Everest Group Reports 71% Q1 Profit Drop Amid Wildfire Losses

Everest Group reported a sharp decline in first-quarter net income to $210 million, down from $733 million a year earlier, primarily due to significant catastrophe losses from California wildfires. The company's earnings per share missed analyst estimates, with adjusted EPS falling to $6.45 from $16.32 the previous year. Catastrophe-related claims, especially from the wildfires, resulted in a combined ratio of 102.7%, indicating claims outpaced premiums earned. Gross written premiums and revenue saw slight declines, but property and specialty lines experienced growth, partially offset by weaker casualty lines. Despite the challenging quarter, Everest's investment income improved, and leadership remains optimistic about future growth and the company's ability to deliver on strategic objectives. Industry-wide, insurers like Everest faced similar headwinds from elevated natural disaster losses, though the reinsurance sector continues to benefit from higher pricing and improved margins.