Everest Re Group to Hold Second Quarter 2023 Earnings Conference Call on Thursday, July 27, 2023
Everest Re Group, Ltd. (“Everest”) will hold its second quarter 2023 earnings conference call on Thursday, July 27, 2023, beginning at 8:00 am Eastern Time.
Dial in details can be obtained by completing the registration form available at:
https://dpregister.com/sreg/10178895/f970c5f2cd
The call can be accessed via a live, listen only webcast at www.everestglobal.com/Investors where a replay of the call will also be available.
Everest will release financial results on July 26, 2023 after the NYSE market close. At that time, Everest’s earnings release and financial supplement will be made available at www.everestglobal.com/Investors.
Everest will change its name to Everest Group, Ltd. and will trade under the new ticker symbol (NYSE: EG), effective July 10, 2023.
Everest Appoints Brent Hoffman as Interim General Counsel; Announces the Departure of Sanjoy Mukherjee
Everest Re Group, Ltd. (“Everest”) (NYSE: RE), a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions, announced that Brent Hoffman has been appointed interim General Counsel, replacing Sanjoy Mukherjee who will be leaving the Company to pursue other opportunities effective April 21, 2023. The Company will be conducting a search for Mr. Mukherjee’s permanent replacement.
Mr. Hoffman brings more than 25 years of extensive legal and industry experience to the role. Prior to joining Everest, he served in several senior claims and legal positions at major global (re)insurance organizations and private practice, recently as AXA XL’s Chief Claims Officer, where he led the company’s global claims strategy and operations across multiple business lines and geographies. He also served as General Counsel – Global Claims, where he led AXA XL’s in-house legal team supporting all aspects of the company’s global claims operations. Additionally, Mr. Hoffman held senior leadership positions at The Hartford Financial Services Group, Inc., overseeing claims, litigation, and settlement strategies. He received his Bachelor of Arts from Gettysburg College and a Juris Doctor from The Dickinson School of Law.
“We are grateful for Sanjoy’s years of service to Everest and wish him all the best in his future endeavors,” said Juan C. Andrade, Everest’s President and CEO. “We welcome Brent to lead our strong legal team in the interim. His deep understanding of our business, proven leadership and industry acumen make him well suited for the role. I look forward to working closely with Brent as we continue to position Everest for future opportunity.”
After his departure on April 21, Mr. Mukherjee will remain available as an advisor to Everest to assist in the transition into July 2023.
In addition to his role as interim General Counsel of Everest, Mr. Hoffman will retain his position as Head of Claims and Chief Operations Officer for the Company’s Reinsurance business.
Everest Re Group Reports Fourth Quarter and Full Year 2021 Results
Everest Re Group, Ltd. (“Everest” or the “Group”) reported its fourth quarter and full year 2021 results.
Fourth Quarter 2021 Highlights
Year over year gross written premium (“GWP”) growth of 25% for the Group, 26% for Reinsurance and 21% for Insurance
Combined ratio of 91.9% for the Group, 91.5% for Reinsurance and 92.8% for Insurance
Attritional combined ratios of 87.4% for the Group, 86.4% for the Reinsurance segment and 90.4% for Insurance
Pre-tax underwriting income of $228 million including pre-tax catastrophe losses net of reinsurance and reinstatement premiums of $125 million
Pre-tax net investment income of $205 million, well balanced between fixed income and limited partnership returns
$1.0 billion in 31-year, 3.125% coupon senior notes issued on October 4, 2021
Full Year 2021 Highlights
Net income of $1.380 billion representing a total shareholder return of 14.7%
Pre-tax net investment income of $1.165 billion, well balanced between fixed income and limited partnership returns
Pre-tax underwriting income of $224 million inclusive of pre-tax catastrophe losses net of reinsurance and reinstatement premiums of $1.065 billion
$13.0 billion in total 2021 GWP. $9 billion reinsurance and $4 billion insurance
Year over year gross written premium (“GWP”) growth of 25% for the Group, 25% for Reinsurance, and 24% for Insurance
Attritional combined ratios of 87.6% for the Group, 86.3% for the Reinsurance segment and 91.2% for Insurance
Operating cash flow of $3.8 billion
Common share repurchases of $25 million during the quarter and $225 million for the full year 2021
Everest Re Group President & CEO Juan C. Andrade commented on the Company’s results:
“2021 was a pivotal year of continued profitable growth and momentum for Everest. We finished the year with a strong quarter and achieved record growth in both our underwriting businesses, drove expanding margins, solid underwriting profitability in an elevated natural catastrophe year, and generated exceptional investment income. These results led to $1.4 billion in net income for the year, and a milestone 14.7% total shareholder return. 2021 demonstrated the strong earnings power of our diversified franchises to create value for our shareholders. With a more profitable book of business coming out of a well-executed January 1 reinsurance renewal season, an expanding global value proposition, a strong balance sheet, and exceptional talent, we enter 2022 well-positioned to deliver on our long-term strategic objectives.”
