Everest Group, Ltd. · NYSE:EG
Everest — Everest Re Group — Q2 2020 Earnings Presentation
23 slides from Everest's earnings presentation, 2020
Slide 1: Everest Re Group, Ltd. Investor Presentation Second Quarter 2020
EVEREST RE GROUP, LTD. I N V E S T O R P R E S E N TAT I O N Second 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: CEO quote on sustainable and profitable growth
“Our focus is on sustainable and profitable growth over the long term, underpinned by the relentless execution of our strategies, to maximize shareholder returns. Growth in book value per share over time is our true north.” Juan C. Andrade President & CEO, Everest Re Group, Ltd. EVEREST RE GROUP, LT
Slide 4: Long-Term Value for Shareholders
LONG-TERM VALUE FOR SHAREHOLDERS $268.95 11.6% COMPOUND ANNUAL RETURN SINCE 1995 2019 $202.51 2015 $126.52 2010 $66.83 2005 $35.39 $19.39 2000 1995 EVEREST RE GROUP, LTD. 4
Slide 5: Everest's Elements of Success
EVEREST’S ELEMENTS OF SUCCESS Ultimately, the combination of sustainable growth in earnings plus efficient capital management, our strong balance sheet, low leverage and strong financial ratings will position Everest to succeed in every stage of the market cycle. Experienced Powerful Global Team Cul
Slide 6: The Power of Culture
THE POWER OF CULTURE CULTIVATING AN UNWAVERING PURSUIT OF EXCELLENCE THOUGHTFUL COLLABORATION ASSUMPTION OF RISK EXECUTION …through open, transparent, and …through intelligent, creative, …through a performance culture effective communication. and nimble solutions in the where we deliver on our promi
Slide 7: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Juan C. Andrade John P. Doucette Craig Howie Michael Karmilowicz President & CEO Executive Vice President and Executive Vice President, Executive Vice President and President & CEO of the Chief Financial Officer President & CEO of the Reinsurance Division Insurance Divisi
Slide 8: Global Reach
GLOBAL REACH CLIENT-FACING TEAMS WITH CENTRALIZED GLOBAL SHARED SERVICES Atlanta, GA New York, NY Bermuda Boston, MA Orange, CA Belgium Chicago, IL Philadelphia, PA Brazil Houston, TX San Francisco, CA Canada Indianapolis, IN Stamford, CT Ireland Liberty Corner, NJ Tampa, FL UK Los Angeles, CA Walnu
Slide 9: Robust Financial Strength
ROBUST FINANCIAL STRENGTH STRONG CAPITAL BASE, LOW DEBT LEVERAGE, AND TOP TIER RATINGS Balance Sheet $9.3B 6.3% $21.6B As of 2Q2020 GAAP Equity Debt to Capital Investment Portfolio with A1 Average Rating Top Tier Rating A.M. Best S&P Moody’s During Q2, all Everest A+ A+ A1 ratings were affirmed with
Slide 10: Financial Highlights
FINANCIAL HIGHLIGHTS For the year ended December 31, ($in millions, except per share data) 2Q20 YTD 2019 2018 2017 2016 2015 BALANCE SHEET Cash and Investments $21,601.7 $20,748.5 $18,433.1 $18,626.5 $17,483.1 $16,676.4 Shareholders’ equity $9,286.3 $9,132.9 $7,860.8 $8,340.7 $8,033.1 $7,608.6 Book
Slide 11: Invested Asset Portfolio
INVESTED ASSET PORTFOLIO HIGH CREDIT QUALITY AND STRONG LIQUIDITY Invested Asset Portfolio Composition as of June 30, 2020 Corporate 30.6% Non U.S. 20.3% Mortgage/ Total invested assets of 18.9% Asset Backed $21.6 billion Other 8.4% 79% of investments are in fixed income securities, with Cash &
Slide 12: Favorable Accident Year Loss Development
FAVORABLE ACCIDENT YEAR LOSS DEVELOPMENT 10 Year Loss Reserving Experience – Initial to Ultimate 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% 49.4% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 2010
