A.M. Best Co. has affirmed the financial strength ratings (FSR) of A+ (Superior) and issuer credit ratings (ICR) of “aa-” of Everest Reinsurance (Bermuda) Ltd. (Everest Re) (Bermuda) (NYSE: RE) and its reinsurance and insurance subsidiaries. Concurrently, A.M. Best has affirmed the ICRs of “a-” of Everest Re Group, Ltd. (Bermuda) and Everest Reinsurance Holdings Inc. (Delaware). A.M. Best also has affirmed the debt ratings of Everest Re Group, Ltd., Everest Reinsurance Holdings Inc., Everest Capital Trust II and Everest Capital Trust III. The outlook for all ratings is stable. (See below for a detailed listing of the companies and ratings.) The ratings reflect Everest Re’s consistently superior risk-adjusted capital position, long-term track record of generating favorable earnings, experienced management team and market profile as a leading global provider of insurance and reinsurance products. Given its conservative financial leverage measures, Everest Re maintains strong financial flexibility with the ability to effectively manage its capital through market cycles. This is evidenced by Everest Re’s five-year average combined ratio, which is below breakeven, representing underwriting profitability. Cash flows from operations also have consistently been strong. Everest Re’s balance sheet is supported by its conservative investment strategy with the current investment portfolio held at a shorter duration and equities at less than 10% of total investments. Everest Re continues to benefit from a seasoned management team, which has successfully deployed its low-cost operating structure to profitably distribute its reinsurance and insurance products globally through a large network of insurance and reinsurance intermediaries. Due to its diversified product offering and geographic spread, A.M. Best believes Everest Re is well positioned within its business sector to continue to perform in line with its peer group despite the potential for reductions in near- to mid-term operating margins. A.M. Best believes that Everest Re has maintained strong traditional risk management capabilities and has established an enterprise risk management framework that effectively identifies, measures and monitors both existing and emerging risks across its respective businesses and enables the efficient allocation of capital. It is A.M. Best’s opinion that Everest Re continues to enhance its enterprise risk management and internal modeling capabilities.