10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM

10-Q

☑

 Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended

September 30, 2022

☐

 Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission file number

1-14527

EVEREST REINSURANCE HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Delaware

22-3263609

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

100 Everest Way

Warren

,

New Jersey

07059

 (

908

)

604-3000

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive office)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the

Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to

file such reports), and (2) has been subject to such filing requirements for the past 90 days.

YES

☑

 NO

☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted

pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was

required to submit such files).

YES

☑

 NO

☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller

reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,”

“smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated Filer

☑

Smaller reporting company

☐

Emerging growth company

☐

Indicate by check mark if the registrant is an emerging growth company and has elected not to use the extended transition

period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the

Exchange act. 

YES 

☐

 NO

☑

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES 

☐

 NO

☑

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Number of Shares Outstanding

Class

At November 1, 2022

Common Shares, $0.01 par value

1,000

The Registrant meets the conditions set forth in General Instruction H (1)(a) and (b) of Form 10-Q and is therefore filing this

form with the reduced disclosure format permitted by General Instruction H of Form 10-Q. 

EVEREST REINSURANCE HOLDINGS, INC.

Table of Contents

Form 10-Q

Page

PART I

FINANCIAL INFORMATION

Item 1.

Financial Statements

Consolidated Balance Sheets as of September 30, 2022 (unaudited) and

December 31, 2021 

1

Consolidated Statements of Operations and Comprehensive Income (Loss) for

the three and nine months ended September 30, 2022 and 2021 (unaudited)

2

Consolidated Statements of Changes in Stockholder’s Equity for the three and

nine months ended September 30, 2022 and 2021 (unaudited)

3

Consolidated Statements of Cash Flows for the nine months ended September

30, 2022 and 2021 (unaudited)

4

Notes to Consolidated Interim Financial Statements (unaudited)

5

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of

Operation

31

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

46

Item 4.

Controls and Procedures

47

PART II

OTHER INFORMATION

Item 1.

Legal Proceedings

47

Item 1A.

Risk Factors

47

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

47

Item 3.

Defaults Upon Senior Securities

47

Item 4.

Mine Safety Disclosures

47

Item 5.

Other Information

48

Item 6.

Exhibits

48

1

EVEREST REINSURANCE HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

September 30,

December 31,

(Dollars in millions, except share amounts and par value per share)

2022

2021

(unaudited)

ASSETS:

Fixed maturities - available for sale, at fair value

$

12,070

$

12,860

(amortized cost: 2022, $

13,207

; 2021, $

12,733

, allowances for credit losses: 2022, ($

30

); 2021, ($

27

))

Fixed maturities - held to maturity, at amortized cost, net of credit allowances 

(fair value: 2022, $

789

, credit allowances: 2022, ($

9

))

809

-

Equity securities, at fair value

1,258

1,758

Short-term investments (cost: 2022, $

454

; 2021, $

696

)

454

696

Other invested assets

1,797

1,675

Other invested assets, at fair value

1,680

2,031

Cash

878

699

Total investments and cash

18,946

19,719

Notes receivable - affiliated

715

500

Accrued investment income

139

90

Premiums receivable

1,763

1,720

Reinsurance recoverables - unaffiliated

1,786

1,569

Reinsurance recoverables - affiliated

2,017

2,299

Funds held by reinsureds

291

299

Deferred acquisition costs

473

472

Prepaid reinsurance premiums

458

431

Income tax asset, net

379

-

Other assets

689

596

TOTAL ASSETS

$

27,656

$

27,695

LIABILITIES:

Reserve for losses and loss adjustment expenses

$

14,849

$

13,121

Unearned premium reserve

3,145

2,993

Funds held under reinsurance treaties

47

48

Other net payable to reinsurers

432

392

Losses in course of payment

141

273

Income tax liability, net 

-

246

Senior notes

2,347

2,346

Long term notes

218

224

Borrowings from FHLB

519

519

Accrued interest on debt and borrowings

39

17

Unsettled securities payable

109

15

Other liabilities

476

463

 Total liabilities

22,322

20,657

Commitments and Contingencies (Note 6)

(nil)

(nil)

STOCKHOLDER'S EQUITY:

Common stock, par value: $

0.01

;

3,000

 shares authorized; 

1,000

 shares issued and outstanding (2022 and 2021)

-

-

Additional paid-in capital

1,102

1,102

Accumulated other comprehensive income (loss), net of deferred income

 tax expense (benefit) of ($

262

) at 2022 and $

24

 at 2021

(987)

91

Retained earnings

5,219

5,845

Total stockholder's equity

5,334

7,038

TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY

$

27,656

$

27,695

The accompanying notes are an integral part of the consolidated financial statements.

2

EVEREST REINSURANCE HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

(unaudited)

(unaudited)

REVENUES:

Premiums earned 

$

2,104

$

1,851

$

5,887

$

5,315

Net investment income

124

197

457

593

Net gains (losses) on investments:

Credit allowances on fixed maturity securities

(12)

(7)

(12)

(30)

Gains (losses) from fair value adjustments

(245)

(48)

(801)

274

Net realized gains (losses) from dispositions

20

4

(29)

23

Total net gains (losses) on investments

(237)

(51)

(842)

267

Other income (expense)

7

10

(2)

12

Total revenues

1,998

2,007

5,500

6,187

CLAIMS AND EXPENSES:

Incurred losses and loss adjustment expenses 

2,094

1,653

4,624

4,103

Commission, brokerage, taxes and fees

423

389

1,216

1,126

Other underwriting expenses 

127

110

365

329

Corporate expenses

5

11

17

23

Interest, fees and bond issue cost amortization expense

26

16

74

47

Total claims and expenses

2,675

2,178

6,296

5,627

INCOME (LOSS) BEFORE TAXES 

(677)

(171)

(796)

560

Income tax expense (benefit) 

(135)

(28)

(170)

118

NET INCOME (LOSS) 

$

(542)

$

(143)

$

(626)

$

442

Other comprehensive income (loss), net of tax:

Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period

(282)

(43)

(1,087)

(110)

Less: reclassification adjustment for realized losses (gains) included in net income (loss)

40

2

48

10

Total URA(D) on securities arising during the period

(242)

(41)

(1,039)

(100)

Foreign currency translation adjustments

(29)

(21)

(41)

(5)

Reclassification adjustment for amortization of net (gain) loss included in net income (loss)

-

2

2

6

Total benefit plan net gain (loss) for the period

-

2

2

6

Total other comprehensive income (loss), net of tax

(271)

(61)

(1,078)

(99)

COMPREHENSIVE INCOME (LOSS) 

$

(813)

$

(204)

$

(1,704)

$

343

The accompanying notes are an integral part of the consolidated financial statements.

3

EVEREST REINSURANCE HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF 

CHANGES IN STOCKHOLDER’S EQUITY

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in millions, except share amounts)

2022

2021

2022

2021

(unaudited)

(unaudited)

COMMON STOCK (shares outstanding):

Balance, beginning of period

1,000

1,000

1,000

1,000

Balance, end of period

1,000

1,000

1,000

1,000

ADDITIONAL PAID-IN CAPITAL:

Balance, beginning of period

$

1,102

$

1,101

$

1,102

$

1,101

Share-based compensation plans

-

-

-

-

Balance, end of period

1,102

1,101

1,102

1,101

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS),

NET OF DEFERRED INCOME TAXES:

Balance, beginning of period

(716)

230

91

268

Net increase (decrease) during the period

(271)

(61)

(1,078)

(99)

Balance, end of period

(987)

169

(987)

169

RETAINED EARNINGS:

Balance, beginning of period

5,760

5,630

5,845

5,045

Net income (loss) 

(542)

(143)

(626)

442

Balance, end of period

5,219

5,487

5,219

5,487

TOTAL STOCKHOLDER'S EQUITY, END OF PERIOD

$

5,334

$

6,758

$

5,334

$

6,758

The accompanying notes are an integral part of the consolidated financial statements.

4

EVEREST REINSURANCE HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended

September 30,

(Dollars in millions)

2022

2021

(unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss) 

$

(626)

$

442

Adjustments to reconcile net income to net cash provided by operating activities:

Decrease (increase) in premiums receivable

(50)

(261)

Decrease (increase) in funds held by reinsureds, net

7

(26)

Decrease (increase) in reinsurance recoverables

40

172

Decrease (increase) in income taxes 

(341)

85

Decrease (increase) in prepaid reinsurance premiums

(30)

(81)

Increase (decrease) in reserve for losses and loss adjustment expenses

1,791

1,657

Increase (decrease) in unearned premiums

159

530

Increase (decrease) in other net payable to reinsurers

45

151

Increase (decrease) in losses in course of payment

(131)

(11)

Change in equity adjustments in limited partnerships

(94)

(311)

Distribution of limited partnership income

72

65

Change in other assets and liabilities, net

(62)

(87)

Non-cash compensation expense

28

28

Amortization of bond premium (accrual of bond discount)

21

23

Net (gains) losses on investments

842

(267)

Net cash provided by (used in) operating activities

1,671

2,106

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from fixed maturities matured/called/repaid - available for sale

1,124

1,640

Proceeds from fixed maturities sold - available for sale

812

394

Proceeds from fixed maturities matured/called/repaid - held to maturity

18

-

Proceeds from equity securities sold - at fair value

1,016

450

Proceeds from distributions and sales of other invested assets

126

135

Cost of fixed maturities acquired - available for sale

(3,358)

(3,485)

Cost of fixed maturities acquired - held to maturity

(105)

-

Cost of equity securities acquired - at fair value

(949)

(507)

Cost of other invested assets acquired

(224)

(396)

Net change in short-term investments

243

171

Net change in unsettled securities transactions

79

(194)

Proceeds from repayment (cost of issuance) of note receivable - affiliated

(215)

(200)

Net cash provided by (used in) investing activities

(1,433)

(1,992)

CASH FLOWS FROM FINANCING ACTIVITIES:

Tax benefit from share-based compensation, net of expense

(28)

(27)

Cost of debt repurchase

(6)

-

Net cash provided by (used in) financing activities

(34)

(27)

EFFECT OF EXCHANGE RATE CHANGES ON CASH

(25)

(12)

Net increase (decrease) in cash

179

75

Cash, beginning of period

699

379

Cash, end of period

$

878

$

453

SUPPLEMENTAL CASH FLOW INFORMATION:

Income taxes paid (recovered)

$

170

$

33

Interest paid

51

33

NON-CASH TRANSACTIONS

Reclassification of specific investments from fixed maturity securities, available for sale 

at fair value to fixed maturity securities, held to maturity at amortized cost net of credit allowances

$

722

$

-

The accompanying notes are an integral part of the consolidated financial statements.

5

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

For the Three and Nine Months Ended September 30, 2022, and 2021

1. GENERAL

Everest Reinsurance Holdings, Inc. (“Holdings”), a Delaware company and direct subsidiary of Everest Underwriting

Group (Ireland) Limited (“Holdings Ireland”), which is a direct subsidiary of Everest Re 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 and its subsidiaries, a subsidiary of Holdings (unless the context otherwise requires).

2. BASIS OF PRESENTATION

The unaudited consolidated financial statements of the Company as of September 30, 2022 and December 31,

2021 and for the three and nine months ended September 30, 2022 and 2021 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, 2021 consolidated

balance sheet data was derived from audited financial statements but does not include all disclosures required by

GAAP. The results for the three and nine months ended September 30, 2022 and 2021 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, 2021, 2020 and 2019,

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. 

Certain reclassifications and format changes have been made to prior years’ amounts to conform to the 2022

presentation. 

Application of Recently Issued Accounting Standard Changes. 

The Company did not adopt any new accounting standards that had a material impact during the three and nine

months ended September 30, 2022. The Company assessed the adoption impacts of recently issued accounting

standards by the Financial Accounting Standards Board on the Company’s consolidated financial statements as well

as material updates to previous assessments, if any, from the Company’s Annual Report on Form 10-K for the year

ended December 31, 2021. There were no accounting standards issued in the nine months ended September 30,

2022, that are expected to have a material impact to Holdings.

Any issued guidance and pronouncements, other than those directly referenced above, are deemed by the

Company to be either not applicable or immaterial to its financial statements.

6

3. INVESTMENTS

The following tables show amortized cost, allowance for credit losses, gross unrealized appreciation, gross

unrealized depreciation and fair value of available for sale, fixed maturity securities available for sale as of the

dates indicated:

At September 30, 2022

Amortized

Allowances for 

Unrealized

Unrealized

Fair

(Dollars in millions)

Cost

Credit Losses

Appreciation

Depreciation

Value

Fixed maturity securities – available for sale

U.S. Treasury securities and obligations of

 U.S. government agencies and corporations 

$

602

$

-

$

-

$

(40)

$

562

Obligations of U.S. states and political

 subdivisions

519

-

1

(38)

481

Corporate securities

3,962

(29)

13

(382)

3,564

Asset-backed securities

3,801

-

1

(157)

3,645

Mortgage-backed securities

Commercial

556

-

-

(61)

495

Agency residential

1,562

-

-

(195)

1,367

Non-agency residential

3

-

-

-

3

Foreign government securities

688

-

4

(65)

626

Foreign corporate securities

1,515

(1)

4

(192)

1,326

Total fixed maturity securities - available for sale

$

13,207

$

(30)

$

23

$

(1,130)

$

12,070

(Some amounts may not reconcile due to rounding.)

At December 31, 2021

Amortized

Allowances for

Unrealized

Unrealized

Fair

(Dollars in millions)

Cost

Credit Losses

Appreciation

Depreciation

Value

Fixed maturity securities – available for sale

U.S. Treasury securities and obligations of

 U.S. government agencies and corporations 

$

657

$

-

$

9

$

(3)

$

663

Obligations of U.S. states and political

 subdivisions

559

-

29

(1)

587

Corporate securities

4,036

(19)

89

(31)

4,075

Asset-backed securities

3,464

(8)

21

(11)

3,466

Mortgage-backed securities

Commercial

586

-

21

(4)

603

Agency residential

1,255

-

16

(10)

1,261

Non-agency residential

4

-

-

-

4

Foreign government securities

677

-

22

(7)

692

Foreign corporate securities

1,494

-

34

(18)

1,510

Total fixed maturity securities - available for sale

$

12,733

$

(27)

$

241

$

(86)

$

12,860

(Some amounts may not reconcile due to rounding.)

The following tables show amortized cost, allowance for credit losses, gross unrealized appreciation/(depreciation)

and fair value of fixed maturity securities held to maturity as of the dates indicated:

7

At September 30, 2022

Amortized

Allowances for

Unrealized

Unrealized

Fair

(Dollars in millions)

Cost

Credit Loss

Appreciation

Depreciation

Value

Fixed maturity securities – held to maturity

Corporate securities

$

159

$

(2)

$

-

$

(11)

$

147

Asset-backed securities

625

(6)

1

(10)

611

Mortgage-backed securities

Commercial

6

-

-

-

6

Foreign corporate securities

28

(1)

-

(1)

26

Total fixed maturity securities - held to maturity

$

818

$

(9)

$

1

$

(21)

$

789

(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 tables by

contractual maturity. Mortgage-backed securities are generally more likely to be prepaid than other fixed maturity

securities. 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 September 30, 2022

At December 31, 2021

Amortized

Fair

Amortized

Fair

(Dollars in millions)

Cost

Value

Cost

Value

Fixed maturity securities – available for sale:

 Due in one year or less

$

554

$

537

$

586

$

584

 Due after one year through five years

3,730

3,455

3,488

3,527

 Due after five years through ten years

2,034

1,752

2,260

2,310

 Due after ten years

967

815

1,088

1,106

Asset-backed securities

3,801

3,645

3,464

3,466

Mortgage-backed securities

Commercial

556

495

586

603

Agency residential

1,562

1,367

1,255

1,261

Non-agency residential

3

3

4

4

Total fixed maturity securities - available for sale

$

13,207

$

12,070

$

12,733

$

12,860

(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.

At September 30, 2022

Amortized

Fair

(Dollars in millions)

Cost

Value

Fixed maturity securities – held to maturity:

 Due after one year through five years

$

61

$

58

 Due after five years through ten years

46

41

 Due after ten years

80

74

Asset-backed securities

625

611

Mortgage-backed securities

Commercial

6

6

Total fixed maturity securities - held to maturity

$

818

$

789

(Some amounts may not reconcile due to rounding.)

During the third quarter of 2022, the Company re-designated a portion of its fixed maturity securities from its

fixed maturity – available for sale portfolio to its fixed maturity – held to maturity portfolio. The fair value of the

8

securities reclassified at the date of transfer was $

722

 million, net of allowance for current expected credit losses,

which was subsequently recognized as the new amortized cost basis. As of the date of transfer, these securities

had an unrealized loss of $

53

 million, which remained in accumulated other comprehensive income on the balance

sheet, and will be amortized into income through an adjustment to the yields of the underlying securities over the

remaining life of the securities.

The Company evaluated fixed maturity securities classified as held to maturity for current expected credit losses as

of September 30, 2022 utilizing risk characteristics of each security, including credit rating, remaining time to

maturity, adjusted for prepayment considerations, and subordination level, and applying default and recovery

rates, which include the incorporation of historical credit loss experience and macroeconomic forecasts, to develop

an estimate of current expected credit losses. These fixed maturities classified as held to maturity are of a high

credit quality and are all rated investment grade as of September 30, 2022.

The changes in net unrealized appreciation (depreciation) for the Company’s investments are derived from the

following sources for the periods indicated:

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Increase (decrease) during the period between the fair value and cost of 

 investments carried at fair value, and deferred taxes thereon:

Fixed maturity securities - short-term investments

$

(307)

$

(52)

$

(1,315)

$

(126)

Change in unrealized appreciation (depreciation), pre-tax

(307)

(52)

(1,315)

(126)

Deferred tax benefit (expense) 

65

11

276

27

Change in unrealized appreciation (depreciation), net of deferred taxes, 

 included in stockholder's equity 

$

(242)

$

(41)

$

(1,039)

$

(100)

(Some amounts may not reconcile due to rounding.)

9

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 September 30, 2022 By Security Type

Less than 12 months

Greater than 12 months

Total

Gross

Gross

Gross

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

(Dollars in millions)

Value

Depreciation

Value

Depreciation

Value

Depreciation

Fixed maturity securities -available for sale

U.S. Treasury securities and obligations of 

 U.S. government agencies and corporations

$

395

$

(22)

$

143

$

(18)

$

538

$

(40)

Obligations of U.S. states and political subdivisions

327

(30)

25

(8)

351

(38)

Corporate securities

2,447

(260)

550

(104)

2,997

(365)

Asset-backed securities

2,718

(153)

39

(4)

2,757

(157)

Mortgage-backed securities

Commercial

489

(61)

6

(1)

495

(61)

Agency residential

1,060

(133)

306

(62)

1,365

(195)

Non-agency residential

2

-

1

-

3

-

Foreign government securities

457

(43)

116

(22)

573

(65)

Foreign corporate securities

907

(112)

314

(80)

1,222

(192)

Total 

8,802

(812)

1,499

(301)

10,302

(1,113)

Securities where an allowance for credit losses 

 was recorded

20

(17)

-

-

20

(17)

Total fixed maturity securities

$

8,822

$

(830)

$

1,499

$

(301)

$

10,322

$

(1,130)

(Some amounts may not reconcile due to rounding.)

Duration of Unrealized Loss at September 30, 2022 By Maturity

Less than 12 months

Greater than 12 months

Total

Gross

Gross

Gross

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

(Dollars in millions)

Value

Depreciation

Value

Depreciation

Value

Depreciation

Fixed maturity securities - available for sale

Due in one year or less

$

399

$

(7)

$

40

$

(3)

$

440

$

(10)

Due in one year through five years

2,377

(184)

602

(88)

2,978

(272)

Due in five years through ten years

1,211

(182)

360

(101)

1,570

(283)

Due after ten years

546

(93)

146

(41)

692

(134)

Asset-backed securities

2,718

(153)

39

(4)

2,757

(157)

Mortgage-backed securities

1,551

(194)

313

(63)

1,864

(256)

Total 

8,802

(812)

1,499

(301)

10,302

(1,113)

Securities where an allowance for credit losses 

 was recorded

20

(17)

-

-

20

(17)

Total fixed maturity securities

$

8,822

$

(830)

$

1,499

$

(301)

$

10,322

$

(1,130)

(Some amounts may not reconcile due to rounding.)

10

The aggregate fair value and gross unrealized losses related to fixed maturity securities available for sale in an

unrealized loss position at September 30, 2022 were $

10

 billion and $

1

 billion, respectively. The fair value of

securities for the single issuer (the United States government) whose securities comprised the largest unrealized

loss position at September 30, 2022, did not exceed

4.5

% of the overall fair value 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 $

830

 million of unrealized losses related to fixed maturity

securities available for sale that have been in an unrealized loss position for less than one year were generally

comprised of domestic and foreign corporate securities, asset backed securities and agency residential mortgage

backed securities. Of these unrealized losses, $

723

 million were related to securities that were rated investment

grade by at least one nationally recognized rating agency. The $

301

 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 $

273

 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 September 30, 2022, the unrealized losses are due to

changes in interest rates and non-issuer specific credit spreads and are not credit related. In addition, the

contractual terms of these securities do not permit these securities to be settled at a price less than their

amortized cost. 

The Company, given the size of its investment portfolio and capital position, does not have the intent to sell these

securities; and it is more likely than not that the Company will not have to sell the security before recovery of its

cost basis. In addition, all securities currently in an unrealized loss position are current with respect to principal

and interest payments.

The tables below display the aggregate fair value and gross unrealized depreciation of fixed maturity securities

available for sale, by security type and contractual maturity, in each case subdivided according to length of time

that individual securities had been in a continuous unrealized loss position for the periods indicated. The amounts

presented in the tables below include $

16

 million of fair value and $(

0.4

) million of gross unrealized depreciation

as of December 31, 2021 related to fixed maturity securities available for sale for which the Company has recorded

an allowance for credit losses.

Duration of Unrealized Loss at December 31, 2021 By Security Type

Less than 12 months

Greater than 12 months

Total

Gross

Gross

Gross

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

(Dollars in millions)

Value

Depreciation

Value

Depreciation

Value

Depreciation

Fixed maturity securities -available for sale

U.S. Treasury securities and obligations of 

 U.S. government agencies and corporations

$

267

$

(3)

$

-

$

-

$

267

$

(3)

Obligations of U.S. states and political subdivisions

51

(1)

3

-

54

(1)

Corporate securities

1,465

(25)

201

(6)

1,666

(31)

Asset-backed securities

1,891

(11)

38

-

1,929

(11)

Mortgage-backed securities

Commercial

139

(2)

35

(2)

174

(4)

Agency residential

699

(7)

168

(3)

867

(10)

Non-agency residential

1

-

-

-

2

-

Foreign government securities

200

(5)

15

(2)

215

(7)

Foreign corporate securities

677

(17)

33

(2)

710

(18)

Total fixed maturity securities

$

5,390

$

(71)

$

492

$

(15)

$

5,882

$

(86)

(Some amounts may not reconcile due to rounding.)

11

Duration of Unrealized Loss at December 31, 2021 By Maturity

Less than 12 months

Greater than 12 months

Total

Gross

Gross

Gross

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

(Dollars in millions)

Value

Depreciatio

n

Value

Depreciatio

n

Value

Depreciatio

n

Fixed maturity securities - available for sale

Due in one year or less

$

81

$

(2)

$

36

$

(4)

$

117

$

(6)

Due in one year through five years

1,209

(19)

154

(3)

1,364

(22)

Due in five years through ten years

853

(21)

34

(2)

887

(23)

Due after ten years

517

(10)

27

(1)

543

(11)

Asset-backed securities

1,891

(11)

38

-

1,929

(11)

Mortgage-backed securities

839

(9)

203

(5)

1,042

(14)

Total fixed maturity securities

$

5,390

$

(71)

$

492

$

(15)

$

5,882

$

(86)

(Some amounts may not reconcile due to rounding.)

The aggregate fair value and gross unrealized losses related to investments in an unrealized loss position at

December 31, 2021 were $

5.9

 billion and $

86

 million, respectively. The fair value of securities for the issuer (the

United States government) whose securities comprised the largest unrealized loss position at December 31, 2021,

did not exceed

2.1

% of the overall fair value of the Company’s fixed maturity securities available for sale. The fair

value of the securities for the issuer with the second largest unrealized loss comprised less than

0.4

% 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 $

71

 million of unrealized losses related

to fixed maturity securities that have been in an unrealized loss position for less than one year were generally

comprised of domestic and foreign corporate securities, foreign government securities, asset backed securities and

agency residential mortgage backed securities. Of these unrealized losses, $

62

 million were related to securities

that were rated investment grade by at least one nationally recognized rating agency. The $

15

 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 $

12

 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 tables below for the periods indicated:

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Fixed maturities

$

129

$

83

$

339

$

260

Equity securities

7

4

15

10

Short-term investments and cash

4

-

4

-

Other invested assets

Limited partnerships

(25)

82

63

260

Dividends from preferred shares of affiliate

8

8

23

23

Other 

11

31

37

63

Gross investment income before adjustments

132

208

482

617

Funds held interest income (expense)

1

1

5

7

Interest income from Parent

3

2

7

4

Gross investment income 

137

210

494

629

Investment expenses

(13)

(13)

(37)

(36)

Net investment income

$

124

$

197

$

457

$

593

(Some amounts may not reconcile due to rounding.)

12

The Company records results from limited partnership investments on the equity method of accounting with

changes in value reported through net investment income. The net investment income from limited partnerships is

dependent upon the Company’s share of the net asset values of interests underlying each limited partnership. Due

to the timing of receiving financial information from these partnerships, the results are generally reported on a

one month or quarter lag. If the Company determines there has been a significant decline in value of a limited

partnership during this lag period, a loss will be recorded in the period in which the Company identifies the decline. 

The Company had contractual commitments to invest up to an additional $

1.1

 billion in limited partnerships and

private placement loan securities at September 30, 2022. These commitments will be funded when called in

accordance with the partnership and loan agreements, which have investment periods that expire, unless

extended, through

2026

.

The Company participates in a private placement liquidity sweep facility (“the facility”). The primary purpose of the

facility is to enhance the Company’s return on its short-term investments and cash positions. The facility invests in

high quality, short-duration securities and permits daily liquidity. The Company consolidates its participation in the

facility. As of September 30, 2022, the fair value of investments in the facility consolidated within the Company’s

balance sheets was $

241

 million. 

Other invested assets, at fair value, as of September 30, 2022 and December 31, 2021, were comprised of

preferred shares held in Everest Preferred International Holdings, Ltd. (“Preferred Holdings”), a wholly-owned

subsidiary of Group.

Variable Interest Entities

The Company is engaged with various special purpose entities and other entities that are deemed to be VIEs

primarily as an investor through normal investment activities but also as an investment manager. A VIE is an entity

that either has investors that lack certain essential characteristics of a controlling financial interest, such as simple

majority kick-out rights, or lacks sufficient funds to finance its own activities without financial support provided by

other entities. The Company performs ongoing qualitative assessments of its VIEs to determine whether the

Company has a controlling financial interest in the VIE and therefore is the primary beneficiary. The Company is

deemed to have a controlling financial interest when it has both the ability to direct the activities that most

significantly impact the economic performance of the VIE and the obligation to absorb losses or right to receive

benefits from the VIE that could potentially be significant to the VIE. Based on the Company’s assessment, if it

determines it is the primary beneficiary, the Company consolidates the VIE in the Company’s Consolidated

Financial Statements. As of September 30, 2022 and December 31, 2021, the Company did not hold any securities

for which it is the primary beneficiary.

The Company, through normal investment activities, makes passive investments in general and limited

partnerships and other alternative investments. For these non-consolidated VIEs, the Company has determined it

is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic

performance of the investments. The Company’s maximum exposure to loss as of September 30, 2022 and

December 31, 2021 is limited to the total carrying value of $

1.8

 billion and $

1.7

 billion, respectively, which are

included in general and limited partnerships and other alternative investments in Other Invested Assets in the

Company's Consolidated Balance Sheets. As of September 30, 2022, the Company has outstanding commitments

totaling $

766

 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 reported in fixed maturities available-for-sale and fixed maturities held to maturity. 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

13

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

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Fixed maturity securities:

Allowances for credit losses

$

(12)

$

(7)

$

(12)

$

(30)

Net realized gains (losses) from dispositions

(45)

3

(60)

11

Equity securities, fair value:

Net realized gains (losses) from dispositions

57

-

19

6

Gains (losses) from fair value adjustments

(134)

(4)

(451)

137

Other invested assets

6

2

10

6

Other invested assets, fair value:

Gains (losses) from fair value adjustments

(111)

(44)

(350)

137

Short-term investment gains (losses)

1

-

1

-

Total net gains (losses) on investments

$

(237)

$

(51)

$

(842)

$

267

(Some amounts may not reconcile due to rounding.)

Roll Forward of Allowance for Credit Losses – Fixed maturities

Three Months Ended September 30, 2022

Nine Months Ended September 30, 2022

Asset Backed

Securities

Foreign

Corporate

Securities

Asset Backed

Securities

Foreign

Corporate

Securities

Corporate

Securities

Corporate

Securities

Total

Total

(Dollars in millions)

Beginning Balance

$

(26)

$

-

$

(2)

$

(28)

$

(19)

$

(8)

$

-

$

(27)

Credit losses on securities where credit

losses were not previously recorded

(2)

(6)

(1)

(9)

(9)

(6)

(2)

(17)

Increases in allowance on previously

impaired securities

(3)

-

-

(3)

(4)

-

-

(4)

Decreases in allowance on previously 

impaired securities

-

-

-

-

-

-

-

-

Reduction in allowance due to disposals

-

-

-

-

1

8

1

9

Balance as of September 30, 2022

$

(31)

$

(6)

$

(2)

$

(39)

$

(31)

$

(6)

$

(2)

$

(39)

(Some amounts may not reconcile due to rounding.)

14

Roll Forward of Allowance for Credit Losses – Fixed maturities

Three Months Ended September 30, 2021

Nine Months Ended September 30, 2021

Asset

Asset

Corporate

Backed

Corporate

Backed

Securities

Securities

Total

Securities

Securities

Total

(Dollars in millions)

Beginning Balance

$

(18)

$

(5)

$

(24)

$

(1)

$

-

$

(2)

Credit losses on securities where credit

losses were not previously recorded

(5)

-

(5)

(21)

(5)

(26)

Increases in allowance on previously

impaired securities

(1)

(3)

(4)

(2)

(3)

(5)

Decreases in allowance on previously 

impaired securities

-

-

-

-

-

-

Reduction in allowance due to disposals

1

-

1

2

-

2

Balance as of September 30, 2021

$

(23)

$

(8)

$

(31)

$

(23)

$

(8)

$

(31)

(Some amounts may not reconcile due to rounding.)

The proceeds and split between gross gains and losses from dispositions of fixed maturity and equity securities, are

presented in the table below for the periods indicated:

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Proceeds from sales of fixed maturity securities, available for sale

$

301

$

152

$

812

$

394

Gross gains from dispositions

1

9

7

24

Gross losses from dispositions

(46)

(6)

(67)

(13)

Proceeds from sales of equity securities

$

591

$

104

$

1,016

$

450

Gross gains from dispositions

59

3

67

18

Gross losses from dispositions

(2)

(3)

(48)

(11)

(Some amounts may not reconcile due to rounding.)

15

4. RESERVES FOR LOSSES, LAE AND FUTURE POLICY BENEFIT RESERVE 

Activity in the reserve for losses and LAE is summarized for the periods indicated:

Nine Months Ended September 30,

(Dollars in millions)

2022

2021

Gross reserves beginning of period

$

13,121

$

11,578

Less reinsurance recoverables on unpaid losses

(3,651)

(3,951)

Net reserves beginning of period

9,470

7,627

Incurred related to:

Current year

4,606

4,106

Prior years

18

(4)

Total incurred losses and LAE

4,624

4,103

Paid related to:

Current year 

1,502

1,118

Prior years

1,303

1,203

Total paid losses and LAE

2,805

2,321

Foreign exchange/translation adjustment 

(70)

(20)

Net reserves end of period

11,221

9,389

Plus reinsurance recoverables on unpaid losses

3,628

3,839

Gross reserves end of period

$

14,849

$

13,228

(Some amounts may not reconcile due to rounding.)

Current year incurred losses were $

4.6

 billion and $

4.1

 billion for the nine months ended September 30, 2022 and

2021, respectively. Gross and net reserves increased for the nine months ended September 30, 2022, reflecting an

increase in underlying exposure due to earned premium growth year over year, the impact of an increase of $

132

million in catastrophe losses in 2022 compared to 2021 and the impact of $

25

 million of incurred losses related to

the Ukraine/Russia war. Prior year incurred development of $

18

 million is primarily driven by unfavorable

movement on prior year catastrophes .

The war in the Ukraine is ongoing and an evolving event. Economic and legal sanctions have been levied against

Russia, specific named individuals and entities connected to the Russian government, as well as businesses located

in the Russian Federation and/or owned by Russian nationals by numerous countries, including the United States.

The significant political and economic uncertainty surrounding the war and associated sanctions have impacted

economic and investment markets both within Russia and around the world. The Company has recorded $

25

million of incurred underwriting losses related to the Ukraine and Russia conflict for the nine months ended

September 30, 2022.

5. 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. 

16

The levels in the hierarchy are defined as follows:

Level 1 Inputs to the valuation methodology are observable inputs that reflect unadjusted quoted prices for

identical assets or liabilities in an active market;

Level 2: Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active

markets, and inputs that are observable for the asset or liability, either directly or indirectly, for

substantially the full term of the financial instrument;

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The Company’s fixed maturity and equity securities are primarily managed by third party investment asset

managers. The investment asset managers managing publicly traded securities obtain prices from nationally

recognized pricing services. These services seek to utilize market data and observations in their evaluation process.

They use pricing applications that vary by asset class and incorporate available market information and when fixed

maturity securities do not trade on a daily basis the services will apply available information through processes

such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing. In addition, they

use model processes, such as the Option Adjusted Spread model to develop prepayment and interest rate

scenarios for securities that have prepayment features. 

The investment asset managers do not make any changes to prices received from either the pricing services or the

investment brokers. In addition, the investment asset managers have procedures in place to review the

reasonableness of the prices from the service providers and may request verification of the prices. The Company

also continually performs quantitative and qualitative analysis of prices, including but not limited to initial and

ongoing review of pricing methodologies, review of prices obtained from pricing services and third party

investment asset managers, review of pricing statistics and trends, and comparison of prices for certain securities

with a secondary price source for reasonableness. No material variances were noted during these price validation

procedures. In limited situations, where financial markets are inactive or illiquid, the Company may use its own

assumptions about future cash flows and risk-adjusted discount rates to determine fair value. At September 30,

2022, $

1.6

 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, 2021, $

2.0

 billion of fixed maturities were fair valued

using unobservable inputs. 

