Everest Q4 Earnings Miss, Revenues Top Estimates, Premiums Down Y/Y

Core Insights - Everest Group, Ltd. reported a fourth-quarter 2025 operating income of $13.26 per share, missing the Zacks Consensus Estimate by 0.8%, but showing a recovery from a loss of $18.39 in the previous year [1][7] - The company benefited from a strong Reinsurance segment and solid core fixed-income investment returns, although these positives were partially offset by weak performance in insurance businesses, higher expenses, and underwriting losses [1] Financial Performance - Total operating revenues for Q4 2025 were nearly $4.4 billion, a decline of 4.6% year over year, but exceeded the Zacks Consensus Estimate by 2.7% [4] - Gross written premiums fell 8.6% year over year to $4.3 billion, with strong growth in specialty lines offset by targeted reductions in casualty lines [4][7] - Net investment income rose 18.8% year over year to $562 million, significantly surpassing both the estimate of $330.6 million and the Zacks Consensus Estimate of $456.4 million [5][10] - Total claims and expenses decreased by 28.1% to $3.9 billion, primarily due to lower incurred losses and loss adjustment expenses [5] Segment Analysis - The Reinsurance segment generated gross written premiums of $3.2 billion, down 3.6% year over year, reflecting lower volumes in certain lines [8] - The Insurance segment posted gross written premiums of $1.1 billion, down 19.7% year over year, with declines in several lines offsetting higher premiums in Accident and Health [9] Capital and Equity - Everest Group ended Q4 2025 with total investments and cash of $45.4 billion, up 9.4% from the end of 2024 [10] - Shareholders' equity rose 11.4% year over year to $15.5 billion, and book value per share increased 10.8% to $379.7 [10] Full-Year Highlights - For the full year 2025, operating income per share surged 49.3% year over year to $44.54, beating estimates by 2.9% [12] - Total revenues rose 1.24% year over year to $17.5 billion, roughly in line with the Zacks Consensus Estimate [12] - Gross written premiums fell 2.9% year over year to $17.7 billion, lower than the estimate of $18.2 billion [12]