Record Annual Net Income of $2.5 billion and
Operating Income of $2.8 billion
Annual 20.9% Net Income ROE and 23.1%
Operating Income ROE; TSR1 of 26.5%
Fourth Quarter Net Income of $804 million
and Operating Income of $1.1 billion
Well Positioned in 2024 Following
Outstanding 1/1 Renewals
Everest Group, Ltd. (NYSE: EG), a global underwriting leader
providing best-in-class property, casualty, and specialty
reinsurance and insurance solutions, today reported its fourth
quarter 2023 results.
Full Year 2023 Highlights
- 20.9% Net Income ROE and 23.1% Operating Income ROE; Total
Shareholder Return of 26.5%1
- $16.6 billion in gross written premium with year-over-year
growth of 20.9%2 as reported for the Group, 26.4%2 for Reinsurance,
and 10.3%2 for Insurance
- Combined ratios of 90.9% for the Group, 86.4% for Reinsurance
and 103.0% for Insurance
- Group attritional combined ratio of 86.9% when excluding the
impact of 0.7 points from profit commissions associated with net
favorable loss reserve development versus 87.4% in the prior
year
- $451 million of pre-tax catastrophe losses net of recoveries
and reinstatement premiums, versus $945 million in the prior
year
- Net investment income increased over $600 million to $1.4
billion, a company record
- Book value per share excluding unrealized gains (losses) on AFS
fixed maturity investments increased 23.8% to $320.95 versus
$259.18 at December 31, 2022
- Strong operating cashflow for the year of $4.6 billion, a
company record
Fourth Quarter 2023 Highlights
- 23.8% Net Income ROE and 32.4% Operating Income ROE
- $4.3 billion in gross written premium with year-over-year
growth of 18.3%2 for the Group, 21.9%2 for Reinsurance, and 11.6%2
for Insurance
- Combined ratios of 93.2% for the Group, 78.8% for Reinsurance
and 132.4% for Insurance
- Group attritional combined ratio of 86.7% when excluding the
impact of 2.6 points from profit commissions associated with
favorable loss reserve development versus 87.3% in the prior
year
- Net favorable development of approximately $5 million in prior
year loss reserves, resulting in a decrease of 0.1 points on the
combined ratio for the Group. Reinsurance benefited from favorable
development of $397 million, largely from mortgage and short-tail
lines. Insurance reserves were strengthened by $392 million to
address the impact of social inflation for long-tail lines, focused
on the 2016 to 2019 accident years.
- $143 million of pre-tax catastrophe losses net of recoveries
and reinstatement premiums, primarily driven by Hurricane Otis,
versus $15 million in the prior year
- Net investment income improved to $411 million versus $210
million in the prior year fourth quarter, a company record, driven
by strong fixed income and alternative investment returns
- Successful execution of our strategy to sell $3.3 billion of
lower yielding bonds in the quarter, reinvesting the proceeds into
higher-yielding securities with enhanced overall credit quality,
contributing to after-tax net realized losses of approximately $211
million and extending duration from 2.7 to 3.3 years sequentially.
This is expected to add significant additional interest income in
2024 and beyond.
- Recognized a $578 million tax benefit from realized deferred
taxes accrued driven by the change in Bermuda tax law. This is a
preliminary estimate and subject to change.
- Strong operating cashflow for the quarter of $1.0 billion,
in-line with the prior year quarter
- With the successful completion of January 1 renewals, we were
able to fully deploy the remaining capital raised in May, as well
as optimize our hedging strategy
Footnote 1 denotes annualized figure;
represents Total Shareholder Return or "TSR"
Footnote 2 denotes constant currency
figure and excludes reinstatement premiums
“Everest's strong fourth quarter performance capped off an
exceptional 2023, delivering record annual results in underwriting
income, net investment income, operating income, net income, and
cash flow from operations. We executed on our strategic objectives,
while delivering an operating ROE of over 23% and a Total
Shareholder Return of over 26% for the full year," said Juan C.
