Supplemental GAAP Financial Information (Dollars in thousands, except per share amounts) (unaudited)
Year-to-Date
Quarter-to-Date
September 30,
September 30,
December 31,
September 30,
June 30,
March 31,
December 31,
September 30,
June 30,
March 31,
December 31,
2020
2019
2019
2020
2020
2020
2019
2019
2019
2019
2018
PRODUCTION INFORMATION:
Gross written premiums
$
7,731,813
$
6,697,037
$
9,133,364
$
2,791,604
$
2,369,338
$
2,570,871
$
2,436,327
$
2,403,274
$
2,166,655
$
2,127,108
$
2,278,361
Net written premiums
6,667,637
5,704,238
7,824,424
2,448,680
2,017,478
2,201,479
2,120,186
2,068,557
1,783,983
1,851,698
2,057,071
Net premiums earned
6,285,030
5,455,615
7,403,686
2,205,811
2,042,405
2,036,814
1,948,071
1,905,619
1,817,299
1,732,697
1,850,975
INVESTMENT INCOME:
Pre-tax investment income
$
420,116
$
501,062
$
647,139
$
234,233
$
38,083
$
147,800
$
146,077
$
181,058
$
179,028
$
140,976
$
140,204
Effective tax rate
12.2%
11.6%
11.7%
12.2%
19.3%
10.5%
12.1%
10.8%
9.8%
14.9%
12.1%
After-tax investment income
$
368,674
$
442,853
$
571,323
$
205,645
$
30,749
$
132,280
$
128,470
$
161,420
$
161,436
$
119,997
$
123,220
Net pre-tax yield - amortized cost
2.7%
3.5%
3.3%
4.3%
0.7%
2.9%
2.9%
3.7%
3.7%
3.0%
3.0%
Net after-tax yield - amortized cost
2.3%
3.1%
2.9%
3.8%
0.6%
2.6%
2.6%
3.3%
3.4%
2.6%
2.6%
CATASTROPHE INFORMATION:
Net pre-tax catastrophe losses (1)
$
345,000
$
335,000
$
550,000
$
300,000
$
15,000
$
30,000
$
215,000
$
280,000
$
30,000
$
25,000
$
875,000
After-tax effect of catastrophe losses
on earnings per basic common share (1)
(6.79)
(6.57)
(10.83)
(5.96)
(0.29)
(0.58)
(4.25)
(5.49)
(0.55)
(0.53)
(17.28)
After-tax effect of catastrophe losses
on earnings per diluted common share (1)
(6.78)
(6.55)
(10.79)
(5.95)
(0.29)
(0.57)
(4.24)
(5.49)
(0.55)
(0.53)
(17.28)
EFFECTIVE TAX RATE ON:
Net income (loss)
3.3%
10.0%
8.1%
10.8%
19.5%
-138.1%
0.7%
-12.2%
10.6%
14.5%
-45.4%
Net realized capital gains (losses)
20.4%
18.1%
18.5%
19.3%
18.5%
-18.2%
19.1%
-21.6%
14.1%
19.9%
-16.7%
Foreign exchange income (expense)
-3.6%
-11.1%
3.0%
6.9%
-3.7%
-19.5%
17.2%
-8.4%
-22.9%
469.7%
-27.0%
Operating income
-0.1%
9.0%
5.9%
3.9%
14.2%
-12.3%
-16.3%
-4.8%
10.9%
12.5%
-54.9%
AFTER-TAX EARNINGS:
Net income (loss)
$
450,549
$
791,817
$
1,009,461
$
243,057
$
190,880
$
16,612
$
217,644
$
104,398
$
332,868
$
354,551
$
(385,313)
Per basic common share
11.20
19.44
24.77
6.08
4.78
0.41
5.34
2.56
8.17
8.70
(9.58)
Per diluted common share
11.18
19.38
24.70
6.07
4.77
0.41
5.32
2.56
8.15
8.67
(9.58)
Net realized capital gains (losses)
67,067
89,756
150,808
88,911
150,519
(172,364)
61,052
(10,143)
25,994
73,905
(143,870)
Per basic common share
1.67
2.20
3.70
2.22
3.76
(4.23)
1.50
(0.25)
0.64
1.81
(3.58)
Per diluted common share
1.66
2.20
3.69
2.22
3.76
(4.22)
1.49
(0.25)
0.64
1.81
(3.58)
Foreign exchange income (expense)
39,233
(39,530)
(13,767)
57,157
(42,528)
24,604
25,763
(23,821)
(13,988)
(1,722)
(5,274)
Per basic common share
0.98
(0.97)
(0.34)
1.43
(1.06)
0.60
0.63
(0.58)
(0.34)
(0.04)
(0.13)
Per diluted common share
0.97
(0.97)
(0.34)
1.43
(1.06)
0.60
0.63
(0.58)
(0.34)
(0.04)
(0.13)
Income (loss) on TCJA Reform Act
-
-
-
-
-
-
-
-
-
-
703
Per basic common share
-
-
-
-
-
-
-
-
-
-
0.02
Per diluted common share
-
-
-
-
-
-
-
-
-
-
0.02
Operating income (2)
344,249
741,592
872,420
96,989
82,889
164,372
130,828
138,362
320,862
282,368
(236,872)
Per basic common share
8.56
18.21
21.41
2.43
2.07
4.04
3.21
3.40
7.88
6.93
(5.89)
Per diluted common share
8.54
18.15
21.34
2.42
2.07
4.03
3.20
3.39
7.85
6.91
(5.89)
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:
Basic
39,711
40,289
40,291
39,483
39,449
40,204
40,298
40,287
40,277
40,304
40,233
Diluted
39,790
40,421
40,420
39,557
39,519
40,296
40,418
40,411
40,404
40,445
40,408
(Some amounts may not reconcile due to rounding.) (NM, Not Meaningful)
Financial Supplement
Page 1 of 12
EVEREST RE GROUP, LTD.
