The new division will operate with specialized wholesale underwriters and distribution teams and will include Everest Underwriting Partners, the insurer’s programs business.
President of North America Insurance Mike Mulray said: “This dedicated offering reflects Everest’s decades of experience and support for our wholesale partners.”
“We are further strengthening our commitment by bringing our customers and distribution partners highly customized capabilities and greater access to the full breadth of our products and services, with the customer-first culture they expect from Everest.”
This is the latest initiative that Everest has undertaken under the leadership of group CEO Juan Andrade.
Over the last years, the company has been reducing the volatility of its reinsurance book and growing its primary business across various specialty lines.
The (re)insurer has also opened new international operations across Europe and Latin America, including France, Germany, Spain, Chile and Mexico in recent months.
Most recently, the carrier raised roughly $1.5bn as it seeks to capitalize on the current property hard market conditions.
Everest’s new venture comes amid a favorable market environment in the US E&S channel, characterized by surging growth driven by standard lines business passing into E&S. (For further analysis see: The Golden Age of US specialty evolves)
Earlier this month, AM Best noted that surplus lines share of P&C commercial direct written premium rose above 20% for the first time in 2021 and ended 2022 at 21.6%, which compares to an 8.3% share 20 years ago.
The ratings agency noted that the E&S segment is expected to grow faster than the admitted channel in commercial lines in the coming years.
Yet, competition in the US E&S is anticipated to continue rising as the current boom draws the interest of various domestic and international carriers.
Last year, for instance, Axis opened a new wholesale unit and tapped Carlton Maner to lead the division reporting directly to CEO Vince Tizzio, while earlier Zurich NA created a standalone wholesale unit headed by Chris Lewis.
Meanwhile, this year foreign players are looking to venture into the US E&S market with UK insurers Beazley and Lancashire having already announced plans to launch operations. (See: Opinion: Beazley and Lancashire E&S launches underscore Lloyd’s competitive challenge)
