EVEREST RE GROUP, LTD. INVESTOR PRESENTATION FI RS T Q UA RT E R 2 - - PowerPoint PPT Presentation

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EVEREST RE GROUP, LTD. INVESTOR PRESENTATION FI RS T Q UA RT E R 2 - - PowerPoint PPT Presentation

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EVEREST RE GROUP, LTD. INVESTOR PRESENTATION FI RS T Q UA RT E R 2 0 1 7 EVEREST RE GROUP, LTD SEON PLACE, 141 FRONT STREET, 4TH FLOOR HAMILTON HM 19, BERMUDA Cautionary Note on Forward-looking Statements This presentation contains

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SLIDE 1

EVEREST RE GROUP, LTD • SEON PLACE, 141 FRONT STREET, 4TH FLOOR • HAMILTON HM 19, BERMUDA

EVEREST RE GROUP, LTD.

INVESTOR PRESENTATION

FI RS T Q UA RT E R 2 0 1 7

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SLIDE 2

EVEREST RE GROUP, LTD. 2

This presentation contains forward-looking statements within the meaning of the U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. Federal securities

  • laws. These statements involve risks and uncertainties that could cause actual results to

differ materially from those contained in forward-looking statements made on behalf of the company. These risks and uncertainties include the impact of general economic conditions and conditions affecting the insurance and reinsurance industry, the adequacy

  • f our reserves, our ability to assess underwriting risk, trends in rates for property and

casualty insurance and reinsurance, competition, investment market fluctuations, trends in insured and paid losses, catastrophes, regulatory and legal uncertainties and other factors described in our latest Annual Report on Form 10-K. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Cautionary Note on Forward-looking Statements

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SLIDE 3

EVEREST RE GROUP, LTD. 3

Everest Re Group is a worldwide multi-line reinsurance and insurance organization. Our key objectives are to:

  • Maximize book value per common share over time, and
  • Achieve returns that provide a double-digit compound annual

growth rate in shareholder value.

Corporate Objectives

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SLIDE 4

13% 11% 8% 9% 5% 9% 7% 7% 8% 4% 7% 15% 12% 11% 11% 10% 10% 10% 9% 8% 7% 6% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% RE CB RNR VR AHL ACGL ENH Peer Average AXS XL AWH

Operating ROE

2016 2015

EVEREST RE GROUP, LTD. 4

Everest Re – A Premier Global Brand

FOR OVER 40 YEARS, ONE OF THE TOP GLOBAL REINSURERS ACROSS THE GLOBE Global platform provides geographic reach across virtually all property and casualty lines of business Enduring franchise with diversified portfolio of

  • ver $6B in premiums

Market leading returns

In today’s highly competitive reinsurance environment, Everest Re’s top tier industry size, client and broker historical relationships, existing profitable participation on client programs and access to new business

  • - simply can not be replicated

Color 1.5% - 2.0% 1.0% - 1.5% 2.0% - 5.0% 5.0% - 6.0% >6.0% Map Color Key Mkt Share % 0.1% - 1.0%

1989 Prem% of RAA 2016 Prem % of RAA Rank Reinsurer ($M) Industry Rank Reinsurer ($M) Industry 1 General Re Group $1,797 17% 1 National Indemnity Co. $19,866 29% 2 Employers Re. Corp. $1,114 10% 3 QBE North America $7,893 11% 3 American Re $871 8% 2 Munich Re America $5,279 8% 4 Swiss Re America $630 6% 4 Everest Reinsurance Co. $5,101 8% 5 Munich Re Group $571 5% 5 XL Reinsurance America Inc. $4,671 7% 6 Prudential Re (Everest) $503 5% 6 Swiss Reinsurance America C $4,494 6%

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SLIDE 5

$19.39 $21.66 $26.21 $30.10 $29.32 $35.39 $38.46 $48.14 $58.79 $68.44 $66.83 $81.92 $95.74 $88.00 $112.02 $126.52 $125.98 $145.87 $163.67 $187.05 $202.51 $226.45 $233.57

