Everest Group swings to Q4 net income

Overview

• Global underwriting leader posts Q4 net income of $446 mln, reversing a loss last year

• Q4 gross written premium decreased 8.6% yr/yr

• Company repurchased $397 mln of common shares during the quarter

Outlook

• Everest targets lines with better expected margins in its Insurance business

• Company aims to deliver attractive margins through sharpened underwriting focus

• Everest expects to re-cast retail business into Other segment after AIG transaction

Result Drivers

• PREMIUM DECLINE - Gross written premiums fell 8.6% yr/yr in Q4, with strategic reductions in certain casualty lines offsetting growth in specialty lines

• INVESTMENT INCOME - Net investment income increased to $562 mln, driven by a larger asset base and strong fixed income and alternative investment returns

• CATASTROPHE LOSSES - Pre-tax catastrophe losses decreased to $216 mln from $312 mln in Q4 2024, aiding the improvement in the loss ratio

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 12 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the reinsurance peer group is "buy."

• Wall Street's median 12-month price target for Everest Group Ltd is $363.00, about 10.1% above its February 3 closing price of $329.83

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release: ID:nBw2YRld2a

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