BERMUDA
Seon Place, 4th Floor
Hamilton HM 19, Bermuda
CONTACT
Jon Levenson
Head of Investor Relations
(908) 604-3169
25% Growth in Gross Written Premium with an 87.9% Attritional Combined Ratio. On Track to Achieve Strategic Plan Objectives
HAMILTON, Bermuda--(BUSINESS WIRE)-- Everest Re Group, Ltd. (“Everest” or the “Company”) today reported its 2021 third quarter results.
- Gross written premium (“GWP”) growth of 25% year over year to $3.5 billion
- Insurance segment GWP growth of 43% year over year to $1.0 billion. The second consecutive quarter above $1.0 billion GWP
- Reinsurance segment GWP growth of 19% year over year to $2.5 billion
- Attritional combined ratio of 87.9%
- Excellent Insurance segment attritional combined ratio of 90.3%, a 3.9-point improvement year over year
- Pre-tax Underwriting loss of $323 million inclusive of pre-tax net catastrophe losses of $635 million
- Robust net investment income of $293 million, led by outstanding alternative asset performance of $170 million
- Common share repurchases of $160 million during the quarter and $200 million year to date
- Annualized year to date Total Shareholder Return of 13.2%
Everest Re Group President & CEO Juan C. Andrade commented on the Company’s results:
“During the third quarter of 2021, Everest made significant progress toward the strategic plan objectives detailed in the June investor day presentation. We achieved outstanding top line premium growth across both of our insurance and reinsurance businesses, continued to improve the attritional profitability for our Insurance Division, remained focused on risk appetite discipline and the diversification of our business, demonstrated strong expense management, delivered excellent investment income results, opportunistically reduced our cost of capital, and returned capital to our shareholders. Despite the high frequency and severity of the natural catastrophe activity in the quarter, we also benefited from the de-risking of the CAT portfolio and we remain on track to achieve our total shareholder return objective. We continue to consistently demonstrate our ability to relentlessly execute against our plans regardless of the external environment.”
Summary of Third Quarter 2021 Net Income and Other Items
- Net income (loss) of $(73.5) million, equal to $(1.88) per share vs. net income of $243.1 million, equal to $6.07 per share in the same period during 2020
- Net operating income (loss) of $(52.6) million, equal to $(1.34) per share vs. net operating income of $97.0 million, equal to $2.42 per share in the same period during 2020
- Underwriting loss of $323.4 million inclusive of catastrophe losses from Hurricane Ida and European Floods during the quarter, in the amount of $635 million net of recoveries and reinstatement premiums ($555 million in reinsurance and $80 million in Insurance)
- GAAP combined ratio of 112.2% which includes 26.2 points of catastrophe losses vs. 14.0 points of catastrophe losses in the same period during 2020
- No change to Covid-19 Pandemic (“Pandemic”) ultimate loss estimates of $511 million
- Operating cashflow was $1.2 billion vs $1.1 billion a year ago. Year to date operating cashflow was $2.8 billion vs $2.2 billion a year ago.
The following table summarizes the Company’s net income and related financial metrics.
| Net income and operating income |
Q3 |
Year to Date |
|
Q3 |
Year to Date |
| All values in USD millions except for per share amounts and percentages |
2021 |
2021 |
|
2020 |
2020 |
| Everest Re Group | |||||
| Net income |
(73.5) |
948.4 |
243.1 |
450.5 |
|
| Net operating income (loss) |
(52.6) |
794.7 |
97.0 |
344.2 |
|
| Net income per diluted common share |
(1.88) |
23.72 |
6.07 |
11.18 |
|
| Net operating income per diluted common share |
(1.34) |
19.87 |
2.42 |
8.54 |
|
| Net income annualized return on average equity |
(3.0%) |
13.6% |
11.0% |
6.8% |
|
| Net operating income annualized return on average equity |
(2.2%) |
11.4% |
4.4% |
5.2% |
|
| Period end equity and book value |
Q3 2021 |
Year to Date |
|||
| Shareholders' equity |
9,978.6 |
||||
| Book value per share |
253.40 |
||||
| Change in BVPS adjusted for dividends |
6.1% |
||||
| Total Shareholder Return ("TSR") - Annualized |
13.2% |
||||
| Notes | |||||
| 1/ Refer to the reconciliation of net income to net operating income found on page 7 of this press release | |||||
The following information summarizes the Company’s underwriting results, on a consolidated basis and by segment – Reinsurance and Insurance, with selected commentary on results by segment.
