Everest Reports Fourth Quarter and Full-Year 2024 Results

Annual Net Income of $1.4 billion and Net Operating Income of $1.3 billion

Decisive Actions to Fortify Reserves in U.S. Casualty Lines

Everest Group, Ltd. (NYSE: EG), a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions, today reported its fourth quarter 2024 results.

Full-Year 2024 Highlights

Total Shareholder Return of 9.2%1; 9.6% Net Income ROE and 9.0% Operating Income ROE
$18.2 billion in gross written premium with year-over-year growth of 9.1% for the Group, 12.2% for Reinsurance, and 4.0% for Insurance on a comparable basis
Combined ratios of 102.3% for the Group, 89.7% for Reinsurance and 130.7% for Insurance, which includes decisive actions to strengthen U.S. casualty reserves
Group attritional combined ratio of 87.6% when excluding the impact of 0.5 points from profit commissions associated with favorable loss reserve development on mortgage business versus 86.9% when excluding the impact of 0.7 points from profit commission associated with favorable development on mortgage business in the prior year. Group's 2024 attritional combined ratio of 87.6% also includes 1.4 points of 2024 accident year loss reserve strengthening.
$672 million of pre-tax catastrophe losses net of recoveries and reinstatement premiums, versus $451 million in the prior year
Net investment income increased over $500 million to ∼$2 billion, a company record
Strong operating cashflow for the year of $5.0 billion, a company record

Fourth Quarter 2024 Highlights

Net Loss of $593 million; Net Operating Loss of $780 million driven primarily by net unfavorable development of prior year loss reserves in U.S. casualty lines
$4.7 billion in gross written premium with year-over-year growth of 7.2% for the Group, 12.6% for Reinsurance, and -1.6% for Insurance on a comparable basis; Strong double-digit growth in property and specialty lines across both segments was partially offset by reductions in certain casualty lines
Combined ratios of 135.5% for the Group, 90.4% for Reinsurance and 239.2% for Insurance, which includes decisive actions to strengthen U.S. casualty reserves
Group attritional combined ratio of 91.6% when excluding the impact of 1.8 points from profit commissions associated with favorable loss reserve development on mortgage business versus 86.6% when excluding the impact of 2.7 points from profit commissions associated with favorable loss reserve development on mortgage business in the prior year. Group's fourth quarter 2024 attritional combined ratio of 91.6% also includes 5.8 points of 2024 accident year loss reserve strengthening.
Net unfavorable development of approximately $1.5 billion in prior year loss reserves, resulting in an increase of 37.6 points on the combined ratio for the Group
Increased current accident year losses by $229 million for the Group, comprised of $206 million in Insurance and $22 million in Other
Pre-tax underwriting income (loss) of ($1.4) billion for the Group, $286 million for Reinsurance, and ($1.3) billion for Insurance
$173 million of pre-tax catastrophe losses net of recoveries and reinstatement premiums versus $143 million in Q4 2023
Net investment income improved to $473 million versus $411 million in the prior year fourth quarter, driven by a larger asset base as well as strong core fixed income investment returns
Operating cashflow for the quarter of $780 million versus $1.0 billion in the prior year fourth quarter

(1) Denotes annualized figure; represents Total Shareholder Return or "TSR". Annualized TSR is calculated as year to date growth in book value per common share outstanding excluding URA(D) on fixed maturity, available for sale securities plus year-to-date dividends per share.

“This was a pivotal year for Everest as we took decisive action to fortify our U.S. casualty reserves, solidify our franchise value, and raise the bar across all facets of the Company,” said Jim Williamson, Everest President and CEO. “Our lead market Reinsurance franchise continues to demonstrate its value in the market, as evidenced by another well-executed January 1 renewal. In our Insurance business, the significant transformation of our North America insurance platform is well underway. We made meaningful progress improving our portfolio, all while taking aggressive underwriting action in U.S. casualty lines. Our team is energized about the opportunity ahead, and I firmly believe that our actions place Everest on a clear trajectory towards generating attractive returns throughout the cycle.”

Summary of Fourth Quarter 2024 Net Income and Other Items

Net (loss) of ($593 million), equal to ($13.96) per diluted share, driven by reserve strengthening in U.S. casualty lines, versus fourth quarter 2023 net income of $804 million, equal to $18.53 per diluted share
Net operating (loss) of ($780 million), equal to ($18.39) per diluted share, driven by reserve strengthening in U.S. casualty lines, versus fourth quarter 2023 net operating income of $1.1 billion, equal to $25.18 per diluted share
GAAP combined ratio of 135.5%, including 37.6 points of unfavorable prior year reserve development, 5.8 points of 2024 accident year strengthening, and 5.3 points of catastrophe losses, versus 93.2% in the fourth quarter 2023, including 4.3 points of catastrophe losses

California Wildfires

Pre-tax net catastrophe loss estimated to be in the range of $350 to $450 million for the first quarter 2025, net of estimated recoveries and reinstatement premiums
Everest's loss estimate is based on an insured industry loss range of $35 to $45 billion

The following table summarizes the Company’s Net Income and related financial metrics.

