Everest Group Ltd (EG, Financial), a global underwriting leader, released its third quarter 2023 results on October 25, 2023. The company reported a net income of $678 million and an operating income of $613 million, driven by continued underwriting margin improvement and strong net investment income generation. The company also reported a 21.2% Net Income ROE and 19.2% Operating Income ROE.
Financial Highlights
EG reported $4.4 billion in gross written premium, marking a year-over-year growth of 23.4%. The company's combined ratios stood at 91.4% for the Group, 91.0% for Reinsurance, and 92.6% for Insurance, driven by improved pricing and lower catastrophe losses year-over-year. The attritional combined ratios were 86.5% for the Group, 84.9% for Reinsurance, and 91.0% for Insurance.
EG's pre-tax underwriting income was $301 million, a significant improvement from a pre-tax underwriting loss of $367 million in the prior year. The company also reported $170 million of pre-tax catastrophe losses net of recoveries and reinstatement premiums, a decrease from $730 million in the prior year. Net investment income improved to $406 million, driven by strong fixed income and alternative investment returns.
Company's Performance
Everest President & CEO Juan C. Andrade commented on the company's performance, stating,
Everest’s third quarter performance was excellent. We delivered outstanding returns including a near 20% operating return on equity and an annualized 25% total shareholder return. We are leaning into the hard reinsurance market, where favorable conditions and the global flight to quality persist. As a lead market and preferred partner, we are well-positioned for the upcoming January renewals."
Summary of Third Quarter 2023 Net Income and Other Items
EG reported a net income of $678 million, equal to $15.63 per diluted share, a significant improvement from a net loss of $319 million, equal to $(8.22) per diluted share, in the third quarter of 2022. The company's operating income was $613 million, equal to $14.14 per diluted share, compared to a net operating loss of $205 million, equal to $(5.28) per diluted share, in the third quarter of 2022.
Investments and Shareholders’ Equity as of September 30, 2023
As of September 30, 2023, EG had total invested assets and cash of $34.6 billion, up from $29.9 billion on December 31, 2022. The company's shareholders’ equity stood at $11.2 billion, compared to $8.4 billion on December 31, 2022. The book value per share was $258.71, up from $215.54 at the end of 2022.
Explore the complete 8-K earnings release (here) from Everest Group Ltd for further details.
