HAMILTON, Bermuda--(BUSINESS WIRE)--Oct. 29, 2018--
Everest Re Group, Ltd. (NYSE: RE) today reported third quarter 2018 net
income of $205.6 million, or $5.02 per diluted common share, compared to
net loss of $639.4 million, or $15.73 per common share for the third
quarter of 2017. After-tax operating income1 was $167.5
million, or $4.09 per diluted common share, for the third quarter of
2018, compared to after-tax operating loss¹ of $623.7 million, or $15.35
per common share, for the same period last year.
For the nine months ended September 30, 2018, net income was $485.8
million, or $11.83 per diluted common share, compared to net loss of
$102.1 million, or $2.51 per common share, for the nine months ended
September 30, 2017. After-tax operating income¹ was $427.6 million, or
$10.41 per diluted common share, compared to after-tax operating loss¹
of $122.8 million or $3.03 per common share, for the same period in 2017.
Commenting on the Company’s results, President and Chief Executive
Officer, Dominic J. Addesso said, “Everest generated an annualized, net
income return on equity for the quarter of 10%, despite the previously
announced catastrophe losses. The underlying results were quite strong
with an attritional combined ratio of 85.8% year to date as a result of
our diversified portfolio.”
Effective this year, the Company changed its reporting of operating
income, a non-GAAP financial measure. Historically operating income
represented net income, excluding realized capital gains and losses and
the tax impact related to the enactment of the Tax Cuts and Jobs Act in
2017. Starting in first quarter 2018, the Company further adjusted
operating income to exclude foreign exchange gains and losses as it
believes the impact of foreign currency movements on income is not
indicative of the performance of the underlying business in a particular
period.
Operating highlights for the third quarter of 2018 included the
following:
-
Gross written premiums for the quarter were $2.2 billion, an increase
of 8% compared to the third quarter of 2017. Worldwide reinsurance
premiums were up 7% to $1.7 billion, with growth across each segment
primarily driven by increased casualty and property pro-rata premium,
rate improvement, increased shares on existing business and profitable
new opportunities. Direct insurance premiums were up 8%, from third
quarter 2017, to $517.3 million, continuing with the diversified
growth trends noted in recent years.
-
The combined ratio was 100.0% for the quarter compared to 163.6% in
the third quarter of 2017. Excluding catastrophe losses, reinstatement
premiums and the favorable prior period loss development, the current
quarter attritional combined ratio was 86.8% compared to 85.5% in the
same period last year.
-
Catastrophe losses, net of reinsurance, amounted to $240.0 million in
the quarter, primarily related to the 2018 losses from Hurricane
Florence, Typhoon Jebi, Typhoon Trami, California wildfires and Japan
floods.
-
Net investment income increased 18% for the quarter to $161.4 million.
-
Net after-tax realized gains amounted to $43.6 million and net
after-tax unrealized capital losses were $20.9 million, for the
quarter.
-
Cash flow from operations was $543.6 million for the nine months ended
September 30, 2018 compared to $1,044.2 million for the same period in
2017.
-
During the third quarter, the Company purchased 229,432 shares at a
total cost of $50.0 million. The repurchases were made pursuant to a
share repurchase authorization, provided by the Company’s Board of
Directors, under which there remains 1.4 million shares available.
-
Shareholders’ equity ended the quarter at $8.3 billion compared to
$8.4 billion at year end 2017. Book value per share was down slightly
from $204.95 at December 31, 2017 to $204.91 at September 30, 2018.
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 fluctuations, trends in insured and paid
losses, catastrophes, 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.
Everest Re Group, Ltd. is a Bermuda holding company that operates
through the following subsidiaries: Everest Reinsurance Company provides
reinsurance to property and casualty insurers in both the U.S. and
international markets. Everest Reinsurance (Bermuda), Ltd., including
through its branch in the United Kingdom, provides reinsurance and
insurance to worldwide property and casualty markets and reinsurance to
life insurers. Everest Reinsurance Company (Ireland), dac, provides
reinsurance to non-life insurers in Europe. Everest Insurance®
refers to the primary insurance operations of Everest Re Group, Ltd.,
and its affiliated companies which offer property, casualty and
specialty lines insurance on both an admitted and non-admitted basis in
the U.S. and internationally. The Company also operates within the
Lloyd's insurance market through Syndicate 2786. In addition, through
Mt. Logan Re, Ltd., the Company manages segregated accounts, capitalized
by the Company and third party investors that provide reinsurance for
property catastrophe risks. Additional information on Everest Re Group
companies can be found at the Group’s web site at www.everestregroup.com.
