RE - Everest Re Group Reports Second Quarter 2021 Results
Net Income of $680 Million
35% Growth in Gross Written Premium with an 89.3% Combined Ratio
Everest Re Group, Ltd. (“Everest” or the “Company”) today reported its 2021 second quarter results.
Second Quarter 2021 Highlights
- Net income of $680 million equal to $16.95 per share
- Net operating income of $587 million, equal to $14.63 per share
- Gross written premium growth of 35% and net written premium growth of 39%
- GAAP calendar year combined ratio of 89.3%, an 8-point improvement year over year, and attritional combined ratio of 87.6%, a 0.9 point improvement year over year
- Underwriting income of $274 million inclusive of pre-tax net catastrophe losses of $45 million primarily from several global events in the Quarter.
- No change to Covid-19 Pandemic (“Pandemic”) loss provision of $511 million
- Operating cashflow of $724 million for the quarter
The following table summarizes the Company’s net income and related financial metrics.
| Net income and operating income |
| Q2 |
| Year to Date |
| Q2 |
| Year to Date |
| All values in USD millions except for per share amounts and percentages |
| 2021 |
| 2021 |
|
|
| 2020 |
| 2020 |
| Everest Re Group |
| Net income |
| 680.0 |
| 1,021.8 |
| 190.9 |
| 207.5 |
| Net operating income (loss) |
| 587.0 |
| 847.2 |
| 82.9 |
| 247.3 |
| Net income per diluted common share |
| 16.95 |
| 25.47 |
| 4.77 |
| 5.13 |
| Net operating income per diluted common share |
| 14.63 |
| 21.12 |
| 2.07 |
| 6.12 |
| Net income annualized return on average equity |
| 28.4% |
| 21.6% |
| 8.9% |
| 4.7% |
| Net operating income annualized return on average equity |
| 24.5% |
| 17.9% |
| 3.9% |
| 5.6% |
| Period end equity and book value |
| Q2 2021 |
| Year to Date |
| Q4 2020 |
| Shareholders' equity |
| 10,416.8 |
| 9,726.2 |
| Book value per share |
| 260.32 |
| 243.25 |
| Change in BVPS adjusted for dividends |
| 8.3% |
| Total Shareholder Return ("TSR") - Annualized |
| 22.5% |
| Notes |
| 1/ Refer to the reconciliation of net income to net operating income found on page 6 of this press release |
Everest Re Group President & CEO Juan C. Andrade commented on the Company’s results:
“Everest had an excellent quarter across the board with very strong growth and outstanding underwriting and investment performance. These results serve as the foundation for our exceptional net income result of $1.02 billion through the first half of 2021 and are another important step toward achieving our strategic plan objectives. Everest achieved an annualized Total Shareholder Return (“TSR”) of 22.5% through the first half of 2021, exceeding our strategic plan target of 13.0%. Everest capitalized on market opportunities to expand our franchises in both reinsurance and insurance, driven by the relentless execution of our strategies and the valuable risk solutions provided to our customers and broker partners. Our focus on disciplined underwriting drove strong profitability in both reinsurance and insurance across our global operations. Finally, the standout performance this quarter demonstrates the quality of Everest’s diversified earnings, and it is an important step toward achieving our strategic objectives and the commitments made to our shareholders.”
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 |
| Q2 |
| Year to Date |
| Q2 |
| Year to Date |
| Year on Year Change |
| All values in USD millions except for percentages |
| 2021 |
| 2021 |
|
|
| 2020 |
| 2020 |
|
|
| Q2 |
| Year to Date |
| Gross written premium |
| 3,190.1 |
| 6,121.6 |
| 2,369.3 |
| 4,940.2 |
| 34.6% |
| 23.9% |
| Net written premium |
| 2,809.4 |
| 5,363.3 |
| 2,017.5 |
| 4,219.0 |
| 39.3% |
| 27.1% |
| Loss ratio |
| 62.0% |
| 66.7% |
| 68.9% |
| 69.6% |
| -6.9 pts |
| -2.9 pts |
| Commission and brokerage ratio |
| 21.8% |
| 21.2% |
| 22.8% |
| 22.4% |
| -1.0 pts |
| -1.2 pts |
| Other underwriting expenses |
| 5.5% |
| 5.7% |
| 5.8% |
| 6.1% |
| -0.3 pts |
| -0.4 pts |
| Combined ratio |
| 89.3% |
| 93.6% |
| 97.5% |
| 98.1% |
| -8.2 pts |
| -4.5 pts |
| Attritional combined ratio |
| 87.6% |
| 87.4% |
| 88.5% |
| 89.1% |
| -0.9 pts |
| -1.7 pts |
| Pre-tax net catastrophe losses |
| 45.0 |
| 305.0 |
| 15.0 |
| 45.0 |
| Pre-tax net covid losses |
| - |
| - |
| 160.0 |
| 310.0 |
| Pre-tax net prior year reserve development |
| (2.6) |
| (4.5) |
| 5.3 |
| 2.7 |
| 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
- The reinsurance segment recorded 40% growth in gross written premiums for the quarter. This growth reflects the strength of the Everest global franchise, as we saw broad demand for our reinsurance solutions in the US and across the world, notably in Europe, Bermuda, London, and Latin America.
