UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

~~_X_~~ ~~Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934~~

~~For the fiscal year ended December 31, 2020~~

~~___~~ ~~Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934~~


			X						Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
									For the fiscal year ended December 31, 2023

									Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission file number 1-14527

EVEREST REINSURANCE HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Delaware

22-3263609

(State or other jurisdiction

of incorporation or organization)

~~22-3263609~~

(I.R.S Employer

Identification No.)

~~100 Everest Way~~

~~Warren, New Jersey 07059~~


100 Everest Way Warren, New Jersey						07059
(Address of principal executive offices)						(Zip Code)

(908) 604-3000

(~~Address, including zip code, and~~Registrant’s telephone number, including area ~~code, of registrant’s principal executive office)~~

code)

_____________________

Securities registered pursuant to Section 12(b) of the Act:

~~Title of Each~~
Class		Name of ~~Each~~ Exchange ~~on Which~~where Registered
4.868% Senior Notes Due 2044		NYSE
3.50% Senior Notes Due 2050		NYSE ~~NYSE~~
3.125% Senior Notes Due 2052		NYSE
6.60% ~~Long Term~~Long-Term Notes Due 2067		NYSE


	~~Securities registered pursuant to Section 12(g) of the Act: None~~

_____________________

Securities registered pursuant to Section 12(g) of the Act: None

_____________________

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.

~~Yes~~

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

~~Indicate~~

If an emerging growth company, indicate by check mark if the registrant ~~is an emerging growth company and~~ has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange ~~act.~~

Act.

Yes

~~Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.)~~

~~Yes~~

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.

Yes

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.


			o

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b).


			o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes

The aggregate market value onas of June 30, ~~2020,~~2023, the last business day of the registrant’s most recently completed second quarter, of the voting stock held by non-affiliates of the registrant was zero.

At March ~~15, 2021,~~13, 2024, the number of shares outstanding of the ~~registrant~~registrant’s common shares was 1,000, all of which are owned by Everest Underwriting Group (Ireland) Limited, a wholly-owned direct subsidiary of Everest Re Group, Ltd.

The Registrant meets the conditions set forth in General Instruction I(1)(a) and (b) of Form 10-K and is therefore filing this form with the reduced disclosure format permitted by General Instruction I of Form 10-K.

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EVEREST REINSURANCE HOLDINGS, INC.

Table of Contents

FORM 10-K


					Page

			PART I

Item 1.			Business		1
~~PART I~~ Item 1A.			Risk Factors		13

~~Item 1.~~	~~Business~~	1
~~Item 1A.~~	~~Risk Factors~~	6
Item 1B.	Unresolved Staff Comments			13 19
Item 2. 1C.			~~Properties~~Cybersecurity		14 19
Item 3. 2.			~~Legal Proceedings~~Properties		14 20
Item 3.			Legal Proceedings		21
Item 4.			Mine Safety Disclosures		14 21

			PART II
~~PART II~~

Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities			14 21
Item 6.			Selected Financial Data		15 21
Item 7.			Management’s Discussion and Analysis of Financial Condition and Results of Operations		15 21
Item 7A.			Quantitative and Qualitative Disclosures About Market Risk		29 33
Item 8.			Financial Statements and Supplementary Data		32 34
Item 9.			Changes in and Disagreements With Accountants on Accounting and Financial Disclosure		32 34
Item 9A.			Controls and Procedures		32 34
Item 9B.			Other Information		32 35
Item 9C.			Disclosure Regarding Foreign Jurisdictions that Prevent Inspections		35

			PART III

Item 10.			Directors, Executive Officers and Corporate Governance		33 36
Item 11.			Executive Compensation		33 36
Item 12.			Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters		33 36
Item 13.			Certain Relationships and Related Transactions, and Director Independence		33 36
Item 14.			Principal Accountant Fees and Services		33 36

			PART IV
~~PART IV~~

Item 15.	Exhibits and Financial Statement Schedules			34 38

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SAFE HARBOR DISCLOSURE

This report contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as “may”, “will”, “should”, “could”, “anticipate”, “estimate”, “expect”, “plan”, “believe”, “predict”, “potential” and “intend”. Forward-looking statements contained in this report include:

•the effects of catastrophic events on our financial statements;

•our losses from catastrophe exposure could exceed our projections;

•information regarding our reserves for losses and loss adjustment expenses or LAE;

•our failure to accurately assess underwriting risk and establish adequate premium rates;

•decreases in pricing for property and casualty reinsurance and insurance;

•our inability or failure to purchase reinsurance;

•our ability to maintain our financial strength ratings;

•the failure of our insured, intermediaries and reinsurers to satisfy their obligations to us;

•decline in our investment values and investment income due to exposure to financial markets conditions;

•the failure to maintain enough cash to meet near-term financial obligations;

•our ability to pay dividends, interest and principal, which is dependent on our ability to receive dividends, loan payments and other funds from our subsidiaries due to our holding company structure;

•reduced net income and capital levels due to foreign currency exchange losses;

•our sensitivity to unanticipated levels of inflation;

•the effects of measures taken by domestic or foreign governments on our business;

•our ability to retain our key executive officers and to attract or retain the executives and employees necessary to manage our business;

•the effect of cybersecurity risks, including technology breaches or failure, and regulatory and legislative developments related to cybersecurity on our business;

•our dependence on brokers and agents for business developments;

•material variation of analytical models used in decision making from actual results;

•the effects of business continuation risk on our operations;

•the effect on our business of the highly competitive nature of our industry, including the effects of new entrants to, competing products for and consolidation in the (re)insurance industry;

•an anti-takeover effect caused by insurance laws; and

•our failure to comply with insurance laws and regulations and other regulatory challenges.

Forward-looking statements only reflect our expectations and are not guarantees of performance. These statements involve risks, uncertainties and assumptions. Actual events or results may differ materially from our expectations. Important factors that could cause our actual events or results to be materially different from our expectations include those discussed under the caption ITEM 1A, “Risk Factors”. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

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PART I

Unless otherwise indicated, all financial data in this document have been prepared using accounting principles generally accepted in the United States of America (“GAAP”). As used in this document, “Holdings” means Everest Reinsurance Holdings, Inc., a Delaware company and direct subsidiary of Everest Underwriting Group (Ireland) Limited (“Holdings Ireland”); “Group” means Everest Re Group, Ltd. (Holdings Ireland’s parent); “Bermuda Re” means Everest Reinsurance (Bermuda), Ltd., a subsidiary of Group; “Everest Re” means Everest Reinsurance Company, ~~and its subsidiaries,~~ a subsidiary of Holdings, and its subsidiaries (unless the context otherwise requires); and the “Company”, “Everest”, “we”, “us”, and “our” means Holdings and its consolidated subsidiaries (unless the context otherwise requires).

Unless noted otherwise, all tabular dollar amounts are in millions of United States (“U.S.”) dollars (“U.S. dollars” or “$”). Some amounts may not reconcile due to rounding.

ITEM 1. BUSINESS

The Company.

Holdings, a Delaware corporation, is a wholly-owned subsidiary of ~~Holdings Ireland. On December 30, 2008, Group contributed Holdings to its recently established Irish holding company,~~ Holdings Ireland. Holdings Ireland is a direct subsidiary of Group and serves as a holding company for the U.S. reinsurance and insurance subsidiaries. Group is a Bermuda holding company whose common shares are publicly traded in the U.S. on the New York Stock Exchange under the symbol ~~“RE”~~“EG”. Group files an annual report on Form 10-K with the Securities and Exchange Commission (the “SEC”) with respect to its consolidated operations, including Holdings.

At December 31, 2023, we had stockholder’s equity of $7.2 billion and total assets of $31.6 billion.

Our Operations.

The Company’s principal business, conducted through its Reinsurance and Insurance operating segments, is the underwriting of reinsurance and insurance in the U.S. and international markets. ~~The~~In 2023, the Company had gross written premiums ~~in 2020,~~ of ~~$8.0~~$11.1 billion, with approximately ~~66%~~65% representing reinsurance and ~~34%~~35% representing insurance. ~~Stockholder’s equity at December 31, 2020 was $6.4 billion.~~ The Company underwrites reinsurance both through brokers and directly with ceding companies, giving it the flexibility to pursue business based on the ceding company’s preferred reinsurance purchasing method. The Company underwrites insurance principally through brokers, including for surplus lines, ~~brokers~~ and general agent relationships. Holdings’ active operating subsidiaries are each rated A+ (“Superior”) by A.M. Best Company (“A.M. Best”), a leading provider of insurer ratings that assigns financial strength ratings to insurance companies based on their ability to meet their obligations to policyholders.

Following is a summary of the Company’s principal operating subsidiaries:

•Everest ~~Re,~~Reinsurance Company, a Delaware ~~insurance~~reinsurance company and a direct subsidiary of Holdings, is a licensed property and casualty insurer and/or reinsurer in all 50 states, the District of Columbia, Puerto Rico and Guam and is authorized to conduct reinsurance business in Canada, Singapore and Brazil. Everest ReReinsurance Company underwrites property and casualty reinsurance for insurance and reinsurance companies in the U.S. and international ~~markets.~~markets, through its U.S. offices as well as through its branches in Canada and Singapore. Everest ReReinsurance Company has engaged in reinsurance transactions with Bermuda Re, Everest International Reinsurance, Ltd. (“Everest International”), Mt. Logan Re, Ltd. (“Mt. Logan Re”) and Everest Insurance Company of Canada (“Everest Canada”), which are affiliated companies, primarily driven by enterprise risk and capital management considerations under which business is transacted at market rates and terms. AtAs of December 31, ~~2020,~~2023, Everest Re had statutory surplus of ~~$5.3~~$7.0 billion.

•Everest National Insurance Company (“Everest National”), a Delaware insurance company and a direct subsidiary of Everest ~~Re,~~Reinsurance Company, is licensed in all 50 states, the District of Columbia and Puerto Rico and is authorized to write property and casualty insurance on an admitted basis in the jurisdictions in which it is licensed. The majority of Everest National’s business is reinsured by its parent, Everest ~~Re.~~

Reinsurance Company.

·•Everest Indemnity Insurance Company (“Everest Indemnity”), a Delaware insurance company and a direct subsidiary of Everest ~~Re,~~Reinsurance Company, writes excess and surplus lines insurance business in the U.S. on a non-admitted basis. Excess and surplus lines insurance is specialty property and liability coverage that an insurer not licensed to write insurance in a particular jurisdiction is permitted to provide to insureds when the specific specialty coverage is unavailable from admitted insurers. Everest Indemnity is ~~licensed in~~a Delaware domestic surplus lines

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insurer and is eligible to write business on a non-admitted basis in all other U.S. states, the District of Columbia and Puerto Rico. The majority of Everest Indemnity’s business is reinsured by its parent, Everest ~~Re.~~

·Reinsurance Company.

•Everest Security Insurance Company (“Everest Security”), a ~~Georgia~~Delaware insurance company and a direct subsidiary of Everest ~~Re, writes~~Reinsurance Company, is licensed to write property and casualty insurance on an admitted basis in Delaware, Georgia and ~~Alabama and is approved as an eligible surplus lines insurer in Delaware.~~Alabama. The majority of Everest Security’s business is reinsured by its parent, Everest ~~Re.~~

·Reinsurance Company.

•Everest Denali Insurance Company (“Everest Denali”), a Delaware insurance company and a direct subsidiary of Everest ~~Re,~~Reinsurance Company, is licensed to write property and casualty insurance in all 50 states and the District of Columbia. The majority of Everest Denali’s business is reinsured by its parent, Everest ~~Re.~~

·Reinsurance Company.

•Everest Premier Insurance Company (“Everest Premier”), a Delaware insurance company and a direct subsidiary of Everest ~~Re,~~Reinsurance Company, is licensed to write property and casualty insurance in all 50 states and the District of Columbia. The majority of Everest Premier’s business is reinsured by its parent, Everest ~~Re.~~

·Reinsurance Company.

•Everest International Assurance, Ltd. (“Everest Assurance”), a Bermuda company and a direct subsidiary of Holdings is registered in Bermuda as a Class 3A general business insurer and as a Class C long-term insurer. Everest Assurance has made a one-time election under section 953(d) of the U.S. Internal Revenue Code to be a U.S. income tax paying “Controlled Foreign Corporation.” By making this election, Everest Assurance ~~will be~~is authorized to write life reinsurance and casualty reinsurance in both Bermuda and the U.S.

In addition, Everest Assurance is considered an approved/eligible alien surplus lines insurer in all 50 states and the District of Columbia.

Human Capital Management.

Our colleagues worldwide are essential to our success, and we strive to attract and retain the highest caliber of talent to meet our business needs, as well as the needs of our clients and customers. It is our goal to build skilled, talented, collaborative, inclusive teams and foster a sense of purpose and company culture rooted in diversity of thought and experiences. As of February 1, 2024, the Company employed 2,158 persons. Management believes that colleague engagement is strong. None of the Company’s employees are subject to collective bargaining agreements, and the Company is not aware of any current efforts to enter into such agreements.

Talent Attraction, Development, and Retention.

Everest is proud to be home to top industry talent, and we make ongoing, strategic investments in our people. Our ability to attract, develop and retain a high caliber of professionals is critical to our continued growth and ability to execute on our strategic priorities.

The continued development of all colleagues is core to who we are and how we maintain our competitive advantage as a global leader in risk management. We are proud to offer corporate mentoring programs, leadership development opportunities, and avenues for engagement with our external partner organizations. We provide opportunities for continued learning and talent development at all levels. Our colleagues are encouraged to take ownership of their development by using the tools that the Company has made available to them including industry training, technical upskilling, mentorships and personal development classes. Everest also actively manages succession planning across our organization and strives to provide growth and advancement opportunities to internal talent, where possible. Our leaders and colleagues engage in ongoing learning that supports both professional and personal development.

Proactive recruitment of skilled, experienced, diverse teams is an important aspect of succession planning at both the Board of Directors (the “Board”) level and throughout the organization. Our Human Resources and Senior Leadership Teams, Executive Committee, Global Diversity, Equity and Inclusion Council (“DEI Council”) and Colleague Resource Groups (“CRGs”) collaborate to attract, retain and develop exceptional, diverse talent, fostering an inclusive workplace that embraces diversity in gender, ethnicity, age, geography, skill sets, experiences and perspectives.

People power our success. We are committed to providing all colleagues with an engaging and supportive environment so they can develop personally and help drive our future growth. That is why Everest is pleased to offer various global initiatives such as leadership coffee hours and fireside chats; charitable community outreach events and volunteer

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opportunities; networking events; employee recognition awards; and, thought leadership topics with senior leaders. By offering a meaningful and engaging colleague experience, we are focused on inspiring our global teams to underwrite opportunity in everything that they do.
Culture.
Everest’s Colleague Value Proposition Opportunity through Unity includes the building blocks of the Company’s culture: our mission, purpose, and values, as well as a newly defined set of Colleague Behaviors that speak to how we operate as One Everest, regardless of location, level, or function.
•Our Values are the guiding principles that inform our decisions, actions and behaviors. They are an expression of our culture and an integral part of how we work: Talent. Thoughtful Assumption of Risk. Execution. Efficiency. Humility. Leadership. Collaboration. Diversity, Equity and Inclusion.
•Our Colleague Behaviors define how we operate and interact with each other no matter our location, level or function: Respect Everyone. Pursue Better. Lead by Example. Own our Outcomes. Win Together.
•In 2023, the Company began embedding these new behaviors within colleague programs and practices globally. We are taking a systematic approach to integrating them into everything we do, from our talent acquisition and onboarding programs to our performance and compensation plans, recognition initiatives and general employment policies.
Diversity and Inclusion.
People are Everest’s greatest asset, and the quality of our teams has been enhanced through the wide range of backgrounds, perspectives and interests our colleagues bring to our community. At Everest, Diversity, Equity, and Inclusion (“DEI”) expresses our commitment to non-discriminatory access to opportunity, equity in our dealings and cultural inclusivity, and represents a cultural and business imperative that we promote not only within our workplace but also throughout the global communities in which we operate. The Board is committed to advancing diversity within its structure as well as emphasizing its importance in our senior executive leadership. We believe that diversity in gender, ethnicity, age, geography, skill sets, experiences and perspectives enhances our governance, strategy, corporate responsibility, human rights and risk management.
Everest has a global DEI strategic framework and focus areas that aligns with our corporate global DEI efforts and initiatives. We have four pillars that provide the foundation for our strategic framework as described below.
1.Alignment & Accountability: Our integrated global DEI efforts align with our corporate strategy, cultural values and colleague behaviors.
2.Colleague-Centered: Our colleagues are the center of the global programs, processes and partnerships we create, and we value and respect their diverse experiences and perspectives.
3.Culture & Engagement: Our workplace culture of deep colleague engagement thrives because of our efforts to advance inclusion, allyship and belonging.
4.Opportunity & Growth: Our global efforts and ways to underwrite opportunity for all stakeholders are oriented toward growth, and we have the agility to pivot as necessary to support our strategic priorities.
As part of our global DEI efforts, Everest has the DEI Council, which functions globally across our North America and international operations. The DEI Council’s mission is to help foster an environment that attracts, retains and develops the best talent; values the diversity of people, their life experiences and perspectives; and serves as a conduit to senior management to promote measurable company-wide engagement on inclusivity. The DEI Council is an important voice and key counselor and supports our leaders in their role to further cultivate DEI at Everest through open dialogue and discussion, training, and best practices. The DEI Council has also been instrumental in supporting our CRGs as they raise awareness and ensure that a diverse and representative group of voices is heard throughout the Company.
We look to seize opportunities to celebrate our diversity and lift one another up. Our global CRGs, as part of our DEI Council, connect regularly through networking events, professional development opportunities and sharing cultural traditions, driving greater awareness and collaboration across offices worldwide. Participation in our CRGs is open to everyone, regardless of background, to enhance career and personal development, exchange ideas and share cultural
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experiences and backgrounds to contribute to Everest’s vision and values. As of December 31, 2023, the Company sponsors nine CRGs.
Business and Underwriting Strategy.
The Company writes business on a worldwide basis for many different customers and lines of business, thereby obtaining a broad spread of risk. The Company is not substantially dependent on any single customer, small group of customers, line of business or geographic area. The Company believes that a reduction of business from any one customer would not have a material adverse effect on its future financial condition or results of operations.

The broker reinsurance market consists of several substantial national and international brokers and a number of smaller specialized brokers. Brokers do not have the authority to bind the Company with respect to reinsurance agreements, nor does the Company commit in advance to accept any portion of a broker’s submitted business. Reinsurance ~~Industry~~business from any ceding company, whether new or renewal is subject to acceptance by the Company. Brokerage fees are generally paid by reinsurers. The Company believes that a reduction of business assumed from any one broker would not have a material adverse effect on the Company.
The Company’s insurance business mainly writes commercial property and casualty on an admitted and non-admitted basis. The business is written through wholesale and retail brokers, surplus lines brokers and through program administrators.
The direct reinsurance market is an important distribution channel for reinsurance business written by the Company. Direct placement of reinsurance enables the Company to access clients who prefer to place their reinsurance directly with reinsurers based upon the reinsurer’s in-depth understanding of the ceding company’s needs.
It is our long-standing client and broker relationships that help us continue to grow and maintain our global leadership position. The Company continually evaluates each business relationship, including within its distribution channel bearing underwriting expertise and experience, performs analyses to evaluate financial security, monitors performance and adjusts underwriting decisions accordingly.
The Company’s business strategy is to sustain its leadership position within targeted reinsurance and insurance markets, and provide effective management throughout the property and casualty underwriting cycle, thereby achieving an attractive return for its shareholders. The Company’s underwriting strategies seek to capitalize on what we believe are our financial strength and capacity, global franchise, stable and experienced management team, diversified product and distribution offerings, underwriting expertise and disciplined approach, efficient and low-cost operating structure and effective enterprise risk management practices.
The Company’s underwriting strategies emphasize disciplined underwriting, prioritizing underwriting profitability over premium volume, and flexibility to adjust and respond to changing market conditions. Key elements of these strategies, as applicable to the Reinsurance segment, include careful risk selection, appropriate pricing through strict underwriting discipline, and adjustments to the Company’s business mix as market conditions change. We focus on (re)insuring companies that effectively manage their own underwriting cycle through proper analysis and appropriate pricing of underlying risks and whose underwriting guidelines and performance are compatible with their and the Company’s objectives. Key elements of the Company’s underwriting strategies, as applicable to the Insurance segment, include careful expansion on what we believe to be the Company’s existing strengths in the primary insurance market, including its broad underwriting expertise, global presence, strong financial ratings and substantial capital, and facilitating adjustments to its mix of business by geographic region, line of business and type of coverage. These strategies allow Everest to fully participate in market opportunities that provide the greatest potential for underwriting profitability. The Company’s insurance and reinsurance operations allow the Company to execute its strategies by providing access to the global business markets. The Company carefully monitors its mix of business across all operations to seek to avoid unacceptable geographic or other risk concentrations.

Segments Overview.

The Company operates through two operating segments, Reinsurance and Insurance, which are managed as autonomous units, and key strategic decisions are based on the aggregate operating results and projections for the two business segments. During the fourth quarter of 2023, the Company revised the classification and presentation of certain products related to its accident and health business within the segment groupings. These products have been realigned from within the Reinsurance segment to the Insurance segment to appropriately reflect how the business segments are now

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managed due to changes in management beginning in the fourth quarter of 2023. These changes have been reflected retrospectively.

The Reinsurance segment writes worldwide property and casualty reinsurance and specialty lines of business, on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies. Business is written in the United States as well as through branches in Canada and Singapore. The Insurance segment writes property and casualty insurance directly and through brokers, including for surplus lines, and general agents within the United States.

The two segments are managed independently, but conform with corporate guidelines with respect to pricing, risk management, control of aggregate catastrophe exposures, capital, investments and support operations. Management generally monitors and evaluates the financial performance of the two operating segments based upon their underwriting results.

Underwriting results include earned premium less losses and loss adjustment expenses (“LAE”) incurred, commission and brokerage expenses and other underwriting expenses. We measure our underwriting results using ratios, in particular loss, commission and brokerage and other underwriting expense ratios, which respectively, divide incurred losses, commissions and brokerage and other underwriting expenses by premiums earned. For selected financial information regarding these segments, see ITEM 8, “Financial Statements and Supplementary Data” - Note 6 of Notes to Consolidated Financial Statements and ITEM 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operation - Segment Results”.

Reinsurance Segment.

Overview

Reinsurance is an arrangement in which an (re)insurance company, the reinsurer, agrees to indemnify another insurance or reinsurance company, the ceding company, against all or a portion of the ~~insurance~~ risks underwritten by the ceding company under one or more insurance and/or reinsurance contracts. Reinsurance can provide a ceding company with several benefits, including a reduction in its net liability on individual risks or classes of risks, catastrophe protection from large and/or multiple losses and/or a reduction in operating leverage as measured by the ratio of net premiums and reserves to capital. Reinsurance also provides a ceding company with additional underwriting capacity by permitting it to accept larger risks and write more business than would be acceptable relative to the ceding company’s financial resources. Reinsurance does not discharge the ceding company from its liability to policyholders; rather, it reimburses the ceding company for covered losses.

There are two basic types of reinsurance arrangements: treaty and facultative. Treaty reinsurance obligates the ceding company to cede and the reinsurer to assume a specified portion of a type or category of risks insured by the ceding company. Treaty reinsurers do not separately evaluate each of the individual risks assumed under their ~~treaties,~~treaties; instead, the reinsurer ~~relies upon the pricing and underwriting decisions made~~evaluates portfolio level exposure based on information provided by the ceding company. InIn facultative reinsurance, the ceding company cedes, and the reinsurer assumes, all or part of the risk under a single insurance contract. Facultative reinsurance is negotiated separately for each insurance contract that is reinsured. Facultative reinsurance, when purchased by ceding companies, usually is intended to cover individual risks not covered by their reinsurance treaties because of the dollar limits involved or because the risk is unusual.

Both treaty and facultative reinsurance can be written on either a pro rata basis or an excess of loss basis. Under pro rata reinsurance, the ceding company and the reinsurer share the premiums as well as the losses and expenses in an agreed proportion. Under excess of loss reinsurance, the reinsurer indemnifies the ceding company against all or a specified portion of losses and expenses in excess of a specified dollar amount, known as the ceding company's retention or reinsurer's attachment point, generally subject to a negotiated reinsurance contract limit.

In pro rata reinsurance, the reinsurer generally pays the ceding company a ceding commission. The ceding commission generally is based on the ceding company’s cost of acquiring the business being reinsured ~~(commissions,~~(such as commissions, premium taxes, assessments, and miscellaneous administrative ~~expense~~expenses and may contain profit sharing provisions, whereby the ceding commission is adjusted based on loss experience). Premiums paid by the ceding company to a reinsurer for excess of loss reinsurance are not directly proportional to the premiums that the ceding company receives because the reinsurer does not assume a proportionate risk. There is usually no ceding commission on treaty excess of loss reinsurance.

Reinsurers may purchase reinsurance to cover their own risk exposure. Reinsurance of a reinsurer's business is called a retrocession. Reinsurance companies cede risks under retrocessional agreements to other reinsurers, known as

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retrocessionaires, for reasons similar to those that cause insurers to purchase reinsurance: to reduce net liability on individual or classes of risks, protect against catastrophic losses, stabilize financial ratios and obtain additional underwriting capacity.

All the Company’s reinsurance and retrocessional agreements transfer significant reinsurance risk and therefore, are accounted for as reinsurance in accordance with U.S. generally accepted accounting principles (“GAAP”) guidance.

Reinsurance can be written through intermediaries, generally professional reinsurance brokers, or directly with ceding companies. From a ceding company's perspective, the broker and the direct distribution channels have advantages and disadvantages. A ceding company's decision to select one distribution channel over the other will be influenced by its perception of such advantages and disadvantages relative to the reinsurance coverage being placed.

~~Business Strategy.~~

~~The~~

For the year ended December 31, 2023, the Company’s ~~business strategy~~Reinsurance segment wrote $7.2 billion of gross written premiums. Our Reinsurance segment is to sustain its leadership position within targeted reinsurance and insurance markets, provide effective management throughout the property and casualty underwriting cycle and thereby achieve an attractive return for its stockholder. The Company’s underwriting strategies seek to capitalize on its i) financial strength and capacity, ii) global franchise, iii) stable and experienced management team, iv) diversified product and distribution offerings, v) underwriting expertise and disciplined approach, vi) efficient and low-cost operating structure and vii) effective enterprise risk management practices.

~~The Company offers treaty and facultative reinsurance and admitted and non-admitted insurance. The Company’s products include the full range~~comprised of property and casualty reinsurance and ~~insurance coverages, including marine, aviation, surety, errors and omissions liability (“E&O”), directors’ and officers’ liability (“D&O”), medical malpractice, other~~ specialty ~~lines, accident and health (“A&H”) and workers’ compensation.~~

The Company’s underwriting strategies emphasizes underwriting profitability over premium volume. Key elements of this strategy include careful risk selection, appropriate pricing through strict underwriting discipline and adjustment of the Company’s business mix in response to changing market conditions. The Company focuses on reinsuring companies that effectively manage the underwriting cycle through proper analysis and pricing of underlying risks and whose underwriting guidelines and performance are compatible with its objectives.

The Company’s underwriting strategies emphasize flexibility and responsiveness to changing market conditions. The Company believes that its existing strengths, including its broad underwriting expertise, global presence, strong financial ratings and substantial capital, facilitate adjustments to its mix of business geographically, by line of business and by type of coverage, allowing it to participate in those market opportunities that provide the greatest potential for underwriting profitability. The Company’s insurance operations complement these strategies by accessing business that is not available on a reinsurance basis. The Company carefully monitors its mix of business across all operations to avoid unacceptable geographic or other risk concentrations.

Commencing 2015, the Company initiated a strategic build out of its insurance platform through the investment in key leadership hires which in turn has brought significant underwriting talent and stronger direction in achieving its insurance program strategic goals of increased premium volume and improved underwriting results. Recent growth is coming from highly diversified areas including newly launched lines of business on both a treaty, facultative and large corporate risk basis, including:

•Property Pro Rata business, which consists predominantly of contracts providing coverage to cedents for property damage and related losses, which may include business interruption and other non-property losses, resulting from natural or man-made perils arising from their underlying portfolio of policies at an agreed upon percentage for both premium and loss.

•Property Non-Catastrophe Excess of Loss (“XOL”) business, which consists predominantly of contracts providing coverage to cedents for a portion of property damage and related losses, which may include business interruption and other non-property losses, resulting from natural or man-made perils in excess of an agreed upon deductible up to a stated limit.

•Property Catastrophe XOL business, which consists predominantly of contracts providing coverage to cedents for a portion of property damage and related losses, which may include business interruption and other non-property losses, resulting from catastrophic losses, in excess of an agreed upon deductible up to a stated limit. The main perils covered include hurricane, earthquake, flood, convective storm and fire.

•Casualty Pro Rata business, which consists predominantly of contracts providing coverage to cedents for losses primarily arising from general liability, professional indemnity, product liability, workers' compensation, employer’s liability, aviation and auto liability from their underlying portfolio of policies at an agreed upon percentage for both premium and loss.

•Casualty XOL business, which consists predominantly of contracts providing coverage to cedents for losses primarily arising from general liability, professional indemnity, product liability, workers' compensation, aviation and auto liability from their underlying portfolio of policies in excess of an agreed upon deductible up to a stated limit.

•Financial Lines business, which consists predominantly of contracts providing coverage to cedents for losses arising from political risk, credit, surety, mortgage and alternative risk lines of business on both a pro rata and excess of loss basis.

Products

Our reinsurance divisions provide treaty and facultative reinsurance on either a pro rata basis or an excess of loss basis to insurance companies across the globe. Our company provides products for the following lines of business:

•Property provides protection for property damage and other related losses covered in the underlying insurance policies. Losses might arise from property loss or property damage, as well as ~~product~~other related risks, such as business interruption and ~~geographic expansion~~other non-property losses that arise from the covered peril. Perils covered by such policies may be natural or man-made and include hurricane, tornado, hail, windstorm, earthquake, freezes, floods, explosions and fires.

•Catastrophe is a specific line of property reinsurance that provides protection against catastrophic losses from natural perils such as hurricane, windstorm, earthquake, floods, tornadoes, fires.

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•Casualty provides protection for losses covered in ~~existing~~liability or casualty insurance policies. Typical lines covered by the underlying insurers can be general liability, workers compensation, automobile liability, umbrella and excess casualty.

•Marine provides protection for property damages, physical loss or liability affecting the marine business, which includes losses relating to cargo ships, hull, recreational craft, inland marine and offshore energy. Perils can be natural or man-made and include storms, sinking/stranding, pollution, fire, explosion and accidents.

•Aviation provides protection cover for aircrafts, airline, aerospace, and other general aviation risks.

•Engineering provides protection for construction and machinery risks including testing, setting up of machinery, operational failures, incidents affecting plant and equipment, business interruption and other mechanical failures. This class also covers property and liability exposures related to construction sites.

•Professional Lines provides protection for losses arising from employment, practices, and coverage of risks, such as director’s and officer’s liability, employment litigation liability, medical malpractice, professional indemnity, environmental liability, omission of insurance, and cyber liability.

•Credit and Surety provides protection for losses arising from insurance products, offering payments in the event of default from a borrower. Losses may arise from surety bonds issued by insurers as required by regulators or guarantors. For example, mortgage insurance provides coverage for losses related to credit risk.

•Motor provides protection to insurance companies offering motor liability and property damage. Losses may affect the underlying insured party or other claimants.

•Agriculture/Crop provides protection for risks associated with agriculture and production of food. Underlying insurance contracts might offer contracts covering against natural or man-perils, such as hail, storms and floods, and might cover crop yields or price deviation from set amounts.

•Political Violence provides protection against damages resulting from various perils, such as terrorism, sabotage, strikes, riots, insurrection, revolution, coup, and war. Losses might occur due to property damage resulting from such perils, business interruption, cyber/malicious attack, event cancellation or construction delays.

Competition

The global reinsurance market is highly competitive and very mature. Reinsurance companies differentiate themselves based on financial strength, range of products, brand recognition, duration of the relationship with the cedents, distribution channels, claims management, and customer service. Competition for clients might be based on pricing, capacity, coverage terms, conditions, or other factors.

We compete in global and local markets with U.S. and international reinsurers. In addition, competitors may include investment companies, mutual companies, insurance companies, alternative risk and capacity providers (such as captives, catastrophe bonds and pools) and others, as alternative products are introduced into the capital markets to compete with traditional reinsurance companies.

Insurance Segment.

Overview

Everest’s Insurance segment markets and distributes a wide range of insurance products and services through various forms of brokers and agents. We serve multinational corporations and mid-size commercial clients across various industries.

Our Insurance segment operates through the North America markets. These operations are managed to conform with corporate guidelines with respect to pricing, risk management, control of aggregate catastrophe exposures, capital, and investments.

In 2023, the Company’s Insurance segment wrote $3.9 billion of gross written premiums. The Insurance segment lines of ~~business.~~ business write a broad suite of tailored products and services, including:

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•Accident and Health business, which consists predominantly of policies covering Participant Accident, Short-Term Medical, and Medical Stop-Loss protection for employers with self-funded medical plans.

•Specialty Casualty business, which consists predominantly of policies covering General Liability (Premises/Operations and Products), Auto Liability, and Umbrella/Excess Liability.

•Other Specialty business, which consists predominantly of policies covering specialty areas including but not limited to Surety, Trade Credit & Political Risk, Transactional Liability, Energy & Construction, and Aviation.

•Professional Liability business, which consists predominantly of policies covering Directors & Officers Liability, Errors & Omissions, Cyber Liability, and other ancillary financial lines products.

•Property/Short-Tail business, which consists predominantly of policies covering Property, Inland Marine, and other short-tail lines.

•Workers’ Compensation business, which consists predominantly of policies covering Workers Compensation, including both guaranteed cost and loss sensitive product offerings.

Products

The ~~Company is building a world-class~~Insurance division writes property, casualty, and specialty insurance ~~platform capable~~products, which are aligned with the lines of ~~offering~~business described within the Insurance Segment Overview. These products ~~across~~are written directly, as well as through brokers, including for surplus lines, and ~~geographies, complementing its leading global reinsurance franchise.~~

general agents within the U.S.

Competition

~~Capital Transactions.~~

The ~~Company’s business operations are in part dependent~~insurance market is highly competitive. Insurance companies differentiate themselves based on ~~its~~ financial strength, range of products, brand recognition, agent and ~~financial strength ratings,~~broker relationships, distribution channels, claims management, and customer service. Competition for clients might be based on pricing, capacity, coverage terms, conditions, or other factors.

We compete on a regional basis with major U.S. insurers. In addition, we also compete with new companies and existing companies that move into the ~~market’s perception~~insurance industry. Competitors sell through various distribution channels and business models, across a broad array of ~~its financial strength. The Company stockholder’s equity was $6,414.3 million~~product lines, and ~~$5,857.4 million at December 31, 2020~~with a high level of variation regarding geographic, marketing, and 2019, respectively. The Company possesses significant financial flexibility with access to the debt markets and, through its ultimate parent, equity markets, as a result of its perceived financial strength, as evidenced by the financial strength ratings as assigned by independent rating agencies. The Company’s capital position remains strong, commensurate with its financial ratings and the Company has ample liquidity to meet its financial obligations for the foreseeable future.

customer segmentation.

Financial Strength Ratings.

The following table shows the current financial strength ratings of the Company’s operating subsidiaries as reported by A.M. Best, ~~Standard & Poor’s (S&P),~~S&P and Moody’s. These ratings ~~are based upon factors relevant~~represent an independent opinion of our subsidiaries’ financial strength, operating performance, business profile and ability to ~~policyholders and~~meet policyholder obligations. The ratings are not intended to be an indication of the degree or lack of risk involved in a direct or indirect equity investment ~~in an insurance~~ or ~~reinsurance company.~~

a recommendation to buy, sell or hold our securities. Additionally, rating organizations may change their rating methodology, which could have a material impact on our financial strength ratings.

All of the below-mentioned ratings are continually monitored and revised, if necessary, by each of the rating agencies. The ratings presented in the following table were in effect as of ~~January~~December 31, ~~2021.~~

2023.

The Company believes that its ratings are important as they provide the Company’s customers and others with an independent assessment of the Company’s financial strength using a rating scale that provides for relative comparisons.

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Strong financial ratings are particularly important for reinsurance and insurance companies given that customers ~~may~~ rely on a company to pay covered losses well into the future. As a result, a highly rated company is generally preferred.

Operating Subsidiary:

A.M. Best

(1)

S&P (2)

~~S&P~~

Moody's

(3)

Everest Reinsurance Company

A+ (Superior)

A+ (Strong)

A1 (upper-medium)

Everest National Insurance Company

A+ (Superior)

A+ (Strong)

Not Rated

Everest Indemnity Insurance Company

A+ (Superior)

A+ (Strong)

Not Rated

Everest Security Insurance Company

A+ (Superior)

A+ (Strong)

Not Rated

~~Not Rated~~

Everest International Assurance, Ltd.

A+ (Superior)

A+ (Strong)

Not Rated

Everest Denali Insurance Company

A+ (Superior)

A+ (Strong)

Not Rated

Everest Premier Insurance Company

A+ (Superior)

A+ (Strong)

Not Rated

(1) A.M. Best Financial Strength Ratings Scale: D (Poor) to A+ (Superior). Each financial strength rating category from A to C includes a rating notch to reflect a graduation of financial strength within the category. A rating notch is expressed with either a second plus (+) or a minus (-).

(2) S&P Financial Strength Ratings Scale: D (Payment Default) to AAA (Extremely Strong). Ratings from “AA” to “CCC” may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.

(3) Moody’s Financial Strength Ratings Scale: C (Low Grade) to Aaa (High Grade). Note that Moody’s appends numerical modifiers 1, 2 and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; modifier 2 indicates a mid-range ranking; and modifier 3 indicates a ranking in the lower end of that generic rating category.

A.M. Best states that the “A+” (“Superior”) rating is assigned to those companies which, in its opinion, have a superior ability to meet their ongoing insurance ~~policy~~policies and contract obligations based on A.M. Best’s comprehensive quantitative and qualitative evaluation of a company’s balance sheet strength, operating performance and business profile. A.M. Best affirmed these ratings on ~~May~~June 29, ~~2020.~~2023. S&P states that the “A+”/~~”A”~~ “A” ratings are assigned to those insurance companies which, in its opinion, have strong financial security characteristics with respect to their ability to pay under ~~its~~their insurance policies and contracts in accordance with their terms. Following the publishing of the revised Insurer Risk Based Capital Adequacy methodology on November 15, 2023, S&P ~~issued a new rating to Everest Denali Insurance Co and Everest Premier Insurance Co of A+ (Strong), upgraded the rating of Everest International Assurance Ltd from A to A+ (Strong) and~~ affirmed all ~~other~~ ratings on ~~May~~January 29, ~~2020.~~2024. Moody’s states that an “A1” rating is assigned to companies that, in their opinion, offer upper-medium grade security and are subject to low credit risk. Moody’s affirmed these ratings on June ~~5, 2020.~~

29, 2023.

Subsidiaries other than Everest Re may not be rated by some or any rating agencies because such ratings are not considered essential by the individual subsidiary’s customers or because of the limited nature of the subsidiary’s operations or because the subsidiaries are newly established and have not yet been rated by the agencies.

Debt Ratings.

The following table shows the debt ratings by A.M. Best, S&P and Moody’s of the ~~Holdings’~~following series of notes issued by Holdings, all of which are considered investment grade: (1) senior notes due June 1, 2044, (2) senior notes due October 15, 2050, (3) senior notes due October 15, 2052 and ~~Junior Subordinated~~(4) long-term notes due May 1, ~~2067 all of which are considered investment grade.~~2067. Debt ratings are the rating agencies’ current assessment of the credit worthiness of an obligor with respect to a specific obligation.

Instrument

A.M. Best

S&P (1)

~~S&P~~

Moody's

Senior Notes due June 1, 2044

(Strong)

~~(Strong)~~

BBB+

(Strong)

Baa1

A-

~~(Strong)~~

~~Baa1~~

(Medium Grade)

Senior Notes due October 15, 2050

(Strong)

~~(Strong)~~

BBB+

(Strong)

Baa1

A-

~~(Strong)~~

~~Baa1~~

(Medium Grade)

~~Long Term~~Senior Notes

due October 15, 2052

Not Rated

~~bbb~~

BBB+

~~(Adequate)~~

(Strong)

Baa1

~~BBB~~

~~(Adequate)~~

~~Baa2~~

(Medium Grade)

Long-Term Notes due May 1, 2067

bbb

(Adequate)

BBB-

(Adequate)

Baa2

(Medium Grade)

Competition.

(1) On January 29, 2024, S&P lowered the ratings of Holdings and its debt (from two notches to three notches lower than Group’s operating companies) to align Everest with the potential high regulatory restrictions on payment distributions from the Company's operating subsidiaries to Holdings.

Enterprise Risk Management.

Everest is in the business of underwriting and managing risk for its customers. As a global insurance and reinsurance business, we have an established Enterprise Risk Management (“ERM”) framework that is integrated into the day-to-day management of our businesses and operations. The ERM framework provides a group-wide systemic approach to managing the organization’s key risks and is supported by a Risk Appetites Statement approved by the Board.

Risk governance is a key component of Everest’s ERM framework in order to establish and coordinate risk guidelines that reflect the enterprise’s appetite for risk, facilitate monitoring of risk exposure relative to established guidelines, and ensure effective and timely escalation and communication to management and the Board. Risk management is overseen by Board and senior management risk committees. The risk committees are established at the Group level, as well as

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within certain Everest entities, to oversee capital and risk positions, approve risk management strategies and limits, and establish appropriate risk standards and policies.

Our Executive Risk Management Committee (“ERC”) reports to and assists the Chief Executive Officer in the oversight and review of Everest’s ERM framework and key risks, including Underwriting, Financial, Operational, and Strategic risks. The ERC is responsible for establishing the Group’s risk management principles, policies, and risk appetite levels. The ERC meets at least quarterly and is comprised of the following senior executives: Chief Executive Officer, Chief Financial Officer, Chief Operations Officer and Head of Reinsurance Division, Chief Executive Officer of the Insurance Division, General Counsel, Chief Transformation Officer, Chief Reserving Actuary, and the Chief Risk Officer.

The ERC is assisted in its activities by Everest’s ERM function and senior management risk committees. The ERC provides strategic risk management direction to the Group, which is then executed by the business units and by Everest’s ERM function. ERM is centrally responsible for implementing the risk management framework and identifying, assessing, monitoring, controlling, and communicating the Company’s risk exposures. Everest’s ERM function is independent of operating units and reports to the Chief Risk Officer. Everest’s senior management risk committees, including the Underwriting Risk Committee, Financial Risk Committee, and Operational Risk Committee supports ERM and the ERC with the compilation and analysis of risk insights with regards to exposure management and execution management.

Our Chief Risk Officer also reports to the Board’s Risk Management Committee (“RMC”), which helps execute the Board’s supervisory responsibility pertaining to ERM. The role of the RMC includes evaluation of the integrity and effectiveness of our ERM procedures, systems, and information; governance on major policy decisions pertaining to risk aggregation and minimization; and, assessment of our major decisions and preparedness levels pertaining to perceived material risks.

Regulatory Matters.

The Company and its insurance subsidiaries are subject to regulation under the insurance statutes of the various jurisdictions in which they conduct business, including all U.S. states, Canada and Singapore. These regulations vary from jurisdiction to jurisdiction and are generally designed to protect ceding insurance companies and policyholders by regulating the Company’s conduct of business, financial integrity and ability to meet its obligations. Many of these regulations require reporting of information designed to allow insurance regulators to closely monitor the Company’s performance.

Climate Risk Management.

As a global reinsurance and insurance organization, we recognize the potential impact of extreme natural perils on our world. We are also acutely aware of the fact that our industry plays a critical role in economic and social recovery after such extreme weather events. It is our policy to remain committed to providing solutions that can help our clients manage their own environmental risks in real and practical ways. We are also dedicated to managing and reducing our own ecological footprint wherever possible and considering environmental factors when making investment decisions.

Much of our business involves protecting clients through insurance and reinsurance from the impact of devastating natural catastrophes. As such, it is our policy to take a proactive approach to incorporating climate and weather-related risk into our underwriting procedure. To meet this challenge, our underwriting, actuarial and catastrophe modelling teams work together in researching and analyzing external raw climate/meteorological data in conjunction with our internal proprietary claims and loss information data to assess the geographical impacts of climate risk and develop predictive analytics models to refine our pricing tolerances and product development.This team approach to assessing the impact of climate risk on sustainability for Everest as well as our customers ensures that we are most accurately and responsibly providing specialized coverage to our clients for climate and other environment-related risks.

Insurance Holding Company Regulation.

Under applicable U.S. laws and regulations, no person, corporation or other entity may acquire a controlling interest in the Company, unless such person, corporation or entity has obtained prior approval for such acquisition from the insurance commissioners of Delaware and any other state in which the Company’s insurance subsidiaries are domiciled or deemed domiciled (as of this date, California). Under these laws, “control” is presumed when any person acquires, directly or indirectly, 10% or more of the voting securities of an insurance company. To obtain the approval of any change in control, the proposed acquirer must file an application with the relevant insurance commissioner disclosing, among other things, the background of the acquirer and that of its directors and officers, the acquirer’s financial condition and its proposed changes in the management and operations of the insurance company. U.S. state regulators

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also require prior notice or regulatory approval of material intercompany and inter-affiliate transactions within the holding company structure.

The Insurance Companies Act of Canada requires prior approval by the Minister of Finance of anyone acquiring a significant interest in an insurance company authorized to do business in Canada. In addition, the Company is subject to regulation by the insurance regulators of other U.S. states and foreign jurisdictions in which it is authorized to do business. Certain of these U.S. states and foreign jurisdictions impose regulations regulating the ability of any person to acquire control of an insurance company authorized to do business in that jurisdiction without appropriate regulatory approval similar to those described above.

Dividends.

Under Bermuda law, Everest Assurance is unable to declare or make payment of a dividend if it fails to meet its minimum solvency margin or minimum liquidity ratio. As a long-term insurer, Everest Assurance is also unable to declare or pay a dividend to anyone who is not a policyholder unless, after payment of the dividend, the value of the assets in its long-term business fund, as certified by its approved actuary, exceeds its liabilities for long-term business by at least the $250,000 minimum solvency margin. Prior approval of the Bermuda Monetary Authority is required if Everest Assurance’s dividend payments would exceed 25% of its respective prior year end statutory capital and surplus. At December 31, 2023, Bermuda Re, Everest International and Everest Assurance exceeded their solvency and liquidity requirements.

The payment of dividends to Holdings by Everest Re is subject to limitations imposed by Delaware law. Generally, Everest Re may only pay dividends out of its statutory earned surplus, which was $7.0 billion at December 31, 2023, and only after it has given 10 days prior notice to the Delaware Insurance Commissioner. During this 10-day period, the Commissioner may, by order, limit or disallow the payment of ordinary dividends if the Commissioner finds the insurer to be presently or potentially in financial distress. Further, the maximum amount of dividends that may be paid without the prior approval of the Delaware Insurance Commissioner in any twelve month period is the greater of (1) 10% of the insurer’s statutory surplus as of the end of the prior calendar year and (2) the insurer’s statutory net income (loss), not including realized capital gains (losses), for the prior calendar year. Accordingly, as of December 31, 2023, the maximum amount that will be available for the payment of dividends by Everest Re without triggering the requirement for prior approval of regulatory authorities in connection with a dividend is $877 million.

Insurance Regulation.

Everest Assurance, by virtue of its one-time election under section 953(d) of the U.S. Internal Revenue Code to be a U.S. income tax paying “Controlled Foreign Corporation”, is admitted to do business in the United States and Bermuda. In Bermuda, Everest Assurance is regulated by the Insurance Act 1978 (as amended) and related regulations (the “Act”). The Act establishes solvency and liquidity standards and auditing and reporting requirements and subjects Everest Assurance to the supervision, investigation and intervention powers of the Bermuda Monetary Authority. Under the Act, Everest Assurance is licensed as a Class 3A insurer for general business and as a Class C insurer for long-term business.

U.S. domestic property and casualty insurers, including reinsurers, are subject to regulation by their states of domicile and by those states in which they are licensed. The regulation of reinsurers is typically focused on financial condition, investments, management and operation. The rates and policy terms of reinsurance agreements are generally not subject to direct regulation by any governmental authority.

The operations of Everest Re’s foreign branch offices in Canada and Singapore are subject to regulation by the insurance regulatory officials of those jurisdictions. Management believes that the Company is in compliance with applicable laws and regulations pertaining to its business and operations.

Everest National, Everest Security, Everest Denali and Everest Premier are subject to regulations similar to the U.S. regulations applicable to Everest Re. In addition, these companies must comply with substantial regulatory requirements in each state where they conduct business. These additional requirements include, but are not limited to, rate and policy form requirements, as well as requirements on licensing, agent appointments, participation in residual markets and claim handling procedures. These regulations are primarily designed for the protection of policyholders. Everest Indemnity is a Delaware domestic surplus lines insurer and is eligible to write insurance on a surplus lines basis in the U.S.

Licenses.

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Everest Re is a licensed property and casualty insurer and/or reinsurer in all states, the District of Columbia, Puerto Rico and Guam. Such licensing enables U.S. domestic ceding company clients to take credit for uncollateralized reinsurance receivables from Everest Re in their statutory financial statements.

Everest Re is licensed as a property and casualty reinsurer in Canada. It is also authorized to conduct reinsurance business in Singapore and Brazil. Everest Re can also write reinsurance in other foreign countries. Because some jurisdictions require a reinsurer to register in order to be an acceptable market for local insurers, Everest Re is registered as a foreign insurer and/or reinsurer in the following countries: Bolivia, Brazil, Chile, China, Colombia, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, India, Mexico, Nicaragua, Panama, Paraguay, the Philippines, Singapore and Venezuela.

Everest National is licensed in 50 states, the District of Columbia and Puerto Rico.

Everest Indemnity is a Delaware domestic surplus lines insurer and is eligible to write insurance on a surplus lines basis in all 50 states, the District of Columbia and Puerto Rico.

Everest Security recently converted from a Georgia corporation to a Delaware corporation effective August 1, 2023, and is now licensed to write property and casualty insurance as an admitted insurance carrier in Delaware and Georgia, effective October 24, 2023 and in Alabama, effective December 19, 2023.

Everest Denali is licensed in all 50 states and the District of Columbia. Everest Premier is licensed in all 50 states and the District of Columbia.

Everest Assurance is registered as a Class 3A general business insurer in Bermuda and a Class C long-term insurer in Bermuda. By virtue of its one-time election under section 953(d) of the U.S. Internal Revenue Code to be a U.S. income tax paying “Controlled Foreign Corporation,” Everest Assurance may operate in both the U.S. and Bermuda. Everest Assurance is also considered an approved/eligible alien surplus lines insurer in all 50 states and the District of Columbia. In addition, Everest Assurance can also write reinsurance in other foreign countries. Because some jurisdictions require a reinsurer to register in order to be an acceptable market for local insurers, Everest Assurance is registered as a foreign insurer and/or reinsurer in the following countries: Bolivia, Colombia, Chile, Ecuador, Guatemala, Mexico and Paraguay.

Periodic Examinations.

Led by their states of domicile, U.S. insurance companies are subject to periodic financial examination of their affairs, usually every three to five years. U.S. insurance companies are also subject to examinations by the various state insurance departments where they are licensed concerning compliance with applicable conduct of business regulations. In addition, non-U.S. insurance companies and branches are subject to examination and review by regulators in their respective jurisdictions. In 2023, there were no reports of these examinations or reviews issued that contained any material findings or recommendations.

NAIC Risk-Based Capital Requirements.

The U.S. National Association of Insurance Commissioners (“NAIC”) has developed a formula to measure the statutory minimum amount of capital required for a property and casualty insurance company to support its overall business operations in light of its size and risk profile. The major categories of a company’s risk profile are its asset risk, credit risk, and underwriting risk. The standard is an effort to anticipate insolvencies. This allows regulators to take actions that could limit the impact of these insolvencies on policyholders.

Under the approved formula, a company’s adjusted statutory surplus (end of period surplus adjusted for items not currently applicable to the Everest companies) is compared to the Risk-Based Capital Model (“RBC”) developed by the NAIC. If this ratio is above a minimum threshold, no action is necessary. Below this threshold are four distinct action levels at which an insurer’s domiciliary state regulator can intervene with increasing degrees of authority over an insurer as the ratio of adjusted surplus to RBC decreases. The mildest intervention requires an insurer to submit a plan of appropriate corrective actions. The most severe action requires an insurer to be rehabilitated or liquidated.

Based on their financial positions, as of December 31, 2023, Everest Re, Everest National, Everest Indemnity, Everest Security, Everest Denali and Everest Premier exceed the minimum RBC thresholds.

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Tax Matters.

The following summary of the taxation of the Company is based on current law. There can be no assurance that legislative, judicial, or administrative changes will not be enacted that might materially affect this summary.

The Company conducts business and is subject to taxation in the United States. Non-U.S. branches of the Company are subject to both local taxation in the jurisdictions in which they operate and U.S. corporate income tax but are generally relieved from double taxation through the application of foreign tax credits against their U.S. income tax liability.

On August 16, 2022, the Inflation Reduction Act of 2022 (“IRA”) was enacted. We have evaluated the tax provisions of the IRA, the most significant of which are the corporate alternative minimum tax and the share repurchase excise tax, and do not expect the legislation to have a material impact on our results of operations.

Available Information.

The Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports are available free of charge on the Securities and Exchange Commission (“SEC”) website at https://www.sec.gov as soon as reasonably practicable after such reports are electronically filed with the SEC.

ITEM 1A. RISK FACTORS

Our business, results of operations and financial conditions are subject to numerous risks and uncertainties.While we seek to identify, manage and mitigate risks to our business, risk and uncertainty cannot be eliminated or necessarily predicted.In connection with any investment decision with respect to our securities, you should carefully consider the following risk factors, as well as the other information contained in this report and our other filings with the SEC.Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also impair our business operations.Should any of these risks materialize, actual results could differ materially from the disclosed information, our business, financial condition, and results of operations could be materially and adversely affected and our ability to service our debt, our debt ratings and our ability to issue new debt could decline significantly.

UNDERWRITING

Our results could be adversely affected by catastrophic events.

We are exposed to unpredictable catastrophic events, including weather-related and other natural catastrophes, as well as acts of terrorism. The frequency and/or severity of catastrophic events may be impacted in the future by the continued effects of climate change. Climate change and resulting changes in global temperatures, weather patterns, and sea levels may both increase the frequency and severity of natural catastrophes and the resulting losses in the future and impact our risk modeling assumptions. We cannot predict the impact that changing climate conditions, if any, may have on our results of operations or our financial condition. Additionally, we cannot predict how legal, regulatory and/or social responses to concerns around global climate change and the resulting impact on various sectors of the economy may impact our business. Any material reduction in our operating results caused by the occurrence of one or more catastrophes could inhibit our ability to pay dividends or to meet our interest and principal payment obligations. By way of illustration, during the past five calendar years, pre-tax catastrophe losses, net of reinsurance, were as follows:


Calendar year:	Pre-tax net catastrophe losses
(Dollars in millions)
2023	$	323
2022	984
2021	940
2020	397
2019	574

Our losses from future catastrophic events could exceed our projections.

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and decide on the placement of retrocessional coverage or other actions to limit the extent of potential losses in a given geographic area. These loss projections are approximations, reliant on a mix of quantitative and qualitative processes, and actual losses may exceed the projections by a material amount.

If our loss reserves are inadequate to meet our actual losses, our net income would be reduced or we could incur a loss.

We are required to maintain reserves to cover our estimated ultimate liability of losses and LAE for both reported and unreported claims incurred. These reserves are only estimates of what we believe the settlement and administration of claims will cost based on facts and circumstances known to us. In setting reserves for our reinsurance liabilities, we rely on claims data supplied by our ceding companies and brokers, and we employ actuarial and statistical projections. The information received from our ceding companies is not always timely or accurate, which can contribute to inaccuracies in our loss projections. Because of the uncertainties that surround our estimates of loss and LAE reserves, we cannot be certain that ultimate losses and LAE payments will not exceed our estimates. If our reserves are deficient, we would be required to increase loss reserves in the period in which such deficiencies are identified which would cause a charge to our earnings and a reduction of capital. During the past five calendar years, the reserve re-estimation process resulted in an increase to our pre-tax net income in 2023 and resulted in a decrease to our pre-tax net income in 2022, 2021, 2020 and 2019:


Calendar year:	Effect on pre-tax net income
(Dollars in millions)
2023	$	21	increase
2022	8		decrease
2021	5		decrease
2020	200		decrease
2019	44		decrease

The difficulty in estimating our reserves is significantly more challenging as it relates to reserving for potential asbestos and environmental (“A&E”) liabilities. As of December 31, 2023, 1.6% of our gross reserves were comprised of A&E reserves. A&E liabilities are especially hard to estimate for many reasons, including the long delays between exposure and manifestation of any bodily injury or property damage, difficulty in identifying the source of the asbestos or environmental contamination, long reporting delays and difficulty in properly allocating liability for the asbestos or environmental damage. Legal tactics and judicial and legislative developments affecting the scope of insurers’ liability, which can be difficult to predict, also contribute to uncertainties in estimating reserves for A&E liabilities.

The failure to accurately assess underwriting risk and establish adequate premium rates could reduce our net income or result in a net loss.

Our success depends on our ability to accurately assess the risks associated with the businesses on which the risk is retained. If we fail to accurately assess the risks we retain, we may fail to establish adequate premium rates to cover our losses and LAE. This could reduce our net income and even result in a net loss.

In addition, losses may arise from events or exposures that are not anticipated when the coverage is priced. In addition to such unanticipated events, we also face the unanticipated expansion of our exposures, particularly in long-tail liability lines. An example of this is the expansion over time of the scope of insurers’ legal liability within the mass tort cases, particularly for A&E exposures discussed above.

Decreases in pricing for property and casualty reinsurance and insurance could reduce our net income.

