Everest Reports Second Quarter 2024 Results

Rhea-AI Summary

Everest Group (NYSE: EG) announced its Q2 2024 results, highlighting a net income of $724 million and operating income of $730 million, driven by strong underwriting and investment performance. The company reported a 19.7% ROE for operating income and 20.0% total shareholder return.

Gross written premiums reached $4.7 billion, marking a 12.8% YoY growth. The combined ratio for the group stood at 90.3%, with underwriting income of $358 million.

The reinsurance segment saw a 16.5% increase in gross written premiums and reported a pre-tax underwriting income of $303 million, while the insurance segment achieved a 5.8% increase in gross written premiums, with a pre-tax underwriting income of $54 million.

Net investment income hit a record $528 million, a significant rise from $357 million in Q2 2023. Operating cash flow was strong at $1.3 billion.

Shareholder equity rose to $14.2 billion, and book value per share increased to $327.68.

Positive

• Net income of $724 million.
• Operating income of $730 million.
• 19.7% ROE for operating income.
• 20.0% total shareholder return.
• Gross written premiums of $4.7 billion, up 12.8% YoY.
• Combined ratio of 90.3%.
• Pre-tax underwriting income of $358 million.
• Net investment income of $528 million.
• Strong operating cash flow of $1.3 billion.
• Shareholder equity increased to $14.2 billion.
• Book value per share increased to $327.68.

Negative

• None.

Insights

Financial Analyst

Everest Group's Q2 2024 results demonstrate robust financial performance and strategic growth. The company reported $724 million in net income and $730 million in operating income, with an impressive operating income ROE of 19.7%. These figures underscore Everest's strong market position and effective execution of its business strategy.

Key highlights include:

• Gross written premiums grew by 12.8% to $4.7 billion, indicating strong market demand and successful expansion efforts.
• The combined ratio of 90.3% reflects solid underwriting discipline, despite a 4.1% impact from catastrophe losses.
• Net investment income reached a record $528 million, a significant increase from $357 million in the prior year, demonstrating effective asset management.

The Reinsurance segment showed particularly strong growth, with gross written premiums up 16.5% on a constant dollar basis. This growth was broad-based across geographies and lines, highlighting Everest's strong market position in reinsurance.

The Insurance segment also saw growth, with gross written premiums up 5.8% in constant dollars. The company's strategic shift towards higher-margin business lines is evident in the 31.1% increase in Property/Short Tail and 26.0% growth in Other Specialty lines.

Everest's strong capital position, with shareholders' equity increasing to $14.2 billion, provides a solid foundation for future growth and potential market opportunities.

Insurance Industry Expert

Everest's Q2 2024 results reveal a company adeptly navigating a complex insurance landscape. The 19.7% Operating Income ROE is particularly impressive, outperforming many industry peers and indicating efficient capital utilization.

The company's strategic focus on high-margin business lines is paying off, especially in the Reinsurance segment. The 16.5% growth in this segment, driven by increases in Property Pro-Rata (31.4%) and Property Catastrophe XOL (25.0%), suggests Everest is capitalizing on hardening market conditions in these areas.

In the Insurance segment, the shift towards Property/Short Tail and Other Specialty lines, coupled with reductions in Accident and Health and Workers' Compensation, indicates a disciplined approach to portfolio management. This strategy aims to optimize the risk-return profile but may pose challenges if market conditions shift unexpectedly.

The improvement in attritional loss ratios in both segments (Reinsurance down 60 basis points to 57.0%, Insurance down 70 basis points to 63.7%) is a positive sign of underwriting discipline. However, the increase in catastrophe losses ($135 million vs $27 million in Q2 2023) highlights the ongoing volatility in this area.

Everest's expansion into new markets (Australia, Colombia and Mexico) demonstrates a commitment to geographical diversification, which could provide new growth avenues and risk diversification benefits in the long term.

Overall, Everest's results reflect a company well-positioned in the current market, with a clear strategy for growth and profitability. However, investors should monitor how the company manages increased catastrophe exposure and the potential impact of its shifting business mix on long-term performance.

