EG

Everest Group (NYSE:EG) has drawn fresh attention after reporting softer Q2 results, with revenue of US$3.96b that declined 11.8% year on year and missed analyst expectations, and the stock slipping 3.9% after the release. At around US$378 per share, Everest Group has given investors a 90 day share price return of 18.4% and a 1 year total shareholder return of 10.57%. This suggests recent momentum has been positive, even though the softer Q2 and the latest 3.9% pullback point to some renewed caution around its near term risk profile. Compare Everest Group's recent pullback with insurers showing stronger momentum and similar risk profiles by scanning our curated list of 75 resilient stocks with low risk scores. So is Everest Group’s recent drop after softer Q2 results a sign that the business is out of step with earlier enthusiasm, or has sentiment swung harder than the fundamentals justify, leaving the current valuation looking different to recent months? Against Everest Group’s last close of $378.28, the most widely followed narrative points to a fair value of $408.47. This frames the recent pullback in a different light. Read the complete narrative. Read the complete narrative. Everest Group’s narrative focuses on how earnings, margins and capital intensity could interact over the next few years. Curious which revenue and profit mix assumptions sit behind that valuation gap? The full narrative outlines the path between today’s $1.9b earnings base and the implied fair value target. Result: Fair Value of $408.47 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Everest Group’s growing catastrophe exposure and the pressure on property and casualty pricing could still undermine the current earnings narrative if loss trends or competition worsen. Find out about the key risks to this Everest Group narrative. If the mixed sentiment around Everest Group has you on the fence, consider acting while the data is fresh and pressure test the optimism for yourself with 5 key rewards. Do not stop your research with Everest Group. Broaden your watchlist now and give yourself more options before the next round of results reshapes the opportunity set. Target income potential by scanning companies described as 11 dividend fortresses and see which ones match your payout and stability preferences. Pursue value opportunities by reviewing a focused 20 high quality undiscovered gems that may not yet be crowded with attention. Prioritise financial resilience by checking the curated list of solid balance sheet and fundamentals (52 results) so you can focus on businesses with sturdier fundamentals. 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. Companies discussed in this article include EG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

It has been about a month since the last earnings report for Prudential (PRU). Shares have lost about 0.3% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Prudential due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. PRU Q2 Earnings Beat Estimates on PGIM and International StrengthPrudential Financial, Inc. reported second-quarter 2026 adjusted operating income of $4.08 per share, beating the Zacks Consensus Estimate of $3.47 by 17.6%. The bottom line increased 14% year over year. Total revenues rose 4.8% to $14.15 billion and matched the consensus estimate. Results benefited from stronger PGIM and International Businesses earnings, while assets under management increased 3.9% to $1.64 trillion. Premiums decreased 1.6% year over year to $6.33 billion. However, policy charges and fee income increased 6.4% to $1.14 billion. Net investment income rose 12% year over year to $5.15 billion, while asset management fees, commissions and other income increased 9.2% year over year to $1.54 billion. These gains helped adjusted operating income before taxes increase 9.7% year over year to $1.83 billion. PGIM revenues increased 6.1% year over year to $1.11 billion. Adjusted operating income surged 28.4% year over year to $294 million, reflecting higher asset management fees driven by equity market appreciation and strong investment performance. The metric beat the Zacks Consensus Estimate by 12.6%. The segment also benefited from higher net service, distribution and other revenues. These gains were partially offset by the impact of net outflows and higher interest rates. PGIM assets under management increased 4% to $1.49 trillion, primarily driven by equity market appreciation and strong investment performance. Total net inflows were $1.6 billion, as third-party inflows of $4.6 billion more than offset affiliated outflows of $3 billion. U.S. Businesses generated adjusted operating income of $957 million, up from $955 million a year ago. A favorable impact from the annual assumption update offset higher expenses and less favorable underwriting.Retirement adjusted operating income declined slightly to $392 million from $397 million. Higher expenses and unfavorable mortality and run-off experience in the pension risk transfer block outweighed improved net investment spread results. Retirement account values increased 4.2% year over year to $362.73 billion. Quarterly sales totaled $6.8 billion, including $3.6 billion of retail annuity sales, supported by demand for registered index-linked annuity products. Group Insurance adjusted operating income increased 24% year over year to a record $155 million. The metric beat the Zacks Consensus Estimate by 31.4%. The increase reflected a favorable assumption update, better life underwriting from favorable mortality and higher spread income, partly offset by growth-related expenses.Year-to-date Group Insurance sales climbed 25.6% to $599 million. Growth was driven by disability products, including supplemental health offerings and continued momentum in the Premier middle-market segment.Individual Life adjusted operating income more than doubled to $176 million from $82 million. The metric beat the Zacks Consensus Estimate by 12.1%. More favorable assumption updates, improved underwriting and higher spread income supported the increase.Second-quarter Individual Life sales rose 9.2% year over year to a record $237 million, primarily due to sustained demand for variable accumulation products. U.S. Legacy Products adjusted operating income declined 33.3% year over year to $234 million. The metric missed the Zacks Consensus Estimate by 6.4%. The decrease reflected a less favorable assumption update, weaker guaranteed universal life underwriting and lower fee income from the continued run-off of traditional variable annuities. Legacy annuity account values decreased 7.1% year over year to $76.09 billion. Net outflows from the run-off block more than offset the benefit of market appreciation.Total benefits and expenses increased 4.1% year over year to $12.33 billion. Operating expenses rose 6.1% year over year to $1.73 billion, while interest credited to policyholders’ account balances increased 21.6% year over year to $1.38 billion. International Businesses adjusted operating income increased 12.4% year over year to $855 million. Results benefited from higher spread income, a favorable assumption update, increased joint venture earnings and continued business growth in Brazil. The metric beat the Zacks Consensus Estimate by 20.8%. These gains were partly offset by higher expenses and less favorable underwriting linked to Prudential of Japan’s voluntary sales suspension. Constant-dollar sales fell 32.5% year over year to $361 million, primarily due to the suspension.Corporate and Other recorded an adjusted operating loss of $279 million compared with the year-ago loss of $280 million. Prudential Financial now expects the segment’s full-year 2026 loss to total $1.55 billion. Parent company highly liquid assets totaled $4.2 billion, exceeding the company’s target of more than $3 billion. Total assets increased 3.2% year over year to $783.55 billion. Adjusted book value per share increased 4.7% year over year to $100.91. Adjusted operating return on equity expanded 150 basis points to 16.4%. Prudential Financial returned $743 million to shareholders during the quarter, including $250 million through share repurchases and $493 million in dividends. The quarterly dividend was $1.40 per share. It turns out, estimates revision have trended upward during the past month. Currently, Prudential has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock has a grade of A on the value side, putting it in the top 20% for value investors. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Prudential has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Prudential is part of the Zacks Insurance - Multi line industry. Over the past month, Everest Group (EG), a stock from the same industry, has gained 1.3%. The company reported its results for the quarter ended June 2026 more than a month ago. Everest Group reported revenues of $3.96 billion in the last reported quarter, representing a year-over-year change of -11.8%. EPS of $14.85 for the same period compares with $17.36 a year ago. For the current quarter, Everest Group is expected to post earnings of $8.58 per share, indicating a change of +13.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -4.7% over the last 30 days. Everest Group has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Prudential Financial, Inc. (PRU) : Free Stock Analysis Report Everest Group, Ltd. (EG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the reinsurance industry, including Everest Group (NYSE:EG) and its peers. This is a cyclical industry, and the sector benefits when there is 'hard market', characterized by strong premium rate increases that outpace loss and cost inflation, resulting in robust underwriting margins. The opposite is true in a 'soft market'. Interest rates also matter, as they determine the yields earned on fixed-income portfolios. The primary headwind remains the immense and concentrated exposure to large-scale catastrophe losses, as the growing impact of climate change challenges traditional risk models and creates significant earnings volatility. Additionally, they face the risk of adverse prior-year reserve development, where claims prove more costly than anticipated, while the eventual influx of new capital from alternative sources threatens to soften the market and compress future returns. The 6 reinsurance stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 3.8%. While some reinsurance stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2% since the latest earnings results. Rebranded from Everest Re in 2023 to reflect its evolution beyond just reinsurance, Everest Group (NYSE:EG) underwrites property and casualty reinsurance and insurance worldwide, serving insurance companies, corporations, and other clients across six continents. Everest Group reported revenues of $3.96 billion, down 11.8% year on year. This print fell short of analysts’ expectations by 1.8%. Overall, it was a softer quarter for the company with a significant miss of analysts’ net premiums earned and book value per share estimates. The market seems disappointed with the results as the stock is down 3.9% since reporting and currently trades at $378.61. Read our full report on Everest Group here, it’s free. Founded in 2013 and operating through three distinct underwriting platforms across four countries, Hamilton Insurance Group (NYSE:HG) operates global specialty insurance and reinsurance platforms across Lloyd's, Ireland, Bermuda, and the United States. Hamilton Insurance Group reported revenues of $839.6 million, up 13.3% year on year, outperforming analysts’ expectations by 19.9%. The business had an incredible quarter with a beat of analysts’ EPS estimates. Hamilton Insurance Group delivered the biggest analyst estimate beat of the whole group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 1.4% since reporting. It currently trades at $35.06. Is now the time to buy Hamilton Insurance Group? Access our full analysis of the earnings results here, it’s free. Founded in the aftermath of the 9/11 attacks when insurance capacity was scarce, AXIS Capital Holdings Limited (NYSE:AXS) is a global specialty insurer and reinsurer that provides coverage for complex risks across property, liability, professional lines, cyber, and other specialty markets. AXIS Capital reported revenues of $1.71 billion, up 7.3% year on year, falling short of analysts’ expectations by 3.6%. It was a disappointing quarter as it posted a significant miss of analysts’ net premiums earned and EPS estimates. AXIS Capital delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 16.3% since the results and currently trades at $99.79. Read our full analysis of AXIS Capital’s results here. Founded in Bermuda in 2014 and designed to adapt nimbly to evolving market conditions, Pelagos Insurance (NYSE:PLGO) is a global specialty insurance and reinsurance company focused on creating value through strategic capital allocation, expert risk selection and a network of long-term underwriting partnerships. Pelagos Insurance reported revenues of $650 million, up 10.3% year on year. This number topped analysts’ expectations by 1.6%. Taking a step back, it was a softer quarter as it recorded a significant miss of analysts’ EPS estimates and a miss of analysts’ net premiums earned estimates. The stock is up 1.7% since reporting and currently trades at $24.73. Read our full, actionable report on Pelagos Insurance here, it’s free. Born in Bermuda after the devastating Hurricane Andrew created a crisis in the catastrophe insurance market, RenaissanceRe (NYSE:RNR) provides property, casualty, and specialty reinsurance and insurance solutions to customers worldwide, primarily through intermediaries. RenaissanceRe reported revenues of $2.77 billion, down 13.7% year on year. This result beat analysts’ expectations by 3.7%. It was a very strong quarter as it also produced a beat of analysts’ EPS estimates. RenaissanceRe had the slowest revenue growth among its peers. The stock is up 3.1% since reporting and currently trades at $329.71. Read our full, actionable report on RenaissanceRe here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

