Second Quarter 2026
Filed Jul 29, 2026Everest Reports Second Quarter 2026 Results: $559 million of Net Income, $317 million of Underwriting Income from Core Businesses, and $395 million of Common-Share Repurchases
Core underwriting remained profitable, investment income was substantial, book value increased, and repurchases accelerated. However, net income, net operating income, gross written premium, and combined ratios were lower or weaker versus the prior-year quarter, while catastrophe losses increased.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net incomeGAAP | $559 million | – | – |
| Net income per diluted common shareGAAP | $14.22 | – | – |
| Net income return on average equity (annualized)GAAP | 14.2% | – | – |
| Net operating incomenon-GAAP | $585 million | – | – |
| Net operating income per diluted common sharenon-GAAP | $14.85 | – | – |
| After-tax net operating income return on average equity (annualized)non-GAAP | 14.9% | – | – |
| Book value per common share outstandingother | $398.83 | – | – |
| Book value per common share outstanding excluding URA(D)non-GAAP | $407.67 | – | – |
| Total Shareholder Return (annualized)other | 16.8% | – | – |
| Gross written premium, Everest Groupother | $3,772 million | – | (19.4)% |
| Net written premium, Everest Groupother | $3,037 million | – | (26.3)% |
| Net premiums earned, Everest Groupother | $3,490 million | – | (12.6)% |
| Combined ratio, Everest Groupother | 92.0% | – | 1.6 pts |
| Attritional combined ratio, Everest Groupnon-GAAP | 89.3% | – | 0.7 pts |
| Pre-tax underwriting income (loss), Groupother | $281 million | – | – |
| Pre-tax net catastrophe losses, Everest Groupother | $94 million | – | – |
| Pre-tax net unfavorable (favorable) prior year development, Everest Groupother | $— million | – | – |
| Net investment incomeother | $523 million | – | – |
| Gross written premium, Core businessesother | $3,678 million | – | (5.9)% |
| Combined ratio, Core businessesother | 90.0% | – | 3.0 pts |
| Attritional combined ratio, Core businessesnon-GAAP | 87.3% | – | 1.7 pts |
| Pre-tax net catastrophe losses, Core businessesother | $85 million | – | – |
| Net income, year-to-dateGAAP | $1,213 million | – | – |
| Net operating income, year-to-datenon-GAAP | $1,232 million | – | – |
| Combined ratio, Everest Group, year-to-dateother | 91.5% | – | (4.9) pts |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Reinsurance TreatyGross written premiums decreased 9.1% versus the prior year quarter on a comparable basis (constant dollar basis and excluding reinstatement premiums), to approximately $2.7 billion. Reduction was primarily led by a 25.0% decrease in Casualty XOL, 22.8% in Casualty Pro-Rata, 9.2% in Property Non-Catastrophe XOL, and 6.8% in Property Catastrophe XOL, partially offset by a 3.4% increase in Property Pro-Rata. | Gross written premium of $2,720 million | – | (7.8)% |
| Global Wholesale & SpecialtyCurrent-year loss ratio was 60.6% versus 64.7%, while other underwriting expenses were 12.6% versus 10.2% and the combined ratio was unchanged at 95.2%. | Gross written premium of $958 million | – | 0.1% |
| LegacyPre-tax underwriting income (loss) was ($36) million. | Gross written premium of $94 million | – | – |
Capital returns
- Common share repurchases of $395 million, versus $200 million in the prior-year quarter.
- Number of common shares repurchased of 1.2 million, versus 0.6 million in the prior-year quarter.
- Dividends per share of $2.00, unchanged from $2.00 in the prior-year quarter.
- Dividends to shareholders of $78 million, versus $84 million in the prior-year quarter.
- Year-to-date common share repurchases of $725 million and dividends to shareholders of $158 million.
What drove it
- Pre-tax underwriting income (loss) was $283 million for Reinsurance Treaty, $34 million for Global Wholesale & Specialty, and ($36) million for Legacy.
- Reinsurance Treaty pre-tax catastrophe losses were $75 million net of estimated recoveries and reinstatement premiums, driven primarily by losses associated with the Iran War and a number of mid-sized events globally.
- Net investment income of $523 million versus $532 million was driven by lower alternative investment returns.
- Reinsurance Treaty attritional loss ratio increased 140 basis points over second quarter 2025 to 57.1%, and its attritional combined ratio increased 220 basis points to 85.4%.
- Excluding the impact of elevated non-catastrophe weather losses, Reinsurance Treaty's attritional loss ratio would have been 54.4% and its attritional combined ratio would have been 82.7%.
Concerns
- Group gross written premium decreased (19.4)% and net written premium decreased (26.3)% versus the prior-year quarter.
- The Group combined ratio increased 1.6 points to 92.0%, while the Core businesses combined ratio increased 3.0 points to 90.0%.
- Group pre-tax net catastrophe losses increased to $94 million from $20 million.
