(State or other jurisdiction | (Commission | (IRS Employer | ||||||
of incorporation) | File Number) | Identification No.) | ||||||
(Address of principal executive offices) | (Zip Code) |
Not Applicable |
Class | Trading Symbol(s) | Name of Exchange where registered | ||||||||||||
(c) | Exhibits | ||||||||||
Exhibit No. | Description | ||||||||||
99.1 | News Release of the registrant, dated October 25, 2023 |
EVEREST GROUP, LTD. | ||||||||
By: | /S/ ROBERT J. FREILING | |||||||
Robert J. Freiling Senior Vice President and Chief Accounting Officer | ||||||||
Dated: October 25, 2023 |
Exhibit Number | Description of Document | Page No. | ||||||||||||
5 | ||||||||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document |
NEWS RELEASE | ||||||||
EVEREST GROUP, LTD. | ||||||||
Seon place, 141 Front Street, 4th Floor, Hamilton HM 19, Bermuda | ||||||||
Contacts | ||||||||
Media: Dawn Lauer | Investors: Matt Rohrmann | |||||||
Chief Communications Officer | Head of Investor Relations | |||||||
908.300.7670 | 908.604.7343 |
Net income and operating income | Q3 | Year to Date | Q3 | Year to Date | |||||||||||||||||||
All values in USD millions except for per share amounts and percentages | 2023 | 2023 | 2022 | 2022 | |||||||||||||||||||
Everest Group | |||||||||||||||||||||||
Net income (loss) | 678 | 1,713 | (319) | 101 | |||||||||||||||||||
Operating income (loss) (1) | 613 | 1,684 | (205) | 587 | |||||||||||||||||||
Net income (loss) per diluted common share | 15.63 | 41.49 | (8.22) | 2.57 | |||||||||||||||||||
Net operating income (loss) per diluted common share | 14.14 | 40.77 | (5.28) | 14.91 | |||||||||||||||||||
Net income (loss) return on average equity (annualized) | 21.2% | 19.7% | (12.9%) | 1.4% | |||||||||||||||||||
After-tax operating income (loss) return on average equity (annualized) | 19.2% | 19.3% | (8.3%) | 8.0% |
Shareholders' Equity and Book Value per Share | Q3 | Year to Date | Q3 | Year to Date | |||||||||||||||||||
All values in USD millions except for per share amounts and percentages | 2023 | 2023 | 2022 | 2022 | |||||||||||||||||||
Beginning shareholders' equity | 10,902 | 8,441 | 8,853 | 10,139 | |||||||||||||||||||
Net income (loss) | 678 | 1,713 | (319) | 101 | |||||||||||||||||||
Change - unrealized gains (losses) - Fixed inc. investments | (242) | (159) | (671) | (2,199) | |||||||||||||||||||
Dividends to shareholders | (76) | (212) | (65) | (191) | |||||||||||||||||||
Purchase of treasury shares | — | — | (58) | (60) | |||||||||||||||||||
Public equity offering of shares | — | 1,445 | — | — | |||||||||||||||||||
Other | (37) | (1) | (91) | (141) | |||||||||||||||||||
Ending shareholders' equity | 11,226 | 11,226 | 7,649 | 7,649 | |||||||||||||||||||
Common shares outstanding | 43.4 | 39.2 | |||||||||||||||||||||
Book value per common share outstanding | 258.71 | 195.27 | |||||||||||||||||||||
Less: Unrealized appreciation/depreciation of fixed maturity investments ("URAD") | (43.06) | (50.02) | |||||||||||||||||||||
Adjusted book value per common share outstanding excluding URAD | 301.76 | 245.29 | |||||||||||||||||||||
Change in BVPS adjusted for dividends | 22.4% | (22.5)% | |||||||||||||||||||||
Total Shareholder Return ("TSR") - Annualized | 24.5% | -1.0% | |||||||||||||||||||||
Common share dividends paid - last 12 months | 6.70 | 6.40 |
Underwriting information - Everest Group | Q3 | Year to Date | Q3 | Year to Date | Year on Year Change | ||||||||||||||||||||||||||||||
All values in USD millions except for percentages | 2023 | 2023 | 2022 | 2022 | Q3 | Year to Date | |||||||||||||||||||||||||||||
