Everest Group reported its first-quarter 2025 financial results, showing a decline in net income and operating income due to a significant increase in catastrophe losses.
The company posted net income of US$210 million, or US$4.90 per diluted share, a decrease from US$733 million, or US$16.87 per diluted share, in the same quarter last year. Net operating income also dropped to US$276 million, or US$6.45 per diluted share, compared to US$709 million, or US$16.32 per diluted share, in Q1 2024.
Gross written premiums for the quarter totalled US$4.4 billion, reflecting a 2% decline year-over-year for the company. The reinsurance segment saw a decrease of 1.1%, while the insurance segment’s premiums declined by 0.1%.
Despite these reductions, the company saw strong growth in property and specialty lines, partially offset by declines in some casualty lines.
The combined ratio for the company was 102.7%, up from 88.8% in Q1 2024, due mainly to catastrophe losses. Pre-tax catastrophe losses amounted to US$472 million, significantly higher than the US$85 million recorded in Q1 2024. Of the total catastrophe losses, US$442 million was related to the California wildfires.
The company’s reinsurance segment also saw pre-tax catastrophe losses of US$461 million, with reinstatement premiums totalling US$62 million, compared to no reinstatement premiums in the prior year.
Despite the impact of catastrophe losses, Everest’s net investment income improved to US$491 million from US$457 million in Q1 2024. Operating cash flow for the quarter was US$928 million, down from US$1.1 billion in the prior year.
Everest’s leadership, including President and CEO Jim Williamson (pictured), expressed confidence in the company’s ability to meet its return objectives, despite the higher-than-expected catastrophe losses. “We continue to see opportunities to deploy capital at excellent expected returns,” Williamson said, adding that Everest is on track with its strategic plan.
Looking ahead, Everest is optimistic about its prospects in both reinsurance and insurance, particularly in property and specialty segments, which continue to drive growth.
