NYSE$EG

Everest Group Ltd · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Everest reported record operating income and strong premium growth, driven by favorable market conditions and underwriting discipline.

Everest Group reported a strong second quarter in 2023, with record operating income of $627 million and net income of $670 million. The company experienced significant growth in gross written premiums, particularly in reinsurance, and improved its combined ratio. Strong investment income and operating cash flow contributed to the positive results.

  • Record operating income of $627 million and net income of $670 million.
  • GWP grew by 22.3%, led by reinsurance growth of 26.9%.
  • Combined ratio improved to 87.7%, driven by better pricing and lower catastrophe losses.
  • Net investment income increased to $357 million, supported by strong fixed income and alternative investment returns.

Headline financials

Total Revenue

$3.65B

Previous: $2.83B+28.8%
EPS (adj)

$15.21

Previous: $9.79+55.4%
Combined Ratio

87.7%

Previous: 91.8%-4.5%
Free Cash Flow

$670M

Previous: $123M+446.4%
Net Income

$670M

Previous: $123M+446.4%
Operating Income

$833M

Previous: $85.3M+876.8%
Gross Profit

$1.69B

Previous: $958M+76.3%
Cash & Equivalents

$2.07B

Previous: $2.12B-2.3%
Total Assets

$44.7B

Previous: $37.9B+17.8%
Stock-Based Comp

$13M

Previous: $11.9M+9.1%

Revenue & EPS history

Everest · Revenue · Quarterly

$3.65B

Q2 2023+28.8%vs Q2 2022
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

Everest · $2.4B total across 2 segments · Q4 2019

  • Reinsurance
    $1.64B
  • Insurance
    $759M

Forward guidance

Everest anticipates favorable market conditions to persist into 2024, expecting to capitalize on abundant market opportunities through its diversified platform and underwriting discipline.

Tailwinds

  • Continued premium growth.
  • Expanding margins.
  • Strong underwriting profits.
  • Lead market position in reinsurance.
  • Firming rates in primary insurance.

Headwinds

  • Impact of general economic conditions.
  • Conditions affecting the insurance and reinsurance industry.
  • Adequacy of reserves.
  • Ability to assess underwriting risk.
  • Competition.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.2%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+2.0%

Avg return

30 days after

57%

39 / 68 earnings

Positive

+8.4%

Q1 2011

Best reaction

-11.4%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.9%+1.6%-5.9%
Q4 2025-2.3%-0.9%+0.2%
Q3 2025-11.4%-8.6%-9.3%
Q1 2025-6.0%-4.0%-3.2%
Q4 2024-1.5%-2.1%+5.3%
Q3 2024-5.6%-7.7%+2.9%
Q2 2024-5.4%-8.5%+0.7%
Q1 2024+0.5%+1.4%+4.9%
Q4 2023-6.8%-5.2%-3.4%
Q3 2023-3.5%-1.1%+4.3%
Q2 2023-2.4%-1.7%-3.7%
Q1 2023+1.1%-0.7%-10.0%
Q4 2022+6.6%+7.6%+0.5%
Q3 2022+6.6%+14.0%+18.1%
Q2 2022-5.0%-7.2%+0.4%
Q1 2022+1.5%-0.4%+2.3%
Q4 2021+0.4%+0.9%-6.5%
Q3 2021-6.7%-7.4%-6.4%
Q2 2021+1.0%+4.0%+9.3%
Q1 2021+2.0%+1.9%-2.7%
Q4 2020+6.2%+11.0%+14.0%
Q3 2020+0.4%+9.9%+19.0%
Q2 2020+3.0%+6.8%-0.7%
Q1 2020+3.6%+6.7%+34.8%
Q4 2019+3.2%+3.1%-19.3%
Q3 2019+3.1%+4.3%+9.7%
Q2 2019-3.0%-6.3%-7.7%
Q1 2019+3.4%+4.2%+6.1%
Q4 2018-4.2%-2.2%-1.6%
Q3 2018+7.1%+7.0%+5.6%
Q2 2018-3.5%-2.4%-1.5%
Q1 2018-5.2%-4.9%-7.0%
Q4 2017+5.5%+4.4%+11.3%
Q3 2017+0.2%-3.8%-6.0%
Q2 2017-1.3%-3.8%-2.7%
Q1 2017+7.8%+7.7%+5.9%
Q4 2016+2.8%+4.1%+5.2%
Q3 2016+4.6%+4.2%+8.7%
Q2 2016+1.9%+4.3%+4.5%
Q1 2016-3.9%
Q4 2015+3.3%
Q3 2015+1.3%
Q2 2015-3.9%
Q1 2015-0.6%
Q4 2014+3.2%
Q3 2014-1.0%
Q2 2014-0.5%
Q1 2014-0.5%
Q4 2013-3.3%
Q3 2013-4.4%
Q2 2013-0.8%
Q1 2013+4.8%
Q4 2012+0.8%
Q3 2012+3.2%
Q2 2012+1.5%
Q1 2012+1.0%
Q4 2011+2.1%
Q3 2011-3.3%
Q2 2011+4.0%
Q1 2010-0.6%
Q1 2011+8.4%
Q4 2010-1.4%
Q4 2008-1.4%
Q3 2010+0.5%
Q3 2009+0.5%
Q2 2010+2.1%
Q4 2009+2.1%
Q2 2009+2.1%

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