Everest Group (EG) Q1 2026 earnings summary

Executive summary

• Net income rose to $653 million for Q1 2026, up from $210 million in Q1 2025, driven by improved underwriting, lower catastrophe losses, and higher investment income.

• Net operating income reached $648 million, with operating ROE at 16.7% and total shareholder return at 16.1%.

• Strategic actions included the sale of commercial retail insurance renewal rights, Canadian retail operations, and the purchase of a $1.2 billion adverse development cover, streamlining operations and strengthening the balance sheet.

• The business was re-segmented to focus on core Reinsurance Treaty and Global Wholesale & Specialty Insurance, enhancing operational alignment and capital flexibility.

• $331 million of common shares were repurchased during the quarter.

Financial highlights

• Net income for Q1 2026 was $653 million, with net operating income of $648 million and operating EPS of $16.08.

• Gross written premiums declined 18% year-over-year to $3.6 billion, mainly due to divestitures and portfolio repositioning.

• Combined ratio improved to 91.2% from over 102% in Q1 2025; attritional combined ratio was 88.5%.

• Net investment income reached $567 million, up from $491 million year-over-year.

• Book value per share excluding unrealized losses rose to $393.02, with shareholders’ equity at $15.7 billion.

Outlook and guidance

• Management remains focused on underwriting discipline, profitability, and accelerating capital return, with further capital release expected from the AIG retail business transition and Canadian retail sale.

• Targeting mid-teens total shareholder return over the cycle, supported by a more focused and agile business model.

• Approximately $150 million in restructuring charges expected in 2026 related to the exit from commercial retail insurance.

• Continued focus on profitable growth in core reinsurance and specialty lines, with improved risk-adjusted returns.

• Ongoing volatility from catastrophe events and macroeconomic factors anticipated, but capital and liquidity are sufficient to support future growth.