Seon Place, 141 Front Street, 4thFloor,
NEWS RELEASE EVEREST GROUP, LTD. Seon Place, 141 Front Street, 4thFloor, Hamilton HM 19, Bermuda Contacts Media: Dawn Lauer Investors: Matt Rohrmann Chief Communications Officer Head of Investor Relations 908.300.7670 908.604.7343
Repurchased $474 million of Common Shares During the Quarter HAMILTON, Bermuda – (BUSINESS WIRE) – October 28, 2026 – Everest Group, Ltd. (NYSE: EG), a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions, today reported its third quarter 2026 results. “This quarter Everest generated an annualized total shareholder return of 14.2% as we executed on a number of initiatives including strengthening the balance sheet, accelerating capital return, and positioning the Company for its next chapter,” said Jim Williamson, Everest President and CEO. “Our Reinsurance Treaty team is navigating the market cycle with the highest level of discipline, while leveraging its expertise and competitive advantages to maintain our focus on bottom-line results. Our Global Wholesale & Specialty business continues to generate momentum with strong profitable growth in specialty lines and targeted international markets. Our high-quality investment portfolio contributed $634 million in net investment income. As we approach the final stretch of the year and head into 2027, we are focused on executing our strategies across our Core businesses and proactively deploying capital, where share repurchases remain a top priority.”
• Net income of $233 million, equal to $6.12 per diluted share versus third quarter 2025 net income of $255 million, equal to $6.09 per diluted share
• Net operating income of $290 million, equal to $7.62 per diluted share versus third quarter 2025 net operating income of $316 million, equal to $7.54 per diluted share
• Total Shareholder Return of 14.2% annualized 1 ; Annualized 6.0% Net Income ROE and 7.4% Net Operating Income ROE
• Book value per share of $381.04 at September 30, 2026 versus $379.83 at December 31, 2025
• Book value per share excluding unrealized gains (losses) on fixed maturity, available for sale securities of $414.00 at September 30, 2026 versus $379.70 at December 31, 2025
• $3.7 billion in gross written premium from Core businesses, a year-over-year decrease of 4.0%, which includes a 6.2% decrease for Reinsurance Treaty and a 3.2% increase for Global Wholesale & Specialty on a comparable basis
• Combined ratio of 105.8% for Core businesses, which includes 108.5% for Reinsurance Treaty and 97.3% for Global Wholesale & Specialty 1 • Attritional combined ratios of 87.0% for Core businesses, which includes 84.9% for Reinsurance Treaty and 93.7% for Global Wholesale & Specialty
• Net unfavorable reserve development of approximately $268 million in prior year loss reserves, resulting in an increase of 8.5 points on the Group combined ratio
• Pre-tax underwriting income (loss) of $(223) million for Group, $(191) million for Reinsurance Treaty, $19 million for Global Wholesale & Specialty, and $(51) million for Legacy
• Net investment income of $634 million versus $540 million in the prior year quarter, driven by higher alternative investment returns
* Core businesses consist of our Reinsurance Treaty and Global Wholesale & Specialty segments (1)Denotes annualized figure; represents Total Shareholder Return or "TSR". Annualized TSR is calculated as year to date growth in book value per common share outstanding excluding URA(D) on fixed maturity, available for sale securities plus year-to-date dividends per share.
2 The following information summarizes the Company’s underwriting results on a total reportable segments basis, Core businesses basis and by reportable segment – Reinsurance Treaty, Global Wholesale & Specialty, and Legacy, with selected commentary on these results. Underwriting Results - Total Reportable Segments
• Gross written premiums decreased 6.2% versus the prior year quarter on a comparable basis (constant dollar basis and excluding reinstatement premiums) 2 , to approximately $2.7 billion.
• Reduction in gross written premiums was primarily led by decreases of 24.8% in Casualty XOL and 15.8% in Casualty Pro-Rata, while property decreased 1.8%, when adjusting for reinstatement premiums.
• Attritional loss ratio decreased 50 basis points over third quarter 2025 to 56.3%, while the attritional combined ratio decreased 110 basis points to 84.9% versus a year ago.
• Net adverse prior year reserve development of $253 million, including gross casualty reserve strengthening of approximately $600 million, on top of the over $200 million of reserve strengthening in 2Q26.
• Pre-tax catastrophe losses were $277 million net of estimated recoveries and reinstatement premiums, driven primarily by losses from the Colombia Earthquake and events in the Middle East, as well as a number of weather-related losses globally. Pre-tax catastrophe losses were $43 million in the prior-year quarter.
Notes (2)Denotes non-GAAP financial measure. See "Comments on Non-GAAP Financial Measures" for an explanation and reconciliation. (3)Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, and prior year unfavorable (favorable) development. Attritional ratios are non-GAAP financial measures. See "Comments on Non-GAAP Financial Measures" for an explanation and reconciliation. (4)Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums.
• Gross written premiums increased 3.2% on a comparable basis (constant dollar basis and excluding reinstatement premiums) 2 , to approximately $948 million as we continued to improve the mix and quality of the portfolio.
• Growth in gross written premiums was led by increases of 27.5% in Financial Lines, 21.5% in Specialty, and 19.7% in Casualty, partially offset by decreases of 21.4% in Facultative and 6.0% in Property.
• Attritional loss ratio improved 90 basis points over third quarter 2025 to 60.0%, while the attritional combined ratio increased by 30 basis points to 93.7% versus a year ago.
• Total expense ratio increased 120 basis points to 33.7% due to mix and lower earned premium.
• Pre-tax catastrophe losses were $25 million, net of estimated recoveries and reinstatement premiums, an increase versus the prior year quarter.
Notes (2)Denotes non-GAAP financial measure. See "Comments on Non-GAAP Financial Measures" for an explanation and reconciliation. (3)Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, and prior year unfavorable (favorable) development. Attritional ratios are non-GAAP financial measures. See "Comments on Non-GAAP Financial Measures" for an explanation and reconciliation. (4)Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums. (6)On October 26, 2025 (effective October 1, 2025), the Company entered into two adverse development reinsurance agreements ("ADC"). These agreements provide coverage for potential adverse development on North American liabilities within the Global Wholesale & Specialty and Legacy segments for net losses and net LAE with dates of loss prior to January 1, 2025, that are paid on or after the effective date. To remove timing differences created by the retroactive reinsurance accounting model and improve the comparability between periods of underlying results, management excludes the following from the Global Wholesale & Specialty and Legacy segments and total reportable segment results: •Any ceded prior year favorable (unfavorable) reserve development on reserves subject to the ADC •The related amortization of the deferred gain from prior year incurred losses and LAE See "Comments on Non-GAAP Financial Measures" for a reconciliation of incurred losses and LAE and respective loss ratio metrics.
• Our Legacy segment now encompasses our commercial retail insurance business following the announcement of the commercial retail insurance renewal rights transaction.
• Net premiums earned in the quarter were largely driven by the commercial retail insurance business, which remain on track with our expectations following the announcement of the renewal rights transaction.
• Net adverse prior year reserve development of $14 million not subject to the ADC, driven by two mid-sized property losses.
Notes (2)Denotes non-GAAP financial measure. See "Comments on Non-GAAP Financial Measures" for an explanation and reconciliation. (6)On October 26, 2025 (effective October 1, 2025), the Company entered into two adverse development reinsurance agreements ("ADC"). These agreements provide coverage for potential adverse development on North American liabilities within the Global Wholesale & Specialty and Legacy segments for net losses and net LAE with dates of loss prior to January 1, 2025, that are paid on or after the effective date. To remove timing differences created by the retroactive reinsurance accounting model and improve the comparability between periods of underlying results, management excludes the following from the Global Wholesale & Specialty and Legacy segments and total reportable segment results: •Any ceded prior year favorable (unfavorable) reserve development on reserves subject to the ADC •The related amortization of the deferred gain from prior year incurred losses and LAE See "Comments on Non-GAAP Financial Measures" for a reconciliation of incurred losses and LAE and respective loss ratio metrics.
