Everest Group awards stock, boosts executive bonuses

Everest Group, Ltd. (NYSE:EG), a Bermuda-based insurance firm with a market capitalization of $15.31 billion and annual revenue of $17.21 billion, has announced significant compensation changes for its top executives, as detailed in a recent 8-K filing with the Securities and Exchange Commission. InvestingPro analysis shows the company maintains a GOOD financial health score and stands as a prominent player in the Insurance industry. On February 26, 2025, the company’s Compensation Committee approved new compensation awards for key management personnel.

The company granted a one-time award of restricted stock to Jim Williamson, the President and Chief Executive Officer, and Mark Kociancic, the Executive Vice President and Chief Financial Officer. The stock awards are valued at $2.5 million for Williamson and $1.5 million for Kociancic, based on the fair market value on the effective date of the grants. Currently trading at $355.37 per share with a P/E ratio of 11.32, the stock appears to be fairly valued according to InvestingPro’s Fair Value analysis.

In addition to the restricted stock, the Compensation Committee increased Kociancic’s target annual incentive bonus to 175% of his base salary. Furthermore, the target value of his equity compensation was raised to $2.5 million. The adjustments in compensation reflect the company’s commitment to aligning the interests of its executives with those of its shareholders.

The filing, dated March 4, 2025, confirms that these changes have been officially enacted and underscore the company’s strategy to incentivize executive leadership. Everest Group specializes in fire, marine, and casualty insurance and operates under the organization name "02 Finance."

The SEC filing is a routine disclosure that Everest Group is required to make regarding compensatory arrangements of certain officers. It provides investors and the public with transparency into the company’s executive compensation practices. The company maintains a healthy 2.25% dividend yield and has demonstrated consistent profitability over the last twelve months. For deeper insights into Everest Group’s financial performance and executive compensation trends, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US equities.

The information regarding these executive compensation changes is based on the press release statement filed with the SEC and does not include any commentary or speculative insights.

In other recent news, Everest Group reported a surprising fourth-quarter net loss of $593 million, or $13.96 per share, compared to a net income of $804 million, or $18.53 per share, in the same period last year. Analysts had anticipated a profit of $12.78 per share, but the company’s revenue also fell short at $4.03 billion against the expected $4.42 billion. A significant factor in these results was the company’s decision to strengthen its U.S. casualty reserves by $1.1 billion, contributing to a total charge of $1.3 billion for the current accident year. This move resulted in a combined ratio of 239.2% for the Insurance segment in Q4. Despite this, Everest’s Reinsurance segment showed resilience with a 12.6% year-over-year growth in gross written premiums to $3.3 billion.

Morgan Stanley (NYSE:MS) recently downgraded Everest Group’s stock from Overweight to Equalweight, revising the price target to $340 from $425. This change was influenced by the company’s $1.7 billion reserve charges and concerns about subdued growth prospects in the primary casualty and reinsurance segments. The analysts have also lowered their earnings per share estimates for 2025 and 2026 by 26% and 20%, respectively. Meanwhile, TD Cowen maintained its Hold rating with a price target of $405, noting that the fourth-quarter earnings miss was anticipated due to the pre-announced reserve charge. The firm suggested that future management discussions might provide further insights into the company’s trajectory.

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