Everest (US:EG)2025-10-31 20:21Premiums and Revenues - Gross written premiums decreased by 1.1% to $4.375 billion for the three months ended September 30, 2025, compared to $4.425 billion for the same period in 2024[145]. - Net written premiums decreased by 1.3% to $3.754 billion for the three months ended September 30, 2025, compared to $3.805 billion for the same period in 2024[149]. - Premiums earned decreased by 1.6% to $3.855 billion during the three months ended September 30, 2025, compared to $3.918 billion during the same period in 2024[150]. - Total revenues increased by 0.8% to $4.319 billion for the three months ended September 30, 2025, compared to $4.285 billion for the same period in 2024[145]. Losses and Expenses - Incurred losses and loss adjustment expenses increased by 9.8% to $2.837 billion for the three months ended September 30, 2025, compared to $2.584 billion for the same period in 2024[145]. - The combined ratio increased to 103.4% for the three months ended September 30, 2025, compared to 93.1% for the same period in 2024[145]. - The loss ratio component increased by 7.6 points to 73.6% for the three months ended September 30, 2025, mainly due to a $537 million increase in unfavorable development on prior year attritional losses[171]. - Incurred losses and LAE increased by 64.7% to $996 million for the three months ended September 30, 2025, compared to $605 million for the same period in 2024[201]. Investment Income - Net investment income increased by 8.8% to $540 million for the three months ended September 30, 2025, compared to $496 million for the same period in 2024[145]. - For the nine months ended September 30, 2025, net investment income increased by 5.5% to $1.6 billion, up from $1.5 billion in the same period in 2024, mainly from a $73 million increase in income from fixed maturity investments[176]. - Total net gains (losses) on investments for the three months ended September 30, 2025, were $(47) million, compared to $(27) million for the same period in 2024, reflecting a $36 million loss from investment dispositions[178]. Shareholders' Equity - Shareholders' equity increased by 10.8% to $15.375 billion as of September 30, 2025, compared to $13.875 billion as of December 31, 2024[146]. - Shareholders' equity increased to $15.4 billion as of September 30, 2025, up from $13.9 billion at December 31, 2024[225]. Catastrophe Losses - Current year catastrophe losses for the three months ended September 30, 2025 were $50 million, primarily related to Typhoon Ragasa, the 2025 U.S. September floods, and the 2025 Philippines earthquake[157]. - Current year catastrophe losses for the nine months ended September 30, 2025 were $604 million, with significant losses attributed to the 2025 Southern California wildfires and other events[160]. Reinsurance Segment - Gross written premiums in the Reinsurance segment decreased by 1.8% to $3.2 billion for the three months ended September 30, 2025, compared to $3.3 billion in the same period in 2024[186]. - The loss ratio for the Reinsurance segment improved to 58.0% for the three months ended September 30, 2025, down from 65.4% in the same period in 2024[186]. - The combined ratio for the Reinsurance segment was 87.0% for the nine months ended September 30, 2025, compared to 91.9% for the same period in 2024[188]. Corporate Expenses - Corporate expenses increased to $27 million for the three months ended September 30, 2025, compared to $25 million for the same period in 2024, primarily due to a nonrecurring adjustment related to the employee benefit plan[164]. - Commission, brokerage, taxes and fees increased by 7.8% to $890 million for the three months ended September 30, 2025, compared to $826 million for the same period in 2024[162]. Cash Flow and Borrowings - The net cash flows from operating activities for the nine months ended September 30, 2025, were $3.5 billion, compared to $4.2 billion for the same period in 2024[231]. - The company had $1.0 billion of borrowings outstanding as of September 30, 2025, with borrowings beginning to expire in 2025[236]. Foreign Currency and Interest Rates - The company mitigates foreign currency risk by matching the currency and duration of assets to corresponding operating liabilities[245]. - Changes in foreign currency exchange rates impact the fair value of available-for-sale fixed maturities, reflected in other comprehensive income[245]. - If interest rates rise, the present value of reserves decreases, while it increases if interest rates decline[244].