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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)

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Neutral 62 (OpenAI - 4o)
Rating:62Neutral
Price Target:
$323.00
▲(5.93% Upside)
Everest Group's overall stock score reflects a stable financial position and strategic focus on core businesses, but is weighed down by declining profitability and bearish technical indicators. The high P/E ratio suggests potential overvaluation, while the earnings call highlights both strategic strengths and significant challenges.
Positive Factors
Strong Reinsurance Performance
The improvement in the reinsurance segment's combined ratio and premium stability indicates strong operational performance and effective risk management, which are crucial for long-term profitability and market competitiveness.
Investment Income Increase
The rise in net investment income, driven by higher assets under management and strong returns, enhances financial stability and supports future growth initiatives, contributing positively to the company's cash flow.
Book Value Per Share Increase
An increase in book value per share reflects the company's ability to enhance shareholder equity, indicating strong financial health and potential for sustained investor confidence.
Negative Factors
Decline in Operating Income
The significant drop in operating income due to reserve adjustments highlights challenges in maintaining profitability, which may impact the company's ability to invest in growth and innovation.
Reserve Strengthening Impact
The need for reserve strengthening suggests potential underwriting challenges and risk management issues, which could strain financial resources and affect future earnings stability.
Insurance Segment Challenges
Challenges in the insurance segment, particularly in U.S. casualty lines, indicate ongoing issues that may require strategic adjustments, potentially affecting long-term growth and profitability.

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

Everest Group Business Overview & Revenue Model

Company DescriptionEverest Group (EG) is a prominent research and consulting firm specializing in digital transformation, business process outsourcing, and IT services. The company operates across various sectors including technology, healthcare, financial services, and manufacturing, providing insights and strategic guidance to help organizations leverage cloud, automation, and artificial intelligence to enhance operational efficiency and drive innovation. EG's core services include market research, benchmarking, and advisory services, tailored to meet the specific needs of its clients.
How the Company Makes MoneyEverest Group generates revenue primarily through its consulting services, research publications, and subscription-based offerings. Key revenue streams include fees from consulting engagements where they assist organizations in strategy formulation and implementation, as well as revenues from proprietary research reports and industry benchmarks sold to clients seeking market insights. The company also earns money through training and workshops aimed at equipping businesses with the knowledge necessary to navigate digital transformations. Significant partnerships with leading technology firms, service providers, and industry associations enhance its credibility and expand its market reach, contributing further to its earnings.

Everest Group Earnings Call Summary

Earnings Call Date:Oct 27, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 11, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of strategic moves to improve long-term profitability and challenges faced in the current quarter. The company is focusing on core Reinsurance and Specialty & Wholesale Insurance businesses, with strong performance in these areas. However, the decline in operating income and the need for reserve strengthening pose significant challenges.
Q3-2025 Updates
Positive Updates
North America Insurance Adverse Development Cover
Established a $1.2 billion adverse development cover for North America insurance division, providing capital flexibility and ensuring past poor underwriting does not affect current performance.
Strong Reinsurance Performance
Reinsurance business reported gross written premiums of $3.2 billion, with a combined ratio improvement to 87% driven by lower catastrophe losses and favorable prior year development.
Global Specialties Growth
The Global Specialties business produced almost $500 million of gross written premium and over $100 million of underwriting income, indicating strong performance and investment potential.
Investment Income Increase
Net investment income increased to $540 million in the quarter, driven by higher assets under management and strong alternative asset returns.
Book Value Per Share Increase
Book value per share increased by 15.2% from year-end 2024, ending the quarter at $366.22.
Negative Updates
Decline in Group Gross Written Premium
Group gross written premium was $4.4 billion, down 1% from the previous year, reflecting targeted re-underwriting and portfolio management.
Decrease in Operating Income
Operating income was $316 million, a decline from $630 million last year, primarily due to reserve adjustments.
Reserve Strengthening Impact
Strengthened U.S. casualty reserves by $478 million, impacting the combined ratio by 12.4 points and resulting in a net investment income decrease of approximately $60 million per year.
Insurance Segment Challenges
Insurance segment faced reserve strengthening of $361 million, largely driven by U.S. casualty lines and aggressive actions in the U.S. casualty book.
Company Guidance
During the Everest Group Limited Third Quarter 2025 Earnings Conference Call, the company provided several financial metrics and strategic updates. Group gross written premium was reported at $4.4 billion, reflecting a 1% decrease from the previous year, primarily due to targeted re-underwriting in Insurance and careful portfolio mix management in Reinsurance. The combined ratio for the quarter was 103.4%, but excluding prior year development and net catastrophe losses, the attritional combined ratio was 89.6%. Operating income was $316 million, down from $630 million the previous year, a change largely attributed to reserve adjustments. The Reinsurance business maintained strong performance with a gross written premium of $3.2 billion, showing a 2% year-over-year decrease, yet the combined ratio improved to 87% due to lower catastrophe losses and favorable prior year development. In strategic moves, Everest announced the exit from global retail insurance and established an adverse development cover for its North American insurance division, with a $1.2 billion gross limit, enhancing capital flexibility. Management stressed a focus on core Reinsurance and Wholesale & Specialty insurance operations, emphasizing capital deployment in areas with competitive advantage and strong economics.

