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What changed in Everest Group's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Everest Group's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+503 added−433 removedSource: 10-K (2026-02-26) vs 10-K (2025-02-27)

Top changes in Everest Group's 2025 10-K

503 paragraphs added · 433 removed · 367 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

114 edited+35 added−23 removed117 unchanged
Biggest changeThe syndicate is managed by a third-party managing agency. • Everest Compañia de Seguros Generales Chile S.A., a Chile based insurance company, is licensed to write insurance and reinsurance within Chile. • Everest Compañia de Seguros Generales Colombia S.A., a Colombia based insurance company and a direct subsidiary of Everest International, is licensed to write property and casualty business within Colombia. • Compañia de Seguros Generales Everest Mexico S.A. de C.V., a Mexico based insurance company, is licensed to write property and casualty business within Mexico. • Everest Insurance Company of Canada (“Everest Canada”), a Canadian insurance company and direct subsidiary of Holdings Ireland, is licensed to write property and casualty insurance in all Canadian provinces. • Everest Reinsurance Company, a Delaware reinsurance company and a direct subsidiary of Holdings, is a licensed property and casualty insurer and/or reinsurer in all 50 states, the District of Columbia, Puerto Rico and Guam and is authorized to conduct reinsurance business in Canada, Singapore and Brazil.
Biggest changeThe syndicate is internally managed by Everest Managing Agency Limited as of August 18, 2025. • Everest Compañia de Seguros Generales Chile S.A., a Chile based insurance company and a direct subsidiary of Group, is licensed to write property and casualty insurance and reinsurance business within Chile. • Everest Compañia de Seguros Generales Colombia S.A., a Colombia based insurance company and a direct subsidiary of Everest International, is licensed to write property and casualty insurance and reinsurance business within Colombia. • Compañia de Seguros Generales Everest Mexico S.A. de C.V., a Mexico based insurance company and an indirect subsidiary of Group , is licensed to write property and casualty insurance and reinsurance business within Mexico. • Everest Insurance Company of Canada (“Everest Canada”), a Canadian insurance company and direct subsidiary of Holdings Ireland, is licensed to write property and casualty insurance in all Canadian provinces. • Everest Re, a Delaware reinsurance company and a direct subsidiary of Holdings, is a licensed property and casualty insurer and/or reinsurer in all 50 states, the District of Columbia, Puerto Rico and Guam and is authorized to conduct reinsurance business in Canada, Singapore, India and Brazil. • Everest National Insurance Company (“Everest National”), a Delaware insurance company and a direct subsidiary of Everest Re, is licensed in all 50 states, the District of Columbia and Puerto Rico and is authorized to write property and casualty insurance on an admitted basis in the jurisdictions in which it is licensed.
Our Operations. The Company’s principal business, conducted through its Reinsurance and Insurance reportable segments, is the underwriting of reinsurance and insurance in the U.S., Bermuda and other international markets. Our global network of operations spans more than 100 countries across six continents.
Our Operations. The Company’s principal business, conducted through its Reinsurance and Insurance reportable segments, is the underwriting of reinsurance and insurance in the U.S., Bermuda and other international markets. Our global network spans more than 100 countries across six continents.
The Company’s underwriting strategies seek to capitalize on what we believe are our financial strength and capacity, global franchise, stable and experienced management team, diversified product and distribution offerings, underwriting expertise and disciplined approach, efficient and low-cost operating structure and effective enterprise risk management practices.
The Company’s underwriting strategies seek to capitalize on what we believe are our global franchise, financial strength and capacity, stable and experienced management team, diversified product and distribution offerings, underwriting expertise and disciplined approach, efficient and low-cost operating structure and effective enterprise risk management practices.
The new Other segment includes the results of our sports and leisure business sold in October 2024, consisting of policies written prior to the sale and polices renewed and certain new business written on the Company’s paper post-sale.
The Other segment includes the results of our sports and leisure business sold in October 2024, consisting of policies written prior to the sale and polices renewed and certain new business written on the Company’s paper post-sale.
Enterprise Risk Management. Everest underwrites and manages risk for its customers. As a global insurance and reinsurance business, we have an established Enterprise Risk Management (“ERM”) framework that is integrated into the day-to-day management of our businesses and operations.
Everest underwrites and manages risk for its customers. As a global insurance and reinsurance business, we have an established Enterprise Risk Management (“ERM”) framework that is integrated into the day-to-day management of our businesses and operations.
Led by their states of domicile, U.S. insurance companies are subject to periodic financial examination of their affairs, usually every three to five years. U.S. insurance companies are also subject to examinations by the various state insurance departments where they are licensed concerning compliance with applicable conduct of business regulations.
Periodic Examinations. Led by their states of domicile, U.S. insurance companies are subject to periodic financial examination of their affairs, usually every three to five years. U.S. insurance companies are also subject to examinations by the various state insurance departments where they are licensed concerning compliance with applicable conduct of business regulations.
Such licensing enables U.S. domestic ceding company clients to take credit for uncollateralized reinsurance receivables from Everest Re in their statutory financial statements. Everest Re is licensed as a property and casualty reinsurer in Canada. It is also authorized to conduct reinsurance business in Singapore and Brazil. Everest Re can also write reinsurance in other foreign countries.
Such licensing enables U.S. domestic ceding company clients to take credit for uncollateralized reinsurance receivables from Everest Re in their statutory financial statements. Everest Re is licensed as a property and casualty reinsurer in Canada. It is also authorized to conduct reinsurance business in India, Singapore and Brazil. Everest Re can also write reinsurance in other foreign countries.
Additionally, Ireland Re is registered as a reciprocal reinsurer in Delaware and New York. Ireland Insurance is licensed to write insurance for the European Union, European Economic Area and U.K. markets. Ireland Insurance is also considered an approved/eligible alien surplus lines insurer in all 50 states and the District of Columbia.
Additionally, Ireland Re is registered as a reciprocal reinsurer in Delaware, Illinois and New York. Ireland Insurance is licensed to write insurance for the European Union, European Economic Area and U.K. markets. Ireland Insurance is also considered an approved/eligible alien surplus lines insurer in all 50 states and the District of Columbia.
Under current Bermuda law through 2024, no income, withholding or capital gains taxes are imposed upon Group and its Bermuda subsidiaries. Non-Bermuda branches of Bermuda subsidiaries are subject to local taxes in the jurisdictions in which they operate. United States. Group’s U.S. subsidiaries conduct business and are subject to taxation in the United States.
Under Bermuda law through 2024, no income, withholding or capital gains taxes are imposed upon Group and its Bermuda subsidiaries. Non-Bermuda branches of Bermuda subsidiaries are subject to local taxes in the jurisdictions in which they operate. United States. The Group’s U.S. subsidiaries conduct business and are subject to taxation in the United States.
The Company does business in the following locations where it is subject to taxation by the local authorities: Australia, Belgium, Canada, Chile, Colombia, France, Germany, Ireland, Italy, Mexico, Netherlands, U.K., Singapore, Spain, and Switzerland. Available Information.
The Company does business in the following locations where it is subject to taxation by the local authorities: Australia, Belgium, Canada, Chile, Colombia, France, Germany, India, Ireland, Italy, Mexico, Netherlands, U.K., Singapore, Spain, and Switzerland. Available Information.
The rates and policy terms of reinsurance agreements are generally not subject to direct regulation by any governmental authority. The operations of Everest Re’s foreign branch offices in Canada and Singapore are subject to regulation by the insurance regulatory officials of those jurisdictions.
The rates and policy terms of reinsurance agreements are generally not subject to direct regulation by any governmental authority. The operations of Everest Re’s foreign branch offices in Canada, Singapore and India are subject to regulation by the insurance regulatory officials of those jurisdictions.
For selected financial information regarding these segments, see ITEM 8, “Financial Statements and Supplementary Data - Note 6 of Notes to Consolidated Financial Statements” and ITEM 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operation - Segment Results”. Reinsurance Segment .
For selected financial information regarding these segments, see ITEM 8, “Financial Statements and Supplementary Data - Note 7 of Notes to Consolidated Financial Statements” and ITEM 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operation - Segment Results”. Reinsurance Segment.
Reserves for Unpaid Property and Casualty Losses and LAE. Significant periods of time may elapse between the occurrence of an insured loss, the reporting of the loss to the insurer and the reinsurer, the payment of that loss by the insurer and subsequent payments to the insurer by the reinsurer.
Reserves for Unpaid Property and Casualty Losses and LAE. Significant periods of time may elapse between the occurrence of an insured loss, the reporting of the loss to the (re) insurer, the payment of that loss by the insurer and subsequent payments to the insurer by the reinsurer.
As long-term insurers, Bermuda Re and Everest Assurance are also unable to declare or pay a dividend to anyone who is not a policyholder unless, after payment of the dividend, the value of the assets in their long-term business fund, as certified by their approved actuary, exceeds their liabilities for long-term business by at least the $250,000 minimum solvency margin.
As long-term insurers, Bermuda Re and Everest Assurance are also unable to declare or pay a dividend to anyone who is not a policyholder unless, after payment of the dividend, the value of the assets in their long-term business fund, as certified by their approved actuary, exceeds their liabilities for long-term business by at least the $500,000 minimum solvency margin.
Additionally, rating organizations may change their rating methodology, which could have a material impact on our financial strength ratings. All of the below-mentioned ratings are continually monitored and revised, if necessary, by each of the rating agencies. The ratings presented in the following table were in effect as of December 31, 2024.
Additionally, rating organizations may change their rating methodology, which could have a material impact on our financial strength ratings. All of the below-mentioned ratings are continually monitored and revised, if necessary, by each of the rating agencies. The ratings presented in the following table were in effect as of December 31, 2025.
As a long-term insurer, Bermuda Re is required to maintain $250,000 in statutory capital separate from its Class 4 minimum statutory capital and surplus, to maintain long-term business funds, to separately account for this business and to have an approved actuary prepare a certificate concerning its long-term business assets and liabilities to be filed annually.
As a long-term insurer, Bermuda Re is required to maintain $500,000 in statutory capital separate from its Class 4 minimum statutory capital and surplus, to maintain long-term business funds, to separately account for this business and to have an approved actuary prepare a certificate concerning its long-term business assets and liabilities to be filed annually.
In addition, non-U.S. insurance companies and branches are subject to examination and review by regulators in their respective jurisdictions. In 2024, there were no reports of these examinations or reviews issued that contained any material findings or recommendations. NAIC Risk-Based Capital Requirements. The U.S.
In addition, non-U.S. insurance companies and branches are subject to examination and review by regulators in their respective jurisdictions. In 2025, there were no reports of these examinations or reviews issued that contained any material findings or recommendations. NAIC Risk-Based Capital Requirements. The U.S.
As part of the reserving process, insurers and reinsurers evaluate historical data and trends and make judgments as to the impact of various factors, such as legislative and judicial developments that may affect future claim amounts, changes in social and political attitudes that may increase loss exposures and inflationary and general economic trends.
As part of the reserving process, (re)insurers evaluate historical data and trends and make judgments as to the impact of various factors, such as legislative and judicial developments that may affect future claim amounts, changes in social and political attitudes that may increase loss exposures and inflationary and general economic trends.
This investment duration guideline is established and periodically revised by management, which considers economic and business factors, as well as the Company’s average duration of potential liabilities, which, at December 31, 2024, is estimated at approximately 4.0 years, based on the estimated payouts of underwriting liabilities using standard duration calculations.
This investment duration guideline is established and periodically revised by management, which considers economic and business factors, as well as the Company’s average duration of potential liabilities, which, at December 31, 2025, is estimated at approximately 4.0 years, based on the estimated payouts of underwriting liabilities using standard duration calculations.
Prior approval of the Bermuda Monetary Authority (the “BMA”) is required if Bermuda Re’s, Everest International’s or Everest Assurance’s dividend payments would exceed 25% of their respective prior year end statutory capital and surplus. At December 31, 2024, Bermuda Re, Everest International and Everest Assurance exceeded their solvency and liquidity requirements.
Prior approval of the Bermuda Monetary Authority (the “BMA”) is required if Bermuda Re’s, Everest International’s or Everest Assurance’s dividend payments would exceed 25% of their respective prior year end statutory capital and surplus. At December 31, 2025, Bermuda Re, Everest International and Everest Assurance exceeded their solvency and liquidity requirements.
Products The Insurance division writes property, casualty and specialty insurance products, which are aligned with the lines of business described within the Insurance Segment Overview.
Products The Insurance segment writes property, casualty and specialty insurance products, which are aligned with the lines of business described within the Insurance Segment Overview.
The Company and its insurance subsidiaries are subject to regulation under the insurance statutes of the various jurisdictions in which they conduct business, including all U.S. states, Canada, Singapore, Brazil, the U.K., Ireland, Chile Colombia, Mexico and Bermuda.
The Company and its insurance subsidiaries are subject to regulation under the insurance statutes of the various jurisdictions in which they conduct business, including Bermuda, all U.S. states, Canada, Singapore, Brazil, the U.K., Ireland, Chile Colombia, Mexico, India and Australia.
The majority of Everest National’s business is reinsured by its parent, Everest Reinsurance Company. • Everest Indemnity Insurance Company (“Everest Indemnity”), a Delaware insurance company and a direct subsidiary of Everest Reinsurance Company, writes excess and surplus lines insurance business in the U.S. on a non-admitted basis.
The majority of Everest National’s business is reinsured by its parent, Everest Re. • Everest Indemnity Insurance Company (“Everest Indemnity”), a Delaware insurance company and a direct subsidiary of Everest Re, writes excess and surplus lines insurance business in the U.S. on a non-admitted basis.
The majority of Everest Premier’s business is reinsured by its parent, Everest Reinsurance Company. • Everest Denali Insurance Company (“Everest Denali”), a Delaware insurance company and a direct subsidiary of Everest Reinsurance Company, is licensed to write property and casualty insurance in all 50 states and the District of Columbia.
The majority of Everest Premier’s business is reinsured by its parent, Everest Re. • Everest Denali Insurance Company (“Everest Denali”), a Delaware insurance company and a direct subsidiary of Everest Re, is licensed to write property and casualty insurance in all 50 states and the District of Columbia.
This class also covers property and liability exposures related to construction sites. • Professional Lines provides protection for losses arising from employment, practices and coverage of risks, such as director’s and officer’s liability, employment litigation liability, medical malpractice, professional indemnity, environmental liability, omission of insurance and cyber liability. • Credit and Surety provides protection for losses arising from insurance products, offering payments in the event of default from a borrower.
This class also covers property and liability exposures related to construction sites. • Professional Lines provides protection for losses arising from employment, practices and coverage of risks, such as director’s and officer’s liability, employment litigation liability, medical malpractice, professional indemnity, environmental liability, omission of insurance and cyber liability. 7 Table of Contents • Credit and Surety provides protection for losses arising from insurance products, offering payments in the event of default from a borrower.
On December 27, 2023, the Government of Bermuda enacted the Corporate Income Tax Act 2023 (“The 2023 Act”), which will apply a 15% corporate income tax to certain Bermuda businesses in fiscal years beginning on or after January 1, 2025.
On December 27, 2023, the Government of Bermuda enacted the Corporate Income Tax Act 2023 (the “2023 Act”), which will apply a 15% corporate income tax to certain Bermuda businesses in fiscal years beginning on or after January 1, 2025.
The Company believes that its ratings are important as they provide the Company’s customers and others with an independent assessment of the Company’s financial strength using a rating scale that provides for relative comparisons. Strong financial ratings are particularly important for reinsurance and insurance companies given that customers rely on a company to pay covered losses well into the future.
The Company believes that its ratings are important as they provide the Company’s customers and others with an independent assessment of the Company’s financial strength using a rating scale that provides for relative comparisons. 12 Table of Contents Strong financial ratings are particularly important for reinsurance and insurance companies given that customers rely on a company to pay covered losses well into the future.
Bermuda Re presently meets or exceeds all of the PRA’s solvency and capital requirements. U.S. domestic property and casualty insurers, including reinsurers, are subject to regulation by their states of domicile and by those states in which they are licensed. The regulation of reinsurers is typically focused on financial condition, investments, management and operation.
Bermuda Re presently meets or exceeds all of the PRA’s solvency and capital requirements. 16 Table of Contents U.S. domestic property and casualty insurers, including reinsurers, are subject to regulation by their states of domicile and by those states in which they are licensed. The regulation of reinsurers is typically focused on financial condition, investments, management and operation.
As a result, a highly rated company is generally preferred. Operating Subsidiary: A.M. Best (1) S&P (2) Moody's (3) Everest Reinsurance Company A+ (Superior) A+ (Strong) A1 (upper-medium) Everest Reinsurance (Bermuda) Ltd.
As a result, a highly rated company is generally preferred. Operating Subsidiary (1), (2) : A.M. Best (3) S&P (4) Moody's (5) Everest Reinsurance Company A+ (Superior) A+ (Strong) A1 (upper-medium) Everest Reinsurance (Bermuda) Ltd.
In addition to claims assessment, processing and payment, the Claims staff selectively conducts comprehensive claim audits of both specific claims and overall claim procedures at the offices of selected ceding companies. Some reinsurance claims are handled by third party claims service providers who have limited authority and are subject to oversight by the Company’s Claims staff.
In addition to claims assessment, processing and payment, the Claims staff selectively conducts comprehensive claim audits of both specific claims and overall claim procedures at the offices of selected ceding companies. Some reinsurance claims are handled by third party claims service providers who have 9 Table of Contents limited authority and are subject to oversight by the Company’s Claims staff.
Everest Indemnity is a Delaware domestic surplus lines insurer and is eligible to write insurance on a surplus lines basis in all 50 states, the District of Columbia and Puerto Rico.
Everest National is licensed in all 50 states, the District of Columbia and Puerto Rico. Everest Indemnity is a Delaware domestic surplus lines insurer and is eligible to write insurance on a surplus lines basis in all 50 states, the District of Columbia and Puerto Rico.
Certain of these U.S. states and foreign jurisdictions impose regulations regulating the ability of any person to acquire control of an insurance company authorized to do business in that jurisdiction without appropriate regulatory approval similar to those described above. 14 Table of Contents Dividends.
Certain of these U.S. states and foreign jurisdictions impose regulations regulating the ability of any person to acquire control of an insurance company authorized to do business in that jurisdiction without appropriate regulatory approval similar to those described above. Dividends.
The average durations of the fixed income portfolio at December 31, 2024 and 2023 were 3.1 years and 3.3 years, respectively. Financial Strength Ratings. The following table shows the current financial strength ratings of the Company’s operating subsidiaries as reported by A.M. Best, S&P and Moody’s.
The average durations of the fixed income portfolio at December 31, 2025 and 2024 were 3.4 years and 3.1 years, respectively. Financial Strength Ratings. The following table shows the current financial strength ratings of the Company’s operating subsidiaries as reported by A.M. Best, S&P and Moody’s.
This team approach to assessing the impact of climate-related risk for Everest, as well as our customers, ensures that we are most accurately and responsibly providing specialized coverage to our clients for climate and other environment-related risks. Insurance Holding Company Regulation.
This team approach to assessing the impact of climate-related risk for Everest, as well as our customers, ensures that we are most accurately and responsibly providing specialized coverage to our clients for climate and other environment-related risks. 14 Table of Contents Insurance Holding Company Regulation.
Bermuda Re’s operations in the U.K. are subject to regulation by the Prudential Regulation Authority (the 15 Table of Contents “PRA”) and the Financial Conduct Authority (the “FCA”). The PRA imposes solvency, capital adequacy, audit, financial reporting and other regulatory requirements on insurers transacting business in the U.K. The FCA regulates the conduct of insurers transacting business in the U.K.
Bermuda Re’s operations in the U.K. are subject to regulation by the Prudential Regulation Authority (the “PRA”) and the Financial Conduct Authority (the “FCA”). The PRA imposes solvency, capital adequacy, audit, financial reporting and other regulatory requirements on insurers transacting business in the U.K. The FCA regulates the conduct of insurers transacting business in the U.K.
Accordingly, as of December 31, 2024, the maximum amount that will be available for the payment of dividends by Everest Re without triggering the requirement for prior approval of regulatory authorities in connection with a dividend is $813 million. Insurance Regulation. Bermuda Re and Everest International are not admitted to do business in any jurisdiction in the United States.
Accordingly, as of December 31, 2025, the maximum amount that will be available for the payment of dividends by Everest Re without triggering the requirement for prior approval of regulatory authorities in connection with a dividend is $886 million. Insurance Regulation. Bermuda Re and Everest International are not admitted to do business in any jurisdiction in the United States.
Because some jurisdictions require a reinsurer to register in order to be an acceptable market for local insurers, Everest Assurance is registered as a foreign insurer and/or reinsurer in the following countries: Bolivia, Colombia, Chile, Ecuador, Guatemala, Mexico and Paraguay. Ireland Re is licensed to write non-life reinsurance for the European Union, European Economic Area and Swiss markets.
