COVER
COVER - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 13, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 1,000 | ||
Entity Central Index Key | 0000914748 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
4.868% Senior Notes Due 2044 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 4.868% Senior Notes Due 2044 | ||
Trading Symbol | true | ||
Security Exchange Name | NYSE | ||
3.50% Senior Notes Due 2050 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 3.50% Senior Notes Due 2050 | ||
Trading Symbol | true | ||
Security Exchange Name | NYSE | ||
3.125% Senior Notes Due 2052 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 3.125% Senior Notes Due 2052 | ||
Trading Symbol | true | ||
Security Exchange Name | NYSE | ||
6.60% Long-Term Notes Due 2067 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 6.60% Long-Term Notes Due 2067 | ||
Trading Symbol | true | ||
Security Exchange Name | NYSE |
AUDIT INFORMATION
AUDIT INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | New York, New York |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS: | ||
Fixed maturities - available for sale, at fair value (amortized cost: 2023, $16,304; 2022,$13,699, credit allowances: 2023, $(48); 2022, $(46)) | $ 15,932,000,000 | $ 12,671,000,000 |
Fixed maturities - held to maturity, at amortized cost (fair value: 2023, $850; 2022, $793 net of credit allowances: 2023, $(8); 2022, $(9)) | 851,000,000 | 811,000,000 |
Equity securities, at fair value | 91,000,000 | 194,000,000 |
Other invested assets | 3,259,000,000 | 2,754,000,000 |
Other invested assets, at fair value | 1,481,000,000 | 1,472,000,000 |
Short-term investments | 1,298,000,000 | 812,000,000 |
Cash | 527,000,000 | 481,000,000 |
Total investments and cash | 23,439,000,000 | 19,195,000,000 |
Accrued investment income | 222,000,000 | 150,000,000 |
Premiums receivable (net of credit allowances: 2023, $(28); 2022, $(21)) | 2,245,000,000 | 1,721,000,000 |
Income tax asset, net | 141,000,000 | 288,000,000 |
Funds held by reinsureds | 306,000,000 | 303,000,000 |
Deferred acquisition costs | 659,000,000 | 499,000,000 |
Prepaid reinsurance premiums | 490,000,000 | 463,000,000 |
Other assets (net of credit allowances: 2023, $(9); 2022, $(5)) | 774,000,000 | 722,000,000 |
TOTAL ASSETS | 31,638,000,000 | 27,957,000,000 |
LIABILITIES: | ||
Reserve for losses and loss adjustment expenses | 15,796,000,000 | 14,977,000,000 |
Unearned premium reserve | 3,886,000,000 | 3,177,000,000 |
Funds held under reinsurance treaties | 54,000,000 | 43,000,000 |
Amounts due to reinsurers | 488,000,000 | 436,000,000 |
Losses in course of payment | 139,000,000 | 77,000,000 |
Income tax liability, net | 29,000,000 | 0 |
Senior notes | 2,349,000,000 | 2,347,000,000 |
Long-term notes | 218,000,000 | 218,000,000 |
Borrowings from FHLB | 819,000,000 | 519,000,000 |
Accrued interest on debt and borrowings | 22,000,000 | 19,000,000 |
Unsettled securities payable | 126,000,000 | 1,000,000 |
Other liabilities | 526,000,000 | 489,000,000 |
TOTAL LIABILITIES | 24,451,000,000 | 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 $(76) at 2023 and $(225) at 2022 | (287,000,000) | (848,000,000) |
Retained earnings | 6,372,000,000 | 5,400,000,000 |
Total stockholder's equity | 7,187,000,000 | 5,654,000,000 |
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | 31,638,000,000 | 27,957,000,000 |
Affiliated Entity | ||
ASSETS: | ||
Notes receivable - affiliated | 0 | 840,000,000 |
Reinsurance recoverables | 1,547,000,000 | 1,935,000,000 |
Unaffiliated Party | ||
ASSETS: | ||
Reinsurance recoverables | $ 1,816,000,000 | $ 1,841,000,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS: | ||
Amortized cost | $ 16,304 | $ 13,699 |
Fixed maturities - available for sale, credit allowances | (48) | (46) |
Fixed maturities - held to maturity, at amortized cost | 850 | 793 |
Allowances for Credit Loss | (8) | (9) |
Premium receivable, net of credit allowances | (28) | (21) |
Reinsurance recoverables, net of credit allowances | (22) | (21) |
Other assets, net of credit allowances | $ (9) | $ (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) | $ (76) | $ (225) |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
REVENUES: | |||
Premiums earned | $ 8,536 | $ 7,876 | $ 7,179 |
Net investment income | 993 | 638 | 745 |
Total net gains (losses) on investments | (180) | (982) | 501 |
Other income (expense) | (11) | (6) | 23 |
Total revenues | 9,337 | 7,526 | 8,448 |
CLAIMS AND EXPENSES: | |||
Incurred losses and loss adjustment expenses | 5,578 | 5,823 | 5,387 |
Commission, brokerage, taxes and fees | 1,851 | 1,632 | 1,513 |
Other underwriting expenses | 574 | 501 | 454 |
Corporate expenses | 18 | 26 | 33 |
Interest, fee and bond issue cost amortization expense | 134 | 101 | 70 |
Total claims and expenses | 8,156 | 8,083 | 7,457 |
INCOME (LOSS) BEFORE TAXES | 1,181 | (557) | 991 |
Income tax expense (benefit) | 210 | (112) | 192 |
NET INCOME (LOSS) | 972 | (445) | 800 |
Other comprehensive income (loss), net of tax: | |||
Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period | 374 | (1,011) | (200) |
Reclassification adjustment for realized losses (gains) included in net income (loss) | 153 | 73 | 9 |
Total URA(D) on securities arising during the period | 527 | (938) | (191) |
Foreign currency translation adjustments | 17 | (18) | (9) |
Benefit plan actuarial net gain (loss) for the period | 15 | 15 | 17 |
Reclassification adjustment for amortization of net (gain) loss included in net income (loss) | 2 | 2 | 6 |
Total benefit plan net gain (loss) for the period | 17 | 17 | 23 |
Total other comprehensive income (loss), net of tax | 561 | (939) | (177) |
COMPREHENSIVE INCOME (LOSS) | $ 1,533 | $ (1,384) | $ 623 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER’S EQUITY - USD ($) $ in Millions | Total | COMMON STOCK | ADDITIONAL PAID-IN CAPITAL: | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), NET OF DEFERRED INCOME TAXES: | RETAINED EARNINGS: |
Beginning balance (in shares) at Dec. 31, 2020 | 1,000 | ||||
Beginning balance at Dec. 31, 2020 | $ 1,101 | $ 268 | $ 5,045 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation plans | 0 | ||||
Net increase (decrease) during the period | $ (177) | (177) | |||
Net income (loss) | 800 | 800 | |||
Ending balance (in shares) at Dec. 31, 2021 | 1,000 | ||||
Ending balance at Dec. 31, 2021 | 7,038 | 1,102 | 91 | 5,845 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation plans | 0 | ||||
Net increase (decrease) during the period | (939) | (939) | |||
Net income (loss) | $ (445) | (445) | |||
Ending balance (in shares) at Dec. 31, 2022 | 1,000 | 1,000 | |||
Ending balance at Dec. 31, 2022 | $ 5,654 | 1,102 | (848) | 5,400 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation plans | 0 | ||||
Net increase (decrease) during the period | 561 | 561 | |||
Net income (loss) | $ 972 | 972 | |||
Ending balance (in shares) at Dec. 31, 2023 | 1,000 | 1,000 | |||
Ending balance at Dec. 31, 2023 | $ 7,187 | $ 1,102 | $ (287) | $ 6,372 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ 972 | $ (445) | $ 800 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Decrease (increase) in premiums receivable | (519) | (3) | (128) |
Decrease (increase) in funds held by reinsureds, net | 9 | (9) | (30) |
Decrease (increase) in reinsurance recoverables | 424 | 70 | 337 |
Decrease (increase) in income taxes | 27 | (286) | 100 |
Decrease (increase) in prepaid reinsurance premiums | (25) | (36) | (68) |
Increase (decrease) in reserve for losses and loss adjustment expenses | 797 | 1,885 | 1,478 |
Increase (decrease) in unearned premiums | 703 | 189 | 609 |
Increase (decrease) in amounts due to reinsurers | 48 | 50 | 114 |
Increase (decrease) in losses in course of payment | 61 | (197) | 111 |
Change in equity adjustments in limited partnerships | (83) | (90) | (368) |
Distribution of limited partnership income | 57 | 107 | 114 |
Change in other assets and liabilities, net | (274) | (130) | (10) |
Non-cash compensation expense | 39 | 37 | 36 |
Amortization of bond premium (accrual of bond discount) | (43) | 22 | 31 |
Net (gains) losses on investments | 180 | 982 | (501) |
Net cash provided by (used in) operating activities | 2,374 | 2,146 | 2,625 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Proceeds from fixed maturities matured/called/repaid - available for sale | 1,206 | 1,399 | 2,330 |
Proceeds from fixed maturities sold - available for sale | 2,546 | 2,645 | 961 |
Proceeds from fixed maturities matured/called/repaid - held to maturity | 82 | 39 | 0 |
Proceeds from equity securities sold | 126 | 2,203 | 862 |
Distributions from other invested assets | 127 | 135 | 127 |
Cost of fixed maturities acquired - available for sale | (6,518) | (5,928) | (5,832) |
Cost of fixed maturities acquired - held to maturity | (112) | (125) | 0 |
Cost of equity securities acquired | (14) | (951) | (1,052) |
Cost of other invested assets acquired | (611) | (1,241) | (430) |
Net change in short-term investments | (444) | (113) | 13 |
Net change in unsettled securities transactions | 172 | (52) | (206) |
Proceeds from repayment (cost of issuance) of notes receivable - affiliated | 840 | (340) | (200) |
Net cash provided by (used in) investing activities | (2,599) | (2,329) | (3,427) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Tax benefit from share-based compensation, net of expense | (38) | (37) | (36) |
Net FHLB borrowings (repayments) | 300 | 0 | 209 |
Cost of debt repurchase | 0 | (6) | 0 |
Proceeds from issuance of senior notes | 0 | 0 | 968 |
Net cash provided by (used in) financing activities | 262 | (43) | 1,142 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 10 | 8 | (18) |
Net increase (decrease) in cash | 46 | (218) | 321 |
Cash, beginning of period | 481 | 699 | 379 |
Cash, end of period | 527 | 481 | 699 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Income taxes paid (recovered) | 182 | 174 | 91 |
Interest paid | 130 | 98 | 62 |
NON-CASH TRANSACTIONS | |||
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 | $ 0 | $ 722 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Business and Basis of Presentation. Everest Reinsurance Holdings, Inc. (“Holdings”), a Delaware company and direct subsidiary of Everest Underwriting Group (Ireland) Limited (“Holdings Ireland”), which is a direct subsidiary of Everest Group, Ltd. (“Group”), through its subsidiaries, principally provides property and casualty reinsurance and insurance in the United States of America and internationally. As used in this document, “Company” means Holdings and its subsidiaries. The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The statements include all of the following domestic and foreign direct and indirect subsidiaries of the Company: Everest Reinsurance Company (“Everest Re”), Everest Global Services, Inc. (“Global Services”), Everest National Insurance Company (“Everest National”), Everest Indemnity Insurance Company (“Everest Indemnity”), Everest Security Insurance Company (“Everest Security”), Everest Reinsurance Company - Escritório de Representação No Brasil Ltda. (“Everest Brazil”), Mt. Whitney Securities, Inc., Everest Denali Insurance Company (“Everest Denali”), Everest Premier Insurance Company (“Everest Premier”), Everest Specialty Underwriters Services, LLC, Everest International Assurance, Ltd. (“Everest Assurance”), EverSports & Entertainment Insurance, Inc. (“Specialty”), Specialty Insurance Group - Leisure and Entertainment Risk Purchasing Group LLC (“Specialty RPG”), Salus Systems (“Salus”) and Mt. McKinley Managers, L.L.C. All intercompany accounts and transactions have been eliminated. All amounts are reported in U.S. dollars. 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. Certain reclassifications and format changes have been made to prior years’ amounts to conform to the 2023 presentation. B. Investments and Cash. Fixed maturity securities designated as available for sale reflect unrealized appreciation and depreciation, as a result of changes in fair value during the period, in stockholder’s equity, net of income taxes in “accumulated other comprehensive income (loss)” in the consolidated balance sheets. The Company reviews all of its fixed maturity, available for sale securities whose fair value has fallen below their amortized cost at the time of review. The Company then assesses whether the decline in value is due to non-credit related or credit related factors. In making its assessment, the Company evaluates the current market and interest rate environment as well as specific issuer information. Generally, a change in a security’s value caused by a change in the market, interest rate or foreign exchange environment does not constitute a credit impairment, but rather a non-credit related decline in fair value. Non-credit related declines in fair value are recorded as unrealized losses in accumulated other comprehensive income (loss). If the Company intends to sell the impaired security or is more likely than not to be required to sell the security before an anticipated recovery in value, the Company records the entire impairment in net gains (losses) on investments in the Company’s consolidated statements of operations and comprehensive income (loss). If the Company determines that the decline is credit related and the Company does not have the intent to sell the security; and it is more likely than not that the Company will not have to sell the security before recovery of its cost basis, the Company establishes a credit allowance equal to the estimated credit loss and is recorded in net gains (losses) on investments in the Company’s consolidated statements of operations and comprehensive income (loss). The determination of credit-related or non-credit-related impairment is first based on an assessment of qualitative factors, which may determine that a qualitative analysis is sufficient to support the conclusion that the present value of expected cash flows equals or exceeds the security’s amortized cost basis. However, if the qualitative assessment suggests a credit loss may exist, a quantitative assessment is performed, and the amount of the allowance for a given security will generally be the difference between a discounted cash flow model and the Company’s carrying value. The Company will adjust the credit allowance account for future changes in credit loss estimates for a security and record this adjustment through net gains (losses) on investments in the Company’s consolidated statements of operations and comprehensive income (loss). Fixed maturity securities designated as held to maturity consist of debt securities for which the Company has both the positive intent and ability to hold to maturity or redemption and are reported at amortized cost, net of the current expected credit loss allowance. Interest income for fixed maturity securities held to maturity is determined in the same manner as interest income for fixed maturity securities available for sale. The Company evaluates fixed maturity securities classified as held to maturity for current expected credit losses utilizing risk characteristics of each security, including credit rating, remaining time to maturity, adjusted for prepayment considerations, and subordination level, and applying default and recovery rates, which include the incorporation of historical credit loss experience and macroeconomic forecasts, to develop an estimate of current expected credit losses. The Company does not create an allowance for uncollectible interest. If interest is not received when due, the interest receivable is immediately reversed and no additional interest is accrued. If future interest is received that has not been accrued, it is recorded as income at that time. The Company’s assessments are based on the issuers’ current and expected future financial position, timeliness with respect to interest and/or principal payments, speed of repayments and any applicable credit enhancements or breakeven constant default rates on mortgage-backed and asset-backed securities, as well as relevant information provided by rating agencies, investment advisors and analysts. Retrospective adjustments are employed to recalculate the values of asset-backed securities. All of the Company’s asset-backed and mortgage-backed securities have a pass-through structure. Each acquisition lot is reviewed to recalculate the effective yield. The recalculated effective yield is used to derive a book value as if the new yield were applied at the time of acquisition. Outstanding principal factors from the time of acquisition to the adjustment date are used to calculate the prepayment history for all applicable securities. Conditional prepayment rates, computed with life to date factor histories and weighted average maturities, are used in the calculation of projected prepayments for pass-through security types. For equity securities, the Company reflects changes in fair value as net gains (losses) on investments. Interest income on all fixed maturities and dividend income on all equity securities are included as part of net investment income in the consolidated statements of operations and comprehensive income (loss). Short-term investments comprise securities due to mature within one year from the date of purchase and are stated at cost, which approximates fair value. Realized gains or losses on sales of investments are determined on the basis of identified cost. For some non-publicly traded securities, market prices are determined through the use of pricing models that evaluate securities relative to the U.S. Treasury yield curve, taking into account the issue type, credit quality, and cash flow characteristics of each security. For other non-publicly traded securities, investment managers’ valuation committees will estimate fair value, and in many instances, these fair values are supported with opinions from qualified independent third parties. For publicly traded securities, fair value is based on quoted market prices or valuation models that use observable market inputs. When a sector of the financial markets is inactive or illiquid, the Company may use its own assumptions about future cash flows and risk-adjusted discount rates to determine fair value. Other invested assets include limited partnerships, corporate-owned life insurance (“COLI”), rabbi trusts and other investments. Limited partnerships are accounted for under the equity method of accounting, which can be recorded on a monthly or quarterly lag and are included within net investment income. Corporate-owned life insurance policies are carried at policy cash surrender value and changes in the policy cash surrender value are included within net investment income. Other invested assets, at fair value, are comprised of convertible preferred stock of Everest Preferred International Holdings, Ltd. (“Preferred Holdings”), an affiliated entity. The fair values of the Preferred Holdings convertible preferred stock at December 31, 2023 and December 31, 2022 were determined using a pricing model. Cash includes cash on hand. Restricted cash is included within cash in the consolidated balance sheets and represents amounts held for the benefit of third parties that is legally or contractually restricted as to its withdrawal or usage. Amounts include trust funds set up for the benefit of ceding companies. C. Allowance for Premium Receivable and Reinsurance Recoverables. The Company applies the Current Expected Credit Losses (CECL) methodology for estimating allowances for credit losses. The Company evaluates the recoverability of its premiums and reinsurance recoverable balances and establishes an allowance for estimated uncollectible amounts. Premiums receivable, excluding receivables for losses within a deductible and retrospectively-rated policy premiums, are primarily comprised of premiums due from policyholders/cedents. Balances are considered past due when amounts that have been billed are not collected within contractually stipulated time periods. For these balances, the allowance is estimated based on recent historical credit loss and collection experience, adjusted for current economic conditions and reasonable and supportable forecasts, when appropriate. A portion of the Company's commercial lines business is written with large deductibles or under retrospectively-rated plans. Under some commercial insurance contracts with a large deductible, the Company is obligated to pay the claimant the full amount of the claim and the Company is subsequently reimbursed by the policyholder for the deductible amount. As such, the Company is subject to credit risk until reimbursement is made. Retrospectively-rated policies are policies whereby the ultimate premium is adjusted based on actual losses incurred. Although the premium adjustment feature of a retrospectively-rated policy substantially reduces insurance risk for the Company, it presents credit risk to the Company. The Company’s results of operations could be adversely affected if a significant portion of such policyholders failed to reimburse the Company for the deductible amount or the amount of additional premium owed under retrospectively-rated policies. The Company manages these credit risks through credit analysis, collateral requirements, and oversight. The allowance for receivables for loss within a deductible and retrospectively-rated policy premiums is recorded within other assets in the consolidated balance sheets. The allowance is estimated as the amount of the receivable exposed to loss multiplied by estimated factors for probability of default. The probability of default is assigned based on each policyholder's credit rating, or a rating is estimated if no external rating is available. Credit ratings are reviewed and updated at least annually. The exposure amount is estimated net of collateral and other offsets, considering the nature of the collateral, potential future changes in collateral values, and historical loss information for the type of collateral obtained. The probability of default factors are historical corporate defaults for receivables with similar durations estimated through multiple economic cycles. Credit ratings are forward-looking and consider a variety of economic outcomes. The Company's evaluation of the required allowance for receivables for loss within a deductible and retrospectively-rated policy premiums considers the current economic environment as well as the probability-weighted macroeconomic scenarios. The Company records total credit loss expenses related to premiums receivable in Other underwriting expenses and records credit loss expenses related to deductibles in Incurred losses and loss adjustment expenses in the Company’s consolidated statements of operations and comprehensive income (loss). The allowance for uncollectible reinsurance recoverable reflects management’s best estimate of reinsurance cessions that may be uncollectible in the future due to reinsurers’ unwillingness or inability to pay. The allowance for uncollectible reinsurance recoverable comprises an allowance and an allowance for disputed balances. Based on this analysis, the Company may adjust the allowance for uncollectible reinsurance recoverable or charge off reinsurer balances that are determined to be uncollectible. Due to the inherent uncertainties as to collection and the length of time before reinsurance recoverable become due, it is possible that future adjustments to the Company’s reinsurance recoverable, net of the allowance, could be required, which could have a material adverse effect on the Company’s consolidated results of operations or cash flows in a particular quarter or annual period. The allowance is estimated as the amount of reinsurance recoverable exposed to loss multiplied by estimated factors for the probability of default. The reinsurance recoverable exposed is the amount of reinsurance recoverable net of collateral and other offsets, considering the nature of the collateral, potential future changes in collateral values, and historical loss information for the type of collateral obtained. The probability of default factors are historical insurer and reinsurer defaults for liabilities with similar durations to the reinsured liabilities as estimated through multiple economic cycles. Credit ratings are forward-looking and consider a variety of economic outcomes. The Company's evaluation of the required allowance for reinsurance recoverable considers the current economic environment as well as macroeconomic scenarios. The Company records credit loss expenses related to reinsurance recoverable in Incurred losses and loss adjustment expenses in the Company’s consolidated statements of operations and comprehensive income (loss). Write-offs of reinsurance recoverable and any related allowance are recorded in the period in which the balance is deemed uncollectible. D. Deferred Acquisition Costs. Acquisition costs, consisting principally of commissions and brokerage expenses and certain premium taxes and fees incurred at the time a contract or policy is issued and that vary with and are directly related to the Company’s reinsurance and insurance business, are deferred and amortized over the period in which the related premiums are earned. Deferred acquisition costs are limited to their estimated realizable value by line of business based on the related unearned premiums, anticipated claims and claim expenses and anticipated investment income. E. Reserve for Losses and Loss Adjustment Expenses. The reserve for losses and loss adjustment expenses (“LAE”) is based on individual case estimates and reports received from ceding companies. A provision is included for losses and LAE incurred but not reported (“IBNR”) based on past experience. Provisions are also included for certain potential liabilities, including those relating to asbestos and environmental (“A&E”) exposures, catastrophe exposures, COVID-19 and other exposures, for which liabilities cannot be estimated using traditional reserving techniques. See also Note 3. The reserves are reviewed periodically and any changes in estimates are reflected in earnings in the period the adjustment is made. The Company’s loss and LAE reserves represent management’s best estimate of the ultimate liability. Loss and LAE reserves are presented gross of reinsurance recoverable and incurred losses and LAE are presented net of reinsurance. Accruals for commissions are established for reinsurance contracts that provide for the stated commission percentage to increase or decrease based on the loss experience of the contract. Changes in estimates for such arrangements are recorded as commission expense. Commission accruals for contracts with adjustable features are estimated based on expected loss and LAE. F. Premium Revenues. Written premiums are earned ratably over the periods of the related insurance and reinsurance contracts. Unearned premium reserves are established relative to the unexpired contract period. For reinsurance contracts, such reserves are established based upon reports received from ceding companies or estimated using pro rata methods based on statistical data. Reinstatement premiums represent additional premium recognized and earned at the time a loss event occurs and losses are recorded, most prevalently catastrophe related, when limits have been depleted under the original reinsurance contract and additional coverage is granted. The recognition of reinstatement premiums is based on estimates of loss and LAE, which reflects management’s judgement. Written and earned premiums and the related costs, which have not yet been reported to the Company, are estimated and accrued. Premiums are net of ceded reinsurance. During 2023, the Company refined its premium estimation methodology for its risk attaching reinsurance contracts within its Reinsurance Segment to continue to recognize gross written premium over the term of the treaty, albeit over a different pattern than what was previously used. The refined estimate resulted in an increase of gross written premium for th e twelve months ended December 31, 2023 period and has further aligned the estimation methodology across the reinsurance division globally. This change had no impact on the total written premium to be recognized over the term of the treaty. There was no impact on net earned premium and therefore, no impact on income from continuing operations, net income, or any related per-share amounts. G. Prepaid Reinsurance Premiums. Prepaid reinsurance premiums represent unearned premium reserves ceded to other reinsurers. Prepaid reinsurance premiums for any foreign reinsurers comprising more than 10% of the outstanding balance at December 31, 2023 were collateralized either through collateralized trust arrangements, rights of offset or letters of credit, thereby limiting the credit risk to the Company. H. Income Taxes. The Company and its wholly owned subsidiaries file a consolidated U.S. Corporation Income Tax Return. The Company’s foreign subsidiaries and foreign branches of its U.S. subsidiaries file country and local corporation income tax returns as required. Deferred U.S. federal and foreign income taxes have been recorded to recognize the tax effect of temporary differences between the GAAP and income tax basis of assets and liabilities, which arise because of differences between the financial reporting and income tax rules. As an accounting policy, the Company has adopted the aggregate portfolio approach for releasing disproportionate income tax effects from Accumulated Other Comprehensive Income. I. Foreign Currency. The Company transacts business in numerous currencies through business units located around the world. The functional currency for each business unit is determined by the local currency used for most economic activity in that area. Movements in exchange rates related to transactions in currencies other than a business unit’s functional currency for monetary assets and liabilities are measured through the consolidated statements of operations and comprehensive income (loss) in other income (expense), except for currency movements related to available for sale fixed maturity securities, which are excluded from net income (loss) and accumulated in stockholder’s equity, net of deferred taxes. The business units’ functional currency financial statements are translated to the Company’s reporting currency, U.S. dollars, using the exchange rates at the end of period for the balance sheets and the average exchange rates in effect for the reporting period for the statements of operations. Gains and losses resulting from translating the foreign currency financial statements, net of deferred income taxes, are excluded from net income (loss) and accumulated as a separate component of other comprehensive income (loss) in stockholder’s equity. J. Segmentation. The Company, through its subsidiaries, operates in two segments: Reinsurance and Insurance. During the fourth quarter of 2023, the Company revised the classification and presentation of certain products related to its accident and health business within the segment groupings. These products have been realigned from within the Reinsurance segment to the Insurance segment to appropriately reflect how the business segments are managed. These changes have been reflected retrospectively. See also Note 6. K. Recent Accounting Pronouncements. Adoption of New Accounting Standards The Company did not adopt any new accounting standards that had a material impact in 2023. Future Adoption of Recently Issued Accounting Standards The Company assessed the adoption impacts of recently issued accounting standards that are affective after 2023 by the Financial Accounting Standards Board on the Company’s consolidated financial statements. Additionally, the Company assessed whether there have been material updates to previously issued accounting standards that are effective after 2023 . There were no accounting standards identified, other than those directly reference below, that are expected to have a material impact to Holdings. Improvements to Income Tax Disclosures. In December 2023, the Financial Accounting Standards Board issued Accounting Standard Update No. 2023-09, which requires expanded income tax disclosures, including the disaggregation of existing disclosures related to the tax rate reconciliation and income taxes paid. The guidance is effective for annual periods beginning after December 15, 2024. Prospective application is required, with retrospective application permitted. The Company is currently evaluating the effect the updated guidance will have on the Company's financial statement disclosures. |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS The following tables show amortized cost, allowance for credit losses, gross unrealized appreciation, gross unrealized depreciation (“URA(D)”) and fair value of fixed maturity securities - available for sale for the periods indicated: At December 31, 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 $ 265 $ — $ — $ (17) $ 247 Obligations of U.S. states and political subdivisions 138 — 1 (11) 128 Corporate securities 4,400 (47) 96 (160) 4,289 Asset-backed securities 5,307 — 23 (48) 5,282 Mortgage-backed securities Commercial 575 — — (53) 522 Agency residential 2,532 — 27 (124) 2,435 Non-agency residential 429 — 14 (1) 441 Foreign government securities 859 — 15 (39) 835 Foreign corporate securities 1,800 — 35 (82) 1,753 Total fixed maturity securities - available for sale $ 16,304 $ (48) $ 212 $ (536) $ 15,932 (Some amounts may not reconcile due to rounding.) At December 31, 2022 (Dollars in millions) Amortized 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 table shows amortized cost, allowance for credit losses, gross URA(D) and fair value of fixed maturity securities - held to maturity for the periods indicated: At December 31, 2023 (Dollars in millions) Amortized Allowances for Unrealized Unrealized Fair Fixed maturity securities - held to maturity Corporate securities $ 150 $ (2) $ 1 $ (3) $ 146 Asset-backed securities 604 (5) 4 (10) 593 Mortgage-backed securities Commercial 21 — — — 21 Foreign corporate securities 84 (1) 7 — 90 Total fixed maturity securities - held to maturity $ 859 $ (8) $ 12 $ (13) $ 850 (Some amounts may not reconcile due to rounding.) 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 December 31, 2023 At December 31, 2022 (Dollars in millions) Amortized Fair Amortized Fair Fixed maturity securities – available for sale Due in one year or less $ 546 $ 537 $ 581 $ 563 Due after one year through five years 2,402 2,310 3,684 3,429 Due after five years through ten years 2,842 2,784 2,003 1,760 Due after ten years 1,672 1,621 958 827 Asset-backed securities 5,307 5,282 4,111 3,951 Mortgage-backed securities Commercial 575 522 569 509 Agency residential 2,532 2,435 1,792 1,628 Non-agency residential 429 441 3 3 Total fixed maturity securities - available for sale $ 16,304 $ 15,932 $ 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 December 31, 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 59 58 63 61 Due after five years through ten years 43 42 43 41 Due after ten years 127 131 68 65 Asset-backed securities 604 593 634 614 Mortgage-backed securities Commercial 21 21 7 7 Total fixed maturity securities - held to maturity $ 859 $ 850 $ 820 $ 793 (Some amounts may not reconcile due to rounding.) During 2022, the Company re-designated a portion of its fixed maturity securities from its fixed maturity - available for sale portfolio to its fixed maturity - held to maturity portfolio. The fair value of the securities reclassified at the date of transfer was $722 million, net of allowance for current expected credit losses, which was subsequently recognized as the new amortized cost basis. As of December 31, 2023, $42 million of unrealized loss from the date of the re-designation remained in accumulated other comprehensive income on the balance sheet and will be amortized into income through an adjustment to the yields of the underlying securities over the remaining life of the securities. The fair values of these securities incorporate the use of significant unobservable inputs and therefore are classified as Level 3 within the fair value hierarchy. The Company evaluated fixed maturity securities classified as held to maturity for current expected credit losses as of December 31, 2023 utilizing risk characteristics of each security, including credit rating, remaining time to maturity, adjusted for prepayment considerations, and subordination level, and applying default and recovery rates, which include the incorporation of historical credit loss experience and macroeconomic forecasts, to develop an estimate of current expected credit losses. These fixed maturities classified as held to maturity are of a high credit quality and are all rated investment grade as of December 31, 2023. The changes in net URA(D) for the Company’s investments are as follows: Years Ended December 31, (Dollars in millions) 2023 2022 Increase (decrease) during the period between the fair value and cost of investments carried at fair value, and deferred taxes thereon: Fixed maturity securities - available fore sale and short-term investments $ 667 $ (1,187) Change in unrealized appreciation (depreciation), pre-tax 667 (1,187) Deferred tax benefit (expense) (140) 249 Change in URA(D), net of deferred taxes, included in stockholder's equity $ 527 $ (938) (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, 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 $ 7 $ — $ 238 $ (17) $ 245 $ (17) Obligations of U.S. states and political subdivisions 3 — 74 (11) 77 (11) Corporate securities 673 (47) 1,150 (112) 1,822 (160) Asset-backed securities 179 (2) 1,958 (46) 2,138 (48) Mortgage-backed securities Commercial 19 — 491 (53) 511 (53) Agency residential 203 (2) 1,030 (123) 1,233 (124) Non-agency residential 125 (1) 3 — 128 (1) Foreign government securities 38 (1) 423 (38) 461 (39) Foreign corporate securities 120 (2) 821 (80) 940 (82) Total $ 1,367 $ (54) $ 6,187 $ (481) $ 7,554 $ (536) Securities where an allowance for credit loss was recorded 2 (1) — — 2 (1) Total fixed maturity securities - available for sale $ 1,369 $ (55) $ 6,187 $ (481) $ 7,556 $ (536) (Some amounts may not reconcile due to rounding.) Duration of Unrealized Loss at December 31, 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 $ 84 $ (1) $ 263 $ (10) $ 348 $ (11) Due in one year through five years 227 (5) 1,317 (96) 1,544 (101) Due in five years through ten years 150 (5) 951 (128) 1,101 (133) Due after ten years 379 (39) 174 (25) 553 (64) Asset-backed securities 179 (2) 1,958 (46) 2,138 (48) Mortgage-backed securities 347 (3) 1,523 (176) 1,871 (179) Total $ 1,367 $ (54) $ 6,187 $ (481) $ 7,554 $ (536) Securities where an allowance for credit loss was recorded 2 (1) — — 2 (1) Total fixed maturity securities - available for sale $ 1,369 $ (55) $ 6,187 $ (481) $ 7,556 $ (536) (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, 2023 were $7.6 billion and $536 million, respectively. The fair value of securities for the single issuer (the United States government) whose securities comprised the largest unrealized loss position at December 31, 2023, did not exceed 1.4% 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 0.5% of the Company’s fixed maturity securities. In addition, as indicated on the above table, there was no significant concentration of unrealized losses in any one market sector. The $55 million of unrealized losses related to fixed maturity securities available for sale that have been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate securities, foreign government securities, asset-backed securities as well as commercial and agency residential mortgage-backed securities. Of these unrealized losses, $39 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. The $481 million of unrealized losses related to fixed maturity securities available for sale in an unrealized loss position for more than one year related primarily to domestic and foreign corporate securities as well as agency residential mortgage backed securities. Of these unrealized losses $455 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 December 31, 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 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 single issuer (the United States government) whose securities comprised the largest unrealized loss position at December 31, 2022, did not exceed 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 that have been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate securities, foreign government securities, asset backed securities and agency residential mortgage backed securities. Of these unrealized losses, $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: Years Ended December 31, (Dollars in millions) 2023 2022 2021 Fixed maturities $ 822 $ 510 $ 344 Equity securities 3 16 15 Short-term investments and cash 74 16 1 Other invested assets Limited partnerships 37 72 321 Dividends from preferred shares of affiliate 31 31 31 Other 59 30 63 Gross investment income before adjustments 1,027 675 774 Funds held interest income (expense) 3 6 8 Interest income from Parent 7 11 6 Gross investment income 1,038 691 788 Investment expenses 46 52 43 Net investment income $ 993 $ 638 $ 745 (Some amounts may not reconcile due to rounding.) The Company records results from limited partnership investments on the equity method of accounting with changes in value reported through net investment income. The net investment income from limited partnerships is dependent upon the Company’s share of the net asset values of interests underlying each limited partnership. Due to the timing of receiving financial information from these partnerships, the results are generally reported on a one month or quarter lag. If the Company determines there has been a significant decline in value of a limited partnership during this lag period, a loss will be recorded in the period in which the Company identifies the decline. The Company had contractual commitments to invest up to an additional $1.0 billion in limited partnerships and private placement loans at December 31, 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 COLI policies, which are invested in debt and equity securities. The COLI policies are carried within other invested assets at the policy cash surrender value of $1.3 billion and $939 million as of December 31, 2023 and December 31, 2022, respectively. Other invested assets, at fair value, as of December 31, 2023 and December 31, 2022, were comprised of preferred shares held in Preferred Holdings, a wholly-owned subsidiary of Group. Variable Interest Entities The Company is engaged with various special purpose entities and other entities that are deemed to be VIEs primarily as an investor through normal investment activities but also as an investment manager. A VIE is an entity that either has investors that lack certain essential characteristics of a controlling financial interest, such as simple majority kick-out rights, or lacks sufficient funds to finance its own activities without financial support provided by other entities. The Company performs ongoing qualitative assessments of its VIEs to determine whether the Company has a controlling financial interest in the VIE and therefore is the primary beneficiary. The Company is deemed to have a controlling financial interest when it has both the ability to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. Based on the Company’s assessment, if it determines it is the primary beneficiary, the Company consolidates the VIE in the Company’s Consolidated Financial Statements. As of December 31, 2023 and 2022, the Company did not hold any securities for which it is the primary beneficiary. 