Everest Group Ltd. Q3 FY2024 earnings call

• Delivered successful quarter with strong operating income from underwriting and investment income. Annualized total shareholder return 19.4%, operating return on equity 18.7%. - Reinsurance segment excelled with growth in property and specialty, expected pricing to firm for January renewals. - Insurance segment diversified portfolio, grew in short-tail and specialty lines, cautious in certain US casualty lines. - Investment portfolio outperformed, net investment income $496M in Q3.

Reinsurance: Gross written premiums grew 1.7% in constant dollars. Property Pro Rata and Property Cat XOL grew 19% and 15% respectively. Attritional loss ratio improved 60 basis points to 56.9%, attritional combined ratio improved 140 basis points to 83.5%. Written premium mix shifted to 56% property and 44% casualty. Insurance: Gross written premiums decreased ~2% to $1.2 billion. North America saw growth in retail property and specialty lines, while casualty lines were reduced. International business grew double digits. Attritional loss ratio 63.3%, combined ratio 97.1% including 4.2 points of CAT losses.

• Combined ratio for insurance expected to be in 93%-94% range, with confidence in reaching 92% in back half of 2025. - Reinsurance segment well-positioned for favorable market conditions in property and specialty lines, expecting pricing to firm at January renewals.

• Social inflation pressures in US casualty lines. - Natural catastrophe volatility impacting results. - Competitive dynamics in certain insurance lines affecting pricing.

Q: Concerns about cuts in casualty premiums and reserve strengthening.

A: Diversification and cycle/portfolio management to ensure best returns, focusing on accretive lines.

Q: Update on insurance combined ratio guidance.

A: Depends on CAT, fundamentals still there with confidence in reaching 92% in 2025.

Q: Pricing in reinsurance ahead of January renewals.

A: Expect pricing to firm due to active CAT quarter, client demand for capacity, and quality of Everest's paper.

Q: Impact of Hurricane Milton on pricing.

A: Has 1:1 impact on US programs, weighs on pricing.

Q: Reserve study in 4Q and transparency.

A: Will continue to improve transparency, focus on US casualty elevated risk.

Q: International insurance build-out and expenses.

A: International operations up and running, J-curve effect with earned premiums expected to kick in.

Q: Casualty reinsurance pricing and growth.

A: Need broader economic improvement, rate acceleration, and ceding commission improvement.

Q: Property CAT pricing US vs international.

A: US slightly more, Europe to recover, some markets flat.

Q: Cyber pricing.

A: Cyber pricing down in insurance, still attractive in reinsurance with tight loss ratio caps.