FALSE000109507300010950732023-07-262023-07-26
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
July 26, 2023
Everest Group, Ltd.
(Exact name of registrant as specified in its charter)
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Bermuda | 1-15731 | 98-0365432 |
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(State or other jurisdiction | (Commission | (IRS Employer |
of incorporation) | File Number) | Identification No.) |
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Seon Place – 4th Floor 141 Front Street PO Box HM 845 Hamilton, Bermuda | HM 19 |
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(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code 441-295-0006
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
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Class | | Trading Symbol(s) | | Name of Exchange where registered |
Common Shares, $0.01 par value | | EG | | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 12(a) of the Exchange Act.
ITEM 2.02 DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On July 26, 2023, the registrant issued a news release announcing its second quarter 2023 results. A copy of that news release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
The news release furnished herewith contains information regarding the registrant’s operating income (loss). Operating income (loss) differs from net income (loss) attributable to Everest Group, the most directly comparable generally accepted accounting principle financial measure, by the exclusion of net gains (losses) on investments and net foreign exchange income (expense). Management believes that presentation of operating income (loss) provides useful information to investors because it more accurately measures and predicts the registrant’s results of operations by removing the variability arising from both the management of the registrant’s investment portfolio and the fluctuations of foreign currency exchange rates. In addition, management, analysts and investors use operating income (loss) to evaluate the financial performance of the registrant and the insurance industry in general.
In accordance with general instruction B.2 of Form 8-K, the information in this report, including exhibits, is furnished pursuant to Item 2.02 and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
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(c) | Exhibits | | |
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| Exhibit No. | | Description |
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| 99.1 | | News Release of the registrant, dated July 26, 2023 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| | EVEREST GROUP, LTD. |
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| By: | /S/ ROBERT J. FREILING |
| | Robert J. Freiling Senior Vice President and Chief Accounting Officer |
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Dated: July 26, 2023 | | |
EXHIBIT INDEX
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Exhibit Number | | Description of Document | | Page No. |
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104 | | Cover Page Interactive Data File (embedded within the Inline XBRL document | | |
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NEWS RELEASE | |
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EVEREST GROUP, LTD. | |
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Seon place, 141 Front Street, 4th Floor, Hamilton HM 19, Bermuda | |
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Contacts | |
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Media: Dawn Lauer | Investors: Matt Rohrmann |
Chief Communications Officer | Head of Investor Relations |
908.300.7670 | 908.604.7343 |
Everest Reports Second Quarter 2023 Results
Net Income of $670 million and Record Operating Income of $627 million
22.3%1 GWP2 Growth, Led by Record Reinsurance Growth of 26.9%1 and Strong
Pricing Momentum
87.7% Combined Ratio Improved 410 Basis Points Year-Over-Year
HAMILTON, Bermuda – (BUSINESS WIRE) – July 26, 2023 – Everest Group, Ltd. (NYSE: EG), a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions, today reported its second quarter 2023 results.
Second Quarter 2023 Highlights
•Record Operating Income of $627 million; Net Income of $670 million driven by continued underwriting margin improvement
•23.3% Net Income ROE and 21.8% Operating Income ROE; Record Total Shareholder Return of 25.3% annualized
•$4.2 billion in gross written premium with year-over-year growth of 22.3% in constant dollars as reported for the Group, 26.9% in constant dollars for Reinsurance and 14.1% in constant dollars for Insurance
•Combined ratios of 87.7% for the Group, 85.9% for Reinsurance and 92.7% for Insurance driven by improved pricing and lower catastrophe losses year-over-year
•Attritional combined ratios of 86.7% for the Group, 84.7% for Reinsurance and 92.1% for Insurance
•Pre-tax underwriting income of $401 million versus $240 million in the prior year
•$27 million of pre-tax catastrophe losses net of recoveries and reinstatement premiums versus $85 million in the prior year
•Net investment income improved to $357 million versus $226 million in the prior year second quarter, driven by strong fixed income and alternative investment returns
•Completed successful $1.5 billion public equity offering in May 2023
•Strong operating cashflow for the quarter of $1.1 billion versus $715 million in the second quarter 2022
Footnote 1 in header denotes constant currency figure.
