EVEREST GROUP LTD
For the period ended Mar 31, 2025. Filed May 2, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 2, 2025
EG$411.11-1.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-05.
0001095073-24-000046
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-02.
0001095073-25-000042
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 113 previous paragraphs and 113 current paragraphs.
46 unchanged; 45 reworded; 22 added; 22 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 19 previous and 17 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (22)
Current report
Overview.
Current report
Everest is a global underwriting leader providing best-in-class property, casualty and specialty reinsurance and insurance solutions. As part of the Standard & Poor’s (“S&P”) 500 Index, we are a leading financial services institution focused on value creation for our shareholders while diversifying our portfolio and geographic presence. Through our direct and indirect subsidiaries operating in the U.S. and internationally, we serve a diverse group of clients worldwide, providing what we believe are extensive product and distribution capabilities, a strong balance sheet, an innovative culture and access to world-class talent.
Current report
As a global leader with a 50-year track record, we are a preferred Reinsurance partner in the markets we serve, and with our growing Insurance franchise we strive to deliver consistent value to all our stakeholders. We continue to grow and develop our Insurance business, investing in our global platform and strengthening our portfolio and its potential to deliver on our customer promise.
Current report
During 2024, we formed a new “Other” segment, primarily comprised of the results of our sports and leisure business sold in October 2024, consisting of policies written prior to the sale and polices renewed and certain new business written on the Company’s paper post-sale. It also includes run-off asbestos and environmental (“A&E”) exposures, certain discontinued insurance programs primarily written prior to 2012 and certain discontinued insurance and reinsurance coverage classes. The Other segment does not generally sell insurance or reinsurance products but is responsible for the management of existing policies and settlement of related losses. These segment presentation changes have been reflected retrospectively. The Company will continue to have two reportable segments that actively sell products, Reinsurance and Insurance, consistent with how the on-going business is managed. See Note 6 of the Notes to the Consolidated Financial Statements for a summary of segment results.
Current report
Net written premiums decreased by 4.2% to $3.7 billion for the three months ended March 31, 2025, compared to $3.9 billion for the three months ended March 31, 2024. The larger percentage decrease in net written premiums compared to the percentage decrease in gross written premiums was mainly due to higher cessions of the Company’s catastrophe excess of loss contracts to Mt. Logan Re, Ltd. (“Mt. Logan Re”).
Current report
Other Underwriting Expenses. Other underwriting expenses were $238 million and $224 million for the three months ended March 31, 2025 and March 31, 2024, respectively. The increase in other underwriting expenses was mainly due to the impact of the increase in premiums earned as well as the continued build out of our insurance operations, including an expansion of the international insurance platform.
Current report
On December 27, 2023, the Government of Bermuda enacted the Corporate Income Tax Act 2023 (“The 2023 Act”), which applies a 15% corporate income tax to certain Bermuda businesses in fiscal years beginning on or after January 1, 2025. The 2023 Act includes a provision referred to as “The Economic Transition Adjustment”, which is intended to provide a fair and equitable transition into the new tax regime, and results in a deferred tax benefit for the Company. However, on January 15, 2025, the Organisation for Economic Co-operation and Development issued Administrative Guidance related to “deferred tax assets arising from tax benefits provided by General Government” whereby it has restricted the utilization of those deferred tax benefits against the computation of its Pillar Two Global Minimum Taxes to approximately 20% of the originally calculated amounts and only for a grace period of two years through 2026. If the Bermuda Ministry of Finance amends The 2023 Act in response to this guidance, the exact impact of any such amendments is uncertain but there is a risk that it results in a reduction in the Company's Deferred Tax Assets.
Current report
The loss ratio component increased by 13.8 points to 75.1% for the three months ended March 31, 2025, compared to 61.3% for the three months ended March 31, 2024 mainly due to a $449 million increase in catastrophe losses and a $208 million increase in attritional losses which was largely attributable to $83 million in losses from the Washington D.C. aviation accident as well as impact of the increase in underlying exposures, due to increased premiums earned.
Current report
The commission and brokerage ratio components remained consistent at 21.4% for both the three months ended March 31, 2025 and the three months ended March 31, 2024.
Current report
During the fourth quarter of 2024, the Company revised its classification and presentation of certain run-off business, previously included within the Reinsurance and Insurance reportable segments, as part of a new segment called "Other". The Other segment includes the results of our Sports and Leisure business sold in October 2024, consisting of policies written prior to the sale and polices renewed and certain new business written on the Company’s paper post-sale. It also includes run-off A&E exposures, certain discontinued insurance programs primarily written prior to 2012 and certain discontinued insurance and reinsurance coverage classes. The Other segment does not generally sell insurance or reinsurance products but is responsible for the management of existing policies and settlement of related losses.
Current report
Net written premiums decreased by 4.5% to $2.8 billion for the three months ended March 31, 2025, compared to $2.9 billion for the three months ended March 31, 2024, which was mainly due to higher cessions of the Company’s catastrophe excess of loss contracts to Mt. Logan Re.
Current report
Premiums earned increased by 6.5% to $2.9 billion for the three months ended March 31, 2025, compared to $2.7 billion for the three months ended March 31, 2024. The change in premiums earned relative to net written premiums is the result of timing; premiums are earned ratably over the coverage period, whereas written premiums are generally recorded at the initiation of the coverage period. The growth in premiums earned is primarily driven by increased property pro rata writings that were recorded over the prior quarters which are now being earned.
Current report
Incurred losses increased by 35.6% to $2.2 billion for the three months ended March 31, 2025, compared to $1.6 billion for the three months ended March 31, 2024. The increase was primarily due to an increase of $140 million in current year attritional losses and an increase of $443 million in current year catastrophe losses. The increase in current year attritional losses was mainly related to $77 million of losses from the Washington D.C. aviation accident, as well as the impact of the increase in premiums earned. The current year catastrophe losses of $523 million for the three months ended March 31, 2025 consisted of losses from the 2025 Southern California wildfires ($503 million) and the Myanmar earthquake ($20 million). The $80 million of current year catastrophe losses for the three months ended March 31, 2024 related primarily to the 2024 Baltimore bridge collapse ($65 million) and the 2024 U.S. East Coast convective storms ($15 million).
Current report
Net written premiums remained consistent at $896 million for the three months ended March 31, 2025 and $897 million for the three months ended March 31, 2024.
Current report
Incurred losses and LAE increased by 16.3% to $640 million for the three months ended March 31, 2025, compared to $551 million for the three months ended March 31, 2024. The increase was mainly due to an increase of $84 million in current year attritional losses and an increase of $5 million in current year catastrophe losses. The increase in current year attritional losses was primarily due to higher loss selections in casualty lines, partially offset by changes in the mix of business. The $10 million of current year catastrophe losses for the three months ended March 31, 2025 related to the 2025 Southern California wildfires ($8 million) and the Myanmar earthquake ($2 million). The $5 million of current year catastrophe losses for the three months ended March 31, 2024 related to the 2024 Baltimore bridge collapse.
Current report
Other.
