Open the filing on EDGAREverest Reports Second Quarter 2026 Results
Annualized 14.2% Net Income ROE and 14.9% Net Operating Income ROE
Annualized Total Shareholder Return of 16.8%
$559 million of Net Income and Combined Ratio of 92.0%
$317 million of Underwriting Income and Combined Ratio of 90.0% from our Core Businesses*
Repurchased $395 million of Common Shares During the Quarter
HAMILTON, Bermuda - (BUSINESS WIRE) - July 29, 2026 - Everest Group, Ltd. (NYSE: EG), a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions, today reported its second quarter 2026 results.
“Everest delivered a strong quarter driven by meaningful contributions from both underwriting income across our Core businesses and investments resulting in an annualized total shareholder return of 16.8%. The results this quarter show the strength of the franchise we have built and the benefits of our actions to strengthen underwriting performance as well as optimize the balance sheet.” said Jim Williamson, Everest President and CEO. “Our Reinsurance Treaty team delivered another excellent quarter. This was clear during the mid-year renewals, where the team’s world class execution resulted in meaningful outperformance on rate and terms versus the market. Our Global Wholesale & Specialty business continues to see the benefits from our strategy to expand the portfolio in specialty lines and targeted international markets while delivering margin expansion. As we look ahead, our focus is on profitably developing our Core businesses while effectively deploying capital, where share repurchases remain a top priority.”
Second Quarter 2026 Highlights
- Net income of $559 million, equal to $14.22 per diluted share versus second quarter 2025 net income of $680 million, equal to $16.10 per diluted share
- Net operating income of $585 million, equal to $14.85 per diluted share versus second quarter 2025 net operating income of $734 million, equal to $17.36 per diluted share
- Total Shareholder Return of 16.8% annualized; Annualized 14.2% Net Income ROE and 14.9% Net Operating Income ROE
- Book value per share of $398.83 at June 30, 2026 versus $379.83 at December 31, 2025
- Book value per share excluding unrealized gains (losses) on fixed maturity, available for sale securities of $407.67 at June 30, 2026 versus $379.70 at December 31, 2025
- Core businesses consist of our Reinsurance Treaty and Global Wholesale & Specialty segments
- $3.7 billion in gross written premium from Core businesses, a year-over-year decrease of 7.1%, which includes a 9.1% decrease for Reinsurance Treaty and a 1.0% decrease for Global Wholesale & Specialty on a comparable basis
- Combined ratio of 90.0% for Core businesses, which includes 88.5% for Reinsurance Treaty and 95.2% for Global Wholesale & Specialty
- Attritional combined ratios of 87.3% for Core businesses, which includes 85.4% for Reinsurance Treaty and 93.8% for Global Wholesale & Specialty
- Pre-tax underwriting income (loss) of $281 million for Group, $283 million for Reinsurance Treaty, $34 million for Global Wholesale & Specialty, and ($36) million for Legacy
- Net investment income of $523 million versus $532 million in the prior year quarter, driven by lower alternative investment returns.
* Core businesses consist of our Reinsurance Treaty and Global Wholesale & Specialty segments
Denotes annualized figure; represents Total Shareholder Return or "TSR". Annualized TSR is calculated as year to date growth in book value per common share outstanding excluding URA(D) on fixed maturity, available for sale securities plus year-to-date dividends per share.
Consolidated Financial Summary
| Quarter-to-Date | Year-to-Date | |
|---|
| June 30, | June 30, | June 30, | June 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| Net income (loss) | $559 | $680 | $1,213 | $890 |
| Net income (loss) per diluted common share | $14.22 | $16.10 | $30.45 | $20.93 |
| Net income (loss) return on average equity (annualized) | 14.2% | 18.2% | 15.5% | 11.9% |
| Net operating income (loss) | $585 | $734 | $1,232 | $1,010 |
| Net operating income (loss) per diluted common share | $14.85 | $17.36 | $30.95 | $23.75 |
| After-tax net operating income (loss) return on average equity (annualized) | 14.9% | 19.6% | 15.8% | 13.5% |
| Book value per common share outstanding | $398.83 | $358.08 | $398.83 | $358.08 |
| Book value per common share outstanding excluding URA(D) | $407.67 | $364.10 | $407.67 | $364.10 |
| Total Shareholder Return ("TSR") - Annualized | | | 16.8% | 14.8% |
| Weighted average common shares outstanding - diluted | 38.8 | 41.8 | 39.3 | 42.0 |
| Common shares outstanding | 38.7 | 41.9 | 38.7 | 41.9 |
| Total shareholders' equity | $15,430 | $15,019 | $15,430 | $15,019 |
| Total shareholders' equity excluding URA(D) | $15,772 | $15,272 | $15,772 | $15,272 |
| Net investment income | $523 | $532 | $1,091 | $1,023 |
| Total investments and cash | $44,863 | $44,300 | $44,863 | $44,300 |
| Total Capital Return | | | | |
| Common share repurchases | $395 | $200 | $725 | $400 |
| Number of common shares repurchased | 1.2 | 0.6 | 2.2 | 1.2 |
| Dividends per share | $2.00 | $2.00 | $4.00 | $4.00 |
| Dividends to shareholders | $78 | $84 | $158 | $169 |
| All values in USD millions except for per share amounts and percentages | | | | |
| Notes | | | | |
| Denotes non-GAAP financial measure. See "Comments on Non-GAAP Financial Measures" for an explanation and reconciliation. | |
The following information summarizes the Company’s underwriting results, on a Group consolidated basis, Core businesses and by reportable segment - Reinsurance Treaty, Global Wholesale & Specialty, and Legacy, with selected commentary on these results.
