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FOR IMMEDIATE RELEASE
OLDWICK - MARCH 16, 2018 12:31 PM (EDT)
A.M. 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, A.M. Best has affirmed the Long-Term ICRs of “a-” of Everest Re Group, Ltd. [NYSE: RE] and Everest Reinsurance Holdings, Inc. (Delaware). Additionally, A.M. 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 A.M. 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, high quality of capital and a retrocession program that helps limit downside risk. Everest also benefits from low financial leverage and 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 A.M. 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 underwriting Kilimanjaro Re catastrophe bonds.
Furthermore, Everest has consistently posted operating performance metrics that outperform its peer group, and despite its elevated risk profile, produced positive net income and a modest underwriting loss in 2017 – a year that saw a significant level of catastrophic activity. A.M. Best believes this is at least partially attributed to a 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.:
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 A.M. 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 A.M. 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 A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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