Bermudian-based Everest Group Ltd expects to report full-year 2024 net income in the range of $1.3 billion to $1.4 billion, the company revealed as it announced preliminary commentary on its full-year and fourth quarter 2024 results.

Everest is to announce its FY24 and quarterly earnings next Monday.

The company said it expects to report full-year non-GAAP net operating income in the range of $1.2 billion to $1.3 billion.

Everest said those results are inclusive of unfavourable development of prior-year loss reserves of $1.5 billion.

After current accident year strengthening of $229 million, total strengthening is $1.7 billion for the full-year and fourth quarter 2024, the company said.

In Everest’s reinsurance segment, the company strengthened prior year US casualty reserves by $684 million for the full-year and fourth quarter 2024.

The company said the reserve strengthening was fully offset by favourable development of well-seasoned reserves in property and mortgage lines.

In the company’s insurance segment, Everest strengthened prior year US casualty reserves by $1.1 billion and increased current accident year losses in US casualty lines by $206 million, totalling $1.3 billion for the full-year and fourth quarter 2024.

The company said the reserve strengthening was driven by a combination of social inflation and portfolio concentrations in certain US casualty lines classes.

As disclosed in an 8-K filed with the US Securities and Exchange Commission after the market close on Monday, Everest formed a new “other” segment, primarily comprised of certain sports and leisure lines after giving effect to the sale of the business in October 2024, run-off asbestos and environmental exposures, and certain discontinued insurance programmes and coverage classes.

Everest said unfavourable development in the company’s other segment amounted to $425 million for both the full-year and fourth quarter 2024.

The company also announced its new target objective to deliver a mid-teens total shareholder return over the cycle. It will no longer be providing detailed forward guidance.

“Our decisive actions this quarter follow a comprehensive reserve review. As a result of these actions, our casualty reserves are positioned with a risk margin above the actuarial central estimate,” said Jim Williamson, Everest president and chief executive.

“The company has significantly fortified its US casualty reserves, while taking aggressive underwriting action in certain classes exposed to social inflation, bolstering talent, and investing in our platform.

“We believe these actions strengthen our balance sheet and put Everest on a clear trajectory towards generating attractive returns throughout the cycle.”