SAN DIEGO--(BUSINESS WIRE)---- $EG #EverestGroup--Johnson Fistel, PLLP is investigating potential claims on behalf of investors of Everest Group, Ltd. (NYSE: EG). The investigation focuses on Everest's executive officers and whether investor losses may be recovered under federal securities laws. What if I purchased Everest Group securities? If you purchased Everest Group securities and suffered losses on your investment, join our investigation now: Click here to join the investigation. Or for more informati ...

Core Insights - Everest Group, Ltd. reported a fourth-quarter 2025 operating income of $13.26 per share, missing the Zacks Consensus Estimate by 0.8%, but showing a recovery from a loss of $18.39 in the previous year [1][7] - The company benefited from a strong Reinsurance segment and solid core fixed-income investment returns, although these positives were partially offset by weak performance in insurance businesses, higher expenses, and underwriting losses [1] Financial Performance - Total operating revenues for Q4 2025 were nearly $4.4 billion, a decline of 4.6% year over year, but exceeded the Zacks Consensus Estimate by 2.7% [4] - Gross written premiums fell 8.6% year over year to $4.3 billion, with strong growth in specialty lines offset by targeted reductions in casualty lines [4][7] - Net investment income rose 18.8% year over year to $562 million, significantly surpassing both the estimate of $330.6 million and the Zacks Consensus Estimate of $456.4 million [5][10] - Total claims and expenses decreased by 28.1% to $3.9 billion, primarily due to lower incurred losses and loss adjustment expenses [5] Segment Analysis - The Reinsurance segment generated gross written premiums of $3.2 billion, down 3.6% year over year, reflecting lower volumes in certain lines [8] - The Insurance segment posted gross written premiums of $1.1 billion, down 19.7% year over year, with declines in several lines offsetting higher premiums in Accident and Health [9] Capital and Equity - Everest Group ended Q4 2025 with total investments and cash of $45.4 billion, up 9.4% from the end of 2024 [10] - Shareholders' equity rose 11.4% year over year to $15.5 billion, and book value per share increased 10.8% to $379.7 [10] Full-Year Highlights - For the full year 2025, operating income per share surged 49.3% year over year to $44.54, beating estimates by 2.9% [12] - Total revenues rose 1.24% year over year to $17.5 billion, roughly in line with the Zacks Consensus Estimate [12] - Gross written premiums fell 2.9% year over year to $17.7 billion, lower than the estimate of $18.2 billion [12]

