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Everest Q1 Earnings Top, Revenues Miss Estimates, Premiums Decline Y/Y
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Key Takeaways
EG Q1 EPS of $16.08 beat estimates, surging 149% YoY on strong reinsurance performance.
Everest Group investment income rose 15.5%, while underwriting swung to $316M profit.
EG revenues fell 4.6% on lower premiums, though the combined ratio improved to 91.2.
Everest Group, Ltd. (EG - Free Report) reported first-quarter 2026 operating income of $16.08 per share, which beat the Zacks Consensus Estimate by 14.6%. The bottom line increased significantly 149% year over year.
Everest Group benefited from solid investment income growth and improved catastrophe losses, which driving a sharp improvement in profitability despite weaker premiums and top-line pressure.
EG’s Q1 Operational Update
Total operating revenues of about $4 billion declined 4.6% year over year, reflecting lower premiums. The top line missed the Zacks Consensus Estimate by 7.7%.
Everest Group, Ltd. Price, Consensus and EPS Surprise
Gross written premiums fell 18.5% year over year to $3.6 billion, reflecting an 8.5% decline in Reinsurance Treaty, partially offset by growth in Global Wholesale &Specialty. Our estimate was $4.8 billion.
Net investment income rose 15.5% year over year to $567 million, driven by a larger asset base and strong alternative investment returns. The figure exceeded our estimate of $491 million and the Zacks Consensus Estimate of $513 million.
Total claims and expenses declined 17% to $3.3 billion, primarily due to lower incurred losses and loss adjustment expenses, commissions, brokerage, taxes and fees. Our estimate was $3.7 billion.
Underwriting income totaled $316 million in contrast to an underwriting loss of $104 million in the year-ago quarter.
Pre-tax catastrophe losses, net of recoveries and reinstatement premiums, were $130 million, narrower than $472 million a year ago.
The combined ratio improved 1160 basis points year over year to 91.2. The Zacks Consensus Estimate was 94.2, while our estimate was 93.9.
Q1 Segmental Update of Everest Group
Reinsurance Treaty segment generated gross written premiums of $2.7 billion, down 8.5% year over year and below our estimate of $3.6 billion. The decline reflected lower volumes in Property Non-Catastrophe XOL, Casualty Pro-Rata and Casualty XOL, which were offset by growth in Property Catastrophe XOL and Financial Lines.
The segment’s combined ratio improved to 87.2 from 104.7 a year ago. Our estimate was 91.
Global Wholesale & Specialty segment posted gross written premiums of $793 million, up 1.6% year over year. Higher premiums in Accident and Health and Other Specialty were offset by declines in Property / Short Tail, Specialty Casualty, Professional Liability and Workers' Compensation.
The combined ratio improved 110 basis points year over year to 96.8. Our estimate was 100.4.
Legacy Segment posted gross written premium declined sharply by 80.3% year over year to $135 million, reflects a limited volume of renewal and new policies tied to the commercial retail insurance business. Net premiums earned fell 26.1% year over year to $399 million.
Underwriting loss widened to $22 million from $14 million incurred in the year ago quarter.
EG’s Financial Update
Everest Group exited the first quarter of 2026 with total investments and cash of $45 billion, up 0.9% from the 2025-end level.
Shareholders’ equity fell 1.3% year over year to $15.3 billion.
Book value per share increased 1% year over year to $383.75 as of March 31, 2026.
Annualized net income return on equity improved 1110 basis points year over year to 16.8%.
Cash flow from operations totaled $649 million for the year, down 30.1% year over year.
Capital Deployment of EG
EG paid common share dividends of $80 million, or $2 per share, during the reported quarter. It repurchased $331 million worth of shares in this quarter.
Chubb Limited (CB - Free Report) reported first-quarter 2026 core operating income of $6.82 per share, which outpaced the Zacks Consensus Estimate by 5.2%. The bottom line increased 85.2% year over year.
Total operating revenues improved 11.8% year over year to $15.3 billion. The top line beat the Zacks Consensus Estimate by 3%. Net premiums written improved 10.7% year over year to $14 billion in the quarter. Our estimate was $13.6 billion, while the Zacks Consensus Estimate was pegged at $13.5 billion. Net investment income was $1.7 billion, up 9.5% year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, while our estimate was $2 billion.
Arch Capital Group Ltd. (ACGL - Free Report) reported first-quarter 2026 operating income of $2.50 per share, which beat the Zacks Consensus Estimate by 2.4%. The bottom line increased 15.4% year over year.
Operating revenues of $4.3 billion decreased 3.8% year over year, due to lower net premiums earned. Revenues missed the Zacks Consensus Estimate by 6.1%. Net premiums earned declined 4.8% year over year to $3.9 billion, due to lower premiums earned in its Reinsurance segment. The figure missed the Zacks Consensus Estimate by 6%.
Selective Insurance Group (SIGI - Free Report) reported first-quarter 2026 operating income of $1.69 per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 11% year over year.
Operating revenues of $1.4 billion increased 6.4% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. However, the top line missed the Zacks Consensus Estimate by 0.5%. Net premiums written decreased 1% to $1.3 billion. The figure was on par with our estimate.
