EG Everest Group Ltd

Net Income of $678 million and Operating Income of $613 million 21.2% Net Income ROE and 19.2% Operating Income ROE 23.4%1 GWP2 Growth, Led by Record Reinsurance Growth of 32.7%1 86.5% Attritional Combined Ratio Improved 110 Basis Points Year-Over-Year

Everest Group, Ltd. (NYSE: EG), a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions, today reported its third quarter 2023 results.

Third Quarter 2023 Highlights

• Net Income of $678 million; Operating Income of $613 million driven by continued underwriting margin improvement and strong net investment income generation
• 21.2% Net Income ROE and 19.2% Operating Income ROE; Total Shareholder Return of 24.5% annualized
• $4.4 billion in gross written premium with year-over-year growth of 23.4% in constant dollars as reported for the Group, 32.7% in constant dollars when adjusting for reinstatement premiums for Reinsurance and 3.5% in constant dollars for Insurance
• Combined ratios of 91.4% for the Group, 91.0% for Reinsurance and 92.6% for Insurance driven by improved pricing and lower catastrophe losses year-over-year
• Attritional combined ratios of 86.5% for the Group, 84.9% for Reinsurance and 91.0% for Insurance
• Pre-tax underwriting income of $301 million versus a pre-tax underwriting loss of $367 million in the prior year
• $170 million of pre-tax catastrophe losses net of recoveries and reinstatement premiums, driven by a number of mid-sized events globally, versus $730 million in the prior year
• Net investment income improved to $406 million versus $151 million in the prior year third quarter, driven by strong fixed income and alternative investment returns
• Strong operating cashflow for the quarter of $1.4 billion, a company record, versus $1.1 billion in the third quarter 2022

Footnote 1 in header denotes constant currency figure. Footnote 2 in header denotes gross written premium (“GWP”).

“Everest’s third quarter performance was excellent. We delivered outstanding returns including a near 20% operating return on equity and an annualized 25% total shareholder return,” said Everest President & CEO Juan C. Andrade. "We are leaning into the hard reinsurance market, where favorable 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. Supporting the strong underwriting performance of our two businesses, our 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. 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."

Summary of Third Quarter 2023 Net Income and Other Items

• Net Income of $678 million, equal to $15.63 per diluted share versus third quarter 2022 net loss of $319 million, equal to $(8.22) per diluted share
• Operating income of $613 million, equal to $14.14 per diluted share versus third quarter 2022 net operating loss of $205 million, equal to $(5.28) per diluted share
• GAAP combined ratio of 91.4%, including 5.0 points of catastrophe losses versus the third quarter 2022 figure of 112.0%, including 27.4 points of catastrophe losses

The following table summarizes the Company’s Net Income and related financial metrics.

Net income and operating income

Q3

 

Year to Date

 

Q3

 

Year to Date

All values in USD millions except for per share amounts and percentages

2023

 

2023

 

2022

 

2022

Everest Group

 

 

 

 

 

 

 

Net income (loss)

678

 

1,713

 

(319)

 

101

Operating income (loss) (1)

613

 

1,684

 

(205)

 

587

 

 

 

 

 

 

 

 

Net income (loss) per diluted common share

15.63

 

41.49

 

(8.22)

 

2.57

Net operating income (loss) per diluted common share

14.14

 

40.77

 

(5.28)

 

14.91

 

 

 

 

 

 

 

 

Net income (loss) return on average equity (annualized)

21.2%

 

19.7%

 

(12.9%)

 

1.4%

After-tax operating income (loss) return on average equity (annualized)

19.2%

 

19.3%

 

(8.3%)

 

8.0%

   

Notes

(1) Refer to the reconciliation of net income to net operating income found on page 6 of this press release

Shareholders' Equity and Book Value per Share

Q3

 

Year to Date

 

Q3

 

Year to Date

All values in USD millions except for per share amounts and percentages

2023

 

2023

 

2022

 

2022

Beginning shareholders' equity

10,902

 

8,441

 

8,853

 

10,139

Net income (loss)

678

 

1,713

 

(319)

 

101

Change - unrealized gains (losses) - Fixed inc. investments

(242)

 

(159)

 

(671)

 

(2,199)

Dividends to shareholders

(76)

 

(212)

 

(65)

 

(191)

Purchase of treasury shares

—

 

—

 

(58)

 

(60)

Public equity offering of shares

—

 

1,445

 

—

 

—

Other

(37)

 

