Everest Group, Ltd. · NYSE:EG
Everest — Everest Re Group — Q2 2018 Earnings Presentation
19 slides from Everest's earnings presentation, 2018
Slide 1: Investor Presentation Second Quarter 2018
INVESTOR Presentation SECOND QUARTER 2018 Everest Re Group, Ltd Seon Place, 4th Floor 141 Front Street P.O. Box HM 845 Hamilton HM D19, 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 securi
Slide 3: Corporate Objectives
CORPORATE OBJECTIVES Everest Re Group is a worldwide multi-line reinsurance and insurance organization. Our key objectives are to: Maximize book value per common share over time, and Achieve returns that provide a double-digit compound annual growth rate in shareholder value. 3 EVEREST RE GROUP,
Slide 4: Generating Shareholder Value
GENERATING SHAREHOLDER Value TOTAL VALUE CREATION DEFINED AS BOOK VALUE PER SHARE + DIVIDENDS The Everest Advantage Gross Written Premium $ in billions A+ / A+ / A1 Top AM Best / S&P / Moody’s ratings $7.2 Strong brand recognition and winning culture focused on $5.8 $5.9 $6.0 underwriting discip
Slide 5: Experienced Management Team
EXPERIENCED MANAGEMENT Team Dominic Addesso President and Chief Executive Officer John Doucette Jonathan Zaffino Craig Howie Mike Kerner Sanjoy Mukherjee Ralph Groce Gail Van Beveren EVP and President EVP and President EVP and Chief EVP and Head of EVP, General SVP and Chief Senior Vice and CEO of t
Slide 6: Multiple Distribution Channels
MULTIPLE DISTRIBUTION Channels ABILITY TO RESPOND TO GLOBAL OPPORTUNITIES Key Operating Subsidiaries in the United States, Ireland, and Bermuda INSURANCE LOCATIONS: REINSURANCE United States LOCATIONS: Atlanta, GA Boston, MA United States Chicago, IL Chicago, IL Houston, TX Liberty Corne
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS $ IN MILLIONS For the year ended December 31, ($ in millions) 2018 YTD 2017 2016 2015 2014 2013 Income Statement Data: Gross Premiums Written $3,998.1 $ 7,173.9 $ 6,033.9 $ 5,891.7 $ 5,762.9 $ 5,220.4 Net Premiums Earned $3,349.2 5,937.8 5,320.5 5,292.8 5,043.7 4,736.3 Net Inves
Slide 8: Long Term Performance
LONG TERM Performance DEMONSTRATES STRONG CYCLE MANAGEMENT 5 Year 10 Year ITD Key Profitability Measures 2013-2017 2008-2017 1996-2017 Combined Ratio* 89.3% 93.9% 96.4% Pretax Operating ROR** 19.0% 16.0% 14.7% Operating ROE** 13.2% 11.0% 11.5% Shareholder Value (Compound Annual Growth Rate) 11.3% 10
Slide 9: Leading Global Reinsurer
LEADING GLOBAL Reinsurer Everest Reinsurance Ops 2015 2016 2017 2017 GWP Geography Gross Written Premium $4,359.4 $4,246.8 $5,114.7 55% United States Combined Ratio 78.5% 77.6% 103.1% 17% Europe (including UK) 11% Latin America/South America Attritional Combined Ratio 81.8% 81.1% 81.1% 5% Asia/Austr
Slide 10: A Premier Global Specialty Insurance Operation
A PREMIER GLOBAL Specialty Insurance Operation Everest Insurance Ops 2015 2016 2017 2017 GWP Business Mix Gross Written Premium $1,532.3 $1,787.0 $2,059.2 28% Prop / Short Tail Combined Ratio 106.3% 116.5% 104.8% 20% Workers Comp 19% Other Casualty 12% A&H Attritional Combined Ratio 94.3% 99.3% 96.9
