Everest Group, Ltd. · NYSE:EG
Everest — Investor Day (November 2023)
70 slides from Everest's investor day presentation, Nov 14, 2023
Slide 1: 2023 Investor Day
2023 Investor Day November 14, 2023
Slide 2: Cautionary note on forward-looking statements
Everest Group, Ltd. 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
Slide 3: Today's agenda
Everest Group, Ltd. Today’s agenda Opening Matt Rohrmann Senior Vice President, Head of Investor Relations Introduction and strategic overview Juan C. Andrade President and Chief Executive Officer Everest Reinsurance Jim Williamson Executive Vice President, Group Chief Operating Officer and Head of
Slide 4: Introduction and strategic overview
Introduction and strategic overview Juan C. Andrade – President and Chief Executive Officer
Slide 5: How Everest builds shareholder value
Everest Group, Ltd. 5 How Everest builds shareholder value Delivering consistent, industry-leading shareholder returns Diversified reinsurance and insurance P&C franchise Leadership team with proven track record Strong underwriting culture Net acquirer of top talent Disciplined long-term specialty I
Slide 6: Relentless focus on execution driving sustainable, leading financial returns
Everest Group, Ltd. 6 Relentless focus on execution driving sustainable, leading financial returns Culture of accountability Underwriting discipline Claims excellence Operational efficiency Analytic and reporting tools drive effective capital deployment Greater visibility through strategic planning
Slide 7: Industry leadership focused on underwriting opportunity
Everest Group, Ltd. 7 Industry leadership focused on underwriting opportunity Chris Downey CUO, Reinsurance Jill Beggs Head, NAM Reinsurance Artur Klinger Head, International Reinsurance Anthony Izzo Global Fac and Distribution Mike Mulray EVP, President NAM Insurance Adam Clifford SVP, Internationa
Slide 8: Diversified model creating industry-leading returns across cycles
Everest Group, Ltd. 8 Diversified model creating industry-leading returns across cycles $6.4 $7.3 $9.1 $9.3 $2.8 $3.2 $4.0 $4.6$9.1 $10.5 $13.1 $14.0 2019 2020 2021 2022 Reinsurance Insurance Continued profitable growth Continued margin expansion $ in billions 88.4% 87.5% 87.6% 87.4% 2019 2020 2021
Slide 9: Reinsurance: Capitalizing on hard market opportunity
Everest Group, Ltd. Reinsurance: Capitalizing on hard market opportunity and solidifying competitive advantages Driving sustainable margin expansionThe preferred lead market platform organized to capture opportunity 9 50 YEAR TRACK RECORD FOCUS ON VOLATILITY MANAGEMENT FINANCIAL STRENGTH EXCELLENT B
Slide 10: Insurance: Building the next global leader
Everest Group, Ltd. Insurance: Building the next global leader 10 Disciplined and methodical approach to margin expansion Expanding the insurance franchise for mid-to- large accounts 50 YEAR TRACK RECORD FOCUS ON VOLATILITY MANAGEMENT FINANCIAL STRENGTH EXCELLENT BUSINESS PROFILE AND MARKET OPPORTUN
Slide 11: Driving operational excellence across our value chain
Everest Group, Ltd. 11 Driving operational excellence across our value chain Leveraging underwriting expertise Top-tier operators – well known in their markets Strengthening distribution through trusted relationships and client service Platforms designed for global scale and agility without legacy d
Slide 12: Talent and culture working together to drive results
Everest Group, Ltd. 12 Talent and culture working together to drive results Net acquirer of talent Entrepreneurial and purpose-driven culture Committed to corporate citizenship Everest is an employer of choice – attracting the best talent Investment in people across the business Recognized as best-i
Slide 13: Everest's commitment to Environmental, Social, and Governance best practices
Everest Group, Ltd. Everest’s commitment to Environmental, Social, and Governance best practices 13 Ricardo Anzaldua Executive Vice President, Group General Counsel
Slide 14: Looking forward: Strategic and financial objectives
Everest Group, Ltd. Looking forward: Strategic and financial objectives 141 Total Shareholder Return is annual growth in Book Value Per Share excluding Unrealized Gains and Losses on Fixed Maturity Investments, plus Dividends Per Share Targeting industry-leading financial returns, consistently Stron
