Compared to Estimates, Everest Group (EG) Q2 Earnings: A Look at Key Metrics

Core Insights - Everest Group reported revenue of $4.23 billion for the quarter ended June 2024, marking a year-over-year increase of 15.9% [1] - The earnings per share (EPS) for the same period was $16.85, compared to $15.21 a year ago [1] - The reported revenue was a surprise of -3.58% compared to the Zacks Consensus Estimate of $4.38 billion, while the EPS surprise was -0.71% against the consensus estimate of $16.97 [1] Financial Metrics - Loss ratio (Consolidated) was 62.6%, higher than the estimated 61.7% by four analysts [3] - Combined ratio (Consolidated) stood at 90.3%, compared to the average estimate of 88.9% based on four analysts [4] - Total Reinsurance - Other underwriting expense ratio was 2.6%, slightly better than the three-analyst average estimate of 2.7% [4] - Total Reinsurance - Combined ratio was 88.9%, better than the average estimate of 89.4% based on three analysts [5] - Insurance - Total loss ratio was 65.3%, exceeding the estimated 61.5% by three analysts [6] - Insurance - Combined ratio was 94.4%, significantly higher than the average estimate of 88% based on three analysts [7] - Insurance - Other underwriting expense ratio was 16.9%, compared to the estimated 15.4% by three analysts [8] Premiums and Income - Net premiums earned were $3.69 billion, below the estimated $3.90 billion, but represented a year-over-year increase of 13.6% [9] - Net investment income was $528 million, exceeding the estimate of $453.63 million, with a year-over-year increase of 47.9% [9] - Total Reinsurance - Premiums earned were $2.73 billion, lower than the estimated $2.87 billion, but showed a year-over-year increase of 14.7% [10] - Insurance - Premiums earned were $962 million, below the three-analyst average estimate of $1.05 billion, reflecting a year-over-year change of 10.7% [11] - Other income (expense) was $23 million, slightly above the estimated $21.42 million, but showed a significant year-over-year decrease of 39.5% [12] Stock Performance - Shares of Everest Group have returned +5.4% over the past month, contrasting with the Zacks S&P 500 composite's -0.4% change [12] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [12]