Everest Group Faces Securities Probe Over $478M Reserve Hit and 12.4-Point Ratio Jump
Johnson Fistel is investigating Everest Group’s executive officers for federal securities violations after the insurer disclosed $478 million in unfavorable reserve development that pushed its combined ratio up 12.4 points. The announcement followed a third-quarter financial report that led the stock to close at $304.91, down $39.07 or 11.36%.
1. Investigation Launch
Johnson Fistel has initiated an inquiry into Everest Group’s executive officers to determine if representations made in financial disclosures violated federal securities laws and whether investor losses can be reclaimed.
2. Triggering Disclosure
On October 27, 2025, Everest reported third-quarter results revealing a $478 million unfavorable development in prior-year loss reserves, driving its combined ratio up by 12.4 points.
3. Stock Reaction
Following the reserve adjustment disclosure, Everest’s shares closed at $304.91 on October 28, 2025, marking an $39.07 drop or 11.36% decline from the previous trading day.