JDC TECHNICAL EVALUATION REPORT

Subject:  Everest Re & Longtail: $1.2bn Legacy Shield

Reference UID: 6049

Market Authority:  London & International Markets

Broker Code: 643

Case Ref:  ADC-2024-EV-LT

Date: 7th April 2026

Status:  Active

Case Summary (Tier 4):  Everest Group has implemented a significant $1.2 billion Adverse Development Cover (ADC) to insulate its balance sheet from legacy reserve volatility. This “Legacy Shield” was a cornerstone of a 2025 strategic pivot, allowing the Group to simplify its structure and sharpen its focus on Global Wholesale and Specialty business. The ADC was a primary driver of a one-time operating cash flow deficit at year-end, effectively “buying” stability for the 2026 fiscal year.

Case Detail (Tier 5):

Completion Date:  Executed Q4 2025; reported as active catalyst for 2026 restructuring.

Consideration:  $1.2 billion in total limit; $122 million in ADC premium paid in Q4 2025.

Additional Comment:  The move coincides with a broader exit from commercial retail insurance, with approximately $150 million in associated restructuring charges anticipated throughout 2026.