A.M. Best Co. has affirmed the financial strength rating of A+ (superior) and issuer credit ratings of "aa-" of the reinsurance and insurance subsidiaries of Bermuda-based Everest Re Group Ltd. The outlook for all ratings is stable.

A statement from the ratings agency yesterday said Everest Re's ratings reflect its strong risk-adjusted capitalisation, very strong long-term operating performance and excellent market profile as a leading global reinsurance franchise.

"Also, Everest Re's success factors include diversification with regard to product lines, geography and distribution," Best said. "The group also benefits from a strong and stable management team and has demonstrated success with regard to allocating capital to profitable business lines throughout phases of the reinsurance pricing cycle."

Best added that Everest Re had successfully managed market cycles and unforeseen events as its 10-year average return on equity approximates 12 percent.