The Company internally manages a public equity portfolio which had a fair value at September 30, 2022 and

December 31, 2021 of $

1.2

 billion and $

1.3

 billion, respectively. During the fourth quarter of 2021, the Company

began to internally manage a portfolio of collateralized loan obligations included in asset-backed securities

available for sale, which had a fair value of $

2.4

 billion and $

2.0

 billion at September 30, 2022 and December 31,

2021, respectively. All prices for these securities were obtained from publicly published sources or nationally

recognized pricing vendors. 

Equity securities denominated in U.S. currency with quoted prices in active markets for identical assets are

categorized as Level 1 since the quoted prices are directly observable. Equity securities traded on foreign

exchanges are categorized as Level 2 due to the added input of a foreign exchange conversion rate to determine

fair value. The Company uses foreign currency exchange rates published by nationally recognized sources.

Fixed maturity securities listed in the tables below are generally categorized as Level 2, since a particular security

may not have traded but the pricing services are able to use valuation models with observable market inputs such

as interest rate yield curves and prices for similar fixed maturity securities in terms of issuer, maturity and

seniority. For foreign government securities and foreign corporate securities, the fair values 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.

17

In addition to the valuations from investment managers, some of the fixed maturities with fair values categorized

as Level 3 result when prices are not available from the nationally recognized pricing services. The asset 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.

18

The following table presents the fair value measurement levels for all assets, which the Company has recorded at

fair value as of the period indicated:

Fair Value Measurement Using:

Quoted Prices

in Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

Assets

Inputs

Inputs

(Dollars in millions)

September 30, 2022

(Level 1)

(Level 2)

(Level 3)

Assets:

Fixed maturities, available for sale

U.S. Treasury securities and obligations of

 U.S. government agencies and corporations

$

562

$

-

$

562

$

-

Obligations of U.S. states and political subdivisions

481

-

481

-

Corporate securities

3,564

-

2,845

719

Asset-backed securities

3,645

-

2,752

893

Mortgage-backed securities

Commercial

495

-

495

-

Agency residential

1,367

-

1,367

-

Non-agency residential

3

-

3

-

Foreign government securities

626

-

626

-

Foreign corporate securities

1,326

-

1,310

16

Total fixed maturities, available for sale

12,070

-

10,442

1,628

Equity securities, fair value

1,258

1,212

46

-

Other invested assets, fair value

1,680

-

-

1,680

(Some amounts may not reconcile due to rounding.)

19

Fair Value Measurement Using:

Quoted Prices

in Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

Assets

Inputs

Inputs

(Dollars in millions)

December 31, 2021

(Level 1)

(Level 2)

(Level 3)

Assets:

Fixed maturities, available for sale

U.S. Treasury securities and obligations of

 U.S. government agencies and corporations

$

663

$

-

$

663

$

-

Obligations of U.S. states and political subdivisions

587

-

587

-

Corporate securities

4,075

-

3,345

730

Asset-backed securities

3,466

-

2,215

1,251

Mortgage-backed securities

Commercial

603

-

603

-

Agency residential

1,261

-

1,261

-

Non-agency residential

4

-

4

-

Foreign government securities

692

-

692

-

Foreign corporate securities

1,510

-

1,494

16

Total fixed maturities, available for sale

12,860

-

10,863

1,997

Equity securities, fair value

1,758

1,722

36

-

Other invested assets, fair value

2,031

-

-

2,031

(Some amounts may not reconcile due to rounding.)

In addition, $

309

 million and $

287

 million of investments within other invested assets on the consolidated balance

sheets as of September 30, 2022 and December 31, 2021, respectively, are not included within the fair value

hierarchy tables as the assets are measured at NAV as a practical expedient to determine fair value. 

The following tables present the activity under Level 3, fair value measurements using significant unobservable

inputs for fixed maturities available for sale, for the periods indicated:

Total Fixed Maturities, Available for Sale

Three Months Ended September 30, 2022

Nine Months Ended September 30, 2022

Corporate

Asset Backed

Foreign

Corporate

Asset Backed

Foreign

(Dollars in millions)

Securities

Securities

CMBS

Corporate

Total

Securities

Securities

CMBS

Corporate

Total

Beginning balance fixed maturities

$

862

$

1,255

$

6

$

40

$

2,163

$

730

$

1,251

$

-

$

16

$

1,997

Total gains or (losses) (realized/unrealized)

Included in earnings

(3)

-

-

-

(3)

(6)

-

-

-

(6)

Included in other comprehensive

 income (loss)

(6)

65

-

-

59

(13)

(11)

-

(4)

(28)

Purchases, issuances and settlements

27

159

-

-

186

42

387

6

8

443

Transfers in (out) of Level 3 and reclassification of

securities in/(out) investment categories 

(163)

(587)

(6)

(24)

(779)

(35)

(735)

(6)

(4)

(779)

Ending balance

$

719

$

893

$

-

$

16

$

1,628

$

719

$

893

$

-

$

16

$

1,628

The amount of total gains or losses for the

 period included in earnings (or changes in

 net assets) attributable to the change in

 unrealized gains or losses relating to

 assets still held at the reporting date

$

(3)

$

-

$

-

$

-

$

(3)

$

(8)

$

8

$

-

$

-

$

-

(Some amounts may not reconcile due to rounding.)

20

Total Fixed Maturities, Available for Sale

Three Months Ended September 30, 2021

Nine Months Ended September 30, 2021

Corporate

Asset Backed

Foreign

Corporate

Asset Backed

Foreign

(Dollars in millions)

Securities

Securities

Corporate

Total

Securities

Securities

Corporate

Total

Beginning balance fixed maturities

$

635

$

815

$

5

$

1,455

$

631

$

623

$

6

$

1,260

Total gains or (losses) (realized/unrealized)

Included in earnings

3

(3)

-

-

(12)

(7)

-

(19)

Included in other comprehensive income (loss)

(1)

-

-

(2)

6

4

-

10

Purchases, issuances and settlements

87

192

-

279

99

384

(1)

482

Transfers in (out) of Level 3 and reclassification of

securities in/(out) investment categories 

-

-

-

-

-

-

-

-

Ending balance

$

723

$

1,004

$

5

$

1,732

$

723

$

1,004

$

5

$

1,732

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

$

(3)

$

-

$

(2)

$

(17)

$

(8)

$

-

$

(24)

(Some amounts may not reconcile due to rounding.)

The $

779

 million shown as transfers in/(out) of Level 3 and reclassification of securities in/(out) of investment

categories for the three and nine months ended September 30, 2022 relate mainly to previously designated Level 3

securities that the Company has reclassified from “fixed maturities – available for sale” to “fixed maturities – held

to maturity” during the third quarter of 2022. As “fixed maturities – held to maturity" are carried at amortized

cost, net of credit allowances rather than at fair value as “fixed maturities – available for sale”, these securities are

no longer included within the fair value hierarchy table or in the roll-forward of Level 3 securities. The fair values of

these securities are determined in a similar manner as the Company’s fixed maturity securities available for sale as

described above. The fair values of these securities incorporate the use of significant unobservable inputs and

therefore are classified as Level 3 within the fair value hierarchy as of September 30, 2022.

6. COMMITMENTS AND CONTINGENCIES

In the ordinary course of business, the Company is involved in lawsuits, arbitrations and other formal and informal

dispute resolution procedures, the outcomes of which will determine the Company’s rights and obligations under

insurance and reinsurance agreements. In some disputes, the Company seeks to enforce its rights under an

agreement or to collect funds owing to it. In other matters, the Company is resisting attempts by others to collect

funds or enforce alleged rights. These disputes arise from time to time and are ultimately resolved through both

informal and formal means, including negotiated resolution, arbitration and litigation. In all such matters, the

Company believes that its positions are legally and commercially reasonable. The Company considers the statuses

of these proceedings when determining its reserves for unpaid loss and loss adjustment expenses. 

Aside from litigation and arbitrations related to these insurance and reinsurance agreements, the Company is not a

party to any other material litigation or arbitration.

21

7. COMPREHENSIVE INCOME (LOSS)

The following tables present the components of comprehensive income (loss) in the consolidated statements of

operations and comprehensive income (loss) for the periods indicated:

Three Months Ended

September 30, 2022

Nine Months Ended

September 30, 2022

(Dollars in millions)

Before Tax

Tax Effect

Net of Tax

Before Tax

Tax Effect

Net of Tax

Unrealized appreciation (depreciation) ("URA(D)") 

 on securities - non-credit related

$

(357)

75

$

(282)

$

(1,376)

288

$

(1,087)

Reclassification of net realized losses (gains) 

 included in net income (loss)

50

(11)

40

61

(13)

48

Foreign currency translation adjustments

(37)

8

(29)

(52)

11

(41)

Reclassification of amortization of net gain (loss) 

 included in net income (loss)

-

-

-

3

(1)

2

Total other comprehensive income (loss)

$

(343)

$

72

$

(271)

$

(1,364)

$

285

$

(1,078)

(Some amounts may not reconcile due to rounding)

Three Months Ended

September 30, 2021

Nine Months Ended

September 30, 2021

(Dollars in millions)

Before Tax

Tax Effect

Net of Tax

Before Tax

Tax Effect

Net of Tax

Unrealized appreciation (depreciation) ("URA(D)") 

 on securities - non-credit related

$

(55)

12

$

(43)

$

(139)

29

$

(110)

Reclassification of net realized losses (gains) 

 included in net income (loss)

3

(1)

2

13

(3)

10

Foreign currency translation adjustments

(26)

5

(21)

(6)

1

(5)

Reclassification of amortization of net gain (loss) 

 included in net income (loss)

2

-

2

7

(2)

6

Total other comprehensive income (loss)

$

(77)

$

16

$

(61)

$

(125)

$

26

$

(99)

(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

Nine Months Ended

Affected line item within the

September 30,

September 30,

statements of operations and 

AOCI component

2022

2021

2022

2021

comprehensive income (loss)

(Dollars in millions)

URA(D) on securities

$

50

$

3

$

61

$

13

Other net gains (losses) on investments

(11)

(1)

(13)

(3)

Income tax expense (benefit)

$

40

$

2

$

48

$

10

Net income (loss)

Benefit plan net gain (loss)

$

-

$

2

$

3

$

7

Other underwriting expenses

-

-

(1)

(2)

Income tax expense (benefit)

$

-

$

2

$

2

$

6

Net income (loss)

(Some amounts may not reconcile due to rounding)

22

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

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Beginning balance of URA (D) on securities

$

(675)

$

255

$

122

$

313

Current period change in URA (D) of investments - non-credit related

(242)

(41)

(1,039)

(100)

Ending balance of URA (D) on securities

(917)

213

(917)

213

Beginning balance of foreign currency translation adjustments

8

45

20

29

Current period change in foreign currency translation adjustments

(29)

(21)

(41)

(5)

Ending balance of foreign currency translation adjustments 

(21)

24

(21)

24

Beginning balance of benefit plan net gain (loss)

(50)

(70)

(50)

(74)

Current period change in benefit plan net gain (loss)

-

2

2

6

Ending balance of benefit plan net gain (loss)

(49)

(68)

(49)

(68)

Ending balance of accumulated other comprehensive income (loss)

$

(987)

$

169

$

(987)

$

169

(Some amounts may not reconcile due to rounding.)

8. COLLATERALIZED REINSURANCE AND TRUST AGREEMENTS 

A subsidiary of the Company, Everest Reinsurance company (“Everest Re”), has established a trust agreement,

which effectively uses Everest Re’s investments as collateral, as security for assumed losses payable to non-

affiliated ceding companies. At September 30, 2022, the total amount on deposit in the trust account was

$

632

 million which includes $

78

 million of restricted cash.

23

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 2018-1 Class A-2

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/30/2018

5/5/2023

$

63

Aggregate

Series 2018-1 Class B-2

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/30/2018

5/5/2023

200

Aggregate

Series 2019-1 Class A-1

US, Canada, Puerto Rico – Named Storm and Earthquake Events

12/12/2019

12/19/2023

150

Occurrence

Series 2019-1 Class B-1

US, Canada, Puerto Rico – Named Storm and Earthquake Events

12/12/2019

12/19/2023

275

Aggregate

Series 2019-1 Class A-2

US, Canada, Puerto Rico – Named Storm and Earthquake Events

12/12/2019

12/19/2024

150

Occurrence

Series 2019-1 Class B-2

US, Canada, Puerto Rico – Named Storm and Earthquake Events

12/12/2019

12/19/2024

275

Aggregate

Series 2021-1 Class A-1

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/8/2021

4/21/2025

150

Occurrence

Series 2021-1 Class B-1

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/8/2021

4/21/2025

85

Aggregate

Series 2021-1 Class C-1

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/8/2021

4/21/2025

85

Aggregate

Series 2021-1 Class A-2

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/8/2021

4/20/2026

150

Occurrence

Series 2021-1 Class B-2

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/8/2021

4/20/2026

90

Aggregate

Series 2021-1 Class C-2

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/8/2021

4/20/2026

90

Aggregate

Series 2022-1 Class A

US, Canada, Puerto Rico – Named Storm and Earthquake Events

6/22/2022

6/22/2025

300

Aggregate

Total available limit as of September 30, 2022

$

2,063

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. Currently, none of the published insured loss estimates for catastrophe

events during the applicable covered periods of the various agreements have exceeded the single event retentions

or aggregate retentions under the terms of the agreements that would result in a recovery. 

24

Kilimanjaro has financed the various property catastrophe reinsurance coverages by issuing catastrophe bonds to

unrelated, external investors. The proceeds from the issuance of the Notes listed below are held in reinsurance

trusts throughout the duration of the applicable reinsurance agreements and invested solely in US government

money market funds with a rating of at least “AAAm” by Standard & Poor’s.

(Dollars in millions)

Note Series

Issue Date

Maturity Date

Amount

Series 2018-1 Class A-2

4/30/2018

5/5/2023

$

63

Series 2018-1 Class B-2

4/30/2018

5/5/2023

200

Series 2019-1 Class A-1

12/12/2019

12/19/2023

150

Series 2019-1 Class B-1

12/12/2019

12/19/2023

275

Series 2019-1 Class A-2

12/12/2019

12/19/2024

150

Series 2019-1 Class B-2

12/12/2019

12/19/2024

275

Series 2021-1 Class A-1

4/8/2021

4/21/2025

150

Series 2021-1 Class B-1

4/8/2021

4/21/2025

85

Series 2021-1 Class C-1

4/8/2021

4/21/2025

85

Series 2021-1 Class A-2

4/8/2021

4/20/2026

150

Series 2021-1 Class B-2

4/8/2021

4/20/2026

90

Series 2021-1 Class C-2

4/8/2021

4/20/2026

90

Series 2022-1 Class A

6/22/2022

6/22/2025

300

$

2,063

9. 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.

September 30, 2022

December 31, 2021

Consolidated

Consolidated

Principal 

Balance Sheet

Fair

Balance Sheet

Fair

(Dollars in millions)

Date Issued

Date Due

Amounts

Amount

Value

Amount

Value

4.868

% Senior notes

06/05/2014

06/01/2044

400

$

397

$

339

$

397

$

504

3.5

% Senior notes

10/07/2020

10/15/2050

1,000

980

669

980

1,055

3.125

% Senior notes

10/04/2021

10/15/2052

1,000

969

627

968

983

2,400

$

2,347

$

1,635

$

2,346

$

2,542

Interest expense incurred in connection with these senior notes is as follows for the periods indicated:

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Interest expense incurred

4.868

% Senior notes

$

5

$

5

$

15

$

15

Interest expense incurred

3.5

% Senior notes

9

9

26

26

Interest expense incurred

3.125

% Senior notes

8

-

24

-

$

22

$

14

$

65

$

41

25

10. LONG TERM SUBORDINATED NOTES

The table below displays Holdings’ outstanding fixed to floating rate long term subordinated notes. Fair value is

based on quoted market prices, but due to limited trading activity, these subordinated notes are considered Level

2 in the fair value hierarchy.

September 30, 2022

December 31, 2021

Original

Consolidated

Consolidated

Principal

Maturity Date

Balance

Fair

Balance

Fair

(Dollars in millions)

Date Issued

Amount

Scheduled

Final

Sheet Amount

Value

Sheet Amount

Value

Long term subordinated notes

04/26/2007

$

400

05/15/2037

05/01/2067

$

218

$

179

$

224

$

216

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 consecutive years

. Deferred interest will accumulate interest at the applicable rate compounded

quarterly for periods from and including May 15, 2017. The reset quarterly interest rate for August 15, 2022 to

November 14, 2022 is

5.29

%. 

Holdings may redeem the long term subordinated notes on or after

May 15, 2017

, in whole or in part at

100

% of

the principal amount plus accrued and unpaid interest; however, redemption on or after the scheduled maturity

date and prior to

May 1, 2047

 is subject to a replacement capital covenant. This covenant is for the benefit of

certain senior note holders and it mandates that Holdings receive proceeds from the sale of another subordinated

debt issue, of at least similar size, before it may redeem the subordinated notes. The Company’s

4.868

% senior

notes, due on

June 1, 2044

,

3.5

% senior notes due on

October 15, 2050

 and

3.125

% senior notes due on

October

15, 2052

 are the Company’s long term indebtedness that rank senior to the long term subordinated notes.

In 2009, the Company had reduced its outstanding amount of long term subordinated notes by $

161

 million

through the initiation of a cash tender offer for any and all of the long term subordinated notes. In addition, the

Company repurchased and retired $

13

 million of the long term subordinated notes in 2020. During the third

quarter of 2022, the Company repurchased and retired $

6

 million of the outstanding long term subordinated

notes. The Company realized a gain of $

1

 million on the transaction.

Interest expense incurred in connection with these long term subordinated notes is as follows for the periods

indicated:

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Interest expense incurred

$

3

$

1

$

6

$

4

11. FEDERAL HOME LOAN BANK MEMBERSHIP

Everest Re is a member of the Federal Home Loan Bank of New York (“FHLBNY”), which allows Everest Re to

borrow up to

10

% of its statutory admitted assets. As of September 30, 2022, Everest Re had admitted assets of

approximately $

22.0

 billion which provides borrowing capacity of up to approximately $

2.2

 billion. As of

September 30, 2022, Everest Re has $

519

 million of borrowings outstanding, with maturities in November and

December 2022 and interest payable at interest rates between

0.53

% and

0.65

%. Everest Re incurred interest

expense of $

0.8

 million and $

0.3

 million for the three months ended September 30, 2022 and 2021, respectively.

Everest Re incurred interest expense of $

2.3

 million and $

0.8

 million for the nine months ended September 30,

2022 and 2021, respectively. The FHLBNY membership agreement requires that

4.5

% of borrowed funds be used

to acquire additional membership stock.

26

12. SEGMENT REPORTING

The Reinsurance operation writes worldwide property and casualty reinsurance and specialty lines of business, on

both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies. 

Business is written in the United States as well as through branches in Canada and Singapore. The Insurance

operation writes property and casualty insurance directly and through brokers, surplus lines brokers and general

agents within the United States. 

These segments are managed independently, but conform with corporate guidelines with respect to pricing, risk

management, control of aggregate catastrophe exposures, capital, investments and support operations. 

Management generally monitors and evaluates the financial performance of these operating segments based upon

their underwriting results. 

Underwriting results include earned premium less losses and LAE incurred, commission and brokerage expenses

and other underwriting expenses. The Company measures its underwriting results using ratios, in particular loss,

commission and brokerage and other underwriting expense ratios, which, respectively, divide incurred losses,

commissions and brokerage and other underwriting expenses by premiums earned. 

The Company does not maintain separate balance sheet data for its operating segments. Accordingly, the

Company does not review and evaluate the financial results of its operating segments based upon balance sheet

data. 

The following tables present the underwriting results for the operating segments for the periods indicated:

Three Months Ended September 30, 2022

Nine Months Ended September 30, 2022

(Dollars in millions)

Reinsurance

Insurance

Total 

Reinsurance

Insurance

Total 

Gross written premiums

$

1,681

$

905

$

2,585

$

4,454

$

2,773

$

7,227

Net written premiums

1,506

722

2,228

3,936

2,083

6,019

Premiums earned

$

1,398

$

706

$

2,104

$

3,902

$

1,985

$

5,887

Incurred losses and LAE

1,531

564

2,094

3,227

1,398

4,624

Commission and brokerage

337

85

423

985

231

1,216

Other underwriting expenses

33

94

127

97

269

365

Underwriting gain (loss)

$

(504)

$

(37)

$

(541)

$

(406)

$

87

$

(319)

Net investment income

124

457

Net gains (losses) on investments

(237)

(842)

Corporate expense

(5)

(17)

Interest, fee and bond issue cost amortization expense

(26)

(74)

Other income (expense) 

7

(2)

Income (loss) before taxes

$

(677)

$

(796)

(Some amounts may not reconcile due to rounding)

27

Three Months Ended September 30, 2021

Nine Months Ended September 30, 2021

(Dollars in millions)

Reinsurance

Insurance

Total 

Reinsurance

Insurance

Total 

Gross written premiums

$

1,693

$

831

$

2,524

$

4,552

$

2,422

$

6,974

Net written premiums

1,461

608

2,069

3,961

1,802

5,763

Premiums earned

$

1,280

$

571

$

1,851

$

3,690

$

1,625

$

5,315

Incurred losses and LAE

1,208

445

1,653

2,917

1,185

4,103

Commission and brokerage

320

69

389

935

190

1,126

Other underwriting expenses

32

77

110

101

228

329

Underwriting gain (loss)

$

(279)

$

(21)

$

(300)

$

(264)

$

22

$

(243)

Net investment income

197

593

Net gains (losses) on investments

(51)

267

Corporate expense

(11)

(23)

Interest, fee and bond issue cost amortization expense

(16)

(47)

Other income (expense) 

10

12

Income (loss) before taxes

$

(171)

$

560

(Some amounts may not reconcile due to rounding)

The Company produces business in the U.S. and internationally. The net income deriving from assets residing in

the individual foreign countries in which the Company writes business are not identifiable in the Company’s

financial records. Based on gross written premium, the table below presents the largest country, other than the

U.S., in which the Company writes business, for the periods indicated:

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Canada gross written premiums

$

103

$

60

$

252

$

164

No other country represented more than

5

% of the Company’s revenues.

13. RELATED-PARTY TRANSACTIONS

Parent

Group entered into a $

300

 million long term note agreement with Everest Re as of December 17, 2019. The note

pays interest annually at a rate of

1.69

% and is scheduled to mature in December, 2028. The Company recognized

interest income related to this long term note of $

1.3

 million for the three months ended September 30, 2022 and

2021, respectively and $

3.8

 million for the nine months ended September 30, 2022 and 2021, respectively. 

Group entered into a $

200

 million long term note agreement with Everest Re as of August 5, 2021. The note pays

interest annually at a rate of

1.00

% and is scheduled to mature in August, 2030. The Company recognized interest

income related to this long term note of $

0.5

 million and $

0.3

 million for the three months ended September 30,

2022 and 2021, respectively and $

1.5

 million and $

0.3

 million for the nine months ended September 30, 2022 and

2021, respectively. 

Group entered into a $

215

 million long term note agreement with Holdings as of June 29, 2022. The note pays

interest annually at a rate of

3.11

% and is scheduled to mature in June, 2052. The Company recognized interest

income related to this long term note of $

1.7

 million for both the three and nine months ended September 30,

2022.

28

Group’s Board of Directors approved an amended share repurchase program authorizing Group and/or its

subsidiary Holdings to purchase Group’s common shares through open market transactions, privately negotiated

transactions or both. The most recent amendment from the Board, approved on May 22, 2020, increased the

cumulative number of shares that may be repurchased under the program to

32

 million shares.

Holdings had purchased and held

9,719,971

 Common Shares of Group, which were purchased in the open market

between February 2007 and March 2011.

In December, 2015, Holdings transferred the

9,719,971

 Common Shares of Group, which it held as other invested

assets, at fair value, valued at $

1.8

 billion, to Preferred Holdings in exchange for

1,773.214

 preferred shares of

Preferred Holdings with a $

1

 million par value and

1.75

% annual dividend rate. After the exchange, Holdings no

longer holds any shares or has any ownership interest in Group. 

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 and on the Parent shares that are

reported as net investment income in the consolidated statements of operations and comprehensive income (loss)

for the period indicated.

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Dividends received on preferred stock of affiliate

$

8

$

8

$

23

$

23

Affiliates

The Company has engaged in reinsurance transactions with Everest Reinsurance (Bermuda), Ltd. (“Bermuda Re”),

Everest Reinsurance Company (Ireland) dac (“Ireland Re”), Everest Insurance (Ireland) dac (“Ireland Insurance”),

Everest International Reinsurance Ltd. (“Everest International”), Everest Insurance Company of Canada (“Everest

Canada”), Lloyd’s Syndicate 2786 and Mt. Logan Re, which are affiliated companies primarily driven by enterprise

risk and capital management considerations under which business is ceded at market rates and terms.

The table below represents affiliated quota share reinsurance agreements ("whole account quota share") for all

new and renewal business for the indicated coverage period:

(Dollars in millions)

Single 

Percent

Assuming

Occurrence

Aggregate

Coverage Period

Ceding Company

Ceded 

Company

Type of Business

Limit

Limit 

01/01/2010-12/31/2010

Everest Re

44.0

%

Bermuda Re

property / casualty business

150

325

01/01/2011-12/31/2011

Everest Re

50.0

%

Bermuda Re

property / casualty business

150

300

01/01/2012-12/31/2014

Everest Re

50.0

%

Bermuda Re

property / casualty business

100

200

01/01/2015-12/31/2016

Everest Re

50.0

%

Bermuda Re

property / casualty business

163

325

01/01/2017-12/31/2017

Everest Re

60.0

%

Bermuda Re

property / casualty business

219

438

01/01/2010-12/31/2010

Everest Re- Canadian Branch

60.0

%

Bermuda Re

property business

350

(1)

-

01/01/2011-12/31/2011

Everest Re- Canadian Branch

60.0

%

Bermuda Re

property business

350

(1)

-

01/01/2012-12/31/2012

Everest Re- Canadian Branch

75.0

%

Bermuda Re

property / casualty business

206

(1)

413

(1)

01/01/2013-12/31/2013

Everest Re- Canadian Branch

75.0

%

Bermuda Re

property / casualty business

150

(1)

413

(1)

01/01/2014-12/31/2017

Everest Re- Canadian Branch

75.0

%

Bermuda Re

property / casualty business

263

(1)

413

(1)

01/01/2012-12/31/2017

Everest Canada

80.0

%

Everest Re- Canadian

Branch

property business

-

-

01/01/2020

Everest International Assurance

100.0

%

Bermuda Re

life business

-

-

(1)

Amounts shown are Canadian dollars.

Effective January 1, 2018, Everest Re entered into a twelve month whole account aggregate stop loss reinsurance

contract (“stop loss agreement”) with Bermuda Re. The stop loss agreement provides coverage for ultimate net

29

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, 2022. 

Everest Re entered into a catastrophe excess of loss reinsurance contract with Bermuda Re (UK Branch), effective

January 1, 2021 through December 31, 2021, subject to renewal thereafter. The contract provides Bermuda Re (UK

Branch), with up to £

100

 million of reinsurance coverage for each catastrophe occurrence above £

40

 million. 

Bermuda Re (UK Branch) paid Everest Re £

4

 million for this coverage. This contract was most recently renewed

effective January 1, 2022.

Everest Re entered into a catastrophe excess of loss reinsurance contract with Ireland Re, effective February 1,

2021 through January 31, 2022, subject to renewal thereafter. The contract provides Ireland Re with up to €

145

million of reinsurance coverage for each catastrophe occurrence above €

16

 million. Ireland Re paid Everest Re €

10

million for this coverage. This contract was most recently renewed effective February 1, 2022.

The table below represents loss portfolio transfer (“LPT”) reinsurance agreements whereby net insurance

exposures and reserves were transferred to an affiliate.

(Dollars in millions)

Effective

Transferring

Assuming

% of Business or 

Covered Period 

Date

Company 

Company

Amount of Transfer

of Transfer

10/01/2001

Everest Re (Belgium Branch)

Bermuda Re

100

%

All years

10/01/2008

Everest Re

Bermuda Re

$

747

01/01/2002-12/31/2007

12/31/2017

Everest Re

Bermuda Re

$

970

All years

On December 31, 2017, the Company entered into a LPT agreement with Bermuda Re. The LPT agreement covers

subject loss reserves of $

2.3

 billion for accident years 2017 and prior. As a result of the LPT agreement, the

Company transferred $

1.0

 billion of cash and fixed maturity securities and transferred $

970

 million of loss reserves

to Bermuda Re. As part of the LPT agreement, Bermuda Re will provide an additional $

500

 million of adverse

development coverage on the subject loss reserves. As of September 30, 2022, and December 31, 2021, the

Company has a reinsurance recoverable of $

854

 million and $

856

 million, respectively, recorded on its balance

sheet due from Bermuda Re.

The following tables summarize the significant premiums and losses ceded and assumed by the Company to

affiliated entities:

Three Months Ended

Nine Months Ended

Bermuda Re

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Ceded written premiums

$

95

$

78

$

279

$

224

Ceded earned premiums

95

77

279

222

Ceded losses and LAE

(2)

12

(1)

3

Assumed written premiums

-

5

3

5

Assumed earned premiums

-

4

5

4

Assumed losses and LAE

-

-

-

-

Three Months Ended

Nine Months Ended

Ireland Re

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Assumed written premiums

$

2

$

7

$

6

$

13

Assumed earned premiums

2

7

6

12

Assumed losses and LAE

(4)

62

(2)

62

30

Three Months Ended

Nine Months Ended

Ireland Insurance

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Assumed written premiums

$

3

$

4

$

7

$

6

Assumed earned premiums

2

2

6

4

Assumed losses and LAE

1

1

3

2

The following table summarizes the premiums and losses that are ceded by the Company to Mt. Logan Re

segregated accounts and assumed by the Company from Mt. Logan Re segregated accounts.

Three Months Ended

Nine Months Ended

Mt. Logan Re Segregated Accounts

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Ceded written premiums

$

60

$

98

$

122

$

226

Ceded earned premiums

51

86

122

212

Ceded losses and LAE 

82

97

142

192

14. 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 approach for calculating its tax provision for

interim periods as prescribed by ASC 740-270, Interim Reporting. Under the estimated annual effective tax rate

approach, the estimated annual effective tax rate 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 effective tax rate.

15. SUBSEQUENT EVENTS

The Company has evaluated known recognized and non-recognized subsequent events. The Company does not

have any subsequent events to report.

31

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

Industry Conditions.

The worldwide reinsurance and insurance businesses are highly competitive, as well as cyclical by product and

market. As such, financial results tend to fluctuate with periods of constrained availability, higher rates and

stronger profits followed by periods of abundant capacity, lower rates and constrained profitability. Competition

in the types of reinsurance and insurance business that we underwrite is based on many factors, including the

perceived overall financial strength of the reinsurer or insurer, ratings of the reinsurer or insurer by A.M. Best

and/or Standard & Poor’s, underwriting expertise, the jurisdictions where the reinsurer or insurer is licensed or

otherwise authorized, capacity and coverages offered, premiums charged, other terms and conditions of the

reinsurance and insurance business offered, services offered, speed of claims payment and reputation and

experience in lines written. Furthermore, the market impact from these competitive factors related to reinsurance

and insurance is generally not consistent across lines of business, domestic and international geographical areas

and distribution channels. 

We compete in the U.S. and international reinsurance and insurance markets with numerous global competitors.

Our competitors include independent reinsurance and insurance companies, subsidiaries or affiliates of

established worldwide insurance companies, reinsurance departments of certain insurance companies, domestic

and international underwriting operations, and certain government sponsored risk transfer vehicles. Some of these

competitors have greater financial resources than we do and have established long term and continuing business

relationships, which can be a significant competitive advantage. In addition, the lack of strong barriers to entry

into the reinsurance business and recently, the securitization of reinsurance and insurance risks through capital

markets provide additional sources of potential reinsurance and insurance capacity and competition. 

Worldwide insurance and reinsurance market conditions historically have been competitive. Generally, there was

ample insurance and reinsurance capacity relative to demand, as well as additional capital from the capital

markets through insurance linked financial instruments. These financial instruments such as side cars, catastrophe

bonds and collateralized reinsurance funds, provided capital markets with access to insurance and reinsurance risk

exposure. The capital markets demand for these products was being primarily driven by a low interest

environment and the desire to achieve greater risk diversification and potentially higher returns on their

investments. This increased competition was generally having a negative impact on rates, terms and conditions;

however, the impact varies widely by market and coverage. Based on recent competitive behaviors in the

insurance and reinsurance activity, natural catastrophe events and the macroeconomic backdrop, there has been

some dislocation in the market which should have a positive impact on rates and terms and conditions generally,

though local market specificities can vary widely.

The increased frequency of catastrophe losses experienced throughout 2021 and thus far in 2022 appears to be

pressuring the increase of rates. As business activity continues to regain strength after the pandemic and current

macroeconomic uncertainty, rates appear to be firming in most lines of business, particularly in the casualty lines

that had seen significant losses such as excess casualty and directors’ and officers’ liability. Other casualty lines are

experiencing modest rate increase, while some lines such as workers’ compensation were experiencing softer

market conditions. It is too early to tell what the impact on pricing conditions will be, but it is likely to change

depending on the line of business and geography.

While we are unable to predict the full impact the pandemic will have on the insurance industry as it continues to

have a negative impact on the global economy, we are well positioned to continue to service our clients. Our

capital position remains a source of strength, with high quality invested assets, significant liquidity and a low

operating expense ratio. Our diversified global platform with its broad mix of products, distribution and geography

is resilient.

The war in the Ukraine is ongoing and an evolving event. Economic and legal sanctions have been levied against

Russia, specific named individuals and entities connected to the Russian government, as well as businesses located

in the Russian Federation and/or owned by Russian nationals by numerous countries, including the United States.

32

The significant political and economic uncertainty surrounding the war and associated sanctions have impacted

economic and investment markets both within Russia and around the world. The Company has recorded $25

million of incurred underwriting losses related to the Ukraine and Russia conflict as of the nine months ended

September 30, 2022.

33

Financial Summary.

