FOR THE QUARTERLY PERIOD ENDED:
March 31, 2011
|
Commission file number:
1-14527
|
Delaware
|
22-3263609
|
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
YES
|
X
|
NO
|
YES
|
NO
|
Large accelerated filer
|
Accelerated filer
|
|||
Non-accelerated filer
|
X
|
Smaller reporting company
|
||
(Do not check if smaller reporting company)
|
YES
|
NO
|
X
|
Number of Shares Outstanding
|
||
Class
|
At May 1, 2011
|
|
Common Shares, $0.01 par value
|
1,000 |
Page |
Item 1.
|
Financial Statements
|
|||
1
|
||||
2
|
||||
3
|
||||
4
|
||||
5
|
||||
Item 2.
|
||||
27
|
||||
Item 3.
|
41
|
|||
Item 4.
|
41
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|||
Item 1.
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41
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|||
Item 1A.
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41
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|||
Item 2.
|
41
|
|||
Item 3.
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41
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|||
Item 4.
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41
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|||
Item 5.
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42
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|||
Item 6.
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42
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March 31,
|
December 31,
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|||||||
(Dollars in thousands, except par value per share)
|
2011
|
2010
|
||||||
(unaudited)
|
||||||||
ASSETS:
|
||||||||
Fixed maturities - available for sale, at market value
|
$ | 5,433,976 | $ | 5,599,940 | ||||
(amortized cost: 2011, $5,289,312; 2010, $5,438,359)
|
||||||||
Fixed maturities - available for sale, at fair value
|
143,708 | 180,482 | ||||||
Equity securities - available for sale, at market value (cost: 2011, $15 2010, $15)
|
13 | 13 | ||||||
Equity securities - available for sale, at fair value
|
797,424 | 683,454 | ||||||
Short-term investments
|
368,767 | 516,885 | ||||||
Other invested assets (cost: 2011, $385,471; 2010, $405,401)
|
388,421 | 406,916 | ||||||
Other invested assets, at fair value
|
857,107 | 788,142 | ||||||
Cash
|
169,365 | 118,092 | ||||||
Total investments and cash
|
8,158,781 | 8,293,924 | ||||||
Accrued investment income
|
66,269 | 70,874 | ||||||
Premiums receivable
|
756,042 | 643,257 | ||||||
Reinsurance receivables - unaffiliated
|
679,975 | 670,168 | ||||||
Reinsurance receivables - affiliated
|
3,010,140 | 2,708,193 | ||||||
Funds held by reinsureds
|
174,535 | 171,179 | ||||||
Deferred acquisition costs
|
176,395 | 184,247 | ||||||
Prepaid reinsurance premiums
|
605,832 | 629,323 | ||||||
Deferred tax asset
|
149,062 | 183,924 | ||||||
Federal income taxes recoverable
|
198,695 | 142,421 | ||||||
Other assets
|
425,438 | 171,923 | ||||||
TOTAL ASSETS
|
$ | 14,401,164 | $ | 13,869,433 | ||||
LIABILITIES:
|
||||||||
Reserve for losses and loss adjustment expenses
|
$ | 8,143,475 | $ | 7,652,303 | ||||
Unearned premium reserve
|
1,266,955 | 1,287,476 | ||||||
Funds held under reinsurance treaties
|
183,728 | 180,377 | ||||||
Losses in the course of payment
|
62,113 | 13,089 | ||||||
Commission reserves
|
36,202 | 37,796 | ||||||
Other net payable to reinsurers
|
520,510 | 467,486 | ||||||
Revolving credit borrowings
|
40,000 | 50,000 | ||||||
5.4% Senior notes due 10/15/2014
|
249,824 | 249,812 | ||||||
6.6% Long term notes due 05/01/2067
|
238,352 | 238,351 | ||||||
Junior subordinated debt securities payable
|
329,897 | 329,897 | ||||||
Accrued interest on debt and borrowings
|
12,103 | 4,793 | ||||||
Other liabilities
|
285,191 | 230,312 | ||||||
Total liabilities
|
11,368,350 | 10,741,692 | ||||||
Commitments and Contingencies (Note 6)
|
||||||||
STOCKHOLDER'S EQUITY:
|
||||||||
Common stock, par value: $0.01; 3,000 shares authorized;
|
||||||||
1,000 shares issued and outstanding (2011 and 2010)
|
- | - | ||||||
Additional paid-in capital
|
329,356 | 327,767 | ||||||
Accumulated other comprehensive income (loss), net of deferred income tax expense
|
||||||||
(benefit) of $88,837 at 2011 and $88,289 at 2010
|
164,983 | 163,966 | ||||||
Retained earnings
|
2,538,475 | 2,636,008 | ||||||
Total stockholder's equity
|
3,032,814 | 3,127,741 | ||||||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY
|
$ | 14,401,164 | $ | 13,869,433 | ||||
The accompanying notes are an integral part of the consolidated financial statements.
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
(Dollars in thousands)
|
2011
|
2010
|
||||||
(unaudited)
|
||||||||
REVENUES:
|
||||||||
Premiums earned
|
$ | 459,393 | $ | 414,134 | ||||
Net investment income
|
87,132 | 85,107 | ||||||
Net realized capital gains (losses):
|
||||||||
Other-than-temporary impairments on fixed maturity securities
|
(13,611 | ) | - | |||||
Other-than-temporary impairments on fixed maturity securities
|
||||||||
transferred to other comprehensive income (loss)
|
- | - | ||||||
Other net realized capital gains (losses)
|
54,087 | (5,307 | ) | |||||
Total net realized capital gains (losses)
|
40,476 | (5,307 | ) | |||||
Other income (expense)
|
32 | 5,112 | ||||||
Total revenues
|
587,033 | 499,046 | ||||||
CLAIMS AND EXPENSES:
|
||||||||
Incurred losses and loss adjustment expenses
|
553,028 | 427,004 | ||||||
Commission, brokerage, taxes and fees
|
88,512 | 67,841 | ||||||
Other underwriting expenses
|
38,217 | 32,714 | ||||||
Corporate expenses
|
1,190 | 2,226 | ||||||
Interest, fee and bond issue cost amortization expense
|
12,682 | 16,340 | ||||||
Total claims and expenses
|
693,629 | 546,125 | ||||||
INCOME (LOSS) BEFORE TAXES
|
(106,596 | ) | (47,079 | ) | ||||
Income tax expense (benefit)
|
(9,063 | ) | (2,150 | ) | ||||
NET INCOME (LOSS)
|
$ | (97,533 | ) | $ | (44,929 | ) | ||
Other comprehensive income (loss), net of tax
|
1,017 | 11,746 | ||||||
COMPREHENSIVE INCOME (LOSS)
|
$ | (96,516 | ) | $ | (33,183 | ) | ||
The accompanying notes are an integral part of the consolidated financial statements.
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
(Dollars in thousands, except share amounts)
|
2011
|
2010
|
||||||
(unaudited)
|
||||||||
COMMON STOCK (shares outstanding):
|
||||||||
Balance, beginning of period
|
1,000 | 1,000 | ||||||
Balance, end of period
|
1,000 | 1,000 | ||||||
ADDITIONAL PAID-IN CAPITAL:
|
||||||||
Balance, beginning of period
|
$ | 327,767 | $ | 321,185 | ||||
Share-based compensation plans
|
1,589 | 1,274 | ||||||
Balance, end of period
|
329,356 | 322,459 | ||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS),
|
||||||||
NET OF DEFERRED INCOME TAXES:
|
||||||||
Balance, beginning of period
|
163,966 | 166,978 | ||||||
Net increase (decrease) during the period
|
1,017 | 11,746 | ||||||
Balance, end of period
|
164,983 | 178,724 | ||||||
RETAINED EARNINGS:
|
||||||||
Balance, beginning of period
|
2,636,008 | 2,370,611 | ||||||
Net income (loss)
|
(97,533 | ) | (44,929 | ) | ||||
Balance, end of period
|
2,538,475 | 2,325,682 | ||||||
TOTAL STOCKHOLDER'S EQUITY, END OF PERIOD
|
$ | 3,032,814 | $ | 2,826,865 | ||||
The accompanying notes are an integral part of the consolidated financial statements.