RenaissanceRe Holdings Ltd. RNR is benefiting from the growing use of insurance-linked securities (ILS), which is creating opportunities to expand its fee-based income. This could help offset some pressure from moderating reinsurance pricing. ILS allows investors to provide capital for insurance risks, particularly catastrophe risks. As more alternative capital enters the market, insurers have greater access to reinsurance capacity. AM Best reported that 144A property-catastrophe bond issuance reached a record $17.3 billion in the first half of 2026. At mid-year renewals, reinsurance supply exceeded demand by more than 25%, contributing to a further decline in reinsurance pricing. While softer pricing can pressure reinsurance premium growth and margins, RNR can benefit from the same trend through its Capital Partners business. This enables the company to participate in the growing ILS market while generating management and performance fees from third-party capital. RNR's fee income increased to $177.2 million in the first half of 2026 from $125.4 million a year earlier, supported by higher performance fees. This growing fee-based income provides an additional earnings stream beyond traditional underwriting. The Capital Partners platform, therefore, provides earnings diversification as alternative capital expands. While rising ILS capacity can pressure traditional reinsurance pricing, RNR's ability to manage that capital and generate fee income from it provides an important offset. Overall, RNR's ability to manage third-party capital allows it to benefit from ILS growth, supporting fee-based income and earnings diversification. Everest Group Ltd. EG is expanding its third-party capital platform through Mt. Logan Capital Management. Its third-party capital reached approximately $3.4 billion as of July 1, 2026, up 89% from the beginning of 2025, helped by the launch of its $600 million Annapurna Re casualty sidecar. Everest expects the platform to provide additional capital flexibility, support growth and generate fee income. Arch Capital Group Ltd. ACGL has also been expanding its third-party capital business, which it has operated since 2006. Its ILS platform mainly invests in property-catastrophe reinsurance risks. This allows Arch to use outside investor capital to expand its reinsurance capacity without relying entirely on its own capital. Shares of RNR have gained 36.1% in the past year compared with the industry’s growth of 1.6%. Image Source: Zacks Investment Research RNR’s shares are trading at a discount compared with the industry. Its trailing 12-month price-to-book value of 1.24X is lower than the industry average of 1.43X Image Source: Zacks Investment Research The Zacks Consensus Estimate for RNR’s 2026 earnings per share (EPS) is pinned at $42.40, indicating a year-over-year decrease of 8.4%. The consensus estimate for revenues is pegged at $10.35 billion, implying a year-over-year decrease of 10.8%. The consensus estimate for 2027 EPS and revenues indicates a decrease of 4% and 1.4%, respectively, from the corresponding 2026 estimates. The Zacks Consensus Estimate for 2026 earnings has moved north 1.1%, while the metric for 2027 has moved south 0.2%, in the past 30 days. Image Source: Zacks Investment Research RNR stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RenaissanceRe Holdings Ltd. (RNR) : Free Stock Analysis Report Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report Everest Group, Ltd. (EG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for Everest Group (EG). Shares have added about 0.6% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Everest Group due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Everest Group, Ltd. before we dive into how investors and analysts have reacted as of late. Everest Group Q2 Earnings Beat Estimates on Lower ExpensesEverest Group reported second-quarter 2026 operating earnings of $14.85 per share, which beat the Zacks Consensus Estimate by 1.8%. The bottom line declined 14.5% year over year. Strong underwriting income from its core businesses supported the earnings beat.Operating revenues of $3.96 billion decreased 11.8% year over year and missed the consensus estimate by 3.1%.EG's Q2 Operating UpdateGross written premiums declined 19.4% year over year to $3.77 billion. Our estimate was $3.8 billion. The decrease reflected the continued runoff of the Legacy business and targeted reductions in selected Reinsurance Treaty lines. Net premiums earned fell 12.6% to $3.49 billion, reflecting lower business volumes. Our estimate was $3.6 billion.Total claims and expenses fell 10.8% year over year to $3.28 billion. Our estimate was $3.4 billion. Incurred losses and loss-adjustment expenses declined 12.2%, while commission, brokerage, taxes and fees decreased 7.5%. Other underwriting expenses fell 11.4%.Everest's Core Underwriting ResultsCore gross written premiums decreased 5.9% year over year to $3.68 billion. On a comparable basis, excluding foreign-exchange movements and catastrophe reinstatement premiums, the decline was 7.1%. Growth in specialty lines was offset by lower property premiums and targeted reductions in U.S. casualty business.Core underwriting income totaled $317 million and declined 29.2% year over year. The combined ratio deteriorated 300 basis points to 90%, reflecting higher catastrophe losses and underwriting expenses. The attritional combined ratio, which excludes catastrophes and prior-year reserve development, increased 170 basis points to 87.3%.EG's Reinsurance Treaty PerformanceReinsurance Treaty gross written premiums declined 7.8% year over year to $2.72 billion. Our estimate was $2.6 billion. On a comparable basis, premiums fell 9.1%, led by reductions in Casualty XOL, Casualty Pro-Rata and property excess-of-loss business. Growth in Property Pro-Rata partly offset the decline.The segment generated underwriting income of $283 million, which declined 31.5% year over year. Our estimate was $271.21 million. Its combined ratio increased 360 basis points to 88.5%, while the attritional combined ratio rose 220 basis points to 85.4%. Excluding elevated non-catastrophe weather losses, the attritional combined ratio would have been 82.7%.Everest's Specialty Business TrendsGlobal Wholesale & Specialty gross written premiums were nearly unchanged at $958 million. Our estimate was $911.3 million. On a comparable basis, premiums declined 1%. Lower Workers’ Compensation and Specialty Casualty premiums were largely offset by growth in Other Specialty, Professional Liability and Accident and Health.The segment recorded underwriting income of $34 million, which declined 2.9% year over year. Our estimate was $41.3 million. The combined ratio remained unchanged at 95.2%, while the attritional combined ratio improved 110 basis points to 93.8%. The attritional loss ratio improved 390 basis points, benefiting from changes in portfolio mix and underwriting actions.EG's Investment and Expense PictureNet investment income declined 1.7% year over year to $523 million because of lower alternative investment returns. Our estimate was $561.5 million. The annualized return on invested assets was 4.5% compared with 4.8% in the prior-year quarter.Total investments and cash totaled $44.86 billion as of June 30, 2026, up 1.3% year over year. The fixed-maturity portfolio’s book yield was 4.5%. New money yields continued to exceed the portfolio yield, supporting future investment income generation.Everest's Financial Position and Capital ReturnEverest reported net income of $559 million, or $14.22 per share, compared with $680 million, or $16.10 per share, a year earlier. Annualized net operating return on equity was 14.9%, which contracted 470 basis points year over year, while annualized total shareholder return was 16.8%, which expanded 200 basis points year over year.The company repurchased $395 million of shares during the quarter and paid $78 million in dividends. Book value per share increased to $398.83, up 5% from 2025-end. Cash flow from operations was $291 million, which declined 73% from the year-ago quarter. It turns out, fresh estimates have trended downward during the past month. The consensus estimate has shifted -6.9% due to these changes. At this time, Everest Group has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock has a score of A on the value side, putting it in the top 20% for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Everest Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Everest Group, Ltd. (EG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, July 30, 2026 at 8:00 a.m. ET Senior Vice President, Head of Investor Relations - Matthew Rohrmann President and Chief Executive Officer - James Williamson Executive Vice President and Chief Financial Officer - Elias Habayeb Operator: Good day, and welcome to the Everest Group Limited Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note that today's event is being recorded. I would now like to turn the conference over to Matt Rohrmann, Senior Vice President, Head of Investor Relations. Please go ahead. Matthew Rohrmann: Thank you, Chris. Good morning, everyone, and welcome to Everest Group Limited Second Quarter of 2026 Earnings Conference Call. The Everest executives leading today's call are Jim Williamson, President and CEO; and Elias Habayeb, Executive Vice President and CFO. We are also joined by other members of the Everest management team. Before we begin, I will preface the comments by noting that today's call will include forward-looking statements. Actual results may differ materially, and we undertake no obligation to publicly update forward-looking statements. Please note that forward-looking statements include estimates, projections and forecasts of future results and are subject to the risks, uncertainties and assumptions noted in Everest's SEC filings. Management will also be referring to certain non-GAAP financial measures. Available explanations and reconciliations to GAAP can be found in the earnings release, investor presentation and financial supplement on our Investor Relations website. With that, I'll turn the call over to Jim. James Williamson: Thank you, Matt. Good morning, everyone. Everest posted another strong quarter with significant earnings and capital generation. Meaningful contributions from underwriting and investment income produced operating income of $585 million. Annualized after-tax net operating ROE was 14.9%. Annualized total shareholder return was 16.8%. And we grew book value per share, excluding unrealized gains and losses, by 12% year-over-year. The results in this quarter further show the strength of the more focused Everest we have built. The benefits of the actions we are taking to improve portfolio quality, strengthen underwriting performance and allocate capital to the most attractive opportunities available to us are emerging in our numbers. Our strategy is built around developing our core businesses while managing the cycle with relentless discipline. We are upgrading critical capabilities, optimizing the balance sheet and accelerating the return of capital to shareholders. This quarter's results are further proof that the execution of this strategy is working. Our core businesses, Treaty Reinsurance and Global Wholesale and Specialty generated underwriting income of $317 million on a combined ratio of 90%. As I have said before, we continue to focus on underwriting discipline and rate adequacy while prioritizing bottom line results over top line production, especially in this environment. Our core businesses delivered $3.7 billion in gross written premium, a modest year-over-year decline driven by deliberate underwriting choices. Our reinsurance treaty team delivered another excellent quarter, leveraging the depth and breadth of our platform as competitive advantages to effectively navigate a softening property market. Our disciplined focus on profitability delivered a combined ratio of 88.5% and underwriting income of $283 million. As we decisively manage the cycle, we have continued to decrease our exposure to U.S. casualty lines and selectively reduce business where pricing or structure did not meet our return thresholds. This resulted in approximately a 9% decrease in gross written premium year-over-year on a constant dollar basis and excluding reinstatement premiums. Casualty lines were down by 19%, while property premiums were relatively flat as growth in property pro rata was offset by decreases in our cat book. We continued our targeted expansion in specialty lines globally, where risk-adjusted returns remain attractive. Our strategy of building deep underwriting capabilities in specific segments allows us to capture emerging opportunities like data centers as well as new markets within construction and renewable energy. In each of the 2026 renewals, the Everest team has been able to maximize shares on the most attractive deals while reducing or exiting programs below our return thresholds. This is only possible because of the strength of our global underwriting platform and our well-honed distribution management capabilities. While property pricing in the market was down in the range of 15% to 20% at both 6/1 and 7/1, pricing on our property cat portfolio between both renewal periods finished down approximately 10%. Despite rate pressure, terms and conditions are largely holding and attachment points remain relatively stable. Looking ahead to the 1/1/27 renewals, we expect market conditions to remain competitive, absent large cat losses or other external shocks. Our third-party capital platform, Mount