Everest Group Financial Statement Overview

Summary
Everest Group demonstrates a stable financial position with strong cash flow generation and a conservative balance sheet. However, declining profitability margins and reduced return on equity highlight areas for improvement. The company should focus on enhancing cost efficiency and profitability to sustain growth and shareholder value.
Income Statement
65
Positive
The income statement shows a mixed performance. While there is a positive revenue growth rate of 1.53% in the TTM period, margins have generally declined. The gross profit margin is negative, indicating potential cost management issues. Net profit margin and EBIT margin have also decreased compared to previous periods, suggesting reduced profitability. However, the company has maintained a positive EBITDA margin, which is a positive sign for operational efficiency.
Balance Sheet
75
Positive
The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.24 in the TTM period, indicating conservative leverage. Return on equity has decreased to 5.52%, which is a concern, but the equity ratio remains strong, suggesting a solid capital structure. Overall, the balance sheet indicates financial stability with manageable debt levels.
Cash Flow
70
Positive
Cash flow analysis reveals a decline in free cash flow growth by 5.39% in the TTM period, which is a concern. However, the operating cash flow to net income ratio is strong at 4.78, indicating efficient cash generation relative to net income. The free cash flow to net income ratio remains at 1.0, showing consistency in cash flow relative to earnings.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue17.57B17.08B14.46B11.98B11.30B9.60B
Gross Profit3.72B5.77B6.04B3.88B3.91B1.17B
EBITDA735.00M1.64B2.29B689.00M1.62B621.00M
Net Income552.00M1.37B2.52B597.00M1.38B514.00M
Balance Sheet
Total Assets62.24B56.34B49.40B39.97B38.19B32.79B
Cash, Cash Equivalents and Short-Term Investments5.43B6.26B1.44B24.67B24.93B21.98B
Total Debt0.005.94B5.74B5.43B5.43B1.91B
Total Liabilities46.86B42.47B36.20B31.52B28.05B22.99B
Stockholders Equity15.38B13.88B13.20B8.44B10.14B9.73B
Cash Flow
Free Cash Flow4.25B4.96B4.55B3.69B3.83B2.87B
Operating Cash Flow4.25B4.96B4.55B3.69B3.83B2.87B
Investing Cash Flow-3.69B-4.48B-5.90B-3.42B-3.87B-3.68B
Financing Cash Flow-580.00M-383.00M1.41B-359.00M674.19M800.00M

Everest Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price304.91
Price Trends
50DMA
344.53
Negative
100DMA
338.90
Negative
200DMA
342.07
Negative
Market Momentum
MACD
-2.93
Positive
RSI
25.90
Positive
STOCH
27.22
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 304.91 is below the 20-day moving average (MA) of 349.41, below the 50-day MA of 344.53, and below the 200-day MA of 342.07, indicating a bearish trend. The MACD of -2.93 indicates Positive momentum. The RSI at 25.90 is Positive, neither overbought nor oversold. The STOCH value of 27.22 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$10.90B5.9118.75%0.66%23.19%-22.42%
$2.46B6.5315.86%28.86%-11.22%
$12.01B20.741.53%7.53%2.73%
$18.00B11.429.92%3.81%9.73%1.22%
$12.35B16.267.07%1.90%1.53%-10.27%
$2.11B20.144.82%-4.56%-55.48%
$12.79B22.623.59%2.62%8.62%-78.92%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EG
Everest Group
304.91
-63.50
-17.24%
RGA
Reinsurance Group
186.85
-20.88
-10.05%
RNR
Renaissancere Holdings
231.59
-34.78
-13.06%
SF
Stifel Financial
117.55
14.54
14.12%
SPNT
SiriusPoint
18.09
4.58
33.90%
HG
Hamilton Insurance Group, Ltd. Class B
23.90
6.53
37.59%

Everest Group Corporate Events

Everest Group Reports Q3 2025 Earnings and Strategic Shifts
Oct 29, 2025

Everest Group, Ltd. is a global leader in underwriting, specializing in property, casualty, and specialty reinsurance and insurance solutions. In its third quarter of 2025, Everest Group reported a net income of $255 million, a significant drop from $509 million in the same quarter of 2024. The company also highlighted a strategic shift with the sale of renewal rights for its retail commercial insurance business and the establishment of a $1.2 billion adverse development cover to reduce future volatility. Key financial metrics showed a decrease in gross written premiums by 1.2% year-over-year, with a combined ratio of 103.4% for the group. The reinsurance segment saw a decrease in gross written premiums by 1.7%, while the insurance segment experienced a 2.7% increase. Despite these challenges, Everest’s net investment income rose to $540 million, driven by a larger asset base and strong alternative investment returns. Looking forward, Everest’s management remains focused on strategic opportunities and investments to enhance its competitive edge, positioning the company for improved performance in the future.

