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Item 9A. Controls and Procedures

2024-02-28 compared with 2023-02-24 · 1961 added, 3278 removed, 722 unchanged (88% of the section changed)

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1 unchanged sentence

Disclosure Controls and Procedures.

including our Chief Executive Officer

and Chief Financial Officer,

has evaluated the effectiveness

of our disclosure

and procedures

13a-15(e) under

that evaluation,

our disclosure

and procedures

were effective as of the

end of the period covered by this annual report.

Management’s Report

on Internal Control Over Financial Reporting.

accordance with generally accepted

accounting principles.

misstatements.

Also, projections

of any evaluation

of effectiveness

to future periods

are subject to

the risk that

become inadequate

in conditions,

of compliance

policies or procedures may deteriorate.

Management has

effectiveness

internal control

over financial

In making this assessment, we used the

criteria set forth by the Committee

of Sponsoring Organizations

Commission (COSO)

Internal Control

Framework (2013)

our assessment

over financial

those criteria.

The effectiveness

internal control

over financial

PricewaterhouseCoopers

report, which appears herein.

Changes in Internal Control over

Financial Reporting.

management, including

changes occurred during

fiscal quarter covered

by this annual

report that have

materially affected,

are reasonably

materially affect,

our internal control

over financial reporting.

Based on that

there has been no such change during the fourth

As required by Rule 13a-15(b) of the Exchange Act, our management, including our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act).

Based on that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of the end of the period covered by this annual report.

Management’s Report on Internal Control Over Financial Reporting.

Our management is responsible for establishing and maintaining adequate internal control over financial reporting.

Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of our financial statements for external purposes in accordance with generally accepted accounting principles.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management has assessed the effectiveness of our internal control over financial reporting as of December 31, 2023.

In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control - Integrated Framework (2013) .

Based on our assessment we concluded that, as of December 31, 2023, our internal control over financial reporting is effective based on those criteria.

The effectiveness of the Company’s internal control over financial reporting as of December 31, 2023, has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report, which appears herein.

Changes in Internal Control over Financial Reporting.

As required by Rule 13a-15(d) of the Exchange Act, our management, including our Chief Executive Officer and Chief Financial Officer, has evaluated our internal control over financial reporting to determine whether any changes occurred during the fourth fiscal quarter covered by this annual report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Based on that evaluation, we have determined that there has been no such change during the fourth quarter.

OTHER INFORMATION

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT

PREVENT INSPECTIONS

DIRECTORS, EXECUTIVE OFFICERS

AND CORPORATE GOVERNANCE

Compliance” in

of Shareholders,

Statement”), which sections are incorporated

herein by reference.

During the fiscal quarter ended December 31, 2023, none of our directors or officers adopted , modified or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as those terms are defined in Regulation S-K, Item 408.

Additionally, as part of Everest’s commitment to ethical standards of business and compliance with applicable laws, rules and regulations, we have an Insider Trading Policy governing the purchase, sale, and/or other dispositions of our securities by our directors, officers, employees and third-party contractors that we believe is reasonably designed to

promote compliance with insider trading laws, rules and regulations, and the exchange listing standards applicable to us.

A copy of our Insider Trading Policy is included in the Ethics and Guidelines and Index to Compliance Policies and Procedures filed as Exhibit 14.1 to this Annual Report on Form 10-K.

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Reference is made to the sections captioned “Information Concerning Director Nominees”, “Information Concerning Executive Officers”, “Audit Committee”, “Nominating and Governance Committee”, “Code of Ethics for CEO and Senior Financial Officers” and “Section 16(a) Beneficial Ownership Reporting Compliance” in our proxy statement for the 2024 Annual General Meeting of Shareholders, which will be filed with the Commission within 120 days of the close of our fiscal year ended December 31, 2023 (the “Proxy Statement”), which sections are incorporated herein by reference.

EXECUTIVE COMPENSATION

Compensation”

“Compensation

Officers” in the Proxy Statement,

which are incorporated herein

by reference.

SHAREHOLDER MATTERS

Compensation Plans” in the Proxy Statement,

which are incorporated herein

by reference.

CERTAIN RELATIONSHIPS

AND RELATED TRANSACTIONS,

AND DIRECTOR INDEPENDENCE

the section captioned

“Certain Transactions

with Directors”

Statement, which

is incorporated herein by

PRINCIPAL ACCOUNTANT

FEES AND SERVICES

Reference is made to the section

captioned “Audit

Committee Report” in the Proxy Statement,

incorporated herein by

EXHIBITS AND FINANCIAL STATEMENT

Reference is made to the sections captioned “Compensation Committee Report”, “Directors’ Compensation”, “Compensation of Executive Officers” and “Compensation Committee Interlocks and Insider Participation” in the Proxy Statement, which are incorporated herein by reference.

On November 1, 2023, the Company’s Board adopted an updated Clawback Policy (the “Clawback Policy”) in order to comply with Section 10D of the Exchange Act, Rule 10D-1 of the Exchange Act and the listing standards adopted by the New York Stock Exchange.

The Clawback Policy provides for the mandatory recovery of erroneously awarded incentive-based compensation from current and former executive officers (as defined in the Clawback Policy) of the Company (“Section 16 Officers”) in the event that the Company is required to prepare an accounting restatement.

The foregoing description of the Clawback Policy is a summary only and is qualified in its entirety by reference to the full text of the Clawback Policy and the form of Acknowledgment, copies of which are filed as Exhibit 97 to this Annual Report on Form 10-K.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS

Reference is made to the applicable sections in the Proxy Statement, which are incorporated herein by reference.

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Reference is made to the applicable sections in the Proxy Statement, which are incorporated herein by reference.

PRINCIPAL ACCOUNTANT FEES AND SERVICES

Reference is made to the section captioned “Audit Committee Report” in the Proxy Statement, which is incorporated herein by reference.

EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

Financial Statements and Schedules.

The financial

and schedules

the accompanying

Financial Statements

and Schedules

on page F-1 are filed as part of this report.

the accompanying

Exhibits on page

filed as part

of this report

the certifications

in Exhibit 32

are being furnished

filed with the

SEC, as permitted

applicable SEC rules.

the Securities

duly caused this report

to be signed on its

behalf by the undersigned,

thereunto duly authorized

on February 24,

EVEREST RE GROUP,

(President and Chief Executive

Securities Exchange

following persons on behalf of the registrant

and in the capacities and on the dates indicated.

President and Chief Executive

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.

The exhibits listed on the accompanying Index to Exhibits on page E-1 are filed as part of this report except that the certifications in Exhibit 32 are being furnished to the SEC, rather than filed with the SEC, as permitted under applicable SEC rules.

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on February 28, 2024.

EVEREST GROUP, LTD.

(President and Chief Executive Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature Title Date

ANDRADE President and Chief Executive Officer

(Principal Executive Officer)

February 28, 2024

/S/ MARK KOCIANCIC

Executive Vice President and Chief

February 24, 2023

/S/ MARK KOCIANCIC Executive Vice President and Chief Financial Officer February 28, 2024

Mark Kociancic

/S/ ROBERT J.

Senior Vice President and Chief

February 24, 2023

Accounting Officer

FREILING Senior Vice President and Chief Accounting Officer February 28, 2024

/S/ JOSEPH V.

February 24, 2023

TARANTO Chairman February 28, 2024

AMORE Director February 28, 2024

/S/ WILLIAM F.

February 24, 2023

/S/ MERYL HARTZBAND

February 24, 2023

Director February 28, 2024

GRAF Director February 28, 2024

/S/ MERYL HARTZBAND Director February 28, 2024

Meryl Hartzband

/S/ GERALDINE LOSQUADRO

February 24, 2023

/S/ GERALDINE LOSQUADRO Director February 28, 2024

Geraldine Losquadro

/S/ HAZEL McNEILAGE

February 24, 2023

/S/ HAZEL McNEILAGE Director February 28, 2024

Hazel McNeilage

February 24, 2023

SINGER Director February 28, 2024

INDEX TO EXHIBITS

Agreement and Plan of Merger among Everest Reinsurance Holdings, Inc., Everest Re Group,

and Everest Re Merger Corporation, incorporated herein by reference to Exhibit 2.1 to the

Registration Statement on Form S-4 (No.

Memorandum of Association of Everest Re Group, Ltd., incorporated herein by reference to

Exhibit 3.1 to the Registration Statement on Form S-4 (No.

Bye-Laws of Everest Re Group, Ltd., incorporated herein by reference to exhibit 3.2 to the

Everest Re Group, Ltd., Quarterly Report for Form 10-Q for the quarter ended June 30, 2011 (the

“second quarter 2011 10-Q”)

Specimen Everest Re Group, Ltd.

common share certificate, incorporated herein by reference to

Exhibit 4.1 of the Registration Statement on Form S-4 (No.

2.1 Agreement and Plan of Merger among Everest Reinsurance Holdings, Inc., Everest Group, Ltd.

and Everest Re Merger Corporation, incorporated herein by reference to Exhibit 2.1 to the Registration Statement on Form S-4 (No.

3.1 Memorandum of Association of Everest Group, Ltd ., incorporated herein by reference to Exhibit 3.1 to the Registration Statement on Form S-4 (No.

3.2 Bye-Laws of Everest Group, Ltd ., incorporated herein by reference to exhibit 3.2 to the Everest Group, Ltd ., Quarterly Report for Form 10-Q for the quarter ended June 30, 2011 (the “second quarter 2011 10-Q”)

4.1 Specimen Everest Group, Ltd .

common share certificate, incorporated herein by reference to Exhibit 4.1 of the Registration Statement on Form S-4 (No.

4.2 Indenture, dated March 14, 2000, between Everest Reinsurance Holdings, Inc.

and The Chase

Manhattan Bank (now known as JPMorgan Chase Bank), as Trustee, incorporated herein by

reference to Exhibit 4.1 to Everest Reinsurance Holdings, Inc.

and The Chase Manhattan Bank (now known as JPMorgan Chase Bank), as Trustee, incorporated herein by reference to Exhibit 4.1 to Everest Reinsurance Holdings, Inc.

Form 8-K filed on March 15, 2000

Fourth Supplemental Indenture relating to Holdings $400.0 million 4.868% Senior Notes due

June 1, 2044, dated June 5, 2014, between Holdings and The Bank of New York Mellon, as

Trustee, incorporated herein by reference to Exhibit 4.1 to Everest Reinsurance Holdings, Inc.

4.3 Fourth Supplemental Indenture relating to Holdings $400.0 million 4.868% Senior Notes due June 1, 2044, dated June 5, 2014, between Holdings and The Bank of New York Mellon, as Trustee, incorporated herein by reference to Exhibit 4.1 to Everest Reinsurance Holdings, Inc.

Form 8-K filed on June 5, 2014

Fifth Supplemental Indenture relating to Holdings $1.0 billion 3.5% Senior Notes due October

15, 2050, dated October 7, 2020, between Holdings and The Bank of New York Mellon, as

Trustee, incorporated herein by reference to Exhibit 4.1 to Everest Reinsurance Holdings, Inc.

4.4 Fifth Supplemental Indenture relating to Holdings $1.0 billion 3.5% Senior Notes due October 15, 2050, dated October 7, 2020, between Holdings and The Bank of New York Mellon, as Trustee, incorporated herein by reference to Exhibit 4.1 to Everest Reinsurance Holdings, Inc.

Form 8-K filed on October 7, 2020

Sixth Supplemental Indenture relating to Holdings $1.0 billion 3.125% Senior Notes due October

15, 2052, dated October 4, 2021, between Holdings and The Bank of New York Mellon, as

Trustee, incorporated herein by reference to Exhibit 4.1 to Everest Reinsurance Holdings, Inc.

4.5 Sixth Supplemental Indenture relating to Holdings $1.0 billion 3.125% Senior Notes due October 15, 2052, dated October 4, 2021, between Holdings and The Bank of New York Mellon, as Trustee, incorporated herein by reference to Exhibit 4.1 to Everest Reinsurance Holdings, Inc.

Form 8-K filed on October 4, 2021

Everest Re Group, Ltd.

Annual Incentive Plan effective January 1, 1999, incorporated herein by

reference to Exhibit 10.1 to Everest Reinsurance Holdings, Inc.

Annual Report on Form 10-K for

the year ended December 31, 1998 (the “1998 10-K”)

Everest Re Group, Ltd.

2003 Non-Employee Director Equity Compensation Plan, incorporated

herein by reference to Exhibit 4.1 to the Registration Statement on Form S-8 (No.

Form of Non-Qualified Stock Option Award Agreement under the Everest Re Group, Ltd.

Non-Employee Director Equity Compensation Plan, incorporated herein by reference to Exhibit

10.47 to Everest Re Group, Ltd., Report on Form 10-K for the year ended December 31, 2004

Amendment of Everest Re Group, Ltd.

2003 Non-Employee Director Equity Compensation Plan

adopted by shareholders at the annual general meeting on May 25, 2005, incorporated herein

by reference to Appendix B to the 2005 Proxy Statement filed on April 14, 2005

Form of Restricted Stock Award Agreement under the Everest Re Group, Ltd.

Employee Director Equity Compensation Plan, incorporated by reference to Exhibit 10.1 to

Everest Re Group, Ltd.

Everest Group, Ltd.

Annual Incentive Plan effective January 1, 1999, incorporated herein by reference to Exhibit 10.1 to Everest Reinsurance Holdings, Inc.

Annual Report on Form 10-K for the year ended December 31, 1998 (the “1998 10-K”)

Everest Group, Ltd .

2003 Non-Employee Director Equity Compensation Plan, incorporated herein by reference to Exhibit 4.1 to the Registration Statement on Form S-8 (No.

Form of Non-Qualified Stock Option Award Agreement under the Everest Group, Ltd .

2003 Non-Employee Director Equity Compensation Plan, incorporated herein by reference to Exhibit 10.47 to Everest Group, Ltd ., Report on Form 10-K for the year ended December 31, 2004

*10.4 Amendment of Everest Group, Ltd .

2003 Non-Employee Director Equity Compensation Plan adopted by shareholders at the annual general meeting on May 25, 2005, incorporated herein by reference to Appendix B to the 2005 Proxy Statement filed on April 14, 2005

*10.5 Form of Restricted Stock Award Agreement under the Everest Group, Ltd .

2003 Non-Employee Director Equity Compensation Plan, incorporated by reference to Exhibit 10.1 to Everest Group, Ltd .

Form 8-K filed on September 22, 2005

10.6 Completion of Tender Offer relating to Everest Reinsurance Holdings, Inc.

6.60% Fixed to

Floating Rate Long Term Subordinated Notes (LoTSSM) dated March 19, 2009, incorporated

herein by reference to Exhibit 99.1 to Everest Re Group, Ltd.

6.60% Fixed to Floating Rate Long Term Subordinated Notes (LoTSSM) dated March 19, 2009, incorporated herein by reference to Exhibit 99.1 to Everest Group, Ltd .

Form 8-K filed on March 31, 2009

Everest Re Group, Ltd.

2009 Stock Option and Restricted Stock Plan for Non-Employee Directors

incorporated herein by reference to Exhibit 10.1 to Everest Re Group, Ltd.

second quarter 2009

Everest Re Group, Ltd.

2010 Stock Incentive Plan for employees is incorporated herein by

reference to exhibit 10.2 to Everest Re Group, Ltd.

*10.7 Everest Group, Ltd .

2009 Stock Option and Restricted Stock Plan for Non-Employee Directors incorporated herein by reference to Exhibit 10.1 to Everest Group, Ltd .

second quarter 2009 10-Q

*10.8 Everest Group, Ltd .

2010 Stock Incentive Plan for employees is incorporated herein by reference to exhibit 10.2 to Everest Group, Ltd .

Form S-8 filed on September 30, 2010

Amendment of Executive Performance Annual Incentive Plan adopted by shareholders at the

annual general meeting on May 18, 2011, incorporated herein by reference to Appendix B to

the 2011 Proxy Statement filed on April 15, 2011

Amendment of Everest Re Group, Ltd.

2010 Stock Incentive Plan adopted by shareholders at the

annual general meeting on May 13, 2015, incorporated herein by reference to Appendix A to

the 2015 Proxy Statement filed on April 10, 2015

Amendment of Everest Re Group, Ltd.

2003 Non-Employee Director Equity Compensation Plan

adopted by shareholders at the annual general meeting on May 13, 2015, incorporated herein

by reference to Appendix B to the 2015 Proxy Statement filed on April 10, 2015

Employment agreement between Everest Global Services, Inc., Everest Reinsurance Holdings

*10.9 Amendment of Executive Performance Annual Incentive Plan adopted by shareholders at the annual general meeting on May 18, 2011, incorporated herein by reference to Appendix B to the 2011 Proxy Statement filed on April 15, 2011

*10.10 Amendment of Everest Group, Ltd .

2010 Stock Incentive Plan adopted by shareholders at the annual general meeting on May 13, 2015, incorporated herein by reference to Appendix A to the 2015 Proxy Statement filed on April 10, 2015

*10.11 Amendment of Everest Group , Ltd.

2003 Non-Employee Director Equity Compensation Plan adopted by shareholders at the annual general meeting on May 13, 2015, incorporated herein by reference to Appendix B to the 2015 Proxy Statement filed on April 10, 2015

*10.12 Employment agreement between Everest Global Services, Inc., Everest Reinsurance Holdings Inc.

and Dominic J.

Addesso, dated December 4, 2015, incorporated herein by reference to

Exhibit 10.1 to Everest Re Group, Ltd.

Addesso, dated December 4, 2015, incorporated herein by reference to Exhibit 10.1 to Everest Group , Ltd.

Form 8-K filed on December 8, 2015

Standby Letter of Credit, dated November 9, 2015, between Everest International Reinsurance,

10.13 Standby Letter of Credit, dated November 9, 2015, between Everest International Reinsurance, Ltd.

and Lloyds Bank, Plc.

providing £175.0 million four year credit facility, incorporated herein

by reference to Exhibit 10.23 to Everest Re Group, Ltd.

Annual Report on Form 10-K- for the year

ended December 31, 2015 filed on February 29, 2016

providing £175.0 million four year credit facility, incorporated herein by reference to Exhibit 10.23 to Everest Group , Ltd.

Annual Report on Form 10-K- for the year ended December 31, 2015 filed on February 29, 2016

*10.14 Amendment of employment agreement between Everest Global Services, Inc.

Mukherjee, dated February 12, 2016, incorporated herein by reference to Exhibit 10.1 to

Everest Re Group, Ltd.

and Sanjoy Mukherjee, dated February 12, 2016, incorporated herein by reference to Exhibit 10.1 to Everest Group , Ltd.

Form 8-K filed on February 17, 2016

*10.15 Employment agreement between Everest Global Services, Inc.

and Craig Howie, dated April 7,

2016, incorporated herein by reference to Exhibit 10.1 to Everest Re Group, Ltd.

Form 8-K filed

on April 8, 2016

Credit Agreement, dated May 26, 2016, between Everest Re Group, Ltd., Everest Reinsurance

(Bermuda), Ltd.

and Everest International Reinsurance, Ltd., certain lenders party thereto and

Wells Fargo Bank, N.A.

as administrative agent, providing for an $800.0 million four year senior

credit facility, incorporated herein by reference to Exhibit 10.31 to Everest Re Group, Ltd.

10-Q filed on August 9, 2016.

This new agreement replaces the June 22, 2012 four year, $800.0

million senior credit facility

Chairmanship agreement between Everest Re Group, Ltd.

and Craig Howie, dated April 7, 2016, incorporated herein by reference to Exhibit 10.1 to Everest Group , Ltd.

Form 8-K filed on April 8, 2016

10.16 Credit Agreement, dated May 26, 2016, between Everest Group , Ltd., Everest Reinsurance (Bermuda), Ltd.

and Everest International Reinsurance, Ltd., certain lenders party thereto and Wells Fargo Bank, N.A.

as administrative agent, providing for an $800.0 million four year senior credit facility, incorporated herein by reference to Exhibit 10.31 to Everest Group , Ltd.

Form 10-Q filed on August 9, 2016.

This new agreement replaces the June 22, 2012 four year, $800.0 million senior credit facility

*10.17 Chairmanship agreement between Everest Group , Ltd.

and Joseph V.

Taranto, dated August

15, 2016 and effective January 1, 2017, incorporated herein by reference to Exhibit 10.1 to

Everest Re Group, Ltd.

Taranto, dated August 15, 2016 and effective January 1, 2017, incorporated herein by reference to Exhibit 10.1 to Everest Group , Ltd.

Form 8-K filed on August 16, 2016

*10.18 Employment agreement between Everest Global Services, Inc., and John P.

Doucette, dated

October 21, 2016, incorporated herein by reference to Exhibit 10.1 to Everest Re Group, Ltd.

Doucette, dated October 21, 2016, incorporated herein by reference to Exhibit 10.1 to Everest Group , Ltd.

Form 8-K filed on October 26, 2016

Employment agreement between Everest Global Services, Inc., and Sanjoy Mukherjee, dated

January 3, 2017, incorporated herein by reference to Exhibit 10.1 to Everest Re Group, Ltd.

8-K filed on January 6, 2017

Amendment of Standby Letter of Credit, dated May 17, 2017, between Everest International

Reinsurance, Ltd.

*10.19 Employment agreement between Everest Global Services, Inc., and Sanjoy Mukherjee, dated January 3, 2017, incorporated herein by reference to Exhibit 10.1 to Everest Group , Ltd.

Form 8-K filed on January 6, 2017

10.20 Amendment of Standby Letter of Credit, dated May 17, 2017, between Everest International Reinsurance, Ltd.

and Lloyds Bank, Plc.

providing £145.0 million four year credit facility, herein

by reference to Exhibit 10.1 to Everest Re Group, Ltd., Form 10-Q filed on August 9, 2017

Employment agreement between Everest Re Group, Ltd., and Jonathan Zaffino dated

September 8, 2017, incorporated herein by reference to Exhibit 10.1 to Everest Re Group, Ltd.

Form 8-K filed on September 12, 2017

Amendment of employment agreement between Everest Global Services, Inc., Everest Re

Group, Ltd., Everest Reinsurance Holdings Inc.

providing £145.0 million four year credit facility, herein by reference to Exhibit 10.1 to Everest Group , Ltd., Form 10-Q filed on August 9, 2017

Amendment of employment agreement between Everest Global Services, Inc., Everest Group , Ltd., Everest Reinsurance Holdings Inc.

and Dominic J.

Addesso, dated November 20,

2017, incorporated herein by reference to Exhibit 10.1 to Everest Re Group, Ltd.

Form 8-K filed

on November 20, 2017

Bye-Law waiver agreement between Everest Re Group, Ltd., and BlackRock, Inc.

December 1, 2017, incorporated herein by reference to exhibit 10.1 to the Everest Re Group,

Ltd., Form 8-K filed on December 4, 2017

Amendment of Standby Letter of Credit, dated December 29, 2017, between Everest

Reinsurance (Bermuda), Ltd.

and Citibank Europe plc providing $250.0 million four year credit

facility, incorporated herein by reference to exhibit 10.26 to the Everest Re Group, Ltd., Form

10-K filed on March 1, 2018

Amendment of Standby Letter of Credit, dated November 9, 2018, between Everest

International Reinsurance, Ltd.

Addesso, dated November 20, 2017, incorporated herein by reference to Exhibit 10.1 to Everest Group , Ltd.

Form 8-K filed on November 20, 2017

10.22 Bye-Law waiver agreement between Everest Group , Ltd., and BlackRock, Inc.

dated December 1, 2017, incorporated herein by reference to exhibit 10.1 to the Everest Group , Ltd., Form 8-K filed on December 4, 2017

10.23 Amendment of Standby Letter of Credit, dated December 29, 2017, between Everest Reinsurance (Bermuda), Ltd.

and Citibank Europe plc providing $250.0 million four year credit facility, incorporated herein by reference to exhibit 10.26 to the Everest Group , Ltd., Form 10-K filed on March 1, 2018

10.24 Amendment of Standby Letter of Credit, dated November 9, 2018, between Everest International Reinsurance, Ltd.

and Lloyds Bank, Plc.

providing £30.0 million four year credit

facility, incorporated herein by reference to exhibit 10.33 to the Everest Re Group, Ltd., Form

10-K filed on March 1, 2019

Amendment of Committed Facility Letter, dated December 10, 2018, between Everest

Reinsurance (Bermuda), Ltd.

and Citibank Europe plc providing $200.0 million annually,

incorporated herein by reference to exhibit 10.34 to the Everest Re Group, Ltd., Form 10-K filed

on March 1, 2019

Employment agreement between Everest Re Group, Ltd.

and Juan Andrade dated August 1,

2019, incorporated herein by reference to Exhibit 10.1 to Everest Re Group Ltd.

Form 8-K filed

on August 8, 2019.

Amendment of Standby Letter of Credit, dated November 7, 2019, between Everest

International Reinsurance, Ltd.

providing £30.0 million four year credit facility, incorporated herein by reference to exhibit 10.33 to the Everest Group , Ltd., Form 10-K filed on March 1, 2019

10.25 Amendment of Committed Facility Letter, dated December 10, 2018, between Everest Reinsurance (Bermuda), Ltd.

and Citibank Europe plc providing $200.0 million annually, incorporated herein by reference to exhibit 10.34 to the Everest Group , Ltd., Form 10-K filed on March 1, 2019

Employment agreement between Everest Group , Ltd.

and Juan Andrade dated August 1, 2019, incorporated herein by reference to Exhibit 10.1 to Everest Group Ltd.

Form 8-K filed on August 8, 2019.

10.27 Amendment of Standby Letter of Credit, dated November 7, 2019, between Everest International Reinsurance, Ltd.

and Lloyds Bank, Plc.

providing £47.0 million four year credit

facility, incorporated herein by reference to Exhibit 10.30 to the Everest Re Group, Ltd.

K filed on March 2, 2020

Amendment of Committed Facility Letter, dated December 31, 2019, between Everest

Reinsurance (Bermuda), Ltd.

and Citibank Europe plc providing $200.0 million annually,

incorporated herein by reference to Exhibit 10.31 to the Everest Re Group, Ltd.

Form 10-K filed

on March 2, 2020

Everest Re Group, Ltd.

2020 Stock Incentive Plan for employees is incorporated herein by

reference to Appendix A of the 2021 Proxy Statement filed on April 9, 2021

Amendment of Standby Letter of Credit, dated May 7, 2020 between Everest International

Reinsurance, Ltd.

providing £47.0 million four year credit facility, incorporated herein by reference to Exhibit 10.30 to the Everest Group , Ltd.

