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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)
February 3, 2025


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 February 3, 2025, the registrant issued a news release announcing its fourth quarter 2024 results. A copy of that news release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
The news release furnished herewith contains information regarding the registrant’s net operating income (loss). Net operating income (loss) differs from net income (loss) attributable to Everest Group, the most directly comparable generally accepted accounting principle financial measure, by the exclusion of net gains (losses) on investments and net foreign exchange income (expense). Management believes that presentation of net operating income (loss) provides useful information to investors because it more accurately measures and predicts the registrant’s results of operations by removing the variability arising from both the management of the registrant’s investment portfolio and the fluctuations of foreign currency exchange rates. In addition, management, analysts and investors use net operating income (loss) to evaluate the financial performance of the registrant and the insurance industry in general.
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 February 3, 2025


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: February 3, 2025


EXHIBIT INDEX
Exhibit
Number
Description of Document
Page No.
4
104
Cover Page Interactive Data File (embedded
within the Inline XBRL document

EX-99.1 2 earningsrelease-exx991q420.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 Fourth Quarter and Full-Year 2024 Results
Annual Net Income of $1.4 billion and Net Operating Income of $1.3 billion
Decisive Actions to Fortify Reserves in U.S. Casualty Lines
HAMILTON, Bermuda – (BUSINESS WIRE) – February 3, 2025 – Everest Group, Ltd. (NYSE: EG), a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions, today reported its fourth quarter 2024 results.

Full-Year 2024 Highlights
•Total Shareholder Return of 9.2%1; 9.6% Net Income ROE and 9.0% Operating Income ROE
•$18.2 billion in gross written premium with year-over-year growth of 9.1% for the Group, 12.2% for Reinsurance, and 4.0% for Insurance on a comparable basis
•Combined ratios of 102.3% for the Group, 89.7% for Reinsurance and 130.7% for Insurance, which includes decisive actions to strengthen U.S. casualty reserves
•Group attritional combined ratio of 87.6% when excluding the impact of 0.5 points from profit commissions associated with favorable loss reserve development on mortgage business versus 86.9% when excluding the impact of 0.7 points from profit commission associated with favorable development on mortgage business in the prior year. Group's 2024 attritional combined ratio of 87.6% also includes 1.4 points of 2024 accident year loss reserve strengthening.
•$672 million of pre-tax catastrophe losses net of recoveries and reinstatement premiums, versus $451 million in the prior year
•Net investment income increased over $500 million to ∼$2 billion, a company record
•Strong operating cashflow for the year of $5.0 billion, a company record

Fourth Quarter 2024 Highlights
•Net Loss of $593 million; Net Operating Loss of $780 million driven primarily by net unfavorable development of prior year loss reserves in U.S. casualty lines
•$4.7 billion in gross written premium with year-over-year growth of 7.2% for the Group, 12.6% for Reinsurance, and -1.6% 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 135.5% for the Group, 90.4% for Reinsurance and 239.2% for Insurance, which includes decisive actions to strengthen U.S. casualty reserves
•Group attritional combined ratio of 91.6% when excluding the impact of 1.8 points from profit commissions associated with favorable loss reserve development on mortgage business versus 86.6% when excluding the impact of 2.7 points from profit commissions associated with favorable loss reserve development on mortgage business in the prior year. Group's fourth quarter 2024 attritional combined ratio of 91.6% also includes 5.8 points of 2024 accident year loss reserve strengthening.
1

•Net unfavorable development of approximately $1.5 billion in prior year loss reserves, resulting in an increase of 37.6 points on the combined ratio for the Group
•Increased current accident year losses by $229 million for the Group, comprised of $206 million in Insurance and $22 million in Other
•Pre-tax underwriting income (loss) of ($1.4) billion for the Group, $286 million for Reinsurance, and ($1.3) billion for Insurance
•$173 million of pre-tax catastrophe losses net of recoveries and reinstatement premiums versus $143 million in Q4 2023
•Net investment income improved to $473 million versus $411 million in the prior year fourth quarter, driven by a larger asset base as well as strong core fixed income investment returns
•Operating cashflow for the quarter of $780 million versus $1.0 billion in the prior year fourth quarter


(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.


