What is Everest Group's gross profit margin?

What is Everest Group's latest dividend and current dividend yield?

Did Everest Group beat or miss consensus estimates last quarter?

What does Everest Group do and what are its main business segments?

What were the key takeaways from Everest Group’s earnings call?

What is the market's earnings forecast for Everest Group next quarter?

What guidance did Everest Group's management provide for the next earnings period?

What were the key takeaways from Everest Group's earnings call?

- **Strategic Progress**: 2025 ROE 12.4%, TSR 13.1%, with disciplined portfolio reshaping. 
- **Q4 Financial Strength**: $549M net operating income, 14.2% ROE, $379.83 book value per share. 
- **Share Buybacks**: $400M Q4 buybacks, $100M in January, with $200M quarterly floor. 
- **Market Position**: Property cat rates down 10% YoY, but above technical price; selective capacity deployment. 
- **Expense Management**: 2026 restructuring costs ~$150M, with GW&S expense ratio targeting low 12% range. 
- **Reserve Stability**: Reinsurance reserves robust; insurance reserves stabilized with ADC coverage. 
- **Growth Drivers**: Mt. Logan AUM $2.5B, specialty book $2B GWP with mid-80s loss ratio. 
- **Risk Management**: Reduced U.S. casualty exposure, maintaining rate adequacy despite social inflation. 


**【CEO Summary Section】**
- **Strategic Transformation**: Completed $1.2 billion adverse development cover (ADC) and divested commercial retail business, resulting in 12.4% operating ROE and 13.1% TSR in 2025. 
- **Q4 Results**: 
  - Gross written premiums (GWP) $4.3B (-8.6% YoY), driven by deliberate underwriting actions and divestiture. 
  - Combined ratio 98.4% (including $216M cat losses and $122M ADC premium). 
  - Reinsurance underwriting income $255M, with disciplined casualty portfolio reduction ($1.2B GWP off since 2024). 
  - Global Wholesale & Specialty (GW&S) GWP $3.6B, targeting mid-90s attritional combined ratio in 2026. 
- **Share Buybacks**: Repurchased $400M in Q4 and $100M in January 2026, with $200M quarterly floor. 
- **Market Position**: Maintaining rate adequacy in property cat (down 10% YoY at Jan 1 renewals), with selective capacity deployment. 

**【CFO Financial Commentary】**
- **Q4 Financials**: 
  - Net operating income $549M, operating ROE 14.2%. 
  - Net investment income $562M (+$125M from alternatives). 
  - Book value per share $379.83 (+20.1% YoY). 
- **Expense Management**: 
  - Underwriting-related expense ratio 7.2% (up 1ppts due to restructuring). 
  - 2026 restructuring costs ~$150M ($80M real estate-related in Q4 2026). 
- **Capital Deployment**: 
  - 2026 buyback guidance: $200M quarterly floor, with potential upside. 
  - Excess capital from ADC and renewal rights transaction to be unlocked in H2 2026. 

**【Q&A Highlights】**
- **Expense Ratio Outlook**: Global Wholesale & Specialty (GW&S) expense ratio to trend to low 12% range by 2027. 
- **Reinsurance Pricing**: Property cat rates down 10% YoY at Jan 1, but above technical price. Everest reduced capacity by 2% YoY. 
- **Capital Management**: Share buybacks prioritized over M&A, with ~$1B capital supporting other segment reserves. 
- **Reserve Position**: Reinsurance reserves robust; insurance reserves stabilized with ADC coverage. 
- **Mt. Logan Growth**: AUM $2.5B, expanding into new lines of business. 
- **Florida Reforms**: Positive impact on property cat underwriting observed in data. 
- **Specialty Book Performance**: $2B GWP specialty book with mid-80s attritional loss ratio. 
- **Energy Losses**: Q4 energy losses in wholesale business were episodic, not indicative of trend. 
- **Social Inflation**: U.S. casualty pricing exceeds loss trend, but book size constrained by risk environment. 


