Everest Group, Ltd. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income of $233 million ($6.12 per diluted share) for the third quarter of 2026, compared to $255 million ($6.09 per diluted share) in the same period of 2025.
• Net operating income was $290 million ($7.62 per diluted share), down from $316 million ($7.54 per diluted share) in the prior year quarter.
• Year-to-date net income reached $1,445 million ($36.85 per diluted share) versus $1,145 million ($27.06 per diluted share) in 2025.
• Year-to-date net operating income was $1,620 million ($41.30 per diluted share) compared to $1,326 million ($31.33 per diluted share) in 2025.
• Annualized net income return on average equity was 6.0% for the quarter and 12.5% year-to-date.
• Annualized after-tax net operating income return on average equity was 7.4% for the quarter and 14.0% year-to-date.
• Book value per common share was $381.04 at September 30, 2026, compared to $379.83 at December 31, 2025.
• Book value per share excluding unrealized gains/losses on fixed maturity securities was $414.00 at September 30, 2026, versus $379.70 at December 31, 2025.
• Total shareholders' equity was $14,252 million at September 30, 2026, down from $15,375 million at September 30, 2025.
• Net investment income was $634 million for the quarter, up from $540 million in the prior year quarter, driven by higher alternative investment returns.
• Total investments and cash stood at $43,965 million at September 30, 2026.

Guidance and Future Outlook:

• Management stated a focus on executing strategies across Core businesses and proactively deploying capital as the year concludes and heading into 2027.
• Share repurchases remain a top priority for capital deployment.
• The Global Wholesale & Specialty business is noted to be generating momentum with strong profitable growth in specialty lines and targeted international markets.

Business Segments and Product Lines:

• Core Businesses (Reinsurance Treaty and Global Wholesale & Specialty):
  • Gross written premiums were $3.7 billion, a 4.0% year-over-year decrease, including a 6.2% decrease for Reinsurance Treaty and a 3.2% increase for Global Wholesale & Specialty on a comparable basis.
  • Combined ratio for Core businesses was 105.8%, with an attritional combined ratio of 87.0%.
  • Reinsurance Treaty Segment: Gross written premiums decreased 6.2% on a comparable basis to approximately $2.7 billion. Reductions were led by 24.8% decreases in Casualty XOL and 15.8% in Casualty Pro-Rata. The segment reported a combined ratio of 108.5% and an attritional combined ratio of 84.9%. Net adverse prior year reserve development was $253 million.
  • Global Wholesale & Specialty Segment: Gross written premiums increased 3.2% on a comparable basis to approximately $948 million. Growth was driven by 27.5% increases in Financial Lines, 21.5% in Specialty, and 19.7% in Casualty. The segment reported a combined ratio of 97.3% and an attritional combined ratio of 93.7%.
• Legacy Segment:
  • Now encompasses the commercial retail insurance business following the announcement of the renewal rights transaction.
  • Net premiums earned were largely driven by the commercial retail insurance business, which remains on track with expectations.
  • Reported net adverse prior year reserve development of $14 million not subject to the ADC.
  • Underwriting loss was $51 million for the quarter.

Market and Competitive Landscape:

• The Reinsurance Treaty team is navigating the market cycle with a high level of discipline.
• The company maintains a focus on bottom-line results and leveraging competitive advantages.
• Pre-tax net catastrophe losses for the quarter were $322 million (Group), driven by the Colombia Earthquake, events in the Middle East, and global weather-related losses.

Risks and Challenges:

• Net unfavorable reserve development of approximately $268 million in prior year loss reserves resulted in an 8.5-point increase to the Group combined ratio.
• Pre-tax underwriting loss for the Group was $(223) million, including a $(191) million loss for Reinsurance Treaty and a $(51) million loss for Legacy.
• The company faces risks related to general economic conditions, adequacy of reserves, ability to assess underwriting risk, and trends in insurance rates.
• Forward-looking statements note risks including pandemics, regulatory developments, and the ability to execute divestitures or strategic transactions.

Management Commentary and Tone:

• Jim Williamson, President and CEO, highlighted an annualized total shareholder return of 14.2% and the execution of initiatives to strengthen the balance sheet and accelerate capital return.
• Management expressed confidence in the Global Wholesale & Specialty business momentum and the disciplined approach of the Reinsurance Treaty team.
• The tone emphasizes positioning the company for its "next chapter" through capital deployment and strategic focus.

Other Key Points:

• The company repurchased $474 million of common shares during the quarter.
• Total Shareholder Return (TSR) was 14.2% annualized.
• On October 26, 2025 (effective October 1, 2025), the company entered into two adverse development reinsurance agreements ("ADC") covering North American liabilities within the Global Wholesale & Specialty and Legacy segments for losses prior to January 1, 2025.
• The company announced a commercial retail insurance renewal rights transaction, resulting in the reclassification of this business into the Legacy segment.
• A conference call regarding the results was scheduled for October 29, 2026, at 8:00 a.m. Eastern Time.