7 This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. Forward-looking statements reflect management’s current expectations based on assumptions we believe are reasonable but are not guarantees of performance. Actual results may differ materially from those contained in forward-looking statements made on behalf of the Company. Forward- looking statements involve risks and uncertainties that include, but are not limited to, the impact of general economic conditions and conditions affecting the insurance and reinsurance industry, the adequacy of our reserves, our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, our ability to execute divestitures, obtain regulatory approvals and effectuate strategic transactions, including the sale of our retail commercial insurance business, investment market and investment income fluctuations, trends in insured and paid losses, catastrophes, pandemics, regulatory developments and legal uncertainties, expenses related to divestitures and other factors described in our SEC filings, including but not limited to our latest Annual Report on Form 10-K and quarterly reports on Form 10-Q. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. About Everest Everest Group, Ltd. (Everest) is a global underwriting leader providing best-in- class property, casualty, and specialty reinsurance and insurance solutions that address customers’ most pressing challenges. Known for a 50-year track record of disciplined underwriting, capital and risk management, Everest, through its global operating affiliates, is committed to underwriting opportunity for colleagues, customers, shareholders, and communities worldwide.
Additional information about Everest, our people, and our products can be found on our website at www.everestglobal.com . A conference call discussing the results will be held at 8:00 a.m. Eastern Time on Thursday October 29, 2026. The call will be available on the Internet through the Company’s website at https://investors.everestglobal.com/overview.
Recipients are encouraged to visit the Company’s website to view supplemental financial information on the Company’s results. The supplemental information is located at www.everestglobal.com in the “Investors/Financials/Quarterly Results” section of the website. The supplemental financial information may also be obtained by contacting the Company directly. _______________________________________________ 8
In this Press Release, the Company has included certain non-GAAP financial measures which include the following:
• after-tax net operating income (loss) and after-tax net operating income (loss) per diluted share,
• book value per common share outstanding excluding net unrealized appreciation (depreciation) on fixed maturity, available for sale securities ("URA(D)"),
• net reserves for losses and loss adjustment expenses before the impact of ADC (Legacy Segment Metric),
The Company has also presented results of its "Core" businesses, consisting of the Reinsurance Treaty and Global Wholesale & Specialty segments (excluding the Legacy segment), to reflect the businesses that are the Company's primary strategic focus. The Company presents these non-GAAP financial measures to facilitate a deeper understanding of the profitability drivers of our business, results of operations, financial condition and liquidity. The Company believes that such measures are important to investors and other interested persons, and that these measures are a useful supplement to GAAP information concerning the Company’s performance. These measures may not, however, be comparable to similarly titled measures used by companies within or outside of the insurance industry. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, or superior to, the Company’s financial measures prepared in accordance with generally accepted accounting principles ("GAAP").
A reconciliation of the non-GAAP financial measures to the most comparable corresponding GAAP financial measures is included below. 9 After-tax net operating income (loss) and after-tax net operating income (loss) per diluted share
After-tax net operating income (loss) (also referred to in this release as net operating income) consists of net income (loss) excluding after-tax acquisition, divestiture and restructuring costs, after-tax ceded prior year unfavorable (favorable) loss reserve development on reserves that are subject to the external adverse development cover ("ADC") and the related amortization of the deferred gain, after-tax net gains (losses) on investments and after-tax net foreign exchange income (expense), as shown below:
Although net gains (losses) on investments and net foreign exchange income (expense) are an integral part of the Company’s insurance operations, the determination of net gains (losses) on investments and foreign exchange income (expense) is independent of the insurance underwriting process. The Company believes that the level of net gains (losses) on investments and net foreign exchange income (expense) for any particular period are not indicative of the performance of the underlying business in that particular period. Additionally, the Company believes acquisition, divestiture and restructuring costs, which are comprised of transactional gain (losses) and one-time expenses, are of a non- recurring nature as they are associated with acquiring or divesting businesses and restructuring activities. Lastly, the retroactive reinsurance accounting model applied to the ADC creates volatility in the statement of operations that is not representative of the underlying economic substance of the transaction. Management is excluding the ceded prior year favorable (unfavorable) reserve development on reserves that are subject to the ADC and the related amortization of the deferred gain from the after-tax net operating income to improve comparability between periods and to remove this timing difference created by the retroactive reinsurance accounting model from its net operating income measure.
Providing only a GAAP presentation of net income (loss) makes it more difficult for users of the financial information to evaluate the Company’s success or failure in its basic business and may lead to incorrect or misleading assumptions and conclusions. The Company understands that the equity analysts who follow the Company focus on after-tax net operating income (loss) in their analyses for the reasons discussed above. The Company provides after-tax net operating income (loss) to investors so that they have what management believes to be a useful supplement to GAAP information concerning the Company’s performance. 10
Net Operating Income ROE (also referred to as operating ROE) is calculated by dividing after-tax net operating income (loss) by average shareholders' equity, adjusted for average net unrealized depreciation (appreciation) of fixed maturity, available for sale securities. A reconciliation of net income, the most comparable GAAP measure, to net operating income is presented above. The Company believes net operating income ROE is a useful measure for management and investors as it allows for better comparability and removes variability when assessing the results of operations. A reconciliation of Net Operating Income ROE and Net Income ROE is shown below.
Book value per common share outstanding excluding net unrealized appreciation (depreciation) of fixed maturity, available for sale securities ("URA(D)") is calculated as reported shareholders' equity less URA(D), divided by common shares outstanding. Book value per share is the most comparable GAAP measure. The Company believes this metric is useful to management and investors as it shows the value of shareholder returns on a per share basis after eliminating the variability of investments held at fair value. Please see the table below for a reconciliation of book value per common share outstanding (excluding URA(D)) and book value per share.
Annualized TSR ("TSR") is calculated as year-to-date growth in book value per common share outstanding (excluding URA(D)) plus year-to-date dividends per share. As further discussed above, book value per common share outstanding (excluding URA(D)) is a non-GAAP measure. Please see the table below for a reconciliation of book value per common share outstanding (excluding URA(D)) and book value per share.
(Dollars in millions, As of except per share September 30, September 30, amounts) 2026 2025 ────────────────────────────────────────────────────────────────────────────── End of period $ 14,252 $ 15,375 shareholders' equity Net URA(D) 1,233 87 Adjusted end of period shareholders' $ 15,485 $ 15,462 equity Common shares 37.4 42.0 outstanding Book value per common $ 381.04 $ 366.22 share outstanding Less: URA(D) of fixed maturity, available -32.96 -2.07 for sale securities Book value per common share outstanding $ 414.00 $ 368.29 (excluding URA(D)) Total Shareholder 14.2% 12.3% Return (TSR) (Some amounts may not reconcile due to rounding.)
Underwriting income (loss) is calculated as net premiums earned, less (1) incurred losses and loss adjustment expenses adjusted to exclude ceded prior year favorable (unfavorable) reserve development on reserves subject to the ADC and the related amortization of the deferred gain, (2) commission, brokerage, taxes and fees, and (3) other underwriting expenses. Net income (loss) is the most comparable GAAP measure. The Company believes underwriting income is a useful measure for management and investors when assessing the performance of the Company's reinsurance and insurance business segments. Core businesses consist of the Reinsurance Treaty and Global Wholesale & Specialty segments (excluding the Legacy segment) to reflect the businesses that are the Company's primary strategic focus. A reconciliation of Underwriting Income (Loss) and Net Income is shown below.
