10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED: June 30, 2014 Commission file number: 1-14527

EVEREST REINSURANCE HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Delaware	22-3263609
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

477 Martinsville Road

Post Office Box 830

Liberty Corner, New Jersey 07938-0830

(908) 604-3000

(Address, including zip code, and telephone number, including area code,

of registrant’s principal executive office)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

YES X NO

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

YES X NO

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer		Accelerated filer
Non-accelerated filer	X	Smaller reporting company
(Do not check if smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES NO X

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

	Number of Shares Outstanding
Class	At August 1, 2014
Common Shares, $0.01 par value	1,000

The Registrant meets the conditions set forth in General Instruction H (1)(a) and (b) of Form 10-Q and is therefore filing this form with the reduced disclosure format permitted by General Instruction H of Form 10-Q.

EVEREST REINSURANCE HOLDINGS, INC.

Table of Contents

Form 10-Q

Page

PART I

FINANCIAL INFORMATION

Item 1.	Financial Statements
	Consolidated Balance Sheets at June 30, 2014 (unaudited) and
		December 31, 2013	1
	Consolidated Statements of Operations and Comprehensive Income (Loss) for the
		three and six months ended June 30, 2014 and 2013 (unaudited)	2
	Consolidated Statements of Changes in Stockholder’s Equity for the three and
		six months ended June 30, 2014 and 2013 (unaudited)	3
	Consolidated Statements of Cash Flows for the three and six months ended
		June 30, 2014 and 2013 (unaudited)	4
	Notes to Consolidated Interim Financial Statements (unaudited)		5
Item 2.	Management’s Discussion and Analysis of Financial Condition and
		Results of Operation	26
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		41
Item 4.	Controls and Procedures		41

PART II

OTHER INFORMATION

Item 1.	Legal Proceedings	41
Item 1A.	Risk Factors	42
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	42
Item 3.	Defaults Upon Senior Securities	42
Item 4.	Mine Safety Disclosures	42
Item 5.	Other Information	42
Item 6.	Exhibits	42

Part I

ITEM  1.  FINANCIAL STATEMENTS

EVEREST REINSURANCE HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

	June 30,		December 31,
(Dollars in thousands, except par value per share)	2014		2013
	(unaudited)
ASSETS:
Fixed maturities - available for sale, at market value	$	5,900,397	$	5,201,921
(amortized cost: 2014, $5,750,381; 2013, $5,116,600)
Fixed maturities - available for sale, at fair value		-		19,388
Equity securities - available for sale, at market value (cost: 2014, $15; 2013, $15)		15		13
Equity securities - available for sale, at fair value		1,247,792		1,298,940
Short-term investments		673,408		757,162
Other invested assets (cost: 2014, $392,951; 2013, $385,776)		392,951		385,776
Other invested assets, at fair value		1,559,958		1,515,052
Cash		227,033		316,807
Total investments and cash		10,001,554		9,495,059
Accrued investment income		51,380		50,306
Premiums receivable		1,256,740		1,173,780
Reinsurance receivables - unaffiliated		673,999		530,158
Reinsurance receivables - affiliated		3,284,249		3,062,884
Funds held by reinsureds		179,551		175,526
Deferred acquisition costs		104,516		112,024
Prepaid reinsurance premiums		773,401		673,753
Other assets		300,793		247,505
TOTAL ASSETS	$	16,626,183	$	15,520,995
LIABILITIES:
Reserve for losses and loss adjustment expenses	$	7,657,561	$	7,653,229
Unearned premium reserve		1,418,445		1,317,147
Funds held under reinsurance treaties		96,754		92,514
Losses in the course of payment		502,639		350,820
Commission reserves		37,219		47,226
Other net payable to reinsurers		1,109,597		1,026,292
4.868% Senior notes due 6/1/2044		400,000		-
5.4% Senior notes due 10/15/2014		249,984		249,958
6.6% Long term notes due 5/1/2067		238,362		238,361
Accrued interest on debt and borrowings		6,133		4,781
Income taxes		83,675		23,949
Unsettled securities payable		72,534		53,772
Other liabilities		269,196		272,468
Total liabilities		12,142,099		11,330,517
Commitments and Contingencies (Note 6)
STOCKHOLDER'S EQUITY:
Common stock, par value: $0.01; 3,000 shares authorized;
1,000 shares issued and outstanding (2014 and 2013)		-		-
Additional paid-in capital		357,537		351,051
Accumulated other comprehensive income (loss), net of deferred income tax expense
(benefit) of $70,069 at 2014 and $47,195 at 2013		130,128		87,648
Retained earnings		3,996,419		3,751,779
Total stockholder's equity		4,484,084		4,190,478
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$	16,626,183	$	15,520,995
The accompanying notes are an integral part of the consolidated financial statements.

1

EVEREST REINSURANCE HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Dollars in thousands)	2014			2013			2014			2013
	(unaudited)						(unaudited)
REVENUES:
Premiums earned	$	520,736		$	490,022		$	991,181		$	938,028
Net investment income		68,636			81,736			132,423			158,605
Net realized capital gains (losses):
Other-than-temporary impairments on fixed maturity securities		(199	)		-			(199	)		-
Other-than-temporary impairments on fixed maturity securities
transferred to other comprehensive income (loss)		-			-			-			-
Other net realized capital gains (losses)		125,313			15,526			121,263			325,332
Total net realized capital gains (losses)		125,114			15,526			121,064			325,332
Other income (expense)		(8,782	)		9,744			(11,837	)		83
Total revenues		705,704			597,028			1,232,831			1,422,048
CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses		321,517			333,899			599,563			602,540
Commission, brokerage, taxes and fees		85,322			75,365			161,416			143,487
Other underwriting expenses		47,158			44,284			86,409			87,806
Corporate expenses		(524	)		2,065			778			3,837
Interest, fee and bond issue cost amortization expense		8,811			17,928			16,247			30,544
Total claims and expenses		462,284			473,541			864,413			868,214
INCOME (LOSS) BEFORE TAXES		243,420			123,487			368,418			553,834
Income tax expense (benefit)		85,246			38,225			123,778			182,921
NET INCOME (LOSS)	$	158,174		$	85,262		$	244,640		$	370,913
Other comprehensive income (loss), net of tax :
Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period		19,102			(78,581	)		39,899			(84,187	)
Less: reclassification adjustment for realized losses (gains) included in net income (loss)		857			(158	)		2,155			(1,516	)
Total URA(D) on securities arising during the period		19,959			(78,739	)		42,054			(85,703	)
Foreign currency translation adjustments		6,721			371			(1,115	)		(7,225	)
Benefit plan actuarial net gain (loss) for the period		-			-			-			-
Reclassification adjustment for amortization of net (gain) loss included in net income (loss)		770			1,345			1,541			2,691
Total benefit plan net gain (loss) for the period		770			1,345			1,541			2,691
Total other comprehensive income (loss), net of tax		27,450			(77,023	)		42,480			(90,237	)
COMPREHENSIVE INCOME (LOSS)	$	185,624		$	8,239		$	287,120		$	280,676
The accompanying notes are an integral part of the consolidated financial statements.

2

EVEREST REINSURANCE HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF

CHANGES IN STOCKHOLDER’S EQUITY

	Three Months Ended					Six Months Ended
	June 30,					June 30,
(Dollars in thousands, except share amounts)	2014		2013			2014		2013
	(unaudited)					(unaudited)
COMMON STOCK (shares outstanding):
Balance, beginning of period		1,000		1,000			1,000		1,000
Balance, end of period		1,000		1,000			1,000		1,000
ADDITIONAL PAID-IN CAPITAL:
Balance, beginning of period	$	354,445	$	343,381		$	351,051	$	340,223
Share-based compensation plans		3,092		2,898			6,486		6,056
Balance, end of period		357,537		346,279			357,537		346,279
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS),
NET OF DEFERRED INCOME TAXES:
Balance, beginning of period		102,678		171,653			87,648		184,867
Net increase (decrease) during the period		27,450		(77,023	)		42,480		(90,237	)
Balance, end of period		130,128		94,630			130,128		94,630
RETAINED EARNINGS:
Balance, beginning of period		3,838,245		3,239,167			3,751,779		2,953,516
Net income (loss)		158,174		85,262			244,640		370,913
Balance, end of period		3,996,419		3,324,429			3,996,419		3,324,429
TOTAL STOCKHOLDER'S EQUITY, END OF PERIOD	$	4,484,084	$	3,765,338		$	4,484,084	$	3,765,338
The accompanying notes are an integral part of the consolidated financial statements.

3

EVEREST REINSURANCE HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Dollars in thousands)	2014			2013			2014			2013
	(unaudited)						(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	158,174		$	85,262		$	244,640		$	370,913
Adjustments to reconcile net income to net cash provided by operating activities:
Decrease (increase) in premiums receivable		(95,148	)		(145,988	)		(82,537	)		(197,543	)
Decrease (increase) in funds held by reinsureds, net		(2,476	)		(6,364	)		401			(12,486	)
Decrease (increase) in reinsurance receivables		(89,030	)		(64,010	)		(368,394	)		(86,152	)
Decrease (increase) in income taxes		12,432			(8,697	)		36,879			123,402
Decrease (increase) in prepaid reinsurance premiums		(53,035	)		(37,771	)		(100,075	)		(54,149	)
Increase (decrease) in reserve for losses and loss adjustment expenses		66,292			(77,864	)		7,882			(254,292	)
Increase (decrease) in unearned premiums		25,138			78,867			101,264			122,814
Increase (decrease) in other net payable to reinsurers		(47,321	)		121,516			83,206			116,897
Increase (decrease) in losses in course of payment		49,634			73,102			151,503			235,534
Change in equity adjustments in limited partnerships		(1,982	)		(13,602	)		1,161			(24,822	)
Distribution of limited partnership income		3,333			5,933			9,157			16,185
Change in other assets and liabilities, net		(35,283	)		(24,739	)		(51,901	)		(11,751	)
Non-cash compensation expense		1,969			1,800			3,698			3,973
Amortization of bond premium (accrual of bond discount)		5,577			7,134			11,581			13,697
Amortization of underwriting discount on senior notes		14			14			28			27
Net realized capital (gains) losses		(125,114	)		(15,526	)		(121,064	)		(325,332	)
Net cash provided by (used in) operating activities		(126,826	)		(20,933	)		(72,571	)		36,915
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from fixed maturities matured/called - available for sale, at market value		312,199			329,143			519,733			627,384
Proceeds from fixed maturities matured/called - available for sale, at fair value		-			4,213			875			7,213
Proceeds from fixed maturities sold - available for sale, at market value		178,281			173,690			327,859			340,624
Proceeds from fixed maturities sold - available for sale, at fair value		-			13,678			20,763			17,342
Proceeds from equity securities sold - available for sale, at fair value		116,827			251,018			292,943			354,846
Distributions from other invested assets		5,443			21,378			15,271			43,603
Cost of fixed maturities acquired - available for sale, at market value		(810,168	)		(414,379	)		(1,499,373	)		(1,000,902	)
Cost of fixed maturities acquired - available for sale, at fair value		-			(1,411	)		(1,309	)		(2,706	)
Cost of equity securities acquired - available for sale, at fair value		(86,025	)		(113,147	)		(163,452	)		(233,674	)
Cost of other invested assets acquired		(27,803	)		(3,847	)		(32,764	)		(8,508	)
Net change in short-term investments		(29,636	)		13,055			83,935			96,677
Net change in unsettled securities transactions		15,765			(14,825	)		6,953			(32,383	)
Net cash provided by (used in) investing activities		(325,117	)		258,566			(428,566	)		209,516
CASH FLOWS FROM FINANCING ACTIVITIES:
Tax benefit from share-based compensation		1,123			1,098			2,788			2,083
Revolving credit borrowings		-			40,000			-			40,000
Net cost of junior subordinated debt securities redemption		-			(329,897	)		-			(329,897	)
Net proceeds from issuance of senior notes		400,000			-			400,000			-
Net cash provided by (used in) financing activities		401,123			(288,799	)		402,788			(287,814	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH		4,588			(1,157	)		8,575			(14,705	)
Net increase (decrease) in cash		(46,232	)		(52,323	)		(89,774	)		(56,088	)
Cash, beginning of period		273,265			343,955			316,807			347,720
Cash, end of period	$	227,033		$	291,632		$	227,033		$	291,632
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid (recovered)	$	71,932		$	42,557		$	84,406		$	53,395
Interest paid		14,677			17,846			14,719			22,982
The accompanying notes are an integral part of the consolidated financial statements.

