Bermuda | 1-15731 | 98-0365432 | ||||||
(State or other jurisdiction | (Commission | (IRS Employer | ||||||
of incorporation) | File Number) | Identification No.) | ||||||
Seon Place – 4th Floor
141 Front Street
PO Box HM 845
Hamilton, Bermuda
|
HM 19 | |||||||
(Address of principal executive offices) | (Zip Code) |
Not Applicable |
Class | Trading Symbol(s) | Name of Exchange where registered | ||||||||||||
Common Shares, $0.01 par value | EG | New York Stock Exchange |
(c) | Exhibits |
||||||||||
Exhibit No. | Description | ||||||||||
99.1 |
News Release of the registrant,
dated April 29, 2024
|
EVEREST GROUP, LTD. | ||||||||
By: | /S/ ROBERT J. FREILING | |||||||
Robert J. Freiling Senior Vice President and Chief Accounting Officer |
||||||||
Dated: April 29, 2024 |
Exhibit Number |
Description of Document |
Page No. |
||||||||||||
5 | ||||||||||||||
104 |
Cover Page Interactive Data File (embedded
within the Inline XBRL document
|
NEWS RELEASE | ![]() |
|||||||
EVEREST GROUP, LTD. | ||||||||
Seon place, 141 Front Street, 4th Floor, Hamilton HM 19, Bermuda |
||||||||
Contacts | ||||||||
Media: Dawn Lauer | Investors: Matt Rohrmann | |||||||
Chief Communications Officer | Head of Investor Relations | |||||||
908.300.7670 | 908.604.7343 |
Net income and operating income | Q1 | Year to Date | Q1 | Year to Date | |||||||||||||||||||
All values in USD millions except for per share amounts and percentages | 2024 | 2024 | 2023 | 2023 | |||||||||||||||||||
Everest Group | |||||||||||||||||||||||
Net income (loss) | 733 | 733 | 365 | 365 | |||||||||||||||||||
Operating income (loss) (1) |
709 | 709 | 443 | 443 | |||||||||||||||||||
Net income (loss) per diluted common share | 16.87 | 16.87 | 9.31 | 9.31 | |||||||||||||||||||
Net operating income (loss) per diluted common share | 16.32 | 16.32 | 11.31 | 11.31 | |||||||||||||||||||
Net income (loss) return on average equity (annualized) | 20.6% | 20.6% | 14.2% | 14.2% | |||||||||||||||||||
After-tax operating income (loss) return on average equity (annualized) | 20.0% | 20.0% | 17.2% | 17.2% |
Shareholders' Equity and Book Value per Share | Q1 | Year to Date | Q1 | Year to Date | |||||||||||||||||||
All values in USD millions except for per share amounts and percentages | 2024 | 2024 | 2023 | 2023 | |||||||||||||||||||
Beginning shareholders' equity | 13,202 | 13,202 | 8,441 | 8,441 | |||||||||||||||||||
Net income (loss) | 733 | 733 | 365 | 365 | |||||||||||||||||||
Change - unrealized gains (losses) - Fixed inc. investments | (153) | (153) | 249 | 249 | |||||||||||||||||||
Dividends to shareholders | (76) | (76) | (65) | (65) | |||||||||||||||||||
Purchase of treasury shares | (35) | (35) | — | — | |||||||||||||||||||
Other | (42) | (42) | 24 | 24 | |||||||||||||||||||
Ending shareholders' equity | 13,628 | 13,628 | 9,014 | 9,014 | |||||||||||||||||||
Common shares outstanding | 43.5 | 39.3 | |||||||||||||||||||||
Book value per common share outstanding | 313.55 | 229.49 | |||||||||||||||||||||
Less: Unrealized appreciation/depreciation of fixed maturity investments ("URAD") | (20.15) | (37.15) | |||||||||||||||||||||
Adjusted book value per common share outstanding excluding URAD | 333.70 | 266.64 | |||||||||||||||||||||
Change in BVPS adjusted for dividends | 3.6% | 7.2% | |||||||||||||||||||||
