A.M. Best Affirms Credit Ratings of Everest Re Group, Ltd. and Its Subsidiaries
March 16 2018 - 1:01PM
Business Wire
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.:
- 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 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.
A.M. Best is the world’s oldest and most authoritative
insurance rating and information source. For more information,
visit www.ambest.com.
Copyright © 2018 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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version on businesswire.com: http://www.businesswire.com/news/home/20180316005614/en/
A.M. BestScott Mangan, +1 908-439-2200, ext. 5593Senior
Financial Analystscott.mangan@ambest.comorChristopher Sharkey, +1
908-439-2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorSteven Chirico, +1
908-439-2200, ext. 5087Directorsteven.chirico@ambest.comorJim
Peavy, +1 908-439-2200, ext. 5644Director, Public
Relationsjames.peavy@ambest.com
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