Everest Group’s Earnings Call: Strategic Moves Amid Challenges
Oct 29, 2025

In the recent earnings call, Everest Group, Ltd. showcased a blend of strategic initiatives aimed at bolstering long-term profitability, while also addressing some of the challenges faced during the current quarter. The company emphasized its focus on core Reinsurance and Specialty & Wholesale Insurance businesses, which have shown robust performance. Nevertheless, a decline in operating income and the necessity for reserve strengthening were highlighted as significant hurdles.

Business Operations and StrategyExecutive/Board ChangesM&A Transactions
Everest Group Sells Insurance Rights to AIG
Positive
Oct 28, 2025

On October 26, 2025, Everest Group, Ltd. entered into agreements to sell the renewal rights for its Global Retail Commercial Insurance business to American International Group, Inc. for a total of $301 million. This strategic move allows Everest to focus on its core global Reinsurance and Global Wholesale and Specialty Insurance businesses, positioning the company for strong performance across market cycles. The transactions, which include the renewal rights of U.S., U.K., European, and Asia Pacific businesses, are expected to unlock long-term value and release significant capital over time. Jason Keen has been appointed CEO of Global Wholesale and Specialty Insurance to lead the company’s efforts in capturing new growth opportunities in the excess and surplus market.

The most recent analyst rating on (EG) stock is a Buy with a $425.00 price target. To see the full list of analyst forecasts on Everest Group stock, see the EG Stock Forecast page.

Business Operations and Strategy
Everest Group Strengthens Reserves with New Agreements
Positive
Oct 27, 2025

On October 26, 2025, Everest Reinsurance Company and its Bermuda subsidiary entered into adverse development reinsurance agreements with State National Insurance Company and MS Transverse Insurance Company, effective October 1, 2025. These agreements, supported by Longtail Re, cover risks from Everest’s North American Insurance portfolio for years 2024 and prior, with a total statutory reserve of over $5.3 billion. The agreements aim to strengthen Everest’s reserves and enhance its risk capacity, providing $1.2 billion of protection against future adverse reserve development. The transaction is expected to optimize capital efficiency and deliver greater value to clients and shareholders.

The most recent analyst rating on (EG) stock is a Buy with a $424.00 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 Announces Executive Vice President Retirement
Neutral
Oct 16, 2025

On September 24, 2025, Everest Group announced the retirement of Ricardo Anzaldua, its Executive Vice President and General Counsel, with Anthony Vidovich set to succeed him by January 5, 2026. Vidovich, a seasoned legal leader with extensive experience in the global property and casualty insurance industry, will join Everest’s Executive Leadership Team to support the company’s long-term growth strategy.

The most recent analyst rating on (EG) stock is a Buy with a $500.00 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 Announces EVP Ricardo Anzaldua’s Retirement
Neutral
Sep 25, 2025

Everest Group, Ltd. announced the upcoming retirement of Ricardo Anzaldua, its Executive Vice President and General Counsel, who has been instrumental in the company’s growth since joining in June 2023. The company has started the search for his successor, with Anzaldua remaining in his role to ensure a smooth transition, reflecting the company’s focus on maintaining value for stakeholders.

The most recent analyst rating on (EG) stock is a Buy with a $375.00 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 Laura J. Hay to Board
Positive
Aug 20, 2025

On August 20, 2025, Everest Group announced the appointment of Laura J. Hay as an independent director on its Board of Directors. With over three decades of experience in insurance and financial services, including her role as Global Head of Insurance at KPMG LLP, Hay will contribute significantly to Everest’s strategic direction as it navigates an evolving risk landscape and seeks growth opportunities.

The most recent analyst rating on (EG) stock is a Buy with a $378.00 price target. To see the full list of analyst forecasts on Everest Group stock, see the EG Stock Forecast page.

Everest Group Reports Strong Q2 2025 Results
Aug 1, 2025

Everest Group, Ltd., a global leader in property, casualty, and specialty reinsurance and insurance solutions, reported its second quarter 2025 financial results, showcasing a robust performance in both underwriting and investment income. The company achieved a net income of $680 million and a net operating income of $734 million, with annualized returns on equity of 18.2% and 19.6%, respectively. Despite a slight decrease in gross written premiums year-over-year, Everest’s reinsurance segment demonstrated growth, while the insurance segment focused on strategic portfolio adjustments.

Everest Group’s Earnings Call: Balancing Achievements and Challenges
Aug 1, 2025

The recent earnings call for Everest Group, Ltd. presented a balanced sentiment, highlighting both significant achievements and notable challenges. The company reported strong performance in its Reinsurance segment, robust growth in net operating income and investment income, and successful international insurance expansion. However, these positive outcomes were tempered by challenges such as underwriting losses in the Insurance division, declines in gross written premiums, and impacts from legal rulings in the U.K. aviation sector.

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: Oct 29, 2025