Core Insights - Everest Group recognized Teleperformance (TP) as a Leader in its Experience-Driven Integrated BFS Operations PEAK Matrix® Assessment, highlighting TP's expertise in banking and financial services, technology, and customer-centric approach [1][2] Group 1: Company Recognition and Offerings - TP's OneOffice offering delivers integrated front-to-back operations across lending, payments, and financial crime segments, addressing the demand for end-to-end services [2] - TP's in-house technology and digital services expertise, bolstered by the acquisition of Majorel, enhance its capabilities in digitally driven operations [2] - TP's extensive operational scale and technology, including its digital services arm TP Infinity, contribute to its recognition as a Leader [2][3] Group 2: Strategic Focus and Innovation - TP excels in AI-driven transformation, continuous investment in advanced technologies, and a flexible global delivery model that supports diverse BFS clients [3] - The company has established strong strategic partnerships with AI technology providers, enhancing its service offerings [2][3] Group 3: Financial Performance - In 2023, Teleperformance reported consolidated revenue of €8,345 million (approximately US$9 billion) and a net profit of €602 million [5]

Core Viewpoint - Everest Medicines has initiated the first patient dosing of its personalized mRNA cancer vaccine EVM16 in a clinical trial, marking a significant milestone in its development and potential therapeutic applications for cancer patients [1][5][6]. Group 1: EVM16 Development and Clinical Trials - EVM16 is a personalized mRNA cancer vaccine developed by Everest, designed to target tumor-specific mutations using the proprietary AI-based neoantigen prediction algorithm, EVER-NEO-1 [2][9]. - The clinical trial EVM16CX01 is a first-in-human study aimed at evaluating the safety, tolerability, immunogenicity, and preliminary efficacy of EVM16 as a monotherapy and in combination with a PD-1 antibody for patients with advanced or recurrent solid tumors [1][10]. - The first patient dosing represents a critical step in advancing Everest's proprietary mRNA technology platform into human trials, showcasing the company's commitment to innovative cancer treatments [5][6]. Group 2: Preclinical Studies and Efficacy - Preclinical studies have shown that EVM16 stimulates a strong neoantigen-specific T cell response and significantly inhibits tumor growth in mouse models [3][4]. - The combination of EVM16 with a PD-1 antibody has demonstrated synergistic anti-tumor effects, supporting its potential use in combination therapies [4][6]. - Safety and tolerability were confirmed in preclinical toxicity studies, indicating that repeated dosing of EVM16 is well tolerated [4][6]. Group 3: Market Context and Future Directions - According to Globocan data from 2022, there were approximately 19.976 million new cancer cases globally, highlighting the urgent need for innovative immunotherapies like personalized mRNA cancer vaccines [7]. - Everest Medicines is also developing a range of mRNA cancer therapeutics, including tumor-associated antigen vaccines and immunomodulatory cancer vaccines, with plans to submit investigational new drug applications in 2025 [8][11]. - The company aims to leverage its AI capabilities to enhance the precision of neoantigen recognition, positioning itself competitively in the biopharmaceutical industry [5][8].