(1)

 

(91)

 

(141)

Ending shareholders' equity

11,226

 

11,226

 

7,649

 

7,649

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

43.4

 

 

 

39.2

Book value per common share outstanding

 

 

258.71

 

 

 

195.27

Less: Unrealized appreciation/depreciation of fixed maturity investments ("URAD")

 

 

(43.06)

 

 

 

(50.02)

Adjusted book value per common share outstanding excluding URAD

 

 

301.76

 

 

 

245.29

 

 

 

 

 

 

 

 

Change in BVPS adjusted for dividends

 

 

22.4%

 

 

 

(22.5)%

Total Shareholder Return ("TSR") - Annualized

 

 

24.5%

 

 

 

-1.0%

Common share dividends paid - last 12 months

 

 

6.70

 

 

 

6.40

The following information summarizes the Company’s underwriting results, on a consolidated basis and by segment – Reinsurance and Insurance, with selected commentary on results by segment.

Underwriting information - Everest Group

Q3

 

Year to Date

 

Q3

 

Year to Date

 

Year on Year Change

All values in USD millions except for percentages

2023

 

2023

 

2022

 

2022

 

Q3

 

Year to Date

Gross written premium

4,391

 

12,314

 

3,680

 

10,313

 

19.3%

 

19.4%

Net written premium

3,866

 

10,870

 

3,323

 

9,156

 

16.4%

 

18.7%

 

 

 

 

 

 

 

 

 

 

 

 

Loss ratio

63.9%

 

62.6%

 

85.5%

 

71.7%

 

(21.6) pts

 

(9.1) pts

Commission and brokerage ratio

21.4%

 

21.3%

 

20.9%

 

21.4%

 

0.5 pts

 

(0.1) pts

Other underwriting expenses

6.1%

 

6.3%

 

5.5%

 

5.7%

 

0.6 pts

 

0.6 pts

Combined ratio

91.4%

 

90.1%

 

112.0%

 

98.8%

 

(20.5) pts

 

(8.6) pts

Attritional combined ratio (1)

86.5%

 

86.9%

 

87.6%

 

87.4%

 

(1.1) pts

 

(0.5) pts

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax net catastrophe losses (2)

170

 

307

 

730

 

930

 

 

 

 

Pre-tax net Russia/Ukraine losses

—

 

—

 

—

 

45

 

 

 

 

Pre-tax net prior year reserve development

—

 

—

 

—

 

(2)

 

 

 

 

   

Notes

(1) Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, prior year development, COVID-19 losses, CECL, and losses from the Russia/Ukraine war

(2) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums

Reinsurance Segment – Quarterly Highlights

• Gross written premiums grew 32.7% on a constant dollar basis, when adjusting for reinstatement premiums, to approximately $3.2 billion, a new quarterly premium record for the segment. Growth was broad-based across geographies and lines.
• Growth was driven by 43.9% growth in Property Pro-Rata, 41.2% in Property Catastrophe XOL, 28.8% growth in Casualty XOL, and 19.9% growth in Casualty Pro-Rata, when adjusting for reinstatement premiums, as pricing increases and a flight to quality continue globally.
• Robust pricing momentum continued in the third quarter, with Cat pricing up over 30% with improved terms/conditions.
• Attritional loss ratio improved 160-basis points over last year to 57.5%, and the attritional combined ratio improved to 84.9% versus 86.8% a year ago.
• Pre-tax catastrophe losses fell to $160 million net of estimated recoveries and reinstatement premiums, from $620 million a year ago.

Underwriting information - Reinsurance segment

Q3

 

Year to Date

 

Q3

 

Year to Date

 

Year on Year Change

All values in USD millions except for percentages

2023

 

2023

 

2022

 

2022

 

Q3

 

Year to Date

Gross written premium

3,219

 

8,622

 

2,551

 

6,938

 

26.2%

 

24.3%

Net written premium

3,008

 

8,101

 

2,460

 

6,664

 

22.3%

 

21.6%

 

 

 

 

 

 

 

 

 

 

 

 

Loss ratio

63.7%

 

61.9%

 

88.7%

 

72.8%

 

(25.0) pts

 

(10.9) pts

Commission and brokerage ratio

24.8%

 

24.8%

 

23.9%

 

24.5%

 

0.9 pts

 

0.3 pts

Other underwriting expenses

2.5%

 

2.6%

 

2.4%

 

2.4%

 

0.1 pts

 

