Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-15731 | |
Entity Registrant Name | EVEREST GROUP, LTD. | |
Entity Incorporation, State or Country Code | D0 | |
Entity Tax Identification Number | 98-0365432 | |
Entity Address, Address Line One | Seon Place – 4th Floor | |
Entity Address, Address Line Two | 141 Front Street | |
Entity Address, Address Line Three | PO Box HM 845 | |
Entity Address, City or Town | Hamilton | |
Entity Address, Country | BM | |
Entity Address, Postal Zip Code | HM 19 | |
City Area Code | 441 | |
Local Phone Number | 295-0006 | |
Title of 12(b) Security | Common Shares, $0.01 par value | |
Trading Symbol | EG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 43,273,547 | |
Entity Central Index Key | 0001095073 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
ASSETS: | ||
Fixed maturities - available for sale, at fair value (amortized cost: 2024, $30,134; 2023, $28,568, credit allowances: 2024, $(42); 2023, $(48)) | $ 29,031 | $ 27,740 |
Fixed maturities - held to maturity, at amortized cost (fair value: 2024, $788; 2023, $854, net of credit allowances: 2024, $(8); 2023, $(8)) | 787 | 855 |
Equity securities, at fair value | 219 | 188 |
Other invested assets | 4,994 | 4,794 |
Short-term investments | 2,464 | 2,127 |
Cash | 1,570 | 1,437 |
Total investments and cash | 39,065 | 37,142 |
Accrued investment income | 360 | 324 |
Premiums receivable (net of credit allowances: 2024, $(45); 2023, $(41)) | 5,403 | 4,768 |
Reinsurance paid loss recoverables (net of credit allowances: 2024, $(29); 2023, $(26)) | 254 | 164 |
Reinsurance unpaid loss recoverables | 2,151 | 2,098 |
Funds held by reinsureds | 1,189 | 1,135 |
Deferred acquisition costs | 1,422 | 1,247 |
Prepaid reinsurance premiums | 806 | 713 |
Income tax asset, net | 927 | 868 |
Other assets (net of credit allowances: 2024, $(9); 2023, $(9)) | 983 | 941 |
TOTAL ASSETS | 52,560 | 49,399 |
LIABILITIES: | ||
Reserve for losses and loss adjustment expenses | 25,853 | 24,604 |
Unearned premium reserve | 7,313 | 6,622 |
Funds held under reinsurance treaties | 13 | 24 |
Amounts due to reinsurers | 869 | 650 |
Losses in course of payment | 289 | 171 |
Senior notes | 2,349 | 2,349 |
Long-term notes | 218 | 218 |
Borrowings from FHLB | 819 | 819 |
Accrued interest on debt and borrowings | 22 | 22 |
Unsettled securities payable | 175 | 137 |
Other liabilities | 458 | 582 |
Total liabilities | 38,378 | 36,197 |
Commitments and contingencies (Note 11) | ||
SHAREHOLDERS' EQUITY: | ||
Preferred shares, par value: $0.01; 50.0 shares authorized; no shares issued and outstanding | 0 | 0 |
Common shares, par value: $0.01; 200.0 shares authorized; (2024) 74.3 and (2023) 74.2 outstanding before treasury shares | 1 | 1 |
Additional paid-in capital | 3,785 | 3,773 |
Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) of $(162) at 2024 and $(99) at 2023 | (1,160) | (934) |
Treasury shares, at cost; 31.0 shares (2024) and 30.8 shares (2023) | (4,008) | (3,908) |
Retained earnings | 15,565 | 14,270 |
Total shareholders' equity | 14,182 | 13,202 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 52,560 | $ 49,399 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
ASSETS: | ||
Fixed maturities, amortized cost | $ 30,134 | $ 28,568 |
Allowance for credit losses | (42) | (48) |
Fixed maturities - held to maturity, at amortized cost, net of credit allowances, fair value | 788 | 854 |
Fixed maturities - held to maturity, at amortized cost, credit allowances | (8) | (8) |
Premium receivable, allowance for credit loss | (45) | (41) |
Reinsurance recoverables on paid losses, allowance | (29) | (26) |
Other assets, allowance for credit loss | $ (9) | $ (9) |
SHAREHOLDERS' EQUITY: | ||
Preferred stock, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, authorized (in shares) | 200,000,000 | 200,000,000 |
Common shares, outstanding (in shares) | 74,300,000 | 74,200,000 |
Accumulated other comprehensive income (loss), net deferred income tax expense (benefit) | $ (162) | $ (99) |
Treasury shares (in shares) | 31,000,000 | 30,800,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
REVENUES: | ||||
Premiums earned | $ 3,693 | $ 3,251 | $ 7,345 | $ 6,352 |
Net investment income | 528 | 357 | 985 | 617 |
Net gains (losses) on investments | (17) | 5 | (24) | 10 |
Other income (expense) | 23 | 38 | 54 | (42) |
Total revenues | 4,227 | 3,650 | 8,360 | 6,936 |
CLAIMS AND EXPENSES: | ||||
Incurred losses and loss adjustment expenses | 2,311 | 1,960 | 4,548 | 3,927 |
Commission, brokerage, taxes and fees | 790 | 686 | 1,571 | 1,347 |
Other underwriting expenses | 234 | 205 | 458 | 405 |
Corporate expenses | 22 | 17 | 44 | 36 |
Interest, fees and bond issue cost amortization expense | 37 | 33 | 75 | 65 |
Total claims and expenses | 3,395 | 2,901 | 6,696 | 5,779 |
INCOME (LOSS) BEFORE TAXES | 832 | 750 | 1,664 | 1,157 |
Income tax expense (benefit) | 108 | 80 | 207 | 122 |
NET INCOME (LOSS) | 724 | 670 | 1,457 | 1,035 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period | (70) | (169) | (227) | 77 |
Reclassification adjustment for realized losses (gains) included in net income (loss) | 9 | 2 | 14 | 5 |
Total URA(D) on securities arising during the period | (60) | (167) | (213) | 82 |
Foreign currency translation adjustments | 0 | (1) | (38) | 30 |
Reclassification adjustment for amortization of net (gain) loss included in net income (loss) | 24 | 0 | 25 | 1 |
Total benefit plan net gain (loss) for the period | 24 | 0 | 25 | 1 |
Total other comprehensive income (loss), net of tax | (36) | (168) | (227) | 113 |
COMPREHENSIVE INCOME (LOSS) | $ 688 | $ 502 | $ 1,230 | $ 1,148 |
EARNINGS PER COMMON SHARE: | ||||
Basic (in dollars per share) | $ 16.70 | $ 16.26 | $ 33.57 | $ 25.74 |
Diluted (in dollars per share) | $ 16.70 | $ 16.26 | $ 33.57 | $ 25.74 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY - USD ($) shares in Millions, $ in Millions | Total | COMMON SHARES | ADDITIONAL PAID-IN CAPITAL: | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), NET OF DEFERRED INCOME TAXES: | RETAINED EARNINGS: | TREASURY SHARES AT COST: |
Balance beginning of period (in shares) at Dec. 31, 2022 | 39.2 | |||||
Balance beginning of period at Dec. 31, 2022 | $ 1 | $ 2,302 | $ (1,996) | $ 12,042 | $ (3,908) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issued (redeemed) during the period, net (in shares) | 4.2 | |||||
Public offering of shares | 1,445 | |||||
Share-based compensation plans | 5 | |||||
Net increase (decrease) during the period | $ 113 | 113 | ||||
Net income (loss) | 1,035 | 1,035 | ||||
Dividends declared ($2.00 per share in 2Q 2024 and $3.75 per share YTD in 2024;$1.65 per share in 2Q 2023 and $3.30 per share YTD in 2023) | (136) | |||||
Balance end of period (in shares) at Jun. 30, 2023 | 43.4 | |||||
Balance end of period at Jun. 30, 2023 | 10,902 | $ 1 | 3,753 | (1,883) | 12,940 | (3,908) |
Balance beginning of period (in shares) at Mar. 31, 2023 | 39.3 | |||||
Balance beginning of period at Mar. 31, 2023 | $ 1 | 2,295 | (1,716) | 12,342 | (3,908) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issued (redeemed) during the period, net (in shares) | 4.1 | |||||
Public offering of shares | 1,445 | |||||
Share-based compensation plans | 12 | |||||
Net increase (decrease) during the period | (168) | (168) | ||||
Net income (loss) | 670 | 670 | ||||
Dividends declared ($2.00 per share in 2Q 2024 and $3.75 per share YTD in 2024;$1.65 per share in 2Q 2023 and $3.30 per share YTD in 2023) | (72) | |||||
Balance end of period (in shares) at Jun. 30, 2023 | 43.4 | |||||
Balance end of period at Jun. 30, 2023 | $ 10,902 | $ 1 | 3,753 | (1,883) | 12,940 | (3,908) |
Balance beginning of period (in shares) at Dec. 31, 2023 | 74.2 | 43.4 | ||||
Balance beginning of period at Dec. 31, 2023 | $ 13,202 | $ 1 | 3,773 | (934) | 14,270 | (3,908) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issued (redeemed) during the period, net (in shares) | 0.2 | |||||
Treasury shares acquired (in shares) | (0.3) | |||||
Share-based compensation plans | 12 | |||||
Net increase (decrease) during the period | (227) | (227) | ||||
Net income (loss) | $ 1,457 | 1,457 | ||||
Dividends declared ($2.00 per share in 2Q 2024 and $3.75 per share YTD in 2024;$1.65 per share in 2Q 2023 and $3.30 per share YTD in 2023) | (163) | |||||
Purchase of treasury shares | (100) | |||||
Balance end of period (in shares) at Jun. 30, 2024 | 74.3 | 43.3 | ||||
Balance end of period at Jun. 30, 2024 | $ 14,182 | $ 1 | 3,785 | (1,160) | 15,565 | (4,008) |
Balance beginning of period (in shares) at Mar. 31, 2024 | 43.5 | |||||
Balance beginning of period at Mar. 31, 2024 | $ 1 | 3,768 | (1,125) | 14,927 | (3,943) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Treasury shares acquired (in shares) | (0.2) | |||||
Share-based compensation plans | 17 | |||||
Net increase (decrease) during the period | (36) | (36) | ||||
Net income (loss) | $ 724 | 724 | ||||
Dividends declared ($2.00 per share in 2Q 2024 and $3.75 per share YTD in 2024;$1.65 per share in 2Q 2023 and $3.30 per share YTD in 2023) | (86) | |||||
Purchase of treasury shares | (65) | |||||
Balance end of period (in shares) at Jun. 30, 2024 | 74.3 | 43.3 | ||||
Balance end of period at Jun. 30, 2024 | $ 14,182 | $ 1 | $ 3,785 | $ (1,160) | $ 15,565 | $ (4,008) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (in dollars per share) | $ 2 | $ 1.65 | $ 3.75 | $ 3.30 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 1,457 | $ 1,035 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Decrease (increase) in premiums receivable | (685) | (584) |
Decrease (increase) in funds held by reinsureds, net | (66) | (5) |
Decrease (increase) in reinsurance recoverables | (236) | (21) |
Decrease (increase) in income taxes | 4 | 56 |
Decrease (increase) in prepaid reinsurance premiums | (130) | (40) |
Increase (decrease) in reserve for losses and loss adjustment expenses | 1,388 | 1,142 |
Increase (decrease) in unearned premiums | 744 | 732 |
Increase (decrease) in amounts due to reinsurers | 258 | 63 |
Increase (decrease) in losses in course of payment | 122 | 75 |
Change in equity adjustments in limited partnerships | (177) | (56) |
Distribution of limited partnership income | 60 | 49 |
Change in other assets and liabilities, net | (292) | (293) |
Non-cash compensation expense | 33 | 25 |
Amortization of bond premium (accrual of bond discount) | (65) | (11) |
Net (gains) losses on investments | 24 | (10) |
Net cash provided by (used in) operating activities | 2,439 | 2,158 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from fixed maturities matured/called/repaid - available for sale | 1,707 | 1,137 |
Proceeds from fixed maturities sold - available for sale | 1,085 | 168 |
Proceeds from fixed maturities matured/called/repaid - held to maturity | 109 | 61 |
Proceeds from equity securities sold | 15 | 46 |
Distributions from other invested assets | 209 | 133 |
Cost of fixed maturities acquired - available for sale | (4,475) | (3,396) |
Cost of fixed maturities acquired - held to maturity | (36) | (15) |
Cost of equity securities acquired | (35) | (3) |
Cost of other invested assets acquired | (314) | (298) |
Net change in short-term investments | (299) | (625) |
Net change in unsettled securities transactions | 18 | 41 |
Net cash provided by (used in) investing activities | (2,016) | (2,752) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Common shares issued (redeemed) during the period for share-based compensation, net of expense | (21) | (19) |
Proceeds from public offering of common shares | 0 | 1,445 |
Purchase of treasury shares | (100) | 0 |
Dividends paid to shareholders | (163) | (136) |
Cost of shares withheld on settlements of share-based compensation awards | (21) | (20) |
Net cash provided by (used in) financing activities | (305) | 1,269 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 14 | (7) |
Net increase (decrease) in cash | 133 | 668 |
Cash, beginning of period | 1,437 | 1,398 |
Cash, end of period | 1,570 | 2,067 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Income taxes paid (recovered) | 203 | 73 |
Interest paid | 74 | 64 |
NON-CASH TRANSACTIONS: | ||
Non-cash limited partnership distribution | $ 23 | $ 0 |
GENERAL
GENERAL | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | GENERAL Everest Group, Ltd . (“Group”), a Bermuda company, through its subsidiaries, principally provides reinsurance and insurance in the U.S., Bermuda and other international markets. As used in this document, “Company” and “Everest” mean Group and its subsidiaries. Unless noted otherwise, all tabular dollar amounts are in millions of United States (“U.S.”) dollars (“U.S. dollars” or “$”). Some amounts may not reconcile due to rounding. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The unaudited consolidated financial statements of the Company as of June 30, 2024 and December 31, 2023 and for the three and six months ended June 30, 2024 and 2023 include all adjustments, consisting of normal recurring accruals, which, in the opinion of management, are necessary for a fair statement of the results on an interim basis. Certain financial information, which is normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), has been omitted since it is not required for interim reporting purposes. The December 31, 2023 consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The results for the three and six months ended June 30, 2024 and 2023 are not necessarily indicative of the results for a full year. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the years ended December 31, 2023, 2022 and 2021, included in the Company’s most recent Form 10-K filing. The Company consolidates the results of operations and financial position of all voting interest entities ("VOE") in which the Company has a controlling financial interest and all variable interest entities ("VIE") in which the Company is considered to be the primary beneficiary. The consolidation assessment, including the determination as to whether an entity qualifies as a VIE or VOE, depends on the facts and circumstances surrounding each entity. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities (and disclosure of contingent assets and liabilities) at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Ultimate actual results could differ, possibly materially, from those estimates. All intercompany accounts and transactions have been eliminated. Adoption of New Accounting Standards The Company did not adopt any new accounting standards that had a material impact during the three and six months ended June 30, 2024. Future Adoption of Recently Issued Accounting Standards The Company assessed the adoption impacts of recently issued accounting standards that are effective after 2024 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 2024. There were no accounting standards identified, other than those directly referenced below, that are expected to have a material impact to Group. 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 | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS The tables below present the amortized cost, allowance for credit losses, gross unrealized appreciation/(depreciation) (“URA(D)”) and fair value of fixed maturity securities - available for sale for the periods indicated: At June 30, 2024 (Dollars in millions) Amortized Allowance for Unrealized Unrealized Fair Fixed maturity securities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 1,070 $ — $ 3 $ (49) 1,024 Obligations of U.S. states and political subdivisions 114 — 1 (9) 105 Corporate Securities 8,297 (42) 70 (347) 7,979 Asset-backed Securities 5,317 — 27 (27) 5,317 Mortgage-backed securities Commercial 1,016 — 1 (83) 934 Agency Residential 5,025 — 22 (302) 4,745 Non-agency Residential 940 — 8 (5) 943 Foreign government securities 2,370 — 11 (140) 2,240 Foreign corporate securities 5,985 — 46 (287) 5,744 Total fixed maturity securities - available for sale $ 30,134 $ (42) $ 188 $ (1,249) $ 29,031 (Some amounts may not reconcile due to rounding.) At December 31, 2023 (Dollars in millions) Amortized Allowance for Unrealized Unrealized Fair Fixed maturity securities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 1,045 $ — $ 3 $ (52) $ 996 Obligations of U.S. states and political subdivisions 138 — 1 (11) 128 Corporate securities 7,587 (47) 135 (322) 7,353 Asset-backed securities 5,644 — 25 (51) 5,618 Mortgage-backed securities Commercial 1,091 — 1 (92) 1,000 Agency residential 4,869 — 55 (229) 4,695 Non-agency residential 431 — 14 (2) 443 Foreign government securities 2,042 — 33 (108) 1,967 Foreign corporate securities 5,720 (1) 92 (271) 5,540 Total fixed maturity securities - available for sale $ 28,568 $ (48) $ 358 $ (1,137) $ 27,740 (Some amounts may not reconcile due to rounding.) The following tables show amortized cost, allowance for credit losses, gross URA(D) and fair value of fixed maturity securities - held to maturity for the periods indicated: At June 30, 2024 (Dollars in millions) Amortized Allowance for Unrealized Unrealized Fair Fixed maturity securities - held to maturity Corporate Securities $ 173 $ (2) $ 5 $ (5) $ 171 Asset-backed Securities 517 (5) 5 (8) 509 Mortgage-backed securities Commercial 21 — — — 21 Foreign corporate securities 84 (1) 4 — 87 Total fixed maturity securities - held to maturity $ 796 (8) $ 14 $ (13) $ 788 (Some amounts may not reconcile due to rounding.) At December 31, 2023 (Dollars in millions) Amortized Allowance for Unrealized Unrealized Fair Fixed maturity securities - held to maturity Corporate Securities $ 150 $ (2) $ 1 $ (3) $ 146 Asset-backed Securities 609 (5) 4 (10) 597 Mortgage-backed securities Commercial 21 — — — 21 Foreign corporate securities 84 (1) 7 — 90 Total fixed maturity securities - held to maturity $ 864 $ (8) $ 12 $ (13) $ 854 (Some amounts may not reconcile due to rounding.) The amortized cost and fair value of fixed maturity securities - available for sale are shown in the following table by contractual maturity. As the stated maturity of such securities may not be indicative of actual maturities, the totals for mortgage-backed and asset-backed securities are shown separately. At June 30, 2024 At December 31, 2023 (Dollars in millions) Amortized Fair Amortized Fair Fixed maturity securities – available for sale Due in one year or less $ 1,472 $ 1,439 $ 1,289 $ 1,261 Due after one year through five years 7,560 7,264 7,094 6,858 Due after five years through ten years 6,350 6,050 5,613 5,405 Due after ten years 2,454 2,339 2,537 2,460 Asset-backed securities 5,317 5,317 5,644 5,618 Mortgage-backed securities Commercial 1,016 934 1,091 1,000 Agency residential 5,025 4,745 4,869 4,695 Non-agency residential 940 943 431 443 Total fixed maturity securities - available for sale $ 30,134 $ 29,031 $ 28,568 $ 27,740 (Some amounts may not reconcile due to rounding.) The amortized cost and fair value of fixed maturity securities - held to maturity are shown in the following table by contractual maturity. As the stated maturity of such securities may not be indicative of actual maturities, the totals for mortgage-backed and asset-backed securities are shown separately. At June 30, 2024 At December 31, 2023 (Dollars in millions) Amortized Fair Amortized Fair Fixed maturity securities – held to maturity Due in one year or less $ 12 $ 12 $ 5 $ 5 Due after one year through five years 53 52 59 58 Due after five years through ten years 42 41 43 42 Due after ten years 151 154 127 131 Asset-backed securities 517 509 609 597 Mortgage-backed securities Commercial 21 21 21 21 Total fixed maturity securities - held to maturity $ 796 $ 788 $ 864 $ 854 (Some amounts may not reconcile due to rounding.) The changes in net URA(D) for the Company’s investments are as follows: Three Months Ended Six Months Ended (Dollars in millions) 2024 2023 2024 2023 Increase (decrease) during the period between the fair value and cost of investments carried at fair value, and deferred taxes thereon: Fixed maturity securities - available for sale and short-term investments $ (90) $ (195) $ (276) $ 84 Change in URA(D), pre-tax (90) (195) (276) 84 Deferred tax benefit (expense) 30 28 63 (2) Change in URA(D), net of deferred taxes, included in shareholders’ equity $ (60) $ (167) $ (213) $ 82 (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 the individual securities had been in a continuous unrealized loss position for the periods indicated: Duration of Unrealized Loss at June 30, 2024 by Security Type Less than 12 months Greater than 12 months Total (Dollars in millions) Fair Value Gross Fair Value Gross Fair Value Gross Fixed maturity securities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 187 $ (4) $ 734 $ (44) $ 922 $ (49) Obligations of U.S. states and political subdivisions 5 — 64 (9) 69 (9) Corporate securities 2,331 (60) 2,868 (286) 5,199 (346) Asset-backed securities 341 (3) 607 (24) 948 (27) Mortgage-backed securities Commercial 194 (18) 694 (65) 888 (83) Agency residential 1,853 (100) 1,567 (203) 3,420 (302) Non-agency residential 384 (3) 60 (2) 444 (5) Foreign government securities 713 (24) 927 (116) 1,639 (140) Foreign corporate securities 1,406 (21) 