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Is a Beat in the Cards for Everest Group This Earnings Season?
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Key Takeaways
EG's premium is expected to rise 4.7%, led by solid performance across Insurance and Reinsurance.
The insurance segment is likely to gain from specialty U.S. lines, and property business.
Underwriting profit is likely to improve, with a combined ratio of 84.2 and added support from buybacks.
Everest Group, Ltd. (EG - Free Report) is expected to register an improvement in its bottom line but a decline in its top line when it reports fourth-quarter 2025 results on Feb. 4, after the closing bell.
The Zacks Consensus Estimate for EG’s fourth-quarter revenues is pegged at $4.31 billion, indicating a 7% decline from the year-ago reported figure.
The consensus estimate for earnings is pegged at $13.36 per share. The Zacks Consensus Estimate for EG’s fourth-quarter earnings has increased 0.2% over the past 30 days. The estimate suggests a year-over-year increase of 172.6%.
What the Zacks Model Unveils for EG
Our proven model predicts an earnings beat for Everest Group this time around. 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 +1.72%. This is because the Most Accurate Estimate of $13.59 is pegged higher than the Zacks Consensus Estimate of $13.36. 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 Q4 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 4.7% to $4.2 billion in the second quarter.
The Insurance segment is likely to have benefited from an increase in accident and health business, increases in professional liability business and other specialty business within the U.S. portfolio, and increases in property/short tail business in Latin America and Singapore. We estimate premiums earned to increase 6% to $953.6 million in the to-be-reported quarter.
The Reinsurance segment is expected to have benefited from property pro rata business and property catastrophe excess of loss business. A decrease in financial lines business driven by actions taken on the North America casualty business is likely to have offset the upside. We expect premiums earned to improve 2.2% to $3 billion in the third quarter.
Net investment income is likely to have increased from higher limited partnership income and an increase in income from fixed maturity investments. We expect net investment income to be $330.6 million. The Zacks Consensus Estimate is pegged at $456 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 84.2 in the to-be-reported quarter. The Zacks Consensus Estimate for the metric is pegged at 93.
We estimate underwriting income from the Insurance segment to be $128.5 million. The same from the Reinsurance segment is expected to be $476.6 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 be $3.4 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 fourth-quarter 2025 earnings is pegged at $9.82 per share, indicating a year-over-year increase of 28%.
ALL’s earnings beat estimates in each of the last four quarters.
RenaissanceRe Holdings Ltd. (RNR - Free Report) has an Earnings ESP of +6.64% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is $10.59 per share, representing an 31.3% increase from the year-ago reported figure.
RNR’s earnings beat estimates in three of the last four quarters while missing in one.
The Hanover Insurance Group, Inc. (THG - Free Report) has an Earnings ESP of +11.15% and carries a Zacks Rank of 2 at present. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is $5.08 per share, representing an 4.5% decrease from the year-ago reported figure.
THG’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 bottom line but a decline in its top line when it reports fourth-quarter 2025 results on Feb. 4, after the closing bell.
The Zacks Consensus Estimate for EG’s fourth-quarter revenues is pegged at $4.31 billion, indicating a 7% decline from the year-ago reported figure.
The consensus estimate for earnings is pegged at $13.36 per share. The Zacks Consensus Estimate for EG’s fourth-quarter earnings has increased 0.2% over the past 30 days. The estimate suggests a year-over-year increase of 172.6%.
What the Zacks Model Unveils for EG
Our proven model predicts an earnings beat for Everest Group this time around. 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 +1.72%. This is because the Most Accurate Estimate of $13.59 is pegged higher than the Zacks Consensus Estimate of $13.36. 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 Q4 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 4.7% to $4.2 billion in the second quarter.
The Insurance segment is likely to have benefited from an increase in accident and health business, increases in professional liability business and other specialty business within the U.S. portfolio, and increases in property/short tail business in Latin America and Singapore. We estimate premiums earned to increase 6% to $953.6 million in the to-be-reported quarter.
The Reinsurance segment is expected to have benefited from property pro rata business and property catastrophe excess of loss business. A decrease in financial lines business driven by actions taken on the North America casualty business is likely to have offset the upside. We expect premiums earned to improve 2.2% to $3 billion in the third quarter.
Net investment income is likely to have increased from higher limited partnership income and an increase in income from fixed maturity investments. We expect net investment income to be $330.6 million. The Zacks Consensus Estimate is pegged at $456 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 84.2 in the to-be-reported quarter. The Zacks Consensus Estimate for the metric is pegged at 93.
We estimate underwriting income from the Insurance segment to be $128.5 million. The same from the Reinsurance segment is expected to be $476.6 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 be $3.4 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 Allstate Corporation (ALL - Free Report) has an Earnings ESP of +3.47% 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 fourth-quarter 2025 earnings is pegged at $9.82 per share, indicating a year-over-year increase of 28%.
ALL’s earnings beat estimates in each of the last four quarters.
RenaissanceRe Holdings Ltd. (RNR - Free Report) has an Earnings ESP of +6.64% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is $10.59 per share, representing an 31.3% increase from the year-ago reported figure.
RNR’s earnings beat estimates in three of the last four quarters while missing in one.
The Hanover Insurance Group, Inc. (THG - Free Report) has an Earnings ESP of +11.15% and carries a Zacks Rank of 2 at present. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is $5.08 per share, representing an 4.5% decrease from the year-ago reported figure.
THG’s earnings beat estimates in each of the last four quarters.