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Segment Reporting | 9 Months Ended
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Sep. 30, 2019
Segment Reporting [Abstract] |
Segment Reporting | 16. SEGMENT REPORTING The U.S. Reinsurance operation writes property and casualty reinsurance and specialty lines of business, including Marine, Aviation, Surety and Accident and Health (“A&H”) business, on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies primarily within the U.S. The International operation writes non-U.S. property and casualty reinsurance through Everest Re’s branches in Canada and Singapore and through offices in Brazil, Miami and New Jersey. The Bermuda operation provides reinsurance and insurance to worldwide property and casualty markets through brokers and directly with ceding companies from its Bermuda office and reinsurance to the United Kingdom and European markets through its UK branch and Ireland Re. The Insurance operation writes property and casualty insurance directly and through brokers, surplus lines brokers and general agents within the U.S., Canada and Europe. These segments are managed independently, but conform with corporate guidelines with respect to pricing, risk management, control of aggregate catastrophe exposures, capital, investments and support operations. Management generally monitors and evaluates the financial performance of these operating segments based upon their underwriting results. Underwriting results include earned premium less losses and loss adjustment expenses (“LAE”) incurred, commission and brokerage expenses and other underwriting expenses. We measure our 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. For inter-affiliate reinsurance and business written through the Lloyd’s Syndicate, business is generally reported within the segment in which the business was first produced, consistent with how the business is managed. The Company does not maintain separate balance sheet data for its operating segments. Accordingly, the Company does not review and evaluate the financial results of its operating segments based upon balance sheet data. The following tables present the underwriting results for the operating segments for the periods indicated:
| Three Months Ended |  | Nine Months Ended
U.S. Reinsurance | September 30, |  | September 30,
(Dollars in thousands) | 2019 |  | 2018 |  | 2019 |  | 2018
Gross written premiums | $ | 852,679 |  | $ | 940,839 |  | $ | 2,258,589 |  | $ | 2,237,170
Net written premiums |  | 754,477 |  |  | 845,743 |  |  | 1,931,024 |  |  | 1,957,877
Premiums earned | $ | 646,265 |  | $ | 670,663 |  | $ | 1,893,516 |  | $ | 1,837,932
Incurred losses and LAE |  | 380,960 |  |  | 440,070 |  |  | 1,052,789 |  |  | 1,494,916
Commission and brokerage |  | 215,813 |  |  | 156,500 |  |  | 555,517 |  |  | 432,532
Other underwriting expenses |  | 19,150 |  |  | 16,250 |  |  | 50,468 |  |  | 48,608
Underwriting gain (loss) | $ | 30,342 |  | $ | 57,843 |  | $ | 234,742 |  | $ | (138,124)
| Three Months Ended |  | Nine Months Ended
International | September 30, |  | September 30,
(Dollars in thousands) | 2019 |  | 2018 |  | 2019 |  | 2018
Gross written premiums | $ | 442,294 |  | $ | 362,651 |  | $ | 1,215,209 |  | $ | 1,128,399
Net written premiums |  | 407,897 |  |  | 348,785 |  |  | 1,141,319 |  |  | 1,049,249
Premiums earned | $ | 372,344 |  | $ | 342,238 |  | $ | 1,083,354 |  | $ | 1,049,637
Incurred losses and LAE |  | 411,011 |  |  | 310,400 |  |  | 878,118 |  |  | 738,830
Commission and brokerage |  | 83,420 |  |  | 81,439 |  |  | 253,015 |  |  | 255,704
Other underwriting expenses |  | 11,331 |  |  | 10,191 |  |  | 29,847 |  |  | 31,116
Underwriting gain (loss) | $ | (133,418) |  | $ | (59,792) |  | $ | (77,626) |  | $ | 23,987
|  | Three Months Ended |  | Nine Months Ended
Bermuda | September 30, |  | September 30,
(Dollars in thousands) | 2019 |  | 2018 |  | 2019 |  | 2018
Gross written premiums | $ | 441,699 |  | $ | 377,916 |  | $ | 1,204,512 |  | $ | 1,163,042
Net written premiums |  | 421,339 |  |  | 358,758 |  |  | 1,140,609 |  |  | 1,108,962
Premiums earned | $ | 402,190 |  | $ | 299,815 |  | $ | 1,095,208 |  | $ | 972,647
Incurred losses and LAE |  | 258,650 |  |  | 211,718 |  |  | 674,994 |  |  | 591,328
Commission and brokerage |  | 71,865 |  |  | 76,611 |  |  | 230,581 |  |  | 238,416
Other underwriting expenses |  | 13,351 |  |  | 10,752 |  |  | 36,716 |  |  | 31,647
Underwriting gain (loss) | $ | 58,324 |  | $ | 734 |  | $ | 152,917 |  | $ | 111,256
| Three Months Ended |  | Nine Months Ended
Insurance | September 30, |  | September 30,
(Dollars in thousands) | 2019 |  | 2018 |  | 2019 |  | 2018
Gross written premiums | $ | 666,602 |  | $ | 517,258 |  | $ | 2,018,727 |  | $ | 1,668,181
Net written premiums |  | 484,844 |  |  | 385,487 |  |  | 1,491,286 |  |  | 1,241,269
Premiums earned | $ | 484,820 |  | $ | 418,763 |  | $ | 1,383,537 |  | $ | 1,220,508
Incurred losses and LAE |  | 321,303 |  |  | 289,670 |  |  | 909,203 |  |  | 825,275
Commission and brokerage |  | 71,978 |  |  | 66,851 |  |  | 214,387 |  |  | 195,790
Other underwriting expenses |  | 74,326 |  |  | 60,749 |  |  | 204,945 |  |  | 175,954
Underwriting gain (loss) | $ | 17,213 |  | $ | 1,493 |  | $ | 55,002 |  | $ | 23,489
The following table reconciles the underwriting results for the operating segments to income before taxes as reported in the consolidated statements of operations and comprehensive income (loss) for the periods indicated:
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
(Dollars in thousands) | 2019 |  | 2018 |  | 2019 |  | 2018
Underwriting gain (loss) | $ | (27,539) |  | $ | 278 |  | $ | 365,035 |  | $ | 20,608
Net investment income |  | 181,058 |  |  | 161,363 |  |  | 501,062 |  |  | 440,979
Net realized capital gains (losses) |  | (12,943) |  |  | 54,804 |  |  | 109,561 |  |  | 45,679
Net derivative gain (loss) |  | (189) |  |  | 2,225 |  |  | 3,395 |  |  | 5,485
Corporate expenses |  | (8,435) |  |  | (7,890) |  |  | (22,622) |  |  | (23,519)
Interest, fee and bond issue cost amortization expense |  | (7,907) |  |  | (7,901) |  |  | (23,972) |  |  | (23,047)
Other income (expense) |  | (31,025) |  |  | (13,408) |  |  | (52,550) |  |  | (2,948)
Income (loss) before taxes | $ | 93,020 |  | $ | 189,471 |  | $ | 879,909 |  | $ | 463,237
The Company produces business in the U.S., Bermuda and internationally. The net income deriving from and assets residing in the individual foreign countries in which the Company writes business are not identifiable in the Company’s financial records. Based on gross written premium, the table below presents the largest country, other than the U.S., in which the Company writes business, for the periods indicated:
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
(Dollars in thousands) | 2019 |  | 2018 |  | 2019 |  | 2018
United Kingdom gross written premium | $ | 272,297 |  | $ | 246,580 |  | $ | 743,294 |  | $ | 681,911
No other country represented more than 5% of the Company’s revenues.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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