EX-99.1 5 ex991.htm EXHIBIT 99-1 ex991
ex991p1i0.gif
 
 
 
1
N
EWS
R
ELEASE
EVEREST RE GROUP,
 
LTD.
Seon Place, 141 Front Street, 4
th
 
Floor, Hamilton HM 19, Bermuda
Contacts
Media: Dawn Lauer
 
Investors: Jon Levenson
Chief Communications Officer
 
Head of Investor Relations
Everest Global Services, Inc.
 
Everest Global Services, Inc.
908.300.7670
 
908.604.3169
 
 
Everest Re Group Reports Fourth Quarter and Full Year
 
2021 Results
25% Growth in Gross Written Premium
 
and a 91.9% Combined Ratio for the Quarter
$431 Million of Net Income for the Quarter and a 14.7% Total
 
Shareholder Return for the Year
HAMILTON,
 
Bermuda --
 
(BUSINESS WIRE)
 
– February
 
9, 2022
 
– Everest Re Group, Ltd. (“Everest” or
the “Group”)
 
today reported its fourth quarter and full year 2021 results.
Fourth Quarter 2021 Highlights
●
Year
 
over
 
year
 
gross
 
written
 
premium
 
(“GWP”)
 
growth
 
of
 
25%
 
for
 
the
 
Group,
 
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-tax
 
underwriting
 
income
 
of
 
$228
 
million
 
including
 
pre-tax
 
catastrophe
 
losses
 
net
 
of
reinsurance and reinstatement premiums of $125 million
●
Pre-tax
 
net
 
investment
 
income
 
of
 
$205
 
million,
 
well
 
balanced
 
between
 
fixed
 
income
 
and
 
limited
partnership returns
●
$1.0 billion in 31-year, 3.125% coupon senior notes issued on October 4,
 
2021
 
 
 
 
2
Full Year
 
2021 Highlights
●
Net income of $1.380 billion representing a total shareholder return of 14.7%
●
Pre-tax net
 
investment income
 
of $1.165
 
billion, well
 
balanced between
 
fixed income
 
and limited
partnership returns
●
Pre-tax
 
underwriting
 
income
 
of
 
$224
 
million
 
inclusive
 
of
 
pre-tax
 
catastrophe
 
losses
 
net
 
of
reinsurance and reinstatement premiums of $1.065 billion
●
$13.0 billion in total 2021 GWP.
 
$9 billion reinsurance and $4 billion insurance
 
●
Year
 
over
 
year
 
gross
 
written
 
premium
 
(“GWP”)
 
growth
 
of
 
25%
 
for
 
the
 
Group,
 
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
●
Common
 
share
 
repurchases
 
of
 
$25
 
million
 
during
 
the
 
quarter
 
and
 
$225
 
million
 
for
 
the
 
full
 
year
2021
Everest Re Group President & CEO Juan C. Andrade commented on the Company’s
 
results:
“2021 was a pivotal year of continued profitable growth and momentum for Everest. We
 
finished 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 $431
 
million, equal to $10.94
 
per diluted share vs.
 
net income of $64
 
million, equal
to $1.59 per diluted share in the fourth quarter 2020
●
Net operating income $359 million, equal to $9.12 per diluted
 
share vs. net operating income (loss)
of $(44) million, equal to $(1.12) per share in the fourth quarter 2020
●
Underwriting
 
gain of
 
$228 million
 
including $125
 
million of
 
catastrophe
 
losses net
 
of recoveries
and
 
reinstatement
 
premiums.
 
Catastrophe
 
events
 
comprised
 
of
 
Canadian
 
drought
 
losses
 
of
 
$80
million and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3
quad-state tornado losses of $45 million.
●
GAAP combined
 
ratio of
 
91.9% which
 
includes 4.5
 
points
 
of catastrophe
 
losses vs.
 
2.9 points
 
of
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 financial
 
metrics.
Net income and operating income
Q4
Year
 
to Date
Q4
Year
 
to 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
 
Year
 
to 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
 
 
 
 
 
 
 
 
 
 
 
4
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 Year
 
Change
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
●
Reinsurance
 
achieved
 
excellent
 
growth
 
in
 
the
 
quarter,
 
up
 
26%
 
year
 
over
 
year
 
to
 
$2.4
 
billion.
 
The
growth
 
was
 
driven
 
by
 
continued
 
partnership
 
with
 
our
 
core
 
clients
 
and
 
Everest’s
 
position
 
as
 
a
preferred
 
reinsurer,
 
accelerated
 
by
 
strong
 
underlying
 
rate
 
movement.
 
Our
 
international
 
operations,
notably Europe, lead the growth
 
this quarter as we saw
 
increased demand for casualty and
 
multi-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 view
 
this as an attractive long-term business.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5
Underwriting information - Reinsurance segment
Q4
Year to Date
Q4
Year to Date
Year on Year
 
Change
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
 
●
Insurance
 
segment
 
catastrophe
 
losses
 
totaled
 
$15
 
million
 
net
 
of
 
recoveries
 
and
 
reinstatement
premiums for the quarter, all from the quad-state tornados.
 
