AM Best has affirmed the financial strength rating of A+ (Superior) and the long-term issuer credit ratings of “aa-” (Superior) of the operating subsidiaries of Bermudian-based Everest Re Group Ltd.

Concurrently, AM Best has affirmed the long-term ICRs of “a-” (Excellent) of Everest Re Group Ltd and Everest Reinsurance Holdings Inc of Delaware.

Additionally, AM Best has affirmed the long-term issue credit ratings of Everest Reinsurance Holdings Inc.

The outlook of these credit 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 favourable business profile and appropriate enterprise risk management for the group’s risk profile.

The ratings affirmation reflects Everest’s solid operating earnings in recent years, supported by its well-diversified book of business and substantial market share in the reinsurance industry.

The group maintains a very favourable business profile as a leading non-life reinsurer, ranking seventh in the most recent version of AM Best’s Top 15 Global Non-Life Reinsurance Groups.

Everest also provides additional market capacity through its Mt Logan Re platform and Kilimanjaro Re catastrophe bonds.

Despite its historical property-catastrophe focus, Everest has grown other lines of business and continues to build out its global primary insurance segment footprint.

AM Best believes that Everest’s very favourable business profile has helped the group generate profitable business under very competitive conditions and will also allow it to continue to capitalise on the current hard market and beyond.

AM Best’s assessment of Everest’s balance sheet strength at the strongest level is attributed to the group’s robust levels of risk-adjusted capitalisation, as measured by Best’s capital adequacy ratio, on a standard and stressed basis.

Everest has been able to bolster capital levels in 2023, despite relatively constrained debt and equity markets, to support growth opportunities in hardening markets. These positive factors are somewhat offset by reserve strengthening over the prior five-year period, which will continue to be closely monitored as the group grows.