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

Overview.

Everest is a global underwriting leader providing best-in-class property, casualty and specialty reinsurance and insurance solutions. As part of the Standard & Poor’s (“S&P”) 500 Index, we are a leading financial services institution focused on value creation for our shareholders while diversifying our portfolio and geographic presence. Through our direct and indirect subsidiaries operating in the U.S. and internationally, we serve a diverse group of clients worldwide, providing what we believe are extensive product and distribution capabilities, a strong balance sheet, an innovative culture and access to world-class talent.

As a global leader with a 50-year track record, we are a preferred Reinsurance partner in the markets we serve, and with our growing Insurance franchise we strive to deliver consistent value to all our stakeholders. We continue to grow and develop our Insurance business, investing in our global platform and strengthening our portfolio and its potential to deliver on our customer promise.

During 2024, we formed a new “Other” segment, primarily comprised of 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. These segment presentation changes have been reflected retrospectively. The Company will continue to have two reportable segments that actively sell products, Reinsurance and Insurance, consistent with how the on-going business is managed. See Note 6 of the Notes to the Consolidated Financial Statements for a summary of segment results.

The following is a discussion of our results of operations, financial condition and liquidity and capital resources for the three months ended March 31, 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.

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 March 31,												Percentage Increase/ (Decrease)
(Dollars in millions)			2025						2024
Gross written premiums			$	4,391					$	4,411					(0.5)		%
Net written premiums			3,735						3,900						(4.2)		%
REVENUES:
Premiums earned			$	3,852					$	3,652					5.5		%
Net investment income			491						457						7.5		%
Net gains (losses) on investments			(7)						(7)						2.4		%
Other income (expense)			(73)						31						NM
Total revenues			4,263						4,133						3.1		%
CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses			2,893						2,237						29.4		%
Commission, brokerage, taxes and fees			824						782						5.4		%
Other underwriting expenses			238						224						6.4		%
Corporate expenses			21						22						(3.8)		%
Interest, fees and bond issue cost amortization expense			38						37						1.2		%
Total claims and expenses			4,015						3,302						21.6		%
INCOME (LOSS) BEFORE TAXES			248						832						(70.1)		%
Income tax expense (benefit)			39						99						(61.2)		%
NET INCOME (LOSS)			$	210					$	733					(71.4)		%
RATIOS:															Point Change
Loss ratio			75.1		%				61.3		%				13.8
Commission and brokerage ratio			21.4		%				21.4		%				—
Other underwriting expense ratio			6.2		%				6.1		%				0.1
Combined ratio			102.7		%				88.8		%				13.9

			At March 31,						At December 31,						Percentage Increase/ (Decrease)
(Dollars in millions, except per share amounts)			2025						2024
Balance sheet data:
Total investments and cash			$	42,628					$	41,531					2.6		%
Total assets			58,132						56,341						3.2		%
Reserve for losses and loss adjustment expenses			31,512						29,889						5.4		%
Total debt			3,587						3,587						—		%
Total liabilities			43,993						42,466						3.6		%
Shareholders' equity			14,140						13,875						1.9		%
Book value per share			332.39						322.97						2.9		%

(NM, not meaningful)

(Some amounts may not reconcile due to rounding.)

Revenues.

Premiums. Gross written premiums decreased by 0.5% to $4.4 billion for the three months ended March 31, 2025, compared to $4.4 billion for the three months ended March 31, 2024, reflecting a $49 million, or 63.8%, decrease in business within the Other segment and a $15 million, or 1.3%, decrease in our insurance business, partially offset by a $44 million, or 1.4%, increase in our reinsurance business. The decrease in Other premiums was due to the lines of business included in this segment primarily being in run-off, except for a limited number of renewed and new policies

written on the Company's paper by the purchaser of the sports and leisure business sold in October 2024, for a finite period of time post-closing. The decrease in insurance premiums was primarily due to portfolio actions taken on North America casualty lines and workers’ compensation lines, partially offset by an increase in property/short tail business and other specialty business. The increase in reinsurance premiums was primarily due to property catastrophe excess of loss business and property pro rata business.