Net Income of $724 million and Operating Income of $730 million

Operating Income ROE of 19.7% and TSR¹ of 20.0%

$358 million of Underwriting Income and Combined Ratio of 90.3%

HAMILTON, Bermuda--(BUSINESS WIRE)-- Everest Group, Ltd. (NYSE: EG), a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions, today reported its second quarter 2024 results.

Second Quarter 2024 Highlights

• Total Shareholder Return of 20.0% annualized; 19.6% Net Income ROE and 19.7% Operating Income ROE
• Net Income of $724 million; Operating Income of $730 million driven by attritional underwriting margin improvement and strong net investment income generation
• $4.7 billion in gross written premium with year-over-year growth of 12.8%² for the Group, 16.5%² for Reinsurance, and 5.8%² for Insurance
• Combined ratios of 90.3% for the Group, 88.9% for Reinsurance and 94.4% for Insurance
• Attritional combined ratios of 86.6% for the Group, 84.4% for Reinsurance and 92.8% for Insurance
• Pre-tax underwriting income of $358 million for the Group, $303 million for Reinsurance, and $54 million for Insurance
• $135 million of pre-tax catastrophe losses net of recoveries and reinstatement premiums versus $27 million in the prior year
• Net investment income improved to $528 million versus $357 million in the prior year second quarter, a company record, driven by a larger asset base as well as strong core fixed income and alternative investment returns
• Strong operating cashflow for the quarter of $1.3 billion versus $1.1 billion in the second quarter 2023
  
  ^{Footnote 1 denotes annualized figure; represents Total Shareholder Return or "TSR"
  Footnote 2 denotes constant currency figure and excludes reinstatement premiums}

“Everest produced another strong quarter and an excellent first half of the year, with second quarter results delivering an annualized Total Shareholder Return and operating ROE of 20%, driven by solid underwriting and net investment income,” said Juan C. Andrade, Everest President and CEO. “The fundamentals of our business are robust, creating significant momentum as we expand in areas with the strongest profit trajectory, while remaining focused on disciplined underwriting and risk selection. Our leading Reinsurance business continues to achieve excellent risk adjusted returns, again evidenced by our success through the most recent renewals. We made progress advancing our primary insurance strategy in key global markets, investing in, and expanding our platform with exceptional talent and capabilities to capitalize on market opportunities. As we move through the second half of 2024, we are capitalizing on this momentum, focused on achieving our primary objective of consistently generating industry leading returns.”

Summary of Second Quarter 2024 Net Income and Other Items

• Net income of $724 million, equal to $16.70 per diluted share versus second quarter 2023 net income of $670 million, equal to $16.26 per diluted share
• Net operating income of $730 million, equal to $16.85 per diluted share versus second quarter 2023 net operating income of $627 million, equal to $15.21 per diluted share
• GAAP combined ratio of 90.3%, including 4.1 points of catastrophe losses, versus the second quarter 2023 figure of 87.7%, including 0.8 points of catastrophe losses

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

Net income and operating income		Q2		Year to Date		Q2		Year to Date
All values in USD millions except for per share amounts and percentages		2024		2024		2023		2023
Everest Group
Net income (loss)		724		1,457		670		1,035
Net operating income (loss) (1)		730		1,439		627		1,070
Net income (loss) per diluted common share		16.70		33.57		16.26		25.74
Net operating income (loss) per diluted common share		16.85		33.17		15.21		26.61
Net income (loss) return on average equity (annualized)		19.6%		20.1%		23.3%		18.3%
After-tax operating income (loss) return on average equity (annualized)		19.7%		19.8%		21.8%		18.9%
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		Q2		Year to Date		Q2		Year to Date
All values in USD millions except for per share amounts and percentages		2024		2024		2023		2023
Beginning shareholders' equity		13,628		13,202		9,014		8,441
Net income (loss)		724		1,457		670		1,035
Change - unrealized gains (losses) - Fixed inc. investments		(60)		(213)		(167)		82
Dividends to shareholders		(86)		(163)		(72)		(136)
Purchase of treasury shares		(65)		(100)		—		—
Public equity offering of shares		—		—		1,445		1,445
Other		41		(1)		11		36
Ending shareholders' equity		14,182		14,182		10,902		10,902
Common shares outstanding				43.3				43.4
Book value per common share outstanding				327.68				251.17
Less: Unrealized appreciation/depreciation of fixed maturity investments ("URAD")				(21.62)				(37.47)
Adjusted book value per common share outstanding excluding URAD				349.30				288.64
Change in BVPS adjusted for dividends				8.9%				18.1%
Total Shareholder Return ("TSR") - Annualized				20.0%				25.3%
Common share dividends paid - last 12 months				7.25				6.60

