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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

Current Report Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)
October 30, 2024


Everest Group, Ltd.

(Exact name of registrant as specified in its charter)

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)

Registrant’s telephone number, including area code 441-295-0006


Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Class Trading Symbol(s) Name of Exchange where registered
Common Shares, $0.01 par value EG New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 12(a) of the Exchange Act. ☐


ITEM 2.02    DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On October 30, 2024, Everest Group, Ltd. (the "Registrant") issued a news release announcing its third quarter 2024 results. A copy of that news release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
In accordance with general instruction B.2 of Form 8-K, the information in this report, including exhibits, is furnished pursuant to Item 2.02 and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section.
ITEM 9.01    FINANCIAL STATEMENTS AND EXHIBITS
(c)
Exhibits
Exhibit No. Description
99.1
News Release of the Registrant, dated October 30, 2024


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
EVEREST GROUP, LTD.
By: /S/ ROBERT J. FREILING
Robert J. Freiling
Senior Vice President and
Chief Accounting Officer
Dated: October 30, 2024


EXHIBIT INDEX
Exhibit
Number
Description of Document
Page No.
5
104
Cover Page Interactive Data File (embedded
within the Inline XBRL document

EX-99.1 2 earningsrelease-exx991q320.htm EX-99.1 Document

NEWS RELEASE
everestlogo7102023croppeda.jpg
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

Everest Reports Third Quarter 2024 Results
Net Income of $509 million and Net Operating Income of $630 million
Total Shareholder Return1 of 19.4%
Annualized YTD 17.8% Net Income ROE and 18.7% Net Operating Income ROE
HAMILTON, Bermuda – (BUSINESS WIRE) – October 30, 2024 – Everest Group, Ltd. (NYSE: EG), a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions, today reported its third quarter 2024 results.

Third Quarter 2024 Highlights
•Total Shareholder Return of 19.4% annualized; Annualized year-to-date 17.8% Net Income ROE and 18.7% Net Operating Income ROE
•Net Income of $509 million; Net Operating Income of $630 million driven by attritional underwriting margin improvement and solid net investment income generation
•$4.4 billion in gross written premium with year-over-year growth of 0.6% for the Group, 1.7% for Reinsurance, and -2.1% for Insurance on a comparable basis; Strong double-digit growth in property and specialty lines across both segments was partially offset by reductions in certain casualty lines
•Combined ratios of 93.1% for the Group, 91.8% for Reinsurance and 97.1% for Insurance
•Attritional combined ratios of 85.8% for the Group, 83.5% for Reinsurance and 92.6% for Insurance
•Pre-tax underwriting income of $272 million for the Group, $245 million for Reinsurance, and $27 million for Insurance
•$279 million of pre-tax catastrophe losses net of recoveries and reinstatement premiums versus $170 million in Q3 2023
•Net investment income improved to $496 million versus $406 million in the prior year third quarter, driven by a larger asset base as well as strong core fixed income investment returns
•Strong operating cashflow for the quarter of $1.7 billion versus $1.4 billion in the third quarter 2023


(1) Denotes annualized figure; represents Total Shareholder Return or "TSR". Annualized TSR is calculated as year to date growth in book value per common share outstanding excluding URA(D) on fixed maturity, available for sale securities plus year-to-date dividends per share.

1


“Everest delivered another successful quarter with strong operating income driven by solid underwriting results and healthy investment income. These results reflect our underwriting discipline and prudent risk management, which position the Company to generate leading returns despite another above-average catastrophe year for the industry. We are delivering an annualized total shareholder return and operating return on equity of approximately 19%,” said Juan C. Andrade, Everest President and CEO. “As a lead reinsurance market, we grew in attractive lines of business with the highest expected returns. We are leveraging our franchise value in the continuing favorable property market conditions heading into the January 1 renewals. Additionally, we continued to shape our global primary insurance portfolio by growing strong double-digits in more attractive property and specialty lines, while remaining conservative across certain casualty lines in North America. As we approach the final stretch of the year, we remain focused on executing our strategy.”