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 December 31, 2023 and 2022 is limited to the total carrying value of $3.3 billion and $2.8 billion, respectively, which are included in general and limited partnerships, COLI policies and other alternative investments in other invested assets in the Company's consolidated balance sheets. As of December 31, 2023, the Company has outstanding commitments totaling $972 million whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. These investments are generally of a passive nature in that the Company does not take an active role in management. In addition, the Company makes passive investments in structured securities issued by VIEs for which the Company is not the manager. These investments are included in asset-backed securities, which includes collateralized loan obligations and are classified as fixed maturities - available for sale. The Company has not provided financial or other support with respect to these investments other than its original investment. For these investments, the Company determined it is not the primary beneficiary due to the relative size of the Company’s investment in comparison to the principal amount of the structured securities issued by the VIEs, the level of credit subordination which reduces the Company’s obligation to absorb losses or right to receive benefits and the Company’s inability to direct the activities that most significantly impact the economic performance of the VIEs. The Company’s maximum exposure to loss on these investments is limited to the amount of the Company’s investment. The components of net gains (losses) on investments are presented in the table below for the periods indicated: Years Ended December 31, (Dollars in millions) 2023 2022 2021 Fixed maturity securities: Allowances for credit losses $ (1) $ (27) $ (26) Net realized gains (losses) from dispositions (192) (79) 8 Gains (losses) from fair value adjustments — — — Equity securities: Net realized gains (losses) from dispositions 8 117 24 Gains (losses) from fair value adjustments (4) (447) 254 Other invested assets — 13 6 Other invested assets, fair value: Gains (losses) from fair value adjustments 9 (558) 234 Short-term investment gains (losses) — — — Total net gains (losses) on investments $ (180) $ (982) $ 501 (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 Twelve Months Ended December 31, 2023 Corporate Asset-Backed Foreign Total (Dollars in millions) Balance, beginning of period $ (45) $ — $ (1) $ (46) Credit losses on securities where credit losses were not previously recorded (23) — — (23) Increases in allowance on previously impaired securities (1) — — (1) Decreases in allowance on previously impaired securities — — — — Reduction in allowance due to disposals 21 — 1 22 Balance, end of period $ (47) $ — $ — $ (48) (Some amounts may not reconcile due to rounding.) Roll Forward of Allowance for Credit Losses - Fixed Maturities - Held to Maturity Twelve Months Ended December 31, 2023 Corporate Asset-Backed Foreign Total (Dollars in millions) Balance, beginning of period $ (2) $ (6) $ (1) $ (9) Credit losses on securities where credit losses were not previously recorded — — — — Increases in allowance on previously impaired securities — — — — Decreases in allowance on previously impaired securities — — — — Reduction in allowance due to disposals — 1 — 1 Balance, end of period $ (2) $ (5) $ (1) $ (8) (Some amounts may not reconcile due to rounding.) Roll Forward of Allowance for Credit Losses - Fixed Maturities - Available for Sale Twelve Months Ended December 31, 2022 Corporate Asset-Backed Foreign Total (Dollars in millions) Balance, beginning of period $ (19) $ (8) $ — $ (27) Credit losses on securities where credit losses were not previously recorded (11) — (1) (12) Increases in allowance on previously impaired securities (20) — — (21) Decreases in allowance on previously impaired securities — — — — Reduction in allowance due to disposals 6 8 1 14 Balance, end of period $ (45) $ — $ (1) $ (46) (Some amounts may not reconcile due to rounding.) Roll Forward of Allowance for Credit Losses - Fixed Maturities - Held to Maturity Twelve Months Ended December 31, 2022 Corporate Asset-Backed Foreign Total (Dollars in millions) Balance, beginning of period $ — $ — $ — $ — Credit losses on securities where credit losses were not previously recorded (2) (6) (1) (9) Increases in allowance on previously impaired securities — — — — Decreases in allowance on previously impaired securities — — — — Reduction in allowance due to disposals — — — — Balance, end of period $ (2) $ (6) $ (1) $ (9) (Some amounts may not reconcile due to rounding.) The proceeds and split between gross gains and losses from sales of fixed maturity securities - available for sale and equity securities, are presented in the table below for the periods indicated: Years Ended December 31, (Dollars in millions) 2023 2022 2021 Proceeds from sales of fixed maturity securities - available for sale $ 2,546 $ 2,645 $ 961 Gross gains from dispositions 12 9 33 Gross losses from dispositions (204) (88) (24) Proceeds from sales of equity securities $ 126 $ 2,203 $ 862 Gross gains from dispositions 8 165 39 Gross losses from dispositions — (48) (15) Securities with a carrying value amount of $1.4 billion at December 31, 2023, were on deposit with or regulated by various state or governmental insurance departments in compliance with insurance laws. See Note 10. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE GAAP guidance regarding fair value measurements address how companies should measure fair value when they are required to use fair value measures for recognition or disclosure purposes under GAAP and provides a common definition of fair value to be used throughout GAAP. It defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly fashion between market participants at the measurement date. In addition, it establishes a three-level valuation hierarchy for the disclosure of fair value measurements. The valuation hierarchy is based on the transparency of inputs to the valuation of an asset or liability. The level in the hierarchy within which a given fair value measurement falls is determined based on the lowest level input that is significant to the measurement, with Level 1 being the highest priority and Level 3 being the lowest priority. The levels in the hierarchy are defined as follows: Level 1: Inputs to the valuation methodology are observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in an active market; Level 2: Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company’s fixed maturity and equity securities are managed both internally and on an external basis by independent, professional investment managers using portfolio guidelines approved by the Company. The Company obtains prices from nationally recognized pricing services. These services seek to utilize market data and observations in their evaluation process. These services use pricing applications that vary by asset class and incorporate available market information and when fixed maturity securities do not trade on a daily basis the services will apply available information through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing. In addition, they use model processes, such as the Option Adjusted Spread model to develop prepayment and interest rate scenarios for securities that have prepayment features. The Company does not make any changes to prices received from the pricing services. In addition, the Company has procedures in place to review the reasonableness of the prices from the service providers and may request verification of the prices. The Company also continually performs quantitative and qualitative analysis of prices, including but not limited to initial and ongoing review of pricing methodologies, review of prices obtained from pricing services and third party investment asset managers, review of pricing statistics and trends, and comparison of prices for certain securities with a secondary price source for reasonableness. No material variances were noted during these price validation procedures. In limited situations, where financial markets are inactive or illiquid, the Company may use its own assumptions about future cash flows and risk-adjusted discount rates to determine fair value. At December 31, 2023, $2.0 billion of fixed maturities were fair valued using unobservable inputs. The majority of these fixed maturities were valued by investment managers’ valuation committees and many of these fair values were substantiated by valuations from independent third parties. The Company has procedures in place to evaluate these independent third party valuations. At December 31, 2022, $1.7 billion of fixed maturities were fair valued using unobservable inputs. Equity securities denominated in U.S. currency with quoted prices in active markets for identical assets are categorized as Level 1 since the quoted prices are directly observable. Equity securities traded on foreign exchanges are categorized as Level 2 due to the added input of a foreign exchange conversion rate to determine fair value. The Company uses foreign currency exchange rates published by a nationally recognized source. Fixed maturity securities listed in the tables have been categorized as Level 2, since a particular security may not have traded but the pricing services are able to use valuation models with observable market inputs such as interest rate yield curves and prices for similar fixed maturity securities in terms of issuer, maturity and seniority. For foreign government securities and foreign corporate securities, the fair values provided by the third party pricing services in local currencies, and where applicable, are converted to U.S. dollars using currency exchange rates from nationally recognized sources. In addition, some of the fixed maturities with fair values categorized as Level 3 result when prices are not available from the nationally recognized pricing services and are obtained from investment managers and are derived using unobservable inputs. The Company will value the securities with unobservable inputs using comparable market information or receive fair values from investment managers. The investment managers may obtain non-binding price quotes for the securities from brokers. The single broker quotes are provided by market makers or broker-dealers who are recognized as market participants in the markets in which they are providing the quotes. The prices received from brokers are reviewed for reasonableness by the third party asset managers and the Company. If the broker quotes are for foreign denominated securities, the quotes are converted to U.S. dollars using currency exchange rates from nationally recognized sources. The fixed maturities with fair values categorized as Level 3 result when prices are not available from the nationally recognized pricing services. The composition and valuation inputs for the presented fixed maturities categories Level 1 and Level 2 are as follows: • U.S. Treasury securities and obligations of U.S. government agencies and corporations are primarily comprised of U.S. Treasury bonds and the fair value is based on observable market inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields; • Obligations of U.S. states and political subdivisions are comprised of state and municipal bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads; • Corporate securities are primarily comprised of U.S. corporate and public utility bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads; • Asset-backed and mortgage-backed securities fair values are based on observable inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields and cash flow models using observable inputs such as prepayment speeds, collateral performance and default spreads; • Foreign government securities are comprised of global non-U.S. sovereign bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source; • Foreign corporate securities are comprised of global non-U.S. corporate bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source. Other invested assets, at fair value, were categorized as Level 3 at December 31, 2023 and December 31, 2022, since it represented a privately placed convertible preferred stock issued by an affiliate. The stock was received in exchange for shares of the Company’s parent. The 25 year redeemable, convertible preferred stock with a 1.75% coupon is valued using a pricing model. The pricing model includes observable inputs such as the U.S. Treasury yield curve rate T note constant maturity 10 year and the swap rate on the Company’s June 1, 2044, 4.868% senior notes, with adjustments to reflect the Company’s own assumptions about the inputs that market participants would use in pricing the asset. The following table presents the fair value measurement levels for all assets, which the Company has recorded at fair value as of the period indicated: Fair Value Measurement Using: (Dollars in millions) December 31, Quoted Prices Significant Significant Assets: Fixed maturities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 247 $ — $ 247 $ — Obligations of U.S. states and political subdivisions 128 — 128 — Corporate securities 4,289 — 3,617 672 Asset-backed securities 5,282 — 3,977 1,305 Mortgage-backed securities Commercial 522 — 522 — Agency residential 2,435 — 2,435 — Non-agency residential 441 — 441 — Foreign government securities 835 — 835 — Foreign corporate securities 1,753 — 1,737 16 Total fixed maturities - available for sale 15,932 — 13,939 1,993 Equity securities, fair value 91 70 21 — Other invested assets, fair value 1,481 — — 1,481 (Some amounts may not reconcile due to rounding.) Fair Value Measurement Using: (Dollars in millions) December 31, 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.) The following table presents the activity under Level 3, fair value measurements using significant unobservable inputs for fixed maturities - available for sale, for the periods indicated: Total Fixed Maturities - Available for Sale December 31, 2023 December 31, 2022 (Dollars in millions) Corporate Asset-Backed CMBS Foreign Total Corporate Asset-Backed CMBS Foreign Total Beginning balance fixed maturities $ 715 $ 994 $ — $ 16 $ 1,725 $ 730 $ 1,251 $ — $ 16 $ 1,997 Total gains or (losses) (realized/unrealized) Included in earnings (or changes in net assets) 4 — — — 4 (24) — — — (24) Included in other comprehensive income (loss) (2) 6 — — 4 3 (35) — (4) (36) Purchases, issuances and settlements (45) 305 — — 260 40 513 6 8 567 Transfers in (out) of Level 3 and reclassification of securities in/(out) investment categories — — — — — (35) (735) (6) (4) (779) Ending balance $ 672 $ 1,305 $ — $ 16 $ 1,993 $ 715 $ 994 $ — $ 16 $ 1,725 The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date $ 9 $ — $ — $ — $ 9 $ (23) $ 8 $ — $ — $ (15) (Some amounts may not reconcile due to rounding.) There were no transfers of assets in/(out) Level 3 during 2023. The $779 million shown as transfers in/(out) of Level 3 and reclassification of securities in/(out) of investment categories for the year ended December 31, 2022 related mainly to previously designated Level 3 securities that the Company had reclassified from “fixed maturities - available for sale” to “fixed maturities - held to maturity” during 2022. As “fixed maturities - held to maturity" are carried at amortized cost, net of credit allowances rather than at fair value as “fixed maturities - available for sale”, these securities are no longer included within the fair value hierarchy table or in the roll forward of Level 3 securities. The fair values of these securities are determined in a similar manner as the Company’s fixed maturity securities available for sale as described above. The fair values of these securities incorporate the use of significant unobservable inputs and therefore are classified as Level 3 within the fair value hierarchy as of December 31, 2022. Financial Instruments Disclosed, But Not Reported, at Fair Value Certain financial instruments disclosed, but not reported, at fair value are excluded from the fair value hierarchy tables above. Fair values of fixed maturity securities - held to maturity, senior notes and long-term subordinated notes can be found within Notes 2, 7 and 8, respectively. Fair values of long-term notes receivable from affiliates can be found within Note 15. Short-term investments are stated at cost, which approximates fair value. See Note 1. Exempt from Fair Value Disclosure Requirements Certain financial instruments are exempt from the requirements for fair value disclosure, such as limited partnerships accounted for under the equity method and pension and other postretirement obligations. The Company’s investment in COLI policies are recorded at their cash surrender value and are therefore not required to be included in the tables above. See Note 1 of the Notes to these Consolidated Financial Statements for details of investments in COLI policies. In addition, $274 million and $292 million of investments within other invested assets on the consolidated balance sheets as of December 31, 2023 and December 31, 2022, respectively, are not included within the fair value hierarchy tables as the assets are measured at net asset value (NAV) as a practical expedient to determine fair value. |
RESERVES FOR LOSSES AND LAE
RESERVES FOR LOSSES AND LAE | 12 Months Ended |
Dec. 31, 2023 | |
Insurance [Abstract] | |
RESERVES FOR LOSSES AND LAE | RESERVES FOR LOSSES AND LAE The following table provides a roll forward of the Company’s beginning and ending reserves for losses and LAE and is summarized for the periods indicated: At December 31, (Dollars in millions) 2023 2022 2021 Gross reserves beginning of period $ 14,977 $ 13,121 $ 11,578 Less reinsurance recoverables on unpaid losses (3,684) (3,651) (3,951) Net reserves beginning of period 11,294 9,470 7,627 Incurred related to: Current year 5,599 5,815 5,382 Prior years (21) 7 5 Total incurred losses and LAE 5,578 5,823 5,387 Paid related to: Current year 1,169 1,097 2,374 Prior years 3,128 2,867 1,127 Total paid losses and LAE 4,298 3,964 3,501 Foreign exchange/translation adjustment 40 (35) (42) Net reserves end of period 12,614 11,294 9,470 Plus reinsurance recoverables on unpaid losses 3,182 3,684 3,651 Gross reserves end of period $ 15,796 $ 14,977 $ 13,121 (Some amounts may not reconcile due to rounding.) Current year incurred losses were $5.6 billion, $5.8 billion and $5.4 billion for the years ended December 31, 2023, 2022 and 2021, respectively. The decrease in current year incurred losses in 2023 compared to 2022 primarily related to a decrease of $642 million in current year catastrophe losses, partially offset by an increase of $426 million in current year attritional losses resulting from the impact of the increase in premiums earned and changes in the mix of business. The increase in current year incurred losses in 2022 compared to 2021 primarily related to an increase of $44 million in current year catastrophe losses and an increase of $389 million in current year attritional losses. The increase in current year attritional losses was mainly due to the growth in premiums earned and $25 million of losses due to the Russia/Ukraine conflict. The recent emergence of the Middle East war and the ongoing war in the Ukraine are evolving events. Economic and legal sanctions have been levied against Russia, specific named individuals and entities connected to the Russian government, as well as businesses located in the Russian Federation and/or owned by Russian nationals in numerous countries, including the United States. The significant political and economic uncertainty surrounding these wars and associated sanctions have impacted economic and investment markets both within Russia, Ukraine, the Middle East region, and around the world. Incurred prior years’ reserves decreased by $21 million in 2023 and increased by $7 million and $5 million in 2022 and 2021, respectively. The net favorable development on prior year reserves of $21 million in 2023 is comprised of $351 million of favorable development on prior years attritional losses for reinsurance lines, mainly related to mortgage and short-tail lines of business, which is offset by $352 million of unfavorable development on prior years attritional losses for insurance lines, mainly related to casualty lines for accident years from 2016 through 2019. The prior year development also includes $37 million of commutations from stop loss agreements between Everest Re and Bermuda Re that are embedded within the Reinsurance Segment’s net favorable development on prior year attritional losses. Additionally, there was $22 million of favorable development on prior year catastrophe losses. The 2022 prior year development was primarily due to $113 million of strengthening of asbestos reserves mitigated primarily by reserve releases from the reinsurance segment. The increase for 2021 related mainly to increases in insurance casualty reserves. The following is information about incurred and paid claims development as of December 31, 2023, net of reinsurance, as well as cumulative claim frequency and the total of incurred but not reported liabilities (IBNR) plus expected development on reported claims included within the net incurred claims amounts. Each of the Company’s financial reporting segments has been disaggregated into casualty and property business. The casualty and property segregation results in groups that have homogeneous loss development characteristics and are large enough to represent credible trends. Generally, casualty claims take longer to be reported and settled, resulting in longer payout patterns and increased volatility. Property claims on the other hand, tend to be reported and settled quicker and therefore tend to exhibit less volatility. The property business is more exposed to catastrophe losses, which can result in year over year fluctuations in incurred claims depending on the frequency and severity of catastrophes claims in any one accident year. The information about incurred and paid claims development for the years ended December 31, 2014 to December 31, 2022 is presented as supplementary information. The Cumulative Number of Reported Claims is shown only for Insurance Casualty as it is impractical to provide the information for the remaining groups. The reinsurance groups each include pro rata contracts for which ceding companies provide only summary information via a bordereau. This summary information does not include the number of reported claims underlying the paid and reported losses. Therefore, it is not possible to provide this information. The Insurance Property group includes Accident & Health insurance business. This business is written via a master contract and individual claim counts are not provided. This business represents a significant enough portion of the business in the Insurance Property group so that including the number of reported claims for the remaining business would distort any analytics performed on the group. The Cumulative Number of Reported Claims shown for the Insurance Casualty is determined by claim and line of business. For example, a claim event with three claimants in the same line of business is a single claim. However, a claim event with a single claimant that spans two lines of business contributes two claims. Cessions under affiliated quota share agreements reduce net losses but do not impact claim counts. Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Liability for Unpaid Claims and Claim Adjustment Expenses The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated statement of financial position is as follows. At December 31, 2023 (Dollars in millions) Net outstanding liabilities Reinsurance Casualty $ 5,433 Reinsurance Property 3,161 Insurance Casualty 3,310 Insurance Property 493 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance 12,396 Reinsurance recoverable on unpaid claims Reinsurance Casualty 492 Reinsurance Property 816 Insurance Casualty 1,695 Insurance Property 179 Total reinsurance recoverable on unpaid claims 3,182 Unallocated claims adjustment expenses 184 Other 33 218 Total gross liability for unpaid claims and claim adjustment expense $ 15,796 (Some amounts may not reconcile due to rounding.) The following tables present the incurred loss and ALAE and the paid loss and ALAE, net of reinsurance for casualty and property, as well as the average annual percentage payout of incurred claims by age, net of reinsurance for each of our disclosed lines of business. Reinsurance - Casualty Business At December 31, 2023 Total of Cumulative Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Accident (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (Dollars in millions) 2014 $ 341 $ 327 $ 258 $ 229 $ 229 $ 229 $ 229 $ 229 $ 229 $ 229 — N/A 2015 294 250 238 238 238 238 238 238 238 6 N/A 2016 243 239 239 239 239 239 239 239 18 N/A 2017 198 204 204 204 204 204 204 50 N/A 2018 814 799 845 867 919 1,029 115 N/A 2019 1,009 1,057 1,058 1,073 1,109 285 N/A 2020 1,085 1,057 1,026 1,017 373 N/A 2021 1,358 1,351 1,309 693 N/A 2022 1,331 1,290 912 N/A 2023 1,634 1,283 N/A $ 8,299 (Some amounts may not reconcile due to rounding.) Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Accident Year (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (Dollars in millions) 2014 $ 15 $ 36 $ 77 $ 107 $ 145 $ 175 $ 184 $ 188 $ 211 $ 216 2015 16 39 86 147 168 188 194 209 216 2016 18 54 89 143 161 187 214 220 2017 27 87 110 123 150 180 187 2018 132 200 318 415 473 510 2019 165 265 381 487 531 2020 146 237 334 447 2021 156 230 377 2022 105 222 2023 175 $ 3,101 All outstanding liabilities prior to 2014, net of reinsurance 235 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 5,433 (Some amounts may not reconcile due to rounding.) Average Annual Percentage Payout of Incurred Loss by Age, Net of Reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Casualty 11.5 % 8.9 % 11.6 % 11.7 % 6.8 % 7.3 % 5.5 % 3.6 % 6.3 % 2.0 % Reinsurance - Property Business At December 31, 2023 Total of Cumulative Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Accident (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (Dollars in millions) 2014 $ 715 $ 527 $ 369 $ 339 $ 340 $ 340 $ 340 $ 340 $ 340 $ 340 3 N/A 2015 640 341 311 311 311 311 311 311 311 1 N/A 2016 612 631 632 628 627 627 627 628 2 N/A 2017 1,262 1,847 2,015 2,109 2,162 2,200 2,203 2 N/A 2018 2,214 2,103 2,093 2,041 2,011 1,982 (1) N/A 2019 1,658 1,664 1,591 1,486 1,479 (7) N/A 2020 1,843 1,887 1,827 1,805 23 N/A 2021 2,140 2,126 2,068 87 N/A 2022 2,535 2,223 549 N/A 2023 1,958 980 N/A $ 14,996 (Some amounts may not reconcile due to rounding.) Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Accident (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (Dollars in millions) 2014 $ 145 $ 222 $ 273 $ 301 $ 317 $ 319 $ 323 $ 325 $ 332 $ 339 2015 148 213 261 276 282 287 291 300 314 2016 223 475 569 575 580 582 592 603 2017 773 1,529 1,887 2,011 2,105 2,181 2,219 2018 470 1,358 1,652 1,808 1,866 1,909 2019 656 1,016 1,258 1,376 1,472 2020 528 1,100 1,408 1,590 2021 625 1,274 1,634 2022 548 1,209 2023 525 $ 11,815 All outstanding liabilities prior to 2014, net of reinsurance (20) Liabilities for claims and claim adjustment expenses, net of reinsurance $ 3,161 (Some amounts may not reconcile due to rounding.) Average Annual Percentage Payout of Incurred Loss by Age, Net of Reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Property 30.9 % 32.8 % 16.2 % 7.2 % 3.9 % 2.4 % 1.6 % 1.7 % 3.3 % 1.9 % Insurance - Casualty Business At December 31, 2023 Total of Cumulative Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Accident (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (Dollars in millions) 2014 $ 238 $ 239 $ 241 $ 255 $ 255 $ 255 $ 256 $ 256 $ 256 $ 256 1 24,779 2015 259 259 277 277 277 266 266 269 278 4 26,300 2016 351 276 279 281 288 287 281 281 — 30,606 2017 304 237 238 237 236 232 235 — 34,567 2018 645 644 666 689 698 793 135 35,301 2019 768 756 794 814 996 194 39,356 2020 817 792 793 841 287 38,099 2021 1,112 1,112 1,106 457 44,387 2022 1,039 1,054 450 45,829 2023 1,236 620 36,309 $ 7,076 (Some amounts may not reconcile due to rounding.) Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Accident (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (Dollars in millions) 2014 $ 20 $ 72 $ 114 $ 144 $ 229 $ 229 $ 250 $ 253 $ 254 $ 255 2015 20 68 117 199 244 259 263 266 270 2016 25 101 276 299 308 313 318 321 2017 23 151 157 217 233 239 243 2018 63 189 271 383 435 476 2019 11 217 350 489 598 2020 82 209 340 448 2021 201 339 521 2022 222 470 2023 193 $ 3,793 All outstanding liabilities prior to 2014, net of reinsurance 27 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 3,310 (Some amounts may not reconcile due to rounding.) Average Annual Percentage Payout of Incurred Loss by Age, Net of Reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Casualty 12.1 % 19.7 % 16.7 % 15.0 % 11.1 % 3.6 % 3.2 % 1.1 % 0.9 % 0.2 % Insurance - Property Business At December 31, 2023 Total of Cumulative Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Accident Year (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (Dollars in millions) 2014 $ 76 $ 89 $ 84 $ 82 $ 82 $ 82 $ 82 $ 82 $ 82 $ 82 — N/A 2015 96 93 93 92 95 107 107 103 95 — N/A 2016 150 186 180 177 175 174 181 181 — N/A 2017 233 300 303 309 322 332 329 — N/A 2018 382 380 392 390 395 402 5 N/A 2019 350 367 359 365 378 7 N/A 2020 524 523 513 478 24 N/A 2021 557 550 578 31 N/A 2022 708 711 115 N/A 2023 638 164 N/A $ 3,872 (Some amounts may not reconcile due to rounding.) Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Accident (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (Dollars in millions) 2014 $ 45 $ 77 $ 81 $ 81 $ 82 $ 82 $ 82 $ 82 $ 82 $ 82 2015 51 82 91 91 91 94 94 94 95 2016 78 162 180 175 178 180 180 181 2017 164 298 287 305 321 329 329 2018 238 349 376 388 391 396 2019 224 346 357 364 367 2020 271 374 395 453 2021 361 515 537 2022 390 548 2023 391 $ 3,379 All outstanding liabilities prior to 2014, net of reinsurance — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 493 (Some amounts may not reconcile due to rounding.) Average Annual Percentage Payout of Incurred Loss by Age, Net of Reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Property 57.1 % 29.8 % 4.0 % 4.7 % 1.8 % 1.6 % 0.2 % 0.7 % 0.2 % 0.1 % Reserving Methodology The Company maintains reserves equal to our estimated ultimate liability for losses and loss adjustment expense (LAE) for reported and unreported claims for our insurance and reinsurance businesses. Because reserves are based on estimates of ultimate losses and LAE by underwriting or accident year, the Company uses a variety of statistical and actuarial techniques to monitor reserve adequacy over time, evaluate new information as it becomes known, and adjust reserves whenever an adjustment appears warranted. The Company considers many factors when setting reserves including: (1) exposure base and projected ultimate premium; (2) expected loss ratios by product and class of business, which are developed collaboratively by underwriters and actuaries; (3) actuarial methodologies and assumptions which analyze loss reporting and payment experience, reports from ceding companies and historical trends, such as reserving patterns, loss payments, and product mix; (4) current legal interpretations of coverage and liability; and (5) economic conditions. Management’s best estimate is developed through collaboration with actuarial, underwriting, claims, legal and finance departments and culminates with the input of reserve committees. Each segment reserve committee includes the participation of the relevant parties from actuarial, finance, claims and segment senior management and has the responsibility for recommending and approving management’s best estimate. Reserves are further reviewed by Everest’s Chief Reserving Actuary and senior management. The objective of such process is to determine a single best estimate viewed by management to be the best estimate of its ultimate loss liability. Actual loss and LAE ultimately paid may deviate, perhaps substantially, from such reserves. Net income will be impacted in a period in which the change in estimated ultimate loss and LAE is recorded. The detailed data required to evaluate ultimate losses for the Company’s insurance business is accumulated from its underwriting and claim systems. Reserving for reinsurance requires evaluation of loss information received from ceding companies. Ceding companies report losses in many forms depending on the type of contract and the agreed or contractual reporting requirements. Generally, pro rata contracts require the submission of a monthly/quarterly account, which includes premium and loss activity for the period with corresponding reserves as established by the ceding company. This information is recorded into the Company’s records. For certain pro rata contracts, the Company may require a detailed loss report for claims that exceed a certain dollar threshold or relate to a particular type of loss. Excess of loss and facultative contracts generally require individual loss reporting with precautionary notices provided when a loss reaches a significant percentage of the attachment point of the contract or when certain causes of loss or types of injury occur. Experienced Claims staff handle individual loss reports and supporting claim information. Based on evaluation of a claim, the Company may establish additional case reserves in addition to the case reserves reported by the ceding company. To ensure ceding companies are submitting required and accurate data, Everest’s Underwriting, Claim, Reinsurance Accounting, and Internal Audit Departments perform various reviews of ceding companies, particularly larger ceding companies, including on-site audits of domestic ceding companies. The Company segments both reinsurance and insurance reserves into exposure groupings for actuarial analysis. The Company assigns business to exposure groupings so that the underlying exposures have reasonably homogeneous loss development characteristics and are large enough to facilitate credible estimation of ultimate losses. The Company periodically reviews its exposure groupings and may change groupings over time as business changes. The Company currently uses approximately 200 exposure groupings to develop reserve estimates. One of the key selection characteristics for the exposure groupings is the historical duration of the claims settlement process. Business in which claims are reported and settled relatively quickly are commonly referred to as short tail lines, principally property lines. On the other hand, casualty claims tend to take longer to be reported and settled and casualty lines are generally referred to as long tail lines. Estimates of ultimate losses for shorter tail lines, with the exception of loss estimates for large catastrophic events, generally exhibit less volatility than those for the longer tail lines. The Company uses a variety of actuarial methodologies, such as the expected loss ratio method, chain ladder methods, and Bornhuetter-Ferguson methods, supplemented by judgment where appropriate, to estimate ultimate loss and LAE for each exposure group. Expected Loss Ratio Method: The expected loss ratio method uses earned premium times an expected loss ratio to calculate ultimate losses for a given underwriting or accident year. This method relies entirely on expectation to project ultimate losses with no consideration given to actual losses. As such, it may be appropriate for an immature underwriting or accident year where few, if any, losses have been reported or paid, but less appropriate for a more mature year. Chain Ladder Method: Chain ladder methods use a standard loss development triangle to project ultimate losses. Age-to-age development factors are selected for each development period and combined to calculate age-to-ultimate development factors which are then applied to paid or reported losses to project ultimate losses. This method relies entirely on actual paid or reported losses to project ultimate losses. No other factors such as changes in pricing or other expectations are taken into account. It is most appropriate for groups with homogeneous, stable experience where past development patterns are expected to continue in the future. It is least appropriate for groups which have changed significantly over time or which are more volatile. Bornhuetter-Ferguson Method: The Bornhuetter-Ferguson method is a combination of the expected loss ratio method and the chain ladder method. Ultimate losses are projected based partly on actual paid or reported losses and partly on expectation. Incurred but not reported (IBNR) reserves are calculated using earned premium, an a priori loss ratio, and selected age-to-age development factors and added to actual reported (paid) losses to determine ultimate losses. It is more responsive to actual reported or paid development than the expected loss ratio method but less responsive than the chain ladder method. The reliability of the method depends on the accuracy of the selected a priori loss ratio. Although the Company uses similar actuarial methods for both short tail and long tail lines, the faster reporting of experience for the short tail lines allows the Company to have greater confidence in its estimates of ultimate losses for short tail lines at an earlier stage than for long tail lines. As a result, the Company utilizes, as well, exposure-based methods to estimate its ultimate losses for longer tail lines, especially for immature underwriting or accident years. For both short and long tail lines, the Company supplements these general approaches with analytically based judgments. Key actuarial assumptions contain no explicit provisions for reserve uncertainty nor do we supplement the actuarially determined reserves for uncertainty. Carried reserves at each reporting date are the Company’s best estimate of ultimate unpaid losses and LAE at that date. The Company completes detailed reserve studies for each exposure group annually for both reinsurance and insurance operations. The completed annual reserve studies are “rolled-forward” for each accounting period until the subsequent reserve study is completed. Analyzing the roll-forward process involves comparing actual reported losses to expected losses based on the most recent reserve study. The Company analyzes significant variances between actual and expected losses and post adjustments to its reserves as warranted. Certain reserves, including losses from widespread catastrophic events and COVID-19 related losses, cannot be estimated using traditional actuarial methods. These types of events are reserved for separately using a variety of statistical and actuarial techniques. We estimate losses for these types of events based on information derived from catastrophe models, quantitative and qualitative exposure analyses, reports and communications from ceding companies and development patterns for historically similar events, where available. The Company continues to receive claims under expired insurance and reinsurance contracts asserting injuries and/or damages relating to or resulting from environmental pollution and hazardous substances, including asbestos. Environmental claims typically assert liability for (a) the mitigation or remediation of environmental contamination or (b) bodily injury or property damage caused by the release of hazardous substances into the land, air or water. Asbestos claims typically assert liability for bodily injury from exposure to asbestos or for property damage resulting from asbestos or products containing asbestos. The Company’s reserves include an estimate of the Company’s ultimate liability for A&E claims. The Company’s A&E liabilities emanate from direct insurance business and Everest Re’s assumed reinsurance business. All of the contracts of insurance and reinsurance, under which the Company has received claims during the past three years, expired more than 20 years ago. There are significant uncertainties surrounding the Company’s reserves for its A&E losses. A&E exposures represent a separate exposure group for monitoring and evaluating reserve adequacy. The following table summarizes incurred losses with respect to A&E reserves on both a gross and net of reinsurance basis for the periods indicated: At December 31, (Dollars in millions) 2023 2022 2021 Gross basis: Beginning of period reserves $ 278 $ 175 $ 219 Incurred losses — 144 11 Paid losses (31) (42) (55) End of period reserves $ 246 $ 278 $ 175 Net basis: Beginning of period reserves $ 210 $ 128 $ 167 Incurred losses — 113 (3) Paid losses (21) (32) (36) End of period reserves $ 189 $ 210 $ 128 Reinsurance Recoverables . Reinsurance recoverables for both paid and unpaid losses totaled $3.4 billion and $3.8 billion at December 31, 2023 and 2022, respectively. At December 31, 2023, $1.5 billion, or 45.8%, was receivable from Everest Reinsurance (Bermuda), Ltd. (“Bermuda Re”), an affiliated entity, and is fully collateralized by a trust agreement and $285 million, or 8.5%, was receivable from Mt. Logan Re Ltd. (Bermuda) (“Mt. Logan Re”) collateralized segregated accounts. No other retrocessionaire accounted for more than 5% of reinsurance receivables. |