A conference call discussing the third quarter results will be held at
10:30 a.m. Eastern Time on October 30, 2018. The call will be available
on the Internet through the Company’s web site or at www.streetevents.com.
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.everestregroup.com
in the “Financial Reports” section of the “Investor Center”. The
supplemental financial information may also be obtained by contacting
the Company directly.
___________________________________________
1 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), after-tax net
foreign exchange income (expense), and the tax charge related to the
enactment of the Tax Cuts and Jobs Act of 2017 (TCJA), as the following
reconciliation displays:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
(Dollars in thousands, except per share amounts)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Diluted
|
|
|
|
Per
|
|
|
|
Per Diluted
|
|
|
|
Per
|
|
|
|
|
|
Common
|
|
|
|
Common
|
|
|
|
Common
|
|
|
|
Common
|
|
|
|
Amount
|
|
Share
|
|
Amount
|
|
Share
|
|
Amount
|
|
Share
|
|
Amount
|
|
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
205,613
|
|
|
$
|
5.02
|
|
|
$
|
(639,374
|
)
|
|
$
|
(15.73
|
)
|
|
$
|
485,826
|
|
$
|
11.83
|
|
$
|
(102,057
|
)
|
|
$
|
(2.51
|
)
|
|
After-tax net realized capital gains (losses)
|
|
|
43,554
|
|
|
|
1.06
|
|
|
|
28,246
|
|
|
|
0.70
|
|
|
|
34,718
|
|
|
0.85
|
|
|
78,580
|
|
|
|
1.94
|
|
|
After-tax net foreign exchange income (expense)
|
|
|
(5,435
|
)
|
|
|
(0.13
|
)
|
|
|
(43,964
|
)
|
|
|
(1.08
|
)
|
|
|
23,524
|
|
|
0.57
|
|
|
(57,789
|
)
|
|
|
(1.42
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
After-tax operating income (loss)
|
|
$
|
167,494
|
|
|
$
|
4.09
|
|
|
$
|
(623,656
|
)
|
|
$
|
(15.35
|
)
|
|
$
|
427,584
|
|
$
|
10.41
|
|
$
|
(122,848
|
)
|
|
$
|
(3.03
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Some amounts may not reconcile due to rounding.)
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
Return on equity calculations use adjusted shareholders’ equity
excluding net after-tax unrealized (appreciation) depreciation of
investments.
--Financial Details Follow--
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|
|
|
|
|
|
|
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)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
Premiums earned
|
|
$
|
1,731,479
|
|
|
$
|
1,598,875
|
|
|
$
|
5,080,724
|
|
|
$
|
4,280,653
|
|
|
Net investment income
|
|
|
161,363
|
|
|
|
136,973
|
|
|
|
440,979
|
|
|
|
393,770
|
|
|
Net realized capital gains (losses):
|
|
|
|
|
|
|
|
|
|
Other-than-temporary impairments on fixed maturity securities
|
|
|
(3,825
|
)
|
|
|
(1,485
|
)
|
|
|
(4,783
|
)
|
|
|
(5,188
|
)
|
|
Other-than-temporary impairments on fixed maturity securities
transferred to other comprehensive income (loss)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Other net realized capital gains (losses)
|
|
|
58,629
|
|
|
|
43,020
|
|
|
|
50,462
|
|
|
|
124,719
|
|
|
Total net realized capital gains (losses)
|
|
|
54,804
|
|
|
|
41,535
|
|
|
|
45,679
|
|
|
|
119,531
|
|
|
Net derivative gain (loss)
|
|
|
2,225
|
|
|
|
2,656
|
|
|
|
5,485
|
|
|
|
6,052
|
|
|
Other income (expense)
|
|
|
(5,458
|
)
|
|
|
(54,568
|
)
|
|
|
9,642
|
|
|
|
(59,146
|
)
|
|
Total revenues
|
|
|
1,944,413
|
|
|
|
1,725,471
|
|
|
|
5,582,509
|
|
|
|
4,740,860
|
|
|
|
|
|
|
|
|
|
|
|
|
CLAIMS AND EXPENSES:
|
|
|
|
|
|
|
|
|
|
