COVER
COVER - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-14527 | |
Entity Registrant Name | EVEREST REINSURANCE HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 22-3263609 | |
Entity Address, Address Line One | 100 Everest Way | |
Entity Address, City or Town | Warren | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07059 | |
City Area Code | 908 | |
Local Phone Number | 604-3000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Shares, $0.01 par value | |
Entity Common Stock, Shares Outstanding | 1,000 | |
Entity Central Index Key | 0000914748 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
No Trading Symbol Flag | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
ASSETS: | ||
Fixed maturities - available for sale, at fair value (amortized cost: 2023, $15,141; 2022, $13,699, credit allowances: 2023, $(57); 2022, $(46)) | $ 14,202,000,000 | $ 12,671,000,000 |
Fixed maturities - held to maturity, at amortized cost (fair value: 2023, $771; 2022, $793, net of credit allowances: 2023, $(8); 2022, $(9)) | 788,000,000 | 811,000,000 |
Equity securities, at fair value | 167,000,000 | 194,000,000 |
Other invested assets | 2,853,000,000 | 2,754,000,000 |
Other invested assets, at fair value | 1,474,000,000 | 1,472,000,000 |
Short-term investments | 1,095,000,000 | 812,000,000 |
Cash | 478,000,000 | 481,000,000 |
Total investments and cash | 21,056,000,000 | 19,195,000,000 |
Accrued investment income | 187,000,000 | 150,000,000 |
Premiums receivable (net of credit allowances:2023, $(22); 2022, $(21)) | 2,084,000,000 | 1,721,000,000 |
Income tax asset, net | 201,000,000 | 288,000,000 |
Funds held by reinsureds | 295,000,000 | 303,000,000 |
Deferred acquisition costs | 530,000,000 | 499,000,000 |
Prepaid reinsurance premiums | 522,000,000 | 463,000,000 |
Other assets (net of credit allowances: 2023, $(7); 2022, $(5)) | 830,000,000 | 722,000,000 |
TOTAL ASSETS | 29,494,000,000 | 27,957,000,000 |
LIABILITIES: | ||
Reserve for losses and loss adjustment expenses | 15,512,000,000 | 14,977,000,000 |
Unearned premium reserve | 3,497,000,000 | 3,177,000,000 |
Funds held under reinsurance treaties | 55,000,000 | 43,000,000 |
Amounts due to reinsurers | 509,000,000 | 436,000,000 |
Losses in course of payment | 72,000,000 | 77,000,000 |
Senior notes | 2,348,000,000 | 2,347,000,000 |
Long-term notes | 218,000,000 | 218,000,000 |
Borrowings from FHLB | 519,000,000 | 519,000,000 |
Accrued interest on debt and borrowings | 19,000,000 | 19,000,000 |
Unsettled securities payable | 10,000,000 | 1,000,000 |
Other liabilities | 446,000,000 | 489,000,000 |
Total liabilities | 23,204,000,000 | 22,303,000,000 |
Commitments and Contingencies (Note 11) | ||
STOCKHOLDER'S EQUITY: | ||
Common stock, par value: $0.01; 3,000 shares authorized; 1,000 shares issued and outstanding (2023 and 2022) | 0 | 0 |
Additional paid-in capital | 1,102,000,000 | 1,102,000,000 |
Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) of $(202) at 2023 and $(225) at 2022 | (762,000,000) | (848,000,000) |
Retained earnings | 5,950,000,000 | 5,400,000,000 |
Total stockholder's equity | 6,290,000,000 | 5,654,000,000 |
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | 29,494,000,000 | 27,957,000,000 |
Affiliated Entity | ||
ASSETS: | ||
Notes receivable - affiliated | 0 | 840,000,000 |
Reinsurance recoverables - affiliated | 1,830,000,000 | 1,935,000,000 |
Nonrelated Party | ||
ASSETS: | ||
Reinsurance recoverables - affiliated | $ 1,960,000,000 | $ 1,841,000,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
ASSETS: | ||
Amortized Cost | $ 15,141 | $ 13,699 |
Allowance for credit loss | (57) | (46) |
Fixed maturities - held to maturity, at amortized cost, net of credit allowances, fair value | 771 | 793 |
Fixed maturities - held to maturity, at amortized cost, credit allowances | (8) | (9) |
Premium receivable, allowance for credit loss | (22) | (21) |
Reinsurance recoverables on paid losses, allowance | (21) | (21) |
Other assets, allowance for credit loss | $ (7) | $ (5) |
STOCKHOLDER'S EQUITY: | ||
Common stock, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, authorized (in shares) | 3,000 | 3,000 |
Common stock, shares issued (in shares) | 1,000 | 1,000 |
Common shares, outstanding (in shares) | 1,000 | 1,000 |
Accumulated other comprehensive income (loss), deferred income tax expense (benefit) | $ (202) | $ (225) |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
REVENUES: | ||||
Premiums earned | $ 2,131 | $ 1,954 | $ 4,200 | $ 3,783 |
Net investment income | 242 | 176 | 432 | 333 |
Total net gains (losses) on investments | (22) | (378) | 0 | (605) |
Other income (expense) | (10) | 0 | (15) | (9) |
Total revenues | 2,341 | 1,753 | 4,618 | 3,502 |
CLAIMS AND EXPENSES: | ||||
Incurred losses and loss adjustment expenses | 1,325 | 1,304 | 2,719 | 2,530 |
Commission, brokerage, taxes and fees | 433 | 409 | 869 | 793 |
Other underwriting expenses | 136 | 120 | 275 | 238 |
Corporate expenses | 4 | 6 | 10 | 12 |
Interest, fees and bond issue cost amortization expense | 33 | 24 | 65 | 48 |
Total claims and expenses | 1,930 | 1,863 | 3,938 | 3,621 |
INCOME (LOSS) BEFORE TAXES | 411 | (110) | 679 | (119) |
Income tax expense (benefit) | 81 | (25) | 130 | (35) |
NET INCOME (LOSS) | 330 | (86) | 549 | (85) |
Other comprehensive income (loss), net of tax: | ||||
Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period | (44) | (411) | 68 | (805) |
Less: reclassification adjustment for realized losses (gains) included in net income (loss) | 6 | 6 | 15 | 8 |
Total URA(D) on securities arising during the period | (38) | (405) | 83 | (797) |
Foreign currency translation adjustments | (4) | (10) | 2 | (12) |
Reclassification adjustment for amortization of net (gain) loss included in net income (loss) | 0 | 1 | 1 | 2 |
Total benefit plan net gain (loss) for the period | 0 | 1 | 1 | 2 |
Total other comprehensive income (loss), net of tax | (42) | (414) | 86 | (807) |
COMPREHENSIVE INCOME (LOSS) | $ 288 | $ (500) | $ 636 | $ (892) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER’S EQUITY - USD ($) $ in Millions | Total | COMMON STOCK (shares outstanding): | ADDITIONAL PAID-IN CAPITAL: | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), NET OF DEFERRED INCOME TAXES: | RETAINED EARNINGS: |
Beginning balance, shares at Dec. 31, 2021 | 1,000 | ||||
Beginning balance at Dec. 31, 2021 | $ 1,102 | $ 91 | $ 5,845 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net increase (decrease) during the period | $ (807) | (807) | |||
Net income (loss) | (85) | (85) | |||
Ending balance at Jun. 30, 2022 | 6,146 | 1,102 | (716) | 5,760 | |
Ending balance, shares at Jun. 30, 2022 | 1,000 | ||||
Beginning balance, shares at Mar. 31, 2022 | 1,000 | ||||
Beginning balance at Mar. 31, 2022 | 1,102 | (302) | 5,846 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net increase (decrease) during the period | (414) | (414) | |||
Net income (loss) | (86) | (86) | |||
Ending balance at Jun. 30, 2022 | $ 6,146 | 1,102 | (716) | 5,760 | |
Ending balance, shares at Jun. 30, 2022 | 1,000 | ||||
Beginning balance, shares at Dec. 31, 2022 | 1,000 | 1,000 | |||
Beginning balance at Dec. 31, 2022 | $ 5,654 | 1,102 | (848) | 5,400 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net increase (decrease) during the period | 86 | 86 | |||
Net income (loss) | 549 | 549 | |||
Ending balance at Jun. 30, 2023 | $ 6,290 | 1,102 | (762) | 5,950 | |
Ending balance, shares at Jun. 30, 2023 | 1,000 | 1,000 | |||
Beginning balance, shares at Mar. 31, 2023 | 1,000 | ||||
Beginning balance at Mar. 31, 2023 | 1,102 | (720) | 5,620 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net increase (decrease) during the period | $ (42) | (42) | |||
Net income (loss) | 330 | 330 | |||
Ending balance at Jun. 30, 2023 | $ 6,290 | $ 1,102 | $ (762) | $ 5,950 | |
Ending balance, shares at Jun. 30, 2023 | 1,000 | 1,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 549 | $ (85) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Decrease (increase) in premiums receivable | (363) | 10 |
Decrease (increase) in funds held by reinsureds, net | 20 | (6) |
Decrease (increase) in reinsurance recoverables | (4) | 105 |
Decrease (increase) in income taxes | 65 | (139) |
Decrease (increase) in prepaid reinsurance premiums | (57) | (44) |
Increase (decrease) in reserve for losses and loss adjustment expenses | 526 | 637 |
Increase (decrease) in unearned premiums | 319 | 51 |
Increase (decrease) in amounts due to reinsurers | 70 | 35 |
Increase (decrease) in losses in course of payment | (5) | (175) |
Change in equity adjustments in limited partnerships | (21) | (110) |
Distribution of limited partnership income | 23 | 49 |
Change in other assets and liabilities, net | (215) | (19) |
Non-cash compensation expense | 19 | 20 |
Amortization of bond premium (accrual of bond discount) | (11) | 15 |
Net (gains) losses on investments | 0 | 605 |
Net cash provided by (used in) operating activities | 914 | 948 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from fixed maturities matured/called/repaid - available for sale | 543 | 876 |
Proceeds from fixed maturities sold - available for sale | 109 | 511 |
Proceeds from fixed maturities matured/called/repaid - held to maturity | 43 | 0 |
Proceeds from equity securities sold | 46 | 425 |
Distributions from other invested assets | 60 | 99 |
Cost of fixed maturities acquired - available for sale | (2,100) | (2,465) |
Cost of fixed maturities acquired - held to maturity | (15) | (72) |
Cost of equity securities acquired | (1) | (272) |
Cost of other invested assets acquired | (161) | (153) |
Net change in short-term investments | (269) | 465 |
Net change in unsettled securities transactions | 13 | 29 |
Proceeds from repayment (cost of issuance) of notes receivable - affiliated | 840 | (215) |
Net cash provided by (used in) investing activities | (892) | (772) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Tax benefit from share-based compensation, net of expense | (19) | (20) |
Net cash provided by (used in) financing activities | (19) | (20) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (6) | (12) |
Net increase (decrease) in cash | (3) | 144 |
Cash, beginning of period | 481 | 699 |
Cash, end of period | 478 | 844 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Income taxes paid (recovered) | 71 | 104 |
Interest paid | $ 64 | $ 48 |
GENERAL
GENERAL | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | GENERAL Everest Reinsurance Holdings, Inc. (“Holdings”), a Delaware company and direct subsidiary of Everest Underwriting Group (Ireland) Limited, which is a direct subsidiary of Everest Group, Ltd. (“Group”), through its subsidiaries, principally provides property and casualty reinsurance and insurance in the United States of America and internationally. As used in this document, “Company” means Holdings and its subsidiaries. “Bermuda Re” means Everest Reinsurance (Bermuda), Ltd., a subsidiary of Group; “Everest Re” means Everest Reinsurance Company, a subsidiary of Holdings, and its subsidiaries (unless the context otherwise requires). |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The unaudited consolidated financial statements of the Company as of June 30, 2023 and December 31, 2022 and for the three and six months ended June 30, 2023 and 2022 include all adjustments, consisting of normal recurring accruals, which, in the opinion of management, are necessary for a fair statement of the results on an interim basis. Certain financial information, which is normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), has been omitted since it is not required for interim reporting purposes. The December 31, 2022 consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The results for the three and six months ended June 30, 2023 and 2022 are not necessarily indicative of the results for a full year. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the years ended December 31, 2022, 2021 and 2020, included in the Company’s most recent Form 10-K filing. The Company consolidates the results of operations and financial position of all voting interest entities ("VOE") in which the Company has a controlling financial interest and all variable interest entities ("VIE") in which the Company is considered to be the primary beneficiary. The consolidation assessment, including the determination as to whether an entity qualifies as a VIE or VOE, depends on the facts and circumstances surrounding each entity. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities (and disclosure of contingent assets and liabilities) at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Ultimate actual results could differ, possibly materially, from those estimates. All intercompany accounts and transactions have been eliminated. Application of Recently Issued Accounting Standard Changes. The Company did not adopt any new accounting standards that had a material impact during the three and six months ended June 30, 2023. The Company assessed the adoption impacts of recently issued accounting standards by the Financial Accounting Standards Board (“FASB”) on the Company’s consolidated financial statements as well as material updates to previous assessments, if any, from the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. There were no accounting standards issued in the six months ended June 30, 2023, that are expected to have a material impact on Holdings. Application of Methods and Assumption Changes. During 2023, the Company refined its premium estimation methodology for its risk attaching reinsurance contracts within its Reinsurance Segment to continue to recognize gross written premium over the term of the treaty, albeit over a different pattern than what was previously used. The refined estimate resulted in an increase of gross written premium during the three and six months ended June 30, 2023 periods and has further aligned the estimation methodology across the reinsurance division globally. This change had no impact on the total written premium to be recognized over the term of the treaty. There was no impact on net earned premium and therefore, no impact on income from continuing operations, net income, or any related per-share amounts. |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS The tables below present the amortized cost, allowance for credit losses, gross unrealized appreciation/(depreciation) and fair value of fixed maturity securities - available for sale for the periods indicated: At June 30, 2023 (Dollars in millions) Amortized Allowances for Unrealized Unrealized Fair Fixed maturity securities – available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 475 $ — $ — $ (37) $ 439 Obligations of U.S. states and political subdivisions 424 — 1 (30) 395 Corporate securities 4,552 (55) 21 (309) 4,209 Asset-backed securities 4,783 — 5 (111) 4,676 Mortgage-backed securities Commercial 567 — — (63) 503 Agency residential 1,817 — 3 (166) 1,654 Non-agency residential 60 — — (1) 59 Foreign government securities 735 — 3 (53) 684 Foreign corporate securities 1,729 (1) 5 (149) 1,583 Total fixed maturity securities - available for sale $ 15,141 $ (57) $ 37 $ (919) $ 14,202 (Some amounts may not reconcile due to rounding.) At December 31, 2022 (Dollars in millions) Amortized Allowances for Unrealized Unrealized Fair Fixed maturity securities – available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 575 $ — $ — $ (40) $ 535 Obligations of U.S. states and political subdivisions 444 — 2 (32) 413 Corporate securities 3,913 (45) 14 (322) 3,561 Asset-backed securities 4,111 — 5 (165) 3,951 Mortgage-backed securities Commercial 569 — — (59) 509 Agency residential 1,792 — 3 (167) 1,628 Non-agency residential 3 — — — 3 Foreign government securities 696 — 2 (61) 637 Foreign corporate securities 1,597 (1) 4 (167) 1,433 Total fixed maturity securities - available for sale $ 13,699 $ (46) $ 30 $ (1,013) $ 12,671 (Some amounts may not reconcile due to rounding.) The following tables show amortized cost, allowance for credit losses, gross unrealized appreciation/(depreciation) and fair value of fixed maturity securities - held to maturity for the periods indicated: At June 30, 2023 (Dollars in millions) Amortized Allowances for Unrealized Unrealized Fair Fixed maturity securities – held to maturity Corporate securities $ 152 $ (2) $ — $ (6) $ 144 Asset-backed securities 603 (6) 2 (15) 585 Mortgage-backed securities Commercial 14 — — — 13 Foreign corporate securities 28 (1) 2 — 29 Total fixed maturity securities - held to maturity $ 796 $ (8) $ 4 $ (21) $ 771 (Some amounts may not reconcile due to rounding.) At December 31, 2022 (Dollars in millions) Amortized Allowances for Unrealized Unrealized Fair Fixed maturity securities – held to maturity Corporate securities $ 152 $ (2) $ — $ (6) $ 144 Asset-backed securities 634 (6) 2 (15) 614 Mortgage-backed securities Commercial 7 — — — 7 Foreign corporate securities 28 (1) 2 — 28 Total fixed maturity securities - held to maturity $ 820 $ (9) $ 3 $ (22) $ 793 (Some amounts may not reconcile due to rounding.) The amortized cost and fair value of fixed maturity securities - available for sale are shown in the following table by contractual maturity. As the stated maturity of such securities may not be indicative of actual maturities, the totals for mortgage-backed and asset-backed securities are shown separately. At June 30, 2023 At December 31, 2022 (Dollars in millions) Amortized Fair Amortized Fair Fixed maturity securities – available for sale Due in one year or less $ 830 $ 799 $ 581 $ 563 Due after one year through five years 3,673 3,429 3,684 3,429 Due after five years through ten years 2,007 1,809 2,003 1,760 Due after ten years 1,404 1,273 958 827 Asset-backed securities 4,783 4,676 4,111 3,951 Mortgage-backed securities Commercial 567 503 569 509 Agency residential 1,817 1,654 1,792 1,628 Non-agency residential 60 59 3 3 Total fixed maturity securities - available for sale $ 15,141 $ 14,202 $ 13,699 $ 12,671 (Some amounts may not reconcile due to rounding.) The amortized cost and fair value of fixed maturity securities held to maturity - are shown in the following table by contractual maturity. As the stated maturity of such securities may not be indicative of actual maturities, the totals for mortgage-backed and asset-backed securities are shown separately. At June 30, 2023 At December 31, 2022 (Dollars in millions) Amortized Fair Amortized Fair Fixed maturity securities – held to maturity Due in one year or less $ 5 $ 5 $ 5 $ 5 Due after one year through five years 64 61 63 61 Due after five years through ten years 44 41 43 41 Due after ten years 68 65 68 65 Asset-backed securities 603 585 634 614 Mortgage-backed securities Commercial 14 13 7 7 Total fixed maturity securities - held to maturity $ 796 $ 771 $ 820 $ 793 (Some amounts may not reconcile due to rounding.) During the third quarter of 2022, the Company re-designated a portion of its fixed maturity securities from its fixed maturity – available for sale portfolio to its fixed maturity – held to maturity portfolio. The fair value of the securities reclassified at the date of transfer was $722 million, net of allowance for current expected credit losses, which was subsequently recognized as the new amortized cost basis. As of June 30, 2023, these securities had an unrealized loss of $46 million, which remained in accumulated other comprehensive income (“AOCI”) on the balance sheet, and will be amortized into income through an adjustment to the yields of the underlying securities over the remaining life of the securities. The fair values of these securities incorporate the use of significant unobservable inputs and therefore are classified as Level 3 within the fair value hierarchy. The Company evaluated fixed maturity securities classified as held to maturity for current expected credit losses as of June 30, 2023 utilizing risk characteristics of each security, including credit rating, remaining time to maturity, adjusted for prepayment considerations, and subordination level, and applying default and recovery rates, which include the incorporation of historical credit loss experience and macroeconomic forecasts, to develop an estimate of current expected credit losses. These fixed maturities classified as held to maturity are of a high credit quality and are all rated investment grade as of June 30, 2023. The changes in net unrealized