Net income and operating income

Year to Date

All values in USD millions except for per share amounts and percentages

2024

2023

Everest Group

Net income (loss)

(593)

1,373

804

2,517

Net operating income (loss) (2)

(780)

1,289

1,093

2,776

Net income (loss) per diluted common share

(13.96)

31.78

18.53

60.19

Net operating income (loss) per diluted common share (2)

(18.39)

29.83

25.18

66.39

Net income (loss) return on average equity (annualized)

(15.7%)

9.6%

23.8%

20.9%

After-tax net operating income (loss) return on average equity (annualized) (2)

(20.6%)

9.0%

32.4%

23.1%

Notes

(2) Denotes non-GAAP financial measure. See "Comments on Non-GAAP Financial Measures" for an explanation and reconciliation.

Shareholders' Equity and Book Value per Share

Year to Date

All values in USD millions except for per share amounts and percentages

2024

2023

Beginning shareholders' equity

15,335

13,202

11,226

8,441

Net income (loss)

(593)

1,373

804

2,517

Change - URA(D) of fixed maturity, available for sale securities

(630)

(127)

1,146

986

Dividends to shareholders

(86)

(334)

(76)

(288)

Purchase of treasury shares

—

(200)

—

Public equity offering of shares

—

1,445

Other

(151)

(39)

103

102

Ending shareholders' equity

13,875

13,202

Common shares outstanding

43.0

43.4

Book value per common share outstanding

322.97

304.29

Less: URA(D) of fixed maturity, available for sale securities

(19.77)

(16.65)

Book value per common share outstanding excluding URA(D) (3)

342.74

320.95

Change in BVPS adjusted for dividends

8.7%

44.3%

Total Shareholder Return ("TSR") - Annualized

9.2%

26.5%

Common share dividends paid - last 12 months

7.75

6.80

Notes

(3) Denotes non-GAAP financial measure. A reconciliation to book value per share, the most comparable GAAP measure, is included in the table above. See "Comments on Non-GAAP Financial Measures" for additional information.

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.

Underwriting information - Everest Group

Year to Date

Year on Year Change

All values in USD millions except for percentages

2024

2023

Year to Date

Gross written premium

4,671

18,232

4,323

16,637

8.0%

9.6%

Net written premium

4,026

15,814

3,861

14,730

4.3%

7.4%

Loss Ratio:

Current year

63.4%

59.8%

58.9%

59.2%

4.5 pts

0.6 pts

Prior year

37.6%

9.7%

(0.1)%

—%

37.7 pts

9.8 pts

Catastrophe

5.3%

5.0%

4.3%

3.5%

1.0 pts

1.5 pts

Total Loss ratio

106.3%

74.4%

63.0%

62.7%

43.3 pts

11.7 pts

Commission and brokerage ratio

23.0%

21.7%

23.8%

22.0%

(0.8) pts

(0.3) pts

Other underwriting expenses

6.2%

6.3%

(0.1) pts

Combined ratio

135.5%

102.3%

93.2%

90.9%

42.3 pts

11.4 pts

Attritional combined ratio (4) (6) (7)

93.4%

88.1%

89.3%

87.6%

4.1 pts

0.5 pts

Pre-tax net catastrophe losses (5)

173

672

143

451

Pre-tax net unfavorable (favorable) prior year reserve development

1,475

(5)

Notes

(4) Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, prior year development, COVID-19 losses and losses from the Russia/Ukraine war. Attritional combined ratio is a non-GAAP financial measure. See "Comments on Non-GAAP Financial Measures" for an explanation and reconciliation.

(5) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums.

(6) The attritional combined ratio for the quarter and year -end December 31, 2024, included approximately $68m of profit commission related to loss reserves releases from the mortgage business. Excluding this profit commission, Group’s attritional combined ratio would have been 91.6% and 87.6% for the quarter and year ended December 31, 2024.

(7) The attritional combined ratio for the quarter and year -end December 31, 2023, included approximately $94m of profit commission related to loss reserves releases from the mortgage business. Excluding this profit commission, Group’s attritional combined ratio would have been 86.6% and 86.9% for the quarter and year ended December 31, 2023.

