Financial Data and Key Metrics Changes - The group gross written premium was $4.4 billion, down 1% from last year, reflecting targeted re-underwriting in insurance and careful portfolio mix management in reinsurance [5][13] - The combined ratio for the quarter was 103.4%, with an attritional combined ratio of 89.6%, demonstrating the strength of the underlying book [5][13] - Operating income was $316 million compared to $630 million last year, primarily due to reserve adjustments [5][13] - Net investment income increased to $540 million for the quarter, driven by higher assets under management and strong alternative asset returns [18][19] Business Line Data and Key Metrics Changes - The reinsurance business reported gross written premium of $3.2 billion, down 2% year over year, with a combined ratio of 87%, improving year over year due to lower CAT losses and favorable prior year development [5][15] - The global specialties business produced almost $500 million of gross written premium and over $100 million of underwriting income in the quarter [6][7] - In the insurance segment, gross premiums written increased 2.7% in constant dollars to $1.1 billion, with strong growth in specialty and accident and health lines offset by actions in U.S. casualty lines [16][17] Market Data and Key Metrics Changes - Market conditions in the reinsurance business, particularly in CAT-exposed lines, are expected to remain favorable through the January 1, 2026 renewal [7] - The company is a preferred partner in the reinsurance market, with no barriers to continued attractive capital deployment [7] Company Strategy and Development Direction - The company is exiting global retail insurance to focus on core reinsurance and specialty insurance businesses, which are expected to yield improved returns on capital [3][11] - A comprehensive adverse development cover has been established for the North America insurance division, covering reserves for accident years 2024 and prior, to ensure past underwriting decisions do not overshadow current performance [4][12] - The company aims to operate in businesses with clear competitive advantages and strong economics, applying a standard for capital deployment [4][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects of core reinsurance and wholesale specialty operations, emphasizing a disciplined approach to capital allocation and risk management [4][9] - The management team is focused on creating a more agile and profitable company, with a strong balance sheet and significant excess capital to deploy [9][10] Other Important Information - The company expects to take a pre-tax non-operating charge in the range of $250 million to $350 million associated with the transaction of selling renewal rights to AIG, recognized over 2025 and 2026 [11][12] - Share repurchases are viewed as an attractive opportunity, with plans to resume meaningful buybacks going forward [20] Q&A Session Summary Question: What is the CAT load for the specialty business? - Management indicated that the CAT load is quite modest and very low relative to the overall insurance division burden [26][27] Question: What does the $2 billion of insurance gross written premiums mean in terms of capital liberation? - Management expects substantial capital release over time, with the renewal process taking place over the next 12 months [28][34] Question: What is the plan for returning capital to shareholders? - Management views capital repatriation and share buybacks attractively, especially given the stock's trading below book value [37] Question: How confident is management about the casualty reserves in the reinsurance business? - Management expressed confidence that the casualty reserves in the reinsurance business will hold up, noting the distinction between the performance of the insurance and reinsurance portfolios [48][50] Question: What are the pricing conditions for property reinsurance going forward? - Management characterized the environment as still favorable, despite potential pricing pressure, and emphasized a disciplined approach to underwriting [54][56]

Financial Performance - The company's net operating income for the third quarter of 2025 was $316 million[77], and the year-to-date net operating income reached $1326 million[77] - The annualized Total Shareholder Return (TSR) for the third quarter of 2025 was 123%[35, 72] - Net investment income for the third quarter of 2025 was $540 million[33, 69], driven by higher assets under management and strong alternative investment returns[33, 69] Gross Written Premium (GWP) - The group's gross written premiums for the third quarter of 2025 were $4375 million[71, 80] - Reinsurance GWP decreased by 17% on a comparable basis to approximately $3203 million[41, 80] - Insurance GWP increased by 27% on a comparable basis to $1147 million[44, 80] Reserve Development - The company strengthened US casualty reserves, primarily in accident years 2022 to 2024[10] - The reinsurance segment experienced net favorable prior year development of $29 million[10, 41] - The insurance segment experienced adverse development of $361 million[10] - The "Other" segment experienced unfavorable development of $146 million, primarily driven by the sports and leisure business[9, 10] Strategic Actions - Everest purchased a $12 billion gross ($10 billion net) Adverse Development Cover (ADC) from Longtail Re[13] - Everest announced a renewal rights transaction for its Retail Commercial Insurance business, which represents approximately $2 billion of in-force gross premiums written as of October 25, 2025[17]