13 Net reserve for losses and loss adjustment expenses before impact of the ADC (Legacy Segment Metric)
Net reserve for losses and loss adjustment expenses (“LAE”) before impact of the ADC is calculated as reserve for losses and LAE, less unpaid reinsurance loss recoverable adjusted to exclude the unpaid recoverable of the ADC reinsurance agreements. Due to the run-off nature of the Legacy business and the Company’s focus on managing and settling existing liabilities, the company introduced net reserves for losses and LAE before impact of the ADC as a Legacy segment performance measure to better align with how management evaluates the business. This measure is not meaningful for the Global Wholesale & Specialty and the Reinsurance Treaty segments so it is not used as a measure to manage these segments.
T he following table is a reconciliation of the Legacy reserve for losses and LAE including and excluding the impact of ADC for the periods noted:
The loss ratio is calculated as the sum of total incurred losses and loss adjustment expenses less the ceded prior year favorable (unfavorable) reserve development on reserves subject to the ADC and the related amortization of the deferred gain, divided by net premiums earned. The combined ratio is calculated as the sum of total incurred losses and loss adjustment expenses less the ceded prior year favorable (unfavorable) reserve development on reserves subject to the ADC and the related amortization of the deferred gain, commission and brokerage expenses, and other underwriting expenses, divided by net premiums earned. The attritional loss ratio and attritional combined ratio are defined as the loss ratio and the combined ratio, respectively, adjusted to exclude catastrophe losses, net catastrophe reinstatement premiums, and prior year development. The Company believes the attritional ratios are useful to management and investors because the adjusted ratios provide for better comparability and more accurately measure the Company’s underlying underwriting performance. Core businesses consist of the Reinsurance Treaty and Global Wholesale & Specialty segments (excluding the Legacy segment) to reflect the businesses that are the Company's primary strategic focus. The following tables are a reconciliation of the loss ratio and attritional loss ratio, and the combined ratio and attritional combined ratio for the periods noted:
The Company has included in this Press Release certain changes in gross written premium on a comparable basis, reflecting constant currency basis and excluding reinstatement premiums. Constant currency basis excludes the impact of foreign exchange rates. The Company provides change in gross written premium on a comparable basis to investors so that they have what management believes to be a useful supplement to GAAP information concerning the Company’s performance. Core businesses consist of the Reinsurance Treaty and Global Wholesale & Specialty segments (excluding the Legacy segment) to reflect the businesses that are the Company's primary strategic focus. The following tables are a reconciliation of gross written premium and period-over-period changes on a GAAP basis to the non- GAAP comparable basis for the periods noted:
(In millions of U.S. dollars, except par value per share) ASSETS: Fixed maturities - September 30, available for sale, at 2026 December 31, fair value (unaudited) 2025 ────────────────────────────────────────────────────────────────────────────── (amortized cost: 2026, $34,680; 2025, $34,620, credit $ 33,058 $ 34,573 allowances: 2026, $(115); 2025, $(68)) Fixed maturities - held to maturity, at amortized cost (fair value: 2026, $549; 2025, $576, net of credit 563 567 allowances: 2026, $(7); 2025, $(6)) Equity securities, at 161 180 fair value Other invested assets 6,141 5,796 Short-term investments 3,055 2,994 Cash 987 1,318 Total investments and 43,965 45,429 cash Accrued investment 408 436 income Premiums receivable (net of credit allowances: 5,828 5,727 2026, $(112); 2025, $(94)) Reinsurance loss recoverables (net of credit allowances: 5,196 5,110 2026, $(62); 2025, $(57)) Funds held by 1,392 1,326 reinsureds Deferred acquisition 1,460 1,546 costs Prepaid reinsurance 871 653 premiums Income tax asset, net 1,322 915 Other assets (net of credit allowances: 1,609 1,372 2026, $(17); 2025, $(17)) TOTAL ASSETS $ 62,052 $ 62,514 LIABILITIES: Reserve for losses and loss adjustment 35,288 34,312 expenses Unearned premium 6,409 7,275 reserve Funds held under 273 267 reinsurance treaties Amounts due to 1,013 642 reinsurers Losses in course of 213 151 payment Senior notes 2,353 2,352 Long-term notes 218 218 Borrowings from FHLB 1,019 1,019 Accrued interest on 43 21 debt and borrowings Unsettled securities 30 — payable Other liabilities 943 797 Total liabilities 47,800 47,054 SHAREHOLDERS' EQUITY: Preferred shares, par value: $0.01; 50.0 shares — — authorized; no shares issued and outstanding Common shares, par value: $0.01; 200.0 shares authorized; 74.5 (2026) and 74.4 (2025) shares issued and 1 1 outstanding Additional paid-in 3,891 3,852 capital Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) of $(335) at 2026 and -1,314 -52 $(23) at 2025 Treasury shares, at cost; 37.1 (2026) -6,104 -4,906 and 33.7 (2025) Retained earnings 17,777 16,565 Total shareholders' 14,252 15,461 equity TOTAL LIABILITIES AND SHAREHOLDERS' $ 62,052 $ 62,514 EQUITY
(In millions of U.S. Nine Months Ended dollars) September 30, CASH FLOWS FROM OPERATING 2026 ACTIVITIES: (unaudited) 2025 ────────────────────────────────────────────────────────────────────────────── Net income (loss) $ 1,445 $ 1,145 Adjustments to reconcile net income to net cash provided by operating activities: Decrease (increase) in premiums -158 -417 receivable Decrease (increase) in funds held by -62 -43 reinsureds, net Decrease (increase) in reinsurance -284 -266 recoverables Decrease (increase) in -106 80 income taxes Decrease (increase) in prepaid -255 77 reinsurance premiums Increase (decrease) in reserve for 1,251 3,086 losses and loss adjustment expenses Increase (decrease) in -812 -48 unearned premiums Increase (decrease) in amounts due to 425 213 reinsurers Increase (decrease) in losses in course 62 -23 of payment Change in equity adjustments in limited -424 -242 partnerships Distribution of limited partnership 176 128 income Change in other assets and liabilities, 302 -204 net Non-cash compensation 58 43 expense Amortization of bond premium (accrual of -98 -122 bond discount) Net (gains) losses on 86 59 investments Net cash provided by (used in) operating 1,606 3,466 activities CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from fixed maturities matured/called/repaid - 3,201 3,376 available for sale Proceeds from fixed maturities sold - 1,485 933 available for sale Proceeds from fixed maturities 91 156 matured/called/repaid - held to maturity Proceeds from fixed maturities sold - — 10 held to maturity Proceeds from equity 36 55 securities sold Distributions from other 202 266 invested assets Cost of fixed maturities acquired - -4,948 -8,021 available for sale Cost of fixed maturities acquired - held -84 -6 to maturity Cost of equity securities -3 -2 acquired Cost of other invested -325 -406 assets acquired Net change in short-term -47 945 investments Net change in unsettled securities 22 -66 transactions Net cash provided by (used in) investing -369 -2,759 activities CASH FLOWS FROM FINANCING ACTIVITIES: Common shares issued (redeemed) during the period for share-based -18 -19 compensation, net of expense Purchase of net treasury -1,198 -400 shares Dividends paid to -233 -253 shareholders Cost of shares withheld on settlements -24 -20 of share-based compensation awards Net cash provided by (used in) financing -1,474 -693 activities EFFECT OF EXCHANGE RATE 47 -24 CHANGES ON CASH Net change in cash including balances -190 -10 classified as held-for-sale Net change in cash balances classified -141 — as held-for-sale Cash, beginning of period 1,318 1,549 Cash, end of period $ 987 $ 1,539 SUPPLEMENTAL CASH FLOW INFORMATION: Income taxes paid $ 342 $ 98 (recovered) Interest paid 106 91 NON-CASH TRANSACTIONS: Non-cash limited partnership $ — $ 8 distribution Non-cash restructure of equity 20 — securities and other invested assets Non-cash restructure of fixed maturity securities - available for 6 — sale and equity securities
Full text with the tables
NEWS RELEASE
EVEREST GROUP, LTD.