REINSURANCE
REINSURANCE | 12 Months Ended |
Dec. 31, 2023 | |
Reinsurance Disclosures [Abstract] | |
REINSURANCE | REINSURANCE The Company utilizes reinsurance agreements to reduce its exposure to large claims and catastrophic loss occurrences. These agreements provide for recovery from reinsurers of a portion of losses and LAE under certain circumstances without relieving the Company of its underlying obligations to the policyholders. Losses and LAE incurred and premiums earned are reported after deduction for reinsurance. In the event that one or more of the reinsurers were unable to meet their obligations under these reinsurance agreements, the Company would not realize the full value of the reinsurance recoverables balances. The Company's procedures include carefully selecting its reinsurers, structuring agreements to provide collateral funds where necessary, and regularly monitoring the financial condition and ratings of its reinsurers. Reinsurance recoverable include balances due from reinsurance companies and are presented net of an allowance for uncollectible reinsurance. Reinsurance recoverables include an estimate of the amount of gross losses and loss adjustment expense reserves that may be ceded under the terms of the reinsurance agreements, including incurred but not reported unpaid losses. The Company’s estimate of losses and loss adjustment expense reserves ceded to reinsurers is based on assumptions that are consistent with those used in establishing the gross reserves for amounts the Company owes to its claimants. The Company estimates its ceded reinsurance recoverable based on the terms of any applicable facultative and treaty reinsurance, including an estimate of how incurred but not reported losses will ultimately be ceded under reinsurance agreements. Accordingly, the Company’s estimate of reinsurance recoverables is subject to similar risks and uncertainties as the estimate of the gross reserve for unpaid losses and loss adjustment expenses. The Company may hold partial collateral, including letters of credit and funds held, under these agreements. See also Note 1C, Note 4 and Note 10. Balances are considered past due when amounts that have been billed are not collected within contractually stipulated time periods, generally 30, 60 or 90 days. To manage reinsurer credit risk, a reinsurance security review committee evaluates the credit standing, financial performance, management and operational quality of each potential reinsurer. In placing reinsurance, the Company considers the nature of the risk reinsured, including the expected liability payout duration, and establishes limits tiered by reinsurer credit rating. Where its contracts permit, the Company secures future claim obligations with various forms of collateral or other credit enhancement, including irrevocable letters of credit, secured trusts, funds held accounts and group wide offsets. See Note 1C for discussion of allowance on reinsurance recoverables. Insurance companies, including reinsurers, are regulated and hold risk-based capital to mitigate the risk of loss due to economic factors and other risks. Non-U.S. reinsurers are either subject to a capital regime substantively equivalent to domestic insurers or we hold collateral to support collection of reinsurance receivable. As a result, there is limited history of losses from insurer defaults. Premiums written and earned and incurred losses and LAE are comprised of the following for the periods indicated: Years Ended December 31, (Dollars in millions) 2023 2022 2021 Written premiums: Direct $ 3,785 $ 3,701 $ 3,300 Assumed 7,332 5,975 6,031 Ceded (1,905) (1,645) (1,612) Net written premiums $ 9,212 $ 8,032 $ 7,719 Premiums earned: Direct $ 3,709 $ 3,544 $ 2,982 Assumed 6,705 5,945 5,741 Ceded (1,878) (1,613) (1,544) Net premiums earned $ 8,536 $ 7,876 $ 7,179 Incurred losses and LAE: Direct $ 2,594 $ 2,423 $ 2,043 Assumed 3,449 4,107 3,872 Ceded (465) (708) (528) Net incurred losses and LAE $ 5,578 $ 5,823 $ 5,387 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 ("whole account quota share") for all new and renewal business for the indicated coverage period: (Dollars in millions) Coverage Period Ceding Company Percent Assuming Type of Business Single Aggregate 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) 0 01/01/2011-12/31/2011 Everest Re- Canadian Branch 60.0 % Bermuda Re Property Business 350 (1) 0 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 - 0 01/01/2020 Everest International Assurance 100.0 % Bermuda Re Life Business - 0 (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, 2024. The stop loss agreements between Everest Re and Bermuda Re that were effective for 2018 and 2019 were both commuted during the third quarter of 2023. The commutations of the agreements resulted in the recognition of an aggregate loss of $37 million for Everest Re. The impact of the commutations are embedded within the Reinsurance Segment’s net favorable development on prior year attritional losses. 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 £100 million of reinsurance coverage for each catastrophe occurrence above £24 million. Bermuda Re (UK Branch) paid Everest Re £5 million for this coverage. This agreement was most recently renewed effective January 1, 2024. Everest Re entered into a catastrophe excess of loss reinsurance contract with Ireland Re, effective February 1, 2021 through January 31, 2022. The contract provides Ireland Re with up to €210 million of reinsurance coverage for each catastrophe occurrence above €18 million. Ireland Re paid Everest Re €14 million for this coverage. This agreement was most recently renewed effective February 1, 2024. Everest Re entered into a catastrophe excess of loss reinsurance contract with Ireland Re, effective March 31, 2023 through January 31, 2024. The contract provides Ireland Re with up to €61 million of reinsurance coverage for each catastrophe occurrence above €139 million. Ireland Re paid Everest Re €2 million for this coverage. This agreement was not renewed for 2024. 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 Transferring Assuming % of Business or Covered Period 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 December 31, 2023, and December 31, 2022, the Company has a reinsurance recoverable of $807 million and $804 million, respectively, recorded on its balance sheet due from Bermuda Re. The following tables summarize the significant premiums and losses ceded and assumed by the Company in transactions with affiliated entities for the periods indicated: Bermuda Re Years Ended December 31, (Dollars in millions) 2023 2022 2021 Ceded written premiums $ 432 $ 372 $ 303 Ceded earned premiums 431 371 300 Ceded losses and LAE (15) (16) (59) Assumed written premiums 4 3 5 Assumed earned premiums 4 5 4 Ireland Re Years Ended December 31, (Dollars in millions) 2023 2022 2021 Assumed written premiums $ 13 $ 10 $ 16 Assumed earned premiums 12 10 15 Assumed losses and LAE 2 23 64 Ireland Insurance Years Ended December 31, (Dollars in millions) 2023 2022 2021 Assumed written premiums $ 14 $ 9 $ 9 Assumed earned premiums 17 8 6 Assumed losses and LAE 7 5 3 In 2013, Group established Mt. Logan Re, which is a Class 3 insurer based in Bermuda. Mt. Logan Re then established separate segregated accounts for its business activity, which invest in a diversified set of catastrophe exposures. The following table summarizes the premiums and losses that are ceded by the Company to Mt. Logan Re segregated accounts: Mt. Logan Re Segregated Accounts Years Ended December 31, (Dollars in millions) 2023 2022 2021 Ceded written premiums $ 210 $ 170 $ 286 Ceded earned premiums 205 174 280 Ceded losses and LAE 31 150 194 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Company operates through two operating segments. The Reinsurance operation writes worldwide property and casualty reinsurance and specialty lines of business, on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies. Business is written in the United States as well as through branches in Canada and Singapore. The Insurance operation writes property and casualty insurance directly and through brokers, including for surplus lines, and general agents within the United States. The two segments are managed independently, but conform with corporate guidelines with respect to pricing, risk management, control of aggregate catastrophe exposures, capital, investments and support operations. Our two operating segments each have executive leadership who are responsible for the overall performance of their respective segments and who are directly accountable to our chief operating decision maker (“CODM”), the Chief Executive Officer of Everest Group, Ltd., who is ultimately responsible for reviewing the business to assess performance, make operating decisions and allocate resources. We report the results of our operations consistent with the manner in which our CODM reviews the business. During the fourth quarter of 2023, the Company revised the classification and presentation of certain products related to its accident and health business within the segment groupings. These products have been realigned from within the Reinsurance segment to the Insurance segment to appropriately reflect how the business segments are managed. These changes have been reflected retrospectively. The Company does not review and evaluate the financial results of its operating segments based upon balance sheet data. Management generally monitors and evaluates the financial performance of these operating segments based upon their underwriting results. Underwriting results include earned premium less losses and LAE incurred, commission and brokerage expenses and other underwriting expenses. We measure our underwriting results using ratios, in particular loss, commission and brokerage and other underwriting expense ratios, which, respectively, divide incurred losses, commissions and brokerage and other underwriting expenses by premiums earned. Management has determined that these measures are appropriate and align with how the business is managed. We continue to evaluate our segments as our business evolves and may further refine our segments and financial performance measures. The following tables present the underwriting results for the operating segments for the periods indicated: Year Ended December 31, 2023 (Dollars in millions) Reinsurance Insurance Total Gross written premiums $ 7,181 $ 3,936 $ 11,117 Net written premiums 6,205 3,007 9,212 Premiums earned $ 5,637 $ 2,900 $ 8,536 Incurred losses and LAE 3,329 2,249 5,578 Commission and brokerage 1,545 306 1,851 Other underwriting expenses 167 407 574 Underwriting gain (loss) $ 596 $ (64) $ 533 Net investment income 993 Net gains (losses) on investments (180) Corporate expenses (18) Interest, fee and bond issue cost amortization expense (134) Other income (expense) (11) Income (loss) before taxes $ 1,181 (Some amounts may not reconcile due to rounding.) Year Ended December 31, 2022 (Dollars in millions) Reinsurance Insurance Total Gross written premiums $ 5,879 $ 3,798 $ 9,677 Net written premiums 5,204 2,828 8,032 Premiums earned $ 5,147 $ 2,729 $ 7,876 Incurred losses and LAE 3,926 1,897 5,823 Commission and brokerage 1,308 325 1,632 Other underwriting expenses 138 364 501 Underwriting gain (loss) $ (224) $ 144 $ (81) Net investment income 638 Net gains (losses) on investments (982) Corporate expenses (26) Interest, fee and bond issue cost amortization expense (101) Other income (expense) (6) Income (loss) before taxes $ (557) (Some amounts may not reconcile due to rounding.) Year Ended December 31, 2021 (Dollars in millions) Reinsurance Insurance Total Gross written premiums $ 5,979 $ 3,352 $ 9,331 Net written premiums 5,217 2,503 7,719 Premiums earned $ 4,899 $ 2,279 $ 7,179 Incurred losses and LAE 3,750 1,637 5,387 Commission and brokerage 1,229 284 1,513 Other underwriting expenses 142 312 454 Underwriting gain (loss) $ (220) $ 46 $ (175) Net investment income 745 Net gains (losses) on investments 501 Corporate expenses (33) Interest, fee and bond issue cost amortization expense (70) Other income (expense) 23 Income (loss) before taxes $ 991 (Some amounts may not reconcile due to rounding.) Further classifications of revenues by geographic location are impracticable to disclose and, therefore, are not provided. Additionally, such information is not utilized by the Company’s CODM when reviewing the business to assess performance, make operating decisions or allocate resources. Approximately 17.2%, 17.6% and 19.3% of the Company’s gross written premiums in 2023, 2022 and 2021, respectively, were sourced through the Company’s largest intermediary. |
SENIOR NOTES
SENIOR NOTES | 12 Months Ended |
Dec. 31, 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. December 31, 2023 December 31, 2022 (Dollars in millions) Date Issued Date Due Principal Consolidated Fair Consolidated Fair 4.868% Senior notes 06/05/2014 06/01/2044 400 $ 398 $ 369 $ 397 $ 343 3.5% Senior notes 10/07/2020 10/15/2050 1,000 981 742 981 677 3.125% Senior notes 10/04/2021 10/15/2052 1,000 970 688 969 627 2,400 $ 2,349 $ 1,799 $ 2,347 $ 1,647 Interest expense incurred in connection with these senior notes is as follows for the periods indicated: Years Ended December 31, (Dollars in millions) Interest Paid Payable Dates 2023 2022 2021 4.868% Senior notes semi-annually June 1/December 1 $ 19 $ 19 $ 19 3.5% Senior notes semi-annually April 15/October 15 35 35 35 3.125% Senior notes semi-annually April 15/October 15 32 32 8 $ 86 $ 86 $ 62 |
LONG-TERM SUBORDINATED NOTES
LONG-TERM SUBORDINATED NOTES | 12 Months Ended |
Dec. 31, 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. 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. December 31, 2023 December 31, 2022 Date Issued Original Maturity Date Consolidated Fair Consolidated Fair (Dollars in millions) Scheduled Final Long-term subordinated notes 04/26/2007 $ 400 05/15/2037 05/01/2067 $ 218 $ 187 $ 218 $ 187 During the fixed rate interest period from May 3, 2007 through May 14, 2017, interest was at the annual rate of 6.6%, payable semi-annually in arrears on November 15 and May 15 of each year, commencing on November 15, 2007. During the floating rate interest period from May 15, 2017 through maturity, interest will be based on the 3 month LIBOR plus 238.5 basis points, reset quarterly, payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, subject to Holdings’ right to defer interest on one or more occasions for up to ten ing August 15, 2023, interest will be based on 3-month CME Term SOFR plus a spread. Holdings may redeem the long-term subordinated notes on or after May 15, 2017, in whole or in part at 100% of the principal amount plus accrued and unpaid interest; however, redemption on or after the scheduled maturity date and prior to May 1, 2047 is subject to a replacement capital covenant. This covenant is for the benefit of certain senior note holders and it mandates that Holdings receive proceeds from the sale of another subordinated debt issue, of at least similar size, before it may redeem the subordinated notes. The Company’s 4.868% senior notes, due on June 1, 2044, 3.5% senior notes due on October 15, 2050 and 3.125% senior notes due on October 15, 2052 are the Company’s long-term indebtedness that rank senior to the long-term subordinated notes. In 2009, the Company had reduced its outstanding amount of long-term subordinated notes through the initiation of a cash tender offer for any and all of the long-term subordinated notes. In addition, the Company repurchased and retired $6 million of the outstanding long-term subordinated notes for the year ended December 31, 2022. The Company realized a gain of $1 million on the repurchases made during 2022. Interest expense incurred in connection with these long-term subordinated notes is as follows for the periods indicated: Years Ended December 31, (Dollars in millions) 2023 2022 2021 Interest expense incurred $ 17 $ 9 $ 6 |
FEDERAL HOME LOAN BANK MEMBERSH
FEDERAL HOME LOAN BANK MEMBERSHIP | 12 Months Ended |
Dec. 31, 2023 | |
Federal Home Loan Bank Membership [Abstract] | |
FEDERAL HOME LOAN BANK MEMBERSHIP | FEDERAL HOME LOAN BANK MEMBERSHIP |
COLLATERALIZED REINSURANCE, TRU
COLLATERALIZED REINSURANCE, TRUST AGREEMENTS AND OTHER RESTRICTED ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Collateralized Reinsurance And Trust Agreements [Abstract] | |
COLLATERALIZED REINSURANCE, TRUST AGREEMENTS AND OTHER RESTRICTED ASSETS | COLLATERALIZED REINSURANCE, TRUST AGREEMENTS AND OTHER RESTRICTED ASSETS The Company maintains certain restricted assets as security for potential future obligations, primarily to support its underwriting operations. The following table summarizes the Company’s restricted assets: At December 31, (Dollars in millions) 2023 2022 Collateral in trust for non-affiliated agreements (1) $ 825 $ 705 Collateral for FHLB borrowings 1,077 572 Securities on deposit with or regulated by government authorities 1,447 1,360 Funds held by reinsureds 306 303 Total restricted assets $ 3,654 $ 2,941 (1) At December 31, 2023 and December 31, 2022, the total amount on deposit in trust accounts includes $116 million and $21 million of restricted cash respectively. 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 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 December 31, 2023 $ 1,375 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. The Company had 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. As a result of Hurricane Ian, PCS’s current industry estimate of $48.2 billion issued in February 2024 exceeds the attachment point. The potential recovery under the CAT Bond is not expected to be material. As a result, no portion of the potential CAT bond recovery has been included in the Company’s current financial results. Kilimanjaro has financed the various property catastrophe reinsurance coverages by issuing catastrophe bonds to unrelated, external investors. The proceeds from the issuance of the Notes listed below are held in reinsurance trusts throughout the duration of the applicable reinsurance agreements and invested solely in US government money market funds with a rating of at least “AAAm” by Standard & Poor’s. The catastrophe bonds’ issue dates, maturity dates and amounts correspond to the reinsurance agreements listed above. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 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 loss adjustment expenses. Aside from litigation and arbitrations related to these insurance and reinsurance agreements, the Company is not a party to any other material litigation or arbitration. The Company has entered into separate annuity agreements with The Prudential Insurance Company of America (“The Prudential”) an unaffiliated life insurance company, as well as an additional unaffiliated life insurance company in which the Company has either purchased annuity contracts or become the assignee of annuity proceeds that are meant to settle claim payment obligations in the future. In both instances, the Company would become contingently liable if either The Prudential or the unaffiliated life insurance company was unable to make payments related to the respective annuity contract. The table below presents the estimated cost to replace all such annuities for which the Company was contingently liable for the periods indicated: At December 31, (Dollars in millions) 2023 2022 The Prudential $ 136 $ 137 Other unaffiliated life insurance company 34 34 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
LEASES | LEASES The Company enters into lease agreements for real estate that is primarily used for office space in the ordinary course of business. These leases are accounted for as operating leases, whereby lease expense is recognized on a straight-line basis over the term of the lease. Most leases include an option to extend or renew the lease term. The exercise of the renewal is at the Company’s discretion. The operating lease liability includes lease payments related to options to extend or renew the lease term if the Company is reasonably certain of exercise those options. The Company, in determining the present value of lease payments utilizes either the rate implicit in the lease if that rate is readily determinable or the Company’s incremental secured borrowing rate commensurate with terms of the underlying lease. Supplemental information related to operating leases is as follows for the periods indicated: Year Ended December 31, (Dollars in millions) 2023 2022 Lease expense incurred: Operating lease cost $ 26 $ 25 At December 31, (Dollars in millions) 2023 2022 Operating lease right of use assets (1) $ 111 $ 121 Operating lease liabilities (1) 130 139 (1) Operating lease right of use assets and operating lease liabilities are included within other assets and other liabilities on the Company’s consolidated balance sheets, respectively. Year Ended December 31, (Dollars in millions) 2023 2022 Operating cash flows from operating leases $ (19) $ (18) At December 31, 2023 2022 Weighted average remaining operating lease term 10.3 years 11.1 years Weighted average discount rate on operating leases 4.03 % 4.00 % Maturities of the existing lease liabilities are expected to occur as follows: (Dollars in millions) 2024 $ 20 2025 16 2026 15 2027 14 2028 12 Thereafter 78 Undiscounted lease payments 155 Less: present value adjustment 26 Total operating lease liability $ 130 |
COMPREHENSIVE INCOME (LOSS)
COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2023 | |
Other Comprehensive Income (Loss), Tax [Abstract] | |
COMPREHENSIVE INCOME (LOSS) | COMPREHENSIVE INCOME (LOSS) The following table presents the components of comprehensive income (loss) in the consolidated statements of operations for the periods indicated: December 31, 2023 December 31, 2022 December 31, 2021 (Dollars in millions) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax URA(D) on securities - temporary $ 473 (99) $ 374 $ (1,280) 269 $ (1,011) $ (254) 53 $ (200) Reclassification of net realized losses (gains) included in net income (loss) 193 (41) 153 93 (20) 73 12 (3) 9 Foreign currency translation adjustments 22 (5) 17 (23) 5 (18) (11) 2 (9) Benefit plan actuarial net gain (loss) 19 (4) 15 18 (4) 15 22 (5) 17 Reclassification of amortization of net gain (loss) included in net income (loss) 2 — 2 3 (1) 2 8 (2) 6 Total other comprehensive income (loss) $ 710 $ (149) $ 561 $ (1,189) $ 249 $ (939) $ (223) $ 47 $ (177) (Some amounts may not reconcile due to rounding) The following table presents details of the amounts reclassified from AOCI for the periods indicated: Years Ended December 31, Affected line item within the AOCI component 2023 2022 (Dollars in millions) URA(D) on securities $ 193 $ 93 Other net realized capital gains (losses) (41) (20) Income tax expense (benefit) $ 153 $ 73 Net income (loss) Benefit plan net gain (loss) $ 2 $ 3 Other underwriting expenses — (1) Income tax expense (benefit) $ 2 $ 2 Net income (loss) (Some amounts may not reconcile due to rounding) The following table presents the components of accumulated other comprehensive income (loss), net of tax, in the consolidated balance sheets for the periods indicated: Years Ended December 31, (Dollars in millions) 2023 2022 Beginning balance of URA(D) on securities $ (816) $ 122 Current period change in URA(D) of investments - temporary 527 (938) Ending balance of URA(D) on securities (289) (816) Beginning balance of foreign currency translation adjustments 2 20 Current period change in foreign currency translation adjustments 17 (18) Ending balance of foreign currency translation adjustments 19 2 Beginning balance of benefit plan net gain (loss) (33) (50) Current period change in benefit plan net gain (loss) 17 17 Ending balance of benefit plan net gain (loss) (16) (33) Ending balance of accumulated other comprehensive income (loss) $ (287) $ (848) (Some amounts may not reconcile due to rounding) |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Defined Benefit Pension Plans. The Company maintains both qualified and non-qualified defined benefit pension plans for its U.S. employees employed prior to April 1, 2010. Generally, the Company computes the benefits based on average earnings over a period prescribed by the plans and credited length of service. The Company’s non-qualified defined benefit pension plan provided compensating pension benefits for participants whose benefits have been curtailed under the qualified plan due to Internal Revenue Code limitations. Effective January 1, 2018, participants of the Company’s non-qualified defined benefit pension plan no longer accrue additional service benefits. Although not required to make contributions under IRS regulations, the following table summarizes the Company’s contributions to the defined benefit pension plans for the periods indicated: Years Ended December 31, (Dollars in millions) 2023 2022 2021 Company contributions $ 1 $ 6 $ 4 The following table summarizes the Company’s pension expense for the periods indicated: Years Ended December 31, (Dollars in millions) 2023 2022 2021 Pension expense $ 5 $ (2) $ 3 The following table summarizes the status of these defined benefit plans for U.S. employees for the periods indicated: Years Ended December 31, (Dollars in millions) 2023 2022 Change in projected benefit obligation: Benefit obligation at beginning of year $ 291 $ 403 Service cost 5 9 Interest cost 14 10 Actuarial (gain)/loss 9 (115) Curtailment — — Benefits paid (25) (15) Projected benefit obligation at end of year 295 291 Change in plan assets: Fair value of plan assets at beginning of year 285 377 Actual return on plan assets 48 (83) Actual contributions during the year 1 6 Benefits paid (25) (15) Fair value of plan assets at end of year 308 285 Funded status at end of year $ 13 $ (6) (Some amounts may not reconcile due to rounding.) Amounts recognized in the consolidated balance sheets for the periods indicated: At December 31, (Dollars in millions) 2023 2022 Other assets (due beyond one year) $ 19 $ 1 Other liabilities (due within one year) (3) (1) Other liabilities (due beyond one year) (3) (6) Net amount recognized in the consolidated balance sheets $ 13 $ (6) Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income (loss) for the periods indicated: At December 31, (Dollars in millions) 2023 2022 Accumulated income (loss) $ (33) $ (56) Accumulated other comprehensive income (loss) $ (33) $ (56) (Some amounts may not reconcile due to rounding.) Other changes in other comprehensive income (loss) for the periods indicated are as follows: Years Ended December 31, (Dollars in millions) 2023 2022 Other comprehensive income (loss) at December 31, prior year $ (56) $ (68) Net gain (loss) arising during period 19 7 Recognition of amortizations in net periodic benefit cost: Actuarial loss 4 4 Curtailment loss recognized — — Other comprehensive income (loss) at December 31, current year $ (33) $ (56) (Some amounts may not reconcile due to rounding.) Net periodic benefit cost for U.S. employees included the following components for the periods indicated: Years Ended December 31, (Dollars in millions) 2023 2022 2021 Service cost $ 5 $ 9 $ 11 Interest cost 14 10 8 Expected return on assets (19) (25) (24) Amortization of actuarial loss from earlier periods 4 4 8 Settlement — 1 — Net periodic benefit cost $ 5 $ (2) $ 3 Other changes recognized in other comprehensive income (loss): Other comprehensive income (loss) attributable to change from prior year (23) (12) Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (18) $ (14) (Some amounts may not reconcile due to rounding.) The weighted average discount rates used to determine net periodic benefit cost for 2023, 2022 and 2021 were 5.25%, 2.86% and 2.55%, respectively. The rate of compensation increase used to determine the net periodic benefit cost for 2023, 2022 and 2021 was 4.00%. The expected long-term rate of return on plan assets for 2023, 2022 and 2021 was 7.00%, 6.75% and 7.00% respectively. The weighted average discount rates used to determine the actuarial present value of the projected benefit obligation for 2023, 2022 and 2021 were 5.00%, 5.25% and 2.86%, respectively. The following table summarizes the accumulated benefit obligation for the periods indicated: At December 31, (Dollars in millions) 2023 2022 Qualified Plan $ 263 $ 258 Non-qualified Plan 6 6 Total $ 269 $ 264 (Some amounts may not reconcile due to rounding.) The following table displays the plans with projected benefit obligations in excess of plan assets for the periods indicated: At December 31, (Dollars in millions) 2023 2022 Qualified Plan Projected benefit obligation $ 289 $ 284 Fair value of plan assets 308 285 Non-qualified Plan Projected benefit obligation $ 6 $ 6 Fair value of plan assets — — The following table displays the plans with accumulated benefit obligations in excess of plan assets for the periods indicated: At December 31, (Dollars in millions) 2023 2022 Qualified Plan Accumulated benefit obligation $ — $ — Fair value of plan assets — — Non-qualified Plan Accumulated benefit obligation 6 6 Fair value of plan assets $ — $ — The following table displays the expected benefit payments in the periods indicated: (Dollars in millions) 2024 $ 15 2025 14 2026 15 2027 16 2028 17 Next 5 years 99 Plan assets consist primarily of shares in investment trusts with 75%, 24% and 1% of the underlying assets consisting of equity securities, fixed maturities and cash, respectively. The Company manages the qualified plan investments for U.S. employees. The assets in the plan consist of debt and equity mutual funds. Due to the long-term nature of the plan, the target asset allocation has historically been 70% equities and 30% bonds. The following tables present the fair value measurement levels for the qualified plan assets at fair value for the periods indicated: Fair Value Measurement Using: (Dollars in millions) December 31, Quoted Prices Significant Significant Assets: Short-term investments, which approximates fair value (a) $ 2 $ 2 $ — $ — Mutual funds, fair value Fixed income (b) 73 73 — — Equities (c) 232 232 — — Total $ 308 $ 308 $ — $ — (Some amounts may not reconcile due to rounding.) (a) This category includes high quality, short-term money market instruments, which are issued and payable in U.S. dollars. (b) This category includes fixed income funds, which invest in investment grade securities of corporations, governments and government agencies with approximately 90% in U.S. securities and 10% in international securities. (c) This category includes funds, which invest in small, mid and multi-cap equity securities including common stocks, securities convertible into common stock and securities with common stock characteristics, such as rights and warrants, with approximately 100% in U.S. equities. Fair Value Measurement Using: (Dollars in millions) December 31, Quoted Prices Significant Significant Assets: Short-term investments, which approximates fair value (a) $ 4 $ 4 $ — $ — Mutual funds, fair value Fixed income (b) 68 68 — — Equities (c) 211 211 — — Total $ 283 $ 283 $ — $ — (Some amounts may not reconcile due to rounding.) (a) This category includes high quality, short-term money market instruments, which are issued and payable in U.S. dollars. (b) This category includes fixed income funds, which invest in investment grade securities of corporations, governments and government agencies with approximately 70% in U.S. securities and 30% in international securities. (c) This category includes funds, which invest in small, mid and multi-cap equity securities including common stocks, securities convertible into common stock and securities with common stock characteristics, such as rights and warrants, with approximately 50% in U.S. equities and 50% in international equities. In addition, $2 million of investments which were recorded as part of the qualified plan assets at December 31, 2022, are not included within the fair value hierarchy tables as the assets are valued using the NAV practical expedient guidance within ASU 2015-07. No contributions were made to the qualified pension benefit plan for the years ended December 31, 2023 and 2022. Defined Contribution Plans. The Company also maintains both qualified and non-qualified defined contribution plans (“Savings Plan” and “Non-Qualified Savings Plan”, respectively) covering U.S. employees. Under the plans, the Company contributes up to a maximum 3% of the participants’ compensation based on the contribution percentage of the employee. The Non-Qualified Savings Plan provides compensating savings plan benefits for participants whose benefits have been curtailed under the Savings Plan due to Internal Revenue Code limitations. In addition, effective for new hires (and rehires) on or after April 1, 2010, the Company will contribute between 3% and 8% of an employee’s earnings for each payroll period based on the employee’s age. These contributions will be 100% vested after three years. The Company incurred expenses related to these plans of $22 million, $18 million and $15 million for the years ended December 31, 2023, 2022 and 2021, respectively. In addition, the Company maintains several defined contribution pension plans covering non-U.S. employees. Each international office maintains a separate plan for the non-U.S. employees working in that location. The Company contributes various amounts based on salary, age and/or years of service. In the current year, the contributions as a percentage of salary for the international offices ranged from 7.5% to 9.3%. The contributions are generally used to purchase pension benefits from local insurance providers. The Company incurred expenses related to these plans of $0.7 million, $0.7 million and $0.6 million for the years ended December 31, 2023, 2022 and 2021, respectively. Post-Retirement Plan. The Company sponsors a Retiree Health Plan for employees employed prior to April 1, 2010. This plan provides healthcare benefits for eligible retired employees (and their eligible dependents), who have elected coverage. The Company anticipates that most covered employees will become eligible for these benefits if they retire while working for the Company. The cost of these benefits is shared with the retiree. The Company accrues the post-retirement benefit expense during the period of the employee’s service. A medical cost trend rate of 6.75% in 2023 was assumed to decrease gradually to 4.75% in 2030 and then remain at that level. The Company incurred expenses of $(1) million, $1 million and $1 million for the years ended December 31, 2023, 2022 and 2021, respectively. The following table summarizes the status of this plan for the periods indicated: At December 31, (Dollars in millions) 2023 2022 Change in projected benefit obligation: Benefit obligation at beginning of year $ 21 $ 31 Service cost 1 1 Interest cost 1 1 Amendments — — Actuarial (gain)/loss (1) (10) Benefits paid — — Benefit obligation at end of year 22 21 Change in plan assets: Fair value of plan assets at beginning of year — — Employer contributions — — Benefits paid — — Fair value of plan assets at end of year — — Funded status at end of year $ (22) $ (21) Amounts recognized in the consolidated balance sheets for the periods indicated: At December 31, (Dollars in millions) 2023 2022 Other liabilities (due within one year) $ (1) $ (1) Other liabilities (due beyond one year) (21) (21) Net amount recognized in the consolidated balance sheets $ (22) $ (21) (Some amounts may not reconcile due to rounding.) Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income (loss) for the periods indicated: At December 31, (Dollars in millions) 2023 2022 Accumulated income (loss) $ 11 $ 13 Accumulated prior service credit (cost) 1 1 Accumulated other comprehensive income (loss) $ 12 $ 14 Other changes in other comprehensive income (loss) for the periods indicated are as follows: Years Ended December 31, (Dollars in millions) 2023 2022 Other comprehensive income (loss) at December 31, prior year $ 14 $ 4 Net gain (loss) arising during period 1 10 Prior Service credit (cost) arising during period — — Recognition of amortizations in net periodic benefit cost: Actuarial loss (gain) (2) — Prior service cost — — Other comprehensive income (loss) at December 31, current year $ 12 $ 14 Net periodic benefit cost included the following components for the periods indicated: Years Ended December 31, (Dollars in millions) 2023 2022 2021 Service cost $ 1 $ 1 $ 1 Interest cost 1 1 1 Prior service credit recognition — — (1) Net gain recognition (2) — — Net periodic cost $ (1) $ 1 $ 1 Other changes recognized in other comprehensive income (loss): Other comprehensive gain (loss) attributable to change from prior year 2 (10) Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 1 $ (9) (Some amounts may not reconcile due to rounding.) The weighted average discount rates used to determine net periodic benefit cost for 2023, 2022 and 2021 were 5.25%, 2.86% and 2.55%, respectively. The weighted average discount rates used to determine the actuarial present value of the projected benefit obligation at year end 2023, 2022 and 2021 were 5.00%, 5.25% and 2.86%, respectively. The following table displays the expected benefit payments in the years indicated: (Dollars in millions) 2024 $ 1 2025 1 2026 1 2027 1 2028 1 Next 5 years 7 |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 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 December 31, 2023. The fair value of these long-term notes is considered Level 2 in the fair value hierarchy. December 31, 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: Years Ended December 31, (Dollars in millions) Interest Received Receivable Dates 2023 2022 2021 1.69% Long-term Note annually December 17 $ 2 $ 5 $ 5 1.00% Long-term Note annually August 5 1 2 1 3.11% Long-term Note annually June 14 5 4 — 4.34% Long-term Note annually December 12 — — — $ 7 $ 11 $ 6 (Some amounts may not reconcile due to rounding.) Holdings 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 realized capital gains (losses) in the consolidated statements of operations and comprehensive income (loss). The following table presents the dividends received on the preferred shares of Preferred Holdings and on the Parent shares that are reported as net investment income in the consolidated statements of operations and comprehensive income (loss) for the periods indicated: Years Ended December 31, (Dollars in millions) 2023 2022 2021 Dividends received on preferred stock of affiliate $ 31 $ 31 $ 31 Affiliated Companies Everest Global Services, Inc. (“Global Services”), an affiliate of Holdings, provides centralized management and home office services, through a management agreement, to Holdings and other affiliated companies within Holdings’ consolidated structure. Services provided by Everest Global include executive managerial services, legal services, actuarial services, accounting services, information technology services and others. The following table presents the expenses incurred by Holdings from services provided by Everest Global for the periods indicated. Years Ended December 31, (Dollars in millions) 2023 2022 2021 Expenses incurred $ 204 $ 204 $ 133 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES All of the income of Holdings U.S. subsidiaries, including its foreign branches, is subject to the applicable federal, foreign, state, and local income taxes on corporations. The provision for income taxes in the consolidated statement of operations and comprehensive income (loss) has been determined by applying the respective tax laws to the income of each entity. 