INVESTOR PRESENTATION THIRD QUARTER 2017 EVEREST RE GROUP, LTD SEON PLACE, 141 FRONT STREET, 4TH FLOOR HAMILTON HM 19, BERMUDA
Cautionary Note on Forward-looking Statements 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 of 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. 2
Corporate Objectives 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. 3
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 Map Color Key Color Mkt Share % 0.1% - 1.0% 1.0% - 1.5% 1.5% - 2.0% 2.0% - 5.0% 5.0% - 6.0% >6.0% Enduring franchise with diversified portfolio of over $6B in premiums 1989 Prem% of RAA 2016 Prem % of RAA Rank Reinsurer ($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 $4,494 6% Market leading returns 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 13% 15% 12% 11% 11% 11% 9% 8% Operating ROE 10% 9% 10% 10% 9% 7% 8% 8% 7% 7% 5% 4% RE CB RNR VR AHL ACGL ENH Peer Average 2016 2015 7% 6% AXS XL AWH 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 4
Generating Shareholder Value TOTAL SHAREHOLDER RETURN Total Value Creation, defined as growth in book value per share + dividends, has averaged 12% annually over the last 5 years Book Value Per Share Accumulated Dividends 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 $202.51 226.45 226.80 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 3Q17 5
The Everest Advantage WELL POSITIONED TO CONTINUE TO BUILD VALUE 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 5.3% group expense ratio and 3.0% expense ratio for reinsurance operations only High-quality, liquid investment portfolio with $18.5 Billion of assets with an average rating of Aa3 Strong Balance Sheet - $8.0 Billion in GAAP equity Diversified Book of Business Reinsurance/Insurance; Property/Casualty; U.S./Non U.S. 2016 Gross Written Premium $6.0 Billion Reinsurance 70% Property 62% Insurance 30% Casualty 38% Experienced Team Strong Cycle Management Diversified Business Platform Disciplined Growth 6
Experienced Management Team Dominic Addesso President and Chief Executive Officer John Doucette EVP and President and CEO of the Reinsurance Division Jonathan Zaffino EVP and President of the North America Insurance Division Craig Howie EVP and Chief Financial Officer and Treasurer Mike Kerner EVP and Head of Strategy and Risk Management Sanjoy Mukherjee EVP, General Counsel and Secretary Managing Director and CEO, Everest Reinsurance (Bermuda), Ltd. Daryl Bradley Executive Vice President Ralph Groce SVP and Chief Information Officer Gail Van Beveren Senior Vice President 7
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 Canada Lloyds 8
Resulting in Strong Momentum 5-YEAR GROWTH FROM 2011 TO 2016 Gross Written Premium Non-Cat Underwriting Income Book Value Per Share 7,000 6,000 5,000 4,000 3,000 2,000 1,000-41% 6,034 4,286 2011 2016 2000.0 1500.0 1000.0 500.0 0.0-500.0-1000.0-1500.0-2000.0 83% 991 543-301 -1,300 2011 2016 Non-cat UW Income Cats 260.00 210.00 160.00 110.00 60.00 10.00-40.00 75% 197.45 112.99 2011 2016 Total Capacity Operating Cash Flow Employees 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 6,878 Equity Mt. Logan 62% 11,152 2011 2016 Total Debt Cat bonds* * Additional $1,250m cat bonds were issued in 1Q17 1800 1600 1400 1200 1000 800 600 400 200 0 91% 1,373 718 2011 2016 1400 1200 1000 800 600 400 200 0 12% 1,121 999 2011 2016 9
