Everest (US:EG)2023-10-31 16:00Premiums 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]