Everest Reports First Quarter 2024 Results

Published

Net Income of $733 million and Operating Income of $709 million

TSR1 of 18.1%; 20.6% Net Income ROE and 20.0% Operating Income ROE

88.8% Combined Ratio Resulting in Record Underwriting Income of $409 million

HAMILTON, Bermuda--(BUSINESS WIRE)-- Everest Group, Ltd. (NYSE: EG), a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions, today reported its first quarter 2024 results.

First Quarter 2024 Highlights

  • Net Income of $733 million; Operating Income of $709 million driven by underwriting margin improvement and strong net investment income generation
  • Total Shareholder Return of 18.1% annualized; 20.6% Net Income ROE and 20.0% Operating Income ROE
  • $4.4 billion in gross written premium with year-over-year growth of 17.2%2 for the Group, 20.4%2 for Reinsurance, and 9.8%2 for Insurance
  • Combined ratios of 88.8% for the Group, 87.3% for Reinsurance and 93.1% for Insurance
  • Attritional combined ratios of 86.5% for the Group, 84.4% for Reinsurance and 92.5% for Insurance
  • Pre-tax underwriting income of $409 million, a company record, versus pre-tax underwriting income of $273 million in the prior year
  • $85 million of pre-tax catastrophe losses net of recoveries and reinstatement premiums, primarily driven by the Francis Scott Key Bridge Collapse in Baltimore, versus $110 million in the prior year
  • Net investment income improved to $457 million versus $260 million in the prior year first quarter, a company record, driven by a larger asset base and strong core fixed income returns
  • Strong operating cashflow for the quarter of $1.1 billion, in-line with the prior year quarter

Footnote 1 denotes annualized figure; represents Total Shareholder Return or "TSR"

Footnote 2 denotes constant currency figure and excludes reinstatement premiums

“Everest had a strong start to 2024, with first quarter results delivering significant profitability across all key metrics, including a Total Shareholder Return in excess of 18% and an operating return on equity of 20%,” said Juan C. Andrade, Everest President and CEO. “Group underwriting income increased 50% over the prior year to a quarterly record of $409 million with a combined ratio of 88.8%, driven by both of our underwriting franchises. Our reinsurance business continued to differentiate Everest during another outstanding January 1 renewal as the flight to quality accelerated. We gained market share with targeted clients, positioning the portfolio for attractive levels of profitability. In our insurance division, we advanced our disciplined expansion across global markets, while remaining focused on prudent risk selection and the bottom line. Additionally, our investment portfolio contributed a record $457 million in net investment income. With strong momentum across our underwriting businesses, we are executing on our three-year strategic plan, focused on generating consistent, industry leading financial returns.”

Summary of First Quarter 2024 Net Income and Other Items

  • Net Income of $733 million, equal to $16.87 per diluted share versus first quarter 2023 net income of $365 million, equal to $9.31 per diluted share
  • Operating income of $709 million, equal to $16.32 per diluted share versus first quarter 2023 net operating income of $443 million, equal to $11.31 per diluted share
  • GAAP combined ratio of 88.8%, including 2.3 points of catastrophe losses, versus the first quarter 2023 figure of 91.2%, including 3.7 points of catastrophe losses

The following table summarizes the Company’s Net Income and related financial metrics.

Net income and operating income

Q1

 

Year to Date

 

Q1

 

Year to Date

All values in USD millions except for per share amounts and percentages

2024

 

2024

 

2023

 

2023

Everest Group

 

 

 

 

 

 

 

Net income (loss)

733

 

733

 

365

 

365

Operating income (loss) (1)

709

 

709

 

443

 

443

 

 

 

 

 

 

 

 

Net income (loss) per diluted common share

16.87

 

16.87

 

9.31

 

9.31

Net operating income (loss) per diluted common share

16.32

 

16.32

 

11.31

 

11.31

 

 

 

 

 

 

 

 

Net income (loss) return on average equity (annualized)

20.6%

 

20.6%

 

14.2%

 

14.2%

After-tax operating income (loss) return on average equity (annualized)

20.0%

 

20.0%

 

