Everest Re Group, Ltd. (RE) Bundle
A Brief History of Everest Re Group, Ltd.
Everest Re Group, Ltd. has established itself as a prominent player in the global reinsurance and insurance markets. As of 2024, the company continues to demonstrate significant growth and resilience in its financial performance.
Financial Performance Overview
For the third quarter of 2024, Everest Re Group reported:
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Gross Written Premiums | $4,425 million | $4,391 million | $13,561 million | $12,314 million |
| Net Written Premiums | $3,805 million | $3,866 million | $11,789 million | $10,870 million |
| Net Income | $509 million | $678 million | $1,966 million | $1,713 million |
| Net Operating Income | $630 million | $613 million | $2,070 million | $1,684 million |
Loss Ratios and Underwriting Performance
The company's underwriting performance is measured by loss ratios and combined ratios, which indicate the efficiency of its operations.
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Total Loss Ratio | 66.0% | 63.9% | 63.3% | 62.6% |
| Attritional Combined Ratio | 83.5% | 84.9% | 86.3% | 87.0% |
Investment Portfolio and Shareholder Equity
As of September 30, 2024, the company's total invested assets and cash reached $42.1 billion, reflecting a robust investment strategy. Shareholders' equity stood at $15.3 billion, an increase from $13.2 billion at year-end 2023. This growth includes unrealized net losses of $220 million on fixed maturity securities.
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $55.9 billion | $49.4 billion |
| Total Liabilities | $40.5 billion | $36.2 billion |
| Book Value per Share | $356.77 | $304.29 |
Recent Developments and Strategic Focus
Everest Re Group has continued to evolve its business model, focusing on specialty insurance and reinsurance lines with higher expected margins. The company has also emphasized strong underwriting discipline and risk management practices, contributing to its ongoing success in a competitive market.
In Q3 2024, the company experienced a pre-tax net catastrophe loss of $239 million, primarily due to Atlantic hurricanes, which reflects the ongoing challenges posed by climate-related events.
Everest Re Group remains committed to delivering value to its shareholders through strategic growth initiatives and disciplined underwriting practices.
A Who Owns Everest Re Group, Ltd. (RE)
Ownership Structure
As of 2024, Everest Re Group, Ltd. (NYSE: RE) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. The major shareholders include:
| Shareholder Type | Ownership Percentage | Number of Shares Owned (approx.) |
|---|---|---|
| Institutional Investors | 75% | 32.5 million |
| Mutual Funds | 15% | 6.5 million |
| Individual Shareholders | 10% | 4.3 million |
Top Institutional Shareholders
The following table outlines the top institutional shareholders of Everest Re Group as of 2024:
| Institution | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| The Vanguard Group, Inc. | 12.5% | 5.4 million |
| BlackRock, Inc. | 11.0% | 4.7 million |
| State Street Corporation | 8.5% | 3.6 million |
| Invesco Ltd. | 5.2% | 2.2 million |
| Wellington Management Co. LLP | 4.7% | 2.0 million |
Recent Shareholder Activity
In 2024, Everest Re Group reported significant shareholder activity, including:
- Share buybacks totaling $100 million, reducing the number of outstanding shares.
- Dividend payments amounting to $86 million, with a dividend yield of approximately 2.1%.
- Annualized Total Shareholder Return (TSR) of 19.4% as of Q3 2024.
Financial Performance Metrics
The financial performance metrics relevant to shareholders are as follows:
| Metric | 2024 Q3 | 2023 Q3 |
|---|---|---|
| Net Income | $509 million | $678 million |
| Net Operating Income | $630 million | $613 million |
| Return on Equity (ROE) | 13.3% | 21.2% |
| Book Value per Share | $356.77 | $258.71 |
| Dividends Paid | $7.50 per share | $6.70 per share |
Market Capitalization
The market capitalization of Everest Re Group as of Q3 2024 is approximately $15 billion, reflecting a strong position within the reinsurance market.
