Everest Group, Ltd. · NYSE:EG
Everest — Q4 2020 Earnings Presentation
19 slides from Everest's earnings presentation, Feb 9, 2021
Slide 1: Everest Re Group, Ltd. Investor Presentation Fourth Quarter 2020
EVEREST RE GROUP, LTD. I N V E S T O R P R E S E N TAT I O N Fourth 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: Everest's Drivers of Success
EVEREST’S DRIVERS OF SUCCESS Our focus on sustainably growing a balanced and diversified insurance and reinsurance portfolio and the relentless execution of our strategies to deliver underwriting profitability positions Everest to deliver shareholder value in every stage of the market cycle. DIVERSI
Slide 4: Disciplined Growth and Diversification
DISCIPLINED GROWTH AND DIVERSIFICATION PROFITABLE GROWTH THROUGH DIVERSIFICATION BY DIVISION, CLASS & GEOGRAPHY GROW TH ACROSS THE DIVISIONS: BALANCED MIX OF BUSINESS: REINSURANCE DIVISION GROSS W RITTEN PREMIUMS (MILLIONS) $10,482.4 2016 2020 10% 9% $6,033.9 69% 20% 34 57% % 70% 70% 30% 31% 2016 20
Slide 5: Everest Reinsurance Division
EVEREST REINSURANCE DIVISION A LEADING GLOBAL REINSURER QUARTERLY HIGHLIGHTS GROSS W RITTEN PREMIUM – USD MILLIONS Strong growth in an improving market, 2020 gross written $7,282 $6,225 $6,356 premiums up 15% year over year $4,247 $5,115 Continued market recognition and counterparty desire to pa
Slide 6: Everest Insurance Division
EVEREST INSURANCE® DIVISION A PREMIER GLOBAL SPECIALTY INSURANCE OPERATION QUARTERLY HIGHLIGHTS GROSS W RITTEN PREMIUM – USD MILLIONS $3,201 Gross written premium of $3.2 billion for 2020, reflecting 15% $2,778 $2,059 $2,251 year over year growth $1,787 Diligent portfolio management and underwri
Slide 7: Robust Financial Strength
ROBUST FINANCIAL STRENGTH STRONG CAPITAL BASE, LOW DEBT LEVERAGE, AND TOP TIER RATINGS Balance Sheet $9.7B 16.4% $25.5B As of 4Q 2020 GAAP EQUITY DEBT TO CAPITAL INVESTMENT PORTFOLIO WITH Aa3 AVERAGE RATING Top Tier Rating On October 6, 2020 Everest A.M. Best Moody’s S&P celebrated 25 years as a A+
Slide 8: Low Debt Leverage Provides Significant Financial Flexibility
LOW DEBT LEVERAGE PROVIDES SIGNIFICANT FINANCIAL FLEXIBILITY PEER COMPARISON OF DEBT* + PREFERRED EQUITY AS % OF TOTAL CAPITAL Cincinnati Financial 9.0% Everest** 16.4% Renaissance Re 18.3% Alleghany 19.2% Hanover Insurance 19.8% Hartford 20.9% Arch 22.6% Chubb 24.0% Markel 25.6% Axis 26.1% W. R. Be
Slide 9: Diversified Investment Portfolio
DIVERSIFIED INVESTMENT PORTFOLIO HIGH CREDIT QUALITY AND STRONG LIQUIDITY QUARTERLY HIGHLIGHTS ADDITIONAL DETAILS On October 7, 2020 Everest Reinsurance Holdings, Inc. issued $25.5B a registered public offering of $1.0 billion aggregate principal amount of 3.5% Senior Notes due 2050 We deployed
Slide 10: Prudent Volatility Management
PRUDENT VOLATILITY MANAGEMENT MANAGING THE PROPERTY CAT PORTFOLIO TO ENSURE STABILITY FOR THE LONG TERM Driven by targeted underwriting actions, Everest 1 - 1 0 0 S O U TH E A S T W I N D S TO R M – A F TE R TA X P ML A S A % O F YE A R E N D E Q U I TY has achieved a meaningful reduction in Propert
Slide 11: Global Reach
GLOBAL REACH PHYSICAL FOOTPRINT IN MAJOR HUBS OF BUSINESS [23 OFFICES IN 9 COUNTRIES] Ability to develop local insights and deploy on-the-ground assets Decentralized decision making Distribution channels with access to global markets including Asia, Europe and Latin America through our Singapo
Slide 12: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM OVER 260 COMBINED YEARS OF INDUSTRY EXPERIENCE Juan C. Andrade Mark Kociancic Jim Williamson President & CEO Executive Vice President, Executive Vice President, 26 years Chief Financial Officer Chief Operating Officer 28 years 15 years John P. Doucette Michael Karmilowicz
Slide 13: Efficient, Nimble and Entrepreneurial
EFFICIENT, NIMBLE AND ENTREPRENURIAL HARNESSING TOP TALENT AND TECHNOLOGY ENTREPRENEURIAL PROBLEM SOLVERS DRIVEN BY TECHNOLOGY FLAT CORPORATE STRUCTURE SCALABLE BUSINESS MODELS EVEREST RE GROUP, LTD. 13
Slide 14: The Power of Talent and Culture
THE POWER OF TALENT AND CULTURE EVEREST WAS RECOGNIZED IN BUSINESS INSURANCE’S 2020 “BEST PLACES TO WORK” THOUGHTFUL COLLABORATION ASSUMPTION OF RISK EXECUTION …through open, transparent, …through intelligent, creative, …through a performance culture and effective communication. and nimble solutions
Slide 15: Corporate Responsibility
CORPORATE RESPONSIBILITY SOCIAL RESPONSIBILITY IS A KEY ELEMENT OF CORPORATE SUSTAINABILITY We believe that a sustainable future for our company Promoting our must encompass the values important to our customers, employees and the communities in which integrity through all aspects of the company. 1
Slide 16: Diversity, Equity and Inclusion
DIVERSITY, EQUITY AND INCLUSION At Everest, our people are our greatest resource, DE&I Council and we draw strength from our diversity. We are The council seeks to enhance the committed to advancing a culture of diversity and DE&I culture across Everest, and inclusion, where employees at all levels
Slide 17: Appendix
APPENDIX
Slide 18: Financial Highlights
FINANCIAL HIGHLIGHTS For the year ended December 31, ($in millions, except per share data) 2020 2019 2018 2017 2016 BALANCE SHEET Cash and Investments $25,461.6 $20,748.5 $18,433.1 $18,626.5 $17,483.1 Shareholders’ equity $9,726.2 $9,132.9 $7,860.8 $8,340.7 $8,033.1 Book value per common share $243.
Slide 19: Seon Place, 4th Floor, Hamilton, Bermuda
Seon Place, 4th Floor 141 Front Street P.O. Box HM 845 Hamilton, HM 19 Bermuda