Everest Re : Dated February 9, 2022 - Form 8-K

1

N

EWS

R

ELEASE

EVEREST RE GROUP,LTD.

Seon Place, 141 Front Street, 4

th

Floor, Hamilton HM 19, Bermuda

Contacts

Media: Dawn LauerInvestors: Jon Levenson

Chief Communications OfficerHead of Investor Relations

Everest Global Services, Inc.Everest Global Services, Inc.

908.300.7670908.604.3169

Everest Re Group Reports Fourth Quarter and Full Year2021 Results

25% Growth in Gross Written Premiumand a 91.9% Combined Ratio for the Quarter

$431 Million of Net Income for the Quarter and a 14.7% TotalShareholder Return for the Year

HAMILTON,Bermuda --(BUSINESS WIRE)- February9, 2022- Everest Re Group, Ltd. ("Everest" or

the "Group")today reported its fourth quarter and full year 2021 results.

Fourth Quarter 2021 Highlights

●

Yearoveryeargrosswrittenpremium("GWP")growthof25%fortheGroup,26%for

Reinsurance and 21% for Insurance

●

Combined ratio of 91.9% for the Group, 91.5% for Reinsurance and 92.8% for Insurance

●

Attritional combined ratios of 87.4% for the Group,86.4% for the Reinsurance segment and 90.4%

for Insurance

●

Pre-taxunderwritingincomeof$228millionincludingpre-taxcatastrophelossesnetof

reinsurance and reinstatement premiums of $125 million

●

Pre-taxnetinvestmentincomeof$205million,wellbalancedbetweenfixedincomeandlimited

partnership returns

●

$1.0 billion in 31-year, 3.125% coupon senior notes issued on October 4,2021

2

Full Year2021 Highlights

●

Net income of $1.380 billion representing a total shareholder return of 14.7%

●

Pre-tax netinvestment incomeof $1.165billion, wellbalanced betweenfixed incomeand limited

partnership returns

●

Pre-taxunderwritingincomeof$224millioninclusiveofpre-taxcatastrophelossesnetof

reinsurance and reinstatement premiums of $1.065 billion

●

$13.0 billion in total 2021 GWP.$9 billion reinsurance and $4 billion insurance

●

Yearoveryeargrosswrittenpremium("GWP")growthof25%fortheGroup,25%for

Reinsurance, and 24% for Insurance

●

Attritional combined ratios of 87.6% for the Group,86.3% for the Reinsurance segment and 91.2%

for Insurance.

●

Operating cash flow of $3.8 billion

●

Commonsharerepurchasesof$25millionduringthequarterand$225millionforthefullyear

2021

Everest Re Group President & CEO Juan C. Andrade commented on the Company'sresults:

"2021 was a pivotal year of continued profitable growth and momentum for Everest. Wefinished the year

with a strong quarter and achieved record growth in both our underwriting businesses, drove expanding

margins, solid underwriting profitability in an elevated natural catastrophe year,and generated exceptional

investment income. These results led to $1.4 billion in net income for the year,and a milestone 14.7% total

shareholder return. 2021 demonstrated the strong earnings power of our diversified franchises to create

value for our shareholders.With a more profitable book of business coming out of a well-executed

January 1 reinsurance renewal season, an expanding global value proposition, a strong balance sheet, and

exceptional talent, we enter 2022 well-positioned to deliver on our long-term strategic objectives."

Summary of Fourth Quarter 2021 Net Income and Other Items

●

Net income of $431million, equal to $10.94per diluted share vs.net income of $64million, equal

to $1.59 per diluted share in the fourth quarter 2020

●

Net operating income $359 million, equal to $9.12 per dilutedshare vs. net operating income (loss)

of $(44) million, equal to $(1.12) per share in the fourth quarter 2020

●

Underwritinggain of$228 millionincluding $125million ofcatastrophelosses netof recoveries

andreinstatementpremiums.CatastropheeventscomprisedofCanadiandroughtlossesof$80

million and

3

quad-state tornado losses of $45 million.

●

GAAP combinedratio of91.9% whichincludes 4.5pointsof catastrophelosses vs.2.9 pointsof

catastrophe losses in the same period during 2020

●

No change to Covid-19 Pandemic ("Pandemic") ultimate loss provision of $511 million

●

Operating cashflow for the quarter of $1.04 billion vs $683 million in the same period during 2020.

The following table summarizes the Company's net income and related financialmetrics.

