1

NEWS RELEASE

EVEREST RE GROUP, LTD. 

Seon place, 141 Front Street, 4

th

 Floor, Hamilton HM 19, Bermuda

Contacts

Media: Dawn Lauer Investors: Matt Rohrmann

Chief Communications Officer Head of Investor Relations

Everest Global Services, Inc. Everest Global Services, Inc. 

908.300.7670 908.604.7343

Everest Re Group Reports First Quarter 2023 Results

19.5%

1

 GWP Growth and 16.2% Underwriting Income Growth, Led by Record

Reinsurance Growth and Strong Pricing Momentum

14.2% Net Income ROE, 17.2 % Operating ROE 

91.2% Combined Ratio and 87.5% Attritional Combined Ratio

HAMILTON, Bermuda – (BUSINESS WIRE) – May 1, 2023 –

Everest Re Group, Ltd. (“Everest” or the

“Group”) today reported its first quarter 2023 results.

First Quarter 2023 Highlights

•

Strong year-over-year improvements in Net Operating Income of $443 million, and Net Income of $365

million driven by continued underwriting margin improvement

•

14.1% Total Shareholder Return, 14.2% Net Income ROE, and 17.2% Operating Income ROE

•

$3.7 billion in gross written premium (“GWP”) with year-over-year growth of 19.5% in constant dollars

as reported for the Group, 23.2% in constant dollars excluding reinstatements for Reinsurance and 11.5%

in constant dollars for Insurance 

•

Combined ratios of 91.2% for the Group, 90.8% for Reinsurance and 92.4% for Insurance driven by

improved pricing and lower catastrophe losses year-over-year

•

Strong attritional combined ratios of 87.5% for the Group, 85.9% for Reinsurance and 91.7% for

Insurance

•

Pre-tax underwriting income of $273 million, third highest result over past 5 years

•

$110 million of pre-tax catastrophe losses net of estimated recoveries and reinstatement premiums driven

by the Turkey earthquake as well as the New Zealand floods and cyclone.

•

Year -over-year improvement in net investment income of $260 million, driven by stronger fixed income

returns as new money yields remain attractive

•

Strong operating cashflow for the quarter of $1.1 billion versus $846 million in the first quarter 2022

Footnote 1 in header denotes constant currency figure

2

“Everest had a strong start to the year, with first quarter results that delivered significant underwriting profit, a

17.2% operating return on equity and a total shareholder return in excess of 14%,” said Juan C. Andrade, Everest

President & CEO. “We delivered profitable growth across both underwriting franchises, particularly in

reinsurance, where we continued to drive expanding margins. With our industry leading position, ongoing flight

to quality, and relentless execution, we are well equipped to take advantage of market tailwinds. We also

continued to invest in scaling our primary business in a disciplined manner. The insurance division generated an

increased year-over-year underwriting profit by capitalizing on our diversified portfolio and improved pricing

conditions. We advanced many of our strategic objectives this quarter, resulting in improved risk adjusted returns

across the portfolio, and continued to manage natural catastrophe volatility demonstrated by the limited exposure

to the severe weather events in North America during the quarter. We remain focused on bolstering our world

class talent and I am confident in their ability to capitalize on attractive market opportunities in the year ahead.”

Summary of First Quarter 2023 Net Income and Other Items 

•

Net Income of $365 million, equal to $9.31 per diluted share versus first quarter 2022 net income of $298

million, equal to $7.56 per diluted share 

•

Net operating income of $443 million, equal to $11.31 per diluted share versus first quarter 2022 net

operating income of $406 million, equal to $10.31 per diluted share 

•

GAAP combined ratio of 91.2% including 3.7 points of catastrophe losses versus the first quarter 2022

figures of 91.6% including 4.1 points of catastrophe losses 

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

Net income and operating income

Q1

Year to Date

Q1

Year to Date

All values in USD millions except for per share amounts and percentages

2023

2023

2022

2022

Everest Re Group

Net income (loss)

365

365

298

298

Net operating income (loss)