We monitor and evaluate our overall performance based upon financial results. The following table displays a

summary of the consolidated net income (loss), ratios and stockholder’s equity for the periods indicated: 

Three Months Ended

 Percentage 

Nine Months Ended

 Percentage 

September 30,

Increase/

September 30,

Increase/

(Dollars in millions)

2022

2021

(Decrease)

2022

2021

(Decrease)

Gross written premiums

$

2,585

$

2,524

2.4%

$

7,227

$

6,974

3.6%

Net written premiums

2,228

2,069

7.7%

6,019

5,763

4.4%

REVENUES:

Premiums earned

$

2,104

$

1,851

13.6%

$

5,887

$

5,315

10.8%

Net investment income

124

197

-36.8%

457

593

-22.9%

Net gains (losses) on investments

(237)

(51)

NM

(842)

267

NM

Other income (expense)

7

10

-30.0%

(2)

12

-116.7%

Total revenues

1,998

2,007

-0.5%

5,500

6,187

-11.1%

CLAIMS AND EXPENSES:

Incurred losses and loss adjustment expenses

2,094

1,653

26.7%

4,624

4,103

12.7%

Commission, brokerage, taxes and fees

423

389

8.7%

1,216

1,126

8.0%

Other underwriting expenses

127

110

16.3%

365

329

11.0%

Corporate expense

5

11

-54.6%

17

23

-28.1%

Interest, fee and bond issue cost amortization expense

26

16

62.1%

74

47

58.1%

Total claims and expenses

2,675

2,178

22.8%

6,296

5,627

11.9%

INCOME (LOSS) BEFORE TAXES

(677)

(171)

NM

(796)

560

-242.1%

Income tax expense (benefit)

(135)

(28)

NM

(170)

118

-244.1%

NET INCOME (LOSS) 

$

(542)

$

(143)

NM

$

(626)

$

442

-241.6%

RATIOS:

Point

Change

Point

Change

Loss ratio

99.6%

89.3%

10.3

78.6%

77.2%

1.4

Commission and brokerage ratio

20.1%

21.0%

(0.9)

20.7%

21.2%

(0.5)

Other underwriting expense ratio

6.1%

5.9%

0.2

6.2%

6.2%

-

Combined ratio

125.7%

116.2%

9.5

105.4%

104.6%

0.8

At

At

 Percentage 

September 30,

December 31,

Increase/

(Dollars in millions)

2022

2021

(Decrease)

Balance sheet data:

Total investments and cash

$

18,946

$

19,719

-3.9%

Total assets

27,656

27,695

-0.1%

Loss and loss adjustment expense reserves

14,849

13,121

13.2%

Total debt

3,084

3,089

-0.2%

Total liabilities

22,322

20,657

8.1%

Stockholder's equity

5,334

7,038

-24.2%

(Some amounts may not reconcile due to rounding)

(NM, not meaningful)

34

Revenues.

Premiums. Gross written premiums increased by 2.4% to $2.6 billion for the three months ended September 30,

2022, compared to $2.5 billion for the three months ended September 30, 2021, reflecting a $74 million, or 8.9%,

increase in our insurance business and a $13 million, or 0.7%, decrease in our reinsurance business. The increase in

insurance premiums reflects growth across most lines of business driven by positive rate and exposure increases,

new business, and strong renewal retention. The decrease in reinsurance premiums was mainly due to a decline in

property pro rata business, partially offset by an increase in casualty pro rata business. Gross written premiums

increased by 3.6% to $7.2 billion for the nine months ended September 30, 2022, compared to $7.0 billion for the

nine months ended September 30, 2021, reflecting a $351 million, or 14.5%, increase in our insurance business

and a $98 million, or 2.2%, decrease in our reinsurance business. The increase in insurance premiums reflects

growth across most lines of business driven by positive rate and exposure increases, new business, and strong

renewal retention. The decrease in reinsurance premiums was mainly due to a decline property pro rata business,

partially offset by an increase in casualty pro rata business.

Net written premiums increased by 7.7% to $2.2 billion for the three months ended September 30, 2022,

compared to $2.1 billion for the three months ended September 30, 2021 and increased by 4.4% to $6.0 billion for

the nine months ended September 30, 2022, compared to $5.8 billion for the nine months ended September 30,

2021. The higher percentage increases in net written premiums compared to gross written premiums were

primarily due to a reduction in business ceded to the segregated accounts of Mt. Logan Re during the three and

nine months ended September 30, 2022 compared to the three and nine months ended September 30, 2021.

Premiums earned increased by 13.6% to $2.1 billion for the three months ended September 30, 2022, compared to

$1.9 billion for the three months ended September 30, 2021 and increased by 10.8% to $5.9 billion for the nine

months ended September 30, 2022, compared to $5.3 billion for the nine months ended September 30, 2021. The

change in premiums earned relative to net written premiums is primarily the result of timing; premiums are

earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage

period. Accordingly, the significant increases in gross written premiums from pro rata business during the latter

half of 2021 contributed to the current quarter percentage increase in net earned premiums.

Other Income (Expense). We recorded other income of $7 million and $10 million for the three months ended

September 30, 2022 and 2021, respectively. We recorded other expense of $2 million and other income of $12

million for the nine months ended September 30, 2022 and 2021, respectively. The change was primarily the result

of fluctuations in foreign currency exchange rates. 

Net Investment Income. Refer to Consolidated Investments Results Section below.

Net Gains (Losses) on Investments. Refer to Consolidated Investments Results Section below. 

35

Claims and Expenses.

Incurred Losses and Loss Adjustment Expenses. The following table presents our incurred losses and loss

adjustment expenses (“LAE”) for the periods indicated. 

Three Months Ended September 30,

Current

Ratio %/

Prior

Ratio %/

Total

Ratio %/

(Dollars in millions)

Year

Pt Change

Years

Pt Change

Incurred

Pt Change

2022

Attritional

$

1,260

59.9%

$

7

0.3%

$

1,267

60.2%

Catastrophes

826

39.2%

1

0.1%

827

39.3%

Total

$

2,086

99.1%

$

8

0.4%

$

2,094

99.6%

2021

Attritional

$

1,112

60.0%

$

-

0.0%

$

1,112

60.0%

Catastrophes

544

29.4%

(3)

-0.1%

541

29.3%

Total

$

1,656

89.4%

$

(3)

-0.1%

$

1,653

89.3%

Variance 2022/2021

Attritional

$

148

(0.1)

pts

$

7

0.3

pts

$

155

0.2

pts

Catastrophes

282

9.8

pts

4

0.2

pts

286

10.0

pts

Total

$

430

9.7

pts

$

11

0.5

pts

$

441

10.3

pts

Nine Months Ended September 30,

Current

Ratio %/

Prior

Ratio %/

Total

Ratio %/

(Dollars in millions)

Year

Pt Change

Years

Pt Change

Incurred

Pt Change

2022

Attritional

$

3,636

61.8%

$

7

0.1%

$

3,643

61.9%

Catastrophes

971

16.5%

10

0.2%

981

16.7%

Total

$

4,607

78.3%

$

17

0.3%

$

4,624

78.6%

2021

Attritional

$

3,267

61.5%

$

(2)

0.0%

$

3,265

61.5%

Catastrophes

840

15.8%

(2)

0.0%

837

15.8%

Total

$

4,106

77.3%

$

(4)

0.0%

$

4,103

77.2%

Variance 2022/2021

Attritional

$

369

0.3

pts

$

9

0.1

pts

$

378

0.5

pts

Catastrophes

131

0.7

pts

12

0.2

pts

144

0.9

pts

Total

$

500

1.0

pts

$

21

0.3

pts

$

522

1.4

pts

(Some amounts may not reconcile due to rounding.)

Incurred losses and LAE increased by 26.7% to $2.1 billion for the three months ended September 30, 2022

compared to $1.7 billion for the three months ended September 30, 2021, primarily due to an increase of $148

million in current year attritional losses and an increase of $282 million in current year catastrophe losses. The

increase in current year attritional losses was mainly due to the impact of the increase in premiums earned. The

current year catastrophe losses of $826 million for the three months ended September 30, 2022 mainly related to

Hurricane Ian ($769 million), Hurricane Fiona ($25 million), Typhoon Nanmadol ($20 million), and the 2022

Western Europe hailstorms ($9 million). The current year catastrophe losses of $544 million for the three months

ended September 30, 2021 related to Hurricane Ida ($431 million) and the Europeans floods ($113 million). 

Incurred losses and LAE increased by 12.7% to $4.6 billion for the nine months ended September 30, 2022

compared to $4.1 billion for the nine months ended September 30, 2021, primarily due to an increase of $369

million in current year attritional losses and an increase of $131 million in current year catastrophe losses. The

increase in current year attritional losses was mainly due to the impact of the increase in premiums earned and

$25 million of attritional losses incurred due to the Ukraine/Russia war. The current year catastrophe losses of

36

$971 million for the nine months ended September 30, 2022 related to Hurricane Ian ($769 million), the 2022

Australia floods ($74 million), the 2022 South Africa flood ($38 million), Hurricane Fiona ($25 million), Typhoon

Nanmadol ($20 million), the 2022 Canada derecho ($16 million), the 2022 2nd quarter U.S. storms ($12 million),

the 2022 We stern Europe hailstorms ($9 million) and the 2022 March U.S. storms ($8 million). The current year

catastrophe losses of $840 million for the nine months ended September 30, 2021 primarily related to Hurricane

Ida ($431 million), the Texas winter storms ($279 million) and the European floods ($113 million) with the rest of

the losses emanating from the 2021 Australia floods and Victoria Australia flooding. 

Commission, Brokerage, Taxes and Fees. Commission, brokerage, taxes and fees increased to $423 million for the

three months ended September 30, 2022 compared to $389 million for the three months ended September 30,

2021. Commission, brokerage, taxes and fees increased to $1.2 billion for the nine months ended September 30,

2022 compared to $1.1 billion for the nine months ended September 30, 2021. The increases were mainly due to

the impact of the increase in premiums earned and changes in the mix of business.

Other Underwriting Expenses. Other underwriting expense s increased to $127 million for the three months ended

September 30, 2022 compared to $110 million for the three months ended September 30, 2021. Other

underwriting expenses increased to $365 million for the nine months ended September 30, 2022 compared to

$329 million for the nine months ended September 30, 2021. The increases were mainly due to the impact of

increase in premiums earned and costs incurred to support the expansion of the insurance business. 

Corporate Expenses. Corporate expenses, which are general operating expenses that are not allocated to

segments, have decreased to $5 million from $11 million for the three months ended September 30, 2022 and

2021, respectively and decreased to $17 million from $23 million for the nine months ended September 30, 2022

and 2021, respectively. The variances are mainly due to changes in variable incentive compensation expenses.

Interest, Fees and Bond Issue Cost Amortization Expense. Interest, fees and other bond amortization expense was

$26 million and $16 million for the three months ended September 30, 2022 and 2021, respectively. Interest, fees

and other bond amortization expense was $74 million and $47 million for the nine months ended September 30,

2022 and 2021, respectively. The variances in expenses were primarily due to the issuance of $1.0 billion of senior

notes in October 2021. Interest expense was also impacted by the movements in the floating interest rate related

to the long-term subordinated notes, which is reset quarterly per the note agreement. The floating rate was 5.29%

as of September 30, 2022. 

Income Tax Expense (Benefit). We had income tax benefit of $135 million and $170 million for the three and nine

months ended September 30, 2022, respectively. We had an income tax benefit of $28 million and income tax

expense of $118 million for the three and nine months ended September 30, 2021, respectively. Income tax

expense is primarily a function of the geographic location of the Company’s pre-tax income and the statutory tax

rates in those jurisdictions. The effective tax rate (“ETR”) is primarily affected by tax -exempt investment income,

foreign tax credits and dividends. Variations in the ETR generally result from changes in the relative levels of pre-

tax income, including the impact of catastrophe losses, foreign exchange gains (losses) and net gains (losses) on

investments, among jurisdictions with different tax rates. 

On August 16, 2022, the Inflation Reduction Act of 2022 (“IRA”) was enacted. We have evaluated the tax provisions

of the IRA, the most significant of which are the corporate alternative minimum tax and the share repurchase

excise tax and do not expect the legislation to have a material impact on our results of operations. As the IRS issues

additional guidance, we will evaluate any impact to our consolidated financial statements.

Net Income (Loss).

Our net loss was $542 million and $143 million, for the three months ended September 30, 2022 and 2021

respectively. Our net loss was $626 million and net income was $442 million, for the nine months ended

September 30, 2022 and 2021 respectively. The changes were primarily driven by the financial component

fluctuations explained above. 

37

Ratios.

Our combined ratio increased by 9.5 points to 125.7% for the three months ended September 30, 2022, compared

to 116.2% for the three months ended September 30, 2021 and increased by 0.8 points to 105.4% for the nine

months ended September 30, 2022 compared to 104.6% for the nine months ended September 30, 2021. The loss

ratio component increased by 10.3 points for the three months ended September 30, 2022 over the same period

last year mainly due to an increase of $282 million in current year catastrophe losses. The loss ratio component

increased by 1.4 points for the nine months ended September 30, 2022 over the same period last year mainly due

to an increase of $131 million in current year catastrophe losses, and $25 million in current year attritional losses

due to the Ukraine Russia conflict incurred in 2022. The commission and brokerage ratio components decreased to

20.1% for the three months ended September 30, 2022 compared to 21.0% for the three months ended

September 30, 2021 and decreased to 20.7% for the nine months ended September 30, 2022 compared to 21.2%

for the nine months ended September 30, 2021. These changes were mainly due to changes in the mix of business.

The other underwriting expense ratios increased slightly to 6.1% from 5.9% for the three months ended

September 30, 2022 and 2021, respectively and remained the same at 6.2% for the nine months ended September

30, 2022 and 2021, respectively. 

Stockholder's Equity. 

Stockholder’s equity decreased by $1.7 billion to $5.3 billion at September 30, 2022 from $7.0 billion at December

31, 2021, principally as a result of $1.0 billion of net unrealized depreciation on investments, net of tax, $626

million of net loss and $41 million of net foreign currency translation adjustments, partially offset by $2 million of

net benefit plan obligation adjustments, net of tax. The movement in the unrealized depreciation on investments

was driven by the change in interest rates on the Company’s fixed maturity portfolio. 

Consolidated Investment Results 

Net Investment Income. 

Net investment income decreased to $124 million for the three months ended September 30, 2022 compared to

$197 million for the three months ended September 30, 2021. Net investment income decreased to $457 million

for the nine months ended September 30, 2022 compared to $593 million for the nine months ended September

30, 2021. The decreases were primarily the result of reductions in income from limited partnerships and other

alternative investments, partially offset by an increase in income from fixed maturity securities. The limited

partnership income primarily reflects changes in their reported net asset values. As such, until these asset values

are monetized and the resultant income is distributed, they are subject to future increases or decreases in the

asset value, and the results may be volatile.

38

The following table shows the components of net investment income for the periods indicated: 

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Fixed maturities

$

129

$

83

$

339

$

260

Equity securities 

7

4

15

10

Short-term investments and cash

4

-

4

-

Other invested assets

Limited partnerships

(25)

82

63

260

Dividends from preferred shares of affiliate

8

8

23

23

Other 

11

31

37

63

Gross investment income before adjustments

132

208

482

617

Funds held interest income (expense)

1

1

5

7

Interest income from Parent

3

2

7

4

Gross investment income

137

210

494

629

Investment expenses

13

13

37

36

Net investment income

$

124

$

197

$

457

$

593

(Some amounts may not reconcile due to rounding.)

The following table shows a comparison of various investment yields for the periods indicated.

Three Months Ended

Nine Months Ended

September 30,

September 30,

2022

2021

2022

2021

Annualized pre-tax yield on average cash and invested assets

2.5%

4.7%

3.1%

4.9%

Annualized after-tax yield on average cash and invested assets

2.0%

3.7%

2.5%

3.9%

39

Net Gains (Losses) on Investments.

The following table presents the composition of our net gains (losses) on investments for the periods indicated: 

Three Months Ended September 30,

Nine Months Ended September 30,

(Dollars in millions)

2022

2021

Variance

2022

2021

Variance

Realized gains (losses) from dispositions:

Fixed maturity securities available for sale

Gains

$

1

$

9

$

(8)

$

7

$

24

$

(17)

Losses

(46)

(6)

(40)

(67)

(13)

(54)

Total

(45)

3

(48)

(60)

11

(71)

Equity securities, fair value

Gains

59

3

56

67

18

49

Losses

(2)

(3)

1

(48)

(11)

(37)

Total

57

-

57

19

6

13

Other invested assets

Gains

7

2

5

15

8

7

Losses

(1)

-

(1)

(4)

(2)

(2)

Total

6

2

4

11

6

5

Total net realized gains (losses) from dispositions

Gains

68

14

54

90

50

40

Losses

(49)

(10)

(39)

(119)

(27)

(92)

Total

20

4

16

(29)

23

(52)

Allowances for credit losses:

(12)

(7)

(5)

(12)

(30)

18

Gains (losses) from fair value adjustments:

Equity securities, fair value

(134)

(4)

(130)

(451)

137

(588)

Other invested assets, fair value

(111)

(44)

(67)

(350)

137

(487)

Total

(245)

(48)

(197)

(801)

274

(1,075)

Total net gains (losses) on investments

$

(237)

$

(51)

$

(186)

$

(842)

$

267

$

(1,109)

(Some amounts may not reconcile due to rounding.)

Net gains (losses) on investments during the three months ended September 30, 2022 primarily relate to net losses

from fair value adjustments on equity securities of $134 million as a result of equity market declines during the

third quarter of 2022, net losses of $111 million from fair value adjustments on other invested assets, $20 million

of net realized gains from disposition of investments and $12 million of credit allowances on fixed maturity

securities.

Net gains (losses) on investments during the nine months ended September 30, 2022 primarily relate to net losses

from fair value adjustments on equity securities of $451 million as a result of equity market declines during the first

nine months of 2022, net losses of $350 million from fair value adjustments on other invested assets, $29 million of

net realized losses from disposition of investments investments and $12 million of credit allowances on fixed

maturity securities.

Segment Results.

The Company manages its reinsurance and insurance operations as autonomous units and key strategic decisions

are based on the aggregate operating results and projections for these segments of business. 

The Reinsurance operation writes risks on a worldwide basis in 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

40

Insurance operation writes property and casualty insurance directly and through brokers, surplus lines brokers and

general agents within the United States. 

These segments are managed independently, but conform with corporate guidelines with respect to pricing, risk

management, control of aggregate catastrophe exposures, capital, investments and support operations. 

Management generally monitors and evaluates the financial performance of these operating segments based upon

their underwriting results. 

Underwriting results include earned premium less losses and LAE incurred, commission and brokerage expenses

and other underwriting expenses. 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. 

The Company does not maintain separate balance sheet data for its operating segments. Accordingly, the

Company does not review and evaluate the financial results of its operating segments based upon balance sheet

data. 

Our loss and LAE reserves are management’s best estimate of our ultimate liability for unpaid claims. We re-

evaluate our estimates on an ongoing basis, including all prior period reserves, taking into consideration all

available information and, in particular, recently reported loss claim experience and trends related to prior

periods. Such re-evaluations are recorded in incurred losses in the period in which the re-evaluation is made. 

The following discusses the underwriting results for each of our segments for the periods indicated: 

Reinsurance.

The following table presents the underwriting results and ratios for the Reinsurance segment for the periods

indicated. 

Three Months Ended September 30,

Nine Months Ended September 30,

(Dollars in millions)

2022

2021

Variance

% Change

2022

2021

Variance

% Change

Gross written premiums

$

1,681

$

1,693

$

(12)

-0.7%

$

4,454

$

4,552

$

(98)

-2.2%

Net written premiums

1,506

1,461

45

3.0%

3,936

3,961

(25)

-0.6%

Premiums earned

$

1,398

$

1,280

$

118

9.2%

$

3,902

$

3,690

$

212

5.8%

Incurred losses and LAE

1,531

1,208

323

26.8%

3,227

2,917

310

10.6%

Commission and brokerage

337

320

17

5.6%

985

935

50

5.3%

Other underwriting expenses

33

32

1

3.8%

97

101

(4)

-4.6%

Underwriting gain (loss)

$

(504)

$

(279)

$

(225)

79.9%

$

(406)

$

(264)

$

(142)

53.6%

Point Chg

Point Chg

Loss ratio

109.5%

94.3%

15.2

82.7%

79.1%

3.6

Commission and brokerage ratio

24.1%

25.0%

(0.9)

25.2%

25.3%

(0.1)

Other underwriting ratio

2.4%

2.5%

(0.1)

2.5%

2.7%

(0.2)

Combined ratio

136.0%

121.8%

14.2

110.4%

107.2%

3.4

(Some amounts may not reconcile due to rounding.)

(NM, not meaningful)

Premiums.

Gross written premiums decreased by 0.7% to $1.7 billion for the three months ended September 30,

2022 primarily due to a decline in property pro rata business, partially offset by an increase in casualty pro rata

business. Net written premiums increased by 3.0% to $1.5 billion for the three months ended September 30, 2022.

The higher percentage increases in net written premiums compared to gross written premiums were primarily due

to a reduction in business ceded to the segregated accounts of Mt. Logan Re during the three and nine months

ended September 30, 2022 compared to the three and nine months ended September 30, 2021. Premiums earned

increased by 9.2% to $1.4 billion for the three months ended September 30, 2022 compared to $1.3 billion for the

three months ended September 30, 2021. The change in premiums earned relative to net written premiums is the

result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at

41

the initiation of the coverage period. Accordingly, the increases in gross written premiums from pro rata business

during the latter half of 2021 contributed to the current quarter percentage increase in net earned premiums.

Gross written premiums decreased by 2.2% to $4.5 billion for the nine months ended September 30, 2022 from

$4.6 billion for the nine months ended September 30, 2021 primarily due to a decline in property pro rata

business, partially offset by an increase in casualty pro rata business . Net written premiums decreased by 0.6% to

$3.9 billion for the nine months ended September 30, 2022 compared to $4.0 billion for the nine months ended

September 30, 2021, which is consistent with the change in gross written premiums. Premiums earned increased

5.8% to $3.9 billion for the nine months ended September 30, 2022 compared to $3.7 billion for the nine months

ended September 30, 2021. The change in premiums earned relative to net written premiums is the result of

timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the

initiation of the coverage period. Accordingly, the increases in gross written premiums from pro rata business

during the latter half of 2021 contributed to the current quarter percentage increase in net earned premiums.

Incurred Losses and LAE.

The following tables present the incurred losses and LAE for the Reinsurance segment for

the periods indicated.

Three Months Ended September 30,

Current

Ratio %/

Prior

Ratio %/

Total

Ratio %/

(Dollars in millions)

Year

Pt Change

Years

Pt Change

Incurred

Pt Change

2022

Attritional

$

800

57.2%

$

7

0.5%

$

807

57.7%

Catastrophes

722

51.7%

2

0.1%

724

51.8%

Total segment

$

1,522

108.9%

$

9

0.6%

$

1,531

109.5%

2021

Attritional

$

744

58.1%

$

-

0.0%

$

744

58.1%

Catastrophes

466

36.4%

(2)

-0.1%

464

36.2%

Total segment

$

1,209

94.5%

$

(2)

-0.1%

$

1,208

94.3%

Variance 2022/2021

Attritional

$

56

(0.9)

pts

$

7

0.5

pts

$

63

(0.4)

pts

Catastrophes

256

15.3

pts

4

0.2

pts

260

15.6

pts

Total segment

$

312

14.4

pts

$

11

0.7

pts

$

323

15.2

pts

Nine Months Ended September 30,

Current

Ratio %/

Prior

Ratio %/

Total

Ratio %/

(Dollars in millions)

Year

Pt Change

Years

Pt Change

Incurred

Pt Change

2022

Attritional

$

2,350

60.2%

$

8

0.2%

$

2,358

60.4%

Catastrophes

857

22.0%

11

0.3%

868

22.3%

Total segment

$

3,207

82.2%

$

19

0.5%

$

3,227

82.7%

2021

Attritional

$

2,216

60.1%

$

1

0.0%

$

2,217

60.1%

Catastrophes

704

19.1%

(3)

-0.1%

701

19.0%

Total segment

$

2,920

79.1%

$

(3)

-0.1%

$

2,917

79.1%

Variance 2022/2021

Attritional

$

134

0.1

pts

$

7

0.2

pts

$

141

0.3

pts

Catastrophes

153

2.9

pts

14

0.4

pts

167

3.3

pts

Total segment

$

287

3.0

pts

$

21

0.6

pts

$

310

3.5

pts

(Some amounts may not reconcile due to rounding.)

Incurred losses increased by 26.8% to $1.5 billion for the three months ended September 30, 2022, compared to

$1.2 billion for the three months ended September 30, 2021. The increase was primarily due to an increase of $56

42

million in current year attritional losses and an increase of $256 million in current year catastrophe losses. The

increase in current year attritional losses was mainly related to the impact of the increase in premiums earned. The

current year catastrophe losses of $722 million for the three months ended September 30, 2022 related primarily

to Hurricane Ian ($670 million), Typhoon Nanmadol ($20 million), Hurricane Fiona ($20 million) and the Western

Europe hailstorms ($9 million). The $466 million of current year catastrophe losses for the three months ended

September 30, 2021 related to Hurricane Ida ($352 million) and the European floods ($113 million). 

Incurred losses increased by 10.6% to $3.2 billion for the nine months ended September 30, 2022, compared to

$2.9 billion for the nine months ended September 30, 2021. The increase was primarily due to an increase of $153

million in current year catastrophe losses and an increase of $134 million in current year attritional losses. The

increase in current year attritional losses was mainly related to the impact of the increase in premiums earned and

$25 million of attritional losses incurred due to the Ukraine/Russia war. The current year catastrophe losses of

$857 million for the nine months ended September 30, 2022 related primarily to Hurricane Ian ($670 million), the

2022 Australia floods ($74 million), the 2022 South Africa flood ($38 million), Hurricane Fiona ($20 million),

Typhoon Nanmadol ($20 million), the 2022 Canada derecho ($16 million), the 2022 Western Europe hailstorms ($9

million), the 2022 2nd quarter U.S. storms ($7 million) and the 2022 March U.S. storms ($4 million). The $704

million of current year catastrophe losses for the nine months ended September 30, 2021 primarily related to

Hurricane Ida ($352 million), the Texas winter storms ($221 million) and the European floods ($113 million) with

the rest of the losses emanating from the 2021 Australia floods and Victoria Australia flooding.

Segment Expenses. Commission and brokerage expense increased by 5.6% to $337 million for the three months

ended September 30, 2022 compared to $320 million for the three months ended September 30, 2021.

Commission and brokerage expense increased by 5.3% to $985 million for the nine months ended September 30,

2022 compared to $935 million for the nine months ended September 30, 2021. The increases were mainly due to

changes in the mix of business. 

Segment other underwriting expenses increased slightly to $33 million for the three months ended September 30,

2022 from $32 million for the three months ended September 30, 2021. Segment other underwriting expenses

decreased to $97 million for the nine months ended September 30, 2022 from $101 million for the nine months

ended September 30, 2021. The decreases were mainly due to the impact of decreases in premiums earned. 

Insurance.

The following table presents the underwriting results and ratios for the Insurance segment for the periods

indicated. 

Three Months Ended September 30,

Nine Months Ended September 30,

(Dollars in millions)

2022

2021

Variance

% Change

2022

2021

Variance

% Change

Gross written premiums

$

905

$

831

$

74

8.9%

$

2,773

$

2,422

$

351

14.5%

Net written premiums

722

608

114

18.8%

2,083

1,802

281

15.6%

Premiums earned

$

706

$

571

$

135

23.6%

$

1,985

$

1,625

$

360

22.1%

Incurred losses and LAE

564

445

119

26.6%

1,398

1,185

213

17.9%

Commission and brokerage

85

69

16

23.4%

231

190

41

21.6%

Other underwriting expenses

94

77

17

21.5%

269

228

41

17.9%

Underwriting gain (loss)

$

(37)

$

(21)

$

(16)

79.2%

$

87

$

22

$

65

NM

Point Chg

Point Chg

Loss ratio

79.9%

78.0%

1.9

70.4%

72.9%

(2.5)

Commission and brokerage ratio

12.1%

12.1%

-

11.7%

11.7%

-

Other underwriting ratio

13.3%

13.6%

(0.3)

13.5%

14.0%

(0.5)

Combined ratio

105.3%

103.7%

1.6

95.6%

98.7%

(3.1)

(Some amounts may not reconcile due to rounding.)

(NM, not meaningful)

43

Premiums.

Gross written premiums increased by 8.9% to $905 million for the three months ended September 30,

2022 compared to $831 million for the three months ended September 30, 2021. The increase in insurance

premiums reflects growth across most lines of business driven by positive rate and exposure increases, new

business, and strong renewal retention. Net written premiums increased by 18.8% to $722 million for the three

months ended September 30, 2022 compared to $608 million for the three months ended September 30, 2021.

The higher percentage of net written premiums compared to gross written premiums was mainly due to business

mix. Premiums earned increased 23.6% to $706 million for the three months ended September 30, 2022 compared

to $571 million for the three months ended September 30, 2021. The change in premiums earned is the result of

timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the

initiation of the coverage period. Accordingly, the significant increases in gross written premiums during the latter

half of 2021 contributed to the current quarter percentage increase in net earned premiums.

Gross written premiums increased by 14.5% to $2.8 billion for the nine months ended September 30, 2022

compared to $2.4 billion for the nine months ended September 30, 2021. The increase in insurance premiums

reflects growth across most lines of business driven by positive rate and exposure increases, new business, and

strong renewal retention. Net written premiums increased by 15.6% to $2.1 billion for the nine months ended

September 30, 2022 compared to $1.8 billion for the nine months ended September 30, 2021, which is consistent

with the change in gross written premiums. Premiums earned increased 22.1% to $2.0 billion for the nine months

ended September 30, 2022 compared to $1.6 billion for the nine months ended September 30, 2021. The change

in premiums earned is the result of timing; premiums are earned ratably over the coverage period whereas written

premiums are recorded at the initiation of the coverage period. Accordingly, the significant increases in gross

written premiums during the latter half of 2021 contributed to the current quarter percentage increase in net

earned premiums.

Incurred Losses and LAE.

The following tables present the incurred losses and LAE for the Insurance segment for

the periods indicated. 

Three Months Ended September 30,

Current

Ratio %/

Prior

Ratio %/

Total

Ratio %/

(Dollars in millions)

Year

Pt Change

Years

Pt Change

Incurred

Pt Change

2022

Attritional

$

461

65.3%

$

-

0.0%

$

461

65.3%

Catastrophes

104

14.7%

-

-0.1%

104

14.6%

Total segment

$

565

80.0%

$

-

-0.1%

$

564

79.9%

2021

Attritional

$

368

64.4%

$

-

0.0%

$

368

64.4%

Catastrophes

78

13.7%

(1)

-0.1%

78

13.6%

Total segment

$

446

78.1%

$

(1)

-0.1%

$

445

78.0%

Variance 2022/2021

Attritional

$

93

0.9

pts

$

-

-

pts

$

93

0.9

pts

Catastrophes

26

1.0

pts

1

-

pts

26

1.0

pts

Total segment

$

119

1.9

pts

$

1

-

pts

$

119

1.9

pts

44

Nine Months Ended September 30,

Current

Ratio %/

Prior

Ratio %/

Total

Ratio %/

(Dollars in millions)

Year

Pt Change

Years

Pt Change

Incurred

Pt Change

2022

Attritional

$

1,285

64.8%

$

-

0.0%

$

1,285

64.8%

Catastrophes

114

5.7%

(1)

-0.1%

113

5.6%

Total segment

$

1,399

70.5%

$

(1)

-0.1%

$

1,398

70.4%

2021

Attritional

$

1,051

64.6%

$

(2)

-0.1%

$

1,049

64.5%

Catastrophes

136

8.4%

1

0.1%

137

8.4%

Total segment

$

1,186

73.0%

$

(1)

-0.1%

$

1,185

72.9%

Variance 2022/2021

Attritional

$

234

0.2

pts

$

2

0.1

pts

$

236

0.3

pts

Catastrophes

(22)

(2.7)

pts

(2)

(0.2)

pts

(24)

(2.8)

pts

Total segment

$

213

(2.5)

pts

$

-

(0.1)

pts

$

213

(2.5)

pts

(Some amounts may not reconcile due to rounding.)

Incurred losses and LAE increased by 26.6% to $564 million for the three months ended September 30, 2022

compared to $445 million for the three months ended September 30, 2021, mainly due to an increase of $93

million in current year attritional losses which is primarily related to the impact of the increase in premiums earned

and an increase of $26 million in current year catastrophe losses. The $104 million of current year catastrophe

losses for the three months ended September 30, 2022, related to Hurricane Ian ($99 million) and Hurricane Fiona

($5 million). The $78 million of current year catastrophe losses for the three months ended September 30, 2021,

related to Hurricane Ida. 

Incurred losses and LAE increased by 17.9% to $1.4 billion for the nine months ended September 30, 2022

compared to $1.2 billion for the nine months ended September 30, 2021, mainly due to an increase of $234 million

in current year attritional losses which is primarily related to the impact of the increase in premiums earned,

partially offset by a decrease of $22 million in current year catastrophe losses. The $114 million of current year

catastrophe losses for the nine months ended September 30, 2022, related to Hurricane Ian ($99 million),

Hurricane Fiona ($5 million), the 2022 March U.S. storms ($5 million) and the 2022 2nd quarter U.S. storms ($5

million). The $136 million of current year catastrophe losses for the nine months ended September 30, 2021,

related to Hurricane Ida ($78 million) and the Texas winter storms ($58 million).

Segment Expenses. Commission and brokerage increased by 23.4% to $85 million for the three months ended

September 30, 2022 compared to $69 million for the three months ended September 30, 2021. Commission and

brokerage increased by 21.6% to $231 million for the nine months ended September 30, 2022 compared to $190

million for the nine months ended September 30, 2021. These increases were mainly due to the impact of the

increase in premiums earned and changes in the mix of business. 

Segment other underwriting expenses increased to $94 million for the three months ended September 30, 2022

compared to $77 million for the three months ended September 30, 2021. Segment other underwriting expenses

increased to $269 million for the nine months ended September 30, 2022 compared to $228 million for the nine

months ended September 30, 2021. These increases were mainly due to the impact of the increases in premiums

earned and increased expenses related to the continued build out of the insurance business. 

Market Sensitive Instruments.

The SEC’s Financial Reporting Release #48 requires registrants to clarify and expand upon the existing financial

statement disclosure requirements for derivative financial instruments, derivative commodity instruments and

other financial instruments (collectively, “market sensitive instruments”). We do not generally enter into market

sensitive instruments for trading purposes. 