Footnote 2 in header denotes gross written premium (“GWP”).
“Everest’s second quarter performance was outstanding as we leaned into the hard reinsurance market. We continued to grow premiums, while expanding margins, resulting in strong increases in quarterly underwriting profits, net income, and record operating income. We delivered an operating ROE of 21.8% and a record annualized Total Shareholder Return in excess of 25%,” said Juan C. Andrade, Everest President & CEO. “Our lead market position in reinsurance, combined with best-in-class execution and dynamic capital deployment enabled us to take advantage of favorable market conditions and drive significantly higher risk adjusted returns. We also continued to advance our diversified and disciplined global primary insurance franchise, which is benefiting from firming rates. In addition to the excellent underwriting profit in the quarter, we generated nearly $360 million in net investment income with our well positioned portfolio. Our exceptional talent, diversified platform and underwriting discipline give us significant firepower to continue delivering on our objectives and capitalizing on abundant market opportunities, which are expected to continue well into 2024.”
Summary of Second Quarter 2023 Net Income and Other Items
•Net Income of $670 million, equal to $16.26 per diluted share versus second quarter 2022 net income of $123 million, equal to $3.11 per diluted share
•Operating income of $627 million, equal to $15.21 per diluted share versus second quarter 2022 net operating income of $386 million, equal to $9.79 per diluted share
•GAAP combined ratio of 87.7%, including 0.8 points of catastrophe losses versus the second quarter 2022 figure of 91.8%, including 2.9 points of catastrophe losses
The following table summarizes the Company’s Net Income and related financial metrics.
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Net income and operating income | Q2 | | Year to Date | | Q2 | | Year to Date |
All values in USD millions except for per share amounts and percentages | 2023 | | 2023 | | 2022 | | 2022 |
Everest Group | | | | | | | |
Net income (loss) | 670 | | | 1,035 | | | 123 | | | 420 | |
Operating income (loss) (1) | 627 | | | 1,070 | | | 386 | | | 792 | |
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Net income (loss) per diluted common share | 16.26 | | | 25.74 | | | 3.11 | | | 10.67 | |
Net operating income (loss) per diluted common share | 15.21 | | | 26.61 | | | 9.79 | | | 20.10 | |
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Net income (loss) return on average equity (annualized) | 23.3 | % | | 18.3 | % | | 4.8 | % | | 8.4 | % |
After-tax operating income (loss) return on average equity (annualized) | 21.8 | % | | 18.9 | % | | 15.3 | % | | 15.8 | % |
Notes
(1) Refer to the reconciliation of net income to net operating income found on page 6 of this press release
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Shareholders' Equity and Book Value per Share | Q2 | | Year to Date | | Q2 | | Year to Date |
All values in USD millions except for per share amounts and percentages | 2023 | | 2023 | | 2022 | | 2022 |
Beginning shareholders' equity | 9,014 | | | 8,441 | | | 9,528 | | | 10,139 | |
Net income (loss) | 670 | | | 1,035 | | | 123 | | | 420 | |
Change - unrealized gains (losses) - Fixed inc. investments | (167) | | | 82 | | | (717) | | | (1,528) | |
Dividends to shareholders | (72) | | | (136) | | | (65) | | | (126) | |
Purchase of treasury shares | — | | | — | | | — | | | (1) | |
Public equity offering of shares | 1,445 | | | 1,445 | | | — | | | — | |
Other | 11 | | | 36 | | | (16) | | | (51) | |
Ending shareholders' equity | 10,902 | | | 10,902 | | | 8,853 | | | 8,853 | |
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Common shares outstanding | | | 43.4 | | | | | 39.4 | |
Book value per common share outstanding | | | 251.17 | | | | | 224.59 | |
Less: Unrealized appreciation/depreciation of fixed maturity investments ("URAD") | | | (37.47) | | | | | (32.68) | |
Adjusted book value per common share outstanding excluding URAD | | | 288.64 | | | | | 257.27 | |
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Change in BVPS adjusted for dividends | | | 18.1 | % | | | | (11.8) | % |
Total Shareholder Return ("TSR") - Annualized | | | 25.3 | % | | | | 6.6 | % |
Common share dividends paid - last 12 months | | | 6.60 | | | | | 6.30 | |
The following information summarizes the Company’s underwriting results, on a consolidated basis and by segment – Reinsurance and Insurance, with selected commentary on results by segment.