- Our growth was well balanced by product line and geography and illustrates our ability to deploy capital strategically in attractive markets and in attractive and diversifying product lines.
- We had favorable renewals at April 1 and June 1 and we continue to write a stronger, less volatile, more diversified, and more profitable book on a risk adjusted basis.
| Underwriting information - Reinsurance segment |
| Q2 |
| Year to Date |
| Q2 |
| Year to Date |
| Year on Year Change |
| All values in USD millions except for percentages |
| 2021 |
| 2021 |
|
|
| 2020 |
| 2020 |
|
|
| Q2 |
| Year to Date |
| Gross written premium |
| 2,148.2 |
| 4,207.3 |
| 1,538.3 |
| 3,316.1 |
| 39.6% |
| 26.9% |
| Net written premium |
| 2,059.9 |
| 3,972.9 |
| 1,424.1 |
| 3,037.2 |
| 44.6% |
| 30.8% |
| Loss ratio |
| 60.8% |
| 66.0% |
| 67.0% |
| 67.8% |
| -6.2 pts |
| -1.8 pts |
| Commission and brokerage ratio |
| 24.6% |
| 23.8% |
| 25.8% |
| 25.4% |
| -1.2 pts |
| -1.6 pts |
| Other underwriting expenses |
| 2.5% |
| 2.7% |
| 2.6% |
| 2.8% |
| -0.1 pts |
| -0.1 pts |
| Combined ratio |
| 87.9% |
| 92.5% |
| 95.4% |
| 96.0% |
| -7.5 pts |
| -3.5 pts |
| Attritional combined ratio |
| 86.1% |
| 85.8% |
| 86.7% |
| 87.2% |
| -0.6 pts |
| -1.4 pts |
| Pre-tax net catastrophe losses |
| 35.0 |
| 247.5 |
| - |
| 24.5 |
| Pre-tax net covid losses |
| - |
| - |
| 131.0 |
| 241.0 |
| Pre-tax net prior year reserve development |
| (1.4) |
| (3.3) |
| 0.8 |
| (1.8) |
| 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
- Everest Insurance reported our first ever quarter with over $1.0 billion in gross written premium, reflecting 25% growth year over year. New business in North America was the most significant contributor to this growth, as the economy regains momentum and our responsive and focused product offerings continue to resonate with our broker partners and insureds.
- We continue to expand our margins and the attritional loss ratio improvement for the quarter reflects the continuing success of our nimble and disciplined underwriting process, reacting quickly to market conditions to best position our portfolio for long term profitability.
