Voralia: Everest’s approach remains disciplined heading into renewals

Jiten Voralia, head of North American treaty reinsurance at Everest, explains to The Insurer TV how the carrier is constantly evolving to meet clients’ needs, its views on global specialties (aviation, marine, cyber, engineering and parametric risk), and how it is deepening its global footprint.

As we approach 1.1 renewals, Voralia expects the market to remain disciplined, given the elevated risk environment across lines of business, and trading conditions around property and specialty to remain favourable.

Diving into property, he explained how in 2022, following Hurricane Ian, Everest leaned in and led the significant correction that took place in the market – and its plans to continue with that approach for 2025.

For 2025, he explained: “The market will remain disciplined because of the elevated loss environment. If we think about the amount of nat cat activity we’ve had just this year alone, we've had $61bn in insured losses year to date, and that's significantly above the long-term average.”

Voralia continued by explaining the market discipline he expects to see at renewals.

“From a trading condition perspective, we think the conditions will be positive. We’re seeing stability from a pricing, terms and conditions, and attachment point perspective, and will continue to lean into the property market and deploy capacity where we continue to see adequate returns.”

The deterioration of the US casualty market, driven by social inflation and litigation finance, was a key talking point at this year's Monte Carlo Rendez-Vous. However, Voralia emphasised that this deterioration is largely confined to the US, and Everest is open to expanding in attractive casualty programs in other geographies with select top underwriters that bring strong track records.

"In respect to non-US casualty, it's important to differentiate. Clearly, this area is not subject to the same challenges we're seeing in US casualty, so we feel more optimistic here," said Voralia. "I think [non-US casualty] is going to offer growth opportunities for us to expand with our core clients when we see appropriate returns generated.”

This strategy comes as Everest, like many reinsurers, has reduced exposure to US casualty and professional lines due to the market's challenges, and as part of their cycle management strategy. Voralia highlighted that this retreat has already benefited the company, improving its underlying margins in 2024.

“To give you some perspective on the portfolio, in 2024 we pulled back on our exposures in US casualty. We did so very selectively, for deals that didn’t meet our underwriting thresholds, and by doing that, we improved our underlying margins," added Voralia. “At the same time, we’ve leaned into new opportunities in global specialties, where we see considerable demand for new solutions opening new paths to grow with our clients.”

Reinsurers spent much of this year’s Rendez-Vous identifying the areas they see as most at risk due to elevated loss trends. For Voralia, these areas include general liability (GL) umbrellas, professional liability and management liability lines.

However, Voralia expressed confidence in Everest’s disciplined approach to casualty and professional lines and the benefits of fostering transparent, proactive conversations with clients, where insurers share data to support their underwriting decisions, set expectations properly, and meet those expectations.

"I think what's going to be key is having early and transparent conversations with our clients, particularly around portfolio performance and the underwriting actions they’re going to take," he said.

"In respect to US casualty, the data supporting renewals is critical. Insurers must provide data that substantiates those underwriting actions," added Voralia.

Looking ahead, Voralia expects this disciplined underwriting and cycle management approach will help Everest continue improving its casualty results.

"In 2025, we’re going to remain disciplined in our approach. It’s going to be key that we differentiate between our clients. From both an insurance and reinsurance perspective, we need to see improvements in our margins," Voralia said.

He notes that reinsurance is a relationship-driven business, and Everest commits to partnering differently by maintaining a consistent dialogue with clients throughout the year, evolving with them to grow over the long term. These partnerships demand solutions that meet specific needs, beyond mere capacity, and clear, responsive communications ensure a satisfying and enduring experience.

“We are very optimistic about the opportunity ahead. Our business thrives because of our unique and agile culture, and we’ve built the strength over many years to meet our clients’ needs in this ever-changing risk environment,” he concluded.