Form 10-K filed on March 2, 2020

10.28 Amendment of Committed Facility Letter, dated December 31, 2019, between Everest Reinsurance (Bermuda), Ltd.

and Citibank Europe plc providing $200.0 million annually, incorporated herein by reference to Exhibit 10.31 to the Everest Group , Ltd.

Form 10-K filed on March 2, 2020

10.29 Everest Group , Ltd.

2020 Stock Incentive Plan for employees is incorporated herein by reference to Appendix A of the 2021 Proxy Statement filed on April 9, 2021

10.30 Amendment of Standby Letter of Credit, dated May 7, 2020 between Everest International Reinsurance, Ltd.

and Lloyds Bank, Plc.

providing £52.175 million four year credit facility,

incorporated herein by reference to Exhibit 10.1 to Everest Re Group, Ltd.

Form 10-Q filed on

August 10, 2020

providing £52.175 million four year credit facility, incorporated herein by reference to Exhibit 10.1 to Everest Group , Ltd.

Form 10-Q filed on August 10, 2020

10.31 Employment agreement between Everest Global Services, Inc.

and Mark Kociancic, incorporated

herein by reference to Exhibit 10.1 to Everest Re Group, Ltd.

and Mark Kociancic, incorporated herein by reference to Exhibit 10.1 to Everest Group , Ltd.

Form 8-K filed on October 1, 2020

10.32 Employment agreement between Everest Global Services, Inc.

and James Williamson,

incorporated herein by reference to Exhibit 10.2 to Everest Re Group, Ltd.

Form 8-K filed on

October 1, 2020

Amendment of Committed Facility Letter, dated December 9, 2020 between Everest

Reinsurance (Bermuda), Ltd.

and Citibank Europe plc providing $200.0 million annually,

incorporated herein by reference to Exhibit 10.34 to Everest Re Group, Ltd.

Form 10-K filed on

March 1, 2021

and James Williamson, incorporated herein by reference to Exhibit 10.2 to Everest Group , Ltd.

Form 8-K filed on October 1, 2020

10.33 Amendment of Committed Facility Letter, dated December 9, 2020 between Everest Reinsurance (Bermuda), Ltd.

and Citibank Europe plc providing $200.0 million annually, incorporated herein by reference to Exhibit 10.34 to Everest Group , Ltd.

Form 10-K filed on March 1, 2021

10.34 Credit facility agreement dated February 23, 3021 between Everest Reinsurance (Bermuda), Ltd.

and Wells Fargo Bank, N.A.

providing up to $50.0 million of committed credit facility,

incorporated herein by reference to Exhibit 10.1 to Everest Re Group, Ltd.

Form 10-Q filed on

Amendment of Credit Facility agreement, dated May 5, 2021 between Everest Reinsurance

(Bermuda), Ltd.

providing up to $50.0 million of committed credit facility, incorporated herein by reference to Exhibit 10.1 to Everest Group , Ltd.

Form 10-Q filed on May 10, 2021

10.35 Amendment of Credit Facility agreement, dated May 5, 2021 between Everest Reinsurance (Bermuda), Ltd.

and Wells Fargo Bank, N.A.

providing up to $500.0 million of committed credit

facility, incorporated herein by reference to Exhibit 10.1 to Everest Re Group, Ltd.

filed on August 5, 2021

providing up to $500.0 million of committed credit facility, incorporated herein by reference to Exhibit 10.1 to Everest Group , Ltd.

Form 10-Q filed on August 5, 2021

10.36 Credit Facility agreement, dated August 9, 2021 between Everest Reinsurance (Bermuda), Ltd.

and Citibank Europe plc providing up to $230.0 million committed credit facility and $140.0

million of additional uncommitted credit facility, incorporated herein by reference to Exhibit

10.1 to Everest Re Group, Ltd.

and Citibank Europe plc providing up to $230.0 million committed credit facility and $140.0 million of additional uncommitted credit facility, incorporated herein by reference to Exhibit 10.1 to Everest Group , Ltd.

Form 10-Q filed on November 4, 2021

10.37 Credit Facility agreement, dated August 27, 2021 between Everest Reinsurance (Bermuda), Ltd.

and Bayerische Landesbank providing up to $200.0 million of committed credit facility,

incorporated herein by reference to Exhibit 10.2 to Everest Re Group, Ltd.

Form 10-Q filed on

November 4, 2021

and Bayerische Landesbank providing up to $200.0 million of committed credit facility, incorporated herein by reference to Exhibit 10.2 to Everest Group , Ltd.

Form 10-Q filed on November 4, 2021

10.38 Credit Facility agreement, dated October 8, 2021 between Everest Reinsurance (Bermuda), Ltd.

and Lloyd’s Bank Corporate Markets Plc providing up to $50.0 million of committed credit

facility, incorporated herein by reference to Exhibit 10.39 to Everest Re Group, Ltd.

filed on February 28, 2022

Credit Facility agreement, dated November 3, 2021 between Everest Reinsurance (Bermuda),

and Barclays Bank Plc providing up to $200.0 million of committed credit facility,

incorporated herein by reference to Exhibit 10.40 to Everest Re Group, Ltd.

Form 10-K filed on

February 28, 2022

Credit Facility agreement, dated November 21, 2022 between Everest Reinsurance (Bermuda),

and Nordea Bank ABP, New York Branch providing up to $200.0 million of committed credit

facility and $100.0 million of additional uncommitted credit facility, filed herewith

Amendment of Credit Facility agreement, dated December 30, 2022, between Everest

Reinsurance (Bermuda), Ltd.

and Bayerische Landesbank, New York Branch, providing up to

$150.0 million of committed, unsecured credit facility, filed herewith

and Lloyd’s Bank Corporate Markets Plc providing up to $50.0 million of committed credit facility, incorporated herein by reference to Exhibit 10.39 to Everest Group , Ltd.

Form 10-K filed on February 28, 2022

10.39 Credit Facility agreement, dated November 3, 2021 between Everest Reinsurance (Bermuda), Ltd.

and Barclays Bank Plc providing up to $200.0 million of committed credit facility, incorporated herein by reference to Exhibit 10.40 to Everest Group , Ltd.

Form 10-K filed on February 28, 2022

10.40 Credit Facility agreement, dated November 21, 2022 between Everest Reinsurance (Bermuda), Ltd.

and Nordea Bank ABP, New York Branch providing up to $200.0 million of committed credit facility and $100.0 million of additional uncommitted credit facility, filed herewith

10.41 Amendment of Credit Facility agreement, dated December 30, 2022, between Everest Reinsurance (Bermuda), Ltd.

and Bayerische Landesbank, New York Branch, providing up to $150.0 million of committed, unsecured credit facility, filed herewith

10.42 Employment agreement between Everest Global Services, Inc.

and Joseph V.

Taranto , incorporated herein by reference to Exhibit 10.

1 to Everest Group, Ltd.

Form 10-Q filed on May 4, 2023

10.43 D eparture of Sanjoy Mukherjee, Executive Vice President, General Counsel and Secretary of Everest Group, Ltd.

effective July 3 , 2023 , herein by reference to Exhibit 10.

2 to Everest Group, Ltd.

Form 10-Q filed on May 4, 2023

10.43 Standby Letter of Credit, dated August 18, 2023 between Everest Reinsurance (Bermuda), Ltd.

and Lloyd’s Bank Corporate Markets Plc providing up to $250.0 million of unsecured letters of credit, incorporated herein by reference to Exhibit 10.

3 to Everest Group, Ltd.

Form 10-Q filed on November 1 , 202 3

10.44 Amended and restated standby letter of credit agreement between Everest Reinsurance (Bermuda), Ltd.

and L loyd ’ s Bank Corporate Markets Plc to add Everest Insurance (Ireland), dac (the new account party) as an account party with $15.0 million sublimit for the issuance of letters of credit, filed herewith

10.45 Employment agreement made effective as of June 12, 2023, between Everest Global Services, Inc.

and Ricardo A.

Anzaldua , filed herewith

14.1 Ethics Guidelines and Index to Compliance Policies

21.1 Subsidiaries of the registrant, filed herewith

5 unchanged sentences

Andrade and Mark Kociancic, furnished herewith

XBRL Instance Document

XBRL Taxonomy

Extension Schema

XBRL Taxonomy

Extension Calculation Linkbase

XBRL Taxonomy

Extension Definition Linkbase

XBRL Taxonomy

Extension Label Linkbase

XBRL Taxonomy

Extension Presentation Linkbase

Cover Page Interactive

Data File (embedded within the Inline XBRL document)

97.1 E verest Group, Ltd.

Clawback P olicy

101.INS XBRL Instance Document

101.SCH XBRL Taxonomy Extension Schema

101.CAL XBRL Taxonomy Extension Calculation Linkbase

101.DEF XBRL Taxonomy Extension Definition Linkbase

101.LAB XBRL Taxonomy Extension Label Linkbase

101.PRE XBRL Taxonomy Extension Presentation Linkbase

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

_________________

* Management contract or compensatory plan or arrangement.

EVEREST RE GROUP,

INDEX TO FINANCIAL STATEMENTS

AND SCHEDULES

Report of Independent Registered

Public Accounting Firm

(PCAOB FIRM ID

Consolidated Balance Sheets at December 31, 2022 and 20

Consolidated Statements of Operations and Comprehensive Income (Loss) for the Years Ended

December 31, 2022, 2021 and 2020

Consolidated Statements of Changes in Shareholders’ Equity for the Years Ended

December 31, 2022, 2021 and 2020

Consolidated Statements of Cash Flows for the Years Ended

December 31, 2022, 2021 and 2020

EVEREST GROUP, LTD.

INDEX TO FINANCIAL STATEMENTS AND SCHEDULES

Report of Independent Registered Public Accounting Firm (PCAOB FIRM ID 238 )

Consolidated Balance Sheets a t December 31, 2023 and 2022

Consolidated Statements of Operations and Comprehensive Income (Loss) for the Years Ended December 31, 2023 , 2022 and 2021

Consolidated Statements of Changes in Shareholders’ Equity for the Years Ended December 31, 2023 , 2022 and 2021

Consolidated Statements of Cash Flows for the Years Ended December 31, 2023 , 2022 and 2021

Notes to Consolidated Financial Statements

Summary of Investments Other Than Investments in Related Parties at December 31, 20

Condensed Financial Information of Registrant:

I Summary of Investments Other Than Investments in Related Parties at December 31, 2023

II Condensed Financial Information of Registrant:

Balance Sheets as of December 31, 2023 and 2022

2 unchanged sentences

Notes to Condensed Financial Information

Supplementary Insurance Information

As of and for the Years

December 31, 2022, 2021 and 2020

Reinsurance for the Years Ended December 31, 2022, 2021 and 2020

Schedules other than those listed above are

omitted for the reason that

they are not applicable or the

information is otherwise contained

in the Financial Statements.

III Supplementary Insurance Information a s of and for the Years Ended December 31, 2023 , 2022 and 2021

IV Reinsurance for the Years Ended December 31, 2023 , 2022 and 2021

Schedules other than those listed above are omitted for the reason that they are not applicable or the information is otherwise contained in the Financial Statements.

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of Everest Re Group,

Opinions on the Financial Statements and Internal

Control over Financial Reporting

We have audited the accompanying consolidated balance

sheets of Everest Re Group, Ltd.

and its subsidiaries

(the “Company”) as of December 31, 2022 and 2021, and

the related consolidated statements of operations and

comprehensive income (loss), of changes in shareholders'

equity and of cash flows for each of the three years in

the period ended December 31, 2022, including the related

notes and financial statement schedules listed in the

index appearing on page F-1 (collectively referred to as

the “consolidated financial statements”).

audited the Company's internal control over financial reporting as

of December 31, 2022, based on criteria

established in

Internal Control - Integrated Framework

(2013) issued by the Committee of Sponsoring

Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to

above present fairly, in all material respects,

the financial position of the Company as of December

31, 2022 and 2021, and the results of its operations and

its cash flows for each of the three years in the period ended

December 31, 2022 in conformity with accounting

principles generally accepted in the United States of America.

Also in our opinion, the Company maintained, in

all material respects, effective internal control over financial

reporting as of December 31, 2022, based on

criteria established in

Internal Control - Integrated Framework

(2013) issued by the COSO.

To the Board of Directors and Shareholders of Everest Group, Ltd.

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of Everest Group, Ltd.

and its subsidiaries (the “Company”) as of December 31, 2023 and 2022, and the related consolidated statements of operations and comprehensive income (loss), of changes in shareholders' equity and of cash flows for each of the three years in the period ended December 31, 2023, including the related notes and financial statement schedules listed in the index appearing on page F-1 (collectively referred to as the “consolidated financial statements”).

We also have audited the Company's internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023 in conformity with accounting principles generally accepted in the United States of America.

Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Company's management is responsible for these consolidated

financial statements, for maintaining

effective internal control over financial reporting, and for

its assessment of the effectiveness of internal control

over financial reporting, included in Management’s Report on Internal

Control over Financial Reporting

appearing under Item 9A.

Our responsibility is to express opinions

on the Company’s consolidated financial

statements and on the Company's internal control over financial

reporting based on our audits.

We are a public

accounting firm registered with the Public Company Accounting

Oversight Board (United States) (PCAOB) and

are required to be independent with respect to the Company in

accordance with the U.S.

federal securities laws

and the applicable rules and regulations of the Securities and

Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards

of the PCAOB.

Those standards require that we plan

and perform the audits to obtain reasonable assurance about

whether the consolidated financial statements are

free of material misstatement, whether due to error or

fraud, and whether effective internal control over

financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included

performing procedures to assess the risks of

material misstatement of the consolidated financial statements,

whether due to error or fraud, and performing

procedures that respond to those risks.

Such procedures

included examining, on a test basis, evidence regarding

the amounts and disclosures in the consolidated financial

Our audits also included evaluating the

accounting principles used and significant estimates made

by management, as well as evaluating the overall

presentation of the consolidated financial statements.

audit of internal control over financial reporting

included obtaining an understanding of internal control over financial

reporting, assessing the risk that a

material weakness exists, and testing and evaluating the design

and operating effectiveness of internal control

based on the assessed risk.

Our audits also included performing

such other procedures as we considered

necessary in the circumstances.

We believe that our audits

provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control

over Financial Reporting

A company’s internal control over financial reporting is a process

designed to provide reasonable assurance

regarding the reliability of financial reporting and the preparation

of financial statements for external purposes

in accordance with generally accepted accounting principles.

A company’s internal control over financial

reporting includes those policies and procedures that (i)

pertain to the maintenance of records that, in

reasonable detail, accurately and fairly reflect the transactions

and dispositions of the assets of the company;

(ii) provide reasonable assurance that transactions are

recorded as necessary to permit preparation of financial

statements in accordance with generally accepted accounting

principles, and that receipts and expenditures of

the company are being made only in accordance with authorizations

of management and directors of the

and (iii) provide reasonable assurance regarding

prevention or timely detection of unauthorized

acquisition, use, or disposition of the company’s assets

that could have a material effect on the financial

Because of its inherent limitations, internal control over financial

reporting may not prevent or detect

misstatements.

Also, projections of any evaluation of effectiveness

to future periods are subject to the risk that

controls may become inadequate because of changes in

conditions, or that the degree of compliance with the

policies or procedures may deteriorate.

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control over Financial Reporting appearing under Item 9A.

Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits.

We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.

Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.

Our audits also included performing such other procedures as we considered necessary in the circumstances.

We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

(ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;

and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

Critical Audit Matters

The critical audit matter communicated below is a matter arising

from the current period audit of the

consolidated financial statements that was communicated

or required to be communicated to the audit

committee and that (i) relates to accounts or disclosures

that are material to the consolidated financial

statements and (ii) involved our especially challenging, subjective,

or complex judgments.

The communication

of critical audit matters does not alter in any way our opinion

on the consolidated financial statements, taken as

a whole, and we are not, by communicating the critical

audit matter below, providing a separate opinion on the

critical audit matter or on the accounts or disclosures to

which it relates.

Valuation of the Reserve for Losses and Loss Adjustment

As described in Notes 1 and 3 to the consolidated financial

statements, the Company maintains reserves equal to

the estimated ultimate liability for losses and loss adjustment

expense for reported and unreported claims for

both insurance and reinsurance businesses.

The Company’s

reserve for losses and loss adjustment expenses as

of December 31, 2022 was $22.1 billion.

Reserves are based

on estimates of ultimate losses and loss adjustment

expenses by underwriting or accident year.

uses a variety of statistical and actuarial techniques to

monitor reserve adequacy over time, evaluate new information

as it becomes known and adjust reserves as

Management considers many factors when setting reserves

including (i) exposure base and projected

ultimate premium;

(ii) expected loss ratios by product

and class of business, which are developed collaboratively

by underwriters and actuaries;

(iii) actuarial methodologies and

assumptions which analyze loss reporting and

payment experience, reports from ceding companies and historical

trends, such as reserving patterns, loss

payments and product mix;

(iv) current legal interpretations

of coverage and liability;

and (v) economic

The principal considerations for our determination that

performing procedures relating to the valuation of the

reserve for losses and loss adjustment expenses is a critical audit

matter are the significant judgment by

management when developing their estimate;

led to a high degree of auditor subjectivity, judgment

and effort in performing procedures and evaluating the audit

evidence relating to the methodologies and the

significant assumptions related to expected loss ratios

and historical trends, such as reserving patterns, loss

payments and product mix, and the audit effort involved

the use of professionals with specialized skill and

Addressing the matter involved performing procedures

and evaluating audit evidence in connection with

forming our overall opinion on the consolidated financial statements.

These procedures included testing the

effectiveness of controls relating to management’s valuation

of the reserve for losses and loss adjustment

expenses, including controls over the selection of methodologies and

development of significant assumptions.

These procedures also included, among others, testing

the completeness and accuracy of data provided by

management and the involvement of professionals with specialized

skill and knowledge to assist in performing

procedures for a sample of products and lines of business

(i) evaluating management’s methodologies

and assumptions related to expected loss ratios and historical

trends, such as, reserving patterns, loss payment

and product mix used for determining reserves for losses and

loss adjustment expenses;

and (ii) developing an

independent estimate of the reserve for losses and loss adjustment

expenses and comparing the independent

estimate to management’s actuarially determined reserves.

PricewaterhouseCoopers LLP

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Valuation of the Reserve for Losses and Loss Adjustment Expenses

As described in Notes 1 and 4 to the consolidated financial statements, the Company maintains reserves equal to the estimated ultimate liability for losses and loss adjustment expense for reported and unreported claims for both its insurance and reinsurance businesses.

The Company’s reserve for losses and loss adjustment expenses as of December 31, 2023 was $24.6 billion.

Reserves are based on estimates of ultimate losses and loss adjustment expenses by underwriting or accident year.

Management uses a variety of statistical and actuarial techniques to monitor reserve adequacy over time, evaluate new information as it becomes known and adjust reserves as warranted.

Management considers many factors when setting reserves including (i) exposure base and projected ultimate premium;

(ii) expected loss ratios by product and class of business, which are developed collaboratively by underwriters and actuaries;

(iii) actuarial methodologies and assumptions which analyze loss reporting and payment experience, reports from ceding companies and historical trends, such as reserving patterns, loss payments and product mix;

(iv) current legal interpretations of coverage and liability;

and (v) economic conditions.

The principal considerations for our determination that performing procedures relating to the valuation of the reserve for losses and loss adjustment expenses is a critical audit matter are (i) the significant judgment by management when developing their estimate, (ii) a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating the audit evidence relating to the methodologies and the significant assumptions related to expected loss ratios and historical trends, such as reserving patterns, loss payments and product mix, and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements.

These procedures included testing the effectiveness of controls relating to management’s valuation of the reserve for losses and loss adjustment expenses, including controls over the selection of methodologies and development of significant assumptions.

These procedures also included, among others, testing the completeness and accuracy of data provided by management and the involvement of professionals with specialized skill and knowledge to assist in performing procedures for a sample of products and lines of business including:

(i) evaluating management’s methodologies and assumptions related to expected loss ratios and historical trends, such as, reserving patterns, loss payment and product mix used for determining reserves for losses and loss adjustment expenses and (ii) developing an independent estimate of the reserve for losses and loss adjustment expenses and comparing the independent estimate to management’s actuarially determined reserves.

Measurement of Deferred Tax Assets related to Certain Identifiable Intangible Assets in Certain Bermuda Entities

As described in Note 16 to the consolidated financial statements, management evaluated the enactment of the Bermuda Corporate Income Tax Act of 2023 and recorded $578 million of net deferred tax assets as of December 31, 2023.

Through the Economic Transition Adjustment, the Act allows a company to establish deferred tax assets or liabilities related to the revaluation of intangible assets, excluding goodwill, and other assets and liabilities, based on fair value as of September 30, 2023.

The deferred tax assets or liabilities are then amortized in accordance with the Act.

As disclosed by management, the net deferred tax assets principally relate to the identifiable intangible assets.

Management estimated the fair value of the identifiable intangible assets using discounted future cash flow models.

The significant assumptions utilized in the discounted future cash flow models included the forecasted revenues and expected profits to be generated by the identifiable intangible assets and discount rates.

The principal considerations for our determination that performing procedures relating to the measurement of deferred tax assets related to certain identifiable intangible assets in certain Bermuda entities is a critical audit matter are (i) the significant judgment by management when developing the fair value estimate of the identifiable intangible assets, (ii) a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating management’s significant assumptions related to the forecasted revenues and expected profits to be generated by the identifiable intangible assets and the discount rates, and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements.

These procedures included testing the effectiveness of controls relating to the enactment of the Bermuda Corporate Income Tax Act of 2023, including controls over the valuation of certain identifiable intangible assets.

These procedures also included, among others, (i) testing management’s process for developing the fair value estimate of the certain identifiable intangible assets of certain Bermuda entities, (ii) evaluating the appropriateness of the discounted future cash flow models used by management, (iii) testing the completeness and accuracy of the data used in the models, (iv) evaluating the reasonableness of the significant assumptions used by management related to the forecasted revenues and expected profits to be generated by the identifiable intangible assets and the discount rates.

Evaluating management’s assumptions related to the forecasted revenues and expected profits to be generated by the identifiable intangible assets involved evaluating whether the assumptions used were reasonable considering (i) their consistency with historical revenue and profits generated by the certain Bermuda entities and (ii) whether the assumptions were consistent with evidence obtained in other areas of the audit.

Professionals with specialized skill and knowledge were used to assist in (i) evaluating the appropriateness of the discounted future cash flow models and (ii) the reasonableness of the discount rate assumptions.

/s/ PricewaterhouseCoopers LLP

New York, New York

February 28, 2024

We have served as the Company’s or its predecessor's auditor

EVEREST RE GROUP,

BALANCE SHEETS

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

We have served as the Company’s or its predecessor's auditor since 1996.

EVEREST GROUP, LTD.

CONSOLIDATED BALANCE SHEETS

(In millions of U.S.

dollars, except par value per share) 2023 2022

Fixed maturities - available for sale, at fair value

$ 27,740 $ 22,236

(amortized cost:

2023, $ 28,568 ;

2022, $ 24,191 , credit allowances:

2023, $( 48 );

2022, $( 54 ))

Fixed maturities - held to maturity, at amortized cost

2023, $ 854 ;

2022, $ 821 , net of credit allowances:

2023, $( 8 );

2022, $( 9 ))

Equity securities, at fair value 188 281

Other invested assets 4,794 4,085

Short-term investments (cost:

Short-term investments 2,127 1,032

Cash 1,437 1,398

Total investments and cash 37,142 29,872

1 unchanged sentence

Premiums receivable (net of credit allowances:

2023, $( 41 );

2022, $( 29 ))

Reinsurance paid loss recoverables (net of credit allowances:

2023, $( 26 );

2022, $( 23 ))

Reinsurance unpaid loss recoverables 2,098 2,105

4 unchanged sentences

Other assets (net of credit allowances:

2023, $( 9 );

2022, $( 5 ))

TOTAL ASSETS $ 49,399 $ 39,966

Reserve for losses and loss adjustment expenses $ 24,604 $ 22,065

Future policy benefit reserve

Unearned premium reserve 6,622 5,147

Funds held under reinsurance treaties 24 13

Other net payable to reinsurers

Amounts due to reinsurers 650 567

Losses in course of payment 171 74

Senior notes 2,349 2,347

Long-term notes 218 218

8 unchanged sentences

50.0 shares authorized;

shares issued and outstanding

no shares issued and outstanding

Common shares, par value:

200.0 shares authorized;

(2023) 74.2 and (2022) 69.9

outstanding before treasury shares

Additional paid-in capital 3,773 2,302

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

(benefit) of $

at 2022 and $

Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit)

of $( 99 ) at 2023 and $( 250 ) at 2022

( 934 ) ( 1,996 )

Treasury shares, at cost:

shares (2022) and

shares (2021)

30.8 shares (2023) and 30.8 shares (2022)

( 3,908 ) ( 3,908 )

Retained earnings 14,270 12,042

Total shareholders' equity 13,202 8,441

LIABILITIES AND SHAREHOLDERS' EQUITY

The accompanying notes are an integral

part of the consolidated financial statements.

EVEREST RE GROUP,

OF OPERATIONS

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 49,399 $ 39,966

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

EVEREST GROUP, LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

Years Ended December 31,

(Dollars in millions, except per share amounts)

(In millions of U.S.

dollars, except per share amounts) 2023 2022 2021

Premiums earned $ 13,443 $ 11,787 $ 10,406

Net investment income 1,434 830 1,165

Net gains (losses) on investments:

Credit allowances on fixed maturity securities

Gains (losses) from fair value adjustments

Net realized gains (losses) from dispositions

Total net realized capital gains

Total net gains (losses) on investments ( 276 ) ( 455 ) 258

Other income (expense) ( 14 ) ( 102 ) 37

14 unchanged sentences

Total URA(D) on securities arising during the period 986 ( 1,948 ) ( 485 )

Foreign currency translation adjustments

Foreign currency translation and other adjustments 59 ( 77 ) ( 62 )

Benefit plan actuarial net gain (loss) for the period 15 15 17

4 unchanged sentences

EARNINGS PER COMMON SHARE:

The accompanying notes are an integral part of the consolidated

financial statements.