Gross written premium | 4,391 | 12,314 | 3,680 | 10,313 | 19.3% | 19.4% | |||||||||||||||||||||||||||||
Net written premium | 3,866 | 10,870 | 3,323 | 9,156 | 16.4% | 18.7% | |||||||||||||||||||||||||||||
Loss ratio | 63.9% | 62.6% | 85.5% | 71.7% | (21.6) pts | (9.1) pts | |||||||||||||||||||||||||||||
Commission and brokerage ratio | 21.4% | 21.3% | 20.9% | 21.4% | 0.5 pts | (0.1) pts | |||||||||||||||||||||||||||||
Other underwriting expenses | 6.1% | 6.3% | 5.5% | 5.7% | 0.6 pts | 0.6 pts | |||||||||||||||||||||||||||||
Combined ratio | 91.4% | 90.1% | 112.0% | 98.8% | (20.5) pts | (8.6) pts | |||||||||||||||||||||||||||||
Attritional combined ratio (1) | 86.5% | 86.9% | 87.6% | 87.4% | (1.1) pts | (0.5) pts | |||||||||||||||||||||||||||||
Pre-tax net catastrophe losses (2) | 170 | 307 | 730 | 930 | |||||||||||||||||||||||||||||||
Pre-tax net Russia/Ukraine losses | — | — | — | 45 | |||||||||||||||||||||||||||||||
Pre-tax net prior year reserve development | — | — | — | (2) |
Underwriting information - Reinsurance segment | Q3 | Year to Date | Q3 | Year to Date | Year on Year Change | ||||||||||||||||||||||||||||||
All values in USD millions except for percentages | 2023 | 2023 | 2022 | 2022 | Q3 | Year to Date | |||||||||||||||||||||||||||||
Gross written premium | 3,219 | 8,622 | 2,551 | 6,938 | 26.2% | 24.3% | |||||||||||||||||||||||||||||
Net written premium | 3,008 | 8,101 | 2,460 | 6,664 | 22.3% | 21.6% | |||||||||||||||||||||||||||||
Loss ratio | 63.7% | 61.9% | 88.7% | 72.8% | (25.0) pts | (10.9) pts | |||||||||||||||||||||||||||||
Commission and brokerage ratio | 24.8% | 24.8% | 23.9% | 24.5% | 0.9 pts | 0.3 pts | |||||||||||||||||||||||||||||
Other underwriting expenses | 2.5% | 2.6% | 2.4% | 2.4% | 0.1 pts | 0.2 pts | |||||||||||||||||||||||||||||
Combined ratio | 91.0% | 89.2% | 115.0% | 99.8% | (24.0) pts | (10.6) pts | |||||||||||||||||||||||||||||
Attritional combined ratio (1) | 84.9% | 85.1% | 86.8% | 86.3% | (1.9) pts | (1.2) pts | |||||||||||||||||||||||||||||
Pre-tax net catastrophe losses (2) | 160 | 295 | 620 | 810 | |||||||||||||||||||||||||||||||
Pre-tax net Russia/Ukraine losses | — | — | — | 45 | |||||||||||||||||||||||||||||||
Pre-tax net prior year reserve development | — | — | — | (2) |
Underwriting information - Insurance segment | Q3 | Year to Date | Q3 | Year to Date | Year on Year Change | ||||||||||||||||||||||||||||||
All values in USD millions except for percentages | 2023 | 2023 | 2022 | 2022 | Q3 | Year to Date | |||||||||||||||||||||||||||||
Gross written premium | 1,172 | 3,692 | 1,129 | 3,376 | 3.8% | 9.4% | |||||||||||||||||||||||||||||
Net written premium | 858 | 2,768 | 862 | 2,492 | (0.4)% | 11.1% | |||||||||||||||||||||||||||||
Loss ratio | 64.4% | 64.5% | 76.8% | 68.4% | (12.4) pts | (3.9) pts | |||||||||||||||||||||||||||||
Commission and brokerage ratio | 11.5% | 11.7% | 12.7% | 12.7% | (1.2) pts | (1.0) pts | |||||||||||||||||||||||||||||
Other underwriting expenses | 16.7% | 16.3% | 14.0% | 14.8% | 2.7 pts | 1.5 pts | |||||||||||||||||||||||||||||
Combined ratio | 92.6% | 92.6% | 103.5% | 95.9% | (10.9) pts | (3.3) pts | |||||||||||||||||||||||||||||
Attritional combined ratio (1) | 91.0% | 91.6% | 89.8% | 90.3% | 1.2 pts | 1.3 pts | |||||||||||||||||||||||||||||
Pre-tax net catastrophe losses (2) | 10 | 12 | 110 | 120 | |||||||||||||||||||||||||||||||
Pre-tax net Russia/Ukraine losses | — | — | — | — | |||||||||||||||||||||||||||||||
Pre-tax net prior year reserve development | — | — | — | 1 |
(Dollars in millions, except per share amounts) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||
Amount | Per Diluted Share | Amount | Per Diluted Share | Amount | Per Diluted Share | Amount | Per Diluted Share | ||||||||||||||||||||||||||||||||||||||||