45

Our current investment strategy seeks to maximize after-tax income through a high quality, diversified, taxable

and tax -preferenced fixed maturity portfolio, while maintaining an adequate level of liquidity. Our mix of taxable

and tax-preferenced investments is adjusted periodically, consistent with our current and projected operating

results, market conditions and our tax position. The fixed maturity securities in the investment portfolio are

comprised of non-trading available for sale securities. Additionally, we have invested in equity securities. 

The overall investment strategy considers the scope of present and anticipated Company operations. In particular,

estimates of the financial impact resulting from non-investment asset and liability transactions, together with our

capital structure and other factors, are used to develop a net liability analysis. This analysis includes estimated

payout characteristics for which our investments provide liquidity. This analysis is considered in the development

of specific investment strategies for asset allocation, duration and credit quality. The change in overall market

sensitive risk exposure principally reflects the asset changes that took place during the period. 

Interest Rate Risk. Our $18.9 billion investment portfolio, at September 30, 2022, is principally comprised of fixed

maturity securities, which are generally subject to interest rate risk and some foreign currency exchange rate risk,

and some equity securities, which are subject to price fluctuations and some foreign exchange rate risk. The overall

economic impact of the foreign exchange risks on the investment portfolio is partially mitigated by changes in the

dollar value of foreign currency denominated liabilities and their associated income statement impact. 

Interest rate risk is the potential change in value of the fixed maturity securities portfolio, including short-term

investments, from a change in market interest rates. In a declining interest rate environment, it includes

prepayment risk on the $1.9 billion of mortgage-backed securities in the $12.1 billion fixed maturity portfolio.

Prepayment risk results from potential accelerated principal payments that shorten the average life and thus the

expected yield of the security. 

The table below displays the potential impact of fair value fluctuations and after-tax unrealized appreciation on

our fixed maturity portfolio (including $454 million of short-term investments) for the period indicated based on

upward and downward parallel and immediate 100 and 200 basis point shifts in interest rates. For legal entities

with a U.S. dollar functional currency, this modeling was performed on each security individually. To generate

appropriate price estimate on mortgage-backed securities, changes in prepayment expectations under different

interest rate environments were taken into account. For legal entities with non-U.S. dollar functional currency, the

effective duration of the involved portfolio of securities was used as a proxy for the fair value change under the

various interest rate change scenarios. 

Impact of Interest Rate Shift in Basis Points

At September 30, 2022

(Dollars in millions)

-200

-100

0

100

200

Total Fair Value

$

14,925

$

14,568

$

14,210

$

13,853

$

13,495

Fair Value Change from Base (%)

5.0%

2.5%

0.0%

-2.5%

-5.0%

Change in Unrealized Appreciation

After-tax from Base ($)

$

565

$

282

$

-

$

(282)

$

(565)

We had $14.8 billion and $13.1 billion of gross reserves for losses and LAE as of September 30, 2022 and December

31, 2021, respectively. These amounts are recorded at their nominal value, as opposed to present value, which

would reflect a discount adjustment to reflect the time value of money. Since losses are paid out over a period of

time, the present value of the reserves is less than the nominal value. As interest rates rise, the present value of

the reserves decreases and, conversely, as interest rates decline, the present value increases. These movements

are the opposite of the interest rate impacts on the fair value of investments. While the difference between

present value and nominal value is not reflected in our financial statements, our financial results will include

investment income over time from the investment portfolio until the claims are paid. Our loss and loss reserve

obligations have an expected duration that is reasonably consistent with our fixed income portfolio. 

46

Equity Risk. Equity risk is the potential change in fair value of the common stock, preferred stock and mutual fund

portfolios arising from changing prices. Our equity investments consist of a diversified portfolio of individual

securities. The primary objective of the equity portfolio is to obtain greater total return relative to our core bonds

over time through market appreciation and income. 

The table below displays the impact on fair value and after -tax change in fair value of a 10% and 20% change in

equity prices up and down for the periods indicated. 

Impact of Percentage Change in Equity Fair Value

At September 30, 2022

(Dollars in millions)

-20%

-10%

0%

10%

20%

Fair Value of the Equity Portfolio

$

1,007

$

1,132

$

1,258

$

1,384

$

1,510

After-tax Change in Fair Value

(199)

(99)

-

99

199

Foreign Currency Risk. Foreign currency risk is the potential change in value, income and cash flow arising from

adverse changes in foreign currency exchange rates. Each of our non-U.S. (“foreign”) operations maintains capital

in the currency of the country of its geographic location consistent with local regulatory guidelines. Each foreign

operation may conduct business in its local currency, as well as the currency of other countries in which it

operates. The primary foreign currency exposures for these foreign operations are the Singapore and Canadian

Dollars. We mitigate foreign exchange exposure by generally matching the currency and duration of our assets to

our corresponding operating liabilities. In accordance with FASB guidance, the impact on the fair value of available

for sale fixed maturities due to changes in foreign currency exchange rates, in relation to functional currency, is

reflected as part of other comprehensive income. Conversely, the impact of changes in foreign currency exchange

rates, in relation to functional currency, on other assets and liabilities is reflected through net income as a

component of other income (expense). In addition, we translate the assets, liabilities and income of non-U.S. dollar

functional currency legal entities to the U.S. dollar. This translation amount is reported as a component of other

comprehensive income. 

SAFE HARBOR DISCLOSURE

This report contains forward -looking statements within the meaning of the U.S. federal securities laws. We intend

these forward -looking statements to be covered by the safe harbor provisions for forward-looking statements in

the federal securities laws. In some cases, these statements can be identified by the use of forward-looking words

such as “may”, “will”, “should”, “could”, “anticipate”, “estimate”, “expect”, “plan”, “believe”, “predict”,

“potential” and “intend”. Forward-looking statements contained in this report include information regarding our

reserves for losses and LAE, the CARES Act, the impact of the TCJA, the adequacy of our provision for uncollectible

balances, estimates of our catastrophe exposure, the effects of catastrophic and pandemic events on our financial

statements and the ability of our subsidiaries to pay dividends. Forward-looking statements only reflect our

expectations and are not guarantees of performance. These statements involve risks, uncertainties and

assumptions. Actual events or results may differ materially from our expectations. Important factors that could

cause our actual events or results to be materially different from our expectations include those discussed under

the caption ITEM 1A, “Risk Factors” in the Company’s most recent 10-K filing. We undertake no obligation to

update or revise publicly any forward-looking statements, whether as a result of new information, future events or

otherwise. 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market Risk Instruments. 

See “Market Sensitive Instruments” in PART I – ITEM 2. 

47

ITEM 4. CONTROLS AND PROCEDURES

As of the end of the period covered by this report, our management carried out an evaluation, with the

participation of the Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure

controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the “Exchange

Act”)). Based on their evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our

disclosure controls and procedures are effective to ensure that information required to be disclosed by us in the

reports that we file or submit under the Exchange Act are recorded, processed, summarized and reported within

the time periods specified in the Securities and Exchange Commission’s rules and forms. Our management, with

the participation of the Chief Executive Officer and Chief Financial Officer, also conducted an evaluation of our

internal control over financial reporting to determine whether any changes occurred during the quarter covered by

this report that have materially affected, or are reasonably likely to materially affect, our internal control over

financial reporting. Based on that evaluation, there has been no such change during the quarter covered by this

report. 

PART II 

ITEM 1. LEGAL PROCEEDINGS

In the ordinary course of business, the Company is involved in lawsuits, arbitrations and other formal and informal

dispute resolution procedures, the outcomes of which will determine the Company’s rights and obligations under

insurance and reinsurance agreements. In some disputes, the Company seeks to enforce its rights under an

agreement or to collect funds owing to it. In other matters, the Company is resisting attempts by others to collect

funds or enforce alleged rights. These disputes arise from time to time and are ultimately resolved through both

informal and formal means, including negotiated resolution, arbitration and litigation. In all such matters, the

Company believes that its positions are legally and commercially reasonable. The Company considers the statuses

of these proceedings when determining its reserves for unpaid loss and loss adjustment expenses. 

Aside from litigation and arbitrations related to these insurance and reinsurance agreements, the Company is not a

party to any other material litigation or arbitration. 

ITEM 1A. RISK FACTORS

No material changes.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

48

ITEM 5. OTHER INFORMATION

None. 

ITEM 6. EXHIBITS

Exhibit Index:

Exhibit No.

Description

31.1

Section 302 Certification of Juan C. Andrade

31.2

Section 302 Certification of Mark Kociancic

32.1

Section 906 Certification of Juan C. Andrade and Mark Kociancic

101.INS

XBRL Instance Document

101.SCH

XBRL Taxonomy Extension Schema

101.CAL

XBRL Taxonomy Extension Calculation Linkbase

101.DEF

XBRL Taxonomy Extension Definition Linkbase

101.LAB

XBRL Taxonomy Extension Labels Linkbase

101.PRE

XBRL Taxonomy Extension Presentation Linkbase

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

49

Everest Reinsurance Holdings, Inc.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to

be signed on its behalf by the undersigned thereunto duly authorized.

Everest Reinsurance Holdings, Inc.

(Registrant)

/S/ MARK KOCIANCIC

Mark Kociancic

Executive Vice President and

Chief Financial Officer

(Duly Authorized Officer and Principal Financial Officer)

Dated: November 10, 2022

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Juan C. Andrade, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Everest Reinsurance Holdings, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to

state a material fact necessary to make the statements made, in light of the circumstances under which

such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report,

fairly present in all material respects the financial condition, results of operations and cash flows of the

registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure

controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control

over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and

have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures

to be designed under our supervision, to ensure that material information relating to the registrant,

including its consolidated subsidiaries, is made known to us by others within those entities,

particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial

reporting to be designed under our supervision, to provide reasonable assurance regarding the

reliability of financial reporting and the preparation of financial statements for external purposes in

accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in

this report our conclusions about the effectiveness of the disclosure controls and procedures, as of

the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that

occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the

case of an annual report) that has materially affected, or is reasonably likely to materially affect, the

registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of

internal control over financial reporting, to the registrant’s auditors and the audit committee of the

registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over

financial reporting which are reasonably likely to adversely affect the registrant’s ability to record,

process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a

significant role in the registrant’s internal control over financial reporting.

November 10, 2022

/S/ JUAN C. ANDRADE

Juan C. Andrade

Chairman, President and

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Mark Kociancic, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Everest Reinsurance Holdings, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to

state a material fact necessary to make the statements made, in light of the circumstances under which

such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report,

fairly present in all material respects the financial condition, results of operations and cash flows of the

registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure

controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control

over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and

have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures

to be designed under our supervision, to ensure that material information relating to the registrant,

including its consolidated subsidiaries, is made known to us by others within those entities,

particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial

reporting to be designed under our supervision, to provide reasonable assurance regarding the

reliability of financial reporting and the preparation of financial statements for external purposes in

accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in

this report our conclusions about the effectiveness of the disclosure controls and procedures, as of

the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that

occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the

case of an annual report) that has materially affected, or is reasonably likely to materially affect, the

registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of

internal control over financial reporting, to the registrant’s auditors and the audit committee of the

registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over

financial reporting which are reasonably likely to adversely affect the registrant’s ability to record,

process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a

significant role in the registrant’s internal control over financial reporting.

November 10, 2022

/S/ MARK KOCIANCIC

Mark Kociancic

Executive Vice President and

Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATIONS PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the quarter ended September 30, 2022 of Everest

Reinsurance Holdings, Inc., a corporation organized under the laws of Delaware (the “Company”), filed with the

Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certify, pursuant to

18 U.S.C. ss. 1350, as enacted by section 906 of the Sarbanes-Oxley Act of 2002, that:

1.

The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of

1934, and

2.

The information contained in the Report fairly presents, in all material respects, the financial condition and

results of operations of the Company.

November 10, 2022

/S/ JUAN C. ANDRADE

Juan C. Andrade

Chairman, President and

Chief Executive Officer

/S/ MARK KOCIANCIC

Mark Kociancic

Executive Vice President and

Chief Financial Officer

XML

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Nov. 01, 2022
Document And Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Fiscal Year Focus	2022
Document Transition Report	false
Entity File Number	1-14527
Entity Registrant Name	EVEREST REINSURANCE HOLDINGS, INC.
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	22-3263609
Entity Address Address Line 1	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
Entity Common Stock, Shares Outstanding		1,000
Amendment Flag	false
Entity Central Index Key	0000914748
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
ASSETS:
Fixed maturities- available for sale, at fair value (amortized cost: 2022, $13,207; 2021, $12,733, allowances for credit losses: 2022, ($30); 2021, ($27))	$ 12,070	$ 12,860
Fixed maturities - held to maturity, at amortized cost, net of credit allowances (fair value: 2022, $789, credit allowances: 2022, ($9))	809
Equity securities, at fair value	1,258	1,758
Short-term investments (cost: 2022, $454; 2021, $696)	454	696
Other invested assets	1,797	1,675
Other invested assets, at fair value	1,680	2,031
Cash	878	699
Total investments and cash	18,946	19,719
Notes Receivable - affiliated	715	500
Accrued investment income	139	90
Premiums receivable	1,763	1,720
Reinsurance recoverables - unaffiliated	1,786	1,569
Reinsurance recoverables - affiliated	2,017	2,299
Funds held by reinsureds	291	299
Deferred acquisition costs	473	472
Prepaid reinsurance premiums	458	431
Income tax asset, net	379
Other assets	689	596
TOTAL ASSETS	27,656	27,695
LIABILITIES:
Reserve for losses and loss adjustment expenses	14,849	13,121
Unearned premium reserve	3,145	2,993
Funds held under reinsurance treaties	47	48
Other net payable to reinsurers	432	392
Losses in course of payment	141	273
Income tax liability, net		246
Senior notes	2,347	2,346
Long term notes	218	224
Borrowings from FHLB	519	519
Accrued interest on debt and borrowings	39	17
Unsettled securities payable	109	15
Other liabilities	476	463
Total liabilities	22,322	20,657
Commitments and Contingencies (Note 6)
STOCKHOLDER'S EQUITY:
Common stock, par value: $0.01; 3,000 shares authorized; 1,000 shares issued and outstanding (2022 and 2021)
Additional paid-in capital	1,102	1,102
Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) of ($262) at 2022 and $24 at 2021	(987)	91
Retained earnings	5,219	5,845
Total stockholder's equity	5,334	7,038
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$ 27,656	$ 27,695

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Fixed maturities - available for sale, at fair value, amortized cost	$ 13,207	$ 12,733
Fixed maturities - available for sale, at fair value, allowance for credit loss	30	27
Fixed maturities - held to maturity, at amortized cost, net of credit allowances, fair value	789
Fixed maturities - held to maturity, at amortized cost, credit allowances	9
Short-term investments, cost	$ 454	$ 696
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	3,000	3,000
Common stock, shares issued	1,000	1,000
Common stock, shares outstanding	1,000	1,000
Accumulated other comprehensive income (loss), deferred income tax expense (benefit)	$ (262)	$ 24

XML

Consolidated Statements Of Operations And Comprehensive Income (Loss) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
REVENUES:
Premiums earned	$ 2,104	$ 1,851	$ 5,887	$ 5,315
Net investment income	124	197	457	593
Net gains (losses) on investments:
Credit allowances on fixed maturity securities	(12)	(7)	(12)	(30)
Gains (losses) from fair value adjustments	(245)	(48)	(801)	274
Net realized gains (losses) from dispositions	20	4	(29)	23
Total net gains (losses) on investments	(237)	(51)	(842)	267
Other income (expense)	7	10	(2)	12
Total revenues	1,998	2,007	5,500	6,187
CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses	2,094	1,653	4,624	4,103
Commission, brokerage, taxes and fees	423	389	1,216	1,126
Other underwriting expenses	127	110	365	329
Corporate expenses	5	11	17	23
Interest, fee and bond issue cost amortization expense	26	16	74	47
Total claims and expenses	2,675	2,178	6,296	5,627
INCOME (LOSS) BEFORE TAXES	(677)	(171)	(796)	560
Income tax expense (benefit)	(135)	(28)	(170)	118
NET INCOME (LOSS)	(542)	(143)	(626)	442
Other comprehensive income (loss), net of tax :
Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period	(282)	(43)	(1,087)	(110)
Less: reclassification adjustment for realized losses (gains) included in net income (loss)	40	2	48	10
Total URA(D) on securities arising during the period	(242)	(41)	(1,039)	(100)
Foreign currency translation adjustments	(29)	(21)	(41)	(5)
Reclassification adjustment for amortization of net (gain) loss included in net income (loss)		2	2	6
Total benefit plan net gain (loss) for the period		2	2	6
Total other comprehensive income (loss), net of tax	(271)	(61)	(1,078)	(99)
COMPREHENSIVE INCOME (LOSS)	$ (813)	$ (204)	$ (1,704)	$ 343

XML

Consolidated Statements Of Changes In Stockholder's Equity - USD ($) $ in Millions	Total	Common Stock [Member]	Additional Paid In Capital [Member]	Accumulated Other Comprehensive Income (Loss), Net Of Deferred Income Taxes [Member]	Retained Earnings [Member]
Beginning balance at Dec. 31, 2020			$ 1,101	$ 268	$ 5,045
Beginning balance, shares at Dec. 31, 2020		1,000
Share-based compensation plans
Net increase (decrease) during the period	$ (99)			(99)
Net income (loss)	442				442
Ending balance at Sep. 30, 2021	6,758		1,101	169	5,487
Ending balance, shares at Sep. 30, 2021		1,000
Beginning balance at Jun. 30, 2021			1,101	230	5,630
Beginning balance, shares at Jun. 30, 2021		1,000
Share-based compensation plans
Net increase (decrease) during the period	(61)			(61)
Net income (loss)	(143)				(143)
Ending balance at Sep. 30, 2021	6,758		1,101	169	5,487
Ending balance, shares at Sep. 30, 2021		1,000
Beginning balance at Dec. 31, 2021	$ 7,038		1,102	91	5,845
Beginning balance, shares at Dec. 31, 2021	1,000	1,000
Share-based compensation plans
Net increase (decrease) during the period	$ (1,078)			(1,078)
Net income (loss)	(626)				(626)
Ending balance at Sep. 30, 2022	$ 5,334		1,102	(987)	5,219
Ending balance, shares at Sep. 30, 2022	1,000	1,000
Beginning balance at Jun. 30, 2022			1,102	(716)	5,760
Beginning balance, shares at Jun. 30, 2022		1,000
Share-based compensation plans
Net increase (decrease) during the period	$ (271)			(271)
Net income (loss)	(542)				(542)
Ending balance at Sep. 30, 2022	$ 5,334		$ 1,102	$ (987)	$ 5,219
Ending balance, shares at Sep. 30, 2022	1,000	1,000

XML

Consolidated Statements Of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (626)	$ 442
Adjustments to reconcile net income to net cash provided by operating activities:
Decrease (increase) in premiums receivable	(50)	(261)
Decrease (increase) in funds held by reinsureds, net	7	(26)
Decrease (increase) in reinsurance recoverables	40	172
Decrease (increase) in income taxes	(341)	85
Decrease (increase) in prepaid reinsurance premiums	(30)	(81)
Increase (decrease) in reserve for losses and loss adjustment expenses	1,791	1,657
Increase (decrease) in unearned premiums	159	530
Increase (decrease) in other net payable to reinsurers	45	151
Increase (decrease) in losses in course of payment	(131)	(11)
Change in equity adjustments in limited partnerships	(94)	(311)
Distribution of limited partnership income	72	65
Change in other assets and liabilities, net	(62)	(87)
Non-cash compensation expense	28	28
Amortization of bond premium (accrual of bond discount)	21	23
Net (gains) losses on investments	842	(267)
Net cash provided by (used in) operating activities	1,671	2,106
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from fixed maturities matured/called/repaid - available for sale	1,124	1,640
Proceeds from fixed maturities sold - available for sale	812	394
Proceeds from fixed maturities matured/called/repaid - held to maturity	18
Proceeds from equity securities sold - at fair value	1,016	450
Proceeds from distributions and sales of other invested assets	126	135
Cost of fixed maturities acquired - available for sale	(3,358)	(3,485)
Cost of fixed maturities acquired - held to maturity	(105)
Cost of equity securities acquired- at fair value	(949)	(507)
Cost of other invested assets acquired	(224)	(396)
Net change in short-term investments	243	171
Net change in unsettled securities transactions	79	(194)
Proceeds from repayment (cost of issuance) of note receivable - affiliated	(215)	(200)
Net cash provided by (used in) investing activities	(1,433)	(1,992)
CASH FLOWS FROM FINANCING ACTIVITIES:
Tax benefit from share-based compensation, net of expense	(28)	(27)
Cost of debt repurchase	(6)
Net cash provided by (used in) financing activities	(34)	(27)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(25)	(12)
Net increase (decrease) in cash	179	75
Cash, beginning of period	699	379
Cash, end of period	878	453
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid (recovered)	170	33
Interest paid	51	33
NON-CASH TRANSACTIONS
Reclassification of specific investments from fixed maturity securities, available for sale at fair value to fixed maturity securities, held to maturity at amortized cost net of credit allowances	$ 722

XML

General

9 Months Ended

Sep. 30, 2022

General [Abstract]

General

1. GENERAL

Everest Reinsurance Holdings, Inc. (“Holdings”), a Delaware company and direct subsidiary of Everest Underwriting

Group (Ireland) Limited (“Holdings Ireland”), which is a direct subsidiary of Everest Re 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 and its subsidiaries, a subsidiary of Holdings (unless the context otherwise requires).

XML

Basis Of Presentation

9 Months Ended

Sep. 30, 2022

Basis Of Presentation [Abstract]

Basis Of Presentation

2. BASIS OF PRESENTATION

The unaudited consolidated financial statements of the Company as of September 30, 2022 and December 31,

2021 and for the three and nine months ended September 30, 2022 and 2021 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, 2021 consolidated

balance sheet data was derived from audited financial statements but does not include all disclosures required by

GAAP. The results for the three and nine months ended September 30, 2022 and 2021 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, 2021, 2020 and 2019,

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. 

Certain reclassifications and format changes have been made to prior years’ amounts to conform to the 2022

presentation. 

Application of Recently Issued Accounting Standard Changes. 

The Company did not adopt any new accounting standards that had a material impact during the three and nine

months ended September 30, 2022. The Company assessed the adoption impacts of recently issued accounting

standards by the Financial Accounting Standards Board on the Company’s consolidated financial statements as well

as material updates to previous assessments, if any, from the Company’s Annual Report on Form 10-K for the year

ended December 31, 2021. There were no accounting standards issued in the nine months ended September 30,

2022, that are expected to have a material impact to Holdings.

Any issued guidance and pronouncements, other than those directly referenced above, are deemed by the

Company to be either not applicable or immaterial to its financial statements.

XML

Investments

9 Months Ended

Sep. 30, 2022

Investments [Abstract]

Investments

3. INVESTMENTS

The following tables show amortized cost, allowance for credit losses, gross unrealized appreciation, gross

unrealized depreciation and fair value of available for sale, fixed maturity securities available for sale as of the

dates indicated:

At September 30, 2022

Amortized

Allowances for 

Unrealized

Unrealized

Fair

(Dollars in millions)

Cost

Credit Losses

Appreciation

Depreciation

Value

Fixed maturity securities – available for sale

U.S. Treasury securities and obligations of

 U.S. government agencies and corporations 

$

602

$

-

$

-

$

(40)

$

562

Obligations of U.S. states and political

 subdivisions

519

-

1

(38)

481

Corporate securities

3,962

(29)

13

(382)

3,564

Asset-backed securities

3,801

-

1

(157)

3,645

Mortgage-backed securities

Commercial

556

-

-

(61)

495

Agency residential

1,562

-

-

(195)

1,367

Non-agency residential

3

-

-

-

3

Foreign government securities

688

-

4

(65)

626

Foreign corporate securities

1,515

(1)

4

(192)

1,326

Total fixed maturity securities - available for sale

$

13,207

$

(30)

$

23

$

(1,130)

$

12,070

(Some amounts may not reconcile due to rounding.)

At December 31, 2021

Amortized

Allowances for

Unrealized

Unrealized

Fair

(Dollars in millions)

Cost

Credit Losses

Appreciation

Depreciation

Value

Fixed maturity securities – available for sale

U.S. Treasury securities and obligations of

 U.S. government agencies and corporations 

$

657

$

-

$

9

$

(3)

$

663

Obligations of U.S. states and political

 subdivisions

559

-

29

(1)

587

Corporate securities

4,036

(19)

89

(31)

4,075

Asset-backed securities

3,464

(8)

21

(11)

3,466

Mortgage-backed securities

Commercial

586

-

21

(4)

603

Agency residential

1,255

-

16

(10)

1,261

Non-agency residential

4

-

-

-

4

Foreign government securities

677

-

22

(7)

692

Foreign corporate securities

1,494

-

34

(18)

1,510

Total fixed maturity securities - available for sale

$

12,733

$

(27)

$

241

$

(86)

$

12,860

(Some amounts may not reconcile due to rounding.)

The following tables show amortized cost, allowance for credit losses, gross unrealized appreciation/(depreciation)

and fair value of fixed maturity securities held to maturity as of the dates indicated:

At September 30, 2022

Amortized

Allowances for

Unrealized

Unrealized

Fair

(Dollars in millions)

Cost

Credit Loss

Appreciation

Depreciation

Value

Fixed maturity securities – held to maturity

Corporate securities

$

159

$

(2)

$

-

$

(11)

$

147

Asset-backed securities

625

(6)

1

(10)

611

Mortgage-backed securities

Commercial

6

-

-

-

6

Foreign corporate securities

28

(1)

-

(1)

26

Total fixed maturity securities - held to maturity

$

818

$

(9)

$

1

$

(21)

$

789

(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 tables by

contractual maturity. Mortgage-backed securities are generally more likely to be prepaid than other fixed maturity

securities. 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 September 30, 2022

At December 31, 2021

Amortized

Fair

Amortized

Fair

(Dollars in millions)

Cost

Value

Cost

Value

Fixed maturity securities – available for sale:

 Due in one year or less

$

554

$

537

$

586

$

584

 Due after one year through five years

3,730

3,455

3,488

3,527

 Due after five years through ten years

2,034

1,752

2,260

2,310

 Due after ten years

967

815

1,088

1,106

Asset-backed securities

3,801

3,645

3,464

3,466

Mortgage-backed securities

Commercial

556

495

586

603

Agency residential

1,562

1,367

1,255

1,261

Non-agency residential

3

3

4

4

Total fixed maturity securities - available for sale

$

13,207

$

12,070

$

12,733

$

12,860

(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.

At September 30, 2022

Amortized

Fair

(Dollars in millions)

Cost

Value

Fixed maturity securities – held to maturity:

 Due after one year through five years

$

61

$

58

 Due after five years through ten years

46

41

 Due after ten years

80

74

Asset-backed securities

625

611

Mortgage-backed securities

Commercial

6

6

Total fixed maturity securities - held to maturity

$

818

$

789

(Some amounts may not reconcile due to rounding.)

During the third quarter of 2022, the Company re-designated a portion of its fixed maturity securities from its

fixed maturity – available for sale portfolio to its fixed maturity – held to maturity portfolio. The fair value of the

securities reclassified at the date of transfer was $

722

 million, net of allowance for current expected credit losses,

which was subsequently recognized as the new amortized cost basis. As of the date of transfer, these securities

had an unrealized loss of $

53

 million, which remained in accumulated other comprehensive income on the balance

sheet, and will be amortized into income through an adjustment to the yields of the underlying securities over the

remaining life of the securities.

The Company evaluated fixed maturity securities classified as held to maturity for current expected credit losses as

of September 30, 2022 utilizing risk characteristics of each security, including credit rating, remaining time to

maturity, adjusted for prepayment considerations, and subordination level, and applying default and recovery

rates, which include the incorporation of historical credit loss experience and macroeconomic forecasts, to develop

an estimate of current expected credit losses. These fixed maturities classified as held to maturity are of a high

credit quality and are all rated investment grade as of September 30, 2022.

The changes in net unrealized appreciation (depreciation) for the Company’s investments are derived from the

following sources for the periods indicated:

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Increase (decrease) during the period between the fair value and cost of 

 investments carried at fair value, and deferred taxes thereon:

Fixed maturity securities - short-term investments

$

(307)

$

(52)

$

(1,315)

$

(126)

Change in unrealized appreciation (depreciation), pre-tax

(307)

(52)

(1,315)

(126)

Deferred tax benefit (expense) 

65

11

276

27

Change in unrealized appreciation (depreciation), net of deferred taxes, 

 included in stockholder's equity 

$

(242)

$

(41)

$

(1,039)

$

(100)

(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 September 30, 2022 By Security Type

Less than 12 months

Greater than 12 months

Total

Gross

Gross

Gross

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

(Dollars in millions)

Value

Depreciation

Value

Depreciation

Value

Depreciation

Fixed maturity securities -available for sale

U.S. Treasury securities and obligations of 

 U.S. government agencies and corporations

$

395

$

(22)

$

143

$

(18)

$

538

$

(40)

Obligations of U.S. states and political subdivisions

327

(30)

25

(8)

351

(38)

Corporate securities

2,447

(260)

550

(104)

2,997

(365)

Asset-backed securities

2,718

(153)

39

(4)

2,757

(157)

Mortgage-backed securities

Commercial

489

(61)

6

(1)

495

(61)

Agency residential

1,060

(133)

306

(62)

1,365

(195)

Non-agency residential

2

-

1

-

3

-

Foreign government securities

457

(43)

116

(22)

573

(65)

Foreign corporate securities

907

(112)

314

(80)

1,222

(192)

Total 

8,802

(812)

1,499

(301)

10,302

(1,113)

Securities where an allowance for credit losses 

 was recorded

20

(17)

-

-

20

(17)

Total fixed maturity securities

$

8,822

$

(830)

$

1,499

$

(301)

$

10,322

$

(1,130)

(Some amounts may not reconcile due to rounding.)

Duration of Unrealized Loss at September 30, 2022 By Maturity

Less than 12 months

Greater than 12 months

Total

Gross

Gross

Gross

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

(Dollars in millions)

Value

Depreciation

Value

Depreciation

Value

Depreciation

Fixed maturity securities - available for sale

Due in one year or less

$

399

$

(7)

$

40

$

(3)

$

440

$

(10)

Due in one year through five years

2,377

(184)

602

(88)

2,978

(272)

Due in five years through ten years

1,211

(182)

360

(101)

1,570

(283)

Due after ten years

546

(93)

146

(41)

692

(134)

Asset-backed securities

2,718

(153)

39

(4)

2,757

(157)

Mortgage-backed securities

1,551

(194)

313

(63)

1,864

(256)

Total 

8,802

(812)

1,499

(301)

10,302

(1,113)

Securities where an allowance for credit losses 

 was recorded

20

(17)

-

-

20

(17)

Total fixed maturity securities

$

8,822

$

(830)

$

1,499

$

(301)

$

10,322

$

(1,130)

(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 September 30, 2022 were $

10

 billion and $

1

 billion, respectively. The fair value of

securities for the single issuer (the United States government) whose securities comprised the largest unrealized

loss position at September 30, 2022, did not exceed

4.5

% of the overall fair value 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 $

830

 million of unrealized losses related to fixed maturity

securities available for sale that have been in an unrealized loss position for less than one year were generally

comprised of domestic and foreign corporate securities, asset backed securities and agency residential mortgage

backed securities. Of these unrealized losses, $

723

 million were related to securities that were rated investment

grade by at least one nationally recognized rating agency. The $

301

 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 $

273

 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 September 30, 2022, the unrealized losses are due to

changes in interest rates and non-issuer specific credit spreads and are not credit related. In addition, the

contractual terms of these securities do not permit these securities to be settled at a price less than their

amortized cost. 

The Company, given the size of its investment portfolio and capital position, does not have the intent to sell these

securities; and it is more likely than not that the Company will not have to sell the security before recovery of its

cost basis. In addition, all securities currently in an unrealized loss position are current with respect to principal

and interest payments.

The tables below display the aggregate fair value and gross unrealized depreciation of fixed maturity securities

available for sale, by security type and contractual maturity, in each case subdivided according to length of time

that individual securities had been in a continuous unrealized loss position for the periods indicated. The amounts

presented in the tables below include $

16

 million of fair value and $(

0.4

) million of gross unrealized depreciation

as of December 31, 2021 related to fixed maturity securities available for sale for which the Company has recorded

an allowance for credit losses.

Duration of Unrealized Loss at December 31, 2021 By Security Type

Less than 12 months

Greater than 12 months

Total

Gross

Gross

Gross

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

(Dollars in millions)

Value

Depreciation

Value

Depreciation

Value

Depreciation

Fixed maturity securities -available for sale

U.S. Treasury securities and obligations of 

 U.S. government agencies and corporations

$

267

$

(3)

$

-

$

-

$

267

$

(3)

Obligations of U.S. states and political subdivisions

51

(1)

3

-

54

(1)

Corporate securities

1,465

(25)

201

(6)

1,666

(31)

Asset-backed securities

1,891

(11)

38

-

1,929

(11)

Mortgage-backed securities

Commercial

139

(2)

35

(2)

174

(4)

Agency residential

699

(7)

168

(3)

867

(10)

Non-agency residential

1

-

-

-

2

-

Foreign government securities

200

(5)

15

(2)

215

(7)

Foreign corporate securities

677

(17)

33

(2)

710

(18)

Total fixed maturity securities

$

5,390

$

(71)

$

492

$

(15)

$

5,882

$

(86)

(Some amounts may not reconcile due to rounding.)

Duration of Unrealized Loss at December 31, 2021 By Maturity

Less than 12 months

Greater than 12 months

Total

Gross

Gross

Gross

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

(Dollars in millions)

Value

Depreciatio

n

Value

Depreciatio

n

Value

Depreciatio

n

Fixed maturity securities - available for sale

Due in one year or less

$

81

$

(2)

$

36

$

(4)

$

117

$

(6)

Due in one year through five years

1,209

(19)

154

(3)

1,364

(22)

Due in five years through ten years

853

(21)

34

(2)

887

(23)

Due after ten years

517

(10)

27

(1)

543

(11)

Asset-backed securities

1,891

(11)

38

-

1,929

(11)

Mortgage-backed securities

839

(9)

203

(5)

1,042

(14)

Total fixed maturity securities

$

5,390

$

(71)

$

492

$

(15)

$

5,882

$

(86)

(Some amounts may not reconcile due to rounding.)