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. The significant components of the provision are as follows for the periods indicated: Years Ended December 31, (Dollars in millions) 2023 2022 2021 Current tax expense (benefit): U.S. $ 284 $ 95 $ 102 Foreign — — — Total current tax expense (benefit) 284 95 102 Total deferred U.S. tax expense (benefit) (74) (207) 90 Total income tax expense (benefit) $ 210 $ (112) $ 192 A reconciliation of the total income tax provision using the statutory U.S. Federal Income tax rate to the Company’s total income tax provision is as follows for the periods indicated: Years Ended December 31, (Dollars in millions) 2023 2022 2021 Expected income tax provision at the U.S. statutory tax rate $ 248 $ (117) $ 208 Increase (reduction) in taxes resulting from: Tax exempt income (3) (4) (4) Dividend received deduction (2) (3) (1) Proration 1 1 1 Creditable foreign premium tax (14) (11) (13) Reserve adjustment — (19) — U.S. BEAT tax — 22 — Share based compensation (3) (3) (2) Prior year true up (21) 16 — Insurance company-owned life insurance (13) (1) — Other 17 7 3 Total income tax provision $ 210 $ (112) $ 192 (Some amounts may not reconcile due to rounding.) At December 31, 2023, 2022 and 2021, the Company had no uncertain tax positions. The Company’s 2014 through 2018 U.S. tax years are under audit by the Internal Revenue Service (“IRS”). Over several years, the Company had received and responded to a significant number of Information Document Requests (“IDRs”). In 2023, the IRS issued several insignificant Notice(s) of Proposed Adjustment. The Company had filed amended tax returns requesting refunds for 2015 and 2016 for $2 million and $5 million, respectively. In the fall of 2023, the IRS issued a final Revenue Agent Report (“RAR”) which is under review by the Company. We have asked for and received an extension from the IRS to complete our review. Note that the IRS requested, and we have signed, an extension of the audit to June 30, 2025. For tax year 2019, the Statute of Limitations has expired and, thus, the Federal income tax return for the year is no longer subject to IRS examination except to the extent the Company files an amended return. Tax years 2020, 2021, and 2022 are open for examination by the IRS. Deferred income taxes reflect the tax effect of the temporary differences between the value of assets and liabilities for financial statement purposes and such values as measured by U.S. tax laws and regulations. The principal items making up the net deferred income tax assets/(liabilities) are as follows for the periods indicated: At December 31, (Dollars in millions) 2023 2022 Deferred tax assets: Loss reserves $ 154 $ 154 Unearned premium reserve 143 114 Net unrealized investment losses 66 200 Depreciation 44 — Lease Liability 27 29 Unrealized foreign currency losses 15 24 Investment impairments 12 12 Equity compensation 8 7 Amortization 7 — Net unrecognized losses on benefit plans 4 9 Foreign tax credits — 3 Other assets 17 12 Total deferred tax assets 497 564 Deferred tax liabilities: Deferred acquisition costs 139 105 Net fair value income 136 141 Partnership Investments 49 56 Right of use asset 23 25 Bond market discount 9 5 Depreciation — 16 Other liabilities 5 6 Total deferred tax liabilities 361 354 Net deferred tax assets/(liabilities) $ 136 $ 210 (Some amounts may not reconcile due to rounding.) At December 31, 2023, and 2022, the Company had $0 million and $3 million respectively of foreign tax credit (“FTC”) carryforwards, all related to the branch basket. The branch basket FTCs begin to expire in 2030. Tax effected U.S. Separate Return Limitation Year Net Operating Losses (“NOLs”) of $1 million begin to expire in 2037. At December 31, 2023 there is a $1 million valuation allowance offsetting the U.S. Separate Return Limitation NOLs. At December 31, 2023, $66 million of the Company’s deferred tax asset relates primarily to unrealized losses on available for sale fixed maturity securities. The unrealized losses on available for sale fixed maturity securities were a result of market conditions, including rising interest rates. Ultimate realization of the deferred tax asset depends on the Company’s ability and intent to hold the available for sale securities until they recover their value or mature. As of December 31, 2023, based on all the available evidence, the Company has concluded that the deferred tax asset related to the unrealized losses on the available for sale fixed maturity portfolio are, more likely than not, expect to be realized. The Company follows ASU 2016-09 in regard to the treatment of the tax effects of share-based compensation transactions. ASU 2016-09 required that the income tax effects of restricted stock vestings and stock option exercises resulting from the change in value of share-based compensation awards between the grant date and settlement (vesting/exercising) date be recorded as part of income tax expense (benefit) within the consolidated statements of operations and comprehensive income (loss). Per ASU 2016-09, the Company recorded excess tax benefits of $3 million, $3 million and $2 million related to restricted stock vestings and stock option exercises as part of income tax expense (benefit) within the consolidated statements of operations and comprehensive income (loss) in 2023, 2022 and 2021, respectively. ASU 2016-09 does not impact the accounting treatment of tax benefits related to dividends on restricted stock. The tax benefits related to the payment of dividends on restricted stock have been recorded as part of additional paid-in capital in the stockholder’s equity section of the consolidated balance sheets in all years. The tax benefits related to the payment of dividends on restricted stock were $0.4 million, $0.4 million and $0.4 million in 2023, 2022 and 2021, respectively. |
DIVIDEND RESTRICTIONS AND STATU
DIVIDEND RESTRICTIONS AND STATUTORY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
Dividend Restrictions And Statutory Financial Information [Abstract] | |
DIVIDEND RESTRICTIONS AND STATUTORY FINANCIAL INFORMATION | DIVIDEND RESTRICTIONS AND STATUTORY FINANCIAL INFORMATION Holdings and its operating subsidiaries are subject to various regulatory restrictions, including the amount of dividends that may be paid and the level of capital that the operating entities must maintain. These regulatory restrictions are based upon statutory capital as opposed to GAAP basis equity or net assets. Holdings’ primary operating subsidiary, Everest Re, is regulated by Delaware law and is subject to the Risk-Based Capital Model (“RBC”) developed by the National Association of Insurance Commissioners (“NAIC”). This model represents the aggregate regulatory restrictions on net assets and statutory capital and surplus. Dividend Restrictions. Delaware law provides that an insurance company which is a member of an insurance holding company system and is domiciled in the state shall not pay dividends without giving prior notice to the Insurance Commissioner of Delaware and may not pay dividends without the approval of the Insurance Commissioner if the value of the proposed dividend, together with all other dividends and distributions made in the preceding twelve months, exceeds the greater of (1) 10% of statutory surplus or (2) net income, not including realized capital gains, each as reported in the prior year’s statutory annual statement. In addition, no dividend may be paid in excess of unassigned earned surplus. Accordingly, as of December 31, 2023, the maximum amount that will be available for the payment of dividends by Everest Re without triggering the requirement for prior approval of regulatory authorities in connection with a dividend is $877 million. Statutory Financial Information. Everest Re prepares its statutory financial statements in accordance with accounting practices prescribed or permitted by the NAIC and the Delaware Insurance Department. Prescribed statutory accounting practices are set forth in the NAIC Accounting Practices and Procedures Manual. The capital and statutory surplus of Everest Re was $7.0 billion and $5.6 billion at December 31, 2023 and 2022, respectively. The statutory net income of Everest Re was $877 million, $294 million and $264 million for the years ended December 31, 2023, 2022 and 2021, respectively. There are certain regulatory and contractual restrictions on the ability of Holdings’ operating subsidiaries to transfer funds to Holdings in the form of cash dividends, loans or advances. The insurance laws of the State of Delaware, where Holdings’ direct insurance subsidiaries are domiciled, require regulatory approval before those subsidiaries can pay dividends or make loans or advances to Holdings that exceed certain statutory thresholds. Capital Restrictions. In the United States, Everest Re is subject to the RBC developed by the NAIC which determines an authorized control level risk-based capital. As long as the total adjusted capital is 200% or more of the authorized control level capital, no action is required by the Company. The regulatory targeted capital and the actual statutory capital for Everest Re is as follows: Everest Re (1) At December 31, (Dollars in millions) 2023 2022 Regulatory targeted capital $ 4,242 $ 3,353 Actual capital $ 6,963 $ 5,553 (1) Regulatory targeted capital represents 200% of the RBC authorized control level calculation for the applicable year. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The Company has evaluated known recognized and non-recognized subsequent events. The Company does not have any subsequent events to report. |
SCHEDULE I - SUMMARY OF INVESTM
SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES | SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES DECEMBER 31, 2023 Column A Column B Column C Column D (Dollars in millions) Cost Market Amount Fixed maturities - available for sale Bonds: U.S. government and government agencies $ 265 $ 247 $ 247 State, municipalities and political subdivisions 138 128 128 Foreign government securities 859 835 835 Foreign corporate securities 1,807 1,759 1,759 Public utilities 238 231 231 All other corporate bonds 8,990 8,907 8,907 Mortgage - backed securities Commercial 575 522 522 Agency residential 2,531 2,435 2,435 Non-agency residential 429 441 441 Redeemable preferred stock 474 427 427 Total fixed maturities - available for sale 16,305 15,932 15,932 Fixed maturities - held to maturity Bonds: Foreign corporate securities 84 90 83 Public utilities 4 5 4 All other corporate bonds 750 733 743 Mortgage - backed securities Commercial 21 21 21 Total Fixed maturities - held to maturity 859 850 851 Equity securities at fair value (1) 91 91 91 Short-term investments 1,298 1,298 1,298 Other invested assets 3,259 3,259 3,259 Other invested assets, at fair value (1) 1,773 1,481 1,481 Cash 527 527 527 Total investments and cash $ 24,111 $ 23,437 $ 23,439 (Some amounts may not reconcile due to rounding.) (1) Original cost does not reflect fair value adjustments, which have been realized through the statements of operations and comprehensive income (loss). |
SCHEDULE II _ CONDENSED FINANCI
SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT | SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT CONDENSED BALANCE SHEETS At December 31, (Dollars in millions, except share amounts and par value per share) 2023 2022 ASSETS: Fixed maturities - available for sale (amortized cost: 2023, $0; 2022, $0) $ — $ — Equity securities - at fair value 18 12 Other invested assets 190 194 Other invested assets, at fair value 1,481 1,472 Short-term investments 139 30 Cash 1 2 Total investments and cash 1,829 1,710 Investment in subsidiaries, at equity in the underlying net assets 7,545 5,496 Notes receivable - affiliated 535 1,170 Accrued investment income 6 12 Other assets 1 — TOTAL ASSETS $ 9,916 $ 8,388 LIABILITIES: Senior notes $ 2,349 $ 2,347 Long-term notes 218 218 Accrued interest on debt and borrowings 18 17 Income taxes 142 144 Due to affiliates 3 7 Total liabilities $ 2,729 $ 2,734 STOCKHOLDER'S EQUITY: Common stock, par value: $0.01; 3,000 shares authorized; 1,000 shares issued and outstanding (2023 and 2022) — — Additional paid-in capital 1,102 1,102 Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) of $(76) at 2023 and $(225) at 2022 (287) (848) Retained earnings 6,372 5,400 Total stockholder's equity 7,187 5,654 TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $ 9,916 $ 8,388 Years Ended December 31, (Dollars in millions) 2023 2022 2021 REVENUES: Net investment income $ 19 $ 47 $ 39 Net investment income - Affiliated 67 57 34 Net gains (losses) on investments 10 (704) 329 Other income (expense) 1 (3) — Net income (loss) of subsidiaries 987 114 551 Total revenues 1,086 (488) 954 EXPENSES: Interest expense 104 97 69 Corporate expense 15 10 18 Total expenses 119 107 86 INCOME (LOSS) BEFORE TAXES 967 (595) 867 Income tax expense (benefit) (5) (150) 68 NET INCOME (LOSS) $ 972 $ (445) $ 800 Other comprehensive income (loss) of subsidiaries, net of tax 561 (939) (177) COMPREHENSIVE INCOME (LOSS) $ 1,533 $ (1,384) $ 623 See notes to consolidated financial statements. Years Ended December 31, (Dollars in millions) 2023 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 972 $ (445) $ 800 Adjustments to reconcile net income to net cash provided by operating activities: Equity in (earnings) deficit of subsidiaries (987) (114) (551) Dividends received from subsidiary — 250 — Increase (decrease) in income taxes (2) (173) (45) Change in equity adjustments in limited partnerships (15) (37) (33) Change in other assets and liabilities, net 2 (5) 40 Net (gains) losses on investments (10) 704 (329) Net cash provided by (used in) operating activities (40) 180 (118) CASH FLOWS FROM INVESTING ACTIVITIES: Additional investment in subsidiaries (502) (200) 88 Proceeds from fixed maturities matured/called/repaid - available for sale — — — Proceeds from fixed maturities sold - available for sale — 244 — Proceeds from equity maturities sold — 652 243 Distributions from other invested assets 171 1,362 2,014 Cost of fixed maturities acquired - available for sale — (134) (148) Cost of equity securities acquired — (93) (516) Cost of other invested assets acquired (156) (1,278) (2,076) Net change in short-term investments (109) (24) 5 Proceeds from repayment of long term notes receivable - affiliated 865 400 — (Issuance) of long term notes receivable - affiliated (230) (1,100) (470) Net cash provided by (used in) investing activities 39 (171) (860) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of senior notes — — 968 Cost of debt repurchase — (6) — Net cash provided by (used in) financing activities — (6) 968 Net increase (decrease) in cash (1) 2 (10) Cash, beginning of period 2 — 10 Cash, end of period $ 1 $ 2 $ — See notes to consolidated financial statements. SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT NOTES TO CONDENSED FINANCIAL INFORMATION 1.) The accompanying condensed financial information should be read in conjunction with the Consolidated Financial Statements and related notes of Everest Reinsurance Holdings, Inc. and its subsidiaries. 2.) The Senior Notes and Long-Term Subordinated Notes presented in Notes 7 and 8 are direct obligations of the Registrant. 3.) Effective May 2023, Everest Reinsurance Holdings, Inc. entered into a $230 million long-term promissory note with Everest Reinsurance Company, a subsidiary entity. The promissory note has an interest rate of 3.72% payable annually and is scheduled to mature on October 21, 2051. However, the note was paid off in full in May 2023 and is no longer outstanding as of December 31, 2023. 4.) Effective December 2022, Everest Reinsurance Holdings, Inc. entered into a $125 million long-term promissory note with Everest Group, Ltd., its parent. The promissory note has an interest rate of 4.34% payable annually and is scheduled to mature in June 2052. However, the note was paid off in full in May 2023 and is no longer outstanding as of December 31, 2023. At December 31, 2022, this transaction was included within notes receivable - affiliated in the condensed balance sheets of Everest Reinsurance Holdings, Inc. 5.) Effective September 2022, Everest Reinsurance Holdings, Inc. entered into a $560 million long-term promissory note with Everest Reinsurance Company, a subsidiary entity. The promissory note has an interest rate of 3.35% payable annually and is scheduled to mature in September 2052. Everest Reinsurance Company has repaid $270 million of the promissory note to Everest Reinsurance Holdings, Inc. in December 2023 which leaves $290 million outstanding as of December 31, 2023. At December 31, 2023, this transaction was included within notes receivable - affiliated in the condensed balance sheets of Everest Reinsurance Holdings, Inc. 6.) Effective June 2022, Everest Reinsurance Holdings, Inc. entered into a $215 million long-term promissory note with Everest Group, Ltd., its parent entity. The promissory note has an interest rate of 3.11% payable annually and is scheduled to mature in June 2052. However, the note was paid off in full in May 2023 and is no longer outstanding as of December 31, 2023. At December 31, 2022, this transaction was included within notes receivable - affiliated in the condensed balance sheets of Everest Reinsurance Holdings, Inc. 7.) Effective May 2022, Everest Reinsurance Holdings, Inc. entered into a $200 million long-term promissory note with Everest Reinsurance Company, a subsidiary entity. The promissory note has an interest rate of 3.25% payable annually and is scheduled to mature on October 21, 2051. At December 31, 2023 and 2022, this transaction was included within notes receivable - affiliated in the condensed balance sheets of Everest Reinsurance Holdings, Inc. 8.) Effective October 21, 2021, Everest Reinsurance Holdings, Inc. entered into a $470 million long-term promissory note with Everest Reinsurance Company, a subsidiary entity. The promissory note has an interest rate of 3.25% payable annually and is scheduled to mature on October 21, 2051. Everest Reinsurance Company has repaid $425 million of the promissory note to Everest Reinsurance Holdings, Inc., leaving $45 million of the promissory note still outstanding as of December 31, 2023. 9.) In December, 2015, Holdings transferred the 9,719,971 Common Shares of Group, which it held as other invested assets, at fair value, valued at $1.8 billion, to Preferred Holdings, an affiliated entity and subsidiary of Group, in exchange for 1,773.214 preferred shares of Preferred Holdings with a $1 million par value and 1.75% annual dividend rate. After the exchange, Holdings no longer holds any shares or has any ownership interest in Group. |
SCHEDULE III - SUPPLEMENTARY IN
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION | EVEREST REINSURANCE HOLDINGS, INC. SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION Column A Column B Column C Column D Column E Column F Column G Column H Column I Column J Segments Deferred Reserve Unearned Premiums Net Incurred Amortization Other Net (Dollars in millions) As of and for the year ended December 31, 2023 Reinsurance $ 487 $ 10,178 $ 2,050 $ 5,637 $ 640 $ 3,329 $ 1,545 $ 167 $ 6,205 Insurance 172 5,617 1,836 2,900 353 2,249 306 407 3,007 Total $ 659 $ 15,796 $ 3,886 $ 8,536 $ 993 $ 5,578 $ 1,851 $ 574 $ 9,212 As of and for the year ended December 31, 2022 Reinsurance $ 329 $ 9,994 $ 1,453 $ 5,147 $ 426 $ 3,926 $ 1,308 $ 138 $ 5,204 Insurance 170 4,983 1,725 2,729 212 1,897 325 364 2,828 Total $ 499 $ 14,977 $ 3,177 $ 7,876 $ 638 $ 5,823 $ 1,632 $ 501 $ 8,032 As of and for the year ended December 31, 2021 Reinsurance $ 315 $ 8,807 $ 1,427 $ 4,899 $ 500 $ 3,750 $ 1,229 $ 142 $ 5,217 Insurance 157 4,314 1,566 2,279 245 1,637 284 312 2,503 Total $ 472 $ 13,121 $ 2,993 $ 7,179 $ 745 $ 5,387 $ 1,513 $ 454 $ 7,719 (Some amounts may not reconcile due to rounding.) |
SCHEDULE IV - REINSURANCE
SCHEDULE IV - REINSURANCE | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
SCHEDULE IV - REINSURANCE | SCHEDULE IV - REINSURANCE Column A Column B Column C Column D Column E Column F (Dollars in millions) Gross Ceded to Assumed Net Assumed December 31, 2023 Total property and liability insurance premiums earned $ 3,709 $ 1,878 $ 6,705 $ 8,536 78.6 % December 31, 2022 Total property and liability insurance premiums earned $ 3,544 $ 1,613 $ 5,945 $ 7,876 75.5 % December 31, 2021 Total property and liability insurance premiums earned $ 2,982 $ 1,544 $ 5,741 $ 7,179 80.0 % |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Business And Basis Of Presentation | The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The statements include all of the following domestic and foreign direct and indirect subsidiaries of the Company: Everest Reinsurance Company (“Everest Re”), Everest Global Services, Inc. (“Global Services”), Everest National Insurance Company (“Everest National”), Everest Indemnity Insurance Company (“Everest Indemnity”), Everest Security Insurance Company (“Everest Security”), Everest Reinsurance Company - Escritório de Representação No Brasil Ltda. (“Everest Brazil”), Mt. Whitney Securities, Inc., Everest Denali Insurance Company (“Everest Denali”), Everest Premier Insurance Company (“Everest Premier”), Everest Specialty Underwriters Services, LLC, Everest International Assurance, Ltd. (“Everest Assurance”), EverSports & Entertainment Insurance, Inc. (“Specialty”), Specialty Insurance Group - Leisure and Entertainment Risk Purchasing Group LLC (“Specialty RPG”), Salus Systems (“Salus”) and Mt. McKinley Managers, L.L.C. All intercompany accounts and transactions have been eliminated. All amounts are reported in U.S. dollars. |
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. |
Investments and Cash | Investments and Cash. Fixed maturity securities designated as available for sale reflect unrealized appreciation and depreciation, as a result of changes in fair value during the period, in stockholder’s equity, net of income taxes in “accumulated other comprehensive income (loss)” in the consolidated balance sheets. The Company reviews all of its fixed maturity, available for sale securities whose fair value has fallen below their amortized cost at the time of review. The Company then assesses whether the decline in value is due to non-credit related or credit related factors. In making its assessment, the Company evaluates the current market and interest rate environment as well as specific issuer information. Generally, a change in a security’s value caused by a change in the market, interest rate or foreign exchange environment does not constitute a credit impairment, but rather a non-credit related decline in fair value. Non-credit related declines in fair value are recorded as unrealized losses in accumulated other comprehensive income (loss). If the Company intends to sell the impaired security or is more likely than not to be required to sell the security before an anticipated recovery in value, the Company records the entire impairment in net gains (losses) on investments in the Company’s consolidated statements of operations and comprehensive income (loss). If the Company determines that the decline is credit related and the Company does not have the intent to sell the security; and it is more likely than not that the Company will not have to sell the security before recovery of its cost basis, the Company establishes a credit allowance equal to the estimated credit loss and is recorded in net gains (losses) on investments in the Company’s consolidated statements of operations and comprehensive income (loss). The determination of credit-related or non-credit-related impairment is first based on an assessment of qualitative factors, which may determine that a qualitative analysis is sufficient to support the conclusion that the present value of expected cash flows equals or exceeds the security’s amortized cost basis. However, if the qualitative assessment suggests a credit loss may exist, a quantitative assessment is performed, and the amount of the allowance for a given security will generally be the difference between a discounted cash flow model and the Company’s carrying value. The Company will adjust the credit allowance account for future changes in credit loss estimates for a security and record this adjustment through net gains (losses) on investments in the Company’s consolidated statements of operations and comprehensive income (loss). Fixed maturity securities designated as held to maturity consist of debt securities for which the Company has both the positive intent and ability to hold to maturity or redemption and are reported at amortized cost, net of the current expected credit loss allowance. Interest income for fixed maturity securities held to maturity is determined in the same manner as interest income for fixed maturity securities available for sale. The Company evaluates fixed maturity securities classified as held to maturity for current expected credit losses utilizing risk characteristics of each security, including credit rating, remaining time to maturity, adjusted for prepayment considerations, and subordination level, and applying default and recovery rates, which include the incorporation of historical credit loss experience and macroeconomic forecasts, to develop an estimate of current expected credit losses. The Company does not create an allowance for uncollectible interest. If interest is not received when due, the interest receivable is immediately reversed and no additional interest is accrued. If future interest is received that has not been accrued, it is recorded as income at that time. The Company’s assessments are based on the issuers’ current and expected future financial position, timeliness with respect to interest and/or principal payments, speed of repayments and any applicable credit enhancements or breakeven constant default rates on mortgage-backed and asset-backed securities, as well as relevant information provided by rating agencies, investment advisors and analysts. Retrospective adjustments are employed to recalculate the values of asset-backed securities. All of the Company’s asset-backed and mortgage-backed securities have a pass-through structure. Each acquisition lot is reviewed to recalculate the effective yield. The recalculated effective yield is used to derive a book value as if the new yield were applied at the time of acquisition. Outstanding principal factors from the time of acquisition to the adjustment date are used to calculate the prepayment history for all applicable securities. Conditional prepayment rates, computed with life to date factor histories and weighted average maturities, are used in the calculation of projected prepayments for pass-through security types. For equity securities, the Company reflects changes in fair value as net gains (losses) on investments. Interest income on all fixed maturities and dividend income on all equity securities are included as part of net investment income in the consolidated statements of operations and comprehensive income (loss). Short-term investments comprise securities due to mature within one year from the date of purchase and are stated at cost, which approximates fair value. Realized gains or losses on sales of investments are determined on the basis of identified cost. For some non-publicly traded securities, market prices are determined through the use of pricing models that evaluate securities relative to the U.S. Treasury yield curve, taking into account the issue type, credit quality, and cash flow characteristics of each security. For other non-publicly traded securities, investment managers’ valuation committees will estimate fair value, and in many instances, these fair values are supported with opinions from qualified independent third parties. For publicly traded securities, fair value is based on quoted market prices or valuation models that use observable market inputs. When a sector of the financial markets is inactive or illiquid, the Company may use its own assumptions about future cash flows and risk-adjusted discount rates to determine fair value. Other invested assets include limited partnerships, corporate-owned life insurance (“COLI”), rabbi trusts and other investments. Limited partnerships are accounted for under the equity method of accounting, which can be recorded on a monthly or quarterly lag and are included within net investment income. Corporate-owned life insurance policies are carried at policy cash surrender value and changes in the policy cash surrender value are included within net investment income. Other invested assets, at fair value, are comprised of convertible preferred stock of Everest Preferred International Holdings, Ltd. (“Preferred Holdings”), an affiliated entity. The fair values of the Preferred Holdings convertible preferred stock at December 31, 2023 and December 31, 2022 were determined using a pricing model. Cash includes cash on hand. Restricted cash is included within cash in the consolidated balance sheets and represents amounts held for the benefit of third parties that is legally or contractually restricted as to its withdrawal or usage. Amounts include trust funds set up for the benefit of ceding companies. |
Allowance For Premium Receivable And Reinsurance Recoverables | Allowance for Premium Receivable and Reinsurance Recoverables. The Company applies the Current Expected Credit Losses (CECL) methodology for estimating allowances for credit losses. The Company evaluates the recoverability of its premiums and reinsurance recoverable balances and establishes an allowance for estimated uncollectible amounts. Premiums receivable, excluding receivables for losses within a deductible and retrospectively-rated policy premiums, are primarily comprised of premiums due from policyholders/cedents. Balances are considered past due when amounts that have been billed are not collected within contractually stipulated time periods. For these balances, the allowance is estimated based on recent historical credit loss and collection experience, adjusted for current economic conditions and reasonable and supportable forecasts, when appropriate. A portion of the Company's commercial lines business is written with large deductibles or under retrospectively-rated plans. Under some commercial insurance contracts with a large deductible, the Company is obligated to pay the claimant the full amount of the claim and the Company is subsequently reimbursed by the policyholder for the deductible amount. As such, the Company is subject to credit risk until reimbursement is made. Retrospectively-rated policies are policies whereby the ultimate premium is adjusted based on actual losses incurred. Although the premium adjustment feature of a retrospectively-rated policy substantially reduces insurance risk for the Company, it presents credit risk to the Company. The Company’s results of operations could be adversely affected if a significant portion of such policyholders failed to reimburse the Company for the deductible amount or the amount of additional premium owed under retrospectively-rated policies. The Company manages these credit risks through credit analysis, collateral requirements, and oversight. The allowance for receivables for loss within a deductible and retrospectively-rated policy premiums is recorded within other assets in the consolidated balance sheets. The allowance is estimated as the amount of the receivable exposed to loss multiplied by estimated factors for probability of default. The probability of default is assigned based on each policyholder's credit rating, or a rating is estimated if no external rating is available. Credit ratings are reviewed and updated at least annually. The exposure amount is estimated net of collateral and other offsets, considering the nature of the collateral, potential future changes in collateral values, and historical loss information for the type of collateral obtained. The probability of default factors are historical corporate defaults for receivables with similar durations estimated through multiple economic cycles. Credit ratings are forward-looking and consider a variety of economic outcomes. The Company's evaluation of the required allowance for receivables for loss within a deductible and retrospectively-rated policy premiums considers the current economic environment as well as the probability-weighted macroeconomic scenarios. The Company records total credit loss expenses related to premiums receivable in Other underwriting expenses and records credit loss expenses related to deductibles in Incurred losses and loss adjustment expenses in the Company’s consolidated statements of operations and comprehensive income (loss). The allowance for uncollectible reinsurance recoverable reflects management’s best estimate of reinsurance cessions that may be uncollectible in the future due to reinsurers’ unwillingness or inability to pay. The allowance for uncollectible reinsurance recoverable comprises an allowance and an allowance for disputed balances. Based on this analysis, the Company may adjust the allowance for uncollectible reinsurance recoverable or charge off reinsurer balances that are determined to be uncollectible. Due to the inherent uncertainties as to collection and the length of time before reinsurance recoverable become due, it is possible that future adjustments to the Company’s reinsurance recoverable, net of the allowance, could be required, which could have a material adverse effect on the Company’s consolidated results of operations or cash flows in a particular quarter or annual period. The allowance is estimated as the amount of reinsurance recoverable exposed to loss multiplied by estimated factors for the probability of default. The reinsurance recoverable exposed is the amount of reinsurance recoverable net of collateral and other offsets, considering the nature of the collateral, potential future changes in collateral values, and historical loss information for the type of collateral obtained. The probability of default factors are historical insurer and reinsurer defaults for liabilities with similar durations to the reinsured liabilities as estimated through multiple economic cycles. Credit ratings are forward-looking and consider a variety of economic outcomes. The Company's evaluation of the required allowance for reinsurance recoverable considers the current economic environment as well as macroeconomic scenarios. The Company records credit loss expenses related to reinsurance recoverable in Incurred losses and loss adjustment expenses in the Company’s consolidated statements of operations and comprehensive income (loss). Write-offs of reinsurance recoverable and any related allowance are recorded in the period in which the balance is deemed uncollectible. |
Deferred Acquisition Costs | Deferred Acquisition Costs. Acquisition costs, consisting principally of commissions and brokerage expenses and certain premium taxes and fees incurred at the time a contract or policy is issued and that vary with and are directly related to the Company’s reinsurance and insurance business, are deferred and amortized over the period in which the related premiums are earned. Deferred acquisition costs are limited to their estimated realizable value by line of business based on the related unearned premiums, anticipated claims and claim expenses and anticipated investment income. |
Reserve For Losses And Loss Adjustment Expenses | Reserve for Losses and Loss Adjustment Expenses. The reserve for losses and loss adjustment expenses (“LAE”) is based on individual case estimates and reports received from ceding companies. A provision is included for losses and LAE incurred but not reported (“IBNR”) based on past experience. Provisions are also included for certain potential liabilities, including those relating to asbestos and environmental (“A&E”) exposures, catastrophe exposures, COVID-19 and other exposures, for which liabilities cannot be estimated using traditional reserving techniques. See also Note 3. The reserves are reviewed periodically and any changes in estimates are reflected in earnings in the period the adjustment is made. The Company’s loss and LAE reserves represent management’s best estimate of the ultimate liability. Loss and LAE reserves are presented gross of reinsurance recoverable and incurred losses and LAE are presented net of reinsurance. Accruals for commissions are established for reinsurance contracts that provide for the stated commission percentage to increase or decrease based on the loss experience of the contract. Changes in estimates for such arrangements are recorded as commission expense. Commission accruals for contracts with adjustable features are estimated based on expected loss and LAE. |
Premium Revenues | Premium Revenues. Written premiums are earned ratably over the periods of the related insurance and reinsurance contracts. Unearned premium reserves are established relative to the unexpired contract period. For reinsurance contracts, such reserves are established based upon reports received from ceding companies or estimated using pro rata methods based on statistical data. Reinstatement premiums represent additional premium recognized and earned at the time a loss event occurs and losses are recorded, most prevalently catastrophe related, when limits have been depleted under the original reinsurance contract and additional coverage is granted. The recognition of reinstatement premiums is based on estimates of loss and LAE, which reflects management’s judgement. Written and earned premiums and the related costs, which have not yet been reported to the Company, are estimated and accrued. Premiums are net of ceded reinsurance. During 2023, the Company refined its premium estimation methodology for its risk attaching reinsurance contracts within its Reinsurance Segment to continue to recognize gross written premium over the term of the treaty, albeit over a different pattern than what was previously used. The refined estimate resulted in an increase of gross written premium for th e twelve months ended December 31, 2023 period and has further aligned the estimation methodology across the reinsurance division globally. This change had no impact on the total written premium to be recognized over the term of the treaty. There was no impact on net earned premium and therefore, no impact on income from continuing operations, net income, or any related per-share amounts. |
Prepaid Reinsurance Premiums | Prepaid Reinsurance Premiums. Prepaid reinsurance premiums represent unearned premium reserves ceded to other reinsurers. Prepaid reinsurance premiums for any foreign reinsurers comprising more than 10% of the outstanding balance at December 31, 2023 were collateralized either through collateralized trust arrangements, rights of offset or letters of credit, thereby limiting the credit risk to the Company. |
Income Taxes | Income Taxes. The Company and its wholly owned subsidiaries file a consolidated U.S. Corporation Income Tax Return. The Company’s foreign subsidiaries and foreign branches of its U.S. subsidiaries file country and local corporation income tax returns as required. Deferred U.S. federal and foreign income taxes have been recorded to recognize the tax effect of temporary differences between the GAAP and income tax basis of assets and liabilities, which arise because of differences between the financial reporting and income tax rules. As an accounting policy, the Company has adopted the aggregate portfolio approach for releasing disproportionate income tax effects from Accumulated Other Comprehensive Income. |
