X | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Delaware | 22-3263609 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
100 Everest Way Warren, New Jersey | 07059 | |||||||
(Address of principal executive offices) | (Zip Code) |
Yes | X | No |
Yes | X | No |
Large accelerated filer | Accelerated filer | |||||||||||||
Non-accelerated | X | Smaller reporting company | ||||||||||||
Emerging growth company |
Yes | No | X |
Number of Shares Outstanding | ||||||||
Class | At | |||||||
Common Shares, $0.01 par value | 1,000 |
Page | ||||||||
Consolidated Balance Sheets as of | ||||||||
Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and | ||||||||
Consolidated Statements of Changes in Stockholder’s Equity for the three and | ||||||||
Consolidated Statements of Cash Flows for the | ||||||||
June 30, | December 31, | September 30, | December 31, | |||||||||||||||||||
(Dollars in millions, except share amounts and par value per share) | (Dollars in millions, except share amounts and par value per share) | 2023 | 2022 | (Dollars in millions, except share amounts and par value per share) | 2023 | 2022 | ||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||
ASSETS: | ASSETS: | ASSETS: | ||||||||||||||||||||
Fixed maturities - available for sale, at fair value (amortized cost: 2023, $15,141; 2022, $13,699, credit allowances: 2023, $(57); 2022, $(46)) | $ | 14,202 | $ | 12,671 | ||||||||||||||||||
Fixed maturities - held to maturity, at amortized cost (fair value: 2023, $771; 2022, $793, net of credit allowances: 2023, $(8); 2022, $(9)) | 788 | 811 | ||||||||||||||||||||
Fixed maturities - available for sale, at fair value | Fixed maturities - available for sale, at fair value | $ | 14,434 | $ | 12,671 | |||||||||||||||||
(amortized cost: 2023, $15,520; 2022, $13,699, credit allowances: 2023, $(58); 2022, $(46)) | (amortized cost: 2023, $15,520; 2022, $13,699, credit allowances: 2023, $(58); 2022, $(46)) | |||||||||||||||||||||
Fixed maturities - held to maturity, at amortized cost | Fixed maturities - held to maturity, at amortized cost | |||||||||||||||||||||
(fair value: 2023, $759; 2022, $793, net of credit allowances: 2023, $(8); 2022, $(9)) | (fair value: 2023, $759; 2022, $793, net of credit allowances: 2023, $(8); 2022, $(9)) | 782 | 811 | |||||||||||||||||||
Equity securities, at fair value | Equity securities, at fair value | 167 | 194 | Equity securities, at fair value | 79 | 194 | ||||||||||||||||
Other invested assets | Other invested assets | 2,853 | 2,754 | Other invested assets | 2,916 | 2,754 | ||||||||||||||||
Other invested assets, at fair value | Other invested assets, at fair value | 1,474 | 1,472 | Other invested assets, at fair value | 1,440 | 1,472 | ||||||||||||||||
Short-term investments | Short-term investments | 1,095 | 812 | Short-term investments | 1,660 | 812 | ||||||||||||||||
Cash | Cash | 478 | 481 | Cash | 531 | 481 | ||||||||||||||||
Total investments and cash | Total investments and cash | 21,056 | 19,195 | Total investments and cash | 21,841 | 19,195 | ||||||||||||||||
Notes receivable - affiliated | Notes receivable - affiliated | — | 840 | Notes receivable - affiliated | — | 840 | ||||||||||||||||
Accrued investment income | Accrued investment income | 187 | 150 | Accrued investment income | 212 | 150 | ||||||||||||||||
Premiums receivable (net of credit allowances:2023, $(22); 2022, $(21)) | 2,084 | 1,721 | ||||||||||||||||||||
Reinsurance recoverables - unaffiliated (net of credit allowances:2023, $(21); 2022, $(21)) | 1,960 | 1,841 | ||||||||||||||||||||
Premiums receivable (net of credit allowances:2023, $(25); 2022, $(21)) | Premiums receivable (net of credit allowances:2023, $(25); 2022, $(21)) | 2,106 | 1,721 | |||||||||||||||||||
Reinsurance recoverables - unaffiliated (net of credit allowances: 2023, $(22); 2022, $(21)) | Reinsurance recoverables - unaffiliated (net of credit allowances: 2023, $(22); 2022, $(21)) | 1,981 | 1,841 | |||||||||||||||||||
Reinsurance recoverables - affiliated | Reinsurance recoverables - affiliated | 1,830 | 1,935 | Reinsurance recoverables - affiliated | 1,650 | 1,935 | ||||||||||||||||
Income tax asset, net | Income tax asset, net | 201 | 288 | Income tax asset, net | 328 | 288 | ||||||||||||||||
Funds held by reinsureds | Funds held by reinsureds | 295 | 303 | Funds held by reinsureds | 302 | 303 | ||||||||||||||||
Deferred acquisition costs | Deferred acquisition costs | 530 | 499 | Deferred acquisition costs | 596 | 499 | ||||||||||||||||
Prepaid reinsurance premiums | Prepaid reinsurance premiums | 522 | 463 | Prepaid reinsurance premiums | 580 | 463 | ||||||||||||||||
Other assets (net of credit allowances: 2023, $(7); 2022, $(5)) | 830 | 722 | ||||||||||||||||||||
Other assets (net of credit allowances: 2023, $(8); 2022, $(5)) | Other assets (net of credit allowances: 2023, $(8); 2022, $(5)) | 838 | 722 | |||||||||||||||||||
TOTAL ASSETS | TOTAL ASSETS | $ | 29,494 | $ | 27,957 | TOTAL ASSETS | $ | 30,434 | $ | 27,957 | ||||||||||||
LIABILITIES: | LIABILITIES: | LIABILITIES: | ||||||||||||||||||||
Reserve for losses and loss adjustment expenses | Reserve for losses and loss adjustment expenses | $ | 15,512 | $ | 14,977 | Reserve for losses and loss adjustment expenses | $ | 15,669 | $ | 14,977 | ||||||||||||
Unearned premium reserve | Unearned premium reserve | 3,497 | 3,177 | Unearned premium reserve | 3,761 | 3,177 | ||||||||||||||||
Funds held under reinsurance treaties | Funds held under reinsurance treaties | 55 | 43 | Funds held under reinsurance treaties | 57 | 43 | ||||||||||||||||
Amounts due to reinsurers | Amounts due to reinsurers | 509 | 436 | Amounts due to reinsurers | 651 | 436 | ||||||||||||||||
Losses in course of payment | Losses in course of payment | 72 | 77 | Losses in course of payment | 233 | 77 | ||||||||||||||||
Senior notes | Senior notes | 2,348 | 2,347 | Senior notes | 2,348 | 2,347 | ||||||||||||||||
Long-term notes | Long-term notes | 218 | 218 | Long-term notes | 218 | 218 | ||||||||||||||||
Borrowings from FHLB | Borrowings from FHLB | 519 | 519 | Borrowings from FHLB | 519 | 519 | ||||||||||||||||
Accrued interest on debt and borrowings | Accrued interest on debt and borrowings | 19 | 19 | Accrued interest on debt and borrowings | 41 | 19 | ||||||||||||||||
Unsettled securities payable | Unsettled securities payable | 10 | 1 | Unsettled securities payable | 111 | 1 | ||||||||||||||||
Other liabilities | Other liabilities | 446 | 489 | Other liabilities | 438 | 489 | ||||||||||||||||
Total liabilities | Total liabilities | 23,204 | 22,303 | Total liabilities | 24,047 | 22,303 | ||||||||||||||||
Commitments and Contingencies (Note 11) | Commitments and Contingencies (Note 11) | Commitments and Contingencies (Note 11) | ||||||||||||||||||||
STOCKHOLDER'S EQUITY: | STOCKHOLDER'S EQUITY: | STOCKHOLDER'S EQUITY: | ||||||||||||||||||||
Common stock, par value: $0.01; 3,000 shares authorized; 1,000 shares issued and outstanding (2023 and 2022) | — | — | ||||||||||||||||||||
Common stock, par value: $0.01; 3,000 shares authorized; | Common stock, par value: $0.01; 3,000 shares authorized; | |||||||||||||||||||||
1,000 shares issued and outstanding (2023 and 2022) | 1,000 shares issued and outstanding (2023 and 2022) | — | — | |||||||||||||||||||
Additional paid-in capital | Additional paid-in capital | 1,102 | 1,102 | Additional paid-in capital | 1,102 | 1,102 | ||||||||||||||||
Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) of $(202) at 2023 and $(225) at 2022 | (762) | (848) | ||||||||||||||||||||
Accumulated other comprehensive income (loss), net of deferred income tax | Accumulated other comprehensive income (loss), net of deferred income tax | |||||||||||||||||||||
expense (benefit) of $(236) at 2023 and $(225) at 2022 | expense (benefit) of $(236) at 2023 and $(225) at 2022 | (886) | (848) | |||||||||||||||||||
Retained earnings | Retained earnings | 5,950 | 5,400 | Retained earnings | 6,171 | 5,400 | ||||||||||||||||
Total stockholder's equity | Total stockholder's equity | 6,290 | 5,654 | Total stockholder's equity | 6,388 | 5,654 | ||||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $ | 29,494 | $ | 27,957 | TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $ | 30,434 | $ | 27,957 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||||||||||||
REVENUES: | REVENUES: | REVENUES: | ||||||||||||||||||||||||||||||||||||||||||||
Premiums earned | Premiums earned | $ | 2,131 | $ | 1,954 | $ | 4,200 | $ | 3,783 | Premiums earned | $ | 2,139 | $ | 2,104 | $ | 6,339 | $ | 5,887 | ||||||||||||||||||||||||||||
Net investment income | Net investment income | 242 | 176 | 432 | 333 | Net investment income | 278 | 124 | 711 | 457 | ||||||||||||||||||||||||||||||||||||
Total net gains (losses) on investments | Total net gains (losses) on investments | (22) | (378) | — | (605) | Total net gains (losses) on investments | (59) | (237) | (59) | (842) | ||||||||||||||||||||||||||||||||||||
Other income (expense) | Other income (expense) | (10) | — | (15) | (9) | Other income (expense) | 2 | 7 | (12) | (2) | ||||||||||||||||||||||||||||||||||||
Total revenues | Total revenues | 2,341 | 1,753 | 4,618 | 3,502 | Total revenues | 2,361 | 1,998 | 6,979 | 5,500 | ||||||||||||||||||||||||||||||||||||
CLAIMS AND EXPENSES: | CLAIMS AND EXPENSES: | CLAIMS AND EXPENSES: | ||||||||||||||||||||||||||||||||||||||||||||
Incurred losses and loss adjustment expenses | Incurred losses and loss adjustment expenses | 1,325 | 1,304 | 2,719 | 2,530 | Incurred losses and loss adjustment expenses | 1,471 | 2,094 | 4,190 | 4,624 | ||||||||||||||||||||||||||||||||||||
Commission, brokerage, taxes and fees | Commission, brokerage, taxes and fees | 433 | 409 | 869 | 793 | Commission, brokerage, taxes and fees | 454 | 423 | 1,323 | 1,216 | ||||||||||||||||||||||||||||||||||||
Other underwriting expenses | Other underwriting expenses | 136 | 120 | 275 | 238 | Other underwriting expenses | 149 | 127 | 424 | 365 | ||||||||||||||||||||||||||||||||||||
Corporate expenses | Corporate expenses | 4 | 6 | 10 | 12 | Corporate expenses | 8 | 5 | 18 | 17 | ||||||||||||||||||||||||||||||||||||
Interest, fees and bond issue cost amortization expense | Interest, fees and bond issue cost amortization expense | 33 | 24 | 65 | 48 | Interest, fees and bond issue cost amortization expense | 34 | 26 | 99 | 74 | ||||||||||||||||||||||||||||||||||||
Total claims and expenses | Total claims and expenses | 1,930 | 1,863 | 3,938 | 3,621 | Total claims and expenses | 2,115 | 2,675 | 6,053 | 6,296 | ||||||||||||||||||||||||||||||||||||
INCOME (LOSS) BEFORE TAXES | INCOME (LOSS) BEFORE TAXES | 411 | (110) | 679 | (119) | INCOME (LOSS) BEFORE TAXES | 246 | (677) | 926 | (796) | ||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | Income tax expense (benefit) | 81 | (25) | 130 | (35) | Income tax expense (benefit) | 25 | (135) | 154 | (170) | ||||||||||||||||||||||||||||||||||||
NET INCOME (LOSS) | NET INCOME (LOSS) | $ | 330 | $ | (86) | $ | 549 | $ | (85) | NET INCOME (LOSS) | $ | 222 | $ | (542) | $ | 771 | $ | (626) | ||||||||||||||||||||||||||||
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 | Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period | (44) | (411) | 68 | (805) | Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period | (124) | (282) | (56) | (1,087) | ||||||||||||||||||||||||||||||||||||
Less: reclassification adjustment for realized losses (gains) included in net income (loss) | Less: reclassification adjustment for realized losses (gains) included in net income (loss) | 6 | 6 | 15 | 8 | Less: reclassification adjustment for realized losses (gains) included in net income (loss) | 11 | 40 | 26 | 48 | ||||||||||||||||||||||||||||||||||||
Total URA(D) on securities arising during the period | Total URA(D) on securities arising during the period | (38) | (405) | 83 | (797) | Total URA(D) on securities arising during the period | (113) | (242) | (31) | (1,039) | ||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | Foreign currency translation adjustments | (4) | (10) | 2 | (12) | Foreign currency translation adjustments | (11) | (29) | (9) | (41) | ||||||||||||||||||||||||||||||||||||
Reclassification adjustment for amortization of net (gain) loss included in net income (loss) | Reclassification adjustment for amortization of net (gain) loss included in net income (loss) | — | 1 | 1 | 2 | Reclassification adjustment for amortization of net (gain) loss included in net income (loss) | — | — | 1 | 2 | ||||||||||||||||||||||||||||||||||||
Total benefit plan net gain (loss) for the period | Total benefit plan net gain (loss) for the period | — | 1 | 1 | 2 | Total benefit plan net gain (loss) for the period | — | — | 1 | 2 | ||||||||||||||||||||||||||||||||||||
Total other comprehensive income (loss), net of tax | Total other comprehensive income (loss), net of tax | (42) | (414) | 86 | (807) | Total other comprehensive income (loss), net of tax | (124) | (271) | (38) | (1,078) | ||||||||||||||||||||||||||||||||||||
COMPREHENSIVE INCOME (LOSS) | COMPREHENSIVE INCOME (LOSS) | $ | 288 | $ | (500) | $ | 636 | $ | (892) | COMPREHENSIVE INCOME (LOSS) | $ | 97 | $ | (813) | $ | 733 | $ | (1,704) |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions, except share amounts) | (Dollars in millions, except share amounts) | 2023 | 2022 | 2023 | 2022 | (Dollars in millions, except share amounts) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||||||||||||
COMMON STOCK (shares outstanding): | COMMON STOCK (shares outstanding): | COMMON STOCK (shares outstanding): | ||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | Balance, beginning of period | 1,000 | 1,000 | 1,000 | 1,000 | Balance, beginning of period | 1,000 | 1,000 | 1,000 | 1,000 | ||||||||||||||||||||||||||||||||||||
Balance, end of period | Balance, end of period | 1,000 | 1,000 | 1,000 | 1,000 | Balance, end of period | 1,000 | 1,000 | 1,000 | 1,000 | ||||||||||||||||||||||||||||||||||||
ADDITIONAL PAID-IN CAPITAL: | ADDITIONAL PAID-IN CAPITAL: | ADDITIONAL PAID-IN CAPITAL: | ||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | Balance, beginning of period | $ | 1,102 | $ | 1,102 | $ | 1,102 | $ | 1,102 | Balance, beginning of period | $ | 1,102 | $ | 1,102 | $ | 1,102 | $ | 1,102 | ||||||||||||||||||||||||||||
Share-based compensation plans | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Balance, end of period | Balance, end of period | 1,102 | 1,102 | 1,102 | 1,102 | Balance, end of period | 1,102 | 1,102 | 1,102 | 1,102 | ||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), NET OF DEFERRED INCOME TAXES: | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), NET OF DEFERRED INCOME TAXES: | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), NET OF DEFERRED INCOME TAXES: | ||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | Balance, beginning of period | (720) | (302) | (848) | 91 | Balance, beginning of period | (762) | (716) | (848) | 91 | ||||||||||||||||||||||||||||||||||||
Net increase (decrease) during the period | Net increase (decrease) during the period | (42) | (414) | 86 | (807) | Net increase (decrease) during the period | (124) | (271) | (38) | (1,078) | ||||||||||||||||||||||||||||||||||||
Balance, end of period | Balance, end of period | (762) | (716) | (762) | (716) | Balance, end of period | (886) | (987) | (886) | (987) | ||||||||||||||||||||||||||||||||||||
RETAINED EARNINGS: | RETAINED EARNINGS: | RETAINED EARNINGS: | ||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | Balance, beginning of period | 5,620 | 5,846 | 5,400 | 5,845 | Balance, beginning of period | 5,950 | 5,760 | 5,400 | 5,845 | ||||||||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | 330 | (86) | 549 | (85) | Net income (loss) | 222 | (542) | 771 | (626) | ||||||||||||||||||||||||||||||||||||
Balance, end of period | Balance, end of period | 5,950 | 5,760 | 5,950 | 5,760 | Balance, end of period | 6,171 | 5,219 | 6,171 | 5,219 | ||||||||||||||||||||||||||||||||||||
TOTAL STOCKHOLDER'S EQUITY, END OF PERIOD | TOTAL STOCKHOLDER'S EQUITY, END OF PERIOD | $ | 6,290 | $ | 6,146 | $ | 6,290 | $ | 6,146 | TOTAL STOCKHOLDER'S EQUITY, END OF PERIOD | $ | 6,388 | $ | 5,334 | $ | 6,388 | $ | 5,334 |
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | (Dollars in millions) | 2023 | 2022 | ||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | CASH FLOWS FROM OPERATING ACTIVITIES: | CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||||||
