Everest Group, Ltd. (NYSE: EG), a global leader in property, casualty, and specialty reinsurance and insurance, reported its first quarter 2025 results on April 30, 2025, from Hamilton, Bermuda. This report reveals key financial metrics and operational insights that reflect the company’s performance and strategic direction in a challenging insurance environment marked by the highest Q1 catastrophe losses in over a decade.
Who: Everest Group, Ltd., global underwriting leader. What: First Quarter 2025 financial and operational results. When: Results announced for Q1 2025, April 30, 2025. Where: Based in Bermuda with global operations.
Net Income: \(210 million, translating to \)4.90 per diluted share, down from Q1 2024’s \(733 million (\)16.87 per diluted share).
Net Operating Income: \(276 million (\)6.45 per diluted share) compared to $709 million in Q1 2024.
Annualized Net Income Return on Equity (ROE): 5.7%, with Net Operating Income ROE at 7.5%, illustrating sustained shareholder value creation despite market challenges.
Gross Written Premiums reached $4.4 billion, with a year-over-year decline of 2.0% across the Group. This includes a 1.1% decrease in Reinsurance premiums and a marginal 0.1% decrease in Insurance premiums on a comparable constant dollar basis.
Combined Ratio rose significantly to 102.7% from 88.8% a year earlier, influenced primarily by extraordinary catastrophe losses.
Q1 2025 incurred pre-tax catastrophe losses totaled \(472 million, a substantial increase from \)85 million in the same period last year, primarily driven by California wildfires accounting for $442 million of the total. Despite these setbacks, the company’s disciplined catastrophe risk underwriting kept losses within expected ranges.
Combined ratios by segment: Group (102.7%), Reinsurance (103.3%), and Insurance (100.5%).
Attritional combined ratios, which exclude catastrophe impacts, stood at 90.2%, highlighting core underwriting efficiency.
Reinsurance segment gross premiums grew slightly by 1.4% on a comparable basis, led by double-digit expansion in property lines but offset by declines in casualty lines.
Insurance segment showed strategic portfolio shaping with a 19.0% growth in Property/Short Tail and 16.1% in Other Specialty lines, despite a fall in specialty casualty lines.
Shareholder equity increased from \(13.9 billion at end-2024 to \)14.1 billion as of March 31, 2025.
Book value per share rose to \(332.39 from \)322.97 at year-end 2024.
The company repurchased \(200 million worth of common shares in Q1 at an average price of \)348.43, indicating confidence in future prospects.
Dividends paid totaled $85 million for the quarter, maintaining robust shareholder returns.
Operating cash flow was \(928 million for Q1 2025, down from \)1.1 billion in Q1 2024, reflecting higher claims payments due to catastrophe losses.
Net investment income improved slightly to \(491 million from \)457 million year-over-year, supporting overall profitability.
Total invested assets and cash increased to $42.6 billion.
Jim Williamson, Everest’s President and CEO, emphasized the impact of the severe Q1 catastrophe losses and reassured investors of the company’s disciplined underwriting approach. He highlighted ongoing strategic initiatives in U.S. casualty remediation, property and specialty line growth, and capital deployment opportunities with attractive returns.
The Q1 2025 results continue themes from prior calls regarding rigorous risk management, focus on property and specialty insurance sectors, and cautious but opportunistic capital allocation amid economic uncertainties and natural calamities. The increase in net loss ratios aligns with expectations discussed regarding catastrophe exposures and industry-wide challenges.
Income Statement: Net income and underwriting results reflect a significant increase in catastrophe-related losses, affecting profitability and combined ratios.
Balance Sheet: Shareholder equity growth and strong book value per share indicate financial resilience.
Cash Flow Statement: Operating cash flow contraction aligns with higher loss payments but remains robust.
These financial results and operational insights underscore Everest Group’s ability to maintain strong underwriting discipline and shareholder value creation even amid heightened catastrophe risks and economic challenges.
For those who want to dive deeper, the full 8-K filing can be found here: Everest Q1 2025 8-K Report
Tags: EverestGroupFinance, InsuranceCatastropheImpact, ReinsuranceUnderwriting, Q12025FinancialResults, ShareholderValueGrowth