“This was a pivotal year for Everest as we took decisive action to fortify our U.S. casualty reserves, solidify our franchise value, and raise the bar across all facets of the Company” said Jim Williamson, Everest President and CEO. “Our lead market Reinsurance franchise continues to demonstrate its value in the market, as evidenced by another well-executed January 1 renewal. In our Insurance business, the significant transformation of our North America insurance platform is well underway. We made meaningful progress improving our portfolio, all while taking aggressive underwriting action in U.S. casualty lines. Our team is energized about the opportunity ahead, and I firmly believe that our actions place Everest on a clear trajectory towards generating attractive returns throughout the cycle.”

2


Summary of Fourth Quarter 2024 Net Income and Other Items
•Net (loss) of ($593 million), equal to ($13.96) per diluted share, driven by reserve strengthening in U.S. casualty lines, versus fourth quarter 2023 net income of $804 million, equal to $18.53 per diluted share
•Net operating (loss) of ($780 million), equal to ($18.39) per diluted share, driven by reserve strengthening in U.S. casualty lines, versus fourth quarter 2023 net operating income of $1.1 billion, equal to $25.18 per diluted share
•GAAP combined ratio of 135.5%, including 37.6 points of unfavorable prior year reserve development, 5.8 points of 2024 accident year strengthening, and 5.3 points of catastrophe losses, versus 93.2% in the fourth quarter 2023, including 4.3 points of catastrophe losses

California Wildfires
•Pre-tax net catastrophe loss estimated to be in the range of $350 to $450 million for the first quarter 2025, net of estimated recoveries and reinstatement premiums
•Everest's loss estimate is based on an insured industry loss range of $35 to $45 billion

The following table summarizes the Company’s Net Income and related financial metrics.
Net income and operating income Q4 Year to Date Q4 Year to Date
All values in USD millions except for per share amounts and percentages 2024 2024 2023 2023
Everest Group
Net income (loss) (593) 1,373 804 2,517
Net operating income (loss) (2)
 (780) 1,289 1,093 2,776
Net income (loss) per diluted common share (13.96) 31.78 18.53 60.19
Net operating income (loss) per diluted common share (2)
 (18.39) 29.83 25.18 66.39
Net income (loss) return on average equity (annualized) (15.7%) 9.6% 23.8% 20.9%
After-tax net operating income (loss) return on average equity (annualized) (2)
 (20.6%) 9.0% 32.4% 23.1%
Notes
(2) Denotes non-GAAP financial measure. See "Comments on Non-GAAP Financial Measures" for an explanation and reconciliation.
3

Shareholders' Equity and Book Value per Share Q4 Year to Date Q4 Year to Date
All values in USD millions except for per share amounts and percentages 2024 2024 2023 2023
Beginning shareholders' equity 15,335 13,202 11,226 8,441
Net income (loss) (593) 1,373 804 2,517
Change - URA(D) of fixed maturity, available for sale securities (630) (127) 1,146 986
Dividends to shareholders (86) (334) (76) (288)
Purchase of treasury shares — (200) — —
Public equity offering of shares — — — 1,445
Other (151) (39) 103 102
Ending shareholders' equity 13,875 13,875 13,202 13,202
Common shares outstanding 43.0 43.4
Book value per common share outstanding 322.97 304.29
Less: URA(D) of fixed maturity, available for sale securities (19.77) (16.65)
Book value per common share outstanding excluding URA(D) (3)
 342.74 320.95
Change in BVPS adjusted for dividends 8.7% 44.3%
Total Shareholder Return ("TSR") - Annualized 9.2% 26.5%
Common share dividends paid - last 12 months 7.75 6.80
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.