4

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

For the Three and Six Months Ended June 30, 2014 and 2013

1.  GENERAL

As used in this document, “Holdings” means Everest Reinsurance Holdings, Inc., a Delaware company and direct subsidiary of Everest Underwriting Group (Ireland) Limited (“Holdings Ireland”); “Group” means Everest Re Group, Ltd. (Holdings Ireland’s parent); “Bermuda Re” means Everest Reinsurance (Bermuda), Ltd., a subsidiary of Group; “Everest Re” means Everest Reinsurance Company and its subsidiaries, a subsidiary of Holdings (unless the context otherwise requires); “Mt. Logan Re” means Mt. Logan Re Ltd., a subsidiary of Group; and the “Company” means Holdings and its subsidiaries.

2. BASIS OF PRESENTATION

The unaudited consolidated financial statements of the Company for the three and six months ended June 30, 2014 and 2013 include all adjustments, consisting of normal recurring accruals, which, in the opinion of management, are necessary for a fair statement of the results on an interim basis.  Certain financial information, which is normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), has been omitted since it is not required for interim reporting purposes. The December 31, 2013 consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP.  The results for the three and six months ended June 30, 2014 and 2013 are not necessarily indicative of the results for a full year.  These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the years ended December 31, 2013, 2012 and 2011 included in the Company’s most recent Form 10-K filing.

All intercompany accounts and transactions have been eliminated.

Certain reclassifications and format changes have been made to prior years’ amounts to conform to the 2014 presentation.  One reclassification relates to a correction in the manner in which the Company reports distributions received from limited partnership investments in the consolidated Statements of Cash Flows.  Prior to the fourth quarter of 2013, the Company incorrectly reflected all distributions as cash flows from investing activities in its Consolidated Statements of Cash Flows.  Starting with the fourth quarter of 2013, cash distributions from the limited partnerships that represent net investment income are reflected as cash flows from operating activities and distributions that represent the return of capital contributions are reflected as cash flows from investing activities.  For the three and six months ended June 30, 2013, $5,933 thousand and $16,185 thousand, respectively, have been reclassified from “Distributions from other invested assets” included in cash flows  from investing activities to “Distribution of limited partnership income” included in cash flows from operations.  The Company has determined that this error is not material to the financial statements of any prior period.

Application of Recently Issued Accounting Standard Changes

Presentation of Comprehensive Income. In June 2011, FASB issued amendments to existing guidance to provide two alternatives for the presentation of comprehensive income. Components of net income and comprehensive income can either be presented within a single, continuous financial statement or be presented in two separate but consecutive financial statements.  The Company has chosen to present the components of net income and comprehensive income in a single, continuous financial statement.  The guidance is effective for reporting periods beginning after December 15, 2011.  The Company implemented this guidance as of January 1, 2012.  In February, 2013, the FASB issued an additional amendment for the presentation of amounts reclassified out of accumulated other comprehensive income by component.  The Company implemented the proposed guidance as of January 1, 2013.

5

Treatment of Insurance Contract Acquisition Costs. In October 2010, the FASB issued authoritative guidance for the accounting for costs associated with acquiring or renewing insurance contracts.  The guidance identifies the incremental direct costs of contract acquisition and costs directly related to acquisition activities that should be capitalized.  This guidance is effective for reporting periods beginning after December 15, 2011.  The Company implemented this guidance as of January 1, 2012 and determined that $7,215 thousand of previously deferrable acquisition costs would be expensed, including $5,818 thousand and $1,397 thousand expensed in the years ended December 31, 2012 and 2013, respectively.  No additional expense will be incurred related to this guidance implementation in future periods.

3.  INVESTMENTS

The amortized cost, market value and gross unrealized appreciation and depreciation of available for sale, fixed maturity and equity security investments, carried at market value, are as follows for the periods indicated:

	At June 30, 2014
	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	$	393,018	$	728	$	(635	)	$	393,111
Obligations of U.S. states and political subdivisions		881,697		44,770		(2,050	)		924,417
Corporate securities		2,042,111		53,019		(7,381	)		2,087,749
Asset-backed securities		65,443		1,410		(7	)		66,846
Mortgage-backed securities
Commercial		31,942		3,282		-			35,224
Agency residential		658,989		8,375		(6,393	)		660,971
Non-agency residential		636		186		-			822
Foreign government securities		585,776		30,390		(3,938	)		612,228
Foreign corporate securities		1,090,769		33,971		(5,711	)		1,119,029
Total fixed maturity securities	$	5,750,381	$	176,131	$	(26,115	)	$	5,900,397
Equity securities	$	15	$	-	$	-		$	15

	At December 31, 2013
	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	$	72,211	$	420	$	(946	)	$	71,685
Obligations of U.S. states and political subdivisions		970,735		40,815		(9,022	)		1,002,528
Corporate securities		1,669,553		45,355		(12,493	)		1,702,415
Asset-backed securities		38,544		1,065		-			39,609
Mortgage-backed securities
Commercial		34,855		3,811		-			38,666
Agency residential		709,589		6,331		(18,521	)		697,399
Non-agency residential		859		113		(33	)		939
Foreign government securities		654,029		28,739		(7,941	)		674,827
Foreign corporate securities		966,225		23,227		(15,599	)		973,853
Total fixed maturity securities	$	5,116,600	$	149,876	$	(64,555	)	$	5,201,921
Equity securities	$	15	$	-	$	(2	)	$	13

The $612,228 thousand of foreign government securities at June 30, 2014 included $77,363 thousand of European sovereign securities.  Approximately 51.5%, 16.6%, 12.4%, 8.4% and 5.4% of European Sovereign Securities represented securities held in the governments of France, the United Kingdom, Sweden, the Netherlands and Germany, respectively.  No other countries represented more than 5% of the European sovereign securities.  The Company held no sovereign securities of Portugal, Italy, Ireland, Greece or Spain at June 30, 2014.

6

In accordance with FASB guidance, the Company reclassified the non-credit portion of other-than-temporary impairments from retained earnings into accumulated other comprehensive income (loss), on April 1, 2009.  As of June 30, 2014, all of the previously reclassified securities have either matured or have been sold.

The amortized cost and market value of fixed maturity securities are shown in the following table by contractual maturity. Mortgage-backed securities are generally more likely to be prepaid than other fixed maturity securities. As the stated maturity of such securities may not be indicative of actual maturities, the totals for mortgage-backed and asset-backed securities are shown separately.

	At June 30, 2014				At December 31, 2013
	Amortized		Market		Amortized		Market
(Dollars in thousands)	Cost		Value		Cost		Value
Fixed maturity securities – available for sale
Due in one year or less	$	483,623	$	483,931	$	462,133	$	463,674
Due after one year through five years		2,760,988		2,813,468		2,251,169		2,300,475
Due after five years through ten years		1,098,869		1,126,805		988,896		1,000,053
Due after ten years		649,891		712,330		630,555		661,106
Asset-backed securities		65,443		66,846		38,544		39,609
Mortgage-backed securities
Commercial		31,942		35,224		34,855		38,666
Agency residential		658,989		660,971		709,589		697,399
Non-agency residential		636		822		859		939
Total fixed maturity securities	$	5,750,381	$	5,900,397	$	5,116,600	$	5,201,921

The changes in net unrealized appreciation (depreciation) for the Company’s investments are derived from the following sources for the periods as indicated:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Dollars in thousands)	2014			2013			2014			2013
Increase (decrease) during the period between the market value and cost
of investments carried at market value, and deferred taxes thereon:
Fixed maturity securities	$	30,702		$	(120,835	)	$	64,695		$	(131,453	)
Fixed maturity securities, other-than-temporary impairment		-			(302	)		-			(399	)
Equity securities		2			-			2			1
Change in unrealized  appreciation (depreciation), pre-tax		30,704			(121,137	)		64,697			(131,851	)
Deferred tax benefit (expense)		(10,745	)		42,292			(22,643	)		46,008
Deferred tax benefit (expense), other-than-temporary impairment		-			106			-			140
Change in unrealized appreciation (depreciation),
net of deferred taxes, included in stockholder's equity	$	19,959		$	(78,739	)	$	42,054		$	(85,703	)

The Company frequently reviews all of its fixed maturity, available for sale securities for declines in market value and focuses its attention on securities whose fair value has fallen below 80% of their amortized cost at the time of review.  The Company then assesses whether the decline in value is temporary or other-than-temporary.  In making its assessment, the Company evaluates the current market and interest rate environment as well as specific issuer information.  Generally, a change in a security’s value caused by a change in the market, interest rate or foreign exchange environment does not constitute an other-than-temporary impairment, but rather a temporary decline in market value.  Temporary declines in market value are recorded as unrealized losses in accumulated other comprehensive income (loss).  If the Company determines that the decline is other-than-temporary and the Company does not have the intent to sell the security; and it is more likely than not that the Company will not have to sell the security before recovery of its cost basis, the carrying value of the investment is written down to fair value.  The fair value adjustment that is credit or foreign exchange related is recorded in net realized capital gains (losses) in the Company’s consolidated statements of operations and comprehensive income (loss). The fair value adjustment that is non-credit related is recorded as a component of other comprehensive income (loss), net of tax, and is included in accumulated other comprehensive income (loss) in the Company’s consolidated balance sheets.  The Company’s assessments are based on the issuers current and expected future financial position, timeliness with respect to interest and/or principal payments, speed of repayments and any applicable credit

7

enhancements or breakeven constant default rates on mortgage-backed and asset-backed securities, as well as relevant information provided by rating agencies, investment advisors and analysts.

Retrospective adjustments are employed to recalculate the values of asset-backed securities. All of the Company’s asset-backed and mortgage-backed securities have a pass-through structure. Each acquisition lot is reviewed to recalculate the effective yield. The recalculated effective yield is used to derive a book value as if the new yield were applied at the time of acquisition. Outstanding principal factors from the time of acquisition to the adjustment date are used to calculate the prepayment history for all applicable securities. Conditional prepayment rates, computed with life to date factor histories and weighted average maturities, are used in the calculation of projected prepayments for pass-through security types.

The tables below display the aggregate market value and gross unrealized depreciation of fixed maturity and equity securities, by security type and contractual maturity, in each case subdivided according to length of time that individual securities had been in a continuous unrealized loss position for the periods indicated:

	Duration of Unrealized Loss at June 30, 2014 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	$	105,986	$	(45	)	$	24,597	$	(590	)	$	130,583	$	(635	)
Obligations of U.S. states and political subdivisions		-		-			92,739		(2,050	)		92,739		(2,050	)
Corporate securities		345,912		(2,814	)		190,310		(4,567	)		536,222		(7,381	)
Asset-backed securities		12,591		(7	)		-		-			12,591		(7	)
Mortgage-backed securities
Commercial		-		-			-		-			-		-
Agency residential		56,079		(235	)		286,429		(6,158	)		342,508		(6,393	)
Non-agency residential		-		-			-		-			-		-
Foreign government securities		32,337		(711	)		65,825		(3,227	)		98,162		(3,938	)
Foreign corporate securities		68,342		(1,210	)		138,194		(4,501	)		206,536		(5,711	)
Total fixed maturity securities	$	621,247	$	(5,022	)	$	798,094	$	(21,093	)	$	1,419,341	$	(26,115	)
Equity securities		15		-			-		-			15		-
Total	$	621,262	$	(5,022	)	$	798,094	$	(21,093	)	$	1,419,356	$	(26,115	)

	Duration of Unrealized Loss at June 30, 2014 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	$	31,259	$	(1,340	)	$	37,625	$	(4,040	)	$	68,884	$	(5,380	)
Due in one year through five years		331,857		(1,950	)		265,430		(6,480	)		597,287		(8,430	)
Due in five years through ten years		185,929		(1,383	)		107,068		(1,615	)		292,997		(2,998	)
Due after ten years		3,532		(107	)		101,542		(2,800	)		105,074		(2,907	)
Asset-backed securities		12,591		(7	)		-		-			12,591		(7	)
Mortgage-backed securities		56,079		(235	)		286,429		(6,158	)		342,508		(6,393	)
Total fixed maturity securities	$	621,247	$	(5,022	)	$	798,094	$	(21,093	)	$	1,419,341	$	(26,115	)

The aggregate market value and gross unrealized losses related to investments in an unrealized loss position at June 30, 2014 were $1,419,356 thousand and $26,115 thousand, respectively.  The market value of securities for the single issuer whose securities comprised the largest unrealized loss position at June 30, 2014, did not exceed 0.4% of the overall market value of the Company’s fixed maturity securities.  In addition, as indicated on the above table, there was no significant concentration of unrealized losses in any one market sector.  The $5,022 thousand of unrealized losses related to fixed maturity securities that have been in an unrealized loss position for less than one year were primarily comprised of domestic and foreign corporate securities.  Of these unrealized losses, $2,508 thousand were related to securities that were rated investment grade by at least one nationally recognized statistical rating organization.  The

8

$21,093 thousand of unrealized losses related to fixed maturity securities in an unrealized loss position for more than one year related primarily to agency residential mortgage-backed securities, foreign and domestic corporate securities, foreign government securities as well as state and municipal securities.  Of these unrealized losses, $19,842 thousand were related to securities that were rated investment grade by at least one nationally recognized statistical rating organization.  The gross unrealized depreciation for mortgage-backed securities included less than $1 thousand related to sub-prime and alt-A loans.  In all instances, there were no projected cash flow shortfalls to recover the full book value of the investments and the related interest obligations.  The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments.

