Everest Group, Ltd. · NYSE:EG
Everest — Q4 2024 Earnings Presentation
17 slides from Everest's earnings presentation, Jan 27, 2025
Slide 1: Preliminary Reserving Results Presentation Fourth Quarter 2024
Preliminary Reserving Results Presentation Fourth Quarter 2024
Slide 2: Forward-Looking Statements
This presentation and the accompanying remarks contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal
Slide 3: 4Q 2024 Reserve Action Overview
Amount (pre-tax)1 Reinsurance Segment U.S. Casualty Reinsurance2 (adverse) $684 million Property, Mortgage, and Other (favorable) $684 million Total $0 million Insurance Segment U.S. Casualty Insurance3 PYD (adverse) $1,072 million U.S. Casualty Insurance4 2024 AY (adverse) $206 million Total (adver
Slide 4: U.S. Casualty Insurance: Loss Landscape
U.S. Casualty Insurance: Loss Landscape Loss experience exacerbated by social inflation Elevated loss trend driven by legal system abuse in certain U.S. casualty lines, including General Liability, Excess / Umbrella, Commercial Auto Principal drivers of social inflation include: • Increased frequenc
Slide 5: Transformation Progress and Everest North America Insurance Response
New Leadership Team Balancing Portfolio Exiting Non-Core Business Aggressive Underwriting Action Improving Value Proposition Replaced key divisional leaders Bolstered talent across U.S. casualty lines Redefined sales and distribution roles at the regional level Accelerating growth in most attractive
Slide 6: The Future of Everest Insurance
Everest remains committed to the development of a leading global insurance business The Future of Everest Insurance International Insurance • Continuing to invest in capabilities and scaling the platform at an improving expense ratio • Deepening penetration of existing core country operations • Cont
Slide 7: Reinsurance U.S. Casualty Reserves
Everest Reinsurance U.S. Casualty Reserves U.S. Casualty Ultimate Loss Ratio by Underwriting Year Reinsurance Segment: 72% of Group’s Net Reserves $684M of U.S. Casualty reserve strengthening driven by increased conservatism around social inflation, largely offset by well-seasoned releases in proper
Slide 8: Insurance Segment Reserves as of December 31, 2024
Insurance Segment Reserves as of December 31, 2024 Everest Insurance® U.S. Casualty Reserves $1.3B reserve strengthening follows significant organizational transformation of U.S. casualty platform Includes 2024 accident year strengthening of $206M in U.S. casualty lines Casualty reserves include ris
Slide 9: Other Segment Reserves
Everest Other Segment Reserves Newly created “Other” segment includes the recently sold sports and leisure insurance business, legacy asbestos and environmental, and other discontinued insurance programs and coverage classes in run-off Segment net reserves of $1.1B as of December 31, 2024 $425M of r
Slide 10: Prospective Approach to U.S. Casualty Insurance Loss Picks
Prospective Approach to U.S. Casualty Insurance Loss Picks U.S. Casualty Industry Loss Trend Assumption Economic Inflation9 Social Inflation10 Other11 Loss Trend12 U.S. Casualty Insurance Loss Pick Approach Everest U.S. casualty insurance loss pick approach going forward: • Utilizing updated loss co
Slide 11: Targeting Mid-Teens Total Shareholder Return Over the Cycle
Targeting Mid-Teens Total Shareholder Return14 Over the Cycle Today’s action: aggressive response to U.S. casualty lines reserves in all segments Organic international insurance expansion performing strongly Growing high-quality investment portfolio Tier-1 lead market global reinsurance franchise Ra
Slide 12: Appendix
Appendix 12Everest Group, Ltd.
Slide 13: Reinsurance U.S. Casualty Reserving Detail
Everest Reinsurance U.S. Casualty Reserving Detail Underwriting Year Reserving Detail 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 4Q'23 $20 $49 $92 $215 $453 $774 $1,119 $1,233 $639 4Q'24 $30 $51 $68 $199 $306 $647 $995 $1,134 $1,470 $533 4Q'23 $96 $160 $228 $447 $721 $996 $1,292 $1,317 $658 4
Slide 14: Insurance U.S. Casualty Reserving Detail
Everest Insurance® U.S. Casualty Reserving Detail Accident Year Reserving Detail 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 4Q'23 $1 $3 $15 $25 $58 $103 $204 $385 $653 4Q'24 $1 $3 $3 $24 $78 $193 $318 $498 $749 $925 4Q'23 $4 $12 $24 $52 $135 $185 $319 $495 $709 4Q'24 $3 $10 $11 $42 $128 $246
Slide 15: Other Segment Reserving Detail
Everest Other Segment Reserving Detail Accident Year Reserving Detail Note: For additional information please refer to endnotes on page 16. 15Everest Group, Ltd. 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 IBNR ($M) 4Q'24 $1 $1 $3 $8 $25 $45 $63 $123 $155 $124 Total Reserves ($M) 4Q'24 $1 $3 $
Slide 16: Endnotes
Endnotes 1 Amounts may not sum due to rounding. 2 U.S. Casualty Reinsurance contains all treaty and facultative casualty classes writing predominantly U.S. (but also a small amount of non-U.S.) exposures in auto liability, excess / umbrella, and general liability lines, and also a small portion of w
Slide 17: Glossary
Glossary Accident Year (“AY”): Accident year refers to the year in which a claim occurs. Underwriting Year (“UY”): We rely primarily on underwriting year data for our internal reinsurance reserve analyses, as accident year is not generally available for contracts written on a pro rata basis. Underwr