2,457 (266) 3,864 (287) Total $ 7,414 $ (233) $ 9,978 $ (1,016) $ 17,392 $ (1,248) Securities where an allowance for credit loss was recorded 15 (1) 2 — 16 (1) Total fixed maturity securities - available for sale $ 7,428 $ (234) $ 9,980 $ (1,016) $ 17,408 $ (1,249) (Some amounts may not reconcile due to rounding.) Duration of Unrealized Loss at June 30, 2024 by Maturity Less than 12 months Greater than 12 months Total (Dollars in millions) Fair Value Gross Fair Value Gross Fair Value Gross Fixed maturity securities - available for sale Due in one year or less $ 256 $ (7) $ 763 $ (31) $ 1,019 $ (39) Due in one year through five years 1,602 (28) 3,727 (299) 5,328 (326) Due in five years through ten years 1,955 (49) 1,971 (303) 3,927 (352) Due after ten years 829 (26) 589 (88) 1,418 (114) Asset-backed securities 341 (3) 607 (24) 948 (27) Mortgage-backed securities 2,431 (120) 2,321 (270) 4,752 (390) Total $ 7,414 $ (233) $ 9,978 $ (1,016) $ 17,392 $ (1,248) Securities where an allowance for credit loss was recorded 15 (1) 2 — 16 (1) Total fixed maturity securities - available for sale $ 7,428 $ (234) $ 9,980 $ (1,016) $ 17,408 $ (1,249) (Some amounts may not reconcile due to rounding.) The aggregate fair value and gross unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position at June 30, 2024 were $17.4 billion and $1.2 billion, respectively. The fair value of securities for the single issuer (the United States government), whose securities comprised the largest unrealized loss position at June 30, 2024, amounted to less than 3.0% of the overall fair value of the Company’s fixed maturity securities - available for sale. The fair value of the securities for the issuer with the second largest unrealized loss position at June 30, 2024 comprised less than 0.8% 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 $234 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, agency residential and commercial mortgage-backed securities and foreign government securities. Of these unrealized losses, $227 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. The $1.0 billion of unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position for more than one year related primarily to domestic and foreign corporate securities, agency residential mortgage-backed securities, foreign government securities and commercial mortgage-backed securities. Of these unrealized losses, $1.0 billion were related to securities that were rated investment grade by at least one nationally recognized rating agency. In all instances, there were no projected cash flow shortfalls to recover the full book value of the investments and the related interest obligations. The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments. Based upon the Company’s current evaluation of securities in an unrealized loss position as of June 30, 2024, 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, 2023 by Security Type Less than 12 months Greater than 12 months Total (Dollars in millions) Fair Value Gross Fair Value Gross Fair Value Gross Fixed maturity securities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 122 $ (3) $ 772 $ (49) $ 893 $ (52) Obligations of U.S. states and political subdivisions 3 — 74 (11) 77 (11) Corporate securities 1,019 (58) 2,780 (263) 3,799 (321) Asset-backed securities 196 (2) 2,014 (49) 2,210 (51) Mortgage-backed securities Commercial 181 (19) 742 (73) 923 (92) Agency residential 423 (4) 2,126 (225) 2,549 (229) Non-agency residential 126 (1) 4 — 130 — Foreign government securities 172 (7) 985 (101) 1,156 (108) Foreign corporate securities 324 (6) 2,726 (265) 3,050 (271) Total $ 2,564 $ (101) $ 12,222 $ (1,035) $ 14,787 $ (1,136) Securities where an allowance for credit loss was recorded 2 (1) — — 2 (1) Total fixed maturity securities - available for sale $ 2,566 $ (102) $ 12,222 $ (1,035) $ 14,789 $ (1,137) (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 Value Gross Fair Value Gross Fair Value Gross Fixed maturity securities - available for sale Due in one year or less $ 184 $ (3) $ 773 $ (30) $ 958 $ (33) Due in one year through five years 699 (18) 3,841 (271) 4,540 (289) Due in five years through ten years 328 (15) 2,306 (310) 2,633 (325) Due after ten years 429 (39) 417 (77) 845 (116) Asset-backed securities 196 (2) 2,014 (49) 2,210 (51) Mortgage-backed securities 729 (24) 2,872 (298) 3,601 (323) Total $ 2,564 $ (101) $ 12,222 $ (1,035) $ 14,787 $ (1,136) Securities where an allowance for credit loss was recorded 2 (1) — — 2 (1) Total fixed maturity securities - available for sale $ 2,566 $ (102) $ 12,222 $ (1,035) $ 14,789 $ (1,137) (Some amounts may not reconcile due to rounding.) The aggregate fair value and gross unrealized losses related to fixed maturity - available for sale investments in an unrealized loss position at December 31, 2023 were $14.8 billion and $1.1 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, 2023, amounted to less than 3.0% 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 0.7% 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 $102 million of unrealized losses related to fixed maturity securities - available for sale that have been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate securities, asset-backed securities, agency residential mortgage-backed securities and foreign government securities. Of these unrealized losses, $86 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. The $1.0 billion of unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position for more than one year related primarily to domestic and foreign corporate securities, agency residential mortgage-backed securities and foreign government securities. Of these unrealized losses, $1.0 billion were related to securities that were rated investment grade by at least one nationally recognized rating agency. In all instances, there were no projected cash flow shortfalls to recover the full book value of the investments and the related interest obligations. The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments. The components of net investment income are presented in the table below for the periods indicated: Three Months Ended Six Months Ended (Dollars in millions) 2024 2023 2024 2023 Fixed maturities $ 369 $ 276 $ 721 $ 523 Equity securities 1 1 2 2 Short-term investments and cash 43 34 81 51 Other invested assets Limited partnerships 94 53 148 38 Other 30 6 50 27 Gross investment income before adjustments 537 369 1,001 641 Funds held interest income (expense) 9 2 15 2 Future policy benefit reserve income (expense) — — — — Gross investment income 545 371 1,016 643 Investment expenses 18 14 31 26 Net investment income $ 528 $ 357 $ 985 $ 617 (Some amounts may not reconcile due to rounding.) The Company records results from limited partnership investments on the equity method of accounting with changes in value reported through net investment income. The net investment income from limited partnerships is dependent upon the Company’s share of the net asset values (“NAVs”) of interests underlying each limited partnership. Due to the timing of receiving financial information from these partnerships, the results are generally reported on a one month or quarter lag. If the Company determines there has been a significant decline in value of a limited partnership during this lag period, a loss will be recorded in the period in which the Company identifies the decline. The Company had contractual commitments to invest up to an additional $2.8 billion in limited partnerships and private placement loan securities at June 30, 2024. These commitments will be funded when called in accordance with the partnership and loan agreements, which have investment periods that expire, unless extended, through 2034. In 2022, the Company entered into corporate-owned life insurance (“COLI”) policies, which are invested in debt and equity securities. The COLI policies are carried within other invested assets at policy cash surrender value of $1.4 billion and $1.3 billion as of June 30, 2024 and December 31, 2023, respectively. Variable Interest Entities The Company is engaged with various special purpose entities and other entities that are deemed to be VIEs primarily as an investor through normal investment activities but also as an investment manager. A VIE is an entity that either has investors that lack certain essential characteristics of a controlling financial interest, such as simple majority kick-out rights, or lacks sufficient funds to finance its own activities without financial support provided by other entities. The Company performs ongoing qualitative assessments of its VIEs to determine whether the Company has a controlling financial interest in the VIE and therefore is the primary beneficiary. The Company is deemed to have a controlling financial interest when it has both the ability to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. Based on the Company’s assessment, if it determines it is the primary beneficiary, the Company consolidates the VIE in the Company’s Consolidated Financial Statements. As of June 30, 2024 and December 31, 2023, the Company did not hold any securities for which it is the primary beneficiary. The Company, through normal investment activities, makes passive investments in general and limited partnerships and other alternative investments. For these non-consolidated VIEs, the Company has determined it is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic performance of the investments. The Company’s maximum exposure to loss as of June 30, 2024 and December 31, 2023 is limited to the total carrying value of $5.0 billion and $4.8 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. Exposure relating specifically to general and limited partnerships as of June 30, 2024 and December 31, 2023 is limited to the total carrying value of $3.6 billion and $3.4 billion. As of June 30, 2024, the Company has outstanding commitments totaling $2.2 billion 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, credit subordination that reduces the Company’s obligation to absorb losses or right to receive benefits or the Company’s inability to direct the activities that most significantly impact the economic performance of the VIEs. The Company’s maximum exposure to loss on these investments is limited to the amount of the Company’s investment. The components of net gains (losses) on investments are presented in the table below for the periods indicated: Three Months Ended Six Months Ended (Dollars in millions) 2024 2023 2024 2023 Fixed maturity securities Allowance for credit losses $ 4 $ — $ 6 $ (8) Net realized gains (losses) from dispositions (15) (3) (22) (1) Equity securities, fair value Net realized gains (losses) from dispositions — — 1 7 Gains (losses) from fair value adjustments (5) 8 (8) 12 Other invested assets (1) — (1) — Total net gains (losses) on investments $ (17) $ 5 $ (24) $ 10 (Some amounts may not reconcile due to rounding.) The following tables provide a roll forward of the Company’s beginning and ending balance of allowance for credit losses for the periods indicated: Roll Forward of Allowance for Credit Losses - Fixed Maturities - Available for Sale Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 (Dollars in millions) Corporate Foreign Total Corporate Foreign Total Beginning balance $ (45) $ — $ (46) $ (47) $ (1) $ (48) 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 3 — 4 5 1 6 Balance, end of period $ (42) $ — $ (42) $ (42) $ — $ (42) (Some amounts may not reconcile due to rounding.) Roll Forward of Allowance for Credit Losses - Fixed Maturities - Available for Sale Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 (Dollars in millions) Corporate Foreign Total Corporate Foreign Total Beginning balance $ (55) $ (7) $ (62) $ (45) $ (10) $ (54) Credit losses on securities where credit losses were not previously recorded (2) — (2) (14) — (14) Increases in allowance on previously impaired securities — — — — — — Decreases in allowance on previously impaired securities — — — — — — Reduction in allowance due to disposals 1 — 1 4 3 6 Balance, end of period $ (56) $ (7) $ (63) $ (56) $ (7) $ (63) (Some amounts may not reconcile due to rounding.) Roll Forward of Allowance for Credit Losses - Fixed Maturities - Held to Maturity Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 (Dollars in millions) Corporate Asset-Backed Foreign Total Corporate Asset-Backed Foreign Total Beginning balance $ (2) $ (5) $ (1) $ (9) $ (2) $ (5) $ (1) $ (8) Credit losses on securities where credit losses were not previously recorded — — — — — — (1) (1) 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) $ (2) $ (5) $ (1) $ (8) (Some amounts may not reconcile due to rounding.) Roll Forward of Allowance for Credit Losses - Fixed Maturities - Held to Maturity Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 (Dollars in millions) Corporate Asset-Backed Foreign Total Corporate Asset-Backed Foreign Total Beginning balance $ (2) $ (6) $ (1) (9) $ (2) $ (6) $ (1) $ (9) Credit losses on securities where credit losses were not previously recorded — — — — — — — — Increases in allowance on previously impaired securities — — — — — — — — Decreases in allowance on previously impaired securities — — — — — — — — Reduction in allowance due to disposals — — — — — — — — Balance, end of period (2) (5) $ (1) $ (8) $ (2) $ (5) $ (1) $ (8) (Some amounts may not reconcile due to rounding.) The proceeds and split between gross gains and losses from dispositions of fixed maturity and equity securities are presented in the table below for the periods indicated: Three Months Ended Six Months Ended (Dollars in millions) 2024 2023 2024 2023 Proceeds from sales of fixed maturity securities - available for sale $ 678 $ 96 $ 1,085 $ 168 Gross gains from dispositions 16 7 26 17 Gross losses from dispositions (30) (10) (48) (19) Proceeds from sales of equity securities $ 15 $ — $ 15 $ 46 Gross gains from dispositions 1 — 2 7 Gross losses from dispositions — — — — (Some amounts may not reconcile due to rounding.) |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE GAAP guidance regarding fair value measurements addresses how companies should measure fair value when they are required to use fair value measures for recognition or disclosure purposes under GAAP and provides a common definition of fair value to be used throughout GAAP. It defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly fashion between market participants at the measurement date. In addition, it establishes a three-level valuation hierarchy for the disclosure of fair value measurements. The valuation hierarchy is based on the transparency of inputs to the valuation of an asset or liability. The level in the hierarchy within which a given fair value measurement falls is determined based on the lowest level input that is significant to the measurement, with Level 1 being the highest priority and Level 3 being the lowest priority. The levels in the hierarchy are defined as follows: Level 1: Inputs to the valuation methodology are observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in an active market; Level 2: Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company’s fixed maturity and equity securities are 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 June 30, 2024, $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, 2023, $2.0 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 nationally recognized sources. 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 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; and • Foreign corporate securities are comprised of global non-U.S. corporate bond issuances, and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source. The following tables present the fair value measurement levels for all assets and liabilities, which the Company has recorded at fair value as of the periods indicated: Fair Value Measurement Using June 30, 2024 Quoted Prices Significant Significant (Dollars in millions) Assets: Fixed maturities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 1,024 $ — $ 1,024 $ — Obligations of U.S. States and political subdivisions 105 — 105 — Corporate securities 7,979 — 7,390 589 Asset-backed securities 5,317 — 3,875 1,442 Mortgage-backed securities Commercial 934 — 934 — Agency residential 4,745 — 4,745 — Non-agency residential 943 — 943 — Foreign government securities 2,240 — 2,240 — Foreign corporate securities 5,744 — 5,730 14 Total fixed maturities - available for sale 29,031 — 26,987 2,045 Equity securities, fair value 219 70 144 5 (Some amounts may not reconcile due to rounding.) Fair Value Measurement Using (Dollars in millions) December 31, 2023 Quoted Prices Significant Significant Assets: Fixed maturities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 996 $ — $ 996 $ — Obligations of U.S. States and political subdivisions 128 — 128 — Corporate securities 7,353 — 6,681 672 Asset-backed securities 5,618 — 4,313 1,305 Mortgage-backed securities Commercial 1,000 — 1,000 — Agency residential 4,695 — 4,695 — Non-agency residential 443 — 443 — Foreign government securities 1,967 — 1,967 — Foreign corporate securities 5,540 — 5,524 16 Total fixed maturities - available for sale 27,740 — 25,747 1,993 Equity securities, fair value 188 70 118 — (Some amounts may not reconcile due to rounding.) The following tables present the activity under Level 3, fair value measurements using significant unobservable inputs for fixed maturities - available for sale, for the periods indicated: Total Fixed Maturities - Available for Sale Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 (Dollars in millions) Corporate Asset-Backed Foreign Total Corporate Asset-Backed Foreign Total Beginning balance of fixed maturities $ 620 $ 1,340 $ 16 $ 1,976 $ 672 $ 1,305 $ 16 $ 1,993 Total gains or (losses) (realized/unrealized) Included in earnings 5 — — 5 6 — — 6 Included in other comprehensive income (loss) (1) 3 — 2 (1) 10 — 9 Purchases, issuances and settlements (35) 99 (2) 62 (88) 126 (2) 37 Transfers in/(out) of Level 3 and reclassification of securities in/(out) of investment categories — — — — — — — — Ending balance of fixed maturities $ 589 $ 1,442 $ 14 $ 2,045 $ 589 $ 1,442 $ 14 $ 2,045 The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date $ 3 $ — $ — $ 3 $ 4 $ — $ — $ 4 (Some amounts may not reconcile due to rounding.) Total Fixed Maturities - Available for Sale Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 (Dollars in millions) Corporate Asset-Backed Foreign Total Corporate Asset-Backed Foreign Total Beginning balance of fixed maturities $ 709 $ 1,020 $ 16 $ 1,745 $ 715 $ 994 $ 16 $ 1,725 Total gains or (losses) (realized/unrealized) Included in earnings 1 — — 1 2 — — 2 Included in other comprehensive income (loss) (2) (8) — (9) (6) 10 — 4 Purchases, issuances and settlements 3 103 — 105 — 111 — 111 Transfers in/(out) of Level 3 and reclassification of securities in/(out) of investment categories — — — — — — — — Ending balance of fixed maturities $ 711 $ 1,115 $ 16 $ 1,842 $ 711 $ 1,115 $ 16 $ 1,842 The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date $ — $ — $ — $ — $ — $ — $ — $ — (Some amounts may not reconcile due to rounding.) There were no transfers of assets in/(out) of Level 3 for the three and six months ended June 30, 2024. Financial Instruments Disclosed, But Not Reported, at Fair Value Certain financial instruments disclosed, but not reported, at fair value are excluded from the fair value hierarchy tables above. Fair values and valuation hierarchy of fixed maturity securities – held to maturity, senior notes and long-term subordinated notes can be found within Notes 3, 8 and 9, respectively. Short-term investments are stated at cost, which approximates fair value. 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 investments in COLI policies are recorded at their cash surrender value and are therefore not required to be included in the tables above. See Note 3 of the Notes to these Consolidated Financial Statements for details of investments in COLI policies. In addition, $260 million and $274 million of investments within other invested assets on the consolidated balance sheets as of June 30, 2024 and December 31, 2023, respectively, are not included within the fair value hierarchy tables, as the assets are measured at NAV as a practical expedient to determine fair value. |
RESERVE FOR LOSSES AND LAE
RESERVE FOR LOSSES AND LAE | 6 Months Ended |
Jun. 30, 2024 | |
Insurance [Abstract] | |
RESERVE FOR LOSSES AND LAE | RESERVE FOR LOSSES AND LAE Activity in the reserve for losses and loss adjustment expenses (“LAE”) is summarized for the periods indicated: Six Months Ended 2024 2023 (Dollars in millions) Gross reserves beginning of period $ 24,604 $ 22,065 Less reinsurance recoverables on unpaid losses (2,098) (2,105) Net reserves beginning of period 22,506 19,960 Incurred related to: Current year 4,548 3,927 Prior years — — Total incurred losses and LAE 4,548 3,927 Paid related to: Current year 1,068 1,307 Prior years 2,145 1,515 Total paid losses and LAE 3,213 2,822 Foreign exchange/translation adjustment (139) 165 Net reserves end of period 23,702 21,229 Plus reinsurance recoverables on unpaid losses 2,151 2,175 Gross reserves end of period $ 25,853 $ 23,405 (Some amounts may not reconcile due to rounding.) Current year incurred losses were $4.5 billion and $3.9 billion for the six months ended June 30, 2024 and 2023, respectively. Gross and net reserves increased for the six months ended June 30, 2024, reflecting an increase in underlying exposure due to earned premium growth, year over year, amounting to approximately $528 million |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2024 | |
