# EDGAR Filing Document

**Accession Number:** 0000914748
**File Stem:** 0000914748-25-000015
**Filing Date:** 2025-11
**Character Count:** 219029
**Document Hash:** 5777225c850e50ec4afbdc89537c778d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000914748-25-000015.hdr.sgml**: 20251114

**ACCESSION NUMBER**: 0000914748-25-000015

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 85

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251114

**DATE AS OF CHANGE**: 20251114

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** EVEREST REINSURANCE HOLDINGS INC
- **CENTRAL INDEX KEY:** 0000914748
- **STANDARD INDUSTRIAL CLASSIFICATION:** FIRE, MARINE & CASUALTY INSURANCE [6331]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 223263609
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 033-71652
- **FILM NUMBER:** 251486602

**BUSINESS ADDRESS:**
- **STREET 1:** 100 EVEREST WAY
- **CITY:** WARREN
- **STATE:** NJ
- **ZIP:** 07059
- **BUSINESS PHONE:** 9086043000

**MAIL ADDRESS:**
- **STREET 1:** 100 EVEREST WAY
- **CITY:** WARREN
- **STATE:** NJ
- **ZIP:** 07059

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PRUDENTIAL REINSURANCE HOLDINGS INC
- **DATE OF NAME CHANGE:** 19931115

?xml version='1.0' encoding='ASCII'? cik0000914748-20250930

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

**FORM 10-Q**

X **Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

For the quarterly period ended September 30, 2025

 **Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Commission file number 1-14527

**<u>EVEREST REINSURANCE HOLDINGS, INC.</u>**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **22-3263609** |
| (State or other jurisdiction of<br>incorporation or organization) | (I.R.S. Employer<br>Identification No.) |

---

---

| | |
|:---|:---|
| **100 Everest Way**<br>**Warren, New Jersey**  | **07059** |
| (Address of principal executive offices) | (Zip Code) |

---

**(908) 604-3000**

(Registrant's telephone number, including area code)

**<u>Not Applicable</u>**

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes <u>X</u> No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes <u>X</u> No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | |
|:---|:---|:---|
| Large accelerated filer | | Accelerated filer  |
| Non-accelerated filer  | X | Smaller reporting company  |
| | | Emerging growth company  |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes  No <u>X</u>

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

---

| | |
|:---|:---|
| | &nbsp;&nbsp;Number of Shares Outstanding |
| Class | at November 14, 2025 |
| **Common Shares, $0.01 par value** | **1000** |

---

The Registrant meets the conditions set forth in General Instruction H (1)(a) and (b) of Form 10-Q and is therefore filing this form with the reduced disclosure format permitted by General Instruction H of Form 10-Q.

------

**EVEREST REINSURANCE HOLDINGS, INC.**

**Table of Contents**

**Form 10-Q**

---

| | | |
|:---|:---|:---|
| |  | **Page** |
| | **[PART I](#ieac1589caffb4533ac7e953ad54b963f_13)** | |
| | **<u>[FINANCIAL INFORMATION](#ieac1589caffb4533ac7e953ad54b963f_13)</u>** | |
| **[Item 1.](#ieac1589caffb4533ac7e953ad54b963f_16)** | **[Financial Statements](#ieac1589caffb4533ac7e953ad54b963f_16)** |  |
|  | <u>[Consolidated Balance Sheets as of](#ieac1589caffb4533ac7e953ad54b963f_19)September 30, 2025[(unaudited) and](#ieac1589caffb4533ac7e953ad54b963f_19)December 31, 2024</u> | [1](#ieac1589caffb4533ac7e953ad54b963f_19) |
|  | <u>[Consolidated Statements of Operations and Comprehensive Income (Loss) for the](#ieac1589caffb4533ac7e953ad54b963f_22)three and nine[months ended](#ieac1589caffb4533ac7e953ad54b963f_22)September 30, 2025[and](#ieac1589caffb4533ac7e953ad54b963f_22)2024[(unaudited)](#ieac1589caffb4533ac7e953ad54b963f_22)</u> | [2](#ieac1589caffb4533ac7e953ad54b963f_22) |
|  | <u>[Consolidated Statements of Changes in Stockholder's Equity for the](#ieac1589caffb4533ac7e953ad54b963f_25)three and nine[months ended](#ieac1589caffb4533ac7e953ad54b963f_25)September 30, 2025[and](#ieac1589caffb4533ac7e953ad54b963f_25)2024[(unaudited)](#ieac1589caffb4533ac7e953ad54b963f_25)</u> | [3](#ieac1589caffb4533ac7e953ad54b963f_25) |
|  | <u>[Consolidated Statements of Cash Flows for the](#ieac1589caffb4533ac7e953ad54b963f_28) nine months ended September 30, 2025[and](#ieac1589caffb4533ac7e953ad54b963f_28)2024[(unaudited)](#ieac1589caffb4533ac7e953ad54b963f_28)</u> | [4](#ieac1589caffb4533ac7e953ad54b963f_28) |
|  | <u>[Notes to Consolidated Interim Financial Statements (unaudited)](#ieac1589caffb4533ac7e953ad54b963f_31)</u> | [5](#ieac1589caffb4533ac7e953ad54b963f_31) |
| **[Item 2.](#ieac1589caffb4533ac7e953ad54b963f_106)** | **<u>[Management's Discussion and Analysis of Financial Condition and Results of Operation](#ieac1589caffb4533ac7e953ad54b963f_106)s</u>** | [33](#ieac1589caffb4533ac7e953ad54b963f_106) |
| **[Item 3.](#ieac1589caffb4533ac7e953ad54b963f_244)** | **<u>[Quantitative and Qualitative Disclosures About Market Risk](#ieac1589caffb4533ac7e953ad54b963f_244)</u>** | [49](#ieac1589caffb4533ac7e953ad54b963f_244) |
| **[Item 4.](#ieac1589caffb4533ac7e953ad54b963f_247)** | **<u>[Controls and Procedures](#ieac1589caffb4533ac7e953ad54b963f_247)</u>** | [49](#ieac1589caffb4533ac7e953ad54b963f_247) |
|  | **[PART II](#ieac1589caffb4533ac7e953ad54b963f_250)** |  |
|  | **<u>[OTHER INFORMATION](#ieac1589caffb4533ac7e953ad54b963f_250)</u>** |  |
| **[Item 1.](#ieac1589caffb4533ac7e953ad54b963f_253)** | **<u>[Legal Proceedings](#ieac1589caffb4533ac7e953ad54b963f_253)</u>** | [51](#ieac1589caffb4533ac7e953ad54b963f_253) |
| **[Item 1A.](#ieac1589caffb4533ac7e953ad54b963f_256)** | **<u>[Risk Factors](#ieac1589caffb4533ac7e953ad54b963f_256)</u>** | [51](#ieac1589caffb4533ac7e953ad54b963f_256) |
| **[Item 2.](#ieac1589caffb4533ac7e953ad54b963f_259)** | **<u>[Unregistered Sales of Equity Securities and Use of Proceeds](#ieac1589caffb4533ac7e953ad54b963f_259)</u>** | [51](#ieac1589caffb4533ac7e953ad54b963f_259) |
| **[Item 3.](#ieac1589caffb4533ac7e953ad54b963f_262)** | **<u>[Defaults Upon Senior Securities](#ieac1589caffb4533ac7e953ad54b963f_262)</u>** | [51](#ieac1589caffb4533ac7e953ad54b963f_262) |
| **[Item 4.](#ieac1589caffb4533ac7e953ad54b963f_265)** | **<u>[Mine Safety Disclosures](#ieac1589caffb4533ac7e953ad54b963f_265)</u>** | [51](#ieac1589caffb4533ac7e953ad54b963f_265) |
| **[Item 5.](#ieac1589caffb4533ac7e953ad54b963f_268)** | **<u>[Other Information](#ieac1589caffb4533ac7e953ad54b963f_268)</u>** | [51](#ieac1589caffb4533ac7e953ad54b963f_268) |
| **[Item 6.](#ieac1589caffb4533ac7e953ad54b963f_274)** | **<u>[Exhibits](#ieac1589caffb4533ac7e953ad54b963f_274)</u>** | [52](#ieac1589caffb4533ac7e953ad54b963f_274) |

---

------

**Safe Harbor Disclosure.**

This report contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as "may", "will", "should", "could", "anticipate", "estimate", "expect", "plan", "believe", "predict", "potential" and "intend". Forward-looking statements only reflect our expectations and are not guarantees of performance. These statements involve risks, uncertainties and assumptions. Actual events or results may differ materially from those expressed in forward-looking statements. Important factors that could cause actual events or results to be materially different from our forward-looking statements are discussed in our filings with the U.S. Securities and Exchange Commission (the "SEC") including, but not limited to, those described under the caption "Item 1A - Risk Factors" in our most recent Annual Report on Form 10-K (the "Form 10-K filing"). These include:

• the effects of catastrophic events on our financial results;

• losses from catastrophe exposure that exceed our projections;

• insufficient reserves for losses and loss adjustment expenses ("LAE") due to the impact of social inflation or other factors;

• greater-than-expected loss ratios on business written by us and adverse development on claim and/or claim expense liabilities related to business written by our insurance and reinsurance subsidiaries;

• our failure to accurately assess underwriting risk and establish adequate premium rates;

• decreases in pricing for property and casualty reinsurance and insurance;

• our inability or failure to purchase adequate reinsurance;

• our ability to maintain our financial strength ratings;

• our ability to execute divestitures, obtain regulatory approvals and effectuate strategic transactions, including the sale of the renewal rights for our retail commercial insurance business;

• the failure of our insureds, intermediaries and reinsurers to satisfy their obligations to us;

• decline in our investment values and investment income due to exposure to financial markets conditions;

• the failure to maintain enough cash to meet near-term financial obligations;

• our ability to pay dividends, interest and principal, which is dependent on our ability to receive dividends, loan payments and other funds from subsidiaries in our holding company structure;

• reduced net income and capital levels due to foreign currency exchange losses;

• our sensitivity to unanticipated levels of inflation;

• the effects of measures taken by domestic or foreign governments on our business, including but not limited to the impact of tariffs imposed or threatened by the U.S. or foreign governments;

• our ability to attract and retain key executive officers and the executives and employees necessary to manage our business;

• the effect of cybersecurity risks, including technology breaches or failure, and regulatory and legislative developments related to cybersecurity on our business;

• our dependence on brokers and agents for business development;

• material variation of analytical models used in decision making from actual results;

• the effects of business continuation risk on our operations;

• the effect on our business of the highly competitive nature of our industry, including the effects of new entrants to, competing products for and consolidation in the (re)insurance industry;

• an anti-takeover effect caused by insurance laws; and

• our failure to comply with insurance laws and regulations and other regulatory challenges.

We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

------

**PART I.&nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL INFORMATION**

**ITEM 1. &nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS**

EVEREST REINSURANCE HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

---

| | | |
|:---|:---|:---|
| | September 30, | December 31, |
| (In millions of U.S. dollars, par value per share) | 2025 | 2024 |
|  | (unaudited) |  |
| ASSETS: |  |  |
| Fixed maturities - available for sale, at fair value | $19815 | $17186 |
| (amortized cost: 2025, $19,867; 2024, $17,685; credit allowances: 2025, $(51); 2024, $(36)) |  |  |
| Fixed maturities - held to maturity, at amortized cost |  |  |
| &nbsp;&nbsp;(fair value: 2025, $613; 2024, $759; net of credit allowances: 2025, $(6); 2024, $(8)) | 604 | 757 |
| Equity securities, at fair value | 113 | 110 |
| Other invested assets | 3742 | 3639 |
| Other invested assets, at fair value | 1628 | 1523 |
| Short-term investments | 2612 | 2819 |
| Cash | 650 | 616 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments and cash | 29163 | 26650 |
| Accrued investment income | 262 | 248 |
| Premiums receivable (net of credit allowances: 2025, $(43); 2024, $(35)) | 2712 | 2350 |
| Reinsurance recoverables - unaffiliated (net of credit allowances: 2025, $(42); 2024, $(36)) | 3027 | 2481 |
| Reinsurance recoverables - affiliated | 940 | 1302 |
| Income tax asset, net | 241 | 410 |
| Funds held by reinsureds | 346 | 336 |
| Deferred acquisition costs | 834 | 810 |
| Prepaid reinsurance premiums | 683 | 593 |
| Other assets (net of credit allowances: 2025, $(10); 2024, $(9)) | 1159 | 1029 |
| TOTAL ASSETS | $39366 | $36209 |
| LIABILITIES: |  |  |
| Reserve for losses and loss adjustment expenses | $21182 | $19271 |
| Unearned premium reserve | 4185 | 4193 |
| Funds held under reinsurance treaties | 47 | 57 |
| Amounts due to reinsurers | 815 | 522 |
| Losses in course of payment | 151 | 127 |
| Notes payable, affiliated | 600 | 600 |
| Senior notes | 2351 | 2350 |
| Long-term notes | 218 | 218 |
| Borrowings from FHLB | 1019 | 1019 |
| Accrued interest on debt and borrowings | 50 | 22 |
| Unsettled securities payable | 10 | 84 |
| Other liabilities | 492 | 450 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 31119 | 28913 |
| Commitments and Contingencies (Note 11) |  |  |
| STOCKHOLDER'S EQUITY: |  |  |
| Common stock, par value: $0.01; 3,000 shares authorized;  |  |  |
| &nbsp;&nbsp;1,000 shares issued and outstanding (2025 and 2024) |  |  |
| Additional paid-in capital | 1103 | 1103 |
| Accumulated other comprehensive income (loss), net of deferred income tax |  |  |
| &nbsp;&nbsp;expense (benefit) of $1 at 2025 and $(107) at 2024 | 10 | (400) |
| Retained earnings | 7134 | 6593 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholder's equity | 8247 | 7296 |
| TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $39366 | $36209 |

---

The accompanying notes are an integral part of the consolidated financial statements.

------

EVEREST REINSURANCE HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| (In millions of U.S. dollars) | 2025 | 2024 | 2025 | 2024 |
|  | (unaudited) | (unaudited) | (unaudited) | (unaudited) |
| REVENUES: |  |  |  |  |
| Premiums earned | $2252 | $2340 | $6905 | $6779 |
| Net investment income | 368 | 316 | 1000 | 976 |
| Total net gains (losses) on investments | (37) | 39 | 56 | 1 |
| Other income (expense) | (9) | (13) | (50) | 12 |
| Total revenues | 2574 | 2681 | 7911 | 7768 |
| CLAIMS AND EXPENSES: |  |  |  |  |
| Incurred losses and loss adjustment expenses | 1781 | 1636 | 5182 | 4417 |
| Commission, brokerage, taxes and fees | 497 | 498 | 1519 | 1433 |
| Other underwriting expenses | 137 | 157 | 432 | 449 |
| Corporate expenses | 7 | 6 | 24 | 17 |
| Interest, fees and bond issue cost amortization expense | 45 | 38 | 133 | 112 |
| Total claims and expenses | 2466 | 2334 | 7290 | 6428 |
| INCOME (LOSS) BEFORE TAXES | 108 | 347 | 621 | 1340 |
| Income tax expense (benefit) | (8) | 67 | 81 | 266 |
| &nbsp;&nbsp;&nbsp;NET INCOME (LOSS) | $117 | $279 | $541 | $1075 |
| Other comprehensive income (loss), net of tax: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Unrealized appreciation (depreciation) ("URA(D)") of securities arising during the period | 89 | 327 | 330 | 231 |
| &nbsp;&nbsp;&nbsp;Less: reclassification adjustment for realized losses (gains) included in net income (loss) | 37 | 8 | 41 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total URA(D) of securities arising during the period | 126 | 335 | 370 | 252 |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustments | (12) | 41 | 48 | 14 |
| &nbsp;&nbsp;&nbsp;Reclassification adjustment for amortization of net (gain) loss included in net income (loss) |  |  | (8) | 24 |
| &nbsp;&nbsp;&nbsp;Total benefit plan net gain (loss) for the period |  |  | (8) | 24 |
| Total other comprehensive income (loss), net of tax | 114 | 376 | 410 | 290 |
| COMPREHENSIVE INCOME (LOSS) | $231 | $655 | $951 | $1365 |

---

The accompanying notes are an integral part of the consolidated financial statements.

------

EVEREST REINSURANCE HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF

CHANGES IN STOCKHOLDER'S EQUITY

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| (In millions of U.S. dollars, except share amounts) | 2025 | 2024 | 2025 | 2024 |
|  | (unaudited) | (unaudited) | (unaudited) | (unaudited) |
| COMMON STOCK (shares outstanding): |  |  |  |  |
| Balance, beginning of period | 1000 | 1000 | 1000 | 1000 |
| Balance, end of period | 1000 | 1000 | 1000 | 1000 |
| ADDITIONAL PAID-IN CAPITAL: |  |  |  |  |
| Balance, beginning of period | $1103 | $1103 | $1103 | $1102 |
| Balance, end of period | 1103 | 1103 | 1103 | 1103 |
| ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), NET OF DEFERRED INCOME TAXES: |  |  |  |  |
| Balance, beginning of period | (104) | (372) | (400) | (287) |
| Net increase (decrease) during the period | 114 | 376 | 410 | 290 |
| Balance, end of period | 10 | 3 | 10 | 3 |
| RETAINED EARNINGS: |  |  |  |  |
| Balance, beginning of period | 7017 | 7167 | 6593 | 6372 |
| Net income (loss) | 117 | 279 | 541 | 1075 |
| Balance, end of period | 7134 | 7447 | 7134 | 7447 |
| TOTAL STOCKHOLDER'S EQUITY, END OF PERIOD | $8247 | $8553 | $8247 | $8553 |

---

The accompanying notes are an integral part of the consolidated financial statements.

------

EVEREST REINSURANCE HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

---

| | | |
|:---|:---|:---|
| | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| (In millions of U.S. dollars) | 2025 | 2024 |
|  | (unaudited) | (unaudited) |
| CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |
| Net income (loss) | $541 | $1075 |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Decrease (increase) in premiums receivable | (343) | (157) |
| &nbsp;&nbsp;&nbsp;Decrease (increase) in funds held by reinsureds, net | (17) | (34) |
| &nbsp;&nbsp;&nbsp;Decrease (increase) in reinsurance recoverables | (163) | 99 |
| &nbsp;&nbsp;&nbsp;Decrease (increase) in income taxes | 61 | (59) |
| &nbsp;&nbsp;&nbsp;Decrease (increase) in prepaid reinsurance premiums | (86) | (175) |
| &nbsp;&nbsp;&nbsp;Increase (decrease) in reserve for losses and loss adjustment expenses | 1851 | 1063 |
| &nbsp;&nbsp;&nbsp;Increase (decrease) in unearned premiums | (24) | 389 |
| &nbsp;&nbsp;&nbsp;Increase (decrease) in amounts due to reinsurers | 287 | 245 |
| &nbsp;&nbsp;&nbsp;Increase (decrease) in losses in course of payment | 23 | 16 |
| &nbsp;&nbsp;&nbsp;Change in equity adjustments in limited partnerships | (111) | (138) |
| &nbsp;&nbsp;&nbsp;Distribution of limited partnership income | 58 | 61 |
| &nbsp;&nbsp;&nbsp;Change in other assets and liabilities, net | (158) | (319) |
| &nbsp;&nbsp;&nbsp;Non-cash compensation expense | 28 | 39 |
| &nbsp;&nbsp;&nbsp;Amortization of bond premium (accrual of bond discount) | (74) | (68) |
| &nbsp;&nbsp;&nbsp;Net (gains) losses on investments | (56) | (1) |
| Net cash provided by (used in) operating activities | 1816 | 2035 |
| CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |
| Proceeds from fixed maturities matured/called/repaid - available for sale | 2377 | 1806 |
| Proceeds from fixed maturities sold - available for sale | 303 | 786 |
| Proceeds from fixed maturities matured/called/repaid - held to maturity | 156 | 125 |
| Proceeds from fixed maturities sold - held to maturity | 10 |  |
| Proceeds from equity securities sold | 3 | 13 |
| Distributions from other invested assets | 177 | 195 |
| Cost of fixed maturities acquired - available for sale | (4821) | (4107) |
| Cost of fixed maturities acquired - held to maturity | (6) | (46) |
| Cost of equity securities acquired | (2) | (2) |
| Cost of other invested assets acquired | (193) | (234) |
| Net change in short-term investments | 253 | (735) |
| Net change in unsettled securities transactions | (73) | 177 |
| Net cash provided by (used in) investing activities | (1816) | (2023) |
| CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |
| Tax benefit from share-based compensation, net of expense |  |  |
| Net cash provided by (used in) financing activities |  |  |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH | 34 | 25 |
| Net increase (decrease) in cash | 34 | 39 |
| Cash, beginning of period | 616 | 527 |
| Cash, end of period | $650 | $566 |
| SUPPLEMENTAL CASH FLOW INFORMATION: |  |  |
| &nbsp;&nbsp;&nbsp;Income taxes paid (recovered) | $19 | $324 |
| &nbsp;&nbsp;&nbsp;Interest paid | 104 | 90 |
| NON-CASH TRANSACTIONS |  |  |
| Non-cash limited partnership distribution | $8 | $21 |

---

The accompanying notes are an integral part of the consolidated financial statements.

