EVEREST GROUP, LTD. 10-K

ITEM 9A. CONTROLS AND PROCEDURES Disclosure Controls and Procedures. 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, 2024. In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control - Integrated Framework (2013) . Based on our assessment we concluded that, as of December 31, 2024, 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, 2024, has been audited by KPMG 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. 63 Table of Contents ITEM 9B. OTHER INFORMATION During the fiscal quarter ended December 31, 2024, 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 the Annual Report on Form 10-K for the period ended December 31, 2023 and incorporated by reference in “ITEM 15 - Exhibits and Financial Statement Schedules” below. ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS Not Applicable. 64 Table of Contents PART III ITEM 10. 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”, “Ethics Guidelines and Code of Ethics for CEO and Senior Financial Officers” and “Delinquent Section 16(a) Reports” in our proxy statement for the 2025 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, 2024 (the “Proxy Statement”), which sections are incorporated herein by reference. ITEM 11. EXECUTIVE COMPENSATION Reference is made to the sections captioned “Compensation Committee Report”, “Directors’ Compensation”, “Compensation of Executive Officers”, “Compensation Committee Interlocks and Insider Participation” and to all other applicable sections 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 NYSE. 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 in Exhibit 97 to the Annual Report on Form 10-K for the period ended December 31, 2023 and are incorporated by reference in “ITEM 15 - Exhibits and Financial Statement Schedules” below. ITEM 12. 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. ITEM 13. 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. ITEM 14. 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. PART IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES Financial Statements and Schedules. 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. Exhibits. 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. 65 Table of Contents INDEX TO EXHIBITS Exhibit 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. 333-87361) 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. 333-87361) 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. 333-87361) 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. Form 8-K filed on March 15, 2000 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 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 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 *10.1 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”) *10.2 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. 333-105483) *10.3 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 E-1 Table of Contents *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 Group, Ltd. Form 8-K filed on March 31, 2009 *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 *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 Amendment of employment agreement between Everest Global Services, Inc. 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 10.13 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 *10.14 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 Group, Ltd. Form 8-K filed on October 26, 2016 *10.15 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 10.16 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 E-2 Table of Contents 10.17 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 10.18 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 *10.19 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. 10.20 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 *10.21 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 *10.22 Employment agreement between Everest Global Services, Inc. and Mark Kociancic, incorporated herein by reference to Exhibit 10.1 to Everest Group, Ltd. Form 8-K filed on October 1, 2020 *10.23 Employment agreement between Everest Global Services, Inc. and James Williamson, incorporated herein by reference to Exhibit 10.2 to Everest Group, Ltd. Form 8-K filed on October 1, 2020 10.24 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 10.25 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 Group, Ltd. Form 10-Q filed on May 10, 2021 10.26 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 Group, Ltd. Form 10-Q filed on August 5, 2021 10.27 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 Group, Ltd. Form 10-Q filed on November 4, 2021 10.28 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 Group, Ltd. Form 10-Q filed on November 4, 2021 10.29 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 E-3 Table of Contents 10.30 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, incorporated herein by reference to Exhibit 10.41 to Everest Group, Ltd. Form 10-K filed on February 24, 2023 10.31 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, incorporated herein by reference to Exhibit 10.42 to Everest Group, Ltd. Form 10-K filed on February 24, 2023 *10.32 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 *10.33 Departure 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 10.34 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, 2023 10.35 Amended and restated standby letter of credit agreement between Everest Reinsurance (Bermuda), Ltd. and Lloyd’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, incorporated herein by reference to Exhibit 10.44 to Everest Group, L td. Form 10-K fil ed on Fe bruary 2 8 , 2024 *10.36 Employment agreement made effective as of June 12, 2023, between Everest Global Services, Inc. and Ricardo A. Anzaldua, incorporated herein by reference to Exhibit 10.4 5 to Everest Group, Ltd. Form 10-K filed on February 28, 2024 *10.37 Amendment to Employment Agreement between Everest Global Services, Inc., Everest Group, Ltd., Everest Reinsurance Holdings Inc. and Juan C. Andrade dated April 22, 2024 , incorporated herein by reference to Exhibit 10.1 to Everest Group, Ltd. Form 10-Q filed on May 3, 2024 *10.38 Amended and Restated Employment Agreement between Everest Global Services, Inc. and Mark Kociancic dated April 25, 2024 , incorporated herein by reference to Exhibit 10.2 to Everest Group, Ltd. Form 10-Q filed on May 3, 2024 *10.39 Amended and Restated Employment Agreement between Everest Global Services, Inc. and James Williamson dated April 26, 2024 , incorporated herein by reference to Exhibit 10.3 to Everest Group, Ltd. Form 10-Q filed on May 3, 2024 *10.40 Amended and Restated Employment Agreement between Everest National Insurance Company and Michael Karmilowicz dated March 24, 2024 , incorpo r a ted herein by reference to Exhibit 10.4 to Everest Group, Ltd. Form 10-Q filed on May 3, 2024 *10.41 Amended and Restated Employment Agreement between Everest Global Services, Inc. and Ricardo Anzaldua dated April 22, 2024 , incorporated herein by reference to Exhibit 10.5 to Everest Group, Ltd. Form 10-Q filed on May 3, 2024 10.42 Everest Reinsurance Group, Ltd. Senior Executive Change of Control Plan, as amended and restated effective November 17, 2015, incorporated herein by reference to Exhibit 10.6 to Everest Group, Ltd. Form 10-Q filed on May 3, 2024 E-4 Table of Contents 10.43 Amendment of Bilateral Letter of Credit Facility Agreement, dated June 2024, between Everest Reinsurance (Bermuda), Ltd. and Wells Fargo Bank N.A., incorporated herein by reference to Exhibit 10. 5 to Everest Group, Ltd. Form 10-Q filed on August 2 , 2024 10.44 Amendment of Credit Facility agreement, dated October 3 0 , 202 4 between Everest Reinsurance (Bermuda), Ltd. and Barclays Bank Plc , filed herewith 10.45 Standby Letter of Credit Facility Agreement, dated October 30, 2024 between Everest International Reinsurance , Ltd. and Lloyds Bank P lc , providing up to £113 million of unsecured letters of credit, filed herewith 10.46 Amendment of Credit Facility agreement, dated December 2 0, 202 4 , between Everest Reinsurance (Bermuda), Ltd. and Bayerische Landesbank, New York Branch, filed herewith 10.47 Standby Letter of Credit Facility Agreement , dated December 30 , 202 4 between Everest Reinsurance Company ( Ireland ), dac and Commerzbank AG, New York Branch providing up to €75 million of unsecured letters of credit, filed herewith 14.1 Ethics Guidelines and Index to Compliance Policies , incorporated herein by reference to Exhibit 14.1 to Everest Group, Ltd. Form 10-K filed on February 28, 2024 21.1 Subsidiaries of the registrant, filed herewith 23.1 Consent of KPMG LLP, filed herewith 23.2 C onse nt of Pricewaterhouse C oo pers LLP, filed herewith 31.1 Section 302 Certification of J ames Williamson, filed herewith 31.2 Section 302 Certification of Mark Kociancic, filed herewith 32.1 Section 906 Certification of J ames Williamson and Mark Kociancic, furnished herewith 97.1 Everest Group, Ltd. Clawback Policy , incorporated herein by reference to Exhibit 97.1 to Everest Group, Ltd. Form 10-K filed on February 28, 2024 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. E-5 Table of Contents SIGNATURES 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 27, 2025. EVEREST GROUP, LTD. By: /S/ JAMES WILLIAMSON James Williamson (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 /S/ JAMES WILLIAMSON President and Chief Executive Officer (Principal Executive Officer) February 27, 2025 James Williamson /S/ MARK KOCIANCIC Executive Vice President and Chief Financial Officer February 27, 2025 Mark Kociancic /S/ ROBERT J. FREILING Senior Vice President and Chief Accounting Officer February 27, 2025 Robert J. Freiling /S/ JOSEPH V. TARANTO Chairman February 27, 2025 Joseph V. Taranto /S/ JOHN J. AMORE Director February 27, 2025 John J. Amore /S/ WILLIAM F. GALTNEY, JR. Director February 27, 2025 William F. Galtney, Jr. /S/ JOHN A. GRAF Director February 27, 2025 John A. Graf /S/ MERYL HARTZBAND Director February 27, 2025 Meryl Hartzband /S/ GERALDINE LOSQUADRO Director February 27, 2025 Geraldine Losquadro /S/ HAZEL McNEILAGE Director February 27, 2025 Hazel McNeilage /S/ ROGER M. SINGER Director February 27, 2025 Roger M. Singer E-6 Table of Contents EVEREST GROUP, LTD. INDEX TO FINANCIAL STATEMENTS AND SCHEDULES Pages Report of Independent Registered Public Accounting Firm (PCAOB FIRM ID 185 , 238 ) F- 2 Consolidated Balance Sheets at December 31, 2024 and 2023 F- 6 Consolidated Statements of Operations and Comprehensive Income (Loss) for the Years Ended December 31, 2024 , 2023 and 2022 F- 7 Consolidated Statements of Changes in Shareholders’ Equity for the Years Ended December 31, 2024 , 2023 and 2022 F- 8 Consolidated Statements of Cash Flows for the Years Ended December 31, 2024 , 2023 and 2022 F- 9 Notes to Consolidated Financial Statements F- 10 Schedules I Summary of Investments Other Than Investments in Related Parties at December 31, 2024 S- 1 II Condensed Financial Information of Registrant: Balance Sheets as of December 31, 2024 and 2023 S- 2 Statements of Operations for the Years Ended December 31, 2024 , 2023 and 2022 S- 3 Statements of Cash Flows for the Years Ended December 31, 2024 , 2023 and 2022 S- 4 Notes to Condensed Financial Information S- 5 III Supplementary Insurance Information as of and for the Years Ended December 31, 2024 , 2023 and 2022 S- 7 IV Reinsurance for the Years Ended December 31, 2024 , 2023 and 2022 S- 8 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. F-1 Table of Contents Report of Independent Registered Public Accounting Firm To the Board of Directors and Shareholders Everest Group, Ltd.: Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting We have audited the accompanying consolidated balance sheet of Everest Group, Ltd. and subsidiaries (the Company) as of December 31, 2024, the related consolidated statements of operations and comprehensive income (loss), changes in shareholders’ equity, and cash flows for the year then ended, and the related notes and financial statement schedules listed in the index appearing on page F-1 (collectively, the consolidated financial statements). We also have audited the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. 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, 2024, and the results of its operations and its cash flows for the year then ended in conformity with U.S. generally accepted accounting principles. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024 based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. 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 the accompanying Management's Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express an opinion on the Company’s consolidated financial statements and an opinion 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 audit 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 audit 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 (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) 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 F-2 Table of Contents management and directors of the company; and (3) 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. 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. Critical Audit Matter 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: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter 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. Estimate of the reserve for losses and loss adjustment expenses As discussed in Notes 1E and 4 to the consolidated financial statements, the reserve for losses and loss adjustment expenses represents the Company’s best estimate of the ultimate liability for reported and unreported claims for both its insurance and reinsurance businesses. The Company uses a variety of statistical and actuarial techniques to develop estimates of ultimate losses and loss adjustment expenses by underwriting or accident year, sorted by exposure groupings. The Company considers many factors when setting reserves including: (1) exposure base and projected ultimate premium; (2) expected loss ratios; (3) actuarial methodologies and assumptions; (4) current legal interpretations of coverage and liability; and (5) economic conditions. The Company’s reserve for losses and loss adjustment expenses as of December 31, 2024 was $29,889 million. We identified the evaluation of the estimate of the reserve for losses and loss adjustment expenses as a critical audit matter. Evaluation of the estimate required subjective auditor judgment and the involvement of actuarial professionals with specialized skills and knowledge to assess the methods and assumptions used to estimate the reserve for losses and loss adjustment expenses. The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s process for estimating the reserve for losses and loss adjustment expenses. This included controls related to the selection of methodologies and certain assumptions used to derive the Company’s estimate. We involved actuarial professionals with specialized skills and knowledge who assisted in: • assessing the Company’s actuarial methodologies and assumptions used in estimating the reserve for losses and loss adjustment expenses by comparing the Company’s methodologies to generally accepted actuarial methods and evaluating the assumptions used based on actuarial judgment, company history, and industry practices • evaluating the Company’s estimated reserve for losses and loss adjustment expenses for certain lines of business by comparing each one to an independently developed range of reasonable estimates • evaluating the Company’s estimated reserve for losses and loss adjustment expenses for certain lines of business by assessing management’s methods and assumptions used to derive their loss estimates • evaluating the Company’s process for estimating the reserve for losses and loss adjustment expenses for catastrophic events • developing an overall range of reserve estimates to assess the position of the Company’s recorded reserve for losses and loss adjustment expenses relative to the range F-3 Table of Contents /s/ KPMG LLP We have served as the Company’s auditor since 2024. New York, New York February 27, 2025 F-4 Table of Contents Report of Independent Registered Public Accounting Firm To the Board of Directors and Shareholders of Everest Group, Ltd. Opinion on the Financial Statements We have audited the consolidated balance sheet of Everest Group, Ltd. and its subsidiaries (the "Company") as of December 31, 2023, and the related consolidated statements of operations and comprehensive income (loss), of changes in shareholders' equity and of cash flows for each of the two 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"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2023 in conformity with accounting principles generally accepted in the United States of America. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements 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 of these consolidated financial statements 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. Our audits 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. We believe that our audits provide a reasonable basis for our opinion. /s/ PricewaterhouseCoopers LLP New York, New York February 28, 2024, except for the changes in segment presentation discussed in Note 6 to the consolidated financial statements, as to which the date is February 27, 2025 We served as the Company’s auditor from 1996 to 2024. F-5 Table of Contents EVEREST GROUP, LTD. CONSOLIDATED BALANCE SHEETS December 31, (In millions of U.S. dollars, except par value per share) 2024 2023 ASSETS: Fixed maturities - available for sale, at fair value $ 28,908 $ 27,740 (amortized cost: 2024, $ 29,934 ; 2023, $ 28,568 , credit allowances: 2024, $( 36 ); 2023, $( 48 )) Fixed maturities - held to maturity, at amortized cost (fair value: 2024, $ 759 ; 2023, $ 854 , net of credit allowances: 2024, $( 8 ); 2023, $( 8 )) 757 855 Equity securities, at fair value 217 188 Other invested assets 5,392 4,794 Short-term investments 4,707 2,127 Cash 1,549 1,437 Total investments and cash 41,531 37,142 Accrued investment income 368 324 Premiums receivable (net of credit allowances: 2024, $( 54 ); 2023, $( 41 )) 5,378 4,768 Reinsurance paid loss recoverables (net of credit allowances: 2024, $( 41 ); 2023, $( 26 )) 207 164 Reinsurance unpaid loss recoverables 2,915 2,098 Funds held by reinsureds 1,218 1,135 Deferred acquisition costs 1,461 1,247 Prepaid reinsurance premiums 869 713 Income tax asset, net 1,223 868 Other assets (net of credit allowances: 2024, $( 9 ); 2023, $( 9 )) 1,171 941 TOTAL ASSETS $ 56,341 $ 49,399 LIABILITIES: Reserve for losses and loss adjustment expenses $ 29,889 $ 24,604 Unearned premium reserve 7,324 6,622 Funds held under reinsurance treaties 27 24 Amounts due to reinsurers 701 650 Losses in course of payment 241 171 Senior notes 2,350 2,349 Long-term notes 218 218 Borrowings from FHLB 1,019 819 Accrued interest on debt and borrowings 22 22 Unsettled securities payable 84 137 Other liabilities 590 582 TOTAL LIABILITIES 42,466 36,197 Commitments and contingencies (Note 11) SHAREHOLDERS' EQUITY: Preferred shares, par value: $ 0.01 ; 50.0 shares authorized; no shares issued and outstanding — — Common shares, par value: $ 0.01 ; 200.0 shares authorized; 74.3 (2024) and 74.2 (2023) outstanding before treasury shares 1 1 Additional paid-in capital 3,812 3,773 Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) of $( 177 ) at 2024 and $( 99 ) at 2023 ( 1,138 ) ( 934 ) Treasury shares, at cost: 31.3 shares (2024) and 30.8 shares (2023) ( 4,108 ) ( 3,908 ) Retained earnings 15,309 14,270 Total shareholders' equity 13,875 13,202 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 56,341 $ 49,399 The accompanying notes are an integral part of the consolidated financial statements. F-6 Table of Contents EVEREST GROUP, LTD. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) Years Ended December 31, (In millions of U.S. dollars, except per share amounts) 2024 2023 2022 REVENUES: Premiums earned $ 15,187 $ 13,443 $ 11,787 Net investment income 1,954 1,434 830 Total net gains (losses) on investments 19 ( 276 ) ( 455 ) Other income (expense) 121 ( 14 ) ( 102 ) Total revenues 17,281 14,587 12,060 CLAIMS AND EXPENSES: Incurred losses and loss adjustment expenses 11,305 8,427 8,100 Commission, brokerage, taxes and fees 3,300 2,952 2,528 Other underwriting expenses 938 846 682 Corporate expenses 95 73 61 Interest, fees and bond issue cost amortization expense 149 134 101 Total claims and expenses 15,787 12,432 11,472 INCOME (LOSS) BEFORE TAXES 1,493 2,154 588 Income tax expense (benefit) 120 ( 363 ) ( 9 ) NET INCOME (LOSS) $ 1,373 $ 2,517 $ 597 Other comprehensive income (loss), net of tax: Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period ( 97 ) 743 ( 2,037 ) Reclassification adjustment for realized losses (gains) included in net income (loss) ( 12 ) 244 89 Total URA(D) on securities arising during the period ( 109 ) 986 ( 1,948 ) Foreign currency translation and other adjustments ( 128 ) 59 ( 77 ) Benefit plan actuarial net gain (loss) for the period 34 15 15 Reclassification adjustment for amortization of net (gain) loss included in net income (loss) ( 1 ) 2 2 Total benefit plan net gain (loss) for the period 33 17 17 Total other comprehensive income (loss), net of tax ( 204 ) 1,063 ( 2,008 ) COMPREHENSIVE INCOME (LOSS) $ 1,169 $ 3,580 $ ( 1,411 ) EARNINGS PER COMMON SHARE: Basic $ 31.78 $ 60.19 $ 15.19 Diluted 31.78 60.19 15.19 The accompanying notes are an integral part of the consolidated financial statements. F-7 Table of Contents EVEREST GROUP, LTD. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY Years Ended December 31, (In millions of U.S. dollars, except dividends per share amounts) 2024 2023 2022 COMMON SHARES (shares outstanding): Balance beginning of period 43.4 39.2 39.3 Issued (redeemed) during the period, net 0.1 4.2 0.1 Treasury shares acquired ( 0.5 ) — ( 0.2 ) Balance end of period 43.0 43.4 39.2 COMMON SHARES (par value): Balance beginning of period $ 1 $ 1 $ 1 Issued during the period, net — — — Balance end of period 1 1 1 ADDITIONAL PAID-IN CAPITAL: Balance beginning of period 3,773 2,302 2,274 Public offering of shares — 1,445 — Share-based compensation plans 39 26 28 Balance end of period 3,812 3,773 2,302 ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), NET OF DEFERRED INCOME TAXES: Balance beginning of period ( 934 ) ( 1,996 ) 12 Net increase (decrease) during the period ( 204 ) 1,063 ( 2,008 ) Balance end of period ( 1,138 ) ( 934 ) ( 1,996 ) RETAINED EARNINGS: Balance beginning of period 14,270 12,042 11,700 Net income (loss) 1,373 2,517 597 Dividends declared ($ 7.75 per share 2024, $ 6.80 per share 2023 and $ 6.50 per share 2022) ( 334 ) ( 288 ) ( 255 ) Balance end of period 15,309 14,270 12,042 TREASURY SHARES AT COST: Balance beginning of period ( 3,908 ) ( 3,908 ) ( 3,847 ) Purchase of treasury shares ( 200 ) — ( 61 ) Balance end of period ( 4,108 ) ( 3,908 ) ( 3,908 ) TOTAL SHAREHOLDERS' EQUITY, END OF PERIOD $ 13,875 $ 13,202 $ 8,441 The accompanying notes are an integral part of the consolidated financial statements. F-8 Table of Contents EVEREST GROUP, LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS Years Ended December 31, (In millions of U.S. dollars) 2024 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 1,373 $ 2,517 $ 597 Adjustments to reconcile net income to net cash provided by operating activities: Decrease (increase) in premiums receivable ( 715 ) ( 1,064 ) ( 435 ) Decrease (increase) in funds held by reinsureds, net ( 81 ) ( 66 ) ( 197 ) Decrease (increase) in reinsurance recoverables ( 1,091 ) 143 ( 413 ) Decrease (increase) in income taxes ( 277 ) ( 559 ) ( 181 ) Decrease (increase) in prepaid reinsurance premiums ( 232 ) ( 46 ) ( 166 ) Increase (decrease) in reserve for losses and loss adjustment expenses 5,612 2,256 3,477 Increase (decrease) in unearned premiums 809 1,387 655 Increase (decrease) in amounts due to reinsurers 135 18 201 Increase (decrease) in losses in course of payment 75 93 ( 186 ) Change in equity adjustments in limited partnerships ( 261 ) ( 168 ) ( 94 ) Distribution of limited partnership income 163 120 180 Change in other assets and liabilities, net ( 431 ) ( 339 ) ( 297 ) Non-cash compensation expense 63 49 45 Amortization of bond premium (accrual of bond discount) ( 167 ) ( 64 ) 55 Net (gains) losses on investments ( 19 ) 276 455 Net cash provided by (used in) operating activities 4,957 4,553 3,695 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from fixed maturities matured/called/repaid - available for sale 3,783 2,310 2,626 Proceeds from fixed maturities sold - available for sale 6,257 3,849 1,403 Proceeds from fixed maturities matured/called/repaid - held to maturity 157 105 39 Proceeds from equity securities sold 37 126 2,217 Distributions from other invested assets 409 245 266 Cost of fixed maturities acquired - available for sale ( 11,563 ) ( 10,653 ) ( 7,344 ) Cost of fixed maturities acquired - held to maturity ( 49 ) ( 112 ) ( 153 ) Cost of equity securities acquired ( 50 ) ( 17 ) ( 1,003 ) Cost of other invested assets acquired ( 936 ) ( 902 ) ( 1,547 ) Net change in short-term investments ( 2,494 ) ( 1,034 ) 149 Net change in unsettled securities transactions ( 27 ) 181 ( 71 ) Net cash provided by (used in) investing activities ( 4,478 ) ( 5,902 ) ( 3,418 ) CASH FLOWS FROM FINANCING ACTIVITIES: Common shares issued (redeemed) during the period for share-based compensation, net of expense ( 24 ) ( 23 ) ( 17 ) Proceeds from public offering of common shares — 1,445 — Purchase of treasury shares ( 200 ) — ( 61 ) Dividends paid to shareholders ( 334 ) ( 288 ) ( 255 ) Proceeds from issuance of senior notes — — — Cost of debt repurchase — — ( 6 ) Net FHLB borrowings (repayments) 200 300 — Cost of shares withheld on settlements of share-based compensation awards ( 25 ) ( 24 ) ( 20 ) Net cash provided by (used in) financing activities ( 383 ) 1,409 ( 359 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH 16 ( 23 ) 39 Net increase (decrease) in cash 112 38 ( 42 ) Cash, beginning of period 1,437 1,398 1,441 Cash, end of period $ 1,549 $ 1,437 $ 1,398 SUPPLEMENTAL CASH FLOW INFORMATION: Income taxes paid (recovered) $ 397 $ 196 $ 171 Interest paid 147 130 98 NON-CASH TRANSACTIONS: Reclassification of specific investments from fixed maturity securities, available for sale at fair value to fixed maturity securities, held to maturity at amortized cost net of credit allowances $ — $ — $ 722 Non-cash limited partnership distribution 23 — — The accompanying notes are an integral part of the consolidated financial statements. F-9 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2024, 2023 and 2022 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Business and Basis of 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”), Everest Compañia de Seguros Generales Colombia S.A., Mt. Logan Insurance Managers, Ltd., Mt. Logan Management, Ltd., Everest International Holdings (Bermuda), Ltd. (“International Holdings”), Everest Corporate Member Limited, Everest Service Company (U.K.), Ltd., Everest Preferred International Holdings, Ltd. (“Preferred International”), Everest Reinsurance (Bermuda), Ltd. (“Bermuda Re”), Everest Re Advisors, Ltd., Everest Advisors (U.K.), Ltd., Everest Compañia de Seguros Generales Chile S.A. (“Everest Chile”), Compañia de Seguros Generales Everest Mexico S.A. de C.V., 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, Consultoría, Administración y Back Office, Sociedad de Responsabilidad Limitada de Capital Variable and Everest Servicios Colombia S.A.S. All intercompany accounts and transactions have been eliminated. All amounts are reported in United States (“U.S.”) dollars. 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. See ITEM 7, “Management’s Discussion and Analysis of Critical Accounting Estimates”. Certain reclassifications and format changes have been made to prior years’ amounts to conform to the 2024 presentation. B. Investments and Cash. 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 F-10 Table of Contents 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 majority of these fixed maturities classified as held to maturity are of a high credit quality and are rated investment grade as of December 31, 2024. Interest, dividend income and amortization of fixed maturity market premium and discounts, related to securities are recorded in net investment income, net of investment management and custody fees in the Company’s consolidated statements of operations and comprehensive income (loss). 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 F-11 Table of Contents 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. COLI 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 cash in trust funds set up for the benefit of ceding companies. C. Allowance for Premium Receivable and Reinsurance Recoverables. The Company applies the Current Expected Credit Losses 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 (“LAE”) 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 includes 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. F-12 Table of Contents 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. D. Deferred Acquisition Costs. 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. E. Reserve for Losses and LAE. The reserve for losses and 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 4 of the Notes to these Consolidated Financial Statements. The reserves are reviewed periodically and any changes in estimates are reflected in earnings in the period the adjustment is made. The Company’s loss and LAE reserves represent management’s best estimate of the ultimate liability. Loss and LAE reserves are presented gross of reinsurance recoverable and incurred losses and LAE are presented net of reinsurance. Accruals for commissions are established for reinsurance contracts that provide for the stated commission percentage to increase or decrease based on the loss experience of the contract. Changes in estimates for such arrangements are recorded as commission expense. Commission accruals for contracts with adjustable features are estimated based on expected loss and LAE. F. Premium Revenues. Written premiums are earned ratably over the periods of the related insurance and reinsurance contracts. Unearned premium reserves are established relative to the unexpired contract period. For reinsurance contracts, such reserves are established based upon reports received from ceding companies or estimated using pro rata methods based on statistical data. Reinstatement premiums represent additional premium recognized and earned at the time a loss event occurs and losses are recorded, most prevalently catastrophe related, when limits have been depleted under the original reinsurance contract and additional coverage is granted. The recognition of reinstatement premiums is based on estimates of loss and LAE, which reflects management’s judgement. Written and earned premiums and the related costs, which have not yet been reported to the Company, are estimated and accrued. Premiums are net of ceded reinsurance. During 2023, the Company refined its premium estimation methodology for its risk attaching reinsurance contracts within its Reinsurance segment to continue to recognize gross written premium over the term of the treaty, albeit over a different pattern than what was previously used. The refined estimate resulted in an increase of gross written premium for the twelve months ended December 31, 2023, and has further aligned the estimation methodology across the reinsurance division globally. This change had no impact on the total written premium to be recognized over the term of the treaty. There was no impact on net earned premium and therefore, no impact on income from continuing operations, net income or any related per-share amounts. F-13 Table of Contents G. Prepaid Reinsurance Premiums. Prepaid reinsurance premiums represent unearned premium reserves ceded to other reinsurers. Prepaid reinsurance premiums for any foreign reinsurers comprising more than 10% of the outstanding balance at December 31, 2024 were secured either through collateralized trust arrangements, rights of offset or letters of credit, thereby limiting the credit risk to the Company. H. Income Taxes. Holdings and its wholly owned subsidiaries file a consolidated U.S. federal income tax return. Foreign subsidiaries and branches of subsidiaries file local tax returns as required. Group and subsidiaries not included in Holdings’ consolidated tax return file separate company U.S. federal income tax returns as required. Deferred income taxes have been recorded to recognize the tax effect of temporary differences between the financial reporting and income tax bases of assets and liabilities, which arise because of differences between GAAP and income tax accounting rules. As a result of Bermuda enacting a corporate income tax effective January 1, 2025, Group subsidiaries in Bermuda will file and pay income taxes subsequent to that date. As an accounting policy, the Company has adopted the aggregate portfolio approach for releasing disproportionate income tax effects from Accumulated Other Comprehensive Income. I. Foreign Currency. The Company transacts business in numerous currencies through business units located around the world. The functional currency for each business unit is determined by the local currency used for most economic activity in that area. Movements in exchange rates related to transactions in currencies other than a business unit’s functional currency for monetary assets and liabilities are remeasured through the consolidated statements of operations and comprehensive income (loss) in other income (expense), except for currency movements related to available for sale fixed maturities securities, which are excluded from net income (loss) and accumulated in shareholders’ equity, net of deferred taxes. The business units’ functional currency financial statements are translated to the Company’s reporting currency, U.S. dollars, using the exchange rates at the end of period for the balance sheets and the average exchange rates in effect for the reporting period for the statements of operations and comprehensive income (loss). Gains and losses resulting from translating the foreign currency financial statements, net of deferred income taxes, are excluded from net income (loss) and accumulated as a separate component of other comprehensive income (loss) in shareholders’ equity. J. Treasury Shares. Treasury shares are the Company’s common shares repurchased on the open market, by the Company. The cost of treasury shares includes the purchase price of shares acquired and direct costs to acquire shares, including commissions. K. Earnings Per Common Share. Basic earnings per share are calculated by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per share reflect the potential dilution that would occur if options granted under various share-based compensation plans were exercised resulting in the issuance of common shares that would participate in the earnings of the entity. F-14 Table of Contents Net income (loss) per common share has been computed as per below, based upon weighted average common basic and dilutive shares outstanding. Years Ended December 31, (Amounts in millions, except per share amounts) 2024 2023 2022 Net income (loss) per share: Numerator Net income (loss) $ 1,373 $ 2,517 $ 597 Less: dividends declared-common shares and unvested common shares ( 334 ) ( 288 ) ( 255 ) Undistributed earnings 1,039 2,229 342 Percentage allocated to common shareholders (1) 98.8 % 98.8 % 98.7 % 1,027 2,203 337 Add: dividends declared-common shareholders 331 285 252 Numerator for basic and diluted earnings per common share $ 1,358 $ 2,488 $ 589 Denominator Denominator for basic earnings per weighted-average common shares 42.7 41.3 38.8 Effect of dilutive securities: Options — — — Denominator for diluted earnings per adjusted weighted-average common shares 42.7 41.3 38.8 Per common share net income (loss) Basic $ 31.78 $ 60.19 $ 15.19 Diluted $ 31.78 $ 60.19 $ 15.19 (1) Basic weighted-average common shares outstanding 42.7 41.3 38.8 Basic weighted-average common shares outstanding and unvested common shares expected to vest 43.2 41.8 39.3 Percentage allocated to common shareholders 98.8 % 98.8 % 98.7 % (Some amounts may not reconcile due to rounding.) There were no options outstanding as of December 31, 2024 and 2023, respectively. Options granted under share-based compensation plans have all expired as of September 19, 2022. There were no anti-diluted options outstanding as of December 31, 2023 or 2022. L. Segmentation. The Company, through its subsidiaries, conducts business through two reportable segments: Reinsurance and Insurance. During the fourth quarter of 2024, the Company revised the classification and presentation of certain run-off business, previously included within the Reinsurance and Insurance reportable segments, as part of a new operating segment called "Other". The new Other segment includes the results of our sports and leisure business sold in October 2024, consisting of policies written prior to the sale and polices renewed and certain new business written on the Company’s paper post-sale. It also includes run-off A&E exposures, certain discontinued insurance programs primarily written prior to 2012 and certain discontinued insurance and reinsurance coverage classes. The Other segment does not generally sell insurance or reinsurance products but is responsible for the management of existing policies and settlement of related losses. Additionally, during the fourth quarter of 2023, the Company revised the classification and presentation of certain products related to its accident and health business within the reportable segment groupings. These products have been realigned from within the Reinsurance segment to the Insurance segment to appropriately reflect how the business segments are now managed due to changes in management beginning in the fourth quarter of 2023. These segment presentation changes have been reflected retrospectively. See also Note 6 of the Notes to these Consolidated Financial Statements. M. Share-Based Compensation. 