Net income (loss) | Net income (loss) | $ | 549 | $ | (85) | Net income (loss) | $ | 771 | $ | (626) | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Decrease (increase) in premiums receivable | Decrease (increase) in premiums receivable | (363) | 10 | Decrease (increase) in premiums receivable | (389) | (50) | ||||||||||||||||
Decrease (increase) in funds held by reinsureds, net | Decrease (increase) in funds held by reinsureds, net | 20 | (6) | Decrease (increase) in funds held by reinsureds, net | 15 | 7 | ||||||||||||||||
Decrease (increase) in reinsurance recoverables | Decrease (increase) in reinsurance recoverables | (4) | 105 | Decrease (increase) in reinsurance recoverables | 143 | 40 | ||||||||||||||||
Decrease (increase) in income taxes | Decrease (increase) in income taxes | 65 | (139) | Decrease (increase) in income taxes | (24) | (341) | ||||||||||||||||
Decrease (increase) in prepaid reinsurance premiums | Decrease (increase) in prepaid reinsurance premiums | (57) | (44) | Decrease (increase) in prepaid reinsurance premiums | (117) | (30) | ||||||||||||||||
Increase (decrease) in reserve for losses and loss adjustment expenses | Increase (decrease) in reserve for losses and loss adjustment expenses | 526 | 637 | Increase (decrease) in reserve for losses and loss adjustment expenses | 701 | 1,791 | ||||||||||||||||
Increase (decrease) in unearned premiums | Increase (decrease) in unearned premiums | 319 | 51 | Increase (decrease) in unearned premiums | 587 | 159 | ||||||||||||||||
Increase (decrease) in amounts due to reinsurers | Increase (decrease) in amounts due to reinsurers | 70 | 35 | Increase (decrease) in amounts due to reinsurers | 215 | 45 | ||||||||||||||||
Increase (decrease) in losses in course of payment | Increase (decrease) in losses in course of payment | (5) | (175) | Increase (decrease) in losses in course of payment | 157 | (131) | ||||||||||||||||
Change in equity adjustments in limited partnerships | Change in equity adjustments in limited partnerships | (21) | (110) | Change in equity adjustments in limited partnerships | (61) | (94) | ||||||||||||||||
Distribution of limited partnership income | Distribution of limited partnership income | 23 | 49 | Distribution of limited partnership income | 38 | 72 | ||||||||||||||||
Change in other assets and liabilities, net | Change in other assets and liabilities, net | (215) | (19) | Change in other assets and liabilities, net | (300) | (62) | ||||||||||||||||
Non-cash compensation expense | Non-cash compensation expense | 19 | 20 | Non-cash compensation expense | 29 | 28 | ||||||||||||||||
Amortization of bond premium (accrual of bond discount) | Amortization of bond premium (accrual of bond discount) | (11) | 15 | Amortization of bond premium (accrual of bond discount) | (24) | 21 | ||||||||||||||||
Net (gains) losses on investments | Net (gains) losses on investments | — | 605 | Net (gains) losses on investments | 59 | 842 | ||||||||||||||||
Net cash provided by (used in) operating activities | Net cash provided by (used in) operating activities | 914 | 948 | Net cash provided by (used in) operating activities | 1,799 | 1,671 | ||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | 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 | 543 | 876 | Proceeds from fixed maturities matured/called/repaid - available for sale | 818 | 1,124 | ||||||||||||||||
Proceeds from fixed maturities sold - available for sale | Proceeds from fixed maturities sold - available for sale | 109 | 511 | Proceeds from fixed maturities sold - available for sale | 318 | 812 | ||||||||||||||||
Proceeds from fixed maturities matured/called/repaid - held to maturity | Proceeds from fixed maturities matured/called/repaid - held to maturity | 43 | — | Proceeds from fixed maturities matured/called/repaid - held to maturity | 59 | 18 | ||||||||||||||||
Proceeds from equity securities sold | Proceeds from equity securities sold | 46 | 425 | Proceeds from equity securities sold | 126 | 1,016 | ||||||||||||||||
Distributions from other invested assets | Distributions from other invested assets | 60 | 99 | Distributions from other invested assets | 90 | 126 | ||||||||||||||||
Cost of fixed maturities acquired - available for sale | Cost of fixed maturities acquired - available for sale | (2,100) | (2,465) | Cost of fixed maturities acquired - available for sale | (2,996) | (3,358) | ||||||||||||||||
Cost of fixed maturities acquired - held to maturity | Cost of fixed maturities acquired - held to maturity | (15) | (72) | Cost of fixed maturities acquired - held to maturity | (23) | (105) | ||||||||||||||||
Cost of equity securities acquired | Cost of equity securities acquired | (1) | (272) | Cost of equity securities acquired | (1) | (949) | ||||||||||||||||
Cost of other invested assets acquired | Cost of other invested assets acquired | (161) | (153) | Cost of other invested assets acquired | (234) | (224) | ||||||||||||||||
Net change in short-term investments | Net change in short-term investments | (269) | 465 | Net change in short-term investments | (821) | 243 | ||||||||||||||||
Net change in unsettled securities transactions | Net change in unsettled securities transactions | 13 | 29 | Net change in unsettled securities transactions | 112 | 79 | ||||||||||||||||
Proceeds from repayment (cost of issuance) of notes receivable - affiliated | Proceeds from repayment (cost of issuance) of notes receivable - affiliated | 840 | (215) | Proceeds from repayment (cost of issuance) of notes receivable - affiliated | 840 | (215) | ||||||||||||||||
Net cash provided by (used in) investing activities | Net cash provided by (used in) investing activities | (892) | (772) | Net cash provided by (used in) investing activities | (1,711) | (1,433) | ||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | CASH FLOWS FROM FINANCING ACTIVITIES: | CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||
Tax benefit from share-based compensation, net of expense | Tax benefit from share-based compensation, net of expense | (19) | (20) | Tax benefit from share-based compensation, net of expense | (29) | (28) | ||||||||||||||||
Cost of debt repurchase | Cost of debt repurchase | — | (6) | |||||||||||||||||||
Net cash provided by (used in) financing activities | Net cash provided by (used in) financing activities | (19) | (20) | Net cash provided by (used in) financing activities | (29) | (34) | ||||||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | EFFECT OF EXCHANGE RATE CHANGES ON CASH | (6) | (12) | EFFECT OF EXCHANGE RATE CHANGES ON CASH | (9) | (25) | ||||||||||||||||
Net increase (decrease) in cash | Net increase (decrease) in cash | (3) | 144 | Net increase (decrease) in cash | 50 | 179 | ||||||||||||||||
Cash, beginning of period | Cash, beginning of period | 481 | 699 | Cash, beginning of period | 481 | 699 | ||||||||||||||||
Cash, end of period | Cash, end of period | $ | 478 | $ | 844 | Cash, end of period | $ | 531 | $ | 878 | ||||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION: | SUPPLEMENTAL CASH FLOW INFORMATION: | SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||||||||||||||
Income taxes paid (recovered) | Income taxes paid (recovered) | $ | 71 | $ | 104 | Income taxes paid (recovered) | $ | 181 | $ | 170 | ||||||||||||
Interest paid | Interest paid | 64 | 48 | Interest paid | 75 | 51 | ||||||||||||||||
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 | $ | — | $ | 722 | |||||||||||||||||
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 |
At June 30, 2023 | At September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Amortized Cost | Allowances for Credit Losses | Unrealized Appreciation | Unrealized Depreciation | Fair Value | (Dollars in millions) | Amortized Cost | Allowances for Credit Losses | Unrealized Appreciation | Unrealized Depreciation | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities – available for sale | Fixed maturity securities – available for sale | Fixed maturity securities – available for sale | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies and corporations | $ | 475 | $ | — | $ | — | $ | (37) | $ | 439 | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of | U.S. Treasury securities and obligations of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government agencies and corporations | U.S. government agencies and corporations | $ | 450 | $ | — | $ | — | $ | (38) | $ | 412 | |||||||||||||||||||||||||||||||||||||||||||||||
Obligations of U.S. states and political subdivisions | Obligations of U.S. states and political subdivisions | 424 | — | 1 | (30) | 395 | Obligations of U.S. states and political subdivisions | 406 | (1) | — | (42) | 363 | ||||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | Corporate securities | 4,552 | (55) | 21 | (309) | 4,209 | Corporate securities | 4,577 | (57) | 11 | (371) | 4,160 | ||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | Asset-backed securities | 4,783 | — | 5 | (111) | 4,676 | Asset-backed securities | 5,029 | — | 14 | (63) | 4,980 | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | Mortgage-backed securities | Mortgage-backed securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | Commercial | 567 | — | — | (63) | 503 | Commercial | 626 | — | — | (70) | 556 | ||||||||||||||||||||||||||||||||||||||||||||||
Agency residential | Agency residential | 1,817 | — | 3 | (166) | 1,654 | Agency residential | 1,777 | — | — | (240) | 1,537 | ||||||||||||||||||||||||||||||||||||||||||||||
Non-agency residential | Non-agency residential | 60 | — | — | (1) | 59 | Non-agency residential | 216 | — | — | (9) | 207 | ||||||||||||||||||||||||||||||||||||||||||||||
Foreign government securities | Foreign government securities | 735 | — | 3 | (53) | 684 | Foreign government securities | 749 | — | 1 | (66) | 683 | ||||||||||||||||||||||||||||||||||||||||||||||
Foreign corporate securities | Foreign corporate securities | 1,729 | (1) | 5 | (149) | 1,583 | Foreign corporate securities | 1,690 | (1) | 2 | (157) | 1,534 | ||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities - available for sale | Total fixed maturity securities - available for sale | $ | 15,141 | $ | (57) | $ | 37 | $ | (919) | $ | 14,202 | Total fixed maturity securities - available for sale | $ | 15,520 | $ | (58) | $ | 29 | $ | (1,057) | $ | 14,434 |
At December 31, 2022 | At December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Amortized Cost | Allowances for Credit Losses | Unrealized Appreciation | Unrealized Depreciation | Fair Value | (Dollars in millions) | Amortized Cost | Allowances for Credit Losses | Unrealized Appreciation | Unrealized Depreciation | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities – available for sale | Fixed maturity securities – available for sale | Fixed maturity securities – available for sale | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies and corporations | $ | 575 | $ | — | $ | — | $ | (40) | $ | 535 | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of | U.S. Treasury securities and obligations of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government agencies and corporations | U.S. government agencies and corporations | $ | 575 | $ | — | $ | — | $ | (40) | $ | 535 | |||||||||||||||||||||||||||||||||||||||||||||||
Obligations of U.S. states and political subdivisions | Obligations of U.S. states and political subdivisions | 444 | — | 2 | (32) | 413 | Obligations of U.S. states and political subdivisions | 444 | — | 2 | (32) | 413 | ||||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | Corporate securities | 3,913 | (45) | 14 | (322) | 3,561 | Corporate securities | 3,913 | (45) | 14 | (322) | 3,561 | ||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | Asset-backed securities | 4,111 | — | 5 | (165) | 3,951 | Asset-backed securities | 4,111 | — | 5 | (165) | 3,951 | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | Mortgage-backed securities | Mortgage-backed securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | Commercial | 569 | — | — | (59) | 509 | Commercial | 569 | — | — | (59) | 509 | ||||||||||||||||||||||||||||||||||||||||||||||
Agency residential | Agency residential | 1,792 | — | 3 | (167) | 1,628 | Agency residential | 1,792 | — | 3 | (167) | 1,628 | ||||||||||||||||||||||||||||||||||||||||||||||
Non-agency residential | Non-agency residential | 3 | — | — | — | 3 | Non-agency residential | 3 | — | — | — | 3 | ||||||||||||||||||||||||||||||||||||||||||||||
Foreign government securities | Foreign government securities | 696 | — | 2 | (61) | 637 | Foreign government securities | 696 | — | 2 | (61) | 637 | ||||||||||||||||||||||||||||||||||||||||||||||
Foreign corporate securities | Foreign corporate securities | 1,597 | (1) | 4 | (167) | 1,433 | Foreign corporate securities | 1,597 | (1) | 4 | (167) | 1,433 | ||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities - available for sale | Total fixed maturity securities - available for sale | $ | 13,699 | $ | (46) | $ | 30 | $ | (1,013) | $ | 12,671 | Total fixed maturity securities - available for sale | $ | 13,699 | $ | (46) | $ | 30 | $ | (1,013) | $ | 12,671 |
At June 30, 2023 | At September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Amortized Cost | Allowances for Credit Loss | Unrealized Appreciation | Unrealized Depreciation | Fair Value | (Dollars in millions) | Amortized Cost | Allowances for Credit Loss | Unrealized Appreciation | Unrealized Depreciation | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities – held to maturity | Fixed maturity securities – held to maturity | Fixed maturity securities – held to maturity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | Corporate securities | $ | 152 | $ | (2) | $ | — | $ | (6) | $ | 144 | Corporate securities | $ | 156 | $ | (2) | $ | 1 | $ | (9) | $ | 146 | ||||||||||||||||||||||||||||||||||||
Asset-backed securities | Asset-backed securities | 603 | (6) | 2 | (15) | 585 | Asset-backed securities | 595 | (5) | 3 | (18) | 574 | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | Mortgage-backed securities | Mortgage-backed securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | Commercial | 14 | — | — | — | 13 | Commercial | 15 | — | — | — | 15 | ||||||||||||||||||||||||||||||||||||||||||||||
Foreign corporate securities | Foreign corporate securities | 28 | (1) | 2 | — | 29 | Foreign corporate securities | 24 | (1) | 1 | — | 24 | ||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities - held to maturity | Total fixed maturity securities - held to maturity | $ | 796 | $ | (8) | $ | 4 | $ | (21) | $ | 771 | Total fixed maturity securities - held to maturity | $ | 791 | $ | (8) | $ | 4 | $ | (27) | $ | 759 |
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 |
At June 30, 2023 | At December 31, 2022 | At September 30, 2023 | At December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | (Dollars in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||||||||||||||||
Fixed maturity securities – available for sale | Fixed maturity securities – available for sale | Fixed maturity securities – available for sale | ||||||||||||||||||||||||||||||||||||||||||||
Due in one year or less | Due in one year or less | $ | 830 | $ | 799 | $ | 581 | $ | 563 | Due in one year or less | $ | 803 | $ | 774 | $ | 581 | $ | 563 | ||||||||||||||||||||||||||||
Due after one year through five years | Due after one year through five years | 3,673 | 3,429 | 3,684 | 3,429 | Due after one year through five years | 3,632 | 3,368 | 3,684 | 3,429 | ||||||||||||||||||||||||||||||||||||
Due after five years through ten years | Due after five years through ten years | 2,007 | 1,809 | 2,003 | 1,760 | Due after five years through ten years | 2,046 | 1,802 | 2,003 | 1,760 | ||||||||||||||||||||||||||||||||||||
Due after ten years | Due after ten years | 1,404 | 1,273 | 958 | 827 | Due after ten years | 1,391 | 1,210 | 958 | 827 | ||||||||||||||||||||||||||||||||||||
Asset-backed securities | Asset-backed securities | 4,783 | 4,676 | 4,111 | 3,951 | Asset-backed securities | 5,029 | 4,980 | 4,111 | 3,951 | ||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | Mortgage-backed securities | Mortgage-backed securities | ||||||||||||||||||||||||||||||||||||||||||||
Commercial | Commercial | 567 | 503 | 569 | 509 | Commercial | 626 | 556 | 569 | 509 | ||||||||||||||||||||||||||||||||||||
Agency residential | Agency residential | 1,817 | 1,654 | 1,792 | 1,628 | Agency residential | 1,777 | 1,537 | 1,792 | 1,628 | ||||||||||||||||||||||||||||||||||||
Non-agency residential | Non-agency residential | 60 | 59 | 3 | 3 | Non-agency residential | 216 | 207 | 3 | 3 | ||||||||||||||||||||||||||||||||||||