Logan Capital Management, has approximately $3.4 billion of AUM as of July 1, up 89% from the beginning of 2025. A major contributor to this growth is the launch of our Casualty and Specialty reinsurance sidecar, Annapurna Re. Annapurna provides Everest with an additional lever to facilitate opportunistic growth, generate fee income and enhance capital flexibility. This is just another example of the work we are doing to optimize our balance sheet and at the same time, enhance ROE potential over time. Turning to the Global Wholesale and Specialty segment. Results were strong. Our strategy to expand the portfolio in specialty lines and targeted international markets while delivering margin expansion continues to gain momentum. Gross written premium was roughly flat year-over-year as growth in niche specialty lines and international business was offset by deliberate reductions in U.S. property and casualty. We grew double digits internationally with broad-based growth across financial lines, marine, political violence as well as in select specialty property markets. Rate across our portfolio was flat as double-digit rate declines in property were offset by rate increases in casualty lines. More importantly, the areas of our business we are expanding continue to be rate adequate. The significant underwriting actions we have taken in recent years continue to pay dividends with both the additional attritional loss and combined ratios improving year-over-year. This is a result of the team's disciplined risk selection and portfolio management. Now a word on capital management. Since I became CEO in January of 2025, Everest has deployed $1.5 billion towards share repurchases, resulting in a reduction of over 10% of our shares outstanding. Share repurchases remain a top priority for capital allocation, and our commitment to disciplined capital management was again evident in this quarter's results. This speaks to our continued conviction in the strength of our balance sheet and that Everest share price does not accurately represent the true value and earnings power of the company. Our goal is simple: to grow book value per share consistently. We're doing that through disciplined underwriting and capital stewardship, and this quarter provides convincing evidence of our approach. We are not, however, declaring victory. I am seeing more signs of irresponsible underwriting in the market. The U.S. tort environment, despite some recent reforms, is corrosive to a well-functioning economy and is putting pressure on industry reserves. And the world is experiencing unprecedented levels of risk across multiple domains with little sign of that risk being reflected in insurance and reinsurance prices. But today's Everest is up to these challenges. We have a deep bench of talented people across our organization, robust and growing analytical and technology capabilities and superb relationships and distribution. Our intent is to strengthen our company no matter what part of the cycle we're facing. Let me end by welcoming Elias to the team as our new CFO. Elias is a seasoned finance executive with over 30 years of experience leading several global finance organizations in the insurance and financial services industry. We're excited to have him on board. And with that, I'll turn the call over to Elias. Elias Habayeb: Thank you, Jim, and good morning, everyone. The second quarter results reflect the momentum we're creating by executing on our strategic priorities to create shareholder value. We believe the combination of delivering compounding book value per share growth driven by disciplined underwriting and prudent capital management is the best way to generate that value. Before unpacking this quarter's results, I'd like to highlight 2 changes we're making to our external reporting. First, beginning with this quarter, we will be providing consolidated financial results for what we will now refer to as our core businesses, consisting of reinsurance treaty and Global Wholesale and Specialty. These businesses represent the future of Everest. And with this additional disclosure, we're providing you with added transparency into the earnings power of the go-forward business. This excludes the legacy segment, which, as we have noted in previous quarters, will become an immaterial contributor to earnings as the portfolio runs off. Second, beginning in the third quarter, we will make some revisions to our definition of after-tax net operating income to better align our definition with industry peers. We will exclude one-time expenses as well as gains and losses associated with acquisition, divestiture and restructuring activities as well as the asymmetric accounting for the ADC. These refinements will improve transparency and period-over-period comparability of Everest's operating results. We're previewing these changes this quarter and have provided the preliminary recast of the historical results under the revised definition in the back of our financial supplement. Now turning to the second quarter group results. Everest grew book value per share, excluding unrealized gains and losses by 12% over the past year to roughly $408 and produced an after-tax net operating EPS of $14.85 by delivering an underwriting profit of approximately $300 million and net investment income of over $500 million while returning over $470 million to shareholders between share repurchases and dividends. Moving to our core businesses. We are focused on producing consistent underwriting profitability, supported by a strong balance sheet to deliver on our total shareholder return goals. The core businesses delivered strong underwriting profits in the quarter of $317 million. Gross premiums were $3.7 billion lower than the prior year quarter by approximately 7% on a comparable basis, reflecting our underwriting discipline and actions to improve the portfolio mix. The core combined ratio was 90%, inclusive of $85 million in catastrophe losses, net of estimated recoveries and reinstatement premiums, largely driven by the conflict in the Middle East and several weather-related events globally. There was no net prior year loss development. The attritional loss ratio was 57.8%, relatively consistent with the prior year. The expense ratio increased to 5.1%, reflecting the impact of lower net earned premium as well as modestly higher expenses driven in part by timing as well as investments we're making in the business to improve our competitive positioning and operating efficiency. In our Reinsurance Treaty business, we continue to capitalize on our lead market position to achieve differentiated rate and terms as we proactively improve the mix and shorten the duration of the portfolio while navigating the current market cycle. In terms of underwriting profitability, the combined ratio was 88.5%, a year-over-year increase of 360 basis points, mostly driven by higher catastrophe losses on a comparable basis. The attritional loss ratio increased 140 basis points to 57.1%, largely due to higher weather-related non-cat losses. Excluding these losses, the attritional loss ratio would have been 54.4%, a 130 basis points year-over-year improvement driven by mix and improved loss experience. Turning to Annapurna Re, our recently announced Casualty and Specialty sidecar. Annapurna Re provides Everest with additional portfolio management and financial optionality. We expect to cede roughly $200 million of premium a quarter over the next three years to Annapurna Re. We also expect the transaction to be modestly accretive to overall underwriting income and ROE over time while resulting in lower net investment income. Now moving to our Global Wholesale and Specialty business, where we are focused on improving underwriting margins as we pursue profitable growth in targeted lines and geographies. While the combined ratio was in line with the prior year quarter at 95.2%, the attritional loss ratio improved 390 basis points to 60.6% as a result of the underwriting actions we've been taking and an improving business mix. Catastrophe losses net of estimated recoveries and reinstatement premiums contributed 1.4 points to the combined ratio, while the prior year quarter's experience was de minimis. The underwriting-related expense ratio increased to 12.6%, largely driven by timing, mix and investments in the underwriting platforms. While underwriting profitability was strong this quarter, we continue to expect this business to deliver combined ratios in the mid- to high 90s in the near term. Now moving to our legacy segment. We continue to manage the transition of our commercial retail insurance business to AIG, which remains on track with roughly $250 million of net premiums left to be earned in the second half of the year. We are also focused on proactively managing the runoff book through claims optimizations and expense discipline that will unlock the capital that supports the portfolio. As expected, in the second quarter, the segment generated a modest drag on the group underwriting results. Turning to reserves. As Jim noted, I recently joined the company along with our new Group Chief Actuary, Katy Bradica. Katy and I worked together in the past, and I think very highly of her skills. I'd like to touch on our process and philosophy before providing the highlights of the quarter. On process, we followed a prudent quarterly reserving review where we responded proactively to emerging credible data even if the annual studies had not been completed. Our philosophy is to maintain management's best estimates above the actuarial central estimate and embed conservatism in our loss picks. Finally, the annual reserve studies for most of our long-tail lines, including Reinsurance Treaty business are scheduled to be completed later in the third quarter, and Katy and I will be heavily involved in that process. Now turning to the results for this quarter. We had no net development on prior year loss reserves. Short-tail lines continue to develop favorably. This was offset by the increase in the industry loss estimate on the Baltimore Bridge collapse matter as well as some strengthening in casualty, reflecting our cautious outlook. Lastly, we expect to publish our global loss triangles during this upcoming month. You will see enhanced disclosure like additional lines of business triangles and more commentary within each of our three reporting segments. Moving on to investments. We continue to maintain a high-quality and diversified investment portfolio. Net investment income was $523 million for the quarter, modestly lower year-over-year due to lower alternative investment returns. Overall, our book yield in the quarter remained stable at 4.5%, which is below our current new money yield, which is closer to 5%. Turning to capital management. Our philosophy is to deploy capital towards opportunities that maximize shareholder returns, balancing growing the franchise value of the company while providing an attractive return to our shareholders. Given current market conditions and our attractive valuation, repurchasing shares is a top allocation priority. In the second quarter, we repurchased approximately 1.2 million shares amounting to $395 million at an average share price of $342 per share. This translated into an 81% payout ratio for the quarter and an approximately 77% for the past three quarters. Looking ahead, while we continue to view share repurchases of $300 million as a quarterly floor, we expect to exceed that amount when appropriate, given the strength of our balance sheet and earnings generation. As Jim said, we have strong conviction that Everest's current share price does not reflect the true value of the company, and we have confidence in the strength of our balance sheet. And with that, I'll turn the call back over to Matt for Q&A. Matthew Rohrmann: Thanks, Elias. Chris, we are now ready to open the line for questions. [Operator Instructions]. Operator: [Operator Instructions] And today's first question comes from Alex Scott with Barclays. Taylor Scott: So I was listening to the commentary about the involvement of Elias and the new Chief Actuary and the review process. And I think when you have that kind of turnover, makes people nervous around the reserve quality. But I also heard your comments about having confidence in the strength of the balance sheet. So I just wanted to see if you could opine on what gives you the confidence to say now ahead of that review that you have confidence in the balance sheet. Elias Habayeb: Alex, it's Elias. So I've been here for a quarter, and I will tell you, I believe our balance sheet is strong. I look at the strength of the balance sheet, looking at capital adequacy, liquidity, leverage, the overall risk profile of the balance sheet. So looking at all that, I believe we've got a strong balance sheet that gives me conviction that we would be able to deliver on share repurchases in excess of $300 million going forward. In terms of the reserves, as I reflected in my commentary with Katy and I being new, we decided to react now to what we're seeing in the data and not to wait until the reserve studies are done next quarter. And that's what's reflected in our numbers this quarter. Taylor Scott: Understood. And I guess as a follow-up, could you talk about your interest and how you balance the price versus reward for looking at things like loss transfers to the reinsurance business to more fully put this part of the conversation around Everest to that? Matthew Rohrmann: [Technical Difficulty] and things like that, I just want to make sure we're clear on the question. Taylor Scott: Yes. Yes. Just thinking about potential loss transfer of ADC, sort of similar to what you've done with some of the primary legacy product. James Williamson: Sure, Alex. I would answer the question in a number of ways. One, in terms of our overall hedging strategy, you've