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Underwriting information - Everest Group | Q2 | | Year to Date | | Q2 | | Year to Date | | Year on Year Change |
All values in USD millions except for percentages | 2023 | | 2023 | | 2022 | | 2022 | | Q2 | | Year to Date |
Gross written premium | 4,180 | | | 7,923 | | | 3,447 | | | 6,633 | | | 21.3 | % | | 19.4 | % |
Net written premium | 3,674 | | | 7,003 | | | 3,021 | | | 5,833 | | | 21.6 | % | | 20.1 | % |
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Loss ratio | 60.3 | % | | 61.8 | % | | 64.3 | % | | 64.2 | % | | (4.0) | pts | | (2.4) | pts |
Commission and brokerage ratio | 21.1 | % | | 21.2 | % | | 21.6 | % | | 21.6 | % | | (0.5) | pts | | (0.4) | pts |
Other underwriting expenses | 6.3 | % | | 6.4 | % | | 5.8 | % | | 5.8 | % | | 0.5 | pts | | 0.6 | pts |
Combined ratio | 87.7 | % | | 89.4 | % | | 91.8 | % | | 91.7 | % | | (4.1) | pts | | (2.3) | pts |
Attritional combined ratio (1) | 86.7 | % | | 87.1 | % | | 87.2 | % | | 87.3 | % | | (0.5) | pts | | (0.2) | pts |
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Pre-tax net catastrophe losses (2) | 27 | | | 137 | | | 85 | | | 200 | | | | | |
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Pre-tax net Russia/Ukraine losses | — | | | — | | | 45 | | | 45 | | | | | |
Pre-tax net prior year reserve development | 0 | | | 0 | | | (1) | | | (2) | | | | | |
Notes
(1) Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, prior year development, COVID-19 losses, CECL, and losses from the Russia/Ukraine war
(2) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums
Reinsurance Segment – Quarterly Highlights
•Gross written premiums grew 26.9% on a constant dollar basis to approximately $2.8 billion, a new quarterly premium record for the segment. Growth was broad-based across geographies and lines.
•Growth was driven by 34.7% growth in property pro-rata, 29.6% growth in property Cat, and 16.2% in Casualty pro-rata as pricing increases and a flight to quality continues globally.
•Robust pricing momentum continued in the second quarter, with Cat pricing up 47.5% in North America and 29.2% Internationally, with improved terms/conditions.
•Attritional loss ratio improved 120-basis points over last year to 57.6%, and the attritional combined ratio improved to 84.7% vs 86.0% a year ago.
•Pre-tax catastrophe losses fell to $27 million net of estimated recoveries and reinstatement premiums, from $80 million a year ago. Catastrophe losses in the quarter were partially offset by $30 million of catastrophe bond recoveries related to Hurricane Ian.