The Company, given the size of its investment portfolio and capital position, does not have the intent to sell these securities; and it is more likely than not that the Company will not have to sell the security before recovery of its cost basis.  In addition, all securities currently in an unrealized loss position are current with respect to principal and interest payments.

The tables below display the aggregate market value and gross unrealized depreciation of fixed maturity and equity securities, by security type and contractual maturity, in each case subdivided according to length of time that individual securities had been in a continuous unrealized loss position for the periods indicated:

	Duration of Unrealized Loss at December 31, 2013 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	$	39,274	$	(302	)	$	8,751	$	(644	)	$	48,025	$	(946	)
Obligations of U.S. states and political subdivisions		92,760		(4,852	)		39,689		(4,170	)		132,449		(9,022	)
Corporate securities		388,721		(8,981	)		56,156		(3,512	)		444,877		(12,493	)
Asset-backed securities		-		-			-		-			-		-
Mortgage-backed securities
Commercial		-		-			-		-			-		-
Agency residential		381,149		(14,084	)		131,504		(4,437	)		512,653		(18,521	)
Non-agency residential		-		-			202		(33	)		202		(33	)
Foreign government securities		100,984		(5,255	)		29,174		(2,686	)		130,158		(7,941	)
Foreign corporate securities		321,933		(11,394	)		66,715		(4,205	)		388,648		(15,599	)
Total fixed maturity securities	$	1,324,821	$	(44,868	)	$	332,191	$	(19,687	)	$	1,657,012	$	(64,555	)
Equity securities		13		(2	)		-		-			13		(2	)
Total	$	1,324,834	$	(44,870	)	$	332,191	$	(19,687	)	$	1,657,025	$	(64,557	)

	Duration of Unrealized Loss at December 31, 2013 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	$	17,315	$	(1,273	)	$	31,679	$	(4,132	)	$	48,994	$	(5,405	)
Due in one year through five years		425,627		(8,982	)		111,150		(5,647	)		536,777		(14,629	)
Due in five years through ten years		312,341		(10,408	)		14,865		(663	)		327,206		(11,071	)
Due after ten years		188,389		(10,121	)		42,791		(4,775	)		231,180		(14,896	)
Asset-backed securities		-		-			-		-			-		-
Mortgage-backed securities		381,149		(14,084	)		131,706		(4,470	)		512,855		(18,554	)
Total fixed maturity securities	$	1,324,821	$	(44,868	)	$	332,191	$	(19,687	)	$	1,657,012	$	(64,555	)

9

The aggregate market value and gross unrealized losses related to investments in an unrealized loss position at December 31, 2013 were $1,657,025 thousand and $64,557 thousand, respectively.  The market value of securities for the single issuer whose securities comprised the largest unrealized loss position at December 31, 2013, did not exceed 0.9% of the overall market value of the Company’s fixed maturity securities.  In addition, as indicated on the above table, there was no significant concentration of unrealized losses in any one market sector.  The $44,868 thousand of unrealized losses related to fixed maturity securities that have been in an unrealized loss position for less than one year were primarily comprised of domestic and foreign corporate securities, foreign government securities, agency residential mortgage-backed securities as well as state and municipal securities.  Of these unrealized losses, $38,527 thousand were related to securities that were rated investment grade by at least one nationally recognized statistical rating organization.  The $19,687 thousand of unrealized losses related to fixed maturity securities in an unrealized loss position for more than one year related primarily to domestic and foreign corporate securities, foreign government securities, agency residential mortgage-backed securities as well as state and municipal securities.  Of these unrealized losses, $18,867 thousand were related to securities that were rated investment grade by at least one nationally recognized statistical rating organization.  The gross unrealized depreciation for mortgage-backed securities included $33 thousand related to sub-prime and alt-A loans.  In all instances, there were no projected cash flow shortfalls to recover the full book value of the investments and the related interest obligations.  The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments.

Other invested assets, at fair value, is comprised of common shares of the Company’s ultimate parent, Group.  At June 30, 2014, the Company held 9,719,971 shares of Group representing 17.5% of the total outstanding shares.

The components of net investment income are presented in the table below for the periods indicated:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Dollars in thousands)	2014			2013			2014			2013
Fixed maturities	$	53,921		$	53,366		$	105,000		$	107,265
Equity securities		9,180			11,114			18,117			18,845
Short-term investments and cash		459			137			645			403
Other invested assets
Limited partnerships		2,695			14,192			(392	)		25,540
Dividends from Parent's shares		7,290			4,665			14,580			9,331
Other		330			1,935			2,351			4,255
Gross investment income before adjustments		73,875			85,409			140,301			165,639
Funds held interest income (expense)		1,183			1,018			3,292			3,436
Gross investment income		75,058			86,427			143,593			169,075
Investment expenses		(6,422	)		(4,691	)		(11,170	)		(10,470	)
Net investment income	$	68,636		$	81,736		$	132,423		$	158,605

The Company records results from limited partnership investments on the equity method of accounting with changes in value reported through net investment income. Due to the timing of receiving financial information from these partnerships, the results are generally reported on a one month or quarter lag.  If the Company determines there has been a significant decline in value of a limited partnership during this lag period, a loss will be recorded in the period in which the Company identifies the decline.

The Company had contractual commitments to invest up to an additional $168,244 thousand in limited partnerships at June 30, 2014.  These commitments will be funded when called in accordance with the partnership agreements, which have investment periods that expire, unless extended, through 2017.

10

The components of net realized capital gains (losses) are presented in the table below for the periods indicated:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Dollars in thousands)	2014			2013			2014			2013
Fixed maturity securities, market value:
Other-than-temporary impairments	$	(199	)	$	-		$	(199	)	$	-
Gains (losses) from sales		(928	)		243			(2,925	)		2,332
Fixed maturity securities, fair value:
Gain (losses) from sales		-			148			940			90
Gains (losses) from fair value adjustments		-			(1,666	)		-			(1,582	)
Equity securities, fair value:
Gains (losses) from sales		1,721			15,888			385			23,971
Gains (losses) from fair value adjustments		52,205			16,465			77,958			122,534
Other invested assets, fair value:
Gains (losses) from fair value adjustments		72,316			(15,552	)		44,906			177,973
Short-term investment gains (losses)		(1	)		-			(1	)		14
Total net realized capital gains (losses)	$	125,114		$	15,526		$	121,064		$	325,332

The Company recorded as net realized capital gains (losses) in the consolidated statements of operations and comprehensive income (loss) both fair value re-measurements and write-downs in the value of securities deemed to be impaired on an other-than-temporary basis as displayed in the table above.  The Company had no other-than-temporary impaired securities where the impairment had both a credit and non-credit component.

The proceeds and split between gross gains and losses, from sales of fixed maturity and equity securities, are presented in the table below for the periods indicated:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Dollars in thousands)	2014			2013			2014			2013
Proceeds from sales of fixed maturity securities	$	178,281		$	187,368		$	348,622		$	357,966
Gross gains from sales		3,815			4,866			6,290			8,677
Gross losses from sales		(4,743	)		(4,475	)		(8,275	)		(6,255	)
Proceeds from sales of equity securities	$	116,827		$	251,018		$	292,943		$	354,846
Gross gains from sales		3,734			20,536			10,322			29,405
Gross losses from sales		(2,013	)		(4,648	)		(9,937	)		(5,434	)

4.  FAIR VALUE

The Company’s fixed maturity and equity securities are primarily managed by third party investment asset managers.  The investment asset managers obtain prices from nationally recognized pricing services.   These services seek to utilize market data and observations in their evaluation process.  They use pricing applications that vary by asset class and incorporate available market information and when fixed maturity securities do not trade on a daily basis the services will apply available information through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing.  In addition, they use model processes, such as the Option Adjusted Spread model to develop prepayment and interest rate scenarios for securities that have prepayment features.

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In limited instances where prices are not provided by pricing services or in rare instances when a manager may not agree with the pricing service, price quotes on a non-binding basis are obtained from investment brokers.  The investment asset managers do not make any changes to prices received from either the pricing services or the investment brokers.  In addition, the investment asset managers have procedures in place to review the reasonableness of the prices from the service providers and may request verification of the prices.  In addition, the Company continually performs analytical reviews of price changes and tests the prices on a random basis to an independent pricing source.   No material variances were noted during these price validation procedures.  In limited situations, where financial markets are inactive or illiquid, the Company may use its own assumptions about future cash flows and risk-adjusted discount rates to determine fair value.  The Company made no such adjustments at June 30, 2014 and December 31, 2013.

The Company internally manages a small public equity portfolio which had a fair value at June 30, 2014 and December 31, 2013, of $91,802 thousand and $88,338 thousand, respectively, and all prices were obtained from publically published sources.

Equity securities in U.S. denominated currency are categorized as Level 1, Quoted Prices in Active Markets for Identical Assets, since the securities are actively traded on an exchange and prices are based on quoted prices from the exchange.  Equity securities traded on foreign exchanges are categorized as Level 2 due to potential foreign exchange adjustments to fair or market value.

Fixed maturity securities are generally categorized as Level 2, Significant Other Observable Inputs, since a particular security may not have traded but the pricing services are able to use valuation models with observable market inputs such as interest rate yield curves and prices for similar fixed maturity securities in terms of issuer, maturity and seniority. Valuations that are derived from techniques in which one or more of the significant inputs are unobservable (including assumptions about risk) are categorized as Level 3, Significant Unobservable Inputs.  These securities include broker priced securities.

As of June 30, 2014 and December 31, 2013, all Level 3 fixed maturity securities, were priced using single non-binding broker quotes since prices for these securities were not provided by normal pricing service companies.  The single broker quotes are provided by market makers or broker-dealers who are recognized as market participants in the markets in which they are providing the quotes.  The prices received from brokers are reviewed for reasonableness by the third party asset managers and the Company.

Other invested assets, at fair value, are categorized as Level 1, Quoted Prices in Active Markets for Identical Assets, since the securities are shares of the Company’s parent, which are actively traded on an exchange and the price is based on a quoted price.

12

The following table presents the fair value measurement levels for all assets, which the Company has recorded at fair value (fair and market value) as of the period indicated:

			Fair Value Measurement Using:
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
(Dollars in thousands)	June 30, 2014		(Level 1)		(Level 2)		(Level 3)
Assets:
Fixed maturities, market value
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	393,111	$	-	$	393,111	$	-
Obligations of U.S. States and political subdivisions		924,417		-		924,417		-
Corporate securities		2,087,749		-		2,087,749		-
Asset-backed securities		66,846		-		64,318		2,528
Mortgage-backed securities
Commercial		35,224		-		35,224		-
Agency residential		660,971		-		660,971		-
Non-agency residential		822		-		818		4
Foreign government securities		612,228		-		612,228		-
Foreign corporate securities		1,119,029		-		1,119,029		-
Total fixed maturities, market value		5,900,397		-		5,897,865		2,532
Fixed maturities, fair value		-		-		-		-
Equity securities, market value		15		15		-		-
Equity securities, fair value		1,247,792		1,125,956		121,836		-
Other invested assets, fair value		1,559,958		1,559,958		-		-

There were no transfers between Level 1 and Level 2 for the six months ended June 30, 2014.

