Press Release - MAY 02, 2019

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


CONTACTS:
 Scott Mangan
Associate Director
+1 908 439 2200, ext. 5593
scott.mangan@ambest.com

Steven Chirico
Director
+1 908 439 2200, ext. 5087
steven.chirico@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - MAY 02, 2019
AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” 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-” 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 categorizes as strongest, as well as its adequate operating performance, very favorable business profile and appropriate enterprise risk management (ERM) for the group’s risk profile.

The group benefits from the strongest balance sheet strength assessment, which is largely attributed to robust levels of risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio, high quality of capital and a retrocession program that helps limit downside risk. Everest also benefits from low financial leverage compared with peer companies and long-term very strong coverage metrics that enhance the group’s financial flexibility.

Everest maintains a very favorable business profile as a leading non-life reinsurer, ranking in the top 10 of AM Best’s Top 50 Global Reinsurance Groups, with particular expertise in writing property-catastrophe cover. Everest also provides additional market capacity through its Mt. Logan Re platform, as well as Kilimanjaro Re catastrophe bonds. AM Best believes that Everest’s very favorable business profile has helped the group generate profitable business under very competitive conditions.

Furthermore, Everest has posted operating performance metrics that consistently outperform its peer group despite its elevated risk profile. Despite adverse development experienced in the first half of 2018, Everest’s results were within AM Best’s expectations given the relatively high level of catastrophic activity in 2017 and 2018. AM Best believes this is attributable, at least partially, to the well-established risk management infrastructure that is embedded across the organization. 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.

The FSR of A+ (Superior) and the Long-Term ICRs of “aa-” 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 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-” on $400 million 4.868% fixed senior unsecured notes, due 2044

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

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 Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global rating agency and information provider with a unique focus on the insurance industry.


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