Andrade, Everest President and CEO. "2023 was the most profitable
year in our history. The Everest of today is a stronger and more
sophisticated company. We are delivering leading financial returns
and we are on track to achieve the targets we set out at our most
recent Investor Day. The strength and flexibility of our business
was apparent in the fourth quarter as we continued to generate
leading returns and further solidified our balance sheet. Everest
has entered 2024 stronger and better positioned to take advantage
of market opportunities in both franchises. This is evidenced by
another well-executed and outstanding January 1 reinsurance renewal
and improved primary pricing, generating excellent outcomes for our
global portfolio. Looking ahead, we remain focused on achieving our
strategic plan goals, with significant momentum across both
businesses, and an exceptional team driving even greater value for
our shareholders."
Summary of Fourth Quarter 2023 Net Income
and Other Items
- Net Income of $804 million, equal to $18.53 per diluted share
versus fourth quarter 2022 net income of $496 million, equal to
$12.66 per diluted share
- Operating income of $1.1 billion, equal to $25.18 per diluted
share versus fourth quarter 2022 net operating income of $478
million, equal to $12.21 per diluted share
- GAAP combined ratio of 93.2%, including 4.3 points of
catastrophe losses versus the fourth quarter 2022 figure of 87.8%,
including 0.5 points of catastrophe losses
The following table summarizes the Company’s Net Income and
related financial metrics.
Net income and operating income
Q4
Year to Date
Q4
Year to Date
All values in USD millions except for
per share amounts and percentages
2023
2023
2022
2022
Everest
Group
Net income (loss)
804
2,517
496
597
Operating income (loss) (1)
1,093
2,776
478
1,065
Net income (loss) per diluted common
share
18.53
60.19
12.66
15.19
Net operating income (loss) per diluted
common share
25.18
66.39
12.21
27.08
Net income (loss) return on average equity
(annualized)
23.8%
20.9%
20.1%
6.0%
After-tax operating income (loss) return
on average equity (annualized)
32.4%
23.1%
19.4%
10.6%
Notes
(1)
Refer to the reconciliation of net income
to net operating income found on page 8 of this press release
Shareholders' Equity and Book Value per
Share
Q4
Year to Date
Q4
Year to Date
All values in USD millions except for
per share amounts and percentages
2023
2023
2022
2022
Beginning shareholders' equity
11,226
8,441
7,649
10,139
Net income (loss)
804
2,517
496
597
Change - unrealized gains (losses) - Fixed
inc. investments
1,146
986
250
(1,948)
Dividends to shareholders
(76)
(288)
(65)
(255)
Purchase of treasury shares
—
—
(1)
(61)
Public equity offering of shares
—
1,445
—
—
Other
103
102
110
(31)
Ending shareholders' equity
13,202
13,202
8,441
8,441
Common shares outstanding
43.4
39.2
Book value per common share
outstanding
304.29
215.54
Less: Unrealized appreciation/depreciation
of fixed maturity investments ("URAD")
(16.65)
(43.64)
Adjusted book value per common share
outstanding excluding URAD
320.95
259.18
Change in BVPS adjusted for dividends
44.3 %
(14.0) %
Total Shareholder Return ("TSR") -
Annualized
26.5 %
5.4 %
Common share dividends paid - last 12
months
6.80
6.50
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.
