v3.26.1
COLLATERALIZED REINSURANCE, TRUST AGREEMENTS AND OTHER RESTRICTED ASSETS
 3 Months Ended
Mar. 31, 2026
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)
2026 (1)
2025
Collateral in trust for non-affiliated agreements$3,347 $3,363 
Collateral for secured letter of credit facilities662 739 
Collateral for FHLB borrowings1,357 1,418 
Securities on deposit with or regulated by government authorities1,398 1,417 
Funds at Lloyd's256 260 
Funds held by reinsureds1,395 1,326 
Total restricted assets8,414 8,522 
(1) As applicable, restricted assets summarized in the table above include assets classified as held-for-sale, which are reported within Other assets on the consolidated balance sheets as of March 31, 2026. See Note 6 of the Notes to these consolidated financial statements.
Restricted cash is included in cash on the consolidated balance sheets. At March 31, 2026 and December 31, 2025, the Company had restricted cash of $122 million and $122 million, respectively. Total restricted cash includes amounts on deposit in trust accounts for non-affiliated agreements and secured letter of credit facilities. See Note 6 of the Notes to the Consolidated Financial Statements for details of assets held-for-sale.
The Company reinsures some of its catastrophe exposures with the segregated accounts of a 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 Accounts20262025
(Dollars in millions)
Ceded written premiums$118 $170 
Ceded earned premiums118 125 
Ceded losses and LAE30 121 
Assumed written premiums1 3 
Assumed earned premiums1 3 
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 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 2024-1 Class AUS, Canada, Puerto Rico – Named Storm and Earthquake Events6/27/20246/30/202875 Occurrence
Series 2024-1 Class BUS, Canada, Puerto Rico – Named Storm and Earthquake Events6/27/20246/30/2028125 Occurrence
Series 2025-1 Class A-1US, Canada, Puerto Rico – Named Storm and Earthquake Events6/26/20257/9/2029105 Aggregate
Series 2025-2 Class A-2US, Canada, Puerto Rico – Named Storm and Earthquake Events6/26/20257/8/2030105 Aggregate
Series 2025-1 Class B-1US, Canada, Puerto Rico – Named Storm and Earthquake Events6/26/20257/9/2029120 Aggregate
Series 2025-2 Class B-2US, Canada, Puerto Rico – Named Storm and Earthquake Events6/26/20257/8/2030120 Aggregate
Series 2025-1 Class C-1US, Canada, Puerto Rico – Named Storm and Earthquake Events6/26/20257/9/2029170 Occurrence
Series 2025-2 Class C-2US, Canada, Puerto Rico – Named Storm and Earthquake Events6/26/20257/8/2030170 Occurrence
Series 2025-1 Class D-1US, Canada, Puerto Rico – Named Storm and Earthquake Events6/26/20257/9/2029105 Occurrence
Series 2025-2 Class D-2US, Canada, Puerto Rico – Named Storm and Earthquake Events6/26/20257/8/2030105 Occurrence
Total available limit as of March 31, 2026$1,530 
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.
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.