Slides
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Investor Presentation Fourth Quarter 2025
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This presentation and the accompanying remarks contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. 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 reflect management’s current expectations based on assumptions we believe are reasonable but are not guarantees of performance. Actual results may differ materially from those contained in forward-looking statements made on behalf of the Company. Forward-looking statements involve risks and uncertainties that include, but are not limited to, 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, our ability to execute divestitures, obtain regulatory approvals and effectuate strategic transactions, including the sale of our retail commercial insurance business, investment market and investment income fluctuations, trends in insured and paid losses, catastrophes, pandemics, regulatory and legal uncertainties, and expenses related to divestitures and other factors described in our SEC filings, including but not limited to 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. In this presentation and the accompanying remarks, the Company uses certain non-GAAP financial measures, that may include after-tax net operating income (loss), after-tax net operating income (loss) per diluted share, attritional combined ratio, gross written premiums presented on a comparable basis, net operating income return on equity ("ROE"), underwriting income, and adjusted book value per common share outstanding excluding net unrealized appreciation (depreciation) on fixed maturity, available for sale securities ("URA(D)"). The Company presents these non-GAAP financial measures to facilitate a deeper understanding of the profitability drivers of our business, results of operations, financial condition and liquidity. The Company believes that such measures are important to investors and other interested persons, and that these measures are a useful supplement to GAAP information concerning the Company’s performance. These measures may not, however, be comparable to similarly titled measures used by companies within or outside of the insurance industry. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, or superior to, the Company’s financial measures prepared in accordance with generally accepted accounting principles ("GAAP"). Explanations and available reconciliations of non-GAAP financial measures are included in the appendix on slides 26 through 31. Cautionary Note On Forward-Looking Statements and Non-GAAP Measures 2
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Everest Strategic Overview 3
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Positioned to generate improved performance, consistently Note: For additional information please refer to endnotes on page 25. Purchased adverse development cover Reduces insurance reserve volatility Fortifies U.S. casualty insurance reserves Strengthens balance sheet Renewal rights sale of commercial retail insurance Streamlines operating model Strengthens focus on core Reinsurance and Specialty Insurance Improves operational alignment across both underwriting platforms Additional capital flexibility and optionality XX XXXXXXXXXXXX X More efficient capital deployment towards core strengths Improves expected return profile Enhances shareholder value creation 4 Strategic actions driving improved focus, a stronger balance sheet, and agility Transforming Everest to deliver consistent results
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Purchase of Adverse Development Cover Note: For additional information please refer to endnotes on page 25. KEY TAKEAWAYSTRANSACTION DETAILS $1.2B gross ($1.0B net) Adverse Development Cover purchased from Longtail Re • The ADC covers $5.4 billion of North America Insurance and Other segment liability subject reserves for accident years 2024 & prior1 • Everest transferring $1.25 billion of in-the-money reserves and paying $122 million of consideration • Effective date of October 1, 2025 Everest Retained Reserves ~$4.1B 100% (~$4.1B Retained) In the Money (“ITM”) Reserves $1.25B 100% Ceded ADC Layer 1 Limit ($700mm) 85.7% ($600mm Ceded) ADC Layer 2 Limit ($500mm) 80% ($400mm Ceded) September 2025 Reserves ~$5.4B ITM Attachment ~$4.1B ADC Attachment ~$5.4B Excess ADC Exhaustion ~$6.6B TRANSACTION STRUCTURE Layer 1 • Adverse Development Coverage: $700 million • Co-participation: $100 million • Premium Consideration: $1.25 billion in the money reserves Layer 2 • Adverse Development Coverage: $500 million • Co-participation: $100 million • Premium Consideration: $122 million 5
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Focused on the future of Everest Note: For additional information please refer to endnotes on page 25. 6 Everest is a more focused and agile company, centered around our core underwriting strengths Top-tier reinsurance franchise • A leading reinsurance market around the globe • Nimble capital deployment, broad diversification, and underwriting discipline backed by market-leading risk analytics • Financial strength and scale Global wholesale and specialty insurance platform • Focused wholesale and specialty insurance businesses where we have competitive advantages • Demonstrated underwriting profitability with favorable outlook for consistent performance • Improved agility to navigate market conditions Everest 2025 Portfolio GWP Mix 72% 75% 27% 23% 1% 2% 2025 Actual 2025 Expected Other Insurance Reinsurance The Company expects to re-segment its businesses starting in 1Q 2026 to reflect the sale of the renewal rights of the Commercial Retail Insurance Business, movement of legacy retail insurance business to Other and go-forward Global wholesale and specialty insurance business, which will also include facultative business . “Expected Portfolio” and “Estimated Remaining” refer to estimates of past business mix or results of the go-forward insurance business. The Company expects to furnish historical dat a regarding the re-segmentation after the filing of its 10-K in March 2026.
