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
Concurrently, AM Best has affirmed the Long-Term ICRs of 'a-' of
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
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
The following Long-Term IRs have been affirmed:
'a-' on
'bbb' on
'a-' on
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