Annualized Total Shareholder Return of 14.2%
Strengthened Casualty Reinsurance Reserves
Repurchased $474 million of Common Shares During the Quarter
HAMILTON, Bermuda--(BUSINESS WIRE)--October 28, 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 third quarter 2026 results.
"This quarter Everest generated an annualized total shareholder return of 14.2% as we executed on a number of initiatives including strengthening the balance sheet, accelerating capital return, and positioning the Company for its next chapter," said Jim Williamson, Everest President and CEO. "Our Reinsurance Treaty team is navigating the market cycle with the highest level of discipline, while leveraging its expertise and competitive advantages to maintain our focus on bottom-line results. Our Global Wholesale & Specialty business continues to generate momentum with strong profitable growth in specialty lines and targeted international markets. Our high-quality investment portfolio contributed $634 million in net investment income. As we approach the final stretch of the year and head into 2027, we are focused on executing our strategies across our Core businesses and proactively deploying capital, where share repurchases remain a top priority."
Third Quarter 2026 Highlights
-- Net income of $233 million, equal to $6.12 per diluted share versus
third quarter 2025 net income of $255 million, equal to $6.09 per diluted
share
-- Net operating income of $290 million, equal to $7.62 per diluted share
versus third quarter 2025 net operating income of $316 million, equal to
$7.54 per diluted share
-- Total Shareholder Return of 14.2% annualized1; Annualized 6.0% Net
Income ROE and 7.4% Net Operating Income ROE
-- Book value per share of $381.04 at September 30, 2026 versus $379.83 at
December 31, 2025
-- Book value per share excluding unrealized gains (losses) on fixed
maturity, available for sale securities of $414.00 at September 30, 2026
versus $379.70 at December 31, 2025
-- $3.7 billion in gross written premium from Core businesses, a
year-over-year decrease of 4.0%, which includes a 6.2% decrease for
Reinsurance Treaty and a 3.2% increase for Global Wholesale & Specialty
on a comparable basis
-- Combined ratio of 105.8% for Core businesses, which includes 108.5% for
Reinsurance Treaty and 97.3% for Global Wholesale & Specialty
-- Attritional combined ratios of 87.0% for Core businesses, which
includes 84.9% for Reinsurance Treaty and 93.7% for Global Wholesale &
Specialty
-- Net unfavorable reserve development of approximately $268 million in
prior year loss reserves, resulting in an increase of 8.5 points on the
Group combined ratio
-- Pre-tax underwriting income (loss) of $(223) million for Group, $(191)
million for Reinsurance Treaty, $19 million for Global Wholesale &
Specialty, and $(51) million for Legacy
-- Net investment income of $634 million versus $540 million in the prior
year quarter, driven by higher alternative investment returns
* Core businesses consist of our Reinsurance Treaty and Global Wholesale &
Specialty segments
(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.
Consolidated Financial Summary
Quarter-to-Date Year-to-Date
------------------------ ------------------------
September September September September
30, 30, 30, 30,
2026 2025 2026 2025
---------- ------------ ---------- ------------
Net income
(loss) $ 233 $ 255 $ 1,445 $ 1,145
Net income
(loss) per
diluted
common share $ 6.12 $ 6.09 $ 36.85 $ 27.06
Net income
(loss) return
on average
equity
(annualized) 6.0% 6.6% 12.5% 10.1%
Net operating
income (loss)
(2) (5) $ 290 $ 316 $ 1,620 $ 1,326
Net operating
income (loss)
per diluted
common share
(2) (5) $ 7.62 $ 7.54 $ 41.30 $ 31.33
After-tax net
operating
income (loss)
return on
average
equity
(annualized)
(2) (5) 7.4% 8.2% 14.0% 11.7%
Book value per
common share
outstanding $ 381.04 $ 366.22 $ 381.04 $ 366.22
Book value per
common share
outstanding
excluding
URA(D) (2) $ 414.00 $ 368.29 $ 414.00 $ 368.29
Total
Shareholder
Return
("TSR") -
Annualized 14.2% 12.3%
Weighted
average
common shares
outstanding -
diluted 37.6 41.4 38.7 41.8
Common shares
outstanding 37.4 42.0 37.4 42.0
Total
shareholders'
equity $ 14,252 $ 15,375 $ 14,252 $ 15,375
Total
shareholders'
equity
excluding
URA(D) $ 15,485 $ 15,462 $ 15,485 $ 15,462
Net investment
income $ 634 $ 540 $ 1,725 $ 1,563
Total
investments
and cash $ 43,965 $ 45,831 $ 43,965 $ 45,831
Total Capital
Return
--------------
Common share
repurchases $ 474 $ -- $ 1,200 $ 400
Number of
common shares
repurchased 1,268,158 -- 3,426,047 1,154,883
Dividends per
share $ 2.00 $ 2.00 $ 6.00 $ 6.00
Dividends to
shareholders $ 75 $ 84 $ 233 $ 253
All values in
USD millions
except for
per share
amounts and
percentages
Notes
(2) Denotes non-GAAP financial measure. See "Comments on Non-GAAP
Financial Measures" for an explanation and reconciliation.
(5) After-tax net operating income (loss) consists of net income
(loss) excluding after-tax acquisition, divestiture and
restructuring costs, after-tax ceded prior year favorable
(unfavorable) loss reserve development on reserves that are
subject to the external Adverse Development Cover ("ADC") and the
related amortization of the deferred gain, after-tax net gains
(losses) on investments, and after-tax net foreign exchange income
(expense). After-tax net operating income (loss) return on average
equity (annualized) is calculated by dividing after-tax net
operating income (loss) by average shareholders' equity, adjusted
for average net unrealized depreciation (appreciation) ("URA(D)")
of fixed maturity, available for sale securities. See "Comments on
Non-GAAP Financial Measures" for a reconciliation of net income,
the most comparable GAAP measure, to after-tax net operating
income.
