Net Income of $724 million and Operating
Income of $730 million Operating Income ROE of 19.7% and
TSR1 of 20.0% $358 million of Underwriting Income and
Combined Ratio of 90.3%
Everest Group, Ltd. (NYSE: EG), a global underwriting leader
providing best-in-class property, casualty, and specialty
reinsurance and insurance solutions, today reported its second
quarter 2024 results.
Second Quarter 2024 Highlights
- Total Shareholder Return of 20.0% annualized; 19.6% Net Income
ROE and 19.7% Operating Income ROE
- Net Income of $724 million; Operating Income of $730 million
driven by attritional underwriting margin improvement and strong
net investment income generation
- $4.7 billion in gross written premium with year-over-year
growth of 12.8%2 for the Group, 16.5%2 for Reinsurance, and 5.8%2
for Insurance
- Combined ratios of 90.3% for the Group, 88.9% for Reinsurance
and 94.4% for Insurance
- Attritional combined ratios of 86.6% for the Group, 84.4% for
Reinsurance and 92.8% for Insurance
- Pre-tax underwriting income of $358 million for the Group, $303
million for Reinsurance, and $54 million for Insurance
- $135 million of pre-tax catastrophe losses net of recoveries
and reinstatement premiums versus $27 million in the prior
year
- Net investment income improved to $528 million versus $357
million in the prior year second quarter, a company record, driven
by a larger asset base as well as strong core fixed income and
alternative investment returns
- Strong operating cashflow for the quarter of $1.3 billion
versus $1.1 billion in the second quarter 2023 Footnote 1 denotes
annualized figure; represents Total Shareholder Return or "TSR"
Footnote 2 denotes constant currency figure and excludes
reinstatement premiums
“Everest produced another strong quarter and an excellent first
half of the year, with second quarter results delivering an
annualized Total Shareholder Return and operating ROE of 20%,
driven by solid underwriting and net investment income,” said Juan
C. Andrade, Everest President and CEO. “The fundamentals of our
business are robust, creating significant momentum as we expand in
areas with the strongest profit trajectory, while remaining focused
on disciplined underwriting and risk selection. Our leading
Reinsurance business continues to achieve excellent risk adjusted
returns, again evidenced by our success through the most recent
renewals. We made progress advancing our primary insurance strategy
in key global markets, investing in, and expanding our platform
with exceptional talent and capabilities to capitalize on market
opportunities. As we move through the second half of 2024, we are
capitalizing on this momentum, focused on achieving our primary
objective of consistently generating industry leading returns.”
Summary of Second Quarter 2024 Net Income
and Other Items
- Net income of $724 million, equal to $16.70 per diluted share
versus second quarter 2023 net income of $670 million, equal to
$16.26 per diluted share
- Net operating income of $730 million, equal to $16.85 per
diluted share versus second quarter 2023 net operating income of
$627 million, equal to $15.21 per diluted share
- GAAP combined ratio of 90.3%, including 4.1 points of
catastrophe losses, versus the second quarter 2023 figure of 87.7%,
including 0.8 points of catastrophe losses
The following table summarizes the Company’s Net Income and
related financial metrics.