Net written premiums decreased by 4.2% to $3.7 billion for the three months ended March 31, 2025, compared to $3.9 billion for the three months ended March 31, 2024. The larger percentage decrease in net written premiums compared to the percentage decrease in gross written premiums was mainly due to higher cessions of the Company’s catastrophe excess of loss contracts to Mt. Logan Re, Ltd. (“Mt. Logan Re”).

Premiums earned increased by 5.5% to $3.9 billion during the three months ended March 31, 2025, compared to $3.7 billion during the three months ended March 31, 2024. 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 generally recorded at the initiation of the coverage period.

Other Income (Expense). We recorded other expense of $73 million and other income of $31 million for the three months ended March 31, 2025 and 2024, respectively. The change was primarily the result of fluctuations in foreign currency exchange rates. We recognized foreign currency exchange expense of $74 million for the three months ended March 31, 2025 and foreign currency exchange income of $32 million for the three months ended March 31, 2024.

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 (“LAE”). The following tables present our incurred losses and LAE for the periods indicated.

			Three Months Ended March 31,
(Dollars in millions)			Current Year						Ratio %/ Pt Change						Prior Years						Ratio %/ Pt Change						Total Incurred						Ratio %/ Pt Change
2025
Attritional			$	2,359					61.3		%				$	—					—		%				$	2,359					61.3		%
Catastrophes			534						13.9		%				—						—		%				534						13.9		%
Total			$	2,893					75.1		%				$	—					—		%				$	2,893					75.1		%
2024
Attritional			$	2,152					58.9		%				$	—					—		%				$	2,152					58.9		%
Catastrophes			85						2.3		%				—						—		%				85						2.3		%
Total			$	2,237					61.3		%				$	—					—		%				$	2,237					61.3		%
Variance 2025/2024
Attritional			$	208					2.3		pts				$	—					—		pts				$	208					2.3		pts
Catastrophes			449						11.5		pts				—						—		pts				449						11.5		pts
Total			$	657					13.8		pts				$	—					—		pts				$	657					13.8		pts

(Some amounts may not reconcile due to rounding.)

Incurred losses and LAE increased by 29.4% to $2.9 billion for the three months ended March 31, 2025, compared to $2.2 billion for the three months ended March 31, 2024, primarily due to an increase of $208 million in current year attritional losses and an increase of $449 million in current year catastrophe losses. The increase in current year attritional losses was mainly due to $83 million of losses from the Washington D.C. aviation accident as well as the impact of the increase in underlying exposures, due to increased premiums earned. The current year catastrophe losses of $534 million for the three months ended March 31, 2025 related primarily to the 2025 Southern California wildfires ($512 million) and the Myanmar earthquake ($22 million). The $85 million of current year catastrophe losses for the three months ended March 31, 2024 related primarily to the 2024 Baltimore bridge collapse ($70 million) and the 2024 U.S. East Coast convective storms ($15 million).

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 and man-made catastrophes contributed 13.9 percentage points to the combined ratio for the three months ended March 31, 2025, compared with 2.3 percentage points for the three months ended March 31, 2024.

Commission, Brokerage, Taxes and Fees. Commission, brokerage, taxes and fees increased by 5.4% to $824 million for the three months ended March 31, 2025, compared to $782 million for the three months ended March 31, 2024. The increase was primarily due to the impact of the increase in premiums earned and changes in the mix of business.

Other Underwriting Expenses. Other underwriting expenses were $238 million and $224 million for the three months ended March 31, 2025 and March 31, 2024, respectively. The increase in other underwriting expenses was mainly due to the impact of the increase in premiums earned as well as the continued build out of our insurance operations, including an expansion of the international insurance platform.

Corporate Expenses. Corporate expenses, which are general operating expenses that are not allocated to segments, remained relatively consistent at $21 million and $22 million for the three months ended March 31, 2025 and 2024, respectively.

Interest, Fees and Bond Issue Cost Amortization Expense. Interest, fees and other bond amortization expense was $38 million and $37 million for the three months ended March 31, 2025 and 2024, respectively. Interest expense was mainly impacted by the movement in the floating interest rate related to the Company’s long-term subordinated notes, which is reset quarterly per the note agreement, as well as variable interest rate costs on borrowings from FHLBNY.

Income Tax Expense (Benefit). Income tax expense was $39 million and $99 million for the three months ended March 31, 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 and net capital gains (losses), among jurisdictions with different tax rates.