Because some jurisdictions require a reinsurer to register in order to be an acceptable market for local insurers, Everest Assurance is registered as a foreign insurer and/or reinsurer in the following countries: Bolivia, Colombia, Chile, Ecuador, Guatemala, Mexico and Paraguay. Ireland Re is licensed to write property and casualty reinsurance for the European Union, European Economic Area and Swiss markets.
Following is a summary of the Company’s principal operating subsidiaries: • Bermuda Re, a Bermuda insurance company and a direct subsidiary of Group, is registered in Bermuda as a Class 4 insurer and long-term insurer and is authorized to write both reinsurance and insurance property and casualty business.
Following is a summary of the Company’s principal operating subsidiaries: • Bermuda Re, a Bermuda insurance company and a direct subsidiary of Group, is registered in Bermuda as a Class 4 insurer and long-term insurer and is authorized to write both reinsurance and insurance property and casualty 1 Table of Contents business.
The majority of Everest Indemnity’s business is reinsured by its parent, Everest Reinsurance Company. • Everest Security Insurance Company (“Everest Security”), a Delaware insurance company and a direct subsidiary of Everest Reinsurance Company, is licensed to write property and casualty insurance on an admitted basis in Delaware, Georgia and Alabama.
The majority of Everest Indemnity’s business is reinsured by its parent, Everest Re. • Everest Security Insurance Company (“Everest Security”), a Delaware insurance company and a direct subsidiary of Everest Re, is licensed to write property and casualty insurance on an admitted basis in Delaware, Georgia, Alabama and Texas.
The ceding commission generally is based on the ceding company’s cost of acquiring the business being reinsured (such as commissions, premium taxes, assessments and miscellaneous administrative expenses, and may contain profit sharing provisions, 6 Table of Contents whereby the ceding commission is adjusted based on loss experience).
The ceding commission generally is based on the ceding company’s cost of acquiring the business being reinsured (such as commissions, premium taxes, assessments and miscellaneous administrative expenses, and may contain profit sharing provisions, whereby the ceding commission is adjusted based on loss experience).
Debt ratings are the rating agencies’ current assessment of the credit worthiness of an obligor with respect to a specific obligation. Instrument A.M.
Debt ratings are the rating agencies’ current assessment of the credit worthiness and outlook of an obligor with respect to a specific obligation. Instrument A.M.
The payment of dividends to Holdings by Everest Re is subject to limitations imposed by Delaware law. Generally, Everest Re may only pay dividends out of its statutory earned surplus, which was $8.1 billion at December 31, 2024, and only after it has given 10 days prior notice to the Delaware Insurance Commissioner.
The payment of dividends to Holdings by Everest Re is subject to limitations imposed by Delaware law. Generally, Everest Re may only pay dividends out of its statutory earned surplus, which was $8.9 billion at December 31, 2025, and only after it has given 10 days prior notice to the Delaware Insurance Commissioner.
Bermuda Re is also registered under the Act as a long-term insurer and is thereby authorized to write life and annuity business.
Bermuda Re is also registered under the Act as a Class C long-term insurer and is thereby authorized to write life and annuity business.
We focus on (re)insuring companies that effectively manage their own underwriting cycle through proper analysis and appropriate pricing of underlying risks and whose underwriting guidelines and performance are compatible with their and the Company’s objectives.
We focus on 3 Table of Contents (re)insuring companies that effectively manage their own underwriting cycle through proper analysis and appropriate pricing of underlying risks and whose underwriting guidelines and performance are compatible with their and the Company’s objectives.
Reserves are 10 Table of Contents further reviewed by Everest’s Chief Reserving Actuary and senior management. The objective of such process is to determine a single best estimate viewed by management to be the best estimate of its ultimate loss liability.
Reserves are further reviewed by Everest’s Chief Reserving Actuary and senior management. The objective of such process is to determine a single best estimate viewed by management to be the best estimate of its ultimate loss liability.
The main perils covered include hurricane, earthquake, flood, convective storm and fire. • Casualty Pro Rata business, which accounted for 25.3% of reinsurance gross written premiums, consists predominantly of contracts providing coverage to cedents for losses primarily arising from general liability, professional indemnity, product liability, workers' compensation, employer’s liability, aviation and auto liability from their underlying portfolio of policies at an agreed upon percentage for both premium and loss. • Casualty XOL business, which accounted for 12.4% of reinsurance gross written premiums, consists predominantly of contracts providing coverage to cedents for losses primarily arising from general liability, professional indemnity, product liability, workers' compensation, aviation and auto liability from their underlying portfolio of policies in excess of an agreed upon deductible up to a stated limit. • Financial Lines business, which accounted for 6.1% of reinsurance gross written premiums, consists predominantly of contracts providing coverage to cedents for losses arising from political risk, credit, surety, mortgage and alternative risk lines of business on both a pro rata and excess of loss basis.
The main perils covered include hurricane, earthquake, flood, convective storm and fire. • Casualty Pro Rata business, which accounted for 21.3% of reinsurance gross written premiums, consists predominantly of contracts providing coverage to cedents for losses primarily arising from general liability, professional indemnity, product liability, workers' compensation, employer’s liability, aviation and auto liability from their underlying portfolio of policies at an agreed upon percentage for both premium and loss. • Casualty XOL business, which accounted for 11.5% of reinsurance gross written premiums, consists predominantly of contracts providing coverage to cedents for losses primarily arising from general liability, professional indemnity, product liability, workers' compensation, aviation and auto liability from their underlying portfolio of policies in excess of an agreed upon deductible up to a stated limit. • Financial Lines business, which accounted for 6.9% of reinsurance gross written premiums, consists predominantly of contracts providing coverage to cedents for losses arising from political risk, credit, surety, mortgage and alternative risk lines of business on both a pro rata and excess of loss basis.
It is our goal to build skilled, talented, collaborative, inclusive teams and foster a sense of purpose and company culture rooted in a broad range of thought and experiences. As of February 1, 2025, the Company employed 3,037 persons. Management believes that colleague engagement is strong.
It is our goal to build skilled, talented, collaborative, inclusive teams and foster a sense of purpose and company culture rooted in a broad range of thought and experiences. As of February 1, 2026, the Company employed 3,064 persons. Management believes that colleague engagement is strong.
However, on January 15, 2025, the OECD issued Guidance related to “deferred tax assets arising from tax benefits provided by General Government” whereby it has restricted the utilization of those deferred tax benefits against the computation of its Pillar Two Global Minimum Taxes to approximately 20% of the originally calculated amounts and only for a grace period of two years through 2026.
However, on January 15, 2025, the OECD issued guidance related to “deferred tax assets arising from tax benefits provided by General Government” restricting the utilization of those deferred tax benefits against the computation of its Pillar Two Global Minimum Taxes to approximately 20% of the originally calculated amounts and only for a grace period of two years through 2026.
Everest Compañia de Seguros Generales Colombia S.A., a Colombia based insurance company and a direct subsidiary of Everest International, is licensed to write property and casualty business within Colombia. Compañia de Seguros Generales Everest Mexico S.A. de C.V., a Mexico based insurance company, is licensed to write property and casualty business within Mexico. Periodic Examinations.
Everest Compañia de Seguros Generales Colombia S.A., a Colombia based insurance company and a direct subsidiary of Everest International, is licensed to write property and casualty insurance and reinsurance business within Colombia. Compañia de Seguros Generales Everest Mexico S.A. de C.V., a Mexico based insurance company, is licensed to write property and casualty insurance and reinsurance business within Mexico.
Bermuda Re is also registered as a certified reinsurer in New York and Delaware and is registered as a reciprocal reinsurer in Delaware, Arizona, Arkansas, California, Colorado, Connecticut, Georgia, Illinois, Iowa, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New York, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island and Texas.
Bermuda Re is also registered as a certified reinsurer in New York and Delaware and is registered as a reciprocal reinsurer in Delaware, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Illinois, Iowa, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina and Texas.
The Insurance segment lines of business write a broad suite of tailored products and services, including: • Accident and Health business, which accounted for 7.3% of Insurance gross written premiums, consists predominantly of policies covering Participant Accident, Short-Term Medical and Medical Stop-Loss protection for employers with self-funded medical plans. • Specialty Casualty business, which accounted for 28.1% of Insurance gross written premiums, consists predominantly of policies covering General Liability (Premises/Operations and Products), Auto Liability and Umbrella/Excess Liability. • Other Specialty business, which accounted for 10.9% of Insurance gross written premiums, consists predominantly of policies covering specialty areas including, but not limited to, Surety, Trade Credit & Political Risk, Transactional Liability, Energy & Construction and Aviation. • Professional Liability business, which accounted for 17.2% of Insurance gross written premiums, consists predominantly of policies covering Directors & Officers Liability, Errors & Omissions, Cyber Liability and other ancillary financial lines products. • Property/Short-Tail business, which accounted for 29.0% of Insurance gross written premiums, consists predominantly of policies covering Property, Inland Marine and other short-tail lines. • Workers’ Compensation business, which accounted for 7.6% of Insurance gross written premiums, consists predominantly of policies covering Workers’ Compensation, including both guaranteed cost and loss sensitive product offerings.
The Insurance segment lines of business write a broad suite of tailored products and services, including: • Accident and Health business, which accounted for 9.6% of Insurance gross written premiums, consists predominantly of policies covering Participant Accident, Short-Term Medical and Medical Stop-Loss protection for employers with self-funded medical plans. • Specialty Casualty business, which accounted for 23.4% of Insurance gross written premiums, consists predominantly of policies covering General Liability (Premises/Operations and Products), Auto Liability and Umbrella/Excess Liability. • Other Specialty business, which accounted for 13.4% of Insurance gross written premiums, consists predominantly of policies covering specialty areas including, but not limited to, Surety, Trade Credit & Political Risk, Transactional Liability, Energy & Construction and Aviation. • Professional Liability business, which accounted for 17.3% of Insurance gross written premiums, consists predominantly of policies covering Directors & Officers Liability, Errors & Omissions, Cyber Liability and other ancillary financial lines products. • Property/Short-Tail business, which accounted for 29.8% of Insurance gross written premiums, consists predominantly of policies covering Property, Inland Marine and other short-tail lines. • Workers’ Compensation business, which accounted for 6.6% of Insurance gross written premiums, consists predominantly of policies covering Workers’ Compensation, including both guaranteed cost and loss sensitive product offerings.
Considering these objectives, the Company views its investment portfolio as having two components: (1) the investments needed to satisfy outstanding liabilities (i.e., its core fixed maturities portfolio) and (2) investments funded by the Company’s shareholders’ equity. 11 Table of Contents For the portion needed to satisfy global outstanding liabilities, the Company generally invests in fixed maturities with strong average credit quality.
Considering these objectives, the Company views its investment portfolio as having two components: (1) the investments needed to satisfy outstanding liabilities (i.e., largely its core fixed maturities portfolio) and (2) investments funded by the Company’s shareholders’ equity. For the portion needed to satisfy global outstanding liabilities, the Company generally invests in fixed maturities with strong average credit quality.
Our Reinsurance segment is comprised of property and casualty reinsurance and specialty lines of business on both a treaty, facultative and large corporate risk basis, including: • Property Pro Rata business, which accounted for 34.5% of reinsurance gross written premiums, consists predominantly of contracts providing coverage to cedents for property damage and related losses, which may include business interruption and other non-property losses, resulting from natural or man-made perils arising from their underlying portfolio of policies at an agreed upon percentage for both premium and loss. • Property Non-Catastrophe Excess of Loss (“XOL”) business, which accounted for 5.2% of reinsurance gross written premiums, consists predominantly of contracts providing coverage to cedents for a portion of property damage and related losses, which may include business interruption and other non-property losses, resulting from natural or man-made perils in excess of an agreed upon deductible up to a stated limit. • Property Catastrophe XOL business, which accounted for 16.5% of reinsurance gross written premiums, consists predominantly of contracts providing coverage to cedents for a portion of property damage and related losses, which may include business interruption and other non-property losses, resulting from catastrophic losses, in excess of an agreed upon deductible up to a stated limit.
Our Reinsurance segment is comprised of property and casualty reinsurance and specialty lines of business on both a treaty, facultative and large corporate risk basis, including: • Property Pro Rata business, which accounted for 36.3% of reinsurance gross written premiums, consists predominantly of contracts providing coverage to cedents for property damage and related losses, which may include business interruption and other non-property losses, resulting from natural or man-made perils arising from their underlying portfolio of policies at an agreed upon percentage for both premium and loss. 6 Table of Contents • Property Non-Catastrophe Excess of Loss (“XOL”) business, which accounted for 5.7% of reinsurance gross written premiums, consists predominantly of contracts providing coverage to cedents for a portion of property damage and related losses, which may include business interruption and other non-property losses, resulting from natural or man-made perils in excess of an agreed upon deductible up to a stated limit. • Property Catastrophe XOL business, which accounted for 18.3% of reinsurance gross written premiums, consists predominantly of contracts providing coverage to cedents for a portion of property damage and related losses, which may include business interruption and other non-property losses, resulting from catastrophic losses, in excess of an agreed upon deductible up to a stated limit.
As consideration for entering into the retrocession treaty, Bermuda Re transferred cash of $140.3 million, an amount equal to the net loss reserves as of the closing date. Of the $140.3 million of net loss reserves retroceded, $100.5 million were related to A&E business.
As consideration for entering into the retrocession treaty, Bermuda Re transferred cash of $140 million, an amount equal to the net loss reserves as of the closing date. Of the $140 million of net loss reserves retroceded, $101 million were related to A&E business.
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.
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 5 Table of Contents brokerage and other underwriting expense ratios, which, respectively, divide incurred losses, commissions and brokerage and other underwriting expenses by premiums earned.
Everest Security recently converted from a Georgia corporation to a Delaware corporation effective August 1, 2023, and is licensed to write property and casualty insurance as an admitted insurance carrier in Delaware, Alabama and Georgia. Everest Denali is licensed in all 50 states and the District of Columbia.
Everest Security converted from a Georgia corporation to a Delaware corporation effective August 1, 2023, and is licensed to write property and casualty insurance as an admitted insurance carrier in Delaware, Alabama, Georgia and Texas. 17 Table of Contents Everest Denali is licensed in all 50 states and the District of Columbia.
Products Our reinsurance divisions provide treaty and facultative reinsurance on either a pro rata basis or an excess of loss basis to insurance companies across the globe. Our company provides products for the following lines of business: 7 Table of Contents • Property provides protection for property damage and other related losses covered in the underlying insurance policies.
Products Our Reinsurance segment provides treaty and facultative reinsurance on either a pro rata or an excess of loss basis to insurance companies across the globe. Our company provides products for the following lines of business: • Property provides protection for property damage and other related losses covered in the underlying insurance policies.
The majority of Everest Security’s business is reinsured by its parent, Everest Reinsurance Company. • Everest Premier Insurance Company (“Everest Premier”), a Delaware insurance company and a direct subsidiary of Everest Reinsurance Company, is licensed to write property and casualty insurance in all 50 states and the District of Columbia.
The majority of Everest Security’s business is reinsured by its parent, Everest Re. 2 Table of Contents • Everest Premier Insurance Company (“Everest Premier”), a Delaware insurance company and a direct subsidiary of Everest Re, is licensed to write property and casualty insurance in all 50 states and the District of Columbia.
By offering a meaningful and engaging colleague experience, we are focused on inspiring our global teams to underwrite opportunity in everything that they do. Culture.
By 4 Table of Contents offering a meaningful and engaging colleague experience, we are focused on inspiring our global teams to underwrite opportunity in everything that they do. Culture.
As Holdings has outstanding debt obligations, it is dependent upon dividends and other permissible payments from its operating subsidiaries to enable it to meet its debt and operating expense obligations and to pay dividends.
As Holdings has outstanding debt obligations, it is dependent upon dividends and other permissible 15 Table of Contents payments from its operating subsidiaries to enable it to meet its debt and operating expense obligations and to pay dividends.
It also includes run-off asbestos and environmental exposures, certain discontinued insurance programs primarily written prior to 2012 and certain discontinued insurance and reinsurance coverage classes. The Other segment does not generally sell insurance or reinsurance products but is responsible for the management of existing policies and settlement of related losses.
It also includes run-off asbestos and environmental exposures, certain discontinued insurance programs primarily written prior to 2012 and certain discontinued insurance and reinsurance coverage classes. The Other segment does not generally sell insurance or reinsurance products but is responsible for the management of existing policies and settlement of related losses. These segment presentation changes have been reflected retrospectively.
(2) S&P Financial Strength Ratings Scale: D (Payment Default) to AAA (Extremely Strong). Ratings from “AA” to “CCC” may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories. 12 Table of Contents (3) Moody’s Financial Strength Ratings Scale: C (Low Grade) to Aaa (High Grade).
(4) S&P Financial Strength Ratings Scale: D (Payment Default) to AAA (Extremely Strong). Ratings from “AA” to “CCC” may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories. (5) Moody’s Financial Strength Ratings Scale: C (Low Grade) to Aaa (High Grade).
S&P affirmed all ratings on January 28, 2025, and changed the outlook from stable to negative. Moody’s states that an “A1” rating is assigned to companies that, in their opinion, offer upper-medium grade security and are subject to low credit risk. Moody’s affirmed these ratings on May 17, 2024, with a stable outlook.
S&P affirmed all ratings on January 28, 2025, and changed the outlook from stable to negative. Moody’s states that an “A1” rating is assigned to companies that, in their opinion, offer upper-medium grade security and are subject to low credit risk. Moody’s affirmed these ratings on October 28, 2025, and revised the outlook from stable to negative.
In addition, we also compete with new companies and existing companies that move into the insurance industry. Competitors sell through various distribution channels and business models, across a broad array of product lines and with a high level of variation regarding geographic, marketing and customer segmentation. 9 Table of Contents Claims.
In addition, we also compete with new companies and existing companies that move into the insurance industry. Competitors sell through various distribution channels and business models, across a broad array of product lines and with a high level of variation regarding geographic, marketing and customer segmentation. Human Capital Management.
Through our direct and indirect subsidiaries operating in the U.S. and internationally, we serve a diverse group of clients worldwide, providing what we believe are extensive product and distribution capabilities, a strong balance sheet, an innovative culture and access to world-class talent. At December 31, 2024, we had shareholders’ equity of $13.9 billion and total assets of $56.3 billion.
Through our direct and indirect subsidiaries operating in the U.S. and internationally, we serve a diverse group of clients worldwide, providing what we believe are extensive product and distribution capabilities, a strong balance sheet, an innovative culture and access to world-class talent. At December 31, 2025, we had shareholders’ equity of $15.5 billion and total assets of $62.5 billion.
The majority of Everest Denali’s business is reinsured by its parent, Everest Reinsurance Company. 2 Table of Contents • Everest International Assurance, Ltd. (“Everest Assurance”), a Bermuda company and a direct subsidiary of Holdings is registered in Bermuda as a Class 3A general business insurer and as a Class C long-term insurer.
The majority of Everest Denali’s business is reinsured by its parent, Everest Re. • Everest International Assurance, Ltd. (“Everest Assurance”), a Bermuda company and a direct subsidiary of Everest Re is registered in Bermuda as a Class 3A general business insurer and as a Class C long-term insurer.
Reinsurance business written directly through the broker reinsurance market represented $11.7 billion or 90.5% of the segment’s premium and $1.2 billion or 9.5% was written directly with ceding companies.
Reinsurance business written directly through the broker reinsurance market represented $11.6 billion or 90.2% of the segment’s premium and $1.3 billion or 9.8% was written directly with ceding companies.
These products are written directly, as well as through brokers, including for surplus lines and general agents within the U.S., Bermuda, Canada, Europe, Singapore and South America through offices in the U.S., Bermuda, Canada, Chile, Singapore, the U.K., Ireland and branches located in the U.K., the Netherlands, France, Germany, Italy and Spain. Competition The global insurance market is highly competitive.
These products are written directly, as well as through brokers, including for surplus lines and general agents within the U.S., Bermuda, Canada, Europe, Singapore and South America through offices in the U.S., Bermuda, Canada, Chile, Singapore, the U.K., Ireland and branches located in the U.K., the Netherlands, France, Germany, Italy and Spain. Claims.
National Association of Insurance Commissioners (“NAIC”) has developed a formula to measure the statutory minimum amount of capital required for a property and casualty insurance company to support its overall business operations in light of its size and risk profile.
National Association of Insurance Commissioners (“NAIC”) has developed a formula to measure the statutory minimum amount of capital required for a property and casualty insurance company to support its overall business operations in light of its size and risk profile. The major categories of a company’s risk profile are its asset risk, credit risk and underwriting risk.
