← Back to EG filing summaryOriginal filing text · Part I
Item 2 — Management's Discussion and Analysis
Everest Group, Ltd. · 10-Q · Q2 FY2026 · Period ended Jun 30, 2026
View complete filing on SEC EDGAR ↗This is the extracted source text from the SEC filing. Formatting may differ from the original document.
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 Global Wholesale & Specialty insurance franchise we strive to deliver consistent value to all our stakeholders.
Effective January 1, 2026, we changed our reportable segments, previously reported as Reinsurance and Insurance, to Reinsurance Treaty, Global Wholesale & Specialty, and Legacy, following the sale of the renewal rights for the Commercial Retail Insurance business in the majority of our geographic regions to American International Group, Inc. (“AIG”). This reflects our sharpened focus on our global Reinsurance Treaty business as well as the Global Wholesale & Specialty business, and positions the Company for strong performance across market cycles. Accordingly, we revised the presentation of reportable segments to appropriately reflect how the business segments are now managed by recasting specific sections of its 2025 10-K, filed with the SEC on a Current Report Form 8-K dated June 3, 2026.
Our Legacy segment primarily includes the divested and held-for-sale parts of the commercial retail insurance business and the results of our sports and leisure business that was sold in October 2024 consisting of policies written prior to the sale and certain new and renewed policies written on the Company’s paper post sale. Additionally, this segment includes run-off asbestos and environmental (“A&E”) exposures, certain discontinued insurance programs, and certain discontinued insurance and reinsurance coverage classes. The Legacy segment does not generally sell insurance or reinsurance products but is responsible for the management of existing policies and settlement of related losses. Certain commercial retail insurance policies will be renewed on the Company’s paper for a finite period in 2026. As a result, the Company has three reportable segments, however, only two that actively sell products, Reinsurance Treaty and Global Wholesale & Specialty, consistent with how the on-going business is managed. These segment presentation changes have been reflected retrospectively. See Note 7 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 and six months ended June 30, 2026. 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, 2025, included in the Company’s 2025 Annual Report on Form 10-K.
All comparisons in this discussion are to the corresponding prior year unless otherwise indicated.
Recent Developments.
Bermuda Monetary Authority Group Supervision
As further detailed below in the section titled “Item 1A. – Risk Factors”, during the three months ended June 30, 2026, the Bermuda Monetary Authority (the “BMA”) informed the Company of its formal determination that it is appropriate for the BMA to become Group Supervisor for the Company and specified that Everest Reinsurance (Bermuda) Ltd. (“Bermuda Re”) would become the “designated insurer” responsible for group-level regulatory compliance for Everest, pursuant to Section 27B of the Insurance Act 1978 (the “Act”). The Company and Bermuda Re are discussing with the BMA the applicable requirements of group supervision during a twelve-month transition period that ends in January 2027, with the BMA authorized to grant extensions of up to an additional twelve months upon application. During this period, the Company is analyzing compliance requirements and potential focus areas for enhancement and taking steps necessary to comply with the BMA’s group supervision requirements. Under the Act, the Company will be subject to group-level solvency and capital requirements, consolidated financial reporting and auditing obligations, recovery planning requirements and prior notification or approval requirements for certain material changes within the group. As Group Supervisor, the BMA will also chair a Supervisory College, coordinating with other regulators that supervise Everest’s licensed entities in other jurisdictions. Everest’s continuing assessment of and compliance with BMA group supervision will require the Company to allocate considerable time and resources that could impact the operations of our
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insurance and/or non-insurance subsidiaries or may result in increased costs or affect our financial condition. Group supervision could also affect our prescribed capital requirements, the terms of and structure of our regulatory capital, intercompany capital transactions, borrowing requirements and terms, and ratings and may significantly increase our cost of regulatory compliance.
Bermuda-based Reinsurance Sidecar
On June 17, 2026, the Company announced that it has partnered with Stone Point Insurance Solutions (“Stone Point”) to sponsor the launch of Annapurna Re Ltd. (“Annapurna”), a Bermuda-based collateralized insurer and special purpose vehicle (commonly referred to as a reinsurance "sidecar") structured as a segregated accounts company. Funds managed by Stone Point will serve as the inaugural, anchor investors in this multi-year vehicle. This structure legally isolates the assets and liabilities funded by third-party investors from the Company's general accounts.
Sale of Colombian Commercial Retail Insurance Operations
On May 19, 2026, the Company entered into a definitive agreement to sell its Colombian Commercial Retail Insurance Operations, Everest Compañía de Seguros Generales Colombia S.A. (“Everest Colombia”), to AIG. The transaction is anticipated to close in early 2027, pursuant to customary regulatory approvals and closing conditions.
As of June 30, 2026, Everest Colombia assets and liabilities are presented as held-for sale within Other assets and Other liabilities on the Company’s consolidated balance sheet. Refer to Note 6 of the Notes to the Consolidated Financial Statements for additional information.
Sale of Canadian Commercial Retail Insurance Operations
On March 22, 2026, Everest Underwriting Group (Ireland) Limited (“EUGIL”), an Irish direct subsidiary of the Company, entered into a Purchase Agreement with a Buyer, pursuant to which EUGIL agreed to sell to Buyer, or a Canadian affiliate thereof, all of the outstanding shares of capital of Everest Canada, a Canadian insurance company and a wholly owned subsidiary of EUGIL, representing the Company’s Canadian Commercial Retail Insurance operations for C$410 million, subject to adjustment. The closing of the transaction pursuant to the Purchase Agreement is subject to the satisfaction of customary closing conditions, including the receipt of antitrust approval from the Commissioner of Competition and insurance regulatory approval from the Minister of Finance (Canada).
In connection with the Purchase Agreement, (i) Everest Canada will enter into a loss portfolio transfer reinsurance agreement with Everest Reinsurance Company (Canadian Branch), a Delaware reinsurance company and affiliate of EUGIL (“ERC - Canadian Branch”), pursuant to which ERC - Canadian Branch will reinsure certain liabilities of Everest Canada with respect to the insurance business written prior to the closing of the transaction, (ii) EUGIL or an affiliate thereof and Buyer or an affiliate thereof will enter into a transition services agreement for specified transition services to be provided to Buyer and its affiliates and (iii) EUGIL and its affiliates, on the one hand, and Buyer and its affiliates, on the other hand, will enter into such other ancillary agreements as contemplated in the Purchase Agreement. As a result of the loss portfolio transfer reinsurance agreement described in item (i), assets held-for-sale will be comprised of only investments and cash at the time of the transaction close.
The transaction is anticipated to close in the second half of 2026, pursuant to customary regulatory approvals and closing conditions. For more details, see the Current Report on Form 8-K filed with the SEC on March 23, 2026 and the Purchase Agreement attached as Exhibit 10.2 to the quarterly report on Form 10-Q for the three months ended March 31, 2026.
As of June 30, 2026, Everest Canada assets and liabilities are presented as held-for sale within Other assets and Other liabilities on the Company’s consolidated balance sheet. Refer to Note 6 of the Notes to the Consolidated Financial Statements for additional information.
Adverse Development Cover Reinsurance Agreements
Effective October 1, 2025, the Company, through its subsidiaries Everest Re and Bermuda Re (the “Ceding Companies”), entered into adverse development reinsurance agreements with State National Insurance Company, Inc. and MS Transverse Insurance Company (collectively the “Reinsurers”). The Reinsurance Agreements are supported on a retrocessional basis by Longtail Re, an affiliate of Stone Ridge Capital.
The agreements reinsure potential adverse loss development for accident years 2024 and prior arising from substantially all of the Ceding Companies’ North American liabilities within the Insurance and Legacy segments (“Subject Business”) up
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to a gross limit of $1.2 billion. Certain liabilities are excluded from the subject business, including among others those related to the Asbestos and Environmental (“A&E”) reserves included in the Legacy segment. At the time the Company entered into the agreement, the carried reserves held for the Subject Business, pursuant to the Reinsurance Agreements, were $5.4 billion.
The adverse development cover (“ADC”) is composed of three layers. The first layer is an “in the money” layer whereby the ADC attachment point was $1,250 million below the Company’s North American Insurance and Legacy segment liability subject reserves of $5.4 billion held as of September 30, 2025. The second layer is $700 million in excess of the $5.4 billion. The Company transferred $1,250 million of in-the-money reserves in consideration for the first two layers upon closing of the transaction. The third layer is $500 million, for which the Company paid approximately $122 million of consideration upon closing of the transaction. The Company has a co-participation of $100 million in each of the second and third layers. For more details, see Form 8-K filed with the SEC on October 27, 2025 and the adverse development reinsurance agreements attached thereto and incorporated by reference in Exhibits 10.57 and 10.58 to the Company’s Annual Report on Form 10-K. The total covered losses ceded to State National Reinsurer as of June 30, 2026 and December 31, 2025 were $1.26 billion and $1.25 billion, respectively. The aggregated unexpired limit for State National Reinsurer as of June 30, 2026 and December 31, 2025 was $592 million and $597 million, respectively. The aggregated unexpired limit for MS Transverse Reinsurer as of June 30, 2026 and December 31, 2025 was $400 million.
