EG · Everest Re Group, Ltd.

The following is a discussion of our results of operations, financial condition and liquidity and capital resources for the three months ended March 31, 2026. Net income increased significantly to $653.0 million from $210.0 million in the prior-year quarter. This improvement was primarily due to lower current year catastrophe losses, favorable development on prior year catastrophe losses partially offset by unfavorable development on Russia/Ukraine losses, and a decrease in other underwriting expenses. The current year decrease in other underwriting expenses reflects broader operational discipline across the organization. Revenue decreased to $4.1 billion from $4.3 billion in Q1 2025, a decline of 4.6%. This reflects continued portfolio recalibration, including the impact of the Renewal Right Sale, which also drove recognition of transition services income that reduced operating expenses. Commission and brokerage expenses increased, primarily due to mix of business — a factor management explicitly identifies as influencing cost structure. Operating expenses also rose due to professional fees associated with certain corporate initiatives, representing deliberate investment in strategic portfolio simplification. Net cash provided by operating activities totaled $649.0 million, compared to $928.0 million in Q1 2025. The decline reflects timing-driven accruals, including increases in loss reserves and reductions in reinsurance recoverables — items that affect cash flow timing but not underlying underwriting performance. We believe that our fixed maturity securities, in conjunction with short-term investments and positive cash flow from operations, provide ample sources of liquidity for the expected payment of losses and LAE in the near future. Our current investment strategy seeks to maximize after-tax income through a high quality, diversified, fixed maturity portfolio, while maintaining an adequate level of liquidity. We also monitor and project the regulatory capital at our operating subsidiaries, and each of our non-U.S./Bermuda operations maintains capital in the currency of the country of its geographic location consistent with local regulatory guidelines. The One Big Beautiful Bill did not have a material impact on our results of operations, financial condition, or cash flows upon enactment in 2025, and we do not expect it to have a material impact in the future; however, we will continue to evaluate its impact.