v3.25.2
INVESTMENTS
 6 Months Ended
Jun. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS INVESTMENTS
The tables below present the amortized cost, allowance for credit losses, gross unrealized appreciation/(depreciation) (“URA(D)”) and fair value of fixed maturity securities - available for sale for the periods indicated:
At June 30, 2025
(Dollars in millions)Amortized
Cost		Allowance for
Credit Losses		Unrealized
Appreciation		Unrealized
Depreciation		Fair
Value
Fixed maturity securities - available for sale
U.S. Treasury securities and obligations of
U.S. government agencies and corporations $258 $— $— $(9)$249 
Obligations of U.S. States and political subdivisions57 — — (7)50 
Corporate securities5,958 (39)105 (128)5,896 
Asset-backed securities4,758 — 18 (27)4,749 
Mortgage-backed securities
Agency commercial208 — 3 (2)210 
Non-agency commercial473 — 1 (27)447 
Agency residential3,804 — 30 (126)3,708 
Non-agency residential1,353 — 24 (3)1,374 
Foreign government securities1,004 — 20 (31)992 
Foreign corporate securities2,121 — 60 (60)2,121 
Total fixed maturity securities - available for sale$19,992 $(40)$262 $(419)$19,796 
(Some amounts may not reconcile due to rounding.)
At December 31, 2024
(Dollars in millions)Amortized
Cost		Allowance for
Credit Losses		Unrealized
Appreciation		Unrealized
Depreciation		Fair
Value
Fixed maturity securities - available for sale
U.S. Treasury securities and obligations of
U.S. government agencies and corporations
$266 $— $— $(11)$255 
Obligations of U.S. States and political subdivisions75 — — (5)70 
Corporate securities4,156 (35)37 (160)3,997 
Asset-backed securities5,321 — 24 (35)5,311 
Mortgage-backed securities
Commercial479 — — (38)441 
Agency residential3,306 — 10 (166)3,151 
Non-agency residential1,164 — 9 (11)1,161 
Foreign government securities1,013 — 8 (52)970 
Foreign corporate securities1,905 — 17 (91)1,831 
Total fixed maturity securities - available for sale$17,685 $(36)$106 $(569)$17,186 
(Some amounts may not reconcile due to rounding.)
The following tables show amortized cost, allowance for credit losses, gross URA(D) and fair value of fixed maturity securities - held to maturity for the periods indicated:
At June 30, 2025
(Dollars in millions)Amortized
Cost		Allowance for
Credit Losses		Unrealized
Appreciation		Unrealized
Depreciation		Fair
Value
Fixed maturity securities – held to maturity
Corporate securities$168 $(2)$5 $(2)$169 
Asset-backed securities404 (4)5 (7)398 
Mortgage-backed securities
Commercial7 — — — 7 
Foreign corporate securities79 (1)5 — 83 
Total fixed maturity securities - held to maturity$658 $(7)$15 $(10)$657 
(Some amounts may not reconcile due to rounding.)
At December 31, 2024
(Dollars in millions)Amortized
Cost		Allowance for
Credit Losses		Unrealized
Appreciation		Unrealized
Depreciation		Fair
Value
Fixed maturity securities - held to maturity
Corporate securities$177 $(2)$5 $(4)$175 
Asset-backed securities484 (4)5 (8)477 
Mortgage-backed securities
Commercial21 — — — 21 
Foreign corporate securities84 (1)4 — 86 
Total fixed maturity securities - held to maturity$765 $(8)$14 $(12)$759 
(Some amounts may not reconcile due to rounding.)
The amortized cost and fair value of fixed maturity securities - available for sale are shown in the following table by contractual maturity. As the stated maturity of such securities may not be indicative of actual maturities, the totals for mortgage-backed and asset-backed securities are shown separately.
At June 30, 2025At December 31, 2024
(Dollars in millions)Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Fixed maturity securities – available for sale
Due in one year or less$521 $510 $383 $369 
Due after one year through five years4,421 4,393 3,262 3,145 
Due after five years through ten years3,302 3,307 2,506 2,406 
Due after ten years1,154 1,098 1,264 1,202 
Asset-backed securities4,758 4,749 5,321 5,311 
Mortgage-backed securities
Agency commercial208 210 — — 
Non-agency commercial473 447 479 441 
Agency residential3,804 3,708 3,306 3,151 
Non-agency residential1,353 1,374 1,164 1,161 
Total fixed maturity securities - available for sale$19,992 $19,796 $17,685 $17,186 
(Some amounts may not reconcile due to rounding.)