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
(Dollars in thousands)
|
2011
|
2010
|
||||||
(unaudited)
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net income (loss)
|
$ | (97,533 | ) | $ | (44,929 | ) | ||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Decrease (increase) in premiums receivable
|
(111,328 | ) | 3,330 | |||||
Decrease (increase) in funds held by reinsureds, net
|
196 | 2,210 | ||||||
Decrease (increase) in reinsurance receivables
|
(306,071 | ) | (209,177 | ) | ||||
Decrease (increase) in deferred tax asset
|
34,314 | (8,294 | ) | |||||
Decrease (increase) in prepaid reinsurance premiums
|
23,936 | (18,251 | ) | |||||
Increase (decrease) in reserve for losses and loss adjustment expenses
|
465,159 | 303,114 | ||||||
Increase (decrease) in unearned premiums
|
(23,149 | ) | 17,379 | |||||
Change in equity adjustments in limited partnerships
|
(18,415 | ) | (9,414 | ) | ||||
Change in other assets and liabilities, net
|
70,747 | 126,226 | ||||||
Non-cash compensation expense
|
1,380 | 1,195 | ||||||
Amortization of bond premium (accrual of bond discount)
|
3,492 | 3,546 | ||||||
Amortization of underwriting discount on senior notes
|
12 | 42 | ||||||
Net realized capital (gains) losses
|
(40,476 | ) | 5,307 | |||||
Net cash provided by (used in) operating activities
|
2,264 | 172,284 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Proceeds from fixed maturities matured/called - available for sale, at market value
|
107,455 | 172,263 | ||||||
Proceeds from fixed maturities matured/called - available for sale, at fair value
|
6,900 | - | ||||||
Proceeds from fixed maturities sold - available for sale, at market value
|
516,721 | 165,485 | ||||||
Proceeds from fixed maturities sold - available for sale, at fair value
|
32,952 | 2,497 | ||||||
Proceeds from equity securities sold - available for sale, at market value
|
27,096 | - | ||||||
Proceeds from equity securities sold - available for sale, at fair value
|
52,696 | 21,342 | ||||||
Distributions from other invested assets
|
61,359 | 8,165 | ||||||
Cost of fixed maturities acquired - available for sale, at market value
|
(472,805 | ) | (275,526 | ) | ||||
Cost of fixed maturities acquired - available for sale, at fair value
|
(8,076 | ) | (14,194 | ) | ||||
Cost of equity securities acquired - available for sale, at market value
|
(27,059 | ) | - | |||||
Cost of equity securities acquired - available for sale, at fair value
|
(126,665 | ) | (20,739 | ) | ||||
Cost of other invested assets acquired
|
(23,014 | ) | (9,740 | ) | ||||
Cost of other invested assets acquired, at fair value
|
(37,611 | ) | (47,032 | ) | ||||
Cost of businesses acquired
|
(63,100 | ) | - | |||||
Net change in short-term investments
|
149,303 | 12,085 | ||||||
Net change in unsettled securities transactions
|
(143,998 | ) | 16,323 | |||||
Net cash provided by (used in) investing activities
|
52,154 | 30,929 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Tax benefit from share-based compensation
|
209 | 79 | ||||||
Net cost of senior notes maturing
|
- | (200,000 | ) | |||||
Revolving credit borrowings
|
(10,000 | ) | - | |||||
Net cash provided by (used in) financing activities
|
(9,791 | ) | (199,921 | ) | ||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
6,646 | (3,035 | ) | |||||
Net increase (decrease) in cash
|
51,273 | 257 | ||||||
Cash, beginning of period
|
118,092 | 107,480 | ||||||
Cash, end of period
|
$ | 169,365 | $ | 107,737 | ||||
SUPPLEMENTAL CASH FLOW INFORMATION:
|
||||||||
Cash transactions:
|
||||||||
Income taxes paid (recovered)
|
$ | 10,792 | $ | 3,766 | ||||
Interest paid
|
5,203 | 13,899 | ||||||
Non-cash transaction:
|
||||||||
Net assets acquired and liabilities assumed from business acquisitions
|
19,130 | - | ||||||
The accompanying notes are an integral part of the consolidated financial statements.
|
(Dollars in thousands)
|
||||
Cumulative-effect adjustment, gross
|
$ | 23,846 | ||
Tax
|
(8,346 | ) | ||
Cumulative-effect adjustment, net
|
$ | 15,500 |
At March 31, 2011
|
||||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Market
|
|||||||||||||
(Dollars in thousands)
|
Cost
|
Appreciation
|
Depreciation
|
Value
|
||||||||||||
Fixed maturity securities
|
||||||||||||||||
U.S. Treasury securities and obligations of
|
||||||||||||||||
U.S. government agencies and corporations
|
$ | 83,844 | $ | 1,981 | $ | (1,680 | ) | $ | 84,145 | |||||||
Obligations of U.S. states and political subdivisions
|
2,402,356 | 94,023 | (16,195 | ) | 2,480,184 | |||||||||||
Corporate securities
|
799,161 | 40,773 | (10,214 | ) | 829,720 | |||||||||||
Asset-backed securities
|
24,453 | 691 | (17 | ) | 25,127 | |||||||||||
Mortgage-backed securities
|
||||||||||||||||
Commercial
|
31,347 | 7,601 | - | 38,948 | ||||||||||||
Agency residential
|
334,751 | 13,084 | (241 | ) | 347,594 | |||||||||||
Non-agency residential
|
28,238 | 655 | (79 | ) | 28,814 | |||||||||||
Foreign government securities
|
886,467 | 30,155 | (15,202 | ) | 901,420 | |||||||||||
Foreign corporate securities
|
698,695 | 19,736 | (20,407 | ) | 698,024 | |||||||||||
Total fixed maturity securities
|
$ | 5,289,312 | $ | 208,699 | $ | (64,035 | ) | $ | 5,433,976 | |||||||
Equity securities
|
$ | 15 | $ | - | $ | (2 | ) | $ | 13 |
At December 31, 2010
|
||||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Market
|
|||||||||||||
(Dollars in thousands)
|
Cost
|
Appreciation
|
Depreciation
|
Value
|
||||||||||||
Fixed maturity securities
|
||||||||||||||||
U.S. Treasury securities and obligations of
|
||||||||||||||||
U.S. government agencies and corporations
|
$ | 153,263 | $ | 2,450 | $ | (5,146 | ) | $ | 150,567 | |||||||
Obligations of U.S. states and political subdivisions
|
2,809,514 | 116,920 | (24,929 | ) | 2,901,505 | |||||||||||
Corporate securities
|
688,938 | 42,522 | (9,775 | ) | 721,685 | |||||||||||
Asset-backed securities
|
19,860 | 705 | (14 | ) | 20,551 | |||||||||||
Mortgage-backed securities
|
||||||||||||||||
Commercial
|
31,887 | 7,618 | - | 39,505 | ||||||||||||
Agency residential
|
355,928 | 13,975 | (212 | ) | 369,691 | |||||||||||
Non-agency residential
|
29,373 | 912 | (317 | ) | 29,968 | |||||||||||
Foreign government securities
|
731,930 | 32,678 | (15,567 | ) | 749,041 | |||||||||||
Foreign corporate securities
|
617,666 | 20,939 | (21,178 | ) | 617,427 | |||||||||||
Total fixed maturity securities
|
$ | 5,438,359 | $ | 238,719 | $ | (77,138 | ) | $ | 5,599,940 | |||||||
Equity securities
|
$ | 15 | $ | - | $ | (2 | ) | $ | 13 |
(Dollars in thousands)
|
At March 31, 2011
|
At December 31, 2010
|
||||
Pre-tax cumulative unrealized appreciation (depreciation)
|
$ | 843 | $ | 823 |
At March 31, 2011
|
At December 31, 2010
|
|||||||||||||||
Amortized
|
Market
|
Amortized
|
Market
|
|||||||||||||
(Dollars in thousands)
|
Cost
|
Value
|
Cost
|
Value
|
||||||||||||
Fixed maturity securities – available for sale
|
||||||||||||||||
Due in one year or less
|
$ | 208,892 | $ | 207,299 | $ | 212,728 | $ | 207,739 | ||||||||
Due after one year through five years
|
1,739,602 | 1,770,747 | 1,642,227 | 1,681,497 | ||||||||||||
Due after five years through ten years
|
1,160,884 | 1,200,473 | 1,203,497 | 1,253,609 | ||||||||||||
Due after ten years
|
1,761,145 | 1,814,974 | 1,942,859 | 1,997,380 | ||||||||||||
Asset-backed securities
|
24,453 | 25,127 | 19,860 | 20,551 | ||||||||||||
Mortgage-backed securities
|
||||||||||||||||
Commercial
|
31,347 | 38,948 | 31,887 | 39,505 | ||||||||||||
Agency residential
|
334,751 | 347,594 | 355,928 | 369,691 | ||||||||||||
Non-agency residential
|
28,238 | 28,814 | 29,373 | 29,968 | ||||||||||||
Total fixed maturity securities
|
$ | 5,289,312 | $ | 5,433,976 | $ | 5,438,359 | $ | 5,599,940 |
Three Months Ended
|
||||||||
March 31,
|
||||||||
(Dollars in thousands)
|
2011
|
2010
|
||||||
Increase (decrease) during the period between the market value and cost
|
||||||||
of investments carried at market value, and deferred taxes thereon:
|
||||||||
Fixed maturity securities
|
$ | (16,918 | ) | $ | 6,205 | |||
Equity securities
|
- | (1 | ) | |||||
Other invested assets
|
1,435 | 513 | ||||||
Change in unrealized appreciation (depreciation), pre-tax
|
(15,483 | ) | 6,717 | |||||
Deferred tax benefit (expense)
|
5,419 | (2,351 | ) | |||||
Change in unrealized appreciation (depreciation),
|
||||||||
net of deferred taxes, included in stockholder's equity
|
$ | (10,064 | ) | $ | 4,366 |
Duration of Unrealized Loss at March 31, 2011 By Security Type
|
||||||||||||||||||||||||
Less than 12 months
|
Greater than 12 months
|
Total
|
||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||
(Dollars in thousands)
|
Market Value
|
Depreciation
|
Market Value
|
Depreciation
|
Market Value
|
Depreciation
|
||||||||||||||||||
Fixed maturity securities - available for sale
|
||||||||||||||||||||||||
U.S. Treasury securities and obligations of
|
||||||||||||||||||||||||
U.S. government agencies and corporations
|
$ | 21,934 | $ | (1,199 | ) | $ | 3,366 | $ | (481 | ) | $ | 25,300 | $ | (1,680 | ) | |||||||||
Obligations of U.S. states and political subdivisions
|
341,191 | (16,181 | ) | 1,110 | (14 | ) | 342,301 | (16,195 | ) | |||||||||||||||
Corporate securities
|
145,869 | (9,193 | ) | 10,667 | (1,021 | ) | 156,536 | (10,214 | ) | |||||||||||||||
Asset-backed securities
|
4,012 | (17 | ) | - | - | 4,012 | (17 | ) | ||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||||||||||
Agency residential
|
21,573 | (241 | ) | - | - | 21,573 | (241 | ) | ||||||||||||||||
Non-agency residential
|
916 | (78 | ) | - | (1 | ) | 916 | (79 | ) | |||||||||||||||
Foreign government securities
|
265,864 | (7,166 | ) | 85,984 | (8,036 | ) | 351,848 | (15,202 | ) | |||||||||||||||
Foreign corporate securities
|
223,740 | (9,654 | ) | 94,780 | (10,753 | ) | 318,520 | (20,407 | ) | |||||||||||||||
Total fixed maturity securities
|
$ | 1,025,099 | $ | (43,729 | ) | $ | 195,907 | $ | (20,306 | ) | $ | 1,221,006 | $ | (64,035 | ) | |||||||||
Equity securities
|
- | - | 13 | (2 | ) | 13 | (2 | ) | ||||||||||||||||
Total
|
$ | 1,025,099 | $ | (43,729 | ) | $ | 195,920 | $ | (20,308 | ) | $ | 1,221,019 | $ | (64,037 | ) |
Duration of Unrealized Loss at March 31, 2011 By Maturity
|
||||||||||||||||||||||||
Less than 12 months
|
Greater than 12 months
|
Total
|
||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||
(Dollars in thousands)
|
Market Value
|
Depreciation
|
Market Value
|
Depreciation
|
Market Value
|
Depreciation
|
||||||||||||||||||
Fixed maturity securities
|
||||||||||||||||||||||||
Due in one year or less
|
$ | 34,868 | $ | (814 | ) | $ | 23,691 | $ | (4,453 | ) | $ | 58,559 | $ | (5,267 | ) | |||||||||
Due in one year through five years
|
350,545 | (14,105 | ) | 107,273 | (8,167 | ) | 457,818 | (22,272 | ) | |||||||||||||||
Due in five years through ten years
|
219,300 | (5,770 | ) | 53,209 | (5,436 | ) | 272,509 | (11,206 | ) | |||||||||||||||
Due after ten years
|
393,885 | (22,704 | ) | 11,734 | (2,249 | ) | 405,619 | (24,953 | ) | |||||||||||||||
Asset-backed securities
|
4,012 | (17 | ) | - | - | 4,012 | (17 | ) | ||||||||||||||||
Mortgage-backed securities
|
22,489 | (319 | ) | - | (1 | ) | 22,489 | (320 | ) | |||||||||||||||
Total fixed maturity securities
|
$ | 1,025,099 | $ | (43,729 | ) | $ | 195,907 | $ | (20,306 | ) | $ | 1,221,006 | $ | (64,035 | ) |
Duration of Unrealized Loss at December 31, 2010 By Security Type
|
||||||||||||||||||||||||
Less than 12 months
|
Greater than 12 months
|
Total
|
||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||
(Dollars in thousands)
|
Market Value
|
Depreciation
|
Market Value
|
Depreciation
|
Market Value
|
Depreciation
|
||||||||||||||||||
Fixed maturity securities - available for sale
|
||||||||||||||||||||||||
U.S. Treasury securities and obligations of
|
||||||||||||||||||||||||
U.S. government agencies and corporations
|
$ | 47,985 | $ | (1,916 | ) | $ | 43,264 | $ | (3,230 | ) | $ | 91,249 | $ | (5,146 | ) | |||||||||
Obligations of U.S. states and political subdivisions
|
336,522 | (9,519 | ) | 171,812 | (15,410 | ) | 508,334 | (24,929 | ) | |||||||||||||||
Corporate securities
|
74,389 | (2,715 | ) | 33,109 | (7,060 | ) | 107,498 | (9,775 | ) | |||||||||||||||
Asset-backed securities
|
3,900 | (14 | ) | - | - | 3,900 | (14 | ) | ||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||||||||||
Agency residential
|
20,867 | (212 | ) | - | - | 20,867 | (212 | ) | ||||||||||||||||
Non-agency residential
|
- | - | 22,439 | (317 | ) | 22,439 | (317 | ) | ||||||||||||||||
Foreign government securities
|
92,123 | (3,776 | ) | 124,807 | (11,791 | ) | 216,930 | (15,567 | ) | |||||||||||||||
Foreign corporate securities
|
120,294 | (5,512 | ) | 121,304 | (15,666 | ) | 241,598 | (21,178 | ) | |||||||||||||||
Total fixed maturity securities
|
$ | 696,080 | $ | (23,664 | ) | $ | 516,735 | $ | (53,474 | ) | $ | 1,212,815 | $ | (77,138 | ) | |||||||||
Equity securities
|
- | - | 13 | (2 | ) | 13 | (2 | ) | ||||||||||||||||
Total
|
$ | 696,080 | $ | (23,664 | ) | $ | 516,748 | $ | (53,476 | ) | $ | 1,212,828 | $ | (77,140 | ) |
Duration of Unrealized Loss at December 31, 2010 By Maturity
|
||||||||||||||||||||||||
Less than 12 months
|
Greater than 12 months
|
Total
|
||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||
(Dollars in thousands)
|
Market Value
|
Depreciation
|
Market Value
|
Depreciation
|
Market Value
|
Depreciation
|
||||||||||||||||||
Fixed maturity securities
|
||||||||||||||||||||||||
Due in one year or less
|
$ | 5,982 | $ | (319 | ) | $ | 48,233 | $ | (8,089 | ) | $ | 54,215 | $ | (8,408 | ) | |||||||||
Due in one year through five years
|
186,524 | (9,059 | ) | 129,197 | (11,559 | ) | 315,721 | (20,618 | ) | |||||||||||||||
Due in five years through ten years
|
139,896 | (4,356 | ) | 92,692 | (8,215 | ) | 232,588 | (12,571 | ) | |||||||||||||||
Due after ten years
|
338,911 | (9,704 | ) | 224,174 | (25,294 | ) | 563,085 | (34,998 | ) | |||||||||||||||
Asset-backed securities
|
3,900 | (14 | ) | - | - | 3,900 | (14 | ) | ||||||||||||||||
Mortgage-backed securities
|
20,867 | (212 | ) | 22,439 | (317 | ) | 43,306 | (529 | ) | |||||||||||||||
Total fixed maturity securities
|
$ | 696,080 | $ | (23,664 | ) | $ | 516,735 | $ | (53,474 | ) | $ | 1,212,815 | $ | (77,138 | ) |
Three Months Ended
|
||||||||
March 31,
|
||||||||
(Dollars in thousands)
|
2011
|
2010
|
||||||
Fixed maturity securities
|
$ | 60,619 | $ | 73,555 | ||||
Equity securities
|
5,172 | 2,404 | ||||||
Short-term investments and cash
|
207 | 77 | ||||||
Other invested assets
|
||||||||
Limited partnerships
|
18,415 | 9,414 | ||||||
Dividends from Parent's shares
|
4,648 | 1,426 | ||||||
Other
|
597 | 372 | ||||||
Total gross investment income
|
89,658 | 87,248 | ||||||
Interest debited (credited) and other investment expense
|
(2,526 | ) | (2,141 | ) | ||||
Total net investment income
|
$ | 87,132 | $ | 85,107 |
Three Months Ended
|
||||||||
March 31,
|
||||||||
(Dollars in thousands)
|
2011
|
2010
|
||||||
Fixed maturity securities, market value:
|
||||||||
Other-than-temporary impairments
|
$ | (13,611 | ) | $ | - | |||
Gains (losses) from sales
|
(12,310 | ) | (777 | ) | ||||
Fixed maturity securities, fair value:
|
||||||||
Gains (losses) from sales
|
(1,515 | ) | 83 | |||||
Gains (losses) from fair value adjustments
|
(3,483 | ) | 3,000 | |||||
Equity securities, market value:
|
||||||||
Gains (losses) from sales
|
37 | - | ||||||
Equity securities, fair value:
|
||||||||
Gains (losses) from sales
|
1,872 | 1,894 | ||||||
Gains (losses) from fair value adjustments
|
38,130 | 13,231 | ||||||
Other invested assets, fair value:
|
||||||||
Gains (losses) from fair value adjustments
|
31,355 | (22,737 | ) | |||||
Short-term investment gains (losses)
|
1 | (1 | ) | |||||
Total net realized capital gains (losses)
|
$ | 40,476 | $ | (5,307 | ) |
Three Months Ended
|
||||||||
March 31,
|
||||||||
