Financial Data and Key Metrics Changes - Everest Group Ltd. achieved record annual results in 2023, with annual operating income and net income both exceeding $2.5 billion, representing a 21% growth in constant dollars, ending the year at nearly $17 billion in gross written premium [15][8][47] - Operating earnings per share reached $66.39, with an operating return on equity of 23.1% and a total shareholder return of 26.5% [8][15] - Book value per share improved by 44.3% from year-end 2022, ending the quarter at $304.29, and excluding net unrealized depreciation, it stood at $320.95, a 23.8% increase [25][15] Business Line Data and Key Metrics Changes - Reinsurance gross written premiums grew by 21.9% in constant dollars, driven by double-digit increases in various property lines, with a combined ratio of 78.8%, an improvement of 8 points from the prior year [9][15] - The attritional loss ratio improved to 62.6%, primarily due to a higher proportion of short tail lines within the portfolio [10][15] - The core portfolio achieved a broad-based 12% rate increase, with particularly strong pricing in marine, commercial auto, and general liability lines [6][15] Market Data and Key Metrics Changes - Market conditions remain strong, with no significant new capacity entering the market, leading to excellent conditions for upcoming renewals [4][15] - The company capitalized on the hard market to grow in attractive lines across its businesses, particularly in Property Cat globally [14][47] Company Strategy and Development Direction - The company is focused on disciplined international strategy, expanding its insurance platform across various regions, including Latin America, the UK, and Asia Pacific [18][15] - Everest aims to drive sustainable margin expansion while distinguishing itself as a preferred lead market platform [17][15] - The company has shifted to shorter tail lines with favorable pricing and a strong profit trajectory, enhancing its underwriting guidelines and risk selection parameters [7][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong overall reserve position and the ability to manage social inflation risks effectively [57][15] - The company anticipates continued excellent market conditions for upcoming renewals throughout 2024, supported by its capital strength and underwriting diversification [47][15] - Management highlighted the importance of maintaining a disciplined approach to underwriting and risk selection to ensure profitability [46][15] Other Important Information - The company recorded a net investment income increase of over $200 million year-over-year, totaling $411 million for the quarter, driven by higher assets under management and new money yields [23][15] - Everest successfully executed a strategy to sell lower yielding bonds, resulting in after-tax realized fixed income losses of approximately $210 million, while reinvesting in higher coupon bonds [51][15] Q&A Session Summary Question: Concerns about reserve strengthening in insurance - Management clarified that the reserve adjustments were primarily related to general liability and that they have been conservative in their loss picks since 2021, ensuring confidence in the current reserve levels [28][57] Question: Sustainability of pricing and terms in the reinsurance market - Management indicated that the market remains strong due to a persistent gap between supply and demand, with no significant new capital formation, which supports the sustainability of pricing [107][15] Question: Impact of social inflation on future objectives - Management expressed confidence in achieving their objectives despite potential social inflation pressures, citing a well-diversified portfolio and prudent risk management practices [116][15]

Everest Group, Ltd.’s (EG) fourth-quarter 2023 operating income of $25.18 per share beat the Zacks Consensus Estimate by 72.1%. The bottom line doubled year over year.Everest Group witnessed higher premiums across its reinsurance and insurance businesses and improved net investment income. Higher expenses and lower underwriting income partially offset the upside.Operational UpdateEverest Group’s total operating revenues of nearly $3.65 billion increased 12.3% year over year on higher premiums earned and net ...

For the quarter ended December 2023, Everest Group (EG) reported revenue of $3.66 billion, up 14.6% over the same period last year. EPS came in at $25.18, compared to $12.21 in the year-ago quarter.The reported revenue represents a surprise of -8.66% over the Zacks Consensus Estimate of $4.01 billion. With the consensus EPS estimate being $14.63, the EPS surprise was +72.11%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Stree ...