Reinsurance Segment – Quarterly Highlights

Gross written premiums grew 12.6% on a comparable basis (constant dollar basis and excluding reinstatement premiums)2, to approximately $3.3 billion. We continue to solidify our franchise value and drive growth in lines with the best expected risk-adjusted returns.
Growth was led by a 54.4% increase in Property Catastrophe XOL and 19.9% in Property Pro-Rata, partially offset by a 7.3% decrease in Casualty Pro-Rata, when adjusting for reinstatement premiums.
Attritional loss ratio improved 90 basis points over last year to 56.9%, while the attritional combined ratio improved 140 basis points to 83.7% versus a year ago, when excluding the impact of 2.3 points and 3.6 points from profit commissions associated with favorable loss reserve development on mortgage business for the quarters ended December 31, 2024 and 2023, respectively.
Strengthened U.S. casualty reserves by $684 million, fully offset by favorable development of well-seasoned reserves in property and mortgage lines.
Pre-tax catastrophe losses were $125 million, net of estimated recoveries and reinstatement premiums, driven primarily by $275 million of losses from Hurricane Milton. Catastrophe losses in the quarter were partially offset by a release of $125 million on prior year events, primarily related to Hurricane Ian.
Risk-adjusted returns remain very attractive, particularly in property and specialty lines.

Underwriting information - Reinsurance segment

Year to Date

Year on Year Change

All values in USD millions except for percentages

2024

2023

Year to Date

Gross written premium

3,291

12,941

2,894

11,460

13.7%

12.9%

Net written premium

3,019

11,969

2,754

10,802

9.6%

10.8%

Loss Ratio:

Current year

56.2%

56.6%

57.6%

(1.4) pts

(1.0) pts

Prior year

—%

(15.3)%

(4.1)%

15.3 pts

4.1 pts

Catastrophe

5.4%

5.7%

5.5%

4.6%

(0.1) pts

1.1 pts

Total Loss ratio

61.6%

62.2%

47.8%

58.1%

13.8 pts

4.2 pts

Commission and brokerage ratio

26.3%

24.9%

28.3%

25.7%

(2.0) pts

(0.8) pts

Other underwriting expenses

2.5%

2.6%

— pts

(0.1) pts

Combined ratio

90.4%

89.7%

78.6%

86.4%

11.8 pts

3.3 pts

Attritional combined ratio (4) (8) (9)

86.0%

84.6%

88.7%

86.1%

(2.7) pts

(1.5) pts

Pre-tax net catastrophe losses (5)

125

564

135

430

Pre-tax net unfavorable (favorable) prior year reserve development

—

(401)

Notes

(2) Denotes non-GAAP financial measure. See "Comments on Non-GAAP Financial Measures" for an explanation and reconciliation.

(5) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums.

(8) The attritional combined ratio for the quarter and year -end December 31, 2024, included approximately $68m of profit commission related to loss reserves releases from the mortgage business. Excluding this profit commission, Reinsurance’s attritional combined ratio would have been 83.7% and 84.0% for the quarter and year ended December 31, 2024.

(9) The attritional combined ratio for the quarter and year -end December 31, 2023, included approximately $94m of profit commission related to loss reserves releases from the mortgage business. Excluding this profit commission, Reinsurance’s attritional combined ratio would have been 85.1% for both the quarter and year ended December 31, 2023.

Insurance Segment – Quarterly Highlights

Gross written premiums decreased to $1.4 billion on a comparable basis (constant dollar basis and excluding reinstatement premiums)2, a 1.6% decrease year-over-year in constant dollars as we continued to strategically shape the portfolio. Our International business continued its strong growth trajectory as it gained further traction.
Everest Insurance grew by 32.3% in Property/Short Tail and 37.2% in Other Specialty lines. Growth was offset by a decrease of 36.9% in Accident and Health, as we exit the medical stop loss business, and 20.0% in Specialty Casualty, primarily in North America, reflecting our focus on lines of business with better expected margins.
Strengthened prior year U.S. casualty reserves by $1.1 billion and increased current accident year losses in U.S. casualty lines by $206 million, totaling $1.3 billion.
Pre-tax catastrophe losses were $47 million, net of estimated recoveries and reinstatement premiums, an increase over the prior year quarter, which benefited from benign catastrophe losses.
Pricing continues to accelerate across North American long-tail lines (excluding financial lines).

