EG 8-K
Everest Group, Ltd. (EG)
8-K
2022-02-09
For: 2022-02-09
View Original
Added on
April 08, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
Current Report Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
(Exact name of registrant as specified in its charter)
(State or other jurisdiction
(Commission
(IRS Employer
of incorporation)
File Number)
Identification No.)
,
Not Applicable
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code
-
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
Class
Trading Symbol(s)
Name of Exchange where registered
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of
1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 12(a) of the Exchange Act.
☐
ITEM 2.02
DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On February 9, 2022, the registrant issued a news release announcing its fourth quarter 2021 results. A copy of that
news release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
The news release furnished herewith contains information regarding the registrant’s operating income (loss).
Operating income (loss) differs from net income (loss) attributable to Everest Re Group, the most directly comparable
generally accepted accounting principle financial measure, by the exclusion of realized capital gains (losses) on
investments and net foreign exchange income (expense). Management believes that presentation of operating income
(loss) provides useful information to investors because it more accurately measures and predicts the registrant’s
results of operations by removing the variability arising from both the management of the registrant’s investment
portfolio and the fluctuations of foreign currency exchange rates. In addition, management, analysts and investors use
operating income (loss) to evaluate the financial performance of the registrant and the insurance industry in general.
In accordance with general instruction B.2 of Form 8-K, the information in this report, including exhibits, is furnished
pursuant to Item 2.02 and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of
1934, or otherwise subject to the liability of that section.
ITEM 9.01
FINANCIAL STATEMENTS AND EXHIBITS
(c)
Exhibits
Exhibit No.
Description
99.1
News Release of the registrant,
dated February 9, 2022
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
EVEREST RE GROUP, LTD.
By:
/S/ ROBERT J. FREILING
Robert J. Freiling
Senior Vice President and
Chief Accounting Officer
Dated: February 9, 2022
EXHIBIT INDEX
Exhibit
Number
Description of Document
Page No.
5
104
Cover Page Interactive Data File (embedded
within the Inline XBRL document
1
N
EWS
R
ELEASE
EVEREST RE GROUP, LTD.
Seon Place, 141 Front Street, 4
th
Contacts
Media: Dawn Lauer Investors: Jon Levenson
Chief Communications Officer Head of Investor Relations
Everest Global Services, Inc. Everest Global Services, Inc.
908.300.7670 908.604.3169
Everest Re Group Reports Fourth Quarter and Full Year 2021 Results
25% Growth in Gross Written Premium and a 91.9% Combined Ratio for the Quarter
$431 Million of Net Income for the Quarter and a 14.7% Total Shareholder Return for the Year
HAMILTON, Bermuda -- (BUSINESS WIRE) – February 9, 2022 – Everest Re Group, Ltd. (“Everest” or
the “Group”) today reported its fourth quarter and full year 2021 results.
Fourth Quarter 2021 Highlights
●
Year over year gross written premium (“GWP”) growth of 25% for the Group, 26% for
Reinsurance and 21% for Insurance
●
Combined ratio of 91.9% for the Group, 91.5% for Reinsurance and 92.8% for Insurance
●
Attritional combined ratios of 87.4% for the Group, 86.4% for the Reinsurance segment and 90.4%
for Insurance
●
Pre-tax underwriting income of $228 million including pre-tax catastrophe losses net of
reinsurance and reinstatement premiums of $125 million
●
Pre-tax net investment income of $205 million, well balanced between fixed income and limited
partnership returns
●
$1.0 billion in 31-year, 3.125% coupon senior notes issued on October 4, 2021
2
Full Year 2021 Highlights
●
Net income of $1.380 billion representing a total shareholder return of 14.7%
●
Pre-tax net investment income of $1.165 billion, well balanced between fixed income and limited
partnership returns
●
Pre-tax underwriting income of $224 million inclusive of pre-tax catastrophe losses net of
reinsurance and reinstatement premiums of $1.065 billion
●
$13.0 billion in total 2021 GWP. $9 billion reinsurance and $4 billion insurance
●
Year over year gross written premium (“GWP”) growth of 25% for the Group, 25% for
Reinsurance, and 24% for Insurance
●
Attritional combined ratios of 87.6% for the Group, 86.3% for the Reinsurance segment and 91.2%
for Insurance.
