AM Best Comments on Credit Ratings of The Wawanesa Mutual Insurance Company Following Announced Acquisition of Everest Insurance Company of Canada

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has commented that the Credit Ratings (ratings) of The Wawanesa Mutual Insurance Company (Wawanesa Mutual) (Winnipeg, Manitoba, Canada) remain unchanged following its announcement to acquire Everest Insurance Company of Canada (Everest Canada) (Toronto, Ontario, Canada), the Canadian retail insurance operations of Everest Group, Ltd. (Everest Group) (Bermuda) [NYSE: EG].

The acquisition is expected to strengthen and diversify Wawanesa Mutual’s business profile in commercial insurance as Everest Canada brings a diversified property/casualty book that includes programs, commercial property and casualty, financial lines and specialty lines. The specialty and financial lines segments, which represents approximately 20% of Everest Canada’s premiums, includes cyber, aviation, marine and professional liability; these will be new markets for Wawanesa Mutual. The transaction is expected to add approximately $305 million of direct premiums, which is roughly 8% of Wawanesa Mutual’s consolidated premiums. From a commercial lines perspective, this will result in an increase of roughly 30% to Wawanesa Mutual’s current volume and will be especially accretive to the program business segment, which comprises about half of the acquired book of business and currently represents 20% of Wawanesa Mutual’s total commercial lines portfolio. The transaction also expands the company’s geographic presence in Ontario and Quebec and increases its exposure to large commercial lines customers.

The transaction is modest in scale and provides opportunities to broaden the business profile but is not expected to meaningfully affect balance sheet strength nor operating performance in the near to midterm. Everest Group will not retain the primary insurance business of Everest Canada following closing; however, legacy insurance risk will remain within the group through a loss portfolio transfer (LPT). Everest Canada will enter into an LPT with Everest Reinsurance Company covering all preclosing policies, transferring the associated legacy loss exposure, while Everest Canada will continue to administer the claims. The transaction is expected to close in the fourth quarter of 2026, subject to customary regulatory approvals.

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.