seen us evolve that over time. We've developed our third-party capital strategy with Mount Logan, and that gives us a tremendous amount of support on a go-forward basis in our reinsurance business. That's our main method of transferring risk to third parties. We also opportunistically purchase retro, but we do that very sparingly usually in niche areas. I would cite aviation, cyber as 2 areas where we've purchased some retro. And then in terms of the back book, look, I mean, I think we're very open to strategies like what we did last year with the ADC that can enhance our capital position and help us to manage risk. And we look at those things across both businesses on an ongoing basis. If something becomes attractive, you would certainly -- you would see us willing to engage in such transactions. And there are some things that we look at from time to time. I think our focus there is really more on the legacy business and how we accelerate the realization of capital from that portfolio. That would be the area of most focus for us. Operator: And the next question comes from Gregory Peters with Raymond James. Charles Peters: I wanted to step back and go to your comments on Reinsurance Treaty, some moving pieces from the top line, and you talked about pricing on property being down. It seems like you're getting maybe some better terms than some of the horror stories we're hearing in the marketplace. But I want to go back and just have you reframe, provide a little bit more detail on what you're seeing on pricing in the various lines of business, please. James Williamson: Sure. Yes, happy to do that, Greg. And I'll start with property cat. Obviously, that's where the market gets a ton of focus. And we did see rates come down in the more recent renewals. As I indicated, we've seen market pricing move in the 15% to 20% range. We've done quite a bit better in our own portfolio. And first, let me just spend a moment on how we're able to do that. It's a combination of things. Number one, we talk about the strength of our platform. What that really translates into is we have industry-leading underwriters in all of our regions on the ground, enabled with underwriting authority who can execute deals with cedents who we have very deep relationships with. So it gives us a lot of flexibility to position our capacity at those places in the program where we see the best return opportunity. And the way that played out in the midyear renewals is we did shift around our participation on programs quite a bit. We actually moved a little bit more remote from loss, so our average attachment point increased slightly. We were very careful about which programs we decided to deploy to. In some cases, where we saw attractive rates, attractive terms and conditions, we deployed more capacity. And then in other areas, as you can imagine, we had to pull back. And that's how we achieved that 10% reduction. And my view of property cat rates at this point is they're still in such a place that it allows us to get a return, an expected return that's above sort of our threshold for continuing to write that business. And so that -- I think that makes us feel pretty good. When you look at parts of our portfolio like property pro rata, where we did grow in the quarter, One thing I would opine there, particularly against the backdrop of declining property rates, that growth was driven by very specific deals. I wouldn't envision as you're thinking about that portfolio, just general market, commercial and personal property. These tend to be more specific deals. A lot of it's in our international markets. And some of it is around whole account quota shares with very strategic partners. Some of it's growth in Latin America and Asia. So we're being very selective there. And again, while there is a declining rate, I still think very adequately priced. And then in the long-tail lines, this is an area, I think, that is going to require very careful management. Rates are up. They have been up consistently, and we're seeing that in both our businesses. But we still remain fairly conservative in our approach to that business. So it really does come down to more than just rate change. You have to have conviction in where loss trends are going, and I think there's a lot of uncertainty there. So to sort of summarize all that and to reiterate a comment I made in my prepared remarks, where we're putting capital to work, particularly in the areas, the niche specialty areas that we're growing, we have a lot of conviction that rates are at or above adequate levels, and it allows us to continue to write the business with an expectation of strong profitability. Charles Peters: And just a follow-up, Jim, because we're now in hurricane season for North America, and we're watching the moving pieces move around in Reinsurance Treaty. How should we be thinking about PMLs for hurricanes and cat activity in the second half of '26 and how it might manifest itself if it occurs with your changing exposures? James Williamson: Yes. I think a feature of the way we've managed this cycle, and you see it in our printed results is our PMLs have been coming -- our net PMLs have been coming down. Some of that is related to actions we're taking on the gross portfolio. More of it is related to the expansion of, in particular, Mount Logan. And so we are very careful about our aggregation, particularly in the Southeast, but really in all of our peril zones around the world. And I feel like our total risk profile is in a really good spot relative to the economics of the trades that we're making. So I think we're getting paid adequately. And I also think we're managing our total exposure in a way that is a little more conservative than you might have seen us be a year ago. Operator: And our next question comes from Andrew Andersen with Jefferies. Andrew Andersen: As this new casualty sidecar becomes larger, should we think about the underlying reinsurance accident year loss ratio perhaps trending a bit lower given the retained mix to a short tail? Or do you anticipate redeploying that capacity perhaps into other lines that maybe have a higher expected loss ratio, but still good attractive returns? James Williamson: Yes. Let me provide a little bit of perspective on this. And by the way, what I'm about to say, I think, applies to both of our businesses and the way we think about management of the loss picks going forward. The first thing, Andrew, to keep in mind is we're starting in a great place. And again, that applies to both businesses, meaning we've built a lot of prudence into our loss picks. We have not taken credit for much of the underwriting work that we've done in the businesses. And so we're in a position where I think unlike some folks in the market, we don't have to chase loss trend in our picks. We start from a position of strength. And then as you look at the go-forward outlook, there's really sort of 2 forces, 2 trends that we got to manage. The first is the market. And I think about that like gravity. It's going to exert pressure on all underwriting companies. And for the most part, with the exception really of U.S. casualty and some very specific specialty areas, prices are coming down. But then there's our actions. And what we do within the company, within our portfolios to defy that gravity. And I'd say what you're seeing from us is, one, really strong portfolio management activities, and that's playing out across all of our lines of business in both divisions, where we're walking away from business that is not properly priced, but we're leaning in where it is and where things are good, we're willing to grow. We've built a strategy where we're moving our mix to parts of the market where you do see strong margin and we have durable advantage, meaning we have a product differentiation. We have expert underwriters who deliver something very special into the market that our clients value. We have analytical capabilities that support that underwriting. That's going to sustain our advantage and sustain our profitability irrespective of what the market is doing. And then there are actions like Annapurna. And so yes, you might see -- obviously, that will deliver a benefit to the reinsurance division in terms of its attritional. And we'll be thoughtful about that, and it gives you an opportunity both to sustain margin as markets soften, but also build up your prudence in your loss picks. And then the last point I'd make on our business and where it's positioned is, remember, we're a highly diversified underwriter. And so we have the ability to manage the market cycle and deploy capital in markets around the world gives us a tremendous advantage. So you net all that together, I think for now, things are sort of a wash in the near term in terms of where the loss picks would be heading. And again, that comment applies to both divisions. And it's something we'll manage very carefully as the cycle unfolds. Elias Habayeb: Andrew, if I may add. So taking what Jim said, I think the way to think about at least in the near term from an attritional loss ratio for the treaty business is you should be thinking about it in the mid-50s. And on global wholesale and Specialty, it's like where we reported this quarter, I think we'd expect to be in the same neighborhood as where we were this quarter. Andrew Andersen: Great. And just with the session for the sidecar of roughly $200 million a quarter, could you maybe just provide a bit of color on how you determine what kind of casualty you see to the sidecar and what you retain on your own balance sheet? James Williamson: Yes. I mean it was -- obviously, these processes of assembling these sidecars are a negotiation. And so it's really about aligning the appetite of Everest to seed business and the appetite of our capital partners to provide the capacity. Like the rest of what we do in Mount Logan, though, a key theme of our strategies around third-party capital management is alignment of interest, meaning we're not cherry-picking deals to go into the sidecar. These are quota share structures that take a predefined sliver of everything we write. So our experience is the same experience as our capital providers will receive and vice versa. And we think that's the most sustainable and aligned way to build these structures. Operator: And the next question is from Meyer Shields with Keefe, Bruyette, & Woods. Meyer Shields: Elias, I was hoping you can give a little bit more color. When you talk about reacting to casualty reserves in the second quarter results, which segment is that, which accident years? And maybe -- what is the reaction to? Elias Habayeb: Meyer, it's Elias. Yes, happy to. But let me first go back to a couple of comments I made in my opening comments. Like the process we went through this quarter, I believe we went through a pretty prudent process. And we decided to react to data we're seeing today. We were not going to wait until the third quarter for the reserve studies to be done. If I unpack reserves for the quarter, there's 3 things that we tackled this quarter. One, on the short-tail lines, continue to develop very favorably. We did recognize some favorability on the more mature year, but we're still sitting on a pretty meaningful margin there. Second, we did increase our reserves for the Baltimore Bridge matter, and we increased it by about $55 million. So that brings us to the industry loss estimate of about $2.8 billion to $3 billion. And third to where you were asking about, Meyer, around casualty, the two data points we saw and that we decided to react to is, one, loss trends continue to be elevated. Now they're still relatively stable since the last reserve studies, but they continue to be elevated in part reflecting the environment that Jim mentioned during his opening comments. The second thing is we continue to see loss emergence in the older accident years, and we decided to react not just to the accident years where the loss emergence is coming in higher than expectations, but we decided to reflect it across most accident years to try to keep ahead of it. Now what we did not factor in or react to this quarter in the data is any underwriting action we've taken that hasn't yet shown up in our numbers. Any of the tort reform, we've not given any credit to. And at the same time, we know that in our insurance book, we have a claims acceleration. We hear from our cedents, some of them that there's claims acceleration in their book. That wasn't reflected in anything we've done this quarter. So the takeaway this quarter, that's what we really reacted to. The bulk of it was in the North America casualty book on the treaty side. And we feel like we reacted to what we know now the reserve studies are ongoing and will be done next quarter. Meyer Shields: Okay. That's very helpful. Is there -- a second question, is there a way of maybe ballparking the impact of the Middle East conflict on premium volumes? James Williamson: Yes. Look, I think overall, it is actually on the Global Wholesale and Specialty side, creating opportunities insofar as you are seeing a reaction in terms of rates, particularly around areas like political violence and marine, and we see that as an opportunity. We are obviously an active underwriter in the region. We've taken a very conservative approach during the conflict. But I think on balance, Meyer, I would view it as a potential opportunity more than anything else. Operator: The next question is from Michael Zaremski with BMO Capital Markets. Michael Zaremski: Maybe just -- I know I've asked this in the past, just we get asked a lot by investors. Just on the catastrophe load guidance, some of your peers are talking about kind of towards the higher end of the range, given kind of where pricing is going and kind of keeping limits flat or higher. Any change in the cat load guidance? I'm not sure