19.5%¹ GWP Growth and 16.2% Underwriting Income Growth, Led by Record Reinsurance Growth and Strong Pricing Momentum

14.2% Net Income ROE, 17.2 % Operating ROE

91.2% Combined Ratio and 87.5% Attritional Combined Ratio

Everest Re Group, Ltd. (“Everest” or the “Group”) today reported its first quarter 2023 results.

First Quarter 2023 Highlights

• Strong year-over-year improvements in Net Operating Income of $443 million, and Net Income of $365 million driven by continued underwriting margin improvement
• 14.1% Total Shareholder Return, 14.2% Net Income ROE, and 17.2% Operating Income ROE
• $3.7 billion in gross written premium (“GWP”) with year-over-year growth of 19.5% in constant dollars as reported for the Group, 23.2% in constant dollars excluding reinstatements for Reinsurance and 11.5% in constant dollars for Insurance
• Combined ratios of 91.2% for the Group, 90.8% for Reinsurance and 92.4% for Insurance driven by improved pricing and lower catastrophe losses year-over-year
• Strong attritional combined ratios of 87.5% for the Group, 85.9% for Reinsurance and 91.7% for Insurance
• Pre-tax underwriting income of $273 million, third highest result over past 5 years
• $110 million of pre-tax catastrophe losses net of estimated recoveries and reinstatement premiums driven by the Turkey earthquake as well as the New Zealand floods and cyclone.
• Year-over-year improvement in net investment income of $260 million, driven by stronger fixed income returns as new money yields remain attractive
• Strong operating cashflow for the quarter of $1.1 billion versus $846 million in the first quarter 2022

“Everest had a strong start to the year, with first quarter results that delivered significant underwriting profit, a 17.2% operating return on equity and a total shareholder return in excess of 14%,” said Juan C. Andrade, Everest President & CEO. “We delivered profitable growth across both underwriting franchises, particularly in reinsurance, where we continued to drive expanding margins. With our industry leading position, ongoing flight to quality, and relentless execution, we are well equipped to take advantage of market tailwinds. We also continued to invest in scaling our primary business in a disciplined manner. The insurance division generated an increased year-over-year underwriting profit by capitalizing on our diversified portfolio and improved pricing conditions. We advanced many of our strategic objectives this quarter, resulting in improved risk adjusted returns across the portfolio, and continued to manage natural catastrophe volatility demonstrated by the limited exposure to the severe weather events in North America during the quarter. We remain focused on bolstering our world class talent and I am confident in their ability to capitalize on attractive market opportunities in the year ahead.”

Summary of First Quarter 2023 Net Income and Other Items

• Net Income of $365 million, equal to $9.31 per diluted share versus first quarter 2022 net income of $298 million, equal to $7.56 per diluted share
• Net operating income of $443 million, equal to $11.31 per diluted share versus first quarter 2022 net operating income of $406 million, equal to $10.31 per diluted share
• GAAP combined ratio of 91.2% including 3.7 points of catastrophe losses versus the first quarter 2022 figures of 91.6% including 4.1 points of catastrophe losses

The following table summarizes the Company’s Net Income and related financial metrics.

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.

Reinsurance Segment – Quarterly Highlights

• Gross written premiums grew 23.2% on a constant dollar basis to $2.64 billion, a new quarterly premium record for the segment, and broad-based, double-digit growth across every business unit.
• Growth was driven by 19.4% growth in property pro-rata, 27.5% growth in property Cat, 22.1% in Casualty pro-rata as a flight to quality continues across various markets.
• Robust pricing momentum at April 1 renewal continued, with Cat pricing up over 44% in North America and 26% Internationally, with improved terms/conditions.
• 90-basis point improvement in the attritional loss ratio to 58.0% year over year and an attritional combined ratio of 85.9% vs 86.2% a year ago.
• Pre-tax catastrophe losses of $108 million net of estimated recoveries and reinstatement premiums, compared with $110 million a year ago. Catastrophe losses driven by the Turkey Earthquake as well as the New Zealand floods and cyclone.

Insurance Segment – Quarterly Highlights

• Gross written premiums of $1.1 billion, an 11.5% increase year-over-year in constant dollars, led by a diversified mix of property, marine, energy and other specialty lines.
• Strong underwriting profit of $66 million, up 12% year-over-year.
• Lower catastrophe losses in the quarter at $2 million.
• Attritional loss ratio of 64.2% slightly up over prior year resulting in attritional combined ratio of 91.7%.
• The quarter included a one-time current accident-year adjustment of $15 million related to a non-renewed medical stop loss book.
• Disciplined expense management of 27.7%, an improvement of 10 basis points over prior year.
• Rate accelerated sequentially for the second straight quarter, driven by property and umbrella.

Investments and Shareholders’ Equity as of March 31, 2023

• Total invested assets and cash of $31.4 billion versus $29.9 billion on December 31, 2022
• Shareholders’ equity of $9.0 billion vs. $8.4 billion on December 31, 2022, includes $1.5 billion of unrealized net losses on AFS fixed maturity investments
• Shareholders’ equity excluding unrealized gains (losses) on AFS fixed maturity investments of $10.5 billion versus $10.1 billion on December 31, 2022
• Book value per share of $229.49 versus $215.54 at December 31, 2022
• Book value per share excluding unrealized gains (losses) on AFS fixed maturity investments of $266.64 versus $259.18 at December 31, 2022
• Common share dividends declared and paid in the quarter of $1.65 per share equal to $65 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 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: RE) 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.everestre.com.

A conference call discussing the results will be held at 8:00 a.m. Eastern Time on May 2, 2023. The call will be available on the Internet through the Company’s web site at everestre.com/investors.

Recipients are encouraged to visit the Company’s web site to view supplemental financial information on the Company’s results. The supplemental information is located at www.everestre.com in the “Investors/Financials/Quarterly Results” section of the website. The supplemental financial information may also be obtained by contacting the Company directly.

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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:

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 is 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.

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