EVEREST GROUP, LTD.
For the period ended Jun 30, 2025. Filed Aug 1, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 1, 2025
EG$411.11-1.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-02.
0001095073-25-000042
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-01.
0001095073-25-000061
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 113 previous paragraphs and 129 current paragraphs.
61 unchanged; 42 reworded; 25 added; 10 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 17 previous and 22 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (25)
Current report
Premiums. Gross written premiums decreased by 0.9% remaining relatively constant at $4.7 billion for the three months ended June 30, 2025, compared to $4.7 billion for the three months ended June 30, 2024. The decrease reflects a $45 million, or 3.1%, decrease in our insurance business and a $34 million, or 60.5%, decrease in business within the Other segment, partially offset by a $34 million, or 1.1%, increase in our reinsurance business. The decrease in insurance premiums compared to the prior year period was primarily due to portfolio actions taken on specialty casualty lines of business, partially offset by an increase in other specialty business and accident and health business. Gross written premiums within Other decreased by $35 million as this segment generally represents lines of business that have been discontinued. The increase in reinsurance premiums was primarily due to property pro rata and property catastrophe excess of loss lines of business, partially offset by a decrease in financial lines business driven by actions taken on our North America casualty business.
Current report
Incurred losses and LAE increased by 7.0% to $2.5 billion for the three months ended June 30, 2025, compared to $2.3 billion for the three months ended June 30, 2024, primarily due to an increase of $233 million in current year attritional losses and an increase in unfavorable development on prior year attritional losses of $59 million, partially offset by a decrease of $131 million in current year catastrophe losses. The increase in current year attritional losses was mainly due to the impact of the increase in premiums earned. The unfavorable development on prior year attritional losses was primarily related to aviation losses associated with the Russia/Ukraine war of $98 million, partially offset by net favorable prior year development of $39 million, driven by the release of reserves from prior underwriting years for the property line of business. The net unfavorable prior year loss development was recorded in the Reinsurance segment.
Current report
In second quarter of 2025, the United Kingdom’s High Court concluded that that the confiscation of certain aircraft was covered under the war provision within certain reinsurance contracts. As a result of the court’s decision, the Company increased its net ultimate loss reserve for contracts that were exposed to the war in the Ukraine by $98 million ($84 million net of reinstatement premiums). The current year catastrophe losses of $20 million for the three months ended
Current report
June 30, 2025 related primarily to the 2025 U.S. Midwest convective storms ($12 million) as well as development on the first quarter 2025 Myanmar earthquake ($7 million). The $151 million of current year catastrophe losses for the three months ended June 30, 2024 related primarily to the 2024 Dubai floods ($40 million), the 2024 Germany floods ($40 million), the 2024 Brazil Floods ($35 million) and the 2024 Taiwan earthquake ($23 million).
Current report
Incurred losses and LAE increased by 18.0% to $5.4 billion for the six months ended June 30, 2025, compared to $4.5 billion for the six months ended June 30, 2024, primarily due to an increase of $441 million in current year attritional losses, an increase of $318 million in current year catastrophe losses and an increase in unfavorable development on prior year attritional losses of $59 million. The increase in current year attritional losses was mainly due to the impact of the increase in underlying exposures due to increased premiums earned. The unfavorable development on prior year attritional losses was primarily related to aviation losses associated with the Russia/Ukraine war of $98 million, partially offset by net favorable prior year development of $39 million, driven by the release of reserves from prior underwriting years for the property line of business. The net unfavorable prior year loss development was recorded in the Reinsurance segment. In the second quarter of 2025, the United Kingdom’s High Court concluded that that the confiscation of certain aircraft was covered under the war provision within certain reinsurance contracts. As a result of the court’s decision, the Company increased its net ultimate loss reserve for contracts that were exposed to the war in the Ukraine by $98 million ($84 million net of reinstatement premiums). The current year catastrophe losses of $554 million for the six months ended June 30, 2025 related primarily to the 2025 Southern California wildfires ($513 million), the first quarter 2025 Myanmar earthquake ($29 million) and the 2025 U.S. Midwest convective storms ($12 million). The $236 million of current year catastrophe losses for the six months ended June 30, 2024 related primarily to the 2024 Baltimore bridge collapse ($70 million), the 2024 Dubai floods ($40 million), the 2024 Germany floods ($40 million), the 2024 Brazil Floods ($35 million) and the 2024 Taiwan earthquake ($23 million).
Current report
Other Underwriting Expenses. Other underwriting expenses were $254 million and $234 million for the three months ended June 30, 2025 and June 30, 2024, respectively. Other underwriting expenses were $492 million and $458 million for the six months ended June 30, 2025 and 2024, respectively. The increases in other underwriting expenses were driven by the increase in premiums earned.
Current report
On July 4, 2025, The One Big Beautiful Bill was signed into law. The Company is still evaluating the effects of the new law.
Current report
The loss ratio component decreased by 0.7 points to 61.9% for the three months ended June 30, 2025, compared to 62.6% for the three months ended June 30, 2024, mainly due to a $131 million decrease in catastrophe losses. The loss ratio component increased by 6.5 points to 68.4% for the six months ended June 30, 2025, compared to 61.9% for the six months ended June 30, 2024, primarily due to an increase of $441 million in current year attritional losses, an increase of $318 million in current year catastrophe losses and unfavorable prior year development on attritional losses of $59 million, mainly related to aviation losses associated with the Russia/Ukraine war of $98 million, partially offset by net favorable prior year development of $39 million, driven by the release of reserves from prior underwriting years for the property line of business. The net unfavorable prior year loss development was recorded in the Reinsurance segment.
Current report
The commission and brokerage ratio components increased to 22.0% for the three months ended June 30, 2025, compared to 21.4% for the three months ended June 30, 2024, and increased to 21.7% for the six months ended June 30, 2025, compared to 21.4% for the six months ended June 30, 2024. The quarter over quarter variance was mainly due to changes in the mix of business and consistent with increase in premiums earned.
Current report
Net written premiums increased by 1.4% remaining relatively consistent at $3.1 billion for the three months ended June 30, 2025 from $3.0 billion for the three months ended June 30, 2024. Net written premiums decreased by 1.5% to $5.9 billion for the six months ended June 30, 2025, compared to $6.0 billion for the six months ended June 30, 2024. The decrease was driven by higher retention in certain lines of business and overall mix of business.