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 U.S., Bermuda and Ireland offices, as well as, through branches in Canada, Singapore, the United Kingdom (“UK”) and Switzerland. The Insurance operation writes property and casualty insurance directly and through brokers, including for surplus lines, and general agents within the U.S., Bermuda, Canada, Europe, Singapore and South America through its offices in the U.S., Australia, Bermuda, Canada, Chile, Colombia, Mexico, Singapore, the UK, Ireland, and branches located in the UK, the Netherlands, France, Germany and Spain. 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. The Company measures its underwriting results using ratios, in particular, loss, commission and brokerage and other underwriting expense ratios, which, respectively, divide incurred losses, commissions and brokerage and other underwriting expenses by premiums earned. Management has determined that these measures are appropriate and align with how the business is managed. We continue to evaluate our segments as our business evolves and may further refine our segments and financial performance measures. The following tables present the underwriting results for the operating segments for the periods indicated: Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 (Dollars in millions) Reinsurance Insurance Total Reinsurance Insurance Total Gross written premiums $ 3,209 $ 1,515 $ 4,725 $ 6,385 $ 2,752 $ 9,136 Net written premiums 3,033 1,051 4,084 5,975 2,009 7,984 Premiums earned $ 2,731 $ 962 $ 3,693 $ 5,459 $ 1,885 $ 7,345 Incurred losses and LAE 1,684 628 2,311 3,325 1,223 4,548 Commission and brokerage 672 117 790 1,343 228 1,571 Other underwriting expenses 72 162 234 142 316 458 Underwriting gain (loss) $ 303 $ 54 $ 358 $ 649 $ 118 $ 767 Net investment income 528 985 Net gains (losses) on investments (17) (24) Corporate expenses (22) (44) Interest, fee and bond issue cost amortization expense (37) (75) Other income (expense) 23 54 Income (loss) before taxes $ 832 $ 1,664 (Some amounts may not reconcile due to rounding.) Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 (Dollars in millions) Reinsurance Insurance Total Reinsurance Insurance Total Gross written premiums $ 2,747 $ 1,433 $ 4,180 $ 5,368 $ 2,555 $ 7,923 Net written premiums 2,621 1,053 3,674 5,059 1,944 7,003 Premiums earned $ 2,364 $ 888 $ 3,251 $ 4,590 $ 1,762 $ 6,352 Incurred losses and LAE 1,389 572 1,960 2,790 1,137 3,927 Commission and brokerage 579 107 686 1,135 212 1,347 Other underwriting expenses 61 143 205 124 280 405 Underwriting gain (loss) $ 335 $ 66 $ 401 $ 540 $ 133 $ 673 Net investment income 357 617 Net gains (losses) on investments 5 10 Corporate expenses (17) (36) Interest, fee and bond issue cost amortization expense (33) (65) Other income (expense) 38 (42) Income (loss) before taxes $ 750 $ 1,157 (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. |
CREDIT FACILITIES
CREDIT FACILITIES | 6 Months Ended |
Jun. 30, 2024 | |
Line of Credit Facility [Abstract] | |
CREDIT FACILITIES | CREDIT FACILITIES The Company has multiple active committed letter of credit facilities with a total commitment of up to $1.7 billion as of June 30, 2024. The Company also has additional uncommitted letter of credit facilities of up to $240 million which may be accessible via written request and corresponding authorization from the applicable lender. There is no guarantee the uncommitted capacity will be available to us on a future date. The terms and outstanding amounts for each facility are discussed below. See Note 10 for collateral posted related to secured letters of credit. Bermuda Re Wells Fargo Bilateral Letter of Credit Facility Effective February 23, 2021, Everest Reinsurance (Bermuda) Ltd. (“Bermuda Re”) entered into a letter of credit issuance facility with Wells Fargo, referred to as the “Bermuda Re Wells Fargo Bilateral Letter of Credit Facility.” The Bermuda Re Wells Fargo Bilateral Letter of Credit Facility originally provided for the issuance of up to $50 million of secured letters of credit. Effective May 5, 2021, the agreement was amended to provide for the issuance of up to $500 million of secured letters of credit. Effective June 10, 2024, the agreement was amended to extend the availability of committed issuance for one year. The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At June 30, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Bermuda Re Wells Fargo Bank Bilateral LOC Facility $ 500 $ 477 12/31/2024 $ 500 $ 97 6/24/2024 — 71 6/28/2024 — 318 12/31/2024 — — $ 500 $ 477 $ 500 $ 486 (Some amounts may not reconcile due to rounding.) Bermuda Re Citibank Letter of Credit Facility Effective August 9, 2021, Bermuda Re entered into a letter of credit issuance facility with Citibank N.A., referred to as the “Bermuda Re Citibank Letter of Credit Facility”. The Bermuda Re Citibank Letter of Credit Facility provides for the committed issuance of up to $230 million of secured letters of credit. In addition, the facility provided for the uncommitted issuance of up the $140 million, which may be accessible via written request by the Company and corresponding authorization from Citibank N.A. Effective December 13, 2023, the agreement was amended to extend the availability of committed issuance for an additional two years. The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At June 30, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Bermuda Re Citibank LOC Facility- Committed $ 230 $ 197 12/31/2024 $ 230 $ — 1/21/2024 — 1/21/2025 4 2/29/2024 4 2/28/2025 1 3/1/2024 2 3/1/2025 3 9/23/2024 1 3/15/2025 1 12/1/2024 1 8/15/2025 — 12/16/2024 3 9/23/2025 — 12/20/2024 1 12/1/2025 217 12/31/2024 — 12/16/2025 1 8/15/2025 — 12/20/2025 4 12/31/2025 Bermuda Re Citibank LOC Facility - Uncommitted 140 106 12/31/2024 140 105 12/31/2024 — 3/30/2028 7 12/30/2027 7 6/30/2028 Total Citibank Bilateral Agreement $ 370 $ 326 $ 370 $ 340 (Some amounts may not reconcile due to rounding.) Bermuda Re Bayerische Landesbank Bilateral Secured Credit Facility Effective August 27, 2021, Bermuda Re entered into a letter of credit issuance facility with Bayerische Landesbank, an agreement referred to as the “Bermuda Re Bayerische Landesbank Bilateral Secured Credit Facility”. The Bermuda Re Bayerische Landesbank Bilateral Secured Credit Facility provides for the committed issuance of up to $200 million of secured letters of credit. The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At June 30, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Bermuda Re Bayerische Landesbank Bilateral Secured Credit Facility - Committed $ 200 $ 188 12/31/2024 $ 200 $ 192 12/31/2024 (Some amounts may not reconcile due to rounding.) Bermuda Re Bayerische Landesbank Bilateral Unsecured Letter of Credit Facility Effective December 30, 2022, Bermuda Re entered into a new additional letter of credit issuance facility with Bayerische Landesbank, New York Branch, referred to as the “Bermuda Re Bayerische Landesbank Bilateral Unsecured Letter of Credit Facility”. The Bermuda Re Bayerische Landesbank Bilateral Unsecured Letter of Credit Facility provides for the committed issuance of up to $150 million of unsecured letters of credit and is fully and unconditionally guaranteed by Group, as Parent Guarantor. The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At June 30, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Bermuda Re Bayerische Landesbank Bilateral Unsecured Credit Facility - Committed $ 150 $ 150 12/31/2024 $ 150 $ 150 12/31/2024 (Some amounts may not reconcile due to rounding.) Bermuda Re Lloyd’s Bank Letter of Credit Facility Effective December 27, 2023, Bermuda Re entered into an amended and restated letter of credit issuance facility with Lloyd’s Bank Corporate Markets PLC, to add Everest Insurance (Ireland), dac (“Ireland Insurance”) as an account party with access to a $15 million sub-limit for the issuance of letters of credit, an agreement referred to as the “Bermuda Re Lloyd’s Bank Letter of Credit Facility”, which superseded the previous letter of credit issuance facility with Lloyd’s Bank that was effective August 18, 2023. The Bermuda Re Lloyd’s Bank Letter of Credit Facility provides for the committed issuance of up to $250 million of unsecured letters of credit and is fully and unconditionally guaranteed by Group, as Parent Guarantor. The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At June 30, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Bermuda Re Lloyd's Bank Credit Facility-Committed $ 250 $ 216 12/31/2024 $ 250 $ 235 12/31/2024 (Some amounts may not reconcile due to rounding.) Bermuda Re Barclays Bank Credit Facility Effective November 3, 2021, Bermuda Re entered into a letter of credit issuance facility with Barclays Bank PLC, an agreement referred to as the “Bermuda Re Barclays Credit Facility”. The Bermuda Re Barclays Credit Facility provides for the committed issuance of up to $200 million of secured letters of credit. The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At June 30, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Bermuda Re Barclays Bilateral Letter of Credit Facility $ 200 $ 150 12/30/2024 $ 200 $ 168 12/30/2024 14 12/31/2024 14 12/31/2024 Total Bermuda Re Barclays Bilateral Letter of Credit Facility $ 200 $ 164 $ 200 $ 182 Bermuda Re Nordea Bank Letter of Credit Facility Effective November 21, 2022, Bermuda Re entered into a letter of credit issuance facility with Nordea Bank ABP, New York Branch, referred to as the “Nordea Bank Letter of Credit Facility”. The Bermuda Re Nordea Bank Letter of Credit Facility provides for the committed issuance of up to $200 million of unsecured letters of credit, and subject to credit approval, uncommitted issuance of $100 million for a maximum total facility amount of $300 million. The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At June 30, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Nordea Bank Letter of Credit Facility - Committed $ 200 $ 200 12/31/2024 $ 200 $ 200 12/31/2024 Nordea Bank Letter of Credit Facility - Uncommitted 100 100 12/31/2024 100 100 12/31/2024 Total Nordea Bank ABP, NY LOC Facility $ 300 $ 300 $ 300 $ 300 (Some amounts may not reconcile due to rounding.) Federal Home Loan Bank Membership Everest Reinsurance Company (“Everest Re”) is a member of the Federal Home Loan Bank of New York (“FHLBNY”), which allows Everest Re to borrow up to 10% of its statutory admitted assets. As of June 30, 2024, Everest Re had statutory admitted assets of approximately $28.0 billion which provides borrowing capacity of up to approximately $2.8 billion. As of June 30, 2024, Everest Re had $819 million of borrowings outstanding, all of which expire in 2024. Everest Re incurred interest expense of $11 million and $7 million for the three months ended June 30, 2024 and 2023, respectively. Everest Re incurred interest expense of $22 million and $13 million for the six months ended June 30, 2024 and 2023, respectively. The FHLBNY membership agreement requires that 4.5% of borrowed funds be used to acquire additional membership stock. Additionally, the FHLBNY membership agreement requires that members must have sufficient qualifying collateral pledged. As of June 30, 2024, Everest Re had $1.1 billion of collateral pledged. The table below displays Everest Reinsurance Holdings’ (“Holdings”) outstanding senior notes (the “Senior Notes”). Fair value is based on quoted market prices, but due to limited trading activity, the Senior Notes are considered Level 2 in the fair value hierarchy. June 30, 2024 December 31, 2023 (Dollars in millions) Date Issued Date Due Principal Consolidated Balance Fair Value Consolidated Balance Fair Value 4.868% Senior notes 6/5/2014 6/1/2044 $ 400 $ 398 $ 352 $ 398 $ 369 3.5% Senior notes 10/7/2020 10/15/2050 1,000 981 674 981 742 3.125% Senior notes 10/4/2021 10/15/2052 1,000 970 620 970 688 $ 2,400 $ 2,349 $ 1,646 $ 2,349 $ 1,799 (Some amounts may not reconcile due to rounding.) Interest expense incurred in connection with the Senior Notes is as follows for the periods indicated: Three Months Ended Six Months Ended (Dollars in millions) Interest Paid Payable Dates 2024 2023 2024 2023 4.868% Senior notes semi-annually June 1/December 1 $ 5 $ 5 $ 10 $ 10 3.5% Senior notes semi-annually April 15/October 15 9 9 18 18 3.125% Senior notes semi-annually April 15/October 15 8 8 16 16 $ 22 $ 22 $ 43 $ 43 (Some amounts may not reconcile due to rounding.) |
SENIOR NOTES
SENIOR NOTES | 6 Months Ended |
Jun. 30, 2024 | |
Senior Notes [Abstract] | |
SENIOR NOTES | CREDIT FACILITIES The Company has multiple active committed letter of credit facilities with a total commitment of up to $1.7 billion as of June 30, 2024. The Company also has additional uncommitted letter of credit facilities of up to $240 million which may be accessible via written request and corresponding authorization from the applicable lender. There is no guarantee the uncommitted capacity will be available to us on a future date. The terms and outstanding amounts for each facility are discussed below. See Note 10 for collateral posted related to secured letters of credit. Bermuda Re Wells Fargo Bilateral Letter of Credit Facility Effective February 23, 2021, Everest Reinsurance (Bermuda) Ltd. (“Bermuda Re”) entered into a letter of credit issuance facility with Wells Fargo, referred to as the “Bermuda Re Wells Fargo Bilateral Letter of Credit Facility.” The Bermuda Re Wells Fargo Bilateral Letter of Credit Facility originally provided for the issuance of up to $50 million of secured letters of credit. Effective May 5, 2021, the agreement was amended to provide for the issuance of up to $500 million of secured letters of credit. Effective June 10, 2024, the agreement was amended to extend the availability of committed issuance for one year. The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At June 30, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Bermuda Re Wells Fargo Bank Bilateral LOC Facility $ 500 $ 477 12/31/2024 $ 500 $ 97 6/24/2024 — 71 6/28/2024 — 318 12/31/2024 — — $ 500 $ 477 $ 500 $ 486 (Some amounts may not reconcile due to rounding.) Bermuda Re Citibank Letter of Credit Facility Effective August 9, 2021, Bermuda Re entered into a letter of credit issuance facility with Citibank N.A., referred to as the “Bermuda Re Citibank Letter of Credit Facility”. The Bermuda Re Citibank Letter of Credit Facility provides for the committed issuance of up to $230 million of secured letters of credit. In addition, the facility provided for the uncommitted issuance of up the $140 million, which may be accessible via written request by the Company and corresponding authorization from Citibank N.A. Effective December 13, 2023, the agreement was amended to extend the availability of committed issuance for an additional two years. The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At June 30, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Bermuda Re Citibank LOC Facility- Committed $ 230 $ 197 12/31/2024 $ 230 $ — 1/21/2024 — 1/21/2025 4 2/29/2024 4 2/28/2025 1 3/1/2024 2 3/1/2025 3 9/23/2024 1 3/15/2025 1 12/1/2024 1 8/15/2025 — 12/16/2024 3 9/23/2025 — 12/20/2024 1 12/1/2025 217 12/31/2024 — 12/16/2025 1 8/15/2025 — 12/20/2025 4 12/31/2025 Bermuda Re Citibank LOC Facility - Uncommitted 140 106 12/31/2024 140 105 12/31/2024 — 3/30/2028 7 12/30/2027 7 6/30/2028 Total Citibank Bilateral Agreement $ 370 $ 326 $ 370 $ 340 (Some amounts may not reconcile due to rounding.) Bermuda Re Bayerische Landesbank Bilateral Secured Credit Facility Effective August 27, 2021, Bermuda Re entered into a letter of credit issuance facility with Bayerische Landesbank, an agreement referred to as the “Bermuda Re Bayerische Landesbank Bilateral Secured Credit Facility”. The Bermuda Re Bayerische Landesbank Bilateral Secured Credit Facility provides for the committed issuance of up to $200 million of secured letters of credit. The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At June 30, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Bermuda Re Bayerische Landesbank Bilateral Secured Credit Facility - Committed $ 200 $ 188 12/31/2024 $ 200 $ 192 12/31/2024 (Some amounts may not reconcile due to rounding.) Bermuda Re Bayerische Landesbank Bilateral Unsecured Letter of Credit Facility Effective December 30, 2022, Bermuda Re entered into a new additional letter of credit issuance facility with Bayerische Landesbank, New York Branch, referred to as the “Bermuda Re Bayerische Landesbank Bilateral Unsecured Letter of Credit Facility”. The Bermuda Re Bayerische Landesbank Bilateral Unsecured Letter of Credit Facility provides for the committed issuance of up to $150 million of unsecured letters of credit and is fully and unconditionally guaranteed by Group, as Parent Guarantor. The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At June 30, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Bermuda Re Bayerische Landesbank Bilateral Unsecured Credit Facility - Committed $ 150 $ 150 12/31/2024 $ 150 $ 150 12/31/2024 (Some amounts may not reconcile due to rounding.) Bermuda Re Lloyd’s Bank Letter of Credit Facility Effective December 27, 2023, Bermuda Re entered into an amended and restated letter of credit issuance facility with Lloyd’s Bank Corporate Markets PLC, to add Everest Insurance (Ireland), dac (“Ireland Insurance”) as an account party with access to a $15 million sub-limit for the issuance of letters of credit, an agreement referred to as the “Bermuda Re Lloyd’s Bank Letter of Credit Facility”, which superseded the previous letter of credit issuance facility with Lloyd’s Bank that was effective August 18, 2023. The Bermuda Re Lloyd’s Bank Letter of Credit Facility provides for the committed issuance of up to $250 million of unsecured letters of credit and is fully and unconditionally guaranteed by Group, as Parent Guarantor. The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At June 30, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Bermuda Re Lloyd's Bank Credit Facility-Committed $ 250 $ 216 12/31/2024 $ 250 $ 235 12/31/2024 (Some amounts may not reconcile due to rounding.) Bermuda Re Barclays Bank Credit Facility Effective November 3, 2021, Bermuda Re entered into a letter of credit issuance facility with Barclays Bank PLC, an agreement referred to as the “Bermuda Re Barclays Credit Facility”. The Bermuda Re Barclays Credit Facility provides for the committed issuance of up to $200 million of secured letters of credit. The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At June 30, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Bermuda Re Barclays Bilateral Letter of Credit Facility $ 200 $ 150 12/30/2024 $ 200 $ 168 12/30/2024 14 12/31/2024 14 12/31/2024 Total Bermuda Re Barclays Bilateral Letter of Credit Facility $ 200 $ 164 $ 200 $ 182 Bermuda Re Nordea Bank Letter of Credit Facility Effective November 21, 2022, Bermuda Re entered into a letter of credit issuance facility with Nordea Bank ABP, New York Branch, referred to as the “Nordea Bank Letter of Credit Facility”. The Bermuda Re Nordea Bank Letter of Credit Facility provides for the committed issuance of up to $200 million of unsecured letters of credit, and subject to credit approval, uncommitted issuance of $100 million for a maximum total facility amount of $300 million. The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At June 30, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Nordea Bank Letter of Credit Facility - Committed $ 200 $ 200 12/31/2024 $ 200 $ 200 12/31/2024 Nordea Bank Letter of Credit Facility - Uncommitted 100 100 12/31/2024 100 100 12/31/2024 Total Nordea Bank ABP, NY LOC Facility $ 300 $ 300 $ 300 $ 300 (Some amounts may not reconcile due to rounding.) Federal Home Loan Bank Membership Everest Reinsurance Company (“Everest Re”) is a member of the Federal Home Loan Bank of New York (“FHLBNY”), which allows Everest Re to borrow up to 10% of its statutory admitted assets. As of June 30, 2024, Everest Re had statutory admitted assets of approximately $28.0 billion which provides borrowing capacity of up to approximately $2.8 billion. As of June 30, 2024, Everest Re had $819 million of borrowings outstanding, all of which expire in 2024. Everest Re incurred interest expense of $11 million and $7 million for the three months ended June 30, 2024 and 2023, respectively. Everest Re incurred interest expense of $22 million and $13 million for the six months ended June 30, 2024 and 2023, respectively. The FHLBNY membership agreement requires that 4.5% of borrowed funds be used to acquire additional membership stock. Additionally, the FHLBNY membership agreement requires that members must have sufficient qualifying collateral pledged. As of June 30, 2024, Everest Re had $1.1 billion of collateral pledged. The table below displays Everest Reinsurance Holdings’ (“Holdings”) outstanding senior notes (the “Senior Notes”). Fair value is based on quoted market prices, but due to limited trading activity, the Senior Notes are considered Level 2 in the fair value hierarchy. June 30, 2024 December 31, 2023 (Dollars in millions) Date Issued Date Due Principal Consolidated Balance Fair Value Consolidated Balance Fair Value 4.868% Senior notes 6/5/2014 6/1/2044 $ 400 $ 398 $ 352 $ 398 $ 369 3.5% Senior notes 10/7/2020 10/15/2050 1,000 981 674 981 742 3.125% Senior notes 10/4/2021 10/15/2052 1,000 970 620 970 688 $ 2,400 $ 2,349 $ 1,646 $ 2,349 $ 1,799 (Some amounts may not reconcile due to rounding.) Interest expense incurred in connection with the Senior Notes is as follows for the periods indicated: Three Months Ended Six Months Ended (Dollars in millions) Interest Paid Payable Dates 2024 2023 2024 2023 4.868% Senior notes semi-annually June 1/December 1 $ 5 $ 5 $ 10 $ 10 3.5% Senior notes semi-annually April 15/October 15 9 9 18 18 3.125% Senior notes semi-annually April 15/October 15 8 8 16 16 $ 22 $ 22 $ 43 $ 43 (Some amounts may not reconcile due to rounding.) |
