Everest Group Ltd. filed SEC Form 8-K: Results of Operations and Financial Condition, Regulation FD Disclosure
$EG
Property-Casualty Insurers
Finance
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
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The Securities Exchange Act of 1934
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ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On January 27, 2025, Everest Group, Ltd. (the “Registrant”) issued a news release announcing preliminary financial information for both fourth quarter and full-year 2024 in advance of its full year and quarterly earnings to be released on February 3, 2025. As further described in the press release attached hereto as Exhibit 99.1, the Registrant expects to report full year 2024 net income in the range of $1.3 billion to $1.4 billion and non-GAAP net operating income in the range of $1.2 billion to $1.3 billion. The aforementioned results are inclusive of unfavorable development of prior year loss reserves of $1.5 billion and current accident year strengthening of $229 million in U.S. casualty lines, totaling $1.7 billion for the full year and fourth quarter 2024.
In addition, the Registrant published a recast quarterly financial supplement for the third quarter of 2024 on the Registrant's website, which contains prior period data for the fourth quarter of 2022 through the third quarter of 2024. During the fourth quarter of 2024, the Registrant revised its classification and presentation of certain run-off business, previously included within the Reinsurance and Insurance reportable segments, as part of a new segment called "Other". The new Other segment includes the results of our sports and leisure business sold in October 2024, consisting of policies written prior to the sale and polices renewed and certain new business written on the Registrant's paper post-sale. It also includes run-off asbestos and environmental exposures, certain discontinued insurance programs primarily written prior to 2012, and certain discontinued insurance and reinsurance coverage classes. The Other segment does not generally sell insurance or reinsurance products but is responsible for the management of existing policies and settlement of related losses. The only noteworthy exception relates to a limited number of renewed and new policies written on the Company's paper by the purchaser of the sports and leisure business referred to above, for a finite period of time post-closing. The Company will continue to have two reportable segments that actively sell products, Reinsurance and Insurance, consistent with how the on-going business is managed.
ITEM 7.01 REGULATION FD DISCLOSURE
A press release announcing preliminary financial information for both the full year and fourth quarter is attached as Exhibit 99.1. A presentation summarizing the aforementioned unfavorable development and strengthening of reserves is attached as Exhibit 99.2.
The above information 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. 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, 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.
The above information is being furnished under Item 7.01, “Regulation FD Disclosure.” This information shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that Section.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| EVEREST GROUP, LTD. | ||||||||
| By: | /S/ ROBERT J. FREILING | |||||||
| Robert J. Freiling Senior Vice President and Chief Accounting Officer | ||||||||
Dated: January 27, 2025 | ||||||||
EXHIBIT INDEX
Exhibit Number | Description of Document | Page No. | ||||||||||||
5 | ||||||||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document | |||||||||||||