Summary of Third Quarter 2024 Net Income and Other Items
•Net income of $509 million, equal to $11.80 per diluted share versus third quarter 2023 net income of $678 million, equal to $15.63 per diluted share
•Net operating income of $630 million, equal to $14.62 per diluted share versus third quarter 2023 net operating income of $613 million, equal to $14.14 per diluted share
•GAAP combined ratio of 93.1%, including 7.9 points of catastrophe losses, versus 91.4% in the third quarter 2023, including 5.0 points of catastrophe losses; Everest continues to successfully manage volatility against the backdrop of another year of above-average industry catastrophes

Hurricane Milton
•Pre-tax net catastrophe loss estimated to be in the range of $300 to $400 million for the fourth quarter 2024, net of estimated recoveries and reinstatement premiums
•Everest's loss estimate is based on an insured industry loss range of $25 to $35 billion

The following table summarizes the Company’s Net Income and related financial metrics.
Net income and operating income Q3 Year to Date Q3 Year to Date
All values in USD millions except for per share amounts and percentages 2024 2024 2023 2023
Everest Group
Net income (loss) 509 1,966 678 1,713
Net operating income (loss) (2)
 630 2,070 613 1,684
Net income (loss) per diluted common share 11.80 45.40 15.63 41.49
Net operating income (loss) per diluted common share (2)
 14.62 47.79 14.14 40.77
Net income (loss) return on average equity (annualized) 13.3% 17.8% 21.2% 19.7%
After-tax net operating income (loss) return on average equity (annualized) (2)
 16.4% 18.7% 19.2% 19.3%
Notes
(2) Denotes non-GAAP financial measure. See "Comments on Non-GAAP Financial Measures" for an explanation and reconciliation.
2

Shareholders' Equity and Book Value per Share Q3 Year to Date Q3 Year to Date
All values in USD millions except for per share amounts and percentages 2024 2024 2023 2023
Beginning shareholders' equity 14,182 13,202 10,902 8,441
Net income (loss) 509 1,966 678 1,713
Change - URA(D) of fixed maturity, available for sale securities 716 503 (242) (159)
Dividends to shareholders (86) (249) (76) (212)
Purchase of treasury shares (100) (200) — —
Public equity offering of shares — — — 1,445
Other 114 113 (37) (1)
Ending shareholders' equity 15,335 15,335 11,226 11,226
Common shares outstanding 43.0 43.4
Book value per common share outstanding 356.77 258.71
Less: URA(D) of fixed maturity, available for sale securities (5.11) (43.06)
Book value per common share outstanding excluding URA(D) (3)
 361.87 301.76
Change in BVPS adjusted for dividends 19.1% 22.4%
Total Shareholder Return ("TSR") - Annualized 19.4% 24.5%
Common share dividends paid - last 12 months 7.50 6.70
Notes
(3) Denotes non-GAAP financial measure. A reconciliation to book value per share, the most comparable GAAP measure, is included in the table above. See "Comments on Non-GAAP Financial Measures" for additional information.


3

The following information summarizes the Company’s underwriting results, on a consolidated basis and by segment – Reinsurance and Insurance, with selected commentary on results by segment.
Underwriting information - Everest Group Q3 Year to Date Q3 Year to Date Year on Year Change
All values in USD millions except for percentages 2024 2024 2023 2023 Q3 Year to Date
Gross written premium 4,425 13,561 4,391 12,314 0.8% 10.1%
Net written premium 3,805 11,789 3,866 10,870 (1.6)% 8.5%
Loss Ratio:
Current year 58.0% 58.5% 58.9% 59.4% (0.9) pts (0.9) pts
Prior year —% —% —% —% — pts — pts
Catastrophe 7.9% 4.9% 5.0% 3.2% 2.9 pts 1.6 pts
Total Loss ratio 66.0% 63.3% 63.9% 62.6% 2.0 pts 0.7 pts
Commission and brokerage ratio 21.1% 21.3% 21.4% 21.3% (0.3) pts — pts
Other underwriting expenses 6.0% 6.2% 6.1% 6.3% (0.1) pts (0.1) pts
Combined ratio 93.1% 90.8% 91.4% 90.1% 1.6 pts 0.6 pts
Attritional combined ratio (4)
 85.8% 86.3% 86.6% 87.0% (0.8) pts (0.7) pts
Pre-tax net catastrophe losses (5)
 279 499 170 307
Pre-tax net unfavorable (favorable) prior year reserve development — — — —
Notes
(4) Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, prior year development, COVID-19 losses and losses from the Russia/Ukraine war. Attritional combined ratio is a non-GAAP financial measure. See "Comments on Non-GAAP Financial Measures" for an explanation and reconciliation.
(5) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums.


