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]

Core Insights - Everest Group, Ltd. reported a net income of $255 million for Q3 2025, which translates to $6.09 per diluted share, a decrease from the net income of $509 million or $11.80 per diluted share in Q3 2024 [1] Financial Performance - The net operating income for Q3 2025 was $316 million, equating to $7.54 per diluted share, compared to the previous year's figures [1]

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]

Core Viewpoint - Everest Group, Ltd. has entered into an adverse development reinsurance agreement providing $1.2 billion in gross limit protection against future adverse reserve development, effective October 1, 2025 [1] Company Summary - Everest Group, Ltd. is a global leader in underwriting, specializing in property, casualty, and specialty reinsurance and insurance solutions [1] - The agreement is supported by Longtail Re, an affiliate of Stone Ridge Holdings Group [1]

Core Insights - The primary focus for income investors is generating consistent cash flow from liquid investments, including dividends, which are a significant component of long-term returns [1][2] Company Overview - Everest Group (EG) is headquartered in Hamilton and has experienced a price change of -3.73% this year [3] - The company currently pays a dividend of $2.00 per share, resulting in a dividend yield of 2.29%, which is higher than the Insurance - Multi line industry's yield of 1.72% and the S&P 500's yield of 1.49% [3] Dividend Performance - The current annualized dividend of Everest Group is $8.00, reflecting a 3.2% increase from the previous year [4] - Over the past 5 years, the company has increased its dividend twice on a year-over-year basis, with an average annual increase of 11.66% [4] - The current payout ratio is 40%, indicating that the company pays out 40% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, Everest Group anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $49.76 per share, representing a year-over-year earnings growth rate of 66.81% [5] Investment Considerations - Established firms with secure profits are typically viewed as the best dividend options, while high-growth businesses and tech start-ups rarely offer dividends [6] - Everest Group is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6]

Core Viewpoint - The market anticipates a year-over-year decline in Everest Group's earnings despite higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Everest Group is expected to report quarterly earnings of $13.39 per share, reflecting an 8.4% decrease year-over-year, while revenues are projected to be $4.45 billion, a 3.8% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 14.96% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows that Everest Group has an Earnings ESP of 0%, suggesting no recent differing analyst views from the consensus estimate [11]. The company holds a Zacks Rank of 2, complicating predictions of an earnings beat [11]. Historical Performance - In the last reported quarter, Everest Group exceeded the expected earnings of $15.14 per share, achieving $17.36, resulting in a surprise of +14.66% [12]. Over the past four quarters, the company has beaten consensus EPS estimates twice [13]. Market Reaction Factors - An earnings beat or miss alone may not dictate stock movement, as other factors can influence investor sentiment [14]. Betting on stocks expected to beat earnings can improve success odds, making it essential to check Earnings ESP and Zacks Rank before quarterly releases [15]. Conclusion - Everest Group does not currently appear to be a strong candidate for an earnings beat, but investors should consider additional factors when making investment decisions ahead of the earnings release [16].

Core Insights - Everest Group, Ltd. (EG) is valued at a market cap of $15.1 billion and operates as a leading global reinsurance and insurance provider, offering a wide range of products across various regions [1] Financial Performance - EG is expected to announce its fiscal Q3 2025 earnings results on October 29, with analysts predicting an adjusted earnings of $9.13 per share, a decrease of nearly 37.6% from $14.62 per share in the same quarter last year [2] - For fiscal 2025, analysts forecast an adjusted EPS of $45.52, representing a 52.6% increase from $29.83 in fiscal 2024 [3] Stock Performance - Over the past 52 weeks, EG stock has declined nearly 9.6%, underperforming the S&P 500 Index, which rose by 16.3%, and the Financial Select Sector SPDR Fund, which increased by 16.5% [4] - On October 9, EG shares fell by 2.3% after Wells Fargo analyst Elyse Greenspan reaffirmed a "Hold" rating with a price target of $383 [5] - The consensus among analysts is cautiously optimistic, with a "Moderate Buy" rating; among 18 analysts, five recommend "Strong Buy," two "Moderate Buy," nine suggest "Hold," and two have a "Strong Sell" rating [5] - The average analyst price target of $382.88 indicates a premium of 8.8% from current market prices [5]