The following table presents the fair value measurement levels for all assets, which the Company has recorded at fair value (fair and market value) as of the period indicated:

			Fair Value Measurement Using:
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
(Dollars in thousands)	December 31, 2013		(Level 1)		(Level 2)		(Level 3)
Assets:
Fixed maturities, market value
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	71,685	$	-	$	71,685	$	-
Obligations of U.S. States and political subdivisions		1,002,528		-		1,002,528		-
Corporate securities		1,702,415		-		1,702,415		-
Asset-backed securities		39,609		-		36,076		3,533
Mortgage-backed securities
Commercial		38,666		-		38,666		-
Agency residential		697,399		-		697,399		-
Non-agency residential		939		-		935		4
Foreign government securities		674,827		-		674,827		-
Foreign corporate securities		973,853		-		973,372		481
Total fixed maturities, market value		5,201,921		-		5,197,903		4,018
Fixed maturities, fair value		19,388		-		19,388		-
Equity securities, market value		13		13		-		-
Equity securities, fair value		1,298,940		1,179,139		119,801		-
Other invested assets, fair value		1,515,052		1,515,052		-		-

13

The following tables present the activity under Level 3, fair value measurements using significant unobservable inputs by asset type, for the periods indicated:

	Three Months Ended June 30, 2014											Six Months Ended June 30, 2014
	Asset-backed			Foreign			Non-agency					Asset-backed			Foreign			Non-agency
(Dollars in thousands)	Securities			Corporate			RMBS		Total			Securities			Corporate			RMBS			Total
Beginning balance	$	3,044		$	473		$	4	$	3,521		$	3,533		$	481		$	4		$	4,018
Total gains or (losses) (realized/unrealized)										-
Included in earnings		38			17			-		55			56			18			1			75
Included in other comprehensive income (loss)		28			(20	)		-		8			93			(20	)		-			73
Purchases, issuances and settlements		(582	)		(470	)		-		(1,052	)		(1,154	)		(479	)		(1	)		(1,634	)
Transfers in and/or (out) of Level 3		-			-			-		-			-			-			-			-
Ending balance	$	2,528		$	-		$	4	$	2,532		$	2,528		$	-		$	4		$	2,532
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 June 30, 2013														Six Months Ended June 30, 2013
	Asset-backed			Foreign			Non-agency			Agency					Asset-backed			Foreign			Non-agency			Agency
(Dollars in thousands)	Securities			Corporate			RMBS			RMBS		Total			Securities			Corporate			RMBS			RMBS			Total
Beginning balance	$	4,686		$	1,792		$	5		$	-	$	6,483		$	4,849		$	11,421		$	5		$	29,398		$	45,673
Total gains or (losses) (realized/unrealized)
Included in earnings		115			(649	)		2			-		(532	)		16			(651	)		2			-			(633	)
Included in other comprehensive income (loss)		(139	)		(298	)		(25	)		-		(462	)		(329	)		(422	)		(25	)		-			(776	)
Purchases, issuances and settlements		(146	)		2,087			(71	)		-		1,870			(20	)		2,837			(71	)		-			2,746
Transfers in and/or (out) of Level 3		316			4,293			412			-		5,021			316			(5,960	)		412			(29,398	)		(34,630	)
Ending balance	$	4,832		$	7,225		$	323		$	-	$	12,380		$	4,832		$	7,225		$	323		$	-		$	12,380
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.)

There were no transfers from level 3, fair value measurements using significant unobservable inputs, for the six months ended June 30, 2014.  The transfer from level 3, fair value measurements using significant unobservable inputs, of $34,630 thousand of investments for the six months ended June 30, 2013, primarily relates to securities that were priced using single non-binding broker quotes as of December 31, 2012.  The securities were subsequently priced using a recognized pricing service as of June 30, 2013 and were classified as level 2 as of that date.

14

5.  CAPITAL TRANSACTIONS

On July 9, 2014, the Company renewed its shelf registration statement on Form S-3ASR with the Securities and Exchange Commission (the “SEC”), as a Well Known Seasoned Issuer.  This shelf registration statement can be used by Group to register common shares, preferred shares, debt securities, warrants, share purchase contracts and share purchase units; by Holdings to register debt securities and by Everest Re Capital Trust III (“Capital Trust III”) to register trust preferred securities.

6.  CONTINGENCIES

In the ordinary course of business, the Company is involved in lawsuits, arbitrations and other formal and informal dispute resolution procedures, the outcomes of which will determine the Company’s rights and obligations under insurance and reinsurance agreements.  In some disputes, the Company seeks to enforce its rights under an agreement or to collect funds owing to it.  In other matters, the Company is resisting attempts by others to collect funds or enforce alleged rights.  These disputes arise from time to time and are ultimately resolved through both informal and formal means, including negotiated resolution, arbitration and litigation.  In all such matters, the Company believes that its positions are legally and commercially reasonable.  The Company considers the statuses of these proceedings when determining its reserves for unpaid loss and loss adjustment expenses.

Aside from litigation and arbitrations related to these insurance and reinsurance agreements, the Company is not a party to any other material litigation or arbitration.

In 1993 and prior, the Company had a business arrangement with The Prudential Insurance Company of America (“The Prudential”) wherein, for a fee, the Company accepted settled claim payment obligations of certain property and casualty insurers, and, concurrently, became the owner of the annuity or assignee of the annuity proceeds funded by the property and casualty insurers specifically to fulfill these fully settled obligations.  In these circumstances, the Company would be liable if The Prudential, which has an A+ (Superior) financial strength rating from A.M. Best Company (“A.M. Best”), was unable to make the annuity payments.  The table below presents the estimated cost to replace all such annuities for which the Company was contingently liable for the periods indicated:

(Dollars in thousands)	At June 30, 2014		At December 31, 2013
	$	144,022	$	144,734

Prior to its 1995 initial public offering, the Company purchased annuities from an unaffiliated life insurance company with an A+ (Superior) financial strength rating from A.M. Best to settle certain claim liabilities of the company.  Should the life insurance company become unable to make the annuity payments, the Company would be liable for those claim liabilities.  The table below presents the estimated cost to replace all such annuities for which the Company was contingently liable for the periods indicated:

(Dollars in thousands)	At June 30, 2014		At December 31, 2013
	$	30,724	$	30,664

15

7.  OTHER COMPREHENSIVE INCOME (LOSS)

The following tables present the components of comprehensive income (loss) in the consolidated statements of operations and comprehensive income (loss) for the periods indicated:

	Three Months Ended June 30, 2014							Six Months Ended June 30, 2014
(Dollars in thousands)	Before Tax		Tax Effect			Net of Tax		Before Tax			Tax Effect			Net of Tax
Unrealized appreciation (depreciation) ("URA(D)") on securities - temporary	$	29,577	$	(10,475	)	$	19,102	$	61,573		$	(21,674	)	$	39,899
URA(D) on securities - OTTI		-		-			-		-			-			-
Reclassification of net realized losses (gains) included in net income (loss)		1,127		(270	)		857		3,124			(969	)		2,155
Foreign currency translation adjustments		10,340		(3,619	)		6,721		(1,715	)		600			(1,115	)
Benefit plan actuarial net gain (loss)		-		-			-		-			-			-
Reclassification of amortization of net gain (loss) included in net income (loss)		1,185		(415	)		770		2,371			(830	)		1,541
Total other comprehensive income (loss)	$	42,229	$	(14,779	)	$	27,450	$	65,353		$	(22,873	)	$	42,480

	Three Months Ended June 30, 2013									Six Months Ended June 30, 2013
(Dollars in thousands)	Before Tax			Tax Effect			Net of Tax			Before Tax			Tax Effect			Net of Tax
Unrealized appreciation (depreciation) ("URA(D)") on securities - temporary	$	(120,591	)	$	42,207		$	(78,385	)	$	(129,119	)	$	45,192		$	(83,928	)
URA(D) on securities - OTTI		(302	)		106			(196	)		(399	)		140			(259	)
Reclassification of net realized losses (gains) included in net income (loss)		(244	)		85			(158	)		(2,333	)		816			(1,516	)
Foreign currency translation adjustments		570			(199	)		371			(11,116	)		3,891			(7,225	)
Benefit plan actuarial net gain (loss)		-			-			-			-			-			-
Reclassification of amortization of net gain (loss) included in net income (loss)		2,070			(725	)		1,345			4,140			(1,449	)		2,691
Total other comprehensive income (loss)	$	(118,497	)	$	41,474		$	(77,023	)	$	(138,827	)	$	48,590		$	(90,237	)
(Some amounts may not reconcile due to rounding)

The following table presents details of the amounts reclassified from accumulated other comprehensive income (“AOCI”) for the periods indicated:

	Three months ended						Six months ended
	June 30,						June 30,						Affected line item within the statements of
AOCI component	2014			2013			2014			2013			operations and comprehensive income (loss)
(Dollars in thousands)
URA(D) on securities	$	1,127		$	(244	)	$	3,124		$	(2,333	)	Other net realized capital gains (losses)
		(270	)		85			(969	)		816		Income tax expense (benefit)
	$	857		$	(158	)	$	2,155		$	(1,516	)	Net income (loss)
Benefit plan net gain (loss)	$	1,185		$	2,070		$	2,371		$	4,140		Other underwriting expenses
		(415	)		(725	)		(830	)		(1,449	)	Income tax expense (benefit)
	$	770		$	1,345		$	1,541		$	2,691		Net income (loss)

The following table presents the components of accumulated other comprehensive income (loss), net of tax, in the consolidated balance sheets for the periods indicated:

	At June 30,			At December 31,
(Dollars in thousands)	2014			2013
Beginning balance of URA (D) on securities	$	55,457		$	157,163
Current period change in URA (D) of investments - temporary		42,054			(101,447	)
Current period change in URA (D) of investments - non-credit OTTI		-			(259	)
Ending balance of URA (D) on securities		97,511			55,457
Beginning balance of foreign currency translation adjustments		71,087			90,215
Current period change in foreign currency translation adjustments		(1,115	)		(19,128	)
Ending balance of foreign currency translation adjustments		69,972			71,087
Beginning balance of benefit plan net gain (loss)		(38,896	)		(62,511	)
Current period change in benefit plan net gain (loss)		1,541			23,615
Ending balance of benefit plan net gain (loss)		(37,355	)		(38,896	)
Ending balance of accumulated other comprehensive income (loss)	$	130,128		$	87,648

16

8.  CREDIT FACILITY

Effective August 15, 2011, the Company entered into a three year, $150,000 thousand unsecured revolving credit facility with a syndicate of lenders, referred to as the “Holdings Credit Facility”.  Citibank N.A. is the administrative agent for the Holdings Credit Facility.  The Holdings Credit Facility may be used for liquidity and general corporate purposes.  The Holdings Credit Facility provides for the borrowing of up to $150,000 thousand with interest at a rate selected by Holdings equal to either, (1) the Base Rate (as defined below) or (2) a periodic fixed rate equal to the Eurodollar Rate plus an applicable margin.  The Base Rate means a fluctuating interest rate per annum in effect from time to time to be equal to the higher of (a) the rate of interest publicly announced by Citibank as its base rate, (b) 0.5% per annum above the Federal Funds Rate or (c) 1% above the one month London Interbank Offered Rate (“LIBOR”), in each case plus the applicable margin.  The amount of margin and the fees payable for the Holdings Credit Facility depends upon Holdings’ senior unsecured debt rating.

The Holdings Credit Facility requires Holdings to maintain a debt to capital ratio of not greater than 0.35 to 1 and Everest Re to maintain its statutory surplus at $1,875,000 thousand plus 25% of future aggregate net income and 25% of future aggregate capital contributions after December 31, 2010, which at June 30, 2014, was $2,178,952 thousand.  As of June 30, 2014, the Company was in compliance with all Holdings Credit Facility covenants.

