Fitch Ratings has affirmed all ratings related to
Everest Re Group, Ltd. (Everest Group), including the 'A-' long-term
issuer rating of Everest Group, 'A-' senior debt and long-term issuer
rating of intermediate holding company, Everest Reinsurance Holdings,
Inc. (Everest Holdings), and the 'AA-' insurer financial strength
rating (IFS) of Everest Reinsurance Company (Everest Re). This action
follows Everest's announcement of an increase in its loss estimates
for 2005 hurricane events. The Rating Outlook is Stable (all ratings
are listed below).
Everest Group recently announced that estimated pretax losses from Hurricanes Katrina, Rita and Wilma have increased to $1.2 billion from a prior estimate of $1.0 billion, adding significantly to the company's reported operating loss for the full year 2005. This level of catastrophe and operating losses represents a significant departure for Everest Re compared to prior historical performance. While Fitch expects a material improvement in the company's profitability going forward, future large losses may lead to reconsideration of Everest Group's ratings.
To offset these losses, the company issued a total of $755 million of new common equity in two fourth quarter 2005 transactions. The company expects GAAP shareholders equity to exceed $4.0 billion at year-end 2005, compared with reported shareholders equity of $3.7 billion at year-end 2004.
Everest Group is a publicly traded insurance holding company engaged, through its subsidiaries, in property & casualty reinsurance and insurance in the U.S. Bermuda, and certain international markets. U.S. insurance business is conducted through subsidiaries owned by intermediate holding company, Everest Re Holdings. The company reported GAAP consolidated assets of $15.8 billion and shareholders equity of approximately $3.6 billion at Sept. 30, 2005.
The following ratings are affirmed by Fitch with a Stable Outlook:
Everest Re Group, Ltd.
-- Long-term issuer at 'A-'.
Everest Reinsurance Holdings, Inc.
-- Long-term issuer at 'A-';
-- 5.4% senior notes due 2014 at 'A-';
-- 8.75% senior notes due March 15, 2010 at 'A-';
-- 8.5% senior notes due March 15, 2005 at 'A-'.
Everest Re Capital Trust I
-- 7.85% trust preferred securities due Nov. 15, 2032 at 'BBB+'.
Everest Re Capital Trust II
-- 6.2% trust preferred securities due 2034 at 'BBB+'.
Everest Reinsurance Company
Everest National Insurance Company
Everest Indemnity Insurance Company
Everest Security Insurance Company
Everest Reinsurance (Bermuda) Ltd.
-- Insurer financial strength at 'AA-'.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
Everest Group recently announced that estimated pretax losses from Hurricanes Katrina, Rita and Wilma have increased to $1.2 billion from a prior estimate of $1.0 billion, adding significantly to the company's reported operating loss for the full year 2005. This level of catastrophe and operating losses represents a significant departure for Everest Re compared to prior historical performance. While Fitch expects a material improvement in the company's profitability going forward, future large losses may lead to reconsideration of Everest Group's ratings.
To offset these losses, the company issued a total of $755 million of new common equity in two fourth quarter 2005 transactions. The company expects GAAP shareholders equity to exceed $4.0 billion at year-end 2005, compared with reported shareholders equity of $3.7 billion at year-end 2004.
Everest Group is a publicly traded insurance holding company engaged, through its subsidiaries, in property & casualty reinsurance and insurance in the U.S. Bermuda, and certain international markets. U.S. insurance business is conducted through subsidiaries owned by intermediate holding company, Everest Re Holdings. The company reported GAAP consolidated assets of $15.8 billion and shareholders equity of approximately $3.6 billion at Sept. 30, 2005.
The following ratings are affirmed by Fitch with a Stable Outlook:
Everest Re Group, Ltd.
-- Long-term issuer at 'A-'.
Everest Reinsurance Holdings, Inc.
-- Long-term issuer at 'A-';
-- 5.4% senior notes due 2014 at 'A-';
-- 8.75% senior notes due March 15, 2010 at 'A-';
-- 8.5% senior notes due March 15, 2005 at 'A-'.
Everest Re Capital Trust I
-- 7.85% trust preferred securities due Nov. 15, 2032 at 'BBB+'.
Everest Re Capital Trust II
-- 6.2% trust preferred securities due 2034 at 'BBB+'.
Everest Reinsurance Company
Everest National Insurance Company
Everest Indemnity Insurance Company
Everest Security Insurance Company
Everest Reinsurance (Bermuda) Ltd.
-- Insurer financial strength at 'AA-'.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.