Everest Group, Ltd. EG is expected to register a decrease in both top and bottom lines when it reports second-quarter 2026 results on July 29, after the closing bell.
The Zacks Consensus Estimate for EG’s second-quarter revenues is pegged at $4.09 billion, indicating a 9% decrease from the year-ago reported figure.
The consensus estimate for earnings is pegged at $14.59 per share. The Zacks Consensus Estimate for EG’s second-quarter earnings has decreased 0.7% over the past 30 days. The estimate suggests a year-over-year decrease of 16%.
What the Zacks Model Unveils for EG
Our proven model predicts an earnings beat for Everest Group this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat.
Earnings ESP: Everest Group has an Earnings ESP of +1.67%. This is because the Most Accurate Estimate of $14.83 is pegged higher than the Zacks Consensus Estimate of $14.59. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: EG carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Factors Likely to Shape EG’s Q2 Results
Premium growth is likely to have been pressured by the completed exit from the Commercial Retail Insurance business and the ongoing runoff of legacy casualty exposures. We expect net written premiums to have declined 18.1% year over year to $3.4 billion in the second quarter.
The Insurance segment is likely to have been impacted by portfolio actions in specialty casualty lines and the sale of renewal rights. However, higher premiums from other specialty and accident & health businesses are expected to have partly offset the decline. We estimate premiums earned of $760.9 million in the to-be-reported quarter.
The Reinsurance segment is expected to have been affected by lower premiums in North America casualty pro rata and casualty excess-of-loss businesses. However, growth in the property and financial lines books is likely to have partly offset the weakness. We expect second-quarter premiums earned to have declined 16.3% year over year to $2.2 billion.
Net investment income is likely to have benefited from an increase in fixed maturities, a rise in income from limited partnerships, and an increase in income from other alternative investments. We expect net investment income to have been $561.5 million. The Zacks Consensus Estimate is pegged at $533.6 million.
Disciplined underwriting is expected to have supported underwriting profitability as management continues to prioritize business that meets return thresholds. However, catastrophe losses and competitive market conditions are likely to have partially offset these benefits, leading to a higher combined ratio. We expect the combined ratio to be 93.4 in the to-be-reported quarter. The Zacks Consensus Estimate for the metric is pegged at 93.7
We estimate the underwriting income from the Reinsurance segment to be $271.1 million in the to-be-reported quarter.
Total claims & expenses are likely to have decreased largely owing to lower incurred losses and loss adjustment expenses, commission, brokerage, taxes and fees, and other underwriting expenses. We expect the metric to be $3.4 billion.
Share buybacks in the to-be-reported quarter are anticipated to have provided a boost to the bottom line.
Other Stocks to Consider
Here are some other insurance stocks you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:
Axis Capital Holdings Limited AXS has an Earnings ESP of +3.82% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $3.23, indicating a year-over-year decrease of 1.8%.
AXS’ earnings beat estimates in each of the last four reported quarters.
The Allstate Corporation ALL has an Earnings ESP of +2.59% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $5.61, indicating a 5.5% year-over-year decrease.
ALL’s earnings beat estimates in each of the last four reported quarters.
Prudential Financial Inc. PRU has an Earnings ESP of +0.45% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $3.39, indicating a 5.3% year-over-year decrease.
PRU’s earnings beat estimates in three of the last four reported quarters.
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Everest Group, Ltd. (EG): Free Stock Analysis Report
Prudential Financial, Inc. (PRU): Free Stock Analysis Report
The Allstate Corporation (ALL): Free Stock Analysis Report
Axis Capital Holdings Limited (AXS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).