EG

Financials

Everest Group

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Market Data

Financials

XBRL · SEC EDGAR

2011–2025(15yr)

Revenue

Net Income

Metric	FY 2011	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$4.7B	$4.9B	$5.6B	$5.8B	$5.8B	$5.8B	$6.6B	$7.4B	$8.2B	$9.6B	$11.9B	$12.1B	$14.6B	$17.3B	$17.5B	+1.2%
Net Income	-$80.5M	$829.0M	$1.3B	$1.2B	$977.9M	$996.3M	$469.0M	$103.6M	$1.0B	$514.2M	$1.4B	$597.0M	$2.5B	$1.4B	$1.6B	+15.9%
Net Margin	-1.7%	16.8%	22.3%	20.7%	16.8%	17.2%	7.1%	1.4%	12.3%	5.4%	11.6%	5.0%	17.3%	7.9%	9.1%	+1.1pp
ROA	-0.43%	4.19%	6.36%	5.76%	4.56%	4.67%	1.99%	0.42%	3.69%	1.57%	3.61%	1.49%	5.10%	2.44%	2.55%	+0.1pp
EPS (Diluted)	$-1.49	$15.79	$25.44	$25.91	$22.10	$23.68	$11.36	$2.53	$24.70	$12.78	$34.62	$15.19	$60.19	$31.78	$37.80	+18.9%

Cash & Equiv.$331.0M

3 min read

1. THE BIG PICTURE

Everest Group is in the midst of a forced evolution, trading top-line growth for balance sheet survival. By offloading retail lines to AIG and slashing casualty exposure, management is attempting to de-risk a portfolio that has been plagued by billion-dollar catastrophe hits and chronic under-reserving. Everest Group is effectively a "show-me" story, where the primary goal is no longer expansion, but proving it can accurately price the risks it already carries.

2. WHERE THE RISKS HIT HARDEST

Underwriting Discipline vs. Reserve Reality: The stated advantage of "disciplined underwriting" (10-K Item 1) is undermined by persistent loss reserve deficiencies. In 2025, Everest Group had to increase reserves by $657 million for older liability claims, a direct admission that previous underwriting was not priced high enough to cover "social inflation" and legal costs (10-K Item 1A).
Financial Strength vs. Ratings Outlook: Everest Group cites its "Superior" financial strength as a key tool for attracting multinational clients, yet A.M. Best and S&P have assigned a negative outlook to these ratings. A downgrade would threaten its "Global Franchise" by making its policies less attractive to the very brokers it relies on (10-K Item 1).
Diversification vs. Broker Concentration: While management claims a "broad spread of risk," the Reinsurance segment is highly concentrated at the distribution level, with just ten brokers controlling over 60% of gross written premiums (10-K Item 1).

3. WHAT THE NUMBERS SAY TOGETHER

The data reveals a laggard attempting to buy investor confidence through capital returns rather than operational excellence. Everest Group ranks last among its peer group in every major efficiency metric: its net margin (9.5%), return on assets (2.7%), and return on tangible common equity (10.8%) are all the lowest in the set (XBRL). Despite this, it maintains the second-highest buyback yield at 3.8%, repurchasing $797 million in shares during 2025. This suggests management is using capital to support the stock price because it cannot find high-return opportunities within its own insurance operations. The 8.6% drop in quarterly premiums is not a sign of market weakness but a "deliberate action" to exit low-margin casualty lines to fix the return profile (8-K).

4. IS IT WORTH IT AT THIS PRICE?

At 5.3x forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, Everest Group trades at a massive 51% discount to the peer median of 10.7x (Yahoo Finance). The market is currently pricing in a long-term growth rate of just 0.5% (CAPM analysis). This deep discount is justified by Everest Group's inferior profitability; its 9.5% net margin is less than half of leader Arch Capital’s 21.0% (XBRL). Furthermore, the 0.9x price-to-tangible book ratio indicates that investors are skeptical of Everest Group's stated asset values, likely fearing that more reserve holes will appear in the 2022-2024 accident years. The current price is only "right" if the $657 million reserve charge was a one-time cleaning of the house rather than a recurring trend.

5. WHAT WOULD CHANGE THIS VIEW?

Cautious if further reserve strengthening is required in the next two quarters, signaling that management still does not have a handle on U.S. liability "social inflation."
Constructive if the net margin moves toward the double-digit peer average, proving that the exit from commercial retail lines and the AIG deal successfully improved the underlying earnings power.

