Everest ve 2. čtvrtletí 2026 vytvořil 317 milionů USD ze zisku z upisování, i když hrubé předepsané pojistné meziročně kleslo o 7,1 %. V Treaty Reinsurance snížil pojistné o 9,1 % a udržel combined ratio na 88,5 %.
Key Takeaways Everest generated $317 million of underwriting income despite a 7.1% decline in gross written premiums. The Reinsurance Treaty posted an 88.5% combined ratio as Everest cut premiums and casualty exposure. Portfolio optimization is shifting capacity toward higher-return specialty and international opportunities. Everest Group, Ltd. (EG - Free Report) appears capable of sustaining underwriting profitability despite slower premium growth, supported by disciplined portfolio management, selective risk-taking and an improving business mix. In the second quarter of 2026, Everest’s core businesses generated $317 million of underwriting income and a 90% combined ratio, even as gross written premiums declined 7.1% year over year. This performance suggests management is willing to sacrifice volume when pricing or terms do not meet required return thresholds.
Underwriting discipline remains the key support. In Treaty Reinsurance, Everest reduced premiums by 9.1%, including a 19% reduction in casualty, while maintaining an 88.5% combined ratio. The decline in premiums alongside strong underwriting margins indicates that Everest is prioritizing risk-adjusted profitability over top-line growth. Management has been selectively reducing or exiting business that does not meet return requirements while reallocating capacity toward specialty areas such as data centers, construction and renewable energy, where risk-adjusted returns remain more attractive.
Everest’s margin strength is therefore shifting from favorable pricing toward underwriting discipline, portfolio optimization and business-mix improvement. Sustained underwriting profitability despite lower premiums would indicate that portfolio restructuring is producing a more profitable and capital-efficient book of business. If management continues to reduce underpriced casualty and property exposures and redeploy capacity toward higher-return specialty and international opportunities, improving underwriting margins could partially offset slower premium growth.
Overall, Everest’s strategy is increasingly focused on risk-adjusted profitability rather than premium growth. The principal risks include further deterioration in reinsurance pricing, elevated catastrophe losses and adverse casualty reserve development.
What About Its Peers?Chubb Limited’s (CB - Free Report) profitable underwriting directly increases its earnings. Chubb Limited benefits from both underwriting income and investment income. Consistent underwriting profits increase the amount of capital Chubb Limited can retain within the business. This supports balance-sheet strength, business expansion and investments in technology, data and AI.
RLI Corp.’s (RLI - Free Report) decentralized underwriting model supports strong underwriting profitability by giving individual business units significant autonomy to assess risks, price policies and select accounts based on specialized expertise. Underwriting profit is a core earnings driver and competitive advantage for RLI because it allows the company to generate profits directly from its insurance operations, rather than relying primarily on investment income.
EG’s Price PerformanceShares of EG have gained 9.3% in the past year, outperforming the industry.
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EG’s UndervaluationThe stock is overvalued compared with its industry. It is currently trading at a price-to-book value multiple of 0.93, lower than the industry average of 2.88. It carries a Value Score of A.
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Estimate Movement for EGThe Zacks Consensus Estimate for EG’s second-quarter and third-quarter 2026 EPS has moved down 7.3% and 0.8%, respectively, in the past 30 days. The Zacks Consensus Estimate for full-year 2026 EPS has moved up 1.4%, while the same for 2027 EPS has moved down 0.4% in the past 30 days.
The consensus estimate for EG’s 2026 and 2027 EPS indicates a year-over-year increase.
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EG stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Everest Group ve 2. čtvrtletí 2026 vykázala combined ratio 88,5 % v byznysu reasekurace na základě smluv. Akcie za poslední tři měsíce vzrostly o 5,2 %, ale zaostaly za odvětvím.
Key Takeaways Everest's Reinsurance Treaty business posted an 88.5% combined ratio in Q2 2026. Global Wholesale & Specialty delivered double-digit international growth across several specialty lines. Mount Logan's AUM reached $3.4 billion, up 89% from the beginning of 2025. Shares of Everest Group, Ltd. (EG - Free Report) have risen 5.2% in the past three months, underperforming the industry’s growth of 9.9%.