Slide 15: Reinsurance: Leading in a generational hard market
Everest Reinsurance: Leading in a generational hard market Jim Williamson – Executive Vice President, Group Chief Operating Officer and Head of the Reinsurance Division
Slide 16: A leading global P&C reinsurance partner
Everest Group, Ltd. A leading global P&C reinsurance partner 16 Building upon our position as the preferred trading partner for brokers and cedents Differentiated advantages Nimble capital deployment and broad diversification Empowered local teams: exceptional, entrepreneurial underwriting talent wi
Slide 17: Reinsurance leadership team
Everest Group, Ltd. 17 Reinsurance leadership team Jim Williamson EVP, Group COO and Head of Reinsurance Anthony Izzo Head, Global Fac and Distribution Chris Downey CUO, Reinsurance Artur Klinger Head, International Reinsurance Jill Beggs Head, NAM Reinsurance Brent Hoffman Head, Reinsurance Claims
Slide 18: Delivering on current hard market conditions in property catastrophe
Everest Group, Ltd. 18 Delivering on current hard market conditions in property catastrophe 1 Source: Aon Generational hard market Years of elevated cat activity have led to a material reset in pricing, terms and conditions Supply/demand imbalance persists; no new competitors / limited ILS investmen
Slide 19: Nimble approach to market execution
Everest Group, Ltd. 19 Nimble approach to market execution Capitalizing on most attractive opportunities Everest Reinsurance market view Global Property Cat Structural supply/demand imbalance Primary companies required to retain “working layer” cat Attractive pricing; hard market expected to persist
Slide 20: Underwriting investments for sustained outperformance
Everest Group, Ltd. 20 Underwriting investments for sustained outperformance Geographic expansion Global capabilities with ceding clients in 100+ countries Expanding in markets that are: – Large, high growth, stable – Provide attractive financial returns – Under-penetrated by Everest Runway for prof
Slide 21: Analytics investments
Everest Group, Ltd. Analytics investments Industry-leading proprietary models and vendor models Examples include cats, weather, climate, cyber, credit Support our world-class underwriters globally Capitalizing on data capabilities Global data lake Underwriting, claims, third-party data Automating pr
Slide 22: Transformation of Everest's cat risk profile
Everest Group, Ltd. 22 Transformation of Everest’s cat risk profile Reset of risk trading range under current executive team Clear underwriting appetite Rigorous, disciplined governance structure Executing with a prudent risk profile Hard market environment, particularly in peak zones, driving decis
Slide 23: Managing the cycle and operating within our risk profile in practice
Everest Group, Ltd. Managing the cycle and operating within our risk profile in practice Jill Beggs Senior Vice President and Head of North America Reinsurance 23
Slide 24: Approach to climate risk management
Everest Group, Ltd. Approach to climate risk management Science Academic research Meteorological agencies Live-tracking process Modeling Internal models produced through climate focused PhD’s on staff Experience 50-years of cedent data Third party industry loss estimates Mt. Logan Re Partner with ca
Slide 25: Everest Reinsurance: Financial objectives
Everest Group, Ltd. 25 Everest Reinsurance: Financial objectives Everest Reinsurance: 2024 – 2026 91% to 93% 89% to 91% Prior Target Casualty Cycle Mgmt. Property Rate Optimized Hedging Ceding Commissions Volatility Mgmt. New Target 89 – 91% combined ratio <3% admin ratio 6 – 7% cat load Positioned
Slide 26: Intermission
everest’ Intermission
Slide 27: Insurance: Delivering momentum and margin
Everest Insurance®: Delivering momentum and margin Mike Karmilowicz - Executive Vice President, President and CEO of Everest Insurance®
Slide 28: Our vision for a leading P&C franchise
Everest Group, Ltd. 28 Our vision for a leading P&C franchise Disciplined underwriting culture led by top-tier talent Focused on upper-middle market and large accounts in attractive markets Balanced and diversified business mix Client / service-centric model ~6 pt. attritional CR improved from YE201
Slide 29: Proven leadership team with track record of execution