0.2 pts

Combined ratio

91.0%

 

89.2%

 

115.0%

 

99.8%

 

(24.0) pts

 

(10.6) pts

Attritional combined ratio (1)

84.9%

 

85.1%

 

86.8%

 

86.3%

 

(1.9) pts

 

(1.2) pts

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax net catastrophe losses (2)

160

 

295

 

620

 

810

 

 

 

 

Pre-tax net Russia/Ukraine losses

—

 

—

 

—

 

45

 

 

 

 

Pre-tax net prior year reserve development

—

 

—

 

—

 

(2)

 

 

 

 

   

Notes

(1) Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, prior year development, COVID-19 losses, CECL, and losses from the Russia/Ukraine war

(2) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums

Insurance Segment – Quarterly Highlights

• Gross written premiums rose to $1.2 billion, a 3.5% increase year-over-year in constant dollars, driven by a diversified mix of property and specialty lines, partially offset by lower written premiums in monoline workers' compensation and financial lines.
• Strong underwriting profit of $66 million for the quarter, $196 million year-to-date.
• Pre-tax catastrophe losses were $10 million, net of estimated recoveries and reinstatement premiums, in the quarter versus $110 million in the prior year.
• Expense ratio of 28.2% with continued investment in systems, talent, and our global platform.
• Pricing continues to exceed loss trend.

Underwriting information - Insurance segment

Q3

 

Year to Date

 

Q3

 

Year to Date

 

Year on Year Change

All values in USD millions except for percentages

2023

 

2023

 

2022

 

2022

 

Q3

 

Year to Date

Gross written premium

1,172

 

3,692

 

1,129

 

3,376

 

3.8%

 

9.4%

Net written premium

858

 

2,768

 

862

 

2,492

 

(0.4) %

 

11.1%

 

 

 

 

 

 

 

 

 

 

 

 

Loss ratio

64.4%

 

64.5%

 

76.8%

 

68.4%

 

(12.4) pts

 

(3.9) pts

Commission and brokerage ratio

11.5%

 

11.7%

 

12.7%

 

12.7%

 

(1.2) pts

 

(1.0) pts

Other underwriting expenses

16.7%

 

16.3%

 

14.0%

 

14.8%

 

2.7 pts

 

1.5 pts

Combined ratio

92.6%

 

92.6%

 

103.5%

 

95.9%

 

(10.9) pts

 

(3.3) pts

Attritional combined ratio (1)

91.0%

 

91.6%

 

89.8%

 

90.3%

 

1.2 pts

 

1.3 pts

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax net catastrophe losses (2)

10

 

12

 

110

 

120

 

 

 

 

Pre-tax net Russia/Ukraine losses

—

 

—

 

—

 

—

 

 

 

 

Pre-tax net prior year reserve development

—

 

—

 

—

 

1

 

 

 

 

   

Notes

(1) Attritional combined ratio excludes catastrophe losses, reinstatement premiums, prior year development, Covid-19 losses, CECL, and losses from the Russian/Ukraine war.

(2) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums

Investments and Shareholders’ Equity as of September 30, 2023

• Total invested assets and cash of $34.6 billion versus $29.9 billion on December 31, 2022
• Shareholders’ equity of $11.2 billion vs. $8.4 billion on December 31, 2022, including $1.9 billion of unrealized net losses on AFS fixed maturity investments
• Shareholders’ equity excluding unrealized gains (losses) on AFS fixed maturity investments of $13.1 billion versus $10.1 billion on December 31, 2022
• Book value per share of $258.71 versus $215.54 at December 31, 2022
• Book value per share excluding unrealized gains (losses) on AFS fixed maturity investments of $301.76 versus $259.18 at December 31, 2022
• Common share dividends declared and paid in the quarter of $1.75 per share equal to $76 million

This news release 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 of our reserves, our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, investment market and investment income fluctuations, trends in insured and paid losses, catastrophes, pandemic, 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.

About Everest

Everest Group, Ltd. (Everest) is a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions that address customers’ most pressing challenges. Known for a 50-year track record of disciplined underwriting, capital and risk management, Everest, through its global operating affiliates, is committed to underwriting opportunity for colleagues, customers, shareholders, and communities worldwide.

Everest common stock (NYSE: EG) is a component of the S&P 500 index.

Additional information about Everest, our people, and our products can be found on our website at www.everestglobal.com.

