Everest Group, Ltd. has recently released its 10-Q report, providing an insight into the company's financial performance and industry conditions. The company operates through two segments, Insurance and Reinsurance, offering a wide range of reinsurance and insurance products globally. Everest's financial results tend to fluctuate with periods of constrained availability, higher rates, and stronger profits, followed by periods of abundant capacity, lower rates, and constrained profitability, reflecting the highly competitive and cyclical nature of the insurance and reinsurance businesses.
In terms of financial performance, Everest reported a 13.0% increase in gross written premiums, reaching $4.7 billion for the three months ended June 30, 2024, compared to $4.2 billion for the same period in 2023. The net written premiums also saw an 11.2% increase to $4.1 billion for the same period. The company's premiums earned grew by 13.6% to $3.7 billion during the three months ended June 30, 2024, compared to $3.3 billion during the same period in 2023. Additionally, Everest's net investment income surged by 47.9% to $528 million, and the company reported a net income of $724 million for the three months ended June 30, 2024, marking an 8.0% increase from the same period in 2023.
When analyzing the claims and expenses, Everest saw a 17.9% increase in incurred losses and loss adjustment expenses, reaching $2.3 billion for the three months ended June 30, 2024, compared to $2.0 billion for the same period in 2023. The increase was primarily attributed to higher current year attritional losses and catastrophe losses. Commission, brokerage, taxes, and fees also increased by 15.2% to $790 million for the three months ended June 30, 2024, compared to $686 million for the same period in 2023.
Furthermore, Everest's balance sheet data showed positive growth, with total investments and cash reaching $39.1 billion, a 5.2% increase from the previous year. The company's total assets grew by 6.4% to $52.6 billion, and shareholders' equity increased by 7.4% to $14.2 billion.
Despite the ongoing Middle East war and the war in Ukraine, Everest's capital position remains strong, with high-quality invested assets, significant liquidity, and a low operating expense ratio. The company's diversified global platform with a broad mix of products, distribution, and geography is deemed resilient amidst the current market conditions.
The market has reacted to these announcements by moving the company's shares -1.1% to a price of $364.13. If you want to know more, read the company's complete 10-Q report here.