Supplemental GAAP Financial Information (cont.) (Dollars in thousands, except per share amounts) (unaudited)
Year-to-Date
Quarter-to-Date
September 30,
September 30,
December 31,
September 30,
June 30,
March 31,
December 31,
September 30,
June 30,
March 31,
December 31,
2020
2019
2019
2020
2020
2020
2019
2019
2019
2019
2018
COMBINED RATIO:
Loss ratio
72.8%
64.4%
66.5%
78.7%
68.9%
70.3%
72.3%
72.0%
60.2%
60.5%
108.1%
Commission and brokerage ratio
21.7%
23.0%
23.0%
20.2%
22.8%
22.0%
23.1%
23.3%
23.2%
22.5%
21.4%
Other underwriting expense ratio
6.1%
5.9%
6.0%
6.3%
5.8%
6.3%
6.1%
6.1%
5.8%
5.7%
4.6%
Combined ratio
100.6%
93.3%
95.5%
105.2%
97.5%
98.6%
101.5%
101.4%
89.2%
88.7%
134.1%
CASH FLOW INFORMATION:
Cash flow provided by operations
$
2,190,608
$
1,486,863
$
1,852,002
$
1,086,022
$
598,597
$
505,989
$
365,139
$
633,352
$
393,709
$
459,802
$
66,440
Paid losses, net
3,058,250
2,957,477
4,503,071
907,859
1,074,073
1,076,318
1,545,594
984,810
1,051,973
920,694
1,257,134
Paid cats, net
505,916
677,965
868,824
150,280
136,298
219,338
190,859
192,664
236,081
249,220
371,448
Paid (recovered) asbestos and
environmental losses, net
21,378
19,871
32,756
6,212
7,880
7,286
12,885
6,951
3,097
9,823
8,670
Taxes paid (recovered)
(169,149)
(80,544)
(148,585)
(180,044)
5,975
4,920
(68,041)
3,451
6,851
(90,846)
2,877
RETURN ON EQUITY:
Beginning of period shareholders' equity
$
9,132,925
$
7,860,797
$
7,860,797
$
9,286,299
$
8,580,944
$
9,132,925
$
8,983,258
$
8,836,817
$
8,389,273
$
7,860,797
$
8,289,045
Net unrealized depreciation (appreciation)
of investments
(304,425)
179,392
179,392
(600,921)
(56,425)
(304,425)
(340,977)
(247,740)
(51,851)
179,392
213,020
Adjusted beginning of period
shareholders' equity
$
8,828,500
$
8,040,189
$
8,040,189
$
8,685,378
$
8,524,519
$
8,828,500
$
8,642,281
$
8,589,077
$
8,337,422
$
8,040,189
$
8,502,065
End of period shareholders' equity
$
9,591,292
$
8,983,258
$
9,132,925
$
9,591,292
$
9,286,299
$
8,580,944
$
9,132,925
$
8,983,258
$
8,836,817
$
8,389,273
$
7,860,797
Net unrealized depreciation (appreciation)
of investments
(652,949)
(340,977)
(304,425)
(652,949)
(600,921)
(56,425)
(304,425)
(340,977)
(247,740)
(51,851)
179,392
Adjusted end of period shareholders' equity
$
8,938,343
$
8,642,281
$
8,828,500
$
8,938,343
$
8,685,378
$
8,524,519
$
8,828,500
$
8,642,281
$
8,589,077
$
8,337,422
$
8,040,189
Average adjusted shareholders' equity
$
8,883,422
$
8,341,235
$
8,434,345
$
8,811,861
$
8,604,949
$
8,676,510
$
8,753,667
$
8,615,679
$
8,463,250
$
8,188,806
$
8,271,127
After-tax operating income (2)
$
344,249
$
741,592
$
872,420
$
96,989
$
82,889
$
164,372
$
130,828
$
138,362
$
320,862
$
282,368
$
(236,872)
After-tax net realized capital gains (losses)
67,067
89,756
150,808
88,911
150,519
(172,364)
61,052
(10,143)
25,994
73,905
(143,870)
After-tax foreign exchange income (expense)
39,233
(39,530)
(13,767)
57,157
(42,528)
24,604
25,763
(23,821)
(13,988)
(1,722)
(5,274)
After-tax TCJA Reform Act income (loss)
-
-
-
-
-
-
-
-
-
-
703
Net income (loss)
$
450,549
$
791,817
$
1,009,461
$
243,057
$
190,880
$
16,612
$
217,643
$
104,398
$
332,868
$
354,551
$
(385,313)
Return on equity (annualized)
After-tax operating income (2)
5.2%
11.9%
10.3%
4.4%
3.9%
7.6%
6.0%
6.4%
15.2%
13.8%
-11.5%
After-tax net realized capital gains (losses)
1.0%
1.4%
1.9%
4.0%
7.0%
-7.9%
2.8%
-0.5%
1.2%
3.6%
-6.9%
After-tax foreign exchange income (expense)
0.6%
-0.6%
-0.2%
2.6%
-2.0%
1.1%
1.2%
-1.1%
-0.7%
-0.1%
-0.3%
After-tax TCJA Reform Act income (loss)
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
Net income (loss)
6.8%
12.7%
12.0%
11.0%
8.9%
0.8%
10.0%
4.8%
15.7%
17.3%
-18.6%
(Some amounts may not reconcile due to rounding.)