Current report
The Other segment includes the results of our sports and leisure business sold in October 2024, consisting of policies written prior to the sale and polices renewed and certain new business written on the Company’s paper post-sale. It also includes run-off A&E exposures, certain discontinued insurance programs primarily written prior to 2012 and certain discontinued insurance and reinsurance coverage classes. The Other segment does not generally sell insurance or reinsurance products but is responsible for the management of existing policies and settlement of related losses.
Current report
The following table presents the underwriting results and ratios for the Other segment for the periods indicated:
Current report
Premiums. Gross written premiums decreased by 63.8% to $28 million for the three months ended March 31, 2025, compared to $77 million for the three months ended March 31, 2024. Net written premiums decreased by 55.3% to $27 million for the three months ended March 31, 2025, compared to $61 million for the three months ended March 31, 2024. Premiums earned decreased by 37.2% to $33 million for the three months ended March 31, 2025, compared to $52 million for the three months ended March 31, 2024. The decrease in gross written premiums, net written premiums and premiums earned are due to the lines of business included in this segment primarily being in run-off, except for a limited number of renewed and new policies written on the Company's paper by the purchaser of the sports and leisure business sold in October 2024, for a finite period of time post-closing.
Current report
Incurred Losses and LAE. Incurred losses and LAE decreased by 35.6% to $30 million for the three months ended March 31, 2025, compared to $46 million for the three months ended March 31, 2024. Quarterly losses are primarily associated with the new and renewed sports and leisure business written on the company’s books.
Current report
(1)Reserves for A&E exposures are included within Other. At March 31, 2025, A&E Case and IBNR reserves totaled $155 million and $96 million, respectively.
Current report
(1)Reserves for A&E exposures are included within Other. At December 31, 2024, A&E Case and IBNR reserves totaled $149 million and $111 million, respectively.
Removed paragraphs (22)
Previous report
Net written premiums decreased by 1.6% to $3.8 billion for the three months ended September 30, 2024, compared to $3.9 billion for the three months ended September 30, 2023, primarily driven by an increase in premiums ceded to Mt. Logan Re, Ltd. (“Mt. Logan Re”) cells within the Reinsurance segment for property catastrophe excess of loss line of business, and an increase in premium cession in Insurance driven by business mix and lower retention in certain lines of business. Net written premiums increased by 8.5% to $11.8 billion for the nine months ended September 30, 2024, compared to $10.9 billion for the nine months ended September 30, 2023. The current year over prior year increase remained relatively consistent with the percentage increase in gross written premiums.
Previous report
Incurred losses and LAE increased by 15.5% to $7.1 billion for the nine months ended September 30, 2024, compared to $6.2 billion for the nine months ended September 30, 2023, primarily due to an increase of $730 million in current year attritional losses and an increase of $229 million in current year catastrophe losses. The increase in current year attritional losses was mainly due to the impact of the increase in underlying exposures due to increased premiums earned. The current year catastrophe losses of $546 million for the nine months ended September 30, 2024 related primarily to Hurricane Helene ($81 million), Hurricane Beryl ($67 million), the 2024 Baltimore bridge collapse ($62 million), Hurricane Debby ($60 million), the 2024 European flood Boris ($48 million), the 2024 Brazil Floods ($41 million), the third quarter 2024 Calgary Alberta storms ($41 million), the 2024 Germany floods ($41 million), the 2024 Dubai floods ($40 million) and the 2024 Taiwan earthquake ($27 million). The $317 million of current year catastrophe losses for the nine months ended September 30, 2023 related primarily to the 2023 Turkey earthquakes ($95 million) the 2023 New Zealand storms ($46 million), Hurricane Idalia ($42 million), the 2023 Morocco earthquake ($40 million), the 2023 Hawaii wildfire ($35 million), the 2023 Italy convective storm ($28 million), the 2023 third quarter U.S. storms ($20 million), Typhoon Mawar ($11 million) and the 2023 Hans windstorm ($10 million).
Previous report
Refer to the “Ratios” section for loss ratio analysis discussion.
Previous report
Other Underwriting Expenses. Other underwriting expenses were $236 million and $215 million for the three months ended September 30, 2024 and September 30, 2023, respectively. Other underwriting expenses were $694 million and $620 million for the nine months ended September 30, 2024 and 2023, respectively. The increases in other underwriting expenses remained relatively consistent with the growth in premiums earned. Refer to the “Ratios” section for other underwriting expense ratio analysis discussion.
Previous report
With the assent of the governor on December 27, 2023, the Bermuda Corporate Income Tax Act of 2023 ( the “2023 Act”) became law. Beginning in 2025, a 15% corporate income tax will be applicable to Bermuda businesses that are part of multinational enterprise groups with annual revenue of €750 million or more. Group’s Bermuda entities will be subject to the new corporate income tax. The Company has evaluated The 2023 Act and has recorded $578 million of net deferred income tax benefits as of December 31, 2023. The net deferred income tax benefits relate primarily to a default provision in the law that allows for an Economic Transition Adjustment (“ETA”). The ETA allowed companies to establish deferred tax assets or liabilities related to the revaluation of intangible assets, excluding goodwill, and their other assets and liabilities, based on fair value as of September 30, 2023.
Previous report
On August 16, 2022, the Inflation Reduction Act of 2022 (“IRA”) was enacted. We have evaluated the tax provisions of the IRA, the most significant of which are the corporate alternative minimum tax and the share repurchase excise tax, and do not expect the legislation to have a material impact on our results of operations.
Previous report
The loss ratio component increased by 2.0 points to 66.0% for the three months ended September 30, 2024, compared to 63.9% for the three months ended September 30, 2023, mainly due to a $135 million increase in catastrophe losses. The loss ratio component increased by 0.7 points to 63.3% for the nine months ended September 30, 2024, compared to 62.6% for the nine months ended September 30, 2023, primarily due to an increase of $229 million in current year catastrophe losses.
Previous report
The commission and brokerage ratio components decreased to 21.1% for the three months ended September 30, 2024, compared to 21.4% for the three months ended September 30, 2023, and remained consistent with 21.3% for the nine months ended September 30, 2024, compared to 21.3% for the nine months ended September 30, 2023. The quarter over quarter variance was mainly due to changes in the mix of business.
Previous report
Total net gains (losses) on investments during the three months ended September 30, 2024 primarily consist of $24 million of losses due to the disposition of investments, an increase to the allowance for credit losses of $9 million, partially offset by $5 million of gains from fair value adjustments on equity securities. The realized losses from dispositions of investments mainly related to the execution of a Company strategy to sell lower yielding investments in order to reinvest the proceeds at higher interest rates.
Previous report
The Company operates through two operating segments: Reinsurance and Insurance. The Reinsurance segment writes worldwide property and casualty reinsurance and specialty lines of business, on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies. Business is written in the U.S., Bermuda, and Ireland offices, as well as, through branches in Canada, Singapore, the United Kingdom (“UK”) and Switzerland. The Insurance segment writes property and casualty insurance directly and through brokers, including for surplus lines, and general agents within the U.S., Bermuda, Canada, Europe, Singapore and South America through its offices in the U.S., Australia, Bermuda, Canada, Chile, Colombia, Mexico, Singapore, the UK, Ireland, and branches located in the UK, the Netherlands, France, Germany and Spain. The two segments are managed independently, but conform with corporate guidelines with respect to pricing, risk management, control of aggregate catastrophe exposures, capital, investments and support operations.
