Everest Group, Ltd. · NYSE:EG
Everest — Everest Re Group — Q1 2017 Earnings Presentation
22 slides from Everest's earnings presentation, 2017
Slide 1: Everest Re Group, Ltd. Investor Presentation First Quarter 2017
EVEREST RE GROUP, LTD. I N V E S T O R P R E S E N TAT I O N FIRST QUARTER 2017 EVEREST RE GROUP, LTD • SEON PLACE, 141 FRONT STREET, 4TH FLOOR • 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: Corporate Objectives
Corporate Objectives Everest Re Group is a worldwide multi-line reinsurance and insurance organization. Our key objectives are to: Maximize book value per common share over time, and Achieve returns that provide a double-digit compound annual growth rate in shareholder value. 3 EVEREST RE GROUP,
Slide 4: Everest Re – A Premier Global Brand
Everest Re – A Premier Global Brand FOR OVER 40 YEARS, ONE OF THE TOP GLOBAL REINSURERS ACROSS THE GLOBE Map Color Key Color Mkt Share % Global platform provides 0.1% - 1.0% geographic reach across 1.0% - 1.5% virtually all property and 1.5% - 2.0% casualty lines of business 2.0% - 5.0% 5.0% - 6.0%
Slide 5: Generating Shareholder Value
Generating Shareholder Value TOTAL SHAREHOLDER RETURN Total Value Creation, defined as growth in book value per share + dividends, has averaged 14% annually over the last 5 years TOTAL SHAREHOLDER RETURN Book Value per Share $233.57 Accumulated Dividends to Shareholders $226.45 $202.51 $187.05 $163.
Slide 6: The Everest Advantage
The Everest Advantage WELL POSITIONED TO CONTINUE TO BUILD VALUE 2016 Gross Written Premium Strong Brand Recognition $6.0 Billion Top ratings (A.M. Best A+; S&P A+; Moody’s A1) Insurance Experienced Management Team and Board of Directors 30% Winning Culture – disciplined, focused on profitab
Slide 7: Experienced Management Team
Experienced Management Team Dominic Addesso President and Chief Executive Officer John Doucette Jonathan Zaffino Craig Howie Mike Kerner Sanjoy Mukherjee Daryl Bradley Ralph Groce Gail Van Beveren EVP and President SVP and President of EVP and Chief EVP and Head of EVP, General Counsel Executive Vic
Slide 8: Multiple Distribution Channels
Multiple Distribution Channels ABILITY TO RESPOND TO GLOBAL OPPORTUNITIES Key Operating Subsidiaries in the United States, Ireland, and Bermuda REINSURANCE LOCATIONS: INSURANCE LOCATIONS: United States United States Los Angeles, CA Bermuda Chicago, IL Bermuda Ireland Atlanta, GA New York
Slide 9: Resulting in Strong Momentum
Resulting in Strong Momentum 5-YEAR GROWTH FROM 2011 TO 2016 Gross Written Premium Non-Cat Underwriting Income Book Value Per Share 7,000 2000.0 260.00 6,034 83% 6,000 41% 1500.0 991 210.00 75% 197.45 1000.0 5,000 4,286 543 500.0 160.00 4,000 0.0 112.99 -301 3,000 -500.0 110.00 -1,300 2,000 -1000.0
Slide 10: Financial Highlights
Financial Highlights $ IN MILLIONS For the year ended December 31, (in millions) 2017 YTD 2016 2015 2014 2013 2012 Income Statement Data: Gross Premiums Written $ 1,600.9 $ 6,033.9 $ 5,891.7 $ 5,762.9 $ 5,220.4 $ 4,310.5 Net Premiums Earned 1,312.1 5,320.5 5,292.8 5,043.7 4,736.3 4,164.6 Net Investm
Slide 11: Long Term Performance
Long Term Performance DEMONSTRATES STRONG CYCLE MANAGEMENT 5 Year 10 Year ITD Key Profitability Measures (Compound Annual Growth Rate) 2012-2016 2007-2016 1996-2016 Combined Ratio* 86.6% 92.4% 95.8% Pretax Operating ROR 21.5% 17.7% 15.2% Operating ROE 14.6% 11.9% 11.8% Shareholder Value 13.6% 11.0%
Slide 12: Leading Global Reinsurer
