Everest Group, Ltd. · NYSE:EG
Everest — Q4 2024 Earnings Presentation
17 slides from Everest's earnings presentation, January 2025
Slide 1: Preliminary Reserving Results Presentation
Preliminary Reserving Results Presentation Fourth Quarter 2024
Slide 2: Cautionary Note On Forward-Looking Statements and Preliminary Estimates
Cautionary Note On Forward-Looking Statements and Preliminary Estimates This presentation and the accompanying remarks contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. We intend these forward-looking statements to be covered by the s
Slide 3: 4Q 2024 Reserve Action Overview
4Q 2024 Reserve Action Overview Decisive actions to fortify US casualty reserves Net Reserve Development Key Takeaways Amount (pre-tax)1 Our booked reserves reflect Management’s Best Estimate Reinsurance Segment Reinsurance Segment: U.S. Casualty Reinsurance2 (adverse) $684 million • Favorable devel
Slide 4: U.S. Casualty Insurance: Loss Landscape
U.S. Casualty Insurance: Loss Landscape Loss experience exacerbated by social inflation Elevated loss trend driven by legal system abuse in certain U.S. casualty lines, including General Liability, Excess / Umbrella, Commercial Auto Principal drivers of social inflation include: • Increased frequenc
Slide 5: North America Insurance Response
Everest North America Insurance Response Significantly transforming the U.S. casualty underwriting platform Aggressive New Leadership Balancing Exiting Non-Core Improving Value Underwriting Team Portfolio Business Proposition Action Replaced key Accelerating growth in Sold Sports and Drive casualty
Slide 6: The Future of Everest Insurance
The Future of Everest Insurance North America Insurance International Insurance • Continue adding and developing • Continuing to invest in capabilities and best-in-class talent to drive superior scaling the platform at an improving underwriting results expense ratio • Deepening regional presence to
Slide 7: Reinsurance U.S. Casualty Reserves
Everest Reinsurance U.S. Casualty Reserves Reinsurance Segment: 72% of Group’s Net Reserves U.S. Casualty Ultimate Loss Ratio by Underwriting Year Reinsurance Segment Reserves as of December 31, 2024 120% 100% 80% U.S. Casualty Other Casualty 60% Property 40% Specialty 20% Mortgage 0% 2015 2016 2017
Slide 8: Insurance U.S. Casualty Reserves
Everest Insurance® U.S. Casualty Reserves Insurance Segment: 24% of Group’s Net Reserves U.S. Casualty Ultimate Loss Ratio by Accident Year Insurance Segment Reserves as of December 31, 2024 120% 100% U.S. Casualty 80% U.S. Prof. Liability / Umbrella Other GL 60% Workers' 40% U.S. General Compensati
Slide 9: Other Segment Reserves
Everest Other Segment Reserves Other Segment: 4% of Group’s Net Reserves Other Segment Reserves Newly created “Other” segment includes the as of December 31, 2024 recently sold sports and leisure insurance business, legacy asbestos and environmental, and other discontinued insurance programs and cov
Slide 10: Prospective Approach to U.S. Casualty Insurance Loss Picks
Prospective Approach to U.S. Casualty Insurance Loss Picks U.S. Casualty Industry Loss Trend Assumption U.S. Casualty Insurance Loss Pick Approach ~12% Everest U.S. casualty insurance loss pick approach going forward: • Utilizing updated loss cost trend for general liability, excess / umbrella, and
Slide 11: Path Towards Consistently Generating Attractive Returns
Path Towards Consistently Generating Attractive Returns Today’s action: aggressive Tier-1 lead market global response to U.S. casualty lines reinsurance franchise reserves in all segments Rapidly transforming North Organic international insurance America insurance platform to expansion performing st
Slide 12: Appendix
Appendix Everest Group, Ltd. 12
Slide 13: Reinsurance U.S. Casualty Reserving Detail
Everest Reinsurance U.S. Casualty Reserving Detail Underwriting Year Reserving Detail Underwriting Year ("UY") 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 4Q'23 $20 $49 $92 $215 $453 $774 $1,119 $1,233 $639 IBNR ($M) 4Q'24 $30 $51 $68 $199 $306 $647 $995 $1,134 $1,470 $533 4Q'23 $96 $160 $228
Slide 14: Insurance U.S. Casualty Reserving Detail
Everest Insurance® U.S. Casualty Reserving Detail Accident Year Reserving Detail Accident Year ("AY") 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 4Q'23 $1 $3 $15 $25 $58 $103 $204 $385 $653 IBNR ($M) 4Q'24 $1 $3 $3 $24 $78 $193 $318 $498 $749 $925 4Q'23 $4 $12 $24 $52 $135 $185 $319 $495 $709
Slide 15: Other Segment Reserving Detail
Everest Other Segment Reserving Detail Accident Year Reserving Detail Accident Year ("AY") 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 IBNR ($M) 4Q'24 $1 $1 $3 $8 $25 $45 $63 $123 $155 $124 Total Reserves ($M) 4Q'24 $1 $3 $4 $14 $33 $51 $89 $154 $179 $133 IBNR as % of Total 4Q'24 40% 20% 60% 6
Slide 16: Endnotes
Endnotes 1 Amounts may not sum due to rounding. 2 U.S. Casualty Reinsurance contains all treaty and facultative casualty classes writing predominantly U.S. (but also a small amount of non-U.S.) exposures in auto liability, excess / umbrella, and general liability lines, and also a small portion of w
Slide 17: Glossary
Glossary Accident Year (“AY”): Accident year refers to the year in which a claim occurs. Underwriting Year (“UY”): We rely primarily on underwriting year data for our internal reinsurance reserve analyses, as accident year is not generally available for contracts written on a pro rata basis. Underwr