Previous report
During the fourth quarter of 2023, the Company revised the classification and presentation of certain products related to its accident and health business within the segment groupings. These products have been realigned from within the Reinsurance segment to the Insurance segment to appropriately reflect how the business segments are managed. These changes have been reflected retrospectively.
Previous report
Net written premiums of $3.0 billion for the three months ended September 30, 2024 remained consistent with the $3.0 billion for the three months ended September 30, 2023, with the minimal decrease due to increased cessions to Mt. Logan cells emanating from the property catastrophe line of business. Net written premiums increased by 11.2% to $8.9 billion for the nine months ended September 30, 2024, compared to $8.0 billion for the nine months ended September 30, 2023. The increase was consistent with the percentage increase in gross written premiums.
Previous report
Premiums earned increased by 14.5% to $3.0 billion for the three months ended September 30, 2024, compared to $2.6 billion for the three months ended September 30, 2023. Premiums earned increased by 17.4% to $8.4 billion for the nine months ended September 30, 2024, compared to $7.2 billion for the nine months ended September 30, 2023. Premiums earned generally reflect the portion of net premiums written that was recorded as revenues for the period as the exposure periods expire.
Previous report
Incurred losses increased by 17.5% to $1.9 billion for the three months ended September 30, 2024, compared to $1.7 billion for the three months ended September 30, 2023. The increase was primarily due to an increase of $184 million in current year attritional losses and an increase of $105 million in current year catastrophe losses. The increase in current year attritional losses was mainly related to the impact of the increase in premiums earned. The current year catastrophe losses of $270 million for the three months ended September 30, 2024 related primarily to Hurricane Helene ($65 million), Hurricane Debby ($59 million), Hurricane Beryl ($56 million), the 2024 European flood Boris ($46 million) and the 2024 third quarter Calgary Alberta storms ($35 million). The $165 million of current year catastrophe losses for the three months ended September 30, 2023 related primarily to Hurricane Idalia ($42 million), the 2023 Morocco earthquake ($40 million), the Hawaii wildfire ($30 million), the 2023 Italy convective storm ($28 million), the third quarter 2023 U.S. storms ($15 million) and the 2023 Windstorm Hans ($10 million).
Previous report
Incurred losses increased by 18.5% to $5.3 billion for the nine months ended September 30, 2024, compared to $4.4 billion for the nine months ended September 30, 2023. The increase was primarily due to an increase of $642 million in current year attritional losses and an increase of $181 million in current year catastrophe losses. The increase in current year attritional losses was mainly related to the impact of the increase in premiums earned. The current year catastrophe losses of $487 million for the nine months ended September 30, 2024 related primarily to Hurricane Helene ($65 million), Hurricane Debby ($59 million), the 2024 Baltimore bridge collapse ($57 million), Hurricane Beryl ($56 million), the 2024 European flood Boris ($46 million), the 2024 Brazil Floods ($41 million), the 2024 Dubai floods ($40 million), the 2024 Germany floods ($39 million), the third quarter 2024 Calgary Alberta storms ($35 million) and the 2024 Taiwan earthquake ($25 million). The $305 million of current year catastrophe losses for the nine months ended September 30, 2023 related primarily to the 2023 Turkey earthquakes ($95 million), the 2023 New Zealand storms ($44 million), Hurricane Idalia ($42 million), the 2023 Morocco earthquake ($40 million), the 2023 Hawaii wildfire ($30 million), the 2023 Italy convective storm ($28 million), the 2023 third quarter U.S. storms ($20 million), Typhoon Mawar ($11 million) and the 2023 Hans windstorm ($10 million).
Previous report
Segment other underwriting expenses increased to $73 million for the three months ended September 30, 2024 from $65 million for the three months ended September 30, 2023. Segment other underwriting expenses increased to $215 million for the nine months ended September 30, 2024, compared to $189 million for the nine months ended September 30, 2023. The increases were mainly due to increased expenditures supporting the increased premium volume of the segment.
Previous report
Net written premiums decreased by 5.4% to $830 million for the three months ended September 30, 2024, compared to $878 million for the three months ended September 30, 2023, primarily due to an increase in premium cession driven by business mix and lower retention in certain lines of business. Net written premiums of $2.8 billion for the nine months ended September 30, 2024, remained consistent with the $2.8 billion for the nine months ended September 30, 2023.
Previous report
Incurred losses and LAE increased by 8.3% to $642 million for the three months ended September 30, 2024, compared to $593 million for the three months ended September 30, 2023. The increase was mainly due to an increase of $19 million in current year attritional losses and an increase of $30 million in current year catastrophe losses. The increase in current year attritional losses was primarily due to changes in mix of business. The $40 million of current year catastrophe losses for the three months ended September 30, 2024 related primarily to Hurricane Helene ($16 million), Hurricane Beryl ($11 million), the 2024 Jasper fires ($6 million) and the third quarter 2024 Calgary Alberta storms ($6 million). The $10 million of current year catastrophe losses for the three months ended September 30, 2023 related to the 2023 third quarter U.S. storms ($5 million) and the 2023 Hawaii wildfire ($5 million).
Previous report
Incurred losses and LAE increased by 7.8% to $1.9 billion for the nine months ended September 30, 2024, compared to $1.7 billion for the nine months ended September 30, 2023. The increase was mainly due to an increase of $88 million in current year attritional losses and an increase in current year catastrophe losses of $48 million. The increase in current year attritional losses was primarily due to the impact of the increase in premiums earned and changes in mix of business. The current year catastrophe losses of $60 million for the nine months ended September 30, 2024 related primarily to Hurricane Helene ($16 million), Hurricane Beryl ($11 million), the 2024 second quarter U.S. convective storms ($10 million), the 2024 Jasper fires ($6 million), the third quarter 2024 Calgary Alberta storms ($6 million) and the 2024
Previous report
Baltimore bridge collapse ($5 million). The $12 million of current year catastrophe losses for the nine months ended September 30, 2023 related to the 2023 third quarter U.S. storms ($5 million), the 2023 Hawaii wildfire ($5 million) and the 2023 New Zealand storms ($2 million).
Previous report
Segment Expenses. Commission and brokerage expenses increased by 6.8% to $116 million for the three months ended September 30, 2024, compared to $108 million for the three months ended September 30, 2023. Commission and brokerage expenses increased by 7.3% to $344 million for the nine months ended September 30, 2024, compared to $320 million for the nine months ended September 30, 2023. The increases were mainly due to changes in the mix of business.
Previous report
On May 19, 2023, the Company completed the public offering of 4,140,000 common shares, which included full exercise of the underwriters’ option to purchase an additional 540,000 common shares, at a public offering price of $360.00 per share. Total net proceeds from the public offering were $1,445 million, after underwriting discount and expenses. The Company’s intent was to use the net proceeds from this offering for long-term reinsurance opportunity and continued build out of the global insurance business.
Reworded paragraphs (45)
Previous wording
The following is a discussion of our results of operations, financial condition and liquidity and capital resources for the three and nine months ended September 30, 2024. This discussion should be read in conjunction with the consolidated financial statements and related notes, under Part I - Item 1 of this Form 10-Q, as well as the audited consolidated financial statements and notes thereto for the year ended December 31, 2023, included in the Company’s most recent Form 10-K filing.
