Highlights

  • Everest Group shows 149.26% basic EPS growth, a P/E of 8.49 and PEG of -5.18.
  • Second quarter net income was $559 million against $680 million; combined ratio was 92.0%.
  • Everest repurchased 1.2 million shares for $395 million in the second quarter.
  • Book value per share was $398.83 at June 30, 2026, against $379.83.

One-year earnings growth of 149.26%, paired with a trailing twelve-month P/E of 8.49 and an expected-basis PEG of -5.18, puts Everest Group (NYSE:EG) among undervalued growth stocks, with shares trading at USD 390.04 on October 28, 2026, down 0.27%. Alongside those figures, the reinsurance and insurance group agreed on March 22 to sell its Canadian commercial retail insurance operations for C$410 million, announced on June 17 the launch of the Annapurna Re sidecar with Stone Point, and reported second quarter 2026 net income of $559 million in early August.

Everest Group is headquartered in Hamilton, Bermuda, and incorporated in Bermuda. It describes itself as a global underwriting leader in property, casualty and specialty reinsurance and insurance. Since January 1, 2026 it has reported three segments: Reinsurance Treaty, Global Wholesale & Specialty, and Legacy, which holds the divested and held-for-sale parts of the commercial retail insurance business, the sports and leisure business sold in October 2024, and run-off asbestos and environmental exposures.

Growth: Second Quarter Earnings, Premiums and Segment Results

Net income was $559 million in the second quarter against $680 million a year earlier, and $1,213 million for the first six months against $890 million. Second quarter basic and diluted earnings per share were both $14.22 against $16.10, and six-month basic and diluted earnings per share were both $30.45 against $20.93.

Gross written premiums were $3,772 million, down 19.4%, and net written premiums were $3,037 million, down 26.3%. The consolidated combined ratio was 92.0% against 90.4%. Underwriting gain was $283 million in Reinsurance Treaty, with a combined ratio of 88.5% against 84.9%, and $34 million in Global Wholesale & Specialty, with a combined ratio of 95.2% in both periods. Legacy recorded an underwriting loss of $36 million.

The company said incurred losses and loss adjustment expenses for the six months fell 18.2% to $4.4 billion, with current year catastrophe losses of $224 million against $554 million.

Valuation: P/E of 8.49, PEG of -5.18 and Book Value

The P/E ratio of 8.49 is measured on trailing twelve-month earnings, and the PEG ratio of -5.18 on expected growth. Book value per share was $398.83 at June 30, 2026, against $379.83 at December 31, 2025. Net cash flows from operating activities were $939 million for the six months against $2.0 billion.

On the second quarter earnings call, Chief Executive Officer James Williamson said he has conviction that the share price does not reflect the true value of the company. Chief Financial Officer Elias Habayeb said that, given market conditions and the company's valuation, repurchasing shares is a top allocation priority.

Capital and Balance Sheet: Repurchases, Dividends and Debt

Everest repurchased 1.2 million shares for $395 million in the second quarter and 2.2 million shares for $725 million in the six months, and paid dividends of $78 million and $158 million, including a $2.00 per share quarterly dividend paid on June 26, 2026. Under the authorization to repurchase up to 42 million shares, 35.8 million had been repurchased by June 30, 2026, leaving 6,139,787 shares. Habayeb said the company views $300 million as a quarterly repurchase floor and expects to exceed it when appropriate.

Total debt was $3,589 million. Cash and short-term investments were $3.6 billion against $4.3 billion at December 31, 2025. The company said operating cash flow could become negative in the near term as catastrophe claims are paid.

Disclosed Risks and Outlook: Group Supervision, Sales and Reserves

During the quarter the Bermuda Monetary Authority informed the company of its determination to become Group Supervisor, with Everest Reinsurance (Bermuda) as designated insurer. A twelve-month transition period ends in January 2027, extendable by up to twelve months. The company disclosed that group supervision could affect capital requirements and compliance costs.

Prior year catastrophe losses included $55 million related to the 2024 Baltimore Bridge collapse. Habayeb said the company increased this reserve and strengthened casualty reserves on elevated loss trends. It stated that it is party to ordinary-course insurance and reinsurance disputes and to no other material litigation.

The Canadian sale is anticipated to close in the second half of 2026 and the sale of Colombian operations to AIG in early 2027, both subject to approvals. Habayeb guided a catastrophe load of roughly 8 points for Reinsurance Treaty and about 4 points for Global Wholesale & Specialty, and said the company expects to cede roughly $200 million of premium a quarter to Annapurna Re over three years.