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Renewal Rights Sale of Commercial Retail Insurance Note: For additional information please refer to endnotes on page 25. 7 INSURANCE DIVISION GWP BUSINESS MIX TRANSACTION OVERVIEW • The transaction meaningfully streamlines Everest’s operating model and strengthens its focus on its core businesses • AIG obtained all the rights to renew Everest’s U.S., U.K., European, and Asia Pacific Commercial Retail businesses • The transaction resulted in meaningful total value to Everest, including the release of significant capital over time • Recognized a net benefit of $127.3 in the other income line associated with the sale of Commercial Retail Insurance Renewal Rights to AIG in 4Q’25 • We expect approximately $150 million of restructuring charges in 2026 associated with our exit from the Commercial Retail Insurance business $4.8B ~$3.6B Facultative Property / Short Tail Workers' Comp Other Specialty Professional Liability Specialty Casualty Accident & Health 2025 Actual 2025 Estimated Remaining The Company expects to re-segment its businesses starting in 1Q 2026 to reflect the sale of the renewal rights of the Commercial Retail Insurance Business, movement of legacy retail insurance business to Other and go-forward Global wholesale and specialty insurance business, which will also incl ude facultative business. “Expected Portfolio” and “Estimated Remaining” refer to estimates of past business mix or results of the go -forward insurance business. The Company e xpects to furnish historical data regarding the re-segmentation after the filing of its 10-K in March 2026.
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Global Wholesale and Specialty Insurance Note: For additional information please refer to endnotes on page 25 . 8 BUSINESS OVERVIEW PROFITABLE GROWTH OPPORTUNITY North America • Evolution (~$500M GWP) – Wholesale-exclusive E&S platform that ranks within the top 25 in U.S. E&S commercial market share • Specialty (~$225M) – Established teams with strong track records, providing solutions for complex risks in credit & political risk, surety, construction and transactional liability • Accident & Health (~$400M) – A&H solutions with focus on accident and supplemental health, targeting underserved markets • Everest Underwriting Partners (~$500M) – Profitable programs business made up of property and financial lines International • Everest Global Markets (~$800M) – Established 10-year track record in the Lloyd’s of London and London market business focused on complex risks and core P&C products across Asia Pacific Global Facultative – ~$1.2B of differentiated individual risk and hybrid solutions for complex risks and core clients EXPECTED 2025 PORTFOLIO - ~$3.6B GWP • Strong demand for coverage of complex risks driving opportunity to capitalize on favorable conditions in core markets • Focused on improving the mix of the portfolio, expanding in short-tail and specialty lines and remaining disciplined in casualty lines • Attritional combined ratio has historically averaged in the high-90% range and is targeting a mid-90% range as the portfolio continues to optimize its business mix 31% 21%19% 12% 15% 3% Casualty Property Specialty A&H Programs Financial Lines The Company expects to re-segment its businesses starting in 1Q 2026 to reflect the sale of the renewal rights of the Commercial Retail Insurance Business, movement of legacy retail insurance business to Other and go-forward Global wholesale and specialty insurance business, which will also incl ude facultative business. “Expected Portfolio” and “Estimated Remaining” refer to estimates of past business mix or results of the go-forward insurance business. The Company expects to furnish historical data regarding the re-segmentation after the filing of its 10-K in March 2026.
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Leading global platform for P&C (re)insurance Tier-1 lead market global reinsurer Focused specialty and wholesale insurance strategy Net acquirer of top talent Streamlined operating model focused on core strengths High-quality investment portfolio Balance sheet strength and nimble capital deployment 9 How Everest Builds Shareholder Value Note: For additional information please refer to endnotes on page 25. Targeting a Mid-Teens TSR2 Over the Cycle
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Quarterly and Annual Results Summary 10
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REINSURANCE, INSURANCE, AND OTHER 3 GWP 4 $9.0 $9.2 $11.5 $12.9 $12.8 $0.2 $0.3 $0.3 $0.2 $0.1 $3.8 $4.4 $4.9 $5.1 $4.8$13.1 $14.0 $16.6 $18.2 $17.7 $0.00 $5.00 $10.00 $15.00 $20.00 2021 2022 2023 2024 2025 Reinsurance Other Insurance 9.4% 12.0% 11.0% 1/1/2019 7/1/2025 1/1/2026 Southeast U.S., Wind 86.9% 87.6% 88.9% 2023 2024 2025 ATTRITIONAL COMBINED RATIO 4,5 AFTER TAX NET 1:100 PML AS A % OF GROUP EQUITY EXCLUDING UNREALIZED GAINS/(LOSSES)9 6 11 7 $’s in USD billions Note: For additional information please refer to endnotes on page 24. 6 6 7 Diversified reinsurance and insurance P&C franchise Everest – A Leading Global Platform
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26.5%10 9.2% 13.1% 2023 2024 2025 Everest Group Financial Highlights, Total Shareholder Return and Net Operating Income 2025 FULL YEAR HIGHLIGHTS Sharpened focus on Reinsurance and Insurance business Net investment income of $2.1 billion, a company record, reflecting higher assets under management and strong alternative investment returns Growth in targeted classes including property and specialty lines was strong, offset by continued discipline, particularly in U.S. casualty Fortified U.S. casualty reserves and entered into adverse development cover 11 TOTAL SHAREHOLDER RETURN • Our primary metric for measuring financial performance is Total Shareholder Return (“TSR”), defined as annual growth in Book Value Per Share (excluding Unrealized Gains and Losses on Available for Sale Fixed Maturity Investments) plus Dividends Per Share $2,776 $1,289 $1,875 2023 2024 2025 NET OPERATING INCOME 12$’s in USD millions Note: For additional information please refer to endnotes on page 25.