A conference call discussing the results will be held at 8:00 a.m. Eastern Time on October 26, 2023. The call will be available on the Internet through the Company’s website at https://www.everestglobal.com/investor-relations.

Recipients are encouraged to visit the Company’s website to view supplemental financial information on the Company’s results. The supplemental information is located at www.everestglobal.com in the “Investors/Financials/Quarterly Results” section of the website. The supplemental financial information may also be obtained by contacting the Company directly.

Everest will host its 2023 Investor Day on Tuesday, November 14, 2023, from 9:30 am to 1:00 pm Eastern Time. A live, listen-only webcast will be available for interested parties at https://vimeo.com/webinars/events/17b74702-5109-4c76-b8d7-4ca9b583d8b6.

_______________________________________________

The Company generally uses after-tax operating income (loss), a non-GAAP financial measure, to evaluate its performance. After-tax operating income (loss) consists of net income (loss) excluding after-tax net gains (losses) on investments and after-tax net foreign exchange income (expense) as the following reconciliation displays:

(Dollars in millions, except per share amounts)

Three Months Ended September 30,

 

Nine Months Ended September 30,

2023

 

2022

 

2023

 

2022

 

(unaudited)

 

(unaudited)

 

Amount

 

Per Diluted Share

 

Amount

 

Per Diluted Share

 

Amount

 

Per Diluted Share

 

Amount

 

Per Diluted Share

After-tax operating income (loss)

$

613

 

 

$

14.14

 

 

$

(205

)

 

$

(5.28

)

 

$

1,684

 

 

$

40.77

 

 

$

587

 

 

$

14.91

 

After-tax net gains (losses) on investments

 

(27

)

 

 

(0.61

)

 

 

(102

)

 

 

(2.63

)

 

 

(17

)

 

 

(0.40

)

 

 

(415

)

 

 

(10.53

)

After-tax net foreign exchange income (expense)

 

91

 

 

 

2.10

 

 

 

(12

)

 

 

(0.31

)

 

 

46

 

 

 

1.12

 

 

 

(71

)

 

 

(1.80

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

678

 

 

$

15.63

 

 

$

(319

)

 

$

(8.22

)

 

$

1,713

 

 

$

41.49

 

 

$

101

 

 

$

2.57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Some amounts may not reconcile due to rounding.)

Although net gains (losses) on investments and net foreign exchange income (expense) are an integral part of the Company’s insurance operations, the determination of net gains (losses) on investments and foreign exchange income (expense) is independent of the insurance underwriting process. The Company believes that the level of net gains (losses) on investments and net foreign exchange income (expense) for any particular period is not indicative of the performance of the underlying business in that particular period. Providing only a GAAP presentation of net income (loss) makes it more difficult for users of the financial information to evaluate the Company’s success or failure in its basic business and may lead to incorrect or misleading assumptions and conclusions. The Company understands that the equity analysts who follow the Company focus on after-tax operating income (loss) in their analyses for the reasons discussed above. The Company provides after-tax operating income (loss) to investors so that they have what management believes to be a useful supplement to GAAP information concerning the Company’s performance.

--Financial Details Follow--

EVEREST GROUP, LTD.

 

CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)      

Three Months Ended September 30,

 

Nine Months Ended September 30,

(Dollars in millions, except per share amounts)

2023

 

2022

 

2023

 

2022

(unaudited) (unaudited) REVENUES: Premiums earned

$

3,513

 

$

3,067

 

$

9,865

 

$

8,775

 

Net investment income

 

406

 

 

151

 

 

1,023

 

 

620

 

Total net gains (losses) on investments

 

(31

)

 

(129

)

 

(21

)

 

(519

)

Other income (expense)

 

103

 

 

(16

)

 

61

 

 

(71

)

Total revenues

 

3,991

 

 

3,073

 

 

10,927

 

 

8,805

 

  CLAIMS AND EXPENSES: Incurred losses and loss adjustment expenses

 

2,246

 

 

2,623

 

 

6,173

 

 

6,289

 

Commission, brokerage, taxes and fees

 

752

 

 

641

 

 

2,099

 

 

1,877

 

Other underwriting expenses

 

215

 

 

169

 

 

620

 

 

500

 

Corporate expenses

 

19

 

 

16

 

 

55

 

 

45

 

Interest, fees and bond issue cost amortization expense

 

34

 

 

25

 

 

99

 

 

74

 

Total claims and expenses

 

3,266

 

 

3,474

 

 

9,045

 

 

8,785

 

