6 % 2.6 % 2.8 % 2.8 % (0.2) pts (0.2) pts Combined ratio 87.3 % 87.3 % 90.8 % 90.8 % (3.5) pts (3.5) pts Attritional combined ratio (1) 84.4 % 84.4 % 85.9 % 85.9 % (1.5) pts (1.5) pts Pre-tax net catastrophe losses (2) 80 80 108 108 Pre-tax net prior year reserve development — — — — Notes (1) Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, prior year development, COVID-19 losses and losses from the Russia/Ukraine war. (2) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums Insurance Segment – Quarterly Highlights Gross written premiums rose to $1.2 billion, a 9.8% increase year-over-year in constant dollars, driven by a diversified mix of property and specialty lines, partially offset by lower written premiums in monoline workers' compensation and financial lines. Loss ratio improved 10 basis points over last year to 64.5%, while the attritional loss ratio improved 40 basis points over last year to 64.0%. Pre-tax catastrophe losses were $5 million, net of estimated recoveries and reinstatement premiums, relatively in-line with the prior year. Pricing continues to exceed loss trend overall and loss trend is stable. There was a meaningful acceleration in pricing across long-tail lines (excluding financial lines). Underwriting information - Insurance segment Q1 Year to Date Q1 Year to Date Year on Year Change All values in USD millions except for percentages 2024 2024 2023 2023 Q1 Year to Date Gross written premium 1,236 1,236 1,122 1,122 10.1 % 10.1 % Net written premium 958 958 891 891 7.5 % 7.5 % Loss Ratio: Current year 64.0 % 64.0 % 64.4 % 64.4 % (0.4) pts (0.4) pts Prior year — % — % — % — % — pts — pts Catastrophe 0.5 % 0.5 % 0.2 % 0.2 % 0.3 pts 0.3 pts Total Loss ratio 64.5 % 64.5 % 64.6 % 64.6 % (0.1) pts (0.1) pts Commission and brokerage ratio 12.0 % 12.0 % 12.0 % 12.0 % — pts — pts Other underwriting expenses 16.6 % 16.6 % 15.6 % 15.6 % 1.0 pts 1.0 pts Combined ratio 93.1 % 93.1 % 92.3 % 92.3 % 0.8 pts 0.8 pts Attritional combined ratio (1) 92.5 % 92.5 % 92.0 % 92.0 % 0.5 pts 0.5 pts Pre-tax net catastrophe losses (2) 5 5 2 2 Pre-tax net prior year reserve development — — — — Notes (1) Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, prior year development, COVID-19 losses and losses from the Russia/Ukraine war. (2) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums Investments and Shareholders’ Equity as of March 31, 2024 Total invested assets and cash of $38.1 billion versus $37.1 billion on December 31, 2023 Shareholders’ equity of $13.6 billion vs. $13.2 billion on December 31, 2023, including $876 million of unrealized net losses on AFS fixed maturity investments Shareholders’ equity excluding unrealized gains (losses) on AFS fixed maturity investments of $14.5 billion versus $13.9 billion on December 31, 2023 Book value per share of $313.55 versus $304.29 at December 31, 2023 Book value per share excluding unrealized gains (losses) on AFS fixed maturity investments of $333.70 versus $320.95 at December 31, 2023 Common share repurchases of $35.0 million during the quarter, representing 90,291 shares at an average price of $387.64 per share Common share dividends declared and paid in the quarter of $1.75 per share equal to $76 million This news release contains forward-looking statements within the meaning of the U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. Federal securities laws. These statements involve risks and uncertainties that could cause actual results to differ materially from those contained in forward-looking statements made on behalf of the Company. These risks and uncertainties include the impact of general economic conditions and conditions affecting the insurance and reinsurance industry, the adequacy of our reserves, our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, investment market and investment income fluctuations, trends in insured and paid losses, catastrophes, pandemic, regulatory and legal uncertainties and other factors described in our latest Annual Report on Form 10-K. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. About Everest Everest Group, Ltd. (Everest) is a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions that address customers’ most pressing challenges. Known for a 50-year track record of disciplined underwriting, capital and risk management, Everest, through its global operating affiliates, is committed to underwriting opportunity for colleagues, customers, shareholders, and communities worldwide. Everest common stock (NYSE: EG) is a component of the S&P 500 index. Additional information about Everest, our people, and our products can be found on our website at www.everestglobal.com. A conference call discussing the results will be held at 8:00 a.m. Eastern Time on April 30, 2024. The call will be available on the Internet through the Company’s website at https://www.everestglobal.com/investor-relations. Recipients are encouraged to visit the Company’s website to view supplemental financial information on the Company’s results. The supplemental information is located at www.everestglobal.com in the “Investors/Financials/Quarterly Results” section of the website. The supplemental financial information may also be obtained by contacting the Company directly. _______________________________________________ The Company generally uses after-tax operating income (loss), a non-GAAP financial measure, to evaluate its performance. After-tax operating income (loss) consists of net income (loss) excluding after-tax net gains (losses) on investments and after-tax net foreign exchange income (expense) as the following reconciliation displays: (Dollars in millions, except per share amounts) Three Months Ended March 31, Three Months Ended March 31, 2024 2023 2024 2023 (unaudited) (unaudited) Amount Per Diluted Share Amount Per Diluted Share Amount Per Diluted Share Amount Per Diluted Share After-tax operating income (loss) $ 709 $ 16.32 $ 443 $ 11.31 $ 709 $ 16.32 $ 443 $ 11.31 After-tax net gains (losses) on investments (6 ) (0.13 ) 6 0.14 (6 ) (0.13 ) 6 0.14 After-tax net foreign exchange income (expense) 30 0.69 (84 ) (2.14 ) 30 0.69 (84 ) (2.14 ) Net income (loss) $ 733 $ 16.87 $ 365 $ 9.31 $ 733 $ 16.87 $ 365 $ 9.31 (Some amounts may not reconcile due to rounding.) Although net gains (losses) on investments and net foreign exchange income (expense) are an integral part of the Company’s insurance operations, the determination of net gains (losses) on investments and foreign exchange income (expense) is independent of the insurance underwriting process. The Company believes that the level of net gains (losses) on investments and net foreign exchange income (expense) for any particular period are not indicative of the performance of the underlying business in that particular period. Providing only a GAAP presentation of net income (loss) makes it more difficult for users of the financial information to evaluate the Company’s success or failure in its basic business and may lead to incorrect or misleading assumptions and conclusions. The Company understands that the equity analysts who follow the Company focus on after-tax operating income (loss) in their analyses for the reasons discussed above. The Company provides after-tax operating income (loss) to investors so that they have what management believes to be a useful supplement to GAAP information concerning the Company’s performance. --Financial Details Follow-- EVEREST GROUP, LTD. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) Three Months Ended March 31, (In millions of U.S. dollars, except per share amounts) 2024 2023 (unaudited) REVENUES: Premiums earned $ 3,652 $ 3,100 Net investment income 457 260 Total net gains (losses) on investments (7 ) 5 Other income (expense) 31 (79 ) Total revenues 4,133 3,286 CLAIMS AND EXPENSES: Incurred losses and loss adjustment expenses 2,237 1,966 Commission, brokerage, taxes and fees 782 661 Other underwriting expenses 224 200 Corporate expenses 22 19 Interest, fees and bond issue cost amortization expense 37 32 Total claims and expenses 3,302 2,878 INCOME (LOSS) BEFORE TAXES 832 408 Income tax expense (benefit) 99 43 NET INCOME (LOSS) $ 733 $ 365 Other comprehensive income (loss), net of tax: Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period (158 ) 246 Reclassification adjustment for realized losses (gains) included in net income (loss) 5 3 Total URA(D) on securities arising during the period (153 ) 249 Foreign currency translation adjustments (38 ) 31 Reclassification adjustment for amortization of net (gain) loss included in net income (loss) — — Total benefit plan net gain (loss) for the period — — Total other comprehensive income (loss), net of tax (191 ) 280 COMPREHENSIVE INCOME (LOSS) $ 542 $ 645 EARNINGS PER COMMON SHARE: Basic $ 16.87 $ 9.31 Diluted 16.87 9.31 EVEREST GROUP, LTD. CONSOLIDATED BALANCE SHEETS March 31, December 31, (In millions of U.S. dollars, except par value per share) 2024 2023 (unaudited) ASSETS: Fixed maturities - available for sale, at fair value (amortized cost: 2024, $29,311; 2023, $28,568, credit allowances: 2024, $(46); 2023, $(48)) $ 28,297 $ 27,740 Fixed maturities - held to maturity, at amortized cost (fair value: 2024, $842; 2023, $854, net of credit allowances: 2024, $(9); 2023, $(8)) 840 855 Equity securities, at fair value 216 188 Other invested assets 4,854 4,794 Short-term investments 2,397 2,127 Cash 1,544 1,437 Total investments and cash 38,148 37,142 Accrued investment income 327 324 Premiums receivable (net of credit allowances: 2024, $(43); 2023, $(41)) 5,101 4,768 Reinsurance paid loss recoverables (net of credit allowances: 2024, $(27); 2023, $(26)) 233 164 Reinsurance unpaid loss recoverables 2,084 2,098 Funds held by reinsureds 1,155 1,135 Deferred acquisition costs 1,331 1,247 Prepaid reinsurance premiums 702 713 Income tax asset, net 823 868 Other assets (net of credit allowances: 2024, $(10); 2023, $(9)) 1,033 941 TOTAL ASSETS $ 50,937 $ 49,399 LIABILITIES: Reserve for losses and loss adjustment expenses 25,211 24,604 Unearned premium reserve 6,826 6,622 Funds held under reinsurance treaties 11 24 Amounts due to reinsurers 716 650 Losses in course of payment 168 171 Senior notes 2,349 2,349 Long-term notes 218 218 Borrowings from FHLB 819 819 Accrued interest on debt and borrowings 43 22 Unsettled securities payable 403 137 Other liabilities 543 582 Total liabilities 37,308 36,197 SHAREHOLDERS' EQUITY: Preferred shares, par value: $0.01; 50.0 shares authorized; no shares issued and outstanding — — Common shares, par value: $0.01; 200.0 shares authorized; (2024) 74.3 and (2023) 74.2 outstanding before treasury shares 1 1 Additional paid-in capital 3,768 3,773 Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) of $(137) at 2024 and $(99) at 2023 (1,125 ) (934 ) Treasury shares, at cost; 30.9 shares (2024) and 30.8 shares (2023) (3,943 ) (3,908 ) Retained earnings 14,927 14,270 Total shareholders' equity 13,628 13,202 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 50,937 $ 49,399 EVEREST GROUP, LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS Three Months Ended March 31, (In millions of U.S. dollars) 2024 2023 (unaudited) CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 733 $ 365 Adjustments to reconcile net income to net cash provided by operating activities: Decrease (increase) in premiums receivable (370 ) (259 ) Decrease (increase) in funds held by reinsureds, net (33 ) (17 ) Decrease (increase) in reinsurance recoverables (129 ) 7 Decrease (increase) in income taxes 82 41 Decrease (increase) in prepaid reinsurance premiums (14 ) 28 Increase (decrease) in reserve for losses and loss adjustment expenses 720 681 Increase (decrease) in unearned premiums 242 226 Increase (decrease) in amounts due to reinsurers 95 17 Increase (decrease) in losses in course of payment — 47 Change in equity adjustments in limited partnerships (59 ) (5 ) Distribution of limited partnership income 31 48 Change in other assets and liabilities, net (188 ) (121 ) Non-cash compensation expense 16 12 Amortization of bond premium (accrual of bond discount) (30 ) (1 ) Net (gains) losses on investments 7 (5 ) Net cash provided by (used in) operating activities 1,102 1,064 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from fixed maturities matured/called/repaid - available for sale 736 562 Proceeds from fixed maturities sold - available for sale 407 72 Proceeds from fixed maturities matured/called/repaid - held to maturity 45 28 Proceeds from equity securities sold — 46 Distributions from other invested assets 100 137 Cost of fixed maturities acquired - available for sale (1,971 ) (1,613 ) Cost of fixed maturities acquired - held to maturity (27 ) (11 ) Cost of equity securities acquired (33 ) (1 ) Cost of other invested assets acquired (138 ) (242 ) Net change in short-term investments (252 ) 4 Net change in unsettled securities transactions 284 267 Net cash provided by (used in) investing activities (849 ) (752 ) CASH FLOWS FROM FINANCING ACTIVITIES: Common shares issued (redeemed) during the period for share-based compensation, net of expense (21 ) (19 ) Purchase of treasury shares (35 ) — Dividends paid to shareholders (76 ) (65 ) Cost of shares withheld on settlements of share-based compensation awards (21 ) (19 ) Net cash provided by (used in) financing activities (153 ) (103 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH 7 3 Net increase (decrease) in cash 107 212 Cash, beginning of period 1,437 1,398 Cash, end of period $ 1,544 $ 1,610 SUPPLEMENTAL CASH FLOW INFORMATION: Income taxes paid (recovered) $ 16 $ 2 Interest paid 16 10 View source version on businesswire.com: https://www.businesswire.com/news/home/20240429589609/en/Contacts Media: Dawn Lauer Chief Communications Officer 908.300.7670 Investors: Matt Rohrmann Head of Investor Relations 908.604.7343 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Everest Reports First Quarter 2024 Results By: Everest Group, Ltd. via Business Wire April 29, 2024 at 16:15 PM EDT Net Income of $733 million and Operating Income of $709 million TSR1 of 18.1%; 20.6% Net Income ROE and 20.0% Operating Income ROE 88.8% Combined Ratio Resulting in Record Underwriting Income of $409 million Everest Group, Ltd. (NYSE: EG), a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions, today reported its first