Everest (US:EG) ZACKSยท2025-07-31 18:06Core Insights - Everest Group, Ltd. reported second-quarter 2025 operating income of $17.36 per share, exceeding the Zacks Consensus Estimate by 14.7% and reflecting a 3% year-over-year increase [1] - The company's total operating revenues reached $4.5 billion, marking a 6.3% year-over-year increase and surpassing the consensus estimate by 2% [2] - Gross written premiums decreased by 0.7% year over year to $4.7 billion, driven by a 3.3% decline in the Insurance segment, partially offset by a 1.6% growth in the Reinsurance segment [2][8] Operational Update - Net investment income was reported at $532 million, a 0.7% increase year over year, attributed to a larger asset base and strong returns from fixed income and alternative investments [3] - Total claims and expenses rose 8.3% year over year to $3.6 billion, primarily due to higher incurred losses and various expenses [4] - Underwriting income increased by 7.5% year over year to $385 million [4] Segment Performance - The Reinsurance segment's gross written premiums were $3.2 billion, up 1.6% year over year, with notable growth in Property Catastrophe XOL and Property Pro-Rata [6] - The combined ratio for the Reinsurance segment improved by 330 basis points to 85.6, outperforming the Zacks Consensus Estimate [6] - The Insurance segment reported gross written premiums of $1.4 billion, down 3.3% year over year, with significant growth in Other Specialty and Accident and Health, but declines in Specialty Casualty and Workers' Compensation [7] Financial Update - As of the end of Q2 2025, Everest Group had total investments and cash of $44.3 billion, a 6.7% increase from the end of 2024 [8] - Shareholder equity increased by 7.9% from the end of 2024, with a book value per share of $358.08, up 10.8% [9] - Cash flow from operations was $1.1 billion, down 19.2% year over year, with dividends paid amounting to $84 million and share buybacks totaling $200 million [9]