EG 8-K
Everest Group, Ltd. (EG)
8-K
2022-07-27
For: 2022-07-27
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 July 27, 2022, the registrant issued a news release announcing its second quarter 2022 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 net 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 July 27, 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: July 27, 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: Matt Rohrmann
Chief Communications Officer Head of Investor Relations
Everest Global Services, Inc. Everest Global Services, Inc.
908.300.7670 908.604.7343
Everest Re Group Reports Second Quarter 2022 Results
$386 Million of Net Operating Income and 15.3% Annualized Operating ROE
$123 Million of Net Income and 91.8% Combined Ratio
HAMILTON, Bermuda -- (BUSINESS WIRE) – July 27, 2022 – Everest Re Group, Ltd. (“Everest” or the
“Group”) today reported its second quarter 2022 results.
Second Quarter 2022 Highlights
●
$386 Million of Net Operating Income, 15.3% annualized Operating ROE, and Net Income of
$123 Million
●
$3.4 billion in gross written premium (“GWP”) with year over year growth of 8.1% for the Group
(10.3% in constant dollars), 19.6% for Insurance (20.5% in constant dollars), and 2.5% for
Reinsurance (5.2% in constant dollars)
●
Combined ratios of 91.8% for the Group, 91.8% for Reinsurance and 91.5% for Insurance
●
Attritional combined ratios of 87.2% for the Group, 86.0% for Reinsurance and 90.2% for
Insurance
●
Pre-tax underwriting income of $240 million including $85 million of catastrophe losses net of
recoveries and reinstatement premiums. Catastrophe events comprised of South Africa flood
losses, Canadian and European storms, and 2Q events in the United States
●
Everest posted a $45M estimate for the Russia/Ukraine war. We have limited direct exposure to
the Russia/Ukraine war but, significant uncertainty regarding market and industry losses remains
●
Net investment income of $226 million, balanced between fixed income and a strong alternative
investments performance
2
Everest Re Group President & CEO Juan C. Andrade commented on the Company’s results:
“Everest’s solid second quarter results reflect the successful execution of our strategy with strong
momentum across our key performance objectives. Our focus on underwriting profitability and operational
efficiency, supported by our investment portfolio delivered $386 million in net operating income and a
$15.3% operating ROE. We expanded margins across our insurance and reinsurance businesses with
disciplined growth, continued to scale our insurance platform and in reinsurance capitalized on strategic
market opportunities that improved the diversity and economics of our book, while reducing volatility.
Everest’s breadth of global talent, disciplined underwriting and market leadership provide strength and
stability to our customers in the increasingly complex environment. Entering the second half of the year,
we are well-positioned to continue executing our strategy and providing attractive shareholder returns.”
Summary of Second Quarter 2022 Net Income and Other Items
●
Net income of $123 million, equal to $3.11 per diluted share vs. second quarter 2021 net income of
$680 million, equal to $16.95 per diluted share
●
Net operating income of $386 million, equal to $9.79 per diluted share vs. second quarter 2021 net
operating income of $587 million, equal to $14.63 per diluted share
●
GAAP combined ratio of 91.8% including 2.9 points of catastrophe losses vs. the second quarter
2021 figures of 89.3% including 1.8 points of catastrophe losses
●
Operating cashflow for the quarter of $715 million vs. the second quarter 2021 figure of $724
million
The following table summarizes the Company’s net income and related financial metrics.
