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Credit Facilities

3 Months Ended

Mar. 31, 2022

Credit Facilities [Abstract]

Credit Facilities

9. CREDIT FACILITIES

The Company has multiple active letter of credit facilities for a total commitment of up to $1.2 billion as of March 31, 2022. 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 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 March 31, 2022 is limited only to the remaining $13.3 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 March 31, 2022, the Company was in compliance with all Group Credit Facility covenants.

The following table summarizes the outstanding letters of credit and/or borrowings for the periods indicated:

(Dollars in thousands)					At March 31, 2022								At December 31, 2021
Bank				Commitment			In Use			Date of Expiry		Commitment			In Use			Date of Expiry
Wells Fargo Bank Group Credit Facility				$	13,319		$	13,319		12/30/2022		$	39,198		$	39,198		12/30/2022
Total Wells Fargo Bank Group Credit Facility				$	13,319		$	13,319				$	39,198		$	39,198

Bermuda Re Wells Fargo 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 Letter of Credit Facility.” The Bermuda Re Wells Fargo 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 March 31, 2022								At December 31, 2021
Bank		Commitment			In Use			Date of Expiry		Commitment			In Use			Date of Expiry
Wells Fargo Bank Bilateral LOC Agreement		$	500,000		$	422,521		12/30/2022		$	500,000		$	351,497		12/30/2022
Total Wells Fargo Bank Bilateral LOC Agreement		$	500,000		$	422,521				$	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 N.A. that was effective December 31, 2020. Both of these agreements are referred to as the “Bermuda Re Citibank 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 the $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 March 31, 2022								At December 31, 2021
Bank		Commitment			In Use			Date of Expiry		Commitment			In Use			Date of Expiry
Bermuda Re Citibank LOC Facility- Committed		$	230,000		$	425		12/16/22		$	230,000		$	4,425		02/28/22
						218,377		12/31/22						925		03/01/22
						473		01/21/23						1,264		11/24/22
						4,425		02/28/23						423		12/16/22
						1,088		03/01/23						146		12/20/22
						990		08/15/23						216,622		12/31/22
						1,240		09/23/23						473		01/21/23
						147		12/20/23						985		08/15/23
						–								1,234		09/23/23
Bermuda Re Citibank LOC Facility - Uncommitted			140,000			84,203		12/31/22			140,000			84,203		12/31/22
						22,233		03/30/26						22,731		12/30/25
Total Citibank Bilateral Agreement		$	370,000		$	333,600				$	370,000		$	333,429

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

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

(Dollars in thousands)		At March 31, 2022								At December 31, 2021
Bank		Commitment			In Use			Date of Expiry		Commitment			In Use			Date of Expiry
Bayerische Landesbank Bilateral LOC Agreement		$	200,000		$	156,197		12/31/2022		$	200,000		$	154,691		12/31/2022
Total Bayerische Landesbank Bilateral LOC Agreement		$	200,000		$	156,197				$	200,000		$	154,691

Bermuda Re Lloyd’s Bank Credit Facility.

Effective October 8, 2021 Bermuda Re entered into a letter of credit issuance facility with Lloyd’s Bank Corporate Markets PLC, an agreement referred to as the “Bermuda Re Lloyd’s Bank Credit Facility”. The Bermuda Re Lloyd’s Bank Credit Facility provides for the committed issuance of up to $50.0 million of secured letters of credit, and subject to credit approval a maximum total facility amount of $250.0 million.

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

(Dollars in thousands)		At March 31, 2022								At December 31, 2021
Bank		Commitment			In Use			Date of Expiry		Commitment			In Use			Date of Expiry
Bermuda Re Lloyd's Bank Credit Facility-Committed		$	50,000		$	46,008		12/31/2022		$	50,000		$	46,008		12/31/2022
Bermuda Re Lloyd's Bank Credit Facility-Uncommitted			200,000			84,806		12/31/2022			-			-
Total Bermuda Re Lloyd's Bank Credit Facility		$	250,000		$	130,814				$	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.

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

(Dollars in thousands)		At March 31, 2022								At December 31, 2021
Bank		Commitment			In Use			Date of Expiry		Commitment			In Use			Date of Expiry
Bermuda Re Barclays Bilateral Letter of Credit Facility		$	200,000		$	171,628		12/31/2022		$	200,000		$	186,299		12/31/2022
Total Bermuda Re Barclays Bilateral Letter of Credit Facility		$	200,000		$	171,628				$	200,000		$	186,299

Federal Home Loan Bank Membership

Everest Reinsurance Company (“Everest Re”) is a member of the Federal Home Loan Bank of New York (“FHLBNY”), which allows Everest Re to borrow up to 10% of its statutory admitted assets. As of March 31, 2022, Everest Re had admitted assets of approximately $20.4 billion which provides borrowing capacity of up to approximately $2.0 billion. As of March 31, 2022, Everest Re has $519.0 million of borrowings outstanding, with maturities in November and December, 2022, and interest payable at interest rates between 0.53% and 0.65%. Everest Re incurred interest expense of $0.7 million and $0.3 million for the three months ended March 31, 2022 and 2021, respectively. The FHLBNY membership agreement requires that 4.5% of borrowed funds be used to acquire additional membership stock.