Underwriting Results - Everest Group
| Quarter-to-Date | Year-to-Date |
|---|
| June 30, | June 30, | | June 30, | June 30, | |
|---|
| 2026 | 2025 | Change | 2026 | 2025 | Change |
|---|
| Gross written premium | $3,772 | $4,680 | (19.4)% | $7,374 | $9,071 | (18.7)% |
| Net written premium | $3,037 | $4,119 | (26.3)% | $6,224 | $7,853 | (20.7)% |
| Net premiums earned | $3,490 | $3,991 | (12.6)% | $7,064 | $7,843 | (9.9)% |
| Loss Ratio: | | | | | | |
| Current year | 59.5% | 60.0% | (0.5) pts | 59.4% | 60.6% | (1.2) pts |
| Prior year | - % | 1.5% | (1.5) pts | (0.5)% | 0.8% | (1.3) pts |
| Catastrophe | 2.7% | 0.5% | 2.2 pts | 3.2% | 7.1% | (3.9) pts |
| Total Loss ratio | 62.2% | 61.9% | 0.3 pts | 62.1% | 68.4% | (6.3) pts |
| Commission and brokerage ratio | 23.3% | 22.0% | 1.3 pts | 23.2% | 21.7% | 1.5 pts |
| Other underwriting expenses | 6.4% | 6.4% | 0.1 pts | 6.2% | 6.3% | - pts |
| Combined ratio | 92.0% | 90.4% | 1.6 pts | 91.5% | 96.4% | (4.9) pts |
| Attritional combined ratio | 89.3% | 88.6% | 0.7 pts | 88.9% | 89.4% | (0.5) pts |
| Pre-tax net catastrophe losses | $94 | $20 | | $224 | $492 | |
| Pre-tax net unfavorable (favorable) prior year development | $ - | $59 | | $(33) | $59 | |
| All values in USD millions except for percentages | | | | | | |
| Notes | | | | | | |
| Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, and prior year development. Attritional ratios are non-GAAP financial measures. See "Comments on Non-GAAP Financial Measures" for an explanation and reconciliation. |
| Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums. |
Underwriting Results - Core Businesses
| Quarter-to-Date | Year-to-Date |
|---|
| June 30, | June 30, | | June 30, | June 30, | |
|---|
| 2026 | 2025 | Change | 2026 | 2025 | Change |
|---|
| Gross written premium | $3,678 | $3,908 | (5.9)% | $7,145 | $7,613 | (6.1)% |
| Net written premium | $2,965 | $3,550 | (16.5)% | $6,063 | $6,733 | (10.0)% |
| Net premiums earned | $3,167 | $3,454 | (8.3)% | $6,342 | $6,766 | (6.3)% |
| Loss Ratio: | | | | | | |
| Current year | 57.8% | 57.3% | 0.5 pts | 57.5% | 58.2% | (0.7) pts |
| Prior year | - % | 1.8% | (1.8) pts | (0.5)% | 0.9% | (1.4) pts |
| Catastrophe | 2.7% | (0.1)% | 2.8 pts | 3.2% | 7.8% | (4.6) pts |
| Total Loss ratio | 60.5% | 59.0% | 1.5 pts | 60.2% | 66.9% | (6.7) pts |
| Commission and brokerage ratio | 24.4% | 24.0% | 0.4 pts | 24.5% | 23.8% | 0.8 pts |
| Other underwriting expenses | 5.1% | 4.0% | 1.1 pts | 4.9% | 4.0% | 0.9 pts |
| Combined ratio | 90.0% | 87.0% | 3.0 pts | 89.7% | 94.7% | (5.0) pts |
| Attritional combined ratio | 87.3% | 85.6% | 1.7 pts | 87.0% | 86.9% | 0.1 pts |
| Pre-tax net catastrophe losses | $85 | $(4) | | $205 | $465 | |
| Pre-tax net unfavorable (favorable) prior year development | $ - | $63 | | $(33) | $61 | |
| All values in USD millions except for percentages | | | | | | |
| Notes | | | | | | |
| Denotes non-GAAP financial measure. See "Comments on Non-GAAP Financial Measures" for an explanation and reconciliation. |
| Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, and prior year development. Attritional ratios are non-GAAP financial measures. See "Comments on Non-GAAP Financial Measures" for an explanation and reconciliation. |
| Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums. |
Underwriting Results - Reinsurance Treaty Segment
| Quarter-to-Date | Year-to-Date |
|---|
| June 30, | June 30, | | June 30, | June 30, | |
|---|
| 2026 | 2025 | Change | 2026 | 2025 | Change |
|---|
| Gross written premium | 2,720 | 2,951 | (7.8)% | 5,394 | 5,885 | (8.3)% |
| Net written premium | 2,228 | 2,785 | (20.0)% | 4,632 | 5,313 | (12.8)% |
| Net premiums earned | 2,459 | 2,726 | (9.8)% | 4,915 | 5,306 | (7.4)% |
| Loss Ratio: | | | | | | |
| Current year | 57.1% | 55.4% | 1.7 pts | 56.9% | 56.6% | 0.2 pts |
| Prior year | - % | 2.2% | (2.2) pts | (0.7)% | 1.1% | (1.8) pts |
| Catastrophe | 3.1% | - % | 3.1 pts | 3.4% | 9.6% | (6.2) pts |
| Total Loss ratio | 60.1% | 57.5% | 2.6 pts | 59.5% | 67.3% | (7.8) pts |
| Commission and brokerage ratio | 25.5% | 25.0% | 0.5 pts | 25.6% | 24.8% | 0.8 pts |
| Other underwriting expenses | 2.9% | 2.3% | 0.6 pts | 2.7% | 2.3% | 0.4 pts |
| Combined ratio | 88.5% | 84.9% | 3.6 pts | 87.8% | 94.5% | (6.7) pts |
| Attritional combined ratio | 85.4% | 83.2% | 2.2 pts | 85.2% | 85.0% | 0.2 pts |
| Pre-tax net catastrophe losses | 75 | - | | 165 | 446 | |
| Pre-tax net prior year reserve development | - | 59 | | (33) | 59 | |
| All values in USD millions except for percentages | | | | | | |
- Gross written premiums decreased 9.1% versus the prior year quarter on a comparable basis (constant dollar basis and excluding reinstatement premiums), to approximately $2.7 billion.
