EVEREST GROUP, LTD.

Everest Group, Ltd. is a Bermuda-based reinsurance and insurance organization that operates as part of the Standard & Poor's 500 Index, serving a diverse group of clients worldwide through its direct and indirect subsidiaries in the U.S. and internationally. The Company's global network spans more than 100 countries across six continents. The global reinsurance and insurance markets are highly competitive and mature, with competitors including U.S., Bermuda, European, and other international reinsurers and insurers, as well as alternative risk providers such as captives, catastrophe bonds, and pools. According to S&P, Everest ranks among the top ten global property and casualty reinsurance groups, and the worldwide net premium written by the Top 40 global reinsurance groups for both life and non-life business was estimated to be $347 billion in 2024 according to data compiled by S&P.

The Company competes in global and local markets with U.S., Bermuda, European, and other international reinsurers and insurers. Primary competitors named in the filing include independent reinsurance and insurance companies, subsidiaries or affiliates of established worldwide insurance companies, reinsurance departments of certain insurance companies, domestic and international underwriting operations including underwriting syndicates at Lloyd's of London, and alternative capital market products and new company formations such as Insurtech companies. The Company's stated competitive advantages include its global franchise, financial strength and capacity, stable and experienced management team, diversified product and distribution offerings, underwriting expertise and disciplined approach, efficient and low-cost operating structure, and effective enterprise risk management practices. For the year ended December 31, 2025, no single customer generated more than 3.6% of the Company's gross written premiums. The Reinsurance segment's ten largest brokers accounted for an aggregate of approximately 60.9% of gross written premiums in 2025, with Marsh McLennan accounting for approximately 22.4% and Aon accounting for approximately 18.7%.

The Company generates revenue through the underwriting of reinsurance and insurance in the U.S., Bermuda, and other international markets, conducted through its Reinsurance and Insurance reportable segments. In 2025, the Company had gross written premiums of $17.7 billion with approximately 72.4% representing Reinsurance and 27.1% representing Insurance, with the remaining 0.5% of gross written premium coming from the 'Other' operating segment. The Company underwrites reinsurance both through brokers and directly with ceding companies, and underwrites insurance principally through brokers, including for surplus lines, and general agent relationships. Approximately 65.9%, 27.0%, and 7.1% of the Company's 2025 gross written premiums were written in the broker reinsurance market, the insurance business, and the direct reinsurance market, respectively. The Company's underwriting strategies emphasize disciplined underwriting, prioritizing underwriting profitability over premium volume and flexibility to adjust and respond to changing market conditions.

The Reinsurance segment writes worldwide property and casualty reinsurance and specialty lines of business on both a treaty and facultative basis, through reinsurance brokers as well as directly with ceding companies. For the year ended December 31, 2025, the Company's Reinsurance segment wrote $12.8 billion of gross written premiums. The segment is comprised of property and casualty reinsurance and specialty lines including Property Pro Rata (36.3% of reinsurance gross written premiums), Property Non-Catastrophe Excess of Loss (5.7%), Property Catastrophe XOL (18.3%), Casualty Pro Rata (21.3%), Casualty XOL (11.5%), and Financial Lines (6.9%). Products include property, catastrophe, casualty, mortgage reinsurance, marine, aviation, engineering, professional lines, credit and surety, motor, agriculture/crop, and political violence coverage.

The Insurance segment markets and distributes a wide range of insurance products and services through various forms of brokers and agents on a worldwide basis, serving multinational corporations and mid-size commercial clients. In 2025, the Company's Insurance segment wrote $4.8 billion of gross written premiums. The segment's lines of business include Accident and Health (9.6% of Insurance gross written premiums), Specialty Casualty (23.4%), Other Specialty (13.4%), Professional Liability (17.3%), Property/Short-Tail (29.8%), and Workers' Compensation (6.6%). Products are written directly, as well as through brokers, including for surplus lines and general agents within the U.S., Bermuda, Canada, Europe, Singapore, and South America.