Seon Place, 141 Front Street, 4thFloor,
Hamilton
HM 19, Bermuda
Contacts
Media: Dawn Lauer Investors: Matt Rohrmann
Chief Communications Officer Head of Investor Relations
908.300.7670 908.604.7343
Everest Reports Third Quarter 2026 Results
Annualized Total Shareholder Return of 14.2%
Strengthened Casualty Reinsurance Reserves
Repurchased $474 million of Common Shares During the Quarter
HAMILTON, Bermuda – (BUSINESS WIRE) – October 28, 2026 – Everest Group, Ltd.
(NYSE: EG), a global underwriting leader providing best-in-class property,
casualty, and specialty reinsurance and insurance solutions, today reported its
third quarter 2026 results.
“This quarter Everest generated an annualized total shareholder return of 14.2%
as we executed on a number of initiatives including strengthening the balance
sheet, accelerating capital return, and positioning the Company for its next
chapter,” said Jim Williamson, Everest President and CEO. “Our Reinsurance
Treaty team is navigating the market cycle with the highest level of discipline,
while leveraging its expertise and competitive advantages to maintain our focus
on bottom-line results. Our Global Wholesale & Specialty business continues to
generate momentum with strong profitable growth in specialty lines and targeted
international markets. Our high-quality investment portfolio contributed $634
million in net investment income. As we approach the final stretch of the year
and head into 2027, we are focused on executing our strategies across our Core
businesses and proactively deploying capital, where share repurchases remain a
top priority.”
Third Quarter 2026 Highlights
• Net income of $233 million, equal to $6.12 per diluted share versus third
quarter 2025 net income of $255 million, equal to $6.09 per diluted share
• Net operating income of $290 million, equal to $7.62 per diluted share versus
third quarter 2025 net operating income of $316 million, equal to $7.54 per
diluted share
• Total Shareholder Return of 14.2% annualized 1 ; Annualized 6.0% Net Income
ROE and 7.4% Net Operating Income ROE
• Book value per share of $381.04 at September 30, 2026 versus $379.83 at
December 31, 2025
• Book value per share excluding unrealized gains (losses) on fixed maturity,
available for sale securities of $414.00 at September 30, 2026 versus $379.70 at
December 31, 2025
• $3.7 billion in gross written premium from Core businesses, a year-over-year
decrease of 4.0%, which includes a 6.2% decrease for Reinsurance Treaty and a
3.2% increase for Global Wholesale & Specialty on a comparable basis
• Combined ratio of 105.8% for Core businesses, which includes 108.5% for
Reinsurance Treaty and 97.3% for Global Wholesale & Specialty
1
• Attritional combined ratios of 87.0% for Core businesses, which includes 84.9%
for Reinsurance Treaty and 93.7% for Global Wholesale & Specialty
• Net unfavorable reserve development of approximately $268 million in prior
year loss reserves, resulting in an increase of 8.5 points on the Group combined
ratio
• Pre-tax underwriting income (loss) of $(223) million for Group, $(191) million
for Reinsurance Treaty, $19 million for Global Wholesale & Specialty, and $(51)
million for Legacy
• Net investment income of $634 million versus $540 million in the prior year
quarter, driven by higher alternative investment returns
* Core businesses consist of our Reinsurance
Treaty and Global Wholesale & Specialty segments
(1)Denotes annualized figure; represents Total
Shareholder Return or "TSR". Annualized TSR is
calculated as year to date growth in book value
per common share outstanding excluding URA(D) on
fixed maturity, available for sale securities plus
year-to-date dividends per share.
Consolidated Financial Summary
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2
The following information summarizes the Company’s underwriting results on a
total reportable segments basis, Core businesses basis and by reportable segment
– Reinsurance Treaty, Global Wholesale & Specialty, and Legacy, with selected
commentary on these results.
Underwriting Results - Total Reportable Segments
Q… Y…
S… S… S… S…
3… 3… 3… 3…
2… 2… C… 2… 2… C…
──────────────────────────────────────────────────────────────────────────────
…
… $ 3… $ 4… (… $ 11… $ 13… (1…
…
…
… $ 2… $ 3… (… $ 9,… $ 11… (2…
…
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… $ 3… $ 3… (… $ 10… $ 11… (1…
…
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… 5… 5… (… 59… 60… (1…
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… p… pts
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p… pts
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… 7… 7… p… 66… 70… pts
…
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… 2… 2… 0… 23… 22… 1.1
… p… pts
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… 6… 6… p… 6.… 6.… pts
…
… 1… 1… 3… 96… 98… (2…
… p… pts
… (… (0…
… 8… 8… p… 88… 89… pts
…
…
… $ 3… $ 50 $ 546 $ 542
…
…
…
…
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… $ 2… $ 4… $ 226 $ 537
…
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&
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&
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a
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3
Underwriting Results - Core Businesses 2
Q… Y…
S… S… S… S…
3… 3… 3… 3…
2… 2… C… 2… 2… C…
──────────────────────────────────────────────────────────────────────────────
…
… $ 3… $ 3… (… $ 10… $ 11… (5…
…
…
… $ 2… $ 3… (… $ 8,… $ 10… (1…
…
…
… $ 2… $ 3… (… $ 9,… $ 10… (7…
…
…
…
…
…
… 5… 5… (… 57… 58… (0…
… p… pts
…
… 8… (… 8… 2.… 0.… 1.8
… p… pts
…
… 1… 1… 9… 5.… 5.… (0…
p… pts
… 1… 0.9
… 7… 5… p… 65… 64… pts
…
…
… 2… 2… (… 24… 24… 0.2
… p… pts
…
… 0… 0.8
… 5… 4… p… 5.… 4.… pts
…
… 1… 8… 1… 94… 92… 1.9
… p… pts
… (… (0…
… 8… 8… p… 87… 87… pts
…
…
… $ 3… $ 48 $ 507 $ 514
…
…
…
…
…
… $ 2… $ -7 $ 211 $ 54
…
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&
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4
Underwriting Results - Reinsurance Treaty Segment
Q… Ye…
S… S… Se… Se…
3… 3… 30, 30,
2… 2… C… 20… 20… Ch…
…
… 2… 2… (… 8… 8… (…
…
…
… 2… 2… (… 6… 7… (…
…
…
… 2… 2… (… 7… 7… (…
…
…
…
…
…
… 5… 5… (… 5… 5… (…
… p… p…
…
… 1… (… 1… 3… 0… 2…
… p… p…
…
… 1… 1… 1… 6… 7… (…
p… p…
… 2… 1…
… 8… 5… p… 6… 6… p…
…
…
… 2… 2… (… 2… 2… 0…
… p… p…
…
… 0… 0…
… 2… 2… p… 2… 2… p…
…
… 1… 8… 2… 9… 9… 2…
… p… p…
… (… (…
… 8… 8… p… 8… 8… p…
…
…
… 2… 43 4… 4…
…
…
…
…
…
… 2… -… 2… 43
…
…
…
…
…
…
…
…
…
…
…
• Gross written premiums decreased 6.2% versus the prior year quarter on a
comparable basis (constant dollar basis and excluding reinstatement premiums) 2
, to approximately $2.7 billion.
• Reduction in gross written premiums was primarily led by decreases of 24.8% in
Casualty XOL and 15.8% in Casualty Pro-Rata, while property decreased 1.8%, when
adjusting for reinstatement premiums.