Total fixed maturity securities - available for sale | Total fixed maturity securities - available for sale | $ | 15,141 | $ | 14,202 | $ | 13,699 | $ | 12,671 | Total fixed maturity securities - available for sale | $ | 15,520 | $ | 14,434 | $ | 13,699 | $ | 12,671 |
At June 30, 2023 | At December 31, 2022 | At September 30, 2023 | At December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | (Dollars in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||||||||||||||||
Fixed maturity securities – held to maturity | Fixed maturity securities – held to maturity | Fixed maturity securities – held to maturity | ||||||||||||||||||||||||||||||||||||||||||||
Due in one year or less | Due in one year or less | $ | 5 | $ | 5 | $ | 5 | $ | 5 | Due in one year or less | $ | 5 | $ | 5 | $ | 5 | $ | 5 | ||||||||||||||||||||||||||||
Due after one year through five years | Due after one year through five years | 64 | 61 | 63 | 61 | Due after one year through five years | 64 | 62 | 63 | 61 | ||||||||||||||||||||||||||||||||||||
Due after five years through ten years | Due after five years through ten years | 44 | 41 | 43 | 41 | Due after five years through ten years | 44 | 41 | 43 | 41 | ||||||||||||||||||||||||||||||||||||
Due after ten years | Due after ten years | 68 | 65 | 68 | 65 | Due after ten years | 68 | 62 | 68 | 65 | ||||||||||||||||||||||||||||||||||||
Asset-backed securities | Asset-backed securities | 603 | 585 | 634 | 614 | Asset-backed securities | 595 | 574 | 634 | 614 | ||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | Mortgage-backed securities | Mortgage-backed securities | ||||||||||||||||||||||||||||||||||||||||||||
Commercial | Commercial | 14 | 13 | 7 | 7 | Commercial | 15 | 15 | 7 | 7 | ||||||||||||||||||||||||||||||||||||
Total fixed maturity securities - held to maturity | Total fixed maturity securities - held to maturity | $ | 796 | $ | 771 | $ | 820 | $ | 793 | Total fixed maturity securities - held to maturity | $ | 791 | $ | 759 | $ | 820 | $ | 793 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||
Increase (decrease) during the period between the fair value and cost of investments carried at fair value, and deferred taxes thereon: | ||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) during the period between the fair value and cost of | Increase (decrease) during the period between the fair value and cost of | |||||||||||||||||||||||||||||||||||||||||||||
investments carried at fair value, and deferred taxes thereon: | investments carried at fair value, and deferred taxes thereon: | |||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities - available for sale and short-term investments | Fixed maturity securities - available for sale and short-term investments | $ | (49) | $ | (512) | $ | 105 | $ | (1,008) | Fixed maturity securities - available for sale and short-term investments | $ | (144) | $ | (307) | $ | (39) | $ | (1,315) | ||||||||||||||||||||||||||||
Change in unrealized appreciation (depreciation), pre-tax | (49) | (512) | 105 | (1,008) | ||||||||||||||||||||||||||||||||||||||||||
Change in URA(D), pre-tax | Change in URA(D), pre-tax | (144) | (307) | (39) | (1,315) | |||||||||||||||||||||||||||||||||||||||||
Deferred tax benefit (expense) | Deferred tax benefit (expense) | 10 | 107 | (22) | 211 | Deferred tax benefit (expense) | 30 | 65 | 8 | 276 | ||||||||||||||||||||||||||||||||||||
Change in unrealized appreciation (depreciation), net of deferred taxes, included in stockholder's equity | $ | (38) | $ | (405) | $ | 83 | $ | (797) | ||||||||||||||||||||||||||||||||||||||
Change in URA(D), net of deferred taxes, included in stockholder's equity | Change in URA(D), net of deferred taxes, included in stockholder's equity | $ | (113) | $ | (242) | $ | (31) | $ | (1,039) |
Duration of Unrealized Loss at June 30, 2023 By Security Type | Duration of Unrealized Loss at September 30, 2023 By Security Type | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less than 12 months | Greater than 12 months | Total | 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 | (Dollars in millions) | Fair Value | Gross Unrealized Depreciation | Fair Value | Gross Unrealized Depreciation | Fair Value | Gross Unrealized Depreciation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities - available for sale | Fixed maturity securities - available for sale | Fixed maturity securities - available for sale | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies and corporations | $ | 30 | $ | (1) | $ | 408 | $ | (36) | $ | 438 | $ | (37) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of | U.S. Treasury securities and obligations of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government agencies and corporations | U.S. government agencies and corporations | $ | 28 | $ | (1) | $ | 384 | $ | (37) | $ | 412 | $ | (38) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Obligations of U.S. states and political subdivisions | Obligations of U.S. states and political subdivisions | 77 | (1) | 199 | (29) | 276 | (30) | Obligations of U.S. states and political subdivisions | 108 | (3) | 206 | (39) | 314 | (42) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | Corporate securities | 1,135 | (84) | 2,128 | (224) | 3,263 | (308) | Corporate securities | 1,386 | (120) | 2,217 | (249) | 3,603 | (369) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | Asset-backed securities | 1,058 | (23) | 2,426 | (88) | 3,484 | (111) | Asset-backed securities | 747 | (20) | 2,177 | (43) | 2,923 | (63) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | Mortgage-backed securities | Mortgage-backed securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | Commercial | 17 | (1) | 480 | (62) | 497 | (63) | Commercial | 84 | (1) | 472 | (69) | 556 | (70) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency residential | Agency residential | 319 | (5) | 1,166 | (160) | 1,485 | (166) | Agency residential | 393 | (20) | 1,143 | (220) | 1,536 | (240) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-agency residential | Non-agency residential | 57 | (1) | 3 | — | 59 | (1) | Non-agency residential | 163 | (9) | 3 | — | 166 | (9) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign government securities | Foreign government securities | 108 | (2) | 484 | (51) | 591 | (53) | Foreign government securities | 137 | (5) | 504 | (61) | 642 | (66) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign corporate securities | Foreign corporate securities | 293 | (9) | 1,112 | (140) | 1,405 | (149) | Foreign corporate securities | 313 | (12) | 1,105 | (145) | 1,418 | (157) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | 3,092 | (126) | 8,406 | (792) | 11,498 | (918) | Total | 3,359 | (193) | 8,210 | (862) | 11,569 | (1,055) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities where an allowance for credit loss was recorded | Securities where an allowance for credit loss was recorded | — | — | — | (1) | 1 | (1) | Securities where an allowance for credit loss was recorded | — | (1) | — | (1) | 1 | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities - available for sale | Total fixed maturity securities - available for sale | $ | 3,093 | $ | (127) | $ | 8,406 | $ | (792) | $ | 11,499 | $ | (919) | Total fixed maturity securities - available for sale | $ | 3,360 | $ | (194) | $ | 8,210 | $ | (863) | $ | 11,569 | $ | (1,057) |
Duration of Unrealized Loss at June 30, 2023 By Maturity | Duration of Unrealized Loss at September 30, 2023 By Maturity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less than 12 months | Greater than 12 months | Total | 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 | (Dollars in millions) | Fair Value | Gross Unrealized Depreciation | Fair Value | Gross Unrealized Depreciation | Fair Value | Gross Unrealized Depreciation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities - available for sale | Fixed maturity securities - available for sale | Fixed maturity securities - available for sale | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due in one year or less | Due in one year or less | $ | 214 | $ | (3) | $ | 473 | $ | (15) | $ | 687 | $ | (18) | Due in one year or less | $ | 96 | $ | (1) | $ | 593 | $ | (15) | $ | 688 | $ | (16) | ||||||||||||||||||||||||||||||||||||||||||||
Due in one year through five years | Due in one year through five years | 533 | (16) | 2,413 | (228) | 2,946 | (244) | Due in one year through five years | 477 | (20) | 2,447 | (245) | 2,923 | (265) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due in five years through ten years | Due in five years through ten years | 405 | (16) | 1,140 | (186) | 1,545 | (203) | Due in five years through ten years | 584 | (30) | 1,098 | (212) | 1,682 | (242) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due after ten years | Due after ten years | 491 | (60) | 304 | (52) | 795 | (112) | Due after ten years | 816 | (93) | 278 | (58) | 1,094 | (151) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | Asset-backed securities | 1,058 | (23) | 2,426 | (88) | 3,484 | (111) | Asset-backed securities | 747 | (20) | 2,177 | (43) | 2,923 | (63) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | Mortgage-backed securities | 393 | (7) | 1,649 | (223) | 2,041 | (230) | Mortgage-backed securities | 640 | (31) | 1,617 | (288) | 2,257 | (319) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | 3,092 | (126) | 8,406 | (792) | 11,498 | (918) | Total | 3,359 | (193) | 8,210 | (862) | 11,569 | (1,055) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities where an allowance for credit loss was recorded | Securities where an allowance for credit loss was recorded | — | — | — | (1) | 1 | (1) | Securities where an allowance for credit loss was recorded | — | (1) | — | (1) | 1 | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities - available for sale | Total fixed maturity securities - available for sale | $ | 3,093 | $ | (127) | $ | 8,406 | $ | (792) | $ | 11,499 | $ | (919) | Total fixed maturity securities - available for sale | $ | 3,360 | $ | (194) | $ | 8,210 | $ | (863) | $ | 11,569 | $ | (1,057) |
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 | Greater than 12 months | Total | 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 | (Dollars in millions) | Fair Value | Gross Unrealized Depreciation | Fair Value | Gross Unrealized Depreciation | Fair Value | Gross Unrealized Depreciation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities - available for sale | Fixed maturity securities - available for sale | Fixed maturity securities - available for sale | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies and corporations | $ | 290 | $ | (14) | $ | 245 | $ | (26) | $ | 535 | $ | (40) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of | U.S. Treasury securities and obligations of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government agencies and corporations | U.S. government agencies and corporations | $ | 290 | $ | (14) | $ | 245 | $ | (26) | $ | 535 | $ | (40) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Obligations of U.S. states and political subdivisions | Obligations of U.S. states and political subdivisions | 235 | (23) | 27 | (9) | 261 | (32) | Obligations of U.S. states and political subdivisions | 235 | (23) | 27 | (9) | 261 | (32) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | Corporate securities | 2,138 | (175) | 841 | (146) | 2,979 | (321) | Corporate securities | 2,138 | (175) | 841 | (146) | 2,979 | (321) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | Asset-backed securities | 3,120 | (138) | 436 | (27) | 3,556 | (165) | Asset-backed securities | 3,120 | (138) | 436 | (27) | 3,556 | (165) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | Mortgage-backed securities | Mortgage-backed securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | Commercial | 464 | (50) | 36 | (9) | 500 | (59) | Commercial | 464 | (50) | 36 | (9) | 500 | (59) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency residential | Agency residential | 852 | (54) | 605 | (113) | 1,456 | (167) | Agency residential | 852 | (54) | 605 | (113) | 1,456 | (167) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-agency residential | Non-agency residential | 2 | — | 1 | — | 3 | — | Non-agency residential | 2 | — | 1 | — | 3 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign government securities | Foreign government securities | 455 | (36) | 144 | (25) | 599 | (61) | Foreign government securities | 455 | (36) | 144 | (25) | 599 | (61) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign corporate securities | Foreign corporate securities | 967 | (100) | 365 | (67) | 1,332 | (167) | Foreign corporate securities | 967 | (100) | 365 | (67) | 1,332 | (167) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 8,522 | $ | (591) | $ | 2,698 | $ | (421) | $ | 11,220 | $ | (1,012) | Total | $ | 8,522 | $ | (591) | $ | 2,698 | $ | (421) | $ | 11,220 | $ | (1,012) | ||||||||||||||||||||||||||||||||||||||||||||
Securities where an allowance for credit loss was recorded | Securities where an allowance for credit loss was recorded | 2 | (1) | — | — | 2 | (1) | Securities where an allowance for credit loss was recorded | 2 | (1) | — | — | 2 | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities - available for sale | Total fixed maturity securities - available for sale | $ | 8,524 | $ | (591) | $ | 2,698 | $ | (421) | $ | 11,222 | $ | (1,013) | Total fixed maturity securities - available for sale | $ | 8,524 | $ | (591) | $ | 2,698 | $ | (421) | $ | 11,222 | $ | (1,013) |
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) |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||
Fixed maturities | Fixed maturities | $ | 199 | $ | 116 | $ | 374 | $ | 210 | Fixed maturities | $ | 214 | $ | 129 | $ | 587 | $ | 339 | ||||||||||||||||||||||||||||
Equity securities | Equity securities | 1 | 5 | 2 | 9 | Equity securities | 1 | 7 | 3 | 15 | ||||||||||||||||||||||||||||||||||||
Short-term investments and cash | Short-term investments and cash | 16 | 1 | 27 | 1 | Short-term investments and cash | 24 | 4 | 51 | 4 | ||||||||||||||||||||||||||||||||||||
Other invested assets | Other invested assets | Other invested assets | ||||||||||||||||||||||||||||||||||||||||||||
Limited partnerships | Limited partnerships | 22 | 45 | (1) | 89 | Limited partnerships | 31 | (25) | 30 | 63 | ||||||||||||||||||||||||||||||||||||
Dividends from preferred shares of affiliate | Dividends from preferred shares of affiliate | 8 | 8 | 16 | 16 | Dividends from preferred shares of affiliate | 8 | 8 | 23 | 23 | ||||||||||||||||||||||||||||||||||||
Other | Other | 6 | 14 | 27 | 26 | Other | 15 | 11 | 42 | 37 | ||||||||||||||||||||||||||||||||||||
Gross investment income before adjustments | Gross investment income before adjustments | 252 | 188 | 444 | 350 | Gross investment income before adjustments | 291 | 132 | 736 | 482 | ||||||||||||||||||||||||||||||||||||
Funds held interest income (expense) | Funds held interest income (expense) | (1) | 1 | 1 | 3 | Funds held interest income (expense) | 1 | 1 | 3 | 5 | ||||||||||||||||||||||||||||||||||||
Interest income from Group | Interest income from Group | 3 | 2 | 7 | 4 | Interest income from Group | — | 3 | 7 | 7 | ||||||||||||||||||||||||||||||||||||
Gross investment income | Gross investment income | 253 | 190 | 453 | 357 | Gross investment income | 292 | 137 | 745 | 494 | ||||||||||||||||||||||||||||||||||||
Investment expenses | Investment expenses | (11) | (14) | (21) | (24) | Investment expenses | 14 | 13 | 35 | 37 | ||||||||||||||||||||||||||||||||||||
Net investment income | Net investment income | $ | 242 | $ | 176 | $ | 432 | $ | 333 | Net investment income | $ | 278 | $ | 124 | $ | 711 | $ | 457 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||
Fixed maturity securities | Fixed maturity securities | Fixed maturity securities | ||||||||||||||||||||||||||||||||||||||||||||
Allowances for credit losses | Allowances for credit losses | $ | — | $ | 2 | $ | (10) | $ | — | Allowances for credit losses | $ | (1) | $ | (12) | $ | (12) | $ | (12) | ||||||||||||||||||||||||||||
Net realized gains (losses) from dispositions | Net realized gains (losses) from dispositions | (7) | (10) | (9) | (15) | Net realized gains (losses) from dispositions | (12) | (45) | (21) | (60) | ||||||||||||||||||||||||||||||||||||
Equity securities, fair value | Equity securities, fair value | Equity securities, fair value | ||||||||||||||||||||||||||||||||||||||||||||
Net realized gains (losses) from dispositions | Net realized gains (losses) from dispositions | — | (30) | 7 | (38) | Net realized gains (losses) from dispositions | 1 | 57 | 8 | 19 | ||||||||||||||||||||||||||||||||||||
