Everest Group, Ltd. (EG)

Everest Group Ltd.'s stock price has declined by 5.53% in the past six months and 10.5% over the past year. Key events include a net loss in Q4 2024 due to reserve strengthening in U.S. casualty lines and a decrease in net income in Q1 2025 due to higher losses and catastrophe events. Management is repositioning the business by shifting away from underperforming casualty lines.

The reinsurance and insurance businesses are cyclical, influenced by underwriting results, prices, and capacity. Catastrophic losses, which can be seasonal, directly impact the business, leading to increased claims and reserve adjustments. The reinsurance market is expected to remain hard into 2025.

Everest Group Ltd. is a global underwriting leader specializing in reinsurance and insurance services, operating primarily in the Finance sector. Its core business is divided into Reinsurance, which provides financial backing to other insurance companies, and Insurance, which underwrites policies directly for businesses and individuals.

Everest Group has a broad global presence, with Reinsurance operations in the U.S., Bermuda, Ireland, Canada, Singapore, the U.K., and Switzerland. Insurance operations extend across the U.S., Bermuda, Canada, Europe, Singapore, and South America, with branches in Australia, the U.K., the Netherlands, France, Germany, Italy, and Spain.

Everest Group is generally recognized as a global underwriting leader, but its reputation has been impacted by a significant charge to strengthen U.S. casualty reserves and Q1 2025 earnings miss due to higher losses and catastrophe events. These issues have raised concerns about risk management and profitability.

Everest Group Ltd. has significant institutional ownership, with 91.34% held by institutional shareholders, including Vanguard Group Inc. and BlackRock, Inc. Everest Reinsurance Holdings Inc is the largest individual shareholder, owning 22.85% of the company. Insider trading activity shows more sales than purchases recently.