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Everest (EG) - 2024 Q4 - Annual Results
EGEverest (EG)2025-02-03 21:17

Financial Performance - Annual net income of 1.4billionandnetoperatingincomeof1.4 billion and net operating income of 1.3 billion for 2024[1] - Net loss of 593millionforQ42024,comparedtonetincomeof593 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,translatingto(780) million, translating to (18.39) per diluted share, compared to 1,093millionor1,093 million or 25.18 per diluted share in Q4 2023[34] - Net income decreased to 1,373millionin2024comparedto1,373 million in 2024 compared to 2,517 million in 2023, a decline of 45.4%[50] - The company reported a comprehensive loss of 1,387millionforthequarter,comparedtoacomprehensiveincomeof1,387 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 18.2billion,reflectingayear−over−yeargrowthof9.118.2 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 12,941millionyear−to−date[20]−Netwrittenpremiumsroseby9.612,941 million year-to-date[20] - Net written premiums rose by 9.6% to 3,019 million in Q4 2024, and by 10.8% to 11,969millionyear−to−date[20]−GrosswrittenpremiumfortheGroupincreasedby8.011,969 million year-to-date[20] - Gross written premium for the Group increased by 8.0% to 4,671 million in Q4 2024 from 4,323millioninQ42023[40]−Fortheyear−to−date2024,grosswrittenpremiumfortheGrouproseby9.64,323 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 16,637millionin2023[40]LossRatiosandClaims−CombinedratiofortheGroupwas102.316,637 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 457million[25]−Currentaccidentyearlossesincreasedby457 million[25] - Current accident year losses increased by 229 million for the Group, with 206millioninInsuranceand206 million in Insurance and 22 million in Other[8] Investment Income - Net investment income increased to approximately 2billion,acompanyrecord,upover2 billion, a company record, up over 500 million from the previous year[5] - The net investment income for the quarter was 473million,comparedto473 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 56million,or56 million, or 1.33 per diluted share, compared to a loss of (220)millionor(220) million or (5.06) per diluted share in Q4 2023[34] - The company reported an after-tax net foreign exchange income of 132million,or132 million, or 3.10 per diluted share, in Q4 2024, compared to an expense of (69)millionor(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 13.9billionasofDecember31,2024,comparedto13.9 billion as of December 31, 2024, compared to 13.2 billion a year earlier[31] - Book value per share rose to 322.97from322.97 from 304.29 at the end of 2023[31] - The average adjusted shareholders' equity for the quarter was 15,140million,upfrom15,140 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 334millionin2024from334 million in 2024 from 288 million in 2023, an increase of 16.0%[50] Assets and Liabilities - Total assets increased to 56,341millionin2024from56,341 million in 2024 from 49,399 million in 2023, representing a growth of 14.8%[49] - Total liabilities rose to 42,466millionin2024,upfrom42,466 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 29,889millionin2024,upfrom29,889 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 15,787million,upfrom15,787 million, up from 12,432 million in 2023, an increase of 27.5%[48] Cash Flow - Cash flows from operating activities increased to 4,957millionin2024,upfrom4,957 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)millionin2024,comparedto(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]