Everest Group (EG) risk factors, FY2025 10-K

Everest Group's FY2025 10-K, filed Feb 26, 2026, lists 49 risk factors. Against the prior year's 44: 9 new, 4 dropped, 18 substantially reworded.

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Risk factors listed
490 groups
New this year
9vs 44 last year
Dropped
4since the prior 10-K
Substantially reworded
18of those kept
Section length
12k wordsItem 1A

What the changes say

  • Everest Group highlights new risks from credit exposure, executive changes, and regulatory compliance on sanctions and corruption.

What changed since the prior 10-K

New

  • New

    We are exposed to unpredictable catastrophic events, including, but not limited to, weather-related and other natural catastrophes, as well as acts of terrorism, wars, pandemics, political instability and significant cyber or operational incidents

    Climate change and severe convective storms may increase catastrophic events, impacting risk modeling and our ability to pay dividends or debt.

  • New

    Percentage of ceded written premiums to gross written premiums 12.4 % 13.3 % 11.5 % 11.5 % 12.3 %

    Ceded written premiums accounted for between 11.5% and 13.3% of gross written premiums, and inability to renew reinsurance could limit business.

  • New

    The failure of our insureds, intermediaries and reinsurers to satisfy their obligations to us could reduce our income

    Uncollateralized receivables and potential defaults by reinsurers, including counterparties to adverse development cover agreements, could reduce our net income.

  • New

    Global economic conditions could adversely affect our business, results of operations or financial condition

    Global economic uncertainties, interest rate paths, tariffs, supply chain disruptions, and potential recessions could adversely affect our business.

  • New

    We are dependent on our key personnel

    Following 2025 executive promotions and leadership appointments, our success depends on retaining key personnel and adapting to AI skill sets.

  • New

    We are dependent on brokers and agents for business developments

    Deterioration in our relationships with our broker and agent distribution network could adversely affect our ability to sell products.

  • New

    Business or asset acquisitions and dispositions may expose us to certain risks

    Business or asset acquisitions and dispositions expose us to regulatory approval risks and potential failure to achieve expected synergies.

  • New

    We may be subject to legal, governmental or regulatory proceedings

    Regulatory investigations, litigation, and arbitrations regarding our policies and reinsurance contracts could result in fines, penalties, or reputational damage.

  • New

    Our business is subject to certain laws and regulations relating to sanctions and foreign corrupt practices, the violation of which could adversely affect our operations

    Failure to comply with U.S. OFAC economic sanctions, Department of State laws, or the Foreign Corrupt Practices Act could expose us to penalties.

Dropped

  • Dropped

    downgrade or withdrawal of any of these ratings could adversely affect our ability to market our reinsurance and insurance products, our ability to compete with other reinsurers and insurers and our ability to write new business, which in turn could impact our profitability and results

  • Dropped

    In accordance with industry practice, we have uncollateralized receivables from insureds, agents and brokers and/or rely on agents and brokers to process our payments. We may not be able to collect amounts due from insureds, agents and brokers, resulting in a reduction to net income

  • Dropped

    In January 2025, James Williamson, Executive Vice President and Chief Operating Officer, was appointed President and CEO and member of the Board of Directors after the departure of our former President and CEO, Juan Andrade

  • Dropped

    On August 16, 2022, the IRA was enacted. We have evaluated the tax provisions of the IRA, the most significant of which are the corporate alternative minimum tax and the share repurchase excise tax and do not expect the legislation to have a material impact on our results of operations

Reworded

  • 100% rewritten

    Our results could be adversely affected by catastrophic events

    Updated to include secondary perils like severe convective storms and expanded climate change impacts on catastrophe risk modeling.

  • 92% rewritten

    If we are unable to or choose not to purchase reinsurance and transfer risk to the reinsurance markets, our net income could be reduced or we could incur a net loss in the event of unusual loss experience

    Replaced text emphasizing low reliance on reinsurance with warnings about market constraints, inflation, and catastrophic losses affecting coverage availability.

  • 79% rewritten

    A decline in our financial strength ratings could adversely affect our standing among cedents and broker partners and our ability to grow premiums and earnings

    Added explicit mention that A.M. Best, S&P, and Moody’s have assigned negative outlooks to our financial strength ratings.