__________________________________________
Catastrophe losses are net of specific reinsurance and reinstatement premiums.
The Company generally uses after-tax operating income (loss), a non-GAAP financial measure, to evaluate its performance. After-tax operating income (loss) consists of net income (loss) excluding after-tax net realized capital gains (losses), after-tax net foreign exchange income (expense) and the loss due to the enactment of the Tax Cuts and Jobs Act ("TCJA") of 2017. Although net realized capital gains (losses) and net foreign exchange income (expense) are an integral part of the Company's insurance operations, the determination of net realized capital gains (losses) and net foreign exchange income (expense) is independent of the insurance underwriting process. The Company believes that the level of net realized capital gains (losses) and net foreign exchange income (expense) for any particular period is not indicative of the performance of the underlying business in that particular period. Providing only a GAAP presentation of net income (loss) makes it more difficult for users of the financial information to evaluate the Company's success or failure in its basic business, and may lead to incorrect or misleading assumptions and conclusions. The Company understands that the equity analysts who follow the Company focus on after-tax operating income (loss) in their analyses for the reasons discussed above. The Company provides after-tax operating income (loss) to investors so that they have what management believes to be a useful supplement to GAAP information concerning the Company's performance.
Financial Supplement
Page 2 of 12
EVEREST RE GROUP, LTD.
Supplemental GAAP Balance Sheet Information (Dollars in thousands, except per share amounts) (unaudited)
September 30,
June 30,
March 31,
December 31,
September 30,
June 30,
March 31,
December 31,
2020
2020
2020
2019
2019
2019
2019
2018
BALANCE SHEET HIGHLIGHTS:
Total investments and cash
$
23,104,678
$
21,601,676
$
20,336,582
$
20,748,500
$
20,364,593
$
19,793,852
$
19,223,944
$
18,433,066
Total assets
30,153,027
28,584,793
27,222,638
27,324,051
27,023,741
26,340,448
25,593,151
24,750,992
Reserve for losses and loss adjustment expenses ("LAE") (gross)
15,233,125
14,276,641
13,820,504
13,611,313
13,637,639
13,249,488
13,247,102
13,119,090
Future policy benefit reserve
40,374
40,659
41,677
42,592
44,276
45,130
46,881
46,778
Senior notes due 6/1/2044
397,164
397,134
397,104
397,074
397,044
397,014
396,984
396,954
Long term notes due 5/1/2067
223,649
223,625
235,083
236,758
236,733
236,709
236,684
236,659
Shareholders' equity
9,591,292
9,286,299
8,580,944
9,132,925
8,983,258
8,836,817
8,389,273
7,860,797
Common shares outstanding
39,967
39,972
39,987
40,799
40,780
40,741
40,771
40,651
Book value per common share outstanding
$
239.98
$
232.32
$
214.59
$
223.85
$
220.28
$
216.90
$
205.77
$
193.37
TOTAL LOSS RESERVES:
Gross reserve for losses and LAE
$
15,233,125
$
14,276,641
$
13,820,504
$
13,611,313
$
13,637,639
$
13,249,488
$
13,247,102
$
13,119,090
Reinsurance receivables on unpaid losses
(1,774,732)
(1,692,947)
(1,651,946)
(1,640,712)
(1,632,687)
(1,636,918)
(1,621,292)
(1,619,641)
Net reserve for losses and LAE
$
13,458,393
$
12,583,694
$
12,168,558
$
11,970,601
$
12,004,952
$
11,612,570
$
11,625,810
$
11,499,449
ASBESTOS AND ENVIRONMENTAL LOSS RESERVES:
Net loss and LAE reserves
$
207,323
$
213,534
$
221,415
$
228,701
$
241,586
$
248,537
$
251,633
$
261,456
Net asbestos 3 year survival ratio
5.3
5.3
5.6
5.7
5.6
5.5
5.2
5.7
END OF PERIOD INVESTMENT PORTFOLIO INFORMATION:
Pre-tax book yield to maturity
3.1%
3.4%
3.4%
3.4%
3.4%
3.4%
3.5%
3.4%
After-tax book yield to maturity
2.7%
2.9%
3.0%
3.0%
3.0%
3.0%
3.1%
3.0%
Modified duration of fixed income portfolio (in years)
3.5
3.7
3.6
3.5
3.2
3.1
3.1
3.0
Average credit quality
Aa3
A1
Aa3
A1
A1
Aa3
Aa3
Aa3
OPERATING LEVERAGE:
Ratio of net written premiums to shareholders' equity
(12 month rolling)
0.92 TO 1
0.91 TO 1
0.95 TO 1
0.86 TO 1
0.86 TO 1
0.86 TO 1
0.91 TO 1
0.94 TO 1
Ratio of net loss and LAE reserves to shareholders' equity
1.40 TO 1
1.36 TO 1
1.42 TO 1
1.31 TO 1
1.34 TO 1
1.31 TO 1
1.39 TO 1
1.46 TO 1
Financial Supplement
Page 3 of 12
EVEREST RE GROUP, LTD. Segment Results (Dollars in thousands) (unaudited)
TOTAL SEGMENTS
Year-to-Date
Quarter-to-Date
September 30,
September 30,
December 31,
September 30,
June 30,
March 31,
December 31,
September 30,
June 30,
March 31,
December 31,
2020
2019
2019
2020
2020
2020
2019
2019
2019
2019
2018
Gross written premiums
$
7,731,813
$
6,697,037
$
9,133,364
$
2,791,604
$
2,369,338
$
2,570,871
$
2,436,327
$
2,403,274
$
2,166,655
$
2,127,108
$
2,278,361
Net written premiums
6,667,637
5,704,238
7,824,424
2,448,680
2,017,478
2,201,479
2,120,186
2,068,557
1,783,983
1,851,698
2,057,071
Premiums earned
$
6,285,030
$
5,455,615
$
7,403,686
$
2,205,811
$
2,042,405
$
2,036,814
$
1,948,071
$
1,905,619
$
1,817,299
$
1,732,697
$
1,850,975
Incurred losses and LAE
Attritional - current year
4,217,640
3,239,004
4,440,955
1,427,509
1,386,689
1,403,441
1,201,951
1,128,669
1,085,219
1,025,116
1,112,209
Attritional - prior year
1,426
(74,400)
(93,558)
(1,299)
5,327
(2,601)
(19,158)
(52,245)
(20,589)
(1,566)
(74,153)
Catastrophes
355,000
350,500
575,501
310,000
15,000
30,000
225,001
295,500
30,000
25,000
962,998
Total incurred losses and LAE
4,574,066
3,515,104
4,922,898
1,736,210
1,407,016
1,430,840
1,407,794
1,371,924
1,094,630
1,048,550
2,001,054
Commission and brokerage
1,360,170
1,253,500
1,703,726
445,332
466,316
448,522
450,226
443,076
420,950
389,474
396,588
Other underwriting expenses
385,865
321,976
440,899
138,875
118,130
128,860
118,923
118,158
104,833
98,985
84,216
Underwriting gain (loss)
$
(35,071)
$
365,035
$
336,163
$
(114,606)
$
50,943
$
28,592
$
(28,872)
$
(27,539)
$
196,886
$
195,688
$
(630,883)
Loss ratio
Attritional - current year
67.1%
59.4%
60.0%
64.8%
67.9%
68.9%
61.7%
59.2%
59.6%
59.2%
60.0%
Attritional - prior year
0.1%
-1.4%
-1.3%
-0.1%
0.3%
-0.1%
-1.0%
-2.7%
-1.1%
-0.1%
-4.0%
Catastrophes
5.6%
6.4%
7.8%
14.0%
0.7%
1.5%
11.5%
15.5%
1.7%
1.4%
52.1%
Total loss ratio
72.8%
64.4%
66.5%
78.7%
68.9%
70.3%
72.3%
72.0%
60.2%
60.5%
108.1%
Commission and brokerage ratio
21.7%
23.0%
23.0%
20.2%
22.8%
22.0%
23.1%
23.3%
23.2%
22.5%
21.4%
Other underwriting expenses
6.1%
5.9%
6.0%
6.3%
5.8%
6.3%
6.1%
6.1%
5.8%
5.7%
4.6%
Combined ratio
100.6%
93.3%
95.5%
105.2%
97.5%
98.6%
101.5%
101.4%
89.2%
88.7%
134.1%
Ratios excluding reinstatement premium impact
Attritional loss ratio - current year
67.2%
59.5%
60.2%
65.0%
67.9%
68.9%
62.0%
59.7%
59.6%
59.2%
63.1%
Attritional combined ratio
95.0%
87.7%
88.4%
91.6%
96.5%
97.3%
90.3%
87.1%
88.6%
87.4%
90.4%
(Some amounts may not reconcile due to rounding.)
