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As Of Filer Filing For·On·As Docs:Size 3/30/18 Everest Reinsurance Holdings Inc 10-K 12/31/17 144:27M |
Document/Exhibit Description Pages Size 1: 10-K Annual Report -- holdings10k2017 HTML 1.98M 5: 10-K Holdings 10-K 2017 PDF Version -- holdings10k2017 PDF 871K 2: EX-31.1 Certification -- §302 - SOA'02 HTML 48K 3: EX-31.2 Certification -- §302 - SOA'02 HTML 48K 4: EX-32.1 Certification -- §906 - SOA'02 -- exhibit32-1 HTML 44K 12: R1 Document And Entity Information HTML 70K 13: R2 Consolidated Balance Sheets HTML 141K 14: R3 Consolidated Balance Sheets (Parenthetical) HTML 64K 15: R4 Consolidated Statements Of Operations And HTML 122K Comprehensive Income (Loss) 16: R5 Consolidated Statements Of Changes In HTML 74K Stockholder's Equity 17: R6 Consolidated Statements Of Cash Flows HTML 154K 18: R7 Summary Of Significant Accounting Policies HTML 88K 19: R8 Revisions To Financial Statements HTML 238K 20: R9 Investments HTML 445K 21: R10 Reserves For Losses And LAE HTML 806K 22: R11 Fair Value HTML 235K 23: R12 Senior Notes HTML 61K 24: R13 Long Term Subordinated Notes HTML 65K 25: R14 Collateralized Reinsurance And Trust Agreements HTML 52K 26: R15 Operating Lease Agreements HTML 54K 27: R16 Income Taxes HTML 131K 28: R17 Reinsurance HTML 186K 29: R18 Comprehensive Income (Loss) HTML 153K 30: R19 Employee Benefit Plans HTML 346K 31: R20 Dividend Restrictions And Statutory Financial HTML 55K Information 32: R21 Commitments And Contingencies HTML 53K 33: R22 Related-Party Transactions HTML 66K 34: R23 Segment Reporting HTML 127K 35: R24 Dispositions HTML 51K 36: R25 Subsequent Events HTML 44K 37: R26 Unaudited Quarterly Financial Data HTML 319K 38: R27 Schedule I - Summary Of Investments - Other Than HTML 93K Investments In Related Parties 39: R28 Schedule II - Condensed Financial Information Of HTML 244K The Registrant 40: R29 Schedule III - Supplementary Insurance Information HTML 153K 41: R30 Schedule IV - Reinsurance HTML 82K 42: R31 Summary Of Significant Accounting Policies HTML 123K (Policy) 43: R32 Summary Of Significant Accounting Policies HTML 53K (Tables) 44: R33 Revisions To Financial Statements (Tables) HTML 237K 45: R34 Investments (Tables) HTML 439K 46: R35 Reserves For Losses And LAE (Tables) HTML 785K 47: R36 Fair Value (Tables) HTML 220K 48: R37 Senior Notes (Tables) HTML 64K 49: R38 Long Term Subordinated Notes (Tables) HTML 62K 50: R39 Operating Lease Agreements (Tables) HTML 51K 51: R40 Income Taxes (Tables) HTML 124K 52: R41 Reinsurance (Tables) HTML 183K 53: R42 Comprehensive Income (Loss) (Tables) HTML 153K 54: R43 Employee Benefit Plans (Tables) HTML 369K 55: R44 Dividend Restrictions And Statutory Financial HTML 51K Information (Tables) 56: R45 Commitments And Contingencies (Tables) HTML 51K 57: R46 Related-Party Transactions (Tables) HTML 64K 58: R47 Segment Reporting (Tables) HTML 124K 59: R48 Unaudited Quarterly Financial Data (Tables) HTML 319K 60: R49 Summary of Significant Accounting Policies HTML 50K (Narrative) (Details) 61: R50 Summary of Significant Accounting Policies HTML 44K (Schedule Of Uncollectible Reinsurance Recoverable And Premium Receivables) (Details) 62: R51 Summary Of Significant Accounting Policies HTML 46K (Schedule Of Deferred Acquisition Costs Amortized To Income) (Details) 63: R52 Revisions To Financial Statements (Schedule of HTML 180K Prior Period Financial Statements) (Details) 64: R53 Investments (Narrative) (Details) HTML 106K 65: R54 Investments (Summary Of Unrealized Appreciation HTML 91K (Depreciation) Of Available For Sale, Fixed Maturity And Equity Security Investments) (Details) 66: R55 Investments (Summary Of Amortized Cost And Market HTML 86K Value Of Fixed Maturity Securities, By Contractual Maturity) (Details) 67: R56 Investments (Summary Of Changes In Net Unrealized HTML 61K Appreciation (Depreciation) For The Company's Investments) (Details) 68: R57 Investments (Summary Of Aggregate Market Value And HTML 98K Gross Unrealized Depreciation Of Fixed Maturity And Equity Securities, By Security Type) (Details) 69: R58 Investments (Summary Of Aggregate Market Value And HTML 89K Gross Unrealized Depreciation Of Fixed Maturity And Equity Securities, By Contractual Maturity) (Details) 70: R59 Investments (Summary Of Components Of Net HTML 73K Investment Income) (Details) 71: R60 Investments (Summary Of Components Of Net Realized HTML 86K Capital Gains (Losses)) (Details) 72: R61 Investments (Summary Of Gross Gains (Losses) From HTML 55K Sales Of Fixed Maturity And Equity Securities) (Details) 73: R62 Reserves For Losses And LAE (Narrative) (Details) HTML 107K 74: R63 Reserves For Losses And LAE (Summary Of Activity HTML 71K In The Reserve For Losses And LAE) (Details) 75: R64 Reserves For Losses And LAE (Incurred Loss And HTML 213K ALAE And Paid Loss And ALAE, Net Of Reinsurance) (Details) 76: R65 Reserves For Losses And LAE (Average Annual HTML 77K Percentage Payout Incurred Claims By Age, Net Of Reinsurance) (Details) 77: R66 Reserves For Losses And LAE (Reconciliation of the HTML 70K Net Incurred and Paid Claims Development) (Details) 78: R67 Reserves For Losses And LAE (Summary Of Incurred HTML 58K Losses With Respect To A&E Reserves On Both Gross And Net Of Reinsurance Basis) (Details) 79: R68 Fair Value (Narrative) (Details) HTML 78K 80: R69 Fair Value (Fair Value Measurement Levels For All HTML 117K Assets, Recorded At Fair And Market Value)(Details) 81: R70 Fair Value (Activity Under Level 3, Fair Value HTML 73K Measurements Using Significant Unobservable Inputs By Asset Type) (Details) 82: R71 Fair Value (Fair Value Measurements Using HTML 58K Significant Unobservable Inputs for Equity Index Put Option Contracts) (Details) 83: R72 Senior Notes (Narrative) (Details) HTML 61K 84: R73 Senior Notes (Schedule Of Outstanding Senior HTML 64K Notes) (Details) 85: R74 Senior Notes (Schedule Of Interest Expense HTML 44K Incurred In Connection With Senior Notes) (Details) 86: R75 Long Term Subordinated Notes (Narrative) (Details) HTML 78K 87: R76 Long Term Subordinated Notes (Schedule Of HTML 62K Outstanding Fixed To Floating Rate Long Term Subordinated Notes) (Details) 88: R77 Long Term Subordinated Notes (Schedule Of Interest HTML 45K Expense Incurred In Connection With Long Term Subordinated Notes) (Details) 89: R78 Collateralized Reinsurance And Trust Agreements HTML 100K (Narrative) (Details) 90: R79 Operating Lease Agreements (Narrative) (Details) HTML 44K 91: R80 Operating Lease Agreements (Future Minimum Rental HTML 61K Commitments) (Details) 92: R81 Income Taxes (Narrative) (Details) HTML 75K 93: R82 Income Taxes (Components Of The Provision) HTML 60K (Details) 94: R83 Income Taxes (Reconciliation Of The Difference HTML 73K Between The Provision For Income Taxes And The Expected Tax Provision At The Weighted Average Tax Rate) (Details) 95: R84 Income Taxes (Net Deferred Income Tax Assets) HTML 95K (Details) 96: R85 Reinsurance (Narrative) (Details) HTML 52K 97: R86 Reinsurance (Premiums Written And Earned And HTML 78K Incurred Losses And LAE)(Details) 98: R87 Reinsurance (Affiliated Quota Share Reinsurance HTML 93K Agreements For All New And Renewal Business For The Indicated Coverage Period) (Details) 99: R88 Reinsurance (Schedule Of Loss Portfolio Transfer HTML 66K Reinsurance Agreements, Net Insurance Exposures And Reserves Were Transferred To An Affiliate) (Details) 100: R89 Reinsurance (Premiums And Losses Ceded By The HTML 72K Company To Affiliate) (Details) 101: R90 Comprehensive Income (Loss) (Components Of HTML 77K Comprehensive Income (Loss) In The Consolidated Statements Of Operations) (Details) 102: R91 Comprehensive Income (Loss) (Reclassification From HTML 64K Accumulated Other Comprehensive Income) (Details) 103: R92 Comprehensive Income (Loss) (Components Of HTML 66K Accumulated Other Comprehensive Income (Loss), Net Of Tax, In The Consolidated Balance Sheets) (Details) 104: R93 Employee Benefit Plans (Narrative) (Details) HTML 120K 105: R94 Employee Benefit Plans (Summary Of Contributions HTML 46K To Defined Benefit Pension Plans) (Details) 106: R95 Employee Benefit Plans (Summary Of Pension HTML 46K Expense) (Details) 107: R96 Employee Benefit Plans (Summary Of Status Of Plan) HTML 87K (Details) 108: R97 Employee Benefit Plans (Amounts Recognized In The HTML 60K Consolidated Balance Sheets) (Details) 109: R98 Employee Benefit Plans (Amounts Not Yet Reflected HTML 58K In Net Periodic Benefit Cost And Included In Accumulated Other Comprehensive Income (Loss)) (Details) 110: R99 Employee Benefit Plans (Other Changes In Other HTML 61K Comprehensive Income (Loss)) (Details) 111: R100 Employee Benefit Plans (Summary Of Net Periodic HTML 77K Benefit Cost For U.S. Employees) (Details) 112: R101 Employee Benefit Plans (Summary Of Accumulated HTML 50K Benefit Obligation) (Details) 113: R102 Employee Benefit Plans (Projected Benefit HTML 51K Obligations In Excess Of Plan Assets) (Details) 114: R103 Employee Benefit Plans (Accumulated Benefit HTML 52K Obligations In Excess Of Plan Assets) (Details) 115: R104 Employee Benefit Plans (Expected Benefit Payments) HTML 61K (Details) 116: R105 Employee Benefit Plans (Fair Value Measurement HTML 88K Levels For Qualified Plan Assets) (Details) 117: R106 Employee Benefit Plans (Incurred Expenses Related HTML 44K To Defined Contribution Plans For U.S. Employees) (Details) 118: R107 Employee Benefit Plans (Incurred Expenses Related HTML 44K To Defined Contribution Plans For Non-U.S. Employees) (Details) 119: R108 Employee Benefit Plans (Changes In The Assumed HTML 52K Healthcare Cost Trend) (Details) 120: R109 Employee Benefit Plans (Post-Retirement Benefit HTML 46K Expenses) (Details) 121: R110 Dividend Restrictions And Statutory Financial HTML 59K Information (Narrative) (Details) 122: R111 Dividend Restrictions And Statutory Financial HTML 51K Information (Regulatory Targeted Capital And Actual Statutory Capital) (Details) 123: R112 Commitments And Contingencies (Estimated Cost To HTML 49K Replace All Such Annuities For Which The Company Was Contingently Liable) (Details) 124: R113 Related-Party Transactions (Narrative) (Details) HTML 71K 125: R114 Related-Party Transactions (Amendments To The HTML 57K Share Repurchase Program For The Common Shares Approved For Repurchase) (Details) 126: R115 Related-Party Transactions (Dividends Received On HTML 49K Preferred Shares) (Details) 127: R116 Related-Party Transactions (Expenses Incurred By HTML 44K Holdings From Services Provided By Affiliated Company) (Details) 128: R117 Segment Reporting (Narrative) (Details) HTML 52K 129: R118 Segment Reporting (Schedule Of Underwriting HTML 88K Results For Operating Segments) (Details) 130: R119 Segment Reporting (Schedule Of Underwriting HTML 66K Results For Operating Segments To Income (Loss) Before Taxes) (Details) 131: R120 Segment Reporting (Schedule Of Gross Written HTML 47K Premium Derived From Largest Non-U.S. Market) (Details) 132: R121 Dispositions (Narrative) (Details) HTML 53K 133: R122 Unaudited Quarterly Financial Data (Summary Of HTML 67K Quarterly Financial Data) (Details) 134: R123 Unaudited Quarterly Financial Data (Schedule of HTML 119K Prior Period Financial Statments By Quarter) (Details) 135: R124 Schedule I - Summary Of Investments - Other Than HTML 96K Investments In Related Parties (Details) 136: R125 Schedule II - Condensed Financial Information Of HTML 66K The Registrant (Narrative) (Details) 137: R126 Schedule II - Condensed Financial Information Of HTML 155K The Registrant (Condensed Balance Sheets) (Details) 138: R127 Schedule II - Condensed Financial Information Of HTML 133K The Registrant (Condensed Statements Of Operations) (Details) 139: R128 Schedule II - Condensed Financial Information Of HTML 148K The Registrant (Condensed Statements Of Cash Flows) (Details) 140: R129 Schedule III - Supplementary Insurance Information HTML 75K (Details) 141: R130 Schedule IV - Reinsurance (Details) HTML 66K 143: XML IDEA XML File -- Filing Summary XML 282K 142: EXCEL IDEA Workbook of Financial Reports XLSX 198K 6: EX-101.INS XBRL Instance -- cik0000914748-20171231 XML 9.42M 8: EX-101.CAL XBRL Calculations -- cik0000914748-20171231_cal XML 316K 9: EX-101.DEF XBRL Definitions -- cik0000914748-20171231_def XML 1.34M 10: EX-101.LAB XBRL Labels -- cik0000914748-20171231_lab XML 1.97M 11: EX-101.PRE XBRL Presentations -- cik0000914748-20171231_pre XML 2.04M 7: EX-101.SCH XBRL Schema -- cik0000914748-20171231 XSD 370K 144: ZIP XBRL Zipped Folder -- 0000914748-18-000005-xbrl Zip 428K
Delaware
(State or other jurisdiction
of incorporation or organization)
|
22-3263609
(I.R.S Employer
Identification No.)
|
Title of Each Class
|
Name of Each Exchange on Which Registered
|
|
4.868% Senior Notes Due 2044
|
NYSE
|
|
6.60% Long Term Notes Due 2067
|
NYSE
|
Yes
|
X
|
No
|
Yes
|
No
|
X
|
Yes
|
X
|
No
|
Yes
|
X
|
No
|
Yes
|
X
|
No
|
Large accelerated filer
|
Accelerated filer
|
|||
Non-accelerated filer
|
X
|
Smaller reporting company
|
||
(Do not check if smaller reporting company)
|
Emerging growth company
|
Yes
|
No
|
X
|
Yes
|
No
|
X
|
Page
|
||
PART I
|
||
Item 1.
|
Business
|
1
|
Item 1A.
|
Risk Factors
|
7
|
Item 1B.
|
Unresolved Staff Comments
|
13
|
Item 2.
|
Properties
|
13
|
Item 3.
|
Legal Proceedings
|
13
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Item 4.
|
Mine Safety Disclosures
|
14
|
PART II
|
||
Item 5.
|
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
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14
|
Item 6.
|
Selected Financial Data
|
14
|
Item 7.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
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15
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Item 7A.
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Quantitative and Qualitative Disclosures About Market Risk
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29
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Item 8.
|
Financial Statements and Supplementary Data
|
31
|
Item 9.
|
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
|
31
|
Item 9A.
|
Controls and Procedures
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31
|
Item 9B.
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Other Information
|
32
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PART III
|
||
Item 10.
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Directors, Executive Officers and Corporate Governance
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32
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Item 11.
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Executive Compensation
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32
|
Item 12.
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
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32
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Item 13.
|
Certain Relationships and Related Transactions, and Director Independence
|
33
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Item 14.
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Principal Accountant Fees and Services
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33
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PART IV
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||
Item 15.
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Exhibits and Financial Statement Schedules
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34
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·
|
Everest Re, a Delaware insurance company and a direct subsidiary of Holdings, is a licensed property and casualty insurer and/or reinsurer in all states, the District of Columbia, Puerto Rico and Guam and is authorized to conduct reinsurance business in Canada, Singapore and Brazil. Everest Re underwrites property and casualty reinsurance for insurance and reinsurance companies in the U.S. and international markets. Everest Re has engaged in reinsurance transactions with Bermuda Re, Everest International Reinsurance, Ltd. ("Everest International"), Mt. Logan Re, Ltd. ("Mt. Logan Re") and Everest Insurance Company of Canada ("Everest Canada"), which are affiliated companies, primarily driven by enterprise risk and capital management considerations under which business is transacted at market rates and terms. At December 31, 2017 Everest Re had statutory surplus of $3.4 billion.
|
·
|
Everest National Insurance Company ("Everest National"), a Delaware insurance company and a direct subsidiary of Everest Re, is licensed in 50 states and the District of Columbia and is authorized to write property and casualty insurance on an admitted basis in the jurisdictions in which it is licensed. The majority of Everest National's business is reinsured by its parent, Everest Re.
|
·
|
Everest Indemnity Insurance Company ("Everest Indemnity"), a Delaware insurance company and a direct subsidiary of Everest Re, writes excess and surplus lines insurance business in the U.S. on a non-admitted basis. Excess and surplus lines insurance is specialty property and liability coverage that an insurer not licensed to write insurance in a particular jurisdiction is permitted to provide to insureds when the specific specialty coverage is unavailable from admitted insurers. Everest Indemnity is licensed in Delaware and is eligible to write business on a non-admitted basis in all other states, the District of Columbia and Puerto Rico. The majority of Everest Indemnity's business is reinsured by its parent, Everest Re.
|
·
|
Everest Security Insurance Company ("Everest Security"), a Georgia insurance company and a direct subsidiary of Everest Re, writes property and casualty insurance on an admitted basis in Georgia and Alabama. The majority of Everest Security's business is reinsured by its parent, Everest Re.
|
·
|
Everest Denali Insurance Company ("Everest Denali"), a Delaware insurance company and a direct subsidiary of Everest Re, is licensed to write property and casualty insurance in 46 states and the District of Columbia.
|
·
|
Everest Premier Insurance Company ("Everest Premier"), a Delaware insurance company and a direct subsidiary of Everest Re, is licensed to write property and casualty insurance in 46 states and the District of Columbia.
|
·
|
Everest International Assurance, Ltd. ("Everest Assurance"), a Bermuda company and a direct subsidiary of Holdings is registered in Bermuda as a Class 3A general business insurer and as a Class C long-term insurer. Everest Assurance has made a one-time election under section 953(d) of the U.S. Internal Revenue Code to be a U.S. income tax paying "Controlled Foreign Corporation." By making this election, Everest Assurance will be authorized to write life reinsurance and casualty reinsurance in both Bermuda and the U.S.
|
·
|
Mt. McKinley Insurance Company ("Mt. McKinley"), a Delaware insurance company and a direct subsidiary of Holdings, was acquired by Holdings in September 2000 from The Prudential Insurance Company of America ("The Prudential"). In 1985, Mt. McKinley ceased writing new and renewal insurance and commenced a run-off operation to service claims arising from its previously written business. Effective September 19, 2000, Mt. McKinley and Bermuda Re entered into a loss portfolio transfer reinsurance agreement, whereby Mt. McKinley transferred, for arm's length consideration, all of its net insurance exposures and reserves to Bermuda Re. Effective July 13, 2015, the Company sold all of the outstanding shares of capital stock in Mt. McKinley to Clearwater Insurance
Company. The operating results of Mt. McKinley through July 13, 2015 are included within the Company's financial statements.
|
·
|
Heartland Crop Insurance Company ("Heartland"), a Kansas based managing general agent and a direct subsidiary of Holdings, was acquired on January 2, 2011. Heartland specializes in crop insurance, which is written mainly through Everest National. Effective August 24, 2016, the Company sold Heartland to CGB Diversified Services, Inc. ("CGB"). The operating results of Heartland for the period owned are included within the Company's financial statements.
|
Operating Subsidiary:
|
A.M. Best
|
Standard & Poor's
|
Moody's
|
|||
Everest Re
|
A+ (Superior)
|
A+ (Strong)
|
A1 (upper-medium)
|
|||
Everest National
|
A+ (Superior)
|
A+ (Strong)
|
Not Rated
|
|||
Everest Indemnity
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A+ (Superior)
|
A+ (Strong)
|
Not Rated
|
|||
Everest Security
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A+ (Superior)
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Not Rated
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Not Rated
|
|||
Everest International Assurance, Ltd.
