By Bernews8
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AM Best Affirms Everest Group Credit Ratings
AM Best has 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]
The ratings agency said, “Concurrently, AM Best has affirmed the Long-Term ICRs of “a-” [Excellent] of Everest Group, Ltd. 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.
“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.
“The rating affirmations reflect Everest’s strong underwriting diversification, which has softened the impact of casualty reserve strengthening actions in recent years. Despite roughly $1.5 billion in prior-year reserve strengthening in 2024, Everest reported a return on equity of 9.6% for the year, driven by strong reinsurance underwriting profits and investment performance that more than offset poor results in the company’s primary business. The reserve strengthening primarily is related to primary casualty business, for which the management team has implemented various corrective actions to improve prospective performance. AM Best does not expect these actions to have a material impact on the group’s business profile in the intermediate term, although progress will be monitored closely for any potential deterioration.”
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Category: All, Business