EG's shares have lagged the industry primarily due to a second-quarter earnings miss, declining premium volumes, reduced casualty business, softer property-catastrophe pricing and lower investment income, which have weighed on investor sentiment.
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Shares of other insurers like American International Group (AIG - Free Report) , Aegon NV (AEG - Free Report) and Assurant, Inc. (AIZ - Free Report) have gained 0.4%, 12.1% and 11.1%, respectively, over the past three months.
EG’s Attractive ValuationEG’s shares are trading at a discount compared with the industry. Its trailing 12-month price-to-book value of 0.91X is lower than the industry average of 2.97X. The insurer has a Value Score of A.
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Shares of other insurers like AIG, AEG and AIZ are also trading at a discount to the industry average.
EG’s Growth ProjectionThe Zacks Consensus Estimate for Everest Group’s 2026 earnings per share (EPS) is pinned at $53.13, indicating a year-over-year increase of 19.3%. The estimate for 2026 revenues is pegged at $15.76 billion, implying a year-over-year decline of 9.9%. The consensus estimate for 2027 EPS indicates an increase of 11.9%, while revenues indicate a decrease of 4.2% from the corresponding 2026 estimates.
EG’s earnings grew 18% in the last five years, better than the industry average of 10.7 %. The expected long-term earnings growth is pegged at 9.6%.
Mixed Analyst Sentiment on EGThe company has witnessed five upward earnings estimate revisions for 2026 over the past 60 days, against two downward revisions. For 2027, it has witnessed two upward and downward revisions. Thus, the Zacks Consensus Estimate for 2026 earnings has moved north by 0.6%, while the consensus mark for 2027 has moved south by 0.9% over the same period.
EG’s Return on Invested CapitalThe return on invested capital in the trailing 12 months was 8.9 %, better than the industry average of 2.2%, reflecting the company’s efficiency in utilizing funds to generate income.
What Drives EG?Reinsurance Treaty remains a key contributor to Everest Group’s underwriting profitability, supported by disciplined underwriting, favorable reserve development and strong risk selection. In the second quarter of 2026, the business delivered an 88.5% combined ratio, highlighting effective portfolio management. Meanwhile, the Global Wholesale & Specialty business continues to gain traction, supported by portfolio optimization, improved underwriting and growth in higher-margin specialty lines. The segment recorded double-digit international growth across financial lines, marine, political violence and select specialty property markets, thereby supporting diversification and profitable growth.
Although property-catastrophe pricing has moderated, EG continues to enhance portfolio quality by reducing exposure to lower-return casualty and retail insurance businesses while expanding higher-margin specialty and short-tail lines. Property-catastrophe rates declined about 10% for Everest Group versus a 15-20% decline across the industry during midyear renewals, highlighting its relative pricing resilience. The company also maintains conservative reserve practices, with favorable property reserve development and no material adverse U.S. casualty reserve movements, reflecting disciplined risk management and supporting earnings quality.
Everest Group is actively scaling operations in markets such as Mexico, Colombia, Australia and Italy, targeting regions with strong insurance demand and underpenetrated segments. Mexico and Colombia offer growth opportunities, driven by rising insurance adoption and demand for customized solutions. Australia and Italy provide exposure to developed markets with an increasing need for specialty and non-life coverage.
Everest Group's third-party capital platform continues to expand, with Mount Logan Capital Management’s AUM reaching approximately $3.4 billion as of July 1, 2026, up 89% from the beginning of 2025. The launch of Annapurna Re provides another avenue to transfer risk, support growth and enhance capital flexibility. Management expects to receive approximately $200 million in premiums per quarter.
The company also maintains a strong cash position and continues to enhance shareholder returns through regular dividends and an aggressive share repurchase program. It repurchased $395 million of shares during the second quarter and paid $78 million in dividends. Management expects a minimum quarterly buyback pace of $300 million throughout 2026.
Risks for EG StockProperty catastrophe reinsurance pricing continues to soften, which may weigh on premium growth and margins despite favorable policy terms.
Everest Group faces foreign exchange risk as it operates in currencies such as the euro, pound and Canadian dollar while reporting in U.S. dollars.