4

Reinsurance Segment – Quarterly Highlights
•Gross written premiums grew 1.7% on a comparable basis (constant dollar basis and excluding reinstatement premiums)2, to approximately $3.3 billion. We continue to execute with precision, leveraging our market leading franchise to drive growth in lines with the best expected risk-adjusted returns.
•Growth was led by a 19.2% increase in Property Pro-Rata and 9.3% in Property Catastrophe XOL, partially offset by a 7.2% decrease in Casualty Pro-Rata, a 5.9% decrease in Casualty XOL, and a 28.6% decrease in Financial Lines, when adjusting for reinstatement premiums.
•Attritional loss ratio improved 60 basis points over last year to 56.9%, while the attritional combined ratio improved 140 basis points to 83.5% versus a year ago4.
•Pre-tax catastrophe losses were $239 million net of estimated recoveries and reinstatement premiums, driven primarily by several Atlantic hurricanes and other international weather-related events. Hurricane Helene accounted for $63 million of catastrophe losses, net of estimated recoveries and reinstatement premiums, in the quarter.
•Risk-adjusted returns remain excellent, particularly in property and specialty lines.
Underwriting information - Reinsurance segment Q3 Year to Date Q3 Year to Date Year on Year Change
All values in USD millions except for percentages 2024 2024 2023 2023 Q3 Year to Date
Gross written premium 3,265 9,650 3,198 8,566 2.1% 12.7%
Net written premium 2,975 8,950 2,989 8,048 (0.5)% 11.2%
Loss Ratio:
Current year 56.3% 56.7% 57.4% 57.6% (1.1) pts (0.9) pts
Prior year —% —% —% —% — pts — pts
Catastrophe 9.1% 5.8% 6.4% 4.2% 2.7 pts 1.5 pts
Total Loss ratio 65.4% 62.5% 63.8% 61.9% 1.6 pts 0.6 pts
Commission and brokerage ratio 23.9% 24.4% 24.8% 24.8% (0.9) pts (0.4) pts
Other underwriting expenses 2.5% 2.6% 2.5% 2.6% — pts — pts
Combined ratio 91.8% 89.4% 91.1% 89.2% 0.7 pts 0.2 pts
Attritional combined ratio (4)
 83.5% 84.1% 84.9% 85.1% (1.4) pts (1.0) pts
Pre-tax net catastrophe losses (5)
 239 439 160 295
Pre-tax net prior year reserve development — — — —
Notes
(2) Denotes non-GAAP financial measure. See "Comments on Non-GAAP Financial Measures" for an explanation and reconciliation.
(4) Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, prior year development, COVID-19 losses and losses from the Russia/Ukraine war. Attritional combined ratio is a non-GAAP financial measure. See "Comments on Non-GAAP Financial Measures" for an explanation and reconciliation.
(5) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums.

5

Insurance Segment – Quarterly Highlights
•Gross written premiums decreased to $1.2 billion on a comparable basis (constant dollar basis and excluding reinstatement premiums)2, a 2.1% decrease year-over-year as we continued to strategically shape the portfolio. Our International business continued its strong growth trajectory as it gained further traction.
•Everest Insurance grew by 21.0% in Property/Short Tail and 17.7% in Other Specialty lines. Growth was offset by a decrease of 27.6% in Accident and Health, as we exit the medical stop loss business, and 10.3% in Specialty Casualty, primarily in North America, reflecting our focus on lines of business with better expected margins.
•Pre-tax catastrophe losses were $40 million, net of estimated recoveries and reinstatement premiums, an increase over the prior year quarter, which benefited from benign catastrophe losses.
•Pricing continues to exceed loss trend in the aggregate and there was a meaningful acceleration in pricing across North American long-tail lines (excluding financial lines).
Underwriting information - Insurance segment Q3 Year to Date Q3 Year to Date Year on Year Change
All values in USD millions except for percentages 2024 2024 2023 2023 Q3 Year to Date
Gross written premium 1,160 3,911 1,193 3,748 (2.8)% 4.3%
Net written premium 830 2,839 878 2,822 (5.4)% 0.6%
Loss Ratio:
Current year 63.5% 63.7% 63.3% 64.0% 0.2 pts (0.3) pts
Prior year —% —% —% —% — pts — pts
Catastrophe 4.2% 2.1% 1.1% 0.4% 3.1 pts 1.7 pts
Total Loss ratio 67.8% 65.8% 64.4% 64.5% 3.4 pts 1.4 pts
Commission and brokerage ratio 12.2% 12.1% 11.8% 11.9% 0.4 pts 0.2 pts
Other underwriting expenses 17.2% 16.9% 16.4% 16.1% 0.8 pts 0.8 pts
Combined ratio 97.1% 94.9% 92.5% 92.5% 4.6 pts 2.4 pts
Attritional combined ratio (4)
 92.6% 92.6% 91.4% 92.0% 1.2 pts 0.6 pts
Pre-tax net catastrophe losses (5)
 40 60 10 12
Pre-tax net prior year reserve development — — — —
Notes
(2) Denotes non-GAAP financial measure. See "Comments on Non-GAAP Financial Measures" for an explanation and reconciliation.
(4) Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, prior year development, COVID-19 losses and losses from the Russia/Ukraine war. Attritional combined ratio is a non-GAAP financial measure. See "Comments on Non-GAAP Financial Measures" for an explanation and reconciliation.
(5) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums.