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		Q2		Year to Date		Q2		Year to Date		Year on Year Change
All values in USD millions except for percentages		2024		2024		2023		2023		Q2		Year to Date
Gross written premium		4,725		9,136		4,180		7,923		13.0%		15.3%
Net written premium		4,084		7,984		3,674		7,003		11.2%		14.0%
Loss Ratio:
Current year		58.5%		58.7%		59.5%		59.6%		(1.0) pts		(0.9) pts
Prior year		—%		—%		—%		—%		— pts		— pts
Catastrophe		4.1%		3.2%		0.8%		2.2%		3.3 pts		1.0 pts
Total Loss ratio		62.6%		61.9%		60.3%		61.8%		2.3 pts		0.1 pts
Commission and brokerage ratio		21.4%		21.4%		21.1%		21.2%		0.3 pts		0.2 pts
Other underwriting expenses		6.3%		6.2%		6.3%		6.4%		— pts		(0.1) pts
Combined ratio		90.3%		89.6%		87.7%		89.4%		2.6 pts		0.2 pts
Attritional combined ratio (1)		86.6%		86.5%		86.8%		87.2%		(0.2) pts		(0.7) pts
Pre-tax net catastrophe losses (2)		135		220		27		137
Pre-tax net unfavorable (favorable) prior year reserve development		—		—		—		—
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

Reinsurance Segment – Quarterly Highlights

• Gross written premiums grew 16.5% on a constant dollar basis and excluding reinstatement premiums, to approximately $3.2 billion. Growth was broad-based across geographies and lines as we continue to execute with precision and leverage our leading franchise.
• Growth was driven by a 31.4% increase in Property Pro-Rata, 25.0% in Property Catastrophe XOL, and 19.6% in Casualty Pro-Rata (driven by increased rate), when adjusting for reinstatement premiums
• Attritional loss ratio improved 60 basis points over last year to 57.0%, while the attritional combined ratio improved 30 basis points to 84.4% versus a year ago.
• Pre-tax catastrophe losses were $120 million net of estimated recoveries and reinstatement premiums, driven primarily by a number of mid-sized international events.
• Risk-adjusted returns remain very attractive, particularly in property and specialty lines.

Underwriting information - Reinsurance segment		Q2		Year to Date		Q2		Year to Date		Year on Year Change
All values in USD millions except for percentages		2024		2024		2023		2023		Q2		Year to Date
Gross written premium		3,209		6,385		2,747		5,368		16.8%		18.9%
Net written premium		3,033		5,975		2,621		5,059		15.7%		18.1%
Loss Ratio:
Current year		56.7%		56.9%		57.6%		57.7%		(0.9) pts		(0.8) pts
Prior year		—%		—%		—%		—%		— pts		— pts
Catastrophe		5.0%		4.0%		1.2%		3.1%		3.8 pts		0.9 pts
Total Loss ratio		61.7%		60.9%		58.8%		60.8%		2.9 pts		0.1 pts
Commission and brokerage ratio		24.6%		24.6%		24.5%		24.7%		0.1 pts		(0.1) pts
Other underwriting expenses		2.6%		2.6%		2.6%		2.7%		— pts		(0.1) pts
Combined ratio		88.9%		88.1%		85.8%		88.2%		3.1 pts		(0.1) pts
Attritional combined ratio (1)		84.4%		84.4%		84.7%		85.3%		(0.3) pts		(0.9) pts
Pre-tax net catastrophe losses (2)		120		200		27		135
Pre-tax net prior year reserve development		—		—		—		—
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