- Reduction in gross written premiums was primarily led by 25.0% decrease in Casualty XOL, 22.8% in Casualty Pro-Rata, 9.2% in Property Non-Catastrophe XOL, and 6.8% in Property Catastrophe XOL, when adjusting for reinstatement premiums partially offset by a 3.4% increase Property Pro-Rata.
- Attritional loss ratio increased 140 basis points over second quarter 2025 to 57.1%, while the attritional combined ratio increased 220 basis points to 85.4% versus a year ago.
- Excluding the impact of elevated non-catastrophe weather losses, the attritional loss ratio would have been 54.4% and the attritional combined ratio would have been 82.7%.
- Pre-tax catastrophe losses were $75 million net of estimated recoveries and reinstatement premiums, driven primarily by losses associated with the Iran War and a number of mid-sized events globally. Pre-tax catastrophe losses were benign in the prior-year quarter.
Denotes non-GAAP financial measure. See "Comments on Non-GAAP Financial Measures" for an explanation and reconciliation.
Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, and prior year development. Attritional ratios are non-GAAP financial measures. See "Comments on Non-GAAP Financial Measures" for an explanation and reconciliation.
Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums.
Underwriting Results - Global Wholesale & Specialty Segment
| Quarter-to-Date | Year-to-Date |
|---|
| June 30, | June 30, | | June 30, | June 30, | |
|---|
| 2026 | 2025 | Change | 2026 | 2025 | Change |
|---|
| Gross written premium | $958 | $957 | 0.1% | $1,751 | $1,728 | 1.3% |
| Net written premium | $738 | $765 | (3.5)% | $1,430 | $1,420 | 0.7% |
| Net premiums earned | $709 | $728 | (2.6)% | $1,427 | $1,460 | (2.2)% |
| Loss Ratio: | | | | | | |
| Current year | 60.6% | 64.7% | (4.1) pts | 59.7% | 63.8% | (4.1) pts |
| Prior year | - % | 0.6% | (0.6) pts | - % | 0.1% | (0.1) pts |
| Catastrophe | 1.4% | (0.6)% | 2.0 pts | 2.8% | 1.3% | 1.5 pts |
| Total Loss ratio | 62.0% | 64.7% | (2.7) pts | 62.5% | 65.2% | (2.7) pts |
| Commission and brokerage ratio | 20.6% | 20.3% | 0.3 pts | 20.9% | 19.9% | 1.0 pts |
| Other underwriting expenses | 12.6% | 10.2% | 2.4 pts | 12.6% | 10.2% | 2.4 pts |
| Combined ratio | 95.2% | 95.2% | - pts | 96.0% | 95.4% | 0.6 pts |
| Attritional combined ratio | 93.8% | 94.9% | (1.1) pts | 93.2% | 93.7% | (0.5) pts |
| Pre-tax net catastrophe losses | $10 | $(4) | | $40 | $19 | |
| Pre-tax net prior year reserve development | $ - | $4 | | $ - | $2 | |
| All values in USD millions except for percentages | | | | | | |
- Gross written premiums decreased 1.0% on a comparable basis (constant dollar basis and excluding reinstatement premiums), to approximately $958 million as we continued to improve the mix and quality of the portfolio.
- Reduction in gross written premiums was led by 16.7% decrease in Workers' Compensation and 7.2% in Specialty Casualty almost completely offset by 10.1% increase in Other Specialty, 8.6% in Professional Liability, and 2.9% in Accident and Health.
- Attritional loss ratio improved 390 basis points over second quarter 2025 to 60.6%, while the attritional combined ratio improved 110 basis points to 93.8% versus a year ago.
- Total expense ratio increased 270 basis points to 33.2% due to mix and lower earned premium.
- Pre-tax catastrophe losses were $10 million, net of estimated recoveries and reinstatement premiums, an increase versus the prior year quarter.
Denotes non-GAAP financial measure. See "Comments on Non-GAAP Financial Measures" for an explanation and reconciliation.
Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, and prior year development. Attritional ratios are non-GAAP financial measures. See "Comments on Non-GAAP Financial Measures" for an explanation and reconciliation.
Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums.