appreciation (depreciation) for the Company’s investments are as follows: Three Months Ended Six Months Ended (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: Fixed maturity securities - available for sale and short-term investments $ (49) $ (512) $ 105 $ (1,008) Change in unrealized appreciation (depreciation), pre-tax (49) (512) 105 (1,008) Deferred tax benefit (expense) 10 107 (22) 211 Change in unrealized appreciation (depreciation), net of deferred taxes, included in stockholder's equity $ (38) $ (405) $ 83 $ (797) (Some amounts may not reconcile due to rounding.) The tables below display the aggregate fair value and gross unrealized depreciation of fixed maturity securities - available for sale, by security type and contractual maturity, in each case subdivided according to length of time that individual securities had been in a continuous unrealized loss position for the periods indicated: Duration of Unrealized Loss at June 30, 2023 By Security Type Less than 12 months Greater than 12 months Total (Dollars in millions) Fair Gross Fair Gross Fair Gross 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) Obligations of U.S. states and political subdivisions 77 (1) 199 (29) 276 (30) Corporate securities 1,135 (84) 2,128 (224) 3,263 (308) Asset-backed securities 1,058 (23) 2,426 (88) 3,484 (111) Mortgage-backed securities Commercial 17 (1) 480 (62) 497 (63) Agency residential 319 (5) 1,166 (160) 1,485 (166) Non-agency residential 57 (1) 3 — 59 (1) Foreign government securities 108 (2) 484 (51) 591 (53) Foreign corporate securities 293 (9) 1,112 (140) 1,405 (149) Total 3,092 (126) 8,406 (792) 11,498 (918) Securities where an allowance for credit loss was recorded — — — (1) 1 (1) Total fixed maturity securities - available for sale $ 3,093 $ (127) $ 8,406 $ (792) $ 11,499 $ (919) (Some amounts may not reconcile due to rounding.) Duration of Unrealized Loss at June 30, 2023 By Maturity Less than 12 months Greater than 12 months Total (Dollars in millions) Fair Gross Fair Gross Fair Gross Fixed maturity securities - available for sale Due in one year or less $ 214 $ (3) $ 473 $ (15) $ 687 $ (18) Due in one year through five years 533 (16) 2,413 (228) 2,946 (244) Due in five years through ten years 405 (16) 1,140 (186) 1,545 (203) Due after ten years 491 (60) 304 (52) 795 (112) Asset-backed securities 1,058 (23) 2,426 (88) 3,484 (111) Mortgage-backed securities 393 (7) 1,649 (223) 2,041 (230) Total 3,092 (126) 8,406 (792) 11,498 (918) Securities where an allowance for credit loss was recorded — — — (1) 1 (1) Total fixed maturity securities - available for sale $ 3,093 $ (127) $ 8,406 $ (792) $ 11,499 $ (919) (Some amounts may not reconcile due to rounding.) The aggregate fair value and gross unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position at June 30, 2023 were $11.5 billion and $919 million, respectively. The fair value of securities for the single issuer (the United States government) whose securities comprised the largest unrealized loss position at June 30, 2023, amounted to less than 3.1% of the overall fair value of the Company’s fixed maturity securities - available for sale. The fair value of the securities for the issuer with the second largest unrealized loss position at June 30, 2023 comprised less than 1.9% of the Company’s fixed maturity securities - available for sale. In addition, as indicated on the above table, there was no significant concentration of unrealized losses in any one market sector. The $127 million of unrealized losses related to fixed maturity securities - available for sale that have been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate securities, asset-backed securities and agency residential mortgage-backed securities. Of these unrealized losses, $98 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. The $792 million of unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position for more than one year related primarily to domestic and foreign corporate securities, agency residential and commercial mortgage-backed securities (“CMBS”), as well as asset-backed securities. Of these unrealized losses $738 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. In all instances, there were no projected cash flow shortfalls to recover the full book value of the investments and the related interest obligations. The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments. Based upon the Company’s current evaluation of securities in an unrealized loss position as of June 30, 2023, the unrealized losses are due to changes in interest rates and non-issuer-specific credit spreads and are not credit related. In addition, the contractual terms of these securities do not permit these securities to be settled at a price less than their amortized cost. The Company, given the size of its investment portfolio and capital position, does not have the intent to sell these securities; and it is more likely than not that the Company will not have to sell the security before recovery of its cost basis. In addition, all securities currently in an unrealized loss position are current with respect to principal and interest payments. The tables below display the aggregate fair value and gross unrealized depreciation of fixed maturity securities - available for sale, by security type and contractual maturity, in each case subdivided according to length of time that individual securities had been in a continuous unrealized loss position for the periods indicated: Duration of Unrealized Loss at December 31, 2022 By Security Type Less than 12 months Greater than 12 months Total (Dollars in millions) Fair Gross Fair Gross Fair Gross 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) Obligations of U.S. states and political subdivisions 235 (23) 27 (9) 261 (32) Corporate securities 2,138 (175) 841 (146) 2,979 (321) Asset-backed securities 3,120 (138) 436 (27) 3,556 (165) Mortgage-backed securities Commercial 464 (50) 36 (9) 500 (59) Agency residential 852 (54) 605 (113) 1,456 (167) Non-agency residential 2 — 1 — 3 — Foreign government securities 455 (36) 144 (25) 599 (61) Foreign corporate securities 967 (100) 365 (67) 1,332 (167) Total $ 8,522 $ (591) $ 2,698 $ (421) $ 11,220 $ (1,012) Securities where an allowance for credit loss was recorded 2 (1) — — 2 (1) Total fixed maturity securities - available for sale $ 8,524 $ (591) $ 2,698 $ (421) $ 11,222 $ (1,013) (Some amounts may not reconcile due to rounding.) Duration of Unrealized Loss at December 31, 2022 By Maturity Less than 12 months Greater than 12 months Total (Dollars in millions) Fair Gross Fair Gross Fair Gross Fixed maturity securities - available for sale Due in one year or less $ 463 $ (8) $ 29 $ (4) $ 491 $ (11) Due in one year through five years 2,020 (143) 936 (107) 2,956 (250) Due in five years through ten years 1,162 (148) 395 (98) 1,557 (246) Due after ten years 439 (50) 262 (64) 701 (114) Asset-backed securities 3,120 (138) 436 (27) 3,556 (165) Mortgage-backed securities 1,318 (105) 641 (122) 1,959 (226) Total $ 8,522 $ (591) $ 2,698 $ (421) $ 11,220 $ (1,012) Securities where an allowance for credit loss was recorded 2 (1) — — 2 (1) Total fixed maturity securities - available for sale $ 8,524 $ (591) $ 2,698 $ (421) $ 11,222 $ (1,013) (Some amounts may not reconcile due to rounding.) The aggregate fair value and gross unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position at December 31, 2022 were $11.2 billion and $1.0 billion, respectively. The fair value of securities for the issuer (the United States government) whose securities comprised the largest unrealized loss position at December 31, 2022, amounted to less than 4.3% of the overall fair value of the Company’s fixed maturity securities - available for sale. The fair value of the securities for the issuer with the second largest unrealized loss comprised less than 0.6% of the Company’s fixed maturity securities - available for sale. In addition, as indicated on the above table, there was no significant concentration of unrealized losses in any one market sector. The $591 million of unrealized losses related to fixed maturity securities - available for sale that have been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate securities, foreign government securities, asset-backed securities as well as commercial and agency residential mortgage-backed securities. Of these unrealized losses, $520 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. The $421 million of unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position for more than one year related primarily to domestic and foreign corporate securities as well as agency residential mortgage- backed securities. Of these unrealized losses $392 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. In all instances, there were no projected cash flow shortfalls to recover the full book value of the investments and the related interest obligations. The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments. The components of net investment income are presented in the table below for the periods indicated: Three Months Ended Six Months Ended (Dollars in millions) 2023 2022 2023 2022 Fixed maturities $ 199 $ 116 $ 374 $ 210 Equity securities 1 5 2 9 Short-term investments and cash 16 1 27 1 Other invested assets Limited partnerships 22 45 (1) 89 Dividends from preferred shares of affiliate 8 8 16 16 Other 6 14 27 26 Gross investment income before adjustments 252 188 444 350 Funds held interest income (expense) (1) 1 1 3 Interest income from Group 3 2 7 4 Gross investment income 253 190 453 357 Investment expenses (11) (14) (21) (24) Net investment income $ 242 $ 176 $ 432 $ 333 (Some amounts may not reconcile due to rounding.) The Company records results from limited partnership investments on the equity method of accounting with changes in value reported through net investment income. The net investment income from limited partnerships is dependent upon the Company’s share of the net asset values (“NAVs”) of interests underlying each limited partnership. Due to the timing of receiving financial information from these partnerships, the results are generally reported on a one month or quarter lag. If the Company determines there has been a significant decline in value of a limited partnership during this lag period, a loss will be recorded in the period in which the Company identifies the decline. The Company has contractual commitments to invest up to an additional $925 million in limited partnerships and private placement loan securities at June 30, 2023. These commitments will be funded when called in accordance with the partnership and loan agreements, which have investment periods that expire, unless extended, through 2027. During the fourth quarter of 2022, the Company entered into corporate-owned life insurance (“COLI”) policies, which are primarily invested in liquid credit, equity, and other assets, including alternative assets. The COLI policies are carried within other invested assets at policy cash surrender value of $968 million and $939 million as of June 30, 2023 and December 31, 2022, respectively. The Company participates in a private placement liquidity sweep facility (“the facility”). The primary purpose of the facility is to enhance the Company’s return on its short-term investments and cash positions. The facility invests in high quality, short-duration securities and permits daily liquidity. The Company consolidates its participation in the facility. As of June 30, 2023, the fair value of investments in the facility consolidated within the Company’s balance sheets was $449 million. Other invested assets, at fair value, as of June 30, 2023 and December 31, 2022, were comprised of preferred shares held in Everest Preferred International Holdings, Ltd. (“Preferred Holdings”), a wholly-owned subsidiary of Group. Variable Interest Entities The Company is engaged with various special purpose entities and other entities that are deemed to be VIEs primarily as an investor through normal investment activities but also as an investment manager. A VIE is an entity that either has investors that lack certain essential characteristics of a controlling financial interest, such as simple majority kick-out rights, or lacks sufficient funds to finance its own activities without financial support provided by other entities. The Company performs ongoing qualitative assessments of its VIEs to determine whether the Company has a controlling financial interest in the VIE and therefore is the primary beneficiary. The Company is deemed to have a controlling financial interest when it has both the ability to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. Based on the Company’s assessment, if it determines it is the primary beneficiary, the Company consolidates the VIE in the Company’s Consolidated Financial Statements. As of June 30, 2023 and December 31, 2022, the Company did not hold any securities for which it is the primary beneficiary. The Company, through normal investment activities, makes passive investments in general and limited partnerships and other alternative investments. For these non-consolidated VIEs, the Company has determined it is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic performance of the investments. The Company’s maximum exposure to loss as of June 30, 2023 and December 31, 2022 is limited to the total carrying value of $2.9 billion and $2.8 billion, respectively, which are included in general and limited partnerships and other alternative investments in Other Invested Assets in the Company's Consolidated Balance Sheets. As of June 30, 2023, the Company has outstanding commitments totaling $871 million whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. These investments are generally of a passive nature in that the Company does not take an active role in management. In addition, the Company makes passive investments in structured securities issued by VIEs for which the Company is not the manager. These investments are included in asset-backed securities, which includes collateralized loan obligations and are classified as fixed maturities. The Company has not provided financial or other support with respect to these investments other than its original investment. For these investments, the Company determined it is not the primary beneficiary due to the relative size of the Company’s investment in comparison to the principal amount of the structured securities issued by the VIEs, credit subordination that reduces the Company’s obligation to absorb losses or right to receive benefits or the Company’s inability to direct the activities that most significantly impact the economic performance of the VIEs. The Company’s maximum exposure to loss on these investments is limited to the amount of the Company’s investment. The components of net gains (losses) on investments are presented in the table below for the periods indicated: Three Months Ended Six Months Ended (Dollars in millions) 2023 2022 2023 2022 Fixed maturity securities Allowances for credit losses $ — $ 2 $ (10) $ — Net realized gains (losses) from dispositions (7) (10) (9) (15) Equity securities, fair value Net realized gains (losses) from dispositions — (30) 7 (38) Gains (losses) from fair value adjustments 8 (186) 11 (317) Other invested assets — 1 — 5 Other invested assets, fair value Gains (losses) from fair value adjustments (23) (155) 1 (239) Total net gains (losses) on investments $ (22) $ (378) $ — $ (605) (Some amounts may not reconcile due to rounding.) The following tables provide a roll forward of the Company’s beginning and ending balance of allowance for credit losses for the periods indicated: Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Corporate Asset Backed Foreign Total Corporate Asset Foreign Total (Dollars in millions) Beginning balance $ (55) $ — $ (1) $ (56) $ (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 — — — — — — — — Reduction in allowance due to disposals 1 — — 1 4 — — 4 Balance, end of period $ (55) $ — $ (1) $ (57) $ (55) $ — $ (1) $ (57) (Some amounts may not reconcile due to rounding.) Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 (Dollars in millions) Corporate Asset Foreign Total Corporate Asset Foreign Total Beginning balance $ (20) $ (8) $ (1) $ (29) $ (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 — — — — — — — — Reduction in allowance due to disposals — 8 — 8 1 8 — 9 Balance, end of period $ (26) $ — $ (2) $ (27) $ (26) $ — $ (2) $ (27) (Some amounts may not reconcile due to rounding.) Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Corporate Asset Backed Foreign Total Corporate Asset Foreign Total (Dollars in millions) Beginning balance $ (2) $ (6) $ (1) $ (9) $ (2) $ (6) $ (1) $ (9) Credit losses on securities where credit losses were not previously recorded — — — — — — — — Increases in allowance on previously impaired securities — — — — — — — — Decreases in allowance on previously impaired securities — — — — — — — — Reduction in allowance due to disposals — — — — — — — — Balance, end of period $ (2) $ (6) $ (1) $ (8) $ (2) $ (6) $ (1) $ (8) (Some amounts may not reconcile due to rounding.) The proceeds and split between gross gains and losses from dispositions of fixed maturity and equity securities are presented in the table below for the periods indicated: Three Months Ended Six Months Ended (Dollars in millions) 2023 2022 2023 2022 Proceeds from sales of fixed maturity securities - available for sale $ 59 $ 245 $ 109 $ 511 Gross gains from dispositions 1 3 4 6 Gross losses from dispositions (8) (13) (12) (21) Proceeds from sales of equity securities $ — $ 343 $ 46 $ 425 Gross gains from dispositions — 4 7 8 Gross losses from dispositions — (34) — (46) (Some amounts may not reconcile due to rounding.) |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE GAAP guidance regarding fair value measurements addresses how companies should measure fair value when they are required to use fair value measures for recognition or disclosure purposes under GAAP and provides a common definition of fair value to be used throughout GAAP. It defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly fashion between market participants at the measurement date. In addition, it establishes a three-level valuation hierarchy for the disclosure of fair value measurements. The valuation hierarchy is based on the transparency of inputs to the valuation of an asset or liability. The level in the hierarchy within which a given fair value measurement falls is determined based on the lowest level input that is significant to the measurement, with Level 1 being the highest priority and Level 3 being the lowest priority. The levels in the hierarchy are defined as follows: Level 1: Inputs to the valuation methodology are observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in an active market; Level 2: Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company’s fixed maturity and equity securities are primarily managed by third party investment asset managers. The investment asset managers managing publicly traded securities obtain prices from nationally recognized pricing services. These services seek to utilize market data and observations in their evaluation process. They use pricing applications that vary by asset class and incorporate available market information, and when fixed maturity securities do not trade on a daily basis, the services will apply available information through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing. In addition, they use model processes, such as the Option Adjusted Spread model to develop prepayment and interest rate scenarios for securities that have prepayment features. The investment asset managers do not make any changes to prices received from either the pricing services or the investment brokers. In addition, the investment asset managers have procedures in place to review the reasonableness of the prices from the service providers and may request verification of the prices. The Company also continually performs quantitative and qualitative analysis of prices, including but not limited to initial and ongoing review of pricing methodologies, review of prices obtained from pricing services and third party investment asset managers, review of pricing statistics and trends, and comparison of prices for certain securities with a secondary price source for reasonableness. No material