Everest Group (EG) came out with quarterly earnings of $25.18 per share, beating the Zacks Consensus Estimate of $14.63 per share. This compares to earnings of $12.21 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 72.11%. A quarter ago, it was expected that this reinsurance company would post earnings of $10.18 per share when it actually produced earnings of $14.14, delivering a surprise of 38.90%.Over the last four quarters, ...

Amidst the bustle of large tech giants taking up the artificial intelligence (AI) space and news headlines of leading pharmaceutical juggernauts marking key development milestones, many quality stocks can easily fly under an investor’s radar. Whether those are smaller companies producing innovative solutions or undervalued companies slowly working toward profitability, there lay hundreds of opportunities for investors that many investors have glazed over.While these so-called sleeper stocks do carry more in ...

Everest Group, Ltd. (EG) is slated to report fourth-quarter 2023 earnings on Feb 7, after market close. The insurer delivered an earnings surprise in three of the last four quarters and missed in one, the average being 24.5%.Factors to ConsiderPremium growth is likely to have been driven by the solid performance of its Reinsurance segment, rate increases, exposure growth and strong underwriting. We expect net written premium to increase 8.3% to $3.4 billion in the fourth quarter.The Insurance segment is lik ...

Analysts on Wall Street project that Everest Group (EG) will announce quarterly earnings of $14.63 per share in its forthcoming report, representing an increase of 19.8% year over year. Revenues are projected to reach $4.01 billion, increasing 25.5% from the same quarter last year.The current level reflects a downward revision of 0.3% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projecti ...

Everest Group (EG) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on February 7, 2024, might help the stock move higher if these key numbers are better tha ...

