Everest Re : 2021 Everest Re Global Triangles

EVEREST RE GROUP, LTD.

2021 LOSS DEVELOPMENT TRIANGLES

Loss Development Triangle Cautionary Language

This report is for informational purposes only. It is current as of December 31, 2021. Everest Re Group, Ltd. ("Everest", "we", "us", or "the Company") is under no obligation and does not expect to update or revise this report whether as a result of new information, future events or otherwise, even when such new data has been reflected in the Company's filings with the U.S. Securities and Exchange Commission (the "SEC") or otherwise. Although the underlying data in the loss development patterns disclosed in this report are an important factor in the process used to estimate loss reserve requirements, they are not the only factors considered in establishing reserves. The process for establishing reserves is subject to considerable variability and requires the use of informed estimates and judgments. Important details, such as specific loss development expectations for particular contracts, years, or events, cannot be developed solely by analyzing the information provided in this report. In addition to analyzing loss development information, management incorporates additional information into the reserving process, such as pricing for insurance and reinsurance products; geographic, coverage, and other class differences; as well as assumptions about current market conditions. Readers must keep these and other qualifications more fully described in this report in mind when reviewing this information. This report should be read in conjunction with other documents filed by Everest with the SEC, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. These materials shall not be incorporated by reference into any of the Company's filings under the Securities Act of 1933, as amended, or the Securities Act of 1934, as amended.

Safe Harbor for Forward-Looking Statements

Some of the statements in this report contain forward-looking statements within the meaning of the U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. Federal securities laws. These statements involve risks and uncertainties that could cause actual results to differ materially from those contained in forward- looking statements made on behalf of the Company. These risks and uncertainties include the impact of general economic conditions and conditions affecting the insurance and reinsurance industry, the adequacy of our reserves, our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, investment market fluctuations, trends in insured and paid losses, catastrophes, regulatory and legal uncertainties and other factors described in our latest Annual Report on Form 10-K. In some cases, these statements can be identified by the use of forward-looking words such as "may", "will", "should", "could", "anticipate", "estimate", "expect", "plan", "believe", "predict", "potential" and "intend". Forward-looking statements contained in this report include information regarding our reserves for losses and LAE or estimates of our catastrophe exposures. Forward-looking statements only reflect our expectations and are not guarantees of performance. These statements involve risks, uncertainties and assumptions. Actual events or results may differ materially from our expectations. Important factors that could cause our actual events or results to be materially different from our expectations include those discussed in our latest Annual Report on Form 10-K. The Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

EVEREST RE GROUP, LTD.

2021 LOSS DEVELOPMENT TRIANGLES

Table of Contents

Introduction ………………………………………………………………………………......	1
Data …………………………………………………………………………………………...	1
Catastrophes and Large Losses …………………………………………………………...	2
COVID-19 ….……………………………………………………………………………..	3
Currency …………………………………………………………………………………..	3
Excluded Business ………………………………………………………………………...	3
Discounting ………………………………………………………………………………..	4
Reserve Class Descriptions
Reinsurance Classes ………………………………………………………………………	4
Insurance Classes ………………………………………………………………………….	6
Reserving Methodology ……………………………………………………………………...	8
Reconciliation
Reconciliation of Net Reserves …………………………………………………………...	10
Reconciliation to 2020 Loss Development Triangles ..…………………………………...	10
Exhibits ……………………………………………………………………………………….	23

INTRODUCTION

This is Everest Re Group's twelfth annual publication of its global loss development triangles. These triangles provide additional detail on Everest's reserves as shown in its financial statements as of December 31, 2021. For reinsurance business, triangles are presented on an underwriting year basis, net of specific cessions and external corporate covers, for both paid loss and allocated loss adjustment expense (ALAE) and reported loss and ALAE. For insurance business except construction liability, triangles are presented on an accident year basis, net of external reinsurance, for both paid loss and ALAE and reported loss and ALAE. Construction liability insurance triangles are presented on a report year basis, net of external reinsurance, for both paid loss and ALAE and reported loss and ALAE. Intercompany reinsurance transactions are not reflected in the triangles.

It is strongly advised that readers of this report do not attempt to project ultimate loss and ALAE for Everest based solely on the triangles provided. Doing so would not appropriately account for the true nature of the underlying liabilities and would likely result in projections that could be materially misleading. Loss payment patterns and loss reporting patterns derived from development triangles are only two of many factors considered in establishing loss reserves. Additional information including but not limited to pricing, market conditions, changes in terms and conditions, changes in premium volume, and changes in mix of business are also factored in to determine a range of reasonable results. The triangles presented here are an aggregation of approximately 200 triangles used by our actuaries to evaluate reserves. This aggregation will result in the masking of trends and development patterns which are apparent in the more detailed triangles used to evaluate reserves.

