Everest (US:EG)2025-02-03 21:17Financial 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]