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Everest Q1 Earnings Top, Revenues Miss Estimates, Premiums Decline Y/Y
Key Takeaways
Everest Group, Ltd. (EG - Free Report) reported first-quarter 2026 operating income of $16.08 per share, which beat the Zacks Consensus Estimate by 14.6%. The bottom line increased significantly 149% year over year.
Everest Group benefited from solid investment income growth and improved catastrophe losses, which driving a sharp improvement in profitability despite weaker premiums and top-line pressure.
EG’s Q1 Operational Update
Total operating revenues of about $4 billion declined 4.6% year over year, reflecting lower premiums. The top line missed the Zacks Consensus Estimate by 7.7%.
Everest Group, Ltd. Price, Consensus and EPS Surprise
Everest Group, Ltd. price-consensus-eps-surprise-chart | Everest Group, Ltd. Quote
Gross written premiums fell 18.5% year over year to $3.6 billion, reflecting an 8.5% decline in Reinsurance Treaty, partially offset by growth in Global Wholesale &Specialty. Our estimate was $4.8 billion.
Net investment income rose 15.5% year over year to $567 million, driven by a larger asset base and strong alternative investment returns. The figure exceeded our estimate of $491 million and the Zacks Consensus Estimate of $513 million.
Total claims and expenses declined 17% to $3.3 billion, primarily due to lower incurred losses and loss adjustment expenses, commissions, brokerage, taxes and fees. Our estimate was $3.7 billion.
Underwriting income totaled $316 million in contrast to an underwriting loss of $104 million in the year-ago quarter.
Pre-tax catastrophe losses, net of recoveries and reinstatement premiums, were $130 million, narrower than $472 million a year ago.
The combined ratio improved 1160 basis points year over year to 91.2. The Zacks Consensus Estimate was 94.2, while our estimate was 93.9.
Q1 Segmental Update of Everest Group
Reinsurance Treaty segment generated gross written premiums of $2.7 billion, down 8.5% year over year and below our estimate of $3.6 billion. The decline reflected lower volumes in Property Non-Catastrophe XOL, Casualty Pro-Rata and Casualty XOL, which were offset by growth in Property Catastrophe XOL and Financial Lines.
The segment’s combined ratio improved to 87.2 from 104.7 a year ago. Our estimate was 91.
Global Wholesale & Specialty segment posted gross written premiums of $793 million, up 1.6% year over year. Higher premiums in Accident and Health and Other Specialty were offset by declines in Property / Short Tail, Specialty Casualty, Professional Liability and Workers' Compensation.
The combined ratio improved 110 basis points year over year to 96.8. Our estimate was 100.4.
Legacy Segment posted gross written premium declined sharply by 80.3% year over year to $135 million, reflects a limited volume of renewal and new policies tied to the commercial retail insurance business. Net premiums earned fell 26.1% year over year to $399 million.
Underwriting loss widened to $22 million from $14 million incurred in the year ago quarter.
EG’s Financial Update
Everest Group exited the first quarter of 2026 with total investments and cash of $45 billion, up 0.9% from the 2025-end level.
Shareholders’ equity fell 1.3% year over year to $15.3 billion.
Book value per share increased 1% year over year to $383.75 as of March 31, 2026.
Annualized net income return on equity improved 1110 basis points year over year to 16.8%.
Cash flow from operations totaled $649 million for the year, down 30.1% year over year.
Capital Deployment of EG
EG paid common share dividends of $80 million, or $2 per share, during the reported quarter. It repurchased $331 million worth of shares in this quarter.
EG’s Zacks Rank
Everest Group currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Chubb Limited (CB - Free Report) reported first-quarter 2026 core operating income of $6.82 per share, which outpaced the Zacks Consensus Estimate by 5.2%. The bottom line increased 85.2% year over year.
Total operating revenues improved 11.8% year over year to $15.3 billion. The top line beat the Zacks Consensus Estimate by 3%. Net premiums written improved 10.7% year over year to $14 billion in the quarter. Our estimate was $13.6 billion, while the Zacks Consensus Estimate was pegged at $13.5 billion. Net investment income was $1.7 billion, up 9.5% year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, while our estimate was $2 billion.
Arch Capital Group Ltd. (ACGL - Free Report) reported first-quarter 2026 operating income of $2.50 per share, which beat the Zacks Consensus Estimate by 2.4%. The bottom line increased 15.4% year over year.
Operating revenues of $4.3 billion decreased 3.8% year over year, due to lower net premiums earned. Revenues missed the Zacks Consensus Estimate by 6.1%. Net premiums earned declined 4.8% year over year to $3.9 billion, due to lower premiums earned in its Reinsurance segment. The figure missed the Zacks Consensus Estimate by 6%.
Selective Insurance Group (SIGI - Free Report) reported first-quarter 2026 operating income of $1.69 per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 11% year over year.
Operating revenues of $1.4 billion increased 6.4% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. However, the top line missed the Zacks Consensus Estimate by 0.5%. Net premiums written decreased 1% to $1.3 billion. The figure was on par with our estimate.