Everest Reports Third Quarter 2025 Results

Annualized Total Shareholder Return of 12.3%

Sharpened focus on core business with renewal rights sale of retail commercial insurance business

Reduced future volatility with $1.2 billion ADC, attaching over strengthened reserve balance

Everest Group, Ltd. (NYSE:EG), a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions, today reported its third quarter 2025 results.

Third Quarter 2025 Highlights

• Net income of $255 million, equal to $6.09 per diluted share versus third quarter 2024 net income of $509 million, equal to $11.80 per diluted share
• Net operating income of $316 million, equal to $7.54 per diluted share versus third quarter 2024 net operating income of $630 million, equal to $14.62 per diluted share
• Total Shareholder Return of 12.3% annualized¹; Annualized 6.6% Net Income ROE and 8.2% Net Operating Income ROE
• $4.4 billion in gross written premium, a year-over-year decrease of 1.2% for the Group, a decrease of 1.7% for Reinsurance, and an increase of 2.7% for Insurance on a comparable basis; Growth in property and specialty lines across both segments was offset by reductions in certain casualty lines
• Combined ratios of 103.4% for the Group, 87.0% for Reinsurance and 138.1% for Insurance, which includes strengthening of U.S. casualty reserves
• Group attritional combined ratio of 88.8% when excluding the impact of 0.8 points from profit commissions associated with favorable loss development on mortgage business
• Net unfavorable reserve development of approximately $478 million in prior year loss reserves, resulting in a 12.4-point increase on the combined ratio for the Group.
• Pre-tax underwriting income (loss) of ($130) million for the Group, $376 million for Reinsurance, ($357) million for Insurance, and ($149) million for Other
• $50 million of pre-tax catastrophe losses net of recoveries and reinstatement premiums for the Group versus $279 million in Q3 2024
• Net investment income increased to $540 million versus $496 million in the prior year quarter, driven by a larger asset base and strong alternative investment returns.
• Operating cashflow for the quarter of $1.5 billion versus $1.7 billion in Q3 2024

"Everest has taken decisive steps to define its strategic direction and position the company for improved performance. The renewal rights transaction of our retail commercial insurance business and establishment of an adverse development cover are the outcomes of a careful strategic review of the company" said Jim Williamson, Everest President and CEO. "These actions will provide meaningful flexibility to deploy capital toward share repurchases, strategic opportunities, and selective investments in talent, technology, and data that will enhance our competitive edge. The go-forward Everest is a more focused, higher-return enterprise anchored in Reinsurance and Wholesale & Specialty Insurance, built on underwriting excellence, balance sheet strength, and disciplined execution."

Adverse Development Cover

• Everest entered into an adverse development cover providing $1.2 billion of gross limit, across two layers, supported by Longtail Re.
• 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.
• Everest will have a co-participation of $100 million in each layer.
• The ADC covers $5.4 billion of North America Insurance and Other segment liability reserves for accident years 2024 & prior.
• The effective date of the transaction is October 1, 2025.

Agreement to Sell Retail Commercial Insurance Renewal Rights to AIG

• AIG will purchase all the rights to renew Everest's U.S., U.K., European, and Asia Pacific Commercial Retail Insurance businesses. These businesses collectively total an estimated $2 billion of gross premiums written. We expect the transition process to begin in the fourth quarter of 2025, subject to regulatory approvals applicable for certain regions.
• The transaction will result in meaningful total value to Everest, including the release of significant capital over time.
• Everest expects to take a pre-tax non-operating charge in the range of $250 million to $350 million associated with the transaction, with the charge being recognized over 2025 and 2026.

The following table summarizes the Company's Net Income and related financial metrics.

The following information summarizes the Company's underwriting results, on a consolidated basis and by segment – Reinsurance and Insurance, with selected commentary on results by segment.

Reinsurance Segment – Quarterly Highlights

• Gross written premiums decreased 1.7% on a comparable basis (constant dollar basis and excluding reinstatement premiums)², to approximately $3.2 billion.
• Growth was primarily led by a 10.2% increase in Property Catastrophe XOL and a 24.3% increase in Property Non-Catastrophe XOL, partially offset by a 16.3% decrease in Casualty Pro-Rata and a 10.2% decrease in Casualty XOL, when adjusting for reinstatement premiums.
• Attritional loss ratio increased 60 basis points over last year to 57.5%, while the attritional combined ratio increased 180 basis points to 85.3% versus a year ago, when excluding the impact of 1.1 points from profit commissions associated with favorable loss reserve development on mortgage business for the quarter ended September 30, 2025⁴
• Net favorable prior year development of $29 million, driven by well-seasoned attritional property and mortgage reserves
• Pre-tax catastrophe losses were $45 million net of estimated recoveries and reinstatement premiums, driven primarily by a number of mid-sized events globally. Pre-tax catastrophe losses were $239 million net of estimated recoveries and reinstatement premiums in the prior-year quarter.
• Risk-adjusted returns remain attractive, particularly in property and specialty lines.