if some of the retro or Annapurna flows into cat at all. Elias Habayeb: Mike, it's Elias. No, Annapurna is on the Casualty and Specialty side. The guidance I give you from a cat loading is roughly 8 points on the treaty side and roughly about 4 points on Global Wholesale and Specialty. Michael Zaremski: And maybe moving to an attritional loss ratio question on the Wholesale and Specialty. Great to see 4 point of improvement, also kind of heard some of your guidance or thought process comments. But is there -- just so we understand the improvement, is there a bridge you can kind of talk about that caused the improvement? Is it all mix of business? Or are other things going on that are -- you'd like to make us aware of? Elias Habayeb: Yes, Mike, it's Elias again. I would say a couple of things driving. One is mix. The other one is improved loss experience. Now even with the improvement of about 350, 400 basis points year-on-year, we did not change our prudence on the long-tail lines. We're maintaining our prudence on the long-tail line. It's really mix and improved loss experience on the other businesses that's playing out. Michael Zaremski: Got it. In terms of the enhanced disclosure, it would be great if you all could provide kind of disclosure that looks a little bit more like the statutory disclosure where we can kind of see the prudence via the kind of the IBNR levels by business line and vintage, just a comment. Matthew Rohrmann: And Mike, you're referencing the GLTs, I assume, which we've certainly taken that into account. Operator: And the next question comes from Brian Meredith with UBS. Brian Meredith: Jim, I'm just curious, given the continued move here to more property business in your reinsurance, should we be expecting more of this volatility in excess non-cat weather kind of like you reported and called out this quarter in your results, and below normal also. James Williamson: Yes, I wouldn't necessarily say that you should expect more volatility there because a couple of things. One, we have a long track record in the products that drove the loss in this particular quarter. They perform extremely well. You do, from time to time, get these pops. But if you look at our overall exposure to non-cat weather and in particular, areas like severe convective storm, we've managed that down over time. And so I think you sort of net those things together, and I'd say that I really view this quarter's loss as kind of an anomalous loss, not that it couldn't recur, but it shouldn't raise an expectation that we're going to see more of that going forward. Brian Meredith: Makes sense. And Jim, just curious your thoughts. You obviously have a new alternative capital facility. It's great. We're seeing a lot of this kind of in the industry. What do you think the impact has been in the reinsurance marketplace, call it, midyear renewals and as we look into 2027 from this increased capital coming into the industry from an alternative capital. I know I just remember back prior to 2020 and how this alternative capital really depressed returns, at least in the property side of the business. And now we've got this new kind of casualty part coming in. James Williamson: Yes, it's a fair question. I mean I think one piece of context, Brian, that's always important to keep in mind is if you zoom out and you look at the total capitalization of the industry and the part that's played by third-party capital, it's still relatively within range of where it's been over the last few years. Yes, it's increasing, but really on the margins. And so that would be one point. I think a lot of the experience we're having right now in terms of price trajectory is just the fact that people have made a fair bit of money in a variety of markets in reinsurance over the last few years. Underwriters have done well, and they're looking to put that -- the capital they've created through that process to work. And so you're seeing increased competition. My hope is that people have learned from the last time that third-party capital really leaned into reinsurance. And I do think that's a fair hope to have. I think we're seeing a lot of increased sophistication from third-party capital providers. Certainly, we work only with partners who fully understand the risk that we're taking. And as I said earlier, we try to create tremendous alignment with our capital providers in that way. So I guess my view, if I were to summarize it is, yes, it's going to apply some marginal competitive pressure because supply of capital goes up. It's a supply and demand equation. But I think it's happening against the backdrop of a fair bit of discipline. And so I don't expect a major dislocation at this point. Operator: Our next question is from David Motemaden with Evercore ISI. David Motemaden: Elias, you had sized the Baltimore Bridge impact on the reserves. I was wondering if you could also just let us know what the reserve increase was in dollar terms on the casualty side. And is that something it was only a slice of the book where you reacted to information? Is that something that we should extrapolate? Any sort of color there would be helpful. Elias Habayeb: David, it's Elias. Yes. So on the North America casualty side, where the bulk of where the strengthening we took, it was rough -- just under $200 million. So if you think about the total reserves, that was a small percent of the total reserves. The second thing I would say is while the loss emergence was in the older accident years, we decided to kind of reflect it across most accident years. So it's really spread across because we kind of reflected what we saw in the older accident years across most accident years. And this is really in the North America casualty book where we took the adjustment. David Motemaden: Got it. I don't know if someone else is chiming in there. But on the -- just also -- just in response to that, was there any change to the loss pick on the casualty side? And maybe just as a gut check, within the mid-50s attritional loss ratio within reinsurance that you were talking about, is -- what -- where are you picking casualty within that? Elias Habayeb: So going through the data at this point, we decided there's no need to make any adjustments to the casualty 2026 loss picks. We feel they're prudent. And so given we reacted to what we know right now, but we're going through the reserve study, which will be done later in the third quarter. Operator: And the next question comes from Matthew Heimermann with Citi. Matthew Heimermann: I think most of my questions have been answered, but just curious if with the change in the portfolio, we should expect any lag changes -- excuse me, with any changes in the underwriting portfolio and the mix, if we should expect a natural shortening of the duration on the investment portfolio side just as we contemplate reinvestment rates and the like. Elias Habayeb: And Matthew, I think you're asking about the investment portfolio. And our investment strategy is liability driven. And so we will align the duration of the asset side to what we see happening on the liability side. And right now, the duration on the asset side is about 3.5 years, and we try to maintain that duration, the ALM duration is pretty tight between the two. Operator: And our next question is from Elyse Greenspan with Wells Fargo. Elyse Greenspan: My first question, I guess, is going back to the capital discussion. Elias, I think you said right that there's going to be some capital freeing up from the legacy book. So can you just remind us of the numbers there? And then could that be additive to that $300 million floor when we think about capital return in the back half? Elias Habayeb: Elyse, it's Elias. Yes, happy to answer your question. So we've got over $1 billion of capital sitting behind legacy. That amount will free up over time as the reserves in legacy come down. And from a capital management perspective, we look at our distributable capital in total. Most of our capital will come through the earnings of the company. The company has really strong earnings generation. And then any capital that gets freed up through legacy runoff or other means gets factored. And listen, we believe, given the strength of the balance sheet, the strength of the earnings generation of the company, we have the capacity to buy more than $300 million per quarter when appropriate. And that's what gives us the conviction that we expect to come in to be buying more than $300 million a quarter. You saw the first quarter at $330 million. The second quarter, we're at almost $400 million. So I quoted in my opening comments an 81% payout ratio for the quarter and just shy of 80% for the last three quarters. So you could see kind of the acceleration and the commitment on our end to deliver an attractive return by buying back more shares. And as we look forward, we expect to maintain that same discipline going forward. Elyse Greenspan: And then my follow-up, I wanted to go back to just, I guess, some of the commentary you said on the casualty book. It sounds like, right, that $200 million reserve increase was right on the North America casualty reinsurance side. So can you just -- and you -- I think you said in response to another question, you guys didn't move current year loss trend assumptions this quarter. Can you give us a sense of where the current casualty loss trends are today just to give extra comfort why you were moving prior years and obviously see the strength in the current accident year? Elias Habayeb: Yes, happy to, Elyse. And our loss trends on casualty have been relatively stable since the last reserve study. And it varies by line within casualty between high single digits to low double digits is where our loss trends are. And that's not inconsistent with what I think we've been seeing from some of our other peers report. Operator: And the next question is from Tracy Benguigui with Wolfe Research. Tracy Benguigui: Welcome, Elias. A follow-up on Annapurna Re. The $200 million of premiums you plan to cede per quarter, I appreciate there's no cherry picking. The mechanism is a quota share. But I'm curious, is the idea, let's say, for example, rather than cut casualty XOL by a quarter, why not get that to Annapurna through a quota share? Or should we actually expect more casualty reinsurance reduction on a net basis going forward? James Williamson: Yes. Tracy, listen, the way we think about it, first of all, and this is a crucial statement that I want to make sure we're all aligned around is -- we start with gross underwriting. And so we're not going to put business on the books unless we're confident that we understand it, we've underwritten it, we can predict its performance over time, and we feel good about it. And so that's where it begins. And certainly, over time, you've seen us withdraw from a number of casualty deals and a fair bit of business over $1 billion over the last few quarters as a result of that gross underwriting discipline. We've now agreed to seed a portion of that business to this vehicle on a quota share basis, as I mentioned. And so what does that mean for our net? Well, I would say in the immediate term, it means our net retention of casualty will go down. We're not going to stretch to go find more gross as a result of this transaction. And at the same -- and then what I would also add, obviously, it helps us to move the mix, helps to provide some capital flexibility. So a lot of benefits enduring to us through that transaction. But we don't change our underwriting logic based on the availability of third-party capital. It's just not how we run the company. Tracy Benguigui: Excellent. And then going back to your midyear renewal comments that the market saw property down 15% to 20%, while Everest, it was down 10%. I'd like to better understand how you achieved better pricing. Did you change where in the tower you played? Or is the nuance a difference in terms and conditions or offering multi-peril protection, not just wind? Or is the difference where you play geographically? James Williamson: Yes. So a couple of points. One, when we talk about these numbers, these are on a risk-adjusted basis. So if we change the program and add more coverage, that would increase the risk. And so you don't get a pass when you do those sorts of things. How do we achieve it? It's a few things. One, nonconcurrent terms are a big part of it. And in particular, almost all programs that we write in Florida are on nonconcurrent basis. And so the market can be doing one thing and we may be doing something else, and that puts us at a tremendous advantage in that marketplace. And then more broadly, what I would say is our property teams, and this is true in every geography around the world, are incredibly astute at determining where they want to participate in programs. So we definitely will adjust where in the tower we sit based on the availability of margin and pricing and risk. And we saw a fair bit of shifting around of our participations, which is why I indicated in the quarter, our average attachment point on a return period basis increased, so we did not come down in the tower to achieve better or higher rates. We actually went up a little bit. And we will move then capacity across clients based on where we see risk-adjusted rates going. And so there's no question in the most recent renewals, we deployed more capacity with clients where we saw healthy risk-adjusted economics and moved capacity away from programs that weren't as well priced or structured. And all of that allows us to sort of defy the gravity of where the market is heading. Operator: And this does conclude today's question-and-answer session as well as today's conference call. Thank you for attending today's presentation, and you may now disconnect. Before you buy stock in