AM Best Affirms Credit Ratings of Everest Re Group, Ltd. and Its Subsidiaries

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.)

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 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 7th in the most recent version of AM Best’s Top 15 Global Non-Life Reinsurance Groups. Everest also provides additional market capacity through its Mt. Logan Re platform, and Kilimanjaro Re catastrophe bonds. Despite its historical property-catastrophe focus, Everest has grown in other lines of business and has continued to build out its primary insurance segment 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.

Positive rating movement is unlikely in the near term. Rating factors that could lead to negative rating actions include deteriorating trends in operating profitability or outsized catastrophe or investment losses relative to peers and/or AM Best expectations.

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 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:

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

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

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