variances were noted during these price validation procedures. In limited situations, where financial markets are inactive or illiquid, the Company may use its own assumptions about future cash flows and risk-adjusted discount rates to determine fair value. At June 30, 2023, $1.8 billion of fixed maturities were fair valued using unobservable inputs. The majority of these fixed maturities were valued by investment managers’ valuation committees and many of these fair values were substantiated by valuations from independent third parties. The Company has procedures in place to evaluate these independent third party valuations. At December 31, 2022, $1.7 billion of fixed maturities were fair valued using unobservable inputs. The Company internally manages a portfolio of assets which had a fair value at June 30, 2023 and December 31, 2022 of $4.0 billion and $2.7 billion, respectively, primarily comprised of collateralized loan obligations included in asset-backed securities, preferred stock and U.S. treasury fixed maturities. All prices for these securities were obtained from publicly published sources or nationally recognized pricing vendors. Equity securities denominated in U.S. currency with quoted prices in active markets for identical assets are categorized as Level 1 since the quoted prices are directly observable. Equity securities traded on foreign exchanges are categorized as Level 2 due to the added input of a foreign exchange conversion rate to determine fair value. The Company uses foreign currency exchange rates published by nationally recognized sources. Fixed maturity securities listed in the tables below are generally categorized as Level 2, since a particular security may not have traded but the pricing services are able to use valuation models with observable market inputs such as interest rate yield curves and prices for similar fixed maturity securities in terms of issuer, maturity and seniority. For foreign government securities and foreign corporate securities, the fair values are provided by the third party pricing services in local currencies, and where applicable, are converted to U.S. dollars using currency exchange rates from nationally recognized sources. In addition to the valuations from investment managers, some of the fixed maturities with fair values categorized as Level 3 result when prices are not available from the nationally recognized pricing services and are derived using unobservable inputs. The Company will value the securities with unobservable inputs using comparable market information or receive fair values from investment managers. The investment managers may obtain non-binding price quotes for the securities from brokers. The single broker quotes are provided by market makers or broker-dealers who are recognized as market participants in the markets in which they are providing the quotes. The prices received from brokers are reviewed for reasonableness by the third party asset managers and the Company. If the broker quotes are for foreign denominated securities, the quotes are converted to U.S. dollars using currency exchange rates from nationally recognized sources. The composition and valuation inputs for the presented fixed maturities categories Level 1 and Level 2 are as follows: • U.S. Treasury securities and obligations of U.S. government agencies and corporations are primarily comprised of U.S. Treasury bonds, and the fair value is based on observable market inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields; • Obligations of U.S. states and political subdivisions are comprised of state and municipal bond issuances, and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads; • Corporate securities are primarily comprised of U.S. corporate and public utility bond issuances, and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads; • Asset-backed and mortgage-backed securities fair values are based on observable inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields and cash flow models using observable inputs such as prepayment speeds, collateral performance and default spreads; • Foreign government securities are comprised of global non-U.S. sovereign bond issuances, and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source; • Foreign corporate securities are comprised of global non-U.S. corporate bond issuances, and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source. The following tables present the fair value measurement levels for all assets, which the Company has recorded at fair value as of the periods indicated: Fair Value Measurement Using (Dollars in millions) June 30, 2023 Quoted Prices Significant Significant Assets: Fixed maturities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 439 $ — $ 439 $ — Obligations of U.S. states and political subdivisions 395 — 395 — Corporate securities 4,209 — 3,498 711 Asset-backed securities 4,676 — 3,561 1,115 Mortgage-backed securities Commercial 503 — 503 — Agency residential 1,654 — 1,654 — Non-agency residential 59 — 59 — Foreign government securities 684 — 684 — Foreign corporate securities 1,583 — 1,567 16 Total fixed maturities - available for sale 14,202 — 12,360 1,842 Equity securities, fair value 167 145 22 — Other invested assets, fair value 1,474 — — 1,474 (Some amounts may not reconcile due to rounding.) Fair Value Measurement Using (Dollars in millions) December 31, 2022 Quoted Prices Significant Significant Assets: Fixed maturities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 535 $ — $ 535 $ — Obligations of U.S. states and political subdivisions 413 — 413 — Corporate securities 3,561 — 2,846 715 Asset-backed securities 3,951 — 2,957 994 Mortgage-backed securities Commercial 509 — 509 — Agency residential 1,628 — 1,628 — Non-agency residential 3 — 3 — Foreign government securities 637 — 637 — Foreign corporate securities 1,433 — 1,417 16 Total fixed maturities - available for sale 12,671 — 10,946 1,725 Equity securities, fair value 194 132 63 — Other invested assets, fair value 1,472 — — 1,472 (Some amounts may not reconcile due to rounding.) In addition, $293 million and $292 million of investments within other invested assets on the consolidated balance sheets as of June 30, 2023 and December 31, 2022, respectively, are not included within the fair value hierarchy tables, as the assets are measured at NAV as a practical expedient to determine fair value. The following tables present the activity under Level 3, fair value measurements using significant unobservable inputs for fixed maturities - available for sale, for the periods indicated: Total Fixed Maturities - Available for Sale Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 (Dollars in millions) Corporate Asset Backed Foreign Total Corporate Asset Backed Foreign Total Beginning balance of fixed maturities $ 709 $ 1,020 $ 16 $ 1,745 $ 715 $ 994 $ 16 $ 1,725 Total gains or (losses) (realized/unrealized) Included in earnings 1 — — 1 2 — — 2 Included in other comprehensive income (loss) (2) (8) — (9) (6) 10 — 4 Purchases, issuances and settlements 3 103 — 105 — 111 — 111 Transfers in (out) of Level 3 and reclassification of securities in/(out) investment categories — — — — — — — — Ending balance of fixed maturities $ 711 $ 1,115 $ 16 $ 1,842 $ 711 $ 1,115 $ 16 $ 1,842 The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date $ — $ — $ — $ — $ — $ — $ — $ — (Some amounts may not reconcile due to rounding.) Total Fixed Maturities - Available for Sale Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 (Dollars in millions) Corporate Asset Backed CMBS Foreign Total Corporate Asset Backed CMBS Foreign 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 (Some amounts may not reconcile due to rounding.) There were no transfers of assets in/(out) of Level 3 for the three and six months ended June 30, 2023 and 2022, respectively. Financial Instruments Disclosed, But Not Reported, at Fair Value Certain financial instruments disclosed, but not reported, at fair value are excluded from the fair value hierarchy tables above. Fair values and valuation hierarchy of fixed maturity securities - held to maturity, senior notes and long-term subordinated notes can be found within Notes 3, 7 and 8, respectively. Fair values of long-term notes receivable from affiliates can be found within Note 13. Short-term investments are stated at cost, which approximates fair value. |
RESERVES FOR LOSSES, LAE AND FU
RESERVES FOR LOSSES, LAE AND FUTURE POLICY BENEFIT RESERVE | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
RESERVES FOR LOSSES, LAE AND FUTURE POLICY BENEFIT RESERVE | RESERVES FOR LOSSES, LAE AND FUTURE POLICY BENEFIT RESERVE Activity in the reserve for losses and loss adjustment expenses (“LAE”) is summarized for the periods indicated: Six Months Ended (Dollars in millions) 2023 2022 Gross reserves beginning of period $ 14,977 $ 13,121 Less reinsurance recoverables on unpaid losses (3,684) (3,651) Net reserves beginning of period 11,294 9,470 Incurred related to: Current year 2,720 2,521 Prior years (1) 9 Total incurred losses and LAE 2,719 2,530 Paid related to: Current year 937 775 Prior years 1,019 1,063 Total paid losses and LAE 1,956 1,838 Foreign exchange/translation adjustment 15 (17) Net reserves end of period 12,072 10,145 Plus reinsurance recoverables on unpaid losses 3,440 3,593 Gross reserves end of period $ 15,512 $ 13,738 (Some amounts may not reconcile due to rounding.) Current year incurred losses were $2.7 billion and $2.5 billion for the six months ended June 30, 2023 and 2022, respectively. Gross and net reserves increased for the six months ended June 30, 2023, reflecting an increase in underlying exposure due to earned premium growth year over year and the impact of a decrease of $24 million in current year catastrophe losses in 2023 compared to 2022. The Company has estimated and recognized $25 million of reinsurance recoveries related to Hurricane Ian. |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Reinsurance operation writes worldwide property and casualty reinsurance and specialty lines of business, on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies. Business is written in the United States and Bermuda as well as through branches in Canada and Singapore. The Insurance operation writes property and casualty insurance directly and through brokers, surplus lines brokers and general agents within the United States and Bermuda. These segments are managed independently, but conform with corporate guidelines with respect to pricing, risk management, control of aggregate catastrophe exposures, capital, investments and support operations. Management generally monitors and evaluates the financial performance of these operating segments based upon their underwriting results. Underwriting results include earned premium less losses and LAE incurred, commission and brokerage expenses and other underwriting expenses. The Company measures its underwriting results using ratios, in particular loss, commission and brokerage and other underwriting expense ratios, which, respectively, result from dividing incurred losses, commissions and brokerage and other underwriting expenses by premiums earned. The Company does not maintain separate balance sheet data for its operating segments. Accordingly, the Company does not review and evaluate the financial results of its operating segments based upon balance sheet data. The following tables present the underwriting results for the operating segments for the periods indicated: Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 (Dollars in millions) Reinsurance Insurance Total Reinsurance Insurance Total Gross written premiums $ 1,791 $ 1,125 $ 2,915 $ 3,434 $ 1,977 $ 5,411 Net written premiums 1,580 816 2,396 2,953 1,506 4,459 Premiums earned $ 1,417 $ 714 $ 2,131 $ 2,784 $ 1,416 $ 4,200 Incurred losses and LAE 864 460 1,325 1,794 925 2,719 Commission and brokerage 363 70 433 724 145 869 Other underwriting expenses 36 100 136 75 200 275 Underwriting gain (loss) $ 153 $ 84 $ 237 $ 191 $ 145 $ 336 Net investment income 242 432 Net gains (losses) on investments (22) — Corporate expense (4) (10) Interest, fee and bond issue cost amortization expense (33) (65) Other income (expense) (10) (15) Income (loss) before taxes $ 411 $ 679 (Some amounts may not reconcile due to rounding) Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 (Dollars in millions) Reinsurance Insurance Total Reinsurance Insurance Total Gross written premiums $ 1,394 $ 1,043 $ 2,437 $ 2,774 $ 1,868 $ 4,642 Net written premiums 1,245 750 1,995 2,430 1,360 3,791 Premiums earned $ 1,295 $ 659 $ 1,954 $ 2,504 $ 1,279 $ 3,783 Incurred losses and LAE 875 429 1,304 1,696 834 2,530 Commission and brokerage 332 77 409 647 146 793 Other underwriting expenses 32 88 120 63 175 238 Underwriting gain (loss) $ 55 $ 66 $ 121 $ 98 $ 124 $ 222 Net investment income 176 333 Net gains (losses) on investments (378) (605) Corporate expense (6) (12) Interest, fee and bond issue cost amortization expense (24) (48) Other income (expense) — (9) Income (loss) before taxes $ (110) $ (119) (Some amounts may not reconcile due to rounding) |
SENIOR NOTES
SENIOR NOTES | 6 Months Ended |
Jun. 30, 2023 | |
Senior Notes [Abstract] | |
SENIOR NOTES | SENIOR NOTES The table below displays Holdings’ outstanding senior notes. Fair value is based on quoted market prices, but due to limited trading activity, these senior notes are considered Level 2 in the fair value hierarchy. June 30, 2023 December 31, 2022 (Dollars in millions) Date Issued Date Due Principal Consolidated Fair Consolidated Fair 4.868% Senior notes 6/5/2014 6/1/2044 400 $ 397 $ 360 $ 397 $ 343 3.5% Senior notes 10/7/2020 10/15/2050 1,000 981 714 981 677 3.125% Senior notes 10/4/2021 10/15/2052 1,000 970 664 969 627 2,400 $ 2,348 $ 1,738 $ 2,347 $ 1,647 (Some amounts may not reconcile due to rounding.) Interest expense incurred in connection with these senior notes is as follows for the periods indicated: Three Months Ended Six Months Ended (Dollars in millions) Interest Paid Payable Dates 2023 2022 2023 2022 4.868% Senior notes semi-annually June 1/December 1 $ 5 $ 5 $ 10 $ 10 3.5% Senior notes semi-annually April 15/October 15 9 9 18 18 3.125% Senior notes semi-annually April 15/October 15 8 8 16 16 $ 22 $ 22 $ 43 $ 43 (Some amounts may not reconcile due to rounding.) |
LONG-TERM SUBORDINATED NOTES
LONG-TERM SUBORDINATED NOTES | 6 Months Ended |
Jun. 30, 2023 | |
Long-Term Debt, Unclassified [Abstract] | |
LONG-TERM SUBORDINATED NOTES | LONG-TERM SUBORDINATED NOTES The table below displays Holdings’ outstanding fixed to floating rate long-term subordinated notes (“Subordinated Notes Issued 2007”). Fair value is based on quoted market prices, but due to limited trading activity, these subordinated notes are considered Level 2 in the fair value hierarchy. June 30, 2023 December 31, 2022 Original Maturity Date Consolidated Fair Consolidated Fair (Dollars in millions) Date Issued Scheduled Final Long-term subordinated notes 4/26/2007 $ 400 5/15/2037 5/1/2067 $ 218 $ 187 $ 218 $ 187 During the fixed rate interest period from May 3, 2007 through May 14, 2017, interest was at the annual rate of 6.6%, payable semi-annually in arrears on November 15 and May 15 of each year, commencing on November 15, 2007. During the floating rate interest period from May 15, 2017 through maturity, interest will be based on the 3 month LIBOR plus 238.5 basis points, reset quarterly, payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, subject to Holdings’ right to defer interest on one or more occasions for up to ten Holdings may redeem the long-term subordinated notes on or after May 15, 2017, in whole or in part at 100% of the principal amount plus accrued and unpaid interest; however, redemption on or after the scheduled maturity date and prior to May 1, 2047 is subject to a replacement capital covenant. This covenant is for the benefit of certain senior note holders and it mandates that Holdings receive proceeds from the sale of another subordinated debt issue, of at least similar size, before it may redeem the subordinated notes. The Company’s 4.868% senior notes, due on June 1, 2044, 3.5% senior notes due on October 15, 2050 and 3.125% senior notes due on October 15, 2052 are the Company’s long-term indebtedness that rank senior to the long-term subordinated notes. In 2009, the Company had reduced its outstanding amount of long-term subordinated notes through the initiation of a cash tender offer for any and all of the long-term subordinated notes. Interest expense incurred in connection with these long-term subordinated notes is as follows for the periods indicated: Three Months Ended Six Months Ended (Dollars in millions) 2023 2022 2023 2022 Interest expense incurred $ 4 $ 2 $ 8 $ 3 |
FEDERAL HOME LOAN BANK MEMBERSH
FEDERAL HOME LOAN BANK MEMBERSHIP | 6 Months Ended |
Jun. 30, 2023 | |
Federal Home Loan Bank Membership [Abstract] | |
FEDERAL HOME LOAN BANK MEMBERSHIP | FEDERAL HOME LOAN BANK MEMBERSHIPEverest Re is a member of the Federal Home Loan Bank of New York (“FHLBNY”), which allows Everest Re to borrow up to 10% of its statutory admitted assets. As of June 30, 2023, Everest Re had admitted assets of approximately $24 billion which provides borrowing capacity in excess of $2 billion. As of June 30, 2023, Everest Re has $519 million of borrowings outstanding, all of which expire in 2023. Everest Re incurred interest expense of $7 million and $0.8 million for the three months ended June 30, 2023 and 2022, respectively. Everest Re incurred interest expense of $13 million and $2 million for the six months ended June 30, 2023 and 2022, respectively. The FHLBNY membership agreement requires that 4.5% of borrowed funds be used to acquire additional membership stock. |
COLLATERALIZED REINSURANCE AND
COLLATERALIZED REINSURANCE AND TRUST AGREEMENTS | 6 Months Ended |
Jun. 30, 2023 | |
Collateralized Reinsurance And Trust Agreements [Abstract] | |
COLLATERALIZED REINSURANCE AND TRUST AGREEMENTS | COLLATERALIZED REINSURANCE AND TRUST AGREEMENTS A subsidiary of the Company, Everest Re, has established a trust agreement, which effectively uses Everest Re’s investments as collateral, as security for assumed losses payable to non-affiliated ceding companies. At June 30, 2023, the total amount on deposit in the trust account was $717 million, which included $82 million of restricted cash. At June 30, 2022, the total amount on deposit in the trust account was $554 million, which included $187 million of restricted cash. The Company entered into various collateralized reinsurance agreements with Kilimanjaro Re Limited (“Kilimanjaro”), a Bermuda-based special purpose reinsurer, to provide the Company with catastrophe reinsurance coverage. These agreements are multi-year reinsurance contracts which cover named storm and earthquake events. The table below summarizes the various agreements: (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 June 30, 2023 $ 1,800 Recoveries under these collateralized reinsurance agreements with Kilimanjaro are primarily dependent on estimated industry level insured losses from covered events as well as the geographic location of the events. The estimated industry level of insured losses is obtained from published estimates by an independent recognized authority on insured property losses. As of June 30, 2023, the Company has up to $350 million of catastrophe bond protection (“CAT Bond”) that attaches at a $48.1 billion Property Claims Services (“PCS”) Industry loss threshold. This recovery would be recognized on a pro-rata basis up to a $63.8 billion PCS Industry loss level. PCS’s current industry estimate of $49.4 billion issued in July 2023 exceeds the attachment point. The recovery under the CAT Bond, included in the Company’s financial results, is currently estimated to be $25 million, subject to further revision of the industry loss estimate. Kilimanjaro has financed the various property catastrophe reinsurance coverages by issuing catastrophe bonds to unrelated, external investors. The proceeds from the issuance of the catastrophe bonds are held in reinsurance trusts throughout the duration of the applicable reinsurance agreements and invested solely in U.S. government money market funds with a rating of at least “AAAm” by Standard & Poor’s. The catastrophe bonds’ issue date, maturity date and amount correspond to the reinsurance agreements listed above. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES In the ordinary course of business, the Company is involved in lawsuits, arbitrations and other formal and informal dispute resolution procedures, the outcomes of which will determine the Company’s rights and obligations under insurance and reinsurance agreements. In some disputes, the Company seeks to enforce its rights under an agreement or to collect funds owing to it. In other matters, the Company is resisting attempts by others to collect funds or enforce alleged rights. These disputes arise from time to time and are ultimately resolved through both informal and formal means, including negotiated resolution, arbitration and litigation. In all such matters, the Company believes that its positions are legally and commercially reasonable. The Company considers the statuses of these proceedings when determining its reserves for unpaid loss and LAE. Aside from litigation and arbitrations related to these insurance and reinsurance agreements, the Company is not a party to any other material litigation or arbitration. |
