AM Best Affirms Credit Ratings of Everest Re Group, Ltd. and Its Subsidiaries
May 29 2020 - 9:34AM
Business Wire
AM Best has affirmed the Financial Strength Rating (FSR)
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.)
At the same time, AM Best has assigned an FSR of A+ (Superior)
and a Long-Term ICR of “aa-” to Everest Insurance (Ireland)
Designated Activity Company (Ireland), which is now an operating
subsidiary of Everest. The outlook assigned to these ratings is
stable.
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 for the group’s risk profile.
AM Best’s assessment of Everest’s balance sheet strength as
strongest is attributed to the group’s robust levels of
risk-adjusted capitalization, as measured by Best’s Capital
Adequacy Ratio (BCAR), on a standard and stressed basis. Also
reflected in the group’s balance sheet strength assessment is
Everest’s 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.
The group 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, and Kilimanjaro Re
catastrophe bonds. Despite its historical property-catastrophe
predominance, Everest has grown in more attritional lines of
business and has continued to build out its insurance segment’s
footprint in recent years. AM Best believes that Everest’s very
favorable 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 its elevated risk
profile and exposure to shock loss events. AM Best believes
Everest’s performance is partially attributable to its
well-established risk management infrastructure, which 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. Everest’s
insurance segment has begun to show underwriting profitability,
which can provide meaningful earnings diversification.
Rating factors that could lead to a positive outlook or rating
upgrade include the continuation of long-term, consistently strong
operating profitability relative to peers and maintaining the
strongest level of risk-adjusted capital. Factors that could lead
to negative rating actions include deteriorating trends in
operating profitability, outsized catastrophe or investment losses
relative to peers and/or AM Best’s expectations, significant
adverse loss reserve development, and/or a material decline in
risk-adjusted capital at the group's insurance operating
companies.
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 Guide to 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 credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in New York, London,
Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more
information, visit www.ambest.com.
Copyright © 2020 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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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
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