Net income and operating income

Q4

Yearto Date

Q4

Yearto Date

All values in USD millions except for per share

2021

2021

2020

2020

Everest Re Group

Net income

430.7

1,379.1

63.6

514.1

Net operating income (loss)

359.2

1,153.9

(44.2)

300.1

Net income per diluted common share

10.94

34.62

1.59

12.78

Net operating income per diluted common share

9.12

28.97

(1.12)

7.46

Net income annualized return on average equity

17.7%

14.6%

2.8%

5.8%

Net operating income annualized return on average equity

14.8%

12.2%

-2.0%

3.4%

Period end equity and book value

Q4 2021

Yearto Date

Shareholders' equity

10,139.2

Book value per share

258.21

Change in BVPS adjusted for dividends

8.7%

Total Shareholder Return ("TSR") - Annualized

14.7%

Notes

1/ Refer to the reconciliation of net income to net operating income found on page 8 of this press release

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The following information summarizes the Company's underwriting results, on a consolidated basis and by

segment - Reinsurance and Insurance, with selected commentary on results by segment.

Underwriting information - Everest Re Group

Q4

Year to Date

Q4

Year to Date

Year on YearChange

All values in USD millions except for percentages

2021

2021

2020

2020

Q4

Year to Date

Gross written premium

3,430.6

13,049.8

2,750.5

10,482.4

24.7%

24.5%

Net written premium

3,056.4

11,445.5

2,449.3

9,117.0

24.8%

25.5%

Loss ratio

64.9%

71.0%

82.5%

75.5%

(17.6) pts

(4.5) pts

Commission and brokerage ratio

21.3%

21.2%

21.4%

21.6%

(0.1) pts

(0.4) pts

Other underwriting expenses

5.7%

5.6%

5.2%

5.8%

0.5 pts

(0.2) pts

Combined ratio

91.9%

97.8%

109.1%

102.9%

(17.2) pts

(5.1) pts

Attritional combined ratio

87.4%

87.6%

86.3%

87.5%

1.1 pts

0.1 pts

Pre-tax net catastrophe losses

125.0

1,065.0

70.0

415.0

Pre-tax net covid losses

-

-

76.1

511.1

Pre-tax net prior year reserve development

(3.0)

(9.1)

400.0

401.4

Notes

1/ Attritional ratios exclude prior year reserve development, Covid-19 pandemic impacts, catastrophe losses, and reinstatement premiums

2/Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums

Reinsurance Segment - Quarterly Highlights

●

Reinsuranceachievedexcellentgrowthinthequarter,up26%yearoveryearto$2.4billion.The

growthwasdrivenbycontinuedpartnershipwithourcoreclientsandEverest'spositionasa

preferredreinsurer,acceleratedbystrongunderlyingratemovement.Ourinternationaloperations,

notably Europe, lead the growththis quarter as we sawincreased demand for casualty andmulti-line

quota share treaties in those territories.

●

The attritional combined ratio for the quarter of 86.4% reflects the continued strong performance of

our portfolio, the successful execution of our strategy to participate in growth and margin

improvement in the casualty market, and our continued expense discipline

●

Canada suffered a widespread drought causing one of the largest P&C losses in Canadian history,

nearly $6B USD, resulting in an $80 million net catastrophe impact to our reinsurance segment

results.Everest is a leading reinsurer in Canada, and we have profitably underwritten the Canadian

crop market for years. We viewthis as an attractive long-term business.

5

Underwriting information - Reinsurance segment

Q4

Year to Date

Q4

Year to Date

Year on YearChange

All values in USD millions except for percentages

2021

2021

2020

2020

Q4

Year to Date

Gross written premium

2,371.7

9,067.3

1,878.6

7,281.7

26.2%

24.5%

Net written premium

2,269.8

8,535.6

1,793.5

6,767.6

26.6%

26.1%

Loss ratio

64.8%

71.6%

86.9%

76.3%

(22.1) pts

(4.7) pts

Commission and brokerage ratio

24.1%

23.9%

23.3%

24.0%

0.8 pts

(0.1) pts

Other underwriting expenses

2.6%

2.6%

2.2%

2.7%

0.4 pts

(0.1) pts

Combined ratio

91.5%

98.1%

112.4%

103.0%

(20.9) pts

(4.9) pts

Attritional combined ratio

86.4%

86.3%

83.9%

85.2%

2.5 pts

1.1 pts

Pre-tax net catastrophe losses

110.0

912.5

60.0

347.0

Pre-tax net covid losses

-

-

56.1

407.1

Pre-tax net prior year reserve development

(3.0)