------

**NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)**

**For the Three and Nine Months Ended September 30, 2025 and 2024**

**1. GENERAL**

Everest Reinsurance Holdings, Inc. ("Holdings"), a Delaware company and direct subsidiary of Everest Underwriting Group (Ireland) Limited, which is a direct subsidiary of Everest Group, Ltd. ("Group"), through its subsidiaries, principally provides property and casualty reinsurance and insurance in the United States of America and internationally. As used in this document, "Company" and "We" means Holdings and its subsidiaries. "Bermuda Re" means Everest Reinsurance (Bermuda), Ltd., a subsidiary of Group; "Everest Re" means Everest Reinsurance Company, a subsidiary of Holdings, and its subsidiaries (unless the context otherwise requires).

Unless noted otherwise, all tabular dollar amounts are in millions of United States ("U.S.") dollars ("U.S. dollars" or "$"). Some amounts may not reconcile due to rounding.

**2. BASIS OF PRESENTATION**

The unaudited consolidated financial statements of the Company as of September 30, 2025 and December 31, 2024 and for the three and nine months ended September 30, 2025 and 2024 include all adjustments, consisting of normal recurring accruals, which, in the opinion of management, are necessary for a fair statement of the results on an interim basis. Certain financial information, which is normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"), has been omitted since it is not required for interim reporting purposes. The December 31, 2024 consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The results for the three and nine months ended September 30, 2025 and 2024 are not necessarily indicative of the results for a full year. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the years ended December 31, 2024, 2023 and 2022, included in the Company's most recent Form 10-K filing.

The Company consolidates the results of operations and financial position of all voting interest entities ("VOE") in which the Company has a controlling financial interest and all variable interest entities ("VIE") in which the Company is considered to be the primary beneficiary. The consolidation assessment, including the determination as to whether an entity qualifies as a VIE or VOE, depends on the facts and circumstances surrounding each entity.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities (and disclosure of contingent assets and liabilities) at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Ultimate actual results could differ, possibly materially, from those estimates.

All intercompany accounts and transactions have been eliminated.

<u>Adoption of New Accounting Standards</u>

The Company did not adopt any new accounting standards that had a material impact during the three and nine months ended September 30, 2025.

<u>Future Adoption of Recently Issued Accounting Standards</u>

The Company assessed the adoption impacts of recently issued accounting standards that are effective after 2025 by the Financial Accounting Standards Board ("FASB") on the Company's consolidated financial statements. Additionally, the Company assessed whether there have been material updates to previously issued accounting standards that are effective after 2025. There were no accounting standards identified, other than those directly referenced below, that are expected to have a material impact on Holdings.

*Improvements to Income Tax Disclosures.* In December 2023, the FASB issued Accounting Standard Update No. 2023-09, which requires expanded income tax disclosures, including the disaggregation of existing disclosures related to the tax rate reconciliation and income taxes paid. The guidance is effective for annual periods beginning after December 15, 2024. Prospective application is required, with retrospective application permitted. The Company is currently evaluating the effect the updated guidance will have on the Company's financial statement disclosures.

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*Disaggregation of Income Statement Expenses.* In November 2024, the FASB issued Accounting Standard Update No. 2024-03, which requires additional disclosure about specific expense categories included in the income statement. The guidance is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Prospective application is required, with retrospective application permitted. The Company is currently evaluating the effect the updated guidance will have on the Company's financial statement disclosures.

**3. 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:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | At September 30, 2025 | At September 30, 2025 | At September 30, 2025 | At September 30, 2025 | At September 30, 2025 |
| (Dollars in millions) | Amortized<br>Cost | Allowance for<br>Credit Losses | Unrealized<br>Appreciation | Unrealized<br>Depreciation | Fair<br>Value |
| Fixed maturity securities - available for sale |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Treasury securities and obligations of |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. government agencies and corporations | $248 | $— | $— | $(6) | $241 |
| &nbsp;&nbsp;&nbsp;Obligations of U.S. States and political subdivisions | 55 |  |  | (6) | 49 |
| &nbsp;&nbsp;&nbsp;Corporate securities | 5878 | (38) | 132 | (90) | 5883 |
| &nbsp;&nbsp;&nbsp;Asset-backed securities | 4519 | (14) | 20 | (13) | 4513 |
| &nbsp;&nbsp;&nbsp;Mortgage-backed securities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency commercial | 402 |  | 9 | (1) | 409 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-agency commercial | 454 |  | 1 | (23) | 431 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency residential | 3735 |  | 56 | (104) | 3687 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-agency residential | 1404 |  | 33 | (1) | 1436 |
| &nbsp;&nbsp;&nbsp;Foreign government securities | 1023 |  | 18 | (31) | 1010 |
| &nbsp;&nbsp;&nbsp;Foreign corporate securities | 2150 |  | 56 | (51) | 2155 |
| Total fixed maturity securities - available for sale | $19867 | $(51) | $326 | $(327) | $19815 |

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(Some amounts may not reconcile due to rounding.)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 |
| (Dollars in millions) | Amortized<br>Cost | Allowance for<br>Credit Losses | Unrealized<br>Appreciation | Unrealized<br>Depreciation | Fair<br>Value |
| Fixed maturity securities - available for sale |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Treasury securities and obligations of |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. government agencies and corporations  | $266 | $— | $— | $(11) | $255 |
| &nbsp;&nbsp;&nbsp;Obligations of U.S. States and political subdivisions | 75 |  |  | (5) | 70 |
| &nbsp;&nbsp;&nbsp;Corporate securities | 4156 | (35) | 37 | (160) | 3997 |
| &nbsp;&nbsp;&nbsp;Asset-backed securities | 5321 |  | 24 | (35) | 5311 |
| &nbsp;&nbsp;&nbsp;Mortgage-backed securities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial | 479 |  |  | (38) | 441 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency residential | 3306 |  | 10 | (166) | 3151 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-agency residential | 1164 |  | 9 | (11) | 1161 |
| &nbsp;&nbsp;&nbsp;Foreign government securities | 1013 |  | 8 | (52) | 970 |
| &nbsp;&nbsp;&nbsp;Foreign corporate securities | 1905 |  | 17 | (91) | 1831 |
| Total fixed maturity securities - available for sale | $17685 | $(36) | $106 | $(569) | $17186 |

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(Some amounts may not reconcile due to rounding.)

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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:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | At September 30, 2025 | At September 30, 2025 | At September 30, 2025 | At September 30, 2025 | At September 30, 2025 |
| (Dollars in millions) | Amortized<br>Cost | Allowance for<br>Credit Losses | Unrealized<br>Appreciation | Unrealized<br>Depreciation | Fair<br>Value |
| Fixed maturity securities – held to maturity |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Corporate securities | $167 | $(2) | $7 | $(1) | $170 |
| &nbsp;&nbsp;&nbsp;Asset-backed securities | 364 | (3) | 6 | (8) | 358 |
| &nbsp;&nbsp;&nbsp;Mortgage-backed securities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial | 1 |  |  |  | 1 |
| &nbsp;&nbsp;&nbsp;Foreign corporate securities | 79 | (1) | 6 |  | 84 |
| Total fixed maturity securities - held to maturity | $610 | $(6) | $19 | $(10) | $613 |

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(Some amounts may not reconcile due to rounding.)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 | At December 31, 2024 |
| (Dollars in millions) | Amortized<br>Cost | Allowance for<br>Credit Losses | Unrealized<br>Appreciation | Unrealized<br>Depreciation | Fair<br>Value |
| Fixed maturity securities - held to maturity |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Corporate securities | $177 | $(2) | $5 | $(4) | $175 |
| &nbsp;&nbsp;&nbsp;Asset-backed securities | 484 | (4) | 5 | (8) | 477 |
| &nbsp;&nbsp;&nbsp;Mortgage-backed securities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial | 21 |  |  |  | 21 |
| &nbsp;&nbsp;&nbsp;Foreign corporate securities | 84 | (1) | 4 |  | 86 |
| Total fixed maturity securities - held to maturity | $765 | $(8) | $14 | $(12) | $759 |

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(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.

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| | | | | |
|:---|:---|:---|:---|:---|
| | At September 30, 2025 | At September 30, 2025 | At December 31, 2024 | At December 31, 2024 |
| (Dollars in millions) | Amortized<br>Cost | Fair<br>Value | Amortized<br>Cost | Fair<br>Value |
| Fixed maturity securities – available for sale |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due in one year or less | $672 | $653 | $383 | $369 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due after one year through five years | 4139 | 4127 | 3262 | 3145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due after five years through ten years | 3436 | 3480 | 2506 | 2406 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due after ten years | 1107 | 1078 | 1264 | 1202 |
| Asset-backed securities | 4519 | 4513 | 5321 | 5311 |
| Mortgage-backed securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Agency commercial | 402 | 409 |  |  |
| &nbsp;&nbsp;&nbsp;Non-agency commercial | 454 | 431 | 479 | 441 |
| &nbsp;&nbsp;&nbsp;Agency residential | 3735 | 3687 | 3306 | 3151 |
| &nbsp;&nbsp;&nbsp;Non-agency residential | 1404 | 1436 | 1164 | 1161 |
| Total fixed maturity securities - available for sale | $19867 | $19815 | $17685 | $17186 |

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(Some amounts may not reconcile due to rounding.)

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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.

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| | | | | |
|:---|:---|:---|:---|:---|
| | At September 30, 2025 | At September 30, 2025 | At December 31, 2024 | At December 31, 2024 |
| (Dollars in millions) | Amortized<br>Cost | Fair<br>Value | Amortized<br>Cost | Fair<br>Value |
| Fixed maturity securities - held to maturity |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Due in one year or less | $5 | $5 | $7 | $7 |
| &nbsp;&nbsp;Due after one year through five years | 88 | 89 | 67 | 67 |
| &nbsp;&nbsp;Due after five years through ten years | 4 | 4 | 37 | 35 |
| &nbsp;&nbsp;Due after ten years | 149 | 156 | 150 | 152 |
| Asset-backed securities | 364 | 358 | 484 | 477 |
| Mortgage-backed securities |  |  |  |  |
| &nbsp;&nbsp;Commercial | 1 | 1 | 21 | 21 |
| Total fixed maturity securities - held to maturity | $610 | $613 | $765 | $759 |

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(Some amounts may not reconcile due to rounding.)

The changes in net URA(D) for the Company's investments are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| (Dollars in millions) | 2025 | 2024 | 2025 | 2024 |
| Increase (decrease) during the period between the fair value and cost of |  |  |  |  |
| &nbsp;&nbsp;investments carried at fair value, and deferred taxes thereon: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed maturity securities - available for sale, held to maturity and short-term investments | $158 | $424 | $467 | $319 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in URA(D), pre-tax | 158 | 424 | 467 | 319 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax benefit (expense) | (32) | (89) | (97) | (67) |
| Change in URA(D), net of deferred taxes, included in stockholders' equity  | $126 | $335 | $370 | $252 |

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(Some amounts may not reconcile due to rounding.)

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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:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Duration of Unrealized Loss at September 30, 2025 By Security Type | Duration of Unrealized Loss at September 30, 2025 By Security Type | Duration of Unrealized Loss at September 30, 2025 By Security Type | Duration of Unrealized Loss at September 30, 2025 By Security Type | Duration of Unrealized Loss at September 30, 2025 By Security Type | Duration of Unrealized Loss at September 30, 2025 By Security Type |
| | Less than 12 months | Less than 12 months | Greater than 12 months | Greater than 12 months | Total | Total |
| (Dollars in millions) | Fair<br>Value | Gross<br>Unrealized<br>Depreciation | Fair<br>Value | Gross<br>Unrealized<br>Depreciation | Fair<br>Value | Gross<br>Unrealized<br>Depreciation |
| Fixed maturity securities - available for sale |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Treasury securities and obligations of |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. government agencies and corporations | $34 | $(1) | $195 | $(5) | $229 | $(6) |
| &nbsp;&nbsp;&nbsp;Obligations of U.S. States and political subdivisions | 8 |  | 36 | (5) | 44 | (6) |
| &nbsp;&nbsp;&nbsp;Corporate securities | 533 | (14) | 960 | (76) | 1493 | (90) |
| &nbsp;&nbsp;&nbsp;Asset-backed securities | 402 | (5) | 226 | (8) | 629 | (13) |
| &nbsp;&nbsp;&nbsp;Mortgage-backed securities |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency commercial | 88 |  | 17 | (1) | 105 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-agency commercial | 47 | (3) | 355 | (20) | 403 | (23) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency residential | 196 | (2) | 891 | (101) | 1087 | (104) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-agency residential | 146 | (1) | 18 |  | 163 | (1) |
| &nbsp;&nbsp;&nbsp;Foreign government securities | 178 | (3) | 277 | (28) | 454 | (31) |
| &nbsp;&nbsp;&nbsp;Foreign corporate securities | 388 | (6) | 496 | (45) | 884 | (51) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 2021 | (36) | 3470 | (291) | 5491 | (326) |
| Securities where an allowance for credit loss was recorded | 2 |  | 15 |  | 17 | (1) |
| Total fixed maturity securities - available for sale | $2023 | $(36) | $3485 | $(291) | $5508 | $(327) |

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(Some amounts may not reconcile due to rounding.)

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Duration of Unrealized Loss at September 30, 2025 By Maturity | Duration of Unrealized Loss at September 30, 2025 By Maturity | Duration of Unrealized Loss at September 30, 2025 By Maturity | Duration of Unrealized Loss at September 30, 2025 By Maturity | Duration of Unrealized Loss at September 30, 2025 By Maturity | Duration of Unrealized Loss at September 30, 2025 By Maturity |
| | Less than 12 months | Less than 12 months | Greater than 12 months | Greater than 12 months | Total | Total |
| (Dollars in millions) | Fair<br>Value | Gross<br>Unrealized<br>Depreciation | Fair<br>Value | Gross<br>Unrealized<br>Depreciation | Fair<br>Value | Gross<br>Unrealized<br>Depreciation |
| Fixed maturity securities - available for sale |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Due in one year or less | $50 | $(1) | $365 | $(13) | $415 | $(14) |
| &nbsp;&nbsp;&nbsp;Due in one year through five years | 487 | (8) | 957 | (67) | 1444 | (75) |
| &nbsp;&nbsp;&nbsp;Due in five years through ten years | 290 | (3) | 403 | (50) | 693 | (53) |
| &nbsp;&nbsp;&nbsp;Due after ten years | 314 | (12) | 238 | (29) | 553 | (42) |
| Asset-backed securities | 402 | (5) | 226 | (8) | 629 | (13) |
| Mortgage-backed securities | 477 | (7) | 1281 | (123) | 1758 | (130) |
| &nbsp;&nbsp;&nbsp;Total | 2021 | (36) | 3470 | (291) | 5491 | (326) |
| Securities where an allowance for credit loss was recorded | 2 |  | 15 |  | 17 | (1) |
| Total fixed maturity securities - available for sale | $2023 | $(36) | $3485 | $(291) | $5508 | $(327) |

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(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 September 30, 2025 were $5.5 billion and $327 million, respectively. The fair value of securities for the single issuer (the Australian government), whose securities comprised the largest unrealized loss position at September 30, 2025, amounted to less than 0.2% 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 September 30, 2025 comprised less than 0.4% 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 $36 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. Of these unrealized losses, $34 million were related to securities that were rated investment grade by at least one nationally recognized rating agency. The $291 million of unrealized losses related to fixed maturity securities - available for sale in

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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. Of these unrealized losses, $283 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 September 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:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Duration of Unrealized Loss at December 31, 2024 By Security Type | Duration of Unrealized Loss at December 31, 2024 By Security Type | Duration of Unrealized Loss at December 31, 2024 By Security Type | Duration of Unrealized Loss at December 31, 2024 By Security Type | Duration of Unrealized Loss at December 31, 2024 By Security Type | Duration of Unrealized Loss at December 31, 2024 By Security Type |
| | Less than 12 months | Less than 12 months | Greater than 12 months | Greater than 12 months | Total | Total |
| (Dollars in millions) | Fair<br>Value | Gross<br>Unrealized<br>Depreciation | Fair<br>Value | Gross<br>Unrealized<br>Depreciation | Fair<br>Value | Gross<br>Unrealized<br>Depreciation |
| Fixed maturity securities - available for sale |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Treasury securities and obligations of |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. government agencies and corporations | $43 | $(1) | $187 | $(10) | $230 | $(11) |
| &nbsp;&nbsp;&nbsp;Obligations of U.S. States and political subdivisions | 9 |  | 40 | (5) | 48 | (5) |
| &nbsp;&nbsp;&nbsp;Corporate securities | 1502 | (42) | 1169 | (116) | 2670 | (160) |
| &nbsp;&nbsp;&nbsp;Asset-backed securities | 843 | (17) | 501 | (18) | 1344 | (35) |
| &nbsp;&nbsp;&nbsp;Mortgage-backed securities |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial | 6 |  | 408 | (38) | 415 | (38) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency residential | 1784 | (70) | 583 | (95) | 2367 | (166) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-agency residential | 650 | (11) | 24 |  | 674 | (11) |
| &nbsp;&nbsp;&nbsp;Foreign government securities | 298 | (11) | 376 | (41) | 674 | (52) |
| &nbsp;&nbsp;&nbsp;Foreign corporate securities | 689 | (18) | 569 | (72) | 1258 | (91) |
| Total | $5823 | $(171) | $3856 | $(397) | $9680 | $(567) |
| Securities where an allowance for credit loss was recorded | 17 | (1) |  |  | 17 | (1) |
| Total fixed maturity securities - available for sale | $5841 | $(172) | $3856 | $(397) | $9697 | $(569) |

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(Some amounts may not reconcile due to rounding.)

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Duration of Unrealized Loss at December 31, 2024 By Maturity | Duration of Unrealized Loss at December 31, 2024 By Maturity | Duration of Unrealized Loss at December 31, 2024 By Maturity | Duration of Unrealized Loss at December 31, 2024 By Maturity | Duration of Unrealized Loss at December 31, 2024 By Maturity | Duration of Unrealized Loss at December 31, 2024 By Maturity |
| | Less than 12 months | Less than 12 months | Greater than 12 months | Greater than 12 months | Total | Total |
| (Dollars in millions) | Fair<br>Value | Gross<br>Unrealized<br>Depreciation | Fair<br>Value | Gross<br>Unrealized<br>Depreciation | Fair<br>Value | Gross<br>Unrealized<br>Depreciation |
| Fixed maturity securities - available for sale |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Due in one year or less | $53 | $(2) | $166 | $(11) | $219 | $(13) |
| &nbsp;&nbsp;&nbsp;Due in one year through five years | 895 | (22) | 1313 | (107) | 2209 | (129) |
| &nbsp;&nbsp;&nbsp;Due in five years through ten years | 1127 | (23) | 572 | (92) | 1699 | (115) |
| &nbsp;&nbsp;&nbsp;Due after ten years | 465 | (26) | 289 | (35) | 754 | (61) |
| Asset-backed securities | 843 | (17) | 501 | (18) | 1344 | (35) |
| Mortgage-backed securities | 2441 | (81) | 1015 | (134) | 3455 | (215) |
| Total | $5823 | $(171) | $3856 | $(397) | $9680 | $(567) |
| Securities where an allowance for credit loss was recorded | 17 | (1) |  |  | 17 | (1) |
| Total fixed maturity securities - available for sale | $5841 | $(172) | $3856 | $(397) | $9697 | $(569) |

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(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

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- 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:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| (Dollars in millions) | 2025 | 2024 | 2025 | 2024 |
| Fixed maturities | $258 | $257 | $790 | $757 |
| Equity securities | 1 | 1 | 3 | 3 |
| Short-term investments and cash | 25 | 28 | 68 | 72 |
| Other invested assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Limited partnerships | 48 | (4) | 47 | 64 |
| &nbsp;&nbsp;&nbsp;Dividends from preferred shares of affiliate | 8 | 8 | 23 | 23 |
| &nbsp;&nbsp;&nbsp;Other | 36 | 36 | 87 | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross investment income before adjustments | 376 | 326 | 1019 | 1005 |
| Funds held interest income (expense) | 1 | 1 | 7 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross investment income | 377 | 327 | 1025 | 1011 |
| Investment expenses | 10 | 11 | 25 | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income | $368 | $316 | $1000 | $976 |

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(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 $1.7 billion in limited partnerships and private placement loan securities at September 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 September 30, 2025 and December 31, 2024, respectively.