(Dollars in thousands)
|
2011
|
2010
|
||||||
Proceeds from sales of fixed maturity securities
|
$ | 549,673 | $ | 167,982 | ||||
Gross gains from sales
|
14,266 | 1,757 | ||||||
Gross losses from sales
|
(28,091 | ) | (2,451 | ) | ||||
Proceeds from sales of equity secuities
|
$ | 79,792 | $ | 21,342 | ||||
Gross gains from sales
|
2,380 | 2,370 | ||||||
Gross losses from sales
|
(471 | ) | (476 | ) |
Fair Value Measurement Using:
|
||||||||||||||||
Quoted Prices
|
||||||||||||||||
in Active
|
Significant
|
|||||||||||||||
Markets for
|
Other
|
Significant
|
||||||||||||||
Identical
|
Observable
|
Unobservable
|
||||||||||||||
Assets
|
Inputs
|
Inputs
|
||||||||||||||
(Dollars in thousands)
|
March 31, 2011
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Assets:
|
||||||||||||||||
Fixed maturities, market value
|
||||||||||||||||
U.S. Treasury securities and obligations of
|
||||||||||||||||
U.S. government agencies and corporations
|
$ | 84,145 | $ | - | $ | 84,145 | $ | - | ||||||||
Obligations of U.S. States and political subdivisions
|
2,480,184 | - | 2,480,184 | - | ||||||||||||
Corporate securities
|
829,720 | - | 829,720 | - | ||||||||||||
Asset-backed securities
|
25,127 | - | 18,854 | 6,273 | ||||||||||||
Mortgage-backed securities
|
||||||||||||||||
Commercial
|
38,948 | - | 38,948 | - | ||||||||||||
Agency residential
|
347,594 | - | 347,594 | - | ||||||||||||
Non-agency residential
|
28,814 | - | 28,366 | 448 | ||||||||||||
Foreign government securities
|
901,420 | - | 901,420 | - | ||||||||||||
Foreign corporate securities
|
698,024 | - | 697,505 | 519 | ||||||||||||
Total fixed maturities, market value
|
5,433,976 | - | 5,426,736 | 7,240 | ||||||||||||
Fixed maturities, fair value
|
143,708 | - | 143,708 | - | ||||||||||||
Equity securities, market value
|
13 | 13 | - | - | ||||||||||||
Equity securities, fair value
|
797,424 | 797,424 | - | - | ||||||||||||
Other invested assets, fair value
|
857,107 | 857,107 | - | - |
Fair Value Measurement Using:
|
||||||||||||||||
Quoted Prices
|
||||||||||||||||
in Active
|
Significant
|
|||||||||||||||
Markets for
|
Other
|
Significant
|
||||||||||||||
Identical
|
Observable
|
Unobservable
|
||||||||||||||
Assets
|
Inputs
|
Inputs
|
||||||||||||||
(Dollars in thousands)
|
December 31, 2010
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Assets:
|
||||||||||||||||
Fixed maturities, market value
|
||||||||||||||||
U.S. Treasury securities and obligations of
|
||||||||||||||||
U.S. government agencies and corporations
|
$ | 150,567 | $ | - | $ | 150,567 | $ | - | ||||||||
Obligations of U.S. States and political subdivisions
|
2,901,505 | - | 2,901,505 | - | ||||||||||||
Corporate securities
|
721,685 | - | 721,685 | - | ||||||||||||
Asset-backed securities
|
20,551 | - | 19,590 | 961 | ||||||||||||
Mortgage-backed securities
|
||||||||||||||||
Commercial
|
39,505 | - | 39,505 | - | ||||||||||||
Agency residential
|
369,691 | - | 369,691 | - | ||||||||||||
Non-agency residential
|
29,968 | - | 29,510 | 458 | ||||||||||||
Foreign government securities
|
749,041 | - | 749,041 | - | ||||||||||||
Foreign corporate securities
|
617,427 | - | 613,792 | 3,635 | ||||||||||||
Total fixed maturities, market value
|
5,599,940 | - | 5,594,886 | 5,054 | ||||||||||||
Fixed maturities, fair value
|
180,482 | - | 180,482 | - | ||||||||||||
Equity securities, market value
|
13 | 13 | - | - | ||||||||||||
Equity securities, fair value
|
683,454 | 683,454 | - | - | ||||||||||||
Other invested assets, fair value
|
788,142 | 788,142 | - | - |
Three Months Ended March 31, 2011
|
Three Months Ended March 31, 2010
|
|||||||||||||||||||||||||||||||
Asset-backed
|
Foreign
|
Non-agency
|
Corporate
|
Asset-backed
|
Non-agency
|
|||||||||||||||||||||||||||
(Dollars in thousands)
|
Securities
|
Corporate
|
RMBS
|
Total
|
Securities
|
Securities
|
RMBS
|
Total
|
||||||||||||||||||||||||
Beginning balance
|
$ | 961 | $ | 3,635 | $ | 458 | $ | 5,054 | $ | 6,930 | $ | 6,258 | $ | 426 | $ | 13,614 | ||||||||||||||||
Total gains or (losses) (realized/unrealized)
|
||||||||||||||||||||||||||||||||
Included in earnings (or changes in net assets)
|
- | - | 21 | 21 | - | - | 25 | 25 | ||||||||||||||||||||||||
Included in other comprehensive income (loss)
|
(63 | ) | - | - | (63 | ) | - | (78 | ) | 41 | (37 | ) | ||||||||||||||||||||
Purchases, issuances and settlements
|
138 | - | (31 | ) | 107 | - | 188 | (36 | ) | 152 | ||||||||||||||||||||||
Transfers in and/or (out) of Level 3
|
5,237 | (3,116 | ) | - | 2,121 | - | - | - | - | |||||||||||||||||||||||
Ending balance
|
$ | 6,273 | $ | 519 | $ | 448 | $ | 7,240 | $ | 6,930 | $ | 6,368 | $ | 456 | $ | 13,754 | ||||||||||||||||
The amount of total gains or losses for the period included
|
||||||||||||||||||||||||||||||||
in earnings (or changes in net assets) attributable to the
|
||||||||||||||||||||||||||||||||
change in unrealized gains or losses relating to assets
|
||||||||||||||||||||||||||||||||
still held at the reporting date
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
(Some amounts may not reconcile due to rounding.)
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
(Dollars in thousands)
|
2011
|
2010
|
||||||
Gross basis:
|
||||||||
Beginning of period reserves
|
$ | 554,790 | $ | 638,674 | ||||
Incurred losses
|
- | - | ||||||
Paid losses
|
(19,026 | ) | (13,466 | ) | ||||
End of period reserves
|
$ | 535,764 | $ | 625,208 | ||||
Net basis:
|
||||||||
Beginning of period reserves
|
$ | 382,507 | $ | 430,421 | ||||
Incurred losses
|
- | - | ||||||
Paid losses
|
(14,363 | ) | (11,191 | ) | ||||
End of period reserves
|
$ | 368,144 | $ | 419,230 |
(Dollars in thousands)
|
At March 31, 2011
|
At December 31, 2010
|
||||||
$ | 143,087 | $ | 150,560 |
(Dollars in thousands)
|
At March 31, 2011
|
At December 31, 2010
|
||||||
$ | 26,468 | $ | 26,542 |
Three Months Ended
|
||||||||
March 31,
|
||||||||
(Dollars in thousands)
|
2011
|
2010
|
||||||
Unrealized appreciation (depreciation) ("URA(D)") on
|
||||||||
securities arising during the period
|
||||||||
URA(D) of investments - temporary
|
$ | (15,503 | ) | $ | 3,666 | |||
URA(D) of investments - non-credit OTTI
|
20 | 3,051 | ||||||
Tax benefit (expense) from URA(D) arising during the period
|
5,419 | (2,351 | ) | |||||
Total URA(D) on securities arising during the period, net of tax
|
(10,064 | ) | 4,366 | |||||
Foreign currency translation adjustments
|
15,900 | 10,726 | ||||||
Tax benefit (expense) from foreign currency translation
|
(5,565 | ) | (3,754 | ) | ||||
Net foreign currency translation adjustments
|
10,335 | 6,972 | ||||||
Pension adjustments
|
1,148 | 628 | ||||||
Tax benefit (expense) on pension
|
(402 | ) | (220 | ) | ||||
Net pension adjustments
|
746 | 408 | ||||||
Other comprehensive income (loss), net of tax
|
$ | 1,017 | $ | 11,746 |
At March 31,
|
At December 31,
|
|||||||
(Dollars in thousands)
|
2011
|
2010
|
||||||
URA(D) on securities, net of deferred taxes
|
||||||||
Temporary
|
$ | 95,398 | $ | 104,149 | ||||
Non-credit, OTTI
|
548 | 1,860 | ||||||
Total unrealized appreciation (depreciation) on investments, net of deferred taxes
|
95,946 | 106,009 | ||||||
Foreign currency translation adjustments, net of deferred taxes
|
94,374 | 84,040 | ||||||
Pension adjustments, net of deferred taxes
|
(25,337 | ) | (26,083 | ) | ||||
Accumulated other comprehensive income (loss)
|
$ | 164,983 | $ | 163,966 |
(Dollars in thousands)
|
At March 31, 2011
|
At December 31, 2010
|
||||||||||||||||||
Bank
|
Commitment
|
In Use
|
Date of Loan
|
Maturity/Expiry Date
|
Commitment
|
In Use
|
Date of Loan
|
Maturity/Expiry Date
|
||||||||||||
Citibank Holdings Credit Facility
|
$ | 150,000 | $ | 15,000 |
2/18/2011
|
6/16/2011
|
$ | 150,000 | $ | 50,000 |
12/16/2010
|
1/18/2011
|
||||||||
10,000 |
2/28/2011
|
6/28/2011
|
- | |||||||||||||||||
15,000 |
3/02/2011
|
6/06/2011
|
- | |||||||||||||||||
Total revolving credit borrowings
|
40,000 | 50,000 | ||||||||||||||||||