• Attritional loss ratio decreased 50 basis points over third quarter 2025 to
56.3%, while the attritional combined ratio decreased 110 basis points to 84.9%
versus a year ago.
• Net adverse prior year reserve development of $253 million, including gross
casualty reserve strengthening of approximately $600 million, on top of the over
$200 million of reserve strengthening in 2Q26.
• Pre-tax catastrophe losses were $277 million net of estimated recoveries and
reinstatement premiums, driven primarily by losses from the Colombia Earthquake
and events in the Middle East, as well as a number of weather-related losses
globally. Pre-tax catastrophe losses were $43 million in the prior-year quarter.
Notes
(2)Denotes non-GAAP financial measure. See
"Comments on Non-GAAP Financial Measures" for an
explanation and reconciliation.
(3)Attritional ratios exclude catastrophe losses,
net CAT reinstatement premiums earned, and prior
year unfavorable (favorable) development.
Attritional ratios are non-GAAP financial
measures. See "Comments on Non-GAAP Financial
Measures" for an explanation and reconciliation.
(4)Pre-tax net catastrophe losses are net of
reinsurance and reinstatement premiums.
5
Underwriting Results - Global Wholesale & Specialty Segment
Q… Ye…
S… S… Se… Se…
3… 3… 30, 30,
2… 2… C… 20… 20… Ch…
──────────────────────────────────────────────────────────────────────────────
…
… $ 9… $ 9… 3… $ 2… $ 2… 2…
…
…
… $ 7… $ 7… (… $ 2… $ 2… (…
…
…
… $ 7… $ 7… (… $ 2… $ 2… (…
…
…
…
…
…
… 6… 6… (… 5… 6… (…
… p… p…
…
… —% 1… (… (… 0… (…
… p… p…
…
… 3… 0… 2… 3… 1… 1…
p… p…
… 0… (…
… 6… 6… p… 6… 6… p…
…
…
… 2… 2… 0… 2… 2… 1…
… p… p…
…
… 0… 1…
… 1… 1… p… 1… 1… p…
…
… 9… 9… 1… 9… 9… 0…
… p… p…
… 0… (…
… 9… 9… p… 9… 9… p…
…
…
… $ 25 $ 6 $ 65 $ 25
…
…
…
…
…
… $ — $ 9 $ -9 $ 10
…
…
…
…
…
…
…
…
…
…
…
• Gross written premiums increased 3.2% on a comparable basis (constant dollar
basis and excluding reinstatement premiums) 2 , to approximately $948 million as
we continued to improve the mix and quality of the portfolio.
• Growth in gross written premiums was led by increases of 27.5% in Financial
Lines, 21.5% in Specialty, and 19.7% in Casualty, partially offset by decreases
of 21.4% in Facultative and 6.0% in Property.
• Attritional loss ratio improved 90 basis points over third quarter 2025 to
60.0%, while the attritional combined ratio increased by 30 basis points to
93.7% versus a year ago.
• Total expense ratio increased 120 basis points to 33.7% due to mix and lower
earned premium.
• Pre-tax catastrophe losses were $25 million, net of estimated recoveries and
reinstatement premiums, an increase versus the prior year quarter.
Notes
(2)Denotes non-GAAP financial measure. See
"Comments on Non-GAAP Financial Measures" for an
explanation and reconciliation.
(3)Attritional ratios exclude catastrophe losses,
net CAT reinstatement premiums earned, and prior
year unfavorable (favorable) development.
Attritional ratios are non-GAAP financial
measures. See "Comments on Non-GAAP Financial
Measures" for an explanation and reconciliation.
(4)Pre-tax net catastrophe losses are net of
reinsurance and reinstatement premiums.
(6)On October 26, 2025 (effective October 1, 2025), the Company entered into
two adverse development reinsurance agreements ("ADC"). These agreements
provide coverage for potential adverse development on North American
liabilities within the Global Wholesale & Specialty and Legacy segments for
net losses and net LAE with dates of loss prior to January 1, 2025, that are
paid on or after the effective date. To remove timing differences created by
the retroactive reinsurance accounting model and improve the comparability
between periods of underlying results, management excludes the following
from the Global Wholesale & Specialty and Legacy segments and total
reportable segment results:
•Any ceded prior year favorable (unfavorable) reserve development on
reserves subject to the ADC
•The related amortization of the deferred gain from prior year incurred
losses and LAE
See "Comments on Non-GAAP Financial Measures" for a reconciliation of
incurred losses and LAE and respective loss ratio metrics.
6
Underwriting Results - Legacy Segment
Qu…
Se… Se…
30, 30, Se… S…
20… 20… Ye… 20… 30, 20… 3…
──────────────────────────────────────────────────────────────────────────────
G…
w… $ 79 $ 590 $ 308 $ 2,…
p…
N…
w… $ 57 $ 444 $ 218 $ 1,…
p…
N…
p… $ 208 $ 539 $ 929 $ 1,…
e…
I…
l…
a…
L…
C… 152 395 702 1,…
y…
P…
y… 14 486 14 484
u…
(…
C… 20 2 39 28
T…
i…
l… 186 882 755 1,…
a…
L…
C…
b…
t… 26 50 108 144
a…
f…
O…
u… 46 105 175 324
e…
U…
i… $ -51 $ -4… $ -1… $ -5…
(…
(…
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• Our Legacy segment now encompasses our commercial retail insurance business
following the announcement of the commercial retail insurance renewal rights
transaction.
• Net premiums earned in the quarter were largely driven by the commercial
retail insurance business, which remain on track with our expectations following
the announcement of the renewal rights transaction.
• Net adverse prior year reserve development of $14 million not subject to the
ADC, driven by two mid-sized property losses.
Notes
(2)Denotes non-GAAP financial measure. See
"Comments on Non-GAAP Financial Measures" for an
explanation and reconciliation.
(6)On October 26, 2025 (effective October 1, 2025), the Company entered into
two adverse development reinsurance agreements ("ADC"). These agreements
provide coverage for potential adverse development on North American
liabilities within the Global Wholesale & Specialty and Legacy segments for
net losses and net LAE with dates of loss prior to January 1, 2025, that are
paid on or after the effective date. To remove timing differences created by
the retroactive reinsurance accounting model and improve the comparability
between periods of underlying results, management excludes the following
from the Global Wholesale & Specialty and Legacy segments and total
reportable segment results:
•Any ceded prior year favorable (unfavorable) reserve development on
reserves subject to the ADC
•The related amortization of the deferred gain from prior year incurred
losses and LAE
See "Comments on Non-GAAP Financial Measures" for a reconciliation of
incurred losses and LAE and respective loss ratio metrics.
7
This news release contains forward-looking statements within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and other U.S.
federal securities laws. We intend these forward-looking statements to be
covered by the safe harbor provisions for forward-looking statements in the U.S.
federal securities laws. Forward-looking statements reflect management’s current
expectations based on assumptions we believe are reasonable but are not
guarantees of performance. Actual results may differ materially from those
contained in forward-looking statements made on behalf of the Company. Forward-
looking statements involve risks and uncertainties that include, but are not
limited to, the impact of general economic conditions and conditions affecting
the insurance and reinsurance industry, the adequacy of our reserves, our
ability to assess underwriting risk, trends in rates for property and casualty
insurance and reinsurance, competition, our ability to execute divestitures,
obtain regulatory approvals and effectuate strategic transactions, including the
sale of our retail commercial insurance business, investment market and
investment income fluctuations, trends in insured and paid losses, catastrophes,
pandemics, regulatory developments and legal uncertainties, expenses related to
divestitures and other factors described in our SEC filings, including but not
limited to our latest Annual Report on Form 10-K and quarterly reports on Form
10-Q. The Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
About Everest
Everest Group, Ltd. (Everest) is a global underwriting leader providing best-in-
class property, casualty, and specialty reinsurance and insurance solutions that
address customers’ most pressing challenges. Known for a 50-year track record of
disciplined underwriting, capital and risk management, Everest, through its
global operating affiliates, is committed to underwriting opportunity for
colleagues, customers, shareholders, and communities worldwide.
