Everest Group (EG) Q1 2022 earnings summary

Executive summary

• Q1 2022 net operating income was $405.8M, or $10.31 per diluted share; net income was $297.8M, or $7.56 per diluted share.

• Gross written premiums grew 8.7% YoY to $3.19B; the consolidated combined ratio improved to 91.6% from 98.1%.

• Underwriting results included $235M of pre-tax income and $115M of net catastrophe losses; pre-tax net investment income was $243M.

Financial highlights

• Net income declined to $297.8M from $341.9M YoY, while net operating income rose to $405.8M from $260.2M.

• Premiums earned were $2.79B vs. $2.39B YoY; net investment income was $242.8M vs. $260.4M.

• Operating cash flow was $846M vs. $904M in Q1 2021.

• Total invested assets and cash were $29.3B at March 31, 2022, down from $29.7B at year-end 2021.

Outlook and guidance

• Rate increases remained solid and above loss trend in the Insurance segment.

• January 1 reinsurance renewals emphasized targeted class growth and property portfolio optimization to reduce catastrophe volatility and improve returns.