Everest Group reported a sharp rise in first-quarter 2026 earnings, with net income more than tripling to $653 million, as the (re)insurer’s strategic repositioning begins to deliver results despite a decline in premium volume.
Diluted earnings per share increased to $16.21 from $4.90 a year earlier, while net operating income reached $648 million, or $16.08 per share, compared with $276 million, or $6.45 per share, in Q1 2025. The group also reported an annualized total shareholder return of 16.1% and an operating return on equity of 16.7%.
Gross written premiums fell 18.5% year-on-year to $3.6 billion, reflecting a deliberate pullback tied to portfolio restructuring. Reinsurance Treaty premiums declined 8.5%, while Global Wholesale & Specialty recorded modest growth of 1.6%. Excluding the Legacy segment, the overall premium decline narrowed to 6.4%.
The reduction follows Everest’s October 2025 agreement to transfer renewal rights for its Global Retail Commercial Insurance business to American International Group, covering approximately $2 billion in premiums across key international markets. The transaction also included a $1.2 billion adverse development reinsurance agreement with Longtail Re, an affiliate of Stone Ridge Holdings Group, aimed at protecting against reserve deterioration on prior-year North American policies.
Underwriting performance remained stable, with a group combined ratio of 91.2%. The Reinsurance Treaty segment delivered a combined ratio of 87.2%, while Global Wholesale & Specialty reported 96.8%. Attritional combined ratios stood at 85.0% for Reinsurance Treaty and 92.6% for Global Wholesale & Specialty, highlighting continued underwriting discipline.
Catastrophe losses dropped significantly to $130 million pre-tax, compared with $472 million in the prior-year period, which had been heavily impacted by large-scale wildfire events. The broader market also experienced a quieter quarter, supporting improved profitability.
Net investment income rose to $567 million from $491 million, driven in part by alternative investment returns, while operating cash flow totaled $649 million.
President and CEO Jim Williamson said:
“delivered a strong start to the year as the strategy we implemented to improve our return profile and capital efficiency is becoming evident in our results.”
The performance comes amid a softening reinsurance market, with abundant capital and easing pricing placing greater emphasis on underwriting discipline and capital efficiency. Everest indicated it will maintain a focused approach to risk selection and continue prioritising shareholder returns as market conditions evolve.