4

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 Q4 Year to Date Q4 Year to Date Year on Year Change
All values in USD millions except for percentages 2024 2024 2023 2023 Q4 Year to Date
Gross written premium 4,671 18,232 4,323 16,637 8.0% 9.6%
Net written premium 4,026 15,814 3,861 14,730 4.3% 7.4%
Loss Ratio:
Current year 63.4% 59.8% 58.9% 59.2% 4.5 pts 0.6 pts
Prior year 37.6% 9.7% (0.1)% —% 37.7 pts 9.8 pts
Catastrophe 5.3% 5.0% 4.3% 3.5% 1.0 pts 1.5 pts
Total Loss ratio 106.3% 74.4% 63.0% 62.7% 43.3 pts 11.7 pts
Commission and brokerage ratio 23.0% 21.7% 23.8% 22.0% (0.8) pts (0.3) pts
Other underwriting expenses 6.2% 6.2% 6.3% 6.3% (0.1) pts (0.1) pts
Combined ratio 135.5% 102.3% 93.2% 90.9% 42.3 pts 11.4 pts
Attritional combined ratio (4) (6) (7)
 93.4% 88.1% 89.3% 87.6% 4.1 pts 0.5 pts
Pre-tax net catastrophe losses (5)
 173 672 143 451
Pre-tax net unfavorable (favorable) prior year reserve development 1,475 1,475 (5) (5)
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.
(6) The attritional combined ratio for the quarter and year -end December 31, 2024, included approximately $68m of profit commission related to loss reserves releases from the mortgage business. Excluding this profit commission, Group’s attritional combined ratio would have been 91.6% and 87.6% for the quarter and year ended December 31, 2024.
(7) The attritional combined ratio for the quarter and year -end December 31, 2023, included approximately $94m of profit commission related to loss reserves releases from the mortgage business. Excluding this profit commission, Group’s attritional combined ratio would have been 86.6% and 86.9% for the quarter and year ended December 31, 2023.


5

Reinsurance Segment – Quarterly Highlights
•Gross written premiums grew 12.6% on a comparable basis (constant dollar basis and excluding reinstatement premiums)2, to approximately $3.3 billion. We continue to solidify our franchise value and drive growth in lines with the best expected risk-adjusted returns.
•Growth was led by a 54.4% increase in Property Catastrophe XOL and 19.9% in Property Pro-Rata, partially offset by a 7.3% decrease in Casualty Pro-Rata, when adjusting for reinstatement premiums.
•Attritional loss ratio improved 90 basis points over last year to 56.9%, while the attritional combined ratio improved 140 basis points to 83.7% versus a year ago, when excluding the impact of 2.3 points and 3.6 points from profit commissions associated with favorable loss reserve development on mortgage business for the quarters ended December 31, 2024 and 2023, respectively.
•Strengthened U.S. casualty reserves by $684 million, fully offset by favorable development of well-seasoned reserves in property and mortgage lines.
•Pre-tax catastrophe losses were $125 million, net of estimated recoveries and reinstatement premiums, driven primarily by $275 million of losses from Hurricane Milton. Catastrophe losses in the quarter were partially offset by a release of $125 million on prior year events, primarily related to Hurricane Ian.
•Risk-adjusted returns remain very attractive, particularly in property and specialty lines.
Underwriting information - Reinsurance segment Q4 Year to Date Q4 Year to Date Year on Year Change
All values in USD millions except for percentages 2024 2024 2023 2023 Q4 Year to Date
Gross written premium 3,291 12,941 2,894 11,460 13.7% 12.9%
Net written premium 3,019 11,969 2,754 10,802 9.6% 10.8%
Loss Ratio:
Current year 56.2% 56.6% 57.6% 57.6% (1.4) pts (1.0) pts
Prior year —% —% (15.3)% (4.1)% 15.3 pts 4.1 pts
Catastrophe 5.4% 5.7% 5.5% 4.6% (0.1) pts 1.1 pts
Total Loss ratio 61.6% 62.2% 47.8% 58.1% 13.8 pts 4.2 pts
Commission and brokerage ratio 26.3% 24.9% 28.3% 25.7% (2.0) pts (0.8) pts
Other underwriting expenses 2.5% 2.5% 2.5% 2.6% — pts (0.1) pts
Combined ratio 90.4% 89.7% 78.6% 86.4% 11.8 pts 3.3 pts
Attritional combined ratio (4) (8) (9)
 86.0% 84.6% 88.7% 86.1% (2.7) pts (1.5) pts
Pre-tax net catastrophe losses (5)
 125 564 135 430
Pre-tax net unfavorable (favorable) prior year reserve development — — (401) (401)
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.
(8) The attritional combined ratio for the quarter and year -end December 31, 2024, included approximately $68m of profit commission related to loss reserves releases from the mortgage business. Excluding this profit commission, Reinsurance’s attritional combined ratio would have been 83.7% and 84.0% for the quarter and year ended December 31, 2024.
(9) The attritional combined ratio for the quarter and year -end December 31, 2023, included approximately $94m of profit commission related to loss reserves releases from the mortgage business. Excluding this profit commission, Reinsurance’s attritional combined ratio would have been 85.1% for both the quarter and year ended December 31, 2023.

