Everest Group (EG) Q2 2025 earnings summary

Executive summary

• Net operating income was $734 million and net income $680 million for Q2 2025, with annualized operating ROE of 19.6% and net income ROE of 18.2%, driven by strong underwriting and investment results.

• Gross written premium was $4.7 billion, down 0.7% year-over-year; reinsurance GWP up 1.6%, insurance GWP down 3.3%.

• Underwriting profit totaled $385 million with a group combined ratio of 90.4%, reflecting light catastrophe losses and favorable prior-year reserve development.

• Net investment income reached $532 million, supported by strong private equity and alternative asset performance.

• Annualized total shareholder return was 14.8%, with $200 million in share repurchases for the quarter and $400 million year-to-date.

Financial highlights

• Book value per share rose to $358.08 at June 30, 2025, up from $327.68 a year ago and $322.97 at year-end 2024; excluding unrealized losses, book value per share was $364.10.

• Shareholders' equity increased to $15.0 billion at June 30, 2025, up from $13.9 billion at year-end 2024.

• Operating cash flow for Q2 2025 was $1.1 billion; total invested assets and cash reached $44.3 billion.

• Net income per diluted share was $16.10; net operating income per diluted share was $17.36.

• Premiums earned in Q2 2025 increased 8.1% to $3.99 billion.

Outlook and guidance

• Management expects to resume share repurchases in Q4 and into 2026 after a tempered approach in Q3 due to wind season.

• The 1-Renewal Strategy in insurance is nearly complete, aiming for improved portfolio quality and profitability.

• Favorable market conditions expected to continue through 2025, especially in property and specialty lines.

• Targeting mid-teens TSR over the cycle, supported by disciplined underwriting and capital deployment.

• Anticipate further improvement in expense ratio as international business scales and North America remediation concludes.