COVER
COVER - shares | 3 Months Ended | |
Mar. 31, 2024 | May 01, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-14527 | |
Entity Registrant Name | EVEREST REINSURANCE HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 22-3263609 | |
Entity Address, Address Line One | 100 Everest Way | |
Entity Address, City or Town | Warren | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07059 | |
City Area Code | 908 | |
Local Phone Number | 604-3000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Shares, $0.01 par value | |
Entity Common Stock, Shares Outstanding | 1,000 | |
Entity Central Index Key | 0000914748 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
No Trading Symbol | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
ASSETS: | ||
Fixed maturities - available for sale, at fair value (amortized cost: 2024, $16,532; 2023, $16,304, credit allowances: 2024, $(46); 2023, $(48)) | $ 16,085 | $ 15,932 |
Fixed maturities - held to maturity, at amortized cost (fair value: 2024, $839; 2023, $850, net of credit allowances: 2024, $(9); 2023, $(8)) | 837 | 851 |
Equity securities, at fair value | 89 | 91 |
Other invested assets | 3,280 | 3,259 |
Other invested assets, at fair value | 1,478 | 1,481 |
Short-term investments | 1,591 | 1,298 |
Cash | 496 | 527 |
Total investments and cash | 23,858 | 23,439 |
Accrued investment income | 223 | 222 |
Premiums receivable (net of credit allowances:2024, $(28); 2023, $(28)) | 2,316 | 2,245 |
Income tax asset, net | 48 | 141 |
Funds held by reinsureds | 313 | 306 |
Deferred acquisition costs | 709 | 659 |
Prepaid reinsurance premiums | 469 | 490 |
Other assets (net of credit allowances: 2024, $(10); 2023, $(9)) | 897 | 774 |
TOTAL ASSETS | 32,184 | 31,638 |
LIABILITIES: | ||
Reserve for losses and loss adjustment expenses | 15,949 | 15,796 |
Unearned premium reserve | 3,894 | 3,886 |
Funds held under reinsurance treaties | 41 | 54 |
Amounts due to reinsurers | 536 | 488 |
Losses in course of payment | 96 | 139 |
Income tax liability, net | 0 | 29 |
Senior notes | 2,349 | 2,349 |
Long-term notes | 218 | 218 |
Borrowings from FHLB | 819 | 819 |
Accrued interest on debt and borrowings | 43 | 22 |
Unsettled securities payable | 261 | 126 |
Other liabilities | 460 | 526 |
Total liabilities | 24,665 | 24,451 |
Commitments and Contingencies (Note 11) | ||
STOCKHOLDER'S EQUITY: | ||
Common stock, par value: $0.01; 3,000 shares authorized; 1,000 shares issued and outstanding (2024 and 2023) | 0 | 0 |
Additional paid-in capital | 1,103 | 1,102 |
Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) of $(97) at 2024 and $(76) at 2023 | (364) | (287) |
Retained earnings | 6,780 | 6,372 |
Total stockholder's equity | 7,518 | 7,187 |
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | 32,184 | 31,638 |
Affiliated Entity | ||
ASSETS: | ||
Reinsurance recoverables | 1,516 | 1,547 |
Unaffiliated Party | ||
ASSETS: | ||
Reinsurance recoverables | $ 1,835 | $ 1,816 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
ASSETS: | ||
Fixed maturities - available for sale, at amortized cost | $ 16,532 | $ 16,304 |
Fixed maturities - available for sale, credit allowances | (46) | (48) |
Fixed maturities - held to maturity, at amortized cost | 839 | 850 |
Fixed maturities - held to maturity, net of credit allowances | (9) | (8) |
Premium receivable, net of credit allowances | (28) | (28) |
Reinsurance recoverables, net of credit allowances | (22) | (22) |
Other assets, net of credit allowances | $ (10) | $ (9) |
STOCKHOLDER'S EQUITY: | ||
Common stock, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, authorized (in shares) | 3,000 | 3,000 |
Common stock, shares issued (in shares) | 1,000 | 1,000 |
Common shares, outstanding (in shares) | 1,000 | 1,000 |
Accumulated other comprehensive income (loss), deferred income tax expense (benefit) | $ (97) | $ (76) |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
REVENUES: | ||
Premiums earned | $ 2,231 | $ 2,068 |
Net investment income | 312 | 190 |
Total net gains (losses) on investments | (8) | 22 |
Other income (expense) | 7 | (4) |
Total revenues | 2,543 | 2,276 |
CLAIMS AND EXPENSES: | ||
Incurred losses and loss adjustment expenses | 1,375 | 1,394 |
Commission, brokerage, taxes and fees | 472 | 436 |
Other underwriting expenses | 146 | 139 |
Corporate expenses | 5 | 6 |
Interest, fees and bond issue cost amortization expense | 37 | 32 |
Total claims and expenses | 2,036 | 2,007 |
INCOME (LOSS) BEFORE TAXES | 507 | 269 |
Income tax expense (benefit) | 99 | 49 |
NET INCOME (LOSS) | 408 | 220 |
Other comprehensive income (loss), net of tax: | ||
Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period | (62) | 112 |
Less: reclassification adjustment for realized losses (gains) included in net income (loss) | 3 | 9 |
Total URA(D) on securities arising during the period | (59) | 121 |
Foreign currency translation adjustments | (19) | 7 |
Reclassification adjustment for amortization of net (gain) loss included in net income (loss) | 0 | 0 |
Total benefit plan net gain (loss) for the period | 0 | 0 |
Total other comprehensive income (loss), net of tax | (77) | 128 |
COMPREHENSIVE INCOME (LOSS) | $ 331 | $ 348 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER’S EQUITY - USD ($) $ in Millions | Total | COMMON STOCK | ADDITIONAL PAID-IN CAPITAL: | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), NET OF DEFERRED INCOME TAXES: | RETAINED EARNINGS: |
Beginning balance (in shares) at Dec. 31, 2022 | 1,000 | ||||
Beginning balance at Dec. 31, 2022 | $ 1,102 | $ (848) | $ 5,400 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net increase (decrease) during the period | $ 128 | 128 | |||
Net income (loss) | 220 | 220 | |||
Ending balance at Mar. 31, 2023 | $ 6,002 | 1,102 | (720) | 5,620 | |
Ending balance (in shares) at Mar. 31, 2023 | 1,000 | ||||
Beginning balance (in shares) at Dec. 31, 2023 | 1,000 | 1,000 | |||
Beginning balance at Dec. 31, 2023 | $ 7,187 | 1,102 | (287) | 6,372 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net increase (decrease) during the period | (77) | (77) | |||
Net income (loss) | 408 | 408 | |||
Ending balance at Mar. 31, 2024 | $ 7,518 | $ 1,103 | $ (364) | $ 6,780 | |
Ending balance (in shares) at Mar. 31, 2024 | 1,000 | 1,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 408 | $ 220 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Decrease (increase) in premiums receivable | (78) | (83) |
Decrease (increase) in funds held by reinsureds, net | (21) | 3 |
Decrease (increase) in reinsurance recoverables | 0 | (15) |
Decrease (increase) in income taxes | 85 | 47 |
Decrease (increase) in prepaid reinsurance premiums | 19 | 17 |
Increase (decrease) in reserve for losses and loss adjustment expenses | 177 | 331 |
Increase (decrease) in unearned premiums | 15 | (23) |
Increase (decrease) in amounts due to reinsurers | 51 | 39 |
Increase (decrease) in losses in course of payment | (42) | (5) |
Change in equity adjustments in limited partnerships | (40) | 4 |
Distribution of limited partnership income | 20 | 14 |
Change in other assets and liabilities, net | (225) | (149) |
Non-cash compensation expense | 13 | 9 |
Amortization of bond premium (accrual of bond discount) | (19) | (3) |
Net (gains) losses on investments | 8 | (22) |
Net cash provided by (used in) operating activities | 372 | 384 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from fixed maturities matured/called/repaid - available for sale | 513 | 257 |
Proceeds from fixed maturities sold - available for sale | 346 | 49 |
Proceeds from fixed maturities matured/called/repaid - held to maturity | 43 | 28 |
Proceeds from equity securities sold | 0 | 46 |
Distributions from other invested assets | 81 | 86 |
Cost of fixed maturities acquired - available for sale | (1,120) | (903) |
Cost of fixed maturities acquired - held to maturity | (27) | (11) |
Cost of other invested assets acquired | (82) | (163) |
Net change in short-term investments | (282) | (5) |
Net change in unsettled securities transactions | 135 | 245 |
Net cash provided by (used in) investing activities | (392) | (372) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Tax benefit from share-based compensation, net of expense | 0 | (9) |
Net cash provided by (used in) financing activities | 0 | (9) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (10) | 8 |
Net increase (decrease) in cash | (31) | 11 |
Cash, beginning of period | 527 | 481 |
Cash, end of period | 496 | 492 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Income taxes paid (recovered) | 13 | 1 |
Interest paid | $ 16 | $ 10 |
GENERAL
GENERAL | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | GENERAL Everest Reinsurance Holdings, Inc. (“Holdings”), a Delaware company and direct subsidiary of Everest Underwriting Group (Ireland) Limited, which is a direct subsidiary of Everest Group, Ltd. (“Group”), through its subsidiaries, principally provides property and casualty reinsurance and insurance in the United States of America and internationally. As used in this document, “Company” means Holdings and its subsidiaries. “Bermuda Re” means Everest Reinsurance (Bermuda), Ltd., a subsidiary of Group; “Everest Re” means Everest Reinsurance Company, a subsidiary of Holdings, and its subsidiaries (unless the context otherwise requires). 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 | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The unaudited consolidated financial statements of the Company as of March 31, 2024 and December 31, 2023 and for the three months ended March 31, 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 months ended March 31, 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 months ended March 31, 2024. Future Adoption of Recently Issued Accounting Standard Changes. The Company assessed the adoption impacts of recently issued accounting standards that are effective after 2024 by the Financial Accounting Standards Board (“FASB”) on the Company’s consolidated financial statements. Additionally, the Company assessed whether there have been material updates to previously issued accounting standards that are effective after 2024. There were no accounting standards identified, other than those directly referenced below, that are expected to have a material impact on Holdings. Improvements to Income Tax Disclosures. In December 2023, the Financial Accounting Standards Board issued Accounting Standard Update No. 2023-09, which requires expanded income tax disclosures, including the disaggregation of existing disclosures related to the tax rate reconciliation and income taxes paid. The guidance is effective for annual periods beginning after December 15, 2024. Prospective application is required, with retrospective application permitted. The Company is currently evaluating the effect the updated guidance will have on the Company's financial statement disclosures. Application of Methods and Assumption Changes. The Company refined its premium estimation methodology for its risk attaching reinsurance contracts within its Reinsurance Segment to continue to recognize gross written premium over the term of the treaty, albeit over a different pattern than what was previously used. The refined estimate resulted in an increase of gross written premium for th e three months ended March 31, 2024, and has further aligned the estimation methodology across the reinsurance division globally. This change had no impact on the total written premium to be recognized over the term of the treaty. There was no impact on net earned premium and therefore, no impact on income from continuing operations, net income, or any related per-share amounts. |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS The following tables show 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 March 31, 2024 (Dollars in millions) Amortized Allowances for Unrealized Unrealized Fair Fixed maturity securities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 263 $ — $ — $ (18) $ 245 Obligations of U.S. states and political subdivisions 125 — 1 (10) 115 Corporate securities 4,667 (45) 67 (157) 4,532 Asset-backed securities 4,964 — 25 (29) 4,960 Mortgage-backed securities Commercial 567 — — (49) 519 Agency residential 2,512 — 16 (150) 2,377 Non-agency residential 663 — 8 (4) 667 Foreign government securities 963 — 7 (48) 922 Foreign corporate securities 1,808 — 25 (85) 1,748 Total fixed maturity securities - available for sale $ 16,532 $ (46) $ 149 $ (550) $ 16,085 (Some amounts may not reconcile due to rounding.) At December 31, 2023 (Dollars in millions) Amortized Allowances for Unrealized Unrealized Fair Fixed maturity securities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 265 $ — $ — $ (17) $ 247 Obligations of U.S. states and political subdivisions 138 — 1 (11) 128 Corporate securities 4,400 (47) 96 (160) 4,289 Asset-backed securities 5,307 — 23 (48) 5,282 Mortgage-backed securities Commercial 575 — — (53) 522 Agency residential 2,532 — 27 (124) 2,435 Non-agency residential 429 — 14 (1) 441 Foreign government securities 859 — 15 (39) 835 Foreign corporate securities 1,800 — 35 (82) 1,753 Total fixed maturity securities - available for sale $ 16,304 $ (48) $ 212 $ (536) $ 15,932 (Some amounts may not reconcile due to rounding.) 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 March 31, 2024 (Dollars in millions) Amortized Allowances for Unrealized Unrealized Fair Fixed maturity securities - held to maturity Corporate securities $ 175 $ (2) $ 5 $ (4) $ 173 Asset-backed securities 566 (5) 4 (9) 556 Mortgage-backed securities Commercial 21 — — — 21 Foreign corporate securities 84 (1) 6 — 89 Total fixed maturity securities - held to maturity $ 846 $ (9) $ 15 $ (13) $ 839 (Some amounts may not reconcile due to rounding.) At December 31, 2023 (Dollars in millions) Amortized Allowances for Unrealized Unrealized Fair Fixed maturity securities - held to maturity Corporate securities $ 150 $ (2) $ 1 $ (3) $ 146 Asset-backed securities 604 (5) 4 (10) 593 Mortgage-backed securities Commercial 21 — — — 21 Foreign corporate securities 84 (1) 7 — 90 Total fixed maturity securities - held to maturity $ 859 $ (8) $ 12 $ (13) $ 850 (Some amounts may not reconcile due to rounding.) 