Everest Group, Ltd. · NYSE:EG
Everest — Q3 2022 Earnings Presentation
24 slides from Everest's earnings presentation, Oct 27, 2022
Slide 1: Investor Presentation Third Quarter 2022
Investor Presentation Third Quarter 2022
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 Strategic Overview
Everest Strategic Overview
Slide 4: Forging a New Path Forward – Strategic Plan Highlights
Forging a New Path Forward – Strategic Plan Highlights DIVERSIFIED EARNINGS POWER EXPANDING MARGINS LEADING WITH REDUCED GLOBAL VOLATILITY FRANCHISE AMBITIOUS DISCIPLINED FINANCIAL UNDERWRITING PERFORMANCE SEASONED LEADERSHIP TEAM 4
Slide 5: Everest 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, President & CEO of Chief Operating Chief Communications Chief Underwriting EVP, Chief Human EVP, General Counsel, Chief the Insurance Division Officer
Slide 6: Everest - Strategic Building Blocks
Everest - Strategic Building Blocks BUILDING OUR FRANCHISES Grow the P&C Insurance Platform with Expanded Margins Capitalize on and Grow Leading P&C Reinsurance Franchise CONTINUOUS PURSUIT OF WINNING BEHAVIORS CONTINUOUS OPERATIONALPURSUIT OF EXCELLENCE WINNING BEHAVIORS OPERATIONAL EXCELLENCE
Slide 7: Local Leaders Drive Superior Execution
Local Leaders Drive Superior Execution Recently increased local primary insurance presence in Asia, LatAm & Europe Think Globally, Trade Locally LOCAL STATEGY IN ACTION • Offices in all key global reinsurance centers – local decision makers empowered to transact • Ceding clients in 115 countries • D
Slide 8: Everest – A Leading Global Platform for Insurance and Reinsurance
Everest – A Leading Global Platform for Insurance and Reinsurance Insurance: • Double Digit Growth Trajectory Coupled With Consistent Margin Expansion Reinsurance: • The 7th Largest Global Reinsurer With Focus on Strategic Market Opportunities and Reduced Volatility REINSURANCE AND INSURANCE GWP $13
Slide 9: 3-Year Strategic Plan Financial Target Assumptions
3-Year Strategic Plan Financial Target Assumptions Underwriting GWP Growth Rate Key Ratios Income 2023 • Group: 10 – 15% CAGR • 91% - 93% CR (Group and Divisions) • Reinsurance: 8 – 12% CAGR • 6 – 7% Cat load (included in CR) Total • Insurance: 18 – 22% CAGR • ~6% Group general expense ratio Shareho
Slide 10: Quarterly and Annual Results Summary
Quarterly and Annual Results Summary
Slide 11: Group Quarterly Highlights, Total Shareholder Return and Net Income
Everest Group Quarterly Highlights, Total Shareholder Return and Net Income 2022 THIRD QUARTER HIGHLIGHTS TOTAL SHAREHOLDER RETURN Gross written premium of 14.7% $3.7 billion, 6% growth 6.9% YoY in constant dollars -1.0% 2020 2021 3Q22 annualized 87.6% attritional combined ratio • Our primary metric
Slide 12: Everest Insurance Division Quarterly Highlights
Everest Insurance® Division Quarterly Highlights 2022 THIRD QUARTER HIGHLIGHTS YEAR TO DATE HIGHLIGHTS • Gross written premiums of $1.1 billion GROSS WRITTEN PREMIUM – USD MILLIONS reflecting a 13% increase year over year in $3,376 constant dollars, driven by balanced and $2,329 $2,924 diversified g
Slide 13: Everest Reinsurance Division Quarterly Highlights
Everest Reinsurance Division Quarterly Highlights 2022 THIRD QUARTER HIGHLIGHTS YEAR TO DATE HIGHLIGHTS • Q3 Gross written premiums of $2.6 billion GROSS WRITTEN PREMIUM – USD MILLIONS versus $2.5 billion a year ago. Growth driven by $6,938 $6,696 casualty lines and continued international $5,403 ex
Slide 14: Everest – Quarterly Financial Highlights
Everest – Quarterly Financial Highlights Equity and Capital Resources Investment Income and Cash Flow $7.6 billion in Enhanced interest income from shareholders’ equity including $2.0 higher rates and the strong billion of unrealized losses on the alternatives contribution fixed maturity portfolio E
Slide 15: Transforming Everest's Risk Profile
Transforming Everest’s Risk Profile Improved risk adjusted returns and reduced exposure to natural catastrophe events Superior Risk / Return Economics After Tax Net 1:100 PML as a % of Group within our Defined Risk Appetite Equity Excluding URGL 1 15.6% 12% 1 in 50 2019 9% 8% 6% 7% 6% 5%12.9% 6% 6%
Slide 16: Everest Segment Summary
Everest Segment Summary
Slide 17: Everest Insurance Leading Insurance Platform
Everest Insurance® Leading Insurance Platform BUILT FROM THE GROUND UP – HISTORY OF GWP GROWTH Global Specialty Insurer $ in billions $4.0 • Deep set of specialty products and strong $3.2 underwriting expertise $2.8 • Well positioned to drive results throughout the $2.1 $2.3 market cycle • Disciplin
Slide 18: Everest 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 • Leading global P&C reinsurer with 40+ year $7.3 broker relationships $6.2 $6.4 • Extensive product breadth, with history of entrepreneurship and pursu
Slide 19: Everest Investment Portfolio
Everest Investment Portfolio INVESTMENT PORTFOLIO GUIDING PRINCIPLES QUARTERLY AND YEAR TO DATE HIGHLIGHTS • Portfolio diversification • High degree of liquidity Dual strategy approach: • Strong credit quality Stable income and total return • Asset/liability duration matching • Optimize risk adjuste
Slide 20: Commitment to ESG is a Core Pillar of Corporate Strategy
Commitment to ESG is a Core Pillar of Corporate Strategy Promoting Environmental Awareness, Diversity, and Social Responsibility in our Communities Environment & Responsible Investing Diversity, Equity, and Inclusion (“DEI”) • Launched a bias awareness and reduction program in 2020 for all Everest C
Slide 21: Conclusion - Investing In Everest
Conclusion - Investing In Everest Everest is a leading global reinsurance and insurance franchise Seasoned leadership team in place forging a new path forward Broadly diversified earnings power: Reinsurance, Insurance and Investments Franchises are well positioned to drive growth and expand margins
Slide 22: Appendix
Appendix
Slide 23: Financial Highlights: Current and Historical
Financial Highlights Current and Historical For the year ended December 31, ($ in millions, except per share data) 3Q22 2022 YTD 2021 2020 2019 2018 2017 BALANCE SHEET Cash and Investments 28,516 28,516 $29,673 $25,462 $20,749 $18,433 $18,627 Shareholders’ equity 7,649 7,649 $10,139 $ 9,726 $9,133 $
Slide 24: Tracking Total Shareholder Return
Tracking Total Shareholder Return In USD millions except share and per share amounts 3Q22 2021 2020 2019 Reported Shareholders' Equity 7,649 10,139 9,726 9,133 Net unrealized gains / (losses) ( 1,959) 239 724 304 Shareholders Equity excluding unrealized gains 9,608 9,900 9,002 8,829 Reported BVPS 19