Everest Group remains vulnerable to large catastrophe losses and geopolitical events. Large natural disasters or geopolitical events could increase claims and adversely impact underwriting profitability.
ConclusionEverest Group is poised for growth in underwriting discipline, international insurance expansion, a growing third-party capital platform and strong financial flexibility. The attractive valuation and higher returns are the other positives. However, foreign exchange volatility, geopolitical tensions and catastrophe losses continue to be concerns. It is wise to adopt a wait-and-see approach towards this Zacks Rank #3 (Hold) stock presently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Everest uzavřel definitivní dohodu o prodeji své pojišťovací divize v Mexiku společnosti Fairfax Financial Holdings. Uzavření transakce se očekává v roce 2027.
HAMILTON, Bermuda--(BUSINESS WIRE)--Everest Group, Ltd. (“Everest” or “the Company”) (NYSE: EG), a global specialty reinsurance and insurance leader, today announced that it has entered into a definitive agreement to sell Compañía de Seguros Generales Everest México S.A. de C.V. (“Everest Mexico”) to Fairfax Financial Holdings Limited (“Fairfax”) (TSX: FFH and FFH.U).
“This agreement reflects the disciplined execution of our strategic priorities and continues the transformation of Everest into a more focused, higher-performing organization,” said Jim Williamson, President and Chief Executive Officer of Everest. “By sharpening our investment in our core Reinsurance and Global Wholesale and Specialty franchises, we are positioning the Company to capitalize on the most attractive opportunities across our portfolio. At the same time, we are pleased to have found a strong long-term owner in Fairfax for our Mexico business. I want to thank our colleagues in Mexico for their dedication and contributions to Everest, and I am confident they will continue to thrive as part of Fairfax.”
The transaction follows Everest's recent announcements of agreements to sell its Colombia and Canada insurance operations as part of its planned exit from its remaining commercial retail insurance businesses. It is expected to close in 2027, subject to customary regulatory approvals and closing conditions.
Advisors to the transaction include Guy Carpenter Capital & Advisory, a division of MMC Securities LLC, as financial advisor and Debevoise & Plimpton LLP as legal counsel to Everest.
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.
Forward-looking Statements
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 about the sale transaction, strategic repositioning and Commercial Retail Insurance operations exit plans 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 including the actual impact of the sale transaction, strategic repositioning and Commercial Retail Insurance operations exit plans 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.
Everest Group (EG - Free Report) came out with quarterly earnings of $14.85 per share, beating the Zacks Consensus Estimate of $14.59 per share. This compares to earnings of $17.36 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +1.78%. A quarter ago, it was expected that this reinsurance company would post earnings of $14.03 per share when it actually produced earnings of $16.08, delivering a surprise of +14.61%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Everest Group, which belongs to the Zacks Insurance - Multi line industry, posted revenues of $3.96 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.07%. This compares to year-ago revenues of $4.49 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Everest Group shares have added about 17.5% since the beginning of the year versus the S&P 500's gain of 8.5%.
What's Next for Everest Group?While Everest Group has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Everest Group was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $9.21 on $3.96 billion in revenues for the coming quarter and $52.86 on $15.89 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Multi line is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Horace Mann (HMN - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.
This provider of auto and homeowners' insurance for teachers and other educators is expected to post quarterly earnings of $0.67 per share in its upcoming report, which represents a year-over-year change of -36.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Horace Mann's revenues are expected to be $443.9 million, up 7.8% from the year-ago quarter.
Everest Group čeká za 2. čtvrtletí pokles tržeb na 4,09 miliardy USD i zisku na 14,59 USD na akcii, protože slabší pojistné tlaky a katastrofální škody převáží vyšší investiční výnosy a disciplinované upisování.
Key Takeaways EG is expected to post lower Q2 revenues and earnings amid weaker premium trends. Higher investment income and disciplined underwriting are likely to support results. Portfolio actions and catastrophe losses may pressure premiums and underwriting performance. Everest Group, Ltd. (EG - Free Report) is expected to register a decrease in both top and bottom lines when it reports second-quarter 2026 results on July 29, after the closing bell.