Incurred losses and loss adjustment expenses
|
|
|
1,251,858
|
|
|
|
2,210,082
|
|
|
|
3,650,349
|
|
|
|
3,842,145
|
|
|
Commission, brokerage, taxes and fees
|
|
|
381,401
|
|
|
|
333,113
|
|
|
|
1,122,442
|
|
|
|
915,338
|
|
|
Other underwriting expenses
|
|
|
97,942
|
|
|
|
73,145
|
|
|
|
287,325
|
|
|
|
227,901
|
|
|
Corporate expenses
|
|
|
7,890
|
|
|
|
5,932
|
|
|
|
23,519
|
|
|
|
21,308
|
|
|
Interest, fees and bond issue cost amortization expense
|
|
|
7,901
|
|
|
|
7,266
|
|
|
|
23,047
|
|
|
|
24,289
|
|
|
Total claims and expenses
|
|
|
1,746,992
|
|
|
|
2,629,538
|
|
|
|
5,106,682
|
|
|
|
5,030,981
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE TAXES
|
|
|
197,421
|
|
|
|
(904,067
|
)
|
|
|
475,827
|
|
|
|
(290,121
|
)
|
|
Income tax expense (benefit)
|
|
|
(8,192
|
)
|
|
|
(264,693
|
)
|
|
|
(9,999
|
)
|
|
|
(188,064
|
)
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
|
|
$
|
205,613
|
|
|
$
|
(639,374
|
)
|
|
$
|
485,826
|
|
|
$
|
(102,057
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
Unrealized appreciation (depreciation) ("URA(D)") on securities
arising during the period
|
|
|
(22,282
|
)
|
|
|
(5,671
|
)
|
|
|
(254,682
|
)
|
|
|
18,745
|
|
|
Reclassification adjustment for realized losses (gains) included in
net income (loss)
|
|
|
1,417
|
|
|
|
(5,537
|
)
|
|
|
(7,106
|
)
|
|
|
(16,729
|
)
|
|
Total URA(D) on securities arising during the period
|
|
|
(20,865
|
)
|
|
|
(11,208
|
)
|
|
|
(261,788
|
)
|
|
|
2,016
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments
|
|
|
(5,930
|
)
|
|
|
77,564
|
|
|
|
(51,883
|
)
|
|
|
125,124
|
|
|
|
|
|
|
|
|
|
|
|
|
Reclassification adjustment for amortization of net (gain) loss
included in net income (loss)
|
|
|
1,816
|
|
|
|
1,369
|
|
|
|
5,446
|
|
|
|
5,377
|
|
|
Total benefit plan net gain (loss) for the period
|
|
|
1,816
|
|
|
|
1,369
|
|
|
|
5,446
|
|
|
|
5,377
|
|
|
Total other comprehensive income (loss), net of tax
|
|
|
(24,979
|
)
|
|
|
67,725
|
|
|
|
(308,225
|
)
|
|
|
132,517
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE INCOME (LOSS)
|
|
$
|
180,634
|
|
|
$
|
(571,649
|
)
|
|
$
|
177,601
|
|
|
$
|
30,460
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON SHARE:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
5.04
|
|
|
$
|
(15.73
|
)
|
|
$
|
11.89
|
|
|
$
|
(2.51
|
)
|
|
Diluted
|
|
|
5.02
|
|
|
|
(15.73
|
)
|
|
|
11.83
|
|
|
|
(2.51
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EVEREST RE GROUP, LTD.
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
(Dollars and share amounts in thousands, except par value per share)
|
|
2018
|
|
2017
|
|
|
|
(unaudited)
|
|
|
|
ASSETS:
|
|
|
|
|
|
Fixed maturities - available for sale, at market value
|
|
$
|
14,655,484
|
|
|
$
|
14,756,834
|
|
|
(amortized cost: 2018, $14,870,380; 2017, $14,689,598)
|
|
|
|
|
|
Fixed maturities - available for sale, at fair value
|
|
|
2,373
|
|
|
|
-
|
|
|
Equity securities, at market value (cost: 2018, $0; 2017, $130,287)
|
|
|
-
|
|
|
|
129,530
|
|
|
Equity securities, at fair value
|
|
|
1,166,540
|
|
|
|
963,572
|
|
|
Short-term investments (cost: 2018, $693,117; 2017, $509,682)
|
|
|
693,111
|
|
|
|
509,682
|
|
|
Other invested assets (cost: 2018, $1,508,629; 2017, $1,628,753)
|
|
|
1,508,629
|
|
|
|
1,631,850
|
|
|
Cash
|
|
|
639,761
|
|
|
|
635,067
|
|
|
Total investments and cash
|
|
|
18,665,898
|
|
|
|
18,626,535
|
|
|
Accrued investment income
|
|
|
102,778
|
|
|
|
97,704
|
|
|
