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Everest Group, Ltd. (EG)
NYSE:EG
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Everest Group
(NYSE:EG)
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Rating:75Outperform
Price Target:
$369.00
▲(9.25% Upside)
Action:UpgradedDate:02/07/26
The score is driven primarily by strong financial resilience (notably improved leverage and healthy profitability) and attractive valuation (low P/E with a solid dividend). This is tempered by neutral technicals and earnings-call commentary pointing to near-term transition costs, premium decline, and results volatility despite continued capital returns via buybacks.
Positive Factors
Strong Balance Sheet
A strong balance sheet with low leverage provides Everest Group with financial stability and flexibility to invest in growth opportunities.
Strategic Focus on Core Businesses
Focusing on core areas with competitive advantages can enhance profitability and market position, supporting long-term growth.
New CFO Appointment
The appointment of a seasoned CFO is expected to strengthen financial leadership and support strategic initiatives for sustained performance.
Negative Factors
Declining Profit Margins
Decreasing profit margins indicate increased cost pressures, which could impact profitability if not addressed through efficiency improvements.
Reserve Strengthening Impact
Significant reserve strengthening can strain financial resources and affect profitability, highlighting the need for careful risk management.
Decline in Operating Income
A decline in operating income suggests challenges in maintaining earnings, which may require strategic adjustments to improve financial performance.
Everest Group (EG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.26B
Dividend Yield2.37%
Average Volume (3M)361.37K
Price to Earnings (P/E)8.9
Beta (1Y)0.41
Revenue Growth8.62%
EPS Growth-78.92%
CountryUS
Employees3,037
SectorFinancial
Sector Strength70
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)13.26
Shares Outstanding41,978,058
10 Day Avg. Volume388,301
30 Day Avg. Volume361,370
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)0.91
Price to Sales (P/S)0.81
P/FCF Ratio4.58
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue0.95
Enterprise Value/Gross Profit4.65
Enterprise Value/Ebitda7.99
Forecast
1Y Price Target
$360.13Price Target Upside6.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 generates revenue primarily through its consulting services and subscription-based research offerings. The company's revenue model includes fees for tailored consulting engagements, where they provide strategic advice and operational guidance to clients. Additionally, EG earns money through annual subscriptions to its research reports, market assessments, and benchmarking studies, which are highly valued by organizations seeking data-driven insights. Significant partnerships with technology vendors and service providers also contribute to its revenue, as these collaborations often lead to co-branded research initiatives and joint consulting projects, further enhancing its service portfolio and market reach.
Everest Group Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Neutral
The call conveyed a balanced but constructive view: management emphasized meaningful strategic progress (portfolio simplification, reserve protection via an ADC, strengthened leadership), strong investment income, solid reinsurance underwriting results, improved book value, and an aggressive buyback program. At the same time, near‑term headwinds include a meaningful drop in gross written premium driven by the retail divestiture and targeted casualty reductions, one‑time restructuring and ADC costs that elevated the combined ratio and produced negative operating cash flow in the quarter, and a temporarily high combined ratio in the transitioning Other segment. Management framed most negatives as transitional or one‑time and reiterated plans to prioritize buybacks while expecting underwriting and margin improvement over 2026–2027.Q4-2025 Updates
Positive Updates
Strong capital returns and buybacks
Repurchased $400 million of shares in Q4 2025 and an additional $100 million in January 2026; full-year 2025 repurchases totaled ~$800 million (2.4 million shares at an average price of $333). Management set a quarterly buyback floor of $200 million and signaled continued repurchases given the discounted valuation.
Improved book value and shareholders' equity
Shareholders' equity ended Q4 at $15.5 billion. Book value per share was $379.83, an improvement of 20.1% from year-end 2024 (adjusted for $8 per share dividends year-to-date).
Solid profitability measures
Generated $549 million of net operating income in Q4. Management reported an operating ROE of 14.2% for the quarter and referenced a 12.4% operating ROE for the year, and an annualized total shareholder return of ~13.1%.
Durable and growing investment income
Net investment income increased to $562 million in Q4, driven by higher AUM and strong alternative returns. Alternatives produced $125 million of net investment income in the quarter (vs. $41 million prior-year quarter). Book yield was ~4.5% with new-money yields ~4.7%.
Underwriting strength in reinsurance
Reinsurance division produced $255 million of underwriting income in Q4 with disciplined underwriting across geographies. Reinsurance GWP down modestly (3.6% in constant dollars excluding reinstatements), and the combined ratio for the reinsurance segment was 91.2%.
Attritional performance excluding one‑offs
Group combined ratio was 98.4% including catastrophe losses and ADC premium; excluding those impacts (including $216 million of catastrophe losses and $122 million of ADC premium consideration), the attritional combined ratio was 89.9%, indicating underlying margin improvement (attritional loss ratio improved ~3.7 points to 60.2%).
