Everest adds US$253 million to casualty reserves and cuts premium volume

By The Financial Edition · 29 October 2026 · 08:55 GMT · Insurance Business UK · 1 min read

Third-Quarter Results and Reserve Strengthening

Everest Group added US$253 million in net adverse casualty reserve development during the third quarter of 2026, marking its third successive quarter of significant reserve additions for its US liability book. The reinsurer posted a net income of US$233 million for the quarter, down from US$255 million in Q3 2025, alongside a group combined ratio of 107.1%. Pre-tax catastrophe losses added 10.5 points to the ratio, driven by earthquakes in Colombia, Middle Eastern events, and global weather losses.

Casualty Book Remediation

The latest reserve strengthening was concentrated in the reinsurance treaty segment and follows more than US$200 million of reinsurance casualty strengthening in the second quarter. In parallel, Everest reduced its casualty excess-of-loss premium by 24.8% and its casualty pro-rata premium by 15.8% year-on-year in Q3 2026. The company attributes the ongoing reserve pressures to social inflation and portfolio concentrations in certain US casualty lines, prompting a broader pullback in casualty reinsurance capacity ahead of upcoming renewals.

Jargon, explained.

reinsurance: Insurance purchased by insurers to share part of their own exposure to large claims.
premium: The amount paid for an insurance policy.
combined ratio: An insurance measure comparing claims and operating costs with premiums earned; below 100% generally indicates an underwriting profit.

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