The Zacks Consensus Estimate for EG’s second-quarter revenues is pegged at $4.09 billion, indicating a 9% decrease from the year-ago reported figure.
The consensus estimate for earnings is pegged at $14.59 per share. The Zacks Consensus Estimate for EG’s second-quarter earnings has decreased 0.7% over the past 30 days. The estimate suggests a year-over-year decrease of 16%.
What the Zacks Model Unveils for EGOur proven model predicts an earnings beat for Everest Group this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat.
Earnings ESP: Everest Group has an Earnings ESP of +1.67%. This is because the Most Accurate Estimate of $14.83 is pegged higher than the Zacks Consensus Estimate of $14.59. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: EG carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Factors Likely to Shape EG’s Q2 ResultsPremium growth is likely to have been pressured by the completed exit from the Commercial Retail Insurance business and the ongoing runoff of legacy casualty exposures. We expect net written premiums to have declined 18.1% year over year to $3.4 billion in the second quarter.
The Insurance segment is likely to have been impacted by portfolio actions in specialty casualty lines and the sale of renewal rights. However, higher premiums from other specialty and accident & health businesses are expected to have partly offset the decline. We estimate premiums earned of $760.9 million in the to-be-reported quarter.
The Reinsurance segment is expected to have been affected by lower premiums in North America casualty pro rata and casualty excess-of-loss businesses. However, growth in the property and financial lines books is likely to have partly offset the weakness. We expect second-quarter premiums earned to have declined 16.3% year over year to $2.2 billion.
Net investment income is likely to have benefited from an increase in fixed maturities, a rise in income from limited partnerships, and an increase in income from other alternative investments. We expect net investment income to have been $561.5 million. The Zacks Consensus Estimate is pegged at $533.6 million.
Disciplined underwriting is expected to have supported underwriting profitability as management continues to prioritize business that meets return thresholds. However, catastrophe losses and competitive market conditions are likely to have partially offset these benefits, leading to a higher combined ratio. We expect the combined ratio to be 93.4 in the to-be-reported quarter. The Zacks Consensus Estimate for the metric is pegged at 93.7
We estimate the underwriting income from the Reinsurance segment to be $271.1 million in the to-be-reported quarter.
Total claims & expenses are likely to have decreased largely owing to lower incurred losses and loss adjustment expenses, commission, brokerage, taxes and fees, and other underwriting expenses. We expect the metric to be $3.4 billion.
Share buybacks in the to-be-reported quarter are anticipated to have provided a boost to the bottom line.
Other Stocks to ConsiderHere are some other insurance stocks you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:
Axis Capital Holdings Limited (AXS - Free Report) has an Earnings ESP of +3.82% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $3.23, indicating a year-over-year decrease of 1.8%.
AXS’ earnings beat estimates in each of the last four reported quarters.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +2.59% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $5.61, indicating a 5.5% year-over-year decrease.
ALL’s earnings beat estimates in each of the last four reported quarters.
Prudential Financial Inc. (PRU - Free Report) has an Earnings ESP of +0.45% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $3.39, indicating a 5.3% year-over-year decrease.
PRU’s earnings beat estimates in three of the last four reported quarters.
Everest Group má podle odhadů za čtvrtletí EPS 14,59 USD a výnosy 4,09 mld. USD, přičemž Earnings ESP +1,67 % naznačuje pravděpodobné překonání konsenzu.
Wall Street expects a year-over-year decline in earnings on lower revenues when Everest Group (EG - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis reinsurance company is expected to post quarterly earnings of $14.59 per share in its upcoming report, which represents a year-over-year change of -16%.
Revenues are expected to be $4.09 billion, down 9% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.14% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Everest Group?For Everest Group, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.67%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Everest Group will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Everest Group would post earnings of $14.03 per share when it actually produced earnings of $16.08, delivering a surprise of +14.61%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Everest Group appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAmong the stocks in the Zacks Insurance - Multi line industry, Slide Insurance Holdings, Inc. (SLDE - Free Report) , is soon expected to post earnings of $0.88 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +57.1%. This quarter's revenue is expected to be $370.8 million, up 41.7% from the year-ago quarter.