EVEREST RE GROUP,

Basic $ 60.19 $ 15.19 $ 34.66

Diluted 60.19 15.19 34.62

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

EVEREST GROUP, LTD.

CONSOLIDATED STATEMENTS OF

CHANGES IN SHAREHOLDERS’ EQUITY

Years Ended December 31,

(Dollars in millions, except dividends per share amounts)

(In millions of U.S.

dollars, except dividends per share amounts) 2023 2022 2021

COMMON SHARES (shares outstanding):

Balance beginning of period 39 39 40

Issued during the period, net

Issued (redeemed) during the period, net 4 — —

Treasury shares acquired — — ( 1 )

6 unchanged sentences

Balance beginning of period 2,302 2,274 2,245

Public offering of shares 1,445 — —

Share-based compensation plans 26 28 29

7 unchanged sentences

Balance beginning of period 12,042 11,700 10,567

Change to beginning balance due to adoption of Accounting Standards Update 2016-13

Net income (loss) 2,517 597 1,379

Dividends declared ($

per share 2022, $

per share 2021 and $

per share 2020)

Dividends declared ($ 6.80 per share 2023, $ 6.50 per share 2022 and $ 6.20 per share 2021)

( 288 ) ( 255 ) ( 247 )

Balance end of period 14,270 12,042 11,700

3 unchanged sentences

Balance end of period ( 3,908 ) ( 3,908 ) ( 3,847 )

TOTAL SHAREHOLDERS' EQUITY,

END OF PERIOD

The accompanying notes are an integral

part of the consolidated financial statements.

EVEREST RE GROUP,

OF CASH FLOWS

TOTAL SHAREHOLDERS' EQUITY, END OF PERIOD $ 13,202 $ 8,441 $ 10,139

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

EVEREST GROUP, LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Years Ended December 31,

(Dollars in millions)

CASH FLOWS FROM OPERATING

(In millions of U.S.

dollars) 2023 2022 2021

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss) $ 2,517 $ 597 $ 1,379

Adjustments to reconcile net income

to net cash provided by operating

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

Decrease (increase) in premiums receivable ( 1,064 ) ( 435 ) ( 649 )

Decrease (increase) in funds held by reinsureds,

Decrease (increase) in reinsurance

Decrease (increase) in funds held by reinsureds, net ( 66 ) ( 197 ) ( 151 )

Decrease (increase) in reinsurance recoverables 143 ( 413 ) ( 125 )

Decrease (increase) in income taxes ( 559 ) ( 181 ) 68

Decrease (increase) in prepaid reinsurance

Increase (decrease) in reserve for losses

and loss adjustment expenses

Increase (decrease) in future policy benefit

Decrease (increase) in prepaid reinsurance premiums ( 46 ) ( 166 ) ( 128 )

Increase (decrease) in reserve for losses and loss adjustment expenses 2,256 3,477 2,805

Increase (decrease) in unearned premiums 1,387 655 1,146

Increase (decrease) in other net payable

to reinsurers

Increase (decrease) in losses in course

Increase (decrease) in amounts due to reinsurers 18 201 186

Increase (decrease) in losses in course of payment 93 ( 186 ) 134

Change in equity adjustments in limited partnerships ( 168 ) ( 94 ) ( 613 )

2 unchanged sentences

Non-cash compensation expense 49 45 43

Amortization of bond premium (accrual of

bond discount)

Amortization of bond premium (accrual of bond discount) ( 64 ) 55 76

Net (gains) losses on investments 276 455 ( 258 )

Net cash provided by (used in) operating

Net cash provided by (used in) operating activities 4,553 3,695 3,833

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from fixed maturities

matured/called/repaid - available

Proceeds from fixed maturities sold

- available for sale

Proceeds from fixed maturities

matured/called/repaid - held to

Proceeds from fixed maturities matured/called/repaid - available for sale 2,310 2,626 3,893

Proceeds from fixed maturities sold - available for sale 3,849 1,403 1,916

Proceeds from fixed maturities matured/called/repaid - held to maturity 105 39 —

Proceeds from equity securities sold 126 2,217 990

Distributions from other invested

Cost of fixed maturities acquired -

available for sale

Cost of fixed maturities acquired -

held to maturity

Distributions from other invested assets 245 266 257

Cost of fixed maturities acquired - available for sale ( 10,653 ) ( 7,344 ) ( 8,825 )

Cost of fixed maturities acquired - held to maturity ( 112 ) ( 153 ) —

Cost of equity securities acquired ( 17 ) ( 1,003 ) ( 1,098 )

2 unchanged sentences

Net change in unsettled securities transactions 181 ( 71 ) ( 203 )

Net cash provided by (used in) investing

Net cash provided by (used in) investing activities ( 5,902 ) ( 3,418 ) ( 3,869 )

CASH FLOWS FROM FINANCING ACTIVITIES:

Common shares issued during the period for

share-based compensation, net of expense

Common shares issued (redeemed) during the period for share-based compensation, net of expense ( 23 ) ( 17 ) ( 14 )

Proceeds from public offering of common shares 1,445 — —

Purchase of treasury shares — ( 61 ) ( 225 )

3 unchanged sentences

Net FHLB borrowings (repayments) 300 — 209

Cost of shares withheld on settlements of

share-based compensation awards

Net cash provided by (used in) financing

EFFECT OF EXCHANGE RATE

CHANGES ON CASH

Cost of shares withheld on settlements of share-based compensation awards ( 24 ) ( 20 ) ( 17 )

Net cash provided by (used in) financing activities 1,409 ( 359 ) 674

EFFECT OF EXCHANGE RATE CHANGES ON CASH ( 23 ) 39 1

Net increase (decrease) in cash 38 ( 42 ) 639

1 unchanged sentence

Cash, end of period $ 1,437 $ 1,398 $ 1,441

SUPPLEMENTAL CASH FLOW

SUPPLEMENTAL CASH FLOW INFORMATION:

Income taxes paid (recovered) $ 196 $ 171 $ 98

1 unchanged sentence

NON-CASH TRANSACTIONS:

Reclassification of specific investments

from fixed maturity securities,

available for sale

at fair value to fixed maturity

securities, held to maturity at amortized

cost net of credit allowances

The accompanying notes are an integral part of the consolidated

financial statements.

NOTES TO CONSOLIDATED

FINANCIAL STATEMENTS

December 31, 2022, 2021

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

to fixed maturity securities, held to maturity at amortized cost net of credit allowances $ — $ 722 $ —

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended December 31, 2023, 2022 and 2021

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business and Basis of Presentation.

a Bermuda company,

subsidiaries, principally

provides reinsurance

international

Group and its subsidiaries.

following domestic

direct and indirect

subsidiaries of Gro

Everest International

Reinsurance, Ltd.

International”),

International

(“International

International

International”),

Underwriting Services

(“Premiere”),

Limited (Ireland)

Dublin Holdings”),

Insurance (Ireland),

activity company

(“Holdings”),

International

(“Specialty”),

Entertainment

Risk Purchasing

(“Specialty RPG”),

L.L.C., Everest

Company (“Everest

National”), Everest

Reinsurance Company

Securities, Inc.,

All intercompany

transactions have

been eliminated.

of operations

and financial

entities ("VOE")

a controlling

Company is considered to be the primary beneficiary.

The consolidation assessment, including

the determination

circumstances

The preparation

in conformity

and liabilities

(and disclosure

of contingent

liabilities) at the date of the financial

statements and the reported

amounts of revenues and expenses

reporting period.

Ultimate actual results could differ,

possibly materially,

from those estimates.

reclassifications

presentation.

Everest Group, Ltd.

(“Group”), a Bermuda company, through its subsidiaries, principally provides reinsurance and insurance in the U.S., Bermuda and international markets.

As used in this document, “Company” means Group and its subsidiaries.

Effective July 10, 2023, the Company changed Group’s name to Everest Group, Ltd.

from Everest Re Group, Ltd.

and started trading under a new ticker symbol (NYSE:

EG) to reflect the evolution, global growth and diversification strategy of the Company.

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

The statements include all of the following domestic and foreign direct and indirect subsidiaries of Group:

Everest International Reinsurance, Ltd.

(“Everest International”), Mt.

Logan Insurance Managers, Ltd., Mt.

Logan Management, Ltd., Everest International Holdings (Bermuda), Ltd.

(“International Holdings”), Everest Corporate Member Limited, Everest Service Company (UK), Ltd., Everest Preferred International Holdings, Ltd.

(“Preferred International”), Everest Reinsurance (Bermuda), Ltd.

(“Bermuda Re”), Everest Re Advisors, Ltd., Everest Advisors (UK), Ltd., Everest Compañia de Seguros Generales Chile S.A.

(“Everest Chile”), Everest Underwriting Group (Ireland), Limited (“Holdings Ireland”), Everest Global Services, Inc.

(“Global Services”), Everest Insurance Company of Canada (“Everest Canada”), Premiere Insurance Underwriting Services (“Premiere”), Everest Dublin Insurance Holdings Limited (Ireland) (“Everest Dublin Holdings”), Everest Insurance (Ireland), dac (“Ireland Insurance”), Everest Reinsurance Company (Ireland), dac (“Ireland Re”), Everest Reinsurance Holdings, Inc.

(“Holdings”), Salus Systems, LLC (“Salus”), Everest International Assurance, Ltd.

(Bermuda) (“Everest Assurance”), Specialty Insurance Group, Inc.

(“Specialty”), Specialty Insurance Group - Leisure and Entertainment Risk Purchasing Group LLC (“Specialty RPG”), Mt.

McKinley Managers, L.L.C., Everest Specialty Underwriters Services, LLC, Everest Reinsurance Company (“Everest Re”), Everest National Insurance Company (“Everest National”), Everest Reinsurance Company Ltda.

(Brazil), Mt.

Whitney Securities, Inc., Everest Indemnity Insurance Company (“Everest Indemnity”), Everest Denali Insurance Company (“Everest Denali”), Everest Premier Insurance Company (“Everest Premier”), Everest Security Insurance Company (“Everest Security”), Everest Service Company Mexico, and Everest Service Company Colombia.

All intercompany accounts and transactions have been eliminated.

All amounts are reported in U.S.

The Company consolidates the results of operations and financial position of all voting interest entities ("VOE") in which the Company has a controlling financial interest and all variable interest entities ("VIE") in which the Company is considered to be the primary beneficiary.

The consolidation assessment, including the determination as to whether an entity qualifies as a VIE or VOE, depends on the facts and circumstances surrounding each entity.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities (and disclosure of contingent assets and liabilities) at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

Ultimate actual results could differ, possibly materially, from those estimates.

Certain reclassifications and format changes have been made to prior years’ amounts to conform to the 2023 presentation.

Investments and Cash.

securities designated

and depreciation,

in shareholders’

comprehensive

then assesses

its assessment,

rate environment

specific issuer

impairment, but

accumulated other comprehensive

income (loss).

If the Company intends

to sell the impaired security

an anticipated

and comprehensive

income (loss).

determines that

the security;

before recovery

establishes a

credit allowance

gains (losses)

on investments

of operations

and comprehensive

The determination

or non-credit

related impairment is

first based on an

assessment of qualitative

factors, which may

determine that a qualitative

sufficient to

conclusion that

quantitative assessment

is performed, and the

amount of the allowance

for a given security

will generally be the

the Company’s

carrying value.

the credit allowance account

for future changes

in credit loss estimates

for a security and record

this adjustment

comprehensive income (loss).

both the positive

intent and ability

maturity or redemption

and are reported

at amortized cost,

determined in the

same manner as interest

income for fixed

maturity securities available

classified as

utilizing risk

characteristics

considerations,

subordination

incorporation

macroeconomic

current expected credit losses.

allowance for

uncollectible

received when

that has not been accrued, it is recorded as income

at that time.

The Company’s

assessments are

expected future

financial position,

enhancements or

default rates

on mortgage-backed

and asset-backed

securities, as

relevant information provided

by rating agencies, investment

advisors and analysts.

Retrospective

and mortgage-backed

securities have

a pass-through

acquisition lot

to recalculate

the effective

The recalculated

the new yield

were applied at

the time of acquisition.

Outstanding principal

the time of acquisition

computed with

histories and

weighted average

maturities, are

calculation of projected prepayments

for pass-through security types.

equity securities,

on investments.

income on all fixed maturities

and dividend income on all equity securities

are included as part of net

income in the consolidated statements

of operations and comprehensive

income (loss).

securities due

stated at cost, which appro

ximates fair value.

of investments

flow characteristics

will estimate

with opinions

reasonableness.

illiquid, the

own assumptions

and risk-adjusted

determine fair value.

partnerships,

company-owned

Company-owned

surrender value and changes in the policy cash

surrender value are included within net investment

contractually

withdrawal or usage.

include trust funds set up for the benefit of ceding companies.

Allowance for Premium Receivable

and Reinsurance Recoverables

credit losses.

the recoverability

and establishes an allowance for estimated

uncollectible amounts.

retrospectively-rated

premiums, are primarily

comprised of premiums

due from policyholders/

Balances are considered

contractually

adjusted for current economic

conditions and reasonable and supportable

forecasts, when appropriate.

A portion of the

Company's commercial

lines business is

written with large

deductibles or under

retrospectively-

claim and the

subsequently reimbursed

reimbursement

Retrospectively-rated

retrospectively-rated

substantially

could be adversely

a significant portion of

such policyholders failed

the Company for

retrospectively-rated

requirements,

retrospectively-rated

receivable exposed

to loss multiplied

probability of

policyholder's

Credit ratings

forward-looking

retrospectively-rated

considers the current economic

environment as well as the probability

-weighted macroeconomic scenarios.

records total

expenses related

receivable in

Other underwriting

Company’s consolidate

statements of operations

and comprehensive income (loss).

uncollectible

unwillingness

uncollectible

recoverable or charge

off reinsurer balances that are

determined to be uncollectible.

Due to the inherent

uncertainties as to

collection and the length

of time before reinsurance

recoverable become

due, it is possible that future adjustments

to the Company’s reinsurance

recoverable, net

of the allowance, could

material adverse

the Company’s

consolidated results

of operations

cash flows in a particular quarter or annual period.

The allowance

of reinsurance

loss multiplied

recoverable net

of collateral

and other offsets,

considering the nature

of the collateral,

potential future

in collateral

historical loss

information for

collateral obtained.

The probability

historical insurer

and reinsurer

liabilities with similar

the reinsured liabilities

forward-looking

economic outcomes.

The Company's

evaluation of

the required allowance

for reinsurance

the current economic environment

as well as macroeconomic scenarios.

adjustment expenses in the Company’s

consolidated statements

of operations and comprehensive

income (loss).

Write-offs of

reinsurance recoverable

and any related

allowance are recorded

in the period in

which the balance

is deemed uncollectible.

Fixed maturity securities designated as available for sale reflect unrealized appreciation and depreciation, as a result of changes in fair value during the period, in shareholders’ equity, net of income taxes in “accumulated other comprehensive income (loss)” in the consolidated balance sheets.

The Company reviews all of its fixed maturity, available for sale securities whose fair value has fallen below their amortized cost at the time of review.

The Company then assesses whether the decline in value is due to non-credit related or credit related factors.

In making its assessment, the Company evaluates the current market and interest rate environment as well as specific issuer information.

Generally, a change in a security’s value caused by a change in the market, interest rate or foreign exchange environment does not constitute a credit impairment, but rather a non-credit related decline in fair value.

Non-credit related declines in fair value are recorded as unrealized losses in accumulated other comprehensive income (loss).

If the Company intends to

sell the impaired security or is more likely than not to be required to sell the security before an anticipated recovery in value, the Company records the entire impairment in net gains (losses) on investments in the Company’s consolidated statements of operations and comprehensive income (loss).

If the Company determines that the decline is credit related and the Company does not have the intent to sell the security;

and it is more likely than not that the Company will not have to sell the security before recovery of its cost basis, the Company establishes a credit allowance equal to the estimated credit loss and is recorded in net gains (losses) on investments in the Company’s consolidated statements of operations and comprehensive income (loss).

The determination of credit related or non-credit related impairment is first based on an assessment of qualitative factors, which may determine that a qualitative analysis is sufficient to support the conclusion that the present value of expected cash flows equals or exceeds the security’s amortized cost basis.

However, if the qualitative assessment suggests a credit loss may exist, a quantitative assessment is performed, and the amount of the allowance for a given security will generally be the difference between a discounted cash flow model and the Company’s carrying value.

The Company will adjust the credit allowance account for future changes in credit loss estimates for a security and record this adjustment through net gains (losses) on investments in the Company’s consolidated statements of operations and comprehensive income (loss).

Fixed maturity securities designated as held to maturity consist of debt securities for which the Company has both the positive intent and ability to hold to maturity or redemption and are reported at amortized cost, net of the current expected credit loss allowance.

Interest income for fixed maturity securities held to maturity is determined in the same manner as interest income for fixed maturity securities available for sale.

The Company evaluates fixed maturity securities classified as held to maturity for current expected credit losses utilizing risk characteristics of each security, including credit rating, remaining time to maturity, adjusted for prepayment considerations, and subordination level, and applying default and recovery rates, which include the incorporation of historical credit loss experience and macroeconomic forecasts, to develop an estimate of current expected credit losses.

The Company does not create an allowance for uncollectible interest.

If interest is not received when due, the interest receivable is immediately reversed and no additional interest is accrued.

If future interest is received that has not been accrued, it is recorded as income at that time.

The Company’s assessments are based on the issuers’ current and expected future financial position, timeliness with respect to interest and/or principal payments, speed of repayments and any applicable credit enhancements or breakeven constant default rates on mortgage-backed and asset-backed securities, as well as relevant information provided by rating agencies, investment advisors and analysts.

Retrospective adjustments are employed to recalculate the values of asset-backed securities.

All of the Company’s asset-backed and mortgage-backed securities have a pass-through structure.

Each acquisition lot is reviewed to recalculate the effective yield.

The recalculated effective yield is used to derive a book value as if the new yield were applied at the time of acquisition.

Outstanding principal factors from the time of acquisition to the adjustment date are used to calculate the prepayment history for all applicable securities.

Conditional prepayment rates, computed with life to date factor histories and weighted average maturities, are used in the calculation of projected prepayments for pass-through security types.

For equity securities, the Company reflects changes in fair value as net gains (losses) on investments.

Interest income on all fixed maturities and dividend income on all equity securities are included as part of net investment income in the consolidated statements of operations and comprehensive income (loss).

Short-term investments comprise securities due to mature within one year from the date of purchase and are stated at cost, which approximates fair value.

Realized gains or losses on sales of investments are determined on the basis of identified cost.

For some non-publicly traded securities, market prices are determined through the use of pricing models that evaluate securities relative to the U.S.

Treasury yield curve, taking into account the issue type, credit quality, and cash flow characteristics of each security.

For other non-publicly traded securities, investment managers’ valuation committees will estimate fair value and in many instances, these fair values are supported with opinions from qualified independent third parties.

All fair value estimates from investment managers are reviewed by the Company for reasonableness.

For publicly traded securities, fair value is based on quoted market prices or valuation models that use observable market inputs.

When a sector of the financial markets is inactive or illiquid, the Company may use its own assumptions about future cash flows and risk-adjusted discount rates to determine fair value.

Other invested assets include limited partnerships, corporate-owned life insurance (“COLI’), rabbi trusts and other investments.

Limited partnerships are accounted for under the equity method of accounting, which can be recorded on a monthly or quarterly lag and are included within net investment income.

Corporate-owned life insurance policies are carried at policy cash surrender value and changes in the policy cash surrender value are included within net investment income.

Cash includes cash on hand.

Restricted cash is included within cash in the consolidated balance sheets and represents amounts held for the benefit of third parties that is legally or contractually restricted as to its withdrawal or usage.

Amounts include trust funds set up for the benefit of ceding companies.

Allowance for Premium Receivable and Reinsurance Recoverables.

The Company applies the Current Expected Credit Losses (CECL) methodology for estimating allowances for credit losses.

The Company evaluates the recoverability of its premiums and reinsurance recoverable balances and establishes an allowance for estimated uncollectible amounts.

Premiums receivable, excluding receivables for losses within a deductible and retrospectively-rated policy premiums, are primarily comprised of premiums due from policyholders/ cedents.

Balances are considered past due when amounts that have been billed are not collected within contractually stipulated time periods.

For these balances, the allowance is estimated based on recent historical credit loss and collection experience, adjusted for current economic conditions and reasonable and supportable forecasts, when appropriate.

A portion of the Company's commercial lines business is written with large deductibles or under retrospectively-rated plans.

Under some commercial insurance contracts with a large deductible, the Company is obligated to pay the claimant the full amount of the claim and the Company is subsequently reimbursed by the policyholder for the deductible amount.

As such, the Company is subject to credit risk until reimbursement is made.

Retrospectively-rated policies are policies whereby the ultimate premium is adjusted based on actual losses incurred.

Although the premium adjustment feature of a retrospectively-rated policy substantially reduces insurance risk for the Company, it presents credit risk to the Company.

The Company’s results of operations could be adversely affected if a significant portion of such policyholders failed to reimburse the Company for the deductible amount or the amount of additional premium owed under retrospectively-rated policies.

The Company manages these credit risks through credit analysis, collateral requirements, and oversight.

The allowance for receivables for loss within a deductible and retrospectively-rated policy premiums is recorded within other assets in the consolidated balance sheets.

The allowance is estimated as the amount of the receivable exposed to loss multiplied by estimated factors for probability of default.

The probability of default is assigned based on each policyholder's credit rating, or a rating is estimated if no external rating is available.

Credit ratings are reviewed and updated at least annually.

The exposure amount is estimated net of collateral and other offsets, considering the nature of the collateral, potential future changes in collateral values, and historical loss information for the type of collateral obtained.

The probability of default factors are historical corporate defaults for receivables with similar durations estimated through multiple economic cycles.

Credit ratings are forward-looking and consider a variety of economic outcomes.

The Company's evaluation of the required allowance for receivables for loss within a deductible and retrospectively-rated policy premiums considers the current economic environment as well as the probability-weighted macroeconomic scenarios.

The Company records total credit loss expenses related to premiums receivable in Other underwriting expenses and records credit loss expenses related to deductibles in Incurred losses and loss adjustment expenses in the Company’s consolidated statements of operations and comprehensive income (loss).

The allowance for uncollectible reinsurance recoverable 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 recoverable comprises an allowance and an allowance for disputed balances.

Based on this analysis, the Company may adjust the allowance for uncollectible reinsurance recoverable or charge off reinsurer balances that are determined to be uncollectible.

Due to the inherent uncertainties as to collection and the length of time before reinsurance recoverable become due, it is possible that future adjustments to the Company’s reinsurance recoverable, net of the allowance, could be required, which could have a material adverse effect on the Company’s consolidated results of operations or cash flows in a particular quarter or annual period.

The allowance is estimated as the amount of reinsurance recoverable exposed to loss multiplied by estimated factors for the probability of default.

The reinsurance recoverable exposed is the amount of reinsurance recoverable net of collateral and other offsets, considering the nature of the collateral, potential future changes in collateral values, and historical loss information for the type of collateral obtained.

The probability of default factors are historical insurer and reinsurer defaults for liabilities with similar durations to the reinsured liabilities as estimated through multiple economic cycles.

Credit ratings are forward-looking and consider a variety of economic outcomes.

The Company's evaluation of the required allowance for reinsurance recoverable considers the current economic environment as well as macroeconomic scenarios.

The Company records credit loss expenses related to reinsurance recoverable in Incurred losses and loss adjustment expenses in the Company’s consolidated statements of operations and comprehensive income (loss).

Write-offs of reinsurance recoverable and any related allowance are recorded in the period in which the balance is deemed uncollectible.

Deferred Acquisition Costs.

Acquisition costs,

consisting principally

of commissions

and brokerage

certain premium

Company’s reinsurance

and insurance business,

and amortized over

the period in which the

investment income.

Reserve for Losses and Loss Adjustment

on individual

case estimates

received from

ceding companies.

based on past

Provisions are

also included for

certain potential

liabilities, including those

environmental

which liabilities

itional reserving

are presented

presented net of reinsurance.

percentage to

decrease based

experience of the

estimates for

arrangements are

commission expense.

Commission accruals

for contracts

with adjustable

are estimated based on expected

loss and LAE.

Future Policy Benefit Reserve.

particular period may fluctuate from

expected results.

Acquisition costs, consisting principally of commissions and brokerage expenses and certain premium taxes and fees incurred at the time a contract or policy is issued and that vary with and are directly related to the Company’s reinsurance and insurance business, are deferred and amortized over the period in which the related premiums are earned.

Deferred acquisition costs are limited to their estimated realizable value by line of business based on the related unearned premiums, anticipated claims and claim expenses and anticipated investment income.

Reserve for Losses and Loss Adjustment Expenses.

The reserve for losses and loss adjustment expenses (“LAE”) is based on individual case estimates and reports received from ceding companies.

A provision is included for losses and LAE incurred but not reported (“IBNR”) based on past experience.

Provisions are also included for certain potential liabilities, including those relating to asbestos and environmental (“A&E”) exposures, catastrophe exposures, COVID-19 and other exposures, for which liabilities cannot be estimated using traditional reserving techniques.

See also Note 6.

Share-Based Compensation.

Share-based compensation

stock option,

performance share

expensed over

deferred until the time the award

is exercised or vests

(becomes unrestricted).

Application of Recently Issued Accounting

new accounting

the Company’s

consolidated financial

statements as

well as material

previous assessments,

from the Company’s

Annual Report on

Form 10-K for

the year ended

December 31, 2021.

There were no

accounting standards

issued for the year

ended December 31, 2022, that

are expected to

have a material

appreciation/(depreciation)

Share-based compensation stock option, restricted share and performance share unit awards are fair valued at the grant date and expensed over the vesting period of the award.

The tax benefit on the recorded expense is deferred until the time the award is exercised or vests (becomes unrestricted).

Recent Accounting Pronouncements.

Adoption of New Accounting Standards

The Company did not adopt any new accounting standards that had a material impact in 2023.

Future Adoption of Recently Issued Accounting Standards

The Company assessed the adoption impacts of recently issued accounting standards that are effective after 2023 by the Financial Accounting Standards Board on the Company’s consolidated financial statements.

Additionally, the Company assessed whether there have been material updates to previously issued accounting standards that are effective after

There were no accounting standards identified, other than those directly referenced below, that are expected to have a material impact to Group.