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Everest Reinsurance Division Financial Highlights GROSS WRITTEN PREMIUM 57.7% 57.0% 57.1% 2023 2024 2025 8 85.1% 84.0% 84.7% 2023 2024 2025 ATTRITIONAL COMBINED RATIO 5 ATTRITIONAL LOSS RATIO 5 REINSURANCE HIGHLIGHTS 4 $11,460 $12,941 $12,825 2023 2024 2025 13 2025 FOURTH QUARTER HIGHLIGHTS • Gross written premiums decreased 3.6% on a constant dollar basis and excl. reinstatement premiums, to approximately $3.2 billion. • Growth in property catastrophe XOL and specialty lines, more than offset by continued discipline in casualty lines. • Our preferred market position allowed us to shape our signing to maximize expected profitability at Jan. 1, 2026 renewals 6 $’s in USD millions Note: For additional information please refer to endnotes on page 25. 2025 FULL YEAR HIGHLIGHTS • Gross written premiums decreased 1.2% on a constant dollar basis and excl. reinstatement premiums, to approximately $12.7 billion. • Strong growth in property and specialty lines, offset by continued discipline in casualty lines. • Attritional loss ratio increased 10 basis points to 57.1%8, and the attritional combined ratio increased 70 basis points to 84.7%5,6,7. 6 6
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Everest Insurance Division Financial Highlights GROSS WRITTEN PREMIUM 64.0% 62.8% 67.8% 3Q23 YTD 3Q24 YTD 3Q25 YTD 92.0% 91.8% 99.2% 3Q23 YTD 3Q24 YTD 3Q25 YTD ATTRITIONAL COMBINED RATIO 5 ATTRITIONAL LOSS RATIO 5 INSURANCE YTD HIGHLIGHTS 4 $3,426 $3,728 $3,706 3Q23 YTD 3Q24 YTD 3Q25 YTD 14 2025 FOURTH QUARTER HIGHLIGHTS • Gross written premiums decreased 20.1% on a constant dollar basis to $1.1 billion. • Growth in lines with better expected margins was more than offset by reductions in certain casualty lines, as well as our exit from commercial retail insurance • Attritional loss and combined ratios both decreased, despite our conservative approach to setting initial loss picks 7 7 $’s in USD millions Note: For additional information please refer to endnotes on page 25. GROSS WRITTEN PREMIUM 63.3% 68.1% 68.0% 2023 2024 2025 8 91.6% 97.5% 100.5% 2023 2024 2025 ATTRITIONAL COMBINED RATIO 5 ATTRITIONAL LOSS RATIO 5 INSURANCE HIGHLIGHTS 4 $4,888 $5,078 $4,790 2023 2024 2025 7 2025 FULL YEAR HIGHLIGHTS • Gross written premiums decreased 5.7% on a constant dollar basis and excl. reinstatement premiums, to approximately $4.8 billion. • Reduced future volatility with $1.2 billion ADC, attaching over strengthened reserve balance. • Sharpened focus on core business with renewal rights sale of retail commercial insurance business
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Everest – Quarterly Financial Highlights Repurchased ~$800 million of common shares in 2025 and continue to view share repurchases as very attractive in 2026 Efficient capital structure including $2.6 billion in long term debt at attractive interest rates EQUITY AND CAPITAL RESOURCES $15.5 billion in shareholders’ equity, excluding $5 million of unrealized gains on the fixed maturity portfolio, resulting in a TSR 2 of 13.1% INVESTMENT INCOME AND CASH FLOW Operating cash flow of $3.1 billion for the full year, impacted by the consideration paid for the adverse development cover Strong net investment income driven by increased assets under management and solid alternative investment returns; new money yields remain attractive $45.4 billion in invested assets 3.4 -year fixed income duration AA - average credit quality 15 Note: For additional information please refer to endnotes on page 25.
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Transforming Everest’s Risk Profile Very attractive risk adjusted returns & targeted growth in attractive property lines • The above chart for Illustrative purposes, as of 1/1/2026 Capital at Risk Earnings at Risk 2021 2019 2022 Superior Risk / Return Economics within our Defined Risk Appetite 2020 After Tax Net 1:100 PML as a % of Group Equity Excluding URGL 9 2024 16 2023 9.3% 10.7% 7.8% 11.0% 12.0% 9.4% 1/1/20267/1/20251/1/2019 1 in 100 California, Earthquake Southeast U.S., Wind 2025 Note: For additional information please refer to endnotes on page 25. 2026
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Everest Segment Summary 17
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Preferred Lead Market Reinsurance Franchise HISTORY OF CONSISTENT GWP GROWTH3 Leading Reinsurance Platform • Leading global P&C reinsurer with a value proposition and relationships to continue to boost our leadership position around the globe and maximize our portfolio’s performance • Deliberate efforts to optimize our portfolio and reduce cat volatility continue to improve our risk adjusted returns. • Strong franchise allows us to compete favorably in any environment $7.2 $9.0 $9.2 $11.5 $12.9 $12.8 2020 2021 2022 2023 2024 2025 STABLE ATTRITIONAL COMBINED RATIO4,5 31% 36% 7% 6% 16% 18% 25% 21% 14% 12% 7% 7% 2021 2025 Financial Lines Casualty XOL Casualty Pro Rata Property Cat XOL Property Non-Cat XOL Property Pro Rata PROVIDING STABLE, CONSISTENT CAPACITY TO CORE MARKETS (BASED ON FULL YEAR DATA) 85.1% 86.2% 87.8% 85.1% 84.0% 84.7% 2020 2021 2022 2023 2024 2025 7 18 6 6 $’s in USD billions Note: For additional information please refer to endnotes on page 25.