On October 26, 2025, the Company entered into an agreement with American International Group, Inc. to sell the renewal rights for certain lines of commercial retail insurance business written by the Company in the U.S., U.K. and Asia Pacific, for an aggregate purchase price of $252 million ¹. AIG paid the Company $30 million ² for originating and structuring the transaction. Additionally, on October 26, 2025, the Company entered into an agreement with AIG to sell the renewal rights for certain lines of commercial retail insurance business written by the Company in certain countries in the European Union, for an aggregate purchase price of $49 million ³. Under the sale agreements, AIG has also agreed to pay the Company a total of $10 million ⁴ per month for nine months for specified transition services starting January 1, 2026. Effective October 1, 2025, the Company through its subsidiaries Everest Re and Bermuda Re entered into adverse development reinsurance agreements with State National Insurance Company, Inc. and MS Transverse Insurance Company, reinsuring potential adverse loss development for accident years 2024 and prior arising from substantially all of the Ceding Companies' North American liabilities within the Insurance and Other segments up to a gross limit of $1.2 billion ⁵. The Company transferred $1,250 million ⁶ of in-the-money reserves in consideration for the first two layers upon closing of the transaction, and paid approximately $122 million ⁷ of consideration for the third layer. The Company has a co-participation of $100 million ⁸ in each of the second and third layers. During 2025, the Company repurchased 2,394,763 ⁹ of its common shares at a cost of $797 million ¹⁰ in the open market and paid $335 million ¹¹ in common share dividends.

Total revenues for the year ended December 31, 2025 were $17,496 million ¹², compared to $17,281 million ¹³ in 2024. Net income was $1,591 million ¹⁴ in 2025, compared to $1,373 million ¹⁵ in 2024. The combined ratio improved by 3.7 points to 98.6% ¹⁶ in 2025, compared to 102.3% ¹⁷ in 2024. Shareholders' equity increased by $1.6 billion to $15,461 million ¹⁸ at December 31, 2025 from $13,875 million ¹⁹ at December 31, 2024. Book value per share was $379.83 ²⁰ at December 31, 2025, compared to $322.97 ²¹ at December 31, 2024.

A key growth vector is the Company's focus on its core global reinsurance business as well as its global wholesale and specialty insurance businesses, sharpened by the sale of renewal rights for certain lines of commercial retail insurance business to AIG. The renewal rights of these businesses total an estimated $2 billion ²² of aggregate gross premiums written. The Company's underwriting strategies seek to capitalize on what management believes are its global franchise, financial strength and capacity, stable and experienced management team, diversified product and distribution offerings, underwriting expertise and disciplined approach, efficient and low-cost operating structure, and effective enterprise risk management practices. The Company carefully monitors its mix of business across all operations to seek to avoid unacceptable geographic or other risk concentrations, and its underwriting strategies emphasize disciplined underwriting, prioritizing underwriting profitability over premium volume and flexibility to adjust and respond to changing market conditions.

Another growth vector is the Company's international expansion through its global network spanning more than 100 countries across six continents. The Company's operating subsidiaries include entities in Bermuda, Ireland, the U.K., Chile, Colombia, Mexico, Canada, and the U.S., with branch locations in Singapore, Australia, Switzerland, the Netherlands, Spain, France, Germany, and Italy. The Insurance segment operates through both North America and international markets. The Company's insurance and reinsurance operations allow the Company to execute its strategies by providing access to the global business markets. The Company also participates in Government Sponsored Entities (i.e. Fannie Mae & Freddie Mac) credit risk-sharing transactions for mortgage reinsurance, regularly participating in both Fannie Mae & Freddie Mac single family and multifamily risk sharing programs.

The filing does not contain specific margin trajectory or efficiency targets with exact figures for the upcoming period.

The Company's information technology is a key component of its business operations, with systems and services hosted at public and private cloud service providers across multiple data centers. The Company has implemented security procedures and regularly assesses and enhances its security protocols. Business continuity plans and disaster recovery plans along with periodic testing are maintained. As of February 1, 2026, the Company employed 3,064 persons ²³. The Company is committed to attracting, retaining, and developing exceptional talent, with a newly implemented enterprise-wide program focused on cultivating next-generation skills and an expansion of its early career program to develop future Underwriters, Actuaries, and IT professionals through rotational placements.