Sale of Certain Commercial Retail Insurance Renewal Rights
On October 26, 2025, the Company entered into an agreement with AIG to sell the renewal rights for certain lines of commercial retail insurance business written by the Company in the U.S., U.K. and Asia Pacific, for an aggregate purchase price of $252 million. AIG paid the Company $30 million for originating and structuring the transaction. In addition, on October 26, 2025, the Company entered into an agreement with AIG to sell the renewal rights for certain lines of the commercial retail insurance business written by the Company in certain countries in the E.U., for an aggregate purchase price of $49 million. The final purchase price under the Master Transaction Agreements will be adjusted to equal 15% of the gross written premiums of the subject business for the year ended December 31, 2025, inclusive of year-end renewals as agreed between the Company and the Buyer.
Under the agreements, AIG agreed to pay the Company a total of $10 million per month for nine months starting January 1, 2026 for specified transition services. For more details, see the Current Report on Form 8-K filed with the SEC on October 28, 2025 and the Master Transaction Agreements incorporated by reference in Exhibits 10.59 and 10.60 to the Company’s Annual Report on Form 10-K.
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Financial Summary.
We monitor and evaluate our overall performance based upon financial results. The following table displays a summary of the consolidated net income (loss), ratios and 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) 2026 2025 2026 2025
Gross written premiums $ 3,772 $ 4,680 (19.4) % $ 7,374 $ 9,071 (18.7) %
Net written premiums 3,037 4,119 (26.3) % 6,224 7,853 (20.7) %
REVENUES:
Premiums earned $ 3,490 $ 3,991 (12.6) % $ 7,064 $ 7,843 (9.9) %
Net investment income 523 532 (1.6) % 1,091 1,023 6.6 %
Net gains (losses) on investments (8) (5) 46.1 % (17) (12) 43.1 %
Other income (expense) (45) (27) 64.9 % (108) (100) 8.1 %
Total revenues 3,961 4,491 (11.8) % 8,029 8,754 (8.3) %
CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses 2,170 2,472 (12.2) % 4,388 5,366 (18.2) %
Commission, brokerage, taxes and fees 814 880 (7.5) % 1,638 1,704 (3.9) %
Other underwriting expenses 225 254 (11.4) % 441 492 (10.4) %
Corporate expenses 33 31 3.7 % 71 52 35.1 %
Interest, fees and bond issue cost amortization expense 36 38 (5.3) % 71 76 (5.5) %
Total claims and expenses 3,278 3,676 (10.8) % 6,609 7,690 (14.1) %
INCOME (LOSS) BEFORE TAXES 683 815 (16.2) % 1,420 1,064 33.5 %
Income tax expense (benefit) 124 135 (8.2) % 207 173 19.5 %
NET INCOME (LOSS) $ 559 $ 680 (17.8) % $ 1,213 $ 890 36.2 %
RATIOS: Point Change Point Change
Loss ratio 62.2 % 61.9 % 0.3 62.1 % 68.4 % (6.3)
Commission and brokerage ratio 23.3 % 22.0 % 1.3 23.2 % 21.7 % 1.5
Other underwriting expense ratio 6.4 % 6.4 % 0.1 6.2 % 6.3 % —
Combined ratio 92.0 % 90.4 % 1.6 91.5 % 96.4 % (4.9)
At June 30, At December 31, Percentage Increase/ (Decrease)
(Dollars in millions, except per share amounts) 2026 2025
Balance sheet data (1):
Total investments and cash $ 44,863 $ 45,429 (1.2) %
Total assets 62,167 62,514 (0.6) %
Reserve for losses and loss adjustment expenses 34,735 34,312 1.2 %
Total debt 3,589 3,589 — %
Total liabilities 46,737 47,054 (0.7) %
Shareholders' equity 15,430 15,461 (0.2) %
Book value per share 398.83 379.83 5.0 %
(NM, not meaningful)
(Some amounts may not reconcile due to rounding.)
(1) Certain assets and liabilities related to the sale of our Canadian and Colombian Commercial Retail Insurance Operations are classified as assets and liabilities held-for-sale in 2026 within Other Assets and Other Liabilities. Refer to Recent Developments and Note 6 of the Notes to the Consolidated Financial Statements for additional information.
Core Businesses.
The Core businesses category is a new presentation of our results that is a non-GAAP financial measure that represents the aggregation of Reinsurance Treaty and Global Wholesale & Specialty segments to present consolidated financial results for the Company’s go-forward businesses, to which Everest continues to allocate growth capital and manage
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towards maximizing return on capital. The Company believes that the Core businesses presentation will provide investors and other interested persons with important information about the Company's ongoing businesses, and that this measure is a useful supplement to GAAP information concerning the Company’s performance. This measure may not, however, be comparable to similarly titled measures used by companies within or outside of the insurance industry. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, or superior to, the Company’s financial measures prepared in accordance with generally accepted accounting principles ("GAAP").
The following tables present reportable segment, total Core businesses and total consolidated underwriting results for the periods indicated:
Three Months Ended June 30, 2026
(Dollars in millions) Reinsurance Treaty Global Wholesale & Specialty Total Core Businesses Legacy Total Consolidated
Gross written premiums $ 2,720 $ 958 $ 3,678 $ 94 $ 3,772
Net written premiums 2,228 738 2,965 72 3,037
Premiums earned $ 2,459 $ 709 $ 3,167 $ 323 $ 3,490
Incurred losses and LAE 1,478 439 1,917 253 2,170
Commission and brokerage 626 146 773 41 814
Other underwriting expenses 71 89 161 64 225
Underwriting gain (loss) $ 283 $ 34 $ 317 $ (36) $ 281
Net investment income 523
Net gains (losses) on investments (8)
Corporate expenses (33)
Interest, fee and bond issue cost amortization expense (36)
Other income (expense) (45)
Income tax benefit (expense) (124)
Net income (loss) $ 559
(Some amounts may not reconcile due to rounding.)
Six Months Ended June 30, 2026
(Dollars in millions) Reinsurance Treaty Global Wholesale & Specialty Total Core Businesses Legacy Total Consolidated
Gross written premiums $ 5,394 $ 1,751 $ 7,145 $ 229 $ 7,374
Net written premiums 4,632 1,430 6,063 161 6,224
Premiums earned $ 4,915 $ 1,427 $ 6,342 $ 722 $ 7,064
Incurred losses and LAE 2,926 892 3,818 569 4,388
Commission and brokerage 1,258 298 1,556 82 1,638
Other underwriting expenses 132 180 312 129 441
Underwriting gain (loss) $ 598 $ 57 $ 655 $ (58) $ 597
Net investment income 1,091
Net gains (losses) on investments (17)
Corporate expenses (71)
Interest, fee and bond issue cost amortization expense (71)
Other income (expense) (108)
Income tax benefit (expense) (207)
Net income (loss) $ 1,213
(Some amounts may not reconcile due to rounding.)
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Three Months Ended June 30, 2025
(Dollars in millions) Reinsurance Treaty Global Wholesale & Specialty Total Core Businesses Legacy Total Consolidated
Gross written premiums $ 2,951 $ 957 $ 3,908 $ 772 $ 4,680
Net written premiums 2,785 765 3,550 569 4,119
Premiums earned $ 2,726 $ 728 $ 3,454 $ 538 $ 3,991
Incurred losses and LAE 1,568 471 2,039 433 2,472
Commission and brokerage 682 148 830 50 880
Other underwriting expenses 64 74 138 116 254
Underwriting gain (loss) $ 413 $ 35 $ 448 $ (63) $ 385
Net investment income 532
Net gains (losses) on investments (5)
Corporate expenses (31)
Interest, fee and bond issue cost amortization expense (38)
Other income (expense) (27)
Income tax benefit (expense) (135)
Net income (loss) $ 680
(Some amounts may not reconcile due to rounding.)
Six Months Ended June 30, 2025
(Dollars in millions) Reinsurance Treaty Global Wholesale & Specialty Total Core Businesses Legacy Total Consolidated
Gross written premiums $ 5,885 $ 1,728 $ 7,613 $ 1,459 $ 9,071
Net written premiums 5,313 1,420 6,733 1,120 7,853
Premiums earned $ 5,306 $ 1,460 $ 6,766 $ 1,078 $ 7,843
Incurred losses and LAE 3,573 952 4,525 841 5,366
Commission and brokerage 1,318 291 1,609 95 1,704
Other underwriting expenses 124 150 273 219 492
Underwriting gain (loss) $ 291 $ 67 $ 358 $ (77) $ 281
Net investment income 1,023
Net gains (losses) on investments (12)
Corporate expenses (52)
Interest, fee and bond issue cost amortization expense (76)
Other income (expense) (100)
Income tax benefit (expense) (173)
Net income (loss) $ 890
(Some amounts may not reconcile due to rounding.)
Revenues.
Premiums. Gross written premiums decreased by 19.4% to $3.8 billion for the three months ended June 30, 2026, compared to $4.7 billion for the three months ended June 30, 2025, driven by the following:
•a $678 million, or 87.9%, decrease in our Legacy segment, and
•a $230 million, or 7.8%, decrease in our Reinsurance Treaty segment,
•offset by a $1 million, or 0.1%, increase in our Global Wholesale & Specialty segment.
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Gross written premiums decreased by 18.7% to $7.4 billion for the six months ended June 30, 2026, compared to $9.1 billion for the six months ended June 30, 2025, driven by the following:
•a $1.2 billion, or 84.3% decrease in our Legacy segment, and
•a $491 million, or 8.3%, decrease in our Reinsurance Treaty segment,
•offset by a $23 million, or 1.3%, increase in our Global Wholesale & Specialty segment.
