Everest Group, Ltd. · NYSE:EG
Everest — Everest Re Group — Q3 2020 Earnings Presentation
20 slides from Everest's earnings presentation, 2020
Slide 1: Everest Re Group, Ltd. Investor Presentation Third Quarter 2020
EVEREST RE GROUP, LTD. I N V E S T O R P R E S E N TAT I O N Third Quarter 2020 Everest Re Group, Ltd Seon Place, 4th Floor 141 Front Street, PO Box HM 845 Hamilton HM 19, Bermuda
Slide 2: Cautionary Note on Forward-Looking Statements
CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS This presentation 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 securi
Slide 3: Everest's Drivers of Success
EVEREST’S DRIVERS OF SUCCESS Our focus on sustainably growing a balanced and diversified insurance and reinsurance portfolio and the relentless execution of our strategies to deliver underwriting profitability positions Everest to deliver shareholder value in every stage of the market cycle. DIVERSI
Slide 4: Disciplined Growth and Diversification
DISCIPLINED GROWTH AND DIVERSIFICATION PROFITABLE GROWTH THROUGH DIVERSIFICATION BY DIVISION, CLASS & GEOGRAPHY GROW TH ACROSS THE DIVISIONS: BALANCED MIX OF BUSINESS: REINSURANCE DIVISION GROSS W RITTEN PREMIUMS (MILLIONS) $9,133.4 2015 2019 9% $5,891.7 27% 70% 34 57 73 % % 74% % 26% 30% 2015 2019
Slide 5: Everest Insurance Division
EVEREST INSURANCE® DIVISION A PREMIER GLOBAL SPECIALTY INSURANCE OPERATION QUARTERLY HIGHLIGHTS GROSS W RITTEN PREMIUM $2,777.5 $2,328.7 Solid execution and continued growth in the quarter $2,059.2 $2,250.6 $1,787.0 $1,532.3 Continued underlying margin improvement The Everest Insurance® innova
Slide 6: Everest Reinsurance Division
EVEREST REINSURANCE DIVISION A LEADING GLOBAL REINSURER QUARTERLY HIGHLIGHTS GROSS W RITTEN PREMIUM Strong growth in an improving market $6,224.6 $6,355.9 $5,114.7 $5,403.1 Underwrote a high performing book of business with higher $4,359.4 $4,246.8 economic returns and lower volatility Receive
Slide 7: Robust Financial Strength
ROBUST FINANCIAL STRENGTH STRONG CAPITAL BASE, LOW DEBT LEVERAGE, AND TOP TIER RATINGS Balance Sheet $9.6B 6.9% $23.1B As of 3Q 2020 GAAP EQUITY DEBT TO CAPITAL* INVESTMENT PORTFOLIO WITH Aa3 AVERAGE RATING Top Tier Rating On October 6, Everest A.M. Best S&P Moody’s celebrated 25 years as a publicly
Slide 8: Low Debt Leverage Provides Significant Financial Flexibility
LOW DEBT LEVERAGE PROVIDES SIGNIFICANT FINANCIAL FLEXIBILITY PEER COMPARISON OF DEBT* + PREFERRED EQUITY AS % OF TOTAL CAPITAL AS OF 2Q20 Cincinnati Financial 9.5% Everest** 6.9% 15.1% Hanover Insurance 17.5% RenaissanceRe 18.4% Alleghany 19.3% Hartford 21.6% Chubb 23.3% Arch 23.9% Axis 26.0% Markel
Slide 9: Diversified Investment Portfolio
DIVERSIFIED INVESTMENT PORTFOLIO HIGH CREDIT QUALITY AND STRONG LIQUIDITY QUARTERLY HIGHLIGHTS ADDITIONAL DETAILS On October 7, 2020 Everest Reinsurance Holdings, Inc. issued $23.1B a registered public offering of $1.0 billion aggregate principal amount of 3.500% Senior Notes due 2050 We will se
Slide 10: Prudent Volatility Management
PRUDENT VOLATILITY MANAGEMENT MANAGING THE PROPERTY CAT PORTFOLIO TO ENSURE STABILITY FOR THE LONG TERM 1 - 1 0 0 S O U TH E A S T W I N D S TO R M – A F TE R TA X P ML A S A % O F YE A R E N D E Q U I TY 2 0 2 0 H D AT A I S AS O F J U L Y 1 , 2 0 2 0 15.0% 12.9% Driven by targeted 11.4% 11.4% 11.3
Slide 11: Favorable Accident Year Loss Development
FAVORABLE ACCIDENT YEAR LOSS DEVELOPMENT 1 0 YE A R L O S S R E S E R V I N G E XP E R I E N C E – I N I TI A L TO U L TI MA TE 90.8% 100.0% 89.2% 86.5% 81.1% 90.0% 75.9% 75.7% 75.3% 73.8% 80.0% 69.6% 67.6% 67.4% 67.4% 66.0% 65.7% 64.6% 70.0% 59.4% 59.4% 59.1% 57.8% 55.1% 51.2% 60.0% 50.0% 49.4% 40.