Everest Group, Ltd. 29 Proven leadership team with track record of execution Adam Clifford SVP, International Insurance Mark Maritzen SVP, Global Chief Underwriting Officer Jason Keen SVP, International Insurance Mike Karmilowicz EVP, President and CEO of Everest Insurance® Mike Mulray EVP, Presiden
Slide 30: Diversified global operating model
Everest Group, Ltd. Diversified global operating model Delivering our value proposition to target clients Local underwriting expertise with well-established relationships Improved speed-to-market with best-in-class execution Go-to-market strategy tailored to distribution partners Solutions-oriented
Slide 31: Unlocking value through addressing market needs
Everest Group, Ltd. 31 Unlocking value through addressing market needs Methodical build-out focused on market gap North America Localized underwriting Speed to market Enhanced cross-selling Value-added suite of products driven by client needs creating profitable growth International Clear market nee
Slide 32: Disciplined underwriting culture driving profitable growth
Everest Group, Ltd. 21% 10% 19% 23% 28% 34% 15% 16% 5% 7% 12% 10% 2019 3Q'23-YTD Axis Title Workers Compensation Property/Short Tail Specialty Casualty Professional Liability Other Specialty A&H 32 Disciplined underwriting culture driving profitable growth Leaning into the property market Growing sp
Slide 33: Expanding relationships with target regional partners
Everest Group, Ltd. Expanding relationships with target regional partners Tailored engagement strategy by distribution relationship Proprietary models to optimize submission intake and evaluation Direct connectivity via APIs into systems across the value chain Holistic CUO governance model Consisten
Slide 34: Everest Insurance: The path to delivering exceptional results
Everest Group, Ltd. 34 Everest Insurance®: The path to delivering exceptional results Delivering for investors throughout the journey Differentiated talent, empowered underwriting Diversification and optionality driving margin expansion and consistent results Leverage existing global platforms and s
Slide 35: North America Insurance
North America Insurance Mike Mulray – Executive Vice President, North America Insurance
Slide 36: North America: Overview and evolution
Everest Group, Ltd. 36 North America: Overview and evolution An organic evolution Underwriting platform built organically Underwriting discipline and portfolio management delivering improved profitability Well-defined distribution channels and underwriting appetite Continued investments in talent an
Slide 37: North America market opportunities
Everest Group, Ltd. North America market opportunities Retail Commercial Wholesale Specialty A p p ro a ch Regionalized go-to-market approach Deepening relationships with key partners Increasing account product density Clearly defined underwriting appetite Increasing throughput and speed of transact
Slide 38: Moving closer to the end customer
Everest Group, Ltd. Customer 38 Moving closer to the end customer Local engagement Deeper engagement with customers through whole account approach Multi-line service offerings improve margins and retention rates Vertical specialization Truly specialized offerings and differentiated expertise valued
Slide 39: Everest Insurance current market view
Everest Group, Ltd. Property Agile adjustment to strategically allocate capacity Improving risk-adjusted rate increases, and favorable terms and conditions Excess & Surplus (E&S) Lines Strategically grew Excess Casualty in favorable years Top 20 share, 25-yr track record Underwriting expertise, such
Slide 40: Building on our strengths
Everest Group, Ltd. 40 Building on our strengths Expertise closer to the client Institutionalizing the “One Everest” approach to drive local engagement Strategic placement of talent and services Hub and spoke infrastructure Service-oriented technology and API-enabled connectivity Improving peer-to-p
Slide 41: International Insurance
International Insurance Jason Keen – Senior Vice President, International Insurance Adam Clifford – Senior Vice President, International Insurance
Slide 42: International: The next step in our journey