Everest Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Everest Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Everest Group. The Motley Fool has a disclosure policy. Everest (EG) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Palomar Holdings, Inc. PLMR reported second-quarter 2026 operating income of $2.36 per share, which beat the Zacks Consensus Estimate by 11.3%. The bottom line increased 34.1% year over year. Total revenues improved 57.9% year over year to $308 million, mainly driven by higher net earned premiums and investment income. The top line beat the Zacks Consensus Estimate by 7.4%. Palomar delivered another quarter of strong premium and revenue growth, aided by robust net earned premiums and higher investment income. However, elevated losses and underwriting expenses weighed on underwriting margins, resulting in a higher combined ratio. Palomar Holdings, Inc. price-consensus-eps-surprise-chart | Palomar Holdings, Inc. Quote Gross written premiums increased 27% year over year to $630.5 million, supported by growth across Casualty, Crop and Surety & Credit lines. The figure missed our estimate of $688 million. Net earned premiums rose 59.5% year over year to $287 million, exceeding our estimate of $260 million and the Zacks Consensus Estimate of $266 million. Net investment income climbed 49.2% year over year to $20 million, driven by higher yields on invested assets and a larger average investment balance, supported by strong operating cash flow. The figure surpassed both the Zacks Consensus Estimate of $18.2 million and our estimate of $18.8 million. Palomar reported adjusted underwriting income of $67 million, marking a 38.4% increase from the prior-year level. Reported underwriting income grew 25.5% year over year to $48 million, surpassing our estimate of $17 million. Total expenses rose 70.5% year over year to $244.6 million due to higher losses and loss adjustment expenses, increased acquisition costs, elevated underwriting expenses and higher interest expense. The figure was lower than our estimate of $248.9 million. The loss ratio was 34.5%, deteriorating 880 basis points year over year. It was lower than our estimate of 37.8% and the Zacks Consensus Estimate of 35.5%. The adjusted combined ratio worsened 360 basis points year over year to 76.7%, but was better than the Zacks Consensus Estimate of 78.4%. Cash and cash equivalents declined 41.3% to $62.7 million from the 2025-end level. Shareholders’ equity increased 4.1% to $980.9 million from the 2025-end level. Annualized adjusted return on equity for the second quarter of 2026 was 26.3%, up 260 basis points year over year. During the second quarter, the company repurchased 0.37 million shares for $41 million. On July 30, 2026, Palomar's board declared its first quarterly cash dividend of 45 cents per share. The dividend is payable on Sept. 2, 2026, to shareholders of record as of Aug. 19, 2026. The company expects 2026 adjusted net income in the range of $270-$280 million, including estimated catastrophe losses of $8-$12 million. PLMR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Markel Group Inc. MKL reported second-quarter 2026 adjusted operating income of $19.5 per share, which missed the Zacks Consensus Estimate by 10.4%. The bottom line deteriorated 25% year over year. Total operating revenues were $4 billion, up 0.1% year over year, surpassing the Zacks Consensus Estimate by 8.6%. Earned premiums decreased 3% year over year to $2 billion in the second quarter. The figure was lower than the Zacks Consensus Estimate of $2.1 billion. Net investment income increased 11.4% year over year to $256.1 million in the second quarter, lower than the Zacks Consensus Estimate of $262 million. Cincinnati Financial Corporation CINF reported second-quarter 2026 operating income of $1.43 per share, which missed the Zacks Consensus Estimate by 21.4%. The bottom line declined 27.4% from the year-ago quarter. Total operating revenues for the second quarter were $3 billion, up 6.8% year over year. The figure, however, missed the Zacks Consensus Estimate by 1.4%. Earned premiums climbed 6.3% year over year to $2.6 billion. The figure marginally missed the Zacks Consensus Estimate by 1.5%. Net investment income, net of expenses, increased 12% year over year to $319 million. The figure marginally beat the Zacks Consensus Estimate by 1.8%. Everest Group, Ltd. EG reported second-quarter 2026 operating earnings of $14.85 per share, which beat the Zacks Consensus Estimate by 1.8%. The bottom line declined 14.5% year over year. Operating revenues of $3.96 billion decreased 11.8% year over year and missed the consensus estimate by 2.9%. Net premiums earned fell 12.6% to $3.49 billion, reflecting lower business volumes. Our estimate was $3.6 billion. Net investment income declined 1.7% year over year to $523 million due to lower alternative investment returns. Our estimate was $561.5 million. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Palomar Holdings, Inc. (PLMR) : Free Stock Analysis Report Cincinnati Financial Corporation (CINF) : Free Stock Analysis Report Markel Group Inc. (MKL) : Free Stock Analysis Report Everest Group, Ltd. (EG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Assurant, Inc. AIZ reported second-quarter 2026 adjusted earnings of $6.41 per share, which beat the Zacks Consensus Estimate of $5.16 by 24.2%. The bottom line increased 25.7% year over year.Revenues rose 9.4% to $3.46 billion and surpassed the consensus estimate of $3.40 billion by 1.8%. Results benefited from strong Global Lifestyle and Global Housing earnings, lower catastrophe losses and growth in segment net earned premiums, fees and other income. Assurant, Inc. price-consensus-eps-surprise-chart | Assurant, Inc. Quote Net earned premiums increased 6.9% year over year to $2.77 billion. The figure was higher than our estimate of $2.71 billion. Fees and other income climbed 19.6% year over year to $554.6 million, reflecting continued expansion across the company’s protection and service programs. The figure was higher than our estimate of $500.3 million.Net investment income advanced 10.6% year over year to $142.4 million. The figure was lower than our estimate of $153.1 million. Total segment net earned premiums, fees and other income grew 8.9% to $3.32 billion, supported by gains in both operating segments. Global Lifestyle revenues increased 9.5% year over year to $2.67 billion. The figure was higher than our estimate of $2.61 billion. Net earned premiums, fees and other income rose 9.4% year over year to $2.57 billion, primarily due to higher global supply-chain volumes, device protection programs, extended service contracts and financial services contributions. The figure was higher than our estimate of $2 billion.Adjusted EBITDA increased 21.4% year over year to $244.4 million. The figure was higher than our estimate of $196.2 million. Connected Living adjusted EBITDA surged 29.3% year over year to $170.4 million, including $10 million of favorable non-run-rate benefits. Excluding those benefits, earnings rose 22%, driven by global mobile growth and financial services.Global Automotive adjusted EBITDA increased 6.3% year over year to $74 million, aided by growth within global partnerships. The number of protected mobile devices rose 6.2% to 69 million, while serviced devices increased 32.1% to 7.4 million. Global Housing revenues increased 7% year over year to $783.4 million. The figure was higher than our estimate of $748.1 million. Net earned premiums, fees and other income advanced 7.2% year over year to $747.8 million, primarily reflecting Homeowners growth in specialty products and lender-placed insurance, along with lower catastrophe reinsurance costs. The figure was higher than our estimate of $709.3 million.Adjusted EBITDA rose 28.2% year over year to $274.8 million. The figure was higher than our estimate of $217.4 million. Excluding reportable catastrophes, adjusted EBITDA increased 17.5% to $287 million, mainly due to favorable non-catastrophe loss experience and lower-than-typical claims frequency.Reportable catastrophe losses declined to $12.2 million from $29.8 million. The Global Housing combined ratio improved 560 basis points year over year to 69.8%, while the loss ratio decreased 620 basis points year over year to 33.6%. Results were partly offset by $12 million of lower favorable prior-period reserve development. Total benefits, losses and expenses increased 7.2% year over year to $3.08 billion. The figure was higher than our estimate of $3 billion. Cost of sales jumped 30.8% to $302.6 million, while general expenses increased 10.2% to $668.8 million.Corporate and Other recorded an adjusted EBITDA loss of $40 million, wider than the year-ago loss of $29.8 million. The deterioration reflected higher employee-related expenses and organic investments supporting the Home Warranty business, partially offset by increased investment income from a larger asset base.Despite the expense increase, the pre-tax income margin expanded 180 basis points to 11.3%. The net income margin improved 130 basis points to 9%, supported by stronger operating earnings and lower catastrophe losses. Holding company liquidity totaled $911 million as of June 30, 2026, exceeding the company’s minimum target by $686 million. Operating segments paid $235 million in dividends to the holding company during the quarter.Assurant repurchased about 310,000 shares for $75 million and paid $48 million in common stock dividends. From July 1 through July 31, the company bought back an additional 108,000 shares for $30 million, leaving $544 million under its authorization.Total assets were $36.08 billion, while stockholders’ equity increased to $6.10 billion from $5.87 billion at the end of 2025. The debt-to-total-capital ratio improved 90 basis points year over year to 26.6%. Assurant now expects adjusted EBITDA, excluding reportable catastrophes, to increase by a mid-single-digit percentage in 2026. Excluding the impact of lower favorable prior-year reserve development, underlying growth is expected to approximate 10%.Global Lifestyle adjusted EBITDA is projected to rise by a low-double-digit percentage, supported by Connected Living and Global Automotive. Global Housing adjusted EBITDA, excluding catastrophes, is expected to grow modestly.Adjusted earnings per share, excluding reportable catastrophes, are also expected to increase by a mid-single-digit percentage. Corporate and Other’s adjusted EBITDA loss is now projected at about $145 million. Management expects share repurchases toward the upper end of its previously announced $300-$350 million range. Assurant currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Everest Group, Ltd. EG reported second-quarter 2026 operating earnings of $14.85 per share, which beat the Zacks Consensus Estimate by 1.8%. The bottom line declined 14.5% year over year. Operating revenues of $3.96 billion decreased 11.8% year over year and missed the consensus estimate by 2.9%. Gross written premiums declined 19.4% year over year to $3.77 billion. Our estimate was $3.8 billion. Net premiums earned fell 12.6% to $3.49 billion, reflecting lower business volumes. Our estimate was $3.6 billion.Total claims and expenses fell 10.8% year over year to $3.28 billion. Our estimate was $3.4 billion. Incurred losses and loss-adjustment expenses declined 12.2%, while commission, brokerage, taxes and fees decreased 7.5%. Other underwriting expenses fell 11.4%.Principal Financial Group, Inc.’s PFG second-quarter 2026 operating earnings of $2.50 per share beat the Zacks Consensus Estimate by 7.3%. The bottom line increased 16% year over year. Revenues rose 6.4% year over year to $3.99 billion, which missed the consensus mark of $4.09 billion by 2.4%. Total expenses increased 7.6% year over year to $3.41 billion. Benefits, claims and settlement expenses rose 8.3% to $1.99 billion, while operating expenses increased 8.1% to $1.40 billion.Non-GAAP operating earnings climbed 12% to $547 million. Excluding significant variances, operating earnings advanced 13% to $528.7 million. Net income attributable to PFG declined 1% to $403.4 million.Markel Group Inc. MKL reported second-quarter 2026 adjusted operating income of $19.5 per share, which missed the Zacks Consensus Estimate by 10.4%. The bottom line deteriorated 25% year over year. Total operating revenues were $4 billion, up 0.1% year over year, surpassing the Zacks Consensus Estimate by 8.6%.Earned premiums decreased 3% year over year to $2 billion in the second quarter. The figure was lower than the Zacks Consensus Estimate of $2.1 billion. Net investment income increased 11.4% year over year to $256.1 million in the second quarter. The figure was lower than the Zacks Consensus Estimate of $262 million. Total operating expenses of Markel Group increased 3.7% year over year to $3.6 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Assurant, Inc. (AIZ) : Free Stock Analysis Report Principal Financial Group, Inc. (PFG) : Free Stock Analysis Report Markel Group Inc. (MKL) : Free Stock Analysis Report Everest Group, Ltd. (EG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Prudential Financial, Inc. PRU reported second-quarter 2026 adjusted operating income of $4.08 per share, beating the Zacks Consensus Estimate of $3.47 by 17.6%. The bottom line increased 14% year over year.Total revenues rose 4.8% to $14.15 billion and matched the consensus estimate. Results benefited from stronger PGIM and International Businesses earnings, while assets under management increased 3.9% to $1.64 trillion. Prudential Financial, Inc. price-consensus-eps-surprise-chart | Prudential Financial, Inc. Quote Premiums decreased 1.6% year over year to $6.33 billion. However, policy charges and fee income increased 6.4% to $1.14 billion.Net investment income rose 12% year over year to $5.15 billion, while asset management fees, commissions and other income