Everest Group, Ltd 8-K, filed Jan 25, 2021
Everest Group, Ltd. (EG)
8-K
2021-01-25
For: 2021-01-25
View Original
Added on
April 08, 2026
About this 8-K
Everest Group, Ltd filed this 8-K on January 25, 2021.
Items reported
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
Current Report Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
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of incorporation)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of
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Emerging growth company
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☐
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
1
N
EWS
R
ELEASE
EVEREST RE GROUP, LTD.
Seon Place, 141 Front Street, 4
th
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.