
	Years Ended December 31,
(Dollars in millions)	2024		2023		2022
Gross reserves beginning of period	$	24,604	$	22,065	$	19,009
Less reinsurance recoverables on unpaid losses	(2,098)		(2,105)		(1,946)
Net reserves beginning of period	22,506		19,960		17,063

Incurred related to:
Current year	9,967		8,432		8,102
Prior years	1,337		(5)		(2)
Total incurred losses and LAE	11,305		8,427		8,100

Paid related to:
Current year	1,258		1,379		1,220
Prior years	5,279		4,731		3,740
Total paid losses and LAE	6,537		6,110		4,960

Foreign exchange/translation adjustment	(298)		229		(243)

Net reserves end of period	26,975		22,506		19,960
Plus reinsurance recoverables on unpaid losses	2,915		2,098		2,105
Gross reserves end of period	$	29,889	$	24,604	$	22,065

Current year incurred losses were $10.0 billion, $8.4 billion and $8.1 billion in 2024, 2023 and 2022, respectively. The increase in current year incurred losses from 2023 to 2024 was primarily related to an increase of $1.1 billion in current year attritional losses, resulting from the impact of the increase in premiums earned and changes in the mix of business, as well as an increase of $423 million in current year catastrophe losses.

Incurred prior years unfavorable development in losses was $1.3 billion in 2024. Incurred prior years favorable development in losses was $5 million in 2023 and $2 million in 2022. The net unfavorable development on prior year reserves of $1.3 billion in 2024 is primarily comprised of $1.1 billion of unfavorable development on prior years attritional losses for the Insurance segment, mainly driven by a combination of social inflation and portfolio concentrations in certain U.S. casualty lines and $403 million of unfavorable development on prior years attritional losses for Other segment, mainly related to certain sports and leisure lines for accident years 2019 through 2023, including A&E reserve strengthening of $54 million resulting in a 3-year net asbestos survival ratio of 7 years. In addition, the Reinsurance segment recorded $684 million of unfavorable development on prior year casualty reserves. This unfavorable development in the Reinsurance segment was largely offset by favorable development booked on property and mortgage lines. The net favorable development on prior year reserves of $5 million in 2023 is comprised of $401 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 $285 million of unfavorable development on prior years attritional losses for insurance lines, mainly related to casualty lines for accident years from 2016 through 2019 as well as $110 million of unfavorable development on prior years attritional losses for other lines. 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 following is information about incurred and paid claims development as of December 31, 2024, net of reinsurance, as well as cumulative claim frequency and the total of IBNR liabilities 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, 2024
(Dollars in millions)
Net outstanding liabilities
Reinsurance Casualty	$	12,810
Reinsurance Property	6,028
Insurance Casualty	5,891
Insurance Property	762
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance (1)	25,491

Reinsurance recoverable on unpaid claims
Reinsurance Casualty	73
Reinsurance Property	624
Insurance Casualty	1,750
Insurance Property	237
Total reinsurance recoverable on unpaid claims (1)	2,683

Insurance lines other than short-duration	—
Unallocated claims adjustment expenses	316
Other (2)	1,400
	1,716

Total gross liability for unpaid claims and claim adjustment expense	$	29,889

(2) The other amount is primarily comprised of the new Other segment, which includes the results of our sports and leisure business sold in October 2024, consisting of policies written prior to the sale and polices renewed and certain new business written on the Company’s paper post-sale. It also includes run-off A&E exposures, certain discontinued insurance programs primarily written prior to 2012 and certain discontinued insurance and reinsurance coverage classes. The Other segment does not generally sell insurance or reinsurance products but is responsible for the management of existing policies and settlement of related losses.


																					At December 31, 2024
	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	2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021 (unaudited)		2022 (unaudited)		2023 (unaudited)		2024
(Dollars in millions)
2015	$	777	$	821	$	818	$	815	$	799	$	835	$	835	$	833	$	832	$	845	$	45	N/A
2016			792		870		867		862		938		940		970		1,000		1,022		52		N/A
2017					875		834		841		922		931		986		1,051		1,079		24		N/A
2018							1,447		1,445		1,522		1,553		1,621		1,718		1,775		246		N/A
2019									1,761		1,826		1,828		1,853		1,893		1,954		346		N/A
2020											1,957		1,928		1,907		1,869		1,911		588		N/A
2021													2,491		2,487		2,427		2,518		1,229		N/A
2022															2,730		2,688		2,739		1,658		N/A
2023																	2,958		3,123		2,315		N/A
2024																			3,275		2,756		N/A
																			$	20,240


	Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31,
Accident Year	2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021 (unaudited)		2022 (unaudited)		2023 (unaudited)		2024
(Dollars in millions)
2015	$	56	$	158	$	265	$	410	$	499	$	567	$	613	$	650	$	677	$	702
2016			89		189		323		429		542		618		693		762		826
2017					80		186		317		458		582		681		790		917
2018							188		296		497		652		828		1,008		1,214
2019									239		364		533		735		963		1,234
2020											205		307		486		720		987
2021													206		319		542		845
2022															184		345		646
2023																	201		422
2024																			256
																			$	8,048
All outstanding liabilities prior to 2015, net of reinsurance																			617
Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	12,810


																					At December 31, 2024
	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	2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021 (unaudited)		2022 (unaudited)		2023 (unaudited)		2024
(Dollars in millions)
2015	$	1,378	$	1,037	$	956	$	930	$	933	$	925	$	927	$	924	$	921	$	911	$	—	N/A
2016			1,681		1,502		1,538		1,532		1,510		1,511		1,507		1,509		1,502		1		N/A
2017					2,773		3,396		3,507		3,636		3,681		3,692		3,705		3,724		3		N/A
2018							2,594		2,469		2,471		2,409		2,362		2,347		2,382		3		N/A
2019									2,005		2,036		1,981		1,866		1,869		1,920		2		N/A
2020											2,388		2,461		2,405		2,377		2,379		3		N/A
2021													2,745		2,770		2,692		2,582		14		N/A
2022															3,202		2,880		2,586		261		N/A
2023																	2,788		2,411		662		N/A
2024																			3,940		2,214		N/A
																			$	24,337


	Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31,
Accident Year	2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021 (unaudited)		2022 (unaudited)		2023 (unaudited)		2024
(Dollars in millions)
2015	$	369	$	591	$	740	$	823	$	850	$	871	$	879	$	884	$	888	$	889
2016			459		946		1,056		1,080		1,089		1,081		1,082		1,084		1,128
2017					810		2,170		2,733		3,117		3,313		3,407		3,482		3,590
2018							534		1,509		1,857		2,047		2,121		2,184		2,307
2019									714		1,159		1,482		1,645		1,771		1,934
2020											571		1,302		1,706		1,989		2,251
2021													679		1,523		2,014		2,420
2022															619		1,364		1,896
2023																	600		1,165
2024																			774
																			$	18,355
All outstanding liabilities prior to 2015, net of reinsurance																			46
Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	6,028


																					At December 31, 2024
	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	2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021 (unaudited)		2022 (unaudited)		2023 (unaudited)		2024
(Dollars in millions)
2015	$	487	$	492	$	500	$	503	$	427	$	426	$	427	$	434	$	426	$	445	$	11	27,331
2016			504		510		538		557		489		474		478		488		494		17		31,267
2017					559		557		567		585		559		559		584		580		32		34,793
2018							643		648		679		685		697		772		811		64		34,838
2019									774		777		797		804		953		1,089		145		37,837
2020											912		989		977		975		1,096		273		39,675
2021													1,117		1,159		1,153		1,353		464		44,458
2022															1,241		1,239		1,597		739		46,433
2023																	1,424		1,740		1,125		44,372
2024																			1,788		1,546		33,512
																			$	10,993



	Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31,
Accident Year	2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021 (unaudited)		2022 (unaudited)		2023 (unaudited)		2024
(Dollars in millions)
2015	$	43	$	127	$	208	$	270	$	325	$	351	$	379	$	397	$	409	$	417
2016			51		156		253		314		362		398		430		448		460
2017					52		165		263		343		404		467		493		527
2018							61		196		296		407		539		623		678
2019									69		218		364		498		646		828
2020											63		229		372		531		659
2021													105		246		428		655
2022															79		282		578
2023																	93		311
2024																			85
																			$	5,200
All outstanding liabilities prior to 2015, net of reinsurance																			97
Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	5,891


																					At December 31, 2024
	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	2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021 (unaudited)		2022 (unaudited)		2023 (unaudited)		2024
(Dollars in millions)
2015	$	179	$	169	$	159	$	160	$	161	$	162	$	163	$	165	$	164	$	165	$	1	N/A
2016			289		281		284		292		297		299		300		302		301		2		N/A
2017					486		494		486		494		496		508		509		506		1		N/A
2018							403		399		401		410		428		436		435		3		N/A
2019									347		352		350		365		380		375		6		N/A
2020											601		508		498		503		492		10		N/A
2021													646		585		602		628		37		N/A
2022															770		796		698		42		N/A
2023																	717		669		94		N/A
2024																			597		192		N/A
																			$	4,864


	Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31,
Accident Year	2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021 (unaudited)		2022 (unaudited)		2023 (unaudited)		2024
(Dollars in millions)
2015	$	107	$	153	$	155	$	158	$	160	$	161	$	162	$	163	$	163	$	164
2016			167		249		272		290		296		297		299		299		299
2017					176		416		452		477		493		505		504		505
2018							240		356		376		407		424		429		431
2019									226		313		335		355		363		368
2020											292		413		450		465		473
2021													325		482		544		565
2022															377		567		594
2023																	400		503
2024																			200
																			$	4,102
All outstanding liabilities prior to 2015, net of reinsurance																			—
Liabilities for claims and claim adjustment expenses, net of reinsurance																			762

The Company maintains reserves equal to management’s estimated ultimate liability for losses and 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. 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.

