Everest Group, Ltd. · NYSE:EG
Everest — Q1 2021 Earnings Presentation
18 slides from Everest's earnings presentation, Apr 29, 2021
Slide 1: Everest Re Group Investor Presentation First Quarter 2021
EVEREST RE GROUP, LTD. I N V E S T O R P R E S E N TAT I O N First Quarter 2021 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 202
Slide 5: Everest Reinsurance Division
EVEREST REINSURANCE DIVISION A LEADING GLOBAL REINSURER QUARTERLY HIGHLIGHTS GROSS W RITTEN PREMIUM – USD MILLIONS $7,282 Targeted and disciplined growth in an improving market, gross $6,225 $6,356 $5,115 $4,247 written premiums up 16% for the quarter $2,059 Attritional combined ratio improved 2
Slide 6: Everest Insurance Division
EVEREST INSURANCE® DIVISION A PREMIER GLOBAL SPECIALTY INSURANCE OPERATION QUARTERLY HIGHLIGHTS GROSS W RITTEN PREMIUM – USD MILLIONS $3,201 Achieved strong growth in gross written premiums, up 10% for $2,778 $2,059 $2,251 the quarter (20% excluding worker’s compensation) $1,787 $872 Attritional
Slide 7: Robust Financial Strength
ROBUST FINANCIAL STRENGTH STRONG CAPITAL BASE, LOW DEBT LEVERAGE, AND TOP TIER RATINGS Balance Sheet As of 1Q 2021 $9.7B 16.5% $25.9B GAAP EQUITY DEBT TO CAPITAL INVESTMENT PORTFOLIO WITH Aa3 AVERAGE RATING 69% / 31% 51% / 49% Diversified Business Mix (2020 data) REINSURANCE INSURANCE CASUALTY PROPE
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 7.6% Everest 16.5% Renaissance Re 18.4% Hanover Insurance 19.6% Alleghany 19.6% Hartford 20.2% Arch 21.4% Chubb 21.9% Markel 24.1% Axis 26.0% W. R. Berk
Slide 9: Diversified Investment Portfolio
DIVERSIFIED INVESTMENT PORTFOLIO HIGH CREDIT QUALITY AND STRONG LIQUIDITY QUARTERLY HIGHLIGHTS ADDITIONAL DETAILS Record net investment income of $260 million for the quarter including alternative investment gains of $120 million $25.9B TOTAL INVESTED ASSETS Total invested assets and cash of $25
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: Think Global, Trade Local
THINK GLOBAL, TRADE LOCAL LOCAL EXECUTION GROUP DISCIPLINE 24 offices in 10 countries give us the Rigorous centralized business controls, ability to develop local insights and risk management, and portfolio deploy on-the-ground assets oversight Distribution and customer access to deep Dynami
Slide 12: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM EXTENSIVE GLOBAL INDUSTRY EXPERIENCE Juan C. Andrade Mark Kociancic Jim Williamson President & CEO Executive Vice President, Executive Vice President, 33 years Chief Financial Officer Chief Operating Officer 29 years 26 years John P. Doucette Michael Karmilowicz Sanjoy Mu
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: Foundations – The Power of Talent and Culture
FOUNDATIONS – THE POWER OF TALENT AND CULTURE CONSISTENTLY RECOGNIZED BY BUSINESS INSURANCE AS A “BEST PLACE TO WORK” THOUGHTFUL TALENT ASSUMPTION OF RISK EXECUTION EFFICIENCY Talent is the lifeblood of our Intelligent, creative, A performance culture Careful decision making and organization and and
Slide 15: Committed to Advancing ESG
COMMITTED TO ADVANCING ESG We believe that a sustainable future for our company must encompass the values important to our customers, employees and the communities in which we operate. These values define our corporate responsibility and guide us to pursue sustainability. Environmental Commitment to
Slide 16: Appendix
APPENDIX
Slide 17: Financial Highlights
FINANCIAL HIGHLIGHTS For the year ended December 31, ($in millions, except per share data) 1Q21 YTD 2020 2019 2018 2017 2016 BALANCE SHEET Cash and Investments $25,940.8 $25,461.6 $20,748.5 $18,433.1 $18,626.5 $17,483.1 Shareholders’ equity $9,682.9 $9,726.2 $9,132.9 $7,860.8 $8,340.7 $8,033.1 Book
Slide 18: Seon Place, 4th Floor, Hamilton, Bermuda
Seon Place, 4th Floor 141 Front Street P.O. Box HM 845 Hamilton, HM 19 Bermuda