Best affirmed these ratings on July 19, 2024, with a stable outlook. S&P states that the “A+”/ “A” ratings are assigned to those insurance companies which, in its opinion, have strong financial security characteristics with respect to their ability to pay under their insurance policies and contracts in accordance with their terms.
Best affirmed these ratings on October 29, 2025, and revised the outlook from stable to negative. S&P states that the “A+”/ “A” ratings are assigned to those insurance companies which, in its opinion, have strong financial security characteristics with respect to their ability to pay under their insurance policies and contracts in accordance with their terms.
The ERC meets at least quarterly and is comprised of the following senior executives: Chief Executive Officer, Chief Financial Officer, General Counsel, Chief Operating Officer, Reinsurance Chief Underwriting Officer, Insurance Chief Underwriting Officer, Chief Transformation, Innovation and Operations Leader, Chief Reserving Actuary and Chief Risk Officer.
The ERC meets at least quarterly and is comprised of the following senior executives: Chief Executive Officer, Chief Financial Officer, General Counsel, Group Chief Underwriting Officer, Reinsurance Chief Underwriting Officer, Insurance Chief Underwriting Officer, Global Operations Executive, Chief Executive of Legacy Operations, Chief Reserving Actuary and Chief Risk Officer.
As part of our global inclusion, culture and engagement efforts, our mission is to help foster an environment that attracts, retains and develops the best talent; prioritizes people, their life experiences and perspectives; and serves as a conduit to senior management to promote measurable company-wide engagement. We look to seize opportunities to celebrate our culture and lift one another up.
As part of our global inclusion, culture and engagement efforts, our mission is to help foster an environment that attracts, retains and develops the best talent; prioritizes people, their life experiences and perspectives; and serves as a conduit to senior management to promote measurable company-wide engagement. Segments Overview.
Below this threshold are four distinct action levels at which an insurer’s domiciliary state regulator can intervene with increasing degrees of authority over an insurer as the ratio of adjusted surplus to RBC decreases. The mildest intervention requires an insurer to submit a plan of appropriate corrective actions. The most severe action requires an insurer to be rehabilitated or liquidated.
If this ratio is above a minimum threshold, no action is necessary. Below this threshold are four distinct action levels at which an insurer’s domiciliary state regulator can intervene with increasing degrees of authority over an insurer as the ratio of adjusted surplus to RBC decreases. The mildest intervention requires an insurer to submit a plan of appropriate corrective actions.
Best Financial Strength Ratings Scale: D (Poor) to A+ (Superior). Each financial strength rating category from A to C includes a rating notch to reflect a graduation of financial strength within the category. A rating notch is expressed with either a second plus (+) or a minus (-).
This rating was affirmed as of September 25, 2025. (3) A.M. Best Financial Strength Ratings Scale: D (Poor) to A+ (Superior). Each financial strength rating category from A to C includes a rating notch to reflect a graduation of financial strength within the category. A rating notch is expressed with either a second plus (+) or a minus (-).
They are an expression of our culture and an integral part of how we work. • Our Colleague Behaviors define how we operate and interact with each other no matter our location, level or function: Respect Everyone. Pursue Better. Lead by Example. Own our Outcomes.
They are an expression of our culture and an integral part of how we work. • Our Colleague Behaviors define how we operate and interact with each other no matter our location, level or function: Respect Everyone. Pursue Better. Lead by Example. Own our Outcomes. Win Together. • The Company has embedded these behaviors within colleague programs and practices globally.
Because some jurisdictions require a reinsurer to register in order to be an acceptable market for local insurers, Everest Re is registered as a foreign insurer and/or reinsurer in the following countries: Bolivia, Brazil, Chile, China, Colombia, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, India, Mexico, Nicaragua, Panama, Paraguay, the Philippines, Singapore and Venezuela. 16 Table of Contents Everest National is licensed in all 50 states, the District of Columbia and Puerto Rico.
Because some jurisdictions require a reinsurer to register in order to be an acceptable market for local insurers, Everest Re is registered as a foreign insurer and/or reinsurer in the following countries: Bolivia, Brazil, Canada, Chile, China, Colombia, Dominican Republic, Ecuador, Egypt, El Salvador, Guatemala, Honduras, India, Mexico, Nicaragua, Panama, Paraguay, the Philippines, Singapore and Venezuela.
The Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, proxy statements and amendments to those reports are available free of charge through the Company’s website at http://www.everestglobal.com, as soon as reasonably practicable after such reports are electronically filed with the U.S. Securities and Exchange Commission (the “SEC”).
The Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, proxy statements and amendments to those reports are available free of charge through the Company’s website at www.everestglobal.com, as soon as reasonably practicable after such reports are electronically filed with the SEC. You may also access this information at the SEC’s website (www.sec.gov).
In 2024, the Company had gross written premiums of $18.2 billion with approximately 71.0% representing Reinsurance and 27.9% representing Insurance with the remaining 1.1% of gross written premium coming from our “Other” operating segment.
In 2025, the Company had gross written premiums of $17.7 billion with approximately 72.4% representing Reinsurance and 27.1% representing Insurance with the remaining 0.5% of gross written premium coming from our “Other” operating segment.
Segments Overview. The Company conducts business through two reportable segments, Reinsurance and Insurance, which are managed as autonomous units, and key strategic decisions are based on the aggregate operating results and projections for the two business segments.
As of December 31, 2025, the Company managed its business through two reportable segments, Reinsurance and Insurance. Key strategic decisions are based on the aggregate operating results and projections for the two business segments.
As of December 31, 2024, Everest International had shareholder’s equity of $1.7 billion. • Ireland Re, an Ireland reinsurance company and an indirect subsidiary of Group, is licensed to write non-life reinsurance, both directly and through brokers, for the London and European markets through its Ireland office as well as through its Zurich branch. 1 Table of Contents • Ireland Insurance, an Ireland insurance company and an indirect subsidiary of Group, is licensed to write insurance for the European markets through its Ireland office as well as through its branches in the U.K., the Netherlands, Spain, France, Germany and Italy.
Branch, Ireland Re and Ireland Insurance. • Ireland Re, an Ireland reinsurance company and an indirect subsidiary of Group, is licensed to write property and casualty reinsurance, both directly and through brokers, for the London and European markets through its Ireland office as well as through its Zurich branch. • Ireland Insurance, an Ireland insurance company and an indirect subsidiary of Group, is licensed to write insurance for the European markets through its Ireland office as well as through its branches in the U.K., the Netherlands, Spain, France, Germany and Italy.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThe percentage of business that we reinsure may vary considerably from year to year, depending on our view of the relationship between cost and expected benefit for the contract period. 2024 2023 2022 2021 2020 Percentage of ceded written premiums to gross written premiums 13.3 % 11.5 % 11.5 % 12.3 % 13.0 % The effects of emerging claim and coverage issues on our business are uncertain.
Biggest changeThe percentage of business that we reinsure may vary considerably from year to year, depending on our view of the relationship between cost and expected benefit for the contract period. 2025 2024 2023 2022 2021 Percentage of ceded written premiums to gross written premiums 12.4 % 13.3 % 11.5 % 11.5 % 12.3 % If we are unable to or choose not to renew our current reinsurance or retrocessional reinsurance or purchase new or replacement coverage on favorable terms or at all, the amount of business we are willing to write may be limited or our protection from losses due to large loss events may be materially reduced and our net income could be materially reduced. 21 Table of Contents The failure to accurately assess underwriting risk and establish adequate premium rates could reduce our net income or result in a net loss.
In connection with any investment decision with respect to our securities, you should carefully consider the following risk factors, as well as the other information contained in this report and our other filings with the SEC. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also impair our business operations.
In connection with any investment decision with respect to our securities, you should carefully consider the following risk factors, as well as the other information contained in this report and our other SEC filings. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also impair our business operations.
Examples of emerging claims and coverage issues include, but are not limited to: • judicial expansion of policy coverage and a greater propensity to grant claimants more favorable amounts and the impact of new theories of liability; • plaintiffs targeting property and casualty insurers in purported class action litigation relating to claims-handling and other practices; • social inflation trends, including higher and more frequent claims, higher awards in favor of plaintiffs and increases in the value of claims due to third party funding; • medical developments that link health issues to particular causes, resulting in liability claims; • claims relating to unanticipated consequences of current or new technologies, including cyber security-related risks; and • claims relating to potentially changing climate conditions.
Examples of emerging claims and coverage issues include, but are not limited to: • judicial expansion of policy coverage and a greater propensity to grant claimants more favorable amounts and the impact of new theories of liability; • plaintiffs targeting property and casualty insurers in purported class action litigation relating to claims-handling and other practices; • social inflation trends, including higher and more frequent claims, higher awards in favor of plaintiffs and increases in the value of claims due to third-party litigation funding; • medical developments that link health issues to particular causes, resulting in liability claims; • claims relating to unanticipated consequences of current or new technologies, including cyber security-related risks; and • claims relating to potentially changing climate conditions.
Equity Risk. We have invested a portion of our investment portfolio in equity securities. The value of these assets fluctuates with changes in the markets. In times of economic weakness, the fair value of these assets may decline. We also invest in non-traditional investments which have different risk characteristics than traditional fixed income and equity securities.
We have invested a portion of our investment portfolio in equity securities. The value of these assets fluctuates with changes in the markets. In times of economic weakness, the fair value of these assets may decline. We also invest in non-traditional investments which have different risk characteristics than traditional fixed income and equity securities.
Our future capital requirements depend on many factors, including rating agency and regulatory requirements, the performance of our investment portfolio, our ability to write new business successfully, the frequency and severity of catastrophe events and our ability to establish premium rates and loss reserves at levels sufficient to cover losses.
Our future capital requirements depend on many factors, including rating agency and new regulatory requirements, the performance of our investment portfolio, our ability to write business successfully, the frequency and severity of catastrophe events and our ability to establish premium rates and loss reserves at levels sufficient to cover losses.
The Organization for Economic Co-operation and Development (“OECD”) and its member countries, including the United States, had been focusing for an extended period on issues related to the taxation of multinational corporations, such as the comprehensive plan set forth by the OECD to create an agreed set of international tax rules for preventing base erosion and profit shifting.
The Organization for Economic Co-operation and Development (the “OECD”) and its member countries, including the United States, had been focusing for an extended period on issues related to the taxation of multinational corporations, such as the comprehensive plan set forth by the OECD to create an agreed set of international tax rules for preventing base erosion and profit shifting.
For example, Group’s bye-laws contain the following provisions that could have an anti-takeover effect: • the total voting power of any shareholder owning more than 9.9% of the common shares will be reduced to 9.9% of the total voting power of the common shares; • the board of directors may decline to register any transfer of common shares if it has reason to believe that the transfer would result in: i.) any person that is not an investment company beneficially owning more than 5.0% of any class of the issued and outstanding share capital of Group, ii.) any person holding controlled shares in excess of 9.9% of any class of the issued and outstanding share capital of Group, or iii.) any adverse tax, regulatory or legal consequences to Group, any of its subsidiaries or any of its shareholders; • Group also has the option to redeem or purchase all or part of a shareholder’s common shares to the extent the board of directors determines it is necessary or advisable to avoid or cure any adverse or potential adverse consequences if: i.) any person that is not an investment company beneficially owns more than 5.0% of any class of the issued and outstanding share capital of Group, 26 Table of Contents ii.) any person holds controlled shares in excess of 9.9% of any class of the issued and outstanding share capital of Group, or iii.) share ownership by any person may result in adverse tax, regulatory or legal consequences to Group, any of its subsidiaries or any other shareholder.
For example, Group’s bye-laws contain the following provisions that could have an anti-takeover effect: • the total voting power of any shareholder owning more than 9.9% of the common shares will be reduced to 9.9% of the total voting power of the common shares; • the board of directors may decline to register any transfer of common shares if it has reason to believe that the transfer would result in: i. any person that is not an investment company beneficially owning more than 5.0% of any class of the issued and outstanding share capital of Group, ii. any person holding controlled shares in excess of 9.9% of any class of the issued and outstanding share capital of Group, or iii. any adverse tax, regulatory or legal consequences to Group, any of its subsidiaries or any of its shareholders; • Group also has the option to redeem or purchase all or part of a shareholder’s common shares to the extent the board of directors determines it is necessary or advisable to avoid or cure any adverse or potential adverse consequences if: 28 Table of Contents i. any person that is not an investment company beneficially owns more than 5.0% of any class of the issued and outstanding share capital of Group, ii. any person holds controlled shares in excess of 9.9% of any class of the issued and outstanding share capital of Group, or iii. share ownership by any person may result in adverse tax, regulatory or legal consequences to Group, any of its subsidiaries or any other shareholder.
We cannot predict the impact these laws and regulations will have on our business, financial condition or results of operations, but our insurance and reinsurance companies could incur additional costs resulting from compliance with such laws and regulations. If international tax laws change, our net income may be impacted.
We cannot predict the full impact these laws and regulations will have on our business, financial condition or results of operations, but our insurance and reinsurance companies could incur additional costs resulting from compliance with such laws and regulations. If international tax laws change, our net income may be impacted.
We are required to maintain reserves to cover our ultimate liability of losses and LAE for both reported and unreported claims. These reserves are only estimates of what we believe the ultimate settlement and administration of claims will cost based on facts and circumstances known to us and actuarial and statistical analysis.
We are required to maintain reserves to cover our ultimate liability of losses and LAE for both reported and unreported claims. These reserves are only estimates of what we believe the ultimate settlement and administration of claims will cost based on facts and circumstances known to us and incorporates actuarial and statistical analysis.
Additionally, under Delaware law, a corporation may be able to declare a transaction with an interested director to be void unless one of the following conditions is fulfilled: • the material facts as to the interested director’s relationship or interests are disclosed or are known to the board of directors and the board in good faith authorizes the transaction by the affirmative vote of a majority of the disinterested directors; • the material facts are disclosed or are known to the shareholders entitled to vote on the transaction and the transaction is specifically approved in good faith by the holders of a majority of the voting shares; or • the transaction is fair to the corporation as of the time it is authorized, approved or ratified. 27 Table of Contents Transactions with Significant Shareholders.
Additionally, under Delaware law, a corporation may be able to declare a transaction with an interested director to be void unless one of the following conditions is fulfilled: • the material facts as to the interested director’s relationship or interests are disclosed or are known to the board of directors and the board in good faith authorizes the transaction by the affirmative vote of a majority of the disinterested directors; • the material facts are disclosed or are known to the shareholders entitled to vote on the transaction and the transaction is specifically approved in good faith by the holders of a majority of the voting shares; or • the transaction is fair to the corporation as of the time it is authorized, approved or ratified. 29 Table of Contents Transactions with Significant Shareholders.
Interest Rate Risk. Most of our fixed income securities are classified as available for sale, and temporary changes in the fair value of these investments due to interest rate fluctuations are reflected as changes to our shareholders’ equity.
Most of our fixed income securities are classified as available for sale, and temporary changes in the fair value of these investments due to interest rate fluctuations are reflected as changes to our shareholders’ equity.
However, the Bermuda courts ordinarily would be expected to follow English 28 Table of Contents case law precedent, which would permit a shareholder to bring an action in the name of Group to remedy a wrong done to Group where the act complained of is alleged to be beyond the corporate power of Group or illegal or would result in the violation of Group’s memorandum of association or bye-laws.
However, the Bermuda courts ordinarily would be expected to follow English case law precedent, which would permit a shareholder to bring an action in the name of Group to remedy a wrong done 30 Table of Contents to Group where the act complained of is alleged to be beyond the corporate power of Group or illegal or would result in the violation of Group’s memorandum of association or bye-laws.
All such events may ultimately result in workforce unavailability among other operational impacts. STRATEGIC Our industry is highly competitive, and we may not be able to compete successfully in the future. Our industry is highly competitive and subject to pricing cycles that can be pronounced.
All such events may ultimately result in workforce unavailability among other operational impacts. STRATEGIC Our industry is highly competitive and rapidly evolving, and we may not be able to compete successfully in the future. Our industry is highly competitive and subject to pricing cycles that can be pronounced.
However, on January 15, 2025, the OECD issued Guidance related to “deferred tax assets arising from tax benefits provided by General Government” whereby it has restricted the utilization of those deferred tax benefits against the computation of its Pillar Two Global Minimum Taxes to approximately 20% of the originally calculated amounts and 31 Table of Contents only for a grace period of two years through 2026.
However, on January 15, 2025, the OECD issued guidance related to “deferred tax assets arising from tax benefits provided by General Government” whereby it has restricted the utilization of those deferred tax benefits against the computation of its Pillar Two Global Minimum Taxes to approximately 20% of the originally calculated amounts and only for a grace period of two years through 2026.
Enforcement of Civil Liabilities. Group is organized under the laws of Bermuda. Some of its directors and officers may reside outside the U.S. A substantial portion of our assets are or may be located in jurisdictions outside the United States.
Enforcement of Civil Liabilities. Group is organized under the laws of Bermuda. Some of its directors and officers may reside outside the United States. A substantial portion of our assets are or may be located in jurisdictions outside the United States.
The OECD has now agreed upon a broad framework for overhauling the taxation of multinational corporations that includes, among other things, profit reallocation rules (Pillar One) and a 15% global minimum corporate income tax rate (Pillar Two).
The OECD agreed upon a broad framework for overhauling the taxation of multinational corporations that includes, among other things, profit reallocation rules (Pillar One) and a 15% global minimum corporate income tax rate (Pillar Two).
To a lesser extent, Everest Re also has modest exposure to reinsurance contracts that contain provisions for obligatory funding of outstanding liabilities in the event of a rating agency downgrade. Those provisions would also generally be triggered if Everest Re’s rating fell below A.M. Best’s A- rating level. See also ITEM 1, “Financial Strength Ratings”.
To a lesser extent, Everest Re also has modest exposure to reinsurance contracts that contain provisions for obligatory funding of outstanding liabilities in the event of a rating agency downgrade. Those provisions would also generally be triggered if Everest Re’s rating fell below A.M. Best’s or S&P A- rating level. See also ITEM 1, “Financial Strength Ratings”.
This ability is subject to general economic, financial, competitive, regulatory and other factors beyond our control. Payment of dividends and advances and repayments from some of the operating subsidiaries are regulated by U.S. states and foreign insurance laws and regulatory restrictions, including minimum solvency and liquidity thresholds.
This ability is subject to general economic, financial, competitive, regulatory and other factors beyond our control. Payment of dividends and advances and repayments from 24 Table of Contents some of the operating subsidiaries are regulated by U.S. states and foreign insurance laws and regulatory restrictions, including minimum solvency and liquidity thresholds.
As a part of our ongoing analysis of our investment portfolio, we are required to assess current expected credit losses for all held-to-maturity securities and evaluate expected credit losses for available-for-sale securities when fair value is below amortized cost, which considers reasonable and supportable forecasts of future economic conditions in addition to information about past events and current conditions.
As a part of our ongoing analysis of our investment portfolio, we are required to assess and estimate current expected credit losses for all held-to-maturity securities and evaluate expected credit losses for available-for-sale securities when fair value is below amortized cost, which considers reasonable and supportable forecasts of future economic conditions and estimated future cash flows in addition to information about past events and current conditions.
If Bermuda Re is unable to obtain 30 Table of Contents or maintain a letter of credit facility on commercially acceptable terms or is unable to arrange for other types of security, its ability to operate its business may be severely limited.
If Bermuda Re is unable to obtain or maintain a letter of credit facility on commercially acceptable terms or is unable to arrange for other types of security, its ability to operate its business may be severely limited.
By way of illustration, during the past five calendar years, pre-tax catastrophe losses, net of reinsurance, were as follows: Calendar year: Pre-tax net catastrophe losses (Dollars in millions) 2024 $ 755 2023 470 2022 1,055 2021 1,135 2020 425 Our losses from future catastrophic events could exceed our projections.
By way of illustration, during the past five calendar years, pre-tax catastrophe losses, net of reinsurance, were as follows: Calendar year: Pre-tax net catastrophe losses (Dollars in millions) 2025 $ 726 2024 755 2023 470 2022 1,055 2021 1,135 Our losses from future catastrophic events could exceed our projections.
Consistent with market practice, much of our treaty reinsurance business allows the ceding company to terminate the contract or seek collateralization of our obligations in the event of a rating downgrade below a certain threshold. The termination provision would generally be triggered if a rating fell below A.M. Best’s A- rating level.
Consistent with market practice, much of our treaty reinsurance business allows the ceding company to terminate the contract or seek collateralization of our obligations in the event of a rating downgrade below a certain threshold. The termination provision would generally be triggered if a financial strength rating fell below A.M. Best’s or S&P A- rating level.
Such affiliated reinsurance transactions may subject the U.S. ceding companies to a Base Erosion and Anti-abuse Tax of 10% from 2019 to 2024 and 12.5% thereafter, which may exceed its regular income tax.