Other invested assets, at fair value, as of September 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.

<u>Variable Interest Entities</u>

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

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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 September 30, 2025 and December 31, 2024, the Company did not hold any investments 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 September 30, 2025 and December 31, 2024 is limited to the total carrying value of $1.9 billion, which are included in general and limited partnerships.

As of September 30, 2025, the Company has outstanding commitments totaling $698 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:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| (Dollars in millions) | 2025 | 2024 | 2025 | 2024 |
| Fixed maturity securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Allowance for credit losses | $(12) | $(9) | $(14) | $(3) |
| &nbsp;&nbsp;&nbsp;Net realized gains (losses) from dispositions | (35) | (2) | (38) | (23) |
| Equity securities, fair value |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized gains (losses) from dispositions |  |  |  | 1 |
| &nbsp;&nbsp;&nbsp;Gains (losses) from fair value adjustments | 1 | 1 | 3 | (2) |
| Other invested assets, fair value |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Gains (losses) from fair value adjustments | 9 | 47 | 104 | 28 |
| Total net gains (losses) on investments | $(37) | $39 | $56 | $1 |

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(Some amounts may not reconcile due to rounding.)

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The following tables provide a roll forward of the Company's beginning and ending balance of allowance for credit losses for the periods indicated:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale |
| | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2025 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2025 |
| | Corporate<br>Securities | Asset Backed<br>Securities | Total | Corporate<br>Securities | Asset Backed<br>Securities | Total |
| (Dollars in millions) |  |  |  |  |  |  |
| Beginning balance | $(39) | $— | $(40) | $(35) | $— | $(36) |
| &nbsp;&nbsp;Credit losses on securities where credit |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;losses were not previously recorded | (17) | (14) | (30) | (21) | (14) | (34) |
| &nbsp;&nbsp;Increases in allowance on previously |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; impaired securities | (6) |  | (6) | (6) |  | (6) |
| &nbsp;&nbsp;Decreases in allowance on previously |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;impaired securities |  |  |  |  |  |  |
| &nbsp;&nbsp;Reduction in allowance due to disposals | 25 |  | 25 | 25 |  | 25 |
| Balance, end of period | $(38) | $(14) | $(51) | $(38) | $(14) | $(51) |

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(Some amounts may not reconcile due to rounding.)

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale |
| | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 |
| (Dollars in millions) | Corporate<br>Securities | Asset Backed<br>Securities | Total | Corporate<br>Securities | Asset Backed<br>Securities | Total |
| Beginning balance | $(42) | $— | $(42) | $(47) | $— | $(48) |
| &nbsp;&nbsp;Credit losses on securities where credit |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;losses were not previously recorded | (9) |  | (9) | (9) |  | (9) |
| &nbsp;&nbsp;Increases in allowance on previously |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;impaired securities |  |  |  |  |  |  |
| &nbsp;&nbsp;Decreases in allowance on previously |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;impaired securities |  |  |  |  |  |  |
| &nbsp;&nbsp;Reduction in allowance due to disposals |  |  |  | 5 |  | 5 |
| Balance, end of period | $(50) | $— | $(51) | $(50) | $— | $(51) |

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(Some amounts may not reconcile due to rounding.)

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity |
| | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2025 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2025 |
| | Corporate<br>Securities | Asset Backed<br>Securities | Foreign<br>Corporate<br>Securities | Total | Corporate<br>Securities | Asset<br>Backed<br>Securities | Foreign<br>Corporate<br>Securities | Total |
| (Dollars in millions) |  |  |  |  |  |  |  |  |
| Beginning balance | $(2) | $(4) | $(1) | $(7) | $(2) | $(4) | $(1) | $(8) |
| &nbsp;&nbsp;Credit losses on securities where credit |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;losses were not previously recorded |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Increases in allowance on previously |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;impaired securities |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Decreases in allowance on previously |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;impaired securities |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Reduction in allowance due to disposals |  |  |  |  |  | 1 | 1 | 2 |
| Balance, end of period | $(2) | $(3) | $(1) | $(6) | $(2) | $(3) | $(1) | $(6) |

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(Some amounts may not reconcile due to rounding.)

------

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity | Roll Forward of Allowance for Credit Losses – Fixed Maturities - Held to Maturity |
| | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 |
| (Dollars in millions) | Corporate<br>Securities | Asset<br>Backed<br>Securities | Foreign<br>Corporate<br>Securities | Total | Corporate<br>Securities | Asset<br>Backed<br>Securities | Foreign<br>Corporate<br>Securities | Total |
| Beginning balance | $(2) | $(5) | $(1) | $(8) | $(2) | $(5) | $(1) | $(8) |
| Credit losses on securities where credit |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;losses were not previously recorded |  |  |  |  |  |  | (1) | (1) |
| Increases in allowance on previously |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;impaired securities |  |  |  |  |  |  |  |  |
| Decreases in allowance on previously |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;impaired securities |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Reduction in allowance due to disposals |  |  |  |  |  | 1 |  | 1 |
| 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:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| (Dollars in millions) | 2025 | 2024 | 2025 | 2024 |
| Proceeds from sales of fixed maturity securities - available for sale | $160 | $138 | $303 | $786 |
| Gross gains from dispositions | 6 | 2 | 12 | 15 |
| Gross losses from dispositions | (41) | (4) | (49) | (37) |
| 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 | $— | $— | $3 | $13 |
| Gross gains from dispositions |  |  |  | 2 |
| Gross losses from dispositions |  |  |  |  |

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(Some amounts may not reconcile due to rounding.)

During the nine months ended September 30, 2025, the Company sold fixed maturity securities - held to maturity with a net carrying amount of $11 million, which had realized losses of $1 million as part of the sale. The Company's decision to sell was due to significant credit deterioration of the issuer of the securities.

**4. FAIR VALUE**

GAAP guidance regarding fair value measurements addresses how companies should measure fair value when they are required to use fair value measures for recognition or disclosure purposes under GAAP and provides a common definition of fair value to be used throughout GAAP. It defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly fashion between market participants at the measurement date. In addition, it establishes a three-level valuation hierarchy for the disclosure of fair value measurements. The valuation hierarchy is based on the transparency of inputs to the valuation of an asset or liability. The level in the hierarchy within which a

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given fair value measurement falls is determined based on the lowest level input that is significant to the measurement, with Level 1 being the highest priority and Level 3 being the lowest priority.

The levels in the hierarchy are defined as follows:

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| | |
|:---|:---|
| Level 1: | Inputs to the valuation methodology are observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in an active market; |
| Level 2: | Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; |
| Level 3: | Inputs to the valuation methodology are unobservable and significant to the fair value measurement. |

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The Company's fixed maturity and equity securities are managed both internally and on an external basis by independent, professional investment managers using portfolio guidelines approved by the Company. The Company obtains prices from nationally recognized pricing services. These services seek to utilize market data and observations in their evaluation process. These services use pricing applications that vary by asset class and incorporate available market information. When fixed maturity securities do not trade on a daily basis, the services will apply available information through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing. In addition, they use model processes, such as the Option Adjusted Spread model to develop prepayment and interest rate scenarios for securities that have prepayment features.

The Company does not make any changes to prices received from the pricing services. In addition, the Company has procedures in place to review the reasonableness of the prices from the service providers and may request verification of the prices. The Company also continually performs quantitative and qualitative analysis of prices, including but not limited to initial and ongoing review of pricing methodologies, review of prices obtained from pricing services and third party investment asset managers, review of pricing statistics and trends and comparison of prices for certain securities with a secondary price source for reasonableness. No material variances were noted during these price validation procedures. In limited situations, where financial markets are inactive or illiquid, the Company may use its own assumptions about future cash flows and risk-adjusted discount rates to determine fair value.

At September 30, 2025 and December 31, 2024, $2.4 billion and $2.2 billion, respectively, of fixed maturities were fair valued using unobservable inputs. The majority of these fixed maturities were valued by investment managers' valuation committees and many of these fair values were substantiated by valuations from independent third parties. The Company has procedures in place to evaluate these independent third party valuations.

Equity securities denominated in U.S. currency with quoted prices in active markets for identical assets are categorized as Level 1, since the quoted prices are directly observable. Equity securities traded on foreign exchanges are categorized as Level 2 due to the added input of a foreign exchange conversion rate to determine fair value. The Company uses foreign currency exchange rates published by nationally recognized sources.

Fixed maturity securities listed in the tables have been categorized as Level 2, since a particular security may not have traded but the pricing services are able to use valuation models with observable market inputs such as interest rate yield curves and prices for similar fixed maturity securities in terms of issuer, maturity and seniority. For foreign government securities and foreign corporate securities, the fair values are provided by the third party pricing services in local currencies, and where applicable, are converted to U.S. dollars using currency exchange rates from nationally recognized sources.

In addition, some of the fixed maturities with fair values categorized as Level 3 result when prices are not available from the nationally recognized pricing services, are obtained from investment managers and are derived using unobservable inputs. The Company will value the securities with unobservable inputs using comparable market information or receive fair values from investment managers. The investment managers may obtain non-binding price quotes for the securities from brokers. The single broker quotes are provided by market makers or broker-dealers who are recognized as market participants in the markets in which they are providing the quotes. The prices received from brokers are reviewed for reasonableness by the third party asset managers and the Company. If the broker quotes are for foreign denominated securities, the quotes are converted to U.S. dollars using currency exchange rates from nationally recognized sources.

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The composition and valuation inputs for the presented fixed maturities categories Level 1 and Level 2 are as follows:

• U.S. Treasury securities and obligations of U.S. government agencies and corporations are primarily comprised of U.S. Treasury bonds, and the fair value is based on observable market inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields;

• Obligations of U.S. states and political subdivisions are comprised of state and municipal bond issuances, and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads;

• Corporate securities are primarily comprised of U.S. corporate and public utility bond issuances, and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads;

• Asset-backed and mortgage-backed securities fair values are based on observable inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields and cash flow models using observable inputs such as prepayment speeds, collateral performance and default spreads;

• Foreign government securities are comprised of global non-U.S. sovereign bond issuances, and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, are converted to U.S. dollars using an exchange rate from a nationally recognized source; and

• Foreign corporate securities are comprised of global non-U.S. corporate bond issuances, and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, are converted to U.S. dollars using an exchange rate from a nationally recognized source.

Other invested assets, at fair value, were categorized as Level 3 at September 30, 2025 and December 31, 2024, because the balance was comprised of a privately placed convertible preferred stock issued by an affiliate. The stock was received in exchange for shares of the Company's parent. The 25-year redeemable, convertible preferred stock with a 1.75% coupon is valued using a pricing model. The pricing model includes observable inputs such as the U.S. Treasury yield curve rate T note constant maturity 10-year and the swap rate on the Company's June 1, 2044, 4.868% senior notes, with adjustments to reflect the Company's own assumptions about the inputs that market participants would use in pricing the asset.

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The following tables present the fair value measurement levels for all assets, which the Company has recorded at fair value as of the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| | | Fair Value Measurement Using | Fair Value Measurement Using | Fair Value Measurement Using |
| (Dollars in millions) | September 30, 2025 | Quoted Prices <br>in Active<br>Markets for<br>Identical <br>Assets<br>(Level 1) | Significant<br>Other<br>Observable<br>Inputs<br>(Level 2) | Significant<br>Unobservable<br>Inputs<br>(Level 3) |
| Assets: |  |  |  |  |
| Fixed maturities - available for sale |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Treasury securities and obligations of U.S. government |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;agencies and corporations | $241 | $— | $241 | $— |
| &nbsp;&nbsp;&nbsp;Obligations of U.S. States and political subdivisions | 49 |  | 49 |  |
| &nbsp;&nbsp;&nbsp;Corporate securities | 5883 |  | 5481 | 402 |
| &nbsp;&nbsp;&nbsp;Asset-backed securities | 4513 |  | 2534 | 1979 |
| &nbsp;&nbsp;&nbsp;Mortgage-backed securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency commercial | 409 |  | 409 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-agency commercial | 431 |  | 431 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency residential | 3687 |  | 3687 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-agency residential | 1436 |  | 1436 |  |
| &nbsp;&nbsp;&nbsp;Foreign government securities | 1010 |  | 1010 |  |
| &nbsp;&nbsp;&nbsp;Foreign corporate securities | 2155 |  | 2141 | 14 |
| Total fixed maturities - available for sale | 19815 |  | 17421 | 2394 |
| Equity securities, fair value | 113 | 87 | 23 | 3 |
| Other invested assets, fair value | 1628 |  |  | 1628 |

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(Some amounts may not reconcile due to rounding.)

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| | | | | |
|:---|:---|:---|:---|:---|
| | Fair Value Measurement Using | Fair Value Measurement Using | Fair Value Measurement Using | Fair Value Measurement Using |
| (Dollars in millions) | December 31, 2024 | Quoted Prices <br>in Active<br>Markets for<br>Identical <br>Assets<br>(Level 1) | Significant<br>Other<br>Observable<br>Inputs<br>(Level 2) | Significant<br>Unobservable<br>Inputs<br>(Level 3) |
| Assets: |  |  |  |  |
| Fixed maturities - available for sale |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Treasury securities and obligations of U.S. government |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;agencies and corporations | $255 | $— | $255 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Obligations of U.S. States and political subdivisions | 70 |  | 70 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate securities | 3997 |  | 3479 | 518 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset-backed securities | 5311 |  | 3654 | 1657 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial | 441 |  | 441 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency residential | 3151 |  | 3151 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-agency residential | 1161 |  | 1161 |  |
| &nbsp;&nbsp;&nbsp;Foreign government securities | 970 |  | 970 |  |
| &nbsp;&nbsp;&nbsp;Foreign corporate securities | 1831 |  | 1817 | 14 |
| Total fixed maturities - available for sale | 17186 |  | 14997 | 2189 |
| Equity securities, fair value | 110 | 79 | 26 | 5 |
| Other invested assets, fair value | 1523 |  |  | 1523 |

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(Some amounts may not reconcile due to rounding.)

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The following tables present the activity under Level 3, fair value measurements using significant unobservable inputs for fixed maturities - available for sale, for the periods indicated:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | Total Fixed Maturities - Available for Sale | Total Fixed Maturities - Available for Sale | Total Fixed Maturities - Available for Sale | Total Fixed Maturities - Available for Sale | Total Fixed Maturities - Available for Sale | Total Fixed Maturities - Available for Sale | Total Fixed Maturities - Available for Sale | Total Fixed Maturities - Available for Sale |
| | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2025 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2025 |
| (Dollars in millions) | Corporate<br>Securities | Asset Backed<br>Securities | Foreign<br>Corporate | Total | Corporate<br>Securities | Asset Backed<br>Securities | Foreign<br>Corporate | Total |
| Beginning balance of fixed maturities | $436 | $1862 | $14 | $2312 | $518 | $1657 | $14 | $2189 |
| &nbsp;&nbsp;&nbsp;Total gains or (losses) (realized/unrealized) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Included in earnings (or changes in net assets) | (23) | (14) |  | (36) | (24) | (13) |  | (37) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Included in other comprehensive income (loss) | 13 | 7 |  | 20 | (1) | 5 |  | 3 |
| &nbsp;&nbsp;&nbsp;Purchases, issuances and settlements | (25) | 124 |  | 99 | (92) | 331 |  | 239 |
| &nbsp;&nbsp;&nbsp;Transfers in/(out) of Level 3 and reclassification of securities in/(out) of investment categories |  |  |  |  |  |  |  |  |
| Ending balance | $402 | $1979 | $14 | $2394 | $402 | $1979 | $14 | $2394 |
| The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date | $(13) | $— | $— | $(13) | $(14) | $— | $— | $(14) |

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(Some amounts may not reconcile due to rounding.)

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | Total Fixed Maturities - Available for Sale | Total Fixed Maturities - Available for Sale | Total Fixed Maturities - Available for Sale | Total Fixed Maturities - Available for Sale | Total Fixed Maturities - Available for Sale | Total Fixed Maturities - Available for Sale | Total Fixed Maturities - Available for Sale | Total Fixed Maturities - Available for Sale |
| | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 |
| (Dollars in millions) | Corporate<br>Securities | Asset Backed<br>Securities | Foreign<br>Corporate | Total | Corporate<br>Securities | Asset Backed<br>Securities | Foreign<br>Corporate | Total |
| Beginning balance of fixed maturities | $589 | $1442 | $14 | $2045 | $672 | $1305 | $16 | $1993 |
| &nbsp;&nbsp;&nbsp;Total gains or (losses) (realized/unrealized) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Included in earnings (or changes in net assets) | (7) |  |  | (6) | (1) |  | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Included in other comprehensive income (loss) | 2 | 4 |  | 7 | 1 | 15 |  | 16 |
| &nbsp;&nbsp;&nbsp;Purchases, issuances and settlements | (36) | 73 |  | 37 | (123) | 199 | (2) | 73 |
| &nbsp;&nbsp;&nbsp;Transfers in/(out) of Level 3 and reclassification of securities in/(out) of investment categories |  |  |  |  |  |  |  |  |
| Ending balance | $549 | $1519 | $14 | $2082 | $549 | $1519 | $14 | $2082 |
| The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date | $(7) | $— | $— | $(7) | $(3) | $— | $— | $(3) |

---

(Some amounts may not reconcile due to rounding.)

There were no transfers of assets in/(out) of Level 3 for the three and nine months ended September 30, 2025.

<u>Financial Instruments Disclosed, But Not Reported, at Fair Value</u>

Certain financial instruments disclosed, but not reported, at fair value are excluded from the fair value hierarchy tables above. Fair values and valuation hierarchy of fixed maturity securities - held to maturity, senior notes and long-term subordinated notes can be found within Notes 3, 7 and 8 of the Notes to these consolidated financial statements, respectively. Short-term investments are stated at cost, which approximates fair value.

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<u>Exempt from Fair Value Disclosure Requirements</u>

Certain financial instruments are exempt from the requirements for fair value disclosure, such as limited partnerships accounted for under the equity method and pension and other postretirement obligations. The Company's investments in COLI policies are recorded at their cash surrender value and are therefore not required to be included in the tables above. See Note 3 of the Notes to these consolidated financial statements for details of investments in COLI policies.

In addition, $242 million and $239 million of investments within other invested assets on the consolidated balance sheets as of September 30, 2025 and December 31, 2024, respectively, are not included within the fair value hierarchy tables, as the assets are measured at NAV as a practical expedient to determine fair value.

**5. RESERVE FOR LOSSES AND LAE**

The following table provides a roll forward of the Company's beginning and ending reserve for losses and LAE and is summarized for the periods indicated:

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| | | |
|:---|:---|:---|
| | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| (Dollars in millions) | 2025 | 2024 |
| Gross reserves beginning of period | $19271 | $15796 |
| &nbsp;&nbsp;&nbsp;Less reinsurance recoverables on unpaid losses | (3391) | (3182) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net reserves beginning of period | 15880 | 12614 |
| Incurred related to: |  |  |
| &nbsp;&nbsp;&nbsp;Current year | 4814 | 4448 |
| &nbsp;&nbsp;&nbsp;Prior years | 367 | (32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total incurred losses and LAE | 5182 | 4417 |
| Paid related to: |  |  |
| &nbsp;&nbsp;&nbsp;Current year | 780 | 735 |
| &nbsp;&nbsp;&nbsp;Prior years | 2787 | 2250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total paid losses and LAE | 3567 | 2985 |
| Foreign exchange/translation adjustment | 126 | (10) |
| Net reserves end of period | 17621 | 14036 |
| &nbsp;&nbsp;&nbsp;Plus reinsurance recoverables on unpaid losses | 3561 | 2831 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross reserves end of period | $21182 | $16867 |

---

(Some amounts may not reconcile due to rounding.)

Current year incurred losses were $4.8 billion and $4.4 billion for the nine months ended September 30, 2025 and 2024, respectively. Gross and net reserves increased for the nine months ended September 30, 2025, reflecting an increase in underlying exposure due to strengthening of casualty reserves, year over year, amounting to approximately $177 million current year attritional losses in 2025 compared to 2024, as well as an increase of $189 million in current year catastrophe losses in 2025.

