Everest Group, Ltd. · NYSE:EG
Everest — Everest Re Group — Q3 2019 Earnings Presentation
18 slides from Everest's earnings presentation, Jan 1, 2020
Slide 1: Investor Presentation Third Quarter 2019 – Jan 1, 2020 Update
INVESTOR PRESENTATI ON Third Quarter 2019 – Jan 1, 2020 Update 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 5 Year 10 Year Key Profitability Measures 2014-2018 2009-2018 Combined Ratio* 94.8% 95.9% Pretax Operating ROR 14.0% 14.2% Operating ROE 10.3% 10.2% *Weighted Average Operating ROE 11.5% 10.3% 10.2% 8.3% 7.7% 6.7% 6.6% 4.3% 3Yr Avg 5Yr Avg 7
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS For the year ended December 31, ($ in millions) 2019 YTD 2018 2017 2016 2015 2014 Income Statement Data: Gross Premiums Written $6,697.0 $ 8,475.2 $ 7,173.9 $ 6,033.9 $ 5,891.7 $ 5,762.9 Net Premiums Earned 5,455.6 6,931.7 5,937.8 5,320.5 5,292.8 5,043.7 Net Investment Income 50
Slide 6: Everest—Fundamental Strengths
EVEREST—FUNDAMENTAL STRENGTHS Balance Sheet $9.0B 6.6% $20.4B As of 3Q2019 GAAP Equity Debt to Capital Investment Portfolio with A1 Average Rating 73% / 27% 53% / 47% Diversified Business Mix (2018 data) Reinsurance Insurance Property Casualty 5.9% expense ratio Experienced underwriting teams, globa
Slide 7: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Everest Re Group Senior Executives Juan Andrade Chief Executive Officer John Doucette Jonathan Zaffino Craig Howie Sanjoy Mukherjee Gail Van Beveren EVP and President EVP and President EVP and Chief EVP, General Senior Vice and CEO of the and CEO of Everest Financial Offi
Slide 8: Underwriting Teams in Key Business Locations
UNDERWRITING TEAMS IN KEY BUSINESS LOCATIONS Expansive Distribution Network that Spans Five Continents REINSURANCE INSURANCE LOCATIONS: LOCATIONS: United States United States • Chicago, IL • Atlanta, GA • Liberty Corner, NJ • Boston, MA • Miami, FL • Chicago, IL • New York, NY • Houston, TX • Philad
Slide 9: Everest Reinsurance Division - Leading Global Reinsurer
EVEREST REINSURANCE DIVISION - LEADING GLOBAL REINSURER 2018 GWP Geography Everest Reinsurance Ops 2016 2017 2018 51% United States Gross Written Premium $4,246.8 $5,114.7 $6,224.6 21% Europe (incl. UK) 12% Latin America/ Combined Ratio 77.6% 103.1% 113.0% South America 5% Middle East/Africa Attriti
Slide 10: Everest Insurance - A Premier Global Specialty Insurance Operation
EVEREST INSURANCE - A PREMIER GLOBAL SPECIALTY INSURANCE OPERATION 2017 & 2018 GWP Business Mix* 2018 2017 Everest Insurance Ops 2016 2017 2018 Gross Written Premium $1,787.0 $2,059.2 $2,250.6 Combined Ratio 116.5% 104.8% 95.3% Attritional Combined Ratio 99.3% 96.9% 96.5% 13% A&H 27% Specialty Casua
Slide 11: Favorable Accident Year Loss Development
FAVORABLE ACCIDENT YEAR LOSS DEVELOPMENT 10 Year Loss Reserving Experience – Initial to Ultimate 90.8% 100.0% 88.4% 86.4% 81.1% 90.0% 75.9% 75.9% 75.7% 80.0% 73.8% 69.0% 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 2014 2015 2017 2018 MT LOGAN KILIMANJARO RE LTD. KILIMANJARO RE LTD. KILIMANJARO RE LTD. KILIMANJARO RE LTD. (SERIES 2014 -2) (SERIES 2015-1) (SERIES 2017- 1&2) (SERIES 2018-
Slide 13: Active Capital Management Improves Shareholder Value
ACTIVE CAPITAL MANAGEMENT IMPROVES SHAREHOLDER VALUE Book Value Per Share Has Increased 2.1x since 2009 $220.28 $197.45 $204.25 $193.37 $178.21 $166.75 $146.57 12,827 13,451 $130.96 12,441 6,125 11,152 2,900 $115.45 $112.99 10,615 2,825 $102.87 2,900 9,722 1,575 1,575 934 950 869 1,028 1,046 634 7,5
Slide 14: Conservative Leverage and High Liquidity
CONSERVATIVE LEVERAGE AND HIGH LIQUIDITY Figures as of 9/30/19 Capitalization 100% 15.0 One of the Lowest Debt 80% 60% Leverage Ratios 10.0 40% 7.8 7.3 7.5 7.7 7.1 6.5 6.6 20% 0% 5.0 in the Industry 2013 2014 2015 2016 2017 2018 3Q19 4.9% Senior Debt Junior Sub-Debt Long-Term Sub-Notes 5.4% Senior D
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 Hurricane Dori
Slide 16: Significant Total Return to Shareholders
SIGNIFICANT TOTAL RETURN TO SHAREHOLDERS 1,735.7% 800% 706.2% 700% Everest S&P 500 600% 500% 400% 300% 255.8% 242.8% 239.6% 195.3% 207.0% 200% 129.8% 100% 56.1% 50.3% 0% 5 Years 7 Years 10 Years 15 Years Inception to Date Everest Re total return* over S&P 500: 2013-2018 2011-2018 2008-2018 2003-2018
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 47 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