The following information summarizes the Company's underwriting results on a total reportable segments basis, Core businesses basis and by reportable segment -- Reinsurance Treaty, Global Wholesale & Specialty, and Legacy, with selected commentary on these results.
Underwriting Results - Total Reportable Segments
Quarter-to-Date Year-to-Date
----------------------------------- -----------------------------------
September September September September
2026 2025 Change 2026 2025 Change
----------- ----------- --------- ----------- ----------- ---------
Gross written
premiums $ 3,742 $ 4,375 (14.5)% $ 11,116 $ 13,446 (17.3)%
Net written
premiums $ 2,968 $ 3,754 (20.9)% $ 9,192 $ 11,607 (20.8)%
Net premiums
earned $ 3,156 $ 3,855 (18.1)% $ 10,220 $ 11,698 (12.6)%
Key Ratios (6)
Loss Ratio:
Current year 58.0% 59.9% (1.9) pts 59.0% 60.4% (1.4) pts
Prior year
unfavorable
(favorable)
(6) 8.5% 12.4% (3.9) pts 2.2% 4.6% (2.4) pts
Catastrophe 10.5% 1.3% 9.2 pts 5.4% 5.2% 0.2 pts
------- ------- --------- ------- ------- ---------
Total loss ratio 77.0% 73.6% 3.4 pts 66.6% 70.1% (3.5) pts
Commission and
brokerage ratio 23.7% 23.1% 0.6 pts 23.3% 22.2% 1.1 pts
Other
underwriting
expenses 6.3% 6.7% (0.3) pts 6.3% 6.4% (0.1) pts
------- ------- --------- ------- ------- ---------
Combined ratio 107.1% 103.4% 3.7 pts 96.3% 98.7% (2.4) pts
Attritional
combined ratio
(3) 88.4% 89.6% (1.2) pts 88.8% 89.5% (0.7) pts
Pre-tax net
catastrophe
losses (4) $ 322 $ 50 $ 546 $ 542
Pre-tax net prior
year unfavorable
(favorable)
development (6) $ 268 $ 478 $ 226 $ 537
All values in USD
millions except
for percentages
Notes
(3) Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned,
and prior year unfavorable (favorable) development. Attritional ratios are non-GAAP
financial measures. See "Comments on Non-GAAP Financial Measures" for an explanation and
reconciliation.
(4) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums.
(6) On October 26, 2025 (effective October 1, 2025), the Company entered into two adverse
development reinsurance agreements ("ADC"). These agreements provide coverage for potential
adverse development on North American liabilities within the Global Wholesale & Specialty
and Legacy segments for net losses and net LAE with dates of loss prior to January 1, 2025,
that are paid on or after the effective date. To remove timing differences created by the
retroactive reinsurance accounting model and improve the comparability between periods of
underlying results, management excludes the following from the Global Wholesale & Specialty
and Legacy segments and total reportable segment results: Any ceded prior year favorable
(unfavorable) reserve development on reserves subject to the ADC The related amortization
of the deferred gain from prior year incurred losses and LAE See "Comments on Non-GAAP
Financial Measures" for a reconciliation of incurred losses and LAE and respective loss
ratio metrics.
Underwriting Results - Core Businesses(2)
Quarter-to-Date Year-to-Date
----------------------------------- -----------------------------------
September September September September
2026 2025 Change 2026 2025 Change
----------- ----------- --------- ----------- ----------- ---------
Gross written
premiums $ 3,663 $ 3,785 (3.2)% $ 10,808 $ 11,398 (5.2)%
Net written
premiums $ 2,911 $ 3,309 (12.0)% $ 8,974 $ 10,042 (10.6)%
Net premiums
earned $ 2,949 $ 3,317 (11.1)% $ 9,291 $ 10,082 (7.8)%
Key Ratios (6)
Loss Ratio:
Current year 57.0% 57.7% (0.7) pts 57.3% 58.0% (0.7) pts
Prior year
unfavorable
(favorable)
(6) 8.6% (0.2)% 8.8 pts 2.3% 0.5% 1.8 pts
Catastrophe 10.6% 1.5% 9.1 pts 5.6% 5.7% (0.1) pts
------- ------- --------- ------- ------- ---------
Total loss ratio 76.1% 58.9% 17.2 pts 65.2% 64.3% 0.9 pts
Commission and
brokerage ratio 24.5% 25.4% (0.9) pts 24.5% 24.3% 0.2 pts
Other underwriting
expenses 5.2% 4.6% 0.6 pts 5.0% 4.2% 0.8 pts
------- ------- --------- ------- ------- ---------
Combined ratio 105.8% 88.9% 16.9 pts 94.7% 92.8% 1.9 pts
Attritional
combined ratio
(3) 87.0% 87.6% (0.6) pts 87.0% 87.2% (0.2) pts
Pre-tax net
catastrophe
losses (4) $ 302 $ 48 $ 507 $ 514
Pre-tax net prior
year unfavorable
(favorable)
development (6) $ 253 $ (7) $ 211 $ 54
All values in USD
millions except
for percentages
Notes
(2) Denotes non-GAAP financial measure. See "Comments on Non-GAAP Financial Measures" for an
explanation and reconciliation.
(3) Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned,
and prior year unfavorable (favorable) development. Attritional ratios are non-GAAP
financial measures. See "Comments on Non-GAAP Financial Measures" for an explanation and
reconciliation.
(4) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums.
