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Everest Group (EG)
NYSE:EG
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Everest Group (EG) AI Stock Analysis

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EG

Everest Group

(NYSE:EG)

Rating:75Outperform
Price Target:
$378.00
▲(14.08%Upside)
Everest Group's strong financial performance and balanced earnings call sentiment are the most significant factors influencing its stock score. While the technical analysis shows slight negative momentum, the solid valuation and strategic board appointment contribute positively, resulting in an overall robust stock score.
Positive Factors
Credit Ratings
Everest Group's (re)insurance subsidiaries are rated A+ by both A.M. Best and S&P, and A1 by Moody’s, providing a competitive advantage.
Market Positioning
Everest Group, Ltd. is a top-tier global P&C reinsurer with a growing primary insurance business, indicating strong market positioning.
Share Repurchase
The Board authorized a 10 million share repurchase, indicating confidence in the company's value.
Negative Factors
Growth and Market Environment
The combination of remediating the primary casualty book and softer pricing in the reinsurance segment should reduce the company's ability to generate short to medium term growth.
Insurance Segment Challenges
The Insurance segment is expected to see net adverse PYD and miss management targets, leading to a 20% discount applied to the valuation.
Leadership and Reserve Charges
The company announced a leadership transition at the CEO position and a large charge to shore up casualty reserves.

Everest Group (EG) vs. SPDR S&P 500 ETF (SPY)

Everest Group Business Overview & Revenue Model

Company DescriptionEverest 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.
How the Company Makes MoneyEverest Group makes money primarily through its research and consulting services. Key revenue streams include fees from advisory services, where clients pay for customized insights and strategic advice to improve their business operations. Additionally, the company generates revenue through the sale of research reports and benchmarking data, which provide value to businesses seeking to understand market trends and competitive landscapes. Partnerships with technology vendors and service providers also contribute to its earnings by enhancing its offerings and expanding its market reach.

Everest Group Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: -0.37%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlights strong performance in the Reinsurance segment, robust net operating income and investment income growth, as well as international insurance expansion. However, challenges such as an underwriting loss in the Insurance division, declines in gross written premiums, and impacts from legal rulings in the U.K. aviation sector present notable lowlights. The sentiment is balanced due to the significant achievements tempered by these challenges.
Q2-2025 Updates
Positive Updates
Strong Net Operating Income and ROE
Everest delivered a strong second quarter with net operating income of $734 million and an annualized operating ROE of nearly 20%.
Reinsurance Segment Performance
The Reinsurance segment generated $436 million in underwriting profit, up $133 million from the prior year, with a combined ratio of 85.6%.
Net Investment Income Growth
Net investment income was strong at $532 million, supported by favorable private equity performance.
Share Repurchases
Everest repurchased $200 million worth of shares in the second quarter. Year-to-date, $400 million has been returned to shareholders through buybacks.
International Insurance Growth
The International Insurance business grew by 23% this quarter with improving margins, achieving low 90s combined ratios in the U.K. wholesale and European retail.
Property Catastrophe Rates and Returns
Property Cat rate for the portfolio was essentially flat at 6.1%, and risk-adjusted returns remain attractive.
Negative Updates
Insurance Segment Underwriting Loss
The Insurance division recorded an underwriting loss of $18 million with a combined ratio of 102%.
Gross Written Premium Decline
Gross written premium declined slightly year-over-year, with Insurance declining 3.1%.
Casualty Premium Decline
Casualty premiums declined 7.3%, with the casualty pro rata book down 15% as targeted exposures were reduced.
Impact of U.K. Court Aviation Ruling
Losses associated with the recent U.K. court aviation ruling added 3.2 points to the Reinsurance combined ratio.
Higher Expense Ratio in Insurance
The Insurance segment saw a higher expense ratio due to lower earned premium and investments in the global platform.
Company Guidance
In the Everest Group Limited's Second Quarter 2025 Earnings Conference Call, the company reported a robust financial performance with net operating income reaching $734 million and an operating return on equity (ROE) of nearly 20%. The underwriting profit was $385 million, supported by a combined ratio of 90.4% and a loss ratio of 60.1%. Gross written premiums saw a slight decline, with Reinsurance premiums increasing by 1.1% and Insurance premiums falling by 3.1%. Notably, Reinsurance achieved $436 million in underwriting profit, with a combined ratio of 85.6%, improved by 1.3 points due to reserve releases, although offset by a 3.2-point impact from U.K. court aviation ruling losses. The Insurance division recorded an $18 million underwriting loss, influenced by a 102% combined ratio and a 68.7% attritional loss ratio. The call highlighted the strategic reshaping of Everest's portfolio, particularly in U.S. casualty, and the strong growth in global specialty lines like engineering and renewable energy. Everest also reported strong net investment income of $532 million and has returned $400 million to shareholders in 2025 through buybacks.

