EX-99.1 6 ex991.htm EXHIBIT 99.1 ex991
ex991p1i0
 
 
 
1
NEWS RELEASE
 
EVEREST RE GROUP, LTD.
 
Seon place, 141 Front Street, 4
th
 
Floor, Hamilton HM 19, Bermuda
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
 
Fourth Quarter 2022 Results
Fourth Quarter ROE of 20.1%, Operating ROE of 19.4%
Underwriting Discipline Drove Strong Combined Ratio of 87.8%
with Margin Improvement in both Segments
Significant Momentum Following Outstanding 1/1 Renewals
HAMILTON,
 
Bermuda – (BUSINESS WIRE) - February 8, 2023 –
 
Everest Re Group, Ltd. (“Everest” or the
“Group”) today reported its fourth quarter 2022 results.
Fourth Quarter 2022 Highlights
•
Net Operating Income of $478 million, and Net Income of $496 million driven by continued underwriting
margin improvement.
 
YTD 2022 Net Operating Income of $1.1 billion, Net Income of
 
$597 million
 
•
$3.6 billion in
 
gross written premium
 
(“GWP”) with year
 
over year growth
 
of 9% in
 
constant dollars for
the
 
Group,
 
21%
 
in
 
constant
 
dollars
 
for
 
Insurance,
 
and
 
3.7%
 
in
 
constant
 
dollars
 
and
 
excluding
reinstatements for Reinsurance
 
•
Combined ratios of 87.8% for the Group, 86.4% for Reinsurance and 91.4%
 
for Insurance
 
•
Strong
 
attritional
 
combined
 
ratios
 
of
 
87.3%
 
for
 
the
 
Group,
 
86.0%
 
for
 
Reinsurance
 
and
 
90.8%
 
for
Insurance
•
Pre-tax
 
underwriting income
 
of
 
$368 million
 
including
 
$15
 
million
 
of
 
pre-tax
 
catastrophe
 
losses
 
net
 
of
estimated recoveries and reinstatement premiums. The catastrophe
 
losses were from Winter Storm Elliott
•
Net
 
investment
 
income
 
of
 
$210
 
million,
 
driven
 
by
 
stronger
 
fixed
 
income
 
returns
 
as
 
new
 
money
 
yields
continue to improve
 
 
 
 
2
“Everest’s fourth quarter results capped a strong year of consistent execution and positive momentum
 
for the
company,” said Juan C. Andrade, Everest President and CEO.
 
“We grew both underwriting franchises with improved margins, significantly reduced volatility and generated
solid returns despite ongoing market uncertainty and another elevated
 
catastrophe year.
 
This led to over $1
billion in operating income, and a double-digit operating return
 
on equity for both the quarter and the full year.
We had a successful January 1 reinsurance renewal executing a precise and well-orchestrated strategy. We
leveraged Everest’s global leadership position to capitalize on the robust property market and the flight to quality
was evident across virtually all lines and geographies. We drove improved pricing, terms and conditions and
deepened relationships with new and existing core clients throughout
 
the world, which significantly improved risk
adjusted returns across the entire portfolio. We are well positioned with the talent and the platform to continue
this momentum in 2023.”
Summary of Fourth Quarter 2022 Net Income and Other Items
 
•
Net Income of $496 million, equal to $12.66 per diluted share versus
 
fourth quarter 2021 net income of
$431 million, equal to $10.94 per diluted share
 
•
Net operating income of $478 million, equal to $12.21 per diluted share
 
versus fourth quarter 2021 net
operating income of $359 million, equal to $9.12 per diluted share
 
•
GAAP combined ratio of 87.8% including 0.5 points of catastrophe
 
losses versus the fourth quarter 2021
figures of 91.9% including 4.5 points of catastrophe losses
 
•
Strong operating cashflow for the quarter of $1.0 billion which is flat versus
 
the fourth quarter 2021
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
 
amounts and percentages
2022
2022
2021
2021
Everest Re Group
Net income (loss)
496
597
431
1,379
Net operating income (loss)
(1)
478
1,065
359
1,153
Net income (loss) per diluted common share
12.66
15.19
10.94
34.62
Net operating income (loss) per diluted common share
12.21
27.08
9.12
28.97
Net income (loss) return on average equity (annualized)
20.1%
6.0%
17.7%
14.6%
After-tax operating income (loss) return on average
 
equity (annualized)
19.4%
10.6%
14.8%
12.2%
Notes
(1) Refer to the reconciliation of net income to net operating
 
income found on page 6 of this press release
 
 
 