Summary of Fourth Quarter 2021 Net Income and Other Items
Net income of $431 million, equal to $10.94 per diluted share vs. net income of $64 million, equal to $1.59 per diluted share in the fourth quarter 2020
Net operating income $359 million, equal to $9.12 per diluted share vs. net operating income (loss) of $(44) million, equal to $(1.12) per share in the fourth quarter 2020
Underwriting gain of $228 million including $125 million of catastrophe losses net of recoveries and reinstatement premiums. Catastrophe events comprised of Canadian drought losses of $80 million and quad-state tornado losses of $45 million.
GAAP combined ratio of 91.9% which includes 4.5 points of catastrophe losses vs. 2.9 points of catastrophe losses in the same period during 2020
No change to Covid-19 Pandemic (“Pandemic”) ultimate loss provision of $511 million
Operating cashflow for the quarter of $1.04 billion vs $683 million in the same period during 2020.
View Full Press Release
Everest Appoints Industry-Leading Reinsurance Executive Jill Beggs to Senior Vice President and Head of North America Reinsurance
Everest Re Group, Ltd. announced that reinsurance industry leader Jill Beggs will join the company as Senior Vice President and Head of North America Reinsurance effective November 15, 2021. Beggs will oversee the strategic direction of Everest’s reinsurance business in the United States, Canada, and Bermuda, and will report directly to Jim Williamson, Everest Group COO and Head of Reinsurance. This newly created role, along with the ongoing investments in the company’s reinsurance talent are designed to strengthen Everest’s leading market position and accelerate progress toward its strategic plan objectives outlined to investors earlier in the year.
“Everest’s leading global market position is fueled by exceptional talent. Adding Jill’s tremendous reinsurance experience to our seasoned team helps us to further capitalize on it,” said Juan C. Andrade, Everest President and CEO. “Everest is building a well-diversified, world-class organization set apart by our people, value proposition and entrepreneurial culture. We will continue to invest in the strength of our reinsurance and insurance franchises, positioning Everest to support future growth and create even greater value for our colleagues, customers and our shareholders.”
Beggs comes to Everest with 30 years of deep reinsurance underwriting expertise. Beggs joins Everest from Munich Re where, over the last 20 years, she held various key roles leading U.S. treaty and facultative programs across multiple lines of business. She is also credited with spearheading the company’s innovation incubator and E&S insurance start-up. Beggs spent the first 10 years of her career at Everest in treaty property underwriting in the U.S. and Latin America. Beggs is a prolific industry thought leader, and the recipient of numerous industry honors and awards.
“I’m thrilled to be returning to my roots with the incredible opportunity to build on the strength of Everest’s reinsurance franchise,” said Jill Beggs. “Everest has always been known for exceptional quality and long-standing relationships with its brokers and cedents. I plan to optimize this position and further solidify Everest as an industry leader.”
The company also announced that Everest Insurance leader Connie Germano will be transitioning to its reinsurance division as Senior Vice President, Treaty Casualty & Surety. Germano brings 35 years of casualty underwriting experience to the role and will report directly to Beggs. Most recently Germano was President of Specialty Casualty at Everest Insurance. Prior to that, she held senior casualty underwriting roles with ACE in the U.S. and Zurich, Switzerland. Germano succeeds Everest Reinsurance veteran Dennis Alba, who will retire in 2022 after a very successful 40-year career in the industry.
“Jill is a widely-recognized industry talent who brings an extraordinary depth of experience leading teams through growth and transformation,” said Jim Williamson, Group COO and Everest Head of Reinsurance. “This newly created position, combined with our recent promotions and appointments, is directly tied to our long-term strategy of solidifying our position as a leading global reinsurer. As we continue to position the business for the future, we are expanding advancement opportunities for our people that will ultimately better serve the market.”
Williamson added, “I want to thank Dennis for his significant contributions to Everest, and welcome Connie, who is a proven, capable leader, and highly respected by our clients and colleagues. Connie’s underwriting depth and experience gives us a strategic advantage as we continue to invest in one of our most successful and thriving businesses.”
Everest Re Group Publishes 2020 Global Loss Triangles
Everest Re Group, Ltd. (“Everest” or the “Company”) announced that it has published its Global Loss Triangles for the year ended December 31, 2020.
These documents are available on the Company’s investor relations website, under Financials/Annual Disclosures. The link can be found here: Everest 2020 GLT link.
Jim Williamson, Executive Vice President & Group Chief Operating Officer, Assumes Additional Responsibilities as Head of the Everest Reinsurance Division
Everest Re Group, Ltd. (“Everest”) announced that Jim Williamson, Executive Vice President and Group Chief Operating Officer will assume additional responsibilities as the Head of the Everest Reinsurance Division effective immediately.
