Annualized 16.8% Net Income ROE and 16.7% Net Operating Income ROE
$316 million of Underwriting Income and Combined Ratio of 91.2%
Repurchased $331 million of Common Shares During the Quarter
HAMILTON, Bermuda--(BUSINESS WIRE)--April 29, 2026--
Everest Group, Ltd. (NYSE: EG), a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions, today reported its first quarter 2026 results.
First Quarter 2026 Highlights
-- Net income of $653 million, equal to $16.21 per diluted share versus
first quarter 2025 net income of $210 million, equal to $4.90 per diluted
share
-- Net operating income of $648 million, equal to $16.08 per diluted share
versus first quarter 2025 net operating income of $276 million, equal to
$6.45 per diluted share
-- Total Shareholder Return of 16.1% annualized1; Annualized 16.8% Net
Income ROE and 16.7% Net Operating Income ROE
-- $3.6 billion in gross written premium, a year-over-year decrease of
18.5% for the Group, a decrease of 8.5% for Reinsurance Treaty, and an
increase of 1.6% for Global Wholesale & Specialty on a comparable basis;
a decrease of 6.4% when excluding Legacy segment
-- Combined ratios of 91.2% for the Group, 87.2% for Reinsurance Treaty
and 96.8% for Global Wholesale & Specialty
-- Attritional combined ratios of 88.5% for the Group, 85.0% for
Reinsurance Treaty, and 92.6% for Global Wholesale & Specialty
-- Net favorable development of approximately $33 million in prior year
loss reserves, resulting in a 0.9-point decrease on the combined ratio
for the Group, driven by short tail lines.
-- Pre-tax underwriting income (loss) of $316 million for the Group, $315
million for Reinsurance Treaty, $23 million for Global Wholesale &
Specialty, and ($22) million for Legacy
-- $130 million of pre-tax catastrophe losses net of recoveries and
reinstatement premiums for the Group versus $472 million in Q1 2025.
Reinstatement premiums were $0 in Q1 2026 and $62 million in the prior
year first quarter.
-- Net investment income increased to $567 million versus $491 million in
the prior year quarter, driven by strong alternative investment returns.
-- Operating cashflow for the quarter of $649 million versus $928 million
in Q1 2025
(1) Denotes annualized figure; represents Total Shareholder Return or "TSR".
Annualized TSR is calculated as year to date growth in book value per common
share outstanding excluding URA$(D)$ on fixed maturity, available for sale
securities plus year-to-date dividends per share.
"Everest delivered a strong start to the year as the strategy we implemented to improve our return profile and capital efficiency is becoming evident in our results. Solid contributions from underwriting and investment income drove an annualized operating ROE of 16.7% and supported accelerated share repurchases," said Jim Williamson, Everest President and CEO. "Our new structure provides greater clarity on the earnings power across Everest. The Reinsurance Treaty team continues to operate with a relentless focus on bottom-line results, with strong and disciplined execution of the January and April first renewals. Our Global Wholesale & Specialty team continues to tactically improve the quality of the portfolio and expand in markets where we have durable competitive advantages, which we believe positions the business for increased profitability. As we look forward through 2026, we are focused on executing against our strategy, centered around underwriting discipline and accelerating capital return."
Summary of First Quarter 2026 Net Income and Other Items
-- Net income of $653 million, equal to $16.21 per diluted share, versus
first quarter 2025 net income of $210 million, equal to $4.90 per diluted
share
-- Net operating income of $648 million, equal to $16.08 per diluted share,
versus first quarter 2025 net operating income of $276 million, equal to
$6.45 per diluted share
-- Everest recognized a net pre-tax expense of $81.0 million included in
other income (expense) primarily associated with the sale of the renewal
rights to the Commercial Retail Insurance business in certain geographic
regions to AIG.
-- Operating income tax rate of 11.7% versus first quarter 2025 operating
income tax rate of 16.1%. The operating income tax rate in the first
quarter 2026 benefited the takedown of an accrual of UK Pillar II tax due
to the UK updating its tax laws in 1Q to conform with the most recent
OECD guidance.
The following table summarizes the Company's Net Income and related financial metrics.
Net income and operating Q1 Year to Date Q1 Year to Date
income 2026 2026 2025 2025
All values in USD millions
except for per share amounts
and percentages
Everest Group
----------------------------
Net income (loss) 653 653 210 210
Net operating income (loss)
(2) 648 648 276 276
Net income (loss) per
diluted common share 16.21 16.21 4.90 4.90
Net operating income (loss)
per diluted common share
(2) 16.08 16.08 6.45 6.45
Net income (loss) return on
average equity
(annualized) 16.8% 16.8% 5.7% 5.7%
After-tax net operating
income (loss) return on
average equity (annualized)
(2) 16.7% 16.7% 7.5% 7.5%
Notes
(2) Denotes non-GAAP financial measure. See "Comments on Non-GAAP
Financial Measures" for an explanation and reconciliation.
