Everest Group, Ltd. (NYSE:EG) Q1 2024 Earnings Call Transcript

Jim Williamson: Yes. Sure. It’s Jim Williamson again. Yes, we’ve been a pretty consistent buyer of reinsurance for our Insurance business. There are a lot of good reasons to procure reinsurance, obviously, it helps us to manage volatility within that line. In a number of cases, particularly our pro rata treaties in North America are quite accretive from a ceding commission perspective. So I think that strategy of using reinsurance strategically to manage our exposure and our economics will continue. I would expect, as the business matures both in North America and then, of course, over time in our international business, you could expect our net to gross ratio to increase as we retain more of our business. But I think those changes will be modest and will occur gradually over time. So I wouldn’t expect any near-term changes in our approach that way.

Operator: And this concludes our question-and-answer session. I would like to turn the conference back over to Juan Andrade for some closing remarks. Please go ahead.

Juan Andrade: Great. Thank you for all the questions and the excellent discussion. And I’ll end really where I started, which is we’re off to a very good start in 2024, with an 88% combined ratio for the quarter and a 20% ROE. And from the prepared remarks and the commentary that we found over the past hour, you see that we are still in a market with strong trading conditions, generating that 17% growth that you saw overall for the first quarter. And then you certainly heard about the opportunities we see in both Reinsurance and Insurance for the remaining part of the year. And lastly, we’re very focused on delivering our 3 year plan, and I think you’ve heard from Mark and from us pretty clearly that we still see that ability to generate excess of 17% TSR on an ongoing basis. So with that, thank you very much, and we’ll talk in the next quarter.

Operator: And the conference has now concluded. Thank you for attending today’s presentation. You may now disconnect. Have a great day.