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HISTORY OF CONSISTENT GWP GROWTH3 Global Insurance Strategy Focused on Profitable Growth ATTRITIONAL COMBINED RATIO4,5 SHAPING PORTFOLIO TO RESPOND TO GLOBAL MARKET TRENDS (BASED ON FULL YEAR DATA) $3.1 $3.8 $4.4 $4.9 $5.1 $4.8 2020 2021 2022 2023 2024 2025 11% 10% 34% 23% 20% 17% 6% 13% 12% 7% 18% 30% 2021 2025 Property / Short Tail Workers' Comp Other Specialty Professional Liability Specialty Casualty Accident & Health Focused Go-Forward Insurance Strategy • Sharpened focus on wholesale and specialty business with renewal rights sale of retail commercial insurance • Reduced future volatility with $1.2 billion ADC, attaching over strengthened reserve balance • Armed with the talent, tools and capabilities to deliver improved underwriting results • Refocused portfolio delivers a more balanced, diversified, and improved business mix 94.7% 91.6% 90.7% 91.6% 97.5% 100.5% 2020 2021 2022 2023 2024 2025 19 7 $’s in USD billions Note: For additional information please refer to endnotes on page 25.
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Decisive Actions to Improve Reserve Position 20 Note: For additional information please refer to endnotes on page 25. RESERVE UPDATE U.S. CASUALTY IBNR AS % OF TOTAL RESERVES U.S. CASUALTY PAID TO ULTIMATES Reinsurance • IBNR levels remain stable reflecting prudent loss picks and improved loss experience • Maintaining enhanced loss picks and embedding prudence across recent accident years • Increased mix of short tail business • Continue to see significant embedded margin from short-tail lines, which we are taking a measured approach to releasing Insurance • IBNR as a % of total reserves has increased 12- points on average since 2020 • Paid to incurred ratios have decreased steadily • Enhanced loss picks by mid-single digits across the portfolio • Not taking credit for the underwriting improvements made across the portfolio to maintain conservatism Other • Hired CEO to manage legacy business • Loss experience developing as expected Casualty remediation & rebalanced portfolio driving improved loss experience 0% 20% 40% 60% 80% 100% 72 mo 48 mo 24 mo AY Development Age Insurance 2023 Insurance 2025 Reinsurance 2023 Reinsurance 2025 0% 20% 40% 60% 80% 100% 72 mo 48 mo 24 mo AY Development Age Insurance 2023 Insurance 2025 Reinsurance 2023 Reinsurance 2025
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INVESTED ASSET PORTFOLIO COMPOSITION AS OF DECEMBER 31, 2025 22% 31% 22% 13% 10% 0% 2% 0% Corporate Mortgage / Asset Backed Non U.S. Fixed Income Private Equity and Other Alternatives Cash & Short Term Public Equity Government Municipal Everest Investment Portfolio $45.4B total invested assets, of which 87% are in fixed income and cash/short -term securities 3.4 -year average duration of the fixed income portfolio, with an AA - average credit quality $562 million in net investment income for 4Q25, a company record QUARTERLY AND YEAR TO DATE HIGHLIGHTS • Portfolio diversification • High degree of liquidity • Strong credit quality • Asset/liability duration matching • Optimize risk adjusted return and capital efficiency INVESTMENT PORTFOLIO GUIDING PRINCIPLES Dual strategy approach: Stable income and total return 21Note: For additional information please refer to endnotes on page 25.
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Appendix 22
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Financial Highlights Current and Historical For the year ended December 31, ($ in millions, except per share data) 4Q25 2025 2024 2023 2022 2021 BALANCE SHEET Cash and Investments $45,429 $45,429 $41,531 $37,142 $29,872 $29,673 Shareholders’ equity $15,461 $15,461 $13,875 $13,202 $8,441 $10,139 Book value per common share $379.83 $379.83 $322.97 $304.29 $215.54 $258.21 RESULTS Gross written premiums $4,260 $17,706 $18,232 $16,637 $13,952 $13,050 Net investment income $562 $2,124 $1,954 $1,434 $830 $1,165 Net operating income (loss) $549 $1,875 $1,289 $2,776 $1,065 $1,154 per diluted common share $13.26 $44.54 $29.83 $66.39 $27.08 $28.97 Net income (loss) $446 $1,591 $1,373 $2,517 $597 $1,379 per diluted common share $10.77 $37.80 $31.78 $60.19 $15.19 $34.62 Dividends paid $2.00 $8.00 $7.75 $6.80 $6.50 $6.20 FINANCIAL RATIOS Combined ratio 98.4% 98.6% 102.3% 90.9% 96.0% 97.8% Attritional combined ratio4,5 89.9% 88.9%7 87.6%6 86.9%6 87.4% 87.6% After-tax net operating return on average adjusted equity 14.2% 12.4% 9.0% 23.1% 10.6% 12.2% Net income (loss) return on average equity 11.5% 10.5% 9.6% 20.9% 6.0% 14.6% 23 Note: For additional information please refer to endnotes on page 25.