Gains (losses) from fair value adjustments | Gains (losses) from fair value adjustments | 8 | (186) | 11 | (317) | Gains (losses) from fair value adjustments | (13) | (134) | (2) | (451) | ||||||||||||||||||||||||||||||||||||
Other invested assets | Other invested assets | — | 1 | — | 5 | Other invested assets | — | 6 | — | 10 | ||||||||||||||||||||||||||||||||||||
Other invested assets, fair value | Other invested assets, fair value | Other invested assets, fair value | ||||||||||||||||||||||||||||||||||||||||||||
Gains (losses) from fair value adjustments | Gains (losses) from fair value adjustments | (23) | (155) | 1 | (239) | Gains (losses) from fair value adjustments | (34) | (111) | (32) | (350) | ||||||||||||||||||||||||||||||||||||
Short-term investment gains (losses) | Short-term investment gains (losses) | — | 1 | — | 1 | |||||||||||||||||||||||||||||||||||||||||
Total net gains (losses) on investments | Total net gains (losses) on investments | $ | (22) | $ | (378) | $ | — | $ | (605) | Total net gains (losses) on investments | $ | (59) | $ | (237) | $ | (59) | $ | (842) |
Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Securities | Asset Backed Securities | Foreign Corporate Securities | Total | Corporate Securities | Asset Backed Securities | Foreign Corporate Securities | Total | Corporate Securities | Municipals | Foreign Corporate Securities | Total | Corporate Securities | Municipals | Foreign Corporate Securities | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | (55) | $ | — | $ | (1) | $ | (56) | $ | (45) | $ | — | $ | (1) | $ | (46) | Beginning balance | $ | (55) | $ | — | $ | (1) | $ | (57) | $ | (45) | $ | — | $ | (1) | $ | (46) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit losses on securities where credit losses were not previously recorded | (2) | — | — | (2) | (14) | — | — | (14) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increases in allowance on previously impaired securities | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Decreases in allowance on previously impaired securities | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit losses on securities where credit | Credit losses on securities where credit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
losses were not previously recorded | losses were not previously recorded | (3) | — | — | (3) | (17) | — | — | (17) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increases in allowance on previously | Increases in allowance on previously | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
impaired securities | impaired securities | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Decreases in allowance on previously | Decreases in allowance on previously | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
impaired securities | impaired securities | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reduction in allowance due to disposals | Reduction in allowance due to disposals | 1 | — | — | 1 | 4 | — | — | 4 | Reduction in allowance due to disposals | 2 | — | — | 2 | 5 | — | — | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, end of period | Balance, end of period | $ | (55) | $ | — | $ | (1) | $ | (57) | $ | (55) | $ | — | $ | (1) | $ | (57) | Balance, end of period | $ | (57) | $ | (1) | $ | (1) | $ | (58) | $ | (57) | $ | (1) | $ | (1) | $ | (58) |
Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Corporate Securities | Asset Backed Securities | Foreign Corporate Securities | Total | Corporate Securities | Asset Backed Securities | Foreign Corporate Securities | Total | (Dollars in millions) | Corporate Securities | Asset Backed Securities | Foreign Corporate Securities | Total | Corporate Securities | Asset Backed Securities | Foreign Corporate Securities | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | (20) | $ | (8) | $ | (1) | $ | (29) | $ | (19) | $ | (8) | $ | — | $ | (27) | Beginning balance | $ | (26) | $ | — | $ | (2) | $ | (27) | $ | (19) | $ | (8) | $ | — | $ | (27) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit losses on securities where credit losses were not previously recorded | (5) | — | — | (5) | (7) | — | (1) | (8) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increases in allowance on previously impaired securities | (1) | — | — | (1) | (1) | — | — | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Decreases in allowance on previously impaired securities | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit losses on securities where credit | Credit losses on securities where credit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
losses were not previously recorded | losses were not previously recorded | — | — | — | — | (7) | — | (1) | (8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increases in allowance on previously | Increases in allowance on previously | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
impaired securities | impaired securities | (3) | — | — | (3) | (4) | — | — | (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Decreases in allowance on previously | Decreases in allowance on previously | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
impaired securities | impaired securities | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reduction in allowance due to disposals | Reduction in allowance due to disposals | — | 8 | — | 8 | 1 | 8 | — | 9 | Reduction in allowance due to disposals | — | — | — | — | 1 | 8 | 1 | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, end of period | Balance, end of period | $ | (26) | $ | — | $ | (2) | $ | (27) | $ | (26) | $ | — | $ | (2) | $ | (27) | Balance, end of period | $ | (29) | $ | — | $ | (1) | $ | (30) | $ | (29) | $ | — | $ | (1) | $ | (30) |
Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Securities | Asset Backed Securities | Foreign Corporate Securities | Total | Corporate Securities | Asset Backed Securities | Foreign Corporate Securities | Total | Corporate Securities | Asset Backed Securities | Foreign Corporate Securities | Total | Corporate Securities | Asset Backed Securities | Foreign Corporate Securities | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | (2) | $ | (6) | $ | (1) | $ | (9) | $ | (2) | $ | (6) | $ | (1) | $ | (9) | Beginning balance | $ | (2) | $ | (6) | $ | (1) | $ | (8) | $ | (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 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit losses on securities where credit | Credit losses on securities where credit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
losses were not previously recorded | losses were not previously recorded | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increases in allowance on previously | Increases in allowance on previously | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
impaired securities | impaired securities | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Decreases in allowance on previously | Decreases in allowance on previously | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
impaired securities | impaired securities | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reduction in allowance due to disposals | Reduction in allowance due to disposals | — | — | — | — | — | — | — | — | Reduction in allowance due to disposals | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, end of period | Balance, end of period | $ | (2) | $ | (6) | $ | (1) | $ | (8) | $ | (2) | $ | (6) | $ | (1) | $ | (8) | Balance, end of period | $ | (2) | $ | (5) | $ | (1) | $ | (8) | $ | (2) | $ | (5) | $ | (1) | $ | (8) |
Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Corporate Securities | Asset Backed Securities | Foreign Corporate Securities | Total | Corporate Securities | Asset Backed Securities | Foreign Corporate Securities | Total | |||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||
Credit losses on securities where credit | |||||||||||||||||||||||||||||||||||||||||||||||
losses were not previously recorded | (2) | (6) | (1) | (9) | (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) | $ | (2) | $ | (6) | $ | (1) | $ | (9) |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||
Proceeds from sales of fixed maturity securities - available for sale | Proceeds from sales of fixed maturity securities - available for sale | $ | 59 | $ | 245 | $ | 109 | $ | 511 | Proceeds from sales of fixed maturity securities - available for sale | $ | 209 | $ | 301 | $ | 318 | $ | 812 | ||||||||||||||||||||||||||||
Gross gains from dispositions | Gross gains from dispositions | 1 | 3 | 4 | 6 | Gross gains from dispositions | 1 | 1 | 4 | 7 | ||||||||||||||||||||||||||||||||||||
Gross losses from dispositions | Gross losses from dispositions | (8) | (13) | (12) | (21) | Gross losses from dispositions | (13) | (46) | (25) | (67) | ||||||||||||||||||||||||||||||||||||
Proceeds from sales of equity securities | Proceeds from sales of equity securities | $ | — | $ | 343 | $ | 46 | $ | 425 | Proceeds from sales of equity securities | $ | 80 | $ | 591 | $ | 126 | $ | 1,016 | ||||||||||||||||||||||||||||
Gross gains from dispositions | Gross gains from dispositions | — | 4 | 7 | 8 | Gross gains from dispositions | 2 | 59 | 8 | 67 | ||||||||||||||||||||||||||||||||||||
Gross losses from dispositions | Gross losses from dispositions | — | (34) | — | (46) | Gross losses from dispositions | — | (2) | — | (48) |
Fair Value Measurement Using | Fair Value Measurement Using | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | June 30, 2023 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | (Dollars in millions) | September 30, 2023 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||||
Assets: | Assets: | Assets: | ||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities - available for sale | Fixed maturities - available for sale | Fixed maturities - available for sale | ||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government agencies and corporations | $ | 439 | $ | — | $ | 439 | $ | — | ||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government | U.S. Treasury securities and obligations of U.S. government | |||||||||||||||||||||||||||||||||||||||||||||
agencies and corporations | agencies and corporations | $ | 412 | $ | — | $ | 412 | $ | — | |||||||||||||||||||||||||||||||||||||
Obligations of U.S. states and political subdivisions | Obligations of U.S. states and political subdivisions | 395 | — | 395 | — | Obligations of U.S. states and political subdivisions | 363 | — | 363 | — | ||||||||||||||||||||||||||||||||||||
Corporate securities | Corporate securities | 4,209 | — | 3,498 | 711 | Corporate securities | 4,160 | — | 3,436 | 725 | ||||||||||||||||||||||||||||||||||||
Asset-backed securities | Asset-backed securities | 4,676 | — | 3,561 | 1,115 | Asset-backed securities | 4,980 | — | 3,800 | 1,180 | ||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | Mortgage-backed securities | Mortgage-backed securities | ||||||||||||||||||||||||||||||||||||||||||||
Commercial | Commercial | 503 | — | 503 | — | Commercial | 556 | — | 556 | — | ||||||||||||||||||||||||||||||||||||
Agency residential | Agency residential | 1,654 | — | 1,654 | — | Agency residential | 1,537 | — | 1,537 | — | ||||||||||||||||||||||||||||||||||||
Non-agency residential | Non-agency residential | 59 | — | 59 | — | Non-agency residential | 207 | — | 207 | — | ||||||||||||||||||||||||||||||||||||
Foreign government securities | Foreign government securities | 684 | — | 684 | — | Foreign government securities | 683 | — | 683 | — | ||||||||||||||||||||||||||||||||||||
Foreign corporate securities | Foreign corporate securities | 1,583 | — | 1,567 | 16 | Foreign corporate securities | 1,534 | — | 1,518 | 16 | ||||||||||||||||||||||||||||||||||||
Total fixed maturities - available for sale | Total fixed maturities - available for sale | 14,202 | — | 12,360 | 1,842 | Total fixed maturities - available for sale | 14,434 | — | 12,513 | 1,921 | ||||||||||||||||||||||||||||||||||||
Equity securities, fair value | Equity securities, fair value | 167 | 145 | 22 | — | Equity securities, fair value | 79 | 58 | 21 | — | ||||||||||||||||||||||||||||||||||||
Other invested assets, fair value | Other invested assets, fair value | 1,474 | — | — | 1,474 | Other invested assets, fair value | 1,440 | — | — | 1,440 |
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 |
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 |
Total Fixed Maturities - Available for Sale | Total Fixed Maturities - Available for Sale | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Corporate Securities | Asset Backed Securities | Foreign Corporate | Total | Corporate Securities | Asset Backed Securities | Foreign Corporate | Total | (Dollars in millions) | Corporate Securities | Asset Backed Securities | Foreign Corporate | Total | Corporate Securities | Asset Backed Securities | Foreign Corporate | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance of fixed maturities | Beginning balance of fixed maturities | $ | 709 | $ | 1,020 | $ | 16 | $ | 1,745 | $ | 715 | $ | 994 | $ | 16 | $ | 1,725 | Beginning balance of fixed maturities | $ | 711 | $ | 1,115 | $ | 16 | $ | 1,842 | $ | 715 | $ | 994 | $ | 16 | $ | 1,725 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total gains or (losses) (realized/unrealized) | Total gains or (losses) (realized/unrealized) | Total gains or (losses) (realized/unrealized) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Included in earnings | Included in earnings | 1 | — | — | 1 | 2 | — | — | 2 | Included in earnings | 1 | — | — | 1 | 3 | — | — | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | Included in other comprehensive income (loss) | (2) | (8) | — | (9) | (6) | 10 | — | 4 | Included in other comprehensive income (loss) | — | (3) | — | (3) | (5) | 7 | — | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases, issuances and settlements | Purchases, issuances and settlements | 3 | 103 | — | 105 | — | 111 | — | 111 | Purchases, issuances and settlements | 12 | 68 | — | 80 | 12 | 179 | — | 191 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers in (out) of Level 3 and reclassification of securities in/(out) investment categories | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers in/(out) of Level 3 and reclassification of securities in/(out) investment categories | Transfers in/(out) of Level 3 and reclassification of securities in/(out) investment categories | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance of fixed maturities | Ending balance of fixed maturities | $ | 711 | $ | 1,115 | $ | 16 | $ | 1,842 | $ | 711 | $ | 1,115 | $ | 16 | $ | 1,842 | Ending balance of fixed maturities | $ | 725 | $ | 1,180 | $ | 16 | $ | 1,921 | $ | 725 | $ | 1,180 | $ | 16 | $ | 1,921 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | 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 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | 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 | $ | — | $ | — | $ | 1 |
Total Fixed Maturities - Available for Sale | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Corporate Securities | Asset Backed Securities | CMBS | Foreign Corporate | Total | Corporate Securities | Asset Backed Securities | CMBS | Foreign Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance of fixed maturities | $ | 715 | $ | 1,389 | $ | 6 | $ | 16 | $ | 2,125 | $ | 730 | $ | 1,251 | $ | — | $ | 16 | $ | 1,997 | |||||||||||||||||||||||||||||||||||||||
Total gains or (losses) (realized/unrealized) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Included in earnings | (5) | — | — | — | (4) | (3) | — | — | — | (3) | |||||||||||||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | (3) | (47) | — | (4) | (54) | (7) | (76) | — | (4) | (87) | |||||||||||||||||||||||||||||||||||||||||||||||||
Purchases, issuances and settlements | 28 | 62 | — | 8 | 97 | 15 | 228 | 6 | 8 | 256 | |||||||||||||||||||||||||||||||||||||||||||||||||
Transfers in (out) of Level 3 and reclassification of securities in/(out) investment categories | 128 | (148) | — | 20 | — | 128 | (148) | — | 20 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance of fixed maturities | $ | 862 | $ | 1,255 | $ | 6 | $ | 40 | $ | 2,163 | $ | 862 | $ | 1,255 | $ | 6 | $ | 40 | $ | 2,163 | |||||||||||||||||||||||||||||||||||||||
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 | $ | (5) | $ | 8 | $ | — | $ | — | $ | 2 | $ | (5) | $ | 8 | $ | — | $ | — | $ | 3 |