Current wording
The following is a discussion of our results of operations, financial condition and liquidity and capital resources for the three months ended March 31, 2025. This discussion should be read in conjunction with the consolidated financial statements and related notes, under Part I - Item 1 of this Form 10-Q, as well as the audited consolidated financial statements and notes thereto for the year ended December 31, 2024, included in the Company’s most recent Form 10-K filing.
Previous wording
Premiums. Gross written premiums increased by 0.8% to $4.4 billion for the three months ended September 30, 2024, compared to $4.4 billion for the three months ended September 30, 2023, reflecting a $67 million, or 2.1%, increase in our reinsurance business, partially offset by a $33 million, or 2.8%, decrease in our insurance business. The increase in reinsurance premiums was primarily due to property pro rata and property catastrophe excess of loss lines of business, partially offset by actions taken on our North America casualty business. The decrease in insurance premiums compared to the prior year period was primarily due to portfolio actions taken on accident and health and specialty casualty lines of business, partially offset by an increase in property/short tail business and other specialty business. Gross written premiums increased by 10.1% to $13.6 billion for the nine months ended September 30, 2024, compared to $12.3 billion for the nine months ended September 30, 2023, reflecting a $1.1 billion, or 12.7%, increase in our reinsurance business and a $163 million, or 4.3%, increase in our insurance business. The increase in reinsurance premiums was primarily driven by property and casualty pro rata lines of business and property catastrophe excess of loss lines of business. The increase in insurance premiums was primarily due to property/short tail business, other specialty business and professional liability business, as well as continuing growth in international business across all lines. The increase in insurance premiums was partially offset by portfolio actions taken on accident and health and workers’ compensation lines.
Current wording
Premiums. Gross written premiums decreased by 0.5% to $4.4 billion for the three months ended March 31, 2025, compared to $4.4 billion for the three months ended March 31, 2024, reflecting a $49 million, or 63.8%, decrease in business within the Other segment and a $15 million, or 1.3%, decrease in our insurance business, partially offset by a $44 million, or 1.4%, increase in our reinsurance business. The decrease in Other premiums was due to the lines of business included in this segment primarily being in run-off, except for a limited number of renewed and new policies written on the Company's paper by the purchaser of the sports and leisure business sold in October 2024, for a finite period of time post-closing. The decrease in insurance premiums was primarily due to portfolio actions taken on North America casualty lines and workers’ compensation lines, partially offset by an increase in property/short tail business and other specialty business. The increase in reinsurance premiums was primarily due to property catastrophe excess of loss business and property pro rata business.
Previous wording
Premiums earned increased by 11.5% to $3.9 billion during the three months ended September 30, 2024, compared to $3.5 billion during the three months ended September 30, 2023. Premiums earned increased by 14.2% to $11.3 billion for the nine months ended September 30, 2024, compared to $9.9 billion for the nine months ended September 30, 2023. Premiums earned generally reflect the portion of net premiums written that was recognized as revenue for the period as the exposure period expires. The change in premiums earned relative to net written premiums is primarily the result of timing; premiums are earned ratably over the coverage period, whereas written premiums are recorded at the initiation of the coverage period.
Current wording
Premiums earned increased by 5.5% to $3.9 billion during the three months ended March 31, 2025, compared to $3.7 billion during the three months ended March 31, 2024. The change in premiums earned relative to net written premiums was primarily the result of timing; premiums are earned ratably over the coverage period whereas written premiums are generally recorded at the initiation of the coverage period.
Previous wording
Other Income (Expense). We recorded other expense of $102 million and other income of $103 million for the three months ended September 30, 2024 and 2023, respectively. We recorded other expense of $48 million and other income of $61 million for the nine months ended September 30, 2024 and 2023, respectively. The changes were primarily the result of fluctuations in foreign currency exchange rates. We recognized foreign currency exchange expense of $102 million and foreign exchange currency income of $100 million for the three months ended September 30, 2024 and 2023, respectively. We recognized foreign currency exchange expense of $61 million and foreign currency exchange income of $51 million for the nine months ended September 30, 2024 and 2023, respectively. Additionally, the other expense incurred for the nine months ended September 30, 2024 includes a $9 million pension plan curtailment gain recognized in the second quarter of 2024.
Current wording
Other Income (Expense). We recorded other expense of $73 million and other income of $31 million for the three months ended March 31, 2025 and 2024, respectively. The change was primarily the result of fluctuations in foreign currency exchange rates. We recognized foreign currency exchange expense of $74 million for thethree months ended March 31, 2025 and foreign currency exchange income of$32 million for the three months ended March 31, 2024.
Previous wording
Net Investment Income. Refer to the “Consolidated Investments Results” section below.
Current wording
Net Investment Income. Refer to Consolidated Investments Results Section below.
Previous wording
Net Gains (Losses) on Investments. Refer to the “Consolidated Investments Results” section below.
Current wording
Net Gains (Losses) on Investments. Refer to Consolidated Investments Results Section below.
Previous wording
Incurred losses and LAE increased by 15.0% to $2.6 billion for the three months ended September 30, 2024, compared to $2.2 billion for the three months ended September 30, 2023, primarily due to an increase of $203 million in current year attritional losses and an increase of $135 million in current year catastrophe losses. The increase in current year attritional losses was mainly due to the impact of the increase in underlying exposures, due to increased premiums earned. The current year catastrophe losses of $310 million for the three months ended September 30, 2024 related primarily to Hurricane Helene ($81 million), Hurricane Beryl ($67 million), Hurricane Debby ($60 million), the 2024 European flood Boris ($48 million) and the third quarter 2024 Calgary Alberta storms ($41 million). The $175 million of current year catastrophe losses for the three months ended September 30, 2023 related primarily to Hurricane Idalia ($42 million), the 2023 Morocco earthquake ($40 million), the 2023 Hawaii wildfire ($35 million), the 2023 Italy convective storm ($28 million), the 2023 third quarter U.S. storms ($20 million) and the 2023 Hans windstorm ($10 million).
Current wording
Incurred losses and LAE increased by 29.4% to $2.9 billion for the three months ended March 31, 2025, compared to $2.2 billion for the three months ended March 31, 2024, primarily due to an increase of $208 million in current year attritional losses and an increase of $449 million in current year catastrophe losses. The increase in current year attritional losses was mainly due to $83 million of losses from the Washington D.C. aviation accident as well as the impact of the increase in underlying exposures, due to increased premiums earned. The current year catastrophe losses of $534 million for the three months ended March 31, 2025 related primarily to the 2025 Southern California wildfires ($512 million) and the Myanmar earthquake ($22 million). The $85 million of current year catastrophe losses for the three months ended March 31, 2024 related primarily to the 2024 Baltimore bridge collapse ($70 million) and the 2024 U.S. East Coast convective storms ($15 million).
Previous wording
Catastrophe losses and loss expenses typically have a material effect on our incurred losses and LAE results and can vary significantly from period to period. Losses from natural catastrophes contributed 7.9 percentage points to the combined ratio for the three months ended September 30, 2024, compared with 5.0 percentage points in the corresponding period of 2023, and 4.9 percentage points to the combined ratio for the nine months ended September 30, 2024, compared with 3.2 percentage points in the corresponding period of 2023.