| Underwriting information - Everest Re Group |
Q3 |
Year to Date |
|
Q3 |
Year to Date |
|
Year on Year Change |
|
| All values in USD millions except for percentages |
2021 |
2021 |
|
2020 |
2020 |
|
Q3 |
Year to Date |
| Gross written premium |
3,497.6 |
9,619.2 |
2,791.6 |
7,731.8 |
25.3% |
24.4% |
||
| Net written premium |
3,025.8 |
8,389.1 |
2,448.7 |
6,667.6 |
23.6% |
25.8% |
||
| Loss ratio |
85.6% |
73.3% |
78.7% |
72.8% |
6.9 pts | 0.5 pts | ||
| Commission and brokerage ratio |
21.2% |
21.2% |
20.2% |
21.7% |
1.0 pts | (0.5) pts | ||
| Other underwriting expenses |
5.3% |
5.6% |
6.3% |
6.1% |
(1.0) pts | (0.5) pts | ||
| Combined ratio |
112.2% |
100.1% |
105.2% |
100.6% |
7.0 pts | (0.5) pts | ||
| Attritional combined ratio |
87.9% |
87.6% |
85.8% |
88.0% |
2.1 pts | (0.4) pts | ||
| Pre-tax net catastrophe losses |
635.0 |
940.0 |
300.0 |
345.0 |
||||
| Pre-tax net covid losses |
- |
- |
124.9 |
434.9 |
||||
| Pre-tax net prior year reserve development |
(1.6) |
(6.1) |
(1.3) |
1.4 |
||||
| Notes | ||||||||
| 1/ Attritional ratios exclude prior year reserve development, Covid-19 pandemic impacts catastrophe losses, and reinstatement premiums | ||||||||
| 2/ Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums | ||||||||
Reinsurance segment
- Reinsurance achieved excellent growth in the quarter, growing premium 19% year over year to $2.5 billion. The growth was driven by continued partnership with our core clients and Everest’s position as a preferred reinsurance platform. All target classes of business and geographies saw growth in the quarter, and our portfolio is benefiting from improved economic conditions and strong rate performance by our cedants.
- The attritional combined ratio for the quarter of 87.1% reflects the deliberate and targeted shaping of our portfolio to maximize long term results with a higher mix of pro rata structures, an improved balance of property and casualty exposures, prudence in loss ratio selections, and continuous expense discipline. The operating expense ratio of 2.3% is world class and demonstrates the scalability of our franchise.
- Reinsurance CAT losses for the quarter totaled $555 million net of recoveries and reinstatement premiums, driven by Hurricane Ida and the Berndt flooding event in Europe. The cumulative, deliberate, and purposeful actions we have taken to reduce volatility have reduced our company’s risk profile.
| Underwriting information - Reinsurance segment |
Q3 |
Year to Date |
|
Q3 |
Year to Date |
|
Year on Year Change |
|
| All values in USD millions except for percentages |
2021 |
2021 |
|
2020 |
2020 |
|
Q3 |
Year to Date |
| Gross written premium |
2,488.3 |
6,695.6 |
2,087.0 |
5,403.1 |
19.2% |
23.9% |
||
| Net written premium |
2,293.0 |
6,265.8 |
1,936.9 |
4,974.0 |
18.4% |
26.0% |
||
| Loss ratio |
89.4% |
74.1% |
80.0% |
72.2% |
9.4 pts | 1.9 pts | ||
| Commission and brokerage ratio |
23.8% |
23.8% |
22.3% |
24.3% |
1.5 pts | (0.5) pts | ||
| Other underwriting expenses |
2.3% |
2.5% |
3.1% |
2.9% |
(0.8) pts | (0.4) pts | ||
| Combined ratio |
115.5% |
100.5% |
105.4% |
99.4% |
10.1 pts | 1.1 pts | ||
| Attritional combined ratio |
87.1% |
86.3% |
83.0% |
85.7% |
4.1 pts | 0.6 pts | ||
| Pre-tax net catastrophe losses |
555.0 |
802.5 |
262.5 |
287.0 |
||||
| Pre-tax net covid losses |
- |
- |
109.9 |
351.0 |
||||
| Pre-tax net prior year reserve development |
(1.6) |
(4.9) |
(1.3) |
(3.1) |
||||
| Notes | ||||||||
| 1/ Attritional ratios exclude prior year reserve development, Covid-19 pandemic impacts catastrophe losses, and reinstatement premiums | ||||||||
| 2/ Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums | ||||||||
Insurance segment
- Everest Insurance reported another outstanding premium quarter with record quarterly growth of 43% driving over $1.0 billion in gross written premium for a second consecutive quarter. The exceptional growth in Q3 was driven by increasingly favorable economic conditions, new business growth, and the combined impact of strong renewal retention and a continuing favorable rate environment.