Financial Data and Key Metrics Changes - Gross written premiums for Q4 2025 were $4.3 billion, an 8.6% decrease in constant dollars, primarily due to the exit from the commercial retail business and targeted reductions in U.S. casualty lines [13][4] - Net investment income increased to $562 million, significantly up from the prior year, driven by growth in the fixed income portfolio and strong performance from limited partnerships [21][4] - The combined ratio for the quarter was 98.4%, including $216 million of catastrophe losses and $122 million of adverse development cover premium [14][4] - Operating return on equity (ROE) was 14.2%, with a total shareholder return (TSR) of 13.1% for the year [12][3] Business Line Data and Key Metrics Changes - The reinsurance business generated $255 million of underwriting income, with a combined ratio of 91.2%, reflecting strong underwriting discipline [5][16] - Gross written premiums in the reinsurance segment decreased by 3.6% in constant dollars, while property cat excess of loss (XOL) grew by 10.1% when excluding reinstatement premiums [16][17] - The insurance segment saw gross premiums written decrease by 20.1% in constant dollars to $1.1 billion, with growth in accident and health offset by lower retention in the commercial retail business [17][18] Market Data and Key Metrics Changes - Property catastrophe rates decreased by an average of 10% globally during the January 1 renewals, while the company managed to limit its premium decline to just under 1% [5][30] - The attritional loss ratio improved to 68.6% in the insurance segment, reflecting disciplined underwriting despite elevated risks in the U.S. casualty lines [19][18] Company Strategy and Development Direction - The company has focused on simplifying operations, reducing reserve risk, and strengthening its balance sheet, positioning itself for improved performance and consistent returns [3][4] - The divestiture of the commercial retail business is expected to create short-term pressure on the expense ratio, but the company anticipates a return to historical levels in the coming quarters [8][15] - The Global Wholesale and Specialty platform is expected to become a more significant part of the earnings mix, with a focus on expertise-driven underwriting and strong distribution relationships [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning despite a challenging market, noting that the stock price does not reflect the firm's value [11][12] - The company expects to continue share repurchases as a primary use of excess capital, with plans to maintain a quarterly floor for buybacks [23][40] - Management highlighted the importance of maintaining underwriting profitability over growth in size, emphasizing a focus on bottom-line results [54][56] Other Important Information - The company completed all reserve studies for the year, indicating a robust position in the reinsurance division driven by short-tail and specialty lines [10][20] - The company anticipates approximately $150 million in restructuring charges throughout 2026 related to the exit from the commercial retail insurance business [15][16] Q&A Session Summary Question: What is the expected expense ratio for the Global Wholesale and Specialty business? - The company expects the expense ratio to be elevated at 6%-7% for the year, potentially decreasing to the lower end of 6% by 2027, with a target of 12%-13% for the Global Wholesale and Specialty segment [27][28] Question: How does the company view reinsurance pricing trends? - Management anticipates continued pressure on reinsurance pricing, with property cat rates expected to decline further, but remains confident in achieving rate adequacy where they choose to participate [30][31] Question: What is the company's approach to capital deployment and buybacks? - The company views share repurchases as an attractive use of excess capital, especially given the current stock price discount to book value, and plans to continue buybacks throughout 2026 [39][40] Question: Is the company considering M&A opportunities? - While the company has the capacity for M&A, any potential transactions would need to compete with the high return on capital from share repurchases, and would likely be small and aligned with existing strategic goals [71][72]

Financial Data and Key Metrics Changes - Gross written premiums for Q4 2025 were $4.3 billion, an 8.6% decrease in constant dollars, primarily due to the exit from the commercial retail business and targeted reductions in U.S. casualty lines [16][5] - Net investment income increased to $562 million, significantly up from the prior year, driven by growth in the fixed income portfolio and strong performance from limited partnerships [24][5] - The combined ratio for the quarter was 98.4%, including $216 million of catastrophe losses and $122 million of adverse development cover premium [6][16] - Operating return on equity (ROE) was 14.2%, with a total shareholder return (TSR) of 13.1% for the year [15][4] Business Line Data and Key Metrics Changes - The reinsurance business generated $255 million of underwriting income, with gross written premiums decreasing by 3.6% in constant dollars [19][7] - The insurance segment saw gross written premiums decrease by 20.1% in constant dollars to $1.1 billion, with growth in accident and health and other specialty lines offset by lower retention in the commercial retail business [21][10] - The attritional combined ratio improved to 89.9%, reflecting strong underlying performance despite challenges in the casualty lines [17][6] Market Data and Key Metrics Changes - Property catastrophe rates decreased by an average of 10% globally during the January 1 renewals, while the company managed to bind over $6.3 billion of premium, down just under 1% from expiring [7][8] - The company retained over 95% of enforced premium with top-tier accounts while selectively reducing exposure to less profitable deals [8][9] - The global specialty book is now approximately $2 billion in premium, with an attritional loss ratio in the mid-80s [8][11] Company Strategy and Development Direction - The company focused on simplifying operations, reducing reserve risk, and strengthening the balance sheet, positioning itself for improved performance and consistent returns [4][15] - The divestiture of the commercial retail business is expected to create short-term pressure on the group expense ratio, but this is anticipated to subside in the coming quarters [10][9] - The Global Wholesale and Specialty platform is positioned to generate reasonable underwriting profits, with a focus on expertise-driven underwriting discipline and strong distribution relationships [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning despite a challenging market, noting that the stock price does not reflect the firm's value [14][15] - The company expects to continue share repurchases as a use of excess capital, with $400 million repurchased in Q4 and an additional $100 million in January 2026 [25][26] - Management anticipates a lower growth environment in 2026, which will reduce pressure to support significant growth [42][43] Other Important Information - The company completed all reserve studies for the year, with a robust position in reinsurance driven by short-tail and specialty lines [13][23] - The attritional loss ratio improved to 68.6% in the insurance segment, while the underwriting-related expense ratio increased due to lower casualty net earned premium growth [22][21] - The company expects approximately $150 million in restructuring charges throughout 2026 related to the exit from the commercial retail insurance business [18][19] Q&A Session Summary Question: What is the expected expense ratio for the Global Wholesale and Specialty business? - The company expects the expense ratio to be in the 6%-7% range for the year, potentially settling at the lower end of 6% by 2027 [30][31] Question: How does the company view reinsurance pricing trends? - Management anticipates rates on property CAT to decline in the 10%-15% range, with a focus on maintaining adequate returns on capital [34][35] Question: What is the company's approach to capital deployment and buybacks? - The capital position is strong, and management plans to continue share buybacks as a primary use of excess capital, especially given the current valuation [42][43] Question: Is the company considering M&A opportunities? - While the company has the capacity for M&A, any potential transactions would need to compete with the value of share repurchases and would likely be small and strategic [77][78] Question: How does the company view its future in the insurance segment? - Management emphasizes that profitability, rather than size, will be the measure of success in the insurance segment, with a focus on underwriting profits [59][60]