  INCOME (LOSS) BEFORE TAXES

 

725

 

 

(401

)

 

1,883

 

 

20

 

Income tax expense (benefit)

 

47

 

 

(82

)

 

169

 

 

(81

)

  NET INCOME (LOSS)

$

678

 

$

(319

)

$

1,713

 

$

101

 

  Other comprehensive income (loss), net of tax: Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period

 

(257

)

 

(712

)

 

(180

)

 

(2,260

)

Reclassification adjustment for realized losses (gains) included in net income (loss)

 

15

 

 

41

 

 

21

 

 

61

 

Total URA(D) on securities arising during the period

 

(242

)

 

(671

)

 

(159

)

 

(2,199

)

  Foreign currency translation adjustments

 

(47

)

 

(101

)

 

(17

)

 

(163

)

  Reclassification adjustment for amortization of net (gain) loss included in net income (loss)

 

—

 

 

1

 

 

1

 

 

2

 

Total benefit plan net gain (loss) for the period

 

—

 

 

1

 

 

1

 

 

2

 

Total other comprehensive income (loss), net of tax

 

(288

)

 

(771

)

 

(175

)

 

(2,360

)

  COMPREHENSIVE INCOME (LOSS)

$

390

 

$

(1,090

)

$

1,538

 

$

(2,259

)

  EARNINGS PER COMMON SHARE: Basic

$

15.63

 

$

(8.22

)

$

41.49

 

$

2.57

 

Diluted

 

15.63

 

 

(8.22

)

 

41.49

 

 

2.57

 

 

  EVEREST GROUP, LTD.   CONSOLIDATED BALANCE SHEETS      

September 30,

 

December 31,

(Dollar and share amounts in millions, except par value per share)

2023

 

2022

(unaudited) ASSETS: Fixed maturities - available for sale, at fair value (amortized cost: 2023, $27,305; 2022, $24,191, credit allowances: 2023, $(60); 2022, $(54))

$

25,159

 

$

22,236

 

Fixed maturities - held to maturity, at amortized cost (fair value: 2023, $766; 2022, $821, net of credit allowances: 2023, $(8); 2022, $(9))

 

789

 

 

839

 

Equity securities, at fair value

 

166

 

 

281

 

Other invested assets

 

4,353

 

 

4,085

 

Short-term investments

 

2,403

 

 

1,032

 

Cash

 

1,765

 

 

1,398

 

Total investments and cash

 

34,635

 

 

29,872

 

Accrued investment income

 

298

 

 

217

 

Premiums receivable (net of credit allowances: 2023, $(36); 2022, $(29))

 

4,426

 

 

3,619

 

Reinsurance paid loss recoverables (net of credit allowances: 2023, $(25); 2022, $(23))

 

226

 

 

136

 

Reinsurance unpaid loss recoverables

 

2,196

 

 

2,105

 

Funds held by reinsureds

 

1,097

 

 

1,056

 

Deferred acquisition costs

 

1,156

 

 

962

 

Prepaid reinsurance premiums

 

756

 

 

610

 

Income tax asset, net

 

500

 

 

459

 

Other assets (net of credit allowances: 2023, $(8); 2022, $(5))

 

1,029

 

 

930

 

TOTAL ASSETS

$

46,318

 

$

39,966

 

  LIABILITIES: Reserve for losses and loss adjustment expenses

 

23,833

 

$

22,065

 

Future policy benefit reserve

 

27

 

 

29

 

Unearned premium reserve

 

6,295

 

 

5,147

 

Funds held under reinsurance treaties

 

28

 

 

13

 

Amounts due to reinsurers

 

795

 

 

567

 

Losses in course of payment

 

330

 

 

74

 

Senior notes

 

2,348

 

 

2,347

 

Long-term notes

 

218

 

 

218

 

Borrowings from FHLB

 

519

 

 

519

 

Accrued interest on debt and borrowings

 

41

 

 

19

 

Unsettled securities payable

 

200

 

 

1

 

Other liabilities

 

459

 

 

526

 

Total liabilities

 

35,092

 

 

31,526

 

  SHAREHOLDERS' EQUITY: Preferred shares, par value: $0.01; 50.0 shares authorized; no shares issued and outstanding

 

—

 

 

—

 

Common shares, par value: $0.01; 200.0 shares authorized; (2023) 74.2 and (2022) 69.9 outstanding before treasury shares

 

1

 

 

1

 

Additional paid-in capital

 

3,762

 

 