The net unfavorable development on prior year reserves of $367 million was primarily due to strengthening of casualty reserves and aviation losses associated with the Russia/Ukraine war of $57 million, partially offset by net favorable prior year development of $33 million, driven by the release of reserves from prior underwriting years for the property line of business. The reserve strengthening for prior year loss development was driven by elevated loss experience in excess casualty and liability lines primarily for accident years 2022-2024.

In the second quarter of 2025, the United Kingdom's High Court concluded that the confiscation of certain aircraft was covered under the war provision within certain reinsurance contracts. As a result of the court's decision, the Company increased its net ultimate loss reserve for contracts that were exposed to the war in Ukraine by $57 million ($44 million net of reinstatement premiums).

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**6. SEGMENT REPORTING**

The Company conducts business through two reportable segments: Reinsurance and Insurance. The Reinsurance operation writes worldwide property and casualty reinsurance and specialty lines of business, on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies. Business is written in the U.S., as well as through branches in Canada and Singapore. The Insurance operation writes property and casualty insurance directly and through brokers, including for surplus lines, and general agents within the United States. The two segments are managed independently, but conform with corporate guidelines with respect to pricing, risk management, control of aggregate catastrophe exposures, capital, investments and support operations.

Our two reportable segments each have executive leadership who are responsible for the overall performance of their respective segments and who are directly accountable to our chief operating decision maker ("CODM"), the Chief Executive Officer of Everest Group, Ltd., who is ultimately responsible for reviewing the business to assess performance, make operating decisions and allocate resources. We report the results of our operations consistent with the manner in which our CODM reviews the business.

During the fourth quarter of 2024, the Company revised its classification and presentation of certain run-off business, previously included within the Reinsurance and Insurance reportable segments, as part of a new segment called "Other". The new Other segment 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 asbestos and environmental ("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. Additionally, as part of the segment results presentation, we have separately presented the Company's largest affiliated reinsurance arrangements with Bermuda entities. See Note 13 of the Notes to these consolidated financial statements for a discussion of reinsurance transactions with Bermuda entities that are included in this segment presentation, also discussed below. These segment presentation changes have been reflected retrospectively. The Company continues to have two reportable segments that actively sell products, Reinsurance and Insurance, consistent with how the on-going business is managed.

Affiliated Cession to Bermuda Entities includes the impact of ceded amounts related to the whole account aggregate stop loss agreement between Everest Re and Bermuda Re; Everest Re's whole account quota share agreements with Bermuda Re and Everest International Reinsurance, Ltd. ("Everest International"), which are now in run off; the Loss Portfolio Transfer ("LPT") agreements between Everest Re and Bermuda Re; the life business whole account quota share agreement between Everest International Assurance Ltd. ("Everest Assurance") and Bermuda Re; the quota share agreement between Everest Re (Canadian Branch) and Bermuda Re, which was commuted as of the second quarter 2025; and the new catastrophe excess of loss contract effective January 1, 2025 with Bermuda Re. See Note 13 of the Notes to these consolidated financial statements for additional details.

The Company does not review and evaluate the financial results of its segments based upon balance sheet data. Management generally monitors and evaluates the financial performance of these segments based upon their underwriting results. Underwriting results include earned premium less losses and LAE incurred, commission and brokerage expenses and other underwriting expenses. The Company measures its underwriting results using ratios, in particular, loss, commission and brokerage and other underwriting expense ratios, which, respectively, divide incurred losses, commissions and brokerage and other underwriting expenses by premiums earned. Management has determined that these measures are appropriate and align with how the business is managed. We continue to evaluate our segments as our business evolves and may further refine our segments and financial performance measures.

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The following tables present segment underwriting results for the periods indicated:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2025 |
| (Dollars in millions) | Reinsurance | Insurance | Other | Affiliated Cession to Bermuda Entities | Total |
| Gross written premiums | $1987 | $786 | 22 |  | $2796 |
| Net written premiums | 1734 | 558 | 21 | (61) | 2252 |
| Premiums earned | $1726 | $600 | 23 | (97) | $2252 |
| Incurred losses and LAE | 858 | 827 | 142 | (46) | 1781 |
| Commission and brokerage | 428 | 63 | 6 |  | 497 |
| Other underwriting expenses | 39 | 95 | 2 |  | 137 |
| Underwriting gain (loss) | $400 | $(386) | $(127) | $(51) | $(163) |
| Net investment income |  |  |  |  | 368 |
| Net gains (losses) on investments |  |  |  |  | (37) |
| Corporate expenses |  |  |  |  | (7) |
| Interest, fees and bond issue cost amortization expense |  |  |  |  | (45) |
| Other income (expense) |  |  |  |  | (9) |
| Income (loss) before taxes |  |  |  |  | $108 |

---

(Some amounts may not reconcile due to rounding)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2025 |
| (Dollars in millions) | Reinsurance | Insurance | Other | Affiliated Cession to Bermuda Entities | Total |
| Gross written premiums | $6031 | $2441 | 72 |  | $8543 |
| Net written premiums | 5308 | 1769 | 68 | (355) | 6790 |
| Premiums earned | $5337 | $1815 | 84 | (331) | $6905 |
| Incurred losses and LAE | 3266 | 1738 | 220 | (42) | 5182 |
| Commission and brokerage | 1305 | 198 | 17 |  | 1519 |
| Other underwriting expenses | 135 | 288 | 9 |  | 432 |
| Underwriting gain (loss) | $631 | $(409) | $(162) | $(289) | $(228) |
| Net investment income |  |  |  |  | 1000 |
| Net gains (losses) on investments |  |  |  |  | 56 |
| Corporate expenses |  |  |  |  | (24) |
| Interest, fees and bond issue cost amortization expense |  |  |  |  | (133) |
| Other income (expense) |  |  |  |  | (50) |
| Income (loss) before taxes |  |  |  |  | $621 |

---

(Some amounts may not reconcile due to rounding)

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 |
| (Dollars in millions) | Reinsurance | Insurance | Other | Affiliated Cession to Bermuda Entities | Total |
| Gross written premiums | $2018 | $770 | 42 |  | $2829 |
| Net written premiums | 1796 | 535 | 37 | (118) | 2249 |
| Premiums earned | $1785 | $629 | 44 | (118) | $2340 |
| Incurred losses and LAE | 1163 | 437 | 33 | 3 | 1636 |
| Commission and brokerage | 427 | 64 | 6 | 1 | 498 |
| Other underwriting expenses | 56 | 94 | 6 |  | 157 |
| Underwriting gain (loss) | $139 | $34 | $(1) | $(122) | $49 |
| Net investment income |  |  |  |  | 316 |
| Net gains (losses) on investments |  |  |  |  | 39 |
| Corporate expenses |  |  |  |  | (6) |
| Interest, fees and bond issue cost amortization expense |  |  |  |  | (38) |
| Other income (expense) |  |  |  |  | (13) |
| Income (loss) before taxes |  |  |  |  | $347 |

---

(Some amounts may not reconcile due to rounding)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 |
| (Dollars in millions) | Reinsurance | Insurance | Other | Affiliated Cession to Bermuda Entities | Total |
| Gross written premiums | $5970 | $2587 | 154 |  | $8711 |
| Net written premiums | 5410 | 1805 | 130 | (349) | 6996 |
| Premiums earned | $5087 | $1907 | 135 | (349) | $6779 |
| Incurred losses and LAE | 3031 | 1274 | 108 | 3 | 4417 |
| Commission and brokerage | 1219 | 192 | 21 | 1 | 1433 |
| Other underwriting expenses | 148 | 282 | 19 |  | 449 |
| Underwriting gain (loss) | $688 | $159 | $(14) | $(354) | $480 |
| Net investment income |  |  |  |  | 976 |
| Net gains (losses) on investments |  |  |  |  | 1 |
| Corporate expenses |  |  |  |  | (17) |
| Interest, fees and bond issue cost amortization expense |  |  |  |  | (112) |
| Other income (expense) |  |  |  |  | 12 |
| Income (loss) before taxes |  |  |  |  | $1340 |

---

(Some amounts may not reconcile due to rounding)

Further classifications of revenues by geographic location are impracticable to disclose and, therefore, are not provided.

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**7. SENIOR NOTES**

The table below displays Holdings' outstanding senior notes (the "Senior Notes"). Fair value is based on quoted market prices, but due to limited trading activity, the Senior Notes are considered Level 2 in the fair value hierarchy.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | September 30, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2024 |
| (Dollars in millions) | Date Issued | Date Due | Principal<br>Amounts | Consolidated<br>Balance Sheet<br>Amount | Fair<br>Value | Consolidated<br>Balance Sheet<br>Amount | Fair<br>Value |
| 4.868% Senior notes | 6/5/2014 | 6/1/2044 | $400 | $398 | $365 | $398 | $347 |
| 3.5% Senior notes | 10/7/2020 | 10/15/2050 | 1000 | 982 | 707 | 982 | 681 |
| 3.125% Senior notes | 10/4/2021 | 10/15/2052 | 1000 | 971 | 647 | 971 | 620 |
|  |  |  | $2400 | $2351 | $1719 | $2350 | $1648 |

---

(Some amounts may not reconcile due to rounding.)

Interest expense incurred in connection with the Senior Notes is as follows for the periods indicated:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| (Dollars in millions) | Interest Paid | Payable Dates | 2025 | 2024 | 2025 | 2024 |
| 4.868% Senior notes | Semi-annually | June 1/December 1 | $5 | $5 | $15 | $15 |
| 3.5% Senior notes | Semi-annually | April 15/October 15 | 9 | 9 | 26 | 26 |
| 3.125% Senior notes | Semi-annually | April 15/October 15 | 8 | 8 | 24 | 24 |
|  |  |  | $22 | $22 | $65 | $65 |

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(Some amounts may not reconcile due to rounding.)

**8. LONG-TERM SUBORDINATED NOTES**

The table below displays Holdings' outstanding fixed to floating rate long-term subordinated notes ("Subordinated Notes Issued 2007"). Fair value is based on quoted market prices, but due to limited trading activity, the Subordinated Notes Issued 2007 are considered Level 2 in the fair value hierarchy.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | September 30, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2024 |
| | | Original<br>Principal<br>Amount | Maturity Date | Maturity Date | Consolidated<br>Balance<br>Sheet Amount | Fair<br>Value | Consolidated<br>Balance<br>Sheet Amount | Fair<br>Value |
| (Dollars in millions) | Date Issued | Original<br>Principal<br>Amount | Scheduled | Final | Consolidated<br>Balance<br>Sheet Amount | Fair<br>Value | Consolidated<br>Balance<br>Sheet Amount | Fair<br>Value |
| Subordinated Notes Issued 2007 | 4/26/2007 | $400 | 5/15/2037 | 5/1/2067 | $218 | $211 | $218 | $215 |

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During the fixed rate interest period from May 3, 2007 through May 14, 2017, interest was at the annual rate of 6.6%, payable semi-annually in arrears on November 15 and May 15 of each year, commencing on November 15, 2007. During the floating rate interest period from May 15, 2017 through maturity, interest was initially based on the 3-month London Interbank Offered Rate ("LIBOR") plus 238.5 basis points, reset quarterly, payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, subject to Holdings' right to defer interest on one or more occasions for up to ten consecutive years. Deferred interest will accumulate interest at the applicable rate compounded quarterly for periods from and including May 15, 2017. The reset quarterly interest rate for August 15, 2025 to November 17, 2025 is 6.86%. Following the cessation of LIBOR, for periods from and including August 15, 2023, interest will be based on the 3-month Chicago Mercantile Exchange ("CME") Term Secured Overnight Financing Rate ("SOFR") plus a spread.

Holdings may redeem the Subordinated Notes Issued 2007 on or after May 15, 2017, in whole or in part at 100% of the principal amount plus accrued and unpaid interest; however, redemption on or after the scheduled maturity date and prior to May 1, 2047 is subject to a replacement capital covenant. This covenant is for the benefit of the Senior Note holders and it mandates that Holdings receive proceeds from the sale of another subordinated debt issue, of at least similar size, before it may redeem the Subordinated Notes Issued 2007. The Company's Senior Notes are the Company's long-term indebtedness that rank senior to the Subordinated Notes Issued 2007.

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Interest expense incurred in connection with the long-term Subordinated Notes Issued 2007 is as follows for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| (Dollars in millions) | 2025 | 2024 | 2025 | 2024 |
| Interest expense incurred | $4 | $4 | $12 | $13 |

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**9. FEDERAL HOME LOAN BANK MEMBERSHIP**

Everest Re is a member of the Federal Home Loan Bank of New York ("FHLBNY"), which allows Everest Re to borrow up to 10% of its statutory admitted assets. As of September 30, 2025, Everest Re had admitted assets of approximately $33.0 billion which provides borrowing capacity in excess of $3.3 billion. As of September 30, 2025, Everest Re had $1.0 billion of borrowings outstanding, which begin to expire in 2025. Everest Re incurred interest expense of $12 million and $11 million for the three months ended September 30, 2025 and 2024, respectively. Everest Re incurred interest expense of $37 million and $33 million for the nine months ended September 30, 2025 and 2024, respectively. The FHLBNY membership agreement requires that 4.5% of borrowed funds be used to acquire additional membership stock. Additionally, the FHLBNY membership requires that members must have sufficient qualifying collateral pledged. As of September 30, 2025, Everest Re had $1.3 billion of collateral pledged. See Note 10 of the Notes to these consolidated financial statements.

**10. 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:

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| | | |
|:---|:---|:---|
| (Dollars in millions) | September 30, 2025 | December 31, 2024 |
| Collateral in trust for non-affiliated agreements | $1103 | $1286 |
| Collateral held on behalf of affiliates <sup>(1)</sup> | 747 | 732 |
| Collateral for FHLB borrowings | 1304 | 1294 |
| Securities on deposit with or regulated by government authorities | 1452 | 1406 |
| Funds held by reinsureds | 346 | 336 |
| Total restricted assets | $4951 | $5055 |

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<sup>(1)</sup> 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 September 30, 2025 and December 31, 2024, the Company had restricted cash of $51 million and $170 million, respectively. Total restricted cash includes amounts on deposit in trust accounts for non-affiliated agreements.

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

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agreements are multi-year reinsurance contracts which cover named storm and earthquake events. The table below summarizes the various agreements:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (Dollars in millions) |  |  |  |  |  |
| Class | Description | Effective Date | Expiration Date | Limit | Coverage Basis |
| Series 2021-1 Class A-2 | US, Canada, Puerto Rico – Named Storm and Earthquake Events | 4/8/2021 | 4/20/2026 | 150 | Occurrence |
| Series 2021-1 Class B-2 | US, Canada, Puerto Rico – Named Storm and Earthquake Events | 4/8/2021 | 4/20/2026 | 90 | Aggregate |
| Series 2021-1 Class C-2 | US, Canada, Puerto Rico – Named Storm and Earthquake Events | 4/8/2021 | 4/20/2026 | 90 | Aggregate |
| Series 2024-1 Class A | US, Canada, Puerto Rico – Named Storm and Earthquake Events | 6/27/2024 | 6/30/2028 | 75 | Occurrence |
| Series 2024-1 Class B | US, Canada, Puerto Rico – Named Storm and Earthquake Events | 6/27/2024 | 6/30/2028 | 125 | Occurrence |
| Series 2025-1 Class A-1 | US, Canada, Puerto Rico – Named Storm and Earthquake Events | 6/26/2025 | 7/9/2029 | 105 | Aggregate |
| Series 2025-1 Class A-2 | US, Canada, Puerto Rico – Named Storm and Earthquake Events | 6/26/2025 | 7/8/2030 | 105 | Aggregate |
| Series 2025-1 Class B-1 | US, Canada, Puerto Rico – Named Storm and Earthquake Events | 6/26/2025 | 7/9/2029 | 120 | Aggregate |
| Series 2025-1 Class B-2 | US, Canada, Puerto Rico – Named Storm and Earthquake Events | 6/26/2025 | 7/8/2030 | 120 | Aggregate |
| Series 2025-1 Class C-1 | US, Canada, Puerto Rico – Named Storm and Earthquake Events | 6/26/2025 | 7/9/2029 | 170 | Occurrence |
| Series 2025-1 Class C-2 | US, Canada, Puerto Rico – Named Storm and Earthquake Events | 6/26/2025 | 7/8/2030 | 170 | Occurrence |
| Series 2025-1 Class D-1 | US, Canada, Puerto Rico – Named Storm and Earthquake Events | 6/26/2025 | 7/9/2029 | 105 | Occurrence |
| Series 2025-1 Class D-2 | US, Canada, Puerto Rico – Named Storm and Earthquake Events | 6/26/2025 | 7/8/2030 | 105 | Occurrence |
|  | Total available limit as of September 30, 2025 |  |  | $1530 |  |

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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.

**11. COMMITMENTS AND CONTINGENCIES**

In the ordinary course of business, the Company is involved in lawsuits, arbitrations and other formal and informal dispute resolution procedures, the outcomes of which will determine the Company's rights and obligations under insurance and reinsurance agreements. In some disputes, the Company seeks to enforce its rights under an agreement or to collect funds owing to it. In other matters, the Company is resisting attempts by others to collect funds or enforce alleged rights. These disputes arise from time to time and are ultimately resolved through both informal and formal means, including negotiated resolution, arbitration and litigation. In all such matters, the Company believes that its positions are legally and commercially reasonable. The Company considers the statuses of these proceedings when determining its reserves for unpaid loss and LAE.

Aside from litigation and arbitrations related to these insurance and reinsurance agreements, the Company is not a party to any other material litigation or arbitration.

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**12. OTHER COMPREHENSIVE INCOME (LOSS)**

The following tables present the components of other comprehensive income (loss) in the consolidated statements of operations for the periods indicated:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2025 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2025 |
| (Dollars in millions) | Before Tax | Tax Effect | Net of Tax | Before Tax | Tax Effect | Net of Tax |
| URA(D) of securities - non-credit related | $111 | $(22) | $89 | $416 | $(86) | $330 |
| Reclassification of net realized losses (gains) included in net income (loss) | 47 | (10) | 37 | 51 | (11) | 41 |
| Foreign currency translation adjustments | (15) | 3 | (12) | 60 | (13) | 48 |
| Reclassification of amortization of net gain (loss) included in net income (loss) |  |  |  | (10) | 2 | (8) |
| Total other comprehensive income (loss) | $143 | $(29) | $114 | $518 | $(107) | $410 |

---

(Some amounts may not reconcile due to rounding)

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 |
| (Dollars in millions) | Before Tax | Tax Effect | Net of Tax | Before Tax | Tax Effect | Net of Tax |
| URA(D) of securities - non-credit related | $414 | $(87) | $327 | $293 | $(61) | $231 |
| Reclassification of net realized losses (gains) included in net income (loss) | 10 | (2) | 8 | 26 | (6) | 20 |
| Foreign currency translation adjustments | 51 | (11) | 41 | 18 | (4) | 14 |
| Reclassification of amortization of net gain (loss) included in net income (loss) | (1) |  |  | 31 | (6) | 24 |
| Total other comprehensive income (loss) | $475 | $(100) | $376 | $367 | $(77) | $290 |

---

(Some amounts may not reconcile due to rounding)

The following table presents details of the amounts reclassified from accumulated other comprehensive income (loss) ("AOCI") for the periods indicated:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (Dollars in millions) | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Affected line item within the<br>statements of operations and<br>comprehensive income (loss) |
| AOCI component | 2025 | 2024 | 2025 | 2024 | Affected line item within the<br>statements of operations and<br>comprehensive income (loss) |
| URA(D) of securities | $47 | $10 | $51 | $26 | Other net gains (losses) on investments |
|  | (10) | (2) | (11) | (6) | Income tax expense (benefit) |
|  | $37 | $8 | $41 | $20 | Net income (loss) |
| Benefit plan net gain (loss) | $— | $(1) | $(10) | $31 | Other underwriting expenses |
|  |  |  | 2 | (6) | Income tax expense (benefit) |
|  | $— | $— | $(8) | $24 | Net income (loss) |

---

(Some amounts may not reconcile due to rounding)

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The following table presents the components of AOCI, net of tax, in the consolidated balance sheets for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| (Dollars in millions) | 2025 | 2024 | 2025 | 2024 |
| Beginning balance of URA(D) of securities | $(148) | $(373) | $(393) | $(289) |
| Current period change in URA(D) of securities - non-credit related | 126 | 335 | 370 | 252 |
| Ending balance of URA(D) of securities | (22) | (38) | (22) | (38) |
| Beginning balance of foreign currency translation adjustments | 36 | (7) | (24) | 19 |
| Current period change in foreign currency translation adjustments | (12) | 41 | 48 | 14 |
| Ending balance of foreign currency translation adjustments | 24 | 33 | 24 | 33 |
| Beginning balance of benefit plan net gain (loss) | 8 | 8 | 16 | (16) |
| Current period change in benefit plan net gain (loss) |  |  | (8) | 24 |
| Ending balance of benefit plan net gain (loss) | 8 | 8 | 8 | 8 |
| Ending balance of accumulated other comprehensive income (loss) | $10 | $3 | $10 | $3 |

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(Some amounts may not reconcile due to rounding.)

