Q3 Earnings Highs And Lows: Everest Group (NYSE:EG) Vs The Rest Of The Reinsurance Stocks

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at reinsurance stocks, starting with Everest Group (NYSE:EG).

This is a cyclical industry, and the sector benefits when there is 'hard market', characterized by strong premium rate increases that outpace loss and cost inflation, resulting in robust underwriting margins. The opposite is true in a 'soft market'. Interest rates also matter, as they determine the yields earned on fixed-income portfolios. The primary headwind remains the immense and concentrated exposure to large-scale catastrophe losses, as the growing impact of climate change challenges traditional risk models and creates significant earnings volatility. Additionally, they face the risk of adverse prior-year reserve development, where claims prove more costly than anticipated, while the eventual influx of new capital from alternative sources threatens to soften the market and compress future returns.

The 6 reinsurance stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.5%.

Luckily, reinsurance stocks have performed well with share prices up 12.3% on average since the latest earnings results.

Weakest Q3: Everest Group (NYSE:EG)

Rebranded from Everest Re in 2023 to reflect its evolution beyond just reinsurance, Everest Group (NYSE:EG) underwrites property and casualty reinsurance and insurance worldwide, serving insurance companies, corporations, and other clients across six continents.

Everest Group reported revenues of $4.32 billion, flat year on year. This print fell short of analysts’ expectations by 2.5%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ net premiums earned and EPS estimates.

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $341.26.

Read our full report on Everest Group here, it’s free for active Edge members.

Best Q3: Hamilton Insurance Group (NYSE:HG)

Founded in 2013 and operating through three distinct underwriting platforms across four countries, Hamilton Insurance Group (NYSE:HG) operates global specialty insurance and reinsurance platforms across Lloyd's, Ireland, Bermuda, and the United States.

Hamilton Insurance Group reported revenues of $667.7 million, up 30.2% year on year, outperforming analysts’ expectations by 10.3%. The business had an incredible quarter with a beat of analysts’ EPS and revenue estimates.

Hamilton Insurance Group delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 18.2% since reporting. It currently trades at $27.88.

Is now the time to buy Hamilton Insurance Group? Access our full analysis of the earnings results here, it’s free for active Edge members.

Fidelis Insurance (NYSE:FIHL)

Founded in Bermuda in 2014 and designed to adapt nimbly to evolving market conditions, Fidelis Insurance (NYSE:FIHL) is a global specialty insurer and reinsurer that provides customized coverage across property, specialty, and bespoke risk solutions.

Fidelis Insurance reported revenues of $651.9 million, down 5% year on year, falling short of analysts’ expectations by 11.1%. It was a softer quarter as it posted a significant miss of analysts’ revenue and net premiums earned estimates.

Fidelis Insurance delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 2.5% since the results and currently trades at $19.63.

Read our full analysis of Fidelis Insurance’s results here.

AXIS Capital (NYSE:AXS)

Founded in the aftermath of the 9/11 attacks when insurance capacity was scarce, AXIS Capital Holdings Limited (NYSE:AXS) is a global specialty insurer and reinsurer that provides coverage for complex risks across property, liability, professional lines, cyber, and other specialty markets.

AXIS Capital reported revenues of $1.64 billion, up 4.1% year on year. This number was in line with analysts’ expectations. Overall, it was a strong quarter as it also put up a beat of analysts’ EPS estimates and a solid beat of analysts’ book value per share estimates.

The stock is up 23.1% since reporting and currently trades at $108.67.

Read our full, actionable report on AXIS Capital here, it’s free for active Edge members.

RenaissanceRe (NYSE:RNR)

Born in Bermuda after the devastating Hurricane Andrew created a crisis in the catastrophe insurance market, RenaissanceRe (NYSE:RNR) provides property, casualty, and specialty reinsurance and insurance solutions to customers worldwide, primarily through intermediaries.

RenaissanceRe reported revenues of $3.20 billion, down 19.5% year on year. This print beat analysts’ expectations by 9.7%. It was a stunning quarter as it also logged a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

RenaissanceRe had the slowest revenue growth among its peers. The stock is up 22.5% since reporting and currently trades at $283.68.

Read our full, actionable report on RenaissanceRe here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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