EVEREST GROUP, LTD.
For the period ended Mar 31, 2026. Filed May 5, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 5, 2026
EG$411.11-1.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-10-31.
0001095073-25-000086
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-05.
0001095073-26-000022
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 140 previous paragraphs and 144 current paragraphs.
41 unchanged; 49 reworded; 53 added; 49 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 20 previous and 20 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (53)
Current report
Effective January 1, 2026, we changed our reportable segments, previously reported as Reinsurance and Insurance, to Reinsurance Treaty, Global Wholesale & Specialty, and Legacy, following the sale of the renewal rights for the Commercial Retail Insurance business in certain geographic regions to AIG. This reflects our sharpened focus on our core global Reinsurance Treaty business as well as the Global Wholesale & Specialty business, and positions the Company for strong performance across market cycles. Accordingly, we revised the presentation of reportable segments to appropriately reflect how the business segments are now managed.
Current report
Sale of Canadian Commercial Retail Insurance Operations
Current report
On March 22, 2026, EUGIL, an Irish direct subsidiary of the Company, entered into a Purchase Agreement with the Buyer, pursuant to which EUGIL agreed to sell to Buyer, or a Canadian affiliate thereof, all of the outstanding shares of capital of Everest Canada, a Canadian insurance company and a wholly owned subsidiary of EUGIL, representing the Company’s Canadian Commercial Retail Insurance operations for C$410 million, subject to adjustment. The closing of the transaction pursuant to the Purchase Agreement is subject to the satisfaction of customary closing conditions, including the receipt of antitrust approval from the Commissioner of Competition and insurance regulatory approval from the Minister of Finance (Canada).
Current report
In connection with the Purchase Agreement, (i) Everest Canada will enter into a loss portfolio transfer reinsurance agreement with Everest Reinsurance Company (Canadian Branch), a Delaware reinsurance company and affiliate of EUGIL (“ERC - Canadian Branch”), pursuant to which ERC - Canadian Branch will reinsure certain liabilities of Everest Canada with respect to the insurance business written prior to the closing of the transaction, (ii) EUGIL or an affiliate thereof and Buyer or an affiliate thereof will enter into a transition services agreement for specified transition services to be provided to Buyer and its affiliates and (iii) EUGIL and its affiliates, on the one hand, and Buyer and its affiliates, on the other hand, will enter into such other ancillary agreements as contemplated in the Purchase Agreement. As a result of the loss portfolio transfer reinsurance agreement described in item (i), assets held-for-sale will be comprised of only investments and cash at the time of the transaction close.
Current report
The transaction is anticipated to close in the second half of 2026, pursuant to customary regulatory approvals and closing conditions. For more details, see the Current Report on Form 8-K filed with the SEC on March 23, 2026 and the Purchase Agreement attached hereto as Exhibit 10.4.
Current report
As of March 31, 2026, Everest Canada assets and liabilities are presented as held-for sale within Other assets and Other liabilities on the Company’s consolidated balance sheet. Refer to Note 6 of the Notes to the Consolidated Financial Statements for additional information.
Current report
The agreements reinsure potential adverse loss development for accident years 2024 and prior arising from substantially all of the Ceding Companies’ North American liabilities within the Insurance and Legacy segments (“Subject Business”) up to a gross limit of $1.2 billion. Certain liabilities are excluded from the subject business, including among others those related to the Asbestos and Environmental (“A&E”) reserves included in the Legacy segment. At the time the Company entered into the agreement, the carried reserves held for the Subject Business, pursuant to the Reinsurance Agreements, were $5.4 billion.
Current report
The adverse development cover (“ADC”) is composed of three layers. The first layer is an “in the money” layer whereby the ADC attachment point was $1,250 billion below the Company’s North American Insurance and Legacy segment liability subject reserves of $5.4 billion held as of September 30, 2025. The second layer is $700 million in excess of the $5.4 billion. The Company transferred $1,250 million of in-the-money reserves in consideration for the first two layers upon closing of the transaction. The third layer is $500 million, for which the Company paid approximately $122 million of consideration upon closing of the transaction. The Company has a co-participation of $100 million in each of the second and third layers. For more details, see Form 8-K filed with the SEC on October 27, 2025 and the adverse development reinsurance agreements attached thereto and incorporated by reference in Exhibits 10.57 and 10.58 to the Company’s Annual Report on Form 10-K. The total covered losses ceded to State National Reinsurer as of March 31, 2026 and December 31, 2025 were $1.25 billion and $1.25 billion, respectively. The aggregated unexpired limit for State National Reinsurer as of March 31, 2026 and December 31, 2025 was $598 million and $597 million, respectively. The aggregated unexpired limit for MS Transverse Reinsurer as of March 31, 2026 and December 31, 2025 was $400 million.
Current report
Under the agreements, AIG agreed to pay the Company a total of $10 million per month for nine months starting January 1, 2026 for specified transition services. For more details, see the Current Report on Form 8-K filed with the SEC on October 28, 2025 and the Master Transaction Agreements incorporated by reference in Exhibits 10.59 and 10.60 to the Company’s Annual Report on Form 10-K.
Current report
(1) Certain assets and liabilities related to the sale of our Canadian Commercial Retail Insurance Operations are classified as assets and liabilities held-for-sale beginning in first quarter 2026 within Other Assets and Other Liabilities. Refer to Recent Developments and Note 6 of the Notes to the Consolidated Financial Statements for additional information.
Current report
Premiums. Gross written premiums decreased by 18.0% to $3.6 billion for the three months ended March 31, 2026, compared to $4.4 billion for the three months ended March 31, 2025, reflecting a $551 million, or 80.3% decrease in our Legacy business and a $261 million, or 8.9%, decrease in our Reinsurance Treaty business, partially offset by a $22 million, or 2.9% increase in our Global Wholesale & Specialty business. The decrease in Legacy premiums was primarily driven by the non-renewal of retail business globally as well as remaining lines of business that have been previously discontinued.
Current report
The increase in Global Wholesale & Specialty premiums was primarily driven by specialty and professional liability businesses within North America and Accident and Health lines of business globally, partially offset by decreases in property/short tail, workers’ compensation and specialty casualty businesses. The decrease in Reinsurance Treaty premiums was primarily driven by portfolio actions to reduce casualty pro rata business, lower reinstatement premium and declining property rates in the second half of the prior year.
Current report
Net written premiums decreased by 14.7% to $3.2 billion for the three months ended March 31, 2026, compared to $3.7 billion for the three months ended March 31, 2025, which is consistent with the change in gross written premiums as well as the impact of seasonality of Mt. Logan premium cessions on the Reinsurance Treaty segment.
Current report
The following table shows the components of other income (expense) for the periods indicated:
Current report
Incurred losses and LAE decreased by 23.4% to $2.2 billion for the three months ended March 31, 2026, compared to $2.9 billion for the three months ended March 31, 2025, primarily due to a decrease of $404 million in current year catastrophe losses, a decrease of $239 million in current year attritional losses and favorable development on prior year catastrophe losses of $70 million, partially offset by an increase in unfavorable development on prior year attritional losses of $37 million.
Current report
The decrease in current year attritional losses was mainly related to the impact of improved selections within the facultative line of business in the Global Wholesale & Specialty segment, the effect of the Washington D.C. aviation accident loss recognized in first quarter 2025 in the Reinsurance Treaty segment and change in business mix for both the Global Wholesale & Specialty and Reinsurance Treaty segments. The unfavorable development on prior year attritional losses of $37 million was primarily driven by development of Russia/Ukraine losses.
Current report
The current year catastrophe losses of $130 million for the three months ended March 31, 2026 related primarily to the 2026 Middle East Conflict ($58 million), the 2026 Winterstorm Fern ($27 million), the 2026 U.S. Winter Weather Events ($20 million), and the 2026 Kristin/Nils Storms ($25 million). The $534 million of current year catastrophe losses for the three months ended March 31, 2025 related primarily to the 2025 Southern California wildfires ($512 million) and the Myanmar earthquake ($22 million). For the three months ended March 31, 2026, the favorable development on prior year catastrophe losses was mainly related to reserves released related to various well-seasoned 2023 and 2024 events, as well as 2025 Southern California wildfires reserves related to marine business.
Current report
Commission, Brokerage, Taxes and Fees. Commission, brokerage, taxes and fees increased slightly by 0.1% to $825 million for the three months ended March 31, 2026, compared to $824 million for the three months ended March 31, 2025. Commission, brokerage, taxes and fees remained relatively consistent period over period for Reinsurance Treaty business, and slightly increased in Global Wholesale & Specialty premiums driven by mix of business.