After-tax operating income (loss) | $ | 613 | $ | 14.14 | $ | (205) | $ | (5.28) | $ | 1,684 | $ | 40.77 | $ | 587 | $ | 14.91 | |||||||||||||||||||||||||||||||
After-tax net gains (losses) on investments | (27) | (0.61) | (102) | (2.63) | (17) | (0.40) | (415) | (10.53) | |||||||||||||||||||||||||||||||||||||||
After-tax net foreign exchange income (expense) | 91 | 2.10 | (12) | (0.31) | 46 | 1.12 | (71) | (1.80) | |||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 678 | $ | 15.63 | $ | (319) | $ | (8.22) | $ | 1,713 | $ | 41.49 | $ | 101 | $ | 2.57 | |||||||||||||||||||||||||||||||
(Some amounts may not reconcile due to rounding.) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(Dollars in millions, except per share amounts) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||||
REVENUES: | |||||||||||||||||||||||
Premiums earned | $ | 3,513 | $ | 3,067 | $ | 9,865 | $ | 8,775 | |||||||||||||||
Net investment income | 406 | 151 | 1,023 | 620 | |||||||||||||||||||
Total net gains (losses) on investments | (31) | (129) | (21) | (519) | |||||||||||||||||||
Other income (expense) | 103 | (16) | 61 | (71) | |||||||||||||||||||
Total revenues | 3,991 | 3,073 | 10,927 | 8,805 | |||||||||||||||||||
CLAIMS AND EXPENSES: | |||||||||||||||||||||||
Incurred losses and loss adjustment expenses | 2,246 | 2,623 | 6,173 | 6,289 | |||||||||||||||||||
Commission, brokerage, taxes and fees | 752 | 641 | 2,099 | 1,877 | |||||||||||||||||||
Other underwriting expenses | 215 | 169 | 620 | 500 | |||||||||||||||||||
Corporate expenses | 19 | 16 | 55 | 45 | |||||||||||||||||||
Interest, fees and bond issue cost amortization expense | 34 | 25 | 99 | 74 | |||||||||||||||||||
Total claims and expenses | 3,266 | 3,474 | 9,045 | 8,785 | |||||||||||||||||||
INCOME (LOSS) BEFORE TAXES | 725 | (401) | 1,883 | 20 | |||||||||||||||||||
Income tax expense (benefit) | 47 | (82) | 169 | (81) | |||||||||||||||||||
NET INCOME (LOSS) | $ | 678 | $ | (319) | $ | 1,713 | $ | 101 | |||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period | (257) | (712) | (180) | (2,260) | |||||||||||||||||||
Reclassification adjustment for realized losses (gains) included in net income (loss) | 15 | 41 | 21 | 61 | |||||||||||||||||||
Total URA(D) on securities arising during the period | (242) | (671) | (159) | (2,199) | |||||||||||||||||||
Foreign currency translation adjustments | (47) | (101) | (17) | (163) | |||||||||||||||||||
Reclassification adjustment for amortization of net (gain) loss included in net income (loss) | — | 1 | 1 | 2 | |||||||||||||||||||
Total benefit plan net gain (loss) for the period | — | 1 | 1 | 2 | |||||||||||||||||||
Total other comprehensive income (loss), net of tax | (288) | (771) | (175) | (2,360) | |||||||||||||||||||
COMPREHENSIVE INCOME (LOSS) | $ | 390 | $ | (1,090) | $ | 1,538 | $ | (2,259) | |||||||||||||||
EARNINGS PER COMMON SHARE: | |||||||||||||||||||||||
Basic | $ | 15.63 | $ | (8.22) | $ | 41.49 | $ | 2.57 | |||||||||||||||
Diluted | $ | 15.63 | $ | (8.22) | $ | 41.49 | $ | 2.57 |
September 30, | December 31, | ||||||||||
(Dollar and share amounts in millions, except par value per share) | 2023 | 2022 | |||||||||
(unaudited) | |||||||||||
ASSETS: | |||||||||||
Fixed maturities - available for sale, at fair value | |||||||||||
(amortized cost: 2023, $27,305; 2022, $24,191, credit allowances: 2023, $(60); 2022, $(54)) | $ | 25,159 | $ | 22,236 | |||||||
Fixed maturities - held to maturity, at amortized cost | |||||||||||
(fair value: 2023, $766; 2022, $821, net of credit allowances: 2023, $(8); 2022, $(9)) | 789 | 839 | |||||||||