|
A+ (Superior)
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A (Strong)
|
Not Rated
|
|||
Everest Denali
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A+ (Superior)
|
Not Rated
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Not Rated
|
|||
Everest Premier
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A+ (Superior)
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Not Rated
|
Not Rated
|
A.M. Best
|
|
Standard & Poor's
|
|
Moody's
|
|||||||
Senior Notes
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a-
|
(Strong)
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A-
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(Strong)
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Baa1
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(Medium Grade)
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|||||
Long Term Notes
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bbb
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(Adequate)
|
BBB
|
(Adequate)
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Baa2
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(Medium Grade)
|
Calendar year:
|
Pre-tax catastrophe losses | |||
(Dollars in millions)
|
||||
2017
|
$
|
941.4
|
||
2016
|
109.2
|
|||
2015
|
31.9
|
|||
2014
|
18.2
|
|||
2013
|
76.6
|
Calendar year:
|
Effect on pre-tax net income | ||||
(Dollars in millions)
|
|||||
2017
|
$
|
117.7
|
increase
|
||
2016
|
91.7
|
increase
|
|||
2015
|
6.5
|
increase
|
|||
2014
|
39.2
|
decrease
|
|||
2013
|
44.6
|
decrease
|
Percentage of ceded written premiums to gross written premiums
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
Unaffiliated
|
14.6%
|
13.6%
|
8.2%
|
9.3%
|
5.0%
|
|||||
Affiliated
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38.4%
|
45.9%
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49.9%
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48.2%
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47.3%
|
At
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||||||||
(Dollars in millions)
|
% of Total
|
|||||||
Mortgage-backed securities
|
||||||||
Commercial
|
$
|
51.7
|
0.6
|
%
|
||||
Agency residential
|
113.3
|
1.3
|
%
|
|||||
Non-agency residential
|
0.1
|
0.0
|
%
|
|||||
Other asset-backed
|
138.0
|
1.5
|
%
|
|||||
Total asset-backed
|
303.1
|
3.4
|
%
|
|||||
Other fixed income
|
4,668.8
|
52.4
|
%
|
|||||
Total fixed income, at market value
|
4,971.9
|
55.8
|
%
|
|||||
Equity securities, at fair value
|
822.4
|
9.2
|
%
|
|||||
Other invested assets, at market value
|
838.7
|
9.4
|
%
|
|||||
Other invested assets, at fair value
|
1,807.5
|
20.3
|
%
|
|||||
Cash and short-term investments
|
471.0
|
5.3
|
%
|
|||||
Total investments and cash
|
$
|
8,911.5
|
100.0
|
%
|
ITEM 5. |
MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER
PURCHASES OF EQUITY SECURITIES
|
Years Ended December 31,
|
Percentage Increase/(Decrease)
|
|||||||||||||||||||
(Dollars in millions)
|
2017
|
2016
|
2015
|
2017/2016
|
2016/2015
|
|||||||||||||||
Gross written premiums
|
$
|
5,788.5
|
$
|
5,063.7
|
$
|
4,995.6
|
14.3
|
%
|
1.4
|
%
|
||||||||||
Net written premiums
|
2,723.8
|
2,048.1
|
2,093.3
|
33.0
|
%
|
-2.2
|
%
|
|||||||||||||
REVENUES:
|
||||||||||||||||||||
Premiums earned
|
$
|
1,949.6
|
$
|
2,094.0
|
$
|
2,143.8
|
-6.9
|
%
|
-2.3
|
%
|
||||||||||
Net investment income
|
286.3
|
264.8
|
273.3
|
8.1
|
%
|
-3.1
|
%
|
|||||||||||||
Net realized capital gains (losses)
|
161.6
|
(28.9
|
)
|
50.3
|
NM
|
-157.5
|
%
|
|||||||||||||
Other income (expense)
|
23.8
|
(10.5
|
)
|
29.3
|
NM
|
-136.0
|
%
|
|||||||||||||
Total revenues
|
2,421.2
|
2,319.4
|
2,496.6
|
4.4
|
%
|
-7.1
|
%
|
|||||||||||||
CLAIMS AND EXPENSES:
|
||||||||||||||||||||
Incurred losses and loss adjustment expenses
|
2,039.8
|
1,350.3
|
1,319.6
|
51.1
|
%
|
2.3
|
%
|
|||||||||||||
Commission, brokerage, taxes and fees
|
210.9
|
281.4
|
312.3
|
-25.1
|
%
|
-9.9
|
%
|
|||||||||||||
Other underwriting expenses
|
254.9
|
245.0
|
214.8
|
4.0
|
%
|
14.0
|
%
|
|||||||||||||
Corporate expense
|
7.4
|
8.3
|
7.2
|
-10.7
|
%
|
15.3
|
%
|
|||||||||||||
Interest, fee and bond issue cost amortization expense
|
31.2
|
35.4
|
35.4
|
-12.0
|
%
|
0.0
|
%
|
|||||||||||||
Total claims and expenses
|
2,544.1
|
1,920.4
|
1,889.3
|
32.5
|
%
|
1.6
|
%
|
|||||||||||||
INCOME (LOSS) BEFORE TAXES
|
(123.0
|
)
|
399.0
|
607.3
|
-130.8
|
%
|
-34.3
|
%
|
||||||||||||
Income tax expense (benefit)
|
(201.2
|
)
|
97.3
|
194.9
|
NM
|
-50.1
|
%
|
|||||||||||||
NET INCOME (LOSS)
|
$
|
78.2
|
$
|
301.6
|
$
|
412.4
|
-74.1
|
%
|
-26.9
|
%
|
||||||||||
RATIOS:
|
Point Change
|
|||||||||||||||||||
Loss ratio
|
104.6
|
%
|
64.5
|
%
|
61.6
|
%
|
40.1
|
2.9
|
||||||||||||
Commission and brokerage ratio
|
10.8
|
%
|
13.4
|
%
|
14.6
|
%
|
(2.6
|
)
|
(1.2
|
)
|
||||||||||
Other underwriting expense ratio
|
13.1
|
%
|
11.7
|
%
|
9.9
|
%
|
1.4
|
1.8
|
||||||||||||
Combined ratio
|
128.5
|
%
|
89.6
|
%
|
86.1
|
%
|
38.9
|
3.5
|
||||||||||||
At December 31,
|
Percentage Increase/ (Decrease)
|
|||||||||||||||||||
(Dollars in millions)
|
2017
|
2016
|
2015
|
2017/2016
|
2016/2015
|
|||||||||||||||
Balance sheet data:
|
||||||||||||||||||||
Total investments and cash
|
$
|
8,911.5
|
$
|
9,842.7
|
$
|
9,516.3
|
-9.5
|
%
|
3.4
|
%
|
||||||||||
Total assets
|
17,888.5
|
17,083.4
|
16,689.0
|
4.2
|
%
|
2.4
|
%
|
|||||||||||||
Loss and loss adjustment expense reserves
|
9,343.0
|
8,331.3
|
7,940.7
|
12.1
|
%
|
4.9
|
%
|
|||||||||||||
Total debt
|
633.4
|
633.2
|
633.0
|
0.0
|
%
|
0.0
|
%
|
|||||||||||||
Total liabilities
|
12,475.8
|
11,784.9
|
11,730.6
|
5.1
|
%
|
0.5
|
%
|
|||||||||||||
Stockholder's equity
|
5,412.7
|
5,298.6
|
4,958.3
|
2.2
|
%
|
6.9
|
%
|
|||||||||||||
(Some amounts may not reconcile due to rounding)
|
||||||||||||||||||||
(NM, not meaningful)
|
Years Ended December 31,
|
|||||||||||||||||||||||||||
Current
|
Ratio %/
|
Prior
|
Ratio %/
|
Total
|
Ratio %/
|
||||||||||||||||||||||
(Dollars in millions)
|
Year
|
Pt Change
|
Years
|
Pt Change
|
Incurred
|
Pt Change
|
|||||||||||||||||||||
2017
|
|||||||||||||||||||||||||||
Attritional (a)
|
$
|
1,200.6
|
61.5
|
%
|
$
|
(102.3
|
)
|
-5.2
|
%
|
$
|
1,098.4
|
56.3
|
%
|
||||||||||||||
Catastrophes
|
956.9
|
49.1
|
%
|
|
(15.5
|
)
|
-0.8
|
%
|
|
941.4
|
48.3
|
%
|
|
||||||||||||||
Total
|
$
|
2,157.5
|
110.6
|
%
|
|
$
|
(117.7
|
)
|
-6.0
|
%
|
|
$
|
2,039.8
|
104.6
|
%
|
|
|||||||||||
2016
|
|||||||||||||||||||||||||||
Attritional (a)
|
$
|
1,287.2
|
61.5
|
%
|
$
|
(46.1
|
)
|
-2.2
|
%
|
$
|
1,241.1
|
59.3
|
%
|
||||||||||||||
Catastrophes
|
154.8
|
7.4
|
%
|
|
(45.6
|
)
|
-2.2
|
%
|
|
109.2
|
5.2
|
%
|
|
||||||||||||||
Total
|
$
|
1,442.0
|
68.9
|
%
|
|
$
|
(91.7
|
)
|
-4.4
|
%
|
|
$
|
1,350.3
|
64.5
|
%
|
|
|||||||||||
2015
|
|||||||||||||||||||||||||||
Attritional (a)
|
$
|
1,282.9
|
59.8
|
%
|
$
|
4.7
|
0.3
|
%
|
$
|
1,287.6
|
60.1
|
%
|
|||||||||||||||
Catastrophes
|
43.1
|
2.0
|
%
|
|
(11.2
|
)
|
-0.5
|
%
|
|
31.9
|
1.5
|
%
|
|||||||||||||||
Total
|
$
|
1,326.0
|
61.8
|
%
|
|
$
|
(6.5
|
)
|
-0.2
|
%
|
|
$
|
1,319.6
|
61.6
|
%
|
|
|||||||||||
Variance 2017/2016
|
|||||||||||||||||||||||||||
Attritional (a)
|
$
|
(86.6
|
)
|
-
|
pts
|
$
|
(56.2
|
)
|
(3.0
|
)
|
pts
|
$
|
(142.7
|
)
|
(3.0
|
)
|
pts
|
||||||||||
Catastrophes
|
802.1
|
41.7
|
pts
|
30.1
|
1.4
|
pts
|
832.2
|
43.1
|
pts
|
||||||||||||||||||
Total
|
$
|
715.5
|
41.7
|
pts
|
$
|
(26.1
|
)
|
(1.6
|
)
|
pts
|
$
|
689.5
|
40.1
|
pts
|
|||||||||||||
Variance 2016/2015
|
|||||||||||||||||||||||||||
Attritional (a)
|
$
|
4.3
|
1.7
|
pts
|
$
|
(50.8
|
)
|
(2.5
|
)
|
pts
|
$
|
(46.5
|
)
|
(0.8
|
)
|
pts
|
|||||||||||
Catastrophes
|
111.7
|
5.4
|
pts
|
(34.4
|
)
|
(1.7
|
)
|
pts
|
77.3
|
3.7
|
pts
|
||||||||||||||||
Total
|
$
|
116.0
|
7.1
|
pts
|
$
|
(85.2
|
)
|
(4.2
|
)
|
pts
|
$
|
30.7
|
2.9
|
pts
|
|||||||||||||
(a) Attritional losses exclude catastrophe losses.
|
|||||||||||||||||||||||||||
(Some amounts may not reconcile due to rounding.)
|
Years Ended December 31,
|
||||||||||||
(Dollars in millions)
|
2017
|
2016
|
2015
|
|||||||||
Fixed maturities
|
$
|
193.7
|
$
|
182.1
|
$
|
188.3
|
||||||
Equity securities
|
25.9
|
32.3
|
34.4
|
|||||||||
Short-term investments and cash
|
2.9
|
1.2
|
1.0
|
|||||||||
Other invested assets
|
||||||||||||
Limited partnerships
|
36.6
|
25.2
|
19.6
|
|||||||||
Dividends from Parent's shares
|
-
|
-
|
38.9
|
|||||||||
Dividends from preferred shares of affiliate
|
31.0
|
31.0
|
-
|
|||||||||
Other
|
6.7
|
1.0
|
1.8
|
|||||||||
Gross investment income before adjustments
|
296.8
|
272.9
|
284.0
|
|||||||||
Funds held interest income (expense)
|
5.0
|
6.1
|
5.6
|
|||||||||
Interest income from Parent
|
4.3
|
4.3
|
4.3
|
|||||||||
Gross investment income
|
306.0
|
283.3
|
293.9
|
|||||||||
Investment expenses
|
(19.8
|
)
|
(18.5
|
)
|
(20.6
|
)
|
||||||
Net investment income
|
$
|
286.3
|
$
|
264.8
|
$
|
273.3
|
||||||
(Some amounts may not reconcile due to rounding.)
|
2017
|
2016
|
2015
|
|
Imbedded pre-tax yield of cash and invested assets at December 31
|
3.4%
|
2.9%
|
2.9%
|
Imbedded after-tax yield of cash and invested assets at December 31
|
2.7%
|
2.0%
|
2.1%
|
Annualized pre-tax yield on average cash and invested assets
|
3.2%
|
2.8%
|
3.1%
|
Annualized after-tax yield on average cash and invested assets
|
2.2%
|
2.0%
|
2.2%
|
Years Ended December 31,
|
2017/2016 | 2016/2015 | ||||||||||||||||||
(Dollars in millions)
|
2017
|
2016
|
2015
|
Variance
|
Variance
|
|||||||||||||||
Gains (losses) from sales:
|
||||||||||||||||||||
Fixed maturity securities, market value
|
||||||||||||||||||||
Gains
|
$
|
31.3
|
$
|
18.6
|
$
|
10.9
|
$
|
12.7
|
$
|
7.7
|
||||||||||
Losses
|
(28.9
|
)
|
(25.6
|
)
|
(47.2
|
)
|
(3.3
|
)
|
21.6
|
|||||||||||
Total
|
2.5
|
(7.0
|
)
|
(36.3
|
)
|
9.5
|
29.3
|
|||||||||||||
Fixed maturity securities, fair value
|
||||||||||||||||||||
Gains
|
-
|
0.3
|
-
|
(0.3
|
)
|
0.3
|
||||||||||||||
Losses
|
-
|
(1.9
|
)
|
-
|
1.9
|
(1.9
|
)
|
|||||||||||||
Total
|
-
|
(1.6
|
)
|
-
|
1.6
|
(1.6
|
)
|
|||||||||||||
Equity securities, fair value
|
||||||||||||||||||||
Gains
|
23.2
|
16.2
|
26.1
|
7.0
|
(9.9
|
)
|
||||||||||||||
Losses
|
(16.7
|
)
|
(28.8
|
)
|
(34.1
|
)
|
12.1
|
5.3
|
||||||||||||
Total
|
6.6
|
(12.6
|
)
|
(8.0
|
)
|
19.2
|
(4.6
|
)
|
||||||||||||
Other invested assets, fair value
|
||||||||||||||||||||
Gains on exchange
|
0.1
|
-
|
88.4
|
0.1
|
(88.4
|
)
|
||||||||||||||
Losses
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Total
|
0.1
|
-
|
88.4
|
0.1
|
(88.4
|
)
|
||||||||||||||
Total net realized gains (losses) from sales
|
||||||||||||||||||||
Gains
|
54.6
|
35.1
|
125.4
|
19.5
|
(90.3
|
)
|
||||||||||||||
Losses
|
(45.6
|
)
|
(56.3
|
)
|
(81.3
|
)
|
10.7
|
25.0
|
||||||||||||
Total
|
9.1
|
(21.1
|
)
|
44.1
|
30.2
|
(65.3
|
)
|
|||||||||||||
Gain (loss) on sale of subsidiary:
|
-
|
(28.0
|
)
|
94.7
|
28.0
|
(122.7
|
)
|
|||||||||||||
Other than temporary impairments:
|
(6.1
|
)
|
(25.7
|
)
|
(78.8
|
)
|
19.6
|
53.1
|
||||||||||||
Gains (losses) from fair value adjustments:
|
||||||||||||||||||||
Fixed maturities, fair value
|
-
|
1.4
|
-
|
(1.4
|
)
|
1.4
|
||||||||||||||
Equity securities, fair value
|
117.7
|
51.1
|
(39.1
|
)
|
66.6
|
90.2
|
||||||||||||||
Other invested assets, fair value
|
40.8
|
(6.6
|
)
|
29.5
|
47.4
|
(36.1
|
)
|
|||||||||||||
Total
|
158.5
|
45.9
|
(9.6
|
)
|
112.6
|
55.5
|
||||||||||||||
Total net realized gains (losses)
|
$
|
161.6
|
$
|
(28.9
|
)
|
$
|
50.3
|
$
|
190.5
|
$
|
(79.2
|
)
|
||||||||
(Some amounts may not reconcile due to rounding.)
|
Years Ended December 31, | 2017/2016 | 2016/2015 | ||||||||||||||||||||||||||
(Dollars in millions)
|
2017
|
2016
|
2015
|
Variance
|
% Change
|
Variance
|
% Change
|
|||||||||||||||||||||
Gross written premiums
|
$
|
2,593.1
|
$
|
2,125.8
|
$
|
2,147.9
|
$
|
467.3
|
22.0
|
%
|
$
|
(22.1
|
)
|
-1.0
|
%
|
|||||||||||||
Net written premiums
|
1,135.6
|
930.2
|
899.9
|
205.4
|
22.1
|
%
|
30.3
|
3.4
|
%
|
|||||||||||||||||||
Premiums earned
|
$
|
858.2
|
$
|
990.1
|
$
|
951.5
|
$
|
(131.9
|
)
|
-13.3
|
%
|
$
|
38.6
|
4.1
|
%
|
|||||||||||||
Incurred losses and LAE
|
912.1
|
554.1
|
413.3
|
358.0
|
64.6
|
%
|
140.8
|
34.1
|
%
|
|||||||||||||||||||
Commission and brokerage
|
160.3
|
189.5
|
199.0
|
(29.2
|
)
|
-15.4
|
%
|
(9.5
|
)
|
-4.8
|
%
|
|||||||||||||||||
Other underwriting expenses
|
55.9
|
54.1
|
50.1
|
1.8
|
3.3
|
%
|
4.0
|
8.0
|
%
|
|||||||||||||||||||
Underwriting gain (loss)
|
$
|
(270.2
|
)
|
$
|
192.4
|
$
|
289.1
|
$
|
(462.5
|
)
|
-240.5
|
%
|
$
|
(96.7
|
)
|
-33.4
|
%
|
|||||||||||
Point Chg
|
Point Chg
|
|||||||||||||||||||||||||||
Loss ratio
|
106.3
|
%
|
56.0
|
%
|
43.4
|
%
|
50.3
|
12.6
|
||||||||||||||||||||
Commission and brokerage ratio
|
18.7
|
%
|
19.1
|
%
|
20.9
|
%
|
(0.4
|
)
|
(1.8
|
)
|
||||||||||||||||||
Other underwriting expense ratio
|
6.5
|
%
|
5.5
|
%
|
5.3
|
%
|
1.0
|
0.2
|
||||||||||||||||||||
Combined ratio
|
131.5
|
%
|
80.6
|
%
|
69.6
|
%
|
50.9
|
11.0
|
||||||||||||||||||||
(Some amounts may not reconcile due to rounding)
|
Years Ended December 31,
|
|||||||||||||||||||||||||||
Current
|
Ratio %/
|
Prior
|
Ratio %/
|
Total
|
Ratio %/
|
||||||||||||||||||||||
(Dollars in millions)
|
Year
|
Pt Change
|
Years
|
Pt Change
|
Incurred
|
Pt Change
|
|||||||||||||||||||||
2017
|
|||||||||||||||||||||||||||
Attritional
|
$
|
522.3
|
61.0
|
%
|
$
|
(80.4
|
)
|
-9.4
|
%
|
$
|
441.9
|
51.6
|
%
|
||||||||||||||
Catastrophes
|
485.2
|
56.5
|
%
|
|
(15.1
|
)
|
-1.8
|
%
|
|
470.2
|
54.7
|
%
|
|
||||||||||||||
Total segment
|
$
|
1,007.5
|
117.5
|
%
|
|
$
|
(95.5
|
)
|
-11.2
|
%
|
|
$
|
912.1
|
106.3
|
%
|
|
|||||||||||
2016
|
|||||||||||||||||||||||||||
Attritional
|
$
|
555.5
|
56.1
|
%
|
$
|
(49.0
|
)
|
-4.9
|
%
|
$
|
506.5
|
51.2
|
%
|
||||||||||||||
Catastrophes
|
67.0
|
6.8
|
%
|
|
(19.5
|
)
|
-2.0
|
%
|
|
47.6
|
4.8
|
%
|
|
||||||||||||||
Total segment
|
$
|
622.5
|
62.9
|
%
|
|
$
|
(68.5
|
)
|
-6.9
|
%
|
|
$
|
554.1
|
56.0
|
%
|
|
|||||||||||
2015
|
|||||||||||||||||||||||||||
Attritional
|
$
|
473.5
|
49.8
|
%
|
$
|
(63.7
|
)
|
-6.8
|
%
|
$
|
409.8
|
43.0
|
%
|
||||||||||||||
Catastrophes
|
8.4
|
0.9
|
%
|
|
(4.9
|
)
|
-0.5
|
%
|
|
3.5
|
0.4
|
%
|
|
||||||||||||||
Total segment
|
$
|
481.9
|
50.7
|
%
|
|
$
|
(68.6
|
)
|
-7.2
|
%
|
|
$
|
413.3
|
43.4
|
%
|
|
|||||||||||
Variance 2017/2016
|
|||||||||||||||||||||||||||
Attritional
|
$
|
(33.2
|
)
|
4.9
|
pts
|
$
|
(31.4
|
)
|
(4.5
|
)
|
pts
|
$
|
(64.6
|
)
|
0.4
|
pts
|
|||||||||||
Catastrophes
|
418.2
|
49.7
|
pts
|
4.4
|
0.2
|
pts
|
422.6
|
49.9
|
pts
|
||||||||||||||||||
Total segment
|
$
|
385.0
|
54.6
|
pts
|
$
|
(27.0
|
)
|
(4.3
|
)
|
pts
|
$
|
358.0
|
50.3
|
pts
|
|||||||||||||
Variance 2016/2015
|
|||||||||||||||||||||||||||
Attritional
|
$
|
82.0
|
6.3
|
pts
|
$
|
14.7
|
1.9
|
pts
|
$
|
96.7
|
8.2
|
pts
|
|||||||||||||||
Catastrophes
|
58.6
|
5.9
|
pts
|
(14.6
|
)
|
(1.5
|
)
|
pts
|
44.1
|
4.4
|
pts
|
||||||||||||||||
Total segment
|
$
|
140.6
|
12.2
|
pts
|
$
|
0.1
|
0.3
|
pts
|
$
|
140.8
|
12.6
|
pts
|
|||||||||||||||
(Some amounts may not reconcile due to rounding.)
|
Years Ended December 31, | 2017/2016 | 2016/2015 | ||||||||||||||||||||||||||
(Dollars in millions)
|
2017
|
2016
|
2015
|
Variance
|
% Change
|
Variance
|
% Change
|
|||||||||||||||||||||
Gross written premiums
|
$
|
1,339.5
|
$
|
1,269.1
|
$
|
1,374.0
|
$
|
70.4
|
5.5
|
%
|
$
|
(104.9
|
)
|
-7.6
|
%
|
|||||||||||||
Net written premiums
|
615.4
|
497.6
|
562.7
|
117.8
|
23.7
|
%
|
(65.1
|
)
|
-11.6
|
%
|
||||||||||||||||||
Premiums earned
|
$
|
502.3
|
$
|
510.9
|
$
|
581.2
|
$
|
(8.6
|
)
|
-1.7
|
%
|
$
|
(70.3
|
)
|
-12.1
|
%
|
||||||||||||
Incurred losses and LAE
|
622.8
|
207.6
|
394.8
|
415.2
|
200.0
|
%
|
(187.2
|
)
|
-47.4
|
%
|
||||||||||||||||||
Commission and brokerage
|
101.9
|
111.5
|
121.2
|
(9.6
|
)
|
-8.6
|
%
|
(9.6
|
)
|
-8.0
|
%
|
|||||||||||||||||
Other underwriting expenses
|
36.3
|
34.3
|
34.3
|
2.0
|
5.9
|
%
|
-
|
0.0
|
%
|
|||||||||||||||||||
Underwriting gain (loss)
|
$
|
(258.7
|
)
|
$
|
157.5
|
$
|
30.9
|
$
|
(416.2
|
)
|
NM
|
$
|
126.5
|
NM
|
||||||||||||||
Point Chg
|
Point Chg
|
|||||||||||||||||||||||||||
Loss ratio
|
124.0
|
%
|
40.6
|
%
|
67.9
|
%
|
83.4
|
(27.3
|
)
|
|||||||||||||||||||
Commission and brokerage ratio
|
20.3
|
%
|
21.8
|
%
|
20.8
|
%
|
(1.5
|
)
|
1.0
|
|||||||||||||||||||
Other underwriting expense ratio
|
7.2
|
%
|
6.8
|
%
|
6.0
|
%
|
0.4
|
0.8
|
||||||||||||||||||||
Combined ratio
|
151.5
|
%
|
69.2
|
%
|
94.7
|
%
|
82.3
|
(25.5
|
)
|
|||||||||||||||||||
(Some amounts may not reconcile due to rounding)
|
||||||||||||||||||||||||||||
(NM, not meaningful)
|
Years Ended December 31,
|
|||||||||||||||||||||||||||
Current
|
Ratio %/
|
Prior
|
Ratio %/
|
Total
|
Ratio %/
|
||||||||||||||||||||||
(Dollars in millions)
|
Year
|
Pt Change
|
Years
|
Pt Change
|
Incurred
|
Pt Change
|
|||||||||||||||||||||
2017
|
|||||||||||||||||||||||||||
Attritional
|
$
|
255.0
|
50.8
|
%
|
$
|
11.6
|
2.3
|
%
|
$
|
266.6
|
53.1
|
%
|
|||||||||||||||
Catastrophes
|
357.2
|
71.1
|
%
|
|
(1.0
|
)
|
-0.2
|
%
|
|
356.2
|
70.9
|
%
|
|
||||||||||||||
Total segment
|
$
|
612.2
|
121.9
|
%
|
|
$
|
10.6
|
2.1
|
%
|
|
$
|
622.8
|
124.0
|
%
|
|
||||||||||||
2016
|
|||||||||||||||||||||||||||
Attritional
|
$
|
261.5
|
51.2
|
%
|
$
|
(93.6
|
)
|
-18.3
|
%
|
$
|
167.9
|
32.8
|
%
|
||||||||||||||
Catastrophes
|
65.5
|
12.8
|
%
|
|
(25.8
|
)
|
-5.1
|
%
|
|
39.7
|
7.8
|
%
|
|
||||||||||||||
Total segment
|
$
|
327.0
|
64.0
|
%
|
|
$
|
(119.4
|
)
|
-23.4
|
%
|
|
$
|
207.6
|
40.6
|
%
|
|
|||||||||||
2015
|
|||||||||||||||||||||||||||
Attritional
|
$
|
378.1
|
65.1
|
%
|
$
|
(11.4
|
)
|
-2.1
|
%
|
$
|
366.7
|
63.0
|
%
|
||||||||||||||
Catastrophes
|
34.7
|
6.0
|
%
|
|
(6.6
|
)
|
-1.1
|
%
|
|
28.1
|
4.9
|
%
|
|
||||||||||||||
Total segment
|
$
|
412.8
|
71.1
|
%
|
|
$
|
(18.0
|
)
|
-3.2
|
%
|
|
$
|
394.8
|
67.9
|
%
|
|
|||||||||||
Variance 2017/2016
|
|||||||||||||||||||||||||||
Attritional
|
$
|
(6.5
|
)
|
(0.4
|
)
|
pts
|
$
|
105.2
|
20.6
|
pts
|
$
|
98.7
|
20.3
|
pts
|
|||||||||||||
Catastrophes
|
291.7
|
58.3
|
pts
|
24.8
|
4.9
|
pts
|
316.5
|
63.1
|
pts
|
||||||||||||||||||
Total segment
|
$
|
285.2
|
57.9
|
pts
|
$
|
130.0
|
25.5
|
pts
|
$
|
415.2
|
83.4
|
pts
|
|||||||||||||||
Variance 2016/2015
|
|||||||||||||||||||||||||||
Attritional
|
$
|
(116.6
|
)
|
(13.9
|
)
|
pts
|
$
|
(82.2
|
)
|
(16.2
|
)
|
pts
|
$
|
(198.8
|
)
|
(30.2
|
)
|
pts
|
|||||||||
Catastrophes
|
30.8
|
6.8
|
pts
|
(19.2
|
)
|
(4.0
|
)
|
pts
|
11.6
|
2.9
|
pts
|
||||||||||||||||
Total segment
|
$
|
(85.8
|
)
|
(7.1
|
)
|
pts
|
$
|
(101.4
|
)
|
(20.2
|
)
|
pts
|
$
|
(187.2
|
)
|
(27.3
|
)
|
pts
|
|||||||||
(Some amounts may not reconcile due to rounding.)