Current report
Other Underwriting Expenses. Other underwriting expenses decreased by 9.4% to $216 million for the three months ended March 31, 2026, compared to $238 million for the three months ended March 31, 2025. The decrease in other underwriting expenses was mainly due to the impact of the decrease in premiums earned as well as $30 million of transition services expense reimbursement from AIG related to the Sale of Certain Commercial Retail Insurance Renewal Rights.
Current report
On January 20, 2025, President Trump issued a memorandum announcing that the OECD framework has “no force or effect in the United States” and disavowing any commitments previously made by the United States with respect to the framework. The memorandum also directs the U.S. Secretary of the Treasury to develop and present to President Trump a list of protective measures or other options towards foreign countries that are either not in compliance with any tax treaty with the United States or have tax rules that are “extraterritorial or disproportionately affect American companies.” The possible uneven enactment of the OECD framework by various jurisdictions coupled with the United States’ response to these rules could cause uncertainties to and increases in our income taxes.
Current report
On January 5, 2026, the OECD released Administrative Guidance containing the side-by-side (SbS) package on the OECD’s global minimum tax. The SbS Administrative Guidance introduced, among other things, new safe harbors, including a SbS safe harbor for multi-national groups headquartered in certain eligible jurisdictions, now limited to the US. Qualification for this safe harbor would exempt companies from the OECD global minimum tax. We expect additional Administrative Guidance in the future providing implementation guidance on the SbS. Accordingly, the OECD’s global minimum tax could be subject to further changes that will continue to cause uncertainties related to income taxes payable by our company.
Current report
Our combined ratio decreased by 11.6 points to 91.2% for the three months ended March 31, 2026, compared to 102.7% for the three months ended March 31, 2025. The current year decrease is primarily due to lower current year catastrophe losses, favorable development on prior year catastrophe losses partially offset by unfavorable development on Russia/Ukraine losses, and a decrease in other underwriting expenses. For further details, please refer to the analysis of combined ratio components below.
Current report
The loss ratio component decreased by 13.1 points to 62.0% for the three months ended March 31, 2026, compared to 75.1% for the three months ended March 31, 2025 mainly due to a $404 million decrease in current year catastrophe losses, a $239 million decrease in current year attritional losses, and favorable development on prior catastrophe losses of $70 million noted above slightly offset by unfavorable development of $37 million primarily driven by Russia/Ukraine losses.
Current report
The commission and brokerage ratio components increased by 1.7 points to 23.1% for the three months ended March 31, 2026, compared to 21.4% for the three months ended March 31, 2025 primarily due to mix of business.
Current report
Effective January 1, 2026, the Company changed its reportable segments, previously reported as Reinsurance and Insurance, to Reinsurance Treaty, Global Wholesale & Specialty, and Legacy, following the sale of the renewal rights for its Commercial Retail Insurance business in certain geographic regions to AIG. This new segment presentation reflects the Company's sharpened focus on its core global Reinsurance Treaty business as well as its Global Wholesale & Specialty business, and positions the Company for strong performance across market cycles. Accordingly, the Company revised the presentation of its reportable segments to appropriately reflect how the business segments are now managed.
Current report
The Company now has three reportable segments, however, only two that actively sell products, Reinsurance Treaty and Global Wholesale & Specialty. Our Legacy segment primarily includes the divested and held-for-sale parts of the commercial retail insurance business and the results of our sports and leisure business that was sold in October 2024 consisting of policies written prior to the sale and certain new and renewed policies written on the Company’s paper post sale. Additionally, this segment includes run-off A&E exposures, certain discontinued insurance programs, and certain discontinued insurance and reinsurance coverage classes. The Legacy segment does not generally sell insurance or reinsurance products but is responsible for the management of existing policies and settlement of related losses. Certain commercial retail insurance policies will be renewed on the Company’s paper for a finite period in 2026. These segment presentation changes have been reflected retrospectively.
Current report
Reinsurance Treaty.
Current report
The following table presents the underwriting results and ratios for the Reinsurance Treaty segment for the periods indicated:
Current report
Premiums. Gross written premiums decreased by 8.9% to $2.7 billion for the three months ended March 31, 2026 from $2.9 billion for the three months ended March 31, 2025, primarily driven by portfolio actions on casualty pro rata business, lower reinstatement premium and declining property rates in the second half of the prior year and into the first quarter of 2026.
Current report
Net written premiums decreased by 4.9% to $2.4 billion for the three months ended March 31, 2026, compared to $2.5 billion for the three months ended March 31, 2025, which is consistent with the change in gross written premiums as well as impact of seasonality of Mt.Logan premium cessions.
Current report
Premiums earned decreased by 4.8% to $2.5 billion for the three months ended March 31, 2026, compared to $2.6 billion for the three months ended March 31, 2025. The change in premiums earned relative to net written premiums is the result of timing of earning in comparison with writing.
Current report
Incurred Losses and LAE. The following tables present the incurred losses and LAE for the Reinsurance Treaty segment for the periods indicated:
Current report
The $90 million of current year catastrophe losses for the three months ended March 31, 2026 related primarily to the 2026 Middle East Conflict ($40 million), 2026 Kristin Storms ($15 million), the 2026 Winter Storm Fern ($15 million), the 2026 U.S. Winter Weather Events ($10 million) and the 2026 Nils Storm ($10 million). The $509 million of current year catastrophe losses for the three months ended March 31, 2025 related primarily to the 2025 Southern California wildfires ($489 million) and the Myanmar earthquake ($20 million). For three months ended March 31, 2026, the favorable development on prior year catastrophe losses was mainly related to reserves released for various well seasoned 2023 and 2024 events, as well as 2025 Southern California wildfires reserves related to marine business.
Current report
Segment Expenses. Commission and brokerage expense decreased by 0.8% to $632 million for the three months ended March 31, 2026, compared to $637 million for the three months ended March 31, 2025. The decrease was mainly due to the impact of the decrease in premiums earned. Segment other underwriting expenses remained relatively consistent, increasing slightly by 1.9% to $61 million for the three months ended March 31, 2026, compared to $60 million for the three months ended March 31, 2025.
Current report
Global Wholesale & Specialty.
Current report
The following table presents the underwriting results and ratios for the Global Wholesale & Specialty segment for the periods indicated:
Current report
Premiums. Gross written premiums increased by 2.9% to $793 million for the three months ended March 31, 2026, compared to $770 million for the three months ended March 31, 2025. The increase in Global Wholesale & Specialty was primarily driven by specialty, professional liability, and accident and health business globally, partially offset by property/short-tail and casualty businesses.
Current report
Net written premiums increased by 5.6% to $692 million for the three months ended March 31, 2026, compared to $655 million for the three months ended March 31, 2025. The increase is consistent with gross written premium changes in addition to business mix which reflects an increased proportion in lines of business with higher overall net retention
Current report
Incurred Losses and LAE. The following tables present the incurred losses and LAE for the Global Wholesale & Specialty segment for the periods indicated:
Current report
Incurred losses and LAE decreased by 5.9% to $453 million for the three months ended March 31, 2026, compared to $482 million for the three months ended March 31, 2025. The decrease was mainly due to a decrease of $38 million in current year attritional losses, partially offset by an increase of $7 million in current year catastrophe losses and a decrease of $2 million in favorable development from prior year catastrophe losses.
Showing the first 40 of 53 passages. Open the source sections for the rest.
Removed paragraphs (49)
Previous report
The adverse development cover is composed of two layers in excess of the $5.4 billion of North America Insurance and Other segment liability subject reserves. The first layer is $700 million, upon which Everest will transfer $1.25 billion of in-the-money reserves in consideration upon closing of the transaction.The second layer is $500 million, upon which Everest will pay approximately $122 million of consideration upon closing of the transaction, which will be reported in the consolidated statement of operations for the fourth quarter of 2025. Everest will have a co-participation of $100 million in each layer.
Previous report
On October 26, 2025, Group entered into an agreement with American International Group, Inc. (“AIG”) to sell the renewal rights for certain lines of commercial property and casualty insurance business written by the Company in the U.S., U.K. and Asia Pacific, for an aggregate purchase price of $252 million (the “Master Transaction Agreement”). In addition, pursuant to the Master Transaction Agreement, AIG has agreed to pay Group $30 million for certain expenses. The closing of the transaction, occurred on October 26, 2025. Pursuant to the Master Transaction Agreement, if the gross written premium paid and payable to AIG with respect to aggregate renewed premiums are less than 80% of the aggregate premiums for the period beginning January 1, 2025 to and including December 31, 2025, including premiums on renewed policies between November 1, 2025 and December 31, 2025, Everest will reimburse a portion of the aggregate purchase price, not to exceed $70 million, to AIG depending on the relative percentage of such 2025 premiums.