Current wording
Catastrophe losses and loss expenses typically have a material effect on our incurred losses and LAE results and can vary significantly from period to period. Losses from natural and man-made catastrophes contributed 13.9 percentage points to the combined ratio for the three months ended March 31, 2025, compared with 2.3 percentage points for the three months ended March 31, 2024.
Previous wording
Commission, Brokerage, Taxes and Fees. Commission, brokerage, taxes and fees increased by 9.9% to $826 million for the three months ended September 30, 2024, compared to $752 million for the three months ended September 30, 2023. Commission, brokerage, taxes and fees increased by 14.2% to $2.4 billion for the nine months ended September 30, 2024, compared to $2.1 billion for the nine months ended September 30, 2023. The increases were primarily due to the impact of the increase in premiums earned and changes in the mix of business. Refer to the “Ratios” section for commission and brokerage ratio analysis discussion.
Current wording
Commission, Brokerage, Taxes and Fees. Commission, brokerage, taxes and fees increased by 5.4% to $824 million for the three months ended March 31, 2025, compared to $782 million for the three months ended March 31, 2024. The increase was primarily due to the impact of the increase in premiums earned and changes in the mix of business.
Previous wording
Corporate Expenses. Corporate expenses, which are general operating expenses that are not allocated to segments, were $25 million and $19 million for the three months ended September 30, 2024 and 2023, respectively, and $69 million and $55 million for the nine months ended September 30, 2024 and 2023, respectively. The increase in Corporate expenses for the three and nine month periods ended September 30, 2024 are primarily due to information management related costs, including the acceleration of cybersecurity, corporate applications and infrastructure investments.
Current wording
Corporate Expenses. Corporate expenses, which are general operating expenses that are not allocated to segments, remained relatively consistent at $21 million and $22 million for the three months ended March 31, 2025 and 2024, respectively.
Previous wording
Interest, Fees and Bond Issue Cost Amortization Expense. Interest, fees and other bond amortization expense was $38 million and $34 million for the three months ended September 30, 2024 and 2023, respectively. Interest, fees and other bond amortization expense was $112 million and $99 million for the nine months ended September 30, 2024 and 2023, respectively. The increases were mainly due to higher interest costs on the Federal Home Loan Bank of New York borrowing. Interest expense was also impacted by the movements in the floating interest rate related to the Company’s outstanding fixed to floating rate long-term subordinated notes, which is reset quarterly, per the note agreement. The floating rate was 7.76% as of September 30, 2024 compared to 8.01% as of September 30, 2023.
Current wording
Interest, Fees and Bond Issue Cost Amortization Expense. Interest, fees and other bond amortization expense was $38 million and $37 million for the three months ended March 31, 2025 and 2024, respectively. Interest expense was mainly impacted by the movement in the floating interest rate related to the Company’s long-term subordinated notes, which is reset quarterly per the note agreement, as well as variable interest rate costs on borrowings from FHLBNY.
Previous wording
Income Tax Expense (Benefit). We had income tax expense of $68 million and $47 million for the three months ended September 30, 2024 and 2023, respectively. We had income tax expense of $275 million and $169 million for the nine months ended September 30, 2024 and 2023, respectively. The period over period increase in income tax expense is primarily a function of the geographic location of the Company’s pre-tax income and the statutory tax rates in those jurisdictions. The effective tax rate (“ETR”) is primarily affected by tax-exempt investment income, foreign tax credits and dividends. Variations in the ETR generally result from changes in the relative levels of pre-tax income, including the impact of catastrophe losses and net capital gains (losses), among jurisdictions with different tax rates.
Current wording
Income Tax Expense (Benefit). Income tax expense was $39 million and $99 million for the three months ended March 31, 2025 and 2024, respectively. Income tax expense is primarily a function of the geographic location of the Company’s pre-tax income and the statutory tax rates in those jurisdictions. The effective tax rate (“ETR”) is primarily affected by tax-exempt investment income, foreign tax credits and dividends. Variations in the ETR generally result from changes in the relative levels of pre-tax income, including the impact of catastrophe losses and net capital gains (losses), among jurisdictions with different tax rates.
Previous wording
Our net income was $509 million and $678 million for the three months ended September 30, 2024 and 2023, respectively. Our net income was $2.0 billion and $1.7 billion for the nine months ended September 30, 2024 and 2023, respectively. The period over period changes in net income were primarily driven by the financial component fluctuations explained above.
Current wording
Our net income was $210 million and $733 million for the three months ended March 31, 2025 and 2024, respectively. The period over period decrease in net income was primarily driven by the financial component fluctuations explained above.
Previous wording
Our combined ratio increased by 1.6 points to 93.1% for the three months ended September 30, 2024, compared to 91.4% for the three months ended September 30, 2023 and increased by 0.6 points to 90.8% for the nine months ended September 30, 2024, compared to 90.1% for the nine months ended September 30, 2023. The current year increase is primarily due to higher catastrophe losses. Refer to the analysis of combined ratio components below.
Current wording
Our combined ratio increased by 13.9 points to 102.7% for the three months ended March 31, 2025, compared to 88.8% for the three months ended March 31, 2024. The current year increase is primarily due to higher catastrophe losses and higher attritional losses in 2025. For further details, please refer to the analysis of combined ratio components below.
Previous wording
The other underwriting expense ratios decreased to 6.0% for the three months ended September 30, 2024, compared to 6.1% for the three months ended September 30, 2023, and decreased to 6.2% for the nine months ended September 30, 2024, compared to 6.3% for the nine months ended September 30, 2023. The decrease for the three and nine months comparative period was mainly due to a higher earned premium base.
Current wording
The other underwriting expense ratios slightly increased to 6.2% for the three months ended March 31, 2025, compared to 6.1% for the three months ended March 31, 2024.
Previous wording
Shareholders’ equity increased by $2.1 billion to $15.3 billion at September 30, 2024 from $13.2 billion at December 31, 2023, principally as a result of $2.0 billion of net income, $521 million of unrealized appreciation on fixed income available for sale securities and equity method investments, net of tax, $45 million of net foreign currency translation adjustments, $26 million of share-based compensation transactions and $24 million of net benefit plan obligation adjustments, partially offset by $249 million of shareholder dividends and $200 million of share repurchases.
Current wording
Shareholders’ equity increased by $264 million to $14.1 billion at March 31, 2025 from $13.9 billion at December 31, 2024, principally as a result of $289 million of unrealized appreciation on available for sale fixed maturity portfolio net of tax, $210 million of net income and $64 million of net foreign currency translation adjustments, partially offset by $200 million of treasury share purchases and $85 million of shareholder dividends.
Previous wording
Net investment income increased by 22.2% to $496 million for the three months ended September 30, 2024, compared with net investment income of $406 million for the three months ended September 30, 2023. The increase for the three months ended September 30, 2024 was primarily the result of an increase of $79 million in income from fixed maturity investments, an increase of $21 million in income from other alternative investments and an increase of $12 million in income from short-term investments, partially offset by a decline of $24 million in limited partnership income. Net investment income increased by 44.8% to $1.5 billion for the nine months ended September 30, 2024, compared with investment income of $1.0 billion for the nine months ended September 30, 2023. The increase for the nine months ended September 30, 2024 was primarily the result of an increase of $277 million of income from fixed maturity investments, an increase of $86 million in limited partnership income, an increase of $43 million from short-term investments and an increase of $43 million in income from other alternative investments. The limited partnership income primarily reflects changes in reported net asset values. As such, until these asset values are monetized and the resultant income is distributed, they are subject to volatile results of future increases or decreases in the asset value.