Net written premiums decreased by 26.3% to $3.0 billion for the three months ended June 30, 2026, compared to $4.1 billion for the three months ended June 30, 2025, driven by the following:
•a $557 million, or 20.0%, decrease in our Reinsurance Treaty segment,
•a $497 million, or 87.4%, decrease in our Legacy segment, and
•a $27 million, or 3.5%, decrease in our Global Wholesale & Specialty segment.
Net written premiums decreased by 20.7% to $6.2 billion for the six months ended June 30, 2026, compared to $7.9 billion for the six months ended June 30, 2025, driven by the following:
•a $959 million, or 85.6%, decrease in our Legacy segment, and
•a $680 million, or 12.8%, decrease in our Reinsurance Treaty segment,
•offset by a $10 million, or 0.7%, increase in our Global Wholesale & Specialty segment.
Premiums earned decreased by 12.6% to $3.5 billion during the three months ended June 30, 2026, compared to $4.0 billion during the three months ended June 30, 2025, driven by the following:
•a $267 million, or 9.8%, decrease in our Reinsurance Treaty segment,
•a $215 million, or 40.0%, decrease in our Legacy segment, and
•a $19 million, or 2.6%, decrease in our Global Wholesale & Specialty segment.
Premiums earned decreased by 9.9% to $7.1 billion for the six months ended June 30, 2026, compared to $7.8 billion for the six months ended June 30, 2025, driven by the following:
•a $391 million, or 7.4%, decrease in our Reinsurance Treaty segment,
•a $356 million, or 33.0%, decrease in our Legacy segment, and
•a $32 million, or 2.2%, decrease in our Global Wholesale & Specialty segment.
For additional premium information, refer to Segment Results.
Other Income (Expense). The following table shows the components of other income (expense) for the periods indicated:
Three Months Ended June 30, Six Months Ended June 30,
(Dollars in millions) 2026 2025 2026 2025
Mt. Logan cell income $ 3 $ 3 $ 4 $ 3
Foreign currency exchange income (expense) (22) (60) (10) (134)
Gain on pension plan settlement — 27 — 27
Transaction-related expenses (25) — (106) —
Other — 3 4 4
Total other income (expense) $ (45) $ (27) $ (108) $ (100)
(Some amounts may not reconcile due to rounding.)
We recorded other expense of $45 million and other expense of $27 million for the three months ended June 30, 2026 and 2025, respectively. The changes were driven by the following:
•$25 million of transaction expense incurred from the sale of renewal rights to the Company’s commercial retail insurance business in certain geographic regions,
•the result of fluctuations in foreign currency exchange rates, in particular, the movement in the Euro, British Pound Sterling and Israeli New Shekel. We recognized foreign currency exchange expense of $22 million and $60 million for the three months ended June 30, 2026 and 2025, respectively, and
•a $27 million gain recognized in 2025 from the termination of the qualified retirement plan that did not recur in 2026.
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We recorded other expense of $108 million and other expense of $100 million for the six months ended June 30, 2026 and 2025, respectively. The changes were driven by the following:
•$106 million of transaction expense incurred from the sale of renewal rights to the Company’s commercial retail insurance business in certain geographic regions,
•the result of fluctuations in foreign currency exchange rates, in particular, the movement in the Euro and British Pound Sterling. We recognized foreign currency exchange expense of $10 million and $134 million for the six months ended June 30, 2026 and 2025, respectively, and
•a $27 million gain recognized in 2025 from the termination of the qualified retirement plan that did not recur in 2026.
Net Investment Income. Refer to the “Consolidated Investments Results” section below.
Net Gains (Losses) on Investments. Refer to the “Consolidated Investments Results” section below.
Claims and Expenses.
Incurred Losses and Loss Adjustment Expenses (“LAE”). The following table presents 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
2026
Attritional $ 2,076 59.5 % $ (26) (0.7) % $ 2,050 58.7 %
Catastrophes 94 2.7 % 26 0.7 % 120 3.4 %
Total $ 2,170 62.2 % $ — — % $ 2,170 62.2 %
2025
Attritional $ 2,393 60.0 % $ 59 1.5 % $ 2,452 61.4 %
Catastrophes 20 0.5 % — — % 20 0.5 %
Total $ 2,413 60.5 % $ 59 1.5 % $ 2,472 61.9 %
Variance 2026/2025
Attritional $ (317) (0.5) pts $ (85) (2.2) pts $ (402) (2.7) pts
Catastrophes 74 2.2 pts 26 0.7 pts 100 2.9 pts
Total $ (243) 1.7 pts $ (59) (1.5) pts $ (302) 0.3 pts
(Some amounts may not reconcile due to rounding.)
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Six Months Ended June 30,
(Dollars in millions) Current Year Ratio %/ Pt Change Prior Years Ratio %/ Pt Change Total Incurred Ratio %/ Pt Change
2026
Attritional $ 4,197 59.4 % $ 11 0.2 % $ 4,207 59.6 %
Catastrophes 224 3.2 % (44) (0.6) % 180 2.5 %
Total $ 4,421 62.6 % $ (33) (0.5) % $ 4,388 62.1 %
2025
Attritional $ 4,753 60.6 % $ 59 0.8 % $ 4,812 61.4 %
Catastrophes 554 7.1 % — — % 554 7.1 %
Total $ 5,307 67.7 % $ 59 0.8 % $ 5,366 68.4 %
Variance 2026/2025
Attritional $ (556) (1.2) pts $ (49) (0.6) pts (604) (1.8) pts
Catastrophes (330) (3.9) pts (44) (0.6) pts (374) (4.5) pts
Total $ (886) (5.1) pts $ (93) (1.2) pts $ (978) (6.3) pts
(Some amounts may not reconcile due to rounding.)
Catastrophe Events. The following tables present our catastrophe events for the periods indicated.
Three Months Ended June 30, 2026
(Dollars in millions) Reinsurance Treaty Global Wholesale & Specialty Total Core Businesses Legacy Total Consolidated
Current year catastrophe losses
Hurricanes, Typhoons and Cyclones $ 10 $ — $ 10 $ — $ 10
Other weather related events 42 — 42 4 47
Wildfires — — — — —
Earthquakes — 5 5 5 10
Foreign conflict 23 5 27 — 27
Other — — — — —
Total current year catastrophe losses $ 75 $ 10 $ 85 $ 9 $ 94
Prior year catastrophe losses
Hurricanes, Typhoons and Cyclones $ (10) $ (2) $ (12) $ — $ (12)
Other weather related events (13) (1) (14) — (14)
Wildfires (1) 3 2 — 2
Earthquakes (6) — (6) — (6)
Foreign conflict — — — — —
Other 55 — 55 — 55
Total prior year catastrophe losses $ 26 $ — $ 26 $ — $ 26
Total catastrophe losses $ 101 $ 10 $ 111 $ 9 $ 121
(Some amounts may not reconcile due to rounding.)
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Six Months Ended June 30, 2026
(Dollars in millions) Reinsurance Treaty Global Wholesale & Specialty Total Core Businesses Legacy Total Consolidated
Current year catastrophe losses
Hurricanes, Typhoons and Cyclones $ 10 $ — $ 10 $ — $ 10
Other weather related events 93 13 105 13 119
Wildfires — — — — —
Earthquakes — 5 5 5 10
Foreign conflict 63 22 84 1 85
Other — — — — —
Total current year catastrophe losses $ 165 $ 40 $ 205 $ 19 $ 224
Prior year catastrophe losses
Hurricanes, Typhoons and Cyclones $ (36) $ (2) $ (37) $ 2 $ (35)
Other weather related events (11) (1) (12) (3) (14)
Wildfires (47) 3 (45) — (45)
Earthquakes (6) — (6) — (6)
Foreign conflict — — — — —
Other 55 — 55 — 55
Total prior year catastrophe losses $ (44) $ — $ (44) $ — $ (44)
Total catastrophe losses $ 121 $ 40 $ 161 $ 19 $ 181
(Some amounts may not reconcile due to rounding.)
Three Months Ended June 30, 2025
(Dollars in millions) Reinsurance Treaty Global Wholesale & Specialty Total Core Businesses Legacy Total Consolidated
Current year catastrophe losses
Hurricanes, Typhoons and Cyclones $ — $ — $ — $ — $ —
Other weather related events — 2 2 10 12
Wildfires — (4) (4) 5 1
Earthquakes — (2) (2) 9 7
Foreign conflict — — — — —
Other — — — — —
Total current year catastrophe losses $ — $ (4) $ (4) $ 24 $ 20
Prior year catastrophe losses
Hurricanes, Typhoons and Cyclones $ — $ 3 $ 2 $ (2) $ —
Other weather related events (6) 1 (5) (2) (7)
Wildfires — — — — —
Earthquakes 7 — 7 — 7
Foreign conflict — — — — —
Other — — — — —
Total prior year catastrophe losses $ — $ 4 $ 4 $ (4) $ —
Total catastrophe losses $ — $ — $ — $ 20 $ 20
(Some amounts may not reconcile due to rounding.)