Foreign Currency | Foreign Currency. The Company transacts business in numerous currencies through business units located around the world. The functional currency for each business unit is determined by the local currency used for most economic activity in that area. Movements in exchange rates related to transactions in currencies other than a business unit’s functional currency for monetary assets and liabilities are measured through the consolidated statements of operations and comprehensive income (loss) in other income (expense), except for currency movements related to available for sale fixed maturity securities, which are excluded from net income (loss) and accumulated in stockholder’s equity, net of deferred taxes. The business units’ functional currency financial statements are translated to the Company’s reporting currency, U.S. dollars, using the exchange rates at the end of period for the balance sheets and the average exchange rates in effect for the reporting period for the statements of operations. Gains and losses resulting from translating the foreign currency financial statements, net of deferred income taxes, are excluded from net income (loss) and accumulated as a separate component of other comprehensive income (loss) in stockholder’s equity. |
Segmentation | Segmentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements. Adoption of New Accounting Standards The Company did not adopt any new accounting standards that had a material impact in 2023. Future Adoption of Recently Issued Accounting Standards The Company assessed the adoption impacts of recently issued accounting standards that are affective after 2023 by the Financial Accounting Standards Board on the Company’s consolidated financial statements. Additionally, the Company assessed whether there have been material updates to previously issued accounting standards that are effective after 2023 . There were no accounting standards identified, other than those directly reference below, that are expected to have a material impact to Holdings. Improvements to Income Tax Disclosures. In December 2023, the Financial Accounting Standards Board issued Accounting Standard Update No. 2023-09, which requires expanded income tax disclosures, including the disaggregation of existing disclosures related to the tax rate reconciliation and income taxes paid. The guidance is effective for annual periods beginning after December 15, 2024. Prospective application is required, with retrospective application permitted. The Company is currently evaluating the effect the updated guidance will have on the Company's financial statement disclosures. |
Fair Value Measurement | GAAP guidance regarding fair value measurements address how companies should measure fair value when they are required to use fair value measures for recognition or disclosure purposes under GAAP and provides a common definition of fair value to be used throughout GAAP. It defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly fashion between market participants at the measurement date. In addition, it establishes a three-level valuation hierarchy for the disclosure of fair value measurements. The valuation hierarchy is based on the transparency of inputs to the valuation of an asset or liability. The level in the hierarchy within which a given fair value measurement falls is determined based on the lowest level input that is significant to the measurement, with Level 1 being the highest priority and Level 3 being the lowest priority. The levels in the hierarchy are defined as follows: Level 1: Inputs to the valuation methodology are observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in an active market; Level 2: Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company’s fixed maturity and equity securities are managed both internally and on an external basis by independent, professional investment managers using portfolio guidelines approved by the Company. The Company obtains prices from nationally recognized pricing services. These services seek to utilize market data and observations in their evaluation process. These services use pricing applications that vary by asset class and incorporate available market information and when fixed maturity securities do not trade on a daily basis the services will apply available information through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing. In addition, they use model processes, such as the Option Adjusted Spread model to develop prepayment and interest rate scenarios for securities that have prepayment features. |
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 a nationally recognized source. Fixed maturity securities listed in the tables have been categorized as Level 2, since a particular security may not have traded but the pricing services are able to use valuation models with observable market inputs such as interest rate yield curves and prices for similar fixed maturity securities in terms of issuer, maturity and seniority. For foreign government securities and foreign corporate securities, the fair values provided by the third party pricing services in local currencies, and where applicable, are converted to U.S. dollars using currency exchange rates from nationally recognized sources. In addition, some of the fixed maturities with fair values categorized as Level 3 result when prices are not available from the nationally recognized pricing services and are obtained from investment managers and are derived using unobservable inputs. The Company will value the securities with unobservable inputs using comparable market information or receive fair values from investment managers. The investment managers may obtain non-binding price quotes for the securities from brokers. The single broker quotes are provided by market makers or broker-dealers who are recognized as market participants in the markets in which they are providing the quotes. The prices received from brokers are reviewed for reasonableness by the third party asset managers and the Company. If the broker quotes are for foreign denominated securities, the quotes are converted to U.S. dollars using currency exchange rates from nationally recognized sources. The fixed maturities with fair values categorized as Level 3 result when prices are not available from the nationally recognized pricing services. The composition and valuation inputs for the presented fixed maturities categories Level 1 and Level 2 are as follows: • U.S. Treasury securities and obligations of U.S. government agencies and corporations are primarily comprised of U.S. Treasury bonds and the fair value is based on observable market inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields; • Obligations of U.S. states and political subdivisions are comprised of state and municipal bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads; • Corporate securities are primarily comprised of U.S. corporate and public utility bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads; • Asset-backed and mortgage-backed securities fair values are based on observable inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields and cash flow models using observable inputs such as prepayment speeds, collateral performance and default spreads; • Foreign government securities are comprised of global non-U.S. sovereign bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source; • Foreign corporate securities are comprised of global non-U.S. corporate bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source. Financial Instruments Disclosed, But Not Reported, at Fair Value |
Leases | The Company enters into lease agreements for real estate that is primarily used for office space in the ordinary course of business. These leases are accounted for as operating leases, whereby lease expense is recognized on a straight-line basis over the term of the lease. Most leases include an option to extend or renew the lease term. The exercise of the renewal is at the Company’s discretion. The operating lease liability includes lease payments related to options to extend or renew the lease term if the Company is reasonably certain of exercise those options. The Company, in determining the present value of lease payments utilizes either the rate implicit in the lease if that rate is readily determinable or the Company’s incremental secured borrowing rate commensurate with terms of the underlying lease. |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost, Allowance for Credit Losses, Gross Unrealized Appreciation/(Depreciation) and Fair Value of Fixed Maturity Securities | The following tables show amortized cost, allowance for credit losses, gross unrealized appreciation, gross unrealized depreciation (“URA(D)”) and fair value of fixed maturity securities - available for sale for the periods indicated: At December 31, 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 $ 265 $ — $ — $ (17) $ 247 Obligations of U.S. states and political subdivisions 138 — 1 (11) 128 Corporate securities 4,400 (47) 96 (160) 4,289 Asset-backed securities 5,307 — 23 (48) 5,282 Mortgage-backed securities Commercial 575 — — (53) 522 Agency residential 2,532 — 27 (124) 2,435 Non-agency residential 429 — 14 (1) 441 Foreign government securities 859 — 15 (39) 835 Foreign corporate securities 1,800 — 35 (82) 1,753 Total fixed maturity securities - available for sale $ 16,304 $ (48) $ 212 $ (536) $ 15,932 (Some amounts may not reconcile due to rounding.) At December 31, 2022 (Dollars in millions) Amortized 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 table shows amortized cost, allowance for credit losses, gross URA(D) and fair value of fixed maturity securities - held to maturity for the periods indicated: At December 31, 2023 (Dollars in millions) Amortized Allowances for Unrealized Unrealized Fair Fixed maturity securities - held to maturity Corporate securities $ 150 $ (2) $ 1 $ (3) $ 146 Asset-backed securities 604 (5) 4 (10) 593 Mortgage-backed securities Commercial 21 — — — 21 Foreign corporate securities 84 (1) 7 — 90 Total fixed maturity securities - held to maturity $ 859 $ (8) $ 12 $ (13) $ 850 (Some amounts may not reconcile due to rounding.) 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.) |
Schedule of Amortized Cost and Fair 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 December 31, 2023 At December 31, 2022 (Dollars in millions) Amortized Fair Amortized Fair Fixed maturity securities – available for sale Due in one year or less $ 546 $ 537 $ 581 $ 563 Due after one year through five years 2,402 2,310 3,684 3,429 Due after five years through ten years 2,842 2,784 2,003 1,760 Due after ten years 1,672 1,621 958 827 Asset-backed securities 5,307 5,282 4,111 3,951 Mortgage-backed securities Commercial 575 522 569 509 Agency residential 2,532 2,435 1,792 1,628 Non-agency residential 429 441 3 3 Total fixed maturity securities - available for sale $ 16,304 $ 15,932 $ 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 December 31, 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 59 58 63 61 Due after five years through ten years 43 42 43 41 Due after ten years 127 131 68 65 Asset-backed securities 604 593 634 614 Mortgage-backed securities Commercial 21 21 7 7 Total fixed maturity securities - held to maturity $ 859 $ 850 $ 820 $ 793 (Some amounts may not reconcile due to rounding.) |
Schedule of Changes in Net Unrealized Appreciation (Depreciation) for Investments | The changes in net URA(D) for the Company’s investments are as follows: Years Ended December 31, (Dollars in millions) 2023 2022 Increase (decrease) during the period between the fair value and cost of investments carried at fair value, and deferred taxes thereon: Fixed maturity securities - available fore sale and short-term investments $ 667 $ (1,187) Change in unrealized appreciation (depreciation), pre-tax 667 (1,187) Deferred tax benefit (expense) (140) 249 Change in URA(D), net of deferred taxes, included in stockholder's equity $ 527 $ (938) (Some amounts may not reconcile due to rounding.) |
Schedule of Aggregate Fair Value and Gross Unrealized Depreciation of Fixed Maturity Securities - Available for Sale, by Security Type | 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, 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 $ 7 $ — $ 238 $ (17) $ 245 $ (17) Obligations of U.S. states and political subdivisions 3 — 74 (11) 77 (11) Corporate securities 673 (47) 1,150 (112) 1,822 (160) Asset-backed securities 179 (2) 1,958 (46) 2,138 (48) Mortgage-backed securities Commercial 19 — 491 (53) 511 (53) Agency residential 203 (2) 1,030 (123) 1,233 (124) Non-agency residential 125 (1) 3 — 128 (1) Foreign government securities 38 (1) 423 (38) 461 (39) Foreign corporate securities 120 (2) 821 (80) 940 (82) Total $ 1,367 $ (54) $ 6,187 $ (481) $ 7,554 $ (536) Securities where an allowance for credit loss was recorded 2 (1) — — 2 (1) Total fixed maturity securities - available for sale $ 1,369 $ (55) $ 6,187 $ (481) $ 7,556 $ (536) (Some amounts may not reconcile due to rounding.) 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.) |
Schedule of Aggregate Fair Value and Gross Unrealized Depreciation of Fixed Maturity Securities - Available for Sale, by Contractual Maturity | Duration of Unrealized Loss at December 31, 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 $ 84 $ (1) $ 263 $ (10) $ 348 $ (11) Due in one year through five years 227 (5) 1,317 (96) 1,544 (101) Due in five years through ten years 150 (5) 951 (128) 1,101 (133) Due after ten years 379 (39) 174 (25) 553 (64) Asset-backed securities 179 (2) 1,958 (46) 2,138 (48) Mortgage-backed securities 347 (3) 1,523 (176) 1,871 (179) Total $ 1,367 $ (54) $ 6,187 $ (481) $ 7,554 $ (536) Securities where an allowance for credit loss was recorded 2 (1) — — 2 (1) Total fixed maturity securities - available for sale $ 1,369 $ (55) $ 6,187 $ (481) $ 7,556 $ (536) (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.) |
Schedule of Components of Net Investment Income | The components of net investment income are presented in the table below for the periods indicated: Years Ended December 31, (Dollars in millions) 2023 2022 2021 Fixed maturities $ 822 $ 510 $ 344 Equity securities 3 16 15 Short-term investments and cash 74 16 1 Other invested assets Limited partnerships 37 72 321 Dividends from preferred shares of affiliate 31 31 31 Other 59 30 63 Gross investment income before adjustments 1,027 675 774 Funds held interest income (expense) 3 6 8 Interest income from Parent 7 11 6 Gross investment income 1,038 691 788 Investment expenses 46 52 43 Net investment income $ 993 $ 638 $ 745 (Some amounts may not reconcile due to rounding.) |
Schedule of Components of Net Gains (Losses) on Investments | The components of net gains (losses) on investments are presented in the table below for the periods indicated: Years Ended December 31, (Dollars in millions) 2023 2022 2021 Fixed maturity securities: Allowances for credit losses $ (1) $ (27) $ (26) Net realized gains (losses) from dispositions (192) (79) 8 Gains (losses) from fair value adjustments — — — Equity securities: Net realized gains (losses) from dispositions 8 117 24 Gains (losses) from fair value adjustments (4) (447) 254 Other invested assets — 13 6 Other invested assets, fair value: Gains (losses) from fair value adjustments 9 (558) 234 Short-term investment gains (losses) — — — Total net gains (losses) on investments $ (180) $ (982) $ 501 (Some amounts may not reconcile due to rounding.) |
Schedule of Fixed Maturities, Allowance for Credit Loss, Held-to-Maturity Rollforward | 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 Twelve Months Ended December 31, 2023 Corporate Asset-Backed Foreign Total (Dollars in millions) Balance, beginning of period $ (45) $ — $ (1) $ (46) Credit losses on securities where credit losses were not previously recorded (23) — — (23) Increases in allowance on previously impaired securities (1) — — (1) Decreases in allowance on previously impaired securities — — — — Reduction in allowance due to disposals 21 — 1 22 Balance, end of period $ (47) $ — $ — $ (48) (Some amounts may not reconcile due to rounding.) Roll Forward of Allowance for Credit Losses - Fixed Maturities - Held to Maturity Twelve Months Ended December 31, 2023 Corporate Asset-Backed Foreign Total (Dollars in millions) Balance, beginning of period $ (2) $ (6) $ (1) $ (9) Credit losses on securities where credit losses were not previously recorded — — — — Increases in allowance on previously impaired securities — — — — Decreases in allowance on previously impaired securities — — — — Reduction in allowance due to disposals — 1 — 1 Balance, end of period $ (2) $ (5) $ (1) $ (8) (Some amounts may not reconcile due to rounding.) Roll Forward of Allowance for Credit Losses - Fixed Maturities - Available for Sale Twelve Months Ended December 31, 2022 Corporate Asset-Backed Foreign Total (Dollars in millions) Balance, beginning of period $ (19) $ (8) $ — $ (27) Credit losses on securities where credit losses were not previously recorded (11) — (1) (12) Increases in allowance on previously impaired securities (20) — — (21) Decreases in allowance on previously impaired securities — — — — Reduction in allowance due to disposals 6 8 1 14 Balance, end of period $ (45) $ — $ (1) $ (46) (Some amounts may not reconcile due to rounding.) Roll Forward of Allowance for Credit Losses - Fixed Maturities - Held to Maturity Twelve Months Ended December 31, 2022 Corporate Asset-Backed Foreign Total (Dollars in millions) Balance, beginning of period $ — $ — $ — $ — Credit losses on securities where credit losses were not previously recorded (2) (6) (1) (9) Increases in allowance on previously impaired securities — — — — Decreases in allowance on previously impaired securities — — — — Reduction in allowance due to disposals — — — — Balance, end of period $ (2) $ (6) $ (1) $ (9) |
Schedule of Gross Gains (Losses) from Dispositions of Fixed Maturity and Equity Securities | The proceeds and split between gross gains and losses from sales of fixed maturity securities - available for sale and equity securities, are presented in the table below for the periods indicated: Years Ended December 31, (Dollars in millions) 2023 2022 2021 Proceeds from sales of fixed maturity securities - available for sale $ 2,546 $ 2,645 $ 961 Gross gains from dispositions 12 9 33 Gross losses from dispositions (204) (88) (24) Proceeds from sales of equity securities $ 126 $ 2,203 $ 862 Gross gains from dispositions 8 165 39 Gross losses from dispositions — (48) (15) |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurement Levels for all Assets, Recorded at Fair Value | The following table presents the fair value measurement levels for all assets, which the Company has recorded at fair value as of the period indicated: Fair Value Measurement Using: (Dollars in millions) December 31, Quoted Prices Significant Significant Assets: Fixed maturities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 247 $ — $ 247 $ — Obligations of U.S. states and political subdivisions 128 — 128 — Corporate securities 4,289 — 3,617 672 Asset-backed securities 5,282 — 3,977 1,305 Mortgage-backed securities Commercial 522 — 522 — Agency residential 2,435 — 2,435 — Non-agency residential 441 — 441 — Foreign government securities 835 — 835 — Foreign corporate securities 1,753 — 1,737 16 Total fixed maturities - available for sale 15,932 — 13,939 1,993 Equity securities, fair value 91 70 21 — Other invested assets, fair value 1,481 — — 1,481 (Some amounts may not reconcile due to rounding.) Fair Value Measurement Using: (Dollars in millions) December 31, 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.) |
Schedule of Activity Under Level 3, Fair Value Measurements Using Significant Unobservable Inputs for Fixed Maturities - Available for Sale | The following table presents the activity under Level 3, fair value measurements using significant unobservable inputs for fixed maturities - available for sale, for the periods indicated: Total Fixed Maturities - Available for Sale December 31, 2023 December 31, 2022 (Dollars in millions) Corporate Asset-Backed CMBS Foreign Total Corporate Asset-Backed CMBS Foreign Total Beginning balance fixed maturities $ 715 $ 994 $ — $ 16 $ 1,725 $ 730 $ 1,251 $ — $ 16 $ 1,997 Total gains or (losses) (realized/unrealized) Included in earnings (or changes in net assets) 4 — — — 4 (24) — — — (24) Included in other comprehensive income (loss) (2) 6 — — 4 3 (35) — (4) (36) Purchases, issuances and settlements (45) 305 — — 260 40 513 6 8 567 Transfers in (out) of Level 3 and reclassification of securities in/(out) investment categories — — — — — (35) (735) (6) (4) (779) Ending balance $ 672 $ 1,305 $ — $ 16 $ 1,993 $ 715 $ 994 $ — $ 16 $ 1,725 The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date $ 9 $ — $ — $ — $ 9 $ (23) $ 8 $ — $ — $ (15) (Some amounts may not reconcile due to rounding.) |
RESERVES FOR LOSSES AND LAE (Ta
RESERVES FOR LOSSES AND LAE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Insurance [Abstract] | |
Schedule of Activity in the Reserve for Losses and Loss Adjustment Expenses (“LAE”) | The following table provides a roll forward of the Company’s beginning and ending reserves for losses and LAE and is summarized for the periods indicated: At December 31, (Dollars in millions) 2023 2022 2021 Gross reserves beginning of period $ 14,977 $ 13,121 $ 11,578 Less reinsurance recoverables on unpaid losses (3,684) (3,651) (3,951) Net reserves beginning of period 11,294 9,470 7,627 Incurred related to: Current year 5,599 5,815 5,382 Prior years (21) 7 5 Total incurred losses and LAE 5,578 5,823 5,387 Paid related to: Current year 1,169 1,097 2,374 Prior years 3,128 2,867 1,127 Total paid losses and LAE 4,298 3,964 3,501 Foreign exchange/translation adjustment 40 (35) (42) Net reserves end of period 12,614 11,294 9,470 Plus reinsurance recoverables on unpaid losses 3,182 3,684 3,651 Gross reserves end of period $ 15,796 $ 14,977 $ 13,121 (Some amounts may not reconcile due to rounding.) |
Schedule of Reconciliation of the Net Incurred and Paid Claims Development | The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated statement of financial position is as follows. At December 31, 2023 (Dollars in millions) Net outstanding liabilities Reinsurance Casualty $ 5,433 Reinsurance Property 3,161 Insurance Casualty 3,310 Insurance Property 493 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance 12,396 Reinsurance recoverable on unpaid claims Reinsurance Casualty 492 Reinsurance Property 816 Insurance Casualty 1,695 Insurance Property 179 Total reinsurance recoverable on unpaid claims 3,182 Unallocated claims adjustment expenses 184 Other 33 218 Total gross liability for unpaid claims and claim adjustment expense $ 15,796 (Some amounts may not reconcile due to rounding.) |
Schedule of Incurred Loss And ALAE And Paid Loss And ALAE, Net Of Reinsurance | Reinsurance - Casualty Business At December 31, 2023 Total of Cumulative Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Accident (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (Dollars in millions) 2014 $ 341 $ 327 $ 258 $ 229 $ 229 $ 229 $ 229 $ 229 $ 229 $ 229 — N/A 2015 294 250 238 238 238 238 238 238 238 6 N/A 2016 243 239 239 239 239 239 239 239 18 N/A 2017 198 204 204 204 204 204 204 50 N/A 2018 814 799 845 867 919 1,029 115 N/A 2019 1,009 1,057 1,058 1,073 1,109 285 N/A 2020 1,085 1,057 1,026 1,017 373 N/A 2021 1,358 1,351 1,309 693 N/A 2022 1,331 1,290 912 N/A 2023 1,634 1,283 N/A $ 8,299 (Some amounts may not reconcile due to rounding.) Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Accident Year (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (Dollars in millions) 2014 $ 15 $ 36 $ 77 $ 107 $ 145 $ 175 $ 184 $ 188 $ 211 $ 216 2015 16 39 86 147 168 188 194 209 216 2016 18 54 89 143 161 187 214 220 2017 27 87 110 123 150 180 187 2018 132 200 318 415 473 510 2019 165 265 381 487 531 2020 146 237 334 447 2021 156 230 377 2022 105 222 2023 175 $ 3,101 All outstanding liabilities prior to 2014, net of reinsurance 235 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 5,433 (Some amounts may not reconcile due to rounding.) Average Annual Percentage Payout of Incurred Loss by Age, Net of Reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Casualty 11.5 % 8.9 % 11.6 % 11.7 % 6.8 % 7.3 % 5.5 % 3.6 % 6.3 % 2.0 % Reinsurance - Property Business At December 31, 2023 Total of Cumulative Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Accident (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (Dollars in millions) 2014 $ 715 $ 527 $ 369 $ 339 $ 340 $ 340 $ 340 $ 340 $ 340 $ 340 3 N/A 2015 640 341 311 311 311 311 311 311 311 1 N/A 2016 612 631 632 628 627 627 627 628 2 N/A 2017 1,262 1,847 2,015 2,109 2,162 2,200 2,203 2 N/A 2018 2,214 2,103 2,093 2,041 2,011 1,982 (1) N/A 2019 1,658 1,664 1,591 1,486 1,479 (7) N/A 2020 1,843 1,887 1,827 1,805 23 N/A 2021 2,140 2,126 2,068 87 N/A 2022 2,535 2,223 549 N/A 2023 1,958 980 N/A $ 14,996 (Some amounts may not reconcile due to rounding.) Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Accident (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (Dollars in millions) 2014 $ 145 $ 222 $ 273 $ 301 $ 317 $ 319 $ 323 $ 325 $ 332 $ 339 2015 148 213 261 276 282 287 291 300 314 2016 223 475 569 575 580 582 592 603 2017 773 1,529 1,887 2,011 2,105 2,181 2,219 2018 470 1,358 1,652 1,808 1,866 1,909 2019 656 1,016 1,258 1,376 1,472 2020 528 1,100 1,408 1,590 2021 625 1,274 1,634 2022 548 1,209 2023 525 $ 11,815 All outstanding liabilities prior to 2014, net of reinsurance (20) Liabilities for claims and claim adjustment expenses, net of reinsurance $ 3,161 (Some amounts may not reconcile due to rounding.) Average Annual Percentage Payout of Incurred Loss by Age, Net of Reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Property 30.9 % 32.8 % 16.2 % 7.2 % 3.9 % 2.4 % 1.6 % 1.7 % 3.3 % 1.9 % Insurance - Casualty Business At December 31, 2023 Total of Cumulative Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Accident (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (Dollars in millions) 2014 $ 238 $ 239 $ 241 $ 255 $ 255 $ 255 $ 256 $ 256 $ 256 $ 256 1 24,779 2015 259 259 277 277 277 266 266 269 278 4 26,300 2016 351 276 279 281 288 287 281 281 — 30,606 2017 304 237 238 237 236 232 235 — 34,567 2018 645 644 666 689 698 793 135 35,301 2019 768 756 794 814 996 194 39,356 2020 817 792 793 841 287 38,099 2021 1,112 1,112 1,106 457 44,387 2022 1,039 1,054 450 45,829 2023 1,236 620 36,309 $ 7,076 (Some amounts may not reconcile due to rounding.) Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Accident (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (Dollars in millions) 2014 $ 20 $ 72 $ 114 $ 144 $ 229 $ 229 $ 250 $ 253 $ 254 $ 255 2015 20 68 117 199 244 259 263 266 270 2016 25 101 276 299 308 313 318 321 2017 23 151 157 217 233 239 243 2018 63 189 271 383 435 476 2019 11 217 350 489 598 2020 82 209 340 448 2021 201 339 521 2022 222 470 2023 193 $ 3,793 All outstanding liabilities prior to 2014, net of reinsurance 27 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 3,310 (Some amounts may not reconcile due to rounding.) Average Annual Percentage Payout of Incurred Loss by Age, Net of Reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Casualty 12.1 % 19.7 % 16.7 % 15.0 % 11.1 % 3.6 % 3.2 % 1.1 % 0.9 % 0.2 % Insurance - Property Business At December 31, 2023 Total of Cumulative Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Accident Year (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (Dollars in millions) 2014 $ 76 $ 89 $ 84 $ 82 $ 82 $ 82 $ 82 $ 82 $ 82 $ 82 — N/A 2015 96 93 93 92 95 107 107 103 95 — N/A 2016 150 186 180 177 175 174 181 181 — N/A 2017 233 300 303 309 322 332 329 — N/A 2018 382 380 392 390 395 402 5 N/A 2019 350 367 359 365 378 7 N/A 2020 524 523 513 478 24 N/A 2021 557 550 578 31 N/A 2022 708 711 115 N/A 2023 638 164 N/A $ 3,872 (Some amounts may not reconcile due to rounding.) Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Accident (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (Dollars in millions) 2014 $ 45 $ 77 $ 81 $ 81 $ 82 $ 82 $ 82 $ 82 $ 82 $ 82 2015 51 82 91 91 91 94 94 94 95 2016 78 162 180 175 178 180 180 181 2017 164 298 287 305 321 329 329 2018 238 349 376 388 391 396 2019 224 346 357 364 367 2020 271 374 395 453 2021 361 515 537 2022 390 548 2023 391 $ 3,379 All outstanding liabilities prior to 2014, net of reinsurance — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 493 (Some amounts may not reconcile due to rounding.) Average Annual Percentage Payout of Incurred Loss by Age, Net of Reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Property 57.1 % 29.8 % 4.0 % 4.7 % 1.8 % 1.6 % 0.2 % 0.7 % 0.2 % 0.1 % |
Schedule of Average Annual Percentage Payout Incurred Claims By Age, Net Of Reinsurance | Reinsurance - Casualty Business At December 31, 2023 Total of Cumulative Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Accident (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (Dollars in millions) 2014 $ 341 $ 327 $ 258 $ 229 $ 229 $ 229 $ 229 $ 229 $ 229 $ 229 — N/A 2015 294 250 238 238 238 238 238 238 238 6 N/A 2016 243 239 239 239 239 239 239 239 18 N/A 2017 198 204 204 204 204 204 204 50 N/A 2018 814 799 845 867 919 1,029 115 N/A 2019 1,009 1,057 1,058 1,073 1,109 285 N/A 2020 1,085 1,057 1,026 1,017 373 N/A 2021 1,358 1,351 1,309 693 N/A 2022 1,331 1,290 912 N/A 2023 1,634 1,283 N/A $ 8,299 (Some amounts may not reconcile due to rounding.) Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Accident Year (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (Dollars in millions) 2014 $ 15 $ 36 $ 77 $ 107 $ 145 $ 175 $ 184 $ 188 $ 211 $ 216 2015 16 39 86 147 168 188 194 209 216 2016 18 54 89 143 161 187 214 220 2017 27 87 110 123 150 180 187 2018 132 200 318 415 473 510 2019 165 265 381 487 531 2020 146 237 334 447 2021 156 230 377 2022 105 222 2023 175 $ 3,101 All outstanding liabilities prior to 2014, net of reinsurance 235 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 5,433 (Some amounts may not reconcile due to rounding.) Average Annual Percentage Payout of Incurred Loss by Age, Net of Reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Casualty 11.5 % 8.9 % 11.6 % 11.7 % 6.8 % 7.3 % 5.5 % 3.6 % 6.3 % 2.0 % Reinsurance - Property Business At December 31, 2023 Total of Cumulative Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Accident (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (Dollars in millions) 2014 $ 715 $ 527 $ 369 $ 339 $ 340 $ 340 $ 340 $ 340 $ 340 $ 340 3 N/A 2015 640 341 311 311 311 311 311 311 311 1 N/A 2016 612 631 632 628 627 627 627 628 2 N/A 2017 1,262 1,847 2,015 2,109 2,162 2,200 2,203 2 N/A 2018 2,214 2,103 2,093 2,041 2,011 1,982 (1) N/A 2019 1,658 1,664 1,591 1,486 1,479 (7) N/A 2020 1,843 1,887 1,827 1,805 23 N/A 2021 2,140 2,126 2,068 87 N/A 2022 2,535 2,223 549 N/A 2023 1,958 980 N/A $ 14,996 (Some amounts may not reconcile due to rounding.) Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Accident (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (Dollars in millions) 2014 $ 145 $ 222 $ 273 $ 301 $ 317 $ 319 $ 323 $ 325 $ 332 $ 339 2015 148 213 261 276 282 287 291 300 314 2016 223 475 569 575 580 582 592 603 2017 773 1,529 1,887 2,011 2,105 2,181 2,219 2018 470 1,358 1,652 1,808 1,866 1,909 2019 656 1,016 1,258 1,376 1,472 2020 528 1,100 1,408 1,590 2021 625 1,274 1,634 2022 548 1,209 2023 525 $ 11,815 All outstanding liabilities prior to 2014, net of reinsurance (20) Liabilities for claims and claim adjustment expenses, net of reinsurance $ 3,161 (Some amounts may not reconcile due to rounding.) Average Annual Percentage Payout of Incurred Loss by Age, Net of Reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Property 30.9 % 32.8 % 16.2 % 7.2 % 3.9 % 2.4 % 1.6 % 1.7 % 3.3 % 1.9 % Insurance - Casualty Business At December 31, 2023 Total of Cumulative Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Accident (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (Dollars in millions) 2014 $ 238 $ 239 $ 241 $ 255 $ 255 $ 255 $ 256 $ 256 $ 256 $ 256 1 24,779 2015 259 259 277 277 277 266 266 269 278 4 26,300 2016 351 276 279 281 288 287 281 281 — 30,606 2017 304 237 238 237 236 232 235 — 34,567 2018 645 644 666 689 698 793 135 35,301 2019 768 756 794 814 996 194 39,356 2020 817 792 793 841 287 38,099 2021 1,112 1,112 1,106 457 44,387 2022 1,039 1,054 450 45,829 2023 1,236 620 36,309 $ 7,076 (Some amounts may not reconcile due to rounding.) Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Accident (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (Dollars in millions) 2014 $ 20 $ 72 $ 114 $ 144 $ 229 $ 229 $ 250 $ 253 $ 254 $ 255 2015 20 68 117 199 244 259 263 266 270 2016 25 101 276 299 308 313 318 321 2017 23 151 157 217 233 239 243 2018 63 189 271 383 435 476 2019 11 217 350 489 598 2020 82 209 340 448 2021 201 339 521 2022 222 470 2023 193 $ 3,793 All outstanding liabilities prior to 2014, net of reinsurance 27 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 3,310 (Some amounts may not reconcile due to rounding.) Average Annual Percentage Payout of Incurred Loss by Age, Net of Reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Casualty 12.1 % 19.7 % 16.7 % 15.0 % 11.1 % 3.6 % 3.2 % 1.1 % 0.9 % 0.2 % Insurance - Property Business At December 31, 2023 Total of Cumulative Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Accident Year (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (Dollars in millions) 2014 $ 76 $ 89 $ 84 $ 82 $ 82 $ 82 $ 82 $ 82 $ 82 $ 82 — N/A 2015 96 93 93 92 95 107 107 103 95 — N/A 2016 150 186 180 177 175 174 181 181 — N/A 2017 233 300 303 309 322 332 329 — N/A 2018 382 380 392 390 395 402 5 N/A 2019 350 367 359 365 378 7 N/A 2020 524 523 513 478 24 N/A 2021 557 550 578 31 N/A 2022 708 711 115 N/A 2023 638 164 N/A $ 3,872 (Some amounts may not reconcile due to rounding.) Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Accident (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (Dollars in millions) 2014 $ 45 $ 77 $ 81 $ 81 $ 82 $ 82 $ 82 $ 82 $ 82 $ 82 2015 51 82 91 91 91 94 94 94 95 2016 78 162 180 175 178 180 180 181 2017 164 298 287 305 321 329 329 2018 238 349 376 388 391 396 2019 224 346 357 364 367 2020 271 374 395 453 2021 361 515 537 2022 390 548 2023 391 $ 3,379 All outstanding liabilities prior to 2014, net of reinsurance — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 493 |
Schedule of Incurred Losses With Respect to A&E Reserve on Both Gross and Net of Reinsurance Basis | The following table summarizes incurred losses with respect to A&E reserves on both a gross and net of reinsurance basis for the periods indicated: At December 31, (Dollars in millions) 2023 2022 2021 Gross basis: Beginning of period reserves $ 278 $ 175 $ 219 Incurred losses — 144 11 Paid losses (31) (42) (55) End of period reserves $ 246 $ 278 $ 175 Net basis: Beginning of period reserves $ 210 $ 128 $ 167 Incurred losses — 113 (3) Paid losses (21) (32) (36) End of period reserves $ 189 $ 210 $ 128 |
REINSURANCE (Tables)
REINSURANCE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Reinsurance Disclosures [Abstract] | |
Schedule of Premiums Written And Earned And Incurred Losses | Premiums written and earned and incurred losses and LAE are comprised of the following for the periods indicated: Years Ended December 31, (Dollars in millions) 2023 2022 2021 Written premiums: Direct $ 3,785 $ 3,701 $ 3,300 Assumed 7,332 5,975 6,031 Ceded (1,905) (1,645) (1,612) Net written premiums $ 9,212 $ 8,032 $ 7,719 Premiums earned: Direct $ 3,709 $ 3,544 $ 2,982 Assumed 6,705 5,945 5,741 Ceded (1,878) (1,613) (1,544) Net premiums earned $ 8,536 $ 7,876 $ 7,179 Incurred losses and LAE: Direct $ 2,594 $ 2,423 $ 2,043 Assumed 3,449 4,107 3,872 Ceded (465) (708) (528) Net incurred losses and LAE $ 5,578 $ 5,823 $ 5,387 |
Schedule of 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 ("whole account quota share") for all new and renewal business for the indicated coverage period: (Dollars in millions) Coverage Period Ceding Company Percent Assuming Type of Business Single Aggregate 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) 0 01/01/2011-12/31/2011 Everest Re- Canadian Branch 60.0 % Bermuda Re Property Business 350 (1) 0 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 - 0 01/01/2020 Everest International Assurance 100.0 % Bermuda Re Life Business - 0 (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 Transferring Assuming % of Business or Covered Period 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 |
Schedule of Premiums And Losses Ceded By The Company To Affiliate | The following tables summarize the significant premiums and losses ceded and assumed by the Company in transactions with affiliated entities for the periods indicated: Bermuda Re Years Ended December 31, (Dollars in millions) 2023 2022 2021 Ceded written premiums $ 432 $ 372 $ 303 Ceded earned premiums 431 371 300 Ceded losses and LAE (15) (16) (59) Assumed written premiums 4 3 5 Assumed earned premiums 4 5 4 Ireland Re Years Ended December 31, (Dollars in millions) 2023 2022 2021 Assumed written premiums $ 13 $ 10 $ 16 Assumed earned premiums 12 10 15 Assumed losses and LAE 2 23 64 Ireland Insurance Years Ended December 31, (Dollars in millions) 2023 2022 2021 Assumed written premiums $ 14 $ 9 $ 9 Assumed earned premiums 17 8 6 Assumed losses and LAE 7 5 3 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 Years Ended December 31, (Dollars in millions) 2023 2022 2021 Ceded written premiums $ 210 $ 170 $ 286 Ceded earned premiums 205 174 280 Ceded losses and LAE 31 150 194 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 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: Year Ended December 31, 2023 (Dollars in millions) Reinsurance Insurance Total Gross written premiums $ 7,181 $ 3,936 $ 11,117 Net written premiums 6,205 3,007 9,212 Premiums earned $ 5,637 $ 2,900 $ 8,536 Incurred losses and LAE 3,329 2,249 5,578 Commission and brokerage 1,545 306 1,851 Other underwriting expenses 167 407 574 Underwriting gain (loss) $ 596 $ (64) $ 533 Net investment income 993 Net gains (losses) on investments (180) Corporate expenses (18) Interest, fee and bond issue cost amortization expense (134) Other income (expense) (11) Income (loss) before taxes $ 1,181 (Some amounts may not reconcile due to rounding.) Year Ended December 31, 2022 (Dollars in millions) Reinsurance Insurance Total Gross written premiums $ 5,879 $ 3,798 $ 9,677 Net written premiums 5,204 2,828 8,032 Premiums earned $ 5,147 $ 2,729 $ 7,876 Incurred losses and LAE 3,926 1,897 5,823 Commission and brokerage 1,308 325 1,632 Other underwriting expenses 138 364 501 Underwriting gain (loss) $ (224) $ 144 $ (81) Net investment income 638 Net gains (losses) on investments (982) Corporate expenses (26) Interest, fee and bond issue cost amortization expense (101) Other income (expense) (6) Income (loss) before taxes $ (557) (Some amounts may not reconcile due to rounding.) Year Ended December 31, 2021 (Dollars in millions) Reinsurance Insurance Total Gross written premiums $ 5,979 $ 3,352 $ 9,331 Net written premiums 5,217 2,503 7,719 Premiums earned $ 4,899 $ 2,279 $ 7,179 Incurred losses and LAE 3,750 1,637 5,387 Commission and brokerage 1,229 284 1,513 Other underwriting expenses 142 312 454 Underwriting gain (loss) $ (220) $ 46 $ (175) Net investment income 745 Net gains (losses) on investments 501 Corporate expenses (33) Interest, fee and bond issue cost amortization expense (70) Other income (expense) 23 Income (loss) before taxes $ 991 (Some amounts may not reconcile due to rounding.) |
SENIOR NOTES (Tables)
SENIOR NOTES (Tables) | 12 Months Ended |
Dec. 31, 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. December 31, 2023 December 31, 2022 (Dollars in millions) Date Issued Date Due Principal Consolidated Fair Consolidated Fair 4.868% Senior notes 06/05/2014 06/01/2044 400 $ 398 $ 369 $ 397 $ 343 3.5% Senior notes 10/07/2020 10/15/2050 1,000 981 742 981 677 3.125% Senior notes 10/04/2021 10/15/2052 1,000 970 688 969 627 2,400 $ 2,349 $ 1,799 $ 2,347 $ 1,647 |
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: Years Ended December 31, (Dollars in millions) Interest Paid Payable Dates 2023 2022 2021 4.868% Senior notes semi-annually June 1/December 1 $ 19 $ 19 $ 19 3.5% Senior notes semi-annually April 15/October 15 35 35 35 3.125% Senior notes semi-annually April 15/October 15 32 32 8 $ 86 $ 86 $ 62 |
LONG-TERM SUBORDINATED NOTES (T
LONG-TERM SUBORDINATED NOTES (Tables) | 12 Months Ended |
Dec. 31, 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. 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. December 31, 2023 December 31, 2022 Date Issued Original Maturity Date Consolidated Fair Consolidated Fair (Dollars in millions) Scheduled Final Long-term subordinated notes 04/26/2007 $ 400 05/15/2037 05/01/2067 $ 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: Years Ended December 31, (Dollars in millions) 2023 2022 2021 Interest expense incurred $ 17 $ 9 $ 6 |
COLLATERALIZED REINSURANCE, T_2
COLLATERALIZED REINSURANCE, TRUST AGREEMENTS AND OTHER RESTRICTED ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Collateralized Reinsurance And Trust Agreements [Abstract] | |