Financial Supplement
Page 4 of 12
EVEREST RE GROUP, LTD. Segment Results (cont.) (Dollars in thousands) (unaudited)
TOTAL REINSURANCE
Year-to-Date
Quarter-to-Date
September 30,
September 30,
December 31,
September 30,
June 30,
March 31,
December 31,
September 30,
June 30,
March 31,
December 31,
2020
2019
2019
2020
2020
2020
2019
2019
2019
2019
2018
Gross written premiums
$
5,403,080
$
4,678,310
$
6,355,889
$
2,086,961
$
1,538,348
$
1,777,771
$
1,677,579
$
1,736,672
$
1,409,587
$
1,532,051
$
1,695,990
Net written premiums
4,974,034
4,212,952
5,732,272
1,936,851
1,424,089
1,613,094
1,519,320
1,583,713
1,234,686
1,394,553
1,590,365
Premiums earned
$
4,656,733
$
4,072,078
$
5,491,296
$
1,669,257
$
1,502,256
$
1,485,221
$
1,419,218
$
1,420,799
$
1,343,760
$
1,307,519
$
1,432,855
Incurred losses and LAE
Attritional - current year
3,067,495
2,330,472
3,177,518
1,063,847
1,004,886
998,762
847,046
808,007
773,701
748,764
836,345
Attritional - prior year
(3,128)
(74,428)
(77,153)
(1,299)
791
(2,620)
(2,725)
(52,243)
(20,619)
(1,566)
(22,969)
Catastrophes
297,000
349,857
574,813
272,500
-
24,500
224,956
294,857
30,000
25,000
947,152
Total incurred losses and LAE
3,361,367
2,605,901
3,675,178
1,335,048
1,005,677
1,020,642
1,069,277
1,050,621
783,082
772,198
1,760,528
Commission and brokerage
1,130,946
1,039,113
1,400,247
373,251
387,339
370,356
361,134
371,098
345,378
322,637
324,929
Other underwriting expenses
135,170
117,031
160,834
51,333
39,698
44,139
43,803
43,832
37,430
35,769
31,503
Underwriting gain (loss)
$
29,250
$
310,033
$
255,037
$
(90,375)
$
69,542
$
50,084
$
(54,996)
$
(44,752)
$
177,870
$
176,915
$
(684,105)
Loss ratio
Attritional - current year
65.9%
57.2%
57.9%
63.8%
66.9%
67.2%
59.7%
56.9%
57.6%
57.3%
58.4%
Attritional - prior year
-0.1%
-1.8%
-1.4%
-0.1%
0.1%
-0.2%
-0.2%
-3.7%
-1.5%
-0.1%
-1.6%
Catastrophes
6.4%
8.6%
10.5%
16.3%
0.0%
1.7%
15.9%
20.7%
2.2%
1.9%
66.1%
Total loss ratio
72.2%
64.0%
67.0%
80.0%
67.0%
68.7%
75.4%
73.9%
58.3%
59.1%
122.9%
Commission and brokerage ratio
24.3%
25.5%
25.5%
22.3%
25.8%
24.9%
25.4%
26.1%
25.7%
24.7%
22.7%
Other underwriting expense ratio
2.9%
2.9%
2.9%
3.1%
2.6%
3.0%
3.1%
3.1%
2.8%
2.7%
2.1%
Combined ratio
99.4%
92.4%
95.4%
105.4%
95.4%
96.6%
103.9%
103.1%
86.8%
86.5%
147.7%
Ratios excluding reinstatement premium impact
Attritional loss ratio - current year
66.0%
57.5%
58.2%
64.1%
66.9%
67.2%
60.1%
57.6%
57.6%
57.3%
62.2%
Attritional combined ratio
93.3%
84.9%
85.5%
89.7%
95.3%
95.2%
87.4%
84.0%
86.1%
84.7%
88.7%
(Some amounts may not reconcile due to rounding.)
Financial Supplement
Page 5 of 12
EVEREST RE GROUP, LTD. Segment Results (cont.) (Dollars in thousands) (unaudited)
TOTAL REINSURANCE
Year-to-Date
Quarter-to-Date
September 30,
September 30,
December 31,
September 30,
June 30,
March 31,
December 31,
September 30,
June 30,
March 31,
December 31,
2020
2019
2019
2020
2020
2020
2019
2019
2019
2019
2018
Gross Written Premium by Line of Business
Property Pro Rata
$
1,761,097
$
1,431,659
$
1,974,212
$
671,906
$
524,306
$
564,885
$
542,553
$
529,361
$
403,925
$
498,373
$
500,757
Property Non-Catastrophe XOL
363,107
377,387
491,740
154,332
93,206
115,569
114,353
143,099
107,720
126,568
95,542
Property Catastrophe XOL
991,248
878,557
1,137,879
428,791
206,773
355,684
259,322
358,287
220,387
299,883
363,808
Casualty Pro Rata
1,118,138
1,031,037
1,443,324
363,152
360,708
394,278
412,287
375,858
355,057
300,122
398,720
Casualty XOL
720,125
536,434
730,291
289,650
212,458
218,017
193,857
199,447
159,473
177,514
160,379
Financial lines
449,365
423,236
578,443
179,130
140,897
129,338
155,207
130,620
163,025
129,591
176,784
$
5,403,080
4,678,310
$
6,355,889
$
2,086,961
$
1,538,348
$
1,777,771
$
1,677,579
$
1,736,672
$
1,409,587
$
1,532,051
$
1,695,990
Percentage of Gross Written Premium by Line of Business
Property Pro Rata
32.6%
30.6%
31.1%
32.2%
34.1%
31.8%
32.3%
30.5%
28.7%
32.5%
29.5%
Property Non-Catastrophe XOL
6.7%
8.1%
7.7%
7.4%
6.1%
6.5%
6.7%
8.2%
7.6%
8.2%
5.6%
Property Catastrophe XOL
18.4%
18.8%
17.9%
20.5%
13.4%
20.0%
15.5%
20.6%
15.6%
19.6%
21.5%
Casualty Pro Rata
20.7%
22.0%
22.7%
17.4%
23.4%
22.2%
24.6%
21.6%
25.2%
19.6%
23.5%
Casualty XOL
13.3%
11.5%
11.5%
13.9%
13.8%
12.3%
11.6%
11.5%
11.3%
11.6%
9.5%
Financial lines
8.3%
9.0%
9.1%
8.6%
9.2%
7.3%
9.3%
7.5%
11.6%
8.5%
10.4%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
(Some amounts may not reconcile due to rounding.)