Net income and operating income
Q2
Year to Date
Q2
Year to Date
All values in USD millions except for per share amounts
2022
2022
2021
2021
Everest Re Group
Net income
123
420
680
1,022
Net operating income (loss)
386
792
587
847
Net income per diluted common share
3.11
10.67
16.95
25.47
Net operating income per diluted common share
9.79
20.10
14.63
21.12
Net income annualized return on average equity
4.8%
8.4%
28.4%
21.6%
Net operating income annualized return on average equity
15.3%
15.8%
24.5%
17.9%
Notes
1/ Refer to the reconciliation of net income to net operating income found on page 6 of this press release
3
Equity and Book Value per Share
Q2
Year to Date
Q2
Year to Date
All values in USD millions except for per share amounts
2022
2022
2021
2021
Beginning shareholders' equity
9,528
10,139
9,683
9,726
Net income
123
420
680
1,022
Change- unrealized gains (losses) - Fixed inc. investments
(717)
(1,528)
86
(207)
Dividends to shareholders
(65)
(126)
(62)
(124)
Purchase of treasury shares
-
(1)
(17)
(40)
Other
(16)
(52)
47
40
Ending shareholders' equity
8,853
8,853
10,417
10,417
Common shares outstanding
39.42
40.02
Book value per common share outstanding
224.59
260.32
Less: Unrealized on fixed inc. investments ("URAD")
(32.68)
12.93
Book value excl. URAD per common share outstanding
257.27
247.39
Change in BVPS adjusted for dividends
-11.8%
Total Shareholder Return ("TSR") - Annualized
6.6%
Common share dividends paid - last 12 months
6.30
6.20
The following information summarizes the Company’s underwriting results, on a consolidated basis and by
segment – Reinsurance and Insurance, with selected commentary on results by segment.
Underwriting information - Everest Re Group
Q2
Year to Date
Q2
Year to Date
Year on Year Change
All values in USD millions except for percentages
2022
2022
2021
2021
Q2
Year to Date
Gross written premium
3,447
6,633
3,190
6,122
8.1%
8.4%
Net written premium
3,022
5,834
2,809
5,363
7.5%
8.8%
Loss ratio
64.3%
64.2%
62.0%
66.7%
Commission and brokerage ratio
21.6%
21.6%
21.8%
21.2%
Other underwriting expenses
5.8%
5.8%
5.5%
5.7%
Combined ratio
91.8%
91.7%
89.3%
93.6%
Attritional combined ratio
87.2%
87.3%
87.6%
87.4%
Pre-tax net catastrophe losses
85
200
45
305
Pre-tax net covid losses
-
-
-
-
Pre-tax net Russian / Ukraine War losses
45
45
-
-
Pre-tax net prior year reserve development
(1)
(2)
(3)
(4)
Notes
1/ Attritional combined ratio excludes catastrophe losses, reinstatement premiums, prior year development, Covid-19 losses, CECL, and losses from the
Russian/Ukraine war.
2/Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums
4
Reinsurance Segment – Quarterly Highlights
●
Gross written premiums of $2.2 billion for the quarter. The June 1 and July 1 renewals were
successful as we continue to write a stronger, less volatile, more diversified, and more profitable
book of business.
●
Improved risk-adjusted profitability of the portfolio driven by targeted underwriting actions,
resulting in a 30-basis point improvement in the attritional loss ratio for the quarter vs. the prior year
(58.8% vs. 59.1%) and an attritional combined ratio of 86.0%
●
Continued expense discipline resulting in an operating expense ratio for the quarter of 2.4%, and a
combined ratio of 91.8%
Underwriting information - Reinsurance segment
Q2
Year to Date
Q2
Year to Date
Year on Year Change
All values in USD millions except for percentages
2022
2022
2021
2021
Q2
Year to Date
Gross written premium
2,201
4,387
2,148
4,207
2.5%
4.3%
Net written premium
2,122
4,204
2,060
3,973
3.0%
5.8%
Loss ratio
64.6%
64.4%
60.8%
66.0%
Commission and brokerage ratio
24.8%
24.8%
24.6%
23.8%
Other underwriting expenses
2.4%
2.4%
2.5%
2.7%
Combined ratio
91.8%
91.6%
87.9%
92.5%
Attritional combined ratio
86.0%
86.1%
86.1%
85.8%
Pre-tax net catastrophe losses
80
190
35
248
Pre-tax net covid losses
-
-
-
-
Pre-tax net Russian / Ukraine War losses
45
45
-
-
Pre-tax net prior year reserve development
(1)
(2)
(1)
(3)
Notes
1/ Attritional combined ratio excludes catastrophe losses, reinstatement premiums, prior year development, Covid-19 losses, CECL, and losses from the
Russian/Ukraine war.