17.2%

 

17.2%

 

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

Q1

 

 

Year to Date

 

 

Q1

 

 

Year to Date

 

All values in USD millions except for per share amounts and percentages

2024

 

 

2024

 

 

2023

 

 

2023

 

Beginning shareholders' equity

13,202

 

 

13,202

 

 

8,441

 

 

8,441

 

Net income (loss)

733

 

 

733

 

 

365

 

 

365

 

Change - unrealized gains (losses) - Fixed inc. investments

(153

)

 

(153

)

 

249

 

 

249

 

Dividends to shareholders

(76

)

 

(76

)

 

(65

)

 

(65

)

Purchase of treasury shares

(35

)

 

(35

)

 

 

 

 

Other

(42

)

 

(42

)

 

24

 

 

24

 

Ending shareholders' equity

13,628

 

 

13,628

 

 

9,014

 

 

9,014

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

 

43.5

 

 

 

 

 

39.3

 

Book value per common share outstanding

 

 

 

313.55

 

 

 

 

 

229.49

 

Less: Unrealized appreciation/depreciation of fixed maturity investments ("URAD")

 

 

 

(20.15

)

 

 

 

 

(37.15

)

Adjusted book value per common share outstanding excluding URAD

 

 

 

333.70

 

 

 

 

 

266.64

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in BVPS adjusted for dividends

 

 

 

3.6

%

 

 

 

 

7.2

%

Total Shareholder Return ("TSR") - Annualized

 

 

 

18.1

%

 

 

 

 

14.1

%

Common share dividends paid - last 12 months

 

 

 

6.90

 

 

 

 

 

6.60

 

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

Q1

 

 

Year to Date

 

 

Q1

 

 

Year to Date

 

 

Year on Year Change

All values in USD millions except for percentages

2024

 

 

2024

 

 

2023

 

 

2023

 

 

Q1

 

 

Year to Date

 

Gross written premium

4,411

 

 

4,411

 

 

3,743

 

 

3,743

 

 

17.9

%

 

17.9

%

Net written premium

3,900

 

 

3,900

 

 

3,329

 

 

3,329

 

 

17.1

%

 

17.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss Ratio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current year

58.9

%

 

58.9

%

 

59.7

%

 

59.7

%

 

(0.8) pts

 

 

(0.8) pts

 

Prior year

%

 

%

 

%

 

%

 

— pts

 

 

— pts

 

Catastrophe

2.3

%

 

2.3

%

 

3.7

%

 

3.7

%

 

(1.4) pts

 

 

(1.4) pts

 

Total Loss ratio

61.3

%

 

61.3

%

 

63.4

%

 

63.4

%

 

(2.1) pts

 

 

(2.1) pts

 

Commission and brokerage ratio

21.4

%

 

21.4

%

 

21.3

%

 

21.3

%

 

0.1 pts

 

 

0.1 pts

 

Other underwriting expenses

6.1

%

 

6.1

%

 

6.4

%

 

6.4

%

 

(0.3) pts

 

 

(0.3) pts

 

Combined ratio

88.8

%

 

88.8

%

 

91.2

%

 

91.2

%

 

(2.4) pts

 

 

(2.4) pts

 

Attritional combined ratio (1)

86.5

%

 

86.5

%

 

87.6

%

 

87.6

%

 

(1.1) pts

 

 

(1.1) pts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax net catastrophe losses (2)

85

 

 

85

 

 

110

 

 

110

 

 

 

 

 

 

 

Pre-tax net unfavorable (favorable) prior year reserve development

 

 

 

 

 

 

 

 

 

 

 

 

 
     

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 20.4% on a constant dollar basis and excluding reinstatement premiums, to approximately $3.2 billion. Growth was broad-based across geographies and lines as the flight to quality continues to accelerate globally.
  • Attritional loss ratio improved 80 basis points over last year to 57.2%, while the attritional combined ratio improved 150 basis points to 84.4% versus a year ago.
  • Combined ratio improved 350 basis points over the last year to 87.3%.
  • Pre-tax catastrophe losses were $80 million net of estimated recoveries and reinstatement premiums, driven primarily by the Baltimore Bridge Collapse.
  • Risk-adjusted returns remain very attractive, particularly in property and specialty lines.