'95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 1Q17

Book Value per Share Accumulated Dividends to Shareholders

TOTAL SHAREHOLDER RETURN

EVEREST RE GROUP, LTD. 5

TOTAL SHAREHOLDER RETURN

Generating Shareholder Value

Total Value Creation, defined as growth in book value per share + dividends, has averaged 14% annually over the last 5 years

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SLIDE 6

EVEREST RE GROUP, LTD. 6

WELL POSITIONED TO CONTINUE TO BUILD VALUE

The Everest Advantage

Experienced Team Strong Cycle Management Diversified Business Platform Disciplined Growth

2016 Gross Written Premium

$6.0 Billion

Insurance 30% Reinsurance 70% Casualty 38% Property 62%

  • Strong Brand Recognition
  • Top ratings (A.M. Best A+; S&P A+; Moody’s A1)
  • Experienced Management Team and Board of Directors
  • Winning Culture – disciplined, focused on profitable growth,

accountable – results oriented, flat and nimble in decision making

  • Efficient Operating Structure – 5.8% group expense ratio

and 3.4% expense ratio for reinsurance operations only

  • High-quality, liquid investment portfolio with $18.1 Billion of

assets with an average rating of Aa3

  • Strong Balance Sheet - $8.3 Billion in GAAP equity
  • Diversified Book of Business – Reinsurance/Insurance;

Property/Casualty; U.S./Non U.S.

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SLIDE 7

EVEREST RE GROUP, LTD. 7

Experienced Management Team

Dominic Addesso

President and Chief Executive Officer Mike Kerner

EVP and Head of Strategy and Risk Management

Craig Howie

EVP and Chief Financial Officer and Treasurer

Daryl Bradley

Executive Vice President

John Doucette

EVP and President and CEO of the Reinsurance Division

Jonathan Zaffino

SVP and President of the North America Insurance Division

Sanjoy Mukherjee

EVP, General Counsel and Secretary Managing Director and CEO, Everest Reinsurance (Bermuda), Ltd.

Ralph Groce

SVP and Chief Information Officer

Gail Van Beveren

Senior Vice President

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SLIDE 8

EVEREST RE GROUP, LTD. 8

Multiple Distribution Channels

ABILITY TO RESPOND TO GLOBAL OPPORTUNITIES

Key Operating Subsidiaries in the United States, Ireland, and Bermuda

REINSURANCE LOCATIONS: INSURANCE LOCATIONS: United States

  • Chicago, IL
  • Liberty Corner,

NJ

  • Miami, FL
  • New York, NY
  • Oakland, CA
  • Bermuda
  • Belgium
  • Brazil
  • Canada
  • Ireland
  • London
  • Singapore
  • Switzerland

United States

  • Atlanta, GA
  • Boston, MA
  • Chicago, IL
  • Dallas, TX
  • Houston, TX
  • Indianapolis, IN
  • Liberty Corner, NJ
  • Los Angeles, CA
  • New York, NY
  • Oakland, CA
  • Orange, CA
  • Tampa, FL

Bermuda

  • Hamilton

Canada

  • Toronto

Lloyds

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SLIDE 9

9

Resulting in Strong Momentum

5-YEAR GROWTH FROM 2011 TO 2016

Gross Written Premium Non-Cat Underwriting Income Book Value Per Share

4,286 6,034

  • 1,000

2,000 3,000 4,000 5,000 6,000 7,000 2011 2016

41%

543 991

  • 1,300
  • 301
  • 2000.0
  • 1500.0
  • 1000.0
  • 500.0

0.0 500.0 1000.0 1500.0 2000.0 2011 2016 Non-cat UW Income Cats

83%

112.99 197.45

  • 40.00

10.00 60.00 110.00 160.00 210.00 260.00 2011 2016

75%

718 1,373 200 400 600 800 1000 1200 1400 1600 1800 2011 2016

91%

999 1,121 200 400 600 800 1000 1200 1400 2011 2016

12%

EVEREST RE GROUP, LTD.