6

Investments and Shareholders’ Equity as of September 30, 2024
•Total invested assets and cash of $42.1 billion versus $37.1 billion on December 31, 2023
•Shareholders’ equity of $15.3 billion vs. $13.2 billion on December 31, 2023, including $220 million of unrealized net losses on fixed maturity, available for sale securities
•Shareholders’ equity excluding unrealized gains (losses) on fixed maturity, available for sale securities of $15.6 billion versus $13.9 billion on December 31, 2023
•Book value per share of $356.77 versus $304.29 at December 31, 2023
•Book value per share excluding unrealized gains (losses) on fixed maturity, available for sale securities of $361.87 versus $320.95 at December 31, 2023
•Common share repurchases of $100.0 million during the quarter, representing 272,460 shares at an average price of $367.03 per share. We have now repurchased $199.9 million year-to-date.
•Common share dividends declared and paid in the quarter of $2.00 per common share equal to $86 million

This news release 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 securities laws. These statements reflect management’s current expectations based on assumptions we believe are reasonable but are not guarantees of performance. Actual results may differ materially from those contained in forward-looking statements made on behalf of the Company. The forward-looking statements involve risks and uncertainties that include, but are not limited to, the impact of general economic conditions and conditions affecting the insurance and reinsurance industry, the adequacy of our reserves, our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, investment market and investment income fluctuations, trends in insured and paid losses, catastrophes, pandemics, regulatory and legal uncertainties and other factors described in our SEC filings, including our latest Annual Report on Form 10-K. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Everest
Everest Group, Ltd. (Everest) is a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions that address customers’ most pressing challenges. Known for a 50-year track record of disciplined underwriting, capital and risk management, Everest, through its global operating affiliates, is committed to underwriting opportunity for colleagues, customers, shareholders, and communities worldwide.

Everest common stock (NYSE: EG) is a component of the S&P 500 index.

Additional information about Everest, our people, and our products can be found on our website at www.everestglobal.com.

A conference call discussing the results will be held at 8:00 a.m. Eastern Time on October 31, 2024. The call will be available on the Internet through the Company’s website at https://investors.everestglobal.com/overview.

Recipients are encouraged to visit the Company’s website to view supplemental financial information on the Company’s results. The supplemental information is located at www.everestglobal.com in the “Investors/Financials/Quarterly Results” section of the website. The supplemental financial information may also be obtained by contacting the Company directly.

7

_______________________________________________
Comments on Non-GAAP Financial Measures
In this Press Release, the Company has included certain non-GAAP financial measures, including after-tax net operating income (loss), after-tax net operating income (loss) per diluted share, attritional combined ratio, gross written premiums presented on a comparable basis, net operating income return on equity ("ROE"), underwriting income, and book value per common share outstanding excluding net unrealized appreciation (depreciation) on fixed maturity, available for sale securities ("URA(D)"). The Company presents these non-GAAP financial measures to facilitate a deeper understanding of the profitability drivers of our business, results of operations, financial condition and liquidity. The Company believes that such measures are important to investors and other interested persons, and that these measures are a useful supplement to GAAP information concerning the Company’s performance. These measures may not, however, be comparable to similarly titled measures used by companies within or outside of the insurance industry. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, or superior to, the Company’s financial measures prepared in accordance with generally accepted accounting principles ("GAAP").
A reconciliation non-GAAP financial measures to the most comparable corresponding GAAP financial measure is included below.
After-tax net operating income (loss) and after-tax net operating income (loss) per diluted share
After-tax net operating income (loss) (also referred to in this release as net operating income) consists of net income (loss) excluding after-tax net gains (losses) on investments and after-tax net foreign exchange income (expense), as shown below:
(Dollars in millions, except per share amounts) Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
(unaudited) (unaudited)
Amount Per Diluted Share Amount Per Diluted Share Amount Per Diluted Share Amount Per Diluted Share
After-tax net operating income (loss) $ 630  $ 14.62  $ 613  $ 14.14  $ 2,070  $ 47.79  $ 1,684  $ 40.77 
After-tax net gains (losses) on investments (25) (0.57) (27) (0.61) (44) (1.02) (17) (0.40)
After-tax net foreign exchange income (expense) (97) (2.24) 91  2.10  (60) (1.38) 46  1.12 
Net income (loss) $ 509  $ 11.80  $ 678  $ 15.63  $ 1,966  $ 45.40  $ 1,713  $ 41.49 
(Some amounts may not reconcile due to rounding.)
Although net gains (losses) on investments and net foreign exchange income (expense) are an integral part of the Company’s insurance operations, the determination of net gains (losses) on investments and foreign exchange income (expense) is independent of the insurance underwriting process. The Company believes that the level of net gains (losses) on investments and net foreign exchange income (expense) for any particular period are not indicative of the performance of the underlying business in that particular period. Providing only a GAAP presentation of net income (loss) makes it more difficult for users of the financial information to evaluate the Company’s success or failure in its basic business and may lead to incorrect or misleading assumptions and conclusions. The Company understands that the equity analysts who follow the Company focus on after-tax net operating income (loss) in their analyses for the reasons discussed above.
8