Underwriting information - Insurance segment

Year to Date

Year on Year Change

All values in USD millions except for percentages

2024

2023

Year to Date

Gross written premium

1,350

5,078

1,371

4,888

(1.5)%

3.9%

Net written premium

984

3,678

1,063

3,704

(7.5)%

(0.7)%

Loss Ratio:

Current year

84.2%

68.3%

62.3%

63.3%

21.9 pts

4.9 pts

Prior year

119.2%

30.0%

32.4%

8.3%

86.8 pts

21.6 pts

Catastrophe

5.3%

3.0%

0.9%

0.6%

4.4 pts

2.4 pts

Total Loss ratio

208.7%

101.2%

95.6%

72.3%

113.1 pts

28.9 pts

Commission and brokerage ratio

12.6%

12.3%

11.6%

12.0%

1.0 pts

0.3 pts

Other underwriting expenses

17.9%

17.2%

16.6%

16.3%

1.3 pts

0.9 pts

Combined ratio

239.2%

130.7%

123.8%

100.5%

115.4 pts

30.1 pts

Attritional combined ratio (4)

114.4%

97.5%

90.6%

91.6%

23.8 pts

5.9 pts

Pre-tax net catastrophe losses (5)

107

Pre-tax net unfavorable (favorable) prior year reserve development

1,072

293

285

Notes

(2) Denotes non-GAAP financial measure. See "Comments on Non-GAAP Financial Measures" for an explanation and reconciliation.

(5) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums.

Other Segment

As disclosed in an 8-K filed with the SEC after the market close on January 27, 2025, we formed a new “Other” segment, primarily comprised of certain sports and leisure lines after giving effect to the sale of the business in October 2024, and other non-core lines of business such as asbestos & environmental exposures, and certain discontinued insurance programs and coverage classes, predominantly in U.S. casualty lines.
Unfavorable development in our Other segment amounted to $425 million for both the full-year and fourth quarter 2024, including current accident year strengthening of $22 million.
Strengthened asbestos & environmental reserves by $54 million during the fourth quarter resulting in a 3-year net asbestos survival ratio of 6.6 years.

Underwriting information - Other segment

Year to Date

All values in USD millions except for percentages

2024

2023

Gross written premium

212

289

Net written premium

167

225

Net premiums earned

197

225

Incurred losses and LAE

Current year

175

156

Prior year

403

102

110

Catastrophes

—

Total incurred losses and LAE

457

580

140

266

Commission, brokerage, taxes and fees

Other underwriting expenses

Underwriting income (loss)

(429)

(440)

(99)

(98)

Investments and Shareholders’ Equity as of December 31, 2024

Total invested assets and cash of $41.5 billion versus $37.1 billion on December 31, 2023
Shareholders’ equity of $13.9 billion vs. $13.2 billion on December 31, 2023, including $849 million of unrealized net losses on fixed maturity, available for sale securities
Shareholders’ equity excluding unrealized gains (losses) on fixed maturity, available for sale securities of $14.7 billion versus $13.9 billion on December 31, 2023
Book value per share of $322.97 versus $304.29 at December 31, 2023
Book value per share excluding unrealized gains (losses) on fixed maturity, available for sale securities of $342.74 versus $320.95 at December 31, 2023
There were not any common share repurchases during the quarter. We repurchased $199.9 million for the full-year 2024.
Common share dividends declared and paid in the quarter of $2.00 per common share equal to $86 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 reflect management’s current expectations based on assumptions we believe are reasonable but are not guarantees of performance. Actual results may differ materially from those contained in forward-looking statements made on behalf of the Company. The forward-looking statements involve risks and uncertainties that include, but are not limited to, 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, pandemics, regulatory and legal uncertainties and other factors described in our SEC filings, including 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 February 4, 2025. The call will be available on the Internet through the Company’s website at https://investors.everestglobal.com/overview.

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.

Comments on Non-GAAP Financial Measures

In this Press Release, the Company has included certain non-GAAP financial measures, including after-tax net operating income (loss), after-tax net operating income (loss) per diluted share, attritional combined ratio, gross written premiums presented on a comparable basis, net operating income return on equity ("ROE"), underwriting income, and book value per common share outstanding excluding net unrealized appreciation (depreciation) on fixed maturity, available for sale securities ("URA(D)"). The Company presents these non-GAAP financial measures to facilitate a deeper understanding of the profitability drivers of our business, results of operations, financial condition and liquidity. The Company believes that such measures are important to investors and other interested persons, and that these measures are a useful supplement to GAAP information concerning the Company’s performance. These measures may not, however, be comparable to similarly titled measures used by companies within or outside of the insurance industry. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, or superior to, the Company’s financial measures prepared in accordance with generally accepted accounting principles ("GAAP").

A reconciliation of the non-GAAP financial measures to the most comparable corresponding GAAP financial measure is included below.