The amortized cost and fair value of fixed maturity securities - held to maturity are shown in the following table by contractual maturity. As the stated maturity of such securities may not be indicative of actual maturities, the totals for mortgage-backed and asset-backed securities are shown separately.
At June 30, 2025At December 31, 2024
(Dollars in millions)Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Fixed maturity securities - held to maturity
Due in one year or less$5 $5 $7 $7 
Due after one year through five years89 89 67 67 
Due after five years through ten years4 4 37 35 
Due after ten years149 154 150 152 
Asset-backed securities404 398 484 477 
Mortgage-backed securities
Commercial7 7 21 21 
Total fixed maturity securities - held to maturity$658 $657 $765 $759 
(Some amounts may not reconcile due to rounding.)
The changes in net URA(D) for the Company’s investments are as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
(Dollars in millions)2025202420252024
Increase (decrease) during the period between the fair value and cost of
investments carried at fair value, and deferred taxes thereon:
Fixed maturity securities - available for sale, held to maturity and short-term investments$111 $(32)$310 $(106)
Change in URA(D), pre-tax111 (32)310 (106)
Deferred tax benefit (expense)(23)7 (65)22 
Change in URA(D), net of deferred taxes, included in stockholders' equity
$88 $(25)$245 $(84)
(Some amounts may not reconcile due to rounding.)
The tables below display the aggregate fair value and gross unrealized depreciation of fixed maturity securities - available for sale by security type and contractual maturity, in each case subdivided according to length of time that the individual securities had been in a continuous unrealized loss position for the periods indicated:
Duration of Unrealized Loss at June 30, 2025 By Security Type
Less than 12 monthsGreater than 12 monthsTotal
(Dollars in millions)Fair
Value		Gross
Unrealized
Depreciation		Fair
Value		Gross
Unrealized
Depreciation		Fair
Value		Gross
Unrealized
Depreciation
Fixed maturity securities - available for sale
U.S. Treasury securities and obligations of
 U.S. government agencies and corporations$74 $(4)$163 $(4)$237 $(9)
Obligations of U.S. States and political subdivisions10 (1)37 (6)47 (7)
Corporate securities765 (32)1,075 (91)1,841 (123)
Asset-backed securities702 (20)201 (7)903 (27)
Mortgage-backed securities
Agency commercial18 — 18 (2)35 (2)
Non-agency commercial6 — 413 (27)419 (27)
Agency residential760 (13)862 (113)1,623 (126)
Non-agency residential219 (3)5 — 224 (3)
Foreign government securities147 (2)293 (29)439 (31)
Foreign corporate securities351 (9)530 (51)881 (60)
Total3,052 (84)3,598 (330)6,650 (414)
Securities where an allowance for credit loss was recorded36 (5)16 — 52 (5)
Total fixed maturity securities - available for sale$3,088 $(89)$3,614 $(330)$6,701 $(419)
(Some amounts may not reconcile due to rounding.)
Duration of Unrealized Loss at June 30, 2025 By Maturity
Less than 12 monthsGreater than 12 monthsTotal
(Dollars in millions)Fair
Value		Gross
Unrealized
Depreciation		Fair
Value		Gross
Unrealized
Depreciation		Fair
Value		Gross
Unrealized
Depreciation
Fixed maturity securities - available for sale
Due in one year or less$48 $(1)$274 $(10)$322 $(11)
Due in one year through five years569 (14)1,158 (78)1,727 (91)
Due in five years through ten years400 (6)426 (60)826 (66)
Due after ten years330 (27)242 (34)571 (61)
Asset-backed securities702 (20)201 (7)903 (27)
Mortgage-backed securities1,003 (16)1,298 (141)2,302 (158)
Total3,052 (84)3,598 (330)6,650 (414)
Securities where an allowance for credit loss was recorded36 (5)16 — 52 (5)
Total fixed maturity securities - available for sale$3,088 $(89)$3,614 $(330)$6,701 $(419)
(Some amounts may not reconcile due to rounding.)
