EG Q3 Earnings & Revenues Miss Estimates on Poor Underwriting Show

Everest Group, Ltd.’s EG third-quarter 2025 operating income of $7.54 per share missed the Zacks Consensus Estimate by 43.7%. Also, the bottom line decreased 48.4% year over year. 

The company witnessed declining premiums, underwriting loss and higher expenses, offset by narrower catastrophe losses and improved net investment income.

EG’s Q3 Operational Update

Everest Group’s total operating revenues of $4.3 billion climbed 0.7% year over year on higher net investment income. The top line, however, missed the consensus mark by 2.9%.

Gross written premiums declined 1.1% year over year to $4.4 billion. Premium growth in property and specialty lines across both the Reinsurance and Insurance segments was offset by reductions in certain casualty lines. Our estimate was $4.8 billion.

Net investment income was $540 million, which increased 8.8% year over year. The upside was driven by a larger asset base and strong alternative investment returns. Our estimate was $490.5 million. The Zacks Consensus Estimate was pegged at $511 million.

Total claims and expenses rose 9.2% to $4 billion, primarily due to higher incurred losses and loss adjustment expenses, commission, brokerage, taxes and fees, other underwriting expenses, and corporate expenses. Our estimate was $3.8 billion.

Underwriting loss of $130 million was against the year-ago quarter’s underwriting income of $272 million.

Pre-tax catastrophe losses net of recoveries and reinstatement premiums were $50 million, narrower than the loss of $279 million in the year-ago quarter.

The combined ratio deteriorated 1030 basis points (bps) year over year to 103.4 in the reported quarter. The Zacks Consensus Estimate was 93, while our estimate was 91.8.

Q3 Segmental Update of Everest Group

The Reinsurance segment’s gross written premiums were $3.2 billion, down 1.8% year over year. The metric reflected a 10.2% increase in Property Catastrophe XOL and a 24.3% increase in Property Non-Catastrophe XOL. It was partially offset by a 16.3% decrease in Casualty Pro-Rata and a 10.2% decrease in Casualty XOL when adjusting for reinstatement premiums. Our estimate was $3.6 billion.

The combined ratio of the Reinsurance segment improved 480 bps to 87. The Zacks Consensus Estimate was 90. Our estimate was 91.

The Insurance segment generated gross written premiums of $1.1 billion, up 3.3% year over year. The metric grew by 46.4% in Accident and Health and 15.8% in Other Specialty. Growth was partially offset by decreases of 15.8% in Specialty Casualty, primarily reflecting the execution of 1-Renewal Strategy focused on U.S. casualty lines, as well as 13.6% in Workers' Compensation. Our estimate was $1.2 billion.

The combined ratio deteriorated 4120 bps to 138.1 for the Insurance segment. Our estimate was 98.5. The Zacks Consensus Estimate was pegged at 102.

Financial Update

Everest Group exited the third quarter of 2025 with total investments and cash of $45.8 billion, up 10.3% from the 2024-end level.

Shareholder equity at the end of the reported quarter increased 10.8% from the figure at the end of 2024 to $15.4 billion. Book value per share was $366.22 as of Sept. 30, 2025, up 13.4% from the 2024-end level.

The annualized net income return on equity was 8.2%, which contracted 820 bps from the year-ago quarter.

Everest Group’s cash flow from operations was $1.5 billion in the quarter, down 16% year over year. The company paid common share dividends of $83.7 million during the quarter.

EG’s 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

Principal Financial Group, Inc.’s PFG third-quarter 2025 operating net income of $2.10 per share missed the Zacks Consensus Estimate by 3.6%. However, the bottom line increased 19% year over year. PFG’s operating revenues increased 6.2% year over year to $3.8 billion, driven by increased premiums and other considerations, fees, and other revenues and net investment income. The metric missed the Zacks Consensus Estimate by 4.1%.

Total expenses increased 3.8% year over year to $3.4 billion. The figure was lower than our estimate of $3.6 billion. As of Sept. 30, 2025, Principal Financial’s AUM amounted to $784.3 billion, which included $0.4 billion of net cash flow and assets under administration of $1.8 trillion. AUM improved 10.1% from 2024-end.

Chubb Limited CB reported third-quarter 2025 core operating income of $7.49 per share, which beat the Zacks Consensus Estimate by 26%. The bottom line increased 30.9% year over year. CB’s net premiums written improved 7.5% year over year to $14.8 billion in the quarter. Our estimate was $14.4 billion, while the Zacks Consensus Estimate was pegged at $14.5 billion.

Pre-tax net investment income was $1.65 billion, up 9.3% year over year. Our estimate and the Zacks Consensus Estimate were both pegged at $1.8 billion. Chubb’s revenues of $16.1 billion beat the consensus estimate by 1.6% and improved 7.4% year over year. Property and casualty (P&C) underwriting income was $2.2 billion, up 55% year over year. The Zacks Consensus Estimate was pegged at $1.4 billion.

The Travelers Companies, Inc. TRV reported third-quarter 2025 core income of $8.14 per share, which beat the Zacks Consensus Estimate by 35.4%. The bottom line increased 55% year over year. Travelers’ total revenues increased 5% from the year-ago quarter to $12.44 billion, primarily driven by higher premiums, net investment income, fee income and other revenues. The top-line figure beat the Zacks Consensus Estimate by 0.7%.

TRV’s net written premiums increased 1% year over year to a record $11.47 billion. The underwriting gain doubled year over year to $1.4 billion. The consolidated underlying combined ratio of 83.9 improved 170 bps year over year. The combined ratio improved 590 bps year over year to 87.3.

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