EVEREST GROUP, LTD. (EG)

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AI: Undervalued

Price checkThe shares trade below book value and at a low price versus recent earnings.

At the August 14 close of $370.11, Everest traded at 0.93 times its $398.83 book value per share, which represents net assets attributable to each share. It was only 0.91 times the $407.67 figure excluding unrealized bond-market changes. Trailing earnings were about $47.28 per share, putting the price near 7.8 times earnings. These discounts imply weaker future returns or additional reserve problems. Given current core profitability, they provide enough margin of safety for an Undervalued verdict, although recent earnings may exceed a normal cycle.

Big pictureProfit remains strong, but disasters, reserves, and claim timing make cash and earnings uneven.

Revenue rose from $9.60 billion in 2020 to $17.50 billion in 2025, while annual operating cash flow stayed positive between $2.87 billion and $4.96 billion. Momentum has weakened: first-half 2026 revenue fell 8.3% to $8.03 billion, and operating cash flow dropped 53% to $939 million. Yet net income increased 36% to $1.21 billion because underwriting and investment results improved. Insurer cash flow reflects when premiums arrive and claims are paid, so it is less stable than ordinary business cash generation. Catastrophes and reserve revisions can abruptly reverse profits.

Business strengthA large investment pool and careful underwriting support returns, while buybacks steadily shrink dilution.

Core operations reported a 90.0% combined ratio in the second quarter; this means claims and expenses consumed 90 cents of each premium dollar, leaving an underwriting profit before investments. Everest also held $44.86 billion of investments and cash against $15.43 billion of shareholder equity. During the first half, it spent $725 million on buybacks and $158 million on dividends. Outstanding shares fell 7.6% from 41.9 million to 38.7 million year over year, outweighing $40 million of share-based pay and making the repurchases meaningfully beneficial to remaining owners.

What could change the storyStable reserves could unlock the discount; fresh losses or weak pricing could justify it.

The bull case requires core underwriting near its current 90% combined ratio, returns on equity around 14% to 15%, and book value continuing above $408 per share. The bear case is concrete: prior-year claim estimates worsened by $1.34 billion in 2024 and $535 million in 2025, including a $478 million third-quarter charge. A $1.2 billion reserve-protection agreement reduces, but does not remove, that risk. Core premiums also fell 7.1% in the latest quarter. Further reserve charges or a combined ratio above 100% would show that the below-book price is warranted.

$370.11 price considered

AI: News

Mixed second-quarter resultsProfit beat expectations, but shrinking premiums and sales raised questions about future earnings growth.

On July 29, Everest reported second-quarter net income of $559 million, or $14.22 per share. Adjusted operating earnings of $14.85 topped the $14.59 consensus, while $3.96 billion of revenue missed expectations and gross written premiums fell 19.4%. Core underwriting remained profitable with a 90.0% combined ratio. The shares declined 4.7% in the next session, from $393.89 to $375.36. The timing suggests the mixed report influenced trading, but does not prove it caused the entire move.

Third-party capital launchA new partner-funded vehicle expands underwriting capacity without requiring Everest to supply all the capital.

On June 17, Everest and Stone Point launched Annapurna Re, a casualty reinsurance sidecar expected to deploy about $600 million of outside capital over three years. A sidecar lets investors fund a defined pool of insurance risks alongside the company. The structure can improve Everest’s capital flexibility and support casualty and specialty business without issuing common shares. Its value still depends on sound pricing and reserve estimates because underwriting mistakes could damage results and investors’ willingness to renew the arrangement.

Retail portfolio narrowedThe Colombia sale advances Everest’s retreat from retail insurance and concentrates the company on stronger businesses.

On May 19, Everest agreed to sell its Colombian insurance subsidiary to AIG, with closing expected in early 2027 after regulatory approval. Financial terms were not disclosed. The transaction followed agreements covering global commercial-retail renewal rights and Canadian retail operations. The reported fact is a narrower business portfolio; the likely valuation effect is lower future premium volume but less capital tied to retail insurance, the area responsible for major reserve charges. With no disclosed price, the immediate gain or loss cannot yet be assessed.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$17.50B	$17.28B	$14.59B	$12.06B	$11.87B	$9.60B	$8.23B	$7.36B	$6.62B	$5.79B	$5.68B	$5.68B	$5.64B	$4.92B	$4.69B	$4.71B	$4.50B	$3.53B
Net income	$1.59B	$1.37B	$2.52B	$597.0M	$1.38B	$514.0M	$1.01B	$89.0M	$482.8M	$996.3M	$977.9M	$1.20B	$1.26B	$829.0M	−$80.5M	$610.8M	$807.0M	−$18.8M
Basic EPSper diluted share	$37.80	$31.78	$60.19	$15.19	$34.66	$12.81	$24.77	$2.18	$11.77	$23.85	$22.29	$26.16	$25.67	$15.85	-$1.49	$10.73	$13.26	-$0.30
Diluted EPSper diluted share	$37.80	$31.78	$60.19	$15.19	$34.62	$12.78	$24.70	$2.17	$11.70	$23.68	$22.10	$25.91	$25.44	$15.79	-$1.49	$10.70	$13.22	-$0.30

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys4$5.79M disclosed value

Sells (SEC code S)5$1.27M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 7, 2026Form 4	Keen JasonEVP & CEO of GW & S Division	SellCommon Shares	775	$351.84	$272.7K	8.2K
Oct 29, 2025Form 4	Levine AllanDirector	BuyCommon Shares	3.1K	$306.08	$948.8K	4.2K
Oct 29, 2025Form 4	GALTNEY WILLIAM F JRDirector	BuyCommon Shares · indirect	11.4K	$307.38	$3.50M	45.5K
Jun 11, 2025Form 4	WILLIAMSON JAMES ALLANPresident and CEO	BuyCommon Shares	1.0K	$337.97	$338.0K	25.6K
Mar 18, 2025Form 4	Losquadro GeraldineDirector	SellCommon Shares	1.5K	$360.63	$540.9K	12.3K

Review ownership filings at SEC.gov ↗

EVEREST GROUP, LTD. (EG)

Financial charts

Financial statements

Insider buys & sells