Specialty growth and third‑party capital
Specialty reinsurance book is approximately $2 billion of premium with an attritional loss ratio in the mid‑80s. Mt. Logan third‑party capital business reached over $2.5 billion of AUM as of Jan 1, 2026, with a strong investor pipeline.
Strategic portfolio actions and leadership strengthening
In 2025 the company simplified its portfolio, reduced reserve risk (including executing a $1.2 billion adverse development cover), divested commercial retail renewal rights to AIG for $426 million consideration, and added senior executives to strengthen management.
Negative Updates
Decline in gross written premium
Group gross written premiums were $4.3 billion in Q4, down 8.6% in constant dollars (excluding reinstatement premiums) year‑over‑year, driven primarily by the sale of the commercial retail business and deliberate underwriting reductions (notably U.S. casualty). Insurance segment GWP decreased 20.1% in constant dollars to $1.1 billion.
One‑time costs and restructuring related to retail exit
Management expects approximately $150 million of restructuring charges in 2026 tied to the exit of the commercial retail insurance business (including ~ $80 million of real estate‑related costs expected in Q4 2026). These costs will be recognized in other income/expense and will pressure near‑term results.
Adverse development cover and catastrophe impact on combined ratio
Q4 combined ratio of 98.4% included $122 million of premium consideration for the second layer of the ADC (adding ~3.2 points) and $216 million of catastrophe losses (adding ~5.6 points), both elevating the reported combined ratio.
Transition pressure on 'Other' segment and elevated combined ratio
As the commercial retail book transitions to AIG, the Other segment is expected to run at a combined ratio above 110% in 2026 due to higher transition-related expenses; earned premium from that business will diminish over the year, causing combined‑ratio volatility.
Operating cash flow and one‑time payments
Operating cash flow for the quarter was negative $398 million, down from $780 million a year earlier, driven primarily by the consideration paid for the adverse development cover in Q4.
Higher expense pressure in Insurance
Insurance underwriting‑related expense ratio increased (to 21.5% in the insurance segment) and group underwriting‑related expense ratio rose ~1 point to 7.2%, driven by lower casualty earned premium growth and several one‑time costs including accelerated IT depreciation and restructuring.
Reduced casualty premium exposure
Since January 2024, management deliberately pared back the casualty portfolio by over $1.2 billion of premium; while aimed at improving returns, this reduces scale and top‑line growth in casualty lines and contributed to the overall GWP decline.
Near‑term earnings volatility tied to transition and reserve runoff
Capital and reserve dynamics related to the renewal‑rights transaction and runoff mean capital release is expected to be phased (meaningful releases likely in H2 2026 and into 2027), creating timing variability in excess capital availability and buyback deployment.
Company Guidance
Management's guidance for 2026 emphasized disciplined underwriting, capital returns and transition costs: they expect group underwriting-related operating expenses of about 6%–7% for the year (trending to the low end of ~6% by 2027), the Other (exited retail) segment to run a combined ratio above 110% in 2026 with an expected ~$10M monthly net benefit from AIG for the first nine months and ~ $150M of restructuring charges in 2026 (including ~$80M of real‑estate costs in Q4), and they will maintain elevated loss picks for U.S. liability while noting U.S. casualty rate remains in excess of loss trend; Global Wholesale & Specialty is expected to start with an underwriting expense ratio in the low double digits (roughly 12%–13%) and move to a mid‑90s all‑in combined ratio as mix and scaling improve; capital actions include a $200M quarterly buyback floor (willingness to exceed it), Q4 repurchases of $400M plus $100M in Jan 2026 (full‑year 2025 buybacks ~$800M at an average $333/share), expected capital releases (≈$1B of capital currently supporting the runoff reserves that should begin to free up in H2), and continued emphasis on buybacks given book value per share of $379.83, shareholders’ equity of $15.5B, a book yield of 4.5% (new‑money ≈4.7%), short duration (~3.4 years) and strong fixed‑income quality (AA‑).Everest Group Financial Statement Overview
Summary
Overall financially resilient: profitability remains solid with improved 2025 EBIT/net margins, and leverage improved materially (debt-to-equity ~0.23). Offsets include an ~8% revenue decline in 2025 and volatility in earnings and free cash flow (FCF down ~27.7% in 2025).Income Statement