(7.9)

400.0

396.9

Notes

1/ Attritional ratios exclude prior year reserve development, Covid-19 pandemic impacts, catastrophe losses, and reinstatement premiums

2/Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums

Insurance Segment - Quarterly Highlights

●

Everest Insurance delivered strong growth during the fourth quarter of 2021, with the third

consecutive quarter of gross written premium above $1.0 billion. This growth was driven primarily

by strong new business generation, notably in casualty and professional liability lines. Exposure

growth from the economic recovery and continued double digit rate increases also contributed

meaningfully to growth in the quarter.

●

Underwriting margins improved year over year with a combined ratio of 92.8% and an attritional

combined ratio of 90.4% (the lowest achieved to date). The loss ratio, commission ratio and expense

ratio all improved year over year, reflecting disciplined execution and intentional portfolio

management

●

Insurancesegmentcatastrophelossestotaled$15millionnetofrecoveriesandreinstatement

premiums for the quarter, all from the quad-state tornados.

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Underwriting information - Insurance segment

Q4

Year to Date

Q4

Year to Date

Year on YearCgange

All values in USD millions except for percentages

2021

2021

2020

2020

Q4

Year to Date

Gross written premium

1,058.9

3,982.5

871.9

3,200.6

21.4%

24.4%

Net written premium

786.6

2,909.9

655.8

2,349.4

19.9%

23.9%

Loss ratio

65.1%

69.3%

68.9%

73.0%

(3.8) pts

(3.7) pts

Commission and brokerage ratio

13.4%

13.4%

15.6%

14.5%

(2.2) pts

(1.1) pts

Other underwriting expenses

14.4%

14.5%

14.5%

15.1%

(0.1) pts

(0.6) pts

Combined ratio

92.8%

97.1%

99.0%

102.6%

(6.1) pts

(5.4) pts

Attritional combined ratio

90.4%

91.2%

93.8%

94.2%

(3.4) pts

(3.0) pts

Pre-tax net catastrophe losses

15.0

152.5

10.0

68.0

Pre-tax net covid losses

-

-

20.0

104.0

Pre-tax net prior year reserve development

-

(1.2)

-

4.6

Notes

1/ Attritional ratios exclude prior year reserve development, Covid-19 pandemic impacts, catastrophe losses, and reinstatement premiums

2/Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums

Investments and Shareholders' Equity

●

Totalinvested assets and cash of $29.7 billionat December 31, 2021 reflecting 16.5% growth versus

the year end 2020 value of $25.5 billion

●

Shareholders' equity of $10.1 billion at December 31, 2021 vs. $9.7 billion at year end 2020

●

Book value per diluted share of $258.21 at December 31, 2021 vs. $243.25 at year end 2020

●

Bookvalueperdilutedshareexcludingunrealizedgains(losses)onfixedincomeinvestmentsof

$252.12 at December 31, 2021 vs. $225.15 at year end 2020

●

Commonsharedividends declaredand paidinthe quarterof $1.55per shareequal to$61million,

and $6.20 for the year equal to $247 million

●

Commonsharerepurchasesof$25millionduringthequarter,representing96,702sharesatan

averagepriceof$259.28pershare.Forthefullyear2021,commonsharerepurchasesof$225

million representing 887,622 shares at an average price of $253.64.

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Equity and Book Value per Share

Q4

Yearto Date

Q4

Yearto Date

All values in USD millions except for per share amounts

2021

2021

2020

2020

Beginning shareholders' equity

9,978.6

9,726.2

9,591.3

9,132.9

Net income

430.7

1,379.1

63.6

514.2

Change-unrealized gains (losses) - Fixed inc. investments

(176.8)

(484.8)

71.2

419.7

Dividends to shareholders

(61.0)

(246.7)

(61.9)

(249.1)

Purchase of treasury shares

(25.1)

(225.1)

-

(200.0)

Other

(7.2)

(9.5)

62.0

108.5

Ending shareholders' equity

10,139.2

10,139.2

9,726.2

9,726.2

Common shares outstanding

39.27

39.98

Book value per common share outstanding

258.21

243.25

Less: Unrealized on fixed inc. investments ("URAD")

