Everest Group reported its Q1 2025 financial results, showing a significant drop in both net income and operating income. The main cause was a sharp rise in catastrophe losses.
The company posted net income of $210 million, or $4.90 per diluted share. This represents a decrease from $733 million, or $16.87 per share, in Q1 2024. Net operating income also fell to $276 million, or $6.45 per share, down from $709 million, or $16.32 per share in the same quarter last year.
Gross written premiums for the quarter totaled $4.4 billion, marking a 2% year-over-year decline. The reinsurance segment experienced a 1.1% drop, while the insurance segment’s premiums fell by 0.1%. Despite these declines, the company saw strong growth in property and specialty lines, which helped offset some losses in casualty lines.
Everest’s combined ratio rose to 102.7%, up from 88.8% in Q1 2024. This increase is mainly due to catastrophe losses. The company recorded pre-tax catastrophe losses of $472 million, a sharp rise from $85 million in Q1 2024. Of this amount, $442 million was linked to the California wildfires.
The reinsurance segment also faced pre-tax catastrophe losses of $461 million. Reinstatement premiums for this segment totaled $62 million, compared to no reinstatement premiums in the previous year.
Despite the catastrophe losses, Everest’s net investment income rose to $491 million, up from $457 million in Q1 2024. Operating cash flow for the quarter stood at $928 million, down from $1.1 billion in the same period last year.
Everest’s leadership, including President and CEO Jim Williamson, remains confident in the company’s ability to meet its financial goals. Williamson noted, “We continue to see opportunities to deploy capital at excellent expected returns.” He emphasized that Everest is on track with its strategic plan.
Looking ahead, Everest remains optimistic about its future in reinsurance and insurance, particularly in the property and specialty segments.
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