Leading Global Reinsurer Everest Reinsurance Ops 2016 2016 Gross Written Premium $4,246.9 Europe/UK 17% Combined Ratio 77.6% Middle East/Africa 5% Attritional Combined Ratio 81.1% USA Worldwide 4% 52% Latin America Rank among the top 10 reinsurers worldwide 15% Global footprint with a 40-year hi
Slide 13: Building a Premier Global Specialty Insurance Operation
Building a Premier Global Specialty Insurance Operation Everest Insurance Ops 2016 2016 Canada Lloyd's Gross Written Premium $1,787.0 4% 3% Accident & Health Property/Short Combined Ratio 116.5% 10% Tail 24% Professional Attritional Combined Ratio* 97.9% Liability 11% * Excluding Heartland Crop Insu
Slide 14: Strong Risk Management Culture
Strong Risk Management Culture WITH CONSIDERABLE FINANCIAL FLEXIBILITY AND CONSERVATIVE PROPERTY CATASTROPHE EXPOSURE PML as Percent of Shareholders' Equity Debt + Preferred Equity to Capital As of 12/31/16 As of 12/31/16 Rank based on 1-250 VR AHL LRE.L AXS AHL ACGL AXS VR XL RNR RE CB ENH LRE AWH
Slide 15: Favorable Accident Year Loss Development
Favorable Accident Year Loss Development 10 YEAR LOSS RESERVING EXPERIENCE – INITIAL TO ULTIMATE 90.8% 100.0% 86.8% 90.0% 75.7% 74.2% 80.0% 66.0% 65.7% 65.1% 65.0% 64.6% 64.6% 62.1% 59.7% 59.4% 59.1% 58.6% 70.0% 57.8% 57.7% 56.9% 56.9% 56.6% 53.3% 51.3% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 2007
Slide 16: A Strategy That Embraces Alternative Capital Paradigm
A Strategy That Embraces Alternative Capital Paradigm CAPITAL MARKETS ADD TO EVEREST’S CAPACITY AND INCREASE NET MARGINS 2013 2014 2015 2017 MT LOGAN KILIMANJARO RE LTD. KILIMANJARO RE LTD. KILIMANJARO RE LTD. (SERIES 2014 - 1&2) (SERIES 2015-1) (SERIES 2017- 1&2) Covered Perils: diversified cat exp
Slide 17: Active Capital Management Improves Shareholder Value
Active Capital Management Improves Shareholder Value BOOK VALUE PER SHARE INCREASES 2.5x SINCE 2006 $203.32 $197.45 Capital Management: $178.21 $166.75 Everest historically $146.57 addresses excess 12,748 $130.96 capital through share $115.45 $112.99 11,152 buybacks 10,615 2,825 $102.87 1,575 $90.
Slide 18: Conservative Leverage and Liquidity
Conservative Leverage and Liquidity FIGURES AS OF 3/31/17 - INVESTABLE ASSETS OF $18.1 BILLION Capitalization Liquidity 100% 15.0 90% Cash & Short Term 5% Government 80% 8% Other 70% 7% 10.7 Mortgage/ 60% Asset Backed 50% 10.0 18% Non U.S. 22% 40% 7.8 7.7 30% 7.3 7.1 20% 6.5 10% Municipal 4% Equity
Slide 19: Strong and Consistent Operating Cash Flows
Strong and Consistent Operating Cash Flows ADD TO STRONG LIQUIDITY PROFILE '01 '04 '08 '11 WTC FL Hurricanes Hurr Ike Japan EQ & Thai Floods '05 '08-'09 '12 Hurricane $7.0 GWP $2.5 KRW Hurricanes Financial Sandy Cash Flow Crisis/ $6.0 $6.0 Recession $5.7 $5.9 Operating Cash Flows $5.2 $2.0 Gross Wri
Slide 20: Significant Total Return to Shareholders
Significant Total Return to Shareholders 1,417.4% 600.0% 508.2% 500.0% Everest S&P 500 400.0% 300.0% 288.8% 200.0% 172.9% 164.0% 95.6% 100.0% 21.1% 11.9% 0.0% 1 Year 5 Years 10 Years Inception to Date Everest Re total return* over S&P 500: 2015-2016 2011 - 2016 2006 - 2016 ITD 9 points 125 points 77
Slide 21: The Everest Franchise—Well Positioned for Success
The Everest Franchise—Well Positioned for Success A BUSINESS MODEL THAT IS NOT EASILY REPLICATED Top Tier Reinsurer Significant Scale Global Reach $6.0B $12.7B 14 Reinsurance Offices,* 9 outside the US 2016 Gross Written Premiums Everest + Mt. Logan + Cat Bonds 15 Insurance Offices,* 3 outside the U
Slide 22: Everest Re Group, Ltd.
EVEREST RE GROUP, LTD. Seon Place, 141 Front Street, 4th Floor, P. O. Box 845, Hamilton, HM DX, Bermuda