- The Insurance segment also continues to expand attritional underwriting margins with improvement in the loss and expense ratio and delivered a record-setting attritional combined ratio of 90.3%.
- These results reflect our relentless focus on execution and the success of our nimble and disciplined underwriting, which reacts quickly to market conditions and best positions our portfolio for long term profitability.
| Underwriting information - Insurance segment |
Q3 |
Year to Date |
|
Q3 |
Year to Date |
|
Year on Year Change |
|
| All values in USD millions except for percentages |
2021 |
2021 |
|
2020 |
2020 |
|
Q3 |
Year to Date |
| Gross written premium |
1,009.3 |
2,923.6 |
704.6 |
2,328.7 |
43.2% |
25.5% |
||
| Net written premium |
732.8 |
2,123.3 |
511.8 |
1,693.6 |
43.2% |
25.4% |
||
| Loss ratio |
74.7% |
70.8% |
74.8% |
74.6% |
(0.1) pts | (3.8) pts | ||
| Commission and brokerage ratio |
13.7% |
13.4% |
13.4% |
14.0% |
0.3 pts | (0.6) pts | ||
| Other underwriting expenses |
14.1% |
14.5% |
16.3% |
15.4% |
(2.2) pts | (0.9) pts | ||
| Combined ratio |
102.5% |
98.7% |
104.5% |
104.0% |
(2.0) pts | (5.3) pts | ||
| Attritional combined ratio |
90.3% |
91.5% |
94.2% |
94.3% |
(3.9) pts | (2.8) pts | ||
| Pre-tax net catastrophe losses |
80.0 |
137.5 |
37.5 |
58.0 |
||||
| Pre-tax net covid losses |
- |
- |
15.0 |
84.0 |
||||
| Pre-tax net prior year reserve development |
- |
(1.2) |
- |
4.6 |
||||
| Notes | ||||||||
| 1/ Attritional ratios exclude prior year reserve development, Covid-19 pandemic impacts catastrophe losses, and reinstatement premiums | ||||||||
| 2/ Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums | ||||||||
Investments and Shareholders’ Equity
- Total invested assets and cash of $27.8 billion at September 30, 2021, 9.0% growth versus year end 2020
- Shareholders’ equity of $10.0 billion as of September 30, 2021
- Book value per diluted share of $253.40 at September 30, 2021 vs. $243.25 at December 31, 2020
- Excluding unrealized gains (losses) on fixed income investments, book value per diluted share of $242.83 at September 30, 2021, vs. $225.15 at December 31, 2020
- Common share dividends declared and paid in the quarter of $1.55 per share, equal to $61.5 million
- Common share repurchases of $160 million during the quarter, representing 625,358 shares at an average price of $255.43 per share
| Equity and Book Value per Share |
Q3 |
Year to Date |
|
Q3 |
Year to Date |
| All values in USD millions except for per share amounts and percentages |
2021 |
2021 |
|
2020 |
2020 |
| Beginning shareholders' equity |
10,416.8 |
9,726.2 |
9,286.3 |
9,132.9 |
|
| Net income |
(73.5) |
948.4 |
243.1 |
450.5 |
|
| Change- unrealized gains (losses) - Fixed inc. investments |
(101.4) |
(307.9) |
52.0 |
348.5 |
|
| Dividends to shareholders |
(61.5) |
(185.7) |
(61.9) |
(187.1) |
|
| Purchase of treasury shares |
(159.7) |
(200.1) |
- |
(200.0) |
|
| Other |
(42.1) |
(2.3) |
71.8 |
46.5 |
|
| Ending shareholders' equity |
9,978.6 |
9,978.6 |
9,591.3 |
9,591.3 |
|
| Common shares outstanding |
39.38 |
39.97 |
|||
| Book value per common share outstanding |
253.40 |
239.98 |
|||
| Less: Unrealized on fixed inc. investments ("URAD") |
10.57 |
16.34 |
|||
| Book value excl. URAD per common share outstanding |
242.83 |
223.64 |
|||
| Common share dividends paid - last 12 months |
6.20 |
6.20 |
This news release contains forward-looking statements within the meaning of the U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. Federal securities laws. These statements involve risks and uncertainties that could cause actual results to differ materially from those contained in forward-looking statements made on behalf of the Company. These risks and uncertainties include the impact of general economic conditions and conditions affecting the insurance and reinsurance industry, the adequacy of our reserves, our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, investment market and investment income fluctuations, trends in insured and paid losses, catastrophes, pandemic, regulatory and legal uncertainties and other factors described in our latest Annual Report on Form 10-K. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About Everest Re Group, Ltd.