After-tax net operating income (loss) and after-tax net operating income (loss) per diluted share

After-tax net operating income (loss) (also referred to in this release as net operating income) consists of net income (loss) excluding after-tax net gains (losses) on investments and after-tax net foreign exchange income (expense), as shown below:

(Dollars in millions, except per share amounts)

Three Months Ended December 31,

Twelve Months Ended December 31,

2024

2023

2024

2023

(unaudited)

Amount

Per Diluted Share

Amount

Per Diluted Share

Amount

Per Diluted Share

Amount

Per Diluted Share

After-tax net operating income (loss)

(780

)

(18.39

)

1,093

25.18

1,289

29.83

2,776

66.39

After-tax net gains (losses) on investments

1.33

(220

)

(5.06

)

0.28

(236

)

(5.65

)

After-tax net foreign exchange income (expense)

132

3.10

(69

)

(1.60

)

1.67

(23

)

(0.55

)

Net income (loss)

(593

)

(13.96

)

804

18.53

1,373

31.78

2,517

60.19

(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 are 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 net operating income (loss) in their analyses for the reasons discussed above. The Company provides after-tax net 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.

Attritional Loss Ratio and Attritional Combined Ratio

The loss ratio is calculated as the sum of total incurred losses and loss adjustment expenses, divided by net premiums earned. The combined ratio is calculated as the sum of total incurred losses and loss adjustment expenses, commission and brokerage expenses, and other underwriting expenses, divided by net premiums earned. The attritional loss ratio and attritional combined ratio are defined as the loss ratio and the combined ratio, respectively, adjusted to exclude catastrophe losses, net catastrophe reinstatement premiums, prior year development, COVID-19 losses and losses from the Russia/Ukraine war. The Company believes the attritional ratios are useful to management and investors because the adjusted ratios provide for better comparability and more accurately measure the Company’s underlying underwriting performance. The following tables are a reconciliation of the loss ratio and attritional loss ratio, and the combined ratio and attritional combined ratio for the periods noted:

Three Months Ended December 31,

2024

2023

(unaudited)

Reinsurance

Insurance

Group

Reinsurance

Insurance

Group

Loss ratio

61.6

208.7

106.3

47.8

95.6

63.0

Adjustment for catastrophe losses

(5.4

(5.3

(5.5

(0.9

(4.3

Adjustment for reinstatement premiums

0.7

—

0.6

0.2

—

0.1

Adjustment for prior year development (10)

—

(119.2

(37.6

14.9

(32.4

(0.2

Adjustment for Russia/Ukraine war losses

—

0.4

—

0.3

Adjustment for other items

—

(0.3

—

Attritional loss ratio

56.9

84.0

63.9

57.8

62.3

59.0

(Some amounts may not reconcile due to rounding.)

Three Months Ended December 31,

2024

2023

(unaudited)

Reinsurance

Insurance

Group

Reinsurance

Insurance

Group

Combined ratio

90.4

239.2

135.5

78.6

123.8

93.2

Adjustment for catastrophe losses

(5.4

(5.3

(5.5

(0.9

(4.3

Adjustment for reinstatement premiums

1.0

—

0.8

0.3

—

0.2

Adjustment for prior year development (10)

—

(119.2

(37.6

14.9

(32.4

(0.2

Adjustment for Russia/Ukraine war losses

—

0.4

—

0.3

Adjustment for other items

—

(0.4

(0.1

—

0.1

—

Attritional combined ratio

86.0

114.4

93.4

88.7

90.6

89.3

Adjustment for profit commission

(2.3

—

(1.8

(3.6

—

(2.7

Attritional combined ratio excluding profit commission

83.7

114.4

91.6

85.1

90.6

86.6

(Some amounts may not reconcile due to rounding.)

Twelve Months Ended December 31,

2024

2023

(unaudited)

Reinsurance

Insurance

Group

Reinsurance

Insurance

Group

Combined ratio

89.7

130.7

102.3

86.4

100.5

90.9

Adjustment for catastrophe losses

(5.7

(3.0

(5.0

(4.6

(0.6

(3.5

Adjustment for reinstatement premiums

0.6

—

0.5

0.2

—

0.1

Adjustment for prior year development (10)

—

(30.0

(9.7

4.0

(8.3

—

Adjustment for Russia/Ukraine war losses

—

0.1

—

0.1

Adjustment for other items

—

(0.2

—

Attritional combined ratio

84.6

97.5

88.1

86.1

91.6

87.6

Adjustment for profit commission

(0.6

—

(0.5

(1.0

—

(0.7

Attritional combined ratio excluding profit commission

84.0

97.5

87.6

85.1

91.6

86.9

(Some amounts may not reconcile due to rounding.)

Notes

(10) Prior-year development includes the impact of COVID-19 losses.

