Everest Group, Ltd. · NYSE:EG
Everest — Q4 2023 Earnings Presentation
27 slides from Everest's earnings presentation, Feb 8, 2024
Slide 1: Investor Presentation Fourth Quarter 2023
Investor Presentation Fourth Quarter 2023
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 Strategic Overview
We underwrite opportunity. Everest Strategic Overview
Slide 4: How Everest Builds Shareholder Value
How Everest Builds Shareholder Value Diversified reinsurance and Net acquirer of top talent insurance P&C franchise Lead market reinsurer Delivering Leadership team with capitalizing on hard market proven track record consistent, industry-leading Disciplined long-term shareholder High-quality specia
Slide 5: 2023: Driving Sustainable, Leading Financial Returns
2023: Driving Sustainable, Leading Financial Returns Record annual results Leading financial returns • Underwriting Income • Operating ROE of 23.1% • Net Investment Income • Total Shareholder Return of 26.5%1 • Net Income • Operating Income • Cash Flow from Operations “2023 was the Leaned into gener
Slide 6: Industry Leadership Focused on Underwriting Opportunity
Industry Leadership Focused on Underwriting Opportunity Mark Kociancic Jim Williamson Mike Karmilowicz Ricardo Anzaldua Gail Van Beveren EVP, Group CFO EVP, Group COO and EVP, President and CEO EVP, General Counsel EVP, Chief Human Head of Reinsurance of Everest Insurance® Resources Officer Juan C.
Slide 7: Looking Forward: Strategic and Financial Objectives
Looking Forward: Strategic and Financial Objectives Strategic objectives Financial objectives A leading reinsurance market around the globe Targeting industry-leading financial returns, consistently Premier global P&C insurance company Strong underwriting income growth Employer of choice Generate in
Slide 8: Everest – A Leading Global Platform for Insurance and Reinsurance
Everest – A Leading Global Platform for Insurance and Reinsurance Insurance: • Double Digit Growth Trajectory Coupled With Consistent Margin Expansion Reinsurance: • The 4th Largest Global P/C Reinsurer1 With Focus on Strategic Market Opportunities and Reduced Volatility REINSURANCE AND INSURANCE GW
Slide 9: Preferred reinsurance partner in local and global markets
Preferred reinsurance partner in local and global markets Recently increased local primary insurance presence in Asia, LatAm & Europe Think globally, trade locally Local strategy in action • Offices across global reinsurance centers – with empowered, respected, and experienced local decision makers
Slide 10: 3-Year (2024 – 2026) Strategic Plan Financial Highlights
3-Year (2024 – 2026) Strategic Plan Financial Highlights Combined Ratios Key Ratios Group: 89 – 91% ~6% Cat load Underwriting Income Total Shareholder Reinsurance: 89 – 91% Return1 >17% Insurance: 90 – 92% Total Investment Mix Investment Returns Shareholde High-quality fixed income ~5 – 6% r Return*
Slide 11: Quarterly and Annual Results Summary
Quarterly and Annual Results Summary
Slide 12: Everest Group Financial Highlights
Everest Group Financial Highlights, Total Shareholder Return and Operating Income 2023 FULL YEAR HIGHLIGHTS TOTAL SHAREHOLDER RETURN Continued momentum throughout 2023, 26.5% with record annual results in operating 14.7% income and net income, driving an 5.4% operating ROE of 23.1% 2021 2022 2023 Gr
Slide 13: Everest Reinsurance Division Financial Highlights
Everest Reinsurance Division Financial Highlights 2023 FOURTH QUARTER HIGHLIGHTS YEAR TO DATE HIGHLIGHTS 1 • Gross written premiums grew 21.9% on a GROSS WRITTEN PREMIUM – USD MILLIONS constant dollar basis to $2.9 billion. $11,460 $9,018 $9,248 • Robust pricing momentum continued in the fourth quar
Slide 14: Everest Insurance Division Financial Highlights
Everest Insurance® Division Financial Highlights 2023 FOURTH QUARTER HIGHLIGHTS YEAR TO DATE HIGHLIGHTS 1 • Gross written premiums grew 11.6% on a GROSS WRITTEN PREMIUM – USD MILLIONS constant dollar basis to $1.4 billion. $5,177 $4,704 $4,032 • Attritional loss ratio2 improved 70 basis points over