|
Years Ended December 31,
|
2017/2016 | 2016/2015 | ||||||||||||||||||||||||||
(Dollars in millions)
|
2017
|
2016
|
2015
|
Variance
|
% Change
|
Variance
|
% Change
|
|||||||||||||||||||||
Gross written premiums
|
$
|
1,855.9
|
$
|
1,668.8
|
$
|
1,473.8
|
$
|
187.1
|
11.2
|
%
|
$
|
195.0
|
13.2
|
%
|
||||||||||||||
Net written premiums
|
972.8
|
620.3
|
630.7
|
352.5
|
56.8
|
%
|
(10.4
|
)
|
-1.6
|
%
|
||||||||||||||||||
Premiums earned
|
$
|
589.1
|
$
|
593.1
|
$
|
611.1
|
$
|
(4.0
|
)
|
-0.7
|
%
|
$
|
(18.0
|
)
|
-2.9
|
%
|
||||||||||||
Incurred losses and LAE
|
504.9
|
588.6
|
511.5
|
(83.7
|
)
|
-14.2
|
%
|
77.1
|
15.1
|
%
|
||||||||||||||||||
Commission and brokerage
|
(51.3
|
)
|
(19.6
|
)
|
(7.8
|
)
|
(31.7
|
)
|
162.0
|
%
|
(11.8
|
)
|
150.6
|
%
|
||||||||||||||
Other underwriting expenses
|
162.7
|
156.6
|
130.4
|
6.1
|
3.9
|
%
|
26.2
|
20.1
|
%
|
|||||||||||||||||||
Underwriting gain (loss)
|
$
|
(27.1
|
)
|
$
|
(132.5
|
)
|
$
|
(23.0
|
)
|
$
|
105.4
|
-79.5
|
%
|
$
|
(109.5
|
)
|
NM
|
|||||||||||
Point Chg
|
Point Chg
|
|||||||||||||||||||||||||||
Loss ratio
|
85.7
|
%
|
99.2
|
%
|
83.7
|
%
|
(13.5
|
)
|
15.5
|
|||||||||||||||||||
Commission and brokerage ratio
|
-8.7
|
%
|
-3.3
|
%
|
-1.3
|
%
|
(5.4
|
)
|
(2.0
|
)
|
||||||||||||||||||
Other underwriting expense ratio
|
27.6
|
%
|
26.5
|
%
|
21.3
|
%
|
1.1
|
5.2
|
||||||||||||||||||||
Combined ratio
|
104.6
|
%
|
122.3
|
%
|
103.8
|
%
|
(17.7
|
)
|
18.5
|
|||||||||||||||||||
(Some amounts may not reconcile due to rounding)
|
||||||||||||||||||||||||||||
(NM, not meaningful)
|
Years Ended December 31,
|
|||||||||||||||||||||||||||
Current
|
Ratio %/
|
Prior
|
Ratio %/
|
Total
|
Ratio %/
|
||||||||||||||||||||||
(Dollars in millions)
|
Year
|
Pt Change
|
Years
|
Pt Change
|
Incurred
|
Pt Change
|
|||||||||||||||||||||
2017
|
|||||||||||||||||||||||||||
Attritional
|
$
|
423.4
|
71.9
|
%
|
$
|
(33.5
|
)
|
-5.7
|
%
|
$
|
389.9
|
66.2
|
%
|
||||||||||||||
Catastrophes
|
114.5
|
19.4
|
%
|
|
0.6
|
0.1
|
%
|
|
115.0
|
19.5
|
%
|
|
|||||||||||||||
Total segment
|
$
|
537.9
|
91.3
|
%
|
|
$
|
(32.9
|
)
|
-5.6
|
%
|
|
$
|
504.9
|
85.7
|
%
|
|
|||||||||||
2016
|
|||||||||||||||||||||||||||
Attritional
|
$
|
470.2
|
79.2
|
%
|
$
|
96.5
|
16.3
|
%
|
$
|
566.7
|
95.5
|
%
|
|||||||||||||||
Catastrophes
|
22.2
|
3.7
|
%
|
|
(0.3
|
)
|
0.0
|
%
|
|
21.9
|
3.7
|
%
|
|
||||||||||||||
Total segment
|
$
|
492.4
|
82.9
|
%
|
|
$
|
96.2
|
16.3
|
%
|
|
$
|
588.6
|
99.2
|
%
|
|
||||||||||||
2015
|
|||||||||||||||||||||||||||
Attritional
|
$
|
431.4
|
70.6
|
%
|
$
|
79.8
|
13.1
|
%
|
$
|
511.2
|
83.7
|
%
|
|||||||||||||||
Catastrophes
|
-
|
0.0
|
%
|
|
0.3
|
0.0
|
%
|
|
0.3
|
0.0
|
%
|
|
|||||||||||||||
Total segment
|
$
|
431.4
|
70.6
|
%
|
|
$
|
80.1
|
13.1
|
%
|
|
$
|
511.5
|
83.7
|
%
|
|
||||||||||||
Variance 2017/2016
|
|||||||||||||||||||||||||||
Attritional
|
$
|
(46.8
|
)
|
(7.3
|
)
|
pts
|
$
|
(130.0
|
)
|
(22.0
|
)
|
pts
|
$
|
(176.8
|
)
|
(29.3
|
)
|
pts
|
|||||||||
Catastrophes
|
92.3
|
15.7
|
pts
|
0.9
|
0.1
|
pts
|
93.1
|
15.8
|
pts
|
||||||||||||||||||
Total segment
|
$
|
45.5
|
8.4
|
pts
|
$
|
(129.1
|
)
|
(21.9
|
)
|
pts
|
$
|
(83.7
|
)
|
(13.5
|
)
|
pts
|
|||||||||||
Variance 2016/2015
|
|||||||||||||||||||||||||||
Attritional
|
$
|
38.8
|
8.6
|
pts
|
$
|
16.7
|
3.2
|
pts
|
$
|
55.5
|
11.8
|
pts
|
|||||||||||||||
Catastrophes
|
22.2
|
3.7
|
pts
|
(0.6
|
)
|
-
|
pts
|
21.6
|
3.7
|
pts
|
|||||||||||||||||
Total segment
|
$
|
61.0
|
12.3
|
pts
|
$
|
16.1
|
3.2
|
pts
|
$
|
77.1
|
15.5
|
pts
|
|||||||||||||||
(Some amounts may not reconcile due to rounding.)
|
Impact of Interest Rate Shift in Basis Points
|
||||||||||||||||||||
(Dollars in millions)
|
-200
|
-100
|
0
|
100
|
200
|
|||||||||||||||
Total Market/Fair Value
|
$
|
5,524.8
|
$
|
5,367.4
|
$
|
5,213.4
|
$
|
5,061.3
|
$
|
4,910.9
|
||||||||||
Market/Fair Value Change from Base (%)
|
6.0
|
%
|
3.0
|
%
|
0.0
|
%
|
-2.9
|
%
|
-5.8
|
%
|
||||||||||
Change in Unrealized Appreciation
|
||||||||||||||||||||
After-tax from Base ($)
|
$
|
202.4
|
$
|
100.1
|
$
|
-
|
$
|
(98.9
|
)
|
$
|
(196.6
|
)
|
Impact of Interest Rate Shift in Basis Points
|
||||||||||||||||||||
(Dollars in millions)
|
-200
|
-100
|
0
|
100
|
200
|
|||||||||||||||
Total Market/Fair Value
|
$
|
6,630.2
|
$
|
6,456.9
|
$
|
6,276.8
|
$
|
6,089.0
|
$
|
5,900.4
|
||||||||||
Market/Fair Value Change from Base (%)
|
5.6
|
%
|
2.9
|
%
|
0.0
|
%
|
-3.0
|
%
|
-6.0
|
%
|
||||||||||
Change in Unrealized Appreciation
|
||||||||||||||||||||
After-tax from Base ($)
|
$
|
229.7
|
$
|
117.1
|
$
|
-
|
$
|
(122.0
|
)
|
$
|
(244.6
|
)
|
Impact of Percentage Change in Equity Fair/Market Values
|
||||||||||||||||||||
(Dollars in millions)
|
-20%
|
-10%
|
0%
|
10%
|
20%
|
|||||||||||||||
Fair/Market Value of the Equity Portfolio
|
$
|
657.9
|
$
|
740.1
|
$
|
822.4
|
$
|
904.6
|
$
|
986.9
|
||||||||||
After-tax Change in Fair/Market Value
|
(106.9
|
)
|
(53.5
|
)
|
-
|
53.5
|
106.9
|
Impact of Percentage Change in Equity Fair/Market Values
|
||||||||||||||||||||
(Dollars in millions)
|
-20%
|
-10%
|
0%
|
10%
|
20%
|
|||||||||||||||
Fair/Market Value of the Equity Portfolio
|
$
|
710.2
|
$
|
799.0
|
$
|
887.8
|
$
|
976.6
|
$
|
1,065.4
|
||||||||||
After-tax Change in Fair/Market Value
|
(115.4
|
)
|
(57.7
|
)
|
-
|
57.7
|
115.4
|
Change in Foreign Exchange Rates in Percent
|
||||||||||||||||||||
(Dollars in millions)
|
-20%
|
-10%
|
0%
|
10%
|
20%
|
|||||||||||||||
Total After-tax Foreign Exchange Exposure
|
$
|
(131.8
|
)
|
$
|
(65.9
|
)
|
$
|
-
|
$
|
65.9
|
$
|
131.8
|
Change in Foreign Exchange Rates in Percent
|
||||||||||||||||||||
(Dollars in millions)
|
-20%
|
-10%
|
0%
|
10%
|
20%
|
|||||||||||||||
Total After-tax Foreign Exchange Exposure
|
$
|
(130.8
|
)
|
$
|
(65.4
|
)
|
$
|
-
|
$
|
65.4
|
$
|
130.8
|
(Dollars in thousands)
|
2017
|
2016
|
|||||||
(1)
|
Audit Fees
|
$
|
2,641.0
|
$
|
2,092.3
|
||||
(2)
|
Audit-Related Fees
|
133.1
|
89.7
|
||||||
(3)
|
Tax Fees
|
561.5
|
331.3
|
||||||
(4)
|
All Other Fees
|
13.6
|
6.3
|
EVEREST REINSURANCE HOLDINGS, INC.
|
|||
By:
|
|||
(Chairman, President and
Chief Executive Officer)
|
Signature
|
Title
|
Date
|
|||
|
|||||
Chairman, President and Chief Executive
Officer (Principal Executive Officer)
|
|||||
|
|||||
/S/ CRAIG HOWIE
|
Executive Vice President and Chief Financial
Officer (Principal Financial Officer)
|
||||
|
|||||
Comptroller (Principal Accounting Officer)
|
|||||
Exhibit No.
|
||||
2.
|
1
|
Agreement and Plan of Merger among Everest Reinsurance Holdings, Inc., Everest Re Group, Ltd. and Everest Re Merger Corporation, incorporated herein by reference to Exhibit 2.1 to the Registration Statement on Form S-4 (No. 333-87361)
|
||
3.
|
1
|
Certificate of Incorporation of Everest Reinsurance Holdings, Inc., incorporated herein by reference to Exhibit 4.1 to the Registration Statement on Form S-8 (No. 333-05771)
|
||
3.
|
2
|
By-Laws of Everest Reinsurance Holdings, Inc., incorporated herein by reference to Exhibit 3.2 to the Everest Reinsurance Holdings, Inc. Quarterly Report on Form 10-Q for the quarter ended March 31, 2000
|
||
4.
|
1
|
Indenture, dated March 14, 2000, between Everest Reinsurance Holdings, Inc. and The Chase Manhattan Bank, as Trustee, incorporated herein by reference to Exhibit 4.1 to Everest Reinsurance Holdings, Inc. Form 8-K filed on March 15, 2000
|
||
4.
|
2
|
Third Supplemental Indenture relating to Holdings 5.40% Senior Notes due October 15, 2014, dated as of October 12, 2004, among Holdings and JPMorgan Chase Bank, as Trustee, incorporated herein by reference to Exhibit 4.1 to Everest Reinsurance Holdings, Inc. Form 8-K filed on October 12, 2004
|
||
4.
|
3
|
Fourth Supplemental Indenture relating to Holdings $400.0 million 4.868% Senior Notes due June 1, 2044, dated June 5 2014, between Holdings and the Bank of New York Mellon, as Trustee, incorporated herein by reference to Exhibit 4.1 to Everest Reinsurance Holdings, Inc. Form 8-K filed on June 5, 2014
|
||
10.
|
1
|
Completion of Tender Offer relating to Everest Reinsurance Holdings, Inc. 6.60% Fixed to Floating Rate Long Term Subordinated Notes (LoTSSM) dated March 19, 2009, incorporated herein by reference to Exhibit 99.1 to Everest Re Group, Ltd. Form 8-K filed on March 31, 2009
|
||
*10.
|
2
|
Employment agreement between Everest Global Services, Inc., Everest Reinsurance Holdings, Inc. and Dominic J. Addesso, dated July 1, 2012, incorporated herein by reference to Exhibit 10.1 to Everest Re Group, Ltd. Form 8-K filed on July 20, 2012
|
||
*10.
|
3
|
Employment agreement between Everest Global Services, Inc., Everest Reinsurance Holdings Inc. and Dominic J. Addesso, dated December 4, 2015, incorporated herein by reference to Exhibit 10.1 to Everest Re Group, Ltd. Form 8-K filed on December 8, 2015.
|
||
*10.
|
4
|
Employment agreement between Everest National Insurance Company and Jonathan M. Zaffino, dated September 8, 2017, incorporated herein by reference to Exhibit 10.1 to Everest Re Group, Ltd. Form 8-K filed on September 12, 2017.
|
||
*10.
|
5
|
Amendment of employment agreement between Everest Global Services, Inc., Everest Re Group, Ltd., Everest Reinsurance Holdings Inc. and Dominic J. Addesso, dated November 20, 2017, incorporated herein by reference to Exhibit 10.1 to Everest Re Group, Ltd. Form 8-K filed November 20, 2017
|
||
31.
|
1
|
Section 302 Certification of Dominic J. Addesso, filed herewith
|
||
31.
|
2
|
Section 302 Certification of Craig Howie, filed herewith
|
||
32.
|
1
|
101.
|
INS
|
XBRL Instance Document
|
|
101.
|
SCH
|
XBRL Taxonomy Extension Schema
|
|
101.
|
CAL
|
XBRL Taxonomy Extension Calculation Linkbase
|
|
101.
|
DEF
|
XBRL Taxonomy Extension Definition Linkbase
|
|
101.
|
LAB
|
XBRL Taxonomy Extension Label Linkbase
|
|
101.
|
PRE
|
XBRL Taxonomy Extension Presentation Linkbase
|
|
Pages
|
||
Report of Independent Registered Public Accounting Firm
|
F-2
|
|
Consolidated Balance Sheets at December 31, 2017 and 2016
|
F-3
|
|
Consolidated Statements of Operations and Comprehensive Income (Loss) for the Years Ended
|
||
F-4
|
||
Consolidated Statements of Changes in Stockholder's Equity for the Years Ended
|
||
F-5
|
||
Consolidated Statements of Cash Flows for the Years Ended
|
||
F-6
|
||
Notes to Consolidated Financial Statements
|
F-7
|
|
Schedules
|
||
I
|
Summary of Investments Other Than Investments in Related Parties at December 31, 2017
|
S-1
|
II
|
Condensed Financial Information of Registrant:
|
|
Balance Sheets as of December 31, 2017 and 2016
|
S-2
|
|
S-3
|
||
S-4
|
||
Notes to Condensed Financial Information
|
S-5
|
|
III
|
Supplementary Insurance Information for the Years Ended
|
|
S-6
|
||
IV
|
S-7
|
December 31,
|
||||||||
(Dollars in thousands, except par value per share)
|
2017
|
2016
|
||||||
(unaudited)
|
||||||||
ASSETS:
|
||||||||
Fixed maturities - available for sale, at market value
|
$
|
4,971,921
|
$
|
5,970,496
|
||||
(amortized cost: 2017, $4,927,622; 2016, $5,910,494)
|
||||||||
Equity securities - available for sale, at fair value
|
822,375
|
887,800
|
||||||
Short-term investments
|
241,506
|
306,286
|
||||||
Other invested assets (cost: 2017, $835,597; 2016, $613,680)
|
838,694
|
613,740
|
||||||
Other invested assets, at fair value
|
1,807,473
|
1,766,626
|
||||||
Cash
|
229,552
|
297,794
|
||||||
Total investments and cash
|
8,911,521
|
9,842,742
|
||||||
Note receivable - affiliated
|
250,000
|
250,000
|
||||||
Accrued investment income
|
35,376
|
45,323
|
||||||
Premiums receivable
|
1,301,827
|
1,128,639
|
||||||
Reinsurance receivables - unaffiliated
|
1,180,648
|
887,657
|
||||||
Reinsurance receivables - affiliated
|
4,940,039
|
3,686,130
|
||||||
Income Taxes | 87,110 | - | ||||||
Funds held by reinsureds
|
210,939
|
190,421
|
||||||
Deferred acquisition costs
|
307,741
|
68,621
|
||||||
Prepaid reinsurance premiums
|
346,708
|
781,384
|
||||||
Other assets
|
316,603
|
202,519
|
||||||
TOTAL ASSETS
|
$
|
17,888,512
|
$
|
17,083,436
|
||||
LIABILITIES:
|
||||||||
Reserve for losses and loss adjustment expenses
|
$
|
9,343,028
|
$
|
8,331,288
|
||||
Unearned premium reserve
|
1,607,622
|
1,312,386
|
||||||
Funds held under reinsurance treaties
|
40,536
|
110,836
|
||||||
Commission reserves
|
21,464
|
52,037
|
||||||
Other net payable to reinsurers
|
491,299
|
815,298
|
||||||
4.868% Senior notes due 6/1/2044
|
396,834
|
396,714
|
||||||
6.6% Long term notes due 5/1/2067
|
236,561
|
236,462
|
||||||
Accrued interest on debt and borrowings
|
2,727
|
3,537
|
||||||
Income taxes
|
-
|
|
148,940
|
|||||
Unsettled securities payable
|
25,338
|
27,121
|
||||||
Other liabilities
|
310,380
|
350,264
|
||||||
Total liabilities
|
12,475,789
|
11,784,883
|
||||||
Commitments and Contingencies (Note 15)
|
||||||||
STOCKHOLDER'S EQUITY:
|
||||||||
Common stock, par value: $0.01; 3,000 shares authorized;
|
||||||||
1,000 shares issued and outstanding (2017 and 2016)
|
-
|
-
|
||||||
Additional paid-in capital
|
387,841
|
387,567
|
||||||
Accumulated other comprehensive income (loss), net of deferred income tax expense
|
||||||||
(benefit) of ($299) at 2017 and ($19,549) at 2016
|
(942
|
)
|
(36,315
|
)
|
||||
Retained earnings
|
5,025,824
|
4,947,301
|
||||||
Total stockholder's equity
|
5,412,723
|
5,298,553
|
||||||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY
|
$
|
17,888,512
|
$
|
17,083,436
|
||||
The accompanying notes are an integral part of the consolidated financial statements.
|
Years Ended December 31,
|
||||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
REVENUES:
|
||||||||||||
Premiums earned
|
$
|
1,949,595
|
$
|
2,094,049
|
$
|
2,143,760
|
||||||
Net investment income
|
286,259
|
264,807
|
273,253
|
|||||||||
Net realized capital gains (losses):
|
||||||||||||
Other-than-temporary impairments on fixed maturity securities
|
(6,077
|
)
|
(25,679
|
)
|
(78,833
|
)
|
||||||
Other-than-temporary impairments on fixed maturity securities
|
||||||||||||
transferred to other comprehensive income (loss)
|
-
|
-
|
-
|
|||||||||
Realized gain (loss) on sale of subsidiary
|
-
|
(28,032
|
)
|
94,704
|
||||||||
Other net realized capital gains (losses)
|
167,630
|
24,770
|
34,464
|
|||||||||
Total net realized capital gains (losses)
|
161,553
|
(28,941
|
)
|
50,335
|
||||||||
Other income (expense)
|
23,750
|
(10,542
|
)
|
29,256
|
||||||||
Total revenues
|
2,421,157
|
2,319,373
|
2,496,604
|
|||||||||
CLAIMS AND EXPENSES:
|
||||||||||||
Incurred losses and loss adjustment expenses
|
2,039,751
|
1,350,280
|
1,319,561
|
|||||||||
Commission, brokerage, taxes and fees
|
210,925
|
281,424
|
312,325
|
|||||||||
Other underwriting expenses
|
254,886
|
244,966
|
214,819
|
|||||||||
Corporate expenses
|
7,394
|
8,277
|
7,179
|
|||||||||
Interest, fee and bond issue cost amortization expense
|
31,183
|
35,435
|
35,434
|
|||||||||
Total claims and expenses
|
2,544,139
|
1,920,382
|
1,889,318
|
|||||||||
INCOME (LOSS) BEFORE TAXES
|
(122,982
|
)
|
398,991
|
607,286
|
||||||||
Income tax expense (benefit)
|
(201,180
|
)
|
97,347
|
194,896
|
||||||||
NET INCOME (LOSS)
|
$
|
78,198
|
$
|
301,644
|
$
|
412,390
|
||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||
Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period
|
(10,536
|
)
|
4,114
|
(23,157
|
)
|
|||||||
Less: reclassification adjustment for realized losses (gains) included in net income (loss)
|
2,303
|
21,273
|
(817
|
)
|
||||||||
Total URA(D) on securities arising during the period
|
(8,233
|
)
|
25,387
|
(23,974
|
)
|
|||||||
Foreign currency translation adjustments
|
37,427
|
2,849
|
(54,578
|
)
|
||||||||
Benefit plan actuarial net gain (loss) for the period
|
1,027
|
(7,488
|
)
|
5,681
|
||||||||
Reclassification adjustment for amortization of net (gain) loss included in net income (loss)
|
5,477
|
5,073
|
6,216
|
|||||||||
Total benefit plan net gain (loss) for the period
|
6,504
|
(2,415
|
)
|
11,897
|
||||||||
Total other comprehensive income (loss), net of tax
|
35,698
|
25,821
|
(66,655
|
)
|
||||||||
COMPREHENSIVE INCOME (LOSS)
|
$
|
113,896
|
$
|
327,465
|
$
|
345,735
|
||||||
The accompanying notes are an integral part of the consolidated financial statements.
|
Years Ended December 31,
|
||||||||||||
(Dollars in thousands, except share amounts)
|
2017
|
2016
|
2015
|
|||||||||
COMMON STOCK (shares outstanding):
|
||||||||||||
Balance, beginning of period
|
1,000
|
1,000
|
1,000
|
|||||||||
Balance, end of period
|
1,000
|
1,000
|
1,000
|
|||||||||
ADDITIONAL PAID-IN CAPITAL:
|
||||||||||||
Balance, beginning of period
|
387,567
|
$
|
374,789
|
$
|
362,293
|
|||||||
Share-based compensation plans
|
274
|
12,778
|
12,496
|
|||||||||
Balance, end of period
|
387,841
|
387,567
|
374,789
|
|||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS),
|
||||||||||||
NET OF DEFERRED INCOME TAXES:
|
||||||||||||
Balance, beginning of period
|
(36,315
|
)
|
(62,136
|
)
|
4,519
|
|||||||
Net increase (decrease) during the period
|
35,698
|
25,821
|
(66,655
|
)
|
||||||||
Reclass due to early adoption of Accounting Standards Update 2018-02
|
(325
|
)
|
-
|
-
|
||||||||
Balance, end of period
|
(942
|
)
|
(36,315
|
)
|
(62,136
|
)
|
||||||
RETAINED EARNINGS:
|
||||||||||||
Balance, beginning of period
|
4,947,301
|
4,645,657
|
4,233,267
|
|||||||||
Net income (loss)
|
78,198
|
301,644
|
412,390
|
|||||||||
Reclass due to early adoption of Accounting Standards Update 2018-02
|
325
|
-
|
-
|
|||||||||
Balance, end of period
|
5,025,824
|
4,947,301
|
4,645,657
|
|||||||||
TOTAL STOCKHOLDER'S EQUITY, END OF PERIOD
|
$
|
5,412,723
|
$
|
5,298,553
|
$
|
4,958,310
|
||||||
The accompanying notes are an integral part of the consolidated financial statements.