Shareholders' Equity and Q1 Year to Date Q1 Year to Date
Book Value per Share 2026 2026 2025 2025
All values in USD millions
except for per share
amounts and percentages
Beginning shareholders'
equity 15,461 15,461 13,875 13,875
Net income (loss) 653 653 210 210
Change - URA(D) of fixed
maturity, available for
sale securities (374) (374) 289 289
Dividends to shareholders (80) (80) (85) (85)
Purchase of treasury
shares (331) (331) (200) (200)
Other (38) (38) 51 51
Ending shareholders'
equity 15,291 15,291 14,140 14,140
Common shares outstanding 39.8 42.5
Book value per common
share outstanding 383.75 332.39
Less: URA(D) of fixed
maturity, available for
sale securities (9.27) (13.18)
Book value per common
share outstanding
excluding URA(D) (3) 393.02 345.57
Change in BVPS adjusted
for dividends 1.6 % 3.5 %
Total Shareholder Return
("TSR") - Annualized 16.1 % 5.6 %
Common share dividends
paid - last 12 months 8.00 8.00
Notes
(3) Denotes non-GAAP financial measure. A reconciliation to book value
per share, the most comparable GAAP measure, is included in the table
above. See "Comments on Non-GAAP Financial Measures" for additional
information.
The following information summarizes the Company's underwriting results, on a consolidated basis and by segment -- Reinsurance Treaty, Global Wholesale & Specialty, and Legacy, with selected commentary on results by segment.
Underwriting Year to Year to
information - Q1 Date Q1 Date Year on Year
Everest Group 2026 2026 2025 2025 Change
All values in USD
millions except Year to
for percentages Q1 Date
Gross written
premium 3,602 3,602 4,391 4,391 (18.0) % (18.0) %
Net written
premium 3,186 3,186 3,735 3,735 (14.7) % (14.7) %
Loss Ratio:
(2.0) (2.0)
Current year 59.3 % 59.3 % 61.3 % 61.3 % pts pts
(0.9) (0.9)
Prior year (0.9) % (0.9) % -- % -- % pts pts
(10.3) (10.3)
Catastrophe 3.6 % 3.6 % 13.9 % 13.9 % pts pts
------- ------- ------- ------- -------- --------
(13.1) (13.1)
Total Loss ratio 62.0 % 62.0 % 75.1 % 75.1 % pts pts
Commission and
brokerage ratio 23.1 % 23.1 % 21.4 % 21.4 % 1.7 pts 1.7 pts
Other underwriting (0.1) (0.1)
expenses 6.0 % 6.0 % 6.2 % 6.2 % pts pts
------- ------- ------- ------- -------- --------
(11.6) (11.6)
Combined ratio 91.2 % 91.2 % 102.7 % 102.7 % pts pts
Attritional
combined ratio (1.7) (1.7)
(4) 88.5 % 88.5 % 90.2 % 90.2 % pts pts
Pre-tax net
catastrophe
losses (5) 130 130 472 472
Pre-tax net
unfavorable
(favorable) prior
year reserve
development (33) (33) -- --
Notes
(4) Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, prior year development, and COVID-19 losses. Attritional combined ratio is a non-GAAP financial measure. See "Comments on Non-GAAP Financial Measures" for an explanation and reconciliation. (5) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums.
Reinsurance Treaty Segment -- Quarterly Highlights
-- Gross written premiums decreased 8.5% versus the prior year quarter on
a comparable basis (constant dollar basis and excluding reinstatement
premiums)2, to approximately $2.7 billion.
-- Growth was primarily led by a 9.4% increase in Property Catastrophe XOL
and a 1.0% increase in Property Pro-Rata, partially offset by decreases
of 25.0% in Property Non-Catastrophe XOL, 23.9% in Casualty Pro-Rata, and
13.3% in Casualty XOL, when adjusting for reinstatement premiums.
-- Attritional loss ratio improved 270 basis points over first quarter
2025 to 56.7%, while the attritional combined ratio improved 210 basis
points to 85.0% versus a year ago. The Washington, D.C. aviation losses,
net of recoveries and reinstatement premiums, contributed 2.7 points to
the first quarter 2025 attritional loss ratio and 2.5 points to the
attritional combined ratio.4
-- Net favorable prior year development was $33 million, driven by
well-seasoned property reserves
-- Pre-tax catastrophe losses were $90 million net of estimated recoveries
and reinstatement premiums, driven primarily by losses associated with
the Iran War and a number of mid-sized events globally. Pre-tax
catastrophe losses were $447 million net of estimated recoveries and
reinstatement premiums in the prior-year quarter, driven primarily by the
California Wildfires.