  • 77% rewritten

    If United States tax law changes, our net income may be impacted

    Updated Base Erosion and Anti-abuse Tax timeline, changing the 12.5% rate application year from after 2024 to after 2025.

    Was: If U.S. tax law changes, our net income may be impacted

  • 57% rewritten

    We are subject to cybersecurity risks that could negatively impact our business operations

    Added the threat of rapidly evolving AI technologies increasing or intensifying potential cybersecurity risks.

  • 53% rewritten

    Regulatory and legislative developments, as well as executive orders, related to cybersecurity, privacy, data protection and AI could have an adverse impact on our business

    Updated state adoption count for the NAIC Insurance Data Security Model Law from 23 states to 28 states.

    Was: Regulatory and legislative developments related to cybersecurity, privacy, data protection and artificial intelligence could have an adverse impact on our business

  • 50% rewritten

    Decreases in pricing for property and casualty reinsurance and insurance could reduce our net income

    Maintained substantially similar language regarding property and casualty reinsurance and insurance pricing decreases.

  • 50% rewritten

    Our industry is highly competitive and rapidly evolving, and we may not be able to compete successfully in the future

    Updated S&P estimated worldwide net premium written for Top 40 global reinsurance groups from $318 billion in 2023 to $347 billion in 2024.

    Was: Our industry is highly competitive, and we may not be able to compete successfully in the future

  • 43% rewritten

    The value of our overall investment income could decline due to changed conditions in the financial markets and prevailing general economic conditions

    Was: Our investment values and investment income could decline due to changed conditions in the financial markets

  • 40% rewritten

    Insurance laws and regulations restrict our ability to operate and any failure to comply with those laws and regulations could have a material adverse effect on our business

  • 37% rewritten

    Analytical models used in decision making and estimates, assumptions and valuations in these models could vary materially from actual results, which could have an adverse impact on the financial condition, results of operations and cash flows of the Company

    Was: Analytical models used in decision making could vary materially from actual results

  • 34% rewritten

    Our operations are subject to business continuation and resiliency risk

    Was: Our operations are subject to business continuation risk

  • 34% rewritten

    We may experience foreign currency exchange losses that reduce our net income and capital levels

  • 29% rewritten

    Our business is sensitive to unanticipated levels of inflation

  • 25% rewritten

    Unfavorable loss development may adversely affect our business, financial condition, results of operations or liquidity

  • 25% rewritten

    The ownership of common shares of Group by Everest Re Advisors, Ltd., a direct subsidiary of Group, may have an impact on securing approval of shareholder proposals that Group’s management supports

  • 25% rewritten

    The failure to accurately assess underwriting risk and establish adequate premium rates could reduce our net income or result in a net loss

  • 23% rewritten

    A decline in our debt ratings could increase our borrowing costs and adversely affect our ability to access capital markets at attractive rates

