Analyst Robert Farnam from Janney Montgomery Scott has begun coverage of Everest Group, identified by the ticker (EG, Financial), with a Buy rating. Farnam has set a fair value estimate for the stock at $425, indicating a positive outlook for potential investors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for Everest Group Ltd (EG, Financial) is $395.38 with a high estimate of $489.00 and a low estimate of $350.00. The average target implies an upside of 18.77% from the current price of $332.90. More detailed estimate data can be found on the Everest Group Ltd (EG) Forecast page.
Based on the consensus recommendation from 14 brokerage firms, Everest Group Ltd's (EG, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Everest Group Ltd (EG, Financial) in one year is $411.94, suggesting a upside of 23.74% from the current price of $332.9. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Everest Group Ltd (EG) Summary page.
EG Key Business Developments
Release Date: May 01, 2025
- Total Group Written Premium: $4.4 billion, similar to Q1 2024.
- Combined Ratio: 102.7%, elevated due to catastrophic events.
- Reinsurance Premium Growth: 16% growth in property lines, 8% excluding reinstatement premiums.
- Casualty Pro-rata Written Premium: Down 22% in the quarter.
- Catastrophe Losses: $461 million, primarily from California wildfires.
- Insurance Written Premium: Down 1.3% from prior year; property lines grew 19%, specialty businesses grew 16%.
- Operating Income: $276 million despite significant catastrophe losses.
- Gross Written Premiums: $4.4 billion, 2% decrease in constant dollars excluding reinstatement premiums.
- Attritional Loss Ratio: 62.2%, a 330 basis point increase over the prior year's quarter.
- Net Investment Income: $491 million for the quarter.
- Cash Flow from Operations: $928 million during the quarter.
- Book Value Per Share: $332.39, an improvement of 3.5% from year-end 2024.
- Share Repurchase: $200 million repurchased at an average price of $348.43 per share.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Everest Group Ltd (EG, Financial) reported $276 million of operating income despite significant catastrophe loss activity in the first quarter.
- Total premiums in the reinsurance segment increased, driven by approximately 16% growth in property lines.
- The company successfully executed its one-year renewal strategy in US casualty lines, maintaining strong discipline in underwriting.
- Everest Group Ltd (EG) repurchased $200 million of shares in the quarter, demonstrating a commitment to delivering value to shareholders.
- The international insurance business showed strong growth in key markets at attractive loss ratios, turning a modest profit despite continued investment.
Negative Points
- The combined ratio was elevated at 102.7% due to significant catastrophe losses, including $440 million from the California wildfires.
- Gross written premiums decreased by 2% in constant dollars, excluding reinstatement premiums.
- The attritional loss ratio increased by 330 basis points over the prior year's quarter, driven by aviation losses and conservative loss picks.
- The insurance segment saw a 1.3% decline in written premium from the prior year, primarily due to a 15% decline in the third-party book.
- Casualty pro-rata written premium was down almost 22% in the quarter, reflecting ongoing portfolio actions and abundant capacity in the market.