The worldwide reinsurance and insurance businesses are highly competitive, as well as cyclical by product and market. These cycles, as well as other factors that influence aggregate supply and demand for property and casualty insurance and reinsurance products, are outside of our control. The supply of (re)insurance is driven by prevailing prices and levels of capacity that may fluctuate in response to a number of factors, including large catastrophic losses and investment returns being realized in the insurance industry. Demand for (re)insurance is influenced by underwriting results of insurers and insureds, including catastrophe losses, and prevailing general economic conditions. If any of these factors were to result in a decline in the demand for (re)insurance or an overall increase in (re)insurance capacity, our net income could decrease.

Table of Contents

If we are unable or choose not to purchase reinsurance and transfer risk to the reinsurance markets, our net income could be reduced or we could incur a net loss in the event of unusual loss experience.

We are generally less reliant on the purchase of reinsurance than many of our competitors, in part because of our strategic emphasis on underwriting discipline and management of the cycles inherent in our business. We try to separate our risk-taking process from our risk mitigation process in order to avoid developing too great a reliance on reinsurance. With the expansion of the capital markets into insurance linked financial instruments, we increased our use of capital market products for catastrophe reinsurance. In addition, we have increased some of our quota share contracts with larger retrocessionaires. The percentage of business that we reinsure may vary considerably from year to year, depending on our view of the relationship between cost and expected benefit for the contract period.


Percentage of ceded written premiums to gross written premiums	2023		2022		2021		2020		2019
Unaffiliated	13.3	%	13.2	%	14.3	%	14.9	%	16.7	%
Affiliated	3.9	%	3.8	%	4.9	%	1.7	%	1.4	%

FINANCIAL

A decline in our financial strength ratings could adversely affect our standing among cedents and broker partners and our ability to grow premiums and earnings.

Our active insurance company subsidiaries currently hold financial strength ratings assigned by third-party rating agencies which assess and rate the claims paying ability and financial strength of insurers and reinsurers. Financial strength ratings are used by cedents, agents and brokers to assess the financial strength and credit quality of reinsurers and insurers. A downgrade or withdrawal of any of these ratings could adversely affect our ability to market our reinsurance and insurance products, our ability to compete with other reinsurers and insurers and our ability to write new business, which in turn could impact our profitability and results.

Consistent with market practice, much of our treaty reinsurance business allows the ceding company to terminate the contract or seek collateralization of our obligations in the event of a rating downgrade below a certain threshold. The termination provision would generally be triggered if a rating fell below A.M. Best’s A- rating level. To a lesser extent, Everest Re also has modest exposure to reinsurance contracts that contain provisions for obligatory funding of outstanding liabilities in the event of a rating agency downgrade. Those provisions would also generally be triggered if Everest Re’s rating fell below A.M. Best’s A- rating level.

See also ITEM 1, “Financial Strength Ratings”.

A decline in our debt ratings could increase our borrowing costs and adversely affect our ability to access capital markets at attractive rates.

If our debt ratings are downgraded, we could incur higher borrowing costs, higher cost of capital, and our ability to access the capital markets at attractive rates could be impacted. We are unable to provide any guarantees on whether or not or ratings may be downgraded by any of our rating agencies in the future.

Employees.

~~As of February 1, 2021, the Company employed 1,487 persons. Management believes that employee relations are good. None~~

The recent emergence of the ~~Company’s employees are subject to collective bargaining agreements,~~Middle East war and the ~~Company is not aware of any current efforts to implement such agreements.~~

~~Available Information.~~

~~The Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K~~ongoing war in the Ukraine are evolving events. Economic and amendments to those reports are available free of charge through the Company’s internet website at http://www.everestregroup.com as soon as reasonably practicable after such reports are electronically filed with the SEC.

~~ITEM 1A. RISK FACTORS~~

~~In addition~~legal sanctions have been levied against Russia, specific named individuals and entities connected to the other information provided in this report, the following risk factors should be considered when evaluating an investment in our securities. If the circumstances contemplated by the individual risk factors materialize, our business, financial condition and results of operations could be materially and adversely affected and our ability to service our debt, our debt ratings and our ability to issue new debt could decline significantly.

~~Risks relating to our Business~~

~~Fluctuations in the financial markets could result in investment losses.~~

Prolonged and severe disruptions in the overall public debt and equity markets, such as occurred during 2008, or temporary disruption, as occurred in early 2020 related to the Covid-19 pandemic, could result in significant realized and unrealized losses in our investment portfolio. Although financial markets have significantly improved since 2008, they could deteriorate in the future. There could also be disruption in individual market sectors, such as occurred in the energy sector in recent years. Such declines in the financial markets could result in significant realized and unrealized losses on investments and could have a material adverse impact on our results of operations, equity, business and insurer financial strength and debt ratings.

~~Our results could be adversely affected by catastrophic events.~~

~~We are exposed to unpredictable catastrophic events, including weather-related and other natural catastrophes,~~Russian government, as well as acts of terrorism. Any material reduction in our operating results caused by the occurrence of one or more catastrophes could inhibit our ability to pay dividends or to meet our interest and principal payment obligations. By way of illustration, during the past five calendar years, pre-tax catastrophe losses, net of reinsurance, were as follows:

Calendar year:
Pre-tax catastrophe losses
(Dollars in millions)

2020
$
397.4
2019

573.7
2018

1,712.6
2017

941.4
2016

109.2

~~Our losses from future catastrophic events could exceed our projections.~~

We use projections of possible losses from future catastrophic events of varying types and magnitudes as a strategic underwriting tool. We use these loss projections to estimate our potential catastrophe losses in certain geographic areas and decide on the placement of retrocessional coverage or other actions to limit the extent of potential losses in a given geographic area. These loss projections are approximations, reliant on a mix of quantitative and qualitative processes, and actual losses may exceed the projections by a material amount, resulting in a material adverse effect on our financial condition and results of operations.

~~If our loss reserves are inadequate to meet our actual losses, our net income would be reduced or we could incur a loss.~~

We are required to maintain reserves to cover our estimated ultimate liability of losses and loss adjustment expenses (“LAE”) for both reported and unreported claims incurred. These reserves are only estimates of what we believe the settlement and administration of claims will cost based on facts and circumstances known to us. In setting reserves for our reinsurance liabilities, we rely on claim data supplied by our ceding companies and brokers and we employ actuarial and statistical projections. The information received from our ceding companies is not always timely or accurate, which can contribute to inaccuracies in our loss projections. Because of the uncertainties that surround our estimates of loss and LAE reserves, we cannot be certain that ultimate losses and LAE payments will not exceed our estimates. If our reserves are deficient, we would be required to increase loss reservesbusinesses located in the ~~period~~Russian Federation and/or owned by Russian nationals in which such deficiencies are identified which would cause a charge to our earnings and a reduction of capital. By way of illustration, during the past five calendar years, the reserve re-estimation process resulted in a decrease to our pre-tax net income in 2020, 2019 and 2018, and an increase for the years 2017 and 2016:

Calendar year:
Effect on pre-tax net income
(Dollars in millions)

2020
$
200.3
decrease
2019

44.4
decrease
2018

558.8
decrease
2017

117.7
increase
2016

91.7
increase

The difficulty in estimating our reserves is significantly more challenging as it relates to reserving for potential asbestos and environmental (“A&E”) liabilities. At December 31, 2020, 1.9% of our gross reserves were comprised of A&E reserves. A&E liabilities are especially hard to estimate for many reasons,numerous countries, including the ~~long delays between exposure~~United States. The significant political and ~~manifestation of any bodily injury or property damage, difficulty in identifying the source of the asbestos or environmental contamination, long reporting delays~~economic uncertainty surrounding these wars and ~~difficulty in properly~~

allocating liability for the asbestos or environmental damage. Legal tactics and judicial and legislative developments affecting the scope of insurers’ liability, which can be difficult to predict, also contribute to uncertainties in estimating reserves for A&E liabilities.

~~The failure to accurately assess underwriting risk and establish adequate premium rates could reduce our net income or result in a net loss.~~

~~Our success depends on our ability to accurately assess the risks~~ associated with the businesses on which the risk is retained. If we fail to accurately assess the risks we retain, we may fail to establish adequate premium rates to cover our losses and LAE. This could reduce our net income and even result in a net loss.

In addition, losses may arise from events or exposures that are not anticipated when the coverage is priced. In addition to unanticipated events, we also face the unanticipated expansion of our exposures, particularly in long-tail liability lines. An example of this is the expansion over time of the scope of insurers’ legal liability within the mass tort arena, particularly for A&E exposures discussed above.

~~Decreases in pricing for property and casualty reinsurance and insurance could reduce our net income.~~

The worldwide reinsurance and insurance businesses are highly competitive, as well as cyclical by product and market. These cycles, as well as other factors that influence aggregate supply and demand for property and casualty insurance and reinsurance products, are outside of our control. The supply of (re)insurance is driven by prevailing prices and levels of capacity that may fluctuate in response to a number of factors including large catastrophic lossessanctions have impacted economic and investment ~~returns being realized in~~markets both within Russia, Ukraine, the ~~insurance industry. Demand for (re)insurance is influenced by underwriting results~~Middle East region, and around the world.

Table of insurers and insureds, including catastrophe losses, and prevailing general economic conditions. If any of these factors were to result in a decline in the demand for (re)insurance or an overall increase in (re)insurance capacity, our net income could decrease.

~~If rating agencies downgrade the ratings of our insurance subsidiaries, future prospects for growth and profitability could be significantly and adversely affected.~~

Our active insurance company subsidiaries currently hold financial strength ratings assigned by third-party rating agencies which assess and rate the claims paying ability and financial strength of insurers and reinsurers. Our active subsidiaries that have been rated carry an “A+” (“Superior”) rating from A.M. Best. Everest Re, Everest National, Everest Indemnity and Everest Assurance all hold an “A+” (“Strong”) rating from Standard & Poor’s and Everest Assurance holds an “A” (“Strong”) rating from this same agency. Everest Re holds an “A1” (“upper-medium grade”) rating from Moody’s. Financial strength ratings are used by client companies and agents and brokers that place the business as an important means of assessing the financial strength and quality of reinsurers. A downgrade or withdrawal of any of these ratings might adversely affect our ability to market our insurance products and could have a material and adverse effect on future prospects for growth and profitability.

Consistent with market practice, much of our treaty reinsurance business allows the ceding company to terminate the contract or seek collateralization of our obligations in the event of a rating downgrade below a certain threshold. The termination provision would generally be triggered if a rating fell below A.M. Best’s A- rating level, which is three levels below Everest Re’s current rating of A+. To a lesser extent, Everest Re also has modest exposure to reinsurance contracts that contain provisions for obligatory funding of outstanding liabilities in the event of a rating agency downgrade. Those provisions would also generally be triggered if Everest Re’s rating fell below A.M. Best’s A- rating level.

~~The failure of our insureds, intermediaries and reinsurers to satisfy their obligations to us could reduce our income.~~

Contents

We are generally less reliant on the purchase of reinsurance than many of our competitors, in part because of our strategic emphasis on underwriting discipline and management of the cycles inherent in our business. We try to separate our risk taking process from our risk mitigation process in order to avoid developing too great a reliance on reinsurance. With the expansion of the capital markets into insurance linked financial instruments, we increased our use of capital market products for catastrophe reinsurance starting in 2014. In addition, some of our quota share contracts with larger retrocessions have increased. The percentage of business that we reinsure may vary considerably from year to year, depending on our view of the relationship between cost and expected benefit for the contract period.

We entered into affiliated whole account quota share reinsurance agreements for 2002 through 2017 with Bermuda Re but we did not renew the quota share reinsurance agreement with Bermuda Re after 2017. We believe that the terms, conditions and pricing of the quota share agreements reflect arm’s length market conditions.

Percentage of ceded written premiums to gross written premiums
2020

2019

2018

2017

2016
Unaffiliated
14.9
%

16.7
%

14.7
%

14.6
%

13.6
%
Affiliated
1.7
%

1.4
%

8.7
%

38.4
%

45.9
%

~~If we are unable to purchase affiliated or unaffiliated reinsurance in the future, we may have to reduce our premium volume and we may be more exposed to reductions in net income from large losses.~~

~~Our industry is highly competitive and we may not be able to compete successfully in the future.~~

Our industry is highly competitive and subject to pricing cycles that can be pronounced. We compete globally in the United States, international reinsurance and insurance markets with numerous competitors. Our competitors include independent reinsurance and insurance companies, subsidiaries or affiliates of established worldwide insurance companies, reinsurance departments of certain insurance companies and domestic and international underwriting operations, including underwriting syndicates at Lloyd’s of London.

According to Standard & Poor’s, Group ranks among the top ten global reinsurance groups, where more than two-thirds of the market share is concentrated. The worldwide net premium written by the Top 40 global reinsurance groups, for both life and non-life business, was estimated to be $225.1 billion in 2018 according to data compiled by Standard & Poor’s. In addition to competitors, the entry of alternative capital market products and vehicles provide additional sources of reinsurance and insurance capacity and increased competition.

~~We are dependent on our key personnel.~~

Our success has been, and will continue to be, dependent on our ability to retain the services of our Chairman, Joseph V. Taranto (age 71) and existing key executive officers and to attract and retain additional qualified personnel in the future. The loss of the services of any key executive officer or the inability to hire and retain other highly qualified personnel in the future could adversely affect our ability to conduct business. Generally, we consider key executive officers to be those individuals who have the greatest influence in setting overall policy and controlling operations: President and Chief Executive Officer, Juan C. Andrade (age 55), Executive Vice President and Chief Financial Officer, Mark Kociancic (age 51), Executive Vice President and Chief Operating Officer, Jim Williamson (age 47), Executive Vice President and Chief Executive Officer Reinsurance Division, John P. Doucette (age 55), Executive Vice President, General Counsel, Chief Compliance Officer and

~~Secretary, Sanjoy Mukherjee (age 54) and Executive Vice President, President and Chief Executive Officer of the Everest Insurance~~^® Division, Mike Karmilowicz (age 52). We have employment contracts with all of our key officers, which contain automatic renewal provisions that provide for the contracts to continue indefinitely unless sooner terminated in accordance with the contract or as otherwise may be agreed.

~~Our investment values and investment income could decline because they are exposed to interest rate, credit and market risks.~~

A significant portion of our investment portfolio consists of fixed income securities and smaller portions consist of equity securities and other investments. Both the fair market value of our invested assets and associated investment income fluctuate depending on general economic and market conditions. For example, the fair market value of our predominant fixed income portfolio generally increases or decreases inversely to fluctuations in interest rates. The market value of our fixed income securities could also decrease as a result of a downturn in the business cycle that causes the credit quality of such securities to deteriorate. The net investment income that we realize from future investments in fixed income securities will generally increase or decrease with interest rates.

Interest rate fluctuations also can cause net investment income from fixed income investments that carry prepayment risk, such as mortgage-backed and other asset-backed securities, to differ from the income anticipated from those securities at the time of purchase. In addition, if issuers of individual investments are unable to meet their obligations, investment income will be reduced and realized capital losses may arise.

The majority of our fixed income securities are classified as available for sale and temporary changes in the market value of these investments are reflected as changes to our stockholder’s equity. Our actively managed equity security portfolios are fair valued and any changes in fair value are reflected as net realized capital gains or losses. As a result, a decline in the value of our securities reduces our capital or could cause us to incur a loss.

We have invested a portion of our investment portfolio in equity securities. The value of these assets fluctuates with changes in the markets. In times of economic weakness, the fair value of these assets may decline, and may negatively impact net income. We also invest in non-traditional investments which have different risk characteristics than traditional fixed income and equity securities. These alternative investments are comprised primarily of private equity limited partnerships. The changes in value and investment income/(loss) for these partnerships may be more volatile than over-the-counter securities.

~~The following table quantifies the portion of our investment portfolio that consists of fixed income securities, equity securities and investments that carry prepayment risk.~~

At

(Dollars in millions)
December 31, 2020

% of Total
Mortgage-backed securities

Commercial
$
550.1

3.5
%
Agency residential

965.1

6.1
%
Non-agency residential

3.2

-
%
Other asset-backed

2,474.2

15.6
%
Total asset-backed

3,992.6

25.1
%
Other fixed income

6,651.0

41.8
%
Total fixed income, at market value

10,643.6

66.9
%
Equity securities - at fair value

1,288.8

8.1
%
Other invested assets

1,094.9

6.9
%
Other invested assets, at fair value

1,796.5

11.3
%
Cash and short-term investments

1,086.4

6.8
%
Total investments and cash
$
15,910.2

100.0
%

~~We may experience foreign currency exchange losses that reduce our net income and capital levels.~~

Through our international operations, we conduct business in a variety of foreign (non-U.S.) currencies, principally the Canadian dollar and the Singapore dollar. Assets, liabilities, revenues and expenses denominated in foreign currencies are exposed to changes in currency exchange rates. Our reporting currency is the U.S. dollar, and exchange rate fluctuations, especially relative to the U.S. dollar, may materially impact our results and financial position. In 2020, we wrote approximately 15.8% of our coverages in non-U.S. currencies; as of December 31, 2020, we maintained approximately 8.6% of our investment portfolio in investments denominated in non-U.S. currencies. During 2020, 2019 and 2018, the impact on our quarterly pre-tax net income from exchange rate fluctuations ranged from a loss of $7.7 million to a gain of $5.2 million.

~~Changes in the method for determining LIBOR and the potential replacement of LIBOR may affect our cost of capital and net investment income.~~

On July 27, 2017, the UK Financial Conduct Authority announced that it intends to stop persuading or compelling banks to submit LIBOR rates after 2021, which is expected to result in these widely used reference rates no longer being available. Potential changes to LIBOR, as well as uncertainty related to such potential changes and the establishment of any alternative reference rates, may adversely affect the market for LIBOR-based securities and could adversely impact the interest rate on our long term subordinate notes. In addition, the discontinuance of LIBOR or changes or reforms to the determination or supervision of LIBOR may result in a sudden or prolonged increase or decrease in reported LIBOR, which could have an adverse impact on the market for LIBOR-based securities or the value of our investment portfolio.

~~We are subject to cybersecurity risks that could negatively impact our business operations.~~

We are dependent upon our information technology platform, including our processing systems, data and electronic transmissions in our business operations. Security breaches could expose us to the loss or misuse of our information, litigation and potential liability. In addition, cyber incidents that impact the availability, reliability, speed, accuracy or other proper functioning of these systems could have a significant negative impact on our operations and possibly our results. An incident could also result in a violation of applicable privacy and other laws, damage our reputation, cause a loss of customers or give rise to monetary fines and other penalties, which could be significant. Management is not aware of a cybersecurity incident that has had a material impact on our operations.

The NAIC has adopted an Insurance Data Security Model Law, which, when adopted by the states will require insurers, insurance producers and other entities required to be licensed under state insurance laws to comply with certain requirements under state insurance laws, such as developing and maintaining a written information security program, conducting risk assessments and overseeing the data security practices of third-party vendors. In addition, certain state insurance regulators are developing or have developed regulations that may impose regulatory requirements relating to cybersecurity on insurance and reinsurance companies (potentially including insurance and reinsurance companies that are not domiciled, but are licensed, in the relevant state). For example, the New York State Department of Financial Services has adopted a regulation pertaining to cybersecurity for all banking and insurance entities under its jurisdiction, effective as of March 1, 2017, which applies to us. We cannot predict the impact these laws and regulations will have on our business, financial condition or results of operations, but our insurance and reinsurance companies could incur additional costs resulting from compliance with such laws and regulations.

~~The continuing COVID-19 pandemic has adversely affected, and may materially and adversely affect, our results of operations, financial position and liquidity in the future.~~

The ongoing COVID-19 pandemic, including the related impact on the U.S. and global economies, has adversely affected our results of operations. We expect the pandemic and its impact on our business to continue and potentially even worsen, but we cannot predict the magnitude or duration of its continued impact, particularly given the great uncertainties associated with COVID-19, including regarding the reopening of the U.S. and global economies and the recovery from its economic and other effects. The full impact of COVID-19 on our results of operations, financial position and liquidity is not yet known, and likely will not be known for some time, but includes the following:

~~Claim Losses Related to COVID-19 May Exceed Reserves~~: We have established reserves for COVID-19-related losses. Our reserves represent management’s best estimate of what the settlement and claims administration will cost for claims that have occurred, whether reported or unreported. Given the great uncertainties associated with COVID-19 and its impact and the limited information upon which our current assumptions and assessments have been made, our preliminary reserves and the underlying estimated level of claim losses and costs arising from COVID-19 may materially change.

~~Adverse Legislative and Regulatory Action~~: Legislative and regulatory initiatives taken or which may be taken in response to COVID-19 may adversely affect us. For example, our business may be subject to, certain initiatives, including, but not limited to: legislative and regulatory action that seeks to retroactively mandate coverage for losses which our insurance policies would not otherwise cover and which were not priced to cover; actions prohibiting us from cancelling insurance policies in accordance with our policy terms or non-renewing policies at their natural expiration; and/or orders to provide premium refunds, grant extended grace periods for premium payments, and provide extended time to pay past due premiums. Any such action would likely increase both our underwriting losses and our expenses and any legal challenges to any such action could take years to resolve.

~~Reduction in Premiums~~: The demand for insurance is significantly influenced by general economic conditions. Consequently, reduced economic activity relating to the COVID-19 pandemic is likely to decrease demand for our insurance products and services and negatively impact our premium volumes (and, in certain cases, may result in return of premiums due to a decrease in exposures). This may continue for an indefinite period, with the magnitude of the impact impossible to predict.

~~Investments~~: Further disruptions in global financial markets due to the continuing impact of COVID-19 could cause us to incur additional unrealized and/or realized investment losses, including credit impairments in our fixed maturity portfolio. In addition, the economic uncertainty resulting from COVID-19 may result in a decline in interest rates, which may negatively impact our future net investment income.

~~Credit Risk~~: As credit risk is generally a function of the economy, we face greater credit risk from our policyholders, independent agents and brokers in connection with the payment and remittance of premiums as a result of the economic conditions caused by COVID-19. Similarly, our credit risk related to the reimbursement of deductibles from policyholders and in connection with reinsurance recoverables has increased.

~~Operational Disruptions and Costs~~: Our operations could be disrupted if key members of our senior management or a significant percentage of our workforce or the workforce of our agents, brokers, suppliers or other third party service providers are unable to continue to work because of illness, government directives or otherwise. In addition, our agents, brokers, suppliers and other third party service providers, which we rely on for key aspects of our operations, are subject to risks and uncertainties related to the COVID-19 pandemic, which may interfere with their ability to fulfill their respective commitments and responsibilities to us in a timely manner and in accordance with the agreed-upon terms. In response to the COVID-19 pandemic, we have implemented remote working policies which have resulted in disruptions to our business routines, heightened risk to cybersecurity attacks and data security incidents and a greater dependency on internet and telecommunication access and capabilities.

~~Risks Relating to Regulation~~

~~Insurance laws and regulations restrict our ability to operate and any failure to comply with those laws and regulations could have a material adverse effect on our business.~~

statutory thresholds. These laws also generally require approval of changes of control of insurance companies. The application of these laws could affect our liquidity and ability to pay dividends, interest and other payments on securities, as applicable, and could restrict our ability to expand our business operations through acquisitions of new insurance subsidiaries. We may not have or maintain all required licenses and approvals or fully comply with the wide variety of applicable laws and regulations or the relevant authority’s interpretation of the laws and regulations. If we do not have the requisite licenses and approvals or do not comply with applicable regulatory requirements, the insurance regulatory authorities could preclude or temporarily suspend us from carrying on some or all of our activities or monetarily penalize us. These types of actions could have a material adverse effect on our business. To date, no material fine, penalty or restriction has been imposed on us for failure to comply with any insurance law or regulation.

As a result of the previous dislocation of the financial markets, Congress and the previous Presidential administration in the United States implemented changes in the way the financial services industry is regulated. Some of these changes are also impacting the insurance industry. For example, the U.S. Treasury established the Federal Insurance Office with the authority to monitor all aspects of the insurance sector, monitor the extent to which traditionally underserved communities and consumers have access to affordable non-health insurance products, to represent the United States on prudential aspects of international insurance matters, to assist with administration of the Terrorism Risk Insurance Program and to advise on important national and international insurance matters. In addition, several European regulatory bodies are in process of updating existing or developing new capital adequacy directives for insurers and reinsurers. The future impact of such initiatives or new initiatives from the current Government Administration, if any, on our operation, net income (loss) or financial condition cannot be determined at this time.

~~Risk Relating to our seCURITIES~~

~~Because of our holding company structure, our ability to pay dividends, interest and principal is dependent on our receipt of dividends, loan payments and other funds from our subsidiaries.~~

We are a holding company, whose most significant asset consists of the stock of our operating subsidiaries. As a result, our ability to pay dividends, interest or other payments on our securities in the future will depend on the earnings and cash flows of the operating subsidiaries and the ability of the subsidiaries to pay dividends or to advance or repay funds to us. This ability is subject to general economic, financial, competitive, regulatory and other factors beyond our control. Payment of dividends and advances and repayments from some of the operating subsidiaries are regulated by U.S., state and foreign insurance laws and regulatory restrictions, including minimum solvency and liquidity thresholds. Accordingly, the operating subsidiaries may not be able to pay dividends or advance or repay funds to us in the future, which could prevent us from paying dividends, interest or other payments on our securities.

~~Risk Relating to taxation~~

~~If U.S. tax law changes, our net income may be impacted.~~

The 2017 TCJA addressed concerns by members of Congress regarding U.S. corporations moving their place of incorporation to low-tax jurisdictions to obtain a competitive advantage over domestic corporations that are subject to the U.S. corporate tax rate of 21%. Specifically, it addressed their concern over a perceived competitive advantage that foreign-controlled insurers and reinsurers may have had over U.S. controlled insurers and reinsurers resulting from the purchase of reinsurance by U.S. insurers from affiliates operating in foreign jurisdictions, including Bermuda. Such affiliated reinsurance transactions may subject the U.S. ceding companies to a Base Erosion and Anti-abuse Tax (“BEAT”) of 10% from 2019 to 2025 and 12.5% thereafter which may exceed its regular income tax. In addition, new proposed and final regulations may further limit the ability of the Company to execute alternative capital balancing transactions with unrelated parties. This would further impact our net income and effective tax rate.

~~ITEM 1B. UNRESOLVED STAFF COMMENTS~~

~~None.~~

~~ITEM 2. PROPERTIES~~

As of December 2020, Everest Re has relocated its corporate offices to Warren, NJ with approximately 321,500 square feet of leased office space. The Company’s other 18 locations occupy a total of approximately 219,950 square feet, all of which are leased.

~~ITEM 3. LEGAL PROCEEDINGS~~

~~Aside from litigation and arbitrations related to these insurance and reinsurance agreements, the Company is not a party to any other material litigation or arbitration.~~

~~ITEM 4. MINE SAFETY DISCLOSURES~~

~~Not applicable.~~

~~PART II~~

~~ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES~~

Market Information and Holder of Common Stock.

~~As of December 31, 2020, all of the Company’s common stock was owned by Holdings Ireland and was not publicly traded.~~

Dividend History and Restrictions.

The Company did not pay any dividends in 2020, 2019 and 2018. The declaration and payment of future dividends, if any, by the Company will be at the discretion of the Board of Directors and will depend upon many factors, including the Company’s earnings, financial condition, business needs and growth objectives, capital and surplus requirements of its operating subsidiaries, regulatory restrictions, rating agency considerations and other factors. As an insurance holding company, the Company is dependent on dividends and other permitted payments from its subsidiaries to pay cash dividends to its stockholder. The payment of dividends to Holdings by Everest Re is subject to limitations imposed by Delaware law. Generally, Everest Re may only pay dividends out of its statutory earned surplus, which was $5,276.0 million at December 31, 2020, and only after it has given 10 days prior notice to the Delaware Insurance Commissioner. During this 10-day period, the Commissioner may, by order, limit or disallow the payment of ordinary dividends if the Commissioner finds the insurer to be presently or potentially in financial distress. Further, the maximum amount of dividends that may be paid without the prior approval of the Delaware Insurance Commissioner in any twelve month period is the greater of (1) 10% of an insurer’s statutory surplus as of the end of the prior calendar year or (2) the insurer’s statutory net income, not including realized capital gains, for the prior calendar year. The maximum amount that is available for the payment of dividends by Everest Re in 2021 without prior regulatory approval is $592.1 million.

Recent Sales of Unregistered Securities.

~~None.~~

~~ITEM 6. SELECTED FINANCIAL DATA~~

~~Information for Item 6 is not required pursuant to General Instruction I(2) of Form 10-K.~~

~~ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation~~

The following is a discussion and analysis of our results of operations and financial condition. It should be read in conjunction with the Consolidated Financial Statements and accompanying notes thereto presented under ITEM 8, “Financial Statements and Supplementary Data”.

~~Industry Conditions.~~

The worldwide reinsurance and insurance businesses are highly competitive, as well as cyclical by product and market. As such, financial results tend to fluctuate with periods of constrained availability, higher rates and stronger profits followed by periods of abundant capacity, lower rates and constrained profitability. Competition in the types of reinsurance and insurance business that we underwrite is based on many factors, including the perceived overall financial strength of the reinsurer or insurer, ratings of the reinsurer or insurer by A.M. Best and/or Standard & Poor’s, underwriting expertise, the jurisdictions where the reinsurer or insurer is licensed or otherwise authorized, capacity and coverages offered, premiums charged, other terms and conditions of the reinsurance and insurance business offered, services offered, speed of claims payment and reputation and experience in lines written. Furthermore, the market impact from these competitive factors related to reinsurance and insurance is generally not consistent across lines of business, domestic and international geographical areas and distribution channels.

Worldwide insurance and reinsurance market conditions historically have been competitive. Generally, there was ample insurance and reinsurance capacity relative to demand, as well as, additional capital from the capital markets through insurance linked financial instruments. These financial instruments such as side cars, catastrophe bonds and collateralized reinsurance funds, provided capital markets with access to insurance and reinsurance risk exposure. The capital markets demand for these products was being primarily driven by a low interest environment and the desire to achieve greater risk diversification and potentially higher returns on their investments. This increased competition was generally having a negative impact on rates, terms and conditions; however, the impact varies widely by market and coverage.

The pandemic has caused significant volatility in the global financial markets. Interest rates plummeted, credit spreads widened and the equity markets lost value. We saw our fixed maturity and equity portfolios decline in value resulting in unrealized investment losses in our March 31, 2020 financial statements. However, the financial markets rebounded during the remaining quarters of 2020 and we recognized after-tax unrealized gains of $338.2 million in our financial statements for these three quarters. Nevertheless, the lack of business activity may lead to an increase in bankruptcies and corresponding credit losses.

There will also be a negative impact on future industry underwriting results. With the closing of non-essential businesses, there has been a significant decline in business activity. To the extent that premiums are based on business activity, there will be a decline in premium volume. Incurred losses from the pandemic will be impacted by the duration of the event and will vary by line of business and geographical location. For the full year 2020, our underwriting results include $154.8 million of estimated losses related to the pandemic.

Prior to the pandemic, there was a growing industry consensus that there was some firming of (re)insurance rates for the areas impacted by the recent catastrophes. The increased frequency of catastrophe losses in 2020 appears to be further pressuring the increase of rates. Rates also appear to be firming in some of the casualty lines of business, particularly in the casualty lines that had seen significant losses such as excess casualty and directors’ and officers’ liability. Other casualty lines are experiencing modest rate increase, while some lines such as workers’ compensation were experiencing softer market conditions. It is too early to tell what will be the impact on pricing conditions but it is likely to change depending on the line of business and geography.

While we are unable to predict the full impact the pandemic will have on the insurance industry as it continues to have a negative impact on the global economy, we are well positioned to continue to service our clients. ~~Our capital position remains a source of strength, with high quality invested assets, significant liquidity and a low operating expense ratio.~~ ~~Our diversified global platform with its broad mix of products, distribution and geography is resilient.~~

Financial Summary.

We monitor and evaluate our overall performance based upon financial results. The following table displays a summary of the consolidated net income (loss), ratios and stockholder’s equity for the periods indicated:

	Years Ended December 31,						Percentage Increase/(Decrease)
	Years Ended December 31,																								Years Ended December 31,																	Percentage Increase/(Decrease)
(Dollars in millions)	2020		2019		2018		2020/2019		2019/2018	(Dollars in millions)		2023						2022								2021						2023/2022								2022/2021
Gross written premiums	$	7,957.0	$	7,053.1	$	6,573.7		12.8%	7.3%	Gross written premiums		$	11,117		$			$	9,677			$				$	9,331		14.9				14.9		%						3.7		%
Net written premiums		6,638.7		5,774.9		5,031.9		15.0%	14.8%	Net written premiums		9,212			8,032				8,032				7,719					7,719		14.7					14.7	%							4.0	%

REVENUES:
REVENUES:
REVENUES:
Premiums earned
Premiums earned
Premiums earned	$	6,406.6	$	5,489.0	$	4,839.1		16.7%	13.4%	$	8,536			$		$	7,876			$				$	7,179			8.4			8.4		%						9.7		%
Net investment income		375.9		356.2		314.4		5.5%	13.3%	Net investment income		993			638				638				745					745		55.5					55.5	%							(14.3)	%
Net realized capital gains (losses)		49.8		419.4		(185.4)		-88.1%	NM
Net gains (losses) on investments										Net gains (losses) on investments		(180)						(982)								501						(81.6)		%						NM
Other income (expense)		(14.6)		(1.6)		(9.6)		NM	-83.4%	Other income (expense)		(11)			(6)				(6)				23					23		NM											NM
Total revenues		6,817.7		6,263.0		4,958.5		8.9%	26.3%	Total revenues		9,337			7,526				7,526				8,448					8,448		24.1					24.1	%							(10.9)	%

CLAIMS AND EXPENSES:
CLAIMS AND EXPENSES:
CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses
Incurred losses and loss adjustment expenses
Incurred losses and loss adjustment expenses		4,608.1		3,829.1		4,811.0		20.3%	-20.4%	5,578				5,823			5,823				5,387					5,387			(4.2)				(4.2)		%						8.1		%
Commission, brokerage, taxes and fees		1,373.4		1,270.1		1,141.7		8.1%	11.2%	Commission, brokerage, taxes and fees		1,851			1,632				1,632				1,513					1,513		13.4					13.4	%							7.9	%
Other underwriting expenses		401.0		350.9		293.3		14.3%	19.6%	Other underwriting expenses		574			501				501				454					454		14.5					14.5	%							10.5	%
Corporate expense		16.0		13.1		11.0		22.4%	18.4%	Corporate expense		18			26				26				33					33		(31.1)					(31.1)	%							(22.9)	%
Interest, fee and bond issue cost amortization expense		35.7		34.9		30.6		2.1%	14.1%	Interest, fee and bond issue cost amortization expense		134			101				101				70					70		33.2					33.2	%							44.3	%
Total claims and expenses		6,434.2		5,498.1		6,287.7		17.0%	-12.6%	Total claims and expenses		8,156			8,083				8,083				7,457					7,457		0.9					0.9	%							8.4	%

INCOME (LOSS) BEFORE TAXES		383.5		765.0		(1,329.2)		-49.9%	-157.5%
INCOME (LOSS) BEFORE TAXES
INCOME (LOSS) BEFORE TAXES												1,181						(557)								991											NM
Income tax expense (benefit)		31.7		135.2		(367.0)		-76.6%	-136.8%	Income tax expense (benefit)		210			(112)				(112)				192					192		NM											NM
NET INCOME (LOSS)	$	351.9	$	629.7	$	(962.2)		-44.1%	-165.4%	NET INCOME (LOSS)		$	972		$			$	(445)			$				$	800		NM										NM

RATIOS:
RATIOS:
RATIOS:								Point Change																														Point Change
Loss ratio		71.9%		69.8%		99.4%		2.1	(29.6)
Commission and brokerage ratio		21.4%		23.1%		23.6%		(1.7)	(0.5)
Other underwriting expense ratio		6.3%		6.4%		6.1%		(0.1)	0.3
Combined ratio		99.6%		99.3%		129.1%		0.3	(29.8)


	At December 31,						Percentage Increase/ (Decrease)
(Dollars in millions)	2020		2019		2018		2020/2019		2019/2018
Balance sheet data:
Total investments and cash	$	15,910.2	$	11,956.3	$	10,707.4		33.1%	11.7%
Total assets		23,717.1		19,706.2		18,680.3		20.4%	5.5%
Loss and loss adjustment expense reserves		11,655.0		10,209.5		10,167.0		14.2%	0.4%
Total debt		1,910.4		633.8		933.6		201.4%	-32.1%
Total liabilities		17,302.8		13,848.8		13,643.5		24.9%	1.5%
Stockholder's equity		6,414.3		5,857.4		5,036.8		9.5%	16.3%

(Some amounts may not reconcile due to rounding)										(NM, not meaningful)


	At December 31,						Percentage Increase/ (Decrease)
(Dollars in millions)	2023		2022		2021		2023/2022		2022/2021
Balance sheet data:
Total investments and cash	$	23,439	$	19,195	$	19,719	22.1	%	(2.7)	%
Total assets	31,638		27,957		27,695		13.2	%	0.9	%
Loss and loss adjustment expense reserves	15,796		14,977		13,121		5.5	%	14.1	%
Total debt	3,385		3,084		3,089		9.8	%	(0.2)	%
Total liabilities	24,451		22,303		20,657		9.6	%	8.0	%
Stockholder's equity	7,187		5,654		7,038		27.1	%	(19.7)	%

(Some amounts may not reconcile due to rounding)

(NM - not meaningful)

Revenues.

~~Premiums.~~

Premiums. Gross written premiums increased by ~~12.8%~~14.9% to ~~$7,957.0 million~~$11.1 billion in ~~2020,~~2023, compared to ~~$7,053.1 million~~$9.7 billion in ~~2019,~~2022, reflecting a ~~$665.3 million,~~$1.3 billion, or ~~14.5%,~~22.1% increase in our reinsurance business and a ~~$238.6~~$138 million, or ~~9.7%,~~3.6% increase in our insurance business. The ~~rise~~increase in reinsurance premiums ~~was mainly due to increases in~~reflects growth across all lines of business, particularly property pro rata, ~~business, casualty excess of loss writings~~ and property ~~catastrophe~~ excess of loss business. The ~~rise~~increase in insurance premiums ~~was mainly due to increases in~~reflects growth across

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multiple lines of business, particularly specialty casualty business, ~~property~~property/short tail business and ~~professional liability business.~~other specialty business, driven by positive rate and exposure increases, new business and strong renewal retention. Net written premiums increased by ~~15.0%~~14.7% to ~~$6,638.7 million~~$9.2 billion in ~~2020,~~2023, compared to ~~$5,774.9 million~~$8.0 billion in ~~2019. The difference between the change in gross written premiums compared to the change in net written premiums is primarily due to the impact of changes in affiliated reinsurance contracts.~~2022. Premiums earned increased by ~~16.7%~~8.4% to ~~$6,406.6 million~~$8.5 billion in ~~2020,~~2023, compared to ~~$5,489.0 million~~$7.9 billion in ~~2019.~~2022, which is consistent with the percentage changes in gross written premiums. The change in premiums earned relative to net written premiums is primarily the result of timing; premiums are earned ratably over the coverage period whereas written premiums are generally recorded at the initiation of the coverage period.

Gross written premiums increased by 7.3% to $7,053.1 million in 2019, compared to $6,573.7 million in 2018, reflecting a $445.7 million, or 22.2%, increase in our insurance business and a $33.7 million, or 0.7%, increase in our reinsurance business. The rise in insurance premiums was primarily due to increases in many lines of business, including casualty, energy and accident and health. The increase in reinsurance premiums was mainly due to the increase in treaty casualty writings, partially offset by a decline in treaty property business. Net written premiums increased by 14.8% to $5,774.9 million in 2019, compared to $5,031.9 million in 2018. The difference between the change in gross written premiums compared to the change in net written premiums is primarily due to the impact of changes in affiliated reinsurance contracts. Premiums ceded to Bermuda Re in 2019 were $100.1 million compared with $572.6 million in 2018. Premiums earned increased by 13.4% to $5,489.0 million in 2019, compared to $4,839.1 million in 2018. The change in premiums earned relative to net written premiums is the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.

~~Net Investment Income.~~Net investment income increased 5.5% to $375.9 million in 2020 compared with net investment income of $356.2 million in 2019. Net pre-tax investment income as a percentage of average invested assets was 2.8% in 2020 and 3.2% in 2019. The increase in income was primarily the result of higher income from our growing fixed maturity portfolio, offsetting the impact from the lower interest rate environment, and from our limited partnerships.

Net investment income increased 13.3% to $356.2 million in 2019 compared with net investment income of $314.4 million in 2018. Net pre-tax investment income as a percentage of average invested assets was 3.2% in both 2019 and 2018. The increase in income was primarily the result of higher income from our growing fixed maturity portfolio, partially offset by lower income from our limited partnerships and lower dividend income from our equity portfolio.

~~Net Realized Capital Gains (Losses).~~ ~~Net realized capital gains were $49.8 million in 2020 and $419.4 million in 2019 and net realized capital losses were $185.4 million in 2018.~~ ~~The net realized capital gains of $49.8 million in 2020, were comprised of $91.9 million of gains from fair value re-measurements,~~ ~~partially offset by~~ $~~40.6~~ ~~million of losses from sales of investments and $1.6 million increase in allowances for credit loss.~~ ~~The net realized capital gains of $419.4 million in 2019, were comprised of $420.8 million of gains from fair value re-measurements, $18.2~~ ~~million of gains from sales of investments,~~ ~~partially offset by~~ ~~$19.6 million of other-than-temporary impairments.~~ ~~The net realized capital losses of $185.4 million in 2018 were comprised of $148.0 million of losses from fair value re-measurements, $31.2~~ ~~million of losses from sales of investments and $6.2 million of other-than-temporary impairments.~~

Other Income (Expense). We recorded other expense of ~~$14.6 million $1.6~~$11 million and ~~$9.6~~$6 million in ~~2020, 2019~~2023 and ~~2018,~~2022, respectively. The ~~changes were~~change was primarily the result of fluctuations in foreign currency exchange rates.

Claims and Expenses.

Incurred Losses and Loss Adjustment Expenses. The following table presents our incurred losses and loss adjustment expenses (“LAE”) for the periods ~~indicated.~~

indicated:

	Total
	Current		Ratio %/		Prior		Ratio %/		Total		Ratio %/
	Years Ended December 31,																															Years Ended December 31,
(Dollars in millions)	Year		Pt Change		Years		Pt Change		Incurred		Pt Change		(Dollars in millions)		Current Year					Ratio %/ Pt Change				Prior Years					Ratio %/ Pt Change				Total Incurred						Ratio %/ Pt Change
2020
2023
Attritional (a)
Attritional (a)
Attritional (a)	$	3,997.2	62.4%		$	213.5	3.3%		$	4,210.8	65.7%		$	5,254			61.5		61.5		%		$	1			—		—	%			$	5,255			61.6			61.6	%
Catastrophes		410.6	6.4%			(13.2)	(0.2)%			397.4	6.2%		Catastrophes		346			4.0			4.0	%			(22)			(0.3)		(0.3)	%				323			3.8			3.8	%
Total	$	4,407.8	68.8%		$	200.3	3.1%		$	4,608.1	71.9%		Total		$	5,599		65.6			65.6	%			$	(21)		(0.3)		(0.3)	%				$	5,578		65.3			65.3	%

2019
2022
2022
2022
Attritional (a)
Attritional (a)
Attritional (a)	$	3,271.4	59.6%		$	(16.0)	-0.3%		$	3,255.5	59.3%		$	4,828			61.3		61.3		%		$	11			0.1		0.1	%			$	4,839			61.4			61.4	%
Catastrophes		513.3	9.4%			60.3	1.1%			573.7	10.5%		Catastrophes		987			12.5			12.5	%			(4)			0.0		0.0	%				983			12.5			12.5	%
Total	$	3,784.8	69.0%		$	44.4	0.8%		$	3,829.1	69.8%		Total		$	5,815		73.8			73.8	%			$	7		0.1		0.1	%				$	5,823		73.9			73.9	%

2018
2021
2021
2021
Attritional (a)
Attritional (a)
Attritional (a)	$	3,092.6	63.9%		$	5.8	0.1%		$	3,098.4	64.0%		$	4,439			61.8		61.8		%		$	8			0.1		0.1	%			$	4,447			61.9			61.9	%
Catastrophes		1,159.6	24.0%			553.0	11.4%			1,712.6	35.4%		Catastrophes		943			13.1			13.1	%			(3)			—		—	%				940			13.1			13.1	%
Total	$	4,252.2	87.9%		$	558.8	11.5%		$	4,811.0	99.4%		Total		$	5,382		74.9			74.9	%			$	5		0.1		0.1	%				$	5,387		75.0			75.0	%

Variance 2020/2019
Variance 2023/2022
Variance 2023/2022
Variance 2023/2022
Attritional (a)
Attritional (a)
Attritional (a)	$	725.8	2.8	pts	$	229.5	3.6	pts	$	955.3	6.4	pts	$	426			0.3		0.3		pts		$	(11)			(0.1)		(0.1)	pts			$	416			0.1			0.1	pts
Catastrophes		(102.7)	(3.0)	pts		(73.5)	(1.3)	pts		(176.3)	(4.3)	pts	Catastrophes		(642)			(8.5)			(8.5)	pts			(18)			(0.2)		(0.2)	pts				(660)			(8.7)			(8.7)	pts
Total	$	623.0	(0.2)	pts	$	155.9	2.3	pts	$	779.0	2.1	pts	Total		$	(215)		(8.2)			(8.2)	pts			$	(29)		(0.3)		(0.3)	pts				$	(244)		(8.6)			(8.6)	pts

Variance 2019/2018
Variance 2022/2021
Variance 2022/2021
Variance 2022/2021
Attritional (a)
Attritional (a)
Attritional (a)	$	178.8	(4.3)	pts	$	(21.8)	(0.4)	pts	$	157.1	(4.7)	pts	$	389			(0.5)		(0.5)		pts		$	3			—		—	pts			$	392			(0.5)			(0.5)	pts
Catastrophes		(646.3)	(14.6)	pts		(492.7)	(10.3)	pts		(1,138.9)	(24.9)	pts	Catastrophes		44			(0.6)			(0.6)	pts			(1)			—		—	pts				43			(0.6)			(0.6)	pts
Total	$	(467.4)	(18.9)	pts	$	(514.4)	(10.7)	pts	$	(981.9)	(29.6)	pts	Total		$	433		(1.1)			(1.1)	pts			$	2		—		—	pts				$	436		(1.1)			(1.1)	pts

(a) Attritional losses exclude catastrophe losses.													(Some amounts may not reconcile due to rounding.)

(a)Attritional losses exclude catastrophe losses.

(Some amounts may not reconcile due to rounding.)

Incurred losses and LAE ~~increased~~decreased by ~~20.3%~~4.2% to ~~$4,608.1 million~~$5.6 billion in ~~2020~~2023 compared to ~~$3,829.1 million~~$5.8 billion in ~~2019,~~2022, primarily due to a decrease of $642 million in current year catastrophe losses, partially offset by an increase of ~~$725.8~~$426 million in current year attritional losses. The increase in current year attritional losses was mainly due to the impact of the increase in premiums earned. Net favorable development on prior year attritional losses was $11 million, where Reinsurance had favorable development of $333 million and Insurance had unfavorable development of $322 million. The current year catastrophe losses of $346 million in 2023 related primarily to ~~$154.8~~the 2023 Turkey earthquakes ($92 million), Hurricane Otis ($84 million), the 2023 New Zealand storms ($41 million), the 2023 Morocco earthquake ($40 million), the 2023 Hawaii wildfire ($26 million), and Hurricane Idalia ($20 million), with the remaining losses resulting from various storm events. The current year catastrophe losses of $987 million in 2022 related primarily to Hurricane Ian ($768 million), the 2022 Australia floods

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($75 million), the 2022 South Africa flood ($43 million), Hurricane Fiona ($27 million), and the 2022 Canada derecho ($20 million), with the remaining losses resulting from various storm events.

The Company had up to $350 million of ~~losses from~~catastrophe bond protection (“CAT Bond”) that attaches at a $48.1 billion Property Claims Services (“PCS”) Industry loss threshold. This recovery would be recognized on a pro-rata basis up to a $63.8 billion PCS Industry loss level. As a result of Hurricane Ian, PCS’s current industry estimate of $48.2 billion issued in February 2024 exceeds the ~~COVID-19 pandemic~~attachment point. The potential recovery under the CAT Bond is not expected to be material. As a result, no portion of the potential CAT bond recovery has been included in the Company’s current financial results.

The stop loss agreements between Everest Re and Bermuda Re that were effective for 2018 and 2019 were both commuted during the third quarter of 2023. The commutations of the agreements resulted in the recognition of an aggregate loss of $37 million for Everest Re. The impact of the commutations are embedded within the Reinsurance Segment’s net favorable development on prior year attritional losses.

Commission, Brokerage, Taxes and Fees. Commission, brokerage, taxes and fees increased to $1.9 billion in 2023 compared to $1.6 billion in 2022. The increase was primarily due to the impact of the increase in premiums earned and $229.5 million increase in development on prior years attritional losses in 2020 compared to 2019. The increase in incurred losses was partially offset by a decrease of $102.7 million in current year catastrophe losses and a $73.5 million improvement in development on prior years catastrophe losses. The current year catastrophe losses of $410.6 million in 2020 related to Hurricane Laura ($115.0 million), the Northern California wildfires ($44.1 million), Hurricane Zeta ($36.5 million), Hurricane Sally ($31.4 million), the California Glass wildfire ($29.5 million), the Nashville tornadoes ($22.8 million), the Derecho storms ($20.5 million), Hurricane Isaias ($20.0 million), Hurricane Delta ($18.5 million), the Calgary storms in Canada ($17.4 million), Oregon wildfires ($17.0 million), the U.S. Civil Unrest ($14.5 million) the Queensland hailstorm ($10.0 million), the Australia East Coast storm ($6.8 million) and the 2020 Australia fires ($6.5 million). The current year catastrophe losses of $513.3 million in 2019 related to Typhoon Hagibis ($184.0 million), Hurricane Dorian ($161.0 million), Typhoon Faxai ($119.3 million), the Dallas tornadoes ($25.0 million), and the Townsville Monsoon in Australia ($24.0 million).

Incurred losses and LAE decreased by 20.4% to $3,829.1 million in 2019 compared to $4,811.0 million in 2018, primarily due to a decrease in current year catastrophe losses of $646.3 million and a decrease in unfavorable development on prior year catastrophe losses of $492.7 million mainly related to the development on Hurricanes Harvey, Irma and Maria and the California wildfires in 2018. The decrease in losses was partially offset by an increase of $178.8 million on current year attritional losses mainly due to the increase in premiums earned. The current year catastrophe losses of $513.3 million in 2019 are outlined above. The

current year catastrophe losses of $1,159.6 million in 2018 related to Hurricane Michael ($443.5 million), Camp wildfire ($297.0 million), Woolsey wildfire (151.0 million), Typhoon Jebi ($66.6 million), Hurricane Florence ($60.8 million), Cyclone Mekunu ($43.7 million), Typhoon Trami ($25.0 million), other 2018 California wildfires ($24.6 million), Australian hailstorm ($24.0 million), Japan Floods ($15.0 million) and the U.S. winter storms ($8.4 million).

~~Commission, Brokerage, Taxes and Fees.~~ ~~Commission, brokerage, taxes and fees increased to $1,373.4 million~~ in ~~2020 compared to~~ $~~1,270.1 million~~ in ~~2019. The increase was mainly due to increases in premiums earned and~~ changes in the mix of business.

~~Commission, brokerage, taxes~~

Other Underwriting Expenses. Other underwriting expenses were $574 million and ~~fees~~$501 million in~~creased to $1,270.1 million~~ in ~~2019 compared to~~ $~~1,141.7~~ ~~million~~ in ~~2018.~~ 2023 and 2022, respectively. The increase in other underwriting expenses was mainly due to ~~changes in affiliated reinsurance agreements, increases in premiums earned and changes in~~ the ~~mix~~continued build out of ~~business toward additional pro rata business.~~

~~Other Underwriting Expenses.~~ Other underwriting expenses were $401.0 million, $350.9 million and $293.3 million in 2020, 2019 and 2018, respectively. The increases were mainly due to the impact of increases in premium earned, costs incurred to support theour insurance operations, including an expansion of the insurance ~~business and changes in affiliated reinsurance agreements.~~

platform.

Corporate Expenses.Corporate expenses, which are general operating expenses that are not allocated to segments, were ~~$16.0 million, $13.1~~$18 million and ~~$11.0~~$26 million for the years ended December 31, ~~2020, 2019~~2023 and ~~2018,~~2022, respectively. The ~~variances were~~decrease from 2023 to 2022 was mainly due to ~~changes in variable compensation.~~

a greater percentage of general expenses being allocated to operating segments.

Interest, Fees and Bond Issue Cost Amortization Expense. Interest, fees and other bond amortization expense were ~~$35.7 million, $34.9~~$134 million and ~~$30.6~~$101 million in ~~2020, 2019~~2023 and ~~2018,~~2022, respectively. The ~~changes~~increase in interest expense ~~were~~was primarily due to ~~the~~ movements in the floating interest rate related to the ~~long term~~long-term subordinated notes, which is reset quarterly per the note agreement. The floating rate was ~~2.6%~~8.03% as of December 31, ~~2020. The increase from 2019~~2023 compared to ~~2020 was also related to the interest expense incurred on the $1,000.0 million senior note issuance in October 2020.~~

6.99% as of December 31, 2022.

Income Tax Expense (Benefit). The Company had an income tax expense of ~~$31.7~~$210 million ~~in 2020, an income tax expense of $135.2 million in 2019,~~ and an income tax benefit of ~~$367.0~~$112 million in ~~2018. The TCJA impact was an income tax benefit of $28.4 million in 2018.~~2023 and 2022, respectively. Variations in income taxes generally result from changes in the relative levels of pre-tax income, including the impact of catastrophe losses and net ~~capital~~ gains (losses) on investments as well as changes in tax exempt investment income and creditable foreign taxes. The change infrom income tax benefit to income tax expense resulted primarily from improvement in pre-tax income, decreased capital losses and increased fair value of investments.

On August 16, 2022, the Inflation Reduction Act of 2022 (“IRA”) was ~~primarily due~~enacted. We have evaluated the tax provisions of the IRA, the most significant of which are the corporate alternative minimum tax and the share repurchase excise tax, and do not expect the legislation to ~~the increase in incurred losses, including from COVID 19 reserves and~~have a ~~reserve charge from 2019 to 2020.~~

~~The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, enacted~~material impact on March 27, 2020, provided that U.S. companies could carryback for five years net operating losses incurred in 2018, 2019 and/or 2020. This beneficial tax provision in the CARES Act enabled the Company to carryback its significant 2018 net operating losses to prior tax years with higher effective tax ratesour results of 35% versus 21% in 2018 and later years. As a result, the Company was able to record a net income tax benefit from the five-year carryback of $32.5 million and obtain federal income tax cash refunds of $182.5 million including interest in 2020.

operations.

Net Income (Loss).

Our net income was ~~$351.9~~$972 million and ~~$629.7 million in 2020 and 2019, respectively and our~~ net loss was ~~$962.2~~$445 million in ~~2018.~~2023 and 2022, respectively. The ~~changes were~~change was primarily driven by ~~the financial component fluctuations explained above.~~

underwriting income of $533 million and net investment income of $993 million, partially offset by realized losses on investments of $180 million.

Ratios.

~~Ratios.~~

Our combined ratio ~~increased~~decreased by ~~0.3~~7.2 points to ~~99.6%~~ 93.8% in ~~2020~~2023 compared to ~~99.3%~~ 101.0% in ~~2019.~~2022. The loss ratio component ~~increased~~decreased by ~~2.1~~8.6 points in ~~2020~~2023 over the same period last year mainly due to ~~$229.5~~a decline of $642 million ~~increase~~ in ~~development on prior years attritional losses and $154.8 million of losses related to the Covid-19 pandemic in 2020.~~catastrophe losses. The commission and brokerage ratio ~~component decreased~~components increased to ~~21.4%~~ 21.7% in ~~2020~~2023 compared to ~~23.1%~~ 20.7% in ~~2019,~~2022, reflecting changes in affiliated reinsurance agreements and changes in the mix of business. The other underwriting expense ratio ~~decreased~~ slightly increased to ~~6.3%~~ 6.7% in ~~2020~~2023 from 6.4% in ~~2019.~~

~~Our combined ratio decreased by 29.8 points to 99.3%~~ in ~~2019 compared to 129.1%~~ in ~~2018.~~2022. The ~~loss ratio component decreased by 29.6 points in 2019 over the same period last year~~increase was mainly due to a lower loss ratio on current year catastrophe losses and less unfavorable development on prior years catastrophe losses in 2019 compared to 2018. The commission and brokerage ratio component decreased slightly to 23.1% in ~~2019 compared to 23.6% in 2018, reflecting changes in affiliated reinsurance agreements and changes in the mix of business. The other underwriting expense ratio increased slightly to 6.4%~~ in ~~2019 from 6.1% in 2018.~~

higher insurance operations costs.

Stockholder's Equity.

Stockholder’s equity increased by ~~$556.9 million~~$1.5 billion to ~~$6,414.3 million~~ $7.2 billion at December 31, ~~2020~~ 2023 from ~~$5,857.4 million~~$5.7 billion at December 31, ~~2019,~~2022, principally as a result of ~~$351.9~~$972 million of net income, ~~$188.5~~$527 million of net unrealized appreciation on investments, net

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of tax, $14.5 million of net foreign currency translation adjustments, $0.9 million of cumulative adjustment from the adoption of ASU 2016-13, $0.7 million of net benefit plan obligation adjustments and $0.4 million of capital contributions

~~Stockholder’s equity increased by $820.6 million to $5,857.4 million~~ ~~at December 31, 2019~~ ~~from $5,036.8 million at December 31, 2018, principally as a result of $629.7 million of net income, $180.6 million of net unrealized appreciation on investments, net of tax, $17.2~~$17 million of net foreign currency translation adjustments and ~~$0.4 million of capital contributions, partially offset by $7.1~~$17 million of net benefit plan obligation adjustments.

Consolidated Investment Results

Net Investment Income.

