Everest Group, Ltd. · NYSE:EG
Everest — Q4 2021 Earnings Presentation
27 slides from Everest's earnings presentation, Feb 10, 2022
Slide 1: Investor Presentation Fourth Quarter 2021
Investor Presentation Fourth Quarter 2021
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 secur
Slide 3: Forging a New Path Forward
Forging a New Path Forward BUILDING ON STRENGTH OPERATIONAL SCALABLE EXCELLENCE GLOBAL FRANCHISES DISCIPLINED FINANCIAL UNDERWRITING POWER SEASONED LEADERSHIP TEAM 3
Slide 4: Everest – A Leading Global Platform for Reinsurance and Specialty Insurance
Everest – A Leading Global Platform for Reinsurance and Specialty Insurance REINSURANCE AND INSURANCE GWP $13.1 $10.5 $9.1 $4.0 $8.5 $7.2 $3.2 $2.3 $2.8 $2.1 $9.1 $6.2 $6.4 $7.3 $5.1 2017 2018 2019 2020 2021 Reinsurance Insurance BROADLY DIVERSIFIED EARNINGS POWER The 7th Largest Global P/C Reinsure
Slide 5: Quarterly and Annual Results Summary
Quarterly and Annual Results Summary
Slide 6: Quarterly Highlights and Full Year Net Income and TSR
Everest Group Quarterly Highlights and Full Year Net Income and TSR 2021 FOURTH QUARTER HIGHLIGHTS TOTAL SHAREHOLDER RETURN Gross written premium of 14.7% 12.3% $3.4 billion, 25% growth 6.9% year over year 2019 2020 2021 91.9% combined ratio and • Our primary metric for measuring financial performan
Slide 7: Reinsurance Division Quarterly and Annual Highlights
Everest Reinsurance Division Quarterly and Annual Highlights QUARTERLY HIGHLIGHTS – 4Q 2021 ANNUAL HIGHLIGHTS • $2.4 billion in written premium, up 26% GROSS WRITTEN PREMIUM – USD MILLIONS year over year $9,067 $7,282 $6,356 • Premium growth driven by continued partnership with our core clients and
Slide 8: Insurance Division Quarterly and Annual Highlights
Everest Insurance® Division Quarterly and Annual Highlights QUARTERLY HIGHLIGHTS – 4Q 2021 ANNUAL HIGHLIGHTS • 21% growth in premium, the third GROSS WRITTEN PREMIUM – USD MILLIONS consecutive quarter above $1 billion $3,983 $3,201 GWP $2,778 • Growth driven primarily by strong new business notably
Slide 9: Investment Portfolio – Optimizing Risk Adjusted Return
Everest Investment Portfolio – Optimizing Risk Adjusted Return INVESTMENT PORFOLIO – TARGET ALLOCATION BY ASSET CLASS $1.16 billion = 5.3% ASSET CLASS ALLOCATION YE 2021 2021 annual return Min Max Actual on invested assets Cash 2% 10% 5% Fixed Income 70% 90% 79% $565 million of alternative Short-ter
Slide 10: 2021 Financial Highlights
Everest 2021 Financial Highlights Equity and Capital Assets and Cash Flow $29.7 billion in invested assets $10.1 billion in $38.2 billion in total assets shareholders’ equity 84% in fixed income and $1.0 billion in 3.125%, 31-year cash/short-term securities, 16% senior notes issued in in public/priv
Slide 11: Transforming Everest’s Risk Profile
Transforming Everest’s Risk Profile Improved risk adjusted returns and reduced exposure to natural catastrophe events Risk Profile Managed to Superior • Tail risk for peak zones has Risk / Reward Economics been meaningfully reduced since 2017 2017 • Note that 2022 is based on projected PML as of Dec
Slide 12: Strategic Overview
Everest Strategic Overview
Slide 13: Strategic Building Blocks
Strategic Building Blocks BUILDING OUR FRANCHISES Grow the Specialty P&C Insurance Platform with Expanded Margins Capitalize on and Grow Leading P&C Reinsurance Franchise Sharpen Investment Strategy CONTINUOUS PURSUIT OF WINNING BEHAVIORS OPERATIONAL EXCELLENCE Focused Underwriting Disciplin
Slide 14: Leadership: Extensive Global Industry Experience
Everest Leadership: Extensive Global Industry Experience Mike Karmilowicz Mike Mulray Dawn Lauer Chris Downey Gail Van Beveren Sanjoy Mukherjee EVP and President & Chief Operating Chief Communications CUO of EVP and Chief Human EVP and General Counsel, CEO of Insurance Officer of Insurance Officer R