Insurance Segment – Quarterly Highlights

• Gross written premiums rose to $1.5 billion, a 5.8% increase year-over-year in constant dollars. Our International business continued to gain traction, and we received regulatory approval for new operations in Australia, Colombia, and Mexico.
• As we continue to proactively change our mix of business, growth was driven by a 31.1% increase in Property/Short Tail and 26.0% in Other Specialty, led by growth in aviation, energy, surety, and construction. Growth was partially offset by a decrease of 37.4% in Accident and Health and 18.0% in Workers' Compensation as we continue to focus on lines of business with better expected margins.
• Attritional loss ratio improved 70 basis points over last year to 63.7%.
• Pre-tax catastrophe losses were $15 million, net of estimated recoveries and reinstatement premiums, a modest increase over the prior year quarter, which benefited from benign catastrophe losses.
• Pricing continues to exceed loss trend in aggregate.
• There was a meaningful acceleration in pricing across North American long-tail lines (excluding financial lines).

Underwriting information - Insurance segment		Q2		Year to Date		Q2		Year to Date		Year on Year Change
All values in USD millions except for percentages		2024		2024		2023		2023		Q2		Year to Date
Gross written premium		1,515		2,752		1,433		2,555		5.7%		7.7%
Net written premium		1,051		2,009		1,053		1,944		(0.2)%		3.3%
Loss Ratio:
Current year		63.7%		63.8%		64.4%		64.4%		(0.7) pts		(0.6) pts
Prior year		—%		—%		—%		—%		— pts		— pts
Catastrophe		1.5%		1.0%		—%		0.1%		1.5 pts		0.9 pts
Total Loss ratio		65.3%		64.9%		64.4%		64.5%		0.9 pts		0.4 pts
Commission and brokerage ratio		12.2%		12.1%		12.1%		12.0%		0.1 pts		0.1 pts
Other underwriting expenses		16.9%		16.7%		16.2%		15.9%		0.7 pts		0.8 pts
Combined ratio		94.4%		93.7%		92.6%		92.4%		1.8 pts		1.3 pts
Attritional combined ratio (1)		92.8%		92.7%		92.6%		92.3%		0.2 pts		0.4 pts
Pre-tax net catastrophe losses (2)		15		20		—		2
Pre-tax net prior year reserve development		—		—		—		—
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 June 30, 2024