6.09

18.10

Book value excl. URAD per common share outstanding

252.12

225.15

Common share dividends paid - last 12 months

6.20

6.20

Thisnewsreleasecontainsforward-lookingstatementswithinthemeaningoftheU.S.federalsecurities

laws. Weintend theseforward-lookingstatements tobe coveredby thesafe harborprovisionsfor forward-

looking statements in theU.S. Federal securities laws.These statements involve risksand uncertainties that

could causeactual resultsto differmaterially fromthose containedin forward-lookingstatements madeon

behalf of the Company. These risks and uncertainties include the impact of general economic conditions and

conditionsaffectingtheinsuranceandreinsuranceindustry,theadequacyofourreserves,ourabilityto

assess underwritingrisk, trendsin ratesfor propertyand casualtyinsurance andreinsurance,competition,

investmentmarketandinvestmentincomefluctuations,trendsininsuredandpaidlosses,catastrophes,

pandemic,regulatoryandlegaluncertaintiesandotherfactorsdescribedinourlatestAnnualReporton

Form10-K.TheCompanyundertakesnoobligationtopubliclyupdateorreviseanyforward-looking

statements, whether as a result of new information, future events or otherwise.

About Everest Re Group, Ltd.

Everest Re Group, Ltd.("Everest") is a leadingglobal provider of reinsuranceand insurance, operating for

closeto50yearsthroughsubsidiariesintheU.S.,Europe,Singapore,Canada,Bermuda,andother

territories.

Everest offersproperty,casualty,and specialtyproducts throughits variousoperating affiliateslocated in

key markets around the world.

Everest common stock (NYSE:RE) is a component of the S&P 500 index.

8

AdditionalinformationaboutEverest,ourpeople,andourproductscanbefoundonourwebsiteat

www.everestre.com

. All issuing companies may not do business in all jurisdictions.

A conference call discussingthe fourth quarter results will be held at 8:00 a.m. Eastern Time on February 10,

2022.The callwill beavailableon theInternetthroughthe Company'sweb siteat everestre.com/investors.

Recipients are encouragedto visit the Company'sweb site to viewsupplementalfinancial informationon the

Company'sresults.Thesupplementalinformationislocatedat

www.everestre.com

inthe

"Investors/Financials/QuarterlyResults" section of thewebsite.The supplemental financial informationmay

also beobtainedby contactingthe Companydirectly.

_______________________________________________

The Companygenerally usesafter-tax operatingincome (loss),a non-GAAPfinancial measure,to evaluate

itsperformance.After-taxoperatingincome(loss)consistsofnetincome(loss)excludingafter-taxnet

realizedcapitalgains(losses)andafter-taxnetforeignexchangeincome(expense)asthefollowing

reconciliation displays:

Three Months Ended December 31,

Twelve Months Ended December 31,

(Dollars in thousands, except per share amounts)

2021

2020

2021

2020

(unaudited)

(unaudited)

Per Diluted

Per Diluted

Per Diluted

Per Diluted

Amount

Share

Amount

Share

Amount

Share

Amount

Share

Net income (loss)

$430,707

$10.94

$63,601

$1.59

$1,379,083

$34.62

$514,151

$12.78

After-tax net realized capital gains (losses)

$90,306

$2.29

$149,950

$3.74

$201,503

$5.06

$217,017

$5.39

After-tax net foreign exchange income (expense)

($18,819)

($0.48)

($42,165)

($1.05)

$23,707

$0.60

($2,932)

($0.07)

After-tax operating income (loss)

$359,220

$9.12

($44,184)

($1.12)

$1,153,873

$28.97

$300,066

$7.46

(Some amounts may not reconcile due to rounding.)

Although netrealized capitalgains (losses)and netforeign exchangeincome (expense)are anintegral part

of theCompany'sinsurance operations,the determinationof netrealized capitalgains (losses)and foreign

exchangeincome (expense)is independentof theinsurance underwritingprocess.The Companybelieves

thatthelevelofnetrealizedcapitalgains(losses)andnetforeignexchangeincome(expense)forany

particularperiodisnotindicativeoftheperformanceoftheunderlyingbusinessinthatparticularperiod.

Providing onlya GAAPpresentation ofnet income(loss) makesit moredifficultfor usersof thefinancial

information toevaluate theCompany'ssuccess orfailure inits basicbusiness andmay leadto incorrector

misleading assumptions and conclusions.The Company understands that the equity analysts who follow the

Company focuson after-taxoperating income(loss) intheir analysesfor thereasons discussedabove.The

Company

9

provides after-taxoperating income (loss)to investors sothat they havewhat management believesto be a

useful supplement to GAAP information concerning the Company's performance.