6,878 11,152 2,000 4,000 6,000 8,000 10,000 12,000 14,000 2011 2016

Equity Total Debt

  • Mt. Logan

Cat bonds*

62%

Operating Cash Flow Total Capacity Employees

* Additional $1,250m cat bonds were issued in 1Q17

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SLIDE 10

EVEREST RE GROUP, LTD. 10

$ IN MILLIONS

Financial Highlights

For the year ended December 31,

(in millions)

2017 YTD 2016 2015 2014 2013 2012 Income Statement Data: Gross Premiums Written $ 1,600.9 $ 6,033.9 $ 5,891.7 $ 5,762.9 $ 5,220.4 $ 4,310.5 Net Premiums Earned 1,312.1 5,320.5 5,292.8 5,043.7 4,736.3 4,164.6 Net Investment Income 122.3 473.1 473.5 530.5 548.5 600.2 Operating Income (Loss) 259.5 993.5 1,108.1 1,143.7 1,062.6 715.2 Net Income (Loss) 291.6 996.3 977.9 1,199.2 1,259.4 829.0 Balance Sheet Data: Cash and Investments 18,123.5 17,483.1 16,676.4 16,880.8 16,462.8 16,576.2 Shareholders’ Equity 8,347.9 8,075.4 7,608.6 7,451.1 6,968.3 6,733.5 Book Value per Common Share 203.32 197.45 178.21 166.75 146.57 130.96 Financial Ratios: Combined Ratio 86.0% 87.0% 85.1% 83.8% 84.6% 93.8% After-Tax Operating ROE 12.8% 12.8% 15.0% 16.3% 16.5% 12.2% Net Income ROE 14.4% 12.8% 13.2% 17.1% 19.5% 14.1%

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SLIDE 11

EVEREST RE GROUP, LTD. 11

DEMONSTRATES STRONG CYCLE MANAGEMENT

Long Term Performance

Strong and stable results despite challenges posed by:

  • Cyclical underwriting market conditions
  • Legacy asbestos and environmental (A&E) claims
  • Several years of significant catastrophe loss activity
  • Financial market volatility
  • Low interest rate environment

* Weighted average

Key Profitability Measures (Compound Annual Growth Rate) 5 Year 2012-2016 10 Year 2007-2016 ITD 1996-2016 Combined Ratio* 86.6% 92.4% 95.8% Pretax Operating ROR 21.5% 17.7% 15.2% Operating ROE 14.6% 11.9% 11.8% Shareholder Value 13.6% 11.0% 12.4%

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SLIDE 12

EVEREST RE GROUP, LTD. 12

Leading Global Reinsurer

  • Rank among the top 10 reinsurers worldwide
  • Global footprint with a 40-year history
  • Broad product capabilities
  • Dynamic strategy in response to market conditions
  • Innovators of creative risk solutions
  • “Best in Class” data-driven management systems
  • Competitive expense advantage
  • Portfolio optimization through effective capital

management 2016 Everest Reinsurance Ops Gross Written Premium $4,246.9 Combined Ratio 77.6% Attritional Combined Ratio 81.1% 2016

USA 52% Canada 3% Asia/ Australia 4% Latin America 15% Worldwide 4% Middle East/Africa 5% Europe/UK 17% Property Cat XOL 29% Other Property 42% Casualty 29%

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SLIDE 13
  • Selective expansion of the portfolio towards

specialty markets

  • Multi-channel distribution strategy
  • Leverage underwriting talent and infrastructure to

deliver underwriting profit

  • Balance risks across line, geography, industry

and frequency/severity profiles

  • Maintain flat, nimble organization and our

expense advantage Everest Insurance Ops Gross Written Premium $1,787.0 Combined Ratio 116.5% Attritional Combined Ratio* 97.9%

EVEREST RE GROUP, LTD. 13

Building a Premier Global Specialty Insurance Operation

2016 2016

10% 44% 27% 23% 63% 33% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2010 2016 Class of Business

