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1. Company Snapshot

1.a. Company Description

Everest Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Bermuda, and internationally.The company operates through Reinsurance Operations and Insurance Operations segments.The Reinsurance Operations segment writes property and casualty reinsurance; and specialty lines of business through reinsurance brokers, as well as directly with ceding companies in the United States, Bermuda, Ireland, Canada, Singapore, Switzerland, and the United Kingdom.


The Insurance Operations segment writes property and casualty insurance directly, as well as through brokers, surplus lines brokers, and general agents in the United States, Bermuda, Canada, Europe, South America, France, Germany, Spain, Canada, Chile, the United Kingdom, Ireland, and the Netherlands.The company also provides treaty and facultative reinsurance products; admitted and non-admitted insurance products; and property and casualty reinsurance and insurance coverages, including marine, aviation, surety, errors and omissions liability, directors' and officers' liability, medical malpractice, mortgage reinsurance, other specialty lines, accident and health, and workers' compensation products.In addition, it offers commercial property and casualty insurance products through wholesale and retail brokers, surplus lines brokers, and program administrators.


The company was formerly known as Everest Re Group, Ltd.and changed its name to Everest Group, Ltd.in July 2023.


The company was founded in 1973 and is headquartered in Hamilton, Bermuda.

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1.b. Last Insights on EG

Everest Group's recent performance was driven by strong renewal retention, continued favorable rate increases, and prudent capital deployment. The company's fourth-quarter performance benefited from higher premiums, increased assets under management, and rate increases. Additionally, the new management team is expected to take bold steps, such as setting lower expectations and ensuring consistent results. However, Q4 earnings missed estimates due to higher expenses and underwriting loss. The company's reinsurance segment showed strength with higher premiums, but this was partially offset by the underwriting loss.

1.c. Company Highlights

2. Everest Group's Q3 2025 Earnings: A Strategic Shift

Everest Group reported gross written premiums of $4.4 billion, a 1.2% decrease in constant dollars, and a combined ratio of 103.4%, reflecting net reserve strengthening. The Reinsurance business had a combined ratio of 87% and gross written premium of $3.2 billion, down 2% year-over-year. The company's EPS came out at $7.54, significantly lower than estimates of $13.39. Operating income was $316 million, compared to $630 million last year, primarily due to the reserve adjustment.

Publication Date: Nov -02

📋 Highlights
  • Strategic Exit from Global Retail Insurance: Everest exited global retail insurance to redirect capital, with $4.4B gross written premium down 1% YoY.
  • Adverse Development Cover (ADC) Implementation: $1.2B ADC established for North America casualty reserves (2024 and prior), covering potential losses without a loss corridor.
  • Operating Income Decline: Operating income fell to $316M vs $630M YoY, driven by $361M net reserve strengthening in the Insurance segment.
  • Reinsurance Business Strength: Reinsurance gross written premium was $3.2B (-2% YoY), with a combined ratio of 87% and $29M favorable reserve development.
  • Capital Return Intentions: Mark Kociancic highlighted buyback plans at a discount to book value, with book value per share rising 15.2% to $366.22 since year-end 2024.

Reinsurance Performance

The Reinsurance business continued to perform well, with a combined ratio of 87% and gross written premium of $3.2 billion. The Reinsurance reserves are in a strong position, and the portfolio mix is developing favorably, with property and other short-tail lines increasing by almost 5% year-over-year. As Mark Kociancic stated, the reinsurance casualty book is complete, and there might be a couple of small studies, but they would be immaterial.

Strategic Actions

The company announced two strategic actions to position Everest as a more agile and profitable company. The exit from global retail insurance and the establishment of a comprehensive adverse development cover for its North America insurance division will help ensure prior poor underwriting decisions no longer overshadow strong current performance. The company expects these moves to yield improved returns on capital and value creation for shareholders.

Valuation and Outlook

With a Price-to-Book Ratio of 0.86, the company's valuation appears reasonable. The ROE is expected to be in the mid-teens over the cycle, but may be slightly below that in 2026. Analysts estimate next year's revenue growth at 2.7%. The company's decision to divest the retail business and focus on the core reinsurance business and Wholesale & Specialty insurance is expected to drive shareholder value and compounded book value per share growth.

Dividend Yield and Shareholder Returns

The company's Dividend Yield is 2.54%, providing a relatively stable source of return for shareholders. With the company's expectation of meaningful retained earnings accumulation, the floor for buybacks in Q4 and 2026 is expected to be similar to the first half of the year. The company's shareholders' equity ended the quarter at $15.4 billion, and book value per share ended the quarter at $366.22, an improvement of 15.2% from year-end 2024.

