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:
(Dollars in millions)June 30, 2026December 31, 2025
Collateral in trust for non-affiliated agreements$677 $685 
Collateral held on behalf of affiliates (1)
1,023 1,143 
Collateral for FHLB borrowings1,309 1,418 
Securities on deposit with or regulated by government authorities1,369 1,417 
Funds held by reinsureds410 372 
Prepaid employee benefit asset95 — 
Total restricted assets$4,788 $5,035 
(1) In order to maximize operating efficiency, Everest Re has entered into agreements with certain affiliated Group operating entities to provide collateral on their behalf. In return for providing collateral, Everest Re receives a quarterly fee to compensate for its use of its assets as collateral. The affiliated operating entities that participate in this program must maintain sufficient unencumbered assets to cover the pledged assets, as well as have sufficient statutory capital to satisfy their minimum capital requirements as stipulated by their local regulatory authority and/or rating agency requirement.
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 $69 million and $25 million, respectively. Total restricted cash includes amounts on deposit in trust accounts for non-affiliated agreements.
The Company has 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 Events6/26/20257/8/2030105Occurrence
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 as of June 30, 2026$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.