Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Industry Conditions.

The worldwide insurance and reinsurance businesses are highly competitive, as well as cyclical by product and market. As a result, financial results tend to fluctuate with periods of constrained availability, higher rates and stronger profits, followed by periods of abundant capacity, lower rates and constrained profitability. Competition in the types of insurance and reinsurance business that we underwrite is based on many factors, including the perceived overall financial strength of the reinsurer or insurer, ratings of the reinsurer or insurer by A.M. Best and/or Standard & Poor’s, underwriting expertise, the jurisdictions where the reinsurer or insurer is licensed or otherwise authorized, capacity and coverages offered, premiums charged, other terms and conditions of the insurance and reinsurance business offered, services offered, speed of claims payment, and reputation and experience in lines written. Furthermore, the market impact from these competitive factors related to insurance and reinsurance is generally not consistent across lines of business, domestic and international geographical areas and distribution channels.

Financial instruments, such as side cars, catastrophe bonds and collateralized reinsurance funds, provide capital markets with access to insurance and reinsurance risk exposure. The capital markets demand for these products is primarily driven by the desire to achieve greater risk diversification and potentially higher returns on their investments. This competition generally has a negative impact on rates and terms and conditions; however, the impact varies widely by market and coverage. Based on recent competitive behaviors in the insurance and reinsurance industry, natural catastrophe events and the macroeconomic backdrop, there has been dislocation in the market which has had a positive impact on rates and terms and conditions, generally, though specifics in local markets can vary.

Specifically, recent market conditions in property, particularly catastrophe excess of loss, have resulted in rate increases. As a result of the rate increases, most of the lines within property have been affected. Other casualty lines have been experiencing rate increases, while some lines such as workers’ compensation and directors and officers liability have been experiencing softer market conditions. The impact on pricing conditions is likely to change depending on the line of business and geography.

Our capital position remains a source of strength, with high quality invested assets, significant liquidity and a low operating expense ratio. Our diversified global platform with its broad mix of products, distribution and geography is resilient.

The ongoing Middle East war and the war in Ukraine continue to evolve. Economic and legal sanctions have been levied against Russia, specific named individuals and entities connected to the Russian government, as well as businesses located in the Russian Federation and/or owned by Russian nationals in numerous countries, including the United States. The significant political and economic uncertainty surrounding these wars and associated sanctions have impacted economic and investment markets both within Russia, Ukraine, the Middle East region, and around the world.

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 shareholders’ equity for the periods indicated:

			Three Months Ended June 30,												Percentage Increase/ (Decrease)						Six Months Ended June 30,												Percentage Increase/ (Decrease)
(Dollars in millions)			2024						2023									2024						2023
Gross written premiums			$	4,725					$	4,180					13.0		%				$	9,136					$	7,923					15.3		%
Net written premiums			4,084						3,674						11.2		%				7,984						7,003						14.0		%
REVENUES:
Premiums earned			$	3,693					$	3,251					13.6		%				$	7,345					$	6,352					15.6		%
Net investment income			528						357						47.9		%				985						617						59.7		%
Net gains (losses) on investments			(17)						5						NM						(24)						10						NM
Other income (expense)			23						38						(38.4)		%				54						(42)						NM
Total revenues			4,227						3,650						15.8		%				8,360						6,936						20.5		%
CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses			2,311						1,960						17.9		%				4,548						3,927						15.8		%
Commission, brokerage, taxes and fees			790						686						15.2		%				1,571						1,347						16.7		%
Other underwriting expenses			234						205						14.1		%				458						405						13.2		%
Corporate expenses			22						17						32.5		%				44						36						23.4		%
Interest, fees and bond issue cost amortization expense			37						33						13.4		%				75						65						14.9		%
Total claims and expenses			3,395						2,901						17.0		%				6,696						5,779						15.9		%
INCOME (LOSS) BEFORE TAXES			832						750						11.0		%				1,664						1,157						43.8		%
Income tax expense (benefit)			108						80						35.8		%				207						122						69.6		%
NET INCOME (LOSS)			$	724					$	670					8.0		%				$	1,457					$	1,035					40.7		%
RATIOS:															Point Change																		Point Change
Loss ratio			62.6		%				60.3		%				2.3						61.9		%				61.8		%				0.1
Commission and brokerage ratio			21.4		%				21.1		%				0.3						21.4		%				21.2		%				0.2
Other underwriting expense ratio			6.3		%				6.3		%				—						6.2		%				6.4		%				(0.1)
Combined ratio			90.3		%				87.7		%				2.6						89.6		%				89.4		%				0.2

			At June 30,						At December 31,						Percentage Increase/ (Decrease)
(Dollars in millions, except per share amounts)			2024						2023
Balance sheet data:
Total investments and cash			$	39,065					$	37,142					5.2		%
Total assets			52,560						49,399						6.4		%
Reserve for losses and loss adjustment expenses			25,853						24,604						5.1		%
Total debt			3,386						3,385						—		%
Total liabilities			38,378						36,197						6.0		%
Shareholders' equity			14,182						13,202						7.4		%
Book value per share			327.68						304.29						7.7		%

(NM, not meaningful)

(Some amounts may not reconcile due to rounding.)

Revenues.

Premiums. Gross written premiums increased by 13.0% to $4.7 billion for the three months ended June 30, 2024, compared to $4.2 billion for the three months ended June 30, 2023, reflecting a $462 million, or 16.8%, increase in our reinsurance business and a $82 million, or 5.7%, increase in our insurance business. The increase in reinsurance premiums was primarily due to property pro rata, property catastrophe excess of loss and casualty pro rata lines of business. The increase in insurance premiums compared to the prior year period was primarily due to other specialty business, property/short tail business and professional liability business partially offset by reduction in accident and health and workers’ compensation lines. Gross written premiums increased by 15.3% to $9.1 billion for the six months

ended June 30, 2024, compared to $7.9 billion for the six months ended June 30, 2023, reflecting a $1.0 billion, or 18.9%, increase in our reinsurance business and a $196 million, or 7.7%, increase in our insurance business. The increase in reinsurance premiums was primarily driven by property pro rata, property catastrophe excess of loss and casualty pro rata lines of business. The increase in insurance premiums was primarily due to other specialty business, property/short tail business and professional liability business. These increases were partially offset by reductions in accident and health and workers’ compensation lines.

