Segment Reporting

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment Reporting

13.  SEGMENT REPORTING

The U.S. Reinsurance operation writes property and casualty reinsurance and specialty lines of business, including Marine, Aviation, Surety and Accident and Health ("A&H") business, on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies primarily within the U.S.  The International operation writes non-U.S. property and casualty reinsurance through Everest Re's branches in Canada, Singapore and through offices in Brazil, Miami and New Jersey.  The Insurance operation writes property and casualty insurance, including medical stop loss insurance, directly and through general agents, brokers and surplus lines brokers within the U.S. and Canada.

These segments are managed independently, but conform with corporate guidelines with respect to pricing, risk management, control of aggregate catastrophe exposures, capital, investments and support operations.  Management generally monitors and evaluates the financial performance of these operating segments based upon their underwriting results.

Underwriting results include earned premium less losses and loss adjustment expenses ("LAE") incurred, commission and brokerage expenses and other underwriting expenses.  Underwriting results are measured using ratios, in particular loss, commission and brokerage and other underwriting expense ratios, which, respectively, divide incurred losses, commissions and brokerage and other underwriting expenses by premiums earned.

The Company does not maintain separate balance sheet data for its operating segments.  Accordingly, the Company does not review and evaluate the financial results of its operating segments based upon balance sheet data.

	Three Months Ended					Six Months Ended
U.S. Reinsurance	June 30,					June 30,
(Dollars in thousands)	2013		2012			2013		2012
Gross written premiums	$	418,367	$	135,469		$	853,158	$	504,950
Net written premiums		215,839		68,162			433,462		255,387
Premiums earned	$	199,254	$	164,146		$	396,199	$	348,013
Incurred losses and LAE		137,099		103,495			238,293		213,244
Commission and brokerage		38,540		54,651			76,670		99,828
Other underwriting expenses		9,994		10,021			20,528		20,775
Underwriting gain (loss)	$	13,621	$	(4,021	)	$	60,708	$	14,166

	Three Months Ended				Six Months Ended
International	June 30,				June 30,
(Dollars in thousands)	2013		2012		2013		2012
Gross written premiums	$	354,388	$	349,717	$	654,787	$	630,178
Net written premiums		162,557		160,199		296,346		296,528
Premiums earned	$	151,125	$	157,015	$	293,018	$	304,808
Incurred losses and LAE		89,883		97,888		171,966		162,528
Commission and brokerage		31,156		36,978		59,263		68,740
Other underwriting expenses		7,667		6,546		15,597		13,286
Underwriting gain (loss)	$	22,419	$	15,603	$	46,192	$	60,254

	Three Months Ended					Six Months Ended
Insurance	June 30,					June 30,
(Dollars in thousands)	2013		2012			2013			2012
Gross written premiums	$	307,550	$	247,693		$	556,106		$	454,942
Net written premiums		153,214		111,071			277,969			214,896
Premiums earned	$	139,643	$	117,309		$	248,811		$	219,360
Incurred losses and LAE		106,917		92,194			192,281			168,202
Commission and brokerage		5,669		1,736			7,554			12,288
Other underwriting expenses		26,623		24,532			51,681			46,552
Underwriting gain (loss)	$	434	$	(1,153	)	$	(2,705	)	$	(7,682	)

The following table reconciles the underwriting results for the operating segments to income (loss) before taxes as reported in the consolidated statements of operations and comprehensive income (loss) for the periods indicated:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Dollars in thousands)	2013			2012			2013			2012
Underwriting gain (loss)	$	36,474		$	10,429		$	104,195		$	66,738
Net investment income		81,736			74,206			158,605			155,448
Net realized capital gains (losses)		15,526			82,589			325,332			258,730
Corporate expense		(2,065	)		(1,732	)		(3,837	)		(3,298	)
Interest, fee and bond issue cost amortization expense		(17,928	)		(12,683	)		(30,544	)		(25,379	)
Other income (expense)		9,744			25,428			83			19,174
Income (loss) before taxes	$	123,487		$	178,237		$	553,834		$	471,413

The Company produces business in the U.S. and internationally.  The net income deriving from assets residing in the individual foreign countries in which the Company writes business are not identifiable in the Company's financial records.  Based on gross written premium, the table below presents the largest country, other than the U.S., in which the Company writes business, for the periods indicated:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2013		2012		2013		2012
Canada	$	35,436	$	27,835	$	75,582	$	75,275

No other country represented more than 5% of the Company's revenues.