Net income and operating income
Q2
Year to Date
Q2
Year to Date
All values in USD millions except for
per share amounts and percentages
2024
2024
2023
2023
Everest
Group
Net income (loss)
724
1,457
670
1,035
Net operating income (loss) (1)
730
1,439
627
1,070
Net income (loss) per diluted common
share
16.70
33.57
16.26
25.74
Net operating income (loss) per diluted
common share
16.85
33.17
15.21
26.61
Net income (loss) return on average equity
(annualized)
19.6%
20.1%
23.3%
18.3%
After-tax operating income (loss) return
on average equity (annualized)
19.7%
19.8%
21.8%
18.9%
Notes
(1) Refer to the reconciliation of net
income to net operating income found on page 8 of this press
release
Shareholders' Equity and Book Value per
Share
Q2
Year to Date
Q2
Year to Date
All values in USD millions except for
per share amounts and percentages
2024
2024
2023
2023
Beginning shareholders' equity
13,628
13,202
9,014
8,441
Net income (loss)
724
1,457
670
1,035
Change - unrealized gains (losses) - Fixed
inc. investments
(60)
(213)
(167)
82
Dividends to shareholders
(86)
(163)
(72)
(136)
Purchase of treasury shares
(65)
(100)
—
—
Public equity offering of shares
—
—
1,445
1,445
Other
41
(1)
11
36
Ending shareholders' equity
14,182
14,182
10,902
10,902
Common shares outstanding
43.3
43.4
Book value per common share
outstanding
327.68
251.17
Less: Unrealized appreciation/depreciation
of fixed maturity investments ("URAD")
(21.62)
(37.47)
Adjusted book value per common share
outstanding excluding URAD
349.30
288.64
Change in BVPS adjusted for dividends
8.9%
18.1%
Total Shareholder Return ("TSR") -
Annualized
20.0%
25.3%
Common share dividends paid - last 12
months
7.25
6.60
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
Q2
Year to Date
Q2
Year to Date
Year on Year Change
All values in USD millions except for
percentages
2024
2024
2023
2023
Q2
Year to Date
Gross written premium
4,725
9,136
4,180
7,923
13.0%
15.3%
Net written premium
4,084
7,984
3,674
7,003
11.2%
14.0%
Loss Ratio:
Current year
58.5%
58.7%
59.5%
59.6%
(1.0) pts
(0.9) pts
Prior year
—%
—%
—%
—%
— pts
— pts
Catastrophe
4.1%
3.2%
0.8%
2.2%
3.3 pts
1.0 pts
Total Loss ratio
62.6%
61.9%
60.3%
61.8%
2.3 pts
0.1 pts
Commission and brokerage ratio
21.4%
21.4%
21.1%
21.2%
0.3 pts
0.2 pts
Other underwriting expenses
6.3%
6.2%
6.3%
6.4%
— pts
(0.1) pts
Combined ratio
90.3%
89.6%
87.7%
89.4%
2.6 pts
0.2 pts
Attritional combined ratio (1)
86.6%
86.5%
86.8%
87.2%
(0.2) pts
(0.7) pts
Pre-tax net catastrophe losses (2)
135
220
27
137
Pre-tax net unfavorable (favorable) prior
year reserve development
—
—
—
—
Notes
(1) Attritional ratios exclude catastrophe
losses, net CAT reinstatement premiums earned, prior year
development, COVID-19 losses and losses from the Russia/Ukraine
war.
(2) Pre-tax net catastrophe losses are net
of reinsurance and reinstatement premiums
Reinsurance Segment – Quarterly Highlights
- Gross written premiums grew 16.5% on a constant dollar basis
and excluding reinstatement premiums, to approximately $3.2
billion. Growth was broad-based across geographies and lines as we
continue to execute with precision and leverage our leading
franchise.
- Growth was driven by a 31.4% increase in Property Pro-Rata,
25.0% in Property Catastrophe XOL, and 19.6% in Casualty Pro-Rata
(driven by increased rate), when adjusting for reinstatement
premiums
- Attritional loss ratio improved 60 basis points over last year
to 57.0%, while the attritional combined ratio improved 30 basis
points to 84.4% versus a year ago.
- Pre-tax catastrophe losses were $120 million net of estimated
recoveries and reinstatement premiums, driven primarily by a number
of mid-sized international events.
- Risk-adjusted returns remain very attractive, particularly in
property and specialty lines.
Underwriting information - Reinsurance
segment
Q2
Year to Date
Q2
Year to Date
Year on Year Change
All values in USD millions except for
percentages
2024
2024
2023
2023
Q2
Year to Date
Gross written premium
3,209
6,385
2,747
5,368
16.8%
18.9%
Net written premium
3,033
5,975
2,621
5,059
15.7%
18.1%
Loss Ratio:
Current year
56.7%
56.9%
57.6%
57.7%
(0.9) pts
(0.8) pts
Prior year
—%
—%
—%
—%
— pts
— pts
Catastrophe
5.0%
4.0%
1.2%
3.1%
3.8 pts
0.9 pts
Total Loss ratio
61.7%
60.9%
58.8%
60.8%
2.9 pts
0.1 pts
Commission and brokerage ratio
24.6%
24.6%
24.5%
24.7%
0.1 pts
(0.1) pts
Other underwriting expenses
2.6%
2.6%
2.6%
2.7%
— pts
(0.1) pts
Combined ratio
88.9%
88.1%
85.8%
88.2%
3.1 pts
(0.1) pts
Attritional combined ratio (1)
84.4%
84.4%
84.7%
85.3%
(0.3) pts
(0.9) pts
Pre-tax net catastrophe losses (2)
120
200
27
135
Pre-tax net prior year reserve
development
—
—
—
—
Notes
(1) Attritional ratios exclude catastrophe
losses, net CAT reinstatement premiums earned, prior year
development, COVID-19 losses and losses from the Russia/Ukraine
war.