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 March 31, 2024 At December 31, 2023 (Dollars in millions) Amortized Fair Amortized Fair Fixed maturity securities - available for sale Due in one year or less $ 550 $ 539 $ 546 $ 537 Due after one year through five years 2,472 2,365 2,402 2,310 Due after five years through ten years 3,129 3,037 2,842 2,784 Due after ten years 1,676 1,621 1,672 1,621 Asset-backed securities 4,964 4,960 5,307 5,282 Mortgage-backed securities Commercial 567 519 575 522 Agency residential 2,512 2,377 2,532 2,435 Non-agency residential 663 667 429 441 Total fixed maturity securities - available for sale $ 16,532 $ 16,085 $ 16,304 $ 15,932 (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 March 31, 2024 At December 31, 2023 (Dollars in millions) Amortized Fair Amortized Fair Fixed maturity securities - held to maturity Due in one year or less $ 10 $ 10 $ 5 $ 5 Due after one year through five years 54 54 59 58 Due after five years through ten years 43 41 43 42 Due after ten years 152 157 127 131 Asset-backed securities 566 556 604 593 Mortgage-backed securities Commercial 21 21 21 21 Total fixed maturity securities - held to maturity $ 846 $ 839 $ 859 $ 850 (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 (Dollars in millions) 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 $ (74) $ 153 Change in URA(D), pre-tax (74) 153 Deferred tax benefit (expense) 16 (32) Change in URA(D), net of deferred taxes, included in stockholder's equity $ (59) $ 121 (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 March 31, 2024 By Security Type Less than 12 months Greater than 12 months Total (Dollars in millions) Fair Gross Fair Gross Fair Gross Fixed maturity securities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 4 $ — $ 238 $ (18) $ 242 $ (18) Obligations of U.S. states and political subdivisions 8 — 63 (9) 71 (10) Corporate securities 1,125 (32) 1,251 (124) 2,376 (156) Asset-backed securities 328 (2) 895 (27) 1,223 (29) Mortgage-backed securities Commercial 17 — 482 (48) 499 (49) Agency residential 594 (8) 1,017 (143) 1,611 (150) Non-agency residential 210 (4) 3 — 213 (4) Foreign government securities 160 (2) 445 (46) 605 (48) Foreign corporate securities 288 (2) 766 (82) 1,054 (85) Total 2,735 (50) 5,160 (499) 7,895 (549) Securities where an allowance for credit loss was recorded 33 (1) 2 — 35 (1) Total fixed maturity securities - available for sale $ 2,768 $ (51) $ 5,161 $ (499) $ 7,930 $ (550) (Some amounts may not reconcile due to rounding.) Duration of Unrealized Loss at March 31, 2024 By Maturity Less than 12 months Greater than 12 months Total (Dollars in millions) Fair Gross Fair Gross Fair Gross Fixed maturity securities - available for sale Due in one year or less $ 81 $ (1) $ 277 $ (10) $ 358 $ (11) Due in one year through five years 311 (3) 1,337 (108) 1,648 (111) Due in five years through ten years 650 (7) 932 (134) 1,581 (141) Due after ten years 545 (25) 217 (28) 762 (53) Asset-backed securities 328 (2) 895 (27) 1,223 (29) Mortgage-backed securities 821 (12) 1,502 (192) 2,323 (203) Total 2,735 (50) 5,160 (499) 7,895 (549) Securities where an allowance for credit loss was recorded 33 (1) 2 — 35 (1) Total fixed maturity securities - available for sale $ 2,768 $ (51) $ 5,161 $ (499) $ 7,930 $ (550) (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 March 31, 2024 were $7.9 billion and $0.5 billion, respectively. The fair value of securities for the single issuer (the United States government), whose securities comprised the largest unrealized loss position at March 31, 2024, did not exceed 1.4% of the overall fair value of the Company’s fixed maturity securities - available for sale. The fair value of the securities for the issuer with the second largest unrealized loss position at March 31, 2024 comprised less than 0.5% 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 $51 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 non-agency residential mortgage-backed securities. Of these unrealized losses, $43 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. The $499 million of unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position for more than one year related primarily to domestic and foreign corporate securities, asset-backed securities, agency residential and commercial mortgage-backed securities (“CMBS”), as well as foreign government securities. Of these unrealized losses, $475 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. In all instances, there were no projected cash flow shortfalls to recover the full book value of the investments and the related interest obligations. The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments. Based upon the Company’s current evaluation of securities in an unrealized loss position as of March 31, 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 Gross Fair Gross Fair Gross Fixed maturity securities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 7 $ — $ 238 $ (17) $ 245 $ (17) Obligations of U.S. states and political subdivisions 3 — 74 (11) 77 (11) Corporate securities 673 (47) 1,150 (112) 1,822 (160) Asset-backed securities 179 (2) 1,958 (46) 2,138 (48) Mortgage-backed securities Commercial 19 — 491 (53) 511 (53) Agency residential 203 (2) 1,030 (123) 1,233 (124) Non-agency residential 125 (1) 3 — 128 (1) Foreign government securities 38 (1) 423 (38) 461 (39) Foreign corporate securities 120 (2) 821 (80) 940 (82) Total $ 1,367 $ (54) $ 6,187 $ (481) $ 7,554 $ (536) Securities where an allowance for credit loss was recorded 2 (1) — — 2 (1) Total fixed maturity securities - available for sale $ 1,369 $ (55) $ 6,187 $ (481) $ 7,556 $ (536) (Some amounts may not reconcile due to rounding.) Duration of Unrealized Loss at December 31, 2023 By Maturity Less than 12 months Greater than 12 months Total (Dollars in millions) Fair Gross Fair Gross Fair Gross Fixed maturity securities - available for sale Due in one year or less $ 84 $ (1) $ 263 $ (10) $ 348 $ (11) Due in one year through five years 227 (5) 1,317 (96) 1,544 (101) Due in five years through ten years 150 (5) 951 (128) 1,101 (133) Due after ten years 379 (39) 174 (25) 553 (64) Asset-backed securities 179 (2) 1,958 (46) 2,138 (48) Mortgage-backed securities 347 (3) 1,523 (176) 1,871 (179) Total $ 1,367 $ (54) $ 6,187 $ (481) $ 7,554 $ (536) Securities where an allowance for credit loss was recorded 2 (1) — — 2 (1) Total fixed maturity securities - available for sale $ 1,369 $ (55) $ 6,187 $ (481) $ 7,556 $ (536) (Some amounts may not reconcile due to rounding.) The aggregate fair value and gross unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position at December 31, 2023 were $7.6 billion and $536 million, respectively. The fair value of securities for the single issuer (the United States government), whose securities comprised the largest unrealized loss position at December 31, 2023, did not exceed 1.4% of the overall fair value of the Company’s fixed maturity securities - available for sale. The fair value of the securities for the issuer with the second largest unrealized loss comprised less than 0.5% of the Company’s fixed maturity securities - 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 $55 million of unrealized losses related to fixed maturity securities - available for sale that have been in an unrealized loss position for less than one year were gen erally comprised of domestic and foreign corporate securities, foreign government securities, asset-backed securities as well as commercial and agency residential mortgage-backed securities. Of these unrealized losses, $39 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. The $481 million of unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position for more than one year related primarily to domestic and foreign corporate securities as well as agency residential mortgage-backed securities. Of these unrealized losses, $455 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. In all instances, there were no projected cash flow shortfalls to recover the full book value of the investments and the related interest obligations. The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments. The components of net investment income are presented in the table below for the periods indicated: Three Months Ended (Dollars in millions) 2024 2023 Fixed maturities $ 245 $ 174 Equity securities 1 1 Short-term investments and cash 22 11 Other invested assets Limited partnerships 24 (24) Dividends from preferred shares of affiliate 8 8 Other 20 22 Gross investment income before adjustments 319 192 Funds held interest income (expense) 4 3 Interest income from Group — 5 Gross investment income 323 200 Investment expenses 11 10 Net investment income $ 312 $ 190 (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 $1.0 billion in limited partnerships and private placement loans at March 31, 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 the policy cash surrender value of $1.4 billion and $1.3 billion as of March 31, 2024 and December 31, 2023, respectively. Other invested assets, at fair value, as of March 31, 2024 and December 31, 2023, were comprised of preferred shares held in Everest Preferred International Holdings, Ltd. (“Preferred Holdings”), a wholly-owned subsidiary of Group. See Note 13. 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 March 31, 2024 and December 31, 2023, the Company did not hold any interests 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 March 31, 2024 and December 31, 2023 is limited to the total carrying value of $3.3 billion and $3.3 billion, respectively, which are included in general and limited partnerships, COLI policies and other alternative investments in other invested assets in the Company's consolidated balance sheets. As of March 31, 2024, the Company has outstanding commitments totaling $980 million whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. These investments are generally of a passive nature in that the Company does not take an active role in management. In addition, the Company makes passive investments in structured securities issued by VIEs for which the Company is not the manager. These investments are included in asset-backed securities, which includes collateralized loan obligations and are classified as fixed maturities - available for sale. The Company has not provided financial or other support with respect to these investments other than its original investment. For these investments, the Company determined it is not the primary beneficiary due to the relative size of the Company’s investment in comparison to the principal amount of the structured securities issued by the VIEs, the level of credit subordination which reduces the Company’s obligation to absorb losses or right to receive benefits and the Company’s inability to direct the activities that most significantly impact the economic performance of the VIEs. The Company’s maximum exposure to loss on these investments is limited to the amount of the Company’s investment. The components of net gains (losses) on investments are presented in the table below for the periods indicated: Three Months Ended (Dollars in millions) 2024 2023 Fixed maturity securities Allowances for credit losses $ 1 $ (10) Net realized gains (losses) from dispositions (5) (1) Equity securities, fair value Net realized gains (losses) from dispositions 1 7 Gains (losses) from fair value adjustments (1) 3 Other invested assets — — Other invested assets, fair value Gains (losses) from fair value adjustments (3) 24 Short-term investment gains (losses) — — Total net gains (losses) on investments $ (8) $ 22 (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 March 31, 2024 Corporate Foreign Total (Dollars in millions) Beginning balance $ (47) $ — $ (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 2 — 2 Balance, end of period $ (45) $ — $ (46) (Some amounts may not reconcile due to rounding.) Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale Three Months Ended March 31, 2023 (Dollars in millions) Corporate Foreign Total Beginning balance $ (45) $ (1) $ (46) Credit losses on securities where credit losses were not previously recorded (12) — (12) Increases in allowance on previously impaired securities — — — Decreases in allowance on previously impaired securities — — — Reduction in allowance due to disposals 2 — 2 Balance, end of period $ (55) $ (1) $ (56) (Some amounts may not reconcile due to rounding.) Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity Three Months Ended March 31, 2024 Corporate Asset Backed Foreign Total (Dollars in millions) Beginning balance $ (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 — — — — Balance, end of period $ (2) $ (5) $ (1) $ (9) (Some amounts may not reconcile due to rounding.) Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity Three Months Ended March 31, 2023 (Dollars in millions) Corporate Asset Foreign Total Beginning balance $ (2) $ (6) $ (1) $ (9) Credit losses on securities where credit losses were not previously recorded — — — — Increases in allowance on previously impaired securities — — — — Decreases in allowance on previously impaired securities — — — — Reduction in allowance due to disposals — — — — Balance, end of period $ (2) $ (6) $ (1) $ (9) (Some amounts may not reconcile due to rounding.) The proceeds and split between gross gains and losses from sales of fixed maturity securities - available for sale and equity securities are presented in the table below for the periods indicated: Three Months Ended (Dollars in millions) 2024 2023 Proceeds from sales of fixed maturity securities - available for sale $ 346 $ 49 Gross gains from dispositions 8 3 Gross losses from dispositions (14) (4) Proceeds from sales of equity securities $ — $ 46 Gross gains from dispositions 1 7 Gross losses from dispositions — — (Some amounts may not reconcile due to rounding.) |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 31, 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 March 31, 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 a nationally recognized source. Fixed maturity securities listed in the tables have been categorized as Level 2, since a particular security may not have traded but the pricing services are able to use valuation models with observable market inputs such as interest rate yield curves and prices for similar fixed maturity securities in terms of issuer, maturity and seniority. For foreign government securities and foreign corporate securities, the fair values provided by the third-party pricing services in local currencies, and where applicable, are converted to U.S. dollars using currency exchange rates from nationally recognized sources. In addition, some of the fixed maturities with fair values categorized as Level 3 result when prices are not available from the nationally recognized pricing services and are obtained from investment managers and are derived using unobservable inputs. The Company will value the securities with unobservable inputs using comparable market information or receive fair values from investment managers. The investment managers may obtain non-binding price quotes for the securities from brokers. The single broker quotes are provided by market makers or broker-dealers who are recognized as market participants in the markets in which they are providing the quotes. The prices received from brokers are reviewed for reasonableness by the third-party asset managers and the Company. If the broker quotes are for foreign denominated securities, the quotes are converted to U.S. dollars using currency exchange rates from nationally recognized sources. The composition and valuation inputs for the presented fixed maturities categories Level 1 and Level 2 are as follows: • U.S. Treasury securities and obligations of U.S. government agencies and corporations are primarily comprised of U.S. Treasury bonds, and the fair value is based on observable market inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields; • Obligations of U.S. states and political subdivisions are comprised of state and municipal bond issuances, and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads; • Corporate securities are primarily comprised of U.S. corporate and public utility bond issuances, and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads; • Asset-backed and mortgage-backed securities fair values are based on observable inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields and cash flow models using observable inputs such as prepayment speeds, collateral performance and default spreads; • Foreign government securities are comprised of global non-U.S. sovereign bond issuances, and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source; • Foreign corporate securities are comprised of global non-U.S. corporate bond issuances, and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source. Other invested assets, at fair value, were categorized as Level 3 at March 31, 2024 and December 31, 2023, since it represented a privately placed convertible preferred stock issued by an affiliate. The stock was received in exchange for shares of the Company’s parent. The 25 year redeemable, convertible preferred stock with a 1.75% coupon is valued using a pricing model. The pricing model includes observable inputs such as the U.S. Treasury yield curve rate T note constant maturity 10 year and the swap rate on the Company’s June 1, 2044, 4.868% senior notes, with adjustments to reflect the Company’s own assumptions about the inputs that market participants would use in pricing the asset. The following tables present the fair value measurement levels for all assets, which the Company has recorded at fair value as of the periods indicated: Fair Value Measurement Using (Dollars in millions) March 31, 2024 Quoted Prices Significant Significant Assets: Fixed maturities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 245 $ — $ 245 $ — Obligations of U.S. states and political subdivisions 115 — 115 — Corporate securities 4,532 — 3,912 620 Asset-backed securities 4,960 — 3,620 1,340 Mortgage-backed securities Commercial 519 — 519 — Agency residential 2,377 — 2,377 — Non-agency residential 667 — 667 — Foreign government securities 922 — 922 — Foreign corporate securities 1,748 — 1,732 16 Total fixed maturities - available for sale 16,085 — 14,109 1,976 Equity securities, fair value 89 69 20 — Other invested assets, fair value 1,478 — — 1,478 (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 $ 247 $ — $ 247 $ — Obligations of U.S. states and political subdivisions 128 — 128 — Corporate securities 4,289 — 3,617 672 Asset-backed securities 5,282 — 3,977 1,305 Mortgage-backed securities Commercial 522 — 522 — Agency residential 2,435 — 2,435 — Non-agency residential 441 — 441 — Foreign government securities 835 — 835 — Foreign corporate securities 1,753 — 1,737 16 Total fixed maturities - available for sale 15,932 — 13,939 1,993 Equity securities, fair value 91 70 21 — Other invested assets, fair value 1,481 — — 1,481 (Some amounts may not reconcile due to rounding.) 