Total letters of credit
|
9,527 |
12/31/2011
|
9,527 |
12/31/2011
|
||||||||||||||||
Total Citibank Holdings Credit Facility
|
$ | 150,000 | $ | 49,527 | $ | 150,000 | $ | 59,527 |
Three Months Ended
|
||||||||
March 31,
|
||||||||
(Dollars in thousands)
|
2011
|
2010
|
||||||
Credit facility fees incurred
|
$ | 90 | $ | 9 |
March 31, 2011
|
December 31, 2010
|
|||||||||||||||||
Consolidated Balance
|
Consolidated Balance
|
|||||||||||||||||
(Dollars in thousands)
|
Date Issued
|
Date Due
|
Principal Amounts
|
Sheet Amount
|
Market Value
|
Sheet Amount
|
Market Value
|
|||||||||||
5.40% Senior notes
|
10/12/2004
|
10/15/2014
|
$ | 250,000 | $ | 249,824 | $ | 270,030 | $ | 249,812 | $ | 267,500 | ||||||
8.75% Senior notes (matured and paid on March 15, 2010)
|
03/14/2000
|
03/15/2010
|
$ | 200,000 | $ | - | $ | - | $ | - | $ | - |
Three Months Ended
|
||||||||
March 31,
|
||||||||
(Dollars in thousands)
|
2011
|
2010
|
||||||
Interest expense incurred
|
$ | 3,386 | $ | 7,062 |
Maturity Date
|
March 31, 2011
|
December 31, 2010
|
||||||||||||||||||||||
Original
|
Consolidated Balance
|
Consolidated Balance
|
||||||||||||||||||||||
(Dollars in thousands)
|
Date Issued
|
Principal Amount
|
Scheduled
|
Final
|
Sheet Amount
|
Market Value
|
Sheet Amount
|
Market Value
|
||||||||||||||||
6.6% Long term subordinated notes
|
04/26/2007
|
$ | 400,000 |
05/15/2037
|
05/01/2067
|
$ | 238,352 | $ | 233,789 | $ | 238,351 | $ | 227,825 |
Three Months Ended
|
||||||||
March 31,
|
||||||||
(Dollars in thousands)
|
2011
|
2010
|
||||||
Interest expense incurred
|
$ | 3,937 | $ | 3,937 |
March 31, 2011
|
December 31, 2010
|
|||||||||||||||||
Consolidated Balance
|
Consolidated Balance
|
|||||||||||||||||
(Dollars in thousands)
|
Date Issued
|
Date Due
|
Amount Issued
|
Sheet Amount
|
Fair Value
|
Sheet Amount
|
Fair Value
|
|||||||||||
6.20% Junior subordinated debt securities
|
03/29/2004
|
03/29/2034
|
$ | 329,897 | $ | 329,897 | $ | 308,265 | $ | 329,897 | $ | 294,825 |
Three Months Ended
|
||||||||
March 31,
|
||||||||
(Dollars in thousands)
|
2011
|
2010
|
||||||
Interest expense incurred
|
$ | 5,113 | $ | 5,113 |
Three Months Ended
|
||||||||
U.S. Reinsurance
|
March 31,
|
|||||||
(Dollars in thousands)
|
2011
|
2010
|
||||||
Gross written premiums
|
$ | 253,907 | $ | 244,008 | ||||
Net written premiums
|
136,551 | 128,462 | ||||||
Premiums earned
|
$ | 145,155 | $ | 127,001 | ||||
Incurred losses and LAE
|
123,427 | 90,108 | ||||||
Commission and brokerage
|
37,105 | 27,218 | ||||||
Other underwriting expenses
|
7,902 | 7,806 | ||||||
Underwriting gain (loss)
|
$ | (23,279 | ) | $ | 1,869 |
Three Months Ended
|
||||||||
Insurance
|
March 31,
|
|||||||
(Dollars in thousands)
|
2011
|
2010
|
||||||
Gross written premiums
|
$ | 254,475 | $ | 228,237 | ||||
Net written premiums
|
125,026 | 102,467 | ||||||
Premiums earned
|
$ | 105,328 | $ | 101,166 | ||||
Incurred losses and LAE
|
85,518 | 72,950 | ||||||
Commission and brokerage
|
6,321 | 1,641 | ||||||
Other underwriting expenses
|
21,872 | 16,577 | ||||||
Underwriting gain (loss)
|
$ | (8,383 | ) | $ | 9,998 |
Three Months Ended
|
||||||||
Specialty Underwriting
|
March 31,
|
|||||||
(Dollars in thousands)
|
2011
|
2010
|
||||||
Gross written premiums
|
$ | 69,170 | $ | 65,887 | ||||
Net written premiums
|
40,382 | 37,239 | ||||||
Premiums earned
|
$ | 42,394 | $ | 38,898 | ||||
Incurred losses and LAE
|
25,257 | 27,461 | ||||||
Commission and brokerage
|
7,965 | 8,535 | ||||||
Other underwriting expenses
|
2,004 | 1,951 | ||||||
Underwriting gain (loss)
|
$ | 7,168 | $ | 951 |
Three Months Ended
|
||||||||
International
|
March 31,
|
|||||||
(Dollars in thousands)
|
2011
|
2010
|
||||||
Gross written premiums
|
$ | 308,847 | $ | 275,350 | ||||
Net written premiums
|
158,124 | 145,209 | ||||||
Premiums earned
|
$ | 166,516 | $ | 147,069 | ||||
Incurred losses and LAE
|
318,826 | 236,485 | ||||||
Commission and brokerage
|
37,121 | 30,447 | ||||||
Other underwriting expenses
|
6,439 | 6,380 | ||||||
Underwriting gain (loss)
|
$ | (195,870 | ) | $ | (126,243 | ) |
Three Months Ended
|
||||||||
March 31,
|
||||||||
(Dollars in thousands)
|
2011
|
2010
|
||||||
Underwriting gain (loss)
|
$ | (220,364 | ) | $ | (113,425 | ) | ||
Net investment income
|
87,132 | 85,107 | ||||||
Net realized capital gains (losses)
|
40,476 | (5,307 | ) | |||||
Corporate expense
|
(1,190 | ) | (2,226 | ) | ||||
Interest, fee and bond issue cost amortization expense
|
(12,682 | ) | (16,340 | ) | ||||
Other income (expense)
|
32 | 5,112 | ||||||
Income (loss) before taxes
|
$ | (106,596 | ) | $ | (47,079 | ) |
Three Months Ended
|
||||||||
March 31,
|
||||||||
(Dollars in thousands)
|
2011
|
2010
|
||||||
Canada
|
$ | 43,952 | $ | 35,303 |
Common Shares
|
||
Authorized for
|
||
Amendment Date
|
Repurchase
|
|
09/21/2004
|
5,000,000
|
|
07/21/2008
|
5,000,000
|
|
02/24/2010
|
5,000,000
|
|
15,000,000
|
(Dollars in thousands)
|
||||
Total purchase price
|
$ | 835,371 |
Three Months Ended
|
||||||||
March 31,
|
||||||||
(Dollars in thousands)
|
2011
|
2010
|
||||||
Dividends received
|
$ | 4,648 | $ | 1,426 |
Three Months Ended
|
||||||||
March 31,
|
||||||||
(Dollars in thousands)
|
2011
|
2010
|
||||||
Expenses incurred
|
$ | 15,077 | $ | 14,901 |
(Dollars in thousands)
|
||||||||||||||||||||
Percent
|
Assuming
|
Single
|
Aggregate
|
|||||||||||||||||
Coverage Period
|
Ceding Company
|
Ceded
|
Company
|
Type of Business
|
Occurrence Limit
|
Limit
|
||||||||||||||
01/01/2002-12/31/2002
|
Everest Re
|
20.0 | % |
Bermuda Re
|
property / casualty business
|
$ | - | $ | - | |||||||||||
01/01/2003-12/31/2003
|
Everest Re
|
25.0 | % |
Bermuda Re
|
property / casualty business
|
- | - | |||||||||||||
01/01/2004-12/31/2005
|
Everest Re
|
22.5 | % |
Bermuda Re
|
property / casualty business
|
- | - | |||||||||||||
Everest Re | 2.5 | % |
Everest International
|
property / casualty business
|
- | - | ||||||||||||||
01/01/2006-12/31/2006
|
Everest Re
|
18.0 | % |
Bermuda Re
|
property business
|
125,000 | (1) | - | ||||||||||||
Everest Re
|
2.0 | % |
Everest International
|
property business
|
- | - | ||||||||||||||
01/01/2006-12/31/2007
|
Everest Re
|
31.5 | % |
Bermuda Re
|
casualty business
|
- | - | |||||||||||||
Everest Re
|
3.5 | % |
Everest International
|
casualty business
|
- | - | ||||||||||||||
01/01/2007-12/31/2007
|
Everest Re
|
22.5 | % |
Bermuda Re
|
property business
|
130,000 | (1) | - | ||||||||||||
Everest Re
|
2.5 | % |
Everest International
|
property business
|
- | - | ||||||||||||||
01/01/2008-12/31/2008
|
Everest Re
|
36.0 | % |
Bermuda Re
|
property / casualty business
|
130,000 | (1) | 275,000 | (2) | |||||||||||
Everest Re
|
4.0 | % |
Everest International
|
property / casualty business
|
- | - | ||||||||||||||
01/01/2009-12/31/2009
|
Everest Re
|
36.0 | % |
Bermuda Re
|
property / casualty business
|
150,000 | (1) | 325,000 | (2) | |||||||||||
Everest Re
|
8.0 | % |
Everest International
|
property / casualty business
|
- | - | ||||||||||||||
01/01/2010-12/31/2010
|
Everest Re
|
44.0 | % |
Bermuda Re
|
property / casualty business
|
150,000 | 325,000 | |||||||||||||
01/01/2011
|
Everest Re
|
50.0 | % |
Bermuda Re
|
property / casualty business
|
150,000 | 300,000 | |||||||||||||
01/01/2003-12/31/2006
|
Everest Re- Canadian Branch
|
50.0 | % |
Bermuda Re
|
property business
|
- | - | |||||||||||||
01/01/2007-12/31/2009
|
Everest Re- Canadian Branch
|
60.0 | % |
Bermuda Re
|
property business
|
- | - | |||||||||||||
01/01/2010-12/31/2010
|
Everest Re- Canadian Branch
|
60.0 | % |
Bermuda Re
|
property business
|
350,000 | - | |||||||||||||
01/01/2011
|
Everest Re- Canadian Branch
|
60.0 | % |
Bermuda Re
|
property business
|
350,000 | - | |||||||||||||
(1) The single occurance limit is applied before the loss cessions to either Bermuda Re or Everest International.
|
||||||||||||||||||||
(2) The aggregate limit is applied before the loss cessions to either Bermuda Re or Everest International.