6. BOTTOM LINE

Structural Advantage: A low-cost operating model and a massive global reinsurance footprint that provides scale despite recent volatility.

Bottom Line: Everest Group is a high-yield turnaround play that will remain a value trap until it proves it can price catastrophe and liability risk without recurring reserve surprises.

Source: Synthesis · LLM Analysis

4 min read

1. Top 5 Material Risks

Catastrophic Events: Everest Group is exposed to unpredictable natural and man-made catastrophes, including weather-related events, terrorism, and pandemics. Climate change may increase the frequency and severity of these events, potentially inhibiting Everest Group's ability to pay dividends or meet debt obligations.
Loss Reserve Deficiencies: Everest Group must estimate ultimate liabilities for reported and unreported claims. In 2025, Everest Group increased loss reserves by $657 million due to unfavorable development in excess casualty and U.S. liability lines (accident years 2022-2024), driven by social inflation and high-severity claims.
Reinsurance Market Volatility: Everest Group relies on prospective reinsurance to mitigate loss volatility. If Everest Group cannot renew or obtain reinsurance on favorable terms—due to inflation, industry-wide losses, or reduced capacity—its net income could be materially reduced.
Underwriting Risk: Success depends on accurately assessing risk and setting premium rates. Failure to do so, or the emergence of unanticipated exposures (such as mass tort cases or A&E liabilities), can lead to reserve deficiencies and net losses.
Financial Strength Ratings: A.M. Best, S&P, and Moody’s have assigned a negative outlook to Everest Group’s financial strength ratings. A downgrade could trigger contract termination provisions in treaty reinsurance business or require collateralization, impacting Everest Group's ability to write new business.

2. Company-Specific Risks

Concentration of Voting Power: Everest Re Advisors, Ltd. owns 19.3% of Everest Group’s outstanding common shares, and Everest Group’s bye-laws limit the voting power of any shareholder owning more than 9.9% to 9.9% of total voting power, which may impact the approval of shareholder proposals.
Bermuda Regulatory Supervision: As an Internationally Active Insurance Group, Everest Group may become subject to group-level solvency, capital requirements, and consolidated financial reporting under the Bermuda Monetary Authority (BMA), which could increase compliance costs and affect capital transactions.
Foreign Currency Exposure: In 2025, 31.7% of coverages were written in non-U.S. currencies, and 26.9% of the investment portfolio is denominated in non-U.S. currencies, exposing Everest Group to exchange rate fluctuations that can reduce net income and capital levels.
A&E Liability Complexity: While representing only 0.6% of gross reserves as of December 31, 2025, asbestos and environmental liabilities are uniquely difficult to estimate due to long reporting delays and the difficulty of identifying contamination sources.

3. Regulatory/Legal Risks

U.S. Tax Exposure: If the IRS successfully asserts that Bermuda Re is engaged in a U.S. trade or business, Everest Group could be subject to U.S. corporate income tax and branch profits tax, potentially resulting in a combined effective tax rate of 44.7%.
Global Minimum Tax: The enactment of the 15% global minimum corporate income tax (Pillar Two) in various jurisdictions may require Everest Group to pay "top-up" taxes. Additionally, guidance from the OECD regarding the restriction of deferred tax assets could reduce Everest Group's Deferred Tax Assets.
Anti-Takeover Provisions: Everest Group’s bye-laws include provisions that allow the board to decline share transfers or redeem shares if ownership exceeds certain thresholds (5% for non-investment companies, 9.9% for others), which may discourage takeover attempts and affect the market price of common shares.
Cybersecurity Regulation: Everest Group must comply with evolving global regulations, including the NAIC’s Insurance Data Security Model Law, the UK’s Data Protection Act, and the EU’s Artificial Intelligence Act, which may impose significant compliance costs.

4. Financial Impact Map

Catastrophic Events → Pre-tax Net Income → $726 million in losses in 2025; $1.135 billion in 2021.
Loss Reserve Deficiencies → Pre-tax Net Income → $657 million decrease in 2025; $1.337 billion decrease in 2024.
Reinsurance Market Volatility → Net Income → 12.4% of gross written premiums were ceded in 2025.
Financial Strength Ratings → Ability to write new business/Liquidity → Downgrades below A- could trigger contract termination or collateral requirements.
U.S. Tax Exposure → Net Income → Combined 44.7% effective tax rate if IRS asserts U.S. trade or business status.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
10-K	Feb 2026	Dec 2025
8-K	Feb 2026	—
14A	Apr 2025	—