On December 27, 2023, the Government of Bermuda enacted the Corporate Income Tax Act 2023 (“The 2023 Act”), which applies a 15% corporate income tax to certain Bermuda businesses in fiscal years beginning on or after January 1, 2025. The 2023 Act includes a provision referred to as “The Economic Transition Adjustment”, which is intended to provide a fair and equitable transition into the new tax regime, and results in a deferred tax benefit for the Company. However, on January 15, 2025, the Organisation for Economic Co-operation and Development issued Administrative Guidance related to “deferred tax assets arising from tax benefits provided by General Government” whereby it has restricted the utilization of those deferred tax benefits against the computation of its Pillar Two Global Minimum Taxes to approximately 20% of the originally calculated amounts and only for a grace period of two years through 2026. If the Bermuda Ministry of Finance amends The 2023 Act in response to this guidance, the exact impact of any such amendments is uncertain but there is a risk that it results in a reduction in the Company's Deferred Tax Assets.

Net Income (Loss).

Our net income was $210 million and $733 million for the three months ended March 31, 2025 and 2024, respectively. The period over period decrease in net income was primarily driven by the financial component fluctuations explained above.

Ratios.

Our combined ratio increased by 13.9 points to 102.7% for the three months ended March 31, 2025, compared to 88.8% for the three months ended March 31, 2024. The current year increase is primarily due to higher catastrophe losses and higher attritional losses in 2025. For further details, please refer to the analysis of combined ratio components below.

The loss ratio component increased by 13.8 points to 75.1% for the three months ended March 31, 2025, compared to 61.3% for the three months ended March 31, 2024 mainly due to a $449 million increase in catastrophe losses and a $208 million increase in attritional losses which was largely attributable to $83 million in losses from the Washington D.C. aviation accident as well as impact of the increase in underlying exposures, due to increased premiums earned.

The commission and brokerage ratio components remained consistent at 21.4% for both the three months ended March 31, 2025 and the three months ended March 31, 2024.

The other underwriting expense ratios slightly increased to 6.2% for the three months ended March 31, 2025, compared to 6.1% for the three months ended March 31, 2024.

Shareholders’ Equity.

Shareholders’ equity increased by $264 million to $14.1 billion at March 31, 2025 from $13.9 billion at December 31, 2024, principally as a result of $289 million of unrealized appreciation on available for sale fixed maturity portfolio net of tax, $210 million of net income and $64 million of net foreign currency translation adjustments, partially offset by $200 million of treasury share purchases and $85 million of shareholder dividends.

Consolidated Investment Results

Net Investment Income.

Net investment income increased by 7.5% to $491 million for the three months ended March 31, 2025, compared with net investment income of $457 million for the three months ended March 31, 2024. The increase for the three months ended March 31, 2025 was primarily the result of an increase of $34 million in income from fixed maturity investments, an increase of $11 million in short-term investments and an increase of $10 million in income from other invested assets, partially offset by a decline of $30 million in limited partnership income. The limited partnership income primarily reflects changes in their 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 March 31,
(Dollars in millions)			2025						2024
Fixed maturities			$	386					$	352
Equity securities			1						1
Short-term investments and cash			48						38
Other invested assets
Limited partnerships			25						54
Other			30						20
Gross investment income before adjustments			490						465
Funds held interest income (expense)			12						6
Future policy benefit reserve income (expense)			—						—
Gross investment income			502						470
Investment expenses			11						13
Net investment income			$	491					$	457

(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 March 31,
			2025						2024
Annualized pre-tax yield on average cash and invested assets			4.6		%				4.8		%
Annualized after-tax yield on average cash and invested assets			3.8		%				4.1		%
Annualized return on invested assets			4.5		%				4.7		%

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 March 31,
(Dollars in millions)			2025						2024						Variance
Realized gains (losses) from dispositions:
Fixed maturity securities - available for sale
Gains			$	5					$	11					$	(6)
Losses			(9)						(18)						9
Total			(3)						(7)						4
Fixed maturity securities - held to maturity
Gains			—						—						—
Losses			(1)						—						(1)
Total			(1)						—						(1)
Equity securities
Gains			—						1						(1)
Losses			—						—						—
Total			—						1						(1)
Total net realized gains (losses) from dispositions
Gains			5						12						(7)
Losses			(10)						(18)						8
Total			(5)						(6)						2
Allowance for credit losses			(1)						2						(3)
Gains (losses) from fair value adjustments
Equity securities			(2)						(2)						1
Total			(2)						(2)						1
Total net gains (losses) on investments			$	(7)					$	(7)					$	—

(Some amounts may not reconcile due to rounding.)

