Sunday Scoop: Tracy's Treasure Trove/EG GAAP Loss Triangle Review

研报英文原文证据摘录

Sunday Scoop: Tracy's Treasure Trove/EG GAAP Loss Triangle Review

Nonlife Insurance

EVEREST GROUP, LTD. (EG) June 7, 2026

Sunday Scoop: Tracy's Treasure Trove/EG GAAP Loss Rating:

Triangle Review Peer Perform

Price:

Earlier this week, EG filed an 8-K, recasting its 2025 annual report to reflect its $319.50

new segmentation (Reinsurance Treaty, Global Wholesale & Specialty, and Legacy). Price Target:

NAWe've conducted a deep dive into EG's reserves, now that there is visibility into its

reserves under its new segmentation. Source: FactSet, Wolfe Research

Priced as of 06/04/26

Highlights:

●EG's IBNR to Total Reserves Are Higher y/y (non-legacy) - More Conservative

●EG gave up a smaller proportion of its good "in the money" reserves to pay for

the ADC.

Tracy Benguigui

Lowlights: tbenguigui@wolferesearch.com

●$399mn of CY25 reserve strengthening in Reinsurance Treaty - Casualty. We (646) 419-2560

View Tracy’s Research question the adequacy of reinsurance casualty reserves which have no ADC View EG Model

protection (unlike Insurance with ADC protection). View Comp Table

●Reformed insurer on a massive run-off balance sheet: EG's legacy reserves Dean Criscitiello

are 2.5x larger than GW&S (ex facultative) reserves. Typically, insurers' hold dcriscitiello@wolferesearch.com 646-419-2562

a smaller proportion of run-off reserves relative to their ongoing business. As

such, the bulk of EG's ADC with Longtail Re protects legacy (former "other" and

retail) reserves, followed by GW&S. Despite the ADC in place, we believe EG’s

valuation should still embed this structural imbalance, justifying its discounted

P/B multiple vs. peers.

●Casualty Paid LDFs have generally risen from COVID-era lows. Reserves could

be under pressure if we do not see a normalization of this trend. EG is not