Such affiliated reinsurance transactions may subject the U.S. ceding companies to a Base Erosion and Anti-abuse Tax of 10% from 2019 to 2025 and 10.5% thereafter, which may exceed its regular income tax.
Because of the uncertainties that surround our estimates of loss and LAE reserves, we cannot be certain that ultimate losses and LAE payments will not exceed the estimates we make at any given time.
Because of the uncertainties that 20 Table of Contents surround our estimates of loss and LAE reserves, we cannot be certain that ultimate losses and LAE payments will not exceed the estimates we make at any given time.
According to S&P, Everest ranks among the top ten global property and casualty reinsurance groups. The worldwide net premium written by the Top 40 global reinsurance groups for both life and non-life business was estimated to be $318 billion in 2023 according to data compiled by S&P.
According to S&P, Everest ranks among the top ten global property and casualty reinsurance groups. The worldwide net premium written by the Top 40 global reinsurance groups for both life and non-life business was estimated to be $347 billion in 2024 according to data compiled by S&P.
In addition, new legislation, as well as proposed and final regulations may further limit the ability of the Company to execute alternative capital balancing transactions with unrelated parties. This would further impact our net income and effective tax rate. On August 16, 2022, the IRA was enacted.
In addition, new legislation, as well as proposed and final regulations, may further limit the ability of the Company to execute alternative capital balancing transactions with unrelated parties. This would further impact our net income and effective tax rate. On August 16, 2022, the Inflation Reduction Act of 2022 (the “IRA”) was enacted.
We may experience a disruption in business continuity as a result of pandemic and public health crises, geopolitical risks including armed conflict and civil unrest, terrorist events, natural disasters, cyber-attacks affecting technology services, as well as governmental, business and societal responses to such events, such as restrictions on public gatherings, sanctions, trade restrictions, increased unemployment and supply chain disruptions.
We may experience a disruption in business continuity as a result of pandemic and public health crises, geopolitical risks including armed conflict and civil unrest, terrorist events, natural disasters, cyber or other information technology related-incidents affecting technology services, supply-chain disruptions, as well as governmental, business and societal responses to such events, such as restrictions on public gatherings, sanctions, trade restrictions and increased unemployment.
If Bermuda Re defaults on any letter of credit that it obtains, it may be required to prematurely liquidate a substantial portion of its investment portfolio and other assets pledged as collateral. Regulatory and legislative developments related to cybersecurity, privacy, data protection and artificial intelligence could have an adverse impact on our business.
If Bermuda Re defaults on any letter of credit that it obtains, it may be required to prematurely liquidate a substantial portion of its investment portfolio and other assets pledged as collateral. Regulatory and legislative developments, as well as executive orders, related to cybersecurity, privacy, data protection and AI could have an adverse impact on our business.
For this purpose, “passive institutional investors” include all persons who are eligible, pursuant to Rule 13d-1(b)(1) under the Exchange Act to file a short-form statement on Schedule 13G, other than an insurance company or any parent holding company or control person of an insurance company.
For this purpose, “passive institutional investors” include all persons who are eligible, pursuant to Rule 13d-1(b)(1) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) to file a short-form statement on Schedule 13G, other than an insurance company or any parent holding company or control person of an insurance company.
These loss projections are approximations, reliant on a mix of quantitative and qualitative processes, and actual losses may exceed the projections by a material amount. 19 Table of Contents Unfavorable loss development may adversely affect our business, financial condition, results of operations or liquidity.
These loss projections are estimates, reliant on a mix of quantitative and qualitative processes, and actual losses may exceed the projections by a material amount. Unfavorable loss development may adversely affect our business, financial condition, results of operations or liquidity.
The ownership of common shares of Group by Everest Re Advisors, Ltd., a direct subsidiary of Group, may have an impact on securing approval of shareholder proposals that Group’s management supports. As of December 31, 2024, Everest Re Advisors, Ltd. (Bermuda) owned 9,719,971 or 18.5% of the outstanding common shares of Group.
The ownership of common shares of Group by Everest Re Advisors, Ltd., a direct subsidiary of Group, may have an impact on securing approval of shareholder proposals that Group’s management supports. As of December 31, 2025, Everest Re Advisors, Ltd. (Bermuda) owned 9,719,971 or 19.3% of the outstanding common shares of Group.
Changes to or turnover among senior management or key executives could also disrupt the Company’s strategic focus, operational capabilities and may impede our ability to act quickly and efficiently in executing our business strategy. Special considerations apply to our Bermuda operations.
Changes to or turnover among senior management or key executives could also disrupt the Company’s strategic focus, operational capabilities and may impede our ability to act quickly and efficiently in executing our business strategy.
Our operations are subject to business continuation risk. Across our global business centers, there is risk that our operations, systems or data, or those of third parties on whom we rely, may be disrupted.
Across our global business centers, there is risk that our operations, systems or data, or those of third parties on whom we rely, may be disrupted.
We do not believe that Bermuda Re has a permanent establishment in the U.S. If the IRS were to successfully assert that Bermuda Re did have income attributable to a permanent establishment in the U.S., Bermuda Re would be subject to U.S. tax only on that income. This would reduce our net income. Group.
We do not believe that Bermuda Re has a permanent establishment in the United States. If the IRS were to successfully assert that Bermuda Re did have income attributable to a permanent establishment in the United States., Bermuda Re would be subject to U.S. tax only on that income. This would reduce our net income. 34 Table of Contents Group.
Currently, all our Bermuda-based professional employees who require work permits have been granted permits by the Bermuda government that expire at various times between March 2025 and March 2030. We rely on our processes, people and systems to maintain our operations and manage the operational risks inherent to our business.
Currently, all of our Bermuda-based professional employees who require work permits have been granted permits by the Bermuda government that expire at various times between June 2027 and March 2030. 25 Table of Contents We rely on our processes, people and systems to maintain our operations and manage the operational risks inherent to our business.
The loss of the services of any key executive officer , the failure to successfully effectuate a permanent leadership transition or the inability to hire and retain other highly qualified personnel in the future, particularly those experienced in the property and casualty industry, could adversely affect our ability to conduct business.
The loss of the services of any key executive officer, the failure to successfully effectuate a permanent leadership transition or the inability to hire and retain other highly qualified personnel in the future could adversely affect our ability to conduct business.
The IDSML requires insurers, and other entities required to be licensed under state insurance laws, to comply with certain requirements, such as developing and maintaining a written information security program, conducting risk assessments and overseeing the data security practices of third-party vendors. The IDSML has now been adopted in 23 states.
The IDSML requires insurers, and other entities required to be licensed under state insurance laws, to comply with certain requirements, such as developing and maintaining a written information security program, conducting risk assessments and overseeing the data security practices of third-party vendors.
During the past five calendar years, the reserve refinement process resulted in a decrease to our pre-tax net income in 2024 and 2020 and resulted in an increase to our pre-tax net income in 2023, 2022 and 2021: Calendar year: Effect on pre-tax net income (Dollars in millions) 2024 $ 1,337 decrease 2023 5 increase 2022 1 increase 2021 9 increase 2020 401 decrease The difficulty in estimating our reserves is significantly more challenging as it relates to reserving for potential A&E liabilities.
During the past five calendar years, the reserve process resulted in a decrease to our pre-tax net income in 2025 and 2024 and resulted in an increase to our pre-tax net income in 2023, 2022 and 2021: Calendar year: Effect on pre-tax net income (Dollars in millions) 2025 $ 657 decrease 2024 1,337 decrease 2023 5 increase 2022 1 increase 2021 9 increase The difficulty in estimating our reserves is significantly more challenging as it relates to reserving for potential asbestos and environmental (“A&E”) liabilities.
We are exposed to unpredictable catastrophic events, including, but not limited to, weather-related and other natural catastrophes, as well as acts of terrorism and wars. The frequency and/or severity of catastrophic events may be impacted in the future by the continued effects of climate change.
We are exposed to unpredictable catastrophic events, including, but not limited to, weather-related and other natural catastrophes, as well as acts of terrorism, wars, pandemics, political instability and significant cyber or operational incidents. The frequency and/or severity of some catastrophic events may be impacted in the future by the continued effects of climate change.
The worldwide reinsurance and insurance businesses are highly competitive, as well as cyclical by product and market. These cycles, as well as other factors that influence aggregate supply and demand for property and casualty insurance and reinsurance products, are outside of our control.
Decreases in pricing for property and casualty reinsurance and insurance could reduce our net income. The worldwide reinsurance and insurance businesses are highly competitive, as well as cyclical by product and market. These cycles, as well as other factors that influence aggregate supply and demand for property and casualty insurance and reinsurance products, are outside of our control.
Our reporting currency is the U.S. dollar, and exchange rate fluctuations, especially relative to the U.S. dollar, may materially impact our results and financial position. In 2024, we wrote approximately 29.1% of our coverages in non-U.S. 23 Table of Contents currencies; as of December 31, 2024, we maintained approximately 22.7% of our investment portfolio in investments denominated in non-U.S. currencies.
Our reporting currency is the U.S. dollar, and exchange rate fluctuations, especially relative to the U.S. dollar, may materially impact our results and financial position. In 2025, we wrote approximately 31.7% of our coverages in non-U.S. currencies; as of December 31, 2025, we maintained approximately 26.9% of our investment portfolio in investments denominated in non-U.S. currencies.
As of December 31, 2024, 0.9% of our gross reserves were comprised of A&E reserves.
As of December 31, 2025, 0.6% of our gross reserves were comprised of A&E reserves.
Additionally, we cannot predict how legal, regulatory and/or social responses to concerns around global climate change and the resulting impact on various sectors of the economy may impact our business.
We cannot predict the impact that changing climate conditions, if any, may have on our results, operations or our financial condition. Additionally, we cannot predict how legal, regulatory and/or social responses to concerns around global climate change and the resulting impact on various sectors of the economy may impact our business.
Bermuda Re. The income of Bermuda Re is a sizable portion of our worldwide income from operations. We have established guidelines for the conduct of our operations that are designed to ensure that Bermuda Re is not engaged in the conduct of a trade or business in the U.S.
We have established guidelines for the conduct of our operations that are designed to ensure that Bermuda Re is not engaged in the conduct of a trade or business in the United States.
However, the insurance and reinsurance regulatory framework is subject to periodic legislative review and revision. In the past, there have been congressional and other initiatives in the United States regarding increased supervision and regulation of the insurance industry, including proposals to supervise and regulate reinsurers domiciled outside the United States.
In the past, there have been congressional and other initiatives in the United States regarding increased supervision and regulation of the insurance industry, including proposals to supervise and regulate reinsurers domiciled outside the United States.
If we are unable to or choose not to purchase reinsurance and transfer risk to the reinsurance markets, our net income could be reduced or we could incur a net loss in the event of unusual loss experience.
If we are unable to or choose not to purchase reinsurance and transfer risk to the reinsurance markets, our net income could be reduced or we could incur a net loss in the event of unusual loss experience. We purchase prospective reinsurance for our insurance and reinsurance operations in order to mitigate the volatility of losses on our financial results.
The 2017 Tax Cuts and Jobs Act (“TCJA”) was adopted to address incorporation by U.S. corporations in low-tax jurisdictions to obtain a competitive advantage over domestic corporations that are subject to the U.S. corporate income tax rate of 21%.
If United St ates ta x law changes, our net income may be impacted. The 2017 Tax Cuts and Jobs Act (the “TCJA”) was adopted to address incorporation by U.S. corporations in low-tax jurisdictions to obtain a competitive advantage over domestic corporations that are subject to the U.S. corporate income tax rate of 21%.
A 21 Table of Contents downgrade or withdrawal of any of these ratings could adversely affect our ability to market our reinsurance and insurance products, our ability to compete with other reinsurers and insurers and our ability to write new business, which in turn could impact our profitability and results.
Best, S&P and Moody’s has assigned a negative outlook to our financial strength ratings. A downgrade or withdrawal of any of these ratings could adversely affect our ability to market our reinsurance and insurance products, our ability to compete with other reinsurers and insurers and our ability to write new business, which in turn could impact our profitability and results.
The Pillar Two model rules have been enacted in several of the jurisdictions in which the Company and its subsidiaries operate, thus, the Company or its subsidiaries are liable to pay a top-up tax for any deficiency between the minimum tax rate of 15% and the effective tax rate per jurisdiction.
The Pillar Two model rules have been enacted in several of the jurisdictions in which the Company and its subsidiaries operate; thus, the Company or its subsidiaries are liable to pay a top-up tax for any deficiency between the minimum tax rate of 15% and the effective tax rate per jurisdiction. 33 Table of Contents Group and/or various Group companies may be subject to additional income taxes, which would reduce our net income.
Any losses incurred from these risks are also dependent on our clients’ and our third-party service providers' cybersecurity practices and defenses, as well as how policy terms and conditions interact with the evolving threat landscape. We are dependent on brokers and agents for business developments. We rely on brokers and agents.
Any losses incurred from these risks are also dependent on our clients’ and our third-party service providers' cybersecurity practices and defenses, as well as how contract terms and conditions interact with the evolving threat landscape which is out of our control.
Resulting losses could adversely affect our business, results of operations and financial condition. 24 Table of Contents We are subject to cybersecuri ty risks that could negatively impact our business operations. Cybersecurity threats and incidents have increased in recent years, heightening related risks.
Resulting losses could adversely affect our business, results of operations and financial condition. We are subject to cybersecuri ty risks that could negatively impact our business operations. Cybersecurity threats and incidents have increased in recent years, heightening related risks. AI technologies are quickly evolving and being adopted, which may also increase or intensify potential cybersecurity risks.
If the Bermuda Ministry of Finance amends The 2023 Act in response to this Guidance, the exact impact of any such amendments is uncertain but there is a risk that it results in a reduction in the Company's Deferred Tax Assets. Group and/or Bermuda Re may be subject to U.S. corporate income tax, which would reduce our net income.
If the Bermuda Ministry of Finance amends The 2023 Act in response to this guidance, the exact impact of any such amendments is uncertain but there is a risk that it results in a reduction in the Company's Deferred Tax Assets.
Exposure to cybersecurity risk is increasing systematically due to greater digital dependence and increased possible losses due to a catastrophic cybersecurity event. Cyber catastrophes are not bound by time or geographic limitations and cyber catastrophic perils do not have well-established definitions and fundamental physical properties.
Exposure to cybersecurity risk is increasing systematically due to greater digital dependence, emerging technologies such as AI and increased possible losses due to a catastrophic cybersecurity event. Cybersecurity incidents are not bound by time or geographic limitations. Related perils do not have well-established definitions and fundamental physical properties and may be engineered specifically to evade established loss mitigation controls.
Additionally, net investment income from fixed income investments that carry prepayment risk, such as mortgage-backed and other asset-backed securities, can differ from the income anticipated from those securities at the time of purchase. Credit Risk. Our investment portfolio is subject to the risk of loss due to default or deterioration in credit quality.
Additionally, net 23 Table of Contents investment income from fixed income investments that carry prepayment risk, such as mortgage-backed and other asset-backed securities, can differ from the income anticipated from those securities at the time of purchase. Credit Risk.
Regulatory challenges in the United States could adversely affect the ability of Bermuda Re to conduct business. Bermuda Re does not intend to be licensed or admitted as an insurer or reinsurer in any U.S. jurisdiction. Under current law, Bermuda Re generally will be permitted to reinsure U.S. risks from its office in Bermuda without obtaining those licenses.
Bermuda Re does not intend to be licensed or admitted as an insurer or reinsurer in any U.S. jurisdiction. Under current law, Bermuda Re generally will be permitted to reinsure U.S. risks from its office in Bermuda without obtaining those licenses. However, the insurance and reinsurance regulatory framework is subject to periodic legislative review and revision.
The failure of one or more of our reinsurers to honor their obligations to us in a timely fashion would impact our cash flow and reduce our net income and could cause us to incur a significant loss. Our investment values and investment income could decline due to changed conditions in the financial markets.
The failure of one or more of our reinsurers, including but not limited to the counterparties to the adverse development cover reinsurance agreements, to honor their obligations to us in a timely fashion would impact our cash flow and reduce our net income and could cause us to incur a significant loss.
In October 2017, the NAIC adopted the Insurance Data Security Model Law (“IDSML”), which was intended to establish the standards for data security and for the investigation and notification of data breaches applicable to insurance licensees in states adopting such law.
The NAIC”s Insurance Data Security Model Law (the “IDSML”), which established standards for data security and for the investigation and notification of data breaches applicable to insurance licensees has been adopted in 28 states.
As industry practices and legislative, regulatory, judicial, social, financial, technological and other environmental conditions change, unexpected and unintended issues related to claims and coverage may emerge. These issues may adversely affect our business by either extending coverage beyond our underwriting intent or by increasing the frequency and severity of claims.
The effects of emerging claim and coverage issues on our business are uncertain. As industry practices and legislative, regulatory, judicial, social, financial, technological and other environmental conditions change, unexpected and unintended issues related to claims and coverage may emerge.
Losses may result from, among other things, actual or alleged fraud; errors; or failure to document transactions properly, obtain proper internal authorization, comply with underwriting or other internal guidelines or comply with regulatory requirements.
Our processes, people and systems may not effectively identify or control all risks, and our employees and third-party agents may not effectively execute them. Losses may result from, among other things, actual or alleged fraud; errors; employee misconduct or failure to document transactions properly, obtain proper internal authorization, comply with underwriting or other internal guidelines or comply with regulatory requirements.
To date, no material fine, penalty or restriction has been imposed on us for failure to comply with any insurance law or regulation. As a result of the previous dislocation of the financial markets, the U.S. government implemented changes in the way the financial services industry is regulated. Some of these changes are also impacting the insurance industry.
As a result of the previous dislocation of the financial markets, the U.S. government implemented changes in the way the financial services industry is regulated. Some of these changes are also impacting the insurance industry. For example, the U.S.
In addition, certain state insurance regulators are developing or have developed their own regulations that may impose additional regulatory requirements relating to cybersecurity on insurance and reinsurance companies.
In addition, certain state insurance regulators are developing or have developed their own regulations that may impose additional regulatory requirements relating to cybersecurity on insurance and reinsurance companies. For example, the New York State Department of Financial Services has an applicable regulation pertaining to cybersecurity for all banking and insurance entities under its jurisdiction.
A significant portion of our investment portfolio consists of fixed income securities and smaller portions consist of equity securities and other investments. The fair value of our invested assets and associated investment income may fluctuate depending on various factors including the effects of economic events and conditions, governmental policies, changes in interest rates and credit spreads and market volatility.
The fair value of our invested assets and associated investment income may fluctuate depending on various factors including, but not limited to the effects of economic events and conditions; governmental policies; changes in interest rates, currency exchange rates, inflation and credit spreads; credit ratings; loss frequency and severity; and market volatility.
FINANCIAL A decline in our financial strength ratings could adversely affect our standing among cedents and broker partners and our ability to grow premiums and earnings. Our active insurance company subsidiaries currently hold financial strength ratings assigned by third-party rating agencies which assess and rate the claims paying ability and financial strength of insurers and reinsurers.
Our active insurance company subsidiaries currently hold financial strength ratings assigned by third-party rating agencies which assess and rate the claims paying ability and financial strength of insurers and reinsurers. Financial strength ratings are used by cedents, agents and brokers to assess the financial strength and credit quality of reinsurers and insurers. As noted above, each of A.M.
If we fail to accurately assess the risks we retain, we may fail to establish adequate premium rates or contract terms (i.e. limits, deductibles, etc.) to cover our losses and LAE. This could reduce our net income and even result in a net loss.
Our success depends on our ability to accurately assess the risks associated with the businesses on which the risk is retained. If we fail to accurately assess the risks we retain, we may fail to establish adequate premium rates or contract terms (i.e. limits, deductibles, etc.) to cover our losses and LAE.
If issuers of individual investments are unable to meet their obligations, investment income will be reduced and realized capital losses may arise. 22 Table of Contents We have exposure to counterparties through a variety of commercial transactions and arrangements, including reinsurance transactions and agreements with banks, hedge funds and other investment vehicles that expose us to credit risk in the event our counterparty fails to perform its obligations.
We have exposure to counterparties through a variety of commercial transactions and arrangements, including reinsurance transactions and agreements with banks, hedge funds, private funds and other investment vehicles that expose us to credit risk in the event a counterparty or an underlying issuer or borrower fails to perform its obligations. Equity Risk.
Delaware law also provides that dividends may not be paid out of net profits at any time when stated capital is less than the capital represented by the outstanding stock of all classes having a preference upon the distribution of assets. 29 Table of Contents Insurance laws and regulations restrict our ability to operate and any failure to comply with those laws and regulations could have a material adverse effect on our business .
Surplus is the amount by which the net assets of a corporation exceed its stated capital. Delaware law also provides that dividends may not be paid out of net profits at any time when stated capital is less than the capital represented by the outstanding stock of all classes having a preference upon the distribution of assets.
