Everest Group releases Q3 2023 earnings

Everest Group releases Q3 2023 earnings | Insurance Business Asia

Insurance News

Everest Group releases Q3 2023 earnings

President and CEO points to “excellent” performance

Insurance News

By
Terry Gangcuangco

Everest Group has had an “excellent” third quarter in terms of financial results, according to president and chief executive Juan C. Andrade.

The underwriting group reported the following numbers for the three months and nine months ended September 30, 2023:

Metric

Q3 2023

Q3 2022

9M 2023

9M 2022

Gross written premium

US$4.39 billion

US$3.68 billion

US$12.31 billion

US$10.31 billion

Net income / (loss)

US$678 million

US$(319 million)

US$1.71 billion

US$101 million

Operating income / (loss)

US$613 million

US$(205 million)

US$1.68 billion

US$587 million

The company’s operating income in Q3 was attributed to continued underwriting margin improvement and strong net investment income generation. Pre-tax underwriting income in the period amounted to US$301 million – a major turnaround from 2022’s US$367 million in pre-tax underwriting loss.

Commenting on the results, Andrade said in a release: “Everest’s third quarter performance was excellent. We delivered outstanding returns including a near 20% operating return on equity and an annualised 25% total shareholder return. We are leaning into the hard reinsurance market, where favourable conditions and the global flight to quality persist.

“As a lead market and preferred partner, we are well-positioned for the upcoming January renewals. We continue to expand our global reinsurance portfolio at significantly improved risk adjusted returns. In addition, our primary insurance business continues to generate strong and consistent underwriting income, with a significant year-over-year improvement.”

The CEO also pointed to the insurer’s quarterly net investment income worth over US$400 million; year-to-date, more than US$1 billion.

He added: “We have significant momentum heading into the final quarter of the year, with strong tailwinds and exceptional talent powering our disciplined execution and industry-leading shareholder returns.”

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