quarter 2024 results. First Quarter 2024 Highlights Net Income of $733 million; Operating Income of $709 million driven by underwriting margin improvement and strong net investment income generation Total Shareholder Return of 18.1% annualized; 20.6% Net Income ROE and 20.0% Operating Income ROE $4.4 billion in gross written premium with year-over-year growth of 17.2%2 for the Group, 20.4%2 for Reinsurance, and 9.8%2 for Insurance Combined ratios of 88.8% for the Group, 87.3% for Reinsurance and 93.1% for Insurance Attritional combined ratios of 86.5% for the Group, 84.4% for Reinsurance and 92.5% for Insurance Pre-tax underwriting income of $409 million, a company record, versus pre-tax underwriting income of $273 million in the prior year $85 million of pre-tax catastrophe losses net of recoveries and reinstatement premiums, primarily driven by the Francis Scott Key Bridge Collapse in Baltimore, versus $110 million in the prior year Net investment income improved to $457 million versus $260 million in the prior year first quarter, a company record, driven by a larger asset base and strong core fixed income returns Strong operating cashflow for the quarter of $1.1 billion, in-line with the prior year quarter Footnote 1 denotes annualized figure; represents Total Shareholder Return or "TSR" Footnote 2 denotes constant currency figure and excludes reinstatement premiums “Everest had a strong start to 2024, with first quarter results delivering significant profitability across all key metrics, including a Total Shareholder Return in excess of 18% and an operating return on equity of 20%,” said Juan C. Andrade, Everest President and CEO. “Group underwriting income increased 50% over the prior year to a quarterly record of $409 million with a combined ratio of 88.8%, driven by both of our underwriting franchises. Our reinsurance business continued to differentiate Everest during another outstanding January 1 renewal as the flight to quality accelerated. We gained market share with targeted clients, positioning the portfolio for attractive levels of profitability. In our insurance division, we advanced our disciplined expansion across global markets, while remaining focused on prudent risk selection and the bottom line. Additionally, our investment portfolio contributed a record $457 million in net investment income. With strong momentum across our underwriting businesses, we are executing on our three-year strategic plan, focused on generating consistent, industry leading financial returns.” Summary of First Quarter 2024 Net Income and Other Items Net Income of $733 million, equal to $16.87 per diluted share versus first quarter 2023 net income of $365 million, equal to $9.31 per diluted share Operating income of $709 million, equal to $16.32 per diluted share versus first quarter 2023 net operating income of $443 million, equal to $11.31 per diluted share GAAP combined ratio of 88.8%, including 2.3 points of catastrophe losses, versus the first quarter 2023 figure of 91.2%, including 3.7 points of catastrophe losses The following table summarizes the Company’s Net Income and related financial metrics. Net income and operating income Q1 Year to Date Q1 Year to Date All values in USD millions except for per share amounts and percentages 2024 2024 2023 2023 Everest Group Net income (loss) 733 733 365 365 Operating income (loss) (1) 709 709 443 443 Net income (loss) per diluted common share 16.87 16.87 9.31 9.31 Net operating income (loss) per diluted common share 16.32 16.32 11.31 11.31 Net income (loss) return on average equity (annualized) 20.6% 20.6% 14.2% 14.2% After-tax operating income (loss) return on average equity (annualized) 20.0% 20.0% 17.2% 17.2% Notes (1) Refer to the reconciliation of net income to net operating income found on page 8 of this press release Shareholders' Equity and Book Value per Share Q1 Year to Date Q1 Year to Date All values in USD millions except for per share amounts and percentages 2024 2024 2023 2023 Beginning shareholders' equity 13,202 13,202 8,441 8,441 Net income (loss) 733 733 365 365 Change - unrealized gains (losses) - Fixed inc. investments (153 ) (153 ) 249 249 Dividends to shareholders (76 ) (76 ) (65 ) (65 ) Purchase of treasury shares (35 ) (35 ) — — Other (42 ) (42 ) 24 24 Ending shareholders' equity 13,628 13,628 9,014 9,014 Common shares outstanding 43.5 39.3 Book value per common share outstanding 313.55 229.49 Less: Unrealized appreciation/depreciation of fixed maturity investments ("URAD") (20.15 ) (37.15 ) Adjusted book value per common share outstanding excluding URAD 333.70 266.64 Change in BVPS adjusted for dividends 3.6 % 7.2 % Total Shareholder Return ("TSR") - Annualized 18.1 % 14.1 % Common share dividends paid - last 12 months 6.90 6.60 The following information summarizes the Company’s underwriting results, on a consolidated basis and by segment – Reinsurance and Insurance, with selected commentary on results by segment. Underwriting information - Everest Group Q1 Year to Date Q1 Year to Date Year on Year Change All values in USD millions except for percentages 2024 2024 2023 2023 Q1 Year to Date Gross written premium 4,411 4,411 3,743 3,743 17.9 % 17.9 % Net written premium 3,900 3,900 3,329 3,329 17.1 % 17.1 % Loss Ratio: Current year 58.9 % 58.9 % 59.7 % 59.7 % (0.8) pts (0.8) pts Prior year — % — % — % — % — pts — pts Catastrophe 2.3 % 2.3 % 3.7 % 3.7 % (1.4) pts (1.4) pts Total Loss ratio 61.3 % 61.3 % 63.4 % 63.4 % (2.1) pts (2.1) pts Commission and brokerage ratio 21.4 % 21.4 % 21.3 % 21.3 % 0.1 pts 0.1 pts Other underwriting expenses 6.1 % 6.1 % 6.4 % 6.4 % (0.3) pts (0.3) pts Combined ratio 88.8 % 88.8 % 91.2 % 91.2 % (2.4) pts (2.4) pts Attritional combined ratio (1) 86.5 % 86.5 % 87.6 % 87.6 % (1.1) pts (1.1) pts Pre-tax net catastrophe losses (2) 85 85 110 110 Pre-tax net unfavorable (favorable) prior year reserve development — — — — Notes (1) Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, prior year development, COVID-19 losses and losses from the Russia/Ukraine war. (2) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums Reinsurance Segment – Quarterly Highlights Gross written premiums grew 20.4% on a constant dollar basis and excluding reinstatement premiums, to approximately $3.2 billion. Growth was broad-based across geographies and lines as the flight to quality continues to accelerate globally. Attritional loss ratio improved 80 basis points over last year to 57.2%, while the attritional combined ratio improved 150 basis points to 84.4% versus a year ago. Combined ratio improved 350 basis points over the last year to 87.3%. Pre-tax catastrophe losses were $80 million net of estimated recoveries and reinstatement premiums, driven primarily by the Baltimore Bridge Collapse. Risk-adjusted returns remain very attractive, particularly in property and specialty lines. Underwriting information - Reinsurance segment Q1 Year to Date Q1 Year to Date Year on Year Change All values in USD millions except for percentages 2024 2024 2023 2023 Q1 Year to Date Gross written premium 3,175 3,175 2,620 2,620 21.2 % 21.2 % Net written premium 2,942 2,942 2,438 2,438 20.7 % 20.7 % Loss