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 March 31, 2024 (Dollars in millions) Corporate Asset Backed Foreign Total Beginning balance of fixed maturities $ 672 $ 1,305 $ 16 $ 1,993 Total gains or (losses) (realized/unrealized) Included in earnings (or changes in net assets) 1 — — 1 Included in other comprehensive income (loss) — 7 — 7 Purchases, issuances and settlements (52) 28 (1) (25) Transfers in/(out) of Level 3 and reclassification of securities in/(out) investment categories — — — — Ending balance $ 620 $ 1,340 $ 16 $ 1,976 The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date $ 1 $ — $ — $ 1 (Some amounts may not reconcile due to rounding.) Total Fixed Maturities - Available for Sale Three Months Ended March 31, 2023 (Dollars in millions) Corporate Asset Backed Foreign Total Beginning balance of fixed maturities $ 715 $ 994 $ 16 $ 1,725 Total gains or (losses) (realized/unrealized) Included in earnings (or changes in net assets) 1 — — 1 Included in other comprehensive income (loss) (4) 18 — 14 Purchases, issuances and settlements (3) 9 — 5 Transfers in/(out) of Level 3 and reclassification of securities in/(out) investment categories — — — — Ending balance $ 709 $ 1,020 $ 16 $ 1,745 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 months ended March 31, 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 of fixed maturity securities - held to maturity, senior notes and long-term subordinated notes can be found within Notes 3, 7 and 8, 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 investment in COLI policies are recorded at their cash surrender value and are therefore not required to be included in the tables above. See Note 3 of the Notes to these Consolidated Financial Statements for details of investments in COLI policies. In addition, $258 million and $274 million of investments within other invested assets on the consolidated balance sheets as of March 31, 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. |
RESERVES FOR LOSSES AND LAE
RESERVES FOR LOSSES AND LAE | 3 Months Ended |
Mar. 31, 2024 | |
Insurance [Abstract] | |
RESERVES FOR LOSSES AND LAE | RESERVES FOR LOSSES AND LAE The following table provides a roll forward of the Company’s beginning and ending reserves for losses and loss adjustment expenses (“LAE”) and is summarized for the periods indicated: Three Months Ended (Dollars in millions) 2024 2023 Gross reserve beginning of period $ 15,796 $ 14,977 Less reinsurance recoverables on unpaid losses (3,182) (3,684) Net reserves beginning of period 12,614 11,294 Incurred related to: Current year 1,399 1,403 Prior years (24) (9) Total incurred losses and LAE 1,375 1,394 Paid related to: Current year 199 585 Prior years 910 379 Total paid losses and LAE 1,109 964 Foreign exchange/translation adjustment (29) 5 Net reserves end of period 12,851 11,729 Plus reinsurance recoverables on unpaid losses 3,098 3,586 Gross reserves end of period $ 15,949 $ 15,315 (Some amounts may not reconcile due to rounding.) |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 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 United States as well as through branches in Canada and Singapore. The Insurance operation writes property and casualty insurance directly and through brokers, including for surplus lines, and general agents within the United States. The two segments are managed independently, but conform with corporate guidelines with respect to pricing, risk management, control of aggregate catastrophe exposures, capital, investments and support operations. Our two operating segments each have executive leadership who are responsible for the overall performance of their respective segments and who are directly accountable to our chief operating decision maker (“CODM”), the Chief Executive Officer of Everest Group, Ltd., who is ultimately responsible for reviewing the business to assess performance, make operating decisions and allocate resources. We report the results of our operations consistent with the manner in which our CODM reviews the business. During the fourth quarter of 2023, the Company revised the classification and presentation of certain products related to its accident and health business within the segment groupings. These products have been realigned from within the Reinsurance segment to the Insurance segment to appropriately reflect how the business segments are managed. These changes have been reflected retrospectively. The Company does not review and evaluate the financial results of its operating segments based upon balance sheet data. Management generally monitors and evaluates the financial performance of these operating segments based upon their underwriting results. Underwriting results include earned premium less losses and LAE incurred, commission and brokerage expenses and other underwriting expenses. We measure our underwriting results using ratios, in particular loss, commission and brokerage and other underwriting expense ratios, which, respectively, divide incurred losses, commissions and brokerage and other underwriting expenses by premiums earned. Management has determined that these measures are appropriate and align with how the business is managed. We continue to evaluate our segments as our business evolves and may further refine our segments and financial performance measures. The following tables present the underwriting results for the operating segments for the periods indicated: Three Months Ended March 31, 2024 (Dollars in millions) Reinsurance Insurance Total Gross written premiums $ 1,935 $ 837 $ 2,772 Net written premiums 1,624 642 2,266 Premiums earned $ 1,558 $ 672 $ 2,231 Incurred losses and LAE 932 443 1,375 Commission and brokerage 402 70 472 Other underwriting expenses 46 100 146 Underwriting gain (loss) $ 178 $ 59 $ 237 Net investment income 312 Net gains (losses) on investments (8) Corporate expenses (5) Interest, fees and bond issue cost amortization expense (37) Other income (expense) 7 Income (loss) before taxes $ 507 (Some amounts may not reconcile due to rounding) Three Months Ended March 31, 2023 (Dollars in millions) Reinsurance Insurance Total Gross written premiums $ 1,627 $ 869 $ 2,496 Net written premiums 1,357 706 2,063 Premiums earned $ 1,351 $ 718 $ 2,068 Incurred losses and LAE 919 475 1,394 Commission and brokerage 357 80 436 Other underwriting expenses 38 101 139 Underwriting gain (loss) $ 36 $ 63 $ 99 Net investment income 190 Net gains (losses) on investments 22 Corporate expenses (6) Interest, fees and bond issue cost amortization expense (32) Other income (expense) (4) Income (loss) before taxes $ 269 (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. |
SENIOR NOTES
SENIOR NOTES | 3 Months Ended |
Mar. 31, 2024 | |
Senior Notes [Abstract] | |
SENIOR NOTES | SENIOR NOTES The table below displays Holdings’ outstanding senior notes. Fair value is based on quoted market prices, but due to limited trading activity, these senior notes are considered Level 2 in the fair value hierarchy. March 31, 2024 December 31, 2023 (Dollars in millions) Date Issued Date Due Principal Consolidated Fair Consolidated Fair 4.868% Senior notes 6/5/2014 6/1/2044 $ 400 $ 398 $ 363 $ 398 $ 369 3.5% Senior notes 10/7/2020 10/15/2050 1,000 981 702 981 742 3.125% Senior notes 10/4/2021 10/15/2052 1,000 970 648 970 688 $ 2,400 $ 2,349 $ 1,713 $ 2,349 $ 1,799 (Some amounts may not reconcile due to rounding.) Interest expense incurred in connection with these senior notes is as follows for the periods indicated: Three Months Ended (Dollars in millions) Interest Paid Payable Dates 2024 2023 4.868% Senior notes semi-annually June 1/December 1 $ 5 $ 5 3.5% Senior notes semi-annually April 15/October 15 9 9 3.125% Senior notes semi-annually April 15/October 15 8 8 $ 22 $ 22 (Some amounts may not reconcile due to rounding.) |
LONG-TERM SUBORDINATED NOTES
LONG-TERM SUBORDINATED NOTES | 3 Months Ended |
Mar. 31, 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. March 31, 2024 December 31, 2023 Original Maturity Date Consolidated Fair Consolidated Fair (Dollars in millions) Date Issued Scheduled Final Long-term subordinated notes 4/26/2007 $ 400 5/15/2037 5/1/2067 $ 218 $ 205 $ 218 $ 187 During the fixed rate interest period from May 3, 2007 through May 14, 2017, interest was at the annual rate of 6.6%, payable semi-annually in arrears on November 15 and May 15 of each year, commencing on November 15, 2007. During the floating rate interest period from May 15, 2017 through maturity, interest will be based on the 3 month LIBOR plus 238.5 basis points, reset quarterly, payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, subject to Holdings’ right to defer interest on one or more occasions for up to ten ing August 15, 2023, interest will be based on 3-month Chicago Mercantile Exchange (“CME”) Term Secured Overnight Financing Rate (“SOFR”) plus a spread. Holdings may redeem the long-term subordinated notes on or after May 15, 2017, in whole or in part at 100% of the principal amount plus accrued and unpaid interest; however, redemption on or after the scheduled maturity date and prior to May 1, 2047 is subject to a replacement capital covenant. This covenant is for the benefit of certain senior note holders and it mandates that Holdings receive proceeds from the sale of another subordinated debt issue, of at least similar size, before it may redeem the subordinated notes. The Company’s 4.868% senior notes, due on June 1, 2044, 3.5% senior notes due on October 15, 2050 and 3.125% senior notes due on October 15, 2052 are the Company’s long-term indebtedness that rank senior to the long-term subordinated notes. Interest expense incurred in connection with these long-term subordinated notes is as follows for the periods indicated: Three Months Ended (Dollars in millions) 2024 2023 Interest expense incurred $ 4 $ 4 |
FEDERAL HOME LOAN BANK MEMBERSH
FEDERAL HOME LOAN BANK MEMBERSHIP | 3 Months Ended |
Mar. 31, 2024 | |
Federal Home Loan Bank Membership [Abstract] | |
FEDERAL HOME LOAN BANK MEMBERSHIP | FEDERAL HOME LOAN BANK MEMBERSHIPEverest Re is a member of the Federal Home Loan Bank of New York (“FHLBNY”), which allows Everest Re to borrow up to 10% of its statutory admitted assets. As of March 31, 2024, Everest Re had admitted assets of approximately $27.0 billion which provides borrowing capacity in excess of $2.7 billion. As of March 31, 2024, Everest Re had $819 million of borrowings outstanding, all of which expire in 2024. Everest Re incurred interest expense of $11 million and $6 million for the three months ended March 31, 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 requires that members must have sufficient qualifying collateral pledged. As of March 31, 2024, Everest Re had $1.1 billion of collateral pledged. |
COLLATERALIZED REINSURANCE, TRU
COLLATERALIZED REINSURANCE, TRUST AGREEMENTS AND OTHER RESTRICTED ASSETS | 3 Months Ended |
Mar. 31, 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: (Dollars in millions) March 31, 2024 December 31, 2023 Collateral in trust for non-affiliated agreements (1) $ 764 $ 825 Collateral for FHLB borrowings 1,067 1,077 Securities on deposit with or regulated by government authorities 1,415 1,447 Funds held by reinsureds 313 306 Total restricted assets $ 3,559 $ 3,654 (1) At March 31, 2024 and December 31, 2023 the total amount on deposit in the trust account includes $121 million and $116 million of restricted cash, respectively. The Company entered into various collateralized reinsurance agreements with Kilimanjaro Re Limited (“Kilimanjaro”), a Bermuda-based special purpose reinsurer, to provide the Company with catastrophe reinsurance coverage. These agreements are multi-year reinsurance contracts which cover named storm and earthquake events. The table below summarizes the various agreements: (Dollars in millions) Class Description Effective Date Expiration Date Limit Coverage 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 Total available limit as of March 31, 2024 $ 1,375 Recoveries under these collateralized reinsurance agreements with Kilimanjaro are primarily dependent on estimated industry level insured losses from covered events, as well as the geographic location of the events. The estimated industry level of insured losses is obtained from published estimates by an independent recognized authority on insured property losses. The Company had up to $350 million of catastrophe loss protection, including a catastrophe bond (“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 April 2024 exceeds the attachment point. The potential recovery under the CAT Bond is not expected to be 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 | 3 Months Ended |
Mar. 31, 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) | 3 Months Ended |
Mar. 31, 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 March 31, 2024 (Dollars in millions) Before Tax Tax Effect Net of Tax URA(D) on securities - non-credit related $ (78) $ 16 $ (62) Reclassification of net realized losses (gains) included in net income (loss) 4 (1) 3 Foreign currency translation adjustments (24) 5 (19) Reclassification of amortization of net gain (loss) included in net income (loss) 1 — — Total other comprehensive income (loss) $ (98) $ 20 $ (77) (Some amounts may not reconcile due to rounding) Three Months Ended March 31, 2023 (Dollars in millions) Before Tax Tax Effect Net of Tax URA(D) on securities - non-credit related $ 142 $ (30) $ 112 Reclassification of net realized losses (gains) included in net income (loss) 11 (2) 9 Foreign currency translation adjustments 8 (1) 7 Reclassification of amortization of net gain (loss) included in net income (loss) — — — Total other comprehensive income (loss) $ 161 $ (33) $ 128 (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 Affected line item within the AOCI component 2024 2023 (Dollars in millions) URA(D) on securities $ 4 $ 11 Other net gains (losses) on investments (1) (2) Income tax expense (benefit) $ 3 $ 9 Net income (loss) Benefit plan net gain (loss) $ 1 $ — Other underwriting expenses — — Income tax expense (benefit) $ — $ — 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 (Dollars in millions) 2024 2023 Beginning balance of URA(D) on securities $ (289) $ (816) Current period change in URA(D) of investments - non-credit related (59) 121 Ending balance of URA(D) on securities (348) (695) Beginning balance of foreign currency translation adjustments 19 1 Current period change in foreign currency translation adjustments (19) 7 Ending balance of foreign currency translation adjustments — 8 Beginning balance of benefit plan net gain (loss) (16) (33) Current period change in benefit plan net gain (loss) — — Ending balance of benefit plan net gain (loss) (16) (33) Ending balance of accumulated other comprehensive income (loss) $ (364) $ (720) (Some amounts may not reconcile due to rounding.) |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
