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Everest Group, Ltd. is a Bermuda-based reinsurance and insurance organization with a global presence, serving clients across more than 100 countries . The company operates through two main segments: Reinsurance and Insurance, with the Reinsurance segment being the larger contributor to the company's gross written premiums . Everest Group offers a wide range of reinsurance and insurance products, including treaty and facultative reinsurance, as well as accident and health, specialty casualty, and professional liability insurance . The company's strategic focus is on maintaining a diversified portfolio and leveraging its financial strength to sustain its leadership position in targeted markets .
- Reinsurance - Provides treaty and facultative reinsurance on a pro rata or excess of loss basis, covering lines such as property, catastrophe, casualty, marine, aviation, engineering, professional lines, credit and surety, motor, agriculture/crop, and political violence.
- Insurance - Offers a broad suite of products, including accident and health, specialty casualty, other specialty, professional liability, property/short-tail, and workers' compensation, with specialty casualty being the largest contributor.
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You have delayed your target combined ratio of 90%-92% for the Insurance segment to 2025; what specific challenges have caused this postponement, and what measures are you implementing to ensure you meet this goal on the new timeline? ,
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After shedding over $300 million in casualty pro rata renewals due to competitive market conditions and concerns about social inflation, how do you plan to compensate for this reduction in premiums, and what impact do you expect on your overall growth and profitability? , , ,
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As you expand into new international markets where established local carriers dominate, how are you addressing the potential risks of adverse selection, and what strategies are in place to ensure profitable growth in these regions? ,
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Considering the higher catastrophe losses this quarter compared to last year's period, what steps are you taking to strengthen your risk management practices to mitigate the financial impact of such events in the future? ,
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Despite achieving rate increases exceeding loss trends in casualty lines, the Insurance segment's overall growth remains modest at 6%; what factors are limiting growth in this segment, and how do you plan to accelerate it while maintaining underwriting discipline? ,
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Marsh & McLennan | Reinsurance broker intermediary | Reinsurance | 20.4% of gross written premiums in 2023 |
Aon | Reinsurance broker intermediary | Reinsurance | 16.1% of gross written premiums in 2023 |
Recent developments and announcements about EG.
Financial Reporting
- Net Income: Expected to range between $1.3 billion and $1.4 billion.
- Non-GAAP Net Operating Income: Estimated between $1.2 billion and $1.3 billion.
- Total Reserve Strengthening: $1.7 billion for the full year and fourth quarter 2024, driven by:
- Prior-Year Loss Reserves: Unfavorable development of $1.5 billion.
- Current Accident Year Strengthening: $229 million in U.S. casualty lines.
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Reinsurance Segment:
- Strengthened U.S. casualty reserves by $684 million.
- Favorable development in property and mortgage lines offset the reserve strengthening.
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Insurance Segment:
- Strengthened U.S. casualty reserves by $1.1 billion.
- Increased current accident year losses by $206 million, totaling $1.3 billion.
- Reserve strengthening attributed to social inflation and portfolio concentrations in certain U.S. casualty lines.
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New 'Other' Segment:
- Includes legacy asbestos and environmental exposures, discontinued insurance programs, and the recently sold sports and leisure business.
- Unfavorable development of $425 million.
- New Target Objective: Delivering a mid-teens total shareholder return over the cycle.
- Transformation Efforts:
- Aggressive underwriting actions in U.S. casualty lines.
- Exiting underperforming portfolios and enhancing claims capabilities.
- Strengthening talent and investing in the platform.
Earnings Report
Everest Group, Ltd. Preliminary Earnings Announcement
On January 27, 2025, Everest Group, Ltd. (NYSE: EG) released preliminary financial results for the fourth quarter and full-year 2024. The full earnings report is scheduled for release on February 3, 2025. Below are the key highlights from the announcement:
Financial Performance
Reserve Strengthening
Segment-Specific Details
Strategic Initiatives
Conference Call
Everest will host a conference call on January 28, 2025, at 8:30 AM ET to discuss these preliminary results. Registration details are available on their website.
Outlook
CEO Jim Williamson emphasized that these actions position Everest for stronger financial performance, stating, "Our decisive actions this quarter follow a comprehensive reserve review... We believe these actions strengthen our balance sheet and put Everest on a clear trajectory towards generating attractive returns throughout the cycle".
For further details, the full earnings report will be available on February 3, 2025.
Sources: , , ,
Auditor Changes
Everest Re Group, Ltd. Auditor Change
On June 2, 2023, Everest Re Group, Ltd. announced a change in its independent registered public accounting firm. The company dismissed PricewaterhouseCoopers LLP (PwC) and appointed KPMG LLP as the new auditor for the fiscal year ending December 31, 2024. PwC will continue to serve as the auditor for the fiscal year ending December 31, 2023. The change followed a competitive selection process and is subject to shareholder approval at the 2024 annual general meeting .
Corporate Leadership
CEO Change
Jim Williamson has been appointed as the permanent CEO of Everest Group, effective January 22, 2025. He was previously the Acting CEO and has held senior roles within the company since 2020, including EVP and Group COO. The Board of Directors expressed confidence in his leadership to guide the company forward.
Board Change
Everest Group, Ltd. has announced the appointment of Jim Williamson as President and Chief Executive Officer, effective immediately. This decision was made by the company's Board of Directors.
Leadership Change
Jim Williamson has been appointed as the Acting Chief Executive Officer (CEO) of Everest Group, Ltd. ("Everest") and has also joined the Board of Directors. This change was disclosed in a filing on January 8, 2025. Williamson will receive an additional stipend of $25,000 per month during his tenure as Acting CEO, effective January 13, 2025.
Leadership Change
Who is leaving? Juan C. Andrade, President and CEO of Everest Group, is stepping down to pursue a new role as CEO of a financial services firm.
Why? Andrade is leaving to take on a new opportunity in the financial services sector.
Who is stepping up? Jim Williamson, previously Executive Vice President and COO, has been appointed Acting CEO and a member of the Board of Directors, effective January 8, 2025.
CEO Change
Juan C. Andrade, the President and CEO of Everest Group, Ltd., has resigned to pursue another opportunity. Jim Williamson has been appointed as the Acting CEO effective immediately as of January 5, 2025. Williamson, who joined Everest in 2020, has extensive experience in the insurance industry and has held various senior positions at Everest and other companies.
Board Change
Key Update: On January 8, 2025, Jim Williamson was appointed to the Board of Directors of Everest Group, Ltd. (EG) as part of his promotion to Acting Chief Executive Officer. He replaces Juan C. Andrade, who resigned to pursue another opportunity.
Board Change
Mike Karmilowicz has resigned from his role as Chairman of Everest Global Insurance, effective December 2, 2024 .