Previous report
The purchase price under the Master Transaction Agreements is subject to adjustment such that the final purchase price will be equal to 15% of the actual premiums written for the period beginning January 1, 2025 to and including December 31, 2025, including premiums on renewed policies between November 1, 2025 and December 31, 2025. Under the Master Transaction Agreements, AIG has also agreed to pay Group a total of $10 million per month for nine months for specified transition services.
Previous report
Premiums. Gross written premiums decreased by 1.1%, remaining relatively constant at $4.4 billion for the three months ended September 30, 2025, compared to $4.4 billion for the three months ended September 30, 2024. The decrease reflects a $59 million, or 1.8%, decrease in our reinsurance business and a $28 million, or 55.9%, decrease in business within the Other segment, partially offset by a $37 million, or 3.4%, increase in our insurance business. The decrease in reinsurance premiums was primarily due to U.S. casualty pro rata and casualty excess of loss lines of business, partially offset by an increase in the property book of business and financial lines business. Gross written premiums within Other decreased by $28 million as this segment generally represents lines of business that have been discontinued. The increase in insurance premiums compared to the prior year period was primarily due to an increase in accident and health business, professional liability business and other specialty business, partially offset by portfolio actions taken on specialty casualty lines of business primarily in the U.S. portfolio.
Previous report
Gross written premiums decreased by 0.8% to $13.4 billion for the nine months ended September 30, 2025, compared to $13.6 billion for the nine months ended September 30, 2024. The decrease reflects an $111 million, or 60.6%, decrease within the Other segment and a $22 million, or 0.6%, decrease in our insurance business, partially offset by a $19 million, or 0.2%, increase in our reinsurance business. Gross written premiums within Other has decreased by $111 million as this segment generally represents lines of business that have been discontinued. The decrease in insurance premiums was primarily due to portfolio actions taken on specialty casualty lines of business, partially offset by an increase in other specialty business and property/short tail business. The increase in reinsurance premiums was primarily driven by property pro rata business and property catastrophe excess of loss business in the U.S., partially offset by actions taken on our U.S. reinsurance casualty business.
Previous report
Net written premiums decreased by 1.3% remaining relatively constant at $3.8 billion for the three months ended September 30, 2025, compared to $3.8 billion for the three months ended September 30, 2024, primarily driven by overall mix of business. Net written premiums decreased by 1.5% to $11.6 billion for the nine months ended September 30, 2025, compared to $11.8 billion for the nine months ended September 30, 2024. The larger percentage decrease in net written premiums compared to the percentage decrease in gross written premiums was mainly due to higher retention and overall mix of business.
Previous report
2025 is partially offset by a $26.7 million pension plan settlement gain recognized in the second quarter of 2025 driven by the extinguishment of the Everest Reinsurance Company (“Everest Re”) retirement pension plan obligation liability.
Previous report
Incurred losses and LAE increased by 9.8% to $2.8 billion for the three months ended September 30, 2025, compared to $2.6 billion for the three months ended September 30, 2024, primarily due to an increase of $35 million in current year attritional losses and an increase in unfavorable development on prior year attritional losses of $537 million, partially offset by a decrease of $260 million in current year catastrophe losses and favorable development on prior year catastrophe losses of $59 million.
Previous report
The increase in unfavorable development on prior year attritional losses of $537 million was primarily a result of strengthening of U.S. casualty reserves. The reserve strengthening for prior year loss development was driven by elevated loss experience in excess casualty and U.S. liability lines primarily on accident years 2022-2024.
Previous report
The current year catastrophe losses of $50 million for the three months ended September 30, 2025 related primarily to Typhoon Ragasa ($20 million), the 2025 U.S. September floods ($20 million) and the 2025 Philippines earthquake ($10 million). The $310 million of current year catastrophe losses for the three months ended September 30, 2024 related primarily to Hurricane Helene ($81 million), Hurricane Beryl ($67 million), Hurricane Debby ($60 million), the 2024 European flood Boris ($48 million) and the third quarter 2024 Calgary Alberta storms ($41 million). For the three months ended September 30, 2025, the favorable development on prior year catastrophe losses was mainly related to reserves released related to the 2022 Hurricane Ian event.
Previous report
Incurred losses and LAE increased by 15.0% to $8.2 billion for the nine months ended September 30, 2025, compared to $7.1 billion for the nine months ended September 30, 2024, primarily due to an increase of $476 million in current year attritional losses, an increase in unfavorable development on prior year attritional losses of $596 million and an increase of $58 million in current year catastrophe losses, partially offset by favorable development on prior year catastrophe losses of $59 million.
Previous report
The increase in current year attritional losses and the unfavorable development on prior year attritional losses were both primarily related to the strengthening of U.S. casualty reserves. Additionally, the unfavorable development on prior year attritional losses was impacted by $98 million of aviation losses associated with the Russia/Ukraine war, partially offset by net favorable prior year development of $39 million due to reserve releases for property business.
Previous report
The current year catastrophe losses of $604 million for the nine months ended September 30, 2025 related primarily to the 2025 Southern California wildfires ($512 million), the first quarter 2025 Myanmar earthquake ($28 million), Typhoon Ragasa ($20 million), the 2025 U.S. September floods ($20 million), the 2025 U.S. Midwest convective storms ($14 million) and the 2025 Philippines earthquake ($10 million). The $546 million of current year catastrophe losses for the nine months ended September 30, 2024 related primarily to Hurricane Helene ($81 million), Hurricane Beryl ($67 million), the 2024 Baltimore bridge collapse ($62 million), Hurricane Debby ($60 million), the 2024 European flood Boris ($48 million), the 2024 Brazil Floods ($41 million), the third quarter 2024 Calgary Alberta storms ($41 million), the 2024 Germany floods ($41 million), the 2024 Dubai floods ($40 million) and the 2024 Taiwan earthquake ($27 million). For the nine months ended September 30, 2025, the favorable development on prior year catastrophe losses was mainly related to reserves released related to the 2022 Hurricane Ian event.
Previous report
Commission, Brokerage, Taxes and Fees. Commission, brokerage, taxes and fees increased by 7.8% to $890 million for the three months ended September 30, 2025, compared to $826 million for the three months ended September 30, 2024. Commission, brokerage, taxes and fees increased by 8.2% to $2.6 billion for the nine months ended September 30, 2025, compared to $2.4 billion for the nine months ended September 30, 2024. The increases were primarily due to the impact of change in profit commission from the mortgage business loss reserves decrease within the Reinsurance segment and overall mix of business.
Previous report
Other Underwriting Expenses. Other underwriting expenses were $258 million and $236 million for the three months ended September 30, 2025 and September 30, 2024, respectively. Other underwriting expenses were $750 million and $694 million for the nine months ended September 30, 2025 and 2024, respectively. The increases in other underwriting expenses were driven by continued investment in insurance operations.
Previous report
Our combined ratio increased by 10.3 points to 103.4% for the three months ended September 30, 2025, compared to 93.1% for the three months ended September 30, 2024 and increased by 7.9 points to 98.7% for the nine months ended September 30, 2025, compared to 90.8% for the nine months ended September 30, 2024. The current year increase is primarily due to higher attritional losses. Refer to the analysis of combined ratio components below.
Previous report
The loss ratio component increased by 7.6 points to 73.6% for the three months ended September 30, 2025, compared to 66.0% for the three months ended September 30, 2024, mainly due to a $537 million increase in unfavorable development on prior year attritional losses, partially offset by a $260 million decrease in catastrophe losses. The loss ratio component increased by 6.8 points to 70.1% for the nine months ended September 30, 2025, compared to 63.3% for the nine months ended September 30, 2024, primarily due to an increase of $476 million in current year attritional losses, an increase of $58 million in current year catastrophe losses and unfavorable prior year development on attritional losses of $596 million.
Previous report
The commission and brokerage ratio components increased to 23.1% for the three months ended September 30, 2025, compared to 21.1% for the three months ended September 30, 2024, and increased to 22.2% for the nine months ended September 30, 2025, compared to 21.3% for the nine months ended September 30, 2024. The quarter over quarter increase was mainly due to changes in the mix of business and the change in profit commission from the mortgage business loss reserves decrease within the Reinsurance segment.