●
Operating cash flow of $3.8 billion
●
Common share repurchases of $25 million during the quarter and $225 million for the full year
2021
Everest Re Group President & CEO Juan C. Andrade commented on the Company’s results:
“2021 was a pivotal year of continued profitable growth and momentum for Everest. We finished the year
with a strong quarter and achieved record growth in both our underwriting businesses, drove expanding
margins, solid underwriting profitability in an elevated natural catastrophe year, and generated exceptional
investment income. These results led to $1.4 billion in net income for the year, and a milestone 14.7% total
shareholder return. 2021 demonstrated the strong earnings power of our diversified franchises to create
value for our shareholders. With a more profitable book of business coming out of a well-executed
January 1 reinsurance renewal season, an expanding global value proposition, a strong balance sheet, and
exceptional talent, we enter 2022 well-positioned to deliver on our long-term strategic objectives.”
Summary of Fourth Quarter 2021 Net Income and Other Items
●
Net income of $431 million, equal to $10.94 per diluted share vs. net income of $64 million, equal
to $1.59 per diluted share in the fourth quarter 2020
●
Net operating income $359 million, equal to $9.12 per diluted share vs. net operating income (loss)
of $(44) million, equal to $(1.12) per share in the fourth quarter 2020
●
Underwriting gain of $228 million including $125 million of catastrophe losses net of recoveries
and reinstatement premiums. Catastrophe events comprised of Canadian drought losses of $80
million and
3
quad-state tornado losses of $45 million.
●
GAAP combined ratio of 91.9% which includes 4.5 points of catastrophe losses vs. 2.9 points of
catastrophe losses in the same period during 2020
●
No change to Covid-19 Pandemic (“Pandemic”) ultimate loss provision of $511 million
●
Operating cashflow for the quarter of $1.04 billion vs $683 million in the same period during 2020.
The following table summarizes the Company’s net income and related financial metrics.
Net income and operating income
Q4
Year to Date
Q4
Year to Date
All values in USD millions except for per share
2021
2021
2020
2020
Everest Re Group
Net income
430.7
1,379.1
63.6
514.1
Net operating income (loss)
359.2
1,153.9
(44.2)
300.1
Net income per diluted common share
10.94
34.62
1.59
12.78
Net operating income per diluted common share
9.12
28.97
(1.12)
7.46
Net income annualized return on average equity
17.7%
14.6%
2.8%
5.8%
Net operating income annualized return on average equity
14.8%
12.2%
-2.0%
3.4%
Period end equity and book value
Year to Date
Shareholders' equity
10,139.2
Book value per share
258.21
Change in BVPS adjusted for dividends
8.7%
Total Shareholder Return ("TSR") - Annualized
14.7%
Notes
1/ Refer to the reconciliation of net income to net operating income found on page 8 of this press release
4
The following information summarizes the Company’s underwriting results, on a consolidated basis and by
segment – Reinsurance and Insurance, with selected commentary on results by segment.
Underwriting information - Everest Re Group
Q4
Year to Date
Q4
Year to Date
Year on Year Change
All values in USD millions except for percentages
2021
2021
2020
2020
Q4
Year to Date
Gross written premium
3,430.6
13,049.8
2,750.5
10,482.4
24.7%
24.5%
Net written premium
3,056.4
11,445.5
2,449.3
9,117.0
24.8%
25.5%
Loss ratio
64.9%
71.0%
82.5%
75.5%
Commission and brokerage ratio
21.3%
21.2%
21.4%
21.6%
Other underwriting expenses
5.7%
5.6%
5.2%
5.8%
Combined ratio
91.9%
97.8%
109.1%
102.9%
Attritional combined ratio
87.4%
87.6%
86.3%
87.5%
Pre-tax net catastrophe losses
125.0
1,065.0
70.0
415.0
Pre-tax net covid losses
-
-
76.1
511.1
Pre-tax net prior year reserve development
(3.0)
(9.1)
400.0
401.4
Notes
1/ Attritional ratios exclude prior year reserve development, Covid-19 pandemic impacts, catastrophe losses, and reinstatement premiums
2/Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums
Reinsurance Segment – Quarterly Highlights
●
Reinsurance achieved excellent growth in the quarter, up 26% year over year to $2.4 billion. The
growth was driven by continued partnership with our core clients and Everest’s position as a
preferred reinsurer, accelerated by strong underlying rate movement. Our international operations,
notably Europe, lead the growth this quarter as we saw increased demand for casualty and multi-line
quota share treaties in those territories.
