Everest Group Faces Decline Despite Positive Long-Term Outlook

With a market cap of $14.8 billion, Everest Group, Ltd. (EG) stands as a prominent player in the global reinsurance and insurance solutions sector. Based in Hamilton, Bermuda, the company offers a wide array of risk management products, adapting its services to meet the diverse needs of both individuals and businesses worldwide.

Recent Stock Performance

Over the past year, shares of Everest Group have declined 6.4%, contrasting sharply with the S&P 500 Index’s ($SPX) 17.5% gain. Additionally, in 2025, EG has seen a 5.2% drop, compared to the SPX’s modest 1.3% return year-to-date.

When analyzed against the Invesco KBW Property & Casualty Insurance ETF’s (KBWP) performance, which delivered 13.2% returns over the last 52 weeks, Everest Group’s performance further illustrates its struggles in a competitive landscape.

Financial Overview

Economic headwinds and rising costs have contributed to Everest’s challenges, but analysts retain a positive outlook for the company’s future. In its Q4 earnings report on February 3, Everest Group revealed a mixed performance that caused a 1% drop in share price in the following trading session. Revenue experienced a healthy year-over-year growth of 26.7%, reaching $4.64 billion, which surpassed Wall Street’s projection of $4.44 billion. Despite this, the firm reported a net loss of $593 million and a net operating loss of $780 million, largely due to unfavorable developments in prior-year loss reserves within U.S. casualty lines. Furthermore, operating cash flow decreased to $780 million, down from $1 billion during the same quarter of the previous year.

Looking ahead to the current fiscal year, which concludes in December, analysts predict that EG’s EPS will increase 60.7% year-over-year to $47.93. The company has a mixed history of earnings surprises, having exceeded consensus estimates in two of the last four quarters while falling short in the other two.

Analyst Ratings

Out of the 14 analysts covering the stock, the consensus recommendation is a “Moderate Buy.” This assessment consists of four “Strong Buy,” one “Moderate Buy,” eight “Holds,” and one “Strong Sell” ratings. This outlook is slightly less optimistic compared to a month ago, when six analysts recommended a “Strong Buy.”

On February 4, Joshua Shanker from Bank of America Securities reaffirmed a “Buy” rating on Everest Group. The average analyst price target stands at $397.69, indicating a potential upside of 15.7% from current levels. Moreover, the highest price target of $476 suggests an optimistic scenario where EG could rise as much as 38.5% from present values.

On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is intended solely for informational purposes. For more details, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.