Fri, May 2, 8:31 PM (9 days ago)
**Everest Group, Ltd. (EG) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Total revenues increased by 3.1% to $4.3 billion, driven by a 5.5% increase in premiums earned and a 7.5% increase in net investment income. - **Profit Margins:** Net income decreased by 71.4% to $210 million due to higher incurred losses and loss adjustment expenses (LAE), which increased by 29.4% to $2.9 billion. - **Cash Flow:** Net cash provided by operating activities was $928 million, reflecting higher catastrophe loss payments and tax payments. **Key Metrics:** - **Combined Ratio:** Increased by 13.9 points to 102.7%, indicating higher underwriting losses. - **Loss Ratio:** Increased by 13.8 points to 75.1% due to higher attritional and catastrophe losses. - **Shareholders' Equity:** Increased by 1.9% to $14.1 billion, supported by unrealized appreciation on investments and net income. **Segment Performance:** - **Reinsurance:** Premiums earned increased by 6.5% to $2.9 billion, but incurred losses and LAE rose by 35.6% to $2.2 billion, leading to an underwriting loss of $96 million. - **Insurance:** Premiums earned increased by 4.9% to $913 million, with incurred losses and LAE rising by 16.3% to $640 million, resulting in an underwriting loss of $5 million. - **Other:** Premiums and losses decreased significantly due to run-off business. **Trends & Uncertainties:** - **Catastrophe Losses:** Significant impact from events like the Southern California wildfires and the Myanmar earthquake. - **Investment Portfolio:** Unrealized depreciation on fixed maturity securities, but overall portfolio quality remains high. - **Capital Management:** Strong capital position with ample liquidity and access to debt and equity markets. **Future Operations Impact:** - **Growth Strategy:** Continued focus on expanding the insurance business and strengthening the reinsurance portfolio. - **Risk Management:** Emphasis on maintaining a strong balance sheet and managing catastrophe exposures effectively. **Ticker:** EG