Bermudian-based Everest Group Ltd has reported record annual net income of $2.5 billion and operating income of $2.8 billion for the 2023 fiscal year.

Announcing the results, the company said that during the fourth quarter it recognised a $578 million tax benefit from realised deferred taxes accrued driven by the change in Bermuda tax law.

In December, the island enacted a 15 per cent corporate income tax that will generally become effective on January 1, 2025.

Everest said: “This is a preliminary estimate and subject to change.”

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

Juan C Andrade, Everest president and chief executive, said: “Everest's strong fourth quarter performance capped off an exceptional 2023, delivering record annual results in underwriting income, net investment income, operating income, net income, and cash flow from operations.

“We executed on our strategic objectives, while delivering an operating ROE [return on equity] of over 23 per cent and a total shareholder return of over 26 per cent for the full year."

He added: "2023 was the most profitable year in our history. The Everest of today is a stronger and more sophisticated company. We are delivering leading financial returns and we are on track to achieve the targets we set out at our most recent Investor Day.

“The strength and flexibility of our business was apparent in the fourth quarter as we continued to generate leading returns and further solidified our balance sheet.

“Everest has entered 2024 stronger and better positioned to take advantage of market opportunities in both franchises. This is evidenced by another well-executed and outstanding January 1 reinsurance renewal and improved primary pricing, generating excellent outcomes for our global portfolio.

“Looking ahead, we remain focused on achieving our strategic plan goals, with significant momentum across both businesses and an exceptional team driving even greater value for our shareholders."

For the full year, Everest reported $16.6 billion in gross written premium with year-over-year growth of 20.9 per cent as reported for the group, 26.4 per cent for reinsurance and 10.3 per cent for insurance.

Combined ratios were 90.9 per cent for the group, 86.4 per cent for reinsurance and 103 per cent for insurance.

Everest reported $451 million of pre-tax catastrophe losses net of recoveries and reinstatement premiums, versus $945 million in the prior year.

Net investment income increased more than $600 million to $1.4 billion, a company record.

Everest had operating cash flow for the year of $4.6 billion, a company record.

In the fourth quarter, Everest reported $4.3 billion in gross written premium with year-over-year growth of 18.3 per cent for the group, 21.9 per cent for reinsurance, and 11.6 per cent for insurance.

Combined ratios were 93.2 per cent for the group, 78.8 per cent for reinsurance and 132.4 per cent for insurance.

The company reported $143 million of pre-tax catastrophe losses net of recoveries and reinstatement premiums, primarily driven by Hurricane Otis - the Category 5 hurricane that hit the Pacific Coast of Mexico last October - versus $15 million in the prior year.

Net investment income improved to $411 million versus $210 million in the prior year fourth quarter, a company record, driven by strong fixed income and alternative investment returns, the company said.

Everest had operating cash flow for the quarter of $1 billion.