Underwriting
information - Year to Year to
Reinsurance Treaty Q1 Date Q1 Date Year on Year
segment 2026 2026 2025 2025 Change
All values in USD
millions except Year to
for percentages Q1 Date
Gross written
premium 2,674 2,674 2,935 2,935 (8.9) % (8.9) %
Net written
premium 2,405 2,405 2,528 2,528 (4.9) % (4.9) %
Loss Ratio:
(1.3) (1.3)
Current year 56.7 % 56.7 % 58.0 % 58.0 % pts pts
(1.4) (1.4)
Prior year (1.4) % (1.4) % -- % -- % pts pts
(16.0) (16.0)
Catastrophe 3.7 % 3.7 % 19.7 % 19.7 % pts pts
------- ------- ------- ------- ------- -------
(18.7) (18.7)
Total Loss ratio 59.0 % 59.0 % 77.7 % 77.7 % pts pts
Commission and
brokerage ratio 25.7 % 25.7 % 24.7 % 24.7 % 1.0 pts 1.0 pts
Other underwriting
expenses 2.5 % 2.5 % 2.3 % 2.3 % 0.2 pts 0.2 pts
------- ------- ------- ------- ------- -------
(17.5) (17.5)
Combined ratio 87.2 % 87.2 % 104.7 % 104.7 % pts pts
Attritional
combined ratio (2.1) (2.1)
(4) 85.0 % 85.0 % 87.1 % 87.1 % pts pts
Pre-tax net
catastrophe
losses (5) 90 90 447 447
Pre-tax net prior
year reserve
development (33) (33) -- --
Notes
(2) Denotes non-GAAP financial measure. See "Comments on Non-GAAP
Financial Measures" for an explanation and reconciliation.
(4) Attritional ratios exclude catastrophe losses, net CAT reinstatement
premiums earned, prior year development, and COVID-19 losses.
Attritional combined ratio is a non-GAAP financial measure. See
"Comments on Non-GAAP Financial Measures" for an explanation and
reconciliation.
(5) Pre-tax net catastrophe losses are net of reinsurance and
reinstatement premiums.
Global Wholesale & Specialty Segment -- Quarterly Highlights
-- Gross written premiums increased 1.6% on a comparable basis (constant
dollar basis and excluding reinstatement premiums)2, to approximately
$793 million as we continued to improve the mix and quality of the
portfolio.
-- Growth was led by increases of 32.9% in Other Specialty and 23.8% in
Accident and Health. Growth was partially offset by decreases of 26.7% in
Workers' Compensation, 9.3% in Property / Short Tail, and 6.1% in
Specialty Casualty.
-- Attritional loss ratio improved 380 basis points over first quarter
2025 to 58.9%, while the attritional combined ratio increased 10 basis
points to 92.6% versus a year ago.4
-- Total expense ratio increased 390 basis points to 33.8% due to mix and
reduced casualty earned premium.
-- Pre-tax catastrophe losses were $30 million, net of estimated
recoveries and reinstatement premiums, an increase versus the prior year
quarter.
Underwriting Year
information - to Year to
Global Wholesale & Q1 Date Q1 Date Year on Year
Specialty segment 2026 2026 2025 2025 Change
All values in USD Year
millions except to
for percentages Q1 Date
Gross written
premium 793 793 770 770 2.9 % 2.9 %
Net written
premium 692 692 655 655 5.6 % 5.6 %
Loss Ratio:
(4.1) (4.1)
Current year 58.9 % 58.9 % 63.0 % 63.0 % pts pts
0.3 0.3
Prior year -- % -- % (0.3) % (0.3) % pts pts
1.1 1.1
Catastrophe 4.2 % 4.2 % 3.1 % 3.1 % pts pts
------ ------ ------- ------- ------ ------
(2.8) (2.8)
Total Loss ratio 63.0 % 63.0 % 65.8 % 65.8 % pts pts
Commission and 1.6 1.6
brokerage ratio 21.2 % 21.2 % 19.6 % 19.6 % pts pts
Other underwriting 2.3 2.3
expenses 12.6 % 12.6 % 10.3 % 10.3 % pts pts
------ ------ ------- ------- ------ ------
1.1 1.1
Combined ratio 96.8 % 96.8 % 95.7 % 95.7 % pts pts
Attritional
combined ratio 0.1 0.1
(4) 92.6 % 92.6 % 92.5 % 92.5 % pts pts
Pre-tax net
catastrophe
losses (5) 30 30 23 23
Pre-tax net prior
year reserve
development -- -- (2) (2)
Notes
(2) Denotes non-GAAP financial measure. See "Comments on Non-GAAP
Financial Measures" for an explanation and reconciliation.
(4) Attritional ratios exclude catastrophe losses, net CAT
reinstatement premiums earned, prior year development, and COVID-19
losses. Attritional combined ratio is a non-GAAP financial measure.
See "Comments on Non-GAAP Financial Measures" for an explanation and
reconciliation.
(5) Pre-tax net catastrophe losses are net of reinsurance and
reinstatement premiums.
Legacy Segment
-- Our Legacy segment now encompasses our commercial retail insurance
business following the announcement of the commercial retail insurance
renewal rights transaction.
-- Gross written premiums reflect a limited number of renewed and new
policies written on the Company's paper related to the commercial retail
insurance business and by the purchaser of the sports and leisure
business, for a finite period post-closing.
-- Net premiums earned in the quarter were largely driven by the
commercial retail insurance business, which we expect to diminish to a
small amount by year-end.