Underwriting Results - Legacy Segment
| Quarter-to-Date | Year-to-Date |
|---|
| June 30, | June 30, | June 30, | June 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| Gross written premium | $94 | $772 | $229 | $1,459 |
| Net written premium | $72 | $569 | $161 | $1,120 |
| Net premiums earned | $323 | $538 | $722 | $1,078 |
| Incurred losses and LAE | | | | |
| Current year | 244 | 413 | 550 | 816 |
| Prior year | - | (4) | - | (2) |
| Catastrophes | 9 | 24 | 19 | 27 |
| Total incurred losses and LAE | 253 | 433 | 569 | 841 |
| Commission, brokerage, taxes and fees | 41 | 50 | 82 | 95 |
| Other underwriting expenses | 64 | 116 | 129 | 219 |
| Underwriting income (loss) | $(36) | $(63) | $(58) | $(77) |
| All values in USD millions | | | | |
- Our Legacy segment now encompasses our commercial retail insurance business following the announcement of the commercial retail insurance renewal rights transaction.
- Gross written premiums reflect a limited number of renewed and new policies written on the Company's paper related to the commercial retail insurance business and by the purchaser of the sports and leisure business, for a finite period post-closing.
- Net premiums earned in the quarter were largely driven by the commercial retail insurance business, which are diminishing at an accelerated pace.
Denotes non-GAAP financial measure. See "Comments on Non-GAAP Financial Measures" for an explanation and reconciliation.
Forward-looking statements notice
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 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 that include, but are not limited to, the impact of general economic conditions and conditions affecting the insurance and reinsurance industry, the adequacy of our reserves, our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, our ability to execute divestitures, obtain regulatory approvals and effectuate strategic transactions, including the sale of our retail commercial insurance business, investment market and investment income fluctuations, trends in insured and paid losses, catastrophes, pandemics, regulatory developments and legal uncertainties, expenses related to divestitures and other factors described in our SEC filings, including but not limited to our latest Annual Report on Form 10-K and periodic reports on Form 10-Q. 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.
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.
A conference call discussing the results will be held at 8:00 a.m. Eastern Time on Thursday July 30, 2026. The call will be available on the Internet through the Company’s website at https://investors.everestglobal.com/overview.
Recipients are encouraged to visit the Company’s website to view supplemental financial information on the Company’s results. The supplemental information is located at www.everestglobal.com in the “Investors/Financials/Quarterly Results” section of the website. The supplemental financial information may also be obtained by contacting the Company directly.
Comments on Non-GAAP Financial Measures
In this Press Release, the Company has included certain non-GAAP financial measures, including after-tax net operating income (loss), after-tax net operating income (loss) per diluted share, attritional loss ratio, attritional combined ratio, gross written premiums presented on a comparable basis, net operating income return on equity ("ROE"), underwriting income, and book value per common share outstanding excluding net unrealized appreciation (depreciation) on fixed maturity, available for sale securities ("URA(D)"). The Company has also presented results of its "Core" businesses, consisting of the Reinsurance Treaty and Global Wholesale & Specialty segments (excluding the Legacy segment), to reflect the businesses that are the Company's primary strategic focus. The Company presents these non-GAAP financial measures to facilitate a deeper understanding of the profitability drivers of our business, results of operations, financial condition and liquidity. The Company believes that such measures are important to investors and other interested persons, and that these measures are a useful supplement to GAAP information concerning the Company’s performance. These measures may not, however, be comparable to similarly titled measures used by companies within or outside of the insurance industry. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, or superior to, the Company’s financial measures prepared in accordance with generally accepted accounting principles ("GAAP").
A reconciliation of the non-GAAP financial measures to the most comparable corresponding GAAP financial measures is included below.
After-tax net operating income (loss) and after-tax net operating income (loss) per diluted share
After-tax net operating income (loss) (also referred to in this release as net operating income) consists of net income (loss) excluding after-tax net gains (losses) on investments and after-tax net foreign exchange income (expense), as shown below:
| (Dollars in millions, except per share amounts) | Three Months Ended June 30, | Six Months Ended June 30, |
| | 2026 | | | 2025 | | | 2026 | | | 2025 | |
| (unaudited) | (unaudited) |
| Amount | | Per Diluted Share | Amount | | Per Diluted Share | Amount | | Per Diluted Share | Amount | | Per Diluted Share |
| After-tax net operating income (loss) | $585 | | $14.85 | $734 | | $17.36 | $1,232 | | $30.95 | $1,010 | | $23.75 |
| After-tax net gains (losses) on investments | (8) | | (0.20) | (3) | | (0.08) | (14) | | (0.35) | (10) | | (0.23) |
| After-tax net foreign exchange income (expense) | (17) | | (0.44) | (50) | | (1.18) | (6) | | (0.14) | (110) | | (2.59) |
| Net income (loss) | $559 | | $14.22 | $680 | | $16.10 | $1,213 | | $30.45 | $890 | | $20.93 |
| (Some amounts may not reconcile due to rounding.) |
Although net gains (losses) on investments and net foreign exchange income (expense) are an integral part of the Company’s insurance operations, the determination of net gains (losses) on investments and foreign exchange income (expense) is independent of the insurance underwriting process. The Company believes that the level of net gains (losses) on investments and net foreign exchange income (expense) for any particular period are not indicative of the performance of the underlying business in that particular period. Providing only a GAAP presentation of net income (loss) makes it more difficult for users of the financial information to evaluate the Company’s success or failure in its basic business and may lead to incorrect or misleading assumptions and conclusions. The Company understands that the equity analysts who follow the Company focus on after-tax net operating income (loss) in their analyses for the reasons discussed above. The Company provides after-tax net operating income (loss) to investors so that they have what management believes to be a useful supplement to GAAP information concerning the Company’s performance.