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Tracking Total Shareholder Return ($ in millions, except per share data) 2025 2024 2023 BALANCE SHEET DATA Reported Shareholders' Equity $15,461 $13,875 $13,202 Net unrealized gains / (losses) $5 $(849) $(723) Shareholders Equity excluding URGL $15,455 $14,724 $13,925 BOOK VALUE PER SHARE DATA Reported BVPS $379.83 $322.97 $304.29 Number of shares outstanding 40.7 43.0 43.4 TSR DRIVERS BVPS excluding URGL $379.70 $342.74 $320.95 Dividends per share $8.00 $7.75 $6.80 YTD Annualized Total Shareholder Return (“TSR”) 13.1% 9.2% 26.5%10 Total Shareholder Return (“TSR”): Annual growth in Book Value per Share, excluding Unrealized Gains and Losses (“URGL”) on Available for Sale Fixed Maturity Investments, plus Dividends per Share EVEREST FINANCIAL RETURN OBJECTIVE 24 Note: For additional information please refer to endnotes on page 25.
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Endnotes 25 1 Excluding, among others, losses related to the Ceding Companies’ Asbestos and Environmental reserves included in the Other Se gment 2 Total Shareholder Return (“TSR”) is annual growth in Book Value Per Share excluding Unrealized Gains and Losses on Fixed Matu rity Available for Sale Securities, plus Dividends Per Share 3 Our other segment primarily includes the results of our sports and leisure business that was sold in October 2024, consisting of policies written prior to the sale and policies renewed and certain new business on the Company’s paper post -sale. It also includes run-off asbestos and environmental exposures, certain discontinued insurance programs primarily written prior to 2012, and certain discontinued insurance and re insurance coverage classes. The Other segment does not generally sell insurance or reinsurance products but are responsible for the management o f existing policies and settlement of related losses. The only noteworthy exception relates to a limited number of renewed and new policies written o n the Company’s paper by the purchaser of the sports and leisure business referred to above, for a finite period of time post-closing. 4 Prior years were restated to reflect segment reclassifications and adjusted attritional ratios calculations to include the im pact of CECL. 5 Attritional ratios exclude catastrophe losses, net catastrophe reinstatement premiums, prior year development, COVID -19 losses, and losses from the Russia/Ukraine war. 6 Excludes approximately $68M and $94M of profit commission related to loss reserves releases for the year ended December 31, 2024 and 2023, respectively. When including this profit commission, the Group’s reported attritional combined ratio is 88.1% and 87.6% for t he year ended December 31, 2024 and 2023, respectively. When including this profit commission, the Reinsurance reported attritional combined ratio is 84.6% a nd 86.1% for the year ended December 31, 2024 and 2023, respectively. 7 Excludes approximately $34M of profit commission related to loss reserves releases for the third quarter 2025, as well as a $ 70M impact of the Washington D. C. aviation losses from first quarter 2025, net of reinsurance recoveries and reinstatement premiums. When add ing these items back, the Group, Reinsurance and Insurance’s reported attritional combined ratio is 89.6%, 85.5% and 100.7% for the year ended December 31, 2025, respectively. 8 Excludes approximately a $70M impact of the Washington D. C. aviation losses from first quarter 2025, net of reinsurance reco veries and reinstatement premiums, a $61M and $9M impact to the Reinsurance and Insurance segments, respectively . When including this impact, the Reinsurance reported attritional loss ratio is 57.7% for the year ended December 31, 2025. When including this impact, the Insurance reported attr itional loss ratio is 68.3% for the year ended December 31, 2025. 9 Calculated as the 1:100 net economic loss as of January 1, divided by Everest’s shareholders’ equity excluding unrealized gai ns/(losses) on available for sale fixed maturity investments of the preceding December 31, and preceding June 30 for 7/1/25 PMLs. 10 2023 Total Shareholder Return includes a 5.2-point benefit from the deferred tax asset associated with the change in Bermuda ta x law. 11 Adverse development cover as an October 1, 2025, effective date.
