Question · Q4 2025
Michael Zarembski questioned whether 2025's catastrophe losses, estimated around $800 million for Everest, were below average and if a 'normal' year for 2026 or 2027 would imply double that level, considering mixed positioning.
Answer
Jim Williamson, President and CEO, Everest Group, characterized 2025 as an 'expected' or 'new normal' year for industry losses ($110B-$130B), noting global events in Q4 despite no major U.S. landfalling hurricane. He doesn't anticipate a dramatic change in Everest's CAT load approach, though the denominator (earned premium) will shift due to the retail divestiture. Mark Kociancic, EVP and CFO, Everest Group, affirmed that buybacks would be elevated in 2026, with a payout ratio higher than the normal 40%-50% range, given the discounted share price and less growth intensity. He stated they would communicate more specific guidance as the year progresses.
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