Everest Group (EG) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $210 million, with net operating income of $276 million, both significantly down from Q1 2024 due to elevated catastrophe and aviation losses, mainly from California wildfires.

• Gross written premiums totaled $4.4 billion, flat to down 2% year-over-year, with property and specialty growth offset by U.S. casualty reductions.

• Combined ratio rose to 102.7% from 88.8% in Q1 2024, driven by 13.9 points of catastrophe losses.

• The company remains focused on disciplined underwriting, risk-adjusted returns, and U.S. casualty portfolio remediation.

• Book value per share increased to $332.39, or $345.57 excluding unrealized losses.

Financial highlights

• Net investment income rose to $491 million, supported by higher assets under management; book yield stable at 4.7%.

• Operating cash flow was $928 million, down from $1.1 billion in Q1 2024.

• Catastrophe losses totaled $534 million, mainly from California wildfires and the Myanmar earthquake.

• Group attritional loss ratio was 62.2%, up 330 bps year-over-year, mainly due to aviation losses and conservative loss picks.

• Net debt leverage at quarter-end was 15.4%, slightly lower than year-end 2024.

Outlook and guidance

• Management expects continued volatility in catastrophe losses but maintains ample liquidity and capital to meet obligations.

• U.S. casualty portfolio remediation is on track for completion by Q4 2025.

• Property and specialty lines continue to offer attractive risk-adjusted returns, with further capital deployment opportunities expected.

• Share repurchases will continue meaningfully throughout 2025, assuming normal catastrophe activity.

• No material changes to risk factors or guidance were issued for the remainder of 2025.