Everest Group, Ltd. · NYSE:EG
Everest — Everest Re Group — Q3 2012 Earnings Presentation
16 slides from Everest's earnings presentation, 2012
Slide 1: Investor Presentation Third Quarter 2012
INVESTOR PRESENTATION THIRD QUARTER 2012 EVEREST RE GROUP, LTD • WESSEX HOUSE, 45 REID STREET, 2ND FLOOR • HAMILTON HM DX, 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 mid-teens compound annual growth rate in shareholder value. 3 EVEREST RE GROUP, LTD.
Slide 4: Investor Value Proposition
Investor Value Proposition TOTAL SHAREHOLDER RETURN (Growth in BVPS + Dividends) $145.65 $126.52 $125.98 BOOK VALUE PER SHARE DIVIDENDS $112.02 $95.74 $88.00 $81.92 $68.44 $66.83 $58.79 $48.14 $38.46 $35.39 $30.10 $29.32 $26.21 $21.66 $19.39 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 200
Slide 5: The Everest Advantage
The Everest Advantage WELL POSITIONED TO CONTINUE TO BUILD VALUE Strong Brand Recognition 2011 Gross Written Premium $4.3 Billion Insurance Top ratings (A.M. Best A+; S&P A+; Moody’s Aa3, Fitch 23% AA-) Experienced Management Team and Board of Directors Winning Culture – disciplined, focused on prof
Slide 6: Financial Highlights
Financial Highlights For the year ended December 31, YTD ($ in millions) 2007 2008 2009 2010 2011 2012 Income Statement Data: Gross Premiums Written $ 4,077.6 $ 3,678.1 $ 4,129.0 $ 4,200.7 $ 4,286.2 $ 3,159.5 Net Premiums Earned 3,997.5 3,694.3 3,894.1 3,934.6 4,101.3 3,045.2 Net Investment Income 6
Slide 7: Long Term Performance
Long Term Performance DEMONSTRATES STRONG CYCLE MANAGEMENT 5 Year 10 Year ITD Key Profitability Measures 2007-2011 2002 -2011 1996-2011 Combined Ratio 99.4% 99.8% 101.8% Combined Ratio excluding A&E 97.4% 97.8% 99.3% Pretax Operating ROR 13.8% 12.5% 13.2% Pretax Operating ROR excluding A&E 15.1% 14.
Slide 8: Strategic Management of the Portfolio
Strategic Management of the Portfolio ACTIVE PORTFOLIO MANAGEMENT IN RESPONSE TO MARKET CONDITIONS 2011 2004 23% US Reins 25% US Reins 31% By Segment Intl 42% Intl Bermuda Bermuda 17% 19% Insurance Insurance 29% 14% 15% 22% By Line of Business Reins Property Reins Property 8% Reins Casualty Reins Ca
Slide 9: 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 Bermuda London United States Canada • Chicago, IL Belgium Singapore • Atlanta, GA • British Columbia,
Slide 10: Competitive Positioning
Competitive Positioning STRONG PRODUCT DIVERSITY 100% 90% 77% of our book is Reinsurance, where 80% there is more control over pricing and it is 70% easier to exit poorly performing business 60% Life 50% Insurance 64% of the overall book is in 40% 30% Reinsurance Property/Short-tail lines (72% of th
Slide 11: Geographical Diversity in Reinsurance Book
Geographical Diversity in Reinsurance Book AMONGST THE MOST INTERNATIONALLY DIVERSIFIED REINSURANCE ORGANIZATIONS Worldwide, 2% Middle East/Africa, 7% Latin America, 15% Europe/UK, 18% Asia/Australia, 9% Canada, 6% USA, 43% 11 EVEREST RE GROUP, LTD.
Slide 12: Strong Risk Management Culture
Strong Risk Management Culture WITH CONSIDERABLE FINANCIAL FLEXIBILITY PML as Percent of Shareholders' Equity Debt + Preferred Equity to Capital As of 4/1/12 As of 3/31/12 LRE.L ENH VR MRH ENH XL FSR FSR AHL AHL ALTE PRE AXS PRE RNR AWH AWH XL ACE MRH ACGL ACGL ALTE AXS VR PTP PTP RE RE ACE LRE.L 0%
Slide 13: Driving Shareholder Returns Through Buybacks
Driving Shareholder Returns Through Buybacks A STRATEGY OF ACTIVE CAPITAL MANAGEMENT OVER TIME $550,000 Dividends & Share Shares repurchased ($) Dividends paid to shareholders Repurchases $350,000 Common shares issued $150,000 $ thousands -$50,000 Common Equity Raised -$250,000 -$450,000 -$650,000 -
Slide 14: Conservative Leverage and Liquidity
Conservative Leverage and Liquidity FIGURES AS OF 9/30/12 – INVESTABLE ASSETS OF $16.5 BILLION Capitalization Liquidity 100% Cash & Short Government Mortgage/ 90% Term 9% 2% Asset Backed Other 4% 16% 80% 70% 60% Junior Sub-Debt Long-Term Sub-Notes 50% Non U.S. 5.4% Senior Debt 28% 40% Corporate Comm
Slide 15: Conclusion
Conclusion ■ Strong franchise that has successfully weathered numerous market cycles ■ Seasoned management team focused on building long term value for our shareholders ■ Disciplined underwriting culture – profitability before growth – supported by a strong risk management framework ■ Conservative,
Slide 16: Everest Re Group, Ltd.
EVEREST RE GROUP, LTD. Wessex House, 45 Reid Street, 2nd Floor, P. O. Box 845, Hamilton, HM DX, Bermuda