Slide 11: Strong Risk Management Culture
STRONG RISK MANAGEMENT Culture WITH CONSIDERABLE FINANCIAL FLEXIBILITY AND CONSERVATIVE PROPERTY CATASTROPHE EXPOSURE PML as Percent of Total Shareholders' Equity As of 1/1/18, Ranked by 1-250 30.0% 20.0% 10.0% 0.0% ACGL RE VR AXS AHL XL LRE 1-100 1-250 Source: Dowling Debt + Preferred Equity to Cap
Slide 12: Accident Year Loss Development
ACCIDENT YEAR LOSS DEVELOPMENT 10 YEAR LOSS RESERVING EXPERIENCE – INITIAL TO ULTIMATE 90.8% 100.0% 86.8% 81.1% 81.1% 90.0% 75.7% 74.2% 80.0% 67.7% 66.0% 65.6% 65.1% 64.7% 64.6% 64.6% 59.5% 59.4% 59.1% 70.0% 57.8% 57.7% 56.7% 56.0% 52.9% 50.1% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 2008 2009 2010
Slide 13: A Strategy That Embraces Alternative Capital Paradigm
A STRATEGY THAT Embraces Alternative Capital Paradigm CAPITAL MARKETS ADD TO EVEREST’S CAPACITY AND INCREASE NET MARGINS 2013 2014 2015 2017 2018 MT LOGAN KILIMANJARO RE LTD. KILIMANJARO RE LTD. KILIMANJARO RE LTD. KILIMANJARO RE LTD. (SERIES 2014 -2) (SERIES 2015-1) (SERIES 2017- 1&2) (SERIES 2018-
Slide 14: Active Capital Management Improves Shareholder Value
ACTIVE CAPITAL MANAGEMENT Improves Shareholder Value BOOK VALUE PER SHARE INCREASES 2.6x SINCE 2006 $204.95 $201.70 Capital Management: $197.45 $178.21 Everest historically $166.75 addresses excess $146.57 12,856 12,908 capital through share $130.96 $115.45 buybacks $112.99 11,152 2,825 2,900 $102
Slide 15: Conservative Leverage and Liquidity
CONSERVATIVE Leverage and Liquidity FIGURES AS OF 6/30/18 Capitalization Liquidity 100% 15.0 90% 32% Corporate 80% 22% Non U.S. 70% 15% Mortgage/ Asset Backed 10.7 7% Equity 60% 6% Government 50% 10.0 5% Cash & Short Term 40% 3% Municipal 7.8 7.7 30% 7.3 7.0 7.1 10% Other 6.5 20% 10% 0% 5.0 2012 201
Slide 16: Strong and Consistent Operating Cash Flows
STRONG AND CONSISTENT Operating Cash Flows ADD TO STRONG LIQUIDITY PROFILE '01 '04 '08 '11 '17 Hurricanes WTC FL Hurricanes Hurr Ike Japan EQ & Thai HIM & Mexico Attack Floods EQs & CA fires GWP $8.0 Cash Flow '05 '08-'09 '12 Hurricane $2.5 KRW Hurricanes Financial Sandy Crisis/ $7.2 $7.0 Recession
Slide 17: Significant Total Return to Shareholders
SIGNIFICANT TOTAL Return to Shareholders 1,442.9% 700.0% Everest 617.7% 600.0% S&P 500 500.0% 400.0% 300.0% 200.0% 173.5% 123.2% 125.7% 107.9% 100.0% 39.1% 38.2% 0.0% 3 Years 5 Years 10 Years Inception to Date Everest Re total return* over S&P 500: 2014-2017 2012-2017 2007-2017 ITD 1 point 15 points
Slide 18: The Everest Franchise—Well Positioned for Success
THE EVEREST FRANCHISE—Well Positioned for Success A BUSINESS MODEL THAT IS NOT EASILY REPLICATED FOCUS ON SHAREHOLDER VALUE LEADING THE MARKET SIGNIFICANT SCALE 11.8% CAGR in Dividend Adjusted BVPS since 1995 40+ years 25 of Market Experience Top Ratings Offices Worldwide A+ A.M. Best & S&P 5.4 Poin
Slide 19: Everest Re Group, Ltd.
EVEREST RE GROUP, LTD. Seon Place, 141 Front Street, 4th Floor, P. O. Box HM 845, Hamilton HM 19, Bermuda