Net written premiums increased by 11.2% to $4.1 billion for the three months ended June 30, 2024, compared to $3.7 billion for the three months ended June 30, 2023. Net written premiums increased by 14.0% to $8.0 billion for the six months ended June 30, 2024, compared to $7.0 billion for the six months ended June 30, 2023. These increases were consistent with the percentage changes in gross written premiums. Premiums earned increased by 13.6% to $3.7 billion during the three months ended June 30, 2024, compared to $3.3 billion during the three months ended June 30, 2023. Premiums earned increased by 15.6% to $7.3 billion for the six months ended June 30, 2024, compared to $6.4 billion for the six months ended June 30, 2023. Premiums earned generally reflect the portion of net premiums written that was recognized as revenue for the period as the exposure period expires. The change in premiums earned relative to net written premiums was primarily the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.

Other Income (Expense). We recorded other income of $23 million and $38 million for the three months ended June 30, 2024 and 2023, respectively. We recorded other income of $54 million and other expense of $42 million for the six months ended June 30, 2024 and 2023, respectively. The period over period changes were primarily the result of a $9 million gain on pension curtailment as well as fluctuations in foreign currency exchange rates. During the three months ended June 30, 2024, the Company amended its defined benefit pension plan (the “Plan”) to freeze all benefits accruals and terminate the Plan effective June 30, 2024, which resulted in a pension curtailment gain. We recognized foreign currency exchange income of $9 million and $36 million for the three months ended June 30, 2024 and 2023, respectively. We recognized foreign currency exchange income of $41 million and foreign currency exchange expense of $49 million for the six months ended June 30, 2024 and 2023, respectively.

Net Investment Income. Refer to Consolidated Investments Results Section below.

Net Gains (Losses) on Investments. Refer to Consolidated Investments Results Section below.

Claims and Expenses.

Incurred Losses and Loss Adjustment Expenses. The following tables present our incurred losses and LAE for the periods indicated.

			Three Months Ended June 30,
(Dollars in millions)			Current Year						Ratio %/ Pt Change						Prior Years						Ratio %/ Pt Change						Total Incurred						Ratio %/ Pt Change
2024
Attritional			$	2,160					58.5		%				$	—					—		%				$	2,160					58.5		%
Catastrophes			151						4.1		%				—						—		%				151						4.1		%
Total			$	2,311					62.6		%				$	—					—		%				$	2,311					62.6		%
2023
Attritional			$	1,933					59.5		%				$	—					—		%				$	1,933					59.5		%
Catastrophes			27						0.8		%				—						—		%				27						0.8		%
Total			$	1,960					60.3		%				$	—					—		%				$	1,960					60.3		%
Variance 2024/2023
Attritional			$	227					(1.0)		pts				$	—					—		pts				$	227					(1.0)		pts
Catastrophes			124						3.3		pts				—						—		pts				124						3.3		pts
Total			$	351					2.3		pts				$	—					—		pts				$	351					2.3		pts

(Some amounts may not reconcile due to rounding.)

			Six Months Ended June 30,
(Dollars in millions)			Current Year						Ratio %/ Pt Change						Prior Years						Ratio %/ Pt Change						Total Incurred						Ratio %/ Pt Change
2024
Attritional			$	4,312					58.7		%				$	—					—		%				$	4,312					58.7		%
Catastrophes			236						3.2		%				—						—		%				236						3.2		%
Total			$	4,548					61.9		%				$	—					—		%				$	4,548					61.9		%
2023
Attritional			$	3,784					59.6		%				$	—					—		%				$	3,784					59.6		%
Catastrophes			142						2.2		%				—						—		%				142						2.2		%
Total			$	3,927					61.8		%				$	—					—		%				$	3,927					61.8		%
Variance 2024/2023
Attritional			$	528					(0.9)		pts				$	—					—		pts				528						(0.9)		pts
Catastrophes			94						1.0		pts				—						—		pts				94						1.0		pts
Total			$	622					0.1		pts				$	—					—		pts				$	622					0.1		pts

(Some amounts may not reconcile due to rounding.)

Incurred losses and LAE increased by 17.9% to $2.3 billion for the three months ended June 30, 2024, compared to $2.0 billion for the three months ended June 30, 2023, primarily due to an increase of $227 million in current year attritional losses and an increase of $124 million in current year catastrophe losses. The increase in current year attritional losses was mainly due to the impact of the increase in underlying exposures due to increased premiums earned. The current year catastrophe losses of $151 million for the three months ended June 30, 2024 related primarily to the 2024 Dubai floods ($40 million), the 2024 Germany floods ($40 million), the 2024 Brazil Floods ($35 million), and the 2024 Taiwan earthquake ($23 million). The $27 million of current year catastrophe losses for the three months ended June 30, 2023 related primarily to the 2023 Turkey earthquakes ($20 million), Typhoon Mawar ($12 million), the 2023 Italian floods ($10 million), and the 2023 second quarter U.S. storms ($10 million), partially offset by $30 million of reinsurance recoveries related to Hurricane Ian.

Incurred losses and LAE increased by 15.8% to $4.5 billion for the six months ended June 30, 2024, compared to $3.9 billion for the six months ended June 30, 2023, primarily due to an increase of $528 million in current year attritional losses and an increase of $94 million in current year catastrophe losses. The increase in current year attritional losses was mainly due to the impact of the increase in underlying exposures due to increased premiums earned. The current year catastrophe losses of $236 million for the six months ended June 30, 2024 related primarily to the 2024 Baltimore bridge collapse ($70 million), the 2024 Dubai floods ($40 million), the 2024 Germany floods ($40 million), the 2024 Brazil Floods ($35 million), and the 2024 Taiwan earthquake ($23 million). The $142 million of current year catastrophe losses for the six months ended June 30, 2023 related primarily to the 2023 Turkey earthquakes ($95 million) the 2023 New Zealand storms ($45 million), Typhoon Mawar ($12 million), the 2023 Italian floods ($10 million) and the 2023 second quarter U.S. storms ($10 million), partially offset by $30 million of reinsurance recoveries related to Hurricane Ian.

Catastrophe losses and loss expenses typically have a material effect on our incurred losses and LAE results and can vary significantly from period to period. Losses from natural catastrophes contributed 4.1 percentage points to the combined ratio for the three months ended June 30, 2024, compared with 0.8 percentage points in the corresponding period of 2023, and 3.2 percentage points to the combined ratio for the six months ended June 30, 2024, compared with 2.2 percentage points in the corresponding period of 2023. The Company has up to $350 million of catastrophe bond protection (“CAT Bond”) that attaches at a $48.1 billion Property Claims Services (“PCS”) Industry loss threshold. This recovery would be recognized on a pro-rata basis up to a $63.8 billion PCS Industry loss level. As a result of Hurricane Ian, PCS’s current industry estimate of $48.3 billion issued in June 2024 exceeds the attachment point. The current estimated recovery under the CAT Bond is not material.

Refer to Ratios section for loss ratio analysis discussion.