|
Years Ended December 31,
|
||||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||
Net income (loss)
|
$
|
78,198
|
$
|
301,644
|
$
|
412,390
|
||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Decrease (increase) in premiums receivable
|
(170,234
|
)
|
1,140
|
(49,602
|
)
|
|||||||
Decrease (increase) in funds held by reinsureds, net
|
(90,410
|
)
|
(4,445
|
)
|
4,737
|
|||||||
Decrease (increase) in reinsurance receivables
|
(731,292
|
)
|
(112,797
|
)
|
(465,761
|
)
|
||||||
Decrease (increase) in income taxes
|
(250,118
|
)
|
62,991
|
60,494
|
||||||||
Decrease (increase) in prepaid reinsurance premiums
|
436,571
|
(8,083
|
)
|
30,985
|
||||||||
Increase (decrease) in reserve for losses and loss adjustment expenses
|
964,415
|
384,628
|
184,845
|
|||||||||
Increase (decrease) in unearned premiums
|
291,108
|
(38,271
|
)
|
(82,494
|
)
|
|||||||
Increase (decrease) in other net payable to reinsurers
|
(329,946
|
)
|
(371,856
|
)
|
195,936
|
|||||||
Increase (decrease) in losses in course of payment
|
(31,815
|
)
|
(42,643
|
)
|
(51,416
|
)
|
||||||
Change in equity adjustments in limited partnerships
|
(35,749
|
)
|
(24,486
|
)
|
(18,144
|
)
|
||||||
Distribution of limited partnership income
|
33,629
|
32,613
|
45,235
|
|||||||||
Change in other assets and liabilities, net
|
(367,338
|
)
|
15,148
|
13,349
|
||||||||
Non-cash compensation expense
|
10,212
|
9,481
|
8,025
|
|||||||||
Amortization of bond premium (accrual of bond discount)
|
17,690
|
18,051
|
18,160
|
|||||||||
Net realized capital (gains) losses
|
(161,553
|
)
|
28,941
|
(50,335
|
)
|
|||||||
Net cash provided by (used in) operating activities
|
(336,632
|
)
|
252,056
|
256,404
|
||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||
Proceeds from fixed maturities matured/called - available for sale, at market value
|
1,005,532
|
781,744
|
902,932
|
|||||||||
Proceeds from fixed maturities sold - available for sale, at market value
|
1,676,203
|
704,191
|
544,955
|
|||||||||
Proceeds from fixed maturities sold - available for sale, at fair value
|
-
|
5,837
|
1,824
|
|||||||||
Proceeds from equity securities sold - available for sale, at market value
|
-
|
-
|
16
|
|||||||||
Proceeds from equity securities sold - available for sale, at fair value
|
586,496
|
695,039
|
567,069
|
|||||||||
Proceeds from sale of subsidiary (net of cash disposed)
|
-
|
47,721
|
3,934
|
|||||||||
Distributions from other invested assets
|
2,327,206
|
1,756,484
|
51,494
|
|||||||||
Cost of fixed maturities acquired - available for sale, at market value
|
(2,431,780
|
)
|
(2,110,113
|
)
|
(1,811,463
|
)
|
||||||
Cost of fixed maturities acquired - available for sale, at fair value
|
-
|
(3,940
|
)
|
(2,436
|
)
|
|||||||
Cost of equity securities acquired - available for sale, at fair value
|
(396,056
|
)
|
(324,407
|
)
|
(530,538
|
)
|
||||||
Cost of other invested assets acquired
|
(2,546,289
|
)
|
(1,928,119
|
)
|
(93,728
|
)
|
||||||
Net change in short-term investments
|
67,164
|
257,792
|
(6,145
|
)
|
||||||||
Net change in unsettled securities transactions
|
(40,530
|
)
|
10,474
|
(23,447
|
)
|
|||||||
Net cash provided by (used in) investing activities
|
247,946
|
(107,297
|
)
|
(395,533
|
)
|
|||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||
Tax benefit from share-based compensation, net of expense
|
(9,938
|
)
|
3,298
|
4,472
|
||||||||
Net cash provided by (used in) financing activities
|
(9,938
|
)
|
3,298
|
4,472
|
||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
30,382
|
(5,692
|
)
|
(33,889
|
)
|
|||||||
Net increase (decrease) in cash
|
(68,242
|
)
|
142,365
|
(168,546
|
)
|
|||||||
Cash, beginning of period
|
297,794
|
155,429
|
323,975
|
|||||||||
Cash, end of period
|
$
|
229,552
|
$
|
297,794
|
$
|
155,429
|
||||||
SUPPLEMENTAL CASH FLOW INFORMATION:
|
||||||||||||
Income taxes paid (recovered)
|
$
|
53,019
|
$
|
31,018
|
$
|
131,632
|
||||||
Interest paid
|
$
|
31,775
|
35,217
|
35,217
|
||||||||
NON-CASH TRANSACTION:
|
||||||||||||
Transfer of fixed maturities, available for sale, at market value to Bermuda Re as part of
|
$
|
790,583
|
$
|
-
|
$
|
-
|
||||||
settlement for loss portfolio transfer agreement as of 12/31/17
|
||||||||||||
Exchange of common shares of parent company, held as other invested assets at fair value,
|
$
|
-
|
$
|
-
|
$
|
1,773,214
|
||||||
for preferred shares of an affiliated company, held as other invested assets at fair value
|
||||||||||||
The accompanying notes are an integral part of the consolidated financial statements.
|
Years Ended December 31,
|
||||||||
(Dollars in thousands)
|
2017
|
2016
|
||||||
Reinsurance recoverable and premium receivables
|
$
|
23,011
|
$
|
23,011
|
Years Ended December 31,
|
||||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Deferred acquisition costs
|
$
|
210,925
|
$
|
281,424
|
$
|
312,325
|
CONSOLIDATED BALANCE SHEETS
|
||||||||||||||||||||||||
As Previously
|
Impact of
|
As Previously
|
Impact of
|
|||||||||||||||||||||
Reported
|
Revisions
|
As Revised
|
Reported
|
Revisions
|
As Revised
|
|||||||||||||||||||
(Dollars in thousands, except par value per share)
|
||||||||||||||||||||||||
ASSETS:
|
||||||||||||||||||||||||
Deferred acquisition costs
|
$
|
73,924
|
$
|
(5,303
|
)
|
$
|
68,621
|
$
|
92,651
|
$
|
(6,249
|
)
|
$
|
86,402
|
||||||||||
TOTAL ASSETS
|
$
|
17,088,739
|
$
|
(5,303
|
)
|
$
|
17,083,436
|
$
|
16,695,203
|
$
|
(6,249
|
)
|
$
|
16,688,954
|
||||||||||
LIABILITIES:
|
||||||||||||||||||||||||
Other net payable to reinsurers
|
$
|
860,391
|
$
|
(45,093
|
)
|
$
|
815,298
|
$
|
1,225,260
|
$
|
(37,480
|
)
|
$
|
1,187,780
|
||||||||||
Income taxes
|
142,143
|
6,797
|
148,940
|
68,024
|
4,132
|
72,156
|
||||||||||||||||||
Total liabilities
|
11,823,179
|
(38,296
|
)
|
11,784,883
|
11,763,992
|
(33,348
|
)
|
11,730,644
|
||||||||||||||||
STOCKHOLDERS EQUITY:
|
||||||||||||||||||||||||
Retained earnings
|
4,914,308
|
32,993
|
4,947,301
|
4,618,558
|
27,099
|
4,645,657
|
||||||||||||||||||
Total stockholder's equity
|
5,265,560
|
32,993
|
5,298,553
|
4,931,211
|
27,099
|
4,958,310
|
||||||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY
|
$
|
17,088,739
|
$
|
(5,303
|
)
|
$
|
17,083,436
|
$
|
16,695,203
|
$
|
(6,249
|
)
|
$
|
16,688,954
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
Year Ended December 31, 2016
|
Year Ended December 31, 2015
|
||||||||||||||||||||||
AND COMPREHENSIVE INCOME (LOSS):
|
As Previously
|
Impact of
|
As Previously
|
Impact of
|
||||||||||||||||||||
Reported
|
Revisions
|
As Revised
|
Reported
|
Revisions
|
As Revised
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
CLAIMS AND EXPENSES:
|
||||||||||||||||||||||||
Commission, brokerage, taxes and fees
|
$
|
289,982
|
$
|
(8,558
|
)
|
$
|
281,424
|
$
|
315,069
|
$
|
(2,744
|
)
|
$
|
312,325
|
||||||||||
Total claims and expenses
|
1,928,940
|
(8,558
|
)
|
1,920,382
|
1,892,062
|
(2,744
|
)
|
1,889,318
|
||||||||||||||||
INCOME (LOSS) BEFORE TAXES
|
390,433
|
8,558
|
398,991
|
604,542
|
2,744
|
607,286
|
||||||||||||||||||
Income tax expense (benefit)
|
94,683
|
2,664
|
97,347
|
191,889
|
3,007
|
194,896
|
||||||||||||||||||
NET INCOME (LOSS)
|
$
|
295,750
|
$
|
5,894
|
$
|
301,644
|
$
|
412,653
|
$
|
(263
|
)
|
$
|
412,390
|
|||||||||||
COMPREHENSIVE INCOME (LOSS)
|
$
|
321,571
|
$
|
5,894
|
$
|
327,465
|
$
|
345,998
|
$
|
(263
|
)
|
$
|
345,735
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
Year Ended December 31, 2014
|
|||||||||||
AND COMPREHENSIVE INCOME (LOSS):
|
As Previously
|
Impact of
|
||||||||||
Reported
|
Revisions
|
As Revised
|
||||||||||
(Dollars in thousands)
|
||||||||||||
CLAIMS AND EXPENSES:
|
||||||||||||
Commission, brokerage, taxes and fees
|
$
|
339,402
|
$
|
(427
|
)
|
$
|
338,975
|
|||||
Total claims and expenses
|
1,930,749
|
(427
|
)
|
1,930,322
|
||||||||
INCOME (LOSS) BEFORE TAXES
|
657,688
|
427
|
658,115
|
|||||||||
Income tax expense (benefit)
|
203,562
|
1,125
|
204,687
|
|||||||||
NET INCOME (LOSS)
|
$
|
454,126
|
$
|
(698
|
)
|
$
|
453,428
|
|||||
COMPREHENSIVE INCOME (LOSS)
|
$
|
370,997
|
$
|
(698
|
)
|
$
|
370,299
|
CONSOLIDATED STATEMENTS OF
|
Year Ended December 31, 2016
|
Year Ended December 31, 2015
|
||||||||||||||||||||||
CHANGES IN STOCKHOLDER'S EQUITY
|
As Previously
|
Impact of
|
As Previously
|
Impact of
|
||||||||||||||||||||
Reported
|
Revisions
|
As Revised
|
Reported
|
Revisions
|
As Revised
|
|||||||||||||||||||
(Dollars in thousands, except share amounts)
|
||||||||||||||||||||||||
RETAINED EARNINGS:
|
||||||||||||||||||||||||
Balance, beginning of period
|
$
|
4,618,558
|
$
|
27,099
|
$
|
4,645,657
|
$
|
4,205,905
|
$
|
27,362
|
$
|
4,233,267
|
||||||||||||
Net income (loss)
|
295,750
|
5,894
|
301,644
|
412,653
|
(263
|
)
|
412,390
|
|||||||||||||||||
Balance, end of period
|
4,914,308
|
32,993
|
4,947,301
|
4,618,558
|
27,099
|
4,645,657
|
||||||||||||||||||
TOTAL STOCKHOLDER'S EQUITY, END OF PERIOD
|
$
|
5,265,560
|
$
|
32,993
|
$
|
5,298,553
|
$
|
4,931,211
|
$
|
27,099
|
$
|
4,958,310
|
CONSOLIDATED STATEMENTS OF
|
Year Ended December 31, 2014
|
|||||||||||
CHANGES IN STOCKHOLDER'S EQUITY
|
As Previously
|
Impact of
|
||||||||||
Reported
|
Revisions
|
As Revised
|
||||||||||
(Dollars in thousands, except share amounts)
|
||||||||||||
RETAINED EARNINGS:
|
||||||||||||
Balance, beginning of period
|
$
|
3,751,779
|
$
|
28,060
|
$
|
3,779,839
|
||||||
Net income (loss)
|
454,126
|
(698
|
)
|
453,428
|
||||||||
Balance, end of period
|
4,205,905
|
27,362
|
4,233,267
|
|||||||||
TOTAL STOCKHOLDER'S EQUITY, END OF PERIOD
|
$
|
4,572,717
|
$
|
27,362
|
$
|
4,600,079
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Year Ended December 31, 2016
|
Year Ended December 31, 2015
|
||||||||||||||||||||||
As Previously
|
Impact of
|
As Previously
|
Impact of
|
|||||||||||||||||||||
Reported
|
Revisions
|
As Revised
|
Reported
|
Revisions
|
As Revised
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||||||||||||||
Net income (loss)
|
$
|
295,750
|
$
|
5,894
|
$
|
301,644
|
$
|
412,653
|
$
|
(263
|
)
|
$
|
412,390
|
|||||||||||
Decrease (increase) in income taxes
|
60,325
|
2,666
|
62,991
|
57,487
|
3,007
|
60,494
|
||||||||||||||||||
Increase (decrease) in other net payable to reinsurers
|
(364,242
|
)
|
(7,614
|
)
|
(371,856
|
)
|
204,526
|
(8,590
|
)
|
195,936
|
||||||||||||||
Change in other assets and liabilities, net
|
16,090
|
(946
|
)
|
15,144
|
7,499
|
5,846
|
13,345
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Year Ended December 31, 2014
|
|||||||||||
As Previously
|
Impact of
|
|||||||||||
Reported
|
Revisions
|
As Revised
|
||||||||||
(Dollars in thousands)
|
||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||
Net income (loss)
|
$
|
454,126
|
$
|
(698
|
)
|
$
|
453,428
|
|||||
Decrease (increase) in income taxes
|
68,206
|
1,125
|
69,331
|
|||||||||
Increase (decrease) in other net payable to reinsurers
|
5,130
|
(3,216
|
)
|
1,914
|
||||||||
Change in other assets and liabilities, net
|
81,388
|
2,789
|
84,177
|
Amortized
|
Unrealized
|
Unrealized
|
Market
|
OTTI in AOCI
|
||||||||||||||||
(Dollars in thousands)
|
Cost
|
Appreciation
|
Depreciation
|
Value
|
(a)
|
|||||||||||||||
Fixed maturity securities
|
||||||||||||||||||||
U.S. Treasury securities and obligations of
|
||||||||||||||||||||
U.S. government agencies and corporations
|
$
|
671,449
|
$
|
658
|
$
|
(7,594
|
)
|
$
|
664,513
|
$
|
-
|
|||||||||
Obligations of U.S. states and political subdivisions
|
563,789
|
22,124
|
(444
|
)
|
585,469
|
-
|
||||||||||||||
Corporate securities
|
2,009,665
|
28,003
|
(13,459
|
)
|
2,024,209
|
129
|
||||||||||||||
Asset-backed securities
|
138,203
|
207
|
(386
|
)
|
138,024
|
-
|
||||||||||||||
Mortgage-backed securities
|
||||||||||||||||||||
Commercial
|
52,121
|
115
|
(485
|
)
|
51,751
|
-
|
||||||||||||||
Agency residential
|
114,435
|
511
|
(1,658
|
)
|
113,288
|
-
|
||||||||||||||
Non-agency residential
|
51
|
7
|
-
|
58
|
-
|
|||||||||||||||
Foreign government securities
|
514,048
|
17,065
|
(7,493
|
)
|
523,620
|
-
|
||||||||||||||
Foreign corporate securities
|
863,861
|
20,121
|
(12,993
|
)
|
870,989
|
377
|
||||||||||||||
Total fixed maturity securities
|
$
|
4,927,622
|
$
|
88,811
|
$
|
(44,512
|
)
|
$
|
4,971,921
|
$
|
506
|
Amortized
|
Unrealized
|
Unrealized
|
Market
|
OTTI in AOCI
|
||||||||||||||||
(Dollars in thousands)
|
Cost
|
Appreciation
|
Depreciation
|
Value
|
(a)
|
|||||||||||||||
Fixed maturity securities
|
||||||||||||||||||||
U.S. Treasury securities and obligations of
|
||||||||||||||||||||
U.S. government agencies and corporations
|
$
|
693,005
|
$
|
2,509
|
$
|
(4,434
|
)
|
$
|
691,080
|
$
|
-
|
|||||||||
Obligations of U.S. states and political subdivisions
|
723,938
|
18,016
|
(11,970
|
)
|
729,984
|
-
|
||||||||||||||
Corporate securities
|
2,119,324
|
50,665
|
(15,786
|
)
|
2,154,203
|
4,868
|
||||||||||||||
Asset-backed securities
|
136,826
|
330
|
(129
|
)
|
137,027
|
-
|
||||||||||||||
Mortgage-backed securities
|
||||||||||||||||||||
Commercial
|
75,435
|
510
|
(452
|
)
|
75,493
|
-
|
||||||||||||||
Agency residential
|
721,772
|
2,365
|
(8,993
|
)
|
715,144
|
-
|
||||||||||||||
Non-agency residential
|
76
|
12
|
-
|
88
|
-
|
|||||||||||||||
Foreign government securities
|
495,572
|
22,088
|
(10,383
|
)
|
507,277
|
-
|
||||||||||||||
Foreign corporate securities
|
944,546
|
30,015
|
(14,361
|
)
|
960,200
|
175
|
||||||||||||||
Total fixed maturity securities
|
$
|
5,910,494
|
$
|
126,510
|
$
|
(66,508
|
)
|
$
|
5,970,496
|
$
|
5,043
|
Amortized
|
Market
|
Amortized
|
Market
|
|||||||||||||
(Dollars in thousands)
|
Cost
|
Value
|
Cost
|
Value
|
||||||||||||
Fixed maturity securities – available for sale
|
||||||||||||||||
Due in one year or less
|
$
|
319,858
|
$
|
320,746
|
$
|
394,401
|
$
|
392,824
|
||||||||
Due after one year through five years
|
2,601,898
|
2,595,237
|
2,925,786
|
2,955,325
|
||||||||||||
Due after five years through ten years
|
1,051,431
|
1,069,617
|
879,762
|
894,166
|
||||||||||||
Due after ten years
|
649,625
|
683,200
|
776,436
|
800,429
|
||||||||||||
Asset-backed securities
|
138,203
|
138,024
|
136,826
|
137,027
|
||||||||||||
Mortgage-backed securities
|
||||||||||||||||
Commercial
|
52,121
|
51,751
|
75,435
|
75,493
|
||||||||||||
Agency residential
|
114,435
|
113,288
|
721,772
|
715,144
|
||||||||||||
Non-agency residential
|
51
|
58
|
76
|
88
|
||||||||||||
Total fixed maturity securities
|
$
|
4,927,622
|
$
|
4,971,921
|
$
|
5,910,494
|
$
|
5,970,496
|
Years Ended December 31,
|
||||||||
(Dollars in thousands)
|
2017
|
2016
|
||||||
Increase (decrease) during the period between the market value and cost
|
||||||||
of investments carried at market value, and deferred taxes thereon:
|
||||||||
Fixed maturity securities
|
$
|
(11,166
|
)
|
$
|
33,883
|
|||
Fixed maturity securities, other-than-temporary impairment
|
(4,537
|
)
|
5,113
|
|||||
Other invested assets
|
3,037
|
60
|
||||||
Change in unrealized appreciation (depreciation), pre-tax
|
(12,666
|
)
|
39,056
|
|||||
Deferred tax benefit (expense)
|
2,845
|
(11,880
|
)
|
|||||
Deferred tax benefit (expense), other-than-temporary impairment
|
1,588
|
(1,789
|
)
|
|||||
Change in unrealized appreciation (depreciation),
|
||||||||
net of deferred taxes, included in stockholder's equity
|
$
|
(8,233
|
)
|
$
|
25,387
|
Duration of Unrealized Loss at December 31, 2017 By Security Type
|
||||||||||||||||||||||||
Less than 12 months
|
Greater than 12 months
|
Total
|
||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||
(Dollars in thousands)
|
Market Value
|
Depreciation
|
Market Value
|
Depreciation
|
Market Value
|
Depreciation
|
||||||||||||||||||
Fixed maturity securities - available for sale
|
||||||||||||||||||||||||
U.S. Treasury securities and obligations of
|
||||||||||||||||||||||||
U.S. government agencies and corporations
|
$
|
446,963
|
$
|
(2,921
|
)
|
$
|
198,684
|
$
|
(4,673
|
)
|
$
|
645,647
|
$
|
(7,594
|
)
|
|||||||||
Obligations of U.S. states and political subdivisions
|
4,400
|
(27
|
)
|
37,886
|
(417
|
)
|
42,286
|
(444
|
)
|
|||||||||||||||
Corporate securities
|
455,431
|
(6,674
|
)
|
216,715
|
(6,785
|
)
|
672,146
|
(13,459
|
)
|
|||||||||||||||
Asset-backed securities
|
75,196
|
(328
|
)
|
7,991
|
(58
|
)
|
83,187
|
(386
|
)
|
|||||||||||||||
Mortgage-backed securities
|
||||||||||||||||||||||||
Commercial
|
26,650
|
(264
|
)
|
5,972
|
(221
|
)
|
32,622
|
(485
|
)
|
|||||||||||||||
Agency residential
|
46,234
|
(322
|
)
|
58,135
|
(1,336
|
)
|
104,369
|
(1,658
|
)
|
|||||||||||||||
Foreign government securities
|
159,852
|
(1,567
|
)
|
121,018
|
(5,926
|
)
|
280,870
|
(7,493
|
)
|
|||||||||||||||
Foreign corporate securities
|
263,547
|
(4,590
|
)
|
109,727
|
(8,403
|
)
|
373,274
|
(12,993
|
)
|
|||||||||||||||
Total fixed maturity securities
|
$
|
1,478,273
|
$
|
(16,693
|
)
|
$
|
756,128
|
$
|
(27,819
|
)
|
$
|
2,234,401
|
$
|
(44,512
|
)
|
Duration of Unrealized Loss at December 31, 2017 By Maturity
|
||||||||||||||||||||||||
Less than 12 months
|
Greater than 12 months
|
Total
|
||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||
(Dollars in thousands)
|
Market Value
|
Depreciation
|
Market Value
|
Depreciation
|
Market Value
|
Depreciation
|
||||||||||||||||||
Fixed maturity securities
|
||||||||||||||||||||||||
Due in one year or less
|
$
|
102,939
|
$
|
(498
|
)
|
$
|
40,006
|
$
|
(1,627
|
)
|
$
|
142,945
|
$
|
(2,125
|
)
|
|||||||||
Due in one year through five years
|
973,217
|
(10,291
|
)
|
488,945
|
(18,917
|
)
|
1,462,162
|
(29,208
|
)
|
|||||||||||||||
Due in five years through ten years
|
189,103
|
(3,713
|
)
|
116,136
|
(5,216
|
)
|
305,239
|
(8,929
|
)
|
|||||||||||||||
Due after ten years
|
64,934
|
(1,277
|
)
|
38,943
|
(444
|
)
|
103,877
|
(1,721
|
)
|
|||||||||||||||
Asset-backed securities
|
75,196
|
(328
|
)
|
7,991
|
(58
|
)
|
83,187
|
(386
|
)
|
|||||||||||||||
Mortgage-backed securities
|
72,884
|
(586
|
)
|
64,107
|
(1,557
|
)
|
136,991
|
(2,143
|
)
|
|||||||||||||||
Total fixed maturity securities
|
$
|
1,478,273
|
$
|
(16,693
|
)
|
$
|
756,128
|
$
|
(27,819
|
)
|
$
|
2,234,401
|
$
|
(44,512
|
)
|
Duration of Unrealized Loss at December 31, 2016 By Security Type
|
||||||||||||||||||||||||
Less than 12 months
|
Greater than 12 months
|
Total
|
||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||
(Dollars in thousands)
|
Market Value
|
Depreciation
|
Market Value
|
Depreciation
|
Market Value
|
Depreciation
|
||||||||||||||||||
Fixed maturity securities - available for sale
|
||||||||||||||||||||||||
U.S. Treasury securities and obligations of
|
||||||||||||||||||||||||
U.S. government agencies and corporations
|
$
|
469,571
|
$
|
(4,434
|
)
|
$
|
-
|
$
|
-
|
$
|
469,571
|
$
|
(4,434
|
)
|
||||||||||
Obligations of U.S. states and political subdivisions
|
221,088
|
(11,486
|
)
|
564
|
(484
|
)
|
221,652
|
(11,970
|
)
|
|||||||||||||||
Corporate securities
|
431,757
|
(10,121
|
)
|
118,172
|
(5,665
|
)
|
549,929
|
(15,786
|
)
|
|||||||||||||||
Asset-backed securities
|
35,065
|
(122
|
)
|
5,745
|
(7
|
)
|
40,810
|
(129
|
)
|
|||||||||||||||
Mortgage-backed securities
|
||||||||||||||||||||||||
Commercial
|
27,230
|
(391
|
)
|
3,060
|
(61
|
)
|
30,290
|
(452
|
)
|
|||||||||||||||
Agency residential
|
487,000
|
(6,320
|
)
|
90,740
|
(2,673
|
)
|
577,740
|
(8,993
|
)
|
|||||||||||||||
Foreign government securities
|
218,171
|
(2,713
|
)
|
61,542
|
(7,670
|
)
|
279,713
|
(10,383
|
)
|
|||||||||||||||
Foreign corporate securities
|
264,939
|
(4,950
|
)
|
75,489
|
(9,411
|
)
|
340,428
|
(14,361
|
)
|
|||||||||||||||
Total fixed maturity securities
|
$
|
2,154,821
|
$
|
(40,537
|
)
|
$
|
355,312
|
$
|
(25,971
|
)
|
$
|
2,510,133
|
$
|
(66,508
|
)
|
Duration of Unrealized Loss at December 31, 2016 By Maturity
|
||||||||||||||||||||||||
Less than 12 months
|
Greater than 12 months
|
Total
|
||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||
(Dollars in thousands)
|
Market Value
|
Depreciation
|
Market Value
|
Depreciation
|
Market Value
|
Depreciation
|
||||||||||||||||||
Fixed maturity securities
|
||||||||||||||||||||||||
Due in one year or less
|
$
|
111,926
|
$
|
(322
|
)
|
$
|
21,691
|
$
|
(3,625
|
)
|
$
|
133,617
|
$
|
(3,947
|
)
|
|||||||||
Due in one year through five years
|
1,015,066
|
(10,567
|
)
|
190,960
|
(16,511
|
)
|
1,206,026
|
(27,078
|
)
|
|||||||||||||||
Due in five years through ten years
|
243,082
|
(10,369
|
)
|
41,371
|
(2,961
|
)
|
284,453
|
(13,330
|
)
|
|||||||||||||||
Due after ten years
|
235,452
|
(12,446
|
)
|
1,745
|
(133
|
)
|
237,197
|
(12,579
|
)
|
|||||||||||||||
Asset-backed securities
|
35,065
|
(122
|
)
|
5,745
|
(7
|
)
|
40,810
|
(129
|
)
|
|||||||||||||||
Mortgage-backed securities
|
514,230
|
(6,711
|
)
|
93,800
|
(2,734
|
)
|
608,030
|
(9,445
|
)
|
|||||||||||||||
Total fixed maturity securities
|
$
|
2,154,821
|
$
|
(40,537
|
)
|
$
|
355,312
|
$
|
(25,971
|
)
|
$
|
2,510,133
|
$
|
(66,508
|
)
|
Years Ended December 31,
|
||||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Fixed maturities
|
$
|
193,676
|
$
|
182,132
|
$
|
188,300
|
||||||
Equity securities
|
25,852
|
32,317
|
34,418
|
|||||||||
Short-term investments and cash
|
2,870
|
1,234
|
964
|
|||||||||
Other invested assets
|
||||||||||||
Limited partnerships
|
36,603
|
25,194
|
19,613
|
|||||||||
Dividends from Parent's shares
|
-
|
-
|
38,880
|
|||||||||
Dividends from preferred shares of affiliate
|
31,032
|
31,032
|
-
|
|||||||||
Other
|
6,675
|
1,017
|
1,804
|
|||||||||
Gross investment income before adjustments
|
296,708
|
272,926
|
283,979
|
|||||||||
Funds held interest income (expense)
|
5,006
|
6,073
|
5,611
|
|||||||||
Interest income from Parent
|
4,300
|
4,300
|
4,300
|
|||||||||
Gross investment income
|
306,014
|
283,299
|
293,890
|
|||||||||
Investment expenses
|
(19,755
|
)
|
(18,492
|
)
|
(20,637
|
)
|
||||||
Net investment income
|
$
|
286,259
|
$
|
264,807
|
$
|
273,253
|
||||||
(Some amounts may not reconcile due to rounding.)