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Underwriting information - Reinsurance segment | Q2 | | Year to Date | | Q2 | | Year to Date | | Year on Year Change |
All values in USD millions except for percentages | 2023 | | 2023 | | 2022 | | 2022 | | Q2 | | Year to Date |
Gross written premium | 2,766 | | | 5,403 | | | 2,201 | | | 4,387 | | | 25.7 | % | | 23.2 | % |
Net written premium | 2,639 | | | 5,093 | | | 2,122 | | | 4,204 | | | 24.4 | % | | 21.2 | % |
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Loss ratio | 58.8 | % | | 60.8 | % | | 64.6 | % | | 64.4 | % | | (5.8) | pts | | (3.6) | pts |
Commission and brokerage ratio | 24.5 | % | | 24.7 | % | | 24.8 | % | | 24.8 | % | | (0.3) | pts | | (0.1) | pts |
Other underwriting expenses | 2.6 | % | | 2.7 | % | | 2.4 | % | | 2.4 | % | | 0.2 | pts | | 0.3 | pts |
Combined ratio | 85.9 | % | | 88.2 | % | | 91.8 | % | | 91.6 | % | | (5.9) | pts | | (3.4) | pts |
Attritional combined ratio (1) | 84.7 | % | | 85.3 | % | | 86.0 | % | | 86.1 | % | | (1.3) | pts | | (0.8) | pts |
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Pre-tax net catastrophe losses (2) | 27 | | | 135 | | | 80 | | | 190 | | | | | |
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Pre-tax net Russia/Ukraine losses | — | | | — | | | 45 | | | 45 | | | | | |
Pre-tax net prior year reserve development | 0 | | | 0 | | | (1) | | | (2) | | | | | |
Notes
(1) Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, prior year development, COVID-19 losses, CECL, and losses from the Russia/Ukraine war
(2) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums
Insurance Segment – Quarterly Highlights
•Gross written premiums rose to $1.4 billion, a 14.1% increase year-over-year in constant dollars, a new quarterly record, led by a diversified mix of property, marine, aviation, energy and other specialty lines
•Strong cycle management delivered an underwriting profit of $64 million.
•Catastrophe losses were benign in the quarter demonstrating our de-risking actions on the portfolio.
•Disciplined expense management drove a total expense ratio of 28.3% with continued investment in global systems and our platform.
•Pricing continues to exceed loss trend.
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Underwriting information - Insurance segment | Q2 | | Year to Date | | Q2 | | Year to Date | | Year on Year Change |
All values in USD millions except for percentages | 2023 | | 2023 | | 2022 | | 2022 | | Q2 | | Year to Date |
Gross written premium | 1,414 | | | 2,520 | | | 1,246 | | | 2,247 | | | 13.5 | % | | 12.2 | % |
Net written premium | 1,035 | | | 1,910 | | | 899 | | | 1,630 | | | 15.0 | % | | 17.2 | % |
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Loss ratio | 64.4 | % | | 64.6 | % | | 63.6 | % | | 63.9 | % | | 0.8 | pts | | 0.7 | pts |
Commission and brokerage ratio | 11.8 | % | | 11.8 | % | | 12.8 | % | | 12.7 | % | | (1.0) | pts | | (0.9) | pts |
Other underwriting expenses | 16.5 | % | | 16.2 | % | | 15.1 | % | | 15.2 | % | | 1.4 | pts | | 1.0 | pts |
Combined ratio | 92.7 | % | | 92.5 | % | | 91.5 | % | | 91.7 | % | | 1.2 | pts | | 0.8 | pts |
Attritional combined ratio (1) | 92.1 | % | | 91.9 | % | | 90.2 | % | | 90.6 | % | | 1.9 | pts | | 1.3 | pts |
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Pre-tax net catastrophe losses (2) | — | | | 2 | | | 5 | | | 10 | | | | | |
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Pre-tax net Russia/Ukraine losses | — | | | — | | | — | | | — | | | | | |
Pre-tax net prior year reserve development | — | | | — | | | — | | | 1 | | | | | |
Notes
(1) Attritional combined ratio excludes catastrophe losses, reinstatement premiums, prior year development, Covid-19 losses, CECL, and losses from the Russian/Ukraine war.
