Everest Group, Ltd. is a Bermuda-based reinsurance and insurance organization with a global presence, serving clients across more than 100 countries **[0001095073-24-000020_everestgroupltdannualrep.htm:20]** **[0001095073-24-000009_eg-20231231.htm:5]**. 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 **[0001095073-24-000020_everestgroupltdannualrep.htm:20]** **[0001095073-24-000009_eg-20231231.htm:5]**. 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 **[0001095073-24-000009_eg-20231231.htm:16]** **[0001095073-24-000020_everestgroupltdannualrep.htm:35]** **[0001095073-24-000009_eg-20231231.htm:17]**. The company's strategic focus is on maintaining a diversified portfolio and leveraging its financial strength to sustain its leadership position in targeted markets **[0001095073-24-000009_eg-20231231.htm:11]** **[0001095073-24-000020_everestgroupltdannualrep.htm:28]**.

1. **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.
2. **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.

0c4c925fbe9c83ab36f2fc8e06c04b4d534d3933df637abbdba884c66873dcea

Cash and Cash Equivalents [USD, Thousands]

Accounts Receivable [USD, Thousands]

Accrued Expenses [USD, Thousands]

Long-term Debt [USD, Thousands]

Shareholders' Equity [USD, Thousands]

Retained Earnings [USD, Thousands]

Common Stock [USD, Thousands]

Additional Paid-in Capital [USD, Thousands]

0391931372782954df9111144165446e54d969c8bf89a9a4538d73abfd32da70

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

eedd0f6bbd869ed09b8ec3473dc577618b2e0379c3a9ff6855985579ba9c8e17

| Metric [Unit: $ Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Reinsurance Segment**  |         |         |         |         |         |         |         |         |
| Gross Written Premiums   | 2,380  **[0001095073-23-000005_ex991.htm:1]**  | 2,637  **[0001095073-23-000020_ex991.htm:2]**  | 2,800  **[0001095073-23-000034_earningrelease-exx991.htm:0]** **[0001095073-23-000034_earningrelease-exx991.htm:2]**  | 3,219  **[0001095073-23-000048_eg-20230930.htm:28]**  | 2,900  **[0001095073-24-000005_earningsrelease-exx9914q20.htm:3]**  | 3,175  **[0001095073-24-000027_eg-20240331.htm:27]**  | 3,200  **[0001095073-24-000032_earningsrelease-exx991q220.htm:2]**  | 2,970  **[0001095073-24-000046_eg-20240930.htm:29]**  |
| Net Written Premiums     | N/A     | 2,454  **[0001095073-23-000020_ex991.htm:2]**  | N/A     | 3,008  **[0001095073-23-000048_eg-20230930.htm:28]**  | N/A     | 2,942  **[0001095073-24-000027_eg-20240331.htm:27]**  | N/A     | N/A     |
| Premiums Earned          | N/A     | 2,242  **[0001095073-23-000024_everestre-20230331.htm:30]**  | N/A     | 2,612  **[0001095073-23-000048_eg-20230930.htm:28]**  | N/A     | 2,728  **[0001095073-24-000027_eg-20240331.htm:27]**  | N/A     | 2,970  **[0001095073-24-000046_eg-20240930.htm:29]**  |
| **Insurance Segment**    |         |         |         |         |         |         |         |         |
| Gross Written Premiums   | 1,300  **[0001095073-23-000005_ex991.htm:2]**  | 1,106  **[0001095073-23-000020_ex991.htm:2]**  | 1,400  **[EG_3255959_2]** **[0001095073-23-000034_earningrelease-exx991.htm:0]**  | 1,172  **[0001095073-23-000048_eg-20230930.htm:28]**  | 1,400  **[EG_3372584_6]**  | 1,236  **[0001095073-24-000027_eg-20240331.htm:27]**  | 1,500  **[0001095073-24-000032_earningsrelease-exx991q220.htm:3]**  | 948  **[0001095073-24-000046_eg-20240930.htm:29]**  |
| Net Written Premiums     | N/A     | 875  **[0001095073-23-000020_ex991.htm:2]**  | N/A     | 858  **[0001095073-23-000048_eg-20230930.htm:28]**  | N/A     | 958  **[0001095073-24-000027_eg-20240331.htm:27]**  | N/A     | N/A     |
| Premiums Earned          | N/A     | 858  **[0001095073-23-000024_everestre-20230331.htm:30]**  | N/A     | 901  **[0001095073-23-000048_eg-20230930.htm:28]**  | N/A     | 923  **[0001095073-24-000027_eg-20240331.htm:27]**  | N/A     | 948  **[0001095073-24-000046_eg-20240930.htm:29]**  |

8c978947b2c674ec9bdc42cac29398b81ebabd6579930907683a183e0a2c3502

1. 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?  **[EG_3395897_3]** ,  **[EG_3395897_2]** 

2. 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?  **[EG_3395897_16]** ,  **[EG_3395897_20]** ,  **[EG_3395897_18]** ,  **[EG_3395897_23]** 

3. 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?  **[EG_3395897_18]** ,  **[EG_3395897_23]** 

4. 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?  **[EG_3395897_2]** ,  **[EG_3395897_5]** 

5. 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?  **[EG_3395897_3]** ,  **[EG_3395897_14]** 

bd77a1822554fe6ccdd20642fa995afeaabe57f486bb19f97b309700004ccdd6

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

Selling, General, and Administrative Expenses (SG&A) [USD, Millions]

Research and Development (R&D) [USD, Millions]

Depreciation and Amortization (D&A) [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

Earnings Per Share (EPS) - Basic [USD]

Earnings Per Share (EPS) - Diluted [USD]

1bec4e8d54eba33010a973134df3a9c835cb8c458dcb791bf63b5509f40f1398

Attritional Losses ($ million)

Catastrophe Losses ($ million)

Ceded Written Premiums ($ million)

Ceded Earned Premiums ($ million)

