Everest records net income of $1.4bn in fiscal year 2024
Bermudian-based Everest Group Ltd has reported annual net income of $1.4 billion and net operating income of $1.3 billion for the 2024 fiscal year.
Announcing its full-year and fourth-quarter results, the company reported a quarterly net loss of $593 million and a net operating loss of $780 million driven primarily by net unfavourable development of prior year loss reserves in US casualty lines.
For the full year, Everest reported a total shareholder return of 9.2 per cent.
The company recorded $18.2 billion in gross written premium with year-over-year growth of 9.1 per cent for the group, 12.2 per cent for reinsurance, and 4 per cent for insurance on a comparable basis.
Combined ratios were 102.3 per cent for the group, 89.7 per cent for reinsurance and 130.7 per cent for insurance, which the company said included decisive actions to strengthen US casualty reserves.
Everest reported $672 million of pre-tax catastrophe losses net of recoveries and reinstatement premiums, versus $451 million in the prior year.
Net investment income increased more than $500 million to approximately $2 billion, a company record.
Operating cashflow for the year was $5 billion, another company record.
For the fourth quarter, Everest reported combined ratios of 135.5 per cent for the group, 90.4 per cent for reinsurance and 239.2 per cent for insurance, which includes decisive actions to strengthen US casualty reserves.
The company reported net unfavourable development of approximately $1.5 billion in prior year loss reserves, resulting in an increase of 37.6 points on the combined ratio for the group.
Operating cashflow for the quarter was $780 million compared with $1 billion in the prior year fourth quarter.
“This was a pivotal year for Everest as we took decisive action to fortify our US casualty reserves, solidify our franchise value, and raise the bar across all facets of the company,” said Jim Williamson, Everest president and chief executive.
“Our lead market reinsurance franchise continues to demonstrate its value in the market, as evidenced by another well-executed January 1 renewal.
“In our insurance business, the significant transformation of our North America insurance platform is well under way. We made meaningful progress improving our portfolio, all while taking aggressive underwriting action in US casualty lines.
“Our team is energised about the opportunity ahead and I firmly believe that our actions place Everest on a clear trajectory towards generating attractive returns throughout the cycle.”
• For the full earnings report, see Related Media
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