AM Best Affirms Credit Ratings of Everest Re Group, Ltd. and Its Subsidiaries

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” (Superior) of the operating subsidiaries of Everest Re Group, Ltd. (Bermuda) (collectively referred to as Everest). Concurrently, AM Best has affirmed the Long-Term ICRs of “a-” (Excellent) of Everest Re Group, Ltd. [NYSE: RE] and Everest Reinsurance Holdings, Inc. (Delaware). Additionally, AM Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IR) of Everest Reinsurance Holdings, Inc. The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the companies and ratings.)

The ratings reflect Everest’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, very favorable business profile and appropriate enterprise risk management for the group’s risk profile.

The ratings affirmation reflects Everest’s solid operating earnings in recent years, supported by its well-diversified book of business and substantial market share in the reinsurance industry. The group maintains a very favorable business profile as a leading non-life reinsurer, ranking 7th in the most-recent version of AM Best’s Top 15 Global Non-Life Reinsurance Groups. Everest also provides additional market capacity through its Mt. Logan Re platform and Kilimanjaro Re catastrophe bonds. Despite its historical property-catastrophe focus, Everest has grown other lines of business and continues to build out its global primary insurance segment footprint. AM Best believes that Everest’s very favorable business profile has helped the group generate profitable business under very competitive conditions and will also allow it to continue to capitalize on the current hard market and beyond.

AM Best’s assessment of Everest’s balance sheet strength at the strongest level is attributed to the group’s robust levels of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), on a standard and stressed basis. Everest has been able to bolster capital levels in 2023, despite relatively constrained debt and equity markets, to support growth opportunities in hardening markets. These positive factors are somewhat offset by reserve strengthening over the prior five-year period, which will continue to be closely monitored as the group grows.

The FSR of A+ (Superior) and the Long-Term ICRs of “aa-” (Superior) have been affirmed for the following reinsurance and insurance subsidiaries of Everest Re Group, Ltd.:

• Everest Reinsurance (Bermuda), Ltd.
  
• Everest Reinsurance Company

• Everest International Reinsurance, Ltd.

• Everest Reinsurance Company (Ireland), Designated Activity Company
• Everest Insurance (Ireland) Designated Activity Company

• Everest National Insurance Company

• Everest Indemnity Insurance Company

• Everest Security Insurance Company

• Everest Insurance Company of Canada

• Everest International Assurance Ltd.

• Everest Denali Insurance Company

• Everest Premier Insurance Company

The following Long-Term IRs have been affirmed:

Everest Reinsurance Holdings, Inc.—

-- “a-” (Excellent) on $400 million 4.868% fixed senior unsecured notes, due 2044

-- “bbb” (Good) on $400 million 6.6% fixed-to-floating long-term junior subordinated notes, due 2067

-- “a-” (Excellent) on $1 billion 3.5% senior unsecured notes, due 2050

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Dan Hofmeister, CFA, FRM, CAIA

Senior Financial Analyst

+1 908 882 1893

dan.hofmeister@ambest.com

Carlos Wong-Fupuy

Senior Director

+1 908 882 2438

carlos.wong-fupuy@ambest.com

Christopher Sharkey
Associate Director, Public Relations

+1 908 882 2310

christopher.sharkey@ambest.com

Al Slavin
Senior Public Relations Specialist

+1 908 882 2318

al.slavin@ambest.com

Source: AM Best