The aggregate fair value and gross unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position at June 30, 2025 were $6.7 billion and $419 million, respectively. The fair value of securities for the single issuer (the U.S. government), whose securities comprised the largest unrealized loss position at June 30, 2025, amounted to less than 1.1% of the overall fair value of the Company’s fixed maturity securities - available for sale. The fair value of the securities for the issuer with the second largest unrealized loss position at June 30, 2025 comprised less than 0.2% of the Company’s fixed maturity securities - available for sale. In addition, as indicated on the above table, there was no significant concentration of unrealized losses in any one market sector. The $89 million of unrealized losses related to fixed maturity securities - available for sale that have been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate securities, asset-backed securities and agency residential mortgage-backed securities. Of these unrealized losses, $65 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. The $330 million of unrealized losses related to fixed maturity
securities - available for sale in an unrealized loss position for more than one year related primarily to agency residential mortgage-backed securities, as well as domestic and foreign corporate securities, foreign government securities and non-agency commercial mortgage-backed securities. Of these unrealized losses, $320 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. In all instances, there were no projected cash flow shortfalls to recover the full book value of the investments and the related interest obligations. The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments. Based upon the Company’s current evaluation of securities in an unrealized loss position as of June 30, 2025, the unrealized losses are due to changes in interest rates and non-issuer-specific credit spreads and are not credit-related. In addition, the contractual terms of these securities do not permit these securities to be settled at a price less than their amortized cost.
The tables below display the aggregate fair value and gross unrealized depreciation of fixed maturity securities - available for sale, by security type and contractual maturity, in each case subdivided according to length of time that individual securities had been in a continuous unrealized loss position for the periods indicated:
Duration of Unrealized Loss at December 31, 2024 By Security Type
Less than 12 monthsGreater than 12 monthsTotal
(Dollars in millions)Fair
Value		Gross
Unrealized
Depreciation		Fair
Value		Gross
Unrealized
Depreciation		Fair
Value		Gross
Unrealized
Depreciation
Fixed maturity securities - available for sale
U.S. Treasury securities and obligations of
 U.S. government agencies and corporations$43 $(1)$187 $(10)$230 $(11)
Obligations of U.S. States and political subdivisions9 — 40 (5)48 (5)
Corporate securities1,502 (42)1,169 (116)2,670 (160)
Asset-backed securities843 (17)501 (18)1,344 (35)
Mortgage-backed securities
Commercial6 — 408 (38)415 (38)
Agency residential1,784 (70)583 (95)2,367 (166)
Non-agency residential650 (11)24 — 674 (11)
Foreign government securities298 (11)376 (41)674 (52)
Foreign corporate securities689 (18)569 (72)1,258 (91)
Total$5,823 $(171)$3,856 $(397)$9,680 $(567)
Securities where an allowance for credit loss was recorded17 (1)— — 17 (1)
Total fixed maturity securities - available for sale$5,841 $(172)$3,856 $(397)$9,697 $(569)
(Some amounts may not reconcile due to rounding.)
Duration of Unrealized Loss at December 31, 2024 By Maturity
Less than 12 monthsGreater than 12 monthsTotal
(Dollars in millions)Fair
Value		Gross
Unrealized
Depreciation		Fair
Value		Gross
Unrealized
Depreciation		Fair
Value		Gross
Unrealized
Depreciation
Fixed maturity securities - available for sale
Due in one year or less$53 $(2)$166 $(11)$219 $(13)
Due in one year through five years895 (22)1,313 (107)2,209 (129)
Due in five years through ten years1,127 (23)572 (92)1,699 (115)
Due after ten years465 (26)289 (35)754 (61)
Asset-backed securities843 (17)501 (18)1,344 (35)
Mortgage-backed securities2,441 (81)1,015 (134)3,455 (215)
Total$5,823 $(171)$3,856 $(397)$9,680 $(567)
Securities where an allowance for credit loss was recorded17 (1)— — 17 (1)
Total fixed maturity securities - available for sale$5,841 $(172)$3,856 $(397)$9,697 $(569)
(Some amounts may not reconcile due to rounding.)
The aggregate fair value and gross unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position at December 31, 2024 were $9.7 billion and $569 million, respectively. The fair value of securities for the single issuer (the U.S. government), whose securities comprised the largest unrealized loss position at
December 31, 2024, amounted to approximately 1.1% of the overall fair value of the Company’s fixed maturity securities - available for sale. The fair value of the securities for the issuer with the second largest unrealized loss comprised less than 0.5% of the Company’s fixed maturity securities - available for sale. In addition, as indicated on the above table, there was no significant concentration of unrealized losses in any one market sector. The $172 million of unrealized losses related to fixed maturity securities - available for sale that have been in an unrealized loss position for less than one year were generally comprised of agency residential mortgage-backed securities, domestic and foreign corporate securities, foreign government securities, asset-backed securities and non-agency residential mortgage-backed securities. Of these unrealized losses, $167 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. The $397 million of unrealized losses related to fixed maturity securities - available for sale in an unrealized loss position for more than one year related primarily to domestic and foreign corporate securities, foreign government securities, commercial mortgage-backed securities, agency residential mortgage-backed securities, asset-backed securities, as well as U.S. government securities and obligations. Of these unrealized losses, $377 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. In all instances, there were no projected cash flow shortfalls to recover the full book value of the investments and the related interest obligations. The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments.