Net investment income increased by ~~5.5%~~55.5% to ~~$375.9~~$993 million in ~~2020~~2023 compared to ~~$356.2~~$638 million in ~~2019~~.2022. The increase ~~in 2020~~ was primarily ~~due to higher~~the result of an increase of $312 million in income from ~~our growing~~ fixed maturity ~~portfolio, offsetting the impact~~investments and an increase of ~~the lower interest rate environment,~~$59 million in short-term investments and ~~from our limited partnerships.~~

~~Net investment income increased by 13.3% to $356.2 million~~ ~~in 2019~~ ~~compared to $314.4 million~~ ~~in 2018. The increase in 2019 was primarily due to higher income from our growing fixed maturity portfolio,~~cash, partially offset by ~~lower~~a decrease of $35 million in limited partnership income. The limited partnership income ~~from our limited partnerships~~primarily reflects changes in their reported net asset values. As such, until these asset values are monetized and ~~lower dividend~~the resultant income ~~from our equity portfolio.~~

is distributed, they are subject to future increases or decreases in the asset value, and the results may be volatile.

The following table shows the components of net investment income for the periods indicated:

	Years Ended December 31,
	Years Ended December 31,									Years Ended December 31,
(Dollars in millions)	2020		2019		2018		(Dollars in millions)	2023	2022		2021
Fixed maturities	$	305.4	$	273.1	$	201.1
Equity securities		11.5		10.8		14.9
Short-term investments and cash		3.0		10.2		7.7
Other invested assets
Limited partnerships
Limited partnerships
Limited partnerships		48.9		43.3		61.6
Dividends from preferred shares of affiliate		31.0		31.0		31.0
Other		1.7		14.1		17.8
Gross investment income before adjustments		401.5		382.6		334.2
Funds held interest income (expense)		5.7		6.5		5.2
Interest income from Parent		5.2		0.2		4.1
Gross investment income		412.3		389.3		343.5
Investment expenses		(36.4)		(33.1)		(29.1)
Net investment income	$	375.9	$	356.2	$	314.4

(Some amounts may not reconcile due to rounding.)

(Some amounts may not reconcile due to rounding.)

The following table shows a comparison of various investment yields for the periods indicated:

	2020		2019		2018
Imbedded pre-tax yield of cash and invested assets at December 31	3.1	%	3.5	%	3.5	%
Imbedded after-tax yield of cash and invested assets at December 31	2.5	%	2.8	%	2.8	%

	2023									2023			2022			2021
Annualized pre-tax yield on average cash and invested assets	2.8	%	3.2	%	3.2	%	Annualized pre-tax yield on average cash and invested assets	4.5	%		3.3	%		4.4	%
Annualized after-tax yield on average cash and invested assets	2.3	%	2.6	%	2.6	%	Annualized after-tax yield on average cash and invested assets	3.6	%		2.6	%		3.5	%

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Net ~~Realized Capital~~ Gains (Losses).

on Investments.

The following table presents the composition of our net ~~realized capital~~ gains (losses) on investments for the periods indicated:

Years Ended December 31,

2020/2019

2019/2018
(Dollars in millions)
2020

2019

2018

Variance

Variance
Gains (losses) from sales:

Fixed maturity securities, market value

Gains
$
24.2

$
24.7

$
15.3

$
(0.5)

$
9.4
Losses

(56.8)

(17.1)

(14.4)

(39.7)

(2.7)
Total

(32.6)

7.6

0.9

(40.2)

6.7

Fixed maturity securities, fair value

Gains

—

0.4

—

(0.4)

0.4
Losses

(2.9)

—

(1.8)

(2.9)

1.8
Total

(2.9)

0.4

(1.8)

(3.3)

2.2

Equity securities, fair value

Gains

37.4

14.2

25.2

23.2

(11.0)
Losses

(45.3)

(10.1)

(57.3)

(35.2)

47.2
Total

(7.9)

4.1

(32.1)

(12.0)

36.2

Other invested assets

Gains

7.7

6.7

1.8

1.0

4.9
Losses

(6.0)

(0.7)

—

(5.3)

(0.7)
Total

1.7

6.0

1.8

(4.3)

4.2

Short Term Investments:

Gains

1.1

0.2

—

0.9

0.2
Losses

—

—

—

—

—
Total

1.1

0.2

—

0.9

0.2

Total net realized gains (losses) from sales

Gains

70.4

46.3

42.3

24.1

4.0
Losses

(111.0)

(27.9)

(73.5)

(83.1)

45.6
Total

(40.6)

18.4

(31.2)

(59.0)

49.6

Allowances for credit losses:

(1.6)

—

—

(1.6)

—

Other than temporary impairments:

—

(19.6)

(6.2)

19.6

(13.4)

Gains (losses) from fair value adjustments:

Fixed maturities, fair value

1.9

1.8

1.5

0.1

0.3
Equity securities, fair value

276.1

153.7

(59.4)

122.4

213.1
Other invested assets, fair value

(186.1)

265.2

(90.1)

(451.3)

355.3
Total

91.9

420.7

(148.0)

(328.8)

568.7

Total net realized gains (losses)
$
49.8

$
419.4

$
(185.4)

$
(369.6)

$
604.8
(Some amounts may not reconcile due to rounding.)


	Years Ended December 31,						2023/2022		2022/2021
(Dollars in millions)	2023		2022		2021		Variance		Variance
Realized gains (losses) from dispositions:
Fixed maturity securities - available for sale
Gains	$	12	$	9	$	33	$	3	$	(24)
Losses	(204)		(88)		(24)		(116)		(63)
Total	(192)		(79)		8		(114)		(87)

Equity securities
Gains	8		165		39		(156)		126
Losses	—		(48)		(15)		48		(33)
Total	8		117		24		(108)		93

Other invested assets
Gains	—		18		10		(18)		8
Losses	—		(5)		(4)		5		(1)
Total	—		13		6		(13)		7

Short-term Investments:
Gains	1		—		—		1		—
Losses	—		—		—		—		—
Total	—		—		—		1		—

Total net realized gains (losses) from dispositions
Gains	20		192		82		(172)		110
Losses	(204)		(141)		(43)		(64)		(98)
Total	(184)		51		39		(235)		12

Allowances for credit losses:	(1)		(27)		(26)		26		(1)

Gains (losses) from fair value adjustments:
Fixed maturities	—		—		—		—		—
Equity securities	(4)		(447)		254		443		(701)
Other invested assets	9		(558)		234		567		(793)
Total	5		(1,006)		488		1,010		(1,494)

Total net gains (losses) on investments	$	(180)	$	(982)	$	501	$	801	$	(1,483)

(Some amounts may not reconcile due to rounding.)

Net ~~realized capital~~ gains ~~were $49.8~~(losses) on investments during 2023 primarily relate to $184 million ~~in 2020 and $419.4 million in 2019 and~~of net realized ~~capital losses were $185.4 million in 2018.~~ ~~The net realized capital gains of $49.8 million in 2020, were comprised of $91.9 million of gains from fair value re-measurements,~~ ~~partially offset by~~ $~~40.6~~ ~~million of~~ losses from ~~sales~~disposition of investments and ~~$1.6 million increase in allowances for credit loss.~~ ~~The~~ net ~~realized capital gains of $419.4 million in 2019, were comprised of $420.8 million of gains from fair value re-measurements, $18.2~~ ~~million of gains from sales of investments,~~ ~~partially offset by~~ ~~$19.6 million of other-than-temporary impairments.~~ ~~The net realized capital losses of $185.4 million in 2018 were comprised of $148.0 million of~~ losses from fair value ~~re-measurements, $31.2~~ adjustments on equity securities of $4 million as a result of ~~losses~~equity market declines in 2023, partially offset by net gains of $9 million from ~~sales of investments and $6.2 million of other-than-temporary impairments.~~

fair value adjustments on other invested assets.

Segment Results.

The Company operates through two operating segments. The Reinsurance operation writes worldwide property and casualty reinsurance and specialty lines of business, on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies. Business is ~~primarily~~ written in the ~~U.S.~~United States as well as through branches in Canada and Singapore. The Insurance operation writes property and casualty insurance directly and through brokers, including for surplus lines, ~~brokers~~ and general agents ~~mainly~~ within the ~~U.S.~~

~~These~~United States. The two segments are managed independently, but

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conform with corporate guidelines with respect to pricing, risk management, control of aggregate catastrophe exposures, capital, investments and support operations.

Our two operating segments each have executive leadership who are responsible for the overall performance of their respective segments and who are directly accountable to our chief operating decision maker (“CODM”), the Chief Executive Officer of Everest Group, Ltd., who is ultimately responsible for reviewing the business to assess performance, make operating decisions and allocate resources. We report the results of our operations consistent with the manner in which our CODM reviews the business.

During the fourth quarter of 2023, the Company revised the classification and presentation of certain products related to its accident and health business within the segment groupings. These products have been realigned from within the Reinsurance segment to the Insurance segment to appropriately reflect how the business segments are managed. These changes have been reflected retrospectively.

The Company does not review and evaluate the financial results of its operating segments based upon balance sheet data. Management generally monitors and evaluates the financial performance of ~~these~~the two operating segments based upon their underwriting results.

Underwriting results include earned premium less losses and LAE incurred, commission and brokerage expenses and other underwriting expenses. ~~We measure our~~The Company measures its underwriting results using ratios, in particular loss, commission and brokerage and other underwriting expense ratios, which respectively, divide incurred losses, commissions and brokerage and other underwriting expenses by premiums earned.

Management has determined that these measures are appropriate and align with how the business is managed. We continue to evaluate our segments as our business evolves and may further refine our segments and financial performance measures.

Our loss and LAE reserves are management’s best estimate of our ultimate liability for unpaid claims. We re-evaluate our estimates on an ongoing basis, including all prior period reserves, taking into consideration all available information and, in particular, recently reported loss claim experience and trends related to prior periods. Such re-evaluations are recorded in incurred losses in the period in which the re-evaluation is made.

Management’s best estimate is developed through collaboration with actuarial, underwriting, claims, legal and finance departments and culminates with the input of reserve committees. Each segment reserve committee includes the participation of the relevant parties from actuarial, finance, claims and segment senior management and has the responsibility for recommending and approving management’s best estimate. Reserves are further reviewed by Everest’s Chief Reserving Actuary and senior management. The objective of such process is to determine a single best estimate viewed by management to be the best estimate of its ultimate loss liability.

The following discusses the underwriting results for each of our segments for the periods ~~indicated:~~

indicated.

Reinsurance.

~~Reinsurance.~~

The following table presents the underwriting results and ratios for the Reinsurance segment for the periods ~~indicated.~~

indicated:

	Years Ended December 31,						2020/2019			2019/2018
	Years Ended December 31,																										Years Ended December 31,																	2023/2022												2022/2021
(Dollars in millions)	2020		2019		2018		Variance		% Change	Variance		% Change	(Dollars in millions)		2023						2022							2021							Variance							% Change							Variance								% Change
Gross written premiums	$	5,265.7	$	4,600.4	$	4,569.5	$	665.3	14.5%	$	30.9	0.7%	Gross written premiums		$	7,181		$			$	5,879		$				$	5,979		$				$	1,302			22.1				22.1		%					$	(99)			(1.7)				(1.7)		%
Net written premiums		4,632.3		3,923.8		3,519.7		708.5	18.1%		404.1	11.5%	Net written premiums		6,205			5,204				5,204			5,217					5,217		1,001						1,001		19.2						19.2	%						(13)			(0.2)					(0.2)	%

Premiums earned
Premiums earned
Premiums earned	$	4,484.7	$	3,796.2	$	3,386.4	$	688.5	18.1%	$	409.8	12.1%	$	5,637			$		$	5,147			$			$	4,899			$			$	490			9.5				9.5		%					$	247			5.1					5.1	%
Incurred losses and LAE		3,209.2		2,692.7		3,811.7		516.5	19.2%		(1,119.0)	(29.4)%	Incurred losses and LAE		3,329			3,926				3,926			3,750					3,750		(597)						(597)		(15.2)						(15.2)	%						176			4.7					4.7	%
Commission and brokerage		1,120.0		1,027.3		923.9		92.7	9.0%		103.4	11.2%	Commission and brokerage		1,545			1,308				1,308			1,229					1,229		237						237		18.2						18.2	%						79			6.4					6.4	%
Other underwriting expenses		119.3		110.0		97.9		9.3	8.5%		12.1	12.4%	Other underwriting expenses		167			138				138			142					142		29						29		20.9						20.9	%						(4)			(2.8)					(2.8)	%
Underwriting gain (loss)	$	36.2	$	(33.9)	$	(1,447.2)	$	70.1	-207.0%	$	1,413.3	(97.7)%	Underwriting gain (loss)		$	596		$			$	(224)		$				$	(220)		$				$	821			NM					NM							$	(4)			1.7				1.7		%

									Point Chg			Point Chg
																		Point Chg
																		Point Chg
																		Point Chg																															Point Chg
Loss ratio		71.6%		70.9%		112.6%			0.7			(41.7)
Commission and brokerage ratio		25.0%		27.1%		27.3%			(2.1)			(0.2)
Other underwriting expense ratio		2.6%		2.9%		2.8%			(0.3)			0.1
Combined ratio		99.2%		100.9%		142.7%			(1.7)			(41.8)

(Some amounts may not reconcile due to rounding)

(Some amounts may not reconcile due to rounding.)

(NM - not meaningful)

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Premiums.Gross written premiums increased by ~~14.5%~~22.1% to ~~$5,265.7 million~~$7.2 billion in~~2020~~ 2023 from ~~$4,600.4 million~~$5.9 billion in ~~2019, primarily due to increases~~2022. The increase in gross written premiums reflects growth across all lines of business, particularly property pro rata, ~~business, casualty excess of loss writings~~ and property ~~catastrophe~~ excess of loss business. Net written premiums increased ~~by 18.1%~~ to ~~$4,632.3 million~~$6.2 billion in~~2020~~ ~~compared to $3,923,8 million~~ 2023 from $5.2 billion in ~~2019.~~ ~~The difference between the change in gross written premiums compared to the change in net written premiums is primarily due to the impact of changes in affiliated reinsurance contracts.~~ 2022. Premiums earned increased ~~18.1%~~9.5% to ~~$4,484.7 million~~$5.6 billion in ~~2020~~2023 compared to ~~$3,796.2 million~~$5.1 billion in ~~201~~9. 2022. The change in premiums earned relative to net written premiums is primarily the result of timing; premiums are earned ratably over the coverage period whereas written premiums are generally recorded at the initiation of the coverage period.

~~Gross~~

During 2023, the Company refined its premium estimation methodology for its risk attaching reinsurance contracts within its Reinsurance Segment to continue to recognize gross written ~~premiums increased by 0.7% to $4,600.4 million~~premium over the term of the treaty, albeit over a different pattern than what was previously used. The refined estimate resulted in~~2019~~ ~~from $4,569.5 million in~~ ~~2018, primarily due to~~ an increase in treaty casualty writings and mortgage business, partially offset by a decline in treaty property business, including lower reinstatement premiums. Net written premiums increased by 11.5% to $3,923.8 million in~~2019~~ ~~compared to $3,519.7 million in~~ ~~2018.~~ ~~The difference between the change in~~of gross written ~~premiums compared~~premium for the twelve months ended December 31, 2023 period and has further aligned the estimation methodology across the reinsurance division globally. This change had no impact on the total written premium to ~~the change in net written premiums is primarily due to the impact of changes in affiliated reinsurance contracts.~~ ~~Premiums earned increased 12.1% to $3,796.2 million in 2019 compared to $3,386.4 million in 201~~8. ~~The change in premiums earned relative to net written premiums is the result of timing; premiums are earned ratably~~be recognized over the ~~coverage period whereas written premiums are recorded at the initiation~~term of the ~~coverage period.~~

treaty. There was no impact on net earned premium and therefore, no impact on income from continuing operations, net income, or any related per-share amounts.

Incurred Losses and LAE.The following table presents the incurred losses and LAE for the Reinsurance segment for the periods ~~indicated.~~

indicated:

	Years Ended December 31,
	Current		Ratio %/		Prior		Ratio %/		Total		Ratio %/
	Years Ended December 31,																															Years Ended December 31,
(Dollars in millions)	Year		Pt Change		Years		Pt Change		Incurred		Pt Change		(Dollars in millions)		Current Year					Ratio %/ Pt Change				Prior Years					Ratio %/ Pt Change				Total Incurred						Ratio %/ Pt Change
2020
2023
Attritional
Attritional
Attritional	$	2,692.2	60.0%		$	187.3	4.2%		$	2,879.5	64.2%		$	3,371			59.8		59.8		%		$	(351)			(6.2)		(6.2)	%			$	3,020			53.6			53.6	%
Catastrophes		342.5	7.6%			(12.8)	(0.3)%			329.7	7.4%		Catastrophes		330			5.8			5.8	%			(21)			(0.4)		(0.4)	%				309			5.5			5.5	%
Total segment	$	3,034.7	67.7%		$	174.5	3.9%		$	3,209.2	71.6%		Total segment		$	3,701		65.7			65.7	%			$	(372)		(6.6)		(6.6)	%				$	3,329		59.1			59.1	%

2019
2022
2022
2022
Attritional
Attritional
Attritional	$	2,140.1	56.4%		$	(15.4)	(0.4)%		$	2,124.7	56.0%		$	3,077			59.8		59.8		%		$	(18)			(0.4)		(0.4)	%			$	3,058			59.4			59.4	%
Catastrophes		509.3	13.4%			58.7	1.5%			568.0	14.9%		Catastrophes		870			16.9			16.9	%			(3)			(0.1)		(0.1)	%				868			16.9			16.9	%
Total segment	$	2,649.4	69.8%		$	43.3	1.1%		$	2,692.7	70.9%		Total segment		$	3,947		76.7			76.7	%			$	(21)		(0.4)		(0.4)	%				$	3,926		76.3			76.3	%

2018
2021
2021
2021
Attritional
Attritional
Attritional	$	2,130.0	62.9%		$	5.8	0.2%		$	2,135.8	63.1%		$	2,976			60.7		60.7		%		$	(15)			(0.3)		(0.3)	%			$	2,961			60.4			60.4	%
Catastrophes		1,117.5	33.0%			558.4	16.5%			1,675.9	49.5%		Catastrophes		792			16.2			16.2	%			(3)			(0.1)		(0.1)	%				789			16.1			16.1	%
Total segment	$	3,247.6	95.9%		$	564.2	16.7%		$	3,811.7	112.6%		Total segment		$	3,767		76.9			76.9	%			$	(18)		(0.4)		(0.4)	%				$	3,750		76.5			76.5	%

Variance 2020/2019
Variance 2023/2022
Variance 2023/2022
Variance 2023/2022
Attritional
Attritional
Attritional	$	552.1	3.6	pts	$	202.7	4.6	pts	$	754.8	8.2	pts	$	295			—		—		pts		$	(333)			(5.9)		(5.9)	pts			$	(38)			(5.8)			(5.8)	pts
Catastrophes		(166.8)	(5.8)	pts		(71.5)	(1.8)	pts		(238.3)	(7.5)	pts	Catastrophes		(541)			(11.1)			(11.1)	pts			(18)			(0.3)		(0.3)	pts				(559)			(11.4)			(11.4)	pts
Total segment	$	385.3	(2.1)	pts	$	131.2	2.8	pts	$	516.5	0.7	pts	Total segment		$	(246)		(11.0)			(11.0)	pts			$	(351)		(6.2)		(6.2)	pts				$	(597)		(17.2)			(17.2)	pts

Variance 2019/2018
Variance 2022/2021
Variance 2022/2021
Variance 2022/2021
Attritional
Attritional
Attritional	$	10.1	(6.5)	pts	$	(21.2)	(0.6)	pts	$	(11.1)	(7.1)	pts	$	101			(1.0)		(1.0)		pts		$	(3)			—		—	pts			$	98			(1.0)			(1.0)	pts
Catastrophes		(608.2)	(19.6)	pts		(499.7)	(15.0)	pts		(1,107.9)	(34.6)	pts	Catastrophes		78			0.7			0.7	pts			—			—		—	pts				78			0.7			0.7	pts
Total segment	$	(598.2)	(26.1)	pts	$	(520.9)	(15.6)	pts	$	(1,119.0)	(41.7)	pts	Total segment		$	179		(0.2)			(0.2)	pts			$	(3)		—		—	pts				$	176		(0.3)			(0.3)	pts

(Some amounts may not reconcile due to rounding.)

(Some amounts may not reconcile due to rounding.)

Incurred losses ~~increased~~decreased by ~~19.2%~~15.2% to ~~$3,209.2 million~~$3.3 billion in~~2020~~ 2023 compared to ~~$2,692.7 million~~$3.9 billion in ~~2019.~~ 2022. The ~~increase~~decrease was primarily due to $351 million of favorable development on prior year attritional losses in 2023 and a decrease of $541 million in current year catastrophe losses, partially offset by an increase of ~~$552.1~~$295 million in current year attritional losses. The net favorable development on prior year attritional losses mainly related to a combination of well seasoned mortgage and short-tail business, offset by $37 million of commutations from stop loss agreements between Everest Re and Bermuda Re that are embedded within the Reinsurance Segment’s net favorable development on prior year attritional losses. The increase in current year attritional losses was primarily related to ~~$116.4 million of losses from the COVID-19 pandemic and~~ the impact of the increase in premiums earned, as well as a $202.7 million increase in development on prior years attritional losses in 2020 compared to 2019. The increase in incurred losses was partially offset by a decline of $166.8 million in current year catastrophe losses and $71.5 million of improvement in development on prior years catastrophe losses in 2020 compared to 2019. earned. The current year catastrophe losses of ~~$342.5~~$330 million in ~~2020~~2023 related primarily ~~related~~ to the 2023 Turkey earthquakes ($92 million), Hurricane ~~Laura~~Otis ($~~96.5~~84 million), the ~~Northern California wildfires~~2023 New Zealand storms ($~~44.1~~40 million), the ~~California Glass~~2023 Morocco earthquake ($40 million), the

Table of Contents

2023 Hawaii wildfire ($29.5 million), Hurricane Zeta ($28.5 million), Hurricane Isaias ($17.8 million), the Derecho storms ($17.5 million), the Nashville tornadoes ($17.3 million), Oregon wildfires ($17.0 million), Hurricane Delta ($16.5 million), Hurricane Sally ($15.5 million), the Calgary storms in Canada ($14.9 million), the Queensland hailstorm ($10.0 million), the Australia East Coast storm ($6.8 million), the 2020 Australia fires ($6.521 million), and Hurricane Idalia ($20 million), with the ~~U.S. Civil Unrest ($4.1 million).~~remaining losses resulting from various storm events. The current year catastrophe losses of ~~$509.3~~$870 million in ~~2019~~2022 related primarily ~~related~~ to ~~Typhoon Hagibis~~Hurricane Ian ($~~184.0~~669 million), the 2022 Australia floods ($75 million), the 2022 South Africa flood ($43 million), Hurricane ~~Dorian~~Fiona ($~~157.0 million), Typhoon Faxai ($119.3 million), the Dallas tornadoes ($25.0~~24 million), and the ~~Townsville Monsoon in Australia~~2022 Canada derecho ($~~24.1 million).~~

~~Incurred losses decreased by 29.4% to $2,692.7 million in2019~~ ~~compared to $3,811.7 million~~in ~~2018.~~ The decrease was primarily due to a decline of $608.2 million in current year catastrophe losses and a $499.7 million decrease in development on prior year catastrophe losses in 2019 compared to 2018, primarily related to development on Hurricane Harvey, Irma and Maria and the 2017 California wildfires in 2018. The increases

in loss estimates in 2018 for Hurricane Harvey, Irma and Maria were mostly driven by re-opened claims reported in the second quarter of 2018 and loss inflation from higher than expected loss adjustment expenses and in particular, their impact on aggregate covers. ~~The current year catastrophe losses of $509.3 million in 2019 are outlined above. The current year catastrophe losses of $1,117.5 million in 2018 primarily related to Hurricane Michael ($419.5~~20 million), Camp wildfire ($297.0 million), Woolsey wildfire ($151.0 million), Typhoon Jebi ($66.6 million), Hurricane Florence ($51.3 million), Cyclone Mekunu ($43.7 million), Typhoon Trami ($25.0 million), Australia hailstorm ($24.0 million), other 2018 California wildfires ($23.1 million), Japan Floods ($5.5 million), andwith the ~~U.S. winter storms ($1.3 million).~~

remaining losses resulting from various storm events.

Segment Expenses. Commission and brokerage increased to ~~$1,120.0 million~~ $1.5 billion in ~~2020~~ 2023 compared to ~~$1,027.3 million~~ $1.3 billion in ~~2019~~. 2022. The increase was mainly due to the impact of the increase in premiums earned and changes in the mix of business. Segment other underwriting expenses increased to ~~$119.3~~$167 million in ~~2020~~ 2023 from ~~$110.0~~$138 million in ~~2019, mainly~~ ~~due to the impact of the increase in premiums earned.~~

~~Commission and brokerage increased to $1,027.3 million~~ in ~~2019~~ ~~compared to $923.9 million~~ in ~~2018~~. ~~The increase was mainly due to changes in affiliated reinsurance agreements, the impact of the increase in premiums earned and changes in the mix of business.~~ ~~Segment other underwriting expenses increased to $110.0 million~~ in ~~2019~~ ~~from $97.9 million~~ in ~~2018, mainly due to the impact of changes in affiliated reinsurance contracts and the impact of the increases in premiums earned.~~

2022.

Insurance.

The following table presents the underwriting results and ratios for the Insurance segment for the periods ~~indicated.~~

indicated:

	Years Ended December 31,						2020/2019				2019/2018
	Years Ended December 31,																												Years Ended December 31,																	2023/2022												2022/2021
(Dollars in millions)	2020		2019		2018		Variance		% Change		Variance		% Change		(Dollars in millions)		2023						2022							2021							Variance							% Change							Variance								% Change
Gross written premiums	$	2,691.3	$	2,452.7	$	2,004.1	$	238.6		9.7%	$	448.6		22.4%	Gross written premiums		$	3,936		$			$	3,798		$				$	3,352		$				$	138			3.6				3.6		%					$	445			13.3				13.3	%
Net written premiums		2,006.4		1,851.2		1,512.2		155.2		8.4%		339.0		22.4%	Net written premiums		3,007			2,828				2,828			2,503					2,503		180						180		6.3						6.3	%						325			13.0				13.0	%

Premiums earned
Premiums earned
Premiums earned	$	1,921.9	$	1,692.9	$	1,452.7	$	229.0		13.5%	$	240.2		16.5%	$	2,900			$		$	2,729			$			$	2,279			$			$	171			6.3				6.3		%					$	450			19.7					19.7	%
Incurred losses and LAE		1,399.0		1,136.4		999.3		262.7		23.1%		137.2		13.7%	Incurred losses and LAE		2,249			1,897				1,897			1,637					1,637		353						353		18.6						18.6	%						260			15.9				15.9	%
Commission and brokerage		253.4		242.8		217.8		10.6		4.4%		25.0		11.5%	Commission and brokerage		306			325				325			284					284		(18)						(18)		(5.6)						(5.6)	%						41			14.3				14.3	%
Other underwriting expenses		281.7		240.9		195.4		40.7		16.9%		45.4		23.2%	Other underwriting expenses		407			364				364			312					312		44						44		12.0						12.0	%						51			16.5				16.5	%
Underwriting gain (loss)	$	(12.2)	$	72.8	$	40.2	$	(84.9)		(116.7)%	$	32.7		81.3%	Underwriting gain (loss)		$	(64)		$			$	144		$				$	46		$				$	(207)			NM					NM							$	98			NM				NM

										Point Chg				Point Chg
																				Point Chg
																				Point Chg
																				Point Chg																															Point Chg
Loss ratio		72.8%		67.1%		68.8%				5.7				(1.7)
Commission and brokerage ratio		13.2%		14.3%		15.0%				(1.1)				(0.7)
Other underwriting expense ratio		14.6%		14.3%		13.4%				0.3				0.9
Combined ratio		100.6%		95.7%		97.2%				4.9				(1.5)

(Some amounts may not reconcile due to rounding)															(NM, not meaningful)

(Some amounts may not reconcile due to rounding)

(NM, not meaningful)

Premiums. Gross written premiums increased by ~~9.7%~~3.6% to ~~$2,691.3 million~~ $3.9 billion in ~~2020~~ 2023 compared to ~~$2,452.7 million~~ $3.8 billion in ~~2019. This~~2022. The increase ~~was related to increases~~ in insurance premiums reflects growth across multiple lines of business, particularly specialty casualty business, ~~property~~property/short tail business and ~~professional liability business.~~other specialty business, driven by positive rate and exposure increases, new business and strong renewal retention. Net written premiums increased by ~~8.4%~~6.3% to ~~$2,006.4 million~~ $3.0 billion in ~~2020~~ 2023 compared to ~~$1,851.2 million~~ $2.8 billion in ~~2019~~ ~~which is consistent with the change~~2022. The higher percentage increase in net written premiums compared to gross written premiums. was mainly due to higher net retention resulting from changes in the mix of business. Premiums earned increased ~~13.5%~~by 6.3% to ~~$1,921.9 million~~ $2.9 billion in ~~2020~~ 2023 compared to ~~$1,692.9 million~~ $2.7 billion in ~~2019~~. 2022. The change in premiums earned relative to net written premiums is primarily the result of timing; premiums are earned ratably over the coverage period whereas written premiums are generally recorded at the initiation of the coverage period.

~~Gross written premiums increased by 22.4% to $2,452.7 million~~ in ~~2019~~ ~~compared to $2,004.1 million~~ in ~~2018. This increase was related to most lines~~Table of ~~business including casualty, energy and accident and health. Net written premiums increased by 22.4% to $1,851.2 million~~ in ~~2019~~ ~~compared to $1,512.2 million~~ in ~~2018 which is consistent with the change in gross written premiums. Premiums earned increased 16.5% to $1,692.9 million~~ in ~~2019~~ ~~compared to $1,452.7 million~~ in ~~2018~~. ~~The change in premiums earned is the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.~~

Contents

Incurred Losses and LAE.The following table presents the incurred losses and LAE for the Insurance segment for the periods ~~indicated.~~

indicated:

	Years Ended December 31,
	Current		Ratio %/		Prior		Ratio %/		Total		Ratio %/
	Years Ended December 31,																															Years Ended December 31,
(Dollars in millions)	Year		Pt Change		Years		Pt Change		Incurred		Pt Change		(Dollars in millions)		Current Year					Ratio %/ Pt Change				Prior Years					Ratio %/ Pt Change				Total Incurred						Ratio %/ Pt Change
2020
2023
Attritional
Attritional
Attritional	$	1,305.1	67.9%		$	26.3	1.4%		$	1,331.3	69.3%		$	1,883			64.9		64.9		%		$	352			12.1		12.1	%			$	2,234			77.1			77.1	%
Catastrophes		68.0	3.5%			(0.4)	(0.0)%			67.7	3.5%		Catastrophes		16			0.6			0.6	%			(1)			—		—	%				15			0.5			0.5	%
Total segment	$	1,373.1	71.4%		$	25.9	1.3%		$	1,399.0	72.8%		Total segment		$	1,899		65.5			65.5	%			$	351		12.1		12.1	%				$	2,249		77.6			77.6	%

2019
2022
2022
2022
Attritional
Attritional
Attritional	$	1,131.3	66.8%		$	(0.5)	—%		$	1,130.8	66.8%		$	1,751			64.2		64.2		%		$	30			1.1		1.1	%			$	1,781			65.3			65.3	%
Catastrophes		4.0	0.2%			1.7	0.1%			5.7	0.3%		Catastrophes		117			4.3			4.3	%			(1)			—		—	%				116			4.3			4.3	%
Total segment	$	1,135.3	67.0%		$	1.2	0.1%		$	1,136.4	67.1%		Total segment		$	1,868		68.5			68.5	%			$	29		1.1		1.1	%				$	1,897		69.5			69.5	%

2018
2021
2021
2021
Attritional
Attritional
Attritional	$	962.6	66.3%		$	—	—%		$	962.6	66.3%		$	1,463			64.2		64.2		%		$	23			1.0		1.0	%			$	1,486			65.2			65.2	%
Catastrophes		42.1	2.9%			(5.4)	(0.4)%			36.7	2.5%		Catastrophes		151			6.6			6.6	%			—			—		—	%				151			6.6			6.6	%
Total segment	$	1,004.7	69.2%		$	(5.4)	(0.4)%		$	999.3	68.8%		Total segment		$	1,614		70.8			70.8	%			$	23		1.0		1.0	%				$	1,637		71.8			71.8	%

Variance 2020/2019
Variance 2023/2022
Variance 2023/2022
Variance 2023/2022
Attritional
Attritional
Attritional	$	173.8	1.1	pts	$	26.8	1.4	pts	$	200.6	2.5	pts	$	132			0.8		0.8		pts		$	322			11.0		11.0	pts			$	454			11.8			11.8	pts
Catastrophes		64.0	3.3	pts		(2.1)	(0.1)	pts		62.0	3.2	pts	Catastrophes		(101)			(3.7)			(3.7)	pts			—			—		—	pts				(101)			(3.7)			(3.7)	pts
Total segment	$	237.8	4.4	pts	$	24.7	1.2	pts	$	262.7	5.7	pts	Total segment		$	31		(3.0)			(3.0)	pts			$	322		11.0		11.0	pts				$	353		8.1			8.1	pts

Variance 2019/2018
Variance 2022/2021
Variance 2022/2021
Variance 2022/2021
Attritional
Attritional
Attritional	$	168.7	0.5	pts	$	(0.5)	—	pts	$	168.2	0.5	pts	$	288			—		—		pts		$	7			0.1		0.1	pts			$	294			—			—	pts
Catastrophes		(38.1)	(2.7)	pts		7.1	0.5	pts		(31.0)	(2.2)	pts	Catastrophes		(34)			(2.3)			(2.3)	pts			(1)			—		—	pts				(35)			(2.4)			(2.4)	pts
Total segment	$	130.6	(2.2)	pts	$	6.6	0.5	pts	$	137.2	(1.7)	pts	Total segment		$	254		(2.4)			(2.4)	pts			$	6		—		—	pts				$	260		(2.3)			(2.3)	pts

(Some amounts may not reconcile due to rounding.)

(Some amounts may not reconcile due to rounding.)

Incurred losses and LAE increased by ~~23.1%~~18.6% to ~~$1,399.0 million~~ $2.2 billion in ~~2020~~ 2023 compared to ~~$1,136.4 million~~ $1.9 billion in ~~2019,~~ 2022. The increase was mainly due to $352 million of net unfavorable development on prior year attritional losses in 2023, mainly related to casualty lines in accident years 2016 through 2019 that were impacted by social inflation and an increase of ~~$173.8~~$132 million of current year attritional losses, partially offset by a decrease of $101 million in current year catastrophe losses. The increase in current year attritional losses was primarily due to the impact of the increase in premiums earned. The current year catastrophe losses of $16 million in 2023 related primarily to the 2023 third quarter U.S. storms ($5 million), the 2023 Hawaii wildfire ($5 million) and the 2023 December U.S. East Coast flooding ($5 million), with the remaining losses resulting from ~~$38.4~~various storm events. The $117 million of current year catastrophe losses in 2022 related primarily to Hurricane Ian ($99 million), with the remaining losses resulting from various storm events.

Segment Expenses. Commission and brokerage decreased to $306 million in 2023 compared to $325 million in 2022 primarily due to changes in the ~~COVID-19 pandemic and~~mix of business. Segment other underwriting expenses increased to $407 million in 2023 compared to $364 million in 2022. The increase was mainly due to the impact of the increase in premiums earned ~~an increase of $64.0 million in current year catastrophe losses~~ and ~~a $26.8 million increase in development on prior years attritional losses in 2020 compared to 2019.~~The $68.0 million of current year catastrophe losses in 2020, primarily related to Hurricane Laura ($18.5 million), Hurricane Sally ($15.9 million), the U.S. Civil Unrest ($10.4 million), Hurricane Zeta ($8.0 million), the Nashville tornadoes ($5.5 million), the Derecho storms ($3.0 million), the Calgary storms in Canada ($2.5 million), Hurricane Isaias ($2.2 million), and Hurricane Delta ($2.0 million).~~The current year catastrophe losses of $4.0 million in 2019 primarily related to Hurricane Dorian ($4.0 million).~~

~~Incurred losses and LAE increased by 13.7% to $1,136.4 million~~ in ~~2019~~ ~~compared to $999.3 million~~ in ~~2018,~~ ~~mainly due to an increase of $168.7 million in current year attritional losses, resulting from the impact of the increase in premiums earned~~, partially offset by a decrease of $38.1 million in current year catastrophe losses. The current year catastrophe losses of $4.0 million in 2019 primarily related to Hurricane Dorian ($4.0 million). The current year catastrophe losses of $42.1 million in 2018 primarily related to Hurricane Michael ($24.0 million), Hurricane Florence ($9.5 million), the U.S. winter storms ($7.1 million) and other 2018 California wildfires ($1.5 million).

~~Segment Expenses.Commission and brokerage increased to $253.4 million~~ in ~~2020~~ ~~compared to $242.8 million~~ in ~~2019~~. ~~The increase was mainly due to changes in affiliated reinsurance agreements and the impact of increases in premiums earned.~~ ~~Segment other underwriting expenses increased to $281.7 million~~ in ~~2020~~ ~~compared to $240.9 million~~ in ~~2019. The increases were mainly due to the impact of the increases in premiums earned and~~ expenses related to the continued build out of the insurance business.

~~Commission~~

LIQUIDITY AND CAPITAL RESOURCES

Capital. Stockholder’s equity at December 31, 2023 and ~~brokerage increased~~December 31, 2022 was $7.2 billion and $5.7 billion, respectively. Management’s objective in managing capital is to ~~$242.8 million~~ ensure its overall capital level, as well as the capital levels of its operating subsidiaries, exceed the amounts required by regulators, the amount needed to support our current financial strength ratings from rating agencies and our own economic capital models. The Company’s capital has historically exceeded these benchmark levels.

Table of Contents

Our main operating company, Everest Re, is regulated by the State of Delaware’s Department of Insurance. The regulatory body has its own capital adequacy models based on statutory capital as opposed to GAAP basis equity. Failure to meet the required statutory capital levels could result in ~~2019~~ various regulatory restrictions.

The regulatory targeted capital and the actual statutory capital for Everest Re was as follows:


	Everest Re (1)
	At December 31,
(Dollars in millions)	2023		2022
Regulatory targeted capital	$	4,242	$	3,353
Actual capital	$	6,963	$	5,553

(1) Regulatory targeted capital represents 200% of the RBC authorized control level calculation for the applicable year.

Our financial strength ratings as determined by A.M. Best, Standard & Poor’s and Moody’s are important as they provide our customers and investors with an independent assessment of our financial strength using a rating scale that provides for relative comparisons. We continue to possess significant financial flexibility and access to debt and equity markets as a result of our financial strength, as evidenced by the financial strength ratings as assigned by independent rating agencies. See also ITEM 1, Business - “Financial Strength Ratings”.

We maintain our own economic capital models to monitor and project our overall capital as well as the capital at our operating subsidiaries. A key input to the economic models is projected income, and this input is continually compared to ~~$217.8 million~~ in ~~2018~~. ~~The increase was mainly due to changes in affiliated reinsurance agreements and the impact of increases in premiums earned.~~ ~~Segment other underwriting expenses increased to $240.9 million~~ in ~~2019~~ ~~compared to $195.4 million~~ in ~~2018. The increases were mainly due to the impact of the increases in premiums earned and~~ ~~expenses related to the continued build out of the insurance business.~~

~~SAFE HARBOR DISCLOSURE~~

This report contains forward-looking statements within the meaning of the U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statementsactual results, which may require a change in the ~~federal~~capital strategy.

We repurchased $6 million of our long-term subordinated notes during the third quarter of 2022 and recognized a gain of $1 million on the repurchase. We may continue, from time to time, to seek to retire portions of our outstanding debt securities ~~laws. In some cases, these statements can~~through cash repurchases, in open-market purchases, privately negotiated transactions or otherwise. Such repurchases, if any, will be ~~identified by~~subject to and depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved in any such transactions, individually or in the aggregate, may be material.

Liquidity. Our liquidity requirements are generally met from positive cash flow from operations. Positive cash flow results from reinsurance and insurance premiums being collected prior to disbursements for claims, with disbursements generally taking place over an extended period after the collection of premiums, sometimes a period of many years. Collected premiums are generally invested, prior to their use ~~of forward-looking words~~in such ~~as “may”, “will”, “should”, “could”, “anticipate”, “estimate”, “expect”, “plan”, “believe”, “predict”, “potential”~~disbursements, and ~~“intend”. Forward-looking statements contained in this report include information regarding our reserves~~investment income provides additional funding for loss payments. Our net cash flows from operating activities were $2.4 billion and $2.1 billion for the years ended December 31, 2023 and 2022, respectively.

If disbursements for losses and LAE, policy acquisition costs and other operating expenses were to exceed premium inflows, cash flow from reinsurance and insurance operations would be negative. The effect on cash flow from insurance operations would be partially offset by cash flow from investment income. Additionally, cash inflows from investment maturities of both short-term investments and longer-term maturities are available to supplement other operating cash flows. We do not expect to supplement negative insurance operations cash flows with investment dispositions.

As the ~~impact~~timing of payments for losses and LAE cannot be predicted with certainty, we maintain portfolios of long-term invested assets with varying maturities, along with short-term investments that provide additional liquidity for payment of claims. At December 31, 2023 and December 31, 2022, we held cash and short-term investments of $1.8 billion and $1.3 billion, respectively. Our short-term investments are generally readily marketable and can be converted to cash. In addition to these cash and short-term investments, at December 31, 2023, we had $537 million of fixed maturity securities - available for sale maturing within one year or less, $2.3 billion maturing within one to five years and $4.4 billion maturing after five years. We believe that these fixed maturity securities, in conjunction with the ~~TCJA,~~short-term investments and positive cash flow from operations, provide ample sources of liquidity for the ~~adequacy~~expected payment of ~~our provision for uncollectible balances, estimates~~losses and LAE in the near future. We do not anticipate selling a significant amount of ~~our catastrophe exposure, the effects of catastrophic and pandemic events on our financial statements and the ability of our subsidiaries~~securities to pay ~~dividends. Forward-looking statements only reflect our expectations~~losses and LAE. At December 31, 2023, we had $324 million of net pre-tax unrealized depreciation related to fixed maturity - available for sale securities, comprised of $536 million of pre-tax unrealized depreciation and $212 million of pre-tax unrealized appreciation.

Management generally expects annual positive cash flow from operations, which reflects the strength of overall pricing as well as the growth in business written. However, given the catastrophic events observed in recent periods, cash flow from operations may decline and could become negative in the near term as significant claim payments are ~~not guarantees~~made related

Table of ~~performance. These statements involve risks, uncertainties and assumptions. Actual events~~ Contents

to the catastrophes. However, as indicated above, the Company has ample liquidity to settle its catastrophe claims and/or results may differ materially from our expectations. Important factors that could cause our actual events or results to be materially different from our expectations include those discussed under the caption ITEM 1A, “Risk Factors”. We undertake no obligation to update or revise publicly any ~~forward-looking statements, whether as a result of new information, future events or otherwise.~~

payments due for its catastrophe bond program.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market Sensitive Instruments.

The SEC’s Financial Reporting Release #48 requires registrants to clarify and expand upon the existing financial statement disclosure requirements for derivative financial instruments, derivative commodity instruments and other financial instruments (collectively, “market sensitive instruments”). We do not generally enter into market sensitive instruments for trading purposes.

Our current investment strategy seeks to maximize after-tax income through a high quality, diversified, fixed maturity portfolio, while maintaining an adequate level of liquidity. Our mix of taxable and tax-preferenced investments is adjusted periodically, consistent with our current and projected operating results, market conditions and our tax position. The fixed maturity securities in the investment portfolio are comprised of non-trading ~~available for sale~~ securities. Additionally, we have invested in equity ~~securities, private equity and private placement loans.~~

securities.

The overall investment strategy considers the scope of present and anticipated Company operations. In particular, estimates of the financial impact resulting from non-investment asset and liability transactions, together with our capital structure and other factors, are used to develop a net liability analysis. This analysis includes estimated payout characteristics for which our investments provide liquidity. This analysis is considered in the development of specific investment strategies for asset allocation, duration and credit quality. The change in overall market sensitive risk exposure principally reflects the asset changes that took place during the period.

Interest Rate Risk. Our ~~$15.9~~$23.4 billion investment portfolio, atDecember 31, ~~2020~~,2023, is principally comprised of fixed maturity securities, which are generally subject to interest rate risk and some foreign currency exchange rate risk, and some equity securities, which are subject to price fluctuations and some foreign exchange rate risk. The overall economic impact of the foreign exchange risks on the investment portfolio is partially mitigated by changes in the dollar value of foreign currency denominated liabilities and their associated income statement impact.

Interest rate risk is the potential change in value of the fixed maturity securities portfolio ~~including short-term investments,~~ from a change in market interest rates. In a declining interest rate environment, it includes prepayment risk on the ~~$1,518.4 million~~$3.4 billion of mortgage-backed securities in the ~~$10,643.6 million~~$16.8 billion fixed maturity portfolio. Prepayment risk results from potential accelerated principal payments that shorten the average life and thus the expected yield of the security.

The table below displays the potential impact of ~~market~~fair value fluctuations and after-tax unrealized appreciation on our fixed maturity portfolio (including ~~$707.9 million~~$1.3 billion of short-term investments) for the period indicated based on upward and downward parallel ~~and immediate~~shifts of 100 and 200 basis ~~point shifts~~points in interest rates. For legal entities with a U.S. dollar functional currency, this modeling was performed on each security individually. To generate appropriate price estimate on mortgage-backed securities, changes in prepayment expectations under different interest rate environments were taken into account. For legal entities with non-U.S. dollar functional currency, the effective duration of the involved portfolio of securities was used as a proxy for theThe market value change under the various interest rate ~~change scenarios.~~

changes scenarios was estimated taking duration into account with modeling done at the individual security level.

	Impact of Interest Rate Shift in Basis Points
	At December 31, 2020
	Impact of Interest Rate Shift in Basis Points																							Impact of Interest Rate Shift in Basis Points
	At December 31, 2023																							At December 31, 2023
(Dollars in millions)	-200			-100			O			100			200			(Dollars in millions)	-200		-100		0		100		200
Total Market/Fair Value	$	12,041.1		$	11,696.3		$	11,351.5		$	11,006.7		$	10,661.9
Market/Fair Value Change from Base (%)		6.1	%		3.0	%		-	%		-3.0	%		-6.1	%
Total Fair Value
Fair Value Change from Base (%)																Fair Value Change from Base (%)	6.2	%	3.1	%	—	%	(3.1)	%	(6.2)	%
Change in Unrealized Appreciation
After-tax from Base ($)	$	544.8		$	272.4		$	—		$	(272.4)		$	(544.8)
After-tax from Base ($)
After-tax from Base ($)

	Impact of Interest Rate Shift in Basis Points
	At December 31, 2019
	Impact of Interest Rate Shift in Basis Points																							Impact of Interest Rate Shift in Basis Points
	At December 31, 2022																							At December 31, 2022
(Dollars in millions)	-200			-100			O			100			200			(Dollars in millions)	-200		-100		0		100		200
Total Market/Fair Value	$	8,314.4		$	8,046.1		$	7,777.8		$	7,509.5		$	7,241.2
Market/Fair Value Change from Base (%)		6.9	%		3.4	%		-	%		-3.4	%		-6.9	%
Total Fair Value
Fair Value Change from Base (%)																Fair Value Change from Base (%)	5.3	%	2.7	%	—	%	(2.7)	%	(5.3)	%
Change in Unrealized Appreciation
After-tax from Base ($)	$	423.9		$	211.9		$	—		$	(211.9)		$	(423.9)
After-tax from Base ($)
After-tax from Base ($)

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We had ~~$11,654.9 million~~$15.8 billion and ~~$10,209.5 million~~$15.0 billion of gross reserves for losses and LAE as of December 31, ~~2020~~2023 and December 31, ~~2019,~~2022, respectively. These amounts are recorded at their nominal value, as opposed to present value, which would reflect a discount adjustment to reflect the time value of money. Since losses are paid out over a period of time, the present value of the reserves is less than the nominal value. As interest rates rise, the present value of the reserves decreases and, conversely, as interest rates decline, the present value increases. These movements are ~~the opposite of~~similar to the interest rate impacts on the fair value of ~~investments.~~investments held. While the difference between present value and nominal value is not reflected in our financial statements, our financial results will include investment income over time from the investment portfolio until the claims are paid. Our loss and loss reserve obligations have an expected duration that is reasonably consistent with our fixed income portfolio.

~~Equity Risk.~~ Equity risk is the potential change in fair and/or market value of the common stock, preferred stock and mutual fund portfolios arising from changing prices. Our equity investments consist of a diversified portfolio of individual securities. The primary objective of the equity portfolio is to obtain greater total return relative to our core bonds over time through market appreciation and income.

~~The table below displays the impact on fair/market value and after-tax change in fair/market value of a 10% and 20% change in equity prices up and down for the periods indicated.~~

Impact of Percentage Change in Equity Fair/Market Values

At December 31, 2020
(Dollars in millions)
-20%

-10%

0%

10%

20%
Fair/Market Value of the Equity Portfolio
$
1,031.0

$
1,159.9

$
1,288.8

$
1,417.6

$
1,546.5
After-tax Change in Fair/Market Value

(203.6)

(101.8)

—

101.8

203.6

Impact of Percentage Change in Equity Fair/Market Values

At December 31, 2019
(Dollars in millions)
-20%

-10%

0%

10%

20%
Fair/Market Value of the Equity Portfolio
$
611.2

$
687.6

$
764.0

$
840.5

$
916.9
After-tax Change in Fair/Market Value

(120.7)

(60.4)

—

60.4

120.7

Foreign Currency Risk. Foreign currency risk is the potential change in value, income and cash flow arising from adverse changes in foreign currency exchange rates. Each of our non-U.S. ~~(“foreign”)~~ operations maintains capital in the currency of the country of its geographic location consistent with local regulatory guidelines. Each ~~foreign~~non-U.S. operation may conduct business in its local currency, as well as the currency of other countries in which it operates. The primary foreign currency exposures for these ~~foreign~~non-U.S. operations are the Singapore and Canadian Dollars. We mitigate foreign exchange exposure by generally matching the currency and duration of our assets to our corresponding operating liabilities. In accordance with ~~FASB~~U.S. GAAP guidance, the impact on the ~~market~~fair value of available for sale fixed maturities due to changes in foreign currency exchange rates, in relation to functional currency, is reflected as part of other comprehensive income. Conversely, the impact of changes in foreign currency exchange rates, in relation to functional currency, on other assets and liabilities is reflected through net income as a component of other income (expense). In addition, we translate the assets, liabilities and income of non-U.S. dollar functional currency legal entities to the U.S. dollar. This translation amount is reported as a component of other comprehensive income.

The tables below display the potential impact of a parallel and immediate 10% and 20% increase and decrease in foreign exchange rates on the valuation of invested assets subject to foreign currency exposure for the periods indicated. This analysis includes the after-tax impact of translation from transactional currency to functional currency as well as the after-tax impact of translation from functional currency to the U.S. dollar reporting currency.

	Change in Foreign Exchange Rates in Percent
	At December 31, 2020
	Change in Foreign Exchange Rates in Percent															Change in Foreign Exchange Rates in Percent
	At December 31, 2023															At December 31, 2023
(Dollars in millions)	-20%		-10%		0%		10%		20%		(Dollars in millions)	-20%	-10%	0%	10%		20%
Total After-tax Foreign Exchange Exposure	$	(162.3)	$	(81.1)	$	—	$	81.1	$	162.3

	Change in Foreign Exchange Rates in Percent
	At December 31, 2019
	Change in Foreign Exchange Rates in Percent															Change in Foreign Exchange Rates in Percent
	At December 31, 2022															At December 31, 2022
(Dollars in millions)	-20%		-10%		0%		10%		20%		(Dollars in millions)	-20%	-10%	0%	10%		20%
Total After-tax Foreign Exchange Exposure	$	(159.4)	$	(79.7)	$	—	$	79.7	$	159.4

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The financial statements and schedules listed in the accompanying Index to Financial Statements and Schedules on page F-1 are filed as part of this report.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

As required by Rule 13a-15(b) of the Securities Exchange Act of 1934 ~~(the~~(“the Exchange ~~Act)~~Act”), our management, including our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act). Based on that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of the end of the period covered by this annual report.

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Management’s Annual Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal ~~controls~~control over financial reporting. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of our financial statements for external purposes in accordance with generally accepted accounting principles.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management has assessed the effectiveness of our internal control over financial reporting as of December 31, ~~2020.~~2023. In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control –- Integrated Framework (2013). Based on our assessment we concluded that, as of December 31, ~~2020,~~2023, our internal control over financial reporting is effective based on those criteria.

Attestation Report of the Registered Public Accounting Firm

This annual report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s internal controls are not subject to attestation by the Company’s registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this annual report due to the Company’s status as a non-accelerated filer.

Changes in Internal Control Over Financial Reporting

As required by Rule 13a-15(d) of the Exchange Act, our management, including our Chief Executive Officer and Chief Financial Officer, has evaluated our internal control over financial reporting to determine whether any changes occurred during the fourth fiscal quarter covered by this annual report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Based on that evaluation, we have determined that there has been no such change during the fourth quarter.

ITEM 9B. OTHER INFORMATION

None.

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

None.

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PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Information for Item 10 is not required pursuant to General Instruction I(2) of Form 10-K.

ITEM 11. EXECUTIVE COMPENSATION

Information for Item 11 is not required pursuant to General Instruction I(2) of Form 10-K.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Information for Item 12 is not required pursuant to General Instruction I(2) of Form 10-K.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Information for Item 13 is not required pursuant to General Instruction I(2) of Form 10-K.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The PricewaterhouseCoopers LLP (and its worldwide affiliates) fees incurred are as follows for the periods indicated:

(Dollars in thousands)		2020		2019

(Dollars in millions)						(Dollars in millions)	2023	2022
(1)	Audit Fees	$	3,406.1	$	3,519.7
(2)	Audit-Related Fees		133.7		181.6
(3)	Tax Fees		691.0		497.0
(4)	All Other Fees		17.0		17.5

Audit fees include the annual audit and quarterly financial statement reviews, subsidiary audits, and procedures required to be performed by the independent auditor to be able to form an opinion on our consolidated financial statements. These other procedures include information systems and procedural reviews and testing performed in order to understand and place reliance on the systems of internal control, and consultations relating to the audit or quarterly review. Audit fees may also include statutory audits or financial audits for our subsidiaries or affiliates and services associated with SEC registration statements, periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings.

Audit-related fees include assurance and related services that are reasonably related to the performance of the audit or review of our financial statements, including due diligence services pertaining to potential business acquisitions/dispositions, accounting consultations related to accounting, financial reporting or disclosure matters not classified as “audit services”; assistance with understanding and implementing new accounting and financial reporting guidance from rule making authorities; financial audits of employee benefit plans; agreed-upon or expanded audit procedures related to accounting and/or billing records required to respond to or comply with financial, accounting or regulatory reporting matters and assistance with internal control reporting requirements.

Tax fees include tax compliance, tax planning and tax advice and is granted general pre-approval by Group’s Audit Committee.

All other fees represent an accounting research subscription and software.

Under its Charter and the “Audit and Non-Audit Services Pre-Approval Policy” (the “Policy”), the Audit Committee is required to pre-approve the audit and non-audit services to be performed by the independent auditors. The Policy mandates specific approval by the Audit Committee for any service that has not received a

general pre-approval or that exceeds pre-approved cost levels or budgeted amounts. For both specific and general pre-approval, the Audit Committee considers whether such services are consistent with the SEC’s rules on auditor independence. The Audit Committee also considers whether the independent auditors are best positioned to provide the most effective and efficient service and whether the service might enhance the Company’s ability to manage or control risk or improve audit quality. The Audit Committee is also mindful of the relationship between fees for audit and non-audit services in deciding whether to pre-approve any such services. It may determine, for each fiscal year, the appropriate ratio between the total amount of

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audit, audit-related and tax fees and a total amount of fees for certain permissible non-audit services classified below as “All Other Fees”. All such factors are considered as a whole, and no one factor is determinative. The Audit Committee further considered whether the performance by PricewaterhouseCoopers LLP of the non-audit related services disclosed below is compatible with maintaining their independence. The Audit Committee approved all of the audit-related fees, tax fees and all other fees for ~~2020~~2023 and ~~2019.~~

2022.

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PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

Exhibits

The exhibits listed on the accompanying Index to Exhibits on page E-1 are filed as part of this report except that the certifications in Exhibit 32 are being furnished to the SEC, rather than filed with the SEC, as permitted under applicable SEC rules.

Financial Statements and Schedules.

The financial statements and schedules listed in the accompanying Index to Financial Statements and Schedules on page F-1 are filed as part of this report.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on March ~~30, 2021.~~

14, 2024.


EVEREST REINSURANCE HOLDINGS, INC.


By:	~~By:~~	/S/ JUAN C. ANDRADE
	Juan C. Andrade (Chairman, President and Chief Executive Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature

Title

~~Title~~

Date

/S/ JUAN C. ANDRADE

~~Chairman,~~

President and Chief Executive Officer ~~(Principal~~

(Principal Executive Officer)

March ~~30, 2021~~

14, 2024

Juan C. Andrade

/S/ MARK KOCIANCIC

Executive Vice President and Chief

Financial Officer ~~(Principal Financial Officer)~~

March ~~30, 2021~~

14, 2024

Mark Kociancic

/S/ ROBERT J. FREILING

Senior Vice President and Chief

Accounting Officer

March 14, 2024

Robert J. Freiling

~~/S/ KEITH T. SHOEMAKER~~

~~Comptroller (Principal Accounting Officer)~~

~~March 30, 2021~~

~~Keith T. Shoemaker~~

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INDEX TO EXHIBITS

Exhibit No.

E-1

2.1

~~2.1~~

Agreement and Plan of Merger among Everest Reinsurance Holdings, Inc., Everest Re Group, ~~Ltd.~~Ltd . and Everest Re Merger Corporation, incorporated herein by reference to Exhibit 2.1 to the Registration Statement on Form S-4 (No. 333-87361)

3.1

~~3.1~~

Certificate of Incorporation of Everest Reinsurance Holdings, Inc., incorporated herein by reference to Exhibit 4.1 to the Registration Statement on Form S-8 (No. 333-05771)

3.2

~~3.2~~

By-Laws of Everest Reinsurance Holdings, Inc., incorporated herein by reference to Exhibit 3.2 to the Everest Reinsurance Holdings, Inc. Quarterly Report on Form 10-Q for the quarter ended March 31, 2000.