--FinancialDetailsFollow--

10

EVEREST RE GROUP,LTD.

CONSOLIDATEDSTATEMENTSOF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

(Dollars in thousands, except per share amounts)

2021

2020

2021

2020

(unaudited)

(unaudited)

REVENUES:

Premiums earned

$2,803,801

$2,396,483

$10,406,441

$8,681,513

Net investment income

204,625

222,349

1,164,892

642,465

Net realized capital gains (losses):

Credit allowances on fixed maturity securities

2,242

17,896

(27,992)

(1,745)

Other net realized capital gains (losses)

116,912

165,490

285,935

269,394

Total net realized capital gains (losses)

119,154

183,386

257,943

267,649

Other income (expense)

(7,203)

(40,819)

36,987

6,487

Total revenues

3,120,377

2,761,399

11,866,263

9,598,114

CLAIMS AND EXPENSES:

Incurred losses and loss adjustment expenses

$1,819,392

$1,976,771

$7,391,253

$6,550,837

Commission, brokerage, taxes and fees

597,671

513,080

2,208,766

1,873,250

Other underwriting expenses

158,422

125,372

582,647

511,237

Corporate expenses

21,464

11,934

67,827

41,118

Interest, fees and bond issue cost amortization expense

23,364

14,847

70,149

36,323

Total claims and expenses

2,620,313

2,642,004

10,320,642

9,012,765

INCOME (LOSS) BEFORE TAXES

500,064

119,395

1,545,621

585,349

Income tax expense (benefit)

69,357

55,794

166,538

71,198

NET INCOME (LOSS)

$430,707

$63,601

$1,379,083

$514,151

Other comprehensive income (loss), net of tax:

Unrealized appreciation (depreciation) ("URA(D)") on securities arising

during the period

(183,914)

87,375

(488,378)

423,210

Reclassification adjustment for realized losses (gains) included in net

income (loss)

7,080

(16,165)

3,616

(3,476)

Total URA(D) on securities arising duringthe period

(176,834)

71,210

(484,762)

419,734

Foreign currency translation adjustments

(33,204)

55,937

(62,091)

86,327

Benefit plan actuarial net gain (loss) for the period

6,250

(5,615)

6,250

(5,615)

Reclassification adjustment for amortization of net (gain) loss included

in net income (loss)

11,579

1,768

17,228

6,300

Total benefit plan net gain (loss) for the period

17,829

(3,847)

23,478

685

Total other comprehensive income (loss), net of tax

(192,209)

123,300

(523,375)

506,746

COMPREHENSIVE INCOME (LOSS)

$238,498

$186,901

$855,708

$1,020,897

EARNINGS PER COMMON SHARE:

Basic

$10.95

$1.59

$34.66

$12.81

Diluted

10.94

1.59

34.62

12.78

11

EVEREST RE GROUP,LTD.

CONSOLIDATEDBALANCE SHEETS

December 31,

December 31,

(Dollars and share amounts in thousands, except par value per share)

2021

2020

(unaudited)

ASSETS:

Fixed maturities - available for sale, at market value

(amortized cost: 2021, $22,063,592; 2020, $19,225,067, credit allowances: 2021, ($29,738); 2020,

($1,745))

$22,308,272

$20,040,173

Equity securities, at fair value

1,825,908

1,472,236

Short-term investments (cost: 2021, $1,178,386; 2020, $1,135,088)

1,178,337

1,134,950

Other invested assets

2,919,965

2,012,581

Cash

1,440,861

801,651

Total investments and cash

29,673,343

25,461,591

Accrued investment income

149,105

141,304

Premiums receivable

3,293,598

2,680,562

Reinsurance recoverables

2,053,354

1,994,555

Funds held by reinsureds

868,601

716,655

Deferred acquisition costs

872,289

622,053

Prepaid reinsurance premiums

515,445

412,015

Income taxes

2,381

17,253

Other assets

757,167

665,515

TOTAL ASSETS

$38,185,283

$32,711,503

LIABILITIES:

Reserve for losses and loss adjustment expenses

19,009,486

16,322,143

Future policy benefit reserve

35,669

37,723

Unearned premium reserve

4,609,634

3,501,359

Funds held under reinsurance treaties

18,391

15,807

Other net payable to reinsurers

449,723

294,347

Losses in course of payment

260,684

127,971

Senior notes

2,345,800

1,376,718

Long term notes

223,774

223,674

Borrowings from FHLB

519,000

310,000

Accrued interest on debt and borrowings

17,348

10,460

Unsettled securities payable

16,698

206,693

Other liabilities

539,896

558,432

Total liabilities

28,046,103

22,985,327

SHAREHOLDERS' EQUITY:

