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CREDIT FACILITIES | 9 Months Ended
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Sep. 30, 2024
Line of Credit Facility [Abstract] |
CREDIT FACILITIES | CREDIT FACILITIES The Company has multiple active committed letter of credit facilities with a total commitment of up to $1.7 billion as of September 30, 2024. The Company also has additional uncommitted letter of credit facilities of up to $240 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. See Note 10 of the Notes to these consolidated financial statements for collateral posted related to secured letters of credit. Bermuda Re Wells Fargo Bilateral Letter of Credit Facility Effective February 23, 2021, Everest Reinsurance (Bermuda) Ltd. (“Bermuda Re”) entered into a letter of credit issuance facility with Wells Fargo, referred to as the “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. Effective June 10, 2024, the agreement was amended to extend the availability of committed issuance for one year. The following table summarizes the outstanding letters of credit for the periods indicated:
(Dollars in millions) |  | At September 30, 2024 |  | At December 31, 2023
Letter of Credit Facility |  | Commitment |  | In Use |  | Date of Expiry |  | Commitment |  | In Use |  | Date of Expiry
Bermuda Re Wells Fargo Bank Bilateral LOC Facility |  | $ | 500 |  |  | $ | 437 |  |  | 12/31/2024 |  | $ | 500 |  |  | $ | 97 |  |  | 6/24/2024
|  |  |  |  |  |  |  |  |  | 71 |  |  | 6/28/2024
|  |  |  |  |  |  |  |  |  | 318 |  |  | 12/31/2024
|  | $ | 500 |  |  | $ | 437 |  |  |  |  | $ | 500 |  |  | $ | 486 |  |  |
(Some amounts may not reconcile due to rounding.) Bermuda Re Citibank Letter of Credit Facility Effective August 9, 2021, Bermuda Re entered into a letter of credit issuance facility with Citibank N.A., referred to as the “Bermuda Re Citibank Letter of Credit Facility”. The 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. Effective December 13, 2023, the agreement was amended to extend the availability of committed issuance for an additional two years. The following table summarizes the outstanding letters of credit for the periods indicated:
(Dollars in millions) |  | At September 30, 2024 |  | At December 31, 2023
Letter of Credit Facility |  | Commitment |  | In Use |  | Date of Expiry |  | Commitment |  | In Use |  | Date of Expiry
Bermuda Re Citibank LOC Facility - Committed |  | $ | 230 |  |  | $ | 194 |  |  | 12/31/2024 |  | $ | 230 |  |  | $ | — |  |  | 1/21/2024
|  |  |  |  | — |  |  | 1/21/2025 |  |  |  |  | 4 |  |  | 2/29/2024
|  |  |  |  | 4 |  |  | 2/28/2025 |  |  |  |  | 1 |  |  | 3/1/2024
|  |  |  |  | 2 |  |  | 3/1/2025 |  |  |  |  | 3 |  |  | 9/23/2024
|  |  |  |  | 1 |  |  | 3/15/2025 |  |  |  |  | 1 |  |  | 12/1/2024
|  |  |  |  | 1 |  |  | 8/15/2025 |  |  |  |  | — |  |  | 12/16/2024
|  |  |  |  | 3 |  |  | 9/23/2025 |  |  |  |  | — |  |  | 12/20/2024
|  |  |  |  | 1 |  |  | 12/1/2025 |  |  |  |  | 217 |  |  | 12/31/2024
|  |  |  |  | — |  |  | 12/16/2025 |  |  |  |  | 1 |  |  | 8/15/2025
|  |  |  | — |  |  | 12/20/2025 |  |  |  |  |  |
|  |  |  | 4 |  |  | 12/31/2025 |  |  |  |  |  |
Bermuda Re Citibank LOC Facility - Uncommitted |  | 140 |  |  | 106 |  |  | 12/31/2024 |  | 140 |  |  | 105 |  |  | 12/31/2024
|  |  |  | — |  |  | 6/30/2028 |  |  |  | 7 |  |  | 12/30/2027
|  |  |  |  | 7 |  |  | 9/30/2028 |  |  |  |  |  |  |
Total Citibank Bilateral Agreement |  | $ | 370 |  |  | $ | 324 |  |  |  |  | $ | 370 |  |  | $ | 340 |  |  |
(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. Effective August 16, 2024, the Bermuda Re Bayerische Landesbank Bilateral Secured Credit Facility was amended to extend the availability of committed issuance for three years. The following table summarizes the outstanding letters of credit for the periods indicated:
(Dollars in millions) |  | At September 30, 2024 |  | At December 31, 2023
Letter of Credit Facility |  | Commitment |  | In Use |  | Date of Expiry |  | Commitment |  | In Use |  | Date of Expiry
Bermuda Re Bayerische Landesbank Bilateral Secured Credit Facility - Committed |  | $ | 200 |  |  | $ | 188 |  |  | 12/31/2024 |  | $ | 200 |  |  | $ | 192 |  |  | 12/31/2024
(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 “Bermuda Re 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 and is fully and unconditionally guaranteed by Group, as Parent Guarantor. The following table summarizes the outstanding letters of credit for the periods indicated:
(Dollars in millions) |  | At September 30, 2024 |  | At December 31, 2023
Letter of Credit Facility |  | Commitment |  | In Use |  | Date of Expiry |  | Commitment |  | In Use |  | Date of Expiry
Bermuda Re Bayerische Landesbank Bilateral Unsecured Credit Facility - Committed |  | $ | 150 |  |  | $ | 150 |  |  | 12/31/2024 |  | $ | 150 |  |  | $ | 150 |  |  | 12/31/2024