6

Insurance Segment – Quarterly Highlights
•Gross written premiums decreased to $1.4 billion on a comparable basis (constant dollar basis and excluding reinstatement premiums)2, a 1.6% decrease year-over-year in constant dollars 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 32.3% in Property/Short Tail and 37.2% in Other Specialty lines. Growth was offset by a decrease of 36.9% in Accident and Health, as we exit the medical stop loss business, and 20.0% in Specialty Casualty, primarily in North America, reflecting our focus on lines of business with better expected margins.
•Strengthened prior year U.S. casualty reserves by $1.1 billion and increased current accident year losses in U.S. casualty lines by $206 million, totaling $1.3 billion.
•Pre-tax catastrophe losses were $47 million, net of estimated recoveries and reinstatement premiums, an increase over the prior year quarter, which benefited from benign catastrophe losses.
•Pricing continues to accelerate across North American long-tail lines (excluding financial lines).
Underwriting information - Insurance segment Q4 Year to Date Q4 Year to Date Year on Year Change
All values in USD millions except for percentages 2024 2024 2023 2023 Q4 Year to Date
Gross written premium 1,350 5,078 1,371 4,888 (1.5)% 3.9%
Net written premium 984 3,678 1,063 3,704 (7.5)% (0.7)%
Loss Ratio:
Current year 84.2% 68.3% 62.3% 63.3% 21.9 pts 4.9 pts
Prior year 119.2% 30.0% 32.4% 8.3% 86.8 pts 21.6 pts
Catastrophe 5.3% 3.0% 0.9% 0.6% 4.4 pts 2.4 pts
Total Loss ratio 208.7% 101.2% 95.6% 72.3% 113.1 pts 28.9 pts
Commission and brokerage ratio 12.6% 12.3% 11.6% 12.0% 1.0 pts 0.3 pts
Other underwriting expenses 17.9% 17.2% 16.6% 16.3% 1.3 pts 0.9 pts
Combined ratio 239.2% 130.7% 123.8% 100.5% 115.4 pts 30.1 pts
Attritional combined ratio (4)
 114.4% 97.5% 90.6% 91.6% 23.8 pts 5.9 pts
Pre-tax net catastrophe losses (5)
 47 107 8 20
Pre-tax net unfavorable (favorable) prior year reserve development 1,072 1,072 293 285
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.


7

Other Segment
•As disclosed in an 8-K filed with the SEC after the market close on January 27, 2025, we formed a new “Other” segment, primarily comprised of certain sports and leisure lines after giving effect to the sale of the business in October 2024, and other non-core lines of business such as asbestos & environmental exposures, and certain discontinued insurance programs and coverage classes, predominantly in U.S. casualty lines.
•Unfavorable development in our Other segment amounted to $425 million for both the full-year and fourth quarter 2024, including current accident year strengthening of $22 million.
•Strengthened asbestos & environmental reserves by $54 million during the fourth quarter resulting in a 3-year net asbestos survival ratio of 6.6 years.

Underwriting information - Other segment Q4 Year to Date Q4 Year to Date
All values in USD millions except for percentages 2024 2024 2023 2023
Gross written premium 29  212  57  289 
Net written premium 23  167  44  225 
Net premiums earned 43  197  57  225 
Incurred losses and LAE
Current year 53  175  38  156 
Prior year 403  403  102  110 
Catastrophes 1  1  —  — 
Total incurred losses and LAE 457  580  140  266 
Commission, brokerage, taxes and fees 5  24  6  22 
Other underwriting expenses 8  33  10  35 
Underwriting income (loss) (429) (440) (99) (98)
8

Investments and Shareholders’ Equity as of December 31, 2024
•Total invested assets and cash of $41.5 billion versus $37.1 billion on December 31, 2023
•Shareholders’ equity of $13.9 billion vs. $13.2 billion on December 31, 2023, including $849 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 $14.7 billion versus $13.9 billion on December 31, 2023
•Book value per share of $322.97 versus $304.29 at December 31, 2023
•Book value per share excluding unrealized gains (losses) on fixed maturity, available for sale securities of $342.74 versus $320.95 at December 31, 2023
•There were not any common share repurchases during the quarter. We repurchased $199.9 million for the full-year 2024.
•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 February 4, 2025. 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.

