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EVEREST GROUP, LTD. - Quarter Report: 2025 March (Form 10-Q)

(Some amounts may not reconcile due to rounding.)
 $()Credit losses on securities where credit  ()Increases in allowance on previously   Decreases in allowance on previously      $()
(Some amounts may not reconcile due to rounding.)
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)$()Credit losses on securities where credit  Increases in allowance on previously  Decreases in allowance on previously     $()
(Some amounts may not reconcile due to rounding.)
(Dollars in millions)Corporate
Securities		Asset-Backed
Securities		Foreign
Corporate
Securities		Total
Beginning balance$()$()$()$()
Credit losses on securities where credit
losses were not previously recorded    
Increases in allowance on previously
impaired securities    
Decreases in allowance on previously
impaired securities    
Reduction in allowance due to disposals    
Balance, end of period$()$()$()$()
(Some amounts may not reconcile due to rounding.)
)$()$()()Credit losses on securities where creditlosses were not previously recorded  ()()Increases in allowance on previouslyimpaired securities    Decreases in allowance on previouslyimpaired securities    Reduction in allowance due to disposals    Balance, end of period()()$()$()
(Some amounts may not reconcile due to rounding.)
During the three months ended March 31, 2025, the Company sold fixed maturity securities - held to maturity with a net carrying amount of $ million, which had realized losses of $ million as part of the sale. The Company's decision to sell was due to significant credit deterioration of the issuer of the securities.
4.
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At March 31, 2025 and December 31, 2024, $ billion and $ billion, respectively, 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.
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 $ $ $ Obligations of U.S. States and political subdivisions    Corporate securities    Asset-backed securities    Mortgage-backed securitiesCommercial    Agency residential    Non-agency residential    Foreign government securities    Foreign corporate securities    Total fixed maturities - available for sale    Equity securities, fair value    
(Some amounts may not reconcile due to rounding.)
Fair Value Measurement Using
(Dollars in millions)December 31, 2024Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Assets:
Fixed maturities - available for sale
U.S. Treasury securities and obligations of U.S. government
agencies and corporations$ $ $ $ 
Obligations of U.S. States and political subdivisions    
Corporate securities    
Asset-backed securities    
Mortgage-backed securities
Commercial    
Agency residential    
Non-agency residential    
Foreign government securities    
Foreign corporate securities    
Total fixed maturities - available for sale    
Equity securities, fair value    
(Some amounts may not reconcile due to rounding.)
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 $ Total gains or (losses) (realized/unrealized)   ()  Transfers in/(out) of Level 3 and reclassification of   $ The amount of total gains or losses for the periodincluded in earnings (or changes in net assets)attributable to the change in unrealized gainsor losses relating to assets still held at $ 
(Some amounts may not reconcile due to rounding.)
  ) 
Total
 $ 
Total gains or (losses) (realized/unrealized)
 
 
()
Transfers in/(out) of Level 3 and reclassification of
 
 $ 
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
 $ 
(Some amounts may not reconcile due to rounding.)
There were transfers of assets in/(out) of Level 3 for the three months ended March 31, 2025.
Financial Instruments Disclosed, But Not Reported, at Fair Value
Certain financial instruments disclosed, but not reported, at fair value are excluded from the fair value hierarchy tables above. Fair values and valuation hierarchy of fixed maturity securities – held to maturity, senior notes and long-term subordinated notes can be found within Notes 3, 8 and 9 of the Notes to these consolidated financial statements, respectively. Short-term investments are stated at cost, which approximates fair value.
Exempt from Fair Value Disclosure Requirements
Certain financial instruments are exempt from the requirements for fair value disclosure, such as limited partnerships accounted for under the equity method and pension and other postretirement obligations. The Company’s investments in COLI policies are recorded at their cash surrender value and are therefore not required to be included in the tables above. See Note 3 of the Notes to these consolidated financial statements for details of investments in COLI policies.
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million and $ million of investments within other invested assets on the consolidated balance sheets as of March 31, 2025 and December 31, 2024, 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.
5.
 $ Less reinsurance recoverables on unpaid losses()()Net reserves beginning of period  Incurred related to:Current year  Prior years  Total incurred losses and LAE  Paid related to:Current year  Prior years  Total paid losses and LAE  Foreign exchange/translation adjustment ()Net reserves end of period  Plus reinsurance recoverables on unpaid losses  Gross reserves end of period$ $ 
(Some amounts may not reconcile due to rounding.)
billion and $ billion for the three months ended March 31, 2025 and 2024, respectively. Gross and net reserves increased for the three months ended March 31, 2025, reflecting an increase in underlying exposure due to earned premium growth, year over year, amounting to approximately $ million of current year attritional losses in 2025 which includes $ million of losses from the Washington D.C. aviation accident, compared to 2024, as well as an increase of $ million in 2025 current year catastrophe losses.