Current report
Incurred losses increased by 5.2% to $1.8 billion for the three months ended June 30, 2025, compared to $1.7 billion for the three months ended June 30, 2024. The increase was primarily due to an increase of $165 million in current year attritional losses and an increase of unfavorable development on prior year attritional losses of $59 million, partially offset by a decrease of $137 million in current year catastrophe losses. The increase in current year attritional losses was mainly related to the impact of the increase in premiums earned. The unfavorable development on prior year attritional losses was primarily related to aviation losses associated with the Russia/Ukraine war of $98 million, partially offset by net favorable prior year development of $39 million, driven by the release of reserves from prior underwriting years for the property line of business. In the second quarter of 2025, The United Kingdom’s High Court concluded that that the confiscation of certain aircraft was covered under the war provision within certain reinsurance contracts. As a result of the court’s decision, the Company increased its net ultimate loss reserve for contracts that were exposed to the war in the Ukraine by $98 million ($84 million net of reinstatement premiums). There were no current year catastrophe losses for the three months ended June 30, 2025. The $137 million of current year catastrophe losses for the three months ended June 30, 2024 related primarily to the 2024 Dubai floods ($40 million), the 2024 Germany floods ($39 million), the 2024 Brazil Floods ($35 million) and the 2024 Taiwan earthquake ($21 million).
Current report
Incurred losses increased by 20.2% to $4.0 billion for the six months ended June 30, 2025, compared to $3.3 billion for the six months ended June 30, 2024. The increase was primarily due to an increase of $305 million in current year attritional losses, an increase of $307 million in current year catastrophe losses and an increase of unfavorable development on prior year attritional losses of $59 million. The increase in current year attritional losses was mainly related to the impact of the increase in premiums earned. The unfavorable development on prior year attritional losses was primarily related to aviation losses associated with the Russia/Ukraine war of $98 million, partially offset by net favorable prior year development of $39 million, driven by the release of reserves from prior underwriting years for the property line of business. In the second quarter of 2025, the United Kingdom’s High Court concluded that that the confiscation of certain aircraft was covered under the war provision within certain reinsurance contracts. As a result of the court’s decision, the Company increased its net ultimate loss reserve for contracts that were exposed to the war in the Ukraine by $98 million ($84 million net of reinstatement premiums). The current year catastrophe losses of $523 million for the six months ended June 30, 2025 related primarily to the 2025 Southern California wildfires ($503 million) and the first quarter 2025 Myanmar earthquake ($20 million). The $217 million of current year catastrophe losses for the six months ended June 30, 2024 related primarily to the 2024 Baltimore bridge collapse ($65 million), the 2024 Dubai floods ($40 million), the 2024 Germany floods ($39 million), the 2024 Brazil Floods ($35 million) and the 2024 Taiwan earthquake ($21 million).
Current report
Segment other underwriting expenses increased to $76 million for the three months ended June 30, 2025 from $72 million for the three months ended June 30, 2024. Segment other underwriting expenses increased to $147 million for the six months ended June 30, 2025, compared to $142 million for the six months ended June 30, 2024. The increases were mainly due to increased expenditures supporting the increased premium volume of the segment.
Current report
Premiums. Gross written premiums decreased by 3.1% to $1.4 billion for the three months ended June 30, 2025, compared to $1.5 billion for the three months ended June 30, 2024. The decrease in insurance premiums was primarily due to portfolio actions taken on specialty casualty lines of business, partially offset by an increase in other specialty business and accident and health business. Gross written premiums decreased by 2.3% to $2.6 billion for the six months ended June 30, 2025, compared to $2.6 billion for the six months ended June 30, 2024. The decrease in insurance premiums was primarily due to portfolio actions taken on specialty casualty lines of business, partially offset by an increase in other specialty business and property/short tail business.
Current report
Net written premiums increased by 1.3% remaining constant at $1.0 billion for the three months ended June 30, 2025, compared to $1.0 billion for the three months ended June 30, 2024, primarily due to business mix and higher retention in certain lines of business. Net written premiums of $1.9 billion for the six months ended June 30, 2025, remained consistent with the $1.9 billion for the six months ended June 30, 2024.
Current report
Incurred losses and LAE increased by 12.7% to $1.3 billion for the six months ended June 30, 2025, compared to $1.1 billion for the six months ended June 30, 2024. The increase was mainly due to an increase of $144 million in current year attritional losses and an increase in current year catastrophe losses of $1 million. The increase in current year attritional losses was primarily due to the impact of the increase in premiums earned and strengthening of loss selections in casualty lines, partially offset by changes in mix of business. The current year catastrophe losses of $20 million for the six months ended June 30, 2025 related primarily to the first quarter 2025 Myanmar earthquake ($9 million), the 2025 Southern
Current report
California wildfires ($7 million) and the 2025 U.S. Midwest convective storms ($5 million). The $20 million of current year catastrophe losses for the six months ended June 30, 2024 related to the 2024 second quarter U.S. convective storms ($12 million), the 2024 Baltimore bridge collapse ($4 million), the 2024 Taiwan earthquake ($2 million) and the 2024 Germany floods ($1 million).
Current report
Segment Expenses. Commission and brokerage expenses increased by 8.9% to $121 million for the three months ended June 30, 2025, compared to $111 million for the three months ended June 30, 2024. Commission and brokerage expenses increased by 8.6% to $233 million for the six months ended June 30, 2025, compared to $215 million for the six months ended June 30, 2024. The increases were mainly due to changes in the mix of business.
Current report
Premiums. Gross written premiums decreased by 60.5% to $22 million for the three months ended June 30, 2025, compared to $57 million for the three months ended June 30, 2024. Gross written premiums decreased by 62.4% to $50 million for the six months ended June 30, 2025, compared to $133 million for the six months ended June 30, 2024.
Current report
Net written premiums decreased by 53.5% to $20 million for the three months ended June 30, 2025, compared to $42 million for the three months ended June 30, 2024. Net written premiums decreased by 54.6% to $47 million for the six months ended June 30, 2025, compared to $103 million for the six months ended June 30, 2024.
Current report
Premiums earned decreased by 33.2% to $35 million for the three months ended June 30, 2025, compared to $52 million for the three months ended June 30, 2024. Premiums earned decreased by 35.2% to $67 million for the six months ended June 30, 2025, compared to $104 million for the six months ended June 30, 2024.
Current report
Incurred Losses and LAE. Incurred losses and LAE increased by 46.5% to $58 million for the three months ended June 30, 2025, compared to $39 million for the three months ended June 30, 2024. Incurred losses and LAE increased by 2.3% to $87 million for the six months ended June 30, 2025, compared to $85 million for the six months ended June 30, 2024. The increase in incurred losses was due to $20 million of catastrophe losses related to the sports and leisure business and a $20 million strengthening of reserves on the current accident year on lines within this segment.
