Everest Group (EG) Q3 2025 earnings summary

Executive summary

• Announced exit from global retail insurance and sale of renewal rights for U.S., UK, European, and Asia-Pacific commercial retail insurance business to AIG, transferring ~$2 billion in gross written premiums and expecting a pre-tax non-operating charge of $250–$350 million over 2025–2026.

• Established a $1.2 billion adverse development cover (ADC) for North America insurance reserves for accident years 2024 and prior, covering $5.4 billion of reserves and enhancing reserve certainty.

• Net income for Q3 2025 was $255 million ($6.09 per diluted share), down 49.9% year-over-year, reflecting lower underwriting results and reserve strengthening.

• Focused on core reinsurance and wholesale/specialty insurance businesses, which have outperformed retail by ~10 combined ratio points.

• Shareholders' equity increased to $15.4 billion at September 30, 2025, up 10.8% from year-end 2024, mainly due to net income and unrealized investment gains.

Financial highlights

• Group gross written premium was $4.4 billion for Q3 2025, down 1.2% year-over-year; nine-month gross written premiums totaled $13.4 billion, compared to $16.6 billion in 2024.

• Combined ratio was 103.4% for Q3 2025, up 10.3 points year-over-year, driven by reserve strengthening and prior year loss development.

• Net investment income rose to $540 million in Q3 2025, driven by higher AUM and strong alternative asset returns.

• Book value per share ended at $366.22, up 13.4% from year-end 2024 (adjusted for dividends).

• Net operating income for 3Q25 YTD was $1,326 million, up from $1,289 million in 2024 YTD.

Outlook and guidance

• Expect improved returns on capital and value creation for shareholders following strategic actions, with capital relief from the retail exit and ADC expected to become more visible in the back half of 2026.

• Share repurchases expected to resume meaningfully as capital is unlocked; targeting mid-teens total shareholder return over the cycle.

• Management will monitor the impact of new Bermuda tax legislation and global minimum tax rules on deferred tax assets.

• Market conditions in reinsurance, especially CAT lines, expected to remain favorable through January 2026, though some pricing pressure anticipated.

• Improved agility and focus on core underwriting strengths expected to drive consistent performance.