Underwriting information - Everest
Group
Q4
Year to Date
Q4
Year to Date
Year on Year Change
All values in USD millions except for
percentages
2023
2023
2022
2022
Q4
Year to Date
Gross written premium
4,323
16,637
3,639
13,952
18.8 %
19.2 %
Net written premium
3,861
14,730
3,188
12,344
21.1 %
19.3 %
Loss Ratio:
Current year
58.9 %
59.2 %
59.6 %
59.8 %
(0.7) pts
(0.6) pts
Prior year
(0.1) %
— %
— %
— %
(0.1) pts
— pts
Catastrophe
4.3 %
3.5 %
0.5 %
9.0 %
3.8 pts
(5.5) pts
Total Loss ratio
63.0 %
62.7 %
60.1 %
68.7 %
2.9 pts
(6.0) pts
Commission and brokerage ratio
23.8 %
22.0 %
21.6 %
21.4 %
2.2 pts
0.6 pts
Other underwriting expenses
6.3 %
6.3 %
6.0 %
5.8 %
0.3 pts
0.5 pts
Combined ratio
93.2 %
90.9 %
87.8 %
96.0 %
5.4 pts
(5.1) pts
Attritional combined ratio (1), (3)
89.3 %
87.6 %
87.3 %
87.4 %
2.0 pts
0.2 pts
Pre-tax net catastrophe losses (2)
143
451
15
945
Pre-tax net unfavorable (favorable) prior
year reserve development
(5)
(5)
—
(1)
Notes
(1)
Attritional ratios exclude catastrophe
losses, net CAT reinstatement premiums earned, prior year
development, COVID-19 losses and losses from the Russia/Ukraine
war.
(2)
Pre-tax net catastrophe losses are net of
reinsurance and reinstatement premiums
(3)
The attritional combined ratio for quarter
and year ended December 31, 2023 included approximately $94m of
profit commission related to loss reserves releases. Excluding this
profit commission, the Group’s attritional combined ratio would
have been 86.7% and 86.9% for the quarter and year ended December
31, 2023, respectively.
Reinsurance Segment – Quarterly Highlights
- Gross written premiums grew 21.9% on a constant dollar basis
and excluding reinstatement premiums, to approximately $2.9
billion. Growth was broad-based across geographies and lines.
- Growth was driven by 39.2% growth in Property Pro-Rata, 23.3%
growth in Property Catastrophe XOL, and 45.2% growth in Property
Non-Catastrophe XOL, when adjusting for reinstatement premiums, as
pricing increases and a flight to quality continue globally.
- Robust pricing momentum continued in the fourth quarter, with
Cat pricing up over 45% with improved terms/conditions.
- Attritional loss ratio improved 40-basis points over last year
to 57.8%, while the attritional combined ratio improved 90-basis
points to 85.1%, when excluding the impact of 3.6 points from
profit commissions associated with favorable loss reserve
development.
- Net favorable prior year development of $397 million, primarily
driven by a combination of well-seasoned mortgage and short-tail
lines.
- Pre-tax catastrophe losses were $135 million net of estimated
recoveries and reinstatement premiums, driven by Hurricane Otis as
well as a number of mid-sized events globally.
Underwriting information - Reinsurance
segment
Q4
Year to Date
Q4
Year to Date
Year on Year Change
All values in USD millions except for
percentages
2023
2023
2022
2022
Q4
Year to Date
Gross written premium
2,894
11,460
2,360
9,248
22.6 %
23.9 %
Net written premium
2,754
10,802
2,301
8,919
19.7 %
21.1 %
Loss Ratio:
Current year
57.6 %
57.6 %
58.2 %
58.5 %
(0.6) pts
(0.9) pts
Prior year
(15.2) %
(4.1) %
0.3 %
0.1 %
(15.5) pts
(4.2) pts
Catastrophe
5.5 %
4.6 %
0.5 %
10.8 %
5.0 pts
(6.2) pts
Total Loss ratio
47.9 %
58.1 %
59.0 %
69.4 %
(11.1) pts
(11.3) pts
Commission and brokerage ratio
28.4 %
25.7 %
24.9 %
24.6 %
3.5 pts
1.1 pts
Other underwriting expenses
2.5 %
2.6 %
2.8 %
2.5 %
(0.3) pts
0.1 pts
Combined ratio
78.8 %
86.4 %
86.8 %
96.5 %
(8.0) pts
(10.1) pts
Attritional combined ratio (1), (3)
88.7 %
86.1 %
86.0 %
86.2 %
2.7 pts
(0.1) pts
Pre-tax net catastrophe losses (2)
135
430
10
820
Pre-tax net unfavorable (favorable) prior
year reserve development
(397)
(397)
7
5
Notes
(1)
Attritional ratios exclude catastrophe
losses, net CAT reinstatement premiums earned, prior year
development, COVID-19 losses and losses from the Russia/Ukraine
war.