| Underwriting information - Insurance segment |
| Q2 |
| Year to Date |
| Q2 |
| Year to Date |
| Year on Year Change |
| All values in USD millions except for percentages |
| 2021 |
| 2021 |
|
|
| 2020 |
| 2020 |
|
|
| Q2 |
| Year to Date |
| Gross written premium |
| 1,041.9 |
| 1,914.3 |
| 831.0 |
| 1,624.1 |
| 25.4% |
| 17.9% |
| Net written premium |
| 749.5 |
| 1,390.5 |
| 593.4 |
| 1,181.8 |
| 26.3% |
| 17.7% |
| Loss ratio |
| 65.6% |
| 68.7% |
| 74.3% |
| 74.3% |
| -8.7 pts |
| -5.6 pts |
| Commission and brokerage ratio |
| 13.3% |
| 13.2% |
| 14.6% |
| 14.4% |
| -1.3 pts |
| -1.2 pts |
| Other underwriting expenses |
| 14.6% |
| 14.8% |
| 14.5% |
| 15.0% |
| 0.1 pts |
| -0.2 pts |
| Combined ratio |
| 93.5% |
| 96.7% |
| 103.4% |
| 103.7% |
| -9.9 pts |
| -7.0 pts |
| Attritional combined ratio |
| 92.1% |
| 92.2% |
| 93.7% |
| 94.3% |
| -1.6 pts |
| -2.1 pts |
| Pre-tax net catastrophe losses |
| 10.0 |
| 57.5 |
| 15.0 |
| 20.5 |
| Pre-tax net covid losses |
| - |
| - |
| 29.0 |
| 69.0 |
| Pre-tax net prior year reserve development |
| (1.2) |
| (1.2) |
| 4.5 |
| 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
- Net investment income of $407 million for the quarter including alternative investment gains of $266 million for the quarter
- Total invested assets and cash of $27.1 billion at June 30, 2021, 6.3% growth versus year end 2020
- Shareholders’ equity of $10.4 billion as of June 30, 2021
- Book value per diluted share of $260.32 at June 30, 2021
- Common share dividends declared and paid in the quarter of $1.55 per share, equal to $62.0 million
- Common share repurchases of $16.8 million during the quarter, representing 68,100 shares at an average price of $246.44 per share
| Equity and Book Value per Share |
| Q2 |
| Year to Date |
| Q2 |
| Year to Date |
| All values in USD millions except for per share amounts and percentages |
| 2021 |
| 2021 |
|
|
| 2020 |
| 2020 |
| Beginning shareholders' equity |
| 9,682.9 |
| 9,726.2 |
| 8,580.9 |
| 9,132.9 |
| Net income |
| 680.0 |
| 1,021.8 |
| 190.9 |
| 207.5 |
| Change in investment unrealized gains (URAD) |
| 85.8 |
| (206.5) |
| 544.5 |
| 296.5 |
| Dividends to shareholders |
| (62.0) |
| (124.3) |
| (61.9) |
| (125.2) |
| Purchase of treasury shares |
| (16.8) |
| (40.3) |
| - |
| (200.0) |
| Other |
| 46.9 |
| 39.9 |
| 31.9 |
| (25.4) |
| Ending shareholders' equity |
| 10,416.8 |
| 10,416.8 |
| 9,286.3 |
| 9,286.3 |
| Diluted common shares outstanding |
| 40.0 |
| 40.0 |
| 40.0 |
| 40.0 |
| Book value per diluted common share |
| 260.32 |
| 260.32 |
| 232.32 |
| 232.32 |
| Common share dividends paid - last 12 months |
| 6.20 |
| 6.20 |
| 6.05 |
| 6.05 |
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.
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 second quarter results will be held at 8:00 a.m. Eastern Time on July 29, 2021. 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/Financial Reports/Quarterly Reports” 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 June 30, |
| Six Months Ended June 30, |
| (Dollars in thousands, except per share amounts) |
