Everest Group (EG) Is Down 9.9% After Exiting Retail Insurance and Taking Reserve Charges – What’s Next?

• In October 2025, Everest Group announced disappointing third-quarter results, substantial reserve charges, and the sale of its Global Retail Commercial Insurance business, while also entering into a US$1.2 billion adverse development reinsurance agreement to address prior-year liabilities.
• This series of actions marks a significant pivot toward Everest’s core reinsurance and specialty insurance businesses as it looks to resolve legacy issues and reposition for future stability.
• We’ll now examine how Everest Group’s decision to exit retail commercial insurance and manage reserves impacts its investment outlook.

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Everest Group Investment Narrative Recap

To own shares in Everest Group, you need to believe in its ability to capitalize on resilient demand for reinsurance and specialty insurance, especially as natural catastrophe risks drive premium growth across global markets. The recent sale of its Global Retail Commercial Insurance business, coupled with substantial reserve charges, brings the core reinsurance strategy into sharper focus but also magnifies near-term uncertainty around reserve adequacy, the biggest risk, while leaving the short-term catalyst, robust catastrophe reinsurance pricing, sensitive to volatility in loss trends and competition. Of Everest’s recent moves, the US$1.2 billion adverse development reinsurance agreement stands out. This transaction addresses potential future reserve development from prior years, aiming to shore up the company’s balance sheet as it refines its business mix, which is closely tied to both managing risk and maintaining investor confidence in profit recovery. On the other hand, prudent investors should weigh the elevated uncertainty around Everest’s reserve adequacy and whether recent actions will be enough to prevent further...

Read the full narrative on Everest Group (it's free!)

Everest Group's outlook anticipates $16.8 billion in revenue and $3.6 billion in earnings by 2028. This implies a 1.7% annual revenue decline and a $2.8 billion earnings increase from current earnings of $798 million.

Uncover how Everest Group's forecasts yield a $390.87 fair value, a 24% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members set fair value estimates for Everest Group between US$378 and US$1,289, gathered from 8 diverse perspectives. While some anticipate strong profit recovery, others emphasize how heightened competitive pressures could limit future revenue and net margin expansion; consider how these differing views might influence your own outlook.

Explore 8 other fair value estimates on Everest Group - why the stock might be worth just $378.00!

Build Your Own Everest Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Everest Group research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Everest Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Everest Group's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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