Underwriting information - Reinsurance segment

Q1

 

 

Year to Date

 

 

Q1

 

 

Year to Date

 

 

Year on Year Change

All values in USD millions except for percentages

2024

 

 

2024

 

 

2023

 

 

2023

 

 

Q1

 

 

Year to Date

 

Gross written premium

3,175

 

 

3,175

 

 

2,620

 

 

2,620

 

 

21.2

%

 

21.2

%

Net written premium

2,942

 

 

2,942

 

 

2,438

 

 

2,438

 

 

20.7

%

 

20.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss Ratio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current year

57.2

%

 

57.2

%

 

57.9

%

 

57.9

%

 

(0.7) pts

 

 

(0.7) pts

 

Prior year

%

 

%

 

%

 

%

 

— pts

 

 

— pts

 

Catastrophe

2.9

%

 

2.9

%

 

5.1

%

 

5.1

%

 

(2.2) pts

 

 

(2.2) pts

 

Total Loss ratio

60.2

%

 

60.2

%

 

63.0

%

 

63.0

%

 

(2.8) pts

 

 

(2.8) pts

 

Commission and brokerage ratio

24.6

%

 

24.6

%

 

25.0

%

 

25.0

%

 

(0.4) pts

 

 

(0.4) pts

 

Other underwriting expenses

2.6

%

 

2.6

%

 

2.8

%

 

2.8

%

 

(0.2) pts

 

 

(0.2) pts

 

Combined ratio

87.3

%

 

87.3

%

 

90.8

%

 

90.8

%

 

(3.5) pts

 

 

(3.5) pts

 

Attritional combined ratio (1)

84.4

%

 

84.4

%

 

85.9

%

 

85.9

%

 

(1.5) pts

 

 

(1.5) pts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax net catastrophe losses (2)

80

 

 

80

 

 

108

 

 

108

 

 

 

 

 

 

 

Pre-tax net prior year reserve development

 

 

 

 

 

 

 

 

 

 

 

 

 
 

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 $1.2 billion, a 9.8% increase year-over-year in constant dollars, driven by a diversified mix of property and specialty lines, partially offset by lower written premiums in monoline workers' compensation and financial lines.
  • Loss ratio improved 10 basis points over last year to 64.5%, while the attritional loss ratio improved 40 basis points over last year to 64.0%.
  • Pre-tax catastrophe losses were $5 million, net of estimated recoveries and reinstatement premiums, relatively in-line with the prior year.
  • Pricing continues to exceed loss trend overall and loss trend is stable.
  • There was a meaningful acceleration in pricing across long-tail lines (excluding financial lines).

Underwriting information - Insurance segment

Q1

 

 

Year to Date

 

 

Q1

 

 

Year to Date

 

 

Year on Year Change

All values in USD millions except for percentages

2024

 

 

2024

 

 

2023

 

 

2023

 

 

Q1

 

 

Year to Date

 

Gross written premium

1,236

 

 

1,236

 

 

1,122

 

 

1,122

 

 

10.1

%

 

10.1

%

Net written premium

958

 

 

958

 

 

891

 

 

891

 

 

7.5

%

 

7.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss Ratio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current year

64.0

%

 

64.0

%

 

64.4

%

 

64.4

%

 

(0.4) pts

 

 

(0.4) pts

 

Prior year

%

 

%

 

%

 

%

 

— pts

 

 

— pts

 

Catastrophe

0.5

%

 

0.5

%

 

0.2

%

 

0.2

%

 

0.3 pts

 

 

0.3 pts

 

Total Loss ratio

64.5

%

 

64.5

%

 

64.6

%

 

64.6

%

 

(0.1) pts

 

 

(0.1) pts

 

Commission and brokerage ratio

12.0

%

 

12.0

%

 

12.0

%

 

12.0

%

 

— pts

 

 

— pts

 

Other underwriting expenses

16.6

%

 