RELATED-PARTY TRANSACTIONS | RELATED-PARTY TRANSACTIONS Holdings holds 1,773.214 preferred shares of Preferred Holdings with a $1 million par value and 1.75% annual dividend rate. Holdings received these shares in December 2015 in exchange for previously held 9,719,971 common shares of Group. After the exchange, Holdings no longer holds any shares or has any ownership interest in Group. Holdings has reported the preferred shares in Preferred Holdings, as other invested assets, fair value, in the consolidated balance sheets with changes in fair value re-measurement recorded in net gains (losses) on investments in the consolidated statements of operations and comprehensive income (loss). The following table presents the dividends received on the preferred shares of Preferred Holdings that are reported as net investment income in the consolidated statements of operations and comprehensive income (loss) for the period indicated: Three Months Ended (Dollars in millions) 2024 2023 Dividends received on preferred stock of affiliate $ 8 $ 8 Affiliates The Company has engaged in reinsurance transactions with Bermuda Re, Everest Reinsurance Company (Ireland), dac (“Ireland Re”), Everest Insurance (Ireland), dac (“Ireland Insurance”), Everest International Reinsurance Ltd. (“Everest International”), Everest Insurance Company of Canada (“Everest Canada”), Lloyd’s Syndicate 2786 and Mt. Logan Re, which are affiliated companies primarily driven by enterprise risk and capital management considerations under which business is ceded at market rates and terms. Effective January 1, 2018, Everest Re entered into a twelve month whole account aggregate stop loss reinsurance contract (“stop loss agreement”) with Bermuda Re. The stop loss agreement provides coverage for ultimate net losses on applicable net earned premiums above a retention level, subject to certain other coverage limits and conditions. The stop loss agreement was most recently renewed effective January 1, 2024. The stop loss agreements between Everest Re and Bermuda Re that were effective for 2018 and 2019 were both commuted during the third quarter of 2023. The commutations of the agreements resulted in the recognition of an aggregate loss of $37 million for Everest Re in the third quarter of 2023. Everest Re entered into a catastrophe excess of loss reinsurance contract with Bermuda Re (UK Branch), effective January 1, 2021 through December 31, 2021. The contract provides Bermuda Re (UK Branch) with up to £100 million of reinsurance coverage for each catastrophe occurrence above £24 million. Bermuda Re (UK Branch) paid Everest Re £5 million for this coverage. This contract was most recently renewed effective January 1, 2024. Everest Re entered into a catastrophe excess of loss reinsurance contract with Ireland Re, effective February 1, 2021 through January 31, 2022. The contract provides Ireland Re with up to €210 million of reinsurance coverage for each catastrophe occurrence above €18 million. Ireland Re paid Everest Re €14 million for this coverage. This agreement was most recently renewed effective February 1, 2024. Everest Re entered into a catastrophe excess of loss reinsurance contract with Ireland Re, effective March 31, 2023 through January 31, 2024. The contract provides Ireland Re with up to €61 million of reinsurance coverage for each catastrophe occurrence above €139 million. Ireland Re paid Everest Re €2 million for this coverage. This agreement was not renewed for 2024. Everest Re had quota share reinsurance agreements in place with Bermuda Re from 2002 through the end of 2017. Quota share percentages ranged from 20% to 60% depending on the year. As of December 31, 2017, the quota share reinsurance agreements between Everest Re and Bermuda Re were not renewed and the existing quota share were put into run-off. As of March 31, 2024 and December 31, 2023, Everest Re had reinsurance recoverables on unpaid losses of $718 million and $759 million in connection with these agreements. Everest Re - Canadian Branch had quota share reinsurance agreements in place with Bermuda Re from 2007 through the end of 2017. Quota share percentages ranged from 60% to 75% depending on the year. As of December 31, 2017, the quota share reinsurance agreements between Everest Re - Canadian Branch and Bermuda Re were not renewed and the existing quota share were put into run-off. As of March 31, 2024 and as of December 31, 2023, Everest Re had reinsurance recoverables on unpaid losses of $41 million and $45 million in connection with these agreements. Everest Re had quota share reinsurance agreements in place with Everest International Reinsurance, Ltd. (“EIR”) from 2004 through the end of 2009. Quota share percentages ranged from 2% to 8% depending on the year. As of December 31, 2009, the quota share reinsurance agreements between Everest Re and EIR were not renewed and the existing quota share were put into run-off. As of March 31, 2024 and as of December 31, 2023, Everest Re had reinsurance recoverables on unpaid losses of $7 million and $7 million in connection with these agreements. The table below represents loss portfolio transfer (“LPT”) reinsurance agreements whereby net insurance exposures and reserves were transferred to an affiliate: (Dollars in millions) Effective Date Transferring Company Assuming Company % of Business or Amount of Transfer Covered Period of Transfer 12/31/2017 Everest Re Bermuda Re $ 970 All years On December 31, 2017, the Company entered into a LPT agreement with Bermuda Re. The LPT agreement covers subject loss reserves of $2.3 billion for accident years 2017 and prior. As a result of the LPT agreement, the Company transferred $1.0 billion of cash and fixed maturity securities and transferred $970 million of loss reserves to Bermuda Re. As part of the LPT agreement, Bermuda Re will provide an additional $500 million of adverse development coverage on the subject loss reserves. As of March 31, 2024 and December 31, 2023, the Company has a reinsurance recoverable of $807 million and $807 million, respectively, recorded on its balance sheet due from Bermuda Re. The following tables summarize the significant premiums and losses ceded and assumed by the Company in transactions with affiliated entities for the periods indicated: Bermuda Re Three Months Ended (Dollars in millions) 2024 2023 Ceded written premiums $ 116 $ 106 Ceded earned premiums 116 106 Ceded losses and LAE 2 (4) The following table summarizes the premiums and losses that are ceded by the Company to Mt. Logan Re segregated accounts: Mt. Logan Re Segregated Accounts Three Months Ended (Dollars in millions) 2024 2023 Ceded written premiums $ 71 $ 42 Ceded earned premiums 70 38 Ceded losses and LAE 19 13 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company is domiciled in the United States and has subsidiaries domiciled within the United States with significant branches in Canada and Singapore. The Company’s non-U.S. branches are subject to income taxation at varying rates in their respective domiciles. The Company generally applies the estimated annual effective tax rate (“AETR”) approach for calculating its tax provision for interim periods as prescribed by ASC 740-270, Interim Reporting. Under the estimated AETR approach, the estimated AETR is applied to the interim year-to-date pre-tax income/(loss) to determine the income tax expense or benefit for the year-to-date period. The tax expense or benefit for the quarter represents the difference between the year-to-date tax expense or benefit for the current year-to-date period less such amount for the immediately preceding year-to-date period. Management considers the impact of all known events in its estimation of the Company’s annual pre-tax income/(loss) and AETR. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The Company has evaluated known recognized and non-recognized subsequent events. The Company does not have any subsequent events to report. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The unaudited consolidated financial statements of the Company as of March 31, 2024 and December 31, 2023 and for the three months ended March 31, 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 months ended March 31, 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 | The Company did not adopt any new accounting standards that had a material impact during the three months ended March 31, 2024. Future Adoption of Recently Issued Accounting Standard Changes. The Company assessed the adoption impacts of recently issued accounting standards that are effective after 2024 by the Financial Accounting Standards Board (“FASB”) on the Company’s consolidated financial statements. Additionally, the Company assessed whether there have been material updates to previously issued accounting standards that are effective after 2024. There were no accounting standards identified, other than those directly referenced below, that are expected to have a material impact on Holdings. Improvements to Income Tax Disclosures. In December 2023, the Financial Accounting Standards Board issued Accounting Standard Update No. 2023-09, which requires expanded income tax disclosures, including the disaggregation of existing disclosures related to the tax rate reconciliation and income taxes paid. The guidance is effective for annual periods beginning after December 15, 2024. Prospective application is required, with retrospective application permitted. The Company is currently evaluating the effect the updated guidance will have on the Company's financial statement disclosures. |
Fair Value Measurement | GAAP guidance regarding fair value measurements 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 a nationally recognized source. Fixed maturity securities listed in the tables have been categorized as Level 2, since a particular security may not have traded but the pricing services are able to use valuation models with observable market inputs such as interest rate yield curves and prices for similar fixed maturity securities in terms of issuer, maturity and seniority. For foreign government securities and foreign corporate securities, the fair values provided by the third-party pricing services in local currencies, and where applicable, are converted to U.S. dollars using currency exchange rates from nationally recognized sources. In addition, some of the fixed maturities with fair values categorized as Level 3 result when prices are not available from the nationally recognized pricing services and are obtained from investment managers and are derived using unobservable inputs. The Company will value the securities with unobservable inputs using comparable market information or receive fair values from investment managers. The investment managers may obtain non-binding price quotes for the securities from brokers. The single broker quotes are provided by market makers or broker-dealers who are recognized as market participants in the markets in which they are providing the quotes. The prices received from brokers are reviewed for reasonableness by the third-party asset managers and the Company. If the broker quotes are for foreign denominated securities, the quotes are converted to U.S. dollars using currency exchange rates from nationally recognized sources. The composition and valuation inputs for the presented fixed maturities categories Level 1 and Level 2 are as follows: • U.S. Treasury securities and obligations of U.S. government agencies and corporations are primarily comprised of U.S. Treasury bonds, and the fair value is based on observable market inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields; • Obligations of U.S. states and political subdivisions are comprised of state and municipal bond issuances, and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads; • Corporate securities are primarily comprised of U.S. corporate and public utility bond issuances, and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads; • Asset-backed and mortgage-backed securities fair values are based on observable inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields and cash flow models using observable inputs such as prepayment speeds, collateral performance and default spreads; • Foreign government securities are comprised of global non-U.S. sovereign bond issuances, and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source; • Foreign corporate securities are comprised of global non-U.S. corporate bond issuances, and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source. Other invested assets, at fair value, were categorized as Level 3 at March 31, 2024 and December 31, 2023, since it represented a privately placed convertible preferred stock issued by an affiliate. The stock was received in exchange for shares of the Company’s parent. The 25 year redeemable, convertible preferred stock with a 1.75% coupon is valued using a pricing model. The pricing model includes observable inputs such as the U.S. Treasury yield curve rate T note constant maturity 10 year and the swap rate on the Company’s June 1, 2044, 4.868% senior notes, with adjustments to reflect the Company’s own assumptions about the inputs that market participants would use in pricing the asset. |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 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 following tables show 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 March 31, 2024 (Dollars in millions) Amortized Allowances for Unrealized Unrealized Fair Fixed maturity securities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 263 $ — $ — $ (18) $ 245 Obligations of U.S. states and political subdivisions 125 — 1 (10) 115 Corporate securities 4,667 (45) 67 (157) 4,532 Asset-backed securities 4,964 — 25 (29) 4,960 Mortgage-backed securities Commercial 567 — — (49) 519 Agency residential 2,512 — 16 (150) 2,377 Non-agency residential 663 — 8 (4) 667 Foreign government securities 963 — 7 (48) 922 Foreign corporate securities 1,808 — 25 (85) 1,748 Total fixed maturity securities - available for sale $ 16,532 $ (46) $ 149 $ (550) $ 16,085 (Some amounts may not reconcile due to rounding.) At December 31, 2023 (Dollars in millions) Amortized Allowances for Unrealized Unrealized Fair Fixed maturity securities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 265 $ — $ — $ (17) $ 247 Obligations of U.S. states and political subdivisions 138 — 1 (11) 128 Corporate securities 4,400 (47) 96 (160) 4,289 Asset-backed securities 5,307 — 23 (48) 5,282 Mortgage-backed securities Commercial 575 — — (53) 522 Agency residential 2,532 — 27 (124) 2,435 Non-agency residential 429 — 14 (1) 441 Foreign government securities 859 — 15 (39) 835 Foreign corporate securities 1,800 — 35 (82) 1,753 Total fixed maturity securities - available for sale $ 16,304 $ (48) $ 212 $ (536) $ 15,932 (Some amounts may not reconcile due to rounding.) 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 March 31, 2024 (Dollars in millions) Amortized Allowances for Unrealized Unrealized Fair Fixed maturity securities - held to maturity Corporate securities $ 175 $ (2) $ 5 $ (4) $ 173 Asset-backed securities 566 (5) 4 (9) 556 Mortgage-backed securities Commercial 21 — — — 21 Foreign corporate securities 84 (1) 6 — 89 Total fixed maturity securities - held to maturity $ 846 $ (9) $ 15 $ (13) $ 839 (Some amounts may not reconcile due to rounding.) At December 31, 2023 (Dollars in millions) Amortized Allowances for Unrealized Unrealized Fair Fixed maturity securities - held to maturity Corporate securities $ 150 $ (2) $ 1 $ (3) $ 146 Asset-backed securities 604 (5) 4 (10) 593 Mortgage-backed securities Commercial 21 — — — 21 Foreign corporate securities 84 (1) 7 — 90 Total fixed maturity securities - held to maturity $ 859 $ (8) $ 12 $ (13) $ 850 (Some amounts may not reconcile due to rounding.) |
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 March 31, 2024 At December 31, 2023 (Dollars in millions) Amortized Fair Amortized Fair Fixed maturity securities - available for sale Due in one year or less $ 550 $ 539 $ 546 $ 537 Due after one year through five years 2,472 2,365 2,402 2,310 Due after five years through ten years 3,129 3,037 2,842 2,784 Due after ten years 1,676 1,621 1,672 1,621 Asset-backed securities 4,964 4,960 5,307 5,282 Mortgage-backed securities Commercial 567 519 575 522 Agency residential 2,512 2,377 2,532 2,435 Non-agency residential 663 667 429 441 Total fixed maturity securities - available for sale $ 16,532 $ 16,085 $ 16,304 $ 15,932 (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 March 31, 2024 At December 31, 2023 (Dollars in millions) Amortized Fair Amortized Fair Fixed maturity securities - held to maturity Due in one year or less $ 10 $ 10 $ 5 $ 5 Due after one year through five years 54 54 59 58 Due after five years through ten years 43 41 43 42 Due after ten years 152 157 127 131 Asset-backed securities 566 556 604 593 Mortgage-backed securities Commercial 21 21 21 21 Total fixed maturity securities - held to maturity $ 846 $ 839 $ 859 $ 850 (Some amounts may not reconcile due to rounding.) |
