Research · Sep 3, 2026
[EG] Everest Group Thesis 2026: Underwriting Discipline and Resegmentation Define Reinsurance Strategy
Everest Group, Ltd. 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. 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, multi-year deleveraging). 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). Risks: catastrophic loss years, casualty reserve adequacy, property cat pricing softening, competition (Munich Re, Swiss Re, Hannover Re, SCOR, RenaissanceRe, Arch, Axis), Bermuda 15% tax, investment portfolio MTM volatility.