6.
reportable segments: Reinsurance and Insurance. The Reinsurance operation writes worldwide property and casualty reinsurance and specialty lines of business, on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies. Business is written in the U.S., Bermuda and Ireland offices, as well as through branches in Canada, Singapore, the United Kingdom (“U.K.”) and Switzerland. The Insurance operation writes property and casualty insurance directly and through brokers, including for surplus lines, and general agents within the U.S., Bermuda, Canada, Europe, Singapore and South America through its offices in the U.S., Bermuda, Canada, Chile, Colombia, Mexico, Singapore, the U.K., Ireland, and branches located in Australia, the U.K., the Netherlands, France, Germany, Italy and Spain. The segments are managed independently, but conform with corporate guidelines with respect to pricing, risk management, control of aggregate catastrophe exposures, capital, investments and support operations.
Our reportable segments each have executive leaders who are responsible for the overall performance of their respective segments and who are directly accountable to our chief operating decision maker (“CODM”), the Chief Executive Officer of Everest Group, Ltd., who is ultimately responsible for reviewing the business to assess performance, make operating decisions and allocate resources. We report the results of our operations consistent with the manner in which our CODM reviews the business.
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 $ $ $ Net written premiums    Premiums earned$ $ $ $ Incurred losses and LAE    Commission and brokerage    Other underwriting expenses    Underwriting gain (loss)$()$()$()$()Net investment income Net gains (losses) on investments()Corporate expenses()Interest, fee and bond issue cost amortization expense()Other income (expense)()Income (loss) before taxes$ 
(Some amounts may not reconcile due to rounding.)
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 $ $ $ Net written premiums    Premiums earned$ $ $ $ Incurred losses and LAE    Commission and brokerage    Other underwriting expenses    Underwriting gain (loss)$ $ $()$ Net investment income Net gains (losses) on investments()Corporate expenses()Interest, fee and bond issue cost amortization expense()Other income (expense) Income (loss) before taxes$ 
(Some amounts may not reconcile due to rounding.)
7.
billion, as well as two additional credit facilities denominated in British Pound Sterling and Euros, with total commitments of up to £ million and € million, respectively. The Company also has additional uncommitted letter of credit facilities of up to $ million which may be accessible via written request and corresponding authorization from the applicable lender. There is no guarantee that the uncommitted capacity will be available to us on a future date.
The terms and outstanding amounts for each facility are discussed below. See Note 10 of the Notes to these consolidated financial statements for collateral posted related to secured letters of credit.
Bermuda Re Wells Fargo Bilateral Letter of Credit Facility
Effective February 23, 2021, Everest Reinsurance (Bermuda) Ltd. (“Bermuda Re”) entered into a letter of credit issuance facility with Wells Fargo (the “Bermuda Re Wells Fargo Bilateral Letter of Credit Facility”). As of May 5, 2021, the agreement provides for an issuance of up to $ million of secured letters of credit. Effective June 10, 2024, the agreement was amended to extend the availability of committed issuance for .
 $ 12/31/2025$ $ 12/31/2025
(Some amounts may not reconcile due to rounding.)
Bermuda Re Citibank Letter of Credit Facility
Effective August 9, 2021, Bermuda Re entered into a letter of credit issuance facility with Citibank N.A. (the “Bermuda Re Citibank Letter of Credit Facility”). The Bermuda Re Citibank Letter of Credit Facility provides for the committed issuance of up to $ million of secured letters of credit. In addition, the facility provided for the uncommitted issuance of up to $ million, which may be accessible via written request by the Company and corresponding authorization from Citibank N.A. Effective December 13, 2023, the agreement was amended to extend the availability of committed issuance for an additional .
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 $ 9/23/2025$ $ 1/21/2025 12/1/2025 2/28/2025 12/31/2025 3/1/2025 1/21/2026 3/15/2025 2/28/2026 9/23/2025 3/1/2026 12/1/2025 3/15/2026 12/16/2025 8/15/2026 12/20/2025 12/16/2026 12/31/2025 12/20/2026 8/15/2026 12/31/2026Bermuda Re Citibank LOC Facility - Uncommitted  12/31/2025  12/31/2025 3/30/2029 12/30/2028 Total Bermuda Re Citibank LOC Facility$ $ $ $ 
(Some amounts may not reconcile due to rounding.)
Bermuda Re Bayerische Landesbank Bilateral Secured Credit Facility
Effective August 27, 2021, Bermuda Re entered into a letter of credit issuance facility with Bayerische Landesbank, an agreement (the “Bermuda Re Bayerische Landesbank Bilateral Secured Credit Facility”). The Bermuda Re Bayerische Landesbank Bilateral Secured Credit Facility provides for the committed issuance of up to $ million of secured letters of credit. Effective August 16, 2024, the Bermuda Re Bayerische Landesbank Bilateral Secured Credit Facility was amended to extend the availability of committed issuance for .
 $ 12/31/2025$ $ 12/31/2025
(Some amounts may not reconcile due to rounding.)
Bermuda Re Bayerische Landesbank Bilateral Unsecured Letter of Credit Facility
Effective December 30, 2022, Bermuda Re entered into a new additional letter of credit issuance facility with Bayerische Landesbank, New York Branch (the “Bermuda Re Bayerische Landesbank Bilateral Unsecured Letter of Credit Facility”). The Bermuda Re Bayerische Landesbank Bilateral Unsecured Letter of Credit Facility provides for the committed issuance of up to $ million of unsecured letters of credit and is fully and unconditionally guaranteed by Group, as Parent Guarantor.