Everest Re Group, Ltd. (“Everest”) is a leading global provider of reinsurance and insurance, operating for close to 50 years through subsidiaries in the U.S., Europe, Singapore, Canada, Bermuda, and other territories.
Everest offers property, casualty, and specialty products through its various operating affiliates located in key markets around the world.
Everest common stock (NYSE:RE) is a component of the S&P 500 index.
Additional information about Everest, our people, and our products can be found on our website at www.everestre.com. All issuing companies may not do business in all jurisdictions.
A conference call discussing the third quarter results will be held at 8:00 a.m. Eastern Time on October 28, 2021. The call will be available on the Internet through the Company’s web site at everestre.com/investors.
Recipients are encouraged to visit the Company’s web site to view supplemental financial information on the Company’s results. The supplemental information is located at www.everestre.com in the “Investors/Financials/Quarterly Results” section of the website. The supplemental financial information may also be obtained by contacting the Company directly.
_______________________________________________
The Company generally uses after-tax operating income (loss), a non-GAAP financial measure, to evaluate its performance. After-tax operating income (loss) consists of net income (loss) excluding after-tax net realized capital gains (losses) and after-tax net foreign exchange income (expense) as the following reconciliation displays:
|
Three Months Ended September 30, |
|
NIne Months Ended September 30, |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
| (Dollars in thousands, except per share amounts) |
2021 |
2020 |
|
2021 |
2020 |
|||||||||||||||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||||||||||||||||||
| Per Diluted | Per Diluted | |||||||||||||||||||||||||||||||
| Amount | Share | Amount | Share | Amount | Share | Amount | Share | |||||||||||||||||||||||||
| Net income (loss) |
$ |
(73,468 |
) |
$ |
(1.88 |
) |
$ |
243,057 |
$ |
6.07 |
$ |
948,376 |
$ |
23.72 |
$ |
450,549 |
$ |
11.18 |
||||||||||||||
| After-tax net realized capital gains (losses) |
$ |
(2,591 |
) |
$ |
(0.07 |
) |
$ |
88,911 |
$ |
2.22 |
$ |
111,196 |
$ |
2.78 |
$ |
67,067 |
$ |
1.66 |
||||||||||||||
| After-tax net foreign exchange income (expense) |
$ |
(18,314 |
) |
$ |
(0.47 |
) |
$ |
57,157 |
$ |
1.43 |
$ |
42,526 |
$ |
1.06 |
$ |
39,233 |
$ |
0.97 |
||||||||||||||
| After-tax operating income (loss) |
$ |
(52,563 |
) |
$ |
(1.34 |
) |
$ |
96,989 |
$ |
2.42 |
$ |
794,654 |
$ |
19.87 |
$ |
344,249 |
$ |
8.54 |
||||||||||||||
| (Some amounts may not reconcile due to rounding.) | ||||||||||||||||||||||||||||||||
Although net realized capital gains (losses) and net foreign exchange income (expense) are an integral part of the Company’s insurance operations, the determination of net realized capital gains (losses) and foreign exchange income (expense) is independent of the insurance underwriting process. The Company believes that the level of net realized capital gains (losses) and net foreign exchange income (expense) for any particular period is not indicative of the performance of the underlying business in that particular period. Providing only a GAAP presentation of net income (loss) makes it more difficult for users of the financial information to evaluate the Company’s success or failure in its basic business and may lead to incorrect or misleading assumptions and conclusions. The Company understands that the equity analysts who follow the Company focus on after-tax operating income (loss) in their analyses for the reasons discussed above. The Company provides after-tax operating income (loss) to investors so that they have what management believes to be a useful supplement to GAAP information concerning the Company’s performance.