(2) Pre-tax net catastrophe losses are net
of reinsurance and reinstatement premiums
Insurance Segment – Quarterly Highlights
- Gross written premiums rose to $1.5 billion, a 5.8% increase
year-over-year in constant dollars. Our International business
continued to gain traction, and we received regulatory approval for
new operations in Australia, Colombia, and Mexico.
- As we continue to proactively change our mix of business,
growth was driven by a 31.1% increase in Property/Short Tail and
26.0% in Other Specialty, led by growth in aviation, energy,
surety, and construction. Growth was partially offset by a decrease
of 37.4% in Accident and Health and 18.0% in Workers' Compensation
as we continue to focus on lines of business with better expected
margins.
- Attritional loss ratio improved 70 basis points over last year
to 63.7%.
- Pre-tax catastrophe losses were $15 million, net of estimated
recoveries and reinstatement premiums, a modest increase over the
prior year quarter, which benefited from benign catastrophe
losses.
- Pricing continues to exceed loss trend in aggregate.
- There was a meaningful acceleration in pricing across North
American long-tail lines (excluding financial lines).
Underwriting information - Insurance
segment
Q2
Year to Date
Q2
Year to Date
Year on Year Change
All values in USD millions except for
percentages
2024
2024
2023
2023
Q2
Year to Date
Gross written premium
1,515
2,752
1,433
2,555
5.7%
7.7%
Net written premium
1,051
2,009
1,053
1,944
(0.2)%
3.3%
Loss Ratio:
Current year
63.7%
63.8%
64.4%
64.4%
(0.7) pts
(0.6) pts
Prior year
—%
—%
—%
—%
— pts
— pts
Catastrophe
1.5%
1.0%
—%
0.1%
1.5 pts
0.9 pts
Total Loss ratio
65.3%
64.9%
64.4%
64.5%
0.9 pts
0.4 pts
Commission and brokerage ratio
12.2%
12.1%
12.1%
12.0%
0.1 pts
0.1 pts
Other underwriting expenses
16.9%
16.7%
16.2%
15.9%
0.7 pts
0.8 pts
Combined ratio
94.4%
93.7%
92.6%
92.4%
1.8 pts
1.3 pts
Attritional combined ratio (1)
92.8%
92.7%
92.6%
92.3%
0.2 pts
0.4 pts
Pre-tax net catastrophe losses (2)
15
20
—
2
Pre-tax net prior year reserve
development
—
—
—
—
Notes
(1) Attritional ratios exclude catastrophe
losses, net CAT reinstatement premiums earned, prior year
development, COVID-19 losses and losses from the Russia/Ukraine
war.
(2) Pre-tax net catastrophe losses are net
of reinsurance and reinstatement premiums
Investments and Shareholders’ Equity as of June 30,
2024
- Total invested assets and cash of $39.1 billion versus $37.1
billion on December 31, 2023
- Shareholders’ equity of $14.2 billion vs. $13.2 billion on
December 31, 2023, including $936 million of unrealized net losses
on AFS fixed maturity investments
- Shareholders’ equity excluding unrealized gains (losses) on AFS
fixed maturity investments of $15.1 billion versus $13.9 billion on
December 31, 2023
- Book value per share of $327.68 versus $304.29 at December 31,
2023
- Book value per share excluding unrealized gains (losses) on AFS
fixed maturity investments of $349.30 versus $320.95 at December
31, 2023
- Common share repurchases of $65.0 million during the quarter,
representing 173,718 shares at an average price of $374.17 per
share
- Common share dividends declared and paid in the quarter of
$2.00 per 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, pandemic, 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 August 1, 2024. The call will be available on
the Internet through the Company’s website at
https://www.everestglobal.com/investor-relations.