Ceded Losses and LAE ($ million)

1716f528fd47c42e9c0a55001dd33db2d6162ddd3f372d9ac593d7dbea837c9b

| Program Details          | Program 1          |
|--------------------------|--------------------|
| Approval Date            | **May 22, 2020**  **[0001095073-24-000046_eg-20240930.htm:67]**  |
| End Date/Duration        | **N/A**            |
| Total Additional Amount  | **32 million shares**  **[0001095073-24-000046_eg-20240930.htm:67]**  |
| Remaining Authorization  | **692,439 shares**  **[0001095073-24-000046_eg-20240930.htm:67]**  |
| Details                  | The program allows the purchase of shares in open market or privately negotiated transactions to adjust capital position and enhance shareholder returns.  **[0001095073-23-000007_re-20221231.htm:65]** **[0001095073-24-000009_eg-20231231.htm:63]** **[0001095073-24-000046_eg-20240930.htm:67]** **[0001095073-24-000027_eg-20240331.htm:59]** **[0001095073-24-000037_eg-20240630.htm:68]**  |

6c389dc7826c3d0cf4e80dffd14c20f600fb15b4e7aaad54f8c44c3d22f070ca

Reinsurance

- Premiums Earned

- Net Investment Income

Insurance

Net Investment Income

Net Gains (Losses)

Other Income (Expense)

U.S. Reinsurance

International

Bermuda

Mt. Logan Re

Total Revenue

056e869a584a12d81650372f099265c60c300eb42ff5793911495a67adcc6ed1

**Quarterly guidance for H2 2024:**
- **Insurance Segment Combined Ratio**: 93% to 94%  **[EG_3405028_8]**  (no change from prior guidance of 93% to 94%  **[EG_3395897_13]** )

**Quarterly guidance for H2 2025:**
- **Insurance Segment Combined Ratio**: closer to 92%  **[EG_3405028_21]**  (raised from 90% to 92%  **[EG_3395897_13]** )

- **Commission Ratio**: ~12%  **[EG_3405028_9]**  (no prior guidance)
- **General Expense Ratio**: expected to decline over time  **[EG_3405028_9]**  (no prior guidance)

9ef7bf11ac020c18d6830e86540d59c607307706977932e19bc4ca9fd35734c9

United States

Europe

All other regions

Domestic

Total Gross Written Premiums

- U.S. Reinsurance

- Insurance

United Kingdom

b5bea4d0f405fb5497d39594804eb46b269d6856935a5071cf8a83b00cdf17ab

### Q2 2024 Earnings Call
   - **Issued Period**: Q2 2024
   - **Guided Period**: Remainder of 2024 and into 2025
   - **Guidance**:
     - **Insurance Combined Ratio**: Expected to be in the range of **93% to 94%** for the remainder of 2024. Aim to achieve a combined ratio of **90% to 92%** in the back half of 2025  **[EG_3395897_13]** .
     - **Total Shareholder Return (TSR)**: Focused on achieving industry-leading financial returns with a target TSR objective for 2024, 2025, and 2026  **[EG_3395897_1]** .
     - **Expense Ratio**: Expected to trend downward in 2025 and approach a more normalized level of **15%** over time  **[EG_3395897_6]** .
     - **Insurance Growth**: Plan to optimize the mix of business, focusing on short-tail and specialty lines, with a **93% to 94%** insurance combined ratio quarterly run rate for the rest of 2024  **[EG_3395897_13]** .
     - **Investment Income**: Expect continued strong performance from the investment portfolio, with a reinvestment rate well above 5%  **[EG_3395897_6]** .

### Q1 2024 Earnings Call
   - **Issued Period**: Q1 2024
   - **Guided Period**: FY 2024
   - **Guidance**:
     - **Combined Ratio for the Insurance Segment**: Guided for a reported combined ratio of **90% to 92%** for the full year 2024  **[EG_3381636_20]** .
     - **Total Shareholder Return (TSR)**: Confidence in generating a TSR in excess of **17%** on an ongoing basis as part of their 3-year plan  **[EG_3381636_23]** .

### Q4 2023 Earnings Call
   - **Issued Period**: Q4 2023
   - **Guided Period**: FY 2024 to FY 2026
   - **Guidance**:
     - **Operating Return on Equity (ROE)**: Achieved an operating ROE of **23.1%** for 2023, with confidence in maintaining strong returns  **[EG_3372584_5]** .
     - **Total Shareholder Return (TSR)**: Annualized TSR was **26.5%** for 2023, aiming to continue delivering strong shareholder returns  **[EG_3372584_5]** .
     - **Market Conditions and Growth**: Expect strong market conditions with excellent growth opportunities in Reinsurance and Insurance segments  **[EG_3372584_1]** **[EG_3372584_5]** .
     - **Underwriting and Investment Strategy**: Plan to leverage market position to grow in attractive lines of business and enhance the investment portfolio  **[EG_3372584_5]** **[EG_3372584_8]** .
     - **Reserve Management**: Actions taken to strengthen reserve position  **[EG_3372584_8]** **[EG_3372584_7]** .
     - **Portfolio Management**: Focus on maintaining a high-quality, diversified book of business  **[EG_3372584_7]** .

### Q3 2024 Earnings Call
   - **Issued Period**: Q3 2024
   - **Guided Period**: N/A
   - **Guidance**: The documents do not contain information from the Q3 2024 earnings call for Everest Group Limited, so specific guidance metrics are unavailable.