 
 
 
 
 
3
Shareholders' Equity and Book Value
 
per Share
Q4
Year to Date
Q4
Year to Date
All values in USD millions except for per share
 
amounts and percentages
2022
2022
2021
2021
Beginning shareholders' equity
7,649
10,139
9,979
9,726
Net income (loss)
496
597
431
1,379
Change - unrealized gains (losses) - Fixed inc. investments
250
(1,948)
(177)
(485)
Dividends to shareholders
(65)
(255)
(61)
(247)
Purchase of treasury shares
-
(61)
(25)
(225)
Other
110
(31)
(7)
(10)
Ending shareholders' equity
8,441
8,441
10,139
10,139
Common shares outstanding
39.2
39.3
Book value per common share outstanding
215.54
258.21
Less: Unrealized appreciation/depreciation of fixed maturity investments
 
("URAD")
(43.64)
6.09
Adjusted book value per common share outstanding excluding URAD
259.18
252.12
Total Shareholder Return ("TSR")
 
- Annualized
5.4%
14.7%
Common share dividends paid - last 12 months
6.50
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
Q4
Year to Date
Q4
Year to Date
Year on Year
 
Change
All values in USD millions except for percentages
2022
2022
2021
2021
Q4
Year to Date
Gross written premium
3,639
13,952
3,431
13,050
6.1%
6.9%
Net written premium
3,188
12,344
3,056
11,446
4.3%
7.9%
Loss ratio
60.1%
68.7%
64.9%
71.0%
 
(4.8) pts
 
 
(2.3) pts
 
Commission and brokerage ratio
21.6%
21.4%
21.3%
21.2%
 
0.3 pts
 
 
0.2 pts
 
Other underwriting expenses
6.0%
5.8%
5.7%
5.6%
 
0.3 pts
 
 
0.2 pts
 
Combined ratio
87.8%
96.0%
91.9%
97.8%
 
(4.1) pts
 
 
(1.8) pts
 
Attritional combined ratio
(1)
87.3%
87.4%
87.4%
87.6%
 
(0.1) pts
 
 
(0.2) pts
 
Pre-tax net catastrophe losses
(2)
15
945
125
1,065
Pre-tax net Russia/Ukraine losses
 
-
 
45
 
-
 
 
-
 
Pre-tax net prior year reserve development
 
-
 
(1)
(3)
(9)
Notes
(1) Attritional ratios exclude catastrophe losses, net CAT
 
reinstatement premiums earned, prior year development, COVID-19 losses,
 
CECL and losses from the
Russia/Ukraine war
(2) Pre-tax net catastrophe losses are net of reinsurance and
 
reinstatement premiums
Reinsurance Segment – Quarterly Highlights
•
Gross written premiums of $2.38 billion for the quarter versus $2.37
 
billion a year ago. On a constant
dollar basis, growth was 3.7% in the quarter.
 
Casualty and Financial Lines grew by 3.9%, driven by
growth with our core casualty clients and taking advantage of increased
 
mortgage opportunities.
 
This
growth was largely offset by a combination of targeted reductions in our property portfolio and foreign
exchange movements
•
Pre-tax catastrophe losses of $10 million net of estimated recoveries and reinstatement
 
premiums,
compared with $110 million a year ago
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4
•
Improved profitability of the portfolio driven by targeted underwriting actions, resulting
 
in a 150-basis
point improvement in the attritional loss ratio for the quarter vs.
 
the prior year (58.2% vs. 59.7%) and an
attritional combined ratio of 86.0% vs 86.4% a year ago
 
•
Continued expense discipline with a 2.8% expense ratio
•
Execution for the January 1 renewals was precise and well-orchestrated achieving
 
an excellent outcome
Underwriting information - Reinsurance segment
Q4
Year to Date
Q4
Year to Date
Year on Year
 
Change
All values in USD millions except for percentages
2022
2022
2021
2021
Q4
Year to Date
Gross written premium
2,378
9,316
2,372
9,067
0.3%
2.7%
Net written premium
2,320
8,983
2,270
8,536
2.2%
5.2%
Loss ratio
58.7%
69.2%
64.8%
71.6%
 