2/Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums
Insurance Segment – Quarterly Highlights
●
Gross written premiums of $1.2 billion reflecting a 19.6% increase year over year, driven by balanced and
diversified growth across most lines of business and geographies, partially offset by our continued focus to
reduce exposure in property CAT
●
Excellent profitability with a 91.5% combined ratio and 90.2% attritional combined ratio (a 1.9
points improvement compared to 2Q 2021)
●
Rate increases remain solid and above loss trend
5
Underwriting information - Insurance segment
Q2
Year to Date
Q2
Year to Date
Year on Year Change
All values in USD millions except for percentages
2022
2022
2021
2021
Q2
Year to Date
Gross written premium
1,246
2,247
1,042
1,914
19.6%
17.4%
Net written premium
899
1,630
749
1,390
20.0%
17.2%
Loss ratio
63.6%
63.9%
65.6%
68.7%
Commission and brokerage ratio
12.8%
12.7%
13.3%
13.2%
Other underwriting expenses
15.1%
15.2%
14.6%
14.8%
Combined ratio
91.5%
91.7%
93.5%
96.7%
Attritional combined ratio
90.2%
90.6%
92.1%
92.2%
Pre-tax net catastrophe losses
5
10
10
58
Pre-tax net covid losses
-
-
-
-
Pre-tax net Russian / Ukraine War losses
-
-
-
-
Pre-tax net prior year reserve development
-
1
(1)
(1)
Notes
1/ Attritional combined ratio excludes catastrophe losses, reinstatement premiums, prior year development, Covid-19 losses, CECL, and losses from the
Russian/Ukraine war.
2/Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums
Investments and Shareholders’ Equity at June 30, 2022
●
Total invested assets and cash of $28.7 billion versus the year end 2021 value of $29.7 billion
●
Shareholders’ equity of $8.9 billion vs. $10.1 billion at year end 2021, largely driven by $1.5 billion of
unrealized net losses on fixed maturity investments
●
Book value per diluted share of $224.59 vs. $258.21 at year end 2021
●
Book value per diluted share excluding unrealized gains (losses) on fixed maturity investments of $257.27 vs.
$252.12 at year end 2021
●
Common share dividends declared and paid in the quarter of $1.65 per share equal to $65 million
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.
6
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 results will be held at 8:00 a.m. Eastern Time on July 28, 2022. The call will
be available on the Internet through the Company’s web site at everestre.com/investors.
Recipients are encouraged to visit the Company’s web site to view supplemental financial information on the
Company’s results. The supplemental information is located at www.everestre.com in the
“Investors/Financials/Quarterly Results” section of the website. The supplemental financial information may
also be obtained by contacting the Company directly.
_______________________________________________
The Company generally uses after-tax operating income (loss), a non-GAAP financial measure, to evaluate its
performance. After-tax operating income (loss) consists of net income (loss) excluding after-tax net gains (losses)
on investments and after-tax net foreign exchange income (expense) as the following reconciliation displays:
Three Months Ended June 30,
Six Months Ended June 30,
(Dollars in thousands, except per share amounts)
2022
2021
2022
2021
(unaudited)
(unaudited)
Per Diluted
Per Diluted
Per Diluted
Per Diluted
Amount
Share
Amount
Share
Amount
Share
Amount
Share
Net income (loss)
$122,630
$3.11
$679,982
$16.95
$420,381
$10.67
$1,021,844
$25.47
After-tax net gains (losses) on investments
($189,060)
($4.79)
$83,752
$2.09
($312,429)
($7.93)
$113,787
$2.84
After-tax net foreign exchange income (expense)
($74,217)
($1.88)
$9,222
$0.23
($58,879)
($1.49)
$60,840
$1.52
After-tax operating income (loss)
$385,907
$9.79
$587,008
$14.63
$791,689
$20.10
$847,217
$21.12
(Some amounts may not reconcile due to rounding.)