Ratio: Current year 57.2 % 57.2 % 57.9 % 57.9 % (0.7) pts (0.7) pts Prior year — % — % — % — % — pts — pts Catastrophe 2.9 % 2.9 % 5.1 % 5.1 % (2.2) pts (2.2) pts Total Loss ratio 60.2 % 60.2 % 63.0 % 63.0 % (2.8) pts (2.8) pts Commission and brokerage ratio 24.6 % 24.6 % 25.0 % 25.0 % (0.4) pts (0.4) pts Other underwriting expenses 2.6 % 2.6 % 2.8 % 2.8 % (0.2) pts (0.2) pts Combined ratio 87.3 % 87.3 % 90.8 % 90.8 % (3.5) pts (3.5) pts Attritional combined ratio (1) 84.4 % 84.4 % 85.9 % 85.9 % (1.5) pts (1.5) pts Pre-tax net catastrophe losses (2) 80 80 108 108 Pre-tax net prior year reserve development — — — — Notes (1) Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, prior year development, COVID-19 losses and losses from the Russia/Ukraine war. (2) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums Insurance Segment – Quarterly Highlights Gross written premiums rose to $1.2 billion, a 9.8% increase year-over-year in constant dollars, driven by a diversified mix of property and specialty lines, partially offset by lower written premiums in monoline workers' compensation and financial lines. Loss ratio improved 10 basis points over last year to 64.5%, while the attritional loss ratio improved 40 basis points over last year to 64.0%. Pre-tax catastrophe losses were $5 million, net of estimated recoveries and reinstatement premiums, relatively in-line with the prior year. Pricing continues to exceed loss trend overall and loss trend is stable. There was a meaningful acceleration in pricing across long-tail lines (excluding financial lines). Underwriting information - Insurance segment Q1 Year to Date Q1 Year to Date Year on Year Change All values in USD millions except for percentages 2024 2024 2023 2023 Q1 Year to Date Gross written premium 1,236 1,236 1,122 1,122 10.1 % 10.1 % Net written premium 958 958 891 891 7.5 % 7.5 % Loss Ratio: Current year 64.0 % 64.0 % 64.4 % 64.4 % (0.4) pts (0.4) pts Prior year — % — % — % — % — pts — pts Catastrophe 0.5 % 0.5 % 0.2 % 0.2 % 0.3 pts 0.3 pts Total Loss ratio 64.5 % 64.5 % 64.6 % 64.6 % (0.1) pts (0.1) pts Commission and brokerage ratio 12.0 % 12.0 % 12.0 % 12.0 % — pts — pts Other underwriting expenses 16.6 % 16.6 % 15.6 % 15.6 % 1.0 pts 1.0 pts Combined ratio 93.1 % 93.1 % 92.3 % 92.3 % 0.8 pts 0.8 pts Attritional combined ratio (1) 92.5 % 92.5 % 92.0 % 92.0 % 0.5 pts 0.5 pts Pre-tax net catastrophe losses (2) 5 5 2 2 Pre-tax net prior year reserve development — — — — Notes (1) Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, prior year development, COVID-19 losses and losses from the Russia/Ukraine war. (2) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums Investments and Shareholders’ Equity as of March 31, 2024 Total invested assets and cash of $38.1 billion versus $37.1 billion on December 31, 2023 Shareholders’ equity of $13.6 billion vs. $13.2 billion on December 31, 2023, including $876 million of unrealized net losses on AFS fixed maturity investments Shareholders’ equity excluding unrealized gains (losses) on AFS fixed maturity investments of $14.5 billion versus $13.9 billion on December 31, 2023 Book value per share of $313.55 versus $304.29 at December 31, 2023 Book value per share excluding unrealized gains (losses) on AFS fixed maturity investments of $333.70 versus $320.95 at December 31, 2023 Common share repurchases of $35.0 million during the quarter, representing 90,291 shares at an average price of $387.64 per share Common share dividends declared and paid in the quarter of $1.75 per share equal to $76 million This news release contains forward-looking statements within the meaning of the U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. Federal securities laws. These statements involve risks and uncertainties that could cause actual results to differ materially from those contained in forward-looking statements made on behalf of the Company. These risks and uncertainties include the impact of general economic conditions and conditions affecting the insurance and reinsurance industry, the adequacy of our reserves, our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, investment market and investment income fluctuations, trends in insured and paid losses, catastrophes, pandemic, regulatory and legal uncertainties and other factors described in our latest Annual Report on Form 10-K. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. About Everest Everest Group, Ltd. (Everest) is a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions that address customers’ most pressing challenges. Known for a 50-year track record of disciplined underwriting, capital and risk management, Everest, through its global operating affiliates, is committed to underwriting opportunity for colleagues, customers, shareholders, and communities worldwide. Everest common stock (NYSE: EG) is a component of the S&P 500 index. Additional information about Everest, our people, and our products can be found on our website at www.everestglobal.com. A conference call discussing the results will be held at 8:00 a.m. Eastern Time on April 30, 2024. The call will be available on the Internet through the Company’s website at https://www.everestglobal.com/investor-relations. Recipients are encouraged to visit the Company’s website to view supplemental financial information on the Company’s results. The supplemental information is located at www.everestglobal.com in the “Investors/Financials/Quarterly Results” section of the website. The supplemental financial information may also be obtained by contacting the Company directly. _______________________________________________ The Company generally uses after-tax operating income (loss), a non-GAAP financial measure, to evaluate its performance. After-tax operating income (loss) consists of net income (loss) excluding after-tax net gains (losses) on investments and after-tax net foreign exchange income (expense) as the following reconciliation displays: (Dollars in millions, except per share amounts) Three Months Ended March 31, Three Months Ended March 31, 2024 2023 2024 2023 (unaudited) (unaudited) Amount Per Diluted Share Amount Per Diluted Share Amount Per Diluted Share Amount Per Diluted Share After-tax operating income (loss) $ 709 $ 16.32 $ 443 $ 11.31 $ 709 $ 16.32 $ 443 $ 11.31 After-tax net gains (losses) on investments (6 ) (0.13 ) 6 0.14 (6 ) (0.13 ) 6 0.14 After-tax net foreign exchange income (expense) 30 0.69 (84 ) (2.14 ) 30 0.69 (84 ) (2.14 ) Net income (loss) $ 733 $ 16.87 $ 365 $ 9.31 $ 733 $ 16.87 $ 365 $ 9.31 (Some amounts may not reconcile due to rounding.) Although net gains (losses) on investments and net foreign exchange income (expense) are an integral part of the Company’s insurance operations, the determination of net gains (losses) on investments and foreign exchange income (expense) is independent of the insurance underwriting process. The Company believes that the level of net gains (losses) on investments and net foreign exchange income (expense) for any particular period are not indicative of the performance of the underlying business in that particular period. Providing only a GAAP presentation of net income (loss) makes it more difficult for users of the financial information to evaluate the Company’s success or failure in its basic business and may lead to incorrect or misleading assumptions and conclusions. The Company understands that the equity analysts who follow the Company focus on after-tax operating income (loss) in their analyses for the reasons discussed above. The Company provides after-tax operating income (loss) to investors so that they have what management believes to be a useful supplement to GAAP information concerning the Company’s performance. --Financial Details Follow-- EVEREST GROUP, LTD. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) Three Months Ended March 31, (In millions of U.S. dollars, except per share amounts) 2024 2023 (unaudited) REVENUES: Premiums earned $ 3,652 $ 3,100 Net investment income 457 260 Total net gains (losses) on investments (7 ) 5 Other income (expense) 31 (79 ) Total revenues 4,133 3,286 CLAIMS AND EXPENSES: Incurred losses and loss adjustment expenses 2,237 1,966 Commission, brokerage, taxes and fees 782 661 Other underwriting expenses 224 200 Corporate expenses 22 19 Interest, fees and bond issue cost amortization expense 37 32 Total claims and expenses 3,302 2,878 INCOME (LOSS) BEFORE TAXES 832 408 Income tax expense (benefit) 99 43 NET INCOME (LOSS) $ 733 $ 365 Other comprehensive income (loss), net of tax: Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period (158 ) 246 Reclassification adjustment for realized losses (gains) included in net income (loss) 5 3 Total URA(D) on securities arising during the period (153 ) 249 Foreign currency translation adjustments (38 ) 31 Reclassification adjustment for amortization of net (gain) loss included in net income (loss) — — Total benefit plan net gain (loss) for the period — — Total other comprehensive income (loss), net of tax (191 ) 280 COMPREHENSIVE INCOME (LOSS) $ 542 $ 645 EARNINGS PER COMMON SHARE: Basic $ 16.87 $ 9.31 Diluted 16.87 9.31 EVEREST GROUP, LTD. CONSOLIDATED BALANCE SHEETS March 31, December 31, (In millions of U.S. dollars, except par value per share) 2024 2023 (unaudited) ASSETS: Fixed maturities - available for sale, at fair value (amortized cost: 2024, $29,311; 2023, $28,568, credit allowances: 2024, $(46); 2023, $(48)) $ 28,297 $ 27,740 Fixed maturities - held to maturity, at amortized cost (fair value: 2024, $842; 2023, $854, net of credit allowances: 2024, $(9); 2023, $(8)) 840 855 Equity securities, at fair value 216 188 Other invested assets 4,854 4,794 Short-term investments 2,397 2,127 Cash 1,544 1,437 Total investments and cash 38,148 37,142 Accrued investment income 327 324 Premiums receivable (net of credit allowances: 2024, $(43); 2023, $(41)) 5,101 4,768 Reinsurance paid loss recoverables (net of credit allowances: 2024, $(27); 2023, $(26)) 233 164 Reinsurance unpaid loss recoverables 2,084 2,098 Funds held by reinsureds 1,155 1,135 Deferred acquisition costs 1,331 1,247 Prepaid reinsurance premiums 702 713 Income tax asset, net 823 868 Other assets (net of credit allowances: 2024, $(10); 2023, $(9)) 1,033 941 TOTAL ASSETS $ 50,937 $ 49,399 LIABILITIES: Reserve for losses and loss adjustment expenses 25,211 24,604 Unearned premium reserve 6,826 6,622 Funds held under reinsurance treaties 11 24 Amounts due to reinsurers 716 650 Losses in course of payment 168 171 Senior notes 2,349 2,349 Long-term notes 218 218 Borrowings from FHLB 819 819 Accrued interest on debt and borrowings 43 22 Unsettled securities payable 403 137 Other liabilities 543 582 Total liabilities 37,308 36,197 SHAREHOLDERS' EQUITY: Preferred shares, par value: $0.01; 50.0 shares authorized; no shares issued and outstanding — — Common shares, par value: $0.01; 200.0 shares authorized; (2024) 74.3 and (2023) 74.2 outstanding before treasury shares 1 1 Additional paid-in capital 3,768 3,773 Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) of $(137) at 2024 and $(99) at 2023 (1,125 ) (934 ) Treasury shares, at cost; 30.9 shares (2024) and 30.8 shares (2023) (3,943 ) (3,908 ) Retained earnings 14,927 14,270 Total shareholders' equity 13,628 13,202 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 50,937 $ 49,399 EVEREST GROUP, LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS Three Months Ended March 31, (In millions of U.S. dollars) 2024 2023 (unaudited) CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 733 $ 365 Adjustments to reconcile net income to net cash provided by operating activities: Decrease (increase) in premiums receivable (370 ) (259 ) Decrease (increase) in funds held by reinsureds, net (33 ) (17 ) Decrease (increase) in reinsurance recoverables (129 ) 7 Decrease (increase) in income taxes 82 41 Decrease (increase) in prepaid reinsurance premiums (14 ) 28 Increase (decrease) in reserve for losses and loss adjustment expenses 720 681 Increase (decrease) in unearned premiums 242 226 Increase (decrease) in amounts due to reinsurers 95 17 Increase (decrease) in losses in course of payment — 47 Change in equity adjustments in limited partnerships (59 ) (5 ) Distribution of limited partnership income 31 48 Change in other assets and liabilities, net (188 ) (121 ) Non-cash compensation expense 16 12 Amortization of bond premium (accrual of bond discount) (30 ) (1 ) Net (gains) losses on investments 7 (5 ) Net cash provided by (used in) operating activities 1,102 1,064 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from fixed maturities matured/called/repaid - available for sale 736 562 Proceeds from fixed maturities sold - available for sale 407 72 Proceeds from fixed maturities matured/called/repaid - held to maturity 45 28 Proceeds from equity securities sold — 46 Distributions from other invested assets 100 137 Cost of fixed maturities acquired - available for sale (1,971 ) (1,613 ) Cost of fixed maturities acquired - held to maturity (27 ) (11 ) Cost of equity securities acquired (33 ) (1 ) Cost of other invested assets acquired (138 ) (242 ) Net change in short-term investments (252 ) 4 Net change in unsettled securities transactions 284 267 Net cash provided by (used in) investing activities (849 ) (752 ) CASH FLOWS FROM FINANCING ACTIVITIES: Common shares issued (redeemed) during the period for share-based compensation, net of expense (21 ) (19 ) Purchase of treasury shares (35 ) — Dividends paid to shareholders (76 ) (65 ) Cost of shares withheld on settlements of share-based compensation awards (21 ) (19 ) Net cash provided by (used in) financing activities (153 ) (103 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH 7 3 Net increase (decrease) in cash 107 212 Cash, beginning of period 1,437 1,398 Cash, end of period $ 1,544 $ 1,610 SUPPLEMENTAL CASH FLOW INFORMATION: Income taxes paid (recovered) $ 16 $ 2 Interest paid 16 10 View source version on businesswire.com: https://www.businesswire.com/news/home/20240429589609/en/Contacts Media: Dawn Lauer Chief Communications Officer 908.300.7670 Investors: Matt Rohrmann Head of Investor Relations 908.604.7343
Net Income of $733 million and Operating Income of $709 million TSR1 of 18.1%; 20.6% Net Income ROE and 20.0% Operating Income ROE 88.8% Combined Ratio Resulting in Record Underwriting Income of $409 million
