Segment Reporting

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment Reporting

18.  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 foreign 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 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.

U.S. Reinsurance	Years Ended December 31,
(Dollars in thousands)	2013		2012			2011
Gross written premiums	$	1,826,044	$	1,310,683		$	1,346,830
Net written premiums		909,557		659,692			688,524
Premiums earned	$	842,341	$	722,384		$	697,737
Incurred losses and LAE		424,184		582,436			623,113
Commission and brokerage		159,747		168,606			156,026
Other underwriting expenses		47,177		44,776			39,290
Underwriting gain (loss)	$	211,233	$	(73,434	)	$	(120,692	)

International	Years Ended December 31,
(Dollars in thousands)	2013		2012		2011
Gross written premiums	$	1,370,615	$	1,209,523	$	1,242,609
Net written premiums		610,084		550,732		615,064
Premiums earned	$	591,695	$	572,466	$	636,681
Incurred losses and LAE		315,923		261,473		856,131
Commission and brokerage		114,331		124,552		142,273
Other underwriting expenses		33,910		29,294		27,307
Underwriting gain (loss)	$	127,531	$	157,147	$	(389,030	)

Insurance	Years Ended December 31,
(Dollars in thousands)	2013			2012			2011
Gross written premiums	$	1,240,809		$	1,049,184		$	969,079
Net written premiums		597,736			481,177			450,423
Premiums earned	$	572,325		$	479,048		$	459,437
Incurred losses and LAE		532,049			405,835			398,359
Commission and brokerage		19,844			17,541			40,356
Other underwriting expenses		112,412			96,534			87,734
Underwriting gain (loss)	$	(91,980	)	$	(40,862	)	$	(67,012	)

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:

	Years Ended December 31,
(Dollars in thousands)	2013			2012			2011
Underwriting gain (loss)	$	246,784		$	42,851		$	(576,734	)
Net investment income		296,996			306,145			312,933
Net realized capital gains (losses)		723,149			391,702			(41,116	)
Corporate expense		(8,262	)		(8,764	)		(6,073	)
Interest, fee and bond issue cost amortization expense		(45,452	)		(50,746	)		(50,763	)
Other income (expense)		(7,714	)		12,136			(11,745	)
Income (loss) before taxes	$	1,205,501		$	693,324		$	(373,498	)

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:

	Years Ended December 31,
(Dollars in thousands)	2013		2012		2011
Canada	$	169,148	$	148,529	$	185,184

Approximately 19.6%, 20.3% and 26.3% of the Company's gross written premiums in 2013, 2012 and 2011, respectively, were sourced through the Company's largest intermediary.