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 F-15 Table of Contents time the award is exercised or vests (becomes unrestricted). See Note 14 of the Notes to these Consolidated Financial Statements. N. Recent Accounting Pronouncements. Adoption of New Accounting Standards On November 27, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update No. 2023-07, Segment Reporting—Improvements to Reportable Segment Disclosures , which requires enhanced disclosures related to a public entity’s reportable segments. The Company adopted the accounting standard effective year end 2024. Adoption of the standard did not have a material impact on the Company’s consolidated financial statements. The Company did not adopt any other new accounting standards that had a material impact in 2024. Future Adoption of Recently Issued Accounting Standards The Company assessed the adoption impacts of recently issued accounting standards that are effective after 2024 by the FASB 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 2024. 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 FASB 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. Disaggregation of Income Statement Expenses. In November 2024, the FASB issued Accounting Standard Update No. 2024-03, which requires additional disclosure about specific expense categories included in the income statement. The guidance is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. 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. 2. INVESTMENTS 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, 2024 (Dollars in millions) Amortized Cost Allowance for Credit Losses Unrealized Appreciation Unrealized Depreciation Fair Value Fixed maturity securities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 688 $ — $ 5 $ ( 24 ) $ 669 Obligations of U.S. states and political subdivisions 75 — — ( 5 ) 70 Corporate securities 7,288 ( 35 ) 57 ( 299 ) 7,010 Asset-backed securities 5,994 — 28 ( 39 ) 5,982 Mortgage-backed securities Commercial 965 — 1 ( 66 ) 900 Agency residential 5,205 — 13 ( 287 ) 4,931 Non-agency residential 1,291 — 9 ( 11 ) 1,289 Foreign government securities 2,330 — 13 ( 147 ) 2,196 Foreign corporate securities 6,099 — 42 ( 279 ) 5,861 Total fixed maturity securities - available for sale $ 29,934 $ ( 36 ) $ 167 $ ( 1,157 ) $ 28,908 (Some amounts may not reconcile due to rounding.) F-16 Table of Contents At December 31, 2023 (Dollars in millions) Amortized Cost Allowance for Credit Losses Unrealized Appreciation Unrealized Depreciation Fair Value Fixed maturity securities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 1,045 $ — $ 3 $ ( 52 ) $ 996 Obligations of U.S. states and political subdivisions 138 — 1 ( 11 ) 128 Corporate securities 7,587 ( 47 ) 135 ( 322 ) 7,353 Asset-backed securities 5,644 — 25 ( 51 ) 5,618 Mortgage-backed securities Commercial 1,091 — 1 ( 92 ) 1,000 Agency residential 4,869 — 55 ( 229 ) 4,695 Non-agency residential 431 — 14 ( 2 ) 443 Foreign government securities 2,042 — 33 ( 108 ) 1,967 Foreign corporate securities 5,720 ( 1 ) 92 ( 271 ) 5,540 Total fixed maturity securities - available for sale $ 28,568 $ ( 48 ) $ 358 $ ( 1,137 ) $ 27,740 (Some amounts may not reconcile due to rounding.) The following tables show 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, 2024 (Dollars in millions) Amortized Cost Allowance for Credit Losses Unrealized Appreciation Unrealized Depreciation Fair Value Fixed maturity securities - held to maturity Corporate securities $ 177 $ ( 2 ) $ 5 $ ( 4 ) $ 175 Asset-backed securities 484 ( 4 ) 5 ( 8 ) 477 Mortgage-backed securities Commercial 21 — — — 21 Foreign corporate securities 84 ( 1 ) 4 — 86 Total fixed maturity securities - held to maturity $ 765 $ ( 8 ) $ 14 $ ( 12 ) $ 759 (Some amounts may not reconcile due to rounding.) At December 31, 2023 (Dollars in millions) Amortized Cost Allowance for Credit Losses Unrealized Appreciation Unrealized Depreciation Fair Value Fixed maturity securities - held to maturity Corporate securities $ 150 $ ( 2 ) $ 1 $ ( 3 ) $ 146 Asset-backed securities 609 ( 5 ) 4 ( 10 ) 597 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.) F-17 Table of Contents 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, 2024 At December 31, 2023 (Dollars in millions) Amortized Cost Fair Value Amortized Cost Fair Value Fixed maturity securities - available for sale Due in one year or less $ 1,116 $ 1,080 $ 1,289 $ 1,261 Due after one year through five years 8,774 8,480 7,094 6,858 Due after five years through ten years 4,764 4,523 5,613 5,405 Due after ten years 1,826 1,723 2,537 2,460 Asset-backed securities 5,994 5,982 5,644 5,618 Mortgage-backed securities Commercial 965 900 1,091 1,000 Agency residential 5,205 4,931 4,869 4,695 Non-agency residential 1,291 1,289 431 443 Total fixed maturity securities -available for sale $ 29,934 $ 28,908 $ 28,568 $ 27,740 (Some amounts may not reconcile due to rounding.) The amortized cost and fair value of fixed maturity securities - held to maturity are shown in the following table by contractual maturity. 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, 2024 At December 31, 2023 (Dollars in millions) Amortized Cost Fair Value Amortized Cost Fair Value Fixed maturity securities - held to maturity Due in one year or less $ 7 $ 7 $ 5 $ 5 Due after one year through five years 67 67 59 58 Due after five years through ten years 37 35 43 42 Due after ten years 150 152 127 131 Asset-backed securities 484 477 609 597 Mortgage-backed securities Commercial 21 21 21 21 Total fixed maturity securities - held to maturity $ 765 $ 759 $ 864 $ 854 (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, 2024, $ 34 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. F-18 Table of Contents The changes in net URA(D) for the Company’s investments are as follows: Years Ended December 31, (Dollars in millions) 2024 2023 Increase (decrease) during the period between the fair value and cost of investments carried at fair value, and deferred taxes thereon: Fixed maturity securities - available for sale and short-term investments $ ( 203 ) $ 1,129 Equity method investments 18 — Change in URA(D), pre-tax ( 185 ) 1,129 Deferred tax benefit (expense) 76 ( 142 ) Change in URA(D), net of deferred taxes, included in shareholders’ equity $ ( 109 ) $ 986 (Some amounts may not reconcile due to rounding.) The tables below display the aggregate fair value and gross unrealized depreciation of fixed maturity securities - available for sale by security type and contractual maturity, in each case subdivided according to length of time that the individual securities had been in a continuous unrealized loss position for the periods indicated: Duration of Unrealized Loss at December 31, 2024 by Security Type Less than 12 months Greater than 12 months Total (Dollars in millions) Fair Value Gross Unrealized Depreciation Fair Value Gross Unrealized Depreciation Fair Value Gross Unrealized Depreciation Fixed maturity securities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 80 $ ( 1 ) $ 398 $ ( 23 ) $ 478 $ ( 24 ) Obligations of U.S. states and political subdivisions 9 — 40 ( 5 ) 48 ( 5 ) Corporate securities 2,744 ( 76 ) 2,132 ( 221 ) 4,876 ( 297 ) Asset-backed securities 958 ( 20 ) 537 ( 19 ) 1,495 ( 39 ) Mortgage-backed securities Commercial 53 ( 3 ) 757 ( 63 ) 810 ( 66 ) Agency residential 2,754 ( 115 ) 1,226 ( 172 ) 3,980 ( 287 ) Non-agency residential 654 ( 11 ) 25 — 678 ( 11 ) Foreign government securities 851 ( 35 ) 828 ( 112 ) 1,679 ( 147 ) Foreign corporate securities 2,484 ( 61 ) 1,785 ( 218 ) 4,269 ( 279 ) Total $ 10,587 $ ( 323 ) $ 7,728 $ ( 833 ) $ 18,315 $ ( 1,156 ) Securities where an allowance for credit loss was recorded 17 ( 1 ) — — 17 ( 1 ) Total fixed maturity securities - available for sale $ 10,604 $ ( 324 ) $ 7,728 $ ( 833 ) $ 18,332 $ ( 1,157 ) (Some amounts may not reconcile due to rounding.) Duration of Unrealized Loss at December 31, 2024 by Maturity Less than 12 months Greater than 12 months Total (Dollars in millions) Fair Value Gross Unrealized Depreciation Fair Value Gross Unrealized Depreciation Fair Value Gross Unrealized Depreciation Fixed maturity securities - available for sale Due in one year or less $ 138 $ ( 5 ) $ 544 $ ( 34 ) $ 682 $ ( 39 ) Due in one year through five years 3,503 ( 87 ) 2,770 ( 249 ) 6,273 ( 335 ) Due in five years through ten years 1,850 ( 50 ) 1,382 ( 220 ) 3,232 ( 271 ) Due after ten years 677 ( 32 ) 487 ( 76 ) 1,164 ( 107 ) Asset-backed securities 958 ( 20 ) 537 ( 19 ) 1,495 ( 39 ) Mortgage-backed securities 3,461 ( 129 ) 2,008 ( 235 ) 5,469 ( 364 ) Total $ 10,587 $ ( 323 ) $ 7,728 $ ( 833 ) $ 18,315 $ ( 1,156 ) Securities where an allowance for credit loss was recorded 17 ( 1 ) — — 17 ( 1 ) Total fixed maturity securities - available for sale $ 10,604 $ ( 324 ) $ 7,728 $ ( 833 ) $ 18,332 $ ( 1,157 ) (Some amounts may not reconcile due to rounding.) The aggregate fair value and gross unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position at December 31, 2024 were $ 18.3 billion and $ 1.2 billion, respectively. The fair value of securities F-19 Table of Contents for the single issuer (the U.S. government) whose securities comprised the largest unrealized loss position at December 31, 2024, amounted to less than 1.6 % of the overall fair value of the Company’s fixed maturity securities - available for sale. The fair value of the securities for the issuer with the second largest unrealized loss position at December 31, 2024 comprised less than 0.9 % of the Company’s fixed maturity securities - available for sale. In addition, as indicated on the above table, there was no significant concentration of unrealized losses in any one market sector. The $ 324 million of unrealized losses related to fixed maturity securities - available for sale that have been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate securities, asset-backed securities, agency residential mortgage-backed securities and foreign government securities. Of these unrealized losses, $ 319 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. The $ 833 million of unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position for more than one year related primarily to domestic and foreign corporate securities, agency residential mortgage-backed securities and foreign government securities. Of these unrealized losses, $ 810 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. In all instances, there were no projected cash flow shortfalls to recover the full book value of the investments and the related interest obligations. The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments. Based upon the Company’s current evaluation of securities in an unrealized loss position as of December 31, 2024, the unrealized losses are due to changes in interest rates and non-issuer-specific credit spreads and are not credit-related. In addition, the contractual terms of these securities do not permit these securities to be settled at a price less than their amortized cost. The 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 the 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 Unrealized Depreciation Fair Value Gross Unrealized Depreciation Fair Value Gross Unrealized Depreciation Fixed maturity securities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 122 $ ( 3 ) $ 772 $ ( 49 ) $ 893 $ ( 52 ) Obligations of U.S. states and political subdivisions 3 — 74 ( 11 ) 77 ( 11 ) Corporate securities 1,019 ( 58 ) 2,780 ( 263 ) 3,799 ( 321 ) Asset-backed securities 196 ( 2 ) 2,014 ( 49 ) 2,210 ( 51 ) Mortgage-backed securities Commercial 181 ( 19 ) 742 ( 73 ) 923 ( 92 ) Agency residential 423 ( 4 ) 2,126 ( 225 ) 2,549 ( 229 ) Non-agency residential 126 ( 1 ) 4 — 130 — Foreign government securities 172 ( 7 ) 985 ( 101 ) 1,156 ( 108 ) Foreign corporate securities 324 ( 6 ) 2,726 ( 265 ) 3,050 ( 271 ) 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.) F-20 Table of Contents 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 Unrealized Depreciation Fair Value Gross Unrealized Depreciation Fair Value Gross Unrealized Depreciation Fixed maturity securities - available for sale Due in one year or less $ 184 $ ( 3 ) $ 773 $ ( 30 ) $ 958 $ ( 33 ) Due in one year through five years 699 ( 18 ) 3,841 ( 271 ) 4,540 ( 289 ) Due in five years through ten years 328 ( 15 ) 2,306 ( 310 ) 2,633 ( 325 ) Due after ten years 429 ( 39 ) 417 ( 77 ) 845 ( 116 ) Asset-backed securities 196 ( 2 ) 2,014 ( 49 ) 2,210 ( 51 ) Mortgage-backed securities 729 ( 24 ) 2,872 ( 298 ) 3,601 ( 323 ) 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 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 U.S. government) whose securities comprised the largest unrealized loss position at December 31, 2023, amounted to less than 3.0 % of the overall fair value of the Company’s fixed maturity securities - available for sale. The fair value of the securities for the issuer with the second largest unrealized loss comprised less than 0.7 % of the Company’s fixed maturity securities - available for sale. In addition, as indicated on the above table, there was no significant concentration of unrealized losses in any one market sector. The $ 102 million of unrealized losses related to fixed maturity securities - available for sale that have been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate securities, asset-backed securities, 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 rating agency. The $ 1.0 billion of unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position for more than one year related primarily to domestic and foreign corporate securities, 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 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, (Dollars in millions) 2024 2023 2022 Fixed maturities $ 1,481 $ 1,153 $ 742 Equity securities 3 3 16 Short-term investments and cash 195 140 28 Other invested assets Limited partnerships 206 122 75 Other 104 59 29 Gross investment income before adjustments 1,989 1,477 890 Funds held interest income (expense) 26 10 2 Future policy benefit reserve income (expense) ( 1 ) ( 1 ) — Gross investment income 2,013 1,486 892 Investment expenses 59 53 62 Net investment income $ 1,954 $ 1,434 $ 830 (Some amounts may not reconcile due to rounding.) The 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 (“NAV”) 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 F-21 Table of Contents 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 $ 3.3 billion in limited partnerships and private placement loan securities at December 31, 2024. These commitments will be funded when called in accordance with the partnership and loan agreements, which have investment periods that expire, unless extended, through 2034. In 2022, the Company entered into COLI policies, which are invested in private debt and private equity securities. The COLI policies are carried within other invested assets at the policy cash surrender value of $ 1.7 billion and $ 1.3 billion as of December 31, 2024 and December 31, 2023, 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 the 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, 2024 and 2023, 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, 2024 and 2023 is limited to the total carrying value of $ 5.4 billion and $ 4.8 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. Exposure relating specifically to general and limited partnerships as of December 31, 2024 and December 31, 2023 is limited to the total carrying value of $ 3.6 billion and $ 3.4 billion. As of December 31, 2024, the Company has outstanding commitments totaling $ 2.0 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 or 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. F-22 Table of Contents The components of net gains (losses) on investments are presented in the table below for the periods indicated: Years Ended December 31, (Dollars in millions) 2024 2023 2022 Fixed maturity securities Allowance for credit losses $ 13 $ 7 $ ( 33 ) Net realized gains (losses) from dispositions 6 ( 292 ) ( 87 ) Equity securities, fair value Net realized gains (losses) from dispositions 1 8 112 Gains (losses) from fair value adjustments ( 1 ) — ( 460 ) Other invested assets ( 1 ) — 13 Short-term investments gain (loss) 1 — — Total net gains (losses) on investments $ 19 $ ( 276 ) $ ( 455 ) (Some amounts may not reconcile due to rounding.) 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, 2024 Corporate Securities Foreign Corporate Securities Total (Dollars in millions) Beginning balance $ ( 47 ) $ ( 1 ) $ ( 48 ) Credit losses on securities where credit losses were not previously recorded ( 9 ) — ( 9 ) Increases in allowance on previously impaired securities — — — Decreases in allowance on previously impaired securities — — — Reduction in allowance due to disposals 20 1 21 Balance, end of period $ ( 35 ) $ — $ ( 36 ) (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, 2023 Corporate Securities Foreign Corporate Securities Total (Dollars in millions) Beginning balance $ ( 45 ) $ ( 10 ) $ ( 54 ) 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, end of period $ ( 47 ) $ ( 1 ) $ ( 48 ) (Some amounts may not reconcile due to rounding.) F-23 Table of Contents Roll Forward of Allowance for Credit Losses - Fixed Maturities - Held to Maturity Twelve Months Ended December 31, 2024 Corporate Securities Asset-Backed Securities Foreign Corporate Securities Total (Dollars in millions) Beginning balance $ ( 2 ) $ ( 5 ) $ ( 1 ) $ ( 8 ) Credit losses on securities where credit losses were not previously recorded — — ( 1 ) ( 1 ) 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 ) $ ( 4 ) $ ( 1 ) $ ( 8 ) (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, 2023 Corporate Securities Asset-Backed Securities Foreign Corporate 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 — — — — 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.) 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, (Dollars in millions) 2024 2023 2022 Proceeds from sales of fixed maturity securities - available for sale $ 6,257 $ 3,849 $ 1,403 Gross gains from sales 166 35 40 Gross losses from sales ( 160 ) ( 327 ) ( 127 ) Proceeds from sales of equity securities $ 37 $ 126 $ 2,217 Gross gains from sales 2 8 165 Gross losses from sales ( 1 ) — ( 53 ) Securities with a carrying value amount of $ 1.4 billion at December 31, 2024 were on deposit with or regulated by various state or governmental insurance departments in compliance with insurance laws. See Note 10 of the Notes to these Consolidated Financial Statements. 