Current report
We model our potential exposure to catastrophe losses arising from a single event. Projected catastrophe losses are generally summarized in terms of probable maximum loss (“PML”). A full discussion on PMLs is included in our December 31, 2024 Form 10-K filing in Part 2, Item 7 (MD&A) in “Liquidity and Capital Resources” section. We focus on the projected net economic loss from a catastrophe in a given zone as compared to our shareholders’ equity. Economic loss is the PML exposure, net of third party reinsurance, reduced by estimated reinstatement premiums to renew coverage and estimated income taxes. In our December 31, 2024 Form 10-K, we reported that our projected net economic loss from our largest projected 100-year event represented approximately 11.0% of our December 31, 2024 shareholders’ equity. During the first half of 2025, our net exposure to catastrophes has changed due to the market conditions and business decisions. As a result, our projected net economic loss from our largest 100-year event in a given zone represents approximately 12.2% of our June 30, 2025 shareholders’ equity.
Current report
The table below reflects the Company’s PML exposure, net of third party reinsurance at various return periods for its top zones/perils (as ranked by largest 1 in 100 year economic loss) based on projection data as of July 1, 2025.
Current report
The projected economic losses, defined as PML exposures, net of third party reinsurance, reinstatement premiums and estimated income taxes, for the top zones/perils scheduled are as follows:
Removed paragraphs (10)
Previous report
Incurred losses and LAE increased by 29.4% to $2.9 billion for the three months ended March 31, 2025, compared to $2.2 billion for the three months ended March 31, 2024, primarily due to an increase of $208 million in current year attritional losses and an increase of $449 million in current year catastrophe losses. The increase in current year attritional losses was mainly due to $83 million of losses from the Washington D.C. aviation accident as well as the impact of the increase in underlying exposures, due to increased premiums earned. The current year catastrophe losses of $534 million for the three months ended March 31, 2025 related primarily to the 2025 Southern California wildfires ($512 million) and the Myanmar earthquake ($22 million). The $85 million of current year catastrophe losses for the three months ended March 31, 2024 related primarily to the 2024 Baltimore bridge collapse ($70 million) and the 2024 U.S. East Coast convective storms ($15 million).
Previous report
Other Underwriting Expenses. Other underwriting expenses were $238 million and $224 million for the three months ended March 31, 2025 and March 31, 2024, respectively. The increase in other underwriting expenses was mainly due to the impact of the increase in premiums earned as well as the continued build out of our insurance operations, including an expansion of the international insurance platform.
Previous report
The loss ratio component increased by 13.8 points to 75.1% for the three months ended March 31, 2025, compared to 61.3% for the three months ended March 31, 2024 mainly due to a $449 million increase in catastrophe losses and a $208 million increase in attritional losses which was largely attributable to $83 million in losses from the Washington D.C. aviation accident as well as impact of the increase in underlying exposures, due to increased premiums earned.
Previous report
The commission and brokerage ratio components remained consistent at 21.4% for both the three months ended March 31, 2025 and the three months ended March 31, 2024.
Previous report
Net written premiums decreased by 4.5% to $2.8 billion for the three months ended March 31, 2025, compared to $2.9 billion for the three months ended March 31, 2024, which was mainly due to higher cessions of the Company’s catastrophe excess of loss contracts to Mt. Logan Re.
Previous report
Incurred losses increased by 35.6% to $2.2 billion for the three months ended March 31, 2025, compared to $1.6 billion for the three months ended March 31, 2024. The increase was primarily due to an increase of $140 million in current year attritional losses and an increase of $443 million in current year catastrophe losses. The increase in current year attritional losses was mainly related to $77 million of losses from the Washington D.C. aviation accident, as well as the impact of the increase in premiums earned. The current year catastrophe losses of $523 million for the three months ended March 31, 2025 consisted of losses from the 2025 Southern California wildfires ($503 million) and the Myanmar earthquake ($20 million). The $80 million of current year catastrophe losses for the three months ended March 31, 2024 related primarily to the 2024 Baltimore bridge collapse ($65 million) and the 2024 U.S. East Coast convective storms ($15 million).
Previous report
Premiums. Gross written premiums decreased by 1.3% to $1.1 billion for the three months ended March 31, 2025, compared to $1.2 billion for the three months ended March 31, 2024. The decrease in insurance premiums was primarily due to portfolio actions taken on North America casualty lines and workers’ compensation lines, partially offset by an increase in property/short tail business and other specialty business.
Previous report
Net written premiums remained consistent at $896 million for the three months ended March 31, 2025 and $897 million for the three months ended March 31, 2024.
Previous report
Premiums. Gross written premiums decreased by 63.8% to $28 million for the three months ended March 31, 2025, compared to $77 million for the three months ended March 31, 2024. Net written premiums decreased by 55.3% to $27 million for the three months ended March 31, 2025, compared to $61 million for the three months ended March 31, 2024. Premiums earned decreased by 37.2% to $33 million for the three months ended March 31, 2025, compared to $52 million for the three months ended March 31, 2024. The decrease in gross written premiums, net written premiums and premiums earned are due to the lines of business included in this segment primarily being in run-off, except for a limited number of renewed and new policies written on the Company's paper by the purchaser of the sports and leisure business sold in October 2024, for a finite period of time post-closing.
Previous report
Incurred Losses and LAE. Incurred losses and LAE decreased by 35.6% to $30 million for the three months ended March 31, 2025, compared to $46 million for the three months ended March 31, 2024. Quarterly losses are primarily associated with the new and renewed sports and leisure business written on the company’s books.
Reworded paragraphs (42)
Previous wording
The following is a discussion of our results of operations, financial condition and liquidity and capital resources for the three months ended March 31, 2025. This discussion should be read in conjunction with the consolidated financial statements and related notes, under Part I - Item 1 of this Form 10-Q, as well as the audited consolidated financial statements and notes thereto for the year ended December 31, 2024, included in the Company’s most recent Form 10-K filing.
Current wording
The following is a discussion of our results of operations, financial condition and liquidity and capital resources for the three and six months ended June 30, 2025. This discussion should be read in conjunction with the consolidated financial statements and related notes, under Part I - Item 1 of this Form 10-Q, as well as the audited consolidated financial statements and notes thereto for the year ended December 31, 2024, included in the Company’s most recent Form 10-K filing.