(2)
Pre-tax net catastrophe losses are net of
reinsurance and reinstatement premiums
(3)
The attritional combined ratio for quarter
and year ended December 31, 2023 included approximately $94m of
profit commission related to loss reserves releases. Excluding this
profit commission, the Reinsurance Segment’s attritional combined
ratio would have been 85.1% for the quarter and year ended December
31, 2023, respectively.
Insurance Segment – Quarterly Highlights
- Gross written premiums rose to $1.4 billion, a 11.6% increase
year-over-year in constant dollars, driven by a diversified mix of
property and specialty lines, partially offset by lower written
premiums in monoline workers' compensation and financial
lines.
- Pre-tax catastrophe losses were $8 million, net of estimated
recoveries and reinstatement premiums, relatively in-line with the
prior year.
- Net reserve strengthening of $392 million, reflecting our
proactive approach to casualty line reserves, which are impacted by
well-defined social inflation factors, focused on accident years
2016 to 2019.
- Attritional loss ratio improved 70-basis points over last year
to 62.6%, driven by favorable current year loss experience and
business mix.
- Expense ratio of 28.2% with continued investment in systems,
talent, and our global platform.
- Pricing continues to exceed loss trend.
Underwriting information - Insurance
segment
Q4
Year to Date
Q4
Year to Date
Year on Year Change
All values in USD millions except for
percentages
2023
2023
2022
2022
Q4
Year to Date
Gross written premium
1,428
5,177
1,278
4,704
11.7 %
10.0 %
Net written premium
1,107
3,929
887
3,426
24.8 %
14.7 %
Loss Ratio:
Current year
62.5 %
63.6 %
63.3 %
63.2 %
(0.8) pts
0.4 pts
Prior year
40.8 %
10.8 %
(0.9) %
(0.2) %
41.7 pts
11.0 pts
Catastrophe
0.9 %
0.6 %
0.6 %
3.9 %
0.3 pts
(3.3) pts
Total Loss ratio
104.2 %
75.0 %
63.1 %
66.9 %
41.1 pts
8.1 pts
Commission and brokerage ratio
11.6 %
11.8 %
12.7 %
12.9 %
(1.1) pts
(1.1) pts
Other underwriting expenses
16.6 %
16.2 %
14.7 %
14.6 %
1.9 pts
1.6 pts
Combined ratio
132.4 %
103.0 %
90.5 %
94.4 %
41.8 pts
8.6 pts
Attritional combined ratio (1)
90.8 %
91.7 %
90.7 %
90.7 %
0.1 pts
1.0 pts
Pre-tax net catastrophe losses (2)
8
20
5
125
Pre-tax net unfavorable (favorable) prior
year reserve development
392
392
(7)
(7)
Notes
(1)
Attritional ratios exclude catastrophe
losses, net CAT reinstatement premiums earned, prior year
development, COVID-19 losses and losses from the Russia/Ukraine
war.
(2)
Pre-tax net catastrophe losses are net of
reinsurance and reinstatement premiums
Investments and Shareholders’ Equity as of December 31,
2023
- Total invested assets and cash of $37.1 billion versus $29.9
billion on December 31, 2022
- Shareholders’ equity of $13.2 billion vs. $8.4 billion on
December 31, 2022, including $723 million of unrealized net losses
on AFS fixed maturity investments
- Shareholders’ equity excluding unrealized gains (losses) on AFS
fixed maturity investments of $13.9 billion versus $10.1 billion on
December 31, 2022
- Book value per share of $304.29 versus $215.54 at December 31,
2022
- Book value per share excluding unrealized gains (losses) on AFS
fixed maturity investments of $320.95 versus $259.18 at December
31, 2022
- Common share dividends declared and paid in the quarter of
$1.75 per share equal to $76 million
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.
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 February 8, 2024. The call will be available
on the Internet through the Company’s website at
https://www.everestglobal.com/investor-relations.
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.