3. FAIR VALUE GAAP guidance regarding fair value measurements addresses how companies should measure fair value when they are required to use fair value measures for recognition or disclosure purposes under GAAP and provides a common definition of fair value to be used throughout GAAP. It defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly fashion between market participants at the measurement date. In addition, it establishes a three-level valuation hierarchy for the disclosure of fair value measurements. The valuation hierarchy is based on the transparency of inputs to the valuation of an asset or liability. The level in the hierarchy within which a F-24 Table of Contents given fair value measurement falls is determined based on the lowest level input that is significant to the measurement, with Level 1 being the highest priority and Level 3 being the lowest priority. The levels in the hierarchy are defined as follows: Level 1: Inputs to the valuation methodology are observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in an active market; Level 2: Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company’s fixed maturity and equity securities are 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. 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, 2024 and 2023, $ 2.2 billion and $ 2.0 billion, respectively, of fixed maturities were fair valued using unobservable inputs. The majority of these fixed maturities were valued by investment managers’ valuation committees and many of these fair values were substantiated by valuations from independent third parties. The Company has procedures in place to evaluate these independent third-party valuations. 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 are 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 F-25 Table of Contents for foreign denominated securities, the quotes are converted to U.S. dollars using currency exchange rates from nationally recognized sources. The composition and valuation inputs for the presented fixed maturities categories Level 1 and Level 2 are as follows: • U.S. Treasury securities and obligations of U.S. government agencies and corporations are primarily comprised of U.S. Treasury bonds, and the fair value is based on observable market inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields; • Obligations of U.S. states and political subdivisions are comprised of state and municipal bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads; • Corporate securities are primarily comprised of U.S. corporate and public utility bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads; • Asset-backed and mortgage-backed securities fair values are based on observable inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields and cash flow models using observable inputs such as prepayment speeds, collateral performance and default spreads; • Foreign government securities are comprised of global non-U.S. sovereign bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, are converted to U.S. dollars using an exchange rate from a nationally recognized source; and • 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, are converted to U.S. dollars using an exchange rate from a nationally recognized source. The following tables present 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, 2024 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Fixed maturities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 669 $ — $ 669 $ — Obligations of U.S. States and political subdivisions 70 — 70 — Corporate securities 7,010 — 6,492 518 Asset-backed securities 5,982 — 4,325 1,657 Mortgage-backed securities Commercial 900 — 900 — Agency residential 4,931 — 4,931 — Non-agency residential 1,289 — 1,289 — Foreign government securities 2,196 — 2,196 — Foreign corporate securities 5,861 — 5,847 14 Total fixed maturities - available for sale 28,908 — 26,719 2,189 Equity securities, fair value 217 79 133 5 (Some amounts may not reconcile due to rounding.) F-26 Table of Contents Fair Value Measurement Using: (Dollars in millions) December 31, 2023 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Fixed maturities - available for sale U.S. Treasury securities and obligations of U.S. government agencies and corporations $ 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 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, 2024 December 31, 2023 (Dollars in millions) Corporate Securities Asset-Backed Securities Foreign Corporate Total Corporate Securities Asset-Backed Securities Foreign Corporate Total Beginning balance fixed maturities $ 672 $ 1,305 $ 16 $ 1,993 $ 715 $ 994 $ 16 $ 1,725 Total gains or (losses) (realized/unrealized) Included in earnings (or changes in net assets) ( 1 ) — 1 — 4 — — 4 Included in other comprehensive income (loss) 1 12 — 13 ( 2 ) 6 — 4 Purchases, issuances and settlements ( 154 ) 339 ( 2 ) 183 ( 45 ) 305 — 260 Transfers in and/or (out) of Level 3 and reclassification of securities in/(out) of investment categories — — — — — — — — Ending balance $ 518 $ 1,657 $ 14 $ 2,189 $ 672 $ 1,305 $ 16 $ 1,993 The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date $ ( 3 ) $ — $ — $ ( 3 ) $ 9 $ — $ — $ 9 (Some amounts may not reconcile due to rounding.) There were no transfers of assets in/(out) of Level 3 during 2024 or 2023. Financial Instruments Disclosed, But Not Reported, at Fair Value Certain financial instruments disclosed, but not reported, at fair value are excluded from the fair value hierarchy tables above. Fair values and valuation hierarchy of fixed maturity securities - held to maturity, senior notes and long-term subordinated notes can be found within Notes 2, 8 and 9 of the Notes to these Consolidated Financial Statements, respectively. Short-term investments are stated at cost, which approximates fair value. See Note 1 of the Notes to these Consolidated Financial Statements. F-27 Table of Contents Exempt from Fair Value Disclosure Requirements Certain financial instruments are exempt from the requirements for fair value disclosure, such as limited partnerships accounted for under the equity method and pension and other postretirement obligations. The Company’s investments in COLI policies are recorded at their cash surrender value and are therefore not required to be included in the tables above. See Note 1 of the Notes to these Consolidated Financial Statements for details of investments in COLI policies. In addition, $ 239 million and $ 274 million of investments within other invested assets on the consolidated balance sheets as of December 31, 2024 and 2023, respectively, are not included within the fair value hierarchy tables, as the assets are measured at NAV as a practical expedient to determine fair value. 4. 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, (Dollars in millions) 2024 2023 2022 Gross reserves beginning of period $ 24,604 $ 22,065 $ 19,009 Less reinsurance recoverables on unpaid losses ( 2,098 ) ( 2,105 ) ( 1,946 ) Net reserves beginning of period 22,506 19,960 17,063 Incurred related to: Current year 9,967 8,432 8,102 Prior years 1,337 ( 5 ) ( 2 ) Total incurred losses and LAE 11,305 8,427 8,100 Paid related to: Current year 1,258 1,379 1,220 Prior years 5,279 4,731 3,740 Total paid losses and LAE 6,537 6,110 4,960 Foreign exchange/translation adjustment ( 298 ) 229 ( 243 ) Net reserves end of period 26,975 22,506 19,960 Plus reinsurance recoverables on unpaid losses 2,915 2,098 2,105 Gross reserves end of period $ 29,889 $ 24,604 $ 22,065 (Some amounts may not reconcile due to rounding.) Current year incurred losses were $ 10.0 billion, $ 8.4 billion and $ 8.1 billion in 2024, 2023 and 2022, respectively. The increase in current year incurred losses from 2023 to 2024 was primarily related to an increase of $ 1.1 billion in current year attritional losses, resulting from the impact of the increase in premiums earned and changes in the mix of business, as well as an increase of $ 423 million in current year catastrophe losses. Gross and net reserves increased in 2023, reflecting an increase in underlying exposure due to premium growth, year over year and changes in the mix of business, partially offset by a decrease of $ 585 million in 2023 current year catastrophe losses compared to 2022. Incurred prior years unfavorable development in losses was $ 1.3 billion in 2024. Incurred prior years favorable development in losses was $ 5 million in 2023 and $ 2 million in 2022. The net unfavorable development on prior year reserves of $ 1.3 billion in 2024 is primarily comprised of $ 1.1 billion of unfavorable development on prior years attritional losses for the Insurance segment, mainly driven by a combination of social inflation and portfolio concentrations in certain U.S. casualty lines and $ 403 million of unfavorable development on prior years attritional losses for Other segment, mainly related to certain sports and leisure lines for accident years 2019 through 2023, including A&E reserve strengthening of $ 54 million resulting in a 3-year net asbestos survival ratio of 7 years. In addition, the Reinsurance segment recorded $ 684 million of unfavorable development on prior year casualty reserves. This unfavorable development in the Reinsurance segment was largely offset by favorable development booked on property and mortgage lines. The net favorable development on prior year reserves of $ 5 million in 2023 is comprised of $ 401 million of F-28 Table of Contents favorable development on prior years attritional losses for reinsurance lines, mainly related to mortgage and short-tail lines of business, mostly offset by $ 285 million of unfavorable development on prior years attritional losses for insurance lines, mainly related to casualty lines for accident years from 2016 through 2019 as well as $ 110 million of unfavorable development on prior years attritional losses for other lines. 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 following is information about incurred and paid claims development as of December 31, 2024, net of reinsurance, as well as cumulative claim frequency and the total of IBNR liabilities 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, 2015 to December 31, 2023 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. F-29 Table of Contents 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, 2024 (Dollars in millions) Net outstanding liabilities Reinsurance Casualty $ 12,810 Reinsurance Property 6,028 Insurance Casualty 5,891 Insurance Property 762 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance (1) 25,491 Reinsurance recoverable on unpaid claims Reinsurance Casualty 73 Reinsurance Property 624 Insurance Casualty 1,750 Insurance Property 237 Total reinsurance recoverable on unpaid claims (1) 2,683 Insurance lines other than short-duration — Unallocated claims adjustment expenses 316 Other (2) 1,400 1,716 Total gross liability for unpaid claims and claim adjustment expense $ 29,889 (Some amounts may not reco ncile due to rounding.) (1) Amounts disclosed are for reinsurance and insurance reportable segments. (2) The other amount is primarily comprised of the new Other segment, which includes the results of our sports and leisure business sold in October 2024, consisting of policies written prior to the sale and polices renewed and certain new business written on the Company’s paper post-sale. It also includes run-off A&E exposures, certain discontinued insurance programs primarily written prior to 2012 and certain discontinued insurance and reinsurance coverage classes. The Other segment does not generally sell insurance or reinsurance products but is responsible for the management of existing policies and settlement of related losses. The following tables present the ultimate loss and allocated LAE and the paid loss and allocated LAE, 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, 2024 Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 (unaudited) 2020 (unaudited) 2021 (unaudited) 2022 (unaudited) 2023 (unaudited) 2024 (Dollars in millions) 2015 $ 777 $ 821 $ 818 $ 815 $ 799 $ 835 $ 835 $ 833 $ 832 $ 845 $ 45 N/A 2016 792 870 867 862 938 940 970 1,000 1,022 52 N/A 2017 875 834 841 922 931 986 1,051 1,079 24 N/A 2018 1,447 1,445 1,522 1,553 1,621 1,718 1,775 246 N/A 2019 1,761 1,826 1,828 1,853 1,893 1,954 346 N/A 2020 1,957 1,928 1,907 1,869 1,911 588 N/A 2021 2,491 2,487 2,427 2,518 1,229 N/A 2022 2,730 2,688 2,739 1,658 N/A 2023 2,958 3,123 2,315 N/A 2024 3,275 2,756 N/A $ 20,240 (Some amounts may not reconcile due to rounding.) F-30 Table of Contents Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, Accident Year 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 (unaudited) 2020 (unaudited) 2021 (unaudited) 2022 (unaudited) 2023 (unaudited) 2024 (Dollars in millions) 2015 $ 56 $ 158 $ 265 $ 410 $ 499 $ 567 $ 613 $ 650 $ 677 $ 702 2016 89 189 323 429 542 618 693 762 826 2017 80 186 317 458 582 681 790 917 2018 188 296 497 652 828 1,008 1,214 2019 239 364 533 735 963 1,234 2020 205 307 486 720 987 2021 206 319 542 845 2022 184 345 646 2023 201 422 2024 256 $ 8,048 All outstanding liabilities prior to 2015, net of reinsurance 617 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 12,810 (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 Casualty 8.4 % 6.7 % 10.4 % 11.6 % 11.6 % 10.4 % 9.2 % 7.9 % 4.9 % 2.9 % Reinsurance - Property Business At December 31, 2024 Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 (unaudited) 2020 (unaudited) 2021 (unaudited) 2022 (unaudited) 2023 (unaudited) 2024 (Dollars in millions) 2015 $ 1,378 $ 1,037 $ 956 $ 930 $ 933 $ 925 $ 927 $ 924 $ 921 $ 911 $ — N/A 2016 1,681 1,502 1,538 1,532 1,510 1,511 1,507 1,509 1,502 1 N/A 2017 2,773 3,396 3,507 3,636 3,681 3,692 3,705 3,724 3 N/A 2018 2,594 2,469 2,471 2,409 2,362 2,347 2,382 3 N/A 2019 2,005 2,036 1,981 1,866 1,869 1,920 2 N/A 2020 2,388 2,461 2,405 2,377 2,379 3 N/A 2021 2,745 2,770 2,692 2,582 14 N/A 2022 3,202 2,880 2,586 261 N/A 2023 2,788 2,411 662 N/A 2024 3,940 2,214 N/A $ 24,337 (Some amounts may not reconcile due to rounding.) F-31 Table of Contents Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, Accident Year 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 (unaudited) 2020 (unaudited) 2021 (unaudited) 2022 (unaudited) 2023 (unaudited) 2024 (Dollars in millions) 2015 $ 369 $ 591 $ 740 $ 823 $ 850 $ 871 $ 879 $ 884 $ 888 $ 889 2016 459 946 1,056 1,080 1,089 1,081 1,082 1,084 1,128 2017 810 2,170 2,733 3,117 3,313 3,407 3,482 3,590 2018 534 1,509 1,857 2,047 2,121 2,184 2,307 2019 714 1,159 1,482 1,645 1,771 1,934 2020 571 1,302 1,706 1,989 2,251 2021 679 1,523 2,014 2,420 2022 619 1,364 1,896 2023 600 1,165 2024 774 $ 18,355 All outstanding liabilities prior to 2015, net of reinsurance 46 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 6,028 (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 25.2 % 31.2 % 16.2 % 10.0 % 5.4 % 3.2 % 2.4 % 1.9 % 2.0 % 0.2 % Insurance - Casualty Business At December 31, 2024 Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 (unaudited) 2020 (unaudited) 2021 (unaudited) 2022 (unaudited) 2023 (unaudited) 2024 (Dollars in millions) 2015 $ 487 $ 492 $ 500 $ 503 $ 427 $ 426 $ 427 $ 434 $ 426 $ 445 $ 11 27,331 2016 504 510 538 557 489 474 478 488 494 17 31,267 2017 559 557 567 585 559 559 584 580 32 34,793 2018 643 648 679 685 697 772 811 64 34,838 2019 774 777 797 804 953 1,089 145 37,837 2020 912 989 977 975 1,096 273 39,675 2021 1,117 1,159 1,153 1,353 464 44,458 2022 1,241 1,239 1,597 739 46,433 2023 1,424 1,740 1,125 44,372 2024 1,788 1,546 33,512 $ 10,993 (Some amounts may not reconcile due to rounding.) F-32 Table of Contents Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, Accident Year 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 (unaudited) 2020 (unaudited) 2021 (unaudited) 2022 (unaudited) 2023 (unaudited) 2024 (Dollars in millions) 2015 $ 43 $ 127 $ 208 $ 270 $ 325 $ 351 $ 379 $ 397 $ 409 $ 417 2016 51 156 253 314 362 398 430 448 460 2017 52 165 263 343 404 467 493 527 2018 61 196 296 407 539 623 678 2019 69 218 364 498 646 828 2020 63 229 372 531 659 2021 105 246 428 655 2022 79 282 578 2023 93 311 2024 85 $ 5,200 All outstanding liabilities prior to 2015, net of reinsurance 97 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 5,891 (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 Casualty 6.4 % 14.3 % 15.3 % 14.2 % 12.7 % 11.5 % 6.1 % 4.6 % 2.6 % 1.9 % Insurance - Property Business At December 31, 2024 Ultimate Incurred Loss and Allocated Loss Adjustment Expenses, Net of reinsurance Years Ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 (unaudited) 2020 (unaudited) 2021 (unaudited) 2022 (unaudited) 2023 (unaudited) 2024 (Dollars in millions) 2015 $ 179 $ 169 $ 159 $ 160 $ 161 $ 162 $ 163 $ 165 $ 164 $ 165 $ 1 N/A 2016 289 281 284 292 297 299 300 302 301 2 N/A 2017 486 494 486 494 496 508 509 506 1 N/A 2018 403 399 401 410 428 436 435 3 N/A 2019 347 352 350 365 380 375 6 N/A 2020 601 508 498 503 492 10 N/A 2021 646 585 602 628 37 N/A 2022 770 796 698 42 N/A 2023 717 669 94 N/A 2024 597 192 N/A $ 4,864 (Some amounts may not reconcile due to rounding.) F-33 Table of Contents Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, Accident Year 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 (unaudited) 2020 (unaudited) 2021 (unaudited) 2022 (unaudited) 2023 (unaudited) 2024 (Dollars in millions) 2015 $ 107 $ 153 $ 155 $ 158 $ 160 $ 161 $ 162 $ 163 $ 163 $ 164 2016 167 249 272 290 296 297 299 299 299 2017 176 416 452 477 493 505 504 505 2018 240 356 376 407 424 429 431 2019 226 313 335 355 363 368 2020 292 413 450 465 473 2021 325 482 544 565 2022 377 567 594 2023 400 503 2024 200 $ 4,102 All outstanding liabilities prior to 2015, net of reinsurance — Liabilities for claims and claim adjustment expenses, net of reinsurance 762 (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 54.0 % 30.4 % 6.3 % 4.6 % 2.5 % 1.4 % 0.3 % 0.1 % — % 0.3 % Reserving Methodology The Company maintains reserves equal to management’s estimated ultimate liability for losses and 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. 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 F-34 Table of Contents 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 250 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 uncertainty 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 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. 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. For both short and long tail lines, the Company supplements these general approaches with analytically based judgments. 