| 2021 |
| 2020 |
|
|
|
|
| 2021 |
| 2020 |
| (unaudited) |
| (unaudited) |
| Per Diluted |
| Per Diluted |
| Amount |
| Share |
| Amount |
| Share |
| Amount |
| Share |
| Amount |
| Share |
| Net income (loss) |
| $ |
| 679,982 |
| $ |
| 16.95 |
| $ |
| 190,880 |
|
|
| $ |
| 4.77 |
|
|
| $ |
| 1,021,844 |
| $ |
| 25.47 |
| $ |
| 207,492 |
|
|
| $ |
| 5.13 |
|
|
| After-tax net realized capital gains (losses) |
| $ |
| 83,752 |
| $ |
| 2.09 |
| $ |
| 150,519 |
|
|
| $ |
| 3.76 |
|
|
| $ |
| 113,787 |
| $ |
| 2.84 |
| $ |
| (21,844 |
| ) |
| $ |
| (0.54 |
| ) |
| After-tax net foreign exchange income (expense) |
| $ |
| 9,222 |
| $ |
| 0.23 |
| $ |
| (42,528 |
| ) |
| $ |
| (1.06 |
| ) |
| $ |
| 60,840 |
| $ |
| 1.52 |
| $ |
| (17,924 |
| ) |
| $ |
| (0.44 |
| ) |
| After-tax operating income (loss) |
| $ |
| 587,008 |
| $ |
| 14.63 |
| $ |
| 82,889 |
|
|
| $ |
| 2.07 |
|
|
| $ |
| 847,217 |
| $ |
| 21.12 |
| $ |
| 247,260 |
|
|
| $ |
| 6.12 |
|
|
| (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 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--
| EVEREST RE GROUP, LTD. |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| AND COMPREHENSIVE INCOME (LOSS) |
| Three Months Ended |
| Six Months Ended |
| June 30, |
| June 30, |
| (Dollars in thousands, except per share amounts) |
|
|
| 2021 |
|
|
|
|
|
|
| 2020 |
|
|
|
|
|
|
| 2021 |
|
|
|
|
|
|
| 2020 |
|
|
| (unaudited) |
| (unaudited) |
| REVENUES: |
| Premiums earned |
| $ |
| 2,558,372 |
|
|
| $ |
| 2,042,405 |
|
|
| $ |
| 4,946,237 |
|
|
| $ |
| 4,079,219 |
|
|
| Net investment income |
|
|
| 407,095 |
|
|
|
|
| 38,083 |
|
|
|
|
| 667,508 |
|
|
|
|
| 185,883 |
|
|
| Net realized capital gains (losses): |
| Credit allowances on fixed maturity securities |
|
|
| (15,927 |
| ) |
|
|
| (4,063 |
| ) |
|
|
| (22,904 |
| ) |
|
|
| (25,837 |
| ) |
| Other net realized capital gains (losses) |
|
|
| 120,036 |
|
|
|
|
| 188,711 |
|
|
|
|
| 165,915 |
|
|
|
|
| (103 |
| ) |
| Total net realized capital gains (losses) |
|
|
| 104,109 |
|
|
|
|
| 184,648 |
|
|
|
|
| 143,011 |
|
|
|
|
| (25,940 |
| ) |
| Other income (expense) |
|
|
| 7,114 |
|
|
|
|
| (20,621 |
| ) |
|
|
| 63,707 |
|
|
|
|
| (12,631 |
| ) |
| Total revenues |
|
|
| 3,076,690 |
|
|
|
|
| 2,244,515 |
|
|
|
|
| 5,820,463 |
|
|
|
|
| 4,226,531 |
|
|
| CLAIMS AND EXPENSES: |
| Incurred losses and loss adjustment expenses |
|
|
| 1,586,141 |
|
|
|
|
| 1,407,016 |
|
|
|
|
| 3,297,560 |
|
|
|
|
| 2,837,856 |
|
|
| Commission, brokerage, taxes and fees |
|
|
| 557,749 |
|
|
|
|
| 466,316 |
|
|
|
|
| 1,046,760 |
|
|
|
|
| 914,838 |
|
|
| Other underwriting expenses |
|
|
| 140,844 |
|
|
|
|
| 118,130 |
|
|
|
|
| 283,075 |
|
|
|
|
| 246,990 |
|
|
| Corporate expenses |
|
|
| 16,168 |
|
|
|
|
| 8,733 |
|
|
|
|
| 28,546 |
|
|
|
|
| 18,566 |
|
|
| Interest, fees and bond issue cost amortization expense |
|
|
| 15,607 |
|
|
|
|
| 7,253 |
|
|
|
|
| 31,246 |
|
|
|
|
| 14,836 |
|
|
| Total claims and expenses |
|
|
| 2,316,509 |
|
|
|
|
| 2,007,448 |
|
|
|
|
| 4,687,187 |
|
|
|
|
| 4,033,086 |
|