Current wording
Net investment income increased by 7.5% to $491 million for the three months ended March 31, 2025, compared with net investment income of $457 million for the three months ended March 31, 2024. The increase for the three months ended March 31, 2025 was primarily the result of an increase of $34 million in income from fixed maturity investments, an increase of $11 million in short-term investments and an increase of $10 million in income from other invested assets, partially offset by a decline of $30 million in limited partnership income. The limited partnership income primarily reflects changes in their reported net asset values. As such, until these asset values are monetized and the resultant income is distributed, they are subject to volatile results of future increases or decreases in the asset value.
Previous wording
Total net gains (losses) on investments during the nine months ended September 30, 2024 primarily relate to $45 million of net losses due to the disposition of investments, $3 million of losses from fair value adjustments on equity securities as a result of equity market deterioration and an increase to the allowance for credit losses of $3 million.
Current wording
Net gains (losses) on investments during the three months ended March 31, 2025 primarily relate to $5 million of losses due to the disposition of investments, $2 million of losses from fair value adjustments on equity securities and an increase to the allowance for credit losses of $1 million.
Previous wording
Our two operating segments each have executive leaders who are responsible for the overall performance of their respective segments and who are directly accountable to our chief operating decision maker (“CODM”), the Chief Executive Officer of Everest Group, Ltd., who is ultimately responsible for reviewing the business to assess performance, make operating decisions and allocate resources. We report the results of our operations consistent with the manner in which our CODM reviews the business.
Current wording
Our two reportable segments, Reinsurance and Insurance, each have executive leadership who are responsible for the overall performance of their respective segments and who are directly accountable to our chief operating decision maker (“CODM”), the Chief Executive Officer of Everest Group, Ltd., who is ultimately responsible for reviewing the business to assess performance, make operating decisions and allocate resources. We report the results of our operations consistent with the manner in which our CODM reviews the business.
Previous wording
The Company does not review and evaluate the financial results of its operating segments based upon balance sheet data. Management generally monitors and evaluates the financial performance of these operating segments based upon their underwriting results. Underwriting results include earned premium less losses and LAE incurred, commission and brokerage expenses and other underwriting expenses. The Company measures its underwriting results using ratios, in particular, loss, commission and brokerage and other underwriting expense ratios, which, respectively, divide incurred losses, commissions and brokerage and other underwriting expenses by premiums earned. Management has determined that these measures are appropriate and align with how the business is managed. We continue to evaluate our segments as our business evolves and may further refine our segments and financial performance measures.
Current wording
The Company does not review and evaluate the financial results of its segments based upon balance sheet data. Management generally monitors and evaluates the financial performance of these segments based upon their underwriting results. Underwriting results include earned premium less losses and LAE incurred, commission and brokerage expenses and other underwriting expenses. The Company measures its underwriting results using ratios, in particular, loss, commission and brokerage and other underwriting expense ratios, which, respectively, divide incurred losses, commissions and brokerage and other underwriting expenses by premiums earned. Management has determined that these measures are appropriate and align with how the business is managed. We continue to evaluate our segments as our business evolves and may further refine our segments and financial performance measures.
Previous wording
Premiums. Gross written premiums increased by 2.1% to $3.3 billion for the three months ended September 30, 2024 from $3.2 billion for the three months ended September 30, 2023, primarily driven by property pro rata and property catastrophe excess of loss lines of business, partially offset by actions taken on our North America casualty business. Gross written premiums increased by 12.7% to $9.6 billion for the nine months ended September 30, 2024 from $8.6 billion for the nine months ended September 30, 2023, primarily due to property and casualty pro rata and property catastrophe excess of loss lines of business.
Current wording
Premiums. Gross written premiums increased by 1.4% to $3.2 billion for the three months ended March 31, 2025 from $3.2 billion for the three months ended March 31, 2024, primarily due to property catastrophe excess of loss business and property pro rata business, partially offset by actions taken on our North America casualty business.
Previous wording
Segment Expenses. Commission and brokerage expense increased by 10.4% to $710 million for the three months ended September 30, 2024, compared to $643 million for the three months ended September 30, 2023. Commission and brokerage expense increased by 15.5% to $2.1 billion for the nine months ended September 30, 2024, compared to $1.8 billion for the nine months ended September 30, 2023. The increases were mainly due to the impact of the increase in premiums earned and changes in the mix of business.
Current wording
Segment Expenses. Commission and brokerage expense increased by 5.4% to $707 million for the three months ended March 31, 2025, compared to $671 million for the three months ended March 31, 2024. The increase was mainly due to the impact of the increase in premiums earned. Segment other underwriting expenses remained consistent at $71 million for both the three months ended March 31, 2025 and the three months ended March 31, 2024.
Previous wording
Premiums. Gross written premiums decreased by 2.8% to $1.2 billion for the three months ended September 30, 2024, compared to $1.2 billion for the three months ended September 30, 2023. The decrease in insurance premiums was primarily due to portfolio actions taken on accident and health and specialty casualty lines of business, partially offset by an increase in property/short tail business and specialty lines of business. Gross written premiums increased by 4.3% to $3.9 billion for the nine months ended September 30, 2024, compared to $3.7 billion for the nine months ended September 30, 2023. The increase in insurance premiums was primarily due to increases in property/short tail business and specialty lines of business, partially offset by portfolio actions taken on accident and health and workers’ compensation lines of business.
Current wording
Premiums. Gross written premiums decreased by 1.3% to $1.1 billion for the three months ended March 31, 2025, compared to $1.2 billion for the three months ended March 31, 2024. The decrease in insurance premiums was primarily due to portfolio actions taken on North America casualty lines and workers’ compensation lines, partially offset by an increase in property/short tail business and other specialty business.
Previous wording
Premiums earned increased by 2.9% to $948 million for the three months ended September 30, 2024, compared to $920 million for the three months ended September 30, 2023. Premiums earned increased by 5.6% to $2.8 billion for the nine months ended September 30, 2024, compared to $2.7 billion for the nine months ended September 30, 2023. The change in premiums earned relative to net written premiums is the result of timing; premiums are earned ratably over the coverage period, whereas written premiums are recorded at the initiation of the coverage period.
Current wording
Premiums earned increased by 4.9% to $913 million for the three months ended March 31, 2025, compared to $871 million for the three months ended March 31, 2024. The change in premiums earned relative to net written premiums is the result of timing; premiums are earned ratably over the coverage period, whereas written premiums are generally recorded at the initiation of the coverage period.
Previous wording
Segment other underwriting expenses increased to $163 million for the three months ended September 30, 2024, compared to $151 million for the three months ended September 30, 2023. Segment other underwriting expenses increased to $478 million for the nine months ended September 30, 2024, compared to $431 million for the nine months ended September 30, 2023. These increases were mainly due to the impact of the increase in premiums earned and increased expenses related to the continued investment of the international insurance platform.