Improvements to Income Tax Disclosures.

In December 2023, the Financial Accounting Standards Board issued Accounting Standard Update No.

2023-09, which requires expanded income tax disclosures, including the disaggregation of existing disclosures related to the tax rate reconciliation and income taxes paid.

The guidance is effective for annual periods beginning after December 15, 2024.

Prospective application is required, with retrospective application permitted.

The Company is currently evaluating the effect the updated guidance will have on the Company's financial statement disclosures.

The tables below present the amortized cost, allowance for credit losses, gross unrealized appreciation/(depreciation) (“URA(D)”) and fair value of fixed maturity securities - available for sale for the periods indicated:

At December 31, 2023

Allowance for

(Dollars in millions)

Credit Losses

(Dollars in millions) Amortized

Cost Allowance for

Credit Losses Unrealized

Appreciation Unrealized

Depreciation Fair

Fixed maturity securities - available for sale

6 unchanged sentences

Mortgage-backed securities

Commercial 1,091 — 1 ( 92 ) 1,000

Agency residential 4,869 — 55 ( 229 ) 4,695

5 unchanged sentences

At December 31, 2022

Allowance for

(Dollars in millions)

Credit Losses

(Dollars in millions) Amortized

Cost Allowance for

Credit Losses Unrealized

Appreciation Unrealized

Depreciation Fair

Fixed maturity securities - available for sale

6 unchanged sentences

Mortgage-backed securities

Commercial 1,023 — — ( 105 ) 919

Agency residential 3,382 — 7 ( 290 ) 3,099

4 unchanged sentences

(Some amounts may not reconcile due to rounding.)

appreciation/(depreciation) and fair

value of fixed maturity securities held to

maturity for the periods indicated:

The following table shows amortized cost, allowance for credit losses, gross URA(D) and fair value of fixed maturity securities - held to maturity for the periods indicated:

At December 31, 2023

Allowance for

(Dollars in millions)

Credit Losses

(Dollars in millions) Amortized

Cost Allowance for

Credit Losses Unrealized

Appreciation Unrealized

Depreciation Fair

Fixed maturity securities - held to maturity

2 unchanged sentences

Mortgage-backed securities

Commercial 21 — — — 21

Foreign corporate securities 84 ( 1 ) 7 — 90

Total fixed maturity securities - held to maturity $ 864 $ ( 8 ) $ 12 $ ( 13 ) $ 854

(Some amounts may not reconcile due

to rounding.)

The amortized

Mortgage-backed

fixed maturity

stated maturity

of such securities may

not be indicative

of actual maturities,

totals for mortgage-backed

and asset-backed

securities are shown separately.

At December 31, 2022

(Some amounts may not reconcile due to rounding.)

At December 31, 2022

(Dollars in millions)

(Dollars in millions) Amortized

Cost Allowance for

Credit Losses Unrealized

Appreciation Unrealized

Depreciation Fair

Fixed maturity securities - held to maturity

Corporate securities $ 152 $ ( 2 ) $ — $ ( 6 ) $ 144

Asset-backed securities 661 ( 6 ) 2 ( 15 ) 642

Mortgage-backed securities

Commercial 7 — — — 7

Foreign corporate securities 28 ( 1 ) 2 — 28

Total fixed maturity securities - held to maturity $ 848 $ ( 9 ) $ 3 $ ( 22 ) $ 821

(Some amounts may not reconcile due to rounding.)

The amortized cost and fair value of fixed maturity securities - available for sale are shown in the following table by contractual maturity.

As the stated maturity of such securities may not be indicative of actual maturities, the totals for mortgage-backed and asset-backed securities are shown separately.

At December 31, 2023 At December 31, 2022

(Dollars in millions) Amortized

Value Amortized

Fixed maturity securities - available for sale

5 unchanged sentences

Mortgage-backed securities

Commercial 1,091 1,000 1,023 919

Agency residential 4,869 4,695 3,382 3,099

2 unchanged sentences

(Some amounts may not reconcile due to rounding.)

The amortized

maturity securities

the following

Mortgage-backed

maturity securities.

As the stated

maturity of such securities may not be indicative

of actual maturities, the totals

for mortgage-backed and

asset-backed securities

are shown separately.

At December 31, 2022

(Dollars in millions)

The amortized cost and fair value of fixed maturity securities - held to maturity are shown in the following table by contractual maturity.

As the stated maturity of such securities may not be indicative of actual maturities, the totals for mortgage-backed and asset-backed securities are shown separately.

At December 31, 2023 At December 31, 2022

(Dollars in millions) Amortized

Value Amortized

Fixed maturity securities - held to maturity

5 unchanged sentences

Mortgage-backed securities

Commercial 21 21 7 7

Total fixed maturity securities - held to maturity $ 864 $ 854 $ 848 $ 821

(Some amounts may not reconcile due

to rounding.)

re-designated

reclassified at

credit losses,

was subsequently recognized

as the new amortized

As of the date of transfer,

these securities had an

comprehensive

income through

an adjustment

securities over

the remaining life of the securities.

The Company evaluated

fixed maturity

securities classified as

held to maturity

expected credit

2022 utilizing

risk characteristics

including credit

rating, remaining

considerations,

subordination

incorporation

macroeconomic

develop an estimate

of current expected

credit losses.

fixed maturities classified

as held to maturity

a high credit quality and are all rated

investment grade as of December

(depreciation)

following sources for the periods

(Some amounts may not reconcile due to rounding.)

During 2022, the Company re-designated a portion of its fixed maturity securities from its fixed maturity - available for sale portfolio to its fixed maturity - held to maturity portfolio.

The fair value of the securities reclassified at the date of transfer was $ 722 million, net of allowance for current expected credit losses, which was subsequently recognized as the new amortized cost basis.

As of December 31, 2023, $ 42 million of unrealized loss from the date of the re-designation remained in accumulated other comprehensive income on the balance sheet and will be amortized into income through an adjustment to the yields of the underlying securities over the remaining life of the securities.

The fair values of these securities incorporate the use of significant unobservable inputs and therefore are classified as Level 3 within the fair value hierarchy.

The Company evaluated fixed maturity securities classified as held to maturity for current expected credit losses as of December 31, 2023 utilizing risk characteristics of each security, including credit rating, remaining time to maturity, adjusted for prepayment considerations, and subordination level, and applying default and recovery rates, which include the incorporation of historical credit loss experience and macroeconomic forecasts, to develop an estimate of current expected credit losses.

These fixed maturities classified as held to maturity are of a high credit quality and are all rated investment grade as of December 31, 2023.

The changes in net URA(D) for the Company’s investments are as follows:

Years Ended December 31,

2 unchanged sentences

of investments carried at fair value, and deferred taxes thereon:

Fixed maturity securities and short-term investments

Fixed maturity securities - available for sale and short-term investments $ 1,129 $ ( 2,225 )

Change in unrealized appreciation (depreciation), pre-tax 1,129 ( 2,225 )

Deferred tax benefit (expense) ( 142 ) 277

Change in unrealized appreciation (depreciation),

net of deferred taxes, included in shareholders’ equity

Change in URA(D), net of deferred taxes, included in shareholders’ equity $ 986 $ ( 1,948 )

(Some amounts may not reconcile due to rounding.)

individual securities had been in a continuous unrealized

loss position for the periods indicated.

Duration of Unrealized Loss at December

31, 2022 By Security Type

Less than 12 months

Greater than 12 months

(Dollars in millions)

Fixed maturity securities - available for

Treasury securities and

obligations of

The tables below display the aggregate fair value and gross unrealized depreciation of fixed maturity securities - available for sale by security type and contractual maturity, in each case subdivided according to length of time that individual securities had been in a continuous unrealized loss position for the periods indicated:

Duration of Unrealized Loss at December 31, 2023 By Security Type

Less than 12 months Greater than 12 months Total

(Dollars in millions) Fair Value Gross

Depreciation Fair Value Gross

Fixed maturity securities - available for sale

Treasury securities and obligations of

government agencies and corporations $ 122 $ ( 3 ) $ 772 $ ( 49 ) $ 893 $ ( 52 )

Obligations of U.S.

political subdivisions

states and political subdivisions 3 — 74 ( 11 ) 77 ( 11 )

Corporate securities 1,019 ( 58 ) 2,780 ( 263 ) 3,799 ( 321 )

1 unchanged sentence

Mortgage-backed securities

Commercial 181 ( 19 ) 742 ( 73 ) 923 ( 92 )

Agency residential 423 ( 4 ) 2,126 ( 225 ) 2,549 ( 229 )

2 unchanged sentences

Foreign corporate securities 324 ( 6 ) 2,726 ( 265 ) 3,050 ( 271 )

Securities where an allowance for credit

loss was recorded

maturity securities - available for

Total $ 2,564 $ ( 101 ) $ 12,222 $ ( 1,035 ) $ 14,787 $ ( 1,136 )

Securities where an allowance for credit loss was recorded 2 ( 1 ) — — 2 ( 1 )

Total fixed maturity securities - available for sale $ 2,566 $ ( 102 ) $ 12,222 $ ( 1,035 ) $ 14,789 $ ( 1,137 )

(Some amounts may not reconcile due to rounding.)

Duration of Unrealized Loss at December

31, 2022 By Maturity

Less than 12 months

Greater than 12 months

(Dollars in millions)

Fixed maturity securities - available for

Duration of Unrealized Loss at December 31, 2023 By Maturity

Less than 12 months Greater than 12 months Total

(Dollars in millions) Fair Value Gross

Depreciation Fair Value Gross

Fixed maturity securities - available for sale

Due in one year or less $ 184 $ ( 3 ) $ 773 $ ( 30 ) $ 958 $ ( 33 )

4 unchanged sentences

Mortgage-backed securities 729 ( 24 ) 2,872 ( 298 ) 3,601 ( 323 )

Securities where an allowance for credi

loss was recorded

maturity securities - available for

Total $ 2,564 $ ( 101 ) $ 12,222 $ ( 1,035 ) $ 14,787 $ ( 1,136 )

Securities where an allowance for credit loss was recorded 2 ( 1 ) — — 2 ( 1 )

Total fixed maturity securities - available for sale $ 2,566 $ ( 102 ) $ 12,222 $ ( 1,035 ) $ 14,789 $ ( 1,137 )

(Some amounts may not reconcile due to rounding.)

The aggregate

gross unrealized

losses related

to investments

unrealized loss

December 31, 2022 were $

billion and $

billion, respectively.

The market value

of securities for the single

December 31, 2022,

did not exceed

overall market

fixed maturity

The market value of the securities

for the issuer with the second largest

unrealized loss comprised less

of the Company’s

fixed maturity

In addition, as indicated

on the above table,

concentration of unrealized

losses in any one market

billion of unrealized

losses related to

maturity securities that

have been in an

unrealized loss position

for less than one

year were generally

mortgage-backed

securities and

to securities

losses related

maturity securities

loss position

mortgage-backed

securities and

foreign government

Of these unrealized

that were rated

nationally recognized

rating agency.

In all instances,

flow shortfalls

interest obligations.

The mortgage-backed securities still

have excess credit coverage

and are current on interest

and principal payments.

these securities;

and it is more

likely than not that

the Company will not have

to sell the security before

principal and interest payments.

individual securities

loss position

periods indicated.

depreciation as

maturity securities

an allowance for credit losses.

Duration of Unrealized Loss at December

31, 2021 By Security Type

Less than 12 months

Greater than 12 months

(Dollars in millions)

Fixed maturity securities - available for

Treasury securities and

obligations of

The aggregate fair value and gross unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position at December 31, 2023 were $ 14.8 billion and $ 1.1 billion, respectively.

The fair value of securities for the single issuer (the United States government) whose securities comprised the largest unrealized loss position at December 31, 2023, did not exceed 3.0 % of the overall market value of the Company’s fixed maturity securities.

The fair value of the securities for the issuer with the second largest unrealized loss comprised less than 0.7 % of the Company’s fixed maturity securities.

In addition, as indicated on the above table, there was no significant concentration of unrealized losses in any one market sector.

The $ 102 million of unrealized losses related to fixed maturity securities that have been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate securities, asset-backed securities, agency residential mortgage-backed securities and foreign government securities.

Of these unrealized losses, $ 86 million were related to securities that were rated investment grade by at least one nationally recognized statistical rating agency.

The $ 1.0 billion of unrealized losses related to fixed maturity securities in an unrealized loss position for more than one year related primarily to domestic and foreign corporate securities, agency residential mortgage-backed securities and foreign government securities.

Of these unrealized losses, $ 1.0 billion were related to securities that were rated investment grade by at least one nationally recognized statistical rating agency.

In all instances, there were no projected cash flow shortfalls to recover the full book value of the investments and the related interest obligations.

The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments.

Duration of Unrealized Loss at December 31, 2022 By Security Type

Less than 12 months Greater than 12 months Total

(Dollars in millions) Fair Value Gross

Depreciation Fair Value Gross

Fixed maturity securities - available for sale

Treasury securities and obligations of

government agencies and corporations $ 668 $ ( 31 ) $ 487 $ ( 52 ) $ 1,155 $ ( 82 )

Obligations of U.S.

political subdivisions

states and political subdivisions 235 ( 23 ) 27 ( 9 ) 261 ( 32 )

Corporate securities 4,143 ( 326 ) 1,316 ( 234 ) 5,459 ( 561 )

1 unchanged sentence

Mortgage-backed securities

Commercial 806 ( 90 ) 101 ( 15 ) 907 ( 105 )

Agency residential 1,905 ( 132 ) 870 ( 158 ) 2,776 ( 289 )

2 unchanged sentences

Foreign corporate securities 3,264 ( 372 ) 853 ( 189 ) 4,117 ( 561 )

maturity securities - available for

Total $ 15,213 $ ( 1,217 ) $ 4,432 $ ( 764 ) $ 19,645 $ ( 1,982 )

Securities where an allowance for credit loss was recorded 2 — — — 2 —

Total fixed maturity securities - available for sale $ 15,215 $ ( 1,217 ) $ 4,432 $ ( 764 ) $ 19,647 $ ( 1,982 )

(Some amounts may not reconcile due to rounding.)

Duration of Unrealized Loss at December

31, 2021 By Maturity

Less than 12 months

Greater than 12 months

(Dollars in millions)

Fixed maturity securities - available for

Duration of Unrealized Loss at December 31, 2022 By Maturity

Less than 12 months Greater than 12 months Total

(Dollars in millions) Fair Value Gross

Depreciation Fair Value Gross

Fixed maturity securities - available for sale

Due in one year or less $ 989 $ ( 19 ) $ 40 $ ( 7 ) $ 1,029 $ ( 26 )

4 unchanged sentences

Mortgage-backed securities 2,715 ( 222 ) 972 ( 173 ) 3,687 ( 395 )

maturity securities - available for

Total $ 15,213 $ ( 1,217 ) $ 4,432 $ ( 764 ) $ 19,645 $ ( 1,982 )

Securities where an allowance for credit loss was recorded 2 — — — 2 —

Total fixed maturity securities - available for sale $ 15,215 $ ( 1,217 ) $ 4,432 $ ( 764 ) $ 19,647 $ ( 1,982 )

(Some amounts may not reconcile due to rounding.)

The aggregate

gross unrealized

losses related

to investments

unrealized loss

December 31, 2021 were $

billion and $

million, respectively.

The market value

of securities for the single

December 31, 2021,

did not exceed

overall market

fixed maturity

The market value of the securities

for the issuer with the second largest

unrealized loss comprised less

of the Company’s

fixed maturity

In addition, as indicated

on the above table,

concentration

of unrealized

losses related

maturity securities

in an unrealized

loss position

than one year

related primarily

backed securities.

unrealized losses,

securities that

mortgage-backed securities still

have excess credit coverage

and are current on interest

and principal payments.

The components of net investment

income are presented in the table

below for the periods indicated:

The aggregate fair value and gross unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position at December 31, 2022 were $ 19.6 billion and $ 2.0 billion, respectively.

The fair value of securities for the single issuer (the United States government) whose securities comprised the largest unrealized loss position at December 31, 2022, did not exceed 5.2 % of the overall fair value of the Company’s fixed maturity securities.

The fair value of the securities for the issuer with the second largest unrealized loss comprised less than 0.2 % of the Company’s fixed maturity securities.

In addition, as indicated on the above table, there was no significant concentration of unrealized losses in any one market sector.

The $ 1.2 billion of unrealized losses related to fixed maturity securities that have been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate securities, asset-backed securities, agency residential mortgage-backed securities and foreign government securities.

Of these unrealized losses, $ 1.1 billion were related to securities that were rated investment grade by at least one nationally recognized statistical rating agency.

The $ 764 million of unrealized losses related to fixed maturity securities in an unrealized loss position for more than one year related primarily to domestic and foreign corporate securities, agency residential mortgage-backed securities and foreign government securities.

Of these unrealized losses, $ 732 million were related to securities that were rated investment grade by at least one nationally recognized statistical rating agency.

In all instances, there were no projected cash flow shortfalls to recover the full book value of the

investments and the related interest obligations.

The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments.

The components of net investment income are presented in the table below for the periods indicated:

Years Ended December 31,

5 unchanged sentences

Limited partnerships 122 75 565

Other 59 29 63

Gross investment income before adjustments 1,477 890 1,208

5 unchanged sentences

(Some amounts may not reconcile due to rounding.)

partnerships is dependent

upon the Company’s

share of the net asset

values of interests

underlying each limited

partnerships,

decline in value

partnership during

this lag period,

in the period

Company identifies the decline.

The Company had

contractual commitments

up to an additional

billion in limited partnerships

placement loans

These commitments

with the partnership and

loan agreements, which have

investment periods that

expire, unless extended,

During the fourth

quarter of 2022, the

Company entered

into corporate

-owned life insurance

policies, which are

carried within other invested assets

at policy cash surrender value of $

million as of December 31, 2022.

Variable Interest

certain essential

characteristics

financial interest,

majority kick-out

lacks sufficient

own activities

without financial

whether the Company has

a controlling financial interest

in the VIE and therefore

is the primary beneficiary.

significantly impact

performance of

obligation to

absorb losses

Consolidated Financial Statements.

As of December 31, 2022 and

2021, the Company did

t hold any securities

for which it is the primary beneficiary.

non-consolidated

it is not the

primary beneficiary as

it has no ability

to direct activities

that could significantly

affect the economic

performance of the

The Company’s

maximum exposure

of December 31, 2022

respectively,

billion whereby the

Company is committed

to fund these investments

and may be called

by the partnership

investments are generally

of a passive nature in that the Company

does not take an active role in management.

collateralized

loan obligations

classified as

fixed maturities.

provided financial

other support

subordination

direct the activities

significantly impact

performance of

The components of net realized capital

gains (losses) are presented in the

table below for the periods indicated:

The Company records results from limited partnership investments on the equity method of accounting with changes in value reported through net investment income.

The net investment income from limited partnerships is dependent upon the Company’s share of the net asset values of interests underlying each limited partnership.

Due to the timing of receiving financial information from these partnerships, the results are generally reported on a one month or quarter lag.

If the Company determines there has been a significant decline in value of a limited partnership during this lag period, a loss will be recorded in the period in which the Company identifies the decline.

The Company had contractual commitments to invest up to an additional $ 2.8 billion in limited partnerships and private placement loans at December 31, 2023.

These commitments will be funded when called in accordance with the partnership and loan agreements, which have investment periods that expire, unless extended, through 2027.

During the fourth quarter of 2022, the Company entered into corporate-owned life insurance (“COLI”) policies, which are invested in debt and equity securities.

The COLI policies are carried within other invested assets at policy cash surrender value of $ 1.3 billion and $ 939 million as of December 31, 2023 and December 31, 2022, respectively.

Variable Interest Entities

The Company is engaged with various special purpose entities and other entities that are deemed to be VIEs primarily as an investor through normal investment activities but also as an investment manager.

A VIE is an entity that either has investors that lack certain essential characteristics of a controlling financial interest, such as simple majority kick-out rights, or lacks sufficient funds to finance its own activities without financial support provided by other entities.

The Company performs ongoing qualitative assessments of its VIEs to determine whether the Company has a controlling financial interest in the VIE and therefore is the primary beneficiary.

The Company is deemed to have a controlling financial interest when it has both the ability to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE.

Based on the Company’s assessment, if it determines it is the primary beneficiary, the Company consolidates the VIE in the Company’s Consolidated Financial Statements.

As of December 31, 2023 and 2022, the Company did not hold any securities for which it is the primary beneficiary.

The Company, through normal investment activities, makes passive investments in general and limited partnerships and other alternative investments.

For these non-consolidated VIEs, the Company has determined it is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic performance of the investments.

The Company’s maximum exposure to loss as of December 31, 2023 and 2022 is limited to the total carrying value of $ 4.8 billion and $ 4.1 billion, respectively, which are included in general and limited partnerships, COLI policies and other alternative investments in other invested assets in the Company's consolidated balance sheets.

As of December 31, 2023, the Company has outstanding commitments totaling $ 2.1 billion whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses.

These investments are generally of a passive nature in that the Company does not take an active role in management.

In addition, the Company makes passive investments in structured securities issued by VIEs for which the Company is not the manager.

These investments are included in asset-backed securities, which includes collateralized loan obligations and are classified as fixed maturities - available for sale.

The Company has not provided financial or other support with respect to these investments other than its original investment.

For these investments, the Company determined it is not the primary beneficiary due to the relative size of the Company’s investment in comparison to the principal amount of the structured securities issued by the VIEs, the level of credit subordination which reduces the Company’s obligation to absorb losses or right to receive benefits and the Company’s inability to direct the activities that most significantly impact the economic performance of the VIEs.

The Company’s maximum exposure to loss on these investments is limited to the amount of the Company’s investment.

The components of net gains (losses) on investments are presented in the table below for the periods indicated:

Years Ended December 31,

9 unchanged sentences

Short-term investments gain (loss) — — —

Total net realized gains (losses) on investments

Total net gains (losses) on investments $ ( 276 ) $ ( 455 ) $ 258

(Some amounts may not reconcile due to rounding.)

credit losses for the periods indicated:

Roll Forward of Allowance for Credit Losses

The following tables provide a roll forward of the Company’s beginning and ending balance of allowance for credit losses for the periods indicated:

Roll Forward of Allowance for Credit Losses - Fixed Maturities - Available for Sale

Twelve Months Ended December 31, 2023

Securities Asset-Backed

Securities Foreign

Securities Total

(Dollars in millions)

Beginning Balance $ ( 45 ) $ — $ ( 10 ) $ ( 54 )

Credit losses on securities where credit

losses were not previously recorded

Increases in allowance on previously

impaired securities

Decreases in allowance on previously

impaired securities

Credit losses on securities where credit losses were not previously recorded ( 23 ) — — ( 24 )

Increases in allowance on previously impaired securities ( 1 ) — — ( 1 )

Decreases in allowance on previously impaired securities — — — —

Reduction in allowance due to disposals 22 — 8 30

Balance as of December 31

Balance, end of period $ ( 47 ) $ — $ ( 1 ) $ ( 48 )

(Some amounts may not reconcile due to rounding.)

Credit losses recorded as of December 31,

2022 for HTM were $

million and $

million for Corporate, asset-backed

securities and foreign

corporate securities, respectively.

Roll Forward of Allowance for Credit Losses

Roll Forward of Allowance for Credit Losses - Fixed Maturities - Held to Maturity

Twelve Months Ended December 31, 2023

Securities Asset-Backed

Securities Foreign

Securities Total

(Dollars in millions)

Beginning Balance $ ( 2 ) $ ( 6 ) $ ( 1 ) $ ( 9 )

Credit losses on securities where credit

losses were not previously recorded

Increases in allowance on previously

impaired securities

Credit losses on securities where credit losses were not previously recorded — — — —

Increases in allowance on previously impaired securities — — — —

Decreases in allowance on previously impaired securities — — — —

Reduction in allowance due to disposals — 1 — 1

Balance, end of period $ ( 2 ) $ ( 5 ) $ ( 1 ) $ ( 8 )

(Some amounts may not reconcile due to rounding.)

Roll Forward of Allowance for Credit Losses - Fixed Maturities - Available for Sale

Twelve Months Ended December 31, 2022

Securities Asset-Backed

Securities Foreign

Securities Total

(Dollars in millions)

Beginning Balance $ ( 19 ) $ ( 8 ) $ ( 3 ) $ ( 30 )

Credit losses on securities where credit losses were not previously recorded ( 11 ) — ( 16 ) ( 26 )

Increases in allowance on previously impaired securities ( 20 ) — ( 1 ) ( 21 )

Decreases in allowance on previously impaired securities

Reduction in allowance due to disposals 6 8 10 23

Balance, end of period $ ( 45 ) $ — $ ( 10 ) $ ( 54 )

(Some amounts may not reconcile due to rounding.)

Roll Forward of Allowance for Credit Losses - Fixed Maturities - Held to Maturity

Twelve Months Ended December 31, 2022

Securities Asset-Backed

Securities Foreign

Securities Total

(Dollars in millions)

Beginning Balance $ — $ — $ — $ —

Credit losses on securities where credit losses were not previously recorded ( 2 ) ( 6 ) ( 1 ) ( 9 )

Increases in allowance on previously impaired securities — — — —

Decreases in allowance on previously

Reduction in allowance due to disposals — — — —

Balance as of December 31

Balance, end of period $ ( 2 ) $ ( 6 ) $ ( 1 ) $ ( 9 )

(Some amounts may not reconcile due to rounding.)

The proceeds and

split between gross

gains and losses,

from sales of

fixed maturity

securities - available

and equity securities, are presented in the table

below for the periods indicated:

The proceeds and split between gross gains and losses, from sales of fixed maturity securities - available for sale and equity securities, are presented in the table below for the periods indicated:

Years Ended December 31,

6 unchanged sentences

Gross losses from sales — ( 53 ) ( 15 )

Securities with a

carrying value

December 31, 2022

deposit with various

or governmental insurance departments

in compliance with insurance laws.

RESERVE FOR LOSSES, LAE AND FUTURE

POLICY BENEFIT RESERVE

Reserves for losses and LAE.

The following

table provides

a roll forward

of the Company’s

beginning and

ending reserve

summarized for the periods indicated:

Securities with a carrying value amount of $ 1.4 billion at December 31, 2023 were on deposit with or regulated by various state or governmental insurance departments in compliance with insurance laws.