Core Viewpoint - Everest Group reported a wider-than-expected operating loss in Q4 2024, driven by higher expenses and a decline in insurance performance, despite an increase in total operating revenues and net investment income [2][3][12]. Financial Performance - The operating loss for Q4 2024 was $18.39 per share, compared to a loss estimate of $16.65, and a significant drop from an operating income of $25.18 per share in the same quarter last year [2]. - Total operating revenues reached nearly $4.64 billion, marking a 26.7% year-over-year increase, surpassing the consensus estimate by 4.4% [3]. - Net investment income was $473 million, up 15.1% year over year, although it fell short of the Zacks Consensus Estimate of $496 million [4]. - Total claims and expenses surged 59% to $5.4 billion, primarily due to increased incurred losses and various underwriting expenses [5]. Segment Performance - The Reinsurance segment's gross written premiums increased by 12.6% year over year to $3.3 billion, driven by significant growth in Property Catastrophe XOL [7]. - The Insurance segment saw a decline in gross written premiums by 1.6% year over year to $1.3 billion, with notable growth in Property and Short Tail lines offset by decreases in Accident and Health and Specialty Casualty lines [8]. Financial Health - As of the end of Q4 2024, total investments and cash stood at $41.5 billion, an increase of 11.8% from the previous year, while shareholder equity rose by 5.1% to $13.9 billion [10]. - The book value per share was $322.97, reflecting a 6.1% increase from the end of 2023 [10]. - Cash flow from operations was reported at $4.9 billion, up 8.8% year over year, with common share dividends totaling $86 million for the quarter [11]. Full-Year Overview - For the full year 2024, operating income per share decreased by 55% year over year to $29.83, missing the Zacks Consensus Estimate by 23% [12]. - Total revenues for the year increased by 18.5% to $17.28 billion, slightly exceeding the consensus estimate by 1% [12]. Market Sentiment - Recent estimates for Everest Group have shown a downward trend, with a consensus estimate shift of -37.36% [13]. - The company currently holds a Zacks Rank of 5 (Strong Sell), indicating expectations of below-average returns in the coming months [15].

Core Insights - Everest Medicines, a biopharmaceutical company, is focused on discovering, developing, manufacturing, and commercializing transformative pharmaceutical products and vaccines, particularly in the mRNA therapeutic vaccine space [1][6][7] Conference Call Details - The English session of the conference call is scheduled for 9:00 PM Beijing Time on March 6, 2025, which corresponds to 8:00 AM U.S. Eastern Time on the same day [2][3] - The Mandarin session will take place at 9:00 AM Beijing Time on March 7, 2025, equivalent to 8:00 PM U.S. Eastern Time on March 6 [4] - Access to the conference calls can be made through provided links and dial-in information for various regions, including the United States, Chinese Mainland, Hong Kong, and the United Kingdom [3][5] Company Overview - Everest Medicines aims to address critical unmet medical needs in Asian markets, with a management team that possesses extensive expertise from both global and local pharmaceutical companies [6][7] - The company has developed a portfolio of potentially global first-in-class or best-in-class molecules targeting renal diseases, infectious diseases, and autoimmune disorders [7]

Reinsurance Segment Performance - The Reinsurance segment wrote $12.9 billion of gross written premiums for the year ended December 31, 2024, with 90.5% ($11.7 billion) written through the broker reinsurance market[58]. - Property Pro Rata business accounted for 34.5% of reinsurance gross written premiums, while Casualty Pro Rata business accounted for 25.3%[59]. - The Reinsurance segment includes treaty and facultative reinsurance, with both types providing different coverage structures and risk-sharing arrangements[52]. - The Company competes with various international reinsurers and alternative risk providers, highlighting the dynamic nature of the market[62]. Insurance Segment Performance - The Insurance segment wrote $5.1 billion of gross written premiums in 2024, with various lines of business contributing to this total[65]. - The Insurance segment's Specialty Casualty business accounted for 28.1% of gross written premiums, while Professional Liability business accounted for 17.2%[67]. - The Insurance segment operates globally, with tailored products distributed through brokers and agents across multiple regions[64]. Financial Strength and Reserves - The financial strength ratings for the Company's operating subsidiaries are all rated A+ (Superior) by A.M. Best and A+ (Strong) by S&P[92]. - The Company believes that its existing reserves and reserving methodologies reduce the likelihood of material adverse effects on its financial condition[75]. - Reserves for unpaid property and casualty losses and LAE are established to cover future claims and related expenses, with potential material impacts on earnings if reserves are insufficient[71]. - As of December 31, 2024, the Company's gross reserves for Asbestos and Environmental (A&E) claims represented 0.9% of its total reserves[78]. Investment and Capital Management - The Company has expanded its investment portfolio to include fixed and floating rate securities, bank and private loan securities, private equity investments, and corporate-owned life insurance policies[87]. - The company has a statutory earned surplus of $8.1 billion as of December 31, 2024, which limits the amount of dividends it can pay without regulatory approval[110]. - The maximum amount available for dividend payments by Everest Re without triggering prior approval is $813 million as of December 31, 2024[110]. Regulatory and Compliance - The company is subject to periodic financial examinations every three to five years, with no material findings reported in 2024[134]. - The company maintains a minimum of $100 million in statutory capital and surplus as a Class 4 insurer in Bermuda[111]. - The company is licensed to write property and casualty insurance in all 50 states, the District of Columbia, Puerto Rico, and Guam[123]. - The company is authorized to conduct reinsurance business in Canada, Singapore, and Brazil, among other countries[124]. Risk Management - The Company’s Enterprise Risk Management (ERM) framework is integrated into daily operations and overseen by senior management risk committees[97]. - The Chief Risk Officer reports to the Board's Risk Management Committee, which evaluates the effectiveness of the ERM procedures and systems[102]. Taxation and Future Impacts - The Bermuda Corporate Income Tax Act 2023 will impose a 15% corporate income tax starting January 1, 2025, potentially affecting the company's deferred tax assets[141]. - The OECD guidance issued on January 15, 2025, may restrict the utilization of deferred tax benefits to approximately 20% of originally calculated amounts[141]. - The company does not expect the Inflation Reduction Act of 2022 to have a material impact on its results of operations[144]. - The company operates in multiple countries, including Australia, Belgium, Canada, and the U.K., where it is subject to local taxation[145]. Environmental Commitment - The company is committed to managing and reducing its ecological footprint while considering environmental factors in investment decisions[104].