- Net income decreased to $559 million from $680 million, and non-GAAP net operating income decreased to $585 million from $734 million.
- Global Wholesale & Specialty's combined ratio was 95.2%, with other underwriting expenses of 12.6% versus 10.2%.
What to watch
- Reinsurance Treaty premium trends after the comparable-basis gross written premium decrease of 9.1%.
- The effect of catastrophe losses and elevated non-catastrophe weather losses on Reinsurance Treaty profitability.
- Whether Global Wholesale & Specialty can improve from its 95.2% combined ratio while managing its 12.6% other underwriting expense ratio.
- Alternative investment returns following the stated decline in net investment income.
- The pace of common-share repurchases, which totaled $395 million during the quarter.
Balance sheet and cash flow
- Total shareholders' equity of $15,430 million, versus $15,019 million.
- Total shareholders' equity excluding URA(D) of $15,772 million, versus $15,272 million.
- Total investments and cash of $44,863 million, versus $44,300 million.
- Book value per common share outstanding of $398.83 at June 30, 2026 versus $379.83 at December 31, 2025.
- Book value per common share outstanding excluding unrealized gains (losses) on fixed maturity, available for sale securities of $407.67 at June 30, 2026 versus $379.70 at December 31, 2025.
Analysis
Everest reported second-quarter net income of $559 million, or $14.22 per diluted share, compared with $680 million, or $16.10 per diluted share, in the prior-year quarter. Non-GAAP net operating income was $585 million, or $14.85 per diluted share, compared with $734 million, or $17.36 per diluted share. Annualized net income return on average equity was 14.2%, while annualized after-tax net operating income return on average equity was 14.9%.
Underwriting remained profitable but deteriorated versus the prior-year quarter. The Group combined ratio was 92.0%, up 1.6 points, and its attritional combined ratio was 89.3%, up 0.7 points. Core businesses produced a 90.0% combined ratio and an 87.3% attritional combined ratio, increases of 3.0 points and 1.7 points, respectively. Group pre-tax underwriting income was $281 million, including $283 million in Reinsurance Treaty, $34 million in Global Wholesale & Specialty, and a ($36) million loss in Legacy.
Premium volume contracted. Group gross written premium was $3,772 million, down (19.4)%, while Core-business gross written premium was $3,678 million, down (5.9)%. Reinsurance Treaty gross written premium was 2,720, down (7.8)%, and the company cited comparable-basis contraction in Casualty XOL, Casualty Pro-Rata, Property Non-Catastrophe XOL, and Property Catastrophe XOL. Global Wholesale & Specialty gross written premium was $958 million, essentially unchanged at 0.1%, but its combined ratio remained 95.2% as lower current-year loss ratio was offset by higher other underwriting expenses.
Catastrophe and weather effects were a central pressure point. Group pre-tax net catastrophe losses were $94 million compared with $20 million. Reinsurance Treaty reported $75 million of catastrophe losses, driven primarily by the Iran War and a number of mid-sized events globally. The segment's reported attritional loss ratio was 57.1%; excluding elevated non-catastrophe weather losses, the company stated it would have been 54.4%. Net investment income was $523 million versus $532 million, with the decrease attributed to lower alternative investment returns.
Capital deployment and balance-sheet measures were constructive. Everest repurchased $395 million of common shares during the quarter, compared with $200 million a year earlier, and paid a $2.00 per-share dividend. Book value per common share outstanding reached $398.83 at June 30, 2026, versus $379.83 at December 31, 2025, while book value excluding URA(D) was $407.67 versus $379.70. Total investments and cash were $44,863 million and total shareholders' equity was $15,430 million. The filing provided no forward guidance.
Management, verbatim
Everest delivered a strong quarter driven by meaningful contributions from both underwriting income across our Core businesses and investments resulting in an annualized total shareholder return of 16.8%. The results this quarter show the strength of the franchise we have built and the benefits of our actions to strengthen underwriting performance as well as optimize the balance sheet.
Jim Williamson, Everest President and CEO
Our Reinsurance Treaty team delivered another excellent quarter. This was clear during the mid-year renewals, where the team’s world class execution resulted in meaningful outperformance on rate and terms versus the market.
Jim Williamson, Everest President and CEO
As we look ahead, our focus is on profitably developing our Core businesses while effectively deploying capital, where share repurchases remain a top priority.
Jim Williamson, Everest President and CEO
Not in the filing
stated, not guessed- Forward guidance for revenue, gross margin, operating expenses, tax rate, or other metrics was not provided.
- Previous-release outlook was not provided, so comparison with prior guidance is unavailable.
- Total revenue was not reported.
- Gross margin was not reported.
- Operating income was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Cash as a standalone balance-sheet metric was not reported.
- Debt was not reported.
- Prior-quarter comparisons for reported metrics were not provided.
- The filing text was truncated during the Global Wholesale & Specialty underwriting-results table; metrics beyond the visible portion of that table were unavailable.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.