Everest Group 2025-26: Operating ROE 12.4%, $818M Buyback, Resegmenting
FY25 revenue $17.32B (+1%); op income $1.95B (+31%); NI $1.59B (+16%); EPS $37.86 (+19%). Operating ROE 12.4%; TSR 13.1%. Q4 segment performance — Reinsurance: $255M Q4 underwriting income; GWP -3.6% CC ex-reinstatement premiums (property cat XOL growth + Global Specialty expansion; disciplined casualty); combined ratio 91.2%. Insurance: GWP -20.1% CC to $1.1B; North American casualty pricing strong; property rates declined; sold renewal rights to commercial retail insurance business. Global Wholesale + Specialty: $3.6B FY GWP led by Jason Keen; attritional combined ratio mid-90s. Q4 GWP $4.3B; net investment income $562M; Q4 combined ratio 98.4%; attritional combined ratio ex-catastrophes + ADC 89.9%. 2025 strategic steps: simplified company, reduced reserve risk, reshaped portfolio, strengthened balance sheet. Reinsurance bound $6.3B+ premium at Jan 1 renewals with attractive opportunities in Asia. Completed casualty remediation in North America Insurance. Q4 buyback $400M; Jan 2026 +$100M. FY25 buyback $818M (+309% from $200M FY24); dividend $335M (flat); total debt $3.59B (-40% YoY from $5.94B FY24). FY26 framework: plan continued share buybacks; will report 3 segments from 2026 (post-2025 Form 10-K filing); Property Cat renewals expect similar rate pressure as Jan 1 (Florida reforms + reinsurance capacity).
Key takeaways
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Operating ROE 12.4% + TSR 13.1% — meaningful turnaround year post-2024 reserve actions. Everest Group delivered FY25 operating ROE of 12.4% with total shareholder return of 13.1% in 2025. The result reflects 2025 strategic steps: simplified the company, reduced reserve risk (post-2024 multi-billion dollar casualty reserve charge), reshaped the portfolio (sold commercial retail insurance renewal rights), strengthened the balance sheet (total debt -40% to $3.59B). The combination of disciplined underwriting + reduced casualty exposure + capital flexibility creates the multi-year compounding setup post-cleanup.
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Reinsurance bound $6.3B+ Jan 1 renewals + Asia opportunities — multi-year reinsurance compounder. Reinsurance segment bound over $6.3B of premium at January 1, 2026 renewals — meaningful indicator of underwriting capacity deployment. Combined with Q4 underwriting income of $255M + 91.2% combined ratio + attractive opportunities in Asia + property cat XOL growth + Global Specialty expansion, the reinsurance franchise is positioned for multi-year compounding through cycles. The segment maintained underwriting discipline in casualty lines (where peers have struggled) while expanding in higher-margin specialty + property cat.
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Insurance completed casualty remediation + sold commercial retail rights — multi-year derisking. The Insurance segment completed casualty remediation in North America (post-2024 reserve charge). GWP -20.1% CC to $1.1B Q4 reflects deliberate book reshaping. Sold renewal rights to commercial retail insurance business (a non-core segment exit). The combination = multi-year derisking supporting more sustainable underwriting profitability going forward. North American casualty pricing remains strong (positive for new business written post-cleanup).
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Global Wholesale + Specialty $3.6B GWP — high-quality growth pillar. Global Wholesale + Specialty (the legacy E&S + specialty franchise) generated $3.6B FY25 GWP with attritional combined ratio in the mid-90s. Led by Jason Keen, expected to increase underwriting profitability. Multi-year specialty + wholesale focus = higher-margin niche underwriting + lower commodity / casualty exposure than traditional commercial insurance.
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$818M FY25 buyback (+309% YoY); Q4 alone $400M + $100M Jan 2026 — aggressive capital return signaling undervaluation. FY25 buyback dramatic step-up to $818M vs $200M FY24. Q4 alone $400M + $100M in January 2026 = $500M deployed in the most recent 4 months of the period. Combined with multi-year deleveraging ($5.94B → $3.59B = -40% YoY) + dividend $335M, total capital return + balance sheet improvement multi-year story is positive. The aggressive buyback at depressed reinsurance valuation = TBV-accretive multi-year compounding lever.
Business
Everest Group, Ltd. is a Bermuda-domiciled global reinsurance + insurance company, with two reporting segments transitioning to three from 2026:
- Reinsurance (~75% of revenue): Property catastrophe + casualty + specialty reinsurance globally. Q4 underwriting income $255M; combined ratio 91.2%; $6.3B+ bound Jan 1 2026.
- Insurance (~25%): Specialty + casualty + property + workers comp + financial lines. Q4 GWP $1.1B (-20.1% CC). Casualty remediation completed; commercial retail rights sold.
- Global Wholesale + Specialty (Embedded): $3.6B FY GWP; led by Jason Keen.
