Everest $1.6bn net profit boosted by record investment income
The reinsurance segment and record investment income powered Everest Group to a $1.6 billion profit for fiscal 2025, the company reported.
It led to a 13.1 per cent total shareholder return as underwriting discipline and record investment income offset lower premium volume.
Net operating income totalled $1.9 billion, producing a 12.4 per cent operating return on equity, while book value per share excluding unrealised investment gains rose to $379.70.
The company repurchased $797 million of common shares during the year, including $397 million in the fourth quarter.
Gross written premium declined 3.1 per cent to $17.7 billion, reflecting targeted reductions in casualty and commercial insurance lines.
The group reported a 98.6 per cent combined ratio for the year, with reinsurance posting a strong 91.7 per cent, partially offset by continued pressure in insurance.
Fourth-quarter net income reached $446 million, compared with a loss a year earlier, as catastrophe losses fell to $216 million from $312 million. Net investment income rose to $562 million in the quarter and $2.1 billion for the year, a company record.
President and chief executive Jim Williamson said Everest’s actions to simplify the business and strengthen the balance sheet had improved financial flexibility and supported capital returns.
The company said its January 1 reinsurance renewals were well executed and that it remained focused on higher-margin specialty insurance lines.
Mr Williamson said: “In 2025 we took deliberate actions to simplify the business, improve the return profile and strengthen the company’s balance sheet.
“These actions have increased our financial flexibility and support our intention to return capital to shareholders, as reflected in the share repurchases executed during the quarter.
“Our sharpened underwriting focus positions Everest to deliver attractive margins. The reinsurance team continued to execute with the discipline expected of a top-tier global reinsurer, delivering a well-executed January 1 renewal, appropriately navigating the market cycle.
“In our insurance business, focused on global wholesale and specialty, we’re targeting lines where Everest has expertise and competitive advantage.
“We continued to attract world-class senior leadership talent who share our culture of ownership and accountability and are committed to driving consistent and sustained shareholder returns.”
• For more on Everest Group results, see Related Media
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