Premiums are established before actual losses are known, which may result in some underpricing if inflation rises more rapidly than expected, ultimately creating a deficiency that may impact our financial position. Measures taken by domestic or foreign governments could have effects on our business.
Premiums are established before actual losses are known, which may result in some underpricing if inflation rises more rapidly than expected, ultimately creating a deficiency that may impact our financial position. Higher inflation could lead to higher interest rates, which would negatively impact the value of our existing fixed income or other investments.
Any errors, omissions or misconduct by our employees or third-party agents in the execution of these processes could adversely affect our business, results of operations and financial condition. We rely on our processes, people and systems to maintain and execute our operations.
Any errors, omissions or misconduct by our employees or third-party agents in the execution of these processes could adversely affect our business, results of operations and financial condition. We seek to monitor and control our exposure to risks arising from these processes through an enterprise risk management framework, internal controls, management review and other processes.
The potential political, economic, military and social risks that can emerge from a nation's involvement in international affairs can manifest into elevated geopolitical risk. For financial institutions, there are direct and indirect effects that can result from these events, including effects to the growth of business, return in foreign investments, claims patterns and local operations.
For financial institutions, there are direct and indirect effects that can result from these events, including effects to the growth of business, return in foreign investments, claims patterns and local operations. Global economic conditions could adversely affect our business, results of operations or financial condition.
In some instances, these emerging issues may not become apparent for some time after we have issued the affected insurance policies. As a result, the full extent of liability under our insurance or reinsurance contracts may not be known for many years after issuance.
In some instances, these emerging issues may not become apparent for some time after we have issued the affected insurance policies.
For example, in the quarter ended December 31, 2024, the Company increased its loss reserves by $1.7 billion, pre-tax, primarily driven by unfavorable development in U.S. casualty insurance lines of business.
For example, for the year ended, December 31, 2025, the Company increased its loss reserves by $657 million, pre-tax and net of reinsurance, primarily driven by net unfavorable development on prior year reserves from elevated loss experience in excess casualty and U.S. liability lines primarily on accident years 2022-2024.
If any of these factors were to result in a decline in the demand for (re)insurance or an overall increase in (re)insurance capacity, our net income could decrease.
If any of these factors were to result in a decline in the demand for (re)insurance or an overall increase in (re)insurance capacity, our net income could decrease. Moreover, certain states have enacted laws that require a property and casualty insurer to participate in assigned risk plans, reinsurance facilities, joint underwriting associations and other residual market plans.
In addition to existing competitors, the entry of alternative capital 25 Table of Contents market products and new company formations provide additional sources of reinsurance and insurance capacity, which could reduce our market share. SHAREHOLDERS, LEGAL & REGULATION Applicable insurance laws may have an anti-takeover effect.
In addition to existing competitors, the entry of alternative capital market products and new company formations, such as Insurtech companies, provide additional sources of reinsurance and insurance capacity, which could reduce our market share and adversely affect our business, results of operations and financial condition.
Climate change and resulting changes in global temperatures, weather patterns, and sea levels may both increase the frequency and severity of natural catastrophes and the resulting losses in the future and impact our risk modeling assumptions. We cannot predict the impact that changing climate conditions, if any, may have on our results of operations or our financial condition.
Secondary perils, such as severe convective storms, may also become increasingly impactful. Climate change and resulting changes in global temperatures, weather patterns and sea levels may both increase the frequency and severity of natural catastrophes and the resulting losses in the future and impact our risk modeling assumptions.
An example of this is the expansion over time of the scope of insurers’ legal liability within the mass tort cases, particularly for A&E exposures discussed above. 20 Table of Contents Decreases in pricing for property and casualty reinsurance and insurance could reduce our net income.
In addition to such unanticipated events, we also face the unanticipated expansion of our exposures, particularly in long-tail liability lines. An example of this is the expansion over time of the scope of insurers’ legal liability within the mass tort cases, particularly for A&E exposures discussed above.
We utilize financial models to derive metrics and drive analysis to assist in decision making across key areas, such as pricing, underwriting, reserving, investment management, ceding business, capital allocation and risk management. These models may not operate properly, may contain incorrect information and errors and may rely on assumptions and projections that are inherently uncertain.
We utilize financial models to derive metrics and drive analysis to assist in decision making across key areas, such as pricing, underwriting, reserving, investment management, ceding business, capital allocation and risk management. These models incorporate numerous assumptions and forecasts about the future level of financial metrics, including interest rates, inflation, credit spreads and equity markets.
Our relationship with this distribution network is based on quality of underwriting, claim services, financial strength and other factors, which could weaken. Analytical models used in decision making could vary materially from actual results. As a financial services company, we are exposed to model risk.
Analytical models used in decision making and estimates, assumptions and valuations in these models could vary materially from actual results, which could have an adverse impact on the financial condition, results of operations and cash flows of the Company. As a financial services company, we are exposed to model risk.
The cybersecurity regulatory environment is evolving, in particular with respect to emerging technologies, such as artificial intelligence, and it is likely that the costs of complying with new or developing regulatory requirements will increase. We are not aware of a cybersecurity incident that materially affected the Company, including its business strategy, results of operations or financial condition.
While we are not aware of a cybersecurity incident that materially affected the Company, including its business strategy, results of operations or financial condition, a future cybersecurity incident could have a material impact on us.
We are subject to extensive and increasing regulation under U.S., state and foreign insurance laws.
Insurance laws and regulations restrict our ability to operate and any failure to comply with those laws and regulations could have a material adverse effect on our business. 31 Table of Contents We are subject to extensive and increasing regulation under U.S. federal, state and foreign insurance laws.
Group and/or various Group companies may be subject to additional income taxes, which would reduce our net income. If U.S. tax law changes, our net income may be impacted.
Group and/or Bermuda Re may be subje ct to U.S. corporate income tax, which would reduce our net income. Bermuda Re. The income of Bermuda Re is a sizable portion of our worldwide income from operations.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeCYBERSECURITY Cybersecurity Risk Management and Strategy 32 Table of Contents Everest has aligned and operationalized its cybersecurity program and controls to the National Institute of Standards and Technology (“NIST”) Cybersecurity Incident Response Framework to provide preventative, detective and responsive measures that are timely, comprehensive, systematic, and in alignment with industry standards, regulatory requirements, and the Company’s risk management framework.
Biggest changeITEM 1C. CYBERSECURITY Cybersecurity Risk Management and Strategy Everest has aligned and operationalized its cybersecurity program and controls with the National Institute of Standards and Technology (“NIST”) Cybersecurity Incident Response Framework to provide preventative, detective and responsive measures that are timely, comprehensive, systematic, and in alignment with industry standards, regulatory requirements, and the Company’s risk management framework.
As part of the Company’s cybersecurity program, Everest has established cross-functional teams with roles and responsibilities for cybersecurity incident response. The Company has a formal incident response escalation process, which involves a dedicated Security Operation Center (“SOC”) as well as a incident response team (“IRT”), to further escalate to senior management and the Board, as appropriate.
As part of the Company’s cybersecurity program, Everest has established cross-functional teams with roles and responsibilities for cybersecurity incident response. The Company has a formal incident response escalation process, which involves a dedicated Security Operation Center (“SOC”) as well as an incident response team (“IRT”), to further escalate to senior management and the Board, as appropriate.
Furthermore, the Company collaborates with industry associations, government and regulatory authorities, peer companies and external advisors to monitor the threat environment and to inform its cybersecurity practices. For the year ended December 31, 2024, Everest has not experienced any cybersecurity incident that materially affected the Company, including its business strategy, results of operations or financial conditions.
Furthermore, the Company collaborates with industry associations, government and regulatory authorities, peer companies and external advisors to monitor the threat environment and to inform its cybersecurity practices. For the year ended December 31, 2025, Everest has not experienced any cybersecurity incident that materially affected the Company, including its business strategy, results of operations or financial conditions.
Governance Cybersecurity threats present a persistent and dynamic threat to our entire industry. The Company views cybersecurity risk as an enterprise-wide concern that involves people, processes and technology. The Company’s Board, through its committees, referenced above in ITEM 1 “Business” - Enterprise Risk Management, has ultimate responsibility for risk oversight.
Governance Cybersecurity threats present a persistent and dynamic threat to our entire industry. The Company views cybersecurity risk as an enterprise-wide concern that involves people, processes and technology. The Company’s Board, through its committees, referenced above in ITEM 1, “Enterprise Risk Management”, has ultimate responsibility for risk oversight.
The Company also appointed a certified CISO who has significant public and private cybersecurity experience. The CISO is dedicated to assessing the Company’s data security risk, monitoring cyber threat intelligence and taking the steps 33 Table of Contents necessary to implement pertinent safeguards and protocols to manage the risk.
The Company also appointed a certified CISO who has significant public and private cybersecurity experience. The CISO is dedicated to assessing the Company’s data security risk, monitoring cyber threat intelligence and taking the steps necessary to implement pertinent safeguards and protocols to manage the risk.
In addition, the ERC, referenced above in ITEM 1 “Business” - Enterprise Risk Management, annually reviews the Company’s cyber exposure across all lines of business and security safeguards for privacy-protected data held by the Company.
In addition, the ERC, referenced above in ITEM 1, “Enterprise Risk Management”, annually reviews the Company’s cyber exposure across all lines of business and security safeguards for privacy-protected data held by the Company.
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Additionally, as compromised credentials and unauthorized access remain prevalent vectors for 35 Table of Contents cyberattacks, we have prioritized the advancement of our Identity and Access Management (IAM) protocols as a critical component of our cybersecurity strategy.
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We continue to modernize and strengthen access controls, password policies, multi-factor authentication, and offboarding processes, to ensure that access to sensitive data and systems is restricted to authorized personnel and necessary business functions for the time period needed.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeITEM 2. PROPERTIES Everest Re’s corporate offices are located in approximately 321,500 square feet of leased office space in Warren, New Jersey. Bermuda Re’s corporate offices are located in approximately 12,300 total square feet of leased office space in Hamilton, Bermuda. The Company’s 33 other locations occupy a total of approximately 335,300 square feet, all of which are leased.
Biggest changeITEM 2. PROPERTIES Everest Re’s corporate offices are located in approximately 321,500 square feet of leased office space in Warren, New Jersey. Bermuda Re’s corporate offices are located in approximately 12,300 total square feet of leased office space in 36 Table of Contents Hamilton, Bermuda.
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The Company’s 29 other locations occupy a total of approximately 332,100 square feet, all of which are leased.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changePurchases of Equity Securities by the Issuer and Affiliated Purchasers Issuer Purchases of Equity Securities (a) (b) (c) (d) Period Total Number of Shares (or Units) Purchased Average Price Paid per Share (or Unit) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs (1) January 1 - 31, 2024 154 $ 374.3245 — 1,228,908 February 1 - 29, 2024 45,250 $ 369.7883 — 1,228,908 March 1 - 31, 2024 101,438 $ 387.5345 90,291 1,138,617 April 1 - 30, 2024 40 $ 356.4350 — 1,138,617 May 1 - 31, 2024 174,202 $ 374.1937 173,718 964,899 June 1 - 30, 2024 42 $ 380.4150 — 964,899 July 1 - 31, 2024 — $ — — 964,899 August 1 - 31, 2024 208,144 $ 360.5101 208,039 756,860 September 1 - 30, 2024 69,623 $ 388.1102 64,421 692,439 October 1 - 31, 2024 — $ — — 692,439 November 1 - 30, 2024 3,449 $ 370.0066 — 692,439 December 1 - 31, 2024 — $ — — 692,439 Total 602,342 $ — 536,469 692,439 (1) On November 7, 2024, the Company’s Board approved an amendment to the share repurchase program authorizing the Company and/or its subsidiary Holdings, to purchase up to an additional 10.0 million shares to a current aggregate of 42.0 million of the Company’s shares (recognizing that the number of shares authorized for repurchase has been reduced by those shares that have already been purchased) in open market transactions, privately negotiated transactions or both.
Biggest changeSee ITEM 1, “Regulatory Matters - Dividends” and ITEM 8, “Financial Statements and Supplementary Data”- Note 18 of Notes to Consolidated Financial Statements. 37 Table of Contents Purchases of Equity Securities by the Issuer and Affiliated Purchasers Issuer Purchases of Equity Securities (a) (b) (c) (d) Period Total Number of Shares (or Units) Purchased (2) Average Price Paid per Share (or Unit) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs (1) January 1 - 31, 2025 — $ — — 10,692,439 February 1 - 28, 2025 276,667 $ 336.7723 247,128 10,445,311 March 1 - 31, 2025 352,698 $ 357.5636 326,872 10,118,439 April 1 - 30, 2025 69 $ 344.8114 — 10,118,439 May 1 - 31, 2025 509,392 $ 343.9679 508,763 9,609,676 June 1 - 30, 2025 72,568 $ 346.6925 72,120 9,537,556 July 1 - 31, 2025 87 $ 340.0975 — 9,537,556 August 1 - 31, 2025 70 $ 330.4174 — 9,537,556 September 1 - 30, 2025 1,028 $ 340.8210 — 9,537,556 October 1 - 31, 2025 80,621 $ 311.1641 80,376 9,457,180 November 1 - 30, 2025 838,964 $ 320.1009 835,626 8,621,554 December 1 - 31, 2025 325,295 $ 324.2029 323,878 8,297,676 Total 2,457,459 $ — 2,394,763 8,297,676 (1) On November 7, 2024, the Company’s Board approved an amendment to the share repurchase program authorizing the Company and/or its subsidiary Holdings, to purchase up to an additional 10.0 million shares resulting in an aggregate authority to purchase 42.0 million of the Company’s shares (recognizing that the number of shares authorized for repurchase has been reduced by those shares that have already been purchased) in open market transactions, share repurchase plans, privately negotiated transactions or a combination thereof.
Fiscal year ending December 31. Copyright© 2025 Standard & Poor's, a division of S&P Global. All rights reserved. ITEM 6. [RESERVED] 36 Table of Contents
Fiscal year ending December 31. Copyright© 2025 Standard & Poor's, a division of S&P Global. All rights reserved. ITEM 6. [RESERVED] 39 Table of Contents
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information. The common shares of Group trade on the NYSE under the symbol, “EG”. Number of Holders of Common Shares. The number of record holders of common shares as of February 1, 2025 was 1,012.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information. The common shares of Group trade on the NYSE under the symbol, “EG”. Number of Holders of Common Shares. The number of record holders of common shares as of February 1, 2026 was 1,191.
The Company declared and paid its quarterly cash dividend of $1.65 per share for the first quarter and second quarter of 2023, declared and paid its quarterly cash dividend of $1.75 per share for the third quarter of 2023 through the first quarter of 2024, and declared and paid its quarterly cash dividend of $2.00 per share for the remaining three quarters of 2024.
The Company declared and paid its quarterly cash dividend of $1.65 per share for the first quarter and second quarter of 2023, declared and paid its quarterly cash dividend of $1.75 per share for the third quarter of 2023 through the first quarter of 2024, and declared and paid its quarterly cash dividend of $2.00 per share for the second quarter of 2024 through the fourth quarter of 2025.
That number does not include the beneficial owners of shares held in “street” name or held through participants in depositories, such as The Depository Trust Company. 34 Table of Contents Dividend History and Restrictions.
That number does not include the beneficial owners of shares held in “street” name or held through participants in depositories, such as The Depository Trust Company. Dividend History and Restrictions. The Company’s Board has an established policy of declaring regular quarterly cash dividends and has paid a regular quarterly dividend in each quarter since the fourth quarter of 1995.
The payment of dividends to Group by Holdings and to Holdings by Everest Re is subject to Delaware regulatory restrictions and the payment of dividends to Group by Bermuda Re is subject to Bermuda insurance regulatory restrictions. See “Regulatory Matters - Dividends” and ITEM 8, “Financial Statements and Supplementary Data”- Note 17 of Notes to Consolidated Financial Statements.
The payment of dividends to Group by Holdings and to Holdings by Everest Re is subject to Delaware regulatory restrictions and the payment of dividends to Group by Bermuda Re is subject to Bermuda insurance regulatory restrictions.
The following performance graph compares cumulative total shareholder returns on the common shares (assuming reinvestment of dividends) from December 31, 2019 through December 31, 2024, with the cumulative total return of the S&P 500 Index and the S&P Insurance (Property and Casualty) Index. 12/19 12/20 12/21 12/22 12/23 12/24 Everest Group, Ltd. 100.00 86.94 104.19 128.89 140.12 146.54 S&P 500 100.00 118.40 152.39 124.79 157.59 197.02 S&P Property & Casualty Insurance 100.00 106.96 127.58 151.65 168.05 227.67 * $100 invested on December 31, 2019 in stock or index, including reinvestment of dividends.
The following performance graph compares cumulative total shareholder returns on the common shares (assuming reinvestment of dividends) from December 31, 2020 through December 31, 2025, with the cumulative total return of the S&P 500 Index and the S&P Insurance (Property and Casualty) Index. 38 Table of Contents 12/20 12/21 12/22 12/23 12/24 12/25 Everest Group, Ltd. 100.00 119.84 148.25 161.17 168.55 161.56 S&P 500 100.00 128.71 105.40 133.10 166.40 196.16 S&P Property & Casualty Insurance 100.00 119.28 141.79 157.12 212.86 234.33 *$100 invested on December 31, 2020 in stock or index, including reinvestment of dividends.
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The Company’s Board has an established policy of declaring regular quarterly cash dividends and has paid a regular quarterly dividend in each quarter since the fourth quarter of 1995.
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As of December 31, 2025, the Company and/or its subsidiary Holdings have repurchased 33.7 million of the Company’s shares. (2) Shares that have not been repurchased through a publicly announced plan or program consist of shares repurchased by the Company from employees in order to satisfy tax withholding obligations on vestings and/or settlements of share-based compensation awards.
Removed
As of December 31, 2024, the Company and/or its subsidiary Holdings have repurchased 31.3 million of the Company’s shares. Recent Sales of Unregistered Securities. None. 35 Table of Contents Performance Graph.
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Recent Sales of Unregistered Securities. None. Performance Graph.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeThe following table presents our incurred losses and LAE for the periods indicated: Years Ended December 31, (Dollars in millions) Current Year Ratio %/ Pt Change Prior Years Ratio %/ Pt Change Total Incurred Ratio %/ Pt Change 2024 Attritional $ 9,074 59.8 % $ 1,475 9.7 % $ 10,550 69.5 % Catastrophes 893 5.9 % (138) (0.9) % 755 5.0 % Total segment $ 9,967 65.6 % $ 1,337 8.8 % $ 11,305 74.4 % 2023 Attritional $ 7,963 59.2 % $ (5) — % $ 7,958 59.2 % Catastrophes 470 3.5 % — — % 470 3.5 % Total segment $ 8,432 62.7 % $ (5) — % $ 8,427 62.7 % 2022 Attritional $ 7,047 59.8 % $ (2) — % $ 7,045 59.8 % Catastrophes 1,055 9.0 % — — % 1,055 9.0 % Total segment $ 8,102 68.8 % $ (2) — % $ 8,100 68.7 % Variance 2024/2023 Attritional $ 1,112 0.5 pts $ 1,481 9.8 pts $ 2,592 10.3 pts Catastrophes 423 2.4 pts (138) (0.9) pts 285 1.5 pts Total segment $ 1,535 2.9 pts $ 1,342 8.8 pts $ 2,877 11.7 pts Variance 2023/2022 Attritional $ 916 (0.5) pts $ (3) — pts $ 912 (0.6) pts Catastrophes (585) (5.5) pts — — pts (585) (5.5) pts Total segment $ 331 (6.0) pts $ (3) — pts $ 327 (6.0) pts (Some amounts may not reconcile due to rounding.) Incurred losses and LAE increased by 34.1% to $11.3 billion in 2024, compared to $8.4 billion in 2023, primarily due to an increase of $1.1 billion in current year attritional losses, an increase of $423 million in current year catastrophe losses and unfavorable development on prior year attritional losses of $1.5 billion, partially offset by favorable development on prior year catastrophe losses of $138 million.