●
The attritional combined ratio for the quarter of 86.4% reflects the continued strong performance of
our portfolio, the successful execution of our strategy to participate in growth and margin
improvement in the casualty market, and our continued expense discipline
●
Canada suffered a widespread drought causing one of the largest P&C losses in Canadian history,
nearly $6B USD, resulting in an $80 million net catastrophe impact to our reinsurance segment
results. Everest is a leading reinsurer in Canada, and we have profitably underwritten the Canadian
crop market for years. We view this as an attractive long-term business.
5
Underwriting information - Reinsurance segment
Q4
Year to Date
Q4
Year to Date
Year on Year Change
All values in USD millions except for percentages
2021
2021
2020
2020
Q4
Year to Date
Gross written premium
2,371.7
9,067.3
1,878.6
7,281.7
26.2%
24.5%
Net written premium
2,269.8
8,535.6
1,793.5
6,767.6
26.6%
26.1%
Loss ratio
64.8%
71.6%
86.9%
76.3%
Commission and brokerage ratio
24.1%
23.9%
23.3%
24.0%
Other underwriting expenses
2.6%
2.6%
2.2%
2.7%
Combined ratio
91.5%
98.1%
112.4%
103.0%
Attritional combined ratio
86.4%
86.3%
83.9%
85.2%
Pre-tax net catastrophe losses
110.0
912.5
60.0
347.0
Pre-tax net covid losses
-
-
56.1
407.1
Pre-tax net prior year reserve development
(3.0)
(7.9)
400.0
396.9
Notes
1/ Attritional ratios exclude prior year reserve development, Covid-19 pandemic impacts, catastrophe losses, and reinstatement premiums
2/Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums
Insurance Segment – Quarterly Highlights
●
Everest Insurance delivered strong growth during the fourth quarter of 2021, with the third
consecutive quarter of gross written premium above $1.0 billion. This growth was driven primarily
by strong new business generation, notably in casualty and professional liability lines. Exposure
growth from the economic recovery and continued double digit rate increases also contributed
meaningfully to growth in the quarter.
●
Underwriting margins improved year over year with a combined ratio of 92.8% and an attritional
combined ratio of 90.4% (the lowest achieved to date). The loss ratio, commission ratio and expense
ratio all improved year over year, reflecting disciplined execution and intentional portfolio
management
●
Insurance segment catastrophe losses totaled $15 million net of recoveries and reinstatement
premiums for the quarter, all from the quad-state tornados.
6
Underwriting information - Insurance segment
Q4
Year to Date
Q4
Year to Date
Year on Year Cgange
All values in USD millions except for percentages
2021
2021
2020
2020
Q4
Year to Date
Gross written premium
1,058.9
3,982.5
871.9
3,200.6
21.4%
24.4%
Net written premium
786.6
2,909.9
655.8
2,349.4
19.9%
23.9%
Loss ratio
65.1%
69.3%
68.9%
73.0%
Commission and brokerage ratio
13.4%
13.4%
15.6%
14.5%
Other underwriting expenses
14.4%
14.5%
14.5%
15.1%
Combined ratio
92.8%
97.1%
99.0%
102.6%
Attritional combined ratio
90.4%
91.2%
93.8%
94.2%
Pre-tax net catastrophe losses
15.0
152.5
10.0
68.0
Pre-tax net covid losses
-
-
20.0
104.0
Pre-tax net prior year reserve development
-
(1.2)
-
4.6
Notes
1/ Attritional ratios exclude prior year reserve development, Covid-19 pandemic impacts, catastrophe losses, and reinstatement premiums
2/Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums
Investments and Shareholders’ Equity
●
Total invested assets and cash of $29.7 billion at December 31, 2021 reflecting 16.5% growth versus
the year end 2020 value of $25.5 billion
●
Shareholders’ equity of $10.1 billion at December 31, 2021 vs. $9.7 billion at year end 2020
●
Book value per diluted share of $258.21 at December 31, 2021 vs. $243.25 at year end 2020
●
Book value per diluted share excluding unrealized gains (losses) on fixed income investments of
$252.12 at December 31, 2021 vs. $225.15 at year end 2020
●
Common share dividends declared and paid in the quarter of $1.55 per share equal to $61 million,
and $6.20 for the year equal to $247 million
●
Common share repurchases of $25 million during the quarter, representing 96,702 shares at an
average price of $259.28 per share. For the full year 2021, common share repurchases of $225
million representing 887,622 shares at an average price of $253.64.