Previous report
During the fourth quarter of 2024, the Company revised its classification and presentation of certain run-off business, previously included within the Reinsurance and Insurance reportable segments, as part of a new segment called "Other". The Other segment includes the results of our sports and leisure business sold in October 2024, consisting of policies written prior to the sale and polices renewed and certain new business written on the Company’s paper post-sale. It also includes run-off A&E exposures, certain discontinued insurance programs primarily written prior to 2012 and certain discontinued insurance and reinsurance coverage classes. The Other segment does not generally sell insurance or reinsurance products but is responsible for the management of existing policies and settlement of related losses.
Previous report
Reinsurance.
Previous report
The following table presents the underwriting results and ratios for the Reinsurance segment for the periods indicated:
Previous report
Premiums. Gross written premiums decreased by 1.8% to $3.2 billion for the three months ended September 30, 2025, compared to $3.3 billion for the three months ended September 30, 2024, primarily driven by the effects of underwriting actions on U.S. casualty pro rata and casualty excess of loss lines of business, partially offset by an increase in the property book of business and financial lines business. Gross written premiums increased by 0.2% to $9.7 billion for the nine months ended September 30, 2025, compared to $9.6 billion for the nine months ended September 30, 2024, primarily driven by property pro rata business and property catastrophe excess of loss business in the U.S., partially offset by actions taken on our U.S. reinsurance casualty business.
Previous report
Net written premiums decreased by 3.0% to $2.9 billion for the three months ended September 30, 2025, compared to $3.0 billion for the three months ended September 30, 2024. Net written premiums decreased by 2.0% to $8.8 billion for the nine months ended September 30, 2025, compared to $8.9 billion for the nine months ended September 30, 2024. The decreases were driven by changes in cessions and overall mix of business.
Previous report
Premiums earned decreased by 2.6% to $2.9 billion for the three months ended September 30, 2025, compared to $3.0 billion for the three months ended September 30, 2024, comparable to the decrease in net written premium. Premiums earned increased by 4.8% to $8.8 billion for the nine months ended September 30, 2025, compared to $8.4 billion for the nine months ended September 30, 2024, primarily driven by increased property pro rata business written that was recorded over the prior quarters which are now being earned. The change in premiums earned relative to net written premiums is the result of timing; premiums are earned ratably over the coverage period, whereas written premiums are generally recorded at the initiation of the coverage period.
Previous report
Incurred Losses and LAE. The following tables present the incurred losses and LAE for the Reinsurance segment for the periods indicated:
Previous report
The $45 million of current year catastrophe losses for the three months ended September 30, 2025 related primarily to Typhoon Ragasa ($20 million), the 2025 U.S. September floods ($15 million) and the 2025 Philippines earthquake ($10 million). The $270 million of current year catastrophe losses for the three months ended September 30, 2024 related primarily to Hurricane Helene ($65 million), Hurricane Debby ($59 million), Hurricane Beryl ($56 million), the 2024 European flood Boris ($46 million) and the 2024 third quarter Calgary Alberta storms ($35 million). For three months ended September 30, 2025, the favorable development on prior year catastrophe losses was mainly related to reserves released related to the 2022 Hurricane Ian event.
Previous report
Incurred losses increased by 7.7% to $5.7 billion for the nine months ended September 30, 2025, compared to $5.3 billion for the nine months ended September 30, 2024. The increase was primarily due to an increase of $295 million in current year attritional losses, an increase of $82 million in current year catastrophe losses and an increase of unfavorable development on prior year attritional losses of $89 million, partially offset by favorable development on prior year catastrophe losses of $59 million.
Previous report
The increase in current year attritional losses was mainly related to the impact of the increase in premiums earned, the impact of the Washington D.C. aviation accident during the first quarter and reserve strengthening on the U.S. casualty business. The unfavorable development on prior year attritional losses was primarily related to reserve strengthening on the U.S. casualty business, as well as aviation losses associated with the Russia/Ukraine war of $98 million. In the second quarter of 2025, the United Kingdom’s High Court concluded that the confiscation of certain aircraft was covered under the war provision within certain reinsurance contracts. As a result of the court’s decision, the Company increased its net ultimate loss reserve for contracts that were exposed to the war in the Ukraine by $98 million ($84 million net of reinstatement premiums).
Previous report
The current year catastrophe losses of $569 million for the nine months ended September 30, 2025 related primarily to the 2025 Southern California wildfires ($502 million) and the first quarter 2025 Myanmar earthquake ($20 million), Typhoon Ragasa ($20 million), the 2025 U.S. September floods ($15 million), the 2025 Philippines earthquake ($10 million) and the 2025 U.S. Midwest convective storms ($14 million). The $487 million of current year catastrophe losses for the nine months ended September 30, 2024 related primarily to Hurricane Helene ($65 million), Hurricane Debby ($59 million), the 2024 Baltimore bridge collapse ($57 million), Hurricane Beryl ($56 million), the 2024 European flood Boris ($46 million), the 2024 Brazil Floods ($41 million), the 2024 Dubai floods ($40 million), the 2024 Germany floods ($39 million), the third quarter 2024 Calgary Alberta storms ($35 million) and the 2024 Taiwan earthquake ($25 million). For nine months ended September 30, 2025, the favorable development on prior year catastrophe losses was mainly related to reserves released related to the 2022 Hurricane Ian event.
Previous report
Segment Expenses. Commission and brokerage expense increased by 7.5% to $764 million for the three months ended September 30, 2025, compared to $710 million for the three months ended September 30, 2024. Commission and brokerage expense increased by 8.3% to $2.2 billion for the nine months ended September 30, 2025, compared to $2.1 billion for the nine months ended September 30, 2024. The increases were mainly due to the impact of the increase in premiums earned, mortgage-related contingent commissions and changes in the mix of business.
Previous report
Segment other underwriting expenses increased to $74 million for the three months ended September 30, 2025, compared to $73 million for the three months ended September 30, 2024. Segment other underwriting expenses increased to $221 million for the nine months ended September 30, 2025, compared to $215 million for the nine months ended September 30, 2024. Quarter to date remained relatively consistent with written premium movement, while the increase in year to date was mainly due to increased expenditures supporting premium volume of the segment.
Previous report
Insurance.
Previous report
The following table presents the underwriting results and ratios for the Insurance segment for the periods indicated:
Previous report
Premiums. Gross written premiums increased by 3.4% remaining relatively constant at $1.1 billion for the three months ended September 30, 2025, compared to $1.1 billion for the three months ended September 30, 2024. The increase in insurance premiums was primarily due to an increase in accident and health business, increases in professional liability business and other specialty business within the U.S. portfolio, and increases in property/short tail business in Latin America and Singapore, partially offset by portfolio actions taken on specialty casualty lines of business in the U.S. portfolio. Gross written premiums decreased by 0.6% remaining relatively constant at $3.7 billion for the nine months ended September 30, 2025, compared to $3.7 billion for the nine months ended September 30, 2024. The decrease in insurance premiums was primarily due to portfolio actions taken on specialty casualty lines of business in the U.S. portfolio, partially offset by an increase in other specialty business and property/short tail business driven by emerging growth in Colombia, Mexico, and contributions from Ireland and Lloyds.
Previous report
Net written premiums increased by 7.5% to $848 million for the three months ended September 30, 2025, compared to $789 million for the three months ended September 30, 2024. Net written premiums increased by 2.7% to $2.8 billion for the nine months ended September 30, 2025, compared to $2.7 billion for the nine months ended September 30, 2024. The increases were primarily due to business mix and higher retention in certain lines of business.
Previous report
Incurred Losses and LAE. The following tables present the incurred losses and LAE for the Insurance segment for the periods indicated:
Previous report
Incurred losses and LAE increased by 64.7% to $996 million for the three months ended September 30, 2025, compared to $605 million for the three months ended September 30, 2024. The increase was mainly due to an increase of $65 million in current year attritional losses and an increase of $361 million in unfavorable development on prior year attritional losses, partially offset by a decrease of $35 million in current year catastrophe losses.
Previous report
The increase in current year attritional losses and the unfavorable development on prior year attritional losses were both primarily due to reserve strengthening in U.S. casualty lines of business driven by elevated loss experience in excess casualty and U.S. liability lines primarily on accident years 2022-2024. The $5 million of current year catastrophe losses for the three months ended September 30, 2025 primarily related to the 2025 U.S. September floods. The $40 million of current year catastrophe losses for the three months ended September 30, 2024 related to Hurricane Helene ($16 million), Hurricane Beryl ($11 million), the 2024 Jasper fires ($6 million) and the third quarter 2024 Calgary Alberta storms ($6 million).
Previous report
Incurred losses and LAE increased by 30.7% to $2.3 billion for the nine months ended September 30, 2025, compared to $1.7 billion for the nine months ended September 30, 2024. The increase was mainly due to an increase of $209 million in current year attritional losses and an increase of $361 million in unfavorable development on prior year attritional losses, partially offset by a decrease in current year catastrophe losses of $34 million.
