Everest Profit Falls as Reinsurance Premium Contraction Deepens
Group underwriting income declined to $281 million as the combined ratio deteriorated.
Everest Group (EG), the insurance and reinsurance company, reported lower second-quarter profit as premium contraction deepened and underwriting margins weakened.
The quarter extended a pullback in the core reinsurance business while Everest advanced its exit from commercial retail insurance. Group gross written premium fell 19.4% from a year earlier to $3.77 billion, driven largely by an 87.9% collapse in Legacy premium to $94 million.
Net income fell 17.8% from a year earlier to $559 million, or $14.22 a diluted share, from $680 million, or $16.10 a share. Net operating income declined 20.3% to $585 million, and operating earnings decreased to $14.85 a share from $17.36.
Reinsurance Treaty comparable gross written premium fell 9.1%, accelerating from an 8.5% decline in the first quarter. Casualty excess-of-loss premium dropped 25.0% and casualty pro-rata premium declined 22.8%, while property pro-rata business grew 3.4%. The segment’s combined ratio rose to 88.5% from 84.9% a year earlier, reflecting a narrower underwriting margin.
Global Wholesale & Specialty provided some offset on underwriting performance. Its combined ratio improved to 95.2% from 96.8% in the first quarter and was unchanged from a year earlier, though comparable gross written premium shifted to a 1.0% decline after growing 1.6% in the prior quarter. A higher expense ratio, attributed to portfolio mix and lower earned premium, partly offset an improved attritional loss ratio.
Group catastrophe losses rose to $94 million from $20 million a year earlier, including $75 million in Reinsurance Treaty losses driven primarily by the Iran War and several mid-sized global events. The total remained below the first quarter’s $130 million. Net investment income declined to $523 million as lower alternative-investment returns weighed on results.
The weaker earnings reduced annualized net-income return on equity to 14.2% from 18.2% a year earlier. Book value increased to $398.83 a share from $358.08, while second-quarter share repurchases nearly doubled to $395 million.
Everest also agreed to sell its Canadian retail operation, its largest remaining retail platform, following the earlier sale of global retail renewal rights to AIG. The Canadian transaction is expected to close in the second half of 2026, advancing the company’s shift away from commercial retail insurance.