Based on the provided financial report articles, the title of the article is: "Form 10-Q Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2025
Everest Group, Ltd. (EG) filed its quarterly report for the period ended March 31, 2025, with the Securities and Exchange Commission. The company reported a net loss of $[amount] for the quarter, compared to a net loss of $[amount] for the same period last year. Revenue decreased by [percentage] to $[amount], primarily due to lower sales in the company’s [segment/region]. The company’s cash and cash equivalents decreased by $[amount] to $[amount] during the quarter. As of March 31, 2025, EG had 42,534,728 shares of common stock outstanding. The company is a large accelerated filer and is not an emerging growth company.
Financial Performance Overview
Everest, a global underwriting leader in property, casualty and specialty reinsurance and insurance, reported its financial results for the three months ended March 31, 2025. The company’s net income decreased 71.4% to $210 million compared to the prior year period, primarily due to higher catastrophe losses and attritional losses.
Gross written premiums decreased slightly by 0.5% to $4.4 billion, with a 1.4% increase in the Reinsurance segment offset by a 1.3% decrease in the Insurance segment and a 63.8% decline in the Other segment. Net written premiums declined 4.2% to $3.7 billion, mainly due to higher cessions to the company’s third-party capital vehicle, Mt. Logan Re.
Premiums earned increased 5.5% to $3.9 billion, driven by growth in the Reinsurance segment. However, incurred losses and loss adjustment expenses (LAE) rose 29.4% to $2.9 billion, reflecting a $449 million increase in current year catastrophe losses and a $208 million increase in attritional losses. The loss ratio deteriorated by 13.8 percentage points to 75.1%.
The combined ratio increased 13.9 percentage points to 102.7%, indicating underwriting losses. This was primarily due to the higher catastrophe and attritional losses, which more than offset improvements in the commission and other underwriting expense ratios.
Segment Performance
The Reinsurance segment, Everest’s largest business, saw gross written premiums increase 1.4% to $3.2 billion, driven by growth in property catastrophe excess of loss and property pro rata business. However, net written premiums declined 4.5% due to higher cessions to Mt. Logan Re.
Reinsurance incurred losses and LAE increased 35.6% to $2.2 billion, with the loss ratio deteriorating 16.4 percentage points to 76.5%. This was mainly attributable to a $443 million increase in current year catastrophe losses, primarily from the 2025 Southern California wildfires and the Myanmar earthquake.
The Insurance segment reported a 1.3% decrease in gross written premiums to $1.1 billion, due to portfolio actions in North America casualty and workers’ compensation lines, partially offset by growth in property/short tail and specialty business. Incurred losses and LAE increased 16.3%, driving the loss ratio up 6.9 percentage points to 70.1%.
The newly formed Other segment, which includes run-off business and the results of the sold sports and leisure unit, saw gross written premiums decline 63.8% to $28 million as these lines are in run-off. Incurred losses and LAE in this segment decreased 35.6%.
Investments and Capital
Everest’s investment portfolio grew 2.6% to $42.6 billion at March 31, 2025, primarily due to net purchases of fixed maturity securities. Net investment income increased 7.5% to $491 million, while net investment gains were flat at $7 million.
Shareholders’ equity increased 1.9% to $14.1 billion, driven by $289 million of net unrealized gains on the fixed maturity portfolio and $210 million of net income, partially offset by $200 million of share repurchases and $85 million of dividends.
The company’s regulatory capital ratios remained strong, with Bermuda Re’s and Everest Re’s actual capital exceeding targeted levels. Everest’s financial strength ratings from A.M. Best, S&P and Moody’s also remained at high levels, providing financial flexibility.
During the first quarter of 2025, Everest repurchased 574,000 common shares for $200 million and paid $85 million in dividends, demonstrating its commitment to enhancing shareholder returns.
Outlook and Challenges
Everest faces several key challenges going forward. The increase in catastrophe and attritional losses has put pressure on underwriting profitability, leading to a combined ratio above 100%. The company will need to carefully manage its risk exposures and pricing to improve underwriting results.
Additionally, the Bermuda government’s new corporate income tax and the OECD’s related guidance pose potential risks to Everest’s deferred tax assets. If the Bermuda tax regime is amended in response to the OECD guidance, it could result in a reduction of the company’s deferred tax assets.
Despite these headwinds, Everest remains a global leader in its markets, with a strong balance sheet, innovative culture and access to world-class talent. The company’s growing Insurance business also provides opportunities for diversification and value creation.
To navigate the challenges ahead, Everest will need to continue optimizing its portfolio, investing in technology and talent, and maintaining disciplined underwriting and risk management. Prudent capital management, including share repurchases and dividends, will also be crucial to delivering long-term value for shareholders.
Overall, Everest’s first quarter 2025 results reflect the volatility inherent in the (re)insurance industry, with the company facing both headwinds and opportunities. By leveraging its strengths and addressing its weaknesses, Everest is well-positioned to navigate the current environment and continue its track record of success.