Commission, Brokerage, Taxes and Fees. Commission, brokerage, taxes and fees increased by 15.2% to $790 million for the three months ended June 30, 2024 compared to $686 million for the three months ended June 30, 2023. Commission, brokerage, taxes and fees increased by 16.7% to $1.6 billion for the six months ended June 30, 2024, compared to $1.3 billion for the six months ended June 30, 2023. The increases were primarily due to the impact of the

increase in premiums earned and changes in the mix of business. Refer to Ratios section for commission and brokerage ratio analysis discussion.

Other Underwriting Expenses. Other underwriting expenses were $234 million and $205 million for the three months ended June 30, 2024 and June 30, 2023, respectively. Other underwriting expenses were $458 million and $405 million for the six months ended June 30, 2024 and 2023, respectively. The increases in other underwriting expenses remained relative consistent with the growth in premium earned. Refer to Ratio section for other underwriting expense ratio analysis discussion.

Corporate Expenses. Corporate expenses, which are general operating expenses that are not allocated to segments, were $22 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and $44 million and $36 million for the six months ended June 30, 2024 and 2023, respectively. The increase in Corporate expenses for the three and six month periods ended June 30, 2024 are primarily due to information management related costs.

Interest, Fees and Bond Issue Cost Amortization Expense. Interest, fees and other bond amortization expense was $37 million and $33 million for the three months ended June 30, 2024 and 2023, respectively. Interest, fees and other bond amortization expense was $75 million and $65 million for the six months ended June 30, 2024 and 2023, respectively. The increases were mainly due to higher interest costs on the FHLBNY borrowing as a result of the rising interest rate environment. Interest expense was also impacted by the movements in the floating interest rate related to the Company’s long-term Subordinated Notes Issued 2007, which is reset quarterly per the note agreement. The floating rate was 7.97% as of June 30, 2024.

Income Tax Expense (Benefit). We had income tax expense of $108 million and $80 million for the three months ended June 30, 2024, and 2023, respectively. We had income tax expense of $207 million and $122 million for the six months ended June 30, 2024, and 2023, respectively. The period over period increase in 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 and net capital gains (losses), among jurisdictions with different tax rates.

With the assent of the governor on December 27, 2023, the Bermuda Corporate Income Tax Act of 2023 ( the “2023 Act”) became law. Under the 2023 Act, beginning in 2025, a 15% corporate income tax will be applicable to Bermuda businesses that are part of multinational enterprise groups with annual revenue of €750 million or more. Group’s Bermuda entities will be subject to the new corporate income tax. The Company has evaluated The 2023 Act and has recorded $578 million of net deferred income tax benefits as of December 31, 2023. The net deferred income tax benefits relate primarily to a default provision in the law that allows for an Economic Transition Adjustment (“ETA”). The ETA allowed companies to establish deferred tax assets or liabilities related to the revaluation of intangible assets, excluding goodwill, and their other assets and liabilities, based on fair value as of September 30, 2023.

On August 16, 2022, the Inflation Reduction Act of 2022 (“IRA”) was enacted. We have evaluated the tax provisions of the IRA, the most significant of which are the corporate alternative minimum tax and the share repurchase excise tax and do not expect the legislation to have a material impact on our results of operations.

Net Income (Loss).

Our net income was $724 million and $670 million for the three months ended June 30, 2024 and 2023, respectively. Our net income was $1.5 billion and $1.0 billion for the six months ended June 30, 2024 and 2023, 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 2.6 points to 90.3% for the three months ended June 30, 2024, compared to 87.7% for the three months ended June 30, 2023 and increased by 0.2 points to 89.6% for the six months ended June 30, 2024, compared to 89.4% for the six months ended June 30, 2023. The current year increase is primarily due to increased commission and brokerage expenses and higher catastrophe losses. Refer to analysis of combined ratio components below.

The loss ratio component increased by 2.3 points to 62.6% for the three months ended June 30, 2024, compared to 60.3% for the three months ended June 30, 2023 mainly due to a $124 million increase in catastrophe losses partially offset by the impact of changes in the mix of business. The loss ratio component increased by 0.1 points to 61.9% for the six

months ended June 30, 2024 compared to 61.8% six months ended June 30, 2023 primarily due to an increase of $94 million in current year catastrophe losses partially offset by the impact of changes in the mix of business.

The commission and brokerage ratio components increased to 21.4% for the three months ended June 30, 2024 compared to 21.1% for the three months ended June 30, 2023 and increased to 21.4% for the six months ended June 30, 2024 compared to 21.2% for the six months ended June 30, 2023. These changes were mainly due to changes in the mix of business.

The other underwriting expense ratios remained consistent at 6.3% for the three months ended June 30, 2024 and the three months ended June 30, 2023 and decreased to 6.2% for the six months ended June 30, 2024 compared to 6.4% for the six months ended June 30, 2023. The decrease for the six months comparative period was mainly due to higher earned premium base.

Shareholders’ Equity.

Shareholders’ equity increased by $1.0 billion to $14.2 billion at June 30, 2024 from $13.2 billion at December 31, 2023, principally as a result of $1.5 billion of net income, partially offset by $213 million of unrealized depreciation on the available for sale fixed maturity portfolio, net of tax, $163 million of shareholder dividends, $100 million of treasury share purchases and $38 million of net foreign currency translation adjustments.

Consolidated Investment Results

Net Investment Income.

Net investment income increased by 47.9% to $528 million for the three months ended June 30, 2024 compared with net investment income of $357 million for the three months ended June 30, 2023. The increase for the three months ended June 30, 2024 was primarily the result of an increase of $93 million in income from fixed maturity investments, an increase of $40 million in limited partnership income, an increase of $24 million in income from other alternative investments and an increase of $10 million in income from short-term investments. Net investment income increased by 59.7% to approximately $1.0 billion for the six months ended June 30, 2024, compared with investment income of $617 million for the six months ended June 30, 2023. The increase for the six months ended June 30, 2024 was primarily the result of an increase of $198 million of income from fixed maturity investments, an increase of $110 million in limited partnership income, an increase of $30 million from short-term investments and an increase of $22 million in income from other alternative investments. 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 results of future increases or decreases in the asset value.

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

			Three Months Ended June 30,												Six Months Ended June 30,
(Dollars in millions)			2024						2023						2024						2023
Fixed maturities			$	369					$	276					$	721					$	523
Equity securities			1						1						2						2
Short-term investments and cash			43						34						81						51
Other invested assets
Limited partnerships			94						53						148						38
Other			30						6						50						27
Gross investment income before adjustments			537						369						1,001						641
Funds held interest income (expense)			9						2						15						2
Gross investment income			545						371						1,016						643
Investment expenses			18						14						31						26
Net investment income			$	528					$	357					$	985					$	617

(Some amounts may not reconcile due to rounding.)