Slide 15: Everest – Quarterly Financial Highlights
Everest – Quarterly Financial Highlights Equity and Capital Resources Investment Income and Cash Flow $13.2 billion in shareholders’ equity after $1.5 billion equity offering in May Enhanced interest income driven by 2023, including $723 million of stronger fixed income returns as new unrealized los
Slide 16: Transforming Everest's Risk Profile
Transforming Everest’s Risk Profile Improved risk adjusted returns and reduced exposure to natural catastrophe events Superior Risk / Return Economics After Tax Net 1:100 PML as a % of Group within our Defined Risk Appetite Equity Excluding URGL 1 1 in 100 2019 11.6% Earnings at Risk 2021 9.7% 2020
Slide 17: Everest Segment Summary
We underwrite opportunity. Everest Segment Summary
Slide 18: Growing and Profitable Reinsurance Platform
Growing and Profitable Reinsurance Platform HISTORY OF CONSISTENT GWP GROWTH1 Leading Reinsurance Platform $ in billions • Leading global P&C reinsurer with a value proposition and relationships to continue to boost our leadership $11.5 $9.1 $9.3 position around the globe and maximize our $6.3 $7.2
Slide 19: Everest Reinsurance: Financial Objectives
Everest Reinsurance: Financial Objectives Positioned to deliver results Everest Reinsurance: 2024 – 2026 Rigorous portfolio and cycle management 89 – 91% combined ratio Prudent risk profile Best-in-class expense ratio <3% 6 – 7% admin ratio cat load Diversified business mix Strengthening our competi
Slide 20: Leading Insurance Platform
Leading Insurance Platform Consistent Growth and Improving Results HISTORY OF CONSISTENT & DISCIPLINED GWP GROWTH1 $ in billions • Armed with the talent, tools and capabilities to deliver consistent growth and underwriting results $5.2 $4.7 $4.0 • Global expansion to deliver balanced and diversified
Slide 21: Everest Insurance: The Path to Delivering Exceptional Results
Everest Insurance®: The Path to Delivering Exceptional Results Delivering for investors Everest Insurance®: 2024 – 2026 throughout the journey Differentiated talent, empowered 90 - 92% underwriting combined ratio Diversification and optionality driving margin expansion and consistent results 91% Lev
Slide 22: Everest Investment Portfolio
Everest Investment Portfolio INVESTMENT PORTFOLIO GUIDING QUARTERLY AND YEAR TO DATE PRINCIPLES HIGHLIGHTS • Portfolio diversification • High degree of liquidity Dual strategy approach: • Strong credit quality Stable income and total return • Asset/liability duration matching • Optimize risk adjuste
Slide 23: Talent and Culture Working Together to Drive Results
Talent and Culture Working Together to Drive Results Committed to corporate Protecting the environment Helping our employees thrive citizenship Committed across the group to Serving market demand for insurance Everest is an employer of choice – creating positive enduring societal protection of renew
Slide 24: Positioned to Outperform and Deliver Differentiated Value
Positioned to Outperform and Deliver Differentiated Value Disciplined specialty Insurance Seasoned management team with strategy delivering margin proven ability to execute expansion Strong underwriting culture that Growing high-quality investment attracts top talent globally portfolio Lead market r
Slide 25: Appendix
We underwrite opportunity. Appendix
Slide 26: Financial Highlights
Financial Highlights Current and Historical For the year ended December 31, ($ in millions, except per share data) 4Q23 2023 2022 2021 2020 2019 BALANCE SHEET Cash and Investments $37,142 $37,142 $29,872 $29,673 $25,462 $20,749 Shareholders’ equity $13,202 $13,202 $8,441 $10,139 $ 9,726 $9,133 Book
Slide 27: Tracking Total Shareholder Return
Tracking Total Shareholder Return ($ in millions, except per share data) 2023 2022 2021 BALANCE SHEET DATA Reported Shareholders' Equity $13,202 $8,441 $10,139 Net unrealized gains / (losses) $(723) $(1,709) $239 Shareholders Equity excluding URGL $13,925 $10,149 $9,900 BOOK VALUE PER SHARE DATA Rep