• Total invested assets and cash of $39.1 billion versus $37.1 billion on December 31, 2023
• Shareholders’ equity of $14.2 billion vs. $13.2 billion on December 31, 2023, including $936 million of unrealized net losses on AFS fixed maturity investments
• Shareholders’ equity excluding unrealized gains (losses) on AFS fixed maturity investments of $15.1 billion versus $13.9 billion on December 31, 2023
• Book value per share of $327.68 versus $304.29 at December 31, 2023
• Book value per share excluding unrealized gains (losses) on AFS fixed maturity investments of $349.30 versus $320.95 at December 31, 2023
• Common share repurchases of $65.0 million during the quarter, representing 173,718 shares at an average price of $374.17 per share
• Common share dividends declared and paid in the quarter of $2.00 per share equal to $86 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 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, pandemic, 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 August 1, 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 June 30,														Six Months Ended June 30,
		2024								2023						2024								2023
		(unaudited)														(unaudited)
		Amount				Per Diluted Share				Amount			Per Diluted Share			Amount				Per Diluted Share				Amount				Per Diluted Share
After-tax net operating income (loss)		$	730			$	16.85			$	627		$	15.21		$	1,439			$	33.17			$	1,070			$	26.61
After-tax net gains (losses) on investments			(14	)			(0.32	)			4			0.11			(20	)			(0.45	)			10				0.25
After-tax net foreign exchange income (expense)			7				0.17				39			0.94			37				0.86				(45	)			(1.12	)
Net income (loss)		$	724			$	16.70			$	670		$	16.26		$	1,457			$	33.57			$	1,035			$	25.74
(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 June 30,								Six Months Ended June 30,
(In millions of U.S. dollars, except per share amounts)		2024				2023				2024				2023
		(unaudited)								(unaudited)
REVENUES:
Premiums earned		$	3,693			$	3,251			$	7,345			$	6,352
Net investment income			528				357				985				617
Net gains (losses) on investments			(17	)			5				(24	)			10
Other income (expense)			23				38				54				(42	)
Total revenues			4,227				3,650				8,360				6,936
CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses			2,311				1,960				4,548				3,927
Commission, brokerage, taxes and fees			790				686				1,571				1,347
Other underwriting expenses			234				205				458				405
Corporate expenses			22				17				44				36
Interest, fees and bond issue cost amortization expense			37				33				75				65
Total claims and expenses			3,395				2,901				6,696				5,779
INCOME (LOSS) BEFORE TAXES			832				750				1,664				1,157
Income tax expense (benefit)			108				80				207				122
NET INCOME (LOSS)		$	724			$	670			$	1,457			$	1,035
Other comprehensive income (loss), net of tax:
Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period			(70	)			(169	)			(227	)			77
Reclassification adjustment for realized losses (gains) included in net income (loss)			9				2				14				5
Total URA(D) on securities arising during the period			(60	)			(167	)			(213	)			82
Foreign currency translation adjustments			—				(1	)			(38	)			30
Reclassification adjustment for amortization of net (gain) loss included in net income (loss)			24				—				25				1
Total benefit plan net gain (loss) for the period			24				—				25				1
Total other comprehensive income (loss), net of tax			(36	)			(168	)			(227	)			113
COMPREHENSIVE INCOME (LOSS)		$	688			$	502			$	1,230			$	1,148
EARNINGS PER COMMON SHARE:
Basic		$	16.70			$	16.26			$	33.57			$	25.74
Diluted			16.70				16.26				33.57				25.74

EVEREST GROUP, LTD.
CONSOLIDATED BALANCE SHEETS
		June 30,				December 31,
(In millions of U.S. dollars, except par value per share)		2024				2023
		(unaudited)
ASSETS:
Fixed maturities - available for sale, at fair value
(amortized cost: 2024, $30,134; 2023, $28,568, credit allowances: 2024, $(42); 2023, $(48))		$	29,031			$	27,740
Fixed maturities - held to maturity, at amortized cost
(fair value: 2024, $788; 2023, $854, net of credit allowances: 2024, $(8); 2023, $(8))			787				855
Equity securities, at fair value			219				188
Other invested assets			4,994				4,794
Short-term investments			2,464				2,127
Cash			1,570				1,437
Total investments and cash			39,065				37,142
Accrued investment income			360				324
Premiums receivable (net of credit allowances: 2024, $(45); 2023, $(41))			5,403				4,768
Reinsurance paid loss recoverables (net of credit allowances: 2024, $(29); 2023, $(26))			254				164
Reinsurance unpaid loss recoverables			2,151				2,098
Funds held by reinsureds			1,189				1,135
Deferred acquisition costs			1,422				1,247
Prepaid reinsurance premiums			806				713
Income tax asset, net			927				868
Other assets (net of credit allowances: 2024, $(9); 2023, $(9))			983				941
TOTAL ASSETS		$	52,560			$	49,399
LIABILITIES:
Reserve for losses and loss adjustment expenses			25,853				24,604
Unearned premium reserve			7,313				6,622
Funds held under reinsurance treaties			13				24
Amounts due to reinsurers			869				650
Losses in course of payment			289				171
Senior notes			2,349				2,349
Long-term notes			218				218
Borrowings from FHLB			819				819
Accrued interest on debt and borrowings			22				22
Unsettled securities payable			175				137
Other liabilities			458				582
Total liabilities			38,378				36,197
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; (2024) 74.3 and (2023) 74.2
outstanding before treasury shares			1				1
Additional paid-in capital			3,785				3,773
Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit)
of $(162) at 2024 and $(99) at 2023			(1,160	)			(934	)
Treasury shares, at cost; 31.0 shares (2024) and 30.8 shares (2023)			(4,008	)			(3,908	)
Retained earnings			15,565				14,270
Total shareholders' equity			14,182				13,202
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	52,560			$	49,399