Underwriting
information - Year to Date Year to Date
Legacy segment Q1 2026 2026 Q1 2025 2025
All values in USD
millions except for
percentages
Gross written
premium 135 135 686 686
Net written premium 89 89 552 552
Net premiums earned 399 399 540 540
Incurred losses and
LAE
Current year 306 306 402 402
Prior year -- -- 2 2
Catastrophes 10 10 3 3
------- --------------- ------- ----------------
Total incurred
losses and LAE 316 316 407 407
Commission,
brokerage, taxes
and fees 41 41 44 44
Other underwriting
expenses 65 65 103 103
------- --------------- ------- ----------------
Underwriting income
(loss) (2) (22) (22) (14) (14)
======= =============== ======= ================
Notes
(2) Denotes non-GAAP financial measure. See "Comments on Non-GAAP
Financial Measures" for an explanation and reconciliation.
Investments and Shareholders' Equity as of March 31, 2026
-- Total invested assets and cash of $45.0 billion versus $45.4 billion on
December 31, 2025
-- Shareholders' equity of $15.3 billion vs. $15.5 billion on December 31,
2025, including $369 million of unrealized net losses on fixed maturity,
available for sale securities
-- Shareholders' equity excluding unrealized gains (losses) on fixed
maturity, available for sale securities of $15.7 billion versus $15.5
billion on December 31, 2025
-- Book value per share of $383.75 versus $379.83 at December 31, 2025
-- Book value per share excluding unrealized gains (losses) on fixed
maturity, available for sale securities of $393.02 versus $379.70 at
December 31, 2025
-- Common share repurchases of $331 million during the quarter,
representing 1,002,516 shares at an average price of $330.01.
-- Dividends of $2.00 per common share declared and paid in the quarter
equaling $80.0 million
This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. Forward-looking statements reflect management's current expectations based on assumptions we believe are reasonable but are not guarantees of performance. Actual results may differ materially from those contained in forward-looking statements made on behalf of the Company. Forward-looking statements involve risks and uncertainties that include, but are not limited to, the impact of general economic conditions and conditions affecting the insurance and reinsurance industry, the adequacy of our reserves, our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, our ability to execute divestitures, obtain regulatory approvals and effectuate strategic transactions, including the sale of our retail commercial insurance business, investment market and investment income fluctuations, trends in insured and paid losses, catastrophes, pandemics, regulatory and legal uncertainties, expenses related to divestitures and other factors described in our SEC filings, including but not limited to our latest Annual Report on Form 10-K. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About Everest
Everest Group, Ltd. (Everest) is a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions that address customers' most pressing challenges. Known for a 50-year track record of disciplined underwriting, capital and risk management, Everest, through its global operating affiliates, is committed to underwriting opportunity for colleagues, customers, shareholders, and communities worldwide.
Everest common stock (NYSE: EG) is a component of the S&P 500 index.
Additional information about Everest, our people, and our products can be found on our website at www.everestglobal.com.
A conference call discussing the results will be held at 8:00 a.m. Eastern Time on Thursday April 30, 2026. The call will be available on the Internet through the Company's website at https://investors.everestglobal.com/overview.
Recipients are encouraged to visit the Company's website to view supplemental financial information on the Company's results. The supplemental information is located at www.everestglobal.com in the "Investors/Financials/Quarterly Results" section of the website. The supplemental financial information may also be obtained by contacting the Company directly.
______________________________
Comments on Non-GAAP Financial Measures
In this Press Release, the Company has included certain non-GAAP financial measures, including after-tax net operating income (loss), after-tax net operating income (loss) per diluted share, attritional combined ratio, gross written premiums presented on a comparable basis, net operating income return on equity ("ROE"), underwriting income, and book value per common share outstanding excluding net unrealized appreciation (depreciation) on fixed maturity, available for sale securities ("URA(D)"). The Company presents these non-GAAP financial measures to facilitate a deeper understanding of the profitability drivers of our business, results of operations, financial condition and liquidity. The Company believes that such measures are important to investors and other interested persons, and that these measures are a useful supplement to GAAP information concerning the Company's performance. These measures may not, however, be comparable to similarly titled measures used by companies within or outside of the insurance industry. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, or superior to, the Company's financial measures prepared in accordance with generally accepted accounting principles ("GAAP").
A reconciliation of the non-GAAP financial measures to the most comparable corresponding GAAP financial measures is included below.
