
	Years Ended December 31,
(Dollars in millions)	2023		2022		2021
Gross reserves beginning of period	$	22,065	$	19,009	$	16,322
Less reinsurance recoverables on unpaid losses	(2,105)		(1,946)		(1,844)
Net reserves beginning of period	19,960		17,063		14,478

Incurred related to:
Current year	8,432		8,102		7,400
Prior years	(5)		(2)		(9)
Total incurred losses and LAE	8,427		8,100		7,391

Paid related to:
Current year	1,379		1,220		2,491
Prior years	4,731		3,740		2,226
Total paid losses and LAE	6,110		4,960		4,717

Foreign exchange/translation adjustment	229		(243)		(89)

Net reserves end of period	22,506		19,960		17,063
Plus reinsurance recoverables on unpaid losses	2,098		2,105		1,946
Gross reserves end of period	$	24,604	$	22,065	$	19,009

Current year incurred losses were $8.4 billion, $8.1 billion and $7.4 billion in 2023, 2022 and 2021, respectively. The increase in current year incurred losses from 2022 to 2023 was primarily related to an increase of $916 million in current year attritional losses, resulting from the impact of the increase in premiums earned and changes in the mix of business, partially offset by a decrease of $585 million in current year catastrophe losses.

The recent emergence of the Middle East war and the ongoing war in the Ukraine are evolving events. Economic and legal sanctions have been levied against Russia, specific named individuals and entities connected to the Russian government, as well as businesses located in the Russian Federation and/or owned by Russian nationals in numerous countries, including the United States. The significant political and economic uncertainty surrounding these wars and

Incurred prior years favorable development in losses were $5 million in 2023, $2 million in 2022 and $9 million in 2021. The net favorable development on prior year reserves of $5 million in 2023 is comprised of $397 million of favorable development on prior years attritional losses for reinsurance lines, mainly related to mortgage and short-tail lines of business, mostly offset by $392 million of unfavorable development on prior years attritional losses for insurance lines, mainly related to casualty lines for accident years from 2016 through 2019. The favorable development on prior year reserves of $2 million in 2022 is primarily driven by better than expected loss emergence in workers’ compensation and surety lines of business, as well as attritional property. The favorable development on prior year reserves of $9 million in 2021 is primarily driven by a commutation and reserve releases within the Reinsurance segment.

The following is information about incurred and paid claims development as of December 31, 2023, net of reinsurance, as well as cumulative claim frequency and the total of incurred but not reported liabilities (IBNR) plus expected development on reported claims included within the net incurred claims amounts. Each of the Company’s financial reporting segments has been disaggregated into casualty and property business. The casualty and property segregation results in groups that have homogeneous loss development characteristics and are large enough to represent credible trends. Generally, casualty claims take longer to be reported and settled, resulting in longer payout patterns and increased volatility. Property claims on the other hand, tend to be reported and settled quicker and therefore tend to exhibit less volatility. The property business is more exposed to catastrophe losses, which can result in year over year fluctuations in incurred claims depending on the frequency and severity of catastrophes claims in any one accident year.

The 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.


	December 31, 2023
(Dollars in millions)
Net outstanding liabilities
Reinsurance Casualty	$	11,493
Reinsurance Property	5,379
Insurance Casualty	4,629
Insurance Property	690
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance	22,192

Reinsurance recoverable on unpaid claims
Reinsurance Casualty	89
Reinsurance Property	551
Insurance Casualty	1,300
Insurance Property	157
Total reinsurance recoverable on unpaid claims	2,098

Insurance lines other than short-duration	—
Unallocated claims adjustment expenses	269
Other	45
	314

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


																					At December 31, 2023
	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	2014 (unaudited)		2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021 (unaudited)		2022 (unaudited)		2023
(Dollars in millions)
2014	$	881	$	928	$	815	$	792	$	750	$	727	$	740	$	738	$	728	$	720	$	—	N/A
2015			900		828		824		822		805		842		842		840		839		42		N/A
2016					800		877		874		869		945		946		977		1,007		79		N/A
2017							883		843		849		931		939		995		1,059		78		N/A
2018									1,388		1,385		1,462		1,493		1,561		1,658		320		N/A
2019											1,734		1,799		1,801		1,826		1,867		520		N/A
2020													1,947		1,919		1,898		1,859		799		N/A
2021															2,497		2,492		2,433		1,496		N/A
2022																	2,764		2,722		2,049		N/A
2023																			3,023		2,537		N/A
																			$	17,185


	Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31,
Accident Year	2014 (unaudited)		2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021 (unaudited)		2022 (unaudited)		2023
(Dollars in millions)
2014	$	58	$	123	$	214	$	304	$	429	$	505	$	550	$	591	$	613	$	635
2015			58		160		267		413		502		571		618		654		682
2016					90		191		326		432		546		622		699		767
2017							81		189		321		462		585		687		796
2018									170		294		480		636		819		998
2019											224		354		523		728		957
2020													199		312		496		729
2021															213		322		547
2022																	188		353
2023																			223
																			$	6,687
All outstanding liabilities prior to 2014, net of reinsurance																			995
Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	11,493


																					At December 31, 2023
	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	2014 (unaudited)		2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021 (unaudited)		2022 (unaudited)		2023
(Dollars in millions)
2014	$	1,511	$	1,214	$	1,019	$	926	$	925	$	926	$	919	$	919	$	917	$	917	$	8	N/A
2015			1,522		1,044		964		938		941		933		935		932		929		1		N/A
2016					1,689		1,510		1,546		1,540		1,517		1,518		1,515		1,517		16		N/A
2017							2,781		3,404		3,515		3,643		3,689		3,699		3,713		9		N/A
2018									2,615		2,491		2,493		2,431		2,384		2,369		(1)		N/A
2019											2,014		2,045		1,991		1,875		1,879		(13)		N/A
2020													2,397		2,470		2,414		2,386		58		N/A
2021															2,751		2,777		2,699		152		N/A
2022																	3,247		2,926		822		N/A
2023																			2,791		1,537		N/A
																			$	22,126


	Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31,
Accident Year	2014 (unaudited)		2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021 (unaudited)		2022 (unaudited)		2023
(Dollars in millions)
2014	$	361	$	632	$	756	$	830	$	862	$	872	$	879	$	881	$	882	$	882
2015			372		596		746		829		857		878		887		893		896
2016					461		951		1,239		1,357		1,410		1,429		1,442		1,453
2017							813		2,174		2,739		3,124		3,326		3,420		3,495
2018									541		1,520		1,865		2,061		2,133		2,198
2019											716		1,167		1,489		1,651		1,778
2020													576		1,302		1,711		1,993
2021															676		1,528		2,024
2022																	638		1,389
2023																			612
																			$	16,720
All outstanding liabilities prior to 2014, net of reinsurance																			(24)
Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	5,379


																					At December 31, 2023
	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	2014 (unaudited)		2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021 (unaudited)		2022 (unaudited)		2023
(Dollars in millions)
2014	$	431	$	457	$	454	$	460	$	397	$	398	$	399	$	398	$	400	$	399	$	21	26,359
2015			519		528		535		542		468		472		472		479		482		25		28,556
2016					552		550		579		613		550		539		542		551		36		33,104
2017							610		601		621		653		629		631		668		74		37,077
2018									702		706		743		756		771		867		139		37,914
2019											849		846		877		887		1,076		211		41,579
2020													994		1,050		1,045		1,035		304		39,785
2021															1,190		1,248		1,258		546		46,257
2022																	1,369		1,364		805		47,484
2023																			1,567		964		36,849
																			$	9,266



	Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31,
Accident Year	2014 (unaudited)		2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021 (unaudited)		2022 (unaudited)		2023
(Dollars in millions)
2014	$	41	$	125	$	202	$	257	$	298	$	326	$	339	$	351	$	360	$	368
2015			44		135		219		292		353		382		413		435		448
2016					55		164		269		342		401		443		481		504
2017							54		172		280		379		454		529		571
2018									63		208		317		444		594		696
2019											72		235		397		551		729
2020													67		236		388		556
2021															110		261		483
2022																	85		309
2023																			98
																			$	4,762
All outstanding liabilities prior to 2014, net of reinsurance																			125
Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	4,629


