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COLLATERALIZED REINSURANCE, TRUST AGREEMENTS AND OTHER RESTRICTED ASSETS
 3 Months Ended
Mar. 31, 2024
Collateralized Reinsurance And Trust Agreements [Abstract]  
COLLATERALIZED REINSURANCE, TRUST AGREEMENTS AND OTHER RESTRICTED ASSETS COLLATERALIZED REINSURANCE, TRUST AGREEMENTS AND OTHER RESTRICTED ASSETS
The Company maintains certain restricted assets as security for potential future obligations, primarily to support its underwriting operations. The following table summarizes the Company’s restricted assets:

At March 31,At December 31,
(Dollars in millions)20242023
Collateral in trust for non-affiliated agreements (1)
$3,178 $3,208 
Collateral for secured letter of credit facilities1,427 1,438 
Collateral for FHLB borrowings1,067 1,077 
Securities on deposit with or regulated by government authorities1,415 1,447 
Funds at Lloyd's532 538 
Funds held by reinsureds1,155 1,135 
Total restricted assets8,774 8,843 
(1) At March 31, 2024 and December 31, 2023, the total amount on deposit in trust accounts includes $299 million and $243 million of restricted cash respectively.

The Company reinsures some of its catastrophe exposures with the segregated accounts of subsidiary Mt. Logan Re, Ltd. (“Mt. Logan Re”). Mt. Logan Re is a collateralized insurer registered in Bermuda and 100% of the voting common shares are owned by Group. Each segregated account invests predominantly in a diversified set of catastrophe exposures, diversified by risk/peril and across different geographic regions globally.
The following table summarizes the premiums and losses that are ceded by the Company to Mt. Logan Re segregated accounts and assumed by the Company from Mt. Logan Re segregated accounts.
Three Months Ended
March 31,
Mt. Logan Re Segregated Accounts20242023
(Dollars in millions)
Ceded written premiums$87 $53 
Ceded earned premiums87 46 
Ceded losses and LAE38 36 
Assumed written premiums1 1 
Assumed earned premiums1 1 
Assumed losses and LAE— — 
The Company entered into various collateralized reinsurance agreements with Kilimanjaro Re Limited (“Kilimanjaro”), a Bermuda-based special purpose reinsurer, to provide the Company with catastrophe reinsurance coverage. These agreements are multi-year reinsurance contracts which cover named storm and earthquake events. The table below summarizes the various agreements.
(Dollars in millions)
ClassDescriptionEffective DateExpiration DateLimitCoverage Basis
Series 2019-1 Class A-2US, Canada, Puerto Rico – Named Storm and Earthquake Events12/12/201912/19/2024150 Occurrence
Series 2019-1 Class B-2US, Canada, Puerto Rico – Named Storm and Earthquake Events12/12/201912/19/2024275 Aggregate
Series 2021-1 Class A-1US, Canada, Puerto Rico – Named Storm and Earthquake Events4/8/20214/21/2025150 Occurrence
Series 2021-1 Class B-1US, Canada, Puerto Rico – Named Storm and Earthquake Events4/8/20214/21/202585 Aggregate
Series 2021-1 Class C-1US, Canada, Puerto Rico – Named Storm and Earthquake Events4/8/20214/21/202585 Aggregate
Series 2021-1 Class A-2US, Canada, Puerto Rico – Named Storm and Earthquake Events4/8/20214/20/2026150 Occurrence
Series 2021-1 Class B-2US, Canada, Puerto Rico – Named Storm and Earthquake Events4/8/20214/20/202690 Aggregate
Series 2021-1 Class C-2US, Canada, Puerto Rico – Named Storm and Earthquake Events4/8/20214/20/202690 Aggregate
Series 2022-1 Class AUS, Canada, Puerto Rico – Named Storm and Earthquake Events6/22/20226/25/2025300 Aggregate
Total available limit as of March 31, 2024$1,375 
Recoveries under these collateralized reinsurance agreements with Kilimanjaro are primarily dependent on estimated industry level insured losses from covered events, as well as the geographic location of the events. The estimated industry level of insured losses is obtained from published estimates by an independent recognized authority on insured property losses.

The Company has up to $350 million of catastrophe bond protection (“CAT Bond”) that attaches at a $48.1 billion Property Claims Services (“PCS”) Industry loss threshold. This recovery would be recognized on a pro-rata basis up to a $63.8 billion PCS Industry loss level. As a result of Hurricane Ian, PCS’s current industry estimate of $48.3 billion issued in April 2024 exceeds the attachment point. The potential recovery under the CAT Bond is not expected to be material.

Kilimanjaro has financed the various property catastrophe reinsurance coverages by issuing catastrophe bonds to unrelated, external investors. The proceeds from the issuance of the catastrophe bonds are held in reinsurance trusts throughout the duration of the applicable reinsurance agreements and invested solely in U.S. government money market funds with a rating of at least “AAAm” by Standard & Poor’s. The catastrophe bonds’ issue dates, maturity dates and amounts correspond to the reinsurance agreements listed above.