$EG · EVEREST GROUP, LTD.
Everest Group reported Q3 2026 net income of $233M ($6.12 EPS) on total revenues of $3.713B, down from $255M ($6.09 EPS) in Q3 2025. Net operating income was $290M ($7.62/diluted share). Results were pressured by $268M in net unfavorable prior-year reserve development and $322M in pre-tax catastrophe losses, pushing the Core businesses combined ratio to 105.8%.
- Net income of $233M ($6.12/diluted share) vs $255M ($6.09) in Q3 2025
- Net operating income of $290M ($7.62/diluted share) vs $316M ($7.54) in Q3 2025
- Core businesses combined ratio deteriorated to 105.8% from 88.9%, driven by $268M net unfavorable prior-year reserve development
- Repurchased $474M of common shares (1.27M shares) during the quarter; $1.2B YTD
- Book value per share excluding unrealized gains/losses rose to $414.00 from $379.70 at year-end 2025
Extended-hours trading shows EG at $389.64, up 0.71% from the regular close of $393.09, suggesting the market is absorbing the reserve charge and focusing on the aggressive buyback and strong investment income ($634M vs $540M prior year).
A $14.8B reinsurer simultaneously strengthening casualty reserves by $268M while deploying $474M on buybacks signals management conviction in book value despite underwriting headwinds.
Everest's reserve strengthening mirrors broader P&C industry trends as casualty lines face social inflation and adverse development. The aggressive $474M quarterly buyback signals confidence in book value despite underwriting headwinds.
$268M net unfavorable prior-year reserve development added 8.5 points to the Group combined ratio; catastrophe losses surged to $322M pre-tax vs $50M in Q3 2025. Core businesses combined ratio hit 105.8%, indicating underwriting losses.