GAAP guidance regarding fair value measurements address how companies should measure fair value when they are required to use fair value measures for recognition or disclosure purposes under GAAP and provides a common definition of fair value to be used throughout GAAP.

It defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly fashion between market participants at the measurement date.

In addition, it establishes a three-level valuation hierarchy for the disclosure of fair value measurements.

The valuation hierarchy is based on the transparency of inputs to the valuation of an asset or liability.

The level in the hierarchy within which a given fair value measurement falls is determined based on the lowest level input that is significant to the measurement, with Level 1 being the highest priority and Level 3 being the lowest priority.

The levels in the hierarchy are defined as follows:

Inputs to the valuation methodology are observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in an active market;

Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument;

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

The Company’s fixed maturity and equity securities are managed both internally and on an external basis by independent, professional investment managers using portfolio guidelines approved by the Company.

The Company obtains prices from nationally recognized pricing services.

These services seek to utilize market data and observations in their

evaluation process.

These services use pricing applications that vary by asset class and incorporate available market information and when fixed maturity securities do not trade on a daily basis the services will apply available information through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing.

In addition, they use model processes, such as the Option Adjusted Spread model to develop prepayment and interest rate scenarios for securities that have prepayment features.

The Company does not make any changes to prices received from the pricing services.

In addition, the Company has procedures in place to review the reasonableness of the prices from the service providers and may request verification of the prices.

The Company also continually performs quantitative and qualitative analysis of prices, including but not limited to initial and ongoing review of pricing methodologies, review of prices obtained from pricing services and third party investment asset managers, review of pricing statistics and trends, and comparison of prices for certain securities with a secondary price source for reasonableness.

No material variances were noted during these price validation procedures.

In limited situations, where financial markets are inactive or illiquid, the Company may use its own assumptions about future cash flows and risk-adjusted discount rates to determine fair value.

At December 31, 2023, $ 2.0 billion of fixed maturities were fair valued using unobservable inputs.

The majority of these fixed maturities were valued by investment managers’ valuation committees and many of these fair values were substantiated by valuations from independent third parties.

The Company has procedures in place to evaluate these independent third-party valuations.

At December 31, 2022, $ 1.7 billion of fixed maturities, fair value were fair valued using unobservable inputs.

Equity securities denominated in U.S.

currency with quoted prices in active markets for identical assets are categorized as Level 1 since the quoted prices are directly observable.

Equity securities traded on foreign exchanges are categorized as Level 2 due to the added input of a foreign exchange conversion rate to determine fair value.

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

Fixed maturity securities listed in the tables have been categorized as Level 2, since a particular security may not have traded but the pricing services are able to use valuation models with observable market inputs such as interest rate yield curves and prices for similar fixed maturity securities in terms of issuer, maturity and seniority.

For foreign government securities and foreign corporate securities, the fair values provided by the third party pricing services in local currencies, and where applicable, are converted to U.S.

dollars using currency exchange rates from nationally recognized sources.

In addition, some of the fixed maturities with fair values categorized as Level 3 result when prices are not available from the nationally recognized pricing services and are obtained from investment managers and are derived using unobservable inputs.

The Company will value the securities with unobservable inputs using comparable market information or receive fair values from investment managers.

The investment managers may obtain non-binding price quotes for the securities from brokers.

The single broker quotes are provided by market makers or broker-dealers who are recognized as market participants in the markets in which they are providing the quotes.

The prices received from brokers are reviewed for reasonableness by the third party asset managers and the Company.

If the broker quotes are for foreign denominated securities, the quotes are converted to U.S.

dollars using currency exchange rates from nationally recognized sources.

The composition and valuation inputs for the presented fixed maturities categories Level 1 and Level 2 are as follows:

Treasury securities and obligations of U.S.

government agencies and corporations are primarily comprised of U.S.

Treasury bonds and the fair value is based on observable market inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields;

• Obligations of U.S.

states and political subdivisions are comprised of state and municipal bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads;

• Corporate securities are primarily comprised of U.S.

corporate and public utility bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads;

• Asset-backed and mortgage-backed securities fair values are based on observable inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields and cash flow models using observable inputs such as prepayment speeds, collateral performance and default spreads;

• Foreign government securities are comprised of global non-U.S.

sovereign bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S.

dollars using an exchange rate from a nationally recognized source;

• Foreign corporate securities are comprised of global non-U.S.

corporate bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S.

dollars using an exchange rate from a nationally recognized source.

The following table presents the fair value measurement levels for all assets and liabilities, which the Company has recorded at fair value as of the periods indicated:

Fair Value Measurement Using:

(Dollars in millions) December 31, 2023 Quoted Prices

(Level 1) Significant

(Level 2) Significant

Fixed maturities - available for sale

Treasury securities and obligations of

government agencies and corporations $ 996 $ — $ 996 $ —

Obligations of U.S.

States and political subdivisions 128 — 128 —

Corporate securities 7,353 — 6,681 672

Asset-backed securities 5,618 — 4,313 1,305

Mortgage-backed securities

Commercial 1,000 — 1,000 —

Agency residential 4,695 — 4,695 —

Non-agency residential 443 — 443 —

Foreign government securities 1,967 — 1,967 —

Foreign corporate securities 5,540 — 5,524 16

Total fixed maturities - available for sale 27,740 — 25,747 1,993

Equity securities, fair value 188 70 118 —

(Some amounts may not reconcile due to rounding.)

The following table presents the fair value measurement levels for all assets and liabilities, which the Company has recorded at fair value as of the periods indicated:

Fair Value Measurement Using:

(Dollars in millions) December 31, 2022 Quoted Prices

(Level 1) Significant

(Level 2) Significant

Fixed maturities - available for sale

Treasury securities and obligations of

government agencies and corporations $ 1,257 $ — $ 1,257 $ —

Obligations of U.S.

States and political subdivisions 413 — 413 —

Corporate securities 6,469 — 5,754 715

Asset-backed securities 4,063 — 3,069 994

Mortgage-backed securities

Commercial 919 — 919 —

Agency residential 3,099 — 3,099 —

Non-agency residential 4 — 4 —

Foreign government securities 1,415 — 1,415 —

Foreign corporate securities 4,596 — 4,579 16

Total fixed maturities - available for sale 22,236 — 20,511 1,725

Equity securities, fair value 281 132 150 —

(Some amounts may not reconcile due to rounding.)

The following table presents the activity under Level 3, fair value measurements using significant unobservable inputs for fixed maturities - available for sale, for the periods indicated:

Total Fixed Maturities - Available for Sale

December 31, 2023 December 31, 2022

(Dollars in millions) Corporate

Securities Asset-Backed

Securities CMBS Foreign

Corporate Total Corporate

Securities Asset-Backed

Securities CMBS Foreign

Corporate Total

Beginning balance fixed maturities $ 715 $ 994 $ — $ 16 $ 1,725 $ 801 $ 1,251 $ — $ 16 $ 2,068

Total gains or (losses) (realized/unrealized)

Included in earnings (or changes in net assets) 4 — — — 4 ( 10 ) — — — ( 10 )

Included in other comprehensive income (loss) ( 2 ) 6 — — 4 3 ( 35 ) — ( 4 ) ( 36 )

Purchases, issuances and settlements ( 45 ) 305 — — 260 ( 45 ) 513 6 8 481

Transfers in and/or (out) of Level 3 — — — — — ( 35 ) ( 735 ) ( 6 ) ( 4 ) ( 779 )

Ending balance $ 672 $ 1,305 $ — $ 16 $ 1,993 $ 715 $ 994 $ — $ 16 $ 1,725

The amount of total gains or losses for the period

included in earnings (or changes in net assets)

attributable to the change in unrealized gains

or losses relating to assets still held

at the reporting date $ 9 $ — $ — $ — $ 9 $ ( 23 ) $ 8 $ — $ — $ ( 15 )

(Some amounts may not reconcile due to rounding.)

There were no transfers of assets in/(out) of Level 3 during 2023.

The $ 779 million shown as transfers in/(out) of Level 3 and reclassification of securities in/(out) of investment categories for the year ended December 31, 2022 related mainly to previously designated Level 3 securities that the Company had reclassified from “fixed maturities - available for sale” to “fixed maturities - held to maturity” during 2022.

As “fixed maturities - held to maturity" are carried at amortized cost, net of credit allowances rather than at fair value as “fixed maturities - available for sale”, these securities are no longer included within the fair value hierarchy table or in the roll forward of Level 3 securities.

The fair values of these securities are determined in a similar manner as the Company’s

fixed maturity securities - available for sale as described above.

The fair values of these securities incorporate the use of significant unobservable inputs and therefore are classified as Level 3 within the fair value hierarchy as of December 31, 2022.

Financial Instruments Disclosed, But Not Reported, at Fair Value

Certain financial instruments disclosed, but not reported, at fair value are excluded from the fair value hierarchy tables above.

Fair values of fixed maturity securities - held to maturity, senior notes and long-term subordinated notes can be found within Notes 2, 8 and 9, respectively.

Short-term investments are stated at cost, which approximates fair value.

Exempt from Fair Value Disclosure Requirements

Certain financial instruments are exempt from the requirements for fair value disclosure, such as limited partnerships accounted for under the equity method and pension and other postretirement obligations.

The Company’s investment in COLI policies are recorded at their cash surrender value and are therefore not required to be included in the tables above.

See Note 1 of the Notes to these Consolidated Financial Statements for details of investments in COLI policies.

In addition, $ 274 million and $ 292 million of investments within other invested assets on the consolidated balance sheets as of December 31, 2023 and 2022, respectively, are not included within the fair value hierarchy tables as the assets are measured at net asset value (“NAV”) as a practical expedient to determine fair value.

RESERVE FOR LOSSES AND LAE

Reserve for losses and LAE.

The following table provides a roll forward of the Company’s beginning and ending reserve for losses and LAE and is summarized for the periods indicated:

Years Ended December 31,

4 unchanged sentences

Incurred related to:

Current year 8,432 8,102 7,400

Prior years ( 5 ) ( 2 ) ( 9 )

Total incurred losses and LAE 8,427 8,100 7,391

Paid related to:

Current year 1,379 1,220 2,491

Prior years 4,731 3,740 2,226

Total paid losses and LAE 6,110 4,960 4,717

3 unchanged sentences

Gross reserves end of period $ 24,604 $ 22,065 $ 19,009

(Some amounts may not reconcile due

to rounding.)

incurred losses

and 2020, respectively.

2022, reflecting

in underlying

incurred losses

the Ukraine/Russia

offset by decrease of $

million in 2022 current year catastrophe

losses compared to 2021.

and an evolving

sanctions have

been levied against

United States.

The significant

political and

economic uncertainty

and associated

have impacted economic and investment

markets both within Russia and around

attritional losses.

attritional losses

earned, partially

million of losses related to COVID-19

in 2020 which did not recur in 2021.

Incurred prior years

losses were $(

) million in 2022, ($

) million in 2021 and $

million in 2020.

The favorable

compensation and

of business, as

well as attritional

The favorable

claim frequency

disaggregated

characteristics

settled, resulting

and increased

Property claims

losses, which

claims depending

the frequency and severity of catastrophes

claims in any one accident year.

December 31, 2021 is presented as supplementary

The Cumulative

for Insurance

reported claims

underlying the

individual claim

not provided.

This business

reported claims for the remaining

business would distort any analytics

performed on the group.

The Cumulative Number

Claims shown for

the Insurance Casualty

is determined by

claim and line of

a claim event with a single claimant that

spans two lines of business contributes two claims.

reinsurance for each of our disclosed lines

(Some amounts may not reconcile due to rounding.)

Current year incurred losses were $ 8.4 billion, $ 8.1 billion and $ 7.4 billion in 2023, 2022 and 2021, respectively.

The increase in current year incurred losses from 2022 to 2023 was primarily related to an increase of $ 916 million in current year attritional losses, resulting from the impact of the increase in premiums earned and changes in the mix of business, partially offset by a decrease of $ 585 million in current year catastrophe losses.

The recent emergence of the Middle East war and t he ongoing war in the Ukraine are evolving events.

Economic and legal sanctions have been levied against Russia, specific named individuals and entities connected to the Russian government, as well as businesses located in the Russian Federation and/or owned by Russian nationals in numerous countries, including the United States.

The significant political and economic uncertainty surrounding these wars and

associated sanctions have impacted economic and investment markets both within Russia, Ukraine, the Middle East region, and around the world.

Gross and net reserves increased in 2022, reflecting an increase in underlying exposure due to earned premium growth, year over year, the impact of $ 45 million of incurred losses related to the Ukraine/Russia war, partially offset by a decrease of $ 80 million in 2022 current year catastrophe losses compared to 2021.

Incurred prior years favorable development in losses were $ 5 million in 2023, $ 2 million in 2022 and $ 9 million in 2021.

The net favorable development on prior year reserves of $ 5 million in 2023 is comprised of $ 397 million of favorable development on prior years attritional losses for reinsurance lines, mainly related to mortgage and short-tail lines of business, mostly offset by $ 392 million of unfavorable development on prior years attritional losses for insurance lines, mainly related to casualty lines for accident years from 2016 through 2019.

The favorable development on prior year reserves of $ 2 million in 2022 is primarily driven by better than expected loss emergence in workers’ compensation and surety lines of business, as well as attritional property.

The favorable development on prior year reserves of $ 9 million in 2021 is primarily driven by a commutation and reserve releases within the Reinsurance segment.

The following is information about incurred and paid claims development as of December 31, 2023, net of reinsurance, as well as cumulative claim frequency and the total of incurred but not reported liabilities (IBNR) plus expected development on reported claims included within the net incurred claims amounts.

Each of the Company’s financial reporting segments has been disaggregated into casualty and property business.

The casualty and property segregation results in groups that have homogeneous loss development characteristics and are large enough to represent credible trends.

Generally, casualty claims take longer to be reported and settled, resulting in longer payout patterns and increased volatility.

Property claims on the other hand, tend to be reported and settled quicker and therefore tend to exhibit less volatility.

The property business is more exposed to catastrophe losses, which can result in year over year fluctuations in incurred claims depending on the frequency and severity of catastrophes claims in any one accident year.

The information about incurred and paid claims development for the years ended December 31, 2014 to December 31, 2022 is presented as supplementary information.

The Cumulative Number of Reported Claims is shown only for Insurance Casualty as it is impractical to provide the information for the remaining groups.

The reinsurance groups each include pro rata contracts for which ceding companies provide only summary information via a bordereau.

This summary information does not include the number of reported claims underlying the paid and reported losses.

Therefore, it is not possible to provide this information.

The Insurance Property group includes Accident and Health insurance business.

This business is written via a master contract and individual claim counts are not provided.

This business represents a significant enough portion of the business in the Insurance Property group so that including the number of reported claims for the remaining business would distort any analytics performed on the group.

The Cumulative Number of Reported Claims shown for the Insurance Casualty is determined by claim and line of business.

For example, a claim event with three claimants in the same line of business is a single claim.

However, a claim event with a single claimant that spans two lines of business contributes two claims.

Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Liability for Unpaid Claims and Claim Adjustment Expenses

The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated statement of financial position is as follows:

December 31, 2023

(Dollars in millions)

Net outstanding liabilities

Reinsurance Casualty $ 11,493

Reinsurance Property 5,379

Insurance Casualty 4,629

Insurance Property 690

Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance 22,192

Reinsurance recoverable on unpaid claims

Reinsurance Casualty 89

Reinsurance Property 551

Insurance Casualty 1,300

Insurance Property 157

Total reinsurance recoverable on unpaid claims 2,098

Insurance lines other than short-duration —

Unallocated claims adjustment expenses 269

Total gross liability for unpaid claims and claim adjustment expense $ 24,604

(Some amounts may not reconcile due to rounding.)

The following tables present the ultimate loss and ALAE and the paid loss and ALAE, net of reinsurance for casualty and property, as well as the average annual percentage payout of incurred claims by age, net of reinsurance for each of our disclosed lines of business.

Reinsurance - Casualty Business

At December 31, 2023

IBNR Liabilities

Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance

Years Ended December 31, Total of

IBNR Liabilities

Plus Expected

Years Ended December 31,

Claims Cumulative

Accident Year 2014

(unaudited) 2015

(unaudited) 2016

(unaudited) 2017

(unaudited) 2018

(unaudited) 2019

(unaudited) 2020

(unaudited) 2021

(unaudited) 2022

(unaudited) 2023

(Dollars in millions)

2014 $ 881 $ 928 $ 815 $ 792 $ 750 $ 727 $ 740 $ 738 $ 728 $ 720 $ — N/A

2015 900 828 824 822 805 842 842 840 839 42 N/A

2016 800 877 874 869 945 946 977 1,007 79 N/A

2017 883 843 849 931 939 995 1,059 78 N/A

2018 1,388 1,385 1,462 1,493 1,561 1,658 320 N/A

2019 1,734 1,799 1,801 1,826 1,867 520 N/A

2020 1,947 1,919 1,898 1,859 799 N/A

2021 2,497 2,492 2,433 1,496 N/A

2022 2,764 2,722 2,049 N/A

2023 3,023 2,537 N/A

(Some amounts may not reconcile due to rounding.)

2 unchanged sentences

Accident Year 2014

(unaudited) 2015

(unaudited) 2016

(unaudited) 2017

(unaudited) 2018

(unaudited) 2019

(unaudited) 2020

(unaudited) 2021

(unaudited) 2022

(unaudited) 2023

(Dollars in millions)

2014 $ 58 $ 123 $ 214 $ 304 $ 429 $ 505 $ 550 $ 591 $ 613 $ 635

2015 58 160 267 413 502 571 618 654 682

2016 90 191 326 432 546 622 699 767

2017 81 189 321 462 585 687 796

2018 170 294 480 636 819 998

2019 224 354 523 728 957

2020 199 312 496 729

2021 213 322 547

All outstanding liabilities prior to 2014, net of reinsurance 995

1 unchanged sentence

(Some amounts may not reconcile due to rounding.)

Average Annual Percentage

Payout of Incurred Loss by

Age, Net of Reinsurance (unaudited)

Average Annual Percentage Payout of Incurred Loss by Age, Net of Reinsurance (unaudited)

Years 1 2 3 4 5 6 7 8 9 10

Casualty 8.8 % 7.2 % 10.7 % 12.0 % 12.1 % 9.5 % 7.6 % 5.7 % 3.3 % 2.9 %

Reinsurance - Property Business

At December 31, 2023

IBNR Liabilities

Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance

Years Ended December 31, Total of

IBNR Liabilities

Plus Expected

Years Ended December 31,

Claims Cumulative

Accident Year 2014

(unaudited) 2015

(unaudited) 2016

(unaudited) 2017

(unaudited) 2018

(unaudited) 2019

(unaudited) 2020

(unaudited) 2021

(unaudited) 2022

(unaudited) 2023

(Dollars in millions)

2014 $ 1,511 $ 1,214 $ 1,019 $ 926 $ 925 $ 926 $ 919 $ 919 $ 917 $ 917 $ 8 N/A

2015 1,522 1,044 964 938 941 933 935 932 929 1 N/A

2016 1,689 1,510 1,546 1,540 1,517 1,518 1,515 1,517 16 N/A

2017 2,781 3,404 3,515 3,643 3,689 3,699 3,713 9 N/A

2018 2,615 2,491 2,493 2,431 2,384 2,369 ( 1 ) N/A

2019 2,014 2,045 1,991 1,875 1,879 ( 13 ) N/A

2020 2,397 2,470 2,414 2,386 58 N/A

2021 2,751 2,777 2,699 152 N/A

2022 3,247 2,926 822 N/A

2023 2,791 1,537 N/A

(Some amounts may not reconcile due to rounding.)

2 unchanged sentences

Accident Year 2014

(unaudited) 2015

(unaudited) 2016

(unaudited) 2017

(unaudited) 2018

(unaudited) 2019

(unaudited) 2020

(unaudited) 2021

(unaudited) 2022

(unaudited) 2023

(Dollars in millions)

2014 $ 361 $ 632 $ 756 $ 830 $ 862 $ 872 $ 879 $ 881 $ 882 $ 882

2015 372 596 746 829 857 878 887 893 896

2016 461 951 1,239 1,357 1,410 1,429 1,442 1,453

2017 813 2,174 2,739 3,124 3,326 3,420 3,495

2018 541 1,520 1,865 2,061 2,133 2,198

2019 716 1,167 1,489 1,651 1,778

2020 576 1,302 1,711 1,993

2021 676 1,528 2,024

2022 638 1,389

All outstanding liabilities prior to 2014, net of reinsurance ( 24 )

1 unchanged sentence

(Some amounts may not reconcile due to rounding.)

Average Annual Percentage

Payout of Incurred Loss by

Age, Net of Reinsurance (unaudited)

Average Annual Percentage Payout of Incurred Loss by Age, Net of Reinsurance (unaudited)

Years 1 2 3 4 5 6 7 8 9 10

Property 26.1 % 31.6 % 16.5 % 9.5 % 4.5 % 2.2 % 1.5 % 0.6 % 0.3 % 0.1 %

Insurance - Casualty Business

At December 31, 2023

IBNR Liabilities

Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance

Years Ended December 31, Total of

IBNR Liabilities

Plus Expected

Years Ended December 31,

Claims Cumulative

Accident Year 2014

(unaudited) 2015

(unaudited) 2016

(unaudited) 2017

(unaudited) 2018

(unaudited) 2019

(unaudited) 2020

(unaudited) 2021

(unaudited) 2022

(unaudited) 2023

(Dollars in millions)

2014 $ 431 $ 457 $ 454 $ 460 $ 397 $ 398 $ 399 $ 398 $ 400 $ 399 $ 21 26,359

2015 519 528 535 542 468 472 472 479 482 25 28,556

2016 552 550 579 613 550 539 542 551 36 33,104

2017 610 601 621 653 629 631 668 74 37,077

2018 702 706 743 756 771 867 139 37,914

2019 849 846 877 887 1,076 211 41,579

2020 994 1,050 1,045 1,035 304 39,785

2021 1,190 1,248 1,258 546 46,257

2022 1,369 1,364 805 47,484

2023 1,567 964 36,849

(Some amounts may not reconcile due to rounding.)

2 unchanged sentences

Accident Year 2014

(unaudited) 2015

(unaudited) 2016

(unaudited) 2017

(unaudited) 2018

(unaudited) 2019

(unaudited) 2020

(unaudited) 2021

(unaudited) 2022

(unaudited) 2023

(Dollars in millions)

2014 $ 41 $ 125 $ 202 $ 257 $ 298 $ 326 $ 339 $ 351 $ 360 $ 368

2015 44 135 219 292 353 382 413 435 448

2016 55 164 269 342 401 443 481 504

2017 54 172 280 379 454 529 571

2018 63 208 317 444 594 696

2019 72 235 397 551 729

2020 67 236 388 556

2021 110 261 483

All outstanding liabilities prior to 2014, net of reinsurance 125

1 unchanged sentence

(Some amounts may not reconcile due to rounding.)

Average Annual Percentage

Payout of Incurred Loss by

Age, Net of Reinsurance (unaudited)

Average Annual Percentage Payout of Incurred Loss by Age, Net of Reinsurance (unaudited)

Years 1 2 3 4 5 6 7 8 9 10

Casualty 7.4 % 16.3 % 16.1 % 14.8 % 14.0 % 9.3 % 6.0 % 3.9 % 2.5 % 2.0 %

Insurance - Property Business

At December 31, 2023

IBNR Liabilities

Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance

Years Ended December 31, Total of

IBNR Liabilities

Plus Expected

Years Ended December 31,

Claims Cumulative

Accident Year 2014

(unaudited) 2015

(unaudited) 2016

(unaudited) 2017

(unaudited) 2018

(unaudited) 2019

(unaudited) 2020

(unaudited) 2021

(unaudited) 2022

(unaudited) 2023

(Dollars in millions)

2014 $ 140 $ 143 $ 137 $ 135 $ 135 $ 135 $ 135 $ 135 $ 135 $ 135 $ — N/A

2015 188 171 162 163 164 165 166 168 167 1 N/A

2016 296 292 295 304 309 311 311 314 2 N/A

2017 498 507 498 506 508 520 522 4 N/A

2018 412 408 410 419 438 446 6 N/A

2019 360 367 364 379 395 9 N/A

2020 614 519 514 521 30 N/A

2021 660 595 609 41 N/A

2022 783 806 141 N/A

2023 734 215 N/A

(Some amounts may not reconcile due to rounding.)

2 unchanged sentences

Accident Year 2014

(unaudited) 2015

(unaudited) 2016

(unaudited) 2017

(unaudited) 2018

(unaudited) 2019

(unaudited) 2020

(unaudited) 2021

(unaudited) 2022

(unaudited) 2023

(Dollars in millions)

2014 $ 86 $ 127 $ 133 $ 134 $ 134 $ 134 $ 134 $ 134 $ 134 $ 134

2015 108 153 158 161 163 164 165 166 166

2016 168 259 283 302 308 310 310 311

2017 181 429 465 489 507 516 517

2018 246 364 385 418 433 439

2019 233 325 350 369 378

2020 301 427 467 483

2021 332 488 550

All outstanding liabilities prior to 2014, net of reinsurance —

1 unchanged sentence

(Some amounts may not reconcile due to rounding.)

Average Annual Percentage

Payout of Incurred Loss by

Age, Net of Reinsurance (unaudited)

Reconciliation of the Disclosure of Incurred

and Paid Claims Development to the Liability for

Unpaid Claims

and Claim Adjustment Expenses

The reconciliation of the net incurred and

paid claims development tables to the liability

for claims and claim

adjustment expenses in the consolidated

statement of financial position is as follows.

December 31, 2022

(Dollars in thousands)

Net outstanding liabilities

Reinsurance Casualty

Reinsurance Property

Insurance Casualty

Insurance Property

Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance

Reinsurance recoverable on unpaid claims

Reinsurance Casualty

Reinsurance Property

Insurance Casualty

Insurance Property

Total reinsurance recoverable

on unpaid claims

Insurance lines other than short-duration

Unallocated claims adjustment expenses

Total gross liability for unpaid claims and claim adjustment expense

(Some amounts may not reconcile due to rounding.)