The aggregate fair value and gross unrealized losses related to investments in an unrealized loss position at

December 31, 2021 were $

5.9

 billion and $

86

 million, respectively. The fair value of securities for the issuer (the

United States government) whose securities comprised the largest unrealized loss position at December 31, 2021,

did not exceed

2.1

% of the overall fair value of the Company’s fixed maturity securities available for sale. The fair

value of the securities for the issuer with the second largest unrealized loss comprised less than

0.4

% 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 $

71

 million of unrealized losses related

to fixed maturity securities that have been in an unrealized loss position for less than one year were generally

comprised of domestic and foreign corporate securities, foreign government securities, asset backed securities and

agency residential mortgage backed securities. Of these unrealized losses, $

62

 million were related to securities

that were rated investment grade by at least one nationally recognized rating agency. The $

15

 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 $

12

 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 tables below for the periods indicated:

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Fixed maturities

$

129

$

83

$

339

$

260

Equity securities

7

4

15

10

Short-term investments and cash

4

-

4

-

Other invested assets

Limited partnerships

(25)

82

63

260

Dividends from preferred shares of affiliate

8

8

23

23

Other 

11

31

37

63

Gross investment income before adjustments

132

208

482

617

Funds held interest income (expense)

1

1

5

7

Interest income from Parent

3

2

7

4

Gross investment income 

137

210

494

629

Investment expenses

(13)

(13)

(37)

(36)

Net investment income

$

124

$

197

$

457

$

593

(Some amounts may not reconcile due to rounding.)

The Company records results from limited partnership investments on the equity method of accounting with

changes in value reported through net investment income. The net investment income from limited partnerships is

dependent upon the Company’s share of the net asset values of interests underlying each limited partnership. Due

to the timing of receiving financial information from these partnerships, the results are generally reported on a

one month or quarter lag. If the Company determines there has been a significant decline in value of a limited

partnership during this lag period, a loss will be recorded in the period in which the Company identifies the decline. 

The Company had contractual commitments to invest up to an additional $

1.1

 billion in limited partnerships and

private placement loan securities at September 30, 2022. These commitments will be funded when called in

accordance with the partnership and loan agreements, which have investment periods that expire, unless

extended, through

2026

.

The Company participates in a private placement liquidity sweep facility (“the facility”). The primary purpose of the

facility is to enhance the Company’s return on its short-term investments and cash positions. The facility invests in

high quality, short-duration securities and permits daily liquidity. The Company consolidates its participation in the

facility. As of September 30, 2022, the fair value of investments in the facility consolidated within the Company’s

balance sheets was $

241

 million. 

Other invested assets, at fair value, as of September 30, 2022 and December 31, 2021, were comprised of

preferred shares held in Everest Preferred International Holdings, Ltd. (“Preferred Holdings”), a wholly-owned

subsidiary of Group.

Variable Interest Entities

The Company is engaged with various special purpose entities and other entities that are deemed to be VIEs

primarily as an investor through normal investment activities but also as an investment manager. A VIE is an entity

that either has investors that lack certain essential characteristics of a controlling financial interest, such as simple

majority kick-out rights, or lacks sufficient funds to finance its own activities without financial support provided by

other entities. The Company performs ongoing qualitative assessments of its VIEs to determine whether the

Company has a controlling financial interest in the VIE and therefore is the primary beneficiary. The Company is

deemed to have a controlling financial interest when it has both the ability to direct the activities that most

significantly impact the economic performance of the VIE and the obligation to absorb losses or right to receive

benefits from the VIE that could potentially be significant to the VIE. Based on the Company’s assessment, if it

determines it is the primary beneficiary, the Company consolidates the VIE in the Company’s Consolidated

Financial Statements. As of September 30, 2022 and December 31, 2021, the Company did not hold any securities

for which it is the primary beneficiary.

The Company, through normal investment activities, makes passive investments in general and limited

partnerships and other alternative investments. For these non-consolidated VIEs, the Company has determined it

is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic

performance of the investments. The Company’s maximum exposure to loss as of September 30, 2022 and

December 31, 2021 is limited to the total carrying value of $

1.8

 billion and $

1.7

 billion, respectively, which are

included in general and limited partnerships and other alternative investments in Other Invested Assets in the

Company's Consolidated Balance Sheets. As of September 30, 2022, the Company has outstanding commitments

totaling $

766

 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 reported in fixed maturities available-for-sale and fixed maturities held to maturity. 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

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Fixed maturity securities:

Allowances for credit losses

$

(12)

$

(7)

$

(12)

$

(30)

Net realized gains (losses) from dispositions

(45)

3

(60)

11

Equity securities, fair value:

Net realized gains (losses) from dispositions

57

-

19

6

Gains (losses) from fair value adjustments

(134)

(4)

(451)

137

Other invested assets

6

2

10

6

Other invested assets, fair value:

Gains (losses) from fair value adjustments

(111)

(44)

(350)

137

Short-term investment gains (losses)

1

-

1

-

Total net gains (losses) on investments

$

(237)

$

(51)

$

(842)

$

267

(Some amounts may not reconcile due to rounding.)

Roll Forward of Allowance for Credit Losses – Fixed maturities

Three Months Ended September 30, 2022

Nine Months Ended September 30, 2022

Asset Backed

Securities

Foreign

Corporate

Securities

Asset Backed

Securities

Foreign

Corporate

Securities

Corporate

Securities

Corporate

Securities

Total

Total

(Dollars in millions)

Beginning Balance

$

(26)

$

-

$

(2)

$

(28)

$

(19)

$

(8)

$

-

$

(27)

Credit losses on securities where credit

losses were not previously recorded

(2)

(6)

(1)

(9)

(9)

(6)

(2)

(17)

Increases in allowance on previously

impaired securities

(3)

-

-

(3)

(4)

-

-

(4)

Decreases in allowance on previously 

impaired securities

-

-

-

-

-

-

-

-

Reduction in allowance due to disposals

-

-

-

-

1

8

1

9

Balance as of September 30, 2022

$

(31)

$

(6)

$

(2)

$

(39)

$

(31)

$

(6)

$

(2)

$

(39)

(Some amounts may not reconcile due to rounding.)

Roll Forward of Allowance for Credit Losses – Fixed maturities

Three Months Ended September 30, 2021

Nine Months Ended September 30, 2021

Asset

Asset

Corporate

Backed

Corporate

Backed

Securities

Securities

Total

Securities

Securities

Total

(Dollars in millions)

Beginning Balance

$

(18)

$

(5)

$

(24)

$

(1)

$

-

$

(2)

Credit losses on securities where credit

losses were not previously recorded

(5)

-

(5)

(21)

(5)

(26)

Increases in allowance on previously

impaired securities

(1)

(3)

(4)

(2)

(3)

(5)

Decreases in allowance on previously 

impaired securities

-

-

-

-

-

-

Reduction in allowance due to disposals

1

-

1

2

-

2

Balance as of September 30, 2021

$

(23)

$

(8)

$

(31)

$

(23)

$

(8)

$

(31)

(Some amounts may not reconcile due to rounding.)

The proceeds and split between gross gains and losses from dispositions of fixed maturity and equity securities, are

presented in the table below for the periods indicated:

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Proceeds from sales of fixed maturity securities, available for sale

$

301

$

152

$

812

$

394

Gross gains from dispositions

1

9

7

24

Gross losses from dispositions

(46)

(6)

(67)

(13)

Proceeds from sales of equity securities

$

591

$

104

$

1,016

$

450

Gross gains from dispositions

59

3

67

18

Gross losses from dispositions

(2)

(3)

(48)

(11)

(Some amounts may not reconcile due to rounding.)

XML

Reserves For Losses, LAE And Future Policy Benefit Reserve

9 Months Ended

Sep. 30, 2022

Reserves For Losses, LAE And Future Policy Benefit Reserve [Abstract]

Reserves For Losses, LAE And Future Policy Benefit Reserve

4. RESERVES FOR LOSSES, LAE AND FUTURE POLICY BENEFIT RESERVE 

Activity in the reserve for losses and LAE is summarized for the periods indicated:

Nine Months Ended September 30,

(Dollars in millions)

2022

2021

Gross reserves beginning of period

$

13,121

$

11,578

Less reinsurance recoverables on unpaid losses

(3,651)

(3,951)

Net reserves beginning of period

9,470

7,627

Incurred related to:

Current year

4,606

4,106

Prior years

18

(4)

Total incurred losses and LAE

4,624

4,103

Paid related to:

Current year 

1,502

1,118

Prior years

1,303

1,203

Total paid losses and LAE

2,805

2,321

Foreign exchange/translation adjustment 

(70)

(20)

Net reserves end of period

11,221

9,389

Plus reinsurance recoverables on unpaid losses

3,628

3,839

Gross reserves end of period

$

14,849

$

13,228

(Some amounts may not reconcile due to rounding.)

Current year incurred losses were $

4.6

 billion and $

4.1

 billion for the nine months ended September 30, 2022 and

2021, respectively. Gross and net reserves increased for the nine months ended September 30, 2022, reflecting an

increase in underlying exposure due to earned premium growth year over year, the impact of an increase of $

132

million in catastrophe losses in 2022 compared to 2021 and the impact of $

25

 million of incurred losses related to

the Ukraine/Russia war. Prior year incurred development of $

18

 million is primarily driven by unfavorable

movement on prior year catastrophes .

The war in the Ukraine is ongoing and an evolving event. Economic and legal sanctions have been levied against

Russia, specific named individuals and entities connected to the Russian government, as well as businesses located

in the Russian Federation and/or owned by Russian nationals by numerous countries, including the United States.

The significant political and economic uncertainty surrounding the war and associated sanctions have impacted

economic and investment markets both within Russia and around the world. The Company has recorded $

25

million of incurred underwriting losses related to the Ukraine and Russia conflict for the nine months ended

September 30, 2022.

XML

Fair Value

9 Months Ended

Sep. 30, 2022

Fair Value [Abstract]

Fair Value

5. FAIR VALUE

GAAP guidance regarding fair value measurements addresses how companies should measure fair value when they

are required to use fair value measures for recognition or disclosure purposes under GAAP and provides a common

definition of fair value to be used throughout GAAP. It defines fair value as the price that would be received to sell

an asset or paid to transfer a liability in an orderly fashion between market participants at the measurement date.

In addition, it establishes a three-level valuation hierarchy for the disclosure of fair value measurements. The

valuation hierarchy is based on the transparency of inputs to the valuation of an asset or liability. The level in the

hierarchy within which a given fair value measurement falls is determined based on the lowest level input that is

significant to the measurement, with Level 1 being the highest priority and Level 3 being the lowest priority. 

The levels in the hierarchy are defined as follows:

Level 1 Inputs to the valuation methodology are observable inputs that reflect unadjusted quoted prices for

identical assets or liabilities in an active market;

Level 2: Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active

markets, and inputs that are observable for the asset or liability, either directly or indirectly, for

substantially the full term of the financial instrument;

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The Company’s fixed maturity and equity securities are primarily managed by third party investment asset

managers. The investment asset managers managing publicly traded securities obtain prices from nationally

recognized pricing services. These services seek to utilize market data and observations in their evaluation process.

They use pricing applications that vary by asset class and incorporate available market information and when fixed

maturity securities do not trade on a daily basis the services will apply available information through processes

such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing. In addition, they

use model processes, such as the Option Adjusted Spread model to develop prepayment and interest rate

scenarios for securities that have prepayment features. 

The investment asset managers do not make any changes to prices received from either the pricing services or the

investment brokers. In addition, the investment asset managers have procedures in place to review the

reasonableness of the prices from the service providers and may request verification of the prices. The Company

also continually performs quantitative and qualitative analysis of prices, including but not limited to initial and

ongoing review of pricing methodologies, review of prices obtained from pricing services and third party

investment asset managers, review of pricing statistics and trends, and comparison of prices for certain securities

with a secondary price source for reasonableness. No material variances were noted during these price validation

procedures. In limited situations, where financial markets are inactive or illiquid, the Company may use its own

assumptions about future cash flows and risk-adjusted discount rates to determine fair value. At September 30,

2022, $

1.6

 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, 2021, $

2.0

 billion of fixed maturities were fair valued

using unobservable inputs. 

The Company internally manages a public equity portfolio which had a fair value at September 30, 2022 and

December 31, 2021 of $

1.2

 billion and $

1.3

 billion, respectively. During the fourth quarter of 2021, the Company

began to internally manage a portfolio of collateralized loan obligations included in asset-backed securities

available for sale, which had a fair value of $

2.4

 billion and $

2.0

 billion at September 30, 2022 and December 31,

2021, respectively. All prices for these securities were obtained from publicly published sources or nationally

recognized pricing vendors. 

Equity securities denominated in U.S. currency with quoted prices in active markets for identical assets are

categorized as Level 1 since the quoted prices are directly observable. Equity securities traded on foreign

exchanges are categorized as Level 2 due to the added input of a foreign exchange conversion rate to determine

fair value. The Company uses foreign currency exchange rates published by nationally recognized sources.

Fixed maturity securities listed in the tables below are generally categorized as Level 2, since a particular security

may not have traded but the pricing services are able to use valuation models with observable market inputs such

as interest rate yield curves and prices for similar fixed maturity securities in terms of issuer, maturity and

seniority. For foreign government securities and foreign corporate securities, the fair values provided by the third

party pricing services in local currencies, and where applicable, are converted to U.S. dollars using currency

exchange rates from nationally recognized sources.

In addition to the valuations from investment managers, some of the fixed maturities with fair values categorized

as Level 3 result when prices are not available from the nationally recognized pricing services. The asset managers

may obtain non-binding price quotes for the securities from brokers. The single broker quotes are provided by

market makers or broker-dealers who are recognized as market participants in the markets in which they are

providing the quotes. The prices received from brokers are reviewed for reasonableness by the third party asset

managers and the Company. If the broker quotes are for foreign denominated securities, the quotes are converted

to U.S. dollars using currency exchange rates from nationally recognized sources. 

The composition and valuation inputs for the presented fixed maturities categories Level 1 and Level 2 are as

follows:

●

U.S. Treasury securities and obligations of U.S. government agencies and corporations are primarily comprised

of U.S. Treasury bonds and the fair value is based on observable market inputs such as quoted prices, reported

trades, quoted prices for similar issuances or benchmark yields;

●

Obligations of U.S. states and political subdivisions are comprised of state and municipal bond issuances and

the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar

securities, benchmark yields and credit spreads;

●

Corporate securities are primarily comprised of U.S. corporate and public utility bond issuances and the fair

values are based on observable market inputs such as quoted market prices, quoted prices for similar

securities, benchmark yields and credit spreads;

●

Asset-backed and mortgage-backed securities fair values are based on observable inputs such as quoted

prices, reported trades, quoted prices for similar issuances or benchmark yields and cash flow models using

observable inputs such as prepayment speeds, collateral performance and default spreads;

●

Foreign government securities are comprised of global non-U.S. sovereign bond issuances and the fair values

are based on observable market inputs such as quoted market prices, quoted prices for similar securities and

models with observable inputs such as benchmark yields and credit spreads and then, where applicable,

converted to U.S. dollars using an exchange rate from a nationally recognized source;

●

Foreign corporate securities are comprised of global non-U.S. corporate bond issuances and the fair values are

based on observable market inputs such as quoted market prices, quoted prices for similar securities and

models with observable inputs such as benchmark yields and credit spreads and then, where applicable,

converted to U.S. dollars using an exchange rate from a nationally recognized source.

The following table presents the fair value measurement levels for all assets, which the Company has recorded at

fair value as of the period indicated:

Fair Value Measurement Using:

Quoted Prices

in Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

Assets

Inputs

Inputs

(Dollars in millions)

September 30, 2022

(Level 1)

(Level 2)

(Level 3)

Assets:

Fixed maturities, available for sale

U.S. Treasury securities and obligations of

 U.S. government agencies and corporations

$

562

$

-

$

562

$

-

Obligations of U.S. states and political subdivisions

481

-

481

-

Corporate securities

3,564

-

2,845

719

Asset-backed securities

3,645

-

2,752

893

Mortgage-backed securities

Commercial

495

-

495

-

Agency residential

1,367

-

1,367

-

Non-agency residential

3

-

3

-

Foreign government securities

626

-

626

-

Foreign corporate securities

1,326

-

1,310

16

Total fixed maturities, available for sale

12,070

-

10,442

1,628

Equity securities, fair value

1,258

1,212

46

-

Other invested assets, fair value

1,680

-

-

1,680

(Some amounts may not reconcile due to rounding.)

Fair Value Measurement Using:

Quoted Prices

in Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

Assets

Inputs

Inputs

(Dollars in millions)

December 31, 2021

(Level 1)

(Level 2)

(Level 3)

Assets:

Fixed maturities, available for sale

U.S. Treasury securities and obligations of

 U.S. government agencies and corporations

$

663

$

-

$

663

$

-

Obligations of U.S. states and political subdivisions

587

-

587

-

Corporate securities

4,075

-

3,345

730

Asset-backed securities

3,466

-

2,215

1,251

Mortgage-backed securities

Commercial

603

-

603

-

Agency residential

1,261

-

1,261

-

Non-agency residential

4

-

4

-

Foreign government securities

692

-

692

-

Foreign corporate securities

1,510

-

1,494

16

Total fixed maturities, available for sale

12,860

-

10,863

1,997

Equity securities, fair value

1,758

1,722

36

-

Other invested assets, fair value

2,031

-

-

2,031

(Some amounts may not reconcile due to rounding.)

In addition, $

309

 million and $

287

 million of investments within other invested assets on the consolidated balance

sheets as of September 30, 2022 and December 31, 2021, respectively, are not included within the fair value

hierarchy tables as the assets are measured at NAV as a practical expedient to determine fair value. 

The following tables present the activity under Level 3, fair value measurements using significant unobservable

inputs for fixed maturities available for sale, for the periods indicated:

Total Fixed Maturities, Available for Sale

Three Months Ended September 30, 2022

Nine Months Ended September 30, 2022

Corporate

Asset Backed

Foreign

Corporate

Asset Backed

Foreign

(Dollars in millions)

Securities

Securities

CMBS

Corporate

Total

Securities

Securities

CMBS

Corporate

Total

Beginning balance fixed maturities

$

862

$

1,255

$

6

$

40

$

2,163

$

730

$

1,251

$

-

$

16

$

1,997

Total gains or (losses) (realized/unrealized)

Included in earnings

(3)

-

-

-

(3)

(6)

-

-

-

(6)

Included in other comprehensive

 income (loss)

(6)

65

-

-

59

(13)

(11)

-

(4)

(28)

Purchases, issuances and settlements

27

159

-

-

186

42

387

6

8

443

Transfers in (out) of Level 3 and reclassification of

securities in/(out) investment categories 

(163)

(587)

(6)

(24)

(779)

(35)

(735)

(6)

(4)

(779)

Ending balance

$

719

$

893

$

-

$

16

$

1,628

$

719

$

893

$

-

$

16

$

1,628

The amount of total gains or losses for the

 period included in earnings (or changes in

 net assets) attributable to the change in

 unrealized gains or losses relating to

 assets still held at the reporting date

$

(3)

$

-

$

-

$

-

$

(3)

$

(8)

$

8

$

-

$

-

$

-

(Some amounts may not reconcile due to rounding.)

Total Fixed Maturities, Available for Sale

Three Months Ended September 30, 2021

Nine Months Ended September 30, 2021

Corporate

Asset Backed

Foreign

Corporate

Asset Backed

Foreign

(Dollars in millions)

Securities

Securities

Corporate

Total

Securities

Securities

Corporate

Total

Beginning balance fixed maturities

$

635

$

815

$

5

$

1,455

$

631

$

623

$

6

$

1,260

Total gains or (losses) (realized/unrealized)

Included in earnings

3

(3)

-

-

(12)

(7)

-

(19)

Included in other comprehensive income (loss)

(1)

-

-

(2)

6

4

-

10

Purchases, issuances and settlements

87

192

-

279

99

384

(1)

482

Transfers in (out) of Level 3 and reclassification of

securities in/(out) investment categories 

-

-

-

-

-

-

-

-

Ending balance

$

723

$

1,004

$

5

$

1,732

$

723

$

1,004

$

5

$

1,732

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

$

(3)

$

-

$

(2)

$

(17)

$

(8)

$

-

$

(24)

(Some amounts may not reconcile due to rounding.)

The $

779

 million shown as transfers in/(out) of Level 3 and reclassification of securities in/(out) of investment

categories for the three and nine months ended September 30, 2022 relate mainly to previously designated Level 3

securities that the Company has reclassified from “fixed maturities – available for sale” to “fixed maturities – held

to maturity” during the third quarter of 2022. As “fixed maturities – held to maturity" are carried at amortized

cost, net of credit allowances rather than at fair value as “fixed maturities – available for sale”, these securities are

no longer included within the fair value hierarchy table or in the roll-forward of Level 3 securities. The fair values of

these securities are determined in a similar manner as the Company’s fixed maturity securities available for sale as

described above. The fair values of these securities incorporate the use of significant unobservable inputs and

therefore are classified as Level 3 within the fair value hierarchy as of September 30, 2022.

XML

Commitments And Contingencies

9 Months Ended

Sep. 30, 2022

Commitments And Contingencies [Abstract]

Commitments And Contingencies

6. COMMITMENTS AND CONTINGENCIES

In the ordinary course of business, the Company is involved in lawsuits, arbitrations and other formal and informal

dispute resolution procedures, the outcomes of which will determine the Company’s rights and obligations under

insurance and reinsurance agreements. In some disputes, the Company seeks to enforce its rights under an

agreement or to collect funds owing to it. In other matters, the Company is resisting attempts by others to collect

funds or enforce alleged rights. These disputes arise from time to time and are ultimately resolved through both

informal and formal means, including negotiated resolution, arbitration and litigation. In all such matters, the

Company believes that its positions are legally and commercially reasonable. The Company considers the statuses

of these proceedings when determining its reserves for unpaid loss and loss adjustment expenses. 

Aside from litigation and arbitrations related to these insurance and reinsurance agreements, the Company is not a

party to any other material litigation or arbitration.

XML

Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2022

Comprehensive Income (Loss) [Abstract]

Comprehensive Income (Loss)

7. COMPREHENSIVE INCOME (LOSS)

The following tables present the components of comprehensive income (loss) in the consolidated statements of

operations and comprehensive income (loss) for the periods indicated:

Three Months Ended

September 30, 2022

Nine Months Ended

September 30, 2022

(Dollars in millions)

Before Tax

Tax Effect

Net of Tax

Before Tax

Tax Effect

Net of Tax

Unrealized appreciation (depreciation) ("URA(D)") 

 on securities - non-credit related

$

(357)

75

$

(282)

$

(1,376)

288

$

(1,087)

Reclassification of net realized losses (gains) 

 included in net income (loss)

50

(11)

40

61

(13)

48

Foreign currency translation adjustments

(37)

8

(29)

(52)

11

(41)

Reclassification of amortization of net gain (loss) 

 included in net income (loss)

-

-

-

3

(1)

2

Total other comprehensive income (loss)

$

(343)

$

72

$

(271)

$

(1,364)

$

285

$

(1,078)

(Some amounts may not reconcile due to rounding)

Three Months Ended

September 30, 2021

Nine Months Ended

September 30, 2021

(Dollars in millions)

Before Tax

Tax Effect

Net of Tax

Before Tax

Tax Effect

Net of Tax

Unrealized appreciation (depreciation) ("URA(D)") 

 on securities - non-credit related

$

(55)

12

$

(43)

$

(139)

29

$

(110)

Reclassification of net realized losses (gains) 

 included in net income (loss)

3

(1)

2

13

(3)

10

Foreign currency translation adjustments

(26)

5

(21)

(6)

1

(5)

Reclassification of amortization of net gain (loss) 

 included in net income (loss)

2

-

2

7

(2)

6

Total other comprehensive income (loss)

$

(77)

$

16

$

(61)

$

(125)

$

26

$

(99)

(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

Nine Months Ended

Affected line item within the

September 30,

September 30,

statements of operations and 

AOCI component

2022

2021

2022

2021

comprehensive income (loss)

(Dollars in millions)

URA(D) on securities

$

50

$

3

$

61

$

13

Other net gains (losses) on investments

(11)

(1)

(13)

(3)

Income tax expense (benefit)

$

40

$

2

$

48

$

10

Net income (loss)

Benefit plan net gain (loss)

$

-

$

2

$

3

$

7

Other underwriting expenses

-

-

(1)

(2)

Income tax expense (benefit)

$

-

$

2

$

2

$

6

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

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Beginning balance of URA (D) on securities

$

(675)

$

255

$

122

$

313

Current period change in URA (D) of investments - non-credit related

(242)

(41)

(1,039)

(100)

Ending balance of URA (D) on securities

(917)

213

(917)

213

Beginning balance of foreign currency translation adjustments

8

45

20

29

Current period change in foreign currency translation adjustments

(29)

(21)

(41)

(5)

Ending balance of foreign currency translation adjustments 

(21)

24

(21)

24

Beginning balance of benefit plan net gain (loss)

(50)

(70)

(50)

(74)

Current period change in benefit plan net gain (loss)

-

2

2

6

Ending balance of benefit plan net gain (loss)

(49)

(68)

(49)

(68)

Ending balance of accumulated other comprehensive income (loss)

$

(987)

$

169

$

(987)

$

169

(Some amounts may not reconcile due to rounding.)

XML

Collateralized Reinsurance And Trust Agreements

9 Months Ended

Sep. 30, 2022

Collateralized Reinsurance And Trust Agreements [Abstract]

Collateralized Reinsurance And Trust Agreements

8. COLLATERALIZED REINSURANCE AND TRUST AGREEMENTS 

A subsidiary of the Company, Everest Reinsurance company (“Everest Re”), has established a trust agreement,

which effectively uses Everest Re’s investments as collateral, as security for assumed losses payable to non-

affiliated ceding companies. At September 30, 2022, the total amount on deposit in the trust account was

$

632

 million which includes $

78

 million of restricted cash.

The Company entered into various collateralized reinsurance agreements with Kilimanjaro Re Limited

(“Kilimanjaro”), a Bermuda based special purpose reinsurer, to provide the Company with catastrophe reinsurance

coverage. These agreements are multi-year reinsurance contracts which cover named storm and earthquake

events. The table below summarizes the various agreements:

(Dollars in millions)

Class

Description

Effective Date

Expiration Date

Limit

Coverage

Basis

Series 2018-1 Class A-2

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/30/2018

5/5/2023

$

63

Aggregate

Series 2018-1 Class B-2

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/30/2018

5/5/2023

200

Aggregate

Series 2019-1 Class A-1

US, Canada, Puerto Rico – Named Storm and Earthquake Events

12/12/2019

12/19/2023

150

Occurrence

Series 2019-1 Class B-1

US, Canada, Puerto Rico – Named Storm and Earthquake Events

12/12/2019

12/19/2023

275

Aggregate

Series 2019-1 Class A-2

US, Canada, Puerto Rico – Named Storm and Earthquake Events

12/12/2019

12/19/2024

150

Occurrence

Series 2019-1 Class B-2

US, Canada, Puerto Rico – Named Storm and Earthquake Events

12/12/2019

12/19/2024

275

Aggregate

Series 2021-1 Class A-1

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/8/2021

4/21/2025

150

Occurrence

Series 2021-1 Class B-1

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/8/2021

4/21/2025

85

Aggregate

Series 2021-1 Class C-1

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/8/2021

4/21/2025

85

Aggregate

Series 2021-1 Class A-2

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/8/2021

4/20/2026

150

Occurrence

Series 2021-1 Class B-2

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/8/2021

4/20/2026

90

Aggregate

Series 2021-1 Class C-2

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/8/2021

4/20/2026

90

Aggregate

Series 2022-1 Class A

US, Canada, Puerto Rico – Named Storm and Earthquake Events

6/22/2022

6/22/2025

300

Aggregate

Total available limit as of September 30, 2022

$

2,063

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. Currently, none of the published insured loss estimates for catastrophe

events during the applicable covered periods of the various agreements have exceeded the single event retentions

or aggregate retentions under the terms of the agreements that would result in a recovery. 

Kilimanjaro has financed the various property catastrophe reinsurance coverages by issuing catastrophe bonds to

unrelated, external investors. The proceeds from the issuance of the Notes listed below are held in reinsurance

trusts throughout the duration of the applicable reinsurance agreements and invested solely in US government

money market funds with a rating of at least “AAAm” by Standard & Poor’s.

(Dollars in millions)

Note Series

Issue Date

Maturity Date

Amount

Series 2018-1 Class A-2

4/30/2018

5/5/2023

$

63

Series 2018-1 Class B-2

4/30/2018

5/5/2023

200

Series 2019-1 Class A-1

12/12/2019

12/19/2023

150

Series 2019-1 Class B-1

12/12/2019

12/19/2023

275

Series 2019-1 Class A-2

12/12/2019

12/19/2024

150

Series 2019-1 Class B-2

12/12/2019

12/19/2024

275

Series 2021-1 Class A-1

4/8/2021

4/21/2025

150

Series 2021-1 Class B-1

4/8/2021

4/21/2025

85

Series 2021-1 Class C-1

4/8/2021

4/21/2025

85

Series 2021-1 Class A-2

4/8/2021

4/20/2026

150

Series 2021-1 Class B-2

4/8/2021

4/20/2026

90

Series 2021-1 Class C-2

4/8/2021

4/20/2026

90

Series 2022-1 Class A

6/22/2022

6/22/2025

300

$

2,063

XML

Senior Notes

9 Months Ended

Sep. 30, 2022

Senior Notes [Abstract]

Senior Notes

9. 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.

September 30, 2022

December 31, 2021

Consolidated

Consolidated

Principal 

Balance Sheet

Fair

Balance Sheet

Fair

(Dollars in millions)

Date Issued

Date Due

Amounts

Amount

Value

Amount

Value

4.868

% Senior notes

06/05/2014

06/01/2044

400

$

397

$

339

$

397

$

504

3.5

% Senior notes

10/07/2020

10/15/2050

1,000

980

669

980

1,055

3.125

% Senior notes

10/04/2021

10/15/2052

1,000

969

627

968

983

2,400

$

2,347

$

1,635

$

2,346

$

2,542

Interest expense incurred in connection with these senior notes is as follows for the periods indicated:

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Interest expense incurred

4.868

% Senior notes

$

5

$

5

$

15

$

15

Interest expense incurred

3.5

% Senior notes

9

9

26

26

Interest expense incurred

3.125

% Senior notes

8

-

24

-

$

22

$

14

$

65

$

41

XML

Long Term Subordinated Notes

9 Months Ended

Sep. 30, 2022

Long Term Subordinated Notes [Abstract]

Long Term Subordinated Notes

10. LONG TERM SUBORDINATED NOTES

The table below displays Holdings’ outstanding fixed to floating rate long term subordinated notes. Fair value is

based on quoted market prices, but due to limited trading activity, these subordinated notes are considered Level

2 in the fair value hierarchy.

September 30, 2022

December 31, 2021

Original

Consolidated

Consolidated

Principal

Maturity Date

Balance

Fair

Balance

Fair

(Dollars in millions)

Date Issued

Amount

Scheduled

Final

Sheet Amount

Value

Sheet Amount

Value

Long term subordinated notes

04/26/2007

$

400

05/15/2037

05/01/2067

$

218

$

179

$

224

$

216

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 consecutive years

. Deferred interest will accumulate interest at the applicable rate compounded

quarterly for periods from and including May 15, 2017. The reset quarterly interest rate for August 15, 2022 to

November 14, 2022 is

5.29

%. 

Holdings may redeem the long term subordinated notes on or after

May 15, 2017

, in whole or in part at

100

% of

the principal amount plus accrued and unpaid interest; however, redemption on or after the scheduled maturity

date and prior to

May 1, 2047

 is subject to a replacement capital covenant. This covenant is for the benefit of

certain senior note holders and it mandates that Holdings receive proceeds from the sale of another subordinated

debt issue, of at least similar size, before it may redeem the subordinated notes. The Company’s

4.868

% senior

notes, due on

June 1, 2044

,

3.5

% senior notes due on

October 15, 2050

 and

3.125

% senior notes due on

October

15, 2052

 are the Company’s long term indebtedness that rank senior to the long term subordinated notes.

In 2009, the Company had reduced its outstanding amount of long term subordinated notes by $

161

 million

through the initiation of a cash tender offer for any and all of the long term subordinated notes. In addition, the

Company repurchased and retired $

13

 million of the long term subordinated notes in 2020. During the third

quarter of 2022, the Company repurchased and retired $

6

 million of the outstanding long term subordinated

notes. The Company realized a gain of $

1

 million on the transaction.

Interest expense incurred in connection with these long term subordinated notes is as follows for the periods

indicated:

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Interest expense incurred

$

3

$

1

$

6

$

4

XML

Federal Home Loan Bank Membership

9 Months Ended

Sep. 30, 2022

Federal Home Loan Bank Membership [Abstract]

Federal Home Loan Bank Membership

11. FEDERAL HOME LOAN BANK MEMBERSHIP

Everest Re is a member of the Federal Home Loan Bank of New York (“FHLBNY”), which allows Everest Re to

borrow up to

10

% of its statutory admitted assets. As of September 30, 2022, Everest Re had admitted assets of

approximately $

22.0

 billion which provides borrowing capacity of up to approximately $

2.2

 billion. As of

September 30, 2022, Everest Re has $

519

 million of borrowings outstanding, with maturities in November and

December 2022 and interest payable at interest rates between

0.53

% and

0.65

%. Everest Re incurred interest

expense of $

0.8

 million and $

0.3

 million for the three months ended September 30, 2022 and 2021, respectively.

Everest Re incurred interest expense of $

2.3

 million and $

0.8

 million for the nine months ended September 30,

2022 and 2021, respectively. The FHLBNY membership agreement requires that

4.5

% of borrowed funds be used

to acquire additional membership stock.

XML

Segment Reporting

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Reporting

12. SEGMENT REPORTING

The Reinsurance operation writes worldwide property and casualty reinsurance and specialty lines of business, on

both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies. 

Business is written in the United States as well as through branches in Canada and Singapore. The Insurance

operation writes property and casualty insurance directly and through brokers, surplus lines brokers and general

agents within the United States. 

These segments are managed independently, but conform with corporate guidelines with respect to pricing, risk

management, control of aggregate catastrophe exposures, capital, investments and support operations. 

Management generally monitors and evaluates the financial performance of these operating segments based upon

their underwriting results. 

Underwriting results include earned premium less losses and LAE incurred, commission and brokerage expenses

and other underwriting expenses. The Company measures its underwriting results using ratios, in particular loss,

commission and brokerage and other underwriting expense ratios, which, respectively, divide incurred losses,

commissions and brokerage and other underwriting expenses by premiums earned. 