(6) On October 26, 2025 (effective October 1, 2025), the Company entered into two adverse
development reinsurance agreements ("ADC"). These agreements provide coverage for potential
adverse development on North American liabilities within the Global Wholesale & Specialty
and Legacy segments for net losses and net LAE with dates of loss prior to January 1, 2025,
that are paid on or after the effective date. To remove timing differences created by the
retroactive reinsurance accounting model and improve the comparability between periods of
underlying results, management excludes the following from the Global Wholesale & Specialty
and Legacy segments and total reportable segment results: Any ceded prior year favorable
(unfavorable) reserve development on reserves subject to the ADC The related amortization of
the deferred gain from prior year incurred losses and LAE See "Comments on Non-GAAP
Financial Measures" for a reconciliation of incurred losses and LAE and respective loss
ratio metrics.
Underwriting Results - Reinsurance Treaty Segment
Quarter-to-Date Year-to-Date
------------------------------- -------------------------------
September September September September
2026 2025 Change 2026 2025 Change
--------- --------- --------- --------- --------- ---------
Gross written
premiums 2,715 2,867 (5.3)% 8,109 8,753 (7.4)%
Net written
premiums 2,164 2,548 (15.1)% 6,797 7,861 (13.5)%
Net premiums
earned 2,243 2,579 (13.0)% 7,158 7,885 (9.2)%
Key Ratios
Loss Ratio:
Current year 56.0% 56.8% (0.8) pts 56.6% 56.7% (0.1) pts
Prior year
unfavorable
(favorable) 11.3% (0.6)% 11.9 pts 3.1% 0.5% 2.6 pts
Catastrophe 12.8% 1.6% 11.2 pts 6.3% 7.0% (0.7) pts
--------- --------- --------- --------- --------- ---------
Total loss ratio 80.1% 57.8% 22.3 pts 66.0% 64.2% 1.8 pts
Commission and
brokerage ratio 25.5% 26.8% (1.3) pts 25.6% 25.5% 0.1 pts
Other underwriting
expenses 2.9% 2.4% 0.5 pts 2.8% 2.4% 0.4 pts
--------- --------- --------- --------- --------- ---------
Combined ratio 108.5% 87.0% 21.5 pts 94.3% 92.1% 2.3 pts
Attritional
combined ratio
(3) 84.9% 86.0% (1.1) pts 85.1% 85.4% (0.3) pts
Pre-tax net
catastrophe
losses (4) 277 43 442 489
Pre-tax net prior
year unfavorable
(favorable)
development 253 (16) 220 43
All values in USD
millions except
for percentages
-- Gross written premiums decreased 6.2% versus the prior year quarter on
a comparable basis (constant dollar basis and excluding reinstatement
premiums)2, to approximately $2.7 billion.
-- Reduction in gross written premiums was primarily led by decreases of
24.8% in Casualty XOL and 15.8% in Casualty Pro-Rata, while property
decreased 1.8%, when adjusting for reinstatement premiums.
-- Attritional loss ratio decreased 50 basis points over third quarter
2025 to 56.3%, while the attritional combined ratio decreased 110 basis
points to 84.9% versus a year ago.
-- Net adverse prior year reserve development of $253 million, including
gross casualty reserve strengthening of approximately $600 million, on
top of the over $200 million of reserve strengthening in 2Q26.
-- Pre-tax catastrophe losses were $277 million net of estimated
recoveries and reinstatement premiums, driven primarily by losses from
the Colombia Earthquake and events in the Middle East, as well as a
number of weather-related losses globally. Pre-tax catastrophe losses
were $43 million in the prior-year quarter.
Notes
(2) Denotes non-GAAP financial measure. See "Comments on Non-GAAP Financial
Measures" for an explanation and reconciliation.
(3) Attritional ratios exclude catastrophe losses, net CAT reinstatement
premiums earned, and prior year unfavorable (favorable) development.
Attritional ratios are non-GAAP financial measures. See "Comments on Non-GAAP
Financial Measures" for an explanation and reconciliation.
(4) Pre-tax net catastrophe losses are net of reinsurance and reinstatement
premiums.
Underwriting Results - Global Wholesale & Specialty Segment
Quarter-to-Date Year-to-Date
----------------------------------- -----------------------------------
September September September September
2026 2025 Change 2026 2025 Change
----------- ----------- --------- ----------- ----------- ---------
Gross written
premiums $ 948 $ 918 3.3% $ 2,699 $ 2,646 2.0%
Net written
premiums $ 747 $ 761 (1.9)% $ 2,177 $ 2,182 (0.2)%
Net premiums
earned $ 705 $ 737 (4.3)% $ 2,133 $ 2,197 (2.9)%
Key Ratios (6)
Loss Ratio:
Current year 60.0% 61.0% (1.0) pts 59.8% 62.9% (3.1) pts
Prior year
unfavorable
(favorable)
(6) --% 1.2% (1.2) pts (0.4)% 0.5% (0.9) pts
Catastrophe 3.5% 0.8% 2.7 pts 3.0% 1.1% 1.9 pts
------- ------- --------- ------- ------- ---------
Total loss ratio 63.6% 63.0% 0.6 pts 62.5% 64.5% (2.0) pts
Commission and
brokerage ratio 21.1% 20.2% 0.9 pts 21.0% 20.0% 1.0 pts
Other underwriting
expenses 12.6% 12.3% 0.3 pts 12.6% 10.9% 1.7 pts
------- ------- --------- ------- ------- ---------
Combined ratio 97.3% 95.5% 1.8 pts 96.0% 95.4% 0.6 pts
Attritional
combined ratio
(3) 93.7% 93.4% 0.3 pts 93.4% 93.6% (0.2) pts
Pre-tax net
catastrophe
losses (4) $ 25 $ 6 $ 65 $ 25
Pre-tax net prior
year unfavorable
(favorable)
development (6) $ -- $ 9 $ (9) $ 10
All values in USD
millions except
for percentages
-- Gross written premiums increased 3.2% on a comparable basis (constant
dollar basis and excluding reinstatement premiums)2, to approximately
$948 million as we continued to improve the mix and quality of the
portfolio.
