Everest Group (EG) risk factors, FY2024 10-K

Other

1. 01Our results could be adversely affected by catastrophic events
2. 02Our losses from future catastrophic events could exceed our projections
3. 03Unfavorable loss development may adversely affect our business, financial condition, results of operations or liquidity
4. 04The failure to accurately assess underwriting risk and establish adequate premium rates could reduce our net income or result in a net loss
5. 05Decreases in pricing for property and casualty reinsurance and insurance could reduce our net income
6. 06If we are unable to or choose not to purchase reinsurance and transfer risk to the reinsurance markets, our net income could be reduced or we could incur a net loss in the event of unusual loss experience
7. 07The effects of emerging claim and coverage issues on our business are uncertain
8. 08A decline in our financial strength ratings could adversely affect our standing among cedents and broker partners and our ability to grow premiums and earnings
9. 09downgrade or withdrawal of any of these ratings could adversely affect our ability to market our reinsurance and insurance products, our ability to compete with other reinsurers and insurers and our ability to write new business, which in turn could impact our profitability and results
10. 10A decline in our debt ratings could increase our borrowing costs and adversely affect our ability to access capital markets at attractive rates
11. 11In accordance with industry practice, we have uncollateralized receivables from insureds, agents and brokers and/or rely on agents and brokers to process our payments. We may not be able to collect amounts due from insureds, agents and brokers, resulting in a reduction to net income
12. 12Our investment values and investment income could decline due to changed conditions in the financial markets
13. 13The failure to maintain access to enough cash, readily salable or unencumbered financial assets to meet near-term financial obligations may adversely impact business relations and creditworthiness
14. 14We may require additional capital or financing sources in the future, which may not be available or may be available only on unfavorable terms
15. 15Because of our holding company structure, our ability to pay dividends, interest and principal is dependent on receiving dividends, loan payments and other funds from our subsidiaries
16. 16We may experience foreign currency exchange losses that reduce our net income and capital levels
17. 17Our business is sensitive to unanticipated levels of inflation
18. 18Measures taken by domestic or foreign governments could have effects on our business
19. 19In January 2025, James Williamson, Executive Vice President and Chief Operating Officer, was appointed President and CEO and member of the Board of Directors after the departure of our former President and CEO, Juan Andrade
20. 20We are subject to cybersecurity risks that could negatively impact our business operations
21. 21Analytical models used in decision making could vary materially from actual results
22. 22Our operations are subject to business continuation risk
23. 23Our industry is highly competitive, and we may not be able to compete successfully in the future
24. 24Applicable insurance laws may have an anti-takeover effect
25. 25The ownership of common shares of Group by Everest Re Advisors, Ltd., a direct subsidiary of Group, may have an impact on securing approval of shareholder proposals that Group’s management supports
26. 26Provisions in Group’s bye-laws could have an anti-takeover effect, which could diminish the value of its common shares
27. 27iii.)share ownership by any person may result in adverse tax, regulatory or legal consequences to Group, any of its subsidiaries or any other shareholder
28. 28Investors in Group may have more difficulty in protecting their interests than investors in a U.S. corporation
29. 29Committees of the Board of Directors
30. 30Transactions with Significant Shareholders
31. 31Inspection of Corporate Records
32. 32Limitation of Liability of Directors and Officers
33. 33Indemnification of Directors and Officers
34. 34Enforcement of Civil Liabilities
35. 35Insurance laws and regulations restrict our ability to operate and any failure to comply with those laws and regulations could have a material adverse effect on our business
36. 36Regulatory challenges in the United States could adversely affect the ability of Bermuda Re to conduct business
37. 37Bermuda Re may need to be licensed or admitted in additional jurisdictions to develop its business
38. 38Bermuda Re’s ability to write reinsurance may be severely limited if it is unable to arrange for security to back its reinsurance
39. 39Regulatory and legislative developments related to cybersecurity, privacy, data protection and artificial intelligence could have an adverse impact on our business
40. 40If international tax laws change, our net income may be impacted
41. 41If U.S. tax law changes, our net income may be impacted
42. 42On August 16, 2022, the IRA was enacted. We have evaluated the tax provisions of the IRA, the most significant of which are the corporate alternative minimum tax and the share repurchase excise tax and do not expect the legislation to have a material impact on our results of operations
43. 43Group and/or Bermuda Re may be subject to U.S. corporate income tax, which would reduce our net income
44. 44Group and/or Bermuda Re may become subject to Bermuda tax, which would reduce our net income