Schedule II - Condensed Financial Information Of The Registrant

12 Months Ended

Dec. 31, 2019

Schedule II - Condensed Financial Information Of The Registrant [Abstract]

Schedule II - Condensed Financial Information Of The Registrant

SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

CONDENSED BALANCE SHEETS

	December 31,
(Dollars and share amounts in thousands, except par value per share)	2019		2018
ASSETS:
Fixed maturities - available for sale, at market value	$	201,666	$	76,170
(amortized cost: 2019, $201,581; 2018, $76,274)
Other invested assets (cost: 2019, $41,700; 2018, $91)		41,700		91
Cash		3,471		198
Investment in subsidiaries, at equity in the underlying net assets		9,134,038		7,733,933
Accrued investment income		652		277
Receivable from subsidiaries		9,361		6,726
Other assets		44,646		44,737
TOTAL ASSETS	$	9,435,534	$	7,862,132
LIABILITIES:
Long term note payable, affiliated due 12/1/2028	$	300,000	$	-
Due to subsidiaries		1,491		1,065
Other liabilities		1,118		270
Total liabilities		302,609		1,335
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
(2019) 69,464and (2018) 69,202 issued outstanding before treasury shares		694		692
Additional paid-in capital		2,219,660		2,188,777
Accumulated other comprehensive income (loss), net of deferred income
tax expense (benefit) of $30,996 at 2019 and $(20,697) at 2018		28,152		(462,557)
Treasury shares, at cost; 28,665 shares (2019) and 28,551 shares (2018)		(3,422,152)		(3,397,548)
Retained earnings		10,306,571		9,531,433
Total shareholders' equity		9,132,925		7,860,797
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	9,435,534	$	7,862,132
See notes to consolidated financial statements.

SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

CONDENSED STATEMENTS OF OPERATIONS

	Years Ended December 31,
		2019		2018		2017
(Dollars in thousands)
REVENUES:
Net investment income	$	3,484	$	3,790	$	1,344
Net realized capital gains (losses)		(66)		(57)		80
Other income (expense)		458		(5,299)		(6,872)
Net income (loss) of subsidiaries		1,026,233		112,859		509,279
Total revenues		1,030,109		111,293		503,831
EXPENSES:
Interest expense - affiliated		2,087		4,085		4,300
Other expenses		18,561		18,167		16,780
Total expenses		20,648		22,252		21,080
INCOME (LOSS) BEFORE TAXES		1,009,461		89,041		482,751
NET INCOME (LOSS)	$	1,009,461	$	89,041	$	482,751
Other comprehensive income (loss), net of tax:
Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period		496,430		(255,656)		(64,348)
Reclassification adjustment for realized losses (gains) included in net income (loss)		(12,613)		27,496		(6,950)
Total URA(D) on securities arising during the period		483,817		(228,160)		(71,298)
Foreign currency translation adjustments		14,030		(76,816)		121,917
Benefit plan actuarial net gain (loss) for the period		(12,591)		(510)		1,027
Reclassification adjustment for amortization of net (gain) loss included in net income (loss)		5,453		5,021		5,477
Total benefit plan net gain (loss) for the period		(7,138)		4,511		6,504
Total other comprehensive income (loss), net of tax		490,709		(300,465)		57,123
COMPREHENSIVE INCOME (LOSS)	$	1,500,170	$	(211,424)	$	539,874
See notes to consolidated financial statements.

SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

CONDENSED STATEMENTS OF CASH FLOWS

	Years Ended December 31,
(Dollars in thousands)		2019		2018		2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	1,009,461	$	89,041	$	482,751
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in retained (earnings) deficit of subsidiaries		(1,026,233)		(112,859)		(509,279)
Dividends received from Bermuda Re		600,000		750,000		400,000
Dividends received from Everest International		-		200,000		-
Dividends received from Mt. Logan Re		-		-		25,000
Change in other assets and liabilities, net		564		4,824		6,107
Increase (decrease) in due to/from affiliates		(2,209)		683		(6,470)
Amortization of bond premium (accrual of bond discount)		(9)		(577)		12
Realized capital losses (gains)		66		57		(80)
Non-cash compensation expense		2,796		2,740		3,448
Net cash provided by (used in) operating activities		584,436		933,909		401,489
CASH FLOWS FROM INVESTING ACTIVITIES:
Additional investment in subsidiaries		(478,125)		(542,965)		(109,815)
Proceeds from fixed maturities matured/called - available for sale, at market value		63		93		696
Proceeds from fixed maturities sold - available for sale, at market value		74,841		24,856		90,154
Distribution from other invested assets		644,918		1,026,297		546,414
Cost of fixed maturities acquired - available for sale, at market value		(200,267)		-		(189,308)
Cost of other invested assets acquired		(686,528)		(923,828)		(503,937)
Net change in short-term investments		-		-		-
Net cash provided by (used in) investing activities		(645,098)		(415,547)		(165,796)
CASH FLOWS FROM FINANCING ACTIVITIES:
Common shares issued during the period, net		22,861		20,086		22,790
Purchase of treasury shares		(24,604)		(75,304)		(50,000)
Dividends paid to shareholders		(234,322)		(216,221)		(207,242)
Proceeds from issuance (cost of repayment) of long term note - affiliated		300,000		(250,000)		-
Net cash provided by (used in) financing activities		63,935		(521,439)		(234,452)
EFFECT OF EXCHANGE RATE CHANGES ON CASH		-		-		-
Net increase (decrease) in cash		3,273		(3,077)		1,241
Cash, beginning of period		198		3,275		2,034
Cash, end of period	$	3,471	$	198	$	3,275
See notes to consolidated financial statements.

SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

NOTES to conDENSED financial information

1.) The accompanying condensed financial information should be read in conjunction with the consolidated financial statements and related Notes of Everest Re Group, Ltd. and its Subsidiaries.

2.) Everest Re Group, Ltd. entered into a $300,000 thousand long term note agreement with Everest Reinsurance Company, an affiliated company, as of December 17, 2019. The note will pay interest annually at a rate of 1.69 % and is scheduled to mature in December, 2028. As of December 31, 2019, this transaction was presented as a Long Term Note Payable – Affiliated in the Consolidated Balance sheets of Everest Re Group, Ltd.

3.) Everest Re Group, Ltd. has invested funds in the segregated accounts of Mt. Logan Re, Ltd. (“Mt. Logan Re”), an affiliated entity. On the Condensed Balance Sheets, investments in Mt. Logan Re valued at $46,390 thousand and $45,625 thousand as of December 31, 2019 and 2018, respectively, have been recorded within Other Assets. On the Condensed Statements of Operations, income of $765 thousand, expense of $,4695 thousand and expense of $6,352 thousand for the years ended December 31, 2019, 2018 and 2017, respectively, have been recorded in other income (expense).