A.M. Best Affirms Ratings of Evergreen Reinsurance Company, Ltd.

A.M. Best Affirms Ratings of Evergreen Reinsurance Company, Ltd.: "A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit rating of “a” of Evergreen Reinsurance Company, Ltd. (Evergreen Re) (Bermuda). The outlook for both ratings is stable.

These ratings reflect Evergreen Re’s excellent capitalization, consistently strong operating performance and its unique role as the primary insurance carrier for its ultimate parent, Evergreen Group. These positive rating factors are derived from the company’s conservative underwriting standards, low cost operating structure and multiple product line book of business and broad geographic exposure base.

Partially offsetting these positive rating factors is Evergreen Re’s exposure to earthquakes and typhoons in the Asia/Pacific region, though the risk is mitigated by policy sublimits, prudent reinsurance and the wide geographic dispersion of assets insured. Furthermore, the majority of its book of business is generated from one source – Evergreen Group. Nonetheless, the group’s business is diverse in scope, complexity and in its risk profile. In addition, management places great emphasis on risk control and carefully monitors its writings in order to avoid a concentration of risk.

The ratings also reflect the strong level of commitment on the part of the Evergreen Group, whose management incorporates Evergreen Re as an integral component in the overall risk management program of the group. Moreover, Evergreen Re gains from its parent’s global scope and business relationships. These commitments have been developed over the last several years and encompass risks located in a number of countries in East and Southeast Asia. Overall, Evergreen Re benefits from its parent’s strong management experience and market presence, as well as Evergreen Group’s adherence to a philosophy of providing a stable market for global insurance and reinsurance for the Evergreen Group and its operating subsidiaries."

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