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SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT
 12 Months Ended
Dec. 31, 2023
Condensed Financial Information Disclosure [Abstract]  
SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT
SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT
CONDENSED BALANCE SHEETS
At December 31,
(Dollars in millions, except share amounts and par value per share)20232022
ASSETS:
Fixed maturities - available for sale (amortized cost: 2023, $0; 2022, $0)
$— $— 
Equity securities - at fair value18 12 
Other invested assets190 194 
Other invested assets, at fair value1,481 1,472 
Short-term investments139 30 
Cash1 2 
Total investments and cash1,829 1,710 
Investment in subsidiaries, at equity in the underlying net assets7,545 5,496 
Notes receivable - affiliated535 1,170 
Accrued investment income6 12 
Other assets1 — 
TOTAL ASSETS$9,916 $8,388 
LIABILITIES:
Senior notes$2,349 $2,347 
Long-term notes218 218 
Accrued interest on debt and borrowings18 17 
Income taxes142 144 
Due to affiliates3 7 
Total liabilities$2,729 $2,734 
STOCKHOLDER'S EQUITY:
Common stock, par value: $0.01; 3,000 shares authorized; 1,000 shares issued and outstanding (2023 and 2022)
— — 
Additional paid-in capital1,102 1,102 
Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) of $(76) at 2023 and $(225) at 2022
(287)(848)
Retained earnings6,372 5,400 
Total stockholder's equity7,187 5,654 
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY$9,916 $8,388 
See notes to consolidated financial statements
Years Ended December 31,
(Dollars in millions)202320222021
REVENUES:
Net investment income$19 $47 $39 
Net investment income - Affiliated67 57 34 
Net gains (losses) on investments10 (704)329 
Other income (expense)1 (3)— 
Net income (loss) of subsidiaries987 114 551 
Total revenues1,086 (488)954 
EXPENSES:
Interest expense104 97 69 
Corporate expense15 10 18 
Total expenses119 107 86 
INCOME (LOSS) BEFORE TAXES967 (595)867 
Income tax expense (benefit)(5)(150)68 
NET INCOME (LOSS)$972 $(445)$800 
Other comprehensive income (loss) of subsidiaries, net of tax561 (939)(177)
COMPREHENSIVE INCOME (LOSS)$1,533 $(1,384)$623 
See notes to consolidated financial statements.
Years Ended December 31,
(Dollars in millions)202320222021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)$972 $(445)$800 
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in (earnings) deficit of subsidiaries(987)(114)(551)
Dividends received from subsidiary— 250 — 
Increase (decrease) in income taxes(2)(173)(45)
Change in equity adjustments in limited partnerships(15)(37)(33)
Change in other assets and liabilities, net2 (5)40 
Net (gains) losses on investments(10)704 (329)
Net cash provided by (used in) operating activities(40)180 (118)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additional investment in subsidiaries(502)(200)88 
Proceeds from fixed maturities matured/called/repaid - available for sale— — — 
Proceeds from fixed maturities sold - available for sale— 244 — 
Proceeds from equity maturities sold— 652 243 
Distributions from other invested assets171 1,362 2,014 
Cost of fixed maturities acquired - available for sale— (134)(148)
Cost of equity securities acquired— (93)(516)
Cost of other invested assets acquired(156)(1,278)(2,076)
Net change in short-term investments(109)(24)5 
Proceeds from repayment of long term notes receivable - affiliated865 400 — 
(Issuance) of long term notes receivable - affiliated(230)(1,100)(470)
Net cash provided by (used in) investing activities39 (171)(860)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of senior notes— — 968 
Cost of debt repurchase— (6)— 
Net cash provided by (used in) financing activities— (6)968 
Net increase (decrease) in cash(1)2 (10)
Cash, beginning of period2 — 10 
Cash, end of period$1 $2 $— 
See notes to consolidated financial statements.
SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT
NOTES TO CONDENSED FINANCIAL INFORMATION
1.)The accompanying condensed financial information should be read in conjunction with the Consolidated Financial Statements and related notes of Everest Reinsurance Holdings, Inc. and its subsidiaries.
2.)The Senior Notes and Long-Term Subordinated Notes presented in Notes 7 and 8 are direct obligations of the Registrant.
3.)Effective May 2023, Everest Reinsurance Holdings, Inc. entered into a $230 million long-term promissory note with Everest Reinsurance Company, a subsidiary entity. The promissory note has an interest rate of 3.72% payable annually and is scheduled to mature on October 21, 2051. However, the note was paid off in full in May 2023 and is no longer outstanding as of December 31, 2023.
4.)Effective December 2022, Everest Reinsurance Holdings, Inc. entered into a $125 million long-term promissory note with Everest Group, Ltd., its parent. The promissory note has an interest rate of 4.34% payable annually and is scheduled to mature in June 2052. However, the note was paid off in full in May 2023 and is no longer outstanding as of December 31, 2023. At December 31, 2022, this transaction was included within notes receivable - affiliated in the condensed balance sheets of Everest Reinsurance Holdings, Inc.
5.)Effective September 2022, Everest Reinsurance Holdings, Inc. entered into a $560 million long-term promissory note with Everest Reinsurance Company, a subsidiary entity. The promissory note has an interest rate of 3.35% payable annually and is scheduled to mature in September 2052. Everest Reinsurance Company has repaid $270 million of the promissory note to Everest Reinsurance Holdings, Inc. in December 2023 which leaves $290 million outstanding as of December 31, 2023. At December 31, 2023, this transaction was included within notes receivable - affiliated in the condensed balance sheets of Everest Reinsurance Holdings, Inc.
6.)Effective June 2022, Everest Reinsurance Holdings, Inc. entered into a $215 million long-term promissory note with Everest Group, Ltd., its parent entity. The promissory note has an interest rate of 3.11% payable annually and is scheduled to mature in June 2052. However, the note was paid off in full in May 2023 and is no longer outstanding as of December 31, 2023. At December 31, 2022, this transaction was included within notes receivable - affiliated in the condensed balance sheets of Everest Reinsurance Holdings, Inc.
7.)Effective May 2022, Everest Reinsurance Holdings, Inc. entered into a $200 million long-term promissory note with Everest Reinsurance Company, a subsidiary entity. The promissory note has an interest rate of 3.25% payable annually and is scheduled to mature on October 21, 2051. At December 31, 2023 and 2022, this transaction was included within notes receivable - affiliated in the condensed balance sheets of Everest Reinsurance Holdings, Inc.
8.)Effective October 21, 2021, Everest Reinsurance Holdings, Inc. entered into a $470 million long-term promissory note with Everest Reinsurance Company, a subsidiary entity. The promissory note has an interest rate of 3.25% payable annually and is scheduled to mature on October 21, 2051. Everest Reinsurance Company has repaid $425 million of the promissory note to Everest Reinsurance Holdings, Inc., leaving $45 million of the promissory note still outstanding as of December 31, 2023.
9.)In December, 2015, Holdings transferred the 9,719,971 Common Shares of Group, which it held as other invested assets, at fair value, valued at $1.8 billion, to Preferred Holdings, an affiliated entity and subsidiary of Group, in exchange for 1,773.214 preferred shares of Preferred Holdings with a $1 million par value and 1.75% annual dividend rate. After the exchange, Holdings no longer holds any shares or has any ownership interest in Group.