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Everest Group, Ltd. (EG)
:EG
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Everest Group
(NYSE:EG)
Rating:70Outperform
Price Target:
$375.00
▲(6.61%Upside)
Positive Factors
Financial Performance
The company sees the potential for higher Property Reinsurance rates, suggesting growth in this area.
Leadership
EG's newly appointed CEO is taking meaningful steps to turnaround profitability levels.
Management Strategy
There is greater confidence in the company's balance sheet following reserve strengthening efforts.
Negative Factors
Earnings
Analyst lowers forward EPS primarily due to higher loss picks and less premium growth.
Market Environment
The reinsurance segment should also face a slowdown due to a soft market pricing environment.
Stock Valuation
The stock is downgraded to Equal-weight and the price target is reduced to $340 given the reserve charges and updated outlook.
Everest Group (EG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.96B
Dividend Yield2.3%
Average Volume (3M)423.55K
Price to Earnings (P/E)17.7
Beta (1Y)0.33
Revenue Growth12.81%
EPS Growth-70.56%
CountryUS
Employees3,037
SectorFinancial
Sector Strength85
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)6.45
Shares Outstanding42,534,730
10 Day Avg. Volume410,225
30 Day Avg. Volume423,549
Financial Highlights & Ratios
PEG Ratio-0.46
Price to Book (P/B)1.05
Price to Sales (P/S)0.00
P/FCF Ratio3.03
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue0.20
Enterprise Value/Gross Profit0.76
Enterprise Value/Ebitda1.02K
Forecast
1Y Price Target
$384.00Price Target Upside9.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
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:Apr 30, 2025
(Q1-2025)
| % Change Since: -1.40%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call for Everest Group Ltd. highlighted strong growth in property lines and international markets, successful share repurchases, and robust operating income despite catastrophe losses. However, challenges were noted with the elevated combined ratio due to catastrophic events, a decline in casualty written premium, and increased attritional loss ratios. The sentiment is balanced with notable achievements in property and international markets, but challenges remain in specific areas such as casualty and aviation losses.Q1-2025 Updates
Positive Updates
Growth in Property Lines
Total premiums increased from the prior year, driven by approximately 16% growth in property lines or 8% excluding reinstatement premiums. At the April renewal, the book grew by 5%, led by property growth of 15%.
Strong International Insurance Business
The international insurance business turned a modest profit in the quarter despite continued meaningful investment in people and technology. Strong growth in key markets at attractive loss ratios.
Share Repurchases
Everest repurchased $200 million of shares in the quarter at an average price just over $348 per share, consistent with their commitment to delivering value to shareholders.
Operating Income Despite Catastrophes
Everest delivered $276 million of operating income despite significant catastrophe loss activity in the first quarter.
Improvements in Book Value Per Share
Book value per share ended the quarter at $332.39, an improvement of 3.5% from year-end 2024 when adjusted for dividends.
Negative Updates
Elevated Combined Ratio Due to Catastrophic Events
The combined ratio is elevated at 102.7% due to California wildfire and aviation losses. Catastrophe losses contributed 13.9 points to the combined ratio.
Decline in Casualty Written Premium
Pro-rata written premium was down almost 22% in the quarter, driven by the portfolio actions taken since the January 1st, 2024, renewal.
Attritional Loss Ratio Increase
The Group attritional loss ratio was 62.2%, a 330 basis point increase over the prior year's quarter, driven by aviation losses and conservative loss picks in U.S. casualty lines.
Flat Insurance Written Premium
Insurance written premium in the quarter was down 1.3% from the prior year, with property lines growing 19% but offset by a 15% decline in the third-party book due to U.S. casualty portfolio remediation.
Aviation Losses Impact
Aviation losses of $70 million, net of recoveries and reinstatement premiums, contributed 2 points to the attritional loss ratio.