Previous report
The increase in current year attritional losses and the unfavorable development on prior year attritional losses were both primarily due to reserve strengthening in U.S. casualty lines of business driven by elevated loss experience in excess casualty and U.S. liability lines primarily on accident years 2022-2024.
Showing the first 40 of 49 passages. Open the source sections for the rest.
Reworded paragraphs (49)
Previous wording
As a global leader with a 50-year track record, we are a preferred Reinsurance partner in the markets we serve, and with our growing Insurance franchise we strive to deliver consistent value to all our stakeholders. We continue to grow and develop our Insurance business, investing in our global platform and strengthening our portfolio and its potential to deliver on our customer promise.
Current wording
As a global leader with a 50-year track record, we are a preferred Reinsurance partner in the markets we serve, and with our growing Global Wholesale & Specialty insurance franchise we strive to deliver consistent value to all our stakeholders.
Previous wording
During 2024, we formed a new “Other” segment, primarily comprised of the results of our sports and leisure business sold in October 2024, consisting of policies written prior to the sale and polices renewed and certain new business written on the Company’s paper post-sale. It also includes run-off asbestos and environmental (“A&E”) exposures, certain discontinued insurance programs primarily written prior to 2012 and certain discontinued insurance and reinsurance coverage classes. The Other segment does not generally sell insurance or reinsurance products but is responsible for the management of existing policies and settlement of related losses. These segment presentation changes have been reflected retrospectively. The Company will continue to have two reportable segments that actively sell products, Reinsurance and Insurance, consistent with how the on-going business is managed. See Note 6 of the Notes to the Consolidated Financial Statements for a summary of segment results.
Current wording
Our Legacy segment primarily includes the divested and held-for-sale parts of the commercial retail insurance business and the results of our sports and leisure business that was sold in October 2024 consisting of policies written prior to the sale and certain new and renewed policies written on the Company’s paper post sale. Additionally, this segment includes run-off asbestos and environmental (“A&E”) exposures, certain discontinued insurance programs, and certain discontinued insurance and reinsurance coverage classes. The Legacy segment does not generally sell insurance or reinsurance products but is responsible for the management of existing policies and settlement of related losses. Certain commercial retail insurance policies will be renewed on the Company’s paper for a finite period in 2026. As a result, the Company has three reportable segments, however, only two that actively sell products, Reinsurance Treaty and Global Wholesale & Specialty, consistent with how the on-going business is managed. These segment presentation changes have been reflected retrospectively. See Note 7 of the Notes to the Consolidated Financial Statements for a summary of segment results.
Previous wording
The following is a discussion of our results of operations, financial condition and liquidity and capital resources for the three and nine months ended September 30, 2025. This discussion should be read in conjunction with the consolidated financial statements and related notes, under Part I - Item 1 of this Form 10-Q, as well as the audited consolidated financial statements and notes thereto for the year ended December 31, 2024, included in the Company’s most recent Form 10-K filing.
Current wording
The following is a discussion of our results of operations, financial condition and liquidity and capital resources for the three months ended March 31, 2026. This discussion should be read in conjunction with the consolidated financial statements and related notes, under Part I - Item 1 of this Form 10-Q, as well as the audited consolidated financial statements and notes thereto for the year ended December 31, 2025, included in the Company’s most recent Form 10-K filing.
Previous wording
On October 26, 2025, Everest Re and Bermuda Re (the “Ceding Companies”) entered into adverse development cover reinsurance agreements with State National Insurance Company, Inc. and MS Transverse Insurance Company. The adverse development cover reinsurance agreements are supported on a retrocessional basis by Longtail Re, an affiliate of Stone Ridge Capital. The adverse development cover reinsurance agreements are effective October 1, 2025 and cover risks arising out of the Ceding Companies’ North American Insurance and Other Segment liabilities and relating to premium earned during 2024 and prior years (the “Subject Business”). The reinsurance agreements exclude certain liabilities, including among others those related to the Ceding Companies’ Asbestos and Environmental reserves included in the Other Segment. The aggregate of the statutory reserves held for the Subject Business, pursuant to the Reinsurance Agreements, is $5.4 billion, as of September 30, 2025.
Current wording
Effective October 1, 2025, the Company, through its subsidiaries Everest Re and Bermuda Re (the “Ceding Companies”), entered into adverse development reinsurance agreements with State National Insurance Company, Inc. and MS Transverse Insurance Company (collectively the “Reinsurers”). The Reinsurance Agreements are supported on a retrocessional basis by Longtail Re, an affiliate of Stone Ridge Capital.
Previous wording
Sale of Certain Retail Commercial Insurance Renewal Rights
Current wording
Sale of Certain Commercial Retail Insurance Renewal Rights
Previous wording
In addition, on October 26, 2025, Everest entered into an agreement with AIG to sell the renewal rights for certain lines of commercial property and casualty insurance business written by the Company in certain countries in the European Union, for an aggregate purchase price of $49 million (the “EU Master Transaction Agreement,” and together with the Master Transaction Agreement, the “Master Transaction Agreements”). Completion of the transaction will be subject to certain regulatory approvals.
Current wording
On October 26, 2025, the Company entered into an agreement with AIG to sell the renewal rights for certain lines of commercial retail insurance business written by the Company in the U.S., U.K. and Asia Pacific, for an aggregate purchase price of $252 million. AIG paid the Company $30 million for originating and structuring the transaction. In addition, on October 26, 2025, the Company entered into an agreement with AIG to sell the renewal rights for certain lines of the commercial retail insurance business written by the Company in certain countries in the E.U., for an aggregate purchase price of $49 million. The final purchase price under the Master Transaction Agreements will be adjusted to equal 15% of the gross written premiums of the subject business for the year ended December 31, 2025, inclusive of agreed-upon year-end renewals as agreed between the Company and the Buyer.
Previous wording
Premiums earned decreased by 1.6% to $3.9 billion during the three months ended September 30, 2025, compared to $3.9 billion during the three months ended September 30, 2024. Premiums earned increased by 3.9% to $11.7 billion for the nine months ended September 30, 2025, compared to $11.3 billion for the nine months ended September 30, 2024. The change in premiums earned relative to net written premiums was primarily the result of timing as the higher base premium written in 2024 is being earned through the 2025 period; premiums are earned ratably over the coverage period whereas written premiums are generally recorded at the initiation of the coverage period.
Current wording
Premiums earned decreased by 7.2% to $3.6 billion during the three months ended March 31, 2026, compared to $3.9 billion during the three months ended March 31, 2025. The change in premiums earned relative to net written premiums was primarily the result of timing as the higher base premium written in 2025 is being earned through the 2026 period; premiums are earned ratably over the coverage period whereas written premiums are generally recorded at the initiation of the coverage period.
Previous wording
Other Income (Expense). We recorded other expense of $29 million and other expense of $102 million for the three months ended September 30, 2025 and 2024, respectively. We recorded other expense of $129 million and other expense of $48 million for the nine months ended September 30, 2025 and 2024, respectively. The changes were primarily the result of fluctuations in foreign currency exchange rates, in particular, the movements in the Euro and British Pound Sterling. We recognized foreign currency exchange expense of $33 million and foreign exchange currency expense of $102 million for the three months ended September 30, 2025 and 2024, respectively. We recognized foreign currency exchange expense of $165 million and foreign currency exchange expense of $61 million for the nine months ended September 30, 2025 and 2024, respectively. The other expense incurred for the nine months ended September 30,
Current wording
Other Income (Expense). We recorded other expense of $63 million and other expense of $73 million for the three months ended March 31, 2026 and 2025, respectively. The change was primarily due to transaction expenses incurred from the sale of renewal rights to the Company’s commercial retail insurance business in certain geographic regions, partially offset by the result of fluctuations in foreign currency exchange rates, in particular, the movement in the Euro and British Pound Sterling. We recognized foreign currency exchange income of $12 million for thethree months ended March 31, 2026 and foreign currency exchange expense of$74 million for the three months ended March 31, 2025. The transaction related expenses are primarily comprised of severance and retention costs.
Previous wording
Net Investment Income. Refer to the “Consolidated Investments Results” section below.
Current wording
Net Investment Income. Refer to Consolidated Investments Results Section below.
Previous wording
Incurred Losses and Loss Adjustment Expenses (“LAE”). The following tables present our incurred losses and LAE for the periods indicated.
Current wording
Incurred Losses and Loss Adjustment Expenses (“LAE”). The following table presents our incurred losses and LAE for the periods indicated.