After-tax net operating income (loss) and after-tax net operating income (loss) per diluted share
After-tax net operating income (loss) (also referred to in this release as net operating income) consists of net income (loss) excluding after-tax net gains (losses) on investments and after-tax net foreign exchange income (expense), as shown below:
Three Months Ended March 31, Three Months Ended March 31,
------------------------------------------ ------------------------------------------
(Dollars in millions,
except per share
amounts) 2026 2025 2026 2025
-------------------- -------------------- -------------------- --------------------
(unaudited) (unaudited)
Per Per Per Per
Diluted Diluted Diluted Diluted
Amount Share Amount Share Amount Share Amount Share
-------- ---------- -------- ---------- -------- ---------- -------- ----------
After-tax net
operating income
(loss) $648 $16.08 $ 276 $ 6.45 $648 $16.08 $ 276 $ 6.45
After-tax net gains
(losses) on
investments (6) (0.16) (6) (0.14) (6) (0.16) (6) (0.14)
After-tax net foreign
exchange income
(expense) 12 0.29 (60) (1.41) 12 0.29 (60) (1.41)
--- ----- --- ----- --- ----- --- -----
Net income (loss) $653 $16.21 $ 210 $ 4.90 $653 $16.21 $ 210 $ 4.90
--- ----- --- ----- --- ----- --- -----
(Some amounts may not reconcile due to rounding.)
Although net gains (losses) on investments and net foreign exchange income (expense) are an integral part of the Company's insurance operations, the determination of net gains (losses) on investments and foreign exchange income (expense) is independent of the insurance underwriting process. The Company believes that the level of net gains (losses) on investments and net foreign exchange income (expense) for any particular period are not indicative of the performance of the underlying business in that particular period. Providing only a GAAP presentation of net income (loss) makes it more difficult for users of the financial information to evaluate the Company's success or failure in its basic business and may lead to incorrect or misleading assumptions and conclusions. The Company understands that the equity analysts who follow the Company focus on after-tax net operating income (loss) in their analyses for the reasons discussed above. The Company provides after-tax net operating income (loss) to investors so that they have what management believes to be a useful supplement to GAAP information concerning the Company's performance.
Attritional Loss Ratio and Attritional Combined Ratio
The loss ratio is calculated as the sum of total incurred losses and loss adjustment expenses, divided by net premiums earned. The combined ratio is calculated as the sum of total incurred losses and loss adjustment expenses, commission and brokerage expenses, and other underwriting expenses, divided by net premiums earned. The attritional loss ratio and attritional combined ratio are defined as the loss ratio and the combined ratio, respectively, adjusted to exclude catastrophe losses, net catastrophe reinstatement premiums, prior year development, and COVID-19 losses. The Company believes the attritional ratios are useful to management and investors because the adjusted ratios provide for better comparability and more accurately measure the Company's underlying underwriting performance. The following tables are a reconciliation of the loss ratio and attritional loss ratio, and the combined ratio and attritional combined ratio for the periods noted:
Three Months Ended March 31,
-----------------------------------------------------------------------------------
2026 2025
---------------------------------------- -----------------------------------------
(unaudited)
Global Global
Reinsurance Wholesale & Reinsurance Wholesale &
Treaty Specialty Group Treaty Specialty Group
------------- --------------- -------- ------------- --------------- ---------
Loss ratio 59.0% 63.0% 62.0% 77.7% 65.8% 75.1%
Adjustment for
catastrophe
losses (3.7)% (4.2)% (3.6)% (19.7)% (3.1)% (13.9)%
Adjustment for
reinstatement
premiums --% --% --% 1.4% --% 1.0%
Adjustment for
prior year
development
(6) 1.4% --% 0.9% --% 0.3% --%
Adjustment for
other items 0.1% --% 0.1% --% (0.2)% --%
----- ----- ---- -------- ---- ------ ---- ---- ------- -----
Attritional loss
ratio 56.7% 58.9% 59.4% 59.4% 62.7% 62.2%
----- ----- ---- -------- ---- ------ ---- ---- -------- -----
(Some amounts may not reconcile due to rounding.)
Three Months Ended March 31,
---------------------------------------------------------------------------
2026 2025
-------------------------- ---- -------------------------- -----
(unaudited)
Global Global
Reinsurance Wholesale & Reinsurance Wholesale &
Treaty Specialty Group Treaty Specialty Group
------------- ----------- -------- ------------- ----------- ---------
Combined ratio 87.2% 96.8% 91.2% 104.7% 95.7% 102.7%
Adjustment for
catastrophe
losses (3.7)% (4.2)% (3.6)% (19.7)% (3.1)% (13.9)%
Adjustment for
reinstatement
premiums --% --% --% 2.1% --% 1.5%
Adjustment for
prior year
development
(6) 1.4% --% 0.9% --% 0.3% --%
Adjustment for
other items 0.1% --% 0.1% --% (0.4)% (0.1)%
----- ----- ----- --- ---- ------ ---- ----- -----
Attritional
combined ratio 85.0% 92.6% 88.5% 87.1% 92.5% 90.2%
Adjustment for
profit
commission --% --% --% --% --% --%
----- ----- ----- --- ---- ------ ---- ----- --- -----
Attritional
combined ratio
excluding
profit
commission 85.0% 92.6% 88.5% 87.1% 92.5% 90.2%
(Some amounts may not reconcile due to rounding.)