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Six Months Ended June 30, 2025
(Dollars in millions) Reinsurance Treaty Global Wholesale & Specialty Total Core Businesses Legacy Total Consolidated
Current year catastrophe losses
Hurricanes, Typhoons and Cyclones $ — $ — $ — $ — $ —
Other weather related events — 2 2 10 12
Wildfires 488 17 505 8 513
Earthquakes 20 — 20 9 29
Foreign conflict — — — — —
Other — — — — —
Total current year catastrophe losses $ 508 $ 19 $ 527 $ 27 $ 554
Prior year catastrophe losses
Hurricanes, Typhoons and Cyclones $ (7) $ — $ (6) $ (1) $ (7)
Other weather related events (1) 2 — (2) (1)
Wildfires 3 — 3 — 3
Earthquakes 6 — 6 — 6
Foreign conflict — — — — —
Other (1) — (1) — (1)
Total prior year catastrophe losses $ — $ 2 $ 2 $ (2) $ —
Total catastrophe losses $ 509 $ 21 $ 529 $ 25 $ 554
(Some amounts may not reconcile due to rounding.)
Incurred losses and LAE decreased by 12.2% to $2.2 billion for the three months ended June 30, 2026, compared to $2.5 billion for the three months ended June 30, 2025, driven by the following:
•a decrease of $317 million in current year attritional losses, composed of Legacy segment ($169 million), Reinsurance Treaty segment ($106 million) and Global Wholesale & Specialty segment ($42 million), and
•an increase in net favorable development on prior year attritional losses of $85 million, primarily driven by $85 million from our Reinsurance Treaty segment,
•offset by, an increase of $74 million in current year catastrophe losses, primarily driven by $75 million from our Reinsurance Treaty segment, and
•an net unfavorable development on prior year catastrophe losses of $26 million, primarily driven by $26 million from our Reinsurance Treaty segment.
Incurred losses and LAE decreased by 18.2% to $4.4 billion for the six months ended June 30, 2026, compared to $5.4 billion for the six months ended June 30, 2025, driven by the following:
•a decrease of $556 million in current year attritional losses, primarily driven by Reinsurance Treaty segment ($210 million), Legacy segment ($266 million), and Global Wholesale & Specialty segment ($80 million),
•a decrease of $330 million in current year catastrophe losses, primarily driven by $343 million from our Reinsurance Treaty segment,
•a decrease in net unfavorable development on prior year attritional losses of $49 million, primarily driven by $49 million from our Reinsurance Treaty segment, and
•net favorable development on prior year catastrophe losses of $44 million, primarily driven by $44 million from our Reinsurance Treaty segment.
Commission, Brokerage, Taxes and Fees. Commission, brokerage, taxes and fees decreased by 7.5% to $814 million for the three months ended June 30, 2026, compared to $880 million for the three months ended June 30, 2025, driven by the following:
•a $55 million, or 8.1% decrease within our Reinsurance Treaty segment,
•a $9 million, 18.5% decrease within our Legacy segment, and
•a $2 million, or 1.1% decrease within our Global Wholesale & Specialty segment.
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Commission, brokerage, taxes and fees decreased by 3.9% to $1.6 billion for the six months ended June 30, 2026, compared to $1.7 billion for the six months ended June 30, 2025. The decrease, driven by the following:
•a $60 million, or 4.6% decrease within our Reinsurance Treaty segment, and
•a $13 million, 13.5% decrease within our Legacy segment, offset by
•a $7 million, or 2.5% increase within our Global Wholesale & Specialty segment.
Other Underwriting Expenses. Other underwriting expenses decreased by 11.4% to $225 million for the three months ended June 30, 2026, compared to $254 million for the three months ended June 30, 2025, driven by the following:
•a $52 million, or 44.8% decrease within our Legacy segment, offset by
•a $16 million, or 21.1% increase within our Global Wholesale & Specialty segment, and
•a $8 million, or 11.9% increase within our Reinsurance Treaty segment.
Other underwriting expenses decreased by 10.4% to $441 million for the six months ended June 30, 2026, compared to $492 million for the six months ended June 30, 2025. The changes were driven by the following:
•a $90 million, or 41.2% decrease within our Legacy segment, offset by
•a $30 million, or 20.3% increase within our Global Wholesale & Specialty segment, and
•a $9 million, or 7.1% increase within our Reinsurance Treaty segment.
For additional claims and expenses information, refer to Segment Results.
Corporate Expenses. Corporate expenses, which are general operating expenses that are not allocated to segments, were $33 million and $31 million for the three months ended June 30, 2026 and 2025, respectively. Corporate expenses were $71 million and $52 million for the six months ended June 30, 2026 and 2025, respectively. The changes were primarily driven by professional fees associated with certain corporate initiatives.
Interest, Fees and Bond Issue Cost Amortization Expense. Interest, fees and other bond amortization expense remained relatively consistent at $36 million for the three months ended June 30, 2026, compared to $38 million for the three months ended June 30, 2025, driven by the following:
•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 Federal Home Loan Bank of New York (“FHLBNY”).
Interest, fees and other bond amortization expense decreased to $71 million from $76 million for the six months ended June 30, 2026 and 2025, respectively, driven by the following:
•The decrease for the six months ended June 30, 2026 was mainly due to higher interest costs on the FHLBNY borrowing, more than fully offset by a decrease in the floating interest rate related to the Company’s outstanding fixed to floating rate long-term subordinated notes, which is reset quarterly, per the note agreement. The floating rate was 6.30% as of June 30, 2026, compared to 6.97% as of June 30, 2025.
Income Tax Expense (Benefit). Income tax expense was $124 million and $135 million for the three months ended June 30, 2026 and 2025, respectively. Income tax expense was $207 million and $173 million for the six months ended June 30, 2026 and 2025, respectively. The period over period change 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.
The 2026 income tax expense includes a one-time tax benefit of approximately $40 million resulting from a change in the U.K. tax law effective March 20, 2026, following the Organisation for Economic Co-operation and Development’s (“OECD”) January 2025 guidance on ‘covered taxes’.
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 OECD issued Administrative Guidance related to “deferred tax assets arising from tax benefits
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provided by General Government” restricting 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.
On January 20, 2025, President Trump issued a memorandum announcing that the OECD framework has “no force or effect in the United States” and disavowing any commitments previously made by the United States with respect to the framework. The memorandum also directs the U.S. Secretary of the Treasury to develop and present to President Trump a list of protective measures or other options towards foreign countries that are either not in compliance with any tax treaty with the United States or have tax rules that are “extraterritorial or disproportionately affect American companies.” The possible uneven enactment of the OECD framework by various jurisdictions coupled with the United States’ response to these rules could cause uncertainties to and increases in our income taxes.
On July 4, 2025, the One Big Beautiful Bill was signed into law. The One Big Beautiful Bill did not have a material impact on our results of operations, financial condition, or cash flows upon enactment in 2025, and we do not expect it to have a material impact in the future; however, we will continue to evaluate the impact of the One Big Beautiful Bill.
On January 5, 2026, the OECD released Administrative Guidance containing the side-by-side (SbS) package on the OECD’s global minimum tax. The SbS Administrative Guidance introduced, among other things, new safe harbors, including a SbS safe harbor for multi-national groups headquartered in certain eligible jurisdictions, now limited to the US. Qualification for this safe harbor would exempt companies from the OECD global minimum tax. We expect additional Administrative Guidance in the future providing implementation guidance on the SbS. Accordingly, the OECD’s global minimum tax could be subject to further changes that will continue to cause uncertainties related to income taxes payable by our company.
Segment Results.
Effective January 1, 2026, the Company changed its reportable segments, previously reported as Reinsurance and Insurance, to Reinsurance Treaty, Global Wholesale & Specialty, and Legacy, following the sale of the renewal rights for its Commercial Retail Insurance business in the majority of our geographic regions to AIG. This new segment presentation reflects the Company's sharpened focus on its global Reinsurance Treaty business as well as its Global Wholesale & Specialty business, and positions the Company for strong performance across market cycles. Accordingly, the Company revised the presentation of its reportable segments to appropriately reflect how the business segments are now managed and recast specific sections of its 2025 Form 10-K on a Current Report on Form 8-K dated June 3, 2026.
The Company now has three reportable segments, however, only two that actively sell products, Reinsurance Treaty and Global Wholesale & Specialty. Our Legacy segment primarily includes the divested and held-for-sale parts of the commercial retail insurance business and the results of our sports and leisure business that was sold in October 2024 consisting of policies written prior to the sale and certain new and renewed policies written on the Company’s paper post sale. Additionally, this segment includes run-off A&E exposures, certain discontinued insurance programs, and certain discontinued insurance and reinsurance coverage classes. The Legacy segment does not generally sell insurance or reinsurance products but is responsible for the management of existing policies and settlement of related losses. Certain commercial retail insurance policies will be renewed on the Company’s paper for a finite period in 2026. These segment presentation changes have been reflected retrospectively.
Our three reportable segments, Reinsurance Treaty, Global Wholesale & Specialty and Legacy, each have executive leadership who are responsible for the overall performance of their respective segments and who are directly accountable to our chief operating decision maker (“CODM”), the President and Chief Executive Officer of Everest Group, Ltd., who is ultimately responsible for reviewing the business to assess performance, make operating decisions and allocate resources. We report the results of our operations consistent with the manner in which our CODM reviews the business.
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 also 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
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as our business evolves and may further refine our segments and financial performance measures. The Company does not review and evaluate the financial results of its segments based upon balance sheet data.
The following discusses the underwriting results for each of our segments for the periods indicated.
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Reinsurance Treaty.