Schedule of Changes in Net Unrealized Appreciation (Depreciation) for Investments | The changes in net URA(D) for the Company’s investments are as follows: Three Months Ended (Dollars in millions) 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 $ (74) $ 153 Change in URA(D), pre-tax (74) 153 Deferred tax benefit (expense) 16 (32) Change in URA(D), net of deferred taxes, included in stockholder's equity $ (59) $ 121 (Some amounts may not reconcile due to rounding.) |
Schedule of Aggregate Fair Value and Gross Unrealized Depreciation of Fixed Maturity Securities - Available for Sale, by Security Type | The tables below display the aggregate fair value and gross unrealized depreciation of fixed maturity securities - available for sale by security type and contractual maturity, in each case subdivided according to length of time that individual securities had been in a continuous unrealized loss position for the periods indicated: Duration of Unrealized Loss at March 31, 2024 By Security Type Less than 12 months Greater than 12 months Total (Dollars in millions) Fair Gross Fair Gross Fair Gross Fixed maturity securities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 4 $ — $ 238 $ (18) $ 242 $ (18) Obligations of U.S. states and political subdivisions 8 — 63 (9) 71 (10) Corporate securities 1,125 (32) 1,251 (124) 2,376 (156) Asset-backed securities 328 (2) 895 (27) 1,223 (29) Mortgage-backed securities Commercial 17 — 482 (48) 499 (49) Agency residential 594 (8) 1,017 (143) 1,611 (150) Non-agency residential 210 (4) 3 — 213 (4) Foreign government securities 160 (2) 445 (46) 605 (48) Foreign corporate securities 288 (2) 766 (82) 1,054 (85) Total 2,735 (50) 5,160 (499) 7,895 (549) Securities where an allowance for credit loss was recorded 33 (1) 2 — 35 (1) Total fixed maturity securities - available for sale $ 2,768 $ (51) $ 5,161 $ (499) $ 7,930 $ (550) (Some amounts may not reconcile due to rounding.) The tables below display the aggregate fair value and gross unrealized depreciation of fixed maturity securities - available for sale, by security type and contractual maturity, in each case subdivided according to length of time that individual securities had been in a continuous unrealized loss position for the periods indicated: Duration of Unrealized Loss at December 31, 2023 By Security Type Less than 12 months Greater than 12 months Total (Dollars in millions) Fair Gross Fair Gross Fair Gross Fixed maturity securities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 7 $ — $ 238 $ (17) $ 245 $ (17) Obligations of U.S. states and political subdivisions 3 — 74 (11) 77 (11) Corporate securities 673 (47) 1,150 (112) 1,822 (160) Asset-backed securities 179 (2) 1,958 (46) 2,138 (48) Mortgage-backed securities Commercial 19 — 491 (53) 511 (53) Agency residential 203 (2) 1,030 (123) 1,233 (124) Non-agency residential 125 (1) 3 — 128 (1) Foreign government securities 38 (1) 423 (38) 461 (39) Foreign corporate securities 120 (2) 821 (80) 940 (82) Total $ 1,367 $ (54) $ 6,187 $ (481) $ 7,554 $ (536) Securities where an allowance for credit loss was recorded 2 (1) — — 2 (1) Total fixed maturity securities - available for sale $ 1,369 $ (55) $ 6,187 $ (481) $ 7,556 $ (536) (Some amounts may not reconcile due to rounding.) |
Schedule of Aggregate Fair Value and Gross Unrealized Depreciation of Fixed Maturity Securities - Available for Sale, by Contractual Maturity | Duration of Unrealized Loss at March 31, 2024 By Maturity Less than 12 months Greater than 12 months Total (Dollars in millions) Fair Gross Fair Gross Fair Gross Fixed maturity securities - available for sale Due in one year or less $ 81 $ (1) $ 277 $ (10) $ 358 $ (11) Due in one year through five years 311 (3) 1,337 (108) 1,648 (111) Due in five years through ten years 650 (7) 932 (134) 1,581 (141) Due after ten years 545 (25) 217 (28) 762 (53) Asset-backed securities 328 (2) 895 (27) 1,223 (29) Mortgage-backed securities 821 (12) 1,502 (192) 2,323 (203) Total 2,735 (50) 5,160 (499) 7,895 (549) Securities where an allowance for credit loss was recorded 33 (1) 2 — 35 (1) Total fixed maturity securities - available for sale $ 2,768 $ (51) $ 5,161 $ (499) $ 7,930 $ (550) (Some amounts may not reconcile due to rounding.) Duration of Unrealized Loss at December 31, 2023 By Maturity Less than 12 months Greater than 12 months Total (Dollars in millions) Fair Gross Fair Gross Fair Gross Fixed maturity securities - available for sale Due in one year or less $ 84 $ (1) $ 263 $ (10) $ 348 $ (11) Due in one year through five years 227 (5) 1,317 (96) 1,544 (101) Due in five years through ten years 150 (5) 951 (128) 1,101 (133) Due after ten years 379 (39) 174 (25) 553 (64) Asset-backed securities 179 (2) 1,958 (46) 2,138 (48) Mortgage-backed securities 347 (3) 1,523 (176) 1,871 (179) Total $ 1,367 $ (54) $ 6,187 $ (481) $ 7,554 $ (536) Securities where an allowance for credit loss was recorded 2 (1) — — 2 (1) Total fixed maturity securities - available for sale $ 1,369 $ (55) $ 6,187 $ (481) $ 7,556 $ (536) (Some amounts may not reconcile due to rounding.) |
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 (Dollars in millions) 2024 2023 Fixed maturities $ 245 $ 174 Equity securities 1 1 Short-term investments and cash 22 11 Other invested assets Limited partnerships 24 (24) Dividends from preferred shares of affiliate 8 8 Other 20 22 Gross investment income before adjustments 319 192 Funds held interest income (expense) 4 3 Interest income from Group — 5 Gross investment income 323 200 Investment expenses 11 10 Net investment income $ 312 $ 190 (Some amounts may not reconcile due to rounding.) |
Schedule of Components of Net Gains (Losses) on Investments | The components of net gains (losses) on investments are presented in the table below for the periods indicated: Three Months Ended (Dollars in millions) 2024 2023 Fixed maturity securities Allowances for credit losses $ 1 $ (10) Net realized gains (losses) from dispositions (5) (1) Equity securities, fair value Net realized gains (losses) from dispositions 1 7 Gains (losses) from fair value adjustments (1) 3 Other invested assets — — Other invested assets, fair value Gains (losses) from fair value adjustments (3) 24 Short-term investment gains (losses) — — Total net gains (losses) on investments $ (8) $ 22 (Some amounts may not reconcile due to rounding.) |
Schedule of Fixed Maturities, Allowance for Credit Loss, Available-for-Sale Rollforward | The following tables provide a roll forward of the Company’s beginning and ending balance of allowance for credit losses for the periods indicated: Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale Three Months Ended March 31, 2024 Corporate Foreign Total (Dollars in millions) Beginning balance $ (47) $ — $ (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 2 — 2 Balance, end of period $ (45) $ — $ (46) (Some amounts may not reconcile due to rounding.) Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale Three Months Ended March 31, 2023 (Dollars in millions) Corporate Foreign Total Beginning balance $ (45) $ (1) $ (46) Credit losses on securities where credit losses were not previously recorded (12) — (12) Increases in allowance on previously impaired securities — — — Decreases in allowance on previously impaired securities — — — Reduction in allowance due to disposals 2 — 2 Balance, end of period $ (55) $ (1) $ (56) (Some amounts may not reconcile due to rounding.) |
Schedule of Fixed Maturities, Allowance for Credit Loss, Held-to-Maturity Rollforward | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity Three Months Ended March 31, 2024 Corporate Asset Backed Foreign Total (Dollars in millions) Beginning balance $ (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 — — — — Balance, end of period $ (2) $ (5) $ (1) $ (9) (Some amounts may not reconcile due to rounding.) Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity Three Months Ended March 31, 2023 (Dollars in millions) Corporate Asset Foreign Total Beginning balance $ (2) $ (6) $ (1) $ (9) Credit losses on securities where credit losses were not previously recorded — — — — Increases in allowance on previously impaired securities — — — — Decreases in allowance on previously impaired securities — — — — Reduction in allowance due to disposals — — — — Balance, end of period $ (2) $ (6) $ (1) $ (9) (Some amounts may not reconcile due to rounding.) |
Schedule of Gross Gains (Losses) from Dispositions of Fixed Maturity and Equity Securities | The proceeds and split between gross gains and losses from sales of fixed maturity securities - available for sale and equity securities are presented in the table below for the periods indicated: Three Months Ended (Dollars in millions) 2024 2023 Proceeds from sales of fixed maturity securities - available for sale $ 346 $ 49 Gross gains from dispositions 8 3 Gross losses from dispositions (14) (4) Proceeds from sales of equity securities $ — $ 46 Gross gains from dispositions 1 7 Gross losses from dispositions — — (Some amounts may not reconcile due to rounding.) |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurement Levels for all Assets, Recorded at Fair Value | The following tables present the fair value measurement levels for all assets, which the Company has recorded at fair value as of the periods indicated: Fair Value Measurement Using (Dollars in millions) March 31, 2024 Quoted Prices Significant Significant Assets: Fixed maturities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 245 $ — $ 245 $ — Obligations of U.S. states and political subdivisions 115 — 115 — Corporate securities 4,532 — 3,912 620 Asset-backed securities 4,960 — 3,620 1,340 Mortgage-backed securities Commercial 519 — 519 — Agency residential 2,377 — 2,377 — Non-agency residential 667 — 667 — Foreign government securities 922 — 922 — Foreign corporate securities 1,748 — 1,732 16 Total fixed maturities - available for sale 16,085 — 14,109 1,976 Equity securities, fair value 89 69 20 — Other invested assets, fair value 1,478 — — 1,478 (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 $ 247 $ — $ 247 $ — Obligations of U.S. states and political subdivisions 128 — 128 — Corporate securities 4,289 — 3,617 672 Asset-backed securities 5,282 — 3,977 1,305 Mortgage-backed securities Commercial 522 — 522 — Agency residential 2,435 — 2,435 — Non-agency residential 441 — 441 — Foreign government securities 835 — 835 — Foreign corporate securities 1,753 — 1,737 16 Total fixed maturities - available for sale 15,932 — 13,939 1,993 Equity securities, fair value 91 70 21 — Other invested assets, fair value 1,481 — — 1,481 (Some amounts may not reconcile due to rounding.) |
Schedule of Activity Under Level 3, Fair Value Measurements Using Significant Unobservable Inputs for Fixed Maturities - Available for Sale | 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 March 31, 2024 (Dollars in millions) Corporate Asset Backed Foreign Total Beginning balance of fixed maturities $ 672 $ 1,305 $ 16 $ 1,993 Total gains or (losses) (realized/unrealized) Included in earnings (or changes in net assets) 1 — — 1 Included in other comprehensive income (loss) — 7 — 7 Purchases, issuances and settlements (52) 28 (1) (25) Transfers in/(out) of Level 3 and reclassification of securities in/(out) investment categories — — — — Ending balance $ 620 $ 1,340 $ 16 $ 1,976 The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date $ 1 $ — $ — $ 1 (Some amounts may not reconcile due to rounding.) Total Fixed Maturities - Available for Sale Three Months Ended March 31, 2023 (Dollars in millions) Corporate Asset Backed Foreign Total Beginning balance of fixed maturities $ 715 $ 994 $ 16 $ 1,725 Total gains or (losses) (realized/unrealized) Included in earnings (or changes in net assets) 1 — — 1 Included in other comprehensive income (loss) (4) 18 — 14 Purchases, issuances and settlements (3) 9 — 5 Transfers in/(out) of Level 3 and reclassification of securities in/(out) investment categories — — — — Ending balance $ 709 $ 1,020 $ 16 $ 1,745 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.) |
RESERVES FOR LOSSES AND LAE (Ta
RESERVES FOR LOSSES AND LAE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Insurance [Abstract] | |
Schedule of Activity in the Reserve for Losses and Loss Adjustment Expenses (“LAE”) | The following table provides a roll forward of the Company’s beginning and ending reserves for losses and loss adjustment expenses (“LAE”) and is summarized for the periods indicated: Three Months Ended (Dollars in millions) 2024 2023 Gross reserve beginning of period $ 15,796 $ 14,977 Less reinsurance recoverables on unpaid losses (3,182) (3,684) Net reserves beginning of period 12,614 11,294 Incurred related to: Current year 1,399 1,403 Prior years (24) (9) Total incurred losses and LAE 1,375 1,394 Paid related to: Current year 199 585 Prior years 910 379 Total paid losses and LAE 1,109 964 Foreign exchange/translation adjustment (29) 5 Net reserves end of period 12,851 11,729 Plus reinsurance recoverables on unpaid losses 3,098 3,586 Gross reserves end of period $ 15,949 $ 15,315 (Some amounts may not reconcile due to rounding.) |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Underwriting Results for Operating Segments | The following tables present the underwriting results for the operating segments for the periods indicated: Three Months Ended March 31, 2024 (Dollars in millions) Reinsurance Insurance Total Gross written premiums $ 1,935 $ 837 $ 2,772 Net written premiums 1,624 642 2,266 Premiums earned $ 1,558 $ 672 $ 2,231 Incurred losses and LAE 932 443 1,375 Commission and brokerage 402 70 472 Other underwriting expenses 46 100 146 Underwriting gain (loss) $ 178 $ 59 $ 237 Net investment income 312 Net gains (losses) on investments (8) Corporate expenses (5) Interest, fees and bond issue cost amortization expense (37) Other income (expense) 7 Income (loss) before taxes $ 507 (Some amounts may not reconcile due to rounding) Three Months Ended March 31, 2023 (Dollars in millions) Reinsurance Insurance Total Gross written premiums $ 1,627 $ 869 $ 2,496 Net written premiums 1,357 706 2,063 Premiums earned $ 1,351 $ 718 $ 2,068 Incurred losses and LAE 919 475 1,394 Commission and brokerage 357 80 436 Other underwriting expenses 38 101 139 Underwriting gain (loss) $ 36 $ 63 $ 99 Net investment income 190 Net gains (losses) on investments 22 Corporate expenses (6) Interest, fees and bond issue cost amortization expense (32) Other income (expense) (4) Income (loss) before taxes $ 269 (Some amounts may not reconcile due to rounding) |
SENIOR NOTES (Tables)
SENIOR NOTES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Senior Notes [Abstract] | |
Schedule of Outstanding Senior Notes | The table below displays Holdings’ outstanding senior notes. Fair value is based on quoted market prices, but due to limited trading activity, these senior notes are considered Level 2 in the fair value hierarchy. March 31, 2024 December 31, 2023 (Dollars in millions) Date Issued Date Due Principal Consolidated Fair Consolidated Fair 4.868% Senior notes 6/5/2014 6/1/2044 $ 400 $ 398 $ 363 $ 398 $ 369 3.5% Senior notes 10/7/2020 10/15/2050 1,000 981 702 981 742 3.125% Senior notes 10/4/2021 10/15/2052 1,000 970 648 970 688 $ 2,400 $ 2,349 $ 1,713 $ 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 these senior notes is as follows for the periods indicated: Three Months Ended (Dollars in millions) Interest Paid Payable Dates 2024 2023 4.868% Senior notes semi-annually June 1/December 1 $ 5 $ 5 3.5% Senior notes semi-annually April 15/October 15 9 9 3.125% Senior notes semi-annually April 15/October 15 8 8 $ 22 $ 22 (Some amounts may not reconcile due to rounding.) |
LONG-TERM SUBORDINATED NOTES (T
LONG-TERM SUBORDINATED NOTES (Tables) | 3 Months Ended |
Mar. 31, 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. March 31, 2024 December 31, 2023 Original Maturity Date Consolidated Fair Consolidated Fair (Dollars in millions) Date Issued Scheduled Final Long-term subordinated notes 4/26/2007 $ 400 5/15/2037 5/1/2067 $ 218 $ 205 $ 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 (Dollars in millions) 2024 2023 Interest expense incurred $ 4 $ 4 |