Everest Group, Ltd. (EG) Q4 2025 Earnings Call Transcript

- **Strategic Restructuring**: Exited retail insurance ($2B premium transfer to AIG) and secured $1.2B ADC to isolate legacy casualty risks.
- **Core Business Strength**: Reinsurance (87% combined ratio) and Specialty Insurance ($100M underwriting profit) drive growth, while U.S. casualty portfolio is 95%+ combined ratio post-renewal.
- **Financial Resilience**: $540M net investment income growth, $15.4B shareholders' equity, and 15.2% YoY book value increase.
- **Capital Flexibility**: Plans to resume buybacks as $200M+ annual capital freed up from retail exit and reserve runoff.
- **Market Outlook**: Property cat market favorable through 1/1/2026, with selective growth in specialty lines.

**CEO Summary Section**
- Announced strategic exit from global retail insurance, transferring $2 billion in gross written premium to AIG, with a pretax charge of $250-350 million.
- Established a $1.2 billion adverse development cover (ADC) for North America insurance reserves, with $200 million co-participation, to mitigate legacy casualty risks.
- Highlighted strong performance in Reinsurance (combined ratio 87%) and Wholesale & Specialty Insurance, with $500 million in gross written premium and $100 million in underwriting income.
- Emphasized disciplined underwriting in U.S. casualty lines, with 45% of business not renewed, and a focus on short-tail lines like property and accident & health.
- Projected capital flexibility for share buybacks and strategic investments in high-return segments.

**CFO Financial Commentary**
- Operating income of $316 million (down 50% YoY) due to $478 million net reserve strengthening in Insurance and Other segments.
- Reinsurance showed favorable prior year development ($29 million), while Insurance faced $361 million in reserve adjustments.
- Net investment income of $540 million, up 72% YoY, driven by alternative assets.
- Shareholders' equity of $15.4 billion, with book value per share at $366.22, up 15.2% YoY.
- Expect to resume share buybacks as capital flexibility improves post-2026.

**Q&A Highlights**
- **Capital Allocation**: Management prioritizes share buybacks (trading below book value) and strategic growth in Reinsurance and Specialty lines.
- **ADC Sizing**: $1.2 billion cover designed to create finality for legacy reserves, with no loss corridor and attachment at strengthened reserves.
- **Casualty Spillover**: Reinsurance casualty portfolio is top quartile, distinct from legacy Insurance book, with minimal risk of reserve spillover.
- **Reinsurance Pricing**: Property cat market remains favorable, with 10%+ price declines expected at 1/1/2026, but still well-priced for Everest.
- **ROE Trajectory**: Mid-teens ROE target achievable through cost rationalization and capital deployment in high-margin segments.


Everest Group, Ltd. (EG) Q3 2025 Earnings Call Transcript

- **Record Q2 Performance**: $734M net operating income, 19.6% ROE, and $532M investment income highlight strong underwriting and portfolio management.
- **Reinsurance Dominance**: 42% YoY underwriting profit growth, 85.6% combined ratio, and 15% Cat XOL growth reflect disciplined risk selection.
- **Insurance Restructuring Success**: Casualty GWP down 27% but 16% rate increase on retained business; Specialty/A&H up 40%/24% YoY.
- **Capital Return Focus**: $400M buybacks year-to-date, with plans to resume pace post-hurricane season.
- **Property Cat Attractiveness**: ROEs exceed share buybacks, with June 1 renewals flat and July 1 down 5-10% but terms/conditions held.


