Everest Group, Ltd. · NYSE:EG
Everest — Q1 2023 Earnings Presentation
24 slides from Everest's earnings presentation, May 2, 2023
Slide 1: Investor Presentation First Quarter 2023
Investor Presentation First 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: Building on Everest's Strengths to Advance our Strategy
Building on Everest’s Strengths to Advance our Strategy BUILDING ON MARKET LEADERSHIP SCALABLE OPERATIONAL GLOBAL EXCELLENCE FRANCHISES DISCIPLINED FINANCIAL UNDERWRITING STRENGTH SEASONED LEADERSHIP TEAM Private & Confidential Everest Re Group, Ltd. 4
Slide 5: Everest Leadership: Extensive Global Industry Experience
Everest Leadership: Extensive Global Industry Experience Juan C. Andrade Mark Kociancic Jim Williamson Mike Karmilowicz President and EVP, Group Chief EVP, Group Chief Operating EVP, President & CEO of Chief Executive Officer Financial Officer Officer Everest Insurance® and Head of Everest Reinsuran
Slide 6: Everest - Strategic Building Blocks
Everest - Strategic Building Blocks BUILDING OUR FRANCHISES ▪ Grow the P&C Insurance Platform with Expanded Margins ▪ Capitalize on and Grow Leading P&C Reinsurance Franchise CONTINUOUS PURSUIT OF WINNING BEHAVIORS CONTINUOUS PURSUIT OPERATIONAL OF EXCELLENCE WINNING BEHAVIORS OPERATIONAL EXCELLENCE
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: Local Leaders Drive Superior Execution
Local Leaders Drive Superior Execution Recently increased local primary insurance presence in Asia, LatAm & Europe Think globally, trade locally Local strategy in action • Offices in all key global reinsurance centers –local decision makers empowered to transact • Breadth of diverse global risk solu
Slide 9: 3-Year Strategic Plan Financial Target Assumptions
3-Year Strategic Plan Financial Target Assumptions Underwriting GWP Growth Rate Key Ratios Income 2023 • Group: 10 – 15% CAGR • 91% - 93% CR (Group and Divisions) • Reinsurance: 8 – 12% CAGR • 6 – 7% Cat load (included in CR) Total • Insurance: 18 – 22% CAGR • ~6% Group general expense ratio Shareho
Slide 10: Quarterly and Annual Results Summary
Quarterly and Annual Results Summary
Slide 11: Everest Group Quarterly Highlights, Total Shareholder Return and Operating Income
Everest Group Quarterly Highlights, Total Shareholder Return and Operating Income 2023 FIRST QUARTER HIGHLIGHTS TOTAL SHAREHOLDER RETURN Excellent start to 2023, with strong 14.7% 14.1% growth, increased underwriting profits, 5.4% 17.2% operating ROE and total shareholder return of 14.1% 2021 2022 1
Slide 12: Everest Insurance Division Quarterly Highlights
Everest Insurance® Division Quarterly Highlights 2023 FIRST QUARTER HIGHLIGHTS INSURANCE HIGHLIGHTS • Gross written premiums of $1.1 billion, a GROSS WRITTEN PREMIUM – USD MILLIONS 11.5% increase year over year in constant $872 $1,001 $1,106 dollars. Growth was broad geographically, driven by a dive
Slide 13: Everest Reinsurance Division Quarterly Highlights
Everest Reinsurance Division Quarterly Highlights 2023 FIRST QUARTER HIGHLIGHTS REINSURANCE HIGHLIGHTS • Gross written premiums of $2.6 billion for GROSS WRITTEN PREMIUM – USD MILLIONS Q1 – we continue to capitalize on our $2,637 $2,059 $2,186 leadership position in the market, strong pricing in pro
Slide 14: Everest – Quarterly Financial Highlights
Everest – Quarterly Financial Highlights Equity and Capital Resources Investment Income and Cash Flow $9.0 billion in shareholders’ equity Enhanced interest income from including $1.5 billion of unrealized higher rate resets on floating rate losses on the fixed maturity portfolio securities and high
Slide 15: 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 16: Everest Segment Summary
We underwrite opportunity. Everest Segment Summary
Slide 17: Leading Insurance Platform
Leading Insurance Platform HISTORY OF CONSISTENT & INTENTIONAL GWP GROWTH Consistent Growth and Improving Results $ in billions • Consistent Growth and Underwriting Results $4.6 $4.0 • Optimizing risk-adjusted returns through effective $3.2 $2.8 portfolio and cycle management $2.3 • $4.6 billion GWP
Slide 18: Growing and Profitable Reinsurance Platform
Growing and Profitable Reinsurance Platform HISTORY OF CONSISTENT GWP GROWTH Leading Reinsurance Platform $ in billions $9.3 • Leading global P&C reinsurer with a value proposition $9.1 and relationships to continue to boost our leadership $7.3 position around the globe and maximize our $6.2 $6.4 po
Slide 19: Everest Investment Portfolio
Everest Investment Portfolio INVESTMENT PORTFOLIO GUIDING QUARTERLY AND YEAR TO DATE PRINCIPLES HIGHLIGHTS • Portfolio diversification • High degree of liquidity Dual strategy approach: • Strong credit quality Stable income and total return • Asset/liability duration matching • Optimize risk adjuste
Slide 20: Commitment to ESG is a Core Pillar of Corporate Strategy
Commitment to ESG is a Core Pillar of Corporate Strategy Promoting Environmental Awareness, Diversity, and Social Responsibility in our Communities Environment & Responsible Investing Diversity, Equity, and Inclusion (“DEI”) • Expanded the internal bias awareness and reduction program for all Everes
Slide 21: Investing in Everest
Investing in Everest Market Leading Hybrid P&C Franchise Generational Reinsurance Market Opportunity Winning Culture Attracts Talent Global Flight to Quality Strategic Investment Opportunity Focus on Performance Everest Re Group, Ltd. 21
Slide 22: Everest
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Slide 23: Financial Highlights: Current and Historical
Financial Highlights Current and Historical For the year ended December 31, ($ in millions, except per share data) 1Q23 2022 2021 2020 2019 2018 BALANCE SHEET Cash and Investments $31,435 $29,872 $29,673 $25,462 $20,749 $18,433 Shareholders’ equity $9,014 $8,441 $10,139 $ 9,726 $9,133 $7,861 Book va
Slide 24: Tracking Total Shareholder Return
Tracking Total Shareholder Return ($ in millions, except per share data) 1Q23 2022 2021 2020 BALANCE SHEET DATA Reported Shareholders' Equity $9,014 $8,441 $10,139 $9,726 Net unrealized gains / (losses) $(1,459) $(1,709) $239 $724 Shareholders Equity excluding URGL $10,473 $10,149 $9,900 $9,002 BOOK