16.6

%

 

15.6

%

 

15.6

%

 

1.0 pts

 

 

1.0 pts

 

Combined ratio

93.1

%

 

93.1

%

 

92.3

%

 

92.3

%

 

0.8 pts

 

 

0.8 pts

 

Attritional combined ratio (1)

92.5

%

 

92.5

%

 

92.0

%

 

92.0

%

 

0.5 pts

 

 

0.5 pts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax net catastrophe losses (2)

5

 

 

5

 

 

2

 

 

2

 

 

 

 

 

 

 

Pre-tax net prior year reserve development

 

 

 

 

 

 

 

 

 

 

 

 

 
 

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 March 31, 2024

  • Total invested assets and cash of $38.1 billion versus $37.1 billion on December 31, 2023
  • Shareholders’ equity of $13.6 billion vs. $13.2 billion on December 31, 2023, including $876 million of unrealized net losses on AFS fixed maturity investments
  • Shareholders’ equity excluding unrealized gains (losses) on AFS fixed maturity investments of $14.5 billion versus $13.9 billion on December 31, 2023
  • Book value per share of $313.55 versus $304.29 at December 31, 2023
  • Book value per share excluding unrealized gains (losses) on AFS fixed maturity investments of $333.70 versus $320.95 at December 31, 2023
  • Common share repurchases of $35.0 million during the quarter, representing 90,291 shares at an average price of $387.64 per share
  • Common share dividends declared and paid in the quarter of $1.75 per share equal to $76 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 involve risks and uncertainties that could cause actual results to differ materially from those contained in forward-looking statements made on behalf of the Company. These risks and uncertainties include 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 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 April 30, 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 March 31,

 

Three Months Ended March 31,

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amount

 

Per Diluted Share

 

Amount

 

Per Diluted Share

 

Amount

 

Per Diluted Share

 

Amount

 

Per Diluted Share

After-tax operating income (loss)

$

709

 

 

$

16.32

 

 

$

443

 

 

$

11.31

 

 

$

709

 

 

$

16.32

 

 

$

443

 

 

$

11.31

 

After-tax net gains (losses) on investments

 

(6

)

 

 

(0.13

)

 

 

6

 

 

 

0.14

 

 

 

(6

)

 

 

(0.13

)

 

 

6

 

 

 

0.14

 

After-tax net foreign exchange income (expense)

 

30

 

 

 

0.69

 

 

 

(84

)

 

 

(2.14

)

 

 

30

 

 

 

0.69

 

 

 

(84

)

 

 

(2.14

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

733

 

 

$

16.87

 

 

$

365

 

 

$

9.31

 

 

$

733

 

 

$

16.87

 

 

$

365

 

 

$

9.31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Some amounts may not reconcile due to rounding.)

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 March 31,

(In millions of U.S. dollars, except per share amounts)

 

2024

 

 

 

2023

 

 

(unaudited)

REVENUES:

 

 

 

Premiums earned

$

3,652

 

 

$

3,100

 

Net investment income

 

457

 

 

 

260

 

Total net gains (losses) on investments

 

(7

)

 

 

5

 

Other income (expense)

 

31

 

 

 

(79

)

Total revenues

 

4,133

 

 

 

3,286

 

 

 

 

 

CLAIMS AND EXPENSES:

 

 

 

Incurred losses and loss adjustment expenses

 

2,237

 

 

 

1,966

 

Commission, brokerage, taxes and fees

 

782

 

 

 

661

 

Other underwriting expenses

 

224

 

 

 

200

 

Corporate expenses

 

22

 

 

 

19

 

Interest, fees and bond issue cost amortization expense

 

37

 

 

 

32

 

Total claims and expenses

 

3,302

 

 

 

2,878

 

 

 

 

 

INCOME (LOSS) BEFORE TAXES

 

832

 

 

 

408

 

Income tax expense (benefit)

 

99

 

 

 

43

 

 

 

 

 

NET INCOME (LOSS)

$

733

 

 

$

365

 

 

 

 

 

Other comprehensive income (loss), net of tax:

 

 

 

Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period

 

