EG · 10-Q · 2026Q3 · Full report
Operating Expense Trends
EVEREST GROUP, LTD. · 2026-10-30 · Importance 46 · Surprise 30 · No source text
Commission, brokerage, taxes and fees decreased 8.1% to $2.386 billion for the nine months ended September 30, 2026, mainly because Reinsurance Treaty costs fell $180 million and Legacy costs fell $37 million. Other underwriting expenses declined 14.5% to $641 million, including a $149 million (46.0%) decrease in Legacy, partly offset by increases in Global Wholesale & Specialty and Reinsurance Treaty. Corporate expenses increased to $101 million from $79 million for the nine months, driven by professional-service fees for corporate initiatives and higher incentive and equity compensation costs. Acquisition, divestiture and restructuring expense was $127 million for the nine months, including $116 million related to sale of commercial retail renewal rights.
Key facts
- Reinsurance Treaty commission and brokerage expense decreased 17.2% to $572 million for the three months ended September 30, 2026, from $692 million in 2025; its expense ratio decreased 1.3 points. source
- Reinsurance Treaty commission and brokerage expense decreased 8.9% to $1.8 billion for the nine months ended September 30, 2026, from $2.0 billion in 2025; its expense ratio decreased 0.1 points. source
- Other underwriting expenses decreased 22.4% to $200 million for the third quarter of 2026 from $258 million in 2025. source
- Nine-month other underwriting expenses decreased $149 million, or 46.0%, in Legacy, partly offset by increases of $28 million, or 11.8%, in Global Wholesale & Specialty and $12 million, or 6.3%, in Reinsurance Treaty. source
- Third-quarter other underwriting expenses decreased $59 million, or 56.0%, in Legacy and $2 million, or 2.1%, in Global Wholesale & Specialty, partly offset by a $3 million, or 4.8%, increase in Reinsurance Treaty. source
- Reinsurance Treaty other underwriting expenses increased 6.3% to $197 million for the nine months ended September 30, 2026, from $186 million in 2025; the expense ratio increased 0.4 points. source
- Nine-month other underwriting expenses decreased 14.5% to $641 million from $750 million. source
- Reinsurance Treaty other underwriting expenses increased 4.8% to $65 million in the third quarter of 2026 from $62 million in 2025; the expense ratio increased 0.5 points. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +4.0% | Nine-month other underwriting expenses decreased $149 million, or 46.0%, in Legacy, partly offset by increases of $28 million, or 11.8%,… |
| operating_income | positive | realized | +3.2% | Reinsurance Treaty commission and brokerage expense decreased 17.2% to $572 million for the three months ended September 30, 2026, from… |
| operating_income | positive | realized | +1.6% | Other underwriting expenses decreased 22.4% to $200 million for the third quarter of 2026 from $258 million in 2025. |
| margin | negative | realized | -0.4% | Reinsurance Treaty other underwriting expenses increased 6.3% to $197 million for the nine months ended September 30, 2026, from $186… |
| operating_income | negative | realized | -0.3% | Reinsurance Treaty other underwriting expenses increased 6.3% to $197 million for the nine months ended September 30, 2026, from $186… |
| margin | positive | realized | +0.1% | Reinsurance Treaty commission and brokerage expense decreased 8.9% to $1.8 billion for the nine months ended September 30, 2026, from $2.0… |