(6.1) pts
 
 
(2.4) pts
 
Commission and brokerage ratio
25.0%
24.6%
24.1%
23.9%
 
0.9 pts
 
 
0.7 pts
 
Other underwriting expenses
2.8%
2.5%
2.6%
2.6%
 
0.2 pts
 
 
(0.1) pts
 
Combined ratio
86.4%
96.4%
91.5%
98.1%
 
(5.1) pts
 
 
(1.7) pts
 
Attritional combined ratio
(1)
86.0%
86.2%
86.4%
86.3%
 
(0.4) pts
 
 
(0.1) pts
 
Pre-tax net catastrophe losses
(2)
10
820
110
913
Pre-tax net Russia/Ukraine losses
 
-
 
45
 
-
 
 
-
 
Pre-tax net prior year reserve development
 
-
 
(2)
(3)
(8)
Notes
(1) Attritional ratios exclude catastrophe losses, net CAT
 
reinstatement premiums earned, prior year development, COVID-19 losses,
 
CECL and losses from the
Russia/Ukraine war
(2) Pre-tax net catastrophe losses are net of reinsurance and
 
reinstatement premiums
Insurance Segment – Quarterly Highlights
•
Gross written premiums of $1.3 billion, a 21% increase year over
 
year in constant dollars (19% increase
as reported), driven by balanced and diversified growth across
 
most lines of business and geographies
•
Strong profitability with combined ratio of 91.4% and an attritional
 
combined ratio of 90.8%
•
Continued robust expense management with a total expense ratio
 
of 27.4% versus 27.8% a year ago
•
Rate and exposure trends remain favorable
 
Underwriting information - Insurance segment
Q4
Year to Date
Q4
Year to Date
Year on Year
 
Change
All values in USD millions except for percentages
2022
2022
2021
2021
Q4
Year to Date
Gross written premium
1,260
4,636
1,059
3,982
19.0%
16.4%
Net written premium
869
3,361
787
2,910
10.5%
15.5%
Loss ratio
64.0%
67.3%
65.1%
69.3%
 
(1.1) pts
 
 
(2.0) pts
 
Commission and brokerage ratio
12.4%
12.6%
13.4%
13.4%
 
(1.0) pts
 
 
(0.8) pts
 
Other underwriting expenses
15.0%
14.8%
14.4%
14.5%
 
0.6 pts
 
 
0.3 pts
 
Combined ratio
91.4%
94.8%
92.8%
97.1%
 
(1.4) pts
 
 
(2.3) pts
 
Attritional combined ratio
(1)
90.8%
90.4%
90.4%
91.2%
 
0.4 pts
 
 
(0.8) pts
 
Pre-tax net catastrophe losses
(2)
5
125
15
153
Pre-tax net Russia/Ukraine losses
 
-
 
 
-
 
 
-
 
 
-
 
Pre-tax net prior year reserve development
 
-
 
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
 
5
Investments and Shareholders’ Equity as of December 31, 2022
 
•
Total invested assets and cash of $29.9 billion versus the year end 2021 value of $29.7 billion
 
•
Shareholders’ equity
 
of $8.4
 
billion vs.
 
$10.1 billion
 
at year
 
end 2021,
 
largely driven
 
by $1.7
 
billion of
unrealized net losses on fixed maturity investments
 
•
Shareholders’
 
equity
 
excluding
 
unrealized gains
 
(losses)
 
on
 
fixed
 
maturity
 
investments
 
of
 
$10.1
 
billion
vs. $9.9 billion at year end 2021
•
Book value per diluted share of $215.54 vs. $258.21 at year end 2021
 
•
Book
 
value
 
per
 
diluted
 
share
 
excluding
 
unrealized
 
gains
 
(losses)
 
on
 
fixed
 
maturity
 
investments
 
of
$259.18 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.
About Everest
 
Everest is
 
a
 
global underwriting
 
leader providing
 
best-in-class property,
 
casualty,
 
and specialty
 
reinsurance and
insurance
 
solutions
 
that
 
address
 
customers’
 
most
 
pressing
 
challenges.
 
Known
 
for
 
a
 
50-year
 
track
 
record
 
of
disciplined
 
underwriting,
 
capital
 
and
 
risk
 
management,
 
Everest,
 
through
 
its
 
global
 
operating
 
affiliates,
 
is
committed to underwriting opportunity for colleagues, customers, shareholders,
 
and communities worldwide.
 
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.
 