Financial Highlights $ IN MILLIONS For the year ended December 31, (in millions) 2017 YTD 2016 2015 2014 2013 2012 Income Statement Data: Gross Premiums Written $ 5,247.5 $ 6,033.9 $ 5,891.7 $ 5,762.9 $ 5,220.4 $ 4,310.5 Net Premiums Earned 4,280.7 5,320.5 5,292.8 5,043.7 4,736.3 4,164.6 Net Investment Income 393.8 473.1 473.5 530.5 548.5 600.2 Operating Income (Loss) -180.6 993.5 1,108.1 1,143.7 1,062.6 715.2 Net Income (Loss) -102.1 996.3 977.9 1,199.2 1,259.4 829.0 Balance Sheet Data: Cash and Investments 18,482.0 17,483.1 16,676.4 16,880.8 16,462.8 16,576.2 Shareholders Equity 7,969.3 8,075.4 7,608.6 7,451.1 6,968.3 6,733.5 Book Value per Common Share 194.05 197.45 178.21 166.75 146.57 130.96 Financial Ratios: Combined Ratio 116.5% 87.0% 85.1% 83.8% 84.6% 93.8% After-Tax Operating ROE -3.0% 12.8% 15.0% 16.3% 16.5% 12.2% Net Income ROE -1.7% 12.8% 13.2% 17.1% 19.5% 14.1% 10
Long Term Performance DEMONSTRATES STRONG CYCLE MANAGEMENT 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% * Weighted average 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 11
Leading Global Reinsurer Everest Reinsurance Ops 2016 2016 Gross Written Premium $4,246.9 Combined Ratio 77.6% Attritional Combined Ratio 81.1% 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 Middle East/Africa 5% Worldwide 4% Latin America 15% Casualty 29% Europe/UK 17% Asia/ Australia 4% Canada 3% USA 52% Property Cat XOL 29% Other Property 42% 12
Building a Premier Global Specialty Insurance Operation Everest Insurance Ops* 2016 2016 Gross Written Premium $1,557.1 Combined Ratio 115.8% Attritional Combined Ratio 97.9% A&H 11% Canada 5% Lloyd's 3% Prop / Short Tail 28% Prof Liability 12% 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 100% 90% 80% 70% 60% 50% 40% Other Casualty 15% Class of Business 63% 38% 26% 100% 90% 80% 70% 60% 50% 40% Workers Comp 26% Distribution 77% 41% Maintain flat, nimble organization and our expense advantage 30% 20% 10% 0% 27% 10% 36% 2010 2016 30% 20% 10% 0% 23% 59% 2010 2016 Short Tail Medium Tail Long Tail Direct Program * 2016 Results exclude Heartland Crop Insurance that was sold in 3Q2016 13
Strong Risk Management Culture WITH CONSIDERABLE FINANCIAL FLEXIBILITY AND CONSERVATIVE PROPERTY CATASTROPHE EXPOSURE LRE.L PML as Percent of Shareholders' Equity As of 7/1/17 Rank based on 1-250 AHL Debt + Preferred Equity to Capital As of 6/30/17 VR ACGL XL AHL AXS AWH RE* CB Partner Re ACGL 0.0% 10.0% 20.0% 30.0% 1-100 1-250 Source: Dowling and company reports *RE s PMLs as of 7/1 net of cat bonds, Mt. Logan, and ILWs. AXS Partner Re RNR CB VR LRE XL AWH RE Source: SNL 0% 10% 20% 30% 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. 14
Favorable Accident Year Loss Development 10 YEAR LOSS RESERVING EXPERIENCE INITIAL TO ULTIMATE 100.0% 90.0% 80.0% 70.0% 60.0% 58.6% 56.6% 65.1% 65.7% 57.7% 56.9% 75.7% 74.2% 90.8% 86.8% 66.0% 59.7% 59.4% 51.3% 57.8% 53.3% 59.1% 56.9% 64.6% 64.6% 65.0% 62.1% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 All Years Initial Loss Ratio Developed Loss Ratio On average, the total loss ratio (including cats) has developed 2.9 points better than initial selection over the last 10 years 15
A Strategy That Embraces Alternative Capital Paradigm CAPITAL MARKETS ADD TO EVEREST S CAPACITY AND INCREASE NET MARGINS 2013 2014 2015 2017 MT LOGAN KILIMANJARO RE LTD. (SERIES 2014-1&2) KILIMANJARO RE LTD. (SERIES 2015-1) KILIMANJARO RE LTD. (SERIES 2017-1&2) Covered Perils: diversified cat exposures across different geographical regions globally Covered Perils: U.S. named storms, U.S. & Canada earthquake Covered Perils: U.S., Canada, Puerto Rico, D.C. names storm and earthquake Covered Perils: U.S and Canada earthquake $833M AUM at 10/1/17 $950M $625M $1,250M EVEREST S CAPITAL MARKETS PLATFORM Assumes reinsurance from Everest Generates fee income on business that is too large for Everest s balance sheet 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 16