Slide 15: Operating Divisions
Everest Operating Divisions
Slide 16: Everest Insurance: Leading Specialty Insurance Platform
Everest Insurance® Leading Specialty Insurance Platform BUILT FROM THE GROUND UP – HISTORY OF GWP GROWTH Specialty Commercial P&C Insurer $ in billions $4.0 $3.2 • Seasoned leadership team delivering on $2.8 exceptional growth while reducing attritional $2.3 $2.1 combined ratios through effective po
Slide 17: Diverse Product Set Appeals to Broad Spectrum of Customers
Diverse Product Set Appeals to Broad Spectrum of Customers Customer Segment Everest Offerings Small Commercial & Tech-supported Standardized Products Niche Industry Solutions Digital Partnerships Underwriting Middle Market & Empowered Specialized Terms & Speed to Market Wholesale Solutions Decision-
Slide 18: Everest Insurance - Scale Creates Margin Opportunity
Everest Insurance - Scale Creates Margin Opportunity Operating leverage Portfolio management flexibility Low 90s Combined Focused investment in technology Ratio Target Skilled cycle management 18
Slide 19: Reinsurance Division: A Leading Global Reinsurance Platform
Everest Reinsurance Division A Leading Global Reinsurance Platform HISTORY OF CONSISTENT GWP GROWTH Leading Reinsurance Platform $ in billions $9.1 $7.3 • Leading global P&C reinsurer $6.2 $6.4 $5.1 • Agile and scalable platform to pursue attractive opportunities • Broadly diversified around the wor
Slide 20: Local Leaders Drive Superior Execution
Local Leaders Drive Superior Execution Think Globally, Trade Locally LOCAL STRATEGY IN ACTION • Offices in all key global reinsurance centers – local decision makers empowered to transact • Ceding clients in 115 countries • Dynamically allocating capital across markets Note: countries with an Everes
Slide 21: Reinsurance: Drivers to Enhance Underwriting Profit
Everest Reinsurance Drivers to Enhance Underwriting Profit Ongoing Portfolio Management Focus on Accretive Growth Low 90s Nimble UW Cycle Management Combined Ratio Target Sustain Volatility Management Best-in-Class Expense Ratio 21
Slide 22: Investment Portfolio Guiding Principles
Investment Portfolio Guiding Principles 1 ENGINES OF EARNINGS POWER Portfolio Diversification 2 High Degree of Liquidity 3 Strong Credit Quality 4 Match Asset / Liability Duration 5 Dual Strategy Approach: Stable Income and Total Return 6 Optimize Risk-Adjusted Return and Capital Efficiency 22
Slide 23: Conclusion - Investing In Everest
Conclusion - Investing In Everest Everest is a growing leading global reinsurance and insurance franchise Seasoned leadership team in place forging a new path forward Broadly diversified earnings power: Reinsurance, Insurance and Investments Franchises are well positioned to drive growth and expand
Slide 24: Appendix
Appendix
Slide 25: Notes and Definitions
Notes and Definitions Reference Information Current ESG Rankings NYSE: RE Environmental: 6 * Social: 5 BB Governance: 4 FINANCIAL STRENGTH A+ A+ A1 Low Risk RATINGS A.M. Best S&P Global Moody’s Investors 44th percentile #23 of 290 Service insurers ranked STABLE OUTLOOK * AS of May 2021. Score of 1 i
Slide 26: Financial Highlights: Current and Historical
Financial Highlights Current and Historical For the year ended December 31, ($ in millions, except per share data) 4Q21 2021 2020 2019 2018 2017 BALANCE SHEET Cash and Investments $29,673 $29,673 $25,462 $20,749 $18,433 $18,627 Shareholders’ equity $10,139 $ 10,139 $ 9,726 $9,133 $7,861 $ 8,341 Book
Slide 27: Tracking Total Shareholder Return
Tracking Total Shareholder Return In USD millions except per share amounts 2021 2020 2019 Reported Shareholders' Equity 10,139 9,726 9,133 Net unrealized gains / (losses) 239 724 304 Shareholders Equity excluding unrealized gains 9,900 9,002 8,829 Reported BVPS 258.21 243.25 223.85 Number of shares