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.
_______________________________________________
The Company generally uses after-tax operating income (loss), a
non-GAAP financial measure, to evaluate its performance. After-tax
operating income (loss) consists of net income (loss) excluding
after-tax net gains (losses) on investments and after-tax net
foreign exchange income (expense) as the following reconciliation
displays:
(Dollars in millions, except per share
amounts)
Three Months Ended June 30,
Six Months Ended June 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)
$
730
$
16.85
$
627
$
15.21
$
1,439
$
33.17
$
1,070
$
26.61
After-tax net gains (losses) on
investments
(14
)
(0.32
)
4
0.11
(20
)
(0.45
)
10
0.25
After-tax net foreign exchange income
(expense)
7
0.17
39
0.94
37
0.86
(45
)
(1.12
)
Net income (loss)
$
724
$
16.70
$
670
$
16.26
$
1,457
$
33.57
$
1,035
$
25.74
(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 operating income (loss) in their
analyses for the reasons discussed above. The Company provides
after-tax 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.
--Financial Details Follow--
EVEREST GROUP, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
Three Months Ended June 30,
Six Months Ended June 30,
(In millions of U.S. dollars, except per
share amounts)
2024
2023
2024
2023
(unaudited)
(unaudited)
REVENUES:
Premiums earned
$
3,693
$
3,251
$
7,345
$
6,352
Net investment income
528
357
985
617
Net gains (losses) on investments
(17
)
5
(24
)
10
Other income (expense)
23
38
54
(42
)
Total revenues
4,227
3,650
8,360
6,936
CLAIMS AND EXPENSES:
Incurred losses and loss adjustment
expenses
2,311
1,960
4,548
3,927
Commission, brokerage, taxes and fees
790
686
1,571
1,347
Other underwriting expenses
234
205
458
405
Corporate expenses
22
17
44
36
Interest, fees and bond issue cost
amortization expense
37
33
75
65
Total claims and expenses
3,395
2,901
6,696
5,779
INCOME (LOSS) BEFORE TAXES
832
750
1,664
1,157
Income tax expense (benefit)
108
80
207
122
NET INCOME (LOSS)
$
724
$
670
$
1,457
$
1,035
Other comprehensive income (loss), net of
tax:
Unrealized appreciation (depreciation)
("URA(D)") on securities arising during the period
(70
)
(169
)
(227
)
77
Reclassification adjustment for realized
losses (gains) included in net income (loss)
9
2
14
5
Total URA(D) on securities arising during
the period
(60
)
(167
)
(213
)
82
Foreign currency translation
adjustments
—
(1
)
(38
)
30
Reclassification adjustment for
amortization of net (gain) loss included in net income (loss)
24
—
25
1
Total benefit plan net gain (loss) for the
period
24
—
25
1
Total other comprehensive income (loss),
net of tax
(36
)
(168
)
(227
)
113
COMPREHENSIVE INCOME (LOSS)
$
688
$
502
$
1,230
$
1,148
EARNINGS PER COMMON SHARE:
Basic
$
16.70
$
16.26
$
33.57
$
25.74
Diluted
16.70
16.26
33.57
25.74
EVEREST GROUP, LTD.