**13. RELATED-PARTY TRANSACTIONS**

The table below displays long-term note agreements that Group entered into with Holdings for the periods indicated. These transactions are presented as Notes Payable – Affiliated in the Consolidated Balance Sheet of Holdings. The fair value of these long-term notes is considered Level 2 in the fair value hierarchy.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | September 30, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2024 |
| (Dollars in millions) | Date Issued | Date Due | Principal<br>Amounts | Consolidated<br>Balance Sheet<br>Amount | Fair<br>Value | Consolidated<br>Balance Sheet<br>Amount | Fair<br>Value |
| 4.30% Long-term Note | 12/23/2024 | 12/23/2027 | $600 | $600 | $613 | $600 | $596 |

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(Some amounts may not reconcile due to rounding.)

Interest expense recognized in connection with long-term note agreements is as follows for the periods indicated:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| (Dollars in millions) | Interest Received | Receivable Dates | 2025 | 2024 | 2025 | 2024 |
| 4.30% Long-term Note | semi-annually | June 30 and December 31 | 6 |  | 19 |  |

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(Some amounts may not reconcile due to rounding.)

Holdings holds 1,773.214 preferred shares of Preferred Holdings with a $1.0 million par value and 1.75% annual dividend rate. Holdings received these shares in December 2015 in exchange for previously held 9,719,971 common shares of Group. After the exchange, Holdings no longer holds any shares or has any ownership interest in Group. Holdings has reported the preferred shares in Preferred Holdings, as other invested assets, fair value, in the consolidated balance sheets with changes in fair value re-measurement recorded in net gains (losses) on investments in the consolidated statements of operations and comprehensive income (loss). The following table presents the dividends received on the preferred shares of Preferred Holdings that are reported as net investment income in the consolidated statements of operations and comprehensive income (loss) for the period indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| (Dollars in millions) | 2025 | 2024 | 2025 | 2024 |
| Dividends received on preferred stock of affiliate | $8 | $8 | $23 | $23 |

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<u>Affiliated Companies</u>

Everest Global Services, Inc. ("Global Services"), an affiliate of Holdings, provides centralized management and home office services, through a management agreement, to Holdings and other affiliated companies within Holdings' consolidated structure. Services provided by Global Services include executive managerial services, legal services, actuarial services, accounting services, information technology services and others.

The following table presents the expenses incurred by Holdings from services provided by Global Services for the periods indicated.

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| (Dollars in millions) | 2025 | 2024 | 2025 | 2024 |
| Expenses incurred | 65 | 61 | 174 | 182 |

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<u>Affiliated Assumed & Ceded Reinsurance</u>

The Company has engaged in reinsurance transactions with affiliated companies primarily driven by enterprise risk and capital management considerations under which business is ceded at market rates and terms.

The table below summarizes total premiums written and earned and incurred losses and LAE ceded to and assumed from affiliates for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| (Dollars in millions) | 2025 | 2024 | 2025 | 2024 |
| Written premiums: |  |  |  |  |
| Assumed | 17 | 15 | 58 | 42 |
| Ceded | (61) | (118) | (355) | (349) |
| Premiums earned: |  |  |  |  |
| Assumed | 24 | 13 | 59 | 51 |
| Ceded | (97) | (118) | (331) | (349) |
| Incurred losses and LAE: |  |  |  |  |
| Assumed | 3 | 7 | 3 | 4 |
| Ceded | (46) | 3 | (42) | 3 |

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*Transactions with Bermuda Entities*

Effective January 1, 2018, Everest Re entered into a twelve-month whole account aggregate stop loss reinsurance contract (the "stop loss agreement") with Bermuda Re, that is renewed annually. The stop loss agreement provides coverage for ultimate net losses on applicable net earned premiums above a retention level, subject to certain other coverage limits and conditions. The stop loss agreements between Everest Re and Bermuda Re that were effective for 2018 and 2019 were both commuted during the third quarter of 2023, and the agreement for the 2020 effective year was commuted during the third quarter of 2025. The stop loss agreement was most recently renewed effective January 1, 2025.

Everest Re had whole account quota share reinsurance agreements in place with Bermuda Re from 2002 through the end of 2017. Quota share percentages ranged from 20% to 60% depending on the year. As of December 31, 2017, the quota share reinsurance agreements between Everest Re and Bermuda Re were not renewed and the existing quota shares were put into run-off. As of September 30, 2025 and December 31, 2024, Everest Re had reinsurance recoverables on unpaid losses of $479 million and $680 million, respectively, in connection with these agreements.

Everest Re had whole account quota share reinsurance agreements in place with Everest International from 2004 through the end of 2009. Quota share percentages ranged from 2% to 8% depending on the year. As of December 31, 2009, the quota share reinsurance agreements between Everest Re and Everest International were not renewed and the existing quota shares were put into run-off. As of September 30, 2025 and as of December 31, 2024, Everest Re had reinsurance recoverables on unpaid losses of $6 million and $8 million, respectively, in connection with these agreements.

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Everest Re (Canadian Branch) had quota share reinsurance agreements in place with Bermuda Re from 2003 through the end of 2017. Quota share percentages ranged from 60% to 75% depending on the year. During the second quarter of 2025, the quota share reinsurance agreements between Everest Re (Canadian Branch) and Bermuda Re were commuted effective June 30, 2025. As of December 31, 2024, Everest Re (Canadian Branch) had reinsurance recoverables on unpaid losses of $37 million in connection with these agreements.

Effective October 1, 2008, Everest Re entered into an LPT agreement with Bermuda Re that covers subject loss reserves related to casualty business for accident years 2002 to 2007. As a result of the LPT agreement, the Company transferred $747 million of loss reserves to Bermuda Re. As of September 30, 2025 and December 31, 2024, the Company had reinsurance recoverables of $27 million and $27 million, respectively, recorded on its balance sheet due from Bermuda Re.

Effective December 31, 2017, Everest Re entered into an additional LPT agreement with Bermuda Re. The LPT agreement covers subject loss reserves of $2.3 billion for accident years 2017 and prior subject to retention. As a result of the LPT agreement, the Company transferred $1.0 billion of cash and fixed maturity securities and transferred $970 million of loss reserves to Bermuda Re. As part of the LPT agreement, Bermuda Re will provide an additional $500 million of adverse development coverage on the subject loss reserves. As of September 30, 2025 and December 31, 2024, the Company had reinsurance recoverables of $174 million and $381 million, respectively, recorded on its balance sheet due from Bermuda Re.

Everest Assurance entered into a continuous, 100% whole account quota share reinsurance agreement with Bermuda Re effective January 1, 2016. This agreement covers life business and is renewable until terminated.

Everest Re entered into a catastrophe excess of loss contract with Bermuda Re effective January 1, 2025 through December 31, 2025. The contract provides Everest Re up to $600 million of reinsurance coverage in excess of $1.5 billion for hurricane perils and in excess of $1.1 billion for earthquake events. Everest Re will pay Bermuda Re $97 million for this coverage. This agreement was amended effective July 1, 2025 to provide Everest Re up to $500 million of reinsurance coverage in excess of $1.5 billion for hurricane perils and in excess of $1.1 billion for earthquake events.

*Transactions with Other Affiliates*

Everest Re entered into a catastrophe excess of loss reinsurance contract with Everest Insurance (Ireland), dac ("Ireland Insurance") effective January 1, 2021 through December 31, 2021. The contract provides Ireland Insurance with up to €750 million of reinsurance coverage for each catastrophe occurrence above €15 million. Ireland Insurance will pay Everest Re €26 million for this coverage annually. This contract was most recently renewed effective January 1, 2025.

Everest Re entered into a catastrophe excess of loss reinsurance contract with Everest Reinsurance Company (Ireland), dac ("Ireland Re"), effective February 1, 2021 through January 31, 2022. The contract provides Ireland Re with up to €125 million of reinsurance coverage for each catastrophe occurrence above €18 million. Ireland Re will pay Everest Re €9 million for this coverage annually. This agreement was most recently renewed effective January 31, 2025.

Everest Re entered into a catastrophe excess of loss reinsurance contract with Ireland Re, effective March 31, 2023 through January 31, 2024. The contract provides Ireland Re with up to €61 million of reinsurance coverage for each catastrophe occurrence above €139 million. Ireland Re will pay Everest Re €2 million for this coverage. This agreement was not renewed for 2025.

Everest Re entered into a catastrophe excess of loss reinsurance contract with Lloyd's Syndicate 2786, effective June 1, 2022 through March 31, 2023. The contract provided the Lloyd's Syndicate 2786 with up to $40 million of reinsurance coverage for each catastrophe occurrence above $8 million. The Lloyd's Syndicate 2786 will pay Everest Re $4 million for this coverage annually. This contract was most recently renewed effective April 1, 2025.

Everest Re (Canadian Branch) entered into an excess of loss reinsurance agreement with Everest Insurance Company of Canada ("Everest Canada"), effective January 1, 2024 through December 31, 2024. This contract provides Everest Canada with up to C$150 million or reinsurance coverage for each catastrophe occurrence above C$25 million. Everest Canada will pay Everest Re (Canadian Branch) C$5 million for this coverage annually. This agreement was most recently renewed January 1, 2025.

Everest Re entered into a whole account quota share reinsurance agreement with Everest Compañía de Seguros Generales Colombia S.A. ("Everest Colombia"), effective July 1, 2025 through June 30, 2026. This agreement covers property and casualty business. Quota share percentages vary based on the line of business for the premium written.

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Everest Re entered into a 99% whole account quota share reinsurance agreement with Compañía General de Seguros Everest Mexico ("Everest Mexico"), effective June 7, 2024 through June 30, 2025. This agreement covers property and casualty business. Effective January 1, 2025, the quota share percentage was amended to 99.7% for real estate fund business and 99% for all remaining lines of property and casualty business. This agreement was most recently renewed July 1, 2025.

Everest Re entered into a catastrophe excess of loss reinsurance agreement with Everest Compañía de Seguros Generales Chile S.A. ("Everest Chile"), effective July 1, 2022 through June 30, 2023. The contract provides Everest Chile with up to $180 million of reinsurance coverage for each catastrophe occurrence above $7 million. Everest Chile will pay Everest Re $7 million for this coverage annually. This agreement was most recently renewed July 1, 2025.

Everest Re entered into a catastrophe excess of loss reinsurance contract with Bermuda Re (UK Branch), effective January 1, 2021 through December 31, 2021. The contract provides Bermuda Re (UK Branch) with up to £130 million of reinsurance coverage for each catastrophe occurrence above £27 million. Bermuda Re (UK Branch) will pay Everest Re £7 million for this coverage annually. This contract was most recently renewed effective January 1, 2025.

Everest Re entered into a per risk and per occurrence and excess of loss reinsurance contract with the Australia Branch of Everest International ("Everest International - Australia Branch"), effective July 1, 2025 through June 30, 2026. The contract provides Everest International - Australia Branch with up to A$65 million of reinsurance coverage for each risk or occurrence above A$8 million. Everest International - Australia Branch will pay Everest Re A$11 million for the coverage annually.

Everest Re entered into a catastrophe excess of loss reinsurance contract with the Everest International - Australia Branch, effective July 1, 2025 through June 30, 2026. The contract provides Everest International - Australia Branch, with up to A$167 million of reinsurance coverage for each catastrophe occurrence above A$73 million. Everest International - Australia Branch will pay Everest Re A$4 million for this coverage annually.

Everest Re entered into a catastrophe excess of loss reinsurance contract with the Everest Assurance - Singapore Branch, effective July 1, 2025 through December 31, 2025. The contract provides Everest Assurance - Singapore Branch, with up to 80S$ million of reinsurance coverage for each catastrophe occurrence above 20S$ million. Everest Assurance- Singapore Branch will pay Everest Re 2S$ million for this coverage biannually.

Everest Re entered into a per event excess of loss reinsurance contract with Lloyd's Syndicate 2786, effective July 1, 2025 through June 30, 2026. The contract provides Lloyd's Syndicate 2786, with up to $8 million of reinsurance coverage for each catastrophe occurrence above $3 million. Lloyd's Syndicate 2786 will pay Everest Re $0.4 million for this coverage annually.

Everest Re entered into a 65% whole account quota share reinsurance agreement with Everest Chile, effective July 1, 2022 through June 30, 2023. The contract was not renewed and is in run-off as of December 31, 2024.

In 2013, Group established Mt. Logan Re, Ltd. ("Mt. Logan Re"), which is a Class 3 insurer based in Bermuda. Mt. Logan Re then established separate segregated accounts for its business activity, which invest in a diversified set of catastrophe exposures.

The following table summarizes the premiums and losses that are ceded by the Company to Mt. Logan Re segregated accounts:

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| | | | | |
|:---|:---|:---|:---|:---|
| <u>(Dollars in millions)</u> | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| <u>Mt. Logan Re Segregated Accounts</u> | 2025 | 2024 | 2025 | 2024 |
| Ceded written premiums | $92 | $106 | $301 | $242 |
| Ceded earned premiums | 97 | 67 | 279 | 214 |
| Ceded losses and LAE | 8 | 45 | 117 | 75 |

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**14. INCOME TAXES**

The Company is domiciled in the United States and has subsidiaries domiciled within the United States with significant branches in Canada and Singapore. The Company's non-U.S. branches are subject to income taxation at varying rates in their respective domiciles.

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The Company generally applies the estimated annual effective tax rate ("AETR") approach for calculating its tax provision for interim periods as prescribed by ASC 740-270, Interim Reporting. Under the estimated AETR approach, the estimated AETR is applied to the interim year-to-date pre-tax income/(loss) to determine the income tax expense or benefit for the year-to-date period. The tax expense or benefit for the quarter represents the difference between the year-to-date tax expense or benefit for the current year-to-date period less such amount for the immediately preceding year-to-date period. Management considers the impact of all known events in its estimation of the Company's annual pre-tax income/(loss) and AETR.

On July 4, 2025, The One Big Beautiful Bill was signed into law. The One Big Beautiful Bill did not have a material impact on our results of operations, financial condition, or cash flows upon enactment in the third quarter of 2025, and we do not expect it to have a material impact in the future; however, we will continue to evaluate the impact of The One Big Beautiful Bill.

**15. SUBSEQUENT EVENTS**

The Company has evaluated known recognized and non-recognized subsequent events. No material subsequent events or transactions have occurred that require recognition or disclosure in the financial statements other than the non-recognized events described below.

*Adverse Development Cover Reinsurance Agreements* 

On October 26, 2025, Everest Re and Bermuda Re (the "Ceding Companies") entered into adverse development cover reinsurance agreements with State National Insurance Company, Inc. and MS Transverse Insurance Company. The adverse development cover reinsurance agreements are supported on a retrocessional basis by Longtail Re, an affiliate of Stone Ridge Capital. The adverse development cover reinsurance agreements are effective October 1, 2025 and cover risks arising out of the Ceding Companies' North American Insurance and Other Segment liabilities and relating to premium earned during 2024 and prior years (the "Subject Business"). The reinsurance agreements exclude certain liabilities, including among others those related to the Ceding Companies' Asbestos and Environmental reserves included in the Other Segment. The aggregate of the statutory reserves held for the Subject Business, pursuant to the Reinsurance Agreements, is $5.4 billion, as of September 30, 2025.

The adverse development cover is composed of two layers in excess of the $5.4 billion of North America Insurance and Other segment liability subject reserves. The first layer is $700 million, upon which the Ceding Companies will transfer $1.3 billion of in-the-money reserves in consideration upon closing of the transaction. The second layer is $500 million, upon which the Ceding Companies will pay approximately $122 million of consideration upon closing of the transaction, which will be reported as an incurred loss during the fourth quarter of 2025. The Ceding Companies will have a co-participation of $100 million in each layer.

*Sale of Certain Retail Commercial Insurance Renewal Rights*

On October 26, 2025, Group entered into an agreement with American International Group, Inc. ("AIG") to sell the renewal rights for certain lines of commercial property and casualty insurance business written in the U.S., U.K. and Asia Pacific, for an aggregate purchase price of $252 million (the "Master Transaction Agreement"). In addition, pursuant to the Master Transaction Agreement, AIG has agreed to pay Group $30 million for originating and structuring the transaction and as reimbursement for certain expenses. The closing of the transaction occurred on October 26, 2025. Pursuant to the Master Transaction Agreement, if the gross written premium paid and payable to AIG with respect to aggregate renewed premiums are less than 80% of the aggregate premiums for the period beginning January 1, 2025 to and including December 31, 2025, including premiums on renewed policies between November 1, 2025 and December 31, 2025, Group will reimburse a portion of the aggregate purchase price, not to exceed $70 million, to AIG depending on the relative percentage of such 2025 premiums.

In addition, on October 26, 2025, Group entered into an agreement with AIG to sell the renewal rights for certain lines of commercial property and casualty insurance business written in certain countries in the European Union, for an aggregate purchase price of $49 million (the "EU Master Transaction Agreement," and together with the Master Transaction Agreement, the "Master Transaction Agreements"). Completion of the transaction will be subject to certain regulatory approvals and other customary closing conditions.

The purchase price under the Master Transaction Agreements is subject to adjustment such that the final purchase price will be equal to 15% of the actual premiums written for the period beginning January 1, 2025 to and including December 31, 2025, including premiums on renewed policies between November 1, 2025 and December 31, 2025. Under the

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Master Transaction Agreements, AIG has also agreed to pay Group a total of $10 million per month for nine months for specified transition services.

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**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

The following is a discussion of our results of operations, financial condition and liquidity and capital resources for the three and nine months ended September 30, 2025. This discussion should be read in conjunction with the consolidated financial statements and related notes, under Part I - Item 1 of this Form 10-Q, as well as the audited consolidated financial statements and notes thereto for the year ended December 31, 2024, included in the Company's most recent Form 10-K filing.

All comparisons in this discussion are to the corresponding prior year unless otherwise indicated.

**Recent Developments.** 

*Adverse Development Cover Reinsurance Agreements* 

On October 26, 2025, Everest Reinsurance Company ("Everest Re") and Everest Reinsurance (Bermuda), Ltd. ("Bermuda Re") (the "Ceding Companies") entered into adverse development cover reinsurance agreements with State National Insurance Company, Inc. and MS Transverse Insurance Company. The adverse development cover reinsurance agreements are supported on a retrocessional basis by Longtail Re, an affiliate of Stone Ridge Capital. The adverse development cover reinsurance agreements are effective October 1, 2025 and cover risks arising out of the Ceding Companies' North American Insurance and Other Segment liabilities and relating to premium earned during 2024 and prior years (the "Subject Business"). The reinsurance agreements exclude certain liabilities, including among others those related to the Ceding Companies' Asbestos and Environmental reserves included in the Other Segment. The aggregate of the statutory reserves held for the Subject Business, pursuant to the Reinsurance Agreements, is $5.4 billion, as of September 30, 2025.

The adverse development cover is composed of two layers in excess of the $5.4 billion of North America Insurance and Other segment liability subject reserves. The first layer is $700 million, upon which the Ceding Companies will transfer $1.3 billion of in-the-money reserves in consideration upon closing of the transaction. The second layer is $500 million, upon which the Ceding Companies will pay approximately $122 million of consideration upon closing of the transaction, which will be reported as an incurred loss during the fourth quarter of 2025. The Ceding Companies will have a co-participation of $100 million in each layer.

*Sale of Certain Retail Commercial Insurance Renewal Rights*

On October 26, 2025, Group entered into an agreement with American International Group, Inc. ("AIG") to sell the renewal rights for certain lines of commercial property and casualty insurance business written in the U.S., U.K. and Asia Pacific, for an aggregate purchase price of $252 million (the "Master Transaction Agreement"). In addition, pursuant to the Master Transaction Agreement, AIG has agreed to pay Group $30 million for originating and structuring the transaction and as reimbursement for certain expenses. The closing of the transaction, occurred on October 26, 2025. Pursuant to the Master Transaction Agreement, if the gross written premium paid and payable to AIG with respect to aggregate renewed premiums are less than 80% of the aggregate premiums for the period beginning January 1, 2025 to and including December 31, 2025, including premiums on renewed policies between November 1, 2025 and December 31, 2025, Group will reimburse a portion of the aggregate purchase price, not to exceed $70 million, to AIG depending on the relative percentage of such 2025 premiums.