Total Shareholder Return ("TSR") - Annualized | 18.1% | 14.1% | |||||||||||||||||||||
Common share dividends paid - last 12 months | 6.90 | 6.60 |
Underwriting information - Everest Group | Q1 | Year to Date | Q1 | Year to Date | Year on Year Change | ||||||||||||||||||||||||||||||
All values in USD millions except for percentages | 2024 | 2024 | 2023 | 2023 | Q1 | Year to Date | |||||||||||||||||||||||||||||
Gross written premium | 4,411 | 4,411 | 3,743 | 3,743 | 17.9% | 17.9% | |||||||||||||||||||||||||||||
Net written premium | 3,900 | 3,900 | 3,329 | 3,329 | 17.1% | 17.1% | |||||||||||||||||||||||||||||
Loss Ratio: | |||||||||||||||||||||||||||||||||||
Current year | 58.9% | 58.9% | 59.7% | 59.7% | (0.8) pts | (0.8) pts | |||||||||||||||||||||||||||||
Prior year | —% | —% | —% | —% | — pts | — pts | |||||||||||||||||||||||||||||
Catastrophe | 2.3% | 2.3% | 3.7% | 3.7% | (1.4) pts | (1.4) pts | |||||||||||||||||||||||||||||
Total Loss ratio | 61.3% | 61.3% | 63.4% | 63.4% | (2.1) pts | (2.1) pts | |||||||||||||||||||||||||||||
Commission and brokerage ratio | 21.4% | 21.4% | 21.3% | 21.3% | 0.1 pts | 0.1 pts | |||||||||||||||||||||||||||||
Other underwriting expenses | 6.1% | 6.1% | 6.4% | 6.4% | (0.3) pts | (0.3) pts | |||||||||||||||||||||||||||||
Combined ratio | 88.8% | 88.8% | 91.2% | 91.2% | (2.4) pts | (2.4) pts | |||||||||||||||||||||||||||||
Attritional combined ratio (1) |
86.5% | 86.5% | 87.6% | 87.6% | (1.1) pts | (1.1) pts | |||||||||||||||||||||||||||||
Pre-tax net catastrophe losses (2) |
85 | 85 | 110 | 110 | |||||||||||||||||||||||||||||||
Pre-tax net unfavorable (favorable) prior year reserve development | — | — | — | — |
Underwriting information - Reinsurance segment | Q1 | Year to Date | Q1 | Year to Date | Year on Year Change | ||||||||||||||||||||||||||||||
All values in USD millions except for percentages | 2024 | 2024 | 2023 | 2023 | Q1 | Year to Date | |||||||||||||||||||||||||||||
Gross written premium | 3,175 | 3,175 | 2,620 | 2,620 | 21.2% | 21.2% | |||||||||||||||||||||||||||||
Net written premium | 2,942 | 2,942 | 2,438 | 2,438 | 20.7% | 20.7% | |||||||||||||||||||||||||||||
Loss Ratio: | |||||||||||||||||||||||||||||||||||
Current year | 57.2% | 57.2% | 57.9% | 57.9% | (0.7) pts | (0.7) pts | |||||||||||||||||||||||||||||
Prior year | —% | —% | —% | —% | — pts | — pts | |||||||||||||||||||||||||||||
Catastrophe | 2.9% | 2.9% | 5.1% | 5.1% | (2.2) pts | (2.2) pts | |||||||||||||||||||||||||||||
Total Loss ratio | 60.2% | 60.2% | 63.0% | 63.0% | (2.8) pts | (2.8) pts | |||||||||||||||||||||||||||||
Commission and brokerage ratio | 24.6% | 24.6% | 25.0% | 25.0% | (0.4) pts | (0.4) pts | |||||||||||||||||||||||||||||
Other underwriting expenses | 2.6% | 2.6% | 2.8% | 2.8% | (0.2) pts | (0.2) pts | |||||||||||||||||||||||||||||
Combined ratio | 87.3% | 87.3% | 90.8% | 90.8% | (3.5) pts | (3.5) pts | |||||||||||||||||||||||||||||
Attritional combined ratio (1) |
84.4% | 84.4% | 85.9% | 85.9% | (1.5) pts | (1.5) pts | |||||||||||||||||||||||||||||
Pre-tax net catastrophe losses (2) |
80 | 80 | 108 | 108 | |||||||||||||||||||||||||||||||
Pre-tax net prior year reserve development | — | — | — | — |
Underwriting information - Insurance segment | Q1 | Year to Date | Q1 | Year to Date | Year on Year Change | ||||||||||||||||||||||||||||||