|
Liability Limits
|
||||||||
(Dollars in thousands)
|
Exceeding
|
Not to Exceed
|
||||||
Losses per one occurrence
|
$ | 100,000 | $ | 150,000 |
(Dollars in thousands)
|
|||||||||
Effective
|
Transferring
|
Assuming
|
% of Business or
|
Covered Period
|
|||||
Date
|
Company
|
Company
|
Amount of Transfer
|
of Transfer
|
|||||
09/19/2000
|
Mt. McKinley
|
Bermuda Re
|
100 | % |
All years
|
||||
10/01/2001
|
Everest Re (Belgium Branch)
|
Bermuda Re
|
100 | % |
All years
|
||||
10/01/2008
|
Everest Re
|
Bermuda Re
|
$ | 747,022 |
01/01/2002-12/31/2007
|
Three Months Ended
|
||||||||
Bermuda Re
|
March 31,
|
|||||||
(Dollars in thousands)
|
2011
|
2010
|
||||||
Ceded written premiums
|
$ | 380,808 | $ | 320,031 | ||||
Ceded earned premiums
|
380,047 | 288,158 | ||||||
Ceded losses and LAE (a)
|
490,713 | 288,446 | ||||||
Three Months Ended
|
||||||||
Everest International
|
March 31,
|
|||||||
(Dollars in thousands)
|
2011 | 2010 | ||||||
Ceded written premiums
|
$ | 464 | $ | 28,312 | ||||
Ceded earned premiums
|
9,605 | 40,332 | ||||||
Ceded losses and LAE
|
2,918 | 24,016 |
Three Months Ended
|
Percentage
|
|||||||||||
March 31,
|
Increase/
|
|||||||||||
(Dollars in millions)
|
2011
|
2010
|
(Decrease)
|
|||||||||
Gross written premiums
|
$ | 886.4 | $ | 813.5 | 9.0 | % | ||||||
Net written premiums
|
460.1 | 413.4 | 11.3 | % | ||||||||
REVENUES:
|
||||||||||||
Premiums earned
|
$ | 459.4 | $ | 414.1 | 10.9 | % | ||||||
Net investment income
|
87.1 | 85.1 | 2.4 | % | ||||||||
Net realized capital gains (losses)
|
40.5 | (5.3 | ) |
NM
|
||||||||
Other income (expense)
|
- | 5.1 | -99.3 | % | ||||||||
Total revenues
|
587.0 | 499.0 | 17.6 | % | ||||||||
CLAIMS AND EXPENSES:
|
||||||||||||
Incurred losses and loss adjustment expenses
|
553.0 | 427.0 | 29.5 | % | ||||||||
Commission, brokerage, taxes and fees
|
88.5 | 67.8 | 30.5 | % | ||||||||
Other underwriting expenses
|
38.2 | 32.7 | 16.8 | % | ||||||||
Corporate expense
|
1.2 | 2.2 | -46.6 | % | ||||||||
Interest, fee and bond issue cost amortization expense
|
12.7 | 16.3 | -22.4 | % | ||||||||
Total claims and expenses
|
693.6 | 546.1 | 27.0 | % | ||||||||
INCOME (LOSS) BEFORE TAXES
|
(106.6 | ) | (47.1 | ) | 126.4 | % | ||||||
Income tax expense (benefit)
|
(9.1 | ) | (2.2 | ) |
NM
|
|||||||
NET INCOME (LOSS)
|
$ | (97.5 | ) | $ | (44.9 | ) | 117.1 | % | ||||
RATIOS:
|
Point Change
|
|||||||||||
Loss ratio
|
120.4 | % | 103.1 | % | 17.3 | |||||||
Commission and brokerage ratio
|
19.3 | % | 16.4 | % | 2.9 | |||||||
Other underwriting expense ratio
|
8.3 | % | 7.9 | % | 0.4 | |||||||
Combined ratio
|
148.0 | % | 127.4 | % | 20.6 | |||||||
At
|
At
|
Percentage
|
||||||||||
March 31,
|
December 31,
|
Increase/
|
||||||||||
(Dollars in millions)
|
2011 | 2010 |
(Decrease)
|
|||||||||
Balance sheet data:
|
||||||||||||
Total investments and cash
|
$ | 8,158.8 | $ | 8,293.9 | -1.6 | % | ||||||
Total assets
|
14,401.2 | 13,869.4 | 3.8 | % | ||||||||
Loss and loss adjustment expense reserves
|
8,143.5 | 7,652.3 | 6.4 | % | ||||||||
Total debt
|
858.1 | 868.1 | -1.2 | % | ||||||||
Total liabilities
|
11,368.4 | 10,741.7 | 5.8 | % | ||||||||
Stockholder's equity
|
3,032.8 | 3,127.7 | -3.0 | % | ||||||||
(NM, not meaningful)
|
||||||||||||
(Some amounts may not reconcile due to rounding.)
|
Three Months Ended March 31,
|
|||||||||||||||||||||||||||
Current
|
Ratio %/
|
Prior
|
Ratio %/
|
Total
|
Ratio %/
|
||||||||||||||||||||||
(Dollars in millions)
|
Year
|
Pt Change
|
Years
|
Pt Change
|
Incurred
|
Pt Change
|
|||||||||||||||||||||
2011
|
|||||||||||||||||||||||||||
Attritional (a)
|
$ | 256.5 | 55.9 | % | $ | (10.5 | ) | -2.3 | % | $ | 246.0 | 53.6 | % | ||||||||||||||
Catastrophes (b)
|
304.3 | 66.2 | % | 2.7 | 0.6 | % | 307.0 | 66.8 | % | ||||||||||||||||||
A&E
|
- | 0.0 | % | - | 0.0 | % | - | 0.0 | % | ||||||||||||||||||
Total
|
$ | 560.8 | 122.1 | % | $ | (7.8 | ) | -1.7 | % | $ | 553.0 | 120.4 | % | ||||||||||||||
2010
|
|||||||||||||||||||||||||||
Attritional (a)
|
$ | 268.2 | 64.8 | % | $ | (9.3 | ) | -2.2 | % | $ | 259.0 | 62.5 | % | ||||||||||||||
Catastrophes (b)
|
165.2 | 39.9 | % | 2.8 | 0.7 | % | 168.0 | 40.6 | % | ||||||||||||||||||
A&E
|
- | 0.0 | % | - | 0.0 | % | - | 0.0 | % | ||||||||||||||||||
Total
|
$ | 433.4 | 104.7 | % | $ | (6.4 | ) | -1.6 | % | $ | 427.0 | 103.1 | % | ||||||||||||||
Variance 2011/2010
|
|||||||||||||||||||||||||||
Attritional (a)
|
$ | (11.7 | ) | (8.9 | ) |
pts
|
$ | (1.2 | ) | (0.1 | ) |
pts
|
$ | (13.0 | ) | (8.9 | ) |
pts
|
|||||||||
Catastrophes
|
139.1 | 26.3 |
pts
|
(0.1 | ) | (0.1 | ) |
pts
|
139.0 | 26.2 |
pts
|
||||||||||||||||
A&E
|
- | - |
pts
|
- | - |
pts
|
- | - |
pts
|
||||||||||||||||||
Total
|
$ | 127.4 | 17.4 |
pts
|
$ | (1.4 | ) | (0.1 | ) |
pts
|
$ | 126.0 | 17.3 |
pts
|
|||||||||||||
(a) Attritional losses exclude catastrophe and Asbestos and Environmental ("A&E") losses.
|
|||||||||||||||||||||||||||
(b) For the March 2011 reporting period, a catastrophe is a property event with expected reported losses of at least $10.0 million. For the March 2010 reporting period,
|
|||||||||||||||||||||||||||
a catastrophe was a property event with expected reported losses of at least $5.0 million.
|
|||||||||||||||||||||||||||
(Some amounts may not reconcile due to rounding.)
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
(Dollars in millions)
|
2011
|
2010
|
||||||
Fixed maturities
|
$ | 60.6 | $ | 73.6 | ||||
Equity securities
|
5.2 | 2.4 | ||||||
Short-term investments and cash
|
0.2 | 0.1 | ||||||
Other invested assets
|
||||||||
Limited partnerships
|
18.4 | 9.4 | ||||||
Dividends from Parent's shares
|
4.6 | 1.4 | ||||||
Other
|
0.6 | 0.4 | ||||||
Total gross investment income
|
89.7 | 87.2 | ||||||
Interest debited (credited) and other expense
|
(2.5 | ) | (2.1 | ) | ||||
Total net investment income
|
$ | 87.1 | $ | 85.1 | ||||
(Some amounts may not reconcile due to rounding.)
|
At
|
At
|
||
March 31,
|
December 31,
|
||
2011
|
2010
|
||
Imbedded pre-tax yield of cash and invested assets
|
3.5%
|
3.6%
|
|
Imbedded after-tax yield of cash and invested assets
|
2.7%
|
2.8%
|
Three Months Ended
|
|||
March 31,
|
|||
2011
|
2010
|
||
Annualized pre-tax yield on average cash and invested assets
|
4.4%
|
4.4%
|
|
Annualized after-tax yield on average cash and invested assets
|
3.4%
|
3.5%
|
Three Months Ended March 31,
|
||||||||||||
(Dollars in millions)
|
2011
|
2010
|
Variance
|
|||||||||
Gains (losses) from sales:
|
||||||||||||
Fixed maturity securities, market value
|
||||||||||||
Gains
|
$ | 14.1 | $ | 1.7 | $ | 12.4 | ||||||
Losses
|
(26.4 | ) | (2.5 | ) | (23.9 | ) | ||||||
Total
|
(12.3 | ) | (0.8 | ) | (11.5 | ) | ||||||
Fixed maturity securities, fair value
|
||||||||||||
Gains
|
0.2 | 0.1 | 0.1 | |||||||||
Losses
|
(1.7 | ) | - | (1.7 | ) | |||||||
Total
|
(1.5 | ) | 0.1 | (1.6 | ) | |||||||
Equity securities, market value
|
||||||||||||
Gains
|
0.2 | - | 0.2 | |||||||||
Losses
|
(0.2 | ) | - | (0.2 | ) | |||||||
Total
|
- | - | - | |||||||||
Equity securities, fair value
|
||||||||||||
Gains
|
2.2 | 2.4 | (0.2 | ) | ||||||||
Losses
|
(0.3 | ) | (0.5 | ) | 0.2 | |||||||
Total
|
1.9 | 1.9 | - | |||||||||
Total net realized gains (losses) from sales
|
||||||||||||
Gains
|
16.7 | 4.2 | 12.5 | |||||||||
Losses
|
(28.6 | ) | (3.0 | ) | (25.6 | ) | ||||||
Total
|
(11.9 | ) | 1.2 | (13.1 | ) | |||||||
Other-than-temporary impairments:
|
(13.6 | ) | - | (13.6 | ) | |||||||
Gains (losses) from fair value adjustments:
|
||||||||||||
Fixed maturities, fair value
|
(3.5 | ) | 3.0 | (6.5 | ) | |||||||
Equity securities, fair value
|
38.1 | 13.2 | 24.9 | |||||||||
Other invested assets, fair value
|
31.4 | (22.7 | ) | 54.1 | ||||||||
Total
|
66.0 | (6.5 | ) | 72.5 | ||||||||
Total net realized capital gains (losses)
|
$ | 40.5 | $ | (5.3 | ) | $ | 45.8 | |||||
(Some amounts may not reconcile due to rounding.)