(2) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums
Investments and Shareholders’ Equity as of June 30, 2023
•Total invested assets and cash of $33.6 billion versus $29.9 billion on December 31, 2022
•Shareholders’ equity of $10.9 billion vs. $8.4 billion on December 31, 2022, including $1.6 billion of unrealized net losses on AFS fixed maturity investments
•Shareholders’ equity excluding unrealized gains (losses) on AFS fixed maturity investments of $12.5 billion versus $10.1 billion on December 31, 2022
•Book value per share of $251.17 versus $215.54 at December 31, 2022
•Book value per share excluding unrealized gains (losses) on AFS fixed maturity investments of $288.64 versus $259.18 at December 31, 2022
•Common share dividends declared and paid in the quarter of $1.65 per share equal to $72 million
This news release contains forward-looking statements within the meaning of the U.S. federal securities laws. 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 involve risks and uncertainties that could cause actual results to differ materially from those
contained in forward-looking statements made on behalf of the Company. These risks and uncertainties include the impact of general economic conditions and conditions affecting the insurance and reinsurance industry, the adequacy of our reserves, our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, investment market and investment income fluctuations, trends in insured and paid losses, catastrophes, pandemic, regulatory and legal uncertainties and other factors described in our latest Annual Report on Form 10-K. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About Everest
Everest Group, Ltd. (Everest) is a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions that address customers’ most pressing challenges. Known for a 50-year track record of disciplined underwriting, capital and risk management, Everest, through its global operating affiliates, is committed to underwriting opportunity for colleagues, customers, shareholders, and communities worldwide.
Everest common stock (NYSE: EG) is a component of the S&P 500 index.
Additional information about Everest, our people, and our products can be found on our website at www.everestglobal.com.
A conference call discussing the results will be held at 8:00 a.m. Eastern Time on July 27, 2023. The call will be available on the Internet through the Company’s website at https://www.everestglobal.com/investor-relations.
Recipients are encouraged to visit the Company’s website to view supplemental financial information on the Company’s results. The supplemental information is located at www.everestglobal.com in the “Investors/Financials/Quarterly Results” section of the website. The supplemental financial information may also be obtained by contacting the Company directly.
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The Company generally uses after-tax operating income (loss), a non-GAAP financial measure, to evaluate its performance. After-tax operating income (loss) consists of net income (loss) excluding after-tax net gains (losses) on investments and after-tax net foreign exchange income (expense) as the following reconciliation displays:
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(Dollars in millions, except per share amounts) | Three Months Ended June 30, | | Six Months Ended June 30, |
2023 | | 2022 | | 2023 | | 2022 |
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| (unaudited) | | (unaudited) |
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| Amount | | Per Diluted Share | | Amount | | Per Diluted Share | | Amount | | Per Diluted Share | | Amount | | Per Diluted Share |
After-tax operating income (loss) | $ | 627 | | | $ | 15.21 | | | $ | 386 | | | $ | 9.79 | | | $ | 1,070 | | | $ | 26.61 | | | $ | 792 | | | $ | 20.10 | |
After-tax net gains (losses) on investments | 4 | | | 0.11 | | | (189) | | | (4.79) | | | 10 | | | 0.25 | | | (312) | | | (7.93) | |
After-tax net foreign exchange income (expense) | 39 | | | 0.94 | | | (74) | | | (1.88) | | | (45) | | | (1.12) | | | (59) | | | (1.49) | |
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Net income (loss) | $ | 670 | | | $ | 16.26 | | | $ | 123 | | | $ | 3.11 | | | $ | 1,035 | | | $ | 25.74 | | | $ | 420 | | | $ | 10.67 | |
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(Some amounts may not reconcile due to rounding.) |
Although net gains (losses) on investments and net foreign exchange income (expense) are an integral part of the Company’s insurance operations, the determination of net gains (losses) on
investments and foreign exchange income (expense) is independent of the insurance underwriting process. The Company believes that the level of net gains (losses) on investments and net foreign exchange income (expense) for any particular period is not indicative of the performance of the underlying business in that particular period. Providing only a GAAP presentation of net income (loss) makes it more difficult for users of the financial information to evaluate the Company’s success or failure in its basic business and may lead to incorrect or misleading assumptions and conclusions. The Company understands that the equity analysts who follow the Company focus on after-tax operating income (loss) in their analyses for the reasons discussed above. The Company provides after-tax operating income (loss) to investors so that they have what management believes to be a useful supplement to GAAP information concerning the Company’s performance.