The consensus EPS estimate for Slide Insurance Holdings, Inc. has been revised 6.3% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +7.43%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Slide Insurance Holdings, Inc. will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Everest Group (EG) za poslední rok vzrostla o 17,7 % a obchoduje se blízko 52týdenního maxima 379,22 USD. Růst táhne vyšší ziskovost, vyšší investiční výnosy a zpětné odkupy akcií.
Key Takeaways Reinsurance Treaty and Global Wholesale & Specialty driving underwriting growth and profitability. Higher investment income and global expansion support earnings and long-term growth opportunities.EG enhances shareholder returns through dividends, share buybacks and disciplined capital management. Shares of Everest Group, Ltd. (EG - Free Report) have risen 17.7% in the past year, outperforming the industry’s growth of 6.1%. The stock closed at $377.89 on Monday, near its 52-week high of $379.22, reflecting investor confidence.
EG shares have risen because of stronger-than-expected earnings, a much better combined ratio, lower catastrophe losses, solid investment income and confidence in management's specialty insurance and reinsurance strategy.
1-Year Price Performance: EG, AEG, AIZ, AIG & Industry
Image Source: Zacks Investment Research
Shares of other insurers like American International Group (AIG - Free Report) , Aegon NV (AEG - Free Report) and Assurant, Inc. (AIZ - Free Report) have gained 9.4%, 12.5% and 17.6% respectively in the past year.
EG’s Attractive ValuationEG’s shares are trading at a discount compared with the industry. Its price-to-book value of 0.98X is lower than the industry average of 2.98X. The insurer has a Value Score of A.
Image Source: Zacks Investment Research
Shares of other insurers like American International, Aegon and Assurant are trading at a discount to the industry average.
EG’s Growth ProjectionThe Zacks Consensus Estimate for Everest Group’s 2026 earnings per share (EPS) is pinned at $53.05, indicating a year-over-year increase of 19.1%. The estimate for 2026 revenues is pegged at $15.94 billion, implying a year-over-year decline of 8.9%. The consensus estimate for 2027 EPS indicates an increase of 13.2%, while revenues indicate a decrease of 3.7% from the corresponding 2026 estimates.
EG’s earnings grew 18% in the last five years, better than the industry average of 10.7 %. The expected long-term earnings growth is pegged at 12.4%.
Optimistic Analyst Sentiment on EGThe company has witnessed four upward earnings estimate revisions for 2026 over the past 60 days, against two downward revisions. For 2027, it has witnessed three upward revisions and one downward revision. Thus, the Zacks Consensus Estimate for 2026 and 2027 earnings has moved north by 0.6% and north 0.2%, respectively, over the same period.
EG’s Return on Invested CapitalThe return on invested capital in the trailing 12 months was 9.7%, better than the industry average of 2.2%. This reflects the company’s efficiency in utilizing funds to generate income.
What Drives EG?Reinsurance Treaty remains Everest Group's key growth engine, supported by disciplined underwriting, favorable reserve development and strong underwriting profitability. The Global Wholesale & Specialty business continues to gain traction, benefiting from portfolio optimization, improved underwriting and growth in higher-margin specialty lines. Although property catastrophe pricing has moderated, management remains disciplined, deploying capital only where risk-adjusted returns meet its profitability thresholds, supporting sustainable long-term earnings growth.
Everest Group continues to enhance portfolio quality by reducing exposure to lower-return casualty and retail insurance businesses while expanding higher-margin specialty and short-tail lines. The company also maintains conservative reserve practices, with favorable property reserve development and no material adverse U.S. casualty reserve movements, reflecting disciplined risk management and supporting earnings quality.
Net investment income has been improving, supported by strong alternative investment returns and growth in the fixed-income portfolio. Higher limited partnership income and expanding assets under management are expected to support investment returns.
Everest Group is actively scaling operations in markets such as Mexico, Colombia, Australia, and Italy, targeting regions with strong insurance demand and underpenetrated segments. Mexico and Colombia offer growth opportunities, driven by rising insurance adoption and demand for customized solutions. Australia and Italy provide exposure to developed markets with an increasing need for specialty and non-life coverage.