The components of net investment income are presented in the table below for the periods indicated:
Three Months Ended
June 30,		Six Months Ended
June 30,
(Dollars in millions)2025202420252024
Fixed maturities$267 $255 $532 $500 
Equity securities1 1 2 2 
Short-term investments and cash15 22 43 44 
Other invested assets
Limited partnerships8 44 (1)68 
Dividends from preferred shares of affiliate8 8 16 16 
Other22 30 52 50 
Gross investment income before adjustments321 360 643 679 
Funds held interest income (expense)1 1 5 5 
Gross investment income322 361 648 684 
Investment expenses8 13 15 24 
Net investment income$314 $348 $633 $660 
(Some amounts may not reconcile due to rounding.)
The Company records results from limited partnership investments on the equity method of accounting with changes in value reported through net investment income. The net investment income from limited partnerships is dependent upon the Company’s share of the net asset values (“NAVs”) of interests underlying each limited partnership. Due to the timing of receiving financial information from these partnerships, the results are generally reported on a one-month or quarter lag. If the Company determines there has been a significant decline in value of a limited partnership during this lag period, a loss will be recorded in the period in which the Company identifies the decline.
The Company had contractual commitments to invest up to an additional $1.9 billion in limited partnerships and private placement loan securities at June 30, 2025. These commitments will be funded when called in accordance with the partnership and loan agreements, which have investment periods that expire, unless extended, through 2035.
In 2022, the Company entered into corporate-owned life insurance (“COLI”) policies, which are invested in debt and equity securities. The COLI policies are carried within other invested assets at the policy cash surrender value of $1.8 billion and $1.7 billion as of June 30, 2025 and December 31, 2024, respectively.
Other invested assets, at fair value, as of June 30, 2025 and December 31, 2024, were comprised of preferred shares held in Everest Preferred International Holdings, Ltd. (“Preferred Holdings”), a wholly-owned subsidiary of Group. See Note 13 of the Notes to these consolidated financial statements.
Variable Interest Entities
The Company is engaged with various special purpose entities and other entities that are deemed to be VIEs, primarily as an investor through normal investment activities but also as an investment manager. A VIE is an entity that either has investors that lack certain essential characteristics of a controlling financial interest, such as simple majority kick-out rights, or lacks sufficient funds to finance its own activities without financial support provided by other entities. The Company performs ongoing qualitative assessments of its VIEs to determine whether the Company has a controlling financial interest in the VIE and therefore is the primary beneficiary. The Company is deemed to have a controlling financial interest when it has both the ability to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. Based on the Company’s assessment, if it determines it is the primary beneficiary, the Company consolidates the VIE in the Company’s consolidated financial statements. As of June 30, 2025 and December 31, 2024, the Company did not hold any securities for which it is the primary beneficiary.
The Company, through normal investment activities, makes passive investments in general and limited partnerships and other alternative investments. For these non-consolidated VIEs, the Company has determined it is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic performance of the investments. The Company’s maximum exposure to loss as of June 30, 2025 and December 31, 2024 is limited to the total carrying value of $1.8 billion and $1.9 billion, respectively, which are included in general and limited partnerships.
As of June 30, 2025, the Company has outstanding commitments totaling $809 million whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. These investments are generally of a passive nature in that the Company does not take an active role in management.
In addition, the Company makes passive investments in structured securities issued by VIEs for which the Company is not the manager. These investments are included in asset-backed securities, which includes collateralized loan obligations, and are classified as fixed maturities, available for sale. The Company has not provided financial or other support with respect to these investments other than its original investment. For these investments, the Company determined it is not the primary beneficiary due to the relative size of the Company’s investment in comparison to the principal amount of the structured securities issued by the VIEs, credit subordination that reduces the Company’s obligation to absorb losses or right to receive benefits or the Company’s inability to direct the activities that most significantly impact the economic performance of the VIEs. The Company’s maximum exposure to loss on these investments is limited to the amount of the Company’s investment.