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

			Three Months Ended June 30,												Six Months Ended June 30,
			2024						2023						2024						2023
Annualized pre-tax yield on average cash and invested assets			5.3		%				4.2		%				5.1		%				3.7		%
Annualized after-tax yield on average cash and invested assets			4.6		%				3.6		%				4.4		%				3.2		%
Annualized return on invested assets			5.2		%				4.2		%				4.9		%				3.7		%

Net Gains (Losses) on Investments.

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

			Three Months Ended June 30,																		Six Months Ended June 30,
(Dollars in millions)			2024						2023						Variance						2024						2023						Variance
Realized gains (losses) from dispositions:
Fixed maturity securities - available for sale
Gains			$	16					$	7					$	9					$	26					$	17					9
Losses			(30)						(10)						(21)						(48)						(19)						(30)
Total			(15)						(3)						(11)						(22)						(2)						(20)
Equity securities
Gains			1						—						1						2						7						(5)
Losses			—						—						—						—						—						—
Total			—						—						—						1						7						(6)
Other Invested Assets
Gains			—						—						—						—						—						—
Losses			(1)						—						(1)						(1)						—						(1)
Total			(1)						—						(1)						(1)						—						(1)
Short-Term Investments
Gains			—						1						(1)						—						1						(1)
Losses			—						—						—						—						—						—
Total			—						—						(1)						—						1						(1)
Total net realized gains (losses) from dispositions
Gains			16						7						9						28						24						3
Losses			(32)						(10)						(22)						(50)						(19)						(31)
Total			(15)						(3)						(13)						(22)						5						(27)
Allowance for credit losses			4						—						4						6						(8)						14
Gains (losses) from fair value adjustments
Equity securities			(5)						8						(13)						(8)						12						(20)
Total			(5)						8						(13)						(8)						12						(20)
Total net gains (losses) on investments			$	(17)					$	5					$	(22)					$	(24)					$	10					$	(33)

(Some amounts may not reconcile due to rounding.)

Net gains (losses) on investments during the three months ended June 30, 2024 primarily relate to $15 million of losses due to the disposition of investments, $5 million of losses from fair value adjustments on equity securities, partially offset by a decrease to the allowance for credit losses of $4 million. The realized losses from dispositions of investments mainly related to the execution of a Company strategy to sell lower yielding investments in order to reinvest the proceeds at higher interest rates.

Net gains (losses) on investments during the six months ended June 30, 2024 primarily relate to $22 million of net losses due to the disposition of investments in fixed maturity securities, $8 million of losses from fair value adjustments on equity securities as a result of equity market deterioration, partially offset by a decrease to the allowance for credit losses of $6 million.

Segment Results.

The Company operates through two operating segments. 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., Bermuda, and Ireland offices, as well as, through branches in Canada, Singapore, the United Kingdom (“UK”) and Switzerland. The Insurance operation writes property and casualty insurance directly and through brokers, including for surplus lines, and general agents within the U.S., Bermuda, Canada, Europe, Singapore and South America through its offices in the U.S., Australia, Bermuda, Canada, Chile, Colombia, Mexico, Singapore, the UK, Ireland, and branches located in the UK, the Netherlands, France, Germany and Spain. 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 operating 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 2023, the Company revised the classification and presentation of certain products related to its accident and health business within the segment groupings. These products have been realigned from within the Reinsurance segment to the Insurance segment to appropriately reflect how the business segments are managed. These changes have been reflected retrospectively.

The Company does not review and evaluate the financial results of its operating segments based upon balance sheet data. Management generally monitors and evaluates the financial performance of these operating segments based upon their underwriting results. Underwriting results include earned premium less losses and loss adjustment expenses (“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.

Reinsurance.

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

			Three Months Ended June 30,																								Six Months Ended June 30,
(Dollars in millions)			2024						2023						Variance						% Change						2024						2023						Variance						% Change
Gross written premiums			$	3,209					$	2,747					$	462					16.8		%				$	6,385					$	5,368					$	1,017					18.9		%
Net written premiums			3,033						2,621						412						15.7		%				5,975						5,059						916						18.1		%
Premiums earned			$	2,731					$	2,364					$	367					15.5		%				$	5,459					$	4,590					$	870					19.0		%
Incurred losses and LAE			1,684						1,389						295						21.2		%				3,325						2,790						535						19.2		%
Commission and brokerage			672						579						93						16.2		%				1,343						1,135						208						18.4		%
Other underwriting expenses			72						61						10						16.5		%				142						124						18						14.3		%
Underwriting gain (loss)			$	303					$	335					$	(31)					(9.4)		%				$	649					$	540					$	109					20.1		%
																					Point Chg																								Point Chg
Loss ratio			61.7		%				58.8		%										2.9						60.9		%				60.8		%										0.1
Commission and brokerage ratio			24.6		%				24.5		%										0.1						24.6		%				24.7		%										(0.1)
Other underwriting expense ratio			2.6		%				2.6		%										—						2.6		%				2.7		%										(0.1)
Combined ratio			88.9		%				85.8		%										3.1						88.1		%				88.2		%										(0.1)

(NM, Not Meaningful)

(Some amounts may not reconcile due to rounding.)

Premiums. Gross written premiums increased by 16.8% to $3.2 billion for the three months ended June 30, 2024 from $2.7 billion for the three months ended June 30, 2023, primarily driven by property pro rata, property catastrophe excess of loss and casualty pro rata lines of business. Net written premiums increased by 15.7% to $3.0 billion for the three months ended June 30, 2024 compared to $2.6 billion for the three months ended June 30, 2023. The increase was consistent with the percentage increase in gross written premiums. Premiums earned generally reflect the portion of net premiums written that was recorded as revenues for the period as the exposure periods expire. Premiums earned increased by 15.5% to $2.7 billion for the three months ended June 30, 2024, compared to $2.4 billion for the three months ended June 30, 2023.

Gross written premiums increased by 18.9% to $6.4 billion for the six months ended June 30, 2024 from $5.4 billion for the six months ended June 30, 2023, primarily due to property pro rata, property catastrophe excess of loss and casualty pro rata lines of business. Net written premiums increased by 18.1% to $6.0 billion for the six months ended June 30, 2024 compared to $5.1 billion for the six months ended June 30, 2023. The increase was consistent with the percentage increase in gross written premiums. Premiums earned generally reflect the portion of net premiums written that was recorded as revenues for the period as the exposure periods expire. Premiums earned increased by 19.0% to $5.5 billion for the six months ended June 30, 2024, compared to $4.6 billion for the six months ended June 30, 2023.