Biggest changeThe following table presents our incurred losses and LAE for the periods indicated: Years Ended December 31, (Dollars in millions) Current Year Ratio %/ Pt Change Prior Years Ratio %/ Pt Change Total Incurred Ratio %/ Pt Change 2025 Attritional $ 9,382 60.3 % $ 751 4.8 % $ 10,133 65.1 % Catastrophes 819 5.3 % (94) (0.6) % 726 4.7 % Total segment $ 10,202 65.6 % $ 657 4.2 % $ 10,859 69.8 % 2024 Attritional $ 9,074 59.8 % $ 1,475 9.7 % $ 10,550 69.5 % Catastrophes 893 5.9 % (138) (0.9) % 755 5.0 % Total segment $ 9,967 65.6 % $ 1,337 8.8 % $ 11,305 74.4 % 2023 Attritional $ 7,963 59.2 % $ (5) — % $ 7,958 59.2 % Catastrophes 470 3.5 % — — % 470 3.5 % Total segment $ 8,432 62.7 % $ (5) — % $ 8,427 62.7 % Variance 2025/2024 Attritional $ 308 0.5 pts $ (725) (4.9) pts $ (417) (4.3) pts Catastrophes (73) (0.6) pts 45 0.3 pts (29) (0.3) pts Total segment $ 234 (0.1) pts $ (680) (4.6) pts $ (446) (4.6) pts Variance 2024/2023 Attritional $ 1,112 0.5 pts $ 1,481 9.8 pts $ 2,592 10.3 pts Catastrophes 423 2.4 pts (138) (0.9) pts 285 1.5 pts Total segment $ 1,535 2.9 pts $ 1,342 8.8 pts $ 2,877 11.7 pts (Some amounts may not reconcile due to rounding.) Incurred losses and LAE decreased by 3.9% to $10.9 billion in 2025, compared to $11.3 billion in 2024, primarily due to a decrease in unfavorable development on prior year attritional losses of $725 million and a decrease of $73 million in 43 Table of Contents current year catastrophe losses, partially offset by an increase of $308 million in current year attritional losses and a decrease in favorable development on prior year catastrophe losses of $45 million.
The current year catastrophe losses of $893 million in 2024 related primarily to Hurricane Milton ($320 million), Hurricane Helene ($94 million), Hurricane Beryl ($64 million), Hurricane Debby ($56 million), the 2024 European flood Boris ($56 million), the 2024 Baltimore bridge collapse ($55 million), the third quarter 2024 Calgary Alberta storms ($54 million), the 2024 Brazil Floods ($41 million), the 2024 Dubai floods ($32 million), the 2024 Germany floods ($31 million), the 2024 New Caledonia Riots ($31 million) and the 2024 Taiwan earthquake ($27 million), with the remaining losses resulting from various events.
The $893 million of current year catastrophe losses in 2024 related primarily to Hurricane Milton ($320 million), Hurricane Helene ($94 million), Hurricane Beryl ($64 million), Hurricane Debby ($56 million), the 2024 European flood Boris ($56 million), the 2024 Baltimore bridge collapse ($55 million), the third quarter 2024 Calgary Alberta storms ($54 million), the 2024 Brazil Floods ($41 million), the 2024 Dubai floods ($32 million), the 2024 Germany floods ($31 million), the 2024 New Caledonia Riots ($31 million) and the 2024 Taiwan earthquake ($27 million), with the remaining losses resulting from various events.
The current year catastrophe losses of $772 million in 2024 related primarily to Hurricane Milton ($275 million), Hurricane Helene ($64 million), Hurricane Debby ($55 million), Hurricane Beryl ($54 million), the 2024 European flood Boris ($50 million), the 2024 Baltimore bridge collapse ($50 million), the third quarter 2024 Calgary Alberta storms ($45 million) and the 2024 Brazil Floods ($41 million), the 2024 Dubai floods ($32 million), the 2024 New Caledonia Riots ($31 million), the 2024 Germany floods ($28 million) and the 2024 Taiwan earthquake ($25 million), with the remaining losses resulting from various events.
The $772 million of current year catastrophe losses in 2024 related primarily to Hurricane Milton ($275 million), Hurricane Helene ($64 million), Hurricane Debby ($55 million), Hurricane Beryl ($54 million), the 2024 European flood Boris ($50 million), the 2024 Baltimore bridge collapse ($50 million), the third quarter 2024 Calgary Alberta storms ($45 million) and the 2024 Brazil Floods ($41 million), the 2024 Dubai floods ($32 million), the 2024 New Caledonia Riots ($31 million), the 2024 Germany floods ($28 million) and the 2024 Taiwan earthquake ($25 million), with the remaining losses resulting from various events.
Premiums written by us are earned ratably over the coverage periods of the related insurance and reinsurance contracts. We establish unearned premium reserves to cover the unexpired portion of each contract. Such reserves, for assumed reinsurance, are computed using pro rata methods based on statistical data received from ceding companies.
Premiums Written and Earned. Premiums written by us are earned ratably over the coverage periods of the related insurance and reinsurance contracts. We establish unearned premium reserves to cover the unexpired portion of each contract. Such reserves, for assumed reinsurance, are computed using pro rata methods based on statistical data received from ceding companies.
The 2023 Act includes a provision referred to as “The Economic Transition Adjustment” (the “ETA”), which is intended to provide a fair and equitable transition into the new tax regime, and results in a deferred tax benefit for the Company.
The 2023 Act includes a provision referred to as “The Economic Transition Adjustment” (the “ETA”), which is intended to provide a fair and equitable transition into the new tax regime, and results in a deferred tax benefit for the Company.
Management’s best estimate is developed through collaboration with actuarial, underwriting, claims, legal and finance departments and culminates with the input of reserve committees. Each segment reserve committee includes the participation of the relevant parties from actuarial, finance, claims and segment senior management. Reserves are further reviewed by Everest’s Chief Reserving Actuary and senior management.
Management’s best estimate is developed through collaboration with actuarial, underwriting, claims, legal and finance departments and culminates with the input of reserve committees. Each segment reserve committee includes the participation of the relevant parties from actuarial, finance, claims and segment senior management. Reserves are further reviewed by Everest’s Chief Reserving Actuary and senior management.
We mitigate foreign exchange exposure by generally matching the currency and duration of our assets to our corresponding operating liabilities. In accordance with GAAP 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.
Generally, we mitigate foreign exchange exposure by matching the currency and duration of our assets to our corresponding operating liabilities. In accordance with GAAP, 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.
The current year catastrophe losses of $120 million primarily related to Hurricane Milton ($44 million), Hurricane Helene ($29 million), Hurricane Beryl ($10 million) and the third quarter 2024 Calgary Alberta storms ($9 million), with the remaining losses resulting from various events.
The $120 million of current year catastrophe losses in 2024 primarily related to Hurricane Milton ($44 million), Hurricane Helene ($29 million), Hurricane Beryl ($10 million) and the third quarter 2024 Calgary Alberta storms ($9 million), with the remaining losses resulting from various events.
We continue to possess significant financial flexibility and access to debt and equity markets as a result of our financial strength, as evidenced by the financial strength ratings assigned by independent rating agencies. See also ITEM 1, Business - “Financial Strength Ratings”.
We continue to possess significant financial flexibility and access to debt and equity markets as a result of our financial strength, as evidenced by the financial strength ratings assigned by independent rating agencies. See also ITEM 1, “Financial Strength Ratings”.
The table below reflects our PML exposure, net of third-party reinsurance including catastrophe industry loss warranty cover, at various return periods for our top zones/perils (as ranked by the largest 1 in 100-year economic loss) based on loss projection data as of January 1, 2025: Return Periods (in years) 1 in 20 1 in 50 1 in 100 1 in 250 1 in 500 Exceeding Probability 5.0% 2.0% 1.0% 0.4% 0.2% (Dollars in millions) Zone Peril Southeast U.S.
The table below reflects our PML exposure, net of third-party reinsurance including catastrophe industry loss warranty cover, at various return periods for our top zones/perils (as ranked by the largest 1 in 100-year economic loss) based on loss projection data as of January 1, 2026: Return Periods (in years) 1 in 20 1 in 50 1 in 100 1 in 250 1 in 500 Exceeding Probability 5.0% 2.0% 1.0% 0.4% 0.2% (Dollars in millions) Zone Peril Southeast U.S.
It also 44 Table of Contents includes run-off A&E exposures, certain discontinued insurance programs primarily written prior to 2012 and certain discontinued insurance and reinsurance coverage classes. The Other segment does not generally sell insurance or reinsurance products but is responsible for the management of existing policies and settlement of related losses.
It also includes run-off A&E exposures, certain discontinued insurance programs primarily written prior to 2012 and certain 52 Table of Contents discontinued insurance and reinsurance coverage classes. The Other segment does not generally sell insurance or reinsurance products but is responsible for the management of existing policies and settlement of related losses.
If such a single catastrophe loss were to occur, management estimates that the net economic loss to us would be approximately $1.5 billion. The estimate involves multiple variables, including which Everest entity would experience the loss, and as a result there can be no assurance that this amount would not be exceeded.
If such a single catastrophe loss were to occur, management estimates that the net economic loss to us would be approximately $1.7 billion. The estimate involves multiple variables, including which Everest entity would experience the loss, and as a result there can be no assurance that this amount would not be exceeded.
Such analysis generally involves: 1) estimating the size of insured industry losses; 2) reviewing portfolios to identify contracts which are exposed; 3) reviewing information reported or otherwise provided by customers and brokers; 4) discussing the loss with customers and brokers; and 5) estimating the ultimate expected cost to settle all claims and administrative costs arising from the loss on a contract-by-contract basis 50 Table of Contents and in aggregate for the event.
Such analysis generally involves: 1) estimating the size of insured industry losses; 2) reviewing portfolios to identify contracts which are exposed; 3) reviewing information reported or otherwise provided by customers and brokers; 4) discussing the loss with customers and brokers; and 5) estimating the ultimate expected cost to settle all claims and administrative costs arising from the loss on a contract-by-contract basis and in aggregate for the event.
(2) Regulatory targeted capital represents 200% of the RBC authorized control level calculation for the applicable year. (3) The 2024 BSCR calculation is not yet due to be completed; however, the Company anticipates that Bermuda Re's December 31, 2024 actual capital will exceed the targeted capital level.
(2) Regulatory targeted capital represents 200% of the RBC authorized control level calculation for the applicable year. (3) The 2025 BSCR calculation is not yet due to be completed; however, the Company anticipates that Bermuda Re's December 31, 2025 actual capital will exceed the targeted capital level.
Our recorded reserves are an aggregation of our best point estimates for approximately 200 reserve groups and reflect our best point estimate of our liabilities. Our actuarial methodologies develop point estimates rather than ranges and the ranges are developed subsequently based upon historical and prospective variability measures.
Our recorded reserves are an aggregation of our best point estimates for approximately 250 reserve groups and reflect our best point estimate of our liabilities. Our actuarial methodologies develop point estimates rather than ranges and the ranges are developed subsequently based upon historical and prospective variability measures.
We manage our exposure to catastrophes and other large losses by: • selective underwriting practices; • diversifying our risk portfolio by geographic area and by types and classes of business; • limiting our aggregate catastrophe loss exposure in any particular geographic zone and contiguous zones; 58 Table of Contents • purchasing reinsurance and/or retrocessional protection to the extent that such coverage can be secured cost-effectively.
We manage our exposure to catastrophes and other large losses by: • selective underwriting practices; • diversifying our risk portfolio by geographic area and by types and classes of business; • limiting our aggregate catastrophe loss exposure in any particular geographic zone and contiguous zones; • purchasing reinsurance and/or retrocessional protection to the extent that such coverage can be secured cost-effectively.
Such future emergence, to the extent not covered by existing retrocessional contracts, could have material adverse effects on our future financial condition, results of operations and cash flows. A&E Exposures. A&E exposures represent a separate exposure group for monitoring and evaluating reserve adequacy. The results of run-off A&E exposures are included within the Company’s Other segment.
Such future emergence, to the extent not covered by existing retrocessional contracts, could have material adverse effects on our future financial condition, results of operations and cash flows. 59 Table of Contents A&E Exposures. A&E exposures represent a separate exposure group for monitoring and evaluating reserve adequacy. The results of run-off A&E exposures are included within the Company’s Other segment.
Tax. On December 27, 2023, the Government of Bermuda enacted the Corporate Income Tax Act 2023 (“The 2023 Act”), which will apply a 15% corporate income tax to certain Bermuda businesses in fiscal years beginning on or after January 1, 2025.
Tax. On December 27, 2023, the Government of Bermuda enacted the Corporate Income Tax Act 2023 (the “2023 Act”), which will apply a 15% corporate income tax to certain Bermuda businesses in fiscal years beginning on or after January 1, 2025.
Net income (loss) will be impacted in a period in which the change in estimated ultimate losses and LAE is recorded. See also ITEM 8, “Financial Statements and Supplementary Data” - Note 1 of Notes to the Consolidated Financial Statements. 49 Table of Contents It is more difficult to accurately estimate loss reserves for reinsurance liabilities than for insurance liabilities.
Net income (loss) will be impacted in a period in which the change in estimated ultimate losses and LAE is recorded. See also ITEM 8, “Financial Statements and Supplementary Data” - Note 1 of Notes to the Consolidated Financial Statements. It is more difficult to accurately estimate loss reserves for reinsurance liabilities than for insurance liabilities.
Changes in reserves resulting from 54 Table of Contents such re-evaluations are reflected in incurred losses in the period when the re-evaluation is made. Our analytical methods and processes operate at multiple levels including individual contracts, groupings of like contracts, classes and lines of business, internal business units, segments, accident years, legal entities and in the aggregate.
Changes in reserves resulting from such re-evaluations are reflected in incurred losses in the period when the re-evaluation is made. Our analytical methods and processes operate at multiple levels including individual contracts, groupings of like contracts, classes and lines of business, internal business units, segments, accident years, legal entities and in the aggregate.
These techniques range from deterministic approaches, such as tracking aggregate limits exposed in catastrophe-prone 57 Table of Contents zones and applying reasonable damage factors, to modeled approaches that attempt to scientifically measure catastrophe loss exposure using sophisticated Monte Carlo simulation techniques that forecast frequency and severity of potential losses on a probabilistic basis.
These techniques range from deterministic approaches, such as tracking aggregate limits exposed in catastrophe-prone zones and applying reasonable damage factors, to modeled approaches that attempt to scientifically measure catastrophe loss exposure using sophisticated Monte Carlo simulation techniques that forecast frequency and severity of potential losses on a probabilistic basis.
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. 43 Table of Contents Net Gains (Losses) on Investments.
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. 47 Table of Contents Net Gains (Losses) on Investments.
We report the results of our operations consistent with the manner in which our CODM reviews the business. During the fourth quarter of 2024, the Company revised its classification and presentation of certain run-off business, previously included within the Reinsurance and Insurance reportable segments, as part of a new segment called "Other".
We report the results of our operations consistent with the manner in which our CODM reviews the business. 48 Table of Contents During the fourth quarter of 2024, the Company revised its classification and presentation of certain run-off business, previously included within the Reinsurance and Insurance reportable segments, as part of a new segment called "Other".
As the timing of payments for losses and LAE cannot be predicted with certainty, we maintain portfolios of long-term invested assets with varying maturities, along with short-term investments that provide additional liquidity for payment of claims. At December 31, 2024 and December 31, 2023, we held cash and short-term investments of $6.3 billion and $3.6 billion, respectively.
As the timing of payments for losses and LAE cannot be predicted with certainty, we maintain portfolios of long-term invested assets with varying maturities, along with short-term investments that provide additional liquidity for payment of claims. At December 31, 2025 and December 31, 2024, we held cash and short-term investments of $4.3 billion and $6.3 billion, respectively.
We participate in “common account” retrocessional arrangements for certain reinsurance treaties whereby a ceding company purchases reinsurance for the benefit of itself and its reinsurers under one or more of its reinsurance treaties. 59 Table of Contents Common account retrocessional arrangements reduce the effect of individual or aggregate losses to all participating companies, including the ceding company, with respect to the involved treaties.
We participate in “common account” retrocessional arrangements for certain reinsurance treaties whereby a ceding company purchases reinsurance for the benefit of itself and its reinsurers under one or more of its reinsurance treaties. Common account retrocessional arrangements reduce the effect of individual or aggregate losses to all participating companies, including the ceding company, with respect to the involved treaties.
The Company analyzes significant variances between actual and expected losses and also considers recent market, underwriting and management criteria to determine management’s best estimate of ultimate unpaid losses and LAE. Certain reserves, including losses from widespread catastrophic events and COVID-19 related losses, cannot be estimated using traditional actuarial method.
The Company analyzes significant variances between actual and expected losses and also considers recent market, underwriting and management criteria to determine management’s best estimate of ultimate unpaid losses and LAE. Certain reserves, including losses from widespread catastrophic events, cannot be estimated using traditional actuarial method.
Due to the uncertainties discussed above, the ultimate losses attributable to A&E, and particularly asbestos, may be subject to more variability than are non-A&E reserves and such variation could have a material adverse effect on our 51 Table of Contents financial condition, results of operations and/or cash flows.
Due to the uncertainties discussed above, the ultimate losses attributable to A&E, and particularly asbestos, may be subject to more variability than are non-A&E reserves and such variation could have a material adverse effect on our financial condition, results of operations and/or cash flows.
If the Bermuda Ministry of Finance amends The 2023 Act in response to this Guidance, the exact impact of any such amendments is uncertain but there is a risk that it results in a reduction in the Company's Deferred Tax Assets. The net deferred tax assets principally relate to the identifiable intangible assets.
If the Bermuda Ministry of Finance amends the 2023 Act in response to this guidance, the exact impact of any such amendments is uncertain but there is a risk that it results in a reduction in the Company's Deferred Tax Assets. 57 Table of Contents The net deferred tax assets principally relate to the identifiable intangible assets.
For smaller events including localized severe weather events such as windstorms, hail, ice, snow, flooding, freezing and tornadoes, which are not necessarily prominent, public occurrences, we initially place greater reliance on catastrophe bulletins published by statistical modeling agencies to assist in determining what events occurred during the reporting period than we do for large events.
For smaller events including localized severe weather events such as windstorms, hail, ice, snow, flooding, freezing and tornadoes, which are not necessarily prominent, public 54 Table of Contents occurrences, we initially place greater reliance on catastrophe bulletins published by statistical modeling agencies to assist in determining what events occurred during the reporting period than we do for large events.
At December 31, 2024 and 2023, our investment portfolio included a total of $5.1 billion and $4.5 billion of limited partnership investments, whose values are reported pursuant to the equity method of accounting, and corporate-owned life insurance (“COLI”) policies, whose values are reported at cash surrender value.
At December 31, 2025 and 2024, our investment portfolio included a total of $5.5 billion and $5.1 billion of limited partnership investments, whose values are reported pursuant to the equity method of accounting, and corporate-owned life insurance (“COLI”) policies, whose values are reported at cash surrender value.
In a declining interest rate environment, interest rate risk includes prepayment risk on the $7.1 billion of mortgage-backed securities in the $29.7 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.
In a declining interest rate environment, interest rate risk includes prepayment risk on the $8.7 billion of mortgage-backed securities in the $35.1 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 tables below display the potential impact of fair value fluctuations and after-tax unrealized appreciation on our fixed maturity portfolio (including $4.7 billion 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.
The tables below display the potential impact of fair value fluctuations and after-tax unrealized appreciation on our fixed maturity portfolio (including $3.0 billion 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.
See “Reinsurance and Retrocession Arrangements”. We believe that our methods of monitoring, analyzing and managing catastrophe exposures provide a credible risk management framework, which is integrated with our enterprise risk management, underwriting and capital management plans. However, there is much uncertainty and imprecision inherent in the catastrophe models and the catastrophe loss estimation process generally.
We believe that our methods of monitoring, analyzing and managing catastrophe exposures provide a credible risk management framework, which is integrated with our enterprise risk management, underwriting and capital management plans. However, there is much uncertainty and imprecision inherent in the catastrophe models and the catastrophe loss estimation process generally.
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 generally recorded at the initiation of the coverage period. 47 Table of Contents Incurred Losses and LAE.
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 generally recorded at the initiation of the coverage period. 49 Table of Contents Incurred Losses and LAE.
However, on January 15, 2025, the OECD issued Guidance related to “deferred tax assets arising from tax benefits provided by General Government” whereby it has restricted the utilization of those deferred tax benefits against the computation of its Pillar Two Global Minimum Taxes to approximately 20% of the originally calculated amounts and only for a grace period of two years through 2026.
However, on January 15, 2025, the OECD issued guidance related to “deferred tax assets arising from tax benefits provided by General Government” restricting the utilization of those deferred tax benefits against the computation of its Pillar Two Global Minimum Taxes to approximately 20% of the originally calculated amounts and only for a grace period of two years through 2026.
The payment of dividends to Group by Holdings Ireland and Everest Dublin Holdings is subject to Irish corporate and regulatory restrictions; the payment of dividends to Holdings Ireland by Holdings and to Holdings by Everest Re is subject to Delaware regulatory restrictions; and the payment of dividends to Group by Bermuda Re, Everest International, Everest Preferred International Holdings (“Preferred 60 Table of Contents Holdings”), Everest Re Advisors Ltd.
The payment of dividends to Group by Holdings Ireland and Everest Dublin Holdings is subject to Irish corporate and regulatory restrictions; the payment of dividends to Holdings Ireland by Holdings and to Holdings by Everest Re is subject to Delaware regulatory restrictions; and the payment of dividends to Group by Bermuda Re, Everest International, Everest Preferred International Holdings (“Preferred Holdings”), Everest Re Advisors Ltd.
