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Sep 30, 2023
Everest Q3 2023 Earnings Report
Everest reported excellent Q3 2023 results, delivering outstanding returns with a near 20% operating return on equity and an annualized 25% total shareholder return.
Key Takeaways
Everest Group reported a strong third quarter in 2023, marked by significant growth in gross written premiums, particularly in the reinsurance segment, and improved underwriting margins. The company's net income reached $678 million, and operating income was $613 million, driven by underwriting improvements and strong investment income.
Net income of $678 million and operating income of $613 million.
Gross written premium grew by 23.4% year-over-year to $4.4 billion.
Combined ratio improved to 91.4%, driven by better pricing and lower catastrophe losses.
Net investment income increased to $406 million.
Forward Guidance
Everest has significant momentum heading into the final quarter of the year, with strong tailwinds and exceptional talent powering disciplined execution and industry-leading shareholder returns.
Positive Outlook
- Favorable conditions and the global flight to quality persist in the hard reinsurance market.
- Well-positioned for the upcoming January renewals as a lead market and preferred partner.
- Expanding global reinsurance portfolio at significantly improved risk adjusted returns.
- Primary insurance business continues to generate strong and consistent underwriting income, with a significant year-over-year improvement.
- High-quality investment portfolio continues to deliver outstanding returns, generating over $400 million in net investment income in the quarter, and over $1 billion year-to-date.
Challenges Ahead
- General economic conditions
- Conditions affecting the insurance and reinsurance industry
- Adequacy of reserves
Historical Earnings Impact
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Avg. Return Before/After Earnings
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