Everest (US:EG)2026-02-04 21:19Financial 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]