Premiums and Revenues - Gross written premiums increased by 19.3% to $4.4 billion for the three months ended September 30, 2023, compared to $3.7 billion for the same period in 2022[111] - Net written premiums rose by 16.4% to $3.9 billion for the three months ended September 30, 2023, compared to $3.3 billion for the same period in 2022[113] - Total revenues increased by 29.9% to $3.99 billion for the three months ended September 30, 2023, compared to $3.07 billion for the same period in 2022[110] - Gross written premiums increased by 26.2% to $3.2 billion for the three months ended September 30, 2023, compared to $2.6 billion for the same period in 2022[146] - Net written premiums rose by 22.3% to $3.0 billion for the three months ended September 30, 2023, from $2.5 billion in the prior year[146] - Premiums earned increased by 16.4% to $2.6 billion for the three months ended September 30, 2023, compared to $2.2 billion for the same period in 2022[146] - Gross written premiums for the nine months ended September 30, 2023, increased by 24.3% to $8.6 billion from $6.9 billion in the same period of 2022[147] - Net written premiums for the nine months ended September 30, 2023, increased by 21.6% to $8.1 billion compared to $6.7 billion for the same period in 2022[147] - Premiums earned for the nine months ended September 30, 2023, increased by 12.2% to $7.2 billion from $6.5 billion in the prior year[147] Investment Income - Net investment income surged to $406 million for the three months ended September 30, 2023, compared to $151 million for the same period in 2022, marking a significant increase[110] - Net investment income increased by 64.9% to $1.0 billion for the nine months ended September 30, 2023, compared to $620 million for the same period in 2022[131] - The annualized pre-tax yield on average cash and invested assets was 4.5% for the three months ended September 30, 2023, compared to 2.0% for the same period in 2022[134] - Total investments rose to $32.9 billion at September 30, 2023, an increase of $4.4 billion from $28.5 billion at December 31, 2022, mainly due to a net purchase of $3.2 billion in fixed maturities[164] - The investment portfolio totaled $34.6 billion as of September 30, 2023, primarily comprised of fixed maturity securities[192] Loss Ratios and Underwriting Performance - The loss ratio improved to 63.9% for the three months ended September 30, 2023, down from 85.5% in the same period of 2022, reflecting better claims management[110] - The combined ratio improved to 91.4% for the three months ended September 30, 2023, down from 112.0% in the same period of 2022, indicating enhanced operational efficiency[110] - The combined ratio improved by 20.5 points to 91.4% for the three months ended September 30, 2023, compared to 112.0% for the same period in 2022[128] - The underwriting gain for the three months ended September 30, 2023, was $234 million, a significant improvement from a loss of $338 million in the same period of 2022[146] - The combined ratio improved to 91.0% for the three months ended September 30, 2023, down from 115.0% in the prior year[146] - The loss ratio decreased to 63.7% for the three months ended September 30, 2023, compared to 88.7% for the same period in 2022[146] - The combined ratio improved to 92.6% for the three months ended September 30, 2023, down from 103.5% for the same period in 2022, indicating better underwriting performance[155] Shareholders' Equity and Financial Position - Shareholders' equity increased by 33.0% to $11.2 billion as of September 30, 2023, compared to $8.4 billion at the end of 2022[110] - Shareholders' equity increased by $2.8 billion to $11.2 billion at September 30, 2023, from $8.4 billion at December 31, 2022[130] - Total assets increased by 15.9% to $46.3 billion as of September 30, 2023, compared to $40.0 billion at the end of 2022[110] - The company held cash and short-term investments of $4.2 billion, an increase from $2.4 billion at December 31, 2022[186] - The company had $23.8 billion in gross reserves for losses and LAE as of September 30, 2023, up from $22.1 billion at December 31, 2022[195] Claims and Catastrophe Losses - The incurred losses and loss adjustment expenses decreased by 14.4% to $2.25 billion for the three months ended September 30, 2023, compared to $2.62 billion for the same period in 2022[110] - Incurred losses and LAE decreased by 14.4% to $2.2 billion for the three months ended September 30, 2023, compared to $2.6 billion for the same period in 2022, primarily due to a decrease of $665 million in current year catastrophe losses[118] - Current year catastrophe losses for the nine months ended September 30, 2023 amounted to $317 million, a decrease of $723 million compared to $1.0 billion for the same period in 2022[119] - Incurred losses decreased by 16.4% to $1.7 billion for the three months ended September 30, 2023, compared to $2.0 billion for the same period in 2022, primarily due to a $565 million decrease in catastrophe losses[151] - Current year catastrophe losses for the three months ended September 30, 2023, amounted to $165 million, with significant contributions from Hurricane Idalia ($42 million) and the 2023 Morocco earthquake ($40 million)[151] - Current year catastrophe losses for the three months ended September 30, 2023, were $10 million, related to U.S. storms and the Hawaii wildfire, compared to $110 million in the same period of 2022[160] Operating Activities and Cash Flows - Net cash flows from operating activities were $3.5 billion for the nine months ended September 30, 2023, compared to $2.7 billion for the same period in 2022[184] - The company paid $212 million in dividends during the first three quarters of 2023, compared to $255 million in 2022[181] - The company anticipates potential declines in cash flow from operations due to significant claim payments related to recent catastrophic events[187] Regulatory and Risk Management - Bermuda Re's regulatory targeted capital was $2,217 million in 2022, up from $2,169 million in 2021, while Everest Re's targeted capital increased to $3,353 million from $2,960 million[179] - Actual capital for Bermuda Re was $2,759 million in 2022, down from $3,184 million in 2021, and Everest Re's actual capital decreased to $5,553 million from $5,717 million[179] - The company acknowledges that forward-looking statements involve risks and uncertainties that could lead to actual results differing materially from expectations[202] - Important factors affecting performance are discussed under "Risk Factors" in the most recent 10-K filing, indicating a focus on risk management[203]

Everest Group, Ltd. (NYSE:EG) Q3 2023 Earnings Conference Call October 26, 2023 8:00 AM ET Company Participants Matthew Rohrmann - Senior Vice President, Head of Investor Relations Juan Andrade - President and Chief Executive Officer Mark Kociancic - Executive Vice President and Chief Financial Officer James Williamson - Executive Vice President, Group Chief Operating Officer and Head of Everest Reinsurance Division Michael Karmilowicz - Executive Vice President and President and Chief Executive Officer of ...