A conference call discussing the results will be held at 8:00 a.m. Eastern Time
 
on February 9, 2023.
 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6
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 December 31,
Twelve Months Ended December
 
31,
(Dollars in millions, 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
After-tax operating income (loss)
$478
$12.21
$359
$9.12
$1,065
$27.08
$1,153
$28.97
After-tax net gains (losses) on investments
$49
$1.25
$90
$2.29
$(366)
$(9.30)
$202
$5.06
After-tax net foreign exchange income (expense)
$(31)
$(0.80)
$(19)
$(0.48)
$(102)
$(2.60)
$24
$0.60
Net income (loss)
$496
$12.66
$431
$10.94
$597
$15.19
$1,379
$34.62
(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
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--
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7
EVEREST RE GROUP, LTD.
CONSOLIDATED STATEMENTS
 
OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
Three Months Ended
 
Twelve Months Ended
 
December 31,
December 31,
(Dollars in millions, except per share amounts)
2022
2021
2022
2021
(unaudited)
(unaudited)
REVENUES:
Premiums earned
 
$3,012
$2,804
$11,787
$10,406
Net investment income
210
205
830
1,165
Net gains (losses) on investments:
Credit allowances on fixed maturity securities
(15)
2
(33)
(28)
Gains (losses) from fair value adjustments
2
108
(460)
236
Net realized gains (losses) from dispositions
77
9
38
50
Total net gains (losses) on investments
64
119
(455)
258
Other income (expense)
(30)
(7)
(102)
37
Total revenues
3,256
3,121
12,060
11,866
CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses
 
1,811
1,819
8,100
7,391
Commission, brokerage, taxes and fees
651
598
2,528
2,209
Other underwriting expenses
 
182
158
682
583
Corporate expenses
16
21
61
68
Interest, fees and bond issue cost amortization expense
27
23
101
70
Total claims and expenses
2,687
2,620
11,472
10,321
INCOME (LOSS) BEFORE TAXES
568
500
588
1,546
Income tax expense (benefit)
72
69
(9)
167
NET INCOME (LOSS)
$496
$431
$597
$1,379
Other comprehensive income (loss), net of tax:
Unrealized appreciation (depreciation) ("URA(D)")
 
on securities arising
during the period
223
(184)
(2,037)
(488)
Reclassification adjustment for realized losses (gains) included
 
in net income
(loss)
28
7
89
4
Total URA(D) on securities arising during the period
251
(177)
(1,948)
(485)
Foreign currency translation adjustments
86
(33)
(77)
(62)
Benefit plan actuarial net gain (loss) for the period
15
17
15
17
Reclassification adjustment for amortization of net (gain)
 
loss included in net
income (loss)
-
1
2
6
Total benefit plan net gain (loss) for the period
15
18
17
23
Total other comprehensive income (loss), net of tax
352
(192)
(2,008)
(523)
COMPREHENSIVE INCOME (LOSS)
$848
$238
$(1,411)
$856
EARNINGS PER COMMON SHARE:
Basic
$12.66
$10.95
$15.19
$34.66
Diluted
12.66
10.94
15.19
34.62
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8
EVEREST RE GROUP, LTD.
CONSOLIDATED BALANCE SHEETS
December 31,
(Dollars and share amounts in millions, except par value per share)
2022
 
2021
 
(unaudited)
ASSETS:
Fixed maturities - available for sale, at fair value
$22,236
$22,308
(amortized cost: 2022, $24,191; 2021, $22,064, credit allowances:
 
2022, ($54); 2021, ($30))
Fixed maturities - held to maturity,
 
at amortized cost
(fair value: 2022, $821, credit allowances: 2022, ($9))
839
-
Equity securities, at fair value
281
1,826
Other invested assets
4,085
2,920
Short-term investments (cost: 2022, $1,032; 2021, $1,178)
1,032
1,178
Cash
1,398
1,441
Total investments and cash
29,872
29,673
Accrued investment income
217
149
Premiums receivable (credit allowances: 2022, ($29); 2021, ($26))
3,619
3,294
Reinsurance paid loss recoverables (credit allowances: 2022, ($23); 2021,
 
($17))
136
107
Reinsurance unpaid loss recoverables
 
2,105
1,946
Funds held by reinsureds
1,056
869
Deferred acquisition costs
962
872
Prepaid reinsurance premiums
610
515
Income tax asset, net
459
2
Other assets (credit allowances: 2022, ($5); 2021, ($4))
930
757
TOTAL ASSETS
$39,966
$38,185
LIABILITIES:
Reserve for losses and loss adjustment expenses
22,065
19,009
Future policy benefit reserve
29
36
Unearned premium reserve
5,147
4,610
Funds held under reinsurance treaties
13
18
Other net payable to reinsurers
567
450
Losses in course of payment
74
261
Senior notes
2,347
2,346
Long term notes
218
224
Borrowings from FHLB
519
519
Accrued interest on debt and borrowings
19
17
Unsettled securities payable
1
17
Other liabilities
526
540
Total liabilities
31,525
28,046
SHAREHOLDERS' EQUITY:
Preferred shares, par value: $0.01; 50.0 shares authorized;
no shares issued and outstanding
 