(1)

443

443

406

406

Net income (loss) per diluted common share

9.31

9.31

7.56

7.56

Net operating income (loss) per diluted common share

11.31

11.31

10.31

10.31

Net income (loss) return on average equity (annualized)

14.2%

14.2%

11.9%

11.9%

After-tax operating income (loss) return on average equity (annualized)

17.2%

17.2%

16.2%

16.2%

Notes

(1) Refer to the reconciliation of net income to net operating income found on page 6 of this press release

3

Shareholders' Equity and Book Value per Share

Q1

Year to Date

Q1

Year to Date

All values in USD millions except for per share amounts and percentages

2023

2023

2022

2022

Beginning shareholders' equity

8,441

8,441

10,139

10,139

Net income (loss)

365

365

298

298

Change - unrealized gains (losses) - Fixed inc. investments

249

249

(811)

(811)

Dividends to shareholders

(65)

(65)

(61)

(61)

Purchase of treasury shares

 - 

 - 

(1)

(1)

Other

24

24

(36)

(36)

Ending shareholders' equity

9,014

9,014

9,528

9,528

Common shares outstanding

39.3

39.4

Book value per common share outstanding

229.49

241.52

Less: Unrealized appreciation/depreciation of fixed maturity investments ("URAD")

(37.15)

(14.49)

Adjusted book value per common share outstanding excluding URAD

266.64

256.01

Change in BVPS adjusted for dividends

7.2%

Total Shareholder Return ("TSR") - Annualized

14.1%

Common share dividends paid - last 12 months

6.60

6.20

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 Re Group

Q1

Year to Date

Q1

Year to Date

Year on Year Change

All values in USD millions except for percentages

2023

2023

2022

2022

Q1

Year to Date

Gross written premium

3,743

3,743

3,186

3,186

17.5%

17.5%

Net written premium

3,329

3,329

2,812

2,812

18.4%

18.4%

Loss ratio

63.4%

63.4%

64.1%

64.1%

 (0.7) pts 

 (0.7) pts 

Commission and brokerage ratio

21.3%

21.3%

21.7%

21.7%

 (0.4) pts 

 (0.4) pts 

Other underwriting expenses

6.4%

6.4%

5.8%

5.8%

 0.6 pts 

 0.6 pts 

Combined ratio

91.2%

91.2%

91.6%

91.6%

 (0.4) pts 

 (0.4) pts 

Attritional combined ratio

(1)

87.5%

87.5%

87.4%

87.4%

 0.1 pts 

 0.1 pts 

Pre-tax net catastrophe losses

(2)

110

110

115

115

Pre-tax net Russia/Ukraine losses

 - 

-

 - 

 - 

Pre-tax net prior year reserve development

 - 

-

(1)

(1)

Notes

(1) Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, prior year development, COVID-19 losses, CECL and losses from the

Russia/Ukraine war

(2) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums

4

Reinsurance Segment – Quarterly Highlights

•

Gross written premiums grew 23.2% on a constant dollar basis to $2.64 billion, a new quarterly premium

record for the segment, and broad-based, double-digit growth across every business unit.

•

Growth was driven by 19.4% growth in property pro-rata, 27.5% growth in property Cat, 22.1% in

Casualty pro-rata as a flight to quality continues across various markets.

•

Robust pricing momentum at April 1 renewal continued, with Cat pricing up over 44% in North America

and 26% Internationally, with improved terms/conditions.

•

90-basis point improvement in the attritional loss ratio to 58.0% year over year and an attritional

combined ratio of 85.9% vs 86.2% a year ago.

•

Pre-tax catastrophe losses of $108 million net of estimated recoveries and reinstatement premiums,

compared with $110 million a year ago. Catastrophe losses driven by the Turkey Earthquake as well as

the New Zealand floods and cyclone.