Financial Supplement
Page 6 of 12
EVEREST RE GROUP, LTD. Segment Results (cont.) (Dollars in thousands) (unaudited)
TOTAL INSURANCE
Year-to-Date
Quarter-to-Date
September 30,
September 30,
December 31,
September 30,
June 30,
March 31,
December 31,
September 30,
June 30,
March 31,
December 31,
2020
2019
2019
2020
2020
2020
2019
2019
2019
2019
2018
Gross written premiums
$
2,328,733
$
2,018,727
$
2,777,475
$
704,643
$
830,990
$
793,100
$
758,748
$
666,602
$
757,068
$
595,057
$
582,371
Net written premiums
1,693,603
1,491,286
2,092,152
511,829
593,389
588,385
600,866
484,844
549,297
457,145
466,706
Premiums earned
$
1,628,297
$
1,383,537
$
1,912,390
$
536,554
$
540,149
$
551,593
$
528,853
$
484,820
$
473,539
$
425,178
$
418,120
Incurred losses and LAE
Attritional - current year
1,150,145
908,532
1,263,437
363,662
381,803
404,679
354,905
320,662
311,518
276,352
275,864
Attritional - prior year
4,554
28
(16,405)
-
4,536
19
(16,433)
(2)
30
-
(51,184)
Catastrophes
58,000
643
688
37,500
15,000
5,500
45
643
-
-
15,846
Total incurred losses and LAE
1,212,699
909,203
1,247,720
401,162
401,339
410,198
338,517
321,303
311,548
276,352
240,526
Commission and brokerage
229,224
214,387
303,479
72,081
78,977
78,166
89,092
71,978
75,572
66,837
71,659
Other underwriting expenses
250,695
204,945
280,065
87,542
78,432
84,721
75,120
74,326
67,403
63,216
52,713
Underwriting gain (loss)
$
(64,321)
$
55,002
$
81,126
$
(24,231)
$
(18,599)
$
(21,492)
$
26,124
$
17,213
$
19,016
$
18,773
$
53,222
Loss ratio
Attritional - current year
70.7%
65.7%
66.1%
67.8%
70.7%
73.4%
67.1%
66.1%
65.8%
65.0%
65.9%
Attritional - prior year
0.3%
0.0%
-0.9%
0.0%
0.8%
0.0%
-3.1%
0.0%
0.0%
0.0%
-12.2%
Catastrophes
3.6%
0.1%
0.0%
7.0%
2.8%
1.0%
0.0%
0.1%
0.0%
0.0%
3.8%
Total loss ratio
74.6%
65.8%
65.2%
74.8%
74.3%
74.4%
64.0%
66.2%
65.8%
65.0%
57.5%
Commission and brokerage ratio
14.0%
15.5%
15.9%
13.4%
14.6%
14.2%
16.8%
14.8%
16.0%
15.7%
17.1%
Other underwriting expense ratio
15.4%
14.7%
14.7%
16.3%
14.5%
15.3%
14.3%
15.4%
14.2%
14.9%
12.7%
Combined ratio
104.0%
96.0%
95.8%
104.5%
103.4%
103.9%
95.1%
96.4%
96.0%
95.6%
87.3%
Ratios excluding reinstatement premium impact
Attritional loss ratio - current year
70.6%
65.6%
66.0%
67.8%
70.7%
73.4%
67.1%
65.9%
65.8%
65.0%
65.9%
Attritional combined ratio
100.0%
95.9%
96.5%
97.6%
99.8%
102.9%
98.1%
96.0%
96.0%
95.6%
95.7%
(Some amounts may not reconcile due to rounding.)