Core Insights - Everest Group reported revenue of $4.32 billion for the quarter ended September 2025, reflecting a year-over-year increase of 0.8% [1] - The company's EPS was $7.54, significantly down from $14.62 in the same quarter last year, indicating a decline in profitability [1] - The reported revenue fell short of the Zacks Consensus Estimate of $4.45 billion, resulting in a surprise of -2.93% [1] - The EPS also missed the consensus estimate of $13.39, leading to an EPS surprise of -43.69% [1] Financial Metrics - The total loss ratio for reinsurance was reported at 58%, better than the estimated 63.9% [4] - The combined ratio for reinsurance was 87%, outperforming the average estimate of 90.4% [4] - The total loss ratio for insurance was 106.1%, significantly worse than the estimated 72.4% [4] - The combined ratio for insurance was 138.1%, compared to the average estimate of 102.2% [4] - Net investment income was $540 million, exceeding the average estimate of $511.19 million, representing an 8.9% year-over-year increase [4] - Premiums earned were reported at $3.89 billion, slightly below the average estimate of $3.96 billion, reflecting a -0.8% year-over-year change [4] - Net premiums earned in insurance were $939 million, surpassing the average estimate of $912.46 million, but showing a -1% change year-over-year [4] - Net premiums earned in reinsurance were $2.89 billion, below the estimated $3.02 billion, indicating a -2.6% change compared to the previous year [4] Stock Performance - Shares of Everest Group have returned -0.1% over the past month, while the Zacks S&P 500 composite increased by 2.5% [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]