In addition, on October 26, 2025, Group entered into an agreement with AIG to sell the renewal rights for certain lines of commercial property and casualty insurance business written in certain countries in the European Union, for an aggregate purchase price of $49 million (the "EU Master Transaction Agreement," and together with the Master Transaction Agreement, the "Master Transaction Agreements"). Completion of the transaction will be subject to certain regulatory approvals and other customary closing conditions.

The purchase price under the Master Transaction Agreements is subject to adjustment such that the final purchase price will be equal to 15% of the actual premiums written for the period beginning January 1, 2025 to and including December 31, 2025, including premiums on renewed policies between November 1, 2025 and December 31, 2025. Under the Master Transaction Agreements, AIG has also agreed to pay Group a total of $10 million per month for nine months for specified transition services.

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**Financial Summary.**

We monitor and evaluate our overall performance based upon financial results. The following table displays a summary of the consolidated net income (loss), ratios and stockholder's equity for the periods indicated:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Percentage<br>Increase/<br>(Decrease) | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Percentage<br>Increase/<br>(Decrease) |
| (Dollars in millions) | 2025 | 2024 | Percentage<br>Increase/<br>(Decrease) | 2025 | 2024 | Percentage<br>Increase/<br>(Decrease) |
| Gross written premiums | $2796 | $2829 | (1.2)% | $8543 | $8711 | (1.9)% |
| Net written premiums | 2252 | 2249 | 0.1% | 6790 | 6996 | (2.9)% |
| REVENUES: |  |  |  |  |  |  |
| Premiums earned | $2252 | $2340 | (3.8)% | $6905 | $6779 | 1.8% |
| Net investment income | 368 | 316 | 16.3% | 1000 | 976 | 2.5% |
| Net gains (losses) on investments | (37) | 39 | NM | 56 | 1 | NM |
| Other income (expense) | (9) | (13) | (36.0)% | (50) | 12 | NM |
| Total revenues | 2574 | 2681 | (4.0)% | 7911 | 7768 | 1.8% |
| CLAIMS AND EXPENSES: |  |  |  |  |  |  |
| Incurred losses and loss adjustment expenses | 1781 | 1636 | 8.9% | 5182 | 4417 | 17.3% |
| Commission, brokerage, taxes and fees | 497 | 498 | (0.2)% | 1519 | 1433 | 6.0% |
| Other underwriting expenses | 137 | 157 | (13.0)% | 432 | 449 | (3.8)% |
| Corporate expenses | 7 | 6 | 10.5% | 24 | 17 | 43.8% |
| Interest, fees and bond issue cost amortization expense | 45 | 38 | 18.7% | 133 | 112 | 18.5% |
| Total claims and expenses | 2466 | 2334 | 5.6% | 7290 | 6428 | 13.4% |
| INCOME (LOSS) BEFORE TAXES | 108 | 347 | (68.8)% | 621 | 1340 | (53.6)% |
| Income tax expense (benefit) | (8) | 67 | NM | 81 | 266 | (69.6)% |
| NET INCOME (LOSS) | $117 | $279 | (58.3)% | $541 | $1075 | (49.7)% |
| RATIOS: |  |  | Point<br>Change |  |  | Point<br>Change |
| Loss ratio | 79.1% | 69.9% | 9.2 | 75.0% | 65.1% | 9.9 |
| Commission and brokerage ratio | 22.1% | 21.3% | 0.8 | 22.0% | 21.1% | 0.9 |
| Other underwriting expense ratio | 6.1% | 6.7% | (0.6) | 6.3% | 6.6% | (0.4) |
| Combined ratio | 107.2% | 97.9% | 9.3 | 103.3% | 92.9% | 10.4 |

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| | | | |
|:---|:---|:---|:---|
| | At<br>September 30, | At<br>December 31, | Percentage<br>Increase/<br>(Decrease) |
| (Dollars in millions) | 2025 | 2024 | Percentage<br>Increase/<br>(Decrease) |
| Balance sheet data: |  |  |  |
| Total investments and cash | $29163 | $26650 | 9.4% |
| Total assets | 39366 | 36209 | 8.7% |
| Reserve for losses and loss adjustment expenses | 21182 | 19271 | 9.9% |
| Total debt | 3588 | 3587 | —% |
| Total liabilities | 31119 | 28913 | 7.6% |
| Stockholder's equity | 8247 | 7296 | 13.0% |

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(NM, not meaningful)

(Some amounts may not reconcile due to rounding)

**Revenues.**

<u>Premiums.</u> Gross written premiums decreased by 1.2%, remaining relatively constant at $2.8 billion for the three months ended September 30, 2025, compared to $2.8 billion for the three months ended September 30, 2024. The decrease reflects a $31 million, or 1.5%, decrease in our reinsurance business and a $20 million decrease in business within the Other segment, partially offset by a $17 million, or 2.2%, increase in our insurance business. The decrease in reinsurance premiums was primarily driven by casualty pro rata and casualty excess of loss, partially offset by an increase in property lines. Gross written premiums within Other decreased by $20 million as this segment generally represents lines of business that have been discontinued. The increase in insurance premiums was primarily due to an increase in accident

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and health business, professional liability business and other specialty business, partially offset by portfolio actions taken on specialty casualty lines of business.

Gross written premiums decreased by 1.9% to $8.5 billion for the nine months ended September 30, 2025, compared to $8.7 billion for the nine months ended September 30, 2024. The decrease reflects a $146 million, or 5.7%, decrease in our insurance business and an $82 million decrease in business within the Other segment, partially offset by a $61 million, or 1.0%, increase in our reinsurance business. The decrease in insurance premiums was primarily due to portfolio actions taken on specialty casualty lines of business, partially offset by an increase in accident and health business and property/short tail business. Gross written premiums within Other has decreased by $82 million as this segment generally represents lines of business that have been discontinued. The increase in reinsurance premiums was primarily due to property catastrophe excess of loss and property pro rata lines of business, partially offset by actions taken on our casualty business.

Net written premiums increased by 0.1% to $2.3 billion for the three months ended September 30, 2025, compared to $2.2 billion for the three months ended September 30, 2024, primarily driven by overall mix of business. Net written premiums decreased by 2.9% to $6.8 billion for the nine months ended September 30, 2025, compared to $7.0 billion for the nine months ended September 30, 2024. The larger percentage decrease in net written premiums compared to the percentage decrease in gross written premiums was mainly due to higher retention and overall mix of business.

Premiums earned decreased by 3.8%, remaining relatively constant at $2.3 billion for the three months ended September 30, 2025, compared to $2.3 billion for the three months ended September 30, 2024. Premiums earned increased by 1.8% to $6.9 billion for the nine months ended September 30, 2025, compared to $6.8 billion for the nine months ended September 30, 2024. The change in premiums earned relative to net written premiums was primarily the result of timing as the higher base premium written in 2024 is being earned through the 2025 period; premiums are earned ratably over the coverage period whereas written premiums are generally recorded at the initiation of the coverage period.

<u>Other Income (Expense).</u> We recorded other expense of $9 million and other expense of $13 million for the three months ended September 30, 2025 and 2024, respectively. We recorded other expense of $50 million and other income of $12 million for the nine months ended September 30, 2025 and 2024, respectively. We recognized foreign currency exchange expense of $10 million for the three months ended September 30, 2025 and foreign currency exchange expense of $14 million for the three months ended September 30, 2024. We recognized foreign currency exchange expense of $80 million for the nine months ended September 30, 2025 and foreign currency exchange income of $4 million for the nine months ended September 30, 2024. The nine month year-to-date changes in foreign currency exchange rates were primarily the result of fluctuations in the Brazilian Real, Colombian Peso, Euro and Israeli New Shekel. The other expense incurred for the nine months ended September 30, 2025 is partially offset by a $26.7 million pension plan settlement gain recognized in the second quarter of 2025 driven by the extinguishment of the Everest Re retirement pension plan obligation liability.

<u>Net Investment Income.</u> Refer to the "Consolidated Investments Results" section below.

<u>Net Gains (Losses) on Investments.</u> Refer to the "Consolidated Investments Results" section below.

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**Claims and Expenses.**

<u>Incurred Losses and Loss Adjustment Expenses ("LAE").</u> The following tables present our incurred losses and loss LAE for the periods indicated:

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, |
| (Dollars in millions) | Current<br>Year | Ratio %/ <br>Pt Change | Ratio %/ <br>Pt Change | Prior<br>Years | Ratio %/ <br>Pt Change | Ratio %/ <br>Pt Change | Total<br>Incurred | Ratio %/ <br>Pt Change | Ratio %/ <br>Pt Change |
| <u>2025</u> |  |  |  |  |  |  |  |  |  |
| Attritional | $1389 | 61.8 | % | $378 | 16.7 | % | $1767 | 78.5 | % |
| Catastrophes | 50 | 2.2 | % | (36) | (1.6) | % | 14 | 0.6 | % |
| Total | $1439 | 64.0 | % | $342 | 15.1 | % | $1781 | 79.1 | % |
| <u>2024</u> |  |  |  |  |  |  |  |  |  |
| Attritional | $1401 | 59.9 | % | $— |  | % | $1401 | 59.9 | % |
| Catastrophes | 246 | 10.5 | % | (11) | (0.5) | % | 235 | 10.0 | % |
| Total | $1647 | 70.4 | % | $(11) | (0.5) | % | $1636 | 69.9 | % |
| <u>Variance 2025/2024</u> |  |  |  |  |  |  |  |  |  |
| Attritional | $(12) | 1.9 | pts | $378 | 16.7 | pts | $366 | 18.6 | &nbsp;&nbsp;&nbsp;&nbsp;pts |
| Catastrophes | (196) | (8.3) | pts | (25) | (1.1) | pts | (220) | (9.4) | &nbsp;&nbsp;&nbsp;&nbsp;pts |
| Total | $(208) | (6.4) | pts | $354 | 15.6 | pts | $146 | 9.2 | &nbsp;&nbsp;&nbsp;&nbsp;pts |

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, |
| (Dollars in millions) | Current<br>Year | Ratio %/ Pt Change | Ratio %/ Pt Change | Prior<br>Years | Ratio %/ Pt Change | Ratio %/ Pt Change | Total<br>Incurred | Ratio %/ Pt Change | Ratio %/ Pt Change |
| <u>2025</u> |  |  |  |  |  |  |  |  |  |
| Attritional | $4270 | 61.9 | % | $401 | 5.8 | % | $4671 | 67.6 | % |
| Catastrophes | 545 | 7.9 | % | (34) | (0.5) | % | 511 | 7.4 | % |
| Total | $4814 | 69.8 | % | $367 | 5.3 | % | $5182 | 75.0 | % |
| <u>2024</u> |  |  |  |  |  |  |  |  |  |
| Attritional | $4093 | 59.9 | % | $6 | 0.1 | % | $4099 | 60.0 | % |
| Catastrophes | 355 | 5.7 | % | (37) | (0.5) | % | 318 | 5.2 | % |
| Total | $4448 | 65.6 | % | $(32) | -0.5 | % | $4417 | 65.1 | % |
| <u>Variance 2025/2024</u> |  |  |  |  |  |  |  |  |  |
| Attritional | $177 | 2.0 | pts | $395 | 5.7 | pts | $572 | 7.7 | pts |
| Catastrophes | 189 | 2.2 | pts | 3 | 0.1 | pts | 193 | 2.2 | pts |
| Total | $366 | 4.1 | pts | $399 | 5.8 | pts | $765 | 9.9 | pts |

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(Some amounts may not reconcile due to rounding.)

Incurred losses and LAE increased by 8.9% to $1.8 billion for the three months ended September 30, 2025, compared to $1.6 billion for the three months ended September 30, 2024, primarily due to an increase in unfavorable development on prior year attritional losses of $378 million, partially offset by a decrease of $12 million in current year attritional losses, a decrease of $196 million in current year catastrophe losses and an increase in favorable development on prior year catastrophe losses of $25 million.

The increase in unfavorable development on prior year attritional losses of $378 million was primarily a result of strengthening of casualty reserves. The reserve strengthening for prior year loss development was driven by elevated loss experience in excess casualty and liability lines primarily for accident years 2022-2024. The decrease in current year attritional losses was mainly due to the impact of the decrease in premiums earned.

The current year catastrophe losses of $50 million for the three months ended September 30, 2025 related primarily to the 2025 Typhoon Ragasa ($20 million), the 2025 U.S. September Floods ($20 million) and the 2025 Philippines earthquake ($10 million). The current year catastrophe losses of $246 million for the three months ended September 30, 2024 related primarily to Hurricane Helene ($73 million), Hurricane Beryl ($66 million), Hurricane Debby ($60 million) and the 2024 third quarter Calgary Alberta storms ($35 million). For the three months ended September 30, 2025, the

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favorable development on prior year catastrophe losses was mainly due to reserves released related to the 2022 Hurricane Ian event.

Incurred losses and LAE increased by 17.3% to $5.2 billion for the nine months ended September 30, 2025, compared to $4.4 billion for the nine months ended September 30, 2024, primarily due to an increase in unfavorable development on prior year attritional losses of $395 million, an increase of $177 million in current year attritional losses, an increase of $189 million in current year catastrophe losses and a decrease in favorable development on prior year catastrophe losses of $3 million.

The increase in current year attritional losses and the unfavorable development on prior year attritional losses were both primarily related to the strengthening of casualty reserves. Additionally, the unfavorable development on prior year attritional losses was impacted by $57 million of aviation losses associated with the Russia/Ukraine war, partially offset by net favorable prior year development of $34 million due to reserve releases for property business.

The current year catastrophe losses of $545 million for the nine months ended September 30, 2025 related primarily to the 2025 Southern California wildfires ($461 million), the first quarter 2025 Myanmar earthquake ($20 million), the 2025 Typhoon Ragasa ($20 million), the 2025 U.S. September floods ($20 million), the 2025 U.S. Midwest convective storms ($14 million) and the 2025 Philippines earthquake ($10 million). The current year catastrophe losses of $355 million for the nine months ended September 30, 2024 related primarily to Hurricane Helene ($73 million), Hurricane Beryl ($66 million), Hurricane Debby ($60 million), the 2024 Brazil Floods ($35 million), the third quarter 2024 Calgary Alberta storms ($35 million), the 2024 Taiwan earthquake ($23 million), the 2024 Baltimore bridge collapse ($23 million) and the 2024 Dubai floods ($20 million). For the nine months ended September 30, 2025, the favorable development on prior year catastrophe losses was mainly due to reserves released related to the 2022 Hurricane Ian event.

<u>Commission, Brokerage, Taxes and Fees.</u> Commission, brokerage, taxes and fees decreased to $497 million for the three months ended September 30, 2025, compared to $498 million for the three months ended September 30, 2024. Commission, brokerage, taxes and fees increased to $1.5 billion for the nine months ended September 30, 2025, compared to $1.4 billion for the nine months ended September 30, 2024. While quarter to date commission, brokerage, taxes and fees remained relatively consistent, the increase in year-to-date commission, brokerage, taxes and fees was mainly due to the change in overall mix of business and the increase in premiums earned.

<u>Other Underwriting Expenses.</u> Other underwriting expenses decreased to $137 million for the three months ended September 30, 2025, compared to $157 million for the three months ended September 30, 2024, consistent with the decrease in gross written premiums. Other underwriting expenses decreased to $432 million for the nine months ended September 30, 2025, compared to $449 million for the nine months ended September 30, 2024, primarily due to changes in the mix of business.

<u>Corporate Expenses.</u> Corporate expenses, which are general operating expenses that are not allocated to segments, increased to $7 million from $6 million for the three months ended September 30, 2025 and 2024, respectively, and increased to $24 million from $17 million for the nine months ended September 30, 2025 and 2024, respectively. The increase in Corporate expenses for the three and nine month periods ended September 30, 2025 is primarily due to a nonrecurring adjustment due to the curtailment of the employee benefit plan in 2024, as well as an increase in professional services expenses related to the continued build out of our infrastructure.

<u>Interest, Fees and Bond Issue Cost Amortization Expense.</u> Interest, fees and other bond amortization expense increased to $45 million from $38 million for the three months ended September 30, 2025 and 2024, respectively. Interest, fees and other bond amortization expense increased to $133 million from $112 million for the nine months ended September 30, 2025 and 2024, respectively. The increases were mainly due to higher interest costs on the Federal Home Loan Bank of New York ("FHLBNY") borrowing, partially offset by a decrease in the floating interest rate related to the Company's outstanding fixed to floating rate long-term subordinated notes, which is reset quarterly, per the note agreement. The floating rate was 6.86% as of September 30, 2025, compared to 7.76% as of September 30, 2024.

<u>Income Tax Expense (Benefit).</u> Income tax benefit was $8 million and income tax expense was $67 million for the three months ended September 30, 2025 and 2024, respectively. Income tax expense was $81 million and $266 million for the nine months ended September 30, 2025 and 2024, respectively. Income tax expense is primarily a function of the geographic location of the Company's pre-tax income and the statutory tax rates in those jurisdictions. The effective tax rate ("ETR") is primarily affected by tax-exempt investment income, foreign tax credits and dividends. Variations in the ETR generally result from changes in the relative levels of pre-tax income, including the impact of catastrophe losses, foreign exchange gains (losses) and net gains (losses) on investments, among jurisdictions with different tax rates.

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On July 4, 2025, The One Big Beautiful Bill was signed into law. The One Big Beautiful Bill did not have a material impact on our results of operations, financial condition, or cash flows upon enactment in the third quarter of 2025, and we do not expect it to have a material impact in the future; however, we will continue to evaluate the impact of The One Big Beautiful Bill.

**Net Income (Loss).** 

Our net income was $117 million and $279 million for the three months ended September 30, 2025 and 2024, respectively. Our net income was $541 million and $1.1 billion for the nine months ended September 30, 2025 and 2024, respectively. The period over period changes in net income were primarily driven by the financial component fluctuations explained above.

**Ratios.**

Our combined ratio increased by 9.3 points to 107.2% for the three months ended September 30, 2025, compared to 97.9% for the three months ended September 30, 2024 and increased by 10.4 points to 103.3% for the nine months ended September 30, 2025, compared to 92.9% for the nine months ended September 30, 2024. The period over period changes in combined ratio were primarily driven by the components discussed below.

The loss ratio component increased by 9.2 points to 79.1% for the three months ended September 30, 2025, compared to 69.9% for the three months ended September 30, 2024, mainly due to a $378 million increase in unfavorable development on prior year attritional losses, partially offset by a $196 million decrease in catastrophe losses. The loss ratio component increased by 9.9 points to 75.0% for the nine months ended September 30, 2025, compared to 65.1% for the nine months ended September 30, 2024, primarily due to an increase of $189 million in current year catastrophes losses, an increase of $177 million in current year attritional losses and unfavorable prior year development on attritional losses of $378 million.

The commission and brokerage ratio components increased to 22.1% for the three months ended September 30, 2025, compared to 21.3% for the three months ended September 30, 2024, and increased to 22.0% for the nine months ended September 30, 2025, compared to 21.1% for the nine months ended September 30, 2024. The period over period increases were mainly due to the impact of changes in the mix of business.

The other underwriting expense ratio component decreased to 6.1% from 6.7% for the three months ended September 30, 2025 and 2024, respectively, and decreased to 6.3% from 6.6% for the nine months ended September 30, 2025 and 2024, respectively. The decreases for the three and nine month comparative periods were mainly due to the impact of changes in the mix of business.

**Stockholder's Equity.** 

Stockholder's equity increased by $951 million to $8.2 billion at September 30, 2025 from $7.3 billion at December 31, 2024, principally as a result of $541 million of net income, $370 million of net unrealized appreciation on fixed income available for sale securities, net of tax, and $48 million of net foreign currency translation gains, partially offset by $8 million of net benefit plan obligation adjustments.

**Consolidated Investment Results**

**Net Investment Income.** 

Net investment income increased by 16.3% to $368 million for the three months ended September 30, 2025, compared to $316 million for the three months ended September 30, 2024. The increase for the three months ended September 30, 2025 was primarily the result of an increase of $52 million in limited partnership income. Net investment income increased by 2.5% to $1.0 billion for the nine months ended September 30, 2025, compared to $976 million for the nine months ended September 30, 2024. The increase for the nine months ended September 30, 2025 was primarily the result of an increase of $33 million in income from fixed maturity securities, partially offset by a decrease of $17 million from limited partnership income. The limited partnership income primarily reflects changes in reported net asset values. As such, until these asset values are monetized and the resultant income is distributed, they are subject to volatile future increases or decreases in the asset value.

