Everest Group Q2 Earnings Beat Estimates, Revenues Increase Y/Y

Everest Group, Ltd.’s EG second-quarter 2025 operating income of $17.36 per share beat the Zacks Consensus Estimate by 14.7%. The bottom line increased 3% year over year. 

The quarterly results reflected higher written premiums and improved combined ratio of the Reinsurance segment, partially offset by the weakness in the Insurance segment.

Operational Update

Everest Group’s total operating revenues of $4.5 billion increased 6.3% year over year on higher premiums earned and net investment income. The top line beat the consensus mark by 2%.

Everest Group, Ltd. Price, Consensus and EPS Surprise

Everest Group, Ltd. price-consensus-eps-surprise-chart | Everest Group, Ltd. Quote

Gross written premiums deteriorated 0.7% year over year to $4.7 billion due to a decline of 3.3% in Insurance, partially offset by 1.6% growth in Reinsurance. Our estimate was $5 billion.

Net investment income was $532 million, which increased 0.7% year over year. The upside was driven by a larger asset base as well as strong core fixed income and alternative investment returns. Our estimate was $475.6 million. The Zacks Consensus Estimate was pegged at $495 million. 

Total claims and expenses rose 8.3% year over year to $3.6 billion, primarily due to higher incurred losses and loss adjustment expenses, commission, brokerage, taxes and fees, other underwriting expenses, corporate expenses and interest, fees and bond issue cost amortization expense. Our estimate was $3.5 billion.

Underwriting income was $385 million, which increased 7.5% year over year.

Pre-tax catastrophe losses net of estimated recoveries and reinstatement premiums were $20 million, narrower than the loss of $135 million in the year-ago quarter.

The combined ratio deteriorated 10 basis points (bps) year over year to 90.4 in the reported quarter. The Zacks Consensus Estimate was 91, while our estimate was 85.4.

Segment Update

The Reinsurance segment’s gross written premiums were $3.2 billion, up 1.6% year over year. Growth was primarily led by a 15.2% increase in Property Catastrophe XOL and an 8.5% increase in Property Pro-Rata, partially offset by a 14.9% decrease in Casualty Pro-Rata, when adjusting for reinstatement premiums. Our estimate was $3.5 billion.

The combined ratio of the Reinsurance segment improved 330 bps to 85.6. The Zacks Consensus Estimate was 88. Our estimate was 85.3.

The Insurance segment generated gross written premiums of $1.4 billion, down 3.3sa% year over year. Everest Insurance grew 39.7% in Other Specialty and 24.1% in Accident and Health. Growth was offset by decreases of 27.3% in Specialty Casualty and 7.2% in Workers' Compensation. Our estimate was $1.5 billion.

The combined ratio deteriorated 820 bps to 102 for the Insurance segment. Our estimate was 89. The Zacks Consensus Estimate was pinned at 98.

Financial Update

Everest Group exited the second quarter of 2025 with total investments and cash of $44.3 billion, up 6.7% from the 2024-end level. Shareholder equity at the end of the reported quarter increased 7.9% from the figure at the end of 2024 to $15 billion.

Book value per share was $358.08 as of June 30, 2025, up 10.8% from the 2024-end level. The annualized net income return on equity was 18.2%, which contracted 140 bps from the year-ago quarter.

Everest Group’s cash flow from operations was $1.1 billion in the quarter, down 19.2% year over year. The company paid common share dividends of $84 million during the quarter and bought back shares worth $200 million.

Zacks Rank

Everest Group currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

Chubb Limited CB reported second-quarter 2025 core operating income of $6.14 per share, which outpaced the Zacks Consensus Estimate by 4.2%. The bottom line increased 14.1% year over year. Net premiums written improved 6.3% year over year to $14.2 billion in the quarter, which is in line with the Zacks Consensus Estimate. Our estimate was pegged at $14 billion. Net investment income was $1.5 billion, up 6.8 % year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, while our estimate for the same was $1.9 billion. Revenues of $14.8 million missed the Zacks Consensus Estimate by a whisker but improved 6.9% year over year.

Arch Capital Group Ltd. ACGL reported second-quarter 2025 operating income of $2.58 per share, beating the Zacks Consensus Estimate by 11.7%. The bottom line increased 0.49% year over year. Gross premiums written improved 15.1% year over year to $6.2 billion. Net premiums written climbed 15% year over year to $4.3 billion on higher premiums written across its Insurance and Reinsurance segments. Pre-tax net investment income increased 11.3% year over year to $405 million. The uptick was driven by growth in average invested assets, due in part to strong operating cash flows.  The Zacks Consensus Estimate was pegged at $401 million. Our estimate was $411.5 million. Operating revenues of $4.8 billion rose 20.9% year over year, driven by higher net premiums earned, net investment income and other income. It beat the Zacks Consensus Estimate by 2.62%.

Cincinnati Financial Corporation CINF reported second-quarter 2025 operating income of $1.97 per share, which surpassed the Zacks Consensus Estimate by 41.7%. The bottom line increased 52.7% year over year. Total operating revenues in the quarter under review were $2.8 billion, which improved 15.3% year over year. This improvement was driven by higher earned premiums, investment income and other revenues. However, the top line missed the consensus mark by 0.1%. Net written premiums climbed 11.1% year over year to $2.7 billion, driven by premium growth initiatives, price increases and a higher level of insured exposures, as well as contributions to growth from Cincinnati Re and Cincinnati Global. Investment income, net of expenses, increased 17.8% year over year to $285 million and our estimate of $269.6 million. It was due to an increase in interest income from fixed-maturity securities and a decrease in equity portfolio dividends. The Zacks Consensus Estimate was pegged at $279 million.

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