Core Insights - Everest Group reported quarterly earnings of $7.54 per share, missing the Zacks Consensus Estimate of $13.39 per share, and down from $14.62 per share a year ago, representing an earnings surprise of -43.69% [1] - The company posted revenues of $4.32 billion for the quarter ended September 2025, missing the Zacks Consensus Estimate by 2.93%, but slightly up from $4.29 billion year-over-year [2] - The stock has underperformed the market, losing about 3.7% since the beginning of the year compared to the S&P 500's gain of 15.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $12.40 on revenues of $4.48 billion, and for the current fiscal year, it is $49.76 on revenues of $17.67 billion [7] - The estimate revisions trend for Everest Group was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Insurance - Multi line industry, to which Everest Group belongs, is currently in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Net income for Q3 2025 was $255 million, or $6.09 per diluted share, compared to $509 million, or $11.80 per diluted share in Q3 2024, representing a decrease of 50%[4] - Net income for the nine months ended September 30, 2025, was $1,145 million, down 41.8% from $1,966 million in the same period of 2024[49] - Total revenues for Q3 2025 were $4,319 million, a slight increase from $4,285 million in Q3 2024, representing a year-over-year growth of 0.8%[47] - Comprehensive income for the nine months ended September 30, 2025, was $2,129 million, down from $2,556 million in the same period of 2024, reflecting a decrease of 16.7%[47] Underwriting and Loss Ratios - The combined ratio for the Group was 103.4%, with Reinsurance at 87.0% and Insurance at 138.1%, reflecting the strengthening of U.S. casualty reserves[4] - The total loss ratio for Q3 2025 was 106.1%, an increase of 38.7 percentage points compared to the prior year, driven by elevated loss experience[21] - The combined ratio for Q3 2025 was 138.1%, reflecting a significant increase of 41.2 percentage points year-on-year[21] - The attritional combined ratio for the Group was 88.8%, excluding the impact of profit commissions associated with favorable loss development on the mortgage business[4] - The attritional combined ratio for the group in Q3 2025 was 86.4%, compared to 85.8% in Q3 2024[36] Premiums and Reserves - Total gross written premium was $4.4 billion, a year-over-year decrease of 1.2%, with Reinsurance down 1.7% and Insurance up 2.7% on a comparable basis[4] - Gross written premiums increased by 3.4% year-on-year to $1,147 million in Q3 2025, while net written premiums rose by 7.5% to $848 million[21] - The company strengthened prior year U.S. casualty reserves by $361 million, primarily for accident years 2022 to 2024[22] - The reserve for losses and loss adjustment expenses rose to $33,742 million as of September 30, 2025, compared to $29,889 million at the end of 2024, indicating an increase of 13.1%[48] Investment and Cash Flow - Net investment income increased to $540 million from $496 million in the prior year quarter, driven by a larger asset base and strong alternative investment returns[4] - Operating cash flow for the quarter was $1.5 billion, compared to $1.7 billion in Q3 2024[4] - Total invested assets and cash increased to $45.8 billion as of September 30, 2025, compared to $41.5 billion at the end of 2024[29] - Cash at the end of Q3 2025 was $1,539 million, a slight decrease from $1,549 million at the end of Q2 2025[49] Shareholder Information - Shareholders' equity rose to $15.4 billion from $13.9 billion at the end of 2024, with a book value per share of $366.22, up from $322.97[29] - The company declared and paid common share dividends of $2.00 per share, totaling $83.7 million during the quarter[29] - Book value per common share outstanding excluding URA(D) was $27.06 for the nine months ended September 30, 2025, compared to $45.40 for the same period in 2024[47] Forward-Looking Statements and Risks - Forward-looking statements indicate potential risks including economic conditions, adequacy of reserves, and competition in the insurance industry[26] Other Notable Developments - Everest entered into an adverse development cover providing $1.2 billion of gross limit, which includes a co-participation of $100 million in each layer[9] - The renewal rights transaction of the retail commercial insurance business is expected to release significant capital over time, with a pre-tax non-operating charge estimated between $250 million to $350 million recognized over 2025 and 2026[9] - The total incurred losses and loss adjustment expenses for Q3 2025 were $2,837 million, compared to $2,584 million in Q3 2024[43] - The company reported net gains on investments of $59 million for the nine months ended September 30, 2025, compared to $50 million in the same period of 2024[49]

Core Viewpoint - American International Group, Inc. (AIG) has entered into definitive agreements to acquire renewal rights for a majority of Everest Group Ltd.'s retail insurance portfolios worldwide, which represent approximately $2 billion in premium [1] Group 1: Acquisition Details - The acquisition involves renewal rights for a significant portion of Everest's retail insurance portfolios globally [1] - AIG will not assume any liabilities associated with the policies, which will remain with Everest [1] - Everest will continue to manage claims related to its policies post-acquisition [1]

HAMILTON, Bermuda--(BUSINESS WIRE)--Everest Group, Ltd. (NYSE: EG), a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions, today reported its third quarter 2025 results. Third Quarter 2025 Highlights Net income of $255 million, equal to $6.09 per diluted share versus third quarter 2024 net income of $509 million, equal to $11.80 per diluted share Net operating income of $316 million, equal to $7.54 per diluted share versus thi. ...

Group 1 - Everest Group, Ltd. has entered into definitive agreements to sell the renewal rights for its Global Retail Commercial Insurance business to American International Group, Inc. [1] - This transaction allows Everest to sharpen its focus on its core global Reinsurance business as well as its Global Wholesale and Specialty Insurance businesses [1]

HAMILTON, Bermuda--(BUSINESS WIRE)--Everest Group, Ltd. (NYSE: EG) ("Everest†), a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions, today announced it has entered into an adverse development reinsurance agreement, effective October 1, 2025, supported by Longtail Re, an affiliate of Stone Ridge Holdings Group ("Stone Ridge†). The agreement provides $1.2 billion of gross limit protection against future adverse reserve develop. ...

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that mea ...