Underwriting information - Reinsurance segment

Q1

Year to Date

Q1

Year to Date

Year on Year Change

All values in USD millions except for percentages

2023

2023

2022

2022

Q1

Year to Date

Gross written premium

2,637

2,637

2,186

2,186

20.6%

20.6%

Net written premium

2,454

2,454

2,081

2,081

17.9%

17.9%

Loss ratio

62.9%

62.9%

64.1%

64.1%

 (1.2) pts 

 (1.2) pts 

Commission and brokerage ratio

25.0%

25.0%

24.9%

24.9%

 0.1 pts 

 0.1 pts 

Other underwriting expenses

2.8%

2.8%

2.4%

2.4%

 0.4 pts 

 0.4 pts 

Combined ratio

90.8%

90.8%

91.4%

91.4%

 (0.6) pts 

 (0.6) pts 

Attritional combined ratio

(1)

85.9%

85.9%

86.2%

86.2%

 (0.3) pts 

 (0.3) pts 

Pre-tax net catastrophe losses

(2)

108

108

110

110

Pre-tax net Russia/Ukraine losses

 - 

-

 - 

 - 

Pre-tax net prior year reserve development

 - 

-

(2)

(2)

Notes

(1) Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, prior year development, COVID-19 losses, CECL and losses from the

Russia/Ukraine war

(2) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums

5

Insurance Segment – Quarterly Highlights

•

Gross written premiums of $1.1 billion, an 11.5% increase year-over-year in constant dollars, led by a

diversified mix of property, marine, energy and other specialty lines. 

•

Strong underwriting profit of $66 million, up12% year-over-year.

•

Lower catastrophe losses in the quarter at $2 million. 

•

Attritional loss ratio of 64.2% slightly up over prior year resulting in attritional combined ratio of 91.7%.

•

The quarter included a one-time current accident-year adjustment of $15 million related to a non-renewed

medical stop loss book.

•

Disciplined expense management of 27.7%, an improvement of 10 basis points over prior year. 

•

Rate accelerated sequentially for the second straight quarter, driven by property and umbrella.

Underwriting information - Insurance segment

Q1

Year to Date

Q1

Year to Date

Year on Year Change

All values in USD millions except for percentages

2023

2023

2022

2022

Q1

Year to Date

Gross written premium

1,106

1,106

1,001

1,001

10.5%

10.5%

Net written premium

875

875

731

731

19.7%

19.7%

Loss ratio

64.7%

64.7%

64.1%

64.1%

 0.6 pts 

 0.6 pts 

Commission and brokerage ratio

11.8%

11.8%

12.5%

12.5%

 (0.7) pts 

 (0.7) pts 

Other underwriting expenses

15.9%

15.9%

15.3%

15.3%

 0.6 pts 

 0.6 pts 

Combined ratio

92.4%

92.4%

91.9%

91.9%

 0.5 pts 

 0.5 pts 

Attritional combined ratio

(1)

91.7%

91.7%

90.9%

90.9%

 0.8 pts 

 0.8 pts 

Pre-tax net catastrophe losses

(2)

2

2

5

5

Pre-tax net Russia/Ukraine losses

 - 

 - 

 - 

 - 

Pre-tax net prior year reserve development

 - 

 - 

1

1

Notes

(1) Attritional combined ratio excludes catastrophe losses, reinstatement premiums, prior year development, Covid-19 losses, CECL, and losses from the

Russian/Ukraine war.

(2) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums

Investments and Shareholders’ Equity as of March 31, 2023 

•

Total invested assets and cash of $31.4 billion versus $29.9 billion on December 31, 2022

•

Shareholders’ equity of $9.0 billion vs. $8.4 billion on December 31, 2022, includes $1.5 billion of

unrealized net losses on AFS fixed maturity investments 

•

Shareholders’ equity excluding unrealized gains (losses) on AFS fixed maturity investments of $10.5

billion versus $10.1 billion on December 31, 2022

•

Book value per share of $229.49 versus $215.54 at December 31, 2022 

•

Book value per share excluding unrealized gains (losses) on AFS fixed maturity investments of $266.64

versus $259.18 at December 31, 2022

•

Common share dividends declared and paid in the quarter of $1.65 per share equal to $65 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

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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 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: RE) 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.everestre.com. 