|
| INCOME (LOSS) BEFORE TAXES |
|
|
| 760,181 |
|
|
|
|
| 237,067 |
|
|
|
|
| 1,133,276 |
|
|
|
|
| 193,445 |
|
|
| Income tax expense (benefit) |
|
|
| 80,199 |
|
|
|
|
| 46,187 |
|
|
|
|
| 111,432 |
|
|
|
|
| (14,047 |
| ) |
| NET INCOME (LOSS) |
| $ |
| 679,982 |
|
|
| $ |
| 190,880 |
|
|
| $ |
| 1,021,844 |
|
|
| $ |
| 207,492 |
|
|
| Other comprehensive income (loss), net of tax: |
| Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period |
|
|
| 84,171 |
|
|
|
|
| 551,753 |
|
|
|
|
| (204,444 |
| ) |
|
|
| 272,354 |
|
|
| Reclassification adjustment for realized losses (gains) included in net income (loss) |
|
|
| 1,590 |
|
|
|
|
| (7,257 |
| ) |
|
|
| (2,076 |
| ) |
|
|
| 24,142 |
|
|
| Total URA(D) on securities arising during the period |
|
|
| 85,761 |
|
|
|
|
| 544,496 |
|
|
|
|
| (206,520 |
| ) |
|
|
| 296,496 |
|
|
| Foreign currency translation adjustments |
|
|
| 34,295 |
|
|
|
|
| 20,586 |
|
|
|
|
| 24,713 |
|
|
|
|
| (30,238 |
| ) |
| Reclassification adjustment for amortization of net (gain) loss included in net income (loss) |
|
|
| 2,043 |
|
|
|
|
| 1,806 |
|
|
|
|
| 4,086 |
|
|
|
|
| 2,726 |
|
|
| Total benefit plan net gain (loss) for the period |
|
|
| 2,043 |
|
|
|
|
| 1,806 |
|
|
|
|
| 4,086 |
|
|
|
|
| 2,726 |
|
|
| Total other comprehensive income (loss), net of tax |
|
|
| 122,099 |
|
|
|
|
| 566,888 |
|
|
|
|
| (177,721 |
| ) |
|
|
| 268,984 |
|
|
| COMPREHENSIVE INCOME (LOSS) |
| $ |
| 802,081 |
|
|
| $ |
| 757,768 |
|
|
| $ |
| 844,123 |
|
|
| $ |
| 476,476 |
|
|
| EARNINGS PER COMMON SHARE: |
| Basic |
| $ |
| 16.97 |
|
|
| $ |
| 4.78 |
|
|
| $ |
| 25.50 |
|
|
| $ |
| 5.14 |
|
|
| Diluted |
|
|
| 16.95 |
|
|
|
|
| 4.77 |
|
|
|
|
| 25.47 |
|
|
|
|
| 5.13 |
|
|
| EVEREST RE GROUP, LTD. |
| CONSOLIDATED BALANCE SHEETS |
| June 30, |
| 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 |
| $ |
| 21,275,199 |
|
|
| $ |
| 20,040,173 |
|
|
| (amortized cost: 2021, $20,718,717; 2020, $19,225,067, credit allowances: 2021, ($24,650); 2020, ($1,745)) |
| Equity securities, at fair value |
|
|
| 1,485,833 |
|
|
|
|
| 1,472,236 |
|
|
| Short-term investments (cost: 2021, $629,943; 2020, $1,135,088) |
|
|
| 629,943 |
|
|
|
|
| 1,134,950 |
|
|
| Other invested assets (cost: 2021, $2,558,631; 2020, $2,012,581) |
|
|
| 2,558,631 |
|
|
|
|
| 2,012,581 |
|
|
| Cash |
|
|
| 1,106,345 |
|
|
|
|
| 801,651 |
|
|
| Total investments and cash |
|
|
| 27,055,951 |
|
|
|
|
| 25,461,591 |
|
|
| Accrued investment income |
|
|
| 170,907 |
|
|
|
|
| 141,304 |
|
|
| Premiums receivable |
|
|
| 3,199,024 |
|
|
|
|
| 2,680,562 |
|
|
| Reinsurance receivables |
|
|
| 2,032,363 |
|
|
|
|
| 1,994,555 |
|
|
| Funds held by reinsureds |
|
|
| 798,780 |
|
|
|
|
| 716,655 |
|
|
| Deferred acquisition costs |
|
|
| 748,897 |
|
|
|
|
| 622,053 |
|
|
| Prepaid reinsurance premiums |
|
|
| 495,657 |
|
|
|
|
| 412,015 |
|
|
| Income taxes net recoverable |
|
|
| - |
|
|
|
|
| 17,253 |
|
|
| Other assets |
|
|
| 868,477 |
|
|
|
|
| 742,369 |
|
|
| TOTAL ASSETS |
| $ |
| 35,370,056 |
|
|
| $ |
| 32,788,357 |
|
|
| LIABILITIES: |
