What's in the Cards for Everest Group This Earnings Season?

Core Viewpoint - Everest Group, Ltd. is expected to report its fourth-quarter 2024 earnings on February 3, with a mixed performance in previous quarters, beating estimates in three out of the last four quarters while missing in one [1] Premium Growth - The growth in net written premiums is anticipated to be driven by strong performance in the Reinsurance and Insurance segments, with an expected increase of 18.2% to $4.5 billion in the fourth quarter [2] - The Insurance segment is projected to benefit from increases in property, short tail business, specialty casualty business, and new business, with premiums earned expected to rise 4.3$1 billion [2] Reinsurance Segment - The Reinsurance segment is expected to show solid international growth, with premiums earned anticipated to improve by 14.5% to $3 billion in the fourth quarter [3] Investment Income - Net investment income is likely to increase by 2.1$419.5 million, although the Zacks Consensus Estimate is higher at $495 million, indicating a 20.4$4.44 billion, reflecting a 21.3% increase from the year-ago figure, driven by higher net written premiums and net investment income [5] Underwriting Results - Despite potential volatility from catastrophe losses, underwriting results are expected to benefit from rate increases and exposure growth, with a projected combined ratio of 89.8, significantly better than the Zacks Consensus Estimate of 105 [6] - Underwriting income from the Insurance segment is estimated at $161.9 million, while the Reinsurance segment is expected to contribute$245.4 million [7] Claims and Expenses - Total claims and expenses are projected to increase by 7.9% to $3.6 billion, primarily due to higher incurred losses and various underwriting expenses [7] Loss Ratio and Share Buybacks - The attritional loss ratio is expected to improve due to contributions from both segments and disciplined underwriting practices, with share buybacks anticipated to positively impact the bottom line [8] Earnings Predictions - The Zacks Consensus Estimate for fourth-quarter earnings per share is pegged at a loss of$5.77, indicating a significant decrease of 122.9% from the year-ago quarter [8] Earnings ESP and Zacks Rank - Everest Group has an Earnings ESP of -43.22%, indicating a lower likelihood of an earnings beat, with the Most Accurate Estimate at a loss of $8.26 compared to the Zacks Consensus Estimate [10] - The company currently holds a Zacks Rank of 4 (Sell) [11]