There are certain regulatory and contractual restrictions on the ability of Holdings’ operating subsidiaries to transfer funds to Holdings in the form of cash dividends, loans or advances.  The insurance laws of the State of Delaware, where Holdings’ direct insurance subsidiaries are domiciled, require regulatory approval before those subsidiaries can pay dividends or make loans or advances to Holdings that exceed certain statutory thresholds.  At December 31, 2013, $2,294,461 thousand of the $3,136,782 thousand in net assets of Holdings’ consolidated subsidiaries were subject to the foregoing regulatory restrictions.

The following table summarizes outstanding letters of credit and/or borrowings for the periods indicated:

(Dollars in thousands)	At June 30, 2014						At December 31, 2013
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	$	-			$	150,000	$	-
Total revolving credit borrowings				-						-
Total letters of credit				851		12/31/2014				851		12/31/2014
Total Citibank Holdings Credit Facility	$	150,000	$	851			$	150,000	$	851

The following table presents the costs incurred in connection with the Holdings Credit Facility for the periods indicated:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Credit facility fees incurred	$	55	$	113	$	97	$	178

The Company has notified the syndicate of lenders that it will not be renewing this facility at expiration.

17

9.  REINSURANCE AND TRUST AGREEMENTS

A subsidiary of the Company, Everest Re, has established a trust agreement, which effectively uses Everest Re’s investments as collateral, as security for assumed losses payable to a non-affiliated ceding company.  At June 30, 2014, the total amount on deposit in the trust account was $213,335 thousand.

On April 24, 2014, the Company entered into two collateralized reinsurance agreements with Kilimanjaro Re Limited (“Kilimanjaro”), a Bermuda based special purpose reinsurer, to provide the Company with catastrophe reinsurance coverage.  These agreements are multi-year reinsurance contracts which cover specified named storm and earthquake events.  The first agreement provides up to $250,000 thousand of reinsurance coverage from named storms in specified states of the Southeastern United States.  The second agreement provides up to $200,000 thousand of reinsurance coverage from named storms in specified states of the Southeast, Mid-Atlantic and Northeast regions of the United States and Puerto Rico as well as reinsurance coverage from earthquakes in specified states of the Southeast, Mid-Atlantic, Northeast and West regions of the United States, Puerto Rico and British Columbia.

Kilimanjaro has financed the property catastrophe reinsurance coverage by issuing $450,000 thousand of catastrophe bonds to unrelated, external investors. The proceeds from the catastrophe bond issuance will be held in a reinsurance trust throughout the duration of the reinsurance agreements and invested solely in US government money market funds with a rating of at least “AAAm” by Standard & Poor’s at the time of the bond issuance.

10.  SENIOR NOTES

The table below displays Holdings’ outstanding senior notes.  Market value is based on quoted market prices, but due to limited trading activity, these senior notes are considered Level 2 in the fair value hierarchy.

					June 30, 2014				December 31, 2013
					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	$	249,984	$	253,920	$	249,958	$	259,130
4.868% Senior notes	06/05/2014	06/01/2044		400,000		400,000		400,112		-		-

On June 5, 2014, Holdings issued $400,000 thousand of 30 year senior notes at 4.868%, which will mature on June 1, 2044.  Capitalized costs of approximately $4,300 thousand related to the issuance of the senior notes will be expensed over the 30 year life of the notes.  Interest will be paid semi-annually on June 1 and December 1 of each year.

Interest expense incurred in connection with these senior notes is as follows for the periods indicated:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Interest expense incurred	$	4,741	$	3,388	$	8,129	$	6,775

18

11.  LONG TERM SUBORDINATED NOTES

The table below displays Holdings’ outstanding fixed to floating rate long term subordinated notes.  Market value is based on quoted market prices, but due to limited trading activity, these subordinated notes are considered Level 2 in the fair value hierarchy.

Maturity Date

June 30, 2014

December 31, 2013

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

$

238,362

$

251,083

$

238,361

$

233,292

During the fixed rate interest period from May 3, 2007 through May 14, 2017, interest will be at the annual rate of 6.6%, payable semi-annually in arrears on November 15 and May 15 of each year, commencing on November 15, 2007, subject to Holdings’ right to defer interest on one or more occasions for up to ten consecutive years.  During the floating rate interest period from May 15, 2017 through maturity, interest will be based on the 3 month LIBOR plus 238.5 basis points, reset quarterly, payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, subject to Holdings’ right to defer interest on one or more occasions for up to ten consecutive years.  Deferred interest will accumulate interest at the applicable rate compounded semi-annually for periods prior to May 15, 2017, and compounded quarterly for periods from and including May 15, 2017.

Holdings can redeem the long term subordinated notes prior to May 15, 2017, in whole but not in part at the applicable redemption price, which will equal the greater of (a) 100% of the principal amount being redeemed and (b) the present value of the principal payment on May 15, 2017 and scheduled payments of interest that would have accrued from the redemption date to May 15, 2017 on the long term subordinated notes being redeemed, discounted to the redemption date on a semi-annual basis at a discount rate equal to the treasury rate plus an applicable spread of either 0.25% or 0.50%, in each case plus accrued and unpaid interest.  Holdings may redeem the long term subordinated notes on or after May 15, 2017, in whole or in part at 100% of the principal amount plus accrued and unpaid interest; however, redemption on or after the scheduled maturity date and prior to May 1, 2047 is subject to a replacement capital covenant.  This covenant is for the benefit of certain senior note holders and it mandates that Holdings receive proceeds from the sale of another subordinated debt issue, of at least similar size, before it may redeem the subordinated notes.

On March 19, 2009, Group announced the commencement of a cash tender offer for any and all of the 6.60% fixed to floating rate long term subordinated notes.  Upon expiration of the tender offer, the Company had reduced its outstanding debt by $161,441 thousand.

Interest expense incurred in connection with these long term subordinated notes is as follows for the periods indicated:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Interest expense incurred	$	3,937	$	3,937	$	7,874	$	7,874

19

12.  JUNIOR SUBORDINATED DEBT SECURITIES PAYABLE

In accordance with the provisions of the junior subordinated debt securities which were issued on March 29, 2004, Holdings elected to redeem the $329,897 thousand of 6.2% junior subordinated debt securities outstanding on May 24, 2013.  As a result of the early redemption, the Company incurred pre-tax expense of $7,282 thousand related to the immediate amortization of the remaining capitalized issuance costs on the trust preferred securities.

Interest expense incurred in connection with these junior subordinated debt securities is as follows for the periods indicated:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Interest expense incurred	$	-	$	3,068	$	-	$	8,181

Holdings considered the mechanisms and obligations relating to the trust preferred securities, taken together, constituted a full and unconditional guarantee by Holdings of Capital Trust II’s payment obligations with respect to their trust preferred securities.

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.

20

The following tables present the underwriting results for the operating segments for the periods indicated:

	Three Months Ended				Six Months Ended
U.S. Reinsurance	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Gross written premiums	$	453,115	$	418,367	$	983,416	$	853,158
Net written premiums		215,091		215,839		466,612		433,462
Premiums earned	$	246,265	$	199,254	$	464,456	$	396,199
Incurred losses and LAE		129,676		137,099		245,660		238,293
Commission and brokerage		53,380		38,540		93,516		76,670
Other underwriting expenses		11,453		9,994		20,935		20,528
Underwriting gain (loss)	$	51,756	$	13,621	$	104,345	$	60,708

	Three Months Ended				Six Months Ended
International	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Gross written premiums	$	466,008	$	354,388	$	794,886	$	654,787
Net written premiums		147,210		162,557		288,667		296,346
Premiums earned	$	147,728	$	151,125	$	292,732	$	293,018
Incurred losses and LAE		88,888		89,883		172,463		171,966
Commission and brokerage		27,412		31,156		56,581		59,263
Other underwriting expenses		8,093		7,667		15,930		15,597
Underwriting gain (loss)	$	23,335	$	22,419	$	47,758	$	46,192

	Three Months Ended					Six Months Ended
Insurance	June 30,					June 30,
(Dollars in thousands)	2014			2013		2014			2013
Gross written premiums	$	305,697		$	307,550	$	530,973		$	556,106
Net written premiums		130,426			153,214		237,152			277,969
Premiums earned	$	126,743		$	139,643	$	233,993		$	248,811
Incurred losses and LAE		102,953			106,917		181,440			192,281
Commission and brokerage		4,530			5,669		11,319			7,554
Other underwriting expenses		27,612			26,623		49,544			51,681
Underwriting gain (loss)	$	(8,352	)	$	434	$	(8,310	)	$	(2,705	)

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)	2014			2013			2014			2013
Underwriting gain (loss)	$	66,739		$	36,474		$	143,793		$	104,195
Net investment income		68,636			81,736			132,423			158,605
Net realized capital gains (losses)		125,114			15,526			121,064			325,332
Corporate expense		524			(2,065	)		(778	)		(3,837	)
Interest, fee and bond issue cost amortization expense		(8,811	)		(17,928	)		(16,247	)		(30,544	)
Other income (expense)		(8,782	)		9,744			(11,837	)		83
Income (loss) before taxes	$	243,420		$	123,487		$	368,418		$	553,834

21

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)	2014		2013		2014		2013
Canada	$	36,830	$	35,436	$	74,489	$	75,582

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

14.  RELATED-PARTY TRANSACTIONS

Parent

Group’s Board of Directors approved an amended share repurchase program authorizing Group and/or its subsidiary Holdings to purchase Group’s common shares through open market transactions, privately negotiated transactions or both.  The table below represents the amendments to the share repurchase program for the common shares approved for repurchase.

	Common Shares
	Authorized for
Amendment Date	Repurchase
(Dollars in thousands)
09/21/2004	5,000,000
07/21/2008	5,000,000
02/24/2010	5,000,000
02/22/2012	5,000,000
05/15/2013	5,000,000
	25,000,000

As of June 30, 2014, Holdings held 9,719,971 common shares of Group, which it had purchased in the open market between February 1, 2007 and March 8, 2011.  The table below represents the total purchase price for these common shares purchased.

(Dollars in thousands)
Total purchase price	$	835,371

Holdings reports these purchases as other invested assets, fair value, in the consolidated balance sheets with changes in fair value re-measurement recorded in net realized capital gains (losses) in the consolidated statements of operations and comprehensive income (loss).  The following table presents the dividends received on these common shares that are reported as net investment income in the consolidated statements of operations and comprehensive income (loss) for the period indicated.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Dividends received	$	7,290	$	4,665	$	14,580	$	9,331

Outside Directors

During the normal course of business, the Company, through its affiliates, engages in insurance and brokerage and commission business transactions, with companies controlled by or affiliated with one or more of Group’s outside directors.  Such transactions, individually and in the aggregate, are not material to the Company’s financial condition, results of operation and cash flows.

22

Affiliated Companies

Everest Global Services, Inc. (“Global Services”), an affiliate of Holdings, provides centralized management and home office services, through a management agreement, to Holdings and other affiliated companies within Holdings’ consolidated structure.  Services provided by Everest Global include executive managerial services, legal services, actuarial services, accounting services, information technology services and others.

The following table presents the expenses incurred by Holdings from services provided by Everest Global for the periods indicated.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Expenses incurred	$	17,676	$	18,214	$	33,519	$	36,769

Affiliates

The table below represents affiliated quota share reinsurance agreements ("whole account quota share") for all new and renewal business for the indicated coverage period:

(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
01/01/2011-12/31/2011	Everest Re		50.0	%	Bermuda Re	property / casualty business		150,000			300,000
01/01/2012	Everest Re		50.0	%	Bermuda Re	property / casualty business		100,000			200,000
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	(3)		-
01/01/2011-12/31/2011	Everest Re- Canadian Branch		60.0	%	Bermuda Re	property business		350,000	(3)		-
01/01/2012-12/31/2012	Everest Re- Canadian Branch		75.0	%	Bermuda Re	property / casualty business		206,250	(3)		412,500	(3)
01/01/2013-12/31/2013	Everest Re- Canadian Branch		75.0	%	Bermuda Re	property / casualty business		150,000	(3)		412,500	(3)
01/01/2014	Everest Re- Canadian Branch		75.0	%	Bermuda Re	property / casualty business		262,500	(3)		412,500	(3)

01/01/2012 Everest Canada 80.0 % Everest Re- Canadian Branch property business - -

(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.
(3)	Amounts shown are Canadian dollars.