Net gains (losses) on investments during the three months ended March 31, 2025 primarily relate to $5 million of losses due to the disposition of investments, $2 million of losses from fair value adjustments on equity securities and an increase to the allowance for credit losses of $1 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 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 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 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.

Reinsurance.

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

			Three Months Ended March 31,
(Dollars in millions)			2025						2024						Variance						% Change
Gross written premiums			$	3,219					$	3,175					$	44					1.4		%
Net written premiums			2,811						2,942						(131)						(4.5)		%
Premiums earned			$	2,905					$	2,728					$	177					6.5		%
Incurred losses and LAE			2,223						1,640						583						35.6		%
Commission and brokerage			707						671						36						5.4		%
Other underwriting expenses			71						71						—						0.1		%
Underwriting gain (loss)			$	(96)					$	347					$	(443)					NM
																					Point Chg
Loss ratio			76.5		%				60.1		%										16.4
Commission and brokerage ratio			24.3		%				24.6		%										(0.3)
Other underwriting expense ratio			2.4		%				2.6		%										(0.2)
Combined ratio			103.3		%				87.3		%										16.0

(NM, Not Meaningful)

(Some amounts may not reconcile due to rounding.)

Premiums. Gross written premiums increased by 1.4% to $3.2 billion for the three months ended March 31, 2025 from $3.2 billion for the three months ended March 31, 2024, primarily due to property catastrophe excess of loss business and property pro rata business, partially offset by actions taken on our North America casualty business.

Net written premiums decreased by 4.5% to $2.8 billion for the three months ended March 31, 2025, compared to $2.9 billion for the three months ended March 31, 2024, which was mainly due to higher cessions of the Company’s catastrophe excess of loss contracts to Mt. Logan Re.

Premiums earned increased by 6.5% to $2.9 billion for the three months ended March 31, 2025, compared to $2.7 billion for the three months ended March 31, 2024. 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 generally recorded at the initiation of the coverage period. The growth in premiums earned is primarily driven by increased property pro rata writings that were recorded over the prior quarters which are now being earned.

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

			Three Months Ended March 31,
(Dollars in millions)			Current Year						Ratio %/ Pt Change						Prior Years						Ratio %/ Pt Change						Total Incurred						Ratio %/ Pt Change
2025
Attritional			$	1,700					58.5		%				$	—					—		%				1,700						58.5		%
Catastrophes			523						18.0		%				—						—		%				524						18.0		%
Total Segment			$	2,223					76.5		%				$	—					—		%				$	2,223					76.5		%
2024
Attritional			$	1,560					57.2		%				$	—					—		%				1,560						57.2		%
Catastrophes			80						2.9		%				—						—		%				80						2.9		%
Total Segment			$	1,640					60.1		%				$	—					—		%				$	1,640					60.1		%
Variance 2025/2024
Attritional			$	140					1.3		pts				$	—					—		pts				$	140					1.3		pts
Catastrophes			443						15.1		pts				—						—		pts				443						15.1		pts
Total Segment			$	583					16.4		pts				$	—					—		pts				$	583					16.4		pts

(Some amounts may not reconcile due to rounding.)

Incurred losses increased by 35.6% to $2.2 billion for the three months ended March 31, 2025, compared to $1.6 billion for the three months ended March 31, 2024. The increase was primarily due to an increase of $140 million in current year attritional losses and an increase of $443 million in current year catastrophe losses. The increase in current year attritional losses was mainly related to $77 million of losses from the Washington D.C. aviation accident, as well as the impact of the increase in premiums earned. The current year catastrophe losses of $523 million for the three months ended March 31, 2025 consisted of losses from the 2025 Southern California wildfires ($503 million) and the Myanmar earthquake ($20 million). The $80 million of current year catastrophe losses for the three months ended March 31, 2024 related primarily to the 2024 Baltimore bridge collapse ($65 million) and the 2024 U.S. East Coast convective storms ($15 million).