418e9f60eddb977a578203fd838bb020509d6e81bad07c97300ac31a6fbdb156

| Name                | Position                                           | Start Date          | Short Bio                                                                                                                                                                                                 |
|---------------------|----------------------------------------------------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Juan C. Andrade     | President & CEO                                    | February 26, 2020   | Juan C. Andrade has nearly **30 years of experience** in the insurance industry. He joined Everest from Chubb Limited and has served as a director since **February 26, 2020**  **[0001095073-24-000018_eg-20240411.htm:8]** **[0001095073-24-000018_eg-20240411.htm:9]** **[0001095073-23-000012_re-20221231.htm:20]** .                                                     |
| Mark Kociancic      | Executive Vice President & Chief Financial Officer | October 12, 2020    | Mark Kociancic joined Everest from SCOR SE, where he was Group CFO. He holds CPA and CFA designations  **[0001095073-24-000018_eg-20240411.htm:37]** .                                                                                                                                      |
| Jim Williamson      | Executive Vice President & Chief Operating Officer | 2020                | Jim Williamson joined Everest in **2020** and expanded his role to lead global reinsurance and insurance businesses by **March 2024**  **[0001095073-24-000018_eg-20240411.htm:37]** **[0001095073-23-000012_re-20221231.htm:25]** .                                                                                                   |
| Mike Karmilowicz    | Executive Vice President & Chairman of Global Insurance | March 25, 2024      | Mike Karmilowicz joined Everest in **July 2015** and became Chairman of Everest Global Insurance in **March 2024**. He has over 30 years of industry experience  **[0001095073-24-000018_eg-20240411.htm:38]** **[0001095073-24-000018_eg-20240411.htm:39]** **[0001095073-24-000018_eg-20240411.htm:62]** .                                                                      |
| Gail Van Beveren    | Executive Vice President & Chief Human Resources Officer | N/A                 | Gail Van Beveren has been with Everest for 37 years, starting as a Business Systems Analyst. She oversees global talent management initiatives and serves as an Executive Sponsor of the Diversity Equity & Inclusion Council  **[0001095073-24-000018_eg-20240411.htm:38]** .               |
| Ricardo Anzaldua    | Executive Vice President & General Counsel         | June 2023           | Ricardo Anzaldua joined Everest in **June 2023**. He has over three decades of legal and corporate governance experience, having held senior roles at Freddie Mac and MetLife  **[0001095073-24-000018_eg-20240411.htm:38]** **[0001095073-24-000009_eg-20231231xexx1045.htm:0]** .                                                           |

4881a6f477880fa3dc30a38a3dccfbd3f1edc477dc0a202452887b217369a13a

| Name                     | Start Date | End Date   | Reason for Change                                                                                     |
|--------------------------|------------|------------|-------------------------------------------------------------------------------------------------------|
| KPMG LLP                 | 2024  **[0001095073-23-000031_everestre-20230602.htm:1]**    | Present    | Current auditor.                                                                                     |
| PricewaterhouseCoopers LLP (PwC) | 1996  **[0001095073-24-000009_eg-20231231.htm:122]**    | 2023  **[0001095073-23-000031_everestre-20230602.htm:1]**    | The change was made following a competitive process conducted by the Audit Committee.  **[0001095073-23-000031_everestre-20230602.htm:1]**             |

aeaa786d5a5a818088fad72888568f3bd10ba476f685b73f894f465205f0ee06

cae6f80b29c54ec06af3940d0b26947b39a2a51f50d6329cbe14851cb02844d2

- **Strong Capital Position and Confidence in 2025 Earnings Growth**: Management affirms that despite taking a reserve hit in 2024, the company's capital position remains **strong**, and they have a **strong earnings engine for 2025**, with confidence in achieving their **mid-teens total shareholder return target**.  **[EG_3413444_12]** ,  **[EG_3413444_21]**
- **Growth in Short-Tail Lines and International Insurance Business Leading to Improved Profitability**: The company is experiencing **terrific results** in their **international insurance business**, which is performing **exceptionally well** with **excellent loss ratios**. They are shifting their portfolio mix towards less concentration in U.S. casualty and more growth in **short-tail lines**, expected to **improve the combined ratio over time**.  **[EG_3413444_14]** ,  **[EG_3413444_21]** ,  **[EG_3413444_5]**
- **Decisive Actions and Significant Rate Increases in U.S. Insurance Casualty Lines**: Management is taking **decisive action** to remediate the U.S. casualty portfolio, implementing a **one-renewal** remediation strategy, and achieving **rate increases well in excess of loss trends**, such as **low 20% increases in commercial auto** and **mid-teens increases in general liability and excess liability**, which is expected to improve profitability.  **[EG_3413444_25]** ,  **[EG_3413444_11]**

32b104b18e326ad4640ae97314e6fb46c73f9af89cdce0eb6333053ee45d82f0

- **Significant reserve strengthening** due to underperforming **U.S. casualty portfolios**, indicating prior under-reserving and potential future earnings impact. The insurance segment is currently running at a **combined ratio of over 100%**.  **[EG_3413444_11]** **[EG_3413444_23]**
- The remediation of the U.S. casualty book is expected to take time, potentially affecting earnings in the near term. The remediation began in 2024 and is **"about halfway done"**, with completion expected in 2025.  **[EG_3413444_13]** **[EG_3413444_8]**
- The company is facing persistent **social inflation and legal system abuse** in U.S. casualty lines, projecting **elevated loss trends** that may pressure profitability.  **[EG_3413444_23]**

f6a3aa3b0f813ef561b47b4b4b4f66694ec4080ab9869ce45779b0182c0d8387

1. **Reserve Strengthening Impact**  
   **Q:** Will reserve strengthening negatively affect future loss ratios?  
   **A:** Yes, after subtracting prior year development, the insurance combined ratio is around **100% or slightly over**.  **[EG_3413444_5]**  The company intends to sustain casualty loss picks at current levels and not take credit for underwriting actions until results flow through reserves.  **[EG_3413444_5]**  They expect growth in short-tail and international businesses to provide a tailwind over time.  **[EG_3413444_5]** 

