Everest Group Ltd

Everest Group declared a quarterly dividend of $2.00 per share, in line with its previous payout. The dividend is payable on September 25 to shareholders of record on September 9, with the ex-dividend date also set for September 9. Based on the current share price, the forward yield is 2.2%.

Everest Group Ltd posted second-quarter 2026 operating income of $585 million and an annualized after-tax net operating return on equity of 14.9%. The company's core businesses, comprising Reinsurance Treaty and Global Wholesale & Specialty, generated underwriting income of $317 million on a combined ratio of 90%, while gross written premium in those core businesses declined approximately 7% year over year on a comparable basis to $3.7 billion. Book value per share excluding unrealized gains and losses grew 12% year over year to roughly $408, and the company returned over $470 million to shareholders through $395 million in share repurchases and dividends. Everest strengthened casualty reserves by nearly $200 million due to elevated loss trends and adverse development in older accident years, and its third-party capital platform, Mt. Logan Capital Management, saw assets under management rise 89% to approximately $3.4 billion as of July 1.

Everest Group is expected to post an earnings beat when it reports second-quarter 2026 results on July 29, according to Zacks Investment Research. The Zacks Consensus Estimate for earnings is $14.59 per share, down 16% from a year ago, while revenue is pegged at $4.09 billion, a 9% decline. The positive Earnings ESP of plus 1.67%, driven by a Most Accurate Estimate of $14.83, combined with a Zacks Rank of 3, signals a likely beat. Premium growth is seen pressured by the exit from Commercial Retail Insurance and runoff of legacy casualty exposures, with net written premiums expected to fall 18.1% to $3.4 billion. Reinsurance segment premiums earned are estimated to drop 16.3% to $2.2 billion, though net investment income is forecast at $561.5 million, above the consensus of $533.6 million.

Everest Group reported its June 2026-quarter results with a positive Earnings ESP signal, despite earlier expectations of slightly softer earnings and revenue. The company's mixed track record against consensus EPS over the prior four quarters adds context to how this signal shaped expectations for another potential earnings surprise. The quarter's performance sits alongside Everest's recent US$600 million Annapurna Re partnership with Stone Point Insurance Solutions, which supports its casualty and specialty reinsurance portfolios. Investors are also watching growing concentration in catastrophe risk, which could amplify both upside and downside in future quarters.

Everest Group has become a major beneficiary of the higher interest rate environment, with net investment income serving as an increasingly important contributor to earnings alongside its insurance and reinsurance underwriting operations. Net investment income increased 15.5% year over year for the three months ended March 31, 2026, largely driven by strong alternative asset returns, fixed income portfolio growth, and strong limited partnership returns. The metric has delivered a five-year compound annual growth rate of 27% from 2020 to 2025. A significant portion of the investment portfolio consists of fixed income securities, with smaller portions in equity securities and other investments such as limited partnerships. The stock has gained 1.8% in the past year, outperforming its industry, and is trading at a price-to-book value multiple of 0.89, lower than the industry average of 2.78.

Everest Group and Stone Point Insurance Solutions have launched Annapurna Re, a Bermuda-domiciled casualty reinsurance sidecar. Stone Point-managed funds will serve as anchor investors in the multi-year structure, which is designed to deploy around $600 million in third-party capital across a three-year underwriting period, channeling dedicated reinsurance capacity into Everest's global casualty and specialty reinsurance portfolios. The new sidecar adds to Everest's existing third-party capital platform, which already includes the Mt. Logan platform, and pairs Everest's underwriting operations with Stone Point's investment expertise, with Stone Point Credit appointed as the vehicle's exclusive investment manager. The launch follows recent divestitures by Everest, including the agreed sale of its Colombian insurance unit to AIG and its Canadian retail insurance operation to Wawanesa Mutual Insurance Company.