--Financial Details Follow--
| EVEREST RE GROUP, LTD. | |||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
| AND COMPREHENSIVE INCOME (LOSS) | |||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||
|
September 30, |
|
September 30, |
|||||||||
| (Dollars in thousands, except per share amounts) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
| (unaudited) | (unaudited) | ||||||||||
| REVENUES: | |||||||||||
| Premiums earned |
$ |
2,656,403 |
$ |
2,205,811 |
$ |
7,602,640 |
$ |
6,285,030 |
|||
| Net investment income |
|
292,759 |
|
234,233 |
|
960,267 |
|
420,116 |
|||
| Net realized capital gains (losses): | |||||||||||
| Credit allowances on fixed maturity securities |
|
(7,329) |
|
6,196 |
|
(30,234) |
|
(19,641) |
|||
| Other net realized capital gains (losses) |
|
3,107 |
|
104,007 |
|
169,023 |
|
103,904 |
|||
| Total net realized capital gains (losses) |
|
(4,222) |
|
110,203 |
|
138,789 |
|
84,263 |
|||
| Other income (expense) |
|
(19,517) |
|
59,937 |
|
44,190 |
|
47,306 |
|||
| Total revenues |
|
2,925,423 |
|
2,610,184 |
|
8,745,886 |
|
6,836,715 |
|||
| CLAIMS AND EXPENSES: | |||||||||||
| Incurred losses and loss adjustment expenses |
|
2,274,301 |
|
1,736,210 |
|
5,571,861 |
|
4,574,066 |
|||
| Commission, brokerage, taxes and fees |
|
564,335 |
|
445,332 |
|
1,611,095 |
|
1,360,170 |
|||
| Other underwriting expenses |
|
141,150 |
|
138,875 |
|
424,225 |
|
385,865 |
|||
| Corporate expenses |
|
17,817 |
|
10,618 |
|
46,363 |
|
29,184 |
|||
| Interest, fees and bond issue cost amortization expense |
|
15,539 |
|
6,641 |
|
46,785 |
|
21,477 |
|||
| Total claims and expenses |
|
3,013,142 |
|
2,337,676 |
|
7,700,329 |
|
6,370,762 |
|||
| INCOME (LOSS) BEFORE TAXES |
|
(87,719) |
|
272,508 |
|
1,045,557 |
|
465,953 |
|||
| Income tax expense (benefit) |
|
(14,251) |
|
29,451 |
|
97,181 |
|
15,404 |
|||
| NET INCOME (LOSS) |
$ |
(73,468) |
$ |
243,057 |
$ |
948,376 |
$ |
450,549 |
|||
| Other comprehensive income (loss), net of tax: | |||||||||||
| Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period |
|
(100,021) |
|
63,480 |
|
(304,465) |
|
335,835 |
|||
| Reclassification adjustment for realized losses (gains) included in net income (loss) |
|
(1,388) |
|
(11,453) |
|
(3,464) |
|
12,689 |
|||
| Total URA(D) on securities arising during the period |
|
(101,409) |
|
52,027 |
|
(307,929) |
|
348,524 |
|||
| Foreign currency translation adjustments |
|
(53,599) |
|
60,628 |
|
(28,886) |
|
30,390 |
|||
| Reclassification adjustment for amortization of net (gain) loss included in net income (loss) |
|
1,563 |
|
1,806 |
|
5,649 |
|
4,532 |
|||
| Total benefit plan net gain (loss) for the period |
|
1,563 |
|
1,806 |
|
5,649 |
|
4,532 |
|||
| Total other comprehensive income (loss), net of tax |
|
(153,445) |
|
114,461 |
|
(331,166) |
|
383,446 |
|||
| COMPREHENSIVE INCOME (LOSS) |
$ |
(226,913) |
$ |
357,518 |
$ |
617,210 |
$ |
833,995 |
|||
| EARNINGS PER COMMON SHARE: | |||||||||||
| Basic |
$ |
(1.88) |
$ |
6.08 |
$ |
23.74 |
$ |
11.20 |
|||
| Diluted |
|
(1.88) |
|
6.07 |
|
23.72 |
|
11.18 |
|||
| EVEREST RE GROUP, LTD. | |||||
| CONSOLIDATED BALANCE SHEETS | |||||
| September 30, | December 31, | ||||
| (Dollars and share amounts in thousands, except par value per share) |
|
2021 |
|
2020 |
|
| (unaudited) | |||||
| ASSETS: | |||||