Everest Group, Ltd. 42 International: The next step in our journey International opportunity Methodical and disciplined expansion into target geographies, focusing on profitability Diversified product offering presents a comprehensive value proposition to clients and brokers Delivering underwriting
Slide 43: Establishing a geographic footprint that delivers value
Everest Group, Ltd. UK & Ireland Continental Europe Latin America Asia Pacific 43 Market size & maturity Demand for lead & multinational capabilities Strong pool of top-tier talent Need for core products & value proposition Intentional expansion in the most profitable global economies Intentional en
Slide 44: Product focus
Everest Group, Ltd. 44 Product focus Diversified product mix generates consistent and strong margins throughout the cycle Market opportunity with largest global commercial insurers Ongoing product innovation and expansion Well-positioned for attractive opportunity to address market needs Target cust
Slide 45: Talent, technology and analytics to be a partner of choice
Everest Group, Ltd. 45 Talent, technology and analytics to be a partner of choice Hiring top talent Attracting premier global talent hungry to be part of the platform we are building Culture of collaboration, expertise and partnership Global analytics, deployable locally Centralized global data lake
Slide 46: The Everest Blueprint is a sustainable and repeatable framework
Everest Group, Ltd. The Everest Blueprint is a sustainable and repeatable framework that positions international expansion for success Knowing how to integrate each core function of our blueprint is our competitive advantage 46 Applying our blueprint to create a leading global insurance company Comb
Slide 47: Creating a global partner of choice
Everest Group, Ltd. 47 Creating a global partner of choice Proven leadership team executing our global blueprint Expanding organically, enabling control over each aspect of the buildout Foundation established for lead market and multinational capabilities Strong relationships with key brokers and cl
Slide 48: Group finance overview
Group finance overview Mark Kociancic – Executive Vice President and Chief Financial Officer
Slide 49: Strong execution delivering on our financial plan
Everest Group, Ltd. High liquidity Disciplined capital allocation Consistent performance management 49 Strong execution delivering on our financial plan Attractive value creation profile Strong financial strength Strong earnings profile Strong culture, focus on execution, and accountability at the c
Slide 50: Everest delivered value for stakeholders within the 2021-2023 strategic plan
Everest Group, Ltd. 50 Everest delivered value for stakeholders within the 2021 – 2023 strategic plan Metrics 2021 Investor Day objectives Execution through 3Q’23 Underwriting Gross Written Premium Growth Group: 10 – 15% CAGR Group: ~15% CAGR CAT Loss Ratio 6 – 7% 7.8%1 Group General Expense Ratio ~
Slide 51: Well positioned for the current interest rate environment
Everest Group, Ltd. Well positioned for the current interest rate environment 51 Everest’s investment portfolio guiding principles Dual strategy approach: Stable income and total return Strong credit quality High degree of liquidity Match asset / liability duration Portfolio diversification Optimize
Slide 52: Growing and profitable platforms supported by well-managed investments
Everest Group, Ltd. Short-Term 7% CLO 5% Less LiquidPrefe rred … EMC/EMD 10% Loans 36% Private IG 1% Direct Credit 0% , 20%, 20% Rated Structures 13% Highly Liquid 45% Liquid 55% Less Liquid, 13%, 13% 52 Growing and profitable platforms supported by well-managed investments 2023-YTD NII: $1.0 bn Ass
Slide 53: Conservative reserving approach and robust governance process
Everest Group, Ltd. 53 Conservative reserving approach and robust governance process Strengthened reserving process Granular and timely reserving studies Invested in talent and reserving tools Conservative initial loss picks reflecting elevated inflation estimates Reserving studies undergo four leve
Slide 54: Broadly diversified reserve portfolio
Everest Group, Ltd. Broadly diversified reserve portfolio by geography and line of business, reducing the impact of any one risk factor. Economic Inflation Factors: Take a long-term and layered view on inflation factors that impact different lines of business in different ways. Social Inflation: Lit