Previous wording
Catastrophe losses and loss expenses typically have a material effect on our incurred losses and LAE results and can vary significantly from period to period. Losses from natural catastrophes contributed 1.3 percentage points to the combined ratio for the three months ended September 30, 2025, compared with 7.9 percentage points in the corresponding period of 2024, and 5.2 percentage points to the combined ratio for the nine months ended September 30, 2025, compared with 4.9 percentage points in the corresponding period of 2024.
Current wording
Catastrophe losses and loss expenses typically have a material effect on our incurred losses and LAE results and can vary significantly from period to period. Losses from natural and man-made catastrophes contributed 1.7 percentage points to the combined ratio for the three months ended March 31, 2026, compared with 13.9 percentage points for the three months ended March 31, 2025.
Previous wording
Corporate Expenses. Corporate expenses, which are general operating expenses that are not allocated to segments, were $27 million and $25 million for the three months ended September 30, 2025 and 2024, respectively, and $79 million and $69 million for the nine months ended September 30, 2025 and 2024, respectively. The increases in Corporate expenses for the three and nine month periods ended September 30, 2025 are primarily due to a nonrecurring adjustment due to the curtailment of the employee benefit plan in 2024, as well as an increase in professional services related to the continued build out of our infrastructure.
Current wording
Corporate Expenses. Corporate expenses, which are general operating expenses that are not allocated to segments, were $38 million and $21 million for the three months ended March 31, 2026 and 2025, respectively. The increase in 2026 compared to 2025 was primarily due to professional fees associated with certain corporate initiatives.
Previous wording
Interest, Fees and Bond Issue Cost Amortization Expense. Interest, fees and other bond amortization expense remained consistent at $38 million for the three months ended September 30, 2025, compared to $38 million for the three months ended September 30, 2024. Interest, fees and other bond amortization expense increased to $114 million from $112 million for the nine months ended September 30, 2025 and 2024, respectively. The increase for the nine months ended September 30, 2025 was mainly due to higher interest costs on the Federal Home Loan Bank of New York borrowing, partially offset by a decrease in the floating interest rate related to the Company’s outstanding fixed to floating rate long-term subordinated notes, which is reset quarterly, per the note agreement. The floating rate was 6.86% as of September 30, 2025, compared to 7.76% as of September 30, 2024.
Current wording
Interest, Fees and Bond Issue Cost Amortization Expense. Interest, fees and other bond amortization expense was $36 million and $38 million for the three months ended March 31, 2026 and 2025, respectively. Interest expense was mainly impacted by the movement in the floating interest rate related to the Company’s long-term subordinated notes, which is reset quarterly per the note agreement, as well as variable interest rate costs on borrowings from FHLBNY.
Previous wording
Income Tax Expense (Benefit). Income tax expense was $14 million and $68 million for the three months ended September 30, 2025 and 2024, respectively. Income tax expense was $187 million and $275 million for the nine months ended September 30, 2025 and 2024, respectively. The period over period decrease in income tax expense is primarily a function of the geographic location of the Company’s pre-tax income and the statutory tax rates in those jurisdictions. The effective tax rate (“ETR”) is primarily affected by tax-exempt investment income, foreign tax credits and dividends. Variations in the ETR generally result from changes in the relative levels of pre-tax income, including the impact of catastrophe losses and net capital gains (losses), among jurisdictions with different tax rates.
Current wording
Income Tax Expense (Benefit). Income tax expense was $83 million and $39 million for the three months ended March 31, 2026 and 2025, respectively. Income tax expense is primarily a function of the geographic location of the Company’s pre-tax income and the statutory tax rates in those jurisdictions. The effective tax rate (“ETR”) is primarily affected by tax-exempt investment income, foreign tax credits and dividends. Variations in the ETR generally result from changes in the relative levels of pre-tax income, including the impact of catastrophe losses and net capital gains (losses), among jurisdictions with different tax rates. The first quarter 2026 income tax expense includes a one-time tax benefit of approximately $40 million resulting from a change in the U.K. tax law effective March 20, 2026, following the OECD’s January 2025 guidance on “covered taxes”.
Previous wording
On December 27, 2023, the Government of Bermuda enacted the Corporate Income Tax Act 2023 (“The 2023 Act”), which applies a 15% corporate income tax to certain Bermuda businesses in fiscal years beginning on or after January 1, 2025. The 2023 Act includes a provision referred to as “The Economic Transition Adjustment”, which is intended to provide a fair and equitable transition into the new tax regime, and results in a deferred tax benefit for the Company. However, on January 15, 2025, the Organisation for Economic Co-operation and Development issued Administrative Guidance related to “deferred tax assets arising from tax benefits provided by General Government” whereby it has restricted the utilization of those deferred tax benefits against the computation of its Pillar Two Global Minimum Taxes to approximately 20% of the originally calculated amounts and only for a grace period of two years through 2026. If the Bermuda Ministry of Finance amends The 2023 Act in response to this guidance, the exact impact of any such amendments is uncertain but there is a risk that it results in a reduction in the Company's Deferred Tax Assets.
Current wording
On December 27, 2023, the Government of Bermuda enacted the Corporate Income Tax Act 2023 (“The 2023 Act”), which applies a 15% corporate income tax to certain Bermuda businesses in fiscal years beginning on or after January 1, 2025. The 2023 Act includes a provision referred to as “The Economic Transition Adjustment”, which is intended to provide a fair and equitable transition into the new tax regime, and results in a deferred tax benefit for the Company. However, on January 15, 2025, the OECD issued Guidance related to “deferred tax assets arising from tax benefits provided by General Government” restricting the utilization of those deferred tax benefits against the computation of its Pillar Two Global Minimum Taxes to approximately 20% of the originally calculated amounts and only for a grace period of two years through 2026. If the Bermuda Ministry of Finance amends The 2023 Act in response to this guidance, the exact impact of any such amendments is uncertain but there is a risk that it results in a reduction in the Company's Deferred Tax Assets.
Previous wording
On July 4, 2025, The One Big Beautiful Bill was signed into law. The One Big Beautiful Bill did not have a material impact on our results of operations, financial condition, or cash flows upon enactment in the third quarter of 2025, and we do not expect it to have a material impact in the future; however, we will continue to evaluate the impact of The One Big Beautiful Bill.
Current wording
On July 4, 2025, the One Big Beautiful Bill was signed into law. The One Big Beautiful Bill did not have a material impact on our results of operations, financial condition, or cash flows upon enactment in 2025, and we do not expect it to have a material impact in the future; however, we will continue to evaluate the impact of the One Big Beautiful Bill.
Previous wording
Our net income was $255 million and $509 million for the three months ended September 30, 2025 and 2024, respectively. Our net income was $1.1 billion and $2.0 billion for the nine months ended September 30, 2025 and 2024, respectively. The period over period changes in net income were primarily driven by the financial component fluctuations explained above.
Current wording
Our net income was $653 million and $210 million for the three months ended March 31, 2026 and 2025, respectively. The period over period increase in net income was primarily driven by the financial component fluctuations explained above.
Previous wording
The other underwriting expense ratios increased to 6.7% for the three months ended September 30, 2025, compared to 6.0% for the three months ended September 30, 2024, and increased to 6.4% for the nine months ended September 30, 2025, compared to 6.2% for the nine months ended September 30, 2024. The increase for the three and nine months was mainly due to growth in insurance operations.
Current wording
The other underwriting expense ratios decreased by 0.1 points to 6.0% for the three months ended March 31, 2026, compared to 6.2% for the three months ended March 31, 2025.
Previous wording
Shareholders’ equity increased by $1.5 billion to $15.4 billion at September 30, 2025 from $13.9 billion at December 31, 2024, principally as a result of $1.1 billion of net income, $762 million of unrealized appreciation on available for sale fixed maturity portfolio net of tax, $230 million of net foreign currency translation adjustments and $24 million of share-based compensation transactions, partially offset by $400 million of share repurchases, $253 million of shareholder dividends and $8 million of net benefit plan obligation adjustments.
Current wording
Shareholders’ equity decreased by $170 million to $15.3 billion at March 31, 2026 from $15.5 billion at December 31, 2025, principally as a result of $374 million of unrealized depreciation on available for sale fixed maturity portfolio net of tax, $331 million of treasury share purchases, $80 million of shareholder dividends and $35 million of net foreign currency translation adjustments, partially offset by $653 million of net income.
