Q2 2026 Everest Group Ltd Earnings Call Transcript
Key Points
- Everest Group Ltd (EG) delivered strong second-quarter results with operating income of $585 million and an annualized after-tax net operating ROE of 14.9%.
- The core businesses (Reinsurance Treaty and Global Wholesale & Specialty) generated underwriting income of $317 million on a combined ratio of 90%, demonstrating strong underwriting discipline.
- The company's third-party capital platform, Mt. Logan Capital Management, grew AUM by 89% to approximately $3.4 billion, providing additional capital flexibility and fee income opportunities.
- Everest Group Ltd (EG) continues to aggressively return capital to shareholders, repurchasing $395 million in shares during the quarter and maintaining a $300 million quarterly floor, reflecting confidence in the balance sheet.
- The company is enhancing transparency by providing new consolidated financial results for core businesses and revising its definition of after-tax net operating income to align with industry peers.
- Gross written premium in core businesses declined approximately 7% year-over-year due to deliberate underwriting choices, reflecting a softening market and reduced exposure to US casualty lines.
- Property pricing in the market declined 15% to 20% at renewals, and while Everest Group Ltd (EG) achieved better pricing, the competitive environment is expected to persist into 2027.
- The company experienced higher catastrophe losses in the quarter, including $85 million net losses driven by the Middle East conflict and weather-related events, impacting the combined ratio.
- Everest Group Ltd (EG) strengthened casualty reserves by nearly $200 million due to elevated loss trends and adverse development in older accident years, reflecting a cautious outlook on the US tort environment.
- The expense ratio increased to 5.1% in the core businesses due to lower net earned premium and higher investments in the business, which could pressure margins in the near term.
Good day and welcome to the Everest Group Limited second-quarter 2026 earnings conference call.
(Operator Instructions) Please note that today's event is being recorded.
I would now like to turn the conference over to Matt Rohrmann, Senior Vice President, Head of Investor Relations. Please go ahead.
Thank you, Chris. Good morning, everyone. Welcome to Everest Group Limited's second quarter of 2026 earnings conference call.
The Everest executives leading today's call are Jim Williamson, President and CEO; and Elias Habayeb, Executive Vice President and CFO. We are also joined by other members of the Everest management team.
Before we begin, I will preface the comments by noting that today's call will include forward-looking statements. Actual results may differ materially. We undertake no obligation to publicly update forward-looking statements.
Please note that forward-looking statements include estimates, projections, and forecasts of future results
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