Insurance Segment – Quarterly Highlights

• Gross written premiums increased 2.7% on a comparable basis (constant dollar basis and excluding reinstatement premiums)², to approximately $1.1 billion as we continued to strategically shape the portfolio. We executed on our strategy to improve the business mix and portfolio quality of our North American business, while our International business continued its strong growth trajectory.
• Everest Insurance grew by 46.4% in Accident and Health and 15.8% in Other Specialty. Growth was partially offset by decreases of 15.8% in Specialty Casualty, primarily reflecting the execution of our 1-Renewal Strategy focused on U.S. casualty lines, and 13.6% in Workers' Compensation.
• Strengthened prior year U.S. casualty reserves by $361 million in the quarter, primarily focused on accident years 2022 to 2024. The reserve strengthening was driven by elevated loss experience in excess casualty and U.S. liability lines.
• Pre-tax catastrophe losses were $5 million, net of estimated recoveries and reinstatement premiums, a decrease versus the prior year quarter.

Other Segment

• Gross written premiums reflect a limited number of renewed and new policies written on the Company's paper by the purchaser of the sports and leisure business, for a finite period post-closing.
• Unfavorable development in our Other segment amounted to $146 million for the quarter, driven by U.S. casualty lines, primarily from our sports and leisure business.

Investments and Shareholders' Equity as of September 30, 2025

• Total invested assets and cash of $45.8 billion versus $41.5 billion on December 31, 2024
• Shareholders' equity of $15.4 billion vs. $13.9 billion on December 31, 2024, including $87 million of unrealized net losses on fixed maturity, available for sale securities
• Shareholders' equity excluding unrealized gains (losses) on fixed maturity, available for sale securities of $15.5 billion versus $14.7 billion on December 31, 2024
• Book value per share of $366.22 versus $322.97 at December 31, 2024
• Book value per share excluding unrealized gains (losses) on fixed maturity, available for sale securities of $368.29 versus $342.74 at December 31, 2024
• There were not any common share repurchases during the quarter.
• Common share dividends declared and paid in the quarter of $2.00 per common share equal to $83.7 million

This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. Forward-looking statements reflect management's current expectations based on assumptions we believe are reasonable but are not guarantees of performance. Actual results may differ materially from those contained in forward-looking statements made on behalf of the Company. Forward-looking statements involve risks and uncertainties that include, but are not limited to, the impact of general economic conditions and conditions affecting the insurance and reinsurance industry, the adequacy of our reserves, our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, our ability to execute divestitures, obtain regulatory approvals and effectuate strategic transactions, including the sale of our retail commercial insurance business, investment market and investment income fluctuations, trends in insured and paid losses, catastrophes, pandemics, regulatory and legal uncertainties and other factors described in our SEC filings, including but not limited to our latest Annual Report on Form 10-K. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Everest

Everest Group, Ltd. (Everest) is a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions that address customers' most pressing challenges. Known for a 50-year track record of disciplined underwriting, capital and risk management, Everest, through its global operating affiliates, is committed to underwriting opportunity for colleagues, customers, shareholders, and communities worldwide.

Everest common stock (NYSE:EG) is a component of the S&P 500 index.

Additional information about Everest, our people, and our products can be found on our website at www.everestglobal.com.

A conference call discussing the results will be held at 8:00 a.m. Eastern Time on Tuesday October 28, 2025. The call will be available on the Internet through the Company's website at https://investors.everestglobal.com/overview.

Recipients are encouraged to visit the Company's website to view supplemental financial information on the Company's results. The supplemental information is located at www.everestglobal.com in the "Investors/Financials/Quarterly Results" section of the website. The supplemental financial information may also be obtained by contacting the Company directly.

Comments on Non-GAAP Financial Measures

In this Press Release, the Company has included certain non-GAAP financial measures, including after-tax net operating income (loss), after-tax net operating income (loss) per diluted share, attritional combined ratio, gross written premiums presented on a comparable basis, net operating income return on equity ("ROE"), underwriting income, and book value per common share outstanding excluding net unrealized appreciation (depreciation) on fixed maturity, available for sale securities ("URA(D)"). The Company presents these non-GAAP financial measures to facilitate a deeper understanding of the profitability drivers of our business, results of operations, financial condition and liquidity. The Company believes that such measures are important to investors and other interested persons, and that these measures are a useful supplement to GAAP information concerning the Company's performance. These measures may not, however, be comparable to similarly titled measures used by companies within or outside of the insurance industry. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, or superior to, the Company's financial measures prepared in accordance with generally accepted accounting principles ("GAAP").