The Company does not maintain separate balance sheet data for its operating segments. Accordingly, the

Company does not review and evaluate the financial results of its operating segments based upon balance sheet

data. 

The following tables present the underwriting results for the operating segments for the periods indicated:

Three Months Ended September 30, 2022

Nine Months Ended September 30, 2022

(Dollars in millions)

Reinsurance

Insurance

Total 

Reinsurance

Insurance

Total 

Gross written premiums

$

1,681

$

905

$

2,585

$

4,454

$

2,773

$

7,227

Net written premiums

1,506

722

2,228

3,936

2,083

6,019

Premiums earned

$

1,398

$

706

$

2,104

$

3,902

$

1,985

$

5,887

Incurred losses and LAE

1,531

564

2,094

3,227

1,398

4,624

Commission and brokerage

337

85

423

985

231

1,216

Other underwriting expenses

33

94

127

97

269

365

Underwriting gain (loss)

$

(504)

$

(37)

$

(541)

$

(406)

$

87

$

(319)

Net investment income

124

457

Net gains (losses) on investments

(237)

(842)

Corporate expense

(5)

(17)

Interest, fee and bond issue cost amortization expense

(26)

(74)

Other income (expense) 

7

(2)

Income (loss) before taxes

$

(677)

$

(796)

(Some amounts may not reconcile due to rounding)

Three Months Ended September 30, 2021

Nine Months Ended September 30, 2021

(Dollars in millions)

Reinsurance

Insurance

Total 

Reinsurance

Insurance

Total 

Gross written premiums

$

1,693

$

831

$

2,524

$

4,552

$

2,422

$

6,974

Net written premiums

1,461

608

2,069

3,961

1,802

5,763

Premiums earned

$

1,280

$

571

$

1,851

$

3,690

$

1,625

$

5,315

Incurred losses and LAE

1,208

445

1,653

2,917

1,185

4,103

Commission and brokerage

320

69

389

935

190

1,126

Other underwriting expenses

32

77

110

101

228

329

Underwriting gain (loss)

$

(279)

$

(21)

$

(300)

$

(264)

$

22

$

(243)

Net investment income

197

593

Net gains (losses) on investments

(51)

267

Corporate expense

(11)

(23)

Interest, fee and bond issue cost amortization expense

(16)

(47)

Other income (expense) 

10

12

Income (loss) before taxes

$

(171)

$

560

(Some amounts may not reconcile due to rounding)

The Company produces business in the U.S. and internationally. The net income deriving from assets residing in

the individual foreign countries in which the Company writes business are not identifiable in the Company’s

financial records. Based on gross written premium, the table below presents the largest country, other than the

U.S., in which the Company writes business, for the periods indicated:

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Canada gross written premiums

$

103

$

60

$

252

$

164

No other country represented more than

5

% of the Company’s revenues.

XML

Related-Party Transactions

9 Months Ended

Sep. 30, 2022

Related-Party Transactions [Abstract]

Related-Party Transactions

13. RELATED-PARTY TRANSACTIONS

Parent

Group entered into a $

300

 million long term note agreement with Everest Re as of December 17, 2019. The note

pays interest annually at a rate of

1.69

% and is scheduled to mature in December, 2028. The Company recognized

interest income related to this long term note of $

1.3

 million for the three months ended September 30, 2022 and

2021, respectively and $

3.8

 million for the nine months ended September 30, 2022 and 2021, respectively. 

Group entered into a $

200

 million long term note agreement with Everest Re as of August 5, 2021. The note pays

interest annually at a rate of

1.00

% and is scheduled to mature in August, 2030. The Company recognized interest

income related to this long term note of $

0.5

 million and $

0.3

 million for the three months ended September 30,

2022 and 2021, respectively and $

1.5

 million and $

0.3

 million for the nine months ended September 30, 2022 and

2021, respectively. 

Group entered into a $

215

 million long term note agreement with Holdings as of June 29, 2022. The note pays

interest annually at a rate of

3.11

% and is scheduled to mature in June, 2052. The Company recognized interest

income related to this long term note of $

1.7

 million for both the three and nine months ended September 30,

2022.

Group’s Board of Directors approved an amended share repurchase program authorizing Group and/or its

subsidiary Holdings to purchase Group’s common shares through open market transactions, privately negotiated

transactions or both. The most recent amendment from the Board, approved on May 22, 2020, increased the

cumulative number of shares that may be repurchased under the program to

32

 million shares.

Holdings had purchased and held

9,719,971

 Common Shares of Group, which were purchased in the open market

between February 2007 and March 2011.

In December, 2015, Holdings transferred the

9,719,971

 Common Shares of Group, which it held as other invested

assets, at fair value, valued at $

1.8

 billion, to Preferred Holdings in exchange for

1,773.214

 preferred shares of

Preferred Holdings with a $

1

 million par value and

1.75

% annual dividend rate. After the exchange, Holdings no

longer holds any shares or has any ownership interest in Group. 

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 and on the Parent shares that are

reported as net investment income in the consolidated statements of operations and comprehensive income (loss)

for the period indicated.

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Dividends received on preferred stock of affiliate

$

8

$

8

$

23

$

23

Affiliates

The Company has engaged in reinsurance transactions with Everest Reinsurance (Bermuda), Ltd. (“Bermuda Re”),

Everest Reinsurance Company (Ireland) dac (“Ireland Re”), Everest Insurance (Ireland) dac (“Ireland Insurance”),

Everest International Reinsurance Ltd. (“Everest International”), Everest Insurance Company of Canada (“Everest

Canada”), Lloyd’s Syndicate 2786 and Mt. Logan Re, which are affiliated companies primarily driven by enterprise

risk and capital management considerations under which business is ceded at market rates and terms.

The table below represents affiliated quota share reinsurance agreements ("whole account quota share") for all

new and renewal business for the indicated coverage period:

(Dollars in millions)

Single 

Percent

Assuming

Occurrence

Aggregate

Coverage Period

Ceding Company

Ceded 

Company

Type of Business

Limit

Limit 

01/01/2010-12/31/2010

Everest Re

44.0

%

Bermuda Re

property / casualty business

150

325

01/01/2011-12/31/2011

Everest Re

50.0

%

Bermuda Re

property / casualty business

150

300

01/01/2012-12/31/2014

Everest Re

50.0

%

Bermuda Re

property / casualty business

100

200

01/01/2015-12/31/2016

Everest Re

50.0

%

Bermuda Re

property / casualty business

163

325

01/01/2017-12/31/2017

Everest Re

60.0

%

Bermuda Re

property / casualty business

219

438

01/01/2010-12/31/2010

Everest Re- Canadian Branch

60.0

%

Bermuda Re

property business

350

(1)

-

01/01/2011-12/31/2011

Everest Re- Canadian Branch

60.0

%

Bermuda Re

property business

350

(1)

-

01/01/2012-12/31/2012

Everest Re- Canadian Branch

75.0

%

Bermuda Re

property / casualty business

206

(1)

413

(1)

01/01/2013-12/31/2013

Everest Re- Canadian Branch

75.0

%

Bermuda Re

property / casualty business

150

(1)

413

(1)

01/01/2014-12/31/2017

Everest Re- Canadian Branch

75.0

%

Bermuda Re

property / casualty business

263

(1)

413

(1)

01/01/2012-12/31/2017

Everest Canada

80.0

%

Everest Re- Canadian

Branch

property business

-

-

01/01/2020

Everest International Assurance

100.0

%

Bermuda Re

life business

-

-

(1)

Amounts shown are Canadian dollars.

Effective January 1, 2018, Everest Re entered into a twelve month whole account aggregate stop loss reinsurance

contract (“stop loss agreement”) with Bermuda Re. The stop loss agreement provides coverage for ultimate net

losses on applicable net earned premiums above a retention level, subject to certain other coverage limits and

conditions. The stop loss agreement was most recently renewed effective January 1, 2022. 

Everest Re entered into a catastrophe excess of loss reinsurance contract with Bermuda Re (UK Branch), effective

January 1, 2021 through December 31, 2021, subject to renewal thereafter. The contract provides Bermuda Re (UK

Branch), with up to £

100

 million of reinsurance coverage for each catastrophe occurrence above £

40

 million. 

Bermuda Re (UK Branch) paid Everest Re £

4

 million for this coverage. This contract was most recently renewed

effective January 1, 2022.

Everest Re entered into a catastrophe excess of loss reinsurance contract with Ireland Re, effective February 1,

2021 through January 31, 2022, subject to renewal thereafter. The contract provides Ireland Re with up to €

145

million of reinsurance coverage for each catastrophe occurrence above €

16

 million. Ireland Re paid Everest Re €

10

million for this coverage. This contract was most recently renewed effective February 1, 2022.

The table below represents loss portfolio transfer (“LPT”) reinsurance agreements whereby net insurance

exposures and reserves were transferred to an affiliate.

(Dollars in millions)

Effective

Transferring

Assuming

% of Business or 

Covered Period 

Date

Company 

Company

Amount of Transfer

of Transfer

10/01/2001

Everest Re (Belgium Branch)

Bermuda Re

100

%

All years

10/01/2008

Everest Re

Bermuda Re

$

747

01/01/2002-12/31/2007

12/31/2017

Everest Re

Bermuda Re

$

970

All years

On December 31, 2017, the Company entered into a LPT agreement with Bermuda Re. The LPT agreement covers

subject loss reserves of $

2.3

 billion for accident years 2017 and prior. As a result of the LPT agreement, the

Company transferred $

1.0

 billion of cash and fixed maturity securities and transferred $

970

 million of loss reserves

to Bermuda Re. As part of the LPT agreement, Bermuda Re will provide an additional $

500

 million of adverse

development coverage on the subject loss reserves. As of September 30, 2022, and December 31, 2021, the

Company has a reinsurance recoverable of $

854

 million and $

856

 million, respectively, recorded on its balance

sheet due from Bermuda Re.

The following tables summarize the significant premiums and losses ceded and assumed by the Company to

affiliated entities:

Three Months Ended

Nine Months Ended

Bermuda Re

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Ceded written premiums

$

95

$

78

$

279

$

224

Ceded earned premiums

95

77

279

222

Ceded losses and LAE

(2)

12

(1)

3

Assumed written premiums

-

5

3

5

Assumed earned premiums

-

4

5

4

Assumed losses and LAE

-

-

-

-

Three Months Ended

Nine Months Ended

Ireland Re

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Assumed written premiums

$

2

$

7

$

6

$

13

Assumed earned premiums

2

7

6

12

Assumed losses and LAE

(4)

62

(2)

62

Three Months Ended

Nine Months Ended

Ireland Insurance

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Assumed written premiums

$

3

$

4

$

7

$

6

Assumed earned premiums

2

2

6

4

Assumed losses and LAE

1

1

3

2

The following table summarizes the premiums and losses that are ceded by the Company to Mt. Logan Re

segregated accounts and assumed by the Company from Mt. Logan Re segregated accounts.

Three Months Ended

Nine Months Ended

Mt. Logan Re Segregated Accounts

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Ceded written premiums

$

60

$

98

$

122

$

226

Ceded earned premiums

51

86

122

212

Ceded losses and LAE 

82

97

142

192

XML

Income Taxes

9 Months Ended

Sep. 30, 2022

Income Taxes [Abstract]

Income Taxes

14. 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 approach for calculating its tax provision for

interim periods as prescribed by ASC 740-270, Interim Reporting. Under the estimated annual effective tax rate

approach, the estimated annual effective tax rate 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 effective tax rate.

XML

Subsequent Events

9 Months Ended

Sep. 30, 2022

Subsequent Events [Abstract]

Subsequent Events

15. SUBSEQUENT EVENTS

The Company has evaluated known recognized and non-recognized subsequent events. The Company does not

have any subsequent events to report.

XML

Investments (Tables)

9 Months Ended

Sep. 30, 2022

Investments [Abstract]

Summary Of Amortized Cost, Allowance For Credit Losses, Gross Unrealized Appreciation/(Depreciation) And Fair Value Of Fixed Maturity Securities

At September 30, 2022

Amortized

Allowances for 

Unrealized

Unrealized

Fair

(Dollars in millions)

Cost

Credit Losses

Appreciation

Depreciation

Value

Fixed maturity securities – available for sale

U.S. Treasury securities and obligations of

 U.S. government agencies and corporations 

$

602

$

-

$

-

$

(40)

$

562

Obligations of U.S. states and political

 subdivisions

519

-

1

(38)

481

Corporate securities

3,962

(29)

13

(382)

3,564

Asset-backed securities

3,801

-

1

(157)

3,645

Mortgage-backed securities

Commercial

556

-

-

(61)

495

Agency residential

1,562

-

-

(195)

1,367

Non-agency residential

3

-

-

-

3

Foreign government securities

688

-

4

(65)

626

Foreign corporate securities

1,515

(1)

4

(192)

1,326

Total fixed maturity securities - available for sale

$

13,207

$

(30)

$

23

$

(1,130)

$

12,070

(Some amounts may not reconcile due to rounding.)

At December 31, 2021

Amortized

Allowances for

Unrealized

Unrealized

Fair

(Dollars in millions)

Cost

Credit Losses

Appreciation

Depreciation

Value

Fixed maturity securities – available for sale

U.S. Treasury securities and obligations of

 U.S. government agencies and corporations 

$

657

$

-

$

9

$

(3)

$

663

Obligations of U.S. states and political

 subdivisions

559

-

29

(1)

587

Corporate securities

4,036

(19)

89

(31)

4,075

Asset-backed securities

3,464

(8)

21

(11)

3,466

Mortgage-backed securities

Commercial

586

-

21

(4)

603

Agency residential

1,255

-

16

(10)

1,261

Non-agency residential

4

-

-

-

4

Foreign government securities

677

-

22

(7)

692

Foreign corporate securities

1,494

-

34

(18)

1,510

Total fixed maturity securities - available for sale

$

12,733

$

(27)

$

241

$

(86)

$

12,860

(Some amounts may not reconcile due to rounding.)

At September 30, 2022

Amortized

Allowances for

Unrealized

Unrealized

Fair

(Dollars in millions)

Cost

Credit Loss

Appreciation

Depreciation

Value

Fixed maturity securities – held to maturity

Corporate securities

$

159

$

(2)

$

-

$

(11)

$

147

Asset-backed securities

625

(6)

1

(10)

611

Mortgage-backed securities

Commercial

6

-

-

-

6

Foreign corporate securities

28

(1)

-

(1)

26

Total fixed maturity securities - held to maturity

$

818

$

(9)

$

1

$

(21)

$

789

(Some amounts may not reconcile due to rounding.)

Summary Of Amortized Cost And Market Value Of Fixed Maturity Securities, By Contractual Maturity

At September 30, 2022

At December 31, 2021

Amortized

Fair

Amortized

Fair

(Dollars in millions)

Cost

Value

Cost

Value

Fixed maturity securities – available for sale:

 Due in one year or less

$

554

$

537

$

586

$

584

 Due after one year through five years

3,730

3,455

3,488

3,527

 Due after five years through ten years

2,034

1,752

2,260

2,310

 Due after ten years

967

815

1,088

1,106

Asset-backed securities

3,801

3,645

3,464

3,466

Mortgage-backed securities

Commercial

556

495

586

603

Agency residential

1,562

1,367

1,255

1,261

Non-agency residential

3

3

4

4

Total fixed maturity securities - available for sale

$

13,207

$

12,070

$

12,733

$

12,860

(Some amounts may not reconcile due to rounding.)

At September 30, 2022

Amortized

Fair

(Dollars in millions)

Cost

Value

Fixed maturity securities – held to maturity:

 Due after one year through five years

$

61

$

58

 Due after five years through ten years

46

41

 Due after ten years

80

74

Asset-backed securities

625

611

Mortgage-backed securities

Commercial

6

6

Total fixed maturity securities - held to maturity

$

818

$

789

(Some amounts may not reconcile due to rounding.)

Summary Of Changes In Net Unrealized Appreciation (Depreciation) For The Company's Investments

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Increase (decrease) during the period between the fair value and cost of 

 investments carried at fair value, and deferred taxes thereon:

Fixed maturity securities - short-term investments

$

(307)

$

(52)

$

(1,315)

$

(126)

Change in unrealized appreciation (depreciation), pre-tax

(307)

(52)

(1,315)

(126)

Deferred tax benefit (expense) 

65

11

276

27

Change in unrealized appreciation (depreciation), net of deferred taxes, 

 included in stockholder's equity 

$

(242)

$

(41)

$

(1,039)

$

(100)

(Some amounts may not reconcile due to rounding.)

Summary Of Aggregate Market Value And Gross Unrealized Depreciation Of Fixed Maturity And Equity Securities, By Security Type

Duration of Unrealized Loss at September 30, 2022 By Security Type

Less than 12 months

Greater than 12 months

Total

Gross

Gross

Gross

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

(Dollars in millions)

Value

Depreciation

Value

Depreciation

Value

Depreciation

Fixed maturity securities -available for sale

U.S. Treasury securities and obligations of 

 U.S. government agencies and corporations

$

395

$

(22)

$

143

$

(18)

$

538

$

(40)

Obligations of U.S. states and political subdivisions

327

(30)

25

(8)

351

(38)

Corporate securities

2,447

(260)

550

(104)

2,997

(365)

Asset-backed securities

2,718

(153)

39

(4)

2,757

(157)

Mortgage-backed securities

Commercial

489

(61)

6

(1)

495

(61)

Agency residential

1,060

(133)

306

(62)

1,365

(195)

Non-agency residential

2

-

1

-

3

-

Foreign government securities

457

(43)

116

(22)

573

(65)

Foreign corporate securities

907

(112)

314

(80)

1,222

(192)

Total 

8,802

(812)

1,499

(301)

10,302

(1,113)

Securities where an allowance for credit losses 

 was recorded

20

(17)

-

-

20

(17)

Total fixed maturity securities

$

8,822

$

(830)

$

1,499

$

(301)

$

10,322

$

(1,130)

(Some amounts may not reconcile due to rounding.)

Duration of Unrealized Loss at December 31, 2021 By Security Type

Less than 12 months

Greater than 12 months

Total

Gross

Gross

Gross

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

(Dollars in millions)

Value

Depreciation

Value

Depreciation

Value

Depreciation

Fixed maturity securities -available for sale

U.S. Treasury securities and obligations of 

 U.S. government agencies and corporations

$

267

$

(3)

$

-

$

-

$

267

$

(3)

Obligations of U.S. states and political subdivisions

51

(1)

3

-

54

(1)

Corporate securities

1,465

(25)

201

(6)

1,666

(31)

Asset-backed securities

1,891

(11)

38

-

1,929

(11)

Mortgage-backed securities

Commercial

139

(2)

35

(2)

174

(4)

Agency residential

699

(7)

168

(3)

867

(10)

Non-agency residential

1

-

-

-

2

-

Foreign government securities

200

(5)

15

(2)

215

(7)

Foreign corporate securities

677

(17)

33

(2)

710

(18)

Total fixed maturity securities

$

5,390

$

(71)

$

492

$

(15)

$

5,882

$

(86)

(Some amounts may not reconcile due to rounding.)

Summary Of Aggregate Market Value And Gross Unrealized Depreciation Of Fixed Maturity And Equity Securities, By Contractual Maturity

Duration of Unrealized Loss at September 30, 2022 By Maturity

Less than 12 months

Greater than 12 months

Total

Gross

Gross

Gross

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

(Dollars in millions)

Value

Depreciation

Value

Depreciation

Value

Depreciation

Fixed maturity securities - available for sale

Due in one year or less

$

399

$

(7)

$

40

$

(3)

$

440

$

(10)

Due in one year through five years

2,377

(184)

602

(88)

2,978

(272)

Due in five years through ten years

1,211

(182)

360

(101)

1,570

(283)

Due after ten years

546

(93)

146

(41)

692

(134)

Asset-backed securities

2,718

(153)

39

(4)

2,757

(157)

Mortgage-backed securities

1,551

(194)

313

(63)

1,864

(256)

Total 

8,802

(812)

1,499

(301)

10,302

(1,113)

Securities where an allowance for credit losses 

 was recorded

20

(17)

-

-

20

(17)

Total fixed maturity securities

$

8,822

$

(830)

$

1,499

$

(301)

$

10,322

$

(1,130)

(Some amounts may not reconcile due to rounding.)

Duration of Unrealized Loss at December 31, 2021 By Maturity

Less than 12 months

Greater than 12 months

Total

Gross

Gross

Gross

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

(Dollars in millions)

Value

Depreciatio

n

Value

Depreciatio

n

Value

Depreciatio

n

Fixed maturity securities - available for sale

Due in one year or less

$

81

$

(2)

$

36

$

(4)

$

117

$

(6)

Due in one year through five years

1,209

(19)

154

(3)

1,364

(22)

Due in five years through ten years

853

(21)

34

(2)

887

(23)

Due after ten years

517

(10)

27

(1)

543

(11)

Asset-backed securities

1,891

(11)

38

-

1,929

(11)

Mortgage-backed securities

839

(9)

203

(5)

1,042

(14)

Total fixed maturity securities

$

5,390

$

(71)

$

492

$

(15)

$

5,882

$

(86)

(Some amounts may not reconcile due to rounding.)

Summary Of Components Of Net Investment Income

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Fixed maturities

$

129

$

83

$

339

$

260

Equity securities

7

4

15

10

Short-term investments and cash

4

-

4

-

Other invested assets

Limited partnerships

(25)

82

63

260

Dividends from preferred shares of affiliate

8

8

23

23

Other 

11

31

37

63

Gross investment income before adjustments

132

208

482

617

Funds held interest income (expense)

1

1

5

7

Interest income from Parent

3

2

7

4

Gross investment income 

137

210

494

629

Investment expenses

(13)

(13)

(37)

(36)

Net investment income

$

124

$

197

$

457

$

593

(Some amounts may not reconcile due to rounding.)

Summary Of Components Of Net Realized Capital Gains (Losses)

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Fixed maturity securities:

Allowances for credit losses

$

(12)

$

(7)

$

(12)

$

(30)

Net realized gains (losses) from dispositions

(45)

3

(60)

11

Equity securities, fair value:

Net realized gains (losses) from dispositions

57

-

19

6

Gains (losses) from fair value adjustments

(134)

(4)

(451)

137

Other invested assets

6

2

10

6

Other invested assets, fair value:

Gains (losses) from fair value adjustments

(111)

(44)

(350)

137

Short-term investment gains (losses)

1

-

1

-

Total net gains (losses) on investments

$

(237)

$

(51)

$

(842)

$

267

(Some amounts may not reconcile due to rounding.)

Roll Forward of Allowance for Credit Losses – Fixed maturities

Three Months Ended September 30, 2022

Nine Months Ended September 30, 2022

Asset Backed

Securities

Foreign

Corporate

Securities

Asset Backed

Securities

Foreign

Corporate

Securities

Corporate

Securities

Corporate

Securities

Total

Total

(Dollars in millions)

Beginning Balance

$

(26)

$

-

$

(2)

$

(28)

$

(19)

$

(8)

$

-

$

(27)

Credit losses on securities where credit

losses were not previously recorded

(2)

(6)

(1)

(9)

(9)

(6)

(2)

(17)

Increases in allowance on previously

impaired securities

(3)

-

-

(3)

(4)

-

-

(4)

Decreases in allowance on previously 

impaired securities

-

-

-

-

-

-

-

-

Reduction in allowance due to disposals

-

-

-

-

1

8

1

9

Balance as of September 30, 2022

$

(31)

$

(6)

$

(2)

$

(39)

$

(31)

$

(6)

$

(2)

$

(39)

(Some amounts may not reconcile due to rounding.)

Roll Forward of Allowance for Credit Losses – Fixed maturities

Three Months Ended September 30, 2021

Nine Months Ended September 30, 2021

Asset

Asset

Corporate

Backed

Corporate

Backed

Securities

Securities

Total

Securities

Securities

Total

(Dollars in millions)

Beginning Balance

$

(18)

$

(5)

$

(24)

$

(1)

$

-

$

(2)

Credit losses on securities where credit

losses were not previously recorded

(5)

-

(5)

(21)

(5)

(26)

Increases in allowance on previously

impaired securities

(1)

(3)

(4)

(2)

(3)

(5)

Decreases in allowance on previously 

impaired securities

-

-

-

-

-

-

Reduction in allowance due to disposals

1

-

1

2

-

2

Balance as of September 30, 2021

$

(23)

$

(8)

$

(31)

$

(23)

$

(8)

$

(31)

(Some amounts may not reconcile due to rounding.)

Summary Of Gross Gains (Losses) From Sales Of Fixed Maturity And Equity Securities

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Proceeds from sales of fixed maturity securities, available for sale

$

301

$

152

$

812

$

394

Gross gains from dispositions

1

9

7

24

Gross losses from dispositions

(46)

(6)

(67)

(13)

Proceeds from sales of equity securities

$

591

$

104

$

1,016

$

450

Gross gains from dispositions

59

3

67

18

Gross losses from dispositions

(2)

(3)

(48)

(11)

(Some amounts may not reconcile due to rounding.)

XML

Reserves For Losses, LAE And Future Policy Benefit Reserve (Tables)

9 Months Ended

Sep. 30, 2022

Reserves For Losses, LAE And Future Policy Benefit Reserve [Abstract]

Summary Of Activity In The Reserve For Losses And LAE

Nine Months Ended September 30,

(Dollars in millions)

2022

2021

Gross reserves beginning of period

$

13,121

$

11,578

Less reinsurance recoverables on unpaid losses

(3,651)

(3,951)

Net reserves beginning of period

9,470

7,627

Incurred related to:

Current year

4,606

4,106

Prior years

18

(4)

Total incurred losses and LAE

4,624

4,103

Paid related to:

Current year 

1,502

1,118

Prior years

1,303

1,203

Total paid losses and LAE

2,805

2,321

Foreign exchange/translation adjustment 

(70)

(20)

Net reserves end of period

11,221

9,389

Plus reinsurance recoverables on unpaid losses

3,628

3,839

Gross reserves end of period

$

14,849

$

13,228

(Some amounts may not reconcile due to rounding.)

XML

Fair Value (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value [Abstract]

Fair Value Measurement Levels For All Assets, Recorded At Fair And Market Value

Fair Value Measurement Using:

Quoted Prices

in Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

Assets

Inputs

Inputs

(Dollars in millions)

September 30, 2022

(Level 1)

(Level 2)

(Level 3)

Assets:

Fixed maturities, available for sale

U.S. Treasury securities and obligations of

 U.S. government agencies and corporations

$

562

$

-

$

562

$

-

Obligations of U.S. states and political subdivisions

481

-

481

-

Corporate securities

3,564

-

2,845

719

Asset-backed securities

3,645

-

2,752

893

Mortgage-backed securities

Commercial

495

-

495

-

Agency residential

1,367

-

1,367

-

Non-agency residential

3

-

3

-

Foreign government securities

626

-

626

-

Foreign corporate securities

1,326

-

1,310

16

Total fixed maturities, available for sale

12,070

-

10,442

1,628

Equity securities, fair value

1,258

1,212

46

-

Other invested assets, fair value

1,680

-

-

1,680

(Some amounts may not reconcile due to rounding.)

Fair Value Measurement Using:

Quoted Prices

in Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

Assets

Inputs

Inputs

(Dollars in millions)

December 31, 2021

(Level 1)

(Level 2)

(Level 3)

Assets:

Fixed maturities, available for sale

U.S. Treasury securities and obligations of

 U.S. government agencies and corporations

$

663

$

-

$

663

$

-

Obligations of U.S. states and political subdivisions

587

-

587

-

Corporate securities

4,075

-

3,345

730

Asset-backed securities

3,466

-

2,215

1,251

Mortgage-backed securities

Commercial

603

-

603

-

Agency residential

1,261

-

1,261

-

Non-agency residential

4

-

4

-

Foreign government securities

692

-

692

-

Foreign corporate securities

1,510

-

1,494

16

Total fixed maturities, available for sale

12,860

-

10,863

1,997

Equity securities, fair value

1,758

1,722

36

-

Other invested assets, fair value

2,031

-

-

2,031

(Some amounts may not reconcile due to rounding.)

Activity Under Level 3, Fair Value Measurements Using Significant Unobservable Inputs By Asset Type

Total Fixed Maturities, Available for Sale

Three Months Ended September 30, 2022

Nine Months Ended September 30, 2022

Corporate

Asset Backed

Foreign

Corporate

Asset Backed

Foreign

(Dollars in millions)

Securities

Securities

CMBS

Corporate

Total

Securities

Securities

CMBS

Corporate

Total

Beginning balance fixed maturities

$

862

$

1,255

$

6

$

40

$

2,163

$

730

$

1,251

$

-

$

16

$

1,997

Total gains or (losses) (realized/unrealized)

Included in earnings

(3)

-

-

-

(3)

(6)

-

-

-

(6)

Included in other comprehensive

 income (loss)

(6)

65

-

-

59

(13)

(11)

-

(4)

(28)

Purchases, issuances and settlements

27

159

-

-

186

42

387

6

8

443

Transfers in (out) of Level 3 and reclassification of

securities in/(out) investment categories 

(163)

(587)

(6)

(24)

(779)

(35)

(735)

(6)

(4)

(779)

Ending balance

$

719

$

893

$

-

$

16

$

1,628

$

719

$

893

$

-

$

16

$

1,628

The amount of total gains or losses for the

 period included in earnings (or changes in

 net assets) attributable to the change in

 unrealized gains or losses relating to

 assets still held at the reporting date

$

(3)

$

-

$

-

$

-

$

(3)

$

(8)

$

8

$

-

$

-

$

-

(Some amounts may not reconcile due to rounding.)

Total Fixed Maturities, Available for Sale

Three Months Ended September 30, 2021

Nine Months Ended September 30, 2021

Corporate

Asset Backed

Foreign

Corporate

Asset Backed

Foreign

(Dollars in millions)

Securities

Securities

Corporate

Total

Securities

Securities

Corporate

Total

Beginning balance fixed maturities

$

635

$

815

$

5

$

1,455

$

631

$

623

$

6

$

1,260

Total gains or (losses) (realized/unrealized)

Included in earnings

3

(3)

-

-

(12)

(7)

-

(19)

Included in other comprehensive income (loss)

(1)

-

-

(2)

6

4

-

10

Purchases, issuances and settlements

87

192

-

279

99

384

(1)

482

Transfers in (out) of Level 3 and reclassification of

securities in/(out) investment categories 

-

-

-

-

-

-

-

-

Ending balance

$

723

$

1,004

$

5

$

1,732

$

723

$

1,004

$

5

$

1,732

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

$

(3)

$

-

$

(2)

$

(17)

$

(8)

$

-

$

(24)

(Some amounts may not reconcile due to rounding.)

XML

Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2022

Comprehensive Income (Loss) [Abstract]

Components Of Comprehensive Income (Loss) In The Consolidated Statements Of Operations

Three Months Ended

September 30, 2022

Nine Months Ended

September 30, 2022

(Dollars in millions)

Before Tax

Tax Effect

Net of Tax

Before Tax

Tax Effect

Net of Tax

Unrealized appreciation (depreciation) ("URA(D)") 

 on securities - non-credit related

$

(357)

75

$

(282)

$

(1,376)

288

$

(1,087)

Reclassification of net realized losses (gains) 

 included in net income (loss)

50

(11)

40

61

(13)

48

Foreign currency translation adjustments

(37)

8

(29)

(52)

11

(41)

Reclassification of amortization of net gain (loss) 

 included in net income (loss)

-

-

-

3

(1)

2

Total other comprehensive income (loss)

$

(343)

$

72

$

(271)

$

(1,364)

$

285

$

(1,078)

(Some amounts may not reconcile due to rounding)

Three Months Ended

September 30, 2021

Nine Months Ended

September 30, 2021

(Dollars in millions)

Before Tax

Tax Effect

Net of Tax

Before Tax

Tax Effect

Net of Tax

Unrealized appreciation (depreciation) ("URA(D)") 

 on securities - non-credit related

$

(55)

12

$

(43)

$

(139)

29

$

(110)

Reclassification of net realized losses (gains) 

 included in net income (loss)

3

(1)

2

13

(3)

10

Foreign currency translation adjustments

(26)

5

(21)

(6)

1

(5)

Reclassification of amortization of net gain (loss) 

 included in net income (loss)

2

-

2

7

(2)

6

Total other comprehensive income (loss)

$

(77)

$

16

$

(61)

$

(125)

$

26

$

(99)

(Some amounts may not reconcile due to rounding)

Reclassification From Accumulated Other Comprehensive Income

Three Months Ended

Nine Months Ended

Affected line item within the

September 30,

September 30,

statements of operations and 

AOCI component

2022

2021

2022

2021

comprehensive income (loss)

(Dollars in millions)

URA(D) on securities

$

50

$

3

$

61

$

13

Other net gains (losses) on investments

(11)

(1)

(13)

(3)

Income tax expense (benefit)

$

40

$

2

$

48

$

10

Net income (loss)

Benefit plan net gain (loss)

$

-

$

2

$

3

$

7

Other underwriting expenses

-

-

(1)

(2)

Income tax expense (benefit)

$

-

$

2

$

2

$

6

Net income (loss)

(Some amounts may not reconcile due to rounding)

Components Of Accumulated Other Comprehensive Income (Loss), Net Of Tax, In The Consolidated Balance Sheets

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Beginning balance of URA (D) on securities

$

(675)

$

255

$

122

$

313

Current period change in URA (D) of investments - non-credit related

(242)

(41)

(1,039)

(100)

Ending balance of URA (D) on securities

(917)

213

(917)

213

Beginning balance of foreign currency translation adjustments

8

45

20

29

Current period change in foreign currency translation adjustments

(29)

(21)

(41)

(5)

Ending balance of foreign currency translation adjustments 

(21)

24

(21)

24

Beginning balance of benefit plan net gain (loss)

(50)

(70)

(50)

(74)

Current period change in benefit plan net gain (loss)

-

2

2

6

Ending balance of benefit plan net gain (loss)

(49)

(68)

(49)

(68)

Ending balance of accumulated other comprehensive income (loss)

$

(987)

$

169

$

(987)

$

169

(Some amounts may not reconcile due to rounding.)