Total Fixed Maturities - Available for Sale | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Corporate Securities | Asset Backed Securities | CMBS | Foreign Corporate | Total | Corporate Securities | Asset Backed Securities | CMBS | Foreign Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance of fixed maturities | $ | 862 | $ | 1,255 | $ | 6 | $ | 40 | $ | 2,163 | $ | 730 | $ | 1,251 | $ | — | $ | 16 | $ | 1,997 | |||||||||||||||||||||||||||||||||||||||
Total gains or (losses) (realized/unrealized) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Included in earnings | (3) | — | — | — | (3) | (6) | — | — | — | (6) | |||||||||||||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income (loss) | (6) | 65 | — | — | 59 | (13) | (11) | — | (4) | (28) | |||||||||||||||||||||||||||||||||||||||||||||||||
Purchases, issuances and settlements | 27 | 159 | — | — | 186 | 42 | 387 | 6 | 8 | 443 | |||||||||||||||||||||||||||||||||||||||||||||||||
Transfers in/(out) of Level 3 and reclassification of securities in/(out) investment categories | (163) | (587) | (6) | (24) | (779) | (35) | (735) | (6) | (4) | (779) | |||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance of fixed maturities | $ | 719 | $ | 893 | $ | — | $ | 16 | $ | 1,628 | $ | 719 | $ | 893 | $ | — | $ | 16 | $ | 1,628 | |||||||||||||||||||||||||||||||||||||||
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 | $ | (3) | $ | — | $ | — | $ | — | $ | (3) | $ | (8) | $ | 8 | $ | — | $ | — | $ | — |
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | (Dollars in millions) | 2023 | 2022 | ||||||||||||||||
Gross reserves beginning of period | Gross reserves beginning of period | $ | 14,977 | $ | 13,121 | Gross reserves beginning of period | $ | 14,977 | $ | 13,121 | ||||||||||||
Less reinsurance recoverables on unpaid losses | Less reinsurance recoverables on unpaid losses | (3,684) | (3,651) | Less reinsurance recoverables on unpaid losses | (3,684) | (3,651) | ||||||||||||||||
Net reserves beginning of period | Net reserves beginning of period | 11,294 | 9,470 | Net reserves beginning of period | 11,294 | 9,470 | ||||||||||||||||
Incurred related to: | Incurred related to: | Incurred related to: | ||||||||||||||||||||
Current year | Current year | 2,720 | 2,521 | Current year | 4,159 | 4,606 | ||||||||||||||||
Prior years | Prior years | (1) | 9 | Prior years | 31 | 18 | ||||||||||||||||
Total incurred losses and LAE | Total incurred losses and LAE | 2,719 | 2,530 | Total incurred losses and LAE | 4,190 | 4,624 | ||||||||||||||||
Paid related to: | Paid related to: | Paid related to: | ||||||||||||||||||||
Current year | Current year | 937 | 775 | Current year | 1,737 | 1,502 | ||||||||||||||||
Prior years | Prior years | 1,019 | 1,063 | Prior years | 1,380 | 1,303 | ||||||||||||||||
Total paid losses and LAE | Total paid losses and LAE | 1,956 | 1,838 | Total paid losses and LAE | 3,118 | 2,805 | ||||||||||||||||
Foreign exchange/translation adjustment | Foreign exchange/translation adjustment | 15 | (17) | Foreign exchange/translation adjustment | — | (70) | ||||||||||||||||
Net reserves end of period | Net reserves end of period | 12,072 | 10,145 | Net reserves end of period | 12,365 | 11,221 | ||||||||||||||||
Plus reinsurance recoverables on unpaid losses | Plus reinsurance recoverables on unpaid losses | 3,440 | 3,593 | Plus reinsurance recoverables on unpaid losses | 3,304 | 3,628 | ||||||||||||||||
Gross reserves end of period | Gross reserves end of period | $ | 15,512 | $ | 13,738 | Gross reserves end of period | $ | 15,669 | $ | 14,849 |
Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Reinsurance | Insurance | Total | Reinsurance | Insurance | Total | (Dollars in millions) | Reinsurance | Insurance | Total | Reinsurance | Insurance | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross written premiums | Gross written premiums | $ | 1,791 | $ | 1,125 | $ | 2,915 | $ | 3,434 | $ | 1,977 | $ | 5,411 | Gross written premiums | $ | 1,985 | $ | 884 | $ | 2,869 | $ | 5,420 | $ | 2,860 | $ | 8,280 | ||||||||||||||||||||||||||||||||||||||||||||
Net written premiums | Net written premiums | 1,580 | 816 | 2,396 | 2,953 | 1,506 | 4,459 | Net written premiums | 1,703 | 647 | 2,350 | 4,656 | 2,153 | 6,809 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premiums earned | Premiums earned | $ | 1,417 | $ | 714 | $ | 2,131 | $ | 2,784 | $ | 1,416 | $ | 4,200 | Premiums earned | $ | 1,437 | $ | 702 | $ | 2,139 | $ | 4,220 | $ | 2,118 | $ | 6,339 | ||||||||||||||||||||||||||||||||||||||||||||
Incurred losses and LAE | Incurred losses and LAE | 864 | 460 | 1,325 | 1,794 | 925 | 2,719 | Incurred losses and LAE | 1,010 | 460 | 1,471 | 2,804 | 1,386 | 4,190 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commission and brokerage | Commission and brokerage | 363 | 70 | 433 | 724 | 145 | 869 | Commission and brokerage | 378 | 76 | 454 | 1,102 | 221 | 1,323 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other underwriting expenses | Other underwriting expenses | 36 | 100 | 136 | 75 | 200 | 275 | Other underwriting expenses | 46 | 103 | 149 | 121 | 303 | 424 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underwriting gain (loss) | Underwriting gain (loss) | $ | 153 | $ | 84 | $ | 237 | $ | 191 | $ | 145 | $ | 336 | Underwriting gain (loss) | $ | 3 | $ | 63 | $ | 66 | $ | 194 | $ | 208 | $ | 402 | ||||||||||||||||||||||||||||||||||||||||||||
Net investment income | Net investment income | 242 | 432 | Net investment income | 278 | 711 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net gains (losses) on investments | Net gains (losses) on investments | (22) | — | Net gains (losses) on investments | (59) | (59) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate expense | (4) | (10) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate expenses | Corporate expenses | (8) | (18) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest, fee and bond issue cost amortization expense | Interest, fee and bond issue cost amortization expense | (33) | (65) | Interest, fee and bond issue cost amortization expense | (34) | (99) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income (expense) | Other income (expense) | (10) | (15) | Other income (expense) | 2 | (12) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before taxes | Income (loss) before taxes | $ | 411 | $ | 679 | Income (loss) before taxes | $ | 246 | $ | 926 |
Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Reinsurance | Insurance | Total | Reinsurance | Insurance | Total | (Dollars in millions) | Reinsurance | Insurance | Total | Reinsurance | Insurance | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross written premiums | Gross written premiums | $ | 1,394 | $ | 1,043 | $ | 2,437 | $ | 2,774 | $ | 1,868 | $ | 4,642 | Gross written premiums | $ | 1,681 | $ | 905 | $ | 2,585 | $ | 4,454 | $ | 2,773 | $ | 7,227 | ||||||||||||||||||||||||||||||||||||||||||||
Net written premiums | Net written premiums | 1,245 | 750 | 1,995 | 2,430 | 1,360 | 3,791 | Net written premiums | 1,506 | 722 | 2,228 | 3,936 | 2,083 | 6,019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premiums earned | Premiums earned | $ | 1,295 | $ | 659 | $ | 1,954 | $ | 2,504 | $ | 1,279 | $ | 3,783 | Premiums earned | $ | 1,398 | $ | 706 | $ | 2,104 | $ | 3,902 | $ | 1,985 | $ | 5,887 | ||||||||||||||||||||||||||||||||||||||||||||
Incurred losses and LAE | Incurred losses and LAE | 875 | 429 | 1,304 | 1,696 | 834 | 2,530 | Incurred losses and LAE | 1,531 | 564 | 2,094 | 3,227 | 1,398 | 4,624 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commission and brokerage | Commission and brokerage | 332 | 77 | 409 | 647 | 146 | 793 | Commission and brokerage | 337 | 85 | 423 | 985 | 231 | 1,216 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other underwriting expenses | Other underwriting expenses | 32 | 88 | 120 | 63 | 175 | 238 | Other underwriting expenses | 33 | 94 | 127 | 97 | 269 | 365 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underwriting gain (loss) | Underwriting gain (loss) | $ | 55 | $ | 66 | $ | 121 | $ | 98 | $ | 124 | $ | 222 | Underwriting gain (loss) | $ | (504) | $ | (37) | $ | (541) | $ | (406) | $ | 87 | $ | (319) | ||||||||||||||||||||||||||||||||||||||||||||
Net investment income | Net investment income | 176 | 333 | Net investment income | 124 | 457 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net gains (losses) on investments | Net gains (losses) on investments | (378) | (605) | Net gains (losses) on investments | (237) | (842) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate expense | (6) | (12) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate expenses | Corporate expenses | (5) | (17) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest, fee and bond issue cost amortization expense | Interest, fee and bond issue cost amortization expense | (24) | (48) | Interest, fee and bond issue cost amortization expense | (26) | (74) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income (expense) | Other income (expense) | — | (9) | Other income (expense) | 7 | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before taxes | Income (loss) before taxes | $ | (110) | $ | (119) | Income (loss) before taxes | $ | (677) | $ | (796) |
June 30, 2023 | December 31, 2022 | September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Date Issued | Date Due | Principal Amounts | Consolidated Balance Sheet Amount | Fair Value | Consolidated Balance Sheet Amount | Fair Value | (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 | 4.868% Senior notes | 6/5/2014 | 6/1/2044 | 400 | $ | 397 | $ | 360 | $ | 397 | $ | 343 | 4.868% Senior notes | 6/5/2014 | 6/1/2044 | $ | 400 | $ | 398 | $ | 331 | $ | 397 | $ | 343 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3.5% Senior notes | 3.5% Senior notes | 10/7/2020 | 10/15/2050 | 1,000 | 981 | 714 | 981 | 677 | 3.5% Senior notes | 10/7/2020 | 10/15/2050 | 1,000 | 981 | 642 | 981 | 677 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3.125% Senior notes | 3.125% Senior notes | 10/4/2021 | 10/15/2052 | 1,000 | 970 | 664 | 969 | 627 | 3.125% Senior notes | 10/4/2021 | 10/15/2052 | 1,000 | 970 | 595 | 969 | 627 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2,400 | $ | 2,348 | $ | 1,738 | $ | 2,347 | $ | 1,647 | $ | 2,400 | $ | 2,348 | $ | 1,567 | $ | 2,347 | $ | 1,647 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Interest Paid | Payable Dates | 2023 | 2022 | 2023 | 2022 | (Dollars in millions) | Interest Paid | Payable Dates | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4.868% Senior notes | 4.868% Senior notes | semi-annually | June 1/December 1 | $ | 5 | $ | 5 | $ | 10 | $ | 10 | 4.868% Senior notes | semi-annually | June 1/December 1 | $ | 5 | $ | 5 | $ | 15 | $ | 15 | ||||||||||||||||||||||||||||||||||||||||||||||||
3.5% Senior notes | 3.5% Senior notes | semi-annually | April 15/October 15 | 9 | 9 | 18 | 18 | 3.5% Senior notes | semi-annually | April 15/October 15 | 9 | 9 | 26 | 26 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3.125% Senior notes | 3.125% Senior notes | semi-annually | April 15/October 15 | 8 | 8 | 16 | 16 | 3.125% Senior notes | semi-annually | April 15/October 15 | 8 | 8 | 24 | 24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 22 | $ | 22 | $ | 43 | $ | 43 | $ | 22 | $ | 22 | $ | 65 | $ | 65 |
June 30, 2023 | December 31, 2022 | September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original Principal Amount | Maturity Date | Consolidated Balance Sheet Amount | Fair Value | Consolidated Balance Sheet Amount | Fair Value | Original Principal Amount | Maturity Date | Consolidated Balance Sheet Amount | Fair Value | Consolidated Balance Sheet Amount | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Date Issued | Scheduled | Final | (Dollars in millions) | Date Issued | Scheduled | Final | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term subordinated notes | Long-term subordinated notes | 4/26/2007 | $ | 400 | 5/15/2037 | 5/1/2067 | $ | 218 | $ | 187 | $ | 218 | $ | 187 | Long-term subordinated notes | 4/26/2007 | $ | 400 | 5/15/2037 | 5/1/2067 | $ | 218 | $ | 197 | $ | 218 | $ | 187 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||
Interest expense incurred | Interest expense incurred | $ | 4 | $ | 2 | $ | 8 | $ | 3 | Interest expense incurred | $ | 4 | $ | 3 | $ | 12 | $ | 6 |
(Dollars in millions) | ||||||||||||||||||||||||||||||||
Class | Description | Effective Date | Expiration Date | Limit | Coverage Basis | |||||||||||||||||||||||||||
Series 2019-1 Class A-1 | US, Canada, Puerto Rico – Named Storm and Earthquake Events | 12/12/2019 | 12/19/2023 | 150 | Occurrence | |||||||||||||||||||||||||||
Series 2019-1 Class B-1 | US, Canada, Puerto Rico – Named Storm and Earthquake Events | 12/12/2019 | 12/19/2023 | 275 | Aggregate | |||||||||||||||||||||||||||
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 | 85 | Aggregate | |||||||||||||||||||||||||||
Series 2021-1 Class C-1 | US, Canada, Puerto Rico – Named Storm and Earthquake Events | 4/8/2021 | 4/21/2025 | 85 | 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 | 90 | Aggregate | |||||||||||||||||||||||||||
Series 2021-1 Class C-2 | US, Canada, Puerto Rico – Named Storm and Earthquake Events | 4/8/2021 | 4/20/2026 | 90 | 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 | $ | 1,800 |
Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Before Tax | Tax Effect | Net of Tax | Before Tax | Tax Effect | Net of Tax | (Dollars in millions) | Before Tax | Tax Effect | Net of Tax | Before Tax | Tax Effect | Net of Tax | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized appreciation (depreciation) ("URA(D)") on securities - non-credit related | $ | (56) | $ | 12 | $ | (44) | $ | 86 | $ | (18) | $ | 68 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
URA(D) on securities - non-credit related | URA(D) on securities - non-credit related | $ | (157) | $ | 33 | $ | (124) | $ | (72) | $ | 15 | $ | (56) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of net realized losses (gains) included in net income (loss) | Reclassification of net realized losses (gains) included in net income (loss) | 8 | (2) | 6 | 19 | (4) | 15 | Reclassification of net realized losses (gains) included in net income (loss) | 14 | (3) | 11 | 33 | (7) | 26 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | Foreign currency translation adjustments | (5) | 1 | (4) | 3 | (1) | 2 | Foreign currency translation adjustments | (14) | 3 | (11) | (11) | 2 | (9) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of amortization of net gain (loss) included in net income (loss) | Reclassification of amortization of net gain (loss) included in net income (loss) | 1 | — | — | 1 | — | 1 | Reclassification of amortization of net gain (loss) included in net income (loss) | 1 | — | — | 2 | — | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other comprehensive income (loss) | Total other comprehensive income (loss) | $ | (53) | $ | 11 | $ | (42) | $ | 109 | $ | (23) | $ | 86 | Total other comprehensive income (loss) | $ | (157) | $ | 33 | $ | (124) | $ | (48) | $ | 10 | $ | (38) |
Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Before Tax | Tax Effect | Net of Tax | Before Tax | Tax Effect | Net of Tax | (Dollars in millions) | Before Tax | Tax Effect | Net of Tax | Before Tax | Tax Effect | Net of Tax | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized appreciation (depreciation) ("URA(D)") on securities - non-credit related | $ | (520) | $ | 109 | $ | (411) | $ | (1,019) | $ | 213 | $ | (805) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
URA(D) on securities - non-credit related | URA(D) on securities - non-credit related | $ | (357) | $ | 75 | $ | (282) | $ | (1,376) | $ | 288 | $ | (1,087) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of net realized losses (gains) included in net income (loss) | Reclassification of net realized losses (gains) included in net income (loss) | 8 | (2) | 6 | 11 | (2) | 8 | Reclassification of net realized losses (gains) included in net income (loss) | 50 | (11) | 40 | 61 | (13) | 48 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | Foreign currency translation adjustments | (12) | 3 | (10) | (15) | 3 | (12) | Foreign currency translation adjustments | (37) | 8 | (29) | (52) | 11 | (41) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of amortization of net gain (loss) included in net income (loss) | Reclassification of amortization of net gain (loss) included in net income (loss) | 1 | — | 1 | 2 | — | 2 | Reclassification of amortization of net gain (loss) included in net income (loss) | — | — | — | 3 | (1) | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other comprehensive income (loss) | Total other comprehensive income (loss) | $ | (524) | $ | 110 | $ | (414) | $ | (1,021) | $ | 214 | $ | (807) | Total other comprehensive income (loss) | $ | (343) | $ | 72 | $ | (271) | $ | (1,364) | $ | 285 | $ | (1,078) |