--Financial Details Follow--
EVEREST GROUP, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
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| Three Months Ended June 30, | | Six Months Ended June 30, |
(Dollars in millions, except per share amounts) | 2023 | | 2022 | | 2023 | | 2022 |
| (unaudited) | | (unaudited) |
REVENUES: | | | | | | | |
Premiums earned | $ | 3,251 | | | $ | 2,916 | | | $ | 6,352 | | | $ | 5,708 | |
Net investment income | 357 | | | 226 | | | 617 | | | 469 | |
Total net gains (losses) on investments | 5 | | | (236) | | | 10 | | | (390) | |
Other income (expense) | 38 | | | (71) | | | (42) | | | (56) | |
Total revenues | 3,650 | | | 2,835 | | | 6,936 | | | 5,731 | |
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CLAIMS AND EXPENSES: | | | | | | | |
Incurred losses and loss adjustment expenses | 1,960 | | | 1,876 | | | 3,927 | | | 3,666 | |
Commission, brokerage, taxes and fees | 686 | | | 630 | | | 1,347 | | | 1,236 | |
Other underwriting expenses | 205 | | | 170 | | | 405 | | | 331 | |
Corporate expenses | 17 | | | 15 | | | 36 | | | 29 | |
Interest, fees and bond issue cost amortization expense | 33 | | | 24 | | | 65 | | | 48 | |
Total claims and expenses | 2,901 | | | 2,715 | | | 5,779 | | | 5,310 | |
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INCOME (LOSS) BEFORE TAXES | 750 | | | 119 | | | 1,157 | | | 421 | |
Income tax expense (benefit) | 80 | | | (4) | | | 122 | | | 1 | |
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NET INCOME (LOSS) | $ | 670 | | | $ | 123 | | | $ | 1,035 | | | $ | 420 | |
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Other comprehensive income (loss), net of tax: | | | | | | | |
Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period | (169) | | | (732) | | | 77 | | | (1,548) | |
Reclassification adjustment for realized losses (gains) included in net income (loss) | 2 | | | 16 | | | 5 | | | 20 | |
Total URA(D) on securities arising during the period | (167) | | | (717) | | | 82 | | | (1,528) | |
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Foreign currency translation adjustments | (1) | | | (28) | | | 30 | | | (62) | |
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Reclassification adjustment for amortization of net (gain) loss included in net income (loss) | — | | | 1 | | | 1 | | | 2 | |
Total benefit plan net gain (loss) for the period | — | | | 1 | | | 1 | | | 2 | |
Total other comprehensive income (loss), net of tax | (168) | | | (744) | | | 113 | | | (1,588) | |
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COMPREHENSIVE INCOME (LOSS) | $ | 502 | | | $ | (621) | | | $ | 1,148 | | | $ | (1,168) | |
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EARNINGS PER COMMON SHARE: | | | | | | | |
Basic | $ | 16.26 | | | $ | 3.11 | | | $ | 25.74 | | | $ | 10.67 | |
Diluted | $ | 16.26 | | | $ | 3.11 | | | $ | 25.74 | | | $ | 10.67 | |
EVEREST GROUP, LTD.