Equity securities, at fair value | 166 | 281 | |||||||||
Other invested assets | 4,353 | 4,085 | |||||||||
Short-term investments | 2,403 | 1,032 | |||||||||
Cash | 1,765 | 1,398 | |||||||||
Total investments and cash | 34,635 | 29,872 | |||||||||
Accrued investment income | 298 | 217 | |||||||||
Premiums receivable (net of credit allowances: 2023, $(36); 2022, $(29)) | 4,426 | 3,619 | |||||||||
Reinsurance paid loss recoverables (net of credit allowances: 2023, $(25); 2022, $(23)) | 226 | 136 | |||||||||
Reinsurance unpaid loss recoverables | 2,196 | 2,105 | |||||||||
Funds held by reinsureds | 1,097 | 1,056 | |||||||||
Deferred acquisition costs | 1,156 | 962 | |||||||||
Prepaid reinsurance premiums | 756 | 610 | |||||||||
Income tax asset, net | 500 | 459 | |||||||||
Other assets (net of credit allowances: 2023, $(8); 2022, $(5)) | 1,029 | 930 | |||||||||
TOTAL ASSETS | $ | 46,318 | $ | 39,966 | |||||||
LIABILITIES: | |||||||||||
Reserve for losses and loss adjustment expenses | 23,833 | 22,065 | |||||||||
Future policy benefit reserve | 27 | 29 | |||||||||
Unearned premium reserve | 6,295 | 5,147 | |||||||||
Funds held under reinsurance treaties | 28 | 13 | |||||||||
Amounts due to reinsurers | 795 | 567 | |||||||||
Losses in course of payment | 330 | 74 | |||||||||
Senior notes | 2,348 | 2,347 | |||||||||
Long-term notes | 218 | 218 | |||||||||
Borrowings from FHLB | 519 | 519 | |||||||||
Accrued interest on debt and borrowings | 41 | 19 | |||||||||
Unsettled securities payable | 200 | 1 | |||||||||
Other liabilities | 459 | 526 | |||||||||
Total liabilities | 35,092 | 31,526 | |||||||||
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; (2023) 74.2 and (2022) 69.9 | |||||||||||
outstanding before treasury shares | 1 | 1 | |||||||||
Additional paid-in capital | 3,762 | 2,302 | |||||||||
Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) | |||||||||||
of $(272) at 2023 and $(250) at 2022 | (2,171) | (1,996) | |||||||||
Treasury shares, at cost; 30.8 shares (2023) and 30.8 shares (2022) | (3,908) | (3,908) | |||||||||
Retained earnings | 13,542 | 12,042 | |||||||||
Total shareholders' equity | $ | 11,226 | $ | 8,441 | |||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 46,318 | $ | 39,966 |
Nine Months Ended September 30, | |||||||||||
(Dollars in millions) | 2023 | 2022 | |||||||||
(unaudited) | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income (loss) | $ | 1,713 | $ | 101 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Decrease (increase) in premiums receivable | (812) | (405) | |||||||||
Decrease (increase) in funds held by reinsureds, net | (26) | (35) | |||||||||
Decrease (increase) in reinsurance recoverables | (186) | (662) | |||||||||
Decrease (increase) in income taxes | (18) | (249) | |||||||||
Decrease (increase) in prepaid reinsurance premiums | (153) | (194) | |||||||||
Increase (decrease) in reserve for losses and loss adjustment expenses | 1,768 | 3,117 | |||||||||
Increase (decrease) in future policy benefit reserve | (2) | (2) | |||||||||
Increase (decrease) in unearned premiums | 1,157 | 435 | |||||||||
Increase (decrease) in amounts due to reinsurers | 233 | 242 | |||||||||
Increase (decrease) in losses in course of payment | 258 | (150) | |||||||||
Change in equity adjustments in limited partnerships | (124) | (126) | |||||||||
Distribution of limited partnership income | 81 | 139 | |||||||||
Change in other assets and liabilities, net | (375) | (134) | |||||||||
Non-cash compensation expense | 37 | 35 | |||||||||
Amortization of bond premium (accrual of bond discount) | (35) | 49 | |||||||||
