Everest Group (EG) investor relations material

Executive summary

• Q3 net income was $233M; adjusted net operating income was $290M, or $7.62 per diluted share, while diluted EPS was $6.12.

• Record quarterly net investment income of $634M supported results amid weaker underwriting and lower earned premiums.

• Strategy prioritized underwriting margin, reserve conservatism and risk-adjusted returns over premium volume; casualty exposure was reduced while selected specialty and international opportunities remained growth areas.

• Booked reserves exceeded actuarial central estimates by more than $850M at September 30, with most of the margin in reinsurance.

Financial highlights

• Core GWP was $3.663B, down 4.0% YoY on a comparable basis; total Q3 GWP was $3.742B, down 14.5% reported.

• Q3 revenue was $3.713B versus $4.319B YoY; nine-month net income was $1.445B and adjusted net operating income was $1.620B.

• Quarterly net investment income was a record $634M, including $144M from private equity; nine-month net investment income was $1.725B.

• Net pre-tax catastrophe losses were $302M for Core businesses; net unfavorable prior-year development was $268M, adding 8.5 points to the combined ratio.

• Nine-month operating cash flow was $1.606B versus $3.466B; cash ended at $987M, with cash and short-term investments totaling $4.0B.

Outlook and guidance

• January 1, 2027 reinsurance renewals are expected to be competitive, with further rate declines in CAT and peak zones; participation will remain selective against return thresholds.

• Reinsurance casualty conditions remain challenging; casualty portfolio growth is not planned until conditions improve materially.

• Global Wholesale & Specialty expects near-term combined ratios in the mid-to-high 90s while pursuing profitable specialty and international growth.

• Share repurchases have a quarterly floor of $300M, with additional purchases depending on balance-sheet strength and earnings generation.

• Legacy premiums are expected to decline as business earns off and commercial retail renewals transition; near-term operating cash flow could decline or turn negative as claims are paid.