The following table presents the underwriting results and ratios for the Reinsurance Treaty segment for the periods indicated:
Three Months Ended June 30, Six Months Ended June 30,
(Dollars in millions) 2026 2025 Variance % Change 2026 2025 Variance % Change
Gross written premiums $ 2,720 $ 2,951 $ (230) (7.8) % $ 5,394 $ 5,885 $ (491) (8.3) %
Net written premiums 2,228 2,785 (557) (20.0) % 4,632 5,313 (680) (12.8) %
Premiums earned $ 2,459 $ 2,726 $ (267) (9.8) % $ 4,915 $ 5,306 $ (391) (7.4) %
Incurred losses and LAE 1,478 1,568 (90) (5.8) % 2,926 3,573 (646) (18.1) %
Commission and brokerage 626 682 (55) (8.1) % 1,258 1,318 (60) (4.6) %
Other underwriting expenses 71 64 8 11.9 % 132 124 9 7.1 %
Underwriting gain (loss) $ 283 $ 413 $ (129) (31.4) % $ 598 $ 291 $ 307 NM
Point Chg Point Chg
Loss ratio 60.1 % 57.5 % 2.6 59.5 % 67.3 % (7.8)
Commission and brokerage ratio 25.5 % 25.0 % 0.5 25.6 % 24.8 % 0.8
Other underwriting expense ratio 2.9 % 2.3 % 0.6 2.7 % 2.3 % 0.4
Combined ratio 88.5 % 84.9 % 3.6 87.8 % 94.5 % (6.7)
(NM, Not Meaningful)
(Some amounts may not reconcile due to rounding.)
Premiums. Gross written premiums decreased by 7.8% to $2.7 billion for the three months ended June 30, 2026, compared to $3.0 billion for the three months ended June 30, 2025, driven by the following:
•the effects of underwriting actions on casualty pro rata and casualty excess of loss lines of business, and
•decrease in Property CAT XOL and Property Non-CAT XOL due to lower reinstatement premium and declining property rates.
Gross written premiums decreased by 8.3% to $5.4 billion for the six months ended June 30, 2026, compared to $5.9 billion for the six months ended June 30, 2025, driven by the following:
•the effects of underwriting actions on casualty pro rata and casualty excess of loss lines of business, and
•decrease in Property CAT XOL and Property Non-CAT XOL due to lower reinstatement premium and declining property rates.
Net written premiums decreased by 20.0% to $2.2 billion for the three months ended June 30, 2026, compared to $2.8 billion for the three months ended June 30, 2025, driven by the following:
•increased third-party cessions, largely driven by the new Annapurna Re, Ltd. reinsurance sidecar. Refer to Recent Developments section above for details.
Net written premiums decreased by 12.8% to $4.6 billion for the six months ended June 30, 2026, compared to $5.3 billion for the six months ended June 30, 2025, driven by the following:
•increased third-party cessions, largely driven by the new Annapurna Re, Ltd. reinsurance sidecar. Refer to the to Recent Developments section above for details.
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Premiums earned decreased by 9.8% to $2.5 billion for the three months ended June 30, 2026, compared to $2.7 billion for the three months ended June 30, 2025. Premiums earned decreased by 7.4% to $4.9 billion for the six months ended June 30, 2026, compared to $5.3 billion for the six months ended June 30, 2025. The decrease for the three months and six months is driven by:
•the change in premiums earned relative to net written premiums which 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, and
•increased cessions due to the creation of the new Annapurna Re, Ltd. reinsurance sidecar. Refer to the Recent Developments section above for details.
Incurred Losses and LAE. The following tables present the incurred losses and LAE for the Reinsurance Treaty 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
2026
Attritional $ 1,403 57.1 % $ (26) (1.1) % 1,377 56.0 %
Catastrophes 75 3.1 % 26 1.1 % 101 4.2 %
Total Segment $ 1,478 60.1 % $ — — % $ 1,478 60.1 %
2025
Attritional $ 1,509 55.4 % $ 59 2.2 % 1,568 57.6 %
Catastrophes — — % — — % — — %
Total Segment $ 1,509 55.4 % $ 59 2.2 % $ 1,568 57.6 %
Variance 2026/2025
Attritional $ (106) 1.7 pts $ (85) (3.3) pts $ (191) (1.6) pts
Catastrophes 75 3.1 pts 26 1.1 pts 101 4.2 pts
Total Segment $ (31) 4.8 pts $ (59) (2.2) pts $ (90) 2.6 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
2026
Attritional $ 2,795 56.9 % $ 11 0.2 % 2,805 57.1 %
Catastrophes 165 3.4 % (44) (0.9) % 121 2.5 %
Total Segment $ 2,960 60.2 % $ (33) (0.7) % $ 2,926 59.5 %
2025
Attritional $ 3,005 56.6 % $ 59 1.1 % 3,064 57.7 %
Catastrophes 508 9.6 % — — % 509 9.6 %
Total Segment $ 3,514 66.2 % $ 59 1.1 % $ 3,573 67.3 %
Variance 2026/2025
Attritional $ (210) 0.3 pts $ (49) (0.9) pts $ (259) (0.6) pts
Catastrophes (343) (6.2) pts (44) (0.9) pts (388) (7.1) pts
Total Segment $ (554) (6.0) pts $ (93) (1.8) pts $ (646) (7.8) pts
(Some amounts may not reconcile due to rounding.)
Incurred losses decreased by 5.8% to $1.5 billion for the three months ended June 30, 2026, compared to $1.6 billion for the three months ended June 30, 2025, primarily related to the impact of the decrease in earned premiums. The
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Reinsurance Treaty segment loss ratio increased by 2.6 pts for the three months ended June 30, 2026, driven by the following:
•an increase of $75 million in current year catastrophe losses, with current year catastrophe losses primarily being driven by Other Weather Related Events ($42 million) and Foreign Conflict ($23 million),
•net unfavorable development on prior year catastrophe losses of $26 million, with prior year catastrophe losses primarily being driven by Other ($55 million) related to the 2024 Baltimore Bridge collapse, which was offset by reserves released for various well-seasoned events, and
•elevated non-catastrophe weather losses in the current year attritional losses,
•offset by an increase of net favorable development on prior year attritional losses of $26 million, primarily related to the Property book of business.
Incurred losses decreased by 18.1% to $2.9 billion for the six months ended June 30, 2026, compared to $3.6 billion for the six months ended June 30, 2025. The Reinsurance Treaty segment loss ratio decreased by 7.8 pts for the six months ended June 30, 2026, driven by the following:
•a decrease of $210 million in current year attritional losses, driven by a decrease in earned premiums and Washington D.C. aviation accident loss recognized in first quarter 2025,
•a decrease of $343 million in current year catastrophe losses, primarily related to Other Weather Related Events ($93 million) and Foreign Conflict ($63 million), and
•an increase of net unfavorable development on prior year attritional losses of $11 million, primarily related to the first quarter of 2026 development of Russia/Ukraine losses which was offset by reserves release related to the Property book of business,
•offset by net favorable development on prior year catastrophe losses of $44 million, primarily related to reserves released for Wildfires ($47 million), Hurricanes, Typhoons and Cyclones ($36 million), Other Weather Related Events ($11 million), offset by Other ($55 million) driven by the 2024 Baltimore Bridge collapse.
Refer to Catastrophe Events section above for further information on catastrophe losses by segment.
Segment Expenses. Commission and brokerage expense decreased by 8.1% to $626 million for the three months ended June 30, 2026, compared to $682 million for the three months ended June 30, 2025, driven by the decline in premium volume. The Reinsurance Treaty segment commission and brokerage expense ratio increased by 0.5 pts for the three months ended June 30, 2026, driven by a changes in the mix of business, with decreases in net earned premium on the property catastrophe line.
Commission and brokerage expense decreased by 4.6% to $1.3 billion for the six months ended June 30, 2026, compared to $1.3 billion for the six months ended June 30, 2025, driven by the decline in premium volume. The Reinsurance Treaty segment commission and brokerage expense ratio increased by 0.8 pts for the six months ended June 30, 2026, driven by a changes in the mix of business, with decreases in net earned premium on the property catastrophe line
Segment other underwriting expenses increased by 11.9% to $71 million for the three months ended June 30, 2026, compared to $64 million for the three months ended June 30, 2025. The Reinsurance Treaty segment other underwriting expense ratio increased by 0.6 pts for the three months ended June 30, 2026, driven by the following:
•increased professional services expenses as well as higher staffing/resource costs.
Segment other underwriting expenses increased by 7.1% to $132 million for the six months ended June 30, 2026, compared to $124 million for the six months ended June 30, 2025. The Reinsurance Treaty segment other underwriting expense ratio increased by 0.4 pts for the six months ended June 30, 2026, driven by the following:
•increased professional services expenses as well as higher staffing/resource costs.
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Global Wholesale & Specialty.