OTHER COMPREHENSIVE INCOME (LOS
OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2023 | |
Other Comprehensive Income (Loss), Tax [Abstract] | |
OTHER COMPREHENSIVE INCOME (LOSS) | OTHER COMPREHENSIVE INCOME (LOSS) The following tables present the components of comprehensive income (loss) in the consolidated statements of operations for the periods indicated: Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 (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 Reclassification of net realized losses (gains) included in net income (loss) 8 (2) 6 19 (4) 15 Foreign currency translation adjustments (5) 1 (4) 3 (1) 2 Reclassification of amortization of net gain (loss) included in net income (loss) 1 — — 1 — 1 Total other comprehensive income (loss) $ (53) $ 11 $ (42) $ 109 $ (23) $ 86 (Some amounts may not reconcile due to rounding) Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 (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) Reclassification of net realized losses (gains) included in net income (loss) 8 (2) 6 11 (2) 8 Foreign currency translation adjustments (12) 3 (10) (15) 3 (12) Reclassification of amortization of net gain (loss) included in net income (loss) 1 — 1 2 — 2 Total other comprehensive income (loss) $ (524) $ 110 $ (414) $ (1,021) $ 214 $ (807) (Some amounts may not reconcile due to rounding) The following table presents details of the amounts reclassified from AOCI for the periods indicated: Three Months Ended Six Months Ended Affected line item within the AOCI component 2023 2022 2023 2022 (Dollars in millions) URA(D) on securities $ 8 $ 8 $ 19 $ 11 Other net gains (losses) on investments (2) (2) (4) (2) Income tax expense (benefit) $ 6 $ 6 $ 15 $ 8 Net income (loss) Benefit plan net gain (loss) $ 1 $ 1 $ 1 $ 2 Other underwriting expenses — — — — Income tax expense (benefit) $ — $ 1 $ 1 $ 2 Net income (loss) (Some amounts may not reconcile due to rounding) The following table presents the components of accumulated other comprehensive income (loss), net of tax, in the consolidated balance sheets for the periods indicated: Three Months Ended Six Months Ended (Dollars in millions) 2023 2022 2023 2022 Beginning balance of URA(D) on securities $ (695) $ (270) $ (816) $ 122 Current period change in URA(D) of investments - non-credit related (38) (405) 83 (797) Ending balance of URA(D) on securities (734) (675) (734) (675) Beginning balance of foreign currency translation adjustments 8 18 2 20 Current period change in foreign currency translation adjustments (4) (10) 2 (12) Ending balance of foreign currency translation adjustments 4 8 4 8 Beginning balance of benefit plan net gain (loss) (33) (50) (33) (51) Current period change in benefit plan net gain (loss) — 1 1 2 Ending balance of benefit plan net gain (loss) (32) (49) (32) (49) Ending balance of accumulated other comprehensive income (loss) $ (762) $ (716) $ (762) $ (716) (Some amounts may not reconcile due to rounding.) |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED-PARTY TRANSACTIONS | RELATED-PARTY TRANSACTIONS The table below displays long-term note agreements that Group entered into with Everest Re for the periods indicated. These transactions are presented as Notes Receivable – Affiliated in the Consolidated Balance Sheet of Holdings. All note agreements listed were repaid in full during the second quarter of 2023 and are no longer outstanding as of June 30, 2023. Fair value of these long-term notes is considered Level 2 in the fair value hierarchy. June 30, 2023 December 31, 2022 (Dollars in millions) Date Issued Date Due Principal Consolidated Fair Consolidated Fair 1.69% Long-term Note 12/17/2019 12/17/2028 300 $ — $ — $ 300 $ 242 1.00% Long-term Note 8/5/2021 8/5/2030 200 — — 200 151 3.11% Long-term Note 6/14/2022 6/14/2052 215 — — 215 171 4.34%Long-term Note 12/12/2022 12/12/2052 125 — — 125 125 840 $ — $ — $ 840 $ 689 (Some amounts may not reconcile due to rounding) Interest income recognized in connection with these long-term notes is as follows for the periods indicated: Three Months Ended Six Months Ended (Dollars in millions) Interest Received Receivable Dates 2023 2022 2023 2022 1.69% Long-term Note annually December 17 $ 1 $ 1 $ 2 $ 3 1.00% Long-term Note annually August 5 — 1 1 1 3.11% Long-term Note annually June 14 1 — 3 — 4.34% Long-term Note annually December 12 1 — 2 — $ 3 $ 2 $ 7 $ 4 (Some amounts may not reconcile due to rounding) Holdings holds 1,773.214 preferred shares of Preferred Holdings with a $1 million par value and 1.75% annual dividend rate. Holdings received these shares in December 2015 in exchange for previously held 9,719,971 common shares of Group. After the exchange, Holdings no longer holds any shares or has any ownership interest in Group. Holdings has reported the preferred shares in Preferred Holdings, as other invested assets, fair value, in the consolidated balance sheets with changes in fair value re-measurement recorded in net gains (losses) on investments in the consolidated statements of operations and comprehensive income (loss). The following table presents the dividends received on the preferred shares of Preferred Holdings that are reported as net investment income in the consolidated statements of operations and comprehensive income (loss) for the period indicated: Three Months Ended Six Months Ended (Dollars in millions) 2023 2022 2023 2022 Dividends received on preferred stock of affiliate $ 8 $ 8 $ 16 $ 16 Affiliates The Company has engaged in reinsurance transactions with Bermuda Re, Everest Reinsurance Company (Ireland) dac (“Ireland Re”), Everest Insurance (Ireland) dac (“Ireland Insurance”), Everest International Reinsurance Ltd. (“Everest International”), Everest Insurance Company of Canada (“Everest Canada”), Lloyd’s Syndicate 2786 and Mt. Logan Re, which are affiliated companies primarily driven by enterprise risk and capital management considerations under which business is ceded at market rates and terms. The table below represents affiliated quota share reinsurance agreements for all new and renewal business for the indicated coverage period: (Dollars in millions) Coverage Period Ceding Company Percent Ceded Assuming Company Type of Business Single Occurrence Limit Aggregate Limit 01/01/2010-12/31/2010 Everest Re 44.0 % Bermuda Re property / casualty business 150 325 01/01/2011-12/31/2011 Everest Re 50.0 % Bermuda Re property / casualty business 150 300 01/01/2012-12/31/2014 Everest Re 50.0 % Bermuda Re property / casualty business 100 200 01/01/2015-12/31/2016 Everest Re 50.0 % Bermuda Re property / casualty business 163 325 01/01/2017-12/31/2017 Everest Re 60.0 % Bermuda Re property / casualty business 219 438 01/01/2010-12/31/2010 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 Everest Re- Canadian Branch 75.0 % Bermuda Re property / casualty business 206 (1) 413 (1) 01/01/2013-12/31/2013 Everest Re- Canadian Branch 75.0 % Bermuda Re property / casualty business 150 (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 Everest Canada 80.0 % Everest Re- Canadian Branch property business — — 01/01/2020 Everest International Assurance 100.0 % Bermuda Re life business — — (1) Amounts shown are Canadian dollars. Effective January 1, 2018, Everest Re entered into a twelve month whole account aggregate stop loss reinsurance contract (“stop loss agreement”) with Bermuda Re. The stop loss agreement provides coverage for ultimate net losses on applicable net earned premiums above a retention level, subject to certain other coverage limits and conditions. The stop loss agreement was most recently renewed effective January 1, 2023. Everest Re entered into a catastrophe excess of loss reinsurance contract with Bermuda Re (UK Branch), effective January 1, 2021 through December 31, 2021. The contract provides Bermuda Re (UK Branch) with up to £110 million of reinsurance coverage for each catastrophe occurrence above £29 million. Bermuda Re (UK Branch) paid Everest Re £4 million for this coverage. This contract was most recently renewed effective January 1, 2023. Everest Re entered into a catastrophe excess of loss reinsurance contract with Ireland Re, effective February 1, 2023 through January 31, 2024. The contract provides Ireland Re with up to €121 million of reinsurance coverage for each catastrophe occurrence above €18 million. Ireland Re paid Everest Re €10 million for this coverage. Everest Re entered into a catastrophe excess of loss reinsurance contract with Ireland Re, effective March 31, 2023 through January 31, 2024. The contract provides Ireland Re with up to €61 million of reinsurance coverage for each catastrophe occurrence above €139 million. Ireland Re paid Everest Re €2 million for this coverage. The table below represents loss portfolio transfer (“LPT”) reinsurance agreements whereby net insurance exposures and reserves were transferred to an affiliate. (Dollars in millions) Effective Date Transferring Company Assuming Company % of Business or Amount of Transfer Covered Period of Transfer 10/01/2001 Everest Re (Belgium Branch) Bermuda Re 100 % All years 10/01/2008 Everest Re Bermuda Re $ 747 01/01/2002-12/31/2007 12/31/2017 Everest Re Bermuda Re $ 970 All years On December 31, 2017, the Company entered into a LPT agreement with Bermuda Re. The LPT agreement covers subject loss reserves of $2.3 billion for accident years 2017 and prior. As a result of the LPT agreement, the Company transferred $1.0 billion of cash and fixed maturity securities and transferred $970 million of loss reserves to Bermuda Re. As part of the LPT agreement, Bermuda Re will provide an additional $500 million of adverse development coverage on the subject loss reserves. As of June 30, 2023 and December 31, 2022, the Company has a reinsurance recoverable of $803 million and $804 million, respectively, recorded on its balance sheet due from Bermuda Re. The following tables summarize the significant premiums and losses ceded and assumed by the Company to affiliated entities: Bermuda Re Three Months Ended Six Months Ended (Dollars in millions) 2023 2022 2023 2022 Ceded written premiums $ 107 $ 91 $ 214 $ 184 Ceded earned premiums 107 91 213 184 Ceded losses and LAE (5) 3 (9) 1 Assumed written premiums 4 1 4 3 Assumed earned premiums 3 1 3 5 Assumed losses and LAE — — — — Ireland Re Three Months Ended Six Months Ended (Dollars in millions) 2023 2022 2023 2022 Assumed written premiums $ 3 $ 2 $ 6 $ 4 Assumed earned premiums 3 2 6 5 Assumed losses and LAE 1 — 1 2 Ireland Insurance Three Months Ended Six Months Ended (Dollars in millions) 2023 2022 2023 2022 Assumed written premiums $ 11 $ 2 $ 12 $ 4 Assumed earned premiums 8 2 10 4 Assumed losses and LAE 2 (5) 4 2 The following table summarizes the premiums and losses that are ceded by the Company to Mt. Logan Re segregated accounts: Mt. Logan Re Segregated Accounts Three Months Ended Six Months Ended (Dollars in millions) 2023 2022 2023 2022 Ceded written premiums $ 40 $ 22 $ 82 $ 62 Ceded earned premiums 44 29 82 72 Ceded losses and LAE 19 23 32 60 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company is domiciled in the United States and has subsidiaries domiciled within the United States with significant branches in Canada and Singapore. The Company’s non-U.S. branches are subject to income taxation at varying rates in their respective domiciles. The Company generally applies the estimated annual effective tax rate (“AETR”) approach for calculating its tax provision for interim periods as prescribed by ASC 740-270, Interim Reporting. Under the estimated AETR approach, the estimated AETR is applied to the interim year-to-date pre-tax income/(loss) to determine the income tax expense or benefit for the year-to-date period. The tax expense or benefit for the quarter represents the difference between the year-to-date tax expense or benefit for the current year-to-date period less such amount for the immediately preceding year-to-date period. Management considers the impact of all known events in its estimation of the Company’s annual pre-tax income/(loss) and AETR. On August 16, 2022, the Inflation Reduction Act of 2022 (“IRA”) was enacted. We have evaluated the tax provisions of the IRA, the most significant of which are the corporate alternative minimum tax and the share repurchase excise tax and do not expect the legislation to have a material impact on our results of operations. As the IRS issues additional guidance, we will evaluate any impact to our consolidated financial statements. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSThe Company has evaluated known recognized and non-recognized subsequent events. The Company does not have any subsequent events to report. |
BASIS OF PRESENTATION (Policy)
BASIS OF PRESENTATION (Policy) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The unaudited consolidated financial statements of the Company as of June 30, 2023 and December 31, 2022 and for the three and six months ended June 30, 2023 and 2022 include all adjustments, consisting of normal recurring accruals, which, in the opinion of management, are necessary for a fair statement of the results on an interim basis. Certain financial information, which is normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), has been omitted since it is not required for interim reporting purposes. The December 31, 2022 consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The results for the three and six months ended June 30, 2023 and 2022 are not necessarily indicative of the results for a full year. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the years ended December 31, 2022, 2021 and 2020, included in the Company’s most recent Form 10-K filing. |
Voting and Variable Interest Entities | The Company consolidates the results of operations and financial position of all voting interest entities ("VOE") in which the Company has a controlling financial interest and all variable interest entities ("VIE") in which the Company is considered to be the primary beneficiary. The consolidation assessment, including the determination as to whether an entity qualifies as a VIE or VOE, depends on the facts and circumstances surrounding each entity. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities (and disclosure of contingent assets and liabilities) at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Ultimate actual results could differ, possibly materially, from those estimates. |
Consolidation | All intercompany accounts and transactions have been eliminated. |
Application of Recently Issued Accounting Standard Changes | The Company did not adopt any new accounting standards that had a material impact during the three and six months ended June 30, 2023. The Company assessed the adoption impacts of recently issued accounting standards by the Financial Accounting Standards Board (“FASB”) on the Company’s consolidated financial statements as well as material updates to previous assessments, if any, from the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. There were no accounting standards issued in the six months ended June 30, 2023, that are expected to have a material impact on Holdings. |
Fair Value of Financial Instruments | Equity securities denominated in U.S. currency with quoted prices in active markets for identical assets are categorized as Level 1 since the quoted prices are directly observable. Equity securities traded on foreign exchanges are categorized as Level 2 due to the added input of a foreign exchange conversion rate to determine fair value. The Company uses foreign currency exchange rates published by nationally recognized sources. Fixed maturity securities listed in the tables below are generally categorized as Level 2, since a particular security may not have traded but the pricing services are able to use valuation models with observable market inputs such as interest rate yield curves and prices for similar fixed maturity securities in terms of issuer, maturity and seniority. For foreign government securities and foreign corporate securities, the fair values are provided by the third party pricing services in local currencies, and where applicable, are converted to U.S. dollars using currency exchange rates from nationally recognized sources. In addition to the valuations from investment managers, some of the fixed maturities with fair values categorized as Level 3 result when prices are not available from the nationally recognized pricing services and are derived using unobservable inputs. The Company will value the securities with unobservable inputs using comparable market information or receive fair values from investment managers. The investment managers may obtain non-binding price quotes for the securities from brokers. The single broker quotes are provided by market makers or broker-dealers who are recognized as market participants in the markets in which they are providing the quotes. The prices received from brokers are reviewed for reasonableness by the third party asset managers and the Company. If the broker quotes are for foreign denominated securities, the quotes are converted to U.S. dollars using currency exchange rates from nationally recognized sources. The composition and valuation inputs for the presented fixed maturities categories Level 1 and Level 2 are as follows: • U.S. Treasury securities and obligations of U.S. government agencies and corporations are primarily comprised of U.S. Treasury bonds, and the fair value is based on observable market inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields; • Obligations of U.S. states and political subdivisions are comprised of state and municipal bond issuances, and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads; • Corporate securities are primarily comprised of U.S. corporate and public utility bond issuances, and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads; • Asset-backed and mortgage-backed securities fair values are based on observable inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields and cash flow models using observable inputs such as prepayment speeds, collateral performance and default spreads; • Foreign government securities are comprised of global non-U.S. sovereign bond issuances, and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source; • Foreign corporate securities are comprised of global non-U.S. corporate bond issuances, and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source. |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Cost, Allowance for Credit Losses, Gross Unrealized Appreciation/(Depreciation) and Fair Value of Fixed Maturity Securities | The tables below present the amortized cost, allowance for credit losses, gross unrealized appreciation/(depreciation) and fair value of fixed maturity securities - available for sale for the periods indicated: At June 30, 2023 (Dollars in millions) Amortized Allowances for Unrealized Unrealized Fair Fixed maturity securities – available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 475 $ — $ — $ (37) $ 439 Obligations of U.S. states and political subdivisions 424 — 1 (30) 395 Corporate securities 4,552 (55) 21 (309) 4,209 Asset-backed securities 4,783 — 5 (111) 4,676 Mortgage-backed securities Commercial 567 — — (63) 503 Agency residential 1,817 — 3 (166) 1,654 Non-agency residential 60 — — (1) 59 Foreign government securities 735 — 3 (53) 684 Foreign corporate securities 1,729 (1) 5 (149) 1,583 Total fixed maturity securities - available for sale $ 15,141 $ (57) $ 37 $ (919) $ 14,202 (Some amounts may not reconcile due to rounding.) At December 31, 2022 (Dollars in millions) Amortized Allowances for Unrealized Unrealized Fair Fixed maturity securities – available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 575 $ — $ — $ (40) $ 535 Obligations of U.S. states and political subdivisions 444 — 2 (32) 413 Corporate securities 3,913 (45) 14 (322) 3,561 Asset-backed securities 4,111 — 5 (165) 3,951 Mortgage-backed securities Commercial 569 — — (59) 509 Agency residential 1,792 — 3 (167) 1,628 Non-agency residential 3 — — — 3 Foreign government securities 696 — 2 (61) 637 Foreign corporate securities 1,597 (1) 4 (167) 1,433 Total fixed maturity securities - available for sale $ 13,699 $ (46) $ 30 $ (1,013) $ 12,671 (Some amounts may not reconcile due to rounding.) The following tables show amortized cost, allowance for credit losses, gross unrealized appreciation/(depreciation) and fair value of fixed maturity securities - held to maturity for the periods indicated: At June 30, 2023 (Dollars in millions) Amortized Allowances for Unrealized Unrealized Fair Fixed maturity securities – held to maturity Corporate securities $ 152 $ (2) $ — $ (6) $ 144 Asset-backed securities 603 (6) 2 (15) 585 Mortgage-backed securities Commercial 14 — — — 13 Foreign corporate securities 28 (1) 2 — 29 Total fixed maturity securities - held to maturity $ 796 $ (8) $ 4 $ (21) $ 771 (Some amounts may not reconcile due to rounding.) At December 31, 2022 (Dollars in millions) Amortized Allowances for Unrealized Unrealized Fair Fixed maturity securities – held to maturity Corporate securities $ 152 $ (2) $ — $ (6) $ 144 Asset-backed securities 634 (6) 2 (15) 614 Mortgage-backed securities Commercial 7 — — — 7 Foreign corporate securities 28 (1) 2 — 28 Total fixed maturity securities - held to maturity $ 820 $ (9) $ 3 $ (22) $ 793 (Some amounts may not reconcile due to rounding.) |
