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CREDIT FACILITIES | 3 Months Ended
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Mar. 31, 2023
Line of Credit Facility [Abstract] |
CREDIT FACILITIES AND SENIOR NOTES | CREDIT FACILITIES The Company has multiple active letter of credit facilities for a total commitment of up to $1.5 billion as of March 31, 2023. The Company also has additional uncommitted letter of credit facilities of up to $440 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: 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 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. The following table summarizes the outstanding letters of credit for the periods indicated:
(Dollars in millions) |  | At March 31, 2023 |  | At December 31, 2022
Bank |  | Commitment |  | In Use |  | Date of Expiry |  | Commitment |  | In Use |  | Date of Expiry
Wells Fargo Bank Bilateral LOC Agreement |  | $ | 500 |  |  | $ | 445 |  |  | 12/29/2023 |  | $ | 500 |  |  | $ | 463 |  |  | 12/29/2023
(Some amounts may not reconcile due to rounding.) 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Effective August 9, 2021, Bermuda Re entered into a new letter of credit issuance facility with Citibank N.A. which superseded the previous letter of credit issuance facility with Citibank that was effective December 31, 2020.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 million of secured letters of credit. In addition, the facility provided for the uncommitted issuance of up the $140 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 millions) |  | At March 31, 2023 |  | At December 31, 2022
Bank |  | Commitment |  | In Use |  | Date of Expiry |  | Commitment |  | In Use |  | Date of Expiry
Bermuda Re Citibank LOC Facility- Committed |  | $ | 230 |  |  | $ | 1 |  |  | 8/15/2023 |  | $ | 230 |  |  | $ | 1 |  |  | 1/1/2023
|  | — |  |  | 3 |  |  | 9/23/2023 |  | — |  |  | 4 |  |  | 2/28/2023
|  | — |  |  | 217 |  |  | 12/31/2023 |  | — |  |  | 1 |  |  | 3/1/2023
|  | — |  |  | 4 |  |  | 2/29/2024 |  | — |  |  | 1 |  |  | 8/15/2023
|  | — |  |  | 1 |  |  | 3/1/2024 |  | — |  |  | 3 |  |  | 9/23/2023
|  | — |  |  | 1 |  |  | 12/1/2024 |  | — |  |  | 212 |  |  | 12/31/2023
Bermuda Re Citibank LOC Facility - Uncommitted |  | 140 |  |  | 106 |  |  | 12/31/2023 |  | 140 |  |  | 87 |  |  | 12/31/2023
|  | — |  |  | 18 |  |  | 3/30/2027 |  | — |  |  | 18 |  |  | 12/30/2026
Total Citibank Bilateral Agreement |  | $ | 370 |  |  | $ | 353 |  |  |  |  | $ | 370 |  |  | $ | 329 |  |  |
(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 Bayerische Landesbank Bilateral Secured Credit Facility provides for the committed issuance of up to $200 million of secured letters of credit. The following table summarizes the outstanding letters of credit for the periods indicated:
(Dollars in millions) |  | At March 31, 2023 |  | At December 31, 2022
Bank |  | Commitment |  | In Use |  | Date of Expiry |  | Commitment |  | In Use |  | Date of Expiry
Bayerische Landesbank Bilateral Secured Credit Facility |  | $ | 200 |  |  | $ | 175 |  |  | 12/31/2023 |  | $ | 200 |  |  | $ | 183 |  |  | 12/31/2023
(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 “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. The following table summarizes the outstanding letters of credit for the periods indicated:
(Dollars in millions) |  | At March 31, 2023 |  | At December 31, 2022
Bank |  | Commitment |  | In Use |  | Date of Expiry |  | Commitment |  | In Use |  | Date of Expiry
Bayerische Landesbank Bilateral Unsecured LOC Agreement - Committed |  | $ | 150 |  |  | $ | 150 |  |  | 12/31/2023 |  | $ | 150 |  |  | $ | 150 |  |  | 12/31/2023
(Some amounts may not reconcile due to rounding.) 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 million of secured letters of credit, and subject to credit approval a maximum total facility amount of $250 million. The following table summarizes the outstanding letters of credit for the periods indicated:
(Dollars in millions) |  | At March 31, 2023 |  | At December 31, 2022
