AM Best has revised its outlook on Bermudian-based Everest Group Ltd and its subsidiaries to negative from stable, citing continued uncertainty following nearly $2 billion in reserve charges over the past year.

The credit rating agency affirmed Everest’s financial strength rating of A+ (Superior) and long-term issuer credit rating of “aa-” (Superior) for its main reinsurance and insurance units, including Everest Reinsurance (Bermuda) Ltd.

The parent company, Everest Group Ltd, and Everest Reinsurance Holdings, Inc retained their “a-” (Excellent) long-term ratings.

AM Best said the negative outlook reflects “elevated uncertainty” surrounding Everest’s business profile and risk management, following a $478 million third-quarter reserve charge tied mainly to its retail commercial insurance portfolio. That follows $1.5 billion in adverse reserve development reported in the fourth quarter of 2024, also from the same segment.

To address these challenges, Everest announced the sale of its retail commercial book to American International Group, Inc through a renewal rights transaction, along with an adverse development cover for losses from 2024 and prior years.

AM Best noted that these moves could stabilise future performance, but warned of “heightened operational risk” as Everest pivots towards its core reinsurance and global speciality insurance businesses, which together account for more than 80 per cent of its operations.

Further reserve issues or difficulties tied to the restructuring could put additional downward pressure on Everest’s ratings, the agency said.

Everest Group's earnings report for the third quarter of 2025 indicated a major decrease in profits compared to the previous year. The company's net income for the quarter was $255 million, down from $509 million in the same period of 2024. The company attributed the decline to a ballooning combined ratio for the insurance segment and net unfavourable reserve development.

The agency also affirmed with negative outlook the senior unsecured and subordinated debt ratings of Everest Reinsurance Holdings, Inc, including its $1 billion senior notes due 2050 and $400 million subordinated notes due 2067.