Everest Group, Ltd. (NYSE: EG), a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions, today reported its first quarter 2024 results. First Quarter 2024 Highlights Net Income of $733 million; Operating Income of $709 million driven by underwriting margin improvement and strong net investment income generation Total Shareholder Return of 18.1% annualized; 20.6% Net Income ROE and 20.0% Operating Income ROE $4.4 billion in gross written premium with year-over-year growth of 17.2%2 for the Group, 20.4%2 for Reinsurance, and 9.8%2 for Insurance Combined ratios of 88.8% for the Group, 87.3% for Reinsurance and 93.1% for Insurance Attritional combined ratios of 86.5% for the Group, 84.4% for Reinsurance and 92.5% for Insurance Pre-tax underwriting income of $409 million, a company record, versus pre-tax underwriting income of $273 million in the prior year $85 million of pre-tax catastrophe losses net of recoveries and reinstatement premiums, primarily driven by the Francis Scott Key Bridge Collapse in Baltimore, versus $110 million in the prior year Net investment income improved to $457 million versus $260 million in the prior year first quarter, a company record, driven by a larger asset base and strong core fixed income returns Strong operating cashflow for the quarter of $1.1 billion, in-line with the prior year quarter Footnote 1 denotes annualized figure; represents Total Shareholder Return or "TSR" Footnote 2 denotes constant currency figure and excludes reinstatement premiums “Everest had a strong start to 2024, with first quarter results delivering significant profitability across all key metrics, including a Total Shareholder Return in excess of 18% and an operating return on equity of 20%,” said Juan C. Andrade, Everest President and CEO. “Group underwriting income increased 50% over the prior year to a quarterly record of $409 million with a combined ratio of 88.8%, driven by both of our underwriting franchises. Our reinsurance business continued to differentiate Everest during another outstanding January 1 renewal as the flight to quality accelerated. We gained market share with targeted clients, positioning the portfolio for attractive levels of profitability. In our insurance division, we advanced our disciplined expansion across global markets, while remaining focused on prudent risk selection and the bottom line. Additionally, our investment portfolio contributed a record $457 million in net investment income. With strong momentum across our underwriting businesses, we are executing on our three-year strategic plan, focused on generating consistent, industry leading financial returns.” Summary of First Quarter 2024 Net Income and Other Items Net Income of $733 million, equal to $16.87 per diluted share versus first quarter 2023 net income of $365 million, equal to $9.31 per diluted share Operating income of $709 million, equal to $16.32 per diluted share versus first quarter 2023 net operating income of $443 million, equal to $11.31 per diluted share GAAP combined ratio of 88.8%, including 2.3 points of catastrophe losses, versus the first quarter 2023 figure of 91.2%, including 3.7 points of catastrophe losses The following table summarizes the Company’s Net Income and related financial metrics. Net income and operating income Q1 Year to Date Q1 Year to Date All values in USD millions except for per share amounts and percentages 2024 2024 2023 2023 Everest Group Net income (loss) 733 733 365 365 Operating income (loss) (1) 709 709 443 443 Net income (loss) per diluted common share 16.87 16.87 9.31 9.31 Net operating income (loss) per diluted common share 16.32 16.32 11.31 11.31 Net income (loss) return on average equity (annualized) 20.6% 20.6% 14.2% 14.2% After-tax operating income (loss) return on average equity (annualized) 20.0% 20.0% 17.2% 17.2% Notes (1) Refer to the reconciliation of net income to net operating income found on page 8 of this press release Shareholders' Equity and Book Value per Share Q1 Year to Date Q1 Year to Date All values in USD millions except for per share amounts and percentages 2024 2024 2023 2023 Beginning shareholders' equity 13,202 13,202 8,441 8,441 Net income (loss) 733 733 365 365 Change - unrealized gains (losses) - Fixed inc. investments (153 ) (153 ) 249 249 Dividends to shareholders (76 ) (76 ) (65 ) (65 ) Purchase of treasury shares (35 ) (35 ) — — Other (42 ) (42 ) 24 24 Ending shareholders' equity 13,628 13,628 9,014 9,014 Common shares outstanding 43.5 39.3 Book value per common share outstanding 313.55 229.49 Less: Unrealized appreciation/depreciation of fixed maturity investments ("URAD") (20.15 ) (37.15 ) Adjusted book value per common share outstanding excluding URAD 333.70 266.64 Change in BVPS adjusted for dividends 3.6 % 7.2 % Total Shareholder Return ("TSR") - Annualized 18.1 % 14.1 % Common share dividends paid - last 12 months 6.90 6.60 The following information summarizes the Company’s underwriting results, on a consolidated basis and by segment – Reinsurance and Insurance, with selected commentary on results by segment. Underwriting information - Everest Group Q1 Year to Date Q1 Year to Date Year on Year Change All values in USD millions except for percentages 2024 2024 2023 2023 Q1 Year to Date Gross written premium 4,411 4,411 3,743 3,743 17.9 % 17.9 % Net written premium 3,900 3,900 3,329 3,329 17.1 % 17.1 % Loss Ratio: Current year 58.9 % 58.9 % 59.7 % 59.7 % (0.8) pts (0.8) pts Prior year — % — % — % — % — pts — pts Catastrophe 2.3 % 2.3 % 3.7 % 3.7 % (1.4) pts (1.4) pts Total Loss ratio 61.3 % 61.3 % 63.4 % 63.4 % (2.1) pts (2.1) pts Commission and brokerage ratio 21.4 % 21.4 % 21.3 % 21.3 % 0.1 pts 0.1 pts Other underwriting expenses 6.1 % 6.1 % 6.4 % 6.4 % (0.3) pts (0.3) pts Combined ratio 88.8 % 88.8 % 91.2 % 91.2 % (2.4) pts (2.4) pts Attritional combined ratio (1) 86.5 % 86.5 % 87.6 % 87.6 % (1.1) pts (1.1) pts Pre-tax net catastrophe losses (2) 85 85 110 110 Pre-tax net unfavorable (favorable) prior year reserve development — — — — Notes (1) Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, prior year development, COVID-19 losses and losses from the Russia/Ukraine war. (2) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums Reinsurance Segment – Quarterly Highlights Gross written premiums grew 20.4% on a constant dollar basis and excluding reinstatement premiums, to approximately $3.2 billion. Growth was broad-based across geographies and lines as the flight to quality continues to accelerate globally. Attritional loss ratio improved 80 basis points over last year to 57.2%, while the attritional combined ratio improved 150 basis points to 84.4% versus a year ago. Combined ratio improved 350 basis points over the last year to 87.3%. Pre-tax catastrophe losses were $80 million net of estimated recoveries and reinstatement premiums, driven primarily by the Baltimore Bridge Collapse. Risk-adjusted returns remain very attractive, particularly in property and specialty lines. Underwriting information - Reinsurance segment Q1 Year to Date Q1 Year to Date Year on Year Change All values in USD millions except for