Everest sold retail renewal rights to AIG and bought $1.2B of reserve protection
Everest sold renewal rights to its $2B retail commercial book to AIG and bought $1.2B of reserve protection, refocusing on reinsurance and specialty.
What was changed
In October 2025 Everest Group announced two linked deals. It agreed to sell the renewal rights for its Global Retail Commercial Insurance business to AIG, covering operations in the US, UK, Europe and Asia-Pacific that represent about $2 billion of gross written premiums. And it signed a $1.2 billion adverse development reinsurance agreement with Longtail Re, an affiliate of Stone Ridge Holdings Group, effective 1 October 2025.
The renewal-rights exit frees Everest to concentrate on its Global Reinsurance and Global Wholesale and Specialty Insurance operations. The company rebuilt its insurance division around the wholesale and specialty business — Everest Global Markets, Everest Evolution, plus underwriting programs, credit and political risk, surety, and accident and health — and appointed Jason Keen, previously leading the effort, as CEO of Global Wholesale and Specialty Insurance to push into the excess and surplus market.
The Longtail Re deal ring-fences the legacy book: $1.2 billion of gross limit against future adverse reserve development on substantially all North American policies for accident years 2024 and prior, with Everest keeping full control of claims handling. The two layers sit in excess of $5.4 billion of subject reserves — $700 million of protection against $1.25 billion of in-the-money reserves transferred at closing, then $500 million bought for about $122 million. Everest co-participates $100 million in each layer; the agreement counts as retroactive reinsurance.
Everest framed both moves as steps toward a more focused, higher-performing organization with sustainable profitability. Completion of the AIG deal remained subject to regulatory approval; Gallagher Re structured the reinsurance transaction, while Ardea Partners and Debevoise & Plimpton advised Everest and Evercore and Willkie Farr & Gallagher advised AIG.
Why it worked
US casualty reserve development threatened the credibility of the rest of the portfolio, so capping it was the precondition for a clean strategic refocus.
The retail commercial business lacked the scale Everest wanted; AIG could renew the book while Everest redeployed capital toward reinsurance and specialty lines.
The adverse-development cover draws a line under accident years 2024 and earlier without giving up control of claims handling and resolution.
A rebuilt wholesale-and-specialty structure under new leadership gives the retained business a growth engine in the excess and surplus market.
What can be applied
A renewal-rights sale lets an underwriter leave a line without stranding policyholders — and pairing the exit with reserve cover takes the tail risk off the table.
Aftermath
The Longtail Re cover took effect 1 October 2025, with the roughly $122 million second-layer consideration to be reported as an incurred loss in Q4 2025. The AIG renewal-rights sale remained subject to regulatory approval. Everest said the divestment would unlock long-term value including capital releases over time, while the reinsurance deal strengthens reserves, protects the US casualty portfolio, and improves risk capacity and capital efficiency alongside Stone Ridge.