_______________________________________________
9

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 of the 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 December 31, Twelve Months Ended December 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 net operating income (loss) $ (780) $ (18.39) $ 1,093  $ 25.18  $ 1,289  $ 29.83  $ 2,776  $ 66.39 
After-tax net gains (losses) on investments 56  1.33  (220) (5.06) 12  0.28  (236) (5.65)
After-tax net foreign exchange income (expense) 132  3.10  (69) (1.60) 72  1.67  (23) (0.55)
Net income (loss) $ (593) $ (13.96) $ 804  $ 18.53  $ 1,373  $ 31.78  $ 2,517  $ 60.19 
(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. 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.
10

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 December 31,
2024 2023
(unaudited)
Reinsurance Insurance Group Reinsurance Insurance Group
Loss ratio 61.6  % 208.7  % 106.3  % 47.8  % 95.6  % 63.0  %
Adjustment for catastrophe losses (5.4) % (5.3) % (5.3) % (5.5) % (0.9) % (4.3) %
Adjustment for reinstatement premiums 0.7  % —  % 0.6  % 0.2  % —  % 0.1  %
Adjustment for prior year development (10)
 —  % (119.2) % (37.6) % 14.9  % (32.4) % (0.2) %
Adjustment for Russia/Ukraine war losses —  % —  % —  % 0.4  % —  % 0.3  %
Adjustment for other items —  % (0.3) % —  % —  % —  % —  %
Attritional loss ratio 56.9  % 84.0  % 63.9  % 57.8  % 62.3  % 59.0  %
(Some amounts may not reconcile due to rounding.)
Three Months Ended December 31,
2024 2023
(unaudited)
Reinsurance Insurance Group Reinsurance Insurance Group
Combined ratio 90.4  % 239.2  % 135.5  % 78.6  % 123.8  % 93.2  %
Adjustment for catastrophe losses (5.4) % (5.3) % (5.3) % (5.5) % (0.9) % (4.3) %
Adjustment for reinstatement premiums 1.0  % —  % 0.8  % 0.3  % —  % 0.2  %
Adjustment for prior year development (10)
 —  % (119.2) % (37.6) % 14.9  % (32.4) % (0.2) %
Adjustment for Russia/Ukraine war losses —  % —  % —  % 0.4  % —  % 0.3  %
Adjustment for other items —  % (0.4) % (0.1) % —  % 0.1  % —  %
Attritional combined ratio 86.0  % 114.4  % 93.4  % 88.7  % 90.6  % 89.3  %
Adjustment for profit commission (2.3) % —  % (1.8) % (3.6) % —  % (2.7) %
Attritional combined ratio excluding profit commission 83.7  % 114.4  % 91.6  % 85.1  % 90.6  % 86.6  %
(Some amounts may not reconcile due to rounding.)
11

Twelve Months Ended December 31,
2024 2023
(unaudited)
Reinsurance Insurance Group Reinsurance Insurance Group
Combined ratio 89.7  % 130.7  % 102.3  % 86.4  % 100.5  % 90.9  %
Adjustment for catastrophe losses (5.7) % (3.0) % (5.0) % (4.6) % (0.6) % (3.5) %
Adjustment for reinstatement premiums 0.6  % —  % 0.5  % 0.2  % —  % 0.1  %
Adjustment for prior year development (10)
 —  % (30.0) % (9.7) % 4.0  % (8.3) % —  %
Adjustment for Russia/Ukraine war losses —  % —  % —  % 0.1  % —  % 0.1  %
Adjustment for other items —  % (0.2) % —  % —  % —  % —  %
Attritional combined ratio 84.6  % 97.5  % 88.1  % 86.1  % 91.6  % 87.6  %
Adjustment for profit commission (0.6) % —  % (0.5) % (1.0) % —  % (0.7) %
Attritional combined ratio excluding profit commission 84.0  % 97.5  % 87.6  % 85.1  % 91.6  % 86.9  %
(Some amounts may not reconcile due to rounding.)
Notes
(10) 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:
12