Fourth Quarter 2024 Cautionary Note On Forward-Looking Statements and Non-GAAP Measures This presentation and the accompanying remarks contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. 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 ...

Financial Data and Key Metrics Changes - Everest reported gross written premiums of $4.7 billion, representing a 7.2% growth in constant dollars, excluding reinstatement premiums [30] - The combined ratio was 135.5% for the quarter, including unfavorable development of prior year loss reserves of $1.5 billion, contributing 37.6 percentage points to the combined ratio [30][31] - Operating income for the year was $1.3 billion, achieving a 9% operating return on equity [11] Business Line Data and Key Metrics Changes - In the reinsurance segment, gross premiums grew by 12.6% in constant dollars, driven by strong increases in property pro rata and property cat XOL [33] - The combined ratio for the reinsurance segment was 90.4% in the fourth quarter, compared to 78.9% in the prior year [34] - The insurance segment saw gross premiums written decrease by 1.6% in constant dollars to $1.4 billion, primarily due to actions taken to shed underperforming U.S. casualty business [37] Market Data and Key Metrics Changes - The global property cat reinsurance market remains attractive for Everest, with customers preferring to do more business with the company [20] - The average modeled loss costs for European cat exposure increased by about 10%, leading to a significant reduction in the number of deals [18] Company Strategy and Development Direction - The company is focused on maintaining underwriting discipline and cedent selection, having walked away from nearly $750 million in North American casualty quota share business [15] - Everest aims to increase scale in the 12 markets it operates in, without entering additional markets this year, to achieve greater premium leverage against expenses [23] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite the impact of reserve strengthening, highlighting strong income streams in reinsurance and investments [11] - The company anticipates that the California wildfires will serve as a reminder for property reinsurance underwriters to maintain pricing discipline [20] Other Important Information - The company strengthened current accident year losses by $229 million, with total strengthening of $1.7 billion for the full year [31] - Cash flow from operations was $780 million during the quarter and approximately $5 billion for the full year [45] Q&A Session Summary Question: How does the company plan to manage volatility in the insurance segment? - Management emphasized diligent P&L management and strategic use of outbound reinsurance to manage risk and volatility [51][52] Question: What is the framework for capital management activities? - The company highlighted a strong financial position and a focus on achieving mid-teens total shareholder return over the cycle, with plans for share repurchases [55][56] Question: What can be expected regarding the insurance segment loss ratio progress? - Management indicated that mix improvements and prudent reserve actions will positively impact the loss ratio in 2025 [60][61] Question: Why is the medical stop-loss business being exited? - The company non-renewed a major block in the medical stop-loss business due to difficulties, and the full impact will be seen over the year [71][72] Question: How does the company view the impact of wildfires on reinsurance pricing? - Management expects the wildfires to positively impact pricing, with increased demand for coverage from clients [82] Question: What is the expected effective tax rate for 2025? - The estimated effective tax rate for the group is projected to be in the range of 17% to 18% [109] Question: How is the company managing its engagement with cedents? - The company has been consistently ensuring high-quality data from cedents and engaging in direct discussions to understand trends affecting their portfolios [102][103]