FY26 resegmentation: 3 segments planned (likely Reinsurance + International Insurance + Wholesale/Specialty US Insurance).
Strategic moves FY25:
- Simplified company, reduced reserve risk, reshaped portfolio, strengthened balance sheet
- Operating ROE 12.4%; TSR 13.1%
- Reinsurance bound $6.3B+ Jan 1 2026 premium
- Completed casualty remediation in North America
- Sold commercial retail insurance renewal rights
- Total debt -40% to $3.59B (deleveraging)
- $818M FY25 buyback (+309% YoY); $400M Q4
- $100M January 2026 additional buyback
- Will report 3 segments from 2026
FY25 financial performance
| Metric (FY) | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue ($B) | 11.99 | 14.46 | 17.08 | 17.32 |
| Revenue YoY | n/a | +21% | +18% | +1% |
| Op income ($B) | 0.59 | 2.15 | 1.50 | 1.95 |
| Op margin | 4.9% | 14.9% | 8.8% | 11.3% |
| Net income ($B) | 0.60 | 2.52 | 1.37 | 1.59 |
| Diluted EPS ($) | 15.19 | 60.24 | 31.78 | 37.86 |
| Operating ROE | n/a | n/a | n/a | 12.4% |
| FCF ($B) | 3.70 | 4.55 | 4.96 | 3.40 |
| Total debt ($B) | 5.43 | 5.74 | 5.94 | 3.59 |
| Dividends ($M) | -255 | -288 | -334 | -335 |
| Buyback ($M) | -61 | 0 | -200 | -818 |
The earnings progression: revenue grew $11.99B → $17.32B (FY22-25, +44% over 3 years). FY24 EPS $31.78 reflected casualty reserve charges (multi-billion dollar reserve build); FY25 EPS $37.86 (+19%) recovery. Operating ROE 12.4% solid post-cleanup; TSR 13.1%.
Total debt $3.59B (-40% YoY) — major deleveraging. Buyback $818M (+309%) — meaningful capital return acceleration. Dividend $335M flat YoY.
Capital allocation
- Capex: $0 (insurance / reinsurance model).
- Dividends: $-335M FY25 (flat YoY).
- Buybacks: $-818M FY25 (+309% YoY); $400M Q4; $100M Jan 2026.
- Total capital return FY25: ~$1.15B.
- Total debt: $3.59B (-40% YoY) — multi-year deleveraging acceleration.
- FCF: $3.40B FY25.
FY26 outlook (per Q4 2025 call, 2026-02-05)
| FY26 framework | Detail |
|---|---|
| Share buybacks | Continue ($100M January 2026 + ongoing) |
| Segment reporting | 3 segments from 2026 (post-FY25 10-K) |
| Reinsurance Jan 1 renewals | $6.3B+ bound; Asia opportunities |
| Property Cat renewals | Similar rate pressure (Florida + capacity) |
| Insurance | Continued casualty discipline + Wholesale + Specialty growth |
| Global Wholesale + Specialty | Increased underwriting profitability |
| Underwriting | Multi-year reshape post casualty remediation |
Management noted continued multi-year derisking + buyback acceleration + 3-segment reporting + Asia + Wholesale + Specialty expansion + balanced growth across reinsurance + insurance.
Key risks
Catastrophic loss years. Reinsurance fundamentally exposed to large catastrophic loss events. A bad CAT year compresses underwriting + book value materially.
Casualty reserve adequacy. Post-2024 casualty reserve charges; multi-year reserve adequacy assessment needed. Any further reserve development negative.
Property cat pricing softening. Q4 management noted Property Cat renewal rate pressure similar to Jan 1 (Florida reforms + reinsurance capacity). Multi-quarter softening cycle.
Multi-region competitive landscape. Munich Re, Swiss Re, Hannover Re, SCOR, Berkshire Re, RenaissanceRe, Arch Capital, Axis Capital, Hiscox, Beazley all compete.
Commercial retail divestiture aftermath. Multi-quarter post-divestiture transition.
Bermuda 15% corporate tax. Multi-year tax dynamics.
Investment portfolio MTM volatility. Multi-year investment portfolio dynamics + interest rate environment.
Capital Partners / fee dynamics. Limited disclosure on capital partners (vs RNR).
Climate change dynamics. Multi-year climate change increasing severity + frequency of natural catastrophes.
Regulatory environment. Bermuda regulator (BMA) + multi-region insurance regulations.
Casualty + financial lines volatility. Multi-year casualty claim emergence + reserve development.
Cyber + emerging risks. Cyber exposure with limited historical data.
Currency / FX. Multi-region operations expose EG to FX.
Buyback discipline. $818M at multi-year accelerated pace; multi-year discipline at different valuations.
Resegmentation execution. 3-segment reporting transition + investor education.
Leadership transition (Jason Keen Wholesale). Multi-year leadership execution.