 $ 12/31/2025$ $ 12/31/2025
(Some amounts may not reconcile due to rounding.)
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million sub-limit for the issuance of letters of credit (the “Bermuda Re Lloyd’s Bank Letter of Credit Facility”). This facility superseded the previous letter of credit issuance facility with Lloyd’s Bank that was effective August 18, 2023. The Bermuda Re Lloyd’s Bank Letter of Credit Facility provides for the committed issuance of up to $ million of unsecured letters of credit and is fully and unconditionally guaranteed by Group, as Parent Guarantor.  $ 12/31/2025$ $ 12/31/2025
(Some amounts may not reconcile due to rounding.)
Bermuda Re Barclays Bank Credit Facility
Effective November 3, 2021, Bermuda Re entered into a letter of credit issuance facility with Barclays Bank PLC, an agreement (the “Bermuda Re Barclays Credit Facility”). The Bermuda Re Barclays Credit Facility provides for the committed issuance of up to $ million of secured letters of credit. Effective October 30, 2024, the agreement was amended to extend the availability of the committed issuance for an additional .
 $ 12/31/2025$ $ 12/30/2025  12/31/2025Total Bermuda Re Barclays Bilateral Letter of Credit Facility$ $ $ $ 
(Some amounts may not reconcile due to rounding.)
Bermuda Re Nordea Bank Letter of Credit Facility
Effective November 21, 2022, Bermuda Re entered into a letter of credit issuance facility with Nordea Bank ABP, New York Branch (the “Nordea Bank Letter of Credit Facility”). The Bermuda Re Nordea Bank Letter of Credit Facility provides for the committed issuance of up to $ million of unsecured letters of credit, and subject to credit approval, uncommitted issuance of $ million for a maximum total facility amount of $ million.
 $ 12/31/2025$ $ 12/31/2025Nordea Bank Letter of Credit Facility - Uncommitted  12/31/2025  12/31/2025Total Nordea Bank ABP, NY LOC Facility$ $ $ $ 
(Some amounts may not reconcile due to rounding.)
Everest International Reinsurance, Ltd. Funds at Lloyds Syndicated Letter of Credit Facility
Effective October 30, 2024, Everest International entered into a letter of credit issuance facility with a syndicate of banks including Lloyds Bank plc, Commerzbank AG, London Branch and ING Bank N.V., London Branch (the “Funds at Lloyds Syndicated Letter of Credit Facility”). The Funds at Lloyds Syndicated Letter of Credit Facility provides for the committed issuance of up to £ million of unsecured letters of credit to support Everest Corporate Member Limited’s Funds at Lloyds requirements.
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 £ 11/1/2028£ £ 11/1/2028
(Some amounts may not reconcile due to rounding.)
Everest Reinsurance Company (Ireland), dac Commerzbank Letter of Credit Facility
Effective December 30, 2024, Everest Reinsurance Company (Ireland), dac (“Ireland Re”) entered into a letter of credit issuance facility with Commerzbank AG, New York Branch (the “Commerzbank Letter of Credit Facility”). The Commerzbank Letter of Credit Facility provides for the committed issuance of up to € million of unsecured letters of credit.
 € 12/31/2025€ € 12/31/2025
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.
, , of the Company, the trading plan entered into on August 9, 2024 (the “Williamson Trading Plan”), effective immediately. The Williamson Trading Plan was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act and provided for the sale, in an aggregate amount, of up to common shares of Company stock by Mr. Williamson’s broker through its expiry date after the close of trading on August 29, 2025.
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Other than as disclosed above, none of our directors or officers (as defined in Exchange Act Rule 16a-1(f)) , modified or a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as those terms are defined in Regulation S-K, Item 408, during the fiscal quarter ended March 31, 2025.
ITEM 6. EXHIBITS
Exhibit Index
Exhibit No.Description
*10.1
Employment agreement between Everest Global Services, Inc., Everest Group, Ltd. and James Williamson, dated March 26, 2025, incorporated herein by reference to Exhibit 10.1 of the Everest Group, Ltd. Form 8-K/A filed with the SEC on March 28, 2025
*10.2
31.1
31.2
32.1
101.INSXBRL Instance Document
101.SCHXBRL Taxonomy Extension Schema
101.CALXBRL Taxonomy Extension Calculation Linkbase
101.DEFXBRL Taxonomy Extension Definition Linkbase
101.LABXBRL Taxonomy Extension Labels Linkbase
101.PREXBRL Taxonomy Extension Presentation Linkbase
104Cover Page Interactive Data File (embedded within the Inline XBRL document)
_________________
* Management contract or compensatory plan or arrangement.
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Everest Group, Ltd.
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 Group, Ltd.
(Registrant)
/S/ MARK KOCIANCIC
Mark Kociancic
Executive Vice President and
Chief Financial Officer
(Duly Authorized Officer and Principal Financial Officer)
Dated: May 2, 2025
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