Gross Written Premium on a Comparable Basis

The Company has included in this Press Release certain changes in gross written premium on a comparable basis, reflecting constant currency basis and excluding reinstatement premiums. Constant currency basis excludes the impact of foreign exchange rates. The Company provides change in gross written premium on a comparable basis to investors so that they have what management believes to be a useful supplement to GAAP information concerning the Company’s performance. The following tables are a reconciliation of gross written premium and period-over-period changes on a GAAP basis to the non-GAAP comparable basis for the periods noted:

(Dollars in millions)

Quarter-to-Date

December 31, 2024

December 31, 2023

Change

(unaudited)

Gross Written Premium

% Impact

Group

4,671

4,323

8.0

Adjustment for gross CAT reinstatement premiums

(51

)

(0.9

Adjustment for foreign exchange effect

—

)

0.1

Group (comparable basis)

4,620

4,308

7.2

Reinsurance

3,291

2,894

13.7

Adjustment for gross CAT reinstatement premiums

(51

)

(1.2

Adjustment for foreign exchange effect

—

)

0.2

Reinsurance (comparable basis)

3,240

2,879

12.6

Insurance

1,350

1,371

(1.5

Adjustment for gross CAT reinstatement premiums

—

Adjustment for foreign exchange effect

—

(0.1

Insurance (comparable basis)

1,350

1,372

(1.6

Other

(49.1

Other (comparable basis)

(49.1

(Some amounts may not reconcile due to rounding.)

(Dollars in millions)

Year-to-Date

December 31, 2024

December 31, 2023

Change

(unaudited)

Gross Written Premium

% Impact

Group

18,232

16,637

9.6

Adjustment for gross CAT reinstatement premiums

(103

)

(20

)

(0.4

Adjustment for foreign exchange effect

—

)

—

Group (comparable basis)

18,129

16,611

9.1

Reinsurance

12,941

11,460

12.9

Adjustment for gross CAT reinstatement premiums

(103

)

(20

)

(0.6

Adjustment for foreign exchange effect

—

Reinsurance (comparable basis)

12,838

11,440

12.2

Insurance

5,078

4,888

3.9

Adjustment for gross CAT reinstatement premiums

—

Adjustment for foreign exchange effect

—

)

0.1

Insurance (comparable basis)

5,078

4,882

4.0

Other

212

289

(26.6

Other (comparable basis)

212

289

(26.6

(Some amounts may not reconcile due to rounding.)

Net Operating Income Return On Equity ("ROE")

Net Operating income ROE is calculated by dividing after-tax net operating income (loss) by average shareholders' equity, adjusted for average net unrealized depreciation (appreciation) of fixed maturity, available for sale securities. A reconciliation of net income, the most comparable GAAP measure, to net operating income is presented above. The Company believes net operating income ROE is a useful measure for management and investors as it allows for better comparability and removes variability when assessing the results of operations. A reconciliation of Net Operating Income ROE and Net Income ROE is shown below.

Quarter-to-Date

Year-to-Date

(Dollars in millions)

December 31,

2024

2023

2024

2023

(unaudited)

Beginning of period shareholders' equity

15,335

11,226

13,202

8,441

Add: Net unrealized depreciation (appreciation) of fixed maturity, available for sale securities

220

1,868

723

1,709

Adjusted beginning of period shareholders' equity

15,555

13,094

13,925

10,149

End of period shareholders' equity

13,875

13,202

13,875

13,202

Add: Net unrealized depreciation (appreciation) of fixed maturity, available for sale securities

849

723

849

723

Adjusted end of period shareholders' equity

14,724

13,925

14,724

13,925

Average adjusted shareholders' equity

15,140

13,509

14,325

12,037

After-tax net operating income (loss)

(780

)

1,093

1,289

2,776

After-tax net gains (losses) on investments

(220

)

(236

)

After-tax foreign exchange income (expense)

132

(69

)

(23

)

Net income (loss)

(593

)

804

1,373

2,517

Return on equity (annualized)

After-tax net operating income (loss)

(20.6

32.4

9.0

23.1

After-tax net gains (losses) on investments

1.5

(6.5

0.1

(2.0

After-tax foreign exchange income (expense)

3.5

(2.1

0.5

(0.2

Net income (loss)

(15.7

23.8

9.6

20.9

(Some amounts may not reconcile due to rounding.)

Underwriting Income

Underwriting income is calculated as net premiums earned, less (1) incurred losses and loss adjustment expenses, (2) commission, brokerage, taxes and fees, and (3) other underwriting expenses. Net income (loss) is the most comparable GAAP measure. The Company believes underwriting income is a useful measure for management and investors when assessing the performance of the Company's reinsurance and insurance business segments. A reconciliation of Underwriting Income and Net Income is shown below.