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After-tax net operating income (loss) (also referred to in this Investor Presentation as net operating income (loss)) consists of net income (loss) excluding after-tax net gains (losses) on investments and after-tax net foreign exchange income (expense). Although net gains (losses) on investments and net foreign exchange income (expense) are an integral part of the Company’s reinsurance/insurance operations, the determination of net gains (losses) on investments and foreign exchange income (expense) is independent of the reinsurance/insurance underwriting process. The Company believes that the level of net gains (losses) on investments and net foreign exchange income (expense) for any particular period are not indicative of the performance of the underlying business in that particular period. Providing only a GAAP presentation of net income (loss) makes it more difficult for users of the financial information to evaluate the Company’s success or failure in its basic business and may lead to incorrect or misleading assumptions and conclusions. The Company understands that the equity analysts who follow the Company focus on after-tax net operating income (loss) in their analyses for the reasons discussed above. The Company provides after-tax net operating income (loss) to investors so that they have what management believes to be a useful supplement to GAAP informationconcerning the Company’s performance. Information Regarding Non-GAAP Financial Measures: After-tax Net Operating Income (Loss) and After-tax Net Operating Income (Loss) Per Diluted Share 26 Quarter-to-Date For the year ended (Dollars in millions, except per share amounts) December 31, December 31, December 31, December 31, December 31, December 31, 2025 2025 2024 2023 2022 2021 Amount: After-tax net operating income (loss) $ 549 $ 1,875 $ 1,289 $ 2,776 $ 1,065 $ 1,154 After-tax net gains (losses) on investments (69) (115) 12 (236) (366) 202 After-tax net foreign exchange income (expense) (34) (169) 72 (23) (102) 24 Net income (loss) $ 446 $ 1,591 1,373 $ 2,517 $ 597 $ 1,379 Per Diluted Share: After-tax net operating income (loss) $ 13.26 $ 44.54 $ 29.83 $ 66.39 $ 27.08 $ 28.97 After-tax net gains (losses) on investments (1.66) (2.73) 0.28 (5.65) (9.30) 5.06 After-tax net foreign exchange income (expense) (0.82) (4.01) 1.67 (0.55) (2.60) 0.60 Net income (loss) $ 10.77 $ 37.80 $ 31.78 $ 60.19 $ 15.19 $ 34.62
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The loss ratio is calculated as the sum of total incurred losses and loss adjustment expenses, divided by net premiums earned. The attritional loss ratio is defined as the loss ratio, adjusted to exclude catastrophe losses, net catastrophe reinstatement premiums, prior year development, COVID-19 losses. The Company believes the attritional loss ratio is useful to management and investors because the adjusted ratio provides forbetter comparability and more accurately measure the Company’s underlying underwriting performance. The following table is a reconciliation of the loss ratio and attritional loss ratio for the periods noted: Information Regarding Non-GAAP Financial Measures: Attritional Loss Ratio 27 Quarter-to-Date For the year ended December 31, December 31, December 31, December 31, December 31, December 31, 2025 2025 2024 2023 2022 2021 Reinsurance: Loss ratio 63.6 % 64.1 % 62.2 % 58.1 % 69.4 % 71.9 % Adjustment for catastrophe losses (6.9) % (6.6) % (6.8) % (4.6) % (10.8) % (12.7) % Adjustment for reinstatement premiums — % 0.3 % 0.4 % 0.1 % 0.8 % 0.5 % Adjustment for prior year development (12) 0.1 % (0.2) % 1.1 % 4.1 % 1.6 % (0.1) % Adjustment for other items 0.2 % 0.1 % — % — % (0.5) % — % Attritional loss ratio 57.0 % 57.7 % 57.0 % 57.7 % 60.4 % 59.6 % Adjustment for DC aviation losses — % (0.6) % — % — % — % — % Attritional combined ratio excluding profit commission and DC aviation losses 57.0 % 57.1 % 57.0 % 57.7 % 60.4 % 59.6 % Insurance: Loss ratio 81.5 % 82.0 % 101.2 % 72.3 % 68.1 % 67.6 % Adjustment for catastrophe losses (1.6) % (1.1) % (3.4) % (0.6) % (4.2) % (5.9) % Adjustment for reinstatement premiums — % — % — % — % — % — % Adjustment for prior year development (12) (11.1) % (12.5) % (29.6) % (8.3) % (1.1) % 1.3 % Adjustment for other items (0.1) % (0.1) % (0.1) % — % — % — % Attritional loss ratio 68.6 % 68.3 % 68.1 % 63.3 % 62.8 % 63.0 % Adjustment for DC aviation losses — % (0.2) % — % — % — % — % Attritional combined ratio excluding profit commission and DC aviation losses 68.6 % 68.0 % 68.1 % 63.3 % 62.8 % 63.0 % Group: Loss ratio 68.8 % 69.8 % 74.4 % 62.7 % 68.7 % 71.0 % Adjustment for catastrophe losses (5.6) % (5.3) % (5.9) % (3.5) % (9.0) % (10.9) % Adjustment for reinstatement premiums — % 0.2 % 0.3 % 0.1 % 0.6 % 0.4 % Adjustment for prior year development (12) (3.1) % (4.2) % (8.8) % — % — % 0.1 % Adjustment for other items 0.1 % 0.1 % — % — % (0.4) % — % Attritional loss ratio 60.2 % 60.6 % 60.1 % 59.3 % 60.0 % 60.6 % Adjustment for DC aviation losses — % (0.5) % — % — % — % — % Attritional combined ratio excluding profit commission and DC aviation losses 60.2 % 60.1 % 60.1 % 59.3 % 60.0 % 60.6 % (12) Development on prior year catastrophe and COVID -19 losses are reflected in the prior year development line.