7
Equity and Book Value per Share
Q4
Year to Date
Q4
Year to Date
All values in USD millions except for per share amounts
2021
2021
2020
2020
Beginning shareholders' equity
9,978.6
9,726.2
9,591.3
9,132.9
Net income
430.7
1,379.1
63.6
514.2
Change- unrealized gains (losses) - Fixed inc. investments
(176.8)
(484.8)
71.2
419.7
Dividends to shareholders
(61.0)
(246.7)
(61.9)
(249.1)
Purchase of treasury shares
(25.1)
(225.1)
-
(200.0)
Other
(7.2)
(9.5)
62.0
108.5
Ending shareholders' equity
10,139.2
10,139.2
9,726.2
9,726.2
Common shares outstanding
39.27
39.98
Book value per common share outstanding
258.21
243.25
Less: Unrealized on fixed inc. investments ("URAD")
6.09
18.10
Book value excl. URAD per common share outstanding
252.12
225.15
Common share dividends paid - last 12 months
6.20
6.20
This news release contains forward-looking statements within the meaning of the U.S. federal securities
laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-
looking statements in the U.S. Federal securities laws. These statements involve risks and uncertainties that
could cause actual results to differ materially from those contained in forward-looking statements made on
behalf of the Company. These risks and uncertainties include the impact of general economic conditions and
conditions affecting the insurance and reinsurance industry, the adequacy of our reserves, our ability to
assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition,
investment market and investment income fluctuations, trends in insured and paid losses, catastrophes,
pandemic, regulatory and legal uncertainties and other factors described in our latest Annual Report on
Form 10-K. The Company undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
About Everest Re Group, Ltd.
Everest Re Group, Ltd. (“Everest”) is a leading global provider of reinsurance and insurance, operating for
close to 50 years through subsidiaries in the U.S., Europe, Singapore, Canada, Bermuda, and other
territories.
Everest offers property, casualty, and specialty products through its various operating affiliates located in
key markets around the world.
Everest common stock (NYSE:RE) is a component of the S&P 500 index.
8
Additional information about Everest, our people, and our products can be found on our website at
www.everestre.com
. All issuing companies may not do business in all jurisdictions.
A conference call discussing the fourth quarter results will be held at 8:00 a.m. Eastern Time on February 10,
2022. The call will be available on the Internet through the Company’s web site at everestre.com/investors.
Recipients are encouraged to visit the Company’s web site to view supplemental financial information on the
Company’s results. The supplemental information is located at
www.everestre.com
“Investors/Financials/Quarterly Results” section of the website. The supplemental financial information may
also be obtained by contacting the Company directly.
_______________________________________________
The Company generally uses after-tax operating income (loss), a non-GAAP financial measure, to evaluate
its performance. After-tax operating income (loss) consists of net income (loss) excluding after-tax net
realized capital gains (losses) and after-tax net foreign exchange income (expense) as the following
reconciliation displays:
Three Months Ended December 31,
Twelve Months Ended December 31,
(Dollars in thousands, except per share amounts)
2021
2020
2021
2020
(unaudited)
(unaudited)
Per Diluted
Per Diluted
Per Diluted
Per Diluted
Amount
Share
Amount
Share
Amount
Share
Amount
Share
Net income (loss)
$430,707
$10.94
$63,601
$1.59
$1,379,083
$34.62
$514,151
$12.78
After-tax net realized capital gains (losses)
$90,306
$2.29
$149,950
$3.74
$201,503
$5.06
$217,017
$5.39
After-tax net foreign exchange income (expense)
($18,819)
($0.48)
($42,165)
($1.05)
$23,707
$0.60
($2,932)
($0.07)
After-tax operating income (loss)
$359,220
$9.12
($44,184)
($1.12)
$1,153,873
$28.97
$300,066
$7.46
(Some amounts may not reconcile due to rounding.)
Although net realized capital gains (losses) and net foreign exchange income (expense) are an integral part
of the Company’s insurance operations, the determination of net realized capital gains (losses) and foreign
exchange income (expense) is independent of the insurance underwriting process. The Company believes
that the level of net realized capital gains (losses) and net foreign exchange income (expense) for any
particular period is not indicative of the performance of the underlying business in that particular period.
