EG · 10-Q · 2026Q3 · Full report
Legacy Reserve Runoff
EVEREST GROUP, LTD. · 2026-10-30 · Importance 56 · Surprise 46 · In source text
Legacy net reserves for losses and LAE before the impact of adverse development cover declined to $5.9 billion at September 30, 2026, from $6.3 billion at December 31, 2025, reflecting earned premium runoff and settlement of existing liabilities. Legacy incurred losses and LAE fell 78.9% to $186 million in the third quarter and 56.2% to $755 million for the first nine months, largely because 2025 included substantial U.S. casualty reserve strengthening. Nine-month current-year attritional losses decreased $509 million and prior-year attritional losses decreased $461 million; the segment’s gross reserves were $7.8 billion at September 30, 2026.
Key facts
- Legacy incurred losses and LAE decreased 56.2% to $755 million for the nine months ended September 30, 2026, from $1.7 billion in 2025. source
- Legacy incurred losses and LAE decreased 78.9% to $186 million for the third quarter of 2026 from $882 million in 2025. source
- Third-quarter net unfavorable development on prior-year attritional losses decreased $173 million, primarily reflecting a $461 million decrease in Legacy and $5 million in Global Wholesale & Specialty, partly offset by a $293 million increase in Reinsurance Treaty. source
- Nine-month net unfavorable development on prior-year attritional losses decreased $230 million, primarily reflecting $461 million from Legacy and $13 million from Global Wholesale & Specialty, partly offset by $244 million from Reinsurance Treaty. source
- Everest's net three-year asbestos survival ratio was 3.6 years at September 30, 2026, compared with 4.7 years at December 31, 2025. source
- In the third quarter of 2026, Everest introduced net reserve for losses and LAE before ADC as the Legacy segment performance measure. source
- Everest introduced net reserve for losses and LAE before ADC as the Legacy segment performance measure beginning in the third quarter of 2026, and reflected the change retrospectively. source
- Legacy net reserves for losses and LAE before ADC decreased to $5.9 billion at September 30, 2026, from $6.3 billion at December 31, 2025, reflecting lower earned premiums and settlement of existing liabilities. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +25.4% | Legacy incurred losses and LAE decreased 56.2% to $755 million for the nine months ended September 30, 2026, from $1.7 billion in 2025. |
| operating_income | positive | realized | +4.7% | Third-quarter net unfavorable development on prior-year attritional losses decreased $173 million, primarily reflecting a $461 million… |