Everest (US:EG)2025-10-27 20:20Financial 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]