v3.26.1
COLLATERALIZED REINSURANCE, TRUST AGREEMENTS AND OTHER RESTRICTED ASSETS
 6 Months Ended
Jun. 30, 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 June 30,At December 31,
(Dollars in millions)
2026 (1)
2025
Collateral in trust for non-affiliated agreements$3,268 $3,363 
Collateral for secured letter of credit facilities787 739 
Collateral for FHLB borrowings1,309 1,418 
Securities on deposit with or regulated by government authorities1,369 1,417 
Funds at Lloyd's258 260 
Funds held by reinsureds1,408 1,326 
Prepaid employee benefit asset 95 — 
Total restricted assets8,495 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 June 30, 2026. See Note 6 of the Notes to these consolidated financial statements.
Restricted cash is included in cash on the consolidated balance sheets. At June 30, 2026 and December 31, 2025, the Company had restricted cash of $105 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
June 30,		Six Months Ended
June 30,
Mt. Logan Re Segregated Accounts2026202520262025
(Dollars in millions)
Ceded written premiums$92 $80 $210 $250 
Ceded earned premiums92 92 210 216 
Ceded losses and LAE12 — 42 121 
Assumed written premiums1 2 1 5 
Assumed earned premiums1 2 1 5 
Assumed losses and LAE— — — — 

The Company reinsures some of its loss exposures from its global casualty and specialty reinsurance and facultative portfolios with the segregated accounts of a subsidiary of Annapurna. Annapurna is a Bermuda-based collateralized insurer and special purpose vehicle. For the three and six months ended June 30, 2026, written premiums, earned premiums, and losses and LAE ceded to Annapurna were $274 million, $81 million, and $58 million, respectively.
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. On June 29, 2026, the Company entered into additional collateralized reinsurance agreements with Kilimanjaro. These additional agreements are similar in nature in regards to covered region and covered events as previously entered into agreements with Kilimanjaro. These new agreements are effective July 1, 2026. The table below summarizes the various agreements.
(Dollars in millions)
ClassDescriptionEffective DateExpiration DateLimitCoverage Basis
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
Series 2026-1 Class B-1US, Canada, Puerto Rico – Named Storm and Earthquake Events7/1/20266/30/202970 Aggregate
Series 2026-1 Class C-1US, Canada, Puerto Rico – Named Storm and Earthquake Events7/1/20266/30/202960 Occurrence
Series 2026-1 Class D-1US, Canada, Puerto Rico – Named Storm and Earthquake Events7/1/20266/30/2029220 Occurrence
Series 2026-2 Class A-2US, Canada, Puerto Rico – Named Storm and Earthquake Events7/1/20266/30/203050 Aggregate
Series 2026-2 Class B-2US, Canada, Puerto Rico – Named Storm and Earthquake Events7/1/20266/30/203060 Aggregate
Series 2026-2 Class D-2US, Canada, Puerto Rico – Named Storm and Earthquake Events7/1/20266/30/2030170 Occurrence
Total available limit$1,830 
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.