 
 
 
 
 
 
 
 
 
 
 
6
Underwriting information - Insurance segment
Q4
Year to Date
Q4
Year to Date
Year on Year
 
Cgange
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
●
Total
 
invested assets and cash of $29.7 billion
 
at 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
●
Book
 
value
 
per
 
diluted
 
share
 
excluding
 
unrealized
 
gains
 
(losses)
 
on
 
fixed
 
income
 
investments
 
of
$252.12 at December 31, 2021 vs. $225.15 at year end 2020
●
Common
 
share
 
dividends declared
 
and paid
 
in
 
the quarter
 
of $1.55
 
per share
 
equal to
 
$61
 
million,
and $6.20 for the year equal to $247 million
●
Common
 
share
 
repurchases
 
of
 
$25
 
million
 
during
 
the
 
quarter,
 
representing
 
96,702
 
shares
 
at
 
an
average
 
price
 
of
 
$259.28
 
per
 
share.
 
For
 
the
 
full
 
year
 
2021,
 
common
 
share
 
repurchases
 
of
 
$225
million representing 887,622 shares at an average price of $253.64.
 
 
 
 
 
 
 
 
 
 
 
 
7
Equity and Book Value per Share
Q4
Year
 
to Date
Q4
Year
 
to 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
This
 
news
 
release
 
contains
 
forward-looking
 
statements
 
within
 
the
 
meaning
 
of
 
the
 
U.S.
 
federal
 
securities
laws. We
 
intend these
 
forward-looking
 
statements to
 
be covered
 
by the
 
safe harbor
 
provisions
 
for forward-
looking statements in the
 
U.S. Federal securities laws.
 
These statements involve risks
 
and uncertainties that
could cause
 
actual results
 
to differ
 
materially from
 
those contained
 
in forward-looking
 
statements made
 
on
behalf of the Company. These risks and uncertainties include the impact of general economic conditions and
conditions
 
affecting
 
the
 
insurance
 
and
 
reinsurance
 
industry,
 
the
 
adequacy
 
of
 
our
 
reserves,
 
our
 
ability
 
to
assess underwriting
 
risk, trends
 
in rates
 
for property
 
and casualty
 
insurance and
 
reinsurance,
 
competition,
investment
 
market
 
and
 
investment
 
income
 
fluctuations,
 
trends
 
in
 
insured
 
and
 
paid
 
losses,
 
catastrophes,
pandemic,
 
regulatory
 
and
 
legal
 
uncertainties
 
and
 
other
 
factors
 
described
 
in
 
our
 
latest
 
Annual
 
Report
 
on
Form
 
10-K.
 
The
 
Company
 
undertakes
 
no
 
obligation
 
to
 
publicly
 
update
 
or
 
revise
 
any
 
forward-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 leading
 
global provider of reinsurance
 
and insurance, operating for
close
 
to
 
50
 
years
 
through
 
subsidiaries
 
in
 
the
 
U.S.,
 
Europe,
 
Singapore,
 
Canada,
 
Bermuda,
 
and
 
other
territories.
Everest offers
 
property,
 
casualty,
 
and specialty
 
products through
 
its various
 
operating affiliates
 
located in
key markets around the world.
Everest common stock (NYSE:RE) is a component of the S&P 500 index.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8
Additional
 
information
 
about
 
Everest,
 
our
 
people,
 
and
 
our
 
products
 
can
 
be
 
found
 
on
 
our
 
website
 
at
www.everestre.com
. All issuing companies may not do business in all jurisdictions.
A conference call discussing
 
the fourth quarter results will be held at 8:00 a.m. Eastern Time on February 10,
2022.
 
The call
 
will be
 
available
 
on the
 
Internet
 
through
 
the Company’s
 
web site
 
at everestre.com/investors.
Recipients are encouraged
 
to visit the Company’s
 
web site to view
 
supplemental
 
financial information
 
on the
Company’s
 
results.
 
The
 
supplemental
 
information
 
is
 
located
 
at
www.everestre.com
 
in
 
the
“Investors/Financials/Quarterly
 
Results” section of the
 
website.
 
The supplemental financial information
 
may
also be
 
obtained
 
by contacting
 
the Company
 
directly.
_______________________________________________
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)
 
and
 
after-tax
 
net
 
foreign
 
exchange
 
income
 
(expense)
 
as
 
the
 
following
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 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 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
 
9
 
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
 
Details
 
Follow--
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10
EVEREST RE GROUP,
 
LTD.
CONSOLIDATED
 
STATEMENTS
 
OF 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 during
 
the 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.
CONSOLIDATED
 
BALANCE 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.
CONSOLIDATED
 
STATEMENTS
 
OF CASH FLOWS
 
Twelve Months Ended
 
December 31,
(Dollars in thousands)
2021
2020
(unaudited)
CASH FLOWS FROM OPERATING
 
ACTIVITIES:
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 RATE
 
CHANGES 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