LONG-TERM SUBORDINATED NOTES
LONG-TERM SUBORDINATED NOTES | 6 Months Ended |
Jun. 30, 2024 | |
Long-Term Debt, Unclassified [Abstract] | |
LONG-TERM SUBORDINATED NOTES | LONG-TERM SUBORDINATED NOTES The table below displays Holdings’ outstanding fixed to floating rate long-term subordinated notes (“Subordinated Notes Issued 2007”). Fair value is based on quoted market prices, but due to limited trading activity, these subordinated notes are considered Level 2 in the fair value hierarchy. Maturity Date June 30, 2024 December 31, 2023 (Dollars in millions) Date Issued Original Scheduled Final Consolidated Balance Fair Value Consolidated Balance Fair Value Subordinated Notes Issued 2007 4/26/2007 $ 400 5/15/2037 5/1/2067 $ 218 $ 214 $ 218 $ 187 During the fixed rate interest period from May 3, 2007 through May 14, 2017, interest was at the annual rate of 6.6%, payable semi-annually in arrears on November 15 and May 15 of each year, commencing on November 15, 2007. During the floating rate interest period from May 15, 2017 through maturity, interest will be based on the 3 month LIBOR plus 238.5 basis points, reset quarterly, payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, subject to Holdings’ right to defer interest on one or more occasions for up to ten Holdings may redeem the Subordinated Notes Issued 2007 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 the 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 Issued 2007. The Company’s Senior Notes are the Company’s long-term indebtedness that rank senior to the Subordinated Notes Issued 2007. Interest expense incurred in connection with these long-term subordinated notes is as follows for the periods indicated: Three Months Ended Six Months Ended (Dollars in millions) 2024 2023 2024 2023 Interest expense incurred $ 4 $ 4 $ 9 $ 8 |
COLLATERALIZED REINSURANCE, TRU
COLLATERALIZED REINSURANCE, TRUST AGREEMENTS AND OTHER RESTRICTED ASSETS | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, At December 31, (Dollars in millions) 2024 2023 Collateral in trust for non-affiliated agreements (1) $ 3,202 $ 3,208 Collateral for secured letter of credit facilities 1,370 1,438 Collateral for FHLB borrowings 1,051 1,077 Securities on deposit with or regulated by government authorities 1,397 1,447 Funds at Lloyd's 460 538 Funds held by reinsureds 1,189 1,135 Total restricted assets 8,669 8,843 (1) At June 30, 2024 and December 31, 2023, the total amount on deposit in trust accounts includes $199 million and $243 million of restricted cash respectively. The Company reinsures some of its catastrophe exposures with the segregated accounts of subsidiary Mt. Logan Re, Ltd. (“Mt. Logan Re”). Mt. Logan Re is a collateralized insurer registered in Bermuda and 100% of the voting common shares are owned by Group. Each segregated account invests predominantly in a diversified set of catastrophe exposures, diversified by risk/peril and across different geographic regions globally. The following table summarizes the premiums and losses that are ceded by the Company to Mt. Logan Re segregated accounts and assumed by the Company from Mt. Logan Re segregated accounts. Three Months Ended Six Months Ended Mt. Logan Re Segregated Accounts 2024 2023 2024 2023 (Dollars in millions) Ceded written premiums $ 82 $ 46 $ 169 $ 99 Ceded earned premiums 94 52 180 98 Ceded losses and LAE 26 16 64 53 Assumed written premiums 1 1 3 1 Assumed earned premiums 1 1 3 1 Assumed losses and LAE — — — — The Company entered into various collateralized reinsurance agreements with Kilimanjaro Re Limited (“Kilimanjaro”), a Bermuda-based special purpose reinsurer, to provide the Company with catastrophe reinsurance coverage. These agreements are multi-year reinsurance contracts which cover named storm and earthquake events. The table below summarizes the various agreements. (Dollars in millions) Class Description Effective Date Expiration Date Limit Coverage Basis Series 2019-1 Class A-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 Series 2024-1 Class A US, Canada, Puerto Rico – Named Storm and Earthquake Events 6/27/2024 6/30/2028 75 Occurrence Series 2024-1 Class B US, Canada, Puerto Rico – Named Storm and Earthquake Events 6/27/2024 6/30/2028 125 Occurrence Total available limit as of June 30, 2024 $ 1,575 Recoveries under these collateralized reinsurance agreements with Kilimanjaro are primarily dependent on estimated industry-level insured losses from covered events, as well as the geographic location of the events. The estimated industry-level of insured losses is obtained from published estimates by an independent recognized authority on insured property losses. As of June 30, 2024, the Company has up to $350 million of catastrophe bond protection (“CAT Bond”) that attaches at a $48.1 billion Property Claims Services (“PCS”) Industry loss threshold. This recovery would be recognized on a pro-rata basis up to a $63.8 billion PCS Industry loss level. As a result of Hurricane Ian, PCS’s current industry estimate of $48.3 billion issued in June 2024 exceeds the attachment point. The current estimated recovery under the CAT Bond is not material. Kilimanjaro has financed the various property catastrophe reinsurance coverages by issuing catastrophe bonds to unrelated, external investors. The proceeds from the issuance of the catastrophe bonds are held in reinsurance trusts throughout the duration of the applicable reinsurance agreements and invested solely in U.S. government money market funds with a rating of at least “AAAm” by Standard & Poor’s. The catastrophe bonds’ issue dates, maturity dates and amounts correspond to the reinsurance agreements listed above. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES In the ordinary course of business, the Company is involved in lawsuits, arbitrations and other formal and informal dispute resolution procedures, the outcomes of which will determine the Company’s rights and obligations under insurance and reinsurance agreements. In some disputes, the Company seeks to enforce its rights under an agreement or to collect funds owing to it. In other matters, the Company is resisting attempts by others to collect funds or enforce alleged rights. These disputes arise from time to time and are ultimately resolved through both informal and formal means, including negotiated resolution, arbitration and litigation. In all such matters, the Company believes that its positions are legally and commercially reasonable. The Company considers the statuses of these proceedings when determining its reserves for unpaid loss and LAE. Aside from litigation and arbitrations related to these insurance and reinsurance agreements, the Company is not a party to any other material litigation or arbitration. |
OTHER COMPREHENSIVE INCOME (LOS
OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2024 | |
Other Comprehensive Income (Loss), Tax [Abstract] | |
OTHER COMPREHENSIVE INCOME (LOSS) | OTHER COMPREHENSIVE INCOME (LOSS) The following tables present the components of comprehensive income (loss) in the consolidated statements of operations for the periods indicated: Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 (Dollars in millions) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax URA(D) on securities - non-credit related $ (101) $ 32 $ (70) $ (293) $ 66 $ (227) Reclassification of net realized losses (gains) included in net income (loss) 11 (2) 9 17 (3) 14 Foreign currency translation adjustments (2) 2 — (45) 7 (38) Reclassification of benefit plan liability amortization included in net income (loss) 31 (6) 24 31 (7) 25 Total other comprehensive income (loss) $ (61) $ 25 $ (36) $ (290) $ 63 $ (227) (Some amounts may not reconcile due to rounding) Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 (Dollars in millions) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax URA(D) on securities - non-credit related $ (199) $ 30 $ (169) $ 75 $ 2 $ 77 Reclassification of net realized losses (gains) included in net income (loss) 4 (2) 2 10 (4) 5 Foreign currency translation adjustments (2) 1 (1) 31 (1) 30 Reclassification of benefit plan liability amortization included in net income (loss) 1 — — 1 — 1 Total other comprehensive income (loss) $ (196) $ 29 $ (168) $ 116 $ (3) $ 113 (Some amounts may not reconcile due to rounding) The following table presents details of the amounts reclassified from AOCI for the periods indicated: Three Months Ended Six Months Ended Affected line item within the statements of operations and comprehensive income (loss) AOCI component 2024 2023 2024 2023 (Dollars in millions) URA(D) on securities $ 11 $ 4 $ 17 $ 10 Other net realized capital gains (losses) (2) (2) (3) (4) Income tax expense (benefit) $ 9 $ 2 $ 14 $ 5 Net income (loss) Benefit plan net gain (loss) $ 31 $ 1 $ 31 $ 1 Other underwriting expenses (6) — (7) — Income tax expense (benefit) $ 24 $ 1 $ 25 $ 1 Net income (loss) (Some amounts may not reconcile due to rounding) The following table presents the components of accumulated other comprehensive income (loss), net of tax, in the consolidated balance sheets for the periods indicated: Three Months Ended Six Months Ended (Dollars in millions) 2024 2023 2024 2023 Beginning balance of URA(D) on securities $ (876) $ (1,460) $ (723) $ (1,709) Current period change in URA(D) of investments - non-credit related (60) (167) (213) 82 Ending balance of URA(D) on securities (936) (1,627) (936) (1,627) Beginning balance of foreign currency translation adjustments (233) (223) (195) (254) Current period change in foreign currency translation adjustments — (1) (38) 30 Ending balance of foreign currency translation adjustments (233) (224) (233) (224) Beginning balance of benefit plan net gain (loss) (16) (33) (16) (33) Current period change in benefit plan net gain (loss) 24 — 25 1 Ending balance of benefit plan net gain (loss) 8 (32) 8 (32) Ending balance of accumulated other comprehensive income (loss) $ (1,160) $ (1,883) $ (1,160) $ (1,883) (Some amounts may not reconcile due to rounding.) |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
SHARE-BASED COMPENSATION PLANS | SHARE-BASED COMPENSATION PLANS During the three months ended June 30, 2024, a total of 4,016 shares of restricted stock were granted on May 15, 2024, with a fair value of $377.80 per share. During the three months ended June 30, 2023, a total of 925 shares of restricted stock were granted on May 18, 2023, with a fair value of $372.91 per share. For the six months ended June 30, 2024, a total of 218,959 shares of restricted stock were granted as follows: 207,839, 7,104 and 4,016 of shares of restricted stock were granted on February 28, 2024, February 29, 2024 and May 15, 2024, respectively. The fair value per share of each restricted stock award was $369.52, $367.04 and $377.80, respectively. Additionally, 18,713 performance share unit awards were granted on February 28, 2024, with a fair value of $369.52 per unit. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE Basic earnings per share are calculated by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per share reflect the potential dilution that would occur if options granted under various share-based compensation plans were exercised resulting in the issuance of common shares that would participate in the earnings of the entity. Net income (loss) per common share has been computed as shown below, based upon weighted average common basic and dilutive shares outstanding. Three Months Ended Six Months Ended (Dollars in millions, except per share amounts) 2024 2023 2024 2023 Net income (loss) per share: Numerator Net income (loss) $ 724 $ 670 $ 1,457 $ 1,035 Less: dividends declared - common shares and unvested common shares (87) (72) (163) (136) Undistributed earnings 637 599 1,294 899 Percentage allocated to common shareholders (1) 98.8% 98.8% 98.8% 98.8% 630 591 1,279 888 Add: dividends declared - common shareholders 86 71 161 135 Numerator for basic and diluted earnings per common share $ 715 $ 662 $ 1,440 $ 1,022 Denominator Denominator for basic earnings per weighted-average common shares 42.8 40.7 42.9 39.7 Effect of dilutive securities: Options — — — — Denominator for diluted earnings per adjusted weighted-average common shares 42.8 40.7 42.9 39.7 Per common share net income (loss) Basic $ 16.70 $ 16.26 $ 33.57 $ 25.74 Diluted $ 16.70 $ 16.26 $ 33.57 $ 25.74 (1) Basic weighted - average common shares outstanding 42.8 40.7 42.9 39.7 Basic weighted - average common shares outstanding and unvested common shares expected to vest 43.4 41.2 43.4 40.2 Percentage allocated to common shareholders 98.8% 98.8% 98.8% 98.8% (Some amounts may not reconcile due to rounding.) |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES With the assent of the governor on December 27, 2023, the Bermuda Corporate Income Tax Act of 2023 (“The 2023 Act”) became law. Beginning in 2025, a 15% corporate income tax will be applicable to Bermuda businesses that are part of multinational enterprise groups with annual revenue of €750 million or more. Group’s Bermuda entities will be subject to the new corporate income tax. The Company has evaluated The 2023 Act and has recorded $578 million of net deferred income tax benefits as of December 31, 2023. The net deferred income tax benefits relate primarily to a default provision in the law which allows for what is called an “Economic Transition Adjustment” (“ETA”). The ETA allowed companies to establish deferred tax assets or liabilities related to the revaluation of intangible assets, excluding goodwill and their other assets and liabilities, based on fair value as of September 30, 2023. All of the income of Group's non-Bermuda subsidiaries is subject to the applicable federal, foreign, state and local taxes on corporations. Additionally, the income of the foreign branches of the Company's insurance operating companies is subject to various rates of income tax. Group's U.S. subsidiaries conduct business in and are subject to taxation in the U.S. Should the U.S. subsidiaries distribute current or accumulated earnings and profits in the form of dividends or otherwise, the Company would be subject to an accrual of 5% U.S. withholding tax. Currently, however, no withholding tax has been accrued with respect to such un-remitted earnings, as management has no intention of remitting them. The cumulative amount that would be subject to withholding tax, if distributed, is not practicable to compute. The provision for income taxes in the consolidated statement of operations and comprehensive income (loss) has been determined in accordance with the individual income of each entity and the respective applicable tax laws. The provision reflects the permanent differences between financial and taxable income relevant to each entity. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSThe Company has evaluated known recognized and non-recognized subsequent events. In July 2024, Hurricane Beryl impacted the southern half of the Caribbean and southern Texas. Due to the recency of this event, the Company is unable to estimate the magnitude of losses at this time. However, the Company does not expect loss exposure to be significant. No other material subsequent events or transactions have occurred that require recognition or disclosure in the financial statements. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net income (loss) | $ 724 | $ 670 | $ 1,457 | $ 1,035 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The unaudited consolidated financial statements of the Company as of June 30, 2024 and December 31, 2023 and for the three and six months ended June 30, 2024 and 2023 include all adjustments, consisting of normal recurring accruals, which, in the opinion of management, are necessary for a fair statement of the results on an interim basis. Certain financial information, which is normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), has been omitted since it is not required for interim reporting purposes. The December 31, 2023 consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The results for the three and six months ended June 30, 2024 and 2023 are not necessarily indicative of the results for a full year. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the years ended December 31, 2023, 2022 and 2021, included in the Company’s most recent Form 10-K filing. |
Voting and Variable Interest Entities | The Company consolidates the results of operations and financial position of all voting interest entities ("VOE") in which the Company has a controlling financial interest and all variable interest entities ("VIE") in which the Company is considered to be the primary beneficiary. The consolidation assessment, including the determination as to whether an entity qualifies as a VIE or VOE, depends on the facts and circumstances surrounding each entity. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities (and disclosure of contingent assets and liabilities) at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Ultimate actual results could differ, possibly materially, from those estimates. |
Consolidation | All intercompany accounts and transactions have been eliminated. |
Adoption of New Accounting Standards and Future Adoption of Recently Issued Accounting Standards | Adoption of New Accounting Standards The Company did not adopt any new accounting standards that had a material impact during the three and six months ended June 30, 2024. Future Adoption of Recently Issued Accounting Standards The Company assessed the adoption impacts of recently issued accounting standards that are effective after 2024 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 2024. There were no accounting standards identified, other than those directly referenced below, that are expected to have a material impact to Group. 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 | GAAP guidance regarding fair value measurements addresses how companies should measure fair value when they are required to use fair value measures for recognition or disclosure purposes under GAAP and provides a common definition of fair value to be used throughout GAAP. It defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly fashion between market participants at the measurement date. In addition, it establishes a three-level valuation hierarchy for the disclosure of fair value measurements. The valuation hierarchy is based on the transparency of inputs to the valuation of an asset or liability. The level in the hierarchy within which a given fair value measurement falls is determined based on the lowest level input that is significant to the measurement, with Level 1 being the highest priority and Level 3 being the lowest priority. The levels in the hierarchy are defined as follows: Level 1: Inputs to the valuation methodology are observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in an active market; Level 2: Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company’s fixed maturity and equity securities are 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. |