23

For premiums earned and losses incurred for the period January 1, 2002 through December 31, 2002, Everest Re, Everest National Insurance Company and Everest Security Insurance Company entered into an Excess of Loss Reinsurance Agreement with Bermuda Re, covering workers’ compensation losses occurring on and after January 1, 2002, as respect to new, renewal and in force policies effective on that date through December 31, 2002.  This agreement was commuted as of September 30, 2013.  The table below represents Bermuda Re's liability limits for any losses per one occurrence.

	Liability Limits
(Dollars in thousands)	Exceeding		Not to Exceed
Losses per one occurrence	$	100,000	$	150,000

The table below represents loss portfolio transfer reinsurance agreements whereby net insurance exposures and reserves were transferred to an affiliate.

(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

The following tables summarize the premiums and losses ceded by the Company to Bermuda Re and Everest International, respectively, and premiums and losses assumed by the Company from Everest Canada for the periods indicated:

	Three Months Ended				Six Months Ended
Bermuda Re	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Ceded written premiums	$	524,057	$	509,451	$	1,042,074	$	986,582
Ceded earned premiums		535,287		475,419		1,015,100		929,801
Ceded losses and LAE (a)		296,322		266,455		534,823		497,986

	Three Months Ended					Six Months Ended
Everest International	June 30,					June 30,
(Dollars in thousands)	2014		2013			2014		2013
Ceded written premiums	$	203	$	269		$	88	$	134
Ceded earned premiums		348		353			274		414
Ceded losses and LAE		260		(643	)		2,144		(603	)

	Three Months Ended				Six Months Ended
Everest Canada	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Assumed written premiums	$	11,215	$	6,287	$	15,225	$	9,125
Assumed earned premiums		5,268		3,619		9,956		7,389
Assumed losses and LAE		3,091		2,048		6,383		4,274

(a) Ceded losses and LAE include the Mt. McKinley loss portfolio transfer that constitutes losses ceded under retroactive reinsurance and therefore, in accordance with FASB guidance, a deferred gain on retroactive reinsurance is reflected in other expenses on the consolidated statements of operations and comprehensive income (loss).

Everest Re sold net assets of its UK branch to Bermuda Re and provided Bermuda Re with a reserve indemnity agreement allowing for indemnity payments of up to 90% of ₤25.0 million of the excess of 2002 and prior reserves, provided that any recognition of profit from the reserves for 2002 and prior underwriting years is taken into account.  The limit available under this agreement was fully exhausted at December 31, 2004.

24

Effective February 27, 2013, Group established a new subsidiary, Mt. Logan Re, which is a Class 3 insurer based in Bermuda.  Effective July 1, 2013, Mt. Logan Re established separate segregated accounts for its business activity, which will invest in a diversified set of catastrophe exposures.

The following table summarizes the premiums and losses that are ceded by the Company to Mt. Logan Re and assumed by the Company from Mt. Logan Re.

	Three Months Ended				Six Months Ended
Mt. Logan Re	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Ceded written premiums	$	20,228	$	-	$	48,594	$	-
Ceded earned premiums		22,680		-		40,517		-
Ceded losses and LAE		9,648		-		14,791		-
Assumed written premiums		-		-		9,919		-
Assumed earned premiums		2,605		-		4,711		-
Assumed losses and LAE		-		-		-		-

15. INCOME TAXES

The Company is domiciled in the United States and has subsidiaries domiciled within the United States with significant branches in Canada and Singapore.  The Company’s non-U.S. branches are subject to income taxation at varying rates in their respective domiciles.

For interim reporting periods, the company is generally required to use the annualized effective tax rate (“AETR”) method, as prescribed by ASC 740-270, Interim Reporting, to calculate its income tax provision.  Under this method, the AETR is applied to the interim year-to-date pre-tax income to determine the income tax expense or benefit for the year-to-date period.  The income tax expense or benefit for a quarter represents the difference between the year-to-date income tax expense or benefit for the current year-to-date period less such amount for the immediately preceding year-to-date period.  Management considers the impact of all known events in its estimation of the Company’s annual pre-tax income and AETR.

16. SUBSEQUENT EVENTS

The Company has evaluated known recognized and non-recognized subsequent events.  The Company does not have any subsequent events to report.

25

ITEM 2.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

Industry Conditions.

The worldwide reinsurance and insurance businesses are highly competitive, as well as cyclical by product and market.  As such, financial results tend to fluctuate with periods of constrained availability, high rates and strong profits followed by periods of abundant capacity, low rates and constrained profitability.  Competition in the types of reinsurance and insurance business that we underwrite is based on many factors, including the perceived overall financial strength of the reinsurer or insurer, ratings of the reinsurer or insurer by A.M. Best and/or Standard & Poor’s, underwriting expertise, the jurisdictions where the reinsurer or insurer is licensed or otherwise authorized, capacity and coverages offered, premiums charged, other terms and conditions of the reinsurance and insurance business offered, services offered, speed of claims payment and reputation and experience in lines written.  Furthermore, the market impact from these competitive factors related to reinsurance and insurance is generally not consistent across lines of business, domestic and international geographical areas and distribution channels.

We compete in the U.S. and international reinsurance and insurance markets with numerous global competitors.  Our competitors include independent reinsurance and insurance companies, subsidiaries or affiliates of established worldwide insurance companies, reinsurance departments of certain insurance companies and domestic and international underwriting operations, including underwriting syndicates at Lloyd’s.  Some of these competitors have greater financial resources than we do and have established long term and continuing business relationships, which can be a significant competitive advantage.  In addition, the lack of strong barriers to entry into the reinsurance business and the potential for securitization of reinsurance and insurance risks through capital markets provide additional sources of potential reinsurance and insurance capacity and competition.

Worldwide insurance and reinsurance market conditions continued to be very competitive, particularly in the casualty lines of business.  Generally, there was ample insurance and reinsurance capacity relative to demand.  Competition and its effect on rates, terms and conditions vary widely by market and coverage yet continued to be most prevalent in the U.S. casualty insurance and reinsurance markets and additional capacity from the capital markets is impacting worldwide catastrophe rates.

Catastrophe rates tend to fluctuate by global region, particularly areas recently impacted by large catastrophic events.  During the second and third quarters of 2013, Canada experienced historic flooding in Alberta and Toronto, which has resulted in higher catastrophe rates in these areas.  Although there were flooding and wind storm events in Europe and Asia in the latter part of 2013, the overall 2013 catastrophe losses for the industry were lower than average.  This lower level of losses, combined with increased competition is putting downward pressure on rates in certain geographical areas resulting in lower rates for most catastrophe coverages in the beginning of 2014.

Overall, we believe that current marketplace conditions, particularly for catastrophe coverages, provide profit opportunities for us given our strong ratings, distribution system, reputation and expertise.  We continue to employ our strategy of targeting business that offers the greatest profit potential, while maintaining balance and diversification in our overall portfolio.

26

Financial Summary.

We monitor and evaluate our overall performance based upon financial results.  The following table displays a summary of the consolidated net income (loss), ratios and stockholder’s equity for the periods indicated:

	Three Months Ended						Percentage			Six Months Ended						Percentage
	June 30,						Increase/			June 30,						Increase/
(Dollars in millions)	2014			2013			(Decrease)			2014			2013			(Decrease)
Gross written premiums	$	1,224.8		$	1,080.3			13.4	%	$	2,309.3		$	2,064.1			11.9	%
Net written premiums		492.7			531.6			-7.3	%		992.4			1,007.8			-1.5	%
REVENUES:
Premiums earned	$	520.7		$	490.0			6.3	%	$	991.2		$	938.0			5.7	%
Net investment income		68.6			81.7			-16.0	%		132.4			158.6			-16.5	%
Net realized capital gains (losses)		125.1			15.5		NM				121.1			325.3			-62.8	%
Other income (expense)		(8.8	)		9.7			-190.1	%		(11.8	)		0.1		NM
Total revenues		705.7			597.0			18.2	%		1,232.8			1,422.0			-13.3	%
CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses		321.5			333.9			-3.7	%		599.6			602.5			-0.5	%
Commission, brokerage, taxes and fees		85.3			75.4			13.2	%		161.4			143.5			12.5	%
Other underwriting expenses		47.2			44.3			6.5	%		86.4			87.8			-1.6	%
Corporate expense		(0.5	)		2.1			-125.4	%		0.8			3.8			-79.7	%
Interest, fee and bond issue cost amortization expense		8.8			17.9			-50.9	%		16.2			30.5			-46.8	%
Total claims and expenses		462.3			473.5			-2.4	%		864.4			868.2			-0.4	%
INCOME (LOSS) BEFORE TAXES		243.4			123.5			97.1	%		368.4			553.8			-33.5	%
Income tax expense (benefit)		85.2			38.2			123.0	%		123.8			182.9			-32.3	%
NET INCOME (LOSS)	$	158.2		$	85.3			85.5	%	$	244.6		$	370.9			-34.0	%
RATIOS:							Point Change									Point Change
Loss ratio		61.7	%		68.1	%		(6.4	)		60.5	%		64.2	%		(3.7	)
Commission and brokerage ratio		16.4	%		15.4	%		1.0			16.3	%		15.3	%		1.0
Other underwriting expense ratio		9.1	%		9.1	%		-			8.7	%		9.4	%		(0.7	)
Combined ratio		87.2	%		92.6	%		(5.4	)		85.5	%		88.9	%		(3.4	)
										At			At			Percentage
										June 30,			December 31,			Increase/
(Dollars in millions)											2014			2013		(Decrease)
Balance sheet data:
Total investments and cash										$	10,001.6		$	9,495.1			5.3	%
Total assets											16,626.2			15,521.0			7.1	%
Loss and loss adjustment expense reserves											7,657.6			7,653.2			0.1	%
Total debt											888.3			488.3			81.9	%
Total liabilities											12,142.1			11,330.5			7.2	%
Stockholder's equity											4,484.1			4,190.5			7.0	%
(NM, not meaningful)
(Some amounts may not reconcile due to rounding)

Revenues.

Premiums.  Gross written premiums increased by 13.4% to $1,224.8 million for the three months ended June 30, 2014, compared to $1,080.3 million for the three months ended June 30, 2013, reflecting a $146.4 million, or 18.9%, increase in our reinsurance business while our insurance business remained relatively flat.  The increase in reinsurance premiums was mainly due to new business: quota share contracts, contracts with catastrophe exposed risks and mortgage guaranty business.  Gross written premiums increased by 11.9% to $2,309.3 million for the six months ended June 30, 2014, compared to $2,064.1 million for the six months ended June 30, 2013, reflecting a $270.4 million, or 17.9%, increase in our reinsurance business, partially offset by a $25.1 million, or 4.5%, decrease in our insurance business.  The increase in reinsurance premiums was mainly due to new business: quota share contracts, contracts with catastrophe exposed risks and mortgage guaranty business.  The decrease in insurance premiums was primarily due to lower crop premiums, partially offset by an increase in non-standard auto business.

27

Net written premiums decreased by 7.3% to $492.7 million for the three months ended June 30, 2014 compared to $531.6 million for the three months ended June 30, 2013, and decreased by 1.5% to $992.4 million for the six months ended June 30, 2014 compared to $1,007.8 million for the six months ended June 30, 2013.  The variance between the increase in gross written premiums compared to the decrease in net written premiums is primarily due to a higher utilization of reinsurance related to the new quota share contracts.  Premiums earned increased by 6.3% to $520.7 million for the three months ended June 30, 2014, compared to $490.0 million for the three months ended June 30, 2013 and increased by 5.7% to $991.2 million for the six months ended June 30, 2014, compared to $938.0 million for the six months ended June 30, 2013.  The change in premiums earned relative to net written premiums is the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.

Net Investment Income.  Net investment income decreased by 16.0% to $68.6 million for the three months ended June 30, 2014, compared with net investment income of $81.7 million for the three months ended June 30, 2013 and decreased by 16.5% to $132.4 million for the six months ended June 30, 2014, compared with net investment income of $158.6 million for the six months ended June 30, 2013.  Net pre-tax investment income, as a percentage of average invested assets, was 3.2% for the three months ended June 30, 2014 compared to 4.0% for the three months ended June 30, 2013 and was 3.1% for the six months ended June 30, 2014 compared to 3.8% for the six months ended June 30, 2013.  The decline in income and yield was primarily the result of a decrease in our limited partnership income.