Gross Written Premium on a Comparable Basis
The Company has included in this Press Release certain changes in gross written premium on a comparable basis, reflecting constant currency basis and excluding reinstatement premiums. Constant currency basis excludes the impact of foreign exchange rates. The Company provides change in gross written premium on a comparable basis to investors so that they have what management believes to be a useful supplement to GAAP information concerning the Company's performance. The following tables are a reconciliation of gross written premium and period-over-period changes on a GAAP basis to the non-GAAP comparable basis for the periods noted:
Quarter-to-Date
--------------------------------------------------
(Dollars in millions) March 31, 2026 March 31, 2025 Change
---------------- -------------------- ----------
(unaudited)
Gross Written Gross Written
Premium Premium % Impact
---------------- -------------------- ----------
Group $ 3,602 $ 4,391 (18.0)%
Adjustment for gross
CAT reinstatement
premiums -- (95) 1.8%
Adjustment for foreign
exchange effect -- 124 (2.4)%
---- ---------- --- ---------- --- ------
Group (comparable
basis) $ 3,602 $ 4,421 (18.5)%
---- ---------- --- ---------- --- ------
Reinsurance Treaty $ 2,674 $ 2,935 (8.9)%
Adjustment for gross
CAT reinstatement
premiums -- (95) 3.0%
Adjustment for foreign
exchange effect -- 83 (2.7)%
---- ---------- --- ---------- --- ------
Reinsurance Treaty
(comparable basis) $ 2,674 $ 2,923 (8.5)%
---- ---------- --- ---------- --- ------
Global Wholesale &
Specialty $ 793 $ 770 2.9%
Adjustment for gross
CAT reinstatement
premiums -- -- --%
Adjustment for foreign
exchange effect -- 10 (1.3)%
---- ---------- --- ---------- --- ------
Global Wholesale &
Specialty (comparable
basis) $ 793 $ 780 1.6%
---- ---------- --- ---------- --- ------
Legacy $ 135 $ 686 (80.3)%
Adjustment for gross
CAT reinstatement
premiums -- -- --%
Adjustment for foreign
exchange effect -- 31 (0.9)%
---- ---------- --- ---------- --- ------
Legacy (comparable
basis) $ 135 $ 718 (81.1)%
---- ---------- --- ---------- --- ------
(Some amounts may not
reconcile due to
rounding.)
Net Operating Income Return On Equity ("ROE")
Net Operating Income ROE (also referred to as operating ROE) is calculated by dividing after-tax net operating income (loss) by average shareholders' equity, adjusted for average net unrealized depreciation (appreciation) of fixed maturity, available for sale securities. A reconciliation of net income, the most comparable GAAP measure, to net operating income is presented above. The Company believes net operating income ROE is a useful measure for management and investors as it allows for better comparability and removes variability when assessing the results of operations. A reconciliation of Net Operating Income ROE and Net Income ROE is shown below.
Quarter-to-Date Year-to-Date
------------------------ ------------------------
March 31, March 31, March 31, March 31,
(Dollars in millions) 2026 2025 2026 2025
------ ------ ------ ------
(unaudited) (unaudited)
Beginning of period
shareholders' equity $15,461 $13,875 $15,461 $13,875
Add: Net unrealized
depreciation
(appreciation) of
fixed maturity,
available for sale
securities (5) 849 (5) 849
------ ------ ------ ------
Adjusted beginning of
period shareholders'
equity $15,455 $14,724 $15,455 $14,724
------ ------ ------ ------
End of period
shareholders' equity $15,291 $14,140 $15,291 $14,140
Add: Net unrealized
depreciation
(appreciation) of
fixed maturity,
available for sale
securities 369 561 369 561
------ ------ ------ ------
Adjusted end of period
shareholders' equity $15,660 $14,700 $15,660 $14,700
------ ------ ------ ------
Average adjusted
shareholders' equity $15,558 $14,712 $15,558 $14,712
After-tax net
operating income
(loss) $ 648 $ 276 $ 648 $ 276
After-tax net gains
(losses) on
investments (6) (6) (6) (6)
After-tax foreign
exchange income
(expense) 12 (60) 12 (60)
------ ------ ------ ------
Net income (loss) $ 653 $ 210 $ 653 $ 210
------ ------ ------ ------
Return on equity
(annualized)
After-tax net
operating income
(loss) 16.7% 7.5% 16.7% 7.5%
After-tax net
gains (losses) on
investments (0.2)% (0.2)% (0.2)% (0.2)%
After-tax foreign
exchange income
(expense) 0.3% (1.6)% 0.3% (1.6)%
------ ------ ------ ------
Net income (loss) 16.8% 5.7% 16.8% 5.7%
------ ------ ------ ------
(Some amounts may not
reconcile due to
rounding.)
Underwriting Income
Underwriting income is calculated as net premiums earned, less (1) incurred losses and loss adjustment expenses, (2) commission, brokerage, taxes and fees, and (3) other underwriting expenses. Net income (loss) is the most comparable GAAP measure. The Company believes underwriting income is a useful measure for management and investors when assessing the performance of the Company's reinsurance and insurance business segments. A reconciliation of Underwriting Income and Net Income is shown below.