|
Years Ended December 31,
|
||||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Fixed maturity securities, market value:
|
||||||||||||
Other-than-temporary impairments
|
$
|
(6,077
|
)
|
$
|
(25,679
|
)
|
$
|
(78,833
|
)
|
|||
Gains (losses) from sales
|
2,473
|
(6,981
|
)
|
(36,299
|
)
|
|||||||
Fixed maturity securities, fair value:
|
||||||||||||
Gains (losses) from sales
|
-
|
(1,586
|
)
|
25
|
||||||||
Gains (losses) from fair value adjustments
|
-
|
1,381
|
(44
|
)
|
||||||||
Equity securities, market value:
|
||||||||||||
Gains (losses) from sales
|
-
|
-
|
1
|
|||||||||
Equity securities, fair value:
|
||||||||||||
Gains (losses) from sales
|
6,556
|
(12,561
|
)
|
(8,010
|
)
|
|||||||
Gains (losses) from fair value adjustments
|
117,695
|
51,077
|
(39,119
|
)
|
||||||||
Other invested assets
|
61
|
18
|
-
|
|||||||||
Other invested assets, fair value:
|
||||||||||||
Gains (losses) from exchange
|
-
|
-
|
88,354
|
|||||||||
Gains (losses) from fair value adjustments
|
40,846
|
(6,588
|
)
|
29,549
|
||||||||
Gains (losses) on sale of subsidiary
|
-
|
(28,032
|
)
|
94,704
|
||||||||
Short-term investment gains (losses)
|
(1
|
)
|
10
|
7
|
||||||||
Total net realized capital gains (losses)
|
$
|
161,553
|
$
|
(28,941
|
)
|
$
|
50,335
|
Years Ended December 31,
|
||||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Proceeds from sales of fixed maturity securities
|
$
|
1,676,203
|
$
|
710,028
|
$
|
546,779
|
||||||
Gross gains from sales
|
31,328
|
18,907
|
10,935
|
|||||||||
Gross losses from sales
|
(28,855
|
)
|
(27,474
|
)
|
(47,209
|
)
|
||||||
Proceeds from sales of equity securities
|
$
|
586,496
|
$
|
695,039
|
$
|
567,085
|
||||||
Gross gains from sales
|
23,214
|
16,223
|
26,136
|
|||||||||
Gross losses from sales
|
(16,658
|
)
|
(28,784
|
)
|
(34,146
|
)
|
At December 31,
|
||||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Gross reserves at January 1
|
$
|
8,331,288
|
$
|
7,940,720
|
$
|
7,843,856
|
||||||
Less reinsurance recoverables
|
(4,199,791
|
)
|
(3,875,073
|
)
|
(3,702,782
|
)
|
||||||
Net reserves at January 1
|
4,131,497
|
4,065,647
|
4,141,074
|
|||||||||
Incurred related to:
|
||||||||||||
Current year
|
2,157,498
|
1,441,962
|
1,326,015
|
|||||||||
Prior years
|
(117,747
|
)
|
(91,682
|
)
|
(6,454
|
)
|
||||||
Total incurred losses and LAE
|
2,039,751
|
1,350,280
|
1,319,561
|
|||||||||
Paid related to:
|
||||||||||||
Current year
|
1,607,601
|
400,489
|
357,819
|
|||||||||
Prior years
|
957,933
|
892,207
|
946,337
|
|||||||||
Total paid losses and LAE
|
2,565,534
|
1,292,696
|
1,304,156
|
|||||||||
Foreign exchange/translation adjustment
|
10,046
|
8,266
|
(90,832
|
)
|
||||||||
Net reserves at December 31
|
3,615,760
|
4,131,497
|
4,065,647
|
|||||||||
Plus reinsurance recoverables
|
5,727,268
|
4,199,791
|
3,875,073
|
|||||||||
Gross reserves at December 31
|
$
|
9,343,028
|
$
|
8,331,288
|
$
|
7,940,720
|
Total of
|
||||||||||||||||||||||||||||||||
IBNR Liabilites
|
||||||||||||||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of reinsurance
|
Plus Expected
|
|||||||||||||||||||||||||||||||
Years Ended December 31,
|
Development
|
Cumulative
|
||||||||||||||||||||||||||||||
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
on Reported
|
Number of
|
|||||||||||||||||||||||||
Accident Year
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
Claims
|
Reported Claims
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||
2012
|
$
|
249,691
|
$
|
211,786
|
$
|
140,589
|
$
|
140,493
|
$
|
147,015
|
$
|
146,847
|
26,083
|
N/A
|
||||||||||||||||||
2013
|
117,346
|
184,186
|
181,955
|
187,213
|
179,452
|
50,471
|
N/A
|
|||||||||||||||||||||||||
2014
|
197,684
|
190,020
|
194,290
|
186,191
|
72,929
|
N/A
|
||||||||||||||||||||||||||
2015
|
155,977
|
178,512
|
173,668
|
90,945
|
N/A
|
|||||||||||||||||||||||||||
2016
|
171,585
|
173,645
|
119,179
|
N/A
|
||||||||||||||||||||||||||||
2017
|
149,929
|
27,637
|
N/A
|
|||||||||||||||||||||||||||||
$
|
1,009,732
|
|||||||||||||||||||||||||||||||
(Some amounts may not reconcile due to rounding.)
|
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||
Years Ended December 31,
|
||||||||||||||||||||||||
2013
|
2014
|
2015
|
2016
|
2017
|
||||||||||||||||||||
Accident Year
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
2012
|
$
|
2,547
|
$
|
11,856
|
$
|
25,239
|
$
|
55,234
|
$
|
77,028
|
$
|
92,652
|
||||||||||||
2013
|
4,798
|
15,952
|
43,754
|
74,503
|
94,790
|
|||||||||||||||||||
2014
|
7,213
|
22,023
|
48,193
|
75,107
|
||||||||||||||||||||
2015
|
7,957
|
21,967
|
46,849
|
|||||||||||||||||||||
2016
|
7,454
|
25,128
|
||||||||||||||||||||||
2017
|
102,715
|
|||||||||||||||||||||||
$
|
437,242
|
|||||||||||||||||||||||
All outstanding liabilities prior to 2012, net of reinsurance
|
763,940
|
|||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance
|
$
|
1,336,431
|
||||||||||||||||||||||
(Some amounts may not reconcile due to rounding.)
|
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited)
|
||||||||||||
Years
|
1
|
2
|
3
|
4
|
5
|
6
|
||||||
Casualty
|
13.1%
|
7.8%
|
13.4%
|
17.1%
|
12.9%
|
10.6%
|
Total of
|
||||||||||||||||||||||||||||||||
IBNR Liabilites
|
||||||||||||||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of reinsurance
|
Plus Expected
|
|||||||||||||||||||||||||||||||
Years Ended December 31,
|
Development
|
Cumulative
|
||||||||||||||||||||||||||||||
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
on Reported
|
Number of
|
|||||||||||||||||||||||||
Accident Year
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
Claims
|
Reported Claims
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||
2012
|
$
|
582,480
|
$
|
470,886
|
$
|
376,541
|
$
|
373,760
|
$
|
364,758
|
$
|
361,957
|
283
|
N/A
|
||||||||||||||||||
2013
|
282,446
|
304,558
|
280,289
|
249,573
|
243,423
|
467
|
N/A
|
|||||||||||||||||||||||||
2014
|
327,498
|
298,331
|
239,518
|
222,827
|
473
|
N/A
|
||||||||||||||||||||||||||
2015
|
325,255
|
260,247
|
236,234
|
9,036
|
N/A
|
|||||||||||||||||||||||||||
2016
|
424,195
|
372,282
|
54,584
|
N/A
|
||||||||||||||||||||||||||||
2017
|
845,311
|
24,650
|
N/A
|
|||||||||||||||||||||||||||||
$
|
2,282,034
|
|||||||||||||||||||||||||||||||
(Some amounts may not reconcile due to rounding.)
|
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||
Years Ended December 31,
|
||||||||||||||||||||||||
2013
|
2014
|
2015
|
2016
|
2017
|
||||||||||||||||||||
Accident Year
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
2012
|
$
|
130,188
|
$
|
229,715
|
$
|
287,323
|
$
|
312,109
|
$
|
324,606
|
$
|
338,646
|
||||||||||||
2013
|
120,406
|
166,467
|
200,350
|
214,930
|
223,670
|
|||||||||||||||||||
2014
|
110,418
|
164,817
|
191,034
|
204,407
|
||||||||||||||||||||
2015
|
113,685
|
167,662
|
199,094
|
|||||||||||||||||||||
2016
|
157,228
|
254,315
|
||||||||||||||||||||||
2017
|
638,087
|
|||||||||||||||||||||||
$
|
1,858,218
|
|||||||||||||||||||||||
All outstanding liabilities prior to 2012, net of reinsurance
|
50,232
|
|||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance
|
$
|
474,048
|
||||||||||||||||||||||
(Some amounts may not reconcile due to rounding.)
|
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited)
|
||||||||||||
Years
|
1
|
2
|
3
|
4
|
5
|
6
|
||||||
Property
|
55.7%
|
24.4%
|
14.0%
|
6.4%
|
3.5%
|
3.9%
|
Total of
|
||||||||||||||||||||||||||||||||
IBNR Liabilites
|
||||||||||||||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of reinsurance
|
Plus Expected
|
|||||||||||||||||||||||||||||||
Years Ended December 31,
|
Development
|
Cumulative
|
||||||||||||||||||||||||||||||
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
on Reported
|
Number of
|
|||||||||||||||||||||||||
Accident Year
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
Claims
|
Reported Claims
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||
2012
|
$
|
126,700
|
$
|
59,517
|
$
|
38,593
|
$
|
46,518
|
$
|
48,276
|
$
|
46,973
|
4,551
|
N/A
|
||||||||||||||||||
2013
|
62,527
|
43,751
|
45,647
|
57,830
|
52,270
|
10,765
|
N/A
|
|||||||||||||||||||||||||
2014
|
60,855
|
50,808
|
70,504
|
60,531
|
17,867
|
N/A
|
||||||||||||||||||||||||||
2015
|
55,651
|
75,411
|
65,128
|
27,749
|
N/A
|
|||||||||||||||||||||||||||
2016
|
72,919
|
71,357
|
42,937
|
N/A
|
||||||||||||||||||||||||||||
2017
|
58,592
|
38,157
|
N/A
|
|||||||||||||||||||||||||||||
$
|
354,851
|
|||||||||||||||||||||||||||||||
(Some amounts may not reconcile due to rounding.)
|
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||
Years Ended December 31,
|
||||||||||||||||||||||||
2013
|
2014
|
2015
|
2016
|
2017
|
||||||||||||||||||||
Accident Year
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
2012
|
$
|
7,412
|
$
|
11,327
|
$
|
17,537
|
$
|
21,147
|
$
|
24,530
|
$
|
29,603
|
||||||||||||
2013
|
6,153
|
14,608
|
18,949
|
22,878
|
25,506
|
|||||||||||||||||||
2014
|
8,712
|
15,831
|
22,258
|
26,193
|
||||||||||||||||||||
2015
|
8,920
|
19,123
|
26,281
|
|||||||||||||||||||||
2016
|
11,159
|
19,917
|
||||||||||||||||||||||
2017
|
14,610
|
|||||||||||||||||||||||
$
|
142,110
|
|||||||||||||||||||||||
All outstanding liabilities prior to 2012, net of reinsurance
|
81,593
|
|||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance
|
$
|
294,333
|
||||||||||||||||||||||
(Some amounts may not reconcile due to rounding.)
|
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited)
|
||||||||||||
Years
|
1
|
2
|
3
|
4
|
5
|
6
|
||||||
Casualty
|
16.1%
|
13.0%
|
10.7%
|
7.2%
|
6.1%
|
10.8%
|
Total of
|
||||||||||||||||||||||||||||||||
IBNR Liabilites
|
||||||||||||||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of reinsurance
|
Plus Expected
|
|||||||||||||||||||||||||||||||
Years Ended December 31,
|
Development
|
Cumulative
|
||||||||||||||||||||||||||||||
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
on Reported
|
Number of
|
|||||||||||||||||||||||||
Accident Year
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
Claims
|
Reported Claims
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||
2012
|
$
|
274,427
|
$
|
261,133
|
$
|
213,598
|
$
|
217,808
|
$
|
212,116
|
$
|
216,055
|
224
|
N/A
|
||||||||||||||||||
2013
|
182,787
|
181,737
|
175,106
|
163,018
|
166,604
|
614
|
N/A
|
|||||||||||||||||||||||||
2014
|
321,628
|
267,210
|
208,494
|
185,453
|
2,339
|
N/A
|
||||||||||||||||||||||||||
2015
|
266,445
|
173,301
|
179,097
|
976
|
N/A
|
|||||||||||||||||||||||||||
2016
|
200,573
|
223,771
|
48,657
|
N/A
|
||||||||||||||||||||||||||||
2017
|
520,595
|
72,861
|
N/A
|
|||||||||||||||||||||||||||||
$
|
1,491,576
|
|||||||||||||||||||||||||||||||
(Some amounts may not reconcile due to rounding.)
|
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||
Years Ended December 31,
|
||||||||||||||||||||||||
2013
|
2014
|
2015
|
2016
|
2017
|
||||||||||||||||||||
Accident Year
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
2012
|
$
|
86,473
|
$
|
148,124
|
$
|
182,018
|
$
|
193,189
|
$
|
197,721
|
$
|
203,445
|
||||||||||||
2013
|
50,452
|
105,132
|
127,050
|
142,290
|
149,041
|
|||||||||||||||||||
2014
|
61,652
|
112,207
|
143,786
|
159,213
|
||||||||||||||||||||
2015
|
59,487
|
110,526
|
143,624
|
|||||||||||||||||||||
2016
|
59,620
|
117,693
|
||||||||||||||||||||||
2017
|
330,759
|
|||||||||||||||||||||||
$
|
1,103,774
|
|||||||||||||||||||||||
All outstanding liabilities prior to 2012, net of reinsurance
|
55,445
|
|||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance
|
$
|
443,247
|
||||||||||||||||||||||
(Some amounts may not reconcile due to rounding.)
|
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited)
|
||||||||||||
Years
|
1
|
2
|
3
|
4
|
5
|
6
|
||||||
Property
|
43.5%
|
28.4%
|
16.1%
|
7.4%
|
2.9%
|
2.6%
|
Total of
|
||||||||||||||||||||||||||||||||
IBNR Liabilites
|
||||||||||||||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of reinsurance
|
Plus Expected
|
|||||||||||||||||||||||||||||||
Years Ended December 31,
|
Development
|
Cumulative
|
||||||||||||||||||||||||||||||
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
on Reported
|
Number of
|
|||||||||||||||||||||||||
Accident Year
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
Claims
|
Reported Claims
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||
2012
|
$
|
212,122
|
$
|
175,129
|
$
|
185,458
|
$
|
184,711
|
$
|
188,326
|
$
|
179,442
|
3,471
|
15,956
|
||||||||||||||||||
2013
|
256,284
|
228,328
|
230,837
|
224,793
|
182,930
|
6,722
|
20,755
|
|||||||||||||||||||||||||
2014
|
238,231
|
239,245
|
241,140
|
247,782
|
60,434
|
25,009
|
||||||||||||||||||||||||||
2015
|
259,451
|
259,843
|
263,492
|
100,270
|
26,472
|
|||||||||||||||||||||||||||
2016
|
355,423
|
343,273
|
211,847
|
30,384
|
||||||||||||||||||||||||||||
2017
|
268,321
|
(67,464
|
)
|
26,419
|
||||||||||||||||||||||||||||
$
|
1,485,239
|
|||||||||||||||||||||||||||||||
(Some amounts may not reconcile due to rounding.)
|
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||
Years Ended December 31,
|
||||||||||||||||||||||||
2013
|
2014
|
2015
|
2016
|
2017
|
||||||||||||||||||||
Accident Year
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
2012
|
$
|
15,692
|
$
|
55,242
|
$
|
84,429
|
$
|
116,651
|
$
|
133,314
|
$
|
147,053
|
||||||||||||
2013
|
17,124
|
68,607
|
101,675
|
129,790
|
149,819
|
|||||||||||||||||||
2014
|
20,382
|
71,940
|
114,236
|
143,953
|
||||||||||||||||||||
2015
|
19,974
|
68,033
|
117,096
|
|||||||||||||||||||||
2016
|
24,815
|
101,292
|
||||||||||||||||||||||
2017
|
286,370
|
|||||||||||||||||||||||
$
|
945,583
|
|||||||||||||||||||||||
All outstanding liabilities prior to 2012, net of reinsurance
|
330,473
|
|||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance
|
$
|
870,129
|
||||||||||||||||||||||
(Some amounts may not reconcile due to rounding.)
|
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited)
|
||||||||||||
Years
|
1
|
2
|
3
|
4
|
5
|
6
|
||||||
Casualty
|
25.9%
|
22.0%
|
17.6%
|
14.8%
|
10.1%
|
7.7%
|
Total of
|
||||||||||||||||||||||||||||||||
IBNR Liabilites
|
||||||||||||||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of reinsurance
|
Plus Expected
|
|||||||||||||||||||||||||||||||
Years Ended December 31,
|
Development
|
Cumulative
|
||||||||||||||||||||||||||||||
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
on Reported
|
Number of
|
|||||||||||||||||||||||||
Accident Year
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
Claims
|
Reported Claims
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||
2012
|
$
|
58,377
|
$
|
46,909
|
$
|
43,553
|
$
|
44,881
|
$
|
44,312
|
$
|
44,109
|
6
|
N/A
|
||||||||||||||||||
2013
|
63,888
|
57,016
|
52,211
|
52,909
|
52,593
|
80
|
N/A
|
|||||||||||||||||||||||||
2014
|
68,190
|
69,901
|
67,484
|
66,600
|
489
|
N/A
|
||||||||||||||||||||||||||
2015
|
80,597
|
76,065
|
75,661
|
(685
|
)
|
N/A
|
||||||||||||||||||||||||||
2016
|
151,956
|
157,316
|
(870
|
)
|
N/A
|
|||||||||||||||||||||||||||
2017
|
243,586
|
(8,456
|
)
|
N/A
|
||||||||||||||||||||||||||||
$
|
639,866
|
|||||||||||||||||||||||||||||||
(Some amounts may not reconcile due to rounding.)
|
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||
Years Ended December 31,
|
||||||||||||||||||||||||
2013
|
2014
|
2015
|
2016
|
2017
|
||||||||||||||||||||
Accident Year
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
2012
|
$
|
26,872
|
$
|
44,422
|
$
|
42,880
|
$
|
44,531
|
$
|
44,246
|
$
|
44,055
|
||||||||||||
2013
|
35,211
|
54,260
|
52,632
|
52,892
|
52,516
|
|||||||||||||||||||
2014
|
40,292
|
66,466
|
66,633
|
66,003
|
||||||||||||||||||||
2015
|
45,462
|
70,460
|
75,245
|
|||||||||||||||||||||
2016
|
72,264
|
153,245
|
||||||||||||||||||||||
2017
|
185,862
|
|||||||||||||||||||||||
$
|
576,927
|
|||||||||||||||||||||||
All outstanding liabilities prior to 2012, net of reinsurance
|
1,258
|
|||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance
|
$
|
64,198
|
||||||||||||||||||||||
(Some amounts may not reconcile due to rounding.)
