Everest Group has reported its financial results for the second quarter of 2025, recording a net income of $680 million and net operating income of $734 million for the period.
The company posted a total shareholder return of 14.8% on an annualized basis, with an annualized return on equity (ROE) of 18.2% for net income and 19.6% for net operating income. Gross written premium stood at $4.7 billion, marking a 0.7% decline year over year for the group.
Everest’s first quarter showed weaker results compared with Q2, with net income at $210 million and net operating income at $276 million. The group recorded a combined ratio of 102.7% after being hit by $472 million in pre-tax catastrophe losses, mostly due to California wildfires.
Operating cash flow for Q1 was $928 million, while investment income grew to $491 million. The improvement in Q2 earnings highlights a recovery from the first quarter’s catastrophe-driven challenges, as Everest reduced loss exposure and saw more favorable underwriting conditions in subsequent months.
The reinsurance segment reported a 1.6% increase, while the insurance segment saw a 3.3% decrease on a comparable basis. The group cited growth in property and specialty lines across both divisions, partly offset by reductions in certain casualty lines.
The combined ratio for the group was 90.4%, with reinsurance at 85.6% and insurance at 102.0%. Aviation losses linked to the Russia-Ukraine conflict contributed 2.5 percentage points to the group’s combined ratio and 3.2 points to reinsurance. Attritional combined ratios were 88.6% for the group, 84.1% for reinsurance and 100.7% for insurance.
The reinsurance unit reported net favorable development of around $39 million in prior-year loss reserves, reducing the overall combined ratio by one point.
Pre-tax underwriting income reached $385 million for the group, including $436 million from reinsurance. The insurance segment posted a $18 million loss, while other operations recorded a $33 million loss. Catastrophe losses net of recoveries and reinstatement premiums amounted to $20 million, down from $135 million in Q2 2024.
Net investment income rose slightly to $532 million compared with $528 million in the same period last year. Operating cash flow for the quarter was $1.1 billion, compared with $1.3 billion in Q2 2024.
Chief executive Jim Williamson said the quarter benefited from contributions in both underwriting and net investment income, while noting that the reinsurance business continued to perform strongly with favorable reserve development.
“As we move through the second half of 2025, we are squarely focused on execution, while at the same time, actively managing our capital to benefit shareholders,” Williamson said.
The firm also made leadership changes earlier this year. Jill Beggs was promoted to executive vice-president and CEO of reinsurance, taking on expanded responsibilities for global underwriting and strategy in the reinsurance division.
Mark Shaw was appointed chief commercial officer for international insurance, focusing on market expansion and broker relationships across Europe and Asia. Last month, Allan Levine also joined the board as an independent non-executive director, bringing decades of experience from his time at Global Atlantic and Goldman Sachs Reinsurance Group.
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