All values in USD millions except for percentages | 2024 | 2024 | 2023 | 2023 | Q1 | Year to Date | |||||||||||||||||||||||||||||
Gross written premium | 1,236 | 1,236 | 1,122 | 1,122 | 10.1% | 10.1% | |||||||||||||||||||||||||||||
Net written premium | 958 | 958 | 891 | 891 | 7.5% | 7.5% | |||||||||||||||||||||||||||||
Loss Ratio: | |||||||||||||||||||||||||||||||||||
Current year | 64.0% | 64.0% | 64.4% | 64.4% | (0.4) pts | (0.4) pts | |||||||||||||||||||||||||||||
Prior year | —% | —% | —% | —% | — pts | — pts | |||||||||||||||||||||||||||||
Catastrophe | 0.5% | 0.5% | 0.2% | 0.2% | 0.3 pts | 0.3 pts | |||||||||||||||||||||||||||||
Total Loss ratio | 64.5% | 64.5% | 64.6% | 64.6% | (0.1) pts | (0.1) pts | |||||||||||||||||||||||||||||
Commission and brokerage ratio | 12.0% | 12.0% | 12.0% | 12.0% | — pts | — pts | |||||||||||||||||||||||||||||
Other underwriting expenses | 16.6% | 16.6% | 15.6% | 15.6% | 1.0 pts | 1.0 pts | |||||||||||||||||||||||||||||
Combined ratio | 93.1% | 93.1% | 92.3% | 92.3% | 0.8 pts | 0.8 pts | |||||||||||||||||||||||||||||
Attritional combined ratio (1) |
92.5% | 92.5% | 92.0% | 92.0% | 0.5 pts | 0.5 pts | |||||||||||||||||||||||||||||
Pre-tax net catastrophe losses (2) |
5 | 5 | 2 | 2 | |||||||||||||||||||||||||||||||
Pre-tax net prior year reserve development | — | — | — | — |
(Dollars in millions, except per share amounts) | Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||
Amount | Per Diluted Share | Amount | Per Diluted Share | Amount | Per Diluted Share | Amount | Per Diluted Share | ||||||||||||||||||||||||||||||||||||||||
After-tax operating income (loss) | $ | 709 | $ | 16.32 | $ | 443 | $ | 11.31 | $ | 709 | $ | 16.32 | $ | 443 | $ | 11.31 | |||||||||||||||||||||||||||||||
After-tax net gains (losses) on investments | (6) | (0.13) | 6 | 0.14 | (6) | (0.13) | 6 | 0.14 | |||||||||||||||||||||||||||||||||||||||
After-tax net foreign exchange income (expense) | 30 | 0.69 | (84) | (2.14) | 30 | 0.69 | (84) | (2.14) | |||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 733 | $ | 16.87 | $ | 365 | $ | 9.31 | $ | 733 | $ | 16.87 | $ | 365 | $ | 9.31 | |||||||||||||||||||||||||||||||
(Some amounts may not reconcile due to rounding.) |
Three Months Ended March 31, |
|||||||||||
(In millions of U.S. dollars, except per share amounts) | 2024 | 2023 | |||||||||
(unaudited) | |||||||||||
REVENUES: | |||||||||||
Premiums earned | $ | 3,652 | $ | 3,100 | |||||||
Net investment income | 457 | 260 | |||||||||
Total net gains (losses) on investments | (7) | 5 | |||||||||
Other income (expense) | 31 | (79) | |||||||||
Total revenues | 4,133 | 3,286 | |||||||||
CLAIMS AND EXPENSES: | |||||||||||
Incurred losses and loss adjustment expenses | 2,237 | 1,966 | |||||||||
Commission, brokerage, taxes and fees | 782 | 661 | |||||||||
Other underwriting expenses | 224 | 200 | |||||||||
Corporate expenses | 22 | 19 | |||||||||
Interest, fees and bond issue cost amortization expense | 37 | 32 | |||||||||
Total claims and expenses | 3,302 | 2,878 | |||||||||
INCOME (LOSS) BEFORE TAXES | 832 | 408 | |||||||||
Income tax expense (benefit) | 99 | 43 | |||||||||
NET INCOME (LOSS) | $ | 733 | $ | 365 | |||||||
Other comprehensive income (loss), net of tax: | |||||||||||
Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period | (158) | 246 | |||||||||
Reclassification adjustment for realized losses (gains) included in net income (loss) | 5 | 3 | |||||||||