XML

Collateralized Reinsurance And Trust Agreements (Tables)

9 Months Ended

Sep. 30, 2022

Collateralized Reinsurance And Trust Agreements [Abstract]

Summary Of Collateralized Reinsurance Agreements

(Dollars in millions)

Class

Description

Effective Date

Expiration Date

Limit

Coverage

Basis

Series 2018-1 Class A-2

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/30/2018

5/5/2023

$

63

Aggregate

Series 2018-1 Class B-2

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/30/2018

5/5/2023

200

Aggregate

Series 2019-1 Class A-1

US, Canada, Puerto Rico – Named Storm and Earthquake Events

12/12/2019

12/19/2023

150

Occurrence

Series 2019-1 Class B-1

US, Canada, Puerto Rico – Named Storm and Earthquake Events

12/12/2019

12/19/2023

275

Aggregate

Series 2019-1 Class A-2

US, Canada, Puerto Rico – Named Storm and Earthquake Events

12/12/2019

12/19/2024

150

Occurrence

Series 2019-1 Class B-2

US, Canada, Puerto Rico – Named Storm and Earthquake Events

12/12/2019

12/19/2024

275

Aggregate

Series 2021-1 Class A-1

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/8/2021

4/21/2025

150

Occurrence

Series 2021-1 Class B-1

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/8/2021

4/21/2025

85

Aggregate

Series 2021-1 Class C-1

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/8/2021

4/21/2025

85

Aggregate

Series 2021-1 Class A-2

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/8/2021

4/20/2026

150

Occurrence

Series 2021-1 Class B-2

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/8/2021

4/20/2026

90

Aggregate

Series 2021-1 Class C-2

US, Canada, Puerto Rico – Named Storm and Earthquake Events

4/8/2021

4/20/2026

90

Aggregate

Series 2022-1 Class A

US, Canada, Puerto Rico – Named Storm and Earthquake Events

6/22/2022

6/22/2025

300

Aggregate

Total available limit as of September 30, 2022

$

2,063

Schedule Of Proceeds From Issuance Of Notes Held In Reinsurance Trusts

(Dollars in millions)

Note Series

Issue Date

Maturity Date

Amount

Series 2018-1 Class A-2

4/30/2018

5/5/2023

$

63

Series 2018-1 Class B-2

4/30/2018

5/5/2023

200

Series 2019-1 Class A-1

12/12/2019

12/19/2023

150

Series 2019-1 Class B-1

12/12/2019

12/19/2023

275

Series 2019-1 Class A-2

12/12/2019

12/19/2024

150

Series 2019-1 Class B-2

12/12/2019

12/19/2024

275

Series 2021-1 Class A-1

4/8/2021

4/21/2025

150

Series 2021-1 Class B-1

4/8/2021

4/21/2025

85

Series 2021-1 Class C-1

4/8/2021

4/21/2025

85

Series 2021-1 Class A-2

4/8/2021

4/20/2026

150

Series 2021-1 Class B-2

4/8/2021

4/20/2026

90

Series 2021-1 Class C-2

4/8/2021

4/20/2026

90

Series 2022-1 Class A

6/22/2022

6/22/2025

300

$

2,063

XML

Senior Notes (Tables)

9 Months Ended

Sep. 30, 2022

Senior Notes [Abstract]

Schedule Of Outstanding Senior Notes

September 30, 2022

December 31, 2021

Consolidated

Consolidated

Principal 

Balance Sheet

Fair

Balance Sheet

Fair

(Dollars in millions)

Date Issued

Date Due

Amounts

Amount

Value

Amount

Value

4.868

% Senior notes

06/05/2014

06/01/2044

400

$

397

$

339

$

397

$

504

3.5

% Senior notes

10/07/2020

10/15/2050

1,000

980

669

980

1,055

3.125

% Senior notes

10/04/2021

10/15/2052

1,000

969

627

968

983

2,400

$

2,347

$

1,635

$

2,346

$

2,542

Schedule Of Interest Expense Incurred In Connection With Senior Notes

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Interest expense incurred

4.868

% Senior notes

$

5

$

5

$

15

$

15

Interest expense incurred

3.5

% Senior notes

9

9

26

26

Interest expense incurred

3.125

% Senior notes

8

-

24

-

$

22

$

14

$

65

$

41

XML

Long Term Subordinated Notes (Tables)

9 Months Ended

Sep. 30, 2022

Long Term Subordinated Notes [Abstract]

Schedule Of Outstanding Fixed To Floating Rate Long Term Subordinated Notes

September 30, 2022

December 31, 2021

Original

Consolidated

Consolidated

Principal

Maturity Date

Balance

Fair

Balance

Fair

(Dollars in millions)

Date Issued

Amount

Scheduled

Final

Sheet Amount

Value

Sheet Amount

Value

Long term subordinated notes

04/26/2007

$

400

05/15/2037

05/01/2067

$

218

$

179

$

224

$

216

Schedule Of Interest Expense Incurred In Connection With Long Term Subordinated Notes

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Interest expense incurred

$

3

$

1

$

6

$

4

XML

Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Schedule Of Underwriting Results For Operating Segments

Three Months Ended September 30, 2022

Nine Months Ended September 30, 2022

(Dollars in millions)

Reinsurance

Insurance

Total 

Reinsurance

Insurance

Total 

Gross written premiums

$

1,681

$

905

$

2,585

$

4,454

$

2,773

$

7,227

Net written premiums

1,506

722

2,228

3,936

2,083

6,019

Premiums earned

$

1,398

$

706

$

2,104

$

3,902

$

1,985

$

5,887

Incurred losses and LAE

1,531

564

2,094

3,227

1,398

4,624

Commission and brokerage

337

85

423

985

231

1,216

Other underwriting expenses

33

94

127

97

269

365

Underwriting gain (loss)

$

(504)

$

(37)

$

(541)

$

(406)

$

87

$

(319)

Net investment income

124

457

Net gains (losses) on investments

(237)

(842)

Corporate expense

(5)

(17)

Interest, fee and bond issue cost amortization expense

(26)

(74)

Other income (expense) 

7

(2)

Income (loss) before taxes

$

(677)

$

(796)

(Some amounts may not reconcile due to rounding)

Three Months Ended September 30, 2021

Nine Months Ended September 30, 2021

(Dollars in millions)

Reinsurance

Insurance

Total 

Reinsurance

Insurance

Total 

Gross written premiums

$

1,693

$

831

$

2,524

$

4,552

$

2,422

$

6,974

Net written premiums

1,461

608

2,069

3,961

1,802

5,763

Premiums earned

$

1,280

$

571

$

1,851

$

3,690

$

1,625

$

5,315

Incurred losses and LAE

1,208

445

1,653

2,917

1,185

4,103

Commission and brokerage

320

69

389

935

190

1,126

Other underwriting expenses

32

77

110

101

228

329

Underwriting gain (loss)

$

(279)

$

(21)

$

(300)

$

(264)

$

22

$

(243)

Net investment income

197

593

Net gains (losses) on investments

(51)

267

Corporate expense

(11)

(23)

Interest, fee and bond issue cost amortization expense

(16)

(47)

Other income (expense) 

10

12

Income (loss) before taxes

$

(171)

$

560

(Some amounts may not reconcile due to rounding)

Schedule Of Gross Written Premium Derived From Largest Non-U.S. Market

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Canada gross written premiums

$

103

$

60

$

252

$

164

XML

Related-Party Transactions (Tables)

9 Months Ended

Sep. 30, 2022

Related-Party Transactions [Abstract]

Dividends Received On Preferred Shares

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Dividends received on preferred stock of affiliate

$

8

$

8

$

23

$

23

Affiliated Quota Share Reinsurance Agreements For All New And Renewal Business For The Indicated Coverage Period

(Dollars in millions)

Single 

Percent

Assuming

Occurrence

Aggregate

Coverage Period

Ceding Company

Ceded 

Company

Type of Business

Limit

Limit 

01/01/2010-12/31/2010

Everest Re

44.0

%

Bermuda Re

property / casualty business

150

325

01/01/2011-12/31/2011

Everest Re

50.0

%

Bermuda Re

property / casualty business

150

300

01/01/2012-12/31/2014

Everest Re

50.0

%

Bermuda Re

property / casualty business

100

200

01/01/2015-12/31/2016

Everest Re

50.0

%

Bermuda Re

property / casualty business

163

325

01/01/2017-12/31/2017

Everest Re

60.0

%

Bermuda Re

property / casualty business

219

438

01/01/2010-12/31/2010

Everest Re- Canadian Branch

60.0

%

Bermuda Re

property business

350

(1)

-

01/01/2011-12/31/2011

Everest Re- Canadian Branch

60.0

%

Bermuda Re

property business

350

(1)

-

01/01/2012-12/31/2012

Everest Re- Canadian Branch

75.0

%

Bermuda Re

property / casualty business

206

(1)

413

(1)

01/01/2013-12/31/2013

Everest Re- Canadian Branch

75.0

%

Bermuda Re

property / casualty business

150

(1)

413

(1)

01/01/2014-12/31/2017

Everest Re- Canadian Branch

75.0

%

Bermuda Re

property / casualty business

263

(1)

413

(1)

01/01/2012-12/31/2017

Everest Canada

80.0

%

Everest Re- Canadian

Branch

property business

-

-

01/01/2020

Everest International Assurance

100.0

%

Bermuda Re

life business

-

-

(1)

Amounts shown are Canadian dollars.

Schedule Of Loss Portfolio Transfer Reinsurance Agreements, Net Insurance Exposures And Reserves Were Transferred To An Affiliate

(Dollars in millions)

Effective

Transferring

Assuming

% of Business or 

Covered Period 

Date

Company 

Company

Amount of Transfer

of Transfer

10/01/2001

Everest Re (Belgium Branch)

Bermuda Re

100

%

All years

10/01/2008

Everest Re

Bermuda Re

$

747

01/01/2002-12/31/2007

12/31/2017

Everest Re

Bermuda Re

$

970

All years

Premiums And Losses Ceded By The Company To Affiliate

Three Months Ended

Nine Months Ended

Bermuda Re

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Ceded written premiums

$

95

$

78

$

279

$

224

Ceded earned premiums

95

77

279

222

Ceded losses and LAE

(2)

12

(1)

3

Assumed written premiums

-

5

3

5

Assumed earned premiums

-

4

5

4

Assumed losses and LAE

-

-

-

-

Three Months Ended

Nine Months Ended

Ireland Re

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Assumed written premiums

$

2

$

7

$

6

$

13

Assumed earned premiums

2

7

6

12

Assumed losses and LAE

(4)

62

(2)

62

Three Months Ended

Nine Months Ended

Ireland Insurance

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Assumed written premiums

$

3

$

4

$

7

$

6

Assumed earned premiums

2

2

6

4

Assumed losses and LAE

1

1

3

2

Three Months Ended

Nine Months Ended

Mt. Logan Re Segregated Accounts

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Ceded written premiums

$

60

$

98

$

122

$

226

Ceded earned premiums

51

86

122

212

Ceded losses and LAE 

82

97

142

192

XML

Investments (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Schedule of Available-for-sale Securities [Line Items]
Reclassification of specific investments from fixed maturity securities, available for sale at fair value to fixed maturity securities, held to maturity at amortized cost net of credit allowances	$ 722.0	$ 722.0
Unrealized loss from transfer	(53.0)
Additional contractual commitments	1,100.0	$ 1,100.0
Contractual commitments, investment period expiration date		2026
Fair Value	12,070.0	$ 12,070.0		$ 12,860.0
Maximum exposure to loss	1,800.0	1,800.0		1,700.0
Commitments to fund investments	766.0	766.0
Fixed maturities - held to maturity, at amortized cost	818.0	818.0
Fixed maturities - held to maturity, at amortized cost, net of credit allowances, fair value	789.0	789.0
Fixed maturities - held to maturity, gross unrealized appreciation	1.0	1.0
Fixed maturities - held to maturity, gross unrealized depreciation	21.0	21.0
Fixed maturities - held to maturity, at amortized cost, credit allowances	9.0	9.0
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value of investments in unrealized loss position	10,322.0	10,322.0		5,882.0
Gross unrealized losses on investments in unrealized loss position	1,130.0	1,130.0		86.0
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Market Value	8,822.0	8,822.0		5,390.0
Fixed maturity securities, duration of unrealized loss, less than 12 months, gross unrealized depreciation	830.0	830.0		71.0
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation	301.0	$ 301.0		$ 15.0
Fixed Maturity Securities [Member] | Sales Revenue Net [Member] | Issuer [Member] | Issuer with the second largest unrealized loss position [Member]
Schedule of Available-for-sale Securities [Line Items]
Percentage threshold of unrealized losses not exceeded by any one single issuer				0.40%
Fixed Maturity Securities [Member] | U S Government Debt Securities [Member] | Sales Revenue Net [Member] | Issuer [Member]
Schedule of Available-for-sale Securities [Line Items]
Percentage threshold of unrealized losses not exceeded by any one single issuer		4.50%		2.10%
Recorded An Allowance For Credit Losses [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value of investments in unrealized loss position	20.0	$ 20.0		$ 16.0
Gross unrealized losses on investments in unrealized loss position	17.0	17.0		0.4
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Market Value	20.0	20.0
Fixed maturity securities, duration of unrealized loss, less than 12 months, gross unrealized depreciation	17.0	17.0
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation
Asset Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value of investments in unrealized loss position	2,757.0	2,757.0		1,929.0
Gross unrealized losses on investments in unrealized loss position	157.0	157.0		11.0
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Market Value	2,718.0	2,718.0		1,891.0
Fixed maturity securities, duration of unrealized loss, less than 12 months, gross unrealized depreciation	153.0	153.0		11.0
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation	4.0	4.0
Fair Value	3,645.0	3,645.0		3,466.0
Fixed maturities - held to maturity, at amortized cost	625.0	625.0
Fixed maturities - held to maturity, at amortized cost, net of credit allowances, fair value	611.0	611.0
Fixed maturities - held to maturity, gross unrealized appreciation	1.0	1.0
Fixed maturities - held to maturity, gross unrealized depreciation	10.0	10.0
Fixed maturities - held to maturity, at amortized cost, credit allowances	6.0	6.0
Corporate Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value of investments in unrealized loss position	2,997.0	2,997.0		1,666.0
Gross unrealized losses on investments in unrealized loss position	365.0	365.0		31.0
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Market Value	2,447.0	2,447.0		1,465.0
Fixed maturity securities, duration of unrealized loss, less than 12 months, gross unrealized depreciation	260.0	260.0		25.0
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation	104.0	104.0		6.0
Fair Value	3,564.0	3,564.0		4,075.0
Fixed maturities - held to maturity, at amortized cost	159.0	159.0
Fixed maturities - held to maturity, at amortized cost, net of credit allowances, fair value	147.0	147.0
Fixed maturities - held to maturity, gross unrealized appreciation
Fixed maturities - held to maturity, gross unrealized depreciation	11.0	11.0
Fixed maturities - held to maturity, at amortized cost, credit allowances	2.0	2.0
External Credit Rating Investment Grade [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, duration of unrealized loss, less than 12 months, gross unrealized depreciation	723.0	723.0		62.0
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation	273.0	273.0		$ 12.0
Private Placement Liquidity Sweep [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value	$ 241.0	$ 241.0

XML

Investments (Summary Of Amortized Cost, Allowance For Credit Losses, Gross Unrealized Appreciation/(Depreciation) And Fair Value Of Fixed Maturity Securities) (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Fixed maturity securities - available for sale:
Amortized Cost	$ 13,207	$ 12,733
Allowances for credit loss	(30)	(27)
Unrealized Appreciation	23	241
Unrealized Depreciation	(1,130)	(86)
Fair Value	12,070	12,860
Held To Maturity Securities Debt Maturities [Abstract]
Amortized Cost	818
Allowances for credit loss	(9)
Unrealized Appreciation	1
Unrealized Depreciation	(21)
Fair Value	789
U.S. Treasury Securities And Obligations Of U.S. Government Agencies And Corporations [Member]
Fixed maturity securities - available for sale:
Amortized Cost	602	657
Allowances for credit loss
Unrealized Appreciation		9
Unrealized Depreciation	(40)	(3)
Fair Value	562	663
Obligation of U.S. States and Political Subdivisions [Member]
Fixed maturity securities - available for sale:
Amortized Cost	519	559
Allowances for credit loss
Unrealized Appreciation	1	29
Unrealized Depreciation	(38)	(1)
Fair Value	481	587
Corporate Securities [Member]
Fixed maturity securities - available for sale:
Amortized Cost	3,962	4,036
Allowances for credit loss	(29)	(19)
Unrealized Appreciation	13	89
Unrealized Depreciation	(382)	(31)
Fair Value	3,564	4,075
Held To Maturity Securities Debt Maturities [Abstract]
Amortized Cost	159
Allowances for credit loss	(2)
Unrealized Appreciation
Unrealized Depreciation	(11)
Fair Value	147
Asset-backed Securities [Member]
Fixed maturity securities - available for sale:
Amortized Cost	3,801	3,464
Allowances for credit loss		(8)
Unrealized Appreciation	1	21
Unrealized Depreciation	(157)	(11)
Fair Value	3,645	3,466
Held To Maturity Securities Debt Maturities [Abstract]
Amortized Cost	625
Allowances for credit loss	(6)
Unrealized Appreciation	1
Unrealized Depreciation	(10)
Fair Value	611
Commercial [Member]
Fixed maturity securities - available for sale:
Amortized Cost	556	586
Allowances for credit loss
Unrealized Appreciation		21
Unrealized Depreciation	(61)	(4)
Fair Value	495	603
Held To Maturity Securities Debt Maturities [Abstract]
Amortized Cost	6
Allowances for credit loss
Unrealized Appreciation
Unrealized Depreciation
Fair Value	6
Agency Residential [Member]
Fixed maturity securities - available for sale:
Amortized Cost	1,562	1,255
Allowances for credit loss
Unrealized Appreciation		16
Unrealized Depreciation	(195)	(10)
Fair Value	1,367	1,261
Non-agency Residential [Member]
Fixed maturity securities - available for sale:
Amortized Cost	3	4
Allowances for credit loss
Unrealized Appreciation
Unrealized Depreciation
Fair Value	3	4
Foreign Government Securities [Member]
Fixed maturity securities - available for sale:
Amortized Cost	688	677
Allowances for credit loss
Unrealized Appreciation	4	22
Unrealized Depreciation	(65)	(7)
Fair Value	626	692
Foreign Corporate Securities [Member]
Fixed maturity securities - available for sale:
Amortized Cost	1,515	1,494
Allowances for credit loss	(1)
Unrealized Appreciation	4	34
Unrealized Depreciation	(192)	(18)
Fair Value	1,326	$ 1,510
Held To Maturity Securities Debt Maturities [Abstract]
Amortized Cost	28
Allowances for credit loss	(1)
Unrealized Appreciation
Unrealized Depreciation	(1)
Fair Value	$ 26

XML

Investments (Summary Of Amortized Cost And Market Value Of Fixed Maturity Securities, By Contractual Maturity) (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Fixed maturity securities - available for sale:
Amortized Cost	$ 13,207	$ 12,733
Fair Value	12,070	12,860
Fixed maturity securities - held to maturity:
Due after one year through five years, Amortized Cost	61
Due after five years through ten years, Amortized Cost	46
Due after ten years, Amortized Cost	80
Amortized Cost	818
Due after one year through five years, Fair Value	58
Due after five years through ten years, Fair Value	41
Due after ten years, Fair Value	74
Fair Value	789
Fixed Maturity Securities [Member]
Fixed maturity securities - available for sale:
Due in one year or less, Amortized Cost	554	586
Due after one year through five years, Amortized Cost	3,730	3,488
Due after five years through ten years, Amortized Cost	2,034	2,260
Due after ten years, Amortized Cost	967	1,088
Due in one year or less, Fair Value	537	584
Due after one year through five years, Fair Value	3,455	3,527
Due after five years through ten years, Fair Value	1,752	2,310
Due after ten years, Fair Value	815	1,106
Asset-backed Securities [Member]
Fixed maturity securities - available for sale:
Amortized Cost	3,801	3,464
Fair Value	3,645	3,466
Fixed maturity securities - held to maturity:
Amortized Cost	625
Fair Value	611
Commercial [Member]
Fixed maturity securities - available for sale:
Amortized Cost	556	586
Fair Value	495	603
Fixed maturity securities - held to maturity:
Amortized Cost	6
Fair Value	6
Agency Residential [Member]
Fixed maturity securities - available for sale:
Amortized Cost	1,562	1,255
Fair Value	1,367	1,261
Non-agency Residential [Member]
Fixed maturity securities - available for sale:
Amortized Cost	3	4
Fair Value	$ 3	$ 4

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Investments (Summary Of Changes In Net Unrealized Appreciation (Depreciation) For The Company's Investments) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Schedule of Available-for-sale Securities [Line Items]
Change in unrealized appreciation (depreciation), pre-tax	$ (307)	$ (52)	$ (1,315)	$ (126)
Deferred tax benefit (expense)	65	11	276	27
Total URA(D) on securities arising during the period	(242)	(41)	(1,039)	(100)
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Change in unrealized appreciation (depreciation), pre-tax	$ (307)	$ (52)	$ (1,315)	$ (126)

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Investments (Summary Of Aggregate Market Value And Gross Unrealized Depreciation Of Fixed Maturity And Equity Securities, By Security Type) (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Market Value	$ 8,822.0	$ 5,390.0
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Gross Unrealized Depreciation	(830.0)	(71.0)
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Market Value	1,499.0	492.0
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Gross Unrealized Depreciation	(301.0)	(15.0)
Fixed maturity securities, Duration of Unrealized Loss, Total, Fair Value	10,322.0	5,882.0
Fixed maturity securities, Duration of Unrealized Loss, Total, Gross Unrealized Depreciation	(1,130.0)	(86.0)
No Recorded Allowance for Credit Losses [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Market Value	8,802.0
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Gross Unrealized Depreciation	(812.0)
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Market Value	1,499.0
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Gross Unrealized Depreciation	(301.0)
Fixed maturity securities, Duration of Unrealized Loss, Total, Fair Value	10,302.0
Fixed maturity securities, Duration of Unrealized Loss, Total, Gross Unrealized Depreciation	(1,113.0)
U.S. Treasury Securities And Obligations Of U.S. Government Agencies And Corporations [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Market Value	395.0	267.0
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Gross Unrealized Depreciation	(22.0)	(3.0)
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Market Value	143.0
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Gross Unrealized Depreciation	(18.0)
Fixed maturity securities, Duration of Unrealized Loss, Total, Fair Value	538.0	267.0
Fixed maturity securities, Duration of Unrealized Loss, Total, Gross Unrealized Depreciation	(40.0)	(3.0)
Obligation of U.S. States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Market Value	327.0	51.0
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Gross Unrealized Depreciation	(30.0)	(1.0)
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Market Value	25.0	3.0
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Gross Unrealized Depreciation	(8.0)
Fixed maturity securities, Duration of Unrealized Loss, Total, Fair Value	351.0	54.0
Fixed maturity securities, Duration of Unrealized Loss, Total, Gross Unrealized Depreciation	(38.0)	(1.0)
Corporate Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Market Value	2,447.0	1,465.0
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Gross Unrealized Depreciation	(260.0)	(25.0)
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Market Value	550.0	201.0
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Gross Unrealized Depreciation	(104.0)	(6.0)
Fixed maturity securities, Duration of Unrealized Loss, Total, Fair Value	2,997.0	1,666.0
Fixed maturity securities, Duration of Unrealized Loss, Total, Gross Unrealized Depreciation	(365.0)	(31.0)
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Market Value	2,718.0	1,891.0
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Gross Unrealized Depreciation	(153.0)	(11.0)
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Market Value	39.0	38.0
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Gross Unrealized Depreciation	(4.0)
Fixed maturity securities, Duration of Unrealized Loss, Total, Fair Value	2,757.0	1,929.0
Fixed maturity securities, Duration of Unrealized Loss, Total, Gross Unrealized Depreciation	(157.0)	(11.0)
Commercial [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Market Value	489.0	139.0
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Gross Unrealized Depreciation	(61.0)	(2.0)
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Market Value	6.0	35.0
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Gross Unrealized Depreciation	(1.0)	(2.0)
Fixed maturity securities, Duration of Unrealized Loss, Total, Fair Value	495.0	174.0
Fixed maturity securities, Duration of Unrealized Loss, Total, Gross Unrealized Depreciation	(61.0)	(4.0)
Agency Residential [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Market Value	1,060.0	699.0
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Gross Unrealized Depreciation	(133.0)	(7.0)
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Market Value	306.0	168.0
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Gross Unrealized Depreciation	(62.0)	(3.0)
Fixed maturity securities, Duration of Unrealized Loss, Total, Fair Value	1,365.0	867.0
Fixed maturity securities, Duration of Unrealized Loss, Total, Gross Unrealized Depreciation	(195.0)	(10.0)
Non-agency Residential [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Market Value	2.0	1.0
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Gross Unrealized Depreciation
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Market Value	1.0
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Gross Unrealized Depreciation
Fixed maturity securities, Duration of Unrealized Loss, Total, Fair Value	3.0	2.0
Fixed maturity securities, Duration of Unrealized Loss, Total, Gross Unrealized Depreciation
Foreign Government Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Market Value	457.0	200.0
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Gross Unrealized Depreciation	(43.0)	(5.0)
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Market Value	116.0	15.0
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Gross Unrealized Depreciation	(22.0)	(2.0)
Fixed maturity securities, Duration of Unrealized Loss, Total, Fair Value	573.0	215.0
Fixed maturity securities, Duration of Unrealized Loss, Total, Gross Unrealized Depreciation	(65.0)	(7.0)
Foreign Corporate Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Market Value	907.0	677.0
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Gross Unrealized Depreciation	(112.0)	(17.0)
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Market Value	314.0	33.0
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Gross Unrealized Depreciation	(80.0)	(2.0)
Fixed maturity securities, Duration of Unrealized Loss, Total, Fair Value	1,222.0	710.0
Fixed maturity securities, Duration of Unrealized Loss, Total, Gross Unrealized Depreciation	(192.0)	(18.0)
Recorded An Allowance For Credit Losses [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Market Value	20.0
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Gross Unrealized Depreciation	(17.0)
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Market Value
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Gross Unrealized Depreciation
Fixed maturity securities, Duration of Unrealized Loss, Total, Fair Value	20.0	16.0
Fixed maturity securities, Duration of Unrealized Loss, Total, Gross Unrealized Depreciation	$ (17.0)	$ (0.4)

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Investments (Summary Of Aggregate Market Value And Gross Unrealized Depreciation Of Fixed Maturity And Equity Securities, By Contractual Maturity) (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Market Value	$ 8,822.0	$ 5,390.0
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Gross Unrealized Depreciation	(830.0)	(71.0)
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Market Value	1,499.0	492.0
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Gross Unrealized Depreciation	(301.0)	(15.0)
Fixed maturity securities, Duration of Unrealized Loss, Total, Fair Value	10,322.0	5,882.0
Fixed maturity securities, Duration of Unrealized Loss, Total, Gross Unrealized Depreciation	(1,130.0)	(86.0)
No Recorded Allowance for Credit Losses [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Market Value	8,802.0
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Gross Unrealized Depreciation	(812.0)
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Market Value	1,499.0
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Gross Unrealized Depreciation	(301.0)
Fixed maturity securities, Duration of Unrealized Loss, Total, Fair Value	10,302.0
Fixed maturity securities, Duration of Unrealized Loss, Total, Gross Unrealized Depreciation	(1,113.0)
Due In One Year Or Less [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Market Value	399.0	81.0
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Gross Unrealized Depreciation	(7.0)	(2.0)
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Market Value	40.0	36.0
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Gross Unrealized Depreciation	(3.0)	(4.0)
Fixed maturity securities, Duration of Unrealized Loss, Total, Fair Value	440.0	117.0
Fixed maturity securities, Duration of Unrealized Loss, Total, Gross Unrealized Depreciation	(10.0)	(6.0)
Due In One Year Through Five Years [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Market Value	2,377.0	1,209.0
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Gross Unrealized Depreciation	(184.0)	(19.0)
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Market Value	602.0	154.0
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Gross Unrealized Depreciation	(88.0)	(3.0)
Fixed maturity securities, Duration of Unrealized Loss, Total, Fair Value	2,978.0	1,364.0
Fixed maturity securities, Duration of Unrealized Loss, Total, Gross Unrealized Depreciation	(272.0)	(22.0)
Due In Five Years Through Ten Years [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Market Value	1,211.0	853.0
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Gross Unrealized Depreciation	(182.0)	(21.0)
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Market Value	360.0	34.0
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Gross Unrealized Depreciation	(101.0)	(2.0)
Fixed maturity securities, Duration of Unrealized Loss, Total, Fair Value	1,570.0	887.0
Fixed maturity securities, Duration of Unrealized Loss, Total, Gross Unrealized Depreciation	(283.0)	(23.0)
Due After Ten Years [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Market Value	546.0	517.0
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Gross Unrealized Depreciation	(93.0)	(10.0)
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Market Value	146.0	27.0
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Gross Unrealized Depreciation	(41.0)	(1.0)
Fixed maturity securities, Duration of Unrealized Loss, Total, Fair Value	692.0	543.0
Fixed maturity securities, Duration of Unrealized Loss, Total, Gross Unrealized Depreciation	(134.0)	(11.0)
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Market Value	2,718.0	1,891.0
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Gross Unrealized Depreciation	(153.0)	(11.0)
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Market Value	39.0	38.0
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Gross Unrealized Depreciation	(4.0)
Fixed maturity securities, Duration of Unrealized Loss, Total, Fair Value	2,757.0	1,929.0
Fixed maturity securities, Duration of Unrealized Loss, Total, Gross Unrealized Depreciation	(157.0)	(11.0)
Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Market Value	1,551.0	839.0
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Gross Unrealized Depreciation	(194.0)	(9.0)
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Market Value	313.0	203.0
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Gross Unrealized Depreciation	(63.0)	(5.0)
Fixed maturity securities, Duration of Unrealized Loss, Total, Fair Value	1,864.0	1,042.0
Fixed maturity securities, Duration of Unrealized Loss, Total, Gross Unrealized Depreciation	(256.0)	(14.0)
Recorded An Allowance For Credit Losses [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Market Value	20.0
Fixed maturity securities, Duration of Unrealized Loss, Less than 12 months, Gross Unrealized Depreciation	(17.0)
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Market Value
Fixed maturity securities, Duration of Unrealized Loss, Greater than 12 months, Gross Unrealized Depreciation
Fixed maturity securities, Duration of Unrealized Loss, Total, Fair Value	20.0	16.0
Fixed maturity securities, Duration of Unrealized Loss, Total, Gross Unrealized Depreciation	$ (17.0)	$ (0.4)

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Investments (Summary Of Components Of Net Investment Income) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustments	$ 132	$ 208	$ 482	$ 617
Funds held interest income (expense)	1	1	5	7
Interest income from Parent	3	2	7	4
Gross investment income	137	210	494	629
Investment expenses	(13)	(13)	(37)	(36)
Net investment income	124	197	457	593
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustments	129	83	339	260
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustments	7	4	15	10
Short-Term Investments and Cash [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustments	4		4
Limited Partnerships [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustments	(25)	82	63	260
Dividends From Preferred Shares Of Affiliate [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustments	8	8	23	23
Other [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustments	$ 11	$ 31	$ 37	$ 63

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Investments (Summary Of Components Of Net Realized Capital Gains (Losses)) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Schedule of Available-for-sale Securities [Line Items]
Allowance for credit losses	$ (12)	$ (7)	$ (12)	$ (30)
Gains (losses) from fair value adjustments	(245)	(48)	(801)	274
Total net gains (losses) on investments	(237)	(51)	(842)	267
Beginning Balance	(28)	(24)	(27)	(2)
Credit losses on securities where credit losses were not previously recorded	(9)	(5)	(17)	(26)
Increases in allowance on previously impaired securities	(3)	(4)	(4)	(5)
Decrease in allowance on previously impaired securities
Reduction in allowance due to disposals		1	9	2
Ending Balance	(39)	(31)	(39)	(31)
Fixed Maturity Securities [Member] | Market Value [Member]
Schedule of Available-for-sale Securities [Line Items]
Allowance for credit losses	(12)	(7)	(12)	(30)
Net realized gains (losses) from dispositions	(45)	3	(60)	11
Corporate Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Beginning Balance	(26)	(18)	(19)	(1)
Credit losses on securities where credit losses were not previously recorded	(2)	(5)	(9)	(21)
Increases in allowance on previously impaired securities	(3)	(1)	(4)	(2)
Decrease in allowance on previously impaired securities
Reduction in allowance due to disposals		1	1	2
Ending Balance	(31)	(23)	(31)	(23)
Asset Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Beginning Balance		(5)	(8)
Credit losses on securities where credit losses were not previously recorded	(6)		(6)	(5)
Increases in allowance on previously impaired securities		(3)		(3)
Decrease in allowance on previously impaired securities
Reduction in allowance due to disposals			8
Ending Balance	(6)	(8)	(6)	(8)
Equity Securities [Member] | Market Value [Member]
Schedule of Available-for-sale Securities [Line Items]
Net realized gains (losses) from dispositions	57		19	6
Gains (losses) from fair value adjustments	(134)	(4)	(451)	137
Other invested assets	6	2	10	6
Other Invested Assets [Member]
Schedule of Available-for-sale Securities [Line Items]
Gains (losses) from fair value adjustments	(111)	(44)	(350)	137
Short-Term Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Net realized gains (losses) from dispositions	1		1
Foreign Corporate Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Beginning Balance	(2)
Credit losses on securities where credit losses were not previously recorded	(1)		(2)
Increases in allowance on previously impaired securities
Decrease in allowance on previously impaired securities
Reduction in allowance due to disposals			1
Ending Balance	$ (2)		$ (2)

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Investments (Summary Of Gross Gains (Losses) From Sales Of Fixed Maturity And Equity Securities) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Schedule of Available-for-sale Securities [Line Items]
Proceeds from sales of fixed maturity securities, available for sale			$ 812	$ 394
Proceeds from sales of equity securities			1,016	450
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Proceeds from sales of fixed maturity securities, available for sale	$ 301	$ 152	812	394
Gross gains from dispositions	1	9	7	24
Gross losses from dispositions	(46)	(6)	(67)	(13)
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Proceeds from sales of equity securities	591	104	1,016	450
Gross gains from dispositions	59	3	67	18
Gross losses from dispositions	$ (2)	$ (3)	$ (48)	$ (11)

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Reserves For Losses, LAE And Future Policy Benefit Reserve (Narrative) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Reserves For Losses And LAE [Line Items]
Current year incurred losses	$ 4,606	$ 4,106
Incurred related to : Prior years	18	$ (4)
Catastrophe [Member]
Reserves For Losses And LAE [Line Items]
Current year incurred losses	132
Ukraine/Russia War [Member]
Reserves For Losses And LAE [Line Items]
Current year incurred losses	$ 25

