Everest Group, Ltd. · NYSE:EG
Everest — Q1 2022 Earnings Presentation
25 slides from Everest's earnings presentation, Apr 28, 2022
Slide 1: Investor Presentation First Quarter 2022
Investor Presentation First 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: Everest – A Leading Global Platform for Reinsurance and Insurance
Everest – A Leading Global Platform for Reinsurance and Insurance REINSURANCE AND INSURANCE GWP $13.1 $10.5 $9.1 $4.0 $8.5 $7.2 $3.2 $2.3 $2.8 $2.1 $9.1 $6.2 $6.4 $7.3 $5.1 2017 2018 2019 2020 2021 Reinsurance Insurance BROADLY DIVERSIFIED EARNINGS POWER The 7th Largest Global P/C Reinsurer Leading
Slide 5: Forging a New Path Forward – Strategic Plan Highlights
Forging a New Path Forward – Strategic Plan Highlights BUILDING ON STRENGTH OPERATIONAL SCALABLE EXCELLENCE GLOBAL FRANCHISES DISCIPLINED FINANCIAL UNDERWRITING POWER SEASONED LEADERSHIP TEAM 5
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 OPERATIONAL WINNING BEHAVIORS CONTINUOUS PURSUIT OF EXCELLENCE WINNING BEHAVIORS OPERATIONAL EXCELLENCE
Slide 7: 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 8: Quarterly and Annual Results Summary
Quarterly and Annual Results Summary
Slide 9: Everest Group Quarterly Highlights, Total Shareholder Return and Net Income
Everest Group Quarterly Highlights, Total Shareholder Return and Net Income 2022 FIRST QUARTER HIGHLIGHTS TOTAL SHAREHOLDER RETURN Gross written premium of 14.7% $3.2 billion, 9% growth 6.9% 8.6% year over year 2020 2021 1Q22 annualized 91.6% combined ratio and • Our primary metric for measuring fin
Slide 10: Everest Insurance Division Quarterly Highlights
Everest Insurance® Division Quarterly Highlights 2022 FIRST QUARTER HIGHLIGHTS QUARTERLY HIGHLIGHTS • Gross written premiums of $1.0 billion reflecting a GROSS WRITTEN PREMIUM – USD MILLIONS 15% increase year over year, driven by balanced and $793 $872 $1,001 diversified growth across core classes a
Slide 11: Everest Reinsurance Division Quarterly Highlights
Everest Reinsurance Division Quarterly Highlights 2022 FIRST QUARTER HIGHLIGHTS QUARTERLY HIGHLIGHTS • Gross written premiums of $2.2 billion for the GROSS WRITTEN PREMIUM – USD MILLIONS quarter including a highly successful January 1 renewal where Everest achieved growth in targeted $1,778 $2,059 $
Slide 12: Everest – Quarterly Financial Highlights
Everest – Quarterly Financial Highlights Equity and Capital Resources Investment Income and Cash Flow $9.5 billion in $243 million in net investment shareholders’ equity including income, well balanced between $571 million in unrealized losses fixed income and alternatives on the fixed maturity port
Slide 13: Transforming Everest's Risk Profile: Earnings at Risk
Transforming Everest’s Risk Profile Improved risk adjusted returns and reduced exposure to natural catastrophe events Risk Profile Managed to Superior • Tail risk for peak zones has Risk / Reward Economics been meaningfully reduced since 2017 2017 • Note that 2022 is based on projected PML as of Dec
Slide 14: Everest Operating Divisions
Everest Operating Divisions
Slide 15: Everest Insurance: Leading Insurance Platform
Everest Insurance® Leading Insurance Platform BUILT FROM THE GROUND UP – HISTORY OF GWP GROWTH Commercial P&C Insurer $ in billions $4.0 $3.2 • Seasoned leadership team delivering on $2.8 exceptional growth while reducing attritional $2.3 $2.1 combined ratios through effective portfolio management •
Slide 16: Everest Insurance - Scale Creates Margin Opportunity
Everest Insurance - Scale Creates Margin Opportunity Operating leverage Effective portfolio management Low 90s Combined Focused investment in technology Ratio Target Skilled cycle management 16
Slide 17: 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 $7.3 • Leading global P&C reinsurer $6.2 $6.4 $5.1 • Agile and scalable platform to pursue attractive opportunities • Broadly diversified around the wor
Slide 18: Local Leaders Drive Superior Execution
Local Leaders Drive Superior Execution Think Globally, Trade Locally LOCAL STRATEGY IN ACTION • Offices in all key global reinsurance centers – local decision makers empowered to transact • Ceding clients in 115 countries • Dynamically allocating capital across markets Note: countries with an Everes
Slide 19: Everest Reinsurance: Drivers to Enhance Underwriting Profit
Everest Reinsurance Drivers to Enhance Underwriting Profit Ongoing Portfolio Management Focus on Accretive Growth Low 90s Nimble UW Cycle Management Combined Ratio Target Sustain Volatility Management Best-in-Class Expense Ratio 19
Slide 20: Investment Portfolio Guiding Principles
Investment Portfolio Guiding Principles 1 ENGINES OF EARNINGS POWER Portfolio Diversification 2 High Degree of Liquidity 3 Strong Credit Quality 4 Match Asset / Liability Duration 5 Dual Strategy Approach: Stable Income and Total Return 6 Optimize Risk-Adjusted Return and Capital Efficiency 20
Slide 21: Conclusion - Investing In Everest
Conclusion - Investing In Everest Everest is a growing leading global reinsurance and insurance franchise Seasoned leadership team in place forging a new path forward Broadly diversified earnings power: Reinsurance, Insurance and Investments Franchises are well positioned to drive growth and expand
Slide 22: Appendix
Appendix
Slide 23: Notes and Definitions
Notes and Definitions Reference Information Current ESG Rankings NYSE: RE Environmental: 6 * Social: 5 BB Governance: 4 FINANCIAL A+ A+ A1 Low Risk STRENGTH A.M. Best S&P Global Moody’s Investors 46th percentile #37 of 296¹ RATINGS Service insurers ranked STABLE OUTLOOK * AS of March 2022. Score of
Slide 24: Financial Highlights: Current and Historical
Financial Highlights Current and Historical For the year ended December 31, ($ in millions, except per share data) 1Q22 2021 2020 2019 2018 2017 BALANCE SHEET Cash and Investments $29,298 $29,673 $25,462 $20,749 $18,433 $18,627 Shareholders’ equity $9,528 $10,139 $ 9,726 $9,133 $7,861 $ 8,341 Book v
Slide 25: Tracking Total Shareholder Return
Tracking Total Shareholder Return In USD millions except share and per share amounts 1Q22 2021 2020 2019 Reported Shareholders' Equity 9,528 10,139 9,726 9,133 Net unrealized gains / (losses) (572) 239 724 304 Shareholders Equity excluding unrealized gains 10,099 9,900 9,002 8,829 Reported BVPS 241.