Schedule of Restricted Assets | The following table summarizes the Company’s restricted assets: At December 31, (Dollars in millions) 2023 2022 Collateral in trust for non-affiliated agreements (1) $ 825 $ 705 Collateral for FHLB borrowings 1,077 572 Securities on deposit with or regulated by government authorities 1,447 1,360 Funds held by reinsureds 306 303 Total restricted assets $ 3,654 $ 2,941 (1) At December 31, 2023 and December 31, 2022, the total amount on deposit in trust accounts includes $116 million and $21 million of restricted cash respectively. |
Schedule of Collateralized Reinsurance Agreements | The table below summarizes the various agreements: (Dollars in millions) Class Description Effective Date Expiration Date Limit Coverage 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 December 31, 2023 $ 1,375 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Estimated Cost To Replace All Such Annuities For Which The Company Was Contingently Liable | The table below presents the estimated cost to replace all such annuities for which the Company was contingently liable for the periods indicated: At December 31, (Dollars in millions) 2023 2022 The Prudential $ 136 $ 137 Other unaffiliated life insurance company 34 34 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Supplemental Information Relating to Operating Leases | Supplemental information related to operating leases is as follows for the periods indicated: Year Ended December 31, (Dollars in millions) 2023 2022 Lease expense incurred: Operating lease cost $ 26 $ 25 At December 31, (Dollars in millions) 2023 2022 Operating lease right of use assets (1) $ 111 $ 121 Operating lease liabilities (1) 130 139 (1) Operating lease right of use assets and operating lease liabilities are included within other assets and other liabilities on the Company’s consolidated balance sheets, respectively. Year Ended December 31, (Dollars in millions) 2023 2022 Operating cash flows from operating leases $ (19) $ (18) At December 31, 2023 2022 Weighted average remaining operating lease term 10.3 years 11.1 years Weighted average discount rate on operating leases 4.03 % 4.00 % |
Schedule of Maturities of Lease Liabilities | Maturities of the existing lease liabilities are expected to occur as follows: (Dollars in millions) 2024 $ 20 2025 16 2026 15 2027 14 2028 12 Thereafter 78 Undiscounted lease payments 155 Less: present value adjustment 26 Total operating lease liability $ 130 |
COMPREHENSIVE INCOME (LOSS) (Ta
COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Comprehensive Income (Loss), Tax [Abstract] | |
Schedule of Components of Comprehensive Income (Loss) in the Consolidated Statements of Operations | The following table presents the components of comprehensive income (loss) in the consolidated statements of operations for the periods indicated: December 31, 2023 December 31, 2022 December 31, 2021 (Dollars in millions) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax URA(D) on securities - temporary $ 473 (99) $ 374 $ (1,280) 269 $ (1,011) $ (254) 53 $ (200) Reclassification of net realized losses (gains) included in net income (loss) 193 (41) 153 93 (20) 73 12 (3) 9 Foreign currency translation adjustments 22 (5) 17 (23) 5 (18) (11) 2 (9) Benefit plan actuarial net gain (loss) 19 (4) 15 18 (4) 15 22 (5) 17 Reclassification of amortization of net gain (loss) included in net income (loss) 2 — 2 3 (1) 2 8 (2) 6 Total other comprehensive income (loss) $ 710 $ (149) $ 561 $ (1,189) $ 249 $ (939) $ (223) $ 47 $ (177) (Some amounts may not reconcile due to rounding) |
Schedule of Reclassification from Accumulated Other Comprehensive Income | The following table presents details of the amounts reclassified from AOCI for the periods indicated: Years Ended December 31, Affected line item within the AOCI component 2023 2022 (Dollars in millions) URA(D) on securities $ 193 $ 93 Other net realized capital gains (losses) (41) (20) Income tax expense (benefit) $ 153 $ 73 Net income (loss) Benefit plan net gain (loss) $ 2 $ 3 Other underwriting expenses — (1) Income tax expense (benefit) $ 2 $ 2 Net income (loss) (Some amounts may not reconcile due to rounding) |
Schedule of 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: Years Ended December 31, (Dollars in millions) 2023 2022 Beginning balance of URA(D) on securities $ (816) $ 122 Current period change in URA(D) of investments - temporary 527 (938) Ending balance of URA(D) on securities (289) (816) Beginning balance of foreign currency translation adjustments 2 20 Current period change in foreign currency translation adjustments 17 (18) Ending balance of foreign currency translation adjustments 19 2 Beginning balance of benefit plan net gain (loss) (33) (50) Current period change in benefit plan net gain (loss) 17 17 Ending balance of benefit plan net gain (loss) (16) (33) Ending balance of accumulated other comprehensive income (loss) $ (287) $ (848) (Some amounts may not reconcile due to rounding) |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Contributions To Defined Benefit Pension Plans | Although not required to make contributions under IRS regulations, the following table summarizes the Company’s contributions to the defined benefit pension plans for the periods indicated: Years Ended December 31, (Dollars in millions) 2023 2022 2021 Company contributions $ 1 $ 6 $ 4 |
Schedule of Pension Expense | The following table summarizes the Company’s pension expense for the periods indicated: Years Ended December 31, (Dollars in millions) 2023 2022 2021 Pension expense $ 5 $ (2) $ 3 |
Schedule of Status of Plan | The following table summarizes the status of these defined benefit plans for U.S. employees for the periods indicated: Years Ended December 31, (Dollars in millions) 2023 2022 Change in projected benefit obligation: Benefit obligation at beginning of year $ 291 $ 403 Service cost 5 9 Interest cost 14 10 Actuarial (gain)/loss 9 (115) Curtailment — — Benefits paid (25) (15) Projected benefit obligation at end of year 295 291 Change in plan assets: Fair value of plan assets at beginning of year 285 377 Actual return on plan assets 48 (83) Actual contributions during the year 1 6 Benefits paid (25) (15) Fair value of plan assets at end of year 308 285 Funded status at end of year $ 13 $ (6) (Some amounts may not reconcile due to rounding.) The following table summarizes the status of this plan for the periods indicated: At December 31, (Dollars in millions) 2023 2022 Change in projected benefit obligation: Benefit obligation at beginning of year $ 21 $ 31 Service cost 1 1 Interest cost 1 1 Amendments — — Actuarial (gain)/loss (1) (10) Benefits paid — — Benefit obligation at end of year 22 21 Change in plan assets: Fair value of plan assets at beginning of year — — Employer contributions — — Benefits paid — — Fair value of plan assets at end of year — — Funded status at end of year $ (22) $ (21) |
Schedule of Amounts Recognized In The Consolidated Balance Sheets | Amounts recognized in the consolidated balance sheets for the periods indicated: At December 31, (Dollars in millions) 2023 2022 Other assets (due beyond one year) $ 19 $ 1 Other liabilities (due within one year) (3) (1) Other liabilities (due beyond one year) (3) (6) Net amount recognized in the consolidated balance sheets $ 13 $ (6) Amounts recognized in the consolidated balance sheets for the periods indicated: At December 31, (Dollars in millions) 2023 2022 Other liabilities (due within one year) $ (1) $ (1) Other liabilities (due beyond one year) (21) (21) Net amount recognized in the consolidated balance sheets $ (22) $ (21) (Some amounts may not reconcile due to rounding.) |
Schedule of Amounts Not Yet Reflected In Net Periodic Benefit Cost And Included In Accumulated Other Comprehensive Income (Loss) | Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income (loss) for the periods indicated: At December 31, (Dollars in millions) 2023 2022 Accumulated income (loss) $ (33) $ (56) Accumulated other comprehensive income (loss) $ (33) $ (56) (Some amounts may not reconcile due to rounding.) Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income (loss) for the periods indicated: At December 31, (Dollars in millions) 2023 2022 Accumulated income (loss) $ 11 $ 13 Accumulated prior service credit (cost) 1 1 Accumulated other comprehensive income (loss) $ 12 $ 14 |
Schedule of Other Changes In Other Comprehensive Income (Loss) | Other changes in other comprehensive income (loss) for the periods indicated are as follows: Years Ended December 31, (Dollars in millions) 2023 2022 Other comprehensive income (loss) at December 31, prior year $ (56) $ (68) Net gain (loss) arising during period 19 7 Recognition of amortizations in net periodic benefit cost: Actuarial loss 4 4 Curtailment loss recognized — — Other comprehensive income (loss) at December 31, current year $ (33) $ (56) (Some amounts may not reconcile due to rounding.) Other changes in other comprehensive income (loss) for the periods indicated are as follows: Years Ended December 31, (Dollars in millions) 2023 2022 Other comprehensive income (loss) at December 31, prior year $ 14 $ 4 Net gain (loss) arising during period 1 10 Prior Service credit (cost) arising during period — — Recognition of amortizations in net periodic benefit cost: Actuarial loss (gain) (2) — Prior service cost — — Other comprehensive income (loss) at December 31, current year $ 12 $ 14 |
Schedule of Net Periodic Benefit Cost | Net periodic benefit cost for U.S. employees included the following components for the periods indicated: Years Ended December 31, (Dollars in millions) 2023 2022 2021 Service cost $ 5 $ 9 $ 11 Interest cost 14 10 8 Expected return on assets (19) (25) (24) Amortization of actuarial loss from earlier periods 4 4 8 Settlement — 1 — Net periodic benefit cost $ 5 $ (2) $ 3 Other changes recognized in other comprehensive income (loss): Other comprehensive income (loss) attributable to change from prior year (23) (12) Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (18) $ (14) (Some amounts may not reconcile due to rounding.) Net periodic benefit cost included the following components for the periods indicated: Years Ended December 31, (Dollars in millions) 2023 2022 2021 Service cost $ 1 $ 1 $ 1 Interest cost 1 1 1 Prior service credit recognition — — (1) Net gain recognition (2) — — Net periodic cost $ (1) $ 1 $ 1 Other changes recognized in other comprehensive income (loss): Other comprehensive gain (loss) attributable to change from prior year 2 (10) Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 1 $ (9) (Some amounts may not reconcile due to rounding.) |
Schedule of Accumulated Benefit Obligation | The following table summarizes the accumulated benefit obligation for the periods indicated: At December 31, (Dollars in millions) 2023 2022 Qualified Plan $ 263 $ 258 Non-qualified Plan 6 6 Total $ 269 $ 264 (Some amounts may not reconcile due to rounding.) |
Schedule of Projected Benefit Obligations In Excess Of Plan Assets | The following table displays the plans with projected benefit obligations in excess of plan assets for the periods indicated: At December 31, (Dollars in millions) 2023 2022 Qualified Plan Projected benefit obligation $ 289 $ 284 Fair value of plan assets 308 285 Non-qualified Plan Projected benefit obligation $ 6 $ 6 Fair value of plan assets — — |
Schedule of Accumulated Benefit Obligations In Excess Of Plan Assets | The following table displays the plans with accumulated benefit obligations in excess of plan assets for the periods indicated: At December 31, (Dollars in millions) 2023 2022 Qualified Plan Accumulated benefit obligation $ — $ — Fair value of plan assets — — Non-qualified Plan Accumulated benefit obligation 6 6 Fair value of plan assets $ — $ — |
Schedule of Expected Benefit Payments | The following table displays the expected benefit payments in the periods indicated: (Dollars in millions) 2024 $ 15 2025 14 2026 15 2027 16 2028 17 Next 5 years 99 The following table displays the expected benefit payments in the years indicated: (Dollars in millions) 2024 $ 1 2025 1 2026 1 2027 1 2028 1 Next 5 years 7 |
Schedule of Fair Value Measurement Levels For Qualified Plan Assets | The following tables present the fair value measurement levels for the qualified plan assets at fair value for the periods indicated: Fair Value Measurement Using: (Dollars in millions) December 31, Quoted Prices Significant Significant Assets: Short-term investments, which approximates fair value (a) $ 2 $ 2 $ — $ — Mutual funds, fair value Fixed income (b) 73 73 — — Equities (c) 232 232 — — Total $ 308 $ 308 $ — $ — (Some amounts may not reconcile due to rounding.) (a) This category includes high quality, short-term money market instruments, which are issued and payable in U.S. dollars. (b) This category includes fixed income funds, which invest in investment grade securities of corporations, governments and government agencies with approximately 90% in U.S. securities and 10% in international securities. (c) This category includes funds, which invest in small, mid and multi-cap equity securities including common stocks, securities convertible into common stock and securities with common stock characteristics, such as rights and warrants, with approximately 100% in U.S. equities. Fair Value Measurement Using: (Dollars in millions) December 31, Quoted Prices Significant Significant Assets: Short-term investments, which approximates fair value (a) $ 4 $ 4 $ — $ — Mutual funds, fair value Fixed income (b) 68 68 — — Equities (c) 211 211 — — Total $ 283 $ 283 $ — $ — (Some amounts may not reconcile due to rounding.) (a) This category includes high quality, short-term money market instruments, which are issued and payable in U.S. dollars. (b) This category includes fixed income funds, which invest in investment grade securities of corporations, governments and government agencies with approximately 70% in U.S. securities and 30% in international securities. (c) This category includes funds, which invest in small, mid and multi-cap equity securities including common stocks, securities convertible into common stock and securities with common stock characteristics, such as rights and warrants, with approximately 50% in U.S. equities and 50% in international equities. |
RELATED-PARTY TRANSACTIONS (Tab
RELATED-PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule Of Related-Party Long-Term Notes | The fair value of these long-term notes is considered Level 2 in the fair value hierarchy. December 31, 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: Years Ended December 31, (Dollars in millions) Interest Received Receivable Dates 2023 2022 2021 1.69% Long-term Note annually December 17 $ 2 $ 5 $ 5 1.00% Long-term Note annually August 5 1 2 1 3.11% Long-term Note annually June 14 5 4 — 4.34% Long-term Note annually December 12 — — — $ 7 $ 11 $ 6 (Some amounts may not reconcile due to rounding.) |
Schedule of Dividends Received on Preferred Shares | The following table presents the dividends received on the preferred shares of Preferred Holdings and on the Parent shares that are reported as net investment income in the consolidated statements of operations and comprehensive income (loss) for the periods indicated: Years Ended December 31, (Dollars in millions) 2023 2022 2021 Dividends received on preferred stock of affiliate $ 31 $ 31 $ 31 |
Schedule of Expenses Incurred By Holdings From Services Provided By Affiliated Company | The following table presents the expenses incurred by Holdings from services provided by Everest Global for the periods indicated. Years Ended December 31, (Dollars in millions) 2023 2022 2021 Expenses incurred $ 204 $ 204 $ 133 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components Of The Provision | The significant components of the provision are as follows for the periods indicated: Years Ended December 31, (Dollars in millions) 2023 2022 2021 Current tax expense (benefit): U.S. $ 284 $ 95 $ 102 Foreign — — — Total current tax expense (benefit) 284 95 102 Total deferred U.S. tax expense (benefit) (74) (207) 90 Total income tax expense (benefit) $ 210 $ (112) $ 192 |
Schedule of Reconciliation Of Total Income Tax Provision | A reconciliation of the total income tax provision using the statutory U.S. Federal Income tax rate to the Company’s total income tax provision is as follows for the periods indicated: Years Ended December 31, (Dollars in millions) 2023 2022 2021 Expected income tax provision at the U.S. statutory tax rate $ 248 $ (117) $ 208 Increase (reduction) in taxes resulting from: Tax exempt income (3) (4) (4) Dividend received deduction (2) (3) (1) Proration 1 1 1 Creditable foreign premium tax (14) (11) (13) Reserve adjustment — (19) — U.S. BEAT tax — 22 — Share based compensation (3) (3) (2) Prior year true up (21) 16 — Insurance company-owned life insurance (13) (1) — Other 17 7 3 Total income tax provision $ 210 $ (112) $ 192 (Some amounts may not reconcile due to rounding.) |
Schedule of Net Deferred Income Tax Assets/(Liabilities) | The principal items making up the net deferred income tax assets/(liabilities) are as follows for the periods indicated: At December 31, (Dollars in millions) 2023 2022 Deferred tax assets: Loss reserves $ 154 $ 154 Unearned premium reserve 143 114 Net unrealized investment losses 66 200 Depreciation 44 — Lease Liability 27 29 Unrealized foreign currency losses 15 24 Investment impairments 12 12 Equity compensation 8 7 Amortization 7 — Net unrecognized losses on benefit plans 4 9 Foreign tax credits — 3 Other assets 17 12 Total deferred tax assets 497 564 Deferred tax liabilities: Deferred acquisition costs 139 105 Net fair value income 136 141 Partnership Investments 49 56 Right of use asset 23 25 Bond market discount 9 5 Depreciation — 16 Other liabilities 5 6 Total deferred tax liabilities 361 354 Net deferred tax assets/(liabilities) $ 136 $ 210 (Some amounts may not reconcile due to rounding.) |
DIVIDEND RESTRICTIONS AND STA_2
DIVIDEND RESTRICTIONS AND STATUTORY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Dividend Restrictions And Statutory Financial Information [Abstract] | |
Schedule of Regulatory Targeted Capital And Actual Statutory Capital | The regulatory targeted capital and the actual statutory capital for Everest Re is as follows: Everest Re (1) At December 31, (Dollars in millions) 2023 2022 Regulatory targeted capital $ 4,242 $ 3,353 Actual capital $ 6,963 $ 5,553 (1) Regulatory targeted capital represents 200% of the RBC authorized control level calculation for the applicable year. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 2 |
INVESTMENTS - Schedule of Amort
INVESTMENTS - Schedule of Amortized Cost, Allowance for Credit Losses, Gross Unrealized Appreciation/(Depreciation) and Fair Value of Fixed Maturity Securities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Fixed maturity securities – available for sale | |||
Amortized Cost | $ 16,304 | $ 13,699 | |
Allowances for Credit Loss | (48) | (46) | $ (27) |
Unrealized Appreciation | 212 | 30 | |
Unrealized Depreciation | (536) | (1,013) | |
Fair Value | 15,932 | 12,671 | |
Fixed maturity securities - held to maturity | |||
Amortized Cost | 859 | 820 | |
Allowances for Credit Loss | (8) | (9) | 0 |
Unrealized Appreciation | 12 | 3 | |
Unrealized Depreciation | (13) | (22) | |
Fair Value | 850 | 793 | |
U.S. Treasury securities and obligations of U.S. government agencies and corporations | |||
Fixed maturity securities – available for sale | |||
Amortized Cost | 265 | 575 | |
Allowances for Credit Loss | 0 | 0 | |
Unrealized Appreciation | 0 | 0 | |
Unrealized Depreciation | (17) | (40) | |
Fair Value | 247 | 535 | |
Obligations of U.S. states and political subdivisions | |||
Fixed maturity securities – available for sale | |||
Amortized Cost | 138 | 444 | |
Allowances for Credit Loss | 0 | 0 | |
Unrealized Appreciation | 1 | 2 | |
Unrealized Depreciation | (11) | (32) | |
Fair Value | 128 | 413 | |
Corporate securities | |||
Fixed maturity securities – available for sale | |||
Amortized Cost | 4,400 | 3,913 | |
Allowances for Credit Loss | (47) | (45) | (19) |
Unrealized Appreciation | 96 | 14 | |
Unrealized Depreciation | (160) | (322) | |
Fair Value | 4,289 | 3,561 | |
Fixed maturity securities - held to maturity | |||
Amortized Cost | 150 | 152 | |
Allowances for Credit Loss | (2) | (2) | 0 |
Unrealized Appreciation | 1 | 0 | |
Unrealized Depreciation | (3) | (6) | |
Fair Value | 146 | 144 | |
Asset-backed securities | |||
Fixed maturity securities – available for sale | |||
Amortized Cost | 5,307 | 4,111 | |
Allowances for Credit Loss | 0 | 0 | (8) |
Unrealized Appreciation | 23 | 5 | |
Unrealized Depreciation | (48) | (165) | |
Fair Value | 5,282 | 3,951 | |
Fixed maturity securities - held to maturity | |||
Amortized Cost | 604 | 634 | |
Allowances for Credit Loss | (5) | (6) | 0 |
Unrealized Appreciation | 4 | 2 | |
Unrealized Depreciation | (10) | (15) | |
Fair Value | 593 | 614 | |
Commercial | |||
Fixed maturity securities – available for sale | |||
Amortized Cost | 575 | 569 | |
Allowances for Credit Loss | 0 | 0 | |
Unrealized Appreciation | 0 | 0 | |
Unrealized Depreciation | (53) | (59) | |
Fair Value | 522 | 509 | |
Fixed maturity securities - held to maturity | |||
Amortized Cost | 21 | 7 | |
Allowances for Credit Loss | 0 | 0 | |
Unrealized Appreciation | 0 | 0 | |
Unrealized Depreciation | 0 | 0 | |
Fair Value | 21 | 7 | |
Agency residential | |||
Fixed maturity securities – available for sale | |||
Amortized Cost | 2,532 | 1,792 | |
Allowances for Credit Loss | 0 | 0 | |
Unrealized Appreciation | 27 | 3 | |
Unrealized Depreciation | (124) | (167) | |
Fair Value | 2,435 | 1,628 | |
Non-agency residential | |||
Fixed maturity securities – available for sale | |||
Amortized Cost | 429 | 3 | |
Allowances for Credit Loss | 0 | 0 | |
Unrealized Appreciation | 14 | 0 | |
Unrealized Depreciation | (1) | 0 | |
Fair Value | 441 | 3 | |
Foreign government securities | |||
Fixed maturity securities – available for sale | |||
Amortized Cost | 859 | 696 | |
Allowances for Credit Loss | 0 | 0 | |
Unrealized Appreciation | 15 | 2 | |
Unrealized Depreciation | (39) | (61) | |
Fair Value | 835 | 637 | |
Foreign corporate securities | |||
Fixed maturity securities – available for sale | |||
Amortized Cost | 1,800 | 1,597 | |
Allowances for Credit Loss | 0 | (1) | 0 |
Unrealized Appreciation | 35 | 4 | |
Unrealized Depreciation | (82) | (167) | |
Fair Value | 1,753 | 1,433 | |
Fixed maturity securities - held to maturity | |||
Amortized Cost | 84 | 28 | |
Allowances for Credit Loss | (1) | (1) | $ 0 |
Unrealized Appreciation | 7 | 2 | |
Unrealized Depreciation | 0 | 0 | |
Fair Value | $ 90 | $ 28 |
INVESTMENTS - Schedule of Amo_2
INVESTMENTS - Schedule of Amortized Cost and Fair Value of Fixed Maturity Securities, by Contractual Maturity (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due in one year or less | $ 546 | $ 581 |
Due after one year through five years | 2,402 | 3,684 |
Due after five years through ten years | 2,842 | 2,003 |
Due after ten years | 1,672 | 958 |
Amortized Cost | 16,304 | 13,699 |
Fair Value | ||
Due in one year or less | 537 | 563 |
Due after one year through five years | 2,310 | 3,429 |
Due after five years through ten years | 2,784 | 1,760 |
Due after ten years | 1,621 | 827 |
Fair Value | 15,932 | 12,671 |
Amortized Cost | ||
Due in one year or less | 5 | 5 |
Due after one year through five years | 59 | 63 |
Due after five years through ten years | 43 | 43 |
Due after ten years | 127 | 68 |
Amortized Cost | 859 | 820 |
Fair Value | ||
Due in one year or less | 5 | 5 |
Due after one year through five years | 58 | 61 |
Due after five years through ten years | 42 | 41 |
Due after ten years | 131 | 65 |
Fair Value | 850 | 793 |
Asset-backed securities | ||
Amortized Cost | ||
Amortized Cost | 5,307 | 4,111 |
Fair Value | ||
Fair Value | 5,282 | 3,951 |
Amortized Cost | ||
Amortized Cost | 604 | 634 |
Fair Value | ||
Fair Value | 593 | 614 |
Commercial | ||
Amortized Cost | ||
Amortized Cost | 575 | 569 |
Fair Value | ||
Fair Value | 522 | 509 |
Amortized Cost | ||
Amortized Cost | 21 | 7 |
Fair Value | ||
Fair Value | 21 | 7 |
Agency residential | ||
Amortized Cost | ||
Amortized Cost | 2,532 | 1,792 |
Fair Value | ||
Fair Value | 2,435 | 1,628 |
Non-agency residential | ||
Amortized Cost | ||
Amortized Cost | 429 | 3 |
Fair Value | ||
Fair Value | $ 441 | $ 3 |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) security | Dec. 31, 2021 USD ($) | |
Debt Securities, Available-for-Sale [Line Items] | |||
Fair value of securities, net of allowance | $ 0 | $ 722 | $ 0 |
Unrealized loss from transfer | 287 | 848 | |
Fair value of investments in unrealized loss position | 7,556 | 11,222 | |
Gross unrealized losses on investments in unrealized loss position | 536 | 1,013 | |
Fixed maturity securities, duration of unrealized loss, less than 12 months, gross unrealized depreciation | 55 | 591 | |
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation | 481 | 421 | |
Additional contractual commitments | 1,000 | ||
Cash surrender value of life insurance | $ 1,300 | $ 939 | |
Number of securities held as primary beneficiary | security | 0 | 0 | |
Securities, carrying value | $ 1,400 | ||
Variable Interest Entity, Not Primary Beneficiary | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Maximum exposure to loss | 3,300 | $ 2,800 | |
Commitments to fund investments | $ 972 | ||
Investments, Debt Securities Benchmark | Issuer Concentration Risk | Issuer One | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Concentration credit risk | 1.40% | 4.30% | |
Investments, Debt Securities Benchmark | Issuer Concentration Risk | Issuer Two | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Concentration credit risk | 0.50% | 0.60% | |
Debt Securities, Held To Maturity | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Unrealized loss from transfer | $ 42 | ||
Investment Grade | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Fixed maturity securities, duration of unrealized loss, less than 12 months, gross unrealized depreciation | 39 | $ 520 | |
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation | 455 | 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 | $ 481 | $ 421 |
INVESTMENTS - Schedule of Chang
INVESTMENTS - Schedule of Changes in Net Unrealized Appreciation (Depreciation) for Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Change in unrealized appreciation (depreciation), pre-tax | $ 667 | $ (1,187) | |
Deferred tax benefit (expense) | (140) | 249 | |
Total URA(D) on securities arising during the period | $ 527 | $ (938) | $ (191) |
INVESTMENTS - Schedule of Aggre
INVESTMENTS - Schedule of Aggregate Fair Value and Gross Unrealized Depreciation of Fixed Maturity Securities - Available for Sale, by Security Type (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value | ||
Less than 12 months | $ 1,369 | $ 8,524 |
Greater than 12 months | 6,187 | 2,698 |
Total | 7,556 | 11,222 |
Gross Unrealized Depreciation | ||
Less than 12 months | (55) | (591) |
Greater than 12 months | (481) | (421) |
Total | (536) | (1,013) |
No Recorded Allowance for Credit Losses | ||
Fair Value | ||
Less than 12 months | 1,367 | 8,522 |
Greater than 12 months | 6,187 | 2,698 |
Total | 7,554 | 11,220 |
Gross Unrealized Depreciation | ||
Less than 12 months | (54) | (591) |
Greater than 12 months | (481) | (421) |
Total | (536) | (1,012) |
U.S. Treasury securities and obligations of U.S. government agencies and corporations | ||
Fair Value | ||
Less than 12 months | 7 | 290 |
Greater than 12 months | 238 | 245 |
Total | 245 | 535 |
Gross Unrealized Depreciation | ||
Less than 12 months | 0 | (14) |
Greater than 12 months | (17) | (26) |
Total | (17) | (40) |
State, municipalities and political subdivisions | ||
Fair Value | ||
Less than 12 months | 3 | 235 |
Greater than 12 months | 74 | 27 |
Total | 77 | 261 |
Gross Unrealized Depreciation | ||
Less than 12 months | 0 | (23) |
Greater than 12 months | (11) | (9) |
Total | (11) | (32) |
Corporate securities | ||
Fair Value | ||
Less than 12 months | 673 | 2,138 |
Greater than 12 months | 1,150 | 841 |
Total | 1,822 | 2,979 |
Gross Unrealized Depreciation | ||
Less than 12 months | (47) | (175) |
Greater than 12 months | (112) | (146) |
Total | (160) | (321) |
Asset-backed securities | ||
Fair Value | ||
Less than 12 months | 179 | 3,120 |
Greater than 12 months | 1,958 | 436 |
Total | 2,138 | 3,556 |
Gross Unrealized Depreciation | ||
Less than 12 months | (2) | (138) |
Greater than 12 months | (46) | (27) |
Total | (48) | (165) |
Commercial | ||
Fair Value | ||
Less than 12 months | 19 | 464 |
Greater than 12 months | 491 | 36 |
Total | 511 | 500 |
Gross Unrealized Depreciation | ||
Less than 12 months | 0 | (50) |
Greater than 12 months | (53) | (9) |
Total | (53) | (59) |
Agency residential | ||
Fair Value | ||
Less than 12 months | 203 | 852 |
Greater than 12 months | 1,030 | 605 |
Total | 1,233 | 1,456 |
Gross Unrealized Depreciation | ||
Less than 12 months | (2) | (54) |
Greater than 12 months | (123) | (113) |
Total | (124) | (167) |
Non-agency residential | ||
Fair Value | ||
Less than 12 months | 125 | 2 |
Greater than 12 months | 3 | 1 |
Total | 128 | 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 | 38 | 455 |
Greater than 12 months | 423 | 144 |
Total | 461 | 599 |
Gross Unrealized Depreciation | ||
Less than 12 months | (1) | (36) |
Greater than 12 months | (38) | (25) |
Total | (39) | (61) |
Foreign corporate securities | ||
Fair Value | ||
Less than 12 months | 120 | 967 |
Greater than 12 months | 821 | 365 |
Total | 940 | 1,332 |
Gross Unrealized Depreciation | ||
Less than 12 months | (2) | (100) |
Greater than 12 months | (80) | (67) |
Total | (82) | (167) |
Securities where an allowance for credit loss was recorded | ||
Fair Value | ||
Less than 12 months | 2 | 2 |
Greater than 12 months | 0 | 0 |
Total | 2 | 2 |
Gross Unrealized Depreciation | ||
Less than 12 months | (1) | (1) |
Greater than 12 months | 0 | 0 |
Total | $ (1) | $ (1) |
INVESTMENTS - Schedule of Agg_2
INVESTMENTS - Schedule of Aggregate Fair Value and Gross Unrealized Depreciation of Fixed Maturity Securities - Available for Sale, by Contractual Maturity (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value | ||
Less than 12 months | $ 1,369 | $ 8,524 |
Greater than 12 months | 6,187 | 2,698 |
Total | 7,556 | 11,222 |
Gross Unrealized Depreciation | ||
Less than 12 months | (55) | (591) |
Greater than 12 months | (481) | (421) |
Total | (536) | (1,013) |
No Recorded Allowance for Credit Losses | ||
Fair Value | ||
Less than 12 months | 1,367 | 8,522 |
Greater than 12 months | 6,187 | 2,698 |
Total | 7,554 | 11,220 |
Gross Unrealized Depreciation | ||
Less than 12 months | (54) | (591) |
Greater than 12 months | (481) | (421) |
Total | (536) | (1,012) |
Due in one year or less | ||
Fair Value | ||
Less than 12 months | 84 | 463 |
Greater than 12 months | 263 | 29 |
Total | 348 | 491 |
Gross Unrealized Depreciation | ||
Less than 12 months | (1) | (8) |
Greater than 12 months | (10) | (4) |
Total | (11) | (11) |
Due in one year through five years | ||
Fair Value | ||
Less than 12 months | 227 | 2,020 |
Greater than 12 months | 1,317 | 936 |
Total | 1,544 | 2,956 |
Gross Unrealized Depreciation | ||
Less than 12 months | (5) | (143) |
Greater than 12 months | (96) | (107) |
Total | (101) | (250) |
Due in five years through ten years | ||
Fair Value | ||
Less than 12 months | 150 | 1,162 |
Greater than 12 months | 951 | 395 |
Total | 1,101 | 1,557 |
Gross Unrealized Depreciation | ||
Less than 12 months | (5) | (148) |
Greater than 12 months | (128) | (98) |
Total | (133) | (246) |
Due after ten years | ||
Fair Value | ||
Less than 12 months | 379 | 439 |
Greater than 12 months | 174 | 262 |
Total | 553 | 701 |
Gross Unrealized Depreciation | ||
Less than 12 months | (39) | (50) |
Greater than 12 months | (25) | (64) |
Total | (64) | (114) |
Asset-backed securities | ||
Fair Value | ||
Less than 12 months | 179 | 3,120 |
Greater than 12 months | 1,958 | 436 |
Total | 2,138 | 3,556 |
Gross Unrealized Depreciation | ||
Less than 12 months | (2) | (138) |
Greater than 12 months | (46) | (27) |
Total | (48) | (165) |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 months | 347 | 1,318 |
Greater than 12 months | 1,523 | 641 |
Total | 1,871 | 1,959 |
Gross Unrealized Depreciation | ||
Less than 12 months | (3) | (105) |
Greater than 12 months | (176) | (122) |
Total | (179) | (226) |
Securities where an allowance for credit loss was recorded | ||
Fair Value | ||
Less than 12 months | 2 | 2 |
Greater than 12 months | 0 | 0 |
Total | 2 | 2 |
Gross Unrealized Depreciation | ||
Less than 12 months | (1) | (1) |
Greater than 12 months | 0 | 0 |
Total | $ (1) | $ (1) |
INVESTMENTS - Schedule of Compo
INVESTMENTS - Schedule of Components of Net Investment Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-Sale [Line Items] | |||
Gross investment income before adjustments | $ 1,027 | $ 675 | $ 774 |
Funds held interest income (expense) | 3 | 6 | 8 |
Interest income from Parent | 7 | 11 | 6 |
Gross investment income | 1,038 | 691 | 788 |
Investment expenses | 46 | 52 | 43 |
Net investment income | 993 | 638 | 745 |
Fixed maturities | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Gross investment income before adjustments | 822 | 510 | 344 |
Equity securities | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Gross investment income before adjustments | 3 | 16 | 15 |
Short-term investments and cash | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Gross investment income before adjustments | 74 | 16 | 1 |
Limited partnerships | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Gross investment income before adjustments | 37 | 72 | 321 |
Dividends from preferred shares of affiliate | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Gross investment income before adjustments | 31 | 31 | 31 |
Other | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Gross investment income before adjustments | $ 59 | $ 30 | $ 63 |
INVESTMENTS - Schedule of Com_2
INVESTMENTS - Schedule of Components of Net Gains (Losses) on Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-Sale [Line Items] | |||
Total net gains (losses) on investments | $ (180) | $ (982) | $ 501 |
Fixed maturity securities: | Market Value | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Allowances for credit losses | (1) | (27) | (26) |
Net realized gains (losses) from dispositions | (192) | (79) | 8 |
Gains (losses) from fair value adjustments | 0 | 0 | 0 |
Equity securities: | Fair Value | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Net realized gains (losses) from dispositions | 8 | 117 | 24 |
Gains (losses) from fair value adjustments | (4) | (447) | 254 |
Other invested assets | 0 | 13 | 6 |
Other invested assets, fair value: | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Gains (losses) from fair value adjustments | 9 | (558) | 234 |
Short-term investment gains (losses) | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Net realized gains (losses) from dispositions | $ 0 | $ 0 | $ 0 |
INVESTMENTS - Schedule of Fixed
INVESTMENTS - Schedule of Fixed Maturities, Allowance for Credit Loss, Available-for-Sale Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ (46) | $ (27) |
Credit losses on securities where credit losses were not previously recorded | (23) | (12) |
Increases in allowance on previously impaired securities | (1) | (21) |
Decreases in allowance on previously impaired securities | 0 | 0 |
Reduction in allowance due to disposals | 22 | 14 |
Balance, end of period | (48) | (46) |
Corporate securities | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | (45) | (19) |
Credit losses on securities where credit losses were not previously recorded | (23) | (11) |
Increases in allowance on previously impaired securities | (1) | (20) |
Decreases in allowance on previously impaired securities | 0 | 0 |
Reduction in allowance due to disposals | 21 | 6 |
Balance, end of period | (47) | (45) |
Asset-backed securities | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | 0 | (8) |
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 | 8 |
Balance, end of period | 0 | 0 |
Foreign Corporate Securities | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | (1) | 0 |
Credit losses on securities where credit losses were not previously recorded | 0 | (1) |
Increases in allowance on previously impaired securities | 0 | 0 |
Decreases in allowance on previously impaired securities | 0 | 0 |
Reduction in allowance due to disposals | 1 | 1 |
Balance, end of period | $ 0 | $ (1) |
INVESTMENTS - Schedule of Fix_2
INVESTMENTS - Schedule of Fixed Maturities, Allowance for Credit Loss, Held-to-Maturity Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Securities, Held-to-Maturity, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ (9) | $ 0 |
Credit losses on securities where credit losses were not previously recorded | 0 | (9) |
Increases in allowance on previously impaired securities | 0 | 0 |
Decreases in allowance on previously impaired securities | 0 | 0 |
Reduction in allowance due to disposals | 1 | 0 |
Balance, end of period | (8) | (9) |
Corporate securities | ||
Debt Securities, Held-to-Maturity, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | (2) | 0 |
Credit losses on securities where credit losses were not previously recorded | 0 | (2) |
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] | ||
Balance, beginning of period | (6) | 0 |
Credit losses on securities where credit losses were not previously recorded | 0 | (6) |
Increases in allowance on previously impaired securities | 0 | 0 |
Decreases in allowance on previously impaired securities | 0 | 0 |
Reduction in allowance due to disposals | 1 | 0 |
Balance, end of period | (5) | (6) |
Foreign Corporate Securities | ||
Debt Securities, Held-to-Maturity, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | (1) | 0 |
Credit losses on securities where credit losses were not previously recorded | 0 | (1) |
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 - Schedule of Gross
INVESTMENTS - Schedule of Gross Gains (Losses) from Dispositions of Fixed Maturity and Equity Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales of fixed maturity securities - available for sale | $ 2,546 | $ 2,645 | $ 961 |
Gross gains from dispositions | 12 | 9 | 33 |
Gross losses from dispositions | (204) | (88) | (24) |
Proceeds from sales of equity securities | 126 | 2,203 | 862 |
Gross gains from dispositions | 8 | 165 | 39 |
Gross losses from dispositions | $ 0 | $ (48) | $ (15) |
FAIR VALUE - Narrative (Details
FAIR VALUE - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | $ 15,932,000,000 | $ 12,671,000,000 | |
Annual dividend rate | 1.75% | ||
Transfers in/(out) of Level 3 and reclassification of securities in/(out) of investment categories | 0 | 779,000,000 | |
Other invested assets, at fair value | $ 1,481,000,000 | 1,472,000,000 | |
Redeemable Convertible Preferred Stock | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Preferred stock term | 25 years | ||
Annual dividend rate | 1.75% | ||
Senior Notes | 4.868% Senior Notes Due 2044 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Observable input constant maturity | 10 years | ||
Other invested assets, at fair value | 4.868% | ||
Fair Value | Investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Other invested assets, at fair value | $ 274,000,000 | 292,000,000 | |
Fixed maturities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | $ 2,000,000,000 | $ 1,700,000,000 |
FAIR VALUE - Schedule of Fair V
FAIR VALUE - Schedule of Fair Value Measurement Levels for all Assets, Recorded at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 15,932 | $ 12,671 |
Equity securities, fair value | 91 | 194 |
Other invested assets, at fair value | 1,481 | 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, fair value | 70 | 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 | 13,939 | 10,946 |
Equity securities, fair value | 21 | 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 | 1,993 | 1,725 |
Equity securities, fair value | 0 | 0 |
Other invested assets, at fair value | 1,481 | 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 | 247 | 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 | 247 | 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 | 128 | 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 | 128 | 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 | 4,289 | 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 | 3,617 | 2,846 |
Corporate securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 672 | 715 |
Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 5,282 | 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 | 3,977 | 2,957 |
Asset-backed securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 1,305 | 994 |
Commercial | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 522 | 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 | 522 | 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 | 2,435 | 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 | 2,435 | 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 | 441 | 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 | 441 | 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 | 835 | 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 | 835 | 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 securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 1,753 | 1,433 |