Attritional Loss Ratio and Attritional Combined Ratio
The loss ratio is calculated as the sum of total incurred losses and loss adjustment expenses, divided by net premiums earned. The combined ratio is calculated as the sum of total incurred losses and loss adjustment expenses, commission and brokerage expenses, and other underwriting expenses, divided by net premiums earned. The attritional loss ratio and attritional combined ratio are defined as the loss ratio and the combined ratio, respectively, adjusted to exclude catastrophe losses, net catastrophe reinstatement premiums, and prior year development. The Company believes the attritional ratios are useful to management and investors because the adjusted ratios provide for better comparability and more accurately measure the Company’s underlying underwriting performance. Core businesses consist of the Reinsurance Treaty and Global Wholesale & Specialty segments (excluding the Legacy segment) to reflect the businesses that are the Company's primary strategic focus. The following tables are a reconciliation of the loss ratio and attritional loss ratio, and the combined ratio and attritional combined ratio for the periods noted:
| Three Months Ended June 30, |
|---|
| | | | 2026 | | | | | 2025 | |
| (unaudited) |
| Reinsurance Treaty | Global Wholesale & Specialty | Core Businesses | | Group | Reinsurance Treaty | Global Wholesale & Specialty | Core Businesses | | Group |
| Loss ratio | 60.1% | 62.0% | 60.5% | | 62.2% | 57.5% | 64.7% | 59.0% | | 61.9% |
| Adjustment for catastrophe losses | (3.1)% | (1.4)% | (2.7)% | | (2.7)% | - % | 0.6% | 0.1% | | (0.5)% |
| Adjustment for reinstatement premiums | - % | - % | - % | | - % | - % | - % | - % | | - % |
| Adjustment for prior year development | - % | - % | - % | | - % | (2.2)% | (0.6)% | (1.8)% | | (1.5)% |
| Adjustment for other items | - % | - % | - % | | - % | 0.3% | (0.2)% | 0.2% | | 0.2% |
| Attritional loss ratio | 57.1% | 60.6% | 57.8% | | 59.5% | 55.7% | 64.5% | 57.5% | | 60.1% |
| (Some amounts may not reconcile due to rounding.) |
| Three Months Ended June 30, |
|---|
| | | | 2026 | | | | | 2025 | |
| (unaudited) |
| Reinsurance Treaty | Global Wholesale & Specialty | Core Businesses | | Group | Reinsurance Treaty | Global Wholesale & Specialty | Core Businesses | | Group |
| Combined ratio | 88.5% | 95.2% | 90.0% | | 92.0% | 84.9% | 95.2% | 87.0% | | 90.4% |
| Adjustment for catastrophe losses | (3.1)% | (1.4)% | (2.7)% | | (2.7)% | - % | 0.6% | 0.1% | | (0.5)% |
| Adjustment for reinstatement premiums | - % | - % | - % | | - % | - % | - % | - % | | - % |
| Adjustment for prior year development | - % | - % | - % | | - % | (2.2)% | (0.6)% | (1.8)% | | (1.5)% |
| Adjustment for other items | - % | - % | - % | | - % | 0.4% | (0.3)% | 0.3% | | 0.3% |
| Attritional combined ratio | 85.4% | 93.8% | 87.3% | | 89.3% | 83.2% | 94.9% | 85.6% | | 88.6% |
| (Some amounts may not reconcile due to rounding.) |
Gross Written Premium on a Comparable Basis
The Company has included in this Press Release certain changes in gross written premium on a comparable basis, reflecting constant currency basis and excluding reinstatement premiums. Constant currency basis excludes the impact of foreign exchange rates. The Company provides change in gross written premium on a comparable basis to investors so that they have what management believes to be a useful supplement to GAAP information concerning the Company’s performance. Core businesses consist of the Reinsurance Treaty and Global Wholesale & Specialty segments (excluding the Legacy segment) to reflect the businesses that are the Company's primary strategic focus. The following tables are a reconciliation of gross written premium and period-over-period changes on a GAAP basis to the non-GAAP comparable basis for the periods noted:
| (Dollars in millions) | Quarter-to-Date |
| June 30, 2026 | | June 30, 2025 | | Change | |
| (unaudited) |
| Gross Written Premium | | Gross Written Premium | | % Impact |
| Group | $3,772 | | $4,680 | | (19.4)% |
| Adjustment for gross CAT reinstatement premiums | - | | (2) | | - % |
| Adjustment for foreign exchange effect | - | | 61 | | (1.0)% |
| Group (comparable basis) | $3,772 | | $4,739 | | (20.4)% |
| Core Businesses | $3,678 | | $3,908 | | (5.9)% |
| Adjustment for gross CAT reinstatement premiums | - | | (2) | | 0.1% |
| Adjustment for foreign exchange effect | - | | 54 | | (1.3)% |
| Core Businesses (comparable basis) | $3,678 | | $3,959 | | (7.1)% |
| Reinsurance Treaty | $2,720 | | $2,951 | | (7.8)% |
| Adjustment for gross CAT reinstatement premiums | - | | (2) | | 0.1% |
| Adjustment for foreign exchange effect | - | | 43 | | (1.3)% |
| Reinsurance Treaty (comparable basis) | $2,720 | | $2,992 | | (9.1)% |
| Global Wholesale & Specialty | $958 | | $957 | | 0.1% |
| Adjustment for gross CAT reinstatement premiums | - | | - | | - % |
| Adjustment for foreign exchange effect | - | | 10 | | (1.1)% |
| Global Wholesale & Specialty (comparable basis) | $958 | | $967 | | (1.0)% |
| Legacy | $94 | | $772 | | (87.9)% |
| Adjustment for gross CAT reinstatement premiums | - | | - | | - % |
| Adjustment for foreign exchange effect | - | | 8 | | (0.1)% |
| Legacy (comparable basis) | $94 | | $780 | | (88.0)% |
| (Some amounts may not reconcile due to rounding.) | | | | | |
Net Operating Income Return On Equity ("ROE")
Net Operating Income ROE (also referred to as operating ROE) is calculated by dividing after-tax net operating income (loss) by average shareholders' equity, adjusted for average net unrealized depreciation (appreciation) of fixed maturity, available for sale securities. A reconciliation of net income, the most comparable GAAP measure, to net operating income is presented above. The Company believes net operating income ROE is a useful measure for management and investors as it allows for better comparability and removes variability when assessing the results of operations. A reconciliation of Net Operating Income ROE and Net Income ROE is shown below.