Financial Supplement
Page 7 of 12
EVEREST RE GROUP, LTD. Segment Results (cont.) (Dollars in thousands) (unaudited)
TOTAL INSURANCE
Year-to-Date
Quarter-to-Date
September 30,
September 30,
December 31,
September 30,
June 30,
March 31,
December 31,
September 30,
June 30,
March 31,
December 31,
2020
2019
2019
2020
2020
2020
2019
2019
2019
2019
2018
Gross Written Premium by Line of Business
Accident and Health
$
284,217
$
251,472
$
336,806
$
88,597
$
87,166
$
108,454
$
85,334
$
86,118
$
81,877
$
83,477
$
66,524
Specialty Casualty
721,664
566,654
789,630
235,525
251,237
234,902
235,066
188,560
195,455
170,550
167,132
Other Specialty
118,536
113,278
151,049
36,872
36,289
45,375
33,767
42,497
41,515
33,269
26,326
Professional Liability
366,081
267,829
400,605
113,860
138,514
113,707
124,691
94,533
108,729
72,652
88,011
Property/Short Tail
452,033
395,737
530,585
124,750
203,330
123,953
134,847
127,573
175,625
92,540
91,668
Workers' Compensation
386,202
423,757
568,800
105,039
114,454
166,709
145,043
127,321
153,867
142,569
142,710
$
2,328,733
$
2,018,727
$
2,777,475
$
704,643
$
830,990
$
793,100
$
758,748
$
666,602
$
757,068
$
595,057
$
582,371
Percentage of Gross Written Premium by Line of Business
Accident and Health
12.2%
12.5%
12.1%
12.6%
10.5%
13.7%
11.2%
12.9%
10.8%
14.0%
11.4%
Specialty Casualty
31.0%
28.0%
28.4%
33.4%
30.2%
29.6%
31.0%
28.3%
25.8%
28.7%
28.7%
Other Specialty
5.1%
5.6%
5.4%
5.2%
4.4%
5.7%
4.5%
6.4%
5.5%
5.6%
4.5%
Professional Liability
15.7%
13.3%
14.5%
16.2%
16.7%
14.4%
16.4%
14.2%
14.4%
12.2%
15.1%
Property/Short Tail
19.4%
19.6%
19.1%
17.7%
24.4%
15.6%
17.8%
19.1%
23.2%
15.6%
15.8%
Workers' Compensation
16.6%
21.0%
20.5%
14.9%
13.8%
21.0%
19.1%
19.1%
20.3%
23.9%
24.5%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
(Some amounts may not reconcile due to rounding.)
Financial Supplement
Page 8 of 12
EVEREST RE GROUP, LTD.
Supplemental Investment Portfolio Analysis (Dollars in thousands)
(unaudited)
INVESTMENTS AND CASH
At September 30, 2020
At December 31, 2019
Cost/
Amortized Cost
Pre-tax
Pre-tax
Less Allowances
Unrealized
Cost/
Unrealized
Investments and cash:
Market Value
for Credit losses
Gains/(Losses)
Market Value
Amortized Cost
Gains/(Losses)
Fixed maturities-available for sale, at market value
$
17,856,377
$
17,111,773
$
744,604
$
16,824,944
$
16,473,491
$
351,453
Fixed maturities-available for sale, at fair value
3,748
3,748
-
5,826
5,826
-
Equity securities, at fair value
1,173,162
1,173,162
-
931,457
931,457
-
Other invested assets
1,911,757
1,911,757
-
1,763,531
1,763,531
-
Short-term investments
1,220,753
1,221,198
(445)
414,706
414,639
67
Cash
938,881
938,881
-
808,036
808,036
-
Total
$
23,104,678
$
22,360,519
$
744,159
$
20,748,500
$
20,396,980
$
351,520
FIXED INCOME AND CASH
Fixed income investments and cash:
Market Value
% of Total
Market Value
% of Total
Fixed maturities-available for sale, at market value
$
17,856,377
89.2%
$
16,824,944
93.2%
Fixed maturities-available for sale, at fair value
3,748
0.0%
5,826
0.0%
Short-term investments
1,220,753
6.1%
414,706
2.3%
Cash
938,881
4.7%
808,036
4.5%
Total
$
20,019,759
100.0%
$
18,053,512
100.0%
Pre-tax
Pre-tax
Unrealized
Unrealized
Investment Sectors:
Market Value
% of Total
Gains/(Losses)
Market Value
% of Total
Gains/(Losses)
Treasury
$
1,452,003
7.3%
$
64,521
$
1,515,803
8.4%
$
26,143
Agency
5,001
0.0%
(1)
460
0.0%
(1)
Corporate
6,800,348
34.0%
296,697
6,374,486
35.2%
147,286
Mortgage-backed securities
Agency
2,118,653
10.6%
73,816
2,198,581
12.2%
25,482
Non-agency residential
2,520
0.0%
(39)
5,703
0.0%
(20)
Commercial
969,320
4.8%
76,321
844,557
4.7%
29,987
Asset-backed securities
1,338,202
6.7%
11,284
897,333
5.0%
4,960
Municipal
543,283
2.7%
28,496
536,915
3.0%
29,562
Non-US
4,630,795
23.1%
193,509
4,456,932
24.7%
88,054
Cash & short-term investments
2,159,634
10.8%
(445)
1,222,742
6.8%
67
Total
$
20,019,759
100.0%
$
744,159
$
18,053,512
100.0%
$
351,520
Credit Quality:
Market Value
% of Total
Market Value
% of Total
AAA
$
8,644,036
43.2%
$
7,702,103
42.7%
AA
2,612,526
13.0%
2,564,038
14.2%
A
4,588,439
22.9%
3,986,809
22.1%
BBB
2,823,770
14.1%
2,457,850
13.6%
BB
743,214
3.7%
722,406
4.0%
B
230,372
1.2%
265,441
1.4%
Rated Below B
41,046
0.2%
17,708
0.1%
Other
336,356
1.7%
337,157
1.9%
Total
$
20,019,759
100.0%
$
18,053,512
100.0%
Financial Supplement
Page 9 of 12
EVEREST RE GROUP, LTD.