|
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited)
|
||||||||||||
Years
|
1
|
2
|
3
|
4
|
5
|
6
|
||||||
Property
|
63.4%
|
42.6%
|
0.7%
|
0.8%
|
-0.7%
|
-0.4%
|
At December 31,
|
|||
(Dollars in thousands)
|
|||
Net outstanding liabilities
|
|||
U.S. Reinsurance Casualty
|
$
|
1,336,431
|
|
U.S. Reinsurance Property
|
474,048
|
||
International Casualty
|
294,333
|
||
International Property
|
443,247
|
||
Insurance Casualty
|
870,129
|
||
Insurance Property
|
64,198
|
||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance
|
3,482,386
|
||
Reinsurance recoverable on unpaid claims
|
|||
U.S. Reinsurance Casualty
|
1,069,721
|
||
U.S. Reinsurance Property
|
1,243,787
|
||
International Casualty
|
557,581
|
||
International Property
|
829,828
|
||
Insurance Casualty
|
1,705,312
|
||
Insurance Property
|
321,038
|
||
Total reinsurance recoverable on unpaid claims
|
5,727,267
|
||
Unallocated claims adjustment expenses
|
110,950
|
||
Other
|
22,425
|
||
133,375
|
|||
Total gross liability for unpaid claims and claim adjustment expense
|
$
|
9,343,028
|
|
(Some amounts may not reconcile due to rounding.)
|
At December 31,
|
||||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Gross basis:
|
||||||||||||
Beginning of period reserves
|
$
|
441,111
|
$
|
433,117
|
$
|
476,205
|
||||||
Incurred losses
|
90,009
|
73,336
|
40,000
|
|||||||||
Paid losses
|
(82,126
|
)
|
(65,342
|
)
|
(83,088
|
) | ||||||
End of period reserves
|
$
|
448,993
|
$
|
441,111
|
$
|
433,117
|
||||||
Net basis:
|
||||||||||||
Beginning of period reserves
|
$
|
274,409
|
$
|
276,540
|
$
|
304,286
|
||||||
Incurred losses
|
25,194
|
45,668
|
30,879
|
|||||||||
Paid losses
|
(30,451
|
)
|
(47,798
|
)
|
(58,625
|
) | ||||||
End of period reserves
|
$
|
269,153
|
$
|
274,409
|
$
|
276,540
|
||||||
(Some amounts may not reconcile due to rounding.)
|
Level 1: |
Inputs to the valuation methodology are observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in an active market;
|
Level 2: |
Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument;
|
Level 3: |
Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
|
·
|
U.S. Treasury securities and obligations of U.S. government agencies and corporations are primarily comprised of U.S. Treasury bonds and the fair value is based on observable market inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields;
|
·
|
Obligations of U.S. states and political subdivisions are comprised of state and municipal bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads;
|
·
|
Corporate securities are primarily comprised of U.S. corporate and public utility bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads;
|
·
|
Asset-backed and mortgage-backed securities fair values are based on observable inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields and cash flow models using observable inputs such as prepayment speeds, collateral performance and default spreads;
|
·
|
Foreign government securities are comprised of global non-U.S. sovereign bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source;
|
·
|
Foreign corporate securities are comprised of global non-U.S. corporate bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source.
|
Fair Value Measurement Using:
|
||||||||||||||||
Quoted Prices
|
||||||||||||||||
in Active
|
Significant
|
|||||||||||||||
Markets for
|
Other
|
Significant
|
||||||||||||||
Identical
|
Observable
|
Unobservable
|
||||||||||||||
Assets
|
Inputs
|
Inputs
|
||||||||||||||
(Dollars in thousands)
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
Assets:
|
||||||||||||||||
Fixed maturities, market value
|
||||||||||||||||
U.S. Treasury securities and obligations of
|
||||||||||||||||
U.S. government agencies and corporations
|
$
|
664,513
|
$
|
-
|
$
|
664,513
|
$
|
-
|
||||||||
Obligations of U.S. States and political subdivisions
|
585,469
|
-
|
585,469
|
-
|
||||||||||||
Corporate securities
|
2,024,209
|
-
|
1,865,988
|
158,221
|
||||||||||||
Asset-backed securities
|
138,024
|
-
|
138,024
|
-
|
||||||||||||
Mortgage-backed securities
|
||||||||||||||||
Commercial
|
51,751
|
-
|
51,751
|
-
|
||||||||||||
Agency residential
|
113,288
|
-
|
113,288
|
-
|
||||||||||||
Non-agency residential
|
58
|
-
|
58
|
-
|
||||||||||||
Foreign government securities
|
523,620
|
-
|
523,620
|
-
|
||||||||||||
Foreign corporate securities
|
870,989
|
-
|
864,037
|
6,952
|
||||||||||||
Total fixed maturities, market value
|
4,971,921
|
-
|
4,806,748
|
165,173
|
||||||||||||
Equity securities, fair value
|
822,375
|
800,542
|
21,833
|
-
|
||||||||||||
Other invested assets, fair value
|
1,807,473
|
-
|
-
|
1,807,473
|
Fair Value Measurement Using:
|
||||||||||||||||
Quoted Prices
|
||||||||||||||||
in Active
|
Significant
|
|||||||||||||||
Markets for
|
Other
|
Significant
|
||||||||||||||
Identical
|
Observable
|
Unobservable
|
||||||||||||||
Assets
|
Inputs
|
Inputs
|
||||||||||||||
(Dollars in thousands)
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
Assets:
|
||||||||||||||||
Fixed maturities, market value
|
||||||||||||||||
U.S. Treasury securities and obligations of
|
||||||||||||||||
U.S. government agencies and corporations
|
$
|
691,080
|
$
|
-
|
$
|
691,080
|
$
|
-
|
||||||||
Obligations of U.S. States and political subdivisions
|
729,984
|
-
|
729,984
|
-
|
||||||||||||
Corporate securities
|
2,154,203
|
-
|
2,089,006
|
65,197
|
||||||||||||
Asset-backed securities
|
137,027
|
-
|
137,027
|
-
|
||||||||||||
Mortgage-backed securities
|
||||||||||||||||
Commercial
|
75,493
|
-
|
75,493
|
-
|
||||||||||||
Agency residential
|
715,144
|
-
|
715,144
|
-
|
||||||||||||
Non-agency residential
|
88
|
-
|
88
|
-
|
||||||||||||
Foreign government securities
|
507,277
|
-
|
507,277
|
-
|
||||||||||||
Foreign corporate securities
|
960,200
|
-
|
957,662
|
2,538
|
||||||||||||
Total fixed maturities, market value
|
5,970,496
|
-
|
5,902,761
|
67,735
|
||||||||||||
Equity securities, fair value
|
887,800
|
827,237
|
60,563
|
-
|
||||||||||||
Other invested assets, fair value
|
1,766,626
|
-
|
-
|
1,766,626
|
Corporate
|
Foreign
|
Corporate
|
Foreign
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
Securities
|
Corporate
|
Total
|
Securities
|
CMBS
|
Corporate
|
Total
|
|||||||||||||||||||||
Beginning balance
|
$
|
65,197
|
$
|
2,538
|
$
|
67,735
|
$
|
3,933
|
$
|
-
|
$
|
1,593
|
$
|
5,526
|
||||||||||||||
Total gains or (losses) (realized/unrealized)
|
||||||||||||||||||||||||||||
Included in earnings
|
1,654
|
356
|
2,010
|
100
|
-
|
(1,193
|
)
|
(1,093
|
)
|
|||||||||||||||||||
Included in other comprehensive income (loss)
|
(991
|
)
|
-
|
(991
|
)
|
41
|
15
|
-
|
56
|
|||||||||||||||||||
Purchases, issuances and settlements
|
92,361
|
4,058
|
96,419
|
63,054
|
(40
|
)
|
2,138
|
65,152
|
||||||||||||||||||||
Transfers in and/or (out) of Level 3
|
-
|
-
|
-
|
(1,931
|
)
|
25
|
-
|
(1,906
|
)
|
|||||||||||||||||||
Ending balance
|
$
|
158,221
|
$
|
6,952
|
$
|
165,173
|
$
|
65,197
|
$
|
-
|
$
|
2,538
|
$
|
67,735
|
||||||||||||||
The amount of total gains or losses for the period included
|
||||||||||||||||||||||||||||
in earnings (or changes in net assets) attributable to the
|
||||||||||||||||||||||||||||
change in unrealized gains or losses relating to assets
|
||||||||||||||||||||||||||||
still held at the reporting date
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||
(Some amounts may not reconcile due to rounding.)
|
Years Ended December 31,
|
||||||||
(Dollars in thousands)
|
2017
|
2016
|
||||||
Other invested assets, fair value:
|
||||||||
Beginning balance
|
$
|
1,766,626
|
$
|
1,773,214
|
||||
Total gains or (losses) (realized/unrealized)
|
||||||||
Included in earnings
|
40,846
|
(6,588
|
)
|
|||||
Included in other comprehensive income (loss)
|
-
|
-
|
||||||
Purchases, issuances and settlements
|
-
|
-
|
||||||
Transfers in and/or (out) of Level 3
|
-
|
-
|
||||||
Ending balance
|
$
|
1,807,473
|
$
|
1,766,626
|
||||
The amount of total gains or losses for the period included in earnings
|
||||||||
(or changes in net assets) attributable to the change in unrealized
|
||||||||
gains or losses relating to assets still held at the reporting date
|
$
|
-
|
$
|
-
|
||||
(Some amounts may not reconcile due to rounding.)
|
Consolidated Balance
|
Consolidated Balance
|
|||||||||||||||||||||
(Dollars in thousands)
|
Date Issued
|
Date Due
|
Principal Amounts
|
Sheet Amount
|
Market Value
|
Sheet Amount
|
Market Value
|
|||||||||||||||
4.868% Senior notes
|
06/05/2014
|
06/01/2044
|
400,000
|
$
|
396,834
|
$
|
420,340
|
$
|
396,714
|
$
|
383,612
|
Years Ended December 31,
|
||||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Interest expense incurred
|
$
|
19,472
|
$
|
19,472
|
$
|
19,472
|
Maturity Date
|
|||||||||||||||||||||||||
Original
|
Consolidated Balance
|
Consolidated Balance
|
|||||||||||||||||||||||
(Dollars in thousands)
|
Date Issued
|
Principal Amount
|
Scheduled
|
Final
|
Sheet Amount
|
Market Value
|
Sheet Amount
|
Market Value
|
|||||||||||||||||
6.6% Long term subordinated notes
|
04/26/2007
|
$
|
400,000
|
05/15/2037
|
05/01/2067
|
$
|
236,561
|
$
|
233,072
|
$
|
236,462
|
$
|
204,636
|
Years Ended December 31,
|
||||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Interest expense incurred
|
$
|
11,498
|
$
|
15,749
|
$
|
15,749
|
(Dollars in thousands)
|
|||
2018
|
$
|
15,740
|
|
2019
|
16,026
|
||
2020
|
15,569
|
||
2021
|
6,718
|
||
2022
|
6,335
|
||
Thereafter
|
14,628
|
||
Net commitments
|
$
|
75,016
|
|
(Some amounts may not reconcile due to rounding.)
|
Years Ended December 31,
|
||||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Current tax expense (benefit):
|
||||||||||||
U.S.
|
$
|
(123,083
|
)
|
$
|
16,004
|
$
|
55,354
|
|||||
Foreign
|
221
|
12,682
|
30,373
|
|||||||||
Total current tax expense (benefit)
|
(122,862
|
)
|
28,686
|
85,727
|
||||||||
Total deferred U.S. tax expense (benefit)
|
(78,318
|
)
|
68,661
|
109,169
|
||||||||
Total income tax expense (benefit)
|
$
|
(201,180
|
)
|
$
|
97,347
|
$
|
194,896
|
Years Ended December 31,
|
||||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Expected income tax provision at the U.S. statutory tax rate
|
$
|
(43,044
|
)
|
$
|
139,646
|
$
|
212,548
|
|||||
Increase (reduction) in taxes resulting from:
|
||||||||||||
Tax exempt income
|
(8,488
|
)
|
(9,078
|
)
|
(10,004
|
)
|
||||||
Dividend received deduction
|
(4,063
|
)
|
(4,335
|
)
|
(4,851
|
)
|
||||||
Proration
|
1,760
|
1,931
|
2,160
|
|||||||||
Creditable foreign premium tax
|
(7,515
|
)
|
(6,134
|
)
|
(7,492
|
)
|
||||||
Tax audit settlement
|
(11,565
|
)
|
(19,204
|
)
|
-
|
|||||||
Share based compensation tax benefits formerly in APIC
|
(3,308
|
)
|
-
|
-
|
||||||||
Impact of U.S. tax reform
|
(123,143
|
)
|
-
|
-
|
||||||||
Other
|
(1,814
|
)
|
(5,479
|
)
|
2,535
|
|||||||
Total income tax provision
|
$
|
(201,180
|
)
|
$
|
97,347
|
$
|
194,896
|
|||||
(Some amounts may not reconcile due to rounding.)
|
At December 31,
|
||||||||
(Dollars in thousands)
|
2017
|
2016
|
||||||
Deferred tax assets:
|
||||||||
Unearned premium reserve
|
$
|
55,034
|
$
|
37,573
|
||||
Loss reserve
|
52,649
|
104,547
|
||||||
Net unrecognized losses on benefit plans
|
19,120
|
35,271
|
||||||
Foreign tax credits
|
15,913
|
-
|
||||||
Benefit plan liability
|
10,417
|
14,576
|
||||||
Uncollectible reinsurance reserve
|
3,320
|
5,534
|
||||||
Deferred expenses
|
1,759
|
2,884
|
||||||
Investment impairments
|
1,144
|
3,093
|
||||||
Unrealized foreign currency losses
|
547
|
28,111
|
||||||
Other assets
|
8,633
|
10,845
|
||||||
Total deferred tax assets
|
168,536
|
242,434
|
||||||
Deferred tax liabilities:
|
||||||||
Net fair value income
|
252,349
|
398,270
|
||||||
Deferred acquisition costs
|
64,997
|
26,652
|
||||||
Net unrealized investment gains
|
12,819
|
20,626
|
||||||
Gain on tender of debt
|
3,287
|
10,958
|
||||||
Partnership Investments
|
2,019
|
11,269
|
||||||
Bond market discount
|
1,243
|
1,092
|
||||||
Other liabilities
|
840
|
2,008
|
||||||
Total deferred tax liabilities
|
337,554
|
470,875
|
||||||
Net deferred tax assets/(liabilities)
|
$
|
(169,018
|
)
|
$
|
(228,441
|
) | ||
(Some amounts may not reconcile due to rounding.)
|
Years Ended December 31,
|
||||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Written premiums:
|
||||||||||||
Direct
|
$
|
1,873,115
|
$
|
1,699,204
|
$
|
1,511,217
|
||||||
Assumed
|
3,915,374
|
3,364,524
|
3,484,414
|
|||||||||
Ceded
|
(3,064,645
|
)
|
(3,015,606
|
)
|
(2,902,348
|
)
|
||||||
Net written premiums
|
$
|
2,723,844
|
$
|
2,048,122
|
$
|
2,093,283
|
||||||
Premiums earned:
|
||||||||||||
Direct
|
$
|
1,655,023
|
$
|
1,608,783
|
$
|
1,439,795
|
||||||
Assumed
|
3,842,836
|
3,492,598
|
3,637,484
|
|||||||||
Ceded
|
(3,548,264
|
)
|
(3,007,332
|
)
|
(2,933,519
|
)
|
||||||
Net premiums earned
|
$
|
1,949,595
|
$
|
2,094,049
|
$
|
2,143,760
|
||||||
Incurred losses and LAE:
|
||||||||||||
Direct
|
$
|
1,196,323
|
$
|
1,415,933
|
$
|
1,235,012
|
||||||
Assumed
|
3,108,753
|
1,674,342
|
1,728,661
|
|||||||||
Ceded
|
(2,265,325
|
)
|
(1,739,995
|
)
|
(1,644,112
|
)
|
||||||
Net incurred losses and LAE
|
$
|
2,039,751
|
$
|
1,350,280
|
$
|
1,319,561
|
(Dollars in thousands)
|
|||||||||||||
Percent
|
Assuming
|
Single
|
Aggregate
|
||||||||||
Coverage Period
|
Ceding Company
|
Ceded
|
Company
|
Type of Business
|
Occurrence Limit
|
Limit
|
|||||||
01/01/2010-12/31/2010
|
Everest Re
|
44.0%
|
Bermuda Re
|
property / casualty business
|
150,000
|
325,000
|
|||||||
01/01/2011-12/31/2011
|
Everest Re
|
50.0%
|
Bermuda Re
|
property / casualty business
|
150,000
|
300,000
|
|||||||
01/01/2012-12/31/2014
|
Everest Re
|
50.0%
|
Bermuda Re
|
property / casualty business
|
100,000
|
200,000
|
|||||||
01/01/2015-12/31/2016
|
Everest Re
|
50.0%
|
Bermuda Re
|
property / casualty business
|
162,500
|
325,000
|
|||||||
01/01/2017-12/31/2017
|
Everest Re
|
60.0%
|
Bermuda Re
|
property / casualty business
|
219,000
|
438,000
|
|||||||
01/01/2010-12/31/2010
|
Everest Re- Canadian Branch
|
60.0%
|
Bermuda Re
|
property business
|
350,000
|
(1)
|
-
|
||||||
01/01/2011-12/31/2011
|
Everest Re- Canadian Branch
|
60.0%
|
Bermuda Re
|
property business
|
350,000
|
(1)
|
-
|
||||||
01/01/2012-12/31/2012
|
Everest Re- Canadian Branch
|
75.0%
|
Bermuda Re
|
property / casualty business
|
206,250
|
(1)
|
412,500
|
||||||
01/01/2013-12/31/2013
|
Everest Re- Canadian Branch
|
75.0%
|
Bermuda Re
|
property / casualty business
|
150,000
|
(1)
|
412,500
|
||||||
01/01/2014-12/31/2017
|
Everest Re- Canadian Branch
|
75.0%
|
Bermuda Re
|
property / casualty business
|
262,500
|
(1)
|
412,500
|
||||||
01/01/2012-12/31/2017
|
Everest Canada
|
80.0%
|
Everest Re- Canadian Branch
|
property business
|
-
|
-
|
|||||||
(1) Amounts shown are Canadian dollars.
|
(Dollars in thousands)
|
||||||||||
Effective
|
Transferring
|
Assuming
|
% of Business or
|
Covered Period
|
||||||
Date
|
Company
|
Company
|
Amount of Transfer
|
of Transfer
|
||||||
09/19/2000
|
Mt. McKinley
|
Bermuda Re
|
100
|
%
|
All years
|
|||||
10/01/2001
|
Everest Re (Belgium Branch)
|
Bermuda Re
|
100
|
%
|
All years
|
|||||
10/01/2008
|
Everest Re
|
Bermuda Re
|
$
|
747,022
|
01/01/2002-12/31/2007
|
|||||
12/31/2017
|
Everest Re
|
Bermuda Re
|
$
|
970,000
|
All years
|
Bermuda Re
|
Years Ended December 31,
|
|||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Ceded written premiums
|
$
|
2,219,352
|
$
|
2,324,314
|
$
|
2,283,815
|
||||||
Ceded earned premiums
|
2,796,939
|
2,353,801
|
2,316,096
|
|||||||||
Ceded losses and LAE (a)
|
1,687,659
|
1,307,722
|
1,293,997
|
Everest International
|
Years Ended December 31,
|
|||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Ceded written premiums
|
$
|
10
|
$
|
98
|
$
|
395
|
||||||
Ceded earned premiums
|
44
|
110
|
522
|
|||||||||
Ceded losses and LAE
|
(990
|
)
|
3,467
|
673
|
Everest Canada
|
Years Ended December 31,
|
|||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Assumed written premiums
|
$
|
25,871
|
$
|
53,653
|
$
|
39,819
|
||||||
Assumed earned premiums
|
54,558
|
49,156
|
35,988
|
|||||||||
Assumed losses and LAE
|
29,389
|
38,568
|
20,345
|
Lloyd's Syndicate 2786
|
Years Ended December 31,
|
|||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Assumed written premiums
|
$
|
35,607
|
$
|
18,994
|
$
|
-
|
||||||
Assumed earned premiums
|
33,590
|
5,038
|
-
|
|||||||||
Assumed losses and LAE
|
17,688
|
4,938
|
-
|
Mt. Logan Re Segregated Accounts
|
Years Ended December 31,
|
|||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Ceded written premiums
|
$
|
192,928
|
$
|
160,091
|
$
|
209,162
|
||||||
Ceded earned premiums
|
192,573
|
155,010
|
201,416
|
|||||||||
Ceded losses and LAE
|
283,511
|
38,739
|
40,753
|
|||||||||
Assumed written premiums
|
11,984
|
14,563
|
15,421
|
|||||||||
Assumed earned premiums
|
11,984
|
14,563
|
15,421
|
|||||||||
Assumed losses and LAE
|
-
|
-
|
-
|
Years Ended December 31,
|
||||||||||||||||||||||||||||||||||||
2016
|
2015
|
|||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Before Tax
|
Tax Effect
|
Net of Tax
|
Before Tax
|
Tax Effect
|
Net of Tax
|
Before Tax
|
Tax Effect
|
Net of Tax
|
|||||||||||||||||||||||||||
Unrealized appreciation (depreciation) ("URA(D)") on securities - temporary
|
$
|
(11,672
|
)
|
$
|
4,085
|
$
|
(7,587
|
)
|
$
|
1,302
|
$
|
(512
|
)
|
$
|
790
|
$
|
(43,777
|
)
|
$
|
14,337
|
$
|
(29,440
|
)
|
|||||||||||||
URA(D) on securities - OTTI
|
(4,537
|
)
|
1,588
|
(2,949
|
)
|
5,113
|
(1,789
|
)
|
3,324
|
9,666
|
(3,383
|
)
|
6,283
|
|||||||||||||||||||||||
Reclassification of net realized losses (gains) included in net income (loss)
|
3,543
|
(1,240
|
)
|
2,303
|
32,642
|
(11,369
|
)
|
21,273
|
(2,772
|
)
|
1,955
|
(817
|
)
|
|||||||||||||||||||||||
Foreign currency translation adjustments
|
57,564
|
(20,137
|
)
|
37,427
|
4,388
|
(1,539
|
)
|
2,849
|
(83,966
|
)
|
29,388
|
(54,578
|
)
|
|||||||||||||||||||||||
Benefit plan actuarial net gain (loss)
|
1,300
|
(273
|
)
|
1,027
|
(11,520
|
)
|
4,032
|
(7,488
|
)
|
8,740
|
(3,059
|
)
|
5,681
|
|||||||||||||||||||||||
Reclassification of amortization of net gain (loss) included in net income (loss)
|
8,426
|
(2,949
|
)
|
5,477
|
7,805
|
(2,732
|
)
|
5,073
|
9,563
|
(3,347
|
)
|
6,216
|
||||||||||||||||||||||||
Total other comprehensive income (loss)
|
$
|
54,624
|
$
|
(18,926
|
)
|
$
|
35,698
|
$
|
39,730
|
$
|
(13,909
|
)
|
$
|
25,821
|
$
|
(102,546
|
)
|
$
|
35,891
|
$
|
(66,655
|
)
|
||||||||||||||
(Some amounts may not reconcile due to rounding)
|
Years Ended December 31,
|
Affected line item within the statements of
|
|||||||||
AOCI component
|
2017
|
2016
|
operations and comprehensive income (loss)
|
|||||||
(Dollars in thousands)
|
||||||||||
URA(D) on securities
|
$
|
3,543
|
$
|
32,642
|
Other net realized capital gains (losses)
|
|||||
(1,240
|
)
|
(11,369
|
)
|
Income tax expense (benefit)
|
||||||
$
|
2,303
|
$
|
21,273
|
Net income (loss)
|
||||||
Benefit plan net gain (loss)
|
$
|
8,426
|
$
|
7,805
|
Other underwriting expenses
|
|||||
(2,949
|
)
|
(2,732
|
)
|
Income tax expense (benefit)
|
||||||
$
|
5,477
|
$
|
5,073
|
Net income (loss)
|
||||||
(Some amounts may not reconcile due to rounding)
|
Years Ended December 31,
|
||||||||
(Dollars in thousands)
|
2017
|
2016
|
||||||
Beginning balance of URA (D) on securities
|
$
|
39,041
|
$
|
13,654
|
||||
Current period change in URA (D) of investments - temporary
|
(5,284
|
)
|
22,063
|
|||||
Current period change in URA (D) of investments - non-credit OTTI
|
(2,949
|
)
|
3,324
|
|||||
Reclass due to early adoption of ASU 2018-02
|
6,634
|
-
|
||||||
Ending balance of URA (D) on securities
|
37,442
|
39,041
|
||||||
Beginning balance of foreign currency translation adjustments
|
(9,852
|
)
|
(12,701
|
)
|
||||
Current period change in foreign currency translation adjustments
|
37,427
|
2,849
|
||||||
Reclass due to early adoption of ASU 2018-02
|
5,970
|
-
|
||||||
Ending balance of foreign currency translation adjustments
|
33,545
|
(9,852
|
)
|
|||||
Beginning balance of benefit plan net gain (loss)
|
(65,504
|
)
|
(63,089
|
)
|
||||
Current period change in benefit plan net gain (loss)
|
6,504
|
(2,415
|
)
|
|||||
Reclass due to early adoption of ASU 2018-02
|
(12,929
|
)
|
-
|
|||||
Ending balance of benefit plan net gain (loss)
|
(71,929
|
)
|
(65,504
|
)
|
||||
Ending balance of accumulated other comprehensive income (loss)
|
$
|
(942
|
)
|
$
|
(36,315
|
)
|
Years Ended December 31,
|
||||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Company contributions
|
$
|
10,534
|
$
|
30,821
|
$
|
5,949
|
Years Ended December 31,
|
||||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Pension expense
|
$
|
16,299
|
$
|
17,188
|
$
|
22,682
|
Years Ended December 31,
|
||||||||
(Dollars in thousands)
|
2017
|
2016
|
||||||
Change in projected benefit obligation:
|
||||||||
Benefit obligation at beginning of year
|
$
|
281,853
|
$
|
254,022
|
||||
Service cost
|
10,949
|
10,924
|
||||||
Interest cost
|
10,034
|
9,485
|
||||||
Actuarial (gain)/loss
|
24,679
|
12,155
|
||||||
Curtailment
|
(6,209
|
)
|
-
|
|||||
Benefits paid
|
(5,104
|
)
|
(4,733
|
)
|
||||
Projected benefit obligation at end of year
|
316,202
|
281,853
|
||||||
Change in plan assets:
|
||||||||
Fair value of plan assets at beginning of year
|
171,506
|
135,087
|
||||||
Actual return on plan assets
|
33,331
|
10,331
|
||||||
Actual contributions during the year
|
10,534
|
30,821
|
||||||
Benefits paid
|
(5,104
|
)
|
(4,733
|
)
|
||||
Fair value of plan assets at end of year
|
210,267
|
171,506
|
||||||
Funded status at end of year
|
$
|
(105,935
|
)
|
$
|
(110,348
|
)
|
||
(Some amounts may not reconcile due to rounding.)