| Quarter-to-Date | | Year-to-Date |
|---|
| (Dollars in millions) | June 30, | | June 30, | | June 30, | | June 30, |
| 2026 | | 2025 | | 2026 | | 2025 | |
| (unaudited) | | (unaudited) |
| Beginning of period shareholders' equity | $15,291 | | $14,140 | | $15,461 | | $13,875 |
| Add: Net unrealized depreciation (appreciation) of fixed maturity, available for sale securities | 369 | | 561 | | (5) | | 849 |
| Adjusted beginning of period shareholders' equity | $15,660 | | $14,700 | | $15,455 | | $14,724 |
| End of period shareholders' equity | $15,430 | | $15,019 | | $15,430 | | $15,019 |
| Add: Net unrealized depreciation (appreciation) of fixed maturity, available for sale securities | 342 | | 252 | | 342 | | 252 |
| Adjusted end of period shareholders' equity | $15,772 | | $15,272 | | $15,772 | | $15,272 |
| Average adjusted shareholders' equity | $15,716 | | $14,986 | | $15,614 | | $14,998 |
| After-tax net operating income (loss) | $585 | | $734 | | $1,232 | | $1,010 |
| After-tax net gains (losses) on investments | (8) | | (3) | | (14) | | (10) |
| After-tax foreign exchange income (expense) | (17) | | (50) | | (6) | | (110) |
| Net income (loss) | $559 | | $680 | | $1,213 | | $890 |
| Return on equity (annualized) | | | | | | | |
| After-tax net operating income (loss) | 14.9% | | 19.6% | | 15.8% | | 13.5% |
| After-tax net gains (losses) on investments | (0.2)% | | (0.1)% | | (0.2)% | | (0.1)% |
| After-tax foreign exchange income (expense) | (0.4)% | | (1.3)% | | (0.1)% | | (1.5)% |
| Net income (loss) | 14.2% | | 18.2% | | 15.5% | | 11.9% |
| (Some amounts may not reconcile due to rounding.) | | | | | | | |
Underwriting Income
Underwriting income is calculated as net premiums earned, less (1) incurred losses and loss adjustment expenses, (2) commission, brokerage, taxes and fees, and (3) other underwriting expenses. Net income (loss) is the most comparable GAAP measure. The Company believes underwriting income is a useful measure for management and investors when assessing the performance of the Company's reinsurance and insurance business segments. Core businesses consist of the Reinsurance Treaty and Global Wholesale & Specialty segments (excluding the Legacy segment) to reflect the businesses that are the Company's primary strategic focus. A reconciliation of Underwriting Income and Net Income is shown below.
| Quarter-to-Date |
|---|
| (Dollars in millions) | June 30, 2026 | June 30, 2025 |
| (unaudited) |
| Reinsurance Treaty | Global Wholesale & Specialty | Core Businesses | Legacy | Group | Reinsurance Treaty | Global Wholesale & Specialty | Core Businesses | Legacy | Group |
| Net premiums earned | $2,459 | $709 | $3,167 | $323 | $3,490 | $2,726 | $728 | $3,454 | $538 | $3,991 |
| Less: Incurred losses and LAE | 1,478 | 439 | 1,917 | 253 | 2,170 | 1,568 | 471 | 2,039 | 433 | 2,472 |
| Less: Commission, brokerage, taxes and fees | 626 | 146 | 773 | 41 | 814 | 682 | 148 | 830 | 50 | 880 |
| Less: Other underwriting expenses | 71 | 89 | 161 | 64 | 225 | 64 | 74 | 138 | 116 | 254 |
| Underwriting income (loss) | $283 | $34 | $317 | $(36) | $281 | $413 | $35 | $448 | $(63) | $385 |
| Net investment income | | | | | 523 | | | | | 532 |
| Net gains (losses) on investments | | | | | (8) | | | | | (5) |
| Corporate expenses | | | | | (33) | | | | | (31) |
| Interest, fee and bond issue cost amortization expense | | | | (36) | | | | | (38) |
| Other income (expense) | | | | | (45) | | | | | (27) |
| Income tax benefit (expense) | | | | | (124) | | | | | (135) |
| Net income (loss) | | | | | $559 | | | | | $680 |
| (Some amounts may not reconcile due to rounding.) | | | | | | | | | |
Book value per common share outstanding excluding URA(D)
Book value per common share outstanding excluding net unrealized appreciation (depreciation) of fixed maturity, available for sale securities ("URA(D)") is calculated as reported shareholders' equity less URA(D), divided by common shares outstanding. Book value per share is the most comparable GAAP measure. The Company believes this metric is useful to management and investors as it shows the value of shareholder returns on a per share basis after eliminating the variability of investments held at fair value. Please see the table below for a reconciliation of book value per common share outstanding (excluding URA(D)) and book value per share.
