Everest Group has reported its financial results for the third quarter of 2025, posting net income of US$255 million.
This compares to net income of US$509 million for the same period in 2024. Net operating income for the quarter was US$316 million, down from US$630 million in the previous year.
Gross written premium for the group totalled US$4.4 billion, representing a year-on-year decrease of 1.2%. The reinsurance segment saw a decrease of 1.7% in gross written premium, while the insurance segment recorded an increase of 2.7%. Growth in property and specialty lines across both segments was offset by reductions in certain casualty lines.
The combined ratio for the group stood at 103.4%. The reinsurance segment reported a combined ratio of 87.0%, while the insurance segment’s combined ratio was 138.1%, which included the strengthening of US casualty reserves. Excluding the impact of profit commissions associated with favourable loss development on mortgage business, the group’s attritional combined ratio was 88.8%.
The third quarter results follow a second quarter in which Everest Group posted a net income of US$371 million, a significant recovery from US$86 million in the same period last year. The company’s gross written premiums for Q2 rose by 6.7% to US$4.5 billion, and the combined ratio improved to 91.7% from 98.4%.
Everest president and CEO Jim Williamson (pictured above) said, “Everest has taken decisive steps to define its strategic direction and position the company for improved performance. The renewal rights transaction of our retail commercial insurance business and establishment of an adverse development cover are the outcomes of a careful strategic review of the company.”
Williamson said that these actions will provide flexibility for share repurchases, strategic opportunities, and investments in talent, technology, and data.
Net unfavourable reserve development of approximately US$478 million in prior year loss reserves resulted in a 12.4-point increase on the group’s combined ratio. Pre-tax underwriting income for the group was a loss of US$130 million, with reinsurance contributing US$376 million, insurance reporting a loss of US$357 million, and other segments a loss of US$149 million.
Pre-tax catastrophe losses net of recoveries and reinstatement premiums for the group were US$50 million, compared to US$279 million in the third quarter of 2024. Net investment income increased to US$540 million from US$496 million in the prior year quarter, attributed to a larger asset base and strong alternative investment returns. Operating cashflow for the quarter was US$1.5 billion, compared to US$1.7 billion in the same period last year.
During the quarter, Everest entered into an adverse development cover providing US$1.2 billion of gross limit across two layers, supported by Longtail Re. The first layer is US$700 million, with Everest transferring US$1.25 billion of in-the-money reserves upon closing. The second layer is US$500 million, with approximately US$122 million of consideration paid at closing.
Everest will have a co-participation of US$100 million in each layer. The cover applies to US$5.4 billion of North America Insurance and Other segment liability reserves for accident years 2024 and prior, with an effective date of October 1, 2025.
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