increased 9.2% year over year to $1.54 billion. These gains helped adjusted operating income before taxes increase 9.7% year over year to $1.83 billion. PGIM revenues increased 6.1% year over year to $1.11 billion. Adjusted operating income surged 28.4% year over year to $294 million, reflecting higher asset management fees driven by equity market appreciation and strong investment performance. The metric beat the Zacks Consensus Estimate by 12.6%. The segment also benefited from higher net service, distribution and other revenues. These gains were partially offset by the impact of net outflows and higher interest rates.PGIM assets under management increased 4% to $1.49 trillion, primarily driven by equity market appreciation and strong investment performance. Total net inflows were $1.6 billion, as third-party inflows of $4.6 billion more than offset affiliated outflows of $3 billion. U.S. Businesses generated adjusted operating income of $957 million, up from $955 million a year ago. A favorable impact from the annual assumption update offset higher expenses and less favorable underwriting.Retirement adjusted operating income declined slightly to $392 million from $397 million. Higher expenses and unfavorable mortality and run-off experience in the pension risk transfer block outweighed improved net investment spread results.Retirement account values increased 4.2% year over year to $362.73 billion. Quarterly sales totaled $6.8 billion, including $3.6 billion of retail annuity sales, supported by demand for registered index-linked annuity products. Group Insurance adjusted operating income increased 24% year over year to a record $155 million. The metric beat the Zacks Consensus Estimate by 31.4%. The increase reflected a favorable assumption update, better life underwriting from favorable mortality and higher spread income, partly offset by growth-related expenses.Year-to-date Group Insurance sales climbed 25.6% to $599 million. Growth was driven by disability products, including supplemental health offerings and continued momentum in the Premier middle-market segment.Individual Life adjusted operating income more than doubled to $176 million from $82 million. The metric beat the Zacks Consensus Estimate by 12.1%. More favorable assumption updates, improved underwriting and higher spread income supported the increase.Second-quarter Individual Life sales rose 9.2% year over year to a record $237 million, primarily due to sustained demand for variable accumulation products. U.S. Legacy Products adjusted operating income declined 33.3% year over year to $234 million. The metric missed the Zacks Consensus Estimate by 6.4%. The decrease reflected a less favorable assumption update, weaker guaranteed universal life underwriting and lower fee income from the continued run-off of traditional variable annuities.Legacy annuity account values decreased 7.1% year over year to $76.09 billion. Net outflows from the run-off block more than offset the benefit of market appreciation.Total benefits and expenses increased 4.1% year over year to $12.33 billion. Operating expenses rose 6.1% year over year to $1.73 billion, while interest credited to policyholders’ account balances increased 21.6% year over year to $1.38 billion. International Businesses adjusted operating income increased 12.4% year over year to $855 million. Results benefited from higher spread income, a favorable assumption update, increased joint venture earnings and continued business growth in Brazil. The metric beat the Zacks Consensus Estimate by 20.8%. These gains were partly offset by higher expenses and less favorable underwriting linked to Prudential of Japan’s voluntary sales suspension. Constant-dollar sales fell 32.5% year over year to $361 million, primarily due to the suspension.Corporate and Other recorded an adjusted operating loss of $279 million compared with the year-ago loss of $280 million. Prudential Financial now expects the segment’s full-year 2026 loss to total $1.55 billion. Parent company highly liquid assets totaled $4.2 billion, exceeding the company’s target of more than $3 billion. Total assets increased 3.2% year over year to $783.55 billion.Adjusted book value per share increased 4.7% year over year to $100.91. Adjusted operating return on equity expanded 150 basis points to 16.4%.Prudential Financial returned $743 million to shareholders during the quarter, including $250 million through share repurchases and $493 million in dividends. The quarterly dividend was $1.40 per share. Prudential Financial currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Assurant, Inc. AIZ reported second-quarter 2026 adjusted earnings of $6.41 per share, beating the Zacks Consensus Estimate of $5.16 by 24.2%. The bottom line increased 25.7% year over year. Revenues rose 9.4% to $3.46 billion and surpassed the consensus estimate of $3.40 billion by 1.8%. Net earned premiums increased 6.9% year over year to $2.77 billion. The figure was higher than our estimate of $2.71 billion. Fees and other income climbed 19.6% year over year to $554.6 million, reflecting continued expansion across the company’s protection and service programs. The figure was higher than our estimate of $500.3 million. Net investment income advanced 10.6% year over year to $142.4 million. The figure was lower than our estimate of $153.1 million. Total segment net earned premiums, fees and other income grew 8.9% to $3.32 billion, supported by gains in both operating segments.Everest Group, Ltd. EG reported second-quarter 2026 operating earnings of $14.85 per share, which beat the Zacks Consensus Estimate by 1.8%. The bottom line declined 14.5% year over year. Operating revenues of $3.96 billion decreased 11.8% year over year and missed the consensus estimate by 2.9%. Gross written premiums declined 19.4% year over year to $3.77 billion. Our estimate was $3.8 billion. Net premiums earned fell 12.6% to $3.49 billion, reflecting lower business volumes. Our estimate was $3.6 billion.Total claims and expenses fell 10.8% year over year to $3.28 billion. Our estimate was $3.4 billion. Incurred losses and loss-adjustment expenses declined 12.2%, while commission, brokerage, taxes and fees decreased 7.5%. Other underwriting expenses fell 11.4%.Principal Financial Group, Inc.’s PFG second-quarter 2026 operating earnings of $2.50 per share beat the Zacks Consensus Estimate by 7.3%. The bottom line increased 16% year over year. Revenues rose 6.4% year over year to $3.99 billion, which missed the consensus mark of $4.09 billion by 2.4%. Total expenses increased 7.6% year over year to $3.41 billion. Benefits, claims and settlement expenses rose 8.3% to $1.99 billion, while operating expenses increased 8.1% to $1.40 billion.Non-GAAP operating earnings climbed 12% to $547 million. Excluding significant variances, operating earnings advanced 13% to $528.7 million. Net income attributable to PFG declined 1% to $403.4 million. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Prudential Financial, Inc. (PRU) : Free Stock Analysis Report Assurant, Inc. (AIZ) : Free Stock Analysis Report Principal Financial Group, Inc. (PFG) : Free Stock Analysis Report Everest Group, Ltd. (EG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Everest Group (EG) just released second quarter 2026 results that show lower revenue and net income compared with a year earlier, alongside an active share repurchase program that continued through the end of June. See our latest analysis for Everest Group. Everest Group's latest results and the ongoing buyback have come alongside a 30 day share price return of 3.95% and an 11.86% year to date share price return, while the 1 year total shareholder return of 15.71% and 5 year total shareholder return of 58.77% indicate momentum that has been building over a longer period. If this earnings release has you thinking more broadly about insurance and risk related opportunities, it could be a good time to scan 18 top founder-led companies After a solid run and active buybacks, Everest Group now asks a simple question of investors: Do the current earnings power and capital returns still leave enough upside to justify taking on the insurance cycle risk from here? Everest Group's latest internal fair value estimate of $399.33 sits modestly above the recent close around $374, which puts more focus on the underlying narrative that supports that gap. Read the complete narrative. Want to understand why this narrative still points to upside despite forecast revenue declines? The key lies in the margin profile, earnings path, and how analysts frame those cash flows over time. Result: Fair Value of $399.33 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Everest Group's growing catastrophe exposure and softer property and casualty pricing could pressure earnings and undermine the margin improvement that supports the current upside case. Find out about the key risks to this Everest Group narrative. The mix of earnings pressure and perceived upside around Everest Group can sound conflicting, so it helps to move fast and review the underlying numbers yourself. To see what investors are highlighting as potential upsides, check the 4 key rewards. If Everest Group has sharpened your thinking, do not stop here. Cast the net wider now so you are not looking back wishing you had. Zero in on potential upside by scanning companies that currently screen as 55 high quality undervalued stocks Strengthen your downside protection by focusing on businesses highlighted in the 81 resilient stocks with low risk scores Get ahead of the crowd by reviewing the screener containing 19 high quality undiscovered gems 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. Companies discussed in this article include EG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Operating Income: $585 million for Q2 2026. Annualized After-Tax Net Operating ROE: 14.9%. Annualized Total Shareholder Return: 16.8%. Book Value Per Share (Excluding Unrealized Gains/Losses): Grew 12% year over year to roughly $408. Core Businesses Underwriting Income: $317 million on a combined ratio of 90%. Core Businesses Gross Written Premium: $3.7 billion, down approximately 7% year over year on a comparable basis. Core Combined Ratio: 90%, including $85 million in catastrophe losses. Core Attritional Loss Ratio: 57.8%, relatively consistent with the prior year. Core Expense Ratio: 5.1%, reflecting lower net earned premium and higher expenses. Reinsurance Treaty Combined Ratio: 88.5%, a year-over-year increase of 360 basis points. Reinsurance Treaty Attritional Loss Ratio: Increased 140 basis points to 57.1%. Reinsurance Treaty Gross Written Premium: Decreased approximately 9% year over year on a constant-dollar basis, excluding reinstatement premiums. Global Wholesale & Specialty Combined Ratio: 95.2%, in line with the prior-year quarter. Global Wholesale & Specialty Attritional Loss Ratio: Improved 390 basis points to 60.6%. Global Wholesale & Specialty Gross Written Premium: Roughly flat year over year. Net Investment Income: $523 million for the quarter, modestly lower year over year. Book Yield: Stable at 4.5%, below the current new-money yield of approximately 5%. Share Repurchases: Approximately 1.2 million shares repurchased for $395 million at an average price of $342 per share in Q2. Capital Returned to Shareholders: Over $470 million between share repurchases and dividends in Q2. Mt. Logan Capital Management AUM: Approximately $3.4 billion as of July 1, up 89% from the beginning of 2025. Warning! GuruFocus has detected 5 Warning Sign with EG. Is EG fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Everest Group Ltd (NYSE:EG) delivered strong second-quarter results with operating income of $585 million and an annualized after-tax net operating ROE of 14.9%. The core businesses (Reinsurance Treaty and Global Wholesale & Specialty) generated underwriting income of $317 million on a combined ratio of 90%, demonstrating strong underwriting discipline. The company's third-party capital platform, Mt. Logan Capital Management, grew AUM by 89% to approximately $3.4 billion, providing additional capital flexibility and fee income opportunities. Everest Group Ltd (NYSE:EG) continues to aggressively return capital to shareholders, repurchasing $395 million in shares during the quarter and maintaining a $300 million quarterly floor, reflecting confidence in the balance sheet. The company is enhancing transparency by providing new consolidated financial results for core businesses and revising its definition of after-tax net operating income to align with industry peers. Gross written premium in core businesses declined approximately 7% year-over-year due to deliberate underwriting choices, reflecting a softening market and reduced exposure to US casualty lines. Property pricing in the market declined 15% to 20% at renewals, and while Everest Group Ltd (NYSE:EG) achieved better pricing, the competitive environment is expected to persist into 2027. The company experienced higher catastrophe losses in the quarter, including $85 million net losses driven by the Middle East conflict and weather-related events, impacting the combined ratio. Everest Group Ltd (NYSE:EG) strengthened casualty reserves by nearly $200 million due to elevated loss trends and adverse development in older accident years, reflecting a cautious outlook on the US tort environment. The expense ratio increased to 5.1% in the core businesses due to lower net earned premium and higher investments in the business, which could pressure margins in the near term. Q: What gives you confidence in the strength of the balance sheet and reserve quality, given the recent turnover in the CFO and Chief Actuary roles?A: Elias Habayeb, CFO, stated that he has assessed the balance sheet's capital adequacy, liquidity, leverage, and overall risk profile and believes it is