| Reserve for losses and loss adjustment expenses |
|
|
| 17,645,762 |
|
|
|
|
| 16,398,997 |
|
|
| Future policy benefit reserve |
|
|
| 36,497 |
|
|
|
|
| 37,723 |
|
|
| Unearned premium reserve |
|
|
| 4,024,050 |
|
|
|
|
| 3,501,359 |
|
|
| Funds held under reinsurance treaties |
|
|
| 17,520 |
|
|
|
|
| 15,807 |
|
|
| Other net payable to reinsurers |
|
|
| 379,524 |
|
|
|
|
| 294,347 |
|
|
| Losses in course of payment |
|
|
| 198,352 |
|
|
|
|
| 127,971 |
|
|
| Senior notes due 6/1/2044 |
|
|
| 397,254 |
|
|
|
|
| 397,194 |
|
|
| Senior notes due 10/1/2050 |
|
|
| 979,784 |
|
|
|
|
| 979,524 |
|
|
| Long term notes due 5/1/2067 |
|
|
| 223,724 |
|
|
|
|
| 223,674 |
|
|
| Borrowings from FHLB |
|
|
| 310,000 |
|
|
|
|
| 310,000 |
|
|
| Accrued interest on debt and borrowings |
|
|
| 9,641 |
|
|
|
|
| 10,460 |
|
|
| Unsettled securities payable |
|
|
| 124,559 |
|
|
|
|
| 206,693 |
|
|
| Income taxes net payable |
|
|
| 35,089 |
|
|
|
|
| - |
|
|
| Other liabilities |
|
|
| 571,511 |
|
|
|
|
| 558,432 |
|
|
| Total liabilities |
|
|
| 24,953,267 |
|
|
|
|
| 23,062,181 |
|
|
| 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) 69,817 |
| and (2020) 69,620 outstanding before treasury shares |
|
|
| 698 |
|
|
|
|
| 696 |
|
|
| Additional paid-in capital |
|
|
| 2,256,390 |
|
|
|
|
| 2,245,301 |
|
|
| Accumulated other comprehensive income (loss), net of deferred income tax expense |
| (benefit) of $56,797 at 2021 and $80,451 at 2020 |
|
|
| 357,178 |
|
|
|
|
| 534,899 |
|
|
| Treasury shares, at cost; 29,802 shares (2021) and 29,636 shares (2020) |
|
|
| (3,662,499 |
| ) |
|
|
| (3,622,172 |
| ) |
| Retained earnings |
|
|
| 11,465,022 |
|
|
|
|
| 10,567,452 |
|
|
| Total shareholders' equity |
|
|
| 10,416,789 |
|
|
|
|
| 9,726,176 |
|
|
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
| $ |
| 35,370,056 |
|
|
| $ |
| 32,788,357 |
|
|
| EVEREST RE GROUP, LTD. |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| Six Months Ended |
| June 30, |
| (Dollars in thousands) |
|
|
| 2021 |
|
|
|
|
| 2020 |
|
|
| (unaudited) |
| CASH FLOWS FROM OPERATING ACTIVITIES: |
| Net income (loss) |
| $ |
| 1,021,844 |
|
|
| $ |
| 207,492 |
|
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
| Decrease (increase) in premiums receivable |
|
|
| (499,647 |
| ) |
|
|
| (252,609 |
| ) |
| Decrease (increase) in funds held by reinsureds, net |
|
|
| (79,485 |
| ) |
|
|
| (23,498 |
| ) |
| Decrease (increase) in reinsurance receivables |
|
|
| 15,836 |
|
|
|
|
| (147,515 |
| ) |
| Decrease (increase) in income taxes |
|
|
| 76,452 |
|
|
|
|
| (25,000 |
| ) |
| Decrease (increase) in prepaid reinsurance premiums |
|
|
| (71,566 |
| ) |
|
|
| (29,699 |
| ) |
| Increase (decrease) in reserve for losses and loss adjustment expenses |
|
|
| 1,144,620 |
|
|
|
|
| 800,816 |
|
|
| Increase (decrease) in future policy benefit reserve |
|
|
| (1,226 |
| ) |
|
|
| (1,933 |
| ) |
| Increase (decrease) in unearned premiums |
|
|
| 500,077 |
|
|
|
|
| 159,744 |
|
|
| Increase (decrease) in other net payable to reinsurers |
|
|
| 72,850 |
|
|
|
|