Average Annual Percentage Payout of Incurred Loss by Age, Net of Reinsurance (unaudited)

Years 1 2 3 4 5 6 7 8 9 10

Property 52.5 % 31.6 % 7.1 % 4.6 % 2.5 % 1.2 % 0.2 % 0.2 % 0.1 % — %

Reserving Methodology

The Company maintains

reserves equal to our estimated

ultimate liability for losses

and loss adjustment expense

underwriting or

accident year,

reserves including:

projected ultimate

developed collaboratively

by underwriters

and actuaries;

methodologies

interpretations

developed through

collaboration

with actuarial,

underwriting, claims,

finance departments

participation of the relevant

parties from actuarial, finance,

claims and segment senior management

responsibility for

recommending and

approving management’s

best estimate.

further reviewed

single best estimate

viewed by management

to be the best

estimate of its ultimate

loss liability.

Actual loss and

substantially,

period in which the change in estimated ultimate

loss and LAE is recorded.

requirements.

monthly/quarterly

corresponding

For certain pro

rata contracts,

the Company may

require a detailed

loss report for

claims that exceed

dollar threshold

and facultative

precautionary

Underwriting, Claim, Reinsurance Accounting,

and Internal Audit

Departments perform various

of ceding companies, particularly larger ceding companies,

including on-site audits.

reasonably homogeneous loss

development characteristics

and are large enough

to facilitate

credible estimation

approximately

reserve estimates.

selection characteristics

exposure groupings

historical duration

reported and settled and casualty

lines are generally referred

to as long tail lines.

of ultimate losses for

volatility than those for the longer tail

methodologies,

Bornhuetter-Ferguson

ultimate loss and LAE for each exposure

The Company maintains reserves equal to our estimated ultimate liability for losses and loss adjustment expense (LAE) for reported and unreported claims for our insurance and reinsurance businesses.

Because reserves are based on estimates of ultimate losses and LAE by underwriting or accident year, the Company uses a variety of statistical and actuarial techniques to monitor reserve adequacy over time, evaluate new information as it becomes known, and adjust reserves whenever an adjustment appears warranted.

The Company considers many factors when setting reserves including:

(1) exposure base and projected ultimate premium;

(2) expected loss ratios by product and class of business, which are developed collaboratively by underwriters and actuaries;

(3) actuarial methodologies and assumptions which analyze 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.

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 and has the responsibility for recommending and approving management’s best estimate.

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.

Actual loss and LAE ultimately paid may deviate, perhaps substantially, from such reserves.

Net income will be impacted in a period in which the change in estimated ultimate loss and LAE is recorded.

The detailed data required to evaluate ultimate losses for the Company’s insurance business is accumulated from its underwriting and claim systems.

Reserving for reinsurance requires evaluation of loss information received from ceding companies.

Ceding companies report losses in many forms depending on the type of contract and the agreed or contractual reporting requirements.

Generally, pro rata contracts require the submission of a monthly/quarterly account, which includes premium and loss activity for the period with corresponding reserves as established by the ceding company.

This information is recorded in the Company’s records.

For certain pro rata contracts, the Company may require a detailed loss report for claims that exceed a certain dollar threshold or relate to a particular type of loss.

Excess of loss and facultative contracts generally require individual loss reporting with precautionary notices provided when a loss reaches a significant percentage of the attachment point of the contract or when certain causes of loss or types of injury occur.

Experienced Claims staff handle individual loss reports and supporting claim information.

Based on evaluation of a claim, the Company may establish additional case reserves in addition to the case reserves reported by the ceding company.

To ensure ceding companies are submitting required and accurate data, Everest’s Underwriting, Claim, Reinsurance Accounting, and Internal Audit Departments perform various reviews of ceding companies, particularly larger ceding companies, including on-site audits.

The Company segments both reinsurance and insurance reserves into exposure groupings for actuarial analysis.

The Company assigns 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.

The Company periodically reviews its exposure groupings and may change groupings over time as business changes.

The Company currently uses approximately 200 exposure groupings to develop 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.

Casualty claims tend to take longer to be reported and settled and casualty lines are generally referred to as long tail lines.

Estimates of ultimate losses for shorter tail lines, with the exception of loss estimates for large catastrophic events, generally exhibit less volatility than those for the longer tail lines.

The Company uses a variety of actuarial methodologies, such as the expected loss ratio method, chain ladder methods, and Bornhuetter-Ferguson methods, supplemented by judgment where appropriate, to estimate ultimate loss and LAE for each exposure group.

Expected Loss Ratio Method:

The expected loss ratio

method uses earned premium

times an expected

ultimate losses for

a given underwriting or

accident year.

This method relies entirely

on expectation

consideration

appropriate for a more mature

age-to-ultimate

This method relies

actual paid or

reported losses

ultimate losses.

No other factors

other expectations

most appropriate

homogeneous, stable

experience where

past development

least appropriate for groups

which have changed significantly

over time or which are more volatile.

Bornhuetter-Ferguson

The Bornhuetter

a combination

premium, an a priori loss ratio,

and selected age-to-age development

factors and added to actual

reported (paid)

depends on the accuracy of the selected a priori loss

similar actuarial

faster reporting

of experience

greater confidence

exposure-based

approaches with analytically based judgments.

supplement the actuarially determined reserves

for uncertainty.

Carried reserves

reporting date

best estimate

unpaid losses

“rolled-forward”

accounting period

subsequent reserve

Analyzing the

process involves

Certain reserves,

including losses

from widespread

losses, cannot

using traditional

actuarial methods.

for separately

models, quantitative

and qualitative

and communications

from ceding companies and development patterns

for historically similar events,

where available.

and reinsurance

environmental

Environmental

of environmental

contamination

bodily injury

damage caused

property damage resulting from asbestos

or products containing asbestos.

The Company’s

reserves include

of the Company’s

ultimate liability

The Company’s

and reinsurance,

claims during

uncertainties

following table

summarizes incurred

losses with respect

basis for the periods indicated:

The expected loss ratio method uses earned premium times an expected loss ratio to calculate ultimate losses for a given underwriting or accident year.

This method relies entirely on expectation to project ultimate losses with no consideration given to actual losses.

As such, it may be appropriate for an immature underwriting or accident year where few, if any, losses have been reported or paid, but less appropriate for a more mature year.

Chain Ladder Method:

Chain ladder methods use a standard loss development triangle to project ultimate losses.

Age-to-age development factors are selected for each development period and combined to calculate age-to-ultimate development factors which are then applied to paid or reported losses to project ultimate losses.

This method relies entirely on actual paid or reported losses to project ultimate losses.

No other factors such as changes in pricing or other expectations are taken into account.

It is most appropriate for groups with homogeneous, stable experience where past development patterns are expected to continue in the future.

It is least appropriate for groups which have changed significantly over time or which are more volatile.

Bornhuetter-Ferguson Method:

The Bornhuetter-Ferguson method is a combination of the expected loss ratio method and the chain ladder method.

Ultimate losses are projected based partly on actual paid or reported losses and partly on expectation.

Incurred but not reported (IBNR) reserves are calculated using earned premium, an a priori loss ratio, and selected age-to-age development factors and added to actual reported (paid) losses to determine ultimate losses.

It is more responsive to actual reported or paid development than the expected loss ratio method but less responsive than the chain ladder method.

The reliability of the method depends on the accuracy of the selected a priori loss ratio.

Although the Company uses similar actuarial methods for both short tail and long tail lines, the faster reporting of experience for the short tail lines allows the Company to have greater confidence in its estimates of ultimate losses for short tail lines at an earlier stage than for long tail lines.

As a result, the Company utilizes, as well, exposure-based methods to estimate its ultimate losses for longer tail lines, especially for immature underwriting or accident years.

For both short and long tail lines, the Company supplements these general approaches with analytically based judgments.

Key actuarial assumptions contain no explicit provisions for reserve uncertainty nor does the Company supplement the actuarially determined reserves for uncertainty.

Carried reserves at each reporting date are the management’s best estimate of ultimate unpaid losses and LAE at that date.

The Company completes detailed reserve studies for each exposure group annually for both reinsurance and insurance operations.

The completed annual reserve studies are “rolled-forward” for each accounting period until the subsequent reserve study is completed.

Analyzing the roll-forward process involves comparing actual reported losses to expected losses based on the most recent reserve study.

The Company analyzes significant variances between actual and expected losses and post adjustments to its reserves as warranted.

Certain reserves, including losses from widespread catastrophic events and COVID-19 related losses, cannot be estimated using traditional actuarial methods.

These types of events are reserved for separately using a variety of statistical and actuarial techniques.

We estimate losses for these types of events based on information derived from catastrophe models, quantitative and qualitative exposure analyses, reports and communications from ceding companies and development patterns for historically similar events, where available.

The Company continues to receive claims under expired insurance and reinsurance contracts asserting injuries and/or damages relating to or resulting from environmental pollution and hazardous substances, including asbestos.

Environmental claims typically assert liability for (a) the mitigation or remediation of environmental contamination or (b) bodily injury or property damage caused by the release of hazardous substances into the land, air or water.

Asbestos claims typically assert liability for bodily injury from exposure to asbestos or for property damage resulting from asbestos or products containing asbestos.

The Company’s reserves include an estimate of the Company’s ultimate liability for A&E claims.

The Company’s A&E liabilities emanate from Mt.

McKinley Insurance Company’s, a former wholly owned subsidiary that was sold in 2015, direct insurance business and Everest Re’s assumed reinsurance business.

All of the contracts of insurance and reinsurance, under which the Company has received claims during the past three years, expired more than 20 years ago.

There are significant uncertainties surrounding the Company’s reserves for its A&E losses.

A&E exposures represent a separate exposure group for monitoring and evaluating reserve adequacy.

The following table summarizes incurred losses with respect to A&E reserves on both a gross and net of reinsurance basis for the periods indicated:

At December 31,

2 unchanged sentences

Incurred losses — 144 11

Paid losses ( 31 ) ( 42 ) ( 55 )

End of period reserves $ 247 $ 278 $ 175

1 unchanged sentence

Incurred losses — 138 —

Paid losses ( 25 ) ( 37 ) ( 42 )

End of period reserves $ 232 $ 257 $ 156

(Some amounts may not reconcile due to rounding.)

Insurance Company.

Per the retrocession

the Company retroceded

% of the liabilities associated

McKinley policies, which related

entirely to A&E business and had

been reinsured by Bermuda Re.

consideration

retrocession treaty,

retrocession treaty

million, equal to

the retrocession

retain liability for any

amounts exceeding the maximum liability

retroceded under the retrocession

On December 20, 2019, the retrocession

treaty was amended and

included a partial commutation.

As a result of

this amendment

commutation, gross

and correspondingly

reinsurance receivable

In addition, the maximum liability permitted to

be retroceded increased to

additional A&E

a comprehensive

actuarial reserving

In 2015, the Company sold Mt.

McKinley to Clearwater Insurance Company, a subsidiary of Fairfax Financial.

Concurrently with the closing, the Company entered into a retrocession treaty with an affiliate of Clearwater Insurance Company.

Per the retrocession treaty, the Company retroceded 100 % of the liabilities associated with certain Mt.

McKinley policies, which related entirely to A&E business and had been reinsured by Bermuda Re.

As consideration for entering into the retrocession treaty, Everest Re Bermuda transferred cash of $ 140 million, an amount equal to the net loss reserves as of the closing date.

The maximum liability retroceded under the retrocession treaty will be $ 440 million, equal to the retrocession payment plus $ 300 million.

The Company will retain liability for any amounts exceeding the maximum liability retroceded under the retrocession treaty.

On December 20, 2019, the retrocession treaty was amended and included a partial commutation.

As a result of this amendment and partial commutation, gross A&E reserves and correspondingly reinsurance receivable were reduced by $ 43 million.

In addition, the maximum liability permitted to be retroceded increased to $ 450 million.

In 2022, the Company posted additional A&E reserves of $ 138 million, following a comprehensive actuarial reserving review.

This increase in reserves brings the Company A&E position in line with the overall industry survival ratios.

Reinsurance Recoverables.

losses totaled

2022 and December

respectively.

%, was receivable

collateralized

America, Inc.

from Endurance

No other retrocessionaire accounted

for more than

% of our receivables.

Future Policy Benefit Reserve.

Activity in the reserve for future policy benefits

is summarized for the periods indicated:

At December 31,

(Dollars in thousands)

Balance at beginning of year

Liabilities assumed

Adjustments to reserves

Benefits paid in the current year

Balance at end of year

(Some amounts may not reconcile due to rounding.)

GAAP guidance regarding fair

value measurements address

how companies should measure fair value

measurements.

The valuation

the valuation

The level in the

hierarchy within

which a given fair

value measurement

falls is determined

being the lowest priority.

The levels in the hierarchy

are defined as follows:

the valuation

reflect unadjusted

identical assets or liabilities in an active market;

substantially the full term of the financial instrument;

Inputs to the valuation methodology are

unobservable and significant to the fair value

They use pricing

applications that

vary by asset

class and incorporate

available market

information and

maturity securities

basis the services

will apply available

information through

interest rate scenarios

for securities that have

prepayment features.

The investment

asset managers

prices received

reasonableness

methodologies,

reasonableness.

price validation

where financial

and risk-adjusted

At December 31, 2022, $

billion of fixed maturities, fair

value were fair valued

using unobservable inputs.

these fair values were substantiated

by valuations from independent third

The Company has procedures

maturities, fair value were fair

valued using unobservable inputs.

December 31, 2021

billion, respectively.

internally manages

collateralized

loan obligations

securities which

billion at December

December 31, 2021, respectively.

All prices for

these securities were

from publicly published sources or nationally

recognized pricing vendors.

exchanges are

categorized as

Level 2 due to

the added input of

a foreign exchange

rate to determine

The Company uses foreign currency

exchange rates

published by nationally recognized sources.

Fixed maturity

securities listed in

the tables have

been categorized

as Level 2, since

a particular security may

interest rate yield

curves and prices for similar fixed

maturity securities in terms of issuer,

maturity and seniority.

pricing services

currencies, and

where applicable,

are converted

dollars using

currency exchange

rates from nationally recognized

non-binding price

the securities

from brokers.

broker-dealers

providing the quotes.

The prices received from

reasonableness by the

third party asset

converted to U.S.

using currency exchange rates

from nationally recognized

The composition

on observable

prices, reported trades, quoted

prices for similar issuances or benchmark yields;

Obligations of U.S.

states and political

subdivisions are comprised

of state and municipal

bond issuances and

similar securities, benchmark yields and credit spreads;

Corporate securities

are primarily

comprised of U.S.

utility bond issuances

securities, benchmark yields and credit spreads;

mortgage-backed

prices, reported

trades, quoted

similar issuances

or benchmark yields

and cash flow

observable inputs such as prepayment speeds,

collateral performance and default

securities and

models with observable

credit spreads

applicable, converted to U.S.

dollars using an exchange rate

from a nationally recognized

Foreign corporate

securities are

global non-U.S.

bond issuances

and models with observable inputs

such as benchmark yields and credit

spreads and then, where applicable,

converted to U.S.

using an exchange rate

from a nationally recognized

The following

table presents

value measurement

and liabilities,

has recorded at fair value

as of the periods indicated:

Fair Value Measurement Using:

Quoted Prices

(Dollars in millions)

December 31, 2022

Fixed maturities, available for sale

Treasury securities and obligations of

government agencies and corporations

Obligations of U.S.

States and political subdivisions

Corporate securities

Asset-backed securities

Mortgage-backed securities

Agency residential

Non-agency residential

Foreign government securities

Foreign corporate securities

Total fixed maturities, available for sale

Equity securities, fair value

(Some amounts may not reconcile due to rounding.)

The following

table presents

value measurement

and liabilities,

has recorded at fair value

as of the periods indicated:

Fair Value Measurement Using:

Quoted Prices

(Dollars in millions)

December 31, 2021

Fixed maturities, available for sale

Treasury securities and obligations of

government agencies and corporations

Obligations of U.S.

States and political subdivisions

Corporate securities

Asset-backed securities

Mortgage-backed securities

Agency residential

Non-agency residential

Foreign government securities

Foreign corporate securities

Total fixed maturities, available for sale

Equity securities, fair value

(Some amounts may not reconcile due to rounding.)

balance sheets

as of December

2021, respectively,

included within

the fair value

tables as the assets are measured at

net asset value (“NAV”) as a pract

ical expedient to determine fair value.

The following

table presents

value measurements

using significant

inputs by asset type, for the periods indicated:

Total Fixed Maturities,

Available for Sale

December 31, 2022

December 31, 2021

(Dollars in millions)

Beginning balance fixed maturities

Total gains or (losses) (realized/unrealized)

Included in earnings

Included in other comprehensive income (loss)

Purchases, issuances and settlements

Transfers in and/or (out) of Level

Ending balance

The amount of total gains or losses for the period

included in earnings (or changes in net assets)

attributable to the change in unrealized gains

or losses relating to assets still held

at the reporting date

(Some amounts may not reconcile due to rounding.)

reclassification

of securities

of investment

categories for

the year ended

December 31, 2022

related mainly

to previously

designated Level

3 securities that

has reclassified

maturities – available

held to maturity”

these securities

longer included

value hierarchy

3 securities.

securities are

determined in a

similar manner as

the Company’s

fixed maturity

securities available

described above.

classified as Level 3 within the fair value hierarchy

as of December 31, 2022.

transfers of assets

in/(out) Level 3 during 2021.

Financial Instruments Disclosed, But Not Reported,

at Fair Value

Certain financial instruments

disclosed, but not

reported, at fair

value are excluded

from the fair

value hierarchy

tables above.

values of fixed maturity

securities held to maturity and senior notes

can be found within Notes

2 and 6, respectively.

Short-term investments

are stated at cost,

which approximates fair value.

CREDIT FACILITIES

corresponding authorization

from the applicable lender.

There is no guarantee the uncommitted

capacity will be

The following

table presents

connection with

these committed credit facilities

for the periods indicated:

Reinsurance recoverables for both paid and unpaid losses totaled $ 2.3 billion and $ 2.2 billion at December 31, 2023 and December 31, 2022, respectively.

At December 31, 2023, $ 413 million, or 18.3 %, was receivable from Mt.

Logan Re collateralized segregated accounts;

$ 266 million, or 11.8 %, was receivable from Munich Reinsurance America, Inc.

and $ 163 million, or 7.2 %, was recoverable from Endurance Reinsurance Corporation of America.

No other retrocessionaire accounted for more than 5 % of our receivables.

The Company utilizes reinsurance agreements to reduce its exposure to large claims and catastrophic loss occurrences.

These agreements provide for recovery from reinsurers of a portion of losses and LAE under certain circumstances without relieving the Company of its underlying obligations to the policyholders.

Losses and LAE incurred and premiums earned are reported after deduction for reinsurance.

In the event that one or more of the reinsurers were unable to meet their obligations under these reinsurance agreements, the Company would not realize the full value of the reinsurance recoverable balances.

The Company's procedures include carefully selecting its reinsurers, structuring agreements to provide collateral funds where necessary, and regularly monitoring the financial condition and ratings of its reinsurers.

Reinsurance recoverables include balances due from reinsurance companies and are presented net of an allowance for uncollectible reinsurance.

Reinsurance recoverables include an estimate of the amount of gross losses and loss adjustment expense reserves that may be ceded under the terms of the reinsurance agreements, including incurred but not reported unpaid losses.

The Company’s estimate of losses and loss adjustment expense reserves ceded to reinsurers is based on assumptions that are consistent with those used in establishing the gross reserves for amounts the Company owes to its claimants.

The Company estimates its ceded reinsurance receivable based on the terms of any applicable facultative and treaty reinsurance, including an estimate of how incurred but not reported losses will ultimately be ceded under reinsurance agreements.

Accordingly, the Company’s estimate of reinsurance recoverables is subject to similar risks and uncertainties as the estimate of the gross reserve for unpaid losses and loss adjustment expenses.

The Company may hold partial collateral, including letters of credit and funds held, under these agreements.

See also Note 1C, Note 3 and Note 8.

contractually

review committee

standing, financial

performance, management

and operational

including the expected liability payout

duration, and establishes limits tiered

by reinsurer credit rating.

enhancement, including

irrevocable letters

secured trusts,

funds held accounts

wide offsets.

See Note 1C for discussion of allowance on reinsurance

recoverables.

companies, including

are regulated

due to economic

and other risks.

regime substantively

equivalent to domestic

insurers or we hold

collateral to support

collection of reinsurance

there is limited history of losses from insurer

Years Ended December 31,

(Dollars in millions)

Written premiums:

Net written premiums

Premiums earned:

Net premiums earned

Incurred losses and LAE:

Net incurred losses and LAE

OTHER COMPREHENSIVE INCOME (LOSS)

The following

table presents

the components

of comprehensive

income (loss) in

the consolidated

operations for the periods indicated:

The following table presents the components of comprehensive income (loss) in the consolidated statements of operations for the periods indicated:

Years Ended December 31,

(Dollars in millions)

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

securities - non-credit related

Reclassification of net realized losses (gains) included in

net income (loss)

2023 2022 2021

(Dollars in millions) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax

URA(D) on securities - non-credit related $ 843 $ ( 101 ) $ 743 $ ( 2,332 ) $ 295 $ ( 2,037 ) $ ( 548 ) $ 59 $ ( 488 )

Reclassification of net realized losses (gains) included in net income (loss) 285 ( 41 ) 244 107 ( 18 ) 89 5 ( 2 ) 4

Foreign currency translation adjustments 64 ( 5 ) 59 ( 82 ) 5 ( 77 ) ( 64 ) 2 ( 62 )

Benefit plan actuarial net gain (loss) 19 ( 4 ) 15 18 ( 4 ) 15 22 ( 5 ) 17

Reclassification of benefit plan liability amortization

included in net income (loss)

Total other comprehensive income

The following table presents details

of the amounts reclassified from AOCI for

the periods indicated:

Affected line item within the statements

Reclassification of benefit plan liability amortization included in net income (loss) 2 — 2 3 ( 1 ) 2 8 ( 2 ) 6

Total other comprehensive income (loss) $ 1,214 $ ( 151 ) $ 1,063 $ ( 2,285 ) $ 277 $ ( 2,008 ) $ ( 577 ) $ 54 $ ( 523 )

The following table presents details of the amounts reclassified from AOCI for the periods indicated:

December 31, Affected line item within the statements of

operations and comprehensive income (loss)

AOCI component 2023 2022

operations and comprehensive

income (loss)

(Dollars in millions)

URA(D) on securities

Other net realized capital gains (losses)

URA(D) on securities $ 285 $ 107 Other net realized capital gains (losses)

( 41 ) ( 18 ) Income tax expense (benefit)

$ 244 $ 89 Net income (loss)

Benefit plan net gain (loss)

Other underwriting expenses

Benefit plan net gain (loss) $ 2 $ 3 Other underwriting expenses

— ( 1 ) Income tax expense (benefit)

$ 2 $ 2 Net income (loss)

The following

table presents

the components

of accumulated

other comprehensive

income (loss),

the consolidated balance sheets for the periods

The following table presents the components of accumulated other comprehensive income (loss), net of tax, in the consolidated balance sheets for the periods indicated:

(Dollars in millions) 2023 2022

10 unchanged sentences

(Some amounts may not reconcile due to rounding.)

SHARE-BASED COMPENSATION PLANS

The Company has a 2020 Stock Incentive Plan (“2020 Employee Plan”), a 2009 Non-Employee Director Stock Option and Restricted Stock Plan (“2009 Director Plan”) and a 2003 Non-Employee Director Equity Compensation Plan (“2003 Director Plan”).

The 2020 Employee Plan was established in June 2020.

Under the 2020 Employee Plan, 1,400,000 common shares have been authorized to be granted as non-qualified share options, share appreciation rights, restricted share awards or performance share unit awards to officers and key employees of the Company.

At December 31, 2023, there were 783,579 remaining shares available to be granted under the 2020 Employee Plan.

Through December 31, 2023, only non-qualified share options, restricted share awards and performance share unit awards had been granted under the employee plans.

Under the 2009 Director Plan, 37,439 common shares have been authorized to be granted as share options or restricted share awards to non-employee directors of the Company.

At December 31, 2023, there were 34,617 remaining shares available to be granted under the 2009 Director Plan.

Under the 2003 Director Plan, 500,000 common shares have been authorized to be granted as share options or share awards to non-employee directors of the Company.

At December 31, 2023 there were 271,245 remaining shares available to be granted under the 2003 Director Plan.

Options and restricted shares granted under the 2020 Employee Plan vest at the earliest of 20 % per year over five years or in accordance with any applicable employment agreement.

Options and restricted shares granted under the 2003 Director Plan generally vest at 33 % per year over three years , unless an alternate vesting period is authorized by the Board.

Options and restricted shares granted under the 2009 Director Plan will vest as provided in the award agreement.

All options are exercisable at fair market value of the stock at the date of grant and expire ten years after the date of grant.

Performance Share Unit awards granted under the 2020 Employee Plan will vest 100 % after three years .

The Performance Share Unit awards represent the right to receive between 0 and 1.75 shares of stock for each unit awarded depending upon performance in relation to certain metrics.

The performance share unit valuation will be based partly on growth in book value per share over the three year vesting period, compared to designated peer companies.

The remaining portion of the performance share valuation will be based upon operating return on equity for each of the separate operating years within the vesting period.

For share options, restricted shares and performance share units granted under the 2020 Employee Plan, the 2009 Director Plan and the 2003 Director Plan, share-based compensation expense recognized in the consolidated statements of operations and comprehensive income (loss) was $ 49 million, $ 45 million and $ 43 million for the years ended December 31, 2023, 2022 and 2021, respectively.

The corresponding income tax benefit recorded in the consolidated statements of operations and comprehensive income (loss) for share-based compensation was $ 7 million, $ 4 million and $ 8 million for the years ended December 31, 2023, 2022 and 2021, respectively.

For the year ended December 31, 2023, a total of 181,646 restricted shares were granted on February 23, 2023, May 18, 2023, September 8, 2023 and November 8, 2023, with a fair value of $ 382.385 , $ 372.9050 , $ 369.15 and $ 383.2200 per share, respectively.

Additionally, 14,975 performance share units were awarded on February 23, 2023, with a fair value of $ 382.3850 per unit.

No share options were granted during the year ended December 31, 2023.

For share options granted during previous years, the fair value per option was calculated on the date of the grant using the Black-Scholes option valuation model.

The Company recognizes, as an increase to additional paid-in capital, a realized income tax benefit from dividends, charged to retained earnings and paid to employees on equity classified non-vested equity shares.

In addition, the amount recognized in additional paid-in capital for the realized income tax benefit from dividends on those awards is included in the pool of excess tax benefits available to absorb tax deficiencies on share-based payment awards.