Everest common stock (NYSE: EG) is a component of the S&P 500 index.
Additional information about Everest, our people, and our products can be found
on our website at www.everestglobal.com .
A conference call discussing the results will be held at 8:00 a.m. Eastern Time
on Thursday October 29, 2026. The call will be available on the Internet through
the Company’s website at https://investors.everestglobal.com/overview.
Recipients are encouraged to visit the Company’s website to view supplemental
financial information on the Company’s results. The supplemental information is
located at www.everestglobal.com in the “Investors/Financials/Quarterly Results”
section of the website. The supplemental financial information may also be
obtained by contacting the Company directly.
_______________________________________________
8
Comments on Non-GAAP Financial Measures
In this Press Release, the Company has included certain non-GAAP financial
measures which include the following:
• after-tax net operating income (loss) and after-tax net operating income
(loss) per diluted share,
• net operating income return on equity ("ROE"),
• book value per common share outstanding excluding net unrealized appreciation
(depreciation) on fixed maturity, available for sale securities ("URA(D)"),
• Annualized Total Shareholder Return,
• underwriting income (loss),
• net reserves for losses and loss adjustment expenses before the impact of ADC
(Legacy Segment Metric),
• attritional loss ratio,
• attritional combined ratio, and
• gross written premiums presented on a comparable basis.
The Company has also presented results of its "Core" businesses, consisting of
the Reinsurance Treaty and Global Wholesale & Specialty segments (excluding the
Legacy segment), to reflect the businesses that are the Company's primary
strategic focus. The Company presents these non-GAAP financial measures to
facilitate a deeper understanding of the profitability drivers of our business,
results of operations, financial condition and liquidity. The Company believes
that such measures are important to investors and other interested persons, and
that these measures are a useful supplement to GAAP information concerning the
Company’s performance. These measures may not, however, be comparable to
similarly titled measures used by companies within or outside of the insurance
industry. Non-GAAP financial measures should be viewed in addition to, and not
as an alternative for, or superior to, the Company’s financial measures prepared
in accordance with generally accepted accounting principles ("GAAP").
A reconciliation of the non-GAAP financial measures to the most comparable
corresponding GAAP financial measures is included below.
9
After-tax net operating income (loss) and after-tax net operating income (loss)
per diluted share
After-tax net operating income (loss) (also referred to in this release as net
operating income) consists of net income (loss) excluding after-tax acquisition,
divestiture and restructuring costs, after-tax ceded prior year unfavorable
(favorable) loss reserve development on reserves that are subject to the
external adverse development cover ("ADC") and the related amortization of the
deferred gain, after-tax net gains (losses) on investments and after-tax net
foreign exchange income (expense), as shown below:
… …
… …
… …
… …
… … … … … …
… … … … … …
… … … … … … … … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … $ … $ … $ … $ … $ $
… … — — … …
— — — — 7 …
… … … … … …
… … … … … …
$ … $ … $ … $ … $ … $ … $ $
Although net gains (losses) on investments and net foreign exchange income
(expense) are an integral part of the Company’s insurance operations, the
determination of net gains (losses) on investments and foreign exchange income
(expense) is independent of the insurance underwriting process. The Company
believes that the level of net gains (losses) on investments and net foreign
exchange income (expense) for any particular period are not indicative of the
performance of the underlying business in that particular period. Additionally,
the Company believes acquisition, divestiture and restructuring costs, which are
comprised of transactional gain (losses) and one-time expenses, are of a non-
recurring nature as they are associated with acquiring or divesting businesses
and restructuring activities. Lastly, the retroactive reinsurance accounting
model applied to the ADC creates volatility in the statement of operations that
is not representative of the underlying economic substance of the transaction.
Management is excluding the ceded prior year favorable (unfavorable) reserve
development on reserves that are subject to the ADC and the related amortization
of the deferred gain from the after-tax net operating income to improve
comparability between periods and to remove this timing difference created by
the retroactive reinsurance accounting model from its net operating income
measure.
Providing only a GAAP presentation of net income (loss) makes it more difficult
for users of the financial information to evaluate the Company’s success or
failure in its basic business and may lead to incorrect or misleading
assumptions and conclusions. The Company understands that the equity analysts
who follow the Company focus on after-tax net operating income (loss) in their
analyses for the reasons discussed above. The Company provides after-tax net
operating income (loss) to investors so that they have what management believes
to be a useful supplement to GAAP information concerning the Company’s
performance.
10
Net Operating Income Return on Equity ("ROE")
Net Operating Income ROE (also referred to as operating ROE) is calculated by
dividing after-tax net operating income (loss) by average shareholders' equity,
adjusted for average net unrealized depreciation (appreciation) of fixed
maturity, available for sale securities. A reconciliation of net income, the
most comparable GAAP measure, to net operating income is presented above. The
Company believes net operating income ROE is a useful measure for management and
investors as it allows for better comparability and removes variability when
assessing the results of operations. A reconciliation of Net Operating Income
ROE and Net Income ROE is shown below.
(… Qu… Ye…
in Se… Se…
m… 30, Se… 30, Sep…
2… (u… 20… 30, 2026 (u… 20… 30,
──────────────────────────────────────────────────────────────────────────────
B…
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f…
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of $ 15… $ 15… $ 15,… $ 15…
p…
s…
e…
A…
a… $ 15… $ 15… $ 15,… $ 15…
s…
e…
N…
i… $ 233 $ 255 $ 1,4… $ 1,…
(…
A…
a…
d… 18 — 108 —
a…
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p…
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n…
g… 51 37 65 46
(…
on
i…
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i…
(…
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i…
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d… 0.… —% 0.9% —%
a…
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p…
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d…
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11
Book value per common share outstanding excluding URA(D)
Book value per common share outstanding excluding net unrealized appreciation
(depreciation) of fixed maturity, available for sale securities ("URA(D)") is
calculated as reported shareholders' equity less URA(D), divided by common
shares outstanding. Book value per share is the most comparable GAAP measure.
The Company believes this metric is useful to management and investors as it
shows the value of shareholder returns on a per share basis after eliminating
the variability of investments held at fair value. Please see the table below
for a reconciliation of book value per common share outstanding (excluding
URA(D)) and book value per share.
Annualized Total Shareholder Return
Annualized TSR ("TSR") is calculated as year-to-date growth in book value per
common share outstanding (excluding URA(D)) plus year-to-date dividends per
share. As further discussed above, book value per common share outstanding
(excluding URA(D)) is a non-GAAP measure. Please see the table below for a
reconciliation of book value per common share outstanding (excluding URA(D)) and
book value per share.
(Dollars in millions, As of
except per share September 30, September 30,
amounts) 2026 2025
──────────────────────────────────────────────────────────────────────────────
End of period $ 14,252 $ 15,375
shareholders' equity
Net URA(D) 1,233 87
Adjusted end of period
shareholders' $ 15,485 $ 15,462
equity
Common shares 37.4 42.0
outstanding
Book value per common $ 381.04 $ 366.22
share outstanding
Less:
URA(D) of fixed
maturity, available -32.96 -2.07
for
sale securities
Book value per common
share outstanding $ 414.00 $ 368.29
(excluding URA(D))
Total Shareholder 14.2% 12.3%
Return (TSR)
(Some amounts may not
reconcile due to
rounding.)