Financial Data and Key Metrics Changes - For Q4 2025, gross written premiums were $4.3 billion, an 8.6% decrease in constant dollars, primarily due to the exit from the commercial retail business and targeted reductions in U.S. casualty lines [15][4] - Net investment income increased to $562 million, significantly up from the prior year, driven by growth in the fixed income portfolio and strong performance from limited partnerships [22][4] - The combined ratio for the quarter was 98.4%, including $216 million of catastrophe losses and $122 million of adverse development cover premium [15][4] - The attritional combined ratio improved to 89.9%, reflecting the underlying strength of the book and focus on margin development [16][4] Business Line Data and Key Metrics Changes - The reinsurance business generated $255 million of underwriting income, with a disciplined approach leading to strong performance [5][4] - Gross written premiums in reinsurance decreased by 3.6% in constant dollars, while property cat XOL grew by 10.1% when excluding reinstatement premiums [18][4] - In the insurance segment, gross premiums written decreased by 20.1% in constant dollars to $1.1 billion, with growth in accident and health offset by lower retention in the commercial retail business [19][4] Market Data and Key Metrics Changes - Market conditions softened in the January 1 renewals, with property cat rates down an average of 10% globally, while remaining above required technical prices [5][4] - The company retained over 95% of enforced premium with top-tier accounts, while selectively reducing exposure to less profitable deals [6][4] - Attractive opportunities were noted in Asia, particularly in the new India branch and targeted specialty lines [7][4] Company Strategy and Development Direction - The company simplified operations, reduced reserve risk, reshaped the portfolio, and strengthened the balance sheet in 2025, positioning itself for improved performance [3][4] - The divestiture of the commercial retail business is expected to create short-term pressure on the group expense ratio, but this is anticipated to subside in future quarters [9][4] - The focus will be on driving underwriting income growth rather than merely increasing top-line revenue, with a broad appetite for various risks while maintaining depth in expertise [59][4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning despite challenges in the operating environment, including social inflation and legal system abuses [11][4] - The stock price does not reflect the company's value, leading to prioritization of share repurchases as a use of excess capital [12][4] - The company expects to generate significant levels of net income in 2026, supporting ongoing buybacks and capital management strategies [41][4] Other Important Information - The company completed all reserve studies for the year, with robust positions in reinsurance driven by short-tail and specialty lines [21][4] - The attritional loss ratio improved to 68.6% in the insurance segment, with a disciplined approach to setting loss picks in U.S. casualty lines [20][4] - The company plans to report three segments beginning in 2026: treaty reinsurance, global wholesale and specialty insurance, and the other segment encompassing the exited commercial retail business [21][4] Q&A Session Summary Question: What is the expected expense ratio for the Global Wholesale and Specialty business? - Management expects the expense ratio to be on the lower end of 6% as they enter 2027, with significant improvements anticipated over time [29][30] Question: How does the company view reinsurance pricing and market share? - Management anticipates rates to remain under pressure, with a focus on maintaining adequate returns rather than pursuing market share aggressively [32][40] Question: What is the company's capital position and approach to buybacks? - The capital position is strong, with expectations for significant excess capital to support ongoing buybacks, particularly given the current discounted share price [41][42] Question: Is the company considering M&A opportunities? - While M&A is an option, any potential transactions would need to compete with the high return on capital from share repurchases, and would likely be small and strategic [76][77]

Investor Presentation Fourth Quarter 2025 Cautionary Note On Forward-Looking Statements and Non-GAAP Measures 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 b ...