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 at an earlier stage than for long tail lines. For immature underwriting or accident years, the initial expected loss ratios are key inputs that involve management’s judgment and are based on a variety of factors, including: (1) expected loss ratios developed during the Company’s pricing process; (2) historical loss ratios adjusted for rate change and trend; and (3) industry benchmarks for similar business. These judgments take into account management’s view of past, current and future factors that may influence ultimate losses, including: (1) market conditions; (2) changes in the business underwritten; (3) changes in timing of the emergence of claims; and (4) other factors. The determination of when reported losses are sufficient and credible to warrant selection of an ultimate loss ratio different from the initial expected loss ratio also requires judgment. 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. Rather, loss and LAE reserves are estimated by management by completing an in-depth analysis of the individual contracts which may potentially be impacted by the loss. The analysis uses inputs from various sources and methodology, to build up a comprehensive perspective. Such analysis generally involves: (1) estimating the size of insured industry losses; (2) reviewing portfolios to identify contracts which are exposed; (3) reviewing information reported or otherwise provided by customers and brokers; (4) discussing the loss with customers F-35 Table of Contents and brokers; and (5) estimating the ultimate expected cost to settle all claims and administrative costs arising from the loss on a contract-by-contract basis and in aggregate for the event. Due to the inherent uniqueness or specific nature of a catastrophic event, each event has its own unique assessment, and different weights may be applied to various inputs based on management’s judgment. Once a loss has occurred, during the then current reporting period, the Company records its best estimate of the ultimate expected cost to settle all claims arising from the loss. The Company’s estimate of loss and LAE reserves is then determined by deducting cumulative paid losses from its estimate of the ultimate expected loss. The Company’s estimate of IBNR is determined by deducting cumulative paid losses, case reserves and additional case reserves from its estimate of the ultimate expected loss. Because catastrophe losses are typically due to prominent, public events such as hurricanes and earthquakes, the Company is often able to use independent reports as part of its loss reserve estimation process. The Company also reviews catastrophe bulletins published by various statistical modeling agencies to assist in determining the size of the industry loss, although these reports may not be available for some time after an event. For smaller events including localized severe weather events such as windstorms, hail, ice, snow, flooding, freezing and tornadoes, which are not necessarily prominent, public occurrences, the Company initially places greater reliance on catastrophe bulletins published by statistical modeling agencies to assist in determining what events occurred during the reporting period than the Company does for large events. This includes reviewing catastrophe bulletins published by Property Claim Services for U.S. catastrophes. The Company sets its initial estimates of reserves for loss and LAE for these smaller events based on a combination of its historical market share for these types of losses and the estimate of the total insured industry property losses as reported by statistical modeling agencies, although management may make significant adjustments based on the Company’s current exposure to the geographic region involved as well as the size of the loss and the peril involved. In general, reserves for the Company’s more recent large losses are subject to greater uncertainty and, therefore, greater potential variability, and are likely to experience material changes from one period to the next. This is due to the uncertainty as to the size of the industry losses, uncertainty as to which contracts have been exposed, uncertainty due to complex legal and coverage issues that can arise out of large or complex losses and uncertainty as to the magnitude of losses and LAE incurred by the Company’s customers. As the Company’s losses age, more information becomes available, and the Company believes its estimates become more certain. 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 (“Mt. McKinley”), 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. F-36 Table of Contents 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, (Dollars in millions) 2024 2023 2022 Gross basis: Beginning of period reserves $ 247 $ 278 $ 175 Incurred losses 62 — 144 Paid losses ( 49 ) ( 31 ) ( 42 ) End of period reserves $ 260 $ 247 $ 278 Net basis: Beginning of period reserves $ 232 $ 257 $ 156 Incurred losses 54 — 138 Paid losses ( 43 ) ( 25 ) ( 37 ) End of period reserves $ 242 $ 232 $ 257 (Some amounts may not reconcile due to rounding.) In 2015, the Company sold Mt. McKinley to Clearwater Insurance Company (“Clearwater”), a subsidiary of Fairfax Financial. Concurrently with the closing, the Company entered into a retrocession treaty with an affiliate of Clearwater. 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. Reinsurance Recoverables. Reinsurance recoverables for both paid and unpaid losses totaled $ 3.1 billion and $ 2.3 billion at December 31, 2024 and December 31, 2023, respectively. At December 31, 2024, $ 395 million, or 12.6 %, was receivable from Mt. Logan Re, Ltd. (“Mt. Logan Re”) collateralized segregated accounts; $ 316 million, or 10.1 %, was receivable from Munich Reinsurance America, Inc. and $ 187 million, or 6.0 %, was recoverable from Endurance Reinsurance Corporation of America. No other retrocessionaire accounted for more than 5 % of our receivables. 5. REINSURANCE 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 LAE reserves that may be ceded under the terms of the reinsurance agreements, including IBNR unpaid losses. The Company’s estimate of losses and LAE 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 IBNR 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 LAE. The Company may hold partial collateral, including letters of credit and funds held, under these agreements. See also Note 1C, Note 4 and Note 10 of the Notes to these Consolidated Financial Statements. F-37 Table of Contents Balances are considered past due when amounts that have been billed are not collected within contractually stipulated time periods, generally 30, 60 or 90 days. To manage reinsurer credit risk, a reinsurance security review committee evaluates the credit standing, financial performance, management and operational quality of each potential reinsurer. In placing reinsurance, the Company considers the nature of the risk reinsured, including the expected liability payout duration and establishes limits tiered by reinsurer credit rating. Where its contracts permit, the Company secures future claim obligations with various forms of collateral or other credit enhancement, including irrevocable letters of credit, secured trusts, funds held accounts and group wide offsets. See Note 1C of the Notes to these Consolidated Financial Statements for discussion of allowance on reinsurance recoverables. Insurance companies, including reinsurers, are regulated and hold risk-based capital to mitigate the risk of loss due to economic factors and other risks. Non-U.S. reinsurers are either subject to a capital regime substantively equivalent to domestic insurers or we hold collateral to support collection of reinsurance receivable. As a result, there is limited history of losses from insurer defaults. Premiums written and earned and incurred losses and LAE are comprised of the following for the periods indicated: Years Ended December 31, (Dollars in millions) 2024 2023 2022 Written premiums: Direct $ 5,115 $ 5,031 $ 4,602 Assumed 13,117 11,606 9,350 Ceded ( 2,418 ) ( 1,907 ) ( 1,608 ) Net written premiums $ 15,814 $ 14,730 $ 12,344 Premiums earned: Direct $ 4,977 $ 4,733 $ 4,218 Assumed 12,458 10,518 9,082 Ceded ( 2,248 ) ( 1,807 ) ( 1,513 ) Net premiums earned $ 15,187 $ 13,443 $ 11,787 Incurred losses and LAE: Direct $ 5,465 $ 3,209 $ 2,804 Assumed 7,464 5,870 6,285 Ceded ( 1,624 ) ( 651 ) ( 988 ) Net incurred losses and LAE $ 11,305 $ 8,427 $ 8,100 6. SEGMENT REPORTING The Company conducts business through two reportable segments: Reinsurance and Insurance. The Reinsurance operation writes worldwide property and casualty reinsurance and specialty lines of business, on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies. Business is written in the U.S., Bermuda, and Ireland offices, as well as, through branches in Canada, Singapore, the United Kingdom (“U.K.”) and Switzerland. The Insurance operation writes property and casualty insurance directly and through brokers, including for surplus lines, and general agents within the U.S., Bermuda, Canada, Europe, Singapore and South America through its offices in the U.S., Bermuda, Canada, Chile, Colombia, Mexico, Singapore, the U.K., Ireland, and branches located in Australia, the U.K., the Netherlands, France, Germany, Italy and Spain. The two segments are managed independently, but conform with corporate guidelines with respect to pricing, risk management, control of aggregate catastrophe exposures, capital, investments and support operations. Our two reportable segments each have executive leaders who are responsible for the overall performance of their respective segments and who are directly accountable to our chief operating decision maker (“CODM”), the Chief Executive Officer of Everest Group, Ltd., who is ultimately responsible for reviewing the business to assess performance, make operating decisions and allocate resources. We report the results of our operations consistent with the manner in which our CODM reviews the business. F-38 Table of Contents During the fourth quarter of 2024, the Company revised its classification and presentation of certain run-off business, previously included within the Reinsurance and Insurance reportable segments, as part of a new segment called "Other". The new Other segment includes the results of our sports and leisure business sold in October 2024, consisting of policies written prior to the sale and polices renewed and certain new business written on the Company’s paper post-sale. It also includes run-off A&E exposures, certain discontinued insurance programs primarily written prior to 2012 and certain discontinued insurance and reinsurance coverage classes. The Other segment does not generally sell insurance or reinsurance products but is responsible for the management of existing policies and settlement of related losses. Additionally, during the fourth quarter of 2023, the Company revised the classification and presentation of certain products related to its accident and health business within the reportable segment groupings. These products have been realigned from within the Reinsurance segment to the Insurance segment to appropriately reflect how the business segments are managed due to changes in management implemented during the fourth quarter of 2023. These segment presentation changes have been reflected retrospectively within this Form 10-K, including Schedule III - Supplementary Insurance Information. The Company will continue to have two reportable segments that actively sell products, Reinsurance and Insurance, consistent with how the on-going business is managed. The Company does not review and evaluate the financial results of its segments based upon balance sheet data. Management generally monitors and evaluates the financial performance of these segments based upon their underwriting results. Underwriting results include earned premium less losses and LAE incurred, commission and brokerage expenses and other underwriting expenses. The Company measures its underwriting results using ratios, in particular, loss, commission and brokerage and other underwriting expense ratios, which, respectively, divide incurred losses, commissions and brokerage and other underwriting expenses by premiums earned. Management has determined that these measures are appropriate and align with how the business is managed. We continue to evaluate our segments as our business evolves and may further refine our segments and financial performance measures. The following tables present segment underwriting results for the periods indicated: Year Ended December 31, 2024 (Dollars in millions) Reinsurance Insurance Other Total Gross written premiums $ 12,941 $ 5,078 $ 212 $ 18,232 Net written premiums 11,969 3,678 167 15,814 Premiums earned $ 11,412 $ 3,579 $ 197 $ 15,187 Incurred losses and LAE 7,103 3,622 580 11,305 Commission and brokerage 2,837 439 24 3,300 Other underwriting expenses 290 615 33 938 Underwriting gain (loss) $ 1,181 $ ( 1,097 ) $ ( 440 ) $ ( 356 ) Net investment income 1,954 Net gains (losses) on investments 19 Corporate expenses ( 95 ) Interest, fee and bond issue cost amortization expense ( 149 ) Other income (expense) 121 Income (loss) before taxes $ 1,493 F-39 Table of Contents Year Ended December 31, 2023 (Dollars in millions) Reinsurance Insurance Other Total Gross written premiums $ 11,460 $ 4,888 $ 289 $ 16,637 Net written premiums 10,802 3,704 225 14,730 Premiums earned $ 9,799 $ 3,420 $ 225 $ 13,443 Incurred losses and LAE 5,690 2,471 266 8,427 Commission and brokerage 2,520 410 22 2,952 Other underwriting expenses 254 556 35 846 Underwriting gain (loss) $ 1,334 $ ( 18 ) $ ( 98 ) $ 1,219 Net investment income 1,434 Net gains (losses) on investments ( 276 ) Corporate expenses ( 73 ) Interest, fee and bond issue cost amortization expense ( 134 ) Other income (expense) ( 14 ) Income (loss) before taxes $ 2,154 Year Ended December 31, 2022 (Dollars in millions) Reinsurance Insurance Other Total Gross written premiums $ 9,246 $ 4,426 $ 279 $ 13,952 Net written premiums 8,917 3,223 204 12,344 Premiums earned $ 8,596 $ 2,998 $ 194 $ 11,787 Incurred losses and LAE 5,962 2,040 98 8,100 Commission and brokerage 2,116 399 14 2,528 Other underwriting expenses 216 438 28 682 Underwriting gain (loss) $ 302 $ 121 $ 54 $ 477 Net investment income 830 Net gains (losses) on investments ( 455 ) Corporate expenses ( 61 ) Interest, fee and bond issue cost amortization expense ( 101 ) Other income (expense) ( 102 ) Income (loss) before taxes $ 588 The following table below presents gross written premiums by geographic region. Allocations have been made on the basis of location of risk. United States Europe All other 2024 57 % 25 % 18 % 2023 58 % 24 % 18 % 2022 63 % 22 % 15 % Approximately 21.9 %, 20.4 % and 20.0 % of the Company’s gross written premiums in 2024, 2023 and 2022, respectively, were sourced through the Company’s largest intermediary. 7. CREDIT FACILITIES As of December 31, 2024, the Company has multiple active committed letter of credit facilities with a total commitment of up to $ 1.7 billion, as well as two additional credit facilities denominated in British Pound Sterling and Euros, with total commitments of up to £ 113 million and € 75 million, respectively. The Company also has additional uncommitted letter of F-40 Table of Contents credit facilities of up to $ 240 million which may be accessible via written request and corresponding authorization from the applicable lender. There is no guarantee the uncommitted capacity will be available to us on a future date. The terms and outstanding amounts for each facility are discussed below. See Note 10 of the Notes to these Consolidated Financial Statements for collateral posted related to secured letters of credit. Bermuda Re Wells Fargo Bilateral Letter of Credit Facility Effective February 23, 2021, Bermuda Re entered into a letter of credit issuance facility with Wells Fargo, referred to as the “Bermuda Re Wells Fargo Bilateral Letter of Credit Facility.” The Bermuda Re Wells Fargo Bilateral Letter of Credit Facility originally provided for the issuance of up to $ 50 million of secured letters of credit. Effective May 5, 2021, the agreement was amended to provide for the issuance of up to $ 500 million of secured letters of credit. Effective June 10, 2024, the agreement was amended to extend the availability of committed issuance for one year. The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At December 31, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Bermuda Re Wells Fargo Bank Bilateral LOC Facility $ 500 $ 455 12/31/2025 $ 500 $ 97 6/24/2024 71 6/28/2024 318 12/31/2024 $ 500 $ 455 $ 500 $ 486 (Some amounts may not reconcile due to rounding.) Bermuda Re Citibank Letter of Credit Facility Effective August 9, 2021, Bermuda Re entered into a letter of credit issuance facility with Citibank N.A. referred to as the “Bermuda Re Citibank Letter of Credit Facility”. The Bermuda Re Citibank Letter of Credit Facility provides for the committed issuance of up to $ 230 million of secured letters of credit. In addition, the facility provided for the uncommitted issuance of up to $ 140 million, which may be accessible via written request by the Company and corresponding authorization from Citibank N.A. Effective December 13, 2023, the agreement was amended to extend the availability of committed issuance for an additional two years . The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At December 31, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Bermuda Re Citibank LOC Facility- Committed $ 230 $ — 1/21/2025 $ 230 $ — 01/21/2024 4 2/28/2025 4 02/29/2024 2 3/1/2025 1 3/1/2024 1 3/15/2025 3 9/23/2024 3 9/23/2025 1 12/1/2024 1 12/1/2025 — 12/16/2024 — 12/16/2025 — 12/20/2024 — 12/20/2025 217 12/31/2024 197 12/31/2025 1 8/15/2025 1 8/15/2026 Bermuda Re Citibank LOC Facility - Uncommitted 140 75 12/31/2025 140 105 12/31/2024 7 12/30/2028 7 12/30/2027 Total Citibank Bilateral Agreement $ 370 $ 293 $ 370 $ 340 (Some amounts may not reconcile due to rounding.) Bermuda Re Bayerische Landesbank Bilateral Secured Credit Facility Effective August 27, 2021, Bermuda Re entered into a letter of credit issuance facility with Bayerische Landesbank, an agreement referred to as the “Bermuda Re Bayerische Landesbank Bilateral Secured Credit Facility”. The Bermuda Re F-41 Table of Contents Bayerische Landesbank Bilateral Secured Credit Facility provides for the committed issuance of up to $ 200 million of secured letters of credit. Effective August 16, 2024, the Bermuda Re Bayerische Landesbank Bilateral Secured Credit Facility was amended to extend the availability of committed issuance for three years . The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At December 31, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Bermuda Re Bayerische Landesbank Bilateral Secured Credit Facility - Committed $ 200 $ 193 12/31/2025 $ 200 $ 192 12/31/2024 (Some amounts may not reconcile due to rounding.) Bermuda Re Bayerische Landesbank Bilateral Unsecured Letter of Credit Facility Effective December 30, 2022, Bermuda Re entered into a new additional letter of credit issuance facility with Bayerische Landesbank, New York Branch, referred to as the “Bermuda Re Bayerische Landesbank Bilateral Unsecured Letter of Credit Facility”. The Bermuda Re