What's in the Cards for Everest Group This Earnings Season?

Everest Group, Ltd. EG is expected to register an improvement in its top line but a decline in its bottom line when it reports third-quarter 2025 results on Oct. 29, after the closing bell.

The Zacks Consensus Estimate for EG’s third-quarter revenues is pegged at $4.45 billion, indicating 3.8% growth from the year-ago reported figure. The consensus estimate for earnings is pegged at $13.39 per share. The Zacks Consensus Estimate for EG’s third-quarter earnings has increased 37.8% over the past 30 days. The estimate suggests a year-over-year decline of 8.4%.

What the Zacks Model Unveils for EG

Our proven model does not predict an earnings beat for Everest Group this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) that increases the odds of an earnings beat. This is not the case here, as you can see below.

Earnings ESP: Everest Group has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are both pegged at $13.39. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Everest Group, Ltd. Price and EPS Surprise

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

Zacks Rank: EG carries a Zacks Rank #3 at present.

Factors Likely to Shape EG’s Q3 Results

Premium growth is likely to have been driven by the solid performance of EG’s Reinsurance and Insurance segments. We expect the net written premium to increase 11.2% to $4.2 billion in the second quarter.

The Insurance segment is likely to have benefited from a business mix, higher retention in certain lines of business, an increase in other specialty business and accident and health business. We estimate premiums earned to increase 0.1% to $899.1 million in the to-be-reported quarter.

The Reinsurance segment is expected to have benefited from property pro rata business and property catastrophe excess of loss business. A decrease in financial lines business driven by actions taken on the North America casualty business is likely to have offset the upside. We expect premiums earned to improve 4.5% to $3.1 billion in the third quarter.

Net investment income is likely to have gained from higher assets under management, alternative assets and strong returns in private equity investments. We expect net investment income to be $490.5 million. The Zacks Consensus Estimate is pegged at $511 million.

The top line in the to-be-reported quarter is expected to have gained from higher net written premiums and net investment income. 

Rate increases, exposure growth and traditional risk management capabilities are expected to have improved underwriting profitability, leading to an increase in the combined ratio. We expect the combined ratio to be 91.8 in the to-be-reported quarter. The Zacks Consensus Estimate for the metric is pegged at 91. 

We estimate underwriting income from the Insurance segment to be $13.7 million. The same from the Reinsurance segment is expected to be $278.8 million in the to-be-reported quarter.

Total claims & expenses are likely to have increased largely owing to higher incurred losses and loss adjustment expenses, commission, brokerage, taxes and fees and other underwriting expenses. We expect the metric to rise 1.7% to $3.7 billion. 

Share buybacks in the to-be-reported quarter are anticipated to have provided a boost to the bottom line.

Stocks to Consider

Here are some other insurance stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:

The Hanover Insurance Group, Inc. THG has an Earnings ESP of +2.51% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $3.79 per share, indicating a year-over-year increase of 24.2%. 

THG’s earnings beat estimates in each of the last four quarters.

Prudential Financial, Inc. PRU has an Earnings ESP of +0.52% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for third-quarter 2025 earnings is $3.60 per share, representing an 3.4% increase from the year-ago reported figure.

PRU’s earnings beat estimates in three of the last four quarters while missing in one.

Kemper Corporation KMPR has an Earnings ESP of +5.66% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $1.33 per share, implying a decrease of 17.9% from the year-ago reported figure.

KMPR’s earnings beat estimates in three of the last four quarters while missing in one.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research