Everest Returns $474 Million Through Share Buybacks, Sets Quarterly Floor at $300 Million
Key Facts
Everest Group repurchased about 1.3 million shares for $474 million in the third quarter of 2026, at an average of $374 per share. Its chief financial officer said the company continues to view $300 million as a quarterly floor for buybacks. He added that Everest expects to exceed that level "when appropriate," given the strength of its balance sheet and earnings generation. Including dividends, the company returned about $550 million to shareholders during the quarter. The policy comes as the company faces pressure from the development of prior-year claims reserves. The stock closed at $386.88 on October 28, 2026.
The ratio of dividends and capital returned to earnings was about 92% over the previous four quarters, the company said on its earnings call. The figure reflects the scale of returns Everest delivered to shareholders over the period as it continued share repurchases and dividend payments. The chief executive confirmed that buybacks will remain a priority as the year draws to a close and the company looks toward 2027. He said the company is focused on executing its strategies in its core businesses and deploying capital proactively. That priority places buyback decisions within the company's stated capital allocation framework, alongside underwriting and investment results.
On reserves, the chief financial officer said the gap between management's best estimates and central actuarial estimates exceeded $850 million as of September 30, 2026. He said the gap widened after reserve reviews added conservatism to assumptions and methodologies. This amount represents the difference between management's estimates and the central estimates, not additional reserves recorded above the actuarial estimate. In the third quarter, the company recorded about $268 million in unfavorable net prior-year reserve development. That added 8.5 points to the group's combined ratio, according to its official results.
Across core businesses, gross written premiums were $3.7 billion in the third quarter, down 4% on a comparable year-over-year basis. Treaty reinsurance activity fell 6.2%, while global wholesale and specialty business rose 3.2% over the same period. The figures show diverging trends across business lines, with premiums contracting in treaty reinsurance and growing in wholesale and specialty. Underwriting results in the quarter were also affected by unfavorable prior-year claims reserve development. Meanwhile, net investment income rose to $634 million from $540 million in the year-earlier quarter, driven by higher returns from alternative investments.
Management said net investment income reached a quarterly record of $634 million and that the private equity portfolio generated $144 million during the quarter. The company attributed much of the increase in investment income to strong performance from its private equity portfolio. Net investment income of $634 million compares with $540 million in the third quarter of 2025. The growth provides a parallel source of capital returns during a period marked by lower premiums in core businesses and additional costs related to prior-year loss reserves. The company did not specify a date for its next buyback decision in the statements cited, but said repurchases will remain a priority as it heads into 2027.