A.M. Best Comments on the Conclusion of Everest Re Group Ltd.'s Asbestos Reserve Study.OLDWICK, N.J. -- A.M. Best Co. has commented that the financial strength rating (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ) of A+ (Superior) and issuer credit ratings (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of "aa-" of the reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. and insurance subsidiaries of Everest Re Group, Ltd. (Everest Re) (Bermuda) [NYSE NYSE See: New York Stock Exchange : RE] are unchanged following the announcement concerning the findings on the Everest Re asbestos loss reserve review. Additionally, the ICRs of "a-" of Everest Re and Everest Reinsurance Holdings, Inc. (Delaware) are unchanged, as well as the ratings and outlook on all outstanding debt issuances. At the conclusion of the study, Everest Re announced a net pre-tax charge of $311 million related to asbestos loss reserve strengthening. However, this figure falls within the anticipated range already incorporated within A.M. Best's risk-adjusted capitalization model for Everest Re. Although this charge will have a meaningful impact on fourth quarter 2007 earnings, Everest Re expects to turn an operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for that quarter, building on the operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $713.7 million through nine months 2007 results. A.M. Best believes that this reserving action removes a degree of uncertainty regarding Everest Re's loss reserve adequacy and future earnings drag of asbestos charges. For current Best's Ratings, independent data and analysis on more than 330 reinsurance companies, please visit www.ambest.com/reinsurance. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. |
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