The components of net gains (losses) on investments are presented in the table below for the periods indicated:
Three Months Ended
June 30,		Six Months Ended
June 30,
(Dollars in millions)2025202420252024
Fixed maturity securities
Allowance for credit losses$(2)$4 $(2)$5 
Net realized gains (losses) from dispositions— (15)(2)(20)
Equity securities, fair value
Net realized gains (losses) from dispositions— — — 1 
Gains (losses) from fair value adjustments4 (2)3 (3)
Other invested assets, fair value
Gains (losses) from fair value adjustments(4)(16)95 (19)
Total net gains (losses) on investments$(2)$(30)$93 $(37)
(Some amounts may not reconcile due to rounding.)
The following tables provide a roll forward of the Company’s beginning and ending balance of allowance for credit losses for the periods indicated:
Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale
Three Months Ended June 30, 2025Six Months Ended June 30, 2025
Corporate
Securities		Asset Backed
Securities		Foreign
Corporate
Securities		TotalCorporate
Securities		Asset
Backed
Securities		Foreign
Corporate
Securities		Total
(Dollars in millions)
Beginning balance$(36)$— $— $(37)$(35)$— $— $(36)
Credit losses on securities where credit
losses were not previously recorded(3)— — (3)(4)— — (4)
Increases in allowance on previously
 impaired securities— — — — — — — — 
Decreases in allowance on previously
impaired securities— — — — — — — — 
Reduction in allowance due to disposals— — — — — — — — 
Balance, end of period$(39)$— $— $(40)$(39)$— $— $(40)
(Some amounts may not reconcile due to rounding.)

Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale
Three Months Ended June 30, 2024Six Months Ended June 30, 2024
(Dollars in millions)Corporate
Securities		Asset
Backed
Securities		Foreign
Corporate
Securities		TotalCorporate
Securities		Asset
Backed
Securities		Foreign
Corporate
Securities		Total
Beginning balance$(45)$— $— $(46)$(47)$— $— $(48)
Credit losses on securities where credit
losses were not previously recorded— — — — — — — — 
Increases in allowance on previously
impaired securities— — — — — — — — 
Decreases in allowance on previously
impaired securities— — — — — — — — 
Reduction in allowance due to disposals3 — — 4 5 — — 5 
Balance, end of period$(42)$— $— $(42)$(42)$— $— $(42)
(Some amounts may not reconcile due to rounding.)
Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity
Three Months Ended June 30, 2025Six Months Ended June 30, 2025
Corporate
Securities		Asset Backed
Securities		Foreign
Corporate
Securities		TotalCorporate
Securities		Asset
Backed
Securities		Foreign
Corporate
Securities		Total
(Dollars in millions)
Beginning balance$(2)$(4)$(1)$(8)$(2)$(4)$(1)$(8)
Credit losses on securities where credit
losses were not previously recorded— — — — — — — — 
Increases in allowance on previously
impaired securities— — — — — — — — 
Decreases in allowance on previously
impaired securities— — — — — — — — 
Reduction in allowance due to disposals— — 1 1 — 1 1 1 
Balance, end of period$(2)$(4)$(1)$(7)$(2)$(4)$(1)$(7)
(Some amounts may not reconcile due to rounding.)
Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity
Three Months Ended June 30, 2024Six Months Ended June 30, 2024
(Dollars in millions)Corporate
Securities		Asset
Backed
Securities		Foreign
Corporate
Securities		TotalCorporate
Securities		Asset
Backed
Securities		Foreign
Corporate
Securities		Total
Beginning balance$(2)$(5)$(1)$(9)$(2)$(5)$(1)$(8)
Credit losses on securities where credit
losses were not previously recorded— — 1 1 — — — — 
Increases in allowance on previously
impaired securities— — — — — — — — 
Decreases in allowance on previously
impaired securities— — — — — — — — 
Reduction in allowance due to disposals— — — — — — — — 
Balance, end of period$(2)$(5)$(1)$(8)$(2)$(5)$(1)$(8)
(Some amounts may not reconcile due to rounding.)
The proceeds and split between gross gains and losses from sales of fixed maturity securities - available for sale, fixed maturity securities - held to maturity and equity securities are presented in the table below for the periods indicated:
Three Months Ended
June 30,		Six Months Ended
June 30,
(Dollars in millions)2025202420252024
Proceeds from sales of fixed maturity securities - available for sale$68 $303 $142 $649 
Gross gains from dispositions4 5 6 13 
Gross losses from dispositions(5)(20)(8)(33)
Proceeds from sales of fixed maturity securities - held to maturity— — 10 — 
Gross gains from sales— — — — 
Gross losses from sales— — (1)— 
Proceeds from sales of equity securities$2 $13 $2 $13 
Gross gains from dispositions— 1 — 2 
Gross losses from dispositions— — — — 
(Some amounts may not reconcile due to rounding.)