-- Growth in gross written premiums was led by increases of 27.5% in
Financial Lines, 21.5% in Specialty, and 19.7% in Casualty, partially
offset by decreases of 21.4% in Facultative and 6.0% in Property.
-- Attritional loss ratio improved 90 basis points over third quarter 2025
to 60.0%, while the attritional combined ratio increased by 30 basis
points to 93.7% versus a year ago.
-- Total expense ratio increased 120 basis points to 33.7% due to mix and
lower earned premium.
-- Pre-tax catastrophe losses were $25 million, net of estimated
recoveries and reinstatement premiums, an increase versus the prior year
quarter.
Notes
(2) Denotes non-GAAP financial measure. See "Comments on Non-GAAP Financial
Measures" for an explanation and reconciliation.
(3) Attritional ratios exclude catastrophe losses, net CAT reinstatement
premiums earned, and prior year unfavorable (favorable) development.
Attritional ratios are non-GAAP financial measures. See "Comments on Non-GAAP
Financial Measures" for an explanation and reconciliation.
(4) Pre-tax net catastrophe losses are net of reinsurance and reinstatement
premiums.
(6) On October 26, 2025 (effective October 1, 2025), the Company entered into
two adverse development reinsurance agreements ("ADC"). These agreements
provide coverage for potential adverse development on North American
liabilities within the Global Wholesale & Specialty and Legacy segments for
net losses and net LAE with dates of loss prior to January 1, 2025, that are
paid on or after the effective date. To remove timing differences created by
the retroactive reinsurance accounting model and improve the comparability
between periods of underlying results, management excludes the following from
the Global Wholesale & Specialty and Legacy segments and total reportable
segment results: Any ceded prior year favorable (unfavorable) reserve
development on reserves subject to the ADC The related amortization of the
deferred gain from prior year incurred losses and LAE See "Comments on
Non-GAAP Financial Measures" for a reconciliation of incurred losses and LAE
and respective loss ratio metrics.
Underwriting Results - Legacy Segment
Quarter-to-Date Year-to-Date
----------------------- -----------------------
September September September September
30, 30, 30, 30,
2026 2025 2026 2025
---------- ----------- ---------- -----------
Gross written
premiums $ 79 $ 590 $ 308 $ 2,048
Net written
premiums $ 57 $ 444 $ 218 $ 1,565
Net premiums earned $ 208 $ 539 $ 929 $ 1,616
Incurred losses and
LAE
Current year 152 395 702 1,211
Prior year
unfavorable
(favorable)
(6) 14 486 14 484
Catastrophes 20 2 39 28
--------- ---------- --------- ----------
Total incurred
losses and LAE 186 882 755 1,723
Commission,
brokerage, taxes
and fees 26 50 108 144
Other underwriting
expenses 46 105 175 324
--------- ---------- --------- ----------
Underwriting income
(loss) (2) (6) $ (51) $ (498) $ (109) $ (575)
--------- ---------- --------- ----------
KEY METRIC
Net reserve for
losses and loss
adjustment
expenses before
impact of ADC (2) $ 5,882 $ 6,306 $ 5,882 $ 6,306
All values in USD
millions
-- Our Legacy segment now encompasses our commercial retail insurance
business following the announcement of the commercial retail insurance
renewal rights transaction.
-- Net premiums earned in the quarter were largely driven by the
commercial retail insurance business, which remain on track with our
expectations following the announcement of the renewal rights
transaction.
-- Net adverse prior year reserve development of $14 million not subject
to the ADC, driven by two mid-sized property losses.
Notes
(2) Denotes non-GAAP financial measure. See "Comments on Non-GAAP Financial
Measures" for an explanation and reconciliation.
(6) On October 26, 2025 (effective October 1, 2025), the Company entered into
two adverse development reinsurance agreements ("ADC"). These agreements
provide coverage for potential adverse development on North American
liabilities within the Global Wholesale & Specialty and Legacy segments for
net losses and net LAE with dates of loss prior to January 1, 2025, that are
paid on or after the effective date. To remove timing differences created by
the retroactive reinsurance accounting model and improve the comparability
between periods of underlying results, management excludes the following from
the Global Wholesale & Specialty and Legacy segments and total reportable
segment results: Any ceded prior year favorable (unfavorable) reserve
development on reserves subject to the ADC The related amortization of the
deferred gain from prior year incurred losses and LAE See "Comments on
Non-GAAP Financial Measures" for a reconciliation of incurred losses and LAE
and respective loss ratio metrics.
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 developments 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 and quarterly reports on Form 10-Q. 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 October 29, 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 which include the following:
-- after-tax net operating income (loss) and after-tax net operating
income (loss) per diluted share,
-- net operating income return on equity ("ROE"),
-- book value per common share outstanding excluding net unrealized
appreciation (depreciation) on fixed maturity, available for sale
securities ("URA(D)"),
-- Annualized Total Shareholder Return,
-- underwriting income (loss),
-- net reserves for losses and loss adjustment expenses before the impact
of ADC (Legacy Segment Metric),
-- attritional loss ratio,
-- attritional combined ratio, and
-- gross written premiums presented on a comparable basis.
