Everest (US:EG) Businesswire·2025-10-29 22:37Core Viewpoint - AM Best has revised the outlooks for Everest Group, Ltd. and its subsidiaries to negative from stable, while affirming their Financial Strength Rating (FSR) of A+ and Long-Term Issuer Credit Ratings (ICR) of "aa-" [1][2] Group Ratings - The ratings reflect Everest's balance sheet strength assessed as strongest, adequate operating performance, very favorable business profile, and appropriate enterprise risk management (ERM) [1][3] - The Long-Term ICRs of Everest Group, Ltd. and Everest Reinsurance Holdings, Inc. have also been affirmed with revised outlooks to negative from stable [1][4] Recent Developments - The negative outlooks are due to elevated uncertainty surrounding the group's business profile and ERM capabilities, following a third-quarter reserve charge of $478 million primarily related to its retail commercial insurance business [2][3] - This reserve charge marks Everest's second significant reserve charge in the past 12 months, following a $1.5 billion adverse development reported in Q4 2024, also driven by the retail commercial portfolio [2][3] Strategic Changes - Everest has announced the sale of its retail commercial book of business through a renewal rights transaction with American International Group, Inc., along with signing an adverse development cover for accident years 2024 and prior [2][3] - The addition of an adverse development cover and the sale of the retail commercial insurance business is expected to enhance confidence in Everest's prospective performance returning to historically stronger levels [3] Operational Focus - The negative outlooks reflect heightened operational risk as Everest shifts its strategy to focus exclusively on its reinsurance and global specialty insurance segments, which together account for over 80% of the group's business [3] - Any adverse developments in Everest's remaining business lines or challenges from restructuring could increase negative pressure on the group's ratings in the near term [3]