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Schedule II - Condensed Financial Information Of The Registrant

12 Months Ended

Dec. 31, 2021

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)	2021			2020

ASSETS:
Fixed maturities - available for sale	$	-		$	3
(amortized cost: 2021, $0; 2020, $3)
Other invested assets (cost: 2021, $211,612; 2020, $282,762)		211,612			282,762
Cash		3,253			884
Investment in subsidiaries, at equity in the underlying net assets		10,353,351			9,660,713
Accrued investment income		-			-
Receivable from subsidiaries		9,936			18,424
Other assets		50,061			64,692
TOTAL ASSETS	$	10,628,213		$	10,027,478

LIABILITIES:
Long term notes payable, affiliated	$	500,000		$	300,000
Due to subsidiaries		1,622			1,933
Other liabilities		(12,589)			(631)
Total liabilities		489,033			301,302

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) 69,790and (2020) 69,620 issued 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	$	10,628,213		$	10,027,478

See notes to consolidated financial statements.

SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

CONDENSED STATEMENTS OF OPERATIONS

	Years Ended December 31,
		2021			2020			2019
(Dollars in thousands)
REVENUES:
Net investment income	$	228		$	1,121		$	3,484
Net realized capital gains (losses)		-			28			(66)
Other income (expense)		(185)			5,833			458
Net income (loss) of subsidiaries		1,416,451			535,866			1,026,233
Total revenues		1,416,494			542,848			1,030,109

EXPENSES:
Interest expense - affiliated		5,952			5,155			2,087
Other expenses		31,459			23,542			18,561
Total expenses		37,411			28,697			20,648

INCOME (LOSS) BEFORE TAXES		1,379,083			514,151			1,009,461

NET INCOME (LOSS)	$	1,379,083		$	514,151		$	1,009,461

Other comprehensive income (loss), net of tax:
Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period		(488,378)			423,210			496,430
Reclassification adjustment for realized losses (gains) included in net income (loss)		3,616			(3,476)			(12,613)
Total URA(D) on securities arising during the period		(484,762)			419,734			483,817

Foreign currency translation adjustments		(62,091)			86,327			14,030

Benefit plan actuarial net gain (loss) for the period		6,250			(5,615)			(12,591)
Reclassification adjustment for amortization of net (gain) loss included in net income (loss)		17,227			6,300			5,453
Total benefit plan net gain (loss) for the period		23,478			685			(7,138)
Total other comprehensive income (loss), net of tax		(523,375)			506,746			490,709

COMPREHENSIVE INCOME (LOSS)	$	855,708		$	1,020,897		$	1,500,170



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)		2021			2020			2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	1,379,083		$	514,151		$	1,009,461
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in retained (earnings) deficit of subsidiaries		(1,416,451)			(535,866)			(1,026,233)
Dividends received from subsidiaries		320,000			650,000			600,000
Change in other assets and liabilities, net		2,676			(21,145)			564
Increase (decrease) in due to/from affiliates		8,176			(8,621)			(2,209)
Amortization of bond premium (accrual of bond discount)		-			(14)			(9)
Realized capital losses (gains)		-			(28)			66
Non-cash compensation expense		2,481			2,588			2,796
Net cash provided by (used in) operating activities		295,965			601,065			584,436

CASH FLOWS FROM INVESTING ACTIVITIES:
Additional investment in subsidiaries		(119,598)			(138,320)			(478,125)
Proceeds from fixed maturities matured/called - available for sale, at market value		3			1,356			63
Proceeds from fixed maturities sold - available for sale, at market value		-			200,264			74,841
Distribution from other invested assets		606,648			559,767			644,918
Cost of fixed maturities acquired - available for sale, at market value		-			-			(200,267)
Cost of other invested assets acquired		(535,499)			(800,828)			(686,528)
Net change in short-term investments		-			-			-
Net cash provided by (used in) investing activities		(48,446)			(177,761)			(645,098)

CASH FLOWS FROM FINANCING ACTIVITIES:
Common shares issued during the period, net		26,685			23,185			22,861
Purchase of treasury shares		(225,136)			(200,020)			(24,604)
Dividends paid to shareholders		(246,699)			(249,056)			(234,322)
Proceeds from issuance (cost of repayment) of long term notes payable - affiliated		200,000			-			300,000
Net cash provided by (used in) financing activities		(245,150)			(425,891)			63,935

EFFECT OF EXCHANGE RATE CHANGES ON CASH		-			-			-

Net increase (decrease) in cash		2,369			(2,587)			3,273
Cash, beginning of period		884			3,471			198
Cash, end of period	$	3,253		$	884		$	3,471

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 million 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, 2021 and 2020, this transaction was presented as a Long Term Note Payable – Affiliated in the Condensed Balance sheets of Everest Re Group, Ltd.

3.) Everest Re Group, Ltd. entered into a $200 million long term note agreement with Everest Reinsurance Company, an affiliated company, as of August 5, 2021. The note will pay interest annually at a rate of 1.00 % and is scheduled to mature in August 2030. At December 31, 2021, this transaction was presented as a Long Term Note Payable – Affiliated in the Condensed Balance sheets of Everest Re Group, Ltd.

4.) 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 $66.3 million and $67.6 million as of December 31, 2021 and 2020, respectively, have been recorded within Other Assets. On the Condensed Statements of Operations, income (expense) of $1.3 million, $6.3 million and $0.8 million for the years ended December 31, 2021, 2020 and 2019, respectively, have been recorded in other income (expense).