Three Months Ended June 30, | Six Months Ended June 30, | Affected line item within the statements of operations and comprehensive income (loss) | Three Months Ended September 30, | Nine Months Ended September 30, | Affected line item within the statements of operations and comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AOCI component | AOCI component | 2023 | 2022 | 2023 | 2022 | AOCI component | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
URA(D) on securities | URA(D) on securities | $ | 8 | $ | 8 | $ | 19 | $ | 11 | Other net gains (losses) on investments | URA(D) on securities | $ | 14 | $ | 50 | $ | 33 | $ | 61 | Other net gains (losses) on investments | ||||||||||||||||||||||||||||||||||||||||||||
(2) | (2) | (4) | (2) | Income tax expense (benefit) | (3) | (11) | (7) | (13) | Income tax expense (benefit) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 6 | $ | 6 | $ | 15 | $ | 8 | Net income (loss) | $ | 11 | $ | 40 | $ | 26 | $ | 48 | Net income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||
Benefit plan net gain (loss) | Benefit plan net gain (loss) | $ | 1 | $ | 1 | $ | 1 | $ | 2 | Other underwriting expenses | Benefit plan net gain (loss) | $ | 1 | $ | — | $ | 2 | $ | 3 | Other underwriting expenses | ||||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | Income tax expense (benefit) | — | — | — | (1) | Income tax expense (benefit) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | — | $ | 1 | $ | 1 | $ | 2 | Net income (loss) | $ | — | $ | — | $ | 1 | $ | 2 | Net income (loss) |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||
Beginning balance of URA(D) on securities | Beginning balance of URA(D) on securities | $ | (695) | $ | (270) | $ | (816) | $ | 122 | Beginning balance of URA(D) on securities | $ | (734) | $ | (675) | $ | (816) | $ | 122 | ||||||||||||||||||||||||||||
Current period change in URA(D) of investments - non-credit related | Current period change in URA(D) of investments - non-credit related | (38) | (405) | 83 | (797) | Current period change in URA(D) of investments - non-credit related | (113) | (242) | (31) | (1,039) | ||||||||||||||||||||||||||||||||||||
Ending balance of URA(D) on securities | Ending balance of URA(D) on securities | (734) | (675) | (734) | (675) | Ending balance of URA(D) on securities | (847) | (917) | (847) | (917) | ||||||||||||||||||||||||||||||||||||
Beginning balance of foreign currency translation adjustments | Beginning balance of foreign currency translation adjustments | 8 | 18 | 2 | 20 | Beginning balance of foreign currency translation adjustments | 4 | 8 | 2 | 20 | ||||||||||||||||||||||||||||||||||||
Current period change in foreign currency translation adjustments | Current period change in foreign currency translation adjustments | (4) | (10) | 2 | (12) | Current period change in foreign currency translation adjustments | (11) | (29) | (9) | (41) | ||||||||||||||||||||||||||||||||||||
Ending balance of foreign currency translation adjustments | Ending balance of foreign currency translation adjustments | 4 | 8 | 4 | 8 | Ending balance of foreign currency translation adjustments | (7) | (21) | (7) | (21) | ||||||||||||||||||||||||||||||||||||
Beginning balance of benefit plan net gain (loss) | Beginning balance of benefit plan net gain (loss) | (33) | (50) | (33) | (51) | Beginning balance of benefit plan net gain (loss) | (32) | (49) | (33) | (51) | ||||||||||||||||||||||||||||||||||||
Current period change in benefit plan net gain (loss) | Current period change in benefit plan net gain (loss) | — | 1 | 1 | 2 | Current period change in benefit plan net gain (loss) | — | — | 1 | 2 | ||||||||||||||||||||||||||||||||||||
Ending balance of benefit plan net gain (loss) | Ending balance of benefit plan net gain (loss) | (32) | (49) | (32) | (49) | Ending balance of benefit plan net gain (loss) | (32) | (49) | (32) | (49) | ||||||||||||||||||||||||||||||||||||
Ending balance of accumulated other comprehensive income (loss) | Ending balance of accumulated other comprehensive income (loss) | $ | (762) | $ | (716) | $ | (762) | $ | (716) | Ending balance of accumulated other comprehensive income (loss) | $ | (886) | $ | (987) | $ | (886) | $ | (987) |
June 30, 2023 | December 31, 2022 | September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Date Issued | Date Due | Principal Amounts | Consolidated Balance Sheet Amount | Fair Value | Consolidated Balance Sheet Amount | Fair Value | (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 | 1.69% Long-term Note | 12/17/2019 | 12/17/2028 | 300 | $ | — | $ | — | $ | 300 | $ | 242 | 1.69% Long-term Note | 12/17/2019 | 12/17/2028 | $ | 300 | $ | — | $ | — | $ | 300 | $ | 242 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1.00% Long-term Note | 1.00% Long-term Note | 8/5/2021 | 8/5/2030 | 200 | — | — | 200 | 151 | 1.00% Long-term Note | 8/5/2021 | 8/5/2030 | 200 | — | — | 200 | 151 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3.11% Long-term Note | 3.11% Long-term Note | 6/14/2022 | 6/14/2052 | 215 | — | — | 215 | 171 | 3.11% Long-term Note | 6/14/2022 | 6/14/2052 | 215 | — | — | 215 | 171 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4.34%Long-term Note | 4.34%Long-term Note | 12/12/2022 | 12/12/2052 | 125 | — | — | 125 | 125 | 4.34%Long-term Note | 12/12/2022 | 12/12/2052 | 125 | — | — | 125 | 125 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
840 | $ | — | $ | — | $ | 840 | $ | 689 | $ | 840 | $ | — | $ | — | $ | 840 | $ | 689 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Interest Received | Receivable Dates | 2023 | 2022 | 2023 | 2022 | (Dollars in millions) | Interest Received | Receivable Dates | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1.69% Long-term Note | 1.69% Long-term Note | annually | December 17 | $ | 1 | $ | 1 | $ | 2 | $ | 3 | 1.69% Long-term Note | annually | December 17 | $ | — | $ | 1 | $ | 2 | $ | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||
1.00% Long-term Note | 1.00% Long-term Note | annually | August 5 | — | 1 | 1 | 1 | 1.00% Long-term Note | annually | August 5 | — | 1 | 1 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3.11% Long-term Note | 3.11% Long-term Note | annually | June 14 | 1 | — | 3 | — | 3.11% Long-term Note | annually | June 14 | — | 2 | 3 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4.34% Long-term Note | 4.34% Long-term Note | annually | December 12 | 1 | — | 2 | — | 4.34% Long-term Note | annually | December 12 | — | — | 2 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 3 | $ | 2 | $ | 7 | $ | 4 | $ | — | $ | 3 | $ | 7 | $ | 7 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||
Dividends received on preferred stock of affiliate | Dividends received on preferred stock of affiliate | $ | 8 | $ | 8 | $ | 16 | $ | 16 | Dividends received on preferred stock of affiliate | $ | 8 | $ | 8 | $ | 23 | $ | 23 |
(Dollars in millions) | (Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Coverage Period | Coverage Period | Ceding Company | Percent Ceded | Assuming Company | Type of Business | Single Occurrence Limit | Aggregate Limit | Coverage Period | Ceding Company | Percent Ceded | Assuming Company | Type of Business | Single Occurrence Limit | Aggregate Limit | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
01/01/2010-12/31/2010 | 01/01/2010-12/31/2010 | Everest Re | 44.0 | % | Bermuda Re | property / casualty business | 150 | 325 | 01/01/2010-12/31/2010 | Everest Re | 44.0 | % | Bermuda Re | property / casualty business | 150 | 325 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
01/01/2011-12/31/2011 | 01/01/2011-12/31/2011 | Everest Re | 50.0 | % | Bermuda Re | property / casualty business | 150 | 300 | 01/01/2011-12/31/2011 | Everest Re | 50.0 | % | Bermuda Re | property / casualty business | 150 | 300 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
01/01/2012-12/31/2014 | 01/01/2012-12/31/2014 | Everest Re | 50.0 | % | Bermuda Re | property / casualty business | 100 | 200 | 01/01/2012-12/31/2014 | Everest Re | 50.0 | % | Bermuda Re | property / casualty business | 100 | 200 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
01/01/2015-12/31/2016 | 01/01/2015-12/31/2016 | Everest Re | 50.0 | % | Bermuda Re | property / casualty business | 163 | 325 | 01/01/2015-12/31/2016 | Everest Re | 50.0 | % | Bermuda Re | property / casualty business | 163 | 325 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
01/01/2017-12/31/2017 | 01/01/2017-12/31/2017 | Everest Re | 60.0 | % | Bermuda Re | property / casualty business | 219 | 438 | 01/01/2017-12/31/2017 | Everest Re | 60.0 | % | Bermuda Re | property / casualty business | 219 | 438 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
01/01/2010-12/31/2010 | 01/01/2010-12/31/2010 | Everest Re- Canadian Branch | 60.0 | % | Bermuda Re | property business | 350 | (1) | — | 01/01/2010-12/31/2010 | Everest Re- Canadian Branch | 60.0 | % | Bermuda Re | property business | 350 | (1) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
01/01/2011-12/31/2011 | 01/01/2011-12/31/2011 | Everest Re- Canadian Branch | 60.0 | % | Bermuda Re | property business | 350 | (1) | — | 01/01/2011-12/31/2011 | Everest Re- Canadian Branch | 60.0 | % | Bermuda Re | property business | 350 | (1) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
01/01/2012-12/31/2012 | 01/01/2012-12/31/2012 | Everest Re- Canadian Branch | 75.0 | % | Bermuda Re | property / casualty business | 206 | (1) | 413 | (1) | 01/01/2012-12/31/2012 | Everest Re- Canadian Branch | 75.0 | % | Bermuda Re | property / casualty business | 206 | (1) | 413 | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
01/01/2013-12/31/2013 | 01/01/2013-12/31/2013 | Everest Re- Canadian Branch | 75.0 | % | Bermuda Re | property / casualty business | 150 | (1) | 413 | (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 | 01/01/2014-12/31/2017 | Everest Re- Canadian Branch | 75.0 | % | Bermuda Re | property / casualty business | 263 | (1) | 413 | (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 | 01/01/2012-12/31/2017 | Everest Canada | 80.0 | % | Everest Re- Canadian Branch | property business | — | — | 01/01/2012-12/31/2017 | Everest Canada | 80.0 | % | Everest Re- Canadian Branch | property business | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
01/01/2020 | Everest International Assurance | 100.0 | % | Bermuda Re | life business | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
01/01/2018 | 01/01/2018 | Everest International Assurance | 100.0 | % | Bermuda Re | life business | — | — |
(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 |
Bermuda Re | Bermuda Re | Three Months Ended June 30, | Six Months Ended June 30, | Bermuda Re | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
Ceded written premiums | Ceded written premiums | $ | 107 | $ | 91 | $ | 214 | $ | 184 | Ceded written premiums | $ | 107 | $ | 95 | $ | 321 | $ | 279 | ||||||||||||||||||||||||||||||||||
Ceded earned premiums | Ceded earned premiums | 107 | 91 | 213 | 184 | Ceded earned premiums | 107 | 95 | 321 | 279 | ||||||||||||||||||||||||||||||||||||||||||
Ceded losses and LAE | Ceded losses and LAE | (5) | 3 | (9) | 1 | Ceded losses and LAE | (40) | (2) | (49) | (1) | ||||||||||||||||||||||||||||||||||||||||||
Assumed written premiums | Assumed written premiums | 4 | 1 | 4 | 3 | Assumed written premiums | 1 | — | 5 | 3 | ||||||||||||||||||||||||||||||||||||||||||
Assumed earned premiums | Assumed earned premiums | 3 | 1 | 3 | 5 | Assumed earned premiums | 1 | — | 4 | 5 | ||||||||||||||||||||||||||||||||||||||||||
Assumed losses and LAE | Assumed losses and LAE | — | — | — | — | Assumed losses and LAE | — | — | — | — |
Ireland Re | Ireland Re | Three Months Ended June 30, | Six Months Ended June 30, | Ireland Re | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
Assumed written premiums | Assumed written premiums | $ | 3 | $ | 2 | $ | 6 | $ | 4 | Assumed written premiums | $ | 3 | $ | 2 | $ | 9 | $ | 6 | ||||||||||||||||||||||||||||||||||
Assumed earned premiums | Assumed earned premiums | 3 | 2 | 6 | 5 | Assumed earned premiums | 3 | 2 | 9 | 6 | ||||||||||||||||||||||||||||||||||||||||||
Assumed losses and LAE | Assumed losses and LAE | 1 | — | 1 | 2 | Assumed losses and LAE | 1 | (4) | 2 | (2) |
Ireland Insurance | Ireland Insurance | Three Months Ended June 30, | Six Months Ended June 30, | Ireland Insurance | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
Assumed written premiums | Assumed written premiums | $ | 11 | $ | 2 | $ | 12 | $ | 4 | Assumed written premiums | $ | 1 | $ | 3 | $ | 13 | $ | 7 | ||||||||||||||||||||||||||||||||||
Assumed earned premiums | Assumed earned premiums | 8 | 2 | 10 | 4 | Assumed earned premiums | 4 | 2 | 14 | 6 | ||||||||||||||||||||||||||||||||||||||||||
Assumed losses and LAE | Assumed losses and LAE | 2 | (5) | 4 | 2 | Assumed losses and LAE | 1 | 1 | 4 | 3 |
Mt. Logan Re Segregated Accounts | Mt. Logan Re Segregated Accounts | Three Months Ended June 30, | Six Months Ended June 30, | Mt. Logan Re Segregated Accounts | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
Ceded written premiums | Ceded written premiums | $ | 40 | $ | 22 | $ | 82 | $ | 62 | Ceded written premiums | $ | 76 | $ | 60 | $ | 158 | $ | 122 | ||||||||||||||||||||||||||||||||||
Ceded earned premiums | Ceded earned premiums | 44 | 29 | 82 | 72 | Ceded earned premiums | 65 | 51 | 147 | 122 | ||||||||||||||||||||||||||||||||||||||||||
Ceded losses and LAE | Ceded losses and LAE | 19 | 23 | 32 | 60 | Ceded losses and LAE | 17 | 82 | 49 | 142 |
Three Months Ended June 30, | Percentage Increase/ (Decrease) | Six Months Ended June 30, | Percentage Increase/ (Decrease) | Three Months Ended September 30, | Percentage Increase/ (Decrease) | Nine Months Ended September 30, | Percentage Increase/ (Decrease) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross written premiums | Gross written premiums | $ | 2,915 | $ | 2,437 | 19.6 | % | $ | 5,411 | $ | 4,642 | 16.6 | % | Gross written premiums | $ | 2,869 | $ | 2,585 | 11.0 | % | $ | 8,280 | $ | 7,227 | 14.6 | % | ||||||||||||||||||||||||||||||||||||||||||||
Net written premiums | Net written premiums | 2,396 | 1,995 | 20.1 | % | 4,459 | 3,791 | 17.6 | % | Net written premiums | 2,350 | 2,228 | 5.5 | % | 6,809 | 6,019 | 13.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUES: | REVENUES: | REVENUES: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premiums earned | Premiums earned | $ | 2,131 | $ | 1,954 | 9.0 | % | $ | 4,200 | $ | 3,783 | 11.0 | % | Premiums earned | $ | 2,139 | $ | 2,104 | 1.7 | % | $ | 6,339 | $ | 5,887 | 7.7 | % | ||||||||||||||||||||||||||||||||||||||||||||
Net investment income | Net investment income | 242 | 176 | 37.3 | % | 432 | 333 | 30.0 | % | Net investment income | 278 | 124 | NM | 711 | 457 | 55.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net gains (losses) on investments | Net gains (losses) on investments | (22) | (378) | -94.2 | % | — | (605) | NM | Net gains (losses) on investments | (59) | (237) | (75.1) | % | (59) | (842) | (93.0) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income (expense) | Other income (expense) | (10) | — | NM | (15) | (9) | 65.9 | % | Other income (expense) | 2 | 7 | (63.2) | % | (12) | (2) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | Total revenues | 2,341 | 1,753 | 33.5 | % | 4,618 | 3,502 | 31.9 | % | Total revenues | 2,361 | 1,998 | 18.2 | % | 6,979 | 5,500 | 26.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