Mr. Williamson succeeds John Doucette, who is leaving the Company to pursue other opportunities.
The appointment of Mr. Williamson to lead Everest’s Reinsurance Division furthers the Company’s focus on profitably growing a balanced and diversified reinsurance and insurance portfolio, underpinned by relentless execution, to maximize shareholder returns and deliver superior earnings and book value per share growth over time.
Juan C. Andrade, Everest President and Chief Executive Officer commented:
“I am excited to have Jim take on the leadership of Everest Reinsurance. He is an experienced and talented executive with a wealth of industry knowledge, and a track record of driving results. This change will enable us to enhance our already strong underwriting and operational discipline.”
“On behalf of the executive management team, I want to thank John for his dedication and many contributions to the organization. Under his leadership, Everest has strengthened its position as a resilient and innovative reinsurer. I wish him well in his future endeavors.”
Mr. Williamson commented, “Everest’s Reinsurance business is world class, and I am energized by the opportunity to lead such an accomplished team. We have exceptional talent around the world, deep partnerships with our brokers and cedants, and the financial resources to continue to execute our global growth strategy.”
About Jim Williamson
Jim Williamson joined Everest in 2020 as the Group Chief Operating Officer. Mr. Williamson began his insurance career as a casualty underwriter at The Hartford. Over the years, at The Hartford, Chubb, and now Everest, he has worked in all aspects of the P&C commercial and consumer lines industry both in the U.S. and internationally running large and successful businesses. He has also had functional responsibilities for actuarial, technology, and claims organizations during his career.
Mr. Williamson holds an MBA from The Wharton School at the University of Pennsylvania, and a B.S. from Bryant College.
Everest Re Group Appoints Anne Rocco as Group Chief Transformation and Shared Services Leader
Everest Re Group, Ltd. (“Everest”) announced the appointment of Anne Rocco as Senior Vice President and Group Chief Transformation and Shared Services Leader. She will serve on the Everest Executive Leadership Committee and report directly to President and Chief Executive Officer Juan C. Andrade.
This leadership appointment supports the company’s strategy of profitably growing a balanced and diversified insurance and reinsurance portfolio, underpinned by the relentless execution of our strategies to maximize shareholder returns and deliver superior earnings and book value per share growth over time.
Anne joins Everest from Chubb, where she most recently served as Executive Vice President and Head of International Operations and Technology for Chubb Overseas General. Anne began her career with Chubb 28 years ago and has held significant leadership roles in their North American and International businesses, leading global teams to reengineer processes, improve operational performance and transform businesses in dynamic and rapidly changing environments. Ms Rocco has extensive experience delivering complex, large scale strategic and transformational global initiatives. She is widely recognized for her passion and success in driving results, improving customer experience, and enhancing operational performance.
Juan C. Andrade, President and Chief Executive Officer commented, “Anne is an exceptionally talented executive who brings a wealth of experience, operational acumen, and global industry knowledge to Everest. She will be instrumental in driving our strategy to transform our Company and support our growth ambitions for the future. I am excited to work with her and the rest of our executive management team to build upon our strong foundation and deliver our strategic objectives in the next chapter of Everest’s journey.”
Ms. Rocco stated, “I am delighted to be joining Everest and its ambitious leadership team. I am energized to work across the Group to accelerate the transformational initiatives underway, ensuring we are well positioned to effectively support our growth goals across the globe.”
Everest Re Group Reports Fourth Quarter and Full Year 2020 Results: Full Year Net Income of $514 Million
15% Growth in Full Year Gross Written Premium with Underlying Profit Improvement
11.4% Year on Year Growth in Book Value Per Share Inclusive of Dividends
Everest Re Group, Ltd. (“Everest” or the “Company”) reported its 2020 fourth quarter and year end results.
Fourth Quarter 2020 Highlights
Net income of $64 million equal to $1.59 per share
Net operating loss of $(44) million, $(1.12) per common share
Gross written premium growth of 13%
Attritional combined ratio of 86.3%, a 4 point improvement year over year
Pre-tax net catastrophe losses of $70 million, Covid-19 Pandemic (“Pandemic”) losses of $76 million, and a prior year reserve strengthening of $400 million
Full Year 2020 Highlights
Net income of $514 million, $12.78 per diluted common share
Net operating income of $300 million, $7.46 per diluted common share
Growth in diluted book value per share of 11.4% inclusive of dividends
Gross written premium growth of 15%
Attritional combined ratio of 87.5%, ~ 1 point improvement year over year
2020 cash flow from operations of $2.9 billion
View Full Release
Everest Provides Preliminary Information on Fourth Quarter and Full Year 2020 Results
Everest Re Group, Ltd. (“Everest” or the “Company”) announced preliminary financial results in advance of its full quarterly and full year earnings to be released on February 8, 2021.
