Shares of Everest Group, Ltd. (EG) are trading at a discount compared with the industry. Its trailing 12-month price-to-book value of 0.92X is lower than the industry average of 2.74X. The insurer has a Value Score of A.
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Everest Group underwrites property and casualty reinsurance and insurance in the United States and international markets. The company is poised for growth from product diversification, international insurance expansion, a strong capital position and growing third-party capital. The insurer has a market capitalization of $14.2 billion. The average volume of shares traded in the last three months was 0.37 million.
Shares of other insurers, including American International Group AIG, Aegon NV AEG and Assurant, Inc. AIZ, are also trading at a discount to the industry average.
EG’s Price Performance
EG’s shares have risen 9.8% in the past year compared with the industry’s 5.6% growth.
1-Year Price Performance: EG, AIZ, AEG, AIG & Industry
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Shares of other insurers like AEG and AIZ have gained 11.5% and 27.6%, respectively, while AIG have lost 1.9% over the same time period.
EG’s Average Target Price Suggests Upside
Based on short-term price targets offered by 16 analysts, the Zacks average price target is $404.81 per share. The average suggests a potential 9.6% upside from the last closing price.
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EG’s Growth Projection
The Zacks Consensus Estimate for Everest Group’s 2026 earnings per share (EPS) is pinned at $53.66, indicating a 20.5% year-over-year increase. The estimate for 2026 revenues is pegged at $15.49 billion, implying a year-over-year decline of 11.5%. The consensus estimate for 2027 EPS indicates an increase of 10.1%, while revenues indicate a decrease of 6.6% from the corresponding 2026 estimates.
EG’s earnings grew 18% in the last five years, better than the industry average of 11.1 %. The expected long-term earnings growth is pegged at 9.6%.
Mixed Analyst Sentiment on EG
The Zacks Consensus Estimate for 2026 earnings has moved north by 1.5%, while the consensus mark for 2027 has moved south by 0.7% over the same period.
EG’s Return on Invested Capital
The return on invested capital in the trailing 12 months was 8.9 %, better than the industry average of 1.2%, reflecting the company’s efficiency in utilizing funds to generate income.
What Drives EG?
Reinsurance Treaty remains a key contributor to Everest Group’s underwriting profitability, supported by disciplined underwriting, favorable reserve development and strong risk selection. In the second quarter of 2026, the business delivered an 88.5% combined ratio, highlighting effective portfolio management.
Global Wholesale & Specialty is another growth driver. The segment is benefiting from portfolio optimization and growth in higher-margin specialty businesses. International operations recorded double-digit growth in areas including financial lines, marine and political violence, supporting business diversification.
Although property-catastrophe pricing has softened, Everest Group has shown relative pricing resilience. Its property-catastrophe rates declined about 10% during the midyear renewals compared with a 15-20% fall across the broader market. The company is responding to the softer market by maintaining underwriting discipline and focusing on business that meets its return targets.
International expansion is also supporting growth, with Everest Group focusing on scaling operations in markets such as Mexico, Colombia, Australia and Italy, targeting regions with strong insurance demand and underpenetrated segments. Mexico and Colombia offer growth opportunities, driven by rising insurance adoption and demand for customized solutions. Australia and Italy provide exposure to developed markets with an increasing need for specialty and non-life coverage.
Everest Group’s third-party capital platform continues to expand, with Mount Logan Capital Management’s AUM reaching approximately $3.4 billion as of July 1, 2026, up 89% from the beginning of 2025. The launch of Annapurna Re provides another avenue to transfer risk, support growth and enhance capital flexibility. Management expects to receive approximately $200 million in premiums per quarter.
The company also maintains a strong cash position and continues to enhance shareholder returns through regular dividends and an aggressive share repurchase program. It repurchased $395 million of shares during the second quarter and paid $78 million in dividends. Management expects to maintain a minimum quarterly buyback pace of $300 million throughout 2026.
Risks for EG Stock
Property catastrophe reinsurance pricing continues to soften, which may weigh on premium growth and margins despite favorable policy terms.
Everest Group faces foreign exchange risk as it operates in currencies such as the euro, pound and Canadian dollar while reporting in U.S. dollars.
Everest Group remains vulnerable to large catastrophe losses and geopolitical events. Large natural disasters or geopolitical events could increase claims and adversely impact underwriting profitability.
Conclusion
Everest Group is poised for growth from underwriting discipline, international insurance expansion, a growing third-party capital platform and strong financial flexibility. The attractive valuation and higher returns are the other positives. However, foreign exchange volatility, geopolitical tensions and catastrophe losses continue to be concerns. It is wise to adopt a wait-and-see approach toward this Zacks Rank #3 (Hold) stock presently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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