Conclusion on Ownership Trends
The ownership trends indicate a stable institutional presence, with significant investments from large asset management firms. The company continues to focus on shareholder returns through dividends and share repurchase programs.
Everest Re Group, Ltd. (RE) Mission Statement
Overview of Mission Statement
Everest Re Group, Ltd. aims to be a global leader in providing innovative and strategic reinsurance and insurance solutions. The company focuses on delivering best-in-class services that address the complex needs of its clients while fostering a culture of integrity, collaboration, and excellence.
Core Values
- Integrity: Upholding the highest ethical standards in all operations.
- Innovation: Continuously seeking new ways to enhance service offerings.
- Collaboration: Working together with clients and partners to achieve mutual success.
- Excellence: Striving for excellence in every aspect of the business.
Financial Performance Metrics
The financial performance of Everest Re Group, as of the third quarter of 2024, demonstrates the effectiveness of its mission and operational strategies. Key financial metrics include:
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Net Income | $509 million | $678 million | $1,966 million | $1,713 million |
| Net Operating Income | $630 million | $613 million | $2,070 million | $1,684 million |
| Total Revenues | $4,285 million | $3,991 million | $12,645 million | $10,927 million |
| Gross Written Premium | $4.4 billion | $4.39 billion | $13.56 billion | $12.31 billion |
| Combined Ratio | 93.1% | 91.4% | 90.8% | 90.1% |
| Book Value per Share | $356.77 | $258.71 | $361.87 | $301.76 |
Strategic Focus Areas
Everest Re Group prioritizes several strategic areas to enhance its mission:
- Client-Centric Approach: Tailoring solutions to meet specific client needs.
- Risk Management: Implementing robust risk assessment frameworks.
- Market Leadership: Expanding market presence through strategic partnerships and acquisitions.
- Sustainability: Committing to sustainable practices within the industry.
Recent Developments
In the third quarter of 2024, Everest Re Group reported a total shareholder return of 19.4% annualized. The group continues to focus on growth in property and specialty lines, with gross written premiums showing a year-over-year growth of 0.6% across the group.
Conclusion
The mission of Everest Re Group is supported by its financial metrics and strategic initiatives, reinforcing its position as a leader in the insurance and reinsurance market. The commitment to integrity, innovation, collaboration, and excellence remains central to its operations and growth trajectory.
How Everest Re Group, Ltd. (RE) Works
Business Model
Everest Re Group, Ltd. operates as a global provider of reinsurance and insurance solutions, focusing on property, casualty, and specialty lines. The company is structured into two main segments: Reinsurance and Insurance.
Financial Performance Overview
As of the third quarter of 2024, Everest Re reported a net income of $509 million, compared to $678 million in the same period of 2023. The net operating income for the same quarter was $630 million, up from $613 million year-over-year. The company achieved a total gross written premium of $4.4 billion, reflecting a year-over-year growth of 0.6% for the Group, with 1.7% growth in Reinsurance and a -2.1% decline in Insurance on a comparable basis.
Underwriting Results
The combined ratio for the Group was 93.1%, with a breakdown of 91.8% for Reinsurance and 97.1% for Insurance. The attritional combined ratios were 85.8% for the Group, 83.5% for Reinsurance, and 92.6% for Insurance.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $509 million | $678 million |
| Net Operating Income | $630 million | $613 million |
| Gross Written Premium | $4.4 billion | $4.39 billion |
| Combined Ratio | 93.1% | 91.4% |
| Attritional Combined Ratio | 85.8% | 86.6% |
Investment Income
Net investment income for the third quarter of 2024 was $496 million, an increase from $406 million in the prior year, driven by a larger asset base and strong core fixed income investment returns.
Catastrophe Losses
Pre-tax catastrophe losses for the quarter amounted to $279 million, compared to $170 million in Q3 2023. The company reported an estimated pre-tax net catastrophe loss of $300 to $400 million for the fourth quarter of 2024 due to Hurricane Milton.
