Everest Group, Ltd. · NYSE:EG
Everest — Everest Re Group — Q1 2020 Earnings Presentation
21 slides from Everest's earnings presentation, May 2020
Slide 1: Everest Re Group, Ltd. Investor Presentation
EVEREST RE GROUP, LTD. I N V E S T O R P R E S E N TAT I O N May 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: 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. Robust Financial Experienced Powerfu
Slide 5: 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. 5
Slide 6: Robust Financial Strength
ROBUST FINANCIAL STRENGTH STRONG CAPITAL BASE, LOW DEBT LEVERAGE, AND TOP TIER RATINGS Balance Sheet $8.6B 6.9% $20.3B As of 1Q2020 GAAP Equity Debt to Capital Investment Portfolio with Aa3 Average Rating Top Tier Rating A.M. Best S&P Moody’s Everest is Under-Leveraged A+ A+ A1 and Over-Capitalized
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS For the year ended December 31, ($in millions, except per share data) 1Q 2020 2019 2018 2017 2016 2015 BALANCE SHEET Cash and Investments $20,336.6 $20,748.5 $18,433.1 $18,626.5 $17,483.1 $16,676.4 Shareholders’ equity $8,580.9 $9,132.9 $7,860.8 $8,340.7 $8,033.1 $7,608.6 Book v
Slide 8: Invested Asset Portfolio
INVESTED ASSET PORTFOLIO HIGH CREDIT QUALITY AND STRONG LIQUIDITY Invested Asset Portfolio Composition as of March 31, 2020 Corporate 31.2% Non U.S. 21.0% ▪ Total invested assets of $20.3 billion Mortgage/ Asset Backed 19.5% ▪ 81% of investments are in fixed income securities, with an Other 8.9% ave
Slide 9: Favorable Accident Year Loss Development
FAVORABLE ACCIDENT YEAR LOSS DEVELOPMENT 10 Year Loss Reserving Experience – Initial to Ultimate 90.8% 89.2% 100.0% 86.5% 81.1% 90.0% 75.9% 75.7% 75.3% 73.8% 69.6% 80.0% 67.6% 67.4% 67.4% 66.0% 65.7% 64.6% 59.4% 59.4% 59.1% 70.0% 57.8% 55.1% 51.2% 49.4% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 2010
Slide 10: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Juan C. Andrade John P. Doucette Craig Howie Dane Lopes President & CEO Executive Vice President Executive Vice President, Group Head of Marketing and President & CEO of the Chief Financial Officer and Communications, Chief Reinsurance Division Commercial Officer of the I
Slide 11: 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 12: 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 13: 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 14: Prudent Volatility Management
PRUDENT VOLATILITY MANAGEMENT MANAGING THE PROPERTY CAT PORTFOLIO TO ENSURE STABILITY FOR THE LONG TERM After Tax Impact of 1-100 Peak Probable Maximum Loss % of Equity 15.0% 11.4% 11.5% 11.4% 11.3% Driven by targeted management actions, 9.6% 10.0% Everest has achieved a meaningful reduction in Prop
Slide 15: 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 t
Slide 16: 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 17: 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 18: Everest Insurance Strategy: One Everest
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. 18
Slide 19: 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 20: Corporate Responsibility
CORPORATE RESPONSIBILITY DEDICATION TO SUSTAINABILITY AND SOCIAL RESPONSIBILITY We believe that a sustainable future for our company must encompass the values important to our customers, employees Our Goals for 2020 and the communities in which we operate. These values define ✓ Continue sustainabili
Slide 21: Everest Re Group address
Seon Place, 4th Floor 141 Front Street P.O. Box HM 845 Hamilton, HM 19 Bermuda