Active Capital Management Improves Shareholder Value BOOK VALUE PER SHARE INCREASES 2.5x SINCE 2006 $78.53 6,086 978 5,108-39 $90.43 6,848 1,164 5,685-39 $80.77 6,125 1,165 4,960-671 $115.45 $102.87 7,108 7,090 1,006 807 6,102 6,284-979 -1,486 $112.99 6,879 807 6,071-1,682 $130.96 7,542 808 6,733-2,073 $146.57 7,824 370 486 6,968-2,801 $166.75 9,722 950 689 633 7,451-3,447 $178.21 10,615 1,575 799 633 7,609-4,022 $197.45 11,152 1,575 869 633 8,075-4,604 $194.05 12,260 2,825 833 633 7,969-4,758 Capital Management: Everest historically addresses excess capital through share buybacks Since 2006, Everest has repurchased 43% of its outstanding shares, returning $3.3 billion of capital to shareholders 2m shares remain available under the share repurchase agreement at September 30, 2017 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 3Q17 Dividends to shareholders have more than doubled since 3Q2013 Common Equity Mt. Logan AUM Accumulated Share Repurchases & Dividends Total Debt Cat Bonds BVPS 17
Conservative Leverage and Liquidity FIGURES AS OF 9/30/17 - INVESTABLE ASSETS OF $18.5 BILLION Capitalization Liquidity 100% 15.0 90% 80% 70% 60% 50% 40% 30% 10.7 7.8 7.7 7.3 7.4 10.0 Non U.S. 22% Other 8% Cash & Short Term 5% Government 6% Mortgage/ Asset Backed 17% 20% 6.5 10% 0% 2012 2013 2014 2015 2016 3Q17 5.0 Municipal 4% Equity 7% Corporate 31% 4.9% Senior Debt Junior Sub-Debt Long-Term Sub-Notes 5.4% Senior Debt Common Equity Debt Leverage 18
Strong and Consistent Operating Cash Flows ADD TO STRONG LIQUIDITY PROFILE Gross Written Premiums $7.0 $6.0 $5.0 $4.0 $3.0 GWP Cash Flow '01 WTC Attack $2.8 $4.6 $4.7 $4.1 '04 FL Hurricanes '05 KRW Hurricanes $4.0 $4.1 $3.7 '08 Hurr Ike '08-'09 Financial Crisis/ Recession $4.1 $4.2 $4.3 $4.3 '11 Japan EQ & Thai Floods '12 Hurricane Sandy $5.2 $5.7 '17 HIM Hurricanes & Mexico EQs $5.9 $6.0 $2.5 $2.0 $5.2 $1.5 $1.0 Operating Cash Flows $2.0 $1.0 $1.1 $1.0 $1.9 $1.4 $1.1 $0.5 $1.0 $0.0 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 3Q17 $0.0 19
Significant Total Return to Shareholders 600.0% 1,403.7% 555.7% 500.0% Everest 400.0% S&P 500 300.0% 288.8% 200.0% 164.0% 172.9% 100.0% 0.0% 95.6% 21.1% 11.9% 1 Year 5 Years 10 Years Inception to Date Everest Re total return* over S&P 500: 2015-2016 2011-2016 2006-2016 ITD 9 points 125 points 77 points 848 points *Total Return Includes Price Appreciation and Dividends Source: Bloomberg 20
The Everest Franchise Well Positioned for Success A BUSINESS MODEL THAT IS NOT EASILY REPLICATED Top Tier Reinsurer $6.0B 2016 Gross Written Premiums Significant Scale $12.3B Everest + Mt. Logan + Cat Bonds Global Reach 14 15 Insurance Reinsurance Offices,* 9 outside the US Offices,* 3 outside the US *Including Lloyds Syndicate 2786 Long Term Market Presence 40+ Years of Market Experience Extreme Financial Flexibility 7.4% Debt-to-Capital Ratio Strong Ratings A.M. Best: A+ S&P: A+ Moody s: A1 Long Term Value Creation 12.0% Compound Annual Growth in Book Value per Share, Adjusted for Dividends, since 1995 Efficient Operation Structure 6.4 Points Expense Advantage Relative to Our Reinsurance Peers Significant Market Capitalization S&P 500 Everest Joins the S&P 500 index as a member in June 2017 21
Seon Place, 141 Front Street, 4 th Floor, P. O. Box 845, Hamilton, HM DX, Bermuda