The Company has also presented results of its "Core" businesses, consisting of the Reinsurance Treaty and Global Wholesale & Specialty segments (excluding the Legacy segment), to reflect the businesses that are the Company's primary strategic focus. 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 acquisition, divestiture and restructuring costs, after-tax ceded prior year unfavorable (favorable) loss reserve development on reserves that are subject to the external adverse development cover ("ADC") and the related amortization of the deferred gain, after-tax net gains (losses) on investments and after-tax net foreign exchange income (expense), as shown below:
Three Months Ended September 30, Nine Months Ended September 30,
--------------------------------------- ---------------------------------------
(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
-------- ------- -------- ---------- ---------- ------- ------ ----------
Net income (loss) $233 $ 6.12 $ 255 $ 6.09 $1,445 $36.85 $1,145 $ 27.06
After-tax acquisition,
divestiture and
restructuring costs 18 0.46 -- -- 108 2.76 -- --
After-tax ceded prior
year unfavorable
(favorable)
development and
related amortization
under ADC -- -- -- -- 7 0.18 -- --
After-tax net gains
(losses) on
investments 51 1.35 37 0.87 65 1.67 46 1.09
After-tax net foreign
exchange income
(expense) (12) (0.30) 24 0.58 (6) (0.15) 135 3.18
--- ----- ---- --------- ----- ----- ----- ---------
After-tax net
operating income
(loss) $290 $ 7.62 $ 316 $ 7.54 $1,620 $41.30 $1,326 $ 31.33
--- ----- ---- --------- ----- ----- ----- ---------
(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. Additionally, the Company believes acquisition, divestiture and restructuring costs, which are comprised of transactional gain (losses) and one-time expenses, are of a non-recurring nature as they are associated with acquiring or divesting businesses and restructuring activities. Lastly, the retroactive reinsurance accounting model applied to the ADC creates volatility in the statement of operations that is not representative of the underlying economic substance of the transaction. Management is excluding the ceded prior year favorable (unfavorable) reserve development on reserves that are subject to the ADC and the related amortization of the deferred gain from the after-tax net operating income to improve comparability between periods and to remove this timing difference created by the retroactive reinsurance accounting model from its net operating income measure.
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.
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
------------------------ ------------------------
September September September September
30, 30, 30, 30,
(Dollars in millions) 2026 2025 2026 2025
---------- ------------ ---------- ------------
(unaudited) (unaudited)
Beginning of period
shareholders' equity $ 15,430 $ 15,019 $ 15,461 $ 13,875
Add: Net unrealized
depreciation
(appreciation) of
fixed maturity,
available for sale
securities 342 252 (5) 849
--------- ----------- --------- -----------
Adjusted beginning of
period shareholders'
equity $ 15,772 $ 15,272 $ 15,455 $ 14,724
--------- ----------- --------- -----------
End of period
shareholders' equity $ 14,252 $ 15,375 $ 14,252 $ 15,375
Add: Net unrealized
depreciation
(appreciation) of
fixed maturity,
available for sale
securities 1,233 87 1,233 87
--------- ----------- --------- -----------
Adjusted end of period
shareholders' equity $ 15,485 $ 15,462 $ 15,485 $ 15,462
--------- ----------- --------- -----------
Average adjusted
shareholders' equity $ 15,628 $ 15,367 $ 15,470 $ 15,093
Net income (loss) $ 233 $ 255 $ 1,445 $ 1,145
After-tax acquisition,
divestiture and
restructuring costs 18 -- 108 --
After-tax ceded prior
year unfavorable
(favorable)
development and
related amortization
under ADC -- -- 7 --
After-tax net gains
(losses) on
investments 51 37 65 46
After-tax foreign
exchange income
(expense) (12) 24 (6) 135
--------- ----------- --------- -----------
After-tax net
operating income
(loss) $ 290 $ 316 $ 1,620 $ 1,326
--------- ----------- --------- -----------
Return on equity
(annualized)
Net income (loss) 6.0% 6.6% 12.5% 10.1%
After-tax acquisition,
divestiture and
restructuring costs 0.5% --% 0.9% --%
After-tax ceded prior
year unfavorable
(favorable)
development and
related amortization
under ADC --% --% 0.1% --%
After-tax net gains
(losses) on
investments 1.3% 1.0% 0.6% 0.4%
After-tax foreign
exchange income
(expense) (0.3)% 0.6% (0.1)% 1.2%
--------- ----------- --------- -----------
After-tax net
operating income
(loss) 7.4% 8.2% 14.0% 11.7%
--------- ----------- --------- -----------
(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 below 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 below for a reconciliation of book value per common share outstanding (excluding URA(D)) and book value per share.
As of
--------------------------------
(Dollars in millions, except per share
amounts) September 30, September 30,
2026 2025
--------------- ---------------
End of period shareholders' equity $ 14,252 $ 15,375
Net URA(D) 1,233 87
Adjusted end of period shareholders'
equity $ 15,485 $ 15,462
Common shares outstanding 37.4 42.0
Book value per common share outstanding $ 381.04 $ 366.22
Less: URA(D) of fixed maturity, available
for sale securities (32.96) (2.07)
Book value per common share outstanding
(excluding URA(D)) $ 414.00 $ 368.29
Total Shareholder Return (TSR) 14.2% 12.3%
(Some amounts may not reconcile due to
rounding.)
Underwriting Income (Loss)
Underwriting income (loss) is calculated as net premiums earned, less (1) incurred losses and loss adjustment expenses adjusted to exclude ceded prior year favorable (unfavorable) reserve development on reserves subject to the ADC and the related amortization of the deferred gain, (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. Core businesses consist of the Reinsurance Treaty and Global Wholesale & Specialty segments (excluding the Legacy segment) to reflect the businesses that are the Company's primary strategic focus. A reconciliation of Underwriting Income (Loss) and Net Income is shown below.