| 89,499 |
|
|
| Increase (decrease) in losses in course of payment |
|
|
| 70,653 |
|
|
|
|
| 147,427 |
|
|
| Change in equity adjustments in limited partnerships |
|
|
| (377,120 |
| ) |
|
|
| 84,066 |
|
|
| Distribution of limited partnership income |
|
|
| 49,053 |
|
|
|
|
| 40,447 |
|
|
| Change in other assets and liabilities, net |
|
|
| (211,735 |
| ) |
|
|
| (10,313 |
| ) |
| Non-cash compensation expense |
|
|
| 22,439 |
|
|
|
|
| 19,175 |
|
|
| Amortization of bond premium (accrual of bond discount) |
|
|
| 37,928 |
|
|
|
|
| 20,547 |
|
|
| Net realized capital (gains) losses |
|
|
| (143,011 |
| ) |
|
|
| 25,940 |
|
|
| Net cash provided by (used in) operating activities |
|
|
| 1,627,962 |
|
|
|
|
| 1,104,586 |
|
|
| CASH FLOWS FROM INVESTING ACTIVITIES: |
| Proceeds from fixed maturities matured/called - available for sale, at market value |
|
|
| 1,897,536 |
|
|
|
|
| 1,261,650 |
|
|
| Proceeds from fixed maturities sold - available for sale, at market value |
|
|
| 599,737 |
|
|
|
|
| 990,273 |
|
|
| Proceeds from equity securities sold, at fair value |
|
|
| 474,663 |
|
|
|
|
| 213,185 |
|
|
| Distributions from other invested assets |
|
|
| 112,398 |
|
|
|
|
| 164,975 |
|
|
| Cost of fixed maturities acquired - available for sale, at market value |
|
|
| (3,949,973 |
| ) |
|
|
| (2,301,701 |
| ) |
| Cost of equity securities acquired, at fair value |
|
|
| (360,016 |
| ) |
|
|
| (224,086 |
| ) |
| Cost of other invested assets acquired |
|
|
| (309,691 |
| ) |
|
|
| (343,332 |
| ) |
| Net change in short-term investments |
|
|
| 506,285 |
|
|
|
|
| (439,457 |
| ) |
| Net change in unsettled securities transactions |
|
|
| (103,527 |
| ) |
|
|
| 49,504 |
|
|
| Net cash provided by (used in) investing activities |
|
|
| (1,132,588 |
| ) |
|
|
| (628,989 |
| ) |
| CASH FLOWS FROM FINANCING ACTIVITIES: |
| Common shares issued during the period for share-based compensation, net of expense |
|
|
| (11,349 |
| ) |
|
|
| (12,841 |
| ) |
| Purchase of treasury shares |
|
|
| (40,328 |
| ) |
|
|
| (200,019 |
| ) |
| Dividends paid to shareholders |
|
|
| (124,274 |
| ) |
|
|
| (125,205 |
| ) |
| Cost of debt repurchase |
|
|
| - |
|
|
|
|
| (10,647 |
| ) |
| Cost of shares withheld on settlements of share-based compensation awards |
|
|
| (13,713 |
| ) |
|
|
| (14,141 |
| ) |
| Net cash provided by (used in) financing activities |
|
|
| (189,664 |
| ) |
|
|
| (362,853 |
| ) |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH |
|
|
| (1,016 |
| ) |
|
|
| 1,699 |
|
|
| Net increase (decrease) in cash |
|
|
| 304,694 |
|
|
|
|
| 114,443 |
|
|
| Cash, beginning of period |
|
|
| 801,651 |
|
|
|
|
| 808,036 |
|
|
| Cash, end of period |
| $ |
| 1,106,345 |
|
|
| $ |
| 922,479 |
|
|
| SUPPLEMENTAL CASH FLOW INFORMATION: |
| Income taxes paid (recovered) |
| $ |
| 34,780 |
|
|
| $ |
| 10,895 |
|
|
| Interest paid |
|
|
| 31,695 |
|
|
|
|
| 14,992 |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210728005986/en/
Investors and Media:
Jon Levenson
Head of Investor Relations
Everest Global Services, Inc.
908.604.3169