4.1

~~4.1~~

Indenture, dated March 14, 2000, between Everest Reinsurance Holdings, Inc. and The Chase Manhattan Bank, as Trustee, incorporated herein by reference to Exhibit 4.1 to Everest Reinsurance Holdings, Inc. Form 8-K filed on March 15, 2000.

4.2

~~4.2~~

Fourth Supplemental Indenture relating to Holdings ~~$400.0~~$400 million 4.868% Senior Notes due June 1, 2044, dated June 5 2014, between Holdings and the Bank of New York Mellon, as Trustee, incorporated herein by reference to Exhibit 4.1 to Everest Reinsurance Holdings, Inc. Form 8-K filed on July 5, 2014.

4.3

~~4.3~~

Fifth Supplemental Indenture relating to Holdings ~~$1,000.0 million~~$1.0 billion 3.50% Senior Notes due October 15, 2050, dated October 7, 2020, between Holdings and the Bank of New York Mellon, as Trustee, incorporated herein by reference to Exhibit 4.1 to Everest Reinsurance Holdings, Inc. Form 8-K filed on October 7, 2020.

4.4

~~10.1~~

Sixth Supplemental Indenture relating to Holdings $1.0 billion 3.125% Senior Notes due October 15, 2052, dated October 4, 2021, between Holdings and the Bank of New York Mellon, as Trustee, incorporated herein by reference to Exhibit 4.1 to Everest Reinsurance Holdings, Inc. Form 8-K filed on October 4, 2021.

10.1

Completion of Tender Offer relating to Everest Reinsurance Holdings, Inc. 6.60% Fixed to Floating Rate ~~Long Term~~Long-Term Subordinated Notes ~~(LoTS~~^SM)(LoTSSM) dated March 19, 2009, incorporated herein by reference to Exhibit 99.1 to Everest Re Group, Ltd. Form 8-K filed on March 31, 2009.

*10.2

Employment agreement between Everest Global Services, Inc., Everest Reinsurance Holdings Inc. and Dominic J. Addesso, dated December 4, 2015, incorporated herein by reference to Exhibit 10.1 to Everest Re Group, ~~Ltd.~~Ltd . Form 8-K filed on December 8, 2015.

*10.3

Employment agreement between Everest National Insurance Company and Jonathan M. Zaffino, dated September 8, 2017, incorporated herein by reference to Exhibit 10.1 to Everest Re Group, ~~Ltd.~~Ltd . Form 8-K filed on September 12, 2017.

*10.4

Amendment of employment agreement between Everest Global Services, Inc., Everest Re Group, Ltd., Everest Reinsurance Holdings Inc. and Dominic J. Addesso, dated November 20, 2017, incorporated herein by reference to Exhibit 10.1 to Everest Re Group, ~~Ltd.~~Ltd . Form 8-K filed November 20, 2017.

*10.5

Employment agreement between Everest Re Group Ltd., Everest Global Services, Inc., Everest Reinsurance Holdings Inc. and Juan C Andrade, dated August 1, 2019, incorporated herein by reference to Exhibit 10.1 to Everest Re Group, ~~Ltd.~~Ltd . Form 8-K filed August 8, 2019.

*10.6

Employment agreement between Everest Global Services, Inc. and Mark Kociancic, incorporated herein by reference to Exhibit 10.1 to Everest Re Group, ~~Ltd.~~Ltd . Form 8-K filed on October 1, 2020

E-1

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*10.7

Employment agreement between Everest Global Services, Inc. and James Williamson, incorporated herein by reference to Exhibit 10.2 to Everest Re Group, Ltd. Form 8-K filed on October 1, 2020

E-2

*10.8

~~23.1~~

Employment agreement between Everest Global Services, Inc. and Joseph V. Taranto , incorporated herein by reference to Exhibit 10.1 to Everest Group, Ltd. Form 10-Q filed on May 4, 2023

*10.9

Departure of Sanjoy Mukherjee, Executive Vice President, General Counsel and Secretary of Everest Group, Ltd. effective July 3, 2023, herein by reference to Exhibit 10.2 to Everest Group, Ltd. Form 10-Q filed on May 4, 2023

*10.10

Employment agreement made effective as of June 12, 2023, between Everest Global Services, Inc. and Ricardo A. Anzaldua, filed herewith

23.1

Consent of PricewaterhouseCoopers LLP, filed herewith

31.1

~~31.1~~

Section 302 Certification of Juan C. Andrade, filed herewith

31.2

~~31.2~~

Section 302 Certification of Mark Kociancic, filed herewith

32.1

~~32.1~~

Section 906 Certification of Juan C. Andrade and Mark Kociancic, filed herewith

97.1

Everest Group, Ltd. Clawback Policy

101 INS

XBRL Instance Document

101 SCH

XBRL Taxonomy Extension Schema

101 CAL

XBRL Taxonomy Extension Calculation Linkbase

101 DEF

XBRL Taxonomy Extension Definition Linkbase

101 LAB

XBRL Taxonomy Extension Label Linkbase

101 PRE

XBRL Taxonomy Extension Presentation Linkbase

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

E-3

_________________

*Management contract or compensatory plan or arrangement.

E-2

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EVEREST REINSURANCE HOLDINGS, INC.

INDEX TO FINANCIAL STATEMENTS AND SCHEDULES


			Pages
Report of Independent Registered Public Accounting Firm (PCAOB FIRM ID 238)			~~F-2~~ F-2

Consolidated Balance Sheet s a t December 31, 2023 and 2022					F-4
~~Consolidated Balance Sheets at December 31, 2020 and 2019~~			~~F-4~~


Consolidated Statements of Operations and Comprehensive Income (Loss) for the Years Ended December 31, 2023, 2022 and 2021		F-5
			~~December 31, 2020, 2019 and 2018~~		~~F-5~~


Consolidated Statements of Changes in Stockholder’s Equity for the Years Ended December 31, 2023, 2022 and 2021		F-6
			~~December 31, 2020, 2019 and 2018~~		~~F-6~~


Consolidated Statements of Cash Flows for the Years Ended December 31, 2023, 2022 and 2021		F-7
			~~December 31, 2020, 2019 and 2018~~		~~F-7~~

Notes to Consolidated Financial Statements		~~F-8~~ F-8

Schedules
~~Schedules~~

I	Summary of Investments Other Than Investments in Related Parties at December 31, ~~2020~~ 2023	~~S-1~~ S-1

II			Condensed Financial Information of Registrant:

			Balance Sheets as of December 31, ~~2020~~2023 and ~~2019~~ 2022	~~S-2~~ S-2


	Statements of Operations for the Years Ended December 31, ~~2020, 2019~~2023, 2022 and ~~2018~~ 2021	~~S-3~~ S-3


	Statements of Cash Flows for the Years Ended December 31, ~~2020, 2019~~2023, 2022 and ~~2018~~ 2021	~~S-4~~ S-4


	Notes to Condensed Financial Information	~~S-5~~ S-5

III			Supplementary Insurance Information as of and for the Years Ended December 31, 2023, 2022 and2021	S-6
			~~December 31, 2020, 2019 and 2018~~		~~S-6~~


IV	Reinsurance for the Years Ended December 31, ~~2020, 2019~~2023, 2022 and ~~2018~~ 2021	~~S-7~~

~~Schedules other than those listed above are omitted for the reason that they are not applicable or the information is otherwise contained in the Financial Statements.~~ S-7

F-1

Schedules other than those listed above are omitted for the reason that they are not applicable or the information is otherwise contained in the Financial Statements.

F-1

Table of Contents

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholder of Everest Reinsurance Holdings, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Everest Reinsurance Holdings, Inc. and its subsidiaries (the “Company”) as of December 31, ~~2020~~2023 and ~~2019,~~2022, and the related consolidated statements of operations and comprehensive income (loss), of changes in stockholder's equity and of cash flows for each of the three years in the period ended December 31, ~~2020,~~2023, including the related notes and financial statement schedules listed in the accompanying index appearing on page F-1 (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, ~~2020~~2023 and ~~2019,~~2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, ~~2020~~2023 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Valuation of the Reserve for Losses and Loss Adjustment Expenses

As described in Notes 1 and 34 to the consolidated financial statements, the Company maintains reserves equal to the estimated ultimate liability for losses and loss adjustment expense for reported and unreported claims for both its insurance and reinsurance businesses. The ~~Company~~’sCompany’s reserve for losses and loss adjustment expenses as of December 31, ~~2020~~2023 was ~~$11.7~~$15.8 billion. Reserves are based on estimates of ultimate losses and loss adjustment expenses by underwriting or accident year. Management uses a variety of statistical and

F-2

actuarial techniques to monitor reserve adequacy over time, evaluate new information as it becomes known and adjust reserves as warranted. Management considers many factors when setting reserves including (i) exposure base and projected ultimate premium; (ii) expected loss ratios by product and class of business, which are developed collaboratively by underwriters and actuaries; (~~iii~~)(iii) actuarial methodologies and assumptions which analyze loss reporting and payment experience, reports from ceding

F-2

Table of Contents

companies and historical trends, such as reserving patterns, loss payments and product mix; (iv) current legal interpretations of coverage and liability; and (v) economic conditions.

The principal considerations for our determination that performing procedures relating to the valuation of the reserve for ~~loss~~es losses and loss adjustment expenses is a critical audit matter are (i) the significant judgment by management when developing th~~eir estimate; this~~ ~~in turn led to~~their estimate, (ii) a high degree of auditor judgment, subjectivity ~~judgment~~ and effort in performing procedures and evaluating the audit evidence relating to the methodologies and the significant assumptions related to expected loss ratios and historical trends, such as reserving patterns, loss payments and product mix, and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s valuation of the reserve for losses and loss adjustment expenses, including controls over the selection of methodologies and development of significant assumptions. These procedures also included, among others, testing the completeness and accuracy of data provided by management and the involvement of professionals with specialized skill and knowledge to assist in performing procedures for a sample of products and lines of business ~~including~~:including: (i) evaluating management’s methodologies and assumptions related to expected loss ratios and historical trends, such as, reserving patterns, loss payment and product mix used for determining reserves for losses and loss adjustment ~~expenses;~~expenses and (ii) developing an independent estimate of the reserve for losses and loss adjustment expenses and comparing the independent estimate to management’s actuarially determined reserves.

/s/ PricewaterhouseCoopers LLP

New York, New York

March ~~30, 2021~~

14, 2024

We have served as the Company’s auditor since 1996.

F-3

ETable of Contents ~~VEREST REINSURANCE HOLDINGS, INC.~~

~~CONSOLIDATED BALANCE SHEETS~~

December 31,
(Dollars in thousands, except share amounts and par value per share)
2020

2019

ASSETS:

Fixed maturities - available for sale, at market value
(amortized cost: 2020, $10,248,650; 2019, $7,334,425 allowances for credit losses: 2020, $1,566; 2019, $0)
$
10,643,565

$
7,492,079
Fixed maturities - available for sale, at fair value

-

5,826
Equity securities, at fair value

1,288,767

764,049
Short-term investments (cost: 2020, $708,043; 2019, $279,824)

707,905

279,879
Other invested assets (cost: 2020, $1,094,933; 2019, $1,020,766)

1,094,933

1,020,766
Other invested assets, at fair value

1,796,479

1,982,582
Cash

378,518

411,122
Total investments and cash

15,910,167

11,956,303
Note Receivable - affiliated

300,000

300,000
Accrued investment income

80,196

54,383
Premiums receivable

1,591,980

1,337,344
Reinsurance receivables - unaffiliated

1,505,650

1,318,820
Reinsurance receivables - affiliated

2,701,655

3,125,269
Income taxes net recoverable

-

65,793
Funds held by reinsureds

267,599

228,297
Deferred acquisition costs

379,707

388,238
Prepaid reinsurance premiums

363,489

413,612
Other assets

616,640

518,127
TOTAL ASSETS
$
23,717,083

$
19,706,186

LIABILITIES:

Reserve for losses and loss adjustment expenses
$
11,654,950

$
10,209,519
Unearned premium reserve

2,385,174

2,198,932
Funds held under reinsurance treaties

46,894

41,233
Other net payable to reinsurers

277,390

267,367
Losses in course of payment

161,154

70,541
Income taxes net payable

192,877

-
Senior notes due 6/1/2044

397,194

397,074
Senior notes due 10/15/2050

979,524

-
Long term notes due 5/1/2067

223,674

236,758
Borrowings from FHLB

310,000

-
Accrued interest on debt and borrowings

10,460

2,878
Unsettled securities payable

206,693

25,230
Other liabilities

456,786

399,229
Total liabilities

17,302,770

13,848,761

Commitments and Contingencies (Note 15)

(nil)

(nil)

STOCKHOLDER'S EQUITY:

Common stock, par value: $0.01; 3,000 shares authorized;
1,000 shares issued and outstanding (2020 and 2019)

-

-
Additional paid-in capital

1,101,092

1,100,678
Accumulated other comprehensive income (loss), net of deferred income
tax expense (benefit) of $71,080 at 2020 and $16,997 at 2019

268,018

64,324
Retained earnings

5,045,203

4,692,423
Total stockholder's equity

6,414,313

5,857,425
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY
$
23,717,083

$
19,706,186

The accompanying notes are an integral part of the consolidated financial statements.

F-4

EVEREST REINSURANCE HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS


	December 31,
(In millions of U.S. dollars, par value per share)	2023		2022
ASSETS:
Fixed maturities - available for sale, at fair value	$	15,932	$	12,671
(amortized cost: 2023, $16,304; 2022,$13,699, credit allowances: 2023, $(48); 2022, $(46))
Fixed maturities - held to maturity, at amortized cost
(fair value: 2023, $850; 2022, $793 net of credit allowances: 2023, $(8); 2022, $(9))	851		811
Equity securities, at fair value	91		194
Other invested assets	3,259		2,754
Other invested assets, at fair value	1,481		1,472
Short-term investments	1,298		812
Cash	527		481
Total investments and cash	23,439		19,195
Notes receivable - affiliated	—		840
Accrued investment income	222		150
Premiums receivable (net of credit allowances: 2023, $(28); 2022, $(21))	2,245		1,721
Reinsurance recoverables - unaffiliated (net of credit allowances: 2023, $(22); 2022, $(21))	1,816		1,841
Reinsurance recoverables - affiliated	1,547		1,935
Income tax asset, net	141		288
Funds held by reinsureds	306		303
Deferred acquisition costs	659		499
Prepaid reinsurance premiums	490		463
Other assets (net of credit allowances: 2023, $(9); 2022, $(5))	774		722
TOTAL ASSETS	$	31,638	$	27,957

LIABILITIES:
Reserve for losses and loss adjustment expenses	$	15,796	$	14,977
Unearned premium reserve	3,886		3,177
Funds held under reinsurance treaties	54		43
Amounts due to reinsurers	488		436
Losses in course of payment	139		77
Income tax liability, net	29		—
Senior notes	2,349		2,347
Long-term notes	218		218
Borrowings from FHLB	819		519
Accrued interest on debt and borrowings	22		19
Unsettled securities payable	126		1
Other liabilities	526		489
TOTAL LIABILITIES	24,451		22,303

Commitments and Contingencies (Note 11)

STOCKHOLDER'S EQUITY:
Common stock, par value: $0.01; 3,000 shares authorized;
1,000 shares issued and outstanding (2023 and 2022)	—		—
Additional paid-in capital	1,102		1,102
Accumulated other comprehensive income (loss), net of deferred income tax
expense (benefit) of $(76) at 2023 and $(225) at 2022	(287)		(848)
Retained earnings	6,372		5,400
Total stockholder's equity	7,187		5,654
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$	31,638	$	27,957

The accompanying notes are an integral part of the consolidated financial statements.

F-4

Table of Contents

EVEREST REINSURANCE HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)


	Years Ended December 31,
(Dollars in thousands)	2020		2019		2018
	Years Ended December 31,									Years Ended December 31,
(In millions of U.S. dollars)							(In millions of U.S. dollars)	2023	2022		2021

REVENUES:
REVENUES:
REVENUES:
Premiums earned
Premiums earned
Premiums earned	$	6,406,576	$	5,489,035	$	4,839,058
Net investment income		375,906		356,211		314,381
Net realized capital gains (losses):
Credit allowances on fixed maturity securities		(1,566)		-		-
Other-than-temporary impairments on fixed maturity securities		-		(19,643)		(6,164)
Other net realized capital gains (losses)		51,370		439,010		(179,192)
Total net realized capital gains (losses)		49,804		419,367		(185,356)
Total net gains (losses) on investments
Other income (expense)		(14,579)		(1,589)		(9,568)
Total revenues		6,817,707		6,263,024		4,958,515

CLAIMS AND EXPENSES:
CLAIMS AND EXPENSES:
CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses
Incurred losses and loss adjustment expenses
Incurred losses and loss adjustment expenses		4,608,144		3,829,122		4,811,018
Commission, brokerage, taxes and fees		1,373,355		1,270,053		1,141,714
Other underwriting expenses		401,033		350,901		293,347
Corporate expenses		15,985		13,063		11,034
Interest, fee and bond issue cost amortization expense		35,659		34,931		30,611
Total claims and expenses		6,434,176		5,498,070		6,287,724

INCOME (LOSS) BEFORE TAXES		383,531		764,955		(1,329,209)
INCOME (LOSS) BEFORE TAXES
INCOME (LOSS) BEFORE TAXES
Income tax expense (benefit)		31,658		135,228		(367,025)

NET INCOME (LOSS)	$	351,873	$	629,727	$	(962,184)
NET INCOME (LOSS)
NET INCOME (LOSS)

Other comprehensive income (loss), net of tax:
Other comprehensive income (loss), net of tax:
Other comprehensive income (loss), net of tax:
Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period		163,080		175,482		(92,966)
Less: reclassification adjustment for realized losses (gains) included in net income (loss)		25,468		5,080		2,021
Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period
Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period
Reclassification adjustment for realized losses (gains) included in net income (loss)
Total URA(D) on securities arising during the period		188,548		180,562		(90,945)

Foreign currency translation adjustments		14,461		17,153		(36,431)
Foreign currency translation adjustments
Foreign currency translation adjustments

Benefit plan actuarial net gain (loss) for the period
Benefit plan actuarial net gain (loss) for the period
Benefit plan actuarial net gain (loss) for the period		(5,615)		(12,591)		(510)
Reclassification adjustment for amortization of net (gain) loss included in net income (loss)		6,300		5,453		5,021
Total benefit plan net gain (loss) for the period		685		(7,138)		4,511
Total other comprehensive income (loss), net of tax		203,694		190,577		(122,865)

COMPREHENSIVE INCOME (LOSS)	$	555,567	$	820,304	$	(1,085,049)

The accompanying notes are an integral part of the consolidated financial statements.
COMPREHENSIVE INCOME (LOSS)
COMPREHENSIVE INCOME (LOSS)

F-5

The accompanying notes are an integral part of the consolidated financial statements.

F-5

Table of Contents

EVEREST REINSURANCE HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF

CHANGES IN STOCKHOLDER’S EQUITY

Years Ended December 31,
(Dollars in thousands, except share amounts)
2020

2019

2018

COMMON STOCK (shares outstanding):

Balance, January 1

1,000

1,000

1,000
Balance, December 31

1,000

1,000

1,000

ADDITIONAL PAID-IN CAPITAL:

Balance, January 1
$
1,100,678

$
1,100,315

$
387,841
Capital contribution from parent

-

-

712,253
Share-based compensation plans

414

363

221
Balance, December 31

1,101,092

1,100,678

1,100,315

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS),
NET OF DEFERRED INCOME TAXES:

Balance, January 1

64,324

(126,254)

(942)
Change to beginning balance due to adoption of ASU 2016-01

-

-

(2,447)
Net increase (decrease) during the period

203,694

190,577

(122,865)
Balance, December 31

268,018

64,324

(126,254)

RETAINED EARNINGS:

Balance, January 1

4,692,423

4,062,696

5,022,433
Change to beginning balance due to adoption of ASU 2016-01

-

-

2,447
Change to beginning balance due to adoption of ASU 2016-13

907

-

-
Net income (loss)

351,873

629,727

(962,184)
Balance, December 31

5,045,203

4,692,423

4,062,696

TOTAL STOCKHOLDER'S EQUITY, December 31
$
6,414,313

$
5,857,425

$
5,036,757

The accompanying notes are an integral part of the consolidated financial statements.


	Years Ended December 31,
(In millions of U.S. dollars, except share amounts)	2023		2022		2021
COMMON STOCK (shares outstanding):
Balance, beginning of period	1,000		1,000		1,000
Balance, end of period	1,000		1,000		1,000

ADDITIONAL PAID-IN CAPITAL:
Balance, beginning of period	$	1,102	$	1,102	$	1,101
Share-based compensation plans	—		—		—
Balance, end of period	1,102		1,102		1,102

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), NET OF DEFERRED INCOME TAXES:
Balance, beginning of period	(848)		91		268
Net increase (decrease) during the period	561		(939)		(177)
Balance, end of period	(287)		(848)		91

RETAINED EARNINGS:
Balance, beginning of period	5,400		5,845		5,045

Net income (loss)	972		(445)		800
Balance, end of period	6,372		5,400		5,845

TOTAL STOCKHOLDER'S EQUITY, END OF PERIOD	$	7,187	$	5,654	$	7,038

F-6

The accompanying notes are an integral part of the consolidated financial statements.

F-6

Table of Contents

EVEREST REINSURANCE HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS


	Years Ended December 31,
(Dollars in thousands)	2020		2019		2018
	Years Ended December 31,									Years Ended December 31,
(In millions of U.S. dollars)							(In millions of U.S. dollars)	2023	2022		2021

CASH FLOWS FROM OPERATING ACTIVITIES:
CASH FLOWS FROM OPERATING ACTIVITIES:
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
Net income (loss)
Net income (loss)	$	351,873	$	629,727	$	(962,184)
Adjustments to reconcile net income to net cash provided by operating activities:
Decrease (increase) in premiums receivable		(252,850)		(24,618)		(171,642)
Decrease (increase) in premiums receivable
Decrease (increase) in premiums receivable
Decrease (increase) in funds held by reinsureds, net		(33,519)		(57)		(20,963)
Decrease (increase) in reinsurance receivables		247,165		405,574		1,260,865
Decrease (increase) in reinsurance recoverables
Decrease (increase) in income taxes		204,419		295,667		(292,728)
Decrease (increase) in prepaid reinsurance premiums		51,352		(84,181)		17,302
Increase (decrease) in reserve for losses and loss adjustment expenses		1,427,214		21,399		859,691
Increase (decrease) in unearned premiums		183,417		370,246		221,850
Increase (decrease) in other net payable to reinsurers		8,078		(50,560)		(173,810)
Increase (decrease) in amounts due to reinsurers
Increase (decrease) in losses in course of payment		90,044		113,306		66,148
Change in equity adjustments in limited partnerships		(39,880)		(45,843)		(70,494)
Distribution of limited partnership income		91,403		51,982		55,350
Change in other assets and liabilities, net		(84,902)		(60,250)		(143,047)
Non-cash compensation expense		32,217		27,421		13,863
Amortization of bond premium (accrual of bond discount)		13,926		4,308		3,735
Net realized capital (gains) losses		(49,804)		(419,367)		185,356
Net (gains) losses on investments
Net cash provided by (used in) operating activities		2,240,153		1,234,754		849,292

CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from fixed maturities matured/called - available for sale, at market value		1,126,309		937,871		741,360
Proceeds from fixed maturities sold - available for sale, at market value		626,378		2,400,869		791,368
Proceeds from fixed maturities sold - available for sale, at fair value		4,907		2,917		1,751
Proceeds from equity securities sold - at fair value		375,112		283,707		1,029,920
CASH FLOWS FROM INVESTING ACTIVITIES:
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from fixed maturities matured/called/repaid - available for sale
Proceeds from fixed maturities matured/called/repaid - available for sale
Proceeds from fixed maturities matured/called/repaid - available for sale
Proceeds from fixed maturities sold - available for sale
Proceeds from fixed maturities matured/called/repaid - held to maturity
Proceeds from equity securities sold
Distributions from other invested assets		243,002		185,116		1,043,131
Cost of fixed maturities acquired - available for sale, at market value		(4,695,090)		(3,626,139)		(3,714,695)
Cost of fixed maturities acquired - available for sale, at fair value		-		(4,243)		(4,381)
Cost of equity securities acquired - at fair value		(625,694)		(325,546)		(702,221)
Cost of fixed maturities acquired - available for sale
Cost of fixed maturities acquired - held to maturity
Cost of equity securities acquired
Cost of other invested assets acquired		(363,101)		(323,453)		(1,138,317)
Net change in short-term investments		(425,878)		(102,302)		193,623
Net change in unsettled securities transactions		200,070		(30,904)		55,967
Proceeds from repayment of long term note receivable, affiliated		-		(300,000)		250,000
Proceeds from repayment (cost of issuance) of notes receivable - affiliated
Net cash provided by (used in) investing activities		(3,533,985)		(902,107)		(1,452,494)

CASH FLOWS FROM FINANCING ACTIVITIES:
CASH FLOWS FROM FINANCING ACTIVITIES:
CASH FLOWS FROM FINANCING ACTIVITIES:
Tax benefit from share-based compensation, net of expense		(31,803)		(27,059)		(11,195)
Capital contribution from parent		-		-		500,324
FHLB advances (repayments)		310,000		-		-
Tax benefit from share-based compensation, net of expense
Tax benefit from share-based compensation, net of expense
Net FHLB borrowings (repayments)
Cost of debt repurchase		(10,647)		-		-
Proceeds from issuance of senior notes		979,417		-		-
Proceeds from issuance (cost of repayment) of note payable-affiliated		-		(300,000)		300,000
Net cash provided by (used in) financing activities		1,246,967		(327,059)		789,129

EFFECT OF EXCHANGE RATE CHANGES ON CASH		14,261		1,012		(10,957)
EFFECT OF EXCHANGE RATE CHANGES ON CASH
EFFECT OF EXCHANGE RATE CHANGES ON CASH

Net increase (decrease) in cash
Net increase (decrease) in cash
Net increase (decrease) in cash		(32,604)		6,600		174,970
Cash, beginning of period		411,122		404,522		229,552
Cash, end of period	$	378,518	$	411,122	$	404,522

SUPPLEMENTAL CASH FLOW INFORMATION:
SUPPLEMENTAL CASH FLOW INFORMATION:
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid (recovered)
Income taxes paid (recovered)
Income taxes paid (recovered)	$	(173,056)	$	(160,748)	$	(73,669)
Interest paid		27,670		34,928		30,027

NON-CASH TRANSACTIONS
Equity value of non-cash capital contribution of affiliate from parent, net of cash held by affiliate	$	-	$	-	$	211,928

The accompanying notes are an integral part of the consolidated financial statements.
NON-CASH TRANSACTIONS
NON-CASH TRANSACTIONS
Reclassification of specific investments from fixed maturity securities, available for sale at fair value
Reclassification of specific investments from fixed maturity securities, available for sale at fair value
Reclassification of specific investments from fixed maturity securities, available for sale at fair value
to fixed maturity securities, held to maturity at amortized cost net of credit allowances
to fixed maturity securities, held to maturity at amortized cost net of credit allowances
to fixed maturity securities, held to maturity at amortized cost net of credit allowances

F-7

The accompanying notes are an integral part of the consolidated financial statements.

F-7

Table of Contents

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, ~~2020, 2019~~2023, 2022 and ~~2018~~

2021

1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A.Business and Basis of Presentation.

Everest Reinsurance Holdings, Inc. (“Holdings”), a Delaware company and direct subsidiary of Everest Underwriting Group (Ireland) Limited (“Holdings Ireland”), which is a direct subsidiary of Everest Re Group, Ltd. (“Group”), through its subsidiaries, principally provides property and casualty reinsurance and insurance in the United States of America and internationally. As used in this document, “Company” means Holdings and its subsidiaries.

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The statements include all of the following domestic and foreign direct and indirect subsidiaries of the Company: Everest Reinsurance Company (“Everest Re”), Everest Global Services, Inc. (“Global Services”), Everest National Insurance Company (“Everest National”), Everest Indemnity Insurance Company (“Everest Indemnity”), Everest Security Insurance Company (“Everest Security”), Everest Reinsurance Company –- Escritório de Representação No Brasil Ltda. (“Everest Brazil”), Mt. Whitney Securities, Inc., Everest Denali Insurance Company (“Everest Denali”), Everest Premier Insurance Company (“Everest Premier”), Everest Specialty Underwriters Services, LLC, Everest International Assurance, Ltd. (“Everest Assurance”), ~~Specialty~~EverSports & Entertainment Insurance, ~~Group,~~ Inc. (“Specialty”), Specialty Insurance Group - Leisure and Entertainment Risk Purchasing Group LLC (“Specialty RPG”), Salus Systems (“Salus”) and Mt. McKinley Managers, L.L.C. All intercompany accounts and transactions have been eliminated. All amounts are reported in U.S. dollars.

~~During~~

The Company consolidates the ~~fourth quarter of 2018, Global Services was contributed to Holdings from its parent company, Holdings Ireland. The operating~~ results of ~~Global Services for~~operations and financial position of all voting interest entities ("VOE") in which the ~~fourth quarter of 2018 are included within~~Company has a controlling financial interest and all variable interest entities ("VIE") in which the ~~Company’s consolidated financial statements.~~

Company is considered to be the primary beneficiary. The consolidation assessment, including the determination as to whether an entity qualifies as a VIE or VOE, depends on the facts and circumstances surrounding each entity.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities (and disclosure of contingent assets and liabilities) at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Ultimate actual results could differ, possibly materially, from those estimates.

~~All intercompany accounts and transactions have been eliminated.~~

Certain reclassifications and format changes have been made to prior years’ amounts to conform to the ~~2020~~2023 presentation.

B. ~~Investments.~~

Investments and Cash.

Fixed maturity ~~investments~~securities designated as available for sale ~~at market value,~~ reflect unrealized appreciation and depreciation, as a result of ~~temporary~~ changes in ~~market~~fair value during the period, in stockholder’s equity, net of income taxes in “accumulated other comprehensive income (loss)” in the consolidated balance sheets, since cash flows from these investments will be primarily used to settle its reserve for losses and loss adjustment expense liabilities. The Company anticipates holding these investments for an extended period as the cash flow from interest and maturities will fund the projected payout of these liabilities.sheets. The Company reviews all of its fixed maturity, available for sale securities whose fair value has fallen below their amortized cost at the time of review. The Company then assesses whether the decline in value is due to non-credit related or credit related factors. In making its assessment, the Company evaluates the current market and interest rate environment as well as specific issuer information. Generally, a change in a security’s value caused by a change in the market, interest rate or foreign exchange environment does not constitute a credit impairment, but rather a non-credit related decline in ~~market~~fair value. Non-credit related declines in ~~market~~fair value are recorded as unrealized losses in accumulated other comprehensive income (loss). If the Company intends to sell the impaired security or is more likely than not to be required to sell the security before an anticipated recovery in value, the Company records the entire ~~fair value adjustment~~impairment in net ~~realized capital~~ gains (losses) on investments in the Company’s consolidated statements of operations and comprehensive income (loss). If the Company determines that the decline is credit related and the Company does not have the intent to sell the security; and it is more likely than not that the Company will not have to sell

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the security before recovery of its cost basis, the Company establishes a credit allowance equal to the estimated credit loss and is recorded in net ~~realized capital~~ gains (losses) on investments in the Company’s consolidated statements of operations and comprehensive income (loss). The determination of credit-related or non-credit-related impairment is first based on an assessment of qualitative factors, which may determine that a qualitative analysis is sufficient to support the conclusion that the present value of expected cash flows equals or exceeds the security’s amortized cost basis. However, if the qualitative assessment suggests a credit loss may exist, a quantitative assessment is performed, and the amount of the allowance for a given security will generally be the difference between a discounted cash flow model and the Company’s

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carrying value. The fair value adjustment that is non-credit related is recorded as a component of other comprehensive income (loss), net of tax, and is included in accumulated other comprehensive income (loss) in the Company’s consolidated balance sheets. The Company will adjust the credit allowance account for future changes in credit loss estimates for a security and record this adjustment through net ~~realized capital~~ gains (losses) on investments in the Company’s consolidated statements of operations and comprehensive income (loss).

Fixed maturity securities designated as held to maturity consist of debt securities for which the Company has both the positive intent and ability to hold to maturity or redemption and are reported at amortized cost, net of the current expected credit loss allowance. Interest income for fixed maturity securities held to maturity is determined in the same manner as interest income for fixed maturity securities available for sale. The Company evaluates fixed maturity securities classified as held to maturity for current expected credit losses utilizing risk characteristics of each security, including credit rating, remaining time to maturity, adjusted for prepayment considerations, and subordination level, and applying default and recovery rates, which include the incorporation of historical credit loss experience and macroeconomic forecasts, to develop an estimate of current expected credit losses.

The Company does not create an allowance for uncollectible interest. If interest is not received when due, the interest receivable is immediately reversed and no additional interest is accrued. If future interest is received that has not been accrued, it is recorded as income at that time.

The Company’s assessments are based on the issuers’ current and expected future financial position, timeliness with respect to interest and/or principal payments, speed of repayments and any applicable credit enhancements or breakeven constant default rates on mortgage-backed and asset-backed securities, as well as relevant information provided by rating agencies, investment advisors and analysts.

Retrospective adjustments are employed to recalculate the values of asset-backed securities. All of the Company’s asset-backed and mortgage-backed securities have a pass-through structure. Each acquisition lot is reviewed to recalculate the effective yield. The recalculated effective yield is used to derive a book value as if the new yield were applied at the time of acquisition. Outstanding principal factors from the time of acquisition to the adjustment date are used to calculate the prepayment history for all applicable securities. Conditional prepayment rates, computed with life to date factor histories and weighted average maturities, are used in the calculation of projected prepayments for pass-through security types.

For equity securities, ~~at fair value,~~ the Company reflects changes in fair value as net ~~realized capital~~ gains ~~and losses since these securities may be sold in the near term depending~~(losses) on ~~financial market conditions.~~investments. Interest income on all fixed maturities and dividend income on all equity securities are included as part of net investment income in the consolidated statements of operations and comprehensive income (loss). ~~Unrealized losses on fixed maturities, which are deemed other-than-temporary and related to the credit quality of a security, are charged to net income (loss) as net realized capital losses.~~

Short-term investments comprise securities due to mature within one year from the date of purchase and are stated at cost, which approximates ~~market~~fair value.

Realized gains or losses on sales of investments are determined on the basis of identified cost. For some non-publicly traded securities, market prices are determined through the use of pricing models that evaluate securities relative to the U.S. Treasury yield curve, taking into account the issue type, credit quality, and cash flow characteristics of each security. For other non-publicly traded securities, investment managers’ valuation committees will estimate fair value, and in many instances, these fair values are supported with opinions from qualified independent third parties. For publicly traded securities, ~~market~~fair value is based on quoted market prices or valuation models that use observable market inputs. When a sector of the financial markets is inactive or illiquid, the Company may use its own assumptions about future cash flows and risk-adjusted discount rates to determine fair value. Retrospective adjustments are employed to recalculate the values of asset-backed securities. Each acquisition lot is reviewed to recalculate the effective yield. The recalculated effective yield is used to derive a book value as if the new yield were applied at the time of acquisition. Outstanding principal factors from the time of acquisition to the adjustment date are used to calculate the prepayment history for all applicable securities. Conditional prepayment rates, computed with life to date factor histories and weighted average maturities, are used to effect the calculation of projected and prepayments for pass-through security types.

Other invested assets include limited partnerships, corporate-owned life insurance (“COLI”), rabbi trusts and prior to July 1, 2018, a private placement liquidity sweep facility. Cash contributions to and cash distributions from the sweep facility were reported gross in cash flows from investing activities in the consolidated statements of cash flows.other investments. Limited partnerships are accounted for under the equity method of accounting, which can be recorded on a monthly or quarterly ~~lag.~~ lag and are included within net investment income. Corporate-owned life insurance policies are carried at policy cash surrender value and changes in the policy cash surrender value are included within net investment income.

Other invested assets, at fair value, are comprised of convertible preferred stock of Everest Preferred International Holdings, Ltd. (“Preferred Holdings”), an affiliated entity. The fair values of the Preferred Holdings convertible preferred stock at December 31, ~~2020~~2023 and December 31, ~~2019~~2022 were determined using a pricing model.

Cash includes cash on hand. Restricted cash is included within cash in the consolidated balance sheets and represents amounts held for the benefit of third parties that is legally or contractually restricted as to its withdrawal or usage. Amounts include trust funds set up for the benefit of ceding companies.

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C.Allowance for Premium Receivable ~~Balances.~~

~~Effective January 1, 2020, the~~and Reinsurance Recoverables.

The Company ~~adopted~~applies the Current Expected Credit Losses (CECL) methodology for estimating allowances for credit losses. The Company evaluates the recoverability of its premiums and reinsurance ~~receivable~~recoverable balances and establishes an allowance for estimated uncollectible amounts. Prior to the adoption of CECL, an allowance for doubtful accounts was estimated on the basis of periodic evaluations of balances due from third parties, considering historical collection experience, solvency and current economic conditions.

Premiums receivable, excluding receivables for losses within a deductible and retrospectively-rated policy premiums, are primarily comprised of premiums due from policyholders/ ~~cedants.~~cedents. Balances are considered past due when amounts that have been billed are not collected within contractually stipulated time periods. For these balances, the allowance is estimated based on recent historical credit loss and collection experience, adjusted for current economic conditions and reasonable and supportable forecasts, when appropriate. In response to significant economic stress experienced as a result of the COVID-19 pandemic, during 2020, the Company increased the expected loss factors used to estimate the allowance based on collection experience during past moderate and severe recessions as well as experience during periods when we provided policyholders additional time to make premiums payments.

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A portion of the Company's ~~Commercial Lines~~commercial lines business is written with large deductibles or under retrospectively-rated plans. Under some commercial insurance contracts with a large deductible, the Company is obligated to pay the claimant the full amount of the claim and the Company is subsequently reimbursed by the policyholder for the deductible amount. As such, the Company is subject to credit risk until reimbursement is made. Retrospectively-rated policies are policies whereby the ultimate premium is adjusted based on actual losses incurred. Although the premium adjustment feature of a retrospectively-rated policy substantially reduces insurance risk for the Company, it presents credit risk to the Company. The Company’s results of operations could be adversely affected if a significant portion of such policyholders failed to reimburse the Company for the deductible amount or the amount of additional premium owed under retrospectively-rated policies. The Company manages these credit risks through credit analysis, collateral requirements, and oversight. The allowance for receivables for loss within a deductible and retrospectively-rated policy premiums is recorded within other assets in the consolidated balance sheets. The allowance is estimated as the amount of the receivable exposed to loss multiplied by estimated factors for probability of default. The probability of default is assigned based on each policyholder's credit rating, or a rating is estimated if no external rating is available. Credit ratings are reviewed and updated at least annually. The exposure amount is estimated net of collateral and other offsets, considering the nature of the collateral, potential future changes in collateral values, and historical loss information for the type of collateral obtained. The probability of default factors are historical corporate defaults for receivables with similar durations estimated through multiple economic cycles. Credit ratings are forward-looking and consider a variety of economic outcomes. The Company's evaluation of the required allowance for receivables for loss within a deductible and retrospectively-rated policy premiums considers the current economic environment as well as the probability-weighted macroeconomic scenarios.

In response to significant economic stress experienced as a result of the COVID-19 pandemic, the Company increased the weight of both a moderate and severe recession scenario in our estimate of the allowance for loss within a deductible and retrospectively-rated policy premiums. The ultimate impact to the Company’s financial statements from the COVID-19 pandemic could vary significantly from our estimates depending on the duration and severity of the pandemic, the duration and severity of the economic downturn and the degree to which federal, state and local government actions to mitigate the economic impact of COVID-19 are effective.

The Company records total credit loss expenses related to premiums receivable in ~~other~~Other underwriting expenses and records credit loss expenses related to deductibles ~~through~~in Incurred losses ~~incurred~~

and loss adjustment expenses in the Company’s consolidated statements of operations and comprehensive income (loss).

The allowance for uncollectible reinsurance recoverable reflects management’s best estimate of reinsurance cessions that may be uncollectible in the future due to reinsurers’ unwillingness or inability to pay. The allowance for uncollectible reinsurance recoverable comprises an allowance and an allowance for disputed balances. Based on this analysis, the Company may adjust the allowance for uncollectible reinsurance recoverable or charge off reinsurer balances that are determined to be uncollectible.

Due to the inherent uncertainties as to collection and the length of time before reinsurance recoverable become due, it is possible that future adjustments to the Company’s reinsurance recoverable, net of the allowance, could be required, which could have a material adverse effect on the Company’s consolidated results of operations or cash flows in a particular quarter or annual period.

The allowance is estimated as the amount of reinsurance ~~receivable~~recoverable exposed to loss multiplied by estimated factors for the probability of default. The reinsurance ~~receivable~~recoverable exposed is the amount of reinsurance ~~receivable~~recoverable net of collateral and other offsets, considering the nature of the collateral, potential future changes in collateral values, and historical loss information for the type of collateral obtained. The probability of default factors are historical insurer and reinsurer defaults for liabilities with similar durations to the reinsured liabilities as estimated through multiple economic cycles. Credit ratings are forward-looking and consider a variety of economic outcomes. The Company's evaluation of the required allowance for reinsurance ~~receivable~~recoverable considers the current economic environment as well as macroeconomic scenarios.

The Company expects the impact of the COVID-19 pandemic to reinsurers to be somewhat mitigated by their regulated capital and liquidity positions. The ultimate impact to the Company's financial statements could vary significantly from our estimates depending on the duration and severity of the pandemic, the duration and severity of the economic downturn and the degree to which federal, state and local government actions to mitigate the economic impact of COVID-19 are effective.

The Company records credit loss expenses related to reinsurance ~~receivable~~recoverable in Incurred losses and loss adjustment ~~expenses.~~expenses in the Company’s consolidated statements of operations and comprehensive income (loss). Write-offs of

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reinsurance ~~receivable~~recoverable and any related allowance are recorded in the period in which the balance is deemed uncollectible.

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~~Allowances are presented in the table below for the periods indicated.~~

Years Ended December 31,
(Dollars in thousands)

2020

2019
Reinsurance receivables and premium receivables

$
33,370

$
25,163

D.Deferred Acquisition Costs.

Acquisition costs, consisting principally of commissions and brokerage expenses and certain premium taxes and fees incurred at the time a contract or policy is issued and that vary with and are directly related to the Company’s reinsurance and insurance business, are deferred and amortized over the period in which the related premiums are earned. Deferred acquisition costs are limited to their estimated realizable value by line of business based on the related unearned premiums, anticipated claims and claim expenses and anticipated investment income. ~~Deferred acquisition costs amortized to income are presented in the table below for the periods indicated.~~

Years Ended December 31,
(Dollars in thousands)
2020

2019

2018
Deferred acquisition costs
$
1,373,355

$
1,270,053

$
1,141,714

E.Reserve for Losses and Loss Adjustment Expenses.

The reserve for losses and loss adjustment expenses (“LAE”) is based on individual case estimates and reports received from ceding companies. A provision is included for losses and LAE incurred but not reported (“IBNR”) based on past experience. ~~A provision is~~Provisions are also included for certain potential liabilities, including those relating to asbestos and environmental (“A&E”) exposures, catastrophe exposures, COVID-19 and other exposures, for which liabilities cannot be estimated using traditional reserving techniques. See also Note 3. The reserves are reviewed periodically and any changes in estimates are reflected in earnings in the period the adjustment is made. The Company’s loss and LAE reserves represent management’s best estimate of the ultimate liability. Loss and LAE reserves are presented gross of reinsurance ~~receivables~~recoverable and incurred losses and LAE are presented net of reinsurance.

Accruals for commissions are established for reinsurance contracts that provide for the stated commission percentage to increase or decrease based on the loss experience of the contract. Changes in estimates for such arrangements are recorded as commission expense. Commission accruals for contracts with adjustable features are estimated based on expected loss and LAE.

F.Premium Revenues.

Written premiums are earned ratably over the periods of the related insurance and reinsurance contracts. Unearned premium reserves are established relative to the unexpired contract period. For reinsurance contracts, such reserves are established based upon reports received from ceding companies or estimated using pro rata methods based on statistical data. Reinstatement premiums represent additional premium ~~received on reinsurance coverages,~~recognized and earned at the time a loss event occurs and losses are recorded, most prevalently catastrophe related, when limits have been depleted under the original reinsurance contract and additional coverage is granted. The recognition of reinstatement premiums is based on estimates of loss and LAE, which reflects management’s judgement. Written and earned premiums and the related costs, which have not yet been reported to the Company, are estimated and accrued. Premiums are net of ceded reinsurance.

During 2023, the Company refined its premium estimation methodology for its risk attaching reinsurance contracts within its Reinsurance Segment to continue to recognize gross written premium over the term of the treaty, albeit over a different pattern than what was previously used. The refined estimate resulted in an increase of gross written premium for the twelve months ended December 31, 2023 period and has further aligned the estimation methodology across the reinsurance division globally. This change had no impact on the total written premium to be recognized over the term of the treaty. There was no impact on net earned premium and therefore, no impact on income from continuing operations, net income, or any related per-share amounts.

G.Prepaid Reinsurance Premiums.

Prepaid reinsurance premiums represent unearned premium reserves ceded to other reinsurers. Prepaid reinsurance premiums for any foreign reinsurers comprising more than 10%10% of the outstanding balance at December 31, ~~2020~~2023 were collateralized either through collateralized trust arrangements, rights of offset or letters of credit, thereby limiting the credit risk to the Company.

H.Income Taxes.

The Company and its wholly owned subsidiaries file a consolidated U.S. Corporation Income Tax Return. The Company’s foreign subsidiaries and foreign branches of its U.S. subsidiaries file country and local corporation income tax returns as required. Deferred U.S. federal and foreign income taxes have been recorded to

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recognize the tax effect of temporary differences between the GAAP and income tax ~~bases~~basis of assets and liabilities, which arise because of differences between the financial reporting and income tax rules.

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As an accounting policy, the Company has adopted the aggregate portfolio approach for releasing disproportionate income tax effects from ~~AOCI.~~

Accumulated Other Comprehensive Income.

I.Foreign Currency.

~~As a global entity, the~~

The Company transacts business in numerous currencies through business units located around the world. The ~~base transactional~~functional currency for each business unit is determined by the local currency used for most economic activity in that area. Movements in exchange rates related to transactions in currencies other than a business unit’s functional currency for monetary assets and liabilities ~~at the business units between the original currency and the base currency~~ are ~~recorded~~measured through the consolidated statements of operations and comprehensive income (loss) in other income (expense), except for currency movements related to available for sale ~~investments,~~fixed maturity securities, which are excluded from net income (loss) and accumulated in stockholder’s equity, net of deferred taxes.

The business units’ ~~base~~functional currency financial statements are translated to the Company’s reporting currency, U.S. dollars, using the exchange rates at the end of period for the balance sheets and the average exchange rates in effect for the reporting period for the ~~income statements.~~statements of operations. Gains and losses resulting from translating the foreign currency financial statements, net of deferred income taxes, are excluded from net income ~~loss~~(loss) and accumulated as a separate component of other comprehensive income (loss) in stockholder’s equity.

J.Segmentation.

~~With recent changes~~

The Company, through its subsidiaries, operates in ~~executive management~~two segments: Reinsurance and ~~organizational structure,~~Insurance. During the ~~Company manages its reinsurance and insurance operations as autonomous units and key strategic decisions are based on the aggregate operating results and projections for these segments~~fourth quarter of ~~business. Accordingly, effective January 1, 2020,~~2023, the Company revised ~~it reporting~~the classification and presentation of certain products related to its accident and health business within the segment groupings. These products have been realigned from within the Reinsurance segment to the Insurance segment to appropriately reflect how the business segments to Reinsurance Operations and Insurance Operations. This replaces the previous reported segments of U.S. Reinsurance, International (reinsurance) and Insurance. The prior year presented segment information hasare managed. These changes have been ~~reformatted to reflect this change.~~reflected retrospectively. See also Note ~~17.~~

K. ~~Retroactive Reinsurance.~~

~~Premiums on ceded retroactive contracts are earned when written with~~Recent Accounting Pronouncements.

Adoption of New Accounting Standards

The Company did not adopt any new accounting standards that had a corresponding reinsurance recoverable established for the amount of reserves ceded. The initial gain, if applicable, is deferred and amortized into income over an actuarially determined expected payout period. Any future loss is recognized immediately and charged against earnings.

~~L. Application~~material impact in 2023.

Future Adoption of Recently Issued Accounting ~~Standard Changes.~~

~~Accounting for Income Taxes.~~ ~~In December 2019,~~ Standards

The Company assessed the adoption impacts of recently issued accounting standards that are affective after 2023 by the Financial Accounting Standards Board ~~(“FASB”)~~on the Company’s consolidated financial statements. Additionally, the Company assessed whether there have been material updates to previously issued accounting standards that are effective after 2023 . There were no accounting standards identified, other than those directly reference below, that are expected to have a material impact to Holdings.

Improvements to Income Tax Disclosures. InDecember 2023, the Financial Accounting Standards Board issued Accounting ~~Standards~~Standard Update ~~(“ASU”) 2019-12,~~No. 2023-09, which ~~provides simplification~~requires expanded income tax disclosures, including the disaggregation of existing ~~guidance for~~disclosures related to the tax rate reconciliation and income taxes ~~including the removal of certain exceptions related to recognition of deferred tax liabilities on foreign subsidiaries.~~paid. The guidance is effective for annual ~~reporting~~ periods beginning after December 15, ~~2020 and interim periods within that annual reporting period.~~2024. Prospective application is required, with retrospective application permitted. The Company is currently evaluating the ~~impact of the adoption of ASU 2019-12 on its financial statements.~~

~~Accounting for Cloud Computing Arrangement~~. In August 2018, FASB issued ASU 2018-15, which outlines accounting for implementation costs of a cloud computing arrangement that is a service contract. This guidance requires that implementation costs of a cloud computing arrangement that is a service contract must be capitalized and expensed in accordance with the existing provisions provided in Subtopic 350-40 regarding development of internal use software. In addition, any capitalized implementation costs should be amortized over the term of the hosting arrangement. The guidance is effective for annual reporting periods beginning after December 15, 2019 and interim periods within that annual reporting period. The adoption of ASU 2018-15 did not have a material impact on the Company’s financial statements.

~~Accounting for Impact on Income Taxes due to Tax Reform~~. In December 2017, the SEC issued Staff Accounting Bulletin (“SAB”) 118, which provides guidance on the application of FASB Accounting Standards Codification (“ASC”) Topic 740, Income Taxes, due to the enactment of TCJA. SAB 118 became effective upon release. The Company has adopted the provisions of SAB 118 with respect to measuring the tax effects for the modifications to the determination of tax basis loss reserves. In 2018, the Company recorded adjustments to

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~~the amount of tax expense it recorded in 2017 with respect to the TCJA as estimated amounts were finalized, which did not have a material impact on the Company’s financial statements.~~

~~Amortization of Bond Premium.~~ In March 2017, FASB issued ASU 2017-08, which outlines guidance on the amortization period for premium on callable debt securities. The new guidance requires that the premium on callable debt securities be amortized through the earliest call date rather than through the maturity date of the callable security. The guidance is effective for annual and interim reporting periods beginning after December 15, 2019. The adoption of ASU 2017-08 did not have a material impact on the Company’s financial statements.

~~Valuation of Financial Instruments.~~ In June 2016, FASB issued ASU 2016-13 (and has subsequently issued related guidance and amendments in ASU 2019-11 and ASU 2019-10 in November 2019) which outline guidance on the valuation of and accounting for assets measured at amortized cost and available for sale debt securities. The new guidance requires the carrying value of assets measured at amortized cost, including reinsurance and premiums receivables to be presented as the net amount expected to be collected on the financial asset (amortized cost less an allowance for credit losses valuation account). The allowance reflects expected credit losses of the financial asset which considers available information using a combination both historical information, current market conditions and reasonable and supportable forecasts. For available-for-sale debt securities, the guidance modified the previous other than temporary impairment model, now requiring an allowance for estimated credit related losses rather than a permanent impairment, which will be limited to the amount by which fair value is below amortized cost. The guidance is effective for annual and interim reporting periods beginning after December 15, 2019. The Company adopted the guidance effective January 1, 2020, on a modified retrospective basis. The adoption resulted in a cumulative adjustment of $907 ~~thousand in retained earnings, net of tax, which is disclosed separately within the Consolidated Statements of Stockholder’s Equity.~~

~~Leases.~~ In February 2016, FASB issued ASU 2016-02 (and subsequently issued ASU 2018-11 in July, 2018) which outline new guidance on the accounting for leases. The new guidance requires the recognition of lease assets and lease liabilities on the balance sheets for most leases that were previously deemed operating leases and required only lease expense presentation in the statements of operations. The guidance is effective for annual and interim reporting periods beginning after December 15, 2018. The Company adopted ASU 2016-02 effective January 1, 2019 and elected to utilize a cumulative-effect adjustment to the opening balance of retained earnings for the year of adoption. Accordingly, the Company’s reporting for the comparative periods prior to adoption continue to be presented in the financial statements in accordance with previous lease accounting guidance. The Company also elected to apply the package of practical expedients applicable to the Company ineffect the updated guidance for transition for leases in effect at adoption. The Company did not elect the hindsight practical expedient to determine the lease term of existing leases (e.g. The Company did not re-assess lease renewals, termination options nor purchase options in determining lease terms). The adoption of the updated guidance resulted in the Company recognizing a right-of-use asset of $60,325 ~~thousand as part of other assets~~ ~~and a lease liability of $66,551~~ ~~thousand as part of other liabilities~~ in the consolidated balance sheet, as well as de-recognizing the liability for deferred rent that was required under the previous guidance. The cumulative effect adjustment to the opening balance of retained earnings was zero~~. The adoption of the updated guidance did not~~will have ~~a material effect~~ on the ~~Company’s results~~Company's financial statement disclosures.

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Table of ~~operations or liquidity.~~

~~Recognition and Measurement of Financial Instruments~~Contents~~. In January 2016, the FASB issued ASU 2016-01, which outlines revised guidance on the accounting for equity investments.~~

2.INVESTMENTS

The new guidance states that all equity investments in unconsolidated entities will be measured at fair value, with the change in value being recorded through the income statement rather than being recorded within other comprehensive income. The updated guidance is effective for annual and interim reporting periods beginning after December 15, 2017. The Company adopted the guidance effective January 1, 2018. The adoption of ASU 2016-01 resulted in a cumulative change adjustment of $2,447 ~~thousand between AOCI and retained earnings, which is disclosed separately within the consolidated statement of changes in shareholders equity.~~

~~Any issued guidance and pronouncements, other than those directly referenced above, are deemed by the Company to be either not applicable or immaterial to its financial statements.~~

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~~2. INVESTMENTS~~

Effective January 1, 2020, the Company adopted ASU 2016-13 which modified the previous other than temporary impairment model for available for sale fixed maturity securities. The guidance requires the Company to record allowances for credit losses for securities that are deemed to have valuation deterioration due to credit related factors. The initial table below presents thefollowing tables show amortized cost, allowance for credit losses, gross unrealized ~~appreciation/(depreciation)~~appreciation, gross unrealized depreciation (“URA(D)”) and ~~market~~fair value of fixed maturity securities ~~at December 31, 2020 in accordance with ASU 2016-13 guidance.~~ - available for sale for the periods indicated:


	At December 31, 2023
(Dollars in millions)	Amortized Cost		Allowances for Credit Loss		Unrealized Appreciation		Unrealized Depreciation		Fair Value
Fixed maturity securities – available for sale
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	265	$	—	$	—	$	(17)	$	247
Obligations of U.S. states and political subdivisions	138		—		1		(11)		128
Corporate securities	4,400		(47)		96		(160)		4,289
Asset-backed securities	5,307		—		23		(48)		5,282
Mortgage-backed securities
Commercial	575		—		—		(53)		522
Agency residential	2,532		—		27		(124)		2,435
Non-agency residential	429		—		14		(1)		441
Foreign government securities	859		—		15		(39)		835
Foreign corporate securities	1,800		—		35		(82)		1,753
Total fixed maturity securities - available for sale	$	16,304	$	(48)	$	212	$	(536)	$	15,932

(Some amounts may not reconcile due to rounding.)


	At December 31, 2022
(Dollars in millions)	Amortized Cost		Allowances for Credit Loss		Unrealized Appreciation		Unrealized Depreciation		Fair Value
Fixed maturity securities – available for sale
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	575	$	—	$	—	$	(40)	$	535
Obligations of U.S. states and political subdivisions	444		—		2		(32)		413
Corporate securities	3,913		(45)		14		(322)		3,561
Asset-backed securities	4,111		—		5		(165)		3,951
Mortgage-backed securities
Commercial	569		—		—		(59)		509
Agency residential	1,792		—		3		(167)		1,628
Non-agency residential	3		—		—		—		3
Foreign government securities	696		—		2		(61)		637
Foreign corporate securities	1,597		(1)		4		(167)		1,433
Total fixed maturity securities - available for sale	$	13,699	$	(46)	$	30	$	(1,013)	$	12,671

(Some amounts may not reconcile due to rounding.)