Previous wording
Net investment income increased by 8.8% to $540 million for the three months ended September 30, 2025, compared with net investment income of $496 million for the three months ended September 30, 2024. The increase for the three months ended September 30, 2025 was primarily the result of an increase of $41 million in limited partnership income and an increase of $12 million in income from fixed maturity investments, partially offset by a decline of $11 million in income from short-term investments. Net investment income increased by 5.5% to $1.6 billion for the nine months ended September 30, 2025, compared with investment income of $1.5 billion for the nine months ended September 30, 2024. The increase for the nine months ended September 30, 2025 was primarily the result of an increase of $73 million of income from fixed maturity investments, an increase of $6 million in limited partnership income and an increase of $2 million in income from other alternative investments, partially offset by a decline of $10 million from short-term investments. The limited partnership income primarily reflects changes in reported net asset values. As such, until these asset values are monetized and the resultant income is distributed, they are subject to volatile results of future increases or decreases in the asset value.
Current wording
Net investment income increased by 15.5% to $567 million for the three months ended March 31, 2026, compared with net investment income of $491 million for the three months ended March 31, 2025. The increase for the three months ended March 31, 2026 was primarily the result of an increase of $94 million in limited partnership income, an increase of $7 million in income from fixed maturity investments and an increase of $7 million in income from other alternative investments, partially offset by a decline of $22 million in income from short-term investments and cash. The limited partnership income primarily reflects changes in their reported net asset values. As such, until these asset values are monetized and the resultant income is distributed, they are subject to volatile results of future increases or decreases in the asset value.
Previous wording
Total net gains (losses) on investments during the nine months ended September 30, 2025 primarily relate to $49 million of net losses due to the disposition of investments and an increase to the allowance for credit losses of $14 million, partially offset by $3 million of gains from fair value adjustments on equity securities.
Current wording
Net gains (losses) on investments during the three months ended March 31, 2026 primarily relate to $16 million of losses due to the disposition of investments, $7 million of losses from fair value adjustments on equity securities and a decrease to the allowance for credit losses of $13 million. The $13 million net decrease in allowance for credit losses is primarily comprised of reductions in allowance of $22 million due to disposals of securities that were earmarked with a credit allowance, partially offset by impairments of approximately $9 million.
Previous wording
Our two reportable segments, Reinsurance and Insurance, each have executive leadership who are responsible for the overall performance of their respective segments and who are directly accountable to our chief operating decision maker (“CODM”), the President and Chief Executive Officer of Everest Group, Ltd., who is ultimately responsible for reviewing the business to assess performance, make operating decisions and allocate resources. We report the results of our operations consistent with the manner in which our CODM reviews the business.
Current wording
Our three reportable segments, Reinsurance Treaty, Global Wholesale & Specialty and Legacy, each have executive leadership who are responsible for the overall performance of their respective segments and who are directly accountable to our chief operating decision maker (“CODM”), the President and Chief Executive Officer of Everest Group, Ltd., who is ultimately responsible for reviewing the business to assess performance, make operating decisions and allocate resources. We report the results of our operations consistent with the manner in which our CODM reviews the business.
Previous wording
Incurred losses decreased by 13.6% to $1.7 billion for the three months ended September 30, 2025, compared to $1.9 billion for the three months ended September 30, 2024. The decrease was primarily due to a decrease of $10 million in current year attritional losses, a decrease of $225 million in current year catastrophe losses and favorable development on prior year catastrophe losses of $59 million, partially offset by an increase of unfavorable development on prior year attritional losses of $30 million.
Current wording
Incurred losses decreased by 27.7% to $1.4 billion for the three months ended March 31, 2026, compared to $2.0 billion for the three months ended March 31, 2025. The decrease was primarily due to a decrease of $418 million in current year catastrophe losses, a decrease of $104 million in current year attritional losses and favorable development on prior year catastrophe losses of $70 million, partially offset by an increase of unfavorable development on prior year attritional losses of $37 million.
Previous wording
The decrease in current year attritional losses was mainly related to the impact of change in business mix. The unfavorable development on prior year attritional losses was primarily related to reserve strengthening of the U.S. casualty business.
Current wording
The decrease in current year attritional losses was mainly related to the impact of change in business mix and effect of the Washington D.C. aviation accident loss recognized in first quarter 2025. The unfavorable development on prior year attritional losses of $37 million was primarily driven by development of Russia/Ukraine losses.
Previous wording
Premiums earned increased by 4.6% to $939 million for the three months ended September 30, 2025, compared to $898 million for the three months ended September 30, 2024. Premiums earned increased by 3.5% to $2.8 billion for the nine months ended September 30, 2025, compared to $2.7 billion for the nine months ended September 30, 2024. The change in premiums earned relative to net written premiums is the result of timing as the higher base premium written in 2024 is being earned through the 2025 period; premiums are earned ratably over the coverage period, whereas written premiums are generally recorded at the initiation of the coverage period.
Current wording
Premiums earned decreased by 1.8% to $719 million for the three months ended March 31, 2026, compared to $732 million for the three months ended March 31, 2025. The change in premiums earned relative to net written premiums is the result of timing; premiums are earned ratably over the coverage period, whereas written premiums are generally recorded at the initiation of the coverage period.
Previous wording
Investments. Total investments were $44.3 billion at September 30, 2025, an increase of $4.3 billion compared to $40.0 billion at December 31, 2024. The rise in investments was primarily related to an increase in fixed maturities - available for sale due to an overall net purchase of $3.7 billion, partially offset by a decrease in short-term investment due to an overall net sale of $945 million during the nine months ended September 30, 2025.
Current wording
Investments. Total investments, were $43.6 billion at March 31, 2026, a decrease of $505 million compared to $44.1 billion at December 31, 2025. The decrease in investments was primarily driven by a decrease in short-term investments of $765 million, an increase in fixed maturities - available for sale due to an overall net purchase of $785 million, an increase in fixed maturities - held to maturity due to an overall net purchase of $30 million, a net increase in other invested assets of $14 million, and net unrealized loss of $453 million during the three months ended March 31, 2026.
Previous wording
The Company’s limited partnership investments are comprised of limited partnerships that invest in private equity, private credit and private real estate. Generally, the limited partnerships are reported on a month or quarter lag. We receive annual audited financial statements for all the limited partnerships, which are prepared using fair value accounting in accordance with Financial Accounting Standards Board guidance. For the quarterly reports, the Company reviews the financial reports for any unusual changes in carrying value. If the Company becomes aware of a significant decline in value during the lag reporting period, the loss will be recorded in the period in which the Company identifies the decline.
Current wording
The Company’s limited partnership investments are comprised of limited partnerships that invest in private equity, private credit and private real estate. Generally, the limited partnerships are reported on a month or quarter lag. We receive annual audited financial statements for all of the limited partnerships, which are primarily prepared using fair value accounting in accordance with Financial Accounting Standards Board guidance. For the quarterly reports, the Company reviews the financial reports for any unusual changes in carrying value. If the Company becomes aware of a significant decline in value during the lag reporting period, the loss will be recorded in the period in which the Company identifies the decline.
Previous wording
Reinsurance recoverables for both paid and unpaid losses totaled $3.9 billion and $3.1 billion at September 30, 2025 and December 31, 2024, respectively. At September 30, 2025, $405 million, or 10.4%, was receivable from Mt. Logan Re collateralized segregated accounts; $391 million, or 10.0%, was receivable from Munich Reinsurance America, Inc. and $301 million, or 7.7% was receivable from Endurance Assurance Corporation. No other retrocessionaire accounted for more than 5% of our recoverables.
Current wording
Reinsurance recoverables totaled $5.1 billion and March 31, 2026 respectively. At March 31, 2026, in connection with the ADC reinsurance agreements, $1.25 billion was recoverable from State National Insurance Company, Inc. At March 31, 2026, $394 million, or 7.7%, was receivable from Mt. Logan Re collateralized segregated accounts; $350 million, or 10.0%, was receivable from Munich Reinsurance America, Inc. and $326 million, or 7.7% was receivable from Endurance Assurance Corporation. No other retrocessionaire accounted for more than 5% of our recoverables.
Previous wording
Loss and LAE Reserves. Gross loss and LAE reserves totaled $33.7 billion and $29.9 billion at September 30, 2025 and December 31, 2024, respectively.
Current wording
Loss and LAE Reserves. Gross loss and LAE reserves totaled $34.6 billion and $34.3 billion at March 31, 2026 and December 31, 2025, respectively.
Previous wording
(1)Reserves for A&E exposures are included within Other. At September 30, 2025, A&E case and IBNR reserves totaled $156 million and $68 million, respectively.
Current wording
(1)Reserves for A&E exposures are included within Legacy. At March 31, 2026, A&E case and IBNR reserves totaled $148 million and $56 million, respectively.