Previous wording
Premiums. Gross written premiums decreased by 0.5% to $4.4 billion for the three months ended March 31, 2025, compared to $4.4 billion for the three months ended March 31, 2024, reflecting a $49 million, or 63.8%, decrease in business within the Other segment and a $15 million, or 1.3%, decrease in our insurance business, partially offset by a $44 million, or 1.4%, increase in our reinsurance business. The decrease in Other premiums was due to the lines of business included in this segment primarily being in run-off, except for a limited number of renewed and new policies written on the Company's paper by the purchaser of the sports and leisure business sold in October 2024, for a finite period of time post-closing. The decrease in insurance premiums was primarily due to portfolio actions taken on North America casualty lines and workers’ compensation lines, partially offset by an increase in property/short tail business and other specialty business. The increase in reinsurance premiums was primarily due to property catastrophe excess of loss business and property pro rata business.
Current wording
Gross written premiums decreased by 0.7% remaining relatively constant at $9.1 billion for the six months ended June 30, 2025, compared to $9.1 billion for the six months ended June 30, 2024. The decrease reflects an $83 million, or 62.4%, decrease within the Other segment and a $60 million, or 2.3%, decrease in our insurance business, partially offset by a $78 million, or 1.2%, increase in our reinsurance business. Gross written premiums within Other has decreased by $83 million as this segment generally represents lines of business that have been discontinued. The decrease in insurance premiums was primarily due to portfolio actions taken on specialty casualty lines of business, partially offset by an increase in other specialty business and property/short tail business. The increase in reinsurance premiums was primarily driven by property pro rata business and property catastrophe excess of loss business, partially offset by actions taken on our North America reinsurance casualty business.
Previous wording
Net written premiums decreased by 4.2% to $3.7 billion for the three months ended March 31, 2025, compared to $3.9 billion for the three months ended March 31, 2024. The larger percentage decrease in net written premiums compared to the percentage decrease in gross written premiums was mainly due to higher cessions of the Company’s catastrophe excess of loss contracts to Mt. Logan Re, Ltd. (“Mt. Logan Re”).
Current wording
Net written premiums increased by 0.8% remaining relatively constant at $4.1 billion for the three months ended June 30, 2025, compared to $4.1 billion for the three months ended June 30, 2024, primarily driven by higher retention in certain lines of business and overall mix of business. Net written premiums decreased by 1.6% to $7.9 billion for the six months ended June 30, 2025, compared to $8.0 billion for the six months ended June 30, 2024. The larger percentage decrease in net written premiums compared to the percentage decrease in gross written premiums was mainly due to overall mix of business.
Previous wording
Premiums earned increased by 5.5% to $3.9 billion during the three months ended March 31, 2025, compared to $3.7 billion during the three months ended March 31, 2024. The change in premiums earned relative to net written premiums was 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.
Current wording
Premiums earned increased by 8.1% to $4.0 billion during the three months ended June 30, 2025, compared to $3.7 billion during the three months ended June 30, 2024. Premiums earned increased by 6.8% to $7.8 billion for the six months ended June 30, 2025, compared to $7.3 billion for the six months ended June 30, 2024. The change in premiums earned relative to net written premiums was primarily the result of timing as the higher base premium written in 2024 is being earned through the 2025 period; premiums are earned ratably over the coverage period whereas written premiums are generally recorded at the initiation of the coverage period.
Previous wording
Other Income (Expense). We recorded other expense of $73 million and other income of $31 million for the three months ended March 31, 2025 and 2024, respectively. The change was primarily the result of fluctuations in foreign currency exchange rates. We recognized foreign currency exchange expense of $74 million for thethree months ended March 31, 2025 and foreign currency exchange income of$32 million for the three months ended March 31, 2024.
Current wording
Other Income (Expense). We recorded other expense of $27 million and other income of $23 million for the three months ended June 30, 2025 and 2024, respectively. We recorded other expense of $100 million and other income of $54 million for the six months ended June 30, 2025 and 2024, respectively. The changes were primarily the result of fluctuations in foreign currency exchange rates, in particular, the movements in the Euro and British Pound Sterling. We recognized foreign currency exchange expense of $60 million and foreign exchange currency income of $9 million for the three months ended June 30, 2025 and 2024, respectively. We recognized foreign currency exchange expense of $134 million and foreign currency exchange income of $41 million for the six months ended June 30, 2025 and 2024, respectively. The other expense incurred for the three and six months ended June 30, 2025 is partially offset by a $26.7 million pension plan settlement gain recognized in the second quarter of 2025 driven by the extinguishment of the Everest Reinsurance Company (“Everest Re”) retirement pension plan obligation liability.
Previous wording
Net Investment Income. Refer to Consolidated Investments Results Section below.
Current wording
Net Investment Income. Refer to the “Consolidated Investments Results” section below.
Previous wording
Net Gains (Losses) on Investments. Refer to Consolidated Investments Results Section below.
Current wording
Net Gains (Losses) on Investments. Refer to the “Consolidated Investments Results” section below.
Previous wording
Catastrophe losses and loss expenses typically have a material effect on our incurred losses and LAE results and can vary significantly from period to period. Losses from natural and man-made catastrophes contributed 13.9 percentage points to the combined ratio for the three months ended March 31, 2025, compared with 2.3 percentage points for the three months ended March 31, 2024.
Current wording
Catastrophe losses and loss expenses typically have a material effect on our incurred losses and LAE results and can vary significantly from period to period. Losses from natural catastrophes contributed 0.5 percentage points to the combined ratio for the three months ended June 30, 2025, compared with 4.1 percentage points in the corresponding period of 2024, and 7.1 percentage points to the combined ratio for the six months ended June 30, 2025, compared with 3.2 percentage points in the corresponding period of 2024.
Previous wording
Commission, Brokerage, Taxes and Fees. Commission, brokerage, taxes and fees increased by 5.4% to $824 million for the three months ended March 31, 2025, compared to $782 million for the three months ended March 31, 2024. The increase was primarily due to the impact of the increase in premiums earned and changes in the mix of business.
Current wording
Commission, Brokerage, Taxes and Fees. Commission, brokerage, taxes and fees increased by 11.5% to $880 million for the three months ended June 30, 2025, compared to $790 million for the three months ended June 30, 2024. Commission, brokerage, taxes and fees increased by 8.4% to $1.7 billion for the six months ended June 30, 2025, compared to $1.6 billion for the six months ended June 30, 2024. The increases were primarily due to the impact of the increase in premiums earned and changes in the mix of business.
Previous wording
Corporate Expenses. Corporate expenses, which are general operating expenses that are not allocated to segments, remained relatively consistent at $21 million and $22 million for the three months ended March 31, 2025 and 2024, respectively.