| Fixed maturities - available for sale, at market value |
$ |
21,623,119 |
$ |
20,040,173 |
|
| (amortized cost: 2021, $21,182,756; 2020, $19,225,067, credit allowances: 2021, ($31,980); 2020, ($1,745)) | |||||
| Equity securities, at fair value |
|
1,523,595 |
|
1,472,236 |
|
| Short-term investments (cost: 2021, $713,144; 2020, $1,135,088) |
|
713,144 |
|
1,134,950 |
|
| Other invested assets |
|
2,855,372 |
|
2,012,581 |
|
| Cash |
|
1,068,441 |
|
801,651 |
|
| Total investments and cash |
|
27,783,671 |
|
25,461,591 |
|
| Accrued investment income |
|
170,364 |
|
141,304 |
|
| Premiums receivable |
|
3,408,338 |
|
2,680,562 |
|
| Reinsurance recoverables |
|
2,215,380 |
|
1,994,555 |
|
| Funds held by reinsureds |
|
811,269 |
|
716,655 |
|
| Deferred acquisition costs |
|
797,735 |
|
622,053 |
|
| Prepaid reinsurance premiums |
|
552,468 |
|
412,015 |
|
| Income taxes net recoverable |
|
- |
|
17,253 |
|
| Other assets |
|
866,872 |
|
742,369 |
|
| TOTAL ASSETS |
$ |
36,606,097 |
$ |
32,788,357 |
|
| LIABILITIES: | |||||
| Reserve for losses and loss adjustment expenses |
|
18,956,953 |
|
16,398,997 |
|
| Future policy benefit reserve |
|
36,533 |
|
37,723 |
|
| Unearned premium reserve |
|
4,421,098 |
|
3,501,359 |
|
| Funds held under reinsurance treaties |
|
18,279 |
|
15,807 |
|
| Other net payable to reinsurers |
|
485,682 |
|
294,347 |
|
| Losses in course of payment |
|
150,784 |
|
127,971 |
|
| Senior notes due 6/1/2044 |
|
397,284 |
|
397,194 |
|
| Senior notes due 10/1/2050 |
|
979,915 |
|
979,524 |
|
| Long term notes due 5/1/2067 |
|
223,749 |
|
223,674 |
|
| Borrowings from FHLB |
|
310,000 |
|
310,000 |
|
| Accrued interest on debt and borrowings |
|
23,267 |
|
10,460 |
|
| Unsettled securities payable |
|
83,626 |
|
206,693 |
|
| Income taxes net payable |
|
4,074 |
|
- |
|
| Other liabilities |
|
536,218 |
|
558,432 |
|
| Total liabilities |
|
26,627,462 |
|
23,062,181 |
|
| SHAREHOLDERS' EQUITY: | |||||
| Preferred shares, par value: $0.01; 50,000 shares authorized; | |||||
| no shares issued and outstanding |
|
- |
|
- |
|
| Common shares, par value: $0.01; 200,000 shares authorized; (2021) 69,806 | |||||
| and (2020) 69,620 outstanding before treasury shares |
|
698 |
|
696 |
|
| Additional paid-in capital |
|
2,266,342 |
|
2,245,301 |
|
| Accumulated other comprehensive income (loss), net of deferred income tax expense | |||||
| (benefit) of $44,338 at 2021 and $80,451 at 2020 |
|
203,733 |
|
534,899 |
|
| Treasury shares, at cost; 30,427 shares (2021) and 29,636 shares (2020) |
|
(3,822,235) |
|
(3,622,172) |
|
| Retained earnings |
|
11,330,097 |
|
10,567,452 |
|
| Total shareholders' equity |
|
9,978,635 |
|
9,726,176 |
|
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
36,606,097 |
$ |
32,788,357 |
|
| EVEREST RE GROUP, LTD. | |||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
| Nine Months Ended | |||||
| September 30, | |||||
| (Dollars in thousands) |
|
2021 |
|
2020 |
|
| (unaudited) | |||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
| Net income (loss) |
$ |
948,376 |
$ |
450,549 |
|
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||
| Decrease (increase) in premiums receivable |
|
(736,614) |
|
(357,162) |
|
| Decrease (increase) in funds held by reinsureds, net |
|
(92,512) |
|
(53,878) |
|
| Decrease (increase) in reinsurance recoverables |