Quarter-to-Date
----------------------------------------------------------------------------------------------------------------------------------------
September 30, 2026 September 30, 2025
----------------------------------------------------------------------- ---------------------------------------------------------------
(unaudited)
Global Global
Wholesale Wholesale
Reinsurance & Core Total Reinsurance & Core Total
(Dollars in millions) Treaty Specialty Businesses Legacy Consolidated Treaty Specialty Businesses Legacy Consolidated
--------------- ---------- -------------- -------- ---------------- ------------- ---------- ---------- ------ ----------------
Net premiums earned $ 2,243 $ 705 $ 2,949 $ 208 $ 3,156 $ 2,579 $ 737 $ 3,317 $ 539 $ 3,855
Less: Incurred
losses and LAE 1,797 449 2,245 186 2,432 1,490 465 1,955 882 2,837
Less: Commission,
brokerage, taxes
and fees 572 149 721 26 747 692 149 841 50 890
Less: Other
underwriting
expenses 65 89 154 46 200 62 90 152 105 258
------ --- --------- ------ --- ------ ---- --------- --------- --------- ---- ------ ----
Underwriting income
(loss) $ (191) $ 19 $ (172) $ (51) $ (223) $ 335 $ 33 $ 369 $(498) $ (130)
------ --------- ------ --- ------ --- --------- --------- --------- ---- ------ ---
Ceded prior year (unfavorable) favorable development and related
amortization under ADC -- --
Net investment
income 634 540
Net gains (losses)
on investments (68) (47)
Corporate expenses (30) (27)
Interest, fee and bond issue cost
amortization expense (36) (38)
Other income
(expense) (9) (29)
Income tax benefit
(expense) (36) (14)
------ --- ------ ---
Net income (loss) $ 233 $ 255
------ ---- ------ ----
(Some amounts may not reconcile due to rounding.)
Net reserve for losses and loss adjustment expenses before impact of the ADC (Legacy Segment Metric)
Net reserve for losses and loss adjustment expenses ("LAE") before impact of the ADC is calculated as reserve for losses and LAE, less unpaid reinsurance loss recoverable adjusted to exclude the unpaid recoverable of the ADC reinsurance agreements. Due to the run-off nature of the Legacy business and the Company's focus on managing and settling existing liabilities, the company introduced net reserves for losses and LAE before impact of the ADC as a Legacy segment performance measure to better align with how management evaluates the business. This measure is not meaningful for the Global Wholesale & Specialty and the Reinsurance Treaty segments so it is not used as a measure to manage these segments.
The following table is a reconciliation of the Legacy reserve for losses and LAE including and excluding the impact of ADC for the periods noted:
Three Months Ended Nine Months Ended
(Dollars in millions) September 30, September 30,
------------------ --------------------
2026 2025 2026 2025
-------- -------- -------- ----------
Group - Incurred
Losses and Loss
Adjustment Expenses:
Incurred losses and
loss adjustment
expenses -
Consolidated
Statements Of
Operations $ 2,432 $ 2,837 $ 6,819 $ 8,203
Less: ceded prior year
unfavorable
(favorable)
development and
related amortization
under ADC -- -- 8 --
------ ------ ------ ------
Incurred losses and
loss adjustment
expenses - total
reportable segments $ 2,432 $ 2,837 $ 6,811 $ 8,203
Legacy Segment Key
Metric:
Reserve for losses and
loss adjustment
expenses $ 7,790 $ 8,379 $ 7,790 $ 8,379
Less: unpaid
reinsurance loss
recoverables
before impact of
ADC (1,907) (2,073) (1,907) (2,073)
------ ------ ------ ------
Net reserve for losses
and loss adjustment
expenses before
impact of ADC $ 5,882 $ 6,306 $ 5,882 $ 6,306
------ ------ ------ ------
(Some amounts may not reconcile due to rounding.)
Attritional Loss Ratio and Attritional Combined Ratio
The loss ratio is calculated as the sum of total incurred losses and loss adjustment expenses less the ceded prior year favorable (unfavorable) reserve development on reserves subject to the ADC and the related amortization of the deferred gain, divided by net premiums earned. The combined ratio is calculated as the sum of total incurred losses and loss adjustment expenses less the ceded prior year favorable (unfavorable) reserve development on reserves subject to the ADC and the related amortization of the deferred gain, 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, and prior year development. 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. Core businesses consist of the Reinsurance Treaty and Global Wholesale & Specialty segments (excluding the Legacy segment) to reflect the businesses that are the Company's primary strategic focus. 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 September 30,
----------------------------------------------------------------------------------------------
2026 2025
---------------------------------------------- ----------------------------------------------
(unaudited)
Global Global
Wholesale Total Wholesale Total
Reinsurance & Core Reportable Reinsurance & Core Reportable
Treaty Specialty Businesses Segments Treaty Specialty Businesses Segments
----------- --------- ---------- ---------- ----------- --------- ---------- ----------
Loss ratio 80.1% 63.6% 76.1% 77.0% 57.8% 63.0% 58.9% 73.6%
Adjustment for
catastrophe
losses (12.8)% (3.5)% (10.6)% (10.5)% (1.6)% (0.8)% (1.5)% (1.3)%
Adjustment for
reinstatement
premiums 0.3% --% 0.2% 0.2% --% --% --% --%
Adjustment for
prior year
development (11.3)% --% (8.6)% (8.5)% 0.6% (1.2)% 0.2% (12.4)%
Adjustment for
other items 0.1% --% 0.1% 0.1% --% (0.1)% --% --%
----------- --------- ---------- ---------- ----------- --------- ---------- ----------
Attritional loss
ratio 56.3% 60.0% 57.2% 58.3% 56.8% 60.9% 57.7% 59.9%
----------- --------- ---------- ---------- ----------- --------- ---------- ----------
(Some amounts may not reconcile due to rounding.)