**【CEO Summary Section】**
- **Strong Q2 Results**: Net operating income of $734M, annualized operating ROE of 19.6%, driven by underwriting and investment performance.
- **Reinsurance Growth**: Underwriting profit up 42% YoY to $436M, combined ratio of 85.6% (vs. 88.9% prior year), with property Cat GWP up 15% and pro rata up 8%.
- **Insurance Restructuring**: Casualty GWP down 27% (47% of business not renewed), but retained business saw 16% rate increase. Specialty and A&H grew 40% and 24% YoY.
- **1-Renewal Strategy**: Completes in Q3, reducing U.S. casualty exposure by $800M since 2024, with 88% of retained casualty business in loss-sensitive structures.
- **Capital Management**: $200M share buybacks in Q2, $400M year-to-date, with plans to resume pace post-hurricane season.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP net income $734M, Non-GAAP EPS $1.08 (vs. $0.95 consensus). Net investment income $532M, up 12% YoY, driven by private equity.
- **Reserve Position**: Adequate risk margin in Insurance, Reinsurance attritional property reserves release 1.3pts to combined ratio. U.K. aviation ruling added $84M net loss.
- **Expense Management**: Group expense ratio 18.9% (Insurance segment), driven by slower earned premium growth and platform investments.
- **Capital Allocation**: $200M buybacks in Q2, targeting 3.4-year fixed income duration with AA- credit quality.

**【Q&A Key Highlights】**
- **Loss Ratio Outlook**: Insurance attritional loss ratio at 68.7% (up 6pts YoY), with 6pts from risk margin. Mix shift to short-tail, international business expected to reduce ratio over 1-2 years.
- **Property Cat Pricing**: June 1 renewals flat, July 1 down 5-10%, but terms/conditions held. ROEs in Property Cat exceed share buyback attractiveness.
- **PML Growth**: Net PMLs up YoY, driven by pricing dynamics and Mount Logan hedging. Everest remains within risk guidelines.
- **International Insurance**: 23% Q2 growth, U.K. wholesale and European retail at low 90s combined ratios. Scaling infrastructure to leverage premium growth.
- **Aviation Losses**: $84M net loss from U.K. court ruling, with cedent notifications and private settlements completed. No further exposure expected.


Everest Group, Ltd. (EG) Q2 2025 Earnings Call Transcript

- **Reinsurance Strength**: 16% property growth offsets 22% casualty decline, with attritional loss ratio stable at 62.2%.
- **Capital Allocation**: $200M share buybacks prioritize value return; book value per share +3.5% to $332.39.
- **Risk Management**: Conservative underwriting yields 57.4% reinsurance attritional loss ratio (ex aviation).
- **Key Risks**: Tariffs may modestly increase loss trends; Q1 U.S. casualty premium reduced by 50%.
- **Profitability**: Aviation portfolio expected to turn profitable in 2025 despite $70M Q1 loss.

**【CEO Opening Remarks】**
- Q1 2025 revenue growth driven by disciplined underwriting and risk-adjusted returns across reinsurance and insurance segments.
- Combined ratio elevated at 102.7% due to California wildfire and aviation losses, but attritional loss ratios remain stable.
- Reinsurance property growth of 16% (8% excluding reinstatement premiums) offset by 22% decline in casualty premium.
- Share buybacks of $200M (avg $348/share) prioritized due to excess capital and attractive valuation.

**【CFO Financial Highlights】**
- Operating income of $276M despite $461M cat losses, with reinsurance segment driving strong returns.
- Attritional loss ratio of 62.2% reflects conservative risk margins in U.S. casualty lines.
- Net investment income of $491M driven by higher asset levels, with fixed-income portfolio yielding 4.7%.
- Book value per share increased 3.5% to $332.39, excluding unrealized depreciation.

**【Q&A Key Takeaways】**
- **Reinsurance Growth**: Property cat pricing moderating but still attractive; 16% growth in reinsurance property (excluding reinstatement).
- **Share Buybacks**: $200M Q1 buyback; plans to continue if capital position and valuation remain favorable.
- **Tariff Impact**: Prolonged tariffs may modestly increase loss cost trend, but frequent trend analysis will enable quick responses.
- **Aviation Loss**: $70M net loss in line with expectations; portfolio expected to turn profitable in 2025.
- **Casualty Strategy**: 50% of U.S. casualty premium not renewed in Q1, targeting completion of portfolio remediation by Q4.