Annualized Total Shareholder Return
Annualized TSR ("TSR") is calculated as year-to-date growth in book value per common share outstanding (excluding URA(D)) plus year-to-date dividends per share. As further discussed above, book value per common share outstanding (excluding URA(D)) is a non-GAAP measure. Please see the table below for a reconciliation of book value per common share outstanding (excluding URA(D)) and book value per share.
| As of |
|---|
| June 30, | June 30, |
|---|
| 2026 | 2025 |
|---|
| End of period shareholders' equity | $15,430 | $15,019 |
| Net URA(D) | 342 | 252 |
| Adjusted end of period shareholders' equity | $15,772 | $15,272 |
| Common shares outstanding | 38.7 | 41.9 |
| Book value per common share outstanding | $398.83 | $358.08 |
| Less: URA(D) of fixed maturity, available for sale securities | (8.84) | (6.02) |
| Book value per common share outstanding (excluding URA(D)) | $407.67 | $364.10 |
| Total Shareholder Return (TSR) | 16.8% | 14.8% |
| (Some amounts may not reconcile due to rounding.) | | |
--Financial Details Follow--
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
| Three Months Ended June 30, | Six Months Ended June 30, |
|---|
| (In millions of U.S. dollars, except per share amounts) | 2026 | 2025 | | 2026 | | 2025 |
| (unaudited) | (unaudited) |
| REVENUES: | | | | |
| Premiums earned | $3,490 | $3,991 | $7,064 | | $7,843 | |
| Net investment income | 523 | 532 | 1,091 | | 1,023 | |
| Net gains (losses) on investments | (8) | (5) | (17) | | (12) | |
| Other income (expense) | (45) | (27) | (108) | | (100) | |
| Total revenues | 3,961 | 4,491 | 8,029 | | 8,754 | |
| CLAIMS AND EXPENSES: | | | | |
| Incurred losses and loss adjustment expenses | 2,170 | 2,472 | 4,388 | | 5,366 | |
| Commission, brokerage, taxes and fees | 814 | 880 | 1,638 | | 1,704 | |
| Other underwriting expenses | 225 | 254 | 441 | | 492 | |
| Corporate expenses | 33 | 31 | 71 | | 52 | |
| Interest, fees and bond issue cost amortization expense | 36 | 38 | 71 | | 76 | |
| Total claims and expenses | 3,278 | 3,676 | 6,609 | | 7,690 | |
| INCOME (LOSS) BEFORE TAXES | 683 | 815 | 1,420 | | 1,064 | |
| Income tax expense (benefit) | 124 | 135 | 207 | | 173 | |
| NET INCOME (LOSS) | $559 | $680 | $1,213 | | $890 | |
| Other comprehensive income (loss), net of tax: | | | | |
| Unrealized appreciation (depreciation) ("URA(D)") of securities arising during the period | 15 | 301 | (360) | | 585 | |
| Reclassification adjustment for realized losses (gains) included in net income (loss) | 12 | 7 | 13 | | 12 | |
| Total URA(D) of securities arising during the period | 27 | 308 | (347) | | 597 | |
| Foreign currency translation and other adjustments | 3 | 164 | (32) | | 228 | |
| Reclassification adjustment for amortization of net (gain) loss included in net income (loss) | - | (8) | (1) | | (8) | |
| Total benefit plan net gain (loss) for the period | - | (8) | (1) | | (8) | |
| Total other comprehensive income (loss), net of tax | 30 | 465 | (380) | | 817 | |
| COMPREHENSIVE INCOME (LOSS) | $589 | $1,145 | $832 | | $1,707 | |
| EARNINGS PER COMMON SHARE: | | | | |
| Basic | $14.22 | $16.10 | $30.45 | | $20.93 | |
| Diluted | 14.22 | 16.10 | 30.45 | | 20.93 | |
CONSOLIDATED BALANCE SHEETS
| June 30, | December 31, |
|---|
| (In millions of U.S. dollars, except par value per share) | 2026 | 2025 |
| (unaudited) | |
| ASSETS: | | |
| Fixed maturities - available for sale, at fair value | | |
| (amortized cost: 2026, $34,912; 2025, $34,620, credit allowances: 2026, $(64); 2025, $(68)) | $34,445 | $34,573 |
| Fixed maturities - held to maturity, at amortized cost | | |
| (fair value: 2026, $568; 2025, $576, net of credit allowances: 2026, $(8); 2025, $(6)) | 568 | 567 |
| Equity securities, at fair value | 185 | 180 |
| Other invested assets | 6,044 | 5,796 |
| Short-term investments | 2,503 | 2,994 |
| Cash | 1,117 | 1,318 |
| Total investments and cash | 44,863 | 45,429 |
| Accrued investment income | 411 | 436 |
| Premiums receivable (net of credit allowances: 2026, $(99); 2025, $(94)) | 5,595 | 5,727 |
| Reinsurance loss recoverables (net of credit allowances: 2026, $(61); 2025, $(57)) | 5,092 | 5,110 |
| Funds held by reinsureds | 1,408 | 1,326 |
| Deferred acquisition costs | 1,454 | 1,546 |
| Prepaid reinsurance premiums | 710 | 653 |
| Income tax asset, net | 952 | 915 |
| Other assets (net of credit allowances: 2026, $(17); 2025, $(17)) | 1,682 | 1,372 |
| TOTAL ASSETS | $62,167 | $62,514 |
| LIABILITIES: | | |
| Reserve for losses and loss adjustment expenses | 34,735 | 34,312 |
| Unearned premium reserve | 6,436 | 7,275 |
| Funds held under reinsurance treaties | 267 | 267 |