Net Realized Capital Gains (Losses). Net realized capital gains were $125.1 million and $15.5 million for the three months ended June 30, 2014 and 2013, respectively.  The $125.1 million was comprised of $124.5 million of gains from fair value re-measurements and $0.8 million of gains from sales on our fixed maturity and equity securities, partially offset by $0.2 million of other-than-temporary impairments. The net realized capital gains of $15.5 million for the three months ended June 30, 2013, were the result of $16.3 million of net realized capital gains from sales on our fixed maturity and equity securities, partially offset by $0.8 million of losses from fair value re-measurements.

Net realized capital gains were $121.1 million and $325.3 million for the six months ended June 30, 2014 and 2013, respectively.  The $121.1 million was comprised of $122.9 million of gains from fair value re-measurements, partially offset by $1.6 million of losses from sales on our fixed maturity and equity securities and $0.2 million of other-than-temporary impairments. The net realized capital gains of $325.3 million for the six months ended June 30, 2013, were the result of $298.9 million of gains from fair value re-measurements and $26.4 million of net realized capital gains from sales on our fixed maturity and equity securities.

Other Income (Expense).  We recorded other expense of $8.8 million and $11.8 million for the three and six months ended June 30, 2014, respectively.  We recorded other income of $9.7 million and $0.1 million for the three and six months ended June 30, 2013, respectively.  The change was primarily due to fluctuations in currency exchange rates for the corresponding periods and fluctuations in the amortization of deferred gains on retroactive reinsurance agreements with affiliates.

28

Claims and Expenses.

Incurred Losses and Loss Adjustment Expenses.  The following tables present our incurred losses and loss adjustment expenses (“LAE”) for the periods indicated.

	Three Months Ended June 30,
	Current			Ratio %/				Prior			Ratio %/				Total			Ratio %/
(Dollars in millions)	Year			Pt Change				Years			Pt Change				Incurred			Pt Change
2014
Attritional	$	302.6			58.1	%		$	(1.9	)		-0.4	%		$	300.7			57.7	%
Catastrophes		20.5			3.9	%			0.3			0.1	%			20.8			4.0	%
Total segment	$	323.1			62.0	%		$	(1.6	)		-0.3	%		$	321.5			61.7	%
2013
Attritional	$	290.4			59.2	%		$	11.7			2.4	%		$	302.1			61.6	%
Catastrophes		30.0			6.1	%			1.8			0.4	%			31.8			6.5	%
Total segment	$	320.4			65.3	%		$	13.5			2.8	%		$	333.9			68.1	%
Variance 2014/2013
Attritional	$	12.2			(1.1	)	pts	$	(13.6	)		(2.8	)	pts	$	(1.4	)		(3.9	)	pts
Catastrophes		(9.5	)		(2.2	)	pts		(1.5	)		(0.3	)	pts		(11.0	)		(2.5	)	pts
Total segment	$	2.7			(3.3	)	pts	$	(15.1	)		(3.1	)	pts	$	(12.4	)		(6.4	)	pts

	Six Months Ended June 30,
	Current			Ratio %/				Prior			Ratio %/				Total			Ratio %/
(Dollars in millions)	Year			Pt Change				Years			Pt Change				Incurred			Pt Change
2014
Attritional	$	583.9			58.8	%		$	(2.4	)		-0.2	%		$	581.5			58.6	%
Catastrophes		20.5			2.1	%			(2.4	)		-0.2	%			18.1			1.9	%
Total segment	$	604.4			60.9	%		$	(4.8	)		-0.4	%		$	599.6			60.5	%
2013
Attritional	$	546.4			58.2	%		$	10.1			1.1	%		$	556.5			59.3	%
Catastrophes		30.0			3.2	%			16.1			1.7	%			46.1			4.9	%
Total segment	$	576.4			61.4	%		$	26.2			2.8	%		$	602.5			64.2	%
Variance 2014/2013
Attritional	$	37.5			0.6		pts	$	(12.5	)		(1.3	)	pts	$	25.0			(0.7	)	pts
Catastrophes		(9.5	)		(1.1	)	pts		(18.5	)		(1.9	)	pts		(28.0	)		(3.0	)	pts
Total segment	$	28.0			(0.5	)	pts	$	(31.0	)		(3.2	)	pts	$	(2.9	)		(3.7	)	pts
(Some amounts may not reconcile due to rounding.)

Incurred losses and LAE decreased by 3.7% to $321.5 million for the three months ended June 30, 2014 compared to $333.9 million for the three months ended June 30, 2013, primarily due to decreases in prior years attritional losses and by a reduction in current year catastrophe losses, partially offset by an increase in current year attritional losses.  The $20.5 million of current year catastrophe losses for the three months ended June 30, 2014 represented 3.9 points and related to the Japan snowstorm ($13.2 million) and the Chilean earthquake ($7.3 million).  The current year catastrophe losses of $30.0 million for the three months ended June 30, 2013 were due to U.S. storms ($25.0 million), Canadian floods ($2.5 million) and European floods ($2.5 million).

Incurred losses and LAE decreased by 0.5% to $599.6 million for the six months ended June 30, 2014 compared to $602.5 million for the six months ended June 30, 2013, primarily due to a reduction in catastrophe losses and prior years attritional losses, partially offset by an increase in current year attritional losses.  The increase in current year attritional losses is primarily attributable to the increase in premiums earned.  The $20.5 million of current year catastrophe losses for the six months ended June 30, 2014 represented 2.1 points and related to the Japan snowstorm ($13.2 million) and the Chilean earthquake ($7.3 million).  The current year catastrophe losses of $30.0 million for the six months ended June 30, 2013 were due to U.S. storms ($25.0 million), Canadian floods ($2.5 million) and European floods ($2.5 million).

29

Commission, Brokerage, Taxes and Fees.  Commission, brokerage, taxes and fees increased by 13.2% to $85.3 million for the three months ended June 30, 2014 compared to $75.4 million for the three months ended June 30, 2013.  Commission, brokerage, taxes and fees increased by 12.5% to $161.4 million for the six months ended June 30, 2014 compared to $143.5 million for the six months ended June 30, 2013.  The quarter over quarter and year over year changes were primarily due to the impact of the increase in premiums earned, higher contingent commissions and changes in the mix of business.

Other Underwriting Expenses.  Other underwriting expenses were comparable at $47.2 million and $44.3 million for the three months ended June 30, 2014 and 2013, respectively, and $86.4 million and $87.8 million for the six months ended June 30, 2014 and 2013, respectively.

Corporate Expenses.  Corporate expenses, which are general operating expenses that are not allocated to segments, were ($0.5) million and $2.1 million for the three months ended June 30, 2014 and 2013, respectively, and $0.8 million and $3.8 million for the six months ended June 30, 2014 and 2013, respectively.  The decreases in corporate expenses were mainly due to the timing of allocations and lower compensation expenses.

Interest, Fees and Bond Issue Cost Amortization Expense. Interest, fees and other bond amortization expense was $8.8 million and $17.9 million for the three months ended June 30, 2014 and 2013, respectively, and $16.2 million and $30.5 million for the six months ended June 30, 2014 and 2013, respectively.  The decreases were primarily due to the redemption of $329.9 million of trust preferred securities in May 2013, but partially offset by the impact of the issuance of $400.0 million of senior notes on June 5, 2014.

Income Tax Expense (Benefit).  We had income tax expenses of $85.2 million and $38.2 million for the three months ended June 30, 2014 and 2013, respectively, and $123.8 million and $182.9 million for the six months ended June 30, 2014 and 2013, respectively.  Income tax expense is primarily a function of the geographic location of the Company’s pre-tax income and the statutory tax rates in those jurisdictions, as affected by tax-exempt investment income and as calculated under the AETR method.  Variations in the AETR generally result from changes in the relative levels of pre-tax income, including the impact of catastrophe losses and net capital gains (losses), among jurisdictions with different tax rates.  The increase in income tax expense for the three months ended June 30, 2014 compared to 2013 is primarily due to higher net realized capitals gains in the U.S.  The decrease in income tax expense for the six months ended June 30, 2014 compared to 2013 is primarily due to lower net realized capital gains in the US.

Net Income (Loss).

Our net income was $158.2 million and $85.3 million for the three months ended June 30, 2014 and 2013, respectively, and $244.6 million and $370.9 million for the six months ended June 30, 2014 and 2013, respectively.  The changes were primarily driven by the financial component fluctuations explained above.

Ratios.

Our combined ratio decreased by 5.4 points to 87.2% for the three months ended June 30, 2014 compared to 92.6% for the three months ended June 30, 2013 and decreased by 3.4 points to 85.5% for the six months ended June 30, 2014 compared to 88.9% for the six months ended June 30, 2013.  The loss ratio component decreased 6.4 points and 3.7 points for the three and six months ended June 30, 2014, respectively, over the same periods last year, primarily due to lower catastrophe losses and lower prior years attritional losses.  The commission and brokerage ratio components increased 1.0 points for the three and six months ended June 30, 2014 over the same period last year primarily due to an increase in contingent commissions and changes in the mix of business.  The other underwriting expense ratio components remained relatively flat for the three months ended June 30, 2014, and decreased 0.7 points for the six months ended June 30, 2014.

30

Stockholder's Equity.

Stockholders’ equity increased by $293.6 million to $4,484.1 million at June 30, 2014 from $4,190.5 million at December 31, 2013, principally as a result of $244.6 million of net income, $42.1 million of net unrealized appreciation on investments, net of tax, $6.5 million of share-based compensation transactions and $1.5 million of net benefit plan obligation adjustments, partially offset by $1.1 million of net foreign currency translation adjustments.

Consolidated Investment Results

Net Investment Income.

Net investment income decreased 16.0% to $68.6 million for the three months ended June 30, 2014 compared to $81.7 million for the three months ended June 30, 2013 and decreased by 16.5% to $132.4 million for the six months ended June 30, 2014 compared to $158.6 million for the six months ended June 30, 2013.  The decreases were primarily due to a decline in income from our limited partnership investments, partially offset by an increase in dividends from parent’s shares.

The following table shows the components of net investment income for the periods indicated:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Dollars in millions)	2014			2013			2014			2013
Fixed maturities	$	53.9		$	53.4		$	105.0		$	107.3
Equity securities		9.2			11.1			18.1			18.8
Short-term investments and cash		0.5			0.1			0.6			0.4
Other invested assets
Limited partnerships		2.7			14.2			(0.4	)		25.5
Dividends from Parent's shares		7.3			4.7			14.6			9.3
Other		0.3			1.9			2.4			4.3
Gross investment income before adjustments		73.9			85.4			140.3			165.6
Funds held interest income (expense)		1.2			1.0			3.3			3.4
Gross investment income		75.1			86.4			143.6			169.1
Investment expenses		(6.4	)		(4.7	)		(11.2	)		(10.5	)
Net investment income	$	68.6		$	81.7		$	132.4		$	158.6
(Some amounts may not reconcile due to rounding)

The following tables show a comparison of various investment yields for the periods indicated:

	At	At
	June 30,	December 31,
	2014	2013
Imbedded pre-tax yield of cash and invested assets	3.3%	3.3%
Imbedded after-tax yield of cash and invested assets	2.3%	2.4%

	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2014	2013	2014	2013
Annualized pre-tax yield on average cash and invested assets	3.2%	4.0%	3.1%	3.8%
Annualized after-tax yield on average cash and invested assets	2.2%	2.8%	2.2%	2.8%

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Net Realized Capital Gains (Losses).