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The following table shows the components of net investment income for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| (Dollars in millions) | 2025 | 2024 | 2025 | 2024 |
| Fixed maturities | $258 | $257 | $790 | $757 |
| Equity securities | 1 | 1 | 3 | 3 |
| Short-term investments and cash | 25 | 28 | 68 | 72 |
| Other invested assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Limited partnerships | 48 | (4) | 47 | 64 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends from preferred shares of affiliate | 8 | 8 | 23 | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 36 | 36 | 87 | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross investment income before adjustments | 376 | 326 | 1019 | 1005 |
| Funds held interest income (expense) | 1 | 1 | 7 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross investment income | 377 | 327 | 1025 | 1011 |
| Investment expenses | 10 | 11 | 25 | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income | $368 | $316 | $1000 | $976 |

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(Some amounts may not reconcile due to rounding.)

The following table shows a comparison of various investment yields for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>September 30, | Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | Nine Months Ended<br>September 30, |
| | 2025 | 2024 | 2025 | 2024 |
| Annualized pre-tax yield on average cash and invested assets | 5.1% | 4.9% | 4.7% | 5.2% |
| Annualized after-tax yield on average cash and invested assets | 4.2% | 4.0% | 3.9% | 4.2% |

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**Net Gains (Losses) on Investments.**

The following table presents the composition of our net gains (losses) on investments for the periods indicated:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, |
| (Dollars in millions) | 2025 | 2024 | Variance | 2025 | 2024 | Variance |
| <u>Realized gains (losses) from dispositions:</u> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fixed maturity securities - available for sale |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gains | $6 | $2 | $4 | $12 | $15 | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses | (41) | (4) | (37) | (49) | (37) | (12) |
| &nbsp;&nbsp;&nbsp;Total | (35) | (2) | (33) | (37) | (23) | (15) |
| &nbsp;&nbsp;&nbsp;Fixed maturity securities - held to maturity |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gains |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses |  |  |  | (1) |  | (1) |
| &nbsp;&nbsp;&nbsp;Total |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Equity securities |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gains |  |  |  |  | 2 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total |  |  |  |  | 1 | (1) |
| &nbsp;&nbsp;&nbsp;Other Invested Assets |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gains |  | 1 | (1) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total |  | 1 | (1) |  |  |  |
| Total net realized gains (losses) from dispositions |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gains | 6 | 2 | 4 | 13 | 17 | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses | (41) | (4) | (37) | (50) | (38) | (12) |
| &nbsp;&nbsp;&nbsp;Total | (35) | (2) | (34) | (38) | (21) | (16) |
| <u>Allowance for credit losses</u> | (12) | (9) | (3) | (14) | (3) | (11) |
| <u>Gains (losses) from fair value adjustments</u> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Equity securities | 1 | 1 | (1) | 3 | (2) | 5 |
| &nbsp;&nbsp;&nbsp;Other invested assets | 9 | 47 | (38) | 104 | 28 | 77 |
| Total | 10 | 49 | (39) | 108 | 26 | 82 |
| Total net gains (losses) on investments | $(37) | $39 | $(75) | $56 | $1 | $55 |

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(Some amounts may not reconcile due to rounding.)

Total net gains (losses) on investments during the three months ended September 30, 2025 primarily consist of $35 million of losses due to the disposition of investments and an increase to the allowance for credit losses of $12 million, partially offset by $10 million of gains from fair value adjustments on other invested assets and equity securities.

Total net gains (losses) on investments during the nine months ended September 30, 2025 primarily relate to $108 million of gains from fair value adjustments on other invested assets and equity securities, partially offset by $38 million of losses due to disposition of investments and an increase to the allowance for credit losses of $14 million.

**Segment Results.**

Our two reportable segments, Reinsurance and Insurance, each have executive leadership who are responsible for the overall performance of their respective segments and who are directly accountable to our chief operating decision maker ("CODM"), the President and Chief Executive Officer of Everest Group, Ltd., who is ultimately responsible for reviewing the business to assess performance, make operating decisions and allocate resources. We report the results of our operations consistent with the manner in which our CODM reviews the business.

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During the fourth quarter of 2024, the Company revised its classification and presentation of certain run-off business, previously included within the Reinsurance and Insurance reportable segments, as part of a new segment called "Other". The new Other segment 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 asbestos and environmental ("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. Additionally, as part of the segment results presentation, we have separately presented the Company's affiliated reinsurance arrangements with its affiliated Bermuda entities. See Note 15 of the Notes to the consolidated financial statements for a discussion of reinsurance transactions with its affiliated Bermuda entities that are included in this segment presentation. These segment presentation changes have been reflected retrospectively. The Company continues to have two reportable segments that actively sell products, Reinsurance and Insurance, consistent with how the on-going business is managed.

The Company does not review and evaluate the financial results of its segments based upon balance sheet data. Management generally monitors and evaluates the financial performance of these segments based upon their underwriting results. Underwriting results include earned premium less losses and LAE incurred, commission and brokerage expenses and other underwriting expenses. The Company measures its underwriting results using ratios, in particular, loss, commission and brokerage and other underwriting expense ratios, which, respectively, divide incurred losses, commissions and brokerage and other underwriting expenses by premiums earned. Management has determined that these measures are appropriate and align with how the business is managed. We continue to evaluate our segments as our business evolves and may further refine our segments and financial performance measures.

The following discusses the underwriting results for each of our segments for the periods indicated, excluding the impact of reinsurance with its affiliated Bermuda entities. In the three months ended September 30, 2025, the impact of reinsurance with its affiliated Bermuda entities was an underwriting loss of $51 million that was driven by ceded written premiums of $61 million, ceded earned premiums of $97 million and ceded incurred losses and LAE of $46 million. In the nine months ended September 30, 2025, the impact of reinsurance with its affiliated Bermuda entities was an underwriting loss of $289 million that was driven by ceded written premiums of $355 million, ceded earned premiums of $331 million and ceded incurred losses and LAE of $42 million. In the three months ended September 30, 2024, the impact of reinsurance with its affiliated Bermuda entities was an underwriting loss of $122 million which was driven by ceded written premiums of $118 million, ceded earned premiums of $118 million and ceded incurred losses and LAE of $3 million. In the nine months ended September 30, 2024, the impact of reinsurance with its affiliated Bermuda entities was an underwriting loss of $354 million which was driven by ceded written premiums of 349 million, ceded earned premiums of $349 million and ceded incurred losses and LAE of $3 million. See Note 6 of the Notes to the consolidated financial statements for further details.

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**Reinsurance.**

The following table presents the underwriting results and ratios for the Reinsurance segment for the periods indicated:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, |
| (Dollars in millions) | 2025 | 2024 | Variance | % Change | 2025 | 2024 | Variance | % Change |
| Gross written premiums | $1987 | $2018 | (31) | (1.5)% | $6031 | $5970 | $61 | 1.0% |
| Net written premiums | 1734 | 1796 | (62) | (3.4)% | 5308 | 5410 | (102) | (1.9)% |
| Premiums earned | $1726 | $1785 | $(59) | (3.3)% | $5337 | $5087 | $250 | 4.9% |
| Incurred losses and LAE | 858 | 1163 | (304) | (26.2)% | 3266 | 3031 | 235 | 7.8% |
| Commission and brokerage | 428 | 427 | 1 | 0.2% | 1305 | 1219 | 85 | 7.0% |
| Other underwriting expenses | 39 | 56 | (18) | (31.0)% | 135 | 148 | (13) | (8.6)% |
| Underwriting gain (loss) | $400 | $139 | $262 | NM | $631 | $688 | $(58) | (8.4)% |
|  |  |  |  | Point Chg |  |  |  | Point Chg |
| Loss ratio | 49.8% | 65.1% |  | (15.4) | 61.2% | 59.6% |  | 1.6 |
| Commission and brokerage ratio | 24.8% | 23.9% |  | 0.9 | 24.4% | 24.0% |  | 0.5 |
| Other underwriting expense ratio | 2.3% | 3.2% |  | (0.9) | 2.5% | 2.9% |  | (0.4) |
| Combined ratio | 76.8% | 92.2% |  | (15.4) | 88.2% | 86.5% |  | 1.7 |

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(Some amounts may not reconcile due to rounding.)

(NM, not meaningful)

<u>Premiums.</u> Gross written premiums decreased by 1.5%, remaining relatively constant at $2.0 billion for the three months ended September 30, 2025, compared to $2.0 billion for the three months ended September 30, 2024, primarily driven by the effects of underwriting actions on casualty pro rata and casualty excess of loss, partially offset by property excess business. Gross written premiums increased by 1.0%, remaining relatively constant at $6.0 billion for the nine months ended September 30, 2025, compared to $6.0 billion for the nine months ended September 30, 2024, primarily driven by property catastrophe excess of loss and property pro rata lines of business, partially offset by actions taken on our casualty business.

Net written premiums decreased by 3.4% to $1.7 billion for the three months ended September 30, 2025, compared to $1.8 billion for the three months ended September 30, 2024. Net written premiums decreased by 1.9% to $5.3 billion for the nine months ended September 30, 2025, compared to $5.4 billion for the nine months ended September 30, 2024. The decreases were driven by changes in cessions.

Premiums earned decreased by 3.3% to $1.7 billion for the three months ended September 30, 2025, compared to $1.8 billion for the three months ended September 30, 2024, comparable to the decrease in net written premiums. Premiums earned increased by 4.9% to $5.3 billion for the nine months ended September 30, 2025, compared to $5.1 billion for the nine months ended September 30, 2024, primarily driven by increased property pro rata business written that was recorded over the prior quarters which are now being earned.

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<u>Incurred Losses and LAE.</u> The following tables present the incurred losses and LAE for the Reinsurance segment for the periods indicated:

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, |
| (Dollars in millions) | Current<br>Year | Ratio %/<br>Pt Change | Ratio %/<br>Pt Change | Prior<br>Years | Ratio %/<br>Pt Change | Ratio %/<br>Pt Change | Total<br>Incurred | Ratio %/<br>Pt Change | Ratio %/<br>Pt Change |
| <u>2025</u> |  |  |  |  |  |  |  |  |  |
| Attritional | $944 | 54.7 | % | $(97) | -5.6 | % | 847 | 49.1 | % |
| Catastrophes | 45 | 2.6 | % | (34) | (2.0) | % | 11 | 0.6 | % |
| Total Segment | $989 | 57.3 | % | $(131) | (7.6) | % | $858 | 49.8 | % |
| <u>2024</u> |  |  |  |  |  |  |  |  |  |
| Attritional | $955 | 53.5 | % | $(3) | (0.1) | % | 952 | 53.4 | % |
| Catastrophes | 222 | 12.4 | % | (11) | (0.6) | % | 210 | 11.8 | % |
| Total Segment | $1177 | 65.9 | % | $(14) | (0.8) | % | $1163 | 65.1 | % |
| <u>Variance 2025/2024</u> |  |  |  |  |  |  |  |  |  |
| Attritional | $(11) | 1.2 | pts | $(94) | (5.5) | pts | $(105) | (4.2) | pts |
| Catastrophes | (177) | (9.8) | pts | (23) | (1.3) | pts | (199) | (11.1) | pts |
| Total Segment | $(187) | (8.6) | pts | $(117) | (6.8) | pts | $(304) | (15.4) | pts |

---

(Some amounts may not reconcile due to rounding.)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, |
| (Dollars in millions) | Current<br>Year | Ratio %/<br>Pt Change | Ratio %/<br>Pt Change | Prior<br>Years | Ratio %/<br>Pt Change | Ratio %/<br>Pt Change | Total<br>Incurred | Ratio %/<br>Pt Change | Ratio %/<br>Pt Change |
| <u>2025</u> |  |  |  |  |  |  |  |  |  |
| Attritional | $2856 | 53.5 | % | $(78) | (1.5) | % | 2778 | 52.1 | % |
| Catastrophes | 519 | 9.7 | % | (32) | (0.6) | % | 488 | 9.1 | % |
| Total Segment | $3376 | 63.3 | % | $(110) | (2.1) | % | $3266 | 61.2 | % |
| <u>2024</u> |  |  |  |  |  |  |  |  |  |
| Attritional | $2746 | 54.0 | % | $3 | 0.1 | % | 2748 | 54.0 | % |
| Catastrophes | 319 | 6.3 | % | (37) | (0.7) | % | 282 | 5.6 | % |
| Total Segment | $3065 | 60.2 | % | $(34) | (0.7) | % | $3031 | 59.6 | % |
| <u>Variance 2025/2024</u> |  |  |  |  |  |  |  |  |  |
| Attritional | $111 | (0.5) | pts | $(81) | (1.5) | pts | $30 | (2.0) | pts |
| Catastrophes | 200 | 3.5 | pts | 5 | 0.1 | pts | 205 | 3.6 | pts |
| Total Segment | $311 | 3.0 | pts | $(76) | (1.4) | pts | $235 | 1.6 | pts |

---

(Some amounts may not reconcile due to rounding.)

Incurred losses decreased by 26.2% to $858 million for the three months ended September 30, 2025, compared to $1.2 billion for the three months ended September 30, 2024. The decrease was driven by an increase of favorable development on prior year attritional losses of $94 million, a decrease of $11 million in current year attritional losses, a decrease of $177 million in current year catastrophe losses and an increase in favorable development on prior year catastrophe losses of $23 million.

The increase in favorable development on prior year attritional losses of $94 million was primarily due to prior year development related to reserve studies reflecting better-than-expected loss emergence in property and other short-tail lines. The decrease in current year attritional losses was mainly related to the impact of changes in the mix of business.

The current year catastrophe losses of $45 million for the three months ended September 30, 2025 related primarily to Typhoon Ragasa ($20 million), the 2025 U.S. September floods ($15 million) and the 2025 Philippines earthquake ($10 million). The current year catastrophe losses of $222 million for the three months ended September 30, 2024 related primarily to Hurricane Debby ($60 million), Hurricane Helene ($57 million), Hurricane Beryl ($56 million) and the 2024 third quarter Calgary Alberta storms ($35 million). For the three months ended September 30, 2025, the favorable

------

development on prior year catastrophe losses was mainly due to reserves released related to the 2022 Hurricane Ian event.

Incurred losses increased by 7.8% to $3.3 billion for the nine months ended September 30, 2025, compared to $3.0 billion for the nine months ended September 30, 2024. The increase was primarily due to an increase of $111 million in current year attritional losses and an increase of $200 million in current year catastrophe losses, partially offset by an increase in favorable development on prior year attritional losses of $81 million.

The increase in current year attritional losses was mainly related to the impact of the increase in premiums earned. The favorable development on prior year attritional losses was primarily due to prior year development related to reserve studies, partially offset by $57 million related to the Russia/Ukraine court ruling.

The current year catastrophe losses of $519 million for the nine months ended September 30, 2025 related primarily to the 2025 Southern California wildfires ($453 million), 2025 Myanmar earthquakes ($20 million), Typhoon Ragasa ($20 million), the 2025 U.S. September floods ($15 million) and the 2025 Philippines earthquake ($10 million). The $319 million of current year catastrophe losses for the nine months ended September 30, 2024 related primarily to Hurricane Helene ($57 million), Hurricane Beryl ($56 million), Hurricane Debby ($59 million), the 2024 Brazil Floods ($35 million), the 2024 third quarter Calgary Alberta storms ($35 million), the 2024 Dubai floods ($20 million), the 2024 Taiwan earthquake ($23 million) and the 2024 Baltimore bridge collapse ($23 million).

<u>Segment Expenses.</u> Commission and brokerage expense increased by 0.2% to $428 million for the three months ended September 30, 2025, compared to $427 million for the three months ended September 30, 2024. Commission and brokerage expense increased by 7.0% to $1.3 billion for the nine months ended September 30, 2025, compared to $1.2 billion for the nine months ended September 30, 2024. The increases were mainly due to changes in the mix of business.

Segment other underwriting expenses decreased to $39 million for the three months ended September 30, 2025 from $56 million for the three months ended September 30, 2024. Segment other underwriting expenses decreased to $135 million for the nine months ended September 30, 2025 from $148 million for the nine months ended September 30, 2024. The decreases in other underwriting expenses were mainly due to change in mix of business.

**Insurance.**

The following table presents the underwriting results and ratios for the Insurance segment for the periods indicated:

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| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, |
| (Dollars in millions) | 2025 | 2025 | 2024 | 2024 | Variance | % Change | 2025 | 2025 | 2024 | 2024 | Variance | % Change |
| Gross written premiums | $| 786 | $| 770 | $17 | 2.2% | $| 2441 | $| 2587 | $(146) | (5.7)% |
| Net written premiums | 558 | 558 | 535 | 535 | 24 | 4.4% | 1769 | 1769 | 1805 | 1805 | (36) | (2.0)% |
| Premiums earned | $| 600 | $| 629 | $(29) | (4.7)% | $| 1815 | $| 1907 | $(92) | (4.8)% |
| Incurred losses and LAE | 827 | 827 | 437 | 437 | 390 | 89.1% | 1738 | 1738 | 1274 | 1274 | 464 | 36.4% |
| Commission and brokerage | 63 | 63 | 64 | 64 |  | (0.8)% | 198 | 198 | 192 | 192 | 6 | 3.2% |
| Other underwriting expenses | 95 | 95 | 94 | 94 | 1 | 0.9% | 288 | 288 | 282 | 282 | 6 | 2.2% |
| Underwriting gain (loss) | $| (386) | $| 34 | $(419) | NM | $| (409) | $| 159 | $(568) | NM |
|  |  |  |  |  |  | Point Chg |  |  |  |  |  | Point Chg |
| Loss ratio | 137.9% | 137.9% | 69.5% | 69.5% |  | 68.4 | 95.8% | 95.8% | 66.8% | 66.8% |  | 28.9 |
| Commission and brokerage ratio | 10.6% | 10.6% | 10.2% | 10.2% |  | 0.4 | 10.9% | 10.9% | 10.1% | 10.1% |  | 0.8 |
| Other underwriting expense ratio | 15.9% | 15.9% | 15.0% | 15.0% |  | 0.9 | 15.9% | 15.9% | 14.8% | 14.8% |  | 1.1 |
| Combined ratio | 164.3% | 164.3% | 94.6% | 94.6% |  | 69.7 | 122.5% | 122.5% | 91.6% | 91.6% |  | 30.9 |

---

(Some amounts may not reconcile due to rounding.)

(NM, not meaningful)

<u>Premiums.</u> Gross written premiums increased by 2.2% to $786 million for the three months ended September 30, 2025, compared to $770 million for the three months ended September 30, 2024, primarily due to an increase in accident and health business, professional liability business and other specialty business, partially offset by portfolio actions taken on specialty casualty lines of business. Gross written premiums decreased by 5.7% to $2.4 billion for the nine months ended

------

September 30, 2025, compared to $2.6 billion for the nine months ended September 30, 2024, primarily due to portfolio actions taken on specialty casualty lines of business, partially offset by an increase in accident and health business and property/short tail business.

Net written premiums increased by 4.4% to $558 million for the three months ended September 30, 2025, compared to $535 million for the three months ended September 30, 2024, primarily driven by the increase in gross written premiums and overall mix of business. Net written premiums decreased by 2.0% to $1.8 billion for the nine months ended September 30, 2025, compared to $1.8 billion for the nine months ended September 30, 2024, primarily driven by the decrease in gross written premiums and overall mix of business.

Premiums earned decreased by 4.7% to $600 million for the three months ended September 30, 2025, compared to $629 million for the three months ended September 30, 2024. Premiums earned decreased by 4.8% to $1.8 billion for the nine months ended September 30, 2025, compared to $1.9 billion for the nine months ended September 30, 2024. The change in premiums earned relative to net written premiums is the result of timing as the higher base premium written in 2024 is being earned through the 2025 period; premiums are earned ratably over the coverage period, whereas written premiums are generally recorded at the initiation of the coverage period.

<u>Incurred Losses and LAE.</u> The following tables present the incurred losses and LAE for the Insurance segment for the periods indicated.