DATA

Loss and ALAE development triangles are provided for nine classes, four for reinsurance business and five for insurance business. The reserves included in the triangles increased from $12.6 billion as of December 31, 2020 to $14.9 billion as of December 31, 2021. The percent of total reserves this represents remains consistent with last year; 87% in 2020 and 87% in 2021. Excluding reserves for catastrophes and asbestos and environmental exposures, the nine classes in the triangles cover 97% of Everest's reserves, consistent with 97% in 2020.

The triangles presented are compiled from roughly 200 individual reserving groups. The nine classes are:

Reinsurance Classes:

• Worldwide Casualty Pro Rata Reinsurance
• Worldwide Casualty Excess of Loss Reinsurance
• Worldwide Property Pro Rata Reinsurance (excluding catastrophes)
• Worldwide Property Excess of Loss Reinsurance (excluding catastrophes)

Insurance Classes:

• Worldwide Casualty Primary Insurance
• Worldwide Casualty Excess Insurance
• Worldwide Property Insurance (excluding catastrophes)
• Worldwide Workers Compensation Insurance
• Worldwide Construction Liability Insurance

Triangles are presented for loss and ALAE combined for all classes. Triangles for our reinsurance business are presented on an underwriting year basis. We rely primarily on underwriting year data for our

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internal reinsurance reserve analyses as accident year is not generally available for contracts written on a pro rata basis. Underwriting year refers to the year in which a contract incepts. Accident year refers to the year in which a claim occurs. One underwriting year will generally incorporate claims from multiple accident years. Reinsurance contracts written on a treaty basis are combined with those written as facultative certificates. Each reinsurance class includes business emanating from Everest branches and offices covering geographic areas around the world.

Summary exhibits for each reinsurance class and all reinsurance classes combined are also presented. These exhibits display ultimate premium, earned premium, paid loss and ALAE, loss and ALAE case reserves, and reported loss and ALAE by underwriting year. Incurred but not reported (IBNR) loss and ALAE, ultimate loss and ALAE, and the ultimate loss and ALAE ratio for all years combined are also shown.

Triangles for our insurance business are presented on an accident year basis, except for construction liability, which is presented on a report year basis. Report year refers to the year in which a claim is reported to Everest regardless of date of loss. We rely primarily on accident year data for our internal insurance reserve analyses. Because this business is written direct, more information is available compared to the reinsurance business. Business written on a program basis through managing general agents (MGAs) is combined with business written through direct channels. Claims for much of the business written through MGAs, as well as some business written through direct channels, are adjusted and settled by third party administrators (TPAs). These TPAs are managed and overseen by internal Everest Claims staff. These claims are combined in the triangles with claims adjusted and settled directly by Everest's Claims staff.

Summary exhibits for each insurance class and all insurance classes combined excluding Worldwide Construction Liability are also presented. These exhibits display written premium, earned premium, paid loss and ALAE, loss and ALAE case reserves, and reported loss and ALAE by accident year. Loss and ALAE IBNR, ultimate loss and ALAE, and the ultimate loss and ALAE ratio for all years combined are also shown.

If not otherwise specified, the term loss as used in this report means loss and ALAE but does not include unallocated loss adjustment expense (ULAE).

Catastrophes and Large Losses

Everest defines a catastrophe to be an event which causes damage to multiple risks resulting in at least $10 million of loss and ALAE to Everest. Events are defined as catastrophe or non-catastrophe based on the definition in effect at the time the event occurred. A catastrophe can be natural, such as an earthquake or hurricane, or man-made, such as a terrorist attack.

Catastrophe losses for underwriting year 1993 and later have been removed from the Worldwide Property Pro Rata Reinsurance and Worldwide Property Excess of Loss Reinsurance triangles. Catastrophe losses for accident year 2011 and later have been removed from the Worldwide Property Insurance triangles.

There were no earlier catastrophe events which impacted the insurance triangles. Large losses, regardless of size, which are not categorized as catastrophe events have not been removed from any of the reinsurance or insurance triangles.

The table below shows the ultimate catastrophe loss and ALAE and outstanding catastrophe reserves by accident year for all accident years with outstanding catastrophe reserves:

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