Everest Group reported its first-quarter 2025 financial results, showing a decline in net income and operating income due to a significant increase in catastrophe losses.
The company posted net income of $210 million, or $4.90 per diluted share, a decrease from $733 million, or $16.87 per diluted share, in the same quarter last year. Net operating income also dropped to $276 million, or $6.45 per diluted share, compared to $709 million, or $16.32 per diluted share, in Q1 2024.
Gross written premiums for the quarter totaled $4.4 billion, reflecting a 2% decline year-over-year for the company. The reinsurance segment saw a decrease of 1.1%, while the insurance segment’s premiums declined by 0.1%.
Despite these reductions, the company saw strong growth in property and specialty lines, partially offset by declines in some casualty lines.
The combined ratio for the company was 102.7%, up from 88.8% in Q1 2024, due mainly to catastrophe losses. Pre-tax catastrophe losses amounted to $472 million, significantly higher than the $85 million recorded in Q1 2024. Of the total catastrophe losses, $442 million was related to the California wildfires.
The company’s reinsurance segment also saw pre-tax catastrophe losses of $461 million, with reinstatement premiums totaling $62 million, compared to no reinstatement premiums in the prior year.
Despite the impact of catastrophe losses, Everest’s net investment income improved to $491 million from $457 million in Q1 2024. Operating cash flow for the quarter was $928 million, down from $1.1 billion in the prior year.
Everest’s leadership, including President and CEO Jim Williamson (pictured), expressed confidence in the company’s ability to meet its return objectives, despite the higher-than-expected catastrophe losses. “We continue to see opportunities to deploy capital at excellent expected returns,” Williamson said, adding that Everest is on track with its strategic plan.
Looking ahead, Everest is optimistic about its prospects in both reinsurance and insurance, particularly in property and specialty segments, which continue to drive growth.