Fair Value of Financial Instruments | Equity securities denominated in U.S. currency with quoted prices in active markets for identical assets are categorized as Level 1, since the quoted prices are directly observable. Equity securities traded on foreign exchanges are categorized as Level 2 due to the added input of a foreign exchange conversion rate to determine fair value. The Company uses foreign currency exchange rates published by nationally recognized sources. Fixed maturity securities listed in the tables 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 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; and • Foreign corporate securities are comprised of global non-U.S. corporate bond issuances, and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source. |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 tables below present the amortized cost, allowance for credit losses, gross unrealized appreciation/(depreciation) (“URA(D)”) and fair value of fixed maturity securities - available for sale for the periods indicated: At June 30, 2024 (Dollars in millions) Amortized Allowance for Unrealized Unrealized Fair Fixed maturity securities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 1,070 $ — $ 3 $ (49) 1,024 Obligations of U.S. states and political subdivisions 114 — 1 (9) 105 Corporate Securities 8,297 (42) 70 (347) 7,979 Asset-backed Securities 5,317 — 27 (27) 5,317 Mortgage-backed securities Commercial 1,016 — 1 (83) 934 Agency Residential 5,025 — 22 (302) 4,745 Non-agency Residential 940 — 8 (5) 943 Foreign government securities 2,370 — 11 (140) 2,240 Foreign corporate securities 5,985 — 46 (287) 5,744 Total fixed maturity securities - available for sale $ 30,134 $ (42) $ 188 $ (1,249) $ 29,031 (Some amounts may not reconcile due to rounding.) At December 31, 2023 (Dollars in millions) Amortized Allowance for Unrealized Unrealized Fair Fixed maturity securities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 1,045 $ — $ 3 $ (52) $ 996 Obligations of U.S. states and political subdivisions 138 — 1 (11) 128 Corporate securities 7,587 (47) 135 (322) 7,353 Asset-backed securities 5,644 — 25 (51) 5,618 Mortgage-backed securities Commercial 1,091 — 1 (92) 1,000 Agency residential 4,869 — 55 (229) 4,695 Non-agency residential 431 — 14 (2) 443 Foreign government securities 2,042 — 33 (108) 1,967 Foreign corporate securities 5,720 (1) 92 (271) 5,540 Total fixed maturity securities - available for sale $ 28,568 $ (48) $ 358 $ (1,137) $ 27,740 (Some amounts may not reconcile due to rounding.) The following tables show amortized cost, allowance for credit losses, gross URA(D) and fair value of fixed maturity securities - held to maturity for the periods indicated: At June 30, 2024 (Dollars in millions) Amortized Allowance for Unrealized Unrealized Fair Fixed maturity securities - held to maturity Corporate Securities $ 173 $ (2) $ 5 $ (5) $ 171 Asset-backed Securities 517 (5) 5 (8) 509 Mortgage-backed securities Commercial 21 — — — 21 Foreign corporate securities 84 (1) 4 — 87 Total fixed maturity securities - held to maturity $ 796 (8) $ 14 $ (13) $ 788 (Some amounts may not reconcile due to rounding.) At December 31, 2023 (Dollars in millions) Amortized Allowance for Unrealized Unrealized Fair Fixed maturity securities - held to maturity Corporate Securities $ 150 $ (2) $ 1 $ (3) $ 146 Asset-backed Securities 609 (5) 4 (10) 597 Mortgage-backed securities Commercial 21 — — — 21 Foreign corporate securities 84 (1) 7 — 90 Total fixed maturity securities - held to maturity $ 864 $ (8) $ 12 $ (13) $ 854 (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 June 30, 2024 At December 31, 2023 (Dollars in millions) Amortized Fair Amortized Fair Fixed maturity securities – available for sale Due in one year or less $ 1,472 $ 1,439 $ 1,289 $ 1,261 Due after one year through five years 7,560 7,264 7,094 6,858 Due after five years through ten years 6,350 6,050 5,613 5,405 Due after ten years 2,454 2,339 2,537 2,460 Asset-backed securities 5,317 5,317 5,644 5,618 Mortgage-backed securities Commercial 1,016 934 1,091 1,000 Agency residential 5,025 4,745 4,869 4,695 Non-agency residential 940 943 431 443 Total fixed maturity securities - available for sale $ 30,134 $ 29,031 $ 28,568 $ 27,740 (Some amounts may not reconcile due to rounding.) The amortized cost and fair value of fixed maturity securities - held to maturity are shown in the following table by contractual maturity. As the stated maturity of such securities may not be indicative of actual maturities, the totals for mortgage-backed and asset-backed securities are shown separately. At June 30, 2024 At December 31, 2023 (Dollars in millions) Amortized Fair Amortized Fair Fixed maturity securities – held to maturity Due in one year or less $ 12 $ 12 $ 5 $ 5 Due after one year through five years 53 52 59 58 Due after five years through ten years 42 41 43 42 Due after ten years 151 154 127 131 Asset-backed securities 517 509 609 597 Mortgage-backed securities Commercial 21 21 21 21 Total fixed maturity securities - held to maturity $ 796 $ 788 $ 864 $ 854 (Some amounts may not reconcile due to rounding.) |
Schedule of Changes in Net Unrealized Appreciation (Depreciation) for the Company's Investments | The changes in net URA(D) for the Company’s investments are as follows: Three Months Ended Six Months Ended (Dollars in millions) 2024 2023 2024 2023 Increase (decrease) during the period between the fair value and cost of investments carried at fair value, and deferred taxes thereon: Fixed maturity securities - available for sale and short-term investments $ (90) $ (195) $ (276) $ 84 Change in URA(D), pre-tax (90) (195) (276) 84 Deferred tax benefit (expense) 30 28 63 (2) Change in URA(D), net of deferred taxes, included in shareholders’ equity $ (60) $ (167) $ (213) $ 82 (Some amounts may not reconcile due to rounding.) |
Schedule of Aggregate Fair Value and Gross Unrealized Depreciation of Fixed Maturity Securities 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 the individual securities had been in a continuous unrealized loss position for the periods indicated: Duration of Unrealized Loss at June 30, 2024 by Security Type Less than 12 months Greater than 12 months Total (Dollars in millions) Fair Value Gross Fair Value Gross Fair Value Gross Fixed maturity securities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 187 $ (4) $ 734 $ (44) $ 922 $ (49) Obligations of U.S. states and political subdivisions 5 — 64 (9) 69 (9) Corporate securities 2,331 (60) 2,868 (286) 5,199 (346) Asset-backed securities 341 (3) 607 (24) 948 (27) Mortgage-backed securities Commercial 194 (18) 694 (65) 888 (83) Agency residential 1,853 (100) 1,567 (203) 3,420 (302) Non-agency residential 384 (3) 60 (2) 444 (5) Foreign government securities 713 (24) 927 (116) 1,639 (140) Foreign corporate securities 1,406 (21) 2,457 (266) 3,864 (287) Total $ 7,414 $ (233) $ 9,978 $ (1,016) $ 17,392 $ (1,248) Securities where an allowance for credit loss was recorded 15 (1) 2 — 16 (1) Total fixed maturity securities - available for sale $ 7,428 $ (234) $ 9,980 $ (1,016) $ 17,408 $ (1,249) (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 Value Gross Fair Value Gross Fair Value Gross Fixed maturity securities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 122 $ (3) $ 772 $ (49) $ 893 $ (52) Obligations of U.S. states and political subdivisions 3 — 74 (11) 77 (11) Corporate securities 1,019 (58) 2,780 (263) 3,799 (321) Asset-backed securities 196 (2) 2,014 (49) 2,210 (51) Mortgage-backed securities Commercial 181 (19) 742 (73) 923 (92) Agency residential 423 (4) 2,126 (225) 2,549 (229) Non-agency residential 126 (1) 4 — 130 — Foreign government securities 172 (7) 985 (101) 1,156 (108) Foreign corporate securities 324 (6) 2,726 (265) 3,050 (271) Total $ 2,564 $ (101) $ 12,222 $ (1,035) $ 14,787 $ (1,136) Securities where an allowance for credit loss was recorded 2 (1) — — 2 (1) Total fixed maturity securities - available for sale $ 2,566 $ (102) $ 12,222 $ (1,035) $ 14,789 $ (1,137) (Some amounts may not reconcile due to rounding.) |
Schedule of Aggregate Fair Value and Gross Unrealized Depreciation of Fixed Maturity Securities by Contractual Maturity | Duration of Unrealized Loss at June 30, 2024 by Maturity Less than 12 months Greater than 12 months Total (Dollars in millions) Fair Value Gross Fair Value Gross Fair Value Gross Fixed maturity securities - available for sale Due in one year or less $ 256 $ (7) $ 763 $ (31) $ 1,019 $ (39) Due in one year through five years 1,602 (28) 3,727 (299) 5,328 (326) Due in five years through ten years 1,955 (49) 1,971 (303) 3,927 (352) Due after ten years 829 (26) 589 (88) 1,418 (114) Asset-backed securities 341 (3) 607 (24) 948 (27) Mortgage-backed securities 2,431 (120) 2,321 (270) 4,752 (390) Total $ 7,414 $ (233) $ 9,978 $ (1,016) $ 17,392 $ (1,248) Securities where an allowance for credit loss was recorded 15 (1) 2 — 16 (1) Total fixed maturity securities - available for sale $ 7,428 $ (234) $ 9,980 $ (1,016) $ 17,408 $ (1,249) (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 Value Gross Fair Value Gross Fair Value Gross Fixed maturity securities - available for sale Due in one year or less $ 184 $ (3) $ 773 $ (30) $ 958 $ (33) Due in one year through five years 699 (18) 3,841 (271) 4,540 (289) Due in five years through ten years 328 (15) 2,306 (310) 2,633 (325) Due after ten years 429 (39) 417 (77) 845 (116) Asset-backed securities 196 (2) 2,014 (49) 2,210 (51) Mortgage-backed securities 729 (24) 2,872 (298) 3,601 (323) Total $ 2,564 $ (101) $ 12,222 $ (1,035) $ 14,787 $ (1,136) Securities where an allowance for credit loss was recorded 2 (1) — — 2 (1) Total fixed maturity securities - available for sale $ 2,566 $ (102) $ 12,222 $ (1,035) $ 14,789 $ (1,137) (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: Three Months Ended Six Months Ended (Dollars in millions) 2024 2023 2024 2023 Fixed maturities $ 369 $ 276 $ 721 $ 523 Equity securities 1 1 2 2 Short-term investments and cash 43 34 81 51 Other invested assets Limited partnerships 94 53 148 38 Other 30 6 50 27 Gross investment income before adjustments 537 369 1,001 641 Funds held interest income (expense) 9 2 15 2 Future policy benefit reserve income (expense) — — — — Gross investment income 545 371 1,016 643 Investment expenses 18 14 31 26 Net investment income $ 528 $ 357 $ 985 $ 617 (Some amounts may not reconcile due to rounding.) |
Schedule of Components of Net Realized Capital Gains (Losses) | The components of net gains (losses) on investments are presented in the table below for the periods indicated: Three Months Ended Six Months Ended (Dollars in millions) 2024 2023 2024 2023 Fixed maturity securities Allowance for credit losses $ 4 $ — $ 6 $ (8) Net realized gains (losses) from dispositions (15) (3) (22) (1) Equity securities, fair value Net realized gains (losses) from dispositions — — 1 7 Gains (losses) from fair value adjustments (5) 8 (8) 12 Other invested assets (1) — (1) — Total net gains (losses) on investments $ (17) $ 5 $ (24) $ 10 (Some amounts may not reconcile due to rounding.) |
Schedule of Roll Forward of Allowance for Credit Losses of Fixed Maturities, Available for Sale | The following tables provide a roll forward of the Company’s beginning and ending balance of allowance for credit losses for the periods indicated: Roll Forward of Allowance for Credit Losses - Fixed Maturities - Available for Sale Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 (Dollars in millions) Corporate Foreign Total Corporate Foreign Total Beginning balance $ (45) $ — $ (46) $ (47) $ (1) $ (48) 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 3 — 4 5 1 6 Balance, end of period $ (42) $ — $ (42) $ (42) $ — $ (42) (Some amounts may not reconcile due to rounding.) Roll Forward of Allowance for Credit Losses - Fixed Maturities - Available for Sale Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 (Dollars in millions) Corporate Foreign Total Corporate Foreign Total Beginning balance $ (55) $ (7) $ (62) $ (45) $ (10) $ (54) Credit losses on securities where credit losses were not previously recorded (2) — (2) (14) — (14) Increases in allowance on previously impaired securities — — — — — — Decreases in allowance on previously impaired securities — — — — — — Reduction in allowance due to disposals 1 — 1 4 3 6 Balance, end of period $ (56) $ (7) $ (63) $ (56) $ (7) $ (63) (Some amounts may not reconcile due to rounding.) |
Schedule of Roll Forward of Allowance for Credit Losses of Fixed Maturities, Held to Maturity | Roll Forward of Allowance for Credit Losses - Fixed Maturities - Held to Maturity Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 (Dollars in millions) Corporate Asset-Backed Foreign Total Corporate Asset-Backed Foreign Total Beginning balance $ (2) $ (5) $ (1) $ (9) $ (2) $ (5) $ (1) $ (8) Credit losses on securities where credit losses were not previously recorded — — — — — — (1) (1) 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) $ (2) $ (5) $ (1) $ (8) (Some amounts may not reconcile due to rounding.) Roll Forward of Allowance for Credit Losses - Fixed Maturities - Held to Maturity Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 (Dollars in millions) Corporate Asset-Backed Foreign Total Corporate Asset-Backed Foreign Total Beginning balance $ (2) $ (6) $ (1) (9) $ (2) $ (6) $ (1) $ (9) Credit losses on securities where credit losses were not previously recorded — — — — — — — — Increases in allowance on previously impaired securities — — — — — — — — Decreases in allowance on previously impaired securities — — — — — — — — Reduction in allowance due to disposals — — — — — — — — Balance, end of period (2) (5) $ (1) $ (8) $ (2) $ (5) $ (1) $ (8) (Some amounts may not reconcile due to rounding.) |
Schedule of Proceeds and Split Between Gross Gains and Losses, from Sales of Fixed Maturity Securities | The proceeds and split between gross gains and losses from dispositions of fixed maturity and equity securities are presented in the table below for the periods indicated: Three Months Ended Six Months Ended (Dollars in millions) 2024 2023 2024 2023 Proceeds from sales of fixed maturity securities - available for sale $ 678 $ 96 $ 1,085 $ 168 Gross gains from dispositions 16 7 26 17 Gross losses from dispositions (30) (10) (48) (19) Proceeds from sales of equity securities $ 15 $ — $ 15 $ 46 Gross gains from dispositions 1 — 2 7 Gross losses from dispositions — — — — (Some amounts may not reconcile due to rounding.) |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurement Levels for all Assets and Liabilities | The following tables present the fair value measurement levels for all assets and liabilities, which the Company has recorded at fair value as of the periods indicated: Fair Value Measurement Using June 30, 2024 Quoted Prices Significant Significant (Dollars in millions) Assets: Fixed maturities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 1,024 $ — $ 1,024 $ — Obligations of U.S. States and political subdivisions 105 — 105 — Corporate securities 7,979 — 7,390 589 Asset-backed securities 5,317 — 3,875 1,442 Mortgage-backed securities Commercial 934 — 934 — Agency residential 4,745 — 4,745 — Non-agency residential 943 — 943 — Foreign government securities 2,240 — 2,240 — Foreign corporate securities 5,744 — 5,730 14 Total fixed maturities - available for sale 29,031 — 26,987 2,045 Equity securities, fair value 219 70 144 5 (Some amounts may not reconcile due to rounding.) Fair Value Measurement Using (Dollars in millions) December 31, 2023 Quoted Prices Significant Significant Assets: Fixed maturities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 996 $ — $ 996 $ — Obligations of U.S. States and political subdivisions 128 — 128 — Corporate securities 7,353 — 6,681 672 Asset-backed securities 5,618 — 4,313 1,305 Mortgage-backed securities Commercial 1,000 — 1,000 — Agency residential 4,695 — 4,695 — Non-agency residential 443 — 443 — Foreign government securities 1,967 — 1,967 — Foreign corporate securities 5,540 — 5,524 16 Total fixed maturities - available for sale 27,740 — 25,747 1,993 Equity securities, fair value 188 70 118 — (Some amounts may not reconcile due to rounding.) |
Schedule of Activity under Level 3, Fair Value Measurements using Significant Unobservable Inputs by Asset Type | The following tables present the activity under Level 3, fair value measurements using significant unobservable inputs for fixed maturities - available for sale, for the periods indicated: Total Fixed Maturities - Available for Sale Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 (Dollars in millions) Corporate Asset-Backed Foreign Total Corporate Asset-Backed Foreign Total Beginning balance of fixed maturities $ 620 $ 1,340 $ 16 $ 1,976 $ 672 $ 1,305 $ 16 $ 1,993 Total gains or (losses) (realized/unrealized) Included in earnings 5 — — 5 6 — — 6 Included in other comprehensive income (loss) (1) 3 — 2 (1) 10 — 9 Purchases, issuances and settlements (35) 99 (2) 62 (88) 126 (2) 37 Transfers in/(out) of Level 3 and reclassification of securities in/(out) of investment categories — — — — — — — — Ending balance of fixed maturities $ 589 $ 1,442 $ 14 $ 2,045 $ 589 $ 1,442 $ 14 $ 2,045 The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date $ 3 $ — $ — $ 3 $ 4 $ — $ — $ 4 (Some amounts may not reconcile due to rounding.) Total Fixed Maturities - Available for Sale Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 (Dollars in millions) Corporate Asset-Backed Foreign Total Corporate Asset-Backed Foreign Total Beginning balance of fixed maturities $ 709 $ 1,020 $ 16 $ 1,745 $ 715 $ 994 $ 16 $ 1,725 Total gains or (losses) (realized/unrealized) Included in earnings 1 — — 1 2 — — 2 Included in other comprehensive income (loss) (2) (8) — (9) (6) 10 — 4 Purchases, issuances and settlements 3 103 — 105 — 111 — 111 Transfers in/(out) of Level 3 and reclassification of securities in/(out) of investment categories — — — — — — — — Ending balance of fixed maturities $ 711 $ 1,115 $ 16 $ 1,842 $ 711 $ 1,115 $ 16 $ 1,842 The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date $ — $ — $ — $ — $ — $ — $ — $ — (Some amounts may not reconcile due to rounding.) |
RESERVE FOR LOSSES AND LAE (Tab
RESERVE FOR LOSSES AND LAE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Insurance [Abstract] | |
Schedule of Activity in the Reserve for Losses and LAE | Activity in the reserve for losses and loss adjustment expenses (“LAE”) is summarized for the periods indicated: Six Months Ended 2024 2023 (Dollars in millions) Gross reserves beginning of period $ 24,604 $ 22,065 Less reinsurance recoverables on unpaid losses (2,098) (2,105) Net reserves beginning of period 22,506 19,960 Incurred related to: Current year 4,548 3,927 Prior years — — Total incurred losses and LAE 4,548 3,927 Paid related to: Current year 1,068 1,307 Prior years 2,145 1,515 Total paid losses and LAE 3,213 2,822 Foreign exchange/translation adjustment (139) 165 Net reserves end of period 23,702 21,229 Plus reinsurance recoverables on unpaid losses 2,151 2,175 Gross reserves end of period $ 25,853 $ 23,405 (Some amounts may not reconcile due to rounding.) |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Underwriting Results for Segments | The following tables present the underwriting results for the operating segments for the periods indicated: Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 (Dollars in millions) Reinsurance Insurance Total Reinsurance Insurance Total Gross written premiums $ 3,209 $ 1,515 $ 4,725 $ 6,385 $ 2,752 $ 9,136 Net written premiums 3,033 1,051 4,084 5,975 2,009 7,984 Premiums earned $ 2,731 $ 962 $ 3,693 $ 5,459 $ 1,885 $ 7,345 Incurred losses and LAE 1,684 628 2,311 3,325 1,223 4,548 Commission and brokerage 672 117 790 1,343 228 1,571 Other underwriting expenses 72 162 234 142 316 458 Underwriting gain (loss) $ 303 $ 54 $ 358 $ 649 $ 118 $ 767 Net investment income 528 985 Net gains (losses) on investments (17) (24) Corporate expenses (22) (44) Interest, fee and bond issue cost amortization expense (37) (75) Other income (expense) 23 54 Income (loss) before taxes $ 832 $ 1,664 (Some amounts may not reconcile due to rounding.) Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 (Dollars in millions) Reinsurance Insurance Total Reinsurance Insurance Total Gross written premiums $ 2,747 $ 1,433 $ 4,180 $ 5,368 $ 2,555 $ 7,923 Net written premiums 2,621 1,053 3,674 5,059 1,944 7,003 Premiums earned $ 2,364 $ 888 $ 3,251 $ 4,590 $ 1,762 $ 6,352 Incurred losses and LAE 1,389 572 1,960 2,790 1,137 3,927 Commission and brokerage 579 107 686 1,135 212 1,347 Other underwriting expenses 61 143 205 124 280 405 Underwriting gain (loss) $ 335 $ 66 $ 401 $ 540 $ 133 $ 673 Net investment income 357 617 Net gains (losses) on investments 5 10 Corporate expenses (17) (36) Interest, fee and bond issue cost amortization expense (33) (65) Other income (expense) 38 (42) Income (loss) before taxes $ 750 $ 1,157 (Some amounts may not reconcile due to rounding.) |
CREDIT FACILITIES (Tables)
CREDIT FACILITIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Line of Credit Facility [Abstract] | |