Bayerische Landesbank Bilateral Unsecured Letter of Credit Facility provides for the committed issuance of up to $ 150 million of unsecured letters of credit and is fully and unconditionally guaranteed by Group, as Parent Guarantor. The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At December 31, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Bermuda Re Bayerische Landesbank Bilateral Unsecured Credit Facility - Committed $ 150 $ 150 12/31/2025 $ 150 $ 150 12/31/2024 (Some amounts may not reconcile due to rounding.) Bermuda Re Lloyd’s Bank Letter of Credit Facility. Effective December 27, 2023, Bermuda Re entered into an amended and restated letter of credit issuance facility with Lloyd’s Bank Corporate Markets PLC, to add Ireland Insurance as an account party with access to a $ 15 million sub-limit for the issuance of letters of credit, an agreement referred to as the “Bermuda Re Lloyd’s Bank Letter of Credit Facility”, which superseded the previous letter of credit issuance facility with Lloyd’s Bank that was effective August 18, 2023. The Bermuda Re Lloyd’s Bank Letter of Credit Facility provides for the committed issuance of up to $ 250 million of unsecured letters of credit and is fully and unconditionally guaranteed by Group, as Parent Guarantor. The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At December 31, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Bermuda Re Lloyd's Bank Credit Facility-Committed $ 250 $ 244 12/31/2025 $ 250 $ 235 12/31/2024 (Some amounts may not reconcile due to rounding.) Bermuda Re Barclays Bank Credit Facility Effective November 3, 2021, Bermuda Re entered into a letter of credit issuance facility with Barclays Bank PLC, an agreement referred to as the “Bermuda Re Barclays Credit Facility”. The Bermuda Re Barclays Credit Facility provides for the committed issuance of up to $ 200 million of secured letters of credit. Effective October 30, 2024, the agreement was amended to extend the availability of the committed issuance for three years . F-42 Table of Contents The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At December 31, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Bermuda Re Barclays Bilateral Letter of Credit Facility $ 200 $ 150 12/30/2025 $ 200 $ 168 12/30/2024 — 14 12/31/2025 — 14 12/31/2024 Total Bermuda Re Barclays Bilateral Letter of Credit Facility $ 200 $ 164 $ 200 $ 182 (Some amounts may not reconcile due to rounding.) Bermuda Re Nordea Bank Letter of Credit Facility Effective November 21, 2022, Bermuda Re entered into a letter of credit issuance facility with Nordea Bank ABP, New York Branch, referred to as the “Nordea Bank Letter of Credit Facility”. The Bermuda Re Nordea Bank Letter of Credit Facility provides for the committed issuance of up to $ 200 million of unsecured letters of credit, and subject to credit approval, uncommitted issuance of $ 100 million for a maximum total facility amount of $ 300 million. The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At December 31, 2024 At December 31, 2023 Letter of Credit Facility Commitment In Use Date of Expiry Commitment In Use Date of Expiry Nordea Bank Letter of Credit Facility - Committed $ 200 $ 200 12/31/2025 $ 200 $ 200 12/31/2024 Nordea Bank Letter of Credit Facility - Uncommitted 100 100 12/31/2025 100 100 12/31/2024 Total Nordea Bank ABP, NY LOC Facility $ 300 $ 300 $ 300 $ 300 (Some amounts may not reconcile due to rounding.) Everest International Reinsurance, Ltd. Funds at Lloyds Syndicated Letter of Credit Facility Effective October 30, 2024, Everest International entered into a letter of credit issuance facility with a syndicate of banks including Lloyds Bank plc, Commerzbank AG, London Branch and ING Bank N.V., London Branch, referred to as the “Funds at Lloyds Syndicated Letter of Credit Facility”. The Everest International Reinsurance Funds at Lloyds Syndicated Letter of Credit Facility provides for the committed issuance of up to £ 113 million of unsecured letters of credit to support Everest Corporate Member Limited’s Funds at Lloyds requirements. The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At December 31, 2024 Letter of Credit Facility Commitment In Use Date of Expiry Everest International Reinsurance, Ltd. Funds at Lloyds Syndicated Letter of Credit Facility £ 113 £ 107 11/1/2028 (Some amounts may not reconcile due to rounding.) Everest Reinsurance Company (Ireland), dac Commerzbank Letter of Credit Facility Effective December 30, 2024, Ireland Re entered into a letter of credit issuance facility with Commerzbank AG, New York Branch, referred to as the “Commerzbank Letter of Credit Facility”. The Ireland Re Commerzbank Letter of Credit Facility provides for the committed issuance of up to € 75 million of unsecured letters of credit. The following table summarizes the outstanding letters of credit for the periods indicated: (Dollars in millions) At December 31, 2024 Letter of Credit Facility Commitment In Use Date of Expiry Everest Reinsurance Company (Ireland), dac Commerzbank Letter of Credit Facility € 75 € 20 12/31/2025 (Some amounts may not reconcile due to rounding.) F-43 Table of Contents Federal Home Loan Bank Membership Everest Re is a member of the Federal Home Loan Bank of New York (“FHLBNY”), which allows Everest Re to borrow up to 10 % of its statutory admitted assets. As of December 31, 2024, Everest Re had statutory admitted assets of approximately $ 30.8 billion which provides borrowing capacity of up to approximately $ 3.1 billion. As of December 31, 2024, Everest Re had $ 1.0 billion of borrowings outstanding, which begin to expire in 2025. Everest Re incurred interest expense of $ 45 million and $ 30 million for the years ended December 31, 2024 and 2023, respectively. The FHLBNY membership agreement requires that 4.5 % of borrowed funds be used to acquire additional membership stock. Additionally, the FHLBNY membership agreement requires that members must have sufficient qualifying collateral pledged. As of December 31, 2024, Everest Re had $ 1.3 billion of collateral pledged. 8. SENIOR NOTES The table below displays Holdings’ outstanding senior notes (the “Senior Notes”). Fair value is based on quoted market prices, but due to limited trading activity, the Senior Notes are considered Level 2 in the fair value hierarchy. December 31, 2024 December 31, 2023 (Dollars in millions) Date Issued Date Due Principal Amounts Consolidated Balance Sheet Amount Fair Value Consolidated Balance Sheet Amount Fair Value 4.868 % Senior notes 6/5/2014 6/1/2044 $ 400 $ 398 $ 347 $ 398 $ 369 3.5 % Senior notes 10/7/2020 10/15/2050 1,000 982 681 981 742 3.125 % Senior notes 10/4/2021 10/15/2052 1,000 971 620 970 688 $ 2,400 $ 2,350 $ 1,648 $ 2,349 $ 1,799 (Some amounts may not reconcile due to rounding.) Interest expense incurred in connection with the Senior Notes is as follows for the periods indicated: Years Ended December 31, (Dollars in millions) Interest Paid Payable Dates 2024 2023 2022 4.868 % Senior Notes semi-annually June 1/December 1 $ 19 $ 19 $ 19 3.5 % Senior Notes semi-annually April 15/October 15 35 35 35 3.125 % Senior Notes semi-annually April 15/October 15 32 32 32 $ 86 $ 86 $ 86 (Some amounts may not reconcile due to rounding.) 9. LONG-TERM SUBORDINATED NOTES The table below displays Holdings’ outstanding fixed to floating rate long-term subordinated notes (“Subordinated Notes Issued 2007”). Fair value is based on quoted market prices, but due to limited trading activity, these Subordinated Notes Issued 2007 are considered Level 2 in the fair value hierarchy. Maturity Date December 31, 2024 December 31, 2023 (Dollars in millions) Date Issued Original Principal Amount Scheduled Final Consolidated Balance Sheet Amount Fair Value Consolidated Balance Sheet Amount Fair Value Subordinated Notes Issued 2007 4/26/2007 $ 400 5/15/2037 5/1/2067 $ 218 $ 215 $ 218 $ 187 During the fixed rate interest period from May 3, 2007 through May 14, 2017, interest was at the annual rate of 6.6 %, payable semi-annually in arrears on November 15 and May 15 of each year, commencing on November 15, 2007. During the floating rate interest period from May 15, 2017 through maturity, interest was initially on the 3-month London Interbank Offered Rate (“LIBOR”) plus 238.5 basis points, reset quarterly, payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, subject to Holdings’ right to defer interest on one or more occasions for up to ten consecutive years. Deferred interest will accumulate interest at the applicable rate compounded quarterly for periods from and including May 15, 2017. The reset quarterly interest rate for November 15, 2024 to February 18, F-44 Table of Contents 2025 is 7.17 %. Following the cessation of LIBOR, for periods from and including August 15, 2023, interest will be based on the 3-month Chicago Mercantile Exchange Term Secured Overnight Financing Rate plus a spread. Holdings may redeem the Subordinated Notes Issued 2007 on or after May 15, 2017, in whole or in part at 100 % of the principal amount plus accrued and unpaid interest; however, redemption on or after the scheduled maturity date and prior to May 1, 2047 is subject to a replacement capital covenant. This covenant is for the benefit of the Senior Note holders and it mandates that Holdings receive proceeds from the sale of another subordinated debt issue, of at least similar size, before it may redeem the Subordinated Notes Issued 2007. The Company’s Senior Notes are the Company’s long-term indebtedness that rank senior to the Subordinated Notes Issued 2007. In 2009, the Company had reduced its outstanding amount of long-term subordinated notes through the initiation of a cash tender offer for any and all of the long-term subordinated notes. In addition, the Company repurchased and retired $ 6 million of the outstanding long-term subordinated notes for the year ended December 31, 2022. The Company realized a gain of $ 1 million on the repurchases made during 2022. Interest expense incurred in connection with these long-term Subordinated Notes Issued 2007 is as follows for the periods indicated: Years Ended December 31, (Dollars in millions) 2024 2023 2022 Interest expense incurred $ 17 $ 17 $ 9 10. COLLATERALIZED REINSURANCE, TRUST AGREEMENTS AND OTHER RESTRICTED ASSETS The Company maintains certain restricted assets as security for potential future obligations, primarily to support its underwriting operations. The following table summarizes the Company’s restricted assets: At December 31, (Dollars in millions) 2024 2023 Collateral in trust for non-affiliated agreements $ 3,241 $ 3,208 Collateral for secured letter of credit facilities 1,386 1,438 Collateral for FHLB borrowings 1,294 1,077 Securities on deposit with or regulated by government authorities 1,406 1,447 Funds at Lloyd's 341 538 Funds held by reinsureds 1,218 1,135 Total restricted assets $ 8,885 $ 8,843 Restricted cash is included in cash on the consolidated balance sheets. At December 31, 2024 and December 31, 2023, the Company had restricted cash of $ 397 million and $ 243 million, respectively. Total restricted cash includes amounts on deposit in trust accounts for non-affiliated agreements and secured letter of credit facilities. The Company reinsures some of its catastrophe exposures with the segregated accounts of a subsidiary, Mt. Logan Re. Mt. Logan Re is a collateralized insurer registered in Bermuda and 100 % of the voting common shares are owned by Group. Each segregated account invests predominantly in a diversified set of catastrophe exposures, diversified by risk/peril and across different geographic regions globally. F-45 Table of Contents The following table summarizes the premiums and losses that are ceded by the Company to Mt. Logan Re segregated accounts and assumed by the Company from Mt. Logan Re segregated accounts. Years Ended December 31, Mt. Logan Re Segregated Accounts 2024 2023 2022 (Dollars in millions) Ceded written premiums 433 246 201 Ceded earned premiums 376 242 206 Ceded losses and LAE 188 64 191 Assumed written premiums 10 6 5 Assumed earned premiums 10 6 5 Effective April 1, 2018, the Company entered into a retroactive reinsurance transaction with one of the Mt. Logan Re segregated accounts to retrocede $ 269 million of casualty reserves held by Bermuda Re related to accident years 2002 through 2015. As consideration for entering the agreement, the Company transferred cash of $ 252 million to the Mt. Logan Re segregated account. The maximum liability to be retroceded under the agreement will be $ 319 million. The Company will retain liability for any amounts exceeding the maximum liability. Effective July 1, 2022, the Company commuted this reinsurance agreement with Mt. Logan segregated account. The Company entered into various collateralized reinsurance agreements with Kilimanjaro Re Limited (“Kilimanjaro”), a Bermuda-based special purpose reinsurer, to provide the Company with catastrophe reinsurance coverage. These agreements are multi-year reinsurance contracts which cover named storm and earthquake events. The table below summarizes the various agreements. (Dollars in millions) Class Description Effective Date Expiration Date Limit Coverage Basis Series 2021-1 Class A-1 US, Canada, Puerto Rico – Named Storm and Earthquake Events 4/8/2021 4/21/2025 150 Occurrence Series 2021-1 Class B-1 US, Canada, Puerto Rico – Named Storm and Earthquake Events 4/8/2021 4/21/2025 85 Aggregate Series 2021-1 Class C-1 US, Canada, Puerto Rico – Named Storm and Earthquake Events 4/8/2021 4/21/2025 85 Aggregate Series 2021-1 Class A-2 US, Canada, Puerto Rico – Named Storm and Earthquake Events 4/8/2021 4/20/2026 150 Occurrence Series 2021-1 Class B-2 US, Canada, Puerto Rico – Named Storm and Earthquake Events 4/8/2021 4/20/2026 90 Aggregate Series 2021-1 Class C-2 US, Canada, Puerto Rico – Named Storm and Earthquake Events 4/8/2021 4/20/2026 90 Aggregate Series 2022-1 Class A US, Canada, Puerto Rico – Named Storm and Earthquake Events 6/22/2022 6/25/2025 300 Aggregate Series 2024-1 Class A US, Canada, Puerto Rico – Named Storm and Earthquake Events 6/27/2024 6/30/2028 75 Occurrence Series 2024-1 Class B US, Canada, Puerto Rico – Named Storm and Earthquake Events 6/27/2024 6/30/2028 125 Occurrence Total available limit as of December 31, 2024 $ 1,150 Recoveries under these collateralized reinsurance agreements with Kilimanjaro are primarily dependent on estimated industry level insured losses from covered events, as well as the geographic location of the events. The estimated industry level of insured losses is obtained from published estimates by an independent recognized authority on insured property losses. Kilimanjaro has financed the various property catastrophe reinsurance coverages by issuing catastrophe bonds to unrelated, external investors. The proceeds from the issuance of the catastrophe bonds are held in reinsurance trusts throughout the duration of the applicable reinsurance agreements and invested solely in U.S. government money market funds with a rating of at least “AAAm” by Standard & Poor’s. The catastrophe bonds’ issue dates, maturity dates and amounts correspond to the reinsurance agreements listed above. 11. COMMITMENTS AND CONTINGENCIES In the ordinary course of business, the Company is involved in lawsuits, arbitrations and other formal and informal dispute resolution procedures, the outcomes of which will determine the Company’s rights and obligations under insurance and reinsurance agreements. In some disputes, the Company seeks to enforce its rights under an agreement or to collect funds owing to it. In other matters, the Company is resisting attempts by others to collect funds or enforce alleged rights. These disputes arise from time to time and are ultimately resolved through both informal and formal means, including negotiated resolution, arbitration and litigation. In all such matters, the Company believes that its F-46 Table of Contents positions are legally and commercially reasonable. The Company considers the statuses of these proceedings when determining its reserves for unpaid loss and LAE. Aside from litigation and arbitrations related to these insurance and reinsurance agreements, the Company is not a party to any other material litigation or arbitration. The Company has entered into separate annuity agreements with The Prudential Insurance of America (“The Prudential”), an unaffiliated life insurance company, as well as an additional unaffiliated life insurance company in which the Company has either purchased annuity contracts or become the assignee of annuity proceeds that are meant to settle claim payment obligations in the future. In both instances, the Company would become contingently liable if either The Prudential or the unaffiliated life insurance company was unable to make payments related to the respective annuity contract. The table below presents the estimated cost to replace all such annuities for which the Company was contingently liable for the periods indicated: At December 31, (Dollars in millions) 2024 2023 The Prudential $ 136 $ 136 Other unaffiliated life insurance company $ 32 $ 34 12. LEASES The Company enters into lease agreements for real estate that is primarily used for office space in the ordinary course of business. These leases are accounted for as operating leases, whereby lease expense is recognized on a straight-line basis over the term of the lease. Most leases include an option to extend or renew the lease term. The exercise of the renewal is at the Company’s discretion. The operating lease liability includes lease payments related to options to extend or renew the lease term if the Company is reasonably certain of exercise those options. The Company, in determining the present value of lease payments utilizes either the rate implicit in the lease if that rate is readily determinable or the Company’s incremental secured borrowing rate commensurate with terms of the underlying lease. Supplemental information related to operating leases is as follows for the periods indicated: Year Ended December 31, (Dollars in millions) 2024 2023 Lease expense incurred: Operating lease cost $ 32 $ 30 At December 31, (Dollars in millions) 2024 2023 Operating lease right of use assets (1) $ 108 $ 123 Operating lease liabilities (1) 126 143 (1) Operating lease right of use assets and operating lease liabilities are included within other assets and other liabilities on the Company’s consolidated balance sheets, respectively. Year Ended December 31, (Dollars in millions) 2024 2023 Operating cash flows from operating leases $ ( 24 ) $ ( 22 ) At December 31, 2024 2023 Weighted average remaining operating lease term 9.2 years 9.8 years Weighted average discount rate on operating leases 4.14 % 4.03 % F-47 Table of Contents Maturities of the existing lease liabilities are expected to occur as follows: (Dollars in millions) As of December 31, 2025 $ 21 2026 20 2027 17 2028 14 2029 13 Thereafter 67 Undiscounted lease payments 152 Less: present value adjustment 25 Total operating lease liability $ 126 (Some amounts may not reconcile due to rounding.) 