12
Underwriting Income (Loss)
Underwriting income (loss) is calculated as net premiums earned, less (1)
incurred losses and loss adjustment expenses adjusted to exclude ceded prior
year favorable (unfavorable) reserve development on reserves subject to the ADC
and the related amortization of the deferred gain, (2) commission, brokerage,
taxes and fees, and (3) other underwriting expenses. Net income (loss) is the
most comparable GAAP measure. The Company believes underwriting income is a
useful measure for management and investors when assessing the performance of
the Company's reinsurance and insurance business segments. Core businesses
consist of the Reinsurance Treaty and Global Wholesale & Specialty segments
(excluding the Legacy segment) to reflect the businesses that are the Company's
primary strategic focus. A reconciliation of Underwriting Income (Loss) and Net
Income is shown below.
… …
… …
… … …
──────────────────────────────────────────────────────────────────────────────
…
… …
… … … … … … … … … …
… & … … … & … …
… …
$ … $ … $ … $ … $ … $ … $ $ $ $
… … … … … …
… … … … … …
… … … … … …
$ … $ … $ … $ … $ … $ … $ $ $ $
—
…
…
…
…
…
…
$ … $
13
Net reserve for losses and loss adjustment expenses before impact of the ADC
(Legacy Segment Metric)
Net reserve for losses and loss adjustment expenses (“LAE”) before impact of the
ADC is calculated as reserve for losses and LAE, less unpaid reinsurance loss
recoverable adjusted to exclude the unpaid recoverable of the ADC reinsurance
agreements. Due to the run-off nature of the Legacy business and the Company’s
focus on managing and settling existing liabilities, the company introduced net
reserves for losses and LAE before impact of the ADC as a Legacy segment
performance measure to better align with how management evaluates the business.
This measure is not meaningful for the Global Wholesale & Specialty and the
Reinsurance Treaty segments so it is not used as a measure to manage these
segments.
T he following table is a reconciliation of the Legacy reserve for losses and
LAE including and excluding the impact of ADC for the periods noted:
(Doll…
in
milli…
Group
-
Incur… Three Nine
Losses Months Months
and Ended Ended
Loss Septem… Septem…
Adjus… 30, 30,
Expen… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Incur…
losses
and
loss
adjus…
expen… $ 2,432 $ 2,837 $ 6,819 $ 8,203
-
Conso…
State…
Of
Opera…
Less:
ceded
prior
year
unfav…
(favo… — — 8 —
devel…
and
relat…
amort…
under
ADC
Incur…
losses
and
loss
adjus… $ 2,432 $ 2,837 $ 6,811 $ 8,203
expen…
-
total
repor…
segme…
Legacy
Segme…
Key
Metri…
Reser…
for
losses
and $ 7,790 $ 8,379 $ 7,790 $ 8,379
loss
adjus…
expen…
Less:
unpaid
reins…
loss -1,907 -2,073 -1,907 -2,073
recov…
before
impact
of ADC
Net
reser…
for
losses
and
loss $ 5,882 $ 6,306 $ 5,882 $ 6,306
adjus…
expen…
before
impact
of ADC
(Some
amoun…
may
not
recon…
due to
round…
14
Attritional Loss Ratio and Attritional Combined Ratio
The loss ratio is calculated as the sum of total incurred losses and loss
adjustment expenses less the ceded prior year favorable (unfavorable) reserve
development on reserves subject to the ADC and the related amortization of the
deferred gain, divided by net premiums earned. The combined ratio is calculated
as the sum of total incurred losses and loss adjustment expenses less the ceded
prior year favorable (unfavorable) reserve development on reserves subject to
the ADC and the related amortization of the deferred gain, commission and
brokerage expenses, and other underwriting expenses, divided by net premiums
earned. The attritional loss ratio and attritional combined ratio are defined as
the loss ratio and the combined ratio, respectively, adjusted to exclude
catastrophe losses, net catastrophe reinstatement premiums, and prior year
development. The Company believes the attritional ratios are useful to
management and investors because the adjusted ratios provide for better
comparability and more accurately measure the Company’s underlying underwriting
performance. Core businesses consist of the Reinsurance Treaty and Global
Wholesale & Specialty segments (excluding the Legacy segment) to reflect the
businesses that are the Company's primary strategic focus. The following tables
are a reconciliation of the loss ratio and attritional loss ratio, and the
combined ratio and attritional combined ratio for the periods noted:
… …
… … … …
& … … …
…
% … % % … % …
% … % % … % …
% … % % — % —
% … % % … % …
% … % % … % —
% … % % … % …
… …
… … … …
& … … …
…
% … % % … % …
% … % % … % …
% … % % — % —
% … % % … % …
% … % % … % —
% … % % … % …
15
Gross Written Premium on a Comparable Basis
The Company has included in this Press Release certain changes in gross written
premium on a comparable basis, reflecting constant currency basis and excluding
reinstatement premiums. Constant currency basis excludes the impact of foreign
exchange rates. The Company provides change in gross written premium on a
comparable basis to investors so that they have what management believes to be a
useful supplement to GAAP information concerning the Company’s performance. Core
businesses consist of the Reinsurance Treaty and Global Wholesale & Specialty
segments (excluding the Legacy segment) to reflect the businesses that are the
Company's primary strategic focus. The following tables are a reconciliation of
gross written premium and period-over-period changes on a GAAP basis to the non-
GAAP comparable basis for the periods noted:
(Dol…
in
mill…
Sept… Septe…
30, 30,
2026 Quar… 2025 Change
──────────────────────────────────────────────────────────────────────────────
-una…
Gross Gross %
Writ… Writ… Impa…
Prem… Prem…
Group $ 3,742 $ 4,375 -14.5 %
Adju…
for
gross -18 -3 -0.4 %
CAT
rein…
prem…
Adju…
for
fore… — 14 -0.3 %
exch…
effe…
Group
(com… $ 3,724 $ 4,386 -15.1 %
basi…
Core $ 3,663 $ 3,785 -3.2 %
Busi…
Adju…
for
gross -18 -3 -0.4 %
CAT
rein…
prem…
Adju…
for
fore… — 13 -0.3 %
exch…
effe…
Core
Busi… $ 3,645 $ 3,796 -4.0 %
(com…
basi…
Rein… $ 2,715 $ 2,867 -5.3 %
Trea…
Adju…
for
gross -18 -3 -0.5 %
CAT
rein…
prem…
Adju…
for
fore… — 12 -0.4 %
exch…
effe…
Rein…
Trea… $ 2,697 $ 2,877 -6.2 %
(com…
basi…
Glob…
Whol… $ 948 $ 918 3.3 %
&
Spec…
Adju…
for
gross — — — %
CAT
rein…
prem…
Adju…
for
fore… — 1 -0.1 %
exch…
effe…
Glob…
Whol…
& $ 948 $ 919 3.2 %
Spec…
(com…
basi…
Lega… $ 79 $ 590 -86.7 %
Adju…
for
gross — — — %
CAT
rein…
prem…
Adju…
for
fore… — 1 — %
exch…
effe…
Lega…
(com… $ 79 $ 590 -86.7 %
basi…
(Some
amou…
may
not
reco…
due
to
roun…
--Financial Details Follow--
16
EVEREST GROUP, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
(In
mill…
of
U.S. Three Nine
doll… Months Months
exce… Ended Ended
per Septem… Septe…
share 30, 30,
amou… 2026 2026
REVE… (unaud… 2025 (unau… 2025
──────────────────────────────────────────────────────────────────────────────
Prem… $ 3,156 $ 3,855 $ 10,220 $ 11,698
earn…
Net
inve… 634 540 1,725 1,563
inco…
Net
gains
(los… -68 -47 -86 -59
on
inve…
Other
inco… -9 -29 -117 -129
(exp…
Total 3,713 4,319 11,742 13,073
reve…
CLAI…
AND
EXPE…
Incu…
loss…
and 2,432 2,837 6,819 8,203
loss
adju…
expe…
Comm…
brok…
taxes 747 890 2,386 2,595
and
fees
Other
unde… 200 258 641 750
expe…
Corp… 30 27 101 79
expe…
Inte…
fees
and
bond 36 38 107 114
issue
cost
amor…
expe…
Total
clai… 3,445 4,050 10,054 11,740
and
expe…
INCO…
(LOS… 268 269 1,688 1,332
BEFO…
TAXES
Inco…
tax 36 14 243 187
expe…
(ben…
NET
INCO… $ 233 $ 255 $ 1,445 $ 1,145
(LOS…
Other
comp…
inco…
(los…
net
of
tax:
Unre…
appr…
(dep…
("UR…
of -935 129 -1,295 714
secu…
aris…
duri…
the
peri…
Recl…
adju…
for
real…
loss…
(gai… 44 37 57 48
incl…
in
net
inco…
(los…
Total
URA(…
of
secu… -891 165 -1,238 762
aris…
duri…
the
peri…
Fore…
curr…
tran… 9 1 -23 230
and
other
adju…
Recl…
adju…
for
amor…
of
net
(gai… — — -1 -8
loss
incl…
in
net
inco…
(los…
Total
bene…
plan
net
gain — — -1 -8
(los…
for
the
peri…
Total
other
comp…
inco… -882 167 -1,262 984
(los…
net
of
tax
COMP…
INCO… $ -649 $ 422 $ 183 $ 2,129
(LOS…
EARN…
PER
COMM…
SHAR…
Basic $ 6.12 $ 6.09 $ 36.85 $ 27.06
Dilu… 6.12 6.09 36.85 27.06
17
EVEREST GROUP, LTD.