The ~~second~~following table ~~presents the~~shows amortized cost, allowance for credit losses, gross ~~unrealized appreciation/(depreciation), market value~~URA(D) and ~~other-than-temporary impairments (“OTTI”) in AOCI at December 31, 2019, in accordance with previously applicable guidance~~

At December 31, 2020

Amortized

Allowances for

Unrealized

Unrealized

Market
(Dollars in thousands)
Cost

Credit Loss

Appreciation

Depreciation

Value
Fixed maturity securities

U.S. Treasury securities and obligations of
U.S. government agencies and corporations
$
659,957

$
-

$
22,032

$
-

$
681,989
Obligations of U.S. states and political
subdivisions

543,646

-

34,655

(1,255)

577,046
Corporate securities

3,316,525

(1,205)

166,072

(31,480)

3,449,912
Asset-backed securities

2,450,807

-

28,585

(5,222)

2,474,170
Mortgage-backed securities

Commercial

512,388

-

37,875

(183)

550,080
Agency residential

937,166

-

28,630

(696)

965,100
Non-agency residential

3,164

-

2

(2)

3,164
Foreign government securities

694,132

-

51,317

(3,211)

742,238
Foreign corporate securities

1,130,865

(361)

73,265

(3,903)

1,199,866
Total fixed maturity securities
$
10,248,650

$
(1,566)

$
442,433

$
(45,952)

$
10,643,565

F-14

At December 31, 2019

Amortized

Unrealized

Unrealized

Market

OTTI in AOCI
(Dollars in thousands)
Cost

Appreciation

Depreciation

Value

(a)
Fixed maturity securities

U.S. Treasury securities and obligations of
U.S. government agencies and corporations
$
768,374

$
10,128

$
(987)

$
777,515

$
-
Obligations of U.S. states and political
subdivisions

506,347

29,651

(87)

535,911

-
Corporate securities

2,777,097

70,898

(26,438)

2,821,557

245
Asset-backed securities

761,607

5,659

(1,309)

765,957

-
Mortgage-backed securities

Commercial

311,961

17,242

(154)

329,049

-
Agency residential

625,612

19,395

(320)

644,687

-
Non-agency residential

1,638

-

-

1,638

-
Foreign government securities

646,149

18,908

(7,050)

658,007

27
Foreign corporate securities

935,640

31,257

(9,139)

957,758

333
Total fixed maturity securities
$
7,334,425

$
203,138

$
(45,484)

$
7,492,079

$
605

^(a) Represents the amount of OTTI recognized in AOCI. Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date.

~~The amortized cost and market~~fair value of fixed maturity securities - held to maturity for the periods indicated:


	At December 31, 2023
(Dollars in millions)	Amortized Cost		Allowances for Credit Loss		Unrealized Appreciation		Unrealized Depreciation		Fair Value
Fixed maturity securities - held to maturity
Corporate securities	$	150	$	(2)	$	1	$	(3)	$	146
Asset-backed securities	604		(5)		4		(10)		593
Mortgage-backed securities
Commercial	21		—		—		—		21
Foreign corporate securities	84		(1)		7		—		90
Total fixed maturity securities - held to maturity	$	859	$	(8)	$	12	$	(13)	$	850

(Some amounts may not reconcile due to rounding.)

F-13

Table of Contents


	At December 31, 2022
(Dollars in millions)	Amortized Cost		Allowances for Credit Loss		Unrealized Appreciation		Unrealized Depreciation		Fair Value
Fixed maturity securities - held to maturity
Corporate securities	$	152	$	(2)	$	—	$	(6)	$	144
Asset-backed securities	634		(6)		2		(15)		614
Mortgage-backed securities
Commercial	7		—		—		—		7
Foreign corporate securities	28		(1)		2		—		28
Total fixed maturity securities - held to maturity	$	820	$	(9)	$	3	$	(22)	$	793

(Some amounts may not reconcile due to rounding.)

The amortized cost and fair value of fixed maturity securities - available for sale are shown in the following ~~tables~~table by contractual maturity. ~~Mortgage-backed securities are generally more likely to be prepaid than other fixed maturity securities.~~ As the stated maturity of such securities may not be indicative of actual maturities, the totals for mortgage-backed and asset-backed securities are shown separately.

	At December 31, 2020				At December 31, 2019
	Amortized		Market		Amortized		Market
(Dollars in thousands)	Cost		Value		Cost		Value
	At December 31, 2023											At December 31, 2023		At December 31, 2022
(Dollars in millions)									(Dollars in millions)	Amortized Cost	Fair Value		Amortized Cost		Fair Value
Fixed maturity securities – available for sale
Due in one year or less
Due in one year or less
Due in one year or less	$	658,561	$	659,622	$	569,506	$	563,730
Due after one year through five years		2,911,285		3,036,151		2,919,966		2,963,903
Due after five years through ten years		1,927,265		2,079,866		1,541,695		1,602,642
Due after ten years		848,014		875,412		602,440		620,473
Asset-backed securities		2,450,807		2,474,170		761,607		765,957
Mortgage-backed securities
Commercial		512,388		550,080		311,961		329,049
Commercial
Commercial
Agency residential		937,166		965,100		625,612		644,687
Non-agency residential		3,164		3,164		1,638		1,638
Total fixed maturity securities	$	10,248,650	$	10,643,565	$	7,334,425	$	7,492,079
Total fixed maturity securities - available for sale

F-15

(Some amounts may not reconcile due to rounding.)

The amortized cost and fair value of fixed maturity securities - held to maturity are shown in the following table by contractual maturity. As the stated maturity of such securities may not be indicative of actual maturities, the totals for mortgage-backed and asset-backed securities are shown separately.


	At December 31, 2023				At December 31, 2022
(Dollars in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Fixed maturity securities – held to maturity
Due in one year or less	$	5	$	5	$	5	$	5
Due after one year through five years	59		58		63		61
Due after five years through ten years	43		42		43		41
Due after ten years	127		131		68		65
Asset-backed securities	604		593		634		614
Mortgage-backed securities
Commercial	21		21		7		7
Total fixed maturity securities - held to maturity	$	859	$	850	$	820	$	793

(Some amounts may not reconcile due to rounding.)

During 2022, the Company re-designated a portion of its fixed maturity securities from its fixed maturity - available for sale portfolio to its fixed maturity - held to maturity portfolio. The fair value of the securities reclassified at the date of transfer was $722 million, net of allowance for current expected credit losses, which was subsequently recognized as the new amortized cost basis. As of December 31, 2023, $42 million of unrealized loss from the date of the re-designation remained in accumulated other comprehensive income on the balance sheet and will be amortized into income through an adjustment to the yields of the underlying securities over the remaining life of the securities. The fair values of these

F-14

Table of Contents

securities incorporate the use of significant unobservable inputs and therefore are classified as Level 3 within the fair value hierarchy.

The Company evaluated fixed maturity securities classified as held to maturity for current expected credit losses as of December 31, 2023 utilizing risk characteristics of each security, including credit rating, remaining time to maturity, adjusted for prepayment considerations, and subordination level, and applying default and recovery rates, which include the incorporation of historical credit loss experience and macroeconomic forecasts, to develop an estimate of current expected credit losses. These fixed maturities classified as held to maturity are of a high credit quality and are all rated investment grade as of December 31, 2023.

The changes in net ~~unrealized appreciation (depreciation)~~URA(D) for the Company’s investments are ~~derived from the following sources for the periods~~ as ~~indicated:~~

follows:

Years Ended December 31,
(Dollars in thousands)
2020

2019
Increase (decrease) during the period between the market value and cost
of investments carried at market value, and deferred taxes thereon:

Fixed maturity securities
$
238,634

$
228,953
Fixed maturity securities, other-than-temporary impairment

-

(546)
Change in unrealized appreciation (depreciation), pre-tax

238,634

228,408
Deferred tax benefit (expense)

(50,086)

(47,959)
Deferred tax benefit (expense), other-than-temporary impairment

-

115
Change in unrealized appreciation (depreciation),
net of deferred taxes, included in stockholder's equity
$
188,548

$
180,562


	Years Ended December 31,
(Dollars in millions)	2023		2022
Increase (decrease) during the period between the fair value and cost of investments carried at fair value, and deferred taxes thereon:
Fixed maturity securities - available fore sale and short-term investments	$	667	$	(1,187)
Change in unrealized appreciation (depreciation), pre-tax	667		(1,187)
Deferred tax benefit (expense)	(140)		249
Change in URA(D), net of deferred taxes, included in stockholder's equity	$	527	$	(938)

The Company reviews all of its fixed maturity, available for sale securities whose fair value has fallen below their amortized cost at the time of review. The Company then assesses whether the decline in value is

(Some amounts may not reconcile due to non-credit related or credit related factors. In making its assessment, the Company evaluates the current market and interest rate environment as well as specific issuer information. Generally, a change in a security’s value caused by a change in the market, interest rate or foreign exchange environment does not constitute a credit impairment, but rather a non-credit related decline in market value. Non-credit related declines in market value are recorded as unrealized losses in accumulated other comprehensive income (loss). If the Company intends to sell the security or is more likely than not to sell the security, the Company records the entire fair value adjustment in net realized capital gains (losses) in the Company’s consolidated statements of operations and comprehensive income (loss). If the Company determines that the decline is credit related and the Company does not have the intent to sell the security; and it is more likely than not that the Company will not have to sell the security before recovery of its cost basis, the Company establishes a credit allowance equal to the estimated credit loss and is recorded in net realized capital gains (losses) in the Company’s consolidated statements of operations and comprehensive income (loss). The amount of the allowance for a given security will generally be the difference between a discounted cash flow model and the Company’s carrying value. The fair value adjustment that is non-credit related is recorded as a component of other comprehensive income (loss), net of tax, and is included in accumulated other comprehensive income (loss) in the Company’s consolidated balance sheets. The Company will adjust the credit allowance account for future changes in credit loss estimates for a security and record this adjustment through net realized capital gains (losses) in the Company’s consolidated statements of operations and comprehensive income (loss).

Prior to the adoption of ASU 2016-13 effective January 1, 2020, estimated credit losses were recorded as adjustments to the carrying value of the security and any subsequent improvement in market value were recorded through other comprehensive income.

rounding.)

F-16

The tables below display the aggregate ~~market~~fair value and gross unrealized depreciation of fixed maturity securities - available for sale, by security type and contractual maturity, in each case subdivided according to length of time that individual securities had been in a continuous unrealized loss position for the periods indicated:


	Duration of Unrealized Loss at December 31, 2023 By Security Type
	Less than 12 months				Greater than 12 months				Total
(Dollars in millions)	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
Fixed maturity securities - available for sale
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	7	$	—	$	238	$	(17)	$	245	$	(17)
Obligations of U.S. states and political subdivisions	3		—		74		(11)		77		(11)
Corporate securities	673		(47)		1,150		(112)		1,822		(160)
Asset-backed securities	179		(2)		1,958		(46)		2,138		(48)
Mortgage-backed securities
Commercial	19		—		491		(53)		511		(53)
Agency residential	203		(2)		1,030		(123)		1,233		(124)
Non-agency residential	125		(1)		3		—		128		(1)
Foreign government securities	38		(1)		423		(38)		461		(39)
Foreign corporate securities	120		(2)		821		(80)		940		(82)
Total	$	1,367	$	(54)	$	6,187	$	(481)	$	7,554	$	(536)
Securities where an allowance for credit loss was recorded	2		(1)		—		—		2		(1)
Total fixed maturity securities - available for sale	$	1,369	$	(55)	$	6,187	$	(481)	$	7,556	$	(536)

(Some amounts may not reconcile due to rounding.)

F-15

Table of Contents

Duration of Unrealized Loss at December 31, 2020 By Security Type

Less than 12 months

Greater than 12 months

Total

Gross

Gross

Gross

Market

Unrealized

Market

Unrealized

Market

Unrealized
(Dollars in thousands)
Value

Depreciation

Value

Depreciation

Value

Depreciation
Fixed maturity securities -
available for sale

Obligations of U.S. states and
political subdivisions

19,524

(999)

4,059

(256)

23,583

(1,255)
Corporate securities

240,601

(7,799)

188,853

(23,681)

429,454

(31,480)
Asset-backed securities

223,919

(4,573)

81,952

(649)

305,871

(5,222)
Mortgage-backed securities

Commercial

37,414

(182)

3,983

(1)

41,397

(183)
Agency residential

235,809

(682)

1,573

(14)

237,382

(696)
Non-agency residential

161

(2)

-

-

161

(2)
Foreign government securities

10,505

(373)

25,793

(2,838)

36,298

(3,211)
Foreign corporate securities

57,900

(2,182)

18,349

(1,721)

76,249

(3,903)
Total fixed maturity securities
$
825,833

$
(16,792)

$
324,562

$
(29,160)

$
1,150,395

$
(45,952)


	Duration of Unrealized Loss at December 31, 2023 By Maturity
	Less than 12 months				Greater than 12 months				Total
(Dollars in millions)	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
Fixed maturity securities - available for sale
Due in one year or less	$	84	$	(1)	$	263	$	(10)	$	348	$	(11)
Due in one year through five years	227		(5)		1,317		(96)		1,544		(101)
Due in five years through ten years	150		(5)		951		(128)		1,101		(133)
Due after ten years	379		(39)		174		(25)		553		(64)
Asset-backed securities	179		(2)		1,958		(46)		2,138		(48)
Mortgage-backed securities	347		(3)		1,523		(176)		1,871		(179)
Total	$	1,367	$	(54)	$	6,187	$	(481)	$	7,554	$	(536)
Securities where an allowance for credit loss was recorded	2		(1)		—		—		2		(1)
Total fixed maturity securities - available for sale	$	1,369	$	(55)	$	6,187	$	(481)	$	7,556	$	(536)

Duration of Unrealized Loss at December 31, 2020 By Maturity

Less than 12 months

Greater than 12 months

Total

Gross

Gross

Gross

Market

Unrealized

Market

Unrealized

Market

Unrealized
(Dollars in thousands)
Value

Depreciation

Value

Depreciation

Value

Depreciation
Fixed maturity securities

Due in one year or less
$
28,802

$
(1,218)

$
34,555

$
(4,142)

$
63,357

$
(5,360)
Due in one year through five years

150,106

(5,828)

116,987

(4,783)

267,093

(10,611)
Due in five years through ten years

81,492

(1,634)

13,118

(435)

94,610

(2,069)
Due after ten years

68,130

(2,673)

72,394

(19,136)

140,524

(21,809)
Asset-backed securities

223,919

(4,573)

81,952

(649)

305,871

(5,222)
Mortgage-backed securities

273,384

(866)

5,556

(15)

278,940

(881)
Total fixed maturity securities
$
825,833

$
(16,792)

$
324,562

$
(29,160)

$
1,150,395

$
(45,952)
(Some amounts may not reconcile due to rounding.)

The aggregate ~~market~~fair value and gross unrealized losses related to ~~investments~~fixed maturity securities - available for sale in an unrealized loss position at December 31, ~~2020~~2023 were $~~1,150,395 thousand~~$7.6 billion and $~~45,952 thousand,~~$536 million, respectively. The ~~market~~fair value of securities for the single issuer (the United States government) whose securities comprised the largest unrealized loss position at December 31, ~~2020,~~2023, did not exceed ~~0.2%~~1.4% of the overall ~~market~~fair value of the Company’s fixed maturity securities available for sale. The fair value of the securities for the issuer with the second largest unrealized loss comprised less than 0.5% of the Company’s fixed maturity securities. In addition, as indicated on the above table, there was no significant concentration of unrealized losses in any one market sector. The $~~16,792 thousand~~$55 million of unrealized losses related to fixed maturity securities available for sale that have been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate securities, foreign government securities, asset-backed securities as well as ~~asset backed~~commercial and agency residential mortgage-backed securities. Of these unrealized losses, $~~12,522 thousand~~$39 million were related to securities that were rated investment grade by at least one nationally recognized ~~statistical~~ rating agency. The $~~29,160 thousand~~$481 million of unrealized losses related to fixed maturity securities available for sale in an unrealized loss position for more than one year related primarily to domestic and foreign corporate securities ~~and foreign government~~as well as agency residential mortgage backed securities. Of these unrealized losses $~~5,856 thousand~~$455 million were related to securities that were rated investment grade by at least one nationally recognized ~~statistical~~ rating agency. ~~There was~~ ~~no gross unrealized depreciation for mortgage-backed securities related to sub-prime and alt-A loans.~~ In all instances, there were no projected cash flow shortfalls to recover the full book value of the investments and the related interest obligations. The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments.

F-17

~~The Company, given~~Based upon the ~~size~~Company’s current evaluation of its investment portfolio and capital position, does not have the intent to sell these securities; and it is more likely than not that the Company will not have to sell the security before recovery of its cost basis. In addition, all securities ~~currently~~ in an unrealized loss position as of December 31, 2023, the unrealized losses are ~~current with respect~~due to ~~principal~~changes in interest rates and ~~interest payments.~~

non-issuer specific credit spreads and are not credit related. In addition, the contractual terms of these securities do not permit these securities to be settled at a price less than their amortized cost.

F-16

Table of Contents

The tables below display the aggregate ~~market~~fair value and gross unrealized depreciation of fixed maturity securities available for sale, by security type and contractual maturity, in each case subdivided according to length of time that individual securities had been in a continuous unrealized loss position for the periods ~~indicated:~~

indicated.

	Duration of Unrealized Loss at December 31, 2019 By Security Type
	Less than 12 months				Greater than 12 months				Total
			Gross				Gross				Gross
	Market		Unrealized		Market		Unrealized		Market		Unrealized
(Dollars in thousands)	Value		Depreciation		Value		Depreciation		Value		Depreciation
	Duration of Unrealized Loss at December 31, 2022 By Security Type																			Duration of Unrealized Loss at December 31, 2022 By Security Type
	Less than 12 months															Less than 12 months		Greater than 12 months				Total
(Dollars in millions)													(Dollars in millions)	Fair Value	Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
Fixed maturity securities - available for sale
U.S. Treasury securities and obligations of U.S. government agencies and corporations
U.S. Treasury securities and obligations of U.S. government agencies and corporations
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	8,997	$	(141)	$	203,780	$	(846)	$	212,777	$	(987)
Obligations of U.S. states and political subdivisions		4,600		(38)		4,518		(49)		9,118		(87)
Corporate securities		334,973		(5,186)		230,679		(21,252)		565,652		(26,438)
Asset-backed securities		159,695		(887)		76,351		(422)		236,046		(1,309)
Mortgage-backed securities
Commercial		13,083		(87)		16,374		(67)		29,457		(154)
Commercial
Commercial
Agency residential		19,019		(82)		17,147		(238)		36,166		(320)
Non-agency residential		-		-		690		-		690		-
Foreign government securities		113,256		(858)		109,953		(6,192)		223,209		(7,050)
Foreign corporate securities		105,551		(1,260)		121,710		(7,879)		227,261		(9,139)
Total fixed maturity securities	$	759,174	$	(8,539)	$	781,202	$	(36,945)	$	1,540,376	$	(45,484)
Total
Securities where an allowance for credit loss was recorded
Total fixed maturity securities - available for sale

Duration of Unrealized Loss at December 31, 2019 By Maturity

Less than 12 months

Greater than 12 months

Total

Gross

Gross

Gross

Market

Unrealized

Market

Unrealized

Market

Unrealized
(Dollars in thousands)
Value

Depreciation

Value

Depreciation

Value

Depreciation
Fixed maturity securities

Due in one year or less
$
34,542

$
(1,067)

$
188,755

$
(6,411)

$
223,297

$
(7,478)
Due in one year through five years

226,521

(2,554)

357,728

(11,562)

584,249

(14,116)
Due in five years through ten years

251,967

(3,292)

43,129

(6,785)

295,096

(10,077)
Due after ten years

54,347

(570)

81,028

(11,460)

135,375

(12,030)
Asset-backed securities

159,695

(887)

76,351

(422)

236,046

(1,309)
Mortgage-backed securities

32,102

(169)

34,211

(305)

66,313

(474)
Total fixed maturity securities
$
759,174

$
(8,539)

$
781,202

$
(36,945)

$
1,540,376

$
(45,484)
(Some amounts may not reconcile due to rounding.)


	Duration of Unrealized Loss at December 31, 2022 By Maturity
	Less than 12 months				Greater than 12 months				Total
(Dollars in millions)	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
Fixed maturity securities - available for sale
Due in one year or less	$	463	$	(8)	$	29	$	(4)	$	491	$	(11)
Due in one year through five years	2,020		(143)		936		(107)		2,956		(250)
Due in five years through ten years	1,162		(148)		395		(98)		1,557		(246)
Due after ten years	439		(50)		262		(64)		701		(114)
Asset-backed securities	3,120		(138)		436		(27)		3,556		(165)
Mortgage-backed securities	1,318		(105)		641		(122)		1,959		(226)
Total	$	8,522	$	(591)	$	2,698	$	(421)	$	11,220	$	(1,012)
Securities where an allowance for credit loss was recorded	2		(1)		—		—		2		(1)
Total fixed maturity securities - available for sale	$	8,524	$	(591)	$	2,698	$	(421)	$	11,222	$	(1,013)

(Some amounts may not reconcile due to rounding.)

The aggregate ~~market~~fair value and gross unrealized losses related to ~~investments~~fixed maturity securities - available for sale in an unrealized loss position at December 31, ~~2019~~2022 were $~~1,540,376 thousand~~$11.2 billion and $~~45,484 thousand,~~$1.0 billion, respectively. The ~~market~~fair value of securities for the single issuer (the United States government) whose securities comprised the largest unrealized loss position at December 31, ~~2019,~~2022, did not exceed ~~0.2%~~4.3% of the overall ~~market~~fair value of the Company’s fixed maturity ~~securities.~~securities available for sale. The fair value of the securities for the issuer with the second largest unrealized loss comprised less than 0.6% of the Company’s fixed maturity securities available for sale. In addition, as indicated on the above table, there was no significant concentration of unrealized losses in any one market sector. The $~~8,539 thousand~~$591 million of unrealized losses related to fixed maturity securities that have been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate securities, foreign government securities, asset backed securities and agency residential mortgage backed securities. Of these unrealized losses, $~~5,645 thousand~~$520 million were related to securities that were rated investment grade by at least one nationally recognized ~~statistical~~ rating agency. The $~~36,945 thousand~~$421 million of unrealized losses related to fixed maturity securities available for sale in an unrealized loss position for more than one year related primarily to domestic and foreign corporate securities ~~and foreign government~~as well as agency residential mortgage-backed securities. Of these unrealized

F-17

Table of Contents

losses, $~~16,976 thousand~~$392 million were related to securities that were rated investment grade by at least

F-18

one nationally recognized ~~statistical~~ rating agency. ~~There was no~~ ~~gross unrealized depreciation for mortgage-backed securities related to sub-prime and alt-A loans.~~ In all instances, there were no projected cash flow shortfalls to recover the full book value of the investments and the related interest obligations. The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments.

The components of net investment income are presented in the ~~tables~~table below for the periods indicated:

	Years Ended December 31,
(Dollars in thousands)	2020		2019		2018
	Years Ended December 31,									Years Ended December 31,
(Dollars in millions)							(Dollars in millions)	2023	2022		2021
Fixed maturities	$	305,399	$	273,122	$	201,108
Equity securities		11,466		10,782		14,909
Short-term investments and cash		2,978		10,231		7,715
Other invested assets
Limited partnerships
Limited partnerships
Limited partnerships		48,899		43,316		61,645
Dividends from preferred shares of affiliate		31,032		31,031		31,032
Other		1,699		14,117		17,825
Gross investment income before adjustments		401,473		382,599		334,234
Funds held interest income (expense)		5,705		6,459		5,188
Interest income from Parent		5,154		211		4,085
Gross investment income		412,332		389,269		343,507
Investment expenses		(36,426)		(33,058)		(29,126)
Net investment income	$	375,906	$	356,211	$	314,381

(Some amounts may not reconcile due to rounding.)

(Some amounts may not reconcile due to rounding.)

The Company records results from limited partnership investments on the equity method of accounting with changes in value reported through net investment income. The net investment income from limited partnerships is dependent upon the Company’s share of the net asset values of interests underlying each limited partnership. Due to the timing of receiving financial information from these partnerships, the results are generally reported on a one month or quarter lag. If the Company determines there has been a significant decline in value of a limited partnership during this lag period, a loss will be recorded in the period in which the Company identifies the decline.

The Company had contractual commitments to invest up to an additional ~~$1,187,996~~ ~~thousand~~$1.0 billion in limited partnerships and private placement loans at December 31, ~~2020.~~2023. These commitments will be funded when called in accordance with the partnership and loan agreements, which have investment periods that expire, unless extended, through ~~2026~~.

2027.

During the fourth quarter of 2022, the Company entered into COLI policies, which are invested in debt and equity securities. The ~~Company participates in a private placement liquidity sweep facility (“~~COLI policies are carried within other invested assets at the ~~facility”). The primary purpose~~policy cash surrender value of ~~the facility is to enhance the Company’s return on its short-term investments~~$1.3 billion and ~~cash positions. The facility invests in high quality, short-duration securities and permits daily liquidity. The Company consolidates its participation in the facility. As~~$939 million as of December 31, ~~2020, the market value of investments in the facility consolidated within the Company’s balance sheets was $223,815~~ ~~thousand.~~

2023 and December 31, 2022, respectively.

Other invested assets, at fair value, as of December 31, ~~2020~~2023 and December 31, ~~2019,~~2022, were comprised of preferred shares held in Preferred Holdings, a wholly-owned subsidiary of Group.

Variable Interest Entities

The Company is engaged with various special purpose entities and other entities that are deemed to be VIEs primarily as an ~~affiliated company.~~

investor through normal investment activities but also as an investment manager. A VIE is an entity that either has investors that lack certain essential characteristics of a controlling financial interest, such as simple majority kick-out rights, or lacks sufficient funds to finance its own activities without financial support provided by other entities. The Company performs ongoing qualitative assessments of its VIEs to determine whether the Company has a controlling financial interest in the VIE and therefore is the primary beneficiary. The Company is deemed to have a controlling financial interest when it has both the ability to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. Based on the Company’s assessment, if it determines it is the primary beneficiary, the Company consolidates the VIE in the Company’s Consolidated Financial Statements. As of December 31, 2023 and 2022, the Company did not hold any securities for which it is the primary beneficiary.

F-19

The Company, through normal investment activities, makes passive investments in general and limited partnerships and other alternative investments. For these non-consolidated VIEs, the Company has determined it is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic performance of the

F-18

Table of Contents

investments. The Company’s maximum exposure to loss as of December 31, 2023 and 2022 is limited to the total carrying value of $3.3 billion and $2.8 billion, respectively, which are included in general and limited partnerships, COLI policies and other alternative investments in other invested assets in the Company's consolidated balance sheets.

As of December 31, 2023, the Company has outstanding commitments totaling $972 million whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. These investments are generally of a passive nature in that the Company does not take an active role in management.

In addition, the Company makes passive investments in structured securities issued by VIEs for which the Company is not the manager. These investments are included in asset-backed securities, which includes collateralized loan obligations and are classified as fixed maturities - available for sale. The Company has not provided financial or other support with respect to these investments other than its original investment. For these investments, the Company determined it is not the primary beneficiary due to the relative size of the Company’s investment in comparison to the principal amount of the structured securities issued by the VIEs, the level of credit subordination which reduces the Company’s obligation to absorb losses or right to receive benefits and the Company’s inability to direct the activities that most significantly impact the economic performance of the VIEs. The Company’s maximum exposure to loss on these investments is limited to the amount of the Company’s investment.

The components of net ~~realized capital~~ gains (losses) on investments are presented in the table below for the periods indicated:

Years Ended December 31,
(Dollars in thousands)
2020

2019

2018
Fixed maturity securities, market value:

Allowances for credit losses
$
(1,566)

$
-

$
-
Other-than-temporary impairments

-

(19,643)

(6,164)
Gains (losses) from sales

(32,614)

7,571

933
Fixed maturity securities, fair value:

Gains (losses) from sales

(2,863)

355

(1,799)
Gains (losses) from fair value adjustments

1,944

1,808

1,506
Equity securities, fair value:

Gains (losses) from sales

(7,931)

4,144

(32,092)
Gains (losses) from fair value adjustments

276,093

153,728

(59,409)
Other invested assets

1,705

6,003

1,815
Other invested assets, fair value:

Gains (losses) from fair value adjustments

(186,102)

265,245

(90,136)
Short-term investment gains (losses)

1,138

156

(10)
Total net realized capital gains (losses)
$
49,804

$
419,367

$
(185,356)


	Years Ended December 31,
(Dollars in millions)	2023		2022		2021
Fixed maturity securities:
Allowances for credit losses	$	(1)	$	(27)	$	(26)
Net realized gains (losses) from dispositions	(192)		(79)		8
Gains (losses) from fair value adjustments	—		—		—
Equity securities:
Net realized gains (losses) from dispositions	8		117		24
Gains (losses) from fair value adjustments	(4)		(447)		254
Other invested assets	—		13		6
Other invested assets, fair value:
Gains (losses) from fair value adjustments	9		(558)		234
Short-term investment gains (losses)	—		—		—
Total net gains (losses) on investments	$	(180)	$	(982)	$	501

Roll Forward of Allowance for Credit Losses

Twelve Months Ended December 31, 2020

Foreign

Foreign

Corporate

Government

Corporate

Securities

Securities

Securities

Total

Beginning Balance

$
-

$
-

$
-

$
-
Credit losses on securities where credit

losses were not previously recorded

(21,829)

(70)

(561)

(22,460)
Increases in allowance on previously

impaired securities

(5,909)

-

(211)

(6,120)
Decreases in allowance on previously

impaired securities

1,824

-

282

2,106
Reduction in allowance due to disposals

24,709

70

129

24,908

Balance as of December 31, 2020

$
(1,205)

$
-

$
(361)

$
(1,566)
(Some amounts may not reconcile due to rounding.)

The ~~Company recorded as net realized capital gains (losses) in~~following tables provide a roll forward of the ~~consolidated statements~~Company’s beginning and ending balance of ~~operations and comprehensive income (loss) fair value re-measurements, allowances~~allowance for credit losses ~~per ASU 2016-13 and write-downs in~~for the ~~value~~periods indicated:


	Roll Forward of Allowance for Credit Losses - Fixed Maturities - Available for Sale
	Twelve Months Ended December 31, 2023
	Corporate Securities		Asset-Backed Securities		Foreign Corporate Securities		Total
(Dollars in millions)
Balance, beginning of period	$	(45)	$	—	$	(1)	$	(46)
Credit losses on securities where credit losses were not previously recorded	(23)		—		—		(23)
Increases in allowance on previously impaired securities	(1)		—		—		(1)
Decreases in allowance on previously impaired securities	—		—		—		—
Reduction in allowance due to disposals	21		—		1		22
Balance, end of period	$	(47)	$	—	$	—	$	(48)

(Some amounts may not reconcile due to rounding.)

F-19

Table of ~~securities deemed~~Contents


	Roll Forward of Allowance for Credit Losses - Fixed Maturities - Held to Maturity
	Twelve Months Ended December 31, 2023
	Corporate Securities		Asset-Backed Securities		Foreign Corporate Securities		Total
(Dollars in millions)
Balance, beginning of period	$	(2)	$	(6)	$	(1)	$	(9)
Credit losses on securities where credit losses were not previously recorded	—		—		—		—
Increases in allowance on previously impaired securities	—		—		—		—
Decreases in allowance on previously impaired securities	—		—		—		—
Reduction in allowance due to disposals	—		1		—		1
Balance, end of period	$	(2)	$	(5)	$	(1)	$	(8)

(Some amounts may not reconcile due to be impaired on an other-than-temporary basis in prior years as displayed in the table above. The Company had no other-than-temporary impaired securities where the impairment had both a credit and non-credit component.

rounding.)

F-20


	Roll Forward of Allowance for Credit Losses - Fixed Maturities - Available for Sale
	Twelve Months Ended December 31, 2022
	Corporate Securities		Asset-Backed Securities		Foreign Corporate Securities		Total
(Dollars in millions)
Balance, beginning of period	$	(19)	$	(8)	$	—	$	(27)
Credit losses on securities where credit losses were not previously recorded	(11)		—		(1)		(12)
Increases in allowance on previously impaired securities	(20)		—		—		(21)
Decreases in allowance on previously impaired securities	—		—		—		—
Reduction in allowance due to disposals	6		8		1		14
Balance, end of period	$	(45)	$	—	$	(1)	$	(46)

(Some amounts may not reconcile due to rounding.)


	Roll Forward of Allowance for Credit Losses - Fixed Maturities - Held to Maturity
	Twelve Months Ended December 31, 2022
	Corporate Securities		Asset-Backed Securities		Foreign Corporate Securities		Total
(Dollars in millions)
Balance, beginning of period	$	—	$	—	$	—	$	—
Credit losses on securities where credit losses were not previously recorded	(2)		(6)		(1)		(9)
Increases in allowance on previously impaired securities	—		—		—		—
Decreases in allowance on previously impaired securities	—		—		—		—
Reduction in allowance due to disposals	—		—		—		—
Balance, end of period	$	(2)	$	(6)	$	(1)	$	(9)

(Some amounts may not reconcile due to rounding.)

The proceeds and split between gross gains and losses from sales of fixed maturity securities - available for sale and equity securities, are presented in the table below for the periods indicated:


	Years Ended December 31,
(Dollars in millions)	2023		2022		2021
Proceeds from sales of fixed maturity securities - available for sale	$	2,546	$	2,645	$	961
Gross gains from dispositions	12		9		33
Gross losses from dispositions	(204)		(88)		(24)

Proceeds from sales of equity securities	$	126	$	2,203	$	862
Gross gains from dispositions	8		165		39
Gross losses from dispositions	—		(48)		(15)

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Table of Contents

Years Ended December 31,
(Dollars in thousands)
2020

2019

2018
Proceeds from sales of fixed maturity securities
$
631,285

$
2,403,786

$
793,119
Gross gains from sales

24,177

25,076

15,349
Gross losses from sales

(59,654)

(17,150)

(16,215)

Proceeds from sales of equity securities
$
375,112

$
283,707

$
1,029,920
Gross gains from sales

37,403

14,270

25,160
Gross losses from sales

(45,334)

(10,126)

(57,252)

Securities with a carrying value amount of $~~1,617,928 thousand~~$1.4 billion at December 31, ~~2020,~~2023, were on deposit with or regulated by various state or governmental insurance departments in compliance with insurance laws. See Note 10.

3.FAIR VALUE

GAAP guidance regarding fair value measurements address how companies should measure fair value when they are required to use fair value measures for recognition or disclosure purposes under GAAP and provides a common definition of fair value to be used throughout GAAP. It defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly fashion between market participants at the measurement date. In addition, it establishes a three-level valuation hierarchy for the disclosure of fair value measurements. The valuation hierarchy is based on the transparency of inputs to the valuation of an asset or liability. The level in the hierarchy within which a given fair value measurement falls is determined based on the lowest level input that is significant to the measurement, with Level 1 being the highest priority and Level 3 being the lowest priority.

The levels in the hierarchy are defined as follows:

Level 1: Inputs to the valuation methodology are observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in an active market;

Level 2: Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument;

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The Company’s fixed maturity and equity securities are managed both internally and on an external basis by independent, professional investment managers using portfolio guidelines approved by the Company. The Company obtains prices from nationally recognized pricing services. These services seek to utilize market data and observations in their evaluation process. These services use pricing applications that vary by asset class and incorporate available market information and when fixed maturity securities do not trade on a daily basis the services will apply available information through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing. In addition, they use model processes, such as the Option Adjusted Spread model to develop prepayment and interest rate scenarios for securities that have prepayment features.

The Company does not make any changes to prices received from the pricing services. In addition, the Company has procedures in place to review the reasonableness of the prices from the service providers and may request verification of the prices. The Company also continually performs quantitative and qualitative analysis of prices, including but not limited to initial and ongoing review of pricing methodologies, review of prices obtained from pricing services and third party investment asset managers, review of pricing statistics and trends, and comparison of prices for certain securities with a secondary price source for reasonableness. No material variances were noted during these price validation procedures. In limited situations, where financial markets are inactive or illiquid, the Company may use its own assumptions about future cash flows and risk-adjusted discount rates to determine fair value.

At December 31, 2023, $2.0 billion of fixed maturities were fair valued using unobservable inputs. The majority of these fixed maturities were valued by investment managers’ valuation committees and many of these fair values were substantiated by valuations from independent third parties. The Company has procedures in place to evaluate these independent third party valuations. At December 31, 2022, $1.7 billion of fixed maturities were fair valued using unobservable inputs.

Equity securities denominated in U.S. currency with quoted prices in active markets for identical assets are categorized as Level 1 since the quoted prices are directly observable. Equity securities traded on foreign exchanges are categorized as Level 2 due to the added input of a foreign exchange conversion rate to determine fair value. The Company uses foreign currency exchange rates published by a nationally recognized source.

Fixed maturity securities listed in the tables have been categorized as Level 2, since a particular security may not have traded but the pricing services are able to use valuation models with observable market inputs such as interest rate yield curves and prices for similar fixed maturity securities in terms of issuer, maturity and seniority. For foreign government securities and foreign corporate securities, the fair values provided by the third party pricing services in local currencies, and where applicable, are converted to U.S. dollars using currency exchange rates from nationally recognized sources.

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Table of Contents

In addition, some of the fixed maturities with fair values categorized as Level 3 result when prices are not available from the nationally recognized pricing services and are obtained from investment managers and are derived using unobservable inputs. The Company will value the securities with unobservable inputs using comparable market information or receive fair values from investment managers. The investment managers may obtain non-binding price quotes for the securities from brokers. The single broker quotes are provided by market makers or broker-dealers who are recognized as market participants in the markets in which they are providing the quotes. The prices received from brokers are reviewed for reasonableness by the third party asset managers and the Company. If the broker quotes are for foreign denominated securities, the quotes are converted to U.S. dollars using currency exchange rates from nationally recognized sources.

The fixed maturities with fair values categorized as Level 3 result when prices are not available from the nationally recognized pricing services.

The composition and valuation inputs for the presented fixed maturities categories Level 1 and Level 2 are as follows:

•U.S. Treasury securities and obligations of U.S. government agencies and corporations are primarily comprised of U.S. Treasury bonds and the fair value is based on observable market inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields;

•Obligations of U.S. states and political subdivisions are comprised of state and municipal bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads;

•Corporate securities are primarily comprised of U.S. corporate and public utility bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads;

•Asset-backed and mortgage-backed securities fair values are based on observable inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields and cash flow models using observable inputs such as prepayment speeds, collateral performance and default spreads;

•Foreign government securities are comprised of global non-U.S. sovereign bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source;

•Foreign corporate securities are comprised of global non-U.S. corporate bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source.

Other invested assets, at fair value, were categorized as Level 3 at December 31, 2023 and December 31, 2022, since it represented a privately placed convertible preferred stock issued by an affiliate. The stock was received in exchange for shares of the Company’s parent. The 25 year redeemable, convertible preferred stock with a 1.75% coupon is valued using a pricing model. The pricing model includes observable inputs such as the U.S. Treasury yield curve rate T note constant maturity 10 year and the swap rate on the Company’s June 1, 2044, 4.868% senior notes, with adjustments to reflect the Company’s own assumptions about the inputs that market participants would use in pricing the asset.

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Table of Contents

The following table presents the fair value measurement levels for all assets, which the Company has recorded at fair value as of the period indicated:


			Fair Value Measurement Using:
(Dollars in millions)	December 31, 2023		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Fixed maturities - available for sale
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	247	$	—	$	247	$	—
Obligations of U.S. states and political subdivisions	128		—		128		—
Corporate securities	4,289		—		3,617		672
Asset-backed securities	5,282		—		3,977		1,305
Mortgage-backed securities
Commercial	522		—		522		—
Agency residential	2,435		—		2,435		—
Non-agency residential	441		—		441		—
Foreign government securities	835		—		835		—
Foreign corporate securities	1,753		—		1,737		16
Total fixed maturities - available for sale	15,932		—		13,939		1,993

Equity securities, fair value	91		70		21		—
Other invested assets, fair value	1,481		—		—		1,481

(Some amounts may not reconcile due to rounding.)


			Fair Value Measurement Using:
(Dollars in millions)	December 31, 2022		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Fixed maturities - available for sale
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	535	$	—	$	535	$	—
Obligations of U.S. states and political subdivisions	413		—		413		—
Corporate securities	3,561		—		2,846		715
Asset-backed securities	3,951		—		2,957		994
Mortgage-backed securities
Commercial	509		—		509		—
Agency residential	1,628		—		1,628		—
Non-agency residential	3		—		3		—
Foreign government securities	637		—		637		—
Foreign corporate securities	1,433		—		1,417		16
Total fixed maturities - available for sale	12,671		—		10,946		1,725

Equity securities, fair value	194		132		63		—
Other invested assets, fair value	1,472		—		—		1,472

(Some amounts may not reconcile due to rounding.)

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Table of Contents

The following table presents the activity under Level 3, fair value measurements using significant unobservable inputs for fixed maturities - available for sale, for the periods indicated:


	Total Fixed Maturities - Available for Sale
	December 31, 2023										December 31, 2022
(Dollars in millions)	Corporate Securities		Asset-Backed Securities		CMBS		Foreign Corporate		Total		Corporate Securities		Asset-Backed Securities		CMBS		Foreign Corporate		Total
Beginning balance fixed maturities	$	715	$	994	$	—	$	16	$	1,725	$	730	$	1,251	$	—	$	16	$	1,997
Total gains or (losses) (realized/unrealized) Included in earnings (or changes in net assets)	4		—		—		—		4		(24)		—		—		—		(24)
Included in other comprehensive income (loss)	(2)		6		—		—		4		3		(35)		—		(4)		(36)
Purchases, issuances and settlements	(45)		305		—		—		260		40		513		6		8		567
Transfers in (out) of Level 3 and reclassification of securities in/(out) investment categories	—		—		—		—		—		(35)		(735)		(6)		(4)		(779)
Ending balance	$	672	$	1,305	$	—	$	16	$	1,993	$	715	$	994	$	—	$	16	$	1,725
The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	$	9	$	—	$	—	$	—	$	9	$	(23)	$	8	$	—	$	—	$	(15)

(Some amounts may not reconcile due to rounding.)

There were no transfers of assets in/(out) Level 3 during 2023.

The $779 million shown as transfers in/(out) of Level 3 and reclassification of securities in/(out) of investment categories for the year ended December 31, 2022 related mainly to previously designated Level 3 securities that the Company had reclassified from “fixed maturities - available for sale” to “fixed maturities - held to maturity” during 2022. As “fixed maturities - held to maturity" are carried at amortized cost, net of credit allowances rather than at fair value as “fixed maturities - available for sale”, these securities are no longer included within the fair value hierarchy table or in the roll forward of Level 3 securities. The fair values of these securities are determined in a similar manner as the Company’s fixed maturity securities available for sale as described above. The fair values of these securities incorporate the use of significant unobservable inputs and therefore are classified as Level 3 within the fair value hierarchy as of December 31, 2022.

Financial Instruments Disclosed, But Not Reported, at Fair Value

Certain financial instruments disclosed, but not reported, at fair value are excluded from the fair value hierarchy tables above. Fair values of fixed maturity securities - held to maturity, senior notes and long-term subordinated notes can be found within Notes 2, 7 and 8, respectively. Fair values of long-term notes receivable from affiliates can be found within Note 15. Short-term investments are stated at cost, which approximates fair value. See Note 1.

Exempt from Fair Value Disclosure Requirements

Certain financial instruments are exempt from the requirements for fair value disclosure, such as limited partnerships accounted for under the equity method and pension and other postretirement obligations. The Company’s investment in COLI policies are recorded at their cash surrender value and are therefore not required to be included in the tables above. See Note 1 of the Notes to these Consolidated Financial Statements for details of investments in COLI policies.

In addition, $274 million and $292 million of investments within other invested assets on the consolidated balance sheets as of December 31, 2023 and December 31, 2022, respectively, are not included within the fair value hierarchy tables as the assets are measured at net asset value (NAV) as a practical expedient to determine fair value.

F-24

Table of Contents3.

4.RESERVES FOR LOSSES AND LAE

~~Activity in~~

The following table provides a roll forward of the ~~reserve~~Company’s beginning and ending reserves for losses and LAE and is summarized for the periods indicated:

	At December 31,
(Dollars in thousands)	2020		2019		2018
	At December 31,									At December 31,
(Dollars in millions)							(Dollars in millions)	2023	2022		2021
Gross reserves beginning of period	$	10,209,519	$	10,167,018	$	9,343,028
Less reinsurance recoverables		(4,215,348)		(4,697,543)		(5,727,268)
Less reinsurance recoverables on unpaid losses
Net reserves beginning of period		5,994,171		5,469,475		3,615,760

Incurred related to:
Incurred related to:
Incurred related to:
Current year
Current year
Current year		4,407,795		3,784,771		4,252,220
Prior years		200,349		44,351		558,798
Total incurred losses and LAE		4,608,144		3,829,122		4,811,018

Paid related to:
Paid related to:
Paid related to:
Current year
Current year
Current year		1,901,971		1,885,443		1,524,635
Prior years		1,020,761		1,431,336		1,408,256
Total paid losses and LAE		2,922,731		3,316,778		2,932,891

Foreign exchange/translation adjustment		23,892		12,352		(24,412)
Foreign exchange/translation adjustment
Foreign exchange/translation adjustment

Net reserves end of period		7,703,476		5,994,171		5,469,475
Plus reinsurance recoverables		3,951,474		4,215,348		4,697,543
Net reserves end of period
Net reserves end of period
Plus reinsurance recoverables on unpaid losses
Gross reserves end of period	$	11,654,950	$	10,209,519	$	10,167,018

(Some amounts may not reconcile due to rounding.)

(Some amounts may not reconcile due to rounding.)

Current year incurred losses were $~~4,407,795 thousand, $3,784,771 thousand~~$5.6 billion, $5.8 billion and $~~4,252,220 thousand at~~$5.4 billion for the years ended December 31, ~~2020, 2019~~2023, 2022 and ~~2018,~~2021, respectively. The decrease in current year incurred losses in 2023 compared to 2022 primarily related to a decrease of $642 million in current year catastrophe losses, partially offset by an increase of $426 million in current year attritional losses resulting from the impact of the increase in premiums earned and changes in the mix of business. The increase in current year incurred losses in ~~2020~~2022 compared to ~~2019~~2021 primarily related to an increase of $44 million in current year catastrophe losses and an increase of $389 million in current year attritional losses. The increase in current year attritional losses was mainly due to the growth in premiums earned and $25 million of losses due to the Russia/Ukraine conflict.

The recent emergence of the Middle East war and the ongoing war in the Ukraine are evolving events. Economic and legal sanctions have been levied against Russia, specific named individuals and entities connected to the Russian government, as well as businesses located in the Russian Federation and/or owned by Russian nationals in numerous countries, including the United States. The significant political and economic uncertainty surrounding these wars and associated sanctions have impacted economic and investment markets both within Russia, Ukraine, the Middle East region, and around the world.

Incurred prior years’ reserves decreased by $21 million in 2023 and increased by $7 million and $5 million in 2022 and 2021, respectively. The net favorable development on prior year reserves of $21 million in 2023 is comprised of $351 million of favorable development on prior years attritional losses for reinsurance lines, mainly related to mortgage and short-tail lines of business, which is offset by $352 million of unfavorable development on prior years attritional losses for insurance lines, mainly related to casualty lines for accident years from 2016 through 2019. The prior year development also includes $37 million of commutations from stop loss agreements between Everest Re and Bermuda Re that are embedded within the Reinsurance Segment’s net favorable development on prior year attritional losses. Additionally, there was $22 million of favorable development on prior year catastrophe losses. The 2022 prior year development was primarily due to $~~154,812 thousand~~$113 million of ~~incurred losses due to COVID-19 as well as~~strengthening of asbestos reserves mitigated primarily by reserve releases from the ~~impact of the increase in premiums earned.~~

~~Incurred prior years’ reserves increased by $200,349~~ ~~thousand, $44,351~~ ~~thousand and $558,798~~ ~~thousand in 2020, 2019 and 2018 respectively.~~reinsurance segment. The increase for ~~2020 primarily~~2021 related mainly to ~~higher ultimate loss estimates for long-tail~~increases in insurance casualty ~~business in the reinsurance segment for accident years 2015 to 2018, notably general liability, professional lines, and auto liability. The reserve charge also includes actions on non-CAT~~

reserves.

F-21

~~property lines, primarily for the 2017 to 2019 accident years and driven by a few large losses to aggregate programs.~~

~~The increase for 2019 was mainly due to adverse development on prior years catastrophe losses.~~

~~The increase for 2018 was mainly due to $553,036~~ thousand of adverse development on prior years catastrophe losses, primarily related to Hurricanes Harvey, Irma and Maria, as well as the 2017 California wildfires. The increase in loss estimates for Hurricanes Harvey, Irma and Maria was mostly driven by re-opened claims, loss inflation from higher than expected loss adjustment expenses and in particular, their impact on aggregate covers.

The following is information about incurred and paid claims development as of December 31, ~~2020,~~2023, net of reinsurance, as well as cumulative claim frequency and the total of incurred but not reported liabilities (IBNR) plus expected

F-25

Table of Contents

development on reported claims included within the net incurred claims amounts. Each of the Company’s financial reporting segments has been disaggregated into casualty and property business. The casualty and property segregation results in groups that have homogeneous loss development characteristics and are large enough to represent credible trends. Generally, casualty claims take longer to be reported and settled, resulting in longer payout patterns and increased volatility. Property claims on the other hand, tend to be reported and settled quicker and therefore tend to exhibit less volatility. The property business is more exposed to catastrophe losses, which can result in year over year fluctuations in incurred claims depending on the frequency and severity of catastrophes claims in any one accident year.

The information about incurred and paid claims development for the years ended December 31, ~~2012~~2014 to December 31, ~~2019~~2022 is presented as supplementary information.

These tables present nine years of incurred and paid claims development as it is impracticable to retrospectively create the tables for ten years. For the reinsurance groups, for the years prior to 2012, the total of IBNR plus expected development on reported claims was not prepared on an accident year basis. The Company calculated these IBNR amounts in the aggregate for each business unit in total as of prior year end points in time. While business written in the United States would have been allocated to accident year for regulatory reporting purposes, business written outside of the United States would not have been similarly allocated. Attempting to allocate the non-U.S. business IBNR reserves to accident year currently for older year end valuations would require making assumptions and estimates which may not be in line with assumptions that would have been made at the time. A similar situation applies to insurance where the accumulation of the business lines reported in the regulatory filings are not consistent with the breakout of the tables presented below. As a result of not being able to present the information prior to 2012, prospectively an additional year will be added to the tables each reporting year until a ten year table is presented.

The Cumulative Number of Reported Claims is shown only for Insurance Casualty as it is ~~impracticable~~impractical to provide the information for the remaining groups. The reinsurance groups each include pro rata contracts for which ceding companies provide only summary information via a bordereau. This summary information does not include the number of reported claims underlying the paid and reported losses. Therefore, it is not possible to provide this information. The Insurance Property group includes Accident & Health insurance business. This business is written via a master contract and individual claim counts are not provided. This business represents a significant enough portion of the business in the Insurance Property group so that including the number of reported claims for the remaining business would distort any analytics performed on the group.

The Cumulative Number of Reported Claims shown for the Insurance Casualty is determined by claim and line of business. For example, a claim event with three claimants in the same line of business is a single claim. However, a claim event with a single claimant that spans two lines of business contributes two claims. Cessions under affiliated quota share agreements reduce net losses but do not impact claim counts.

Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Liability for Unpaid Claims and Claim Adjustment Expenses

The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated statement of financial position is as follows.


	At December 31,
	2023
(Dollars in millions)
Net outstanding liabilities
Reinsurance Casualty	$	5,433
Reinsurance Property	3,161
Insurance Casualty	3,310
Insurance Property	493
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance	12,396

Reinsurance recoverable on unpaid claims
Reinsurance Casualty	492
Reinsurance Property	816
Insurance Casualty	1,695
Insurance Property	179
Total reinsurance recoverable on unpaid claims	3,182

Unallocated claims adjustment expenses	184
Other	33
	218

Total gross liability for unpaid claims and claim adjustment expense	$	15,796

(Some amounts may not reconcile due to rounding.)

F-26

Table of Contents

The following tables present the incurred loss and ALAE and the paid loss and ALAE, net of reinsurance for casualty and property, as well as the average annual percentage payout of incurred claims by age, net of reinsurance for each of our disclosed lines of business.

F-22

Reinsurance - Casualty Business


																					At December 31, 2023
																					Total of IBNR Liabilities Plus Expected Development on Reported Claims	Cumulative Number of Reported Claims
	Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31,
	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
Accident Year	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
(Dollars in millions)
2014	$	341	$	327	$	258	$	229	$	229	$	229	$	229	$	229	$	229	$	229	—	N/A
2015			294		250		238		238		238		238		238		238		238		6	N/A
2016					243		239		239		239		239		239		239		239		18	N/A
2017							198		204		204		204		204		204		204		50	N/A
2018									814		799		845		867		919		1,029		115	N/A
2019											1,009		1,057		1,058		1,073		1,109		285	N/A
2020													1,085		1,057		1,026		1,017		373	N/A
2021															1,358		1,351		1,309		693	N/A
2022																	1,331		1,290		912	N/A
2023																			1,634		1,283	N/A
																			$	8,299

(Some amounts may not reconcile due to rounding.)


	Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31,
	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
Accident Year	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
(Dollars in millions)
2014	$	15	$	36	$	77	$	107	$	145	$	175	$	184	$	188	$	211	$	216
2015			16		39		86		147		168		188		194		209		216
2016					18		54		89		143		161		187		214		220
2017							27		87		110		123		150		180		187
2018									132		200		318		415		473		510
2019											165		265		381		487		531
2020													146		237		334		447
2021															156		230		377
2022																	105		222
2023																			175
																			$	3,101
All outstanding liabilities prior to 2014, net of reinsurance																			235
Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	5,433

(Some amounts may not reconcile due to rounding.)


	Average Annual Percentage Payout of Incurred Loss by Age, Net of Reinsurance (unaudited)
Years	1		2		3		4		5		6		7		8		9		10
Casualty	11.5	%	8.9	%	11.6	%	11.7	%	6.8	%	7.3	%	5.5	%	3.6	%	6.3	%	2.0	%

F-27

Table of Contents

Reinsurance –- Property Business

At December 31, 2023
Total of
IBNR Liabilities
Plus Expected
Development
on Reported Claims Cumulative
Number of
Reported
Claims
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance
Years Ended December 31,
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Accident
Year (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
(Dollars in millions)
2014 $ 715 $ 527 $ 369 $ 339 $ 340 $ 340 $ 340 $ 340 $ 340 $ 340 3 N/A
2015 640 341 311 311 311 311 311 311 311 1 N/A
2016 612 631 632 628 627 627 627 628 2 N/A
2017 1,262 1,847 2,015 2,109 2,162 2,200 2,203 2 N/A
2018 2,214 2,103 2,093 2,041 2,011 1,982 (1) N/A
2019 1,658 1,664 1,591 1,486 1,479 (7) N/A
2020 1,843 1,887 1,827 1,805 23 N/A
2021 2,140 2,126 2,068 87 N/A
2022 2,535 2,223 549 N/A
2023 1,958 980 N/A
$ 14,996

(Some amounts may not reconcile due to rounding.)

Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
Years Ended December 31,
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Accident
Year (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
(Dollars in millions)
2014 $ 145 $ 222 $ 273 $ 301 $ 317 $ 319 $ 323 $ 325 $ 332 $ 339
2015 148 213 261 276 282 287 291 300 314
2016 223 475 569 575 580 582 592 603
2017 773 1,529 1,887 2,011 2,105 2,181 2,219
2018 470 1,358 1,652 1,808 1,866 1,909
2019 656 1,016 1,258 1,376 1,472
2020 528 1,100 1,408 1,590
2021 625 1,274 1,634
2022 548 1,209
2023 525
$ 11,815
All outstanding liabilities prior to 2014, net of reinsurance (20)
Liabilities for claims and claim adjustment expenses, net of reinsurance $ 3,161

(Some amounts may not reconcile due to rounding.)

Average Annual Percentage Payout of Incurred Loss by Age, Net of Reinsurance (unaudited)
Years 1 2 3 4 5 6 7 8 9 10
Property 30.9 % 32.8 % 16.2 % 7.2 % 3.9 % 2.4 % 1.6 % 1.7 % 3.3 % 1.9 %

F-28

Table of Contents

Insurance - Casualty Business

																				At December 31, 2020
																				Total of
																				IBNR Liabilities
		Incurred Claims and Allocated Claim Adjustment Expenses, Net of reinsurance																		Plus Expected
		Years Ended December 31,																		Development	Cumulative
		2012			2013		2014		2015		2016		2017		2018		2019		2020	on Reported	Number of
																																			At December 31, 2023																																																																						At December 31, 2023
																																			Total of IBNR Liabilities Plus Expected Development on Reported Claims																																																																					Total of IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
			Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31,
					2014
					2014
					2014
Accident Year		(unaudited)			(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)			Claims	Reported Claims
(Dollars in thousands)
2012	$	374,581		$	268,305	$	175,657	$	183,055	$	189,967	$	192,489	$	192,489	$	192,489	$	192,489	5,251	N/A
2013					178,120		224,394		222,607		229,607		219,107		219,107		219,107		219,107	9,966	N/A
Accident Year
Accident Year
(Dollars in millions)
(Dollars in millions)
(Dollars in millions)
2014
2014
2014							255,906		235,921		258,526		230,089		230,089		230,089		230,089	14,699	N/A		$	238	$	$	239	$		$	241		$			$	255		$		$	255		$			$	255		$			$	256		$			$	256		$			$	256		$			$	256		1				1			24,779				24,779
2015									209,024		250,053		238,770		238,770		238,770		238,770	22,961	N/A	2015							259	259				259			277			277			277			277			277				277			266				266			266				266		269				269			278				278			4			4			26,300					26,300
2016											242,764		240,268		240,268		240,268		240,268	53,538	N/A	2016													351			276			276			279				279			281				281		288				288			287				287		281					281		281					281		—			—			30,606						30,606
2017													198,615		204,376		204,376		204,376	52,439	N/A	2017																					304		237				237			238				238		237					237		236				236			232				232			235				235		—				—		34,567							34,567
2018															776,194		760,762		807,055	256,591	N/A	2018																													645		644				644			666				666			689			689			698				698			793				793		135				135			35,301						35,301
2019																	981,818		1,029,966	577,799	N/A	2019																																				768			756				756			794				794			814				814			996			996		194				194				39,356						39,356
2020																			1,031,905	701,538	N/A	2020																																													817		792				792			793				793			841			841			287				287				38,099					38,099
																		$	4,194,026

(Some amounts may not reconcile due to rounding.)
2021																						2021																																																					1,112						1,112					1,106						457								44,387
2022																						2022																																																													1,039					1,054							450							45,829
2023																						2023																																																																				1,236								620					36,309
																																$

Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance

Years Ended December 31,

2012

2013

2014

2015

2016

2017

2018

2019

2020
Accident Year

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(Dollars in thousands)

2012

$
13,409

$
30,203

$
60,838

$
95,914

$
121,840

$
126,832

$
153,361

$
155,900

$
160,352
2013

12,781

29,008

64,796

98,583

127,230

159,352

180,489

185,773
2014

15,040

35,248

76,829

107,438

144,211

176,451

185,767
2015

15,673

39,048

85,397

147,974

171,247

189,227
2016

17,534

52,958

89,871

147,881

163,012
2017

25,552

83,783

97,788

133,265
2018

121,180

201,861

301,050
2019

155,949

251,999
2020

136,609

$
1,707,054
All outstanding liabilities prior to 2012, net of reinsurance

434,553
Liabilities for claims and claim adjustment expenses, net of reinsurance

$
2,921,525

(Some amounts may not reconcile due to rounding.)