| Amounts due to reinsurers | 806 | 642 |
| Losses in course of payment | 124 | 151 |
| Senior notes | 2,352 | 2,352 |
| Long-term notes | 218 | 218 |
| Borrowings from FHLB | 1,019 | 1,019 |
| Accrued interest on debt and borrowings | 21 | 21 |
| Unsettled securities payable | 5 | - |
| Other liabilities | 753 | 797 |
| Total liabilities | 46,737 | 47,054 |
| SHAREHOLDERS' EQUITY: | | |
| Preferred shares, par value: $0.01; 50.0 shares authorized; no shares issued and outstanding | - | - |
| Common shares, par value: $0.01; 200.0 shares authorized; 74.5 (2026) and 74.4 (2025) | | |
| shares issued and outstanding | 1 | 1 |
| Additional paid-in capital | 3,871 | 3,852 |
| Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) | | |
| of $(124) at 2026 and $(23) at 2025 | (432) | (52) |
| Treasury shares, at cost; 35.8 shares (2026) and 33.7 shares (2025) | (5,630) | (4,906) |
| Retained earnings | 17,620 | 16,565 |
| Total shareholders' equity | 15,430 | 15,461 |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $62,167 | $62,514 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Six Months Ended June 30, |
|---|
| (In millions of U.S. dollars) | 2026 | 2025 |
| (unaudited) |
| CASH FLOWS FROM OPERATING ACTIVITIES: | | |
| Net income (loss) | $1,213 | $890 |
| Adjustments to reconcile net income to net cash provided by operating activities: | | |
| Decrease (increase) in premiums receivable | 78 | (662) |
| Decrease (increase) in funds held by reinsureds, net | (85) | (79) |
| Decrease (increase) in reinsurance recoverables | (149) | 199 |
| Decrease (increase) in income taxes | 59 | 152 |
| Decrease (increase) in prepaid reinsurance premiums | (90) | 85 |
| Increase (decrease) in reserve for losses and loss adjustment expenses | 669 | 1,688 |
| Increase (decrease) in unearned premiums | (788) | 63 |
| Increase (decrease) in amounts due to reinsurers | 212 | 12 |
| Increase (decrease) in losses in course of payment | (27) | 12 |
| Change in equity adjustments in limited partnerships | (240) | (140) |
| Distribution of limited partnership income | 90 | 74 |
| Change in other assets and liabilities, net | - | (249) |
| Non-cash compensation expense | 40 | 26 |
| Amortization of bond premium (accrual of bond discount) | (60) | (78) |
| Net (gains) losses on investments | 17 | 12 |
| Net cash provided by (used in) operating activities | 939 | 2,007 |
| CASH FLOWS FROM INVESTING ACTIVITIES: | | |
| Proceeds from fixed maturities matured/called/repaid - available for sale | 2,174 | 2,129 |
| Proceeds from fixed maturities sold - available for sale | 1,083 | 280 |
| Proceeds from fixed maturities matured/called/repaid - held to maturity | 69 | 105 |
| Proceeds from fixed maturities sold - held to maturity | - | 10 |
| Proceeds from equity securities sold | - | 54 |
| Distributions from other invested assets | 119 | 223 |
| Cost of fixed maturities acquired - available for sale | (3,820) | (5,767) |
| Cost of fixed maturities acquired - held to maturity | (69) | (4) |
| Cost of equity securities acquired | (3) | (2) |
| Cost of other invested assets acquired | (224) | (303) |
| Net change in short-term investments | 470 | 2,299 |
| Net change in unsettled securities transactions | 1 | (38) |
| Net cash provided by (used in) investing activities | (199) | (1,014) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | | |
| Common shares issued (redeemed) during the period for share-based compensation, net of expense | (21) | (19) |
| Purchase of treasury shares | (725) | (400) |
| Dividends paid to shareholders | (158) | (169) |
| Cost of shares withheld on settlements of share-based compensation awards | (24) | (20) |
| Net cash provided by (used in) financing activities | (927) | (608) |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH | 26 | (32) |
| Net change in cash including balances classified as held-for-sale | (161) | 352 |
| Net change in cash balances classified as held-for-sale | (40) | - |
| Cash, beginning of period | 1,318 | 1,549 |
| Cash, end of period | $1,117 | $1,902 |
| SUPPLEMENTAL CASH FLOW INFORMATION: | | |
| Income taxes paid (recovered) | $143 | $16 |
| Interest paid | 71 | 75 |
| NON-CASH TRANSACTIONS: | | |
| Non-cash restructure of fixed maturity securities - available for sale and other invested assets | - | 39 |
| Non-cash restructure of fixed maturity securities - available for sale and equity securities | 6 | - |
Contacts
EVEREST GROUP, LTD. · Seon Place, 141 Front Street, 4 Floor, Hamilton HM 19, Bermuda · Contacts · Media: Dawn Lauer · Chief Communications Officer · 908.300.7670
Investors: Matt Rohrmann · Head of Investor Relations · 908.604.7343