XML 29 R12.htm IDEA: XBRL DOCUMENT

Credit Facilities

12 Months Ended

Dec. 31, 2021

5. CREDIT FACILITIES

The Company has multiple active letter of credit facilities for a total commitment of up to $1.2 billion as of December 31, 2021, providing for the issuance of letters of credit. The Company also has additional uncommitted letter of credit facilities of up to $340.0 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 following table presents the interest and fees incurred in connection with these committed credit facilities for the periods indicated:

	Years Ended December 31,
(Dollars in thousands)	2021		2020		2019
Credit facility interest and fees incurred - Wells Fargo Bank	$	175	$	664	$	420

The terms and outstanding amounts for each facility are discussed below:

Group Credit Facility

Effective May 26, 2016, Group, Everest Reinsurance (Bermuda), Ltd. (“Bermuda Re”) and Everest International Reinsurance, Ltd. (“Everest International”), both direct subsidiaries of Group, entered into a five year, $800.0 million senior credit facility with a syndicate of lenders, which amended and restated in its entirety the June 22, 2012, four year, $800.0 million senior credit facility. Both the May 26, 2016 and June 22, 2012 senior credit facilities, which have similar terms, are referred to as the “2016 Group Credit Facility”. Wells Fargo Corporation (“Wells Fargo Bank”) is the administrative agent for the 2016 Group Credit Facility.

Effective May 26, 2021, the term of the 2016 Group Credit Facility expired. The Company elected not to renew this facility to allow for the replacement by other collateralized letter of credit facilities such as those described below. As a result of the non-renewal in May 2021, letter of credit commitment/availability in the 2016 Group Credit Facility as of December 21, 2021 is limited only to the remaining $39.2 million of letters of credit currently in force and scheduled to expire in 2022. No additional letters of credit will be issued under the 2016 Group Credit Facility, and the facility will be dormant once the remaining letters of credit have expired. As of December 31, 2021, the Company was in compliance with all Group Credit Facility covenants.

On March 25, 2020, Group borrowed $50.0 million under Tranche one of the credit facility as an unsecured revolving credit loan. The loan was fully paid off on June 26, 2020. There were no revolving credit borrowings from the facility during the year ended 2019.

The following table summarizes the outstanding letters of credit for the periods indicated:

(Dollars in thousands)	At December 31, 2021					At December 31, 2020
Bank	Commitment		In Use		Date of Expiry	Commitment		In Use		Date of Expiry
Wells Fargo Bank Group Credit Facility	$	39,198	$	39,198	12/30/2022	$	200,000	$	164,242	12/31/2021
				-			600,000		589,690	12/31/2021
Total Wells Fargo Bank Group Credit Facility	$	39,198	$	39,198		$	800,000	$	753,932

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 “2021 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 $50.0 million of secured letters of credit. Effective May 5, 2021, the agreement was amended to provide for the issuance of up to $500.0 million of secured letters of credit.

The following table summarizes the outstanding letters of credit for the periods indicated:

(Dollars in thousands)	At December 31, 2021
Bank	Commitment		In Use		Date of Expiry
Bermuda Re Wells Fargo Bank Bilateral Letter of Credit Facility	$	500,000	$	351,497	12/30/2022
Total Bermuda Re Wells Fargo Bank Bilateral Letter of Credit Facility	$	500,000	$	351,497

Bermuda Re Citibank Letter of Credit Facility

Effective August 9, 2021, Bermuda Re entered into a new letter of credit issuance facility with Citibank N.A. which superseded the previous letter of credit issuance facility with Citibank that was effective December 31, 2020. Both of these are referred to as the “Bermuda Re Letter of Credit Facility”. The current Bermuda Re Citibank Letter of Credit Facility provides for the committed issuance of up to $230.0 million of secured letters of credit. In addition, the facility provided for the uncommitted issuance of up to $140.0 million, which may be accessible via written request by the Company and corresponding authorization from Citibank N.A.

The following table summarizes the outstanding letters of credit for the periods indicated:

(Dollars in thousands)	At December 31, 2021					At December 31, 2020
Bank	Commitment		In Use		Date of Expiry	Commitment		In Use		Date of Expiry
Bermuda Re Citibank LOC Facility- Committed	$	230,000	$	4,425	02/28/2022	$	200,000	$	4,425	02/28/2021
				925	03/01/2022				3,672	11/24/2021
				1,264	11/24/2022				448	12/16/2021
				423	12/16/2022				115	12/20/2021
				146	12/20/2022				136,383	12/31/2021
				216,622	12/31/2022				39,619	12/30/2024
				473	01/21/2023				821	08/15/2022
				985	08/15/2023				-
				1,234	09/23/2023				-
Bermuda Re Citibank LOC Facility - Uncommitted		140,000		84,203	12/31/2022				-
				22,731	12/30/2025				-
Total Bermuda Re Citibank LOC Facility	$	370,000	$	333,429		$	200,000	$	185,483

Everest International Lloyds Bank Credit Facility

Effective May 12, 2020, Everest International had amended its credit facility with Lloyds Bank plc (“Everest International Credit Facility”). The amendment of the Everest International Credit Facility provided up to £52.2 million for the issuance of standby letters of credit on a collateralized basis.

However, the Everest International Credit Facility was terminated effective December 20, 2021. As a result, the Everest International Credit Facility no longer has any letter of credit commitment or availability as of that date, and there are no remaining letters of credit in force under the facility.

The following table summarizes the outstanding letters of credit for the periods indicated:

(Dollars in thousands)	At December 31, 2021					At December 31, 2020
Bank	Commitment		In Use		Date of Expiry	Commitment		In Use		Date of Expiry
Everest International Credit Facility	£	-	£	-		£	52,175	£	52,175	12/31/2024
Total Everest International Credit Facility	£	-	£	-		£	52,175	£	52,175

Bermuda Re Bayerische Landesbank Bilateral 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 Credit Facility”. The Bermuda Re Bayerische Landesbank Bilateral Credit Facility provides for the committed issuance of up to $200.0 million of secured letters of credit.

(Dollars in thousands)	At December 31, 2021
Bank	Commitment		In Use		Date of Expiry
Bermuda Re Bayerische Landesbank Bilateral Letter of Credit Facility	$	200,000	$	154,691	12/31/2022
Total Bermuda Re Bayerische Landesbank Bilateral Letter of Credit Facility	$	200,000	$	154,691

(Dollars in thousands)	At December 31, 2021
Bank	Commitment		In Use		Date of Expiry
Bermuda Re Lloyd's Bank Credit Facility	$	50,000	$	46,008	12/31/2022
Total Bermuda Re Lloyd's Bank Credit Facility	$	50,000	$	46,008

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 $200.0 million of secured letters of credit.

(Dollars in thousands)	At December 31, 2021
Bank	Commitment		In Use		Date of Expiry
Bermuda Re Barclays Bilateral Letter of Credit Facility	$	200,000	$	186,299	12/31/2022
Total Bermuda Re Barclays Bilateral Letter of Credit Facility	$	200,000	$	186,299

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, 2021, Everest Re had admitted assets of approximately $20.3 billion which provides borrowing capacity of up to approximately $2.0 billion. As of December 31, 2021, Everest Re has $519.0 million of borrowings outstanding, with maturities in 2022 and interest payable at interest rates between 0.53% and 0.65%. Everest incurred interest expense of $1.2 million and $0.2 million for the years ended December 31, 2021 and 2020, respectively. The FHLBNY membership agreement requires that 4.5% of borrowed funds be used to acquire additional membership stock.