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, |
| (Dollars in millions) | Current<br>Year | Ratio %/<br>Pt Change | Ratio %/<br>Pt Change | Prior<br>Years | Ratio %/<br>Pt Change | Ratio %/<br>Pt Change | Total<br>Incurred | Ratio %/<br>Pt Change | Ratio %/<br>Pt Change |
| <u>2025</u> |  |  |  |  |  |  |  |  |  |
| Attritional | $434 | 72.3 | % | $388 | 64.8 | % | 822 | 137.0 | % |
| Catastrophes | 5 | 0.8 | % |  |  | % | 5 | 0.8 | % |
| Total Segment | $439 | 73.1 | % | $388 | 64.8 | % | $827 | 137.9 | % |
| <u>2024</u> |  |  |  |  |  |  |  |  |  |
| Attritional | $414 | 65.7 | % | $— |  | % | 413 | 65.7 | % |
| Catastrophes | 24 | 3.8 | % |  |  | % | 24 | 3.8 | % |
| Total Segment | $438 | 69.5 | % | $— |  | % | $437 | 69.5 | % |
| <u>Variance 2025/2024</u> |  |  |  |  |  |  |  |  |  |
| Attritional | $20 | 6.6 | pts | $389 | 64.8 | pts | $409 | 71.4 | pts |
| Catastrophes | (19) | (3.0) | pts |  |  | pts | (19) | (3.0) | pts |
| Total Segment | $1 | 3.6 | pts | $389 | 64.8 | pts | $390 | 68.4 | pts |

---

(Some amounts may not reconcile due to rounding.)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, |
| (Dollars in millions) | Current<br>Year | Ratio %/<br>Pt Change | Ratio %/<br>Pt Change | Prior<br>Years | Ratio %/<br>Pt Change | Ratio %/<br>Pt Change | Total<br>Incurred | Ratio %/<br>Pt Change | Ratio %/<br>Pt Change |
| <u>2025</u> |  |  |  |  |  |  |  |  |  |
| Attritional | $1335 | 73.5 | % | $388 | 21.4 | % | 1723 | 95.0 | % |
| Catastrophes | 15 | 0.8 | % | (1) |  | % | 15 | 0.8 | % |
| Total Segment | $1350 | 74.4 | % | $388 | 21.4 | % | $1738 | 95.8 | % |
| <u>2024</u> |  |  |  |  |  |  |  |  |  |
| Attritional | $1239 | 65.0 | % | $— |  | % | 1239 | 65.0 | % |
| Catastrophes | 36 | 1.9 | % | (1) | (0.1) | % | 35 | 1.9 | % |
| Total Segment | $1275 | 66.9 | % | $(1) | (0.1) | % | $1274 | 66.8 | % |
| <u>Variance 2025/2024</u> |  |  |  |  |  |  |  |  |  |
| Attritional | $96 | 8.6 | pts | $389 | 21.4 | pts | 484 | 30.0 | pts |
| Catastrophes | (21) | (1.1) | pts |  |  | pts | (21) | (1.0) | pts |
| Total Segment | $75 | 7.5 | pts | $389 | 21.5 | pts | $464 | 28.9 | pts |

---

(Some amounts may not reconcile due to rounding.)

------

Incurred losses and LAE increased by 89.1% to $827 million for the three months ended September 30, 2025, compared to $437 million for the three months ended September 30, 2024. The increase was due to an increase of $20 million in current year attritional losses and an increase of $389 million in unfavorable development on prior year attritional losses, partially offset by a decrease of $19 million in current year catastrophe losses.

The increase in current year attritional losses and the unfavorable development on prior year attritional losses were both primarily due to reserve strengthening in casualty lines of business driven by elevated loss experience in excess casualty and liability lines primarily for accident years 2022-2024.

The $5 million of current year catastrophe losses for the three months ended September 30, 2025 related to the 2025 U.S. September floods. The $24 million of current year catastrophe losses for the three months ended September 30, 2024, related primarily to Hurricane Helene ($16 million) and Hurricane Beryl ($10 million).

Incurred losses and LAE increased by 36.4% to $1.7 billion for the nine months ended September 30, 2025, compared to $1.3 billion for the nine months ended September 30, 2024, mainly due to an increase of $96 million in current year attritional losses and an increase of $389 million in unfavorable development on prior year attritional losses, partially offset by a decrease of $21 million in current year catastrophe losses.

The increase in current year attritional losses and the unfavorable development on prior year attritional losses were both primarily due to reserve strengthening in casualty lines of business driven by elevated loss experience in excess casualty and liability lines primarily for accident years 2022-2024.

The $15 million of current year catastrophe losses for the nine months ended September 30, 2025 related primarily to the 2025 Southern California wildfires ($6 million), the 2025 U.S. September floods ($5 million) and the 2025 U.S. Midwest convective storms ($5 million). The $36 million of current year catastrophe losses for the nine months ended September 30, 2024 related primarily to Hurricane Helene ($16 million), Hurricane Beryl ($10 million) and the 2024 second quarter U.S. convective storms ($10 million).

<u>Segment Expenses.</u> Commission and brokerage expenses decreased by 0.8% to $63 million for the three months ended September 30, 2025, compared to $64 million for the three months ended September 30, 2024. Commission and brokerage expenses increased by 3.2% to $198 million for the nine months ended September 30, 2025, compared to $192 million for the nine months ended September 30, 2024. While quarter to date commission, brokerage, taxes and fees remained relatively consistent, the increase in year-to-date commission, brokerage, taxes and fees was mainly due to changes in the mix of business.

Segment other underwriting expenses increased to $95 million for the three months ended September 30, 2025, compared to $94 million for the three months ended September 30, 2024. Segment other underwriting expenses increased to $288 million for the nine months ended September 30, 2025, compared to $282 million for the nine months ended September 30, 2024. The increases were mainly due to the impact of our investment in insurance operations.

**Other.** 

The Other segment 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.

------

The following table presents the underwriting results and ratios for the Other segment for the periods indicated:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, |
| (Dollars in millions) | 2025 | 2024 | Variance | % Change | 2025 | 2024 | Variance | % Change |
| Gross written premiums | $22 | $42 | $(20) | (47.7)% | $72 | $154 | $(82) | (53.4)% |
| Net written premiums | 21 | 37 | (17) | (44.8)% | 68 | 130 | (62) | (47.9)% |
| Premiums earned | $23 | $44 | $(21) | (47.1)% | $84 | $135 | $(51) | (37.9)% |
| Incurred losses and LAE | 142 | 33 | 110 | NM | 220 | 108 | 112 | NM |
| Commission and brokerage | 6 | 6 | (1) | (9.6)% | 17 | 21 | (4) | (20.4)% |
| Other underwriting expenses | 2 | 6 | (4) | (60.9)% | 9 | 19 | (10) | (53.7)% |
| Underwriting gain (loss) | $(127) | $(1) | $(126) | NM | $(162) | $(14) | $(148) | NM |

---

(Some amounts may not reconcile due to rounding.)

(NM, not meaningful)

<u>Incurred Losses and LAE.</u> Incurred losses and LAE increased to $142 million for the three months ended September 30, 2025, compared to $33 million for the three months ended September 30, 2024. Incurred losses and LAE increased to $220 million for the nine months ended September 30, 2025, compared to $108 million for the nine months ended September 30, 2024. The increase in incurred losses was due to unfavorable development on prior year attritional losses driven by casualty lines, primarily from our sports and leisure business.

**LIQUIDITY AND CAPITAL RESOURCES** 

<u>Capital.</u> Stockholder's equity at September 30, 2025 and December 31, 2024 was $8.2 billion and $7.3 billion, respectively. Management's objective in managing capital is to ensure its overall capital level, as well as the capital levels of its operating subsidiaries, exceed the amounts required by regulators, the amount needed to support our current financial strength ratings from rating agencies and our own economic capital models. The Company's capital has historically exceeded these benchmark levels.

Our main operating company, Everest Re, is regulated by the State of Delaware's Department of Insurance. The regulatory body has its own capital adequacy models based on statutory capital as opposed to GAAP basis equity. Failure to meet the required statutory capital levels could result in various regulatory restrictions.

The regulatory targeted capital and the actual statutory capital for Everest Re were as follows:

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| | | |
|:---|:---|:---|
| | Everest Re <sup>(1)</sup> | Everest Re <sup>(1)</sup> |
| | At December 31, | At December 31, |
| (Dollars in millions) | 2024 | 2023 |
| Regulatory targeted capital | $4799 | $4242 |
| Actual capital | $8126 | $6963 |

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 (1) Regulatory targeted capital represents 200% of the RBC authorized control level calculation for the applicable year.

Our financial strength ratings, as determined by A.M. Best, Standard & Poor's and Moody's, are important, as they provide our customers and investors with an independent assessment of our financial strength using a rating scale that provides for relative comparisons. We continue to possess significant financial flexibility and access to debt markets as a result of our financial strength, as evidenced by the financial strength ratings assigned by independent rating agencies.

We maintain our own economic capital models to monitor and project our overall capital, as well as the capital at our operating subsidiaries. A key input to the economic models is projected income, and this input is continually compared to actual results, which may require a change in the capital strategy.

We may continue, from time to time, to seek to retire portions of our outstanding debt securities through cash repurchases, in open-market purchases, privately negotiated transactions or otherwise. Such repurchases, if any, will be subject to and depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved in any such transactions, individually or in the aggregate, may be material.

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<u>Liquidity.</u> Our liquidity requirements are generally met from positive cash flow from operations. Positive cash flow results from reinsurance and insurance premiums being collected prior to disbursements for claims, with disbursements generally taking place over an extended period after the collection of premiums, sometimes a period of many years. Collected premiums are generally invested, prior to their use in such disbursements, and investment income provides additional funding for loss payments. Our net cash flows from operating activities were $1.8 billion and $2.0 billion for the nine months ended September 30, 2025 and 2024, respectively.

If disbursements for losses and LAE, policy acquisition costs and other operating expenses were to exceed premium inflows, cash flow from reinsurance and insurance operations would be negative. The effect on cash flow from reinsurance and insurance operations would be partially offset by cash flow from investment income. Additionally, cash inflows from investment maturities of both short-term investments and longer-term maturities are available to supplement other operating cash flows. We do not expect to supplement negative insurance operations cash flows with investment dispositions.

As the timing of payments for losses and LAE cannot be predicted with certainty, we maintain portfolios of long-term invested assets with varying maturities, along with short-term investments that provide additional liquidity for payment of claims. At September 30, 2025 and December 31, 2024, we held cash and short-term investments of $3.3 billion and $3.4 billion, respectively. Our short-term investments are generally readily marketable and can be converted to cash. In addition to these cash and short-term investments, at September 30, 2025, we had $653 million of fixed maturity securities - available for sale maturing within one year or less, $4.1 billion maturing within one to five years and $4.6 billion maturing after five years. We believe that these fixed maturity securities, in conjunction with the short-term investments and positive cash flow from operations, provide ample sources of liquidity for the expected payment of losses and LAE in the near future. We do not anticipate selling a significant amount of securities to pay losses and LAE. At September 30, 2025, we had $1 million of net pre-tax unrealized depreciation related to fixed maturity - available for sale securities, comprised of $327 million of pre-tax unrealized depreciation and $326 million of pre-tax unrealized appreciation.

Management generally expects annual positive cash flow from operations, which reflects the strength of overall pricing, as well as the growth in business written. However, given the catastrophic events observed in recent periods, cash flow from operations may decline and could become negative in the near term as significant claim payments are made related to the catastrophes. However, as indicated above, the Company has access to ample liquidity to settle its catastrophe claims and any payments due for its catastrophe bond program.

In addition to our cash flows from operations and liquid investments, Everest Re is a member of the FHLBNY, which allows Everest Re to borrow up to 10% of its statutory admitted assets. As of September 30, 2025, Everest Re had statutory admitted assets of approximately $33.0 billion which provides borrowing capacity of up to approximately $3.3 billion. As of September 30, 2025, Everest Re had $1.0 billion of borrowings outstanding that begin to expire in 2025. See Note 9 – Federal Home Loan Bank Membership to the Notes to the consolidated financial statements in Part I, Item I of this Form 10-Q for further details.

**Market Sensitive Instruments.**

The Securities and Exchange Commission's (the "SEC") Financial Reporting Release #48 requires registrants to clarify and expand upon the existing financial statement disclosure requirements for derivative financial instruments, derivative commodity instruments and other financial instruments (collectively, "market sensitive instruments"). We do not generally enter into market sensitive instruments for trading purposes.

Our current investment strategy seeks to maximize after-tax income through a high quality, diversified, fixed maturity portfolio, while maintaining an adequate level of liquidity. Our mix of investments is adjusted periodically, consistent with our current and projected operating results and market conditions. The fixed maturity securities in the investment portfolio are comprised of available for sale and held to maturity securities. Additionally, we have invested in equity securities.

The overall investment strategy considers the scope of present and anticipated Company operations. In particular, estimates of the financial impact resulting from non-investment asset and liability transactions, together with our capital structure and other factors, are used to develop a net liability analysis. This analysis includes estimated payout characteristics for which our investments provide liquidity. This analysis is considered in the development of specific investment strategies for asset allocation, duration and credit quality. The change in overall market sensitive risk exposure principally reflects the asset changes that took place during the period.

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<u>Interest Rate Risk.</u> Our $29.2 billion cash and invested assets portfolio at September 30, 2025 is principally comprised of fixed maturity securities, which are generally subject to interest rate risk and some foreign currency exchange rate risk, and some equity securities, which are subject to price fluctuations and some foreign exchange rate risk. The overall economic impact of the foreign exchange risks on the investment portfolio is partially mitigated by changes in the dollar value of foreign currency denominated liabilities and their associated income statement impact.

Interest rate risk is the potential change in value of the fixed maturity securities portfolio from a change in market interest rates. In a declining interest rate environment, interest rate risk includes prepayment risk on the $6.0 billion of mortgage-backed securities in the $20.4 billion fixed maturity portfolio. Prepayment risk results from potential accelerated principal payments that shorten the average life, and thus, the expected yield of the security.

The table below displays the potential impact of fair value fluctuations and after-tax unrealized appreciation on our fixed maturity portfolio (including $2.6 billion of short-term investments) for the period indicated based on upward and downward parallel shifts of 100 and 200 basis points in interest rates. The market value change under the various interest rate change scenarios was estimated by taking duration into account, with modeling done at the individual security level.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Impact of Interest Rate Shift in Basis Points<br>At September 30, 2025 | Impact of Interest Rate Shift in Basis Points<br>At September 30, 2025 | Impact of Interest Rate Shift in Basis Points<br>At September 30, 2025 | Impact of Interest Rate Shift in Basis Points<br>At September 30, 2025 | Impact of Interest Rate Shift in Basis Points<br>At September 30, 2025 |
| | -200 | -100 | 0 | 100 | 200 |
| (Dollars in millions) |  |  |  |  |  |
| Total Fair Value | $24635 | $23833 | $23031 | $22228 | $21426 |
| Fair Value Change from Base (%) | 7.0% | 3.5% | —% | (3.5)% | (7.0)% |
| Change in Unrealized Appreciation |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;After-tax from Base ($) | $1268 | $634 | $— | $(634) | $(1268) |

---

We had $21.2 billion and $19.3 billion of gross reserves for losses and LAE as of September 30, 2025 and December 31, 2024, respectively. These amounts are recorded at their nominal value, as opposed to present value, which would reflect a discount adjustment to reflect the time value of money. Since losses are paid out over a period of time, the present value of the reserves is less than the nominal value. As interest rates rise, the present value of the reserves decreases and, conversely, as interest rates decline, the present value increases. These movements are similar to the interest rate impacts on the fair value of investments held. While the difference between present value and nominal value is not reflected in our financial statements, our financial results will include investment income over time from the investment portfolio until the claims are paid. Our loss and loss reserve obligations have an expected duration that is reasonably consistent with our fixed income portfolio.

<u>Foreign Currency Risk.</u> Foreign currency risk is the potential change in value, income and cash flow arising from adverse changes in foreign currency exchange rates. Each of our non-U.S. operations maintains capital in the currency of the country of its geographic location consistent with local regulatory guidelines. Our operating entities may conduct business in its local currency, as well as the currency of other countries in which it operates. The primary foreign currency exposures for these operations are the Singapore and Canadian Dollars. We mitigate foreign exchange exposure by generally matching the currency and duration of our assets to our corresponding operating liabilities. In accordance with GAAP guidance, the impact on the fair value of available for sale fixed maturities due to changes in foreign currency exchange rates, in relation to functional currency, is reflected as part of other comprehensive income. Conversely, the impact of changes in foreign currency exchange rates, in relation to functional currency, on other assets and liabilities is reflected through net income as a component of other income (expense). In addition, we translate the assets, liabilities and income of non-U.S. dollar functional currency legal entities to the U.S. dollar. This translation amount is reported as a component of other comprehensive income.

**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

**Market Risk Instruments.** See "Liquidity and Capital Resources — Market Sensitive Instruments" in Part I – Item 2 of this Form 10-Q.

**ITEM 4. CONTROLS AND PROCEDURES**

As of the end of the period covered by this report, our management carried out an evaluation, with the participation of the Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")). Based on their evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures

------

are effective to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. Our management, with the participation of the Chief Executive Officer and Chief Financial Officer, also conducted an evaluation of our internal control over financial reporting to determine whether any changes occurred during the quarter covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Based on that evaluation, there has been no such change during the quarter covered by this report.

------

**PART II. OTHER INFORMATION**

**ITEM 1. LEGAL PROCEEDINGS**

In the ordinary course of business, the Company is involved in lawsuits, arbitrations and other formal and informal dispute resolution procedures, the outcomes of which will determine the Company's rights and obligations under insurance and reinsurance agreements. In some disputes, the Company seeks to enforce its rights under an agreement or to collect funds owing to it. In other matters, the Company is resisting attempts by others to collect funds or enforce alleged rights. These disputes arise from time to time and are ultimately resolved through both informal and formal means, including negotiated resolution, arbitration and litigation. In all such matters, the Company believes that its positions are legally and commercially reasonable. The Company considers the statuses of these proceedings when determining its reserves for unpaid loss and LAE.

Aside from litigation and arbitrations related to these insurance and reinsurance agreements, the Company is not a party to any other material litigation or arbitration.

**ITEM 1A. RISK FACTORS**

There have been no material changes to the risk factors disclosed in Item 1A. "Risk Factors" contained in our Annual Report on Form 10-K for the year ended December 31, 2024.

**ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS** 

None.

**ITEM 3. DEFAULTS UPON SENIOR SECURITIES**

None.

**ITEM 4. MINE SAFETY DISCLOSURES**

Not applicable.

**ITEM 5. OTHER INFORMATION**

None of our directors or officers (as defined in Exchange Act Rule 16a-1(f)) adopted, modified or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as those terms are defined in Regulation S-K, Item 408, during the fiscal quarter ended September 30, 2025.

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**ITEM 6. EXHIBITS** 

---

| | |
|:---|:---|
| Exhibit Index: | Exhibit Index: |
| Exhibit No. | Description |
| 31.1 | <u>[Section 302 Certification of James Williamson](eg-20250930xexx311holdings.htm)</u> |
| 31.2 | <u>[Section 302 Certification of Mark Kociancic](eg-20250930xexx312holdings.htm)</u> |
| 32.1 | <u>[Section 906 Certification of James Williamson and Mark Kociancic](eg-20250930xexx321holdings.htm)</u> |
| 101.INS | XBRL Instance Document |
| 101.SCH | XBRL Taxonomy Extension Schema |
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase |
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase |
| 101.LAB | XBRL Taxonomy Extension Labels Linkbase |
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

------

Everest Reinsurance Holdings, Inc.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | |
|:---|:---|
| | Everest Reinsurance Holdings, Inc.<br>(Registrant)<br>/S/ MARK KOCIANCIC |
| | Mark Kociancic |
| | Executive Vice President and |
| | &nbsp;&nbsp;&nbsp;Chief Financial Officer |
| | (Duly Authorized Officer and Principal Financial Officer) |
| Dated: November 14, 2025 | |

---

## Exhibit 31.1

Exhibit 31.1

CERTIFICATIONS

I, James Williamson, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this quarterly report on Form 10-Q of Everest Reinsurance Holdings, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

November 14, 2025

---

| |
|:---|
| /S/ JAMES WILLIAMSON |
| James Williamson |
| President and |
| &nbsp;&nbsp;&nbsp;Chief Executive Officer |

---

## Exhibit 31.2

Exhibit 31.2

CERTIFICATIONS

I, Mark Kociancic, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this quarterly report on Form 10-Q of Everest Reinsurance Holdings, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

November 14, 2025

---

| |
|:---|
| /S/ MARK KOCIANCIC |
| Mark Kociancic |
| Executive Vice President and |
| &nbsp;&nbsp;&nbsp;Chief Financial Officer |

---

## Exhibit 32.1

Exhibit 32.1

CERTIFICATIONS PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 of Everest Reinsurance Holdings, Inc., a corporation organized under the laws of Delaware (the "Company"), filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned hereby certify, pursuant to 18 U.S.C. ss. 1350, as enacted by section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

November 14, 2025

---

| |
|:---|
| /S/ JAMES WILLIAMSON |
| James Williamson |
| President and |
| &nbsp;&nbsp;&nbsp;Chief Executive Officer |
| /S/ MARK KOCIANCIC |
| Mark Kociancic |
| Executive Vice President and |
| &nbsp;&nbsp;&nbsp;Chief Financial Officer |

---

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