COLLATERALIZED REINSURANCE, T_2
COLLATERALIZED REINSURANCE, TRUST AGREEMENTS AND OTHER RESTRICTED ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Collateralized Reinsurance And Trust Agreements [Abstract] | |
Schedule of Restricted Assets | The following table summarizes the Company’s restricted assets: (Dollars in millions) March 31, 2024 December 31, 2023 Collateral in trust for non-affiliated agreements (1) $ 764 $ 825 Collateral for FHLB borrowings 1,067 1,077 Securities on deposit with or regulated by government authorities 1,415 1,447 Funds held by reinsureds 313 306 Total restricted assets $ 3,559 $ 3,654 (1) At March 31, 2024 and December 31, 2023 the total amount on deposit in the trust account includes $121 million and $116 million of restricted cash, respectively. |
Schedule of Collateralized Reinsurance Agreements | The table below summarizes the various agreements: (Dollars in millions) Class Description Effective Date Expiration Date Limit Coverage 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 Total available limit as of March 31, 2024 $ 1,375 |
OTHER COMPREHENSIVE INCOME (L_2
OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Comprehensive Income (Loss), Tax [Abstract] | |
Schedule of Components of Comprehensive Income (Loss) in the Consolidated Statements of Operations | The following tables present the components of comprehensive income (loss) in the consolidated statements of operations for the periods indicated: Three Months Ended March 31, 2024 (Dollars in millions) Before Tax Tax Effect Net of Tax URA(D) on securities - non-credit related $ (78) $ 16 $ (62) Reclassification of net realized losses (gains) included in net income (loss) 4 (1) 3 Foreign currency translation adjustments (24) 5 (19) Reclassification of amortization of net gain (loss) included in net income (loss) 1 — — Total other comprehensive income (loss) $ (98) $ 20 $ (77) (Some amounts may not reconcile due to rounding) Three Months Ended March 31, 2023 (Dollars in millions) Before Tax Tax Effect Net of Tax URA(D) on securities - non-credit related $ 142 $ (30) $ 112 Reclassification of net realized losses (gains) included in net income (loss) 11 (2) 9 Foreign currency translation adjustments 8 (1) 7 Reclassification of amortization of net gain (loss) included in net income (loss) — — — Total other comprehensive income (loss) $ 161 $ (33) $ 128 (Some amounts may not reconcile due to rounding) |
Schedule of Reclassification from Accumulated Other Comprehensive Income | The following table presents details of the amounts reclassified from AOCI for the periods indicated: Three Months Ended Affected line item within the AOCI component 2024 2023 (Dollars in millions) URA(D) on securities $ 4 $ 11 Other net gains (losses) on investments (1) (2) Income tax expense (benefit) $ 3 $ 9 Net income (loss) Benefit plan net gain (loss) $ 1 $ — Other underwriting expenses — — Income tax expense (benefit) $ — $ — Net income (loss) (Some amounts may not reconcile due to rounding) |
Schedule of Components of Accumulated Other Comprehensive Income (Loss), Net of Tax, in the Consolidated Balance Sheets | The following table presents the components of accumulated other comprehensive income (loss), net of tax, in the consolidated balance sheets for the periods indicated: Three Months Ended (Dollars in millions) 2024 2023 Beginning balance of URA(D) on securities $ (289) $ (816) Current period change in URA(D) of investments - non-credit related (59) 121 Ending balance of URA(D) on securities (348) (695) Beginning balance of foreign currency translation adjustments 19 1 Current period change in foreign currency translation adjustments (19) 7 Ending balance of foreign currency translation adjustments — 8 Beginning balance of benefit plan net gain (loss) (16) (33) Current period change in benefit plan net gain (loss) — — Ending balance of benefit plan net gain (loss) (16) (33) Ending balance of accumulated other comprehensive income (loss) $ (364) $ (720) (Some amounts may not reconcile due to rounding.) |
RELATED-PARTY TRANSACTIONS (Tab
RELATED-PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Schedule of Dividends Received on Preferred Shares | The following table presents the dividends received on the preferred shares of Preferred Holdings that are reported as net investment income in the consolidated statements of operations and comprehensive income (loss) for the period indicated: Three Months Ended (Dollars in millions) 2024 2023 Dividends received on preferred stock of affiliate $ 8 $ 8 |
Schedule of Loss Portfolio Transfer Reinsurance Agreements, Net Insurance Exposures and Reserves were Transferred to an Affiliate | The table below represents loss portfolio transfer (“LPT”) reinsurance agreements whereby net insurance exposures and reserves were transferred to an affiliate: (Dollars in millions) Effective Date Transferring Company Assuming Company % of Business or Amount of Transfer Covered Period of Transfer 12/31/2017 Everest Re Bermuda Re $ 970 All years |
Schedule of Premiums and Losses Ceded by Company to Affiliate | The following tables summarize the significant premiums and losses ceded and assumed by the Company in transactions with affiliated entities for the periods indicated: Bermuda Re Three Months Ended (Dollars in millions) 2024 2023 Ceded written premiums $ 116 $ 106 Ceded earned premiums 116 106 Ceded losses and LAE 2 (4) The following table summarizes the premiums and losses that are ceded by the Company to Mt. Logan Re segregated accounts: Mt. Logan Re Segregated Accounts Three Months Ended (Dollars in millions) 2024 2023 Ceded written premiums $ 71 $ 42 Ceded earned premiums 70 38 Ceded losses and LAE 19 13 |
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 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Fixed maturity securities - available for sale | ||||
Amortized Cost | $ 16,532 | $ 16,304 | ||
Allowances for Credit Losses | (46) | (48) | $ (56) | $ (46) |
Unrealized Appreciation | 149 | 212 | ||
Unrealized Depreciation | (550) | (536) | ||
Fair Value | 16,085 | 15,932 | ||
Fixed maturity securities - held to maturity | ||||
Amortized Cost | 846 | 859 | ||
Allowances for Credit Loss | (9) | (8) | (9) | (9) |
Unrealized Appreciation | 15 | 12 | ||
Unrealized Depreciation | (13) | (13) | ||
Fair Value | 839 | 850 | ||
U.S. Treasury securities and obligations of U.S. government agencies and corporations | ||||
Fixed maturity securities - available for sale | ||||
Amortized Cost | 263 | 265 | ||
Allowances for Credit Losses | 0 | 0 | ||
Unrealized Appreciation | 0 | 0 | ||
Unrealized Depreciation | (18) | (17) | ||
Fair Value | 245 | 247 | ||
Obligations of U.S. states and political subdivisions | ||||
Fixed maturity securities - available for sale | ||||
Amortized Cost | 125 | 138 | ||
Allowances for Credit Losses | 0 | 0 | ||
Unrealized Appreciation | 1 | 1 | ||
Unrealized Depreciation | (10) | (11) | ||
Fair Value | 115 | 128 | ||
Corporate securities | ||||
Fixed maturity securities - available for sale | ||||
Amortized Cost | 4,667 | 4,400 | ||
Allowances for Credit Losses | (45) | (47) | (55) | (45) |
Unrealized Appreciation | 67 | 96 | ||
Unrealized Depreciation | (157) | (160) | ||
Fair Value | 4,532 | 4,289 | ||
Fixed maturity securities - held to maturity | ||||
Amortized Cost | 175 | 150 | ||
Allowances for Credit Loss | (2) | (2) | (2) | (2) |
Unrealized Appreciation | 5 | 1 | ||
Unrealized Depreciation | (4) | (3) | ||
Fair Value | 173 | 146 | ||
Asset-backed securities | ||||
Fixed maturity securities - available for sale | ||||
Amortized Cost | 4,964 | 5,307 | ||
Allowances for Credit Losses | 0 | 0 | ||
Unrealized Appreciation | 25 | 23 | ||
Unrealized Depreciation | (29) | (48) | ||
Fair Value | 4,960 | 5,282 | ||
Fixed maturity securities - held to maturity | ||||
Amortized Cost | 566 | 604 | ||
Allowances for Credit Loss | (5) | (5) | (6) | (6) |
Unrealized Appreciation | 4 | 4 | ||
Unrealized Depreciation | (9) | (10) | ||
Fair Value | 556 | 593 | ||
Commercial | ||||
Fixed maturity securities - available for sale | ||||
Amortized Cost | 567 | 575 | ||
Allowances for Credit Losses | 0 | 0 | ||
Unrealized Appreciation | 0 | 0 | ||
Unrealized Depreciation | (49) | (53) | ||
Fair Value | 519 | 522 | ||
Fixed maturity securities - held to maturity | ||||
Amortized Cost | 21 | 21 | ||
Allowances for Credit Loss | 0 | 0 | ||
Unrealized Appreciation | 0 | 0 | ||
Unrealized Depreciation | 0 | 0 | ||
Fair Value | 21 | 21 | ||
Agency residential | ||||
Fixed maturity securities - available for sale | ||||
Amortized Cost | 2,512 | 2,532 | ||
Allowances for Credit Losses | 0 | 0 | ||
Unrealized Appreciation | 16 | 27 | ||
Unrealized Depreciation | (150) | (124) | ||
Fair Value | 2,377 | 2,435 | ||
Non-agency residential | ||||
Fixed maturity securities - available for sale | ||||
Amortized Cost | 663 | 429 | ||
Allowances for Credit Losses | 0 | 0 | ||
Unrealized Appreciation | 8 | 14 | ||
Unrealized Depreciation | (4) | (1) | ||
Fair Value | 667 | 441 | ||
Foreign government securities | ||||
Fixed maturity securities - available for sale | ||||
Amortized Cost | 963 | 859 | ||
Allowances for Credit Losses | 0 | 0 | ||
Unrealized Appreciation | 7 | 15 | ||
Unrealized Depreciation | (48) | (39) | ||
Fair Value | 922 | 835 | ||
Foreign corporate securities | ||||
Fixed maturity securities - available for sale | ||||
Amortized Cost | 1,808 | 1,800 | ||
Allowances for Credit Losses | 0 | 0 | (1) | (1) |
Unrealized Appreciation | 25 | 35 | ||
Unrealized Depreciation | (85) | (82) | ||
Fair Value | 1,748 | 1,753 | ||
Fixed maturity securities - held to maturity | ||||
Amortized Cost | 84 | 84 | ||
Allowances for Credit Loss | (1) | (1) | $ (1) | $ (1) |
Unrealized Appreciation | 6 | 7 | ||
Unrealized Depreciation | 0 | 0 | ||
Fair Value | $ 89 | $ 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 | Mar. 31, 2024 | Dec. 31, 2023 |
Amortized Cost | ||
Due in one year or less | $ 550 | $ 546 |
Due after one year through five years | 2,472 | 2,402 |
Due after five years through ten years | 3,129 | 2,842 |
Due after ten years | 1,676 | 1,672 |
Amortized Cost | 16,532 | 16,304 |
Fair Value | ||
Due in one year or less | 539 | 537 |
Due after one year through five years | 2,365 | 2,310 |
Due after five years through ten years | 3,037 | 2,784 |
Due after ten years | 1,621 | 1,621 |
Fair Value | 16,085 | 15,932 |
Amortized Cost | ||
Due in one year or less | 10 | 5 |
Due after one year through five years | 54 | 59 |
Due after five years through ten years | 43 | 43 |
Due after ten years | 152 | 127 |
Amortized Cost | 846 | 859 |
Fair Value | ||
Due in one year or less | 10 | 5 |
Due after one year through five years | 54 | 58 |
Due after five years through ten years | 41 | 42 |
Due after ten years | 157 | 131 |
Fair Value | 839 | 850 |
Asset-backed securities | ||
Amortized Cost | ||
Amortized Cost | 4,964 | 5,307 |
Fair Value | ||
Fair Value | 4,960 | 5,282 |
Amortized Cost | ||
Amortized Cost | 566 | 604 |
Fair Value | ||
Fair Value | 556 | 593 |
Commercial | ||
Amortized Cost | ||
Amortized Cost | 567 | 575 |
Fair Value | ||
Fair Value | 519 | 522 |
Amortized Cost | ||
Amortized Cost | 21 | 21 |
Fair Value | ||
Fair Value | 21 | 21 |
Agency residential | ||
Amortized Cost | ||
Amortized Cost | 2,512 | 2,532 |
Fair Value | ||
Fair Value | 2,377 | 2,435 |
Non-agency residential | ||
Amortized Cost | ||
Amortized Cost | 663 | 429 |
Fair Value | ||
Fair Value | $ 667 | $ 441 |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 USD ($) security | Dec. 31, 2023 USD ($) security | |
Debt Securities, Available-for-Sale [Line Items] | ||
Fair value of investments in unrealized loss position | $ 7,930 | $ 7,556 |
Gross unrealized losses on investments in unrealized loss position | 550 | 536 |
Fixed maturity securities, duration of unrealized loss, less than 12 months, gross unrealized depreciation | 51 | 55 |
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation | 499 | 481 |
Additional contractual commitments | 1,000 | |
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 | $ 3,300 | $ 3,300 |
Commitments to fund investments | $ 980 | |
Investments, Debt Securities Benchmark | Issuer Concentration Risk | Issuer One | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Percentage of overall fair value of fixed maturity securities available for sale, less than | 1.40% | 1.40% |
Investments, Debt Securities Benchmark | Issuer Concentration Risk | Issuer Two | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Percentage of overall fair value of fixed maturity securities available for sale, less than | 0.50% | 0.50% |
Investment Grade | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Fixed maturity securities, duration of unrealized loss, less than 12 months, gross unrealized depreciation | $ 43 | $ 39 |
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation | 475 | 455 |
Fixed maturities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Fixed maturity securities, duration of unrealized loss, less than 12 months, gross unrealized depreciation | 55 | |
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation | $ 499 | $ 481 |
INVESTMENTS - Schedule of Chang
INVESTMENTS - Schedule of Changes in Net Unrealized Appreciation (Depreciation) for Investments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||
Change in unrealized appreciation (depreciation), pre-tax | $ (74) | $ 153 |
Deferred tax benefit (expense) | 16 | (32) |
Total URA(D) on securities arising during the period | $ (59) | $ 121 |
INVESTMENTS - Schedule of Aggre
INVESTMENTS - Schedule of Aggregate Fair Value and Gross Unrealized Depreciation of Fixed Maturity Securities - Available for Sale, by Security Type (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value | ||
Less than 12 months | $ 2,768 | $ 1,369 |
Greater than 12 months | 5,161 | 6,187 |
Total | 7,930 | 7,556 |
Gross Unrealized Depreciation | ||
Less than 12 months | (51) | (55) |
Greater than 12 months | (499) | (481) |
Total | (550) | (536) |
No Recorded Allowance for Credit Losses | ||
Fair Value | ||
Less than 12 months | 2,735 | 1,367 |
Greater than 12 months | 5,160 | 6,187 |
Total | 7,895 | 7,554 |
Gross Unrealized Depreciation | ||
Less than 12 months | (50) | (54) |
Greater than 12 months | (499) | (481) |
Total | (549) | (536) |
U.S. government agencies and corporations | ||
Fair Value | ||
Less than 12 months | 4 | 7 |
Greater than 12 months | 238 | 238 |
Total | 242 | 245 |
Gross Unrealized Depreciation | ||
Less than 12 months | 0 | 0 |
Greater than 12 months | (18) | (17) |
Total | (18) | (17) |
Obligations of U.S. states and political subdivisions | ||
Fair Value | ||
Less than 12 months | 8 | 3 |
Greater than 12 months | 63 | 74 |
Total | 71 | 77 |
Gross Unrealized Depreciation | ||
Less than 12 months | 0 | 0 |
Greater than 12 months | (9) | (11) |
Total | (10) | (11) |
Corporate securities | ||
Fair Value | ||
Less than 12 months | 1,125 | 673 |
Greater than 12 months | 1,251 | 1,150 |
Total | 2,376 | 1,822 |
Gross Unrealized Depreciation | ||
Less than 12 months | (32) | (47) |
Greater than 12 months | (124) | (112) |
Total | (156) | (160) |
Asset-backed securities | ||
Fair Value | ||
Less than 12 months | 328 | 179 |
Greater than 12 months | 895 | 1,958 |
Total | 1,223 | 2,138 |
Gross Unrealized Depreciation | ||
Less than 12 months | (2) | (2) |
Greater than 12 months | (27) | (46) |
Total | (29) | (48) |
Commercial | ||
Fair Value | ||
Less than 12 months | 17 | 19 |
Greater than 12 months | 482 | 491 |
Total | 499 | 511 |
Gross Unrealized Depreciation | ||
Less than 12 months | 0 | 0 |
Greater than 12 months | (48) | (53) |
Total | (49) | (53) |
Agency residential | ||
Fair Value | ||
Less than 12 months | 594 | 203 |
Greater than 12 months | 1,017 | 1,030 |
Total | 1,611 | 1,233 |
Gross Unrealized Depreciation | ||
Less than 12 months | (8) | (2) |
Greater than 12 months | (143) | (123) |
Total | (150) | (124) |
Non-agency residential | ||
Fair Value | ||
Less than 12 months | 210 | 125 |
Greater than 12 months | 3 | 3 |
Total | 213 | 128 |
Gross Unrealized Depreciation | ||
Less than 12 months | (4) | (1) |
Greater than 12 months | 0 | 0 |
Total | (4) | (1) |
Foreign government securities | ||