CONSOLIDATED BALANCE SHEETS
(In millions of U.S.
dollars, except par
value per share)
ASSETS:
Fixed maturities - September 30,
available for sale, at 2026 December 31,
fair value (unaudited) 2025
──────────────────────────────────────────────────────────────────────────────
(amortized cost:
2026, $34,680; 2025,
$34,620, credit $ 33,058 $ 34,573
allowances:
2026, $(115); 2025,
$(68))
Fixed maturities - held
to maturity, at
amortized cost
(fair value:
2026, $549; 2025, $576,
net of credit 563 567
allowances:
2026, $(7); 2025, $(6))
Equity securities, at 161 180
fair value
Other invested assets 6,141 5,796
Short-term investments 3,055 2,994
Cash 987 1,318
Total investments and 43,965 45,429
cash
Accrued investment 408 436
income
Premiums receivable
(net of credit
allowances: 5,828 5,727
2026, $(112); 2025,
$(94))
Reinsurance loss
recoverables (net of
credit allowances: 5,196 5,110
2026, $(62); 2025,
$(57))
Funds held by 1,392 1,326
reinsureds
Deferred acquisition 1,460 1,546
costs
Prepaid reinsurance 871 653
premiums
Income tax asset, net 1,322 915
Other assets (net of
credit allowances: 1,609 1,372
2026, $(17); 2025,
$(17))
TOTAL ASSETS $ 62,052 $ 62,514
LIABILITIES:
Reserve for losses and
loss adjustment 35,288 34,312
expenses
Unearned premium 6,409 7,275
reserve
Funds held under 273 267
reinsurance treaties
Amounts due to 1,013 642
reinsurers
Losses in course of 213 151
payment
Senior notes 2,353 2,352
Long-term notes 218 218
Borrowings from FHLB 1,019 1,019
Accrued interest on 43 21
debt and borrowings
Unsettled securities 30 —
payable
Other liabilities 943 797
Total liabilities 47,800 47,054
SHAREHOLDERS' EQUITY:
Preferred shares, par
value:
$0.01; 50.0 shares — —
authorized; no shares
issued and outstanding
Common shares, par
value:
$0.01; 200.0 shares
authorized; 74.5
(2026) and 74.4 (2025)
shares issued and 1 1
outstanding
Additional paid-in 3,891 3,852
capital
Accumulated other
comprehensive income
(loss), net of deferred
income tax
expense (benefit)
of $(335) at 2026 and -1,314 -52
$(23) at 2025
Treasury shares, at
cost; 37.1 (2026) -6,104 -4,906
and 33.7 (2025)
Retained earnings 17,777 16,565
Total shareholders' 14,252 15,461
equity
TOTAL LIABILITIES AND
SHAREHOLDERS' $ 62,052 $ 62,514
EQUITY
18
EVEREST GROUP, LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions of U.S. Nine Months Ended
dollars) September 30,
CASH FLOWS FROM OPERATING 2026
ACTIVITIES: (unaudited) 2025
──────────────────────────────────────────────────────────────────────────────
Net income (loss) $ 1,445 $ 1,145
Adjustments to reconcile
net income to
net cash provided by
operating
activities:
Decrease (increase) in
premiums -158 -417
receivable
Decrease (increase) in
funds held by -62 -43
reinsureds, net
Decrease (increase) in
reinsurance -284 -266
recoverables
Decrease (increase) in -106 80
income taxes
Decrease (increase) in
prepaid -255 77
reinsurance premiums
Increase (decrease) in
reserve for 1,251 3,086
losses and loss adjustment
expenses
Increase (decrease) in -812 -48
unearned premiums
Increase (decrease) in
amounts due to 425 213
reinsurers
Increase (decrease) in
losses in course 62 -23
of payment
Change in equity
adjustments in limited -424 -242
partnerships
Distribution of limited
partnership 176 128
income
Change in other assets and
liabilities, 302 -204
net
Non-cash compensation 58 43
expense
Amortization of bond
premium (accrual of -98 -122
bond discount)
Net (gains) losses on 86 59
investments
Net cash provided by (used
in) operating 1,606 3,466
activities
CASH FLOWS FROM INVESTING
ACTIVITIES:
Proceeds from fixed
maturities
matured/called/repaid - 3,201 3,376
available for
sale
Proceeds from fixed
maturities sold - 1,485 933
available for sale
Proceeds from fixed
maturities 91 156
matured/called/repaid -
held to maturity
Proceeds from fixed
maturities sold - — 10
held to maturity
Proceeds from equity 36 55
securities sold
Distributions from other 202 266
invested assets
Cost of fixed maturities
acquired - -4,948 -8,021
available for sale
Cost of fixed maturities
acquired - held -84 -6
to maturity
Cost of equity securities -3 -2
acquired
Cost of other invested -325 -406
assets acquired
Net change in short-term -47 945
investments
Net change in unsettled
securities 22 -66
transactions
Net cash provided by (used
in) investing -369 -2,759
activities
CASH FLOWS FROM FINANCING
ACTIVITIES:
Common shares issued
(redeemed) during
the period for share-based -18 -19
compensation,
net of expense
Purchase of net treasury -1,198 -400
shares
Dividends paid to -233 -253
shareholders
Cost of shares withheld on
settlements -24 -20
of share-based compensation
awards
Net cash provided by (used
in) financing -1,474 -693
activities
EFFECT OF EXCHANGE RATE 47 -24
CHANGES ON CASH
Net change in cash
including balances -190 -10
classified as held-for-sale
Net change in cash balances
classified -141 —
as held-for-sale
Cash, beginning of period 1,318 1,549
Cash, end of period $ 987 $ 1,539
SUPPLEMENTAL CASH FLOW
INFORMATION:
Income taxes paid $ 342 $ 98
(recovered)
Interest paid 106 91
NON-CASH TRANSACTIONS:
Non-cash limited
partnership $ — $ 8
distribution
Non-cash restructure of
equity 20 —
securities and other
invested assets
Non-cash restructure of
fixed maturity
securities - available for 6 —
sale and
equity securities
19