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

			Three Months Ended June 30,
(Dollars in millions)			Current Year						Ratio %/ Pt Change						Prior Years						Ratio %/ Pt Change						Total Incurred						Ratio %/ Pt Change
2024
Attritional			$	1,547					56.7		%				$	—					—		%				1,547						56.7		%
Catastrophes			137						5.0		%				—						—		%				137						5.0		%
Total Segment			$	1,684					61.7		%				$	—					—		%				$	1,684					61.7		%
2023
Attritional			$	1,362					57.6		%				$	—					—		%				1,362						57.6		%
Catastrophes			27						1.2		%				—						—		%				27						1.2		%
Total Segment			$	1,389					58.8		%				$	—					—		%				$	1,389					58.8		%
Variance 2024/2023
Attritional			$	185					(1.0)		pts				$	—					—		pts				$	185					(1.0)		pts
Catastrophes			109						3.9		pts				—						—		pts				109						3.9		pts
Total Segment			$	295					2.9		pts				$	—					—		pts				$	295					2.9		pts

(Some amounts may not reconcile due to rounding.)

			Six Months Ended June 30,
(Dollars in millions)			Current Year						Ratio %/ Pt Change						Prior Years						Ratio %/ Pt Change						Total Incurred						Ratio %/ Pt Change
2024
Attritional			$	3,108					56.9		%				$	—					—		%				3,108						56.9		%
Catastrophes			217						4.0		%				—						—		%				217						4.0		%
Total Segment			$	3,325					60.9		%				$	—					—		%				$	3,325					60.9		%
2023
Attritional			$	2,650					57.7		%				$	—					—		%				2,650						57.7		%
Catastrophes			140						3.1		%				—						—		%				140						3.1		%
Total Segment			$	2,790					60.8		%				$	—					—		%				$	2,790					60.8		%
Variance 2024/2023
Attritional			$	459					(0.8)		pts				$	—					—		pts				$	459					(0.8)		pts
Catastrophes			76						0.9		pts				—						—		pts				76						0.9		pts
Total Segment			$	535					0.1		pts				$	—					—		pts				$	535					0.2		pts

(Some amounts may not reconcile due to rounding.)

Incurred losses increased by 21.2% to $1.7 billion for the three months ended June 30, 2024, compared to $1.4 billion for the three months ended June 30, 2023. The increase was primarily due to an increase of $185 million in current year attritional losses and an increase of $109 million in current year catastrophe losses. The increase in current year attritional losses was mainly related to the impact of the increase in premiums earned. The current year catastrophe losses of $137 million for the three months ended June 30, 2024 related primarily to the 2024 Dubai floods ($40 million), the 2024 Germany floods ($39 million), the 2024 Brazil Floods ($35 million), and the 2024 Taiwan earthquake ($21 million). The $27 million of current year catastrophe losses for the three months ended June 30, 2023 related primarily to the 2023 Turkey earthquakes ($20 million), Typhoon Mawar ($12 million), the 2023 Italian floods ($10 million), the 2023 second quarter U.S. storms ($10 million) and the 2023 New Zealand storms ($5 million), partially offset by $30 million of reinsurance recoveries related to Hurricane Ian.

Incurred losses increased by 19.2% to $3.3 billion for the six months ended June 30, 2024, compared to $2.8 billion for the six months ended June 30, 2023. The increase was primarily due to an increase of $459 million in current year attritional losses and an increase of $76 million in current year catastrophe losses. The increase in current year attritional losses was mainly related to the impact of the increase in premiums earned. The current year catastrophe losses of $217 million for the six months ended June 30, 2024 related primarily to the 2024 Baltimore bridge collapse ($65 million), the

2024 Dubai floods ($40 million), the 2024 Germany floods ($39 million), the 2024 Brazil Floods ($35 million), and the 2024 Taiwan earthquake ($21 million). The $140 million of current year catastrophe losses for the six months ended June 30, 2023 related primarily to the 2023 Turkey earthquakes ($95 million) the 2023 New Zealand storms ($43 million), Typhoon Mawar ($12 million), the 2023 Italian floods ($10 million) and the 2023 second quarter U.S. storms ($10 million), partially offset by $30 million of reinsurance recoveries related to Hurricane Ian.

Segment Expenses. Commission and brokerage expense increased by 16.2% to $672 million for the three months ended June 30, 2024, compared to $579 million for the three months ended June 30, 2023. Commission and brokerage expense increased by 18.4% to $1.3 billion for the six months ended June 30, 2024, compared to $1.1 billion for the six months ended June 30, 2023. The increases were mainly due to the impact of the increase in premiums earned and changes in the mix of business reflecting higher growth towards the Pro Rata lines of business.

Segment other underwriting expenses increased to $72 million for the three months ended June 30, 2024 from $61 million for the three months ended June 30, 2023. Segment other underwriting expenses increased to $142 million for the six months ended June 30, 2024, compared to $124 million for the six months ended June 30, 2023. The increases were mainly due to increased expenditures supporting the increased premium volume of the segment.

Insurance.

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

			Three Months Ended June 30,																								Six Months Ended June 30,
(Dollars in millions)			2024						2023						Variance						% Change						2024						2023						Variance						% Change
Gross written premiums			$	1,515					$	1,433					$	82					5.7		%				$	2,752					$	2,555					$	196					7.7		%
Net written premiums			1,051						1,053						(2)						(0.2)		%				2,009						1,944						65						3.3		%
Premiums earned			$	962					$	888					$	74					8.4		%				$	1,885					$	1,762					$	123					7.0		%
Incurred losses and LAE			628						572						56						9.8		%				1,223						1,137						87						7.6		%
Commission and brokerage			117						107						10						9.8		%				228						212						16						7.5		%
Other underwriting expenses			162						143						19						13.2		%				316						280						35						12.6		%
Underwriting gain (loss)			$	54					$	66					$	(11)					(17.3)		%				$	118					$	133					$	(15)					(11.1)		%
																					Point Chg																								Point Chg
Loss ratio			65.3		%				64.4		%										0.9						64.9		%				64.5		%										0.4
Commission and brokerage ratio			12.2		%				12.1		%										0.1						12.1		%				12.0		%										0.1
Other underwriting expense ratio			16.9		%				16.2		%										0.7						16.7		%				15.9		%										0.8
Combined ratio			94.4		%				92.6		%										1.8						93.7		%				92.4		%										1.3

(NM not meaningful)

(Some amounts may not reconcile due to rounding.)