The following table presents the underwriting results and ratios for the Global Wholesale & Specialty segment for the periods indicated:
Three Months Ended June 30, Six Months Ended June 30,
(Dollars in millions) 2026 2025 Variance % Change 2026 2025 Variance % Change
Gross written premiums $ 958 $ 957 $ 1 0.1 % $ 1,751 $ 1,728 $ 23 1.3 %
Net written premiums 738 765 (27) (3.5) % 1,430 1,420 10 0.7 %
Premiums earned $ 709 $ 728 $ (19) (2.6) % $ 1,427 $ 1,460 $ (32) (2.2) %
Incurred losses and LAE 439 471 (32) (6.7) % 892 952 (60) (6.3) %
Commission and brokerage 146 148 (2) (1.1) % 298 291 7 2.5 %
Other underwriting expenses 89 74 16 21.1 % 180 150 30 20.3 %
Underwriting gain (loss) $ 34 $ 35 $ (1) (4.1) % $ 57 $ 67 $ (10) (14.7) %
Point Chg Point Chg
Loss ratio 62.0 % 64.7 % (2.7) 62.5 % 65.2 % (2.7)
Commission and brokerage ratio 20.6 % 20.3 % 0.3 20.9 % 19.9 % 1.0
Other underwriting expense ratio 12.6 % 10.2 % 2.4 12.6 % 10.2 % 2.4
Combined ratio 95.2 % 95.2 % — 96.0 % 95.4 % 0.6
(NM not meaningful)
(Some amounts may not reconcile due to rounding.)
Premiums. Gross written premiums increased by 0.1% remaining relatively constant at $1.0 billion for the three months ended June 30, 2026, compared to $1.0 billion for the three months ended June 30, 2025, driven by the following:
•growth in other specialty and professional liability,
•offset by reductions in specialty casualty businesses.
Gross written premiums increased by 1.3% at $1.8 billion for the six months ended June 30, 2026, compared to $1.7 billion for the six months ended June 30, 2025, driven by the following:
•growth in other specialty, professional liability, and accident and health,
•offset by reductions in property/short-tail and specialty casualty businesses.
Net written premiums decreased by 3.5% to $738 million for the three months ended June 30, 2026, compared to $765 million for the three months ended June 30, 2025, driven by the following:
•additional outwards reinsurance purchased against the specialty casualty business via the new Annapurna Re, Ltd. reinsurance sidecar cessions. Refer to Recent Developments section above for details.
Net written premiums increased by 0.7% remaining relatively constant at $1.4 billion for the six months ended June 30, 2026, compared to $1.4 billion for the six months ended June 30, 2025, driven by the following:
•the increase is consistent with gross written premium changes in addition to business mix, with higher net retention in certain lines of business. This is partially offset by additional outwards reinsurance purchased against the specialty casualty business via the new Annapurna Re, Ltd. reinsurance sidecar cessions. Refer to the Recent Developments section above for details.
Premiums earned decreased by 2.6% to $709 million for the three months ended June 30, 2026, compared to $728 million for the three months ended June 30, 2025. Premiums earned decreased by 2.2% to $1.4 billion for the six months ended June 30, 2026, compared to $1.5 billion for the six months ended June 30, 2025. The decrease for the three and six months ended is driven by:
•the change in premiums earned relative to net written premiums which 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.
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Incurred Losses and LAE. The following tables present the incurred losses and LAE for the Global Wholesale & Specialty 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
2026
Attritional $ 429 60.6 % $ — — % 429 60.6 %
Catastrophes 10 1.4 % — — % 10 1.4 %
Total Segment $ 439 62.0 % $ — — % $ 439 62.0 %
2025
Attritional $ 471 64.7 % $ — — % 471 64.7 %
Catastrophes (4) (0.6) % 4 0.6 % — — %
Total Segment $ 467 64.1 % $ 4 0.6 % $ 471 64.7 %
Variance 2026/2025
Attritional $ (42) (4.1) pts $ — — pts $ (42) (4.1) pts
Catastrophes 14 2.0 pts (4) (0.6) pts 10 1.4 pts
Total Segment $ (28) (2.2) pts $ (4) (0.6) pts $ (32) (2.7) pts
Six Months Ended June 30,
(Dollars in millions) Current Year Ratio %/ Pt Change Prior Years Ratio %/ Pt Change Total Incurred Ratio %/ Pt Change
2026
Attritional $ 852 59.7 % $ — — % 852 59.7 %
Catastrophes 40 2.8 % — — % 40 2.8 %
Total Segment $ 892 62.5 % $ — — % $ 892 62.5 %
2025
Attritional $ 932 63.8 % $ — — % 932 63.8 %
Catastrophes 19 1.3 % 2 — % 21 1.4 %
Total Segment $ 951 65.1 % $ 2 0.1 % $ 952 65.2 %
Variance 2026/2025
Attritional $ (80) (4.1) pts $ — — pts (80) (4.1) pts
Catastrophes 21 1.5 pts (2) (0.1) pts 19 1.4 pts
Total Segment $ (59) (2.6) pts $ (2) (0.1) pts $ (60) (2.7) pts
(Some amounts may not reconcile due to rounding.)
Incurred losses and LAE decreased by 6.7% to $439 million for the three months ended June 30, 2026, compared to $471 million for the three months ended June 30, 2025. The Global Wholesale & Specialty segment loss ratio decreased by 2.7 pts for the three months ended June 30, 2026, driven by the following:
•a decrease of $42 million in current year attritional losses, due to improved loss experience in certain lines of business and mix of business,
•offset by an increase of $14 million in current year catastrophe losses, with current year catastrophe losses primarily being driven by current year reserves for Earthquakes ($5 million) and Foreign Conflict ($5 million).
Incurred losses and LAE decreased by 6.3% to $892 million for the six months ended June 30, 2026, compared to $1.0 billion for the six months ended June 30, 2025. The Global Wholesale & Specialty segment loss ratio decreased by 2.7 pts for the six months ended June 30, 2026, driven by the following:
•a decrease of $80 million in current year attritional losses, primarily related to improved loss experience in certain lines of business and mix of business,
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•offset by an increase in current year catastrophe losses of $21 million, with current year catastrophe losses primarily being driven by higher reserves for Foreign Conflict ($22 million), Other Weather Related Events ($13 million) and Earthquakes ($5 million).
Refer to Catastrophe Events section above for further information on catastrophe losses by segment.
Segment Expenses. Commission and brokerage expenses decreased by 1.1% to $146 million for the three months ended June 30, 2026, compared to $148 million for the three months ended June 30, 2025, driven by the decline in net written premiums. The Global Wholesale & Specialty segment commission and brokerage expense ratio increased by 0.3 pts for the three months ended June 30, 2026, driven by increased profit commissions in both international and North American other specialty business partially offset by change in mix of business.
Commission and brokerage expenses increased by 2.5% to $298 million for the six months ended June 30, 2026, compared to $291 million for the six months ended June 30, 2025. The Global Wholesale & Specialty segment commission and brokerage expense ratio increased by 1.0 pts for the six months ended June 30, 2026, driven by change in mix of business, and lower ceding commission in certain lines of business.
Segment other underwriting expenses increased by 21.1% to $89 million for the three months ended June 30, 2026, compared to $74 million for the three months ended June 30, 2025. The Global Wholesale & Specialty segment other underwriting expense ratio increased by 2.4 pts for the three months ended June 30, 2026, driven by investment in the Global Wholesale & Specialty division technology platform
Segment other underwriting expenses increased by 20.3% to $180 million for the six months ended June 30, 2026, compared to $150 million for the six months ended June 30, 2025. The Global Wholesale & Specialty segment other underwriting expense ratio increased by 2.4 pts for the six months ended June 30, 2026, driven by investment in the Global Wholesale & Specialty division technology platform
Legacy.
The Legacy segment primarily includes the divested and held-for-sale parts of the commercial retail insurance business and the results of our sports and leisure business that was sold in October 2024 consisting of policies written prior to the sale and certain new and renewed policies written on the Company’s paper post sale. Additionally, this segment includes run-off A&E exposures, certain discontinued insurance programs, and certain discontinued insurance and reinsurance coverage classes. The Legacy segment does not generally sell insurance or reinsurance products but is responsible for the management of existing policies and settlement of related losses. Certain commercial retail insurance policies will be renewed on the Company’s paper for a finite period in 2026.
The following table presents the underwriting results for the Legacy segment for the periods indicated:
Three Months Ended June 30, Six Months Ended June 30,
(Dollars in millions) 2026 2025 Variance % Change 2026 2025 Variance % Change
Gross written premiums $ 94 $ 772 $ (678) (87.9) % $ 229 $ 1,459 $ (1,230) (84.3) %
Net written premiums 72 569 (497) (87.4) % 161 1,120 (959) (85.6) %
Premiums earned $ 323 $ 538 $ (215) (40.0) % $ 722 $ 1,078 $ (356) (33.0) %
Incurred losses and LAE 253 433 (180) (41.5) % 569 841 (272) (32.3) %
Commission and brokerage 41 50 (9) (18.5) % 82 95 (13) (13.5) %
Other underwriting expenses 64 116 (52) (44.8) % 129 219 (90) (41.2) %
Underwriting gain (loss) $ (36) $ (63) $ 27 (42.5) % $ (58) $ (77) $ 19 (24.2) %
Premiums. Premiums have decreased significantly compared to prior periods as a result of the commercial retail insurance business sale to AIG under the previously announced renewal rights agreement.
•Gross written premiums decreased by 87.9% and 84.3% for the three and six months ended 2026 and 2025, respectively.
•Net written premiums decreased by 87.4% and 85.6% for the three and six months ended 2026 and 2025, respectively.
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•Premiums earned decreased by 40.0% and 33.0% for the three and six months ended 2026 and 2025, respectively.