Segment Expenses. Commission and brokerage expense increased by 5.4% to $707 million for the three months ended March 31, 2025, compared to $671 million for the three months ended March 31, 2024. The increase was mainly due to the impact of the increase in premiums earned. Segment other underwriting expenses remained consistent at $71 million for both the three months ended March 31, 2025 and the three months ended March 31, 2024.

Insurance.

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

			Three Months Ended March 31,
(Dollars in millions)			2025						2024						Variance						% Change
Gross written premiums			$	1,145					$	1,160					$	(15)					(1.3)		%
Net written premiums			896						897						—						—		%
Premiums earned			$	913					$	871					$	42					4.9		%
Incurred losses and LAE			640						551						90						16.3		%
Commission and brokerage			113						104						9						8.3		%
Other underwriting expenses			165						145						20						13.7		%
Underwriting gain (loss)			$	(5)					$	71					$	(76)					NM
																					Point Chg
Loss ratio			70.1		%				63.2		%										6.9
Commission and brokerage ratio			12.3		%				11.9		%										0.4
Other underwriting expense ratio			18.1		%				16.7		%										1.4
Combined ratio			100.5		%				91.9		%										8.7

(NM not meaningful)

(Some amounts may not reconcile due to rounding.)

Premiums. Gross written premiums decreased by 1.3% to $1.1 billion for the three months ended March 31, 2025, compared to $1.2 billion for the three months ended March 31, 2024. The decrease in insurance premiums was primarily due to portfolio actions taken on North America casualty lines and workers’ compensation lines, partially offset by an increase in property/short tail business and other specialty business.

Net written premiums remained consistent at $896 million for the three months ended March 31, 2025 and $897 million for the three months ended March 31, 2024.

Premiums earned increased by 4.9% to $913 million for the three months ended March 31, 2025, compared to $871 million for the three months ended March 31, 2024. 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 generally 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 March 31,
(Dollars in millions)			Current Year						Ratio %/ Pt Change						Prior Years						Ratio %/ Pt Change						Total Incurred						Ratio %/ Pt Change
2025
Attritional			$	630					69.0		%				$	—					—		%				630						69.0		%
Catastrophes			10						1.1		%				—						—		%				10						1.1		%
Total Segment			$	640					70.1		%				$	—					—		%				$	640					70.1		%
2024
Attritional			$	546					62.7		%				$	—					—		%				546						62.7		%
Catastrophes			5						0.6		%				—						—		%				5						0.5		%
Total Segment			$	551					63.3		%				$	—					—		%				$	551					63.2		%
Variance 2025/2024
Attritional			$	84					6.3		pts				$	—					—		pts				$	84					6.3		pts
Catastrophes			5						0.6		pts				—						—		pts				6						0.6		pts
Total Segment			$	89					6.9		pts				$	—					—		pts				$	90					6.9		pts

(Some amounts may not reconcile due to rounding.)

Incurred losses and LAE increased by 16.3% to $640 million for the three months ended March 31, 2025, compared to $551 million for the three months ended March 31, 2024. The increase was mainly due to an increase of $84 million in current year attritional losses and an increase of $5 million in current year catastrophe losses. The increase in current year attritional losses was primarily due to higher loss selections in casualty lines, partially offset by changes in the mix of business. The $10 million of current year catastrophe losses for the three months ended March 31, 2025 related to the 2025 Southern California wildfires ($8 million) and the Myanmar earthquake ($2 million). The $5 million of current year catastrophe losses for the three months ended March 31, 2024 related to the 2024 Baltimore bridge collapse.

Segment Expenses. Commission and brokerage increased by 8.3% to $113 million for the three months ended March 31, 2025, compared to $104 million for the three months ended March 31, 2024. Segment other underwriting expenses increased to $165 million for the three months ended March 31, 2025, compared to $145 million for the three months ended March 31, 2024. The increases were mainly due to the impact of the increase in premiums earned and increased expenses related to the expansion of the international insurance platform.

