AM Best Revises Outlooks to Negative for Everest Group, Ltd. and Its Subsidiaries

OLDWICK, N.J.--(BUSINESS WIRE)--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 the operating subsidiaries of Everest Group, Ltd. (Bermuda) (collectively referred to as Everest). Concurrently, AM Best has revised the outlooks to negative from stable and affirmed the Long-Term ICRs of “a-” (Excellent) of Everest Group, Ltd. and Everest Reinsurance Holdings, Inc. (Delaware). Lastly, AM Best has revised the outlooks to negative from stable and affirmed the Long-Term Issue Credit Ratings (Long-Term IRs) of Everest Reinsurance Holdings, Inc. (See below for a detailed listing of the companies and Credit Ratings [ratings].)

The ratings reflect Everest’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, 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.

AM Best has revised the outlooks to negative from stable and affirmed the FSR of A+ (Superior) and the Long-Term ICRs of “aa-” (Superior) for the following reinsurance and insurance subsidiaries of Everest Group, Ltd.:

• Everest Reinsurance (Bermuda), Ltd.
• Everest Reinsurance Company
• Everest International Reinsurance, Ltd.
• Everest Reinsurance Company (Ireland), Designated Activity Company
• Everest Insurance (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 with revised outlooks to negative from stable.

Everest Reinsurance Holdings, Inc.—

-- “a-” (Excellent) on $400 million 4.868% fixed senior unsecured notes, due 2044
-- “bbb” (Good) on $400 million 6.6% fixed-to-floating long-term junior subordinated notes, due 2067
-- “a-” (Excellent) on $1 billion 3.5% senior unsecured notes, due 2050

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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