Net (gains) losses on investments | 21 | 519 | |||||||||
Net cash provided by (used in) operating activities | 3,536 | 2,680 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Proceeds from fixed maturities matured/called/repaid - available for sale | 1,686 | 2,171 | |||||||||
Proceeds from fixed maturities sold - available for sale | 468 | 1,177 | |||||||||
Proceeds from fixed maturities matured/called/repaid - held to maturity | 81 | 18 | |||||||||
Proceeds from equity securities sold | 126 | 1,030 | |||||||||
Distributions from other invested assets | 189 | 244 | |||||||||
Cost of fixed maturities acquired - available for sale | (5,311) | (5,958) | |||||||||
Cost of fixed maturities acquired - held to maturity | (23) | (133) | |||||||||
Cost of equity securities acquired | (3) | (960) | |||||||||
Cost of other invested assets acquired | (422) | (455) | |||||||||
Net change in short-term investments | (1,338) | 568 | |||||||||
Net change in unsettled securities transactions | 202 | 102 | |||||||||
Net cash provided by (used in) investing activities | (4,346) | (2,196) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Common shares issued (redeemed) during the period for share-based compensation, net of expense | (22) | (16) | |||||||||
Proceeds from public offering of common shares | 1,445 | — | |||||||||
Purchase of treasury shares | — | (60) | |||||||||
Dividends paid to shareholders | (212) | (191) | |||||||||
Cost of debt repurchase | — | (6) | |||||||||
Cost of shares withheld on settlements of share-based compensation awards | (22) | (19) | |||||||||
Net cash provided by (used in) financing activities | 1,188 | (292) | |||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (12) | 46 | |||||||||
Net increase (decrease) in cash | 367 | 238 | |||||||||
Cash, beginning of period | 1,398 | 1,441 | |||||||||
Cash, end of period | $ | 1,765 | $ | 1,679 | |||||||
SUPPLEMENTAL CASH FLOW INFORMATION: | |||||||||||
Income taxes paid (recovered) | $ | 185 | $ | 167 | |||||||
Interest paid | 75 | 51 | |||||||||
NON-CASH TRANSACTIONS: | |||||||||||
Reclassification of specific investments from fixed maturity securities, available for sale at fair value | |||||||||||
to fixed maturity securities, held to maturity at amortized cost net of credit allowances | $ | — | $ | 722 |
G
MR%H?C!XXC@$+%_VT(K
M\5/BC^V]\]?*631SZ4<
M^E !SZ4<^E'/I1SZ4 '/I7UG^QS_ ,%!O&O[+EY;Z-?//XH\ ,X\W19Y?WEK
MSR]LY^X>N8_NG]:^3.?2E+,>N3QCK0!_2_\ !OX[>#?V@/!%MXI\#ZS'K&FR
M%5FC3Y9[23&3%-&3E''OP>O*\UZ-7\Z7[&>N?%K3/CQH-G\';V2V\3W\RI+"
MV6LIH =SF[4<&%1RQQE>J_-BOZ([7SX[6$74BR3[1YCQ(5#-WPO) H M4444
M %
Cover |
Oct. 25, 2023 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Oct. 25, 2023 |
Entity Registrant Name | Everest Group, Ltd. |
Entity Incorporation, State or Country Code | D0 |
Entity File Number | 1-15731 |
Entity Tax Identification Number | 98-0365432 |
Entity Address, Address Line One | Seon Place – 4th Floor |
Entity Address, Address Line Two | 141 Front Street |
Entity Address, Address Line Three | PO Box HM 845 |
Entity Address, City or Town | Hamilton |
Entity Address, Country | BM |
Entity Address, Postal Zip Code | HM 19 |
City Area Code | 441 |
Local Phone Number | 295-0006 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Shares, $0.01 par value |
Trading Symbol | EG |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Amendment Flag | false |
Entity Central Index Key | 0001095073 |
-8?20$3;8T.P6BP^0"X99K>]9!:G
A'BPD,]EX
MV]45P?S#+9V>+EWFGC .R%M#,5>U]ZW:43=S:'DIGY>#;+TT
MX18'<^JG9$+'"HH.C)[0L1];M.&!U"7G-EO(U4SG.KI0NH)(V3.$TNU"J4M_
MIG0.6XHDFPO#JDI=4W2'+_3,O:J6#6VA@CHY:@Q,:TMD,:M R-IK7+("WUHW
M/Z=V!!YRD4<0]+)!C5=0YV@C4"