Everest Group, Ltd. has announced a new reinsurance agreement designed to protect its North American Insurance portfolio from potential future reserve losses. The agreement, effective October 1, 2025, is supported by Longtail Re, an affiliate of Stone Ridge Holdings Group.
The deal provides $1.2 billion in gross limit protection for insurance policies written by Everest Insurance’s North American business for accident years 2024 and earlier. Everest will maintain full authority over claims handling and resolution.
Jim Williamson, President and Chief Executive Officer of Everest, stated: “The transaction is a decisive step in strengthening our reserves and insulating our US Casualty insurance portfolio from further potential reserve development. 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 coverage consists of two layers above the $5.4 billion in liability subject reserves for the North America Insurance and Other segment. The first layer totals $700 million; Everest will transfer $1.25 billion of in-the-money reserves at closing. The second layer amounts to $500 million; Everest will pay about $122 million upon closing, which will be recorded as an incurred loss in the fourth quarter of 2025. In each layer, Everest will have a co-participation of $100 million.
This arrangement will be accounted for as retroactive reinsurance. Gallagher Re served as the sole structuring agent and advisor on the transaction.
Everest also released its third quarter 2025 financial results today, available on its investor relations website at investors.everestglobal.com. A conference call discussing these results is scheduled for October 28, 2025 at 8:00 a.m. Eastern Time and can be accessed through the same site.
Additional financial information can be found in the “Investors/Financials/Quarterly Results” section of their website or by contacting the company directly.
Everest Group is listed on the NYSE under EG and is part of the S&P 500 index.
Forward-looking statements regarding this transaction are subject to risks described in Everest’s SEC filings such as their latest Annual Report on Form 10-K.