Everest Group's Q2 2025: Unraveling Contradictions in Reinsurance Pricing, Capital Strategy, and Loss Ratios

Pricing trend in property reinsurance market, capital management strategy, insurance loss ratio and mix shift impact, risk margin and combined ratio guidance, pricing and market conditions are the key contradictions discussed in Everest Group's latest 2025Q2 earnings call.



Strong Quarterly Performance and Underwriting Profit:
- Everest Group reported net operating income of $734 million for Q2 2025 and an annualized operating ROE of nearly 20%.
- The strong results were driven by underwriting profit, which totaled $385 million on a combined ratio of 90.4%, and favorable prior year development in the Reinsurance attritional property book.

Reinsurance Segment Growth:
- Reinsurance premiums increased by 1.1%, while the Insurance segment declined by 3.1%.
- Growth in Reinsurance was driven by improvements in business mix and minimal catastrophe losses, with an attritional loss ratio reduction of 30 basis points.

Insurance Segment and Casualty Strategy:
- The Insurance segment saw an underwriting loss of $18 million with a combined ratio of 102% and an attritional loss ratio of 68.7%.
- The 1-Renewal Strategy in U.S. casualty, aiming to improve portfolio quality, resulted in a 27% decrease in premiums, offset by strong rate increases averaging 16%.

Capital Management and Share Repurchases:
- Everest returned $400 million to shareholders through share repurchases year-to-date, with $200 million in Q2.
- The capital management strategy aligns with maintaining a strong balance sheet and reinforce