The Barbados-based Everest Re Group, Ltd. has taken the relatively unusual step of issuing a press bulletin concerning its business relations with California workers comp insurer American All Risk Insurance Services, Inc. (AARIS).
It took the action prior to a previously scheduled investors meeting to be held today. The bulletin noted that “questions were raised concerning market rumors” related to the Company’s contract with AARIS. The agent produces the majority of Everest Re’s California workers’ compensation business. Everest Re said it “does not generally respond to rumors but since information was provided at the investor meeting, the Company wanted to disseminate this information.”
It listed the relevant information as follows:
— The Company believes it is fairly well known that AARIS has been considering other company affiliations.
— Everest Re Group has not been a participant in AARIS’s decision-making processes and cannot comment on AARIS’s intentions.
— Under the AARIS-Everest contract, either party may terminate on 120 days notice. AARIS has not notified the Company of its intent to terminate the contract.
— The Company has spoken with principals of AARIS on several occasions today, who confirmed, after some initial confusion, that AARIS has been in discussions with other parties but has not signed a binding agreement.
— In the normal course of its business, Everest Re Group has considered contingency arrangements for writing California workers’ compensation business and will continue to refine and/or implement those plans, as it deems appropriate.
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