Premiums. Gross written premiums increased by 5.7% to $1.5 billion for the three months ended June 30, 2024 compared to $1.4 billion for the three months ended June 30, 2023. The increase in insurance premiums was primarily due to increases in property/short tail business, professional liability business and other specialty lines of business partially offset by reductions in accident and health and workers’ compensation lines of business. Net written premiums decreased by 0.2% to $1.1 billion for the three months ended June 30, 2024, compared to $1.1 billion for the three months ended June 30, 2023. The lower percentage change in net written premiums compared to gross written premiums is due to lower net retention resulting from changes in the mix of business and strategic portfolio actions executed on the accident and health and workers’ compensation lines of business. Premiums earned increased by 8.4% to $962 million for the three months ended June 30, 2024, compared to $888 million for the three months ended June 30, 2023. The increase in premiums earned was driven by the expansion of international business offset by strategic portfolio actions executed on the accident and health line of business.

Gross written premiums increased by 7.7% to $2.8 billion for the six months ended June 30, 2024, compared to $2.6 billion for the six months ended June 30, 2023. The increase in insurance premiums was primarily due to increases in property/short tail business, professional liability business and other specialty lines of business partially offset by reductions in accident and health and workers’ compensation lines of business. Net written premiums increased by 3.3% to $2.0 billion for the six months ended June 30, 2024, compared to $1.9 billion for the six months ended June 30, 2023. The lower percentage change in net written premiums compared to gross written premiums was mainly due to lower net

retention resulting from changes in the mix of business and strategic portfolio actions on the accident and health and workers’ compensation lines of business. Premiums earned increased by 7.0% to $1.9 billion for the six months ended June 30, 2024, compared to $1.8 billion for the six months ended June 30, 2023. The change in premiums earned relative to net written premiums is the result of timing; premiums are earned ratably over the coverage period, whereas written premiums are recorded at the initiation of the coverage period.

Incurred Losses and LAE. The following tables present the incurred losses and LAE for the Insurance segment for the periods indicated:

			Three Months Ended June 30,
(Dollars in millions)			Current Year						Ratio %/ Pt Change						Prior Years						Ratio %/ Pt Change						Total Incurred						Ratio %/ Pt Change
2024
Attritional			$	613					63.7		%				$	—					—		%				613						63.7		%
Catastrophes			15						1.5		%				—						—		%				15						1.5		%
Total Segment			$	628					65.3		%				$	—					—		%				$	628					65.3		%
2023
Attritional			$	572					64.4		%				$	—					—		%				572						64.4		%
Catastrophes			—						—		%				—						—		%				—						—		%
Total Segment			$	572					64.4		%				$	—					—		%				$	572					64.4		%
Variance 2024/2023
Attritional			$	41					(0.7)		pts				$	—					—		pts				$	41					(0.7)		pts
Catastrophes			15						1.5		pts				—						—		pts				15						1.5		pts
Total Segment			$	56					0.9		pts				$	—					—		pts				$	56					0.9		pts

			Six Months Ended June 30,
(Dollars in millions)			Current Year						Ratio %/ Pt Change						Prior Years						Ratio %/ Pt Change						Total Incurred						Ratio %/ Pt Change
2024
Attritional			$	1,204					63.8		%				$	—					—		%				1,204						63.8		%
Catastrophes			20						1.0		%				—						—		%				20						1.0		%
Total Segment			$	1,223					64.9		%				$	—					—		%				$	1,223					64.9		%
2023
Attritional			$	1,135					64.4		%				$	—					—		%				1,135						64.4		%
Catastrophes			2						0.1		%				—						—		%				2						0.1		%
Total Segment			$	1,137					64.5		%				$	—					—		%				$	1,137					64.5		%
Variance 2024/2023
Attritional			$	69					(0.6)		pts				$	—					—		pts				69						(0.6)		pts
Catastrophes			18						0.9		pts				—						—		pts				18						0.9		pts
Total Segment			$	87					0.4		pts				$	—					—		pts				$	87					0.4		pts

(Some amounts may not reconcile due to rounding.)

Incurred losses and LAE increased by 9.8% to $628 million for the three months ended June 30, 2024, compared to $572 million for the three months ended June 30, 2023. The increase was mainly due to an increase of $41 million in current year attritional losses and an increase of $15 million in current year catastrophe losses. The increase in current year attritional losses was primarily due to the impact of the increase in premiums earned and changes in mix of business. The $15 million of current year catastrophe losses for the three months ended June 30, 2024 related primarily to the 2024 second quarter U.S. convective storms ($12 million), the 2024 Taiwan earthquake ($2 million) and the 2024 Germany floods ($1 million). There were no current year catastrophe losses for the three months ended June 30, 2023.

Incurred losses and LAE increased by 7.6% to $1.2 billion for the six months ended June 30, 2024, compared to $1.1 billion for the six months ended June 30, 2023. The increase was mainly due to an increase of $69 million in current year attritional losses, partially offset by an increase in current year catastrophe losses of $18 million. The increase in current

year attritional losses was primarily due to the impact of the increase in premiums earned and changes in mix of business. The current year catastrophe losses of $20 million for the six months ended June 30, 2024 related primarily to the 2024 second quarter U.S. convective storms ($12 million), the 2024 Baltimore bridge collapse ($4 million), the 2024 Taiwan earthquake ($2 million) and the 2024 Germany floods ($1 million). The $2 million of current year catastrophe losses for the six months ended June 30, 2023 related to the 2023 New Zealand storms.

Segment Expenses. Commission and brokerage expenses increased by 9.8% to $117 million for the three months ended June 30, 2024 compared to $107 million for the three months ended June 30, 2023. Commission and brokerage expenses increased by 7.5% to $228 million for the six months ended June 30, 2024 compared to $212 million for the six months ended June 30, 2023. The increases were mainly due to the impact of the increase in premiums earned.

Segment other underwriting expenses increased to $162 million for the three months ended June 30, 2024, compared to $143 million for the three months ended June 30, 2023. Segment other underwriting expenses increased to $316 million for the six months ended June 30, 2024, compared to $280 million for the six months ended June 30, 2023. These increases were mainly due to the impact of the increase in premiums earned and increased expenses related to the continued build out of the insurance business, including an expansion of the international insurance platform.

FINANCIAL CONDITION

Investments. Total investments were $37.5 billion at June 30, 2024, an increase of $1.8 billion compared to $35.7 billion at December 31, 2023. The rise in investments was primarily related to an increase in fixed maturities - available for sale due to an overall net purchase of $1.7 billion of fixed maturities - available for sale during the six months ended June 30, 2024.

The Company’s limited partnership investments are comprised of limited partnerships that invest in private equity, private credit and private real estate. Generally, the limited partnerships are reported on a month or quarter lag. We receive annual audited financial statements for all the limited partnerships, which are prepared using fair value accounting in accordance with FASB guidance. For the quarterly reports, the Company reviews the financial reports for any unusual changes in carrying value. If the Company becomes aware of a significant decline in value during the lag reporting period, the loss will be recorded in the period in which the Company identifies the decline.