(Some amounts may not reconcile due to rounding.) Bermuda Re Lloyd’s Bank Letter of Credit Facility Effective December 27, 2023, Bermuda Re entered into an amended and restated letter of credit issuance facility with Lloyd’s Bank Corporate Markets PLC, to add Everest Insurance (Ireland), dac as an account party with access to a $15 million sub-limit for the issuance of letters of credit, an agreement referred to as the “Bermuda Re Lloyd’s Bank Letter of Credit Facility”, which superseded the previous letter of credit issuance facility with Lloyd’s Bank that was effective August 18, 2023. The Bermuda Re Lloyd’s Bank Letter of Credit Facility provides for the committed issuance of up to $250 million of unsecured letters of credit and is fully and unconditionally guaranteed by Group, as Parent Guarantor. The following table summarizes the outstanding letters of credit for the periods indicated:
(Dollars in millions) |  | At September 30, 2024 |  | At December 31, 2023
Letter of Credit Facility |  | Commitment |  | In Use |  | Date of Expiry |  | Commitment |  | In Use |  | Date of Expiry
Bermuda Re Lloyd's Bank Credit Facility-Committed |  | $ | 250 |  |  | $ | 216 |  |  | 12/31/2024 |  | $ | 250 |  |  | $ | 235 |  |  | 12/31/2024
(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 September 30, 2024 |  | At December 31, 2023
Letter of Credit Facility |  | Commitment |  | In Use |  | Date of Expiry |  | Commitment |  | In Use |  | Date of Expiry
Bermuda Re Barclays Bilateral Letter of Credit Facility |  | $ | 200 |  |  | $ | 150 |  |  | 12/30/2024 |  | $ | 200 |  |  | $ | 168 |  |  | 12/30/2024
|  |  |  | 14 |  |  | 12/31/2024 |  |  |  | 14 |  |  | 12/31/2024
Total Bermuda Re Barclays Bilateral Letter of Credit Facility |  | $ | 200 |  |  | $ | 164 |  |  |  |  | $ | 200 |  |  | $ | 182 |  |  |
(Some amounts may not reconcile due to rounding.) 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 September 30, 2024 |  | At December 31, 2023
Letter of Credit Facility |  | Commitment |  | In Use |  | Date of Expiry |  | Commitment |  | In Use |  | Date of Expiry
Nordea Bank Letter of Credit Facility - Committed |  | $ | 200 |  |  | $ | 200 |  |  | 12/31/2024 |  | $ | 200 |  |  | $ | 200 |  |  | 12/31/2024
Nordea Bank Letter of Credit Facility - Uncommitted |  | 100 |  |  | 100 |  |  | 12/31/2024 |  | 100 |  |  | 100 |  |  | 12/31/2024
Total Nordea Bank ABP, NY LOC Facility |  | $ | 300 |  |  | $ | 300 |  |  |  |  | $ | 300 |  |  | $ | 300 |  |  |
(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 September 30, 2024, Everest Re had statutory admitted assets of approximately $29.2 billion which provides borrowing capacity of up to approximately $2.9 billion. As of September 30, 2024, Everest Re had $819 million of borrowings outstanding, which begin to expire in 2024. Everest Re incurred interest expense of $11 million and $7 million for the three months ended September 30, 2024 and 2023, respectively. Everest Re incurred interest expense of $33 million and $21 million for the nine months ended September 30, 2024 and 2023, respectively. The FHLBNY membership agreement requires that 4.5% of borrowed funds be used to acquire additional membership stock. Additionally, the FHLBNY membership agreement requires that members must have sufficient qualifying collateral pledged. As of September 30, 2024, Everest Re had $1.1 billion of collateral pledged. SENIOR NOTES The table below displays Everest Reinsurance Holdings, Inc.’s (“Holdings”) outstanding senior notes (the “Senior Notes”). Fair value is based on quoted market prices, but due to limited trading activity, the Senior Notes are considered Level 2 in the fair value hierarchy.
|  |  |  |  |  |  | September 30, 2024 |  | December 31, 2023
(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 |  |  | $ | 398 |  |  | $ | 373 |  |  | $ | 398 |  |  | $ | 369 |
3.5% Senior notes | 10/7/2020 |  | 10/15/2050 |  | 1,000 |  |  | 982 |  |  | 731 |  |  | 981 |  |  | 742 |
3.125% Senior notes | 10/4/2021 |  | 10/15/2052 |  | 1,000 |  |  | 971 |  |  | 671 |  |  | 970 |  |  | 688 |
|  |  |  |  | $ | 2,400 |  |  | $ | 2,350 |  |  | $ | 1,775 |  |  | $ | 2,349 |  |  | $ | 1,799 |
(Some amounts may not reconcile due to rounding.) Interest expense incurred in connection with the Senior Notes is as follows for the periods indicated:
|  |  |  |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(Dollars in millions) | Interest Paid |  | Payable Dates |  | 2024 |  | 2023 |  | 2024 |  | 2023
4.868% Senior notes | semi-annually |  | June 1/December 1 |  | $ | 5 |  |  | $ | 5 |  |  | $ | 15 |  |  | $ | 15 |
3.5% Senior notes | semi-annually |  | April 15/October 15 |  | 9 |  |  | 9 |  |  | 26 |  |  | 26 |
3.125% Senior notes | semi-annually |  | April 15/October 15 |  | 8 |  |  | 8 |  |  | 24 |  |  | 24 |
|  |  |  |  | $ | 22 |  |  | $ | 22 |  |  | $ | 65 |  |  | $ | 65 |
(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://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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