_______________________________________________ The Company
generally uses after-tax operating income (loss), a non-GAAP
financial measure, to evaluate its performance. After-tax operating
income (loss) consists of net income (loss) excluding after-tax net
gains (losses) on investments and after-tax net foreign exchange
income (expense) as the following reconciliation displays:
(Dollars in millions, except per share
amounts)
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2022
2023
2022
(unaudited)
(unaudited)
Amount
Per Diluted Share
Amount
Per Diluted Share
Amount
Per Diluted Share
Amount
Per Diluted Share
After-tax operating income (loss)
$
1,093
$
25.18
$
478
$
12.21
$
2,776
$
66.39
$
1,065
$
27.08
After-tax net gains (losses) on
investments
(220
)
(5.06
)
49
1.25
(236
)
(5.65
)
(366
)
(9.30
)
After-tax net foreign exchange income
(expense)
(69
)
(1.60
)
(31
)
(0.80
)
(23
)
(0.55
)
(102
)
(2.60
)
Net income (loss)
$
804
$
18.53
$
496
$
12.66
$
2,517
$
60.19
$
597
$
15.19
(Some amounts may not reconcile due to
rounding.)
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 operating income (loss) in their
analyses for the reasons discussed above. The Company provides
after-tax 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.
--Financial Details Follow--
EVEREST GROUP, LTD. CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS)
Three Months Ended
Twelve Months Ended
December 31
December 31
(Dollars in millions, except per share
amounts)
2023
2022
2023
2022
(unaudited)
(unaudited
REVENUES:
Premiums earned
$
3,578
$
3,012
$
13,443
$
11,787
Net investment income
411
210
1,434
830
Total net gains (losses) on
investments
(255
)
64
(276
)
(455
)
Other income (expense)
(75
)
(30
)
(14
)
(102
)
Total revenues
3,659
3,256
14,587
12,060
CLAIMS AND EXPENSES:
Incurred losses and loss adjustment
expenses
2,254
1,811
8,427
8,100
Commission, brokerage, taxes and fees
853
651
2,952
2,528
Other underwriting expenses
226
182
846
682
Corporate expenses
18
16
73
61
Interest, fees and bond issue cost
amortization expense
36
27
134
101
Total claims and expenses
3,387
2,687
12,432
11,472
INCOME (LOSS) BEFORE TAXES
272
568
2,154
588
Income tax expense (benefit)
(532
)
72
(363
)
(9
)
NET INCOME (LOSS)
$
804
$
496
$
2,517
$
597
Other comprehensive income (loss), net of
tax:
Unrealized appreciation (depreciation)
("URA(D)") on securities arising during the period
923
223
743
(2,037
)
Reclassification adjustment for realized
losses (gains) included in net income (loss)
223
28
244
89
Total URA(D) on securities arising during
the period
1,146
251
986
(1,948
)
Foreign currency translation and other
adjustments
76
86
59
(77
)
Benefit plan actuarial net gain (loss) for
the period
15
15
15
15
Reclassification adjustment for
amortization of net (gain) loss included in net income
—
—
2
2
Total benefit plan net gain (loss) for the
period
16
15
17
17
Total other comprehensive income (loss),
net of tax
1,238
352
1,063
(2,008
)
COMPREHENSIVE INCOME (LOSS)
$
2,041
$
848
$
3,580
$
(1,411
)
EARNINGS PER COMMON SHARE:
Basic
$
18.53
$
12.66
$
60.19
$
15.19
Diluted
18.53
12.66
60.19
15.19
EVEREST GROUP, LTD. CONSOLIDATED BALANCE SHEETS
December 31,
(Dollars and share amounts in millions,
except par value per share)
2023
2022
(unaudited)
ASSETS:
Fixed maturities - available for sale, at
fair value
$
27,740
$
22,236
(amortized cost: 2023, $28,568; 2022,
$24,191, credit allowances: 2023, $(48); 2022, $(54))
Fixed maturities - held to maturity, at
amortized cost
(fair value: 2023, $854; 2022, $821, net
of credit allowances: 2023, $(8); 2022, $(9))
855
839
Equity securities, at fair value
188
281
Other invested assets
4,794