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 250 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 uncertainty 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. 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.

For both short and long tail lines, the Company supplements these general approaches with analytically based judgments. 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 at an earlier stage than for long tail lines. For immature underwriting or accident years, the initial expected loss ratios are key inputs that involve management’s judgment and are based on a variety of factors, including: (1) expected loss ratios developed during the Company’s pricing process; (2) historical loss ratios adjusted for rate change and trend; and (3) industry benchmarks for similar business. These judgments take into account management’s view of past, current and future factors that may influence ultimate losses, including: (1) market conditions; (2) changes in the business underwritten; (3) changes in timing of the emergence of claims; and (4) other factors. The determination of when reported losses are sufficient and credible to warrant selection of an ultimate loss ratio different from the initial expected loss ratio also requires judgment.

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. Rather, loss and LAE reserves are estimated by management by completing an in-depth analysis of the individual contracts which may potentially be impacted by the loss. The analysis uses inputs from various sources and methodology, to build up a comprehensive perspective. Such analysis generally involves: (1) estimating the size of insured industry losses; (2) reviewing portfolios to identify contracts which are exposed; (3) reviewing information reported or otherwise provided by customers and brokers; (4) discussing the loss with customers

and brokers; and (5) estimating the ultimate expected cost to settle all claims and administrative costs arising from the loss on a contract-by-contract basis and in aggregate for the event. Due to the inherent uniqueness or specific nature of a catastrophic event, each event has its own unique assessment, and different weights may be applied to various inputs based on management’s judgment. Once a loss has occurred, during the then current reporting period, the Company records its best estimate of the ultimate expected cost to settle all claims arising from the loss. The Company’s estimate of loss and LAE reserves is then determined by deducting cumulative paid losses from its estimate of the ultimate expected loss. The Company’s estimate of IBNR is determined by deducting cumulative paid losses, case reserves and additional case reserves from its estimate of the ultimate expected loss.

Because catastrophe losses are typically due to prominent, public events such as hurricanes and earthquakes, the Company is often able to use independent reports as part of its loss reserve estimation process. The Company also reviews catastrophe bulletins published by various statistical modeling agencies to assist in determining the size of the industry loss, although these reports may not be available for some time after an event. For smaller events including localized severe weather events such as windstorms, hail, ice, snow, flooding, freezing and tornadoes, which are not necessarily prominent, public occurrences, the Company initially places greater reliance on catastrophe bulletins published by statistical modeling agencies to assist in determining what events occurred during the reporting period than the Company does for large events. This includes reviewing catastrophe bulletins published by Property Claim Services for U.S. catastrophes. The Company sets its initial estimates of reserves for loss and LAE for these smaller events based on a combination of its historical market share for these types of losses and the estimate of the total insured industry property losses as reported by statistical modeling agencies, although management may make significant adjustments based on the Company’s current exposure to the geographic region involved as well as the size of the loss and the peril involved.

In general, reserves for the Company’s more recent large losses are subject to greater uncertainty and, therefore, greater potential variability, and are likely to experience material changes from one period to the next. This is due to the uncertainty as to the size of the industry losses, uncertainty as to which contracts have been exposed, uncertainty due to complex legal and coverage issues that can arise out of large or complex losses and uncertainty as to the magnitude of losses and LAE incurred by the Company’s customers. As the Company’s losses age, more information becomes available, and the Company believes its estimates become more certain.

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 (“Mt. McKinley”), 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 (“Clearwater”), a subsidiary of Fairfax Financial. Concurrently with the closing, the Company entered into a retrocession treaty with an affiliate of Clearwater. 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 $3.1 billion and $2.3 billion at December 31, 2024 and December 31, 2023, respectively. At December 31, 2024, $395 million, or 12.6%, was receivable from Mt. Logan Re, Ltd. (“Mt. Logan Re”) collateralized segregated accounts; $316 million, or 10.1%, was receivable from Munich Reinsurance America, Inc. and $187 million, or 6.0%, was recoverable from Endurance Reinsurance Corporation of America. No other retrocessionaire accounted for more than 5% of our receivables.