|
Three Months Ended March 31,
|
||||||||||||||||
(Dollars in millions)
|
2011
|
2010
|
Variance
|
% Change
|
||||||||||||
Gross written premiums
|
$ | 253.9 | $ | 244.0 | $ | 9.9 | 4.1 | % | ||||||||
Net written premiums
|
136.6 | 128.5 | 8.1 | 6.3 | % | |||||||||||
Premiums earned
|
$ | 145.2 | $ | 127.0 | $ | 18.2 | 14.3 | % | ||||||||
Incurred losses and LAE
|
123.4 | 90.1 | 33.3 | 37.0 | % | |||||||||||
Commission and brokerage
|
37.1 | 27.2 | 9.9 | 36.3 | % | |||||||||||
Other underwriting expenses
|
7.9 | 7.8 | 0.1 | 1.2 | % | |||||||||||
Underwriting gain (loss)
|
$ | (23.3 | ) | $ | 1.9 | $ | (25.1 | ) |
NM
|
|||||||
Point Chg
|
||||||||||||||||
Loss ratio
|
85.0 | % | 71.0 | % | 14.0 | |||||||||||
Commission and brokerage ratio
|
25.6 | % | 21.4 | % | 4.2 | |||||||||||
Other underwriting expense ratio
|
5.4 | % | 6.1 | % | (0.7 | ) | ||||||||||
Combined ratio
|
116.0 | % | 98.5 | % | 17.5 | |||||||||||
(NM, not meaningful)
|
||||||||||||||||
(Some amounts may not reconcile due to rounding.)
|
Three Months Ended March 31,
|
|||||||||||||||||||||||||||
Current
|
Ratio %/
|
Prior
|
Ratio %/
|
Total
|
Ratio %/
|
||||||||||||||||||||||
(Dollars in millions)
|
Year
|
Pt Change
|
Years
|
Pt Change
|
Incurred
|
Pt Change
|
|||||||||||||||||||||
2011
|
|||||||||||||||||||||||||||
Attritional
|
$ | 66.5 | 45.8 | % | $ | (1.7 | ) | -1.1 | % | $ | 64.8 | 44.7 | % | ||||||||||||||
Catastrophes
|
57.8 | 39.8 | % | 0.8 | 0.5 | % | 58.6 | 40.3 | % | ||||||||||||||||||
A&E
|
- | 0.0 | % | - | 0.0 | % | - | 0.0 | % | ||||||||||||||||||
Total segment
|
$ | 124.3 | 85.6 | % | $ | (0.9 | ) | -0.6 | % | $ | 123.4 | 85.0 | % | ||||||||||||||
2010
|
|||||||||||||||||||||||||||
Attritional
|
$ | 76.2 | 60.0 | % | $ | (4.2 | ) | -3.3 | % | $ | 71.9 | 56.6 | % | ||||||||||||||
Catastrophes
|
15.7 | 12.3 | % | 2.5 | 2.0 | % | 18.2 | 14.3 | % | ||||||||||||||||||
A&E
|
- | 0.0 | % | - | 0.0 | % | - | 0.0 | % | ||||||||||||||||||
Total segment
|
$ | 91.9 | 72.3 | % | $ | (1.7 | ) | -1.4 | % | $ | 90.1 | 71.0 | % | ||||||||||||||
Variance 2011/2010
|
|||||||||||||||||||||||||||
Attritional
|
$ | (9.7 | ) | (14.2 | ) |
pts
|
$ | 2.5 | 2.2 |
pts
|
$ | (7.1 | ) | (11.9 | ) |
pts
|
|||||||||||
Catastrophes
|
42.1 | 27.5 |
pts
|
(1.7 | ) | (1.5 | ) |
pts
|
40.4 | 26.0 |
pts
|
||||||||||||||||
A&E
|
- | - |
pts
|
- | - |
pts
|
- | - |
pts
|
||||||||||||||||||
Total segment
|
$ | 32.4 | 13.3 |
pts
|
$ | 0.8 | 0.8 |
pts
|
$ | 33.3 | 14.0 |
pts
|
|||||||||||||||
(Some amounts may not reconcile due to rounding.)
|
Three Months Ended March 31,
|
||||||||||||||||
(Dollars in millions)
|
2011
|
2010
|
Variance
|
% Change
|
||||||||||||
Gross written premiums
|
$ | 254.5 | $ | 228.2 | $ | 26.2 | 11.5 | % | ||||||||
Net written premiums
|
125.0 | 102.5 | 22.6 | 22.0 | % | |||||||||||
Premiums earned
|
$ | 105.3 | $ | 101.2 | $ | 4.2 | 4.1 | % | ||||||||
Incurred losses and LAE
|
85.5 | 73.0 | 12.6 | 17.2 | % | |||||||||||
Commission and brokerage
|
6.3 | 1.6 | 4.7 |
NM
|
||||||||||||
Other underwriting expenses
|
21.9 | 16.6 | 5.3 | 31.9 | % | |||||||||||
Underwriting gain (loss)
|
$ | (8.4 | ) | $ | 10.0 | $ | (18.4 | ) | -183.8 | % | ||||||
Point Chg
|
||||||||||||||||
Loss ratio
|
81.2 | % | 72.1 | % | 9.1 | |||||||||||
Commission and brokerage ratio
|
6.0 | % | 1.6 | % | 4.4 | |||||||||||
Other underwriting expense ratio
|
20.8 | % | 16.4 | % | 4.4 | |||||||||||
Combined ratio
|
108.0 | % | 90.1 | % | 17.9 | |||||||||||
(NM, not meaningful)
|
||||||||||||||||
(Some amounts may not reconcile due to rounding.)
|
Three Months Ended March 31,
|
|||||||||||||||||||||||||||
Current
|
Ratio %/
|
Prior
|
Ratio %/
|
Total
|
Ratio %/
|
||||||||||||||||||||||
(Dollars in millions)
|
Year
|
Pt Change
|
Years
|
Pt Change
|
Incurred
|
Pt Change
|
|||||||||||||||||||||
2011
|
|||||||||||||||||||||||||||
Attritional
|
$ | 89.7 | 85.2 | % | $ | (4.2 | ) | -4.0 | % | $ | 85.5 | 81.2 | % | ||||||||||||||
Catastrophes
|
- | 0.0 | % | - | 0.0 | % | - | 0.0 | % | ||||||||||||||||||
Total segment
|
$ | 89.7 | 85.2 | % | $ | (4.2 | ) | -4.0 | % | $ | 85.5 | 81.2 | % | ||||||||||||||
2010
|
|||||||||||||||||||||||||||
Attritional
|
$ | 74.2 | 73.4 | % | $ | (1.3 | ) | -1.2 | % | $ | 73.0 | 72.1 | % | ||||||||||||||
Catastrophes
|
- | 0.0 | % | - | 0.0 | % | - | 0.0 | % | ||||||||||||||||||
Total segment
|
$ | 74.2 | 73.4 | % | $ | (1.3 | ) | -1.2 | % | $ | 73.0 | 72.1 | % | ||||||||||||||
Variance 2011/2010
|
|||||||||||||||||||||||||||
Attritional
|
$ | 15.5 | 11.8 |
pts
|
$ | (2.9 | ) | (2.8 | ) |
pts
|
$ | 12.6 | 9.1 |
pts
|
|||||||||||||
Catastrophes
|
- | - |
pts
|
- | - |
pts
|
- | - |
pts
|
||||||||||||||||||
Total segment
|
$ | 15.5 | 11.8 |
pts
|
$ | (2.9 | ) | (2.8 | ) |
pts
|
$ | 12.6 | 9.1 |
pts
|
|||||||||||||
(Some amounts may not reconcile due to rounding.)
|
Three Months Ended March 31,
|
||||||||||||||||
(Dollars in millions)
|
2011
|
2010
|
Variance
|
% Change
|
||||||||||||
Gross written premiums
|
$ | 69.2 | $ | 65.9 | $ | 3.3 | 5.0 | % | ||||||||
Net written premiums
|
40.4 | 37.2 | 3.1 | 8.4 | % | |||||||||||
Premiums earned
|
$ | 42.4 | $ | 38.9 | $ | 3.5 | 9.0 | % | ||||||||
Incurred losses and LAE
|
25.3 | 27.5 | (2.2 | ) | -8.0 | % | ||||||||||
Commission and brokerage
|
8.0 | 8.5 | (0.6 | ) | -6.7 | % | ||||||||||
Other underwriting expenses
|
2.0 | 2.0 | 0.1 | 2.7 | % | |||||||||||
Underwriting gain (loss)
|
$ | 7.2 | $ | 1.0 | $ | 6.2 |
NM
|
|||||||||
Point Chg
|
||||||||||||||||
Loss ratio
|
59.6 | % | 70.6 | % | (11.0 | ) | ||||||||||
Commission and brokerage ratio
|
18.8 | % | 21.9 | % | (3.1 | ) | ||||||||||
Other underwriting expense ratio
|
4.7 | % | 5.1 | % | (0.4 | ) | ||||||||||
Combined ratio
|
83.1 | % | 97.6 | % | (14.5 | ) | ||||||||||
(NM, not meaningful)
|
||||||||||||||||
(Some amounts may not reconcile due to rounding.)