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Reserves For Losses, LAE And Future Policy Benefit Reserve (Summary Of Activity In The Reserve For Losses And LAE) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Reserves For Losses, LAE And Future Policy Benefit Reserve [Abstract]
Gross reserves beginning of period	$ 13,121	$ 11,578
Less reinsurance recoverables on unpaid losses	(3,651)	(3,951)
Net reserves beginning of period	9,470	7,627
Incurred related to: Current year	4,606	4,106
Incurred related to : Prior years	18	(4)
Total incurred losses and LAE	4,624	4,103
Paid related to: Current year	1,502	1,118
Paid related to: Prior years	1,303	1,203
Total paid losses and LAE	2,805	2,321
Foreign exchange/translation adjustment	(70)	(20)
Net reserves end of period	11,221	9,389
Plus reinsurance recoverables on unpaid losses	3,628	3,839
Gross reserves end of period	$ 14,849	$ 13,228

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Fair Value (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	$ 12,070		$ 12,070		$ 12,860
Other invested assets, at fair value	1,680		1,680		2,031
Fixed maturities - held to maturity, at amortized cost, net of credit allowances	809		809
Fixed maturities - held to maturity, at amortized cost, net of credit allowances, fair value	789		789
Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other invested assets, at fair value
Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other invested assets, at fair value	1,680		1,680		2,031
Internally Managed Public Equity Portfolio [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	1,200		1,200		1,300
Market Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Transfers in and/or (out) of Level 3	(779)		(779)
Fair Value [Member] | Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other invested assets, at fair value	309		309		287
Fixed Maturities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	1,600		1,600		2,000
Fixed Maturities [Member] | Market Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Transfers in and/or (out) of Level 3			779
Asset Backed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	3,645		3,645		3,466
Fixed maturities - held to maturity, at amortized cost, net of credit allowances, fair value	611		611
Asset Backed Securities [Member] | Internally Managed Portfolio Collateralized Loan Obligations [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	$ 2,400		$ 2,400		$ 2,000

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Fair Value (Fair Value Measurement Levels For All Assets, Recorded At Fair And Market Value) (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	$ 12,070	$ 12,860
Equity securities, at fair value	1,258	1,758
Other invested assets, at fair value	1,680	2,031
Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Equity securities, at fair value	1,212	1,722
Other invested assets, at fair value
Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Equity securities, at fair value	46	36
Other invested assets, at fair value
Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Equity securities, at fair value
Other invested assets, at fair value	1,680	2,031
Fixed Maturity Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	12,070	12,860
Fixed Maturity Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value
Fixed Maturity Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	10,442	10,863
Fixed Maturity Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	1,628	1,997
U.S. Treasury Securities And Obligations Of U.S. Government Agencies And Corporations [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	562	663
U.S. Treasury Securities And Obligations Of U.S. Government Agencies And Corporations [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value
U.S. Treasury Securities And Obligations Of U.S. Government Agencies And Corporations [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	562	663
U.S. Treasury Securities And Obligations Of U.S. Government Agencies And Corporations [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value
Obligation of U.S. States and Political Subdivisions [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	481	587
Obligation of U.S. States and Political Subdivisions [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value
Obligation of U.S. States and Political Subdivisions [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	481	587
Obligation of U.S. States and Political Subdivisions [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value
Corporate Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	3,564	4,075
Corporate Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value
Corporate Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	2,845	3,345
Corporate Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	719	730
Asset Backed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	3,645	3,466
Asset Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value
Asset Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	2,752	2,215
Asset Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	893	1,251
Commercial Mortgage Backed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	495	603
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	495	603
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value
Agency Residential [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	1,367	1,261
Agency Residential [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value
Agency Residential [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	1,367	1,261
Agency Residential [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value
Non-agency Residential [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	3	4
Non-agency Residential [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value
Non-agency Residential [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	3	4
Non-agency Residential [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value
Foreign Government Debt Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	626	692
Foreign Government Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value
Foreign Government Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	626	692
Foreign Government Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value
Foreign Corporate Debt Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	1,326	1,510
Foreign Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value
Foreign Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	1,310	1,494
Foreign Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	$ 16	$ 16

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Fair Value (Activity Under Level 3, Fair Value Measurements Using Significant Unobservable Inputs By Asset Type) (Details) - Market Value [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 2,163	$ 1,455	$ 1,997	$ 1,260
Total gains or (losses) (realized/unrealized), Included in earnings	(3)		(6)	(19)
Total gains or (losses) (realized/unrealized), Included in other comprehensive income (loss)	59	(2)	(28)	10
Purchases, issuances and settlements	186	279	443	482
Transfers in and/or (out) of Level 3	(779)		(779)
Ending balance	1,628	1,732	1,628	1,732
The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	(3)	(2)		(24)
Corporate Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	862	635	730	631
Total gains or (losses) (realized/unrealized), Included in earnings	(3)	3	(6)	(12)
Total gains or (losses) (realized/unrealized), Included in other comprehensive income (loss)	(6)	(1)	(13)	6
Purchases, issuances and settlements	27	87	42	99
Transfers in and/or (out) of Level 3	(163)		(35)
Ending balance	719	723	719	723
The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	(3)	1	(8)	(17)
Asset-backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	1,255	815	1,251	623
Total gains or (losses) (realized/unrealized), Included in earnings		(3)		(7)
Total gains or (losses) (realized/unrealized), Included in other comprehensive income (loss)	65		(11)	4
Purchases, issuances and settlements	159	192	387	384
Transfers in and/or (out) of Level 3	(587)		(735)
Ending balance	893	1,004	893	1,004
The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date		(3)	8	(8)
CMBS [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	6
Total gains or (losses) (realized/unrealized), Included in earnings
Total gains or (losses) (realized/unrealized), Included in other comprehensive income (loss)
Purchases, issuances and settlements			6
Transfers in and/or (out) of Level 3	(6)		(6)
Ending balance
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
Foreign Corporate Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	40	5	16	6
Total gains or (losses) (realized/unrealized), Included in earnings
Total gains or (losses) (realized/unrealized), Included in other comprehensive income (loss)			(4)
Purchases, issuances and settlements			8	(1)
Transfers in and/or (out) of Level 3	(24)		(4)
Ending balance	16	5	16	5
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

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Comprehensive Income (Loss) (Components Of Comprehensive Income (Loss) In The Consolidated Statements Of Operations) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Comprehensive Income (Loss) [Line Items]
Reclassification, Before Tax		$ 2	$ 3	$ 7
Reclassification, Tax Effect			(1)	(2)
Reclassification, Net of Tax		2	2	6
Total, Before Tax	(343)	(77)	(1,364)	(125)
Total, Tax Effect	72	16	285	26
Total other comprehensive income (loss), net of tax	(271)	(61)	(1,078)	(99)
URA(D) On Securities [Member]
Comprehensive Income (Loss) [Line Items]
Before Tax	(357)	(55)	(1,376)	(139)
Tax Effect	75	12	288	29
Net of Tax	(282)	(43)	(1,087)	(110)
Reclassification, Before Tax	50	3	61	13
Reclassification, Tax Effect	(11)	(1)	(13)	(3)
Reclassification, Net of Tax	40	2	48	10
Total other comprehensive income (loss), net of tax	(242)	(41)	(1,039)	(100)
Foreign Currency Translation Adjustments [Member]
Comprehensive Income (Loss) [Line Items]
Before Tax	(37)	(26)	(52)	(6)
Tax Effect	8	5	11	1
Net of Tax	(29)	(21)	(41)	(5)
Total other comprehensive income (loss), net of tax	(29)	(21)	(41)	(5)
Benefit Plan Net Gain (Loss) [Member]
Comprehensive Income (Loss) [Line Items]
Total other comprehensive income (loss), net of tax		$ 2	$ 2	$ 6

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Comprehensive Income (Loss) (Reclassification From Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other net gains (losses) on investments	$ 20	$ 4	$ (29)	$ 23
Income tax expense (benefit)	135	28	170	(118)
NET INCOME (LOSS)	(542)	(143)	(626)	442
URA(D) On Securities [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other net gains (losses) on investments	50	3	61	13
Income tax expense (benefit)	(11)	(1)	(13)	(3)
NET INCOME (LOSS)	40	2	48	10
Benefit Plan Net Gain (Loss) [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other underwriting expenses		(2)	(3)	(7)
Income tax expense (benefit)			(1)	(2)
NET INCOME (LOSS)		$ 2	$ 2	$ 6

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Comprehensive Income (Loss) (Components Of Accumulated Other Comprehensive Income (Loss), Net Of Tax, In The Consolidated Balance Sheets) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Comprehensive Income (Loss) [Line Items]
Beginning balance			$ 7,038
Net increase (decrease) during the period	$ (271)	$ (61)	(1,078)	$ (99)
Ending balance	5,334	6,758	5,334	6,758
URA(D) On Securities [Member]
Comprehensive Income (Loss) [Line Items]
Beginning balance	(675)	255	122	313
Net increase (decrease) during the period	(242)	(41)	(1,039)	(100)
Ending balance	(917)	213	(917)	213
Foreign Currency Translation Adjustments [Member]
Comprehensive Income (Loss) [Line Items]
Beginning balance	8	45	20	29
Net increase (decrease) during the period	(29)	(21)	(41)	(5)
Ending balance	(21)	24	(21)	24
Benefit Plan Net Gain (Loss) [Member]
Comprehensive Income (Loss) [Line Items]
Beginning balance	(50)	(70)	(50)	(74)
Net increase (decrease) during the period		2	2	6
Ending balance	(49)	(68)	(49)	(68)
Accumulated Other Comprehensive Income (Loss) [Member]
Comprehensive Income (Loss) [Line Items]
Beginning balance	(716)	230	91	268
Net increase (decrease) during the period	(271)	(61)	(1,078)	(99)
Ending balance	$ (987)	$ 169	$ (987)	$ 169

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Collateralized Reinsurance And Trust Agreements (Narrative) (Details) $ in Millions	Sep. 30, 2022 USD ($)
Effects of Reinsurance [Line Items]
Amount on deposit in trust accounts	$ 632
Restricted cash	$ 78

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Collateralized Reinsurance And Trust Agreements (Summary Of Collateralized Reinsurance Agreements) (Details) - Kilimanjaro Re Limited [Member] $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($)
Effects of Reinsurance [Line Items]
Limit	$ 2,063
Series 2018-1 Class A-2 [Member]
Effects of Reinsurance [Line Items]
Description	US, Canada, Puerto Rico – Named Storm and Earthquake Events
Effective Date	Apr. 30, 2018
Expiration Date	May 05, 2023
Limit	$ 63
Coverage Basis	Aggregate
Series 2018-1 Class B-2 [Member]
Effects of Reinsurance [Line Items]
Description	US, Canada, Puerto Rico – Named Storm and Earthquake Events
Effective Date	Apr. 30, 2018
Expiration Date	May 05, 2023
Limit	$ 200
Coverage Basis	Aggregate
Series 2019-1 Class A-1 [Member]
Effects of Reinsurance [Line Items]
Description	US, Canada, Puerto Rico – Named Storm and Earthquake Events
Effective Date	Dec. 12, 2019
Expiration Date	Dec. 19, 2023
Limit	$ 150
Coverage Basis	Occurrence
Series 2019-1 Class B-1 [Member]
Effects of Reinsurance [Line Items]
Description	US, Canada, Puerto Rico – Named Storm and Earthquake Events
Effective Date	Dec. 12, 2019
Expiration Date	Dec. 19, 2023
Limit	$ 275
Coverage Basis	Aggregate
Series 2019-1 Class A-2 [Member]
Effects of Reinsurance [Line Items]
Description	US, Canada, Puerto Rico – Named Storm and Earthquake Events
Effective Date	Dec. 12, 2019
Expiration Date	Dec. 19, 2024
Limit	$ 150
Coverage Basis	Occurrence
Series 2019-1 Class B-2 [Member]
Effects of Reinsurance [Line Items]
Description	US, Canada, Puerto Rico – Named Storm and Earthquake Events
Effective Date	Dec. 12, 2019
Expiration Date	Dec. 19, 2024
Limit	$ 275
Coverage Basis	Aggregate
Series 2021-1 Class A-1 [Member]
Effects of Reinsurance [Line Items]
Description	US, Canada, Puerto Rico – Named Storm and Earthquake Events
Effective Date	Apr. 08, 2021
Expiration Date	Apr. 21, 2025
Limit	$ 150
Coverage Basis	Occurrence
Series 2021-1 Class B-1 [Member]
Effects of Reinsurance [Line Items]
Description	US, Canada, Puerto Rico – Named Storm and Earthquake Events
Effective Date	Apr. 08, 2021
Expiration Date	Apr. 21, 2025
Limit	$ 85
Coverage Basis	Aggregate
Series 2021-1 Class C-1 [Member]
Effects of Reinsurance [Line Items]
Description	US, Canada, Puerto Rico – Named Storm and Earthquake Events
Effective Date	Apr. 08, 2021
Expiration Date	Apr. 21, 2025
Limit	$ 85
Coverage Basis	Aggregate
Series 2021-1 Class A-2 [Member]
Effects of Reinsurance [Line Items]
Description	US, Canada, Puerto Rico – Named Storm and Earthquake Events
Effective Date	Apr. 08, 2021
Expiration Date	Apr. 20, 2026
Limit	$ 150
Coverage Basis	Occurrence
Series 2021-1 Class B-2 [Member]
Effects of Reinsurance [Line Items]
Description	US, Canada, Puerto Rico – Named Storm and Earthquake Events
Effective Date	Apr. 08, 2021
Expiration Date	Apr. 20, 2026
Limit	$ 90
Coverage Basis	Aggregate
Series 2021-1 Class C-2 [Member]
Effects of Reinsurance [Line Items]
Description	US, Canada, Puerto Rico – Named Storm and Earthquake Events
Effective Date	Apr. 08, 2021
Expiration Date	Apr. 20, 2026
Limit	$ 90
Coverage Basis	Aggregate
Series 2022-1 Class A [Member]
Effects of Reinsurance [Line Items]
Description	US, Canada, Puerto Rico – Named Storm and Earthquake Events
Effective Date	Jun. 22, 2022
Expiration Date	Jun. 22, 2025
Limit	$ 300
Coverage Basis	Aggregate

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Collateralized Reinsurance And Trust Agreements (Schedule Of Proceeds From Issuance Of Notes Held In Reinsurance Trusts) (Details) - Kilimanjaro Re Limited [Member] $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($)
Effects of Reinsurance [Line Items]
Amount	$ 2,063
Series 2018-1 Class A-2 [Member]
Effects of Reinsurance [Line Items]
Issue Date	Apr. 30, 2018
Maturity Date	May 05, 2023
Amount	$ 63
Series 2018-1 Class B-2 [Member]
Effects of Reinsurance [Line Items]
Issue Date	Apr. 30, 2018
Maturity Date	May 05, 2023
Amount	$ 200
Series 2019-1 Class A-1 [Member]
Effects of Reinsurance [Line Items]
Issue Date	Dec. 12, 2019
Maturity Date	Dec. 19, 2023
Amount	$ 150
Series 2019-1 Class B-1 [Member]
Effects of Reinsurance [Line Items]
Issue Date	Dec. 12, 2019
Maturity Date	Dec. 19, 2023
Amount	$ 275
Series 2019-1 Class A-2 [Member]
Effects of Reinsurance [Line Items]
Issue Date	Dec. 12, 2019
Maturity Date	Dec. 19, 2024
Amount	$ 150
Series 2019-1 Class B-2 [Member]
Effects of Reinsurance [Line Items]
Issue Date	Dec. 12, 2019
Maturity Date	Dec. 19, 2024
Amount	$ 275
Series 2021-1 Class A-1 [Member]
Effects of Reinsurance [Line Items]
Issue Date	Apr. 08, 2021
Maturity Date	Apr. 21, 2025
Amount	$ 150
Series 2021-1 Class B-1 [Member]
Effects of Reinsurance [Line Items]
Issue Date	Apr. 08, 2021
Maturity Date	Apr. 21, 2025
Amount	$ 85
Series 2021-1 Class C-1 [Member]
Effects of Reinsurance [Line Items]
Issue Date	Apr. 08, 2021
Maturity Date	Apr. 21, 2025
Amount	$ 85
Series 2021-1 Class A-2 [Member]
Effects of Reinsurance [Line Items]
Issue Date	Apr. 08, 2021
Maturity Date	Apr. 20, 2026
Amount	$ 150
Series 2021-1 Class B-2 [Member]
Effects of Reinsurance [Line Items]
Issue Date	Apr. 08, 2021
Maturity Date	Apr. 20, 2026
Amount	$ 90
Series 2021-1 Class C-2 [Member]
Effects of Reinsurance [Line Items]
Issue Date	Apr. 08, 2021
Maturity Date	Apr. 20, 2026
Amount	$ 90
Series 2022-1 Class A [Member]
Effects of Reinsurance [Line Items]
Issue Date	Jun. 22, 2022
Maturity Date	Jun. 22, 2025
Amount	$ 300

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Senior Notes (Schedule Of Outstanding Senior Notes) (Details) - USD ($)	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Assets Sold under Agreements to Repurchase [Line Items]
Consolidated Balance Sheet Amount	$ 2,347,000,000	$ 2,346,000,000
Senior Notes [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Principal Amounts	2,400,000,000
Consolidated Balance Sheet Amount	2,347,000,000	2,346,000,000
Market Value	$ 1,635,000,000	2,542,000,000
Senior Notes [Member] | Senior Notes 4.868% [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Date Issued	Jun. 05, 2014
Date Due	Jun. 01, 2044
Principal Amounts	$ 400,000,000
Consolidated Balance Sheet Amount	397,000,000	397,000,000
Market Value	$ 339,000,000	504,000,000
Debt instrument, stated interest rate	4.868%
Senior Notes [Member] | Senior Notes 3.50% [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Date Issued	Oct. 07, 2020
Date Due	Oct. 15, 2050
Principal Amounts	$ 1,000,000,000
Consolidated Balance Sheet Amount	980,000,000	980,000,000
Market Value	$ 669,000,000	1,055,000,000
Debt instrument, stated interest rate	3.50%
Senior Notes [Member] | Senior Notes 3.125% [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Date Issued	Oct. 04, 2021
Date Due	Oct. 15, 2052
Principal Amounts	$ 1,000,000,000
Consolidated Balance Sheet Amount	969,000,000	968,000,000
Market Value	$ 627,000,000	$ 983,000,000
Debt instrument, stated interest rate	3.125%

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Senior Notes (Schedule Of Interest Expense Incurred In Connection With Senior Notes) (Details) - Senior Notes [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Debt Instrument [Line Items]
Interest expense incurred	$ 22	$ 14	$ 65	$ 41
Senior Notes 4.868% [Member]
Debt Instrument [Line Items]
Interest expense incurred	$ 5	5	$ 15	15
Debt instrument, stated interest rate	4.868%		4.868%
Senior Notes 3.50% [Member]
Debt Instrument [Line Items]
Interest expense incurred	$ 9	9	$ 26	26
Debt instrument, stated interest rate	3.50%		3.50%
Senior Notes 3.125% [Member]
Debt Instrument [Line Items]
Interest expense incurred	$ 8		$ 24
Debt instrument, stated interest rate	3.125%		3.125%

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Long Term Subordinated Notes (Narrative) (Details) $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2022 Item	Dec. 31, 2020 USD ($)	Dec. 31, 2009 USD ($)	Nov. 14, 2022
Subordinated Debt [Member]
Debt Instrument [Line Items]
Outstanding debt reduction	$ 6		$ 13	$ 161
Gain on repurchase and retirement of debt	$ 1
Senior Notes 4.868% [Member] | Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate	4.868%	4.868%
Maturity date		Jun. 01, 2044
Subordinated Notes 6.60% [Member] | Subordinated Debt [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate	6.60%	6.60%
Interest payment commencement date		Nov. 15, 2007
Right to defer interest, number of occasions | Item		1
Right to defer interest on one or more occasions for up to number of consecutive years		10 years
Interest basis, 3 month LIBOR plus number of basis points, reset quarterly		2.385%
Percentage of principal amount required for redemption		100.00%
Subordinated Notes 6.60% [Member] | Subordinated Debt [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Reset quarterly interest rate					5.29%
Subordinated Notes 6.60% [Member] | Subordinated Debt [Member] | Minimum [Member]
Debt Instrument [Line Items]
Interest payment date		May 3, 2007
Redemption date		May 15, 2017
Subordinated Notes 6.60% [Member] | Subordinated Debt [Member] | Maximum [Member]
Debt Instrument [Line Items]
Interest payment date		May 14, 2017
Redemption date		May 01, 2047
Senior Notes 3.50% [Member] | Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate	3.50%	3.50%
Maturity date		Oct. 15, 2050
Senior Notes 3.125% [Member] | Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate	3.125%	3.125%
Maturity date		Oct. 15, 2052

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Long Term Subordinated Notes (Schedule Of Outstanding Fixed To Floating Rate Long Term Subordinated Notes) (Details) - USD ($)	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Consolidated Balance Sheet Amount	$ 218,000,000	$ 224,000,000
Subordinated Notes 6.60% [Member] | Long Term Subordinated Debt [Member]
Debt Instrument [Line Items]
Date Issued	Apr. 26, 2007
Original Principal Amount	$ 400,000,000
Consolidated Balance Sheet Amount	218,000,000	224,000,000
Market Value	$ 179,000,000	$ 216,000,000
Subordinated Notes 6.60% [Member] | Long Term Subordinated Debt [Member] | Scheduled [Member]
Debt Instrument [Line Items]
Maturity date	May 15, 2037
Subordinated Notes 6.60% [Member] | Long Term Subordinated Debt [Member] | Final [Member]
Debt Instrument [Line Items]
Maturity date	May 01, 2067

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Long Term Subordinated Notes (Schedule Of Interest Expense Incurred In Connection With Long Term Subordinated Notes) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Long Term Subordinated Notes [Abstract]
Interest expense incurred	$ 3	$ 1	$ 6	$ 4

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Federal Home Loan Bank Membership (Narrative) (Details) - Federal Home Loan Bank Of New York [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items]
Maximum percentage of admitted assets allowed for borrowing base	10.00%		10.00%
Admitted assets for FHLB	$ 22,000.0		$ 22,000.0
Maximum amount available under FHLB	2,200.0		2,200.0
Outstanding	519.0		$ 519.0
Amount of borrowed funds required to be used to acquire additional membership stock, percentage			4.50%
Interest expense	$ 0.8	$ 0.3	$ 2.3	$ 0.8
Minimum [Member]
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items]
FHLB advance interest rate	0.53%		0.53%
Maximum [Member]
Federal Home Loan Bank Advances Branch Of F H L B Bank [Line Items]
FHLB advance interest rate	0.65%		0.65%

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Segment Reporting (Narrative) (Details)	Sep. 30, 2022
Concentration Risk [Line Items]
Percentage threshold of company revenue not exceeded by any other country	5.00%

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Segment Reporting (Schedule Of Underwriting Results For Operating Segments) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Information [Line Items]
Gross written premiums	$ 2,585	$ 2,524	$ 7,227	$ 6,974
Net written premiums	2,228	2,069	6,019	5,763
Premiums earned	2,104	1,851	5,887	5,315
Incurred losses and LAE	2,094	1,653	4,624	4,103
Commission and brokerage	423	389	1,216	1,126
Other underwriting expenses	127	110	365	329
Underwriting gain (loss)	(541)	(300)	(319)	(243)
Reinsurance [Member]
Segment Reporting Information [Line Items]
Gross written premiums	1,681	1,693	4,454	4,552
Net written premiums	1,506	1,461	3,936	3,961
Premiums earned	1,398	1,280	3,902	3,690
Incurred losses and LAE	1,531	1,208	3,227	2,917
Commission and brokerage	337	320	985	935
Other underwriting expenses	33	32	97	101
Underwriting gain (loss)	(504)	(279)	(406)	(264)
Insurance [Member]
Segment Reporting Information [Line Items]
Gross written premiums	905	831	2,773	2,422
Net written premiums	722	608	2,083	1,802
Premiums earned	706	571	1,985	1,625
Incurred losses and LAE	564	445	1,398	1,185
Commission and brokerage	85	69	231	190
Other underwriting expenses	94	77	269	228
Underwriting gain (loss)	$ (37)	$ (21)	$ 87	$ 22

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Segment Reporting (Schedule Of Underwriting Results For Operating Segments To Income (Loss) Before Taxes) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting [Abstract]
Underwriting gain (loss)	$ (541)	$ (300)	$ (319)	$ (243)
Net investment income	124	197	457	593
Net gains (losses) on investments	(237)	(51)	(842)	267
Corporate expenses	(5)	(11)	(17)	(23)
Interest, fee and bond issue cost amortization expense	(26)	(16)	(74)	(47)
Other income (expense)	7	10	(2)	12
INCOME (LOSS) BEFORE TAXES	$ (677)	$ (171)	$ (796)	$ 560

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Segment Reporting (Schedule Of Gross Written Premium Derived From Largest Non-U.S. Market) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Canada [Member]
Segment Reporting Information [Line Items]
Gross written premiums	$ 103	$ 60	$ 252	$ 164

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Related-Party Transactions (Narrative) (Details) € in Millions, £ in Millions, $ in Millions				1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 29, 2022 USD ($)	Aug. 05, 2021 USD ($)	Dec. 17, 2019 USD ($)	Dec. 31, 2015 USD ($) shares	Sep. 30, 2022 USD ($) shares	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) shares	Sep. 30, 2021 USD ($)	Jan. 31, 2022 EUR (€)	Jan. 31, 2022 GBP (£)	Dec. 31, 2021 GBP (£)	Dec. 31, 2017 USD ($)	Dec. 31, 2021 USD ($)	Mar. 31, 2011 shares
Related Party Transaction [Line Items]
Notes Receivable - affiliated					$ 715.0		$ 715.0						$ 500.0
Shares purchased and held | shares														9,719,971
Shares transferred to affiliated entity | shares				9,719,971
Shares fair value				$ 1,800.0
Shares received in exchange from affiliated entity for transfer | shares				1,773.214
Common Shares Authorized for Repurchase, amount | shares					32,000,000		32,000,000
Preferred shares par value				$ 1.0
Annual dividend rate				1.75%
Amount transferred												$ 1,000.0
Subject loss reserves												2,300.0
Reinsurance recoverables - affiliated					$ 2,017.0		$ 2,017.0						2,299.0
Bermuda Re [Member]
Related Party Transaction [Line Items]
Amount transferred												970.0
Reinsurance recoverables - affiliated					854.0		854.0						$ 856.0
Note Agreement - Maturing December 2028 [Member] | Note Payable - Affiliated [Member] | Everest Re Group, Ltd. [Member]
Related Party Transaction [Line Items]
Notes Receivable - affiliated			$ 300.0
Note receivable interest rate			1.69%
Interest income					1.3		3.8
Note Agreement - Maturing August 2030 [Member] | Note Payable - Affiliated [Member] | Everest Re Group, Ltd. [Member]
Related Party Transaction [Line Items]
Notes Receivable - affiliated		$ 200.0
Note receivable interest rate		1.00%
Interest income					0.5	$ 0.3	1.5	$ 0.3
Note Agreement - Maturing June 2052 [Member] | Note Payable - Affiliated [Member] | Everest Re Group, Ltd. [Member]
Related Party Transaction [Line Items]
Notes Receivable - affiliated	$ 215.0
Note receivable interest rate	3.11%
Interest income					$ 1.7		$ 1.7
Bermuda Re [Member]
Related Party Transaction [Line Items]
Adverse development coverage												$ 500.0
Catastrophe Reinsurance [Member] | Bermuda Re [Member] | Everest Re Group, Ltd. [Member]
Related Party Transaction [Line Items]
Reinsurance agreement | £											£ 100
Payments for coverage | £											£ 4
Catastrophe Reinsurance [Member] | Bermuda Re [Member] | Everest Re Group, Ltd. [Member] | Coverage for each Catastrophe Occurrence above Specified Amount [Member]
Related Party Transaction [Line Items]
Reinsurance agreement | £										£ 40
Catastrophe Reinsurance [Member] | Ireland Re [Member] | Everest Re Group, Ltd. [Member]
Related Party Transaction [Line Items]
Reinsurance agreement | €									€ 145
Payments for coverage | €									10
Catastrophe Reinsurance [Member] | Ireland Re [Member] | Everest Re Group, Ltd. [Member] | Coverage for each Catastrophe Occurrence above Specified Amount [Member]
Related Party Transaction [Line Items]
Reinsurance agreement | €									€ 16

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Related-Party Transactions (Dividends Received On Preferred Shares) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Dividends From Preferred Shares Of Affiliate [Member]
Related Party Transaction [Line Items]
Dividends received on preferred stock of affiliate	$ 8	$ 8	$ 23	$ 23

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Related-Party Transactions (Affiliated Quota Share Reinsurance Agreements For All New And Renewal Business For The Indicated Coverage Period) (Details) - 9 months ended Sep. 30, 2022	CAD ($)	USD ($)
Coverage Period 01/01/2010-12/31/2010 [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re	Everest Re
Percent Ceded	44.00%	44.00%
Assuming Company	Bermuda Re	Bermuda Re
Type of Business	property / casualty business	property / casualty business
Single Occurrence Limit		$ 150,000,000
Aggregate Limit		$ 325,000,000
Coverage Period 01/01/2011-12/31/2011 [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re	Everest Re
Percent Ceded	50.00%	50.00%
Assuming Company	Bermuda Re	Bermuda Re
Type of Business	property / casualty business	property / casualty business
Single Occurrence Limit		$ 150,000,000
Aggregate Limit		$ 300,000,000
Coverage Period 01/01/2012-12/31/2014 [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re	Everest Re
Percent Ceded	50.00%	50.00%
Assuming Company	Bermuda Re	Bermuda Re
Type of Business	property / casualty business	property / casualty business
Single Occurrence Limit		$ 100,000,000
Aggregate Limit		$ 200,000,000
Coverage Period 01/01/2015-12/31/2016 [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re	Everest Re
Percent Ceded	50.00%	50.00%
Assuming Company	Bermuda Re	Bermuda Re
Type of Business	property / casualty business	property / casualty business
Single Occurrence Limit		$ 163,000,000
Aggregate Limit		$ 325,000,000
Coverage Period 01/01/2017-12/31/2017 [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re	Everest Re
Percent Ceded	60.00%	60.00%
Assuming Company	Bermuda Re	Bermuda Re
Type of Business	property / casualty business	property / casualty business
Single Occurrence Limit		$ 219,000,000
Aggregate Limit		$ 438,000,000
Coverage Period 01/01/2010-12/31/2010 [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re- Canadian Branch	Everest Re- Canadian Branch
Percent Ceded	60.00%	60.00%
Assuming Company	Bermuda Re	Bermuda Re
Type of Business	property business	property business
Single Occurrence Limit	$ 350,000,000
Aggregate Limit
Coverage Period 01/01/2011-12/31/2011 [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re- Canadian Branch	Everest Re- Canadian Branch
Percent Ceded	60.00%	60.00%
Assuming Company	Bermuda Re	Bermuda Re
Type of Business	property business	property business
Single Occurrence Limit	$ 350,000,000
Aggregate Limit
Coverage Period 01/01/2012-12/31/2012 [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re- Canadian Branch	Everest Re- Canadian Branch
Percent Ceded	75.00%	75.00%
Assuming Company	Bermuda Re	Bermuda Re
Type of Business	property / casualty business	property / casualty business
Single Occurrence Limit	$ 206,000,000
Aggregate Limit	$ 413,000,000
Coverage Period 01/01/2013-12/31/2013 [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re- Canadian Branch	Everest Re- Canadian Branch
Percent Ceded	75.00%	75.00%
Assuming Company	Bermuda Re	Bermuda Re
Type of Business	property / casualty business	property / casualty business
Single Occurrence Limit	$ 150,000,000
Aggregate Limit	$ 413,000,000
Coverage Period 01/01/2014-12/31/2017 [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re- Canadian Branch	Everest Re- Canadian Branch
Percent Ceded	75.00%	75.00%
Assuming Company	Bermuda Re	Bermuda Re
Type of Business	property / casualty business	property / casualty business
Single Occurrence Limit	$ 263,000,000
Aggregate Limit	$ 413,000,000
Coverage Period 01/01/2012-12/31/2017 [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Canada	Everest Canada
Percent Ceded	80.00%	80.00%
Assuming Company	Branch	Branch
Type of Business	property business	property business
Single Occurrence Limit
Aggregate Limit
Coverage Period 01/01/2020 [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest International Assurance	Everest International Assurance
Percent Ceded	100.00%	100.00%
Assuming Company	Bermuda Re	Bermuda Re
Type of Business	life business	life business
Single Occurrence Limit
Aggregate Limit

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Related-Party Transactions ((Schedule Of Loss Portfolio Transfer Reinsurance Agreements, Net Insurance Exposures And Reserves Were Transferred To An Affiliate) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($)
Effective Date 10/01/2001 [Member]
Related Party Transaction [Line Items]
Transferring Company	Everest Re (Belgium Branch)
Assuming Company	Bermuda Re
% of Business Transfer	10000.00%
Covered Period of Transfer	All years
Effective Date 10/01/2008 [Member]
Related Party Transaction [Line Items]
Transferring Company	Everest Re
Assuming Company	Bermuda Re
Amount of Transfer	$ 747
Covered Period of Transfer	01/01/2002-12/31/2007
Effective Date 12/31/2017 [Member]
Related Party Transaction [Line Items]
Transferring Company	Everest Re
Assuming Company	Bermuda Re
Amount of Transfer	$ 970
Covered Period of Transfer	All years

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Related-Party Transactions (Premiums And Losses Ceded By The Company To Affiliate) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Mt Logan Re [Member]
Effects of Reinsurance [Line Items]
Ceded written premiums	$ 60	$ 98	$ 122	$ 226
Ceded earned premiums	51	86	122	212
Ceded losses and LAE	82	97	142	192
Bermuda Re [Member]
Effects of Reinsurance [Line Items]
Ceded written premiums	95	78	279	224
Ceded earned premiums	95	77	279	222
Ceded losses and LAE	(2)	12	(1)	3
Assumed written premiums		5	3	5
Assumed earned premiums		4	5	4
Assumed losses and LAE
Ireland Re [Member]
Effects of Reinsurance [Line Items]
Assumed written premiums	2	7	6	13
Assumed earned premiums	2	7	6	12
Assumed losses and LAE	(4)	62	(2)	62
Ireland Insurance [Member]
Effects of Reinsurance [Line Items]
Assumed written premiums	3	4	7	6
Assumed earned premiums	2	2	6	4
Assumed losses and LAE	$ 1	$ 1	$ 3	$ 2