Short Tail Medium Tail Long Tail

23% 64% 77% 36% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2010 2016 Distribution

Direct Program

* Excluding Heartland Crop Insurance Property/Short Tail 24% Workers Compensation 22% Other Casualty 13% Crop 13% Professional Liability 11% Accident & Health 10% Canada 4% Lloyd's 3%

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SLIDE 14

EVEREST RE GROUP, LTD. 14

Strong Risk Management Culture

WITH CONSIDERABLE FINANCIAL FLEXIBILITY AND CONSERVATIVE PROPERTY CATASTROPHE EXPOSURE

Risk is fundamental to our business therefore we have developed a comprehensive enterprise risk management (ERM) framework that aims to preserve the strength of our balance sheet while generating reasonable returns to shareholders.

0% 10% 20% 30% ACGL PRE CB AWH ENH RE XL AXS AHL LRE.L VR 1-100 1-250 PML as Percent of Shareholders' Equity

As of 12/31/16 Rank based on 1-250 Source: Dowling

PML as Percent of Shareholders' Equity

Source: Dowling

0% 10% 20% 30% RE ENH XL AWH LRE CB RNR VR ACGL AXS AHL Debt + Preferred Equity to Capital

Source: SNL Source: SNL As of 12/31/16

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SLIDE 15

15

Favorable Accident Year Loss Development

10 YEAR LOSS RESERVING EXPERIENCE – INITIAL TO ULTIMATE

On average, the total loss ratio (including cats) has developed 2.9 points better than initial selection over the last 10 years

58.6% 65.1% 57.7% 75.7% 90.8% 66.0% 59.4% 57.8% 59.1% 64.6% 65.0% 56.6% 65.7% 56.9% 74.2% 86.8% 59.7% 51.3% 53.3% 56.9% 64.6% 62.1% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 All Years Initial Loss Ratio Developed Loss Ratio

EVEREST RE GROUP, LTD.

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SLIDE 16

EVEREST RE GROUP, LTD. 16

A Strategy That Embraces Alternative Capital Paradigm

2013

MT LOGAN

Covered Perils: diversified cat exposures across different geographical regions globally

$942M AUM at 4/1/17

2014

KILIMANJARO RE LTD. (SERIES 2014 - 1&2)

Covered Perils: U.S. named storms, U.S. & Canada earthquake

$950M KILIMANJARO RE LTD. (SERIES 2017- 1&2)

Covered Perils: U.S and Canada earthquake $1,250M

2017 2015

KILIMANJARO RE LTD. (SERIES 2015-1)

Covered Perils: U.S., Canada, Puerto Rico, D.C. names storm and earthquake

$625M

  • Assumes reinsurance

from Everest

  • Generates fee income on

business that is too large for Everest’s balance sheet

EVEREST’S CAPITAL

MARKETS PLATFORM

KILIMANJARO CATASTROPHE BONDS SPONSORED BY EVEREST HAS PROVIDED OVER $2.8B OF MULTI-YEAR COLLATERALIZED CAPACITY

  • Everest, with more than 40 years of experience is a natural and high regarded partner for

the investors seeking responsible underwriting partners to originate, aggregate, and package a diversified risk portfolio

  • Bond offerings were significantly upsized from initial offering due to high investor demand

CAPITAL MARKETS ADD TO EVEREST’S CAPACITY AND INCREASE NET MARGINS

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SLIDE 17

EVEREST RE GROUP, LTD. 17

Active Capital Management Improves Shareholder Value

BOOK VALUE PER SHARE INCREASES 2.5x SINCE 2006 Capital Management:

  • Everest historically

addresses excess capital through share buybacks

  • Since 2006, Everest has

repurchased 43% of its

  • utstanding shares,

returning $3.3 billion of capital to shareholders

  • 2m shares remain

available under the share repurchase agreement at March 31, 2017

  • Dividends to

shareholders have more than doubled since 3Q2013

8,348 8,075 7,609 7,451 6,968 6,733 6,071 6,284 6,102 4,960 5,685 5,108 633 633 633 633 486 808 807 807 1,006 1,165 1,164 978 942 869 6,879 2,825 1,575 1,575 9,722 7,824 7,542 7,108 7,090 6,125 6,848