(Some amounts may not reconcile due to rounding.)

Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited)
Years

1

2

3

4

5

6

7

8

9

Casualty

12.2
%

11.0
%

14.3
%

19.3
%

11.6
%

9.9
%

8.9
%

1.9
%

2.3
%


	Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31,
	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
Accident Year	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
(Dollars in millions)
2014	$	20	$	72	$	114	$	144	$	229	$	229	$	250	$	253	$	254	$	255
2015			20		68		117		199		244		259		263		266		270
2016					25		101		276		299		308		313		318		321
2017							23		151		157		217		233		239		243
2018									63		189		271		383		435		476
2019											11		217		350		489		598
2020													82		209		340		448
2021															201		339		521
2022																	222		470
2023																			193
																			$	3,793
All outstanding liabilities prior to 2014, net of reinsurance																			27
Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	3,310

F-23

(Some amounts may not reconcile due to rounding.)


	Average Annual Percentage Payout of Incurred Loss by Age, Net of Reinsurance (unaudited)
Years	1		2		3		4		5		6		7		8		9		10
Casualty	12.1	%	19.7	%	16.7	%	15.0	%	11.1	%	3.6	%	3.2	%	1.1	%	0.9	%	0.2	%

F-29

Table of Contents

~~Reinsurance –~~

Insurance - Property Business

At December 31, 2020

Total of

IBNR Liabilities

Incurred Claims and Allocated Claim Adjustment Expenses, Net of reinsurance

Plus Expected

Years Ended December 31,

Development

Cumulative

2012

2013

2014

2015

2016

2017

2018

2019

2020

on Reported

Number of
Accident Year

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Claims

Reported Claims
(Dollars in thousands)

2012

$
694,850

$
603,498

$
549,946

$
565,581

$
555,562

$
557,723

$
543,215

$
540,256

$
538,697

1,822

N/A
2013

409,477

309,139

267,409

228,629

228,071

227,969

227,969

227,969

853

N/A
2014

603,513

528,498

407,734

378,739

379,860

379,860

379,860

908

N/A
2015

561,942

373,099

347,758

347,758

347,758

347,758

2,305

N/A
2016

639,055

665,589

665,904

662,060

660,691

6,623

N/A
2017

1,291,894

1,876,143

2,044,656

2,138,415

12,396

N/A
2018

2,261,663

2,150,440

2,140,579

57,122

N/A
2019

1,784,412

1,790,026

340,939

N/A
2020

1,903,989

927,203

N/A

$
10,127,985

(Some amounts may not reconcile due to rounding.)

Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance

Years Ended December 31,

2012

2013

2014

2015

2016

2017

2018

2019

2020
Accident Year

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(Dollars in thousands)

2012

$
157,927

$
303,383

$
380,761

$
447,169

$
465,594

$
495,246

$
504,145

$
504,486

$
506,738
2013

139,086

169,750

183,757

199,224

208,135

214,946

217,457

222,290
2014

159,408

250,751

308,906

339,654

353,890

356,600

367,141
2015

161,844

241,406

296,128

313,689

318,938

332,022
2016

238,620

502,419

603,988

627,130

649,604
2017

791,142

1,577,892

1,992,968

2,122,476
2018

501,315

1,402,713

1,731,440
2019

701,324

1,084,988
2020

562,144

$
7,578,843
All outstanding liabilities prior to 2012, net of reinsurance

20,682
Liabilities for claims and claim adjustment expenses, net of reinsurance

$
2,569,824

(Some amounts may not reconcile due to rounding.)

Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited)
Years
1

2

3

4

5

6

7

8

9

Property
33.7
%

32.6
%

16.3
%

6.6
%

3.2
%

3.5
%

1.9
%

0.7
%

0.4
%

~~Insurance – Casualty Business~~

At December 31, 2020

Total of

IBNR Liabilities

Incurred Claims and Allocated Claim Adjustment Expenses, Net of reinsurance

Plus Expected

Years Ended December 31,

Development

Cumulative

2012

2013

2014

2015

2016

2017

2018

2019

2020

on Reported

Number of
Accident Year

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Claims

Reported Claims
(Dollars in thousands)

2012

$
212,023

$
175,030

$
185,371

$
184,659

$
188,273

$
185,810

$
185,809

$
185,861

$
185,862

986

15,780
2013

256,187

228,227

230,748

224,724

194,739

194,748

194,914

194,914

1,283

21,385
2014

238,086

239,091

240,985

255,041

255,166

255,125

255,125

1,550

25,221
2015

259,243

259,563

278,217

278,217

278,388

278,388

1,028

26,996
2016

352,060

276,960

279,684

281,780

281,771

1,944

31,673
2017

304,361

238,006

238,187

237,491

2,293

35,020
2018

645,825

645,109

665,436

219,887

34,884
2019

768,845

757,958

355,225

37,597
2020

819,368

562,143

26,068

$
3,676,311

(Some amounts may not reconcile due to rounding.)

F-24

		Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
		Years Ended December 31,
		2012			2013		2014		2015		2016		2017		2018		2019		2020
																																			At December 31, 2023																																																																			At December 31, 2023
																																			Total of IBNR Liabilities Plus Expected Development on Reported Claims																																																																		Total of IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
			Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31,
					2014
					2014
					2014
Accident Year		(unaudited)			(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
(Dollars in thousands)
2012	$	15,688		$	55,230	$	84,408	$	116,622	$	133,279	$	147,011	$	154,412	$	168,867	$	170,944
2013					17,120		68,588		101,649		129,756		149,775		167,584		182,789		189,215
Accident Year
Accident Year
(Dollars in millions)
(Dollars in millions)
(Dollars in millions)
2014
2014
2014							20,377		71,918		114,199		143,893		229,001		229,608		250,490		$	76	$	$	89	$		$	84	$			$	82		$		$	82		$			$	82		$			$	82		$			$	82		$			$	82		$			$	82		—				—			N/A				N/A
2015									19,962		67,996		116,982		199,532		244,477		260,269	2015							96	93			93			93			93			92			92			95				95			107				107			107				107		103				103			95				95			—			—			N/A					N/A
2016											24,810		101,234		275,801		299,145		308,358	2016												150			186			186			180				180			177				177		175				175			174				174		181					181		181					181		—			—			N/A						N/A
2017													22,808		151,283		157,000		216,893	2017																				233		300				300			303				303		309					309		322				322			332				332			329				329		—				—		N/A							N/A
2018															63,229		189,299		271,737	2018																												382		380				380			392				392			390			390			395				395			402				402		5				5			N/A						N/A
2019																	10,612		216,483	2019																																			350			367				367			359				359			365				365			378			378		7				7				N/A						N/A
2020																			78,760	2020																																												524		523				523			513				513			478			478			24				24				N/A					N/A
																		$	1,963,148
All outstanding liabilities prior to 2012, net of reinsurance																			20,931
Liabilities for claims and claim adjustment expenses, net of reinsurance																		$	1,734,095

(Some amounts may not reconcile due to rounding.)
2021																				2021																																																				557						550					578						31								N/A
2022																				2022																																																												708					711							115							N/A
2023																				2023																																																																			638								164					N/A
																															$

Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited)
Years

1

2

3

4

5

6

7

8

9

Casualty

7.4
%

12.5
%

19.8
%

17.8
%

14.7
%

5.2
%

6.8
%

5.5
%

1.1
%

~~Insurance – Property Business~~

At December 31, 2020

Total of

IBNR Liabilities

Incurred Claims and Allocated Claim Adjustment Expenses, Net of reinsurance

Plus Expected

Years Ended December 31,

Development

Cumulative

2012

2013

2014

2015

2016

2017

2018

2019

2020

on Reported

Number of
Accident Year

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Claims

Reported Claims
(Dollars in thousands)

2012

$
58,483

$
47,228

$
43,423

$
44,867

$
44,297

$
44,105

$
44,150

$
44,098

$
44,097

-

N/A
2013

64,493

56,351

52,176

52,866

52,677

52,668

52,502

52,443

2

N/A
2014

67,660

70,077

67,447

66,645

66,520

66,561

66,561

3

N/A
2015

81,137

75,673

75,830

75,787

75,616

75,666

8

N/A
2016

143,279

169,791

165,078

164,045

164,144

67

N/A
2017

230,638

293,577

297,588

299,199

229

N/A
2018

376,805

373,389

377,079

339

N/A
2019

337,993

349,750

514

N/A
2020

546,870

232,975

N/A

$
1,975,810

(Some amounts may not reconcile due to rounding.)

Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance

Years Ended December 31,

2012

2013

2014

2015

2016

2017

2018

2019

2020
Accident Year

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(Dollars in thousands)

2012

$
26,868

$
44,408

$
42,865

$
44,517

$
44,230

$
44,040

$
44,049

$
44,075

$
44,098
2013

35,201

54,220

52,588

52,849

52,474

52,459

52,467

52,441
2014

40,277

66,436

66,601

65,968

66,449

66,482

66,558
2015

45,422

70,398

75,168

75,192

75,049

75,240
2016

72,264

153,120

169,134

164,445

163,274
2017

161,592

293,417

282,607

296,805
2018

236,430

342,828

368,756
2019

218,339

337,091
2020

263,379

$
1,667,642
All outstanding liabilities prior to 2012, net of reinsurance

33
Liabilities for claims and claim adjustment expenses, net of reinsurance

$
308,201

(Some amounts may not reconcile due to rounding.)

Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited)
Years

1

2

3

4

5

6

7

8

9

Property

55.7
%

36.8
%

3.0
%

1.5
%

1.6
%

1.3
%

0.1
%

-
%

0.1
%

F-25

~~Reconciliation of the Disclosure of Incurred and Paid Claims Development~~(Some amounts may not reconcile due to ~~the Liability for Unpaid Claims and Claim Adjustment Expenses~~

~~The reconciliation of the net incurred and paid claims development tables~~rounding.)


	Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31,
	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
Accident Year	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
(Dollars in millions)
2014	$	45	$	77	$	81	$	81	$	82	$	82	$	82	$	82	$	82	$	82
2015			51		82		91		91		91		94		94		94		95
2016					78		162		180		175		178		180		180		181
2017							164		298		287		305		321		329		329
2018									238		349		376		388		391		396
2019											224		346		357		364		367
2020													271		374		395		453
2021															361		515		537
2022																	390		548
2023																			391
																			$	3,379
All outstanding liabilities prior to 2014, net of reinsurance																			—
Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	493

(Some amounts may not reconcile due to ~~the liability for claims and claim adjustment expenses in the consolidated statement of financial position is as follows.~~

rounding.)

At December 31,

2020
(Dollars in thousands)

Net outstanding liabilities

Reinsurance Casualty
$
2,921,525
Reinsurance Property

2,569,824
Insurance Casualty

1,734,095
Insurance Property

308,201
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance

7,533,645

Reinsurance recoverable on unpaid claims

Reinsurance Casualty

1,163,264
Reinsurance Property

1,097,995
Insurance Casualty

1,505,962
Insurance Property

184,253
Total reinsurance recoverable on unpaid claims

3,951,474

Unallocated claims adjustment expenses

142,289
Other

27,542

169,831

Total gross liability for unpaid claims and claim adjustment expense
$
11,654,950

(Some amounts may not reconcile due to rounding.)


	Average Annual Percentage Payout of Incurred Loss by Age, Net of Reinsurance (unaudited)
Years	1		2		3		4		5		6		7		8		9		10
Property	57.1	%	29.8	%	4.0	%	4.7	%	1.8	%	1.6	%	0.2	%	0.7	%	0.2	%	0.1	%

Reserving Methodology

The Company maintains reserves equal to our estimated ultimate liability for losses and loss adjustment expense (LAE) for reported and unreported claims for our insurance and reinsurance businesses. Because reserves are based on estimates of ultimate losses and LAE by underwriting or accident year, the Company uses a variety of statistical and actuarial techniques to monitor reserve adequacy over time, evaluate new information as it becomes known, and adjust reserves whenever an adjustment appears warranted. The Company considers many factors when setting reserves including: (1) exposure base and projected ultimate premium; (2) expected loss ratios by product and class of business, which are developed collaboratively by underwriters and actuaries; (3) actuarial methodologies and assumptions which analyze loss reporting and payment experience, reports from ceding companies and historical trends, such as reserving patterns, loss payments, and product mix; (4) current legal interpretations of coverage and liability; and (5) economic conditions. ~~Insurance~~Management’s best estimate is developed through collaboration with actuarial, underwriting, claims, legal and ~~reinsurance loss~~finance departments and ~~LAE reserves represent~~culminates with the ~~Company’s~~input of reserve committees. Each segment reserve committee

F-30

Table of Contents

includes the participation of the relevant parties from actuarial, finance, claims and segment senior management and has the responsibility for recommending and approving management’s best estimate. Reserves are further reviewed by Everest’s Chief Reserving Actuary and senior management. The objective of such process is to determine a single best estimate viewed by management to be the best estimate of its ultimate loss liability. Actual loss and LAE ultimately paid may deviate, perhaps substantially, from such reserves. Net income ~~(gain or loss)~~ will be impacted in a period in which the change in estimated ultimate loss and LAE is recorded.

The detailed data required to evaluate ultimate losses for the Company’s insurance business is accumulated from its underwriting and claim systems. Reserving for reinsurance requires evaluation of loss information received from ceding companies. Ceding companies report losses in many forms depending on the type of contract and the agreed or contractual reporting requirements. Generally, pro rata contracts require the submission of a monthly/quarterly account, which includes premium and loss activity for the period with

F-26

corresponding reserves as established by the ceding company. This information is recorded into the Company’s records. For certain pro rata contracts, the Company may require a detailed loss report for claims that exceed a certain dollar threshold or relate to a particular type of loss. Excess of loss and facultative contracts generally require individual loss reporting with precautionary notices provided when a loss reaches a significant percentage of the attachment point of the contract or when certain causes of loss or types of injury occur. Experienced ~~claims~~Claims staff ~~handles~~handle individual loss reports and supporting claim information. Based on evaluation of a claim, the Company may establish additional case reserves in addition to the case reserves reported by the ceding company. To ensure ceding companies are submitting required and accurate data, Everest’s Underwriting, Claim, Reinsurance Accounting, and Internal Audit Departments perform various reviews of ceding companies, particularly larger ceding companies, including on-site ~~audits.~~

audits of domestic ceding companies.

The Company segments both reinsurance and insurance reserves into exposure groupings for actuarial analysis. The Company assigns business to exposure groupings so that the underlying exposures have reasonably homogeneous loss development characteristics and are large enough to facilitate credible estimation of ultimate losses. The Company periodically reviews its exposure groupings and may change groupings over time as business changes. The Company currently uses approximately 200 exposure groupings to develop reserve estimates. One of the key selection characteristics for the exposure groupings is the historical duration of the claims settlement process. Business in which claims are reported and settled relatively quickly are commonly referred to as short tail lines, principally property lines. On the other hand, casualty claims tend to take longer to be reported and settled and casualty lines are generally referred to as long tail lines. Estimates of ultimate losses for shorter tail lines, with the exception of loss estimates for large catastrophic events, generally exhibit less volatility than those for the longer tail lines.

The Company uses a variety of actuarial methodologies, such as the expected loss ratio method, chain ladder methods, and Bornhuetter-Ferguson methods, supplemented by judgment where appropriate, to estimate ultimate loss and LAE for each exposure group.

Expected Loss Ratio Method: The expected loss ratio method uses earned premium times an expected loss ratio to calculate ultimate losses for a given underwriting or accident year. This method relies entirely on expectation to project ultimate losses with no consideration given to actual losses. As such, it may be appropriate for an immature underwriting or accident year where few, if any, losses have been reported or paid, but less appropriate for a more mature year.

Chain Ladder Method: Chain ladder methods use a standard loss development triangle to project ultimate losses. Age-to-age development factors are selected for each development period and combined to calculate age-to-ultimate development factors which are then applied to paid or reported losses to project ultimate losses. This method relies entirely on actual paid or reported losses to project ultimate losses. No other factors such as changes in pricing or other expectations are taken into account. It is most appropriate for groups with homogeneous, stable experience where past development patterns are expected to continue in the future. It is least appropriate for groups which have changed significantly over time or which are more volatile.

Bornhuetter-Ferguson Method: The Bornhuetter-Ferguson method is a combination of the expected loss ratio method and the chain ladder method. Ultimate losses are projected based partly on actual paid or reported losses and partly on expectation. Incurred but not reported (IBNR) reserves are calculated using earned premium, an a priori loss ratio, and selected age-to-age development factors and added to actual reported (paid) losses to determine ultimate losses. It is more responsive to actual reported or paid development than the expected loss ratio method but less responsive than the chain ladder method. The reliability of the method depends on the accuracy of the selected a priori loss ratio.

Although the Company uses similar actuarial methods for both short tail and long tail lines, the faster reporting of experience for the short tail lines allows the Company to have greater confidence in its estimates of ultimate losses for

F-31

Table of Contents

short tail lines at an earlier stage than for long tail lines. As a result, the Company utilizes, as well, exposure-based methods to estimate its ultimate losses for longer tail lines, especially for immature underwriting or accident years. For both short and long tail lines, the Company supplements these general approaches with analytically based judgments.

F-27

Key actuarial assumptions contain no explicit provisions for reserve uncertainty nor ~~does the Company~~do we supplement the actuarially determined reserves for uncertainty.

Carried reserves at each reporting date are the Company’s best estimate of ultimate unpaid losses and LAE at that date. The Company completes detailed reserve studies for each exposure group annually for both reinsurance and insurance operations. The completed annual reserve studies are “rolled-forward” for each accounting period until the subsequent reserve study is completed. Analyzing the roll-forward process involves comparing actual reported losses to expected losses based on the most recent reserve study. The Company analyzes significant variances between actual and expected losses and post adjustments to its reserves as warranted.

Certain reserves, including losses from widespread catastrophic events and COVID-19 related losses, cannot be estimated using traditional actuarial methods. These types of events are reserved for separately using a variety of statistical and actuarial techniques. We estimate losses for these types of events based on information derived from catastrophe models, quantitative and qualitative exposure analyses, reports and communications from ceding companies and development patterns for historically similar events, where available.

The Company continues to receive claims under expired insurance and reinsurance contracts asserting injuries and/or damages relating to or resulting from environmental pollution and hazardous substances, including asbestos. Environmental claims typically assert liability for (a) the mitigation or remediation of environmental contamination or (b) bodily injury or property damage caused by the release of hazardous substances into the land, air or water. Asbestos claims typically assert liability for bodily injury from exposure to asbestos or for property damage resulting from asbestos or products containing asbestos.

The Company’s reserves include an estimate of the Company’s ultimate liability for A&E claims. The Company’s A&E liabilities emanate from direct insurance business and Everest Re’s assumed reinsurance business. All of the contracts of insurance and reinsurance, under which the Company has received claims during the past three years, expired more than 20 years ago. There are significant uncertainties surrounding the Company’s reserves for its A&E losses.

A&E exposures represent a separate exposure group for monitoring and evaluating reserve adequacy. The following table summarizes incurred losses with respect to A&E reserves on both a gross and net of reinsurance basis for the periods indicated:

	At December 31,
(Dollars in thousands)		2020		2019		2018
	At December 31,									At December 31,
(Dollars in millions)							(Dollars in millions)	2023	2022		2021
Gross basis:
Beginning of period reserves
Beginning of period reserves
Beginning of period reserves	$	257,921	$	347,495	$	448,993
Incurred losses		1,540		2,071		(2,473)
Paid losses		(40,120)		(91,645)		(99,026)
End of period reserves	$	219,341	$	257,921	$	347,495

Net basis:
Net basis:
Net basis:
Beginning of period reserves
Beginning of period reserves
Beginning of period reserves	$	196,574	$	223,548	$	269,153
Incurred losses		(4,753)		-		-
Paid losses		(24,382)		(26,974)		(45,605)
End of period reserves	$	167,439	$	196,574	$	223,548

Reinsurance ~~Receivables~~Recoverables. Reinsurance ~~receivables~~recoverables for both paid and unpaid losses totaled ~~$4,207,305~~ ~~thousand~~$3.4 billion and ~~$4,444,089~~ ~~thousand~~$3.8 billion at December 31, ~~2020~~2023 and ~~2019,~~2022, respectively. At December 31, ~~2020, $2,687,497~~ ~~thousand,~~2023, $1.5 billion, or ~~63.9~~%45.8%, was receivable from Everest Reinsurance (Bermuda), Ltd. (“Bermuda Re”), an affiliated entity, and is fully collateralized by a trust agreement and ~~$349,447~~ ~~thousand,~~$285 million, or ~~8.3~~%8.5%, was

F-28

receivable from Mt. Logan Re Ltd. (Bermuda) (“Mt. Logan Re”) collateralized segregated accounts. No other retrocessionaire accounted for more than 5%5% of reinsurance receivables.

F-32

~~4. FAIR VALUE~~

GAAP guidance regarding fair value measurements address how companies should measure fair value when they are required to use fair value measures for recognition or disclosure purposes under GAAP and provides a common definitionTable of fair value to be used throughout GAAP. It defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly fashion between market participants at the measurement date. In addition, it establishes a three-level valuation hierarchy for the disclosure of fair value measurements. The valuation hierarchy is based on the transparency of inputs to the valuation of an asset or liability. The level in the hierarchy within which a given fair value measurement falls is determined based on the lowest level input that is significant to the measurement, with Level 1 being the highest priority and Level 3 being the lowest priority.

~~The levels in the hierarchy are defined as follows:~~

~~Level 1:~~	~~Inputs to the valuation methodology are observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in an active market;~~
~~Level 2:~~	Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument;
~~Level 3:~~	~~Inputs to the valuation methodology are unobservable and significant to the fair value measurement.~~

The Company’s fixed maturity and equity securities are primarily managed by third party investment asset managers. The investment asset managers managing publicly traded securities obtain prices from nationally recognized pricing services. These services seek to utilize market data and observations in their evaluation process. They use pricing applications that vary by asset class and incorporate available market information and when fixed maturity securities do not trade on a daily basis the services will apply available information through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing. In addition, they use model processes, such as the Option Adjusted Spread model to develop prepayment and interest rate scenarios for securities that have prepayment features.

ContentsThe investment asset managers do not make any changes to prices received from either the pricing services or the investment brokers. In addition, the investment asset managers have procedures in place to review the reasonableness of the prices from the service providers and may request verification of the prices. In addition, the Company continually performs analytical reviews of price changes and tests the prices on a random basis to an independent pricing source. No material variances were noted during these price validation procedures. In limited situations, where financial markets are inactive or illiquid, the Company may use its own assumptions about future cash flows and risk-adjusted discount rates to determine fair value. At December 31, 2020, $1,259,576 thousand of fixed maturities, market value were fair valued using unobservable inputs. The majority of the fixed maturities, market value, were valued by investment managers’ valuation committees and many of these fair values were substantiated by valuations from independent third parties. The Company has procedures in place to evaluate these independent third party valuations. At December 31, 2019, $702,331 ~~thousand of fixed maturities, market value and $5,826~~ ~~thousand of fixed maturities, fair value were fair valued using unobservable inputs.~~

~~The Company internally manages a public equity portfolio which had a fair value at December 31, 2020 and December 31, 2019 of $784,746~~ ~~thousand and $170,888~~ ~~thousand, respectively, and all prices were obtained from publicly published sources.~~

Equity securities denominated in U.S. currency with quoted prices in active markets for identical assets are categorized as Level 1 since the quoted prices are directly observable. Equity securities traded on foreign exchanges are categorized as Level 2 due to the added input of a foreign exchange conversion rate to determine fair or market value. The Company uses foreign currency exchange rates published by nationally recognized sources.

F-29

All categories of fixed maturity securities listed in the tables below are generally categorized as Level 2, since a particular security may not have traded but the pricing services are able to use valuation models with observable market inputs such as interest rate yield curves and prices for similar fixed maturity securities in terms of issuer, maturity and seniority. For foreign government securities and foreign corporate securities, the fair values provided by the third party pricing services in local currencies, and where applicable, are converted to U.S. dollars using currency exchange rates from nationally recognized sources.

~~The fixed maturities with fair values categorized as Level 3 result when prices are not available from the nationally recognized pricing services.~~

~~The composition and valuation inputs for the presented fixed maturities categories Level 1 and Level 2 are as follows:~~

·U.S. Treasury securities and obligations of U.S. government agencies and corporations are primarily comprised of U.S. Treasury bonds and the fair value is based on observable market inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields;

·Obligations of U.S. states and political subdivisions are comprised of state and municipal bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads;

·Corporate securities are primarily comprised of U.S. corporate and public utility bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads;

·Asset-backed and mortgage-backed securities fair values are based on observable inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields and cash flow models using observable inputs such as prepayment speeds, collateral performance and default spreads;

·Foreign government securities are comprised of global non-U.S. sovereign bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source;

·Foreign corporate securities are comprised of global non-U.S. corporate bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source.

Other invested assets, at fair value, were categorized as Level 3 at December 31, 2020 and December 31, 2019, since it represented a privately placed convertible preferred stock issued by an affiliate. The stock was received in exchange for shares of the Company’s parent. The 25 ~~year redeemable, convertible preferred stock with a 1.75% coupon is valued using a pricing model. The pricing model includes observable inputs such as the U.S. Treasury yield curve rate T note constant maturity 10~~ ~~year and the swap rate on the Company’s June 1, 2044, 4.868% senior notes, with adjustments to reflect the Company’s own assumptions about the inputs that market participants would use in pricing the asset.~~

F-30

~~The following table presents the fair value measurement levels for all assets, which the Company has recorded at fair value (fair and market value) as of the period indicated:~~

Fair Value Measurement Using:

Quoted Prices

in Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

December 31,

Assets

Inputs

Inputs
(Dollars in thousands)
2020

(Level 1)

(Level 2)

(Level 3)
Assets:

Fixed maturities, market value

U.S. Treasury securities and obligations of
U.S. government agencies and corporations
$
681,989

$
-

$
681,989

$
-
Obligations of U.S. States and political subdivisions

577,046

-

577,046

-
Corporate securities

3,449,912

-

2,819,068

630,844
Asset-backed securities

2,474,170

-

1,851,137

623,033
Mortgage-backed securities

Commercial

550,080

-

550,080

-
Agency residential

965,100

-

965,100

-
Non-agency residential

3,164

-

3,164

-
Foreign government securities

742,238

-

742,238

-
Foreign corporate securities

1,199,866

-

1,194,167

5,699
Total fixed maturities, market value

10,643,565

-

9,383,989

1,259,576

Equity securities, fair value

1,288,767

1,222,158

-
66,609

-
Other invested assets, fair value

1,796,479

-

-

1,796,479

~~There were~~ ~~no transfers between Level 1 and Level 2 for the twelve months ended December 31, 2020.~~

F-31

~~The following table presents the fair value measurement levels for all assets, which the Company has recorded at fair value (fair and market value) as of the period indicated.~~

Fair Value Measurement Using:

Quoted Prices

in Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

December 31,

Assets

Inputs

Inputs
(Dollars in thousands)
2019

(Level 1)

(Level 2)

(Level 3)
Assets:

Fixed maturities, market value

U.S. Treasury securities and obligations of
U.S. government agencies and corporations
$
777,515

$
-

$
777,515

$
-
Obligations of U.S. States and political subdivisions

535,911

-

535,911

-
Corporate securities

2,821,557

-

2,274,618

546,939
Asset-backed securities

765,957

-

612,316

153,641
Mortgage-backed securities

Commercial

329,049

-

329,049

-
Agency residential

644,687

-

644,687

-
Non-agency residential

1,638

-

1,638

-
Foreign government securities

658,007

-

658,007

-
Foreign corporate securities

957,758

-

956,007

1,751
Total fixed maturities, market value

7,492,079

-

6,789,748

702,331

Fixed maturities, fair value

5,826

-

-

5,826
Equity securities, fair value

764,049

719,548

44,501

-
Other invested assets, fair value

1,982,582

-

-

1,982,582

~~In addition, $224,698 thousand and $~~209,578 thousand of investments within other invested assets on the consolidated balance sheets as of December 31, 2020 and December 31, 2019, respectively, are not included within the fair value hierarchy tables as the assets are measured at NAV as a practical expedient to determine fair value.

F-32

~~The following tables present the activity under Level 3, fair value measurements using significant unobservable inputs by asset type, for the periods indicated:~~

Total Fixed Maturities, Market Value

December 31, 2020

December 31, 2019

Corporate

Asset

Foreign

Corporate

Asset

Foreign

(Dollars in thousands)
Securities

Backed Securities

Corporate

Total

Securities

Backed Securities

Corporate

Total
Beginning balance
$
546,939

$
153,641

$
1,751

$
702,331

$
376,250

$
-

$
7,744

$
383,994
Total gains or (losses) (realized/unrealized)

Included in earnings

1,216

681

(125)

1,772

4,937

-

(12)

4,925
Included in other comprehensive
  income (loss)

(1,115)

11,678

147

10,710

(21)

3,632

(110)

3,501
Purchases, issuances and settlements

84,840

457,033

3,814

545,687

161,078

150,009

(5,871)

305,216
Transfers in and/or (out) of Level 3

(1,037)

-

113

(924)

4,695

-

-

4,695
Ending balance
$
630,843

$
623,033

$
5,700

$
1,259,576

$
546,939

$
153,641

$
1,751

$
702,331
The amount of total gains or losses for the
  period included in earnings (or changes in
  net assets) attributable to the change in
  unrealized gains or losses relating to
  assets still held at the reporting date
$
(539)

$
-

$
-

$
(539)

$
-

$
-

$
-

$
-

(Some amounts may not reconcile due to rounding.)

Total Fixed Maturities, Fair Value

December 31, 2020

December 31, 2019

Foreign

Foreign

(Dollars in thousands)
Corporate

Total

Corporate

Total
Beginning balance fixed maturities at fair value

5,826

5,826

2,337

2,337
Total gains or (losses) (realized/unrealized)

Included in earnings

(919)

(919)

2,163

2,163
Included in other comprehensive income (loss)

-

-

-

-
Purchases, issuances and settlements

(4,907)

(4,907)

1,326

1,326
Transfers in and/or (out) of Level 3

-

-

-

-
Ending balance
$
-

$
-

$
5,826

$
5,826
The amount of total gains or losses for the period
  included in earnings (or changes in net assets)
  attributable to the change in unrealized gains or
  losses relating to assets still held at the
  reporting date
$
-

$
-

$
1,796

$
1,796
(Some amounts may not reconcile due to rounding.)

~~The net transfers to/(from) Level 3, fair value measurements using significant unobservable inputs for fixed maturities, market value were $(924)~~ ~~thousand and $4,695~~ thousand for the years ended December 31, 2020 and 2019, respectively. The transfers during 2020 were previously priced with investment managers and were subsequently priced by a recognized pricing service as of December 31, 2020. The transfers during 2019 were previously priced by a recognized pricing service and were subsequently priced using investment managers as of December 31, 2019.

~~The following table presents the activity under Level 3, fair value measurements using significant unobservable inputs by equity securities, for the periods indicated:~~

F-33

5.REINSURANCE

December 31,
(Dollars in thousands)
2020

2019
Equity securities

Balance, beginning of period
$
-

$
-
Total (gains) or losses (realized/unrealized)

Included in earnings

-

-
Included in other comprehensive income (loss)

-

-
Purchases, issuances and settlements

9,877

-
Transfers in and/or (out) of Level 3

(9,877)

-
Balance, end of period
$
-

$
-

The amount of total gains or losses for the period included in earnings

(or changes in net assets) attributable to the change in unrealized

gains or losses relating to liabilities still held at the reporting date
$
-

$
-

(Some amounts may not reconcile due to rounding.)

~~The net transfers to/(from) Level 3, fair value measurements using significant unobservable inputs for equity securities, fair value were $(9,877) thousand for 2020 and $0 Thousand for 2019. The transfers of ($~~9,877) thousand during 2020, were related to preferred stock in a private entity purchased during the second quarter of 2020 which was priced at cost originally and was subsequently priced based upon the book value of the underlying private entity as of December 31, 2020.

~~The following table presents the activity under Level 3, fair value measurements using significant unobservable inputs by other invested assets, for the periods indicated:~~

Years Ended December 31,
(Dollars in thousands)
2020

2019
Other invested assets, fair value:

Beginning balance
$
1,982,582

$
1,717,336
Total gains or (losses) (realized/unrealized)

Included in earnings

(186,103)

265,246
Included in other comprehensive income (loss)

-

-
Purchases, issuances and settlements

-

-
Transfers in and/or (out) of Level 3

-

-
Ending balance
$
1,796,479

$
1,982,582
The amount of total gains or losses for the period
  included in earnings (or changes in net assets)
  attributable to the change in unrealized gains or
  losses relating to assets still held at the
  reporting date
$
-

$
-

(Some amounts may not reconcile due to rounding.)

F-34

~~5. SENIOR NOTES~~

The table below displays Holdings’ outstanding senior notes. Market value is based on quoted market prices, but due to limited trading activity, these senior notes are considered Level 2 in the fair value hierarchy.

December 31, 2020

December 31, 2019

Consolidated

Consolidated

Principal

Balance Sheet

Market

Balance Sheet

Market
(Dollars in thousands)
Date Issued

Date Due

Amounts

Amount

Value

Amount

Value
4.868% Senior notes
06/05/2014

06/01/2044

400,000

$
397,194

$
528,000

$
397,074

$
452,848
3.5% Senior notes
10/07/2020

10/15/2050

1,000,000

$
979,524

$
1,138,100

$
-

$
-

On ~~June 5, 2014, Holdings issued $400,000 thousand of~~ ~~30 year senior notes with an annual coupon rate of~~ ~~4.868%, which will mature on~~ ~~June 1, 2044. Interest will be paid semi-annually on June 1 and December 1 of each year.~~

~~On October 7, 2020, Holdings issued $1,000,000~~ ~~thousand of 30~~ ~~year senior notes an interest coupon rate of 3.5% which will mature on October 15, 2050. Interest will be paid semi-annually on April 15th and October 15th of each year.~~

~~Interest expense incurred in connection with these senior notes is as follows for the periods indicated:~~

Years Ended December 31,
(Dollars in thousands)
2020

2019

2018
Interest expense incurred
$
19,472

$
19,472

$
19,472
10/15/2050 Senior Note
$
8,115

$
-

$
-

~~6. LONG TERM SUBORDINATED NOTES~~

The table below displays Holdings’ outstanding fixed to floating rate long term subordinated notes. Market value is based on quoted market prices, but due to limited trading activity, these subordinated notes are considered Level 2 in the fair value hierarchy.

December 31, 2020

December 31, 2019

Original

Consolidated

Consolidated

Principal

Maturity Date

Balance

Market

Balance

Market
(Dollars in thousands)
Date Issued

Amount

Scheduled

Final

Sheet Amount

Value

Sheet Amount

Value
Long term subordinated notes
04/26/2007

$
400,000

05/15/2037

05/01/2067

$
223,674

$
206,447

$
236,758

$
233,191

~~During the fixed rate interest period from~~ ~~May 3, 2007 through~~ ~~May 14, 2017, interest was at the annual rate of~~ ~~6.6%, payable semi-annually in arrears on November 15 and May 15 of each year, commencing on~~ ~~November 15, 2007. During the floating rate interest period from May 15, 2017 through maturity, interest will be based on the 3 month LIBOR plus~~ ~~238.5 basis points, reset quarterly, payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, subject to Holdings’ right to defer interest on~~ one or more occasions for up to ten consecutive years. Deferred interest will accumulate interest at the applicable rate compounded quarterly for periods from and including May 15, 2017. The reset quarterly interest rate for November 16, 2020 to February 15, 2021 is ~~2.6%.~~

~~Holdings may redeem the long term subordinated notes on or after May 15, 2017, in whole or in part at 100% of the principal amount plus accrued and unpaid interest; however, redemption on or after the scheduled maturity date and prior to May 1, 2047~~ is subject to a replacement capital covenant. This covenant is for the benefit of certain senior note holders and it mandates that Holdings receive proceeds from the sale of another subordinated debt issue, of at least similar size, before it may redeem the subordinated notes. Effective upon the maturity of the Company’s 5.40 ~~% senior notes on October 15, 2014, the Company’s 4.868% senior notes, due on June 1, 2044, have become the Company’s long term indebtedness that ranks senior to the long term subordinated notes.~~

F-35

~~The Company repurchased and retired $13,183~~ ~~thousand and $0~~ ~~thousand of its outstanding long term subordinated notes during the years ended December, 2020 and 2019, respectively. The Company realized a gain of $2,536~~ ~~thousand and $0~~ ~~thousand from the repurchase of the long term subordinated notes the years ended December, 2020 and 2019, respectively.~~

~~On March 19, 2009, Group announced the commencement of a cash tender offer for any and all of the 6.60% fixed to floating rate long term subordinated notes. Upon expiration of the tender offer, the Company had reduced its outstanding debt by $161,441~~ ~~thousand.~~

Years Ended December 31,
(Dollars in thousands)
2020

2019

2018
Interest expense incurred
$
7,645

$
11,587

$
10,926

7 ~~. FEDERAL HOME LOAN BANK MEMBERSHIP~~

~~Effective August 15, 2019, Everest Reinsurance Company (“Everest Re”) became a member of the Federal Home Loan Bank of New York (“FHLBNY”), which allows Everest Re to borrow up to 10% of its statutory admitted assets. As of December 31, 2020, Everest Re had admitted assets of approximately $16,840,721~~ ~~thousand which provides borrowing capacity of up to approximately $1,684,072~~ ~~thousand. During 2020, Everest Re borrowed $400,000~~ ~~thousand under its FHLBNY capacity. The borrowings have interest payable at an interest rate of 0.35%. As of December 31, 2020, $310,000~~ ~~of these borrowings remain outstanding, with maturities in November and December 2021. The FHLBNY membership agreement requires that 4.5% of borrowed funds be used to acquire additional membership stock.~~

~~8. COLLATERALIZED REINSURANCE AND TRUST AGREEMENTS~~

A subsidiary of the Company, Everest Re, has established a trust agreement, which effectively uses Everest Re’s investments as collateral, as security for assumed losses payable to non-affiliated ceding companies. At December 31, 2020, the total amount on deposit in the trust account was $886,148 ~~thousand.~~

~~On April 24, 2014, the Company entered into two~~ collateralized reinsurance agreements with Kilimanjaro Re Limited (“Kilimanjaro”), a Bermuda based special purpose reinsurer, to provide the Company with catastrophe reinsurance coverage. These agreements are multi-year reinsurance contracts, which cover specified named storm and earthquake events. The first agreement provides up to $250,000 ~~thousand of reinsurance coverage from named storms in specified states of the Southeastern United States. The second agreement provides up to $200,000~~ thousand of reinsurance coverage from named storms in specified states of the Southeast, Mid-Atlantic and Northeast regions of the United States and Puerto Rico as well as reinsurance coverage from earthquakes in specified states of the Southeast, Mid-Atlantic, Northeast and West regions of the United States, Puerto Rico and British Columbia. These reinsurance agreements expired in April 2018.

On November 18, 2014, the Company entered into a collateralized reinsurance agreement with Kilimanjaro to provide the Company with catastrophe reinsurance coverage. This agreement is a multi-year reinsurance contract which covers specified earthquake events. The agreement provides up to $500,000 ~~thousand of reinsurance coverage from earthquakes in the United States, Puerto Rico and Canada. These reinsurance agreements expired in November, 2019.~~

~~On December 1, 2015, the Company entered into two~~ collateralized reinsurance agreements with Kilimanjaro to provide the Company with catastrophe reinsurance coverage. These agreements are multi-year reinsurance contracts which cover named storm and earthquake events. The first agreement provides up to $300,000 ~~thousand of reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico and Canada. The second agreement provides up to $325,000~~ ~~thousand of reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico and Canada.~~

~~On April 13, 2017, the Company entered into six~~ ~~collateralized reinsurance agreements with Kilimanjaro to provide the Company with annual aggregate catastrophe reinsurance coverage. The initial three~~ ~~agreements~~

F-36

~~are four year~~ ~~reinsurance contracts which cover named storm and earthquake events. These agreements provide up to $225,000~~ ~~thousand, $400,000~~ ~~thousand and $325,000~~ ~~thousand, respectively, of annual aggregate reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico and Canada. The subsequent three~~ ~~agreements are five year~~ ~~reinsurance contracts which cover named storm and earthquake events. These agreements provide up to $50,000~~ ~~thousand, $75,000~~ ~~thousand and $175,000~~ ~~thousand, respectively, of annual aggregate reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico and Canada.~~

~~On April 30, 2018, the Company entered into four~~ collateralized reinsurance agreements with Kilimanjaro to provide the Company with catastrophe reinsurance coverage. These agreements are multi-year reinsurance contracts which cover named storm and earthquake events. The first two ~~agreements are four year~~ ~~reinsurance contracts which provide up to $62,500~~ ~~thousand and $200,000~~ ~~thousand, respectively, of annual aggregate reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico, the U.S. Virgin Islands and Canada. The remaining two~~ ~~agreements are five year~~ ~~reinsurance contracts which provide up to $62,500~~ ~~thousand and $200,000~~ ~~thousand, respectively, of annual aggregate reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico, the U.S. Virgin Islands and Canada.~~

~~On December 12, 2019, the Company entered into four~~ collateralized reinsurance agreements with Kilimanjaro to provide the Company with catastrophe reinsurance coverage. These agreements are multi-year reinsurance contracts which cover named storm and earthquake events. The first two ~~agreements are four year~~ ~~reinsurance contracts which provide up to $150,000~~ ~~thousand and $275,000~~ ~~thousand, respectively, of annual aggregate reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico, the U.S. Virgin Islands and Canada. The remaining two~~ ~~agreements are five year~~ ~~reinsurance contracts which provide up to $150,000~~ ~~thousand and $275,000~~ ~~thousand, respectively, of annual aggregate reinsurance coverage from named storms and earthquakes in the United State, Puerto Rico, the U.S. Virgin Islands and Canada.~~

Recoveries under these collateralized reinsurance agreements with Kilimanjaro are primarily dependent on estimated industry level insured losses from covered events, as well as, the geographic location of the events. The estimated industry level of insured losses is obtained from published estimates by an independent recognized authority on insured property losses. Currently, none of the published insured loss estimates for catastrophe events during the applicable covered periods of the various agreements have exceeded the single event retentions or aggregate retentions under the terms of the agreements that would result in a recovery.

~~Kilimanjaro has financed the various property catastrophe reinsurance coverages by issuing catastrophe bonds to unrelated, external investors. On April 24, 2014, Kilimanjaro issued $450,000~~ ~~thousand of notes (“Series 2014-1 Notes”). The $450,000~~ ~~thousand of Series 2014-1 Notes were fully redeemed on April 30, 2018 and are no longer outstanding. On November 18, 2014, Kilimanjaro issued $500,000~~ ~~thousand of notes (“Series 2014-2 Notes”). The $500,000~~ ~~thousand of Series 2014-2 Notes were fully redeemed in November 2019 and are no longer outstanding. On December 1, 2015, Kilimanjaro issued $625,000~~ ~~thousand of notes (“Series 2015-1 Notes). On April 13, 2017, Kilimanjaro issued $950,000~~ ~~thousand of notes (“Series 2017-1 Notes) and $300,000~~ ~~thousand of notes (“Series 2017-2 Notes). On April 30, 2018, Kilimanjaro issued $262,500~~ ~~thousand of notes (“Series 2018-1 Notes”) and $262,500~~ ~~thousand of notes (“Series 2018-2 Notes”). On December 12, 2019 Kilimanjaro issued $425,000~~ ~~thousand of notes (“Series 2019-1 Notes”) and $425,000~~ thousand of notes (“Series 2019-2 Notes’”). The proceeds from the issuance of the Notes listed above are held in reinsurance trust throughout the duration of the applicable reinsurance agreements and invested solely in US government money market funds with a rating of at least “AAAm” by Standard & Poor’s.

~~9. LEASES~~

Effective January 1, 2019, the Company adopted ASU 2016-02 and ASU 2018-11 which outline new guidance on the accounting for leases. The Company enters into lease agreements for real estate that is primarily used for office space in the ordinary course of business. These leases are accounted for as operating leases, whereby lease expense is recognized on a straight-line basis over the term of the lease. Most leases include an option to extend or renew the lease term. The exercise of the renewal is at the Company’s discretion. The

F-37

operating lease liability includes lease payments related to options to extend or renew the lease term if the Company is reasonably certain of exercise those options. The Company, in determining the present value of lease payments utilizes either the rate implicit in the lease if that rate is readily determinable or the Company’s incremental secured borrowing rate commensurate with terms of the underlying lease.

~~Supplemental information related to operating leases is as follows for the periods indicated:~~

Year Ended

December 31,
(Dollars in thousands)
2020

2019
Lease expense incurred:

Operating lease cost
$
29,822

$
21,471

At December 31,
(Dollars in thousands)
2020

2019
Operating lease right of use assets
$
139,835

$
152,978
Operating lease liabilities

155,144

160,387

Year Ended

December 31,
(Dollars in thousands)
2020

2019
Operating cash flows from operating leases
$
(18,411)

$
(17,617)

At December 31,

2020

2019

Weighted average remaining operating lease term

12.5 years

12.8 years

Weighted average discount rate on operating leases

4.02
%

3.91
%

~~Maturities of the existing lease liabilities are expected to occur as follows:~~

(Dollars in thousands)

2021
$
16,191
2022

18,623
2023

18,211
2024

18,217
2025

15,225
Thereafter

116,197
Undiscounted lease payments

202,664
Less: present value adjustment

47,520
Total operating lease liability
$
155,144

~~On July 2, 2019, the Company entered into a lease agreement to relocate its U.S. corporate offices from Liberty Corner, New Jersey to Warren, New Jersey. The new lease, which covers approximately~~ ~~315,000 square feet of office space, was effective October 1, 2019 and runs through~~ ~~2036. The initial base rent payment of the lease will be approximately $650 thousand per month or $7,800 thousand per year. The Company relocated the existing operations and employees of the Liberty Corner, New Jersey facility to the new corporate complex as of December 2020.~~

F-38

~~10. INCOME TAXES~~

All of the income of Holdings U.S. subsidiaries, including its foreign branches, is subject to the applicable federal, foreign, state and local income taxes on corporations. The provision for income taxes in the consolidated statement of operations and comprehensive income (loss) has been determined by applying the respective tax laws to the income of each entity.

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, enacted on March 27, 2020, provided that U.S. companies could carryback for five years net operating losses incurred in 2018, 2019 and/or 2020. This beneficial tax provision in the CARES Act enabled the Company to carryback its significant 2018 net operating losses to prior tax years with higher effective tax rates of 35~~% versus~~ 21 ~~% in 2018 and later years. As a result, the Company was able to record a net income tax benefit from the five-year carryback of $32.5~~ ~~million and obtain federal income tax cash refunds of $182.5~~ ~~million including interest in 2020.~~

~~The significant components of the provision are as follows for the periods indicated:~~

Years Ended December 31,
(Dollars in thousands)
2020

2019

2018
Current tax expense (benefit):

U.S.
$
(106,719)

$
(1,684)

$
(50,964)
Foreign

(11)

77

8
Total current tax expense (benefit)

(106,730)

(1,607)

(50,956)
Total deferred U.S. tax expense (benefit)

138,388

136,834

(316,069)
Total income tax expense (benefit)
$
31,658

$
135,228

$
(367,025)

~~A reconciliation of the total income tax provision using the statutory U.S. Federal Income tax rate to the Company’s total income tax provision is as follows for the periods indicated:~~

(Dollars in thousands)
2020

2019

2018
Expected income tax provision at the U.S. statutory tax rate
$
80,588

$
160,762

$
(279,216)
Increase (decrease) in taxes resulting from:

Tax exempt income

(3,598)

(3,680)

(3,824)
Dividend received deduction

(1,100)

(998)

(1,277)
Proration

1,049

1,050

1,150
Creditable foreign premium tax

(11,513)

(9,852)

(13,475)
Tax audit settlement

-

(1,576)

(2,060)
U.S. rate differential on carryback of net operation losses to PY

-

-

(43,734)
U.S. rate differential on deferred tax 2017 return to provision

-

-

(28,832)
Share based compensation tax benefits formerly in APIC

(2,612)

(2,987)

(1,450)
Impact of CARES Act

(32,500)

-

-
Change in uncertain tax positions

-

(8,434)

8,434
Other

1,345

942

(2,741)
Total income tax provision
$
31,658

$
135,228

$
(367,025)

(Some amounts may not reconcile due to rounding.)

F-39

~~A reconciliation of the beginning and ending unrecognized tax benefits, for the periods indicated, is as follows:~~

(Dollars in thousands)
2020

2019

2018
Balance at January 1
$
-

$
8,434

$
-
Additions based on tax positions related to the current year

-

-

8,434
Additions for tax positions of prior years

-

-

-
Reductions for tax positions of prior years

-

(8,434)

-
Settlements with taxing authorities

-

-

-
Lapses of applicable statutes of limitations

-

-

-
Balance at December 31
$
-

$
-

$
8,434

~~At December 31, 2020, the Company’s unrecognized tax benefits, excluding interest and penalties, that would impact the effective tax rate were $0 thousand. Interest and penalties related to unrecognized tax benefits are recognized in income tax expense. At December 31, 2020, the Company accrued $0 thousand for the payment of interest (net of the federal benefit) and penalties. At December 31, 2020 and 2019, there were~~ no ~~accrued liabilities, respectively, for the payment of interest and penalties.~~

The Company’s 2014 and subsequent U.S. tax years are open to audit by the IRS. In 2018, the IRS opened an audit of the 2014 tax year. To date, the Company has received only one notice of proposed adjustment for an immaterial amount of tax. The Company proposed affirmative beneficial income tax return adjustments to the IRS at the start of the audit. Subsequent to the Company’s CARES Act net operating loss carryback, the Company expects a tax refund of $16,287 ~~thousand of recaptured foreign tax credits related to the affirmative adjustments.~~

In 2019, the IRS opened an audit of the 2015 through 2017 tax years. To date, the Company has not received any Information Document Requests (“IDRs”) or notices of proposed adjustment. The Company had filed amended tax returns for 2015 and 2016 for $1,519 ~~thousand and $4,685~~ ~~thousand respectively.~~

During 2020, the IRS added 2018 to the audit and indicated that, subsequent to the CARES Act, it would audit tax years 2014 – 2018 all together and conclude its audits simultaneously. To date, the Company has not received any IDRs or notices of proposed adjustment for the 2018 tax year.

F-40

Deferred income taxes reflect the tax effect of the temporary differences between the value of assets and liabilities for financial statement purposes and such values as measured by U.S. tax laws and regulations. The principal items making up the net deferred income tax assets/(liabilities) are as follows for the periods indicated:

At December 31,
(Dollars in thousands)
2020

2019
Deferred tax assets:

Loss reserves
$
96,840

$
66,025
Unearned premium reserve

85,028

75,130
Foreign tax credits

46,109

186,706
Lease Liability

31,989

33,042
Net unrecognized losses on benefit plans

19,636

19,818
Equity compensation

6,749

7,229
Other tax credits

4,591

2,294
Uncollectible reinsurance reserve

3,142

3,142
Investment impairments

1,121

3,961
Net operating loss

684

19,027
Deferred expense

622

517
Unrealized foreign currency losses

597

7,958
Other assets

6,559

5,885
Total deferred tax assets

303,667

430,734

Deferred tax liabilities:

Net fair value income

277,525

266,850
Net unrealized investment gains

84,869

38,074
Deferred acquisition costs

79,994

81,931
Right of use asset

28,822

31,510
Partnership Investments

26,119

15,039
Bond market discount

2,257

1,466
Benefit plan asset

1,765

2,333
Other liabilities

5,056

3,796
Total deferred tax liabilities

506,407

440,999

Net deferred tax assets/(liabilities)
$
(202,740)

$
(10,265)

~~Due to the passage of the CARES Act in 2020, which allowed for a five-year carryback of NOLs, as of December 31, 2020 the Company~~ no longer has a Consolidated U.S. NOL carryforward. Without the Consolidated U.S. NOL carryforward, the Company was able to utilize a significant amount of U.S. Foreign Tax Credits (“FTCs”) in both 2019 and 2020. As a result, its FTC carryforwards were significantly reduced at December 31, 2020 to only $~~46,109 thousand. The remaining FTC carryforwards expire between 2025 and 2030.~~

During 2018, the Company completed its accounting for the TCJA in accordance with SEC Staff Accounting Bulletin 118, including interpretation of the additional guidance issued by the IRS and U.S. Department of the Treasury, and recognized an income tax benefit of $28,411 ~~thousand primarily related to the 2017 tax return to tax provision true-up recorded in 2018.~~

~~Tax effected U.S. Separate Return Limitation Year NOLs of $684~~ ~~thousand begin to expire in 2037.~~

Effective January 1, 2017, the Company adopted ASU 2016-09 which provided new guidance on the treatment of the tax effects of share-based compensation transactions. ASU 2016-09 required that the income tax

F-41

effects of restricted stock vestings and stock option exercises resulting from the change in value of share based compensation awards between the grant date and settlement (vesting/exercising) date be recorded as part of income tax expense (benefit) within the consolidated statements of operations and comprehensive income (loss). Per the new guidance, the Company recorded excess tax benefits of $2,612 ~~thousand, $2,987~~ ~~thousand and $1,450~~ thousand related to restricted stock vestings and stock option exercises as part of income tax expense (benefit) within the consolidated statements of operations and comprehensive income (loss) in 2020, 2019 and 2018, respectively.

In years prior to 2017, the Company recorded tax benefits related to restricted stock vestings and stock option exercises as part of additional paid-in capital in the stockholder’s equity section of the consolidated balance sheets.

The adoption of ASU 2016-09 did not impact the accounting treatment of tax benefits related to dividends on restricted stock. The tax benefits related to the payment of dividends on restricted stock have been recorded as part of additional paid-in capital in the stockholder’s equity section of the consolidated balance sheets in all years. The tax benefits related to the payment of dividends on restricted stock were $414 ~~thousand, $363~~ ~~thousand and $241~~ ~~thousand in 2020, 2019 and 2018, respectively.~~

~~11. REINSURANCE~~

The Company utilizes reinsurance agreements to reduce its exposure to large claims and catastrophic loss occurrences. These agreements provide for recovery from reinsurers of a portion of losses and LAE under certain circumstances without relieving the Company of its underlying obligations to the policyholders. Losses and LAE incurred and premiums earned are reported after deduction for reinsurance. In the event that one or more of the reinsurers were unable to meet their obligations under these reinsurance agreements, the Company would not realize the full value of the reinsurance ~~recoverable~~recoverables balances. The Company's procedures include carefully selecting its reinsurers, structuring agreements to provide collateral funds where necessary, and regularly monitoring the financial condition and ratings of its reinsurers. Reinsurance ~~receivables~~recoverable include balances due from reinsurance companies and are presented net of an allowance for uncollectible reinsurance. Reinsurance ~~receivables~~recoverables include an estimate of the amount of gross losses and loss adjustment expense reserves that may be ceded under the terms of the reinsurance agreements, including incurred but not reported unpaid losses. The Company’s estimate of losses and loss adjustment expense reserves ceded to reinsurers is based on assumptions that are consistent with those used in establishing the gross reserves for amounts the Company owes to its claimants. The Company estimates its ceded reinsurance ~~receivable~~recoverable based on the terms of any applicable facultative and treaty reinsurance, including an estimate of how incurred but not reported losses will ultimately be ceded under reinsurance agreements. Accordingly, the Company’s estimate of reinsurance ~~receivables~~recoverables is subject to similar risks and uncertainties as the estimate of the gross reserve for unpaid losses and loss adjustment expenses. The Company may hold partial collateral, including letters of credit and funds held, under these agreements. See also Note 1C, Note 34 and Note 8.

10.

Balances are considered past due when amounts that have been billed are not collected within contractually stipulated time periods, generally 30, 60 or 90 days. To manage reinsurer credit risk, a reinsurance security review committee evaluates the credit standing, financial performance, management and operational quality of each potential reinsurer. In placing reinsurance, the Company considers the nature of the risk reinsured, including the expected liability payout duration, and establishes limits tiered by reinsurer credit rating.

Where its contracts permit, the Company secures future claim obligations with various forms of collateral or other credit enhancement, including irrevocable letters of credit, secured trusts, funds held accounts and group wide offsets.

~~The Company periodically evaluates the recoverability~~

See Note 1C for discussion of ~~its~~allowance on reinsurance receivable assets and establishes an allowance for uncollectible reinsurance. The allowance for uncollectible reinsurance reflects management’s best estimate of reinsurance cessions that may be uncollectible in the future due to reinsurers’ unwillingness or inability to pay. The allowance for uncollectible reinsurance comprises an allowance and an allowance for disputed balances. Based on this analysis, the Company may adjust the allowance for uncollectible reinsurance or charge off reinsurer balances that are determined to be uncollectible.

recoverables.

F-42

Due to the inherent uncertainties as to collection and the length of time before reinsurance receivable become due, it is possible that future adjustments to the Company’s reinsurance receivable, net of the allowance, could be required, which could have a material adverse effect on the Company’s consolidated results of operations or cash flows in a particular quarter or annual period.