Current wording
Segment Expenses. Commission and brokerage increased by 8.3% to $113 million for the three months ended March 31, 2025, compared to $104 million for the three months ended March 31, 2024. Segment other underwriting expenses increased to $165 million for the three months ended March 31, 2025, compared to $145 million for the three months ended March 31, 2024. The increases were mainly due to the impact of the increase in premiums earned and increased expenses related to the expansion of the international insurance platform.
Previous wording
Investments. Total investments were $40.5 billion at September 30, 2024, an increase of $4.8 billion compared to $35.7 billion at December 31, 2023. The rise in investments was primarily related to an increase in fixed maturities - available for sale due to an overall net purchase of $2.1 billion of fixed maturities - available for sale during the nine months ended September 30, 2024.
Current wording
Investments. Total investments were $41.1 billion at March 31, 2025, an increase of $1.1 billion compared to $40.0 billion at December 31, 2024. The rise in investments was primarily related to an increase in fixed maturities - available for sale due to an overall net purchase of $2.4 billion, partially offset by a decrease in short-term investment due to an overall net sale of $1.8 billion during the three months ended March 31, 2025.
Previous wording
Reinsurance recoverables for both paid and unpaid losses totaled $2.5 billion and $2.3 billion at September 30, 2024 and December 31, 2023, respectively. At September 30, 2024, $416 million, or 16.5%, was receivable from Mt. Logan Re collateralized segregated accounts; $250 million, or 10.0%, was receivable from Munich Reinsurance America, Inc. and $187 million, or 7.4% was receivable from Endurance Specialty Holdings, Ltd. No other retrocessionaire accounted for more than 5% of our recoverables.
Current wording
Reinsurance recoverables for both paid and unpaid losses totaled $3.6 billion and $3.1 billion at March 31, 2025 and December 31, 2024, respectively. At March 31, 2025, $482 million, or 13.6%, was receivable from Mt. Logan Re collateralized segregated accounts; $352 million, or 9.9%, was receivable from Munich Reinsurance America, Inc. and $247 million, or 7.0% was receivable from Endurance Assurance Corporation. No other retrocessionaire accounted for more than 5% of our recoverables.
Previous wording
Loss and LAE Reserves. Gross loss and LAE reserves totaled $27.5 billion and $24.6 billion at September 30, 2024 and December 31, 2023, respectively.
Current wording
Loss and LAE Reserves. Gross loss and LAE reserves totaled $31.5 billion and $29.9 billion at March 31, 2025 and December 31, 2024, respectively.
Previous wording
The following tables summarize gross outstanding loss and LAE reserves by segment, classified by case reserves and IBNR reserves, for the periods indicated.
Current wording
The following tables summarize gross outstanding loss and LAE reserves by segment, classified by case reserves and Incurred But Not Reported (“IBNR”) reserves, for the periods indicated.
Previous wording
Asbestos and Environmental Exposures. Asbestos and Environmental (“A&E”) exposures represent a separate exposure group for monitoring and evaluating reserve adequacy. The following table summarizes the outstanding loss reserves with respect to A&E reserves on both a gross and net of retrocessions basis for the periods indicated.
Current wording
Asbestos and Environmental Exposures. A&E exposures represent a separate exposure group for monitoring and evaluating reserve adequacy. The results of run-off A&E exposures are included within the Company’s Other segment. The following table summarizes the outstanding loss reserves with respect to A&E reserves on both a gross and net of retrocessions basis for the periods indicated.
Previous wording
With respect to asbestos only, at September 30, 2024, we had net asbestos loss reserves of $184 million, or 90.4%, of total net A&E reserves, all of which was for assumed business.
Current wording
With respect to asbestos only, at March 31, 2025, we had net asbestos loss reserves of $206 million, or 88.7%, of total net A&E reserves, all of which was for assumed business. At March 31, 2025, we had gross asbestos loss reserves of $224 million, or 89.4% of total gross A&E reserves, all of which was for assumed business.
Previous wording
Industry analysts use the “survival ratio” to compare the A&E reserves among companies with such liabilities. The survival ratio is typically calculated by dividing a company’s current net reserves by the three-year average of annual paid losses. Hence, the survival ratio equals the number of years that it would take to exhaust the current reserves if future loss payments were to continue at historical levels. Using this measurement, our net three-year asbestos survival ratio was 5.8 years at September 30, 2024. These metrics can be skewed by individual large settlements occurring in the prior three years and therefore may not be indicative of the timing of future payments.
Current wording
Industry analysts use the “survival ratio” to compare the A&E reserves among companies with such liabilities. The survival ratio is typically calculated by dividing a company’s current net reserves by the three-year average of annual paid losses. Hence, the survival ratio equals the number of years that it would take to exhaust the current reserves if future loss payments were to continue at historical levels. Using this measurement, our net three-year asbestos survival ratio was 7.1 years at March 31, 2025. These metrics can be skewed by individual large settlements occurring in the prior three years and therefore may not be indicative of the timing of future payments.
Previous wording
Capital. Shareholders’ equity at September 30, 2024 and December 31, 2023 was $15.3 billion and $13.2 billion, respectively. Management’s objective in managing capital is to ensure that the Company’s overall capital level, as well as the capital levels of its operating subsidiaries, exceed the amounts required by regulators, the amount needed to support our current financial strength ratings from rating agencies and our own economic capital models. The Company’s capital has historically exceeded these benchmark levels.
Current wording
Capital. Shareholders’ equity at March 31, 2025 and December 31, 2024 was $14.1 billion and $13.9 billion, respectively. Management’s objective in managing capital is to ensure that the Company’s overall capital level, as well as the capital levels of its operating subsidiaries, exceed the amounts required by regulators, the amount needed to support our current financial strength ratings from rating agencies and our own economic capital models. The Company’s capital has historically exceeded these benchmark levels.
Previous wording
Our financial strength ratings, as determined by A.M. Best, Standard & Poor’s and Moody’s, are important, as they provide our customers and investors with an independent assessment of our financial strength using a rating scale that provides for relative comparisons. We continue to possess significant financial flexibility and access to debt and equity markets as a result of our financial strength, as evidenced by the financial strength ratings assigned by independent rating agencies.
Current wording
Our financial strength ratings, as determined by A.M. Best, S&P and Moody’s, are important, as they provide our customers and investors with an independent assessment of our financial strength using a rating scale that provides for relative comparisons. We continue to possess significant financial flexibility and access to debt and equity markets as a result of our financial strength, as evidenced by the financial strength ratings assigned by independent rating agencies.
Previous wording
For the nine months ended September 30, 2024, we repurchased 536,469 of our common shares at a cost of $200 million in the open market. During this period, we paid $249 million in common share dividends to adjust our capital position and enhance long-term expected returns to our shareholders. During 2023, we repurchased no shares in the open market and paid $288 million in dividends. On May 22, 2020, our existing Board authorization to purchase up to 30 million of our shares was amended to authorize the purchase of up to 32 million shares. As of September 30, 2024, we had repurchased 31.3 million shares under this authorization. During the third quarter of 2024, the Company’s Board of Directors declared a quarterly common stock dividend of $2.00 per share. The common stock dividend was paid on September 27, 2024 for holders of record as of September 16, 2024. We paid $86 million in dividends during the third quarter of 2024.
