Voltage drops at Everen Specialty after AM Best downgrade
AM Best has downgraded the financial strength rating of Bermuda-based specialty energy insurer Everen Specialty to B++ (Good) from A- (Excellent).
Justifying the downgrade, AM Best pointed to the continued deterioration of the adverse reserve development seen in the past five years largely driven by past diversification efforts into non-energy insurance business, reflecting significant volatility in its loss reserves, as well as declining capital in the same period. AM Best stated that: “Everen Specialty’s strategic diversification efforts have also resulted in operating losses that eroded its risk-adjusted capital levels.”
AM Best did recognise the company’s efforts to stabilise capital by focusing on its core business of providing stable capacity for the energy industry, but emphasised that its ability to reverse these negative trends has not yet positively affected operating results.
In response, Everen Specialty expressed that over the past 12 months, the executive team and board of directors has taken proactive steps to address these challenges by refocusing on its core energy business, reducing its excess general liability limit, strengthening the leadership team with the appointment of a new chief underwriting officer, and executing a new three-year strategic plan, actions recognised by AM Best.
Robert Foskey (pictured), president and CEO of Everen Group, said: “While the downgrade is disappointing, the board and executive team remain fully committed to our mission of meeting the energy insurance needs of our members and policyholders around the world.
“We will continue to take decisive action in 2026 to drive improvements in underwriting profitability, build capital strength, and reduce earnings volatility. We are confident that these ongoing efforts will enable us to deliver improved performance and continue providing reliable energy insurance solutions for our policyholders.”
This rating change for Everen Specialty does not impact Everen Limited, the independent industry-owned mutual that is not rated by AM Best.
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