Incurred Losses and LAE. The following tables present the incurred losses and LAE for the Legacy 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
2026
Attritional $ 244 75.6 % $ — — % 244 75.6 %
Catastrophes 9 2.9 % — — % 9 2.9 %
Total Segment $ 253 78.5 % $ — — % $ 253 78.5 %
2025
Attritional $ 413 76.9 % $ — — % 413 76.9 %
Catastrophes 24 4.5 % (4) (0.8) % 20 3.7 %
Total Segment $ 437 81.4 % $ (4) (0.8) % $ 433 80.6 %
Variance 2026/2025
Attritional $ (169) (1.2) pts $ — — pts $ (169) (1.3) pts
Catastrophes (15) (1.6) pts 4 0.8 pts (11) (0.9) pts
Total Segment $ (184) (2.9) pts $ 4 0.8 pts $ (180) (2.1) pts
Six Months Ended June 30,
(Dollars in millions) Current Year Ratio %/ Pt Change Prior Years Ratio %/ Pt Change Total Incurred Ratio %/ Pt Change
2026
Attritional $ 550 76.2 % $ — — % 550 76.2 %
Catastrophes 19 2.7 % — — % 19 2.7 %
Total Segment $ 569 78.9 % $ — — % $ 569 78.9 %
2025
Attritional $ 816 75.7 % $ — — % 816 75.7 %
Catastrophes 27 2.5 % (2) — % 25 2.3 %
Total Segment $ 843 78.2 % $ (2) (0.2) % $ 841 78.0 %
Variance 2026/2025
Attritional $ (266) 0.5 pts $ — — pts (266) 0.5 pts
Catastrophes (8) 0.2 pts 2 0.2 pts (5) 0.4 pts
Total Segment $ (273) 0.7 pts $ 2 0.2 pts $ (272) 0.8 pts
(Some amounts may not reconcile due to rounding.)
Incurred losses and LAE decreased by 41.5% to $253 million for the three months ended June 30, 2026, compared to $433 million for the three months ended June 30, 2025, driven by the following:
•a decrease of $169 million in current year attritional losses, reflecting the decline in premiums earned. Despite this expected reduction, the Company maintained conservative loss selections within the North America Casualty lines of business.
•a decrease of $4 million in net favorable development from prior year catastrophe losses, with prior year catastrophe losses primarily being driven by Hurricanes, Typhoons and Cyclones ($2 million) and Other Weather Related Events ($2 million), and
•a decrease of $15 million in current year catastrophe losses, primarily driven by Earthquakes ($5 million) and Other Weather Related Events ($4 million).
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Incurred losses and LAE decreased by 32.3% to $569 million for the six months ended June 30, 2026, compared to $841 million for the six months ended June 30, 2025, driven by the following:
•a decrease of $266 million in current year attritional losses, primarily reflecting reserve strengthening recognized in 2025 for U.S. casualty lines of business driven by elevated loss experience in excess casualty and U.S. liability lines, principally related to accident years 2022 through 2024, and
•a decrease of $8 million in current year catastrophe losses, primarily related to Other Weather Related Events ($13 million), Earthquakes ($5 million) and Foreign Conflict ($1 million).
Refer to Catastrophe Events section above for further information on catastrophe losses by segment.
Segment Expenses. Commission and brokerage expenses decreased by 18.5% to $41 million for the three months ended June 30, 2026, compared to $50 million for the three months ended June 30, 2025, driven by the following:
•lower commission expense resulting from the continued runoff of the portfolio and related reduction in earned premium.
Commission and brokerage expenses decreased by 13.5% to $82 million for the six months ended June 30, 2026, compared to $95 million for the six months ended June 30, 2025, driven by the following:
•lower commission expense associated with the continued runoff of the portfolio and reduced earned premium volume.
Segment other underwriting expenses decreased by 44.8% to $64 million for the three months ended June 30, 2026, compared to $116 million for the three months ended June 30, 2025, driven by the following:
•lower expenses resulting from actions taken to streamline operations and reduce infrastructure supporting the runoff portfolio,
•reduced operational support and servicing costs as the portfolio continues to run off, and
•a $30 million benefit from transition service credits received from AIG as part of the sale transaction. These credits are expected to continue through the third quarter of 2026 and will cease thereafter.
Segment other underwriting expenses decreased by 41.2% to $129 million for the six months ended June 30, 2026, compared to $219 million for the six months ended June 30, 2025, driven by the following:
•lower expenses resulting from ongoing operational efficiency initiatives and infrastructure rationalization within the segment,
•the impact of the continued investment in insurance operations in the prior year period, which did not recur at the same level in the current year, and
•a $60 million benefit from transition service credits received from AIG as part of the sale of renewal rights transaction. These credits are expected to continue through the third quarter of 2026 and will cease thereafter.
Net Income (Loss).
Our net income was $559 million and $680 million for the three months ended June 30, 2026 and 2025, respectively. Our net income was $1.2 billion and $890 million for the six months ended June 30, 2026 and 2025, respectively. The period over period changes in net income were primarily driven by the financial component fluctuations explained above.
Shareholders’ Equity.
Shareholders’ equity decreased by $31 million to $15.4 billion at June 30, 2026 from $15.5 billion at December 31, 2025, principally, driven by the following:
•$725 million of share repurchases,
•$347 million change in unrealized depreciation on available for sale fixed maturity portfolio net of tax, due to change in interest rate environment,
•$158 million of shareholder dividends,
•$32 million of net foreign currency translation adjustments,
•offset by $20 million of share-based compensation transactions, and
•$1.2 billion of net income.
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Consolidated Investment Results
Net Investment Income.
Net investment income decreased by 1.6% to $523 million for the three months ended June 30, 2026, compared with net investment income of $532 million for the three months ended June 30, 2025, driven primarily by the following:
•a decline of $18 million in limited partnerships and other invested assets. 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, as well as
•a decline of $4 million in income from short-term investments and cash,
•offset by, an increase of $15 million in income from fixed maturity investments.
Net investment income increased by 6.6% to $1.1 billion for the six months ended June 30, 2026, compared with investment income of $1.0 billion for the six months ended June 30, 2025, driven by the following:
•an increase of $67 million in limited partnership income. The limited partnership income primarily reflects changes in reported net asset values. As such, until these asset values are monetized and the resultant income is distributed, they are subject to volatile results of future increases or decreases in the asset value,
•an increase of $22 million in income from fixed maturity investments, and
•an increase of $16 million in income from other alternative investments,
•offset by a decline of $26 million from short-term investments and cash.
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) 2026 2025 2026 2025
Fixed maturities $ 411 $ 396 $ 804 $ 782
Equity securities 1 1 3 2
Short-term investments and cash 29 33 56 82
Other invested assets
Limited partnerships 61 88 180 113
Other 31 22 68 52
Gross investment income before adjustments 533 541 1,109 1,031
Funds held interest income (expense) 5 2 9 14
Future policy benefit reserve income (expense) — — — —
Gross investment income 538 543 1,118 1,045
Investment expenses 15 11 28 22
Net investment income $ 523 $ 532 $ 1,091 $ 1,023
(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,
2026 2025 2026 2025
Annualized pre-tax yield on average cash and invested assets 4.6 % 4.9 % 4.8 % 4.7 %
Annualized after-tax yield on average cash and invested assets 3.8 % 3.9 % 4.0 % 3.9 %
Annualized return on invested assets 4.5 % 4.8 % 4.7 % 4.6 %
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Net Gains (Losses) on Investments.
The following table presents the composition of our net gains (losses) on investments for the periods indicated:
Three Months Ended June 30, Six Months Ended June 30,
(Dollars in millions) 2026 2025 Variance 2026 2025 Variance
Realized gains (losses) from dispositions:
Fixed maturity securities - available for sale
Gains $ 13 $ 5 $ 8 $ 27 $ 10 17
Losses (15) (13) (1) (45) (22) (23)
Total (2) (9) 7 (18) (12) (6)
Fixed maturity securities - held to maturity
Gains — — — — — —
Losses — — — — (1) 1
Total — — — — — —
Equity securities
Gains — — — — — —
Losses — — — — (1) 1
Total — — — — (1) 1
Short-Term Investments
Gains — — — — — —
Losses — — — — — —
Total — — — — — —
Total net realized gains (losses) from dispositions
Gains 13 5 8 27 10 17
Losses (15) (14) (1) (45) (23) (22)
Total (2) (8) 7 (18) (13) (5)
Allowance for credit losses (11) (2) (9) 2 (2) 5
Gains (losses) from fair value adjustments
Equity securities 5 5 — (1) 3 (5)
Total 5 5 — (1) 3 (5)
Total net gains (losses) on investments $ (8) $ (5) $ (2) $ (17) $ (12) $ (5)
(Some amounts may not reconcile due to rounding.)
Total net gains (losses) on investments during the three months ended June 30, 2026 primarily consist of an increase to the allowance for credit losses of $11 million, $2 million of losses due to the disposition of investments, partially offset by $5 million of gains from fair value adjustments on equity securities .
Total net gains (losses) on investments during the six months ended June 30, 2026 primarily relate to $18 million of net losses due to the disposition of investments, $1 million of losses from fair value adjustments on equity securities, partially offset by a decrease to the allowance for credit losses of $2 million.
FINANCIAL CONDITION
Investments. Total investments, including those held-for-sale, were $44.0 billion at June 30, 2026, a decrease of $143 million compared to $44.1 billion at December 31, 2025. The decrease in investments was primarily driven by:
•a decrease in short-term investments of $470 million,
•partially offset by, an increase in fixed maturities - available for sale due to an overall net purchase of $563 million,
•a net unrealized gain of $30 million, and
•a net increase in other invested assets of $14 million during the six months ended June 30, 2026.
