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what it is
Everest sells insurance to insurers and businesses, then tries to make money before storms, lawsuits, and bad luck show up.
how it gets paid
Last year Everest made $17.5B in revenue. property reinsurance was the main engine at $5.25B, or 30% of sales.
why it's growing
Revenue grew 1.2% last year. On october 26th, it entered separate agreements with american international group to sell the renewal rights for certain lines of commercial property and casualty insurance.
what just happened
Latest earnings were basically flat to expectations, with EPS of $13.26 versus a $13.30 estimate.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
35/100 earnings predictability — expect surprises
7.6x trailing p/e — the market's not buying it — or you found a deal
2.5% dividend yield — cash in your pocket every quarter
15.2% return on capital — nothing to write home about
xvary composite: 67/100 — average
What they do
Everest sells insurance to insurers and businesses, then tries to make money before storms, lawsuits, and bad luck show up.
Reinsurance → insurance for insurers → so what: when other carriers want ugly risk off their books, Everest is one of the firms with enough scale to take it. Reinsurance operations produced 72% of 2024 gross written premiums, versus 28% for insurance operations, so your economics ride on a business where size, capital, and underwriting discipline matter every year.
How they make money
$17.5B
annual revenue · their business grew +1.2% last year
property reinsurance
$5.25B
casualty reinsurance
$3.68B
specialty reinsurance
$3.67B
insurance operations
$4.90B
The products that matter
takes catastrophe and specialty risk
Reinsurance
72% of premiums
this is the core engine, accounting for 72% of premiums and giving everest the scale to write risks smaller insurers do not want.
core
exits non-core insurance lines
Portfolio refocus
$300M sale · ~$2B premiums
everest agreed to sell renewal rights for certain commercial lines for about $300M, giving up roughly $2B of gross written premiums to simplify the portfolio.
capital recycle
invests premium float
Investment portfolio
+5.5% income growth
net investment income climbed 5.5% through the september period, which matters because investment income helps offset underwriting swings when claims run hot.
earnings cushion
Key numbers
7.6x
trailing p/e
P/E → price relative to earnings → so what: you are paying $7.60 for each $1 of trailing profit, which is cheap versus a market that rarely prices steady earners this low.
$55.40
FY2026 EPS
That is the fiscal 2026 profit estimate, up 24.1% from 2025 EPS of $44.65, so the stock already assumes a cleaner year.
15.2%
return on capital
Return on capital → profit generated from money put into the business → so what: Everest is still earning solid returns despite ugly earnings swings.
2.5%
dividend yield
Dividend yield → cash paid to shareholders as a percent of the stock price → so what: you get paid while waiting for the earnings rebound.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 80 / 100
- return on equity 14% — $0.14 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in EG 3 years ago → it's now worth $10,800.
The index would have given you $13,920.
source: institutional data · total return
What just happened
missed estimates
Latest earnings were basically flat to expectations, with EPS of $13.26 versus a $13.30 estimate.
Revenue hit $13.1B, up 203% vs. prior year, while annual revenue was $17.5B, up 1.2%. The bigger story is still profit volatility, with 2024 full-year EPS at $31.78 versus $44.65 in 2025.
$4.4B
revenue
$13.26
eps
n/a
n/a
the number that mattered
The number that mattered was the 0.3% EPS miss, because this stock is cheap only if investors trust the rebound math.
-
everest group is refocusing on its core insurance and specialty reinsurance product lines.on october 26th, it entered separate agreements with american international group (aig) to sell the renewal rights for certain lines of commercial property and casualty insurance for about $300 million in aggregate. the renewal rights include certain everest group policies in the u.s., u.k., europe, and asia/pacific, with an estimated $2 billion of gross written premiums.
-
the sales aim to reduce future volatility and release significant capital over time.
-
elsewhere, the company likely closed out 2025 with respectable operating results. (the reinsurance provider was set to announce full-year financials in early february.) during the first three quarters, premiums earned increased 3.9% from the same span in 2024, and probably advanced about 4% for 2025 as a whole.demand for property/casualty insurance and reinsurance products has been somewhat uneven of late, and that trend may continue in 2026.
-
net investment income climbed 5.5% through the september period, owing to good returns on everest group’s fixed-income portfolio, and may have climbed by a similar amount for full-year 2025.net operating income per share likely rebounded to $44.65 in the most recent year, from $31.78 in 2024.
-
however, performance metrics have weakened of late.
source: company earnings report, 2026
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What could go wrong
the #1 risk here is catastrophe-loss volatility in property and specialty reinsurance.
high
catastrophe losses can erase a quarter fast
q4 2024 showed the problem clearly with EPS at -$13.96. This business can look cheap right until a major event changes the numerator.
A single bad quarter can dominate the full-year narrative.
med
earnings are still less stable than the multiple suggests
EPS moved from $60.19 in 2023 to $31.78 in 2024 and back to $44.65 in 2025. Cheap stocks with unstable earnings often stay cheap.
If investors do not trust the rebound, valuation stays compressed.
med
portfolio refocus can reduce volatility and reduce volume
The AIG renewal-rights sale brings in about $300M, but it also hands off roughly $2B of gross written premiums. Cleaner business mix is good only if returns improve enough to offset the smaller footprint.
You could get a safer book without getting a faster-growing one.
low
investment income is helping more than usual
Net investment income rose 5.5% through the september period. That helps cushion results, but it can also hide softer underwriting performance for a while.
If investment income cools, the underwriting engine has to do more of the work.
Quarterly EPS ranged from $6.45 to $17.36 in 2025, and q4 2024 dropped to -$13.96. That is what catastrophe exposure looks like in the income statement.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next earnings report
the next print needs to show that the rebound to $44.65 in full-year EPS was not just one cleaner period inside a volatile cycle.
metric
whether EPS holds above the 2024 trough
$31.78 is the key line. if annual earnings slide back below that level, the "cheap rebound" story stops being a rebound story.
risk
catastrophe-loss season
this stock does not need a bad business trend to disappoint you. one ugly storm season can do the job by itself.
trend
whether refocusing improves quality faster than it shrinks volume
the $300M renewal-rights sale and the exit from about $2B of gross written premiums should make the book cleaner. you want to see that show up in steadier earnings, not just a smaller business.
Analyst rankings
short-term outlook
top 20%
outlook rank 2 — analysts expect above-average price performance in the year ahead. in human-speak: they think the stock can work even if they do not love the chart.
risk profile
average
risk rank 3 — this sits in the middle of the pack on overall risk. the stock is calmer than the earnings stream.
chart momentum
bottom 5%
momentum rank 5 — the chart has been one of the market's laggards. welcome to buying cheap cyclicals before the tape agrees with you.
earnings predictability
35 / 100
earnings predictability is low. That means analysts do not have a clean line of sight, and you should not pretend you do either.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 315 buyers vs. 327 sellers in 3q2025. total institutional holdings: 39.0M shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$286
$563
$340
current price
$425
target midpoint · +25% from current · 3-5yr high: $640 (+90% · 19% ann'l return)
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