2,302

 

Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) of $(272) at 2023 and $(250) at 2022

 

(2,171

)

 

(1,996

)

Treasury shares, at cost; 30.8 shares (2023) and 30.8 shares (2022)

 

(3,908

)

 

(3,908

)

Retained earnings

 

13,542

 

 

12,042

 

Total shareholders' equity

 

11,226

 

 

8,441

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

46,318

 

$

39,966

 

    EVEREST GROUP, LTD.   CONSOLIDATED STATEMENTS OF CASH FLOWS      

Nine Months Ended September 30,

(Dollars in millions)

2023

 

2022

(unaudited) CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss)

$

1,713

 

$

101

 

Adjustments to reconcile net income to net cash provided by operating activities: Decrease (increase) in premiums receivable

 

(812

)

 

(405

)

Decrease (increase) in funds held by reinsureds, net

 

(26

)

 

(35

)

Decrease (increase) in reinsurance recoverables

 

(186

)

 

(662

)

Decrease (increase) in income taxes

 

(18

)

 

(249

)

Decrease (increase) in prepaid reinsurance premiums

 

(153

)

 

(194

)

Increase (decrease) in reserve for losses and loss adjustment expenses

 

1,768

 

 

3,117

 

Increase (decrease) in future policy benefit reserve

 

(2

)

 

(2

)

Increase (decrease) in unearned premiums

 

1,157

 

 

435

 

Increase (decrease) in amounts due to reinsurers

 

233

 

 

242

 

Increase (decrease) in losses in course of payment

 

258

 

 

(150

)

Change in equity adjustments in limited partnerships

 

(124

)

 

(126

)

Distribution of limited partnership income

 

81

 

 

139

 

Change in other assets and liabilities, net

 

(375

)

 

(134

)

Non-cash compensation expense

 

37

 

 

35

 

Amortization of bond premium (accrual of bond discount)

 

(35

)

 

49

 

Net (gains) losses on investments

 

21

 

 

519

 

Net cash provided by (used in) operating activities

 

3,536

 

 

2,680

 

  CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from fixed maturities matured/called/repaid - available for sale

 

1,686

 

 

2,171

 

Proceeds from fixed maturities sold - available for sale

 

468

 

 

1,177

 

Proceeds from fixed maturities matured/called/repaid - held to maturity

 

81

 

 

18

 

Proceeds from equity securities sold

 

126

 

 

1,030

 

Distributions from other invested assets

 

189

 

 

244

 

Cost of fixed maturities acquired - available for sale

 

(5,311

)

 

(5,958

)

Cost of fixed maturities acquired - held to maturity

 

(23

)

 

(133

)

Cost of equity securities acquired

 

(3

)

 

(960

)

Cost of other invested assets acquired

 

(422

)

 

(455

)

Net change in short-term investments

 

(1,338

)

 

568

 

Net change in unsettled securities transactions

 

202

 

 

102

 

Net cash provided by (used in) investing activities

 

(4,346

)

 

(2,196

)

  CASH FLOWS FROM FINANCING ACTIVITIES: Common shares issued (redeemed) during the period for share-based compensation, net of expense

 

(22

)

 

(16

)

Proceeds from public offering of common shares

 

1,445

 

 

—

 

Purchase of treasury shares

 

—

 

 

(60

)

Dividends paid to shareholders

 

(212

)

 

(191

)

Cost of debt repurchase

 

—

 

 

(6

)

Cost of shares withheld on settlements of share-based compensation awards

 

(22

)

 

(19

)

Net cash provided by (used in) financing activities

 

1,188

 

 

(292

)

  EFFECT OF EXCHANGE RATE CHANGES ON CASH

 

(12

)

 

46

 

  Net increase (decrease) in cash

 

367

 

 

238

 

Cash, beginning of period

 

1,398

 

 

1,441

 

Cash, end of period

$

1,765

 

$

1,679

 

  SUPPLEMENTAL CASH FLOW INFORMATION: Income taxes paid (recovered)

$

185

 

$

167

 

Interest paid

 

75

 

 

51

 

  NON-CASH TRANSACTIONS: Reclassification of specific investments from fixed maturity securities, available for sale at fair value to fixed maturity securities, held to maturity at amortized cost net of credit allowances

$

—

 

$

722

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231025504199/en/

Media: Dawn Lauer Chief Communications Officer 908.300.7670 Investors: Matt Rohrmann Head of Investor Relations 908.604.7343