Bank |  | Commitment |  | In Use |  | Date of Expiry |  | Commitment |  | In Use |  | Date of Expiry
Bermuda Re Lloyd's Bank Credit Facility-Committed |  | $ | 50 |  |  | $ | 50 |  |  | 12/31/2023 |  | $ | 50 |  |  | $ | 50 |  |  | 12/31/2023
Bermuda Re Lloyd's Bank Credit Facility-Uncommitted |  | 200 |  |  | 156 |  |  | 12/31/2023 |  | 200 |  |  | 136 |  |  | 45291
Total Bermuda Re Lloyd's Bank Credit Facility |  | $ | 250 |  |  | $ | 206 |  |  |  |  | $ | 250 |  |  | $ | 186 |  |  |
(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. The following table summarizes the outstanding letters of credit for the periods indicated:
(Dollars in millions) |  | At March 31, 2023 |  | At December 31, 2022
Bank |  | Commitment |  | In Use |  | Date of Expiry |  | Commitment |  | In Use |  | Date of Expiry
Bermuda Re Barclays Bilateral Letter of Credit Facility |  | $ | 200 |  |  | $ | 179 |  |  | 12/31/2023 |  | $ | 200 |  |  | $ | 179 |  |  | 12/31/2023
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 March 31, 2023 |  | At December 31, 2022
Bank |  | Commitment |  | In Use |  | Date of Expiry |  | Commitment |  | In Use |  | Date of Expiry
Nordea Bank ABP, NY Unsecured LOC Facility - Committed |  | $ | 200 |  |  | $ | 200 |  |  | 12/31/2023 |  | $ | 200 |  |  | $ | 50 |  |  | 12/31/2023
Nordea Bank ABP, NY Unsecured LOC Facility - Uncommitted |  | 100 |  |  | 100 |  |  | 12/31/2023 |  | 100 |  |  | 100 |  |  | 12/31/2023
Total Nordea Bank ABP, NY LOC Facility |  | $ | 300 |  |  | $ | 300 |  |  |  |  | $ | 300 |  |  | $ | 150 |  |  |
(Some amounts may not reconcile due to rounding.) 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, 2023, Everest Re had admitted assets of approximately $23.1 billion which provides borrowing capacity of up to approximately $2.3 billion. As of March 31, 2023, Everest Re has $519 million of borrowings outstanding, all of which expire in 2023. Everest Re incurred interest expense of $6 million and $0.7 million for the three months ended March 31, 2023 and 2022, respectively. The FHLBNY membership agreement requires that 4.5% of borrowed funds be used to acquire additional membership stock. SENIOR NOTES The table below displays Everest Reinsurance Holdings’ (“Holdings”) outstanding senior notes. Fair value is based on quoted market prices, but due to limited trading activity, these senior notes are considered Level 2 in the fair value hierarchy.
|  |  |  |  |  |  | March 31, 2023 |  | December 31, 2022
(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 |  |  | $ | 397 |  |  | $ | 373 |  |  | $ | 397 |  |  | $ | 343 |
3.5% Senior notes | 10/7/2020 |  | 10/15/2050 |  | 1,000 |  |  | 981 |  |  | 728 |  |  | 981 |  |  | 677 |
3.125% Senior notes | 10/4/2021 |  | 10/15/2052 |  | 1,000 |  |  | 969 |  |  | 677 |  |  | 969 |  |  | 627 |
|  |  |  |  | $ | 2,400 |  |  | $ | 2,348 |  |  | $ | 1,778 |  |  | $ | 2,347 |  |  | $ | 1,647 |
(Some amounts may not reconcile due to rounding.) Interest expense incurred in connection with these senior notes is as follows for the periods indicated:
|  |  |  |  |  |  | Three Months Ended March 31,
(Dollars in millions) | Interest Paid |  | Payable Dates |  |  |  |  |  | 2023 |  | 2022
4.868% Senior notes | semi-annually |  | June 1/ December 1 |  |  |  |  |  | $ | 5 |  |  | $ | 5 |
3.5% Senior notes | semi-annually |  | April 15/October 15 |  |  |  |  |  | 9 |  |  | 9 |
3.125% Senior notes | semi-annually |  | April 15/October 15 |  |  |  |  |  | 8 |  |  | 8 |
|  |  |  |  |  |  |  |  | $ | 22 |  |  | $ | 22 |
(Some amounts may not reconcile due to rounding.)

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI https://asc.fasb.org/topic&trid=2208564 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (h) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (g) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1E -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (i) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 + Details
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