Current wording
Corporate Expenses. Corporate expenses, which are general operating expenses that are not allocated to segments, were $31 million and $22 million for the three months ended June 30, 2025 and 2024, respectively, and $52 million and $44 million for the six months ended June 30, 2025 and 2024, respectively. The increase in Corporate expenses for the three and six month periods ended June 30, 2025 are primarily due to a nonrecurring adjustment due to the curtailment of the employee benefit plan in 2024 as well as an increase in professional services related to the continued build out of our infrastructure.
Previous wording
Interest, Fees and Bond Issue Cost Amortization Expense. Interest, fees and other bond amortization expense was $38 million and $37 million for the three months ended March 31, 2025 and 2024, respectively. Interest expense was mainly impacted by the movement in the floating interest rate related to the Company’s long-term subordinated notes, which is reset quarterly per the note agreement, as well as variable interest rate costs on borrowings from FHLBNY.
Current wording
Interest, Fees and Bond Issue Cost Amortization Expense. Interest, fees and other bond amortization expense was $38 million and $37 million for the three months ended June 30, 2025 and 2024, respectively. Interest, fees and other bond amortization expense was $76 million and $75 million for the six months ended June 30, 2025 and 2024, respectively. The increases were mainly due to higher interest costs on the Federal Home Loan Bank of New York borrowing. Increases in interest expense were offset by a decrease 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 floating rate was 6.97% as of June 30, 2025, compared to 7.97% as of June 30, 2024.
Previous wording
Income Tax Expense (Benefit). Income tax expense was $39 million and $99 million for the three months ended March 31, 2025 and 2024, respectively. Income tax expense is primarily a function of the geographic location of the Company’s pre-tax income and the statutory tax rates in those jurisdictions. The effective tax rate (“ETR”) is primarily affected by tax-exempt investment income, foreign tax credits and dividends. Variations in the ETR generally result from changes in the relative levels of pre-tax income, including the impact of catastrophe losses and net capital gains (losses), among jurisdictions with different tax rates.
Current wording
Income Tax Expense (Benefit). Income tax expense was $135 million and $108 million for the three months ended June 30, 2025 and 2024, respectively. Income tax expense was $173 million and $207 million for the six months ended June 30, 2025 and 2024, respectively. The period over period increase in income tax expense is primarily a function of the geographic location of the Company’s pre-tax income and the statutory tax rates in those jurisdictions. The effective tax rate (“ETR”) is primarily affected by tax-exempt investment income, foreign tax credits and dividends. Variations in the ETR generally result from changes in the relative levels of pre-tax income, including the impact of catastrophe losses and net capital gains (losses), among jurisdictions with different tax rates.
Previous wording
Our net income was $210 million and $733 million for the three months ended March 31, 2025 and 2024, respectively. The period over period decrease in net income was primarily driven by the financial component fluctuations explained above.
Current wording
Our net income was $680 million and $724 million for the three months ended June 30, 2025 and 2024, respectively. Our net income was $890 million and $1.5 billion for the six months ended June 30, 2025 and 2024, respectively. The period over period changes in net income were primarily driven by the financial component fluctuations explained above.
Previous wording
Our combined ratio increased by 13.9 points to 102.7% for the three months ended March 31, 2025, compared to 88.8% for the three months ended March 31, 2024. The current year increase is primarily due to higher catastrophe losses and higher attritional losses in 2025. For further details, please refer to the analysis of combined ratio components below.
Current wording
Our combined ratio increased by 0.1 points to 90.4% for the three months ended June 30, 2025, compared to 90.3% for the three months ended June 30, 2024 and increased by 6.8 points to 96.4% for the six months ended June 30, 2025, compared to 89.6% for the six months ended June 30, 2024. The current year increase is primarily due to higher catastrophe losses. Refer to the analysis of combined ratio components below.
Previous wording
The other underwriting expense ratios slightly increased to 6.2% for the three months ended March 31, 2025, compared to 6.1% for the three months ended March 31, 2024.
Current wording
The other underwriting expense ratios increased to 6.4% for the three months ended June 30, 2025, compared to 6.3% for the three months ended June 30, 2024, and increased to 6.3% for the six months ended June 30, 2025, compared to 6.2% for the six months ended June 30, 2024. The slight increase for the three and six months was mainly due to growth while remaining relatively consistent year over year.
Previous wording
Shareholders’ equity increased by $264 million to $14.1 billion at March 31, 2025 from $13.9 billion at December 31, 2024, principally as a result of $289 million of unrealized appreciation on available for sale fixed maturity portfolio net of tax, $210 million of net income and $64 million of net foreign currency translation adjustments, partially offset by $200 million of treasury share purchases and $85 million of shareholder dividends.
Current wording
Shareholders’ equity increased by $1.1 billion to $15.0 billion at June 30, 2025 from $13.9 billion at December 31, 2024, principally as a result of $890 million of net income, $597 million of unrealized appreciation on available for sale fixed maturity portfolio net of tax, $228 million of net foreign currency translation adjustments and $6 million of share-based compensation transactions, partially offset by $400 million of share repurchases, $169 million of shareholder dividends and $8 million of net benefit plan obligation adjustments.
Previous wording
Net investment income increased by 7.5% to $491 million for the three months ended March 31, 2025, compared with net investment income of $457 million for the three months ended March 31, 2024. The increase for the three months ended March 31, 2025 was primarily the result of an increase of $34 million in income from fixed maturity investments, an increase of $11 million in short-term investments and an increase of $10 million in income from other invested assets, partially offset by a decline of $30 million in limited partnership income. The limited partnership income primarily reflects changes in their reported net asset values. As such, until these asset values are monetized and the resultant income is distributed, they are subject to volatile results of future increases or decreases in the asset value.
Current wording
Net investment income increased by 0.8% to $532 million for the three months ended June 30, 2025, compared with net investment income of $528 million for the three months ended June 30, 2024. The increase for the three months ended June 30, 2025 was primarily the result of an increase of $27 million in income from fixed maturity investments, partially offset by a decline of $10 million in income from short-term investments, a decline of $8 million in income from other alternative investments and a decline of $5 million in limited partnership income. Net investment income increased by 3.9% to $1.0 billion for the six months ended June 30, 2025, compared with investment income of $1.0 billion for the six months ended June 30, 2024. The increase for the six months ended June 30, 2025 was primarily the result of an increase of $61 million of income from fixed maturity investments, an increase of $2 million in income from other alternative investments and an increase of $1 million from short-term investments, partially offset by a decline of $35 million in limited partnership income. The limited partnership income primarily reflects changes in reported net asset values. 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.
Previous wording
Net gains (losses) on investments during the three months ended March 31, 2025 primarily relate to $5 million of losses due to the disposition of investments, $2 million of losses from fair value adjustments on equity securities and an increase to the allowance for credit losses of $1 million.