Quarter-to-Date
-------------------------------------------------------------------------------------------------------------
(Dollars in millions) March 31, 2026 March 31, 2025
---------------------------------------------------- -------------------------------------------------------
(unaudited)
Global Global
Wholesale Wholesale
Reinsurance & Consolidated Reinsurance & Consolidated
Treaty Specialty Legacy Group Treaty Specialty Legacy Group
------------ ---------- -------- ---------------- --------------- ---------- -------- ----------------
Net premiums earned $ 2,456 $ 719 $ 399 $ 3,574 $ 2,579 $ 732 $ 540 $ 3,852
Less: Incurred
losses and LAE 1,448 453 316 2,217 2,005 482 407 2,893
Less: Commission,
brokerage, taxes
and fees 632 152 41 825 637 143 44 824
Less: Other
underwriting
expenses 61 90 65 216 60 76 103 238
----------- --------- --- --- ------ --- ------ --- --------- --- ------ ----
Underwriting income
(loss) $ 315 $ 23 $ (22) $ 316 $ (122) $ 32 $ (14) $ (104)
----------- --------- --- --- ------ --- ------ --------- --- ------ ---
Net investment
income 567 491
Net gains (losses)
on investments (10) (7)
Corporate expenses (38) (21)
Interest, fee and bond issue cost
amortization expense (36) (38)
Other income
(expense) (63) (73)
Income tax benefit
(expense) (83) (39)
--- ------ ------ ---
Net income (loss) $ 653 $ 210
--- ------ --- ------ ----
(Some amounts may not reconcile due to rounding.)
Book value per common share outstanding excluding URA(D)
Book value per common share outstanding excluding net unrealized appreciation (depreciation) of fixed maturity, available for sale securities ("URA(D)") is calculated as reported shareholders' equity less URA(D), divided by common shares outstanding. Book value per share is the most comparable GAAP measure. The Company believes this metric is useful to management and investors as it shows the value of shareholder returns on a per share basis after eliminating the variability of investments held at fair value. Please see the table on page 3 for a reconciliation of book value per common share outstanding (excluding URA(D)) and book value per share.
Annualized Total Shareholder Return
Annualized TSR ("TSR") is calculated as year-to-date growth in book value per common share outstanding (excluding URA(D)) plus year-to-date dividends per share. As further discussed above, book value per common share outstanding (excluding URA(D)) is a non-GAAP measure. Please see the table on page 3 for a reconciliation of book value per common share outstanding (excluding URA(D)) and book value per share.
--Financial Details Follow--
EVEREST GROUP, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
Three Months Ended
March 31,
------------------------
(In millions of U.S. dollars, except per share
amounts) 2026 2025
------- ------
(unaudited)
REVENUES:
Premiums earned $ 3,574 $ 3,852
Net investment income 567 491
Net gains (losses) on investments (10) (7)
Other income (expense) (63) (73)
------- ------
Total revenues 4,068 4,263
------- ------
CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses 2,217 2,893
Commission, brokerage, taxes and fees 825 824
Other underwriting expenses 216 238
Corporate expenses 38 21
Interest, fees and bond issue cost
amortization expense 36 38
------- ------
Total claims and expenses 3,332 4,015
------- ------
INCOME (LOSS) BEFORE TAXES 736 248
Income tax expense (benefit) 83 39
------- ------
NET INCOME (LOSS) $ 653 $ 210
Other comprehensive income (loss), net of tax:
Unrealized appreciation (depreciation)
("URA(D)") of securities arising during
the period (375) 284
Reclassification adjustment for realized
losses (gains) included in net income
(loss) 1 4
------- ------
Total URA(D) of securities arising
during the period (374) 289
Foreign currency translation and other
adjustments (35) 64
Reclassification adjustment for
amortization of net (gain) loss included in
net income (loss) -- --
------- ------
Total benefit plan net gain (loss) for
the period -- --
------- ------
Total other comprehensive income (loss), net
of tax (410) 352
------- ------
COMPREHENSIVE INCOME (LOSS) $ 243 $ 562
------- ------
EARNINGS PER COMMON SHARE:
Basic $ 16.21 $ 4.90
Diluted 16.21 4.90
EVEREST GROUP, LTD.
