Everest Group (EG) Down 6.6% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Everest Group (EG). Shares have lost about 6.6% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Everest Group due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Everest Q1 Earnings Top, Revenues Miss Estimates, Premiums Decline Y/Y

Everest Group, Ltd. reported  first-quarter 2026 operating income of $16.08 per share, which beat the Zacks Consensus Estimate by 14.6%. The bottom line increased significantly 149% year over year. Everest Group benefited from solid investment income growth and improved catastrophe losses, which driving a sharp improvement in profitability despite weaker premiums and top-line pressure.

EG’s Q1 Operational Update

Total operating revenues of about $4 billion declined 4.6% year over year, reflecting lower premiums. The top line missed the Zacks Consensus Estimate by 7.7%. Gross written premiums  fell 18.5% year over year to $3.6 billion, reflecting an 8.5% decline in Reinsurance Treaty, partially offset by growth in Global Wholesale &Specialty. Our estimate was $4.8 billion.

Net investment income rose 15.5% year over year to $567 million, driven by a larger asset base and strong alternative investment returns. The figure exceeded our estimate of $491 million and the Zacks Consensus Estimate of $513 million.

Total claims and expenses declined 17% to $3.3 billion, primarily due to lower incurred losses and loss adjustment expenses, commissions, brokerage, taxes and fees. Our estimate was $3.7 billion. Underwriting income totaled $316 million in contrast to an underwriting loss of $104 million in the year-ago quarter. Pre-tax catastrophe losses, net of recoveries and reinstatement premiums, were $130 million, narrower than $472 million a year ago. The combined ratio improved 1160 basis points year over year to 91.2. The Zacks Consensus Estimate was 94.2, while our estimate was 93.9.

Q1 Segmental Update of Everest Group

Reinsurance Treaty segment generated gross written premiums of $2.7 billion, down 8.5% year over year and below our estimate of $3.6 billion. The decline reflected lower volumes in Property Non-Catastrophe XOL, Casualty Pro-Rata and Casualty XOL, which were offset by growth in Property Catastrophe XOL and Financial Lines. The segment’s combined ratio improved to 87.2 from 104.7 a year ago. Our estimate was  91.

Global Wholesale & Specialty segment posted gross written premiums of $793 million, up 1.6% year over year. Higher premiums in Accident and Health and Other Specialty were offset by declines in Property / Short Tail, Specialty Casualty, Professional Liability and Workers' Compensation. The combined ratio improved 110 basis points year over year to 96.8. Our estimate was 100.4.

Legacy Segment posted gross written premium declined sharply by 80.3% year over year to $135 million, reflects a limited volume of renewal and new policies tied to the commercial retail insurance business. Net premiums earned fell 26.1% year over year to $399 million. Underwriting loss widened to $22 million from $14 million incurred in the year ago quarter.

EG’s Financial Update

Everest Group exited the first quarter of 2026 with total investments and cash of $45 billion, up 0.9% from the 2025-end level. Shareholders’ equity fell 1.3% year over year to $15.3 billion. Book value per share increased 1% year over year to $383.75 as of March 31, 2026.

Annualized net income return on equity improved 1110 basis points year over year to 16.8%. Cash flow from operations totaled $649 million for the year, down 30.1% year over year.

Capital Deployment of EG

EG paid common share dividends of $80 million, or $2 per share, during the reported quarter. It repurchased $331 million worth of shares in this quarter.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

VGM Scores

Currently, Everest Group has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Everest Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Everest Group is part of the Zacks Insurance - Multi line industry. Over the past month, Markel Group (MKL), a stock from the same industry, has gained 4.2%. The company reported its results for the quarter ended March 2026 more than a month ago.

Markel Group reported revenues of $3.55 billion in the last reported quarter, representing a year-over-year change of +0.1%. EPS of $21.61 for the same period compares with $25.72 a year ago.

For the current quarter, Markel Group is expected to post earnings of $30.20 per share, indicating a change of +18.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.3% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Markel Group. Also, the stock has a VGM Score of D.

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This article originally published on Zacks Investment Research (zacks.com).

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