Providing only a GAAP presentation of net income (loss) makes it more difficult for users of the financial
information to evaluate the Company’s success or failure in its basic business and may lead to incorrect or
misleading assumptions and conclusions. The Company understands that the equity analysts who follow the
Company focus on after-tax operating income (loss) in their analyses for the reasons discussed above. The
Company
9
useful supplement to GAAP information concerning the Company’s performance.
--Financial Details Follow--
10
EVEREST RE GROUP, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
(Dollars in thousands, except per share amounts)
2021
2020
2021
2020
(unaudited)
(unaudited)
REVENUES:
Premiums earned
$2,803,801
$2,396,483
$10,406,441
$8,681,513
Net investment income
204,625
222,349
1,164,892
642,465
Net realized capital gains (losses):
Credit allowances on fixed maturity securities
2,242
17,896
(27,992)
(1,745)
Other net realized capital gains (losses)
116,912
165,490
285,935
269,394
Total net realized capital gains (losses)
119,154
183,386
257,943
267,649
Other income (expense)
(7,203)
(40,819)
36,987
6,487
Total revenues
3,120,377
2,761,399
11,866,263
9,598,114
CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses
$1,819,392
$1,976,771
$7,391,253
$6,550,837
Commission, brokerage, taxes and fees
597,671
513,080
2,208,766
1,873,250
Other underwriting expenses
158,422
125,372
582,647
511,237
Corporate expenses
21,464
11,934
67,827
41,118
Interest, fees and bond issue cost amortization expense
23,364
14,847
70,149
36,323
Total claims and expenses
2,620,313
2,642,004
10,320,642
9,012,765
INCOME (LOSS) BEFORE TAXES
500,064
119,395
1,545,621
585,349
Income tax expense (benefit)
69,357
55,794
166,538
71,198
NET INCOME (LOSS)
$430,707
$63,601
$1,379,083
$514,151
Other comprehensive income (loss), net of tax:
Unrealized appreciation (depreciation) ("URA(D)") on securities arising
during the period
(183,914)
87,375
(488,378)
423,210
Reclassification adjustment for realized losses (gains) included in net
income (loss)
7,080
(16,165)
3,616
(3,476)
Total URA(D) on securities arising during the period
(176,834)
71,210
(484,762)
419,734
Foreign currency translation adjustments
(33,204)
55,937
(62,091)
86,327
Benefit plan actuarial net gain (loss) for the period
6,250
(5,615)
6,250
(5,615)
Reclassification adjustment for amortization of net (gain) loss included
in net income (loss)
11,579
1,768
17,228
6,300
Total benefit plan net gain (loss) for the period
17,829
(3,847)
23,478
685
Total other comprehensive income (loss), net of tax
(192,209)
123,300
(523,375)
506,746
COMPREHENSIVE INCOME (LOSS)
$238,498
$186,901
$855,708
$1,020,897
EARNINGS PER COMMON SHARE:
Basic
$10.95
$1.59
$34.66
$12.81
Diluted
10.94
1.59
34.62
12.78
11
EVEREST RE GROUP, LTD.