Current wording
For the three months ended March 31, 2025, we repurchased 574,000 of our common shares at a cost of $200 million in the open market and paid $85 million in common share dividends to enhance long-term expected returns to our shareholders. During fiscal year 2024, we repurchased 536,469 of our common shares at a cost of $200 million in the open market and paid $334 million in common share dividends. From time to time, we may enter into a Rule 10b5-1 repurchase plan to facilitate the repurchase of shares, repurchase shares in open market transactions, privately negotiated transactions or otherwise. On November 7, 2024, our existing Board authorization to purchase up to 32 million of our shares was increased by 10 million shares to authorize the purchase of up to 42 million shares. As of March 31, 2025, we had repurchased 31.9 million shares under this authorization. During the first quarter of 2025, the Company’s Board of Directors declared a quarterly common stock dividend of $2.00 per share. The common stock dividend was paid on March 28, 2025 for holders of record as of March 17, 2025.
Previous wording
Liquidity. Our liquidity requirements are generally met from positive cash flow from operations. Positive cash flow results from reinsurance and insurance premiums being collected prior to disbursements for claims, with disbursements generally taking place over an extended period after the collection of premiums, sometimes a period of many years. Collected premiums are generally invested, prior to their use in such disbursements, and investment income provides additional funding for loss payments. Our net cash flows from operating activities were $4.2 billion and $3.5 billion for the nine months ended September 30, 2024 and 2023, respectively. Additionally, these cash flows reflected net catastrophe loss payments of $506 million and $651 million for the nine months ended September 30, 2024 and 2023, respectively, and net tax payments of $340 million and $185 million for the nine months ended September 30, 2024 and 2023, respectively.
Current wording
Liquidity. Our liquidity requirements are generally met from positive cash flow from operations. Positive cash flow results from reinsurance and insurance premiums being collected prior to disbursements for claims, with disbursements generally taking place over an extended period after the collection of premiums, sometimes a period of many years. Collected premiums are generally invested, prior to their use in such disbursements, and investment income provides additional funding for loss payments. Our net cash flows from operating activities were $928 million and $1.1 billion for the three months ended March 31, 2025 and 2024, respectively. Additionally, these cash flows reflected net catastrophe loss payments of $317 million and $229 million for the three months ended March 31, 2025 and 2024, respectively, and net tax payments of $1 million and $16 million for the three months ended March 31, 2025 and 2024, respectively.
Previous wording
As the timing of payments for losses and LAE cannot be predicted with certainty, we maintain portfolios of long-term invested assets with varying maturities, along with short-term investments that provide additional liquidity for payment of claims. At September 30, 2024 and December 31, 2023, we held cash and short-term investments of $5.5 billion and $3.6 billion, respectively. Our short-term investments are generally readily marketable and can be converted to cash. In addition to these cash and short-term investments, at September 30, 2024, we had $1.0 billion of fixed maturity securities - available for sale maturing within one year or less, $8.7 billion maturing within one to five years and $8.0 billion maturing after five years. We believe that these fixed maturity securities, in conjunction with the short-term investments and positive cash flow from operations, provide ample sources of liquidity for the expected payment of losses and LAE in the near future. We do not anticipate selling a significant amount of securities to pay losses and LAE. At September 30, 2024, we had $223 million of net pre-tax unrealized depreciation related to fixed maturity - available for sale securities, comprised of $793 million of pre-tax unrealized depreciation and $570 million of pre-tax unrealized appreciation.
Current wording
As the timing of payments for losses and LAE cannot be predicted with certainty, we maintain portfolios of long-term invested assets with varying maturities, along with short-term investments that provide additional liquidity for payment of claims. At March 31, 2025 and December 31, 2024, we held cash and short-term investments of $4.5 billion and $6.3 billion, respectively. Our short-term investments are generally readily marketable and can be converted to cash. In addition to these cash and short-term investments, at March 31, 2025, we had $1.1 billion of fixed maturity securities - available for sale maturing within one year or less, $10.6 billion maturing within one to five years and $6.7 billion maturing after five years. We believe that these fixed maturity securities, in conjunction with the short-term investments and positive cash flow from operations, provide ample sources of liquidity for the expected payment of losses and LAE in the near future. We do not anticipate selling a significant amount of securities to pay losses and LAE. At March 31, 2025, we had $645 million of net pre-tax unrealized depreciation related to fixed maturity - available for sale securities, comprised of $921 million of pre-tax unrealized depreciation and $277 million of pre-tax unrealized appreciation.
Previous wording
Management generally expects annual positive cash flow from operations, which reflects the strength of overall pricing. However, given catastrophic events observed in recent periods, cash flow from operations may decline and could become negative in the near term as significant claim payments are made related to the catastrophes. However, as indicated above, the Company has access to ample liquidity to settle its catastrophe claims and also may receive payments under the catastrophe bond program and the Mt. Logan Re collateralized reinsurance arrangement.
Current wording
Management generally expects annual positive cash flow from operations. However, given catastrophic events observed in recent periods, cash flow from operations may decline and could become negative in the near term as significant claim payments are made related to the catastrophes. However, as indicated above, the Company has access to ample liquidity to settle its catastrophe claims and also may receive payments under the catastrophe bond program and the Mt. Logan Re collateralized reinsurance arrangement.
Previous wording
In addition to our cash flows from operations and liquid investments, Everest Reinsurance Company (“Everest Re”) is a member of the Federal Home Loan Bank of New York (“FHLBNY”), which allows Everest Re to borrow up to 10% of its statutory admitted assets. As of September 30, 2024, Everest Re had statutory admitted assets of approximately $29.2 billion which provides borrowing capacity of up to approximately $2.9 billion. As of September 30, 2024, Everest Re had $819 million of borrowings outstanding, which begin to expire in 2024. See Note 7 – Credit Facilities to the Notes to the consolidated financial statements in Part I, Item I of this Form 10-Q for further details.
Current wording
In addition to our cash flows from operations and liquid investments, Everest Re is a member of the Federal Home Loan Bank of New York (“FHLBNY”), which allows Everest Re to borrow up to 10% of its statutory admitted assets. As of March 31, 2025, Everest Re had statutory admitted assets of approximately $31.4 billion which provides borrowing capacity of up to approximately $3.1 billion. As of March 31, 2025, Everest Re had $1.0 billion of borrowings outstanding, which begin to expire in 2025. See Note 7 – Credit Facilities to the Notes to the consolidated financial statements in Part I, Item I of this Form 10-Q for further details.
Previous wording
The Securities and Exchange Commission’s (“SEC”) Financial Reporting Release #48 requires registrants to clarify and expand upon the existing financial statement disclosure requirements for derivative financial instruments, derivative commodity instruments and other financial instruments (collectively, “market sensitive instruments”). We do not generally enter into market sensitive instruments for trading purposes.
Current wording
U.S. Securities and Exchange Commission (the “SEC”) Registrants are required to clarify and expand upon the existing financial statement disclosure requirements for derivative financial instruments, derivative commodity instruments and other financial instruments (collectively, “market sensitive instruments”). We do not generally enter into market sensitive instruments for trading purposes.
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