2. **Remediation of U.S. Casualty**  
   **Q:** How will casualty remediation affect future results?  
   **A:** The remediation of the U.S. casualty book began in **2024** and is expected to be completed in **2025**.  **[EG_3413444_6]**  Non-renewed legacy business with higher loss ratios will run off, improving the go-forward loss ratio.  **[EG_3413444_6]**  Expense ratios may be higher near-term due to premium reductions in U.S. casualty.  **[EG_3413444_6]** 

3. **Risk Margin in Reserves**  
   **Q:** How does the new risk margin compare historically?  
   **A:** Management added a larger risk margin to reserves due to changes in loss emergence and development patterns in U.S. casualty lines.  **[EG_3413444_7]**  This is more pronounced than in prior years, reflecting definitive trends in the loss environment.  **[EG_3413444_7]** 

4. **Confidence in Reserves**  
   **Q:** Are you confident in the reserves for 2018-2019 accident years?  
   **A:** Yes, industry improvements starting in **2018** led to better loss ratios.  **[EG_3413444_15]**  The peak of the soft market was in **2016-2017**.  **[EG_3413444_15]**  Management is confident due to rigorous assessment and added a risk margin.  **[EG_3413444_15]** 

5. **Casualty Pricing vs. Loss Trends**  
   **Q:** Are rate increases keeping up with loss trends?  
   **A:** The company is driving rate changes **well above** the **12%** loss trend.  **[EG_3413444_11]**  In Q3, commercial auto rates increased by **low 20%**, and general liability and excess liability by **mid-teens**.  **[EG_3413444_11]**  They are committed to continuing this trend.  **[EG_3413444_11]** 

6. **Capital Adequacy and Plans**  
   **Q:** How is capital adequacy affected, and what are your plans?  
   **A:** Despite taking a hit, the capital position remains **strong**.  **[EG_3413444_12]**  They are confident in supporting the **2025** operating plan and foresee normal capital management options, strengthening the capital base through retained earnings.  **[EG_3413444_12]** 

7. **Strategy After Remediation**  
   **Q:** What is the insurance strategy after remediation?  
   **A:** The company aims to be the first call for brokers placing large account specialty property casualty solutions globally.  **[EG_3413444_14]**  They are investing in underwriting expertise, product quality, and analytics.  **[EG_3413444_14]**  The strategy is performing well outside U.S. casualty and will continue.  **[EG_3413444_14]** 

8. **Impact of Social Inflation**  
   **Q:** How does social inflation affect your plans?  
   **A:** Social inflation isn't expected to abate but isn't accelerating.  **[EG_3413444_23]**  They've incorporated a conservative **12%** loss trend assumption to account for it.  **[EG_3413444_23]**  They're building a portfolio designed to thrive in this environment.  **[EG_3413444_23]** 

9. **Broker Relationships**  
   **Q:** Will aggressive remediation harm broker relationships?  
   **A:** The company is unwilling to write unprofitable business.  **[EG_3413444_18]**  Brokers understand the need for rate increases, and the company remains a significant market for them.  **[EG_3413444_18]**  While some brokers may be upset, it doesn't affect their commitment to turnaround by **2025**.  **[EG_3413444_18]** 

10. **Dropping Guidance**  
    **Q:** Why move away from providing detailed guidance?  
    **A:** Time spent on detailed forward guidance hasn't contributed to shareholder value.  **[EG_3413444_24]**  Management prefers to focus on candidly discussing business performance and being transparent about what's going well or not.  **[EG_3413444_24]** 

4c9e34e73586b4ef9a180562b5ec6686b18a72517c9902d78f25720b8cef992c

EG Q4’24: Despite a sizable U.S. casualty reserve hit (combined ratio >100%), capital remains strong. Management is hiking rates above 12% loss trends (auto +20%, GL & excess mid-teens) while expanding short-tail/international lines, targeting mid-teens TSR by 2025.

7e17d2a9badd499be485b55d8c6e6d81238e0edd9642ecdc32af9c55212abde2

399c0ffb24384c796c6a9438503da284ad07a749908de8df76b3ed0febf65b0f

**Annual guidance for FY 2025:**
- **Return on equity (ROE)**: mid-teens  **[EG_3413444_5]**  (no prior guidance)  
- **Total shareholder return (TSR)**: mid-teens  **[EG_3413444_21]**  (no prior guidance)  

23a9b216ab4da1f36a104bed1511354b7cf11c71e0d120331002535149411d5c

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

23eaa58165626ac0a653e7b9062bca463ac38ccc487d3cd19aec22d2e66b7933

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fff25ba1a376de1870ada50e34fef7c2076e0fa768a0ca15831f75ded3b32ff9

| Year   | Amount Due (Millions) | Debt Type                     | Interest Rate (%) | % of Total Debt                     |
|--------|------------------------|-------------------------------|-------------------|--------------------------------------|
| 2024   | 819                   | Federal Home Loan Bank (FHLB) | N/A               | 24.2% = (819 / 3,387) * 100 **[0001095073-24-000046_eg-20240930.htm:5]** |
| 2024   | 164                   | Bermuda Re Barclays LOC       | N/A               | 4.8% = (164 / 3,387) * 100 **[0001095073-24-000046_eg-20240930.htm:32]**  |
| 2024   | 300                   | Nordea Bank LOC               | N/A               | 8.9% = (300 / 3,387) * 100 **[0001095073-24-000046_eg-20240930.htm:32]**  |
| 2037   | 218                   | Subordinated Notes            | 7.76              | 6.4% = (218 / 3,387) * 100 **[0001095073-24-000046_eg-20240930.htm:33]**  |
| 2067   | 218                   | Subordinated Notes            | 7.76              | 6.4% = (218 / 3,387) * 100 **[0001095073-24-000046_eg-20240930.htm:33]**  |
| N/A    | 2,350                 | Senior Notes                  | 3.125-4.868       | 69.4% = (2,350 / 3,387) * 100 **[0001095073-24-000046_eg-20240930.htm:32]** **[0001095073-24-000046_eg-20240930.htm:33]** |