Everest Group delivered solid profitability with EBIT margin improving to ~11.9% in 2025 (vs. ~9.6% in 2024) and net margin rising to ~9.1%. However, the earnings profile has been volatile: net margin peaked in 2023 (~17.4%) and has since normalized, and revenue declined ~8% in 2025 after strong growth in 2023–2024. Overall, margins remain healthy for the sector, but the top-line pullback and profit volatility temper the score.74
Positive
Balance Sheet
The balance sheet appears conservatively positioned with leverage moving down meaningfully: debt-to-equity improved to ~0.23 in 2025 from ~0.43 in 2023–2024 and ~0.64 in 2022. Equity has grown to ~$15.5B while assets expanded to ~$62.5B, supporting balance-sheet capacity. Return on equity is solid (~10.3% in 2025), though below the 2023 peak (~19.1%), indicating profitability has moderated even as leverage improved.82
Very Positive
Cash Flow
Cash generation is strong versus accounting earnings, with 2025 operating cash flow of ~$3.1B covering net income by ~1.9x (using safe_divide) and operating cash flow relative to debt at ~3.35x, signaling good debt service flexibility. The key weakness is volatility: free cash flow fell sharply in 2025 (down ~27.7%) after a very strong 2024, which reduces confidence in near-term consistency despite still-healthy absolute cash flow.69
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 17.32B | 17.08B | 14.46B | 11.98B | 11.33B |
| Gross Profit | 3.55B | 2.47B | 3.08B | 1.36B | 1.73B |
| EBITDA | 2.07B | 1.64B | 2.29B | 689.00M | 1.62B |
| Net Income | 1.59B | 1.37B | 2.52B | 597.00M | 1.38B |
Balance Sheet | |||||
| Total Assets | 62.51B | 56.34B | 49.40B | 39.97B | 38.19B |
| Cash, Cash Equivalents and Short-Term Investments | 4.31B | 20.44B | 16.58B | 24.67B | 24.93B |
| Total Debt | 3.59B | 5.94B | 5.74B | 3.08B | 5.43B |
| Total Liabilities | 41.29B | 42.47B | 36.20B | 31.52B | 28.05B |
| Stockholders Equity | 15.46B | 13.88B | 13.20B | 8.44B | 10.14B |
Cash Flow | |||||
| Free Cash Flow | 3.07B | 4.96B | 4.55B | 3.69B | 3.83B |
| Operating Cash Flow | 3.07B | 4.96B | 4.55B | 3.69B | 3.83B |
| Investing Cash Flow | -2.10B | -4.48B | -5.90B | -3.42B | -3.87B |
| Financing Cash Flow | -1.18B | -383.00M | 1.41B | -359.00M | 674.19M |
Everest Group Technical Analysis
Positive
337.77
Price Trends
331.12
Positive
329.72
Positive
332.37
Positive
Market Momentum
3.82
Negative
54.89
Neutral
73.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EG, the sentiment is Positive. The current price of 337.77 is above the 20-day moving average (MA) of 333.00, above the 50-day MA of 331.12, and above the 200-day MA of 332.37, indicating a bullish trend. The MACD of 3.82 indicates Negative momentum. The RSI at 54.89 is Neutral, neither overbought nor oversold. The STOCH value of 73.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $2.97B | 6.97 | 22.39% | ― | 22.79% | -5.17% | |
80 Outperform | $13.27B | 5.39 | 23.79% | 0.57% | -3.96% | -48.08% | |
78 Outperform | $14.32B | 12.24 | 9.74% | 1.76% | 2.10% | 19.23% | |
75 Outperform | $14.26B | 8.94 | 10.85% | 2.37% | 8.62% | -78.92% | |
72 Outperform | $2.47B | 5.74 | 20.86% | ― | 7.87% | -4.68% | |
70 Outperform | $11.51B | 19.15 | 11.72% | 1.43% | 7.54% | 2.73% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
EG
Everest Group
339.65
4.46
1.33%
RGA
Reinsurance Group
218.41
22.27
11.35%
RNR
Renaissancere Holdings
305.21
73.90
31.95%
SF
Stifel Financial
113.01
10.76
10.52%
SPNT
SiriusPoint
21.15
6.56
44.96%
HG
Hamilton Insurance Group, Ltd. Class B
30.55
12.29
67.31%
Everest Group Corporate Events
Executive/Board Changes
Everest Group Appoints New CFO Elias Habayeb
Neutral
Dec 2, 2025
On November 20, 2025, Everest Group, Ltd. announced the appointment of Elias Habayeb as its new Executive Vice President and Chief Financial Officer, effective May 1, 2026. This transition follows the retirement of current CFO Mark Kociancic, who will remain as a special advisor until July 31, 2026. The transition includes a comprehensive compensation package for Mr. Kociancic, totaling several million dollars in cash and equity awards, as part of a structured agreement to ensure a smooth transition and continuity in the company’s financial leadership.
The most recent analyst rating on (EG) stock is a Hold with a $362.00 price target. To see the full list of analyst forecasts on Everest Group stock, see the EG Stock Forecast page.
Business Operations and StrategyExecutive/Board Changes
Everest Group Appoints New CFO Elias Habayeb
Positive
Nov 20, 2025
On November 20, 2025, Everest Group announced the appointment of Elias Habayeb as Executive Vice President and Group Chief Financial Officer, effective May 1, 2026. Habayeb, a seasoned finance executive with over 30 years of experience, will succeed Mark Kociancic, who will retire after the first quarter of 2026. This leadership transition is part of Everest’s strategy to strengthen its foundation for sustained performance and capture future opportunities, ensuring consistent returns for shareholders.
The most recent analyst rating on (EG) stock is a Hold with a $344.00 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.