Current wording
Total net gains (losses) on investments during the three months ended June 30, 2025 primarily consist of $8 million of losses due to the disposition of investments and an increase to the allowance for credit losses of $2 million, partially offset by $5 million of gains from fair value adjustments on equity securities.
Previous wording
Our two reportable segments, Reinsurance and Insurance, each have executive leadership who are responsible for the overall performance of their respective segments and who are directly accountable to our chief operating decision maker (“CODM”), the Chief Executive Officer of Everest Group, Ltd., who is ultimately responsible for reviewing the business to assess performance, make operating decisions and allocate resources. We report the results of our operations consistent with the manner in which our CODM reviews the business.
Current wording
Our two reportable segments, Reinsurance and Insurance, each have executive leadership who are responsible for the overall performance of their respective segments and who are directly accountable to our chief operating decision maker (“CODM”), the President and Chief Executive Officer of Everest Group, Ltd., who is ultimately responsible for reviewing the business to assess performance, make operating decisions and allocate resources. We report the results of our operations consistent with the manner in which our CODM reviews the business.
Previous wording
Premiums. Gross written premiums increased by 1.4% to $3.2 billion for the three months ended March 31, 2025 from $3.2 billion for the three months ended March 31, 2024, primarily due to property catastrophe excess of loss business and property pro rata business, partially offset by actions taken on our North America casualty business.
Current wording
Premiums. Gross written premiums increased by 1.1% remaining relatively constant at $3.2 billion for the three months ended June 30, 2025 from $3.2 billion for the three months ended June 30, 2024, primarily driven by property pro rata business and property catastrophe excess of loss business, partially offset by a decrease in financial lines business driven by actions taken on our North America casualty business. Gross written premiums increased by 1.2% to $6.5 billion for the six months ended June 30, 2025 from $6.4 billion for the six months ended June 30, 2024, primarily due to property pro rata business and property catastrophe excess of loss business, partially offset by actions taken on our North America reinsurance casualty business.
Previous wording
Premiums earned increased by 6.5% to $2.9 billion for the three months ended March 31, 2025, compared to $2.7 billion for the three months ended March 31, 2024. 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. The growth in premiums earned is primarily driven by increased property pro rata writings that were recorded over the prior quarters which are now being earned.
Current wording
Premiums earned increased by 11.2% to $3.0 billion for the three months ended June 30, 2025, compared to $2.7 billion for the three months ended June 30, 2024. Premiums earned increased by 8.8% to $5.9 billion for the six months ended June 30, 2025, compared to $5.5 billion for the six months ended June 30, 2024. The growth in premiums earned is primarily driven by increased property pro rata business written that was recorded over the prior quarters which are now being earned. 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.
Previous wording
Segment Expenses. Commission and brokerage expense increased by 5.4% to $707 million for the three months ended March 31, 2025, compared to $671 million for the three months ended March 31, 2024. The increase was mainly due to the impact of the increase in premiums earned. Segment other underwriting expenses remained consistent at $71 million for both the three months ended March 31, 2025 and the three months ended March 31, 2024.
Current wording
Segment Expenses. Commission and brokerage expense increased by 12.0% to $753 million for the three months ended June 30, 2025, compared to $672 million for the three months ended June 30, 2024. Commission and brokerage expense increased by 8.7% to $1.5 billion for the six months ended June 30, 2025, compared to $1.3 billion for the six months ended June 30, 2024. The increases were mainly due to the impact of the increase in premiums earned and changes in the mix of business.
Previous wording
Premiums earned increased by 4.9% to $913 million for the three months ended March 31, 2025, compared to $871 million for the three months ended March 31, 2024. 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.
Current wording
Premiums earned increased by 1.1% to $920 million for the three months ended June 30, 2025, compared to $910 million for the three months ended June 30, 2024. Premiums earned increased by 2.9% to $1.8 billion for the six months ended June 30, 2025, compared to $1.8 billion for the six months ended June 30, 2024. The change in premiums earned relative to net written premiums is the result of timing as the higher base premium written in 2024 is being earned through the 2025 period; premiums are earned ratably over the coverage period, whereas written premiums are generally recorded at the initiation of the coverage period.
Previous wording
Incurred losses and LAE increased by 16.3% to $640 million for the three months ended March 31, 2025, compared to $551 million for the three months ended March 31, 2024. The increase was mainly due to an increase of $84 million in current year attritional losses and an increase of $5 million in current year catastrophe losses. The increase in current year attritional losses was primarily due to higher loss selections in casualty lines, partially offset by changes in the mix of business. The $10 million of current year catastrophe losses for the three months ended March 31, 2025 related to the 2025 Southern California wildfires ($8 million) and the Myanmar earthquake ($2 million). The $5 million of current year catastrophe losses for the three months ended March 31, 2024 related to the 2024 Baltimore bridge collapse.
Current wording
Incurred losses and LAE increased by 9.3% to $643 million for the three months ended June 30, 2025, compared to $588 million for the three months ended June 30, 2024. The increase was mainly due to an increase of $60 million in current year attritional losses, partially offset by a decrease of $5 million in current year catastrophe losses. The increase in current year attritional losses was primarily due to strengthening of loss selections in casualty lines, partially offset by changes in the mix of business. The $10 million of current year catastrophe losses for the three months ended June 30, 2025 primarily related to development on the first quarter 2025 Myanmar earthquake ($7 million) and the 2025 U.S. Midwest convective storms ($5 million). The $15 million of current year catastrophe losses for the three months ended June 30, 2024 related to the 2024 second quarter U.S. convective storms ($12 million), the 2024 Taiwan earthquake ($2 million) and the 2024 Germany floods ($1 million).
Previous wording
Segment Expenses. Commission and brokerage increased by 8.3% to $113 million for the three months ended March 31, 2025, compared to $104 million for the three months ended March 31, 2024. Segment other underwriting expenses increased to $165 million for the three months ended March 31, 2025, compared to $145 million for the three months ended March 31, 2024. The increases were mainly due to the impact of the increase in premiums earned and increased expenses related to the expansion of the international insurance platform.
Current wording
Segment other underwriting expenses increased to $174 million for the three months ended June 30, 2025, compared to $154 million for the three months ended June 30, 2024. Segment other underwriting expenses increased to $339 million for the six months ended June 30, 2025, compared to $300 million for the six months ended June 30, 2024. These increases were mainly due to the impact of the increase in premiums earned and increased expenses related to the continued investment of the international insurance platform.