0dfa4d18fa50b68fe203e6f61dfc688c6f901effc8e7d60571609fa1855a2318

8b5f04c93efb1674cc066392535f293c6c3b4ae6cfaed62af0339017396c905f

- **Everest is achieving significant rate increases in key casualty lines, with rate growth averaging mid-teens in commercial auto liability, general liability, and excess casualty lines**, outpacing loss trends and supporting profitability.  **[EG_3381636_9]**
- **Favorable market conditions and disciplined trading environment are expected to continue, allowing Everest to capitalize on attractive risk-adjusted returns through upcoming renewals and into 2025.**  **[EG_3381636_7]**
- **Everest initiated share buybacks in the first quarter, demonstrating a strong capital position enabling both organic growth and shareholder returns.**  **[EG_3381636_15]**

adeec68ae036c19d14852584b4e0e4d84778b6aacef8677f5bca9a41dee267bc

- **Strong Capital Deployment and Growth Opportunities:** $EG is fully committed to deploying the capital raised earlier this year by the January 1 renewals, with significant growth expected in property catastrophe reinsurance due to strong demand and favorable market conditions.  **[EG_3362306_9]**
- **Robust Risk Management Amidst Growth:** Despite substantial growth in both reinsurance and insurance operations, $EG maintains a very robust risk management process, ensuring that they manage risk aggregation effectively and focus on achieving better risk-adjusted returns without breaching their risk tolerances.  **[EG_3362306_18]**
- **Positive Outlook on Alternative Capital Platform (Mt. Logan):** Mt. Logan, $EG's alternative capital vehicle, has had a solid year, raising over **$250 million**, bringing assets under management to just under **$1.1 billion**, indicating strong investor demand and positioning the company for further successes in 2024.  **[EG_3362306_22]**

f60b42810cf6165b6616383d86a0ef8d79d9a46d18e46742502232792aabf610

1. **Insurance Combined Ratio Delay**  
   **Q:** Is the combined ratio target delayed to 2025?  
   **A:** Management confirmed that the 90% to 92% combined ratio target in the Insurance segment is now expected in the back half of **2025**, with gradual improvement over the coming quarters. The delay is due to the pace of shifting the business mix towards short-tail lines and scaling up international operations.  **[EG_3395897_8]** **[EG_3395897_13]** **[EG_3395897_14]** 

2. **Liability Reserves Adequacy**  
   **Q:** How are liability reserves for 2020-2023?  
   **A:** The company reviews reserves quarterly and maintains prudent loss picks, particularly for U.S. casualty lines experiencing high single-digit loss trends due to social inflation. Management feels comfortable with current reserves, noting no material changes in the first half of the year.  **[EG_3395897_10]** 

3. **Business Mix Impact on Ratios**  
   **Q:** Is mix shift affecting loss and expense ratios?  
   **A:** The shift towards short-tail and specialty lines—with first-party business growing over **30%** and specialty over **25%**—is expected to lower both the loss and expense ratios over time as earned premium catches up, especially from international operations.  **[EG_3395897_8]** **[EG_3395897_15]** 

4. **International Expansion Strategy**  
   **Q:** How is international growth progressing?  
   **A:** International business is growing strongly with loss ratios in the **50s**, benefiting from lower social inflation compared to the U.S. The company focuses on upper middle market and large accounts, avoiding adverse selection by hiring top local talent and targeting underserved segments.  **[EG_3395897_11]** **[EG_3395897_15]** **[EG_3395897_17]** 

5. **Property CAT Reinsurance Growth**  
   **Q:** Why is property CAT reinsurance growing?  
   **A:** The company achieved a lead market position in a hard market, with property CAT XOL reinsurance premiums growing **30%** year-over-year. By being constructive and providing capacity when others pulled back, they secured favorable terms, strong pricing, and benefited from clients seeking stable partners.  **[EG_3395897_21]** **[EG_3395897_22]** 

6. **Casualty Reinsurance Strategy**  
   **Q:** Why shed $300 million in casualty renewals?  
   **A:** Due to competitive market conditions and inadequate ceding commissions in casualty pro rata reinsurance, the company reduced exposure by over **$300 million** in the first half of the year, focusing on more profitable areas and maintaining disciplined underwriting.  **[EG_3395897_15]** **[EG_3395897_23]** 

7. **Rate Increases vs Loss Trends**  
   **Q:** Are rates keeping up with loss costs?  
   **A:** Excluding workers' comp and financial lines, rates increased **10%**, outpacing high single-digit loss trends. Including all lines, rates are up **6%-7%**, consistent with past quarters, ensuring rate adequacy amid rising loss costs.  **[EG_3395897_13]** 

8. **Attritional Loss Ratio Improvement**  
   **Q:** What's driving loss ratio improvement?  
   **A:** The **70 basis points** year-over-year improvement in the attritional loss ratio is primarily due to the shift in business mix towards short-tail lines and increased international premium, rather than changes in loss picks.  **[EG_3395897_19]** 

9. **Timing of Combined Ratio Improvement**  
   **Q:** When will the combined ratio improve?  
   **A:** The Insurance segment is expected to maintain a combined ratio of **93%-94%** for the remainder of the year, with gradual improvement leading to the **90%-92%** target in the second half of 2025.  **[EG_3395897_13]** **[EG_3395897_14]** 