The table below summarizes the composition and characteristics of our investment portfolio for the periods indicated.

			At June 30, 2024						At December 31, 2023
Fixed income portfolio duration (years)			3.4						3.3
Fixed income composite credit quality			AA-						AA-

Reinsurance Recoverables.

Reinsurance recoverables for both paid and unpaid losses totaled $2.4 billion and $2.3 billion at June 30, 2024 and December 31, 2023, respectively. At June 30, 2024, $384 million, or 16.0%, was receivable from Mt. Logan Re collateralized segregated accounts; $267 million, or 11.1%, was receivable from Munich Reinsurance America, Inc. and $175 million, or 7.3% was receivable from Endurance Specialty Holdings, Ltd. No other retrocessionaire accounted for more than 5% of our recoverables.

Loss and LAE Reserves. Gross loss and LAE reserves totaled $25.9 billion and $24.6 billion at June 30, 2024 and December 31, 2023, respectively.

The following tables summarize gross outstanding loss and LAE reserves by segment, classified by case reserves and IBNR reserves, for the periods indicated.

			At June 30, 2024
(Dollars in millions)			Case Reserves						IBNR Reserves						Total Reserves						% of Total
Reinsurance			$	6,349					$	12,027					$	18,375					71.1		%
Insurance			2,107						5,145						7,252						28.1		%
Total excluding A&E			8,456						17,172						25,628						99.1		%
A&E			155						71						226						0.9		%
Total including A&E			$	8,611					$	17,243					$	25,853					100.0		%

(Some amounts may not reconcile due to rounding.)

			At December 31, 2023
(Dollars in millions)			Case Reserves						IBNR Reserves						Total Reserves						% of Total
Reinsurance			$	6,355					$	11,051					$	17,406					70.7		%
Insurance			2,027						4,924						6,952						28.3		%
Total excluding A&E			8,383						15,975						24,357						99.0		%
A&E			159						88						246						1.0		%
Total including A&E			$	8,541					$	16,063					$	24,604					100.0		%

(Some amounts may not reconcile due to rounding.)

Changes in premiums earned and business mix, reserve re-estimations, catastrophe losses and changes in catastrophe loss reserves and claim settlement activity all impact loss and LAE reserves by segment and in total.

Our carried loss and LAE reserves represent management’s best estimate of our ultimate liability for unpaid claims. We continuously re-evaluate our reserves, including re-estimates of prior period reserves, taking into consideration all available information and, in particular, newly reported loss and claim experience. Changes in reserves resulting from such re-evaluations are reflected in incurred losses in the period when the re-evaluation is made. Our analytical methods and processes operate at multiple levels, including individual contracts, groupings of like contracts, classes and lines of business, internal business units, segments, accident years, legal entities, and in the aggregate. In order to set appropriate reserves, we make qualitative and quantitative analyses and judgments at these various levels. We utilize actuarial science, business expertise and management judgment in a manner intended to ensure the accuracy and consistency of our reserving practices. Management’s best estimate is developed through collaboration with actuarial, underwriting, claims, legal and finance departments and culminates with the input of reserve committees. Each segment reserve committee includes the participation of the relevant parties from actuarial, finance, claims and segment senior management and has the responsibility for recommending and approving management’s best estimate. Reserves are further reviewed by Everest’s Chief Reserving Actuary and senior management. The objective of this process is to determine a single best estimate viewed by management to be the best estimate of its ultimate loss liability. Nevertheless, our reserves are estimates and are subject to variation, which may be significant.

There can be no assurance that reserves for, and losses from, claim obligations will not increase in the future, possibly by a material amount. However, we believe that our existing reserves and reserving methodologies lessen the probability that any such increase would have a material adverse effect on our financial condition, results of operations or cash flows.

Asbestos and Environmental Exposures. Asbestos and Environmental (“A&E”) exposures represent a separate exposure group for monitoring and evaluating reserve adequacy. The following table summarizes the outstanding loss reserves with respect to A&E reserves on both a gross and net of retrocessions basis for the periods indicated.

			At June 30,						At December 31,
(Dollars in millions)			2024						2023
Gross reserves			$	226					$	247
Ceded reserves			(10)						(15)
Net reserves			$	215					$	232

(Some amounts may not reconcile due to rounding.)

With respect to asbestos only, at June 30, 2024, we had net asbestos loss reserves of $196 million, or 90.8%, of total net A&E reserves, all of which was for assumed business.

Ultimate loss projections for A&E liabilities cannot be accomplished using standard actuarial techniques. We believe that our A&E reserves represent management’s best estimate of the ultimate liability; however, there can be no assurance that ultimate loss payments will not exceed such reserves, perhaps by a significant amount.

Industry analysts use the “survival ratio” to compare the A&E reserves among companies with such liabilities. The survival ratio is typically calculated by dividing a company’s current net reserves by the three-year average of annual paid losses. Hence, the survival ratio equals the number of years that it would take to exhaust the current reserves if future loss payments were to continue at historical levels. Using this measurement, our net three-year asbestos survival ratio was 6.5 years at June 30, 2024. These metrics can be skewed by individual large settlements occurring in the prior three years and therefore may not be indicative of the timing of future payments.

LIQUIDITY AND CAPITAL RESOURCES

Capital. Shareholders’ equity at June 30, 2024 and December 31, 2023 was $14.2 billion and $13.2 billion, respectively. Management’s objective in managing capital is to ensure that the Company’s 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 two main operating companies, Bermuda Re and Everest Re, are regulated by the Bermuda Monetary Authority and the State of Delaware’s Department of Insurance, respectively. Both regulatory bodies have their 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, including restrictions on business activity and the payment of dividends to their parent companies.

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

			Bermuda Re (1)												Everest Re (2)
			At December 31,												At December 31,
(Dollars in millions)			2023						2022						2023						2022
Regulatory targeted capital			$	2,669					$	2,217					$	4,242					$	3,353
Actual capital			$	3,711					$	2,759					$	6,963					$	5,553

(1)Regulatory targeted capital represents the target capital level from the applicable year's Bermuda Solvency Capital Requirement calculation.

(2)Regulatory targeted capital represents 200% of the Risk Based Capital 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 and equity markets as a result of our financial strength, as evidenced by the financial strength ratings as 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.

