Everest Re Group Ltd Profile
Everest Re Group, Ltd., through its subsidiaries, engages in the underwriting of reinsurance and insurance in the U.S., Bermuda and international markets.
The company underwrites reinsurance both through brokers and directly with ceding companies, giving it the flexibility to pursue business based on the ceding company’s preferred reinsurance purchasing method. The company underwrites insurance principally through brokers, surplus lines brokers and general agent relationships.
The company offers treaty and facultative reinsurance and admitted and non-admitted insurance. The company’s products include the full range of property and casualty reinsurance and insurance coverages, including marine, aviation, surety, errors and omissions liability (E&O), directors’ and officers’ liability (D&O),medical malpractice, mortgage reinsurance, other specialty lines, accident and health (A&H), and workers’ compensation.
Following is a summary of the company’s principal operating subsidiaries:
Bermuda Re, a Bermuda insurance company and a direct subsidiary of the company, is registered in Bermuda as a Class 4 insurer and long-term insurer and is authorized to write both reinsurance and insurance property and casualty and life and annuity business. Bermuda Re’s U.K. branch writes property and casualty reinsurance to the United Kingdom, China, and European markets.
Everest International Reinsurance, Ltd. (‘Everest International’), a Bermuda insurance company and a direct subsidiary of the company, is registered in Bermuda as a Class 4 insurer and is authorized to write property and casualty business. All of Everest International’s business has inter-affiliate reinsurance assumed from Everest Re, the U.K. branch of Bermuda Re, Ireland Re and Ireland Insurance.
Ireland Re, an Ireland reinsurance company and an indirect subsidiary of the company, is licensed to write non-life reinsurance, both directly and through brokers, for the London and European markets.
Ireland Insurance, an Ireland insurance company and an indirect subsidiary of the company, is licensed to write insurance for the European markets. In addition, Ireland Insurance is considered an approved/eligible alien surplus lines insurer in the 50 states and the District of Columbia.
Everest Compañia de Seguros Generales Chile S.A., a Chile based insurance company, is licensed to write insurance and reinsurance within Chile.
Everest Re (Everest Reinsurance Company and its subsidiaries), a Delaware reinsurance company and a direct subsidiary of Everest Reinsurance Holdings, Inc. (Holdings), is a licensed property and casualty insurer and/or reinsurer in all states, the District of Columbia, Puerto Rico and Guam; and is authorized to conduct reinsurance business in Canada, Singapore and Brazil. Everest Re underwrites property and casualty reinsurance for insurance and reinsurance companies in the U.S. and international markets.
Everest Insurance Company of Canada (‘Everest Canada’), a Canadian insurance company and direct subsidiary of Everest Underwriting Group (Ireland) Limited (Holdings Ireland), is licensed to write property and casualty insurance in all Canadian provinces.
Everest National Insurance Company (‘Everest National’), a Delaware insurance company and a direct subsidiary of Everest Re, is licensed in 50 states, the District of Columbia and Puerto Rico and is authorized to write property and casualty insurance on an admitted basis in the jurisdictions in which it is licensed. The majority of Everest National’s business is reinsured by its parent, Everest Re.
Everest Indemnity Insurance Company (‘Everest Indemnity’), a Delaware insurance company and a direct subsidiary of Everest Re, writes excess and surplus lines insurance business in the U.S. on a non-admitted basis. Excess and surplus lines insurance is specialty property and liability coverage that an insurer not licensed to write insurance in a particular jurisdiction is permitted to provide to insureds when the specific specialty coverage is unavailable from admitted insurers. Everest Indemnity is a Delaware Domestic Surplus Lines Insurer and is eligible to write business on a non-admitted basis in all other states, the District of Columbia and Puerto Rico. The majority of Everest Indemnity’s business is reinsured by its parent, Everest Re.
Everest Security Insurance Company (‘Everest Security’), a Georgia insurance company and a direct subsidiary of Everest Re, writes property and casualty insurance on an admitted basis in Georgia and Alabama and is approved as an eligible surplus lines insurer in Delaware. The majority of Everest Security’s business is reinsured by its parent, Everest Re.
Everest International Assurance, Ltd. (‘Everest Assurance’), a Bermuda company and a direct subsidiary of Holdings is registered in Bermuda as a Class 3A general business insurer and as a Class C long-term insurer. Everest Assurance has made a one-time election under section 953(d) of the U.S. Internal Revenue Code to be a U.S. income tax paying ‘Controlled Foreign Corporation.’ By making this election, Everest Assurance is authorized to write life reinsurance and casualty reinsurance in both Bermuda and the U.S.
