Everest posts Q1 results as strategic overhaul takes hold
Everest reported a robust first quarter on Wednesday, posting net operating income of $648 million and a combined ratio of 91.2%, as the Bermuda-based reinsurer pressed ahead with a strategic transformation aimed at sharpening its focus on core underwriting businesses.
The results mark a significant rebound from the same period a year ago, when net operating income stood at $276 million, dragged down in part by aviation losses stemming from the Washington, D.C. crash. Net investment income hit a company record of $567 million in the quarter, driven by strong returns from alternative investments.
Shedding Retail, Doubling Down on Reinsurance
The headline strategic move of recent months has been Everest’s sale of renewal rights for its commercial retail insurance business to AIG, covering U.S., U.K., European, and Asia Pacific operations. The company recorded an $81 million net expense in the quarter tied to that transaction and flagged approximately $150 million in restructuring charges expected across 2026 as it completes its exit.
The divestiture is part of a broader effort to concentrate resources on its Reinsurance Treaty division — which accounts for 66% of gross written premiums — and its Global Wholesale & Specialty platform. Everest re-segmented its businesses in the first quarter to reflect the new structure.
“Everest is a more focused and agile company, centered around our core underwriting strengths,” the company said in its investor presentation.
Reinsurance Treaty Softens on Casualty Retreat
Gross written premiums in the Reinsurance Treaty division fell to $2.67 billion in the quarter, down 8.5% on a constant-dollar basis excluding reinstatement premiums, as growth in property catastrophe excess-of-loss and property pro-rata lines was more than offset by continued reductions in casualty. The attritional combined ratio for the segment improved 210 basis points year-over-year to 85.0%.
The prior-year quarter had been burdened by the D.C. aviation losses, which contributed 2.5 percentage points to the first quarter 2025 attritional combined ratio.
Insurance Division Stabilizing
The Global Wholesale & Specialty division held gross written premiums flat at $793 million, a 1.6% increase on a constant-dollar basis, as gains in specialty and accident and health lines offset pullbacks in workers’ compensation, property, and casualty. The attritional loss ratio improved 380 basis points to 58.9%, and the division posted an underwriting profit of $23 million.
The segment’s attritional combined ratio of 92.6% remains above the company’s stated target of a mid-90s range, but management indicated continued improvement is expected as the portfolio mix is optimized.
Balance Sheet Fortified by Reserve Cover
Everest also highlighted the ongoing impact of its $1.2 billion adverse development cover, purchased from Longtail Re with an effective date of October 1, 2025. The cover shields $5.4 billion of North America liability reserves for accident years 2024 and prior, a move the company said reduces reserve volatility and strengthens its balance sheet heading into the restructured operating model.
Shareholders’ equity stood at $15.3 billion as of March 31, with book value per share rising to $383.75. The company repurchased $331 million of common shares during the quarter and maintained $45 billion in invested assets, with a 3.5-year fixed income duration and AA- average credit quality.
Operating cash flow for the quarter was $649 million.
Everest said it continues to target a mid-teens total shareholder return over the cycle.