CLAIMS AND EXPENSES: | CLAIMS AND EXPENSES: | CLAIMS AND EXPENSES: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incurred losses and loss adjustment expenses | Incurred losses and loss adjustment expenses | 1,325 | 1,304 | 1.6 | % | 2,719 | 2,530 | 7.5 | % | Incurred losses and loss adjustment expenses | 1,471 | 2,094 | (29.8) | % | 4,190 | 4,624 | (9.4) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commission, brokerage, taxes and fees | Commission, brokerage, taxes and fees | 433 | 409 | 5.9 | % | 869 | 793 | 9.6 | % | Commission, brokerage, taxes and fees | 454 | 423 | 7.3 | % | 1,323 | 1,216 | 8.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other underwriting expenses | Other underwriting expenses | 136 | 120 | 13.1 | % | 275 | 238 | 15.5 | % | Other underwriting expenses | 149 | 127 | 17.0 | % | 424 | 365 | 16.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate expenses | Corporate expenses | 4 | 6 | -36.3 | % | 10 | 12 | -12.6 | % | Corporate expenses | 8 | 5 | 54.4 | % | 18 | 17 | 7.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest, fees and bond issue cost amortization expense | Interest, fees and bond issue cost amortization expense | 33 | 24 | 35.0 | % | 65 | 48 | 34.0 | % | Interest, fees and bond issue cost amortization expense | 34 | 26 | 33.4 | % | 99 | 74 | 33.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total claims and expenses | Total claims and expenses | 1,930 | 1,863 | 3.6 | % | 3,938 | 3,621 | 8.8 | % | Total claims and expenses | 2,115 | 2,675 | (21.0) | % | 6,053 | 6,296 | (3.9) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME (LOSS) BEFORE TAXES | INCOME (LOSS) BEFORE TAXES | 411 | (110) | NM | 679 | (119) | NM | INCOME (LOSS) BEFORE TAXES | 246 | (677) | NM | 926 | (796) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | Income tax expense (benefit) | 81 | (25) | NM | 130 | (35) | NM | Income tax expense (benefit) | 25 | (135) | NM | 154 | (170) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET INCOME (LOSS) | NET INCOME (LOSS) | $ | 330 | $ | (86) | NM | $ | 549 | $ | (85) | NM | NET INCOME (LOSS) | $ | 222 | $ | (542) | NM | $ | 771 | $ | (626) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||
RATIOS: | RATIOS: | Point Change | Point Change | RATIOS: | Point Change | Point Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss ratio | Loss ratio | 62.2 | % | 66.7 | % | (4.6) | 64.7 | % | 66.9 | % | (2.1) | Loss ratio | 68.8 | % | 99.6 | % | (30.8) | 66.1 | % | 78.6 | % | (12.5) | ||||||||||||||||||||||||||||||||||||||||||||||||
Commission and brokerage ratio | Commission and brokerage ratio | 20.3 | % | 20.9 | % | (0.6) | 20.7 | % | 21.0 | % | (0.3) | Commission and brokerage ratio | 21.2 | % | 20.1 | % | 1.1 | 20.9 | % | 20.7 | % | 0.2 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other underwriting expense ratio | Other underwriting expense ratio | 6.4 | % | 6.2 | % | 0.2 | 6.5 | % | 6.3 | % | 0.3 | Other underwriting expense ratio | 7.0 | % | 6.1 | % | 0.9 | 6.7 | % | 6.2 | % | 0.5 | ||||||||||||||||||||||||||||||||||||||||||||||||
Combined ratio | Combined ratio | 88.9 | % | 93.8 | % | (4.9) | 92.0 | % | 94.1 | % | (2.1) | Combined ratio | 96.9 | % | 125.7 | % | (28.8) | 93.7 | % | 105.4 | % | (11.7) |
At June 30, | At December 31, | Percentage Increase/ (Decrease) | At September 30, | At December 31, | Percentage Increase/ (Decrease) | |||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | (Dollars in millions) | 2023 | 2022 | ||||||||||||||||||||||||||||
Balance sheet data: | Balance sheet data: | Balance sheet data: | ||||||||||||||||||||||||||||||||
Total investments and cash | Total investments and cash | $ | 21,056 | $ | 19,195 | 9.7 | % | Total investments and cash | $ | 21,841 | $ | 19,195 | 13.8 | % | ||||||||||||||||||||
Total assets | Total assets | 29,494 | 27,957 | 5.5 | % | Total assets | 30,434 | 27,957 | 8.9 | % | ||||||||||||||||||||||||
Loss and loss adjustment expense reserves | Loss and loss adjustment expense reserves | 15,512 | 14,977 | 3.6 | % | Loss and loss adjustment expense reserves | 15,669 | 14,977 | 4.6 | % | ||||||||||||||||||||||||
Total debt | Total debt | 3,085 | 3,084 | — | % | Total debt | 3,085 | 3,084 | — | % | ||||||||||||||||||||||||
Total liabilities | Total liabilities | 23,204 | 22,303 | 4.0 | % | Total liabilities | 24,047 | 22,303 | 7.8 | % | ||||||||||||||||||||||||
Stockholder's equity | Stockholder's equity | 6,290 | 5,654 | 11.2 | % | Stockholder's equity | 6,388 | 5,654 | 13.0 | % |
Three Months Ended June 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Current Year | Ratio %/ Pt Change | Prior Years | Ratio %/ Pt Change | Total Incurred | Ratio %/ Pt Change | (Dollars in millions) | Current Year | Ratio %/ Pt Change | Prior Years | Ratio %/ Pt Change | Total Incurred | Ratio %/ Pt Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2023 | 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Attritional | Attritional | $ | 1,297 | 60.9 | % | $ | 1 | 0.1 | % | $ | 1,299 | 61.0 | % | Attritional | $ | 1,313 | 61.4 | % | $ | 38 | 1.8 | % | $ | 1,350 | 63.1 | % | ||||||||||||||||||||||||||||||||||||||||||||
Catastrophes | Catastrophes | 19 | 0.9 | % | 7 | 0.3 | % | 26 | 1.2 | % | Catastrophes | 127 | 5.9 | % | (7) | (0.3) | % | 120 | 5.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 1,316 | 61.8 | % | $ | 8 | 0.4 | % | $ | 1,325 | 62.2 | % | Total | $ | 1,440 | 67.3 | % | $ | 31 | 1.5 | % | $ | 1,471 | 68.8 | % | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2022 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Attritional | Attritional | $ | 1,237 | 63.3 | % | $ | — | — | % | $ | 1,237 | 63.3 | % | Attritional | $ | 1,260 | 59.9 | % | $ | 7 | 0.3 | % | $ | 1,267 | 60.2 | % | ||||||||||||||||||||||||||||||||||||||||||||
Catastrophes | Catastrophes | 65 | 3.3 | % | 2 | 0.1 | % | 67 | 3.4 | % | Catastrophes | 826 | 39.2 | % | 1 | 0.1 | % | 827 | 39.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 1,302 | 66.6 | % | $ | 2 | 0.1 | % | $ | 1,304 | 66.7 | % | Total | $ | 2,086 | 99.1 | % | $ | 8 | 0.4 | % | $ | 2,094 | 99.6 | % | ||||||||||||||||||||||||||||||||||||||||||||
Variance 2023/2022 | Variance 2023/2022 | Variance 2023/2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Attritional | Attritional | $ | 61 | (2.4) | pts | $ | 1 | 0.1 | pts | $ | 62 | (2.3) | pts | Attritional | $ | 52 | 1.5 | pts | $ | 31 | 1.4 | pts | $ | 83 | 2.9 | pts | ||||||||||||||||||||||||||||||||||||||||||||
Catastrophes | Catastrophes | (46) | (2.4) | pts | 5 | 0.2 | pts | (41) | (2.2) | pts | Catastrophes | (699) | (33.3) | pts | (8) | (0.4) | pts | (707) | (33.7) | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 15 | (4.8) | pts | $ | 6 | 0.3 | pts | $ | 21 | (4.6) | pts | Total | $ | (646) | (31.8) | pts | $ | 23 | 1.0 | pts | $ | (623) | (30.8) | pts |
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Current Year | Ratio %/ Pt Change | Prior Years | Ratio %/ Pt Change | Total Incurred | Ratio %/ Pt Change | (Dollars in millions) | Current Year | Ratio %/ Pt Change | Prior Years | Ratio %/ Pt Change | Total Incurred | Ratio %/ Pt Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2023 | 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Attritional | Attritional | $ | 2,598 | 61.9 | % | $ | — | — | % | $ | 2,598 | 61.9 | % | Attritional | $ | 3,911 | 61.7 | % | $ | 37 | 0.6 | % | $ | 3,948 | 62.3 | % | ||||||||||||||||||||||||||||||||||||||||||||
Catastrophes | Catastrophes | 122 | 2.9 | % | — | — | % | 121 | 2.9 | % | Catastrophes | 249 | 3.9 | % | (7) | (0.1) | % | 242 | 3.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 2,720 | 64.8 | % | $ | (1) | — | % | $ | 2,719 | 64.7 | % | Total | $ | 4,159 | 65.6 | % | $ | 31 | 0.5 | % | $ | 4,190 | 66.1 | % | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2022 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Attritional | Attritional | $ | 2,375 | 62.8 | % | $ | — | — | % | $ | 2,375 | 62.8 | % | Attritional | $ | 3,636 | 61.8 | % | $ | 7 | 0.1 | % | $ | 3,643 | 61.9 | % | ||||||||||||||||||||||||||||||||||||||||||||
Catastrophes | Catastrophes | 145 | 3.8 | % | 9 | 0.2 | % | 155 | 4.1 | % | Catastrophes | 971 | 16.5 | % | 10 | 0.2 | % | 981 | 16.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 2,521 | 66.6 | % | $ | 9 | 0.2 | % | $ | 2,530 | 66.9 | % | Total | $ | 4,606 | 78.3 | % | $ | 18 | 0.3 | % | $ | 4,624 | 78.6 | % | ||||||||||||||||||||||||||||||||||||||||||||
Variance 2023/2022 | Variance 2023/2022 | Variance 2023/2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Attritional | Attritional | $ | 223 | (0.9) | pts | $ | — | — | pts | 222 | (0.9) | pts | Attritional | $ | 275 | (0.1) | pts | $ | 30 | 0.5 | pts | 305 | 0.4 | pts | ||||||||||||||||||||||||||||||||||||||||||||||
Catastrophes | Catastrophes | (24) | (1.0) | pts | (9) | (0.2) | pts | (33) | (1.2) | pts | Catastrophes | (723) | (12.6) | pts | (17) | (0.3) | pts | (740) | (12.9) | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 199 | (1.9) | pts | $ | (10) | (0.3) | pts | $ | 189 | (2.1) | pts | Total | $ | (447) | (12.6) | pts | $ | 13 | 0.2 | pts | $ | (434) | (12.5) | pts |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | (Dollars in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||
Fixed maturities | Fixed maturities | $ | 199 | $ | 116 | $ | 374 | $ | 210 | Fixed maturities | $ | 214 | $ | 129 | $ | 587 | $ | 339 | ||||||||||||||||||||||||||||
Equity securities | Equity securities | 1 | 5 | 2 | 9 | Equity securities | 1 | 7 | 3 | 15 | ||||||||||||||||||||||||||||||||||||
Short-term investments and cash | Short-term investments and cash | 16 | 1 | 27 | 1 | Short-term investments and cash | 24 | 4 | 51 | 4 | ||||||||||||||||||||||||||||||||||||
Other invested assets | Other invested assets | Other invested assets | ||||||||||||||||||||||||||||||||||||||||||||
Limited partnerships | Limited partnerships | 22 | 45 | (1) | 89 | Limited partnerships | 31 | (25) | 30 | 63 | ||||||||||||||||||||||||||||||||||||
Dividends from preferred shares of affiliate | Dividends from preferred shares of affiliate | 8 | 8 | 16 | 16 | Dividends from preferred shares of affiliate | 8 | 8 | 23 | 23 | ||||||||||||||||||||||||||||||||||||
Other | Other | 6 | 14 | 27 | 26 | Other | 15 | 11 | 42 | 37 | ||||||||||||||||||||||||||||||||||||
Gross investment income before adjustments | Gross investment income before adjustments | 252 | 188 | 444 | 350 | Gross investment income before adjustments | 291 | 132 | 736 | 482 | ||||||||||||||||||||||||||||||||||||
Funds held interest income (expense) | Funds held interest income (expense) | (1) | 1 | 1 | 3 | Funds held interest income (expense) | 1 | 1 | 3 | 5 | ||||||||||||||||||||||||||||||||||||
Interest income from Group | Interest income from Group | 3 | 2 | 7 | 4 | Interest income from Group | — | 3 | 7 | 7 | ||||||||||||||||||||||||||||||||||||
Gross investment income | Gross investment income | 253 | 190 | 453 | 357 | Gross investment income | 292 | 137 | 745 | 494 | ||||||||||||||||||||||||||||||||||||
Investment expenses | Investment expenses | (11) | (14) | (21) | (24) | Investment expenses | 14 | 13 | 35 | 37 | ||||||||||||||||||||||||||||||||||||
Net investment income | Net investment income | $ | 242 | $ | 176 | $ | 432 | $ | 333 | Net investment income | $ | 278 | $ | 124 | $ | 711 | $ | 457 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||
Annualized pre-tax yield on average cash and invested assets | Annualized pre-tax yield on average cash and invested assets | 4.5 | % | 3.6 | % | 4.1 | % | 3.5 | % | Annualized pre-tax yield on average cash and invested assets | 4.9 | % | 2.5 | % | 4.4 | % | 3.1 | % | ||||||||||||||||||||||||||||
Annualized after-tax yield on average cash and invested assets | Annualized after-tax yield on average cash and invested assets | 3.6 | % | 2.9 | % | 3.3 | % | 2.8 | % | Annualized after-tax yield on average cash and invested assets | 4.0 | % | 2.0 | % | 3.5 | % | 2.5 | % |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | Variance | 2023 | 2022 | Variance | (Dollars in millions) | 2023 | 2022 | Variance | 2023 | 2022 | Variance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized gains (losses) from dispositions: | Realized gains (losses) from dispositions: | Realized gains (losses) from dispositions: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities - available for sale | Fixed maturity securities - available for sale | Fixed maturity securities - available for sale | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains | Gains | $ | 1 | $ | 3 | $ | (2) | $ | 4 | $ | 6 | (3) | Gains | $ | 1 | $ | 1 | $ | — | $ | 4 | $ | 7 | (2) | ||||||||||||||||||||||||||||||||||||||||||||||
Losses | Losses | (8) | (13) | 5 | (12) | (21) | 9 | Losses | (13) | (46) | 32 | (25) | (67) | 41 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | (7) | (10) | 2 | (9) | (15) | 6 | Total | (12) | (45) | 33 | (21) | (60) | 39 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | Equity securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains | Gains | — | 4 | (4) | 7 | 8 | (1) | Gains | 2 | 59 | (58) | 8 | 67 | (59) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Losses | Losses | — | (34) | 34 | — | (46) | 46 | Losses | — | (2) | 2 | — | (48) | 48 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | — | (30) | 30 | 7 | (38) | 45 | Total | 1 | 57 | (56) | 8 | 19 | (11) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Invested Assets | Other Invested Assets | Other Invested Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains | Gains | — | 3 | (3) | — | 8 | (8) | Gains | — | 7 | (7) | — | 15 | (15) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Losses | Losses | — | (3) | 3 | — | (3) | 3 | Losses | — | (1) | 1 | — | (4) | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | — | 1 | (1) | — | 5 | (5) | Total | — | 6 | (6) | — | 10 | (10) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Investments | Short-Term Investments | Short-Term Investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains | Gains | 1 | — | 1 | 1 | — | 1 | Gains | — | 1 | (1) | 1 | 1 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Losses | Losses | — | — | — | — | — | — | Losses | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | — | — | — | — | — | 1 | Total | — | 1 | (1) | — | 1 | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total net realized gains (losses) from dispositions | Total net realized gains (losses) from dispositions | Total net realized gains (losses) from dispositions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains | Gains | 1 | 11 | (9) | 11 | 22 | (11) | Gains | 2 | 68 | (66) | 13 | 90 | (76) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Losses | Losses | (8) | (50) | 41 | (12) | (70) | 58 | Losses | (13) | (49) | 36 | (26) | (119) | 94 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | (7) | (39) | 32 | (1) | (49) | 47 | Total | (11) | 20 | (30) | (12) | (29) | 17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | Allowance for credit losses | — | 2 | (2) | (10) | — | (10) | Allowance for credit losses | (1) | (12) | 10 | (12) | (12) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains (losses) from fair value adjustments | Gains (losses) from fair value adjustments | Gains (losses) from fair value adjustments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | 8 | (186) | 194 | 11 | (317) | 328 | Equity securities | (13) | (134) | 121 | (2) | (451) | 449 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other invested assets | Other invested assets | (23) | (155) | 132 | 1 | (239) | 241 | Other invested assets | (34) | (111) | 78 | (32) | (350) | 318 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | (15) | (341) | 326 | 12 | (556) | 568 | Total | (47) | (245) | 199 | (34) | (801) | 767 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total net gains (losses) on investments | Total net gains (losses) on investments | $ | (22) | $ | (378) | $ | 356 | $ | — | $ | (605) | $ | 605 | Total net gains (losses) on investments | $ | (59) | $ | (237) | $ | 178 | $ | (59) | $ | (842) | $ | 784 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | Variance | % Change | 2023 | 2022 | Variance | % Change | (Dollars in millions) | 2023 | 2022 | Variance | % Change | 2023 | 2022 | Variance | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross written premiums | Gross written premiums | $ | 1,791 | $ | 1,394 | 397 | 28.5 | % | $ | 3,434 | $ | 2,774 | $ | 660 | 23.8 | % | Gross written premiums | $ | 1,985 | $ | 1,681 | 305 | 18.1 | % | $ | 5,420 | $ | 4,454 | $ | 965 | 21.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net written premiums | Net written premiums | 1,580 | 1,245 | 335 | 26.9 | % | 2,953 | 2,430 | 523 | 21.5 | % | Net written premiums | 1,703 | 1,506 | 198 | 13.1 | % | 4,656 | 3,936 | 720 | 18.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premiums earned | Premiums earned | $ | 1,417 | $ | 1,295 | $ | 122 | 9.4 | % | $ | 2,784 | $ | 2,504 | $ | 279 | 11.2 | % | Premiums earned | $ | 1,437 | $ | 1,398 | $ | 39 | 2.8 | % | $ | 4,220 | $ | 3,902 | $ | 318 | 8.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incurred losses and LAE | Incurred losses and LAE | 864 | 875 | (11) | (1.3) | % | 1,794 | 1,696 | 98 | 5.8 | % | Incurred losses and LAE | 1,010 | 1,531 | (520) | (34.0) | % | 2,804 | 3,227 | (423) | (13.1) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commission and brokerage | Commission and brokerage | 363 | 332 | 31 | 9.4 | % | 724 | 647 | 77 | 11.9 | % | Commission and brokerage | 378 | 337 | 40 | 11.9 | % | 1,102 | 985 | 117 | 11.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other underwriting expenses | Other underwriting expenses | 36 | 32 | 4 | 11.7 | % | 75 | 63 | 12 | 18.2 | % | Other underwriting expenses | 46 | 33 | 13 | 38.4 | % | 121 | 97 | 24 | 25.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underwriting gain (loss) | Underwriting gain (loss) | $ | 153 | $ | 55 | $ | 98 | NM | $ | 191 | $ | 98 | $ | 93 | 95.7 | % | Underwriting gain (loss) | $ | 3 | $ | (504) | $ | 506 | NM | $ | 194 | $ | (406) | $ | 600 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Point Chg | Point Chg | Point Chg | Point Chg | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss ratio | Loss ratio | 61.0 | % | 67.6 | % | (6.6) | 64.4 | % | 67.7 | % | (3.3) | Loss ratio | 70.3 | % | 109.5 | % | (39.2) | 66.4 | % | 82.7 | % | (16.3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commission and brokerage ratio | Commission and brokerage ratio | 25.6 | % | 25.6 | % | — | 26.0 | % | 25.8 | % | 0.2 | Commission and brokerage ratio | 26.3 | % | 24.1 | % | 2.1 | 26.1 | % | 25.2 | % | 0.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other underwriting expense ratio | Other underwriting expense ratio | 2.6 | % | 2.5 | % | 0.1 | 2.7 | % | 2.5 | % | 0.2 | Other underwriting expense ratio | 3.2 | % | 2.4 | % | 0.8 | 2.9 | % | 2.5 | % | 0.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Combined ratio | Combined ratio | 89.2 | % | 95.7 | % | (6.6) | 93.1 | % | 96.1 | % | (3.0) | Combined ratio | 99.8 | % | 136.0 | % | (36.2) | 95.4 | % | 110.4 | % | (15.0) |
