top rating by one of America's leading stock watchers.

The move comes after the final phase of restructuring of the company has been completed, including the re domestication of the public holding company to Bermuda and the creation the new Bermuda-based reinsurance company Everest Reinsurance (Bermuda) Ltd.

A.M. Best Co., the world's oldest ratings agent, has affirmed the A plus (superior) financial strength rating not only of Everest Reinsurance Co. but also its four affiliates--Everest National Insurance Co., Everest Indemnity Insurance Co., Everest Insurance Company of Canada and Southeastern Security Insurance Co.

A.M. Best has now extended the rating to the group's newly formed Bermuda affiliate, Everest Reinsurance (Bermuda) Ltd., recognising its strategic role as a member of the group providing complementary offshore capacity as well as the explicit capital commitment of the parent.

A.M. Best also affirmed the "a'' senior debt rating of the unsecured debt obligations issued by Everest Reinsurance Holdings, Inc., the intermediate US holding company of the Everest Re Group, Ltd.

This rating action follows the completion of the final phase of the group's restructuring plan.

In addition, the group, through its intermediate US holding company, completed its announced acquisition of Gibraltar Casualty Insurance Co., the run-off operation of Prudential Insurance Company.

Gibraltar had been used to provide the stop-loss cover initially established with Everest Re's IPO in 1995.

Through an arms-length loss portfolio transaction, Gibraltar, which has been renamed Mt. McKinley Insurance Company, has since transferred its net liabilities to Everest Reinsurance (Bermuda) Ltd., whose operations are best suited to optimise the group's return on the underlying portfolio.

A.M. Best said it is modestly concerned with the group's assumption of the Gibraltar liabilities and the discontinuance of the Prudential Guarantee, but said the associated reserves at Gibraltar have been significantly strengthened over the past eighteen months.

In addition, Best said the transaction includes a $200 million stop-loss cover provided by the Prudential, attaching at Gibraltar's carried reserve position.

Best said the group's ratings reflect its strong operating performance, franchise value, conservative but effective investment portfolio and moderate financial leverage, well supported by its debt-service capabilities.

A.M. Best said it notes the group's improved operating profitability is driven by management's disciplined underwriting, conservative exposure management and favourable expense platform.

These strengths are partially offset by the challenges the group faces from a highly competitive reinsurance market and its start-up operation in Bermuda.

In addition, the substantial re-underwriting process initiated in 1994 creates some reserve risk associated with the limited seasoning of its book of business.