Slide 55: Strong and flexible balance sheet capital position
Everest Group, Ltd. $219 $400 $1,000 $1,000 2037 … 2044 … 2050 … 2052 55 Strong and flexible balance sheet capital position 1 Equity excludes URGL. LT Debt excludes FHBL borrowings $ in millions Capital position review Key Statistics (9/30/23) A1 / A+ Financial Strength Profile 18.6%1 Long-Term Debt
Slide 56: Prudent liquidity management
Everest Group, Ltd. 56 Prudent liquidity management Strong liquidity profile Strong operating cash flows Readily marketable investment securities $2.5 bn Federal Home Loan Bank (FHLB) credit borrowing capacity U.S. platform minimizes collateral requirements Conservative PMLs Quality reinsurance with
Slide 57: Capital management framework
Everest Group, Ltd. 57 Capital management framework Thoughtful and stable underwriting capital serves clients and investors Capital strategy Multiple forms of underwriting capital Utilizing capital that is most relevant for each risk Mt. Logan Re has strategic prioritization amongst capital shield t
Slide 58: Equity offering overview
Everest Group, Ltd. 58 Equity offering overview Offensive capital deployment is mainly aimed at taking advantage of the hard market in reinsurance Expected to be fully deployed by Jan 1, 2024 Multiple opportunities for capital deployment at superior risk-adjusted returns Long-term strategic opportun
Slide 59: Everest deploys an efficient global platform
Everest Group, Ltd. 80% 5% 7% 7% 1% USD CAD GBP EUR Other* 59 Everest deploys an efficient global platform United States Bermuda United Kingdom European Union Switzerland Canada Chile Singapore Operations based in advanced countries with stable political, regulatory and legal systems Focused on majo
Slide 60: Enhancing our return profile
Everest Group, Ltd. Enhancing our return profile 1 Total Shareholder Return defined as annual growth in Book Value Per Share excluding Unrealized Gains and Losses on Fixed Maturity Investments, plus Dividend Investment Income XXX 60 Capital Management 2021 Investor Day TSR1 target ~13% Investment In
Slide 61: 3-Year (2024-2026) strategic plan financial highlights
Everest Group, Ltd. 3-Year (2024 – 2026) strategic plan financial highlights Total Shareholder Return* 3-Year >17% * Total Shareholder Return defined as annual growth in Book Value Per Share excluding Unrealized Gains and Losses on Fixed Maturity Investments, plus Dividends Per Share 1 Moderately-hi
Slide 62: Everest: The one to watch
Everest: The one to watch Juan C. Andrade – President and Chief Executive Officer
Slide 63: Positioned to outperform and deliver differentiated value
Everest Group, Ltd. Disciplined specialty Insurance strategy delivering margin expansion Growing high-quality investment portfolio A+ balance sheet strength and nimble capital deployment create optionality 63 Positioned to outperform and deliver differentiated value Seasoned management team with pro
Slide 64: Intermission
everest’ Intermission
Slide 65: Question & answer session
everest’ Question & answer session
Slide 66: Years of underwriting opportunity
years of underwriting opportunity
Slide 67: Years of underwriting opportunity
years of underwriting opportunity
Slide 68: Glossary and definitions
Everest Group, Ltd. 68 • BVPS: Book Value per Share • CLO: Collateralized Loan Obligation • CR: Combined Ratio • DPS: Dividend per Share • EMD: Emerging Market Debt • Fac: Facultative Risk • ILS: Insurance-linked Securities • ILW: Industry Loss Warranty • PML: Probable Maximum Loss • Private IG: Pri
Slide 69: Reinsurance business description
Everest Group, Ltd. 69 Reinsurance business description Reinsurance Segment Our reinsurance segment writes worldwide property and casualty reinsurance and specialty lines of business on both a treaty, facultative and large corporate risk basis. Contracts can be written on a proportional ("pro-rata")
Slide 70: Insurance business description
Everest Group, Ltd. 70 Insurance business description Insurance Segment Our insurance segment offers property and casualty insurance products on a worldwide basis. The following are the lines of business in our insurance segment: Accident & Health: Predominantly includes policies covering Participan