|
At December 31,
|
||||||||
(Dollars in thousands)
|
2017
|
2016
|
||||||
Other assets (due beyond one year)
|
$
|
-
|
$
|
-
|
||||
Other liabilities (due within one year)
|
(3,871
|
)
|
(2,371
|
)
|
||||
Other liabilities (due beyond one year)
|
(102,065
|
)
|
(107,977
|
)
|
||||
Net amount recognized in the consolidated balance sheets
|
$
|
(105,935
|
)
|
$
|
(110,348
|
)
|
At December 31,
|
||||||||
(Dollars in thousands)
|
2017
|
2016
|
||||||
Prior service cost
|
$
|
-
|
$
|
-
|
||||
Accumulated income (loss)
|
(86,788
|
)
|
(96,965
|
)
|
||||
Accumulated other comprehensive income (loss)
|
$
|
(86,788
|
)
|
$
|
(96,965
|
)
|
||
(Some amounts may not reconcile due to rounding.)
|
Years Ended December 31,
|
||||||||
(Dollars in thousands)
|
2017
|
2016
|
||||||
Other comprehensive income (loss) at December 31, prior year
|
$
|
(96,965
|
)
|
$
|
(91,920
|
)
|
||
Net gain (loss) arising during period
|
(4,398
|
)
|
(12,982
|
)
|
||||
Recognition of amortizations in net periodic benefit cost:
|
||||||||
Prior service cost
|
-
|
-
|
||||||
Actuarial loss
|
8,366
|
7,937
|
||||||
Curtailment loss recognized
|
6,209
|
-
|
||||||
Other comprehensive income (loss) at December 31, current year
|
$
|
(86,788
|
)
|
$
|
(96,965
|
)
|
||
(Some amounts may not reconcile due to rounding.)
|
Years Ended December 31,
|
||||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Service cost
|
10,949
|
$
|
10,924
|
$
|
12,511
|
|||||||
Interest cost
|
10,034
|
9,485
|
10,759
|
|||||||||
Expected return on assets
|
(13,050
|
)
|
(11,158
|
)
|
(11,620
|
)
|
||||||
Amortization of actuarial loss from earlier periods
|
8,366
|
7,937
|
9,243
|
|||||||||
Amortization of unrecognized prior service cost
|
-
|
-
|
21
|
|||||||||
Settlement
|
-
|
-
|
1,768
|
|||||||||
Net periodic benefit cost
|
$
|
16,299
|
$
|
17,188
|
$
|
22,682
|
||||||
Other changes recognized in other comprehensive income (loss):
|
||||||||||||
Other comprehensive income (loss) attributable to change from prior year
|
(10,177
|
)
|
5,045
|
|||||||||
Total recognized in net periodic benefit cost and other
|
||||||||||||
comprehensive income (loss)
|
$
|
6,122
|
$
|
22,233
|
||||||||
(Some amounts may not reconcile due to rounding.)
|
At December 31,
|
||||||||
(Dollars in thousands)
|
2017
|
2016
|
||||||
Qualified Plan
|
$
|
245,430
|
$
|
211,720
|
||||
Non-qualified Plan
|
24,482
|
21,123
|
||||||
Total
|
$
|
269,912
|
$
|
232,843
|
||||
(Some amounts may not reconcile due to rounding.)
|
At December 31,
|
||||||||
(Dollars in thousands)
|
2017
|
2016
|
||||||
Qualified Plan
|
||||||||
Projected benefit obligation
|
$
|
291,720
|
$
|
254,320
|
||||
Fair value of plan assets
|
210,267
|
171,506
|
||||||
Non-qualified Plan
|
||||||||
Projected benefit obligation
|
$
|
24,482
|
$
|
27,534
|
||||
Fair value of plan assets
|
-
|
-
|
At December 31,
|
||||||||
(Dollars in thousands)
|
2017
|
2016
|
||||||
Qualified Plan
|
||||||||
Accumulated benefit obligation
|
$
|
245,430
|
$
|
211,720
|
||||
Fair value of plan assets
|
210,267
|
171,506
|
||||||
Non-qualified Plan
|
||||||||
Accumulated benefit obligation
|
$
|
24,482
|
$
|
21,123
|
||||
Fair value of plan assets
|
-
|
-
|
||||||
(N/A, not applicable)
|
(Dollars in thousands)
|
|||
2018
|
$
|
10,205
|
|
2019
|
10,288
|
||
2020
|
12,452
|
||
2021
|
12,331
|
||
2022
|
12,132
|
||
Next 5 years
|
74,239
|
Fair Value Measurement Using:
|
||||||||||||||||
Quoted Prices
|
||||||||||||||||
in Active
|
Significant
|
|||||||||||||||
Markets for
|
Other
|
Significant
|
||||||||||||||
Identical
|
Observable
|
Unobservable
|
||||||||||||||
Assets
|
Inputs
|
Inputs
|
||||||||||||||
(Dollars in thousands)
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
Assets:
|
||||||||||||||||
Short-term investments, which approximates fair value (a)
|
$
|
1,031
|
$
|
1,031
|
$
|
-
|
$
|
-
|
||||||||
Mutual funds, fair value
|
||||||||||||||||
Fixed income (b)
|
23,361
|
23,361
|
-
|
-
|
||||||||||||
Equities (c)
|
159,578
|
159,578
|
-
|
-
|
||||||||||||
Total
|
$
|
183,970
|
$
|
183,970
|
$
|
-
|
$
|
-
|
||||||||
(Some amounts may not reconcile due to rounding.)
|
(a)
|
This category includes high quality, short-term money market instruments, which are issued and payable in U.S. dollars.
|
(b)
|
This category includes fixed income funds, which invest in investment grade securities of corporations, governments and government agencies with approximately 50% in U.S. securities and 50% in international securities.
|
(c)
|
This category includes funds, which invest in small, mid and multi-cap equity securities including common stocks, securities convertible into common stock and securities with common stock characteristics, such as rights and warrants, with approximately 90% in U.S. equities and 10% in international equities.
|
Fair Value Measurement Using:
|
||||||||||||||||
Quoted Prices
|
||||||||||||||||
in Active
|
Significant
|
|||||||||||||||
Markets for
|
Other
|
Significant
|
||||||||||||||
Identical
|
Observable
|
Unobservable
|
||||||||||||||
Assets
|
Inputs
|
Inputs
|
||||||||||||||
(Dollars in thousands)
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
Assets:
|
||||||||||||||||
Short-term investments, which approximates fair value (a)
|
$
|
3,665
|
$
|
3,665
|
$
|
-
|
$
|
-
|
||||||||
Mutual funds, fair value
|
||||||||||||||||
Fixed income (b)
|
21,445
|
21,445
|
-
|
-
|
||||||||||||
Equities (c)
|
122,213
|
122,213
|
-
|
-
|
||||||||||||
Total
|
$
|
147,323
|
$
|
147,323
|
$
|
-
|
$
|
-
|
||||||||
(Some amounts may not reconcile due to rounding.)
|
(a)
|
This category includes high quality, short-term money market instruments, which are issued and payable in U.S. dollars.
|
(b)
|
This category includes fixed income funds, which invest in investment grade securities of corporations, governments and government agencies with approximately 50% in U.S. securities and 50% in international securities.
|
(c)
|
This category includes funds, which invest in small, mid and multi-cap equity securities including common stocks, securities convertible into common stock and securities with common stock characteristics, such as rights and warrants, with approximately 90% in U.S. equities and 10% in international equities.
|
Years Ended December 31,
|
||||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Incurred expenses
|
$
|
7,167
|
$
|
6,058
|
$
|
5,468
|
Years Ended December 31,
|
||||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Incurred expenses
|
$
|
514
|
$
|
494
|
$
|
447
|
Percentage
|
Percentage
|
|||||||
Point Increase
|
Point Decrease
|
|||||||
(Dollars in thousands)
|
($ Impact)
|
($ Impact)
|
||||||
a. Effect on total service and interest cost components
|
$
|
614
|
$
|
(476
|
)
|
|||
b. Effect on accumulated post-retirement benefit obligation
|
7,313
|
(5,674
|
)
|
Years Ended December 31,
|
||||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Post-retirement benefit expenses
|
$
|
2,814
|
$
|
2,293
|
$
|
3,280
|
At December 31,
|
||||||||
(Dollars in thousands)
|
2017
|
2016
|
||||||
Change in projected benefit obligation:
|
||||||||
Benefit obligation at beginning of year
|
$
|
32,071
|
$
|
31,687
|
||||
Service cost
|
1,570
|
1,418
|
||||||
Interest cost
|
1,184
|
1,007
|
||||||
Amendments
|
(3,526
|
)
|
(794
|
)
|
||||
Actuarial (gain)/loss
|
4,038
|
(668
|
)
|
|||||
Benefits paid
|
(619
|
)
|
(579
|
)
|
||||
Benefit obligation at end of year
|
34,717
|
32,071
|
||||||
Change in plan assets:
|
||||||||
Fair value of plan assets at beginning of year
|
-
|
-
|
||||||
Employer contributions
|
619
|
579
|
||||||
Benefits paid
|
(619
|
)
|
(579
|
)
|
||||
Fair value of plan assets at end of year
|
-
|
-
|
||||||
Funded status at end of year
|
$
|
(34,717
|
)
|
$
|
(32,071
|
)
|
At December 31,
|
||||||||
(Dollars in thousands)
|
2017
|
2016
|
||||||
Other liabilities (due within one year)
|
$
|
(655
|
)
|
$
|
(614
|
)
|
||
Other liabilities (due beyond one year)
|
(34,062
|
)
|
(31,457
|
)
|
||||
Net amount recognized in the consolidated balance sheets
|
$
|
(34,717
|
)
|
$
|
(32,071
|
)
|
||
(Some amounts may not reconcile due to rounding.)
|
At December 31,
|
||||||||
(Dollars in thousands)
|
2017
|
2016
|
||||||
Accumulated income (loss)
|
$
|
(8,317
|
)
|
$
|
(4,471
|
)
|
||
Accumulated prior service credit (cost)
|
4,057
|
$
|
662
|
|||||
Accumulated other comprehensive income (loss)
|
$
|
(4,260
|
)
|
$
|
(3,809
|
)
|
Years Ended December 31,
|
||||||||
(Dollars in thousands)
|
2017
|
2016
|
||||||
Other comprehensive income (loss) at December 31, prior year
|
$
|
(3,809
|
)
|
$
|
(5,139
|
)
|
||
Net gain (loss) arising during period
|
(4,038
|
)
|
668
|
|||||
Prior Service credit (cost) arising during period
|
3,526
|
794
|
||||||
Recognition of amortizations in net periodic benefit cost:
|
||||||||
Actuarial loss (gain)
|
192
|
-
|
||||||
Prior service cost
|
(131
|
)
|
(132
|
)
|
||||
Other comprehensive income (loss) at December 31, current year
|
$
|
(4,260
|
)
|
$
|
(3,809
|
)
|
Years Ended December 31,
|
||||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Service cost
|
$
|
1,570
|
$
|
1,418
|
$
|
1,794
|
||||||
Interest cost
|
1,184
|
1,007
|
1,187
|
|||||||||
Net loss recognition
|
(131
|
)
|
(132
|
)
|
300
|
|||||||
Net gain recognition
|
192
|
-
|
-
|
|||||||||
Net periodic cost
|
$
|
2,814
|
$
|
2,293
|
$
|
3,280
|
||||||
Other changes recognized in other comprehensive income (loss):
|
||||||||||||
Other comprehensive gain (loss) attributable to change from prior year
|
451
|
(1,330
|
)
|
|||||||||
Total recognized in net periodic benefit cost and
|
||||||||||||
other comprehensive income (loss)
|
$
|
3,265
|
$
|
963
|
||||||||
(Some amounts may not reconcile due to rounding.)
|
(Dollars in thousands)
|
|||
2018
|
$
|
655
|
|
2019
|
765
|
||
2020
|
877
|
||
2021
|
975
|
||
2022
|
1,156
|
||
Next 5 years
|
7,965
|
Everest Re (1)
|
||||||||
At December 31,
|
||||||||
(Dollars in thousands)
|
2017
|
2016
|
||||||
Regulatory targeted capital
|
$
|
2,076,892
|
$
|
1,411,440
|
||||
Actual capital
|
$
|
3,391,852
|
$
|
3,635,121
|
At December 31,
|
||||||||
(Dollars in thousands)
|
2017
|
2016
|
||||||
The Prudential
|
$
|
144,618
|
$
|
146,507
|
||||
Unaffiliated life insurance company
|
$
|
34,444
|
$
|
33,860
|
Common Shares
|
||
Authorized for
|
||
Amendment Date
|
Repurchase
|
|
(Dollars in thousands)
|
||
09/21/2004
|
5,000,000
|
|
07/21/2008
|
5,000,000
|
|
02/24/2010
|
5,000,000
|
|
02/22/2012
|
5,000,000
|
|
05/15/2013
|
5,000,000
|
|
11/19/2014
|
5,000,000
|
|
30,000,000
|
Years Ended December 31,
|
||||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Dividends received on Parent shares
|
$
|
-
|
$
|
-
|
$
|
38,880
|
||||||
Dividends received on preferred stock of affiliate
|
31,032
|
31,032
|
-
|
Years Ended December 31,
|
||||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Expenses incurred
|
$
|
91,927
|
$
|
84,823
|
$
|
81,122
|
U.S. Reinsurance
|
Years Ended December 31,
|
|||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Gross written premiums
|
$
|
2,593,063
|
$
|
2,125,792
|
$
|
2,147,893
|
||||||
Net written premiums
|
1,135,604
|
930,178
|
899,918
|
|||||||||
Premiums earned
|
$
|
858,155
|
$
|
990,055
|
$
|
951,457
|
||||||
Incurred losses and LAE
|
912,124
|
554,100
|
413,292
|
|||||||||
Commission and brokerage
|
160,311
|
189,495
|
198,983
|
|||||||||
Other underwriting expenses
|
55,881
|
54,107
|
50,089
|
|||||||||
Underwriting gain (loss)
|
$
|
(270,161
|
)
|
$
|
192,353
|
$
|
289,093
|
International
|
Years Ended December 31,
|
|||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Gross written premiums
|
$
|
1,339,546
|
$
|
1,269,125
|
$
|
1,373,978
|
||||||
Net written premiums
|
615,395
|
497,645
|
562,691
|
|||||||||
Premiums earned
|
$
|
502,322
|
$
|
510,915
|
$
|
581,216
|
||||||
Incurred losses and LAE
|
622,753
|
207,605
|
394,819
|
|||||||||
Commission and brokerage
|
101,936
|
111,514
|
121,158
|
|||||||||
Other underwriting expenses
|
36,291
|
34,254
|
34,303
|
|||||||||
Underwriting gain (loss)
|
$
|
(258,658
|
)
|
$
|
157,542
|
$
|
30,936
|
Insurance
|
Years Ended December 31,
|
|||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Gross written premiums
|
$
|
1,855,881
|
$
|
1,668,811
|
$
|
1,473,760
|
||||||
Net written premiums
|
972,845
|
620,299
|
630,674
|
|||||||||
Premiums earned
|
$
|
589,118
|
$
|
593,079
|
$
|
611,087
|
||||||
Incurred losses and LAE
|
504,874
|
588,575
|
511,450
|
|||||||||
Commission and brokerage
|
(51,322
|
)
|
(19,585
|
)
|
(7,816
|
)
|
||||||
Other underwriting expenses
|
162,714
|
156,605
|
130,427
|
|||||||||
Underwriting gain (loss)
|
$
|
(27,148
|
)
|
$
|
(132,516
|
)
|
$
|
(22,974
|
)
|
Years Ended December 31,
|
||||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Underwriting gain (loss)
|
$
|
(555,967
|
)
|
$
|
217,379
|
$
|
297,055
|
|||||
Net investment income
|
286,259
|
264,807
|
273,253
|
|||||||||
Net realized capital gains (losses)
|
161,553
|
(28,941
|
)
|
50,335
|
||||||||
Corporate expense
|
(7,394
|
)
|
(8,277
|
)
|
(7,179
|
)
|
||||||
Interest, fee and bond issue cost amortization expense
|
(31,183
|
)
|
(35,435
|
)
|
(35,434
|
)
|
||||||
Other income (expense)
|
23,750
|
(10,542
|
)
|
29,256
|
||||||||
Income (loss) before taxes |
$
|
(122,982 | ) |
$
|
398,991 |
$
|
607,286 |
Years Ended December 31,
|
||||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Canada gross written premiums
|
$
|
130,136
|
$
|
124,612
|
$
|
114,859
|
2017
|
||||||||||||||||
(Dollars in thousands)
|
1st Quarter
|
2nd Quarter
|
3rd Quarter
|
4th Quarter
|
||||||||||||
Operating data:
|
||||||||||||||||
Gross written premiums
|
$
|
1,252,384
|
$
|
1,335,574
|
$
|
1,701,126
|
$
|
1,499,405
|
||||||||
Net written premiums
|
448,836
|
417,912
|
570,760
|
1,286,337
|
||||||||||||
Premiums earned
|
471,055
|
468,197
|
518,507
|
491,836
|
||||||||||||
Net investment income
|
60,849
|
71,900
|
73,417
|
80,093
|
||||||||||||
Net realized capital gains (losses)
|
117,768
|
(92,291
|
)
|
228,489
|
(92,413
|
)
|
||||||||||
Total claims and underwriting expenses
|
402,124
|
421,938
|
1,423,816
|
257,684
|
||||||||||||
Net income (loss)
|
169,178
|
35,658
|
(389,724
|
)
|
263,086
|
2016
|
||||||||||||||||
(Dollars in thousands)
|
1st Quarter
|
2nd Quarter
|
3rd Quarter
|
4th Quarter
|
||||||||||||
Operating data:
|
||||||||||||||||
Gross written premiums
|
$
|
1,129,904
|
$
|
1,177,791
|
$
|
1,505,923
|
$
|
1,250,110
|
||||||||
Net written premiums
|
464,070
|
441,255
|
622,616
|
520,181
|
||||||||||||
Premiums earned
|
481,925
|
488,855
|
556,653
|
566,616
|
||||||||||||
Net investment income
|
58,445
|
73,872
|
64,570
|
67,920
|
||||||||||||
Net realized capital gains (losses)
|
(66,377
|
)
|
29,165
|
(50,063
|
)
|
58,334
|
||||||||||
Total claims and underwriting expenses
|
421,654
|
467,275
|
448,530
|
539,211
|
||||||||||||
Net income (loss)
|
40,990
|
69,372
|
76,303
|
114,979
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
Three Months Ended March 31, 2017
|
|||||||||||
AND COMPREHENSIVE INCOME (LOSS):
|
As Previously
|
Impact of
|
||||||||||
Reported
|
Revisions
|
As Revised
|
||||||||||
(Dollars in thousands)
|
||||||||||||
CLAIMS AND EXPENSES:
|
||||||||||||
Commission, brokerage, taxes and fees
|
$
|
49,470
|
$
|
3,037
|
$
|
52,507
|
||||||
Total claims and expenses
|
411,543
|
3,037
|
414,580
|
|||||||||
INCOME (LOSS) BEFORE TAXES
|
247,984
|
(3,037
|
)
|
244,947
|
||||||||
Income tax expense (benefit)
|
76,940
|
(1,171
|
)
|
75,769
|
||||||||
NET INCOME (LOSS)
|
$
|
171,044
|
$
|
(1,866
|
)
|
$
|
169,178
|
|||||
COMPREHENSIVE INCOME (LOSS)
|
$
|
182,587
|
$
|
(1,866
|
)
|
$
|
180,721
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
Three Months Ended December 31, 2016
|
Three Months Ended September 30, 2016
|
||||||||||||||||||||||
AND COMPREHENSIVE INCOME (LOSS):
|
As Previously
|
Impact of
|
As Previously
|
Impact of
|
||||||||||||||||||||
Reported
|
Revisions
|
As Revised
|
Reported
|
Revisions
|
As Revised
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
CLAIMS AND EXPENSES:
|
||||||||||||||||||||||||
Commission, brokerage, taxes and fees
|
$
|
63,471
|
$
|
(1,599
|
)
|
$
|
61,872
|
$
|
85,563
|
$
|
(2,785
|
)
|
$
|
82,778
|
||||||||||
Total claims and expenses
|
551,765
|
(1,599
|
)
|
550,166
|
462,009
|
(2,785
|
)
|
459,224
|
||||||||||||||||
INCOME (LOSS) BEFORE TAXES
|
141,369
|
1,599
|
142,968
|
95,943
|
2,785
|
98,728
|
||||||||||||||||||
Income tax expense (benefit)
|
27,693
|
296
|
27,989
|
21,145
|
1,280
|
22,425
|
||||||||||||||||||
NET INCOME (LOSS)
|
$
|
113,676
|
$
|
1,303
|
$
|
114,979
|
$
|
74,798
|
$
|
1,505
|
$
|
76,303
|
||||||||||||
COMPREHENSIVE INCOME (LOSS)
|
$
|
22,012
|
$
|
1,303
|
$
|
23,315
|
$
|
74,465
|
$
|
1,505
|
$
|
75,970
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
Three Months Ended June 30, 2016
|
Three Months Ended March 31, 2016
|
||||||||||||||||||||||
AND COMPREHENSIVE INCOME (LOSS):
|
As Previously
|
Impact of
|
As Previously
|
Impact of
|
||||||||||||||||||||
Reported
|
Revisions
|
As Revised
|
Reported
|
Revisions
|
As Revised
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
CLAIMS AND EXPENSES:
|
||||||||||||||||||||||||
Commission, brokerage, taxes and fees
|
$
|
72,126
|
$
|
(1,717
|
)
|
$
|
70,409
|
$
|
68,822
|
$
|
(2,457
|
)
|
$
|
66,365
|
||||||||||
Total claims and expenses
|
479,860
|
(1,717
|
)
|
478,143
|
435,306
|
(2,457
|
)
|
432,849
|
||||||||||||||||
INCOME (LOSS) BEFORE TAXES
|
101,332
|
1,717
|
103,049
|
51,789
|
2,457
|
54,246
|
||||||||||||||||||
Income tax expense (benefit)
|
32,982
|
695
|
33,677
|
12,863
|
393
|
13,256
|
||||||||||||||||||
NET INCOME (LOSS)
|
$
|
68,350
|
$
|
1,022
|
$
|
69,372
|
$
|
38,926
|
$
|
2,064
|
$
|
40,990
|
||||||||||||
COMPREHENSIVE INCOME (LOSS)
|
$
|
124,381
|
$
|
1,022
|
$
|
125,403
|
$
|
100,713
|
$
|
2,064
|
$
|
102,777
|
CONSOLIDATED STATEMENTS OF
|
Three Months Ended March 31, 2017
|
|||||||||||
CHANGES IN STOCKHOLDER'S EQUITY
|
As Previously
|
Impact of
|
||||||||||
Reported
|
Revisions
|
As Revised
|
||||||||||
(Dollars in thousands, except share amounts)
|
||||||||||||
RETAINED EARNINGS:
|
||||||||||||
Balance, beginning of period
|
$
|
4,914,308
|
$
|
32,993
|
$
|
4,947,301
|
||||||
Net income (loss)
|
171,044
|
(1,866
|
)
|
169,178
|
||||||||
Balance, end of period
|
5,085,352
|
31,127
|
5,116,479
|
|||||||||
TOTAL STOCKHOLDER'S EQUITY, END OF PERIOD