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The combined ratio is calculated as the sum of total incurred losses and loss adjustment expenses, commission and brokerage expenses, and other underwriting expenses, divided by net premiums earned. The attritional combined ratio is defined as the combined ratio, adjusted to exclude catastrophe losses, net catastrophe reinstatement premiums, prior year development, and COVID-19 losses. The Company believes the attritional combined ratio is useful to management and investors because the adjusted ratio provides for better comparability and more accurately measure the Company’s underlying underwriting performance. The following table is a reconciliation of the combined ratio and attritional combined ratio for the periods noted: Information Regarding Non-GAAP Financial Measures: Attritional Combined Ratio 28 Quarter-to-Date For the year ended December 31, December 31, December 31, December 31, December 31, December 31, 2025 2025 2024 2023 2022 2021 Reinsurance: Combined ratio 91.2 % 91.7 % 89.7 % 86.4 % 96.5 % 98.2 % Adjustment for catastrophe losses (6.9) % (6.6) % (6.8) % (4.6) % (10.8) % (12.7) % Adjustment for reinstatement premiums — % 0.5 % 0.6 % 0.2 % 1.1 % 0.8 % Adjustment for prior year development (12) 0.1 % (0.2) % 1.1 % 4.1 % 1.6 % (0.1) % Adjustment for other items 0.3 % 0.2 % — % — % (0.5) % — % Attritional combined ratio 84.6 % 85.5 % 84.6 % 86.1 % 87.8 % 86.2 % Adjustment for profit commission and DC aviation losses — % (0.8) % (0.6) % (1.0) % — % — % Attritional combined ratio excluding profit commission and DC aviation losses 84.6 % 84.7 % 84.0 % 85.1 % 87.8 % 86.2 % Insurance: Combined ratio 117.0 % 114.6 % 130.7 % 100.5 % 96.0 % 96.2 % Adjustment for catastrophe losses (1.6) % (1.1) % (3.4) % (0.6) % (4.2) % (5.9) % Adjustment for reinstatement premiums — % — % — % — % — % — % Adjustment for prior year development (12) (11.1) % (12.5) % (29.6) % (8.3) % (1.1) % 1.3 % Adjustment for other items (0.1) % (0.2) % (0.2) % — % — % — % Attritional combined ratio 104.1 % 100.7 % 97.5 % 91.6 % 90.7 % 91.6 % Adjustment for profit commission and DC aviation losses — % (0.3) % — % — % — % — % Attritional combined ratio excluding profit commission and DC aviation losses 104.1 % 100.5 % 97.5 % 91.6 % 90.7 % 91.6 % Group: Combined ratio 98.4 % 98.6 % 102.3 % 90.9 % 96.0 % 97.8 % Adjustment for catastrophe losses (5.6) % (5.3) % (5.9) % (3.5) % (9.0) % (10.9) % Adjustment for reinstatement premiums — % 0.4 % 0.5 % 0.1 % 0.8 % 0.6 % Adjustment for prior year development (12) (3.1) % (4.2) % (8.8) % — % — % 0.1 % Adjustment for other items 0.2 % 0.1 % — % — % (0.4) % — % Attritional combined ratio 89.9 % 89.6 % 88.1 % 87.6 % 87.4 % 87.6 % Adjustment for profit commission and DC aviation losses — % (0.7) % (0.4) % (0.7) % — % — % Attritional combined ratio excluding profit commission and DC aviation losses 89.9 % 88.9 % 87.6 % 86.9 % 87.4 % 87.6 % (12) Development on prior year catastrophe and COVID -19 losses are reflected in the prior year development line.
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The Company has included in this Investor Presentation certain changes in gross written premium on a comparable basis, reflecting constant currency basis and excluding reinstatement premiums. Constant currency basis excludes the impact of foreign exchange rates. The Company provides change in gross written premium on a comparable basis to investors so that they have what management believes to be a useful supplement to GAAP information concerning the Company’s performance. The following tables are a reconciliation of gross written premium and period-over-period changes on a GAAP basis to the non-GAAP comparable basis for the periods noted: Information Regarding Non-GAAP Financial Measures: Gross Written Premium on a Comparable Basis 29 Quarter-to-Date (Dollars in millions) December 31, 2025 December 31, 2024 Change (unaudited) Gross Written Premium Gross Written Premium % Impact Group $ 4,260 $ 4,671 (8.8)% Adjustment for gross CAT reinstatement premiums — (51) 1.1 % Adjustment for foreign exchange effect — 39 (0.8)% Group (comparable basis) $ 4,259 $ 4,659 (8.6)% Reinsurance $ 3,157 $ 3,291 (4.1)% Adjustment for gross CAT reinstatement premiums — (51) 1.6 % Adjustment for foreign exchange effect — 33 (1.0)% Reinsurance (comparable basis) $ 3,157 $ 3,273 (3.6)% Insurance $ 1,084 $ 1,350 (19.7)% Adjustment for gross CAT reinstatement premiums — — — % Adjustment for foreign exchange effect — 6 (0.5)% Insurance (comparable basis) $ 1,084 $ 1,356 (20.1)% (Some amounts may not reconcile due to rounding.)