Quarter-to-Date

(Dollars in millions)

December 31, 2024

December 31, 2023

(unaudited)

Reinsurance

Insurance

Other

Consolidated Group

Reinsurance

Insurance

Other

Consolidated Group

Net premiums earned

2,983

900

3,925

2,616

905

3,578

Less: Incurred losses and LAE

1,837

1,877

457

4,172

1,249

865

140

2,254

Less: Commission, brokerage, taxes and fees

784

114

903

742

105

853

Less: Other underwriting expenses

161

244

150

226

Underwriting income (loss)

286

(1,252

)

(429

)

(1,394

)

559

(216

)

(99

)

245

Net investment income

473

411

Net gains (losses) on investments

(255

)

Corporate expenses

(27

)

(18

)

Interest, fee and bond issue cost amortization expense

(37

)

(36

)

Other income (expense)

169

(75

)

Income tax benefit (expense)

155

532

Net income (loss)

(593

)

804

(Some amounts may not reconcile due to rounding.)

Book value per common share outstanding excluding URA(D)

Book value per common share outstanding excluding net unrealized appreciation (depreciation) of fixed maturity, available for sale securities ("URA(D)") is calculated as reported shareholders' equity less URA(D), divided by common shares outstanding. Book value per share is the most comparable GAAP measure. The Company believes this metric is useful to management and investors as it shows the value of shareholder returns on a per share basis after eliminating the variability of investments held at fair value. Please see the table on page 4 for a reconciliation of book value per common share outstanding (excluding URA(D)) and book value per share.

Annualized Total Shareholder Return

Annualized TSR ("TSR") is calculated as year-to-date growth in book value per common share outstanding (excluding URA(D)) plus year-to-date dividends per share. As further discussed above, book value per common share outstanding (excluding URA(D)) is a non-GAAP measure. Please see the table on page 4 for a reconciliation of book value per common share outstanding (excluding URA(D)) and book value per share.

--Financial Details Follow--

EVEREST GROUP, LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

Three Months Ended

Twelve Months Ended

December 31

(Dollars in millions, except per share amounts)

2024

2023

2024

2023

(unaudited)

REVENUES:

Premiums earned

3,925

3,578

15,187

13,443

Net investment income

473

411

1,954

1,434

Total net gains (losses) on investments

(255

)

(276

)

Other income (expense)

169

(75

)

121

(14

)

Total revenues

4,636

3,659

17,281

14,587

CLAIMS AND EXPENSES:

Incurred losses and loss adjustment expenses

4,172

2,254

11,305

8,427

Commission, brokerage, taxes and fees

903

853

3,300

2,952

Other underwriting expenses

244

226

938

846

Corporate expenses

Interest, fees and bond issue cost amortization expense

149

134

Total claims and expenses

5,383

3,387

15,787

12,432

INCOME (LOSS) BEFORE TAXES

(748

)

272

1,493

2,154

Income tax expense (benefit)

(155

)

(532

)

120

(363

)

NET INCOME (LOSS)

(593

)

804

1,373

2,517

Other comprehensive income (loss), net of tax:

Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period

(574

)

923

(97

)

743

Reclassification adjustment for realized losses (gains) included in net income (loss)

(55

)

223

(12

)

244

Total URA(D) on securities arising during the period

(630

)

1,146

(109

)

986

Foreign currency translation and other adjustments

(173

)

(128

)

Benefit plan actuarial net gain (loss) for the period

Reclassification adjustment for amortization of net (gain) loss included in net income (loss)

(26

)

—

)

Total benefit plan net gain (loss) for the period

Total other comprehensive income (loss), net of tax

(794

)

1,238

(204

)

1,063

COMPREHENSIVE INCOME (LOSS)

(1,387

)

2,041

1,169

3,580

EARNINGS PER COMMON SHARE:

Basic

(13.96

)

18.53

31.78

60.19

Diluted

(13.96

)

18.53

31.78

60.19

EVEREST GROUP, LTD.