Foreign 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 |
Foreign corporate securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 1,737 | 1,417 |
Foreign corporate securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 16 | $ 16 |
FAIR VALUE - Schedule of Activi
FAIR VALUE - Schedule of Activity Under Level 3, Fair Value Measurements Using Significant Unobservable Inputs for Fixed Maturities - Available for Sale (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Transfers in (out) of Level 3 and reclassification of securities in/(out) investment categories | $ 0 | $ (779,000,000) |
Fair Value Recurring Basis Unobservable Input Reconciliation Asset Gain (Loss) Statement Of Income Extensible List Not Disclosed Flag | Total gains or (losses) (realized/unrealized) Included in earnings (or changes in net assets) | |
Fair Value Recurring Basis Unobservable Input Reconciliation Asset Gain Loss Statement Of Other Comprehensive Income Extensible List Not Disclosed Flag | Included in other comprehensive income (loss) | |
Market Value | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance fixed maturities | 1,725,000,000 | $ 1,997,000,000 |
Total gains or (losses) (realized/unrealized) Included in earnings (or changes in net assets) | 4,000,000 | (24,000,000) |
Included in other comprehensive income (loss) | 4,000,000 | (36,000,000) |
Purchases, issuances and settlements | 260,000,000 | 567,000,000 |
Transfers in (out) of Level 3 and reclassification of securities in/(out) investment categories | 0 | (779,000,000) |
Ending balance | 1,993,000,000 | 1,725,000,000 |
The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date | 9,000,000 | (15,000,000) |
Market Value | Corporate securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance fixed maturities | 715,000,000 | 730,000,000 |
Total gains or (losses) (realized/unrealized) Included in earnings (or changes in net assets) | 4,000,000 | (24,000,000) |
Included in other comprehensive income (loss) | (2,000,000) | 3,000,000 |
Purchases, issuances and settlements | (45,000,000) | 40,000,000 |
Transfers in (out) of Level 3 and reclassification of securities in/(out) investment categories | 0 | (35,000,000) |
Ending balance | 672,000,000 | 715,000,000 |
The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date | 9,000,000 | (23,000,000) |
Market Value | Asset-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance fixed maturities | 994,000,000 | 1,251,000,000 |
Total gains or (losses) (realized/unrealized) Included in earnings (or changes in net assets) | 0 | 0 |
Included in other comprehensive income (loss) | 6,000,000 | (35,000,000) |
Purchases, issuances and settlements | 305,000,000 | 513,000,000 |
Transfers in (out) of Level 3 and reclassification of securities in/(out) investment categories | 0 | (735,000,000) |
Ending balance | 1,305,000,000 | 994,000,000 |
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 | 8,000,000 |
Market Value | Foreign corporate securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance fixed maturities | 16,000,000 | 16,000,000 |
Total gains or (losses) (realized/unrealized) Included in earnings (or changes in net assets) | 0 | 0 |
Included in other comprehensive income (loss) | 0 | (4,000,000) |
Purchases, issuances and settlements | 0 | 8,000,000 |
Transfers in (out) of Level 3 and reclassification of securities in/(out) investment categories | 0 | (4,000,000) |
Ending balance | 16,000,000 | 16,000,000 |
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 |
Market Value | CMBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance fixed maturities | 0 | 0 |
Total gains or (losses) (realized/unrealized) Included in earnings (or changes in net assets) | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0 |
Purchases, issuances and settlements | 0 | 6,000,000 |
Transfers in (out) of Level 3 and reclassification of securities in/(out) investment categories | 0 | (6,000,000) |
Ending balance | 0 | 0 |
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 |
RESERVES FOR LOSSES AND LAE - S
RESERVES FOR LOSSES AND LAE - Schedule of Activity in the Reserve for Losses and Loss Adjustment Expenses (“LAE”) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Gross reserves beginning of period | $ 14,977 | $ 13,121 | $ 11,578 | |
Less reinsurance recoverables on unpaid losses | (3,684) | (3,651) | (3,951) | |
Net reserves beginning of period | 12,614 | 11,294 | 9,470 | $ 7,627 |
Current year | 5,599 | 5,815 | 5,382 | |
Prior years | (21) | 7 | 5 | |
Total incurred losses and LAE | 5,578 | 5,823 | 5,387 | |
Current year | 1,169 | 1,097 | 2,374 | |
Prior years | 3,128 | 2,867 | 1,127 | |
Total paid losses and LAE | 4,298 | 3,964 | 3,501 | |
Foreign exchange/translation adjustment | 40 | (35) | (42) | |
Net reserves end of period | 12,614 | 11,294 | 9,470 | |
Plus reinsurance recoverables on unpaid losses | 3,182 | 3,684 | 3,651 | |
Gross reserves end of period | $ 15,796 | $ 14,977 | $ 13,121 |
RESERVES FOR LOSSES AND LAE -_2
RESERVES FOR LOSSES AND LAE - Schedule of Reconciliation of the Net Incurred and Paid Claims Development (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | $ 12,396 | |||
Total reinsurance recoverable on unpaid claims | 3,182 | |||
Unallocated claims adjustment expenses | 184 | |||
Other | 33 | |||
Total expenses | 218 | |||
Reserve for losses and loss adjustment expenses | 15,796 | $ 14,977 | $ 13,121 | $ 11,578 |
Reinsurance | Casualty Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 5,433 | |||
Total reinsurance recoverable on unpaid claims | 492 | |||
Reinsurance | Property Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 3,161 | |||
Total reinsurance recoverable on unpaid claims | 816 | |||
Insurance | Casualty Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 3,310 | |||
Total reinsurance recoverable on unpaid claims | 1,695 | |||
Insurance | Property Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 493 | |||
Total reinsurance recoverable on unpaid claims | $ 179 |
RESERVES FOR LOSSES AND LAE - N
RESERVES FOR LOSSES AND LAE - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) group_ | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Reserves For Losses And LAE [Line Items] | |||
Current year incurred losses | $ 5,599 | $ 5,815 | $ 5,382 |
Increase in incurred prior years' reserves | $ (21) | 7 | $ 5 |
Number of exposure groups | group_ | 200 | ||
Contracts of insurance and reinsurance received claims during the past three years, in years | 20 years | ||
Reinsurance recoverable for paid and unpaid losses | $ 3,400 | 3,800 | |
Bermuda Re | |||
Reserves For Losses And LAE [Line Items] | |||
Reinsurance recoverable for paid and unpaid losses | $ 1,500 | ||
Reinsurance Receivable For Paid And Unpaid Losses | Reinsurer Concentration Risk | Bermuda Re | |||
Reserves For Losses And LAE [Line Items] | |||
Concentration credit risk | 45.80% | ||
Reinsurance Receivable For Paid And Unpaid Losses | Reinsurer Concentration Risk | Other Retrocessionaire | |||
Reserves For Losses And LAE [Line Items] | |||
Concentration credit risk | 5% | ||
Catastrophe Losses | |||
Reserves For Losses And LAE [Line Items] | |||
Current year incurred losses | $ (642) | 44 | |
Increase in incurred prior years' reserves | (22) | ||
Higher Premiums Earned | |||
Reserves For Losses And LAE [Line Items] | |||
Current year incurred losses | 426 | 389 | |
Increase in incurred prior years' reserves | (351) | ||
Russia/Ukraine Conflict | |||
Reserves For Losses And LAE [Line Items] | |||
Current year incurred losses | 25 | ||
Attritional Losses On Insurance Lines | |||
Reserves For Losses And LAE [Line Items] | |||
Increase in incurred prior years' reserves | 352 | ||
Asbestos Issue | |||
Reserves For Losses And LAE [Line Items] | |||
Increase in incurred prior years' reserves | $ 113 | ||
Mt. Logan Re Segregated Accounts | |||
Reserves For Losses And LAE [Line Items] | |||
Reinsurance recoverable for paid and unpaid losses | $ 285 | ||
Mt. Logan Re Segregated Accounts | Reinsurance Receivable For Paid And Unpaid Losses | Reinsurer Concentration Risk | |||
Reserves For Losses And LAE [Line Items] | |||
Concentration credit risk | 8.50% | ||
Reinsurance | Bermuda Re | |||
Reserves For Losses And LAE [Line Items] | |||
Increase in incurred prior years' reserves | $ 37 |
RESERVES FOR LOSSES AND LAE -_3
RESERVES FOR LOSSES AND LAE - Schedule of Incurred Loss And ALAE And Paid Loss And ALAE, Net Of Reinsurance (Details) $ in Millions | Dec. 31, 2023 USD ($) claim | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2018 USD ($) | Dec. 31, 2017 USD ($) | Dec. 31, 2016 USD ($) | Dec. 31, 2015 USD ($) | Dec. 31, 2014 USD ($) |
Short-duration Insurance Contracts [Line Items] | ||||||||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | $ 12,396 | |||||||||
Reinsurance | Casualty Insurance | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 5,433 | |||||||||
Reinsurance | Property Insurance | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 14,996 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 11,815 | |||||||||
All outstanding liabilities prior to 2014, net of reinsurance | (20) | |||||||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 3,161 | |||||||||
Reinsurance | Property, Liability and Casualty Insurance Product Line | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 8,299 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 3,101 | |||||||||
All outstanding liabilities prior to 2014, net of reinsurance | 235 | |||||||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 5,433 | |||||||||
Insurance | Casualty Insurance | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 3,310 | |||||||||
Insurance | Property Insurance | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 3,872 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 3,379 | |||||||||
All outstanding liabilities prior to 2014, net of reinsurance | 0 | |||||||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 493 | |||||||||
Insurance | Property, Liability and Casualty Insurance Product Line | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 7,076 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 3,793 | |||||||||
All outstanding liabilities prior to 2014, net of reinsurance | 27 | |||||||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 3,310 | |||||||||
2014 | Reinsurance | Property Insurance | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 340 | $ 340 | $ 340 | $ 340 | $ 340 | $ 340 | $ 339 | $ 369 | $ 527 | $ 715 |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 3 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 339 | 332 | 325 | 323 | 319 | 317 | 301 | 273 | 222 | 145 |
2014 | Reinsurance | Property, Liability and Casualty Insurance Product Line | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 229 | 229 | 229 | 229 | 229 | 229 | 229 | 258 | 327 | 341 |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 0 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 216 | 211 | 188 | 184 | 175 | 145 | 107 | 77 | 36 | 15 |
2014 | Insurance | Property Insurance | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 82 | 82 | 82 | 82 | 82 | 82 | 82 | 84 | 89 | 76 |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 0 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 82 | 82 | 82 | 82 | 82 | 82 | 81 | 81 | 77 | 45 |
2014 | Insurance | Property, Liability and Casualty Insurance Product Line | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 256 | 256 | 256 | 256 | 255 | 255 | 255 | 241 | 239 | 238 |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 1 | |||||||||
Cumulative Number of Reported Claims | claim | 24,779 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | $ 255 | 254 | 253 | 250 | 229 | 229 | 144 | 114 | 72 | $ 20 |
2015 | Reinsurance | Property Insurance | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 311 | 311 | 311 | 311 | 311 | 311 | 311 | 341 | 640 | |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 1 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 314 | 300 | 291 | 287 | 282 | 276 | 261 | 213 | 148 | |
2015 | Reinsurance | Property, Liability and Casualty Insurance Product Line | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 238 | 238 | 238 | 238 | 238 | 238 | 238 | 250 | 294 | |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 6 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 216 | 209 | 194 | 188 | 168 | 147 | 86 | 39 | 16 | |
2015 | Insurance | Property Insurance | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 95 | 103 | 107 | 107 | 95 | 92 | 93 | 93 | 96 | |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 0 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 95 | 94 | 94 | 94 | 91 | 91 | 91 | 82 | 51 | |
2015 | Insurance | Property, Liability and Casualty Insurance Product Line | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 278 | 269 | 266 | 266 | 277 | 277 | 277 | 259 | 259 | |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 4 | |||||||||
Cumulative Number of Reported Claims | claim | 26,300 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | $ 270 | 266 | 263 | 259 | 244 | 199 | 117 | 68 | $ 20 | |
2016 | Reinsurance | Property Insurance | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 628 | 627 | 627 | 627 | 628 | 632 | 631 | 612 | ||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 2 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 603 | 592 | 582 | 580 | 575 | 569 | 475 | 223 | ||
2016 | Reinsurance | Property, Liability and Casualty Insurance Product Line | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 239 | 239 | 239 | 239 | 239 | 239 | 239 | 243 | ||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 18 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 220 | 214 | 187 | 161 | 143 | 89 | 54 | 18 | ||
2016 | Insurance | Property Insurance | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 181 | 181 | 174 | 175 | 177 | 180 | 186 | 150 | ||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 0 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 181 | 180 | 180 | 178 | 175 | 180 | 162 | 78 | ||
2016 | Insurance | Property, Liability and Casualty Insurance Product Line | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 281 | 281 | 287 | 288 | 281 | 279 | 276 | 351 | ||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 0 | |||||||||
Cumulative Number of Reported Claims | claim | 30,606 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | $ 321 | 318 | 313 | 308 | 299 | 276 | 101 | $ 25 | ||
2017 | Reinsurance | Property Insurance | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 2,203 | 2,200 | 2,162 | 2,109 | 2,015 | 1,847 | 1,262 | |||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 2 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 2,219 | 2,181 | 2,105 | 2,011 | 1,887 | 1,529 | 773 | |||
2017 | Reinsurance | Property, Liability and Casualty Insurance Product Line | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 204 | 204 | 204 | 204 | 204 | 204 | 198 | |||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 50 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 187 | 180 | 150 | 123 | 110 | 87 | 27 | |||
2017 | Insurance | Property Insurance | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 329 | 332 | 322 | 309 | 303 | 300 | 233 | |||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 0 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 329 | 329 | 321 | 305 | 287 | 298 | 164 | |||
2017 | Insurance | Property, Liability and Casualty Insurance Product Line | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 235 | 232 | 236 | 237 | 238 | 237 | 304 | |||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 0 | |||||||||
Cumulative Number of Reported Claims | claim | 34,567 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | $ 243 | 239 | 233 | 217 | 157 | 151 | $ 23 | |||
2018 | Reinsurance | Property Insurance | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 1,982 | 2,011 | 2,041 | 2,093 | 2,103 | 2,214 | ||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | (1) | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 1,909 | 1,866 | 1,808 | 1,652 | 1,358 | 470 | ||||
2018 | Reinsurance | Property, Liability and Casualty Insurance Product Line | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 1,029 | 919 | 867 | 845 | 799 | 814 | ||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 115 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 510 | 473 | 415 | 318 | 200 | 132 | ||||
2018 | Insurance | Property Insurance | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 402 | 395 | 390 | 392 | 380 | 382 | ||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 5 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 396 | 391 | 388 | 376 | 349 | 238 | ||||
2018 | Insurance | Property, Liability and Casualty Insurance Product Line | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 793 | 698 | 689 | 666 | 644 | 645 | ||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 135 | |||||||||
Cumulative Number of Reported Claims | claim | 35,301 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | $ 476 | 435 | 383 | 271 | 189 | $ 63 | ||||
2019 | Reinsurance | Property Insurance | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 1,479 | 1,486 | 1,591 | 1,664 | 1,658 | |||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | (7) | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 1,472 | 1,376 | 1,258 | 1,016 | 656 | |||||
2019 | Reinsurance | Property, Liability and Casualty Insurance Product Line | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 1,109 | 1,073 | 1,058 | 1,057 | 1,009 | |||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 285 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 531 | 487 | 381 | 265 | 165 | |||||
2019 | Insurance | Property Insurance | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 378 | 365 | 359 | 367 | 350 | |||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 7 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 367 | 364 | 357 | 346 | 224 | |||||
2019 | Insurance | Property, Liability and Casualty Insurance Product Line | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 996 | 814 | 794 | 756 | 768 | |||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 194 | |||||||||
Cumulative Number of Reported Claims | claim | 39,356 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | $ 598 | 489 | 350 | 217 | $ 11 | |||||
2020 | Reinsurance | Property Insurance | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 1,805 | 1,827 | 1,887 | 1,843 | ||||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 23 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 1,590 | 1,408 | 1,100 | 528 | ||||||
2020 | Reinsurance | Property, Liability and Casualty Insurance Product Line | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 1,017 | 1,026 | 1,057 | 1,085 | ||||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 373 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 447 | 334 | 237 | 146 | ||||||
2020 | Insurance | Property Insurance | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 478 | 513 | 523 | 524 | ||||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 24 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 453 | 395 | 374 | 271 | ||||||
2020 | Insurance | Property, Liability and Casualty Insurance Product Line | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 841 | 793 | 792 | 817 | ||||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 287 | |||||||||
Cumulative Number of Reported Claims | claim | 38,099 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | $ 448 | 340 | 209 | $ 82 | ||||||
2021 | Reinsurance | Property Insurance | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 2,068 | 2,126 | 2,140 | |||||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 87 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 1,634 | 1,274 | 625 | |||||||
2021 | Reinsurance | Property, Liability and Casualty Insurance Product Line | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 1,309 | 1,351 | 1,358 | |||||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 693 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 377 | 230 | 156 | |||||||
2021 | Insurance | Property Insurance | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 578 | 550 | 557 | |||||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 31 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 537 | 515 | 361 | |||||||
2021 | Insurance | Property, Liability and Casualty Insurance Product Line | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 1,106 | 1,112 | 1,112 | |||||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 457 | |||||||||
Cumulative Number of Reported Claims | claim | 44,387 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | $ 521 | 339 | $ 201 | |||||||
2022 | Reinsurance | Property Insurance | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 2,223 | 2,535 | ||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 549 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 1,209 | 548 | ||||||||
2022 | Reinsurance | Property, Liability and Casualty Insurance Product Line | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 1,290 | 1,331 | ||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 912 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 222 | 105 | ||||||||
2022 | Insurance | Property Insurance | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 711 | 708 | ||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 115 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 548 | 390 | ||||||||
2022 | Insurance | Property, Liability and Casualty Insurance Product Line | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 1,054 | 1,039 | ||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 450 | |||||||||
Cumulative Number of Reported Claims | claim | 45,829 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | $ 470 | $ 222 | ||||||||
2023 | Reinsurance | Property Insurance | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 1,958 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 980 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 525 | |||||||||
2023 | Reinsurance | Property, Liability and Casualty Insurance Product Line | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 1,634 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 1,283 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 175 | |||||||||
2023 | Insurance | Property Insurance | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 638 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | 164 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | 391 | |||||||||
2023 | Insurance | Property, Liability and Casualty Insurance Product Line | ||||||||||
Short-duration Insurance Contracts [Line Items] | ||||||||||
Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, | 1,236 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 620 | |||||||||
Cumulative Number of Reported Claims | claim | 36,309 | |||||||||
Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, | $ 193 |
RESERVES FOR LOSSES AND LAE -_4
RESERVES FOR LOSSES AND LAE - Schedule of Average Annual Percentage Payout Incurred Claims By Age, Net Of Reinsurance (Details) | Dec. 31, 2023 |
Insurance | Casualty Insurance | |
Short-Duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year One | 12.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Two | 19.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Three | 16.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Four | 15% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Five | 11.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Six | 3.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Seven | 3.20% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Eight | 1.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Nine | 0.90% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Ten | 0.20% |
Insurance | Property Insurance | |
Short-Duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year One | 57.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Two | 29.80% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Three | 4% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Four | 4.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Five | 1.80% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Six | 1.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Seven | 0.20% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Eight | 0.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Nine | 0.20% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Ten | 0.10% |
Reinsurance | Casualty Insurance | |
Short-Duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year One | 11.50% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Two | 8.90% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Three | 11.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Four | 11.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Five | 6.80% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Six | 7.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Seven | 5.50% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Eight | 3.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Nine | 6.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Ten | 2% |
Reinsurance | Property Insurance | |
Short-Duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year One | 30.90% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Two | 32.80% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Three | 16.20% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Four | 7.20% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Five | 3.90% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Six | 2.40% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Seven | 1.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Eight | 1.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Nine | 3.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Ten | 1.90% |
RESERVES FOR LOSSES AND LAE -_5
RESERVES FOR LOSSES AND LAE - Schedule of Incurred Losses With Respect to A&E Reserve on Both Gross and Net of Reinsurance Basis (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Gross basis: | |||
Beginning of period reserves | $ 278 | $ 175 | $ 219 |
Incurred losses | 0 | 144 | 11 |
Paid losses | (31) | (42) | (55) |
End of period reserves | 246 | 278 | 175 |
Net basis: | |||
Beginning of period reserves | 210 | 128 | 167 |
Incurred losses | 0 | 113 | (3) |
Paid losses | (21) | (32) | (36) |
End of period reserves | $ 189 | $ 210 | $ 128 |
REINSURANCE - Schedule of Premi
REINSURANCE - Schedule of Premiums Written And Earned And Incurred Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Written premiums: | |||
Direct | $ 3,785 | $ 3,701 | $ 3,300 |
Assumed | 7,332 | 5,975 | 6,031 |
Ceded | (1,905) | (1,645) | (1,612) |
Net written premiums | 9,212 | 8,032 | 7,719 |
Premiums earned: | |||
Direct | 3,709 | 3,544 | 2,982 |
Assumed | 6,705 | 5,945 | 5,741 |
Ceded | (1,878) | (1,613) | (1,544) |
Net premiums earned | 8,536 | 7,876 | 7,179 |
Incurred losses and LAE: | |||
Direct | 2,594 | 2,423 | 2,043 |
Assumed | 3,449 | 4,107 | 3,872 |
Ceded | (465) | (708) | (528) |
Net incurred losses and LAE | $ 5,578 | $ 5,823 | $ 5,387 |
REINSURANCE - Schedule of Affil
REINSURANCE - Schedule of Affiliated Quota Share Reinsurance Agreements for all New and Renewal Business for the Indicated Coverage Period (Details) $ in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2023 USD ($) | Dec. 31, 2023 CAD ($) | |
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 | |
01/01/2020 | ||
Related Party Transaction [Line Items] | ||
Percent Ceded | 100% | 100% |
Single Occurrence Limit | $ 0 | |
Aggregate Limit | $ 0 |
REINSURANCE - Narrative (Detail
REINSURANCE - Narrative (Details) € in Millions, £ in Millions, $ in Millions | 10 Months Ended | 12 Months Ended | ||||||
Jan. 01, 2018 USD ($) | Dec. 31, 2017 USD ($) | Jan. 31, 2024 EUR (€) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jan. 31, 2022 EUR (€) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 GBP (£) | |
Related Party Transaction [Line Items] | ||||||||
Reinsurance agreements, aggregate loss | $ 5,578 | $ 5,823 | $ 5,387 | |||||
Everest Re Group, Ltd. | ||||||||
Related Party Transaction [Line Items] | ||||||||
Reinsurance agreements, aggregate loss | $ 37 | |||||||
Bermuda Re | ||||||||
Related Party Transaction [Line Items] | ||||||||
Subject loss reserves | $ 2,300 | |||||||
Bermuda Re | Cash And Fixed Maturity Securities | ||||||||
Related Party Transaction [Line Items] | ||||||||
Amount transferred | 1,000 | |||||||
Bermuda Re | Loss Reserves | ||||||||
Related Party Transaction [Line Items] | ||||||||
Amount transferred | 970 | |||||||
Catastrophe Reinsurance | Bermuda Re | Everest Re Group, Ltd. | ||||||||
Related Party Transaction [Line Items] | ||||||||
Aggregate Limit | £ | £ 100 | |||||||
Payments for coverage | £ | 5 | |||||||
Reinsurance agreement, threshold | £ | £ 24 | |||||||
Catastrophe Reinsurance | Ireland Re | Everest Re Group, Ltd. | ||||||||
Related Party Transaction [Line Items] | ||||||||
Aggregate Limit | € | € 210 | |||||||
Payments for coverage | € | 14 | |||||||
Reinsurance agreement, threshold | € | € 18 | |||||||
Catastrophe Reinsurance | Subsequent Events | Ireland Re | Everest Re Group, Ltd. | ||||||||
Related Party Transaction [Line Items] | ||||||||
Aggregate Limit | € | € 61 | |||||||
Payments for coverage | € | 2 | |||||||
Reinsurance agreement, threshold | € | € 139 | |||||||
Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
Reinsurance recoverables | 1,547 | 1,935 | ||||||
Affiliated Entity | Bermuda Re | ||||||||
Related Party Transaction [Line Items] | ||||||||
Adverse development coverage | $ 500 | |||||||
Reinsurance recoverables | $ 807 | $ 804 |
REINSURANCE - Schedule Of Loss
REINSURANCE - Schedule Of Loss Portfolio Transfer Reinsurance Agreements, Net Insurance Exposures And Reserves Were Transferred To An Affiliate (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Oct. 01, 2008 | Oct. 01, 2001 |
Reinsurance Disclosures [Abstract] | |||
Percentage of business | 100% | ||
Amount of transfer | $ 970 | $ 747 |
REINSURANCE - Schedule of Pre_2
REINSURANCE - Schedule of Premiums and Losses Ceded by Company to Affiliate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Effects of Reinsurance [Line Items] | |||
Ceded written premiums | $ 1,905 | $ 1,645 | $ 1,612 |
Ceded earned premiums | 1,878 | 1,613 | 1,544 |
Assumed written premiums | 7,332 | 5,975 | 6,031 |
Affiliated Entity | Bermuda Re | |||
Effects of Reinsurance [Line Items] | |||
Ceded written premiums | 432 | 372 | 303 |
Ceded earned premiums | 431 | 371 | 300 |
Ceded losses and LAE | (15) | (16) | (59) |
Assumed written premiums | 4 | 3 | 5 |
Assumed earned premiums | 4 | 5 | 4 |
Affiliated Entity | Ireland Re | |||
Effects of Reinsurance [Line Items] | |||
Assumed written premiums | 13 | 10 | 16 |
Assumed earned premiums | 12 | 10 | 15 |
Assumed losses and LAE | 2 | 23 | 64 |
Affiliated Entity | Ireland Insurance | |||
Effects of Reinsurance [Line Items] | |||
Assumed written premiums | 14 | 9 | 9 |
Assumed earned premiums | 17 | 8 | 6 |
Assumed losses and LAE | 7 | 5 | 3 |
Mt. Logan Re Segregated Accounts | |||
Effects of Reinsurance [Line Items] | |||
Ceded written premiums | 210 | 170 | 286 |
Ceded earned premiums | 205 | 174 | 280 |
Ceded losses and LAE | $ 31 | $ 150 | $ 194 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) - segment | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Concentration Risk [Line Items] | |||
Number of operating segments | 2 | ||
Premiums Written, Gross | Customer Concentration Risk | Largest Intermediary | |||
Concentration Risk [Line Items] | |||
Concentration credit risk | 17.20% | 17.60% | 19.30% |
SEGMENT REPORTING - Schedule Of
SEGMENT REPORTING - Schedule Of Underwriting Results For Operating Segments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Gross written premiums | $ 11,117 | $ 9,677 | $ 9,331 |
Net written premiums | 9,212 | 8,032 | 7,719 |
Premiums earned | 8,536 | 7,876 | 7,179 |
Incurred losses and loss adjustment expenses | 5,578 | 5,823 | 5,387 |
Commission, brokerage, taxes and fees | 1,851 | 1,632 | 1,513 |
Other underwriting expenses | 574 | 501 | 454 |
Underwriting gain (loss) | 533 | (81) | (175) |
Net investment income | 993 | 638 | 745 |
Net gains (losses) on investments | (180) | (982) | 501 |
Corporate expenses | (18) | (26) | (33) |
Interest, fee and bond issue cost amortization expense | (134) | (101) | (70) |
Other income (expense) | (11) | (6) | 23 |
INCOME (LOSS) BEFORE TAXES | 1,181 | (557) | 991 |
Reinsurance | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 7,181 | 5,879 | 5,979 |
Net written premiums | 6,205 | 5,204 | 5,217 |
Premiums earned | 5,637 | 5,147 | 4,899 |
Incurred losses and loss adjustment expenses | 3,329 | 3,926 | 3,750 |
Commission, brokerage, taxes and fees | 1,545 | 1,308 | 1,229 |
Other underwriting expenses | 167 | 138 | 142 |
Underwriting gain (loss) | 596 | (224) | (220) |
Insurance | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 3,936 | 3,798 | 3,352 |
Net written premiums | 3,007 | 2,828 | 2,503 |
Premiums earned | 2,900 | 2,729 | 2,279 |
Incurred losses and loss adjustment expenses | 2,249 | 1,897 | 1,637 |
Commission, brokerage, taxes and fees | 306 | 325 | 284 |
Other underwriting expenses | 407 | 364 | 312 |
Underwriting gain (loss) | $ (64) | $ 144 | $ 46 |
SENIOR NOTES - Schedule of Outs
SENIOR NOTES - Schedule of Outstanding Senior Notes (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Consolidated Balance Sheet Amount | $ 2,349,000,000 | $ 2,347,000,000 |
Senior Notes | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Principal Amounts | 2,400,000,000 | |
Consolidated Balance Sheet Amount | 2,349,000,000 | 2,347,000,000 |
Fair Value | $ 1,799,000,000 | 1,647,000,000 |
Senior Notes | 4.868% Senior Notes Due 2044 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Debt instrument, stated interest rate | 4.868% | |
Principal Amounts | $ 400,000,000 | |
Consolidated Balance Sheet Amount | 398,000,000 | 397,000,000 |
Fair Value | $ 369,000,000 | 343,000,000 |
Senior Notes | 3.50% Senior Notes Due 2050 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Debt instrument, stated interest rate | 3.50% | |
Principal Amounts | $ 1,000,000,000 | |
Consolidated Balance Sheet Amount | 981,000,000 | 981,000,000 |
Fair Value | $ 742,000,000 | 677,000,000 |
Senior Notes | 3.125% Senior Notes Due 2052 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Debt instrument, stated interest rate | 3.125% | |
Principal Amounts | $ 1,000,000,000 | |
Consolidated Balance Sheet Amount | 970,000,000 | 969,000,000 |
Fair Value | $ 688,000,000 | $ 627,000,000 |
SENIOR NOTES - Schedule of Inte
SENIOR NOTES - Schedule of Interest Expense Incurred in Connection with Senior Notes (Details) - Senior Notes - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Interest expense incurred | $ 86 | $ 86 | $ 62 |
4.868% Senior Notes Due 2044 | |||
Debt Instrument [Line Items] | |||
Interest expense incurred | $ 19 | 19 | 19 |
Other invested assets, at fair value | 4.868% | ||
3.50% Senior Notes Due 2050 | |||
Debt Instrument [Line Items] | |||
Interest expense incurred | $ 35 | 35 | 35 |
Other invested assets, at fair value | 3.50% | ||
3.125% Senior Notes Due 2052 | |||
Debt Instrument [Line Items] | |||
Interest expense incurred | $ 32 | $ 32 | $ 8 |
Other invested assets, at fair value | 3.125% |
LONG-TERM SUBORDINATED NOTES -
LONG-TERM SUBORDINATED NOTES - Schedule of Outstanding Fixed to Floating Rate Long-Term Subordinated Notes (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Consolidated Balance Sheet Amount | $ 218,000,000 | $ 218,000,000 |
6.60% Long-Term Notes Due 2067 | 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 _2
LONG-TERM SUBORDINATED NOTES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
May 17, 2017 | Dec. 31, 2023 | Dec. 31, 2022 | Feb. 14, 2024 | May 14, 2017 | |
Long Term Subordinated Debt | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt reduction | $ 6 | ||||
Gain on repurchase and retirement of debt | $ 1 | ||||
6.60% Long-Term Notes Due 2067 | Long Term Subordinated Debt | |||||
Debt Instrument [Line Items] | |||||
Other invested assets, at fair value | 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% | ||||
6.60% Long-Term Notes Due 2067 | Long Term Subordinated Debt | Subsequent Events | |||||
Debt Instrument [Line Items] | |||||
Reset quarterly interest rate | 8.03% | ||||
4.868% Senior Notes Due 2044 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Other invested assets, at fair value | 4.868% | ||||
3.50% Senior Notes Due 2050 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Other invested assets, at fair value | 3.50% | ||||
3.125% Senior Notes Due 2052 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Other invested assets, at fair value | 3.125% |
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 | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Long-Term Debt, Unclassified [Abstract] | |||
Interest expense incurred | $ 17 | $ 9 | $ 6 |
FEDERAL HOME LOAN BANK MEMBER_2
FEDERAL HOME LOAN BANK MEMBERSHIP (Details) - Federal Home Loan Bank of New York - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Maximum percentage of admitted assets allowed for borrowing base | 10% | |
Admitted assets for FHLB | $ 26,300 | |
Maximum amount available under FHLB | 2,600 | |
Outstanding | 819 | |
Interest expense | $ 30 | $ 4 |
Amount of borrowed funds required to be used to acquire additional membership stock, percentage | 4.50% | |
Asset Pledged as Collateral | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Collateral pledged | $ 1,100 |
COLLATERALIZED REINSURANCE, T_3
COLLATERALIZED REINSURANCE, TRUST AGREEMENTS AND OTHER RESTRICTED ASSETS - Schedule of Restricted Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Text Block [Abstract] | ||
Collateral in trust for non-affiliated agreements | $ 825 | $ 705 |
Collateral for FHLB borrowings | 1,077 | 572 |
Securities on deposit with or regulated by government authorities | 1,447 | 1,360 |
Funds held by reinsureds | 306 | 303 |
Total restricted assets | 3,654 | 2,941 |
Restricted cash | $ 116 | $ 21 |
COLLATERALIZED REINSURANCE, T_4
COLLATERALIZED REINSURANCE, TRUST AGREEMENTS AND OTHER RESTRICTED ASSETS - Schedule of Collateralized Reinsurance Agreements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Effects of Reinsurance [Line Items] | |||
Limit | $ 1,905 | $ 1,645 | $ 1,612 |
Kilimanjaro Re Limited | |||
Effects of Reinsurance [Line Items] | |||
Limit | 1,375 | ||
Kilimanjaro Re Limited | Reinsurance Contract [Axis]: Series 2019-1 Class A-2 | |||
Effects of Reinsurance [Line Items] | |||
Limit | 150 | ||
Kilimanjaro Re Limited | Reinsurance Contract [Axis]: Series 2019-1 Class B-2 | |||
Effects of Reinsurance [Line Items] | |||
Limit | 275 | ||
Kilimanjaro Re Limited | Reinsurance Contract [Axis]: Series 2021-1 Class A-1 | |||
Effects of Reinsurance [Line Items] | |||
Limit | 150 | ||
Kilimanjaro Re Limited | Reinsurance Contract [Axis]: Series 2021-1 Class A-2 | |||
Effects of Reinsurance [Line Items] | |||
Limit | 150 | ||
Kilimanjaro Re Limited | Reinsurance Contract [Axis]: Series 2021-1 Class B-1 | |||
Effects of Reinsurance [Line Items] | |||
Limit | 85 | ||
Kilimanjaro Re Limited | Reinsurance Contract [Axis]: Series 2021-1 Class B-2 | |||
Effects of Reinsurance [Line Items] | |||
Limit | 90 | ||
Kilimanjaro Re Limited | Reinsurance Contract [Axis]: Series 2021-1 Class C-1 | |||
Effects of Reinsurance [Line Items] | |||
Limit | 85 | ||
Kilimanjaro Re Limited | Reinsurance Contract [Axis]: Series 2021-1 Class C-2 | |||
Effects of Reinsurance [Line Items] | |||
Limit | 90 | ||
Kilimanjaro Re Limited | Reinsurance Contract [Axis]: Series 2022-1 Class A | |||
Effects of Reinsurance [Line Items] | |||
Limit | $ 300 |
COLLATERALIZED REINSURANCE, T_5
COLLATERALIZED REINSURANCE, TRUST AGREEMENTS AND OTHER RESTRICTED ASSETS - Narrative (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Collateralized Reinsurance And Trust Agreements [Abstract] | |
Catastrophe bond protection, threshold | $ 350 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Schedule of Estimated Cost To Replace All Such Annuities For Which The Company Was Contingently Liable (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
The Prudential | ||
Loss Contingencies [Line Items] | ||
Estimated cost to replace annuities | $ 136 | $ 137 |
Other unaffiliated life insurance company | ||
Loss Contingencies [Line Items] | ||
Estimated cost to replace annuities | $ 34 | $ 34 |
LEASES - Schedule of Supplement
LEASES - Schedule of Supplemental Information Relating to Operating Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Lease expense incurred: Operating lease cost | $ 26 | $ 25 |
Operating lease right of use assets (1) | $ 111 | $ 121 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Operating lease liabilities (1) | $ 130 | $ 139 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Operating cash flows from operating leases | $ (19) | $ (18) |
Weighted average remaining operating lease term | 10 years 3 months 18 days | 11 years 1 month 6 days |
Weighted average discount rate on operating leases | 4.03% | 4% |
