Everest Group (EGN) Q3 2026 Earnings Report

The call was predominantly positive, with management emphasizing 14.2% year-to-date annualized total shareholder return, $7.62 of quarterly operating EPS, record $634 million of net investment income, more than $1.4 billion of year-to-date capital returned, improved attritional loss ratios, and continued growth opportunities in specialty and international businesses. The principal challenges were approximately $600 million of casualty reserve strengthening, $302 million of catastrophe losses, declining reinsurance and casualty premium, competitive renewal conditions, higher expense ratios, and the expiration of the AIG TSA payment. Management presented these actions as deliberate efforts to strengthen reserves, improve risk quality, and prioritize underwriting returns over premium growth.

For the January 1, 2027 renewals, Everest expects market conditions to remain competitive, particularly in CAT renewals and peak zones, with “some additional rate decreases,” and said it “wouldn’t be surprised” to get more selective; Global Wholesale & Specialty is expected to deliver combined ratios “in the mid to high 90s in the near term,” while its full-year expected range is “in the mid to high 90s”; share repurchases of $300 million remain the quarterly floor, with expectations to exceed that amount when appropriate; net PMLs are expected to “decrease marginally” as the market cycle plays out, with “no material shifts” in the cat load; short-term net favorable reserve releases are uncertain, although reserves are expected to be released as lines mature; and the AIG portfolio’s average duration is “three to four years,” while the $30 million a quarter TSA payment expired at the end of the third quarter.