Best’s News & Research Service - October 29, 2025 05:31 PM (EDT)
AM Best Revises Outlooks to Negative for Compañía de Seguros Generales Everest Mexico, S.A. de C.V.
- October 29, 2025 05:31 PM (EDT)
//BestWire// - AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” (Superior) of Compañía de Seguros Generales Everest Mexico, S.A. de C.V. (Everest Mexico) (Mexico City, Mexico). Concurrently, AM Best has affirmed the National Scale Rating (NSR) of “aaa.MX” (Exceptional). The outlook of the NSR is stable.
Everest Mexico is a member of Everest Group, Ltd. (Everest), which on a consolidated basis has a balance sheet strength that AM Best assesses as strongest, as well as adequate operating performance, a very favorable business profile and appropriate enterprise risk management (ERM).
The revised outlooks to negative from stable reflect elevated uncertainty surrounding the group’s business profile and ERM capabilities, in the wake of Everest’s third-quarter reserve charges of $478 million that were related primarily to its retail commercial insurance business. AM Best notes that this represents Everest’s second material reserve charge in the past 12 months, following $1.5 billion of adverse development reported in the fourth quarter of 2024, which also was largely driven by the group’s retail commercial portfolio. Everest concurrently announced the sale of its retail commercial book of business through a renewal rights transaction with American International Group, Inc., as well as the signing of an adverse development cover on this book of business for accident years 2024 and prior.
In AM Best’s view, the addition of an adverse development cover and the sale of the retail commercial insurance business provides more confidence that Everest’s prospective performance will return to historically stronger levels. The negative outlooks, nevertheless, reflect heightened operational risk as the group shifts its strategy to focus exclusively on its reinsurance and global specialty insurance segments, which together comprise more than 80% of the group’s business and have performed very well historically. An emergence of adverse development in Everest’s remaining business lines, or challenges resulting from restructuring the current group to realign with its new focus, could increase negative pressure on the group’s ratings in the near term.
The methodology used in determining these ratings is Best’s Credit Rating Methodology (Version Aug. 29, 2024), which provides a comprehensive explanation of AM Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
- Best’s National Scale Ratings (Version July 31, 2025)
- Scoring and Assessing Innovation (Version Feb. 20, 2025)
- Catastrophe Analysis in AM Best Ratings (Version Feb. 8, 2024)
- Available Capital and Insurance Holding Company Analysis (Version Sept. 18, 2025)
- Evaluating Mortgage Insurance (Version March 14, 2024)
- Understanding Global BCAR (Version Sept. 18, 2025)
View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, relevant sources of information and the frequency for updating ratings, please refer to Guide to Best’s Credit Ratings.
- Previous Rating Date: Sept. 12, 2025
- Initial Rating Date: Oct. 18, 2024
- Date Range of Financial Data Used: Dec. 31, 2023-Sept. 30, 2025
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