Three Months Ended September 30,
----------------------------------------------------------------------------------------------
2026 2025
---------------------------------------------- ----------------------------------------------
(unaudited)
Global Global
Wholesale Total Wholesale Total
Reinsurance & Core Reportable Reinsurance & Core Reportable
Treaty Specialty Businesses Segments Treaty Specialty Businesses Segments
----------- --------- ---------- ---------- ----------- --------- ---------- ----------
Combined ratio 108.5% 97.3% 105.8% 107.1% 87.0% 95.5% 88.9% 103.4%
Adjustment for
catastrophe
losses (12.8)% (3.5)% (10.6)% (10.5)% (1.6)% (0.8)% (1.5)% (1.3)%
Adjustment for
reinstatement
premiums 0.4% --% 0.3% 0.3% --% --% --% --%
Adjustment for
prior year
development (11.3)% --% (8.6)% (8.5)% 0.6% (1.2)% 0.2% (12.4)%
Adjustment for
other items 0.1% --% 0.1% 0.1% --% (0.2)% --% --%
----------- --------- ---------- ---------- ----------- --------- ---------- ----------
Attritional
combined ratio 84.9% 93.7% 87.0% 88.4% 86.0% 93.4% 87.6% 89.6%
----------- --------- ---------- ---------- ----------- --------- ---------- ----------
(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. Core businesses consist of the Reinsurance Treaty and Global Wholesale & Specialty segments (excluding the Legacy segment) to reflect the businesses that are the Company's primary strategic focus. 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) September 30, 2026 September 30, 2025 Change
------------------ ------------------ ----------
(unaudited)
Gross Written Gross Written
Premium Premium % Impact
------------------ ------------------ ----------
Group $ 3,742 $ 4,375 (14.5)%
Adjustment for gross
CAT reinstatement
premiums (18) (3) (0.4)%
Adjustment for foreign
exchange effect -- 14 (0.3)%
--- -------- --- --- -------- --- ------
Group (comparable
basis) $ 3,724 $ 4,386 (15.1)%
--- -------- --- --- -------- --- ------
Core Businesses $ 3,663 $ 3,785 (3.2)%
Adjustment for gross
CAT reinstatement
premiums (18) (3) (0.4)%
Adjustment for foreign
exchange effect -- 13 (0.3)%
--- -------- --- --- -------- --- ------
Core Businesses
(comparable basis) $ 3,645 $ 3,796 (4.0)%
--- -------- --- --- -------- --- ------
Reinsurance Treaty $ 2,715 $ 2,867 (5.3)%
Adjustment for gross
CAT reinstatement
premiums (18) (3) (0.5)%
Adjustment for foreign
exchange effect -- 12 (0.4)%
--- -------- --- --- -------- --- ------
Reinsurance Treaty
(comparable basis) $ 2,697 $ 2,877 (6.2)%
--- -------- --- --- -------- --- ------
Global Wholesale &
Specialty $ 948 $ 918 3.3%
Adjustment for gross
CAT reinstatement
premiums -- -- --%
Adjustment for foreign
exchange effect -- 1 (0.1)%
--- -------- --- --- -------- --- ------
Global Wholesale &
Specialty (comparable
basis) $ 948 $ 919 3.2%
--- -------- --- --- -------- --- ------
Legacy $ 79 $ 590 (86.7)%
Adjustment for gross
CAT reinstatement
premiums -- -- --%
Adjustment for foreign
exchange effect -- 1 --%
--- -------- --- --- -------- --- ------
Legacy (comparable
basis) $ 79 $ 590 (86.7)%
--- -------- --- --- -------- --- ------
(Some amounts may not reconcile due to rounding.)
--Financial Details Follow--
EVEREST GROUP, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ---------------------
(In millions of U.S.
dollars, except per
share amounts) 2026 2025 2026 2025
------------ -------- ------------ -------
(unaudited) (unaudited)
REVENUES:
Premiums earned $ 3,156 $ 3,855 $ 10,220 $11,698
Net investment income 634 540 1,725 1,563
Net gains (losses) on
investments (68) (47) (86) (59)
Other income
(expense) (9) (29) (117) (129)
-------- ------- -------- ------
Total revenues 3,713 4,319 11,742 13,073
-------- ------- -------- ------
CLAIMS AND EXPENSES:
Incurred losses and
loss adjustment
expenses 2,432 2,837 6,819 8,203
Commission,
brokerage, taxes and
fees 747 890 2,386 2,595
Other underwriting
expenses 200 258 641 750
Corporate expenses 30 27 101 79
Interest, fees and
bond issue cost
amortization
expense 36 38 107 114
-------- ------- -------- ------
Total claims and
expenses 3,445 4,050 10,054 11,740
-------- ------- -------- ------
INCOME (LOSS) BEFORE
TAXES 268 269 1,688 1,332
Income tax expense
(benefit) 36 14 243 187
-------- ------- -------- ------
NET INCOME (LOSS) $ 233 $ 255 $ 1,445 $ 1,145
Other comprehensive
income (loss), net of
tax:
Unrealized
appreciation
(depreciation)
("URA(D)") of
securities
arising during
the period (935) 129 (1,295) 714
Reclassification
adjustment for
realized losses
(gains) included
in net income
(loss) 44 37 57 48
-------- ------- -------- ------
Total URA(D) of
securities
arising during
the period (891) 165 (1,238) 762
Foreign currency
translation and
other
adjustments 9 1 (23) 230
Reclassification
adjustment for
amortization of
net (gain) loss
included in net
income (loss) -- -- (1) (8)
-------- ------- -------- ------
Total benefit
plan net gain
(loss) for the
period -- -- (1) (8)
-------- ------- -------- ------
Total other
comprehensive income
(loss), net of tax (882) 167 (1,262) 984
-------- ------- -------- ------
COMPREHENSIVE INCOME
(LOSS) $ (649) $ 422 $ 183 $ 2,129
-------- ------- -------- ------
EARNINGS PER COMMON
SHARE:
Basic $ 6.12 $ 6.09 $ 36.85 $ 27.06
Diluted 6.12 6.09 36.85 27.06
EVEREST GROUP, LTD.
