SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

12 Months Ended

Dec. 31, 2023

Condensed Financial Information Disclosure [Abstract]

SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT


	December 31,
(Dollars and share amounts in millions, except par value per share)	2023		2022

ASSETS:
Fixed maturities - available for sale (amortized cost: 2023, $0; 2022, $0)	$	—	$	—
Other invested assets (cost: 2023, $38; 2022, $0)	38		—
Cash	9		22
Investment in subsidiaries, at equity in the underlying net assets	14,832		11,116
Long-term notes receivable, affiliated	50		—
Accrued investment income	2		—
Receivable from subsidiaries	13		11
Other assets	46		43
TOTAL ASSETS	$	14,989	$	11,192

LIABILITIES:
Long-term notes payable, affiliated	$	1,773	$	2,738
Due to subsidiaries	8		4
Other liabilities	6		9
Total liabilities	1,787		2,751

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; (2023) 74.2 and (2022) 69.9 outstanding before treasury shares	1		1
Additional paid-in capital	3,773		2,302
Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) of ($99) at 2023 and $(250) at 2022	(934)		(1,996)
Treasury shares, at cost; 30.8 shares (2023) and 30.8 shares (2022)	(3,908)		(3,908)
Retained earnings	14,270		12,042
Total shareholders' equity	13,202		8,441
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	14,989	$	11,192

(Some amounts may not reconcile due to rounding.)

See notes to consolidated financial statements.

SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

CONDENSED STATEMENTS OF OPERATIONS


	Years Ended December 31,
	2023		2022		2021
(Dollars in millions)
REVENUES:
Net investment income	$	4	$	—	$	—
Other income (expense)	8		—		—
Net income (loss) of subsidiaries	2,641		648		1,416
Total revenues	2,653		648		1,416

EXPENSES:
Interest expense - affiliated	87		13		6
Other expenses	49		38		31
Total expenses	136		51		37

INCOME (LOSS) BEFORE TAXES	2,517		597		1,379

NET INCOME (LOSS)	$	2,517	$	597	$	1,379

Other comprehensive income (loss) of subsidiaries, net of tax	1,063		(2,008)		(523)

COMPREHENSIVE INCOME (LOSS)	$	3,580	$	(1,411)	$	856

(Some amounts may not reconcile due to rounding.)

See notes to consolidated financial statements.

SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

CONDENSED STATEMENTS OF CASH FLOWS


	Years Ended December 31,
(Dollars in millions, except share amounts)	2023		2022		2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	2,517	$	597	$	1,379
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in retained (earnings) deficit of subsidiaries	(2,641)		(648)		(1,416)
Cash dividends received from subsidiaries	365		476		320
Change in other assets and liabilities, net	(8)		28		3
Increase (decrease) in due to/from affiliates	2		2		8
Amortization of bond premium (accrual of bond discount)	—		—		—
Net (gains) losses on investments	—		—		—
Non-cash compensation expense	3		2		2
Net cash provided by (used in) operating activities	238		457		296

CASH FLOWS FROM INVESTING ACTIVITIES:
Additional investment in subsidiaries	(377)		(824)		(120)
Proceeds from fixed maturities matured/called - available for sale	—		—		—
Proceeds from fixed maturities sold - available for sale	23		—		—
Distribution from other invested assets	441		237		607
Cost of fixed maturities acquired - available for sale	(23)		—		—
Cost of other invested assets acquired	(479)		(26)		(535)
Net change in short-term investments	—		—		—
Proceeds from repayment of long term notes receivable - affiliated	50		—		—
(Issuance) of long term notes receivable - affiliated	(100)		—		—
Net cash provided by (used in) investing activities	(465)		(613)		(48)

CASH FLOWS FROM FINANCING ACTIVITIES:
Common shares issued during the period, net	23		26		27
Proceeds from public offering of common shares	1,445		—		—
Purchase of treasury shares	—		(61)		(225)
Dividends paid to shareholders	(288)		(255)		(247)
Proceeds from issuance (cost of repayment) of long term notes payable - affiliated	(965)		465		200
Net cash provided by (used in) financing activities	215		175		(245)

EFFECT OF EXCHANGE RATE CHANGES ON CASH	—		—		—

Net increase (decrease) in cash	(13)		19		2
Cash, beginning of period	22		3		1
Cash, end of period	$	9	$	22	$	3

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.

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. At December 31, 2022, this transaction was included within long-term notes payable, affiliated in the condensed balance sheets of Everest Group, Ltd.

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. At December 31, 2022, this transaction was included within long-term notes payable, affiliated in the condensed balance sheets of Everest Group, Ltd.

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. At December 31, 2022, this transaction was included within long-term notes payable, affiliated in the condensed balance sheets of Everest Group, Ltd.

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. At December 31, 2022, this transaction was included within long-term notes payable, affiliated in the condensed balance sheets of Everest Group, Ltd.

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. At December 31, 2022, this transaction was included within long-term notes payable, affiliated in the condensed balance sheets of Everest Group, Ltd.

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, 2023, 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 which leaves $50 million outstanding as of December 31, 2023. At December 31, 2023, this transaction was included within long-term notes receivable, affiliated in the condensed balance sheets of Everest Group, Ltd.

9.)Everest Group, Ltd. has invested funds in the segregated accounts of Mt. Logan Re, Ltd. (“Mt. Logan Re”), an affiliated entity. On the condensed balance sheets, investments in Mt. Logan Re valued at $46 million and $65 million as of December 31, 2023 and 2022, respectively, have been recorded within other assets. On the condensed statements of operations, income (expense) of $8.5 million, $(0.9) million and $(1.3) million for the years ended December 31, 2023, 2022 and 2021, respectively, have been recorded in other income (expense).