A conference call discussing the results will be held at 8:00 a.m. Eastern Time on May 2, 2023. The call will be

available on the Internet through the Company’s web site at everestre.com/investors.

Recipients are encouraged to visit the Company’s web site to view supplemental financial information on the

Company’s results. The supplemental information is located at www.everestre.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:

Three Months Ended March 31,

Three Months Ended March 31,

(Dollars in millions, except per share amounts)

2023

2022

2023

2022

(unaudited)

(unaudited)

Per Diluted

Per Diluted

Per Diluted

Per Diluted

Amount

Share

Amount

Share

Amount

Share

Amount

Share

After-tax operating income (loss)

$443

$11.31

$406

$10.31

$443

$11.31

$406

$10.31

After-tax net gains (losses) on investments

$6

$0.14

$(123)

$(3.14)

$6

$0.14

$(123)

$(3.14)

After-tax net foreign exchange income (expense)

$(84)

$(2.14)

$15

$0.39

$(84)

$(2.14)

$15

$0.39

Net income (loss)

$365

$9.31

$298

$7.56

$365

$9.31

$298

$7.56

(Some amounts may not reconcile due to rounding.)

7

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 is 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--

8

EVEREST RE GROUP, LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

Three Months Ended 

March 31,

(Dollars in millions, except per share amounts)

2023

2022

(unaudited)

REVENUES:

Premiums earned 

$3,100

$2,792

Net investment income

260

243

Net gains (losses) on investments:

Credit allowances on fixed maturity securities

(8)

(12)

Gains (losses) from fair value adjustments

4

(137)

Net realized gains (losses) from dispositions

9

(5)

Total net gains (losses) on investments

5

(154)

Other income (expense)

(79)

15

Total revenues

3,286

2,896

CLAIMS AND EXPENSES:

Incurred losses and loss adjustment expenses 

1,966

1,790

Commission, brokerage, taxes and fees

661

605

Other underwriting expenses 

200

161

Corporate expenses

19

14

Interest, fees and bond issue cost amortization expense

32

24

Total claims and expenses

2,878

2,594

INCOME (LOSS) BEFORE TAXES

408

302

Income tax expense (benefit)

43

4

NET INCOME (LOSS)

$365

$298

Other comprehensive income (loss), net of tax:

Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period

246

(815)

Reclassification adjustment for realized losses (gains) included in net income (loss)

3

4

Total URA(D) on securities arising during the period

249

(811)

Foreign currency translation adjustments

31

(34)

Reclassification adjustment for amortization of net (gain) loss included in net income (loss)

-

1

Total benefit plan net gain (loss) for the period

-

1

Total other comprehensive income (loss), net of tax

280

(844)

COMPREHENSIVE INCOME (LOSS)

$645

$(547)

EARNINGS PER COMMON SHARE:

Basic

$9.31

$7.57

Diluted

9.31

7.56

9

EVEREST RE GROUP, LTD.

CONSOLIDATED BALANCE SHEETS

March 31,

(Dollars and share amounts in millions, except par value per share)

2023 

2022 

(unaudited)

ASSETS:

Fixed maturities - available for sale, at fair value

$23,560

$22,236

(amortized cost: 2023, $25,247; 2022, $24,191, credit allowances: 2023, ($62); 2022, ($54))

Fixed maturities - held to maturity, at amortized cost

(fair value: 2023, $814; 2022, $821, net of credit allowances: 2023, ($9); 2022, ($9))

825

839

Equity securities, at fair value

250

281

Other invested assets

4,156

4,085

Short-term investments 

1,034

1,032

Cash

1,610

1,398

Total investments and cash

31,435

29,872

Accrued investment income

235

217

Premiums receivable (net of credit allowances: 2023, ($30); 2022, ($29))

3,922

3,619

Reinsurance paid loss recoverables (net of credit allowances: 2023, ($24); 2022, ($23))