CONSOLIDATED BALANCE SHEETS
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| June 30, | | December 31, |
(Dollars and share amounts in millions, except par value per share) | 2023 | | 2022 |
| (unaudited) | | |
ASSETS: | | | |
Fixed maturities - available for sale, at fair value (amortized cost: 2023, $26,372; 2022, $24,191, credit allowances: 2023, $(63); 2022, $(54)) | $ | 24,489 | | | $ | 22,236 | |
Fixed maturities - held to maturity, at amortized cost (fair value: 2023, $781; 2022, $821, net of credit allowances: 2023, $(8); 2022, $(9)) | 798 | | | 839 | |
Equity securities, at fair value | 259 | | | 281 | |
Other invested assets | 4,262 | | | 4,085 | |
Short-term investments | 1,675 | | | 1,032 | |
Cash | 2,067 | | | 1,398 | |
Total investments and cash | 33,550 | | | 29,872 | |
Accrued investment income | 266 | | | 217 | |
Premiums receivable (net of credit allowances: 2023, $(34); 2022, $(29)) | 4,263 | | | 3,619 | |
Reinsurance paid loss recoverables (net of credit allowances: 2023, $(24); 2022, $(23)) | 201 | | | 136 | |
Reinsurance unpaid loss recoverables | 2,175 | | | 2,105 | |
Funds held by reinsureds | 1,075 | | | 1,056 | |
Deferred acquisition costs | 1,086 | | | 962 | |
Prepaid reinsurance premiums | 692 | | | 610 | |
Income tax asset, net | 399 | | | 459 | |
Other assets (net of credit allowances: 2023, $(7); 2022, $(5)) | 961 | | | 930 | |
TOTAL ASSETS | $ | 44,668 | | | $ | 39,966 | |
| | | |
LIABILITIES: | | | |
Reserve for losses and loss adjustment expenses | 23,405 | | | 22,065 | |
Future policy benefit reserve | 28 | | | 29 | |
Unearned premium reserve | 5,943 | | | 5,147 | |
Funds held under reinsurance treaties | 25 | | | 13 | |
Amounts due to reinsurers | 678 | | | 567 | |
Losses in course of payment | 150 | | | 74 | |
Senior notes | 2,348 | | | 2,347 | |
Long-term notes | 218 | | | 218 | |
Borrowings from FHLB | 519 | | | 519 | |
Accrued interest on debt and borrowings | 19 | | | 19 | |
Unsettled securities payable | 21 | | | 1 | |
Other liabilities | 412 | | | 526 | |
Total liabilities | 33,766 | | | 31,525 | |
| | | |
SHAREHOLDERS' EQUITY: | | | |
Preferred shares, par value: $0.01; 50.0 shares authorized; no shares issued and outstanding | — | | | — | |
Common shares, par value: $0.01; 200.0 shares authorized; (2023) 74.2 and (2022) 69.9 outstanding before treasury shares | 1 | | | 1 | |
Additional paid-in capital | 3,753 | | | 2,302 | |
Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) of $(247) at 2023 and $(250) at 2022 | (1,883) | | | (1,996) | |
Treasury shares, at cost; 30.8 shares (2023) and 30.8 shares (2022) | (3,908) | | | (3,908) | |
Retained earnings | 12,940 | | | 12,042 | |
Total shareholders' equity | 10,902 | | | 8,441 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 44,668 | | | $ | 39,966 | |
EVEREST GROUP, LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
| | | | | | | | | | | |
| Six Months Ended June 30, |
(Dollars in millions) | 2023 | | 2022 |
| (unaudited) |
CASH FLOWS FROM OPERATING ACTIVITIES: | | | |
Net income (loss) | $ | 1,035 | | | $ | 420 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | |
Decrease (increase) in premiums receivable | (584) | | | (223) | |
Decrease (increase) in funds held by reinsureds, net | (5) | | | (51) | |
Decrease (increase) in reinsurance recoverables | (21) | | | (237) | |
Decrease (increase) in income taxes | 56 | | | (100) | |
Decrease (increase) in prepaid reinsurance premiums | (40) | | | (110) | |
Increase (decrease) in reserve for losses and loss adjustment expenses | 1,142 | | | 1,360 | |
Increase (decrease) in future policy benefit reserve | (1) | | | (2) | |