Company Guidance
During the Everest Group's first quarter 2025 earnings call, the management provided guidance on several key metrics, reflecting the company's strategic focus and market conditions. The combined ratio for the quarter stood at 102.7%, impacted by catastrophic events such as the California wildfires and aviation losses. Total group written premium was $4.4 billion, mirroring Q1 2024. The reinsurance division saw a 16% growth in property lines, while the insurance division faced a 1.3% decline in written premiums due to a 15% reduction in the third-party book. Notably, catastrophe losses contributed 13.9 points to the combined ratio, with California wildfires alone accounting for $440 million. Everest's attritional loss ratio was 62.2%, with aviation losses adding 2 points. The company repurchased $200 million in shares at an average price of $348 per share, indicating a commitment to shareholder value. Everest's overall reserve position improved, and the company projected moderate catastrophe pricing pressure for the remainder of 2025, with opportunities for capital deployment at attractive returns.Everest Group Financial Statement Overview
Summary
Everest Group exhibits strong financial stability with robust revenue growth, efficient cash flow management, and a solid balance sheet. The absence of EBIT/EBITDA raises concerns about operational profitability measurement, but overall financial health is commendable.Income Statement
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.75
Positive
Balance Sheet
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.80
Positive
Cash Flow
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.85
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 17.39B | 17.08B | 14.59B | 11.98B | 11.30B | 9.49B | Gross Profit |
| 17.39B | 17.08B | 14.59B | 11.98B | 11.30B | 9.49B | EBIT |
| 716.00M | 1.64B | 2.31B | 689.00M | 1.62B | 621.67M | EBITDA |
| 22.00M | 1.70B | -23.50M | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 850.00M | 1.37B | 2.52B | 597.00M | 1.38B | 514.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 4.52B | 6.26B | 1.44B | 24.67B | 24.93B | 21.98B | Total Assets |
| 58.13B | 56.34B | 49.40B | 39.97B | 38.19B | 32.79B | Total Debt |
| 0.00 | 3.59B | 3.41B | 3.08B | 3.09B | 1.91B | Net Debt |
| -1.57B | 2.04B | 1.97B | 1.69B | 1.65B | 1.11B | Total Liabilities |
| 43.99B | 42.47B | 36.20B | 31.52B | 28.05B | 23.06B | Stockholders Equity |
| 14.14B | 13.88B | 13.20B | 8.44B | 10.14B | 9.73B |
| Cash Flow | Free Cash Flow | ||||
| 4.89B | 4.96B | 4.55B | 3.69B | 3.83B | 2.87B | Operating Cash Flow |
| 4.89B | 4.96B | 4.55B | 3.69B | 3.83B | 2.87B | Investing Cash Flow |
| -4.31B | -4.48B | -5.90B | -3.42B | -3.87B | -3.68B | Financing Cash Flow |
| -554.00M | -383.00M | 1.41B | -359.00M | 674.19M | 800.22M |
Everest Group Technical Analysis
Positive
351.74
Price Trends
347.58
Positive
347.67
Positive
359.58
Negative
Market Momentum
-0.66
Negative
56.40
Neutral
89.81
Negative
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 351.74 is above the 20-day moving average (MA) of 342.83, above the 50-day MA of 347.58, and below the 200-day MA of 359.58, indicating a neutral trend. The MACD of -0.66 indicates Negative momentum. The RSI at 56.40 is Neutral, neither overbought nor oversold. The STOCH value of 89.81 is Negative, 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 3 New Risks
1.
We may require additional capital or financing sources in the future, which may not be available or may be available only on unfavorable terms. Q4, 2024
2.
Unfavorable loss development may adversely affect our business, financial condition, results of operations or liquidity. Q4, 2024
3.
We rely on our processes, people and systems to maintain our operations and manage the operational risks inherent to our business. Any errors, omissions or misconduct by our employees or third-party agents in the execution of these processes could adversely affect our business, results of operations and financial condition. Q4, 2024
Everest Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $12.13B | 7.94 | 16.30% | 0.63% | 32.10% | -30.52% | |
80 Outperform | $2.29B | 7.00 | 14.07% | ― | 35.36% | -3.34% | |
78 Outperform | $13.43B | 17.17 | 7.60% | 1.75% | 1.60% | -7.50% | |
78 Outperform | $23.99B | 30.04 | 18.93% | 1.10% | 15.76% | 1.97% | |
71 Outperform | $2.28B | 19.70 | 7.20% | ― | -5.57% | -44.54% | |
70 Outperform | $14.96B | 17.74 | 6.12% | 2.30% | 12.81% | -70.56% | |
64 Neutral | $12.79B | 9.72 | 7.54% | 16971.00% | 12.07% | -7.53% |
* Financial Sector Average
Performance Comparison
EG
Everest Group
351.74
-24.66
-6.55%
CBOE
Cboe Global Markets
231.10
57.43
33.07%
RGA
Reinsurance Group
203.70
1.04
0.51%
RNR
Renaissancere Holdings
253.95
30.96
13.88%
SPNT
SiriusPoint
19.62
6.83
53.40%
HG
Hamilton Insurance Group, Ltd. Class B
22.32
5.02
29.02%
Everest Group Corporate Events
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.
Executive/Board Changes
Everest Group Approves Executive Compensation Awards
Neutral
Mar 4, 2025
On February 26, 2025, Everest Group’s Compensation Committee approved significant compensation awards for its executive officers. Jim Williamson, the President and CEO, received a one-time restricted stock award valued at $2.5 million, while Mark Kociancic, the Executive Vice President and CFO, received a $1.5 million award. Additionally, Mr. Kociancic’s target annual incentive bonus was increased to 175%, and the target value of his equity compensation was raised to $2.5 million.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.