AM Best revised the outlooks for Everest Group, Ltd. and its subsidiaries to negative from stable, while affirming the group’s Financial Strength Rating of A+ (Superior) and Long‑Term Issuer Credit Rating of aa‑ (Superior) for the operating subsidiaries. The agency also maintained a‑ (Excellent) ratings for Everest Group, Ltd. and Everest Reinsurance Holdings, Inc. The change reflects a $478 million reserve charge in the third quarter, primarily related to the company’s retail commercial book.
The reserve charge is the second material charge in twelve months, following a $1.5 billion adverse development reported in the fourth quarter of 2024. Everest sold the renewal rights of its global retail commercial book to American International Group for approximately $2 billion in aggregate gross premiums. AIG will assume renewals from January 1, 2026, except for EU assets that are subject to antitrust approvals. Everest retains the back‑book and claims handling responsibilities.
Everest also secured an adverse‑development cover with Longtail Re, an affiliate of Stone Ridge Holdings Group, providing $1.2 billion of gross limit protection for accident years 2024 and earlier. The cover is structured in two layers and became effective on October 1, 2025.
The company is shifting its focus to reinsurance and specialty insurance, which now account for more than 80% of its business. Management stated that the strategic pivot aims to concentrate on core strengths and reduce exposure to the highly competitive retail commercial market.
The negative outlook signals potential challenges for Everest as it concentrates on its reinsurance and specialty segments, but the core ratings remain unchanged.
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