The Company provides after-tax net operating income (loss) to investors so that they have what management believes to be a useful supplement to GAAP information concerning the Company’s performance.
Attritional Loss Ratio and Attritional Combined Ratio
The loss ratio is calculated as the sum of total incurred losses and loss adjustment expenses, divided by net premiums earned. The combined ratio is calculated as the sum of total incurred losses and loss adjustment expenses, commission and brokerage expenses, and other underwriting expenses, divided by net premiums earned. The attritional loss ratio and attritional combined ratio are defined as the loss ratio and the combined ratio, respectively, adjusted to exclude catastrophe losses, net catastrophe reinstatement premiums, prior year development, COVID-19 losses and losses from the Russia/Ukraine war. The Company believes the attritional ratios are useful to management and investors because the adjusted ratios provide for better comparability and more accurately measure the Company’s underlying underwriting performance. The following tables are a reconciliation of the loss ratio and attritional loss ratio, and the combined ratio and attritional combined ratio for the periods noted:
Three Months Ended September 30,
2024 2023
(unaudited)
Reinsurance Insurance Group Reinsurance Insurance Group
Loss ratio 65.4  % 67.8  % 66.0  % 63.8  % 64.4  % 63.9  %
Adjustment for catastrophe losses (9.1) % (4.2) % (7.9) % (6.4) % (1.1) % (5.0) %
Adjustment for reinstatement premiums 0.6  % —  % 0.5  % 0.1  % —  % 0.1  %
Adjustment for prior year development (6)
 —  % —  % —  % —  % —  % —  %
Adjustment for Russia/Ukraine war losses —  % —  % —  % —  % —  % —  %
Adjustment for other items —  % (0.2) % (0.1) % —  % —  % —  %
Attritional loss ratio 56.9  % 63.3  % 58.5  % 57.5  % 63.3  % 59.0  %
(Some amounts may not reconcile due to rounding.)
Three Months Ended September 30,
2024 2023
(unaudited)
Reinsurance Insurance Group Reinsurance Insurance Group
Combined ratio 91.8  % 97.1  % 93.1  % 91.1  % 92.5  % 91.4  %
Adjustment for catastrophe losses (9.1) % (4.2) % (7.9) % (6.4) % (1.1) % (5.0) %
Adjustment for reinstatement premiums 0.9  % —  % 0.7  % 0.2  % —  % 0.1  %
Adjustment for prior year development (6)
 —  % —  % —  % —  % —  % —  %
Adjustment for Russia/Ukraine war losses —  % —  % —  % —  % —  % —  %
Adjustment for other items —  % (0.3) % (0.1) % —  % —  % —  %
Attritional combined ratio 83.5  % 92.6  % 85.8  % 84.9  % 91.4  % 86.6  %
(Some amounts may not reconcile due to rounding.)
9