For the years ended December 31, 2023, 2022 and 2021, the Company recognized $ 0.5 million, $ 0.6 million and $ 0.6 million, respectively, of additional paid-in capital due to tax benefits from dividends on restricted shares.

A summary of the option activity under the Company’s shareholder approved plans as of December 31, 2022 and 2021, and changes during the year then ended is presented in the following tables:

(Aggregate Intrinsic Value in millions;

Shares in whole amounts) Shares Weighted-

Price/Share Weighted-

Term Aggregate

Outstanding at January 1, 2022 49,028 $ 88.52

Exercised 49,028 88.52

Forfeited/Cancelled/Expired — —

Outstanding at December 31, 2022 — — 0 $ —

Exercisable at December 31, 2022 — — 0 $ —

(Aggregate Intrinsic Value in millions;

Shares in whole amounts) Shares Weighted-

Price/Share Weighted-

Term Aggregate

Outstanding at January 1, 2021 116,871 $ 87.87

Exercised 67,843 87.39

Forfeited/Cancelled/Expired — —

Outstanding at December 31, 2021 49,028 88.52 0.2 $ 9

Exercisable at December 31, 2021 49,028 88.52 0.2 $ 9

There have been no stock options granted since 2012.

As of December 31, 2023, there were no stock options outstanding.

Any remaining stock options were exercised in 2022.

The aggregate intrinsic value (market price less exercise price) of options exercised during the years ended December 31, 2022 and 2021 was $ 10 million and $ 11 million, respectively.

The cash received from the exercised share options for the years ended December 31, 2022 and 2021 were $ 4 million and $ 6 million, respectively.

The tax benefit realized from the options exercised for the years ended December 31, 2022 and 2021 were $ 2 million and $ 3 million, respectively.

The following table summarizes the status of the Company’s restricted non-vested shares and changes for the periods indicated:

Years Ended December 31,

2023 2022 2021

Restricted (non-vested) Shares Shares Weighted-

Fair Value Shares Weighted-

Outstanding at January 1, 479,630 $ 268.82 496,094 $ 247.76 483,427 $ 246.60

Granted 181,646 382.01 203,598 300.38 213,901 243.51

Vested 155,110 261.60 162,579 246.41 158,735 238.67

Forfeited 44,629 297.23 57,483 262.28 42,499 247.02

Outstanding at December 31, 461,537 313.05 479,630 268.82 496,094 247.76

As of December 31, 2023, there was $ 108 million of total unrecognized compensation cost related to non-vested share-based compensation expense.

That cost is expected to be recognized over a weighted-average period of 3.3 years.

The total fair value of shares vested during the years ended December 31, 2023, 2022 and 2021, was $ 41 million, $ 40 million and $ 38 million, respectively.

The tax benefit realized from the shares vested for the years ended December 31, 2023, 2022 and 2021 were $ 11 million, $ 9 million and $ 8 million, respectively.

In addition to the 2020 Employee Plan, the 2009 Director Plan and the 2003 Director Plan, Group issued 447 common shares in 2023, 774 common shares in 2022 and 506 common shares in 2021 to the Company’s non-employee directors as compensation for their service as directors.

These issuances had aggregate values of $ 0.2 million, $ 0.2 million and $ 0.1 million in 2023, 2022 and 2021.

The Company acquired 56,832 , 69,833 and 79,308 common shares at a cost of $ 22 million, $ 21 million and $ 18 million in 2023, 2022 and 2021, respectively, from employees who chose to pay required withholding taxes and/or the exercise cost on option exercises or restricted share vestings by withholding shares.

The following table summarized the status of the Company’s non-vested performance share unit awards and changes for the period indicated:

Years Ended December 31,

2023 2022 2021

Performance Share Unit Awards Shares Weighted-

Fair Value Shares Weighted-

Outstanding at January 1, 54,861 $ — 50,495 $ — 38,891 $ —

Granted 14,975 382.39 18,340 301.54 22,205 242.24

Increase/(Decrease) on vesting units due to performance - 4,063 — 3,028 — ( 800 ) —

Vested 14,023 340.44 15,919 274.37 9,801 242.24

Forfeited 750 — 1,083 — 0 —

Outstanding at December 31, 51,000 — 54,861 — 50,495 —

The Company acquired 6,117 , 6,175 and 3,104 common shares at a cost of $ 2.1 million, $ 1.7 million and $ 0.8 million in 2023, 2022 and 2021, respectively, from employees who chose to pay required withholding taxes on performance shares units settlements by withholding shares.

EMPLOYEE BENEFIT PLANS

Defined Benefit Pension Plans.

non-qualified

employed prior to April

the Company computes

the benefits based on

average earnings

non-qualified

pension plan provided

compensating pension benefits

for participants whose

benefits have been curtailed

Company’s non-qualified defined

benefit pension plan may no longer accrue additional

service benefits.

contributions

Company’s contributions

to the defined benefit pension plans for the periods

The Company maintains both qualified and non-qualified defined benefit pension plans for its U.S.

employees employed prior to April 1, 2010.

Generally, the Company computes the benefits based on average earnings over a period prescribed by the plans and credited length of service.

The Company’s non-qualified defined benefit pension plan provided compensating pension benefits for participants whose benefits have been curtailed under the qualified plan due to Internal Revenue Code limitations.

Effective January 1, 2018, participants of the Company’s non-qualified defined benefit pension plan no longer accrue additional service benefits.

Although not required to make contributions under IRS regulations, the following table summarizes the Company’s contributions to the defined benefit pension plans for the periods indicated:

Years Ended December 31,

1 unchanged sentence

Company contributions $ 1 $ 6 $ 4

The following table summarizes the

Company’s pension expense

for the periods indicated:

The following table summarizes the Company’s pension expense for the periods indicated:

Years Ended December 31,

1 unchanged sentence

Pension expense $ 5 $ ( 2 ) $ 3

The following table summarizes the status of these defined benefit plans for U.S.

employees for the periods indicated:

Years Ended December 31,

2 unchanged sentences

Benefit obligation at beginning of year $ 291 $ 403

Service cost 5 9

Interest cost 14 10

Actuarial (gain)/loss 9 ( 115 )

Curtailment — —

Benefits paid ( 25 ) ( 15 )

8 unchanged sentences

Funded status at end of year $ 13 $ ( 6 )

(Some amounts may not reconcile due

to rounding.)

Amounts recognized in the consolidated

balance sheets for the periods indicated:

(Some amounts may not reconcile due to rounding.)

Amounts recognized in the consolidated balance sheets for the periods indicated:

At December 31,

5 unchanged sentences

(Some amounts may not reconcile due to rounding.)

Amounts not yet reflected in

net periodic benefit cost and included in accumulated

other comprehensive income

(loss) for the periods indicated:

Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income (loss) for the periods indicated:

At December 31,

3 unchanged sentences

(Some amounts may not reconcile due to rounding.)

Other changes in other comprehensive income (loss)

for the periods indicated are as

Other changes in other comprehensive income (loss) for the periods indicated are as follows:

Years Ended December 31,

8 unchanged sentences

Net periodic benefit cost for U.S.

employees included the following components

for the periods indicated:

employees included the following components for the periods indicated:

Years Ended December 31,

(Dollars in millions) 2023 2022 2021

Service cost $ 5 $ 9 $ 11

Interest cost 14 10 8

1 unchanged sentence

Amortization of actuarial loss from earlier periods 4 4 8

Settlement — 1 —

Net periodic benefit cost $ 5 $ ( 2 ) $ 3

4 unchanged sentences

(Some amounts may not reconcile due to rounding.)

discount rates

used to determine

2021 and 2020

%, respectively.

benefit cost for

2022, 2021 and 2020

The expected long-term

rate of return

on plan assets for

2021 and 2020 was

% respectively.

obligation for 2022, 2021 and 2020 were

%, respectively.

The following table summarizes the

accumulated benefit obligation for

the periods indicated:

The weighted average discount rates used to determine net periodic benefit cost for 2023, 2022 and 2021 were 5.25 %, 2.86 % and 2.55 %, respectively.

The rate of compensation increase used to determine the net periodic benefit cost for 2023, 2022 and 2021 was 4.00 %.

The expected long-term rate of return on plan assets for 2023, 2022 and 2021 was 7.00 %, 6.75 % and 7.00 % respectively.

The weighted average discount rates used to determine the actuarial present value of the projected benefit obligation for 2023, 2022 and 2021 were 5.00 %, 5.25 % and 2.86 %, respectively.

The following table summarizes the accumulated benefit obligation for the periods indicated:

At December 31,

2 unchanged sentences

Non-qualified Plan 6 6

Total $ 269 $ 264

(Some amounts may not reconcile due to rounding.)

The following

table displays

with projected

benefit obligations

The following table displays the plans with projected benefit obligations in excess of plan assets for the periods indicated:

At December 31,

6 unchanged sentences

Fair value of plan assets — —

periods indicated:

The following table displays the plans with accumulated benefit obligations in excess of plan assets for the periods indicated:

At December 31,

6 unchanged sentences

Fair value of plan assets — —

The following table displays

the expected benefit payments in

the periods indicated:

The following table displays the expected benefit payments in the periods indicated:

(Dollars in millions)

underlying assets

respectively.

Due to the long term nature

of the plan, the target

asset allocation has historically

% equities and

The following

tables present

value measurement

the qualified

periods indicated:

Next 5 years 99

Plan assets consist primarily of shares in investment trusts with 75 %, 24 % and 1 % of the underlying assets consisting of equity securities, fixed maturities and cash, respectively.

The Company manages the qualified plan investments for U.S.

The assets in the plan consist of debt and equity mutual funds.

Due to the long-term nature of the plan, the target asset allocation has historically been 70 % equities and 30 % bonds.

The following tables present the fair value measurement levels for the qualified plan assets at fair value for the periods indicated:

Fair Value Measurement Using:

Quoted Prices

(Dollars in millions)

December 31, 2022

(Dollars in millions) December 31, 2023 Quoted Prices

(Level 1) Significant

(Level 2) Significant

Short-term investments, which approximates fair value (a) $ 2 $ 2 $ — $ —

1 unchanged sentence

Fixed income (b) 73 73 — —

Equities (c) 232 232 — —

Total $ 308 $ 308 $ — $ —

(Some amounts may not reconcile due to rounding.)

This category includes high quality, short-term

money market instruments, which are issued and payable in

This category includes fixed income funds, which invest in

investment grade securities of corporations, governments

and government agencies with approximately

securities and

% in international securities.

This category includes funds, which invest in small, mid and multi-cap equity securities

including common stocks, securities convertible into common stock

and securities with

common stock characteristics, such as rights and warrants, with

approximately

% in international equities.

(a) This category includes high quality, short-term money market instruments, which are issued and payable in U.S.

(b) This category includes fixed income funds, which invest in investment grade securities of corporations, governments and government agencies with approximately 90 % in U.S.

securities and 10 % in international securities.

(c) This category includes funds, which invest in small, mid and multi-cap equity securities including common stocks, securities convertible into common stock and securities with common stock characteristics, such as rights and warrants, with approximately 100 % in U.S.

Fair Value Measurement Using:

(Dollars in millions) December 31, 2022 Fair Value Measurement Using:

Quoted Prices

(Dollars in millions)

December 31, 2021

(Level 1) Significant

(Level 2) Significant

Short-term investments, which approximates fair value (a) $ 4 $ 4 $ — $ —

1 unchanged sentence

Fixed income (b) 68 68 — —

Equities (c) 211 211 — —

Total $ 283 $ 283 $ — $ —

(Some amounts may not reconcile due to rounding.)

This category includes high quality, short-term

money market instruments, which are issued and payable in

This category includes fixed income funds, which invest in

investment grade securities of corporations, governments

and government agencies with approximately

securities and

% in international securities.

This category includes funds, which invest in small, mid and multi-cap equity securities

including common stocks, securities convertible into common stock

and securities with

common stock characteristics, such as rights and warrants, with

approximately

% in international equities.

In addition, $

million and $

million of investments

which were recorded

as part of the

qualified plan assets

respectively,

assets are valued using the NAV

practical expedient guidance within ASU

contributions

qualified pension

ended December 31,

(a) This category includes high quality, short-term money market instruments, which are issued and payable in U.S.

(b) This category includes fixed income funds, which invest in investment grade securities of corporations, governments and government agencies with approximately 70 % in U.S.

securities and 30 % in international securities.

equities and 50 % in international equities.

In addition, $ 2 million of investments which were recorded as part of the qualified plan assets at December 31, 2022 are not included within the fair value hierarchy tables as the assets are valued using the NAV practical expedient guidance within ASU 2015-07.

No contributions were made to the qualified pension benefit plan for the years ended December 31, 2023 and 2022.

Defined Contribution Plans.

non-qualified

“Non-Qualified Savings

respectively) covering

Under the plans,

participants’

The Non-Qualified

Plan provides

plan benefits

for participants

April 1, 2010,

will contribute

contributions

million and $

million for the years ended December 31,

2022, 2021 and 2020, respectively.

international

The Company contributes

various amounts based

age and/or years

In the current

the contributions

the international

contributions

incurred expenses

ended December

31, 2022, 2021 and 2020, respectively.

The Company also maintains both qualified and non-qualified defined contribution plans (“Savings Plan” and “Non-Qualified Savings Plan”, respectively) covering U.S.

Under the plans, the Company contributes up to a maximum 3 % of the participants’ compensation based on the contribution percentage of the employee.

The Non-Qualified Savings Plan provides compensating savings plan benefits for participants whose benefits have been curtailed under the Savings Plan due to Internal Revenue Code limitations.

In addition, effective for new hires (and rehires) on or after April 1, 2010, the Company will contribute between 3 % and 8 % of an employee’s earnings for each payroll period based on the employee’s age.

These contributions will be 100 % vested after three years .

The Company incurred expenses related to these plans of $ 22 million, $ 18 million and $ 15 million for the years ended December 31, 2023, 2022 and 2021, respectively.

In addition, the Company maintains several defined contribution pension plans covering non-U.S.

Each international office maintains a separate plan for the non-U.S.

employees working in that location.

The Company contributes various amounts based on salary, age and/or years of service.

In the current year, the contributions as a percentage of salary for the international offices ranged from 5.1 % to 29.3 %.

The contributions are generally used to purchase pension benefits from local insurance providers.

The Company incurred expenses related to these plans of $ 6 million, $ 4 million and $ 3 million for the years ended December 31, 2023, 2022 and 2021, respectively.

Post-Retirement Plan.

Retiree Health

employees employed

April 1, 2010.

anticipates that

employees will

become eligible for

these benefits

post-retirement

benefit expense

the employee’s

decrease gradually

2021 and 2020, respectively.

The following table summarizes the

status of this plan for the periods indicated:

The Company sponsors a Retiree Health Plan for employees employed prior to April 1, 2010.

This plan provides healthcare benefits for eligible retired employees (and their eligible dependents), who have elected coverage.

The Company anticipates that most covered employees will become eligible for these benefits if they retire while working for the Company.

The cost of these benefits is shared with the retiree.

The Company accrues the post-retirement benefit expense during the period of the employee’s service.

A medical cost trend rate of 6.75 % in 2023 was assumed to decrease gradually to 4.75 % in 2030 and then remain at that level.

The Company incurred expenses of $( 1 ) million, $ 1 million and $ 1 million for the years ended December 31, 2023, 2022 and 2021, respectively.

The following table summarizes the status of this plan for the periods indicated:

At December 31,

2 unchanged sentences

Benefit obligation at beginning of year $ 21 $ 31

Service cost 1 1

Interest cost 1 1

Amendments — —

Actuarial (gain)/loss ( 1 ) ( 10 )

7 unchanged sentences

Funded status at end of year $ ( 22 ) $ ( 21 )

Amounts recognized in the consolidated

balance sheets for the periods indicated:

Amounts recognized in the consolidated balance sheets for the periods indicated:

At December 31,

4 unchanged sentences

(Some amounts may not reconcile due to rounding.)

Amounts not yet reflected in

net periodic benefit cost and included in accumulated

other comprehensive income

(loss) for the periods indicated:

Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income (loss) for the periods indicated:

At December 31,

3 unchanged sentences

Accumulated other comprehensive income (loss) $ 12 $ 14

Other changes in other comprehensive income (loss)

for the periods indicated are as

Other changes in other comprehensive income (loss) for the periods indicated are as follows:

Years Ended December 31,

7 unchanged sentences

Other comprehensive income (loss) at December 31, current year $ 12 $ 14

Net periodic benefit cost included the following

components for the periods indicated:

Net periodic benefit cost included the following components for the periods indicated:

Years Ended December 31,

(Dollars in millions) 2023 2022 2021

Service cost $ 1 $ 1 $ 1

Interest cost 1 1 1

7 unchanged sentences

(Some amounts may not reconcile due to rounding.)

discount rates

used to determine

2021 and 2020

%, respectively.

obligation at year end 2022, 2021 and 2020 were

%, respectively.

The following table displays

the expected benefit payments

in the years indicated:

(Dollars in millions)

DIVIDEND RESTRICTIONS AND STATUTORY

FINANCIAL INFORMATION

restrictions,

dividends that

entities must

These regulatory

restrictions are based upon statut

ory capital as opposed to GAAP basis equity or net

Group and one of its

subsidiaries,

(“BSCR”) administered

Commissioners

the aggregate

Dividend Restrictions.

Under Bermuda

prohibited from

declaring or paying

if such payment

operating expenses is dependent

upon dividends from its subsidiaries.

Under Bermuda law,

Bermuda Re is

prohibited from

declaring or making payment

of a dividend if

it fails to meet

minimum liquidity

long-term insurer,

declare or pay a

dividend to anyone

who is not a policyholder unless,

after payment of the

dividend, the value of

long term business by at least the $

million minimum solvency margin.

Prior approval

if Bermuda Re’s

dividend payments

end total statutory capital

financial statements

in conformity

accounting principles

respectively.

December 31, 2022, 2021 and 2020, respectively.

provides that

company which

holding company

and is domiciled in the state shall

not pay dividends without giving prior notice to

the Insurance Commissioner of

distributions

twelve months

exceeds the greater

% of statutory surplus

or (2) net income, not including

realized capital gains,

dividends in 2023 without the need for prior regulatory

Prescribed statutory

NAIC Accounting

Practices and

Procedures Manual.

and statutory

December 31, 2022

respectively.

The statutory

dividends, loans

The insurance

Delaware, where

Holdings’ direct

insurance subsidiaries

are domiciled, require

approval before

subsidiaries can pay dividends or make

loans or advances to Holdings that exceed

certain statutory thresholds.

Capital Restrictions.

BSCR administered

No regulatory

each insurer,

enhanced capital requirement.

RBC developed

level risk-based

total adjusted

the authorized

level capital, no action is required by

The regulatory targeted

capital and the actual statutory

capital for Bermuda Re and Everest

Re were as follows:

At December 31,

The weighted average discount rates used to determine net periodic benefit cost for 2023, 2022 and 2021 were 5.25 %, 2.86 % and 2.55 %, respectively.

The weighted average discount rates used to determine the actuarial present value of the projected benefit obligation at year end 2023, 2022 and 2021 were 5.00 %, 5.25 % and 2.86 %, respectively.

The following table displays the expected benefit payments in the years indicated:

(Dollars in millions)

Regulatory targeted capital

Actual capital

Regulatory targeted capital represents

the target capital level from the applicable year's BSCR calculation.

Regulatory targeted capital represents

% of the RBC authorized control level calculation for the applicable

The 2022 BSCR calculation is not yet due to be completed;

the Company anticipates that Bermuda Re's December 31, 2022 actual capital

will exceed the targeted capital

COMMITMENTS AND CONTINGENCIES

under insurance

and reinsurance

rights under an agreement or to

collect funds owing to it.

In other matters, the Company

is resisting attempts by

resolved through

both informal

means, including

negotiated resolution,

arbitration and

all such matters,

the Company believes

that its positions

are legally and

commercially reasonable.

when determining

loss adjustment

not a party to any other material litigation

or arbitration.

additional unaffiliated

the respective

annuity contract.

contingently liable for the periods

At December 31,

(Dollars in thousands)

The Prudential

Unaffiliated life insurance company

SHARE-BASED COMPENSATION

Compensation Plan (“2003 Director Plan”).

as non-qualified

share options,

share appreciation

or performance

31, 2022, there were

remaining shares

under the 2020 Employee

non-qualified

awards had been

granted under the employee

Under the 2009 Director

common shares have

shares available

non-employee directors

remaining shares available

to be granted under the 2003 Director

and restricted

2020 Employee

accordance with

any applicable

employment agreement.

restricted shares

under the 2003

Director Plan

generally vest

alternate vesting

grant and expire

after the date of grant.

represent the

receive between

depending upon

performance in

certain metrics.

The performance

vesting period,

peer companies.

The remaining portion of

the performance share

valuation will be based

upon operating return

on equity for each of the separate operating

years within the vesting period.

of operations

comprehensive

respectively.

corresponding

benefit recorded in

the consolidated statements

of operations and

comprehensive income (loss)

for share-based

compensation was

million and $

million for the

December 31, 2022,

2021 and 2020,

respectively.

ended December 31,

2022, a total

restricted shares

respectively.

Additionally,

value per option was calculated on the

date of the grant using the Black-Scholes

option valuation model.

dividends, charged

earnings and paid

to employees on

equity classified non-vested

equity shares.

addition, the

amount recognized

in additional

paid-in capital

on those awards

is included in the pool of

benefits available

to absorb tax

deficiencies on share-based

million and $

million, respectively,

of additional paid-in capital due to tax

benefits from dividends

on restricted shares.

2021 and 2020, and changes during the year then ended is presented

in the following tables:

(Aggregate Intrinsic Value

Outstanding at January 1, 2022

Forfeited/Cancelled/Expired

Outstanding at December 31, 2022

Exercisable at December 31, 2022

(Aggregate Intrinsic Value in millions;

Shares in whole amounts)

Outstanding at January 1, 2021

Forfeited/Cancelled/Expired

Outstanding at December 31, 2021

Exercisable at December 31, 2021

(Aggregate Intrinsic Value in millions;

Shares in whole amounts)

Outstanding at January 1, 2020

Forfeited/Cancelled/Expired

Outstanding at December 31, 2020

Exercisable at December 31, 2020

share options

December 31, 2022,

2021 and 2020

million and $

million, respectively.

cash received from

the exercised

share options for

the years ended

December 31, 2022, 2021

and 2020 were

million and $

million, respectively.

benefit realized

options exercised

ended December 31, 2022, 2021 and 2020 were $

million and $

million, respectively.

Years Ended December 31,

Restricted (non-vested) Shares

Outstanding at January 1,

Outstanding at December 31,

As of December

million of total

unrecognized compensation

to non-vested

weighted-average

vested during

the years ended

December 31, 2022,

2021 and 2020,

respectively.

years ended December 31, 2022, 2021 and 2020 were

million and $

million, respectively.

common shares

the Company’s

employee directors

as compensation for

their service as directors.

These issuances had aggregate

million and $

million in 2022, 2021 and 2020.

common shares

respectively,

and/or the exercise cost

on option exercises or restricted

share vestings by withholding shares.

changes for the period indicated:

Next 5 years 7

With the assent of the governor on December 27, 2023, the Bermuda Corporate Income Tax Act of 2023 (“The 2023 Act”) became law.

Beginning in 2025, a 15% corporate income tax will be applicable to Bermuda businesses that are part of multinational enterprise groups with annual revenue of €750M or more.

Group’s Bermuda entities will be subject to the new corporate income tax.

The Company has evaluated The 2023 Act and has recorded $ 578 million of net deferred income tax benefits in 2023 related to it.

The net deferred income tax benefits relate primarily to a default provision in the law which allows for what is called an “Economic Transition Adjustment” (“ETA”).

The ETA allows companies to establish deferred tax assets or liabilities related to the revaluation of intangible assets, excluding goodwill, and their

other assets and liabilities, based on fair value as of September 30, 2023.

The deferred tax assets or liabilities are then amortized in accordance with The 2023 Act.

All of the income of Group's non-Bermuda subsidiaries is subject to the applicable federal, foreign, state, and local taxes on corporations.

Additionally, the income of the foreign branches of the Company's insurance operating companies is subject to various rates of income tax.

subsidiaries conduct business in and are subject to taxation in the U.S.

Should the U.S.

subsidiaries distribute current or accumulated earnings and profits in the form of dividends or otherwise, the Company would be subject to an accrual of 5 % U.S.

withholding tax.

Currently, however, no withholding tax has been accrued with respect to such un-remitted earnings as management has no intention of remitting them.

The cumulative amount that would be subject to withholding tax, if distributed, is not practicable to compute.

The provision for income taxes in the consolidated statement of operations and comprehensive income (loss) has been determined in accordance with the individual income of each entity and the respective applicable tax laws.

The provision reflects the permanent differences between financial and taxable income relevant to each entity.

On August 16, 2022, the Inflation Reduction Act of 2022 (“IRA”) was enacted.

We have evaluated the tax provisions of the IRA, the most significant of which are the corporate alternative minimum tax and the share repurchase excise tax and do not expect the legislation to have a material impact on our results of operations.

The significant components of the provision are as follows for the periods indicated:

Years Ended December 31,

Performance Share Unit Awards

Outstanding at January 1,

Increase/(Decrease) on vesting units

due to performance

Outstanding at December 31,

respectively,

from employees

withholding taxes

performance shares units settlements

by withholding shares.

SEGMENT REPORTING

The Reinsurance

writes worldwide

and specialty

and facultative

Ireland offices,

through branches

and Switzerland.

The Insurance

writes property

Ireland, and branches located

in the Netherlands, France, Germany and Spain.

These segments are

managed independently,

with corporate

guidelines with respect

to pricing, risk

upon their underwriting results.

commission and brokerage

expenses and other

underwriting expenses.