During 2025, the Company repurchased 2,394,763 ²⁴ of its common shares at a cost of $797 million ²⁵ in the open market and paid $335 million ²⁶ in common share dividends. On November 7, 2024, the Company's Board approved an amendment to the share repurchase program authorizing the Company and/or its subsidiary Holdings to purchase up to an additional 10.0 million shares resulting in an aggregate authority to purchase 42.0 million of the Company's shares. As of December 31, 2025, the Company and/or its subsidiary Holdings have repurchased 33.7 million ²⁷ of the Company's shares. The Company declared and paid its quarterly cash dividend of $2.00 per share ²⁸ for the second quarter of 2024 through the fourth quarter of 2025. The Company's principal investment objectives are to ensure funds are available to meet its insurance and reinsurance obligations and to maximize after-tax investment income while maintaining a high-quality diversified investment portfolio.

The Company faces structural headwinds from social inflation factors such as uncertain legal system outcomes, increased frequency of high-severity claims, and third-party litigation funding, which have exacerbated loss experience in excess casualty and U.S. liability lines. For the year ended December 31, 2025, the Company increased its loss reserves by $657 million ²⁹, pre-tax and net of reinsurance, primarily driven by net unfavorable development on prior year reserves from elevated loss experience in excess casualty and U.S. liability lines primarily on accident years 2022-2024. The Company also faces headwinds from the potential impact of catastrophic events, with pre-tax net catastrophe losses of $726 million ³⁰ in 2025. Additionally, the Company is subject to regulatory challenges including the potential application of the Bermuda Corporate Income Tax Act 2023, which will apply a 15% corporate income tax to certain Bermuda businesses in fiscal years beginning on or after January 1, 2025, and the OECD's Pillar Two global minimum tax rules.

The Company faces constraints from the highly competitive nature of the global reinsurance and insurance markets, which are subject to pricing cycles that can be pronounced. The entry of alternative capital market products and new company formations, such as Insurtech companies, provide additional sources of reinsurance and insurance capacity which could reduce the Company's market share. The Company also faces geographic and regulatory constraints, as it is subject to regulation under the insurance statutes of various jurisdictions including Bermuda, all U.S. states, Canada, Singapore, Brazil, the U.K., Ireland, Chile, Colombia, Mexico, India, and Australia. The Company's ability to pay dividends and its operating expenses is partially dependent upon dividends from its subsidiaries, which are limited under Bermuda law as well as the laws of the various U.S. states in which its insurance and reinsurance subsidiaries are domiciled.

The Company's results could be materially adversely affected by catastrophic events, with pre-tax net catastrophe losses of $726 million ³¹ in 2025, $755 million ³² in 2024, and $1,055 million ³³ in 2022. The Company faces significant reserve risk, as for the year ended December 31, 2025, the Company increased its loss reserves by $657 million ³⁴, pre-tax and net of reinsurance, primarily driven by net unfavorable development on prior year reserves from elevated loss experience in excess casualty and U.S. liability lines primarily on accident years 2022-2024. A downgrade or withdrawal of the Company's financial strength ratings, which currently carry a negative outlook from A.M. Best, S&P, and Moody's, could adversely affect its ability to market products and write new business. The Company is exposed to credit risk from reinsurers, with $1,253 million ³⁵ recoverable from State National Insurance Company, Inc. as of December 31, 2025 in connection with the ADC reinsurance agreements. Changes in international tax laws, including the Bermuda Corporate Income Tax Act 2023 applying a 15% corporate income tax and the OECD's Pillar Two global minimum tax rules, could reduce net income.

Management's message emphasizes that the Company has significantly fortified its U.S. casualty reserves, while taking aggressive underwriting action in certain classes exposed to social inflation, bolstering talent, and investing in its platform as the Company heads into 2026. The Company's net income of $1.6 billion for the year ended December 31, 2025 is inclusive of unfavorable development of prior-year loss reserves of $657 million ³⁶. The Company's net income of $1.4 billion for the year ended December 31, 2024 is inclusive of unfavorable development of prior-year loss reserves of $1.5 billion ³⁷. Management highlights the entry into an adverse development reinsurance agreement reinsuring potential adverse loss development for accident years 2024 and prior arising out of North American liabilities within the Insurance and Other Segments, and the sale of the renewal rights to certain lines of commercial retail insurance business, which sharpen the Company's focus on its core global reinsurance business as well as its global wholesale and specialty insurance businesses. The strategic priorities emphasized for the period ahead include disciplined underwriting prioritizing profitability over premium volume, careful expansion on existing strengths in the primary insurance market, and facilitating adjustments to the mix of business by geographic region, line of business, and type of coverage.