Cash Flow and Assets
Operating cash flow for the third quarter was strong at $1.7 billion, compared to $1.4 billion in the same period of the previous year. Total invested assets and cash as of September 30, 2024, were $42.1 billion, up from $37.1 billion at the end of 2023.
| Cash Flow Statement (in millions) | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $509 | $678 |
| Operating Cash Flow | $1,700 | $1,400 |
| Total Invested Assets and Cash | $42,090 | $37,142 |
Shareholder Metrics
Book value per common share outstanding, excluding unrealized gains or losses, was $361.87 as of September 30, 2024, compared to $301.76 in the previous year. The total shareholder return (TSR) was reported at 19.4% annualized.
| Shareholder Metrics | 2024 | 2023 |
|---|---|---|
| Book Value per Share | $361.87 | $301.76 |
| Total Shareholder Return (TSR) | 19.4% | 24.5% |
Conclusion
The financial performance of Everest Re Group, Ltd. reflects a disciplined approach to underwriting and investment strategy, positioning the company to navigate market fluctuations effectively while providing significant returns to shareholders.
How Everest Re Group, Ltd. (RE) Makes Money
Revenue Generation through Insurance and Reinsurance
Everest Re Group, Ltd. operates in two primary segments: Reinsurance and Insurance. As of the third quarter of 2024, the company reported total gross written premiums of $4.4 billion, with year-over-year growth of 0.6% for the Group, 1.7% for Reinsurance, and a -2.1% for Insurance on a comparable basis. The growth in property and specialty lines was notable, though it was partially offset by reductions in certain casualty lines.
| Segment | Gross Written Premiums (Q3 2024) | Growth Rate (Year-over-Year) |
|---|---|---|
| Group | $4.4 billion | 0.6% |
| Reinsurance | $3.3 billion | 1.7% |
| Insurance | $1.2 billion | -2.1% |
Net Investment Income
In addition to underwriting income, Everest Re generates significant revenue from its investment portfolio. In Q3 2024, net investment income was reported at $496 million, an increase from $406 million in the same quarter of the previous year. This increase was attributed to a larger asset base and strong core fixed income investment returns.
Underwriting Performance Metrics
Underwriting income is crucial for Everest Re's profitability. For Q3 2024, the company posted a total underwriting income of $272 million, with a combined ratio of 93.1%. The combined ratio reflects the ratio of total incurred losses and underwriting expenses to net premiums earned, indicating the company's efficiency in underwriting.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Underwriting Income | $272 million | $301 million |
| Combined Ratio | 93.1% | 91.4% |
Catastrophe Losses Impact
Catastrophe losses also play a significant role in Everest Re's financials. In Q3 2024, pre-tax catastrophe losses amounted to $279 million net of recoveries and reinstatement premiums, compared to $170 million in Q3 2023. This increase reflects the challenges faced by the company due to weather-related events impacting their underwriting results.
Operational Efficiency and Return Metrics
Everest Re's operational efficiency is highlighted by its attritional combined ratio of 85.8% for Q3 2024. The company reported a net income of $509 million, translating to a net income per diluted share of $11.80. The net operating income was reported at $630 million, with a corresponding return on equity (ROE) of 13.3% for Q3 2024.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $509 million | $678 million |
| Net Operating Income | $630 million | $613 million |
| Return on Equity (ROE) | 13.3% | 21.2% |
Shareholder Returns
As part of its commitment to shareholders, Everest Re reported a total shareholder return (TSR) of 19.4% annualized for the year-to-date period. This performance underscores the company's focus on delivering value to its shareholders through effective management of its underwriting and investment operations.
Conclusion on Financial Health
Everest Re Group's financial health as of Q3 2024 reflects a robust business model driven by a balanced approach to underwriting and investment income. The company's strategic focus on property and specialty lines, coupled with effective risk management practices, positions it well for continued profitability.
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Article updated on 8 Nov 2024
Resources:
- Everest Re Group, Ltd. (RE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Everest Re Group, Ltd. (RE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Everest Re Group, Ltd. (RE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.