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Is a Beat in the Cards for Everest Group This Earnings Season?
Everest Everest (US:EG) ZACKSยท2025-07-25 14:17

Core Insights - Everest Group, Ltd. (EG) is anticipated to show revenue growth but a decline in earnings for Q2 2025, with revenues expected at $4.40 billion, reflecting a 4.1% increase year-over-year [1] - The consensus estimate for earnings per share is $15.14, indicating a 10.1% decline compared to the previous year [2] Revenue and Earnings Estimates - The Zacks Consensus Estimate for EG's second-quarter revenues is $4.40 billion, marking a 4.1% growth from the prior year [1] - The earnings estimate has decreased by 0.06% over the last 30 days, suggesting a year-over-year decline of 10.1% [2] Earnings Prediction Model - The model indicates a potential earnings beat for Everest Group, supported by a positive Earnings ESP of +0.85% and a Zacks Rank of 3 (Hold) [3][4] Segment Performance - The Reinsurance and Insurance segments are expected to drive premium growth, with net written premiums projected to rise 6.6% to $4.3 billion [5][11] - The Insurance segment is likely to see premiums earned increase by 0.6% to $915.1 million, while the Reinsurance segment is expected to improve by 12.6% to $3 billion [6][7] Investment Income and Underwriting Profitability - Net investment income is anticipated to be $475.6 million, slightly below the Zacks Consensus Estimate of $495 million, influenced by higher income from fixed maturity investments [8] - The combined ratio is expected to improve to 85.4, indicating enhanced underwriting profitability due to rate increases and exposure growth [9][11] Claims and Expenses - Total claims and expenses are projected to rise by 3.2% to $3.5 billion, driven by higher incurred losses and other underwriting expenses [12]