Although net gains (losses) on investments and net foreign exchange income (expense) are an integral part of the
Company’s insurance operations, the determination of net gains (losses) on investments and foreign exchange income
(expense) is independent of the insurance underwriting process. The Company believes that the level of net gains
(losses) on investments and net foreign exchange income (expense) for any particular period is not
7
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--
8
EVEREST RE GROUP, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
Three Months Ended
Six Months Ended
June 30,
June 30,
(Dollars in thousands, except per share amounts)
2022
2021
2022
2021
(unaudited)
(unaudited)
REVENUES:
Premiums earned
$2,916,237
$2,558,372
$5,708,003
$4,946,237
Net investment income
225,978
407,095
468,808
667,508
Net gains (losses) on investments:
Credit allowances on fixed maturity securities
(1,490)
(15,927)
(13,343)
(22,904)
Gains (losses) from fair value adjustments
(188,924)
103,525
(325,784)
132,581
Net realized gains (losses) from dispositions
(45,851)
16,511
(50,765)
33,334
Total net gains (losses) on investments
(236,265)
104,109
(389,892)
143,011
Other income (expense)
(71,337)
7,114
(55,977)
63,707
Total revenues
2,834,613
3,076,690
5,730,942
5,820,463
CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses
1,876,247
1,586,141
3,666,110
3,297,560
Commission, brokerage, taxes and fees
630,294
557,749
1,235,523
1,046,760
Other underwriting expenses
169,533
140,844
330,826
283,075
Corporate expenses
15,018
16,168
29,038
28,546
Interest, fees and bond issue cost amortization expense
24,398
15,607
48,476
31,246
Total claims and expenses
2,715,490
2,316,509
5,309,973
4,687,187
INCOME (LOSS) BEFORE TAXES
119,123
760,181
420,969
1,133,276
Income tax expense (benefit)
(3,507)
80,199
588
111,432
NET INCOME (LOSS)
$122,630
$679,982
$420,381
$1,021,844
Other comprehensive income (loss), net of tax:
Unrealized appreciation (depreciation) ("URA(D)") on securities arising
during the period
(732,364)
84,171
(1,547,540)
(204,444)
Reclassification adjustment for realized losses (gains) included in net
income (loss)
15,841
1,590
20,019
(2,076)
Total URA(D) on securities arising during the period
(716,523)
85,761
(1,527,521)
(206,520)
Foreign currency translation adjustments
(28,269)
34,295
(62,371)
24,713
Reclassification adjustment for amortization of net (gain) loss included in
net income (loss)
758
2,043
1,515
4,086
Total benefit plan net gain (loss) for the period
758
2,043
1,515
4,086
Total other comprehensive income (loss), net of tax
(744,034)
122,099
(1,588,377)
(177,721)
COMPREHENSIVE INCOME (LOSS)
$(621,404)
$802,081
$(1,167,996)
$844,123
EARNINGS PER COMMON SHARE:
Basic
$3.11
$16.97
$10.67
$25.50
Diluted
3.11
16.95
10.67
25.47
9
EVEREST RE GROUP, LTD.
CONSOLIDATED BALANCE SHEETS
June 30,
December 31,
(Dollars and share amounts in thousands, except par value per share)
2022
2021
(unaudited)
ASSETS:
Fixed maturities - available for sale, at fair value
$21,880,443
$22,308,272
(amortized cost: 2022, $23,408,417; 2021, $22,063,592, credit allowances: 2022, ($42,714); 2021,
($29,738))
Fixed maturities - held to maturity, at amortized cost, net of credit allowances
(fair value: 2022, $71,245, credit allowances: 2022, ($366))
71,390
-
Equity securities, at fair value
1,299,221
1,825,908
Short-term investments (cost: 2022, $300,854; 2021, $1,178,386)
300,840
1,178,337
Other invested assets
3,055,356
2,919,965
Cash
2,116,049
1,440,861
Total investments and cash
28,723,299
29,673,343
Accrued investment income
178,123
149,105
Premiums receivable
3,406,564
3,293,598
Reinsurance recoverables
2,096,968
2,053,354
Funds held by reinsureds
909,454
868,601
Deferred acquisition costs
836,496
872,289
Prepaid reinsurance premiums
562,550
515,445
Income taxes
336,646
2,381
Other assets
857,550
757,167
TOTAL ASSETS
$37,907,650
$38,185,283
LIABILITIES:
Reserve for losses and loss adjustment expenses
19,993,054
19,009,486
Future policy benefit reserve