Total URA(D) on securities arising during the period | (153) | 249 | |||||||||
Foreign currency translation adjustments | (38) | 31 | |||||||||
Reclassification adjustment for amortization of net (gain) loss included in net income (loss) | — | — | |||||||||
Total benefit plan net gain (loss) for the period | — | — | |||||||||
Total other comprehensive income (loss), net of tax | (191) | 280 | |||||||||
COMPREHENSIVE INCOME (LOSS) | $ | 542 | $ | 645 | |||||||
EARNINGS PER COMMON SHARE: | |||||||||||
Basic | $ | 16.87 | $ | 9.31 | |||||||
Diluted | 16.87 | 9.31 |
March 31, | December 31, | ||||||||||
(In millions of U.S. dollars, except par value per share) | 2024 | 2023 | |||||||||
(unaudited) | |||||||||||
ASSETS: | |||||||||||
Fixed maturities - available for sale, at fair value | |||||||||||
(amortized cost: 2024, $29,311; 2023, $28,568, credit allowances: 2024, $(46); 2023, $(48)) | $ | 28,297 | $ | 27,740 | |||||||
Fixed maturities - held to maturity, at amortized cost | |||||||||||
(fair value: 2024, $842; 2023, $854, net of credit allowances: 2024, $(9); 2023, $(8)) | 840 | 855 | |||||||||
Equity securities, at fair value | 216 | 188 | |||||||||
Other invested assets | 4,854 | 4,794 | |||||||||
Short-term investments | 2,397 | 2,127 | |||||||||
Cash | 1,544 | 1,437 | |||||||||
Total investments and cash | 38,148 | 37,142 | |||||||||
Accrued investment income | 327 | 324 | |||||||||
Premiums receivable (net of credit allowances: 2024, $(43); 2023, $(41)) | 5,101 | 4,768 | |||||||||
Reinsurance paid loss recoverables (net of credit allowances: 2024, $(27); 2023, $(26)) | 233 | 164 | |||||||||
Reinsurance unpaid loss recoverables | 2,084 | 2,098 | |||||||||
Funds held by reinsureds | 1,155 | 1,135 | |||||||||
Deferred acquisition costs | 1,331 | 1,247 | |||||||||
Prepaid reinsurance premiums | 702 | 713 | |||||||||
Income tax asset, net | 823 | 868 | |||||||||
Other assets (net of credit allowances: 2024, $(10); 2023, $(9)) | 1,033 | 941 | |||||||||
TOTAL ASSETS | $ | 50,937 | $ | 49,399 | |||||||
LIABILITIES: | |||||||||||
Reserve for losses and loss adjustment expenses | 25,211 | 24,604 | |||||||||
Unearned premium reserve | 6,826 | 6,622 | |||||||||
Funds held under reinsurance treaties | 11 | 24 | |||||||||
Amounts due to reinsurers | 716 | 650 | |||||||||
Losses in course of payment | 168 | 171 | |||||||||
Senior notes | 2,349 | 2,349 | |||||||||
Long-term notes | 218 | 218 | |||||||||
Borrowings from FHLB | 819 | 819 | |||||||||
Accrued interest on debt and borrowings | 43 | 22 | |||||||||
Unsettled securities payable | 403 | 137 | |||||||||
Other liabilities | 543 | 582 | |||||||||
Total liabilities | 37,308 | 36,197 | |||||||||
SHAREHOLDERS' EQUITY: | |||||||||||
Preferred shares, par value: $0.01; 50.0 shares authorized; no shares issued and outstanding | — | — | |||||||||
Common shares, par value: $0.01; 200.0 shares authorized; (2024) 74.3 and (2023) 74.2 | |||||||||||
outstanding before treasury shares | 1 | 1 | |||||||||
Additional paid-in capital | 3,768 | 3,773 | |||||||||
Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) | |||||||||||
of $(137) at 2024 and $(99) at 2023 | (1,125) | (934) | |||||||||
Treasury shares, at cost; 30.9 shares (2024) and 30.8 shares (2023) | (3,943) | (3,908) | |||||||||
