Everest Group, Ltd. (EG) Cash Flow Statement

Operating cash flow has been consistently positive, ranging from $290M in 2026Q2 to $1.5B in 2025Q3, even as net income swung to a loss in 2024Q4. This suggests that premium inflows continue to outpace claims paid, providing a stable source of investable float. The dip in 2026Q2 OCF/NI to 0.52 may reflect timing of claims payments or changes in working capital, but the overall trend supports the reinsurer's ability to generate cash from underwriting.

The quarterly claims paid figures have been substantial, averaging $3.4B over the past year, with a notable spike to $5.1B in 2024Q4, coinciding with the reported net loss. This pattern may indicate that Everest is paying out claims faster than it is recognizing losses, which could be a sign of prudent reserve management or a response to catastrophe events. Investors should monitor whether this trend persists, as it could pressure future cash flows if claims inflation accelerates.

The data shows significant gross activity, with purchases and sales often exceeding $2B per quarter, but net flows have been modest. For instance, in 2025Q4, purchases were $2.5B and sales $2.7B, resulting in a net sale of $200M. This suggests Everest is actively managing its fixed-income portfolio to optimize yields, possibly in response to interest rate expectations. The lack of realized gains or losses in the cash flow statement obscures the impact on earnings, but the churn indicates a dynamic investment strategy.

The combination of dividends and buybacks has consistently exceeded operating cash flow in several quarters, notably in 2026Q2 and 2025Q4. This suggests that Everest is willing to dip into its investment portfolio or cash balances to maintain shareholder returns, which may be sustainable given its large investment portfolio but warrants monitoring if underwriting cash generation weakens. The buyback activity has been variable, with a notable $353M repurchase in 2026Q2, indicating opportunistic capital management.

The wide fluctuations in OCF/NI, from 5.72 in 2025Q3 to -0.74 in 2025Q4, highlight the disconnect between net income and cash flows, likely due to non-cash items such as reserve releases or investment gains. In 2025Q4, Everest reported a net income of $446M but negative operating cash flow of -$330M, suggesting that earnings were supported by non-cash accruals. This pattern underscores the importance of analyzing cash flows to assess the sustainability of earnings, especially given the prior income statement analysis pointing to reserve releases boosting results.