Everest Group: Turnaround Is Underway

Seeking Profits5.32K FollowersFollow5ShareSavePlay(9min)Comment(1)SummaryEverest Group is executing a strategic transition, shrinking its insurance business by 30%-40% and focusing on higher-quality underwriting.EG trades at a 12% discount to book value, with buybacks and a 2.4% dividend yield supporting total returns; I maintain a "Buy" rating with a $370 target.Reinsurance margins are peaking, while insurance remains challenged; restructuring costs and ADC coverage reduce legacy risk, but near-term growth is constrained.Capital return is robust, with $1 billion in buybacks likely for 2026 and book value expected to exceed $400, barring major catastrophe events. Andrii Dodonov/iStock via Getty Images Shares of Everest Group (EG) have been a poor performer over the past year, losing about 3% of their value. While the quiet hurricane season was a major positive, difficulties with legacy policies required Everest to add reserves, reinsure some of its risk, and essentiallyThis article was written bySeeking Profits5.32K FollowersFollowOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.