33,580
35,669
Unearned premium reserve
4,681,010
4,609,634
Funds held under reinsurance treaties
12,658
18,391
Other net payable to reinsurers
492,556
449,723
Losses in course of payment
79,549
260,684
Senior notes
2,346,495
2,345,800
Long term notes
223,824
223,774
Borrowings from FHLB
519,000
519,000
Accrued interest on debt and borrowings
16,664
17,348
Unsettled securities payable
66,150
16,698
Other liabilities
590,244
539,896
Total liabilities
29,054,784
28,046,103
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; (2022) 69,947
and (2021) 69,790 outstanding before treasury shares
700
698
Additional paid-in capital
2,283,513
2,274,431
Accumulated other comprehensive income (loss), net of deferred income tax expense
(benefit) of ($208,066) at 2022 and $26,781 at 2021
(1,576,854)
11,523
Treasury shares, at cost; 30,529 (2022) and 30,524 shares (2021)
(3,848,630)
(3,847,308)
Retained earnings
11,994,137
11,699,836
Total shareholders' equity
8,852,866
10,139,180
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$37,907,650
$38,185,283
10
EVEREST RE GROUP, LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended
June 30,
(Dollars in thousands)
2022
2021
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
$420,381
$1,021,844
Adjustments to reconcile net income to net cash provided by operating activities:
Decrease (increase) in premiums receivable
(223,030)
(499,647)
Decrease (increase) in funds held by reinsureds, net
(51,451)
(79,485)
Decrease (increase) in reinsurance recoverables
(236,849)
15,836
Decrease (increase) in income taxes
(100,230)
76,452
Decrease (increase) in prepaid reinsurance premiums
(109,716)
(71,566)
Increase (decrease) in reserve for losses and loss adjustment expenses
1,360,076
1,139,879
Increase (decrease) in future policy benefit reserve
(2,089)
(1,226)
Increase (decrease) in unearned premiums
176,631
500,077
Increase (decrease) in other net payable to reinsurers
119,858
72,850
Increase (decrease) in losses in course of payment
(178,091)
70,653
Change in equity adjustments in limited partnerships
(156,868)
(377,120)
Distribution of limited partnership income
105,452
49,053
Change in other assets and liabilities, net
(11,031)
(206,994)
Non-cash compensation expense
23,919
22,439
Amortization of bond premium (accrual of bond discount)
35,052
37,928
Net (gains) losses on investments
389,892
(143,011)
Net cash provided by (used in) operating activities
1,561,906
1,627,962
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from fixed maturities matured/called/repaid - available for sale
1,661,128
1,897,536
Proceeds from fixed maturities matured/called/repaid - held to maturity
333
-
Proceeds from fixed maturities sold - available for sale
772,148
599,737
Proceeds from equity securities sold, at fair value
437,815
474,663
Distributions from other invested assets
204,790
112,398
Cost of fixed maturities acquired - available for sale
(4,070,949)
(3,949,973)
Cost of fixed maturities acquired - held to maturity
(72,061)
-
Cost of equity securities acquired, at fair value
(283,352)
(360,016)
Cost of other invested assets acquired
(307,525)
(309,691)
Net change in short-term investments
878,360
506,285
Net change in unsettled securities transactions
22,512
(103,527)
Net cash provided by (used in) investing activities
(756,801)
(1,132,588)
CASH FLOWS FROM FINANCING ACTIVITIES:
Common shares issued during the period for share-based compensation, net of expense
(14,835)
(11,349)
Purchase of treasury shares
(1,322)
(40,328)
Dividends paid to shareholders
(126,079)
(124,274)
Cost of shares withheld on settlements of share-based compensation awards
(17,352)
(13,713)
Net cash provided by (used in) financing activities
(159,588)
(189,664)
EFFECT OF EXCHANGE RATE CHANGES ON CASH
29,671
(1,016)
Net increase (decrease) in cash
675,188
304,694
Cash, beginning of period
1,440,861
801,651
Cash, end of period
$2,116,049
$1,106,345
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid (recovered)
$100,506
$34,780
Interest paid
31,835
31,695