Nine Months Ended September 30,
2024 2023
(unaudited)
Reinsurance Insurance Group Reinsurance Insurance Group
Combined ratio 89.4  % 94.9  % 90.8  % 89.2  % 92.5  % 90.1  %
Adjustment for catastrophe losses (5.8) % (2.1) % (4.9) % (4.2) % (0.4) % (3.2) %
Adjustment for reinstatement premiums 0.5  % —  % 0.4  % 0.1  % —  % 0.1  %
Adjustment for prior year development (6)
 —  % —  % —  % —  % —  % —  %
Adjustment for Russia/Ukraine war losses —  % —  % —  % —  % —  % —  %
Adjustment for other items —  % (0.1) % —  % —  % —  % —  %
Attritional combined ratio 84.1  % 92.6  % 86.3  % 85.1  % 92.0  % 87.0  %
(Some amounts may not reconcile due to rounding.)
Notes
(6) Prior-year development includes the impact of COVID-19 losses.
Gross Written Premium on a Comparable Basis
The Company has included in this Press Release certain changes in gross written premium on a comparable basis, reflecting constant currency basis and excluding reinstatement premiums. Constant currency basis excludes the impact of foreign exchange rates. The Company provides change in gross written premium on a comparable basis to investors so that they have what management believes to be a useful supplement to GAAP information concerning the Company’s performance. The following tables are a reconciliation of gross written premium and period-over-period changes on a GAAP basis to the non-GAAP comparable basis for the periods noted:
(Dollars in millions) Quarter-to-Date
September 30, 2024 September 30, 2023 Change
(unaudited)
Gross Written Premium Gross Written Premium % Impact
Group $ 4,425  $ 4,391  0.8  %
Adjustment for gross CAT reinstatement premiums (33) (6) (0.6) %
Adjustment for foreign exchange effect —  (21) 0.5  %
Group (comparable basis) $ 4,392  $ 4,365  0.6  %
Reinsurance $ 3,265  $ 3,198  2.1  %
Adjustment for gross CAT reinstatement premiums (33) (6) (0.8) %
Adjustment for foreign exchange effect —  (13) 0.4  %
Reinsurance (comparable basis) $ 3,232  $ 3,180  1.7  %
Insurance $ 1,160  $ 1,193  (2.8) %
Adjustment for gross CAT reinstatement premiums —  —  —  %
Adjustment for foreign exchange effect —  (8) 0.7  %
Insurance (comparable basis) $ 1,160  $ 1,185  (2.1) %
(Some amounts may not reconcile due to rounding.)
10

Net Operating Income Return On Equity ("ROE")
Net Operating income ROE is calculated by dividing after-tax net operating income (loss) by average shareholders' equity, adjusted for average net unrealized depreciation (appreciation) of fixed maturity, available for sale securities. A reconciliation of net income, the most comparable GAAP measure, to net operating income is presented above. The Company believes net operating income ROE is a useful measure for management and investors as it allows for better comparability and removes variability when assessing the results of operations. A reconciliation of Net Operating Income ROE and Net Income ROE is shown below.

Quarter-to-Date Year-to-Date
(Dollars in millions) September 30, September 30, September 30, September 30,
2024 2023 2024 2023
(unaudited) (unaudited)
Beginning of period shareholders' equity $ 14,182  $ 10,902  $ 13,202  $ 8,441 
Add: Net unrealized depreciation (appreciation) of fixed maturity, available for sale securities 936  1,627  723  1,709 
Adjusted beginning of period shareholders' equity $ 15,118  $ 12,529  $ 13,925  $ 10,149 
End of period shareholders' equity $ 15,335  $ 11,226  $ 15,335  $ 11,226 
Add: Net unrealized depreciation (appreciation) of fixed maturity, available for sale securities 220  1,868  220  1,868 
Adjusted end of period shareholders' equity $ 15,555  $ 13,094  $ 15,555  $ 13,094 
Average adjusted shareholders' equity $ 15,336  $ 12,811  $ 14,740  $ 11,622 
After-tax net operating income (loss) $ 630  $ 613  $ 2,070  $ 1,684 
After-tax net gains (losses) on investments $ (25) (27) $ (44) (17)
After-tax foreign exchange income (expense) $ (97) 91  $ (60) 46 
Net income (loss) $ 509  $ 678  $ 1,966  $ 1,713 
Return on equity (annualized)
After-tax net operating income (loss) 16.4  % 19.2  % 18.7  % 19.3  %
After-tax net gains (losses) on investments -0.6  % -0.8  % -0.4  % -0.1  %
After-tax foreign exchange income (expense) -2.5  % 2.9  % -0.5  % 0.5  %
Net income (loss) 13.3  % 21.2  % 17.8  % 19.7  %
(Some amounts may not reconcile due to rounding.)
11

