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Is a Beat in the Cards for Everest Group This Earnings Season?
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Key Takeaways
The combined ratio is expected to improve, reflecting rate increases and exposure growth.
Share buybacks are likely to have supported earnings.
Net written premiums are expected to rise 6.6%, led by Reinsurance and Insurance segment strength.
Everest Group, Ltd. (EG - Free Report) is expected to register an improvement in its top line but a decline in its bottom line when it reports second-quarter 2025 results on July 30, after the closing bell.
The Zacks Consensus Estimate for EG’s second-quarter revenues is pegged at $4.40 billion, indicating 4.1% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at $15.14 per share. The Zacks Consensus Estimate for EG’s second-quarter earnings has decreased by 0.06% over the past 30 days. The estimate suggests a year-over-year decline of 10.1%.
What the Zacks Model Unveils for EG
Our proven model predicts an earnings beat for Everest Group this time. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold), which increases the chances of an earnings beat.
Earnings ESP: Everest Group has an Earnings ESP of +0.85%. This is because the Most Accurate Estimate of $15.27 is pegged higher than the Zacks Consensus Estimate of $15.14. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: EG carries a Zacks Rank #3 at present.
Factors Likely to Shape EG’s Q2 Results
Premium growth is likely to have been driven by the solid performance of EG’s Reinsurance and Insurance segments. We expect the net written premium to increase 6.6% to $4.3 billion in the second quarter.
The Insurance segment is likely to have benefited from an increase in property, short-tail business, specialty casualty business and other specialty lines of business, as well as new business. We estimate premiums earned to increase 0.6% to $915.1 million in the to-be-reported quarter.
The Reinsurance segment is expected to have benefited from solid international growth, improved property pro rata and property catastrophe excess of loss lines of business. We expect premiums earned to improve 12.6% to $3 billion in the second quarter.
Net investment income is likely to have gained from higher income from fixed maturity investments, an increase in short-term investments, as well as an increase in income from other invested assets. A decline in limited partnership income is likely to have offset the upside. We expect net investment income to be $475.6 million. The Zacks Consensus Estimate is pegged at $495 million.
The top line in the to-be-reported quarter is expected to have gained from higher net written premiums and net investment income.
Rate increases, exposure growth and traditional risk management capabilities are expected to have improved underwriting profitability, leading to an increase in the combined ratio. We expect the combined ratio to be 85.4 in the to-be-reported quarter. The Zacks Consensus Estimate for the metric is pegged at 91.
We estimate underwriting income from the Insurance segment to be $94.3 million. The same from the Reinsurance segment is expected to be $451.9 million in the to-be-reported quarter.
Total claims & expenses are likely to have increased largely owing to higher incurred losses and loss adjustment expenses, commission, brokerage, taxes and fees and other underwriting expenses. We expect the metric to increase 3.2% to $3.5 billion.
Share buybacks in the to-be-reported quarter are anticipated to have provided a boost to the bottom line.
Other Stocks to Consider
Here are some other insurance stocks you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:
The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $1.58 per share, indicating a year-over-year increase of 36.2%. AIG’s earnings beat estimates in three of the last four quarters while missing in one.
Assurant, Inc. (AIZ - Free Report) has an Earnings ESP of +1.99% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $4.43 per share, implying an increase of 8.5% from the year-ago reported figure.
AIZ’s earnings beat estimates in each of the last four quarters.
MGIC Investment Corporation (MTG - Free Report) has an Earnings ESP of +2.37% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at 70 cents per share, implying a decrease of 9.1% from the year-ago reported figure.
MTG’s earnings beat estimates in each of the last four quarters.
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Is a Beat in the Cards for Everest Group This Earnings Season?
Key Takeaways
Everest Group, Ltd. (EG - Free Report) is expected to register an improvement in its top line but a decline in its bottom line when it reports second-quarter 2025 results on July 30, after the closing bell.
The Zacks Consensus Estimate for EG’s second-quarter revenues is pegged at $4.40 billion, indicating 4.1% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at $15.14 per share. The Zacks Consensus Estimate for EG’s second-quarter earnings has decreased by 0.06% over the past 30 days. The estimate suggests a year-over-year decline of 10.1%.
What the Zacks Model Unveils for EG
Our proven model predicts an earnings beat for Everest Group this time. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold), which increases the chances of an earnings beat.
Earnings ESP: Everest Group has an Earnings ESP of +0.85%. This is because the Most Accurate Estimate of $15.27 is pegged higher than the Zacks Consensus Estimate of $15.14. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Everest Group, Ltd. Price and EPS Surprise
Everest Group, Ltd. price-eps-surprise | Everest Group, Ltd. Quote
Zacks Rank: EG carries a Zacks Rank #3 at present.
Factors Likely to Shape EG’s Q2 Results
Premium growth is likely to have been driven by the solid performance of EG’s Reinsurance and Insurance segments. We expect the net written premium to increase 6.6% to $4.3 billion in the second quarter.
The Insurance segment is likely to have benefited from an increase in property, short-tail business, specialty casualty business and other specialty lines of business, as well as new business. We estimate premiums earned to increase 0.6% to $915.1 million in the to-be-reported quarter.
The Reinsurance segment is expected to have benefited from solid international growth, improved property pro rata and property catastrophe excess of loss lines of business. We expect premiums earned to improve 12.6% to $3 billion in the second quarter.
Net investment income is likely to have gained from higher income from fixed maturity investments, an increase in short-term investments, as well as an increase in income from other invested assets. A decline in limited partnership income is likely to have offset the upside. We expect net investment income to be $475.6 million. The Zacks Consensus Estimate is pegged at $495 million.
The top line in the to-be-reported quarter is expected to have gained from higher net written premiums and net investment income.
Rate increases, exposure growth and traditional risk management capabilities are expected to have improved underwriting profitability, leading to an increase in the combined ratio. We expect the combined ratio to be 85.4 in the to-be-reported quarter. The Zacks Consensus Estimate for the metric is pegged at 91.
We estimate underwriting income from the Insurance segment to be $94.3 million. The same from the Reinsurance segment is expected to be $451.9 million in the to-be-reported quarter.
Total claims & expenses are likely to have increased largely owing to higher incurred losses and loss adjustment expenses, commission, brokerage, taxes and fees and other underwriting expenses. We expect the metric to increase 3.2% to $3.5 billion.
Share buybacks in the to-be-reported quarter are anticipated to have provided a boost to the bottom line.
Other Stocks to Consider
Here are some other insurance stocks you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:
American International Group, Inc. (AIG - Free Report) has an Earnings ESP of +0.18% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $1.58 per share, indicating a year-over-year increase of 36.2%. AIG’s earnings beat estimates in three of the last four quarters while missing in one.
Assurant, Inc. (AIZ - Free Report) has an Earnings ESP of +1.99% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $4.43 per share, implying an increase of 8.5% from the year-ago reported figure.
AIZ’s earnings beat estimates in each of the last four quarters.
MGIC Investment Corporation (MTG - Free Report) has an Earnings ESP of +2.37% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at 70 cents per share, implying a decrease of 9.1% from the year-ago reported figure.
MTG’s earnings beat estimates in each of the last four quarters.