Everest Group secures $1.2B adverse development cover

Everest Group (EG) announced it has entered into an adverse development reinsurance agreement, effective October 1, 2025, supported by Longtail Re, an affiliate of Stone Ridge Holdings Group. The agreement provides $1.2B of gross limit protection against future adverse reserve development arising from substantially all insurance policies written by Everest Insurance’s North American business for accident years 2024 and prior. Everest will retain sole authority to handle and resolve claims. “The transaction is a decisive step in strengthening our reserves and insulating our US Casualty insurance portfolio from further potential reserve development,” said Jim Williamson, Everest President and Chief Executive Officer. “We are pleased to be working with long-time partner Stone Ridge to enhance our risk capacity, optimize capital efficiency and deliver greater value to our clients and shareholders.” The cover is composed of two layers in excess of the $5.4B of North America Insurance and Other segment liability subject reserves. The first layer is $700M, upon which Everest will transfer $1.25B of in-the-money reserves in consideration upon closing of the transaction. The second layer is $500M, upon which Everest will pay approximately $122M of consideration upon closing of the transaction, which will be reported as an incurred loss during the fourth quarter of 2025. Everest will have a co-participation of $100M in each layer. The agreement will be accounted for as a retroactive reinsurance agreement.