Cat losses and reserve strengthening weigh on Everest’s Q3 results

Everest Group reported a decline in third-quarter net income as higher catastrophe losses and further casualty reserve strengthening weighed on underwriting performance, while gross written premiums fell amid the continued restructuring of its business.

Net income dipped to $233 million in the third quarter of 2026, down from $255 in the same period year prior, despite an increase in investment income.

Gross written premiums also fell by 14.5%, down to $3.7 billion from $4.4 billion quarter-on-quarter, largely reflecting a reduction in premiums from the group’s Legacy segment.

Within its core businesses, gross written premiums declined by 3.2% to $3.66 billion, with the reinsurance treaty segment recording a 5.3% decrease to $2.7 billion.

On a comparable basis, reinsurance treaty premiums fell 6.2%, driven primarily by reductions of 24.8% in casualty excess-of-loss business and 15.8% in casualty pro-rata business. Property premiums declined by 1.8%.

Meanwhile, gross written premiums in the global wholesale and specialty segment increased 3.3% to $948 million, supported by growth in financial lines, specialty and casualty business.

A 3.7-percentage-point increase took the combined ratio to 107.1% in the third quarter of 2026, up from 103.4% in the same period the year prior.

The deterioration reflected higher catastrophe losses, which reached $322 million before tax, compared with $50 million in the prior-year quarter. These were driven primarily by the Colombia earthquake, events in the Middle East and weather-related losses globally.

Jim Williamson, Everest President and CEO, said: “This quarter Everest generated an annualised 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.

“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 and 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.”

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