Everest Group swings to quarterly profit on higher investment returns

Feb 4 (Reuters) - Everest Group EG.N swung to a quarterly profit on Wednesday on the back of strong growth in investment returns and an easier comparison to last year, when the reinsurer had fortified reserves.

Reinsurers and insurers typically invest a portion of their capital across various asset classes, such as fixed-income securities and alternative investments.

Net investment income jumped to $562 million in the fourth quarter, compared with $473 million a year earlier, driven by a larger asset base and strong core fixed-income and alternative investment returns.

The Hamilton, Bermuda-based company had also fortified reserves by $1.5 billion in its U.S. casualty lines business in the prior-year quarter, skewing year-on-year comparison.

Everest, one of the world's biggest property and casualty reinsurers, is sharpening its focus on its core businesses, including reinsurance, as it looks to boost profitability.

The firm last year struck a deal to sell its retail commercial insurance renewal rights to AIG AIG.N, exiting the global retail insurance business as part of a broader strategic pivot.

"In 2025 we took deliberate actions to simplify the business, improve the return profile, and strengthen the company's balance sheet," said CEO Jim Williamson.

"These actions have increased our financial flexibility and support our intention to return capital to shareholders."

Everest, whose roots date back to 1973, provides property, casualty and specialty reinsurance and insurance offerings in more than 115 countries across six continents.

The company reported a profit of $446 million, or $10.77 per share, for the three months ended December 31, compared with a loss of $593 million, or $13.96 per share, in the fourth quarter of 2024.

Everest's shares slipped 6.4% in 2025, underperforming the benchmark S&P 500 index .SPX.

The firm repurchased $397 million worth of shares during the reported quarter.