Everest Group misses Q3 profit estimates on $268 million reserve development

Everest Group, Ltd. (EG) said in a regulatory filing that third-quarter 2026 net operating income was $290 million, or $7.62 per diluted share, compared with $316 million, or $7.54 per diluted share, a year earlier. Per-share net operating income missed the $8.93 consensus estimate compiled by Finnhub, while total revenues of $3.713 billion were in line with the $3.71 billion consensus estimate from the same source.

The company released the results on Oct. 28 in a news release furnished under Item 2.02 of Form 8-K. It said unfavorable prior-year reserve development of $268 million added 8.5 points to its group combined ratio.

Here's how the company did:

• Net operating income per diluted share: $7.62 vs. $7.54 a year earlier, against $8.93 expected, according to Finnhub
• Total revenues: $3.713 billion vs. $4.319 billion a year earlier, in line with $3.71 billion expected, according to Finnhub
• Net income: $233 million, or $6.12 per diluted share, vs. $255 million, or $6.09 per diluted share, a year earlier
• Net premiums earned: $3.156 billion vs. $3.855 billion a year earlier
• Combined ratio: 107.1% vs. 103.4% a year earlier

Underwriting results

Gross written premiums fell 14.5% to $3.742 billion from $4.375 billion a year earlier. The company said its Core businesses wrote $3.7 billion, down 4.0% on a comparable basis.

Gross written premiums in the Reinsurance Treaty segment fell 6.2% on a comparable basis to approximately $2.7 billion. Global Wholesale & Specialty rose 3.2% on a comparable basis to $948 million.

The Reinsurance Treaty combined ratio was 108.5%, against 87.0% a year earlier. In that segment, net adverse prior-year reserve development was $253 million, including gross casualty reserve strengthening of approximately $600 million. The company said pre-tax catastrophe losses across the group totaled $322 million, against $50 million a year earlier.

The Legacy segment posted an underwriting loss of $51 million, against $498 million a year earlier. The company said Legacy now includes its commercial retail insurance business following the announcement of the commercial retail insurance renewal rights transaction.

Investment income and capital return

Net investment income rose to $634 million from $540 million, which the company said was driven by higher alternative investment returns.

The company repurchased $474 million of common shares, or 1,268,158 shares, in the quarter, against none a year earlier. Year to date it has bought back $1.2 billion. Its quarterly dividend stayed at $2.00 per share.

Book value per common share was $381.04 at Sept. 30, 2026, against $379.83 at Dec. 31, 2025. The company said annualized total shareholder return was 14.2%.

President and CEO Jim Williamson said the company is "focused on executing our strategies across our Core businesses and proactively deploying capital, where share repurchases remain a top priority."

Guidance and call

The release contained no new financial guidance. The company will hold a conference call on Oct. 29 at 8:00 a.m. Eastern Time.