CONSOLIDATED BALANCE SHEETS
December 31,
December 31,
(Dollars and share amounts in thousands, except par value per share)
2021
2020
(unaudited)
ASSETS:
Fixed maturities - available for sale, at market value
($1,745))
$22,308,272
$20,040,173
Equity securities, at fair value
1,825,908
1,472,236
Short-term investments (cost: 2021, $1,178,386; 2020, $1,135,088)
1,178,337
1,134,950
Other invested assets
2,919,965
2,012,581
Cash
1,440,861
801,651
Total investments and cash
29,673,343
25,461,591
Accrued investment income
149,105
141,304
Premiums receivable
3,293,598
2,680,562
Reinsurance recoverables
2,053,354
1,994,555
Funds held by reinsureds
868,601
716,655
Deferred acquisition costs
872,289
622,053
Prepaid reinsurance premiums
515,445
412,015
Income taxes
2,381
17,253
Other assets
757,167
665,515
TOTAL ASSETS
$38,185,283
$32,711,503
LIABILITIES:
Reserve for losses and loss adjustment expenses
19,009,486
16,322,143
Future policy benefit reserve
35,669
37,723
Unearned premium reserve
4,609,634
3,501,359
Funds held under reinsurance treaties
18,391
15,807
Other net payable to reinsurers
449,723
294,347
Losses in course of payment
260,684
127,971
Senior notes
2,345,800
1,376,718
Long term notes
223,774
223,674
Borrowings from FHLB
519,000
310,000
Accrued interest on debt and borrowings
17,348
10,460
Unsettled securities payable
16,698
206,693
Other liabilities
539,896
558,432
Total liabilities
28,046,103
22,985,327
SHAREHOLDERS' EQUITY:
Preferred shares, par value: $0.01; 50,000 shares authorized;
no shares issued and outstanding
-
-
Common shares, par value: $0.01; 200,000 shares authorized; (2021) 69,790
and (2020) 69,620 outstanding before treasury shares
698
696
Additional paid-in capital
2,274,431
2,245,301
Accumulated other comprehensive income (loss), net of deferred income tax expense
(benefit) of $26,781 at 2021 and $80,451 at 2020
11,523
534,899
Treasury shares, at cost; 30,524 shares (2021) and 29,636 shares (2020)
(3,847,308)
(3,622,172)
Retained earnings
11,699,836
10,567,452
Total shareholders' equity
10,139,180
9,726,176
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$38,185,283
$32,711,503
12
EVEREST RE GROUP, LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Twelve Months Ended
December 31,
(Dollars in thousands)
2021
2020
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
$1,379,083
$514,151
Adjustments to reconcile net income to net cash provided by operating activities:
Decrease (increase) in premiums receivable
(648,735)
(387,123)
Decrease (increase) in funds held by reinsureds, net
(151,028)
(219,321)
Decrease (increase) in reinsurance recoverables
(124,796)
(150,753)
Decrease (increase) in income taxes
68,148
239,883
Decrease (increase) in prepaid reinsurance premiums
(127,792)
55,334
Increase (decrease) in reserve for losses and loss adjustment expenses
2,805,064
2,631,016
Increase (decrease) in future policy benefit reserve
(2,054)
(4,869)
Increase (decrease) in unearned premiums
1,145,512
404,049
Increase (decrease) in other net payable to reinsurers
185,764
(24,163)
Increase (decrease) in losses in course of payment
133,700
74,759
Change in equity adjustments in limited partnerships
(612,569)
(103,772)
Distribution of limited partnership income
211,367
122,326
Change in other assets and liabilities, net
(289,562)
(99,171)
Non-cash compensation expense
43,406
39,209
Amortization of bond premium (accrual of bond discount)
75,777
49,673
Net realized capital (gains) losses
(257,943)
(267,649)
Net cash provided by (used in) operating activities
3,833,342
2,873,579
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from fixed maturities matured/called - available for sale, at market value
3,892,918
2,586,405
Proceeds from fixed maturities sold - available for sale, at market value
1,915,916
1,945,867
Proceeds from fixed maturities sold - available for sale, at fair value
-
4,907
Proceeds from equity securities sold, at fair value
990,376
376,347
Distributions from other invested assets
257,233
309,912
Cost of fixed maturities acquired - available for sale, at market value
(8,825,315)
(7,189,301)
Cost of equity securities acquired, at fair value
(1,097,886)
(637,082)
Cost of other invested assets acquired
(756,560)
(557,473)
Net change in short-term investments
(42,630)
(717,527)
Net change in unsettled securities transactions
(203,016)
194,574
Net cash provided by (used in) investing activities
(3,868,964)
(3,683,371)
CASH FLOWS FROM FINANCING ACTIVITIES:
Common shares issued during the period for share-based compensation, net of expense
(14,275)
(13,566)
Purchase of treasury shares
(225,136)
(200,020)
Dividends paid to shareholders
(246,699)
(249,056)
Proceeds from issuance of senior notes
968,357
979,417
Cost of debt repurchase
-
(10,647)
Net FHLB borrowings (repayments)
209,000
310,000
Cost of shares withheld on settlements of share-based compensation awards
(17,054)
(15,908)
Net cash provided by (used in) financing activities
674,193
800,220
EFFECT OF EXCHANGE RATE CHANGES ON CASH
639
3,187
Net increase (decrease) in cash
639,210
(6,385)
Cash, beginning of period
801,651
808,036
Cash, end of period
$1,440,861
$801,651
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid (recovered)
$98,030
$(169,748)
Interest paid
62,369
33,570