																					At December 31, 2023
	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	2014 (unaudited)		2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021 (unaudited)		2022 (unaudited)		2023
(Dollars in millions)
2014	$	140	$	143	$	137	$	135	$	135	$	135	$	135	$	135	$	135	$	135	$	—	N/A
2015			188		171		162		163		164		165		166		168		167		1		N/A
2016					296		292		295		304		309		311		311		314		2		N/A
2017							498		507		498		506		508		520		522		4		N/A
2018									412		408		410		419		438		446		6		N/A
2019											360		367		364		379		395		9		N/A
2020													614		519		514		521		30		N/A
2021															660		595		609		41		N/A
2022																	783		806		141		N/A
2023																			734		215		N/A
																			$	4,648


	Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31,
Accident Year	2014 (unaudited)		2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021 (unaudited)		2022 (unaudited)		2023
(Dollars in millions)
2014	$	86	$	127	$	133	$	134	$	134	$	134	$	134	$	134	$	134	$	134
2015			108		153		158		161		163		164		165		166		166
2016					168		259		283		302		308		310		310		311
2017							181		429		465		489		507		516		517
2018									246		364		385		418		433		439
2019											233		325		350		369		378
2020													301		427		467		483
2021															332		488		550
2022																	381		576
2023																			405
																			$	3,959
All outstanding liabilities prior to 2014, net of reinsurance																			—
Liabilities for claims and claim adjustment expenses, net of reinsurance																			690

The Company maintains reserves equal to our estimated ultimate liability for losses and loss adjustment expense (LAE) for reported and unreported claims for our insurance and reinsurance businesses. Because reserves are based on estimates of ultimate losses and LAE by underwriting or accident year, the Company uses a variety of statistical and actuarial techniques to monitor reserve adequacy over time, evaluate new information as it becomes known, and adjust reserves whenever an adjustment appears warranted. The Company considers many factors when setting reserves including: (1) exposure base and projected ultimate premium; (2) expected loss ratios by product and class of business, which are developed collaboratively by underwriters and actuaries; (3) actuarial methodologies and assumptions which analyze loss reporting and payment experience, reports from ceding companies and historical trends, such as reserving patterns, loss payments, and product mix; (4) current legal interpretations of coverage and liability; and (5) economic conditions. Management’s best estimate is developed through collaboration with actuarial, underwriting, claims, legal and finance departments and culminates with the input of reserve committees. Each segment reserve committee includes the participation of the relevant parties from actuarial, finance, claims and segment senior management and has the responsibility for recommending and approving management’s best estimate. Reserves are further reviewed by Everest’s Chief Reserving Actuary and senior management. The objective of such process is to determine a single best estimate viewed by management to be the best estimate of its ultimate loss liability. Actual loss and LAE ultimately paid may deviate, perhaps substantially, from such reserves. Net income will be impacted in a period in which the change in estimated ultimate loss and LAE is recorded.

The detailed data required to evaluate ultimate losses for the Company’s insurance business is accumulated from its underwriting and claim systems. Reserving for reinsurance requires evaluation of loss information received from ceding companies. Ceding companies report losses in many forms depending on the type of contract and the agreed or contractual reporting requirements. Generally, pro rata contracts require the submission of a monthly/quarterly account, which includes premium and loss activity for the period with corresponding reserves as established by the ceding company. This information is recorded in the Company’s records. For certain pro rata contracts, the Company may require a detailed loss report for claims that exceed a certain dollar threshold or relate to a particular type of loss. Excess of loss and facultative contracts generally require individual loss reporting with precautionary notices provided when a loss reaches a significant percentage of the attachment point of the contract or when certain causes of loss or types of injury occur. Experienced Claims staff handle individual loss reports and supporting claim information. Based on evaluation of a claim, the Company may establish additional case reserves in addition to the case reserves reported by the ceding company. To ensure ceding companies are submitting required and accurate data, Everest’s Underwriting, Claim, Reinsurance Accounting, and Internal Audit Departments perform various reviews of ceding companies, particularly larger ceding companies, including on-site audits.

