Everest Group, Ltd. · NYSE:EG
Everest — Everest Re Group — Investor Presentation (2011)
18 slides from Everest's investor presentation, 2011
Slide 1: Investor Presentation
Investor Presentation Everest Re Group, Ltd. Wessex House, 45 Reid Street, 2nd Floor Hamilton HM DX, Bermuda
Slide 2: Cautionary note on forward-looking statements
Cautionary note on forward-looking statements This presentation 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 secur
Slide 3: Corporate Objectives
Corporate Objectives Everest Re Group is a worldwide multi-line reinsurance and insurance company. Our key objectives are to: Maximize book value per common share over time, and Earn a mid teens ROE over each market cycle. 3
Slide 4: Financial Highlights
Financial Highlights For the year ended December 31, YTD ($ millions) 2006 2007 2008 2009 2010 2011 Income Statement Data: Gross Premiums Written $ 4,000.9 $ 4,077.6 $ 3,678.1 $ 4,129.0 $ 4,200.7 $ 2,052.8 Net Premiums Earned 3,853.2 3,997.5 3,694.3 3,894.1 3,934.6 2,051.3 Net Investment Income 629.
Slide 5: Generating Shareholder Value
Generating Shareholder Value $140.00 Total Value Creation, defined as growth in book value per share + dividends, has averaged 14% annually over the last 10 years $120.00 5 Year: 14% CAGR $100.00 10 Year: 14% CAGR $80.00 ITD: 13% CAGR $60.00 $40.00 $20.00 $- 1995 1996 1997 1998 1999 2000 2001 2002 2
Slide 6: Long Term Performance
Long Term Performance Demonstrates Strong Cycle Management Key Profitability Measures 5 Year 10 Year ITD 2006-2010 2001 -2010 1996-2010 Combined Ratio* 93.8% 98.7% 99.4% Pretax Operating ROR 18.8% 13.5% 13.6% Operating ROE 13.3% 11.2% 11.8% BVPS CAGR 12.5% 12.9% 12.6% Shareholder Value 13.6% 13.6% 1
Slide 7: Leading Business Franchise
Leading Business Franchise Strong Brand Recognition Top ratings (A+, Aa3) Experienced Management Team and Board of Directors Winning Culture – disciplined, focused on profitable growth, accountable – results oriented, flat and nimble in decision making Efficient Operating Structure – 4.4%
Slide 8: Key Strategy Drivers
Key Strategy Drivers Emphasize underwriting profitability, not volume Understand and control risks Provide top quality client service Operate efficiently and effectively Attract and retain high quality staff Maintain superior financial strength 8
Slide 9: Multiple Distribution Channels
Multiple Distribution Channels Ability to Respond to Global Opportunities Key Operating Subsidiaries are International Operations are conducted located in the United States, through London, Ireland, Toronto, Ireland and Bermuda. Brussels, Cologne, Brazil and Singapore. London Germany Canada NY & NJ
Slide 10: Experienced Management Team
Experienced Management Team Average Years of Service is 17 Years 10
Slide 11: Strategic Management of the Portfolio
Strategic Management of the Portfolio 2010 2004 US Reins US Reins 20% 25% By Segment 27% Specialty 31% Specialty Intl Intl 18% 6% Bermuda 19% Bermuda 10% Insurance Insurance 29% 15% By Line of Business Reins Property Reins Property 17% 22% 3% Reins Casualty Reins Casualty 3% 45% 58% Ins Property Ins
Slide 12: Geographical Diversity in Reinsurance Book
Geographical Diversity in Reinsurance Book Europe/UK 17% USA 45% Middle East/Africa 6% Worldwide 2% Latin America 15% Asia/Australia 9% Canada 6% 12
Slide 13: Insurance Business by Line
Insurance Business by Line E&S Casualty 5% Property 5% Prof Liability Nonstandard 13% Auto 3% MultiLine 12% Workers Comp 29% Other Liability 33% 13
Slide 14: Capital Management Objectives
Capital Management Objectives Maintain capital at levels in excess of those required to retain ratings Target mid-teens ROE over the cycle Optimize capital structure; conservatively leverage the balance sheet Manage capital flows to/from shareholders to maintain capital efficiency/maximize v
Slide 15: Driving Shareholder Returns Through Buybacks
Driving Shareholder Returns Through Buybacks A Strategy of Active Capital Management Over Time Dividends & Share $550,000 Shares repurchased ($) Dividends paid to shareholders Common shares issued Repurchases $350,000 $150,000 $ thousands -$50,000 Common Equity Raised -$250,000 -$450,000 -$650,000 -
Slide 16: Conservative Leverage and Liquidity
Conservative Leverage and Liquidity As of 6/30/11 Capitalization Liquidity Investable Assets of $15.8 Billion U.S. Government Cash & Short 2% Junior Sub- 100% Debt Term Other 8% 4% Long-Term 80% Sub-Notes Mortgage/ Senior Debt Asset Backed 60% 16% Common 40% Equity Non U.S. 25% 20% Corporate 22% 0%
Slide 17: In Summary
In Summary … Recognized balance sheet strength – flight to quality Global franchise – expansive distribution platform Experienced management team – seasoned & opportunistic Diversified risk profile – prudent risk management Disciplined underwriting approach – profitability before growth
Slide 18: Everest Re Group, Ltd.
EVEREST RE GROUP, LTD. Wessex House, 45 Reid Street, 2nd Floor, P. O. Box 845, Hamilton, HM DX, Bermuda