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Schedule II - Condensed Financial Information Of The Registrant

12 Months Ended

Dec. 31, 2020

Schedule II - Condensed Financial Information Of The Registrant [Abstract]

Schedule II - Condensed Financial Information Of The Registrant

SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

CONDENSED BALANCE SHEETS

	December 31,
(Dollars and share amounts in thousands, except par value per share)	2020			2019

ASSETS:
Fixed maturities - available for sale, at market value	$	3		$	201,666
(amortized cost: 2020, $3; 2019, $201,581)
Other invested assets (cost: 2020, $282,762; 2019, $41,700)		282,762			41,700
Cash		884			3,471
Investment in subsidiaries, at equity in the underlying net assets		9,660,713			9,134,038
Accrued investment income		-			652
Receivable from subsidiaries		18,424			9,361
Other assets		64,692			44,646
TOTAL ASSETS	$	10,027,478		$	9,435,534

LIABILITIES:
Long term note payable, affiliated due 12/1/2028	$	300,000		$	300,000
Due to subsidiaries		1,933			1,491
Other liabilities		(631)			1,118
Total liabilities		301,302			302,609

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
(2020) 69,620and (2019) 69,464 issued outstanding before treasury shares		696			694
Additional paid-in capital		2,245,301			2,219,660
Accumulated other comprehensive income (loss), net of deferred income
tax expense (benefit) of $80,451 at 2020 and $30,996 at 2019		534,899			28,152
Treasury shares, at cost; 29,636 shares (2020) and 28,665 shares (2019)		(3,622,172)			(3,422,152)
Retained earnings		10,567,452			10,306,571
Total shareholders' equity		9,726,176			9,132,925
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	10,027,478		$	9,435,534

See notes to consolidated financial statements.

SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

CONDENSED STATEMENTS OF OPERATIONS

	Years Ended December 31,
		2020			2019			2018
(Dollars in thousands)
REVENUES:
Net investment income	$	1,121		$	3,484		$	3,790
Net realized capital gains (losses)		28			(66)			(57)
Other income (expense)		5,833			458			(5,299)
Net income (loss) of subsidiaries		535,866			1,026,233			112,859
Total revenues		542,848			1,030,109			111,293

EXPENSES:
Interest expense - affiliated		5,155			2,087			4,085
Other expenses		23,542			18,561			18,167
Total expenses		28,697			20,648			22,252

INCOME (LOSS) BEFORE TAXES		514,151			1,009,461			89,041

NET INCOME (LOSS)	$	514,151		$	1,009,461		$	89,041

Other comprehensive income (loss), net of tax:
Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period		423,210			496,430			(255,656)
Reclassification adjustment for realized losses (gains) included in net income (loss)		(3,476)			(12,613)			27,496
Total URA(D) on securities arising during the period		419,734			483,817			(228,160)

Foreign currency translation adjustments		86,327			14,030			(76,816)

Benefit plan actuarial net gain (loss) for the period		(5,615)			(12,591)			(510)
Reclassification adjustment for amortization of net (gain) loss included in net income (loss)		6,300			5,453			5,021
Total benefit plan net gain (loss) for the period		685			(7,138)			4,511
Total other comprehensive income (loss), net of tax		506,746			490,709			(300,465)

COMPREHENSIVE INCOME (LOSS)	$	1,020,897		$	1,500,170		$	(211,424)



See notes to consolidated financial statements.

SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

CONDENSED STATEMENTS OF CASH FLOWS

	Years Ended December 31,
(Dollars in thousands)		2020			2019			2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	514,151		$	1,009,461		$	89,041
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in retained (earnings) deficit of subsidiaries		(535,866)			(1,026,233)			(112,859)
Dividends received from Bermuda Re		650,000			600,000			750,000
Dividends received from Everest International		-			-			200,000
Dividends received from Mt. Logan Re		-			-			-		-
Change in other assets and liabilities, net		(21,145)			564			4,824
Increase (decrease) in due to/from affiliates		(8,621)			(2,209)			683
Amortization of bond premium (accrual of bond discount)		(14)			(9)			(577)
Realized capital losses (gains)		(28)			66			57
Non-cash compensation expense		2,588			2,796			2,740
Net cash provided by (used in) operating activities		601,065			584,436			933,909

CASH FLOWS FROM INVESTING ACTIVITIES:
Additional investment in subsidiaries		(138,320)			(478,125)			(542,965)
Proceeds from fixed maturities matured/called - available for sale, at market value		1,356			63			93
Proceeds from fixed maturities sold - available for sale, at market value		200,264			74,841			24,856
Distribution from other invested assets		559,767			644,918			1,026,297
Cost of fixed maturities acquired - available for sale, at market value		-			(200,267)			-
Cost of other invested assets acquired		(800,828)			(686,528)			(923,828)
Net change in short-term investments		-			-			-
Net cash provided by (used in) investing activities		(177,761)			(645,098)			(415,547)

CASH FLOWS FROM FINANCING ACTIVITIES:
Common shares issued during the period, net		23,185			22,861			20,086
Purchase of treasury shares		(200,020)			(24,604)			(75,304)
Dividends paid to shareholders		(249,056)			(234,322)			(216,221)
Proceeds from issuance (cost of repayment) of long term note - affiliated		-			300,000			(250,000)
Net cash provided by (used in) financing activities		(425,891)			63,935			(521,439)

EFFECT OF EXCHANGE RATE CHANGES ON CASH		-			-			-

Net increase (decrease) in cash		(2,587)			3,273			(3,077)
Cash, beginning of period		3,471			198			3,275
Cash, end of period	$	884		$	3,471		$	198

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 Re Group, Ltd. and its Subsidiaries.

2.) Everest Re Group, Ltd. entered into a $300,000 thousand long term note agreement with Everest Reinsurance Company, an affiliated company, as of December 17, 2019. The note will pay interest annually at a rate of 1.69 % and is scheduled to mature in December, 2028. At December 31, 2020 and 2019, this transaction was presented as a Long Term Note Payable – Affiliated in the Consolidated Balance sheets of Everest Re Group, Ltd.

3.) Everest Re Group, Ltd. has invested funds in the segregated accounts of Mt. Logan Re, Ltd. (“Mt. Logan Re”), an affiliated entity. On the Condensed Balance Sheets, investments in Mt. Logan Re valued at $67,645 thousand and $46,390 thousand as of December 31, 2020 and 2019, respectively, have been recorded within Other Assets. On the Condensed Statements of Operations, income of $6,255 thousand, income of $765 thousand and expense of $4,695 thousand for the years ended December 31, 2020, 2019 and 2018, respectively, have been recorded in other income (expense).