  • 4,655
  • 4,604
  • 4,022
  • 3,447
  • 2,801
  • 2,073
  • 1,682
  • 1,486
  • 979
  • 671
  • 39
  • 39

$203.32 $197.45 $178.21 $166.75 $146.57 $130.96 $112.99 $115.45 $102.87 $80.77 $90.43 $78.53

1Q17 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

Common Equity Total Debt

  • Mt. Logan AUM

Cat Bonds Accumulated Share Repurchases & Dividends BVPS 10,615 11,152 12,748 689 799 6,086 370 950

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SLIDE 18

EVEREST RE GROUP, LTD. 18

FIGURES AS OF 3/31/17 - INVESTABLE ASSETS OF $18.1 BILLION

Conservative Leverage and Liquidity

Liquidity Capitalization

10.7 6.5 7.8 7.7 7.3 7.1 5.0 10.0 15.0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2012 2013 2014 2015 2016 1Q17

4.9% Senior Debt Junior Sub-Debt Long-Term Sub-Notes 5.4% Senior Debt Common Equity Debt Leverage Government 8% Mortgage/ Asset Backed 18% Corporate 30% Equity 6% Municipal 4% Non U.S. 22% Other 7% Cash & Short Term 5%

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SLIDE 19

EVEREST RE GROUP, LTD. 19

Strong and Consistent Operating Cash Flows

ADD TO STRONG LIQUIDITY PROFILE

$1.0 $1.1 $1.0 $1.1 $1.4 $1.9 $2.8 $4.6 $4.7 $4.1 $4.0 $4.1 $3.7 $4.1 $4.2 $4.3 $4.3 $5.2 $5.7 $5.9 $6.0 $1.6 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 1Q17 Operating Cash Flows Gross Written Premiums GWP

Cash Flow

'08 Hurr Ike '04 FL Hurricanes '05 KRW Hurricanes '11 Japan EQ & Thai Floods '12 Hurricane Sandy '01 WTC '08-'09 Financial Crisis/ Recession

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SLIDE 20

21.1% 288.8% 172.9% 11.9% 164.0% 95.6% 508.2%

0.0% 100.0% 200.0% 300.0% 400.0% 500.0% 600.0% 1 Year 5 Years 10 Years Inception to Date

Everest S&P 500

1,417.4%

EVEREST RE GROUP, LTD. 20

Significant Total Return to Shareholders

*Total Return Includes Price Appreciation and Dividends Source: Bloomberg

2015-2016 2011 - 2016 2006 - 2016 ITD

9 points 125 points 77 points 909 points Everest Re total return* over S&P 500:

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SLIDE 21

EVEREST RE GROUP, LTD. 21

A BUSINESS MODEL THAT IS NOT EASILY REPLICATED

The Everest Franchise—Well Positioned for Success

Top Tier Reinsurer

$6.0B

Long Term Value Creation

12.4%

Long Term Market Presence

40+

Global Reach

14

Significant Scale

$12.7B

Strong Ratings Efficient Operation Structure

6.4 Points

Extreme Financial Flexibility

7.1%

2016 Gross Written Premiums Compound Annual Growth in Book Value per Share, Adjusted for Dividends, since 1995 Years of Market Experience Reinsurance Offices,* 9 outside the US

15

Insurance Offices,* 3 outside the US Everest + Mt. Logan + Cat Bonds A.M. Best: A+

S&P: A+

Moody’s: A1

Expense Advantage Relative to Our Reinsurance Peers Debt-to-Capital Ratio

*Including Lloyds Syndicate 2786

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SLIDE 22

EVEREST RE GROUP, LTD.

Seon Place, 141 Front Street, 4th Floor, P. O. Box 845, Hamilton, HM DX, Bermuda