Schedule of Outstanding Letters of Credit and Borrowings | The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At June 30, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Bermuda Re Wells Fargo Bank Bilateral LOC Facility $ 500 $ 477 12/31/2024 $ 500 $ 97 6/24/2024 — 71 6/28/2024 — 318 12/31/2024 — — $ 500 $ 477 $ 500 $ 486 (Some amounts may not reconcile due to rounding.) The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At June 30, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Bermuda Re Citibank LOC Facility- Committed $ 230 $ 197 12/31/2024 $ 230 $ — 1/21/2024 — 1/21/2025 4 2/29/2024 4 2/28/2025 1 3/1/2024 2 3/1/2025 3 9/23/2024 1 3/15/2025 1 12/1/2024 1 8/15/2025 — 12/16/2024 3 9/23/2025 — 12/20/2024 1 12/1/2025 217 12/31/2024 — 12/16/2025 1 8/15/2025 — 12/20/2025 4 12/31/2025 Bermuda Re Citibank LOC Facility - Uncommitted 140 106 12/31/2024 140 105 12/31/2024 — 3/30/2028 7 12/30/2027 7 6/30/2028 Total Citibank Bilateral Agreement $ 370 $ 326 $ 370 $ 340 (Some amounts may not reconcile due to rounding.) The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At June 30, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Bermuda Re Bayerische Landesbank Bilateral Secured Credit Facility - Committed $ 200 $ 188 12/31/2024 $ 200 $ 192 12/31/2024 (Some amounts may not reconcile due to rounding.) The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At June 30, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Bermuda Re Bayerische Landesbank Bilateral Unsecured Credit Facility - Committed $ 150 $ 150 12/31/2024 $ 150 $ 150 12/31/2024 (Some amounts may not reconcile due to rounding.) The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At June 30, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Bermuda Re Lloyd's Bank Credit Facility-Committed $ 250 $ 216 12/31/2024 $ 250 $ 235 12/31/2024 (Some amounts may not reconcile due to rounding.) The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At June 30, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Bermuda Re Barclays Bilateral Letter of Credit Facility $ 200 $ 150 12/30/2024 $ 200 $ 168 12/30/2024 14 12/31/2024 14 12/31/2024 Total Bermuda Re Barclays Bilateral Letter of Credit Facility $ 200 $ 164 $ 200 $ 182 The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At June 30, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Nordea Bank Letter of Credit Facility - Committed $ 200 $ 200 12/31/2024 $ 200 $ 200 12/31/2024 Nordea Bank Letter of Credit Facility - Uncommitted 100 100 12/31/2024 100 100 12/31/2024 Total Nordea Bank ABP, NY LOC Facility $ 300 $ 300 $ 300 $ 300 (Some amounts may not reconcile due to rounding.) |
SENIOR NOTES (Tables)
SENIOR NOTES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Senior Notes [Abstract] | |
Schedule of Outstanding Senior Notes | The table below displays Everest Reinsurance Holdings’ (“Holdings”) outstanding senior notes (the “Senior Notes”). Fair value is based on quoted market prices, but due to limited trading activity, the Senior Notes are considered Level 2 in the fair value hierarchy. June 30, 2024 December 31, 2023 (Dollars in millions) Date Issued Date Due Principal Consolidated Balance Fair Value Consolidated Balance Fair Value 4.868% Senior notes 6/5/2014 6/1/2044 $ 400 $ 398 $ 352 $ 398 $ 369 3.5% Senior notes 10/7/2020 10/15/2050 1,000 981 674 981 742 3.125% Senior notes 10/4/2021 10/15/2052 1,000 970 620 970 688 $ 2,400 $ 2,349 $ 1,646 $ 2,349 $ 1,799 (Some amounts may not reconcile due to rounding.) |
Schedule of Interest Expense Incurred in Connection with Senior Notes | Interest expense incurred in connection with the Senior Notes is as follows for the periods indicated: Three Months Ended Six Months Ended (Dollars in millions) Interest Paid Payable Dates 2024 2023 2024 2023 4.868% Senior notes semi-annually June 1/December 1 $ 5 $ 5 $ 10 $ 10 3.5% Senior notes semi-annually April 15/October 15 9 9 18 18 3.125% Senior notes semi-annually April 15/October 15 8 8 16 16 $ 22 $ 22 $ 43 $ 43 (Some amounts may not reconcile due to rounding.) |
LONG-TERM SUBORDINATED NOTES (T
LONG-TERM SUBORDINATED NOTES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Long-Term Debt, Unclassified [Abstract] | |
Schedule of Outstanding Fixed to Floating Rate Long Term Subordinated Notes | The table below displays Holdings’ outstanding fixed to floating rate long-term subordinated notes (“Subordinated Notes Issued 2007”). Fair value is based on quoted market prices, but due to limited trading activity, these subordinated notes are considered Level 2 in the fair value hierarchy. Maturity Date June 30, 2024 December 31, 2023 (Dollars in millions) Date Issued Original Scheduled Final Consolidated Balance Fair Value Consolidated Balance Fair Value Subordinated Notes Issued 2007 4/26/2007 $ 400 5/15/2037 5/1/2067 $ 218 $ 214 $ 218 $ 187 |
Schedule of Interest Expense Incurred in Connection with Long Term Subordinated Notes | Interest expense incurred in connection with these long-term subordinated notes is as follows for the periods indicated: Three Months Ended Six Months Ended (Dollars in millions) 2024 2023 2024 2023 Interest expense incurred $ 4 $ 4 $ 9 $ 8 |
COLLATERALIZED REINSURANCE, T_2
COLLATERALIZED REINSURANCE, TRUST AGREEMENTS AND OTHER RESTRICTED ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Collateralized Reinsurance And Trust Agreements [Abstract] | |
Schedule of Restricted Assets | The following table summarizes the Company’s restricted assets: At June 30, At December 31, (Dollars in millions) 2024 2023 Collateral in trust for non-affiliated agreements (1) $ 3,202 $ 3,208 Collateral for secured letter of credit facilities 1,370 1,438 Collateral for FHLB borrowings 1,051 1,077 Securities on deposit with or regulated by government authorities 1,397 1,447 Funds at Lloyd's 460 538 Funds held by reinsureds 1,189 1,135 Total restricted assets 8,669 8,843 (1) At June 30, 2024 and December 31, 2023, the total amount on deposit in trust accounts includes $199 million and $243 million of restricted cash respectively. |
Schedule of Premiums and Losses Ceded | The following table summarizes the premiums and losses that are ceded by the Company to Mt. Logan Re segregated accounts and assumed by the Company from Mt. Logan Re segregated accounts. Three Months Ended Six Months Ended Mt. Logan Re Segregated Accounts 2024 2023 2024 2023 (Dollars in millions) Ceded written premiums $ 82 $ 46 $ 169 $ 99 Ceded earned premiums 94 52 180 98 Ceded losses and LAE 26 16 64 53 Assumed written premiums 1 1 3 1 Assumed earned premiums 1 1 3 1 Assumed losses and LAE — — — — |
Schedule of Collateralized Reinsurance Agreements | The table below summarizes the various agreements. (Dollars in millions) Class Description Effective Date Expiration Date Limit Coverage Basis Series 2019-1 Class A-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 Series 2024-1 Class A US, Canada, Puerto Rico – Named Storm and Earthquake Events 6/27/2024 6/30/2028 75 Occurrence Series 2024-1 Class B US, Canada, Puerto Rico – Named Storm and Earthquake Events 6/27/2024 6/30/2028 125 Occurrence Total available limit as of June 30, 2024 $ 1,575 |
OTHER COMPREHENSIVE INCOME (L_2
OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Comprehensive Income (Loss), Tax [Abstract] | |
Schedule of Components of Comprehensive Income (Loss) | The following tables present the components of comprehensive income (loss) in the consolidated statements of operations for the periods indicated: Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 (Dollars in millions) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax URA(D) on securities - non-credit related $ (101) $ 32 $ (70) $ (293) $ 66 $ (227) Reclassification of net realized losses (gains) included in net income (loss) 11 (2) 9 17 (3) 14 Foreign currency translation adjustments (2) 2 — (45) 7 (38) Reclassification of benefit plan liability amortization included in net income (loss) 31 (6) 24 31 (7) 25 Total other comprehensive income (loss) $ (61) $ 25 $ (36) $ (290) $ 63 $ (227) (Some amounts may not reconcile due to rounding) Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 (Dollars in millions) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax URA(D) on securities - non-credit related $ (199) $ 30 $ (169) $ 75 $ 2 $ 77 Reclassification of net realized losses (gains) included in net income (loss) 4 (2) 2 10 (4) 5 Foreign currency translation adjustments (2) 1 (1) 31 (1) 30 Reclassification of benefit plan liability amortization included in net income (loss) 1 — — 1 — 1 Total other comprehensive income (loss) $ (196) $ 29 $ (168) $ 116 $ (3) $ 113 (Some amounts may not reconcile due to rounding) |
Schedule of Amount Reclassified from Accumulated Other Comprehensive Income | The following table presents details of the amounts reclassified from AOCI for the periods indicated: Three Months Ended Six Months Ended Affected line item within the statements of operations and comprehensive income (loss) AOCI component 2024 2023 2024 2023 (Dollars in millions) URA(D) on securities $ 11 $ 4 $ 17 $ 10 Other net realized capital gains (losses) (2) (2) (3) (4) Income tax expense (benefit) $ 9 $ 2 $ 14 $ 5 Net income (loss) Benefit plan net gain (loss) $ 31 $ 1 $ 31 $ 1 Other underwriting expenses (6) — (7) — Income tax expense (benefit) $ 24 $ 1 $ 25 $ 1 Net income (loss) (Some amounts may not reconcile due to rounding) |
Schedule of Components of Accumulated Other Comprehensive Income (Loss), Net of Tax | The following table presents the components of accumulated other comprehensive income (loss), net of tax, in the consolidated balance sheets for the periods indicated: Three Months Ended Six Months Ended (Dollars in millions) 2024 2023 2024 2023 Beginning balance of URA(D) on securities $ (876) $ (1,460) $ (723) $ (1,709) Current period change in URA(D) of investments - non-credit related (60) (167) (213) 82 Ending balance of URA(D) on securities (936) (1,627) (936) (1,627) Beginning balance of foreign currency translation adjustments (233) (223) (195) (254) Current period change in foreign currency translation adjustments — (1) (38) 30 Ending balance of foreign currency translation adjustments (233) (224) (233) (224) Beginning balance of benefit plan net gain (loss) (16) (33) (16) (33) Current period change in benefit plan net gain (loss) 24 — 25 1 Ending balance of benefit plan net gain (loss) 8 (32) 8 (32) Ending balance of accumulated other comprehensive income (loss) $ (1,160) $ (1,883) $ (1,160) $ (1,883) (Some amounts may not reconcile due to rounding.) |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income (Loss) per Common Share | Net income (loss) per common share has been computed as shown below, based upon weighted average common basic and dilutive shares outstanding. Three Months Ended Six Months Ended (Dollars in millions, except per share amounts) 2024 2023 2024 2023 Net income (loss) per share: Numerator Net income (loss) $ 724 $ 670 $ 1,457 $ 1,035 Less: dividends declared - common shares and unvested common shares (87) (72) (163) (136) Undistributed earnings 637 599 1,294 899 Percentage allocated to common shareholders (1) 98.8% 98.8% 98.8% 98.8% 630 591 1,279 888 Add: dividends declared - common shareholders 86 71 161 135 Numerator for basic and diluted earnings per common share $ 715 $ 662 $ 1,440 $ 1,022 Denominator Denominator for basic earnings per weighted-average common shares 42.8 40.7 42.9 39.7 Effect of dilutive securities: Options — — — — Denominator for diluted earnings per adjusted weighted-average common shares 42.8 40.7 42.9 39.7 Per common share net income (loss) Basic $ 16.70 $ 16.26 $ 33.57 $ 25.74 Diluted $ 16.70 $ 16.26 $ 33.57 $ 25.74 (1) Basic weighted - average common shares outstanding 42.8 40.7 42.9 39.7 Basic weighted - average common shares outstanding and unvested common shares expected to vest 43.4 41.2 43.4 40.2 Percentage allocated to common shareholders 98.8% 98.8% 98.8% 98.8% (Some amounts may not reconcile due to rounding.) |
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 | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Fixed maturity securities - available for sale | ||||||
Amortized Cost | $ 30,134 | $ 28,568 | ||||
Allowance for Credit Losses | (42) | $ (46) | (48) | $ (63) | $ (62) | $ (54) |
Unrealized Appreciation | 188 | 358 | ||||
Unrealized Depreciation | (1,249) | (1,137) | ||||
Fair Value | 29,031 | 27,740 | ||||
Fixed maturity securities - held to maturity | ||||||
Amortized Cost | 796 | 864 | ||||
Allowance for Credit Losses | (8) | (9) | (8) | (8) | (9) | (9) |
Unrealized Appreciation | 14 | 12 | ||||
Unrealized Depreciation | (13) | (13) | ||||
Fair Value | 788 | 854 | ||||
U.S. Treasury securities and obligations of U.S. government agencies and corporations | ||||||
Fixed maturity securities - available for sale | ||||||
Amortized Cost | 1,070 | 1,045 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Unrealized Appreciation | 3 | 3 | ||||
Unrealized Depreciation | (49) | (52) | ||||
Fair Value | 1,024 | 996 | ||||
Obligations of U.S. states and political subdivisions | ||||||
Fixed maturity securities - available for sale | ||||||
Amortized Cost | 114 | 138 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Unrealized Appreciation | 1 | 1 | ||||
Unrealized Depreciation | (9) | (11) | ||||
Fair Value | 105 | 128 | ||||
Corporate Securities | ||||||
Fixed maturity securities - available for sale | ||||||
Amortized Cost | 8,297 | 7,587 | ||||
Allowance for Credit Losses | (42) | (45) | (47) | (56) | (55) | (45) |
Unrealized Appreciation | 70 | 135 | ||||
Unrealized Depreciation | (347) | (322) | ||||
Fair Value | 7,979 | 7,353 | ||||
Fixed maturity securities - held to maturity | ||||||
Amortized Cost | 173 | 150 | ||||
Allowance for Credit Losses | (2) | (2) | (2) | (2) | (2) | (2) |
Unrealized Appreciation | 5 | 1 | ||||
Unrealized Depreciation | (5) | (3) | ||||
Fair Value | 171 | 146 | ||||
Asset-backed Securities | ||||||
Fixed maturity securities - available for sale | ||||||
Amortized Cost | 5,317 | 5,644 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Unrealized Appreciation | 27 | 25 | ||||
Unrealized Depreciation | (27) | (51) | ||||
Fair Value | 5,317 | 5,618 | ||||
Fixed maturity securities - held to maturity | ||||||
Amortized Cost | 517 | 609 | ||||
Allowance for Credit Losses | (5) | (5) | (5) | (5) | (6) | (6) |
Unrealized Appreciation | 5 | 4 | ||||
Unrealized Depreciation | (8) | (10) | ||||
Fair Value | 509 | 597 | ||||
Commercial | ||||||
Fixed maturity securities - available for sale | ||||||
Amortized Cost | 1,016 | 1,091 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Unrealized Appreciation | 1 | 1 | ||||
Unrealized Depreciation | (83) | (92) | ||||
Fair Value | 934 | 1,000 | ||||
Fixed maturity securities - held to maturity | ||||||
Amortized Cost | 21 | 21 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Unrealized Appreciation | 0 | 0 | ||||
Unrealized Depreciation | 0 | 0 | ||||
Fair Value | 21 | 21 | ||||
Agency Residential | ||||||
Fixed maturity securities - available for sale | ||||||
Amortized Cost | 5,025 | 4,869 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Unrealized Appreciation | 22 | 55 | ||||
Unrealized Depreciation | (302) | (229) | ||||
Fair Value | 4,745 | 4,695 | ||||
Non-agency Residential | ||||||
Fixed maturity securities - available for sale | ||||||
Amortized Cost | 940 | 431 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Unrealized Appreciation | 8 | 14 | ||||
Unrealized Depreciation | (5) | (2) | ||||
Fair Value | 943 | 443 | ||||
Foreign government securities | ||||||
Fixed maturity securities - available for sale | ||||||
Amortized Cost | 2,370 | 2,042 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Unrealized Appreciation | 11 | 33 | ||||
Unrealized Depreciation | (140) | (108) | ||||
Fair Value | 2,240 | 1,967 | ||||
Foreign corporate securities | ||||||
Fixed maturity securities - available for sale | ||||||
Amortized Cost | 5,985 | 5,720 | ||||
Allowance for Credit Losses | 0 | 0 | (1) | (7) | (7) | (10) |
Unrealized Appreciation | 46 | 92 | ||||
Unrealized Depreciation | (287) | (271) | ||||
Fair Value | 5,744 | 5,540 | ||||
Fixed maturity securities - held to maturity | ||||||
Amortized Cost | 84 | 84 | ||||
Allowance for Credit Losses | (1) | $ (1) | (1) | $ (1) | $ (1) | $ (1) |
Unrealized Appreciation | 4 | 7 | ||||
Unrealized Depreciation | 0 | 0 | ||||
Fair Value | $ 87 | $ 90 |
INVESTMENTS - Schedule of Amo_2
INVESTMENTS - Schedule of Amortized Cost and Fair Value of Fixed Maturity Securities, by Contractual Maturity (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Amortized Cost | ||
Due in one year or less | $ 1,472 | $ 1,289 |
Due after one year through five years | 7,560 | 7,094 |
Due after five years through ten years | 6,350 | 5,613 |
Due after ten years | 2,454 | 2,537 |
Amortized Cost | 30,134 | 28,568 |
Fair Value | ||
Due in one year or less | 1,439 | 1,261 |
Due after one year through five years | 7,264 | 6,858 |
Due after five years through ten years | 6,050 | 5,405 |
Due after ten years | 2,339 | 2,460 |
Fair Value | 29,031 | 27,740 |
Amortized Cost | ||
Due in one year or less | 12 | 5 |
Due after one year through five years | 53 | 59 |
Due after five years through ten years | 42 | 43 |
Due after ten years | 151 | 127 |
Amortized Cost | 796 | 864 |
Fair Value | ||
Due in one year or less | 12 | 5 |
Due after one year through five years | 52 | 58 |
Due after five years through ten years | 41 | 42 |
Due after ten years | 154 | 131 |
Fair Value | 788 | 854 |
Asset-backed Securities | ||
Amortized Cost | ||
Amortized Cost | 5,317 | 5,644 |
Fair Value | ||
Fair Value | 5,317 | 5,618 |
Amortized Cost | ||
Amortized Cost | 517 | 609 |
Fair Value | ||
Fair Value | 509 | 597 |
Commercial | ||
Amortized Cost | ||
Amortized Cost | 1,016 | 1,091 |
Fair Value | ||
Fair Value | 934 | 1,000 |
Amortized Cost | ||
Amortized Cost | 21 | 21 |
Fair Value | ||
Fair Value | 21 | 21 |
Agency Residential | ||
Amortized Cost | ||
Amortized Cost | 5,025 | 4,869 |
Fair Value | ||
Fair Value | 4,745 | 4,695 |
Non-agency Residential | ||
Amortized Cost | ||
Amortized Cost | 940 | 431 |
Fair Value | ||
Fair Value | $ 943 | $ 443 |
INVESTMENTS - Schedule of Chang
INVESTMENTS - Schedule of Changes in Net Unrealized Appreciation (Depreciation) for the Company's Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Securities, Available-for-Sale [Line Items] | ||||
Change in URA(D), pre-tax | $ (90) | $ (195) | $ (276) | $ 84 |
Deferred tax benefit (expense) | 30 | 28 | 63 | (2) |
Total URA(D) on securities arising during the period | $ (60) | $ (167) | (213) | 82 |
Fixed maturity securities - available for sale and short-term investments | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Change in URA(D), pre-tax | $ (276) | $ 84 |
INVESTMENTS - Schedule of Aggre
INVESTMENTS - Schedule of Aggregate Fair Value and Gross Unrealized Depreciation of Fixed Maturity Securities by Security Type (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value | ||
Less than 12 months | $ 7,428 | $ 2,566 |
Greater than 12 months | 9,980 | 12,222 |
Total | 17,408 | 14,789 |
Gross Unrealized Depreciation | ||
Less than 12 months | (234) | (102) |
Greater than 12 months | (1,016) | (1,035) |
Total | (1,249) | (1,137) |
No Recorded Allowance for Credit Losses | ||
Fair Value | ||
Less than 12 months | 7,414 | 2,564 |
Greater than 12 months | 9,978 | 12,222 |
Total | 17,392 | 14,787 |
Gross Unrealized Depreciation | ||
Less than 12 months | (233) | (101) |
Greater than 12 months | (1,016) | (1,035) |
Total | (1,248) | (1,136) |
U.S. Treasury securities and obligations of U.S. government agencies and corporations | ||
Fair Value | ||
Less than 12 months | 187 | 122 |
Greater than 12 months | 734 | 772 |
Total | 922 | 893 |
Gross Unrealized Depreciation | ||
Less than 12 months | (4) | (3) |
Greater than 12 months | (44) | (49) |
Total | (49) | (52) |
Obligations of U.S. states and political subdivisions | ||
Fair Value | ||
Less than 12 months | 5 | 3 |
Greater than 12 months | 64 | 74 |
Total | 69 | 77 |
Gross Unrealized Depreciation | ||
Less than 12 months | 0 | 0 |
Greater than 12 months | (9) | (11) |
Total | (9) | (11) |
Corporate Securities | ||
Fair Value | ||
Less than 12 months | 2,331 | 1,019 |
Greater than 12 months | 2,868 | 2,780 |
Total | 5,199 | 3,799 |
Gross Unrealized Depreciation | ||
Less than 12 months | (60) | (58) |
Greater than 12 months | (286) | (263) |
Total | (346) | (321) |
Asset-backed Securities | ||
Fair Value | ||
Less than 12 months | 341 | 196 |
Greater than 12 months | 607 | 2,014 |
Total | 948 | 2,210 |
Gross Unrealized Depreciation | ||
Less than 12 months | (3) | (2) |
Greater than 12 months | (24) | (49) |
Total | (27) | (51) |
Commercial | ||
Fair Value | ||
Less than 12 months | 194 | 181 |
Greater than 12 months | 694 | 742 |
Total | 888 | 923 |
Gross Unrealized Depreciation | ||
Less than 12 months | (18) | (19) |
Greater than 12 months | (65) | (73) |
Total | (83) | (92) |
Agency Residential | ||
Fair Value | ||
Less than 12 months | 1,853 | 423 |
Greater than 12 months | 1,567 | 2,126 |
Total | 3,420 | 2,549 |
Gross Unrealized Depreciation | ||
Less than 12 months | (100) | (4) |
Greater than 12 months | (203) | (225) |
Total | (302) | (229) |
Non-agency Residential | ||
Fair Value | ||
Less than 12 months | 384 | 126 |
Greater than 12 months | 60 | 4 |
Total | 444 | 130 |
Gross Unrealized Depreciation | ||
Less than 12 months | (3) | (1) |
Greater than 12 months | (2) | 0 |
Total | (5) | 0 |
Foreign government securities | ||
Fair Value | ||
Less than 12 months | 713 | 172 |
Greater than 12 months | 927 | 985 |
Total | 1,639 | 1,156 |
Gross Unrealized Depreciation | ||
Less than 12 months | (24) | (7) |
Greater than 12 months | (116) | (101) |
Total | (140) | (108) |
Foreign corporate securities | ||