Core Insights - Everest Group, Ltd. reported a fourth-quarter 2024 operating loss of $18.39 per share, which was wider than the Zacks Consensus Estimate of a loss of $16.65, compared to an operating income of $25.18 per share in the same quarter last year [1][3] Operational Update - Total operating revenues reached nearly $4.64 billion, marking a 26.7% year-over-year increase, driven by higher premiums and net investment income, surpassing the consensus mark by 4.4% [3] - Gross written premiums improved by 8% year-over-year to $4.7 billion, supported by strong growth in property and specialty lines, although partially offset by reductions in certain casualty lines [3] - Net investment income was $473 million, a 15.1% increase year-over-year, attributed to a larger asset base and strong core fixed income returns, although it fell short of the Zacks Consensus Estimate of $496 million [4] Claims and Expenses - Total claims and expenses surged by 59% to $5.4 billion, primarily due to higher incurred losses and various underwriting expenses, exceeding the estimate of $3.6 billion [5] - The pre-tax underwriting loss was $1.4 billion, a significant decline from the prior year's pre-tax underwriting income of $245 million, with the combined ratio deteriorating by 4,230 basis points to 135.5 [6] Segment Update - The Reinsurance segment's gross written premiums were $3.3 billion, up 12.6% year-over-year, driven by significant increases in Property Catastrophe XOL and Property ProRata, despite a decrease in Casualty Pro-Rata [7] - The Insurance segment generated gross written premiums of $1.3 billion, down 1.6% year-over-year, with notable growth in Property and Short Tail lines offset by declines in Accident and Health and Specialty Casualty [8] Financial Update - As of the end of the fourth quarter 2024, total investments and cash stood at $41.5 billion, an 11.8% increase from 2023, while shareholder equity rose by 5.1% to $13.9 billion [9] - Book value per share was $322.97, reflecting a 6.1% increase from the end of 2023, with an annualized net income return on equity of negative 15.7% compared to positive 23.8% in the previous year [10] Full-Year Highlights - For the full year 2024, operating income per share decreased by 55% year-over-year to $29.83, missing the Zacks Consensus Estimate by 23%, while total revenues increased by 18.5% to $17.28 billion, slightly beating the consensus estimate [11]

