8-K
Everest Group, Ltd. (EG)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
8-K
Current Report Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
January 25, 2021
Everest Re Group, Ltd.
(Exact name of registrant as specified in its charter)
Bermuda
1-15731
98-0365432
(State or other jurisdiction
(Commission
(IRS Employer
of incorporation)
File Number)
Identification No.)
Seon Place – 4th Floor
141 Front Street
PO Box HM 845
Hamilton
HM 19
,
Bermuda
Not Applicable
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code
441
-
295-0006
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2. below):
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Class
Trading Symbol(s)
Name of Exchange where registered
Common Shares, $0.01 par value
RE
New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of
1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 12(a) of the Exchange Act.
☐
ITEM 7.01
REGULATION FD DISCLOSURE
On January 25, 2021, the registrant issued a news release announcing preliminary financial information for both full
year 2020 and fourth
quarter 2020.
For the full year
2020, the registrant announced
an estimated range of
net income
between
$475
million
and
$525
million
and
an
estimated
range
of
net
operating
income
between
$275
million
and
$325 million.
For the
fourth quarter
of 2020,
the registrant
announced preliminary
pre-tax catastrophe
losses of
$70
million,
net
of
reinsurance
recoveries
and
reinstatement
premiums
which
includes
the
impact
of
Hurricanes
Delta,
Zeta,
Eta
and
Iota
as
well
as
the
Queensland
Australia
hailstorm;
preliminary
pre-tax
COVID-19
losses
of
$76
million, net of reinsurance recoveries; and strengthening of prior year loss reserves by $400 million pre-tax.
ITEM 9.01
FINANCIAL STATEMENTS
AND EXHIBITS
(c)
Exhibits
Exhibit No.
Description
99.1
News Release of the registrant,
dated January 25, 2021
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
EVEREST RE GROUP,
LTD.
By:
/S/ KEITH SHOEMAKER
Keith Shoemaker
Senior Vice President and Comptroller
Dated:
January 25, 2021
EXHIBIT INDEX
Exhibit
Number
Description of Document
Page No.
5
ex991
1
N
EWS
R
ELEASE
EVEREST RE GROUP,
LTD.
Seon Place, 141 Front Street, 4
th
Floor, Hamilton HM 19, Bermuda
Contacts
Media:
Dane
Lopes
Investors: Jon
Levenson
Group Head of Marketing
&
Communications
Head of Investor
Relations
Everest Global
Services,
Inc.
Everest Global Services, Inc.
203.388.3977
908.604.3169
For Immediate Release
Everest
Provides
Preliminary
Information
on Fourth
Quarter
and Full
Year 2020 Results
HAMILTON,
Bermuda --
(BUSINESS WIRE)
– January
25, 2021
– Everest Re Group, Ltd. (“Everest” or
the “Company”)
announced today preliminary
financial results in
advance of its
full quarterly and
full year
earnings to be released on February 8, 2021.
Inclusive
of
the
items
noted
below,
Everest
expects
to
report
full
year
2020
net
income
of
$475-$525
million and operating income of $275-$325 million.
Everest
is
estimating
pre-tax
net
catastrophe
losses
for
the
fourth
quarter
2020
of
$70
million,
net
of
reinsurance and
reinstatement premiums.
The estimate
includes the
impact of
Hurricanes Delta,
Zeta, Eta,
Iota,
and
the
Queensland
Australia
Hailstorm.
These
catastrophe
losses
include
$60
million
in
the
Company’s Reinsurance segment and $10 million in the Insurance segment.
Everest is
also estimating
pre-tax net
Covid-19 Pandemic
(“Pandemic”) losses
for the
fourth quarter
2020
of
$76
million
primarily
for
third-party
lines.
This
amount
includes
$56
million in
the
Company’s
Reinsurance
segment
and $20
million in
the
Insurance
segment
and
is
in
addition
to
the $435
million of
Pandemic
losses
estimated
in
the
first
nine
months
of
2020.
For
full
year
2020,
the
total
Pandemic
loss
provision is $511 million -- over 80% is IBNR.
2
After a comprehensive
annual review
of all
reinsurance and
insurance reserves,
Everest is
increasing prior
year loss
reserves by $400
million. The
amount is
equal to
3.0% of
net loss
reserves as
of September
30,
2020.
This
reserve
strengthening
is
all
in
the
Company’s
Reinsurance
segment
and
primarily
in
long-tail
classes for the 2015-2018 accident
years notably general liability,
professional lines, and auto liability.
The
reserve charge also includes actions on non-CAT
property lines, primarily for the 2017-2019 accident years
and driven by a few large losses to aggregate programs.
Everest Re Group President & CEO Juan C. Andrade commented:
“We
remain
focused
on
the
relentless
execution
of
our
strategies
to
create
a
diversified
portfolio
that
achieves superior risk adjusted returns and
value to our shareholders and customers.
The decisive reserving
actions
we
are
announcing
today
recognize
the
social
inflation
trends
affecting
the
overall
U.S.
Casualty
market and enhance
our already strong
balance sheet. We
have proactively acted
on the affected
portfolios
and we
have confidence
in our
in-force book.
We
are bullish
about our
future and
the earnings
generating
power of our franchise.
Everest continues
to benefit
from excellent
financial strength
and strong
enterprise risk
management. The
fundamentals
of
our
business
are
strong.
Our
Company
is
well
positioned
to
succeed
in
any
market
conditions,
as
evidenced
by
our
growth
and
our
improved
underlying
results
despite
the
many
global
challenges
in
2020.
Our
strong
management
team,
employees,
global
platform,
and
excellent
capabilities
continue to provide superior solutions to our business partners and customers.”
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.
3
About Everest Re Group, Ltd.
Everest
Re
Group,
Ltd.
(“Everest”)
is
a
leading
global
provider
of
reinsurance
and
insurance,
operating
for
close
to
50
years
through
subsidiaries
in
the
U.S.,
Europe,
Singapore,
Canada,
Bermuda,
and
other
territories.
Everest offers
property,
casualty,
and specialty products
through its various
operating affiliates
located in
key markets around the world.
Everest common stock (NYSE:RE) 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.everestre.com
.
All issuing companies may not do business in all jurisdictions.