(Dollars in millions) Quarter-to-Date
December 31, 2024 December 31, 2023 Change
(unaudited)
Gross Written Premium Gross Written Premium % Impact
Group $ 4,671  $ 4,323  8.0  %
Adjustment for gross CAT reinstatement premiums (51) (9) (0.9) %
Adjustment for foreign exchange effect —  (5) 0.1  %
Group (comparable basis) $ 4,620  $ 4,308  7.2  %
Reinsurance $ 3,291  $ 2,894  13.7  %
Adjustment for gross CAT reinstatement premiums (51) (9) (1.2) %
Adjustment for foreign exchange effect —  (6) 0.2  %
Reinsurance (comparable basis) $ 3,240  $ 2,879  12.6  %
Insurance $ 1,350  $ 1,371  (1.5) %
Adjustment for gross CAT reinstatement premiums —  —  —  %
Adjustment for foreign exchange effect —  1  (0.1) %
Insurance (comparable basis) $ 1,350  $ 1,372  (1.6) %
Other $ 29  $ 57  (49.1) %
Other (comparable basis) $ 29  $ 57  (49.1) %
(Some amounts may not reconcile due to rounding.)
(Dollars in millions) Year-to-Date
December 31, 2024 December 31, 2023 Change
(unaudited)
Gross Written Premium Gross Written Premium % Impact
Group $ 18,232  $ 16,637  9.6  %
Adjustment for gross CAT reinstatement premiums (103) (20) (0.4) %
Adjustment for foreign exchange effect —  (6) —  %
Group (comparable basis) $ 18,129  $ 16,611  9.1  %
Reinsurance $ 12,941  $ 11,460  12.9  %
Adjustment for gross CAT reinstatement premiums (103) (20) (0.6) %
Adjustment for foreign exchange effect —  —  —  %
Reinsurance (comparable basis) $ 12,838  $ 11,440  12.2  %
Insurance $ 5,078  $ 4,888  3.9  %
Adjustment for gross CAT reinstatement premiums —  —  —  %
Adjustment for foreign exchange effect —  (6) 0.1  %
Insurance (comparable basis) $ 5,078  $ 4,882  4.0  %
Other $ 212  $ 289  (26.6) %
Other (comparable basis) $ 212  $ 289  (26.6) %
(Some amounts may not reconcile due to rounding.)
13

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) December 31, December 31, December 31, December 31,
2024 2023 2024 2023
(unaudited) (unaudited)
Beginning of period shareholders' equity $ 15,335  $ 11,226  $ 13,202  $ 8,441 
Add: Net unrealized depreciation (appreciation) of fixed maturity, available for sale securities 220  1,868  723  1,709 
Adjusted beginning of period shareholders' equity $ 15,555  $ 13,094  $ 13,925  $ 10,149 
End of period shareholders' equity $ 13,875  $ 13,202  $ 13,875  $ 13,202 
Add: Net unrealized depreciation (appreciation) of fixed maturity, available for sale securities 849  723  849  723 
Adjusted end of period shareholders' equity $ 14,724  $ 13,925  $ 14,724  $ 13,925 
Average adjusted shareholders' equity $ 15,140  $ 13,509  $ 14,325  $ 12,037 
After-tax net operating income (loss) $ (780) $ 1,093  $ 1,289  $ 2,776 
After-tax net gains (losses) on investments $ 56  (220) $ 12  (236)
After-tax foreign exchange income (expense) $ 132  (69) $ 72  (23)
Net income (loss) $ (593) $ 804  $ 1,373  $ 2,517 
Return on equity (annualized)
After-tax net operating income (loss) (20.6) % 32.4  % 9.0  % 23.1  %
After-tax net gains (losses) on investments 1.5  % (6.5) % 0.1  % (2.0) %
After-tax foreign exchange income (expense) 3.5  % (2.1) % 0.5  % (0.2) %
Net income (loss) (15.7) % 23.8  % 9.6  % 20.9  %
(Some amounts may not reconcile due to rounding.)
14