Everest Premier Insurance Company (‘Everest Premier’), a Delaware insurance company and a direct subsidiary of Everest Re, is licensed to write property and casualty insurance in all 50 states and the District of Columbia.
Everest Denali Insurance Company (‘Everest Denali’), a Delaware insurance company and a direct subsidiary of Everest Re, is licensed to write property and casualty insurance in all 50 states and the District of Columbia.
Business Strategy
The company’s business strategy is to sustain its leadership position within targeted reinsurance and insurance markets, provide effective management throughout the property and casualty underwriting cycle and thereby achieve an attractive return for its shareholders.
The key elements of the company’s strategy include careful risk selection, appropriate pricing through strict underwriting discipline and adjustment of the company’s business mix in response to changing market conditions. The company focuses on reinsuring companies that effectively manage the underwriting cycle through proper analysis and appropriate pricing of underlying risks and whose underwriting guidelines and performance are compatible with its objectives.
Marketing
The company writes business on a worldwide basis for many different customers and lines of business.
The company’s ten largest brokers accounted for an aggregate of approximately 52.7% of gross written premiums in 2022. The largest broker, Marsh and McLennan, accounted for approximately 20.0% of gross written premiums. The second largest broker, Aon, accounted for approximately 16.6% of gross written premiums.
The direct reinsurance market is an important distribution channel for reinsurance business written by the company.
The company’s insurance business mainly writes commercial property and casualty on an admitted and non-admitted basis. The business is written through wholesale and retail brokers, surplus lines brokers and through program administrators.
Segments
The company manages its reinsurance and insurance operations as autonomous units.
The Reinsurance operation writes worldwide property and casualty reinsurance and specialty lines of business, on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies. Business is written in the U.S., Bermuda, and Ireland offices, as well as, through branches in Canada, Singapore, the United Kingdom and Switzerland.
The Insurance operation writes property and casualty insurance directly and through brokers, surplus lines brokers and general agents within the U.S., Bermuda, Canada, Europe, Singapore and South America through its offices in the U.S., Canada, Chile, Singapore, the United Kingdom, Ireland and branches in the Netherlands, France, Germany and Spain.
Reinsurance segment
Reinsurance business written directly through the company’s offices represented 90.2% of the segment’s premium and 9.8% was written directly with ceding companies.
Property Pro Rata business, which accounted for 28.0% of reinsurance gross written premiums, contains predominantly contracts providing coverage to cedents for property damage and related losses, which may include business interruption and other non-property losses, resulting from natural or man-made perils arising from their underlying portfolio of policies at an agreed upon percentage for both premium and loss.
Property Non-Catastrophe Excess of Loss (XOL) business, which accounted for 6.2% of reinsurance gross written premiums, contains predominantly contracts providing coverage to cedents for a portion of property damage and related losses, which may include business interruption and other non-property losses, resulting from natural or man-made perils in excess of an agreed upon deductible up to a stated limit.
Property Catastrophe XOL business, which accounted for 15.3% of reinsurance gross written premiums, contains predominantly contracts providing coverage to cedents for a portion of property damage and related losses, which may include business interruption and other non-property losses, resulting from catastrophic losses, in excess of an agreed upon deductible up to a stated limit. The main perils covered include hurricane, earthquake, flood, convective storm and fire.
Casualty Pro Rata business, which accounted for 28.5% of reinsurance gross written premiums, contains predominantly contracts providing coverage to cedents for losses arising from, but not limited to, general liability, professional indemnity, product liability, workers' compensation, employers liability, aviation and auto liability from their underlying portfolio of policies at an agreed upon percentage for both premium and loss.
Casualty XOL business, which accounted for 14.2% of reinsurance gross written premiums, contains predominantly contracts providing coverage to cedents for losses arising from, but not limited to, general liability, professional indemnity, product liability, workers' compensation, aviation and auto liability from their underlying portfolio of policies in excess of an agreed upon deductible up to a stated limit.
Financial Lines business, which accounted for 7.9% of reinsurance gross written premiums, contains predominantly contracts providing coverage to cedents for losses arising from political risk, credit, surety, mortgage and alternative risk lines of business on both a pro rata and excess of loss basis.
Insurance segment
Accident and Health business, which accounted for 10.8% of Insurance gross written premiums, contains predominantly includes policies covering Participant Accident, Short-Term Medical, and Medical Stop-Loss protection for employers with Self-funded medical plans.
Specialty Casualty business, which accounted for 35.0% of Insurance gross written premiums, predominantly includes policies covering General Liability (Premises/Operations and Products), Auto Liability, and Umbrella/Excess Liability.