Inclusive of the items noted below, Everest expects to report full year 2020 net income of $475-$525 million and operating income of $275-$325 million.
Everest is estimating pre-tax net catastrophe losses for the fourth quarter 2020 of $70 million, net of reinsurance and reinstatement premiums. The estimate includes the impact of Hurricanes Delta, Zeta, Eta, Iota, and the Queensland Australia Hailstorm. These catastrophe losses include $60 million in the Company’s Reinsurance segment and $10 million in the Insurance segment.
Everest is also estimating pre-tax net Covid-19 Pandemic (“Pandemic”) losses for the fourth quarter 2020 of $76 million primarily for third-party lines. This amount includes $56 million in the Company’s Reinsurance segment and $20 million in the Insurance segment and is in addition to the $435 million of Pandemic losses estimated in the first nine months of 2020. For full year 2020, the total Pandemic loss provision is $511 million — over 80% is IBNR.
After a comprehensive annual review of all reinsurance and insurance reserves, Everest is increasing prior year loss reserves by $400 million. The amount is equal to 3.0% of net loss reserves as of September 30, 2020. This reserve strengthening is all in the Company’s Reinsurance segment and primarily in long-tail classes for the 2015-2018 accident years notably general liability, professional lines, and auto liability. The reserve charge also includes actions on non-CAT property lines, primarily for the 2017-2019 accident years and driven by a few large losses to aggregate programs.
Everest Re Group President & CEO Juan C. Andrade commented:
“We remain focused on the relentless execution of our strategies to create a diversified portfolio that achieves superior risk adjusted returns and value to our shareholders and customers. The decisive reserving actions we are announcing today recognize the social inflation trends affecting the overall U.S. Casualty market and enhance our already strong balance sheet. We have proactively acted on the affected portfolios and we have confidence in our in-force book. We are bullish about our future and the earnings generating power of our franchise.
“Everest continues to benefit from excellent financial strength and strong enterprise risk management. The fundamentals of our business are strong. Our Company is well positioned to succeed in any market conditions, as evidenced by our growth and our improved underlying results despite the many global challenges in 2020. Our strong management team, employees, global platform, and excellent capabilities continue to provide superior solutions to our business partners and customers.”
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.
Everest Re Group Announces Estimated First Quarter 2020 Impact From The Covid-19 Pandemic
Everest Re Group, Ltd. (“Everest” or the “Company”) announced today the estimated impact from the Covid-19 pandemic (“Pandemic”) on its first quarter 2020 results. Everest is providing details in advance of its full quarterly earnings to be released on May 6, 2020.
“As the situation surrounding the Covid-19 pandemic continues to evolve, our thoughts are with everyone who has been impacted around the globe. Everest remains committed to supporting our clients, communities, and trading partners. These are unprecedented times, and our first priority is the safety of our employees, business partners, other stakeholders and their families. Our entire organization has been working remotely, continuing to serve our customers with the same high level of service that they have come to expect. Our capital position remains a source of strength, with high quality invested assets, significant liquidity, low financial leverage, and a low operating expense ratio. Our diversified global platform with its broad mix of products, distribution and geography is resilient,” said Everest President & CEO Juan C. Andrade.
For the first quarter of 2020, Everest expects to report the following:
1. A combined ratio below 100% for the consolidated reinsurance and insurance operations.
Included in the above combined ratio is an incurred but not reported (“IBNR”) provision for an estimate of $150 million in pre-tax net first party losses for expected claims related to the Pandemic. The majority of the losses are expected to come from our Reinsurance Segment. This estimate is consistent with our philosophy of recognizing and reacting to expected losses on a timely basis. As a result, this IBNR estimate is being recognized in the current quarter. Pandemic losses will be tracked separately and as an ongoing event.
2. Net investment income of $148 million for the first quarter of 2020.
Everest notes that net investment income from limited partnerships is generally subject to a reporting lag averaging one quarter. As such, the results from these investments during the first quarter of 2020 will be reported in the second quarter 2020 net investment income. Our balance sheet, including our investment portfolio, is well-diversified, with a focus on high quality fixed income investments. Since the start of the economic crisis, Everest has further repositioned our portfolio, moving up in fixed income credit quality and reducing equity exposure.
Risks and Uncertainties
There are significant uncertainties surrounding the ultimate number of claims and scope of loss resulting from the Pandemic. The Company’s estimates are based on best available information obtained to date from a review of relevant in-force contracts with potential exposure and estimates of reinsurance recoverables, and also from the Company’s clients and brokers. Given the uncertain and evolving nature of the Pandemic, actual ultimate losses from these events may vary materially from these current estimates. Everest anticipates this Pandemic could have a meaningful impact on revenue, as well as net and operating income in future quarters as a result of reinsurance and insurance claims due to the Pandemic and resulting macro-economic market conditions.
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 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.