Everest Reports First Quarter 2025 Results

Net Income of $210 million and Net Operating Income of $276 million

Annualized YTD 5.7% Net Income ROE and 7.5% Net Operating Income ROE

Common Share Repurchases of $200 million in the Quarter

Everest Group, Ltd. (NYSE:EG), a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions, today reported its first quarter 2025 results.

First Quarter 2025 Highlights

• Net Income of $210 million; Net Operating Income of $276 million
• Total Shareholder Return of 5.6% annualized¹; Annualized year-to-date 5.7% Net Income ROE and 7.5% Net Operating Income ROE
• $4.4 billion in gross written premium with year-over-year decreases of 2.0% for the Group, 1.1% for Reinsurance, and 0.1% for Insurance on a comparable basis; Strong double-digit growth in property and specialty lines across both segments was offset by reductions in certain casualty lines
• Combined ratios of 102.7% for the Group, 103.3% for Reinsurance and 100.5% for Insurance. Catastrophe losses contributed 13.9 points, 18.0 points, and 1.1 points to the Group, Reinsurance, and Insurance combined ratios, respectively.
• Attritional combined ratios of 90.2% for the Group, 87.1% for Reinsurance and 99.1% for Insurance. The Washington, D.C. aviation losses, net of recoveries and reinstatement premiums, contributed 2.0 points, 2.4 points, and 0.9 points to the Group, Reinsurance, and Insurance attritional loss ratios, respectively.
• Pre-tax underwriting income (loss) of ($104) million for the Group, ($96) million for Reinsurance, ($5) million for Insurance, and ($3) million for Other
• $472 million of pre-tax catastrophe losses net of recoveries and reinstatement premiums versus $85 million in Q1 2024. Reinstatement premiums were $62 million in Q1 2025, while there were none in the prior year quarter.
• Net investment income improved to $491 million versus $457 million in the prior year quarter
• Operating cashflow for the quarter of $928 million versus $1.1 billion in the first quarter 2024

"The industry experienced the highest level of Q1 catastrophe losses in over a decade, primarily from the California wildfires. As expected, this affected our underwriting results for the quarter," said Jim Williamson, Everest President and CEO. "Given our disciplined approach to catastrophe risk underwriting, our losses were within our expected range. We continue to see opportunities to deploy capital at excellent expected returns, as evidenced by our successful execution of the January and April first reinsurance renewals. In insurance, the execution of our U.S. casualty remediation remains on track to be completed later this year, while we still see significant opportunities in property and specialty lines. Everest is delivering on its strategic plan, and I am confident in our ability to achieve our return objectives."

Summary of First Quarter 2025 Net Income and Other Items

• Net income of $210 million, equal to $4.90 per diluted share versus first quarter 2024 net income of $733 million, equal to $16.87 per diluted share
• Net operating income of $276 million, equal to $6.45 per diluted share versus first quarter 2024 net operating income of $709 million, equal to $16.32 per diluted share
• GAAP combined ratio of 102.7%, including 13.9 points of catastrophe losses, versus 88.8% in the first quarter 2024, including 2.3 points of catastrophe losses

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

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.

Reinsurance Segment – Quarterly Highlights

• Gross written premiums decreased 1.1% on a comparable basis (constant dollar basis and excluding reinstatement premiums)², to approximately $3.2 billion. We continue to demonstrate our franchise value and drive growth in lines with the best expected risk-adjusted returns.
• Growth was led by a 11.5% increase in Property Pro-Rata, a 7.9% increase in Property Catastrophe XOL, and a 7.7% increase in Property Non-Catastrophe XOL, partially offset by a 21.7% decrease in Casualty Pro-Rata and a 8.5% decrease in Casualty XOL, when adjusting for reinstatement premiums.
• Attritional loss ratio increased 260 basis points over last year to 59.8%, while the attritional combined ratio increased 270 basis points to 87.1% versus a year ago⁴. The increases were primarily driven by the Washington, D.C. aviation losses, net of recoveries and reinstatement premiums, which added 2.4 points to the attritional loss and combined ratios.
• Pre-tax catastrophe losses were $461 million net of estimated recoveries and reinstatement premiums, driven primarily by the California Wildfires. The California Wildfires accounted for $442 million of catastrophe losses, net of estimated recoveries and reinstatement premiums, in the quarter. Reinstatement premiums were $62 million in Q1 2025, while the prior year quarter was not impacted by reinstatement premiums.
• Risk-adjusted returns remain very attractive, particularly in property and specialty lines.

Insurance Segment – Quarterly Highlights

• Gross written premiums decreased 0.1% on a comparable basis (constant dollar basis and excluding reinstatement premiums)², to approximately $1.1 billion 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 19.0% in Property/Short Tail and 16.1% in Other Specialty lines. Growth was offset by a decrease of 16.6% in Specialty Casualty, primarily in North America, reflecting our focus on lines of business with better expected margins, 9.9% in Professional Liability, and 19.8% in Workers' Compensation.
• Pre-tax catastrophe losses were $10 million, net of estimated recoveries and reinstatement premiums, a slight increase over the prior year quarter, which benefited from benign catastrophe losses.
• Year-over-year pricing continues to accelerate across North American casualty lines (excluding financial lines).

Other Segment

• Gross written premiums reflect a limited number of renewed and new policies written on the Company's paper by the purchaser of the sports and leisure business, for a finite period of time post-closing
• The business is performing in-line with our expectations and we expect the segment's contribution to Group results to be de minimis

Investments and Shareholders' Equity as of March 31, 2025

• Total invested assets and cash of $42.6 billion versus $41.5 billion on December 31, 2024
• Shareholders' equity of $14.1 billion vs. $13.9 billion on December 31, 2024, including $561 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 $14.7 billion on December 31, 2024
• Book value per share of $332.39 versus $322.97 at December 31, 2024
• Book value per share excluding unrealized gains (losses) on fixed maturity, available for sale securities of $345.57 versus $342.74 at December 31, 2024
• Common share repurchases of $200.0 million during the quarter, representing 574,000 shares at an average price of $348.43 per share.
• Common share dividends declared and paid in the quarter of $2.00 per common share equal to $85 million

This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other 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 May 1, 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:

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:

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:

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.

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.

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 3 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 3 for a reconciliation of book value per common share outstanding (excluding URA(D)) and book value per share.

--Financial Details Follow--

View source version on businesswire.com: https://www.businesswire.com/news/home/20250430290902/en/

Media: Dawn Lauer

Chief Communications Officer

908.300.7670

Investors: Matt Rohrmann

Head of Investor Relations

908.604.7343