Mar 31

Everest Q1 2025 Earnings Report

Everest reported lower earnings due to significant catastrophe losses despite continued execution on strategic priorities.

Key Takeaways

Everest posted a net income of $210 million for Q1 2025, down sharply from the prior year, driven by heavy catastrophe losses primarily from California wildfires. Operating income and investment performance remained resilient, reflecting disciplined risk underwriting and growth in specialty lines.

Net income was $210 million, significantly down from Q1 2024's $733 million due to high catastrophe losses.

Everest incurred $472 million in catastrophe losses, primarily from California wildfires.

Adjusted EPS stood at $6.45 while GAAP EPS was $4.90.

Book value per share rose to $332.39, with $200 million in share repurchases during the quarter.

Total Revenue
$4.26B
Previous year: $4.13B
+3.1%
EPS
$6.45
Previous year: $16.3
-60.5%
Combined Ratio
102.7%
Previous year: 88.8%
+15.7%
Attritional Combined Ratio
90.2%
Previous year: 86.5%
+4.3%
Catastrophe Losses
$472M
Previous year: $85M
+455.3%
Cash and Equivalents
$1.57B
Previous year: $1.54B
+1.5%
Total Assets
$58.1B
Previous year: $47.9B
+21.3%

Everest

Everest

Everest Revenue by Segment

Forward Guidance

Everest expects continued growth in property and specialty lines, while maintaining a disciplined approach to catastrophe underwriting.

Positive Outlook

  • Strong execution on January and April reinsurance renewals.
  • Positive momentum in property and specialty lines.
  • Continued progress on U.S. casualty remediation efforts.
  • Stable investment income performance despite market volatility.
  • Maintained strong capital position and repurchased $200M in shares.

Challenges Ahead

  • High Q1 catastrophe losses from California wildfires.
  • Insurance combined ratio rose due to D.C. aviation losses.
  • Operating cash flow decreased to $928M from $1.1B YoY.
  • Net written premiums declined by 4.2% YoY.
  • Ongoing drag from North America specialty casualty portfolio.