The Company measures

its underwriting

results using

particular loss,

commission and

underwriting expense

ratios, which,

respectively,

divide incurred

losses, commissions

and brokerage

underwriting expenses

Company does not

review and evaluate

the financial results

of its operating

segments based upon

balance sheet

The following tables present the underwriting

results for the operating segments

for the periods indicated:

Year Ended December 31, 2022

(Dollars in millions) 2023 2022 2021

Gross written premiums

Net written premiums

Premiums earned

Incurred losses and LAE

Commission and brokerage

Other underwriting expenses

Underwriting gain (loss)

Net investment income

Net realized capital gains (losses)

Corporate expenses

Interest, fee and bond issue cost amortization expense

Other income (expense)

Income (loss) before taxes

Year Ended December 31, 2021

(Dollars in millions)

Gross written premiums

Net written premiums

Premiums earned

Incurred losses and LAE

Commission and brokerage

Other underwriting expenses

Current tax expense (benefit):

$ 284 $ 76 $ 124

Total current tax expense (benefit) 291 81 126

Deferred tax expense (benefit):

( 76 ) ( 90 ) 38

Total deferred tax expense (benefit) ( 654 ) ( 90 ) 41

Total income tax expense (benefit) $ ( 363 ) $ ( 9 ) $ 167

(Some amounts may not reconcile due to rounding.)

The weighted average expected tax provision has been calculated using the pre-tax income (loss) in each jurisdiction multiplied by that jurisdiction's applicable statutory tax rate.

Reconciliation of the difference between the provision for income taxes and the expected tax provision at the weighted average tax rate for the periods indicated is provided below:

Years Ended December 31,

2023 2022 2021

(Dollars in millions) U.S.

Underwriting gain (loss) $ 533 $ 686 $ ( 81 ) $ 558 $ ( 83 ) $ 307

1 unchanged sentence

Net realized capital gains (losses) ( 190 ) ( 86 ) ( 426 ) ( 29 ) 266 ( 8 )

Net derivative gain (loss) — 1 — — — 3

Corporate expenses ( 18 ) ( 55 ) ( 26 ) ( 35 ) ( 33 ) ( 34 )

1 unchanged sentence

Other income (expense) ( 13 ) ( 3 ) ( 6 ) ( 96 ) 23 11

Income (loss) before taxes

Year Ended December 31, 2020

Pre-tax income (loss) $ 1,132 $ 1,022 $ ( 32 ) $ 620 $ 811 $ 735

Expected tax provision at the applicable statutory rate(s) 238 26 ( 9 ) — 170 14

Increase (decrease) in taxes resulting from:

Tax exempt income ( 3 ) — ( 4 ) — ( 4 ) —

Dividend received deduction ( 2 ) — ( 3 ) — ( 1 ) —

Proration 1 — 1 — 1 —

Affiliated preferred stock dividends 7 — 7 — 7 —

Creditable foreign premium tax ( 14 ) — ( 11 ) — ( 13 ) —

Tax audit settlement — — — — — —

Share-based compensation tax benefits formerly in APIC ( 3 ) — ( 3 ) — ( 2 ) —

Valuation allowance — ( 13 ) — 5 — ( 10 )

Bermuda corporate income tax — ( 578 ) — 5 — —

Insurance company-owned life insurance ( 13 ) — ( 1 ) — — —

Other ( 3 ) ( 6 ) 6 — 3 1

Total income tax provision $ 208 $ ( 571 ) $ ( 14 ) $ 5 $ 161 $ 5

(Some amounts may not reconcile due to rounding.)

At December 31, 2023, 2022 and 2021, the Company had no uncertain tax positions.

The Company’s 2014 through 2018 U.S.

Federal tax returns are under audit by the IRS.

Over several years, the Company had received and responded to a substantial number of Information Document Requests (“IDRs”).

In 2023, the IRS issued several insignificant Notice(s) of Proposed Adjustment.

The Company had filed amended tax returns requesting refunds for 2015 and 2016 for $ 2 million and $ 5 million, respectively.

In the fall of 2023, the IRS issued a final Revenue Agent Report (“RAR”) which is under review by the Company.

We have asked for and received an extension from the IRS to complete our review.

Note that the IRS requested, and we have signed, an extension of the audit to June 30, 2025.

For tax year 2019, the Statute of Limitations has expired and, thus, the Federal income tax return for the year is no longer subject to IRS examination except to the extent the Company files an amended return.

Tax years 2020, 2021 and 2022 are open for examination by the U.S.

Federal income tax jurisdiction.

Deferred Income taxes reflect the tax effect of the temporary differences between the value of assets and liabilities for financial statement purposes and such values are measured by the U.S.

tax laws and regulations.

The principal items making up the net deferred income tax assets/(liabilities) are as follows for the periods indicated:

Years Ended December 31,

(Dollars in millions) 2023 2022

Gross written premiums

Net written premiums

Premiums earned

Incurred losses and LAE

Commission and brokerage

Other underwriting expenses

Underwriting gain (loss)

Net investment income

Net realized capital gains (losses)

Corporate expenses

Interest, fee and bond issue cost amortization expense

Other income (expense)

Income (loss) before taxes

internationally.

not identifiable

the Company’s

financial records.

Based on gross written

premium, the table below

presents the largest

other than the U.S., in which the Company writes business,

for the periods indicated:

Year Ended December 31,

Deferred tax assets:

Bermuda intangible asset $ 536 $ —

Loss reserves 270 154

Unearned premium reserves 143 114

Net unrealized investment losses 67 218

Depreciation 44 —

Lease liability 27 29

Net operating loss carryforward 18 28

Net Unrealized foreign currency losses 15 24

Investment impairments 12 12

Equity compensation 8 8

Net unrealized losses on benefit plans 4 9

Uncollectible reinsurance reserves 3 3

Foreign tax credits — 3

Other assets 22 10

Total deferred tax assets 1,169 611

Deferred tax liabilities:

Deferred acquisition costs 139 105

Net fair value income 74 7

Partnership investments 49 56

Right of use asset 23 25

Benefit plan asset 3 3

Depreciation — 16

Other liabilities 11 8

Total deferred tax liabilities 299 220

Net deferred tax assets 870 392

Valuation allowance ( 15 ) ( 25 )

Total net deferred tax assets/(liabilities) $ 855 $ 367

(Some amounts may not reconcile due to rounding.)

At December 31, 2023 and 2022, the Company had $ 15 million and $ 25 million of Valuation Allowance (“VA”), respectively.

The VA is a result of our conclusion under US GAAP accounting principles that the UK, Netherlands, Ireland, Switzerland, France, Germany, Singapore, Mexico, and U.S.

jurisdictions could not demonstrate that it was more likely than not that the related deferred tax assets will be realized.

This was primarily due to factors such as cumulative operating losses in recent years, cumulative capital losses and, therefore, an inability to demonstrate overall profitability within the specific jurisdiction.

During the year ended December 31, 2023, the Company recorded an overall decrease in its VA of $ 10 million.

Tax effected UK Net Operating Losses (“NOLs”) of $ 7 million do not expire.

Tax effected Irish NOLs of $ 2 million do not expire.

Tax effected Swiss NOLs of $ 2 million begin to expire in 2028.

The remaining tax effected NOLs of $ 7 million arose in various jurisdictions and begin expiring in 2027.

Note that not all NOLs had a VA up against them.

At December 31, 2023, and 2022, the Company had $ 0 million and $ 3 million respectively of foreign tax credit (“FTC”) carryforwards, all related to the branch basket.

The branch basket FTCs begin to expire in 2030.

At December 31, 2023, $ 67 million of the Company’s deferred tax asset relates primarily to unrealized losses on available for sale fixed maturity securities.

The unrealized losses on available for sale fixed maturity securities were a result of market conditions, including rising interest rates.

Ultimate realization of the deferred tax asset depends on the Company’s ability and intent to hold the available for sale securities until they recover their value or mature.

December 31, 2023, based on all the available evidence, the Company has concluded that the deferred tax asset related to the unrealized losses on the available for sale fixed maturity portfolio are, more likely than not, expected to be realized.

The Company follows ASU 2016-09 regarding the treatment of the tax effects of share-based compensation transactions.

ASU 2016-09 required that the income tax effects of restricted stock vestings and stock option exercises resulting from the change in value of share-based compensation awards between the grant date and settlement (vesting/exercise) date be recorded as part of income tax expense (benefit) within the consolidated statements of operations and comprehensive income (loss).

Per ASU 2016-09, the Company recorded excess tax benefits of $ 2 million, $ 2 million and $ 2 million related to restricted stock vestings and stock option exercises as part of income tax expense (benefit) within the consolidated statements of operations and comprehensive income (loss) in 2023, 2022 and, 2021, respectively.

ASU 2016-09 does not impact the accounting treatment of tax benefits related to dividends on restricted stock.

The tax benefits related to the payment of dividends on restricted stock have been recorded as part of additional paid-in capital in the shareholders' equity section of the consolidated balance sheets in all years.

The tax benefits related to the payment of dividends on restricted stock were $ 0.6 million , $ 0.6 million and $ 0.6 million in 2023, 2022 and 2021, respectively.

DIVIDEND RESTRICTIONS AND STATUTORY FINANCIAL INFORMATION

Group and its operating subsidiaries are subject to various regulatory restrictions, including the amount of dividends that may be paid and the level of capital that the operating entities must maintain.

These regulatory restrictions are based upon statutory capital as opposed to GAAP basis equity or net assets.

Group and one of its primary operating subsidiaries, Bermuda Re, are regulated by Bermuda law and its other primary operating subsidiary, Everest Re, is regulated by Delaware law.

Bermuda Re is subject to the Bermuda Solvency Capital Requirement (“BSCR”) administered by the Bermuda Monetary Authority (“BMA”) and Everest Re is subject to the RBC developed by the NAIC.

These models represent the aggregate regulatory restrictions on net assets and statutory capital and surplus.

Dividend Restrictions.

Under Bermuda law, Group is prohibited from declaring or paying a dividend if such payment would reduce the realizable value of its assets to an amount less than the aggregate value of its liabilities and its issued share capital and share premium (additional paid-in capital) accounts.

Group’s ability to pay dividends and its operating expenses is dependent upon dividends from its subsidiaries.

Under Bermuda law, Bermuda Re is prohibited from declaring or making payment of a dividend if it fails to meet its minimum solvency margin or minimum liquidity ratio.

As a long-term insurer, Bermuda Re is 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 $ 0.3 million minimum solvency margin.

Prior approval of the BMA is required if Bermuda Re’s dividend payments would exceed 25 % of their prior year-end total statutory capital and surplus.

Bermuda Re prepares its statutory financial statements in conformity with the accounting principles set forth in Bermuda in The Insurance Act 1978, amendments thereto and related regulations.

The statutory capital and surplus of Bermuda Re was $ 3.7 billion and $ 2.8 billion at December 31, 2023 and 2022, respectively.

The statutory net income of Bermuda Re was $ 1.5 billion, $ 603 million and $ 681 million for the years ended December 31, 2023, 2022 and 2021, respectively.

Delaware law provides that an insurance company which is a member of an insurance holding company system and is domiciled in the state shall not pay dividends without giving prior notice to the Insurance Commissioner of Delaware and may not pay dividends without the approval of the Insurance Commissioner if the value of the proposed dividend, together with all other dividends and distributions made in the preceding twelve months , exceeds the greater of (1) 10 % of statutory surplus or (2) net income, not including realized capital gains, each as reported in the prior year’s statutory annual statement.

In addition, no dividend may be paid in excess of unassigned earned surplus.

Accordingly, as of December 31, 2023, 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 $ 877 million.

Statutory Financial Information.

Everest Re prepares its statutory financial statements in accordance with accounting practices prescribed or permitted by the NAIC and the Delaware Insurance Department.

Prescribed statutory accounting practices are set forth in the NAIC Accounting Practices and Procedures Manual.

The capital and statutory surplus of Everest Re was $ 7.0 billion and $ 5.6 billion at December 31, 2023 and 2022, respectively.

The statutory net income of Everest Re was $ 877 million, $ 294 million and $ 336 million for the years ended December 31, 2023, 2022 and 2021.

There are certain regulatory and contractual restrictions on the ability of Holdings’ operating subsidiaries to transfer funds to Holdings in the form of cash dividends, loans or advances.

The insurance laws of the State of Delaware, where Holdings’ direct insurance subsidiaries are domiciled, require regulatory approval before those subsidiaries can pay dividends or make loans or advances to Holdings that exceed certain statutory thresholds.

Capital Restrictions.

In Bermuda, Bermuda Re is subject to the BSCR administered by the BMA.

No regulatory action is taken if an insurer’s capital and surplus is equal to or in excess of their enhanced capital requirement determined by the BSCR model.

In addition, the BMA has established a target capital level for each insurer, which is 120% of the enhanced capital requirement.

In the United States, Everest Re is subject to the RBC developed by the NAIC which determines an authorized control level risk-based capital.

As long as the total adjusted capital is 200% or more of the authorized control level capital, no action is required by the Company.

The regulatory targeted capital and the actual statutory capital for Bermuda Re and Everest Re were as follows:

Bermuda Re (1)

Everest Re (2)

At December 31, At December 31,

(Dollars in millions) 2023⁽³⁾ 2022 2023 2022

United Kingdom gross written premium

Approximately

respectively,

were sourced through the Company’s

largest intermediary.

Regulatory targeted capital $ — $ 2,217 $ 4,242 $ 3,353

Actual capital $ 3,722 $ 2,759 $ 6,963 $ 5,553

(1) Regulatory targeted capital represents the target capital level from the applicable year's BSCR calculation.

(2) Regulatory targeted capital represents 200% of the RBC authorized control level calculation for the applicable year.

(3) The 2023 BSCR calculation is not yet due to be completed;

however, the Company anticipates that Bermuda Re's December 31, 2023 actual capital will exceed the targeted capital level.

In accordance with guidance issued by the BMA in February 2024, Bermuda Re has not reflected the impacts of the Economic Transition Adjustment recognized in response to the Bermuda Corporate Income Tax Act of 2023 (“the 2023 Act”) in its 2023 regulatory targeted capital or actual capital.

The BMA expects to complete its assessment before the 2023 Act becomes effective and to issue directives within a timeline that will be compatible with the 2023 Act coming into effect.

SUBSEQUENT EVENTS

non-recognized

earthquake occurred

which impacted the

to the recentness

of this event,

Company is unable to

estimate the magnitude of losses

at this time.

the Company anticipates

The Company has evaluated known recognized and non-recognized subsequent events.

The Company does not have any subsequent events to report

SCHEDULE I — SUMMARY OF INVESTMENTS —

OTHER THAN INVESTMENTS IN RELATED

OTHER THAN INVESTMENTS IN RELATED PARTIES

December 31, 2023

(Dollars in millions)

Column A Column B Column C Column D

(Dollars in millions) Cost Market

Fixed maturities - available for sale

6 unchanged sentences

Mortgage - backed securities:

Commercial 1,091 1,000 1,000

Agency residential 4,869 4,695 4,695

4 unchanged sentences

Foreign corporate securities 84 90 83

Public utilities 4 5 4

All other corporate bonds 754 738 747

Mortgage - backed securities:

Commercial 21 21 21

Total fixed maturities-held to maturity 864 854 855

2 unchanged sentences

Other invested assets 4,794 4,794 4,794

Cash 1,437 1,437 1,437

Total investments and cash $ 37,980 $ 37,141 $ 37,142

(Some amounts may not reconcile due to rounding.)

Original cost does not reflect fair value adjustments,

which have been realized through the statements

of operations and comprehensive income (loss).

SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

(1) Original cost does not reflect fair value adjustments, which have been realized through the statements of operations and comprehensive income (loss).

SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF THE REGISTRAN T

CONDENSED BALANCE SHEETS

(Dollars and share amounts in millions, except

par value per share)

Fixed maturities - available for sale

(amortized cost:

(Dollars and share amounts in millions, except par value per share) 2023 2022

Fixed maturities - available for sale (amortized cost:

Other invested assets (cost:

Investment in subsidiaries, at equity in the underlying net assets 14,832 11,116

Long-term notes receivable, affiliated 50 —

Accrued investment income 2 —

Receivable from subsidiaries 13 11

Other assets 46 43

TOTAL ASSETS $ 14,989 $ 11,192

Long-term notes payable, affiliated $ 1,773 $ 2,738

5 unchanged sentences

50.0 shares authorized;

shares issued and outstanding

no shares issued and outstanding

Common shares, par value:

200.0 shares authorized;

outstanding before treasury shares

(2023) 74.2 and (2022) 69.9 outstanding before treasury shares

Additional paid-in capital 3,773 2,302

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

tax expense (benefit) of ($

) at 2022 and $

Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) of ($ 99 ) at 2023 and $( 250 ) at 2022

( 934 ) ( 1,996 )

Treasury shares, at cost;

shares (2022) and

shares (2021)

30.8 shares (2023) and 30.8 shares (2022)

( 3,908 ) ( 3,908 )

Retained earnings 14,270 12,042

Total shareholders' equity 13,202 8,441

LIABILITIES AND SHAREHOLDERS' EQUITY

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 14,989 $ 11,192

(Some amounts may not reconcile due to rounding.)

1 unchanged sentence

SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

CONDENSED STATEMENTS

OF OPERATIONS

CONDENSED STATEMENTS OF OPERATIONS

Years Ended December 31,

(Dollars in thousands)

2023 2022 2021

(Dollars in millions)

Net investment income $ 4 $ — $ —

7 unchanged sentences

NET INCOME (LOSS) $ 2,517 $ 597 $ 1,379

Other comprehensive income (loss), net of tax:

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

Reclassification adjustment for realized losses (gains) included in net income (loss)

Total URA(D) on securities arising during the period

Foreign currency translation adjustments

Benefit plan actuarial net gain (loss) for the period

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

Total benefit plan net gain (loss) for the period

Other comprehensive income (loss) of subsidiaries, net of tax 1,063 ( 2,008 ) ( 523 )

COMPREHENSIVE INCOME (LOSS) $ 3,580 $ ( 1,411 ) $ 856

(Some amounts may not reconcile due to rounding.)

See notes to consolidated financial statements.

SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

CONDENSED STATEMENTS OF CASH FLOWS

Years Ended December 31,

(Dollars in millions, except share amounts) 2023 2022 2021

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss) $ 2,517 $ 597 $ 1,379

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

Equity in retained (earnings) deficit of subsidiaries ( 2,641 ) ( 648 ) ( 1,416 )

Cash dividends received from subsidiaries 365 476 320

Change in other assets and liabilities, net ( 8 ) 28 3

Increase (decrease) in due to/from affiliates 2 2 8

Amortization of bond premium (accrual of bond discount) — — —

Net (gains) losses on investments — — —

Non-cash compensation expense 3 2 2

Net cash provided by (used in) operating activities 238 457 296

CASH FLOWS FROM INVESTING ACTIVITIES:

Additional investment in subsidiaries ( 377 ) ( 824 ) ( 120 )

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

Proceeds from fixed maturities sold - available for sale 23 — —

Distribution from other invested assets 441 237 607

Cost of fixed maturities acquired - available for sale ( 23 ) — —

Cost of other invested assets acquired ( 479 ) ( 26 ) ( 535 )

Net change in short-term investments — — —

Proceeds from repayment of long term notes receivable - affiliated 50 — —

(Issuance) of long term notes receivable - affiliated ( 100 ) — —

Net cash provided by (used in) investing activities ( 465 ) ( 613 ) ( 48 )

CASH FLOWS FROM FINANCING ACTIVITIES:

Common shares issued during the period, net 23 26 27

Proceeds from public offering of common shares 1,445 — —

Purchase of treasury shares — ( 61 ) ( 225 )

Dividends paid to shareholders ( 288 ) ( 255 ) ( 247 )

Proceeds from issuance (cost of repayment) of long term notes payable - affiliated ( 965 ) 465 200

Net cash provided by (used in) financing activities 215 175 ( 245 )

EFFECT OF EXCHANGE RATE CHANGES ON CASH — — —

Net increase (decrease) in cash ( 13 ) 19 2

Cash, beginning of period 22 3 1

Cash, end of period $ 9 $ 22 $ 3

Non-Cash Transactions:

Dividend of 4,297,463 shares of Everest Group, Ltd.

(“Group”) common stock received by Group from Everest Preferred International Holdings (“Preferred Holdings”), a direct subsidiary

$ — $ 1,405 $ —

Issuance of $ 1,773 million promissory note payable by Group to Preferred Holdings in exchange for 5,422,508 shares of Group common stock received by Group from Preferred Holdings

Capital contribution of 9,719,971 shares of Group common stock provided from Group to Everest Re Advisors, Ltd.

(Some amounts may not reconcile due to rounding.)

See notes to consolidated financial statements.

SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

NOTES TO CONDENSED FINANCIAL INFORMATION

1.) The accompanying condensed financial information should be read in conjunction with the consolidated financial statements and related notes of Everest Group, Ltd.

and its subsidiaries.

2.) Everest Group, Ltd.

entered into a $ 300 million long-term note agreement with Everest Reinsurance Company, an affiliated company, as of December, 2019.

The note was scheduled to pay interest annually at a rate of 1.69 % and was scheduled to mature in December 2028.

However, the note was paid off in full in May 2023 and is no longer outstanding as of December 31, 2023.

At December 31, 2022, this transaction was included within long-term notes payable, affiliated in the condensed balance sheets of Everest Group, Ltd.

3.) Everest Group, Ltd.

entered into a $ 200 million long-term note agreement with Everest Reinsurance Company, an affiliated company, as of August 2021.

The note was scheduled to pay interest annually at a rate of 1.00 % and was scheduled to mature in August 2030.

However, the note was paid off in full in May 2023 and is no longer outstanding as of December 31, 2023.

At December 31, 2022, this transaction was included within long-term notes payable, affiliated in the condensed balance sheets of Everest Group, Ltd.

4.) Everest Group, Ltd.

entered into a $ 215 million long-term-note agreement with Everest Reinsurance Holdings, Inc., an affiliated company, as of June 2022.

The note was scheduled to pay interest annually at a rate of 3.11 % and was scheduled to mature in June 2052.

However, the note was paid off in full in May 2023 and is no longer outstanding as of December 31, 2023.

At December 31, 2022, this transaction was included within long-term notes payable, affiliated in the condensed balance sheets of Everest Group, Ltd.

5.) Everest Group, Ltd.

entered into a $ 125 million long-term note agreement with Everest Reinsurance Holdings, Inc., an affiliated company, as of December 2022.

The note was scheduled to pay interest annually at a rate of 4.34 % and was scheduled to mature in June 2052.

However, the note was paid off in full in May 2023 and is no longer outstanding as of December 31, 2023.

At December 31, 2022, this transaction was included within long-term notes payable, affiliated in the condensed balance sheets of Everest Group, Ltd.

6.) Everest Group, Ltd.

entered into a $ 125 million long-term note agreement with Everest International Reinsurance, an affiliated company, as of December 2022.

The note was scheduled to pay interest annually at a rate of 4.34 % and was scheduled to mature in December 2052.

However, the note was paid off in full in May 2023 and is no longer outstanding as of December 31, 2023.

At December 31, 2022, this transaction was included within long-term notes payable, affiliated in the condensed balance sheets of Everest Group, Ltd.

7.) Everest Group, Ltd.

entered into a $ 1.8 billion long-term note agreement with Everest Preferred International Holdings, an affiliated company, as of December 2022.

The note will pay interest annually at a rate of 4.34 % and is scheduled to mature in December 2052.

At December 31, 2023, this transaction was included within long-term notes payable, affiliated in the condensed balance sheets of Everest Group, Ltd.

8.) Everest Group, Ltd.

issued a $ 100 million long-term note agreement to Everest Reinsurance Bermuda, an affiliated company, as of May 2023.

The note will pay interest annually at a rate of 3.72 % and is scheduled to mature in May 2053.

Everest Reinsurance Bermuda repaid $ 50 million to Everest Group, Ltd.

in September 2023 which leaves $ 50 million outstanding as of December 31, 2023.

At December 31, 2023, this transaction was included within long-term notes receivable, affiliated in the condensed balance sheets of Everest Group, Ltd.

9.) Everest Group, Ltd.

has invested funds in the segregated accounts of Mt.

Logan Re, Ltd.

Logan Re”), an affiliated entity.

On the condensed balance sheets, investments in Mt.

Logan Re valued at $ 46 million and $ 65 million as of December 31, 2023 and 2022, respectively, have been recorded within other assets.

On the condensed statements of operations, income (expense) of $ 8.5 million, $( 0.9 ) million and $( 1.3 ) million for the years ended December 31, 2023, 2022 and 2021, respectively, have been recorded in other income (expense).

SCHEDULE III — SUPPLEMENTARY INSURANCE INFORMATION

Column A Column B Column C Column D Column E Column F Column G Column H Column I Column J

Costs Reserve

Expenses Unearned

Reserves Premiums

Income Incurred

Expenses Amortization

(Dollars in millions)

As of and Year Ended December 31, 2023

Reinsurance $ 968 $ 17,659 $ 4,018 $ 9,799 $ 1,004 $ 5,696 $ 2,520 $ 255 $ 10,802

Insurance 279 6,945 2,605 3,644 429 2,732 432 591 3,929

Total $ 1,247 $ 24,604 $ 6,622 $ 13,443 $ 1,434 $ 8,427 $ 2,952 $ 846 $ 14,730

As of and Year Ended December 31, 2022

Reinsurance $ 710 $ 16,111 $ 2,894 $ 8,598 $ 590 $ 5,966 $ 2,116 $ 217 $ 8,919

Insurance 252 5,954 2,253 3,189 240 2,134 413 464 3,426

Total $ 962 $ 22,065 $ 5,147 $ 11,787 $ 830 $ 8,100 $ 2,528 $ 682 $ 12,344

As of and Year Ended December 31, 2021

Reinsurance $ 654 $ 13,872 $ 2,723 $ 7,708 $ 823 $ 5,543 $ 1,833 $ 198 $ 8,488

Insurance 218 5,137 1,887 2,698 342 1,848 376 385 2,958

Total $ 872 $ 19,009 $ 4,610 $ 10,406 $ 1,165 $ 7,391 $ 2,209 $ 583 $ 11,446

(Some amounts may not reconcile due to rounding.)

SCHEDULE IV — REINSURANCE

Column A Column B Column C Column D Column E Column F

(Dollars in millions) Gross

Amount Ceded to

Companies Assumed

Companies Net

Amount Assumed

December 31, 2023

Total property and liability insurance premiums earned $ 4,733 $ 1,807 $ 10,518 $ 13,443 78.2 %

December 31, 2022

Total property and liability insurance premiums earned $ 4,218 $ 1,513 $ 9,082 $ 11,787 77.1 %

December 31, 2021

Total property and liability insurance premiums earned $ 3,589 $ 1,498 $ 8,315 $ 10,406 79.9 %

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 9A. Controls and Procedures