The allowance is estimated as the amount of reinsurance receivable exposed to loss multiplied by estimated factors for the probability of default. The probability of default is assigned based on each reinsurer's credit rating, or a rating is estimated if no external rating is available. Credit ratings are reviewed and updated at least annually. The probability of default factors are historical insurer and reinsurer defaults for liabilities with similar durations to the reinsured liabilities as estimated through multiple economic cycles. Credit ratings are forward-looking and consider a variety of economic outcomes. The Company's evaluation of the required allowance for reinsurance receivable considers the current economic environment as well as macroeconomic scenarios.

Insurance companies, including reinsurers, are regulated and hold risk-based capital to mitigate the risk of loss due to economic factors and other risks. Non-U.S. reinsurers are either subject to a capital regime substantively equivalent to domestic insurers or we hold collateral to support collection of reinsurance receivable. As a result, there is limited history of losses from insurer defaults.

The Company records credit loss expenses related to reinsurance receivable in losses and loss adjustment expenses. Write-offs of reinsurance receivable and any related allowance are recorded in the period in which the balance is deemed uncollectible. The allowance for the reinsurance receivables is $14,233 ~~thousand and $12,836~~ ~~thousand as of December 31, 2020 and 2019, respectively.~~

Premiums written and earned and incurred losses and LAE are comprised of the following for the periods indicated:


	Years Ended December 31,
(Dollars in millions)	2023		2022		2021
Written premiums:
Direct	$	3,785	$	3,701	$	3,300
Assumed	7,332		5,975		6,031
Ceded	(1,905)		(1,645)		(1,612)
Net written premiums	$	9,212	$	8,032	$	7,719

Premiums earned:
Direct	$	3,709	$	3,544	$	2,982
Assumed	6,705		5,945		5,741
Ceded	(1,878)		(1,613)		(1,544)
Net premiums earned	$	8,536	$	7,876	$	7,179

Incurred losses and LAE:
Direct	$	2,594	$	2,423	$	2,043
Assumed	3,449		4,107		3,872
Ceded	(465)		(708)		(528)
Net incurred losses and LAE	$	5,578	$	5,823	$	5,387

F-33

Table of Contents

Years Ended December 31,
(Dollars in thousands)
2020

2019

2018
Written premiums:

Direct
$
2,698,100

$
2,449,198

$
1,996,606
Assumed

5,258,938

4,603,866

4,577,070
Ceded

(1,318,338)

(1,278,115)

(1,541,814)
Net written premiums
$
6,638,700

$
5,774,949

$
5,031,862

Premiums earned:

Direct
$
2,591,613

$
2,255,388

$
1,903,576
Assumed

5,183,399

4,427,006

4,447,862
Ceded

(1,368,436)

(1,193,359)

(1,512,380)
Net premiums earned
$
6,406,576

$
5,489,035

$
4,839,058

Incurred losses and LAE:

Direct
$
1,784,616

$
1,401,251

$
1,182,399
Assumed

3,576,252

2,913,987

4,162,776
Ceded

(752,724)

(486,116)

(534,157)
Net incurred losses and LAE
$
4,608,144

$
3,829,122

$
4,811,018

The Company has engaged in reinsurance transactions with Bermuda Re, Everest Reinsurance Company (Ireland), dac (“Ireland Re”), Everest Insurance (Ireland), dac (“Ireland Insurance”), Everest International Reinsurance Ltd. (“Everest International”), ~~Mt. Logan Re,~~ Everest Insurance Company of Canada (“Everest Canada”) ~~and~~, Lloyd’s Syndicate 2786 and Mt. Logan Re, which are affiliated companies primarily driven by enterprise risk and capital management considerations under which business is ceded at market rates and terms.

F-43

The table below represents affiliated quota share reinsurance agreements ("whole account quota share") for all new and renewal business for the indicated coverage period:

(Dollars in thousands)

Single

Percent

Assuming

Occurrence

Aggregate

(Dollars in millions)

Coverage Period

Ceding Company

Ceded

Company

Type of Business

Limit

01/01/2010-12/31/2010

Everest Re

44.0

Bermuda Re

property / casualty business

150,000

325,000

01/01/2010-12/31/2010

01/01/2011-12/31/2011

Everest Re

50.0

Bermuda Re

property / casualty business

150,000

300,000

01/01/2012-12/31/2014

Everest Re

50.0

Bermuda Re

property / casualty business

100,000

200,000

01/01/2012-12/31/2014

01/01/2015-12/31/2016

Everest Re

50.0

Bermuda Re

property / casualty business

162,500

325,000

01/01/2017-12/31/2017

Everest Re

60.0

Bermuda Re

property / casualty business

219,000

438,000

01/01/2017-12/31/2017

01/01/2010-12/31/2010

Everest Re- Canadian Branch

60.0

Bermuda Re

property business

350,000

⁽¹⁾

01/01/2011-12/31/2011

Everest Re- Canadian Branch

60.0

Bermuda Re

property business

350,000

⁽¹⁾

01/01/2011-12/31/2011

01/01/2012-12/31/2012

Everest Re- Canadian Branch

75.0

Bermuda Re

property / casualty business

206,250

⁽¹⁾

412,500

⁽¹⁾

Everest Re- Canadian Branch

75.0

Bermuda Re

Property / Casualty Business

206

(1)

413

(1)

01/01/2013-12/31/2013

Everest Re- Canadian Branch

75.0

Bermuda Re

property / casualty business

150,000

⁽¹⁾

412,500

⁽¹⁾

01/01/2013-12/31/2013

Everest Re- Canadian Branch

75.0

Bermuda Re

Property / Casualty Business

150

(1)

413

(1)

01/01/2014-12/31/2017

Everest Re- Canadian Branch

75.0

Bermuda Re

property / casualty business

262,500

⁽¹⁾

412,500

⁽¹⁾

01/01/2014-12/31/2017

Everest Re- Canadian Branch

75.0

Bermuda Re

Property / Casualty Business

263

(1)

413

(1)

01/01/2012-12/31/2017

Everest Canada

80.0

Everest Re-

Canadian Branch

property business

01/01/2020-01/01/2021

Everest International Assurance

100.0

Bermuda Re

life business

(1) Amounts shown are Canadian dollars.

01/01/2020

(1)Amounts shown are Canadian dollars.

Effective January 1, 2018, Everest Re entered into a twelve month whole account aggregate stop loss reinsurance contract (“stop loss agreement”) with Bermuda Re. The stop loss agreement provides coverage for ultimate net losses on applicable net earned premiums above a retention level, subject to certain other coverage limits and conditions. The stop loss agreement ~~has been renewed annually and~~ was most recently renewed effective January 1, ~~2020.~~

~~In addition,~~ 2024.

Everest Re entered into a ~~property~~ catastrophe excess of loss reinsurance contract with Bermuda Re (UK Branch), effective January 1, ~~2019.~~2021 through December 31, 2021. The contract ~~provided $100,000~~ ~~thousand~~provides Bermuda Re (UK Branch), with up to £100 million of reinsurance coverage for ~~property~~each catastrophe ~~losses~~occurrence above ~~certain attachment points.~~£24 million. Bermuda Re (UK Branch) paid Everest Re £5 million for this coverage. This agreement was most recently renewed effective January 1, 2024.

Everest Re entered into a catastrophe excess of loss reinsurance contract with Ireland Re, effective February 1, 2021 through January 31, 2022. The contract provides Ireland Re with up to €210 million of reinsurance coverage for each catastrophe occurrence above €18 million. Ireland Re paid Everest Re €14 million for this coverage. This agreement was most recently renewed effective February 1, 2024.

Everest Re entered into a catastrophe excess of loss reinsurance contract with Ireland Re, effective March 31, 2023 through January 31, 2024. The contract provides Ireland Re with up to €61 million of reinsurance coverage for each catastrophe occurrence above €139 million. Ireland Re paid Everest Re €2 million for this coverage. This agreement was not renewed ~~and expired as~~for 2024.

F-34

Table of ~~December 31, 2019.~~

Contents

The table below represents loss portfolio transfer (“LPT”) reinsurance agreements whereby net insurance exposures and reserves were transferred to an affiliate.

(Dollars in thousands)
Effective

Transferring

Assuming

% of Business or

Covered Period
Date

Company

Company

Amount of Transfer

of Transfer
10/01/2001

Everest Re (Belgium Branch)

Bermuda Re

100
%

All years
10/01/2008

Everest Re

Bermuda Re

$
747,022

01/01/2002-12/31/2007
12/31/2017

Everest Re

Bermuda Re

$
970,000

All years

(Dollars in millions)

Effective
Date

Transferring
Company

Assuming
Company

% of Business or
Amount of Transfer

Covered Period
of Transfer

10/01/2001

Everest Re (Belgium Branch)

Bermuda Re

100

All years

10/01/2008

Everest Re

Bermuda Re

747

01/01/2002-12/31/2007

12/31/2017

Everest Re

Bermuda Re

970

All years

On December 31, 2017, the Company entered into a LPT agreement with Bermuda Re. The LPT agreement covers subject loss reserves of $~~2,336,242 thousand~~$2.3 billion for accident years 2017 and prior. As a result of the LPT agreement, the Company transferred $~~1,000,000 thousand~~$1.0 billion of cash and fixed maturity securities and transferred $~~970,000 thousand~~$970 million of loss reserves to Bermuda Re. As part of the LPT agreement, Bermuda Re will provide an additional $~~500,000 thousand~~$500 million of adverse development coverage on the subject loss reserves.

As of December 31, 2023, and December 31, 2022, the Company has a reinsurance recoverable of $807 million and $804 million, respectively, recorded on its balance sheet due from Bermuda Re.

The following tables summarize the significant premiums and losses ceded ~~by the Company to Bermuda Re~~ and ~~Everest International, respectively, and premiums and losses~~ assumed by the Company ~~from Everest Canada and Lloyd’s syndicate 2786~~in transactions with affiliated entities for the periods indicated:

Bermuda Re
Years Ended December 31,
(Dollars in thousands)
2020

2019

2018
Ceded written premiums
$
131,341

$
100,084

$
572,620
Ceded earned premiums

131,574

101,681

586,120
Ceded losses and LAE

108,477

(51,686)

(49,955)

F-44


Everest International	Years Ended December 31,
(Dollars in thousands)	2020		2019		2018
Bermuda Re							Bermuda Re	Years Ended December 31,
(Dollars in millions)							(Dollars in millions)	2023	2022	2021
Ceded written premiums	$	-	$	-	$	-
Ceded earned premiums		-		-		-
Ceded losses and LAE		(503)		324		(753)

Assumed written premiums
Assumed written premiums
Assumed written premiums
Assumed earned premiums


Everest Canada	Years Ended December 31,
(Dollars in thousands)	2020		2019		2018
Ireland Re							Ireland Re	Years Ended December 31,
(Dollars in millions)							(Dollars in millions)	2023	2022	2021
Assumed written premiums	$	1	$	-	$	-
Assumed earned premiums		(7)		-		-
Assumed losses and LAE		(2,102)		3,024		6,238


Lloyd's Syndicate 2786	Years Ended December 31,
(Dollars in thousands)	2020		2019		2018
Ireland Insurance							Ireland Insurance	Years Ended December 31,
(Dollars in millions)							(Dollars in millions)	2023	2022	2021
Assumed written premiums	$	(3,592)	$	(11,470)	$	10,800
Assumed earned premiums		(3,375)		(18,650)		35,826
Assumed losses and LAE		(2,636)		8,355		27,550

In 2013, Group established Mt. Logan Re, which is a Class 3 insurer based in Bermuda. Mt. Logan Re then established separate segregated accounts for its business activity, which invest in a diversified set of catastrophe exposures.

The following table summarizes the premiums and losses that are ceded by the Company to Mt. Logan Re segregated ~~accounts~~accounts:


Mt. Logan Re Segregated Accounts	Years Ended December 31,
(Dollars in millions)	2023		2022		2021
Ceded written premiums	$	210	$	170	$	286
Ceded earned premiums	205		174		280
Ceded losses and LAE	31		150		194

6.SEGMENT REPORTING

The Company operates through two operating segments. The Reinsurance operation writes worldwide property and ~~assumed by~~casualty reinsurance and specialty lines of business, on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies. Business is written in the United States as well as through branches in Canada

F-35

Table of Contents

and Singapore. The Insurance operation writes property and casualty insurance directly and through brokers, including for surplus lines, and general agents within the United States. The two segments are managed independently, but conform with corporate guidelines with respect to pricing, risk management, control of aggregate catastrophe exposures, capital, investments and support operations.

within the Reinsurance segment to the Insurance segment to appropriately reflect how the business segments are managed. These changes have been reflected retrospectively.

Mt. Logan Re Segregated Accounts
Years Ended December 31,
(Dollars in thousands)
2020

2019

2018
Ceded written premiums
$
263,487

$
240,721

$
207,439
Ceded earned premiums

265,381

235,500

212,046
Ceded losses and LAE

175,087

171,900

234,471
Assumed written premiums

-

-

10,582
Assumed earned premiums

-

-

10,582
Assumed losses and LAE

-

-

-
The Company does not review and evaluate the financial results of its operating segments based upon balance sheet data. Management generally monitors and evaluates the financial performance of these operating segments based upon their underwriting results. Underwriting results include earned premium less losses and LAE incurred, commission and brokerage expenses and other underwriting expenses. We measure our underwriting results using ratios, in particular loss, commission and brokerage and other underwriting expense ratios, which, respectively, divide incurred losses, commissions and brokerage and other underwriting expenses by premiums earned. Management has determined that these measures are appropriate and align with how the business is managed. We continue to evaluate our segments as our business evolves and may further refine our segments and financial performance measures.

~~12. COMPREHENSIVE INCOME (LOSS)~~

The following tables present the ~~components of comprehensive income (loss) in~~underwriting results for the ~~consolidated statements of operations and comprehensive income (loss)~~operating segments for the periods indicated:

Year Ended

Year Ended

Year Ended
(Dollars in thousands)
December 31, 2020

December 31, 2019

December 31, 2018

Before Tax

Tax Effect

Net of Tax

Before Tax

Tax Effect

Net of Tax

Before Tax

Tax Effect

Net of Tax
Unrealized appreciation (depreciation)
  ("URA(D)") on securities - temporary
$
206,159

(43,078)

$
163,080

$
222,884

(46,971)

$
175,913

$
(119,058)

$
25,582

$
(93,476)
URA(D) on securities - OTTI

-

-

-

(546)

115

(431)

645

(135)

510
Reclassification of net realized losses
  (gains) included in net income (loss)

32,475

(7,007)

25,468

6,068

(988)

5,080

3,416

(1,395)

2,021
Foreign currency translation adjustments

18,277

(3,815)

14,461

21,708

(4,555)

17,153

(46,136)

9,705

(36,431)
Benefit plan actuarial net gain (loss)

(7,107)

1,492

(5,615)

(15,938)

3,347

(12,591)

(646)

136

(510)
Reclassification of amortization of net gain
  (loss) included in net income (loss)

7,974

(1,674)

6,300

6,902

(1,449)

5,453

6,356

(1,335)

5,021
Total other comprehensive income (loss)
$
257,778

$
(54,082)

$
203,694

$
241,078

$
(50,501)

$
190,577

$
(155,423)

$
32,558

$
(122,865)

(Some amounts may not reconcile due to rounding)


	Year Ended December 31, 2023
(Dollars in millions)	Reinsurance		Insurance		Total
Gross written premiums	$	7,181	$	3,936	$	11,117
Net written premiums	6,205		3,007		9,212

Premiums earned	$	5,637	$	2,900	$	8,536
Incurred losses and LAE	3,329		2,249		5,578
Commission and brokerage	1,545		306		1,851
Other underwriting expenses	167		407		574
Underwriting gain (loss)	$	596	$	(64)	$	533

Net investment income					993
Net gains (losses) on investments					(180)
Corporate expenses					(18)
Interest, fee and bond issue cost amortization expense					(134)
Other income (expense)					(11)
Income (loss) before taxes					$	1,181

F-45

(Some amounts may not reconcile due to rounding.)

F-36

Table of Contents

~~The following table presents details~~


	Year Ended December 31, 2022
(Dollars in millions)	Reinsurance		Insurance		Total
Gross written premiums	$	5,879	$	3,798	$	9,677
Net written premiums	5,204		2,828		8,032

Premiums earned	$	5,147	$	2,729	$	7,876
Incurred losses and LAE	3,926		1,897		5,823
Commission and brokerage	1,308		325		1,632
Other underwriting expenses	138		364		501
Underwriting gain (loss)	$	(224)	$	144	$	(81)

Net investment income					638
Net gains (losses) on investments					(982)
Corporate expenses					(26)
Interest, fee and bond issue cost amortization expense					(101)
Other income (expense)					(6)
Income (loss) before taxes					$	(557)

(Some amounts may not reconcile due to rounding.)


	Year Ended December 31, 2021
(Dollars in millions)	Reinsurance		Insurance		Total
Gross written premiums	$	5,979	$	3,352	$	9,331
Net written premiums	5,217		2,503		7,719

Premiums earned	$	4,899	$	2,279	$	7,179
Incurred losses and LAE	3,750		1,637		5,387
Commission and brokerage	1,229		284		1,513
Other underwriting expenses	142		312		454
Underwriting gain (loss)	$	(220)	$	46	$	(175)

Net investment income					745
Net gains (losses) on investments					501
Corporate expenses					(33)
Interest, fee and bond issue cost amortization expense					(70)
Other income (expense)					23
Income (loss) before taxes					$	991

(Some amounts may not reconcile due to rounding.)

Further classifications of revenues by geographic location are impracticable to disclose and, therefore, are not provided. Additionally, such information is not utilized by the Company’s CODM when reviewing the business to assess performance, make operating decisions or allocate resources.

Approximately 17.2%, 17.6% and 19.3% of the ~~amounts reclassified from AOCI~~Company’s gross written premiums in 2023, 2022 and 2021, respectively, were sourced through the Company’s largest intermediary.

F-37

Table of Contents

7.SENIOR NOTES

The table below displays Holdings’ outstanding senior notes. Fair value is based on quoted market prices, but due to limited trading activity, these senior notes are considered Level 2 in the fair value hierarchy.


				December 31, 2023				December 31, 2022
(Dollars in millions)	Date Issued	Date Due	Principal Amounts	Consolidated Balance Sheet Amount		Fair Value		Consolidated Balance Sheet Amount		Fair Value
4.868% Senior notes	06/05/2014	06/01/2044	400	$	398	$	369	$	397	$	343
3.5% Senior notes	10/07/2020	10/15/2050	1,000	981		742		981		677
3.125% Senior notes	10/04/2021	10/15/2052	1,000	970		688		969		627
			2,400	$	2,349	$	1,799	$	2,347	$	1,647

Interest expense incurred in connection with these senior notes is as follows for the periods indicated:

Affected line item within the

Years Ended December 31,

statements of operations and
AOCI component
2020

2019

comprehensive income (loss)
(Dollars in thousands)

URA(D) on securities
$
32,475

$
6,068

Other net realized capital gains (losses)

(7,007)

(988)

Income tax expense (benefit)

$
25,468

$
5,080

Net income (loss)
Benefit plan net gain (loss)
$
7,974

$
6,902

Other underwriting expenses

(1,674)

(1,449)

Income tax expense (benefit)

$
6,300

$
5,453

Net income (loss)

(Some amounts may not reconcile due to rounding)


			Years Ended December 31,
(Dollars in millions)	Interest Paid	Payable Dates	2023		2022		2021
4.868% Senior notes	semi-annually	June 1/December 1	$	19	$	19	$	19
3.5% Senior notes	semi-annually	April 15/October 15	35		35		35
3.125% Senior notes	semi-annually	April 15/October 15	32		32		8
			$	86	$	86	$	62

8.LONG-TERM SUBORDINATED NOTES

The ~~following~~ table ~~presents the components of accumulated other comprehensive income (loss), net of tax,~~below displays Holdings’ outstanding fixed to floating rate long-term subordinated notes. Fair value is based on quoted market prices, but due to limited trading activity, these subordinated notes are considered Level 2 in the ~~consolidated balance sheets~~fair value hierarchy.

December 31, 2023

December 31, 2022

Date Issued

Original
Principal
Amount

Maturity Date

Consolidated
Balance
Sheet Amount

Fair
Value

Consolidated
Balance
Sheet Amount

Fair
Value

(Dollars in millions)

Scheduled

Final

Long-term subordinated notes

04/26/2007

400

05/15/2037

05/01/2067

218

187

218

187

During the fixed rate interest period from May 3, 2007 through May 14, 2017, interest was at the annual rate of 6.6%, payable semi-annually in arrears on November 15 and May 15 of each year, commencing on November 15, 2007. During the floating rate interest period from May 15, 2017 through maturity, interest will be based on the 3 month LIBOR plus 238.5 basis points, reset quarterly, payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, subject to Holdings’ right to defer interest on one or more occasions for up to ten consecutive years. Deferred interest will accumulate interest at the applicable rate compounded quarterly for periods from and including May 15, 2017. The reset quarterly interest rate for November 15, 2023 to February 14, 2024 is 8.03%. Following the cessation of LIBOR, for periods from and including August 15, 2023, interest will be based on 3-month CME Term SOFR plus a spread.

Holdings may redeem the long-term subordinated notes on or after May 15, 2017, in whole or in part at 100% of the principal amount plus accrued and unpaid interest; however, redemption on or after the scheduled maturity date and prior to May 1, 2047 is subject to a replacement capital covenant. This covenant is for the benefit of certain senior note holders and it mandates that Holdings receive proceeds from the sale of another subordinated debt issue, of at least similar size, before it may redeem the subordinated notes. The Company’s 4.868% senior notes, due on June 1, 2044, 3.5% senior notes due on October 15, 2050 and 3.125% senior notes due on October 15, 2052 are the Company’s long-term indebtedness that rank senior to the long-term subordinated notes.

In 2009, the Company had reduced its outstanding amount of long-term subordinated notes through the initiation of a cash tender offer for any and all of the long-term subordinated notes. In addition, the Company repurchased and retired $6 million of the outstanding long-term subordinated notes for the year ended December 31, 2022. The Company realized a gain of $1 million on the repurchases made during 2022.

F-38

Table of Contents

Interest expense incurred in connection with these long-term subordinated notes is as follows for the periods indicated:

Years Ended December 31,
(Dollars in thousands)
2020

2019
Beginning balance of URA (D) on securities
$
124,612

$
(55,950)
Current period change in URA (D) of investments -  temporary

188,548

180,993
Current period change in URA (D) of investments -
  non-credit OTTI

-

(431)
Ending balance of URA (D) on securities

313,161

124,612
Beginning balance of foreign currency translation
  adjustments

14,267

(2,886)
Current period change in foreign currency translation
  adjustments

14,461

17,153
Ending balance of foreign currency translation
  adjustments

28,727

14,267
Beginning balance of benefit plan net gain (loss)

(74,556)

(67,418)
Current period change in benefit plan net gain (loss)

685

(7,138)
Ending balance of benefit plan net gain (loss)

(73,870)

(74,556)
Ending balance of accumulated other comprehensive
  income (loss)
$
268,018

$
64,324


	Years Ended December 31,
(Dollars in millions)	2023		2022		2021
Interest expense incurred	$	17	$	9	$	6

13 ~~. EMPLOYEE BENEFIT PLANS~~

~~Defined Benefit Pension Plans.~~

9.FEDERAL HOME LOAN BANK MEMBERSHIP

Everest Re is a member of the Federal Home Loan Bank of New York (“FHLBNY”), which allows Everest Re to borrow up to 10% of its statutory admitted assets. As of December 31, 2023, Everest Re had admitted assets of approximately $26.3 billion which provides borrowing capacity in excess of $2.6 billion. As of December 31, 2023, Everest Re had $819 million of borrowings outstanding, all of which expire in 2024. Everest Re incurred interest expense of $30 million and $4 million for the years ended December 31, 2023 and 2022, respectively. The FHLBNY membership agreement requires that 4.5% of borrowed funds be used to acquire additional membership stock. Additionally, the FHLBNY membership requires that members must have sufficient qualifying collateral pledged. As of December 31, 2023, Everest Re had $1.1 billion of collateral pledged.

10.COLLATERALIZED REINSURANCE, TRUST AGREEMENTS AND OTHER RESTRICTED ASSETS

The Company maintains ~~both qualified and non-qualified defined benefit pension plans~~certain restricted assets as security for potential future obligations, primarily to support its U.S. employees employed prior to April 1, 2010. Generally, the Company computes the benefits based on average earnings over a period prescribed by the plans and credited length of service. The Company’s non-qualified defined benefit pension plan provided compensating pension benefits for participants whose benefits have been curtailed under the qualified plan due to Internal Revenue Code limitations. Effective January 1, 2018, participants of the Company’s non-qualified defined benefit pension plan may no longer accrue additional service benefits.

~~Although not required to make contributions under IRS regulations,~~ ~~the following table summarizes the Company’s contributions to the defined benefit pension plans for the periods indicated:~~

F-46

Years Ended December 31,
(Dollars in thousands)
2020

2019

2018
Company contributions
$
6,825

$
4,750

$
77,743

underwriting operations. The following table summarizes the Company’s ~~pension expense for~~restricted assets:


	At December 31,
(Dollars in millions)	2023		2022
Collateral in trust for non-affiliated agreements (1)	$	825	$	705

Collateral for FHLB borrowings	1,077		572
Securities on deposit with or regulated by government authorities	1,447		1,360
Funds held by reinsureds	306		303
Total restricted assets	$	3,654	$	2,941

(1) At December 31, 2023 and December 31, 2022, the ~~periods indicated:~~

total amount on deposit in trust accounts includes $116 million and $21 million of restricted cash respectively.

Years Ended December 31,
(Dollars in thousands)
2020

2019

2018
Pension expense
$
8,429

$
10,042

$
9,728

The ~~following~~Company entered into various collateralized reinsurance agreements with Kilimanjaro Re Limited (“Kilimanjaro”), a Bermuda-based special purpose reinsurer, to provide the Company with catastrophe reinsurance coverage. These agreements are multi-year reinsurance contracts which cover named storm and earthquake events. The table below summarizes the ~~status~~various agreements:

(Dollars in millions)

Class

Description

Effective Date

Expiration Date

Limit

Coverage
Basis

Series 2019-1 Class A-2

US, Canada, Puerto Rico – Named Storm and Earthquake Events

12/12/2019

12/19/2024

150

Occurrence

Series 2019-1 Class B-2

US, Canada, Puerto Rico – Named Storm and Earthquake Events

12/12/2019

12/19/2024

275

Aggregate

Series 2021-1 Class A-1

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/8/2021

4/21/2025

150

Occurrence

Series 2021-1 Class B-1

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/8/2021

4/21/2025

Aggregate

Series 2021-1 Class C-1

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/8/2021

4/21/2025

Aggregate

Series 2021-1 Class A-2

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/8/2021

4/20/2026

150

Occurrence

Series 2021-1 Class B-2

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/8/2021

4/20/2026

Aggregate

Series 2021-1 Class C-2

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/8/2021

4/20/2026

Aggregate

Series 2022-1 Class A

US, Canada, Puerto Rico – Named Storm and Earthquake Events

6/22/2022

6/25/2025

300

Aggregate

Total available limit as of December 31, 2023

1,375

Years Ended December 31,
(Dollars in thousands)
2020

2019
Change in projected benefit obligation:

Benefit obligation at beginning of year
$
355,356

$
300,244
Service cost

9,522

8,255
Interest cost

10,112

11,712
Actuarial (gain)/loss

43,595

46,206
Curtailment

-

-
Benefits paid

(14,115)

(11,062)
Projected benefit obligation at end of year

404,471

355,356

Change in plan assets:

Fair value of plan assets at beginning of year

301,467

260,531
Actual return on plan assets

60,286

47,247
Actual contributions during the year

6,825

4,750
Benefits paid

(14,115)

(11,062)
Fair value of plan assets at end of year

354,464

301,467

Funded status at end of year
$
(50,007)

$
(53,889)

(Some amounts may not reconcile due to rounding.)

~~Amounts recognized in the consolidated balance sheets for the periods indicated:~~

F-47

At December 31,
(Dollars in thousands)
2020

2019
Other assets (due beyond one year)
$
-

$
-
Other liabilities (due within one year)

(2,197)

(7,362)
Other liabilities (due beyond one year)

(47,810)

(46,527)
Net amount recognized in the consolidated balance sheets
$
(50,007)

$
(53,889)

~~Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income (loss) for the periods indicated:~~

At December 31,
(Dollars in thousands)
2020

2019
Accumulated income (loss)
$
(91,979)

$
(97,466)
Accumulated other comprehensive income (loss)
$
(91,979)

$
(97,466)

(Some amounts may not reconcile due to rounding.)

~~Other changes in other comprehensive income (loss) for the periods indicated are as follows:~~

Years Ended December 31,
(Dollars in thousands)
2020

2019
Other comprehensive income (loss) at December 31, prior year
$
(97,466)

$
(88,580)
Net gain (loss) arising during period

(4,090)

(16,927)
Recognition of amortizations in net periodic benefit cost:

Actuarial loss

9,576

8,042
Curtailment loss recognized

-

-
Other comprehensive income (loss) at December 31, current year
$
(91,979)

$
(97,466)

(Some amounts may not reconcile due to rounding.)

~~Net periodic benefit cost for U.S. employees included the following components for the periods indicated:~~

F-48

Years Ended December 31,
(Dollars in thousands)
2020

2019

2018
Service cost
$
9,522

$
8,255

$
9,801
Interest cost

10,112

11,712

10,290
Expected return on assets

(20,781)

(17,968)

(17,202)
Amortization of actuarial loss from earlier periods

8,551

7,635

6,839
Settlement

1,025

408

-
Net periodic benefit cost
$
8,429

$
10,042

$
9,728

Other changes recognized in other comprehensive income (loss):

Other comprehensive income (loss) attributable to change from
prior year

(5,486)

8,885

Total recognized in net periodic benefit cost and other

comprehensive income (loss)
$
2,943

$
18,927

(Some amounts may not reconcile due to rounding.)

events. The estimated ~~transition obligation, actuarial loss and prior service cost that will be amortized~~industry level of insured losses is obtained from ~~accumulated other comprehensive income into net periodic benefit cost over the next year are $~~published estimates by an independent recognized authority on insured property losses.

F-39

~~0 thousand, $7,709 thousand and $0 thousand, respectively.~~

~~The weighted average discount rates used to determine net periodic benefit cost for 2020, 2019 and 2018 were 3.28%, 4.27% and 3.62%, respectively. The rate~~Table of ~~compensation increase used to determine the net periodic benefit cost for 2020, 2019 and 2018 was~~ Contents ~~4.00%. The expected long-term rate of return on plan assets was~~ ~~7.00% for 2020, 2019 and 2018 based on expected portfolio returns and allocations.~~

~~The weighted average discount rates used to determine the actuarial present value of the projected benefit obligation for years end 2020, 2019 and 2018 were 2.55%, 3.28% and 4.27%, respectively.~~

~~The following table summarizes the accumulated benefit obligation for the periods indicated:~~

At December 31,
(Dollars in thousands)
2020

2019
Qualified Plan
$
336,027

$
288,328
Non-qualified Plan

16,258

21,642
Total
$
352,285

$
309,970

(Some amounts may not reconcile due to rounding.)

~~The following table displays the plans with projected benefit obligations in excess of plan assets for the periods indicated:~~

F-49

At December 31,
(Dollars in thousands)
2020

2019
Qualified Plan

Projected benefit obligation
$
388,213

$
333,715
Fair value of plan assets

354,464

301,467
Non-qualified Plan

Projected benefit obligation
$
16,258

$
21,642
Fair value of plan assets

-

-

~~The following table displays the plans with accumulated benefit obligations in excess of plan assets for the periods indicated:~~

At December 31,
(Dollars in thousands)
2020

2019
Qualified Plan

Accumulated benefit obligation
$
-

$
-
Fair value of plan assets

-

-
Non-qualified Plan

Accumulated benefit obligation
$
16,258

$
21,642
Fair value of plan assets

-

-

~~The following table displays the expected benefit payments in the periods indicated:~~

(Dollars in thousands)

2021
$
11,757
2022

12,220
2023

13,064
2024

14,100
2025

15,190
Next 5 years

90,808

~~Plan assets consist of shares in investment trusts~~ ~~with 72%, 27%, 1% and 0% of the underlying assets consisting of equity securities, fixed maturities, limited partnerships and multi-strategy equity funds and cash, respectively.~~ The Company ~~manages the qualified plan investments for U.S. employees. The assets in the plan consist~~had up to $350 million of ~~debt and equity mutual funds. Due to the long term nature of the plan, the target asset allocation has historically been 70% equities and 30% bonds.~~

~~The following tables present the fair value measurement levels for the qualified plan assets~~catastrophe bond protection (“CAT Bond”) that attaches at ~~fair value for the periods indicated:~~

F-50

Fair Value Measurement Using:

Quoted Prices

in Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

December 31,

Assets

Inputs

Inputs
(Dollars in thousands)
2020

(Level 1)

(Level 2)

(Level 3)
Assets:

Short-term investments, which approximates fair value (a)
$
1,204

$
1,204

$
-

$
-
Mutual funds, fair value

Fixed income (b)

93,609

93,609

-

-
Equities (c)

255,054

255,054

-

-
Total
$
349,867

$
349,867

$
-

$
-

(Some amounts may not reconcile due to rounding.)

~~(a)~~a $48.1 billion Property Claims Services (“PCS”) Industry loss threshold. This ~~category includes high quality, short-term money market instruments, which are issued and payable in U.S. dollars.~~

~~(b) This category includes fixed income funds, which invest in investment grade securities of corporations, governments and government agencies with approximately 70% in U.S. securities and 30% in international securities.~~

(c) This category includes funds, which invest in small, mid and multi-cap equity securities including common stocks, securities convertible into common stock and securities with common stock characteristics, such as rights and warrants, with approximately 50 ~~% in U.S. equities and 50% in international equities.~~

~~There were no~~ ~~transfers between Level 1 and Level 2 for the twelve months ended December 31, 2020.~~

Fair Value Measurement Using:

Quoted Prices

in Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

December 31,

Assets

Inputs

Inputs
(Dollars in thousands)
2019

(Level 1)

(Level 2)

(Level 3)
Assets:

Short-term investments, which approximates fair value (a)
$
1,749

$
1,749

$
-

$
-
Mutual funds, fair value

Fixed income (b)

90,483

90,483

-

-
Equities (c)

188,884

188,884

-

-
Total
$
281,116

$
281,116

$
-

$
-

(Some amounts may not reconcile due to rounding.)

~~(a) This category includes high quality, short-term money market instruments, which are issued and payable in U.S. dollars.~~

~~(b) This category includes fixed income funds, which invest in investment grade securities of corporations, governments and government agencies with approximately 50% in U.S. securities and 50% in international securities.~~

F-51

~~In addition, $4,596~~ ~~thousand and $20,351~~ thousand of investments which were recorded as part of the qualified plan assets at December 31, 2020 and 2019, respectively, are not included within the fair value hierarchy tables as the assets are valued using the NAV practical expedient guidance within ASU 2015-07.

~~The Company contributed $~~0 ~~thousand to the qualified pension benefit plan for the years ended December 31, 2020 and 2019.~~

~~Defined Contribution Plans.~~

The Company also maintains both qualified and non-qualified defined contribution plans (“Savings Plan” and “Non-Qualified Savings Plan”, respectively) covering U.S. employees. Under the plans, the Company contributesrecovery would be recognized on a pro-rata basis up to a ~~maximum 3~~%$63.8 billion PCS Industry loss level. As a result of Hurricane Ian, PCS’s current industry estimate of $48.2 billion issued in February 2024 exceeds the attachment point. The potential recovery under the CAT Bond is not expected to be material. As a result, no portion of the ~~participants’ compensation based on~~potential CAT bond recovery has been included in the ~~contribution percentage~~Company’s current financial results.

Kilimanjaro has financed the various property catastrophe reinsurance coverages by issuing catastrophe bonds to unrelated, external investors. The proceeds from the issuance of the ~~employee. The Non-Qualified Savings Plan provides compensating savings plan benefits for participants whose benefits have been curtailed under~~Notes listed below are held in reinsurance trusts throughout the ~~Savings Plan due to Internal Revenue Code limitations. In addition, effective for new hires (and rehires) on or after April 1, 2010, the Company will contribute between 3% and 8% of an employee’s earnings for each payroll period based on the employee’s age. These contributions will be 100% vested after three year~~s.

~~The following table presents the Company’s incurred expenses related to these plans for the periods indicated:~~

Years Ended December 31,
(Dollars in thousands)
2020

2019

2018
Incurred expenses
$
14,386

$
10,794

$
9,301

In addition, the Company maintains several defined contribution pension plans covering non-U.S. employees. Each non-U.S. office (Brazil, Canada and Singapore) maintains a separate plan for the non-U.S. employees working in that location. The Company contributes various amounts based on salary, age and/or years of service. The contributions as a percentage of salary for the branch offices range from ~~7.9% to~~ ~~8.8%. The contributions are generally used to purchase pension benefits from local insurance providers.~~

~~The following table presents the Company’s incurred expenses related to these plans for the periods indicated:~~

Years Ended December 31,
(Dollars in thousands)
2020

2019

2018
Incurred expenses
$
774

$
474

$
489

~~Post-Retirement Plan.~~

The Company sponsors a Retiree Health Plan for employees employed prior to April 1, 2010. This plan provides healthcare benefits for eligible retired employees (and their eligible dependents), who have elected coverage. The Company anticipates that most covered employees will become eligible for these benefits if they retire while working for the Company. The cost of these benefits is shared with the retiree. The Company accrues the post-retirement benefit expense during the periodduration of the ~~employee’s service.~~

~~A medical cost trend rate~~applicable reinsurance agreements and invested solely in US government money market funds with a rating of ~~6.75% in 2020 was assumed to decrease gradually to 4.75% in 2030~~at least “AAAm” by Standard & Poor’s. The catastrophe bonds’ issue dates, maturity dates and ~~then remain at that level.~~

F-52

~~The following table presents the post-retirement benefit expenses for the periods indicated:~~

Years Ended December 31,
(Dollars in thousands)
2020

2019

2018
Post-retirement benefit expenses
$
1,334

$
1,231

$
1,829

~~The following table summarizes the status of this plan for the periods indicated:~~

At December 31,
(Dollars in thousands)
2020

2019
Change in projected benefit obligation:

Benefit obligation at beginning of year
$
29,376

$
28,483
Service cost

1,066

983
Interest cost

845

980
Amendments

-

-
Actuarial (gain)/loss

4,042

(582)
Benefits paid

(232)

(488)
Benefit obligation at end of year

35,098

29,376

Change in plan assets:

Fair value of plan assets at beginning of year

-

-
Employer contributions

232

488
Benefits paid

(232)

(488)
Fair value of plan assets at end of year

-

-

Funded status at end of year
$
(35,098)

$
(29,376)

~~Amounts recognized in the consolidated balance sheets for the periods indicated:~~

At December 31,
(Dollars in thousands)
2020

2019
Other liabilities (due within one year)
$
(613)

$
(611)
Other liabilities (due beyond one year)

(34,484)

(28,764)
Net amount recognized in the consolidated balance sheets
$
(35,098)

$
(29,376)

(Some amounts may not reconcile due to rounding.)

~~Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income (loss) for the periods indicated:~~

F-53

At December 31,
(Dollars in thousands)
2020

2019
Accumulated income (loss)
$
(3,854)

$
188
Accumulated prior service credit (cost)

2,327

2,904
Accumulated other comprehensive income (loss)
$
(1,527)

$
3,092

~~Other changes in other comprehensive income (loss) for the periods indicated are as follows:~~

Years Ended December 31,
(Dollars in thousands)
2020

2019
Other comprehensive income (loss) at December 31, prior year
$
3,092

$
3,242
Net gain (loss) arising during period

(4,042)

582
Prior Service credit (cost) arising during period

-

-
Recognition of amortizations in net periodic benefit cost:

Actuarial loss (gain)

-

(155)
Prior service cost

(577)

(577)
Other comprehensive income (loss) at December 31, current year
$
(1,527)

$
3,092

~~Net periodic benefit cost included the following components for the periods indicated:~~

Years Ended December 31,
(Dollars in thousands)
2020

2019

2018
Service cost
$
1,066

$
983

$
1,312
Interest cost

845

980

999
Prior service credit recognition

(577)

(577)

(577)
Net gain recognition

-

(155)

94
Net periodic cost
$
1,334

$
1,231

$
1,829

Other changes recognized in other comprehensive income (loss):

Other comprehensive gain (loss) attributable to change from prior year

4,619

150

Total recognized in net periodic benefit cost and

other comprehensive income (loss)
$
5,953

$
1,381

(Some amounts may not reconcile due to rounding.)

~~The estimated transition obligation, actuarial gain~~ ~~and prior service credit that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year are $0~~ ~~thousand, $46~~ ~~thousand and $577~~ ~~thousand, respectively.~~

~~The weighted average discount rates used to determine net periodic benefit cost for 2020, 2019 and 2018 were 3.28%, 4.27% and 3.62%, respectively.~~

~~The weighted average discount rates used to determine the actuarial present value of the projected benefit obligation at year end 2020, 2019 and 2018 were 2.55%, 3.28% and 4.27%, respectively.~~

F-54

~~The following table displays the expected benefit payments in the years indicated:~~

(Dollars in thousands)

2021
$
613
2022

715
2023

806
2024

851
2025

989
Next 5 years

6,955

~~14. DIVIDEND RESTRICTIONS AND STATUTORY FINANCIAL INFORMATION~~

Holdings and its operating subsidiaries are subject to various regulatory restrictions, including the amount of dividends that may be paid and the level of capital that the operating entities must maintain. These regulatory restrictions are based upon statutory capital as opposed to GAAP basis equity or net assets. Holdings’ primary operating subsidiary, Everest Re, is regulated by Delaware law and is subjectamounts correspond to the Risk-Based Capital Model (“RBC”) developed by the National Association of Insurance Commissioners (“NAIC”). This model represents the aggregate regulatory restrictions on net assets and statutory capital and surplus.

~~Dividend Restrictions.~~

Delaware law provides that an insurance company which is a member of an insurance holding company system and is domiciled in the state shall not pay dividends without giving prior notice to the Insurance Commissioner of Delaware and may not pay dividends without the approval of the Insurance Commissioner if the value of the proposed dividend, together with all other dividends and distributions made in the preceding twelve months, exceeds the greater of (1) 10 % of statutory surplus or (2) net income, not including realized capital gains, each as reported in the prior year’s statutory annual statement. In addition, no dividend may be paid in excess of unassigned earned surplus. At December 31, 2020, Everest Re has $592,082 ~~thousand available for payment of dividends in 2021 without the need for prior regulatory approval.~~

~~Statutory Financial Information.~~

Everest Re prepares its statutory financial statements in accordance with accounting practices prescribed or permitted by the NAIC and the Delaware Insurance Department. Prescribed statutory accounting practices are set forth in the NAIC Accounting Practices and Procedures Manual. The capital and statutory surplus of Everest Re was $5,276,003 ~~thousand and $3,739,140~~ ~~thousand at December 31, 2020 and 2019, respectively. The statutory net income of Everest Re was $595,077~~ ~~thousand and $363,034~~ ~~thousand, for the years ended December 31, 2020 and 2019, respectively. The statutory net loss of Everest Re was $1,317,991~~ ~~for the year ended December 31, 2018.~~

There are certain regulatory and contractual restrictions on the ability of Holdings’ operating subsidiaries to transfer funds to Holdings in the form of cash dividends, loans or advances. The insurance laws of the State of Delaware, where Holdings’ direct insurance subsidiaries are domiciled, require regulatory approval before those subsidiaries can pay dividends or make loans or advances to Holdings that exceed certain statutory thresholds.

~~Capital Restrictions.~~

~~In the United States, Everest Re is subject to the RBC developed by the NAIC which determines an authorized control level risk-based capital. As long as the total adjusted capital is 200% or more of the authorized control level capital, no action is required by the Company.~~

reinsurance agreements listed above.

F-55

~~The regulatory targeted capital and the actual statutory capital for Everest Re is as follows:~~

Everest Re ⁽¹⁾

At December 31,
(Dollars in thousands)
2020

2019
Regulatory targeted capital
$
2,489,772

$
2,001,226
Actual capital
$
5,276,003

$
3,739,140

⁽¹⁾~~Regulatory targeted capital represents 200% of the RBC authorized control level calculation for the applicable year.~~

~~15.~~ 11.COMMITMENTS AND C ~~ONTINGENCIES~~

CONTINGENCIES

Aside from litigation and arbitrations related to these insurance and reinsurance agreements, the Company is not a party to any other material litigation or arbitration.

The Company has entered into separate annuity agreements with The Prudential Insurance Company of America (“The Prudential”) ~~and~~an unaffiliated life insurance company, as well as an additional unaffiliated life insurance company in which the Company has either purchased annuity contracts or become the assignee of annuity proceeds that are meant to settle claim payment obligations in the future. In both instances, the Company would become contingently liable if either The Prudential or the unaffiliated life insurance company ~~were~~was unable to make payments related to the respective annuity contract.

The table below presents the estimated cost to replace all such annuities for which the Company was contingently liable for the periods indicated:


	At December 31,
(Dollars in millions)	2023		2022
The Prudential	$	136	$	137
Other unaffiliated life insurance company	34		34

12.LEASES

The Company enters into lease agreements for real estate that is primarily used for office space in the ordinary course of business. These leases are accounted for as operating leases, whereby lease expense is recognized on a straight-line basis over the term of the lease. Most leases include an option to extend or renew the lease term. The exercise of the renewal is at the Company’s discretion. The operating lease liability includes lease payments related to options to extend or renew the lease term if the Company is reasonably certain of exercise those options. The Company, in determining the present value of lease payments utilizes either the rate implicit in the lease if that rate is readily determinable or the Company’s incremental secured borrowing rate commensurate with terms of the underlying lease.

Supplemental information related to operating leases is as follows for the periods indicated:


	Year Ended December 31,
(Dollars in millions)	2023		2022
Lease expense incurred:
Operating lease cost	$	26	$	25

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Table of Contents

At December 31,
(Dollars in thousands)
2020

2019
The Prudential
$
140,773

$
141,703
Unaffiliated life insurance company

35,128

35,082


	At December 31,
(Dollars in millions)	2023		2022
Operating lease right of use assets (1)	$	111	$	121
Operating lease liabilities (1)	130		139

(1) Operating lease right of use assets and operating lease liabilities are included within other assets and other liabilities on the Company’s consolidated balance sheets, respectively.


	Year Ended December 31,
(Dollars in millions)	2023		2022
Operating cash flows from operating leases	$	(19)	$	(18)


	At December 31,
	2023		2022
Weighted average remaining operating lease term	10.3 years		11.1 years
Weighted average discount rate on operating leases	4.03	%	4.00	%

Maturities of the existing lease liabilities are expected to occur as follows:


(Dollars in millions)
2024	$	20
2025	16
2026	15
2027	14
2028	12
Thereafter	78
Undiscounted lease payments	155
Less: present value adjustment	26
Total operating lease liability	$	130

13.COMPREHENSIVE INCOME (LOSS)

The following table presents the components of comprehensive income (loss) in the consolidated statements of operations for the periods indicated:


	December 31, 2023						December 31, 2022						December 31, 2021
(Dollars in millions)	Before Tax		Tax Effect		Net of Tax		Before Tax		Tax Effect		Net of Tax		Before Tax		Tax Effect		Net of Tax
URA(D) on securities - temporary	$	473	(99)		$	374	$	(1,280)	269		$	(1,011)	$	(254)	53		$	(200)
Reclassification of net realized losses (gains) included in net income (loss)	193		(41)		153		93		(20)		73		12		(3)		9
Foreign currency translation adjustments	22		(5)		17		(23)		5		(18)		(11)		2		(9)
Benefit plan actuarial net gain (loss)	19		(4)		15		18		(4)		15		22		(5)		17
Reclassification of amortization of net gain (loss) included in net income (loss)	2		—		2		3		(1)		2		8		(2)		6
Total other comprehensive income (loss)	$	710	$	(149)	$	561	$	(1,189)	$	249	$	(939)	$	(223)	$	47	$	(177)

(Some amounts may not reconcile due to rounding)

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The following table presents details of the amounts reclassified from AOCI for the periods indicated:


	Years Ended December 31,				Affected line item within the statements of operations and comprehensive income (loss)
AOCI component	2023		2022
(Dollars in millions)
URA(D) on securities	$	193	$	93	Other net realized capital gains (losses)
	(41)		(20)		Income tax expense (benefit)
	$	153	$	73	Net income (loss)

Benefit plan net gain (loss)	$	2	$	3	Other underwriting expenses
	—		(1)		Income tax expense (benefit)
	$	2	$	2	Net income (loss)

(Some amounts may not reconcile due to rounding)

The following table presents the components of accumulated other comprehensive income (loss), net of tax, in the consolidated balance sheets for the periods indicated:


	Years Ended December 31,
(Dollars in millions)	2023		2022
Beginning balance of URA(D) on securities	$	(816)	$	122
Current period change in URA(D) of investments - temporary	527		(938)
Ending balance of URA(D) on securities	(289)		(816)

Beginning balance of foreign currency translation adjustments	2		20
Current period change in foreign currency translation adjustments	17		(18)
Ending balance of foreign currency translation adjustments	19		2

Beginning balance of benefit plan net gain (loss)	(33)		(50)
Current period change in benefit plan net gain (loss)	17		17
Ending balance of benefit plan net gain (loss)	(16)		(33)

Ending balance of accumulated other comprehensive income (loss)	$	(287)	$	(848)

(Some amounts may not reconcile due to rounding)

14.EMPLOYEE BENEFIT PLANS

Defined Benefit Pension Plans.

The Company maintains both qualified and non-qualified defined benefit pension plans for its U.S. employees employed prior to April 1, 2010. Generally, the Company computes the benefits based on average earnings over a period prescribed by the plans and credited length of service. The Company’s non-qualified defined benefit pension plan provided compensating pension benefits for participants whose benefits have been curtailed under the qualified plan due to Internal Revenue Code limitations. Effective January 1, 2018, participants of the Company’s non-qualified defined benefit pension plan no longer accrue additional service benefits.

Although not required to make contributions under IRS regulations, the following table summarizes the Company’s contributions to the defined benefit pension plans for the periods indicated:


	Years Ended December 31,
(Dollars in millions)	2023		2022		2021
Company contributions	$	1	$	6	$	4

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Table of Contents

The following table summarizes the Company’s pension expense for the periods indicated:


	Years Ended December 31,
(Dollars in millions)	2023		2022		2021
Pension expense	$	5	$	(2)	$	3

The following table summarizes the status of these defined benefit plans for U.S. employees for the periods indicated:


	Years Ended December 31,
(Dollars in millions)	2023		2022
Change in projected benefit obligation:
Benefit obligation at beginning of year	$	291	$	403
Service cost	5		9
Interest cost	14		10
Actuarial (gain)/loss	9		(115)
Curtailment	—		—
Benefits paid	(25)		(15)
Projected benefit obligation at end of year	295		291

Change in plan assets:
Fair value of plan assets at beginning of year	285		377
Actual return on plan assets	48		(83)
Actual contributions during the year	1		6
Benefits paid	(25)		(15)
Fair value of plan assets at end of year	308		285

Funded status at end of year	$	13	$	(6)

(Some amounts may not reconcile due to rounding.)

Amounts recognized in the consolidated balance sheets for the periods indicated:


	At December 31,
(Dollars in millions)	2023		2022
Other assets (due beyond one year)	$	19	$	1
Other liabilities (due within one year)	(3)		(1)
Other liabilities (due beyond one year)	(3)		(6)
Net amount recognized in the consolidated balance sheets	$	13	$	(6)

Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income (loss) for the periods indicated:


	At December 31,
(Dollars in millions)	2023		2022
Accumulated income (loss)	$	(33)	$	(56)
Accumulated other comprehensive income (loss)	$	(33)	$	(56)

(Some amounts may not reconcile due to rounding.)

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Table of Contents~~16.~~

Other changes in other comprehensive income (loss) for the periods indicated are as follows:

Years Ended December 31,
(Dollars in millions) 2023 2022
Other comprehensive income (loss) at December 31, prior year $ (56) $ (68)
Net gain (loss) arising during period 19 7
Recognition of amortizations in net periodic benefit cost:
Actuarial loss 4 4
Curtailment loss recognized — —
Other comprehensive income (loss) at December 31, current year $ (33) $ (56)

(Some amounts may not reconcile due to rounding.)

Net periodic benefit cost for U.S. employees included the following components for the periods indicated:

Years Ended December 31,
(Dollars in millions) 2023 2022 2021
Service cost $ 5 $ 9 $ 11
Interest cost 14 10 8
Expected return on assets (19) (25) (24)
Amortization of actuarial loss from earlier periods 4 4 8
Settlement — 1 —
Net periodic benefit cost $ 5 $ (2) $ 3
Other changes recognized in other comprehensive income (loss):
Other comprehensive income (loss) attributable to change from prior year (23) (12)
Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (18) $ (14)

(Some amounts may not reconcile due to rounding.)

The weighted average discount rates used to determine net periodic benefit cost for 2023, 2022 and 2021 were 5.25%, 2.86% and 2.55%, respectively. The rate of compensation increase used to determine the net periodic benefit cost for 2023, 2022 and 2021 was 4.00%. The expected long-term rate of return on plan assets for 2023, 2022 and 2021 was 7.00%, 6.75% and 7.00% respectively.

The weighted average discount rates used to determine the actuarial present value of the projected benefit obligation for 2023, 2022 and 2021 were 5.00%, 5.25% and 2.86%, respectively.

The following table summarizes the accumulated benefit obligation for the periods indicated:

At December 31,
(Dollars in millions) 2023 2022
Qualified Plan $ 263 $ 258
Non-qualified Plan 6 6
Total $ 269 $ 264

(Some amounts may not reconcile due to rounding.)

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Table of Contents
The following table displays the plans with projected benefit obligations in excess of plan assets for the periods indicated:
At December 31,
(Dollars in millions) 2023 2022
Qualified Plan
Projected benefit obligation $ 289 $ 284
Fair value of plan assets 308 285
Non-qualified Plan
Projected benefit obligation $ 6 $ 6
Fair value of plan assets — —
The following table displays the plans with accumulated benefit obligations in excess of plan assets for the periods indicated:
At December 31,
(Dollars in millions) 2023 2022
Qualified Plan
Accumulated benefit obligation $ — $ —
Fair value of plan assets — —
Non-qualified Plan
Accumulated benefit obligation 6 6
Fair value of plan assets $ — $ —
The following table displays the expected benefit payments in the periods indicated:
(Dollars in millions)
2024 $ 15
2025 14
2026 15
2027 16
2028 17
Next 5 years 99
Plan assets consist primarily of shares in investment trusts with 75%, 24% and 1% of the underlying assets consisting of equity securities, fixed maturities and cash, respectively. The Company manages the qualified plan investments for U.S. employees. The assets in the plan consist of debt and equity mutual funds. Due to the long-term nature of the plan, the target asset allocation has historically been 70% equities and 30% bonds.
The following tables present the fair value measurement levels for the qualified plan assets at fair value for the periods indicated:
Fair Value Measurement Using:
(Dollars in millions) December 31,
2023 Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1) Significant
Other
Observable
Inputs
(Level 2) Significant
Unobservable
Inputs
(Level 3)
Assets:
Short-term investments, which approximates fair value (a) $ 2 $ 2 $ — $ —
Mutual funds, fair value
Fixed income (b) 73 73 — —
Equities (c) 232 232 — —
Total $ 308 $ 308 $ — $ —
(Some amounts may not reconcile due to rounding.)
(a)This category includes high quality, short-term money market instruments, which are issued and payable in U.S. dollars.
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Table of Contents
(b)This category includes fixed income funds, which invest in investment grade securities of corporations, governments and government agencies with approximately 90% in U.S. securities and 10% in international securities.
(c)This category includes funds, which invest in small, mid and multi-cap equity securities including common stocks, securities convertible into common stock and securities with common stock characteristics, such as rights and warrants, with approximately 100% in U.S. equities.
Fair Value Measurement Using:
(Dollars in millions) December 31,
2022 Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1) Significant
Other
Observable
Inputs
(Level 2) Significant
Unobservable
Inputs
(Level 3)
Assets:
Short-term investments, which approximates fair value (a) $ 4 $ 4 $ — $ —
Mutual funds, fair value
Fixed income (b) 68 68 — —
Equities (c) 211 211 — —
Total $ 283 $ 283 $ — $ —
(Some amounts may not reconcile due to rounding.)
(a)This category includes high quality, short-term money market instruments, which are issued and payable in U.S. dollars.
(b)This category includes fixed income funds, which invest in investment grade securities of corporations, governments and government agencies with approximately 70% in U.S. securities and 30% in international securities.
(c)This category includes funds, which invest in small, mid and multi-cap equity securities including common stocks, securities convertible into common stock and securities with common stock characteristics, such as rights and warrants, with approximately 50% in U.S. equities and 50% in international equities.
In addition, $2 million of investments which were recorded as part of the qualified plan assets at December 31, 2022, are not included within the fair value hierarchy tables as the assets are valued using the NAV practical expedient guidance within ASU 2015-07.
No contributions were made to the qualified pension benefit plan for the years ended December 31, 2023 and 2022.
Defined Contribution Plans.
The Company also maintains both qualified and non-qualified defined contribution plans (“Savings Plan” and “Non-Qualified Savings Plan”, respectively) covering U.S. employees. Under the plans, the Company contributes up to a maximum 3% of the participants’ compensation based on the contribution percentage of the employee. The Non-Qualified Savings Plan provides compensating savings plan benefits for participants whose benefits have been curtailed under the Savings Plan due to Internal Revenue Code limitations. In addition, effective for new hires (and rehires) on or after April 1, 2010, the Company will contribute between 3% and 8% of an employee’s earnings for each payroll period based on the employee’s age. These contributions will be 100% vested after three years. The Company incurred expenses related to these plans of $22 million, $18 million and $15 million for the years ended December 31, 2023, 2022 and 2021, respectively.
In addition, the Company maintains several defined contribution pension plans covering non-U.S. employees. Each international office maintains a separate plan for the non-U.S. employees working in that location. The Company contributes various amounts based on salary, age and/or years of service. In the current year, the contributions as a percentage of salary for the international offices ranged from 7.5% to 9.3%. The contributions are generally used to purchase pension benefits from local insurance providers. The Company incurred expenses related to these plans of $0.7 million, $0.7 million and $0.6 million for the years ended December 31, 2023, 2022 and 2021, respectively.
Post-Retirement Plan.
The Company sponsors a Retiree Health Plan for employees employed prior to April 1, 2010. This plan provides healthcare benefits for eligible retired employees (and their eligible dependents), who have elected coverage. The Company anticipates that most covered employees will become eligible for these benefits if they retire while working for the Company. The cost of these benefits is shared with the retiree. The Company accrues the post-retirement benefit expense during the period of the employee’s service. A medical cost trend rate of 6.75% in 2023 was assumed to decrease gradually to 4.75% in 2030 and then remain at that level. The Company incurred expenses of $(1) million, $1 million and $1 million for the years ended December 31, 2023, 2022 and 2021, respectively.
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Table of Contents
The following table summarizes the status of this plan for the periods indicated:
At December 31,
(Dollars in millions) 2023 2022
Change in projected benefit obligation:
Benefit obligation at beginning of year $ 21 $ 31
Service cost 1 1
Interest cost 1 1
Amendments — —
Actuarial (gain)/loss (1) (10)
Benefits paid — —
Benefit obligation at end of year 22 21
Change in plan assets:
Fair value of plan assets at beginning of year — —
Employer contributions — —
Benefits paid — —
Fair value of plan assets at end of year — —
Funded status at end of year $ (22) $ (21)
Amounts recognized in the consolidated balance sheets for the periods indicated:
At December 31,
(Dollars in millions) 2023 2022
Other liabilities (due within one year) $ (1) $ (1)
Other liabilities (due beyond one year) (21) (21)
Net amount recognized in the consolidated balance sheets $ (22) $ (21)
(Some amounts may not reconcile due to rounding.)
Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income (loss) for the periods indicated:
At December 31,
(Dollars in millions) 2023 2022
Accumulated income (loss) $ 11 $ 13
Accumulated prior service credit (cost) 1 1
Accumulated other comprehensive income (loss) $ 12 $ 14
Other changes in other comprehensive income (loss) for the periods indicated are as follows:
Years Ended December 31,
(Dollars in millions) 2023 2022
Other comprehensive income (loss) at December 31, prior year $ 14 $ 4
Net gain (loss) arising during period 1 10
Prior Service credit (cost) arising during period — —
Recognition of amortizations in net periodic benefit cost:
Actuarial loss (gain) (2) —
Prior service cost — —
Other comprehensive income (loss) at December 31, current year $ 12 $ 14
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Net periodic benefit cost included the following components for the periods indicated:
Years Ended December 31,
(Dollars in millions) 2023 2022 2021
Service cost $ 1 $ 1 $ 1
Interest cost 1 1 1
Prior service credit recognition — — (1)
Net gain recognition (2) — —
Net periodic cost $ (1) $ 1 $ 1
Other changes recognized in other comprehensive income (loss):
Other comprehensive gain (loss) attributable to change from prior year 2 (10)
Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 1 $ (9)
(Some amounts may not reconcile due to rounding.)
The weighted average discount rates used to determine net periodic benefit cost for 2023, 2022 and 2021 were 5.25%, 2.86% and 2.55%, respectively.
The weighted average discount rates used to determine the actuarial present value of the projected benefit obligation at year end 2023, 2022 and 2021 were 5.00%, 5.25% and 2.86%, respectively.
The following table displays the expected benefit payments in the years indicated:
(Dollars in millions)
2024 $ 1
2025 1
2026 1
2027 1
2028 1
Next 5 years 7

15.RELATED-PARTY TRANSACTIONS

~~Group~~

The table below displays long-term note agreements that Group entered into ~~a $300,000~~ ~~thousand long term note agreement~~ with Everest Re ~~as of December 17, 2019. The note will pay interest annually at a rate of 1.69% and is scheduled to mature in December, 2028. This transaction is~~for the periods indicated. These transactions are presented as ~~a Note~~Notes Receivable – Affiliated in the Consolidated Balance Sheet of Holdings. ~~The Company recognized interest income related to this long term~~All note agreements listed were repaid in full during the second quarter of ~~$5,155~~ ~~thousand~~2023 and ~~$211~~ ~~thousand for years ended December 31, 2020 and 2019, respectively.~~

~~Group entered into a $250,000~~ ~~thousand long term promissory note agreement with Holdings~~are no longer outstanding as of December 31, ~~2014.~~2023. The ~~note was repaid~~fair value of these long-term notes is considered Level 2 in ~~December 2018, including $4,085~~the fair value hierarchy.