Summary of Amortized Cost and Market Value of Fixed Maturity Securities, by Contractual Maturity | The amortized cost and fair value of fixed maturity securities - available for sale are shown in the following table by contractual maturity. As the stated maturity of such securities may not be indicative of actual maturities, the totals for mortgage-backed and asset-backed securities are shown separately. At June 30, 2023 At December 31, 2022 (Dollars in millions) Amortized Fair Amortized Fair Fixed maturity securities – available for sale Due in one year or less $ 830 $ 799 $ 581 $ 563 Due after one year through five years 3,673 3,429 3,684 3,429 Due after five years through ten years 2,007 1,809 2,003 1,760 Due after ten years 1,404 1,273 958 827 Asset-backed securities 4,783 4,676 4,111 3,951 Mortgage-backed securities Commercial 567 503 569 509 Agency residential 1,817 1,654 1,792 1,628 Non-agency residential 60 59 3 3 Total fixed maturity securities - available for sale $ 15,141 $ 14,202 $ 13,699 $ 12,671 (Some amounts may not reconcile due to rounding.) The amortized cost and fair value of fixed maturity securities held to maturity - are shown in the following table by contractual maturity. As the stated maturity of such securities may not be indicative of actual maturities, the totals for mortgage-backed and asset-backed securities are shown separately. At June 30, 2023 At December 31, 2022 (Dollars in millions) Amortized Fair Amortized Fair Fixed maturity securities – held to maturity Due in one year or less $ 5 $ 5 $ 5 $ 5 Due after one year through five years 64 61 63 61 Due after five years through ten years 44 41 43 41 Due after ten years 68 65 68 65 Asset-backed securities 603 585 634 614 Mortgage-backed securities Commercial 14 13 7 7 Total fixed maturity securities - held to maturity $ 796 $ 771 $ 820 $ 793 (Some amounts may not reconcile due to rounding.) |
Summary of Changes in Net Unrealized Appreciation (Depreciation) for the Company's Investments | The changes in net unrealized appreciation (depreciation) for the Company’s investments are as follows: Three Months Ended Six Months Ended (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: Fixed maturity securities - available for sale and short-term investments $ (49) $ (512) $ 105 $ (1,008) Change in unrealized appreciation (depreciation), pre-tax (49) (512) 105 (1,008) Deferred tax benefit (expense) 10 107 (22) 211 Change in unrealized appreciation (depreciation), net of deferred taxes, included in stockholder's equity $ (38) $ (405) $ 83 $ (797) (Some amounts may not reconcile due to rounding.) |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value | The tables below display the aggregate fair value and gross unrealized depreciation of fixed maturity securities - available for sale, by security type and contractual maturity, in each case subdivided according to length of time that individual securities had been in a continuous unrealized loss position for the periods indicated: Duration of Unrealized Loss at June 30, 2023 By Security Type Less than 12 months Greater than 12 months Total (Dollars in millions) Fair Gross Fair Gross Fair Gross 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) Obligations of U.S. states and political subdivisions 77 (1) 199 (29) 276 (30) Corporate securities 1,135 (84) 2,128 (224) 3,263 (308) Asset-backed securities 1,058 (23) 2,426 (88) 3,484 (111) Mortgage-backed securities Commercial 17 (1) 480 (62) 497 (63) Agency residential 319 (5) 1,166 (160) 1,485 (166) Non-agency residential 57 (1) 3 — 59 (1) Foreign government securities 108 (2) 484 (51) 591 (53) Foreign corporate securities 293 (9) 1,112 (140) 1,405 (149) Total 3,092 (126) 8,406 (792) 11,498 (918) Securities where an allowance for credit loss was recorded — — — (1) 1 (1) Total fixed maturity securities - available for sale $ 3,093 $ (127) $ 8,406 $ (792) $ 11,499 $ (919) (Some amounts may not reconcile due to rounding.) The tables below display the aggregate fair value and gross unrealized depreciation of fixed maturity securities - available for sale, by security type and contractual maturity, in each case subdivided according to length of time that individual securities had been in a continuous unrealized loss position for the periods indicated: Duration of Unrealized Loss at December 31, 2022 By Security Type Less than 12 months Greater than 12 months Total (Dollars in millions) Fair Gross Fair Gross Fair Gross 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) Obligations of U.S. states and political subdivisions 235 (23) 27 (9) 261 (32) Corporate securities 2,138 (175) 841 (146) 2,979 (321) Asset-backed securities 3,120 (138) 436 (27) 3,556 (165) Mortgage-backed securities Commercial 464 (50) 36 (9) 500 (59) Agency residential 852 (54) 605 (113) 1,456 (167) Non-agency residential 2 — 1 — 3 — Foreign government securities 455 (36) 144 (25) 599 (61) Foreign corporate securities 967 (100) 365 (67) 1,332 (167) Total $ 8,522 $ (591) $ 2,698 $ (421) $ 11,220 $ (1,012) Securities where an allowance for credit loss was recorded 2 (1) — — 2 (1) Total fixed maturity securities - available for sale $ 8,524 $ (591) $ 2,698 $ (421) $ 11,222 $ (1,013) (Some amounts may not reconcile due to rounding.) |
Debt Securities, Available-for-Sale | Duration of Unrealized Loss at June 30, 2023 By Maturity Less than 12 months Greater than 12 months Total (Dollars in millions) Fair Gross Fair Gross Fair Gross Fixed maturity securities - available for sale Due in one year or less $ 214 $ (3) $ 473 $ (15) $ 687 $ (18) Due in one year through five years 533 (16) 2,413 (228) 2,946 (244) Due in five years through ten years 405 (16) 1,140 (186) 1,545 (203) Due after ten years 491 (60) 304 (52) 795 (112) Asset-backed securities 1,058 (23) 2,426 (88) 3,484 (111) Mortgage-backed securities 393 (7) 1,649 (223) 2,041 (230) Total 3,092 (126) 8,406 (792) 11,498 (918) Securities where an allowance for credit loss was recorded — — — (1) 1 (1) Total fixed maturity securities - available for sale $ 3,093 $ (127) $ 8,406 $ (792) $ 11,499 $ (919) (Some amounts may not reconcile due to rounding.) Duration of Unrealized Loss at December 31, 2022 By Maturity Less than 12 months Greater than 12 months Total (Dollars in millions) Fair Gross Fair Gross Fair Gross Fixed maturity securities - available for sale Due in one year or less $ 463 $ (8) $ 29 $ (4) $ 491 $ (11) Due in one year through five years 2,020 (143) 936 (107) 2,956 (250) Due in five years through ten years 1,162 (148) 395 (98) 1,557 (246) Due after ten years 439 (50) 262 (64) 701 (114) Asset-backed securities 3,120 (138) 436 (27) 3,556 (165) Mortgage-backed securities 1,318 (105) 641 (122) 1,959 (226) Total $ 8,522 $ (591) $ 2,698 $ (421) $ 11,220 $ (1,012) Securities where an allowance for credit loss was recorded 2 (1) — — 2 (1) Total fixed maturity securities - available for sale $ 8,524 $ (591) $ 2,698 $ (421) $ 11,222 $ (1,013) (Some amounts may not reconcile due to rounding.) |
Summary of Components of Net Investment Income | The components of net investment income are presented in the table below for the periods indicated: Three Months Ended Six Months Ended (Dollars in millions) 2023 2022 2023 2022 Fixed maturities $ 199 $ 116 $ 374 $ 210 Equity securities 1 5 2 9 Short-term investments and cash 16 1 27 1 Other invested assets Limited partnerships 22 45 (1) 89 Dividends from preferred shares of affiliate 8 8 16 16 Other 6 14 27 26 Gross investment income before adjustments 252 188 444 350 Funds held interest income (expense) (1) 1 1 3 Interest income from Group 3 2 7 4 Gross investment income 253 190 453 357 Investment expenses (11) (14) (21) (24) Net investment income $ 242 $ 176 $ 432 $ 333 (Some amounts may not reconcile due to rounding.) |
Summary of Components of Net Realized Capital Gains (Losses) | The components of net gains (losses) on investments are presented in the table below for the periods indicated: Three Months Ended Six Months Ended (Dollars in millions) 2023 2022 2023 2022 Fixed maturity securities Allowances for credit losses $ — $ 2 $ (10) $ — Net realized gains (losses) from dispositions (7) (10) (9) (15) Equity securities, fair value Net realized gains (losses) from dispositions — (30) 7 (38) Gains (losses) from fair value adjustments 8 (186) 11 (317) Other invested assets — 1 — 5 Other invested assets, fair value Gains (losses) from fair value adjustments (23) (155) 1 (239) Total net gains (losses) on investments $ (22) $ (378) $ — $ (605) (Some amounts may not reconcile due to rounding.) |
Debt Securities, Available-for-Sale, Allowance for Credit Loss | The following tables provide a roll forward of the Company’s beginning and ending balance of allowance for credit losses for the periods indicated: Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Corporate Asset Backed Foreign Total Corporate Asset Foreign Total (Dollars in millions) Beginning balance $ (55) $ — $ (1) $ (56) $ (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 — — — — — — — — Reduction in allowance due to disposals 1 — — 1 4 — — 4 Balance, end of period $ (55) $ — $ (1) $ (57) $ (55) $ — $ (1) $ (57) (Some amounts may not reconcile due to rounding.) Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 (Dollars in millions) Corporate Asset Foreign Total Corporate Asset Foreign Total Beginning balance $ (20) $ (8) $ (1) $ (29) $ (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 — — — — — — — — Reduction in allowance due to disposals — 8 — 8 1 8 — 9 Balance, end of period $ (26) $ — $ (2) $ (27) $ (26) $ — $ (2) $ (27) (Some amounts may not reconcile due to rounding.) |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Corporate Asset Backed Foreign Total Corporate Asset Foreign Total (Dollars in millions) Beginning balance $ (2) $ (6) $ (1) $ (9) $ (2) $ (6) $ (1) $ (9) Credit losses on securities where credit losses were not previously recorded — — — — — — — — Increases in allowance on previously impaired securities — — — — — — — — Decreases in allowance on previously impaired securities — — — — — — — — Reduction in allowance due to disposals — — — — — — — — Balance, end of period $ (2) $ (6) $ (1) $ (8) $ (2) $ (6) $ (1) $ (8) (Some amounts may not reconcile due to rounding.) |
Summary of Gross Gains (Losses) from Sales of Fixed Maturity and Equity Securities | The proceeds and split between gross gains and losses from dispositions of fixed maturity and equity securities are presented in the table below for the periods indicated: Three Months Ended Six Months Ended (Dollars in millions) 2023 2022 2023 2022 Proceeds from sales of fixed maturity securities - available for sale $ 59 $ 245 $ 109 $ 511 Gross gains from dispositions 1 3 4 6 Gross losses from dispositions (8) (13) (12) (21) Proceeds from sales of equity securities $ — $ 343 $ 46 $ 425 Gross gains from dispositions — 4 7 8 Gross losses from dispositions — (34) — (46) (Some amounts may not reconcile due to rounding.) |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement Levels for all Assets, Recorded at Fair and Market Value | The following tables present the fair value measurement levels for all assets, which the Company has recorded at fair value as of the periods indicated: Fair Value Measurement Using (Dollars in millions) June 30, 2023 Quoted Prices Significant Significant Assets: Fixed maturities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 439 $ — $ 439 $ — Obligations of U.S. states and political subdivisions 395 — 395 — Corporate securities 4,209 — 3,498 711 Asset-backed securities 4,676 — 3,561 1,115 Mortgage-backed securities Commercial 503 — 503 — Agency residential 1,654 — 1,654 — Non-agency residential 59 — 59 — Foreign government securities 684 — 684 — Foreign corporate securities 1,583 — 1,567 16 Total fixed maturities - available for sale 14,202 — 12,360 1,842 Equity securities, fair value 167 145 22 — Other invested assets, fair value 1,474 — — 1,474 (Some amounts may not reconcile due to rounding.) Fair Value Measurement Using (Dollars in millions) December 31, 2022 Quoted Prices Significant Significant Assets: Fixed maturities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 535 $ — $ 535 $ — Obligations of U.S. states and political subdivisions 413 — 413 — Corporate securities 3,561 — 2,846 715 Asset-backed securities 3,951 — 2,957 994 Mortgage-backed securities Commercial 509 — 509 — Agency residential 1,628 — 1,628 — Non-agency residential 3 — 3 — Foreign government securities 637 — 637 — Foreign corporate securities 1,433 — 1,417 16 Total fixed maturities - available for sale 12,671 — 10,946 1,725 Equity securities, fair value 194 132 63 — Other invested assets, fair value 1,472 — — 1,472 (Some amounts may not reconcile due to rounding.) |
Activity Under Level 3, Fair Value Measurements Using Significant Unobservable Inputs by Asset Type | The following tables present the activity under Level 3, fair value measurements using significant unobservable inputs for fixed maturities - available for sale, for the periods indicated: Total Fixed Maturities - Available for Sale Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 (Dollars in millions) Corporate Asset Backed Foreign Total Corporate Asset Backed Foreign Total Beginning balance of fixed maturities $ 709 $ 1,020 $ 16 $ 1,745 $ 715 $ 994 $ 16 $ 1,725 Total gains or (losses) (realized/unrealized) Included in earnings 1 — — 1 2 — — 2 Included in other comprehensive income (loss) (2) (8) — (9) (6) 10 — 4 Purchases, issuances and settlements 3 103 — 105 — 111 — 111 Transfers in (out) of Level 3 and reclassification of securities in/(out) investment categories — — — — — — — — Ending balance of fixed maturities $ 711 $ 1,115 $ 16 $ 1,842 $ 711 $ 1,115 $ 16 $ 1,842 The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date $ — $ — $ — $ — $ — $ — $ — $ — (Some amounts may not reconcile due to rounding.) Total Fixed Maturities - Available for Sale Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 (Dollars in millions) Corporate Asset Backed CMBS Foreign Total Corporate Asset Backed CMBS Foreign 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 (Some amounts may not reconcile due to rounding.) |
RESERVES FOR LOSSES, LAE AND _2
RESERVES FOR LOSSES, LAE AND FUTURE POLICY BENEFIT RESERVE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Summary of Activity in the Reserve for Losses And LAE | Activity in the reserve for losses and loss adjustment expenses (“LAE”) is summarized for the periods indicated: Six Months Ended (Dollars in millions) 2023 2022 Gross reserves beginning of period $ 14,977 $ 13,121 Less reinsurance recoverables on unpaid losses (3,684) (3,651) Net reserves beginning of period 11,294 9,470 Incurred related to: Current year 2,720 2,521 Prior years (1) 9 Total incurred losses and LAE 2,719 2,530 Paid related to: Current year 937 775 Prior years 1,019 1,063 Total paid losses and LAE 1,956 1,838 Foreign exchange/translation adjustment 15 (17) Net reserves end of period 12,072 10,145 Plus reinsurance recoverables on unpaid losses 3,440 3,593 Gross reserves end of period $ 15,512 $ 13,738 (Some amounts may not reconcile due to rounding.) |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Underwriting Results for Operating Segments | The following tables present the underwriting results for the operating segments for the periods indicated: Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 (Dollars in millions) Reinsurance Insurance Total Reinsurance Insurance Total Gross written premiums $ 1,791 $ 1,125 $ 2,915 $ 3,434 $ 1,977 $ 5,411 Net written premiums 1,580 816 2,396 2,953 1,506 4,459 Premiums earned $ 1,417 $ 714 $ 2,131 $ 2,784 $ 1,416 $ 4,200 Incurred losses and LAE 864 460 1,325 1,794 925 2,719 Commission and brokerage 363 70 433 724 145 869 Other underwriting expenses 36 100 136 75 200 275 Underwriting gain (loss) $ 153 $ 84 $ 237 $ 191 $ 145 $ 336 Net investment income 242 432 Net gains (losses) on investments (22) — Corporate expense (4) (10) Interest, fee and bond issue cost amortization expense (33) (65) Other income (expense) (10) (15) Income (loss) before taxes $ 411 $ 679 (Some amounts may not reconcile due to rounding) Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 (Dollars in millions) Reinsurance Insurance Total Reinsurance Insurance Total Gross written premiums $ 1,394 $ 1,043 $ 2,437 $ 2,774 $ 1,868 $ 4,642 Net written premiums 1,245 750 1,995 2,430 1,360 3,791 Premiums earned $ 1,295 $ 659 $ 1,954 $ 2,504 $ 1,279 $ 3,783 Incurred losses and LAE 875 429 1,304 1,696 834 2,530 Commission and brokerage 332 77 409 647 146 793 Other underwriting expenses 32 88 120 63 175 238 Underwriting gain (loss) $ 55 $ 66 $ 121 $ 98 $ 124 $ 222 Net investment income 176 333 Net gains (losses) on investments (378) (605) Corporate expense (6) (12) Interest, fee and bond issue cost amortization expense (24) (48) Other income (expense) — (9) Income (loss) before taxes $ (110) $ (119) (Some amounts may not reconcile due to rounding) |
SENIOR NOTES (Tables)
SENIOR NOTES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Senior Notes [Abstract] | |
Schedule of Outstanding Senior Notes | The table below displays Holdings’ outstanding senior notes. Fair value is based on quoted market prices, but due to limited trading activity, these senior notes are considered Level 2 in the fair value hierarchy. June 30, 2023 December 31, 2022 (Dollars in millions) Date Issued Date Due Principal Consolidated Fair Consolidated Fair 4.868% Senior notes 6/5/2014 6/1/2044 400 $ 397 $ 360 $ 397 $ 343 3.5% Senior notes 10/7/2020 10/15/2050 1,000 981 714 981 677 3.125% Senior notes 10/4/2021 10/15/2052 1,000 970 664 969 627 2,400 $ 2,348 $ 1,738 $ 2,347 $ 1,647 (Some amounts may not reconcile due to rounding.) |
Schedule of Interest Expense Incurred in Connection with Senior Notes | Interest expense incurred in connection with these senior notes is as follows for the periods indicated: Three Months Ended Six Months Ended (Dollars in millions) Interest Paid Payable Dates 2023 2022 2023 2022 4.868% Senior notes semi-annually June 1/December 1 $ 5 $ 5 $ 10 $ 10 3.5% Senior notes semi-annually April 15/October 15 9 9 18 18 3.125% Senior notes semi-annually April 15/October 15 8 8 16 16 $ 22 $ 22 $ 43 $ 43 (Some amounts may not reconcile due to rounding.) |
LONG-TERM SUBORDINATED NOTES (T