|
Three Months Ended March 31,
|
|||||||||||||||||||||||||||
Current
|
Ratio %/
|
Prior
|
Ratio %/
|
Total
|
Ratio %/
|
||||||||||||||||||||||
(Dollars in millions)
|
Year
|
Pt Change
|
Years
|
Pt Change
|
Incurred
|
Pt Change
|
|||||||||||||||||||||
2011
|
|||||||||||||||||||||||||||
Attritional
|
$ | 26.0 | 61.4 | % | $ | (0.7 | ) | -1.7 | % | $ | 25.3 | 59.6 | % | ||||||||||||||
Catastrophes
|
- | 0.0 | % | - | 0.0 | % | - | 0.0 | % | ||||||||||||||||||
Total segment
|
$ | 26.0 | 61.4 | % | $ | (0.7 | ) | -1.7 | % | $ | 25.3 | 59.6 | % | ||||||||||||||
2010
|
|||||||||||||||||||||||||||
Attritional
|
$ | 26.6 | 68.3 | % | $ | (0.3 | ) | -0.7 | % | $ | 26.3 | 67.6 | % | ||||||||||||||
Catastrophes
|
- | 0.0 | % | 1.2 | 3.0 | % | 1.2 | 3.0 | % | ||||||||||||||||||
Total segment
|
$ | 26.6 | 68.3 | % | $ | 0.9 | 2.3 | % | $ | 27.5 | 70.6 | % | |||||||||||||||
Variance 2011/2010
|
|||||||||||||||||||||||||||
Attritional
|
$ | (0.6 | ) | (6.9 | ) |
pts
|
$ | (0.4 | ) | (1.0 | ) |
pts
|
$ | (1.0 | ) | (8.0 | ) |
pts
|
|||||||||
Catastrophes
|
- | - |
pts
|
(1.2 | ) | (3.0 | ) |
pts
|
(1.2 | ) | (3.0 | ) |
pts
|
||||||||||||||
Total segment
|
$ | (0.6 | ) | (6.9 | ) |
pts
|
$ | (1.6 | ) | (4.0 | ) |
pts
|
$ | (2.2 | ) | (11.0 | ) |
pts
|
|||||||||
(Some amounts may not reconcile due to rounding.)
|
Three Months Ended March 31,
|
||||||||||||||||
(Dollars in millions)
|
2011
|
2010
|
Variance
|
% Change
|
||||||||||||
Gross written premiums
|
$ | 308.8 | $ | 275.4 | $ | 33.5 | 12.2 | % | ||||||||
Net written premiums
|
158.1 | 145.2 | 12.9 | 8.9 | % | |||||||||||
Premiums earned
|
$ | 166.5 | $ | 147.1 | $ | 19.4 | 13.2 | % | ||||||||
Incurred losses and LAE
|
318.8 | 236.5 | 82.3 | 34.8 | % | |||||||||||
Commission and brokerage
|
37.1 | 30.4 | 6.7 | 21.9 | % | |||||||||||
Other underwriting expenses
|
6.4 | 6.4 | 0.1 | 0.9 | % | |||||||||||
Underwriting gain (loss)
|
$ | (195.9 | ) | $ | (126.2 | ) | $ | (69.6 | ) | 55.2 | % | |||||
Point Chg
|
||||||||||||||||
Loss ratio
|
191.5 | % | 160.8 | % | 30.7 | |||||||||||
Commission and brokerage ratio
|
22.3 | % | 20.7 | % | 1.6 | |||||||||||
Other underwriting expense ratio
|
3.8 | % | 4.3 | % | (0.5 | ) | ||||||||||
Combined ratio
|
217.6 | % | 185.8 | % | 31.8 | |||||||||||
(Some amounts may not reconcile due to rounding.)
|
Three Months Ended March 31,
|
|||||||||||||||||||||||||||
Current
|
Ratio %/
|
Prior
|
Ratio %/
|
Total
|
Ratio %/
|
||||||||||||||||||||||
(Dollars in millions)
|
Year
|
Pt Change
|
Years
|
Pt Change
|
Incurred
|
Pt Change
|
|||||||||||||||||||||
2011
|
|||||||||||||||||||||||||||
Attritional
|
$ | 74.2 | 44.6 | % | $ | (3.9 | ) | -2.3 | % | $ | 70.3 | 42.3 | % | ||||||||||||||
Catastrophes
|
246.5 | 148.0 | % | 2.0 | 1.2 | % | 248.5 | 149.2 | % | ||||||||||||||||||
Total segment
|
$ | 320.7 | 192.6 | % | $ | (1.9 | ) | -1.1 | % | $ | 318.8 | 191.5 | % | ||||||||||||||
2010
|
|||||||||||||||||||||||||||
Attritional
|
$ | 91.3 | 62.1 | % | $ | (3.5 | ) | -2.4 | % | $ | 87.8 | 59.7 | % | ||||||||||||||
Catastrophes
|
149.5 | 101.7 | % | (0.9 | ) | -0.6 | % | 148.7 | 101.1 | % | |||||||||||||||||
Total segment
|
$ | 240.8 | 163.7 | % | $ | (4.3 | ) | -2.9 | % | $ | 236.5 | 160.8 | % | ||||||||||||||
Variance 2011/2010
|
|||||||||||||||||||||||||||
Attritional
|
$ | (17.1 | ) | (17.5 | ) |
pts
|
$ | (0.4 | ) | 0.1 |
pts
|
$ | (17.5 | ) | (17.4 | ) |
pts
|
||||||||||
Catastrophes
|
97.0 | 46.3 |
pts
|
2.9 | 1.8 |
pts
|
99.8 | 48.1 |
pts
|
||||||||||||||||||
Total segment
|
$ | 79.9 | 28.9 |
pts
|
$ | 2.4 | 1.8 |
pts
|
$ | 82.3 | 30.7 |
pts
|
|||||||||||||||
(Some amounts may not reconcile due to rounding.)
|
Impact of Interest Rate Shift in Basis Points
|
||||||||||||||||||||
At March 31, 2011
|
||||||||||||||||||||
(Dollars in millions)
|
-200 | -100 | 0 | 100 | 200 | |||||||||||||||
Total Market/Fair Value
|
$ | 6,369.7 | $ | 6,168.2 | $ | 5,946.5 | $ | 5,706.1 | $ | 5,475.1 | ||||||||||
Market/Fair Value Change from Base (%)
|
7.1 | % | 3.7 | % | 0.0 | % | -4.0 | % | -7.9 | % | ||||||||||
Change in Unrealized Appreciation
|
||||||||||||||||||||
After-tax from Base ($)
|
$ | 275.1 | $ | 144.2 | $ | - | $ | (156.3 | ) | $ | (306.4 | ) |
Impact of Percentage Change in Equity Fair/Market Values
|
||||||||||||||||||||
At March 31, 2011
|
||||||||||||||||||||
(Dollars in millions)
|
-20% | -10% | 0% | 10% | 20% | |||||||||||||||
Fair/Market Value of the Equity Portfolio
|
$ | 638.0 | $ | 717.7 | $ | 797.4 | $ | 877.2 | $ | 956.9 | ||||||||||
After-tax Change in Fair/Market Value
|
(103.7 | ) | (51.8 | ) | - | 51.8 | 103.7 |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
ITEM 4. | RESERVED |
ITEM 5. | OTHER INFORMATION |
ITEM 6. | EXHIBITS |
Exhibit No. | Description |
31.1 | Section 302 Certification of Joseph V. Taranto |
31.2 | Section 302 Certification of Dominic J. Addesso |
32.1 | Section 906 Certification of Joseph V. Taranto and Dominic J. Addesso |
Everest Reinsurance Holdings, Inc.
|
||||||||||
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 thereunto duly authorized.
|
||||||||||
|
||||||||||
Everest Reinsurance Holdings, Inc.
|
||||||||||
(Registrant)
|
||||||||||
/S/ DOMINIC J. ADDESSO
|
||||||||||
Dominic J. Addesso
|
||||||||||
Executive Vice President and
|
||||||||||
Chief Financial Officer
|
||||||||||
(Duly Authorized Officer and Principal Financial Officer)
|
||||||||||
Dated: May 13, 2011
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Everest Reinsurance Holdings, Inc.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
/S/ JOSEPH V. TARANTO
|
|||
Joseph V. Taranto
|
|||
Chairman and
|
|||
Chief Executive Officer
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Everest Reinsurance Holdings, Inc.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
/S/ DOMINIC J. ADDESSO
|
|||
Dominic J. Addesso
|
|||
Executive Vice President and
|
|||
Chief Financial Officer
|
|
1.
|
The Report fully complies with the requirements of section 13(a) of the Securities Exchange Act of 1934, and
|
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/S/ JOSEPH V. TARANTO
|
|||
Joseph V. Taranto
|
|||
Chairman and
|
|||
Chief Executive Officer
|
|||
/S/ DOMINIC J. ADDESSO
|
|||
Dominic J. Addesso
|
|||
Executive Vice President and
|
|||
Chief Financial Officer
|
|||
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