Everest Group (EG) Q3 2024 earnings summary

Executive summary

• Achieved strong operating and investment results, with Q3 2024 net income of $509 million and net operating income of $630 million, driving a 19.4% annualized total shareholder return and book value per share rising to $356.77.

• Maintained disciplined underwriting and risk management amid elevated catastrophe losses, with a group combined ratio of 93.1% and attritional combined ratio of 85.8%.

• Reinsurance segment delivered strong results, with gross written premiums up 1.7% and significant growth in property pro rata and catastrophe XOL lines.

• Insurance segment saw a 2.1% decrease in gross written premiums due to intentional pullback in North American casualty, offset by double-digit growth in international and specialty lines.

• Shareholders' equity increased to $15.3 billion, supported by net income, investment gains, and share repurchases.

Financial highlights

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

• Net investment income for Q3 was $496 million, up from $406 million in Q3 2023; nine-month net investment income totaled $1.5 billion.

• Net income per diluted share was $11.80; net operating income per diluted share was $14.62.

• Book value per share rose to $356.77 at September 30, 2024, up from $304.29 at year-end 2023.

• Operating cash flow for Q3 was $1.7 billion; nine-month operating cash flow reached $4.2 billion.

Outlook and guidance

• Management expects Q4 2024 to be impacted by Hurricane Milton, with estimated pre-tax net catastrophe losses of $300–$400 million.

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

• Reinsurance and insurance segments guided to combined ratios in the 89–92% range, with investment returns expected at 5–6%.

• Property catastrophe pricing expected to increase 5–10% at January 1 renewals in both U.S. and Europe.

• Continued focus on scaling international insurance operations and prudent risk selection.