10. **Capital Exposure to Catastrophe Risks**  
    **Q:** Has CAT risk appetite changed?  
    **A:** Despite growth in property exposures, the company's CAT risk appetite remains unchanged, staying within their stated risk limits. They are carefully managing exposures, focusing on non-peak zones and thoughtful attachment points to avoid attritional CAT losses.  **[EG_3395897_11]** 

c8f0f54961b41d751970dd82576a6ec40e0377ffb0658ce5f137496c76d7d5a7

- **Increased exposure to property catastrophe risks**: Everest is shifting its portfolio towards short-tailed businesses, including more CAT property exposures, which could heighten the company's risk profile and potentially lead to significant losses in the event of major catastrophes.  **[EG_3395897_22]** **[EG_3395897_11]**
- **Rapid international expansion may expose the company to execution risks and adverse selection**: Everest is entering new markets internationally, including Italy, and there are concerns about adverse selection as they compete with entrenched legacy carriers, which could lead to higher than expected losses.  **[EG_3395897_24]** **[EG_3395897_18]**
- **Reduction in casualty premiums may impact diversification and future growth**: The company is shedding $300 million of casualty business in the reinsurance segment, which might suggest challenges in this area and could impact their diversification and future profitability.  **[EG_3395897_23]**

3d5916d1e93076a183cdfbf693a3c60d994d3d9e6020e9479f874ce84af9c28f

- **Everest is achieving strong growth and profitability in property catastrophe reinsurance**, becoming a preferred lead market, securing preferential terms, and growing their property book by over **25%** at the June 1 renewal  **[EG_3395897_22]** ,  **[EG_3395897_11]** .
- **Strategic international expansion** into markets with lower social inflation risk is allowing Everest to **target upper middle market and large account business**, focusing on lines with better loss ratios and less competition  **[EG_3395897_18]** ,  **[EG_3395897_16]** .
- **Disciplined underwriting and rate increases ahead of loss trends** in casualty lines, with rate increases in commercial auto liability, general liability, and excess casualty averaging the **mid- to high-teens**, and an overall rate increase of **over 10%**, excluding workers' compensation and financial lines  **[EG_3395897_11]** ,  **[EG_3395897_14]** .

d181b56c757183cb0b776acddd6f17b00b5b8210afa0783bbcc6cb2978e1e90c

1. **Midyear Renewals Outlook**  
   **Q:** Is property reinsurance pricing peaking at midyear renewals?  
   **A:** The company had terrific renewals at 1/1 and 4/1, with about **70%** of the book renewed at excellent risk-adjusted returns.  **[EG_3381636_7]**  While some pricing moderation is expected, attachment points and terms and conditions are holding.  **[EG_3381636_7]**  Competitors remain disciplined, and they see strong increasing demand from top clients.  **[EG_3381636_7]**  They expect discipline to be maintained and risk-adjusted economics to remain terrific into **2025**.  **[EG_3381636_7]** 

2. **Attritional Loss Ratio**  
   **Q:** Why was the attritional loss ratio 64%, and will it improve?  
   **A:** The **64%** attritional loss ratio is due to timing and mix, as well as conservative loss picks in casualty lines.  **[EG_3381636_6]**  They have been running between **63%-64%** over the past two years.  **[EG_3381636_6]**  The loss ratio should come down as they shift to more short-tail lines throughout the year and over the three-year plan.  **[EG_3381636_6]** 

3. **Property Cat Growth**  
   **Q:** Why was property Cat growth only 4%?  
   **A:** The **4%** growth is due to premium recognition timing.  **[EG_3381636_5]**  At the January 1 renewal, they grew property Cat business by **24%** at outstanding risk-adjusted returns.  **[EG_3381636_5]**  At the April 1 renewal, they grew globally by **10%** and North America property Cat by **76%**.  **[EG_3381636_5]**  The lower growth will correct itself over time.  **[EG_3381636_5]** 

4. **Capital Utilization and Constraints**  
   **Q:** Are there constraints on growth due to capital utilization?  
   **A:** There are no constraints given their available capacity.  **[EG_3381636_10]**  Despite growth in property pro rata, they have full degrees of freedom to underwrite as they see fit.  **[EG_3381636_10]**  Their net PMLs have increased modestly, but they are well within their risk appetite and have plenty of room to maneuver.  **[EG_3381636_9]** **[EG_3381636_13]** 

5. **Total Shareholder Return Target**  
   **Q:** Are there risks to hitting the 17% TSR target?  
   **A:** They see no change to the **17%** TSR target and started the year at **18.1%**.  **[EG_3381636_13]**  They have various avenues to achieve leading financial returns and are within their Cat underwriting appetite.  **[EG_3381636_13]** 

6. **Reserves Update**  
   **Q:** Any updates on reserves for 2016-2019 accident years?  
   **A:** After a comprehensive Q1 review, they see nothing that alters their view of their reserve portfolio.  **[EG_3381636_15]** 

7. **Casualty Reinsurance and Social Inflation**  
   **Q:** What's happening with casualty reinsurance amid social inflation?  
   **A:** They take a prudent approach to ultimate loss ratios and have strengthened reserves in reinsurance casualty over the last few years.  **[EG_3381636_11]**  At the January 1 renewal, they reduced their expiring casualty book by about **15%** due to portfolio management actions.  **[EG_3381636_11]** 

8. **Insurance Expense Ratio**  
   **Q:** Why is the Insurance expense ratio elevated, and will it persist?  
   **A:** The expense ratio will be elevated for several quarters due to international build-out.  **[EG_3381636_16]**  They're adding talent and technology, with premiums growing meaningfully but earned premiums trailing.  **[EG_3381636_16]**  Expenses will level out as scale catches up, and they maintain a competitive group expense ratio at low **6%**.  **[EG_3381636_16]** 

9. **Capital Return and Share Buybacks**  
   **Q:** Thoughts on capital return and share buybacks?  
   **A:** They started modest share buybacks in the first quarter and see no reason they cannot do capital management actions like share buybacks while prioritizing organic growth.  **[EG_3381636_12]** 

10. **Facultative Market Evolution**  
    **Q:** How is the facultative market evolving?  
    **A:** They had a terrific quarter in facultative business, growing about **14%** over prior year.  **[EG_3381636_14]**  There's significant demand from cedents, especially in short-tail lines.  **[EG_3381636_14]**  They are cautious and prudent in areas like commercial auto and professional lines.  **[EG_3381636_14]** 