Retained earnings | 14,927 | 14,270 | |||||||||
Total shareholders' equity | 13,628 | 13,202 | |||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 50,937 | $ | 49,399 | |||||||
Three Months Ended March 31, |
|||||||||||
(In millions of U.S. dollars) | 2024 | 2023 | |||||||||
(unaudited) | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income (loss) | $ | 733 | $ | 365 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Decrease (increase) in premiums receivable | (370) | (259) | |||||||||
Decrease (increase) in funds held by reinsureds, net | (33) | (17) | |||||||||
Decrease (increase) in reinsurance recoverables | (129) | 7 | |||||||||
Decrease (increase) in income taxes | 82 | 41 | |||||||||
Decrease (increase) in prepaid reinsurance premiums | (14) | 28 | |||||||||
Increase (decrease) in reserve for losses and loss adjustment expenses | 720 | 681 | |||||||||
Increase (decrease) in unearned premiums | 242 | 226 | |||||||||
Increase (decrease) in amounts due to reinsurers | 95 | 17 | |||||||||
Increase (decrease) in losses in course of payment | — | 47 | |||||||||
Change in equity adjustments in limited partnerships | (59) | (5) | |||||||||
Distribution of limited partnership income | 31 | 48 | |||||||||
Change in other assets and liabilities, net | (188) | (121) | |||||||||
Non-cash compensation expense | 16 | 12 | |||||||||
Amortization of bond premium (accrual of bond discount) | (30) | (1) | |||||||||
Net (gains) losses on investments | 7 | (5) | |||||||||
Net cash provided by (used in) operating activities | 1,102 | 1,064 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Proceeds from fixed maturities matured/called/repaid - available for sale | 736 | 562 | |||||||||
Proceeds from fixed maturities sold - available for sale | 407 | 72 | |||||||||
Proceeds from fixed maturities matured/called/repaid - held to maturity | 45 | 28 | |||||||||
Proceeds from equity securities sold | — | 46 | |||||||||
Distributions from other invested assets | 100 | 137 | |||||||||
Cost of fixed maturities acquired - available for sale | (1,971) | (1,613) | |||||||||
Cost of fixed maturities acquired - held to maturity | (27) | (11) | |||||||||
Cost of equity securities acquired | (33) | (1) | |||||||||
Cost of other invested assets acquired | (138) | (242) | |||||||||
Net change in short-term investments | (252) | 4 | |||||||||
Net change in unsettled securities transactions | 284 | 267 | |||||||||
Net cash provided by (used in) investing activities | (849) | (752) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Common shares issued (redeemed) during the period for share-based compensation, net of expense | (21) | (19) | |||||||||
Purchase of treasury shares | (35) | — | |||||||||
Dividends paid to shareholders | (76) | (65) | |||||||||
Cost of shares withheld on settlements of share-based compensation awards | (21) | (19) | |||||||||
Net cash provided by (used in) financing activities | (153) | (103) | |||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 7 | 3 | |||||||||
Net increase (decrease) in cash | 107 | 212 | |||||||||
Cash, beginning of period | 1,437 | 1,398 | |||||||||
Cash, end of period | $ | 1,544 | $ | 1,610 | |||||||
SUPPLEMENTAL CASH FLOW INFORMATION: | |||||||||||
Income taxes paid (recovered) | $ | 16 | $ | 2 | |||||||
Interest paid | 16 | 10 | |||||||||