Underwriting Income
Underwriting income is calculated as net premiums earned, less (1) incurred losses and loss adjustment expenses, (2) commission, brokerage, taxes and fees, and (3) other underwriting expenses. Net income (loss) is the most comparable GAAP measure. The Company believes underwriting income is a useful measure for management and investors when assessing the performance of the Company's reinsurance and insurance business segments. Group underwriting income is allocated to our Reinsurance and Insurance reportable segments. A reconciliation of Underwriting Income and Net Income is shown below.
Quarter-to-Date
(Dollars in millions) September 30, 2024 September 30, 2023
(unaudited)
Reinsurance Insurance Group Reinsurance Insurance Group
Net premiums earned $ 2,970  $ 948  $ 3,918  $ 2,593  $ 920  $ 3,513 
Less: Incurred losses and LAE 1,942  642  2,584  1,653  593  2,246 
Less: Commission, brokerage, taxes and fees 710  116  826  643  108  752 
Less: Other underwriting expenses 73  163  236  65  151  215 
Underwriting income (loss) $ 245  $ 27  $ 272  $ 232  $ 69  $ 301 
Net investment income 496  406 
Net gains (losses) on investments (27) (31)
Corporate expenses (25) (19)
Interest, fee and bond issue cost amortization expense (38) (34)
Other income (expense) (102) 103 
Income tax benefit (expense) (68) (47)
Net income (loss) $ 509  $ 678 
(Some amounts may not reconcile due to rounding.)
Book value per common share outstanding excluding URA(D)
Book value per common share outstanding excluding net unrealized appreciation (depreciation) of fixed maturity, available for sale securities ("URA(D)") is calculated as reported shareholders' equity less URA(D), divided by common shares outstanding. Book value per share is the most comparable GAAP measure. The Company believes this metric is useful to management and investors as it shows the value of shareholder returns on a per share basis after eliminating the variability of investments held at fair value. Please see the table on page 3 for a reconciliation of book value per common share outstanding (excluding URA(D)) and book value per share.
Annualized Total Shareholder Return
Annualized TSR ("TSR") is calculated as year-to-date growth in book value per common share outstanding (excluding URA(D)) plus year-to-date dividends per share. As further discussed above, book value per common share outstanding (excluding URA(D)) is a non-GAAP measure. Please see the table on page 3 for a reconciliation of book value per common share outstanding (excluding URA(D)) and book value per share.
--Financial Details Follow--
12

EVEREST GROUP, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
Three Months Ended
September 30,		 Nine Months Ended
September 30,
(In millions of U.S. dollars, except per share amounts) 2024 2023 2024 2023
(unaudited) (unaudited)
REVENUES:
Premiums earned $ 3,918  $ 3,513  $ 11,262  $ 9,865 
Net investment income 496  406  1,481  1,023 
Net gains (losses) on investments (27) (31) (50) (21)
Other income (expense) (102) 103  (48) 61 
Total revenues 4,285  3,991  12,645  10,927 
CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses 2,584  2,246  7,132  6,173 
Commission, brokerage, taxes and fees 826  752  2,398  2,099 
Other underwriting expenses 236  215  694  620 
Corporate expenses 25  19  69  55 
Interest, fees and bond issue cost amortization expense 38  34  112  99 
Total claims and expenses 3,708  3,266  10,404  9,045 
INCOME (LOSS) BEFORE TAXES 577  725  2,241  1,883 
Income tax expense (benefit) 68  47  275  169 
NET INCOME (LOSS) $ 509  $ 678  $ 1,966  $ 1,713 
Other comprehensive income (loss), net of tax:
Unrealized appreciation (depreciation) ("URA(D)") of securities arising during the period 704  (257) 477  (180)
Reclassification adjustment for realized losses (gains) included in net income (loss) 30  15  44  21 
Total URA(D) of securities arising during the period 734  (242) 521  (159)
Foreign currency translation and other adjustments 83  (47) 45  (17)
Reclassification adjustment for amortization of net (gain) loss included in net income (loss) —  —  24  1 
Total benefit plan net gain (loss) for the period —  —  24  1 
Total other comprehensive income (loss), net of tax 816  (288) 590  (175)
COMPREHENSIVE INCOME (LOSS) $ 1,325  $ 390  $ 2,556  $ 1,538 
EARNINGS PER COMMON SHARE:
Basic $ 11.80  $ 15.63  $ 45.40  $ 41.49 
Diluted 11.80  15.63  45.40  41.49 
13