We have established reserves for uncollectible balances based on our assessment of the collectability of the outstanding balances. The allowance for uncollectible reinsurance reflects management’s best estimate of reinsurance cessions that may be uncollectible in the future due to reinsurers’ unwillingness or inability to pay. The allowance for uncollectible reinsurance comprises an allowance and an allowance for disputed balances.
We have established reserves for uncollectible balances based on our assessment of the collectability of the outstanding balances. The allowance for uncollectible reinsurance reflects management’s best estimate of reinsurance cessions that may be uncollectible in the future due to reinsurers’ unwillingness or inability to pay.
We consider many factors when setting reserves including: (1) our exposure base and projected ultimate premiums earned; (2) our expected loss ratios by product and class of business, which are developed collaboratively by underwriters and actuaries; (3) actuarial methodologies and assumptions which analyze our loss reporting and payment experience, reports from ceding companies and historical trends, such as reserving patterns, loss payments and product mix; (4) current legal interpretations of coverage and liability; and (5) economic conditions.
We consider many factors when setting reserves including: (1) our exposure base and projected ultimate premiums earned; (2) our expected loss ratios by product and class of business, which are developed collaboratively by underwriters and actuaries; (3) actuarial methodologies and assumptions which analyze our loss reporting and payment experience, size of loss distribution, reports from ceding companies and historical trends, such as reserving patterns, loss payments and product mix; (4) current legal interpretations of coverage and liability; and (5) economic conditions including but not limited to social inflation.
The table below summarizes the composition and characteristics of our investment portfolio as of the dates indicated: At December 31, 2024 2023 Fixed income portfolio duration (years) 3.1 3.3 Fixed income composite credit quality AA- AA- Reinsurance Recoverables. Reinsurance recoverables for both paid and unpaid losses totaled $3.1 billion at December 31, 2024 and $2.3 billion at December 31, 2023.
The table below summarizes the composition and characteristics of our investment portfolio as of the dates indicated: At December 31, 2025 2024 Fixed income portfolio duration (years) 3.4 3.1 Fixed income composite credit quality AA- AA- Reinsurance Recoverables. Reinsurance recoverables for both paid and unpaid losses totaled $5.1 billion at December 31, 2025 and $3.1 billion at December 31, 2024.
For certain proportional contracts, we may require a detailed loss report for claims that exceed a certain dollar threshold or relate to a particular type of loss.
For certain proportional contracts, we may require a 53 Table of Contents detailed loss report for claims that exceed a certain dollar threshold or relate to a particular type of loss.
Our short-term investments are generally readily marketable and can be converted to cash. In addition to these cash and short-term investments, we had $1.1 billion of fixed maturity securities - available for sale maturing within one year or less, $8.5 billion maturing within one to five years and $6.2 billion maturing after five years at December 31, 2024.
Our short-term investments are generally readily marketable and can be converted to cash. In addition to these cash and short-term investments, we had $1.4 billion of fixed maturity securities - available for sale maturing within one year or less, $10.8 billion maturing within one to five years and $8.6 billion maturing after five years at December 31, 2025.
The increase was primarily driven by higher interest costs resulting from additional borrowings from the Federal Home Loan Bank of New York (“FHLBNY”), offset by the change in the floating interest rate related to the Company’s outstanding fixed to floating rate long-term subordinated notes, which is reset quarterly per the note agreement.
The increase was primarily driven by higher interest costs on the Federal Home Loan Bank of New York (“FHLBNY”), partially offset by the change in the floating interest rate related to the Company’s outstanding fixed to floating rate long-term subordinated notes, which is reset quarterly per the note agreement.
Additionally, the average maturity of fixed maturity securities was 4.9 years at December 31, 2024, and their overall average duration was 3.1 years.
Additionally, the average maturity of fixed maturity securities was 4.9 years at December 31, 2025, and their overall average duration was 3.4 years.
Aggregate Index 1.3 % 5.5 % (13.0) % Common equity portfolio total return 10.9 % 17.6 % (18.5) % S&P 500 index 25.0 % 26.3 % (18.1) % Other invested asset portfolio total return 6.5 % 4.3 % 4.5 % The pre-tax equivalent total return for the bond portfolio was approximately 4.0% and 6.8%, respectively, in 2024 and 2023.
Aggregate Index 7.3 % 1.3 % 5.5 % Common equity portfolio total return 11.0 % 10.9 % 17.6 % S&P 500 index 17.8 % 25.0 % 26.3 % Other invested asset portfolio total return 7.4 % 6.5 % 4.3 % The pre-tax equivalent total return for the bond portfolio was approximately 8.5% and 4.0%, respectively, in 2025 and 2024.
The rise in investments was primarily related to an increase in fixed maturities - available for sale due to an overall net purchase of $1.5 billion of fixed maturities - available for sale in 2024. The Company’s limited partnership investments are comprised of limited partnerships that invest in private equity, private credit and private real estate.
The rise in investments was primarily related to an increase in fixed maturities - available for sale due to an overall net purchase of $4.3 billion of fixed maturities - available for sale in 2025. The Company’s limited partnership investments are comprised of limited partnerships that invest in private equity, private credit and private real estate.
Refer to management’s discussion of consolidated and segment results below. The following is a discussion and analysis of our results of operations, financial condition and liquidity and capital resources for the years ended December 31, 2024 and 2023. This discussion should be read in conjunction with the consolidated financial statements and related notes, under ITEM 8 of this Form 10-K.
The following is a discussion and analysis of our results of operations, financial condition and liquidity and capital resources for the years ended December 31, 2025 and 2024. This discussion should be read in conjunction with the consolidated financial statements and related notes, under ITEM 8 of this Form 10-K.
In addition to our cash flows from operations and liquid investments, Everest Re is a member of the FHLBNY, which allows Everest Re to borrow up to 10% of its statutory admitted assets. As of December 31, 2024, Everest Re had statutory admitted assets of approximately $30.8 billion which provides borrowing capacity of up to approximately $3.1 billion.
In addition to our cash flows from operations and liquid investments, Everest Re is a member of the FHLBNY, which allows Everest Re to borrow up to 10% of its statutory admitted assets. As of December 31, 2025, Everest Re had statutory admitted assets of approximately $32.6 billion which provides borrowing capacity of up to approximately $3.3 billion.
At December 31, 2023, A&E Case and IBNR reserves totaled $159 million and $88 million, respectively. Changes in premiums earned and business mix, reserve refinement, catastrophe losses and changes in catastrophe loss reserves and claim settlement activity all impact loss and LAE reserves by segment and in total.
At December 31, 2024, A&E Case and IBNR reserves totaled $149 million and $111 million, respectively. Changes in premiums earned and business mix, reserve refinement, catastrophe losses and changes in catastrophe loss reserves and claim settlement activity all impact loss and LAE reserves by segment and in total.
Our $41.5 billion investment portfolio at December 31, 2024, 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.
Our $45.4 billion investment portfolio at December 31, 2025, 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.
As of December 31, 2024, Everest Re had $1.0 billion of borrowings outstanding, which begin to expire in 2025. See Note 7 - Credit Facilities to the Notes to the Consolidated Financial Statements in Part IV, Item 15 of this Form 10-K for further details. Exposure to Catastrophes.
As of December 31, 2025, Everest Re had $1.0 billion of borrowings outstanding, which begin to expire in 2026. See Note 8 - Credit Facilities to the Notes to the Consolidated Financial Statements in Part IV, Item 15 of this Form 10-K for further details. Exposure to Prior Year Development.
If we were to discount our loss and LAE reserves, net of ceded reserves, the discount would be approximately $4.9 billion resulting in a discounted reserve balance of approximately $22.1 billion, representing approximately 64.4% of the value of the fixed maturity investment portfolio funds. Foreign Currency Risk.
If we were to discount our loss and LAE reserves, net of ceded reserves, the discount would be approximately $5.1 billion resulting in a discounted reserve balance of approximately $25.5 billion, representing approximately 66.8% of the value of the fixed maturity investment portfolio funds. Foreign Currency Risk.
The following table summarizes fixed maturities by contractual maturity for the periods indicated: At December 31, 2024 2023 (Dollars in millions) Fair Value/ Amortized Cost (1) (2) Percent of Total Fair Value/ Amortized Cost (1) (2) Percent of Total Fixed maturity securities Due in one year or less $ 1,087 3.7 % $ 1,266 4.4 % Due after one year through five years 8,546 28.8 % 6,916 24.2 % Due after five years through ten years 4,560 15.4 % 5,448 19.1 % Due after ten years 1,871 6.3 % 2,585 9.0 % Asset-backed securities 6,462 21.8 % 6,221 21.8 % Mortgage-backed securities 7,141 24.1 % 6,159 21.5 % Total fixed maturity securities $ 29,665 100.0 % $ 28,595 100.0 % (Some amounts may not reconcile due to rounding.) (1) Fixed maturities-available for sale are at fair value and fixed maturities-held to maturity are at amortized cost, net of allowances for credit losses.
The following table summarizes fixed maturities by contractual maturity for the periods indicated: At December 31, 2025 2024 (Dollars in millions) Fair Value/ Amortized Cost (1) (2) Percent of Total Fair Value/ Amortized Cost (1) (2) Percent of Total Fixed maturity securities Due in one year or less $ 1,430 4.1 % $ 1,087 3.7 % Due after one year through five years 10,886 31.0 % 8,546 28.8 % Due after five years through ten years 6,785 19.3 % 4,560 15.4 % Due after ten years 1,918 5.5 % 1,871 6.3 % Asset-backed securities 5,402 15.4 % 6,462 21.8 % Mortgage-backed securities 8,719 24.8 % 7,141 24.1 % Total fixed maturity securities $ 35,140 100.0 % $ 29,665 100.0 % (Some amounts may not reconcile due to rounding.) (1) Fixed maturities-available for sale are at fair value and fixed maturities-held to maturity are at amortized cost, net of allowances for credit losses.
The pre-tax equivalent return adjusts the yield on tax-exempt bonds to the fully taxable equivalent. Invested Assets. The Company’s cash and invested assets totaled $41.5 billion at December 31, 2024, which consisted of 86.5% fixed maturities, short term investments and cash and 13.5% of other invested assets and equity securities. Of the total fixed maturities, 96.4% were investment grade.
The pre-tax equivalent return adjusts the yield on tax-exempt bonds to the fully taxable equivalent. Invested Assets. The Company’s cash and invested assets totaled $45.4 billion at December 31, 2025, which consisted of 86.8% fixed maturities, short term investments and cash and 13.2% of other invested assets and equity securities. Of the total fixed maturities, 98.1% were investment grade.
Additionally, these cash flows reflected net catastrophe loss payments of $693 million and $858 million for the years ended December 31, 2024 and 2023, respectively, and net tax payments of $397 million and $196 million for the years ended December 31, 2024 and 2023, respectively.
Additionally, these cash flows reflected net catastrophe loss payments of $852 million and $693 million for the years ended December 31, 2025 and 2024, respectively, and net tax payments of $150 million and $397 million for the years ended December 31, 2025 and 2024, respectively.
Commission, Brokerage, Taxes and Fees. Commission, brokerage, taxes and fees increased by 11.8% to $3.3 billion for the year ended December 31, 2024 compared to $3.0 billion for the year ended December 31, 2023. The increase was primarily due to the impact of the increase in premiums earned and changes in the mix of business.
Commission, brokerage, taxes and fees increased by 4.9% to $3.5 billion for the year ended December 31, 2025 compared to $3.3 billion for the year ended December 31, 2024. The increase was primarily due to the impact of the increase in premiums earned and changes in the mix of business.
The following table presents the underwriting results and ratios for the Other segment for the periods indicated: Years Ended December 31, (Dollars in millions) 2024 2023 2022 Gross written premiums $ 212 $ 289 $ 279 Net written premiums 167 225 204 Premiums earned $ 197 $ 225 $ 194 Incurred losses and LAE 580 266 98 Commission and brokerage 24 22 14 Other underwriting expenses 33 35 28 Underwriting gain (loss) $ (440) $ (98) $ 54 (Some amounts may not reconcile due to rounding.) Premiums.
The following table presents the underwriting results and ratios for the Other segment for the periods indicated: Years Ended December 31, (Dollars in millions) 2025 2024 2023 Gross written premiums $ 91 $ 212 $ 289 Net written premiums 84 167 225 Premiums earned $ 111 $ 197 $ 225 Incurred losses and LAE 292 580 266 Commission and brokerage 21 24 22 Other underwriting expenses 17 33 35 Underwriting gain (loss) $ (220) $ (440) $ (98) (Some amounts may not reconcile due to rounding.) Incurred Losses and LAE.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK See “Market Sensitive Instruments” in ITEM 7. ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA The financial statements and schedules listed in the accompanying Index to Financial Statements and Schedules on page F-1 are filed as part of this report. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK See “Market Sensitive Instruments” under ITEM 7. ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA The financial statements and schedules listed in the accompanying Index to Consolidated Financial Statements, Notes and Schedules on page F-1 are filed as part of this report. ITEM 9.
One of the key selection characteristics for the exposure groupings is the historical duration of the claims settlement process. Business in which claims are reported and settled relatively quickly are commonly referred to as short tail lines, principally property lines.
We currently use approximately 250 exposure groupings to develop our reserve estimates. One of the key selection characteristics for the exposure groupings is the historical duration of the claims settlement process. Business in which claims are reported and settled relatively quickly are commonly referred to as short tail lines, principally property lines.
See also ITEM 8, “Financial Statements and Supplementary Data” - Note 1 of Notes to the Consolidated Financial Statements. 53 Table of Contents FINANCIAL CONDITION Investments. Total investments were $40.0 billion at December 31, 2024, an increase of $4.3 billion compared to $35.7 billion at December 31, 2023.
See also ITEM 8, “Financial Statements and Supplementary Data” - Note 1 of Notes to the Consolidated Financial Statements. FINANCIAL CONDITION Investments. Total investments were $44.1 billion at December 31, 2025, an increase of $4.1 billion compared to $40.0 billion at December 31, 2024.
(2) Loss and LAE reserves represent management’s best estimate of losses from claim and related settlement costs. Both the amounts and timing of such payments are estimates, and the inherent variability of resolving claims as well as changes in market conditions make the timing of cash flows uncertain.
This excludes interest on Federal Home Loan Bank of New York borrowings. (2) Loss and LAE reserves represent management’s best estimate of losses from claim and related settlement costs. Both the amounts and timing of such payments are estimates, and the inherent variability of resolving claims as well as changes in market conditions make the timing of cash flows uncertain.
Change in Foreign Exchange Rates in Percent At December 31, 2024 (Dollars in millions) -20% -10% 0% 10% 20% Total After-tax Foreign Exchange Exposure $ (1,426) $ (713) $ — $ 713 $ 1,426 62 Table of Contents Change in Foreign Exchange Rates in Percent At December 31, 2023 (Dollars in millions) -20% -10% 0% 10% 20% Total After-tax Foreign Exchange Exposure $ (1,022) $ (511) $ — $ 511 $ 1,022 ITEM 7A.
Change in Foreign Exchange Rates in Percent At December 31, 2025 (Dollars in millions) -20% -10% 0% 10% 20% Total After-tax Foreign Exchange Exposure $ (1,918) $ (959) $ — $ 959 $ 1,918 67 Table of Contents Change in Foreign Exchange Rates in Percent At December 31, 2024 (Dollars in millions) -20% -10% 0% 10% 20% Total After-tax Foreign Exchange Exposure $ (1,426) $ (713) $ — $ 713 $ 1,426 ITEM 7A.
Our net cash flows from operating activities were $5.0 billion and $4.6 billion for the years ended December 31, 2024 and 2023, respectively.
Our net cash flows from operating activities were $3.1 billion and $5.0 billion for the years ended December 31, 2025 and 2024, respectively.
The following tables summarize gross outstanding loss and LAE reserves by segment, classified by case reserves and IBNR reserves, for the periods indicated: At December 31, 2024 (Dollars in millions) Case Reserves IBNR Reserves Total Reserves % of Total Reinsurance $ 6,591 $ 13,117 $ 19,708 65.9 % Insurance 2,289 6,552 8,841 29.6 % Other (1) 389 950 1,340 4.5 % Total $ 9,270 $ 20,619 $ 29,889 100.0 % (Some amounts may not reconcile due to rounding.) (1) Reserves for A&E exposures are included within Other.
At December 31, 2024 (Dollars in millions) Case Reserves IBNR Reserves Total Reserves % of Total Reinsurance $ 6,591 $ 13,117 $ 19,708 65.9 % Insurance 2,289 6,552 8,841 29.6 % Other (1) 389 950 1,340 4.5 % Total $ 9,270 $ 20,619 $ 29,889 100.0 % (Some amounts may not reconcile due to rounding.) 58 Table of Contents (1) Reserves for A&E exposures are included within Other.
For legal entities with a 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. 61 Table of Contents Impact of Interest Rate Shift in Basis Points At December 31, 2024 -200 -100 0 100 200 (Dollars in millions) Total Fair Value $ 36,514 $ 35,443 $ 34,372 $ 33,302 $ 32,231 Fair Value Change from Base (%) 6.2 % 3.1 % — % (3.1) % (6.2) % Change in Unrealized Appreciation After-tax from Base ($) $ 1,834 $ 917 $ — $ (917) $ (1,834) Impact of Interest Rate Shift in Basis Points At December 31, 2023 -200 -100 0 100 200 (Dollars in millions) Total Fair Value $ 32,813 $ 31,768 $ 30,722 $ 29,677 $ 28,631 Fair Value Change from Base (%) 6.8 % 3.4 % — % (3.4) % (6.8) % Change in Unrealized Appreciation After-tax from Base ($) $ 1,811 $ 905 $ — $ (905) $ (1,811) We had $29.9 billion and $24.6 billion of gross reserves for losses and LAE as of December 31, 2024 and 2023, respectively.
For legal entities with a 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. 66 Table of Contents Impact of Interest Rate Shift in Basis Points At December 31, 2025 -200 -100 0 100 200 (Dollars in millions) Total Fair Value $ 40,781 $ 39,458 $ 38,134 $ 36,811 $ 35,487 Fair Value Change from Base (%) 6.9 % 3.5 % — % (3.5) % (6.9) % Change in Unrealized Appreciation After-tax from Base ($) $ 2,139 $ 1,069 $ — $ (1,069) $ (2,139) Impact of Interest Rate Shift in Basis Points At December 31, 2024 -200 -100 0 100 200 (Dollars in millions) Total Fair Value $ 36,514 $ 35,443 $ 34,372 $ 33,302 $ 32,231 Fair Value Change from Base (%) 6.2 % 3.1 % — % (3.1) % (6.2) % Change in Unrealized Appreciation After-tax from Base ($) $ 1,834 $ 917 $ — $ (917) $ (1,834) We had $34.3 billion and $29.9 billion of gross reserves for losses and LAE as of December 31, 2025 and 2024, respectively.
At December 31, 2024, we had $990 million of net pre-tax unrealized depreciation related to fixed maturity - available for sale securities, comprised of $1.2 billion of pre-tax unrealized depreciation and $167 million of pre-tax unrealized appreciation. Management generally expects annual positive cash flow from operations.
At December 31, 2025, we had $21 million of net pre-tax unrealized appreciation related to fixed maturity - available for sale securities, comprised of $619 million of pre-tax unrealized depreciation and $640 million of pre-tax unrealized appreciation. Management generally expects annual positive cash flow from operations.
At December 31, 2024, we had reinsurance loss reserves of $19.7 billion, insurance loss reserves of $8.8 billion and other loss reserves of $1.3 billion, of which $260 million were loss reserves for A&E liabilities. A detailed discussion of additional considerations related to A&E exposures follows later in this section.
At December 31, 2025, we had reinsurance loss reserves of $22.7 billion, insurance loss reserves of $10.2 billion and other loss reserves of $1.4 billion, of which $209 million were loss reserves for A&E liabilities. A detailed discussion of additional considerations related to A&E exposures follows later in this section.
The regulatory targeted capital and the actual statutory capital for Bermuda Re and Everest Re were as follows: Bermuda Re (1) At December 31, Everest Re (2) At December 31, (Dollars in millions) 2024 ⁽³⁾ 2023 2024 2023 Regulatory targeted capital $ — $ 2,669 $ 4,799 $ 4,242 Actual capital $ 4,323 $ 3,711 $ 8,126 $ 6,963 (1) Regulatory targeted capital represents the target capital level from the applicable year's BSCR calculation.
The regulatory targeted capital and the actual statutory capital for Bermuda Re and Everest Re were as follows: Bermuda Re (1) At December 31, Everest Re (2) At December 31, (Dollars in millions) 2025 ⁽³⁾ 2024 2025 2024 Regulatory targeted capital $ — $ 3,151 $ 5,119 $ 4,799 Actual capital $ 4,209 $ 4,323 $ 8,856 $ 8,126 (1) Regulatory targeted capital represents the target capital level from the applicable year's BSCR calculation.