13. OTHER COMPREHENSIVE INCOME (LOSS) The following table presents the components of other comprehensive income (loss) in the consolidated statements of operations for the periods indicated: Years Ended December 31, 2024 2023 2022 (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) of securities (1) $ ( 167 ) $ 70 $ ( 97 ) $ 843 $ ( 101 ) $ 743 $ ( 2,332 ) $ 295 $ ( 2,037 ) Reclassification of net realized losses (gains) included in net income (loss) (1) ( 18 ) 6 ( 12 ) 285 ( 41 ) 244 107 ( 18 ) 89 Foreign currency translation and other adjustments ( 139 ) 11 ( 128 ) 64 ( 5 ) 59 ( 82 ) 5 ( 77 ) Benefit plan actuarial net gain (loss) 43 ( 9 ) 34 19 ( 4 ) 15 18 ( 4 ) 15 Reclassification of benefit plan liability amortization included in net income (loss) ( 2 ) — ( 1 ) 2 — 2 3 ( 1 ) 2 Total other comprehensive income (loss) $ ( 283 ) $ 79 $ ( 204 ) $ 1,214 $ ( 151 ) $ 1,063 $ ( 2,285 ) $ 277 $ ( 2,008 ) (Some amounts may not reconcile due to rounding.) (1) URA(D) of securities and Reclassification of net realized losses (gains) included in net income (loss) include URA(D) of fixed maturity, available for sale securities and equity method investments. The following table presents details of the amounts reclassified from accumulated other comprehensive income (loss) (“AOCI”) for the periods indicated: Years Ended December 31, Affected line item within the statements of operations and comprehensive income (loss) AOCI component 2024 2023 (Dollars in millions) URA(D) of securities (1) $ ( 18 ) $ 285 Net gains (losses) on investments 6 ( 41 ) Income tax expense (benefit) $ ( 12 ) $ 244 Net income (loss) Benefit plan net gain (loss) $ ( 2 ) $ 2 Other underwriting expenses — — Income tax expense (benefit) $ ( 1 ) $ 2 Net income (loss) (Some amounts may not reconcile due to rounding.) (1) URA(D) of securities includes URA(D) of fixed maturity, available for sale securities and equity method investments. F-48 Table of Contents The following table presents the components of accumulated other comprehensive income (loss), net of tax, in the consolidated balance sheets for the periods indicated: Years Ended December 31, (Dollars in millions) 2024 2023 Beginning balance of URA(D) of securities (1) $ ( 723 ) $ ( 1,709 ) Current period change in URA(D) of securities ( 109 ) 986 Ending balance of URA(D) of securities ( 831 ) ( 723 ) Beginning balance of foreign currency translation and other adjustments ( 195 ) ( 254 ) Current period change in foreign currency translation and other adjustments ( 128 ) 59 Ending balance of foreign currency translation and other adjustments ( 323 ) ( 195 ) Beginning balance of benefit plan net gain (loss) ( 16 ) ( 33 ) Current period change in benefit plan net gain (loss) 33 17 Ending balance of benefit plan net gain (loss) 16 ( 16 ) Ending balance of accumulated other comprehensive income (loss) $ ( 1,138 ) $ ( 934 ) (Some amounts may not reconcile due to rounding.) (1) URA(D) of securities includes URA(D) of fixed maturity, available for sale securities and equity method investments. 14. 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 (“PSU”) awards to officers and key employees of the Company. At December 31, 2024, there were 554,882 remaining shares available to be granted under the 2020 Employee Plan. Through December 31, 2024, only non-qualified share options, restricted share awards and PSU 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, 2024, 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, 2024, there were 264,704 remaining shares available to be granted under the 2003 Director Plan. Options and restricted shares granted under the 2020 Employee Plan prior to January 1, 2024 vest at the earliest of 20 % per year over five years or in accordance with any applicable employment agreement. Restricted shares granted under the 2020 Employee Plan after January 1, 2024 vest at the earliest of 33.3 % per year over three 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. PSU awards granted under the 2020 Employee Plan will vest 100 % after three years . The PSU 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 PSU 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 PSU 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 PSU awards 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 $ 63 million, $ 49 million and $ 45 million for the years ended December 31, 2024, 2023 F-49 Table of Contents and 2022, respectively. The corresponding income tax benefit recorded in the consolidated statements of operations and comprehensive income (loss) for share-based compensation was $ 8 million, $ 7 million and $ 4 million for the years ended December 31, 2024, 2023 and 2022, respectively. For the year ended December 31, 2024, a total of 222,196 shares of restricted stock were granted on February 28, 2024, February 29, 2024, May 15, 2024, September 12, 2024 and November 7, 2024, with a fair value of $ 369.52 , $ 367.04 , $ 377.80 , $ 376.58 and $ 365.61 per share, respectively. Additionally, 18,713 PSU awards were granted on February 28, 2024, with a fair value of $ 369.52 per unit. No share options were granted during the year ended December 31, 2024. 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, 2024, 2023 and 2022, the Company recognized $ 0.6 million, $ 0.5 million and $ 0.6 million, respectively, of additional paid-in capital due to tax benefits from dividends on restricted shares. There have been no stock options granted since 2012. As of December 31, 2024, 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 2022 was $ 10 million. The cash received from the exercised share options during 2022 was $ 4 million. The tax benefit realized from the options exercised during 2022 was $ 2 million. The following table summarizes the status of the Company’s restricted non-vested shares and changes for the periods indicated: Years Ended December 31, 2024 2023 2022 Restricted (non-vested) Shares Shares Weighted- Average Grant Date Fair Value Shares Weighted- Average Grant Date Fair Value Shares Weighted- Average Grant Date Fair Value Outstanding at January 1, 461,537 $ 313.05 479,630 $ 268.82 496,094 $ 247.76 Granted 222,196 369.62 181,646 382.01 203,598 300.38 Vested 147,655 292.15 155,110 261.60 162,579 246.41 Forfeited 68,893 333.54 44,629 297.23 57,483 262.28 Outstanding at December 31, 467,185 343.53 461,537 313.05 479,630 268.82 As of December 31, 2024, there was $ 113 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 2.4 years. The total fair value of shares vested during the years ended December 31, 2024, 2023 and 2022, was $ 43 million, $ 41 million and $ 40 million, respectively. The tax benefit realized from the shares vested for the years ended December 31, 2024, 2023 and 2022 were $ 9 million, $ 11 million and $ 9 million, respectively. In addition to the 2020 Employee Plan, the 2009 Director Plan and the 2003 Director Plan, Group issued 324 common shares in 2024, 447 common shares in 2023 and 774 common shares in 2022 to the Company’s non-employee directors as compensation for their service as directors. These issuances had aggregate values of $ 0.1 million, $ 0.2 million and $ 0.2 million in 2024, 2023 and 2022. The Company acquired 54,537 , 56,832 and 69,833 common shares at a cost of $ 20 million, $ 22 million and $ 21 million in 2024, 2023 and 2022, 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. F-50 Table of Contents The following table summarizes the status of the Company’s non-vested PSU awards and changes for the period indicated: Years Ended December 31, 2024 2023 2022 Performance Share Unit Awards Shares Weighted- Average Grant Date Fair Value Shares Weighted- Average Grant Date Fair Value Shares Weighted- Average Grant Date Fair Value Outstanding at January 1, 51,000 $ — 54,861 $ — 50,495 $ — Granted 18,713 369.52 14,975 382.39 18,340 301.54 Increase/(Decrease) on vesting units due to performance 8,354 — ( 4,063 ) — 3,028 — Vested 24,053 386.81 14,023 340.44 15,919 274.37 Forfeited 1,332 — 750 — 1,083 — Outstanding at December 31, 52,682 — 51,000 — 54,861 — The Company acquired 11,336 , 6,117 and 6,175 common shares at a cost of $ 4 million, $ 2 million and $ 2 million in 2024, 2023 and 2022, respectively, from employees who chose to pay required withholding taxes on PSU settlements by withholding shares. 15. EMPLOYEE BENEFIT PLANS Defined Benefit Pension Plans. 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 the U.S. Internal Revenue Code (the “IRC”) limitations. Effective January 1, 2018, participants of the Company’s non-qualified defined benefit pension plan no longer accrue additional service benefits. Additionally, on November 15, 2023, the Company's Board approved the termination of the qualified defined benefit pension plan. In June 2024, the Company amended the qualified defined benefit pension plan to freeze all benefits accruals and terminate the plan effective June 30, 2024. Plan participants no longer accrue future plan benefits after June 30, 2024. Plan assets consist primarily of shares in investment trusts with 100 % of the underlying assets consisting of short-term investments. The Company manages the qualified plan investments for U.S. employees. Although not required to make contributions under U.S. Internal Revenue Service (the “IRS”) regulations, the following table summarizes the Company’s contributions to the defined benefit pension plans for the periods indicated: Years Ended December 31, (Dollars in millions) 2024 2023 2022 Company contributions $ 3 $ 1 $ 6 The following table summarizes the Company’s pension expense for the periods indicated: Years Ended December 31, (Dollars in millions) 2024 2023 2022 Pension expense $ ( 15 ) $ 5 $ ( 2 ) F-51 Table of Contents The following table summarizes the status of these defined benefit plans for U.S. employees for the periods indicated: Years Ended December 31, (Dollars in millions) 2024 2023 Change in projected benefit obligation: Benefit obligation at beginning of year $ 295 $ 291 Service cost 3 5 Interest cost 14 14 Actuarial (gain)/loss ( 17 ) 9 Curtailment ( 21 ) — Benefits paid ( 15 ) ( 25 ) Projected benefit obligation at end of year 259 295 Change in plan assets: Fair value of plan assets at beginning of year 308 285 Actual return on plan assets 35 48 Actual contributions during the year 3 1 Benefits paid ( 15 ) ( 25 ) Fair value of plan assets at end of year 331 308 Funded status at end of year $ 73 $ 13 (Some amounts may not reconcile due to rounding.) Amounts recognized in the consolidated balance sheets for the periods indicated: At December 31, (Dollars in millions) 2024 2023 Other assets (due beyond one year) $ 76 $ 19 Other liabilities (due within one year) ( 1 ) ( 3 ) Other liabilities (due beyond one year) ( 3 ) ( 3 ) Net amount recognized in the consolidated balance sheets $ 73 $ 13 (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: At December 31, (Dollars in millions) 2024 2023 Accumulated income (loss) $ 9 $ ( 33 ) Accumulated other comprehensive income (loss) $ 9 $ ( 33 ) (Some amounts may not reconcile due to rounding.) F-52 Table of Contents Other changes in other comprehensive income (loss) for the periods indicated are as follows: Years Ended December 31, (Dollars in millions) 2024 2023 Other comprehensive income (loss) at December 31, prior year $ ( 33 ) $ ( 56 ) Net gain (loss) arising during period 51 19 Recognition of amortizations in net periodic benefit cost: Actuarial loss ( 9 ) 4 Curtailment loss recognized — — Other comprehensive income (loss) at December 31, current year $ 9 $ ( 33 ) (Some amounts may not reconcile due to rounding.) Net periodic benefit cost for U.S. employees included the following components for the periods indicated: Years Ended December 31, (Dollars in millions) 2024 2023 2022 Service cost $ 3 $ 5 $ 9 Interest cost 14 14 10 Expected return on assets ( 22 ) ( 19 ) ( 25 ) Amortization of actuarial loss from earlier periods — 4 4 Settlement ( 9 ) — 1 Net periodic benefit cost $ ( 15 ) $ 5 $ ( 2 ) Other changes recognized in other comprehensive income (loss): Other comprehensive income (loss) attributable to change from prior year ( 42 ) ( 23 ) Total recognized in net periodic benefit cost and other comprehensive income (loss) $ ( 57 ) $ ( 18 ) (Some amounts may not reconcile due to rounding.) The weighted average discount rates used to determine net periodic benefit cost for 2024, 2023 and 2022 were 5.00 %, 5.25 % and 2.86 %, respectively. The rate of compensation increase used to determine the net periodic benefit cost for January 2024 through April 2024 was 4.00 %. The net periodic benefit cost was remeasured at May 1, 2024 due to plan curtailment. Rate of compensation increase is not applicable to calculate the net periodic benefit cost for May 2024 through December 2024. The rate of compensation increase used to determine the net periodic benefit cost for 2023 and 2022 was 4.00 %. The expected long-term rate of return on plan assets for 2024, 2023 and 2022 was 7.25 %, 7.00 % and 6.75 % respectively. The weighted average discount rates used to determine the actuarial present value of the projected benefit obligation for 2023 and 2022 were 5.00 % and 5.25 %, respectively. In 2024, the weighted average discount rate used to determine the actuarial present value of the projected benefit obligation, based on plan termination rates, was 4.75 % for annuities and ranged from 4.66 % to 5.57 % for lump sums. The following table summarizes the accumulated benefit obligation for the periods indicated: At December 31, (Dollars in millions) 2024 2023 Qualified Plan $ 255 $ 263 Non-qualified Plan 3 6 Total $ 259 $ 269 (Some amounts may not reconcile due to rounding.) F-53 Table of Contents The following table displays the plans with projected benefit obligations in excess of plan assets for the periods indicated: At December 31, (Dollars in millions) 2024 2023 Non-qualified Plan Projected benefit obligation $ 3 $ 6 Fair value of plan assets — — The following table displays the plans with accumulated benefit obligations in excess of plan assets for the periods indicated: At December 31, (Dollars in millions) 2024 2023 Non-qualified Plan Accumulated benefit obligation $ 3 $ 6 Fair value of plan assets — — The following table displays the expected benefit payments in the periods indicated: (Dollars in millions) 2025 $ 256 2026 1 2027 1 2028 — 2029 — Next 5 years 1 F-54 Table of Contents 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: (Dollars in millions) December 31, 2024 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Short-term investments, which approximates fair value (a) $ 331 $ 331 $ — $ — Total $ 331 $ 331 $ — $ — (Some amounts may not reconcile due to rounding.) (a) This category includes high quality, short-term money market instruments, which are issued and payable in U.S. dollars. Fair Value Measurement Using: (Dollars in millions) December 31, 2023 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Short-term investments, which approximates fair value (a) $ 2 $ 2 $ — $ — Mutual funds, fair value Fixed income (b) 73 73 — — Equities (c) 232 232 — — Total $ 308 $ 308 $ — $ — (Some amounts may not reconcile due to rounding.) (a) This category includes high quality, short-term money market instruments, which are issued and payable in U.S. dollars. (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. equities. No contributions were made to the qualified pension benefit plan for the years ended December 31, 2024 and 2023. Defined Contribution Plans. The Company also maintains both qualified and non-qualified defined contribution plans (“Savings Plan” and “Non-Qualified Savings Plan”, respectively) covering U.S. employees. 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 IRC 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 $ 26 million, $ 22 million and $ 18 million for the years ended December 31, 2024, 2023 and 2022, respectively. In addition, the Company maintains several defined contribution pension plans covering non-U.S. employees. 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 5.3 % to 33.5 %. The contributions are generally used to purchase pension benefits from local insurance providers. The Company incurred expenses related to these plans of $ 9 million, $ 6 million and $ 4 million for the years ended December 31, 2024, 2023 and 2022, respectively. Post-Retirement Plan. 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 F-55 Table of Contents 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 2024 was assumed to decrease gradually to 4.75 % in 2030 and then remain at that level. The Company incurred expenses of $( 0.4 ) million, $( 1 ) million and $ 1 million for the years ended December 31, 2024, 2023 and 2022, respectively. The following table summarizes the status of this plan for the periods indicated: At December 31, (Dollars in millions) 2024 2023 Change in projected benefit obligation: Benefit obligation at beginning of year $ 22 $ 21 Service cost — 1 Interest cost 1 1 Amendments — — Actuarial (gain)/loss ( 1 ) ( 1 ) Benefits paid ( 1 ) — Benefit obligation at end of year 21 22 Change in plan assets: Fair value of plan assets at beginning of year — — Employer contributions 1 — Benefits paid ( 1 ) — Fair value of plan assets at end of year — — Funded status at end of year $ ( 21 ) $ ( 22 ) Amounts recognized in the consolidated balance sheets for the periods indicated: At December 31, (Dollars in millions) 2024 2023 Other liabilities (due within one year) $ ( 1 ) $ ( 1 ) Other liabilities (due beyond one year) ( 21 ) ( 21 ) Net amount recognized in the consolidated balance sheets $ ( 21 ) $ ( 22 ) (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: At December 31, (Dollars in millions) 2024 2023 Accumulated income (loss) $ 11 $ 11 Accumulated prior service credit (cost) — 1 Accumulated other comprehensive income (loss) $ 12 $ 12 F-56 Table of Contents Other changes in other comprehensive income (loss) for the periods indicated are as follows: Years Ended December 31, (Dollars in millions) 2024 2023 Other comprehensive income (loss) at December 31, prior year $ 12 $ 14 Net gain (loss) arising during period 1 1 Prior Service credit (cost) arising during period — — Recognition of amortizations in net periodic benefit cost: Actuarial loss (gain) ( 1 ) ( 2 ) Prior service cost — — Other comprehensive income (loss) at December 31, current year $ 12 $ 12 Net periodic benefit cost included the following components for the periods indicated: Years Ended December 31, (Dollars in millions) 2024 2023 2022 Service cost $ — $ 1 $ 1 Interest cost 1 1 1 Prior service credit recognition — — — Net gain recognition ( 1 ) ( 2 ) — Net periodic cost $ — $ ( 1 ) $ 1 Other changes recognized in other comprehensive income (loss): Other comprehensive gain (loss) attributable to change from prior year 1 2 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ — $ 1 (Some amounts may not reconcile due to rounding.) The weighted average discount rates used to determine net periodic benefit cost for 2024, 2023 and 2022 were 5.00 %, 5.25 % and 2.86 %, respectively. The weighted average discount rates used to determine the actuarial present value of the projected benefit obligation at year-end 2024, 2023 and 2022 were 5.64 %, 5.00 % and 5.25 %, respectively. The following table displays the expected benefit payments in the years indicated: (Dollars in millions) 2025 $ 1 2026 1 2027 1 2028 1 2029 1 Next 5 years 7 16. INCOME TAXES On December 27, 2023, the Government of Bermuda enacted the Corporate Income Tax Act 2023 (“The 2023 Act”), which will apply a 15% corporate income tax to certain Bermuda businesses in fiscal years beginning on or after January 1, 2025. The 2023 Act includes a provision referred to as “The Economic Transition Adjustment” (the “ETA”), which is intended to provide a fair and equitable transition into the new tax regime, and results in a deferred tax benefit for the Company. However, on January 15, 2025, the OECD issued Guidance related to “deferred tax assets arising from tax benefits provided by General Government” whereby it has restricted the utilization of those deferred tax benefits against the computation of its Pillar Two Global Minimum Taxes to approximately 20% of the originally calculated amounts and only for a grace period of two years through 2026. If the Bermuda Ministry of Finance amends The 2023 Act in response F-57 Table of Contents to this Guidance, the exact impact of any such amendments is uncertain but there is a risk that it results in a reduction in the Company's Deferred Tax Assets. 