All 49 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01Our results could be adversely affected by catastrophic events100% rewritten
  2. 02We are exposed to unpredictable catastrophic events, including, but not limited to, weather-related and other natural catastrophes, as well as acts of terrorism, wars, pandemics, political instability and significant cyber or operational incidentsNew
  3. 03Our losses from future catastrophic events could exceed our projections
  4. 04Unfavorable loss development may adversely affect our business, financial condition, results of operations or liquidity25% rewritten
  5. 05If we are unable to or choose not to purchase reinsurance and transfer risk to the reinsurance markets, our net income could be reduced or we could incur a net loss in the event of unusual loss experience92% rewritten
  6. 06Percentage of ceded written premiums to gross written premiums 12.4 % 13.3 % 11.5 % 11.5 % 12.3 %New
  7. 07The failure to accurately assess underwriting risk and establish adequate premium rates could reduce our net income or result in a net loss25% rewritten
  8. 08Decreases in pricing for property and casualty reinsurance and insurance could reduce our net income50% rewritten
  9. 09The effects of emerging claim and coverage issues on our business are uncertain
  10. 10A decline in our financial strength ratings could adversely affect our standing among cedents and broker partners and our ability to grow premiums and earnings79% rewritten
  11. 11A decline in our debt ratings could increase our borrowing costs and adversely affect our ability to access capital markets at attractive rates23% rewritten
  12. 12The failure of our insureds, intermediaries and reinsurers to satisfy their obligations to us could reduce our incomeNew
  13. 13The value of our overall investment income could decline due to changed conditions in the financial markets and prevailing general economic conditions43% rewritten
  14. 14The failure to maintain access to enough cash, readily salable or unencumbered financial assets to meet near-term financial obligations may adversely impact business relations and creditworthiness
  15. 15We may require additional capital or financing sources in the future, which may not be available or may be available only on unfavorable terms
  16. 16Because of our holding company structure, our ability to pay dividends, interest and principal is dependent on receiving dividends, loan payments and other funds from our subsidiaries
  17. 17We may experience foreign currency exchange losses that reduce our net income and capital levels34% rewritten
  18. 18Our business is sensitive to unanticipated levels of inflation29% rewritten
  19. 19Measures taken by domestic or foreign governments could have effects on our business
  20. 20Global economic conditions could adversely affect our business, results of operations or financial conditionNew
  21. 21We are dependent on our key personnelNew
  22. 22We are subject to cybersecurity risks that could negatively impact our business operations57% rewritten
  23. 23We are dependent on brokers and agents for business developmentsNew
  24. 24Analytical models used in decision making and estimates, assumptions and valuations in these models could vary materially from actual results, which could have an adverse impact on the financial condition, results of operations and cash flows of the Company37% rewritten
  25. 25Our operations are subject to business continuation and resiliency risk34% rewritten
  26. 26Our industry is highly competitive and rapidly evolving, and we may not be able to compete successfully in the future50% rewritten
  27. 27Business or asset acquisitions and dispositions may expose us to certain risksNew
  28. 28Applicable insurance laws may have an anti-takeover effect
  29. 29We may be subject to legal, governmental or regulatory proceedingsNew
  30. 30The ownership of common shares of Group by Everest Re Advisors, Ltd., a direct subsidiary of Group, may have an impact on securing approval of shareholder proposals that Group’s management supports25% rewritten
  31. 31Provisions in Group’s bye-laws could have an anti-takeover effect, which could diminish the value of its common shares
  32. 32iii.share ownership by any person may result in adverse tax, regulatory or legal consequences to Group, any of its subsidiaries or any other shareholder
  33. 33Investors in Group may have more difficulty in protecting their interests than investors in a U.S. corporation
  34. 34Committees of the Board of Directors
  35. 35Transactions with Significant Shareholders
  36. 36Inspection of Corporate Records
  37. 37Limitation of Liability of Directors and Officers
  38. 38Indemnification of Directors and Officers
  39. 39Enforcement of Civil Liabilities
  40. 40Insurance laws and regulations restrict our ability to operate and any failure to comply with those laws and regulations could have a material adverse effect on our business40% rewritten
  41. 41Our business is subject to certain laws and regulations relating to sanctions and foreign corrupt practices, the violation of which could adversely affect our operationsNew
  42. 42Regulatory challenges in the United States could adversely affect the ability of Bermuda Re to conduct business
  43. 43Bermuda Re may need to be licensed or admitted in additional jurisdictions to develop its business
  44. 44Bermuda Re’s ability to write reinsurance may be severely limited if it is unable to arrange for security to back its reinsurance
  45. 45Regulatory and legislative developments, as well as executive orders, related to cybersecurity, privacy, data protection and AI could have an adverse impact on our business53% rewritten
  46. 46If international tax laws change, our net income may be impacted
  47. 47If United States tax law changes, our net income may be impacted77% rewritten
  48. 48Group and/or Bermuda Re may be subject to U.S. corporate income tax, which would reduce our net income
  49. 49Group and/or Bermuda Re may become subject to Bermuda tax, which would reduce our net income

Other Everest Group 10-Ks

  • FY2024 10-K risk factors
    44 risks

    Everest Group faces primary risks from property and casualty catastrophe exposure, reserve adequacy, and global insurance pricing cycles. International regulatory compliance and investment market volatility also heavily impact operations.

    Filed Feb 27, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.