11. **Professional Lines Growth**  
    **Q:** What caused the acceleration in professional lines growth?  
    **A:** The growth was due to one large fronting arrangement in their Canadian operation, not indicative of a general trend.  **[EG_3381636_19]** 

12. **Reinsurance for Insurance Segment**  
    **Q:** Plans for buying reinsurance for Insurance segment?  
    **A:** They consistently buy reinsurance for their Insurance business to manage volatility and exposure.  **[EG_3381636_20]**  Over time, their net-to-gross ratio may increase as they retain more business, but changes will be modest and gradual.  **[EG_3381636_20]** 

13. **Insurance Combined Ratio Guidance**  
    **Q:** Does the 90%-92% combined ratio guidance still stand?  
    **A:** Yes, they expect to achieve that range.  **[EG_3381636_17]**  Factors include mix shifting to short-tail lines, strong margins, and expenses leveling out as the business scales.  **[EG_3381636_17]** 

1d888610724e7e6d763870854794c1648e1039150cbf198f1f449bd558c36efe

- **Everest Group has ample capital and is capitalizing on profitable growth opportunities**, with no restrictions on capital management tools like share buybacks, highlighting strong financial flexibility.  **[EG_3372584_25]** **[EG_3372584_22]**
- **Management is confident in achieving their 2024-2026 financial objectives**, even in the face of industry challenges like social inflation, demonstrating effective strategic planning and risk management.  **[EG_3372584_23]**
- **The company's disciplined underwriting and proactive reserve strengthening positions them ahead of industry trends**, indicating a prudent approach to risk and potential for strong financial performance.  **[EG_3372584_15]** **[EG_3372584_21]** **[EG_3372584_13]**

a9d262268416d938e1de6a144c06a703f7d16f7ab1d2e973cb509adff5e4dc27

- **Everest is experiencing increased expenses due to investments in human capital and technology**, potentially leading to higher expense ratios.  **[EG_3362306_20]** ,  **[EG_3362306_15]**
- **Social inflation is a real concern in the casualty reinsurance market**, which needs to be managed and could impact future returns.  **[EG_3362306_7]**
- **Substantial growth in property reinsurance and insurance may increase risk aggregation and exposure to catastrophe risks**, despite the company's confidence in their risk management processes.  **[EG_3362306_18]**

8868c81dd8ffaf5214d9565a42cc8b955071edbdb2f8714442c16edd2dd4e383

1. **Reserve Strengthening Impact**  
   **Q:** Will reserve strengthening impact capital or buybacks?  
   **A:** Management does not see a scenario where reserve strengthening will impact share buybacks or excess capital strength. Elevated risk in North American casualty is an industry-wide issue, and they are monitoring it carefully.  **[EG_3405028_14]** 

2. **Property CAT Pricing Outlook**  
   **Q:** What is the outlook for property CAT pricing at 1/1 renewals?  
   **A:** Management expects property CAT pricing to increase by **5-10%** in both the U.S. and Europe at the January renewals due to recent natural catastrophes like Hurricanes Milton and Helene and Storm Boris. Demand for capacity is rising, and losses have been significant.  **[EG_3405028_10]** **[EG_3405028_11]** **[EG_3405028_25]** 

3. **Elevated Casualty Loss Trends**  
   **Q:** Are you seeing elevated loss activity in casualty lines?  
   **A:** Yes, they are experiencing elevated loss activity in U.S. casualty lines, particularly in excess casualty, general liability, and commercial auto in the third quarter. Social inflation and higher loss trends are impacting these lines.  **[EG_3405028_7]** **[EG_3405028_22]** **[EG_3405028_23]** 

4. **Shift to Short-tail Lines**  
   **Q:** Will shifting to short-tail lines reduce loss ratios?  
   **A:** Generally yes, shifting to property and specialty short-tail lines is expected to reduce loss ratios. However, elevated losses in casualty lines are offsetting some benefits, resulting in a flat attritional loss ratio.  **[EG_3405028_7]** **[EG_3405028_13]** **[EG_3405028_23]** 

5. **Combined Ratio Guidance**  
   **Q:** Can you achieve the 93-94% combined ratio guidance?  
   **A:** They believe they can achieve the **93-94%** combined ratio, depending on catastrophe losses, and are confident about reaching **92%** in the second half of 2025 through scaling premiums, favorable mix, and expense leverage.  **[EG_3405028_8]** **[EG_3405028_19]** **[EG_3405028_21]** 

6. **Reinsurance vs Insurance Reserves**  
   **Q:** Why more confidence in reinsurance reserves than insurance?  
   **A:** The reinsurance portfolio is highly diversified with conservative underwriting and less exposure to U.S. casualty lines. In contrast, the insurance portfolio is heavier in U.S. casualty, experiencing elevated losses, leading to more caution.  **[EG_3405028_16]** 

7. **International Expansion Progress**  
   **Q:** What's the status of international operations?  
   **A:** All international operations are up and running, with licenses obtained and business being written in all targeted countries. Earned premiums are exceeding expectations.  **[EG_3405028_17]** **[EG_3405028_19]** 

8. **Expense Ratio Outlook**  
   **Q:** How should we think about the expense ratio in insurance?  
   **A:** The commission ratio is expected to remain stable around **12%**. General expenses are currently elevated due to upfront investments but will decrease as earned premiums scale, improving the expense ratio over time.  **[EG_3405028_9]** **[EG_3405028_19]** 