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Information Regarding Non-GAAP Financial Measures: Gross Written Premium on a Comparable Basis 30 Year-to-Date (Dollars in millions) December 31, 2025 December 31, 2024 Change (unaudited) Gross Written Premium Gross Written Premium % Impact Group $ 17,706 $ 18,232 (2.9)% Adjustment for gross CAT reinstatement premiums (99) (103) — % Adjustment for foreign exchange effect — 49 (0.3)% Group (comparable basis) $ 17,606 $ 18,178 (3.1)% Reinsurance $ 12,825 $ 12,941 (0.9)% Adjustment for gross CAT reinstatement premiums (99) (103) — % Adjustment for foreign exchange effect — 46 (0.4)% Reinsurance (comparable basis) $ 12,726 $ 12,884 (1.2)% Insurance $ 4,790 $ 5,078 (5.7)% Adjustment for gross CAT reinstatement premiums — — — % Adjustment for foreign exchange effect — 3 (0.1)% Insurance (comparable basis) $ 4,790 $ 5,082 (5.7)% (Some amounts may not reconcile due to rounding.)
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Net Operating income ROE is calculated by dividing after-tax net operating income (loss) by average shareholders’ equity, adjusted for average net unrealized depreciation (appreciation) of fixed maturity, available for sale securities. A reconciliation of net income, the most comparable GAAP measure, to net operating income is presented above. The Company believes net operating income ROE is a useful measure for management and investors as it allows for better comparability and removes variability when assessing the results of operations. A reconciliation of Net Operating Income ROE and Net Income ROE is shown below. Annualized TSR (“TSR”) is calculated as year-to-date growth in book value per common share outstanding (excluding URA(D)) plus year-to-date dividends per share. Book value per common share outstanding excluding net unrealized appreciation (depreciation) of fixed maturity, available for sale securities (“URA(D)”) is a non-GAAP measure, and is calculated as reported shareholders’ equity less URA(D), divided by common shares outstanding. Book value per share is the most comparable GAAP measure. The Company believes this metric is useful to management and investors as it shows the value of shareholder returns on a per share basis after eliminating the variability of investments held at fair value. A reconciliation of Net Operating Income ROE and Net Income ROE, and Book value per common share outstanding excluding URA(D) is shown below: Information Regarding Non-GAAP Financial Measures: Net Operating Income Return On Equity (“ROE”) & Annualized Total Shareholder Return 31 Quarter-to-Date For the year ended (Dollars in millions, except per share amounts) December 31, December 31, December 31, December 31, December 31, December 31, 2025 2025 2024 2023 2022 2021 RETURN ON EQUITY: Beginning of period shareholders' equity $ 15,375 $ 13,875 $ 13,202 $ 8,441 $ 10,139 $ 9,726 Net unrealized depreciation (appreciation) of fixed maturity, available for sale securities 87 849 723 1,709 (239) (724) Adjusted beginning of period shareholders' equity $ 15,462 $ 14,724 $ 13,925 $ 10,149 $ 9,900 $ 9,002 End of period shareholders' equity $ 15,461 $ 15,461 $ 13,875 $ 13,202 $ 8,441 $ 10,139 Net unrealized depreciation (appreciation) of fixed maturity, available for sale securities (5) (5) 849 723 1,709 (239) Adjusted end of period shareholders' equity $ 15,455 $ 15,455 $ 14,724 $ 13,925 $ 10,149 $ 9,900 Average adjusted shareholders' equity $ 15,459 $ 15,090 $ 14,325 $ 12,037 $ 10,025 $ 9,451 After-tax net operating income (loss) $ 549 $ 1,875 $ 1,289 $ 2,776 $ 1,065 $ 1,154 After-tax net gains (losses) on investments (69) (115) 12 (236) (366) 202 After-tax net foreign exchange income (expense) (34) (169) 72 (23) (102) 24 Net income (loss) $ 446 $ 1,591 $ 1,373 $ 2,517 $ 597 $ 1,379 Return on equity (annualized) After-tax net operating income (loss) 14.2% 12.4% 9.0% 23.1% 10.6% 12.2% After-tax net gains (losses) on investments (1.8)% (0.8)% 0.1% (2.0)% (3.6)% 2.1% After-tax net foreign exchange income (expense) (0.9)% (1.1)% 0.5% (0.2)% (1.0)% 0.3% Net income (loss) 11.5% 10.5% 9.6% 20.9% 6.0% 14.6% Common shares outstanding 40.7 40.7 43.0 43.4 39.2 39.3 Book value per common share outstanding 379.83 379.83 322.97 304.29 215.54 258.21 Book value per common share outstanding (excluding URA(D)) 379.70 379.70 342.74 320.95 259.18 252.12 Total Shareholder Return (TSR) 13.1% 13.1 % 9.2 % 26.5 % 5.4 % 14.7 %