AM Best Affirms Credit Ratings of Everest Re Group, Ltd. and Its Subsidiaries

OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of A+
(Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of
“aa-” of the operating subsidiaries of Everest Re Group, Ltd. (Bermuda)
(collectively referred to as Everest). Concurrently, AM Best has
affirmed the Long-Term ICRs of “a-” of Everest Re Group, Ltd. [NYSE:RE]
and Everest Reinsurance Holdings, Inc. (Delaware). Additionally, AM Best
has affirmed the Long-Term Issue Credit Ratings (Long-Term IR) of
Everest Reinsurance Holdings, Inc. The outlook of these Credit Ratings
(ratings) is stable. (See below for a detailed listing of the companies
and ratings.)

The ratings reflect Everest’s balance sheet strength, which AM Best
categorizes as strongest, as well as its adequate operating performance,
very favorable business profile and appropriate enterprise risk
management (ERM) for the group’s risk profile.

The group benefits from the strongest balance sheet strength assessment,
which is largely attributed to robust levels of risk-adjusted
capitalization as measured by Best’s Capital Adequacy Ratio, 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.

Everest maintains a very favorable business profile as a leading
non-life reinsurer, ranking in the top 10 of AM Best’s Top 50 Global
Reinsurance Groups, with particular expertise in writing
property-catastrophe cover. Everest also provides additional market
capacity through its Mt. Logan Re platform, as well as Kilimanjaro Re
catastrophe bonds. AM Best believes that Everest’s very favorable
business profile has helped the group generate profitable business under
very competitive conditions.

Furthermore, Everest has posted operating performance metrics that
consistently outperform its peer group despite its elevated risk
profile. Despite adverse development experienced in the first half of
2018, Everest’s results were within AM Best’s expectations given the
relatively high level of catastrophic activity in 2017 and 2018. AM Best
believes this is attributable, at least partially, to the
well-established risk management infrastructure that 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.

The FSR of A+ (Superior) and the Long-Term ICRs of “aa-” have been
affirmed for the following reinsurance and insurance subsidiaries of
Everest Re Group, Ltd.:

• Everest Reinsurance (Bermuda), Ltd.
• Everest Reinsurance Company
• Everest International Reinsurance, Ltd.
• Everest Reinsurance Company (Ireland), Designated Activity Company
• Everest National Insurance Company
• Everest Indemnity Insurance Company
• Everest Security Insurance Company
• Everest Insurance Company of Canada
• Everest International Assurance Ltd.
• Everest Denali Insurance Company
• Everest Premier Insurance Company

The following Long-Term IRs have been affirmed:

Everest
Reinsurance Holdings, Inc.—
— “a-” on $400 million 4.868% fixed
senior unsecured notes, due 2044
— “bbb” on $400 million 6.6%
fixed-to-floating long-term junior subordinated notes, due 2067

This press release relates to Credit Ratings that have been published
on AM Best’s website. For all rating information relating to the release
and pertinent disclosures, including details of the office responsible
for issuing each of the individual ratings referenced in this release,
please see AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view Understanding
Best’s Credit Ratings. For information on the proper media
use of Best’s Credit Ratings and AM Best press releases, please view Guide
for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.

AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.

Contacts

Scott Mangan
Associate Director
+1 908 439
2200, ext. 5593
scott.mangan@ambest.com

Steven
Chirico
Director
+1 908 439 2200, ext. 5087
steven.chirico@ambest.com

Christopher
Sharkey
Manager, Public Relations
+1 908 439
2200, ext. 5159
christopher.sharkey@ambest.com

Jim
Peavy
Director, Public Relations
+1 908 439
2200, ext. 5644
james.peavy@ambest.com