Everest Re (EG)-1 May 25-2025 Q1 Earnings call transcript

- **Wildfire Impact**: $350-450M pre-tax loss from California wildfires, 1% market share exposure. Q4 cat losses $275M (Hurricane Milton).
- **Reserve Strength**: $1.7B reserve additions, but 2024 operating income $1.3B, 9% ROE.
- **Reinsurance Growth**: 12.6% premium growth (excl. reinstatement), 91.5% combined ratio. Casualty pro rata down 7% due to underwriting discipline.
- **Casualty Remediation**: 40% U.S. casualty premiums not renewed in Q4. 2025 rate assumption 12-15% loss trend.
- **Share Buybacks**: Expect active repurchases in 2025, targeting mid-teens total shareholder return.
- **Property Cat Strategy**: 5-15% rate decreases for loss-attched programs. European cat rates up 10% due to storm/flood risk.
- **Financial Strength**: $13.9B shareholder equity, 15.6% net debt leverage. 2024 cash flow $5B.


**【CEO Opening Remarks】**
- **Wildfire and Aviation Losses**: Projected pre-tax net loss of $350-450M from California wildfires, primarily impacting Reinsurance division. Loss estimate for aviation tragedy TBD but expected to be manageable in Q1.
- **Reserve Strengthening**: Added $1.7B to net reserves, including $200M for 2024 loss picks. Despite this, achieved $1.3B operating income and 9% ROE for the year.
- **Reinsurance Performance**: Q4 underwriting income of $286M, annualized $1.2B. Combined ratio (excluding prior year cat dev) of 91.5%. Premium growth of 12.6% (excl. reinstatement), driven by property and specialty lines. Casualty pro rata down 7% due to disciplined underwriting.
- **Insurance Segment**: Q4 gross written premium down marginally due to casualty remediation. Combined ratio of 100.7% on current period basis. Specialty Casualty now 25% of global insurance premiums (down from 30% YoY), with improved account quality.

**【CFO Financial Highlights】**
- **Q4 Results**: Gross written premium $4.7B (+7.2% const. dollars). Combined ratio 135.5%, including $1.5B prior year reserve dev. Net cat losses $275M (Hurricane Milton), offset by $125M prior year releases.
- **Reinsurance Segment**: Q4 underwriting income $286M, annualized $1.2B. Combined ratio 90.4% (83.7% excl. profit commissions). Property cat XOL growth 26.2% YoY. Casualty pro rata down 3% at 1/1 renewal.
- **Insurance Segment**: Gross premium $1.4B (-1.6% const. dollars). Combined ratio 135.5%, driven by $1.1B U.S. casualty reserve strengthening. Specialty Casualty growth >30% QoQ, offset by 23% U.S. casualty premium reduction.
- **Investment Income**: $473M net income, 4.7% book yield. Shareholder equity $13.9B, book value per share $322.97 (+8.7% YoY).

**【Q&A Key Themes】**
- **Capital Management**: Expect active share buybacks in 2025, targeting mid-teens total shareholder return. 2024 cash flow $5B, net debt leverage 15.6%.
- **Casualty Portfolio Remediation**: 40% of U.S. casualty premiums not renewed in Q4. 2025 focus on rate adequacy (12-15% loss trend) and mix shift to higher-quality accounts.
- **Property Cat Market**: Pricing discipline maintained, 5-15% rate decreases for loss-attched programs. European cat rates increased 10% due to rising storm/flood risk.
- **Wildfire Impact on Pricing**: Event may stabilize cat market pricing, but Everest maintains selective approach to deploying capacity.
- **Tax Rate**: 2025 effective tax rate expected 17-18%, up from 11-12% in 2024 due to Bermuda operations.
- **International Growth**: Insurance segment targeting scale in 12 markets, excluding new entries to leverage expenses. Short-tail specialty lines growing >30% QoQ.


EG

EG fundamentals

Earnings Call

You can ask Aime