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. A reconciliation of Underwriting Income and Net Income is shown below.
Quarter-to-Date
(Dollars in millions) December 31, 2024 December 31, 2023
(unaudited)
Reinsurance Insurance Other Consolidated Group Reinsurance Insurance Other Consolidated Group
Net premiums earned $ 2,983  $ 900  $ 43  $ 3,925  $ 2,616  $ 905  $ 57  $ 3,578 
Less: Incurred losses and LAE 1,837  1,877  457  4,172  1,249  865  140  2,254 
Less: Commission, brokerage, taxes and fees 784  114  5  903  742  105  6  853 
Less: Other underwriting expenses 75  161  8  244  66  150  10  226 
Underwriting income (loss) $ 286  $ (1,252) $ (429) $ (1,394) $ 559  $ (216) $ (99) $ 245 
Net investment income 473  411 
Net gains (losses) on investments 69  (255)
Corporate expenses (27) (18)
Interest, fee and bond issue cost amortization expense (37) (36)
Other income (expense) 169  (75)
Income tax benefit (expense) 155  532 
Net income (loss) $ (593) $ 804 
(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 4 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 4 for a reconciliation of book value per common share outstanding (excluding URA(D)) and book value per share.
--Financial Details Follow--
15

EVEREST GROUP, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
Three Months Ended Twelve Months Ended
December 31 December 31
(Dollars in millions, except per share amounts) 2024 2023 2024 2023
(unaudited) (unaudited)
REVENUES:
Premiums earned $ 3,925  $ 3,578  $ 15,187  $ 13,443 
Net investment income 473  411  1,954  1,434 
Total net gains (losses) on investments 69  (255) 19  (276)
Other income (expense) 169  (75) 121  (14)
Total revenues 4,636  3,659  17,281  14,587 
CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses 4,172  2,254  11,305  8,427 
Commission, brokerage, taxes and fees 903  853  3,300  2,952 
Other underwriting expenses 244  226  938  846 
Corporate expenses 27  18  95  73 
Interest, fees and bond issue cost amortization expense 37  36  149  134 
Total claims and expenses 5,383  3,387  15,787  12,432 
INCOME (LOSS) BEFORE TAXES (748) 272  1,493  2,154 
Income tax expense (benefit) (155) (532) 120  (363)
NET INCOME (LOSS) $ (593) $ 804  $ 1,373  $ 2,517 
Other comprehensive income (loss), net of tax:
Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period (574) 923  (97) 743 
Reclassification adjustment for realized losses (gains) included in net income (loss) (55) 223  (12) 244 
Total URA(D) on securities arising during the period (630) 1,146  (109) 986 
Foreign currency translation and other adjustments (173) 76  (128) 59 
Benefit plan actuarial net gain (loss) for the period 34  15  34  15 
Reclassification adjustment for amortization of net (gain) loss included in net income (loss) (26) —  (1) 2 
Total benefit plan net gain (loss) for the period 9  16  33  17 
Total other comprehensive income (loss), net of tax (794) 1,238  (204) 1,063 
COMPREHENSIVE INCOME (LOSS) $ (1,387) $ 2,041  $ 1,169  $ 3,580 
EARNINGS PER COMMON SHARE:
Basic $ (13.96) $ 18.53  $ 31.78  $ 60.19 
Diluted (13.96) 18.53  31.78  60.19 
16

