Everest Group has announced two major deals - one of which sees it sell renewal rights to a fellow insurance giant.
The company said it has agreed to sell the renewal rights for its Global Retail Commercial Insurance business to American International Group (AIG) and has also signed a $1.2 billion adverse development reinsurance agreement with Longtail Re, an affiliate of Stone Ridge Holdings Group.
Renewal rights sale
Under the AIG transaction, AIG will acquire the rights to renew Everest's commercial retail operations in the US, UK, Europe and Asia-Pacific. The business represents about $2 billion in gross written premiums. According to Everest, the deal will unlock long-term value, including capital releases over time, while allowing the company to strengthen its focus on its Global Reinsurance and Global Wholesale and Specialty Insurance operations.
Everest said the divestment supports its goal of becoming a more focused and higher-performing organization, better equipped to respond to shifting market needs and maintain sustainable profitability.
To support this strategy, the company introduced a new structure for its insurance division centered on Global Wholesale and Specialty Insurance. The new structure includes Everest Global Markets, Everest Evolution and business lines such as underwriting programs, credit and political risk, surety and accident and health.
Jason Keen has been appointed CEO of Global Wholesale and Specialty Insurance and will lead efforts to grow Everest's presence in the excess and surplus market.
The company said the specialty market presents opportunities for growth and that under Keen’s leadership, Everest Insurance is positioned to capture these while providing tailored solutions and consistent value to clients.
Reinsurance agreement secured
Separately, Everest has entered into an adverse development reinsurance agreement with Longtail Re, effective October 1, 2025.
The agreement provides $1.2 billion of gross limit protection against future adverse reserve development for substantially all insurance policies written by Everest Insurance’s North American business for accident years 2024 and prior. Everest will retain full control over claims handling and resolution.
The company said the agreement strengthens its reserves and provides protection for its US Casualty insurance portfolio against future reserve development. It added that its partnership with Stone Ridge enhances risk capacity and capital efficiency while supporting long-term value creation for clients and shareholders.
The cover includes two layers in excess of $5.4 billion in subject reserves. The first layer provides $700 million of protection, with Everest transferring $1.25 billion of in-the-money reserves upon closing. The second layer provides $500 million of protection, with Everest paying about $122 million of consideration, to be reported as an incurred loss in Q4. Everest will co-participate for $100 million in each layer.
The agreement will be accounted for as retroactive reinsurance. Gallagher Re acted as sole structuring agent and advisor to Everest for the transaction.
Completion of the AIG transaction remains subject to regulatory approval. Everest was advised by Ardea Partners and Debevoise & Plimpton, while AIG received counsel from Evercore and Willkie Farr & Gallagher.