3. NewsRoom

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QualityKiosk Named a Leader in Everest Group's Quality Engineering (QE) Specialist Services PEAK Matrix® Assessment 2025

Dec -04

Source: businesswire.com

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Everest Announces Key Leadership Appointments

Dec -03

Source: businesswire.com

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Phenom is the Highest-Designated Leader and Star Performer in Everest Group's Candidate Engagement and Experience Platforms PEAK Matrix® Assessment 2025

Dec -01

Source: businesswire.com

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Market Today: Stocks Rally, Tesla Robotaxi and Nvidia Scrutiny

Nov -26

Source: gurufocus.com

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First Look: Campbell Soup fallout, Alphabet AI strength, Nvidia rebuttal

Nov -26

Source: gurufocus.com

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IntouchCX Recognized as a Leader in Everest Group's Americas PEAK Matrix® Assessment 2025

Nov -24

Source: businesswire.com

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EXL named a Leader in Everest Group's 2025 Clinical and Care Management Operations PEAK Matrix® Assessment

Nov -20

Source: globenewswire.com

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SS&C Blue Prism Recognized as an Everest Group IPAP PEAK Matrix® Leader

Nov -20

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.77%)

6. Segments

Reinsurance

Expected Growth: 6.5%

Everest Group, Ltd.'s 6.5% reinsurance growth is driven by increasing demand for risk management, expansion into emerging markets, and a growing need for specialty insurance products. Additionally, the company's strategic partnerships, improved underwriting capabilities, and favorable regulatory environments contribute to its growth momentum.

Insurance

Expected Growth: 7.5%

Everest Group, Ltd.'s 7.5% growth in insurance is driven by increasing demand for risk management, expansion into emerging markets, and strategic partnerships. Additionally, investments in digital transformation, enhanced customer experience, and a diversified product portfolio have contributed to this growth.

7. Detailed Products

IT Services

Everest Group's IT Services provide strategic guidance and operational support to help clients optimize their IT infrastructure, applications, and operations.

Business Process Outsourcing (BPO)

Everest Group's BPO services help clients outsource non-core business processes, such as finance and accounting, human resources, and customer service.

Digital Transformation

Everest Group's Digital Transformation services help clients develop and implement digital strategies to improve customer experience, increase efficiency, and reduce costs.

Sourcing and Vendor Management

Everest Group's Sourcing and Vendor Management services help clients develop and implement effective sourcing strategies and manage vendor relationships.

Global Sourcing

Everest Group's Global Sourcing services help clients develop and implement global sourcing strategies to reduce costs, improve efficiency, and mitigate risk.

Research and Advisory Services

Everest Group's Research and Advisory Services provide clients with actionable insights and advice on industry trends, best practices, and market developments.

8. Everest Group, Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Everest Group, Ltd. has a moderate threat of substitutes due to the availability of alternative services and products in the market.

Bargaining Power Of Customers

Everest Group, Ltd. has a high bargaining power of customers due to the presence of large and established clients who can negotiate prices and services.

Bargaining Power Of Suppliers

Everest Group, Ltd. has a low bargaining power of suppliers due to the availability of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

Everest Group, Ltd. has a moderate threat of new entrants due to the presence of barriers to entry and the company's established market position.

Intensity Of Rivalry

Everest Group, Ltd. operates in a highly competitive market with many established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 20.53%
Debt Cost 3.95%
Equity Weight 79.47%
Equity Cost 6.79%
WACC 6.21%
Leverage 25.83%

11. Quality Control: Everest Group, Ltd. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Main Street Capital

A-Score: 7.5/10

Value: 4.8

Growth: 6.0

Quality: 7.6

Yield: 9.0

Momentum: 8.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Conduit Holdings

A-Score: 6.5/10

Value: 6.8

Growth: 10.0

Quality: 6.6

Yield: 9.0

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
RenaissanceRe

A-Score: 6.0/10

Value: 8.1

Growth: 8.6

Quality: 7.4

Yield: 1.0

Momentum: 2.5

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
RGA

A-Score: 5.8/10

Value: 7.4

Growth: 6.4

Quality: 5.5

Yield: 4.0

Momentum: 2.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Everest Group

A-Score: 5.6/10

Value: 6.4

Growth: 6.6

Quality: 5.4

Yield: 4.0

Momentum: 2.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Brookfield Reinsurance

A-Score: 4.9/10

Value: 8.2

Growth: 6.2

Quality: 6.4

Yield: 0.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

309.97$

Current Price

309.97$

Potential

-0.00%

Expected Cash-Flows