Fair Value | ||
Less than 12 months | 160 | 38 |
Greater than 12 months | 445 | 423 |
Total | 605 | 461 |
Gross Unrealized Depreciation | ||
Less than 12 months | (2) | (1) |
Greater than 12 months | (46) | (38) |
Total | (48) | (39) |
Foreign corporate securities | ||
Fair Value | ||
Less than 12 months | 288 | 120 |
Greater than 12 months | 766 | 821 |
Total | 1,054 | 940 |
Gross Unrealized Depreciation | ||
Less than 12 months | (2) | (2) |
Greater than 12 months | (82) | (80) |
Total | (85) | (82) |
Securities where an allowance for credit loss was recorded | ||
Fair Value | ||
Less than 12 months | 33 | 2 |
Greater than 12 months | 2 | 0 |
Total | 35 | 2 |
Gross Unrealized Depreciation | ||
Less than 12 months | (1) | (1) |
Greater than 12 months | 0 | 0 |
Total | $ (1) | $ (1) |
INVESTMENTS - Schedule of Agg_2
INVESTMENTS - Schedule of Aggregate Fair Value and Gross Unrealized Depreciation of Fixed Maturity Securities - Available for Sale, by Contractual Maturity (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value | ||
Less than 12 months | $ 2,768 | $ 1,369 |
Greater than 12 months | 5,161 | 6,187 |
Total | 7,930 | 7,556 |
Gross Unrealized Depreciation | ||
Less than 12 months | (51) | (55) |
Greater than 12 months | (499) | (481) |
Total | (550) | (536) |
No Recorded Allowance for Credit Losses | ||
Fair Value | ||
Less than 12 months | 2,735 | 1,367 |
Greater than 12 months | 5,160 | 6,187 |
Total | 7,895 | 7,554 |
Gross Unrealized Depreciation | ||
Less than 12 months | (50) | (54) |
Greater than 12 months | (499) | (481) |
Total | (549) | (536) |
Due in one year or less | ||
Fair Value | ||
Less than 12 months | 81 | 84 |
Greater than 12 months | 277 | 263 |
Total | 358 | 348 |
Gross Unrealized Depreciation | ||
Less than 12 months | (1) | (1) |
Greater than 12 months | (10) | (10) |
Total | (11) | (11) |
Due in one year through five years | ||
Fair Value | ||
Less than 12 months | 311 | 227 |
Greater than 12 months | 1,337 | 1,317 |
Total | 1,648 | 1,544 |
Gross Unrealized Depreciation | ||
Less than 12 months | (3) | (5) |
Greater than 12 months | (108) | (96) |
Total | (111) | (101) |
Due in five years through ten years | ||
Fair Value | ||
Less than 12 months | 650 | 150 |
Greater than 12 months | 932 | 951 |
Total | 1,581 | 1,101 |
Gross Unrealized Depreciation | ||
Less than 12 months | (7) | (5) |
Greater than 12 months | (134) | (128) |
Total | (141) | (133) |
Due after ten years | ||
Fair Value | ||
Less than 12 months | 545 | 379 |
Greater than 12 months | 217 | 174 |
Total | 762 | 553 |
Gross Unrealized Depreciation | ||
Less than 12 months | (25) | (39) |
Greater than 12 months | (28) | (25) |
Total | (53) | (64) |
Asset-backed securities | ||
Fair Value | ||
Less than 12 months | 328 | 179 |
Greater than 12 months | 895 | 1,958 |
Total | 1,223 | 2,138 |
Gross Unrealized Depreciation | ||
Less than 12 months | (2) | (2) |
Greater than 12 months | (27) | (46) |
Total | (29) | (48) |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 months | 821 | 347 |
Greater than 12 months | 1,502 | 1,523 |
Total | 2,323 | 1,871 |
Gross Unrealized Depreciation | ||
Less than 12 months | (12) | (3) |
Greater than 12 months | (192) | (176) |
Total | (203) | (179) |
Securities where an allowance for credit loss was recorded | ||
Fair Value | ||
Less than 12 months | 33 | 2 |
Greater than 12 months | 2 | 0 |
Total | 35 | 2 |
Gross Unrealized Depreciation | ||
Less than 12 months | (1) | (1) |
Greater than 12 months | 0 | 0 |
Total | $ (1) | $ (1) |
INVESTMENTS - Schedule of Compo
INVESTMENTS - Schedule of Components of Net Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Securities, Available-for-Sale [Line Items] | ||
Gross investment income before adjustments | $ 319 | $ 192 |
Funds held interest income (expense) | 4 | 3 |
Interest income from Group | 0 | 5 |
Gross investment income | 323 | 200 |
Investment expenses | 11 | 10 |
Net investment income | 312 | 190 |
Fixed maturities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Gross investment income before adjustments | 245 | 174 |
Equity securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Gross investment income before adjustments | 1 | 1 |
Short-term investments and cash | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Gross investment income before adjustments | 22 | 11 |
Limited partnerships | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Gross investment income before adjustments | 24 | (24) |
Dividends from preferred shares of affiliate | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Gross investment income before adjustments | 8 | 8 |
Other | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Gross investment income before adjustments | $ 20 | $ 22 |
INVESTMENTS - Schedule of Com_2
INVESTMENTS - Schedule of Components of Net Gains (Losses) on Investments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Securities, Available-for-Sale [Line Items] | ||
Total net gains (losses) on investments | $ (8) | $ 22 |
Fixed maturity securities | Market Value | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Allowances for credit losses | 1 | (10) |
Net realized gains (losses) from dispositions | (5) | (1) |
Equity securities, fair value | Fair Value | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Net realized gains (losses) from dispositions | 1 | 7 |
Gains (losses) from fair value adjustments | (1) | 3 |
Other invested assets | 0 | 0 |
Other invested assets, fair value | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Gains (losses) from fair value adjustments | (3) | 24 |
Short-term investments and cash | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Net realized gains (losses) from dispositions | $ 0 | $ 0 |
INVESTMENTS - Schedule of Fixed
INVESTMENTS - Schedule of Fixed Maturities, Allowance for Credit Loss, Available-for-Sale Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ (48) | $ (46) |
Credit losses on securities where credit losses were not previously recorded | 0 | (12) |
Increases in allowance on previously impaired securities | 0 | 0 |
Decreases in allowance on previously impaired securities | 0 | 0 |
Reduction in allowance due to disposals | 2 | 2 |
Balance, end of period | (46) | (56) |
Corporate Securities | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | (47) | (45) |
Credit losses on securities where credit losses were not previously recorded | 0 | (12) |
Increases in allowance on previously impaired securities | 0 | 0 |
Decreases in allowance on previously impaired securities | 0 | 0 |
Reduction in allowance due to disposals | 2 | 2 |
Balance, end of period | (45) | (55) |
Municipals | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 0 | |
Balance, end of period | 0 | |
Asset Backed Securities | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 0 | |
Balance, end of period | 0 | |
Foreign Corporate Securities | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 0 | (1) |
Credit losses on securities where credit losses were not previously recorded | 0 | 0 |
Increases in allowance on previously impaired securities | 0 | 0 |
Decreases in allowance on previously impaired securities | 0 | 0 |
Reduction in allowance due to disposals | 0 | 0 |
Balance, end of period | $ 0 | $ (1) |
INVESTMENTS - Schedule of Fix_2
INVESTMENTS - Schedule of Fixed Maturities, Allowance for Credit Loss, Held-to-Maturity Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Securities, Held-to-Maturity, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ (8) | $ (9) |
Credit losses on securities where credit losses were not previously recorded | (1) | 0 |
Increases in allowance on previously impaired securities | 0 | 0 |
Decreases in allowance on previously impaired securities | 0 | 0 |
Reduction in allowance due to disposals | 0 | 0 |
Balance, end of period | (9) | (9) |
Corporate Securities | ||
Debt Securities, Held-to-Maturity, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | (2) | (2) |
Credit losses on securities where credit losses were not previously recorded | 0 | 0 |
Increases in allowance on previously impaired securities | 0 | 0 |
Decreases in allowance on previously impaired securities | 0 | 0 |
Reduction in allowance due to disposals | 0 | 0 |
Balance, end of period | (2) | (2) |
Asset Backed Securities | ||
Debt Securities, Held-to-Maturity, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | (5) | (6) |
Credit losses on securities where credit losses were not previously recorded | 0 | 0 |
Increases in allowance on previously impaired securities | 0 | 0 |
Decreases in allowance on previously impaired securities | 0 | 0 |
Reduction in allowance due to disposals | 0 | 0 |
Balance, end of period | (5) | (6) |
Foreign Corporate Securities | ||
Debt Securities, Held-to-Maturity, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | (1) | (1) |
Credit losses on securities where credit losses were not previously recorded | (1) | 0 |
Increases in allowance on previously impaired securities | 0 | 0 |
Decreases in allowance on previously impaired securities | 0 | 0 |
Reduction in allowance due to disposals | 0 | 0 |
Balance, end of period | $ (1) | $ (1) |
INVESTMENTS - Schedule of Gross
INVESTMENTS - Schedule of Gross Gains (Losses) from Dispositions of Fixed Maturity and Equity Securities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales of fixed maturity securities - available for sale | $ 346 | $ 49 |
Gross gains from dispositions | 8 | 3 |
Gross losses from dispositions | (14) | (4) |
Proceeds from sales of equity securities | 0 | 46 |
Gross gains from dispositions | 1 | 7 |
Gross losses from dispositions | $ 0 | $ 0 |
FAIR VALUE - Narrative (Details
FAIR VALUE - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Dec. 31, 2015 | Mar. 31, 2024 | Dec. 31, 2023 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value | $ 16,085,000,000 | $ 15,932,000,000 | |
Annual dividend rate | 1.75% | ||
Transfers in/(out) of Level 3 and reclassification of securities in/(out) of investment categories | 0 | ||
Other invested assets, at fair value | 1,478,000,000 | 1,481,000,000 | |
Fair Value | Investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Other invested assets, at fair value | $ 258,000,000 | 274,000,000 | |
4.868% Senior notes | Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Observable input constant maturity | 10 years | ||
Other invested assets, at fair value | 4.868% | ||
Redeemable Convertible Preferred Stock | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Preferred stock term | 25 years | ||
Annual dividend rate | 1.75% | ||
Fixed maturities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value | $ 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, Recorded at Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 16,085 | $ 15,932 |
Equity securities, at fair value | 89 | 91 |
Other invested assets, at fair value | 1,478 | 1,481 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Equity securities, at fair value | 69 | 70 |
Other invested assets, at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 14,109 | 13,939 |
Equity securities, at fair value | 20 | 21 |
Other invested assets, at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 1,976 | 1,993 |
Equity securities, at fair value | 0 | 0 |
Other invested assets, at fair value | 1,478 | 1,481 |
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 | 245 | 247 |
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 | 245 | 247 |
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 | 115 | 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 | 115 | 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 | 4,532 | 4,289 |
Corporate securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Corporate securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 3,912 | 3,617 |
Corporate securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 620 | 672 |
Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 4,960 | 5,282 |
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 | 3,620 | 3,977 |
Asset-backed securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 1,340 | 1,305 |
Commercial | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 519 | 522 |
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 | 519 | 522 |
Commercial | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Agency residential | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 2,377 | 2,435 |
Agency residential | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Agency residential | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 2,377 | 2,435 |
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 | 667 | 441 |
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 | 667 | 441 |
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 | 922 | 835 |
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 | 922 | 835 |
Foreign government securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Foreign corporate securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 1,748 | 1,753 |
Foreign corporate securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Foreign corporate securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 1,732 | 1,737 |
Foreign corporate securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 16 | $ 16 |
FAIR VALUE - Schedule of Activi
FAIR VALUE - Schedule of Activity Under Level 3, Fair Value Measurements Using Significant Unobservable Inputs for Fixed Maturities - Available for Sale (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Transfers in/(out) of Level 3 and reclassification of securities in/(out) investment categories | $ 0 | |
Fair Value Recurring Basis Unobservable Input Reconciliation Asset Gain (Loss) Statement Of Income Extensible List Not Disclosed Flag | Total gains or (losses) (realized/unrealized) | Total gains or (losses) (realized/unrealized) |
Fair Value Recurring Basis Unobservable Input Reconciliation Asset Gain (Loss) Statement Of Other Comprehensive Income Extensible List Not Disclosed Flag | Included in other comprehensive income (loss) | Included in other comprehensive income (loss) |
Market Value | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance of fixed maturities | $ 1,993,000,000 | $ 1,725,000,000 |
Total gains or (losses) (realized/unrealized) included in earnings (or changes in net assets) | 1,000,000 | 1,000,000 |
Included in other comprehensive income (loss) | 7,000,000 | 14,000,000 |
Purchases, issuances and settlements | (25,000,000) | 5,000,000 |
Transfers in/(out) of Level 3 and reclassification of securities in/(out) investment categories | 0 | 0 |
Ending balance | 1,976,000,000 | 1,745,000,000 |
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 | 1,000,000 | 0 |
Market Value | Corporate Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance of fixed maturities | 672,000,000 | 715,000,000 |
Total gains or (losses) (realized/unrealized) included in earnings (or changes in net assets) | 1,000,000 | 1,000,000 |
Included in other comprehensive income (loss) | 0 | (4,000,000) |
Purchases, issuances and settlements | (52,000,000) | (3,000,000) |
Transfers in/(out) of Level 3 and reclassification of securities in/(out) investment categories | 0 | 0 |
Ending balance | 620,000,000 | 709,000,000 |
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 | 1,000,000 | 0 |
Market Value | Asset Backed Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance of fixed maturities | 1,305,000,000 | 994,000,000 |
Total gains or (losses) (realized/unrealized) included in earnings (or changes in net assets) | 0 | 0 |
Included in other comprehensive income (loss) | 7,000,000 | 18,000,000 |
Purchases, issuances and settlements | 28,000,000 | 9,000,000 |
Transfers in/(out) of Level 3 and reclassification of securities in/(out) investment categories | 0 | 0 |
Ending balance | 1,340,000,000 | 1,020,000,000 |
The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date | 0 | 0 |
Market Value | Foreign Corporate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance of fixed maturities | 16,000,000 | 16,000,000 |
Total gains or (losses) (realized/unrealized) included in earnings (or changes in net assets) | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0 |
Purchases, issuances and settlements | (1,000,000) | 0 |
Transfers in/(out) of Level 3 and reclassification of securities in/(out) investment categories | 0 | 0 |