					December 31, 2023				December 31, 2022
(Dollars in millions)	Date Issued	Date Due	Principal Amounts		Consolidated Balance Sheet Amount		Fair Value		Consolidated Balance Sheet Amount		Fair Value
1.69% Long-term Note	12/17/2019	12/17/2028	$	300	$	—	$	—	$	300	$	242
1.00% Long-term Note	8/5/2021	8/5/2030	200		—		—		200		151
3.11% Long-term Note	6/14/2022	6/14/2052	215		—		—		215		171
4.34% Long-term Note	12/12/2022	12/12/2052	125		—		—		125		125
			$	840	$	—	$	—	$	840	$	689

(Some amounts may not reconcile due to rounding.)

F-48

~~thousand~~Table of ~~interest income.~~

F-56

Contents

Group’s Board of Directors approved an amended share repurchase program authorizing Group and/or its subsidiary Holdings to purchase Group’s common shares through open market transactions, privately negotiated transactions or both. The table below represents the amendments to the share repurchase programInterest income recognized in connection with these long-term notes is as follows for the ~~common shares approved for repurchase.~~

periods indicated:

		~~Common~~
		~~Shares~~
		~~Authorized for~~
~~Amendment Date~~		~~Repurchase~~
~~(Dollars in thousands)~~
~~09/21/2004~~		~~5,000,000~~
~~07/21/2008~~		~~5,000,000~~
~~02/24/2010~~		~~5,000,000~~
~~02/22/2012~~		~~5,000,000~~
~~05/15/2013~~		~~5,000,000~~
~~11/19/2014~~		~~5,000,000~~
~~05/22/2020~~		~~2,000,000~~
		~~32,000,000~~


			Years Ended December 31,
(Dollars in millions)	Interest Received	Receivable Dates	2023		2022		2021
1.69% Long-term Note	annually	December 17	$	2	$	5	$	5
1.00% Long-term Note	annually	August 5	1		2		1
3.11% Long-term Note	annually	June 14	5		4		—
4.34% Long-term Note	annually	December 12	—		—		—
			$	7	$	11	$	6

(Some amounts may not reconcile due to rounding.)

Holdings ~~had purchased and held~~ ~~9,719,971 Common Shares of Group, which were purchased in the open market between February 2007 and March 2011.~~

~~In December, 2015, Holdings transferred the 9,719,971~~ ~~Common Shares of Group, which it held as other invested assets, at fair value, valued at $1,773,214~~ ~~thousand, to Preferred Holdings, an affiliated entity and subsidiary of Group, in exchange for~~holds 1,773.214 preferred shares of Preferred Holdings with a ~~$1,000~~ ~~thousand~~$1 million par value and ~~1.75~~%1.75% annual dividend rate. Holdings received these shares in December 2015 in exchange for previously held 9,719,971 Common Shares of Group. After the exchange, Holdings no longer holds any shares or has any ownership interest in Group.

Holdings has reported the preferred shares in Preferred Holdings, as other invested assets, fair value, in the consolidated balance sheets with changes in fair value re-measurement recorded in net realized capital gains (losses) in the consolidated statements of operations and comprehensive income (loss). The following table presents the dividends received on the preferred shares of Preferred Holdings and on the Parent shares that are reported as net investment income in the consolidated statements of operations and comprehensive income (loss) for the ~~period indicated.~~

periods indicated:

	Years Ended December 31,
(Dollars in thousands)	2020		2019		2018
	Years Ended December 31,									Years Ended December 31,
(Dollars in millions)							(Dollars in millions)	2023	2022		2021
Dividends received on preferred stock of affiliate	$	31,032	$	31,032	$	31,032

Affiliated Companies

~~Effective December 31, 2018, Holdings entered into a $300,000~~ thousand long-term promissory note agreement with Bermuda Re. The note was repaid in May, 2019. This transaction was presented as a Note Payable – Affiliated in the consolidated balance sheets of Holdings as of December 31, 2018. Interest expense in the amount of $0 ~~thousand and $3,658~~ ~~thousand was recorded by Holdings for the years ended December 2020 and 2019, respectively.~~

~~Effective October 1, 2018, Holdings Ireland made a capital contribution of Global Services, an affiliated entity, to Holdings. Global Services had an equity value of $227,253~~ ~~thousand at the time of contribution and that value is classified as additional paid in capital in the Company’s consolidated balance sheet as of December 31, 2018.~~

Everest Global Services, Inc. (“Global Services”), an affiliate of Holdings, provides centralized management and home office services, through a management agreement, to Holdings and other affiliated companies within Holdings’ consolidated structure. Services provided by Everest Global include executive managerial services, legal services, actuarial services, accounting services, information technology services and others.

F-57

The following table presents the expenses incurred by Holdings from services provided by Everest Global for the periods indicated.

	Years Ended December 31,
(Dollars in thousands)	2020		2019		2018
	Years Ended December 31,									Years Ended December 31,
(Dollars in millions)							(Dollars in millions)	2023	2022		2021
Expenses incurred	$	124,486	$	107,851	$	81,346

17 ~~. SEGMENT REPORTING~~

16.INCOME TAXES

All of the income of Holdings U.S. subsidiaries, including its foreign branches, is subject to the applicable federal, foreign, state, and local income taxes on corporations. The Reinsurance operation writes worldwide property and casualty reinsurance and specialty lines of business, on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies. Business is writtenprovision for income taxes in the ~~United States as well as through branches in Canada~~consolidated statement of operations and ~~Singapore. The Insurance operation writes property~~comprehensive income (loss) has been determined by applying the respective tax laws to the income of each entity.

On August 16, 2022, the Inflation Reduction Act of 2022 (“IRA”) was enacted. We have evaluated the tax provisions of the IRA, the most significant of which are the corporate alternative minimum tax and ~~casualty insurance directly~~the share repurchase excise tax, and ~~through brokers, surplus lines brokers and general agents within~~do not expect the ~~United States.~~

~~These segments are managed independently, but conform with corporate guidelines with respect~~legislation to pricing, risk management, control of aggregate catastrophe exposures, capital, investments and support operations. Management generally monitors and evaluates the financial performance of these operating segments based upon their underwriting results.

~~Underwriting results include earned premium less losses and LAE incurred, commission and brokerage expenses and other underwriting expenses. We measure~~have a material impact on our underwriting results using ratios, in particular loss, commission and brokerage and other underwriting expense ratios, which, respectively, divide incurred losses, commissions and brokerage and other underwriting expenses by premiums earned.

~~The Company does not maintain separate balance sheet data for its operating segments. Accordingly, the Company does not review and evaluate the financial~~ results of ~~its operating segments based upon balance sheet data.~~

operations.

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Table of Contents

The ~~following tables present~~significant components of the ~~underwriting results for the operating segments~~provision are as follows for the periods indicated:

Reinsurance
Years Ended December 31,
(Dollars in thousands)
2020

2019

2018
Gross written premiums
$
5,265,698

$
4,600,373

$
4,569,582
Net written premiums

4,632,265

3,923,799

3,519,704
Premiums earned
$
4,484,693

$
3,796,136

$
3,386,386
Incurred losses and LAE

3,209,160

2,692,680

3,811,747
Commission and brokerage

1,119,966

1,027,286

923,902
Other underwriting expenses

119,320

110,032

97,927
Underwriting gain (loss)
$
36,247

$
(33,862)

$
(1,447,190)


	Years Ended December 31,
(Dollars in millions)	2023		2022		2021
Current tax expense (benefit):
U.S.	$	284	$	95	$	102
Foreign	—		—		—
Total current tax expense (benefit)	284		95		102
Total deferred U.S. tax expense (benefit)	(74)		(207)		90
Total income tax expense (benefit)	$	210	$	(112)	$	192

Insurance
Years Ended December 31,
(Dollars in thousands)
2020

2019

2018
Gross written premiums
$
2,691,340

$
2,452,691

$
2,004,093
Net written premiums

2,006,435

1,851,150

1,512,158
Premiums earned
$
1,921,883

$
1,692,899

$
1,452,672
Incurred losses and LAE

1,398,984

1,136,442

999,271
Commission and brokerage

253,389

242,767

217,812
Other underwriting expenses

281,713

240,869

195,420
Underwriting gain (loss)
$
(12,203)

$
72,821

$
40,169

F-58

~~The following table reconciles~~A reconciliation of the ~~underwriting results~~total income tax provision using the statutory U.S. Federal Income tax rate to the Company’s total income tax provision is as follows for the ~~operating segments~~periods indicated:


	Years Ended December 31,
(Dollars in millions)	2023		2022		2021
Expected income tax provision at the U.S. statutory tax rate	$	248	$	(117)	$	208
Increase (reduction) in taxes resulting from:
Tax exempt income	(3)		(4)		(4)
Dividend received deduction	(2)		(3)		(1)
Proration	1		1		1
Creditable foreign premium tax	(14)		(11)		(13)
Reserve adjustment	—		(19)		—
U.S. BEAT tax	—		22		—
Share based compensation	(3)		(3)		(2)
Prior year true up	(21)		16		—
Insurance company-owned life insurance	(13)		(1)		—
Other	17		7		3
Total income tax provision	$	210	$	(112)	$	192

(Some amounts may not reconcile due to rounding.)

At December 31, 2023, 2022 and 2021, the Company had no uncertain tax positions.

The Company’s 2014 through 2018 U.S. tax years are under audit by the Internal Revenue Service (“IRS”). Over several years, the Company had received and responded to a significant number of Information Document Requests (“IDRs”). In 2023, the IRS issued several insignificant Notice(s) of Proposed Adjustment. The Company had filed amended tax returns requesting refunds for 2015 and 2016 for $2 million and $5 million, respectively.

In the fall of 2023, the IRS issued a final Revenue Agent Report (“RAR”) which is under review by the Company.We have asked for and received an extension from the IRS to complete our review. Note that the IRS requested, and we have signed, an extension of the audit to June 30, 2025.

For tax year 2019, the Statute of Limitations has expired and, thus, the Federal income ~~(loss) before~~tax return for the year is no longer subject to IRS examination except to the extent the Company files an amended return.

Tax years 2020, 2021, and 2022 are open for examination by the IRS.

F-50

Table of Contents

Deferred income taxes reflect the tax effect of the temporary differences between the value of assets and liabilities for financial statement purposes and such values as ~~reported~~measured by U.S. tax laws and regulations. The principal items making up the net deferred income tax assets/(liabilities) are as follows for the periods indicated:


	At December 31,
(Dollars in millions)	2023		2022
Deferred tax assets:
Loss reserves	$	154	$	154
Unearned premium reserve	143		114
Net unrealized investment losses	66		200
Depreciation	44		—
Lease Liability	27		29
Unrealized foreign currency losses	15		24
Investment impairments	12		12
Equity compensation	8		7
Amortization	7		—
Net unrecognized losses on benefit plans	4		9
Foreign tax credits	—		3
Other assets	17		12
Total deferred tax assets	497		564

Deferred tax liabilities:
Deferred acquisition costs	139		105
Net fair value income	136		141
Partnership Investments	49		56
Right of use asset	23		25
Bond market discount	9		5
Depreciation	—		16
Other liabilities	5		6
Total deferred tax liabilities	361		354

Net deferred tax assets/(liabilities)	$	136	$	210

(Some amounts may not reconcile due to rounding.)

At December 31, 2023, and 2022, the Company had $0 million and $3 million respectively of foreign tax credit (“FTC”) carryforwards, all related to the branch basket. The branch basket FTCs begin to expire in 2030.

Tax effected U.S. Separate Return Limitation Year Net Operating Losses (“NOLs”) of $1 million begin to expire in 2037. At December 31, 2023 there is a $1 million valuation allowance offsetting the U.S. Separate Return Limitation NOLs.

At December 31, 2023, $66 million of the Company’s deferred tax asset relates primarily to unrealized losses on available for sale fixed maturity securities. The unrealized losses on available for sale fixed maturity securities were a result of market conditions, including rising interest rates. Ultimate realization of the deferred tax asset depends on the Company’s ability and intent to hold the available for sale securities until they recover their value or mature. As of December 31, 2023, based on all the available evidence, the Company has concluded that the deferred tax asset related to the unrealized losses on the available for sale fixed maturity portfolio are, more likely than not, expect to be realized.

The Company follows ASU 2016-09 in regard to the treatment of the tax effects of share-based compensation transactions. ASU 2016-09 required that the income tax effects of restricted stock vestings and stock option exercises resulting from the change in value of share-based compensation awards between the grant date and settlement (vesting/exercising) date be recorded as part of income tax expense (benefit) within the consolidated statements of operations and comprehensive income (loss). Per ASU 2016-09, the Company recorded excess tax benefits of $3 million, $3 million and $2 million related to restricted stock vestings and stock option exercises as part of income tax expense (benefit) within the consolidated statements of operations and comprehensive income (loss) in 2023, 2022 and 2021, respectively.

ASU 2016-09 does not impact the accounting treatment of tax benefits related to dividends on restricted stock. The tax benefits related to the payment of dividends on restricted stock have been recorded as part of additional paid-in capital

F-51

Table of Contents

in the stockholder’s equity section of the consolidated balance sheets in all years. The tax benefits related to the payment of dividends on restricted stock were $0.4 million, $0.4 million and $0.4 million in 2023, 2022 and 2021, respectively.

17.DIVIDEND RESTRICTIONS AND STATUTORY FINANCIAL INFORMATION

Holdings and its operating subsidiaries are subject to various regulatory restrictions, including the amount of dividends that may be paid and the level of capital that the operating entities must maintain. These regulatory restrictions are based upon statutory capital as opposed to GAAP basis equity or net assets. Holdings’ primary operating subsidiary, Everest Re, is regulated by Delaware law and is subject to the Risk-Based Capital Model (“RBC”) developed by the National Association of Insurance Commissioners (“NAIC”). This model represents the aggregate regulatory restrictions on net assets and statutory capital and surplus.

Dividend Restrictions.

Delaware law provides that an insurance company which is a member of an insurance holding company system and is domiciled in the state shall not pay dividends without giving prior notice to the Insurance Commissioner of Delaware and may not pay dividends without the approval of the Insurance Commissioner if the value of the proposed dividend, together with all other dividends and distributions made in the preceding twelve months, exceeds the greater of (1) 10% of statutory surplus or (2) net income, not including realized capital gains, each as reported in the prior year’s statutory annual statement. In addition, no dividend may be paid in excess of unassigned earned surplus. Accordingly, as of December 31, 2023, the maximum amount that will be available for the ~~periods indicated:~~

payment of dividends by Everest Re without triggering the requirement for prior approval of regulatory authorities in connection with a dividend is $877 million.

Years Ended December 31,
(Dollars in thousands)
2020

2019

2018
Underwriting gain (loss)
$
24,044

$
38,959

$
(1,407,021)
Net investment income

375,906

356,211

314,381
Net realized capital gains (losses)

49,804

419,367

(185,356)
Corporate expense

(15,985)

(13,063)

(11,034)
Interest, fee and bond issue cost amortization expense

(35,659)

(34,931)

(30,611)
Other income (expense)

(14,579)

(1,589)

(9,568)
Income (loss) before taxes
$
383,531

$
764,955

$
(1,329,209)
Statutory Financial Information.

~~The Company produces business~~

Everest Re prepares its statutory financial statements in accordance with accounting practices prescribed or permitted by the NAIC and the Delaware Insurance Department. Prescribed statutory accounting practices are set forth in the ~~U.S.~~NAIC Accounting Practices and ~~internationally.~~Procedures Manual. The capital and statutory surplus of Everest Re was $7.0 billion and $5.6 billion at December 31, 2023 and 2022, respectively. The statutory net income ~~deriving from assets residing~~of Everest Re was $877 million, $294 million and $264 million for the years ended December 31, 2023, 2022 and 2021, respectively.

There are certain regulatory and contractual restrictions on the ability of Holdings’ operating subsidiaries to transfer funds to Holdings in the ~~individual foreign countries in~~form of cash dividends, loans or advances. The insurance laws of the State of Delaware, where Holdings’ direct insurance subsidiaries are domiciled, require regulatory approval before those subsidiaries can pay dividends or make loans or advances to Holdings that exceed certain statutory thresholds.

Capital Restrictions.

In the United States, Everest Re is subject to the RBC developed by the NAIC which determines an authorized control level risk-based capital. As long as the ~~Company writes business are not identifiable in~~total adjusted capital is 200% or more of the ~~Company’s financial records. Based on gross written premium,~~authorized control level capital, no action is required by the ~~table below presents~~Company.

The regulatory targeted capital and the ~~largest country, other than~~actual statutory capital for Everest Re is as follows:


	Everest Re (1)
	At December 31,
(Dollars in millions)	2023		2022
Regulatory targeted capital	$	4,242	$	3,353
Actual capital	$	6,963	$	5,553

(1)Regulatory targeted capital represents 200% of the ~~U.S., in which the Company writes business,~~RBC authorized control level calculation for the ~~periods indicated:~~

applicable year.

Years Ended December 31,
(Dollars in thousands)
2020

2019

2018
Canada gross written premiums
$
320,665

$
214,594

$
173,530

~~No other country represented more than~~ 5 ~~% of the Company’s revenues.~~

~~Approximately 20.1%, 25.8% and 21.1% of the Company’s gross written premiums in 2020, 2019 and 2018, respectively, were sourced through the Company’s largest intermediary.~~

18 .

18.SUBSEQUENT EVENTS

The Company has evaluated known recognized and non-recognized subsequent events. ~~In February 2021, a severe winter storm impacted Texas~~The Company does not have any subsequent events to report.

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Table of Contents

SCHEDULE I - SUMMARY OF INVESTMENTS -

OTHER THAN INVESTMENTS IN RELATED PARTIES

DECEMBER 31, 2023


Column A	Column B		Column C		Column D
(Dollars in millions)	Cost		Market Value		Amount Shown in Balance Sheet
Fixed maturities - available for sale
Bonds:
U.S. government and government agencies	$	265	$	247	$	247
State, municipalities and political subdivisions	138		128		128
Foreign government securities	859		835		835
Foreign corporate securities	1,807		1,759		1,759
Public utilities	238		231		231
All other corporate bonds	8,990		8,907		8,907
Mortgage - backed securities
Commercial	575		522		522
Agency residential	2,531		2,435		2,435
Non-agency residential	429		441		441
Redeemable preferred stock	474		427		427
Total fixed maturities - available for sale	16,305		15,932		15,932

Fixed maturities - held to maturity
Bonds:
Foreign corporate securities	84		90		83
Public utilities	4		5		4
All other corporate bonds	750		733		743
Mortgage - backed securities
Commercial	21		21		21
Total Fixed maturities - held to maturity	859		850		851
Equity securities at fair value (1)	91		91		91
Short-term investments	1,298		1,298		1,298
Other invested assets	3,259		3,259		3,259
Other invested assets, at fair value (1)	1,773		1,481		1,481
Cash	527		527		527
Total investments and cash	$	24,111	$	23,437	$	23,439

(Some amounts may not reconcile due to rounding.)

(1)Original cost does not reflect fair value adjustments, which have been realized through the statements of operations and ~~other southern states. Due to the recentness~~comprehensive income (loss).

S-1

Table of this event, the Company is unable to estimate the amount of losses at this time. However, the Company anticipates that the losses from this event will adversely impact first quarter 2021 financial statements.

Contents

~~19.~~ ~~UNAUDITED QUARTERLY FINANCIAL DATA~~

~~Summarized quarterly financial data for the periods indicated:~~

2020
(Dollars in thousands)
1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Operating data:

Gross written premiums
$
1,974,965

$
1,838,247

$
2,064,961

$
2,078,865
Net written premiums

1,638,708

1,501,550

1,725,701

1,772,741

Premiums earned

1,494,005

1,538,960

1,615,457

1,758,154
Net investment income

74,201

35,153

135,428

131,124
Net realized capital gains (losses)

256,867

(479,360)

115,193

157,104
Total claims and underwriting expenses

1,465,006

1,436,098

1,720,362

1,812,710
Net income (loss)

316,645

(270,593)

119,806

186,015

F-59

2019
(Dollars in thousands)
1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Operating data:

Gross written premiums
$
1,684,882

$
1,688,038

$
1,890,002

$
1,790,142
Net written premiums

1,392,243

1,319,865

1,569,954

1,492,886

Premiums earned

1,270,454

1,375,623

1,428,400

1,414,558
Net investment income

84,534

90,709

95,592

85,376
Net realized capital gains (losses)

135,056

142,563

112,542

29,206
Total claims and underwriting expenses

1,174,175

1,255,551

1,562,452

1,505,892
Net income (loss)

251,608

280,922

61,137

36,060

F-60

SCHEDULE I - SUMMARY OF INVESTMENTS -

OTHER THAN INVESTMENTS IN RELATED PARTIES

DECEMBER 31, 2020

Column A

Column B

Column C

Column D

Amount

Shown in

Market

Balance
(Dollars in thousands)

Cost

Value

Sheet
Fixed maturities-available for sale

Bonds:

U.S. government and government agencies
$
659,957

$
681,989

$
681,989
State, municipalities and political subdivisions

543,646

577,046

577,046
Foreign government securities

694,132

742,238

742,238
Foreign corporate securities

1,130,865

1,199,866

1,199,866
Public utilities

113,206

120,749

120,749
All other corporate bonds

5,645,979

5,796,383

5,796,383
Mortgage - backed securities

Commercial

512,388

550,080

550,080
Agency residential

937,166

965,100

965,100
Non-agency residential

3,164

3,164

3,164
Redeemable preferred stock

8,147

6,950

6,950
Total fixed maturities-available for sale

10,248,650

10,643,565

10,643,565
Equity securities at fair value(1)

927,324

1,288,767

1,288,767
Short-term investments

708,043

707,905

707,905
Other invested assets

1,094,933

1,094,933

1,094,933
Other invested assets, at fair value (1)

1,773,214

1,796,479

1,796,479
Cash

378,518

378,518

378,518
Total investments and cash
$
15,130,682

$
15,910,167

$
15,910,167

(Some amounts may not reconcile due to rounding.)

(1) Original cost does not reflect adjustments, which have been realized through the statements of operations and comprehensive income.

S-1

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

CONDENSED BALANCE SHEETS

At December 31,
(Dollars in thousands, except share amounts and par value per share)
2020

2019
ASSETS:

Fixed maturities - available for sale, at market value
$
-

$
1,750
(amortized cost: 2020, $0; 2019, $1,750)

Equity securities - available for sale, at fair value

311,009

75,585
Other invested assets

146,968

56,909
Other invested assets, at fair value

1,796,479

1,982,582
Short-term investments

9,985

20,514
Cash

10,482

10,384
Total investments and cash

2,274,923

2,147,724
Investment in subsidiaries, at equity in the underlying net assets

6,115,130

4,580,852
Note receivable - affiliated

-

10,000
Accrued investment income

87

573
Advances to affiliates

165

(39)
Other assets

(104)

162
TOTAL ASSETS
$
8,390,201

$
6,739,272

LIABILITIES:

Senior notes due 6/1/2044
$
397,194

$
397,074
Senior notes due 10/15/2050

979,524

-
Long term notes due 5/1/2067

223,674

236,758
Accrued interest on debt and borrowings

10,388

2,878
Income taxes

362,393

243,062
Due to affiliates

1,835

1,016
Other liabilities

880

1,059
Total liabilities
$
1,975,888

$
881,847

STOCKHOLDER'S EQUITY:

Common stock, par value: $0.01; 3,000 shares authorized;

1,000 shares issued and outstanding (2020 and 2019)

-

-
Additional paid-in capital

1,101,092

1,100,678
Accumulated other comprehensive income (loss), net of deferred income

tax expense (benefit) of $71,080 at 2020 and $16,997 at 2019

268,018

64,324
Retained earnings

5,045,203

4,692,423
Total stockholder's equity

6,414,313

5,857,425
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY
$
8,390,201

$
6,739,272

See notes to consolidated financial statements.

S-2

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

CONDENSED STATEMENTS OF OPERATIONS

Years Ended December 31,
(Dollars in thousands)
2020

2019

2018
REVENUES:

Net investment income
$
26,021

$
34,970

$
38,951
Net investment income - Affiliated

320

412

4,085
Net realized capital gains (losses)

(73,338)

274,110

(87,267)
Other income (expense)

3,105

524

(6,085)
Net income (loss) of subsidiaries

393,552

370,084

(906,211)
Total revenues

349,659

680,100

(956,527)

EXPENSES:

Interest expense

35,508

34,931

30,611
Corporate expense

9,392

6,810

6,337
Total expenses

44,900

41,741

36,948

INCOME (LOSS) BEFORE TAXES

304,760

638,359

(993,475)
Income tax expense (benefit)

(47,113)

8,632

(31,291)

NET INCOME (LOSS)
$
351,873

$
629,727

$
(962,184)

Other comprehensive income (loss), net of tax :

Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period

163,080

175,482

(92,966)
Less: reclassification adjustment for realized losses (gains) included in net income (loss)

25,468

5,080

2,021
Total URA(D) on securities arising during the period

188,548

180,562

(90,945)

Foreign currency translation adjustments

14,461

17,153

(36,431)

Benefit plan actuarial net gain (loss) for the period

(5,615)

(12,591)

(510)
Reclassification adjustment for amortization of net (gain) loss included in net income (loss)

6,300

5,453

5,021
Total benefit plan net gain (loss) for the period

685

(7,138)

4,511
Total other comprehensive income (loss), net of tax

203,694

190,577

(122,865)

COMPREHENSIVE INCOME (LOSS)
$
555,567

$
820,304

$
(1,085,049)

See notes to consolidated financial statements.

S-3

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

CONDENSED STATEMENTS OF CASH FLOWS

Years Ended December 31,

(Dollars in thousands)
2020

2019

2018

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)
$
351,873

$
629,727

$
(962,184)

Adjustments to reconcile net income to net cash provided by operating activities:

Equity in (earnings) deficit of subsidiaries

(393,552)

(370,084)

906,211

Dividends received from subsidiary

-

300,000

90,000

Increase (decrease) in income taxes

119,331

40,695

4,687

Change in equity adjustments in limited partnerships

8,491

2,468

(2,617)

Change in other assets and liabilities, net

20,179

(16,615)

(20,450)

Amortization of bond premium (accrual of bond discount)

63

13

370

Net realized capital losses (gains)

73,338

(274,110)

87,267

Net cash provided by (used in) operating activities

179,722

312,094

103,284

CASH FLOWS FROM INVESTING ACTIVITIES:

Additional investment in subsidiaries

(949,464)

15,174

(1,383,659)

Proceeds from fixed maturities matured/called - available for sale, at market value

1,750

-

9,385

Proceeds from fixed maturities sold - available for sale, at market value

-

12,000

96,836

Proceeds from equity maturities sold - at fair value

61,883

18,905

182,552

Distributions from other invested assets

1,113,176

389,200

1,401,606

Cost of fixed maturities acquired - available for sale, at market value

-

-

(13,510)

Cost of equity securities acquired - at fair value

(184,542)

(32,597)

(39,449)

Cost of other invested assets acquired

(1,211,726)

(388,598)

(1,407,352)

Net change in short-term investments

10,529

(16,403)

396

Net change in unsettled securities transaction

-

-

(99)

Proceeds from repayment (cost of issuance) of note receivable, affiliated

10,000

(10,000)

250,000

Net cash provided by (used in) investing activities

(1,148,394)

(12,319)

(903,294)

CASH FLOWS FROM FINANCING ACTIVITIES:

Capital contribution from parent

-

-

500,324

Proceeds from issuance of senior notes

979,417

-

-

Cost of debt repurchase

(10,647)

-

-

Proceeds from issuance (cost of repayment) for note payable, affiliated

-

(300,000)

300,000

Net cash provided by (used in) financing activities

968,770

(300,000)

800,324

Net increase (decrease) in cash

98

(225)

314

Cash, beginning of period

10,384

10,609

10,295

Cash, end of period
$
10,482

$
10,384

$
10,609

Non-cash financing transaction:

Equity value of non-cash capital contribution of affiliate from

parent, net of cash held by affiliate
$
-

$
-

$
211,928

Non-cash contribution from parent

-

-

221

Non-cash contribution to subsidiaries

-

-

(221)

See notes to consolidated financial statements.

S-4

SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

CONDENSED BALANCE SHEETS


	At December 31,
(Dollars in millions, except share amounts and par value per share)	2023		2022
ASSETS:
Fixed maturities - available for sale (amortized cost: 2023, $0; 2022, $0)	$	—	$	—
Equity securities - at fair value	18		12
Other invested assets	190		194
Other invested assets, at fair value	1,481		1,472
Short-term investments	139		30
Cash	1		2
Total investments and cash	1,829		1,710
Investment in subsidiaries, at equity in the underlying net assets	7,545		5,496
Notes receivable - affiliated	535		1,170
Accrued investment income	6		12
Other assets	1		—
TOTAL ASSETS	$	9,916	$	8,388

LIABILITIES:
Senior notes	$	2,349	$	2,347
Long-term notes	218		218
Accrued interest on debt and borrowings	18		17
Income taxes	142		144
Due to affiliates	3		7
Total liabilities	$	2,729	$	2,734

STOCKHOLDER'S EQUITY:
Common stock, par value: $0.01; 3,000 shares authorized; 1,000 shares issued and outstanding (2023 and 2022)	—		—
Additional paid-in capital	1,102		1,102
Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) of $(76) at 2023 and $(225) at 2022	(287)		(848)
Retained earnings	6,372		5,400
Total stockholder's equity	7,187		5,654
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$	9,916	$	8,388

See notes to consolidated financial statements.

S-2

Table of Contents

SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

CONDENSED STATEMENTS OF OPERATIONS


	Years Ended December 31,
(Dollars in millions)	2023		2022		2021
REVENUES:
Net investment income	$	19	$	47	$	39
Net investment income - Affiliated	67		57		34
Net gains (losses) on investments	10		(704)		329
Other income (expense)	1		(3)		—
Net income (loss) of subsidiaries	987		114		551
Total revenues	1,086		(488)		954

EXPENSES:
Interest expense	104		97		69
Corporate expense	15		10		18
Total expenses	119		107		86

INCOME (LOSS) BEFORE TAXES	967		(595)		867
Income tax expense (benefit)	(5)		(150)		68

NET INCOME (LOSS)	$	972	$	(445)	$	800











Other comprehensive income (loss) of subsidiaries, net of tax	561		(939)		(177)

COMPREHENSIVE INCOME (LOSS)	$	1,533	$	(1,384)	$	623

See notes to consolidated financial statements.

S-3

Table of Contents

SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

CONDENSED STATEMENTS OF CASH FLOWS


	Years Ended December 31,
(Dollars in millions)	2023		2022		2021

CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	972	$	(445)	$	800
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in (earnings) deficit of subsidiaries	(987)		(114)		(551)
Dividends received from subsidiary	—		250		—
Increase (decrease) in income taxes	(2)		(173)		(45)
Change in equity adjustments in limited partnerships	(15)		(37)		(33)
Change in other assets and liabilities, net	2		(5)		40
Net (gains) losses on investments	(10)		704		(329)
Net cash provided by (used in) operating activities	(40)		180		(118)

CASH FLOWS FROM INVESTING ACTIVITIES:
Additional investment in subsidiaries	(502)		(200)		88
Proceeds from fixed maturities matured/called/repaid - available for sale	—		—		—
Proceeds from fixed maturities sold - available for sale	—		244		—
Proceeds from equity maturities sold	—		652		243
Distributions from other invested assets	171		1,362		2,014
Cost of fixed maturities acquired - available for sale	—		(134)		(148)
Cost of equity securities acquired	—		(93)		(516)
Cost of other invested assets acquired	(156)		(1,278)		(2,076)
Net change in short-term investments	(109)		(24)		5
Proceeds from repayment of long term notes receivable - affiliated	865		400		—
(Issuance) of long term notes receivable - affiliated	(230)		(1,100)		(470)
Net cash provided by (used in) investing activities	39		(171)		(860)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of senior notes	—		—		968
Cost of debt repurchase	—		(6)		—
Net cash provided by (used in) financing activities	—		(6)		968

Net increase (decrease) in cash	(1)		2		(10)
Cash, beginning of period	2		—		10
Cash, end of period	$	1	$	2	$	—

See notes to consolidated financial statements.

S-4

Table of Contents

SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

NOTES TO CONDENSED FINANCIAL INFORMATION

1.)The accompanying condensed financial information should be read in conjunction with the Consolidated Financial Statements and related ~~Notes~~notes of Everest Reinsurance Holdings, Inc. and its ~~Subsidiaries.~~

2) subsidiaries.

2.)The Senior Notes and Long-Term Subordinated Notes presented in Notes 57 and 68 are direct obligations of the Registrant.

~~3) Everest Re Group, Ltd., the parent company, entered into a $250,000~~ ~~thousand long term promissory note agreement with Everest Reinsurance Holdings, Inc. as of December 31, 2014. The note was scheduled to mature on December 31,~~

3.)Effective May 2023, ~~but was repaid in December 2018.~~

~~4) Effective December 31, 2018,~~ Everest Reinsurance Holdings, Inc. entered into a ~~$300,000~~ ~~thousand~~$230 million long-term promissory note ~~agreement~~ with Everest Reinsurance ~~(Bermuda) Ltd., an affiliated~~Company, a subsidiary entity. The promissory note ~~was~~has an interest rate of 3.72% payable annually and is scheduled to mature on October 21, 2051. However, the note was paid off in full in May 2023 and is no longer outstanding as of December 31, ~~2023~~ ~~but was repaid in May, 2019.~~

5) 2023.

4.)Effective ~~February 19, 2019,~~December 2022, Everest Reinsurance Holdings, Inc. entered into a ~~$10,000~~ ~~thousand long term~~$125 million long-term promissory note with Everest ~~Indemnity Insurance~~Group, Ltd., its parent. The promissory note has an interest rate of 4.34% payable annually and is scheduled to mature in June 2052. However, the note was paid off in full in May 2023 and is no longer outstanding as of December 31, 2023. At December 31, 2022, this transaction was included within notes receivable - affiliated in the condensed balance sheets of Everest Reinsurance Holdings, Inc.

5.)Effective September 2022, Everest Reinsurance Holdings, Inc. entered into a $560 million long-term promissory note with Everest Reinsurance Company, ~~an affiliated~~a subsidiary entity. The promissory note has an interest rate of 3.35% payable annually and is scheduled to mature in September 2052. Everest Reinsurance Company has repaid $270 million of the promissory note to Everest Reinsurance Holdings, Inc. in December 2023 which leaves $290 million outstanding as of December 31, 2023. At December 31, 2023, this transaction was included within notes receivable - affiliated in the condensed balance sheets of Everest Reinsurance Holdings, Inc.

6.)Effective June 2022, Everest Reinsurance Holdings, Inc. entered into a $215 million long-term promissory note with Everest Group, Ltd., its parent entity. The promissory note has an interest rate of 3.11% payable annually and is scheduled to mature in June 2052. However, the note was paid off in full in May 2023 and is no longer outstanding as of December 31, 2023. At December 31, 2022, this transaction was included within notes receivable - affiliated in the condensed balance sheets of Everest Reinsurance Holdings, Inc.

7.)Effective May 2022, Everest Reinsurance Holdings, Inc. entered into a $200 million long-term promissory note with Everest Reinsurance Company, a subsidiary entity. The promissory note has an interest rate of 3.25% payable annually and is scheduled to mature on ~~February 19, 2049~~ ~~but~~October 21, 2051. At December 31, 2023 and 2022, this transaction was included within notes receivable - affiliated in the condensed balance sheets of Everest Reinsurance Holdings, Inc.

8.)Effective October 21, 2021, Everest Reinsurance Holdings, Inc. entered into a $470 million long-term promissory note with Everest Reinsurance Company, a subsidiary entity. The promissory note has an interest rate of 3.25% payable annually and is scheduled to mature on October 21, 2051. Everest Reinsurance Company has repaid ~~in September 2020.~~

6) $425 million of the promissory note to Everest Reinsurance Holdings, Inc., leaving $45 million of the promissory note still outstanding as of December 31, 2023.

9.)In December, 2015, Holdings transferred the 9,719,971 Common Shares of Group, which it held as other invested assets, at fair value, valued at ~~$1,773,214~~ ~~thousand,~~$1.8 billion, to Preferred Holdings, an affiliated entity and subsidiary of Group, in exchange for 1,773.214 preferred shares of Preferred Holdings with a ~~$1,000~~ ~~thousand~~$1 million par value and ~~1.75~~%1.75% annual dividend rate. After the exchange, Holdings no longer holds any shares or has any ownership interest in Group.

S-5

Table of Contents

EVEREST REINSURANCE HOLDINGS, INC.
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION

Column A

Column B

Column C

Column D

Column E

Column F

Column G

Column H

Column I

Column J

Reserve

Incurred

Segment

for Losses

Loss and

Amortization

Deferred

and Loss

Unearned

Net

Loss

of Deferred

Other

Net

Acquisition

Adjustment

Premium

Premiums

Investment

Adjustment

Acquisition

Operating

Written
(Dollars in thousands)

Costs

Expenses

Reserves

Earned

Income

Expenses

Costs

Expenses

Premium
As of and for the year ended December 31, 2020

Reinsurance
$
169,346

$
7,896,076

$
1,127,815

$
4,484,693

$
254,671

$
3,209,160

$
1,119,966

$
119,320

$
4,632,265
Insurance

210,361

3,758,874

1,257,359

1,921,883

121,235

1,398,984

253,389

281,713

2,006,435
Total
$
379,707

$
11,654,950

$
2,385,174

$
6,406,576

$
375,906

$
4,608,144

$
1,373,355

$
401,033

$
6,638,700

As of and for the year ended December 31, 2019

Reinsurance
$
182,531

$
7,138,800

$
1,069,829

$
3,796,136

$
249,073

$
2,692,680

$
1,027,286

$
110,032

$
3,923,799
Insurance

205,707

3,070,719

1,129,103

1,692,899

107,138

1,136,442

242,767

240,869

1,851,150
Total
$
388,238

$
10,209,519

$
2,198,932

$
5,489,035

$
356,211

$
3,829,122

$
1,270,053

$
350,901

$
5,774,949

As of and for the year ended December 31, 2018

Reinsurance
$
185,328

$
7,417,941

$
939,693

$
3,386,386

$
229,375

$
3,811,747

$
923,902

$
97,927

$
3,519,704
Insurance

168,302

2,749,077

887,175

1,452,672

85,006

999,271

217,812

195,420

1,512,158
Total
$
353,630

$
10,167,018

$
1,826,868

$
4,839,058

$
314,381

$
4,811,018

$
1,141,714

$
293,347

$
5,031,862

(Some amounts may not reconcile due to rounding.)
EVEREST REINSURANCE HOLDINGS, INC.

S-6

SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION


Column A	Column B		Column C		Column D		Column E		Column F		Column G		Column H		Column I		Column J
Segments	Deferred Acquisition Costs		Reserve for Losses and Loss Adjustment Expenses		Unearned Premium Reserves		Premiums Earned		Net Investment Income		Incurred Loss and Loss Adjustment Expenses		Amortization of Deferred Acquisition Costs		Other Operating Expenses		Net Written Premium
(Dollars in millions)
As of and for the year ended December 31, 2023
Reinsurance	$	487	$	10,178	$	2,050	$	5,637	$	640	$	3,329	$	1,545	$	167	$	6,205
Insurance	172		5,617		1,836		2,900		353		2,249		306		407		3,007
Total	$	659	$	15,796	$	3,886	$	8,536	$	993	$	5,578	$	1,851	$	574	$	9,212

As of and for the year ended December 31, 2022
Reinsurance	$	329	$	9,994	$	1,453	$	5,147	$	426	$	3,926	$	1,308	$	138	$	5,204
Insurance	170		4,983		1,725		2,729		212		1,897		325		364		2,828
Total	$	499	$	14,977	$	3,177	$	7,876	$	638	$	5,823	$	1,632	$	501	$	8,032

As of and for the year ended December 31, 2021
Reinsurance	$	315	$	8,807	$	1,427	$	4,899	$	500	$	3,750	$	1,229	$	142	$	5,217
Insurance	157		4,314		1,566		2,279		245		1,637		284		312		2,503
Total	$	472	$	13,121	$	2,993	$	7,179	$	745	$	5,387	$	1,513	$	454	$	7,719

(Some amounts may not reconcile due to rounding.)

S-6

Table of Contents

SCHEDULE IV - REINSURANCE

Column A

Column B

Column C

Column D

Column E

Column F

Ceded to

Assumed

Gross

Other

from Other

Net

Assumed
(Dollars in thousands)

Amount

Companies

Companies

Amount

to Net

December 31, 2020

Total property and liability

insurance premiums earned
$
2,591,613

$
1,368,436

$
5,183,399

$
6,406,576

$
80.9%

December 31, 2019

Total property and liability

insurance premiums earned
$
2,255,387

$
1,193,359

$
4,427,006

$
5,489,034

$
80.7%

December 31, 2018

Total property and liability

insurance premiums earned
$
1,903,576

$
1,512,380

$
4,447,862

$
4,839,058

$
91.9%

SCHEDULE IV - REINSURANCE

S-7


Column A	Column B		Column C		Column D		Column E		Column F
(Dollars in millions)	Gross Amount		Ceded to Other Companies		Assumed from Other Companies		Net Amount		Assumed to Net

December 31, 2023
Total property and liability insurance premiums earned	$	3,709	$	1,878	$	6,705	$	8,536	78.6	%

December 31, 2022
Total property and liability insurance premiums earned	$	3,544	$	1,613	$	5,945	$	7,876	75.5	%

December 31, 2021
Total property and liability insurance premiums earned	$	2,982	$	1,544	$	5,741	$	7,179	80.0	%

S-7

Calendar year:	Pre-tax catastrophe losses
(Dollars in millions)
2020	$	397.4
2019		573.7
2018		1,712.6
2017		941.4
2016		109.2

	At
(Dollars in millions)	December 31, 2020		% of Total
Mortgage-backed securities
Commercial	$	550.1		3.5	%
Agency residential		965.1		6.1	%
Non-agency residential		3.2		-	%
Other asset-backed		2,474.2		15.6	%
Total asset-backed		3,992.6		25.1	%
Other fixed income		6,651.0		41.8	%
Total fixed income, at market value		10,643.6		66.9	%
Equity securities - at fair value		1,288.8		8.1	%
Other invested assets		1,094.9		6.9	%
Other invested assets, at fair value		1,796.5		11.3	%
Cash and short-term investments		1,086.4		6.8	%
Total investments and cash	$	15,910.2		100.0	%

	December 31,
(Dollars in thousands, except share amounts and par value per share)	2020		2019

ASSETS:
Fixed maturities - available for sale, at market value (amortized cost: 2020, $10,248,650; 2019, $7,334,425 allowances for credit losses: 2020, $1,566; 2019, $0)	$	10,643,565	$	7,492,079
Fixed maturities - available for sale, at fair value		-		5,826
Equity securities, at fair value		1,288,767		764,049
Short-term investments (cost: 2020, $708,043; 2019, $279,824)		707,905		279,879
Other invested assets (cost: 2020, $1,094,933; 2019, $1,020,766)		1,094,933		1,020,766
Other invested assets, at fair value		1,796,479		1,982,582
Cash		378,518		411,122
Total investments and cash		15,910,167		11,956,303
Note Receivable - affiliated		300,000		300,000
Accrued investment income		80,196		54,383
Premiums receivable		1,591,980		1,337,344
Reinsurance receivables - unaffiliated		1,505,650		1,318,820
Reinsurance receivables - affiliated		2,701,655		3,125,269
Income taxes net recoverable		-		65,793
Funds held by reinsureds		267,599		228,297
Deferred acquisition costs		379,707		388,238
Prepaid reinsurance premiums		363,489		413,612
Other assets		616,640		518,127
TOTAL ASSETS	$	23,717,083	$	19,706,186

LIABILITIES:
Reserve for losses and loss adjustment expenses	$	11,654,950	$	10,209,519
Unearned premium reserve		2,385,174		2,198,932
Funds held under reinsurance treaties		46,894		41,233
Other net payable to reinsurers		277,390		267,367
Losses in course of payment		161,154		70,541
Income taxes net payable		192,877		-
Senior notes due 6/1/2044		397,194		397,074
Senior notes due 10/15/2050		979,524		-
Long term notes due 5/1/2067		223,674		236,758
Borrowings from FHLB		310,000		-
Accrued interest on debt and borrowings		10,460		2,878
Unsettled securities payable		206,693		25,230
Other liabilities		456,786		399,229
Total liabilities		17,302,770		13,848,761

Commitments and Contingencies (Note 15)		(nil)		(nil)

STOCKHOLDER'S EQUITY:
Common stock, par value: $0.01; 3,000 shares authorized; 1,000 shares issued and outstanding (2020 and 2019)		-		-
Additional paid-in capital		1,101,092		1,100,678
Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) of $71,080 at 2020 and $16,997 at 2019		268,018		64,324
Retained earnings		5,045,203		4,692,423
Total stockholder's equity		6,414,313		5,857,425
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$	23,717,083	$	19,706,186

The accompanying notes are an integral part of the consolidated financial statements.

	At December 31, 2020
	Amortized		Allowances for		Unrealized		Unrealized		Market
(Dollars in thousands)	Cost		Credit Loss		Appreciation		Depreciation		Value
Fixed maturity securities
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	659,957	$	-	$	22,032	$	-	$	681,989
Obligations of U.S. states and political subdivisions		543,646		-		34,655		(1,255)		577,046
Corporate securities		3,316,525		(1,205)		166,072		(31,480)		3,449,912
Asset-backed securities		2,450,807		-		28,585		(5,222)		2,474,170
Mortgage-backed securities
Commercial		512,388		-		37,875		(183)		550,080
Agency residential		937,166		-		28,630		(696)		965,100
Non-agency residential		3,164		-		2		(2)		3,164
Foreign government securities		694,132		-		51,317		(3,211)		742,238
Foreign corporate securities		1,130,865		(361)		73,265		(3,903)		1,199,866
Total fixed maturity securities	$	10,248,650	$	(1,566)	$	442,433	$	(45,952)	$	10,643,565

	Roll Forward of Allowance for Credit Losses
	Twelve Months Ended December 31, 2020
			Foreign		Foreign
	Corporate		Government		Corporate
	Securities		Securities		Securities		Total

Beginning Balance	$	-	$	-	$	-	$	-
Credit losses on securities where credit
losses were not previously recorded		(21,829)		(70)		(561)		(22,460)
Increases in allowance on previously
impaired securities		(5,909)		-		(211)		(6,120)
Decreases in allowance on previously
impaired securities		1,824		-		282		2,106
Reduction in allowance due to disposals		24,709		70		129		24,908

Balance as of December 31, 2020	$	(1,205)	$	-	$	(361)	$	(1,566)

			Fair Value Measurement Using:
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	December 31,		Assets		Inputs		Inputs
(Dollars in thousands)	2020		(Level 1)		(Level 2)		(Level 3)
Assets:
Fixed maturities, market value
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	681,989	$	-	$	681,989	$	-
Obligations of U.S. States and political subdivisions		577,046		-		577,046		-
Corporate securities		3,449,912		-		2,819,068		630,844
Asset-backed securities		2,474,170		-		1,851,137		623,033
Mortgage-backed securities
Commercial		550,080		-		550,080		-
Agency residential		965,100		-		965,100		-
Non-agency residential		3,164		-		3,164		-
Foreign government securities		742,238		-		742,238		-
Foreign corporate securities		1,199,866		-		1,194,167		5,699
Total fixed maturities, market value		10,643,565		-		9,383,989		1,259,576

Equity securities, fair value		1,288,767		1,222,158	-	66,609		-
Other invested assets, fair value		1,796,479		-		-		1,796,479

	Total Fixed Maturities, Market Value
	December 31, 2020								December 31, 2019
	Corporate		Asset		Foreign				Corporate		Asset		Foreign
(Dollars in thousands)	Securities		Backed Securities		Corporate		Total		Securities		Backed Securities		Corporate		Total
Beginning balance	$	546,939	$	153,641	$	1,751	$	702,331	$	376,250	$	-	$	7,744	$	383,994
Total gains or (losses) (realized/unrealized)
Included in earnings		1,216		681		(125)		1,772		4,937		-		(12)		4,925
Included in other comprehensive income (loss)		(1,115)		11,678		147		10,710		(21)		3,632		(110)		3,501
Purchases, issuances and settlements		84,840		457,033		3,814		545,687		161,078		150,009		(5,871)		305,216
Transfers in and/or (out) of Level 3		(1,037)		-		113		(924)		4,695		-		-		4,695
Ending balance	$	630,843	$	623,033	$	5,700	$	1,259,576	$	546,939	$	153,641	$	1,751	$	702,331
The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	$	(539)	$	-	$	-	$	(539)	$	-	$	-	$	-	$	-

(Some amounts may not reconcile due to rounding.)

	Total Fixed Maturities, Fair Value
	December 31, 2020				December 31, 2019
	Foreign				Foreign
(Dollars in thousands)	Corporate		Total		Corporate		Total
Beginning balance fixed maturities at fair value		5,826		5,826		2,337		2,337
Total gains or (losses) (realized/unrealized)
Included in earnings		(919)		(919)		2,163		2,163
Included in other comprehensive income (loss)		-		-		-		-
Purchases, issuances and settlements		(4,907)		(4,907)		1,326		1,326
Transfers in and/or (out) of Level 3		-		-		-		-
Ending balance	$	-	$	-	$	5,826	$	5,826
The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	$	-	$	-	$	1,796	$	1,796
(Some amounts may not reconcile due to rounding.)

				December 31, 2020				December 31, 2019
				Consolidated				Consolidated
			Principal	Balance Sheet		Market		Balance Sheet		Market
(Dollars in thousands)	Date Issued	Date Due	Amounts	Amount		Value		Amount		Value
4.868% Senior notes	06/05/2014	06/01/2044	400,000	$	397,194	$	528,000	$	397,074	$	452,848
3.5% Senior notes	10/07/2020	10/15/2050	1,000,000	$	979,524	$	1,138,100	$	-	$	-

	Year Ended
	December 31,
(Dollars in thousands)	2020		2019
Lease expense incurred:
Operating lease cost	$	29,822	$	21,471

(Dollars in thousands)

2021	$	16,191
2022		18,623
2023		18,211
2024		18,217
2025		15,225
Thereafter		116,197
Undiscounted lease payments		202,664
Less: present value adjustment		47,520
Total operating lease liability	$	155,144

	Years Ended December 31,
(Dollars in thousands)	2020		2019		2018
Written premiums:
Direct	$	2,698,100	$	2,449,198	$	1,996,606
Assumed		5,258,938		4,603,866		4,577,070
Ceded		(1,318,338)		(1,278,115)		(1,541,814)
Net written premiums	$	6,638,700	$	5,774,949	$	5,031,862

Premiums earned:
Direct	$	2,591,613	$	2,255,388	$	1,903,576
Assumed		5,183,399		4,427,006		4,447,862
Ceded		(1,368,436)		(1,193,359)		(1,512,380)
Net premiums earned	$	6,406,576	$	5,489,035	$	4,839,058

Incurred losses and LAE:
Direct	$	1,784,616	$	1,401,251	$	1,182,399
Assumed		3,576,252		2,913,987		4,162,776
Ceded		(752,724)		(486,116)		(534,157)
Net incurred losses and LAE	$	4,608,144	$	3,829,122	$	4,811,018

(Dollars in thousands)
Effective	Transferring	Assuming		% of Business or		Covered Period
Date	Company	Company		Amount of Transfer		of Transfer
10/01/2001	Everest Re (Belgium Branch)	Bermuda Re		100	%	All years
10/01/2008	Everest Re	Bermuda Re	$	747,022		01/01/2002-12/31/2007
12/31/2017	Everest Re	Bermuda Re	$	970,000		All years

					Affected line item within the
	Years Ended December 31,				statements of operations and
AOCI component	2020		2019		comprehensive income (loss)
(Dollars in thousands)
URA(D) on securities	$	32,475	$	6,068	Other net realized capital gains (losses)
		(7,007)		(988)	Income tax expense (benefit)
	$	25,468	$	5,080	Net income (loss)
Benefit plan net gain (loss)	$	7,974	$	6,902	Other underwriting expenses
		(1,674)		(1,449)	Income tax expense (benefit)
	$	6,300	$	5,453	Net income (loss)

(Some amounts may not reconcile due to rounding)

(Dollars in thousands)
2021	$	11,757
2022		12,220
2023		13,064
2024		14,100
2025		15,190
Next 5 years		90,808

	Everest Re ⁽¹⁾
	At December 31,
(Dollars in thousands)	2020		2019
Regulatory targeted capital	$	2,489,772	$	2,001,226
Actual capital	$	5,276,003	$	3,739,140

	2020
(Dollars in thousands)	1st Quarter		2nd Quarter		3rd Quarter		4th Quarter

Operating data:
Gross written premiums	$	1,974,965	$	1,838,247	$	2,064,961	$	2,078,865
Net written premiums		1,638,708		1,501,550		1,725,701		1,772,741

Premiums earned		1,494,005		1,538,960		1,615,457		1,758,154
Net investment income		74,201		35,153		135,428		131,124
Net realized capital gains (losses)		256,867		(479,360)		115,193		157,104
Total claims and underwriting expenses		1,465,006		1,436,098		1,720,362		1,812,710
Net income (loss)		316,645		(270,593)		119,806		186,015

SCHEDULE IV - REINSURANCE

Column A		Column B		Column C		Column D		Column E		Column F
				Ceded to		Assumed
		Gross		Other		from Other		Net		Assumed
(Dollars in thousands)		Amount		Companies		Companies		Amount		to Net

December 31, 2020
Total property and liability
insurance premiums earned	$	2,591,613	$	1,368,436	$	5,183,399	$	6,406,576	$	80.9%

December 31, 2019
Total property and liability
insurance premiums earned	$	2,255,387	$	1,193,359	$	4,427,006	$	5,489,034	$	80.7%

December 31, 2018
Total property and liability
insurance premiums earned	$	1,903,576	$	1,512,380	$	4,447,862	$	4,839,058	$	91.9%