Everest Group, Ltd. (EG)

The stock has been a poor performer over the past year, losing 13.93%. In Q4 2024, Everest Group reported a wider-than-expected quarterly loss, driven by a significant charge to strengthen prior year U.S. casualty reserves, although revenues surpassed estimates and the stock added about 4% in the month after. In Q1 2025, the company reported earnings that missed analysts' estimates, with operating income down and the combined ratio impacted by catastrophic events. Analyst ratings saw changes, including downgrades from Morgan Stanley and upgrades from Jefferies Financial Group, with Janney Montgomery Scott initiating coverage with a Buy recommendation. The company announced a quarterly dividend of $2.00 and executive changes effective July 14, 2025, and appointed Allan Levine as an Independent, Non-Executive Member of its Board of Directors in June 2025. Management is actively repositioning the business by shifting away from underperforming casualty lines and increasing conservatism in reserves.

Everest Group Ltd.'s earnings exhibit seasonality due to its exposure to hurricane risk. Catastrophe losses are largely concentrated in the third and potentially fourth quarters of the year. Consequently, the company typically generates more earnings in the first half of the year compared to the second half.

Everest Group Ltd. is a Bermuda-based company offering reinsurance and insurance solutions globally, operating through Reinsurance and Insurance segments. The Reinsurance segment writes worldwide property and casualty reinsurance, including treaty and facultative products, covering specialty lines such as mortgage, catastrophe, and agriculture. The Insurance segment provides commercial property and casualty insurance products distributed through wholesale and retail brokers, surplus lines brokers, and program administrators.

Everest Group Ltd. has a broad international presence, conducting its reinsurance and insurance operations across the United States, Europe, and other international markets. Its geographic reach includes the U.S., Bermuda, Canada, Singapore, the U.K., Ireland, Switzerland, Australia, the Netherlands, France, Germany, Italy, and South America (including Colombia). The company's operations span more than 100 countries across six continents.

Everest Group Ltd. has historically enjoyed a stellar reputation, refreshing its brand in 2023 to emphasize underwriting opportunity and ESG principles. However, recent financial performance has introduced concerns, with a GuruFocus assessment signaling poor future outperformance potential due to diminished rankings in financial strength, growth, and valuation. The company's stock has underperformed due to past underwriting issues, reserve charges, and catastrophe losses, along with management upheaval, which can indirectly affect public perception.

Everest Group Ltd. has a diverse ownership structure, with institutional investors holding approximately 51.82% of the company's stock, insiders holding 1.33%, and public companies and individual investors holding 29.25%. Major institutional shareholders include Vanguard Group Inc. and BlackRock, Inc. Everest Reinsurance Holdings Inc. is the largest individual shareholder, owning 9.72 million shares, representing 22.85% of the company.