Previous wording
Investments. Total investments were $41.1 billion at March 31, 2025, an increase of $1.1 billion compared to $40.0 billion at December 31, 2024. The rise in investments was primarily related to an increase in fixed maturities - available for sale due to an overall net purchase of $2.4 billion, partially offset by a decrease in short-term investment due to an overall net sale of $1.8 billion during the three months ended March 31, 2025.
Current wording
Investments. Total investments were $42.4 billion at June 30, 2025, an increase of $2.4 billion compared to $40.0 billion at December 31, 2024. The rise in investments was primarily related to an increase in fixed maturities - available for sale due to an overall net purchase of $3.4 billion, partially offset by a decrease in short-term investment due to an overall net sale of $2.3 billion during the six months ended June 30, 2025.
Previous wording
Reinsurance recoverables for both paid and unpaid losses totaled $3.6 billion and $3.1 billion at March 31, 2025 and December 31, 2024, respectively. At March 31, 2025, $482 million, or 13.6%, was receivable from Mt. Logan Re collateralized segregated accounts; $352 million, or 9.9%, was receivable from Munich Reinsurance America, Inc. and $247 million, or 7.0% was receivable from Endurance Assurance Corporation. No other retrocessionaire accounted for more than 5% of our recoverables.
Current wording
Reinsurance recoverables for both paid and unpaid losses totaled $3.5 billion and $3.1 billion at June 30, 2025 and December 31, 2024, respectively. At June 30, 2025, $411 million, or 11.7%, was receivable from Mt. Logan Re collateralized segregated accounts; $341 million, or 9.7%, was receivable from Munich Reinsurance America, Inc. and $253 million, or 7.2% was receivable from Endurance Assurance Corporation. No other retrocessionaire accounted for more than 5% of our recoverables.
Previous wording
Loss and LAE Reserves. Gross loss and LAE reserves totaled $31.5 billion and $29.9 billion at March 31, 2025 and December 31, 2024, respectively.
Current wording
Loss and LAE Reserves. Gross loss and LAE reserves totaled $32.5 billion and $29.9 billion at June 30, 2025 and December 31, 2024, respectively.
Previous wording
(1)Reserves for A&E exposures are included within Other. At March 31, 2025, A&E Case and IBNR reserves totaled $155 million and $96 million, respectively.
Current wording
(1)Reserves for A&E exposures are included within Other. At June 30, 2025, A&E Case and IBNR reserves totaled $149 million and $92 million, respectively.
Previous wording
With respect to asbestos only, at March 31, 2025, we had net asbestos loss reserves of $206 million, or 88.7%, of total net A&E reserves, all of which was for assumed business. At March 31, 2025, we had gross asbestos loss reserves of $224 million, or 89.4% of total gross A&E reserves, all of which was for assumed business.
Current wording
With respect to asbestos only, at June 30, 2025, we had net asbestos loss reserves of $198 million, or 88.8%, of total net A&E reserves, all of which was for assumed business. At June 30, 2025, we had gross asbestos loss reserves of $216 million, or 89.6% of total gross A&E reserves, all of which was for assumed business.
Previous wording
Industry analysts use the “survival ratio” to compare the A&E reserves among companies with such liabilities. The survival ratio is typically calculated by dividing a company’s current net reserves by the three-year average of annual paid losses. Hence, the survival ratio equals the number of years that it would take to exhaust the current reserves if future loss payments were to continue at historical levels. Using this measurement, our net three-year asbestos survival ratio was 7.1 years at March 31, 2025. These metrics can be skewed by individual large settlements occurring in the prior three years and therefore may not be indicative of the timing of future payments.
Current wording
Industry analysts use the “survival ratio” to compare the A&E reserves among companies with such liabilities. The survival ratio is typically calculated by dividing a company’s current net reserves by the three-year average of annual paid losses. Hence, the survival ratio equals the number of years that it would take to exhaust the current reserves if future loss payments were to continue at historical levels. Using this measurement, our net three-year asbestos survival ratio was 6.7 years at June 30, 2025. These metrics can be skewed by individual large settlements occurring in the prior three years and therefore may not be indicative of the timing of future payments.
Previous wording
Capital. Shareholders’ equity at March 31, 2025 and December 31, 2024 was $14.1 billion and $13.9 billion, respectively. Management’s objective in managing capital is to ensure that the Company’s overall capital level, as well as the capital levels of its operating subsidiaries, exceed the amounts required by regulators, the amount needed to support our current financial strength ratings from rating agencies and our own economic capital models. The Company’s capital has historically exceeded these benchmark levels.
Current wording
Capital. Shareholders’ equity at June 30, 2025 and December 31, 2024 was $15.0 billion and $13.9 billion, respectively. Management’s objective in managing capital is to ensure that the Company’s overall capital level, as well as the capital levels of its operating subsidiaries, exceed the amounts required by regulators, the amount needed to support our current financial strength ratings from rating agencies and our own economic capital models. The Company’s capital has historically exceeded these benchmark levels.
Previous wording
(1) Regulatory targeted capital represents the target capital level from the applicable year's Bermuda Solvency Capital Requirement calculation.
Current wording
(1)Regulatory targeted capital represents the target capital level from the applicable year's Bermuda Solvency Capital Requirement calculation.
Previous wording
For the three months ended March 31, 2025, we repurchased 574,000 of our common shares at a cost of $200 million in the open market and paid $85 million in common share dividends to enhance long-term expected returns to our shareholders. During fiscal year 2024, we repurchased 536,469 of our common shares at a cost of $200 million in the open market and paid $334 million in common share dividends. From time to time, we may enter into a Rule 10b5-1 repurchase plan to facilitate the repurchase of shares, repurchase shares in open market transactions, privately negotiated transactions or otherwise. On November 7, 2024, our existing Board authorization to purchase up to 32 million of our shares was increased by 10 million shares to authorize the purchase of up to 42 million shares. As of March 31, 2025, we had repurchased 31.9 million shares under this authorization. During the first quarter of 2025, the Company’s Board of Directors declared a quarterly common stock dividend of $2.00 per share. The common stock dividend was paid on March 28, 2025 for holders of record as of March 17, 2025.
Current wording
For the six months ended June 30, 2025, we repurchased 1,154,883 of our common shares at a cost of $400 million in the open market and paid $169 million in common share dividends to enhance long-term expected returns to our shareholders. During fiscal year 2024, we repurchased 536,469 of our common shares at a cost of $200 million in the open market and paid $334 million in common share dividends. From time to time, we may enter into a Rule 10b5-1 repurchase plan to facilitate the repurchase of shares, repurchase shares in open market transactions, privately negotiated transactions or otherwise. On November 7, 2024, our existing Board authorization to purchase up to 32 million of our shares was increased by 10 million shares to authorize the purchase of up to 42 million shares. As of June 30, 2025, we had repurchased 32.5 million shares under this authorization. During the second quarter of 2025, the Company’s Board of Directors declared a quarterly common stock dividend of $2.00 per share. The common stock dividend was paid on June 13, 2025 for holders of record as of May 28, 2025.