Our current year net income of $1.4 billion is inclusive of unfavorable development of prior-year loss reserves of $1.5 billion. Following a comprehensive reserve review, we have significantly fortified our U.S. casualty reserves, while taking aggressive underwriting action in certain classes exposed to social inflation, bolstering talent and investing in our platform as we head into 2025.
Our net income of $1.4 billion for the year ended December 31, 2024 is inclusive of unfavorable development of prior-year loss reserves of $1.5 billion. We have significantly fortified our U.S. casualty reserves, while taking aggressive underwriting action in certain classes exposed to social inflation, bolstering talent and investing in our platform as we head into 2026.
The following table displays a summary of the consolidated net income (loss), ratios and shareholders’ equity for the periods indicated: Years Ended December 31, Percentage Increase/(Decrease) (Dollars in millions) 2024 2023 2022 2024/2023 2023/2022 Gross written premiums $ 18,232 $ 16,637 $ 13,952 9.6 % 19.2 % Net written premiums 15,814 14,730 12,344 7.4 % 19.3 % REVENUES: Premiums earned $ 15,187 $ 13,443 $ 11,787 13.0 % 14.0 % Net investment income 1,954 1,434 830 36.3 % 72.7 % Net gains (losses) on investments 19 (276) (455) NM (39.3) % Other income (expense) 121 (14) (102) NM (86.3) % Total revenues 17,281 14,587 12,060 18.5 % 20.9 % CLAIMS AND EXPENSES: Incurred losses and loss adjustment expenses 11,305 8,427 8,100 34.1 % 4.0 % Commission, brokerage, taxes and fees 3,300 2,952 2,528 11.8 % 16.7 % Other underwriting expenses 938 846 682 10.9 % 24.1 % Corporate expenses 95 73 61 30.5 % 19.9 % Interest, fees and bond issue cost amortization expense 149 134 101 11.1 % 33.2 % Total claims and expenses 15,787 12,432 11,472 27.0 % 8.4 % INCOME (LOSS) BEFORE TAXES 1,493 2,154 588 (30.7) % NM Income tax expense (benefit) 120 (363) (9) NM NM NET INCOME (LOSS) $ 1,373 $ 2,517 $ 597 (45.4) % NM RATIOS: Point Change Loss ratio 74.4 % 62.7 % 68.7 % 11.7 (6.0) Commission and brokerage ratio 21.7 % 22.0 % 21.4 % (0.3) 0.6 Other underwriting expense ratio 6.2 % 6.3 % 5.8 % (0.1) 0.5 Combined ratio 102.3 % 90.9 % 96.0 % 11.4 (5.1) At December 31, Percentage Increase/(Decrease) (Dollars in millions, except per share amounts) 2024 2023 2022 2024/2023 2023/2022 Balance sheet data: Total investments and cash $ 41,531 $ 37,142 $ 29,872 11.8 % 24.3 % Total assets 56,341 49,399 39,966 14.1 % 23.6 % Loss and loss adjustment expense reserves 29,889 24,604 22,065 21.5 % 11.5 % Total debt 3,587 3,385 3,084 6.0 % 9.8 % Total liabilities 42,466 36,197 31,525 17.3 % 14.8 % Shareholders' equity 13,875 13,202 8,441 5.1 % 56.4 % Book value per share 322.97 304.29 215.54 6.1 % 41.2 % (NM - not meaningful) (Some amounts may not reconcile due to rounding.) Revenues.
The following table displays a summary of the consolidated net income (loss), ratios and shareholders’ equity for the periods indicated: Years Ended December 31, Percentage Increase/(Decrease) (Dollars in millions) 2025 2024 2023 2025/2024 2024/2023 Gross written premiums $ 17,706 $ 18,232 $ 16,637 (2.9) % 9.6 % Net written premiums 15,513 15,814 14,730 (1.9) % 7.4 % REVENUES: Premiums earned $ 15,560 $ 15,187 $ 13,443 2.5 % 13.0 % Net investment income 2,124 1,954 1,434 8.7 % 36.3 % Net gains (losses) on investments (143) 19 (276) NM NM Other income (expense) (45) 121 (14) NM NM Total revenues 17,496 17,281 14,587 1.2 % 18.5 % CLAIMS AND EXPENSES: Incurred losses and loss adjustment expenses 10,859 11,305 8,427 (3.9) % 34.1 % Commission, brokerage, taxes and fees 3,461 3,300 2,952 4.9 % 11.8 % Other underwriting expenses 1,029 938 846 9.7 % 10.9 % Corporate expenses 109 95 73 14.6 % 30.5 % Interest, fees and bond issue cost amortization expense 151 149 134 0.9 % 11.1 % Total claims and expenses 15,609 15,787 12,432 (1.1) % 27.0 % INCOME (LOSS) BEFORE TAXES 1,887 1,493 2,154 26.4 % (30.7) % Income tax expense (benefit) 296 120 (363) NM NM NET INCOME (LOSS) $ 1,591 $ 1,373 $ 2,517 15.9 % (45.4) % RATIOS: Point Change Loss ratio 69.8 % 74.4 % 62.7 % (4.6) 11.7 Commission and brokerage ratio 22.2 % 21.7 % 22.0 % 0.5 (0.3) Other underwriting expense ratio 6.6 % 6.2 % 6.3 % 0.4 (0.1) Combined ratio 98.6 % 102.3 % 90.9 % (3.7) 11.4 At December 31, Percentage Increase/(Decrease) (Dollars in millions, except per share amounts) 2025 2024 2023 2025/2024 2024/2023 Balance sheet data: Total investments and cash $ 45,429 $ 41,531 $ 37,142 9.4 % 11.8 % Total assets 62,514 56,341 49,399 11.0 % 14.1 % Loss and loss adjustment expense reserves 34,312 29,889 24,604 14.8 % 21.5 % Total debt 3,589 3,587 3,385 — % 6.0 % Total liabilities 47,054 42,466 36,197 10.8 % 17.3 % Shareholders' equity 15,461 13,875 13,202 11.4 % 5.1 % Book value per share 379.83 322.97 304.29 17.6 % 6.1 % (NM - not meaningful) (Some amounts may not reconcile due to rounding.) Revenues.
The following table presents the underwriting results and ratios for the Reinsurance segment for the periods indicated: Years Ended December 31, 2024/2023 2023/2022 (Dollars in millions) 2024 2023 2022 Variance % Change Variance % Change Gross written premiums $ 12,941 $ 11,460 $ 9,246 $ 1,481 12.9 % $ 2,214 23.9 % Net written premiums 11,969 10,802 8,917 1,167 10.8 % 1,884 21.1 % Premiums earned $ 11,412 $ 9,799 $ 8,596 $ 1,613 16.5 % $ 1,203 14.0 % Incurred losses and LAE 7,103 5,690 5,962 1,413 24.8 % (272) (4.6) % Commission and brokerage 2,837 2,520 2,116 317 12.6 % 404 19.1 % Other underwriting expenses 290 254 216 36 14.1 % 38 17.6 % Underwriting gain (loss) $ 1,181 $ 1,334 $ 302 $ (153) (11.5) % $ 1,032 NM Point Chg Point Chg Loss ratio 62.2 % 58.1 % 69.4 % 4.2 (11.3) Commission and brokerage ratio 24.9 % 25.7 % 24.6 % (0.8) 1.1 Other underwriting expense ratio 2.5 % 2.6 % 2.5 % (0.1) 0.1 Combined ratio 89.7 % 86.4 % 96.5 % 3.3 (10.1) (NM, not meaningful) (Some amounts may not reconcile due to rounding.) Premiums.
The following table presents the underwriting results and ratios for the Reinsurance segment for the periods indicated: Years Ended December 31, 2025/2024 2024/2023 (Dollars in millions) 2025 2024 2023 Variance % Change Variance % Change Gross written premiums $ 12,825 $ 12,941 $ 11,460 $ (116) (0.9) % $ 1,481 12.9 % Net written premiums 11,791 11,969 10,802 (178) (1.5) % 1,167 10.8 % Premiums earned $ 11,732 $ 11,412 $ 9,799 $ 320 2.8 % $ 1,613 16.5 % Incurred losses and LAE 7,517 7,103 5,690 414 5.8 % 1,413 24.8 % Commission and brokerage 2,952 2,837 2,520 114 4.0 % 317 12.6 % Other underwriting expenses 291 290 254 1 0.2 % 36 14.1 % Underwriting gain (loss) $ 972 $ 1,181 $ 1,334 $ (209) (17.7) % $ (153) (11.5) % Point Chg Point Chg Loss ratio 64.1 % 62.2 % 58.1 % 1.8 4.2 Commission and brokerage ratio 25.2 % 24.9 % 25.7 % 0.3 (0.8) Other underwriting expense ratio 2.5 % 2.5 % 2.6 % (0.1) (0.1) Combined ratio 91.7 % 89.7 % 86.4 % 2.1 3.3 (NM, not meaningful) (Some amounts may not reconcile due to rounding.) Premiums.
Pursuant to the Fixing America’s Surface Transportation Act Modernization and Simplification of Regulation S-K, comparisons between 2023 and 2022 have been omitted from this Form 10-K but can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Form 10-K for the year ended December 31, 2023.
Comparisons between 2024 and 2023 have been omitted from this Form 10-K but can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Form 10-K for the year ended December 31, 2024.
Based on this analysis, the Company may adjust the allowance for uncollectible reinsurance or charge off reinsurer balances that are determined to be uncollectible.
The allowance for uncollectible 55 Table of Contents reinsurance recoverable includes an allowance for disputed balances. Based on this analysis, the Company may adjust the allowance for uncollectible reinsurance or charge off reinsurer balances that are determined to be uncollectible.
The following table presents the underwriting results and ratios for the Insurance segment for the periods indicated: Years Ended December 31, 2024/2023 2023/2022 (Dollars in millions) 2024 2023 2022 Variance % Change Variance % Change Gross written premiums $ 5,078 $ 4,888 $ 4,426 $ 191 3.9 % $ 462 10.4 % Net written premiums 3,678 3,704 3,223 (26) (0.7) % 481 14.9 % Premiums earned $ 3,579 $ 3,420 $ 2,998 $ 159 4.6 % $ 422 14.1 % Incurred losses and LAE 3,622 2,471 2,040 1,150 46.5 % 431 21.1 % Commission and brokerage 439 410 399 29 7.0 % 11 2.7 % Other underwriting expenses 615 556 438 59 10.6 % 119 27.1 % Underwriting gain (loss) $ (1,097) $ (18) $ 121 $ (1,079) NM $ (139) NM Point Chg Point Chg Loss ratio 101.2 % 72.3 % 68.1 % 28.9 4.2 Commission and brokerage ratio 12.3 % 12.0 % 13.3 % 0.3 (1.3) Other underwriting expense ratio 17.2 % 16.3 % 14.6 % 0.9 1.7 Combined ratio 130.7 % 100.5 % 96.0 % 30.1 4.6 (Some amounts may not reconcile due to rounding.) Premiums.
The following table presents the underwriting results and ratios for the Insurance segment for the periods indicated: Years Ended December 31, 2025/2024 2024/2023 (Dollars in millions) 2025 2024 2023 Variance % Change Variance % Change Gross written premiums $ 4,790 $ 5,078 $ 4,888 $ (288) (5.7) % $ 191 3.9 % Net written premiums 3,638 3,678 3,704 (39) (1.1) % (26) (0.7) % Premiums earned $ 3,718 $ 3,579 $ 3,420 $ 139 3.9 % $ 159 4.6 % Incurred losses and LAE 3,050 3,622 2,471 (571) (15.8) % 1,150 46.5 % Commission and brokerage 488 439 410 49 11.2 % 29 7.0 % Other underwriting expenses 721 615 556 106 17.3 % 59 10.6 % Underwriting gain (loss) $ (541) $ (1,097) $ (18) $ 555 (50.6) % $ (1,079) NM Point Chg Point Chg Loss ratio 82.0 % 101.2 % 72.3 % (19.2) 28.9 Commission and brokerage ratio 13.1 % 12.3 % 12.0 % 0.9 0.3 Other underwriting expense ratio 19.4 % 17.2 % 16.3 % 2.2 0.9 Combined ratio 114.6 % 130.7 % 100.5 % (16.1) 30.1 (Some amounts may not reconcile due to rounding.) Premiums.
As such, until these asset values are monetized and the resultant income is distributed, they are subject to volatile results of future increases or decreases in the asset value. 41 Table of Contents The following table shows the components of net investment income for the periods indicated: Years Ended December 31, (Dollars in millions) 2024 2023 2022 Fixed maturities $ 1,481 $ 1,153 $ 742 Equity securities 3 3 16 Short-term investments and cash 195 140 28 Other invested assets Limited partnerships 206 122 75 Other 104 59 29 Gross investment income before adjustments 1,989 1,477 890 Funds held interest income (expense) 26 10 2 Future policy benefit reserve income (expense) (1) (1) — Gross investment income 2,013 1,486 892 Investment expenses 59 53 62 Net investment income $ 1,954 $ 1,434 $ 830 (Some amounts may not reconcile due to rounding.) The following tables show a comparison of various investment yields for the periods indicated: 2024 2023 2022 Annualized pre-tax yield on average cash and invested assets 4.9 % 4.1 % 2.7 % Annualized after-tax yield on average cash and invested assets 4.2 % 3.6 % 2.3 % Annualized return on invested assets 4.9 % 3.3 % 1.2 % 2024 2023 2022 Fixed income portfolio total return 4.0 % 6.8 % (5.9) % Bloomberg U.S.
The following table shows the components of net investment income for the periods indicated: Years Ended December 31, (Dollars in millions) 2025 2024 2023 Fixed maturities $ 1,572 $ 1,481 $ 1,153 Equity securities 4 3 3 Short-term investments and cash 169 195 140 Other invested assets Limited partnerships 277 206 122 Other 124 104 59 Gross investment income before adjustments 2,146 1,989 1,477 Funds held interest income (expense) 26 26 10 Future policy benefit reserve income (expense) (1) (1) (1) Gross investment income 2,172 2,013 1,486 Investment expenses 48 59 53 Net investment income $ 2,124 $ 1,954 $ 1,434 (Some amounts may not reconcile due to rounding.) The following tables show a comparison of various investment yields for the periods indicated: 2025 2024 2023 Annualized pre-tax yield on average cash and invested assets 4.8 % 4.9 % 4.1 % Annualized after-tax yield on average cash and invested assets 4.0 % 4.2 % 3.6 % Annualized return on invested assets 4.5 % 4.9 % 3.3 % 2025 2024 2023 Fixed income portfolio total return 8.5 % 4.0 % 6.8 % Bloomberg U.S.
The increase was mainly due to unfavorable development on prior years attritional losses of $787 million, an increase of $277 million in current year attritional losses and an increase in current year catastrophe losses of $100 million, partially offset by favorable development on prior years catastrophe losses of $14 million.
The decrease was mainly due to a decrease in unfavorable development on prior years attritional losses of $601 million and a decrease in current year catastrophe losses of $79 million, partially offset by an increase of $101 million in current year attritional losses and a decrease in favorable development on prior years catastrophe losses of $9 million.
Commission and brokerage and other underwriting expenses remained relatively flat year over year. Critical Accounting Estimates The following is a summary of the critical accounting estimates related to accounting estimates that (1) require management to make assumptions about highly uncertain matters and (2) could materially impact the consolidated financial statements if management made different assumptions. Loss and LAE Reserves.
Critical Accounting Estimates The following is a summary of the critical accounting estimates related to accounting estimates that (1) require management to make assumptions about highly uncertain matters and (2) could materially impact the consolidated financial statements if management made different assumptions. Loss and LAE Reserves. Our most critical accounting estimate is the determination of our loss and LAE reserves.
At December 31, 2024, we had net unrealized losses on our available for sale fixed maturity securities, net of tax, of $849 million, compared to net unrealized losses on our available for sale fixed maturity securities, net of tax, of $723 million at December 31, 2023.
At December 31, 2025, we had net unrealized gains on our fixed maturity securities, net of tax, of $5 million, compared to net unrealized losses on our fixed maturity securities, net of tax, of $849 million at December 31, 2024.
See also ITEM 1C, “Cybersecurity”. Expected Cash Outflows. The following table shows our significant expected cash outflows for the period indicated.
See also ITEM 1A, “Risk Factors” and ITEM 1C, “Cybersecurity”. 64 Table of Contents Expected Cash Outflows. The following table shows our significant expected cash outflows for the period indicated.
We assign our business to exposure groupings so that the underlying exposures have reasonably homogeneous loss development characteristics and are large enough to facilitate credible estimation of ultimate losses. We periodically review our exposure groupings, and we may change our groupings over time as our business changes. We currently use approximately 250 exposure groupings to develop our reserve estimates.
We sort our reserves by segment into exposure groupings for actuarial analysis. We assign our business to exposure groupings so that the underlying exposures have reasonably homogeneous loss development characteristics and are large enough to facilitate credible estimation of ultimate losses. We periodically review our exposure groupings, and we may change our groupings over time as our business changes.
The following table presents the incurred losses and LAE for the Insurance segment for the periods indicated: Years Ended December 31, (Dollars in millions) Current Year Ratio %/ Pt Change Prior Years Ratio %/ Pt Change Total Incurred Ratio %/ Pt Change 2024 Attritional $ 2,443 68.3 % $ 1,072 30.0 % $ 3,515 98.2 % Catastrophes 120 3.4 % (13) (0.4) % 107 3.0 % Total segment $ 2,563 71.6 % $ 1,059 29.6 % $ 3,622 101.2 % 2023 Attritional $ 2,166 63.3 % $ 285 8.3 % $ 2,451 71.7 % Catastrophes 20 0.6 % — — % 21 0.6 % Total segment $ 2,186 63.9 % $ 285 8.3 % $ 2,471 72.3 % 2022 Attritional $ 1,882 62.8 % $ 34 1.1 % $ 1,916 63.9 % Catastrophes 125 4.2 % — — % 125 4.2 % Total segment $ 2,006 66.9 % $ 34 1.1 % $ 2,040 68.1 % Variance 2024/2023 Attritional $ 277 4.9 pts $ 787 21.6 pts $ 1,064 26.6 pts Catastrophes 100 2.8 pts (14) (0.4) pts 86 2.4 pts Total segment $ 377 7.7 pts $ 773 21.2 pts $ 1,150 28.9 pts Variance 2023/2022 Attritional $ 284 0.6 pts $ 252 7.2 pts $ 535 7.8 pts Catastrophes (104) (3.6) pts — — pts (104) (3.6) pts Total segment $ 180 (3.0) pts $ 251 7.2 pts $ 431 4.2 pts (Some amounts may not reconcile due to rounding.) Incurred losses and LAE increased by 46.5% to $3.6 billion in 2024, compared to $2.5 billion in 2023.
The following table presents the incurred losses and LAE for the Insurance segment for the periods indicated: Years Ended December 31, (Dollars in millions) Current Year Ratio %/ Pt Change Prior Years Ratio %/ Pt Change Total Incurred Ratio %/ Pt Change 2025 Attritional $ 2,543 68.4 % $ 471 12.7 % $ 3,014 81.1 % Catastrophes 41 1.1 % (5) (0.1) % 36 1.0 % Total segment $ 2,584 69.5 % $ 466 12.5 % $ 3,050 82.0 % 2024 Attritional $ 2,443 68.3 % $ 1,072 30.0 % $ 3,515 98.2 % Catastrophes 120 3.4 % (13) (0.4) % 107 3.0 % Total segment $ 2,563 71.6 % $ 1,059 29.6 % $ 3,622 101.2 % 2023 Attritional $ 2,166 63.3 % $ 285 8.3 % $ 2,451 71.7 % Catastrophes 20 0.6 % — — % 21 0.6 % Total segment $ 2,186 63.9 % $ 285 8.3 % $ 2,471 72.3 % Variance 2025/2024 Attritional $ 101 0.2 pts $ (601) (17.3) pts $ (501) (17.1) pts Catastrophes (79) (2.3) pts 9 0.2 pts (71) (2.0) pts Total segment $ 21 (2.1) pts $ (593) (17.0) pts $ (571) (19.2) pts Variance 2024/2023 Attritional $ 277 4.9 pts $ 787 21.6 pts $ 1,064 26.6 pts Catastrophes 100 2.8 pts (14) (0.4) pts 86 2.4 pts Total segment $ 377 7.7 pts $ 773 21.2 pts $ 1,150 28.9 pts (Some amounts may not reconcile due to rounding.) Incurred losses and LAE decreased by 15.8% to $3.1 billion in 2025, compared to $3.6 billion in 2024.

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