Everest Group (EG) investor relations material

Executive summary

• 2025 was a transformational year, marked by simplification, reserve risk reduction, portfolio reshaping, and balance sheet strengthening, including the sale of commercial retail insurance renewal rights and a $1.2B adverse development cover.

• Net operating income for 2025 was $1.9 billion, with net income of $1.6 billion and record net investment income of $2.1 billion, driven by higher AUM and strong alternative returns.

• Operating ROE reached 12.4% and TSR was 13.1% for the year, with book value per share rising to $379.83.

• Management team was strengthened with new executives, focusing on rigorous execution and a sharpened underwriting focus.

Financial highlights

• Gross written premiums for 2025 were $17.7 billion, down 3.1% year-over-year; Q4 premiums were $4.3 billion, down 8.6%.

• Q4 net operating income was $549 million, with an operating ROE of 14.2%.

• Combined ratio for 2025 was 98.4% (Group), with attritional combined ratio at 89.9%; Q4 combined ratio was 98.4%.

• Net investment income hit a record $2.1 billion for the year; Q4 investment income was $562 million.

• Book value per share ended at $379.83, up from $322.97 at year-end 2024.

Outlook and guidance

• Expense ratio expected to trend from 6-7% at the start of 2026 toward the lower end of 6% by 2027.

• Company expects to re-segment its businesses in 1Q 2026 to reflect the sale of commercial retail insurance renewal rights and focus on global wholesale and specialty insurance.

• Combined ratio for GW&S expected to stabilize in the mid-90s as business mix shifts toward more short-tail lines.

• Share repurchases will remain a priority, with a $200 million quarterly floor and willingness to exceed this amount.

• Approximately $150 million in restructuring charges anticipated in 2026 related to the exit from commercial retail insurance.