9. **Cyber Insurance Outlook**  
   **Q:** What's the outlook for cyber insurance pricing?  
   **A:** Cyber pricing is declining slightly. Cyber represents a very small portion of the portfolio. Reinsurance terms remain excellent with tight loss ratio caps. They are cautious but still find it attractive.  **[EG_3405028_26]** 

e1537a141ba978c261e300f425a5d7625743d2b7c17d108b95511a0e2596a023

- **Underestimated inflation in prior accident years (2016-2019) led to reserve strengthening**, indicating possible under-reserving in the past and impacting profitability.  **[EG_3372584_13]** **[EG_3372584_24]**
- **Capital management activities like share buybacks may be limited** due to the need to deploy capital to support growth and address reserve deficiencies, which could affect shareholder returns.  **[EG_3372584_22]** **[EG_3372584_25]**
- **Potential exposure to increased claims from reinsurance clients experiencing reserve charges**, raising concerns about future claim severity and adequacy of reserves.  **[EG_3372584_21]**

63dddc408637329a60fb6b71ab913c54e1aea854fd15e11eb1c408d34ed38d8d

1. **Insurance Reserve Strengthening**  
   **Q:** What prompted the recent reserve strengthening in Insurance?  
   **A:** The company saw a **marked rise in actual losses during the 2023 calendar year** for accident years **2016 to 2019**, primarily in **general liability** due to **social inflation**.  **[EG_3372584_10]**  They believe the issue is now captured, as reporting patterns are well developed, and they feel confident in closing the books on those years.  **[EG_3372584_10]** 

2. **Reinsurance Reserve Confidence**  
   **Q:** Should investors worry about similar reserve issues in Reinsurance?  
   **A:** Management is confident there won't be similar patterns in Reinsurance reserves.  **[EG_3372584_10]**  They addressed potential impacts back in **2020 with a $400 million reserve charge**, primarily allocated to casualty years **2016 to 2019**, and believe they are **prudently reserved**.  **[EG_3372584_16]**  The data indicates Reinsurance reserves for those years are in a stronger position.  **[EG_3372584_16]** 

3. **Impact of Inflation on Future Years**  
   **Q:** Are loss picks adequate for accident years 2020 to 2023 amid inflation concerns?  
   **A:** Management has been **proactive since 2020**, increasing initial loss picks, raising inflation assumptions, and pushing rates in excess of trends.  **[EG_3372584_10]** **[EG_3372584_12]** **[EG_3372584_17]**  They feel confident about reserves for **2020 onwards**, having taken **portfolio actions** and set **elevated loss ratios** to mitigate potential development.  **[EG_3372584_12]** **[EG_3372584_17]** 

4. **Reinsurance Loss Ratio and Property Losses**  
   **Q:** Why did the Reinsurance underlying loss ratio improvement slow in Q4?  
   **A:** The improvement was masked by **two large property risk losses in Q4**, which added about **60 basis points** to the total Reinsurance loss ratio.  **[EG_3372584_11]**  Also, out of prudence, they did not take credit for the **1/1/23 property rate increases** in their 2023 property attritional loss ratio.  **[EG_3372584_11]** 

5. **Capital Management and Share Buybacks**  
   **Q:** Will the company consider share buybacks given its capital position?  
   **A:** While they have **ample capital**, current **underwriting opportunities are very lucrative**, particularly in Reinsurance.  **[EG_3372584_22]**  They prioritize deploying capital to **capture profitable growth**, but capital management through buybacks remains a tool if they cannot meet their **total shareholder return objectives**.  **[EG_3372584_22]** **[EG_3372584_23]** 

6. **Reinsurance Market Outlook**  
   **Q:** Is the favorable reinsurance market sustainable?  
   **A:** Management believes the **exceptional conditions** will persist past the **January 1, 2025** renewal.  **[EG_3372584_19]**  Factors include a persistent gap between supply and demand, cautious underwriting psychology after elevated loss years, and underlying loss trends due to climate change.  **[EG_3372584_19]** 

7. **Property Catastrophe Risk Profile**  
   **Q:** How is the company's property catastrophe risk exposure changing?  
   **A:** Despite growing the property cat book, the **1-in-100-year PML** has remained relatively stable due to **portfolio shaping**, higher average attachment levels, and diversification.  **[EG_3372584_20]**  They are becoming more of a **gross underwriter** and plan to take on more **tail risk** within their risk appetite.  **[EG_3372584_20]** 

8. **Confidence in Achieving Objectives**  
   **Q:** Can the company meet its objectives despite social inflation?  
   **A:** Management is confident in achieving their **Investor Day targets** from **2024 to 2026**.  **[EG_3372584_23]**  They cite a well-diversified portfolio, disciplined capital allocation, and prudent loss picks that account for social inflation.  **[EG_3372584_23]** 

9. **Reinsurance Reserves and Bordereaux**  
   **Q:** Has the company accounted for increases in claims activity from cedents?  
   **A:** Yes, they have stayed ahead by **collaborating closely with cedents** and getting signals earlier than reported bordereaux, ensuring they build sufficient prudence into loss estimates.  **[EG_3372584_21]** 

10. **Impact of Florida Reforms**  
    **Q:** How attractive is the Florida market post-reform?  
    **A:** The company views the reforms positively but will wait for results to show in data before adjusting underwriting positions.  **[EG_3372584_26]**  They will continue to provide capacity as long as **risk-adjusted returns** meet their excellent expectations.  **[EG_3372584_26]** 

fa57daaa07492733169944a55a78b70c84d69333c74308f35886ee9128740993

- **Growth in professional lines may not be sustainable**, as it was primarily driven by a one-time large fronting arrangement in Canada, which is not expected to continue for the rest of the year.  **[EG_3381636_22]**
- **Elevated loss trends in casualty lines are leading to increased conservatism in loss picks**, resulting in a higher attritional loss ratio in the Insurance segment. This could pressure future underwriting profitability.  **[EG_3381636_8]**
- **Potential peaking of property reinsurance pricing may limit future margin expansion**. Brokers are indicating that property reinsurance pricing could be moderating due to ample capacity, which may impact the company's profitability in upcoming renewals.  **[EG_3381636_7]**

0698f43395abce44c772aeed9f4d59fcafc6ca7132614afeb0835dade582385c

Everest Group Ltd (EG)

Financials