Premiums receivable
|
|
|
2,097,259
|
|
|
|
1,844,881
|
|
|
Reinsurance receivables
|
|
|
1,738,706
|
|
|
|
1,348,226
|
|
|
Funds held by reinsureds
|
|
|
369,503
|
|
|
|
292,927
|
|
|
Deferred acquisition costs
|
|
|
460,216
|
|
|
|
411,587
|
|
|
Prepaid reinsurance premiums
|
|
|
374,102
|
|
|
|
288,211
|
|
|
Income taxes
|
|
|
266,464
|
|
|
|
299,438
|
|
|
Other assets
|
|
|
335,931
|
|
|
|
382,283
|
|
|
TOTAL ASSETS
|
|
$
|
24,410,857
|
|
|
$
|
23,591,792
|
|
|
|
|
|
|
|
|
LIABILITIES:
|
|
|
|
|
|
Reserve for losses and loss adjustment expenses
|
|
$
|
12,390,153
|
|
|
$
|
11,884,321
|
|
|
Future policy benefit reserve
|
|
|
47,871
|
|
|
|
51,014
|
|
|
Unearned premium reserve
|
|
|
2,351,312
|
|
|
|
2,000,556
|
|
|
Funds held under reinsurance treaties
|
|
|
17,563
|
|
|
|
18,030
|
|
|
Other net payable to reinsurers
|
|
|
289,961
|
|
|
|
218,017
|
|
|
4.868% Senior notes due 6/1/2044
|
|
|
396,924
|
|
|
|
396,834
|
|
|
6.6% Long term notes due 5/1/2067
|
|
|
236,634
|
|
|
|
236,561
|
|
|
Accrued interest on debt and borrowings
|
|
|
7,869
|
|
|
|
2,727
|
|
|
Equity index put option liability
|
|
|
6,993
|
|
|
|
12,477
|
|
|
Unsettled securities payable
|
|
|
103,682
|
|
|
|
38,743
|
|
|
Other liabilities
|
|
|
232,882
|
|
|
|
363,280
|
|
|
Total liabilities
|
|
|
16,081,844
|
|
|
|
15,222,560
|
|
|
|
|
|
|
|
|
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; (2018)
69,198 and (2017) 69,044 outstanding before treasury shares
|
|
|
692
|
|
|
|
691
|
|
|
Additional paid-in capital
|
|
|
2,182,594
|
|
|
|
2,165,768
|
|
|
Accumulated other comprehensive income (loss), net of deferred
income tax expense (benefit) of ($17,384) at 2018 and $9,356 at
2017
|
|
|
(470,317
|
)
|
|
|
(160,891
|
)
|
|
Treasury shares, at cost; 28,551 shares (2018) and 28,208 shares
(2017)
|
|
|
(3,397,548
|
)
|
|
|
(3,322,244
|
)
|
|
Retained earnings
|
|
|
10,013,592
|
|
|
|
9,685,908
|
|
|
Total shareholders' equity
|
|
|
8,329,013
|
|
|
|
8,369,232
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
$
|
24,410,857
|
|
|
$
|
23,591,792
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EVEREST RE GROUP, LTD.
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
(Dollars in thousands)
|
|
2018
|
|
2017
|
|
|
|
(unaudited)
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
Net income (loss)
|
|
$
|
485,826
|
|
|
$
|
(102,057
|
)
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Decrease (increase) in premiums receivable
|
|
|
(264,556
|
)
|
|
|
(564,080
|
)
|
|
Decrease (increase) in funds held by reinsureds, net
|
|
|
(78,514
|
)
|
|
|
(4,742
|
)
|
|
Decrease (increase) in reinsurance receivables
|
|
|
(430,839
|
)
|
|
|
(245,275
|
)
|
|
Decrease (increase) in income taxes
|
|
|
59,034
|
|
|
|
(247,571
|
)
|
|
Decrease (increase) in prepaid reinsurance premiums
|
|
|
(92,174
|
)
|
|
|
(109,913
|
)
|
|
Increase (decrease) in reserve for losses and loss adjustment
expenses
|
|
|
591,385
|
|
|
|
1,927,538
|
|
|
Increase (decrease) in future policy benefit reserve
|
|
|
(3,143
|
)
|
|
|
(795
|
)
|
|
Increase (decrease) in unearned premiums
|
|
|
364,299
|
|
|
|
389,731
|
|
|
Increase (decrease) in other net payable to reinsurers
|
|
|
79,219
|
|
|
|
59,356
|
|
|
Increase (decrease) in losses in course of payment
|
|
|
98,947
|
|
|
|
137,805
|
|
|
Change in equity adjustments in limited partnerships
|
|
|
(88,377
|
)
|
|
|
(54,155
|
)
|
|
Distribution of limited partnership income
|
|
|