Ending balance | 16,000,000 | 16,000,000 |
The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date | $ 0 | $ 0 |
RESERVES FOR LOSSES AND LAE - S
RESERVES FOR LOSSES AND LAE - Schedule of Activity in the Reserve for Losses and Loss Adjustment Expenses (“LAE”) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Gross reserve beginning of period | $ 15,796 | $ 14,977 | ||
Less reinsurance recoverables on unpaid losses | (3,098) | (3,586) | $ (3,182) | $ (3,684) |
Net reserves beginning of period | 12,851 | 11,729 | 12,614 | 11,294 |
Incurred related to: | ||||
Current year | 1,399 | 1,403 | ||
Prior years | (24) | (9) | ||
Total incurred losses and LAE | 1,375 | 1,394 | ||
Paid related to: | ||||
Current year | 199 | 585 | ||
Prior years | 910 | 379 | ||
Total paid losses and LAE | 1,109 | 964 | ||
Foreign exchange/translation adjustment | (29) | 5 | ||
Net reserves end of period | 12,851 | 11,729 | ||
Plus (less) reinsurance recoverables on unpaid losses | 3,098 | 3,586 | $ 3,182 | $ 3,684 |
Gross reserves end of period | $ 15,949 | $ 15,315 |
RESERVES FOR LOSSES AND LAE - N
RESERVES FOR LOSSES AND LAE - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reserves For Losses And LAE [Line Items] | ||
Current year incurred losses | $ 1,399 | $ 1,403 |
Prior year incurred development | (24) | $ (9) |
Catastrophe | ||
Reserves For Losses And LAE [Line Items] | ||
Increase (decrease) in earned premium growth | (60) | |
Higher Premiums Earned | ||
Reserves For Losses And LAE [Line Items] | ||
Current year incurred losses | $ 56 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
SEGMENT REPORTING - Schedule of
SEGMENT REPORTING - Schedule of Underwriting Results for Operating Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Gross written premiums | $ 2,772 | $ 2,496 |
Net written premiums | 2,266 | 2,063 |
Premiums earned | 2,231 | 2,068 |
Incurred losses and LAE | 1,375 | 1,394 |
Commission and brokerage | 472 | 436 |
Other underwriting expenses | 146 | 139 |
Underwriting gain (loss) | 237 | 99 |
Net investment income | 312 | 190 |
Net gains (losses) on investments | (8) | 22 |
Corporate expenses | (5) | (6) |
Interest, fees and bond issue cost amortization expense | (37) | (32) |
Other income (expense) | 7 | (4) |
INCOME (LOSS) BEFORE TAXES | 507 | 269 |
Reinsurance | ||
Segment Reporting Information [Line Items] | ||
Gross written premiums | 1,935 | 1,627 |
Net written premiums | 1,624 | 1,357 |
Premiums earned | 1,558 | 1,351 |
Incurred losses and LAE | 932 | 919 |
Commission and brokerage | 402 | 357 |
Other underwriting expenses | 46 | 38 |
Underwriting gain (loss) | 178 | 36 |
Insurance | ||
Segment Reporting Information [Line Items] | ||
Gross written premiums | 837 | 869 |
Net written premiums | 642 | 706 |
Premiums earned | 672 | 718 |
Incurred losses and LAE | 443 | 475 |
Commission and brokerage | 70 | 80 |
Other underwriting expenses | 100 | 101 |
Underwriting gain (loss) | $ 59 | $ 63 |
SENIOR NOTES - Schedule of Outs
SENIOR NOTES - Schedule of Outstanding Senior Notes (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Consolidated Balance Sheet Amount | $ 2,349,000,000 | $ 2,349,000,000 |
Senior Notes | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Principal Amounts | 2,400,000,000 | |
Consolidated Balance Sheet Amount | 2,349,000,000 | 2,349,000,000 |
Fair Value | $ 1,713,000,000 | 1,799,000,000 |
4.868% Senior notes | Senior Notes | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Debt instrument, stated interest rate | 4.868% | |
Principal Amounts | $ 400,000,000 | |
Consolidated Balance Sheet Amount | 398,000,000 | 398,000,000 |
Fair Value | $ 363,000,000 | 369,000,000 |
3.5% Senior notes | Senior Notes | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Debt instrument, stated interest rate | 3.50% | |
Principal Amounts | $ 1,000,000,000 | |
Consolidated Balance Sheet Amount | 981,000,000 | 981,000,000 |
Fair Value | $ 702,000,000 | 742,000,000 |
3.125% Senior notes | Senior Notes | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Debt instrument, stated interest rate | 3.125% | |
Principal Amounts | $ 1,000,000,000 | |
Consolidated Balance Sheet Amount | 970,000,000 | 970,000,000 |
Fair Value | $ 648,000,000 | $ 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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | ||
Interest expense incurred | $ 22 | $ 22 |
4.868% Senior notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 4.868% | |
Interest expense incurred | $ 5 | 5 |
3.5% Senior notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 3.50% | |
Interest expense incurred | $ 9 | 9 |
3.125% Senior notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 3.125% | |
Interest expense incurred | $ 8 | $ 8 |
LONG-TERM SUBORDINATED NOTES -
LONG-TERM SUBORDINATED NOTES - Schedule of Outstanding Fixed to Floating Rate Long-Term Subordinated Notes (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Consolidated Balance Sheet Amount | $ 218,000,000 | $ 218,000,000 |
Subordinated Notes 6.60% | Long Term Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Original Principal Amount | 400,000,000 | |
Consolidated Balance Sheet Amount | 218,000,000 | 218,000,000 |
Fair Value | $ 205,000,000 | $ 187,000,000 |
LONG-TERM SUBORDINATED NOTES _2
LONG-TERM SUBORDINATED NOTES - Narrative (Details) | 3 Months Ended | |||
May 17, 2017 | Mar. 31, 2024 | May 14, 2024 | May 14, 2017 | |
Subordinated Notes 6.60% | Long Term Subordinated Debt | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated interest rate | 6.60% | |||
Interest basis, 3 month LIBOR plus number of basis points, reset quarterly | 2.385% | |||
Right to defer interest on one or more occasions for up to number of consecutive years | 10 years | |||
Percentage of principal amount required for redemption | 100% | |||
Subordinated Notes 6.60% | Long Term Subordinated Debt | Forecast | ||||
Debt Instrument [Line Items] | ||||
Reset quarterly interest rate | 8.03% | |||
4.868% Senior notes | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated interest rate | 4.868% | |||
3.5% Senior notes | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated interest rate | 3.50% | |||
3.125% Senior notes | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated interest rate | 3.125% |
LONG-TERM SUBORDINATED NOTES _3
LONG-TERM SUBORDINATED NOTES - Schedule of Interest Expense Incurred in Connection with Long-Term Subordinated Notes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Long-Term Debt, Unclassified [Abstract] | ||
Interest expense incurred | $ 4 | $ 4 |
FEDERAL HOME LOAN BANK MEMBER_2
FEDERAL HOME LOAN BANK MEMBERSHIP (Details) - Federal Home Loan Bank of New York - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Maximum percentage of admitted assets allowed for borrowing base | 10% | |
Admitted assets for FHLB | $ 27,000 | |
Maximum amount available under FHLB | 2,700 | |
Outstanding | 819 | |
Interest expense | $ 11 | $ 6 |
Amount of borrowed funds required to be used to acquire additional membership stock, percentage | 4.50% | |
Asset Pledged as Collateral | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Collateral pledged | $ 1,100 |
COLLATERALIZED REINSURANCE, T_3
COLLATERALIZED REINSURANCE, TRUST AGREEMENTS AND OTHER RESTRICTED ASSETS - Schedule of Restricted Assets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Collateralized Reinsurance And Trust Agreements [Abstract] | ||
Collateral in trust for non-affiliated agreements | $ 764 | $ 825 |
Collateral for FHLB borrowings | 1,067 | 1,077 |
Securities on deposit with or regulated by government authorities | 1,415 | 1,447 |
Funds held by reinsureds | 313 | 306 |
Total restricted assets | 3,559 | 3,654 |
Restricted cash | $ 121 | $ 116 |
COLLATERALIZED REINSURANCE, T_4
COLLATERALIZED REINSURANCE, TRUST AGREEMENTS AND OTHER RESTRICTED ASSETS - Schedule of Collateralized Reinsurance Agreements (Details) - Kilimanjaro Re Limited $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Effects of Reinsurance [Line Items] | |
Limit | $ 1,375 |
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 |
COLLATERALIZED REINSURANCE, T_5
COLLATERALIZED REINSURANCE, TRUST AGREEMENTS AND OTHER RESTRICTED ASSETS - Narrative (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Collateralized Reinsurance And Trust Agreements [Abstract] | |
Catastrophe bond protection, threshold | $ 350 |
OTHER COMPREHENSIVE INCOME (L_3
OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Components of Comprehensive Income (Loss) in the Consolidated Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Before Tax | ||
Total other comprehensive income (loss), before tax | $ (98) | $ 161 |
Tax Effect | ||
Total other comprehensive income (loss), tax effect | 20 | (33) |
Net of Tax | ||
Total other comprehensive income (loss), net of tax | (77) | 128 |
URA(D) on securities | ||
Before Tax | ||
OCI before reclassification, before tax | (78) | 142 |
Reclassification of net realized losses (gains) included in net income (loss), before tax | 4 | 11 |
Tax Effect | ||
OCI before reclassification, tax effect | 16 | (30) |
Reclassification of net realized losses (gains) included in net income (loss), tax effect | (1) | (2) |
Net of Tax | ||
OCI before reclassifications, net of tax | (62) | 112 |
Reclassification of net realized losses (gains) included in net income (loss), net of tax | 3 | 9 |
Total other comprehensive income (loss), net of tax | (59) | 121 |
Foreign currency translation adjustments | ||
Before Tax | ||
OCI before reclassification, before tax | (24) | 8 |
Tax Effect | ||
OCI before reclassification, tax effect | 5 | (1) |
Net of Tax | ||
OCI before reclassifications, net of tax | (19) | 7 |
Total other comprehensive income (loss), net of tax | (19) | 7 |
Benefit plan net gain (loss) | ||
Before Tax | ||
Reclassification of net realized losses (gains) included in net income (loss), before tax | 1 | 0 |
Tax Effect | ||
Reclassification of net realized losses (gains) included in net income (loss), tax effect | 0 | 0 |
Net of Tax | ||
Reclassification of net realized losses (gains) included in net income (loss), net of tax | 0 | 0 |
Total other comprehensive income (loss), net of tax | $ 0 | $ 0 |
OTHER COMPREHENSIVE INCOME (L_4
OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Reclassification from Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other net gains (losses) on investments | $ (8) | $ 22 |
Income tax expense (benefit) | 99 | 49 |
Other underwriting expenses | 146 | 139 |
Net income (loss) | 408 | 220 |
URA(D) on securities | Reclassification from Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other net gains (losses) on investments | 4 | 11 |
Income tax expense (benefit) | (1) | (2) |
Net income (loss) | 3 | 9 |
Benefit plan net gain (loss) | Reclassification from Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income tax expense (benefit) | 0 | 0 |
Other underwriting expenses | 1 | 0 |
Net income (loss) | $ 0 | $ 0 |
OTHER COMPREHENSIVE INCOME (L_5
OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Components of Accumulated Other Comprehensive Income (Loss), Net of Tax, in the Consolidated Balance Sheets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 7,187 | |
Current period change | (77) | $ 128 |
Ending balance | 7,518 | 6,002 |
Accumulated Other Comprehensive Income (Loss), Net of Deferred Income Taxes | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (287) | (848) |
Current period change | (77) | 128 |
Ending balance | (364) | (720) |
URA(D) on securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (289) | (816) |
Current period change | (59) | 121 |
Ending balance | (348) | (695) |
Foreign currency translation adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 19 | 1 |
Current period change | (19) | 7 |
Ending balance | 0 | 8 |
Benefit plan net gain (loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (16) | (33) |
Current period change | 0 | 0 |
Ending balance | $ (16) | $ (33) |
RELATED-PARTY TRANSACTIONS - Na
RELATED-PARTY TRANSACTIONS - Narrative (Details) € in Millions, £ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | 72 Months Ended | 96 Months Ended | ||||||
Dec. 31, 2017 USD ($) | Jan. 31, 2024 EUR (€) | Dec. 31, 2015 USD ($) shares | Mar. 31, 2024 USD ($) | Sep. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Jan. 31, 2022 EUR (€) | Dec. 31, 2021 GBP (£) | Dec. 31, 2009 | Dec. 31, 2017 | Dec. 31, 2023 USD ($) | |
Related Party Transaction [Line Items] | |||||||||||
Shares received in exchange from affiliated entity for transfer | shares | 1,773.214 | ||||||||||
Preferred shares par value | $ 1 | ||||||||||
Annual dividend rate | 1.75% | ||||||||||
Shares transferred to affiliated entity | shares | 9,719,971 | ||||||||||
Reinsurance agreements, aggregate loss | $ 1,375 | $ 1,394 | |||||||||
Subject loss reserves | $ 2,300 | ||||||||||
Amount transferred | 1,000 | ||||||||||
Coverage Period, 2002 Through 2017 | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Reinsurance recoverables | 718 | $ 759 | |||||||||
Coverage Period, 2007 Through 2017 | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Reinsurance recoverables | 41 | 45 | |||||||||
Coverage Period, 2004 Through 2009 | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Reinsurance recoverables | 7 | 7 | |||||||||
Minimum | Coverage Period, 2002 Through 2017 | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Share reinsurance percentage | 20% | ||||||||||
Minimum | Coverage Period, 2007 Through 2017 | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Share reinsurance percentage | 60% | ||||||||||
Minimum | Coverage Period, 2004 Through 2009 | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Share reinsurance percentage | 2% | ||||||||||
Maximum | Coverage Period, 2002 Through 2017 | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Share reinsurance percentage | 60% | ||||||||||
Maximum | Coverage Period, 2007 Through 2017 | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Share reinsurance percentage | 75% | ||||||||||
Maximum | Coverage Period, 2004 Through 2009 | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Share reinsurance percentage | 8% | ||||||||||
Everest Re Group, Ltd. | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Reinsurance agreements, aggregate loss | $ 37 | ||||||||||
Bermuda Re | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Adverse development coverage | 500 | ||||||||||
Everest Re Group, Ltd. | Bermuda Re | Catastrophe Reinsurance | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Reinsurance agreement | £ | £ 100 | ||||||||||
Reinsurance agreement, threshold | £ | 24 | ||||||||||
Payments for coverage | £ | £ 5 | ||||||||||
Everest Re Group, Ltd. | Ireland Re | Catastrophe Reinsurance | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Reinsurance agreement | € | € 61 | € 210 | |||||||||
Reinsurance agreement, threshold | € | 139 | 18 | |||||||||
Payments for coverage | € | € 2 | € 14 | |||||||||
Bermuda Re | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Reinsurance recoverables | $ 807 | $ 807 | |||||||||
Amount transferred | $ 970 |
RELATED-PARTY TRANSACTIONS - Sc
RELATED-PARTY TRANSACTIONS - Schedule of Dividends Received on Preferred Shares (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Dividends from preferred shares of affiliate | ||
Related Party Transaction [Line Items] | ||
Dividends received on preferred stock of affiliate | $ 8 | $ 8 |
RELATED-PARTY TRANSACTIONS - _2
RELATED-PARTY TRANSACTIONS - Schedule of Loss Portfolio Transfer Reinsurance Agreements, Net Insurance Exposures and Reserves were Transferred to an Affiliate (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
12/31/2017 | |
Related Party Transaction [Line Items] | |
Amount of Transfer | $ 970 |
RELATED-PARTY TRANSACTIONS - _3
RELATED-PARTY TRANSACTIONS - Schedule of Premiums and Losses Ceded by Company to Affiliate (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Mt. Logan Re Segregated Accounts | ||
Effects of Reinsurance [Line Items] | ||
Ceded written premiums | $ 71 | $ 42 |
Ceded earned premiums | 70 | 38 |
Ceded losses and LAE | 19 | 13 |
Bermuda Re | ||
Effects of Reinsurance [Line Items] | ||
Ceded written premiums | 116 | 106 |
Ceded earned premiums | 116 | 106 |
Ceded losses and LAE | $ (2) | $ 4 |