Preferred shares, par value: $0.01; 50,000 shares authorized;

no shares issued and outstanding

-

-

Common shares, par value: $0.01; 200,000 shares authorized; (2021) 69,790

and (2020) 69,620 outstanding before treasury shares

698

696

Additional paid-in capital

2,274,431

2,245,301

Accumulated other comprehensive income (loss), net of deferred income tax expense

(benefit) of $26,781 at 2021 and $80,451 at 2020

11,523

534,899

Treasury shares, at cost; 30,524 shares (2021) and 29,636 shares (2020)

(3,847,308)

(3,622,172)

Retained earnings

11,699,836

10,567,452

Total shareholders' equity

10,139,180

9,726,176

TOTAL LIABILITIES AND SHAREHOLDERS'EQUITY

$38,185,283

$32,711,503

12

EVEREST RE GROUP,LTD.

CONSOLIDATEDSTATEMENTSOF CASH FLOWS

Twelve Months Ended

December 31,

(Dollars in thousands)

2021

2020

(unaudited)

CASH FLOWS FROM OPERATINGACTIVITIES:

Net income (loss)

$1,379,083

$514,151

Adjustments to reconcile net income to net cash provided by operating activities:

Decrease (increase) in premiums receivable

(648,735)

(387,123)

Decrease (increase) in funds held by reinsureds, net

(151,028)

(219,321)

Decrease (increase) in reinsurance recoverables

(124,796)

(150,753)

Decrease (increase) in income taxes

68,148

239,883

Decrease (increase) in prepaid reinsurance premiums

(127,792)

55,334

Increase (decrease) in reserve for losses and loss adjustment expenses

2,805,064

2,631,016

Increase (decrease) in future policy benefit reserve

(2,054)

(4,869)

Increase (decrease) in unearned premiums

1,145,512

404,049

Increase (decrease) in other net payable to reinsurers

185,764

(24,163)

Increase (decrease) in losses in course of payment

133,700

74,759

Change in equity adjustments in limited partnerships

(612,569)

(103,772)

Distribution of limited partnership income

211,367

122,326

Change in other assets and liabilities, net

(289,562)

(99,171)

Non-cash compensation expense

43,406

39,209

Amortization of bond premium (accrual of bond discount)

75,777

49,673

Net realized capital (gains) losses

(257,943)

(267,649)

Net cash provided by (used in) operating activities

3,833,342

2,873,579

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from fixed maturities matured/called - available for sale, at market value

3,892,918

2,586,405

Proceeds from fixed maturities sold - available for sale, at market value

1,915,916

1,945,867

Proceeds from fixed maturities sold - available for sale, at fair value

-

4,907

Proceeds from equity securities sold, at fair value

990,376

376,347

Distributions from other invested assets

257,233

309,912

Cost of fixed maturities acquired - available for sale, at market value

(8,825,315)

(7,189,301)

Cost of equity securities acquired, at fair value

(1,097,886)

(637,082)

Cost of other invested assets acquired

(756,560)

(557,473)

Net change in short-term investments

(42,630)

(717,527)

Net change in unsettled securities transactions

(203,016)

194,574

Net cash provided by (used in) investing activities

(3,868,964)

(3,683,371)

CASH FLOWS FROM FINANCING ACTIVITIES:

Common shares issued during the period for share-based compensation, net of expense

(14,275)

(13,566)

Purchase of treasury shares

(225,136)

(200,020)

Dividends paid to shareholders

(246,699)

(249,056)

Proceeds from issuance of senior notes

968,357

979,417

Cost of debt repurchase

-

(10,647)

Net FHLB borrowings (repayments)

209,000

310,000

Cost of shares withheld on settlements of share-based compensation awards

(17,054)

(15,908)

Net cash provided by (used in) financing activities

674,193

800,220

EFFECT OF EXCHANGE RATECHANGES ON CASH

639

3,187

Net increase (decrease) in cash

639,210

(6,385)

Cash, beginning of period

801,651

808,036

Cash, end of period

$1,440,861

$801,651

SUPPLEMENTAL CASH FLOW INFORMATION:

Income taxes paid (recovered)

$98,030

$(169,748)

Interest paid

62,369

33,570