Everest Re Group maintains strength ratings
AM Best has affirmed the financial strength rating of A+ (Superior) and the long-term issuer credit ratings of “aa-” (Superior) of the operating subsidiaries of Bermudian-based Everest Re Group Ltd.
Those subsidiaries include Everest Reinsurance (Bermuda) Ltd.
Concurrently, AM Best has affirmed the long-term ICRs of “a-” (Excellent) of Everest Re Group Ltd and Delaware-based Everest Reinsurance Holdings Inc.
Additionally, AM Best has affirmed the long-term issue credit ratings of Everest Reinsurance Holdings Inc.
The outlook of these credit ratings is stable.
The agency said the ratings reflected Everest’s balance sheet strength, which AM Best assessed as strongest, as well as its adequate operating performance, very favourable business profile and appropriate enterprise risk management for the group’s risk profile.
AM Best’s assessment of Everest’s balance sheet strength as strongest is attributed to the group’s levels of risk-adjusted capitalisation, as measured by Best’s capital adequacy ratio. Also reflected in the group’s balance sheet strength assessment is Everest’s high quality of capital and a retrocession programme that helps limit downside risk.
The agency said the group maintained a very favourable business profile as a leading non-life reinsurer, ranking No. 7 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 in other lines of business and has continued to build out its primary insurance segment footprint.
AM Best believes that Everest’s very favourable business profile has helped the group generate profitable business under very competitive conditions.
Everest has produced operating performance metrics that consistently outperform its peer group despite exposure to shock loss events as it continues to shift to a lower volatility risk profile.
AM Best believes Everest’s performance is partially attributable to its well-established risk management infrastructure, which is embedded across the organisation.
Everest also benefits from a relatively low expense ratio that allows the group to absorb more readily significant losses compared with many of its peers. Everest’s insurance segment has provided meaningful earnings diversification.
Positive rating movement is unlikely in the near term. Rating factors that could lead to negative rating actions include deteriorating trends in operating profitability or outsized catastrophe or investment losses relative to peers and/or AM Best expectations.
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, and Everest Premier Insurance Company.