Financial Performance - Annual net income of $1.4 billion and net operating income of $1.3 billion for 2024[1] - Net loss of $593 million for Q4 2024, compared to net income of $804 million in Q4 2023[13] - After-tax net operating income for Q4 2024 was $(780) million, translating to $(18.39) per diluted share, compared to $1,093 million or $25.18 per diluted share in Q4 2023[34] - Net income decreased to $1,373 million in 2024 compared to $2,517 million in 2023, a decline of 45.4%[50] - The company reported a comprehensive loss of $1,387 million for the quarter, compared to a comprehensive income of $2,041 million in the same quarter of 2023[48] Premiums and Underwriting - Total gross written premium reached $18.2 billion, reflecting a year-over-year growth of 9.1%[5] - Gross written premiums increased by 13.7% year-over-year to $3,291 million in Q4 2024, and by 12.9% to $12,941 million year-to-date[20] - Net written premiums rose by 9.6% to $3,019 million in Q4 2024, and by 10.8% to $11,969 million year-to-date[20] - Gross written premium for the Group increased by 8.0% to $4,671 million in Q4 2024 from $4,323 million in Q4 2023[40] - For the year-to-date 2024, gross written premium for the Group rose by 9.6% to $18,232 million compared to $16,637 million in 2023[40] Loss Ratios and Claims - Combined ratio for the Group was 102.3%, with 89.7% for Reinsurance and 130.7% for Insurance, including actions to strengthen U.S. casualty reserves[5] - The total loss ratio for Q4 2024 was 61.6%, an increase of 13.8 percentage points compared to the prior year[20] - The combined ratio for the Insurance segment was 239.2% in Q4 2024, an increase of 115.4 percentage points from the prior year[22] - The Other segment reported an underwriting loss of $429 million in Q4 2024, with total incurred losses and LAE of $457 million[25] - Current accident year losses increased by $229 million for the Group, with $206 million in Insurance and $22 million in Other[8] Investment Income - Net investment income increased to approximately $2 billion, a company record, up over $500 million from the previous year[5] - The net investment income for the quarter was $473 million, compared to $411 million in the same quarter of 2023, reflecting a growth of 15.1%[48] - After-tax net gains on investments for Q4 2024 were $56 million, or $1.33 per diluted share, compared to a loss of $(220) million or $(5.06) per diluted share in Q4 2023[34] - The company reported an after-tax net foreign exchange income of $132 million, or $3.10 per diluted share, in Q4 2024, compared to an expense of $(69) million or $(1.60) per diluted share in Q4 2023[34] Shareholder Metrics - Total shareholder return (TSR) was 9.2% for the year[14] - Shareholders' equity increased to $13.9 billion as of December 31, 2024, compared to $13.2 billion a year earlier[31] - Book value per share rose to $322.97 from $304.29 at the end of 2023[31] - The average adjusted shareholders' equity for the quarter was $15,140 million, up from $13,509 million in the same quarter of the previous year, an increase of 12.1%[42] - Dividends paid to shareholders increased to $334 million in 2024 from $288 million in 2023, an increase of 16.0%[50] Assets and Liabilities - Total assets increased to $56,341 million in 2024 from $49,399 million in 2023, representing a growth of 14.8%[49] - Total liabilities rose to $42,466 million in 2024, up from $36,197 million in 2023, reflecting an increase of 17.8%[49] - The reserve for losses and loss adjustment expenses increased to $29,889 million in 2024, up from $24,604 million in 2023, a rise of 21.5%[49] - The total claims and expenses for the twelve months ended December 31, 2024, amounted to $15,787 million, up from $12,432 million in 2023, an increase of 27.5%[48] Cash Flow - Cash flows from operating activities increased to $4,957 million in 2024, up from $4,553 million in 2023, an increase of 8.9%[50] - Net cash used in investing activities was $(4,478) million in 2024, compared to $(5,902) million in 2023, indicating a reduction in cash outflow of 24.0%[50] Ratios and Performance Indicators - The attritional combined ratio for Q4 2024 was 91.6%, including 5.8 points of 2024 accident year loss reserve strengthening[6] - The attritional loss ratio for Q4 2024 was 63.9% for the Group, a decrease from 59.0% in Q4 2023, indicating improved underwriting performance[36] - The combined ratio for Q4 2024 was 135.5% for the Group, up from 93.2% in Q4 2023, reflecting increased losses and expenses[36] - The net operating income return on equity (ROE) is calculated to provide better comparability by removing variability in assessing operational results[41] - The attritional combined ratio excluding profit commission for the Group was 83.7% in Q4 2024, compared to 85.1% in Q4 2023, indicating a slight improvement[36]

Shares of Everest Group (NYSE: EG ) have been a poor performer over the past year, losing 4% and missing out on a large equity run. Despite a cheap valuation, disappointing underwriting results have been a headwind for results, with the company’s preliminaryOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an artic ...