Fair Value | ||
Less than 12 months | 1,406 | 324 |
Greater than 12 months | 2,457 | 2,726 |
Total | 3,864 | 3,050 |
Gross Unrealized Depreciation | ||
Less than 12 months | (21) | (6) |
Greater than 12 months | (266) | (265) |
Total | (287) | (271) |
Recorded an Allowance for Credit Losses | ||
Fair Value | ||
Less than 12 months | 15 | 2 |
Greater than 12 months | 2 | 0 |
Total | 16 | 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 by Contractual Maturity (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value | ||
Less than 12 months | $ 7,428 | $ 2,566 |
Greater than 12 months | 9,980 | 12,222 |
Total | 17,408 | 14,789 |
Gross Unrealized Depreciation | ||
Less than 12 months | (234) | (102) |
Greater than 12 months | (1,016) | (1,035) |
Total | (1,249) | (1,137) |
No Recorded Allowance for Credit Losses | ||
Fair Value | ||
Less than 12 months | 7,414 | 2,564 |
Greater than 12 months | 9,978 | 12,222 |
Total | 17,392 | 14,787 |
Gross Unrealized Depreciation | ||
Less than 12 months | (233) | (101) |
Greater than 12 months | (1,016) | (1,035) |
Total | (1,248) | (1,136) |
Due in one year or less | ||
Fair Value | ||
Less than 12 months | 256 | 184 |
Greater than 12 months | 763 | 773 |
Total | 1,019 | 958 |
Gross Unrealized Depreciation | ||
Less than 12 months | (7) | (3) |
Greater than 12 months | (31) | (30) |
Total | (39) | (33) |
Due in one year through five years | ||
Fair Value | ||
Less than 12 months | 1,602 | 699 |
Greater than 12 months | 3,727 | 3,841 |
Total | 5,328 | 4,540 |
Gross Unrealized Depreciation | ||
Less than 12 months | (28) | (18) |
Greater than 12 months | (299) | (271) |
Total | (326) | (289) |
Due in five years through ten years | ||
Fair Value | ||
Less than 12 months | 1,955 | 328 |
Greater than 12 months | 1,971 | 2,306 |
Total | 3,927 | 2,633 |
Gross Unrealized Depreciation | ||
Less than 12 months | (49) | (15) |
Greater than 12 months | (303) | (310) |
Total | (352) | (325) |
Due after ten years | ||
Fair Value | ||
Less than 12 months | 829 | 429 |
Greater than 12 months | 589 | 417 |
Total | 1,418 | 845 |
Gross Unrealized Depreciation | ||
Less than 12 months | (26) | (39) |
Greater than 12 months | (88) | (77) |
Total | (114) | (116) |
Asset-backed Securities | ||
Fair Value | ||
Less than 12 months | 341 | 196 |
Greater than 12 months | 607 | 2,014 |
Total | 948 | 2,210 |
Gross Unrealized Depreciation | ||
Less than 12 months | (3) | (2) |
Greater than 12 months | (24) | (49) |
Total | (27) | (51) |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 months | 2,431 | 729 |
Greater than 12 months | 2,321 | 2,872 |
Total | 4,752 | 3,601 |
Gross Unrealized Depreciation | ||
Less than 12 months | (120) | (24) |
Greater than 12 months | (270) | (298) |
Total | (390) | (323) |
Recorded an Allowance for Credit Losses | ||
Fair Value | ||
Less than 12 months | 15 | 2 |
Greater than 12 months | 2 | 0 |
Total | 16 | 2 |
Gross Unrealized Depreciation | ||
Less than 12 months | (1) | (1) |
Greater than 12 months | 0 | 0 |
Total | $ (1) | $ (1) |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 USD ($) security | Dec. 31, 2023 USD ($) security | |
Debt Securities, Available-for-Sale [Line Items] | ||
Aggregate market value of investments in unrealized loss position | $ 17,408 | $ 14,789 |
Gross unrealized losses on investments in unrealized loss position | 1,249 | 1,137 |
Fixed maturity securities, duration of unrealized loss, less than 12 months, gross unrealized depreciation | 234 | 102 |
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation | 1,016 | 1,035 |
Additional contractual commitments | 2,800 | |
Cash surrender value of life insurance | $ 1,400 | $ 1,300 |
Number of securities held as primary beneficiary | security | 0 | 0 |
Variable Interest Entity, Not Primary Beneficiary | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Maximum exposure to loss | $ 5,000 | $ 4,800 |
Commitments to fund investments | 2,200 | |
Partnership Interest | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Maximum exposure to loss | $ 3,600 | $ 3,400 |
Investments, Debt Securities Benchmark | Issuer | Issuer One | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Percentage of overall fair value of fixed maturity securities available for sale, less than | 3% | 3% |
Investments, Debt Securities Benchmark | Issuer | Issuer Two | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Percentage of overall fair value of fixed maturity securities available for sale, less than | 0.80% | 0.70% |
Investment Grade | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Fixed maturity securities, duration of unrealized loss, less than 12 months, gross unrealized depreciation | $ 227 | $ 86 |
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation | 1,000 | 1,000 |
Fixed maturities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Fixed maturity securities, duration of unrealized loss, less than 12 months, gross unrealized depreciation | 102 | |
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation | $ 1,000 | $ 1,000 |
INVESTMENTS - Schedule of Compo
INVESTMENTS - Schedule of Components of Net Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Securities, Available-for-Sale [Line Items] | ||||
Gross investment income before adjustments | $ 537 | $ 369 | $ 1,001 | $ 641 |
Funds held interest income (expense) | 9 | 2 | 15 | 2 |
Future policy benefit reserve income (expense) | 0 | 0 | 0 | 0 |
Gross investment income | 545 | 371 | 1,016 | 643 |
Investment expenses | 18 | 14 | 31 | 26 |
Net investment income | 528 | 357 | 985 | 617 |
Fixed maturities | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Gross investment income before adjustments | 369 | 276 | 721 | 523 |
Equity securities | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Gross investment income before adjustments | 1 | 1 | 2 | 2 |
Short-term investments and cash | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Gross investment income before adjustments | 43 | 34 | 81 | 51 |
Limited partnerships | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Gross investment income before adjustments | 94 | 53 | 148 | 38 |
Other | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Gross investment income before adjustments | $ 30 | $ 6 | $ 50 | $ 27 |
INVESTMENTS - Schedule of Com_2
INVESTMENTS - Schedule of Components of Net Realized Capital Gains (Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Securities, Available-for-Sale [Line Items] | ||||
Net gains (losses) on investments | $ (17) | $ 5 | $ (24) | $ 10 |
Fixed maturities | Market Value | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Allowance for credit losses | 4 | 0 | 6 | (8) |
Fixed maturities | Fair Value | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Net realized gains (losses) from dispositions | (15) | (3) | (22) | (1) |
Equity securities | Market Value | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Gains (losses) from fair value adjustments | (5) | 8 | (8) | 12 |
Equity securities | Fair Value | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Net realized gains (losses) from dispositions | 0 | 0 | 1 | 7 |
Other invested assets | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Net realized gains (losses) from dispositions | $ (1) | $ 0 | $ (1) | $ 0 |
INVESTMENTS - Schedule of Roll
INVESTMENTS - Schedule of Roll Forward of Allowance for Credit Losses of Fixed Maturities, Available for Sale (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ (46) | $ (62) | $ (48) | $ (54) |
Credit losses on securities where credit losses were not previously recorded | 0 | (2) | 0 | (14) |
Increases in allowance on previously impaired securities | 0 | 0 | 0 | 0 |
Decreases in allowance on previously impaired securities | 0 | 0 | 0 | 0 |
Reduction in allowance due to disposals | 4 | 1 | 6 | 6 |
Balance, end of period | (42) | (63) | (42) | (63) |
Corporate Securities | ||||
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | (45) | (55) | (47) | (45) |
Credit losses on securities where credit losses were not previously recorded | 0 | (2) | 0 | (14) |
Increases in allowance on previously impaired securities | 0 | 0 | 0 | 0 |
Decreases in allowance on previously impaired securities | 0 | 0 | 0 | 0 |
Reduction in allowance due to disposals | 3 | 1 | 5 | 4 |
Balance, end of period | (42) | (56) | (42) | (56) |
Foreign corporate securities | ||||
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 0 | (7) | (1) | (10) |
Credit losses on securities where credit losses were not previously recorded | 0 | 0 | 0 | 0 |
Increases in allowance on previously impaired securities | 0 | 0 | 0 | 0 |
Decreases in allowance on previously impaired securities | 0 | 0 | 0 | 0 |
Reduction in allowance due to disposals | 0 | 0 | 1 | 3 |
Balance, end of period | $ 0 | $ (7) | $ 0 | $ (7) |
INVESTMENTS - Schedule of Rol_2
INVESTMENTS - Schedule of Roll Forward of Allowance for Credit Losses of Fixed Maturities, Held to Maturity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ (9) | $ (9) | $ (8) | $ (9) |
Credit losses on securities where credit losses were not previously recorded | 0 | 0 | (1) | 0 |
Increases in allowance on previously impaired securities | 0 | 0 | 0 | 0 |
Decreases in allowance on previously impaired securities | 0 | 0 | 0 | 0 |
Reduction in allowance due to disposals | 0 | 0 | 1 | 0 |
Balance, end of period | (8) | (8) | (8) | (8) |
Corporate Securities | ||||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | (2) | (2) | (2) | (2) |
Credit losses on securities where credit losses were not previously recorded | 0 | 0 | 0 | 0 |
Increases in allowance on previously impaired securities | 0 | 0 | 0 | 0 |
Decreases in allowance on previously impaired securities | 0 | 0 | 0 | 0 |
Reduction in allowance due to disposals | 0 | 0 | 0 | 0 |
Balance, end of period | (2) | (2) | (2) | (2) |
Asset-backed Securities | ||||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | (5) | (6) | (5) | (6) |
Credit losses on securities where credit losses were not previously recorded | 0 | 0 | 0 | 0 |
Increases in allowance on previously impaired securities | 0 | 0 | 0 | 0 |
Decreases in allowance on previously impaired securities | 0 | 0 | 0 | 0 |
Reduction in allowance due to disposals | 0 | 0 | 1 | 0 |
Balance, end of period | (5) | (5) | (5) | (5) |
Foreign corporate securities | ||||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | (1) | (1) | (1) | (1) |
Credit losses on securities where credit losses were not previously recorded | 0 | 0 | (1) | 0 |
Increases in allowance on previously impaired securities | 0 | 0 | 0 | 0 |
Decreases in allowance on previously impaired securities | 0 | 0 | 0 | 0 |
Reduction in allowance due to disposals | 0 | 0 | 0 | 0 |
Balance, end of period | $ (1) | $ (1) | $ (1) | $ (1) |
INVESTMENTS - Schedule of Proce
INVESTMENTS - Schedule of Proceeds and Split Between Gross Gains and Losses, from Sales of Fixed Maturity Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales of fixed maturity securities - available for sale | $ 678 | $ 96 | $ 1,085 | $ 168 |
Gross gains from dispositions | 16 | 7 | 26 | 17 |
Gross losses from dispositions | (30) | (10) | (48) | (19) |
Proceeds from sales of equity securities | 15 | 0 | 15 | 46 |
Gross gains from dispositions | 1 | 0 | 2 | 7 |
Gross losses from dispositions | $ 0 | $ 0 | $ 0 | $ 0 |
FAIR VALUE - Narrative (Details
FAIR VALUE - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | $ 29,031,000,000 | $ 29,031,000,000 | $ 27,740,000,000 |
Transfer in and/or (out) of Level 3 | 0 | 0 | |
Other invested assets | 983,000,000 | 983,000,000 | 941,000,000 |
Investments | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Other invested assets | 260,000,000 | 260,000,000 | 274,000,000 |
Fixed maturities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | $ 2,000,000,000 | $ 2,000,000,000 | $ 2,000,000,000 |
FAIR VALUE - Schedule of Fair V
FAIR VALUE - Schedule of Fair Value Measurement Levels for all Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 29,031 | $ 27,740 |
Equity securities, fair value | 219 | 188 |
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 | 70 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 26,987 | 25,747 |
Equity securities, fair value | 144 | 118 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 2,045 | 1,993 |
Equity securities, fair value | 5 | 0 |
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 | 1,024 | 996 |
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 | 1,024 | 996 |
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 | 105 | 128 |
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 | 105 | 128 |
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 | 7,979 | 7,353 |
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 | 7,390 | 6,681 |
Corporate Securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 589 | 672 |
Asset-backed Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 5,317 | 5,618 |
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 | 3,875 | 4,313 |
Asset-backed Securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 1,442 | 1,305 |
Commercial | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 934 | 1,000 |
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 | 934 | 1,000 |
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 | 4,745 | 4,695 |
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 | 4,745 | 4,695 |
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 | 943 | 443 |
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 | 943 | 443 |
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 | 2,240 | 1,967 |
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 | 2,240 | 1,967 |
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 | 5,744 | 5,540 |
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 | 5,730 | 5,524 |
Foreign corporate securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 14 | $ 16 |
FAIR VALUE - Level 3 Activity (
FAIR VALUE - Level 3 Activity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Total gains or (losses) (realized/unrealized) | ||||
Transfers in/(out) of Level 3 and reclassification of securities in/(out) of investment categories | $ 0 | $ 0 | ||
Market Value | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance of fixed maturities | 1,976,000,000 | $ 1,745,000,000 | 1,993,000,000 | $ 1,725,000,000 |
Total gains or (losses) (realized/unrealized) | ||||
Included in earnings | 5,000,000 | 1,000,000 | 6,000,000 | 2,000,000 |
Included in other comprehensive income (loss) | $ 2,000,000 | $ (9,000,000) | $ 9,000,000 | $ 4,000,000 |
Included in other comprehensive income (loss) | Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent |
Purchases, issuances and settlements | $ 62,000,000 | $ 105,000,000 | $ 37,000,000 | $ 111,000,000 |
Transfers in/(out) of Level 3 and reclassification of securities in/(out) of investment categories | 0 | 0 | 0 | 0 |
Ending balance of fixed maturities | 2,045,000,000 | 1,842,000,000 | 2,045,000,000 | 1,842,000,000 |
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 | 3,000,000 | 0 | 4,000,000 | 0 |
Corporate Securities | Market Value | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance of fixed maturities | 620,000,000 | 709,000,000 | 672,000,000 | 715,000,000 |
Total gains or (losses) (realized/unrealized) | ||||
Included in earnings | 5,000,000 | 1,000,000 | 6,000,000 | 2,000,000 |
Included in other comprehensive income (loss) | (1,000,000) | (2,000,000) | (1,000,000) | (6,000,000) |
Purchases, issuances and settlements | (35,000,000) | 3,000,000 | (88,000,000) | 0 |
Transfers in/(out) of Level 3 and reclassification of securities in/(out) of investment categories | 0 | 0 | 0 | 0 |
Ending balance of fixed maturities | 589,000,000 | 711,000,000 | 589,000,000 | 711,000,000 |
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 | 3,000,000 | 0 | 4,000,000 | 0 |
Asset-backed Securities | Market Value | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance of fixed maturities | 1,340,000,000 | 1,020,000,000 | 1,305,000,000 | 994,000,000 |
Total gains or (losses) (realized/unrealized) | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 3,000,000 | (8,000,000) | 10,000,000 | 10,000,000 |
Purchases, issuances and settlements | 99,000,000 | 103,000,000 | 126,000,000 | 111,000,000 |
Transfers in/(out) of Level 3 and reclassification of securities in/(out) of investment categories | 0 | 0 | 0 | 0 |
Ending balance of fixed maturities | 1,442,000,000 | 1,115,000,000 | 1,442,000,000 | 1,115,000,000 |
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 | 0 | 0 |
Foreign corporate securities | Market Value | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance of fixed maturities | 16,000,000 | 16,000,000 | 16,000,000 | 16,000,000 |
Total gains or (losses) (realized/unrealized) | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases, issuances and settlements | (2,000,000) | 0 | (2,000,000) | 0 |
Transfers in/(out) of Level 3 and reclassification of securities in/(out) of investment categories | 0 | 0 | 0 | 0 |
Ending balance of fixed maturities | 14,000,000 | 16,000,000 | 14,000,000 | 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 | $ 0 | $ 0 |
RESERVE FOR LOSSES AND LAE - Sc
RESERVE FOR LOSSES AND LAE - Schedule of Activity in the Reserve for Losses and LAE (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Gross reserves beginning of period | $ 24,604 | $ 22,065 | ||
Less reinsurance recoverables on unpaid losses | (2,151) | (2,175) | $ (2,098) | $ (2,105) |
Net reserves beginning of period | 22,506 | 19,960 | ||
Incurred related to: | ||||
Current year | 4,548 | 3,927 | ||
Prior years | 0 | 0 | ||
Total incurred losses and LAE | 4,548 | 3,927 | ||
Paid related to: | ||||
Current year | 1,068 | 1,307 | ||
Prior years | 2,145 | 1,515 | ||
Total paid losses and LAE | 3,213 | 2,822 | ||
Foreign exchange/translation adjustment | (139) | 165 | ||
Net reserves end of period | 23,702 | 21,229 | ||
Plus reinsurance recoverables on unpaid losses | 2,151 | 2,175 | $ 2,098 | $ 2,105 |
Gross reserves end of period | $ 25,853 | $ 23,405 |
RESERVE FOR LOSSES AND LAE - Na
RESERVE FOR LOSSES AND LAE - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Current year losses | $ 4,548 | $ 3,927 |
Higher Premiums Earned | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Increase in earned premium growth | 528 | |
Catastrophe Losses | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Increase in earned premium growth | $ 94 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) | 6 Months Ended |
Jun. 30, 2024 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
SEGMENT REPORTING - Schedule of
SEGMENT REPORTING - Schedule of Underwriting Results for Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Gross written premiums | $ 4,725 | $ 4,180 | $ 9,136 | $ 7,923 |
Net written premiums | 4,084 | 3,674 | 7,984 | 7,003 |
Premiums earned | 3,693 | 3,251 | 7,345 | 6,352 |
Incurred losses and LAE | 2,311 | 1,960 | 4,548 | 3,927 |
Commission and brokerage | 790 | 686 | 1,571 | 1,347 |
Other underwriting expenses | 234 | 205 | 458 | 405 |
Underwriting gain (loss) | 358 | 401 | 767 | 673 |
Net investment income | 528 | 357 | 985 | 617 |
Net gains (losses) on investments | (17) | 5 | (24) | 10 |
Corporate expenses | (22) | (17) | (44) | (36) |
Interest, fee and bond issue cost amortization expense | (37) | (33) | (75) | (65) |
Other income (expense) | 23 | 38 | 54 | (42) |
INCOME (LOSS) BEFORE TAXES | 832 | 750 | 1,664 | 1,157 |
Reinsurance | ||||
Segment Reporting Information [Line Items] | ||||
Gross written premiums | 3,209 | 2,747 | 6,385 | 5,368 |
Net written premiums | 3,033 | 2,621 | 5,975 | 5,059 |
Premiums earned | 2,731 | 2,364 | 5,459 | 4,590 |
Incurred losses and LAE | 1,684 | 1,389 | 3,325 | 2,790 |
Commission and brokerage | 672 | 579 | 1,343 | 1,135 |
Other underwriting expenses | 72 | 61 | 142 | 124 |
Underwriting gain (loss) | 303 | 335 | 649 | 540 |
Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Gross written premiums | 1,515 | 1,433 | 2,752 | 2,555 |
Net written premiums | 1,051 | 1,053 | 2,009 | 1,944 |
Premiums earned | 962 | 888 | 1,885 | 1,762 |
Incurred losses and LAE | 628 | 572 | 1,223 | 1,137 |
Commission and brokerage | 117 | 107 | 228 | 212 |
Other underwriting expenses | 162 | 143 | 316 | 280 |
Underwriting gain (loss) | $ 54 | $ 66 | $ 118 | $ 133 |
CREDIT FACILITIES - Narrative (
CREDIT FACILITIES - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||||||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 27, 2023 | Dec. 13, 2023 | Aug. 18, 2023 | Dec. 30, 2022 | Nov. 21, 2022 | Nov. 03, 2021 | Aug. 27, 2021 | Aug. 09, 2021 | May 05, 2021 | Feb. 23, 2021 | |
Line of Credit Facility [Line Items] | |||||||||||||||
Line of credit facility, commitment | $ 1,700,000,000 | $ 1,700,000,000 | |||||||||||||
Uncommitted amount available | 240,000,000 | 240,000,000 | |||||||||||||
Extension period for availability | 2 years | ||||||||||||||
Borrowings from FHLB | $ 819,000,000 | $ 819,000,000 | $ 819,000,000 | ||||||||||||
Federal Home Loan Bank of New York | Everest Reinsurance Company (Everest Re) | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Maximum percentage of admitted assets allowed for borrowing base | 10% | 10% | |||||||||||||