LONG-TERM SUBORDINATED NOTES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Long-Term Debt, Unclassified [Abstract] | |
Schedule of Outstanding Fixed to Floating Rate Long Term Subordinated Notes | The table below displays Holdings’ outstanding fixed to floating rate long-term subordinated notes (“Subordinated Notes Issued 2007”). Fair value is based on quoted market prices, but due to limited trading activity, these subordinated notes are considered Level 2 in the fair value hierarchy. June 30, 2023 December 31, 2022 Original Maturity Date Consolidated Fair Consolidated Fair (Dollars in millions) Date Issued Scheduled Final Long-term subordinated notes 4/26/2007 $ 400 5/15/2037 5/1/2067 $ 218 $ 187 $ 218 $ 187 |
Schedule of Interest Expense Incurred in Connection with Long Term Subordinated Notes | Interest expense incurred in connection with these long-term subordinated notes is as follows for the periods indicated: Three Months Ended Six Months Ended (Dollars in millions) 2023 2022 2023 2022 Interest expense incurred $ 4 $ 2 $ 8 $ 3 |
COLLATERALIZED REINSURANCE AN_2
COLLATERALIZED REINSURANCE AND TRUST AGREEMENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Collateralized Reinsurance And Trust Agreements [Abstract] | |
Summary of Collateralized Reinsurance Agreements | The table below summarizes the various agreements: (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 June 30, 2023 $ 1,800 |
OTHER COMPREHENSIVE INCOME (L_2
OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other Comprehensive Income (Loss), Tax [Abstract] | |
Components of Comprehensive Income (Loss) in the Consolidated Statements of Operations | The following tables present the components of comprehensive income (loss) in the consolidated statements of operations for the periods indicated: Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 (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 Reclassification of net realized losses (gains) included in net income (loss) 8 (2) 6 19 (4) 15 Foreign currency translation adjustments (5) 1 (4) 3 (1) 2 Reclassification of amortization of net gain (loss) included in net income (loss) 1 — — 1 — 1 Total other comprehensive income (loss) $ (53) $ 11 $ (42) $ 109 $ (23) $ 86 (Some amounts may not reconcile due to rounding) Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 (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) Reclassification of net realized losses (gains) included in net income (loss) 8 (2) 6 11 (2) 8 Foreign currency translation adjustments (12) 3 (10) (15) 3 (12) Reclassification of amortization of net gain (loss) included in net income (loss) 1 — 1 2 — 2 Total other comprehensive income (loss) $ (524) $ 110 $ (414) $ (1,021) $ 214 $ (807) (Some amounts may not reconcile due to rounding) |
Reclassification from Accumulated Other Comprehensive Income | The following table presents details of the amounts reclassified from AOCI for the periods indicated: Three Months Ended Six Months Ended Affected line item within the AOCI component 2023 2022 2023 2022 (Dollars in millions) URA(D) on securities $ 8 $ 8 $ 19 $ 11 Other net gains (losses) on investments (2) (2) (4) (2) Income tax expense (benefit) $ 6 $ 6 $ 15 $ 8 Net income (loss) Benefit plan net gain (loss) $ 1 $ 1 $ 1 $ 2 Other underwriting expenses — — — — Income tax expense (benefit) $ — $ 1 $ 1 $ 2 Net income (loss) (Some amounts may not reconcile due to rounding) |
Components of Accumulated Other Comprehensive Income (Loss), Net of Tax, in the Consolidated Balance Sheets | The following table presents the components of accumulated other comprehensive income (loss), net of tax, in the consolidated balance sheets for the periods indicated: Three Months Ended Six Months Ended (Dollars in millions) 2023 2022 2023 2022 Beginning balance of URA(D) on securities $ (695) $ (270) $ (816) $ 122 Current period change in URA(D) of investments - non-credit related (38) (405) 83 (797) Ending balance of URA(D) on securities (734) (675) (734) (675) Beginning balance of foreign currency translation adjustments 8 18 2 20 Current period change in foreign currency translation adjustments (4) (10) 2 (12) Ending balance of foreign currency translation adjustments 4 8 4 8 Beginning balance of benefit plan net gain (loss) (33) (50) (33) (51) Current period change in benefit plan net gain (loss) — 1 1 2 Ending balance of benefit plan net gain (loss) (32) (49) (32) (49) Ending balance of accumulated other comprehensive income (loss) $ (762) $ (716) $ (762) $ (716) (Some amounts may not reconcile due to rounding.) |
RELATED-PARTY TRANSACTIONS (Tab
RELATED-PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Schedule Of Related-Party Long-Term Notes | Fair value of these long-term notes is considered Level 2 in the fair value hierarchy. June 30, 2023 December 31, 2022 (Dollars in millions) Date Issued Date Due Principal Consolidated Fair Consolidated Fair 1.69% Long-term Note 12/17/2019 12/17/2028 300 $ — $ — $ 300 $ 242 1.00% Long-term Note 8/5/2021 8/5/2030 200 — — 200 151 3.11% Long-term Note 6/14/2022 6/14/2052 215 — — 215 171 4.34%Long-term Note 12/12/2022 12/12/2052 125 — — 125 125 840 $ — $ — $ 840 $ 689 (Some amounts may not reconcile due to rounding) |
Schedule Of Related Party Interest Income | Interest income recognized in connection with these long-term notes is as follows for the periods indicated: Three Months Ended Six Months Ended (Dollars in millions) Interest Received Receivable Dates 2023 2022 2023 2022 1.69% Long-term Note annually December 17 $ 1 $ 1 $ 2 $ 3 1.00% Long-term Note annually August 5 — 1 1 1 3.11% Long-term Note annually June 14 1 — 3 — 4.34% Long-term Note annually December 12 1 — 2 — $ 3 $ 2 $ 7 $ 4 (Some amounts may not reconcile due to rounding) |
Dividends Received On Preferred Shares | The following table presents the dividends received on the preferred shares of Preferred Holdings that are reported as net investment income in the consolidated statements of operations and comprehensive income (loss) for the period indicated: Three Months Ended Six Months Ended (Dollars in millions) 2023 2022 2023 2022 Dividends received on preferred stock of affiliate $ 8 $ 8 $ 16 $ 16 |
Affiliated Quota Share Reinsurance Agreements For All New And Renewal Business For The Indicated Coverage Period | The table below represents affiliated quota share reinsurance agreements for all new and renewal business for the indicated coverage period: (Dollars in millions) Coverage Period Ceding Company Percent Ceded Assuming Company Type of Business Single Occurrence Limit Aggregate Limit 01/01/2010-12/31/2010 Everest Re 44.0 % Bermuda Re property / casualty business 150 325 01/01/2011-12/31/2011 Everest Re 50.0 % Bermuda Re property / casualty business 150 300 01/01/2012-12/31/2014 Everest Re 50.0 % Bermuda Re property / casualty business 100 200 01/01/2015-12/31/2016 Everest Re 50.0 % Bermuda Re property / casualty business 163 325 01/01/2017-12/31/2017 Everest Re 60.0 % Bermuda Re property / casualty business 219 438 01/01/2010-12/31/2010 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 Everest Re- Canadian Branch 75.0 % Bermuda Re property / casualty business 206 (1) 413 (1) 01/01/2013-12/31/2013 Everest Re- Canadian Branch 75.0 % Bermuda Re property / casualty business 150 (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 Everest Canada 80.0 % Everest Re- Canadian Branch property business — — 01/01/2020 Everest International Assurance 100.0 % Bermuda Re life business — — (1) Amounts shown are Canadian dollars. |
Schedule Of Loss Portfolio Transfer Reinsurance Agreements, Net Insurance Exposures And Reserves Were Transferred To An Affiliate | The table below represents loss portfolio transfer (“LPT”) reinsurance agreements whereby net insurance exposures and reserves were transferred to an affiliate. (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 |
Premiums And Losses Ceded By The Company To Affiliate | The following tables summarize the significant premiums and losses ceded and assumed by the Company to affiliated entities: Bermuda Re Three Months Ended Six Months Ended (Dollars in millions) 2023 2022 2023 2022 Ceded written premiums $ 107 $ 91 $ 214 $ 184 Ceded earned premiums 107 91 213 184 Ceded losses and LAE (5) 3 (9) 1 Assumed written premiums 4 1 4 3 Assumed earned premiums 3 1 3 5 Assumed losses and LAE — — — — Ireland Re Three Months Ended Six Months Ended (Dollars in millions) 2023 2022 2023 2022 Assumed written premiums $ 3 $ 2 $ 6 $ 4 Assumed earned premiums 3 2 6 5 Assumed losses and LAE 1 — 1 2 Ireland Insurance Three Months Ended Six Months Ended (Dollars in millions) 2023 2022 2023 2022 Assumed written premiums $ 11 $ 2 $ 12 $ 4 Assumed earned premiums 8 2 10 4 Assumed losses and LAE 2 (5) 4 2 The following table summarizes the premiums and losses that are ceded by the Company to Mt. Logan Re segregated accounts: Mt. Logan Re Segregated Accounts Three Months Ended Six Months Ended (Dollars in millions) 2023 2022 2023 2022 Ceded written premiums $ 40 $ 22 $ 82 $ 62 Ceded earned premiums 44 29 82 72 Ceded losses and LAE 19 23 32 60 |
INVESTMENTS - Summary of Amorti
INVESTMENTS - Summary of Amortized Cost, Allowance for Credit Losses, Gross Unrealized Appreciation/(Depreciation) and Fair Value of Fixed Maturity Securities (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Fixed maturity securities – available for sale | ||||||
Amortized Cost | $ 15,141 | $ 13,699 | ||||
Allowances for Credit Losses | (57) | $ (56) | (46) | $ (27) | $ (29) | $ (27) |
Unrealized Appreciation | 37 | 30 | ||||
Unrealized Depreciation | (919) | (1,013) | ||||
Fair Value | 14,202 | 12,671 | ||||
Fixed maturity securities – held to maturity | ||||||
Amortized Cost | 796 | 820 | ||||
Allowances for Credit Loss | (8) | (9) | (9) | |||
Unrealized Appreciation | 4 | 3 | ||||
Unrealized Depreciation | (21) | (22) | ||||
Fair Value | 771 | 793 | ||||
U.S. Treasury securities and obligations of U.S. government agencies and corporations | ||||||
Fixed maturity securities – available for sale | ||||||
Amortized Cost | 475 | 575 | ||||
Allowances for Credit Losses | 0 | 0 | ||||
Unrealized Appreciation | 0 | 0 | ||||
Unrealized Depreciation | (37) | (40) | ||||
Fair Value | 439 | 535 | ||||
Obligations of U.S. states and political subdivisions | ||||||
Fixed maturity securities – available for sale | ||||||
Amortized Cost | 424 | 444 | ||||
Allowances for Credit Losses | 0 | 0 | ||||
Unrealized Appreciation | 1 | 2 | ||||
Unrealized Depreciation | (30) | (32) | ||||
Fair Value | 395 | 413 | ||||
Corporate Securities | ||||||
Fixed maturity securities – available for sale | ||||||
Amortized Cost | 4,552 | 3,913 | ||||
Allowances for Credit Losses | (55) | (55) | (45) | (26) | (20) | (19) |
Unrealized Appreciation | 21 | 14 | ||||
Unrealized Depreciation | (309) | (322) | ||||
Fair Value | 4,209 | 3,561 | ||||
Fixed maturity securities – held to maturity | ||||||
Amortized Cost | 152 | 152 | ||||
Allowances for Credit Loss | (2) | (2) | (2) | |||
Unrealized Appreciation | 0 | 0 | ||||
Unrealized Depreciation | (6) | (6) | ||||
Fair Value | 144 | 144 | ||||
Asset Backed Securities | ||||||
Fixed maturity securities – available for sale | ||||||
Amortized Cost | 4,783 | 4,111 | ||||
Allowances for Credit Losses | 0 | 0 | 0 | 0 | (8) | (8) |
Unrealized Appreciation | 5 | 5 | ||||
Unrealized Depreciation | (111) | (165) | ||||
Fair Value | 4,676 | 3,951 | ||||
Fixed maturity securities – held to maturity | ||||||
Amortized Cost | 603 | 634 | ||||
Allowances for Credit Loss | (6) | (6) | (6) | |||
Unrealized Appreciation | 2 | 2 | ||||
Unrealized Depreciation | (15) | (15) | ||||
Fair Value | 585 | 614 | ||||
Commercial | ||||||
Fixed maturity securities – available for sale | ||||||
Amortized Cost | 567 | 569 | ||||
Allowances for Credit Losses | 0 | 0 | ||||
Unrealized Appreciation | 0 | 0 | ||||
Unrealized Depreciation | (63) | (59) | ||||
Fair Value | 503 | 509 | ||||
Fixed maturity securities – held to maturity | ||||||
Amortized Cost | 14 | 7 | ||||
Allowances for Credit Loss | 0 | 0 | ||||
Unrealized Appreciation | 0 | 0 | ||||
Unrealized Depreciation | 0 | 0 | ||||
Fair Value | 13 | 7 | ||||
Agency residential | ||||||
Fixed maturity securities – available for sale | ||||||
Amortized Cost | 1,817 | 1,792 | ||||
Allowances for Credit Losses | 0 | 0 | ||||
Unrealized Appreciation | 3 | 3 | ||||
Unrealized Depreciation | (166) | (167) | ||||
Fair Value | 1,654 | 1,628 | ||||
Non-agency residential | ||||||
Fixed maturity securities – available for sale | ||||||
Amortized Cost | 60 | 3 | ||||
Allowances for Credit Losses | 0 | 0 | ||||
Unrealized Appreciation | 0 | 0 | ||||
Unrealized Depreciation | (1) | 0 | ||||
Fair Value | 59 | 3 | ||||
Foreign government securities | ||||||
Fixed maturity securities – available for sale | ||||||
Amortized Cost | 735 | 696 | ||||
Allowances for Credit Losses | 0 | 0 | ||||
Unrealized Appreciation | 3 | 2 | ||||
Unrealized Depreciation | (53) | (61) | ||||
Fair Value | 684 | 637 | ||||
Foreign Corporate | ||||||
Fixed maturity securities – available for sale | ||||||
Amortized Cost | 1,729 | 1,597 | ||||
Allowances for Credit Losses | (1) | (1) | (1) | $ (2) | $ (1) | $ 0 |
Unrealized Appreciation | 5 | 4 | ||||
Unrealized Depreciation | (149) | (167) | ||||
Fair Value | 1,583 | 1,433 | ||||
Fixed maturity securities – held to maturity | ||||||
Amortized Cost | 28 | 28 | ||||
Allowances for Credit Loss | (1) | $ (1) | (1) | |||
Unrealized Appreciation | 2 | 2 | ||||
Unrealized Depreciation | 0 | 0 | ||||
Fair Value | $ 29 | $ 28 |
INVESTMENTS - Summary of Amor_2
INVESTMENTS - Summary of Amortized Cost and Fair Value of Fixed Maturity Securities, by Contractual Maturity (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due in one year or less | $ 830 | $ 581 |
Due after one year through five years | 3,673 | 3,684 |
Due after five years through ten years | 2,007 | 2,003 |
Due after ten years | 1,404 | 958 |
Amortized Cost | 15,141 | 13,699 |
Fair Value | ||
Due in one year or less | 799 | 563 |
Due after one year through five years | 3,429 | 3,429 |
Due after five years through ten years | 1,809 | 1,760 |
Due after ten years | 1,273 | 827 |
Fair Value | 14,202 | 12,671 |
Amortized Cost | ||
Due in one year or less | 5 | 5 |
Due after one year through five years | 64 | 63 |
Due after five years through ten years | 44 | 43 |
Due after ten years | 68 | 68 |
Amortized Cost | 796 | 820 |
Fair Value | ||
Due in one year or less | 5 | 5 |
Due after one year through five years | 61 | 61 |
Due after five years through ten years | 41 | 41 |
Due after ten years | 65 | 65 |
Fair Value | 771 | 793 |
Asset Backed Securities | ||
Amortized Cost | ||
Amortized Cost | 4,783 | 4,111 |
Fair Value | ||
Fair Value | 4,676 | 3,951 |
Amortized Cost | ||
Amortized Cost | 603 | 634 |
Fair Value | ||
Fair Value | 585 | 614 |
Commercial | ||
Amortized Cost | ||
Amortized Cost | 567 | 569 |
Fair Value | ||
Fair Value | 503 | 509 |
Amortized Cost | ||
Amortized Cost | 14 | 7 |
Fair Value | ||
Fair Value | 13 | 7 |
Agency residential | ||
Amortized Cost | ||
Amortized Cost | 1,817 | 1,792 |
Fair Value | ||
Fair Value | 1,654 | 1,628 |
Non-agency residential | ||
Amortized Cost | ||
Amortized Cost | 60 | 3 |
Fair Value | ||
Fair Value | $ 59 | $ 3 |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 USD ($) security | Sep. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) security | |
Debt Securities, Available-for-Sale [Line Items] | ||||
Reclassification of specific investments from fixed maturity securities, available for sale at fair value to fixed maturity securities, held to maturity at amortized cost net of credit allowances | $ 722 | |||
Unrealized loss from transfer | $ (762) | $ (762) | $ (848) | |
Fair value of investments in unrealized loss position | 11,499 | 11,499 | 11,222 | |
Gross unrealized losses on investments in unrealized loss position | 919 | 919 | 1,013 | |
Fixed maturity securities, duration of unrealized loss, less than 12 months, gross unrealized depreciation | 127 | 127 | 591 | |
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation | 792 | 792 | 421 | |
Additional contractual commitments | 925 | 925 | ||
Cash surrender value of life insurance | 968 | 968 | 939 | |
Fair Value | $ 14,202 | 14,202 | $ 12,671 | |
Number of securities held as primary beneficiary | security | 0 | 0 | ||
Variable Interest Entity, Not Primary Beneficiary | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Maximum exposure to loss | $ 2,900 | 2,900 | $ 2,800 | |
Commitments to fund investments | 871 | $ 871 | ||
Investments, Debt Securities Benchmark | Issuer Concentration Risk | Issuer One | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Percentage of overall fair value of fixed maturity securities available for sale, less than | 3.10% | 4.30% | ||
Investments, Debt Securities Benchmark | Issuer Concentration Risk | Issuer Two | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Percentage of overall fair value of fixed maturity securities available for sale, less than | 1.90% | 0.60% | ||
Investment Grade | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Fixed maturity securities, duration of unrealized loss, less than 12 months, gross unrealized depreciation | 98 | $ 98 | $ 520 | |
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation | 738 | 738 | 392 | |
Fixed maturities | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Fixed maturity securities, duration of unrealized loss, less than 12 months, gross unrealized depreciation | 591 | |||
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation | 792 | 792 | 421 | |
Fair Value | 1,800 | 1,800 | $ 1,700 | |
Private Placement Liquidity Sweep | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Fair Value | 449 | 449 | ||
Debt Securities, Held To Maturity | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Unrealized loss from transfer | $ 46 | $ 46 |
INVESTMENTS - Summary of Change
INVESTMENTS - Summary of Changes in Net Unrealized Appreciation (Depreciation) for the Company's Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Change in unrealized appreciation (depreciation), pre-tax | $ (49) | $ (512) | $ 105 | $ (1,008) |
Deferred tax benefit (expense) | 10 | 107 | (22) | 211 |
Total URA(D) on securities arising during the period | $ (38) | $ (405) | $ 83 | $ (797) |
INVESTMENTS - Summary of Aggreg
INVESTMENTS - Summary of Aggregate Market Value and Gross Unrealized Depreciation of Fixed Maturity and Equity Securities, by Security Type (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value | ||
Less than 12 months | $ 3,093 | $ 8,524 |
Greater than 12 months | 8,406 | 2,698 |
Total | 11,499 | 11,222 |
Gross Unrealized Depreciation | ||
Less than 12 months | (127) | (591) |
Greater than 12 months | (792) | (421) |
Total | (919) | (1,013) |
No Recorded Allowance for Credit Losses | ||
Fair Value | ||
Less than 12 months | 3,092 | 8,522 |
Greater than 12 months | 8,406 | 2,698 |
Total | 11,498 | 11,220 |
Gross Unrealized Depreciation | ||
Less than 12 months | (126) | (591) |
Greater than 12 months | (792) | (421) |
Total | (918) | (1,012) |
U.S. Treasury securities and obligations of U.S. government agencies and corporations | ||
Fair Value | ||
Less than 12 months | 30 | 290 |
Greater than 12 months | 408 | 245 |
Total | 438 | 535 |
Gross Unrealized Depreciation | ||
Less than 12 months | (1) | (14) |
Greater than 12 months | (36) | (26) |
Total | (37) | (40) |
Obligations of U.S. states and political subdivisions | ||
Fair Value | ||
Less than 12 months | 77 | 235 |
Greater than 12 months | 199 | 27 |
Total | 276 | 261 |
Gross Unrealized Depreciation | ||
Less than 12 months | (1) | (23) |
Greater than 12 months | (29) | (9) |
Total | (30) | (32) |
Corporate Securities | ||
Fair Value | ||
Less than 12 months | 1,135 | 2,138 |
Greater than 12 months | 2,128 | 841 |
Total | 3,263 | 2,979 |
Gross Unrealized Depreciation | ||
Less than 12 months | (84) | (175) |
Greater than 12 months | (224) | (146) |
Total | (308) | (321) |
Asset Backed Securities | ||
Fair Value | ||
Less than 12 months | 1,058 | 3,120 |
Greater than 12 months | 2,426 | 436 |
Total | 3,484 | 3,556 |
Gross Unrealized Depreciation | ||
Less than 12 months | (23) | (138) |
Greater than 12 months | (88) | (27) |
Total | (111) | (165) |
Commercial | ||
Fair Value | ||
Less than 12 months | 17 | 464 |
Greater than 12 months | 480 | 36 |
Total | 497 | 500 |
Gross Unrealized Depreciation | ||