Previous wording
Liquidity. Our liquidity requirements are generally met from positive cash flow from operations. Positive cash flow results from reinsurance and insurance premiums being collected prior to disbursements for claims, with disbursements generally taking place over an extended period after the collection of premiums, sometimes a period of many years. Collected premiums are generally invested, prior to their use in such disbursements, and investment income provides additional funding for loss payments. Our net cash flows from operating activities were $928 million and $1.1 billion for the three months ended March 31, 2025 and 2024, respectively. Additionally, these cash flows reflected net catastrophe loss payments of $317 million and $229 million for the three months ended March 31, 2025 and 2024, respectively, and net tax payments of $1 million and $16 million for the three months ended March 31, 2025 and 2024, respectively.
Current wording
Liquidity. Our liquidity requirements are generally met from positive cash flow from operations. Positive cash flow results from reinsurance and insurance premiums being collected prior to disbursements for claims, with disbursements generally taking place over an extended period after the collection of premiums, sometimes a period of many years. Collected premiums are generally invested, prior to their use in such disbursements, and investment income provides additional funding for loss payments. Our net cash flows from operating activities were $2.0 billion and $2.4 billion for the six months ended June 30, 2025 and 2024, respectively. Additionally, these cash flows reflected net catastrophe loss payments of $481 million and $365 million for the six months ended June 30, 2025 and 2024, respectively, and net tax payments of $16 million and $203 million for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
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 March 31, 2025 and December 31, 2024, we held cash and short-term investments of $4.5 billion and $6.3 billion, respectively. Our short-term investments are generally readily marketable and can be converted to cash. In addition to these cash and short-term investments, at March 31, 2025, we had $1.1 billion of fixed maturity securities - available for sale maturing within one year or less, $10.6 billion maturing within one to five years and $6.7 billion maturing after five years. We believe that these fixed maturity securities, in conjunction with the short-term investments and positive cash flow from operations, provide ample sources of liquidity for the expected payment of losses and LAE in the near future. We do not anticipate selling a significant amount of securities to pay losses and LAE. At March 31, 2025, we had $645 million of net pre-tax unrealized depreciation related to fixed maturity - available for sale securities, comprised of $921 million of pre-tax unrealized depreciation and $277 million of pre-tax unrealized appreciation.
Current wording
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 June 30, 2025 and December 31, 2024, we held cash and short-term investments of $4.4 billion and $6.3 billion, respectively. Our short-term investments are generally readily marketable and can be converted to cash. In addition to these cash and short-term investments, at June 30, 2025, we had $1.2 billion of fixed maturity securities - available for sale maturing within one year or less, $11.1 billion maturing within one to five years and $7.7 billion maturing after five years. We believe that these fixed maturity securities, in conjunction with the short-term investments and positive cash flow from operations, provide ample sources of liquidity for the expected payment of losses and LAE in the near future. We do not anticipate selling a significant amount of securities to pay losses and LAE. At June 30, 2025, we had $287 million of net pre-tax unrealized depreciation related to fixed maturity - available for sale securities, comprised of $870 million of pre-tax unrealized depreciation and $583 million of pre-tax unrealized appreciation.
Previous wording
In addition to our cash flows from operations and liquid investments, Everest Re is a member of the Federal Home Loan Bank of New York (“FHLBNY”), which allows Everest Re to borrow up to 10% of its statutory admitted assets. As of March 31, 2025, Everest Re had statutory admitted assets of approximately $31.4 billion which provides borrowing capacity of up to approximately $3.1 billion. As of March 31, 2025, 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 I, Item I of this Form 10-Q for further details.
Current wording
In addition to our cash flows from operations and liquid investments, Everest Re is a member of the Federal Home Loan Bank of New York (“FHLBNY”), which allows Everest Re to borrow up to 10% of its statutory admitted assets. As of June 30, 2025, Everest Re had statutory admitted assets of approximately $32.4 billion which provides borrowing capacity of up to approximately $3.2 billion. As of June 30, 2025, 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 I, Item I of this Form 10-Q for further details.
Previous wording
Interest Rate Risk. Our $42.6 billion cash and invested assets portfolio at March 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. The overall economic impact of the foreign exchange risks on the investment portfolio is partially mitigated by changes in the dollar value of foreign currency denominated liabilities and their associated income statement impact.
Current wording
Interest Rate Risk. Our $44.3 billion cash and invested assets portfolio at June 30, 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. The overall economic impact of the foreign exchange risks on the investment portfolio is partially mitigated by changes in the dollar value of foreign currency denominated liabilities and their associated income statement impact.
Previous wording
Interest rate risk is the potential change in value of the fixed maturity securities portfolio from a change in market interest rates. In a declining interest rate environment, interest rate risk includes prepayment risk on the $7.8 billion of mortgage-backed securities in the $32.5 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.
Current wording
Interest rate risk is the potential change in value of the fixed maturity securities portfolio from a change in market interest rates. In a declining interest rate environment, interest rate risk includes prepayment risk on the $8.1 billion of mortgage-backed securities in the $34.1 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.
Previous wording
The table below displays the potential impact of market value fluctuations and after-tax unrealized appreciation on our fixed maturity portfolio (including $2.9 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. For legal entities with a U.S. dollar functional currency, this modeling was performed on each security individually. To generate appropriate price estimates on mortgage-backed securities, changes in prepayment expectations under different interest rate environments were taken into account. 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 market value change under the various interest rate change scenarios.
Current wording
The table below displays the potential impact of market value fluctuations and after-tax unrealized appreciation on our fixed maturity portfolio (including $2.5 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. For legal entities with a U.S. dollar functional currency, this modeling was performed on each security individually. To generate appropriate price estimates on mortgage-backed securities, changes in prepayment expectations under different interest rate environments were taken into account. 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 market value change under the various interest rate change scenarios.
Showing the first 40 of 42 pairs. Open the source sections for the rest.
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Current report — wording carried from elsewhere
Total net gains (losses) on investments during the six months ended June 30, 2025 primarily relate to $13 million of net losses due to the disposition of investments and an increase to the allowance for credit losses of $2 million, partially offset by $3 million of gains from fair value adjustments on equity securities.