Financial Performance - Everest Group reported $4.42 billion in revenue for the quarter ended December 2025, reflecting a year-over-year decline of 4.6% [1] - The EPS for the same period was $13.26, a significant improvement from -$18.39 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $4.31 billion, resulting in a surprise of +2.69% [1] - The company experienced an EPS surprise of -0.75%, with the consensus EPS estimate being $13.36 [1] Key Metrics - The total loss ratio for reinsurance was 63.6%, slightly above the average estimate of 61% from three analysts [4] - The combined ratio for reinsurance was reported at 91.2%, compared to the average estimate of 88.9% [4] - The total loss ratio for insurance was 81.5%, significantly higher than the estimated 71.9% [4] - The combined ratio for insurance was 117%, compared to the average estimate of 102.1% [4] - Net investment income was $562 million, surpassing the average estimate of $456.36 million, marking an 18.8% increase year-over-year [4] - Premiums earned were $3.86 billion, slightly below the average estimate of $3.95 billion, representing a -1.6% change year-over-year [4] - Net premiums earned in insurance were $946 million, exceeding the average estimate of $938.22 million, reflecting a +5.1% change year-over-year [4] - Net premiums earned in reinsurance were $2.9 billion, below the average estimate of $2.98 billion, indicating a -2.9% change year-over-year [4] Stock Performance - Shares of Everest Group have returned -0.8% over the past month, while the Zacks S&P 500 composite increased by +0.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

分组1 - Everest Group reported quarterly earnings of $13.26 per share, missing the Zacks Consensus Estimate of $13.36 per share, compared to a loss of $18.39 per share a year ago, representing an earnings surprise of -0.75% [1] - The company posted revenues of $4.42 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.69%, but down from year-ago revenues of $4.64 billion [2] - Over the last four quarters, Everest Group has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] 分组2 - The current consensus EPS estimate for the coming quarter is $14.45 on revenues of $4.48 billion, and for the current fiscal year, it is $54.80 on revenues of $16.99 billion [7] - The Zacks Industry Rank for Insurance - Multi line is currently in the bottom 38% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - The estimate revisions trend for Everest Group was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]