As part of our capital strategy, we model our potential exposure to catastrophe losses arising from a single event. Projected catastrophe losses are generally summarized in terms of probable maximum loss (“PML”). A full discussion on PMLs is included in our December 31, 2023 Form 10-K filing in Part 2, Item 7 (MD&A) in Liquidity and Capital Resources. We focus on the projected net economic loss from a catastrophe in a given zone as compared to our shareholders’ equity. Economic loss is the PML exposure, net of third party reinsurance, reduced by estimated reinstatement premiums to renew coverage and estimated income taxes. In our December 31, 2023 Form 10-K, we reported that our projected net economic loss from our largest projected 100-year event represented approximately 7.8% of our December 31, 2023 shareholders’ equity. During the first half of 2024, our net exposure to catastrophes has changed due to the market conditions and business decisions. As a result, our projected net economic loss from our largest 100-year event in a given zone represents approximately 9.0% of our June 30, 2024 shareholders’ equity.

The table below reflects the Company’s PML exposure, net of third party reinsurance at various return periods for its top zones/perils (as ranked by largest 1 in 100 year economic loss) based on projection data as of July 1, 2024.

Return Periods (in years)			1 in 20						1 in 50						1 in 100						1 in 250						1 in 500
Exceeding Probability			5.0%						2.0%						1.0%						0.4%						0.2%
(Dollars in millions)
Zone/ Peril
Southeast U.S., Wind			$	866					$	1,338					$	1,865					$	2,398					$	2,628
California, Earthquake			203						957						1,494						2,216						2,553
Texas Wind			196						491						858						1,575						2,208

The projected economic losses, defined as PML exposures, net of third party reinsurance, reinstatement premiums and estimated income taxes, for the top zones/perils scheduled are as follows:

Return Periods (in years)			1 in 20						1 in 50						1 in 100						1 in 250						1 in 500
Exceeding Probability			5.0%						2.0%						1.0%						0.4%						0.2%
(Dollars in millions)
Zone/ Peril
Southeast U.S., Wind			$	593					$	918					$	1,270					$	1,646					$	1,817
California, Earthquake			161						691						1,066						1,596						1,852
Texas Wind			146						354						608						1,096						1,524

For the six months ended June 30, 2024, we repurchased 264,009 of our shares at a cost of $100 million in the open market. We paid $163 million in dividends to adjust our capital position and enhance long-term expected returns to our shareholders. As of December 31, 2023, we repurchased no shares in the open market and paid $288 million in dividends. On May 22, 2020, our existing Board authorization to purchase up to 30 million of our shares was amended to authorize the purchase of up to 32 million shares. As of June 30, 2024, we had repurchased 31.0 million shares under this authorization. During the second quarter of 2024, the Company’s Board of Directors declared an increase in the quarterly common stock dividend from $1.75 to $2.00 per share. The increase applied to the common stock dividend paid on June 14, 2024 for holders of record as of May 29, 2024. We paid $86 million in dividends during the second quarter 2024.

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.

On May 19, 2023, the Company completed the public offering of 4,140,000 common shares, which includes full exercise of the underwriters’ option to purchase an additional 540,000 common shares, at a public offering price of $360.00 per share. Total net proceeds from the public offering were $1,445 million, after underwriting discount and expenses. The Company intends to use the net proceeds from this offering for long-term reinsurance opportunity and continuing build out of the global insurance business.

Liquidity. 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, which disbursements generally take 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 $2.4 billion and $2.2 billion for the six months ended June 30, 2024 and 2023, respectively. Additionally, these cash flows reflected net catastrophe loss payments of $365 million and $458 million for the six months ended June 30, 2024 and 2023, respectively, and net tax payments of $203 million and $73 million for the six months ended June 30, 2024 and 2023, 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 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 June 30, 2024 and December 31, 2023, we held cash and short-term investments of $4.0 billion and $3.6 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 June 30, 2024, we had $1.4 billion of available for sale fixed maturity securities maturing within one year or less, $7.3 billion maturing within one to five years and $8.4 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 June 30, 2024, we had $1.1 billion of net pre-tax unrealized depreciation related to fixed maturity - available for sale securities, comprised of $1.2 billion of pre-tax unrealized depreciation and $188 million of pre-tax unrealized appreciation.

Management generally expects annual positive cash flow from operations, which reflects the strength of overall pricing. However, given 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 also may receive payments under the catastrophe bond program and the Mt. Logan Re collateralized reinsurance arrangement.

In addition to our cash flows from operations and liquid investments, we also have multiple active credit facilities that provide commitments of up to $1.7 billion of collateralized standby letters of credit to support business written by our Bermuda operating subsidiaries. In addition, the Company has the ability to request access to an additional $240 million of uncommitted credit facilities, which would require approval from the applicable lender. There is no guarantee the uncommitted capacity will be available to us on a future date. See Note 7 – Credit Facilities for further details.

Market Sensitive Instruments.

The SEC’s 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.

Interest Rate Risk. Our $39.1 billion investment portfolio at June 30, 2024 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, including short-term investments, from a change in market interest rates. In a declining interest rate environment, interest rate risk includes prepayment risk on the $6.6 billion of mortgage-backed securities in the $29.8 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 market value fluctuations and after-tax unrealized appreciation on our fixed maturity portfolio (including $2.5 billion of short-term investments) for the period indicated based on upward and downward parallel and immediate 100 and 200 basis point shifts in interest rates. For legal entities with a U.S. dollar functional currency, this modeling was performed on each security individually. To generate appropriate price estimates on mortgage-backed securities, changes in prepayment expectations under different interest rate environments were taken into account. For legal entities with a non-U.S. dollar functional currency, the effective duration of the involved portfolio of securities was used as a proxy for the market value change under the various interest rate change scenarios.

			Impact of Interest Rate Shift in Basis Points At June 30, 2024
			-200						-100						0						100						200
(Dollars in millions)
Total Fair Value			$	34,490					$	33,386					$	32,283					$	31,179					$	30,075
Fair Value Change from Base (%)			6.8		%				3.4		%				—		%				(3.4)		%				(6.8)		%
Change in Unrealized Appreciation
After-tax from Base ($)			$	1,899					$	950					$	—					$	(950)					$	(1,899)

We had $25.9 billion and $24.6 billion of gross reserves for losses and LAE as of June 30, 2024 and December 31, 2023, 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 the opposite of the interest rate impacts on the fair value of investments. 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 of approximately 3.9 years, which is reasonably consistent with our fixed income portfolio. If we were to discount our loss and LAE reserves, net of ceded reserves, the discount would be approximately $4.6 billion resulting in a discounted reserve balance of approximately $19.2 billion, representing approximately 59.3% of the value of the fixed maturity investment portfolio funds.

Foreign Currency Risk. 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./Bermuda operations maintains capital in the currency of the country of its geographic location consistent with local regulatory guidelines. Each non-U.S. operation 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 non-U.S. operations are the Canadian Dollar, the Singapore Dollar, the British Pound Sterling and the Euro. We mitigate foreign exchange exposure by generally matching the currency and duration of our assets to our corresponding operating liabilities. In accordance with FASB 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.