Everest's mixed Q2 outcomes highlight the resilience of reinsurance
Bermuda-based specialty re/insurer Everest Group improved its Q2 combined ratio to 85.6%, compared to 88.9% in Q2 2024, despite significant aviation losses of $98 million due to the Russia/Ukraine war.
Overall Q2 combined ratio for Everest was flat at 90.4%.
However, net income for the quarter shrank to $680 million versus Q2 2024 net income of $724 million.
Group-wide gross written premium (GWP) was also flat at $4.7 billion for the quarter, although reinsurance GWP increased by 1.6% to approximately $3.2 billion. The reinsurance segment saw strong growth in premiums, particularly in property catastrophe and pro-rata lines.
All of this was offset by a 3.3% drop in premium for Everest’s insurance arm. Growth in property and specialty lines across both segments was offset by reductions in certain casualty lines, the re/insurer said.
Everest earned $385 million in group-wide pre-tax underwriting income for the quarter, with reinsurance income well up at $436 million from $303 million in the prior year.
But the insurance segment recorded a second quarter loss of $18 million and what Everest calls “other” fared even worse, staring at a $33 million hole.
“Everest delivered a strong second quarter, with solid contributions from both underwriting income and net investment income, resulting in an annualised operating ROE of approximately 20%,” said Jim Williamson (pictured), Everest president and CEO.
“Our reinsurance business continues to deliver outstanding results, further supported by favourable reserve development this quarter. In insurance, the execution of our ‘1-Renewal Strategy’ is nearly complete, positioning our portfolio to generate improved results over time. As we move through the second half of 2025, we are squarely focused on execution, while at the same time, actively managing our capital to benefit shareholders.”
Going forward, analysts will be keeping an eye on Everest’s execution of its trumpeted insurance segment “1-renewal strategy”, as they expect it to be a key driver of future performance.
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