CONSOLIDATED BALANCE SHEETS
September 30, 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, $34,680;
2025, $34,620, credit allowances:
2026, $(115); 2025, $(68)) $ 33,058 $ 34,573
Fixed maturities - held to maturity, at
amortized cost
(fair value: 2026, $549; 2025, $576,
net of credit allowances: 2026,
$(7); 2025, $(6)) 563 567
Equity securities, at fair value 161 180
Other invested assets 6,141 5,796
Short-term investments 3,055 2,994
Cash 987 1,318
---------- ---------
Total investments and cash 43,965 45,429
Accrued investment income 408 436
Premiums receivable (net of credit
allowances: 2026, $(112); 2025,
$(94)) 5,828 5,727
Reinsurance loss recoverables (net of
credit allowances: 2026, $(62); 2025,
$(57)) 5,196 5,110
Funds held by reinsureds 1,392 1,326
Deferred acquisition costs 1,460 1,546
Prepaid reinsurance premiums 871 653
Income tax asset, net 1,322 915
Other assets (net of credit allowances:
2026, $(17); 2025, $(17)) 1,609 1,372
---------- ---------
TOTAL ASSETS $ 62,052 $ 62,514
---------- ---------
LIABILITIES:
Reserve for losses and loss adjustment
expenses 35,288 34,312
Unearned premium reserve 6,409 7,275
Funds held under reinsurance treaties 273 267
Amounts due to reinsurers 1,013 642
Losses in course of payment 213 151
Senior notes 2,353 2,352
Long-term notes 218 218
Borrowings from FHLB 1,019 1,019
Accrued interest on debt and borrowings 43 21
Unsettled securities payable 30 --
Other liabilities 943 797
---------- ---------
Total liabilities 47,800 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 3,891 3,852
Accumulated other comprehensive income
(loss), net of deferred income tax
expense (benefit) of $(335) at 2026
and $(23) at 2025 (1,314) (52)
Treasury shares, at cost; 37.1 (2026)
and 33.7 (2025) (6,104) (4,906)
Retained earnings 17,777 16,565
---------- ---------
Total shareholders' equity 14,252 15,461
---------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 62,052 $ 62,514
---------- ---------
EVEREST GROUP, LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended
September 30,
-----------------------
(In millions of U.S. dollars) 2026 2025
----------- ----------
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 1,445 $ 1,145
Adjustments to reconcile net income to net cash
provided by operating activities:
Decrease (increase) in premiums
receivable (158) (417)
Decrease (increase) in funds held by
reinsureds, net (62) (43)
Decrease (increase) in reinsurance
recoverables (284) (266)
Decrease (increase) in income taxes (106) 80
Decrease (increase) in prepaid
reinsurance premiums (255) 77
Increase (decrease) in reserve for losses
and loss adjustment expenses 1,251 3,086
Increase (decrease) in unearned premiums (812) (48)
Increase (decrease) in amounts due to
reinsurers 425 213
Increase (decrease) in losses in course
of payment 62 (23)
Change in equity adjustments in limited
partnerships (424) (242)
Distribution of limited partnership
income 176 128
Change in other assets and liabilities,
net 302 (204)
Non-cash compensation expense 58 43
Amortization of bond premium (accrual of
bond discount) (98) (122)
Net (gains) losses on investments 86 59
------ ------
Net cash provided by (used in) operating
activities 1,606 3,466
------ ------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from fixed maturities
matured/called/repaid - available for sale 3,201 3,376
Proceeds from fixed maturities sold - available
for sale 1,485 933
Proceeds from fixed maturities
matured/called/repaid - held to maturity 91 156
Proceeds from fixed maturities sold - held to
maturity -- 10
Proceeds from equity securities sold 36 55
Distributions from other invested assets 202 266
Cost of fixed maturities acquired - available
for sale (4,948) (8,021)
Cost of fixed maturities acquired - held to
maturity (84) (6)
Cost of equity securities acquired (3) (2)
Cost of other invested assets acquired (325) (406)
Net change in short-term investments (47) 945
Net change in unsettled securities transactions 22 (66)
------ ------
Net cash provided by (used in) investing
activities (369) (2,759)
------ ------
CASH FLOWS FROM FINANCING ACTIVITIES:
Common shares issued (redeemed) during the
period for share-based compensation, net of
expense (18) (19)
Purchase of net treasury shares (1,198) (400)
Dividends paid to shareholders (233) (253)
Cost of shares withheld on settlements of
share-based compensation awards (24) (20)
------ ------
Net cash provided by (used in) financing
activities (1,474) (693)
------ ------
EFFECT OF EXCHANGE RATE CHANGES ON CASH 47 (24)
Net change in cash including balances
classified as held-for-sale (190) (10)
Net change in cash balances classified as
held-for-sale (141) --
Cash, beginning of period 1,318 1,549
------ ------
Cash, end of period $ 987 $ 1,539
------ ------
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid (recovered) $ 342 $ 98
Interest paid 106 91
NON-CASH TRANSACTIONS:
Non-cash limited partnership distribution $ -- $ 8
Non-cash restructure of equity securities 20 --
and other invested assets
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/20261028321647/en/
CONTACT: Media: Dawn Lauer
Chief Communications Officer
908.300.7670
Investors: Matt Rohrmann
Head of Investor Relations
908.604.7343
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