EVEREST GROUP, LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
		Six Months Ended June 30,
(In millions of U.S. dollars)		2024				2023
		(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)		$	1,457			$	1,035
Adjustments to reconcile net income to net cash provided by operating activities:
Decrease (increase) in premiums receivable			(685	)			(584	)
Decrease (increase) in funds held by reinsureds, net			(66	)			(5	)
Decrease (increase) in reinsurance recoverables			(236	)			(21	)
Decrease (increase) in income taxes			4				56
Decrease (increase) in prepaid reinsurance premiums			(130	)			(40	)
Increase (decrease) in reserve for losses and loss adjustment expenses			1,388				1,142
Increase (decrease) in unearned premiums			744				732
Increase (decrease) in amounts due to reinsurers			258				63
Increase (decrease) in losses in course of payment			122				75
Change in equity adjustments in limited partnerships			(177	)			(56	)
Distribution of limited partnership income			60				49
Change in other assets and liabilities, net			(292	)			(293	)
Non-cash compensation expense			33				25
Amortization of bond premium (accrual of bond discount)			(65	)			(11	)
Net (gains) losses on investments			24				(10	)
Net cash provided by (used in) operating activities			2,439				2,158
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from fixed maturities matured/called/repaid - available for sale			1,707				1,137
Proceeds from fixed maturities sold - available for sale			1,085				168
Proceeds from fixed maturities matured/called/repaid - held to maturity			109				61
Proceeds from equity securities sold			15				46
Distributions from other invested assets			209				133
Cost of fixed maturities acquired - available for sale			(4,475	)			(3,396	)
Cost of fixed maturities acquired - held to maturity			(36	)			(15	)
Cost of equity securities acquired			(35	)			(3	)
Cost of other invested assets acquired			(314	)			(298	)
Net change in short-term investments			(299	)			(625	)
Net change in unsettled securities transactions			18				41
Net cash provided by (used in) investing activities			(2,016	)			(2,752	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Common shares issued (redeemed) during the period for share-based compensation, net of expense			(21	)			(19	)
Proceeds from public offering of common shares			—				1,445
Purchase of treasury shares			(100	)			—
Dividends paid to shareholders			(163	)			(136	)
Cost of shares withheld on settlements of share-based compensation awards			(21	)			(20	)
Net cash provided by (used in) financing activities			(305	)			1,269
EFFECT OF EXCHANGE RATE CHANGES ON CASH			14				(7	)
Net increase (decrease) in cash			133				668
Cash, beginning of period			1,437				1,398
Cash, end of period		$	1,570			$	2,067
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid (recovered)		$	203			$	73
Interest paid			74				64
NON-CASH TRANSACTIONS:
Non-cash limited partnership distribution			23				—

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240731807366/en/

Media: Dawn Lauer

Chief Communications Officer

908.300.7670

Investors: Matt Rohrmann

Head of Investor Relations

908.604.7343

Source: Everest Group, Ltd.

FAQ

What were Everest Group's net and operating incomes for Q2 2024?

Everest Group reported a net income of $724 million and an operating income of $730 million for Q2 2024.

How much did Everest Group's gross written premiums grow in Q2 2024?

Gross written premiums grew by 12.8% year-over-year, reaching $4.7 billion.

What was Everest Group's combined ratio for Q2 2024?

Everest Group's combined ratio for Q2 2024 was 90.3%.

How much was Everest Group's net investment income in Q2 2024?

Net investment income for Everest Group in Q2 2024 was $528 million.

What was the total shareholder return (TSR) for Everest Group in Q2 2024?

The total shareholder return (TSR) for Everest Group in Q2 2024 was 20.0%.

What is Everest Group's book value per share as of Q2 2024?

Everest Group's book value per share as of Q2 2024 was $327.68.