NYSE$EG

Everest Group Ltd · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Everest reported excellent Q3 2023 results, delivering outstanding returns with a near 20% operating return on equity and an annualized 25% total shareholder return.

Everest Group reported a strong third quarter in 2023, marked by significant growth in gross written premiums, particularly in the reinsurance segment, and improved underwriting margins. The company's net income reached $678 million, and operating income was $613 million, driven by underwriting improvements and strong investment income.

  • Net income of $678 million and operating income of $613 million.
  • Gross written premium grew by 23.4% year-over-year to $4.4 billion.
  • Combined ratio improved to 91.4%, driven by better pricing and lower catastrophe losses.
  • Net investment income increased to $406 million.

Headline financials

Total Revenue

$3.99B

Previous: $3.07B+29.9%
EPS (adj)

$14.14

Previous: -$5.28+367.8%
Combined Ratio

91.4%

Previous: 112.0%-18.4%
Attritional Combined Ratio

86.5%

No prior period
Free Cash Flow

$678M

Previous: -$319M+312.5%
Net Income

$678M

Previous: -$319M+312.5%
Operating Income

$877M

Previous: -$379M+331.4%
Gross Profit

$1.75B

Previous: $450M+287.8%
Cash & Equivalents

$1.77B

Previous: $1.68B+5.1%
Total Assets

$46.3B

Previous: $38.1B+21.4%
Stock-Based Comp

$12M

Previous: $11.1M+8.3%

Revenue & EPS history

Everest · Revenue · Quarterly

$3.99B

Q3 2023+29.9%vs Q3 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 has significant momentum heading into the final quarter of the year, with strong tailwinds and exceptional talent powering disciplined execution and industry-leading shareholder returns.

Tailwinds

  • Favorable conditions and the global flight to quality persist in the hard reinsurance market.
  • Well-positioned for the upcoming January renewals as a lead market and preferred partner.
  • Expanding global reinsurance portfolio at significantly improved risk adjusted returns.
  • Primary insurance business continues to generate strong and consistent underwriting income, with a significant year-over-year improvement.
  • High-quality investment portfolio continues to deliver outstanding returns, generating over $400 million in net investment income in the quarter, and over $1 billion year-to-date.

Headwinds

  • General economic conditions
  • Conditions affecting the insurance and reinsurance industry
  • Adequacy of reserves
  • Ability to assess underwriting risk
  • Trends in rates for property and casualty insurance and reinsurance

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 Q3 2023

Historical avgQ3 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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