Slide 12: Global Reach
GLOBAL REACH PHYSICAL FOOTPRINT IN MAJOR HUBS OF BUSINESS [23 OFFICES IN 9 COUNTRIES] Ability to develop local insights and deploy on-the-ground assets Decentralized decision making Distribution channels with access to global markets including Asia, Europe and Latin America through our Singapo
Slide 13: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM OVER 260 COMBINED YEARS OF INDUSTRY EXPERIENCE Juan C. Andrade Mark Kociancic Jim Williamson President & CEO Executive Vice President, Executive Vice President, 26 years Chief Financial Officer Chief Operating Officer 28 years 15 years John P. Doucette Michael Karmilowicz
Slide 14: Efficient, Nimble and Entrepreneurial
EFFICIENT, NIMBLE AND ENTREPRENURIAL HARNESSING TOP TALENT AND TECHNOLOGY ENTREPRENEURIAL PROBLEM SOLVERS DRIVEN BY TECHNOLOGY FLAT CORPORATE STRUCTURE SCALABLE BUSINESS MODELS EVEREST RE GROUP, LTD. 14
Slide 15: The Power of Culture
THE POWER OF CULTURE CULTIVATING A RELENTLESS PURSUIT OF EXCELLENCE THOUGHTFUL COLLABORATION ASSUMPTION OF RISK EXECUTION …through open, transparent, …through intelligent, creative, …through a performance culture and effective communication. and nimble solutions where we deliver on our promise in th
Slide 16: Corporate Responsibility
CORPORATE RESPONSIBILITY SUSTAINABILITY AND SOCIAL RESPONSIBILITY ARE AT THE CENTER OF OUR WORKPLACE Innovating and solving complex global risks, We believe that a sustainable future for our company and serving as a protective back-stop at 1 must encompass the values important to our those times whe
Slide 17: Diversity, Equity and Inclusion
DIVERSITY, EQUITY AND INCLUSION At Everest, our people are our greatest resource, DE&I Council and we draw strength from our diversity. We are The council seeks to enhance the committed to advancing a culture of diversity and DE&I culture across Everest, and inclusion, where employees at all levels
Slide 18: Appendix
APPENDIX
Slide 19: Financial Highlights
FINANCIAL HIGHLIGHTS For the year ended December 31, ($in millions, except per share data) 3Q20 YTD 2019 2018 2017 2016 2015 BALANCE SHEET Cash and Investments $23,104.7 $20,748.5 $18,433.1 $18,626.5 $17,483.1 $16,676.4 Shareholders’ equity $9,591.3 $9,132.9 $7,860.8 $8,340.7 $8,033.1 $7,608.6 Book
Slide 20: Seon Place, 4th Floor 141 Front Street P.O. Box HM 845
Seon Place, 4th Floor 141 Front Street P.O. Box HM 845 Hamilton, HM 19 Bermuda