Everest Group Financial Statement Overview

Summary
Everest Group exhibits strong financial performance, with excellent revenue growth and cash flow management. The balance sheet reflects a healthy equity base and negligible debt, minimizing financial risk. However, the absence of EBIT/EBITDA in 2024 raises questions on operational profitability.
Income Statement
75
Positive
Everest Group has demonstrated strong revenue growth with a 18.45% increase from 2023 to 2024. The company maintains a high Gross Profit Margin as Gross Profit equates to Total Revenue, indicative of efficient cost management. However, the absence of EBIT and EBITDA in 2024 suggests potential concerns in operational profitability measurement.
Balance Sheet
80
Positive
The company shows a strong equity position with an increasing Stockholders' Equity, reaching $13.88 billion in 2024. The Debt-to-Equity ratio is favorable with zero total debt in 2024, indicating low leverage risk. The Equity Ratio improved to 24.62% in 2024, suggesting a solid financial foundation.
Cash Flow
85
Very Positive
Everest Group's cash flow is robust, with a consistent increase in Free Cash Flow, growing by 8.87% from 2023 to 2024. The Operating Cash Flow to Net Income ratio is strong, indicating efficient conversion of income into cash. This highlights financial stability and effective cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue17.47B17.08B14.59B11.98B11.30B9.49B
Gross Profit-248.00M1.53B6.04B11.98B11.30B9.49B
EBITDA1.11B1.81B-23.50M0.000.000.00
Net Income806.00M1.37B2.52B597.00M1.38B514.00M
Balance Sheet
Total Assets60.52B56.34B49.40B39.97B38.19B32.79B
Cash, Cash Equivalents and Short-Term Investments4.41B6.26B1.44B24.67B24.93B21.98B
Total Debt0.003.71B3.41B3.08B3.09B1.91B
Total Liabilities45.50B42.47B36.20B31.52B28.05B23.06B
Stockholders Equity15.02B13.88B13.20B8.44B10.14B9.73B
Cash Flow
Free Cash Flow4.53B4.96B4.55B3.69B3.83B2.87B
Operating Cash Flow4.53B4.96B4.55B3.69B3.83B2.87B
Investing Cash Flow-3.48B-4.48B-5.90B-3.42B-3.87B-3.68B
Financing Cash Flow-686.00M-383.00M1.41B-359.00M674.19M800.22M

Everest Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price331.34
Price Trends
50DMA
337.85
Negative
100DMA
343.64
Negative
200DMA
350.83
Negative
Market Momentum
MACD
-1.57
Negative
RSI
45.22
Neutral
STOCH
28.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EG, the sentiment is Negative. The current price of 331.34 is below the 20-day moving average (MA) of 335.04, below the 50-day MA of 337.85, and below the 200-day MA of 350.83, indicating a bearish trend. The MACD of -1.57 indicates Negative momentum. The RSI at 45.22 is Neutral, neither overbought nor oversold. The STOCH value of 28.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EG.

Everest Group Risk Analysis

Everest Group disclosed 38 risk factors in its most recent earnings report. Everest Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Everest Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
86
Outperform
$11.38B6.1718.75%0.65%23.19%-22.42%
80
Outperform
$25.24B31.6020.64%1.02%18.99%17.97%
78
Outperform
$2.17B6.6414.07%35.36%-3.34%
75
Outperform
$14.09B17.245.52%2.41%10.40%-71.64%
73
Outperform
$11.72B15.417.07%2.01%1.53%-10.27%
71
Outperform
$2.28B19.697.20%-5.57%-44.54%
58
Neutral
HK$93.21B5.42-3.19%4.97%5.93%-50.48%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EG
Everest Group
331.34
-17.26
-4.95%
CBOE
Cboe Global Markets
247.79
53.81
27.74%
RGA
Reinsurance Group
177.33
-12.03
-6.35%
RNR
Renaissancere Holdings
241.83
14.87
6.55%
SPNT
SiriusPoint
19.58
5.43
38.37%
HG
Hamilton Insurance Group, Ltd. Class B
21.15
5.54
35.49%

Everest Group Corporate Events

Financial Disclosures
Everest Group Releases 2024 Global Loss Triangles
Neutral
Jun 30, 2025

Everest Group, Ltd. announced the publication of its Global Loss Triangles for the year ending December 31, 2024, on June 30, 2025. This release is significant for stakeholders as it provides crucial data on the company’s financial performance and risk management strategies, reinforcing Everest’s position as a leader in the reinsurance and insurance industry.

The most recent analyst rating on (EG) stock is a Hold with a $390.00 price target. To see the full list of analyst forecasts on Everest Group stock, see the EG Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Everest Group Appoints Allan Levine to Board
Neutral
Jun 23, 2025

On June 23, 2025, Everest Group, Ltd. announced the appointment of Allan Levine as an independent, non-executive member of its Board of Directors, expanding the Board to 11 members. Mr. Levine, a seasoned leader with extensive experience in insurance and financial markets, is expected to contribute significantly to Everest’s long-term strategy and global platform potential. The company also reorganized its Committee structure, appointing Levine and Darryl Page to various Committees, enhancing its governance framework.

The most recent analyst rating on (EG) stock is a Hold with a $390.00 price target. To see the full list of analyst forecasts on Everest Group stock, see the EG Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Everest Group Appoints Darryl Page to Board
Positive
May 20, 2025

Everest Group, Ltd. announced the appointment of Darryl Page as an independent, non-executive member of its Board of Directors, effective May 15, 2025. Mr. Page, a seasoned insurance executive with over four decades of experience, is expected to bring valuable expertise in scaling profitable insurance businesses and developing high-performing cultures, enhancing Everest’s strategic value creation initiatives.

The most recent analyst rating on (EG) stock is a Hold with a $390.00 price target. To see the full list of analyst forecasts on Everest Group stock, see the EG Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Everest Group Holds Annual Shareholder Meeting
Neutral
May 16, 2025

On May 14, 2025, Everest Group, Ltd. held its Annual General Meeting of Shareholders where several key decisions were made. The shareholders elected a slate of directors, appointed KPMG as the independent registered public accounting firm for the fiscal year ending December 31, 2025, approved the 2024 compensation for the Company’s Named Executive Officers, and endorsed the 2025 Employee Stock Purchase Plan and amendments to the Company’s bye-laws.

The most recent analyst rating on (EG) stock is a Hold with a $390.00 price target. To see the full list of analyst forecasts on Everest Group stock, see the EG Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 01, 2025