Everest Group, Ltd. · NYSE:EG
Everest — Q3 2023 Earnings Presentation
25 slides from Everest's earnings presentation, Oct 25, 2023
Slide 1: Investor Presentation Third Quarter 2023
Investor Presentation Third Quarter 2023
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
We underwrite opportunity. Everest Strategic Overview
Slide 4: Building on Everest's Strengths to Advance our Strategy
Building on Everest’s Strengths to Advance our Strategy BUILDING ON MARKET LEADERSHIP SCALABLE OPERATIONAL GLOBAL EXCELLENCE FRANCHISES DISCIPLINED FINANCIAL UNDERWRITING STRENGTH SEASONED LEADERSHIP TEAM Everest Re Group, Ltd. 4
Slide 5: World-class leadership team
World-class leadership team Juan C. Andrade Mark Kociancic Jim Williamson Mike Karmilowicz President and EVP, Group Chief EVP, Group COO EVP, President & Chief Executive Financial Officer and Head of Everest CEO of Everest Officer Reinsurance Insurance® Gail Van Beveren Ricardo Anzaldua Mike Mulray
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 PURSUIT OPERATIONAL OF EXCELLENCE WINNING BEHAVIORS OPERATIONAL EXCELLENCE
Slide 7: 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 4th Largest Global P/C Reinsurer1 With Focus on Strategic Market Opportunities and Reduced Volatility REINSURANCE AND INSURANCE GW
Slide 8: Preferred reinsurance partner in local and global markets
Preferred reinsurance partner in local and global markets Recently increased local primary insurance presence in Asia, LatAm & Europe Think globally, trade locally Local strategy in action • Offices across global reinsurance centers – with empowered, respected, and experienced local decision makers
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: Everest Group Quarterly Highlights, Total Shareholder Return and Operating Income
Everest Group Quarterly Highlights, Total Shareholder Return and Operating Income 2023 THIRD QUARTER HIGHLIGHTS TOTAL SHAREHOLDER RETURN Continued momentum from the first half 24.5% of 2023, with strong growth, increased 14.7% underwriting profits, 19.2% operating ROE 5.4% 2021 2022 3Q23 YTD annuali
Slide 12: Everest Reinsurance Division Highlights
Everest Reinsurance Division Highlights 2023 THIRD QUARTER HIGHLIGHTS REINSURANCE HIGHLIGHTS • Gross written premiums grew 32.7% on a GROSS WRITTEN PREMIUM – USD MILLIONS constant dollar basis to $3.2 billion, a new $8,622 $6,696 $6,938 quarterly premium record for the segment, and broad-based growt
Slide 13: Everest Insurance Division Highlights
Everest Insurance® Division Highlights 2023 THIRD QUARTER HIGHLIGHTS INSURANCE HIGHLIGHTS • Gross written premiums rose to $1.2 billion, GROSS WRITTEN PREMIUM – USD MILLIONS a 3.5% increase year over year in constant $3,376 $3,692 $2,924 dollars, driven by a diversified mix of property and specialty
Slide 14: Deployment of $1.5 billion equity raise on schedule
Deployment of $1.5 billion equity raise to capitalize on hard market conditions on schedule Equity Offering Overview Capital Deployment at Superior Returns • Completed successful $1.5 billion public equity offering in May 2023 Capital fully deployed by Jan 1, 2024 Long-term deployment • Expected to
Slide 15: Everest – Quarterly Financial Highlights
Everest – Quarterly Financial Highlights Equity and Capital Resources Investment Income and Cash Flow $11.2 billion in shareholders’ equity Enhanced interest income driven by after $1.5 billion equity offering in May stronger fixed income returns as new 2023, including $1.9 billion of unrealized mon
Slide 16: 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 1 in 100 2019 11.6% Earnings at Risk 2021 9.7% 2020
Slide 17: Everest Segment Summary
We underwrite opportunity. Everest Segment Summary
Slide 18: Growing and Profitable Reinsurance Platform
Growing and Profitable Reinsurance Platform HISTORY OF CONSISTENT GWP GROWTH Leading Reinsurance Platform $ in billions • Leading global P&C reinsurer with a value proposition $9.1 $9.3 $8.6 and relationships to continue to boost our leadership $7.3 position around the globe and maximize our $6.2 $6
Slide 19: Leading Insurance Platform
Leading Insurance Platform Consistent Growth and Improving Results HISTORY OF CONSISTENT & DISCIPLINED GWP GROWTH $ in billions • Armed with the talent, tools and capabilities to deliver $4.6 consistent growth and underwriting results $4.0 $3.7 $3.2 • Global expansion to deliver balanced and diversi
Slide 20: Everest Investment Portfolio
Everest Investment Portfolio INVESTMENT PORTFOLIO GUIDING QUARTERLY AND YEAR TO DATE PRINCIPLES HIGHLIGHTS • Portfolio diversification • High degree of liquidity Dual strategy approach: • Strong credit quality Stable income and total return • Asset/liability duration matching • Optimize risk adjuste
Slide 21: ESG at Everest
ESG at Everest Includes Environmental Responsibility, Diversity, and Social Responsibility Environment & Responsible Investing Diversity, Equity, and Inclusion (“DEI”) Environment Protection: • Educated employees on unconscious bias, inclusion and belonging • We serve market demand for insurance pro
Slide 22: Investing in Everest
Investing in Everest Market Leading Hybrid P&C Franchise Generational Reinsurance Market Opportunity Winning Culture Attracts Talent Global Flight to Quality Strategic Investment Opportunity Focus on Performance Everest Re Group, Ltd. 22
Slide 23: Appendix
We underwrite opportunity. Appendix
Slide 24: Financial Highlights
Financial Highlights Current and Historical For the year ended December 31, ($ in millions, except per share data) 3Q23 3Q23 YTD 2022 2021 2020 2019 2018 BALANCE SHEET Cash and Investments $34,635 $34,635 $29,872 $29,673 $25,462 $20,749 $18,433 Shareholders’ equity $11,226 $11,226 $8,441 $10,139 $ 9
Slide 25: Tracking Total Shareholder Return
Tracking Total Shareholder Return ($ in millions, except per share data) 3Q23 2022 2021 2020 BALANCE SHEET DATA Reported Shareholders' Equity $11,226 $8,441 $10,139 $9,726 Net unrealized gains / (losses) $(1,868) $(1,709) $239 $724 Shareholders Equity excluding URGL $13,094 $10,149 $9,900 $9,002 BOO