Update shared on17 Sep 2025
Fair value Decreased 1.80%Analysts have trimmed Everest Group’s price target to $386.33 amid margin compression and sector headwinds in reinsurance, tempered by selective optimism over firm-specific strengths and capital return potential.
Analyst Commentary
- Bearish analysts highlight concerns about the reinsurance sector due to compressing margins, rising costs of capital expected to surpass returns by 2027, and irrational property pricing despite increasing losses.
- The overall property and casualty (P&C) market appears to be transitioning from a hard market to a softer pricing environment, prompting selectivity; for Everest, outlook remains neutral amid uncertainty in Bermuda reinsurance and dependence on wind season outcomes.
- Bullish analysts see positive "idiosyncratic tailwinds" for reinsurers like Everest Group, including capital return potential and firm-specific strengths, positioning Everest as a top idea despite broader caution on P&C carriers.
- Everest's recent underlying reinsurance results were better than expected, though performance across other insurance verticals was mixed, supporting moderate optimism with updated price targets.
- Sector-wide rotation out of defensive P&C insurance stocks toward more economically sensitive names has pressured valuations, with analysts generally favoring personal lines over commercial/reinsurance exposure in the near term.
What's in the News
- Wells Fargo raised Everest Group's price target to $375 from $362, maintaining an Equal Weight rating; reinsurance results were strong in Q2 while insurance and other verticals delivered mixed performance (Periodicals).
- Everest Group completed a buyback tranche, repurchasing 580,883 shares (1.37% of shares outstanding) for $200 million between April and June 2025 (Key Developments).
- Cumulatively, Everest Group has repurchased 32,576,964 shares (65.14% of outstanding shares) for $4.34 billion since the inception of its buyback program in 2004 (Key Developments).
- As of June 2025, Everest Group was removed from the Russell 1000 Dynamic Index (Key Developments).
- The recent share buyback activity underscores the company's ongoing focus on returning capital to shareholders amidst mixed operating results (Periodicals & Key Developments).
Valuation Changes
Summary of Valuation Changes for Everest Group
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $393.43 to $386.33.
- The Future P/E for Everest Group remained effectively unchanged, moving only marginally from 4.99x to 4.91x.
- The Discount Rate for Everest Group remained effectively unchanged, moving only marginally from 6.81% to 6.82%.
Disclaimer
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