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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 of the limited partnerships, which are primarily 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 June 30, 2026 At December 31, 2025
Fixed income portfolio duration (years) 3.5 3.4
Fixed income composite credit quality AA- AA-
Reinsurance Recoverables.
Reinsurance recoverables totaled $5.1 billion and $5.1 billion at June 30, 2026 and December 31, 2025, respectively. At June 30, 2026, $392 million, or 7.7%, was receivable from Mt. Logan Re collateralized segregated accounts; $327 million, or 6.4%, was receivable from Munich Reinsurance America, Inc. and $329 million, or 6.5% was receivable from Endurance Assurance Corporation.
At June 30, 2026, in connection with the ADC reinsurance agreements, $1.26 billion, or 24.7% was recoverable from State National Insurance Company, Inc. Additionally under the State National Reinsurance Agreement, $250 million of reinsurance premium was placed into a funds withheld collateral trust account as security for State National Reinsurer’s claim payment obligations to the Company.
No other retrocessionaire accounted for more than 5% of our recoverables.
Loss and LAE Reserves. Gross loss and LAE reserves totaled $34.7 billion and $34.3 billion at June 30, 2026 and December 31, 2025, 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 June 30, 2026
(Dollars in millions) Case Reserves IBNR Reserves Total Reserves % of Total
Reinsurance Treaty $ 6,376 $ 14,240 $ 20,616 59.4 %
Global Wholesale & Specialty 1,703 4,431 6,134 17.7 %
Legacy (1) 2,261 5,724 7,985 23.0 %
Total $ 10,340 $ 24,395 $ 34,735 100.0 %
(Some amounts may not reconcile due to rounding.)
(1) Reserves for A&E exposures are included within Legacy. At June 30, 2026, A&E case and IBNR reserves totaled $150 million and $46 million, respectively.
At December 31, 2025
(Dollars in millions) Case Reserves IBNR Reserves Total Reserves % of Total
Reinsurance Treaty $ 6,223 $ 13,830 $ 20,053 58.4 %
Global Wholesale & Specialty 1,715 4,220 5,935 17.3 %
Legacy (1) 2,264 6,060 8,324 24.3 %
Total $ 10,201 $ 24,110 $ 34,312 100.0 %
(Some amounts may not reconcile due to rounding.)
(1) Reserves for A&E exposures are included within Legacy. At December 31, 2025, A&E case and IBNR reserves totaled $150 million and $59 million, respectively.
Changes in premiums earned and business mix, reserve refinement, catastrophe losses, including losses related to the Middle East conflict, and changes in catastrophe loss reserves and claim settlement activity all impact loss and LAE reserves by segment and in total.
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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. Reserves are further reviewed by Everest’s Chief Reserving Actuary, Chief Actuary and senior management. The objective of such 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, which are subject to variation, which may be significant.
We are exposed to losses arising from unpredictable catastrophic events, including, but not limited to, weather-related and other natural catastrophes, as well as acts of terrorism, wars, pandemics, political instability and significant cyber or operational incidents, for which liabilities cannot be estimated using traditional reserving techniques. For example, we have exposure to losses due to the uncertainty regarding the current conflict in the Middle East. The Company’s loss and LAE reserves represent management’s current best estimate of the ultimate liability.
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 Legacy 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 June 30, At December 31,
(Dollars in millions) 2026 2025
Gross reserves $ 196 $ 209
Ceded reserves (15) (16)
Net reserves $ 180 $ 193
(Some amounts may not reconcile due to rounding.)
With respect to asbestos only, at June 30, 2026, we had net asbestos loss reserves of $158 million, or 87.8%, of total net A&E reserves, all of which was for assumed business. At June 30, 2026, we had gross asbestos loss reserves of $174 million, or 88.7% 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 4.3 years at June 30, 2026 and 4.7 years at December 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 June 30, 2026 and December 31, 2025 was $15.4 billion and $15.5 billion, respectively. Management’s objective in managing capital is to ensure that the Company’s overall capital level, as well as the capital
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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 (“BMA”) 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. Bermuda Re is subject to the Bermuda Solvency Capital Requirement (“BSCR”) administered by the BMA and Everest Re is subject to the RBC developed by the U.S. National Association of Insurance Commissioners (“NAIC”). As further described above and in Item 1A - Risk Factors, during the three months ended June 30, 2026, the BMA formally notified the Company of its group supervision by the BMA and the determination that Bermuda Re is the “designated insurer.” 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 actual and required statutory capital and surplus of Bermuda Re was as follows:
Bermuda Re
At December 31,
(Dollars in millions) 2025 2024
Statutory economic capital and surplus $ 5,415 $ 4,623
Required statutory capital and surplus (1) $ 2,532 $ 2,626
(1) The required statutory capital and surplus is calculated as the BSCR.
The regulatory targeted capital and the actual statutory capital for Everest Re was as follows:
Everest Re (1)
At December 31,
(Dollars in millions) 2025 2024
Actual capital $ 8,856 $ 8,126
Regulatory targeted capital $ 5,119 $ 4,799
(1) 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. We also monitor and project the regulatory capital at our operating subsidiaries. A key input to the economic models is projected income, and this input is continually compared to actual results, which may require a change in the capital strategy.
We 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, 2025 Form 10-K filing in Part 2, Item 7 (MD&A) in “Liquidity and Capital Resources” section. 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, 2025 Form 10-K, we reported that our projected net economic loss from our largest projected 100-year event represented approximately 11.0% of our December 31, 2025 shareholders’ equity. During the first half of 2026, 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 8.1% of our June 30, 2026 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, 2026.
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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 $ 1,121 $ 1,570 $ 1,837 $ 2,203 $ 2,480
California, Earthquake 235 971 1,396 1,808 2,087
Texas, Wind 280 667 1,138 1,671 2,265
The projected net 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 $ 770 $ 1,060 $ 1,249 $ 1,495 $ 1,679
California, Earthquake 184 705 997 1,294 1,497
Texas, Wind 209 489 810 1,151 1,585
Share repurchases and dividends.
To enhance long-term expected returns to our shareholders, for the three months ended June 30, 2026, we repurchased 1.2 million of our common shares at a cost of $395 million in the open market and paid $78 million in common share dividends. For the six months ended June 30, 2026, we repurchased 2.2 million of our common shares at a cost of $725 million in the open market and paid $158 million in common share dividends. During fiscal year 2025, we repurchased 2.4 million of our common shares at a cost of $797 million in the open market and paid $335 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 of directors (“Board”) authorization to repurchase up to 32 million of our shares was increased by 10 million shares to authorize the repurchase of up to 42 million shares. As of June 30, 2026, we had repurchased 35.8 million shares under this authorization. During the second quarter of 2026, the Company’s Board declared a quarterly common stock dividend of $2.00 per share. The common stock dividend was paid on June 26, 2026 for holders of record as of June 12, 2026.
Debt securities. 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 $939 million and $2.0 billion for the six months ended June 30, 2026 and 2025, respectively. Additionally, these cash flows reflected net catastrophe loss payments of $269 million and $481 million for the six months ended June 30, 2026 and 2025, respectively, and net tax payments of $143 million and $16 million for the six months ended June 30, 2026 and 2025, 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.
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
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of claims. At June 30, 2026 and December 31, 2025, we held cash and short-term investments of $3.6 billion and $4.3 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 June 30, 2026, we had $1.5 billion of fixed maturity securities - available for sale maturing within one year or less, $11.1 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, 2026, we had $403 million of net pre-tax unrealized depreciation related to fixed maturity - available for sale securities, comprised of $749 million of pre-tax unrealized depreciation and $346 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 June 30, 2026, Everest Re had statutory admitted assets of approximately $32.3 billion which provides borrowing capacity of up to approximately $3.2 billion. As of June 30, 2026, Everest Re had $1.0 billion of borrowings outstanding, which begin to expire in 2026. See Note 8 – 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.
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 $44.9 billion cash and invested assets portfolio at June 30, 2026 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 $8.5 billion of mortgage-backed securities in the $35.0 billion fixed maturity portfolio. Prepayment risk results from potential accelerated principal payments that shorten the average life, and thus, the expected yield of the security.
The table below displays the potential impact of fair value fluctuations and after-tax unrealized appreciation on our fixed maturity portfolio (including $2.5 billion of short-term investments as well as investments held-for-sale) 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
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currency, the effective duration of the involved portfolio of securities was used as a proxy for the fair value change under the various interest rate change scenarios.
Impact of Interest Rate Shift in Basis Points At June 30, 2026
-200 -100 0 100 200
(Dollars in millions)
Total Fair Value $ 40,295 $ 39,003 $ 37,698 $ 36,387 $ 35,075
Fair Value Change from Base (%) 6.9% 3.5% —% (3.5)% (7.0)%
Change in Unrealized Appreciation
After-tax from Base ($) $ 2,097 $ 1,054 $ — $ (1,059) $ (2,118)
We had $34.7 billion and $34.3 billion of gross reserves for losses and LAE as of June 30, 2026 and December 31, 2025, 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 3.7 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 $26.6 billion, representing approximately 71.0% 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 non-U.S. operations are the Canadian Dollar, the Singapore Dollar. the British Pound Sterling and the Euro. Generally, we mitigate foreign exchange exposure by matching the currency and duration of our assets to our corresponding operating liabilities. In accordance with GAAP, 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.