percentages 2024 2024 2023 2023 Q1 Year to Date Gross written premium 3,175 3,175 2,620 2,620 21.2 % 21.2 % Net written premium 2,942 2,942 2,438 2,438 20.7 % 20.7 % Loss Ratio: Current year 57.2 % 57.2 % 57.9 % 57.9 % (0.7) pts (0.7) pts Prior year — % — % — % — % — pts — pts Catastrophe 2.9 % 2.9 % 5.1 % 5.1 % (2.2) pts (2.2) pts Total Loss ratio 60.2 % 60.2 % 63.0 % 63.0 % (2.8) pts (2.8) pts Commission and brokerage ratio 24.6 % 24.6 % 25.0 % 25.0 % (0.4) pts (0.4) pts Other underwriting expenses 2.6 % 2.6 % 2.8 % 2.8 % (0.2) pts (0.2) pts Combined ratio 87.3 % 87.3 % 90.8 % 90.8 % (3.5) pts (3.5) pts Attritional combined ratio (1) 84.4 % 84.4 % 85.9 % 85.9 % (1.5) pts (1.5) pts Pre-tax net catastrophe losses (2) 80 80 108 108 Pre-tax net prior year reserve development — — — — Notes (1) Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, prior year development, COVID-19 losses and losses from the Russia/Ukraine war. (2) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums Insurance Segment – Quarterly Highlights Gross written premiums rose to $1.2 billion, a 9.8% increase year-over-year in constant dollars, driven by a diversified mix of property and specialty lines, partially offset by lower written premiums in monoline workers' compensation and financial lines. Loss ratio improved 10 basis points over last year to 64.5%, while the attritional loss ratio improved 40 basis points over last year to 64.0%. Pre-tax catastrophe losses were $5 million, net of estimated recoveries and reinstatement premiums, relatively in-line with the prior year. Pricing continues to exceed loss trend overall and loss trend is stable. There was a meaningful acceleration in pricing across long-tail lines (excluding financial lines). Underwriting information - Insurance segment Q1 Year to Date Q1 Year to Date Year on Year Change All values in USD millions except for percentages 2024 2024 2023 2023 Q1 Year to Date Gross written premium 1,236 1,236 1,122 1,122 10.1 % 10.1 % Net written premium 958 958 891 891 7.5 % 7.5 % Loss Ratio: Current year 64.0 % 64.0 % 64.4 % 64.4 % (0.4) pts (0.4) pts Prior year — % — % — % — % — pts — pts Catastrophe 0.5 % 0.5 % 0.2 % 0.2 % 0.3 pts 0.3 pts Total Loss ratio 64.5 % 64.5 % 64.6 % 64.6 % (0.1) pts (0.1) pts Commission and brokerage ratio 12.0 % 12.0 % 12.0 % 12.0 % — pts — pts Other underwriting expenses 16.6 % 16.6 % 15.6 % 15.6 % 1.0 pts 1.0 pts Combined ratio 93.1 % 93.1 % 92.3 % 92.3 % 0.8 pts 0.8 pts Attritional combined ratio (1) 92.5 % 92.5 % 92.0 % 92.0 % 0.5 pts 0.5 pts Pre-tax net catastrophe losses (2) 5 5 2 2 Pre-tax net prior year reserve development — — — — Notes (1) Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, prior year development, COVID-19 losses and losses from the Russia/Ukraine war. (2) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums Investments and Shareholders’ Equity as of March 31, 2024 Total invested assets and cash of $38.1 billion versus $37.1 billion on December 31, 2023 Shareholders’ equity of $13.6 billion vs. $13.2 billion on December 31, 2023, including $876 million of unrealized net losses on AFS fixed maturity investments Shareholders’ equity excluding unrealized gains (losses) on AFS fixed maturity investments of $14.5 billion versus $13.9 billion on December 31, 2023 Book value per share of $313.55 versus $304.29 at December 31, 2023 Book value per share excluding unrealized gains (losses) on AFS fixed maturity investments of $333.70 versus $320.95 at December 31, 2023 Common share repurchases of $35.0 million during the quarter, representing 90,291 shares at an average price of $387.64 per share Common share dividends declared and paid in the quarter of $1.75 per share equal to $76 million This news release contains forward-looking statements within the meaning of the U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. Federal securities laws. These statements involve risks and uncertainties that could cause actual results to differ materially from those contained in forward-looking statements made on behalf of the Company. These risks and uncertainties include the impact of general economic conditions and conditions affecting the insurance and reinsurance industry, the adequacy of our reserves, our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, investment market and investment income fluctuations, trends in insured and paid losses, catastrophes, pandemic, regulatory and legal uncertainties and other factors described in our latest Annual Report on Form 10-K. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. About Everest Everest Group, Ltd. (Everest) is a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions that address customers’ most pressing challenges. Known for a 50-year track record of disciplined underwriting, capital and risk management, Everest, through its global operating affiliates, is committed to underwriting opportunity for colleagues, customers, shareholders, and communities worldwide. Everest common stock (NYSE: EG) is a component of the S&P 500 index. Additional information about Everest, our people, and our products can be found on our website at www.everestglobal.com. A conference call discussing the results will be held at 8:00 a.m. Eastern Time on April 30, 2024. The call will be available on the Internet through the Company’s website at https://www.everestglobal.com/investor-relations. Recipients are encouraged to visit the Company’s website to view supplemental financial information on the Company’s results. The supplemental information is located at www.everestglobal.com in the “Investors/Financials/Quarterly Results” section of the website. The supplemental financial information may also be obtained by contacting the Company directly. _______________________________________________ The Company generally uses after-tax operating income (loss), a non-GAAP financial measure, to evaluate its performance. After-tax operating income (loss) consists of net income (loss) excluding after-tax net gains (losses) on investments and after-tax net foreign exchange income (expense) as the following reconciliation displays: (Dollars in millions, except per share amounts) Three Months Ended March 31, Three Months Ended March 31, 2024 2023 2024 2023 (unaudited) (unaudited) Amount Per Diluted Share Amount Per Diluted Share Amount Per Diluted Share Amount Per Diluted Share After-tax operating income (loss) $ 709 $ 16.32 $ 443 $ 11.31 $ 709 $ 16.32 $ 443 $ 11.31 After-tax net gains (losses) on investments (6 ) (0.13 ) 6 0.14 (6 ) (0.13 ) 6 0.14 After-tax net foreign exchange income (expense) 30 0.69 (84 ) (2.14 ) 30 0.69 (84 ) (2.14 ) Net income (loss) $ 733 $ 16.87 $ 365 $ 9.31 $ 733 $ 16.87 $ 365 $ 9.31 (Some amounts may not reconcile due to rounding.) Although net gains (losses) on investments and net foreign exchange income (expense) are an integral part of the Company’s insurance operations, the determination of net gains (losses) on investments and foreign exchange income (expense) is independent of the insurance underwriting process. The Company believes that the level of net gains (losses) on investments and net foreign exchange income (expense) for any particular period are not indicative of the performance of the underlying business in that particular period. Providing only a GAAP presentation of net income (loss) makes it more difficult for users of the financial information to evaluate the Company’s success or failure in its basic business and may lead to incorrect or misleading assumptions and conclusions. The Company understands that the equity analysts who follow the Company focus on after-tax operating income (loss) in their analyses for the reasons discussed above. The Company provides after-tax operating income (loss) to investors so that they have what management believes to be a useful supplement to GAAP information concerning the Company’s performance. --Financial Details Follow-- EVEREST GROUP, LTD. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) Three Months Ended March 31, (In millions of U.S. dollars, except per share amounts) 2024 2023 (unaudited) REVENUES: Premiums earned $ 3,652 $ 3,100 Net investment income 457 260 Total net gains (losses) on investments (7 ) 5 Other income (expense) 31 (79 ) Total revenues 4,133 3,286 CLAIMS AND EXPENSES: Incurred losses and loss adjustment expenses 2,237 1,966 Commission, brokerage, taxes and fees 782 661 Other underwriting expenses 224 200 Corporate expenses 22 19 Interest, fees and bond issue cost amortization expense 37 32 Total claims and expenses 3,302 2,878 INCOME (LOSS) BEFORE TAXES 832 408 Income tax expense (benefit) 99 43 NET INCOME (LOSS) $ 733 $ 365 Other comprehensive income (loss), net of tax: Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period (158 ) 246 Reclassification adjustment for realized losses (gains) included in net income (loss) 5 3 Total URA(D) on securities arising during the period (153 ) 249 Foreign currency translation adjustments (38 ) 31 Reclassification adjustment for amortization of net (gain) loss included in net income (loss) — — Total benefit plan net gain (loss) for the period — — Total other comprehensive income (loss), net of tax (191 ) 280 COMPREHENSIVE INCOME (LOSS) $ 542 $ 645 EARNINGS PER COMMON SHARE: Basic $ 16.87 $ 9.31 Diluted 16.87 9.31 EVEREST GROUP, LTD. CONSOLIDATED BALANCE SHEETS March 31, December 31, (In millions of U.S. dollars, except par value per share) 2024 2023 (unaudited) ASSETS: Fixed maturities - available for sale, at fair value (amortized cost: 2024, $29,311; 2023, $28,568, credit allowances: 2024, $(46); 2023, $(48)) $ 28,297 $ 27,740 Fixed maturities - held to maturity, at amortized cost (fair value: 2024, $842; 2023, $854, net of credit allowances: 2024, $(9); 2023, $(8)) 840 855 Equity securities, at fair value 216 188 Other invested assets 4,854 4,794 Short-term investments 2,397 2,127 Cash 1,544 1,437 Total investments and cash 38,148 37,142 Accrued investment income 327 324 Premiums receivable (net of credit allowances: 2024, $(43); 2023, $(41)) 5,101 4,768 Reinsurance paid loss recoverables (net of credit allowances: 2024, $(27); 2023, $(26)) 233 164 Reinsurance unpaid loss recoverables 2,084 2,098 Funds held by reinsureds 1,155 1,135 Deferred acquisition costs 1,331 1,247 Prepaid reinsurance premiums 702 713 Income tax asset, net 823 868 Other assets (net of credit allowances: 2024, $(10); 2023, $(9)) 1,033 941 TOTAL ASSETS $ 50,937 $ 49,399 LIABILITIES: Reserve for losses and loss adjustment expenses 25,211 24,604 Unearned premium reserve 6,826 6,622 Funds held under reinsurance treaties 11 24 Amounts due to reinsurers 716 650 Losses in course of payment 168 171 Senior notes 2,349 2,349 Long-term notes 218 218 Borrowings from FHLB 819 819 Accrued interest on debt and borrowings 43 22 Unsettled securities payable 403 137 Other liabilities 543 582 Total liabilities 37,308 36,197 SHAREHOLDERS' EQUITY: Preferred shares, par value: $0.01; 50.0 shares authorized; no shares issued and outstanding — — Common shares, par value: $0.01; 200.0 shares authorized; (2024) 74.3 and (2023) 74.2 outstanding before treasury shares 1 1 Additional paid-in capital 3,768 3,773 Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) of $(137) at 2024 and $(99) at 2023 (1,125 ) (934 ) Treasury shares, at cost; 30.9 shares (2024) and 30.8 shares (2023) (3,943 ) (3,908 ) Retained earnings 14,927 14,270 Total shareholders' equity 13,628 13,202 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 50,937 $ 49,399 EVEREST GROUP, LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS Three Months Ended March 31, (In millions of U.S. dollars) 2024 2023 (unaudited) CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 733 $ 365 Adjustments to reconcile net income to net cash provided by operating activities: Decrease (increase) in premiums receivable (370 ) (259 ) Decrease (increase) in funds held by reinsureds, net (33 ) (17 ) Decrease (increase) in reinsurance recoverables (129 ) 7 Decrease (increase) in income taxes 82 41 Decrease (increase) in prepaid reinsurance premiums (14 ) 28 Increase (decrease) in reserve for losses and loss adjustment expenses 720 681 Increase (decrease) in unearned premiums 242 226 Increase (decrease) in amounts due to reinsurers 95 17 Increase (decrease) in losses in course of payment — 47 Change in equity adjustments in limited partnerships (59 ) (5 ) Distribution of limited partnership income 31 48 Change in other assets and liabilities, net (188 ) (121 ) Non-cash compensation expense 16 12 Amortization of bond premium (accrual of bond discount) (30 ) (1 ) Net (gains) losses on investments 7 (5 ) Net cash provided by (used in) operating activities 1,102 1,064 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from fixed maturities matured/called/repaid - available for sale 736 562 Proceeds from fixed maturities sold - available for sale 407 72 Proceeds from fixed maturities matured/called/repaid - held to maturity 45 28 Proceeds from equity securities sold — 46 Distributions from other invested assets 100 137 Cost of fixed maturities acquired - available for sale (1,971 ) (1,613 ) Cost of fixed maturities acquired - held to maturity (27 ) (11 ) Cost of equity securities acquired (33 ) (1 ) Cost of other invested assets acquired (138 ) (242 ) Net change in short-term investments (252 ) 4 Net change in unsettled securities transactions 284 267 Net cash provided by (used in) investing activities (849 ) (752 ) CASH FLOWS FROM FINANCING ACTIVITIES: Common shares issued (redeemed) during the period for share-based compensation, net of expense (21 ) (19 ) Purchase of treasury shares (35 ) — Dividends paid to shareholders (76 ) (65 ) Cost of shares withheld on settlements of share-based compensation awards (21 ) (19 ) Net cash provided by (used in) financing activities (153 ) (103 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH 7 3 Net increase (decrease) in cash 107 212 Cash, beginning of period 1,437 1,398 Cash, end of period $ 1,544 $ 1,610 SUPPLEMENTAL CASH FLOW INFORMATION: Income taxes paid (recovered) $ 16 $ 2 Interest paid 16 10 View source version on businesswire.com: https://www.businesswire.com/news/home/20240429589609/en/
Media: Dawn Lauer Chief Communications Officer 908.300.7670 Investors: Matt Rohrmann Head of Investor Relations 908.604.7343