182

136

Reinsurance unpaid loss recoverables 

2,125

2,105

Funds held by reinsureds

1,071

1,056

Deferred acquisition costs

1,011

962

Prepaid reinsurance premiums

611

610

Income tax asset, net

387

459

Other assets (net of credit allowances: 2023, ($7); 2022, ($5))

860

930

TOTAL ASSETS

$41,839

$39,966

LIABILITIES:

Reserve for losses and loss adjustment expenses

22,878

22,065

Future policy benefit reserve

29

29

Unearned premium reserve

5,418

5,147

Funds held under reinsurance treaties

10

13

Other net payable to reinsurers

618

567

Losses in course of payment

123

74

Senior notes

2,348

2,347

Long term notes

218

218

Borrowings from FHLB

519

519

Accrued interest on debt and borrowings

41

19

Unsettled securities payable

201

1

Other liabilities

422

526

Total liabilities

32,825

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) 70.0

and (2022) 69.9 outstanding before treasury shares

1

1

Additional paid-in capital

2,295

2,302

Accumulated other comprehensive income (loss), net of deferred income tax expense

(benefit) of ($218) at 2023 and ($250) at 2022

(1,716)

(1,996)

Treasury shares, at cost: 30.8 shares (2023) and 30.8 shares (2022)

(3,908)

(3,908)

Retained earnings

12,342

12,042

Total shareholders' equity 

9,014

8,441

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$41,839

$39,966

10

EVEREST RE GROUP, LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS 

Three Months Ended 

March 31,

(Dollars in millions)

2023

2022

(unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)

$365

$298

Adjustments to reconcile net income to net cash provided by operating activities:

Decrease (increase) in premiums receivable

(259)

(14)

Decrease (increase) in funds held by reinsureds, net

(17)

(67)

Decrease (increase) in reinsurance recoverables

7

(126)

Decrease (increase) in income taxes

41

1

Decrease (increase) in prepaid reinsurance premiums

28

(7)

Increase (decrease) in reserve for losses and loss adjustment expenses

681

632

Increase (decrease) in future policy benefit reserve

-

(1)

Increase (decrease) in unearned premiums

226

4

Increase (decrease) in other net payable to reinsurers

17

46

Increase (decrease) in losses in course of payment

47

(125)

Change in equity adjustments in limited partnerships

(5)

(98)

Distribution of limited partnership income

48

71

Change in other assets and liabilities, net

(121)

47

Non-cash compensation expense 

12

12

Amortization of bond premium (accrual of bond discount)

(1)

19

Net (gains) losses on investments

(5)

154

Net cash provided by (used in) operating activities

1,064

846

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from fixed maturities matured/called/repaid - available for sale

562

849

Proceeds from fixed maturities sold - available for sale

72

419

Proceeds from fixed maturities matured/called/repaid - held to maturity

28

-

Proceeds from equity securities sold

46

90

Distributions from other invested assets

137

163

Cost of fixed maturities acquired - available for sale

(1,613)

(2,011)

Cost of fixed maturities acquired - held to maturity

(11)

-

Cost of equity securities acquired

(1)

(195)

Cost of other invested assets acquired

(242)

(137)

Net change in short-term investments

4

355

Net change in unsettled securities transactions

267

46

Net cash provided by (used in) investing activities

(752)

(421)

CASH FLOWS FROM FINANCING ACTIVITIES:

Common shares issued (redeemed) during the period for share-based compensation, net of expense

(19)

(14)

Purchase of treasury shares

-

(1)

Dividends paid to shareholders

(65)

(61)

Cost of shares withheld on settlements of share-based compensation awards

(19)

(17)

Net cash provided by (used in) financing activities

(103)

(94)

EFFECT OF EXCHANGE RATE CHANGES ON CASH

3

6

Net increase (decrease) in cash

212

337

Cash, beginning of period

1,398

1,441

Cash, end of period

$1,610

$1,778

SUPPLEMENTAL CASH FLOW INFORMATION:

Income taxes paid (recovered)

$2

$3

Interest paid 

10

2