AM Best Assign Ratings To Everest International

December 18, 2015

A.M. Best has assigned a financial strength rating of A+ [Superior] and an issuer credit rating of “aa-” to Everest International Assurance Ltd. [EIA] [Bermuda], which is a subsidiary of Everest Re Group, Ltd and affiliated with Everest Reinsurance [Bermuda], Ltd.The outlook assigned to both ratings is stable.

A statement from the ratings agency said, “The ratings reflect the company’s solid risk-adjusted capitalization and expectations that its business plan is achievable. EIA is strategically important for Everest Re Group Ltd. as it serves to access life and property and casualty business in the Latin America market. EIA benefits from internal reinsurance protection as the company plans to cede 100% of its underwriting exposures to affiliates. It is anticipated that this entity will be risk managed in the same manner as the rest of the organization.

“Partially offsetting these factors are the inherent risks associated with a start-up company. These risks are somewhat mitigated as EIA is part of a globally recognized brand that has deep operational resources. EIA also benefits by being able to access the Everest organization’s existing client base.

“Positive rating actions could result if EIA and Everest Re meet or exceed their business plans over the long-term, which includes consistently strong operating results while maintaining strong risk-adjusted capitalization. Negative rating actions could occur if EIA or Everest Re’s operating performance is volatile or suffers an outsized loss, whether it be from underwriting or investing, or if risk-adjusted capitalization becomes strained. Negative rating actions could also occur if the reinsurance support diminishes.”

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