(158

)

 

 

246

 

Reclassification adjustment for realized losses (gains) included in net income (loss)

 

5

 

 

 

3

 

Total URA(D) on securities arising during the period

 

(153

)

 

 

249

 

 

 

 

 

Foreign currency translation adjustments

 

(38

)

 

 

31

 

 

 

 

 

Reclassification adjustment for amortization of net (gain) loss included in net income (loss)

 

 

 

 

 

Total benefit plan net gain (loss) for the period

 

 

 

 

 

Total other comprehensive income (loss), net of tax

 

(191

)

 

 

280

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS)

$

542

 

 

$

645

 

 

 

 

 

EARNINGS PER COMMON SHARE:

 

 

 

Basic

$

16.87

 

 

$

9.31

 

Diluted

 

16.87

 

 

 

9.31

 

 

EVEREST GROUP, LTD.

CONSOLIDATED BALANCE SHEETS

 
 

 

March 31,

 

December 31,

(In millions of U.S. dollars, except par value per share)

 

2024

 

 

 

2023

 

 

(unaudited)

 

 

ASSETS:

 

 

 

Fixed maturities - available for sale, at fair value

 

 

 

(amortized cost: 2024, $29,311; 2023, $28,568, credit allowances: 2024, $(46); 2023, $(48))

$

28,297

 

 

$

27,740

 

Fixed maturities - held to maturity, at amortized cost

 

 

 

(fair value: 2024, $842; 2023, $854, net of credit allowances: 2024, $(9); 2023, $(8))

 

840

 

 

 

855

 

Equity securities, at fair value

 

216

 

 

 

188

 

Other invested assets

 

4,854

 

 

 

4,794

 

Short-term investments

 

2,397

 

 

 

2,127

 

Cash

 

1,544

 

 

 

1,437

 

Total investments and cash

 

38,148

 

 

 

37,142

 

Accrued investment income

 

327

 

 

 

324

 

Premiums receivable (net of credit allowances: 2024, $(43); 2023, $(41))

 

5,101

 

 

 

4,768

 

Reinsurance paid loss recoverables (net of credit allowances: 2024, $(27); 2023, $(26))

 

233

 

 

 

164

 

Reinsurance unpaid loss recoverables

 

2,084

 

 

 

2,098

 

Funds held by reinsureds

 

1,155

 

 

 

1,135

 

Deferred acquisition costs

 

1,331

 

 

 

1,247

 

Prepaid reinsurance premiums

 

702

 

 

 

713

 

Income tax asset, net

 

823

 

 

 

868

 

Other assets (net of credit allowances: 2024, $(10); 2023, $(9))

 

1,033

 

 

 

941

 

TOTAL ASSETS

$

50,937

 

 

$

49,399

 

 

 

 

 

LIABILITIES:

 

 

 

Reserve for losses and loss adjustment expenses

 

25,211

 

 

 

24,604

 

Unearned premium reserve

 

6,826

 

 

 

6,622

 

Funds held under reinsurance treaties

 

11

 

 

 

24

 

Amounts due to reinsurers

 

716

 

 

 

650

 

Losses in course of payment

 

168

 

 

 

171

 

Senior notes

 

2,349

 

 

 

2,349

 

Long-term notes

 

218

 

 

 

218

 

Borrowings from FHLB

 

819

 

 

 

819

 

Accrued interest on debt and borrowings

 

43

 

 

 

22

 

Unsettled securities payable

 

403

 

 

 

137

 

Other liabilities

 

543

 

 

 

582

 

Total liabilities

 

37,308

 

 

 

36,197

 

 

 

 

 

SHAREHOLDERS' EQUITY:

 

 

 

Preferred shares, par value: $0.01; 50.0 shares authorized; no shares issued and outstanding

 

 

 

 

 

Common shares, par value: $0.01; 200.0 shares authorized; (2024) 74.3 and (2023) 74.2

 

 

 

outstanding before treasury shares

 

1

 

 

 

1

 

Additional paid-in capital

 

3,768

 

 

 

3,773

 

Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit)

 

 