CONSOLIDATED BALANCE SHEETS

December 31,

(In millions of U.S. dollars, except par value per share)

2024

2023

(unaudited)

ASSETS:

Fixed maturities - available for sale, at fair value

28,908

27,740

(amortized cost: 2024, $29,934; 2023, $28,568, credit allowances: 2024, $(36); 2023, $(48))

Fixed maturities - held to maturity, at amortized cost

(fair value: 2024, $759; 2023, $854, net of credit allowances: 2024, $(8); 2023, $(8))

757

855

Equity securities, at fair value

217

188

Other invested assets

5,392

4,794

Short-term investments

4,707

2,127

Cash

1,549

1,437

Total investments and cash

41,531

37,142

Accrued investment income

368

324

Premiums receivable (net of credit allowances: 2024, $(54); 2023, $(41))

5,378

4,768

Reinsurance paid loss recoverables (net of credit allowances: 2024, $(41); 2023, $(26))

207

164

Reinsurance unpaid loss recoverables

2,915

2,098

Funds held by reinsureds

1,218

1,135

Deferred acquisition costs

1,461

1,247

Prepaid reinsurance premiums

869

713

Income tax asset, net

1,223

868

Other assets (net of credit allowances: 2024, $(9); 2023, $(9))

1,171

941

TOTAL ASSETS

56,341

49,399

LIABILITIES:

Reserve for losses and loss adjustment expenses

29,889

24,604

Unearned premium reserve

7,324

6,622

Funds held under reinsurance treaties

Amounts due to reinsurers

701

650

Losses in course of payment

241

171

Senior notes

2,350

2,349

Long-term notes

218

Borrowings from FHLB

1,019

819

Accrued interest on debt and borrowings

Unsettled securities payable

137

Other liabilities

590

582

TOTAL LIABILITIES

42,466

36,197

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; 74.3 (2024) and 74.2 (2023)

outstanding before treasury shares

Additional paid-in capital

3,812

3,773

Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit)

of $(177) at 2024 and $(99) at 2023

(1,138

)

(934

)

Treasury shares, at cost: 31.3 shares (2024) and 30.8 shares (2023)

(4,108

)

(3,908

)

Retained earnings

15,309

14,270

Total shareholders' equity

13,875

13,202

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

56,341

49,399

EVEREST GROUP, LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Twelve Months Ended

December 31

(In millions of U.S. dollars)

2024

2023

(unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)

1,373

2,517

Adjustments to reconcile net income to net cash provided by operating activities:

Decrease (increase) in premiums receivable

(715

)

(1,064

)

Decrease (increase) in funds held by reinsureds, net

(81

)

(66

)

Decrease (increase) in reinsurance recoverables

(1,091

)

143

Decrease (increase) in income taxes

(277

)

(559

)

Decrease (increase) in prepaid reinsurance premiums

(232

)

(46

)

Increase (decrease) in reserve for losses and loss adjustment expenses

5,612

2,256

Increase (decrease) in unearned premiums

809

1,387

Increase (decrease) in amounts due to reinsurers

135

Increase (decrease) in losses in course of payment

Change in equity adjustments in limited partnerships

(261

)

(168

)

Distribution of limited partnership income

163

120

Change in other assets and liabilities, net

(431

)

(339

)

Non-cash compensation expense

Amortization of bond premium (accrual of bond discount)

(167

)

(64

)

Net (gains) losses on investments

(19

)

276

Net cash provided by (used in) operating activities

4,957

4,553

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from fixed maturities matured/called/repaid - available for sale

3,783

2,310

Proceeds from fixed maturities sold - available for sale

6,257

3,849

Proceeds from fixed maturities matured/called/repaid - held to maturity

157

105

Proceeds from equity securities sold

126

Distributions from other invested assets

409

245

Cost of fixed maturities acquired - available for sale

(11,563

)

(10,653

)

Cost of fixed maturities acquired - held to maturity

(49

)

(112

)

Cost of equity securities acquired

(50

)

(17

)

Cost of other invested assets acquired

(936

)

(902

)

Net change in short-term investments

(2,494

)

(1,034

)

Net change in unsettled securities transactions

(27

)

181

Net cash provided by (used in) investing activities

(4,478

)

(5,902

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Common shares issued (redeemed) during the period for share-based compensation, net of expense

(24

)

(23

)

Proceeds from public offering of common shares

—

1,445

Purchase of treasury shares

(200

)

—

Dividends paid to shareholders

(334

)

(288

)

Net FHLB borrowings (repayments)

200

300

Cost of shares withheld on settlements of share-based compensation awards

(25

)

(24

)

Net cash provided by (used in) financing activities

(383

)

1,409

EFFECT OF EXCHANGE RATE CHANGES ON CASH

(23

)

Net increase (decrease) in cash

112

Cash, beginning of period

1,437

1,398

Cash, end of period

1,549

1,437

SUPPLEMENTAL CASH FLOW INFORMATION:

Income taxes paid (recovered)

397

196

Interest paid

147

130

NON-CASH TRANSACTIONS:

Non-cash limited partnership distribution

—

View source version on businesswire.com: https://www.businesswire.com/news/home/20250203387842/en/

Media: Dawn Lauer Chief Communications Officer 908.300.7670

Investors: Matt Rohrmann Head of Investor Relations 908.604.7343

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