Everest Group is improving capital efficiency through the sale of its Commercial Retail Insurance business and the runoff of legacy operations, while the expanding Mt. Logan platform supports additional underwriting capacity and returns. The company also maintains a strong cash position and continues to enhance shareholder returns through regular dividends and an aggressive share repurchase program. Management expects a minimum quarterly buyback pace of $300 million throughout 2026.
Risks for EG StockProperty catastrophe reinsurance pricing continues to soften, which may weigh on premium growth and margins despite favorable policy terms.
Everest Group faces foreign exchange risk as it operates in currencies such as the euro, pound, and Canadian dollar while reporting in U.S. dollars.
Everest Group remains vulnerable to large catastrophe losses and geopolitical events. Large natural disasters or geopolitical events could increase claims and adversely impact underwriting profitability.
ConclusionEverest Group is poised for growth in underwriting discipline, international insurance expansion, a rise in investment income and financial flexibility. However, foreign exchange volatility, geopolitical tensions and catastrophe losses continue to be concerns.
Coupled with attractive valuation, optimistic analyst sentiment and higher returns, it is wise to retain this Zacks Rank #3 (Hold) stock presently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways EG's net investment income delivered a 27% CAGR from 2020 to 2025, reflecting sustained portfolio growth. NII rose 15.5% year over year in first-quarter 2026, driven by fixed income and alternative investments. Growing insurance float, higher reinvestment yields, and disciplined portfolio management support earnings. Everest Group, Ltd. (EG - Free Report) has become one of the major beneficiaries of the higher interest rate environment, with net investment income (NII) serving as an increasingly important contributor to earnings alongside its insurance and reinsurance underwriting operations.
NII has become an increasingly valuable component of Everest Group's earnings profile. The combination of a growing insurance float, disciplined investment management, and a higher-yield investment environment strengthens the company's ability to generate consistent profits, complementing its underwriting performance and supporting long-term shareholder value creation.
A significant portion of the investment portfolio consists of fixed income securities, and smaller portions consist of equity securities and other investments, such as limited partnerships and other alternative investments. The metric should continue to gain from an increase in limited partnership income, higher income from fixed maturity investments, an increase in income from other alternative investments, higher income from short-term investments, and cash.
The insurer’s investment income has shown continuous improvement. The metric has delivered a five-year (2020-2025) CAGR of 27%.
NII increased 15.5% year over year for the three months ended March 31, 2026, largely driven by strong alternative asset returns, fixed income portfolio growth, and strong limited partnership returns.
EG's net investment income is primarily driven by the growth of its investment portfolio, higher reinvestment yields in a higher-rate environment, expanding insurance float, and disciplined portfolio management.
NII significantly boosts top-line growth and overall profitability for EG, complementing the company's underwriting operations. While insurance premiums are the primary source of revenue, NII provides a recurring stream of earnings generated from investing the company's insurance float and shareholders' capital.
What About Other Insurers?Chubb Limited's (CB - Free Report) net investment income is an important earnings contributor. The metric benefits from higher interest rates and stronger portfolio yields, providing a steady source of earnings beyond underwriting profits. This helps improve profitability, offset claim volatility and strengthen overall financial performance.
The Travelers Companies, Inc.’s (TRV - Free Report) net investment income is a material contributor to the company’s results of operations, consistently providing a reliable source of earnings that complements its underwriting activities. Net investment income acts as a second earnings engine for this property and casualty insurer after underwriting profit. Thus, even if underwriting profit weakens because of higher catastrophe losses, solid net investment income can help offset earnings pressure.
EG’s Price PerformanceShares of EG have gained 1.8% in the past year, outperforming the industry.
Image Source: Zacks Investment Research
EG’s UndervaluationThe stock is overvalued compared with its industry. It is currently trading at a price-to-book value multiple of 0.89, lower than the industry average of 2.78. It carries a Value Score of A.
Image Source: Zacks Investment Research
Estimate Movement for EGThe Zacks Consensus Estimate for EG’s second-quarter 2026 and third-quarter 2026 EPS has moved down 0.1% and 0.2%, respectively, in the past 30 days. The same for full-year 2026 EPS has moved up 0.9% in the past 30 days.
