Everest Group, Ltd. · NYSE:EG
Everest — Q1 2024 Earnings Presentation
26 slides from Everest's earnings presentation, Apr 30, 2024
Slide 1: Investor Presentation First Quarter 2024
Investor Presentation First Quarter 2024
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: Industry Leadership Focused on Underwriting Opportunity
Industry Leadership Focused on Underwriting Opportunity Juan C. Andrade Mark Kociancic Jim Williamson Mike Karmilowicz President and EVP, Group Chief EVP, Group Chief EVP, Chairman, Chief Executive Financial Officer Operating Officer Everest Global Officer Insurance Ricardo Anzaldua Gail Van Beveren
Slide 6: 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 7: 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 8: 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 9: 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 10: Tracking Total Shareholder Return
Tracking Total Shareholder Return ($ in millions, except per share data) 1Q24 2023 2022 2021 BALANCE SHEET DATA Reported Shareholders' Equity $13,628 $13,202 $8,441 $10,139 Net unrealized gains / (losses) $(876) $(723) $(1,709) $239 Shareholders Equity excluding URGL $14,504 $13,925 $10,149 $9,900 B
Slide 11: Quarterly and Annual Results Summary
Quarterly and Annual Results Summary
Slide 12: Everest Group Quarterly Highlights
Everest Group Quarterly Highlights, Total Shareholder Return and Operating Income 2024 FIRST QUARTER HIGHLIGHTS TOTAL SHAREHOLDER RETURN 26.5%1 Significant increases in profitability 18.1% across all key metrics, including a TSR of over 18% and an operating ROE of 20% 5.4% 2022 2023 1Q24 Annualized
Slide 13: Everest Reinsurance Division
Everest Reinsurance Division Quarterly Financial Highlights 2024 FIRST QUARTER HIGHLIGHTS REINSURANCE HIGHLIGHTS 1 • Gross written premiums grew 20.4% on a GROSS WRITTEN PREMIUM – USD MILLIONS constant dollar basis to $3.2 billion. $3,175 $2,620 $2,172 • Well positioned in 2024 following outstanding
Slide 14: Everest Insurance Division
Everest Insurance® Division Quarterly Financial Highlights 2024 FIRST QUARTER HIGHLIGHTS INSURANCE HIGHLIGHTS 1 • Gross written premiums grew 9.8% on a GROSS WRITTEN PREMIUM – USD MILLIONS constant dollar basis to $1.2 billion, driven by a $1,236 diversified mix of property and specialty lines. $1,0
Slide 15: Everest – Quarterly Financial Highlights
Everest – Quarterly Financial Highlights Equity and Capital Resources Investment Income and Cash Flow $13.6 billion in shareholders’ equity, Enhanced interest income driven by including $876 million of unrealized stronger fixed income returns as new losses on the available for sale fixed money yield
Slide 16: Transforming Everest’s Risk Profile
Transforming Everest’s Risk Profile Improved risk adjusted returns & targeted growth in attractive property & short-tail lines 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
Slide 17: Everest Segment Summary
We underwrite opportunity. Everest Segment Summary
Slide 18: Preferred Lead Market Reinsurance Franchise
Preferred Lead Market Reinsurance Franchise 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: Disciplined Long-Term Specialty Insurance Strategy
Disciplined Long-Term Specialty Insurance Strategy 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 $4.0 • Global expansion to deliver
Slide 21: Everest Insurance: The Path to Delivering Exceptional Results
Everest Insurance®: The Path to Delivering Exceptional Results Delivering for investors Everest Insurance®: 2024 – 2026 throughout the journey Differentiated talent, empowered 90 - 92% underwriting combined ratio Diversification and optionality driving margin expansion and consistent results 91% Lev
Slide 22: Everest Investment Portfolio
Everest Investment Portfolio INVESTMENT PORTFOLIO GUIDING QUARTERLY AND YEAR TO DATE PRINCIPLES HIGHLIGHTS • Portfolio diversification • High degree of liquidity Dual strategy approach: • Strong credit quality Stable income and total return • Asset/liability duration matching • Optimize risk adjuste
Slide 23: Talent and Culture Working Together to Drive Results
Talent and Culture Working Together to Drive Results Committed to corporate Protecting the environment Helping our employees thrive citizenship Committed across the group to Serving market demand for insurance Everest is an employer of choice – creating positive enduring societal protection of renew
Slide 24: Positioned to Outperform and Deliver Differentiated Value
Positioned to Outperform and Deliver Differentiated Value Disciplined specialty Insurance Seasoned management team with strategy delivering margin proven ability to execute expansion Strong underwriting culture that Growing high-quality investment attracts top talent globally portfolio Lead market r
Slide 25: Appendix
We underwrite opportunity. Appendix
Slide 26: Financial Highlights: Current and Historical
Financial Highlights Current and Historical For the year ended December 31, ($ in millions, except per share data) 1Q24 2023 2022 2021 2020 2019 BALANCE SHEET Cash and Investments $38,148 $37,142 $29,872 $29,673 $25,462 $20,749 Shareholders’ equity $13,628 $13,202 $8,441 $10,139 $ 9,726 $9,133 Book