Less than 12 months | (1) | (50) |
Greater than 12 months | (62) | (9) |
Total | (63) | (59) |
Agency residential | ||
Fair Value | ||
Less than 12 months | 319 | 852 |
Greater than 12 months | 1,166 | 605 |
Total | 1,485 | 1,456 |
Gross Unrealized Depreciation | ||
Less than 12 months | (5) | (54) |
Greater than 12 months | (160) | (113) |
Total | (166) | (167) |
Non-agency residential | ||
Fair Value | ||
Less than 12 months | 57 | 2 |
Greater than 12 months | 3 | 1 |
Total | 59 | 3 |
Gross Unrealized Depreciation | ||
Less than 12 months | (1) | 0 |
Greater than 12 months | 0 | 0 |
Total | (1) | 0 |
Foreign government securities | ||
Fair Value | ||
Less than 12 months | 108 | 455 |
Greater than 12 months | 484 | 144 |
Total | 591 | 599 |
Gross Unrealized Depreciation | ||
Less than 12 months | (2) | (36) |
Greater than 12 months | (51) | (25) |
Total | (53) | (61) |
Foreign Corporate | ||
Fair Value | ||
Less than 12 months | 293 | 967 |
Greater than 12 months | 1,112 | 365 |
Total | 1,405 | 1,332 |
Gross Unrealized Depreciation | ||
Less than 12 months | (9) | (100) |
Greater than 12 months | (140) | (67) |
Total | (149) | (167) |
Securities where an allowance for credit loss was recorded | ||
Fair Value | ||
Less than 12 months | 0 | 2 |
Greater than 12 months | 0 | 0 |
Total | 1 | 2 |
Gross Unrealized Depreciation | ||
Less than 12 months | 0 | (1) |
Greater than 12 months | (1) | 0 |
Total | $ (1) | $ (1) |
INVESTMENTS - Summary of Aggr_2
INVESTMENTS - Summary of Aggregate Market Value and Gross Unrealized Depreciation of Fixed Maturity and Equity Securities, by Contractual Maturity (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value | ||
Less than 12 months | $ 3,093 | $ 8,524 |
Greater than 12 months | 8,406 | 2,698 |
Total | 11,499 | 11,222 |
Gross Unrealized Depreciation | ||
Less than 12 months | (127) | (591) |
Greater than 12 months | (792) | (421) |
Total | (919) | (1,013) |
No Recorded Allowance for Credit Losses | ||
Fair Value | ||
Less than 12 months | 3,092 | 8,522 |
Greater than 12 months | 8,406 | 2,698 |
Total | 11,498 | 11,220 |
Gross Unrealized Depreciation | ||
Less than 12 months | (126) | (591) |
Greater than 12 months | (792) | (421) |
Total | (918) | (1,012) |
Due in one year or less | ||
Fair Value | ||
Less than 12 months | 214 | 463 |
Greater than 12 months | 473 | 29 |
Total | 687 | 491 |
Gross Unrealized Depreciation | ||
Less than 12 months | (3) | (8) |
Greater than 12 months | (15) | (4) |
Total | (18) | (11) |
Due in one year through five years | ||
Fair Value | ||
Less than 12 months | 533 | 2,020 |
Greater than 12 months | 2,413 | 936 |
Total | 2,946 | 2,956 |
Gross Unrealized Depreciation | ||
Less than 12 months | (16) | (143) |
Greater than 12 months | (228) | (107) |
Total | (244) | (250) |
Due in five years through ten years | ||
Fair Value | ||
Less than 12 months | 405 | 1,162 |
Greater than 12 months | 1,140 | 395 |
Total | 1,545 | 1,557 |
Gross Unrealized Depreciation | ||
Less than 12 months | (16) | (148) |
Greater than 12 months | (186) | (98) |
Total | (203) | (246) |
Due after ten years | ||
Fair Value | ||
Less than 12 months | 491 | 439 |
Greater than 12 months | 304 | 262 |
Total | 795 | 701 |
Gross Unrealized Depreciation | ||
Less than 12 months | (60) | (50) |
Greater than 12 months | (52) | (64) |
Total | (112) | (114) |
Asset Backed Securities | ||
Fair Value | ||
Less than 12 months | 1,058 | 3,120 |
Greater than 12 months | 2,426 | 436 |
Total | 3,484 | 3,556 |
Gross Unrealized Depreciation | ||
Less than 12 months | (23) | (138) |
Greater than 12 months | (88) | (27) |
Total | (111) | (165) |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 months | 393 | 1,318 |
Greater than 12 months | 1,649 | 641 |
Total | 2,041 | 1,959 |
Gross Unrealized Depreciation | ||
Less than 12 months | (7) | (105) |
Greater than 12 months | (223) | (122) |
Total | (230) | (226) |
Securities where an allowance for credit loss was recorded | ||
Fair Value | ||
Less than 12 months | 0 | 2 |
Greater than 12 months | 0 | 0 |
Total | 1 | 2 |
Gross Unrealized Depreciation | ||
Less than 12 months | 0 | (1) |
Greater than 12 months | (1) | 0 |
Total | $ (1) | $ (1) |
INVESTMENTS - Summary of Compon
INVESTMENTS - Summary of Components of Net Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Debt Securities, Available-for-Sale [Line Items] | ||||
Gross investment income before adjustments | $ 252 | $ 188 | $ 444 | $ 350 |
Funds held interest income (expense) | (1) | 1 | 1 | 3 |
Interest income from Group | 3 | 2 | 7 | 4 |
Gross investment income | 253 | 190 | 453 | 357 |
Investment expenses | (11) | (14) | (21) | (24) |
Net investment income | 242 | 176 | 432 | 333 |
Fixed maturities | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Gross investment income before adjustments | 199 | 116 | 374 | 210 |
Equity securities | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Gross investment income before adjustments | 1 | 5 | 2 | 9 |
Short-term investments and cash | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Gross investment income before adjustments | 16 | 1 | 27 | 1 |
Limited partnerships | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Gross investment income before adjustments | 22 | 45 | (1) | 89 |
Dividends from preferred shares of affiliate | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Gross investment income before adjustments | 8 | 8 | 16 | 16 |
Other | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Gross investment income before adjustments | $ 6 | $ 14 | $ 27 | $ 26 |
INVESTMENTS - Summary of Comp_2
INVESTMENTS - Summary of Components of Net Realized Capital Gains (Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Debt Securities, Available-for-Sale [Line Items] | ||||
Total net gains (losses) on investments | $ (22) | $ (378) | $ 0 | $ (605) |
Fixed maturities | Market Value | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Allowances for credit losses | 0 | 2 | (10) | 0 |
Net realized gains (losses) from dispositions | (7) | (10) | (9) | (15) |
Equity securities | Fair Value | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Net realized gains (losses) from dispositions | 0 | (30) | 7 | (38) |
Gains (losses) from fair value adjustments | 8 | (186) | 11 | (317) |
Other invested assets | 0 | 1 | 0 | 5 |
Other invested assets, fair value | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Gains (losses) from fair value adjustments | $ (23) | $ (155) | $ 1 | $ (239) |
INVESTMENTS - Schedule of Allow
INVESTMENTS - Schedule of Allowance for Credit Loss Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ (56) | $ (29) | $ (46) | $ (27) |
Credit losses on securities where credit losses were not previously recorded | (2) | (5) | (14) | (8) |
Increases in allowance on previously impaired securities | 0 | (1) | 0 | (1) |
Decreases in allowance on previously impaired securities | 0 | 0 | 0 | 0 |
Reduction in allowance due to disposals | 1 | 8 | 4 | 9 |
Balance, end of period | (57) | (27) | (57) | (27) |
Corporate Securities | ||||
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | (55) | (20) | (45) | (19) |
Credit losses on securities where credit losses were not previously recorded | (2) | (5) | (14) | (7) |
Increases in allowance on previously impaired securities | 0 | (1) | 0 | (1) |
Decreases in allowance on previously impaired securities | 0 | 0 | 0 | 0 |
Reduction in allowance due to disposals | 1 | 0 | 4 | 1 |
Balance, end of period | (55) | (26) | (55) | (26) |
Asset Backed Securities | ||||
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 0 | (8) | 0 | (8) |
Credit losses on securities where credit losses were not previously recorded | 0 | 0 | 0 | 0 |
Increases in allowance on previously impaired securities | 0 | 0 | 0 | 0 |
Decreases in allowance on previously impaired securities | 0 | 0 | 0 | 0 |
Reduction in allowance due to disposals | 0 | 8 | 0 | 8 |
Balance, end of period | 0 | 0 | 0 | 0 |
Foreign Corporate | ||||
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | (1) | (1) | (1) | 0 |
Credit losses on securities where credit losses were not previously recorded | 0 | 0 | 0 | (1) |
Increases in allowance on previously impaired securities | 0 | 0 | 0 | 0 |
Decreases in allowance on previously impaired securities | 0 | 0 | 0 | 0 |
Reduction in allowance due to disposals | 0 | 0 | 0 | 0 |
Balance, end of period | $ (1) | $ (2) | $ (1) | $ (2) |
INVESTMENTS - Schedule of Held-
INVESTMENTS - Schedule of Held-to-Maturity, Allowance for Credit Loss Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Debt Securities, Held-to-Maturity, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ (9) | $ (9) |
Credit losses on securities where credit losses were not previously recorded | 0 | 0 |
Increases in allowance on previously impaired securities | 0 | 0 |
Decreases in allowance on previously impaired securities | 0 | 0 |
Reduction in allowance due to disposals | 0 | 0 |
Balance, end of period | (8) | (8) |
Corporate Securities | ||
Debt Securities, Held-to-Maturity, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | (2) | (2) |
Credit losses on securities where credit losses were not previously recorded | 0 | 0 |
Increases in allowance on previously impaired securities | 0 | 0 |
Decreases in allowance on previously impaired securities | 0 | 0 |
Reduction in allowance due to disposals | 0 | 0 |
Balance, end of period | (2) | (2) |
Asset Backed Securities | ||
Debt Securities, Held-to-Maturity, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | (6) | (6) |
Credit losses on securities where credit losses were not previously recorded | 0 | 0 |
Increases in allowance on previously impaired securities | 0 | 0 |
Decreases in allowance on previously impaired securities | 0 | 0 |
Reduction in allowance due to disposals | 0 | 0 |
Balance, end of period | (6) | (6) |
Foreign Corporate | ||
Debt Securities, Held-to-Maturity, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | (1) | (1) |
Credit losses on securities where credit losses were not previously recorded | 0 | 0 |
Increases in allowance on previously impaired securities | 0 | 0 |
Decreases in allowance on previously impaired securities | 0 | 0 |
Reduction in allowance due to disposals | 0 | 0 |
Balance, end of period | $ (1) | $ (1) |
INVESTMENTS - Summary of Gross
INVESTMENTS - Summary of Gross Gains (Losses) from Sales of Fixed Maturity and Equity Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Debt Securities, Available-for-Sale [Line Items] | ||||
Proceeds from sales of fixed maturity securities - available for sale | $ 59 | $ 245 | $ 109 | $ 511 |
Gross gains from dispositions | 1 | 3 | 4 | 6 |
Gross losses from dispositions | (8) | (13) | (12) | (21) |
Proceeds from sales of equity securities | 46 | 425 | ||
Equity securities | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Proceeds from sales of equity securities | 0 | 343 | ||
Gross gains from dispositions | 0 | 4 | 7 | 8 |
Gross losses from dispositions | $ 0 | $ (34) | $ 0 | $ (46) |
FAIR VALUE - Narrative (Details
FAIR VALUE - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 14,202 | $ 12,671 |
Fair value of public equity portfolio | 4,000 | 2,700 |
Other invested assets, at fair value | 1,474 | 1,472 |
Fair Value | Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other invested assets, at fair value | 293 | 292 |
Fixed maturities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 1,800 | 1,700 |
Asset Backed Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 4,676 | $ 3,951 |
FAIR VALUE - Fair Value Measure
FAIR VALUE - Fair Value Measurement Levels for all Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 14,202 | $ 12,671 |
Equity securities, at fair value | 167 | 194 |
Other invested assets, at fair value | 1,474 | 1,472 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Equity securities, at fair value | 145 | 132 |
Other invested assets, at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 12,360 | 10,946 |
Equity securities, at fair value | 22 | 63 |
Other invested assets, at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 1,842 | 1,725 |
Equity securities, at fair value | 0 | 0 |
Other invested assets, at fair value | 1,474 | 1,472 |
U.S. Treasury securities and obligations of U.S. government agencies and corporations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 439 | 535 |
U.S. Treasury securities and obligations of U.S. government agencies and corporations | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
U.S. Treasury securities and obligations of U.S. government agencies and corporations | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 439 | 535 |
U.S. Treasury securities and obligations of U.S. government agencies and corporations | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Obligations of U.S. states and political subdivisions | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 395 | 413 |
Obligations of U.S. states and political subdivisions | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Obligations of U.S. states and political subdivisions | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 395 | 413 |
Obligations of U.S. states and political subdivisions | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Corporate Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 4,209 | 3,561 |
Corporate Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Corporate Securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 3,498 | 2,846 |
Corporate Securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 711 | 715 |
Asset Backed Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 4,676 | 3,951 |
Asset Backed Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Asset Backed Securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 3,561 | 2,957 |
Asset Backed Securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 1,115 | 994 |
Commercial | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 503 | 509 |
Commercial | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Commercial | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 503 | 509 |
Commercial | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Agency residential | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 1,654 | 1,628 |
Agency residential | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Agency residential | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 1,654 | 1,628 |
Agency residential | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Non-agency residential | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 59 | 3 |
Non-agency residential | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Non-agency residential | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 59 | 3 |
Non-agency residential | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Foreign government securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 684 | 637 |
Foreign government securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Foreign government securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 684 | 637 |
Foreign government securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Foreign Corporate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 1,583 | 1,433 |
Foreign Corporate | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Foreign Corporate | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 1,567 | 1,417 |
Foreign Corporate | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 16 | $ 16 |
FAIR VALUE - Activity Under Lev
FAIR VALUE - Activity Under Level 3, Fair Value Measurements Using Significant Unobservable Inputs by Asset Type (Details) - Market Value - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 1,745 | $ 2,125 | $ 1,725 | $ 1,997 |
Total gains or (losses) (realized/unrealized) | ||||
Included in earnings | 1 | (4) | 2 | (3) |
Included in other comprehensive income (loss) | (9) | (54) | 4 | (87) |
Purchases, issuances and settlements | 105 | 97 | 111 | 256 |
Transfers in/(out) of Level 3 and reclassification of securities in/(out) of investment categories | 0 | 0 | 0 | 0 |
Ending balance | 1,842 | 2,163 | 1,842 | 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 | 0 | 2 | 0 | 3 |
Corporate Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 709 | 715 | 715 | 730 |
Total gains or (losses) (realized/unrealized) | ||||
Included in earnings | 1 | (5) | 2 | (3) |
Included in other comprehensive income (loss) | (2) | (3) | (6) | (7) |
Purchases, issuances and settlements | 3 | 28 | 0 | 15 |
Transfers in/(out) of Level 3 and reclassification of securities in/(out) of investment categories | 0 | 128 | 0 | 128 |
Ending balance | 711 | 862 | 711 | 862 |
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 | 0 | (5) | 0 | (5) |
Asset Backed Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 1,020 | 1,389 | 994 | 1,251 |
Total gains or (losses) (realized/unrealized) | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Included in other comprehensive income (loss) | (8) | (47) | 10 | (76) |
Purchases, issuances and settlements | 103 | 62 | 111 | 228 |
Transfers in/(out) of Level 3 and reclassification of securities in/(out) of investment categories | 0 | (148) | 0 | (148) |
Ending balance | 1,115 | 1,255 | 1,115 | 1,255 |
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 | 0 | 8 | 0 | 8 |
CMBS | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 6 | 0 | ||
Total gains or (losses) (realized/unrealized) | ||||
Included in earnings | 0 | 0 | ||
Included in other comprehensive income (loss) | 0 | 0 | ||
Purchases, issuances and settlements | 0 | 6 | ||
Transfers in/(out) of Level 3 and reclassification of securities in/(out) of investment categories | 0 | 0 | ||
Ending balance | 6 | 6 | ||
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 | 0 | 0 | 0 | |
Foreign Corporate | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 16 | 16 | 16 | 16 |
Total gains or (losses) (realized/unrealized) | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 0 | (4) | 0 | (4) |
Purchases, issuances and settlements | 0 | 8 | 0 | 8 |
Transfers in/(out) of Level 3 and reclassification of securities in/(out) of investment categories | 0 | 20 | 0 | 20 |
Ending balance | $ 16 | 40 | 16 | 40 |
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 | $ 0 | $ 0 | $ 0 |
RESERVE FOR LOSSES, LAE AND FUT
RESERVE FOR LOSSES, LAE AND FUTURE POLICY BENEFIT RESERVE - Summary of Activity in the Reserve for Losses and LAE (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Gross reserves beginning of period | $ 14,977 | $ 13,121 | ||
Less reinsurance recoverables on unpaid losses | (3,440) | (3,593) | $ (3,684) | $ (3,651) |
Net reserves beginning of period | 12,072 | 10,145 | 11,294 | 9,470 |
Incurred related to: | ||||
Current year | 2,720 | 2,521 | ||
Prior years | (1) | 9 | ||
Total incurred losses and LAE | 2,719 | 2,530 | ||
Paid related to: | ||||
Current year | 937 | 775 | ||
Prior years | 1,019 | 1,063 | ||
Total paid losses and LAE | 1,956 | 1,838 | ||
Foreign exchange/translation adjustment | 15 | (17) | ||
Net reserves end of period | 12,072 | 10,145 | ||
Less reinsurance recoverables on unpaid losses | 3,440 | 3,593 | $ 3,684 | $ 3,651 |
Gross reserves end of period | $ 15,512 | $ 13,738 |
RESERVES FOR LOSSES, LAE AND _3
RESERVES FOR LOSSES, LAE AND FUTURE POLICY BENEFIT RESERVE - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reserves For Losses And LAE [Line Items] | ||||
Current year incurred losses | $ 2,720 | $ 2,521 | ||
Less reinsurance recoverables on unpaid losses | 3,440 | $ 3,593 | $ 3,684 | $ 3,651 |
Higher Premiums Earned | ||||
Reserves For Losses And LAE [Line Items] | ||||
Decrease in current year catastrophe losses | (24) | |||
Hurricane | ||||
Reserves For Losses And LAE [Line Items] | ||||
Less reinsurance recoverables on unpaid losses | $ 25 |
SEGMENT REPORTING - Schedule of
SEGMENT REPORTING - Schedule of Underwriting Results for Operating Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Gross written premiums | $ 2,915 | $ 2,437 | $ 5,411 | $ 4,642 |
Net written premiums | 2,396 | 1,995 | 4,459 | 3,791 |
Premiums earned | 2,131 | 1,954 | 4,200 | 3,783 |
Incurred losses and loss adjustment expenses | 1,325 | 1,304 | 2,719 | 2,530 |
Commission, brokerage, taxes and fees | 433 | 409 | 869 | 793 |
Other underwriting expenses | 136 | 120 | 275 | 238 |
Underwriting gain (loss) | 237 | 121 | 336 | 222 |
Net investment income | 242 | 176 | 432 | 333 |
Net gains (losses) on investments | (22) | (378) | 0 | (605) |