Three Months Ended June 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Current Year | Ratio %/ Pt Change | Prior Years | Ratio %/ Pt Change | Total Incurred | Ratio %/ Pt Change | (Dollars in millions) | Current Year | Ratio %/ Pt Change | Prior Years | Ratio %/ Pt Change | Total Incurred | Ratio %/ Pt Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2023 | 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Attritional | Attritional | $ | 836 | 59.0 | % | $ | 1 | 0.1 | % | 838 | 59.1 | % | Attritional | $ | 862 | 60.0 | % | $ | 38 | 2.6 | % | 900 | 62.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Catastrophes | Catastrophes | 19 | 1.4 | % | 7 | 0.5 | % | 27 | 1.9 | % | Catastrophes | 117 | 8.2 | % | (6) | (0.4) | % | 111 | 7.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Segment | Total Segment | $ | 855 | 60.4 | % | $ | 9 | 0.6 | % | $ | 864 | 61.0 | % | Total Segment | $ | 979 | 68.1 | % | $ | 32 | 2.2 | % | $ | 1,010 | 70.3 | % | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2022 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Attritional | Attritional | $ | 813 | 62.8 | % | $ | — | 0.0 | % | 813 | 62.8 | % | Attritional | $ | 800 | 57.2 | % | $ | 7 | 0.5 | % | 807 | 57.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Catastrophes | Catastrophes | 60 | 4.6 | % | 3 | 0.2 | % | 63 | 4.8 | % | Catastrophes | 722 | 51.7 | % | 2 | 0.1 | % | 724 | 51.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Segment | Total Segment | $ | 873 | 67.4 | % | $ | 3 | 0.2 | % | $ | 875 | 67.6 | % | Total Segment | $ | 1,522 | 108.9 | % | $ | 9 | 0.6 | % | $ | 1,531 | 109.5 | % | ||||||||||||||||||||||||||||||||||||||||||||
Variance 2023/2022 | Variance 2023/2022 | Variance 2023/2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Attritional | Attritional | $ | 24 | (3.7) | pts | $ | 1 | 0.1 | pts | $ | 25 | (3.6) | pts | Attritional | $ | 62 | 2.8 | pts | $ | 31 | 2.1 | pts | $ | 93 | 4.9 | pts | ||||||||||||||||||||||||||||||||||||||||||||
Catastrophes | Catastrophes | (41) | (3.3) | pts | 5 | 0.3 | pts | (36) | (3.0) | pts | Catastrophes | (605) | (43.5) | pts | (8) | (0.6) | pts | (613) | (44.1) | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Segment | Total Segment | $ | (17) | (7.0) | pts | $ | 6 | 0.4 | pts | $ | (11) | (6.6) | pts | Total Segment | $ | (543) | (40.7) | pts | $ | 22 | 1.5 | pts | $ | (520) | (39.2) | pts |
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Current Year | Ratio %/ Pt Change | Prior Years | Ratio %/ Pt Change | Total Incurred | Ratio %/ Pt Change | (Dollars in millions) | Current Year | Ratio %/ Pt Change | Prior Years | Ratio %/ Pt Change | Total Incurred | Ratio %/ Pt Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2023 | 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Attritional | Attritional | $ | 1,671 | 60.0 | % | $ | 2 | 0.1 | % | 1,673 | 60.1 | % | Attritional | $ | 2,532 | 60.0 | % | $ | 40 | 0.9 | % | 2,572 | 60.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Catastrophes | Catastrophes | 120 | 4.3 | % | 1 | — | % | 121 | 4.3 | % | Catastrophes | 237 | 5.6 | % | (6) | (0.1) | % | 232 | 5.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Segment | Total Segment | $ | 1,791 | 64.3 | % | $ | 3 | 0.1 | % | $ | 1,794 | 64.4 | % | Total Segment | $ | 2,770 | 65.6 | % | $ | 34 | 0.8 | % | $ | 2,804 | 66.4 | % | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2022 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Attritional | Attritional | $ | 1,550 | 61.9 | % | $ | — | — | % | 1,551 | 61.9 | % | Attritional | $ | 2,350 | 60.2 | % | $ | 8 | 0.2 | % | 2,358 | 60.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Catastrophes | Catastrophes | 135 | 5.4 | % | 10 | 0.4 | % | 145 | 5.8 | % | Catastrophes | 857 | 22.0 | % | 11 | 0.3 | % | 868 | 22.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Segment | Total Segment | $ | 1,686 | 67.3 | % | $ | 10 | 0.4 | % | $ | 1,696 | 67.7 | % | Total Segment | $ | 3,207 | 82.2 | % | $ | 19 | 0.5 | % | $ | 3,227 | 82.7 | % | ||||||||||||||||||||||||||||||||||||||||||||
Variance 2023/2022 | Variance 2023/2022 | Variance 2023/2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Attritional | Attritional | $ | 120 | (1.9) | pts | $ | 2 | 0.1 | pts | $ | 122 | (1.8) | pts | Attritional | $ | 182 | (0.2) | pts | $ | 32 | 0.7 | pts | $ | 214 | 0.5 | pts | ||||||||||||||||||||||||||||||||||||||||||||
Catastrophes | Catastrophes | $ | (15) | (1.1) | pts | (9) | (0.4) | pts | (24) | (1.4) | pts | Catastrophes | $ | (620) | (16.4) | pts | (17) | (0.4) | pts | (636) | (16.8) | pts | ||||||||||||||||||||||||||||||||||||||||||||||||
Total Segment | Total Segment | $ | 105 | (3.0) | pts | $ | (7) | (0.3) | pts | $ | 98 | (3.3) | pts | Total Segment | $ | (437) | (16.6) | pts | $ | 15 | 0.3 | pts | $ | (423) | (16.3) | pts |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | 2023 | 2022 | Variance | % Change | 2023 | 2022 | Variance | % Change | (Dollars in millions) | 2023 | 2022 | Variance | % Change | 2023 | 2022 | Variance | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross written premiums | Gross written premiums | $ | 1,125 | $ | 1,043 | $ | 82 | 7.8 | % | $ | 1,977 | $ | 1,868 | $ | 109 | 5.8 | % | Gross written premiums | $ | 884 | $ | 905 | $ | (21) | (2.4) | % | $ | 2,860 | $ | 2,773 | $ | 87 | 3.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net written premiums | Net written premiums | 816 | 750 | 67 | 8.9 | % | 1,506 | 1,360 | 145 | 10.7 | % | Net written premiums | 647 | 722 | (75) | (10.4) | % | 2,153 | 2,083 | 70 | 3.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premiums earned | Premiums earned | $ | 714 | $ | 659 | $ | 55 | 8.3 | % | $ | 1,416 | $ | 1,279 | $ | 137 | 10.7 | % | Premiums earned | $ | 702 | $ | 706 | $ | (4) | (0.5) | % | $ | 2,118 | $ | 1,985 | $ | 134 | 6.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incurred losses and LAE | Incurred losses and LAE | 460 | 429 | 32 | 7.5 | % | 925 | 834 | 92 | 11.0 | % | Incurred losses and LAE | 460 | 564 | (104) | (18.4) | % | 1,386 | 1,398 | (12) | (0.9) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commission and brokerage | Commission and brokerage | 70 | 77 | (7) | (9.3) | % | 145 | 146 | (1) | (0.6) | % | Commission and brokerage | 76 | 85 | (9) | (11.1) | % | 221 | 231 | (10) | (4.5) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other underwriting expenses | Other underwriting expenses | 100 | 88 | 12 | 13.6 | % | 200 | 175 | 25 | 14.6 | % | Other underwriting expenses | 103 | 94 | 9 | 9.5 | % | 303 | 269 | 34 | 12.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underwriting gain (loss) | Underwriting gain (loss) | $ | 84 | $ | 66 | $ | 18 | 27.0 | % | $ | 145 | $ | 124 | $ | 21 | 16.9 | % | Underwriting gain (loss) | $ | 63 | $ | (37) | $ | 101 | NM | $ | 208 | $ | 87 | $ | 122 | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Point Chg | Point Chg | Point Chg | Point Chg | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss ratio | Loss ratio | 64.5% | 65.0% | (0.5) | 65.4% | 65.2% | 0.2 | Loss ratio | 65.5% | 79.9% | (14.3) | 65.4% | 70.4% | (5.0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commission and brokerage ratio | Commission and brokerage ratio | 9.7% | 11.6% | -1.9 | 10.3% | 11.4% | (1.2) | Commission and brokerage ratio | 10.8% | 12.1% | (1.3) | 10.4% | 11.7% | (1.2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other underwriting expense ratio | Other underwriting expense ratio | 14.0% | 13.3% | 0.7 | 14.1% | 13.7% | 0.5 | Other underwriting expense ratio | 14.7% | 13.3% | 1.3 | 14.3% | 13.5% | 0.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Combined ratio | Combined ratio | 88.2% | 90.0% | (1.7) | 89.7% | 90.3% | (0.5) | Combined ratio | 91.0% | 105.3% | (14.3) | 90.2% | 95.6% | (5.5) |
Three Months Ended June 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Current Year | Ratio %/ Pt Change | Prior Years | Ratio %/ Pt Change | Total Incurred | Ratio %/ Pt Change | (Dollars in millions) | Current Year | Ratio %/ Pt Change | Prior Years | Ratio %/ Pt Change | Total Incurred | Ratio %/ Pt Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2023 | 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Attritional | Attritional | $ | 461 | 64.6 | % | $ | — | — | % | 461 | 64.6 | % | Attritional | $ | 451 | 64.2 | % | $ | — | — | % | 451 | 64.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Catastrophes | Catastrophes | — | — | % | — | (0.1) | % | (1) | (0.1) | % | Catastrophes | 10 | 1.4 | % | — | (0.1) | % | 9 | 1.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Segment | Total Segment | $ | 461 | 64.6 | % | $ | — | (0.1) | % | $ | 460 | 64.5 | % | Total Segment | $ | 461 | 65.6 | % | $ | — | (0.1) | % | $ | 460 | 65.5 | % | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2022 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Attritional | Attritional | $ | 424 | 64.3 | % | $ | — | — | % | 424 | 64.3 | % | Attritional | $ | 461 | 65.3 | % | $ | — | — | % | 461 | 65.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Catastrophes | Catastrophes | 5 | 0.8 | % | — | — | % | 5 | 0.7 | % | Catastrophes | 104 | 14.7 | % | — | (0.1) | % | 104 | 14.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Segment | Total Segment | $ | 429 | 65.0 | % | $ | — | — | % | $ | 429 | 65.0 | % | Total Segment | $ | 565 | 80.0 | % | $ | — | (0.1) | % | $ | 564 | 79.9 | % | ||||||||||||||||||||||||||||||||||||||||||||
Variance 2023/2022 | Variance 2023/2022 | Variance 2023/2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Attritional | Attritional | $ | 37 | 0.3 | pts | $ | — | — | pts | $ | 37 | 0.3 | pts | Attritional | $ | (10) | (1.1) | pts | $ | — | — | pts | $ | (10) | (1.1) | pts | ||||||||||||||||||||||||||||||||||||||||||||
Catastrophes | Catastrophes | (5) | (0.8) | pts | — | — | pts | (6) | (0.8) | pts | Catastrophes | (94) | (13.3) | pts | — | — | pts | (95) | (13.3) | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Segment | Total Segment | $ | 32 | (0.5) | pts | $ | — | — | pts | $ | 32 | (0.5) | pts | Total Segment | $ | (104) | (14.4) | pts | $ | — | — | pts | $ | (103) | (14.3) | pts |
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | Current Year | Ratio %/ Pt Change | Prior Years | Ratio %/ Pt Change | Total Incurred | Ratio %/ Pt Change | (Dollars in millions) | Current Year | Ratio %/ Pt Change | Prior Years | Ratio %/ Pt Change | Total Incurred | Ratio %/ Pt Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2023 | 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Attritional | Attritional | $ | 927 | 65.5 | % | $ | (2) | (0.2) | % | 925 | 65.3 | % | Attritional | $ | 1,378 | 65.1 | % | $ | (2) | (0.1) | % | 1,376 | 65.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Catastrophes | Catastrophes | 1 | 0.1 | % | (1) | (0.1) | % | 1 | — | % | Catastrophes | 11 | 0.5 | % | (1) | (0.1) | % | 10 | 0.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Segment | Total Segment | $ | 929 | 65.6 | % | $ | (3) | (0.3) | % | $ | 925 | 65.4 | % | Total Segment | $ | 1,389 | 65.6 | % | $ | (4) | (0.2) | % | $ | 1,386 | 65.4 | % | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2022 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Attritional | Attritional | $ | 825 | 64.5 | % | $ | — | — | % | 824 | 64.5 | % | Attritional | $ | 1,285 | 64.8 | % | $ | — | — | % | 1,285 | 64.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Catastrophes | Catastrophes | 10 | 0.8 | % | (1) | — | % | 9 | 0.7 | % | Catastrophes | 114 | 5.7 | % | (1) | (0.1) | % | 113 | 5.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Segment | Total Segment | $ | 835 | 65.3 | % | $ | (1) | -0.1 | % | $ | 834 | 65.2 | % | Total Segment | $ | 1,399 | 70.5 | % | $ | (1) | (0.1) | % | $ | 1,398 | 70.4 | % | ||||||||||||||||||||||||||||||||||||||||||||
Variance 2023/2022 | Variance 2023/2022 | Variance 2023/2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Attritional | Attritional | $ | 103 | 1.0 | pts | $ | (2) | (0.1) | pts | 101 | 0.9 | pts | Attritional | $ | 93 | 0.3 | pts | $ | (2) | (0.1) | pts | 91 | 0.2 | pts | ||||||||||||||||||||||||||||||||||||||||||||||
Catastrophes | Catastrophes | (9) | (0.7) | pts | — | — | pts | (9) | (0.7) | pts | Catastrophes | (102) | (5.2) | pts | — | — | pts | (103) | (5.1) | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Segment | Total Segment | $ | 94 | 0.3 | pts | $ | (2) | (0.2) | pts | $ | 92 | 0.2 | pts | Total Segment | $ | (10) | (4.9) | pts | $ | (2) | (0.1) | pts | $ | (12) | (4.9) | pts |
Everest Re (1) | |||||||||||
At December 31, | |||||||||||
(Dollars in millions) | 2022 | 2021 | |||||||||
Regulatory targeted capital | $ | 3,353 | $ | 2,960 | |||||||
Actual capital | $ | 5,553 | $ | 5,717 |
Impact of Interest Rate Shift in Basis Points At June 30, 2023 | Impact of Interest Rate Shift in Basis Points At September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-200 | -100 | 0 | 100 | 200 | -200 | -100 | 0 | 100 | 200 | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Fair Value | Total Fair Value | $ | 16,791 | $ | 16,438 | $ | 16,084 | $ | 15,731 | $ | 15,378 | Total Fair Value | $ | 17,726 | $ | 17,301 | $ | 16,875 | $ | 16,450 | $ | 16,025 | ||||||||||||||||||||||||||||||||||||
Fair Value Change from Base (%) | Fair Value Change from Base (%) | 4.4 | % | 2.2 | % | — | % | (2.2) | % | (4.4) | % | Fair Value Change from Base (%) | 5.0 | % | 2.5 | % | — | % | (2.5) | % | (5.0) | % | ||||||||||||||||||||||||||||||||||||
Change in Unrealized Appreciation | Change in Unrealized Appreciation | Change in Unrealized Appreciation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
After-tax from Base ($) | After-tax from Base ($) | $ | 558 | $ | 279 | $ | — | $ | (279) | $ | (558) | After-tax from Base ($) | $ | 672 | $ | 336 | $ | — | $ | (336) | $ | (672) |
Impact of Percentage Change in Equity Fair Values At June 30, 2023 | Impact of Percentage Change in Equity Fair Values At September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | -20% | -10% | 0% | 10% | 20% | (Dollars in millions) | -20% | -10% | 0% | 10% | 20% | ||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of the Equity Portfolio | Fair Value of the Equity Portfolio | $ | 134 | $ | 150 | $ | 167 | $ | 184 | $ | 201 | Fair Value of the Equity Portfolio | $ | 63 | $ | 71 | $ | 79 | $ | 87 | $ | 95 | ||||||||||||||||||||||||||||||||||||
After-tax Change in Fair Value | After-tax Change in Fair Value | (26) | (13) | — | 13 | 26 | After-tax Change in Fair Value | (12) | (6) | — | 6 | 12 |
Exhibit Index: | ||||||||
Exhibit No. | Description | |||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
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 Labels Linkbase | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Everest Reinsurance Holdings, Inc. | |||||
(Registrant) | |||||
/S/ MARK KOCIANCIC | |||||
Mark Kociancic | |||||
Executive Vice President and | |||||
Chief Financial Officer | |||||
(Duly Authorized Officer and Principal Financial Officer) | |||||
Dated: |