 

of $(137) at 2024 and $(99) at 2023

 

(1,125

)

 

 

(934

)

Treasury shares, at cost; 30.9 shares (2024) and 30.8 shares (2023)

 

(3,943

)

 

 

(3,908

)

Retained earnings

 

14,927

 

 

 

14,270

 

Total shareholders' equity

 

13,628

 

 

 

13,202

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

50,937

 

 

$

49,399

 

 

 

 

 

EVEREST GROUP, LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

 
 

 

Three Months Ended March 31,

(In millions of U.S. dollars)

 

2024

 

 

 

2023

 

 

(unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

Net income (loss)

$

733

 

 

$

365

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Decrease (increase) in premiums receivable

 

(370

)

 

 

(259

)

Decrease (increase) in funds held by reinsureds, net

 

(33

)

 

 

(17

)

Decrease (increase) in reinsurance recoverables

 

(129

)

 

 

7

 

Decrease (increase) in income taxes

 

82

 

 

 

41

 

Decrease (increase) in prepaid reinsurance premiums

 

(14

)

 

 

28

 

Increase (decrease) in reserve for losses and loss adjustment expenses

 

720

 

 

 

681

 

Increase (decrease) in unearned premiums

 

242

 

 

 

226

 

Increase (decrease) in amounts due to reinsurers

 

95

 

 

 

17

 

Increase (decrease) in losses in course of payment

 

 

 

 

47

 

Change in equity adjustments in limited partnerships

 

(59

)

 

 

(5

)

Distribution of limited partnership income

 

31

 

 

 

48

 

Change in other assets and liabilities, net

 

(188

)

 

 

(121

)

Non-cash compensation expense

 

16

 

 

 

12

 

Amortization of bond premium (accrual of bond discount)

 

(30

)

 

 

(1

)

Net (gains) losses on investments

 

7

 

 

 

(5

)

Net cash provided by (used in) operating activities

 

1,102

 

 

 

1,064

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

Proceeds from fixed maturities matured/called/repaid - available for sale

 

736

 

 

 

562

 

Proceeds from fixed maturities sold - available for sale

 

407

 

 

 

72

 

Proceeds from fixed maturities matured/called/repaid - held to maturity

 

45

 

 

 

28

 

Proceeds from equity securities sold

 

 

 

 

46

 

Distributions from other invested assets

 

100

 

 

 

137

 

Cost of fixed maturities acquired - available for sale

 

(1,971

)

 

 

(1,613

)

Cost of fixed maturities acquired - held to maturity

 

(27

)

 

 

(11

)

Cost of equity securities acquired

 

(33

)

 

 

(1

)

Cost of other invested assets acquired

 

(138

)

 

 

(242

)

Net change in short-term investments

 

(252

)

 

 

4

 

Net change in unsettled securities transactions

 

284

 

 

 

267

 

Net cash provided by (used in) investing activities

 

(849

)

 

 

(752

)

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

Common shares issued (redeemed) during the period for share-based compensation, net of expense

 

(21

)

 

 

(19

)

Purchase of treasury shares

 

(35

)

 

 

 

Dividends paid to shareholders

 

(76

)

 

 

(65

)

Cost of shares withheld on settlements of share-based compensation awards

 

(21

)

 

 

(19

)

Net cash provided by (used in) financing activities

 

(153

)

 

 

(103

)

 

 

 

 

EFFECT OF EXCHANGE RATE CHANGES ON CASH

 

7

 

 

 

3

 

 

 

 

 

Net increase (decrease) in cash

 

107

 

 

 

212

 

Cash, beginning of period

 

1,437

 

 

 

1,398

 

Cash, end of period

$

1,544

 

 

$

1,610

 

 

 

 

 

SUPPLEMENTAL CASH FLOW INFORMATION:

 

 

 

Income taxes paid (recovered)

$

16

 

 

$

2

 

Interest paid

 

16

 

 

 

10

 

 

Media: Dawn Lauer Chief Communications Officer 908.300.7670

Investors: Matt Rohrmann Head of Investor Relations 908.604.7343

Source: Everest Group, Ltd.

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