Corporate expense | (4) | (6) | (10) | (12) |
Interest, fee and bond issue cost amortization expense | (33) | (24) | (65) | (48) |
Other income (expense) | (10) | 0 | (15) | (9) |
INCOME (LOSS) BEFORE TAXES | 411 | (110) | 679 | (119) |
Reinsurance | ||||
Segment Reporting Information [Line Items] | ||||
Gross written premiums | 1,791 | 1,394 | 3,434 | 2,774 |
Net written premiums | 1,580 | 1,245 | 2,953 | 2,430 |
Premiums earned | 1,417 | 1,295 | 2,784 | 2,504 |
Incurred losses and loss adjustment expenses | 864 | 875 | 1,794 | 1,696 |
Commission, brokerage, taxes and fees | 363 | 332 | 724 | 647 |
Other underwriting expenses | 36 | 32 | 75 | 63 |
Underwriting gain (loss) | 153 | 55 | 191 | 98 |
Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Gross written premiums | 1,125 | 1,043 | 1,977 | 1,868 |
Net written premiums | 816 | 750 | 1,506 | 1,360 |
Premiums earned | 714 | 659 | 1,416 | 1,279 |
Incurred losses and loss adjustment expenses | 460 | 429 | 925 | 834 |
Commission, brokerage, taxes and fees | 70 | 77 | 145 | 146 |
Other underwriting expenses | 100 | 88 | 200 | 175 |
Underwriting gain (loss) | $ 84 | $ 66 | $ 145 | $ 124 |
SENIOR NOTES - Schedule of Outs
SENIOR NOTES - Schedule of Outstanding Senior Notes (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Consolidated Balance Sheet Amount | $ 2,348,000,000 | $ 2,347,000,000 |
Senior Notes | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Principal Amounts | 2,400,000,000 | |
Consolidated Balance Sheet Amount | 2,348,000,000 | 2,347,000,000 |
Fair Value | 1,738,000,000 | 1,647,000,000 |
Senior Notes | Senior Notes 4.868% | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Principal Amounts | 400,000,000 | |
Consolidated Balance Sheet Amount | 397,000,000 | 397,000,000 |
Fair Value | $ 360,000,000 | 343,000,000 |
Debt instrument, stated interest rate | 4.868% | |
Senior Notes | Senior Notes 3.50% | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Principal Amounts | $ 1,000,000,000 | |
Consolidated Balance Sheet Amount | 981,000,000 | 981,000,000 |
Fair Value | $ 714,000,000 | 677,000,000 |
Debt instrument, stated interest rate | 3.50% | |
Senior Notes | Senior Notes 3.125% | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Principal Amounts | $ 1,000,000,000 | |
Consolidated Balance Sheet Amount | 970,000,000 | 969,000,000 |
Fair Value | $ 664,000,000 | $ 627,000,000 |
Debt instrument, stated interest rate | 3.125% |
SENIOR NOTES - Schedule of Inte
SENIOR NOTES - Schedule of Interest Expense Incurred in Connection with Senior Notes (Details) - Senior Notes - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Debt Instrument [Line Items] | ||||
Interest expense incurred | $ 22 | $ 22 | $ 43 | $ 43 |
Senior Notes 4.868% | ||||
Debt Instrument [Line Items] | ||||
Interest expense incurred | $ 5 | 5 | $ 10 | 10 |
Debt instrument, stated interest rate | 4.868% | 4.868% | ||
Senior Notes 3.50% | ||||
Debt Instrument [Line Items] | ||||
Interest expense incurred | $ 9 | 9 | $ 18 | 18 |
Debt instrument, stated interest rate | 3.50% | 3.50% | ||
Senior Notes 3.125% | ||||
Debt Instrument [Line Items] | ||||
Interest expense incurred | $ 8 | $ 8 | $ 16 | $ 16 |
Debt instrument, stated interest rate | 3.125% | 3.125% |
LONG-TERM SUBORDINATED NOTES -
LONG-TERM SUBORDINATED NOTES - Narrative (Details) | 6 Months Ended | ||||
May 17, 2017 | Mar. 15, 2017 | Jun. 30, 2023 | Aug. 14, 2023 | May 14, 2017 | |
Subordinated Notes 6.60% | Long Term Subordinated Debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 6.60% | ||||
Interest basis, 3 month LIBOR plus number of basis points, reset quarterly | 2.385% | ||||
Right to defer interest on one or more occasions for up to number of consecutive years | 10 years | ||||
Percentage of principal amount required for redemption | 100% | ||||
Subordinated Notes 6.60% | Long Term Subordinated Debt | Forecast | |||||
Debt Instrument [Line Items] | |||||
Reset quarterly interest rate | 7.71% | ||||
Senior Notes 4.868% | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 4.868% | ||||
Senior Notes 3.50% | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 3.50% | ||||
Senior Notes 3.125% | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 3.125% |
LONG-TERM SUBORDINATED NOTES _2
LONG-TERM SUBORDINATED NOTES - Schedule of Outstanding Fixed to Floating Rate Long Term Subordinated Notes (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Consolidated Balance Sheet Amount | $ 218,000,000 | $ 218,000,000 |
Subordinated Notes 6.60% | Long Term Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Original Principal Amount | 400,000,000 | |
Consolidated Balance Sheet Amount | 218,000,000 | 218,000,000 |
Fair Value | $ 187,000,000 | $ 187,000,000 |
LONG-TERM SUBORDINATED NOTES _3
LONG-TERM SUBORDINATED NOTES - Schedule of Interest Expense Incurred in Connection with Long Term Subordinated Notes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Long-Term Debt, Unclassified [Abstract] | ||||
Interest expense incurred | $ 4 | $ 2 | $ 8 | $ 3 |
FEDERAL HOME LOAN BANK MEMBER_2
FEDERAL HOME LOAN BANK MEMBERSHIP - Narrative (Details) - Federal Home Loan Bank of New York - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||||
Maximum percentage of admitted assets allowed for borrowing base | 10% | 10% | ||
Admitted assets for FHLB | $ 24,000 | $ 24,000 | ||
Maximum amount available under FHLB | 2,000 | 2,000 | ||
Outstanding | 519 | 519 | ||
Interest expense | $ 7 | $ 0.8 | $ 13 | $ 2 |
Amount of borrowed funds required to be used to acquire additional membership stock, percentage | 4.50% |
COLLATERALIZED REINSURANCE AN_3
COLLATERALIZED REINSURANCE AND TRUST AGREEMENTS - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Collateralized Reinsurance And Trust Agreements [Abstract] | ||
Amount on deposit in trust accounts | $ 717 | $ 554 |
Restricted cash | 82 | $ 187 |
Catastrophe bond protection, threshold | 350 | |
Catastrophe bond protection, potential recovery | $ 25 |
COLLATERALIZED REINSURANCE AN_4
COLLATERALIZED REINSURANCE AND TRUST AGREEMENTS - Summary of Collateralized Reinsurance Agreements (Details) - Kilimanjaro Re Limited $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Effects of Reinsurance [Line Items] | |
Limit | $ 1,800 |
Reinsurance Contract [Axis]: Series 2019-1 Class A-1 | |
Effects of Reinsurance [Line Items] | |
Limit | 150 |
Reinsurance Contract [Axis]: Series 2019-1 Class A-2 | |
Effects of Reinsurance [Line Items] | |
Limit | 150 |
Reinsurance Contract [Axis]: Series 2019-1 Class B-1 | |
Effects of Reinsurance [Line Items] | |
Limit | 275 |
Reinsurance Contract [Axis]: Series 2019-1 Class B-2 | |
Effects of Reinsurance [Line Items] | |
Limit | 275 |
Reinsurance Contract [Axis]: Series 2021-1 Class A-1 | |
Effects of Reinsurance [Line Items] | |
Limit | 150 |
Reinsurance Contract [Axis]: Series 2021-1 Class A-2 | |
Effects of Reinsurance [Line Items] | |
Limit | 150 |
Reinsurance Contract [Axis]: Series 2021-1 Class B-1 | |
Effects of Reinsurance [Line Items] | |
Limit | 85 |
Reinsurance Contract [Axis]: Series 2021-1 Class B-2 | |
Effects of Reinsurance [Line Items] | |
Limit | 90 |
Reinsurance Contract [Axis]: Series 2021-1 Class C-1 | |
Effects of Reinsurance [Line Items] | |
Limit | 85 |
Reinsurance Contract [Axis]: Series 2021-1 Class C-2 | |
Effects of Reinsurance [Line Items] | |
Limit | 90 |
Reinsurance Contract [Axis]: Series 2022-1 Class A | |
Effects of Reinsurance [Line Items] | |
Limit | $ 300 |
OTHER COMPREHENSIVE INCOME (L_3
OTHER COMPREHENSIVE INCOME (LOSS) - Components Of Comprehensive Income (Loss) In The Consolidated Statements Of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Before Tax | ||||
Total other comprehensive income (loss) | $ (53) | $ (524) | $ 109 | $ (1,021) |
Tax Effect | ||||
Total other comprehensive income (loss) | 11 | 110 | (23) | 214 |
Net of Tax | ||||
Total other comprehensive income (loss), net of tax | (42) | (414) | 86 | (807) |
URA(D) on securities | ||||
Before Tax | ||||
OCI before reclassification, before tax | (56) | (520) | 86 | (1,019) |
Reclassification from AOCI, before tax | 8 | 8 | 19 | 11 |
Tax Effect | ||||
OCI before reclassification, tax effect | 12 | 109 | (18) | 213 |
Reclassification from AOCI, tax | (2) | (2) | (4) | (2) |
Net of Tax | ||||
OCI before reclassifications, net of tax | (44) | (411) | 68 | (805) |
Reclassification from AOCI, net of tax | 6 | 6 | 15 | 8 |
Total other comprehensive income (loss), net of tax | (38) | (405) | 83 | (797) |
Foreign currency translation adjustments | ||||
Before Tax | ||||
OCI before reclassification, before tax | (5) | (12) | 3 | (15) |
Tax Effect | ||||
OCI before reclassification, tax effect | 1 | 3 | (1) | 3 |
Net of Tax | ||||
OCI before reclassifications, net of tax | (4) | (10) | 2 | (12) |
Total other comprehensive income (loss), net of tax | (4) | (10) | 2 | (12) |
Benefit plan net gain (loss) | ||||
Before Tax | ||||
Reclassification from AOCI, before tax | 1 | 1 | 1 | 2 |
Tax Effect | ||||
Reclassification from AOCI, tax | 0 | 0 | 0 | 0 |
Net of Tax | ||||
Reclassification from AOCI, net of tax | 0 | 1 | 1 | 2 |
Total other comprehensive income (loss), net of tax | $ 0 | $ 1 | $ 1 | $ 2 |
OTHER COMPREHENSIVE INCOME (L_4
OTHER COMPREHENSIVE INCOME (LOSS) - Reclassification From Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net gains (losses) on investments | $ (22) | $ (378) | $ 0 | $ (605) |
Other underwriting expenses | 136 | 120 | 275 | 238 |
Income tax expense (benefit) | 81 | (25) | 130 | (35) |
Net income (loss) | 330 | (86) | 549 | (85) |
URA(D) on securities | Reclassification From Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net gains (losses) on investments | 8 | 8 | 19 | 11 |
Income tax expense (benefit) | (2) | (2) | (4) | (2) |
Net income (loss) | 6 | 6 | 15 | 8 |
Benefit plan net gain (loss) | Reclassification From Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other underwriting expenses | 1 | 1 | 1 | 2 |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Net income (loss) | $ 0 | $ 1 | $ 1 | $ 2 |
OTHER COMPREHENSIVE INCOME (L_5
OTHER COMPREHENSIVE INCOME (LOSS) - Components of Accumulated Other Comprehensive Income (Loss), Net of Tax, in the Consolidated Balance Sheets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 5,654 | |||
Current period change | $ (42) | $ (414) | 86 | $ (807) |
Ending balance | 6,290 | 6,146 | 6,290 | 6,146 |
Accumulated Other Comprehensive Income (Loss), Net of Deferred Income Taxes | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (720) | (302) | (848) | 91 |
Current period change | (42) | (414) | 86 | (807) |
Ending balance | (762) | (716) | (762) | (716) |
URA(D) on securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (695) | (270) | (816) | 122 |
Current period change | (38) | (405) | 83 | (797) |
Ending balance | (734) | (675) | (734) | (675) |
Foreign currency translation adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 8 | 18 | 2 | 20 |
Current period change | (4) | (10) | 2 | (12) |
Ending balance | 4 | 8 | 4 | 8 |
Benefit plan net gain (loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (33) | (50) | (33) | (51) |
Current period change | 0 | 1 | 1 | 2 |
Ending balance | $ (32) | $ (49) | $ (32) | $ (49) |
RELATED-PARTY TRANSACTIONS - Na
RELATED-PARTY TRANSACTIONS - Narrative (Details) € in Millions, £ in Millions, $ in Millions | 1 Months Ended | 10 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017 USD ($) | Dec. 31, 2015 USD ($) shares | Jan. 31, 2024 EUR (€) | Jan. 31, 2022 EUR (€) | Dec. 31, 2021 GBP (£) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Related Party Transaction [Line Items] | |||||||
Shares received in exchange from affiliated entity for transfer | shares | 1,773.214 | ||||||
Preferred shares par value | $ | $ 1 | ||||||
Annual dividend rate | 1.75% | ||||||
Shares transferred to affiliated entity | shares | 9,719,971 | ||||||
Subject loss reserves | $ | $ 2,300 | ||||||
Amount transferred | $ | 1,000 | ||||||
Bermuda Re | |||||||
Related Party Transaction [Line Items] | |||||||
Adverse development coverage | $ | 500 | ||||||
Everest Re Group, Ltd. | Bermuda Re | Catastrophe Reinsurance | |||||||
Related Party Transaction [Line Items] | |||||||
Reinsurance agreement | £ | £ 110 | ||||||
Reinsurance agreement, threshold | £ | 29 | ||||||
Payments for coverage | £ | £ 4 | ||||||
Everest Re Group, Ltd. | Ireland Re | Catastrophe Reinsurance | |||||||
Related Party Transaction [Line Items] | |||||||
Reinsurance agreement | € | € 121 | ||||||
Reinsurance agreement, threshold | € | 18 | ||||||
Payments for coverage | € | € 10 | ||||||
Everest Re Group, Ltd. | Ireland Re | Catastrophe Reinsurance | Forecast | |||||||
Related Party Transaction [Line Items] | |||||||
Reinsurance agreement | € | € 61 | ||||||
Reinsurance agreement, threshold | € | 139 | ||||||
Payments for coverage | € | € 2 | ||||||
Bermuda Re | |||||||
Related Party Transaction [Line Items] | |||||||
Amount transferred | $ | $ 970 | ||||||
Reinsurance recoverables - affiliated | $ | $ 803 | $ 804 |
RELATED-PARTY TRANSACTIONS - Af
RELATED-PARTY TRANSACTIONS - Affiliated Quota Share Reinsurance Agreements for all New and Renewal Business for the Indicated Coverage Period (Details) $ in Millions, $ in Millions | 6 Months Ended | |
Jun. 30, 2023 USD ($) | Jun. 30, 2023 CAD ($) | |
01/01/2010-12/31/2010 | ||
Related Party Transaction [Line Items] | ||
Percent Ceded | 44% | 44% |
Single Occurrence Limit | $ 150 | |
Aggregate Limit | $ 325 | |
01/01/2011-12/31/2011 | ||
Related Party Transaction [Line Items] | ||
Percent Ceded | 50% | 50% |
Single Occurrence Limit | $ 150 | |
Aggregate Limit | $ 300 | |
01/01/2012-12/31/2014 | ||
Related Party Transaction [Line Items] | ||
Percent Ceded | 50% | 50% |
Single Occurrence Limit | $ 100 | |
Aggregate Limit | $ 200 | |
01/01/2015-12/31/2016 | ||
Related Party Transaction [Line Items] | ||
Percent Ceded | 50% | 50% |
Single Occurrence Limit | $ 163 | |
Aggregate Limit | $ 325 | |
01/01/2017-12/31/2017 | ||
Related Party Transaction [Line Items] | ||
Percent Ceded | 60% | 60% |
Single Occurrence Limit | $ 219 | |
Aggregate Limit | $ 438 | |
01/01/2010-12/31/2010 | ||
Related Party Transaction [Line Items] | ||
Percent Ceded | 60% | 60% |
Single Occurrence Limit | $ 350 | |
Aggregate Limit | $ 0 | |
01/01/2011-12/31/2011 | ||
Related Party Transaction [Line Items] | ||
Percent Ceded | 60% | 60% |
Single Occurrence Limit | $ 350 | |
Aggregate Limit | $ 0 | |
01/01/2012-12/31/2012 | ||
Related Party Transaction [Line Items] | ||
Percent Ceded | 75% | 75% |
Single Occurrence Limit | $ 206 | |
Aggregate Limit | $ 413 | |
01/01/2013-12/31/2013 | ||
Related Party Transaction [Line Items] | ||
Percent Ceded | 75% | 75% |
Single Occurrence Limit | $ 150 | |
Aggregate Limit | $ 413 | |
01/01/2014-12/31/2017 | ||
Related Party Transaction [Line Items] | ||
Percent Ceded | 75% | 75% |
Single Occurrence Limit | $ 263 | |
Aggregate Limit | $ 413 | |
01/01/2012-12/31/2017 | ||
Related Party Transaction [Line Items] | ||
Percent Ceded | 80% | 80% |
Single Occurrence Limit | $ 0 | |
Aggregate Limit | $ 0 | |
43831 | ||
Related Party Transaction [Line Items] | ||
Percent Ceded | 100% | 100% |
Single Occurrence Limit | $ 0 | |
Aggregate Limit | $ 0 |
RELATED-PARTY TRANSACTIONS - Di
RELATED-PARTY TRANSACTIONS - Dividends Received on Preferred Shares (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Dividends from preferred shares of affiliate | ||||
Related Party Transaction [Line Items] | ||||
Dividends received on preferred stock of affiliate | $ 8 | $ 8 | $ 16 | $ 16 |
RELATED-PARTY TRANSACTIONS - Sc
RELATED-PARTY TRANSACTIONS - Schedule of Related-Party Long-Term Notes (Details) - USD ($) | 6 Months Ended | |||||
Jun. 30, 2023 | Dec. 31, 2022 | Dec. 12, 2022 | Jun. 14, 2022 | Aug. 05, 2021 | Dec. 17, 2019 | |
1.69% Long-term Note | ||||||
Related Party Transaction [Line Items] | ||||||
Interest rate | 1.69% | |||||
1.00% Long-term Note | ||||||
Related Party Transaction [Line Items] | ||||||
Interest rate | 1% | |||||
3.11% Long-term Note | ||||||
Related Party Transaction [Line Items] | ||||||
Interest rate | 3.11% | |||||
4.34%Long-term Note | ||||||
Related Party Transaction [Line Items] | ||||||
Interest rate | 4.34% | |||||
Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Principal Amounts | $ 840,000,000 | |||||
Consolidated Balance Sheet Amount | 0 | $ 840,000,000 | ||||
Fair Value | 0 | 689,000,000 | ||||
Affiliated Entity | 1.69% Long-term Note | ||||||
Related Party Transaction [Line Items] | ||||||
Principal Amounts | $ 300,000,000 | |||||
Consolidated Balance Sheet Amount | 0 | 300,000,000 | ||||
Fair Value | $ 0 | 242,000,000 | ||||
Affiliated Entity | 1.00% Long-term Note | ||||||
Related Party Transaction [Line Items] | ||||||
Interest rate | 1% | |||||
Principal Amounts | $ 200,000,000 | |||||
Consolidated Balance Sheet Amount | $ 0 | 200,000,000 | ||||
Fair Value | $ 0 | 151,000,000 | ||||
Affiliated Entity | 3.11% Long-term Note | ||||||
Related Party Transaction [Line Items] | ||||||
Interest rate | 3.11% | |||||
Principal Amounts | $ 215,000,000 | |||||
Consolidated Balance Sheet Amount | $ 0 | 215,000,000 | ||||
Fair Value | $ 0 | 171,000,000 | ||||
Affiliated Entity | 4.34%Long-term Note | ||||||
Related Party Transaction [Line Items] | ||||||
Interest rate | 4.34% | |||||
Principal Amounts | $ 125,000,000 | |||||
Consolidated Balance Sheet Amount | $ 0 | 125,000,000 | ||||
Fair Value | $ 0 | $ 125,000,000 |
RELATED-PARTY TRANSACTIONS - _2
RELATED-PARTY TRANSACTIONS - Schedule of Loss Portfolio Transfer Reinsurance Agreements, Net Insurance Exposures and Reserves were Transferred to an Affiliate (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
37165 | |
Related Party Transaction [Line Items] | |
% of Business | 100% |
39722 | |
Related Party Transaction [Line Items] | |
Amount of Transfer | $ 747 |
39722 | |
Related Party Transaction [Line Items] | |
Amount of Transfer | $ 970 |
RELATED-PARTY TRANSACTIONS -Sch
RELATED-PARTY TRANSACTIONS -Schedule of Related-Party Interest Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Related Party Transaction [Line Items] | ||||
Net investment income | $ 242 | $ 176 | $ 432 | $ 333 |
1.69% Long-term Note | ||||
Related Party Transaction [Line Items] | ||||
Interest rate | 1.69% | |||
1.00% Long-term Note | ||||
Related Party Transaction [Line Items] | ||||
Interest rate | 1% | |||
3.11% Long-term Note | ||||
Related Party Transaction [Line Items] | ||||
Interest rate | 3.11% | |||
4.34%Long-term Note | ||||
Related Party Transaction [Line Items] | ||||
Interest rate | 4.34% | |||
Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Net investment income | 3 | 2 | $ 7 | 4 |
Affiliated Entity | 1.69% Long-term Note | ||||
Related Party Transaction [Line Items] | ||||
Net investment income | 1 | 1 | $ 2 | 3 |
Affiliated Entity | 1.00% Long-term Note | ||||
Related Party Transaction [Line Items] | ||||
Interest rate | 1% | |||
Net investment income | 0 | 1 | $ 1 | 1 |
Affiliated Entity | 3.11% Long-term Note | ||||
Related Party Transaction [Line Items] | ||||
Interest rate | 3.11% | |||
Net investment income | 1 | 0 | $ 3 | 0 |
Affiliated Entity | 4.34%Long-term Note | ||||
Related Party Transaction [Line Items] | ||||
Interest rate | 4.34% | |||
Net investment income | $ 1 | $ 0 | $ 2 | $ 0 |
RELATED-PARTY TRANSACTIONS - Pr
RELATED-PARTY TRANSACTIONS - Premiums and Losses Ceded by the Company to Affiliate (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Mt. Logan Re Segregated Accounts | ||||
Effects of Reinsurance [Line Items] | ||||
Ceded written premiums | $ 40 | $ 22 | $ 82 | $ 62 |
Ceded earned premiums | 44 | 29 | 82 | 72 |
Ceded losses and LAE | 19 | 23 | 32 | 60 |
Bermuda Re | ||||
Effects of Reinsurance [Line Items] | ||||
Ceded written premiums | 107 | 91 | 214 | 184 |
Ceded earned premiums | 107 | 91 | 213 | 184 |
Ceded losses and LAE | (5) | 3 | (9) | 1 |
Assumed written premiums | 4 | 1 | 4 | 3 |
Assumed earned premiums | 3 | 1 | 3 | 5 |
Assumed losses and LAE | 0 | 0 | 0 | 0 |
Ireland Re | ||||
Effects of Reinsurance [Line Items] | ||||
Assumed written premiums | 3 | 2 | 6 | 4 |
Assumed earned premiums | 3 | 2 | 6 | 5 |
Assumed losses and LAE | 1 | 0 | 1 | 2 |
Ireland Insurance | ||||
Effects of Reinsurance [Line Items] | ||||
Assumed written premiums | 11 | 2 | 12 | 4 |
Assumed earned premiums | 8 | 2 | 10 | 4 |
Assumed losses and LAE | $ 2 | $ (5) | $ 4 | $ 2 |