Reinsurance Stocks Q1 Highlights: Everest Group (NYSE:EG)

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 Q1. 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 7 reinsurance stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 4.9%.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Weakest Q1: 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 $4.26 billion, up 3.1% year on year. This print fell short of analysts’ expectations by 4.2%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ net premiums earned and EPS estimates.

The stock is down 1.6% since reporting and currently trades at $339.41.

Read our full report on Everest Group here, it’s free.

Best Q1: 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 $768.8 million, up 16.7% year on year, outperforming analysts’ expectations by 28.3%. The business had an exceptional quarter with a solid beat of analysts’ EPS and net premiums earned estimates.

Hamilton Insurance Group delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 12.8% since reporting. It currently trades at $21.65.

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

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 $1.52 billion, up 6.2% year on year, falling short of analysts’ expectations by 7.6%. It was a slower quarter as it posted a significant miss of analysts’ net premiums earned and book value per share estimates.

AXIS Capital delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 1.4% since the results and currently trades at $102.81.

Read our full analysis of AXIS Capital’s results here.

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 $3.47 billion, up 33.5% year on year. This number surpassed analysts’ expectations by 14.4%. More broadly, it was a mixed quarter as it also recorded an impressive beat of analysts’ net premiums earned estimates but a significant miss of analysts’ EPS estimates.

RenaissanceRe delivered the fastest revenue growth among its peers. The stock is down 2.2% since reporting and currently trades at $241.61.

Read our full, actionable report on RenaissanceRe here, it’s free.

Reinsurance Group of America (NYSE:RGA)

Operating behind the scenes of the insurance industry since 1973, Reinsurance Group of America (NYSE:RGA) provides life and health reinsurance services to insurance companies, helping them manage risk and meet regulatory requirements.

Reinsurance Group of America reported revenues of $5.34 billion, down 17.5% year on year. This print lagged analysts' expectations by 2.9%. Taking a step back, it was a mixed quarter as it also produced an impressive beat of analysts’ book value per share estimates but a significant miss of analysts’ net premiums earned estimates.

Reinsurance Group of America had the slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $198.74.

Read our full, actionable report on Reinsurance Group of America here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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