69,078
|
|
|
|
36,859
|
|
|
Change in other assets and liabilities, net
|
|
|
(251,472
|
)
|
|
|
(116,620
|
)
|
|
Non-cash compensation expense
|
|
|
25,791
|
|
|
|
23,011
|
|
|
Amortization of bond premium (accrual of bond discount)
|
|
|
24,804
|
|
|
|
34,657
|
|
|
Net realized capital (gains) losses
|
|
|
(45,679
|
)
|
|
|
(119,531
|
)
|
|
Net cash provided by (used in) operating activities
|
|
|
543,629
|
|
|
|
1,044,218
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
Proceeds from fixed maturities matured/called - available for sale,
at market value
|
|
|
1,444,452
|
|
|
|
1,619,552
|
|
|
Proceeds from fixed maturities sold - available for sale, at market
value
|
|
|
1,756,139
|
|
|
|
1,691,937
|
|
|
Proceeds from fixed maturities sold - available for sale, at fair
value
|
|
|
1,751
|
|
|
|
-
|
|
|
Proceeds from equity securities sold, at market value
|
|
|
-
|
|
|
|
18,802
|
|
|
Proceeds from equity securities sold, at fair value
|
|
|
785,819
|
|
|
|
316,087
|
|
|
Distributions from other invested assets
|
|
|
3,061,938
|
|
|
|
3,555,941
|
|
|
Cost of fixed maturities acquired - available for sale, at market
value
|
|
|
(3,358,333
|
)
|
|
|
(3,774,584
|
)
|
|
Cost of fixed maturities acquired - available for sale, at fair value
|
|
|
(4,381
|
)
|
|
|
-
|
|
|
Cost of equity securities acquired, at market value
|
|
|
-
|
|
|
|
(19,196
|
)
|
|
Cost of equity securities acquired, at fair value
|
|
|
(820,924
|
)
|
|
|
(351,220
|
)
|
|
Cost of other invested assets acquired
|
|
|
(3,244,817
|
)
|
|
|
(3,676,606
|
)
|
|
Net change in short-term investments
|
|
|
535
|
|
|
|
74,000
|
|
|
Net change in unsettled securities transactions
|
|
|
100,647
|
|
|
|
(219,208
|
)
|
|
Net cash provided by (used in) investing activities
|
|
|
(277,174
|
)
|
|
|
(764,495
|
)
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
Common shares issued during the period for share-based compensation,
net of expense
|
|
|
(7,763
|
)
|
|
|
(5,650
|
)
|
|
Purchase of treasury shares
|
|
|
(75,304
|
)
|
|
|
-
|
|
|
Dividends paid to shareholders
|
|
|
(159,343
|
)
|
|
|
(153,887
|
)
|
|
Cost of shares withheld for taxes on settlements of share-based
compensation awards
|
|
|
(15,259
|
)
|
|
|
(12,707
|
)
|
|
Net cash provided by (used in) financing activities
|
|
|
(257,669
|
)
|
|
|
(172,244
|
)
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
|
|
(4,092
|
)
|
|
|
(4,006
|
)
|
|
|
|
|
|
|
|
Net increase (decrease) in cash
|
|
|
4,694
|
|
|
|
103,473
|
|
|
Cash, beginning of period
|
|
|
635,067
|
|
|
|
481,922
|
|
|
Cash, end of period
|
|
$
|
639,761
|
|
|
$
|
585,395
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH FLOW INFORMATION:
|
|
|
|
|
|
Income taxes paid (recovered)
|
|
$
|
(67,941
|
)
|
|
$
|
58,701
|
|
|
Interest paid
|
|
|
17,741
|
|
|
|
20,098
|
|
|
|
|
|
|
|
|
NON-CASH TRANSACTIONS:
|
|
|
|
|
|
Reclassification of investment balances due to prospective
consolidation of private placement liquidity sweep facility
effective July 1, 2018
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturities - available for sale, at market value
|
|
$
|
143,656
|
|
|
$
|
-
|
|
|
Short-term investments
|
|
|
243,864
|
|
|
|
-
|
|
|
Other invested assets
|
|
|
(387,520
|
)
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20181029005752/en/
Source: Everest Re Group, Ltd.
Everest Global Services, Inc.
Craig Howie, 908-604-3169
Executive
Vice President and Chief Financial Officer