CONSOLIDATED BALANCE SHEETS
June 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, $30,134; 2023,
$28,568, credit allowances: 2024, $(42); 2023, $(48))
$
29,031
$
27,740
Fixed maturities - held to maturity, at
amortized cost
(fair value: 2024, $788; 2023, $854, net
of credit allowances: 2024, $(8); 2023, $(8))
787
855
Equity securities, at fair value
219
188
Other invested assets
4,994
4,794
Short-term investments
2,464
2,127
Cash
1,570
1,437
Total investments and cash
39,065
37,142
Accrued investment income
360
324
Premiums receivable (net of credit
allowances: 2024, $(45); 2023, $(41))
5,403
4,768
Reinsurance paid loss recoverables (net of
credit allowances: 2024, $(29); 2023, $(26))
254
164
Reinsurance unpaid loss recoverables
2,151
2,098
Funds held by reinsureds
1,189
1,135
Deferred acquisition costs
1,422
1,247
Prepaid reinsurance premiums
806
713
Income tax asset, net
927
868
Other assets (net of credit allowances:
2024, $(9); 2023, $(9))
983
941
TOTAL ASSETS
$
52,560
$
49,399
LIABILITIES:
Reserve for losses and loss adjustment
expenses
25,853
24,604
Unearned premium reserve
7,313
6,622
Funds held under reinsurance treaties
13
24
Amounts due to reinsurers
869
650
Losses in course of payment
289
171
Senior notes
2,349
2,349
Long-term notes
218
218
Borrowings from FHLB
819
819
Accrued interest on debt and
borrowings
22
22
Unsettled securities payable
175
137
Other liabilities
458
582
Total liabilities
38,378
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
3,785
3,773
Accumulated other comprehensive income
(loss), net of deferred income tax expense (benefit)
of $(162) at 2024 and $(99) at 2023
(1,160
)
(934
)
Treasury shares, at cost; 31.0 shares
(2024) and 30.8 shares (2023)
(4,008
)
(3,908
)
Retained earnings
15,565
14,270
Total shareholders' equity
14,182
13,202
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY
$
52,560
$
49,399
EVEREST GROUP, LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended June 30,
(In millions of U.S. dollars)
2024
2023
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
$
1,457
$
1,035
Adjustments to reconcile net income to net
cash provided by operating activities:
Decrease (increase) in premiums
receivable
(685
)
(584
)
Decrease (increase) in funds held by
reinsureds, net
(66
)
(5
)
Decrease (increase) in reinsurance
recoverables
(236
)
(21
)
Decrease (increase) in income taxes
4
56
Decrease (increase) in prepaid reinsurance
premiums
(130
)
(40
)
Increase (decrease) in reserve for losses
and loss adjustment expenses
1,388
1,142
Increase (decrease) in unearned
premiums
744
732
Increase (decrease) in amounts due to
reinsurers
258
63
Increase (decrease) in losses in course of
payment
122
75
Change in equity adjustments in limited
partnerships
(177
)
(56
)
Distribution of limited partnership
income
60
49
Change in other assets and liabilities,
net
(292
)
(293
)
Non-cash compensation expense
33
25
Amortization of bond premium (accrual of
bond discount)
(65
)
(11
)
Net (gains) losses on investments
24
(10
)
Net cash provided by (used in) operating
activities
2,439
2,158
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from fixed maturities
matured/called/repaid - available for sale
1,707
1,137
Proceeds from fixed maturities sold -
available for sale
1,085
168
Proceeds from fixed maturities
matured/called/repaid - held to maturity
109
61
Proceeds from equity securities sold
15
46
Distributions from other invested
assets
209
133
Cost of fixed maturities acquired -
available for sale
(4,475
)
(3,396
)
Cost of fixed maturities acquired - held
to maturity
(36
)
(15
)
Cost of equity securities acquired
(35
)
(3
)
Cost of other invested assets acquired
(314
)
(298
)
Net change in short-term investments
(299
)
(625
)
Net change in unsettled securities
transactions
18
41
Net cash provided by (used in) investing
activities
(2,016
)
(2,752
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Common shares issued (redeemed) during the
period for share-based compensation, net of expense
(21
)
(19
)
Proceeds from public offering of common
shares
—
1,445
Purchase of treasury shares
(100
)
—
Dividends paid to shareholders
(163
)
(136
)
Cost of shares withheld on settlements of
share-based compensation awards
(21
)
(20
)
Net cash provided by (used in) financing
activities
(305
)
1,269
EFFECT OF EXCHANGE RATE CHANGES ON
CASH
14
(7
)
Net increase (decrease) in cash
133
668
Cash, beginning of period
1,437
1,398
Cash, end of period
$
1,570
$
2,067
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid (recovered)
$
203
$
73
Interest paid
74
64
NON-CASH TRANSACTIONS:
Non-cash limited partnership
distribution
23
—
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240731807366/en/
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Investors: Matt Rohrmann Head of Investor Relations
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Everest (NYSE:EG)
過去 株価チャート
から 8 2024 まで 9 2024
Everest (NYSE:EG)
過去 株価チャート
から 9 2023 まで 9 2024