A.M. Best Affirms Ratings of Everest
A.M. Best Co. has affirmed the financial strength rating of A+ (Superior) and issuer credit ratings (ICR) of “aa-” of Everest Re Group Ltd.’s (Everest Re) (Bermuda) reinsurance and insurance subsidiaries.
Concurrently, A.M. Best has affirmed the ICRs of “a-” of Everest Re and Everest Reinsurance Holdings Inc. (Delaware). A.M. Best also has affirmed the debt ratings of Everest Re, Everest Reinsurance Holdings Inc., Everest Capital Trust II and Everest Capital Trust III. The outlook for all ratings is stable.
A statement issued said, “The ratings reflect Everest Re’s consistently superior risk-adjusted capital position, long-term track record of generating favorable earnings and market profile as a leading global provider of insurance and reinsurance products. Given its conservative financial leverage measures, Everest Re maintains strong financial flexibility with the ability to effectively manage its capital through market cycles.”
“This is evident by Everest Re’s five-year average combined ratio, which is below break-even, representing underwriting profitability. Cash flows from operations also have been consistently strong. Everest Re’s balance sheet is supported by its conservative investment strategy with the current investment portfolio held at a shorter duration, and equities at less than 10% of total investments.”
“A.M. Best believes that Everest Re has maintained strong traditional risk management capabilities and has established an enterprise risk management framework that effectively identifies, measures and monitors existing and emerging risks across its respective businesses and enables the efficient allocation of capital.”