|
(230,593) |
|
(172,454) |
|
| Decrease (increase) in income taxes |
|
57,270 |
|
184,311 |
|
| Decrease (increase) in prepaid reinsurance premiums |
|
(146,639) |
|
(7,963) |
|
| Increase (decrease) in reserve for losses and loss adjustment expenses |
|
2,576,049 |
|
1,665,982 |
|
| Increase (decrease) in future policy benefit reserve |
|
(1,189) |
|
(2,218) |
|
| Increase (decrease) in unearned premiums |
|
927,524 |
|
392,904 |
|
| Increase (decrease) in other net payable to reinsurers |
|
198,954 |
|
68,784 |
|
| Increase (decrease) in losses in course of payment |
|
23,661 |
|
132,208 |
|
| Change in equity adjustments in limited partnerships |
|
(543,401) |
|
(12,475) |
|
| Distribution of limited partnership income |
|
105,571 |
|
55,576 |
|
| Change in other assets and liabilities, net |
|
(247,615) |
|
(131,224) |
|
| Non-cash compensation expense |
|
33,199 |
|
29,337 |
|
| Amortization of bond premium (accrual of bond discount) |
|
57,289 |
|
32,594 |
|
| Net realized capital (gains) losses |
|
(138,789) |
|
(84,263) |
|
| Net cash provided by (used in) operating activities |
|
2,790,541 |
|
2,190,608 |
|
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
| Proceeds from fixed maturities matured/called - available for sale, at market value |
|
2,756,963 |
|
1,781,821 |
|
| Proceeds from fixed maturities sold - available for sale, at market value |
|
883,149 |
|
1,390,747 |
|
| Proceeds from fixed maturities sold - available for sale, at fair value |
|
- |
|
2,054 |
|
| Proceeds from equity securities sold, at fair value |
|
578,894 |
|
329,750 |
|
| Distributions from other invested assets |
|
216,573 |
|
210,527 |
|
| Cost of fixed maturities acquired - available for sale, at market value |
|
(5,670,636) |
|
(3,874,890) |
|
| Cost of equity securities acquired, at fair value |
|
(507,862) |
|
(460,953) |
|
| Cost of other invested assets acquired |
|
(604,180) |
|
(392,650) |
|
| Net change in short-term investments |
|
422,643 |
|
(804,744) |
|
| Net change in unsettled securities transactions |
|
(177,259) |
|
89,064 |
|
| Net cash provided by (used in) investing activities |
|
(2,101,715) |
|
(1,729,274) |
|
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
| Common shares issued during the period for share-based compensation, net of expense |
|
(12,156) |
|
(13,617) |
|
| Purchase of treasury shares |
|
(200,064) |
|
(200,020) |
|
| Dividends paid to shareholders |
|
(185,731) |
|
(187,110) |
|
| Cost of debt repurchase |
|
- |
|
(10,647) |
|
| FHLB borrowings (repayments) |
|
- |
|
90,000 |
|
| Cost of shares withheld on settlements of share-based compensation awards |
|
(15,133) |
|
(15,298) |
|
| Net cash provided by (used in) financing activities |
|
(413,084) |
|
(336,691) |
|
| EFFECT OF EXCHANGE RATE CHANGES ON CASH |
|
(8,952) |
|
6,203 |
|
| Net increase (decrease) in cash |
|
266,790 |
|
130,845 |
|
| Cash, beginning of period |
|
801,651 |
|
808,036 |
|
| Cash, end of period |
$ |
1,068,441 |
$ |
938,881 |
|
| SUPPLEMENTAL CASH FLOW INFORMATION: | |||||
| Income taxes paid (recovered) |
$ |
39,767 |
$ |
(169,149) |
|
| Interest paid |
|
33,422 |
|
16,731 |
|
Media: Dawn Lauer
Chief Communications Officer
Everest Global Services, Inc.
908.300.7670
Investors: Jon Levenson
Head of Investor Relations
Everest Global Services, Inc.
908.604.3169