Bermuda energy insurer loses A-level rating

A.M. Best said Thursday it had downgraded the financial strength rating of Everen Specialty and its affiliate OCIL Specialty to B++ from A-.

The Bermuda-based specialty energy insurer has experienced further deterioration in the adverse reserve development it has shown over the past five years, a Best statement said.

“Everen Specialty’s strategic diversification efforts have also resulted in operating losses that eroded its risk-adjusted capital levels,” it said.

Best noted, though, that Everen Specialty had previously taken corrective actions, including exiting non-energy property and assumed reinsurance, reducing its general liability limits, enhancing its underwriting and strengthening its leadership team.

“While AM Best recognizes the company’s efforts to stabilize capital by focusing on its core business of providing stable capacity for the energy industry, its ability to reverse these negative trends has not yet positively affected operating results,” the rating agency said.

Everen Specialty reported a net loss of $2 million last year.

In a statement in response to the downgrade, Everen Specialty President and CEO Robert Foskey said: “We will continue to take decisive action in 2026 to drive improvements in underwriting profitability, build capital strength and reduce earnings volatility.”

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