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. Group's U.S. 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. The significant components of the provision are as follows for the periods indicated: Years Ended December 31, (Dollars in millions) 2024 2023 2022 Current tax expense (benefit): U.S. $ 152 $ 284 $ 76 Non-U.S. 19 7 5 Total current tax expense (benefit) 171 291 81 Deferred tax expense (benefit): U.S. ( 52 ) ( 76 ) ( 90 ) Non-U.S. 1 ( 578 ) — Total deferred tax expense (benefit) ( 51 ) ( 654 ) ( 90 ) Total income tax expense (benefit) $ 120 $ ( 363 ) $ ( 9 ) (Some amounts may not reconcile due to rounding.) F-58 Table of Contents 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, 2024 2023 2022 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Underwriting gain (loss) $ ( 891 ) $ 536 $ 533 $ 686 $ ( 81 ) $ 558 Net investment income 1,219 734 954 479 607 223 Net realized capital gains (losses) 34 ( 15 ) ( 190 ) ( 86 ) ( 426 ) ( 29 ) Net derivative gain (loss) — — — 1 — — Corporate expenses ( 19 ) ( 76 ) ( 18 ) ( 55 ) ( 26 ) ( 35 ) Interest, fee and bond issue cost amortization expense ( 150 ) 1 ( 134 ) — ( 101 ) — Other income (expense) 64 57 ( 13 ) ( 3 ) ( 6 ) ( 96 ) Pre-tax income (loss) $ 257 $ 1,237 $ 1,132 $ 1,022 $ ( 32 ) $ 620 Expected tax provision at the applicable statutory rate(s) 54 19 238 26 ( 9 ) — Increase (decrease) in taxes resulting from: Tax exempt income ( 1 ) — ( 3 ) — ( 4 ) — Dividend received deduction ( 3 ) — ( 2 ) — ( 3 ) — Proration 1 — 1 — 1 — Affiliated preferred stock dividends 7 — 7 — 7 — Creditable foreign premium tax ( 14 ) — ( 14 ) — ( 11 ) — Share-based compensation tax benefits formerly in APIC ( 1 ) — ( 3 ) — ( 3 ) — BEAT Tax 66 — — — — — Valuation allowance — — — ( 13 ) — 5 Bermuda corporate income tax — — — ( 578 ) — 5 Insurance corporate-owned life insurance ( 18 ) — ( 13 ) — ( 1 ) — Other 9 1 ( 3 ) ( 6 ) 6 — Total income tax provision $ 100 $ 20 $ 208 $ ( 571 ) $ ( 14 ) $ 5 (Some amounts may not reconcile due to rounding.) At December 31, 2024, 2023 and 2022, 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. In 2023, the IRS issued several insignificant Notice(s) of Proposed Adjustment and then a final Revenue Agent Report (“RAR”). In 2024, the Company responded to the RAR with substantial additional information which the IRS has been processing. The IRS requested, and we have signed, an extension of the audit to December 31, 2025. For tax years 2019 and 2020, the Statute of Limitations has expired and, thus, the Federal income tax return for those years is no longer subject to IRS examination except to the extent the Company files an amended return. Tax years 2021, 2022, and 2023 are open for examination by the U.S. Federal income tax jurisdiction. F-59 Table of Contents 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) 2024 2023 Deferred tax assets: Bermuda economic transition adjustment $ 536 $ 536 Loss reserves 313 270 Unearned premium reserves 152 143 Net unrealized investment losses 138 67 Depreciation 55 44 Unrealized foreign currency losses 35 15 Net operating loss carryforward 24 18 Lease liability 23 27 Foreign tax credits 16 — Capital loss carryforward 14 — Equity compensation 10 8 Investment impairments 10 12 Uncollectible reinsurance reserves — 3 Net unrealized losses on benefit plans — 4 Other assets 21 22 Total deferred tax assets 1,347 1,169 Deferred tax liabilities: Deferred acquisition costs 171 139 Net fair value income 74 74 Partnership investments 43 49 Right of use asset 19 23 Deferred investment income 12 — Benefit plan asset — 3 Other liabilities 13 11 Total deferred tax liabilities 332 299 Net deferred tax assets 1,015 870 Less: Valuation allowance ( 25 ) ( 15 ) Total net deferred tax assets/(liabilities) $ 990 $ 855 (Some amounts may not reconcile due to rounding.) At December 31, 2024 and 2023, the Company had $ 25 million and $ 15 million of Valuation Allowances (“VA”), respectively. The VA is a result of our conclusion under U.S. GAAP accounting principles that the Australia, Colombia, Netherlands, Ireland, Italy, Switzerland, France, Germany, Singapore, Mexico, U.K., 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, 2024, the Company recorded an overall increase in its VA of $ 10 million. Tax effected U.K. Net Operating Losses (“NOLs”) of $ 11 million do not expire. Tax effected Irish NOLs of $ 4 million do not expire. Tax effected Spanish NOLs of $ 2 million do not expire. The remaining tax effected NOLs of $ 8 million arose in various jurisdictions and do not expire. Note that not all NOLs had a VA up against them. At December 31, 2024 and 2023, the Company had $ 16 million and $ 0 million respectively of foreign tax credit (“FTC”) carryforwards. In 2024, there were approximately $ 9 million of U.S. FTCs and $ 7 million of non-US FTCs. The U.S. FTCs expire in 2034. The non-U.S. FTCs do not expire. F-60 Table of Contents At December 31, 2024, $ 138 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, primarily occurring in 2022, were the result of market conditions, including rising interest rates. Ultimate realization of these deferred tax assets depends on the Company’s ability and intent to hold the available for sale securities until they recover their value or mature. As of December 31, 2024, 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 $ 1 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 2024, 2023 and, 2022, 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 $ 0.7 million , $ 0.6 million and $ 0.6 million in 2024, 2023 and 2022, respectively. 17. 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 (the “BMA”) and Everest Re is subject to the Risk-Based Capital Model (“RBC”) developed by the U.S. National Association of Insurance Commissioners (“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 $ 4.3 billion and $ 3.7 billion at December 31, 2024 and 2023, respectively. The statutory net income of Bermuda Re was $ 1.4 billion, $ 1.5 billion and $ 603 million for the years ended December 31, 2024, 2023 and 2022, 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 F-61 Table of Contents December 31, 2024, the maximum amount that will be available for the payment of dividends by Everest Re without triggering the requirement for prior approval of regulatory authorities in connection with a dividend is $ 813 million. 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 $ 8.1 billion and $ 7.0 billion at December 31, 2024 and 2023, respectively. The statutory net income of Everest Re was $ 74 million, $ 877 million and $ 294 million for the years ended December 31, 2024, 2023 and 2022. 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) 2024⁽³⁾ 2023 2024 2023 Regulatory targeted capital $ — $ 2,669 $ 4,799 $ 4,242 Actual capital $ 4,323 $ 3,711 $ 8,126 $ 6,963 (1) Regulatory targeted capital represents the target capital level from the applicable year's BSCR calculation. (2) Regulatory targeted capital represents 200% of the RBC authorized control level calculation for the applicable year. (3) The 2024 BSCR calculation is not yet due to be completed; however, the Company anticipates that Bermuda Re's December 31, 2024 actual capital will exceed the targeted capital level. In accordance with guidance issued by the BMA in 2025, Bermuda Re has reflected the impacts of the ETA recognized in response to The 2023 Act in its 2024 regulatory targeted capital and actual capital. 18. SUBSEQUENT EVENTS The Company has evaluated known recognized and non-recognized subsequent events. In January 2025, wildfires impacted Southern California. The Company is estimating pre-tax net catastrophe losses to be in the range of $ 350 to $ 450 million for the first quarter 2025, net of any estimated recoveries or reinstatement premiums. The Company does not have any other subsequent events to report. F-62 Table of Contents SCHEDULE I — SUMMARY OF INVESTMENTS — OTHER THAN INVESTMENTS IN RELATED PARTIES December 31, 2024 Column A Column B Column C Column D (Dollars in millions) Cost Fair Value Amount Shown in Balance Sheet Fixed maturities - available for sale Bonds: U.S. government and government agencies $ 688 $ 669 $ 669 State, municipalities and political subdivisions 75 70 70 Foreign government securities 2,330 2,196 2,196 Foreign corporate securities 6,099 5,861 5,861 Public utilities 449 424 424 All other corporate bonds 12,369 12,105 12,105 Mortgage - backed securities: Commercial 965 900 900 Agency residential 5,205 4,931 4,931 Non-agency residential 1,291 1,289 1,289 Redeemable preferred stock 464 464 464 Total fixed maturities-available for sale 29,934 28,908 28,908 Fixed maturities - held to maturity Bonds: Foreign corporate securities 84 86 83 Public utilities 4 5 4 All other corporate bonds 656 647 650 Mortgage - backed securities: Commercial 21 21 20 Total fixed maturities-held to maturity 765 759 757 Equity securities - at fair value (1) 212 217 217 Short-term investments 4,707 4,707 4,707 Other invested assets 5,392 5,392 5,392 Cash 1,549 1,549 1,549 Total investments and cash $ 42,560 $ 41,533 $ 41,531 (Some amounts may not reconcile due to rounding.) (1) Original cost does not reflect fair value adjustments, which have been realized through the statements of operations and comprehensive income (loss). S-1 SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF THE REGISTRAN T CONDENSED BALANCE SHEETS December 31, (Dollars and share amounts in millions, except par value per share) 2024 2023 ASSETS: Other invested assets (cost: 2024, $ 63 ; 2023, $ 38 ) $ 63 $ 38 Short-term investments 8 — Cash 5 9 Investment in subsidiaries, at equity in the underlying net assets 15,329 14,832 Long-term notes receivable, affiliated 600 50 Accrued investment income — 2 Receivable from subsidiaries 17 13 Other assets 37 46 TOTAL ASSETS $ 16,059 $ 14,989 LIABILITIES: Long-term notes payable, affiliated $ 2,173 $ 1,773 Due to subsidiaries 9 8 Other liabilities 2 6 Total liabilities 2,184 1,787 SHAREHOLDERS' EQUITY: Preferred shares, par value: $ 0.01 ; 50.0 shares authorized; no shares issued and outstanding — — Common shares, par value: $ 0.01 ; 200.0 shares authorized; (2024) 74.3 and (2023) 74.2 outstanding before treasury shares 1 1 Additional paid-in capital 3,812 3,773 Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) of ($ 177 ) at 2024 and $( 99 ) at 2023 ( 1,138 ) ( 934 ) Treasury shares, at cost; 31.3 shares (2024) and 30.8 shares (2023) ( 4,108 ) ( 3,908 ) Retained earnings 15,309 14,270 Total shareholders' equity 13,875 13,202 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 16,059 $ 14,989 (Some amounts may not reconcile due to rounding.) See notes to consolidated financial statements. S-2 SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT CONDENSED STATEMENTS OF OPERATIONS Years Ended December 31, 2024 2023 2022 (Dollars in millions) REVENUES: Net investment income $ 5 $ 4 $ — Other income (expense) 7 8 — Net income (loss) of subsidiaries 1,510 2,641 648 Total revenues 1,522 2,653 648 EXPENSES: Interest expense - affiliated 77 87 13 Other expenses 71 49 38 Total expenses 148 136 51 INCOME (LOSS) BEFORE TAXES 1,373 2,517 597 NET INCOME (LOSS) $ 1,373 $ 2,517 $ 597 Other comprehensive income (loss) of subsidiaries, net of tax ( 204 ) 1,063 ( 2,008 ) COMPREHENSIVE INCOME (LOSS) $ 1,169 $ 3,580 $ ( 1,411 ) (Some amounts may not reconcile due to rounding.) See notes to consolidated financial statements. S-3 SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, (Dollars in millions, except share amounts) 2024 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 1,373 $ 2,517 $ 597 Adjustments to reconcile net income to net cash provided by operating activities: Equity in retained (earnings) deficit of subsidiaries ( 1,510 ) ( 2,641 ) ( 648 ) Cash dividends received from subsidiaries 969 365 476 Change in other assets and liabilities, net 7 ( 8 ) 28 Increase (decrease) in due to/from affiliates ( 3 ) 2 2 Non-cash compensation expense 2 3 2 Net cash provided by (used in) operating activities 839 238 457 CASH FLOWS FROM INVESTING ACTIVITIES: Additional investment in subsidiaries ( 161 ) ( 377 ) ( 824 ) Proceeds from fixed maturities sold - available for sale — 23 — Distribution from other invested assets 826 441 237 Cost of fixed maturities acquired - available for sale — ( 23 ) — Cost of other invested assets acquired ( 852 ) ( 479 ) ( 26 ) Net change in short-term investments ( 8 ) — — Proceeds from repayment of long term notes receivable - affiliated 50 50 — (Issuance) of long term notes receivable - affiliated ( 600 ) ( 100 ) — Net cash provided by (used in) investing activities ( 745 ) ( 465 ) ( 613 ) CASH FLOWS FROM FINANCING ACTIVITIES: Common shares issued during the period, net 36 23 26 Proceeds from public offering of common shares — 1,445 — Purchase of treasury shares ( 200 ) — ( 61 ) Dividends paid to shareholders ( 334 ) ( 288 ) ( 255 ) Proceeds from issuance (cost of repayment) of long term notes payable - affiliated 400 ( 965 ) 465 Net cash provided by (used in) financing activities ( 98 ) 215 175 EFFECT OF EXCHANGE RATE CHANGES ON CASH — — — Net increase (decrease) in cash ( 4 ) ( 13 ) 19 Cash, beginning of period 9 22 3 Cash, end of period $ 5 $ 9 $ 22 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 — — 1,773 Capital contribution of 9,719,971 shares of Group common stock provided from Group to Everest Re Advisors, Ltd. — — 3,178 (Some amounts may not reconcile due to rounding.) See notes to consolidated financial statements. S-4 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. 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. 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. 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. 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. 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, 2024, 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 and $ 50 million in May 2024 and the note is no longer outstanding as of December 31, 2024. 9.) Everest Group, Ltd. issued a $ 600 million long-term note agreement to Everest Reinsurance Holdings, Inc., an affiliated company, as of December 2024. The note will pay interest annually at a rate of 4.30 % and is scheduled to mature in December 2027. At December 31, 2024, this transaction was included within long-term notes receivable, affiliated in the condensed balance sheets of Everest Group, Ltd. 10.) Everest Group, Ltd. entered into a $ 100 million long-term note agreement with Everest International Reinsurance, an affiliated company, as of December 2024. The note will pay interest annually at a rate of 4.30 % and is scheduled to mature in December 2027. At December 31, 2024, this transaction was included within long-term notes payable, affiliated in the condensed balance sheets of Everest Group, Ltd. 11.) Everest Group, Ltd. entered into a $ 300 million long-term note agreement with Everest Reinsurance Bermuda, an affiliated company, as of December 2024. The note will pay interest annually at a rate of 4.30 % and is scheduled to mature in December 2027. At December 31, 2024, this transaction was included within long-term notes payable, affiliated in the condensed balance sheets of Everest Group, Ltd. 12.) Everest Group, Ltd. has invested funds in the segregated accounts of Mt. Logan Re, an affiliated entity. On the condensed balance sheets, investments in Mt. Logan Re valued at $ 39 million and $ 46 million as of December 31, S-5 2024 and 2023, respectively, have been recorded within other assets. On the condensed statements of operations, income (expense) of $ 8 million, $ 8 million and $( 1 ) million for the years ended December 31, 2024, 2023 and 2022, respectively, have been recorded in other income (expense). S-6 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 Deferred Acquisition Costs Reserve for Losses and Loss Adjustment Expenses Unearned Premium Reserves Premiums Earned Net Investment Income Incurred Loss and Loss Adjustment Expenses Amortization of Deferred Acquisition Costs Other Operating Expenses Net Written Premium Segment (Dollars in millions) As of and Year Ended December 31, 2024 Reinsurance $ 1,185 $ 19,708 $ 4,621 $ 11,412 $ 1,255 $ 7,103 $ 2,837 $ 290 $ 11,969 Insurance 270 8,841 2,635 3,579 605 3,622 439 615 3,678 Other 6 1,340 68 197 94 580 24 33 167 Total $ 1,461 $ 29,889 $ 7,324 $ 15,187 $ 1,954 $ 11,305 $ 3,300 $ 938 $ 15,814 As of and Year Ended December 31, 2023 Reinsurance $ 967 $ 17,327 $ 4,009 $ 9,799 $ 984 $ 5,690 $ 2,520 $ 254 $ 10,802 Insurance 271 6,338 2,504 3,420 391 2,471 410 556 3,704 Other 9 939 109 225 59 266 22 35 225 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 $ 708 $ 15,756 $ 2,881 $ 8,596 $ 574 $ 5,962 $ 2,116 $ 216 $ 8,917 Insurance 243 5,438 2,153 2,998 219 2,040 399 438 3,223 Other 11 871 113 194 37 98 14 28 204 Total $ 962 $ 22,065 $ 5,147 $ 11,787 $ 830 $ 8,100 $ 2,528 $ 682 $ 12,344 (Some amounts may not reconcile due to rounding.) S-7 SCHEDULE IV — REINSURANCE Column A Column B Column C Column D Column E Column F (Dollars in millions) Gross Amount Ceded to Other Companies Assumed from Other Companies Net Amount Assumed to Net December 31, 2024 Total property and liability insurance premiums earned $ 4,977 $ 2,248 $ 12,458 $ 15,187 82.0 % 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 % S-8