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:

			Three Months Ended March 31,
(Dollars in millions)			2025						2024						Variance						% Change
Gross written premiums			$	28					$	77					$	(49)					(63.8)		%
Net written premiums			27						61						(34)						(55.3)		%
Premiums earned			$	33					$	52					$	(19)					(37.2)		%
Incurred losses and LAE			30						46						(16)						(35.6)		%
Commission and brokerage			4						7						(2)						(35.6)		%
Other underwriting expenses			2						8						(5)						(69.1)		%
Underwriting gain (loss)			$	(3)					$	(8)					$	5					(57.7)		%

(Some amounts may not reconcile due to rounding.)

Premiums. Gross written premiums decreased by 63.8% to $28 million for the three months ended March 31, 2025, compared to $77 million for the three months ended March 31, 2024. Net written premiums decreased by 55.3% to $27 million for the three months ended March 31, 2025, compared to $61 million for the three months ended March 31, 2024. Premiums earned decreased by 37.2% to $33 million for the three months ended March 31, 2025, compared to $52 million for the three months ended March 31, 2024. The decrease in gross written premiums, net written premiums and premiums earned are due to the lines of business included in this segment primarily being in run-off, except for a limited number of renewed and new policies written on the Company's paper by the purchaser of the sports and leisure business sold in October 2024, for a finite period of time post-closing.

Incurred Losses and LAE. Incurred losses and LAE decreased by 35.6% to $30 million for the three months ended March 31, 2025, compared to $46 million for the three months ended March 31, 2024. Quarterly losses are primarily associated with the new and renewed sports and leisure business written on the company’s books.

FINANCIAL CONDITION

Investments. Total investments were $41.1 billion at March 31, 2025, an increase of $1.1 billion compared to $40.0 billion at December 31, 2024. The rise in investments was primarily related to an increase in fixed maturities - available for sale due to an overall net purchase of $2.4 billion, partially offset by a decrease in short-term investment due to an overall net sale of $1.8 billion during the three months ended March 31, 2025.

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 Financial Accounting Standards Board 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 March 31, 2025						At December 31, 2024
Fixed income portfolio duration (years)			3.3						3.1
Fixed income composite credit quality			AA-						AA-

Reinsurance Recoverables.

Reinsurance recoverables for both paid and unpaid losses totaled $3.6 billion and $3.1 billion at March 31, 2025 and December 31, 2024, respectively. At March 31, 2025, $482 million, or 13.6%, was receivable from Mt. Logan Re collateralized segregated accounts; $352 million, or 9.9%, was receivable from Munich Reinsurance America, Inc. and $247 million, or 7.0% was receivable from Endurance Assurance Corporation. No other retrocessionaire accounted for more than 5% of our recoverables.

Loss and LAE Reserves. Gross loss and LAE reserves totaled $31.5 billion and $29.9 billion at March 31, 2025 and December 31, 2024, respectively.

The following tables summarize gross outstanding loss and LAE reserves by segment, classified by case reserves and Incurred But Not Reported (“IBNR”) reserves, for the periods indicated.

			At March 31, 2025
(Dollars in millions)			Case Reserves						IBNR Reserves						Total Reserves						% of Total
Reinsurance			$	6,718					$	14,428					$	21,146					67.1		%
Insurance			2,330						6,733						9,062						28.8		%
Other (1)			368						936						1,303						4.1		%
Total			$	9,416					$	22,096					$	31,512					100.0		%

(Some amounts may not reconcile due to rounding.)

(1) Reserves for A&E exposures are included within Other. At March 31, 2025, A&E Case and IBNR reserves totaled $155 million and $96 million, respectively.

			At December 31, 2024
(Dollars in millions)			Case Reserves						IBNR Reserves						Total Reserves						% of Total
Reinsurance			$	6,591					$	13,117					$	19,708					65.9		%
Insurance			2,289						6,552						8,841						29.6		%
Other (1)			389						950						1,340						4.5		%
Total			$	9,270					$	20,619					$	29,889					100.0		%

(Some amounts may not reconcile due to rounding.)

(1) Reserves for A&E exposures are included within Other. At December 31, 2024, A&E Case and IBNR reserves totaled $149 million and $111 million, respectively.