Supplemental Investment Portfolio Analysis (cont.) (Dollars in thousands)
(unaudited)
FIXED INCOME AND CASH (cont.)
September 30, 2020
December 31, 2019
Unrealized
Unrealized
Top 20 Largest Corporate Fixed Income Positions:
Market Value
Gain / (Loss)
Top 20 Largest Corporate Fixed Income Positions:
Market Value
Gain / (Loss)
Apple Inc.
$
128,251
$
4,537
Apple Inc.
$
126,376
$
1,179
Toyota Motor Credit Corporation
106,553
5,376
Wells Fargo & Company
105,306
1,268
Wells Fargo & Company
102,007
2,772
Toyota Motor Credit Corporation
104,202
3,476
Citigroup Inc.
100,466
3,827
Citigroup Inc.
84,783
2,261
Daimler AG
97,148
4,544
Bank of America Corporation
84,555
2,847
Goldman Sachs Group Inc.
94,107
(164)
Daimler AG
83,806
2,617
Bank of America Corporation
93,434
5,834
BMW Group
79,707
1,358
Caterpillar Financial Services Corporation
83,074
6,831
Lloyds Banking Group plc
79,510
2,243
BMW Group
80,848
2,696
International Business Machines Corporation
71,373
965
JPMorgan Chase & Co.
73,050
6,780
Portfolio Advisors, L.L.C.
70,649
-
International Business Machines Corporation
73,020
2,478
Caterpillar Financial Services Corporation
69,986
4,987
Portfolio Advisors, L.L.C.
70,649
-
The Bank of New York Mellon
69,347
3,658
European Investment Bank
69,544
3,872
The Royal Bank of Canada
69,141
81
The Bank of New York Mellon
69,343
6,959
Truist Financial Corporation
68,957
2,028
Massachusetts Mutual Life Insurance Company
69,179
4,749
JPMorgan Chase & Co.
67,266
4,204
The Walt Disney Company
69,016
3,875
Goldman Sachs Group Inc.
66,904
546
The Royal Bank of Canada
68,594
1,180
Massachusetts Mutual Life Insurance Company
66,640
2,057
CPPIB Capital Inc
66,316
6,219
Deere & Company
65,809
918
Deere & Company
66,173
3,174
Sumitomo Mitsui Financial Group, Inc.
64,538
1,051
The Coca-Cola Company
66,158
4,278
The Toronto-Dominion Bank
64,201
1,860
Total
$
1,646,930
$
79,817
Total
$
1,563,056
$
39,604
Financial Supplement
Page 10 of 12
EVEREST RE GROUP, LTD.
Supplemental Investment Portfolio Analysis (cont.) (Dollars in thousands)
(unaudited)
EQUITIES AT FAIR VALUE
September 30, 2020
December 31, 2019
Top 20 Largest Individual Equity Positions:
Fair Value
Top 20 Largest Individual Equity Positions:
Fair Value
Houston International Insurance Group
$
22,083
The Westaim Corporation
$
12,581
Meituan Dianping
13,531
Accenture plc
10,695
Microsoft Corporation
12,387
Microsoft Corporation
8,041
The Westaim Corporation
10,648
Gilead Sciences, Inc.
7,900
Adobe Inc.
10,626
Merck & Company, Inc.
7,883
Square, Inc.
9,475
Philip Morris International, Inc.
7,575
Reckitt Benckiser Group plc
9,288
Thermo Fisher Scientific Inc.
7,176
Idexx Laboratories, Inc.
9,277
Reckitt Benckiser Group plc
7,171
Thermo Fisher Scientific Inc.
8,931
Abbott Laboratories
6,395
Abbott Laboratories
8,509
Mastercard Incorporated
6,298
Danaher Corporation
8,259
Danaher Corporation
6,077
Accenture plc
8,154
PepsiCo, Inc.
5,758
Mastercard Incorporated
8,147
Adobe Inc.
5,711
PayPal Holdings, Inc.
8,078
Cigna Corporation
5,479
Philip Morris International, Inc.
7,821
Idexx Laboratories, Inc.
5,458
The Procter and Gamble Company
7,615
SAP SE
5,408
NVIDIA Corporation
7,279
Nike, Inc.
5,356
Teladoc Health, Inc.
7,016
Alphabet Inc.
5,309
Alphabet Inc.
6,742
Visa Inc.
5,186
Nike, Inc.
5,789
Marriott International, Inc.
5,168
Total
$
189,655
Total
$
136,625
Financial Supplement
Page 11 of 12
EVEREST RE GROUP, LTD.
Supplemental Investment Income and Realized Capital Gains (Losses)
Everest Re Group Ltd. published this content on 29 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 October 2020 21:29:05 UTC
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