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Why Is Everest Group (EG) Up 4% Since Last Earnings Report?
EGEverest (EG) ZACKS·2025-03-05 17:35

Core Viewpoint - Everest Group reported a wider-than-expected operating loss in Q4 2024, driven by higher expenses and a decline in insurance performance, despite an increase in total operating revenues and net investment income [2][3][12]. Financial Performance - The operating loss for Q4 2024 was 18.39pershare,comparedtoalossestimateof18.39 per share, compared to a loss estimate of 16.65, and a significant drop from an operating income of 25.18pershareinthesamequarterlastyear[2].−Totaloperatingrevenuesreachednearly25.18 per share in the same quarter last year [2]. - Total operating revenues reached nearly 4.64 billion, marking a 26.7% year-over-year increase, surpassing the consensus estimate by 4.4% [3]. - Net investment income was 473million,up15.1473 million, up 15.1% year over year, although it fell short of the Zacks Consensus Estimate of 496 million [4]. - Total claims and expenses surged 59% to 5.4billion,primarilyduetoincreasedincurredlossesandvariousunderwritingexpenses[5].SegmentPerformance−TheReinsurancesegment′sgrosswrittenpremiumsincreasedby12.65.4 billion, primarily due to increased incurred losses and various underwriting expenses [5]. Segment Performance - The Reinsurance segment's gross written premiums increased by 12.6% year over year to 3.3 billion, driven by significant growth in Property Catastrophe XOL [7]. - The Insurance segment saw a decline in gross written premiums by 1.6% year over year to 1.3billion,withnotablegrowthinPropertyandShortTaillinesoffsetbydecreasesinAccidentandHealthandSpecialtyCasualtylines[8].FinancialHealth−AsoftheendofQ42024,totalinvestmentsandcashstoodat1.3 billion, with notable growth in Property and Short Tail lines offset by decreases in Accident and Health and Specialty Casualty lines [8]. Financial Health - As of the end of Q4 2024, total investments and cash stood at 41.5 billion, an increase of 11.8% from the previous year, while shareholder equity rose by 5.1% to 13.9billion[10].−Thebookvaluepersharewas13.9 billion [10]. - The book value per share was 322.97, reflecting a 6.1% increase from the end of 2023 [10]. - Cash flow from operations was reported at 4.9billion,up8.84.9 billion, up 8.8% year over year, with common share dividends totaling 86 million for the quarter [11]. Full-Year Overview - For the full year 2024, operating income per share decreased by 55% year over year to 29.83,missingtheZacksConsensusEstimateby2329.83, missing the Zacks Consensus Estimate by 23% [12]. - Total revenues for the year increased by 18.5% to 17.28 billion, slightly exceeding the consensus estimate by 1% [12]. Market Sentiment - Recent estimates for Everest Group have shown a downward trend, with a consensus estimate shift of -37.36% [13]. - The company currently holds a Zacks Rank of 5 (Strong Sell), indicating expectations of below-average returns in the coming months [15].