Slide 13: Low Debt Leverage Yields Significant Financial Flexibility
LOW DEBT LEVERAGE YIELDS SIGNIFICANT FINANCIAL FLEXIBILITY Peer Comparison of Debt* + Preferred Equity as % of Total Capital Everest 6.3% Cincinnati 8.2% Financial Alleghany 16.6% Hanover 18.3% Insurance Arch 20.4% Chubb 23.1% Markel 24.2% Hartford 24.2% RenaissanceRe 25.9% W. R. Berkley 30.0% Axis
Slide 14: Intelligent Growth and Diversification
INTELLIGENT GROWTH AND DIVERSIFICATION SUSTAINING PROFITABILITY THROUGH DIVERSIFICATION BY DIVISION, CLASS & GEOGRAPHY Growth Across Divisions: Gross Written Premium (Millions) 2015 vs 2019 Strategic thinking, relentless $9,133.4 drive, and focused execution in $5,891.7 reshaping our insurance and 7
Slide 15: Prudent Volatility Management
PRUDENT VOLATILITY MANAGEMENT MANAGING THE PROPERTY CAT PORTFOLIO TO ENSURE STABILITY FOR THE LONG TERM 1-100 Southeast Windstorm – After Tax PML as a % of YE Equity 15.0% Driven by 12.9% targeted management 11.4% 11.4% 11.3% actions, Everest 9.6% has achieved a 10.0% meaningful reduction in 7.0% Pr
Slide 16: Industry Leading Expense Ratio
INDUSTRY LEADING EXPENSE RATIO REALIZING UNDERWRITING AND OPERATIONAL EXCELLENCE, WHILE MAINTAINING EXPENSE EFFICIENCY We are focused on Risk Risk Transfer dynamically allocating Analysis Products capital to the businesses presenting the best economic opportunities and investing in premier Market ta
Slide 17: Everest Reinsurance Strategy
EVEREST REINSURANCE STRATEGY SIX ELEMENTS TO SUPPORT DISCIPLINED GROWTH REINSURANCE MORTGAGE/ GLOBAL GROWTH STRATEGIC CASUALTY CREDIT CLIENTS INITIATIVES RELATIONSHIPS PROPERTY Focused and Uncorrelated Significant and Execute with a Gain access to Strong risk- surgical growth income stre
Slide 18: Everest Reinsurance Division
EVEREST REINSURANCE DIVISION A LEADING GLOBAL REINSURER 2019 Gross Written Premium Geography Reinsurance Operations 2015 2016 2017 2018 2019 Gross Written Premium $4,359.4 $4,246.8 $5,114.7 $6,224.6 $6,355.9 3% 3% USA 5% 4% Europe/UK Combined Ratio 78.5% 77.6% 103.1% 113.0% 95.4% 11% Latin America A
Slide 19: Everest Insurance Strategy
EVEREST INSURANCE® STRATEGY FIVE STRATEGIES TO DELIVER PROFITABILITY, SCALE AND GROWTH Underwriting Excellence Focus on Sustained Underwriting “One Everest” Profitability Talent Development Digitization & Innovation Drive to Scale Strengthening the Core EVEREST RE GROUP, LTD. 19
Slide 20: Everest Insurance Division
EVEREST INSURANCE® DIVISION A PREMIER GLOBAL SPECIALTY INSURANCE OPERATION 2019 Gross Written Premium Business Mix Insurance Operations 2015 2016 2017 2018 2019 Gross Written Premium $1,532.3 $1,787.0 $2,059.2 $2,250.6 $2,777.5 5% 12% Specialty Casualty Combined Ratio 106.3% 116.5% 104.8% 95.3% 95.8
Slide 21: Corporate Responsibility
CORPORATE RESPONSIBILITY SUSTAINABILITY AND SOCIAL RESPONSIBILITY ARE AT THE CENTER OF OUR WORKPLACE Innovating and solving We believe that a sustainable future for our company must complex global risks, and serving as a encompass the values important to our customers, protective back-stop at employ
Slide 22: Diversity, Equity and Inclusion
DIVERSITY, EQUITY AND INCLUSION CORE 2020 INITIATIVES At Everest, our people are our greatest resource, and Formation of DE&I Council we draw strength from our diversity. We are The council is seeks to enhance committed to advancing a culture of diversity and the DE&I culture across Everest, inclusi
Slide 23: Seon Place, 4th Floor, 141 Front Street
Seon Place, 4th Floor 141 Front Street P.O. Box HM 845 Hamilton, HM 19 Bermuda