Increase (decrease) in unearned premiums | 732 | | | 177 | |
Increase (decrease) in amounts due to reinsurers | 63 | | | 120 | |
Increase (decrease) in losses in course of payment | 75 | | | (178) | |
Change in equity adjustments in limited partnerships | (56) | | | (157) | |
Distribution of limited partnership income | 49 | | | 105 | |
Change in other assets and liabilities, net | (292) | | | (11) | |
Non-cash compensation expense | 25 | | | 24 | |
Amortization of bond premium (accrual of bond discount) | (11) | | | 35 | |
Net (gains) losses on investments | (10) | | | 390 | |
Net cash provided by (used in) operating activities | 2,158 | | | 1,562 | |
| | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | |
Proceeds from fixed maturities matured/called/repaid - available for sale | 1,137 | | | 1,661 | |
Proceeds from fixed maturities sold - available for sale | 168 | | | 772 | |
Proceeds from fixed maturities matured/called/repaid - held to maturity | 61 | | | — | |
Proceeds from equity securities sold | 46 | | | 438 | |
Distributions from other invested assets | 133 | | | 205 | |
Cost of fixed maturities acquired - available for sale | (3,396) | | | (4,071) | |
Cost of fixed maturities acquired - held to maturity | (15) | | | (72) | |
Cost of equity securities acquired | (3) | | | (283) | |
Cost of other invested assets acquired | (298) | | | (308) | |
Net change in short-term investments | (625) | | | 878 | |
Net change in unsettled securities transactions | 41 | | | 23 | |
Net cash provided by (used in) investing activities | (2,752) | | | (757) | |
| | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | |
Common shares issued (redeemed) during the period for share-based compensation, net of expense | (19) | | | (15) | |
Purchase of treasury shares | — | | | (1) | |
Dividends paid to shareholders | (136) | | | (126) | |
Cost of shares withheld on settlements of share-based compensation awards | (20) | | | (17) | |
Net cash provided by (used in) financing activities | 1,269 | | | (159) | |
| | | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (7) | | | 30 | |
| | | |
Net increase (decrease) in cash | 668 | | | 675 | |
Cash, beginning of period | 1,398 | | | 1,441 | |
Cash, end of period | $ | 2,067 | | | $ | 2,116 | |
| | | |
SUPPLEMENTAL CASH FLOW INFORMATION: | | | |
Income taxes paid (recovered) | $ | 73 | | | $ | 101 | |
Interest paid | 64 | | | 48 | |
v3.23.2
Cover
|
Jul. 26, 2023 |
Cover [Abstract] |
|
Document Type |
8-K
|
Document Period End Date |
Jul. 26, 2023
|
Entity Registrant Name |
Everest Group, Ltd.
|
Entity Incorporation, State or Country Code |
D0
|
Entity File Number |
1-15731
|
Entity Tax Identification Number |
98-0365432
|
Entity Address, Address Line One |
Seon Place – 4th Floor
|
Entity Address, Address Line Two |
141 Front Street
|
Entity Address, Address Line Three |
PO Box HM 845
|
Entity Address, City or Town |
Hamilton
|
Entity Address, Country |
BM
|
Entity Address, Postal Zip Code |
HM 19
|
City Area Code |
441
|
Local Phone Number |
295-0006
|
Entity Information, Former Legal or Registered Name |
Everest Re Group, Ltd.
|
Written Communications |
false
|
Soliciting Material |
false
|
Pre-commencement Tender Offer |
false
|
Pre-commencement Issuer Tender Offer |
false
|
Title of 12(b) Security |
Common Shares, $0.01 par value
|
Trading Symbol |
EG
|
Security Exchange Name |
NYSE
|
Entity Emerging Growth Company |
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Amendment Flag |
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Entity Central Index Key |
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