It has been about a month since the last earnings report for Everest Group (EG). Shares have added about 2.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Everest Group due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Everest Group, Ltd. before we dive into how investors and analysts have reacted as of late.
Everest Q4 Earnings Miss, Revenues Top Estimates, Premiums Down Y/Y
Everest Group reported a fourth-quarter 2025 operating income of $13.26 per share, missing the Zacks Consensus Estimate by 0.8%. The bottom line reversed the year-ago loss of $18.39.
Everest Group benefited from strong performing Reinsurance segment, along with solid core fixed-income investment returns. These positives were partially offset by weak performance in the insurance businesses, higher expenses and underwriting losses.
EG’s Q4 Operational Update
Total operating revenues of nearly $4.4 billion declined 4.6% year over year, reflecting lower premiums. The top line beat the Zacks Consensus Estimate by 2.7%.
Gross written premiums fell 8.6% year over year to $4.3 billion, as strong double-digit growth in specialty lines was offset by targeted reductions in certain casualty lines. Our estimate was $4.8 billion.
Net investment income rose 18.8% year over year to $562 million, driven by a larger asset base and strong alternative investment returns. The figure exceeded both our estimate of $330.6 million and the Zacks Consensus Estimate of $456.4 million.
Total claims and expenses declined 28.1% to $3.9 billion, primarily due to lower incurred losses and loss adjustment expenses, commissions, brokerage, taxes and fees. Our estimate was $3.5 billion.
Underwriting income totaled $60 million due to a loss at the Insurance segment, but compared favourably with an underwriting loss of $1.4 billion in the year-ago quarter.
Pre-tax catastrophe losses, net of recoveries and reinstatement premiums, were $216 million, narrower than $312 million a year ago.
The combined ratio improved 20 basis points year over year to 98.4. The Zacks Consensus Estimate was 93.3, while our estimate was 94.2.
Q4 Segmental Update of Everest Group
The Reinsurance segment generated gross written premiums of $3.2 billion, down 3.6% year over year and below our estimate of $3.3 billion. The decline reflected lower volumes in Casualty Pro-Rata and Casualty XOL, which offset growth in Property Catastrophe XOL and Financial Lines.
The segment’s combined ratio deteriorated to 91.2 from 90.4 a year ago, coming in weaker than the Zacks Consensus Estimate of 90 and our estimate of 84.4.
The Insurance segment posted gross written premiums of $1.1 billion, down 19.7% year over year. Higher premiums in Accident and Health and Other Specialty were offset by declines in Property / Short Tail, Specialty Casualty, Professional Liability and Workers' Compensation.
The combined ratio improved 12,220 basis points year over year to 117. Our estimate was 86.5, while the Zacks Consensus Estimate was 102.
EG’s Financial Update
Everest Group exited the fourth quarter of 2025 with total investments and cash of $45.4 billion, up 9.4% from the 2024-end level. Shareholders’ equity rose 11.4% year over year to $15.5 billion. Book value per share increased 10.8% year over year to $379.7 as of Dec. 31, 2025. Annualized net income return on equity improved 340 basis points year over year to 12.4%. Cash flow from operations totaled $3.1 billion for the year, down 38.1% year over year.
Capital Deployment of EG
EG paid common share dividends of $80 million, or $2 per share, during the reported quarter. It repurchased $797 million worth of shares in 2025.
EG’s Full-Year Highlights
Full-year 2025 operating income per share surged 49.3% year over year to $44.54, beating our estimate by 2.9%. Total revenues rose 1.24% year over year to $17.5 billion, roughly in line with the Zacks Consensus Estimate. Gross written premiums fell 2.9% year over year to $17.7 billion, lower than our estimate of $18.2 billion. The combined ratio improved 370 basis points year over year to 98.6. The Zacks Consensus Estimate was 97.3, while our estimate was 95.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
VGM Scores
Currently, Everest Group has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock was allocated a score of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Everest Group has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Everest Group, Ltd. (EG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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