-
 
-
Common shares, par value: $0.01; 200.0 shares authorized; (2022)
 
69.9
and (2021) 69.8 outstanding before treasury shares
1
1
Additional paid-in capital
2,302
2,274
Accumulated other comprehensive income (loss), net of deferred income
 
tax expense
(benefit) of ($250) at 2022 and $27 at 2021
(1,996)
12
Treasury shares, at cost; 30.8 (2022) and 30.5
 
shares (2021)
(3,908)
(3,847)
Retained earnings
12,042
11,700
Total shareholders' equity
 
8,441
10,139
TOTAL LIABILITIES AND
 
SHAREHOLDERS' EQUITY
$39,966
$38,185
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9
EVEREST RE GROUP,
 
LTD.
CONSOLIDATED STATEMENTS
 
OF CASH FLOWS
 
Twelve Months Ended
 
December 31,
(Dollars in millions)
2022
2021
(unaudited)
CASH FLOWS FROM OPERATING
 
ACTIVITIES:
Net income (loss)
$597
$1,379
Adjustments to reconcile net income to net cash provided by
 
operating activities:
Decrease (increase) in premiums receivable
(435)
(649)
Decrease (increase) in funds held by reinsureds, net
(197)
(151)
Decrease (increase) in reinsurance recoverables
(413)
(125)
Decrease (increase) in income taxes
(181)
68
Decrease (increase) in prepaid reinsurance premiums
(166)
(128)
Increase (decrease) in reserve for losses and loss adjustment
 
expenses
3,477
2,805
Increase (decrease) in future policy benefit reserve
(7)
(2)
Increase (decrease) in unearned premiums
655
1,146
Increase (decrease) in other net payable to reinsurers
201
186
Increase (decrease) in losses in course of payment
(186)
134
Change in equity adjustments in limited partnerships
(94)
(613)
Distribution of limited partnership income
180
211
Change in other assets and liabilities, net
(291)
(290)
Non-cash compensation expense
 
45
43
Amortization of bond premium (accrual of bond discount)
55
76
Net (gains) losses on investments
455
(258)
Net cash provided by (used in) operating activities
3,695
3,833
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from fixed maturities matured/called/repaid - available
 
for sale
2,626
3,893
Proceeds from fixed maturities sold - available for sale
1,403
1,916
Proceeds from fixed maturities matured/called/repaid - held to maturity
39
-
Proceeds from equity securities sold
2,217
990
Distributions from other invested assets
266
257
Cost of fixed maturities acquired - available for sale
(7,344)
(8,825)
Cost of fixed maturities acquired - held to maturity
(153)
-
Cost of equity securities acquired
(1,003)
(1,098)
Cost of other invested assets acquired
(1,547)
(757)
Net change in short-term investments
149
(43)
Net change in unsettled securities transactions
(71)
(203)
Net cash provided by (used in) investing activities
(3,418)
(3,869)
CASH FLOWS FROM FINANCING ACTIVITIES:
Common shares issued (redeemed) during the period for share-based
 
compensation, net of expense
(17)
(14)
Purchase of treasury shares
(61)
(225)
Dividends paid to shareholders
(255)
(247)
Proceeds from issuance of senior notes
-
968
Cost of debt repurchase
(6)
-
Net FHLB borrowings (repayments)
-
209
Cost of shares withheld on settlements of share-based compensation
 
awards
(20)
(17)
Net cash provided by (used in) financing activities
(359)
674
EFFECT OF EXCHANGE RATE
 
CHANGES ON CASH
39
1
Net increase (decrease) in cash
(42)
639
Cash, beginning of period
1,441
802
Cash, end of period
$1,398
$1,441
SUPPLEMENTAL CASH FLOW
 
INFORMATION:
Income taxes paid (recovered)
$171
$98
Interest paid
 
98
62
NON-CASH TRANSACTIONS:
Reclassification of specific investments from fixed maturity securities,
 
available for sale
 
at fair value to fixed maturity securities, held to maturity at amortized
 
cost net of credit allowances
$722
$-