EVEREST GROUP, LTD.
CONSOLIDATED BALANCE SHEETS

September 30, 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, $30,753; 2023, $28,568, credit allowances: 2024, $(51); 2023, $(48)) $ 30,479  $ 27,740 
Fixed maturities - held to maturity, at amortized cost
(fair value: 2024, $799; 2023, $854, net of credit allowances: 2024, $(8); 2023, $(8)) 780  855 
Equity securities, at fair value 230  188 
Other invested assets 5,071  4,794 
Short-term investments 3,931  2,127 
Cash 1,599  1,437 
Total investments and cash 42,090  37,142 
Accrued investment income 380  324 
Premiums receivable (net of credit allowances: 2024, $(51); 2023, $(41)) 5,372  4,768 
Reinsurance paid loss recoverables (net of credit allowances: 2024, $(31); 2023, $(26)) 239  164 
Reinsurance unpaid loss recoverables 2,276  2,098 
Funds held by reinsureds 1,229  1,135 
Deferred acquisition costs 1,475  1,247 
Prepaid reinsurance premiums 952  713 
Income tax asset, net 863  868 
Other assets (net of credit allowances: 2024, $(9); 2023, $(9)) 986  941 
TOTAL ASSETS $ 55,864  $ 49,399 
LIABILITIES:
Reserve for losses and loss adjustment expenses 27,480  24,604 
Unearned premium reserve 7,462  6,622 
Funds held under reinsurance treaties 16  24 
Amounts due to reinsurers 979  650 
Losses in course of payment 259  171 
Senior notes 2,350  2,349 
Long-term notes 218  218 
Borrowings from FHLB 819  819 
Accrued interest on debt and borrowings 43  22 
Unsettled securities payable 434  137 
Other liabilities 469  582 
Total liabilities 40,529  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 3,799  3,773 
Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit)
of $(28) at 2024 and $(99) at 2023 (344) (934)
Treasury shares, at cost; 31.3 shares (2024) and 30.8 shares (2023) (4,108) (3,908)
Retained earnings 15,988  14,270 
Total shareholders' equity 15,335  13,202 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 55,864  $ 49,399 
14

EVEREST GROUP, LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended
September 30,
(In millions of U.S. dollars) 2024 2023
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 1,966  $ 1,713 
Adjustments to reconcile net income to net cash provided by operating activities:
Decrease (increase) in premiums receivable (529) (812)
Decrease (increase) in funds held by reinsureds, net (99) (26)
Decrease (increase) in reinsurance recoverables (112) (186)
Decrease (increase) in income taxes (65) (18)
Decrease (increase) in prepaid reinsurance premiums (201) (153)
Increase (decrease) in reserve for losses and loss adjustment expenses 2,605  1,768 
Increase (decrease) in unearned premiums 767  1,157 
Increase (decrease) in amounts due to reinsurers 278  233 
Increase (decrease) in losses in course of payment 86  258 
Change in equity adjustments in limited partnerships (236) (124)
Distribution of limited partnership income 106  81 
Change in other assets and liabilities, net (376) (377)
Non-cash compensation expense 49  37 
Amortization of bond premium (accrual of bond discount) (113) (35)
Net (gains) losses on investments 50  21 
Net cash provided by (used in) operating activities 4,177  3,536 
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from fixed maturities matured/called/repaid - available for sale 2,692  1,686 
Proceeds from fixed maturities sold - available for sale 4,322  468 
Proceeds from fixed maturities matured/called/repaid - held to maturity 129  81 
Proceeds from equity securities sold 15  126 
Distributions from other invested assets 289  189 
Cost of fixed maturities acquired - available for sale (9,069) (5,311)
Cost of fixed maturities acquired - held to maturity (46) (23)
Cost of equity securities acquired (35) (3)
Cost of other invested assets acquired (438) (422)
Net change in short-term investments (1,724) (1,338)
Net change in unsettled securities transactions 321  202 
Net cash provided by (used in) investing activities (3,545) (4,346)
CASH FLOWS FROM FINANCING ACTIVITIES:
Common shares issued (redeemed) during the period for share-based compensation, net of expense (23) (22)
Proceeds from public offering of common shares —  1,445 
Purchase of treasury shares (200) — 
Dividends paid to shareholders (249) (212)
Cost of shares withheld on settlements of share-based compensation awards (23) (22)
Net cash provided by (used in) financing activities (495) 1,188 
EFFECT OF EXCHANGE RATE CHANGES ON CASH 25  (12)
Net increase (decrease) in cash 162  367 
Cash, beginning of period 1,437  1,398 
Cash, end of period $ 1,599  $ 1,765 
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid (recovered) $ 340  $ 185 
Interest paid 90  75 
NON-CASH TRANSACTIONS:
Non-cash limited partnership distribution 23  — 
15