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
------------- ----------------
(In millions of U.S. dollars, except par
value per share) 2026 2025
-------- ---------
(unaudited)
ASSETS:
Fixed maturities - available for sale, at
fair value
(amortized cost: 2026, $35,137; 2025,
$34,620, credit allowances: 2026,
$(53); 2025, $(68)) $ 34,651 $ 34,573
Fixed maturities - held to maturity, at
amortized cost
(fair value: 2026, $601; 2025, $576, net
of credit allowances: 2026, $(8); 2025,
$(6)) 596 567
Equity securities, at fair value 177 180
Other invested assets 5,957 5,796
Short-term investments 2,223 2,994
Cash 1,415 1,318
-------- ---------
Total investments and cash 45,020 45,429
Accrued investment income 389 436
Premiums receivable (net of credit
allowances: 2026, $(94); 2025, $(94)) 5,579 5,727
Reinsurance loss recoverables (net of
credit allowances: 2026, $(60); 2025,
$(57)) 5,119 5,110
Funds held by reinsureds 1,395 1,326
Deferred acquisition costs 1,540 1,546
Prepaid reinsurance premiums 511 653
Income tax asset, net 933 915
Other assets (net of credit allowances:
2026, $(17); 2025, $(17)) 1,856 1,372
-------- ---------
TOTAL ASSETS $ 62,342 $ 62,514
-------- ---------
LIABILITIES:
Reserve for losses and loss adjustment
expenses 34,649 34,312
Unearned premium reserve 6,697 7,275
Funds held under reinsurance treaties 272 267
Amounts due to reinsurers 624 642
Losses in course of payment 141 151
Senior notes 2,352 2,352
Long-term notes 218 218
Borrowings from FHLB 1,019 1,019
Accrued interest on debt and borrowings 42 21
Unsettled securities payable 217 --
Other liabilities 819 797
-------- ---------
Total liabilities 47,051 47,054
-------- ---------
SHAREHOLDERS' EQUITY:
Preferred shares, par value: $0.01; 50.0
shares authorized; no shares issued and
outstanding -- --
Common shares, par value: $0.01; 200.0
shares authorized; 74.5 (2026) and 74.4
(2025) shares issued and outstanding 1 1
Additional paid-in capital 3,849 3,852
Accumulated other comprehensive income
(loss), net of deferred income tax
expense (benefit) of $(111) at 2026 and
$(23) at 2025 (462) (52)
Treasury shares, at cost; 34.7 shares
(2026) and 33.7 shares (2025) (5,236) (4,906)
Retained earnings 17,139 16,565
-------- ---------
Total shareholders' equity 15,291 15,461
-------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 62,342 $ 62,514
-------- ---------
EVEREST GROUP, LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
March 31,
------------------------
(In millions of U.S. dollars) 2026 2025
------- ------
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 653 $ 210
Adjustments to reconcile net income to net
cash provided by operating activities:
Decrease (increase) in premiums receivable 92 (155)
Decrease (increase) in funds held by
reinsureds, net (65) (35)
Decrease (increase) in reinsurance
recoverables (151) (248)
Decrease (increase) in income taxes 66 35
Decrease (increase) in prepaid reinsurance
premiums 105 71
Increase (decrease) in reserve for losses
and loss adjustment expenses 553 1,343
Increase (decrease) in unearned premiums (519) (152)
Increase (decrease) in amounts due to
reinsurers 26 19
Increase (decrease) in losses in course of
payment (10) 29
Change in equity adjustments in limited
partnerships (153) (47)
Distribution of limited partnership income 34 22
Change in other assets and liabilities,
net 18 (131)
Non-cash compensation expense 18 6
Amortization of bond premium (accrual of
bond discount) (29) (46)
Net (gains) losses on investments 10 7
------- ------
Net cash provided by (used in) operating
activities 649 928
------- ------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from fixed maturities
matured/called/repaid - available for sale 1,151 1,085
Proceeds from fixed maturities sold -
available for sale 519 127
Proceeds from fixed maturities
matured/called/repaid - held to maturity 20 55
Proceeds from fixed maturities sold - held to
maturity -- 10
Proceeds from equity securities sold -- 50
Distributions from other invested assets 50 132
Cost of fixed maturities acquired - available
for sale (2,455) (3,650)
Cost of fixed maturities acquired - held to
maturity (51) (2)
Cost of equity securities acquired -- --
Cost of other invested assets acquired (98) (103)
Net change in short-term investments 765 1,804
Net change in unsettled securities
transactions 10 (77)
------- ------
Net cash provided by (used in) investing
activities (88) (569)
------- ------
CASH FLOWS FROM FINANCING ACTIVITIES:
Common shares issued (redeemed) during the
period for share-based compensation, net of
expense (20) (19)
Purchase of treasury shares (330) (200)
Dividends paid to shareholders (80) (85)
Cost of shares withheld on settlements of
share-based compensation awards (23) (19)
------- ------
Net cash provided by (used in) financing
activities (454) (324)
------- ------
EFFECT OF EXCHANGE RATE CHANGES ON CASH 28 (18)
Net increase (decrease) in cash including
balances classified as held-for-sale 134 17
Net increase (decrease) in cash balances
classified as held-for-sale (38) --
Cash, beginning of period 1,318 1,549
------- ------
Cash, end of period $ 1,415 $ 1,567
------- ------
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid (recovered) $ 12 $ 1
Interest paid 35 16
NON-CASH TRANSACTIONS:
Non-cash limited partnership distribution $ -- $ 8
Non-cash restructure of fixed maturity
securities - available for sale and other
invested assets -- 34
Non-cash restructure of fixed maturity 6 --
securities - available for sale and
equity securities
View source version on businesswire.com: https://www.businesswire.com/news/home/20260429891630/en/
CONTACT: Media: Dawn Lauer
Chief Communications Officer
908.300.7670
Investors: Matt Rohrmann
Head of Investor Relations
908.604.7343
(END) Dow Jones Newswires
April 29, 2026 16:15 ET (20:15 GMT)
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