A reconciliation of the non-GAAP financial measures to the most comparable corresponding GAAP financial measures is included below.

After-tax net operating income (loss) and after-tax net operating income (loss) per diluted share

After-tax net operating income (loss) (also referred to in this release as net operating income) consists of net income (loss) excluding after-tax net gains (losses) on investments and after-tax net foreign exchange income (expense), as shown below:

Although net gains (losses) on investments and net foreign exchange income (expense) are an integral part of the Company's insurance operations, the determination of net gains (losses) on investments and foreign exchange income (expense) is independent of the insurance underwriting process. The Company believes that the level of net gains (losses) on investments and net foreign exchange income (expense) for any particular period are not indicative of the performance of the underlying business in that particular period. Providing only a GAAP presentation of net income (loss) makes it more difficult for users of the financial information to evaluate the Company's success or failure in its basic business and may lead to incorrect or misleading assumptions and conclusions. The Company understands that the equity analysts who follow the Company focus on after-tax net operating income (loss) in their analyses for the reasons discussed above. The Company provides after-tax net operating income (loss) to investors so that they have what management believes to be a useful supplement to GAAP information concerning the Company's performance.

Attritional Loss Ratio and Attritional Combined Ratio

The loss ratio is calculated as the sum of total incurred losses and loss adjustment expenses, divided by net premiums earned. The combined ratio is calculated as the sum of total incurred losses and loss adjustment expenses, commission and brokerage expenses, and other underwriting expenses, divided by net premiums earned. The attritional loss ratio and attritional combined ratio are defined as the loss ratio and the combined ratio, respectively, adjusted to exclude catastrophe losses, net catastrophe reinstatement premiums, prior year development, COVID-19 losses and losses from the Russia/Ukraine war. The Company believes the attritional ratios are useful to management and investors because the adjusted ratios provide for better comparability and more accurately measure the Company's underlying underwriting performance. The following tables are a reconciliation of the loss ratio and attritional loss ratio, and the combined ratio and attritional combined ratio for the periods noted:

Gross Written Premium on a Comparable Basis

The Company has included in this Press Release certain changes in gross written premium on a comparable basis, reflecting constant currency basis and excluding reinstatement premiums. Constant currency basis excludes the impact of foreign exchange rates. The Company provides change in gross written premium on a comparable basis to investors so that they have what management believes to be a useful supplement to GAAP information concerning the Company's performance. The following tables are a reconciliation of gross written premium and period-over-period changes on a GAAP basis to the non-GAAP comparable basis for the periods noted:

Net Operating Income Return On Equity ("ROE")

Net Operating Income ROE (also referred to as operating ROE) is calculated by dividing after-tax net operating income (loss) by average shareholders' equity, adjusted for average net unrealized depreciation (appreciation) of fixed maturity, available for sale securities. A reconciliation of net income, the most comparable GAAP measure, to net operating income is presented above. The Company believes net operating income ROE is a useful measure for management and investors as it allows for better comparability and removes variability when assessing the results of operations. A reconciliation of Net Operating Income ROE and Net Income ROE is shown below.

Underwriting Income

Underwriting income is calculated as net premiums earned, less (1) incurred losses and loss adjustment expenses, (2) commission, brokerage, taxes and fees, and (3) other underwriting expenses. Net income (loss) is the most comparable GAAP measure. The Company believes underwriting income is a useful measure for management and investors when assessing the performance of the Company's reinsurance and insurance business segments. A reconciliation of Underwriting Income and Net Income is shown below.

Book value per common share outstanding excluding URA(D)

Book value per common share outstanding excluding net unrealized appreciation (depreciation) of fixed maturity, available for sale securities ("URA(D)") is calculated as reported shareholders' equity less URA(D), divided by common shares outstanding. Book value per share is the most comparable GAAP measure. The Company believes this metric is useful to management and investors as it shows the value of shareholder returns on a per share basis after eliminating the variability of investments held at fair value. Please see the table on page 3 for a reconciliation of book value per common share outstanding (excluding URA(D)) and book value per share.

Annualized Total Shareholder Return

Annualized TSR ("TSR") is calculated as year-to-date growth in book value per common share outstanding (excluding URA(D)) plus year-to-date dividends per share. As further discussed above, book value per common share outstanding (excluding URA(D)) is a non-GAAP measure. Please see the table on page 3 for a reconciliation of book value per common share outstanding (excluding URA(D)) and book value per share.

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