4,085
Short-term investments
2,127
1,032
Cash
1,437
1,398
Total investments and cash
37,142
29,872
Accrued investment income
324
217
Premiums receivable (net of credit
allowances: 2023, $(41); 2022, $(29))
4,768
3,619
Reinsurance paid loss recoverables (net of
credit allowances: 2023, $(26); 2022, $(23))
164
136
Reinsurance unpaid loss recoverables
2,098
2,105
Funds held by reinsureds
1,135
1,056
Deferred acquisition costs
1,247
962
Prepaid reinsurance premiums
713
610
Income tax asset, net
868
459
Other assets (net of credit allowances:
2023, $(9); 2022, $(5))
941
930
TOTAL ASSETS
$
49,399
$
39,966
LIABILITIES:
Reserve for losses and loss adjustment
expenses
24,604
22,065
Unearned premium reserve
6,622
5,147
Funds held under reinsurance treaties
24
13
Amounts due to reinsurers
650
567
Losses in course of payment
171
74
Senior notes
2,349
2,347
Long-term notes
218
218
Borrowings from FHLB
819
519
Accrued interest on debt and
borrowings
22
19
Unsettled securities payable
137
1
Other liabilities
582
555
TOTAL LIABILITIES
36,197
31,525
SHAREHOLDERS' EQUITY:
Preferred shares, par value: $0.01; 50.0
shares authorized; no shares issued and outstanding
—
—
Common shares, par value: $0.01; 200.0
shares authorized; (2023) 74.2 and (2022) 69.9
outstanding before treasury shares
1
1
Additional paid-in capital
3,773
2,302
Accumulated other comprehensive income
(loss), net of deferred income tax expense (benefit)
of $(99) at 2023 and $(250) at 2022
(934
)
(1,996
)
Treasury shares, at cost: 30.8 shares
(2023) and 30.8 shares (2022)
(3,908
)
(3,908
)
Retained earnings
14,270
12,042
Total shareholders' equity
13,202
8,441
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY
$
49,399
$
39,966
EVEREST GROUP, LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS
Twelve Months Ended
December 31
(Dollars in millions)
2023
2022
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
$
2,517
$
597
Adjustments to reconcile net income to net
cash provided by operating activities:
Decrease (increase) in premiums
receivable
(1,064
)
(435
)
Decrease (increase) in funds held by
reinsureds, net
(66
)
(197
)
Decrease (increase) in reinsurance
recoverables
143
(413
)
Decrease (increase) in income taxes
(559
)
(181
)
Decrease (increase) in prepaid reinsurance
premiums
(46
)
(166
)
Increase (decrease) in reserve for losses
and loss adjustment expenses
2,256
3,477
Increase (decrease) in unearned
premiums
1,387
655
Increase (decrease) in amounts due to
reinsurers
18
201
Increase (decrease) in losses in course of
payment
93
(186
)
Change in equity adjustments in limited
partnerships
(168
)
(94
)
Distribution of limited partnership
income
120
180
Change in other assets and liabilities,
net
(339
)
(297
)
Non-cash compensation expense
49
45
Amortization of bond premium (accrual of
bond discount)
(64
)
55
Net (gains) losses on investments
276
455
Net cash provided by (used in) operating
activities
4,553
3,695
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from fixed maturities
matured/called/repaid - available for sale
2,310
2,626
Proceeds from fixed maturities sold -
available for sale
3,849
1,403
Proceeds from fixed maturities
matured/called/repaid - held to maturity
105
39
Proceeds from equity securities sold
126
2,217
Distributions from other invested
assets
245
266
Cost of fixed maturities acquired -
available for sale
(10,653
)
(7,344
)
Cost of fixed maturities acquired - held
to maturity
(112
)
(153
)
Cost of equity securities acquired
(17
)
(1,003
)
Cost of other invested assets acquired
(902
)
(1,547
)
Net change in short-term investments
(1,034
)
149
Net change in unsettled securities
transactions
181
(71
)