Bottom line
Everest Group FY25 is the multi-year derisking + portfolio reshape + capital return acceleration year: revenue $17.32B (+1%); op income $1.95B (+31%); NI $1.59B (+16%); EPS $37.86 (+19%); FCF $3.40B. Operating ROE 12.4%; TSR 13.1%. Reinsurance Q4 underwriting income $255M; combined ratio 91.2%; bound $6.3B+ Jan 1 2026 + Asia opportunities. Insurance Q4 GWP $1.1B (-20.1% CC); casualty remediation completed; commercial retail rights sold. Global Wholesale + Specialty $3.6B FY GWP; attritional combined mid-90s. Q4 GWP $4.3B; combined ratio 98.4%; attritional ex-CAT + ADC 89.9%. Strategic steps: simplified, reduced reserve risk, reshaped portfolio, strengthened balance sheet. Total debt -40% to $3.59B (deleveraging). FY25 buyback $818M (+309%); $400M Q4 + $100M Jan 2026.
FY26 framework: continued share buybacks; 3-segment reporting from 2026 post-FY25 10-K; Property Cat renewal pressure similar to Jan 1; Reinsurance + Insurance + Wholesale/Specialty expansion.
The risks are real — catastrophic loss years, casualty reserve adequacy, property cat pricing softening, multi-region competitive landscape (Munich Re, Swiss Re, Hannover Re, SCOR, RenaissanceRe, Arch, Axis, Hiscox, Beazley), commercial retail divestiture aftermath, Bermuda 15% corporate tax, investment portfolio MTM volatility, climate change dynamics, regulatory environment, casualty + financial lines volatility, cyber + emerging risks, FX, buyback discipline, resegmentation execution, leadership transition.
But the structural thesis (Bermuda-domiciled global reinsurance + insurance leader + Reinsurance ~75% of revenue + Insurance ~25% + Global Wholesale + Specialty $3.6B + Reinsurance bound $6.3B+ Jan 1 2026 + Q4 reinsurance combined ratio 91.2% + casualty remediation completed + commercial retail rights sold + multi-year deleveraging $5.94B → $3.59B (-40%) + Operating ROE 12.4% + 13.1% TSR + $818M FY25 buyback (+309%) + $400M Q4 + $100M Jan 2026 + 3-segment reporting from 2026) is intact and FY25 confirms.
Quality global reinsurance + insurance compounder mid-derisking-cycle, with reinsurance underwriting franchise + Insurance casualty cleanup + Global Wholesale + Specialty growth + multi-year deleveraging + capital return acceleration. The FY25 +31% op income + +19% EPS + 12.4% operating ROE + 13.1% TSR + reinsurance $6.3B+ Jan 1 + casualty remediation done + total debt -40% + buyback $818M (+309%) + Q4 $400M + Jan 2026 $100M + 3-segment FY26 creates one of the cleaner reinsurance + insurance derisking compounding setups for investors seeking exposure to reinsurance underwriting + Insurance restructuring + capital return + multi-year deleveraging. The conservative FY26 framework + 3-segment reporting + continued buyback + Asia opportunities + Global Wholesale + Specialty growth provides multiple paths to outperformance over a multi-year horizon. CAT loss years + casualty reserves + property cat pricing + competitive landscape + investment portfolio MTM remain ongoing risks, but the underwriting franchise + derisking + capital return + Wholesale + Specialty support continued compounding through cycles.
Citations
- Everest Group, Ltd. FY25 Form 10-K (filed February 2026, SEC EDGAR).
- EG Q4 2025 earnings call, 2026-02-05 — Reinsurance: Q4 underwriting income $255M; GWP -3.6% CC ex-reinstatement (property cat XOL growth + Global Specialty expansion; disciplined casualty); combined ratio 91.2%. Insurance: Q4 GWP -20.1% CC to $1.1B; North American casualty pricing strong; property rates declined; sold renewal rights to commercial retail insurance business. Global Wholesale + Specialty: $3.6B FY GWP led by Jason Keen; attritional combined ratio mid-90s. 2025 Strategic Steps: simplified company, reduced reserve risk, reshaped portfolio, strengthened balance sheet. Operating ROE 12.4%; TSR 13.1%. Q4 GWP $4.3B; net investment income $562M; combined ratio 98.4%; attritional combined ratio ex-catastrophes + ADC 89.9%. Reinsurance bound $6.3B+ at Jan 1 renewals; attractive opportunities in Asia. Completed casualty remediation in North America Insurance. Q4 buyback $400M; Jan 2026 +$100M. FY26: plan to continue share buybacks; will report 3 segments from 2026 (post-FY25 Form 10-K filing); Property Cat renewals expect similar rate pressure as Jan 1 (Florida reforms + reinsurance capacity).
- EG Q3 / Q2 / Q1 2025 earnings calls — supporting reinsurance + insurance trajectory + casualty remediation progression.
- Internal financial_statements view (consolidated annual + cash flow + capital structure).