EVEREST GROUP, LTD.
CONSOLIDATED BALANCE SHEETS

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 $ 28,908  $ 27,740 
(amortized cost: 2024, $29,934; 2023, $28,568, credit allowances: 2024, $(36); 2023, $(48))
Fixed maturities - held to maturity, at amortized cost
(fair value: 2024, $759; 2023, $854, net of credit allowances: 2024, $(8); 2023, $(8)) 757  855 
Equity securities, at fair value 217  188 
Other invested assets 5,392  4,794 
Short-term investments 4,707  2,127 
Cash 1,549  1,437 
Total investments and cash 41,531  37,142 
Accrued investment income 368  324 
Premiums receivable (net of credit allowances: 2024, $(54); 2023, $(41)) 5,378  4,768 
Reinsurance paid loss recoverables (net of credit allowances: 2024, $(41); 2023, $(26)) 207  164 
Reinsurance unpaid loss recoverables 2,915  2,098 
Funds held by reinsureds 1,218  1,135 
Deferred acquisition costs 1,461  1,247 
Prepaid reinsurance premiums 869  713 
Income tax asset, net 1,223  868 
Other assets (net of credit allowances: 2024, $(9); 2023, $(9)) 1,171  941 
TOTAL ASSETS $ 56,341  $ 49,399 
LIABILITIES:
Reserve for losses and loss adjustment expenses 29,889  24,604 
Unearned premium reserve 7,324  6,622 
Funds held under reinsurance treaties 27  24 
Amounts due to reinsurers 701  650 
Losses in course of payment 241  171 
Senior notes 2,350  2,349 
Long-term notes 218  218 
Borrowings from FHLB 1,019  819 
Accrued interest on debt and borrowings 22  22 
Unsettled securities payable 84  137 
Other liabilities 590  582 
TOTAL LIABILITIES 42,466  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; 74.3 (2024) and 74.2 (2023)
outstanding before treasury shares 1  1 
Additional paid-in capital 3,812  3,773 
Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit)
of $(177) at 2024 and $(99) at 2023 (1,138) (934)
Treasury shares, at cost: 31.3 shares (2024) and 30.8 shares (2023) (4,108) (3,908)
Retained earnings 15,309  14,270 
Total shareholders' equity 13,875  13,202 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 56,341  $ 49,399 
17

EVEREST GROUP, LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Twelve Months Ended
December 31
(In millions of U.S. dollars) 2024 2023
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 1,373  $ 2,517 
Adjustments to reconcile net income to net cash provided by operating activities:
Decrease (increase) in premiums receivable (715) (1,064)
Decrease (increase) in funds held by reinsureds, net (81) (66)
Decrease (increase) in reinsurance recoverables (1,091) 143 
Decrease (increase) in income taxes (277) (559)
Decrease (increase) in prepaid reinsurance premiums (232) (46)
Increase (decrease) in reserve for losses and loss adjustment expenses 5,612  2,256 
Increase (decrease) in unearned premiums 809  1,387 
Increase (decrease) in amounts due to reinsurers 135  18 
Increase (decrease) in losses in course of payment 75  93 
Change in equity adjustments in limited partnerships (261) (168)
Distribution of limited partnership income 163  120 
Change in other assets and liabilities, net (431) (339)
Non-cash compensation expense 63  49 
Amortization of bond premium (accrual of bond discount) (167) (64)
Net (gains) losses on investments (19) 276 
Net cash provided by (used in) operating activities 4,957  4,553 
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from fixed maturities matured/called/repaid - available for sale 3,783  2,310 
Proceeds from fixed maturities sold - available for sale 6,257  3,849 
Proceeds from fixed maturities matured/called/repaid - held to maturity 157  105 
Proceeds from equity securities sold 37  126 
Distributions from other invested assets 409  245 
Cost of fixed maturities acquired - available for sale (11,563) (10,653)
Cost of fixed maturities acquired - held to maturity (49) (112)
Cost of equity securities acquired (50) (17)
Cost of other invested assets acquired (936) (902)
Net change in short-term investments (2,494) (1,034)
Net change in unsettled securities transactions (27) 181 
Net cash provided by (used in) investing activities (4,478) (5,902)
CASH FLOWS FROM FINANCING ACTIVITIES:
Common shares issued (redeemed) during the period for share-based compensation, net of expense (24) (23)
Proceeds from public offering of common shares —  1,445 
Purchase of treasury shares (200) — 
Dividends paid to shareholders (334) (288)
Net FHLB borrowings (repayments) 200  300 
Cost of shares withheld on settlements of share-based compensation awards (25) (24)
Net cash provided by (used in) financing activities (383) 1,409 
EFFECT OF EXCHANGE RATE CHANGES ON CASH 16  (23)
Net increase (decrease) in cash 112  38 
Cash, beginning of period 1,437  1,398 
Cash, end of period $ 1,549  $ 1,437 
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid (recovered) $ 397  $ 196 
Interest paid 147  130 
NON-CASH TRANSACTIONS:
Non-cash limited partnership distribution $ 23  $ — 
18