Financial Performance - Annual net income of $1.6 billion and net operating income of $1.9 billion for 2025, with a net income return on equity (ROE) of 10.5% and net operating income ROE of 12.4%[1] - In Q4 2025, net income was $446 million, equating to $10.77 per diluted share, compared to a net loss of $593 million in Q4 2024[8] - The company reported a net income of $446 million for Q4 2025, a significant recovery from a net loss of $593 million in Q4 2024[50] - Net income for 2025 increased to $1,591 million, up from $1,373 million in 2024, representing a growth of 15.9%[53] - Comprehensive income for the year ended December 31, 2025, was $2,678 million, a significant increase from $1,169 million in 2024[50] Premiums and Underwriting - Total gross written premium for 2025 was $17.7 billion, reflecting a year-over-year decrease of 3.1% for the Group, 1.2% for Reinsurance, and 5.7% for Insurance on a comparable basis[4] - The Reinsurance segment reported gross written premium of $3.157 billion in Q4 2025, a decrease of 4.1% year-over-year[16] - Gross written premiums decreased by 3.6% year-over-year to approximately $3.2 billion, with notable growth in Property Catastrophe XOL (10.1%) and Financial Lines (10.2%) offset by declines in Casualty Pro-Rata (12.4%) and Casualty XOL (7.2%) [19] - For Q4 2025, gross written premiums in the insurance segment were $1.1 billion, reflecting a 20.1% decrease year-over-year, with significant declines in Property/Short Tail (29.5%) and Specialty Casualty (24.9%) [23] - Year-to-date gross written premium for the Group was $17,706 million in 2025, down 2.9% from $18,232 million in 2024[41] Ratios and Performance Metrics - Combined ratio for the Group was 98.6%, with 91.7% for Reinsurance and 114.6% for Insurance, indicating a focus on improving underwriting performance[4] - The attritional combined ratio for the Group improved to 89.9% in Q4 2025, down from 93.4% in Q4 2024, indicating enhanced underwriting discipline[13] - The combined ratio for the insurance segment was 117.0%, a decrease of 122.2 points year-over-year, while the attritional combined ratio was 104.1% [21] - The combined ratio for the Group was 98.4% for Q4 2025, down from 135.5% in Q4 2024, reflecting better underwriting performance[38] - The attritional combined ratio excluding profit commission for the Group was 89.4% for the year ended December 31, 2025, compared to 87.6% in 2024[39] Investment and Cash Flow - Net investment income increased by $170 million to a record $2.1 billion, contributing to strong financial results[4] - Net investment income increased to $562 million in Q4 2025 from $473 million in Q4 2024, representing a growth of 18.8%[50] - Operating cash flow for the year was $3.1 billion, which included the consideration paid for the adverse development cover[4] - Net cash provided by operating activities decreased to $3,068 million from $4,957 million, a decline of 38.1%[53] - The company experienced total net losses on investments of $143 million for the year 2025, compared to a gain of $19 million in 2024[50] Shareholder Returns and Equity - The company repurchased $797 million of common shares in 2025, reflecting a commitment to returning capital to shareholders[4] - Common share repurchases totaled $397 million during Q4 2025, representing 1,239,880 shares at an average price of $320.59 per share [31] - Shareholders' equity rose to $15.5 billion from $13.9 billion year-over-year, with a book value per share of $379.83 compared to $322.97 at the end of 2024 [31] - The annualized total shareholder return (TSR) is calculated based on year-to-date growth in book value per share and dividends, highlighting the company's commitment to shareholder value[48] - The company paid $335 million in dividends to shareholders, slightly up from $334 million in 2024[53] Losses and Reserves - Pre-tax net catastrophe losses were $200 million, primarily due to Hurricane Melissa and other mid-sized global events, down from $250 million in the prior-year quarter [19] - The reserve for losses and loss adjustment expenses rose to $34,312 million in 2025, compared to $29,889 million in 2024, marking an increase of 14.4%[51] - The attritional loss ratio increased by 10 basis points to 57.0%, while the attritional combined ratio improved by 140 basis points to 84.6% compared to the previous year [19] - The attritional loss ratio for the Reinsurance segment was 57.0% for Q4 2025, compared to 56.9% in Q4 2024, indicating a slight improvement[38] Other Notable Events - The company recognized a net pre-tax benefit of $127.3 million associated with the sale of its Commercial Retail Insurance Renewal Rights to AIG[8] - The company expects to recast the associated retail business into the Other segment following the sale of renewal rights for its commercial retail insurance business to AIG [26] - The company reported a non-cash limited partnership distribution of $8 million, down from $23 million in 2024[53] - The effect of exchange rate changes on cash resulted in a decrease of $28 million, contrasting with an increase of $16 million in 2024[53]

分组1 - Everest Group is expected to report quarterly earnings of $12.63 per share, reflecting a year-over-year increase of +168.7%, while revenues are projected to be $4.31 billion, down 7.1% from the previous year [3] - The consensus EPS estimate has been revised 0.18% higher in the last 30 days, indicating a slight positive adjustment by analysts [4] - The Most Accurate Estimate for Everest Group is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.65%, suggesting a bearish outlook from analysts [11] 分组2 - Historically, Everest Group has only beaten consensus EPS estimates once in the last four quarters, with a significant miss of -43.69% in the last reported quarter [12][13] - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, particularly when combined with a favorable Zacks Rank [9] - Enact Holdings, another company in the insurance industry, is expected to post earnings of $1.09 per share, with revenues projected to be $316.18 million, up 2.3% from the previous year, and an Earnings ESP of +3.23% indicating a likely earnings beat [17][18][19]