LEASES - Schedule of Maturities
LEASES - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 20 | |
2025 | 16 | |
2026 | 15 | |
2027 | 14 | |
2028 | 12 | |
Thereafter | 78 | |
Undiscounted lease payments | 155 | |
Less: present value adjustment | 26 | |
Total operating lease liability | $ 130 | $ 139 |
COMPREHENSIVE INCOME (LOSS) - S
COMPREHENSIVE INCOME (LOSS) - Schedule of Components of Comprehensive Income (Loss) in the Consolidated Statements of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Before Tax | |||
Total other comprehensive income (loss) | $ 710 | $ (1,189) | $ (223) |
Tax Effect | |||
Total other comprehensive income (loss) | (149) | 249 | 47 |
Net of Tax | |||
Total other comprehensive income (loss), net of tax | 561 | (939) | (177) |
URA(D) on securities - temporary | |||
Before Tax | |||
OCI before reclassification, before tax | 473 | (1,280) | (254) |
Reclassification of net realized losses (gains) included in net income (loss) and Reclassification of amortization of net gain (loss) included in net income (loss) | 193 | 93 | 12 |
Tax Effect | |||
OCI before reclassification, tax effect | (99) | 269 | 53 |
Reclassification of net realized losses (gains) included in net income (loss), tax effect | (41) | (20) | (3) |
Net of Tax | |||
OCI before reclassifications, net of tax | 374 | (1,011) | (200) |
Reclassification of net realized losses (gains) included in net income (loss), net of tax | 153 | 73 | 9 |
Total other comprehensive income (loss), net of tax | 527 | (938) | |
Foreign currency translation adjustments | |||
Before Tax | |||
OCI before reclassification, before tax | 22 | (23) | (11) |
Tax Effect | |||
OCI before reclassification, tax effect | (5) | 5 | 2 |
Net of Tax | |||
OCI before reclassifications, net of tax | 17 | (18) | (9) |
Total other comprehensive income (loss), net of tax | 17 | (18) | |
Benefit plan actuarial net gain (loss) | |||
Before Tax | |||
Reclassification of net realized losses (gains) included in net income (loss) and Reclassification of amortization of net gain (loss) included in net income (loss) | (2) | (3) | (8) |
Benefit plan actuarial net gain (loss) | 19 | 18 | 22 |
Tax Effect | |||
OCI before reclassification, tax effect | (4) | (4) | (5) |
Reclassification of net realized losses (gains) included in net income (loss), tax effect | 0 | 1 | 2 |
Net of Tax | |||
Reclassification of net realized losses (gains) included in net income (loss), net of tax | (2) | (2) | (6) |
Benefit plan actuarial net gain (loss) | 15 | 15 | $ 17 |
Total other comprehensive income (loss), net of tax | $ 17 | $ 17 |
COMPREHENSIVE INCOME (LOSS) -_2
COMPREHENSIVE INCOME (LOSS) - Schedule of Reclassification from Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other net realized capital gains (losses) | $ (180) | $ (982) | $ 501 |
Income tax expense (benefit) | 210 | (112) | 192 |
Other underwriting expenses | 574 | 501 | 454 |
Net income (loss) | 972 | (445) | $ 800 |
URA(D) on securities - temporary | Reclassification From Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other net realized capital gains (losses) | 193 | 93 | |
Income tax expense (benefit) | (41) | (20) | |
Net income (loss) | 153 | 73 | |
Benefit plan net gain (loss) | Reclassification From Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income tax expense (benefit) | 0 | (1) | |
Other underwriting expenses | 2 | 3 | |
Net income (loss) | $ 2 | $ 2 |
COMPREHENSIVE INCOME (LOSS) -_3
COMPREHENSIVE INCOME (LOSS) - Schedule of Components of Accumulated Other Comprehensive Income (Loss), Net of Tax, in the Consolidated Balance Sheets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 5,654 | $ 7,038 | |
Current period change | 561 | (939) | $ (177) |
Ending balance | 7,187 | 5,654 | 7,038 |
Accumulated Other Comprehensive Income (Loss), Net of Deferred Income Taxes | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (848) | 91 | 268 |
Current period change | 561 | (939) | (177) |
Ending balance | (287) | (848) | 91 |
URA(D) on securities - temporary | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (816) | 122 | |
Current period change | 527 | (938) | |
Ending balance | (289) | (816) | 122 |
Foreign currency translation adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 2 | 20 | |
Current period change | 17 | (18) | |
Ending balance | 19 | 2 | 20 |
Benefit plan actuarial net gain (loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (33) | (50) | |
Current period change | 17 | 17 | |
Ending balance | $ (16) | $ (33) | $ (50) |
EMPLOYEE BENEFIT PLANS - Schedu
EMPLOYEE BENEFIT PLANS - Schedule of Contributions To Defined Benefit Pension Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company contributions | $ 1 | $ 6 | $ 4 |
EMPLOYEE BENEFIT PLANS - Sche_2
EMPLOYEE BENEFIT PLANS - Schedule of Pension Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension expense | $ 5 | $ (2) | $ 3 |
EMPLOYEE BENEFIT PLANS (Summary
EMPLOYEE BENEFIT PLANS (Summary Of Status Of Plan) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Pension Plans | |||
Change in projected benefit obligation: | |||
Benefit obligation at beginning of year | $ 291,000,000 | $ 403,000,000 | |
Service cost | 5,000,000 | 9,000,000 | $ 11,000,000 |
Interest cost | 14,000,000 | 10,000,000 | 8,000,000 |
Actuarial (gain)/loss | 9,000,000 | (115,000,000) | |
Curtailment | 0 | 0 | |
Benefits paid | (25,000,000) | (15,000,000) | |
Projected benefit obligation at end of year | 295,000,000 | 291,000,000 | 403,000,000 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 285,000,000 | 377,000,000 | |
Actual return on plan assets | 48,000,000 | (83,000,000) | |
Actual contributions during the year | 1,000,000 | 6,000,000 | |
Benefits paid | (25,000,000) | (15,000,000) | |
Fair value of plan assets at end of year | 308,000,000 | 285,000,000 | 377,000,000 |
Funded status at end of year | 13,000,000 | (6,000,000) | |
Post-Retirement Plan | |||
Change in projected benefit obligation: | |||
Benefit obligation at beginning of year | 21,000,000 | 31,000,000 | |
Service cost | 1,000,000 | 1,000,000 | 1,000,000 |
Interest cost | 1,000,000 | 1,000,000 | 1,000,000 |
Amendments | 0 | 0 | |
Actuarial (gain)/loss | (1,000,000) | (10,000,000) | |
Benefits paid | 0 | 0 | |
Projected benefit obligation at end of year | 22,000,000 | 21,000,000 | 31,000,000 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual contributions during the year | 0 | 0 | |
Benefits paid | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded status at end of year | $ (22,000,000) | $ (21,000,000) |
EMPLOYEE BENEFIT PLANS (Narrati
EMPLOYEE BENEFIT PLANS (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2030 | |
Defined Benefit Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted average discount rate used to determine net periodic benefit cost | 5.25% | 2.86% | 2.55% | |
Rate of compensation increase to determine the net periodic benefit cost | 4% | 4% | 4% | |
Expected long-term rate of return on plan assets | 7% | 6.75% | 7% | |
Weighted average discount rates used to determine actuarial present value of the projected benefit obligation | 5% | 5.25% | 2.86% | |
Company contributions | $ 1,000,000 | $ 6,000,000 | $ 4,000,000 | |
Defined Benefit Pension Plans | Fair Value, Recurring | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Private equity limited partnership | 2,000,000 | |||
Defined Benefit Pension Plans | Qualified Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Company contributions | $ 0 | 0 | ||
Defined Contribution Plans | Us Employees | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plans, employer contribution plans, employer contribution percentage, maximum | 3% | |||
Defined contribution plans, employer contribution percentage, for new hires, minimum | 3% | |||
Defined contribution plans, employer contribution percentage, for new hires, maximum | 8% | |||
Vested contribution after three years, percentage | 100% | |||
Defined contribution plans vesting period, years | 3 years | |||
Incurred expenses (reversal) | $ 22,000,000 | 18,000,000 | 15,000,000 | |
Defined Contribution Plans | Non US Employees | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Incurred expenses (reversal) | $ 700,000 | $ 700,000 | $ 600,000 | |
Defined contribution plan employer contribution percentage for branch offices, minimum | 7.50% | |||
Defined contribution plan employer contribution percentage for branch offices, maximum | 9.30% | |||
Post-Retirement Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted average discount rate used to determine net periodic benefit cost | 5.25% | 2.86% | 2.55% | |
Weighted average discount rates used to determine actuarial present value of the projected benefit obligation | 5% | 5.25% | 2.86% | |
Incurred expenses (reversal) | $ (1,000,000) | $ 1,000,000 | $ 1,000,000 | |
Health inflation rate | 6.75% | |||
Post-Retirement Plan | Forecast | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Health inflation rate | 4.75% | |||
Equity securities | Defined Benefit Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets consist of shares in investment trusts, percentage | 75% | |||
Target asset allocation percentage | 70% | |||
Fixed maturities | Defined Benefit Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets consist of shares in investment trusts, percentage | 24% | |||
Cash | Defined Benefit Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets consist of shares in investment trusts, percentage | 1% | |||
Bonds | Defined Benefit Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation percentage | 30% |
EMPLOYEE BENEFIT PLANS (Amounts
EMPLOYEE BENEFIT PLANS (Amounts Recognized In The Consolidated Balance Sheets) (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets (due beyond one year) | $ 19,000,000 | $ 1,000,000 |
Other liabilities (due within one year) | (3,000,000) | (1,000,000) |
Other liabilities (due beyond one year) | (3,000,000) | (6,000,000) |
Net amount recognized in the consolidated balance sheets | 13,000,000 | (6,000,000) |
Post-Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other liabilities (due within one year) | (1,000,000) | (1,000,000) |
Other liabilities (due beyond one year) | (21,000,000) | (21,000,000) |
Net amount recognized in the consolidated balance sheets | $ (22,000,000) | $ (21,000,000) |
EMPLOYEE BENEFIT PLANS (Amoun_2
EMPLOYEE BENEFIT PLANS (Amounts Not Yet Reflected In Net Periodic Benefit Cost And Included In Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated income (loss) | $ (33) | $ (56) | |
Accumulated other comprehensive income (loss) | (33) | (56) | $ (68) |
Post-Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated income (loss) | 11 | 13 | |
Accumulated prior service credit (cost) | 1 | 1 | |
Accumulated other comprehensive income (loss) | $ 12 | $ 14 | $ 4 |
EMPLOYEE BENEFIT PLANS (Other C
EMPLOYEE BENEFIT PLANS (Other Changes In Other Comprehensive Income (Loss)) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Pension Plans | |||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, Before Tax [Roll Forward] | |||
Other comprehensive income (loss) at December 31, prior year | $ (56,000,000) | $ (68,000,000) | |
Net gain (loss) arising during period | 19,000,000 | 7,000,000 | |
Recognition of amortizations in net periodic benefit cost: | |||
Net gain recognition | 4,000,000 | 4,000,000 | |
Curtailment loss recognized | 0 | 0 | |
Other comprehensive income (loss) at December 31, current year | (33,000,000) | (56,000,000) | $ (68,000,000) |
Post-Retirement Plan | |||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, Before Tax [Roll Forward] | |||
Other comprehensive income (loss) at December 31, prior year | 14,000,000 | 4,000,000 | |
Net gain (loss) arising during period | 1,000,000 | 10,000,000 | |
Prior Service credit (cost) arising during period | 0 | 0 | |
Recognition of amortizations in net periodic benefit cost: | |||
Net gain recognition | (2,000,000) | 0 | 0 |
Prior service cost | 0 | 0 | (1,000,000) |
Other comprehensive income (loss) at December 31, current year | $ 12,000,000 | $ 14,000,000 | $ 4,000,000 |
EMPLOYEE BENEFIT PLANS (Summa_2
EMPLOYEE BENEFIT PLANS (Summary Of Net Periodic Benefit Cost) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 5,000,000 | $ 9,000,000 | $ 11,000,000 |
Interest cost | 14,000,000 | 10,000,000 | 8,000,000 |
Expected return on assets | (19,000,000) | (25,000,000) | (24,000,000) |
Amortization of actuarial loss from earlier periods | 4,000,000 | 4,000,000 | 8,000,000 |
Settlement | 0 | (1,000,000) | 0 |
Net gain recognition | 4,000,000 | 4,000,000 | |
Net periodic cost | 5,000,000 | (2,000,000) | 3,000,000 |
Other comprehensive gain (loss) attributable to change from prior year | (23,000,000) | (12,000,000) | |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | (18,000,000) | (14,000,000) | |
Post-Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1,000,000 | 1,000,000 | 1,000,000 |
Interest cost | 1,000,000 | 1,000,000 | 1,000,000 |
Prior service credit recognition | 0 | 0 | (1,000,000) |
Net gain recognition | (2,000,000) | 0 | 0 |
Net periodic cost | (1,000,000) | 1,000,000 | $ 1,000,000 |
Other comprehensive gain (loss) attributable to change from prior year | 2,000,000 | (10,000,000) | |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ 1,000,000 | $ (9,000,000) |
EMPLOYEE BENEFIT PLANS (Summa_3
EMPLOYEE BENEFIT PLANS (Summary Of Accumulated Benefit Obligation) (Details) - Defined Benefit Pension Plans - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 269 | $ 264 |
Qualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | 263 | 258 |
Non-qualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 6 | $ 6 |
EMPLOYEE BENEFIT PLANS (Project
EMPLOYEE BENEFIT PLANS (Projected Benefit Obligations In Excess Of Plan Assets) (Details) - Defined Benefit Pension Plans - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Qualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 289,000,000 | $ 284,000,000 |
Fair value of plan assets | 308,000,000 | 285,000,000 |
Non-qualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 6,000,000 | 6,000,000 |
Fair value of plan assets | $ 0 | $ 0 |
EMPLOYEE BENEFIT PLANS (Accumul
EMPLOYEE BENEFIT PLANS (Accumulated Benefit Obligations In Excess Of Plan Assets) (Details) - Defined Benefit Pension Plans - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Qualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 0 | $ 0 |
Fair value of plan assets | 0 | 0 |
Non-qualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | 6,000,000 | 6,000,000 |
Fair value of plan assets | $ 0 | $ 0 |
EMPLOYEE BENEFIT PLANS (Expecte
EMPLOYEE BENEFIT PLANS (Expected Benefit Payments) (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Defined Benefit Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | $ 15 |
2025 | 14 |
2026 | 15 |
2027 | 16 |
2028 | 17 |
Next 5 years | 99 |
Post-Retirement Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 1 |
2025 | 1 |
2026 | 1 |
2027 | 1 |
2028 | 1 |
Next 5 years | $ 7 |
EMPLOYEE BENEFIT PLANS (Fair Va
EMPLOYEE BENEFIT PLANS (Fair Value Measurement Levels For Qualified Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Short-term investments, which approximates fair value | $ 2 | $ 4 |
Total | $ 308 | $ 283 |
Percent of fixed income funds in US securities | 90% | 70% |
Percent of fixed income funds in international securities | 10% | 30% |
Percent of equities mutual funds in US equities | 100% | 50% |
Percent of equities mutual funds in international equities | 50% | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Short-term investments, which approximates fair value | $ 2 | $ 4 |
Total | 308 | 283 |
Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Short-term investments, which approximates fair value | 0 | 0 |
Total | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Short-term investments, which approximates fair value | 0 | 0 |
Total | 0 | 0 |
Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Mutual funds, fair value | 73 | 68 |
Fixed income | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Mutual funds, fair value | 73 | 68 |
Fixed income | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Mutual funds, fair value | 0 | 0 |
Fixed income | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Mutual funds, fair value | 0 | 0 |
Equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Mutual funds, fair value | 232 | 211 |
Equities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Mutual funds, fair value | 232 | 211 |
Equities | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Mutual funds, fair value | 0 | 0 |
Equities | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Mutual funds, fair value | $ 0 | $ 0 |
RELATED-PARTY TRANSACTIONS - Na
RELATED-PARTY TRANSACTIONS - Narrative (Details) - USD ($) | 1 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||
Shares received in exchange from affiliated entity for transfer (in shares) | 1,773.214 | ||
Preferred shares par value | $ 1,000,000 | ||
Annual dividend rate | 1.75% | ||
Shares transferred to affiliated entity | 9,719,971 | ||
Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Notes receivable outstanding | $ 0 | $ 840,000,000 | |
Shares received in exchange from affiliated entity for transfer (in shares) | 1,773.214 | ||
Preferred shares par value | $ 1,000,000 | ||
Annual dividend rate | 1.75% |
RELATED-PARTY TRANSACTIONS - Sc
RELATED-PARTY TRANSACTIONS - Schedule of Related-Party Long-Term Notes (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 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] | ||||||
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] | ||||||
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] | ||||||
Principal Amounts | $ 125,000,000 | |||||
Consolidated Balance Sheet Amount | 0 | 125,000,000 | ||||
Fair Value | $ 0 | $ 125,000,000 |
RELATED-PARTY TRANSACTIONS -Sch
RELATED-PARTY TRANSACTIONS -Schedule of Related-Party Interest Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Net investment income | $ 993 | $ 638 | $ 745 |
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 | $ 7 | 11 | 6 |
Affiliated Entity | 1.69% Long-term Note | |||
Related Party Transaction [Line Items] | |||
Net investment income | 2 | 5 | 5 |
Affiliated Entity | 1.00% Long-term Note | |||
Related Party Transaction [Line Items] | |||
Net investment income | 1 | 2 | 1 |
Affiliated Entity | 3.11% Long-term Note | |||
Related Party Transaction [Line Items] | |||
Net investment income | 5 | 4 | 0 |
Affiliated Entity | 4.34% Long-term Note | |||
Related Party Transaction [Line Items] | |||
Net investment income | $ 0 | $ 0 | $ 0 |
RELATED-PARTY TRANSACTIONS - _2
RELATED-PARTY TRANSACTIONS - Schedule of Dividends Received on Preferred Shares (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Dividends from preferred shares of affiliate | |||
Related Party Transaction [Line Items] | |||
Dividends received on preferred stock of affiliate | $ 31 | $ 31 | $ 31 |
Related-Party Transactions Sche
Related-Party Transactions Schedule of Expenses Incurred By Holdings From Services Provided By Affiliated Company (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |||
Expenses incurred | $ 204 | $ 204 | $ 133 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Contingency [Line Items] | |||
Uncertain tax positions | $ 0 | $ 0 | $ 0 |
Foreign tax credits | 0 | 3,000,000 | |
Net operating loss carryforwards | 1,000,000 | ||
Deferred tax assets, valuation allowance | 1,000,000 | ||
Unrealized losses on available for sale fixed maturity securities | 66,000,000 | 200,000,000 | |
Tax benefits related to stock vestings and option exercises | 2,000,000 | 3,000,000 | 3,000,000 |
Tax benefits related to payment of dividends on restricted stock | 400,000 | $ 400,000 | $ 400,000 |
Internal Revenue Service (IRS) | Tax Year 2015 | |||
Income Tax Contingency [Line Items] | |||
Federal income tax refund | 2,000,000 | ||
Internal Revenue Service (IRS) | Tax Year 2016 | |||
Income Tax Contingency [Line Items] | |||
Federal income tax refund | $ 5,000,000 |
INCOME TAXES - Schedule of Comp
INCOME TAXES - Schedule of Components Of The Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 284 | $ 95 | $ 102 |
Foreign | 0 | 0 | 0 |
Total current tax expense (benefit) | 284 | 95 | 102 |
Total deferred U.S. tax expense (benefit) | (74) | (207) | 90 |
Total income tax expense (benefit) | $ 210 | $ (112) | $ 192 |
INCOME TAXES - Schedule of Reco
INCOME TAXES - Schedule of Reconciliation Of Total Income Tax Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Expected income tax provision at the U.S. statutory tax rate | $ 248 | $ (117) | $ 208 |
Increase (reduction) in taxes resulting from: | |||
Tax exempt income | (3) | (4) | (4) |
Dividend received deduction | (2) | (3) | (1) |
Proration | 1 | 1 | 1 |
Creditable foreign premium tax | (14) | (11) | (13) |
Reserve adjustment | 0 | (19) | 0 |
U.S. BEAT tax | 0 | 22 | 0 |
Share based compensation | (3) | (3) | (2) |
Prior year true up | (21) | 16 | 0 |
Insurance company-owned life insurance | (13) | (1) | 0 |
Other | 17 | 7 | 3 |
Total income tax expense (benefit) | $ 210 | $ (112) | $ 192 |
INCOME TAXES - Schedule of Net
INCOME TAXES - Schedule of Net Deferred Income Tax Assets/(Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Loss reserves | $ 154 | $ 154 |
Unearned premium reserve | 143 | 114 |
Net unrealized investment losses | 66 | 200 |
Depreciation | 44 | 0 |
Lease Liability | 27 | 29 |
Unrealized foreign currency losses | 15 | 24 |
Investment impairments | 12 | 12 |
Equity compensation | 8 | 7 |
Amortization | 7 | 0 |
Net unrecognized losses on benefit plans | 4 | 9 |
Foreign tax credits | 0 | 3 |
Other assets | 17 | 12 |
Total deferred tax assets | 497 | 564 |
Deferred tax liabilities: | ||
Deferred acquisition costs | 139 | 105 |
Net fair value income | 136 | 141 |
Partnership Investments | 49 | 56 |
Right of use asset | 23 | 25 |
Bond market discount | 9 | 5 |
Depreciation | 0 | 16 |
Other liabilities | 5 | 6 |
Total deferred tax liabilities | 361 | 354 |
Net deferred tax assets/(liabilities) | $ 136 | $ 210 |
DIVIDEND RESTRICTIONS AND STA_3
DIVIDEND RESTRICTIONS AND STATUTORY FINANCIAL INFORMATION - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Dividend Restrictions And Statutory Financial Information [Abstract] | |||
Available for payment of dividends in 2012 without need for prior regulatory approval | $ 877 | ||
Statutory capital and surplus | 7,000 | $ 5,600 | |
Statutory net income (loss) | $ 877 | $ 294 | $ 264 |
DIVIDEND RESTRICTIONS AND STA_4
DIVIDEND RESTRICTIONS AND STATUTORY FINANCIAL INFORMATION - Schedule of Regulatory Targeted Capital And Actual Statutory Capital (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Dividend Restrictions And Statutory Financial Information [Abstract] | ||
Regulatory targeted capital | $ 4,242 | $ 3,353 |
Actual capital | $ 6,963 | $ 5,553 |
SCHEDULE I - SUMMARY OF INVES_2
SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES (Details) $ in Millions | Dec. 31, 2023 USD ($) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | $ 24,111 |
Market Value | 23,437 |
Amount Shown in Balance Sheet | 23,439 |
Fixed maturities | Fixed maturities - available for sale | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 16,305 |
Market Value | 15,932 |
Amount Shown in Balance Sheet | 15,932 |
Fixed maturities | Fixed maturities - held to maturity | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 859 |
Market Value | 850 |
Amount Shown in Balance Sheet | 851 |
U.S. government and government agencies | Fixed maturities - available for sale | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 265 |
Market Value | 247 |
Amount Shown in Balance Sheet | 247 |
State, municipalities and political subdivisions | Fixed maturities - available for sale | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 138 |
Market Value | 128 |
Amount Shown in Balance Sheet | 128 |
Foreign government securities | Fixed maturities - available for sale | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 859 |
Market Value | 835 |
Amount Shown in Balance Sheet | 835 |
Foreign corporate securities | Fixed maturities - available for sale | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 1,807 |
Market Value | 1,759 |
Amount Shown in Balance Sheet | 1,759 |
Foreign corporate securities | Fixed maturities - held to maturity | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 84 |
Market Value | 90 |
Amount Shown in Balance Sheet | 83 |
Public utilities | Fixed maturities - available for sale | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 238 |
Market Value | 231 |
Amount Shown in Balance Sheet | 231 |
Public utilities | Fixed maturities - held to maturity | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 4 |
Market Value | 5 |
Amount Shown in Balance Sheet | 4 |
All other corporate bonds | Fixed maturities - available for sale | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 8,990 |
Market Value | 8,907 |
Amount Shown in Balance Sheet | 8,907 |
All other corporate bonds | Fixed maturities - held to maturity | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 750 |
Market Value | 733 |
Amount Shown in Balance Sheet | 743 |
Commercial | Fixed maturities - available for sale | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 575 |
Market Value | 522 |
Amount Shown in Balance Sheet | 522 |
Commercial | Fixed maturities - held to maturity | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 21 |
Market Value | 21 |
Amount Shown in Balance Sheet | 21 |
Agency residential | Fixed maturities - available for sale | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 2,531 |
Market Value | 2,435 |
Amount Shown in Balance Sheet | 2,435 |
Non-agency residential | Fixed maturities - available for sale | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 429 |
Market Value | 441 |
Amount Shown in Balance Sheet | 441 |
Redeemable preferred stock | Fixed maturities - available for sale | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 474 |
Market Value | 427 |
Amount Shown in Balance Sheet | 427 |
Equity securities at fair value | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 91 |
Market Value | 91 |
Amount Shown in Balance Sheet | 91 |
Short-term investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 1,298 |
Market Value | 1,298 |
Amount Shown in Balance Sheet | 1,298 |
Other invested assets | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 3,259 |
Market Value | 3,259 |
Amount Shown in Balance Sheet | 3,259 |
Other Invested Assets, at Fair Value | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 1,773 |
Market Value | 1,481 |
Amount Shown in Balance Sheet | 1,481 |
Cash | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 527 |
Market Value | 527 |
Amount Shown in Balance Sheet | $ 527 |
SCHEDULE II _ CONDENSED FINAN_2
SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT - CONDENSED BALANCE SHEETS (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Condensed Financial Statements, Captions [Line Items] | |||
Fixed maturities - available for sale (amortized cost: 2023, $0; 2022, $0) | $ 15,932,000,000 | $ 12,671,000,000 | |
Equity securities, fair value | 91,000,000 | 194,000,000 | |
Other invested assets | 3,259,000,000 | 2,754,000,000 | |
Other invested assets, at fair value | 1,481,000,000 | 1,472,000,000 | |
Short-term investments | 1,298,000,000 | 812,000,000 | |
Cash | 527,000,000 | 481,000,000 | |
Total investments and cash | 23,439,000,000 | 19,195,000,000 | |
Accrued investment income | 222,000,000 | 150,000,000 | |
Other assets | 774,000,000 | 722,000,000 | |
TOTAL ASSETS | 31,638,000,000 | 27,957,000,000 | |
Senior notes | 2,349,000,000 | 2,347,000,000 | |
Long-term notes | 218,000,000 | 218,000,000 | |
Accrued interest on debt and borrowings | 22,000,000 | 19,000,000 | |
Due to affiliates | 526,000,000 | 489,000,000 | |
TOTAL LIABILITIES | 24,451,000,000 | 22,303,000,000 | |
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 $(76) at 2023 and $(225) at 2022 | (287,000,000) | (848,000,000) | |
Retained earnings | 6,372,000,000 | 5,400,000,000 | |
Total stockholder's equity | 7,187,000,000 | 5,654,000,000 | $ 7,038,000,000 |
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | 31,638,000,000 | 27,957,000,000 | |
Affiliated Entity | |||
Condensed Financial Statements, Captions [Line Items] | |||
Notes receivable - affiliated | 0 | 840,000,000 | |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Fixed maturities - available for sale (amortized cost: 2023, $0; 2022, $0) | 0 | 0 | |
Equity securities, fair value | 18,000,000 | 12,000,000 | |
Other invested assets | 190,000,000 | 194,000,000 | |
Other invested assets, at fair value | 1,481,000,000 | 1,472,000,000 | |
Short-term investments | 139,000,000 | 30,000,000 | |
Cash | 1,000,000 | 2,000,000 | |
Total investments and cash | 1,829,000,000 | 1,710,000,000 | |
Investment in subsidiaries, at equity in the underlying net assets | 7,545,000,000 | 5,496,000,000 | |
Accrued investment income | 6,000,000 | 12,000,000 | |
Other assets | 1,000,000 | 0 | |
TOTAL ASSETS | 9,916,000,000 | 8,388,000,000 | |
Senior notes | 2,349,000,000 | 2,347,000,000 | |
Long-term notes | 218,000,000 | 218,000,000 | |
Accrued interest on debt and borrowings | 18,000,000 | 17,000,000 | |
Income taxes | 142,000,000 | 144,000,000 | |
TOTAL LIABILITIES | 2,729,000,000 | 2,734,000,000 | |
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 $(76) at 2023 and $(225) at 2022 | (287,000,000) | (848,000,000) | |
Retained earnings | 6,372,000,000 | 5,400,000,000 | |
Total stockholder's equity | 7,187,000,000 | 5,654,000,000 | |
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | 9,916,000,000 | 8,388,000,000 | |
Parent Company | Affiliated Entity | |||
Condensed Financial Statements, Captions [Line Items] | |||
Notes receivable - affiliated | 535,000,000 | 1,170,000,000 | |
Due to affiliates | $ 3,000,000 | $ 7,000,000 |
SCHEDULE II _ CONDENSED FINAN_3
SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT - CONDENSED BALANCE SHEET (Additional Information) (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Condensed Financial Statements, Captions [Line Items] | ||
Amortized Cost | $ 16,304 | $ 13,699 |
Common shares, 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 | 1,000 | 1,000 |
Common shares, outstanding (in shares) | 1,000 | 1,000 |
Accumulated other comprehensive income (loss), net deferred income tax expense (benefit) | $ (76) | $ (225) |
Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Amortized Cost | $ 0 | $ 0 |
Common shares, 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 | 1,000 | 1,000 |
Common shares, outstanding (in shares) | 1,000 | 1,000 |
Accumulated other comprehensive income (loss), net deferred income tax expense (benefit) | $ (76) | $ (225) |
SCHEDULE II _ CONDENSED FINAN_4
SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT - CONDENSED STATEMENTS OF OPERATIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
REVENUES: | |||
Net investment income | $ 993 | $ 638 | $ 745 |
Net gains (losses) on investments | (180) | (982) | 501 |
Other income (expense) | (11) | (6) | 23 |
Total revenues | 9,337 | 7,526 | 8,448 |
CLAIMS AND EXPENSES: | |||
Interest expense | 134 | 101 | 70 |
Corporate expense | 18 | 26 | 33 |
Total claims and expenses | 8,156 | 8,083 | 7,457 |
INCOME (LOSS) BEFORE TAXES | 1,181 | (557) | 991 |
Income tax expense (benefit) | 210 | (112) | 192 |
NET INCOME (LOSS) | 972 | (445) | 800 |
COMPREHENSIVE INCOME (LOSS) | 1,533 | (1,384) | 623 |
Parent Company | |||
REVENUES: | |||
Net investment income | 19 | 47 | 39 |
Net gains (losses) on investments | 10 | (704) | 329 |
Other income (expense) | 1 | (3) | 0 |
Net income (loss) of subsidiaries | 987 | 114 | 551 |
Total revenues | 1,086 | (488) | 954 |
CLAIMS AND EXPENSES: | |||
Interest expense | 104 | 97 | 69 |
Corporate expense | 15 | 10 | 18 |
Total claims and expenses | 119 | 107 | 86 |
INCOME (LOSS) BEFORE TAXES | 967 | (595) | 867 |
Income tax expense (benefit) | (5) | (150) | 68 |
NET INCOME (LOSS) | 972 | (445) | 800 |
Total other comprehensive income (loss), net of tax | 561 | (939) | (177) |
COMPREHENSIVE INCOME (LOSS) | 1,533 | (1,384) | 623 |
Affiliated Entity | |||
REVENUES: | |||
Net investment income | $ 67 | $ 57 | $ 34 |
SCHEDULE II _ CONDENSED FINAN_5
SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT - CONDENSED STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ 972 | $ (445) | $ 800 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Increase (decrease) in income taxes | 27 | (286) | 100 |
Change in equity adjustments in limited partnerships | (83) | (90) | (368) |
Change in other assets and liabilities, net | (274) | (130) | (10) |
Amortization of bond premium (accrual of bond discount) | (43) | 22 | 31 |
Net (gains) losses on investments | 180 | 982 | (501) |
Net cash provided by (used in) operating activities | 2,374 | 2,146 | 2,625 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Proceeds from fixed maturities matured/called/repaid - available for sale | 1,206 | 1,399 | 2,330 |
Proceeds from fixed maturities sold - available for sale | 2,546 | 2,645 | 961 |
Proceeds from equity securities sold | 126 | 2,203 | 862 |
Distributions from other invested assets | 127 | 135 | 127 |
Cost of fixed maturities acquired - available for sale | (6,518) | (5,928) | (5,832) |
Cost of equity securities acquired | (14) | (951) | (1,052) |
Cost of other invested assets acquired | (611) | (1,241) | (430) |
Net change in short-term investments | (444) | (113) | 13 |
Net cash provided by (used in) investing activities | (2,599) | (2,329) | (3,427) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of senior notes | 0 | 0 | 968 |
Cost of debt repurchase | 0 | (6) | 0 |
Net cash provided by (used in) financing activities | 262 | (43) | 1,142 |
Cash, beginning of period | 481 | 699 | 379 |
Cash, end of period | 527 | 481 | 699 |
Parent Company | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | 972 | (445) | 800 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in (earnings) deficit of subsidiaries | (987) | (114) | (551) |
Dividends received from subsidiary | 0 | 250 | 0 |
Increase (decrease) in income taxes | (2) | (173) | (45) |
Change in equity adjustments in limited partnerships | (15) | (37) | (33) |
Change in other assets and liabilities, net | 2 | (5) | 40 |
Net (gains) losses on investments | (10) | 704 | (329) |
Net cash provided by (used in) operating activities | (40) | 180 | (118) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Additional investment in subsidiaries | (502) | (200) | 88 |
Proceeds from fixed maturities matured/called/repaid - available for sale | 0 | 0 | 0 |
Proceeds from fixed maturities sold - available for sale | 0 | 244 | 0 |
Proceeds from equity securities sold | 0 | 652 | 243 |
Distributions from other invested assets | 171 | 1,362 | 2,014 |
Cost of fixed maturities acquired - available for sale | 0 | (134) | (148) |
Cost of equity securities acquired | 0 | (93) | (516) |
Cost of other invested assets acquired | (156) | (1,278) | (2,076) |
Net change in short-term investments | (109) | (24) | 5 |
Proceeds from repayment of long term notes receivable - affiliated | 865 | 400 | 0 |
(Issuance) of long term notes receivable - affiliated | (230) | (1,100) | (470) |
Net cash provided by (used in) investing activities | 39 | (171) | (860) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of senior notes | 0 | 0 | 968 |
Cost of debt repurchase | 0 | (6) | 0 |
Net cash provided by (used in) financing activities | 0 | (6) | 968 |
Net increase (decrease) in cash | (1) | 2 | (10) |
Cash, beginning of period | 2 | 0 | 10 |
Cash, end of period | $ 1 | $ 2 | $ 0 |
SCHEDULE II _ CONDENSED FINAN_6
SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2015 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | May 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | May 31, 2022 | Oct. 21, 2021 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||
Long-term notes | $ 218,000,000 | $ 218,000,000 | |||||||
Repayment of debt | 0 | 6,000,000 | $ 0 | ||||||
Shares received in exchange from affiliated entity for transfer | 1,773.214 | ||||||||
Preferred shares par value | $ 1,000,000 | ||||||||
Annual dividend rate | 1.75% | ||||||||
Affiliated Entity | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Shares purchased and held | 9,719,971 | ||||||||
Shares fair value | $ 1,800,000,000 | ||||||||
Shares received in exchange from affiliated entity for transfer | 1,773.214 | ||||||||
Preferred shares par value | $ 1,000,000 | ||||||||
Annual dividend rate | 1.75% | ||||||||
Parent Company | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Long-term notes | 218,000,000 | 218,000,000 | |||||||
Proceeds from repayment of long term notes receivable - affiliated | 865,000,000 | 400,000,000 | 0 | ||||||
Repayment of debt | 0 | 6,000,000 | $ 0 | ||||||
Parent Company | Note Payable - Affiliated or Subsidiary | 3.72% Note Payable | May 2023 Promissory Note | Affiliated Entity | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Original Principal Amount | $ 230,000,000 | ||||||||
Other invested assets, at fair value | 3.72% | ||||||||
Long-term promissory note outstanding | 0 | ||||||||
Parent Company | Note Payable - Affiliated or Subsidiary | 4.34% Note Payable | December 2022 Promissory Note | Affiliated Entity | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Original Principal Amount | $ 125,000,000 | ||||||||
Other invested assets, at fair value | 4.34% | ||||||||
Long-term promissory note outstanding | 0 | ||||||||
Parent Company | Note Payable - Affiliated or Subsidiary | 3.35% Note Payable | September 2022 Promissory Note | Affiliated Entity | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Original Principal Amount | $ 560,000,000 | ||||||||
Other invested assets, at fair value | 3.35% | ||||||||
Proceeds from repayment of long term notes receivable - affiliated | 270,000,000 | ||||||||
Long-term promissory note outstanding | 290,000,000 | ||||||||
Parent Company | Note Payable - Affiliated or Subsidiary | 3.11% Note Payable | June 2022 Promissory Note | Affiliated Entity | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Original Principal Amount | $ 215,000,000 | ||||||||
Other invested assets, at fair value | 3.11% | ||||||||
Long-term promissory note outstanding | 0 | ||||||||
Parent Company | Note Payable - Affiliated or Subsidiary | 3.25% Note Payable | May 2022 Promissory Note | Affiliated Entity | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Original Principal Amount | $ 200,000,000 | ||||||||
Other invested assets, at fair value | 3.25% | ||||||||
Parent Company | Note Payable - Affiliated or Subsidiary | 3.25% Note Payable | October 2021 Promissory Note | Affiliated Entity | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Original Principal Amount | $ 470,000,000 | ||||||||
Other invested assets, at fair value | 3.25% | ||||||||
Long-term promissory note outstanding | 45,000,000 | ||||||||
Repayment of debt | $ 425,000,000 |
SCHEDULE III - SUPPLEMENTARY _2
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Acquisition Costs | $ 659 | $ 499 | $ 472 |
Reserve for Losses and Loss Adjustment Expenses | 15,796 | 14,977 | 13,121 |
Unearned Premium Reserves | 3,886 | 3,177 | 2,993 |
Premiums Earned | 8,536 | 7,876 | 7,179 |
Net Investment Income | 993 | 638 | 745 |
Incurred Loss and Loss Adjustment Expenses | 5,578 | 5,823 | 5,387 |
Amortization of Deferred Acquisition Costs | 1,851 | 1,632 | 1,513 |
Other Operating Expenses | 574 | 501 | 454 |
Net Written Premium | 9,212 | 8,032 | 7,719 |
Reinsurance | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Acquisition Costs | 487 | 329 | 315 |
Reserve for Losses and Loss Adjustment Expenses | 10,178 | 9,994 | 8,807 |
Unearned Premium Reserves | 2,050 | 1,453 | 1,427 |
Premiums Earned | 5,637 | 5,147 | 4,899 |
Net Investment Income | 640 | 426 | 500 |
Incurred Loss and Loss Adjustment Expenses | 3,329 | 3,926 | 3,750 |
Amortization of Deferred Acquisition Costs | 1,545 | 1,308 | 1,229 |
Other Operating Expenses | 167 | 138 | 142 |
Net Written Premium | 6,205 | 5,204 | 5,217 |
Insurance | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Acquisition Costs | 172 | 170 | 157 |
Reserve for Losses and Loss Adjustment Expenses | 5,617 | 4,983 | 4,314 |
Unearned Premium Reserves | 1,836 | 1,725 | 1,566 |
Premiums Earned | 2,900 | 2,729 | 2,279 |
Net Investment Income | 353 | 212 | 245 |
Incurred Loss and Loss Adjustment Expenses | 2,249 | 1,897 | 1,637 |
Amortization of Deferred Acquisition Costs | 306 | 325 | 284 |
Other Operating Expenses | 407 | 364 | 312 |
Net Written Premium | $ 3,007 | $ 2,828 | $ 2,503 |
SCHEDULE IV - REINSURANCE (Deta
SCHEDULE IV - REINSURANCE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Gross Amount | $ 3,709 | $ 3,544 | $ 2,982 |
Ceded to Other Companies | 1,878 | 1,613 | 1,544 |
Assumed from Other Companies | 6,705 | 5,945 | 5,741 |
Premiums earned | 8,536 | 7,876 | 7,179 |
Property, Liability and Casualty Insurance Product Line | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Gross Amount | 3,709 | 3,544 | 2,982 |
Ceded to Other Companies | 1,878 | 1,613 | 1,544 |
Assumed from Other Companies | 6,705 | 5,945 | 5,741 |
Premiums earned | $ 8,536 | $ 7,876 | $ 7,179 |
Assumed to Net | 78.60% | 75.50% | 80% |