Dec 31, 2023

Everest Q4 2023 Earnings Report

Everest reported record annual net income and operating income, driven by strong underwriting and investment performance.

Key Takeaways

Everest Group reported a strong fourth quarter and full-year 2023, with record annual net income of $2.5 billion and operating income of $2.8 billion. The company's performance was driven by growth in gross written premiums, improved combined ratios, and strong net investment income.

Record annual net income of $2.5 billion and operating income of $2.8 billion.

Fourth quarter net income of $804 million and operating income of $1.1 billion.

Gross written premium grew by 18.3% in the fourth quarter to $4.3 billion.

Combined ratio for the group was 93.2% in the fourth quarter.

Total Revenue
$3.58B
Previous year: $3.01B
+18.8%
EPS
$25.2
Previous year: $12.2
+106.2%
Combined Ratio
93.2%
Previous year: 87.8%
+6.2%
Gross Profit
$3.66B
Previous year: $3.27B
+11.8%
Cash and Equivalents
$1.44B
Previous year: $1.4B
+2.8%
Total Assets
$49.4B
Previous year: $40B
+23.6%

Everest

Everest

Forward Guidance

Everest has entered 2024 stronger and better positioned to take advantage of market opportunities in both franchises. This is evidenced by another well-executed and outstanding January 1 reinsurance renewal and improved primary pricing, generating excellent outcomes for our global portfolio. Looking ahead, we remain focused on achieving our strategic plan goals, with significant momentum across both businesses, and an exceptional team driving even greater value for our shareholders.

Positive Outlook

  • Strong fourth quarter performance capped off an exceptional 2023.
  • Delivering record annual results in underwriting income, net investment income, operating income, net income, and cash flow from operations.
  • Executed on our strategic objectives, while delivering an operating ROE of over 23% and a Total Shareholder Return of over 26% for the full year
  • The Everest of today is a stronger and more sophisticated company.
  • Delivering leading financial returns and we are on track to achieve the targets we set out at our most recent Investor Day.

Challenges Ahead

  • Impact of general economic conditions and conditions affecting the insurance and reinsurance industry
  • Adequacy of our reserves
  • Our ability to assess underwriting risk
  • Trends in rates for property and casualty insurance and reinsurance
  • Competition, investment market and investment income fluctuations