Other Specialty business, which accounted for 7.0% of Insurance gross written premiums, predominantly includes policies covering specialty areas, including but not limited to Surety, Trade Credit & Political Risk, Transactional Liability, Energy & Construction, and Aviation.
Professional Liability business, which accounted for 17.7% of Insurance gross written premiums, predominantly includes policies covering Directors & Officers Liability, Errors & Omissions, Cyber Liability, and other ancillary financial lines products.
Property/Short-Tail business, which accounted for 18.4% of Insurance gross written premiums, predominantly includes policies covering Property, Inland Marine, and other short-tail lines.
Workers’ Compensation business, which accounted for 11.1% of Insurance gross written premiums, predominantly includes policies covering Workers Compensation, including both guaranteed cost and loss sensitive product offerings.
Geographic Areas
The company conducts its business in Bermuda, the U.S., and a number of foreign countries.
Regulatory Matters
In Bermuda, Bermuda Re, Everest International, Everest Assurance and Mt. Logan Re are regulated by the Insurance Act 1978 (as amended) and related regulations (the ‘Act’). The Act establishes solvency and liquidity standards and auditing and reporting requirements and subjects Bermuda Re, Everest International and Everest Assurance to the supervision, investigation and intervention powers of the Bermuda Monetary Authority. Under the Act, Everest Assurance is licensed as a Class 3A insurer for general business and as a Class C insurer for long-term business.
Bermuda Re is also registered under the Act as long term insurer and is thereby authorized to write life and annuity business. Bermuda Re’s operations in the United Kingdom and worldwide are subject to regulation by the Prudential Regulation Authority (the ‘PRA’).
Everest Indemnity, Everest National, Everest Security, Everest Denali and Everest Premier are subject to regulations similar to the U.S. regulations applicable to Everest Re. In addition, these companies must comply with substantial regulatory requirements in each state where they conduct business.
Everest Re is a licensed property and casualty insurer and/or reinsurer in all states, the District of Columbia, Puerto Rico and Guam.
Everest Re is licensed as a property and casualty reinsurer in Canada. It is also authorized to conduct reinsurance business in Singapore and Brazil. Everest Re can also write reinsurance in other foreign countries. Because some jurisdictions require a reinsurer to register in order to be an acceptable market for local insurers, Everest Re is registered as a foreign insurer and/or reinsurer in the following countries: Bolivia, Brazil, Chile, China, Colombia, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, India, Mexico, Nicaragua, Panama, Paraguay, the Philippines, Singapore and Venezuela.
Everest National is licensed in 50 states, the District of Columbia and Puerto Rico. Everest Indemnity is a Delaware Domestic Surplus Lines Insurer and is eligible to write insurance on a surplus lines basis in the 50 states, the District of Columbia and Puerto Rico. Everest Security is licensed in Georgia and Alabama and is approved as an eligible surplus lines insurer in Delaware. Everest Denali is licensed in 50 states and the District of Columbia. Everest Premier is licensed in 50 states and the District of Columbia.
Bermuda Re and Everest International are registered as Class 4 insurers in Bermuda, and Bermuda Re is also registered as a long-term insurer in Bermuda. Bermuda Re is also registered as a certified reinsurer in New York and Delaware and is registered as a reciprocal reinsurer in: Delaware; California; Massachusetts; Michigan; Minnesota; New Hampshire; New York; Ohio and Texas. Bermuda Re is also an authorized reinsurer in the U.K. and is also registered as a reinsurer in China.
Everest Assurance is registered as a Class 3A general business insurer in Bermuda and a Class C long-term insurer in Bermuda. By virtue of its one-time election under section 953(d) of the U.S. Internal Revenue Code to be a U.S. income tax paying ‘Controlled Foreign Corporation’, Everest Assurance may operate in both the U.S. and Bermuda.
Everest Assurance is also considered an approved/eligible alien surplus lines insurer in the 50 states and the District of Columbia. In addition, Everest Assurance can write reinsurance in other foreign countries. Because some jurisdictions require a reinsurer to register in order to be an acceptable market for local insurers, Everest Assurance is registered as a foreign insurer and/or reinsurance in the following countries: Bolivia, Columbia, Chile, Ecuador, Guatemala, Mexico and Paraguay.
Ireland Re is licensed to write non-life reinsurance for the London and European markets. Ireland Insurance is licensed to write insurance for the European markets. In addition, Ireland Insurance is considered an approved/eligible alien surplus lines insurer in the 50 states and the District of Columbia. Everest Canada is licensed to write property and casualty insurance in Canada. Everest Compañia de Seguros Generales Chile S.A. is an insurance corporation authorized by the general laws of Chile.
History
Everest Re Group, Ltd. was founded in 1973.