strong, providing conviction to deliver on share repurchases in excess of $300 million going forward. Regarding reserves, he noted that he and the new Chief Actuary decided to react proactively to emerging data in the current quarter rather than waiting for the annual reserve studies to be completed in the third quarter. Q: Can you provide more detail on the casualty reserve strengthening taken in the second quarter, including which segment and accident years were affected?A: Elias Habayeb, CFO, explained that the reserve strengthening was roughly just under $200 million, primarily in the North America casualty book on the Treaty side. The decision was driven by elevated loss trends and higher-than-expected loss emergence in older accident years. They decided to reflect this across most accident years to stay ahead of the trend. They did not adjust the 2026 casualty loss picks, as they feel they are already prudent, and they did not give credit for any underwriting actions or tort reform. Q: How should we think about the impact of the new casualty and specialty sidecar, Annapurna Re, on the underlying reinsurance accident-year loss ratio and the company's net casualty exposure?A: Jim Williamson, CEO, clarified that the company's underwriting logic is not changed by the availability of third-party capital. They start with gross underwriting discipline and have reduced casualty exposure by over $1 billion in recent quarters. The sidecar takes a predefined quota-share sliver of everything written, ensuring alignment of interests. In the near term, the net retention of casualty will go down, and they will not stretch to find more gross business as a result of the transaction. CFO Elias Habayeb added that the near-term attritional loss ratio for the Treaty business should be expected in the mid-50s. Q: How did Everest achieve a 10% decrease in property-cat pricing on its portfolio when the market saw declines of 15% to 20% at the mid-year renewals?A: Jim Williamson, CEO, attributed this to the strength of their global platform and deep client relationships, which allows them to position capacity where returns are best. They shifted participation on programs, moving slightly more remote from loss with a higher average attachment point. They deployed more capacity on programs with healthy risk-adjusted economics and pulled back from others. The use of non-concurrent terms, particularly in Florida, also provides a competitive advantage. Q: What is the current casualty loss trend assumption, and why was there no change to the current-year loss picks despite the prior-year strengthening?A: Elias Habayeb, CFO, stated that loss trends on casualty have been relatively stable since the last reserve study, varying by line between high-single digits and low-double digits. They reacted to what they know from the data, which showed elevated trends and adverse emergence in older years, but they believe the current accident-year picks are prudent and require no adjustment at this time. The annual reserve studies are ongoing and will be completed later in the third quarter. Q: Can you provide guidance on the catastrophe load and how the changing portfolio mix and Annapurna Re might affect it?A: Elias Habayeb, CFO, confirmed that Annapurna Re is focused on casualty and specialty lines, not property-cat. He provided guidance of roughly 8 points of catastrophe load on the Reinsurance Treaty side and roughly 4 points on the Global Wholesale & Specialty side. Q: What drove the significant improvement in the attritional loss ratio in the Global Wholesale & Specialty segment?A: Elias Habayeb, CFO, attributed the roughly 350 to 400 basis points year-over-year improvement to a combination of a better business mix and improved loss experience. He emphasized that despite the improvement, they have not changed their prudence on long-tail lines, maintaining conservative picks. Q: How should we think about the capital that will be freed up from the legacy segment, and could it be additive to the $300 million quarterly share repurchase floor?A: Elias Habayeb, CFO, noted that there is over $1 billion of capital sitting behind the legacy business that will free up over time as reserves run off. He stated that the company has the capacity to buy more than $300 million per quarter, given the strength of the balance sheet and earnings generation. This conviction is supported by the 81% payout ratio in the second quarter and nearly 80% over the last three quarters. Q: Given the increased flow of alternative capital into the reinsurance market, what impact do you expect on pricing and returns, particularly with the new casualty sidecars?A: Jim Williamson, CEO, acknowledged that increased supply of capital applies marginal competitive pressure, but noted that third-party capital is still a relatively small part of the total industry capitalization. He believes the current price trajectory is more a result of underwriters looking to deploy capital created from recent profitable years. He expressed hope that the industry has learned from past cycles and sees increased sophistication from capital providers, with Everest working only with partners who fully understand the risks. Q: Can you elaborate on the strategy behind the Annapurna Re sidecar and how you determine what casualty business is ceded versus retained?A: Jim Williamson, CEO, explained that the process is a negotiation aligning Everest's appetite to cede business with capital partners' appetite to provide capacity. A key theme is alignment of interests, so they are not cherry-picking deals. The structure is a quota share that takes a predefined sliver of everything written, ensuring the experience of Everest and its capital providers is the same. This approach is considered the most sustainable and aligned way to build these structures. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

A Quiet Outperformer With a Catastrophe Caveat Everest Group (NYSE:EG) reported second-quarter operating income of $585 million, supported by underwriting income and investment income, as management emphasized underwriting discipline, portfolio adjustments and capital returns amid competitive reinsurance market conditions. President and CEO Jim Williamson said the company generated an annualized after-tax net operating return on equity of 14.9% and annualized total shareholder return of 16.8%. Book value per share excluding unrealized gains and losses increased 12% year over year, while operating earnings per share were $14.85, according to Executive Vice President and CFO Elias Habayeb. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now REITs Set for a 2026 Rebound? 7 Top Picks as Rate Cuts Approach The company’s core businesses—Reinsurance Treaty and Global Wholesale & Specialty—produced $317 million of underwriting income on a 90% combined ratio. Gross written premiums in those businesses totaled $3.7 billion, down about 7% on a comparable basis from the prior-year quarter as Everest reduced or exited business that did not meet its return thresholds. Everest’s Reinsurance Treaty business generated $283 million in underwriting income and posted an 88.5% combined ratio. Gross written premiums declined approximately 9% year over year on a constant-currency basis, excluding reinstatement premiums. Casualty premiums fell 19%, while property premiums were relatively flat as growth in property pro rata business offset reductions in the catastrophe portfolio. → Microsoft Just Flipped the AI Spending Narrative Overnight 3 High-Momentum Gold Stocks Surging on the Metals Rally Williamson said the company continued to reduce exposure to U.S. casualty lines while selectively cutting business where pricing or structure did not meet return requirements. He added that Everest is expanding selectively in specialty lines globally, including areas such as data centers, construction and renewable energy. Property pricing declined by roughly 15% to 20% across the market at the June 1 and July 1 renewal periods, according to Williamson. Everest’s property catastrophe portfolio saw pricing decline by about 10% across those periods. He said terms and conditions have been largely maintained and attachment points have remained relatively stable. → Carrier Earnings Could Send the Stock to a New All-Time High During the question-and-answer session, Williamson said Everest moved its average attachment point slightly higher during midyear renewals and shifted capacity among programs based on risk-adjusted economics. He said the company did not move lower in reinsurance towers to obtain better pricing. Habayeb said the Reinsurance Treaty segment’s attritional loss ratio rose 140 basis points to 57.1%, largely due to higher weather-related non-catastrophe losses. Excluding those losses, the ratio would have been 54.4%, representing a 130-basis-point year-over-year improvement driven by business mix and improved loss experience. He said investors should view the near-term attritional loss ratio for the treaty operation as being in the mid-50s. Global Wholesale & Specialty reported a 95.2% combined ratio, unchanged from the prior-year quarter. Its attritional loss ratio improved 390 basis points to 60.6%, which Habayeb attributed to underwriting actions and an improved mix of business. Gross written premiums were roughly flat in the segment. Growth in niche specialty products and international markets was offset by intentional reductions in U.S. property and casualty business. Everest reported double-digit international growth across financial lines, marine, political violence and selected specialty property markets. Rate across the segment was flat, as double-digit property rate declines were offset by rate increases in casualty. Catastrophe losses added 1.4 points to the combined ratio, while the prior-year quarter had minimal catastrophe losses. Habayeb said Everest continues to expect the segment to deliver combined ratios in the mid-to-high 90s in the near term. Everest reported no net prior-year reserve development in the quarter. Habayeb said favorable development in short-tail lines was offset by a higher industry loss estimate for the Baltimore Bridge collapse and strengthening in casualty reserves. The company increased its reserve estimate for the Baltimore Bridge matter by about $55 million, bringing its estimate in line with an industry loss range of approximately $2.8 billion to $3 billion. Everest also strengthened North American casualty treaty reserves by just under $200 million. Habayeb said loss emergence was concentrated in older accident years, but the company reflected the experience across most accident years. Management did not adjust 2026 casualty loss picks during the quarter. Habayeb said casualty loss trends have remained relatively stable since the prior reserve study, ranging from high single digits to low double digits depending on the line of business. Everest expects to complete annual reserve studies for most long-tail lines later in the third quarter and plans to publish enhanced global loss-triangle disclosures during the coming month. Net investment income was $523 million, modestly below the prior-year period due to lower alternative investment returns. The investment portfolio’s book yield was 4.5%, compared with a current new-money yield closer to 5%, Habayeb said. Everest said its Mt. Logan Capital Management platform had approximately $3.4 billion in assets under management as of July 1, up 89% from the beginning of 2025. The growth included the launch of Annapurna Re, a casualty and specialty reinsurance sidecar. The company expects to cede roughly $200 million of premium per quarter to Annapurna Re over the next three years. Management said the sidecar should be modestly accretive to underwriting income and return on equity over time, while reducing net investment income. Williamson said the arrangement is structured as a quota share and is intended to align Everest’s experience with that of its third-party capital partners. Capital returns remained a priority. Everest repurchased approximately 1.2 million shares during the second quarter for $395 million at an average price of $342 per share, alongside dividends, resulting in a quarterly payout ratio of 81%. Since Williamson became CEO in January 2025, the company has deployed $1.5 billion toward share repurchases and reduced shares outstanding by more than 10%. Habayeb said Everest views $300 million of quarterly repurchases as a floor and expects to exceed that amount when appropriate. The company also has more than $1 billion of capital supporting its legacy business that is expected to be released over time as reserves run off. Everest’s commercial retail insurance transition to AIG remains on track, with roughly $250 million of net premiums left to be earned in the second half of 2026. Everest Group (NYSE:EG) is a global research and consulting firm specializing in strategic advisory, market intelligence, and data-driven analysis for business process, information technology, and emerging technology services. The company provides insights and benchmarks that help enterprises and service providers optimize digital transformation initiatives, sourcing strategies, and operational performance. Through its proprietary research frameworks and data analytics, Everest Group delivers actionable guidance on areas such as automation, cloud migration, customer experience, and supply chain resilience. With offerings that span advisory engagements, managed services research, and consulting projects, Everest Group serves multiple industry verticals, including banking and financial services, healthcare, manufacturing, telecommunications, and retail. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Everest Group Q2 Earnings Call Highlights" was originally published by MarketBeat. 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