Everest Group, Ltd. · NYSE:EG
Everest — Everest Re Group — Q4 2019 Earnings Presentation
18 slides from Everest's earnings presentation, 2020
Slide 1: Investor Presentation Fourth Quarter 2019
INVESTOR PRESENTATION Fourth Quarter 2019 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: Corporate Objectives
CORPORATE OBJECTIVES Everest Re Group is a worldwide multi-line reinsurance and insurance organization. Our key objectives are to: Maximize total value creation over time, and Achieve long term double-digit compound annual growth in shareholder value. Total Value Creation (Growth in book value p
Slide 4: Long Term Performance
LONG TERM PERFORMANCE Demonstrates Strong Cycle Management Key Profitability Measures Operating ROE 9.8% 5 Year 10 Year 9.1% 8.6% 8.4% 2015-2019 2010-2019 Combined Ratio* 96.8% 96.3% Pretax Operating ROR 11.6% 13.1% Operating ROE 9.1% 9.8% 5Yr Avg 10Yr Avg Everest Peer Avg¹ *Weighted Average ¹ AFG,
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS For the year ended December 31, ($ in millions) 2019 2018 2017 2016 2015 Income Statement Data: Gross Premiums Written $9,133.4 $ 8,475.2 $ 7,173.9 $ 6,033.9 $ 5,891.7 Net Premiums Earned 7,403.7 6,931.7 5,937.8 5,320.5 5,292.8 Net Investment Income 647.1 581.2 542.9 473.1 473.5
Slide 6: Everest—Fundamental Strengths
EVEREST—FUNDAMENTAL STRENGTHS Balance Sheet $9.1B 6.5% $20.7B As of 4Q2019 GAAP Equity Debt to Capital Investment Portfolio with A1 Average Rating Diversified 70% 30% 49% 51% Business Mix (2019 data) Reinsurance / Insurance Property / Casualty 6.0% expense ratio Experienced underwriting teams, globa
Slide 7: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Everest Re Group Senior Executives Juan C. Andrade President and Chief Executive Officer John Doucette Jonathan Zaffino Craig Howie Sanjoy Mukherjee Gail Van Beveren Terry Walker EVP and President EVP and President EVP and Chief EVP, General Senior Vice Senior Vice and CE
Slide 8: Underwriting Teams in Key Business Locations
UNDERWRITING TEAMS IN KEY BUSINESS LOCATIONS Expansive Distribution Network that Spans Five Continents Everest Global Office Locations United States Non-U.S. • Atlanta, GA • Bermuda • Boston, MA • Belgium • Chicago, IL • Brazil • Houston, TX • Canada • Indianapolis, IN • Ireland • Liberty Corner, NJ
Slide 9: Everest Reinsurance Division - Leading Global Reinsurer
EVEREST REINSURANCE DIVISION - LEADING GLOBAL REINSURER 2019 GWP Geography Everest Reinsurance Ops 2017 2018 2019 Gross Written Premium $5,114.7 $6,224.6 $6,355.9 52% United States 22% Europe (incl. UK) Combined Ratio 103.1% 113.0% 95.4% 11% Latin America/ South America 5% Asia/Australia Attritional
Slide 10: Everest Insurance - A Premier Global Specialty Insurance Operation
EVEREST INSURANCE - A PREMIER GLOBAL SPECIALTY INSURANCE OPERATION 2018 & 2019 GWP Business Mix Everest Insurance Ops 2017 2018 2019 2018 2019 Gross Written Premium $2,059.2 $2,250.6 $2,777.5 Combined Ratio 104.8% 95.3% 95.8% Attritional Combined Ratio 96.9% 96.5% 96.5% A modern-era specialty insu
Slide 11: Favorable Accident Year Loss Development
FAVORABLE ACCIDENT YEAR LOSS DEVELOPMENT 10 Year Loss Reserving Experience – Initial to Ultimate 90.8% 88.4% 100.0% 86.4% 81.1% 90.0% 75.9% 75.9% 75.7% 73.8% 69.0% 80.0% 66.9% 66.0% 65.5% 64.6% 59.4% 59.4% 59.1% 70.0% 57.8% 57.7% 56.4% 55.7% 51.3% 49.5% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 2009
Slide 12: 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 2017 2018 2019 KILIMANJARO RE LTD. KILIMANJARO RE LTD. KILIMANJARO RE LTD. MT LOGAN (SERIES 2017- 1&2) (SERIES 2018- 1&2) (SERIES 2019 1&2) Covered Perils: Covered Perils: U.
Slide 13: Active Capital Management Improves Shareholder Value
ACTIVE CAPITAL MANAGEMENT IMPROVES SHAREHOLDER VALUE Book Value Per Share Has Increased 2.2x since 2009 $223.85 $197.45 $204.25 $193.37 $178.21 $166.75 $146.57 12,827 13,210 12,441 6,125 $130.96 $115.45 $112.99 10,615 11,152 2,825 2,625 $102.87 2,900 9,722 1,575 819 1,575 1,028 634 950 869 1,046 7,5
Slide 14: Conservative Leverage Investment Portfolio
CONSERVATIVE LEVERAGE INVESTMENT PORTFOLIO Figures as of 12/31/19 Capitalization 100% 9.0 One of the 80% 60% 7.8 7.7 7.5 8.0 Lowest Debt Leverage Ratios 7.3 7.1 40% 7.0 6.5 20% in the Industry 0% 6.0 2014 2015 2016 2017 2018 2019 4.9% Senior Debt Long-Term Sub-Notes Common Equity Debt Leverage Inves
Slide 15: Strong and Consistent Operating Cash Flows
STRONG AND CONSISTENT OPERATING CASH FLOWS Add to Strong Liquidity Profile '08-'09 '11 '18 Financial Crisis/ Japan EQ & CA fires, Hurricanes Michael & Florence, Recession Thai Floods Asia Pacific/Australian Events* '12 '19 '17 Hurricane Townsville Monsoon, Hurricanes HIM, Mexico Sandy Hurr Dorian, T
Slide 16: Significant Total Return to Shareholders
SIGNIFICANT TOTAL RETURN TO SHAREHOLDERS 1,821.0% 900% Everest 800% 779.2% S&P 500 700% 600% 500% 400% 301.0% 315.4% 300% 264.0% 256.4% 200% 192.6% 161.5% 100% 82.3% 73.8% 0% 5 Years 7 Years 10 Years 15 Years Inception to Date Everest Re total return* over S&P 500: 2014-2019 2012-2019 2009-2019 2004
Slide 17: The Everest Franchise Is Well Positioned for Success
THE EVEREST FRANCHISE IS WELL POSITIONED FOR SUCCESS A Business Model That is Not Easily Replicated FOCUS ON SHAREHOLDER VALUE LEADING THE MARKET SIGNIFICANT SCALE 11.6% CAGR in Dividend Adjusted BVPS since 1995 48 years 26 of Market Experience Top Ratings Offices Worldwide A+ A.M. Best & S&P Meanin
Slide 18: Everest Re Group, Ltd.
EVEREST RE GROUP, LTD. Seon Place, 141 Front Street, 4th Floor, P. O. Box HM 845, Hamilton HM 19, Bermuda