The Company segments both reinsurance and insurance reserves into exposure groupings for actuarial analysis. The Company assigns business to exposure groupings so that the underlying exposures have reasonably homogeneous loss development characteristics and are large enough to facilitate credible estimation of ultimate losses. The Company periodically reviews its exposure groupings and may change groupings over time as business changes. The Company currently uses approximately 200 exposure groupings to develop reserve estimates. One of the key selection characteristics for the exposure groupings is the historical duration of the claims settlement process. Business in which claims are reported and settled relatively quickly are commonly referred to as short tail lines, principally property lines. Casualty claims tend to take longer to be reported and settled and casualty lines are generally referred to as long tail lines. Estimates of ultimate losses for shorter tail lines, with the exception of loss estimates for large catastrophic events, generally exhibit less volatility than those for the longer tail lines.

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. Incurred but not reported (IBNR) reserves are calculated using earned premium, an a priori loss ratio, and selected age-to-age development factors and added to actual reported (paid) losses to determine ultimate losses. It is more responsive to actual reported or paid development than the expected loss ratio method but less responsive than the chain ladder method. The reliability of the method depends on the accuracy of the selected a priori loss ratio.

Although the Company uses similar actuarial methods for both short tail and long tail lines, the faster reporting of experience for the short tail lines allows the Company to have greater confidence in its estimates of ultimate losses for short tail lines at an earlier stage than for long tail lines. As a result, the Company utilizes, as well, exposure-based methods to estimate its ultimate losses for longer tail lines, especially for immature underwriting or accident years. For both short and long tail lines, the Company supplements these general approaches with analytically based judgments.

Carried reserves at each reporting date are the management’s best estimate of ultimate unpaid losses and LAE at that date. The Company completes detailed reserve studies for each exposure group annually for both reinsurance and insurance operations. The completed annual reserve studies are “rolled-forward” for each accounting period until the subsequent reserve study is completed. Analyzing the roll-forward process involves comparing actual reported losses to expected losses based on the most recent reserve study. The Company analyzes significant variances between actual and expected losses and post adjustments to its reserves as warranted.

Certain reserves, including losses from widespread catastrophic events and COVID-19 related losses, cannot be estimated using traditional actuarial methods. These types of events are reserved for separately using a variety of statistical and actuarial techniques. We estimate losses for these types of events based on information derived from catastrophe models, quantitative and qualitative exposure analyses, reports and communications from ceding companies and development patterns for historically similar events, where available.

The Company continues to receive claims under expired insurance and reinsurance contracts asserting injuries and/or damages relating to or resulting from environmental pollution and hazardous substances, including asbestos. Environmental claims typically assert liability for (a) the mitigation or remediation of environmental contamination or (b) bodily injury or property damage caused by the release of hazardous substances into the land, air or water. Asbestos claims typically assert liability for bodily injury from exposure to asbestos or for property damage resulting from asbestos or products containing asbestos.

The Company’s reserves include an estimate of the Company’s ultimate liability for A&E claims. The Company’s A&E liabilities emanate from Mt. McKinley Insurance Company’s, a former wholly owned subsidiary that was sold in 2015, direct insurance business and Everest Re’s assumed reinsurance business. All of the contracts of insurance and reinsurance, under which the Company has received claims during the past three years, expired more than 20 years ago. There are significant uncertainties surrounding the Company’s reserves for its A&E losses.

In 2015, the Company sold Mt. McKinley to Clearwater Insurance Company, a subsidiary of Fairfax Financial. Concurrently with the closing, the Company entered into a retrocession treaty with an affiliate of Clearwater Insurance Company. Per the retrocession treaty, the Company retroceded 100% of the liabilities associated with certain Mt. McKinley policies, which related entirely to A&E business and had been reinsured by Bermuda Re. As consideration for entering into the retrocession treaty, Everest Re Bermuda transferred cash of $140 million, an amount equal to the net loss reserves as of the closing date. The maximum liability retroceded under the retrocession treaty will be $440 million, equal to the retrocession payment plus $300 million. The Company will retain liability for any amounts exceeding the maximum liability retroceded under the retrocession treaty.

Reinsurance recoverables for both paid and unpaid losses totaled $2.3 billion and $2.2 billion at December 31, 2023 and December 31, 2022, respectively. At December 31, 2023, $413 million, or 18.3%, was receivable from Mt. Logan Re collateralized segregated accounts; $266 million, or 11.8%, was receivable from Munich Reinsurance America, Inc. and $163 million, or 7.2%, was recoverable from Endurance Reinsurance Corporation of America. No other retrocessionaire accounted for more than 5% of our receivables.