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. A&E exposures represent a separate exposure group for monitoring and evaluating reserve adequacy. The results of run-off A&E exposures are included within the Company’s Other segment. 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 March 31,						At December 31,
(Dollars in millions)			2025						2024
Gross reserves			$	251					$	260
Ceded reserves			(18)						(17)
Net reserves			$	233					$	242

(Some amounts may not reconcile due to rounding.)

With respect to asbestos only, at March 31, 2025, we had net asbestos loss reserves of $206 million, or 88.7%, of total net A&E reserves, all of which was for assumed business. At March 31, 2025, we had gross asbestos loss reserves of $224 million, or 89.4% of total gross 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 7.1 years at March 31, 2025. 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 March 31, 2025 and December 31, 2024 was $14.1 billion and $13.9 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, Everest Reinsurance (Bermuda) Ltd. (“Bermuda Re”) and Everest Reinsurance Company (“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)			2024						2023						2024						2023
Regulatory targeted capital			$	3,151					$	2,669					$	4,799					$	4,242
Actual capital			$	4,323					$	3,711					$	8,126					$	6,963

(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, S&P 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 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.

For the three months ended March 31, 2025, we repurchased 574,000 of our common shares at a cost of $200 million in the open market and paid $85 million in common share dividends to enhance long-term expected returns to our shareholders. During fiscal year 2024, we repurchased 536,469 of our common shares at a cost of $200 million in the open market and paid $334 million in common share dividends. From time to time, we may enter into a Rule 10b5-1 repurchase plan to facilitate the repurchase of shares, repurchase shares in open market transactions, privately negotiated transactions or otherwise. On November 7, 2024, our existing Board authorization to purchase up to 32 million of our shares was increased by 10 million shares to authorize the purchase of up to 42 million shares. As of March 31, 2025, we had repurchased 31.9 million shares under this authorization. During the first quarter of 2025, the Company’s Board of Directors declared a quarterly common stock dividend of $2.00 per share. The common stock dividend was paid on March 28, 2025 for holders of record as of March 17, 2025.

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.

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, 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 $928 million and $1.1 billion for the three months ended March 31, 2025 and 2024, respectively. Additionally, these cash flows reflected net catastrophe loss payments of $317 million and $229 million for the three months ended March 31, 2025 and 2024, respectively, and net tax payments of $1 million and $16 million for the three months ended March 31, 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 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 March 31, 2025 and December 31, 2024, we held cash and short-term investments of $4.5 billion and $6.3 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 March 31, 2025, we had $1.1 billion of fixed maturity securities - available for sale maturing within one year or less, $10.6 billion maturing within one to five years and $6.7 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 March 31, 2025, we had $645 million of net pre-tax unrealized depreciation related to fixed maturity - available for sale securities, comprised of $921 million of pre-tax unrealized depreciation and $277 million of pre-tax unrealized appreciation.

Management generally expects annual positive cash flow from operations. 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, 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 March 31, 2025, Everest Re had statutory admitted assets of approximately $31.4 billion which provides borrowing capacity of up to approximately $3.1 billion. As of March 31, 2025, Everest Re had $1.0 billion of borrowings outstanding, which begin to expire in 2025. See Note 7 – Credit Facilities to the Notes to the consolidated financial statements in Part I, Item I of this Form 10-Q for further details.

Market Sensitive Instruments.

U.S. Securities and Exchange Commission (the “SEC”) Registrants are required 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 $42.6 billion cash and invested assets portfolio at March 31, 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 $7.8 billion of mortgage-backed securities in the $32.5 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 $2.9 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 March 31, 2025
			-200						-100						0						100						200
(Dollars in millions)
Total Fair Value			$	37,840					$	36,654					$	35,468					$	34,283					$	33,097
Fair Value Change from Base (%)			6.7%						3.3%						—%						(3.3)%						(6.7)%
Change in Unrealized Appreciation
After-tax from Base ($)			$	1,924					$	962					$	—					$	(962)					$	(1,924)

We had $31.5 billion and $29.9 billion of gross reserves for losses and LAE as of March 31, 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 of approximately 4.0 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 $5.0 billion resulting in a discounted reserve balance of approximately $23.3 billion, representing approximately 65.8% 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. Our operating entities may conduct business in local currency, as well as the currency of other countries in which they operate. The primary foreign currency exposures for these 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 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.