Everest Group (EG) Q3 2024 earnings summary

Executive summary

• Achieved strong operating and investment income, resulting in a 19.4% annualized total shareholder return and 18.7% annualized operating ROE year to date, with net income for Q3 2024 at $509 million and net operating income at $630 million.

• Maintained disciplined underwriting and prudent risk management, with portfolio shifts toward property and specialty lines and international expansion, while exercising caution in U.S. casualty.

• Book value per share rose to $356.77, up from $304.29 at year-end 2023, and shareholders' equity increased to $15.3 billion.

• Combined ratio for the group was 93.1%, with attritional combined ratio at 85.8%, impacted by elevated catastrophe losses.

• Net investment income improved to $496 million for Q3, up from $406 million in Q3 2023.

Financial highlights

• Gross written premiums for Q3 reached $4.4 billion, up 0.8% year-over-year; nine-month gross written premiums totaled $13.6 billion.

• Net operating income for 3Q24 YTD was $2.07 billion, with net income at $1.97 billion; net income per diluted share was $11.80, and net operating income per diluted share was $14.62.

• Combined ratio for Q3 was 93.1%, with a 50 bps improvement in attritional loss ratio to 58.5%.

• Catastrophe losses for Q3 were $279 million, contributing 7.9 points to the combined ratio.

• Operating cash flow for the quarter was $1.7 billion, with total invested assets and cash at $42.1 billion.

Outlook and guidance

• Management expects pre-tax net catastrophe loss from Hurricane Milton in Q4 2024 to be $300–$400 million, based on an industry loss estimate of $25–$35 billion.

• Targeting a group combined ratio of 89–91% and total shareholder return above 17% for 2024–2026.

• Insurance segment combined ratio guidance for 2H 2025 remains at 92%, inclusive of a catastrophe load.

• Bermuda entities will be subject to a new 15% corporate income tax starting in 2025.

• Continued focus on scaling international insurance operations and shifting portfolio toward property and specialty lines.