Net cash provided by (used in) investing
activities
(5,902
)
(3,418
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Common shares issued (redeemed) during the
period for share-based compensation, net of expense
(23
)
(17
)
Proceeds from public offering of common
shares
1,445
—
Purchase of treasury shares
—
(61
)
Dividends paid to shareholders
(288
)
(255
)
Cost of debt repurchase
—
(6
)
Net FHLB borrowings (repayments)
300
—
Cost of shares withheld on settlements of
share-based compensation awards
(24
)
(20
)
Net cash provided by (used in) financing
activities
1,409
(359
)
EFFECT OF EXCHANGE RATE CHANGES ON
CASH
(23
)
39
Net increase (decrease) in cash
38
(42
)
Cash, beginning of period
1,398
1,441
Cash, end of period
$
1,437
$
1,398
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid (recovered)
$
196
$
171
Interest paid
130
98
NON-CASH TRANSACTIONS:
Reclassification of specific investments
from fixed maturity securities, available for sale at fair
value
to fixed maturity securities, held to
maturity at amortized cost net of credit allowances
—
722
On December 27, 2023, the Government of Bermuda enacted the
Corporate Income Tax Act 2023, which will apply a 15% corporate
income tax to certain Bermuda businesses in fiscal years beginning
on or after January 1, 2025. The act includes a provision referred
to as the economic transition adjustment, which is intended to
provide a fair and equitable transition into the tax regime, and
results in a deferred tax benefit for the Company. Pursuant to this
legislation, the Company has estimated a $578 million net deferred
tax asset as of December 31, 2023. This amount could be subject to
change. Any changes will be reflected in the 4th quarter of 2023 as
presented in the Company's 2023 Form 10-K filing. Net income
(loss), after-tax operating income (loss), net income (loss) per
diluted common share, after-tax operating income (loss) per diluted
common share, net income ROE, operating income ROE, total
shareholder return, book value per common share, and adjusted book
value per common share excluding URAD excluding the benefit
associated with the net deferred tax asset is displayed in the
following reconciliation:
Three Months Ended December
31,
Twelve Months Ended December
31,
2023
2023
Excl.
Bermuda CIT
Excl.
Bermuda CIT
As Reported
Bermuda Tax
impact
As Reported
Bermuda Tax
impact
Net income (loss)
$
804
$
226
$
578
$
2,517
$
1,939
$
578
Operating income (loss)
$
1,093
$
515
$
578
$
2,776
$
2,198
$
578
Per common share diluted net income
(loss)
$
18.53
$
5.21
$
13.31
$
60.19
$
46.38
$
13.81
Per common share diluted operating income
(loss)
$
25.18
$
11.87
$
13.31
$
66.39
$
52.58
$
13.81
Return on equity (annualized)
After-tax operating income (loss)
32.4
%
15.6
%
16.8 pts
23.1
%
18.7
%
4.4 pts
After-tax net gains (losses) on
investments
-6.5
%
-6.6
%
0.1 pts
-2.0
%
-2.0
%
— pts
After-tax foreign exchange income
(expense)
-2.1
%
-2.1
%
— pts
-0.2
%
-0.2
%
— pts
Net income (loss)
23.8
%
6.9
%
16.9 pts
20.9
%
16.5
%
4.4 pts
Total Shareholder Return (TSR)
26.5
%
21.3
%
5.2 pts
Book value per common share
outstanding
$
304.29
$
290.98
$
13.31
$
304.29
$
290.98
$
13.31
Adjusted book value per common share
outstanding excluding ("URAD")
$
320.95
$
307.63
$
13.32
$
320.95
$
307.63
$
13.32
(Some amounts may not reconcile due to
rounding.)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240207462919/en/
Media: Dawn Lauer Chief Communications Officer 908.300.7670
Investors: Matt Rohrmann Head of Investor Relations
908.604.7343
Grafico Azioni Everest (NYSE:EG)
Storico
Da Ott 2024 a Nov 2024
Grafico Azioni Everest (NYSE:EG)
Storico
Da Nov 2023 a Nov 2024