Admitted assets for FHLB | $ 28,000,000,000 | $ 28,000,000,000 | |||||||||||||
Maximum amount available under FHLB | 2,800,000,000 | 2,800,000,000 | |||||||||||||
Borrowings from FHLB | 819,000,000 | 819,000,000 | |||||||||||||
Interest expense incurred | 11,000,000 | $ 7,000,000 | $ 22,000,000 | $ 13,000,000 | |||||||||||
Amount of borrowed funds required to be used to acquire additional membership stock, percentage | 4.50% | ||||||||||||||
Federal Home Loan Bank of New York | Everest Reinsurance Company (Everest Re) | Asset Pledged as Collateral | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Qualifying collateral pledged | 1,100,000,000 | $ 1,100,000,000 | |||||||||||||
Bermuda Re Wells Fargo Bank Bilateral Letter of Credit Facility | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Line of credit facility, commitment | 500,000,000 | 500,000,000 | 500,000,000 | $ 500,000,000 | $ 50,000,000 | ||||||||||
Bermuda Re Citibank LOC Facility - Uncommitted | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Uncommitted amount available | $ 140,000,000 | ||||||||||||||
Bermuda Re Citibank LOC Facility One | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Line of credit facility, commitment | 230,000,000 | 230,000,000 | 230,000,000 | $ 230,000,000 | |||||||||||
Bermuda Re Bayerische Landesbank Bilateral Letter of Credit Facility | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Line of credit facility, commitment | 200,000,000 | 200,000,000 | 200,000,000 | $ 200,000,000 | |||||||||||
Bermuda Re Bayerische Landesbank Bilateral Unsecured Credit Facility - Committed | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Line of credit facility, commitment | 150,000,000 | 150,000,000 | 150,000,000 | $ 150,000,000 | |||||||||||
Bermuda Re Lloyd's Bank Credit Facility-Committed | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Line of credit facility, commitment | 250,000,000 | 250,000,000 | 250,000,000 | $ 15,000,000 | $ 250,000,000 | ||||||||||
Bermuda Re Barclays Bilateral Letter of Credit Facility | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Line of credit facility, commitment | 200,000,000 | 200,000,000 | 200,000,000 | $ 200,000,000 | |||||||||||
Total Nordea Bank ABP, NY LOC Facility | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Line of credit facility, commitment | 300,000,000 | 300,000,000 | 300,000,000 | $ 300,000,000 | |||||||||||
Nordea Bank Letter of Credit Facility - Committed | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Line of credit facility, commitment | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | |||||||||||
Nordea Bank Letter of Credit Facility - Uncommitted | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Line of credit facility, commitment | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 |
CREDIT FACILITIES - Schedule of
CREDIT FACILITIES - Schedule of Outstanding Letters of Credit and Borrowings (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 | Dec. 27, 2023 | Aug. 18, 2023 | Dec. 30, 2022 | Nov. 21, 2022 | Nov. 03, 2021 | Aug. 27, 2021 | Aug. 09, 2021 | May 05, 2021 | Feb. 23, 2021 |
Line of Credit Facility [Line Items] | |||||||||||
Commitment | $ 1,700,000,000 | ||||||||||
Bermuda Re Wells Fargo Bank Bilateral LOC Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Commitment | 500,000,000 | $ 500,000,000 | $ 500,000,000 | $ 50,000,000 | |||||||
In Use | 477,000,000 | 486,000,000 | |||||||||
Wells Fargo Bank Bilateral LOC Agreement One | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Commitment | 500,000,000 | 500,000,000 | |||||||||
In Use | 477,000,000 | 97,000,000 | |||||||||
Wells Fargo Bank Bilateral LOC Agreement Two | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
In Use | 0 | 71,000,000 | |||||||||
Wells Fargo Bank Bilateral LOC Agreement Three | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
In Use | 0 | 318,000,000 | |||||||||
Wells Fargo Bank Bilateral LOC Agreement Four | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
In Use | 0 | 0 | |||||||||
Total Citibank Bilateral Agreement | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Commitment | 370,000,000 | 370,000,000 | |||||||||
In Use | 326,000,000 | 340,000,000 | |||||||||
Bermuda Re Citibank LOC Facility One | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Commitment | 230,000,000 | 230,000,000 | $ 230,000,000 | ||||||||
In Use | 197,000,000 | 0 | |||||||||
Bermuda Re Citibank LOC Facility Two | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
In Use | 0 | 4,000,000 | |||||||||
Bermuda Re Citibank LOC Facility Three | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
In Use | 4,000,000 | 1,000,000 | |||||||||
Bermuda Re Citibank LOC Facility Four | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
In Use | 2,000,000 | 3,000,000 | |||||||||
Bermuda Re Citibank LOC Facility Five | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
In Use | 1,000,000 | 1,000,000 | |||||||||
Bermuda Re Citibank LOC Facility Six | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
In Use | 1,000,000 | 0 | |||||||||
Bermuda Re Citibank LOC Facility Seven | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
In Use | 3,000,000 | 0 | |||||||||
Bermuda Re Citibank LOC Facility Eight | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
In Use | 1,000,000 | 217,000,000 | |||||||||
Bermuda Re Citibank Letter of Credit Facility Nine | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
In Use | 0 | 1,000,000 | |||||||||
Bermuda Re Citibank Letter of Credit Facility Ten | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
In Use | 0 | ||||||||||
Bermuda Re Citibank Letter of Credit Facility Eleven | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
In Use | 4,000,000 | ||||||||||
Bermuda Re Citibank LOC Facility - Uncommitted Facility One | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Commitment | 140,000,000 | 140,000,000 | |||||||||
In Use | 106,000,000 | 105,000,000 | |||||||||
Bermuda Re Citibank LOC Facility - Uncommitted Facility Two | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
In Use | 0 | 7,000,000 | |||||||||
Bermuda Re Citibank LOC Facility - Uncommitted Facility Three | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
In Use | 7,000,000 | ||||||||||
Bermuda Re Bayerische Landesbank Bilateral Secured Credit Facility - Committed | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Commitment | 200,000,000 | 200,000,000 | $ 200,000,000 | ||||||||
In Use | 188,000,000 | 192,000,000 | |||||||||
Bermuda Re Bayerische Landesbank Bilateral Unsecured Credit Facility - Committed | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Commitment | 150,000,000 | 150,000,000 | $ 150,000,000 | ||||||||
In Use | 150,000,000 | 150,000,000 | |||||||||
Bermuda Re Lloyd's Bank Credit Facility-Committed | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Commitment | 250,000,000 | 250,000,000 | $ 15,000,000 | $ 250,000,000 | |||||||
In Use | 216,000,000 | 235,000,000 | |||||||||
Bermuda Re Barclays Bilateral Letter of Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Commitment | 200,000,000 | 200,000,000 | $ 200,000,000 | ||||||||
In Use | 164,000,000 | 182,000,000 | |||||||||
Bermuda Re Barclays Credit Facility One | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Commitment | 200,000,000 | 200,000,000 | |||||||||
In Use | 150,000,000 | 168,000,000 | |||||||||
Bermuda Re Barclays Credit Facility Two | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
In Use | 14,000,000 | 14,000,000 | |||||||||
Total Nordea Bank ABP, NY LOC Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Commitment | 300,000,000 | 300,000,000 | $ 300,000,000 | ||||||||
In Use | 300,000,000 | 300,000,000 | |||||||||
Nordea Bank Letter of Credit Facility - Committed | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Commitment | 200,000,000 | 200,000,000 | 200,000,000 | ||||||||
In Use | 200,000,000 | 200,000,000 | |||||||||
Nordea Bank Letter of Credit Facility - Uncommitted | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Commitment | 100,000,000 | 100,000,000 | $ 100,000,000 | ||||||||
In Use | $ 100,000,000 | $ 100,000,000 |
SENIOR NOTES - Schedule of Outs
SENIOR NOTES - Schedule of Outstanding Senior Notes (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Consolidated Balance Sheet Amount | $ 2,349,000,000 | $ 2,349,000,000 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Amounts | 2,400,000,000 | |
Consolidated Balance Sheet Amount | 2,349,000,000 | 2,349,000,000 |
Fair Value | $ 1,646,000,000 | 1,799,000,000 |
Senior Notes | 4.868% Senior notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 4.868% | |
Principal Amounts | $ 400,000,000 | |
Consolidated Balance Sheet Amount | 398,000,000 | 398,000,000 |
Fair Value | $ 352,000,000 | 369,000,000 |
Senior Notes | 3.5% Senior notes | ||
Debt Instrument [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 | $ 674,000,000 | 742,000,000 |
Senior Notes | 3.125% Senior notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 3.125% | |
Principal Amounts | $ 1,000,000,000 | |
Consolidated Balance Sheet Amount | 970,000,000 | 970,000,000 |
Fair Value | $ 620,000,000 | $ 688,000,000 |
SENIOR NOTES - Schedule of Inte
SENIOR NOTES - Schedule of Interest Expense Incurred in Connection with Senior Notes (Details) - Senior Notes - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Instrument [Line Items] | ||||
Interest expense incurred | $ 22 | $ 22 | $ 43 | $ 43 |
4.868% Senior notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated interest rate | 4.868% | 4.868% | ||
Interest expense incurred | $ 5 | 5 | $ 10 | 10 |
3.5% Senior notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated interest rate | 3.50% | 3.50% | ||
Interest expense incurred | $ 9 | 9 | $ 18 | 18 |
3.125% Senior notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated interest rate | 3.125% | 3.125% | ||
Interest expense incurred | $ 8 | $ 8 | $ 16 | $ 16 |
LONG-TERM SUBORDINATED NOTES -
LONG-TERM SUBORDINATED NOTES - Schedule of Outstanding Fixed to Floating Rate Long Term Subordinated Notes (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Consolidated Balance Sheet Amount | $ 218,000,000 | $ 218,000,000 |
Subordinated Debt | 6.6 % Long Term Subordinated Notes | ||
Debt Instrument [Line Items] | ||
Original Principal Amount | 400,000,000 | |
Consolidated Balance Sheet Amount | 218,000,000 | 218,000,000 |
Fair Value | $ 214,000,000 | $ 187,000,000 |
LONG-TERM SUBORDINATED NOTES _2
LONG-TERM SUBORDINATED NOTES - Narrative (Details) - Subordinated Debt - 6.6 % Long Term Subordinated Notes | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2024 | Aug. 14, 2024 | May 14, 2017 | |
Debt Instrument [Line Items] | ||||
Debt instrument, stated interest rate | 6.60% | |||
Basis spread on variable rate | 2.385% | |||
Percentage of principal amount required for redemption | 100% | |||
Forecast | ||||
Debt Instrument [Line Items] | ||||
Reset quarterly interest rate | 7.97% | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Right to defer interest on one or more occasions for up to number of consecutive years | 10 years |
LONG-TERM SUBORDINATED NOTES _3
LONG-TERM SUBORDINATED NOTES - Schedule of Interest Expense Incurred in Connection with Long Term Subordinated Notes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Long-Term Debt, Unclassified [Abstract] | ||||
Interest expense incurred | $ 4 | $ 4 | $ 9 | $ 8 |
COLLATERALIZED REINSURANCE, T_3
COLLATERALIZED REINSURANCE, TRUST AGREEMENTS AND OTHER RESTRICTED ASSETS - Schedule of Restricted Assets (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Collateralized Reinsurance And Trust Agreements [Abstract] | ||
Collateral in trust for non-affiliated agreements | $ 3,202 | $ 3,208 |
Collateral for secured letter of credit facilities | 1,370 | 1,438 |
Collateral for FHLB borrowings | 1,051 | 1,077 |
Securities on deposit with or regulated by government authorities | 1,397 | 1,447 |
Funds at Lloyd's | 460 | 538 |
Funds held by reinsureds | 1,189 | 1,135 |
Total restricted assets | 8,669 | 8,843 |
Restricted cash | $ 199 | $ 243 |
COLLATERALIZED REINSURANCE, T_4
COLLATERALIZED REINSURANCE, TRUST AGREEMENTS AND OTHER RESTRICTED ASSETS - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Effects of Reinsurance [Line Items] | |
Catastrophe bond protection, threshold | $ 350 |
Mt Logan Re | |
Effects of Reinsurance [Line Items] | |
Percentage of voting common shares owned by Group | 100% |
COLLATERALIZED REINSURANCE, T_5
COLLATERALIZED REINSURANCE, TRUST AGREEMENTS AND OTHER RESTRICTED ASSETS - Schedule of Premiums and Losses Ceded (Details) - Mt Logan Re - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Effects of Reinsurance [Line Items] | ||||
Ceded written premiums | $ 82 | $ 46 | $ 169 | $ 99 |
Ceded earned premiums | 94 | 52 | 180 | 98 |
Ceded losses and LAE | 26 | 16 | 64 | 53 |
Assumed written premiums | 1 | 1 | 3 | 1 |
Assumed earned premiums | 1 | 1 | 3 | 1 |
Assumed losses and LAE | $ 0 | $ 0 | $ 0 | $ 0 |
COLLATERALIZED REINSURANCE, T_6
COLLATERALIZED REINSURANCE, TRUST AGREEMENTS AND OTHER RESTRICTED ASSETS - Schedule of Collateralized Reinsurance Agreements (Details) - Kilimanjaro Re Limited $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Effects of Reinsurance [Line Items] | |
Limit | $ 1,575 |
Reinsurance Contract [Axis]: Series 2019-1 Class A-2 | |
Effects of Reinsurance [Line Items] | |
Limit | 150 |
Reinsurance Contract [Axis]: Series 2019-1 Class B-2 | |
Effects of Reinsurance [Line Items] | |
Limit | 275 |
Reinsurance Contract [Axis]: Series 2021-1 Class A-1 | |
Effects of Reinsurance [Line Items] | |
Limit | 150 |
Reinsurance Contract [Axis]: Series 2021-1 Class A-2 | |
Effects of Reinsurance [Line Items] | |
Limit | 150 |
Reinsurance Contract [Axis]: Series 2021-1 Class B-1 | |
Effects of Reinsurance [Line Items] | |
Limit | 85 |
Reinsurance Contract [Axis]: Series 2021-1 Class B-2 | |
Effects of Reinsurance [Line Items] | |
Limit | 90 |
Reinsurance Contract [Axis]: Series 2021-1 Class C-1 | |
Effects of Reinsurance [Line Items] | |
Limit | 85 |
Reinsurance Contract [Axis]: Series 2021-1 Class C-2 | |
Effects of Reinsurance [Line Items] | |
Limit | 90 |
Reinsurance Contract [Axis]: Series 2022-1 Class A | |
Effects of Reinsurance [Line Items] | |
Limit | 300 |
Reinsurance Contract [Axis]: Series 2024-1 Class A | |
Effects of Reinsurance [Line Items] | |
Limit | 75 |
Reinsurance Contract [Axis]: Series 2024-1 Class B | |
Effects of Reinsurance [Line Items] | |
Limit | $ 125 |
OTHER COMPREHENSIVE INCOME (L_3
OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Components of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Before Tax | ||||
Total other comprehensive income (loss) | $ (61) | $ (196) | $ (290) | $ 116 |
Tax Effect | ||||
Total other comprehensive income (loss) | 25 | 29 | 63 | (3) |
Net of Tax | ||||
Total other comprehensive income (loss), net of tax | (36) | (168) | (227) | 113 |
URA(D) on securities | ||||
Before Tax | ||||
OCI before reclassification, before tax | (101) | (199) | (293) | 75 |
Reclassification from AOCI, before tax | 11 | 4 | 17 | 10 |
Tax Effect | ||||
OCI before reclassification, tax effect | 32 | 30 | 66 | 2 |
Reclassification from AOCI, tax | (2) | (2) | (3) | (4) |
Net of Tax | ||||
OCI before reclassifications, net of tax | (70) | (169) | (227) | 77 |
Reclassification from AOCI, net of tax | 9 | 2 | 14 | 5 |
Total other comprehensive income (loss), net of tax | (60) | (167) | (213) | 82 |
Foreign currency translation adjustments | ||||
Before Tax | ||||
OCI before reclassification, before tax | (2) | (2) | (45) | 31 |
Tax Effect | ||||
OCI before reclassification, tax effect | 2 | 1 | 7 | (1) |
Net of Tax | ||||
OCI before reclassifications, net of tax | 0 | (1) | (38) | 30 |
Total other comprehensive income (loss), net of tax | 0 | (1) | (38) | 30 |
Benefit plan net gain (loss) | ||||
Before Tax | ||||
Reclassification from AOCI, before tax | 31 | 1 | 31 | 1 |
Tax Effect | ||||
Reclassification from AOCI, tax | (6) | 0 | (7) | 0 |
Net of Tax | ||||
Reclassification from AOCI, net of tax | 24 | 0 | 25 | 1 |
Total other comprehensive income (loss), net of tax | $ 24 | $ 0 | $ 25 | $ 1 |
OTHER COMPREHENSIVE INCOME (L_4
OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Amount Reclassified from Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other net realized capital gains (losses) | $ (17) | $ 5 | $ (24) | $ 10 |
Income tax expense (benefit) | 108 | 80 | 207 | 122 |
Other underwriting expenses | (234) | (205) | (458) | (405) |
Net income (loss) | 724 | 670 | 1,457 | 1,035 |
URA(D) on securities | Reclassification From Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other net realized capital gains (losses) | 11 | 4 | 17 | 10 |
Income tax expense (benefit) | (2) | (2) | (3) | (4) |
Net income (loss) | 9 | 2 | 14 | 5 |
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) | (6) | 0 | (7) | 0 |
Other underwriting expenses | (31) | (1) | 31 | 1 |
Net income (loss) | $ 24 | $ 1 | $ 25 | $ 1 |
OTHER COMPREHENSIVE INCOME (L_5
OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Components of Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance beginning of period | $ 13,202 | |||
Current period change | $ (36) | $ (168) | (227) | $ 113 |
Balance end of period | 14,182 | 10,902 | 14,182 | 10,902 |
URA(D) on securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance beginning of period | (876) | (1,460) | (723) | (1,709) |
Current period change | (60) | (167) | (213) | 82 |
Balance end of period | (936) | (1,627) | (936) | (1,627) |
Foreign currency translation adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance beginning of period | (233) | (223) | (195) | (254) |
Current period change | 0 | (1) | (38) | 30 |
Balance end of period | (233) | (224) | (233) | (224) |
Benefit plan net gain (loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance beginning of period | (16) | (33) | (16) | (33) |
Current period change | 24 | 0 | 25 | 1 |
Balance end of period | 8 | (32) | 8 | (32) |
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance beginning of period | (1,125) | (1,716) | (934) | (1,996) |
Current period change | (36) | (168) | (227) | 113 |
Balance end of period | $ (1,160) | $ (1,883) | $ (1,160) | $ (1,883) |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS (Details) - $ / shares | 6 Months Ended | ||||||
May 15, 2024 | Feb. 29, 2024 | Feb. 28, 2024 | May 18, 2023 | Feb. 23, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Restricted Shares | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Grants in period in shares) | 4,016 | 7,104 | 207,839 | 925 | 174,171 | 218,959 | 175,096 |
Weighted-average grant-date fair value of equity awards other than options granted (in dollars per share) | $ 377.80 | $ 367.04 | $ 369.52 | $ 372.91 | $ 382.39 | ||
Performance Shares | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Grants in period in shares) | 18,713 | 14,975 | |||||
Weighted-average grant-date fair value of equity awards other than options granted (in dollars per share) | $ 369.52 | $ 382.39 |
EARNINGS PER COMMON SHARE - Sch
EARNINGS PER COMMON SHARE - Schedule of Net Income (Loss) per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator | ||||
Net income (loss) | $ 724 | $ 670 | $ 1,457 | $ 1,035 |
Less: dividends declared - common shares and unvested common shares | (87) | (72) | (163) | (136) |
Undistributed earnings, basic | 637 | 599 | 1,294 | 899 |
Undistributed earnings, diluted | $ 637 | $ 599 | $ 1,294 | $ 899 |
Percentage allocated to common shareholders | 98.80% | 98.80% | 98.80% | 98.80% |
Net income (loss) available to common stockholders, basic before dividends, common stock | $ 630 | $ 591 | $ 1,279 | $ 888 |
Net income (loss) available to common stockholders, diluted before dividends, common stock | 630 | 591 | 1,279 | 888 |
Add: dividends declared - common shareholders | 86 | 71 | 161 | 135 |
Numerator for basic earnings per common share | 715 | 662 | 1,440 | 1,022 |
Numerator for diluted earnings per common share | $ 715 | $ 662 | $ 1,440 | $ 1,022 |
Denominator | ||||
Denominator for basic earnings per weighted-average common shares (in shares) | 42.8 | 40.7 | 42.9 | 39.7 |
Effect of dilutive securities: | ||||
Options (in shares) | 0 | 0 | 0 | 0 |
Denominator for diluted earnings per adjusted weighted-average common shares (in shares) | 42.8 | 40.7 | 42.9 | 39.7 |
Per common share net income (loss) | ||||
Basic (in dollars per share) | $ 16.70 | $ 16.26 | $ 33.57 | $ 25.74 |
Diluted (in dollars per share) | $ 16.70 | $ 16.26 | $ 33.57 | $ 25.74 |
Basic weighted-average common shares outstanding (in shares) | 42.8 | 40.7 | 42.9 | 39.7 |
Basic weighted-average common shares outstanding and unvested common shares expected to vest (in shares) | 43.4 | 41.2 | 43.4 | 40.2 |
EARNINGS PER COMMON SHARE - Nar
EARNINGS PER COMMON SHARE - Narrative (Details) - shares | Jun. 30, 2024 | Jun. 30, 2023 |
Earnings Per Share [Abstract] | ||
Number of options outstanding (in shares) | 0 | 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Income Tax Disclosure [Abstract] | |
Deferred foreign income tax benefit | $ 578 |