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 to AIG, transferring ~$2B in gross written premiums and expecting a pre-tax non-operating charge of $250M–$350M over 2025–2026.

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

• Net income for Q3 2025 was $255M ($6.09 per diluted share), down 49.9% year-over-year, with net operating income at $316M ($7.54 per share).

• Shareholders' equity increased to $15.4B at September 30, 2025, with book value per share at $366.22, up 13.4% from year-end 2024.

• Strategic focus now on core reinsurance and specialty insurance businesses, with capital redeployment and increased flexibility.

Financial highlights

• Group gross written premium for Q3 2025 was $4.4B, down 1.1% year-over-year; net written premiums were $3.8B, and net investment income rose to $540M.

• Net operating income for 3Q25 YTD was $1.33B, up from $1.29B in 2024 YTD; total shareholder return annualized at 12.3%.

• Book value per share ended the quarter at $366.22; shareholders' equity stood at $15.4B.

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

• Operating cash flow for the quarter was $1.5B.

Outlook and guidance

• Management expects 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 as capital is unlocked; targeting mid-teens total shareholder return over the cycle.

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