|
$
|
5,448,217
|
$
|
31,127
|
$
|
5,479,344
|
CONSOLIDATED STATEMENTS OF
|
Three Months Ended December 31, 2016
|
Three Months Ended September 30, 2016
|
||||||||||||||||||||||
CHANGES IN STOCKHOLDER'S EQUITY
|
As Previously
|
Impact of
|
As Previously
|
Impact of
|
||||||||||||||||||||
Reported
|
Revisions
|
As Revised
|
Reported
|
Revisions
|
As Revised
|
|||||||||||||||||||
(Dollars in thousands, except share amounts)
|
||||||||||||||||||||||||
RETAINED EARNINGS:
|
||||||||||||||||||||||||
Balance, beginning of period
|
$
|
4,800,632
|
$
|
31,690
|
$
|
4,832,322
|
$
|
4,725,834
|
$
|
30,185
|
$
|
4,756,019
|
||||||||||||
Net income (loss)
|
113,676
|
1,303
|
114,979
|
74,798
|
1,505
|
76,303
|
||||||||||||||||||
Balance, end of period
|
4,914,308
|
32,993
|
4,947,301
|
4,800,632
|
31,690
|
4,832,322
|
||||||||||||||||||
TOTAL STOCKHOLDER'S EQUITY, END OF PERIOD
|
$
|
5,265,560
|
$
|
32,993
|
$
|
5,298,553
|
$
|
5,240,955
|
$
|
31,690
|
$
|
5,272,645
|
CONSOLIDATED STATEMENTS OF
|
Three Months Ended June 30, 2016
|
Three Months Ended March 31, 2016
|
||||||||||||||||||||||
CHANGES IN STOCKHOLDER'S EQUITY
|
As Previously
|
Impact of
|
As Previously
|
Impact of
|
||||||||||||||||||||
Reported
|
Revisions
|
As Revised
|
Reported
|
Revisions
|
As Revised
|
|||||||||||||||||||
(Dollars in thousands, except share amounts)
|
||||||||||||||||||||||||
RETAINED EARNINGS:
|
||||||||||||||||||||||||
Balance, beginning of period
|
$
|
4,657,484
|
$
|
29,163
|
$
|
4,686,647
|
$
|
4,618,558
|
$
|
27,099
|
$
|
4,645,657
|
||||||||||||
Net income (loss)
|
68,350
|
1,022
|
69,372
|
38,926
|
2,064
|
40,990
|
||||||||||||||||||
Balance, end of period
|
4,725,834
|
30,185
|
4,756,019
|
4,657,484
|
29,163
|
4,686,647
|
||||||||||||||||||
TOTAL STOCKHOLDER'S EQUITY, END OF PERIOD
|
$
|
5,164,053
|
$
|
30,185
|
$
|
5,194,238
|
$
|
5,036,717
|
$
|
29,163
|
$
|
5,065,880
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Three Months Ended March 31, 2017
|
|||||||||||
As Previously
|
Impact of
|
|||||||||||
Reported
|
Revisions
|
As Revised
|
||||||||||
(Dollars in thousands)
|
||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||
Net income (loss)
|
$
|
171,044
|
$
|
(1,866
|
)
|
$
|
169,178
|
|||||
Decrease (increase) in income taxes
|
75,304
|
(1,172
|
)
|
74,132
|
||||||||
Increase (decrease) in other net payable to reinsurers
|
(30,525
|
)
|
3,347
|
(27,178
|
)
|
|||||||
Change in other assets and liabilities, net
|
18,204
|
(309
|
)
|
17,895
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Three Months Ended December 31, 2016
|
Three Months Ended September 30, 2016
|
||||||||||||||||||||||
As Previously
|
Impact of
|
As Previously
|
Impact of
|
|||||||||||||||||||||
Reported
|
Revisions
|
As Revised
|
Reported
|
Revisions
|
As Revised
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||||||||||||||
Net income (loss)
|
$
|
113,676
|
$
|
1,303
|
$
|
114,979
|
$
|
74,798
|
$
|
1,505
|
$
|
76,303
|
||||||||||||
Decrease (increase) in income taxes
|
27,046
|
298
|
27,344
|
25,089
|
1,279
|
26,368
|
||||||||||||||||||
Increase (decrease) in other net payable to reinsurers
|
(154,982
|
)
|
(850
|
)
|
(155,832
|
)
|
160,982
|
(3,653
|
)
|
157,329
|
||||||||||||||
Change in other assets and liabilities, net
|
141,045
|
(751
|
)
|
140,294
|
(139,171
|
)
|
869
|
(138,302
|
)
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Three Months Ended June 30, 2016
|
Three Months Ended March 31, 2016
|
||||||||||||||||||||||
As Previously
|
Impact of
|
As Previously
|
Impact of
|
|||||||||||||||||||||
Reported
|
Revisions
|
As Revised
|
Reported
|
Revisions
|
As Revised
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||||||||||||||
Net income (loss)
|
$
|
68,350
|
$
|
1,022
|
$
|
69,372
|
$
|
38,926
|
$
|
2,064
|
$
|
40,990
|
||||||||||||
Decrease (increase) in income taxes
|
1,644
|
696
|
2,340
|
6,546
|
393
|
6,939
|
||||||||||||||||||
Increase (decrease) in other net payable to reinsurers
|
(263,654
|
)
|
(1,989
|
)
|
(265,643
|
)
|
(106,588
|
)
|
(1,122
|
)
|
(107,710
|
)
|
||||||||||||
Change in other assets and liabilities, net
|
(10,280
|
)
|
271
|
(10,009
|
)
|
24,496
|
(1,335
|
)
|
23,161
|
Column A
|
Column B
|
Column C
|
Column D
|
|||||||||
Amount
|
||||||||||||
Shown in
|
||||||||||||
Market
|
Balance
|
|||||||||||
(Dollars in thousands)
|
Cost
|
Value
|
Sheet
|
|||||||||
Fixed maturities-available for sale
|
||||||||||||
Bonds:
|
||||||||||||
U.S. government and government agencies
|
$
|
671,449
|
$
|
664,513
|
$
|
664,513
|
||||||
State, municipalities and political subdivisions
|
563,789
|
585,469
|
585,469
|
|||||||||
Foreign government securities
|
514,048
|
523,620
|
523,620
|
|||||||||
Foreign corporate securities
|
863,861
|
870,989
|
870,989
|
|||||||||
Public utilities
|
52,712
|
52,860
|
52,860
|
|||||||||
All other corporate bonds
|
2,093,124
|
2,107,350
|
2,107,350
|
|||||||||
Mortgage - backed securities
|
||||||||||||
Commercial
|
52,121
|
51,751
|
51,751
|
|||||||||
Agency residential
|
114,435
|
113,288
|
113,288
|
|||||||||
Non-agency residential
|
51
|
58
|
58
|
|||||||||
Redeemable preferred stock
|
2,032
|
2,023
|
2,023
|
|||||||||
Total fixed maturities-available for sale
|
4,927,622
|
4,971,921
|
4,971,921
|
|||||||||
Equity securities - available for sale, at fair value(1)
|
592,816
|
822,375
|
822,375
|
|||||||||
Short-term investments
|
241,506
|
241,506
|
241,506
|
|||||||||
Other invested assets
|
835,597
|
838,694
|
838,694
|
|||||||||
Other invested assets, at fair value (1)
|
1,773,214
|
1,807,473
|
1,807,473
|
|||||||||
Cash
|
229,552
|
229,552
|
229,552
|
|||||||||
Total investments and cash
|
$
|
8,600,307
|
$
|
8,911,521
|
$
|
8,911,521
|
||||||
(Some amounts may not reconcile due to rounding.)
|
At December 31,
|
||||||||
(Dollars and share amounts in thousands, except par value per share)
|
2017
|
2016
|
||||||
ASSETS:
|
||||||||
Fixed maturities - available for sale, at market value
|
$
|
108,010
|
$
|
98,143
|
||||
(amortized cost: 2017, $109,008; 2016, $99,391)
|
||||||||
Equity securities - available for sale, at fair value
|
191,098
|
133,755
|
||||||
Other invested assets
|
51,616
|
31,113
|
||||||
Other invested assets, at fair value
|
1,807,473
|
1,766,626
|
||||||
Short-term investments
|
4,507
|
13,013
|
||||||
Cash
|
10,295
|
10,222
|
||||||
Total investments and cash
|
2,172,999
|
2,052,872
|
||||||
Investment in subsidiaries, at equity in the underlying net assets
|
3,842,806
|
3,931,264
|
||||||
Note receivable - affiliated
|
250,000
|
250,000
|
||||||
Accrued investment income
|
644
|
4,938
|
||||||
Advances to affiliates
|
(72
|
)
|
218
|
|||||
Other assets
|
4,832
|
17,618
|
||||||
TOTAL ASSETS
|
$
|
6,271,209
|
$
|
6,256,910
|
||||
LIABILITIES:
|
||||||||
4.868% Senior notes due 6/1/2044
|
$
|
396,834
|
$
|
396,714
|
||||
6.6% Long term notes due 5/1/2067
|
236,561
|
236,462
|
||||||
Accrued interest on debt and borrowings
|
2,727
|
3,537
|
||||||
Income taxes
|
196,270
|
309,816
|
||||||
Due to affiliates
|
25,475
|
9,705
|
||||||
Other liabilities
|
619
|
2,123
|
||||||
Total liabilities
|
858,486
|
958,357
|
||||||
STOCKHOLDER'S EQUITY:
|
||||||||
Common stock, par value: $0.01; 3,000 shares authorized;
|
||||||||
1,000 shares issued and outstanding (2017 and 2016)
|
-
|
-
|
||||||
Additional paid-in capital
|
387,841
|
387,567
|
||||||
Accumulated other comprehensive income (loss), net of deferred income
|
||||||||
tax expense (benefit) of ($299) at 2017 and ($19,549) at 2016
|
(942
|
)
|
(36,315
|
)
|
||||
Retained earnings
|
5,025,824
|
4,947,301
|
||||||
Total stockholder's equity
|
5,412,723
|
5,298,553
|
||||||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY
|
$
|
6,271,209
|
$
|
6,256,910
|
||||
See notes to consolidated financial statements.
|
Years Ended December 31,
|
||||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
REVENUES:
|
||||||||||||
Net investment income
|
$
|
34,813
|
$
|
33,748
|
$
|
40,441
|
||||||
Net investment income - Affiliated
|
4,300
|
4,300
|
4,300
|
|||||||||
Net realized capital gains (losses)
|
81,027
|
(12,635
|
)
|
119,075
|
||||||||
Realized gain of sale of subsidiary
|
-
|
(28,032
|
)
|
94,704
|
||||||||
Other income (expense)
|
(297
|
)
|
(268
|
)
|
(263
|
)
|
||||||
Net income (loss) of subsidiaries
|
(124,269
|
)
|
288,851
|
274,362
|
||||||||
Total revenues
|
(4,426
|
)
|
285,964
|
532,619
|
||||||||
EXPENSES:
|
||||||||||||
Interest expense
|
31,183
|
35,435
|
35,434
|
|||||||||
Corporate expense
|
5,233
|
6,713
|
5,251
|
|||||||||
Total expenses
|
36,416
|
42,148
|
40,685
|
|||||||||
INCOME (LOSS) BEFORE TAXES
|
(40,842
|
)
|
243,816
|
491,934
|
||||||||
Income tax expense (benefit)
|
(119,040
|
)
|
(57,828
|
)
|
79,544
|
|||||||
NET INCOME (LOSS)
|
$
|
78,198
|
$
|
301,644
|
$
|
412,390
|
||||||
Other comprehensive income (loss), net of tax :
|
||||||||||||
Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period
|
(10,536
|
)
|
4,114
|
(23,157
|
)
|
|||||||
Less: reclassification adjustment for realized losses (gains) included in net income (loss)
|
2,303
|
21,273
|
(817
|
)
|
||||||||
Total URA(D) on securities arising during the period
|
(8,233
|
)
|
25,387
|
(23,974
|
)
|
|||||||
Foreign currency translation adjustments
|
37,427
|
2,849
|
(54,578
|
)
|
||||||||
Benefit plan actuarial net gain (loss) for the period
|
1,027
|
(7,488
|
)
|
5,681
|
||||||||
Reclassification adjustment for amortization of net (gain) loss included in net income (loss)
|
5,477
|
5,073
|
6,216
|
|||||||||
Total benefit plan net gain (loss) for the period
|
6,504
|
(2,415
|
)
|
11,897
|
||||||||
Total other comprehensive income (loss), net of tax
|
35,698
|
25,821
|
(66,655
|
)
|
||||||||
COMPREHENSIVE INCOME (LOSS)
|
$
|
113,896
|
$
|
327,465
|
$
|
345,735
|
||||||
See notes to consolidated financial statements.
|
Years Ended December 31,
|
||||||||||||
(Dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||
Net income (loss)
|
$
|
78,198
|
$
|
301,644
|
$
|
412,390
|
||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Equity in (earnings) deficit of subsidiaries
|
124,269
|
(288,851
|
)
|
(274,362
|
)
|
|||||||
Decrease (increase) in advances to affiliates
|
-
|
-
|
20,243
|
|||||||||
Increase (decrease) in income taxes
|
(113,773
|
)
|
(44,260
|
)
|
1,082
|
|||||||
Change in equity adjustments in limited partnerships
|
(121
|
)
|
(220
|
)
|
-
|
|||||||
Change in other assets and liabilities, net
|
31,044
|
(2,187
|
)
|
(6,872
|
)
|
|||||||
Amortization of bond premium (accrual of bond discount)
|
450
|
400
|
259
|
|||||||||
Net realized capital losses (gains)
|
(81,027
|
)
|
40,667
|
(119,075
|
)
|
|||||||
Net cash provided by (used in) operating activities
|
39,040
|
7,193
|
33,665
|
|||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||
Additional investment in subsidiaries
|
741
|
(4,815
|
)
|
(2,837
|
)
|
|||||||
Proceeds from fixed maturities matured/called - available for sale, at market value
|
6,612
|
5,244
|
2,972
|
|||||||||
Proceeds from fixed maturities sold - available for sale, at market value
|
7,189
|
-
|
-
|
|||||||||
Proceeds from equity maturities sold - available for sale, at fair value
|
37,634
|
23,777
|
43,402
|
|||||||||
Proceeds from sale of subdisidiary (net of cash disposed)
|
-
|
47,721
|
3,934
|
|||||||||
Distributions from other invested assets
|
132,064
|
93,959
|
-
|
|||||||||
Cost of fixed maturities acquired - available for sale, at market value
|
(24,058
|
)
|
(39,214
|
)
|
(60,240
|
)
|
||||||
Cost of equity securities acquired - available for sale, at fair value
|
(54,605
|
)
|
(32,361
|
)
|
(76,559
|
)
|
||||||
Cost of other invest assets acquired
|
(152,446
|
)
|
(121,806
|
)
|
-
|
|||||||
Net change in short-term investments
|
8,506
|
24,789
|
54,588
|
|||||||||
Net change in unsettled securities transaction
|
(604
|
)
|
(497
|
)
|
1,101
|
|||||||
Net cash provided by (used in) investing activities
|
(38,967
|
)
|
(3,203
|
)
|
(33,639
|
)
|
||||||
Net increase (decrease) in cash
|
73
|
3,990
|
26
|
|||||||||
Cash, beginning of period
|
10,222
|
6,232
|
6,206
|
|||||||||
Cash, end of period
|
$
|
10,295
|
$
|
10,222
|
$
|
6,232
|
||||||
Non-cash financing transaction:
|
||||||||||||
Non-cash contribution from parent
|
$
|
598
|
$
|
12,778
|
$
|
12,497
|
||||||
Non-cash contribution to subsidiaries
|
(598
|
)
|
(12,778
|
)
|
(12,497
|
)
|
||||||
NON-CASH TRANSACTION (2015):
|
||||||||||||
Exchange of common shares of parent company, held as other invested assets at fair value,
|
$
|
-
|
$
|
-
|
$
|
1,773,214
|
||||||
for preferred shares of an affiliated company, held as other invested assets at fair value
|
||||||||||||
See notes to consolidated financial statements.
|
1)
|
The accompanying condensed financial information should be read in conjunction with the Consolidated Financial Statements and related Notes of Everest Reinsurance Holdings, Inc. and its Subsidiaries.
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2)
|
The Senior Notes and Long-Term Subordinated Notes presented in Notes 6 and 7 are direct obligations of the Registrant.
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3)
|
Everest Re Group, Ltd., the parent company, entered into a $250,000 thousand long term promissory note agreement with Everest Reinsurance Holdings, Inc. as of December 31, 2014. The note will mature on December 31, 2023 and has an interest rate of 1.72% that will be paid annually. This transaction is presented as a Note Receivable – Affiliated in the Condensed Balance Sheets of Everest Reinsurance Holdings, Inc.
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4)
|
In December, 2015, Holdings transferred the 9,719,971 Common Shares of Group, which it held as other invested assets, at fair value, valued at $1,773,214 thousand, to Preferred Holdings, an affiliated entity and subsidiary of Group, in exchange for 1,773.214 preferred shares of Preferred Holdings with a $1,000 thousand par value and 1.75% annual dividend rate. After the exchange, Holdings no longer holds any shares or has any ownership interest in Group.
|
Column A
|
Column B
|
Column C
|
Column D
|
Column E
|
Column F
|
Column G
|
Column H
|
Column I
|
Column J
|
|||||||||||||||||||||||||||
Reserve
|
Incurred
|
|||||||||||||||||||||||||||||||||||
Geographic Area
|
for Losses
|
Loss and
|
Amortization
|
|||||||||||||||||||||||||||||||||
Deferred
|
and Loss
|
Unearned
|
Net
|
Loss
|
of Deferred
|
Other
|
Net
|
|||||||||||||||||||||||||||||
Acquisition
|
Adjustment
|
Premium
|
Premiums
|
Investment
|
Adjustment
|
Acquisition
|
Operating
|
Written
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
Costs
|
Expenses
|
Reserves
|
Earned
|
Income
|
Expenses
|
Costs
|
Expenses
|
Premium
|
|||||||||||||||||||||||||||
Domestic
|
$
|
260,706
|
$
|
7,070,895
|
$
|
1,352,987
|
$
|
1,447,273
|
$
|
253,852
|
$
|
1,416,998
|
$
|
108,989
|
$
|
218,595
|
$
|
2,108,449
|
||||||||||||||||||
International
|
47,035
|
2,272,133
|
254,635
|
502,322
|
32,407
|
622,753
|
101,936
|
36,291
|
615,395
|
|||||||||||||||||||||||||||
Total
|
$
|
307,741
|
$
|
9,343,028
|
$
|
1,607,622
|
$
|
1,949,595
|
$
|
286,259
|
$
|
2,039,751
|
$
|
210,925
|
$
|
254,886
|
$
|
2,723,844
|
||||||||||||||||||
Domestic
|
$
|
44,301
|
$
|
6,489,232
|
$
|
1,054,832
|
$
|
1,583,134
|
$
|
231,748
|
$
|
1,142,675
|
$
|
169,910
|
$
|
210,712
|
$
|
1,550,477
|
||||||||||||||||||
International
|
24,320
|
1,842,056
|
257,553
|
510,915
|
33,059
|
207,605
|
111,514
|
34,254
|
497,645
|
|||||||||||||||||||||||||||
Total
|
$
|
68,621
|
$
|
8,331,288
|
$
|
1,312,386
|
$
|
2,094,049
|
$
|
264,807
|
$
|
1,350,280
|
$
|
281,424
|
$
|
244,966
|
$
|
2,048,122
|
||||||||||||||||||
Domestic
|
$
|
61,807
|
$
|
6,033,374
|
$
|
1,059,530
|
$
|
1,562,544
|
$
|
239,072
|
$
|
924,742
|
$
|
191,167
|
$
|
180,516
|
$
|
1,530,592
|
||||||||||||||||||
International
|
24,596
|
1,907,346
|
290,269
|
581,216
|
34,181
|
394,819
|
121,158
|
34,303
|
562,691
|
|||||||||||||||||||||||||||
Total
|
$
|
86,402
|
$
|
7,940,720
|
$
|
1,349,799
|
$
|
2,143,760
|
$
|
273,253
|
$
|
1,319,561
|
$
|
312,325
|
$
|
214,819
|
$
|
2,093,283
|
||||||||||||||||||
(Some amounts may not reconcile due to rounding.)
|
Column A
|
Column B
|
Column C
|
Column D
|
Column E
|
Column F
|
|||||||||||||||
Ceded to
|
Assumed
|
|||||||||||||||||||
Gross
|
Other
|
from Other
|
Net
|
Assumed
|
||||||||||||||||
(Dollars in thousands)
|
Amount
|
Companies
|
Companies
|
Amount
|
to Net
|
|||||||||||||||
Total property and liability
|
||||||||||||||||||||
insurance premiums earned
|
$
|
1,655,023
|
$
|
3,548,264
|
$
|
3,842,836
|
$
|
1,949,595
|
197.1
|
%
|
||||||||||
Total property and liability
|
||||||||||||||||||||
insurance premiums earned
|
$
|
1,608,783
|
$
|
3,007,332
|
$
|
3,492,598
|
$
|
2,094,049
|
166.8
|
%
|
||||||||||
Total property and liability
|
||||||||||||||||||||
insurance premiums earned
|
$
|
1,439,795
|
$
|
2,933,519
|
$
|
3,637,484
|
$
|
2,143,760
|
169.7
|
%
|
This ‘10-K’ Filing | Date | Other Filings | ||
---|---|---|---|---|
12/31/23 | ||||
9/6/20 | ||||
1/1/20 | ||||
12/31/19 | 10-K | |||
12/15/19 | ||||
6/1/19 | ||||
4/1/19 | 10-K | |||
12/15/18 | ||||
Filed on: | 3/30/18 | |||
3/15/18 | ||||
2/15/18 | ||||
2/1/18 | ||||
1/30/18 | ||||
For Period end: | 12/31/17 | |||
12/22/17 | ||||
12/15/17 | ||||
11/20/17 | ||||
11/16/17 | ||||
9/19/17 | ||||
9/12/17 | ||||
9/8/17 | ||||
8/15/17 | ||||
7/13/17 | ||||
6/30/17 | 10-Q | |||
5/15/17 | 10-Q | |||
5/14/17 | ||||
4/13/17 | ||||
3/31/17 | 10-Q | |||
2/10/17 | ||||
1/1/17 | ||||
12/31/16 | 10-K | |||
12/15/16 | ||||
9/30/16 | 10-Q | |||
8/24/16 | ||||
6/30/16 | 10-Q | |||
3/31/16 | 10-Q | |||
12/31/15 | 10-K | |||
12/15/15 | ||||
12/8/15 | ||||
12/4/15 | ||||
12/1/15 | ||||
7/13/15 | ||||
12/31/14 | 10-K | |||
11/18/14 | ||||
10/15/14 | ||||
6/5/14 | 8-K | |||
4/24/14 | ||||
7/1/13 | ||||
2/27/13 | ||||
12/31/12 | 10-K | |||
7/20/12 | ||||
7/1/12 | ||||
1/2/11 | ||||
4/1/10 | ||||
3/31/09 | 10-K, 10-Q | |||
3/19/09 | ||||
12/30/08 | ||||
11/15/07 | ||||
5/3/07 | 8-K | |||
10/12/04 | 8-K | |||
9/19/00 | 8-K/A | |||
3/31/00 | 10-Q, 8-K | |||
3/15/00 | 8-K | |||
3/14/00 | 8-K | |||
List all Filings |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 10/07/20 Everest Reinsurance Holdings Inc. 424B5 1:611K Donnelley … Solutions/FA 10/01/20 Everest Reinsurance Holdings Inc. 424B5 1:609K Donnelley … Solutions/FA |