Previous wording
(1)Reserves for A&E exposures are included within Other. At December 31, 2024, A&E case and IBNR reserves totaled $149 million and $111 million, respectively.
Current wording
(1)Reserves for A&E exposures are included within Legacy. At December 31, 2025, A&E case and IBNR reserves totaled $150 million and $59 million, respectively.
Previous wording
Changes in premiums earned and business mix, reserve re-estimations, catastrophe losses and changes in catastrophe loss reserves and claim settlement activity all impact loss and LAE reserves by segment and in total.
Current wording
Changes in premiums earned and business mix, reserve refinement, catastrophe losses, including losses related to the Middle East conflict, and changes in catastrophe loss reserves and claim settlement activity all impact loss and LAE reserves by segment and in total.
Previous wording
Our carried loss and LAE reserves represent management’s best estimate of our ultimate liability for unpaid claims. We continuously re-evaluate our reserves, including re-estimates of prior period reserves, taking into consideration all available information and, in particular, newly reported loss and claim experience. Changes in reserves resulting from such re-evaluations are reflected in incurred losses in the period when the re-evaluation is made. Our analytical methods and processes operate at multiple levels, including individual contracts, groupings of like contracts, classes and lines of business, internal business units, segments, accident years, legal entities, and in the aggregate. In order to set appropriate reserves, we make qualitative and quantitative analyses and judgments at these various levels. We utilize actuarial science, business expertise and management judgment in a manner intended to ensure the accuracy and consistency of our reserving practices. Management’s best estimate is developed through collaboration with actuarial, underwriting, claims, legal and finance departments and culminates with the input of reserve committees. Each segment reserve committee includes the participation of the relevant parties from actuarial, finance, claims and segment senior management and has the responsibility for recommending and approving management’s best estimate. Reserves are further reviewed by Everest’s Chief Reserving Actuary and senior management. The objective of this process is to determine a single best estimate viewed by management to be the best estimate of its ultimate loss liability. Nevertheless, our reserves are estimates and are subject to variation, which may be significant.
Current wording
Our carried loss and LAE reserves represent management’s best estimate of our ultimate liability for unpaid claims. We continuously re-evaluate our reserves, including re-estimates of prior period reserves, taking into consideration all available information and, in particular, newly reported loss and claim experience. Changes in reserves resulting from such re-evaluations are reflected in incurred losses in the period when the re-evaluation is made. Our analytical methods and processes operate at multiple levels, including individual contracts, groupings of like contracts, classes and lines of business, internal business units, segments, accident years, legal entities, and in the aggregate. In order to set appropriate reserves, we make qualitative and quantitative analyses and judgments at these various levels. We utilize actuarial science, business expertise and management judgment in a manner intended to ensure the accuracy and consistency of our reserving practices. Management’s best estimate is developed through collaboration with actuarial, underwriting, claims, legal and finance departments and culminates with the input of reserve committees. Each segment reserve committee includes the participation of the relevant parties from actuarial, finance, claims and segment senior management. Reserves are further reviewed by Everest’s Chief Reserving Actuary and senior management. The objective of such process is to determine a single best estimate viewed by management to be the best estimate of its ultimate loss liability. Nevertheless, our reserves are estimates, which are subject to variation, which may be significant.
Previous wording
Asbestos and Environmental Exposures. A&E exposures represent a separate exposure group for monitoring and evaluating reserve adequacy. The results of run-off A&E exposures are included within the Company’s Other segment. The following table summarizes the outstanding loss reserves with respect to A&E reserves on both a gross and net of retrocessions basis for the periods indicated.
Current wording
Asbestos and Environmental Exposures. A&E exposures represent a separate exposure group for monitoring and evaluating reserve adequacy. The results of run-off A&E exposures are included within the Company’s Legacy segment. The following table summarizes the outstanding loss reserves with respect to A&E reserves on both a gross and net of retrocessions basis for the periods indicated.
Previous wording
With respect to asbestos only, at September 30, 2025, we had net asbestos loss reserves of $183 million, or 88.6%, of total net A&E reserves, all of which was for assumed business. At September 30, 2025, we had gross asbestos loss reserves of $200 million, or 89.5% of total gross A&E reserves, all of which was for assumed business.
Current wording
With respect to asbestos only, at March 31, 2026, we had net asbestos loss reserves of $165 million, or 87.9%, of total net A&E reserves, all of which was for assumed business. At March 31, 2026, we had gross asbestos loss reserves of $181 million, or 88.9% of total gross A&E reserves, all of which was for assumed business.
Previous wording
Industry analysts use the “survival ratio” to compare the A&E reserves among companies with such liabilities. The survival ratio is typically calculated by dividing a company’s current net reserves by the three-year average of annual paid losses. Hence, the survival ratio equals the number of years that it would take to exhaust the current reserves if future loss payments were to continue at historical levels. Using this measurement, our net three-year asbestos survival ratio was 5.5 years at September 30, 2025 and 6.6 years at December 31, 2024. These metrics can be skewed by individual large settlements occurring in the prior three years and therefore may not be indicative of the timing of future payments.
Current wording
Industry analysts use the “survival ratio” to compare the A&E reserves among companies with such liabilities. The survival ratio is typically calculated by dividing a company’s current net reserves by the three-year average of annual paid losses. Hence, the survival ratio equals the number of years that it would take to exhaust the current reserves if future loss payments were to continue at historical levels. Using this measurement, our net three-year asbestos survival ratio was 4.6 years at March 31, 2026 and 4.7 years at December 31, 2025. These metrics can be skewed by individual large settlements occurring in the prior three years and therefore may not be indicative of the timing of future payments.
Previous wording
Capital. Shareholders’ equity at September 30, 2025 and December 31, 2024 was $15.4 billion and $13.9 billion, respectively. Management’s objective in managing capital is to ensure that the Company’s overall capital level, as well as the capital levels of its operating subsidiaries, exceed the amounts required by regulators, the amount needed to support our current financial strength ratings from rating agencies and our own economic capital models. The Company’s capital has historically exceeded these benchmark levels.
Current wording
Capital. Shareholders’ equity at March 31, 2026 and December 31, 2025 was $15.3 billion and $15.5 billion, respectively. Management’s objective in managing capital is to ensure that the Company’s overall capital level, as well as the capital levels of its operating subsidiaries, exceed the amounts required by regulators, the amount needed to support our current financial strength ratings from rating agencies and our own economic capital models. The Company’s capital has historically exceeded these benchmark levels.
Previous wording
Our two main operating companies, Everest Reinsurance (Bermuda) Ltd. (“Bermuda Re”) and Everest Reinsurance Company (“Everest Re”), are regulated by the Bermuda Monetary Authority and the State of Delaware’s Department of Insurance, respectively. Both regulatory bodies have their own capital adequacy models based on statutory capital as opposed to GAAP basis equity. Failure to meet the required statutory capital levels could result in various regulatory restrictions, including restrictions on business activity and the payment of dividends to their parent companies.
Current wording
Our two main operating companies, Everest Reinsurance (Bermuda) Ltd. (“Bermuda Re”) and Everest Reinsurance Company (“Everest Re”), are regulated by the Bermuda Monetary Authority (“BMA”) and the State of Delaware’s Department of Insurance, respectively. Both regulatory bodies have their own capital adequacy models based on statutory capital as opposed to GAAP basis equity. Bermuda Re is subject to the Bermuda Solvency Capital Requirement (“BSCR”) administered by the BMA and Everest Re is subject to the RBC developed by the U.S. National Association of Insurance Commissioners (“NAIC”). Failure to meet the required statutory capital levels could result in various regulatory restrictions, including restrictions on business activity and the payment of dividends to their parent companies.
Previous wording
The regulatory targeted capital and the actual statutory capital for Bermuda Re and Everest Re were as follows:
Current wording
The regulatory targeted capital and the actual statutory capital for Everest Re was as follows:
Previous wording
We maintain our own economic capital models to monitor and project our overall capital, as well as the capital at our operating subsidiaries. A key input to the economic models is projected income, and this input is continually compared to actual results, which may require a change in the capital strategy.
Current wording
We maintain our own economic capital models to monitor and project our overall capital. We also monitor and project the regulatory capital at our operating subsidiaries. A key input to the economic models is projected income, and this input is continually compared to actual results, which may require a change in the capital strategy.
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Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
(expense). In addition, we translate the assets, liabilities and income of non-U.S. dollar functional currency legal entities to the U.S. dollar. This translation amount is reported as a component of other comprehensive income.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Total net gains (losses) on investments during the three months ended September 30, 2025 primarily consist of $36 million of losses due to the disposition of investments and an increase to the allowance for credit losses of $12 million.