The following table presents the composition of our net realized capital gains (losses) for the periods indicated:

	Three Months Ended June 30,									Six Months Ended June 30,
(Dollars in millions)	2014			2013			Variance			2014			2013			Variance
Gains (losses) from sales:
Fixed maturity securities, market value
Gains	$	3.8		$	4.6		$	(0.8	)	$	5.1		$	8.3		$	(3.2	)
Losses		(4.7	)		(4.4	)		(0.3	)		(8.0	)		(6.0	)		(2.0	)
Total		(0.9	)		0.2			(1.1	)		(2.9	)		2.3			(5.2	)
Fixed maturity securities, fair value
Gains		-			0.3			(0.3	)		1.2			0.4			0.8
Losses		-			(0.1	)		0.1			(0.3	)		(0.3	)		-
Total		-			0.2			(0.2	)		0.9			0.1			0.8
Equity securities, fair value
Gains		3.7			20.5			(16.8	)		10.3			29.4			(19.1	)
Losses		(2.0	)		(4.6	)		2.6			(9.9	)		(5.4	)		(4.5	)
Total		1.7			15.9			(14.2	)		0.4			24.0			(23.6	)
Total net realized gains (losses) from sales
Gains		7.5			25.4			(17.9	)		16.6			38.1			(21.5	)
Losses		(6.7	)		(9.1	)		2.4			(18.2	)		(11.7	)		(6.5	)
Total		0.8			16.3			(15.5	)		(1.6	)		26.4			(28.0	)
Other than temporary impairments:		(0.2	)		-			(0.2	)		(0.2	)		-			(0.2	)
Gains (losses) from fair value adjustments:
Fixed maturities, fair value		-			(1.7	)		1.7			-			(1.6	)		1.6
Equity securities, fair value		52.2			16.4			35.8			78.0			122.5			(44.5	)
Other invested assets, fair value		72.3			(15.5	)		87.8			44.9			178.0			(133.1	)
Total		124.5			(0.8	)		125.3			122.9			298.9			(176.0	)
Total net realized gains (losses)	$	125.1		$	15.5		$	109.6		$	121.1		$	325.3		$	(204.2	)
(Some amounts may not reconcile due to rounding)

Net realized capital gains were $125.1 million and $15.5 million for the three months ended June 30, 2014 and 2013, respectively.  For the three months ended June 30, 2014, we recorded $124.5 million of net realized capital gains due to fair value re-measurements on equity securities and other invested assets and $0.8 million of net realized capital gains from sales of fixed maturity and equity securities, partially offset by $0.2 million of other-than-temporary impairments.  For the three months ended June 30, 2013, we recorded $16.3 million of net realized capital gains from sales of fixed maturity and equity securities, partially offset by $0.8 million of net realized capital losses due to fair value re-measurements on fixed maturity, equity securities and other invested assets.  The fixed maturity and equity sales for the three months ended June 30, 2014 and 2013 related primarily to adjusting the portfolios for overall market changes and individual credit shifts along with maintaining a balanced foreign currency exposure.

Net realized capital gains were $121.1 million and $325.3 million for the six months ended June 30, 2014 and 2013, respectively.  For the six months ended June 30, 2014, we recorded $122.9 million of net realized capital gains due to fair value re-measurements on equity securities and other invested assets, partially offset by $1.6 million of net realized capital losses from sales of fixed maturity and equity securities and $0.2 million of other-than-temporary impairments.  For the six months ended June 30, 2013, we recorded $298.9 million of net realized capital gains due to fair value re-measurements on fixed maturity, equity securities and other invested assets and $26.4 million of net realized capital gains from sales of fixed maturity and equity securities.  The fixed maturity and equity sales for the six months ended June 30, 2014 and 2013 related primarily to adjusting the portfolios for overall market changes and individual credit shifts along with maintaining a balanced foreign currency exposure.

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Segment Results.

The U.S. Reinsurance operation writes property and casualty reinsurance and specialty lines of business, including Marine, Aviation, Surety and 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 LAE incurred, commission and brokerage expenses and other underwriting expenses.  We measure our underwriting results 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.

Our loss and LAE reserves are our best estimate of our ultimate liability for unpaid claims.  We re-evaluate our estimates on an ongoing basis, including all prior period reserves, taking into consideration all available information and, in particular, recently reported loss claim experience and trends related to prior periods.  Such re-evaluations are recorded in incurred losses in the period in which the re-evaluation is made.

The following discusses the underwriting results for each of our segments for the periods indicated:

U.S. Reinsurance.

The following table presents the underwriting results and ratios for the U.S. Reinsurance segment for the periods indicated.

	Three Months Ended June 30,												Six Months Ended June 30,
(Dollars in millions)	2014			2013			Variance			% Change			2014			2013			Variance		% Change
Gross written premiums	$	453.1		$	418.4		$	34.7			8.3	%	$	983.4		$	853.2		$	130.3		15.3	%
Net written premiums		215.1			215.8			(0.7	)		-0.3	%		466.6			433.5			33.2		7.6	%
Premiums earned	$	246.3		$	199.3		$	47.0			23.6	%	$	464.5		$	396.2		$	68.3		17.2	%
Incurred losses and LAE		129.7			137.1			(7.4	)		-5.4	%		245.7			238.3			7.4		3.1	%
Commission and brokerage		53.4			38.5			14.8			38.5	%		93.5			76.7			16.8		22.0	%
Other underwriting expenses		11.5			10.0			1.5			14.6	%		20.9			20.5			0.4		2.0	%
Underwriting gain (loss)	$	51.8		$	13.6		$	38.1		NM			$	104.3		$	60.7		$	43.6		71.9	%
										Point Chg											Point Chg
Loss ratio		52.7	%		68.8	%					(16.1	)		52.9	%		60.1	%				(7.2	)
Commission and brokerage ratio		21.7	%		19.3	%					2.4			20.1	%		19.4	%				0.7
Other underwriting expense ratio		4.6	%		5.1	%					(0.5	)		4.5	%		5.2	%				(0.7	)
Combined ratio		79.0	%		93.2	%					(14.2	)		77.5	%		84.7	%				(7.2	)
(NM, not meaningful)
(Some amounts may not reconcile due to rounding.)

Premiums.Gross written premiums increased by 8.3% to $453.1 million for the three months ended June 30, 2014 from $418.4 million for the three months ended June 30, 2013, primarily due to new business opportunities, particularly for contracts with catastrophe exposed risks and mortgage guaranty business.  Net written premiums decreased by 0.3% to $215.1 million for the three months ended June 30, 2014 compared to $215.8 million for the three months ended June 30, 2013.  The variance between the increase in gross written premiums compared to the decrease in net written premiums is primarily due to the impact of changes in affiliated reinsurance agreements, particularly Mt. Logan.  Premiums earned increased 23.6% to $246.3 million for the three months ended June 30, 2014 compared to $199.3 million for the three months ended June 30, 2013.  The change in premiums earned relative to net written premiums is primarily

33

the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.

Gross written premiums increased by 15.3% to $983.4 million for the six months ended June 30, 2014 from $853.2 million for the six months ended June 30, 2013, primarily due to new business opportunities, particularly for contracts with catastrophe exposed risks and mortgage guaranty business.  Net written premiums increased by 7.6% to $466.6 million for the six months ended June 30, 2014 compared to $433.5 million for the six months ended June 30, 2013.  The variance between the increase in gross written premiums compared to the decrease in net written premiums is primarily due to the impact of changes in affiliated reinsurance agreements, particularly Mt. Logan.  Premiums earned increased 17.2% to $464.5 million for the six months ended June 30, 2014 compared to $396.2 million for the six months ended June 30, 2013.  The change in premiums earned relative to net written premiums is primarily the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.

Incurred Losses and LAE.The following tables present the incurred losses and LAE for the U.S. Reinsurance segment for the periods indicated.

	Three Months Ended June 30,
	Current			Ratio %/				Prior			Ratio %/				Total			Ratio %/
(Dollars in millions)	Year			Pt Change				Years			Pt Change				Incurred			Pt Change
2014
Attritional	$	127.4			51.7	%		$	(1.6	)		-0.6	%		$	125.8			51.1	%
Catastrophes		3.2			1.3	%			0.7			0.3	%			3.9			1.6	%
Total segment	$	130.6			53.0	%		$	(0.9	)		-0.3	%		$	129.7			52.7	%
2013
Attritional	$	103.9			52.1	%		$	5.7			2.9	%		$	109.6			55.0	%
Catastrophes		27.5			13.8	%			-			0.0	%			27.5			13.8	%
Total segment	$	131.4			65.9	%		$	5.7			2.9	%		$	137.1			68.8	%
Variance 2014/2013
Attritional	$	23.5			(0.4	)	pts	$	(7.3	)		(3.5	)	pts	$	16.2			(3.9	)	pts
Catastrophes		(24.3	)		(12.5	)	pts		0.7			0.3		pts		(23.6	)		(12.2	)	pts
Total segment	$	(0.8	)		(12.9	)	pts	$	(6.6	)		(3.2	)	pts	$	(7.4	)		(16.1	)	pts

	Six Months Ended June 30,
	Current			Ratio %/				Prior			Ratio %/				Total			Ratio %/
(Dollars in millions)	Year			Pt Change				Years			Pt Change				Incurred			Pt Change
2014
Attritional	$	248.0			53.3	%		$	(4.8	)		-1.0	%		$	243.2			52.3	%
Catastrophes		3.2			0.7	%			(0.7	)		-0.1	%			2.5			0.6	%
Total segment	$	251.2			54.0	%		$	(5.5	)		-1.1	%		$	245.7			52.9	%
2013
Attritional	$	192.2			48.5	%		$	3.4			0.9	%		$	195.6			49.4	%
Catastrophes		27.5			6.9	%			15.2			3.8	%			42.7			10.7	%
Total segment	$	219.7			55.4	%		$	18.6			4.7	%		$	238.3			60.1	%
Variance 2014/2013
Attritional	$	55.8			4.8		pts	$	(8.2	)		(1.9	)	pts	$	47.6			2.9		pts
Catastrophes		(24.3	)		(6.2	)	pts		(15.9	)		(3.9	)	pts		(40.2	)		(10.1	)	pts
Total segment	$	31.5			(1.4	)	pts	$	(24.1	)		(5.8	)	pts	$	7.4			(7.2	)	pts
(Some amounts may not reconcile due to rounding.)

Incurred losses decreased by 5.4% to $129.7 million for the three months ended June 30, 2014 compared to $137.1 million for the three months ended June 30, 2013, primarily due to the decrease in current year catastrophe losses of $24.3 million and a decrease in prior years attritional losses, partially offset by an increase of $23.5 million in current year attritional losses due to the impact of the increase in premiums earned.  The $3.2 million of current year catastrophe losses for the three months ended June 30, 2014 related to the Japan snowstorm ($3.2 million).  The $27.5 million of current year catastrophe losses for the three months ended June 30, 2013 were due to the U.S. storms ($25.0 million) and the European floods ($2.5 million).

34

Incurred losses increased by 3.1% to $245.7 million for the six months ended June 30, 2014 compared to $238.3 million for the six months ended June 30, 2013, primarily due to the increase in current year attritional losses of $55.8 million resulting primarily from the impact of the increase in premiums earned, partially offset by a decrease of $24.3 million in current year catastrophe losses and a decrease of $15.9 million in prior years catastrophe losses.  The $3.2 million of current year catastrophe losses for the six months ended June 30, 2014 related to the Japan snowstorm ($3.2 million).  The $27.5 million of current year catastrophe losses for the six months ended June 30, 2013 were due to the U.S. storms ($25.0 million) and the European floods ($2.5 million).

Segment Expenses.  Commission and brokerage expenses increased by 38.5% to $53.4 million for the three months ended June 30, 2014 compared to $38.5 million for the three months ended June 30, 2013.  Commission and brokerage expenses increased by 22.0% to $93.5 million for the six months ended June 30, 2014 compared to $76.7 million for the six months ended June 30, 2013.  These variances were due to the impact of the increases in premiums earned, an increase in contingent commissions and changes in the mix of business.

Segment other underwriting expenses increased to $11.5 million for the three months ended June 30, 2014 from $10.0 million for the three months ended June 30, 2013.  Segment other underwriting expenses increased slightly to $20.9 million for the six months ended June 30, 2014 from $20.5 million for the six months ended June 30, 2013.  These increases were primarily due to the impact of the increase in premiums earned.

International.

The following table presents the underwriting results and ratios for the International segment for the periods indicated.

	Three Months Ended June 30,												Six Months Ended June 30,
(Dollars in millions)	2014			2013			Variance			% Change			2014			2013			Variance			% Change
Gross written premiums	$	466.0		$	354.4		$	111.6			31.5	%	$	794.9		$	654.8		$	140.1			21.4	%
Net written premiums		147.2			162.6			(15.3	)		-9.4	%		288.7			296.3			(7.7	)		-2.6	%
Premiums earned	$	147.7		$	151.1		$	(3.4	)		-2.2	%	$	292.7		$	293.0		$	(0.3	)		-0.1	%
Incurred losses and LAE		88.9			89.9			(1.0	)		-1.1	%		172.5			172.0			0.5			0.3	%
Commission and brokerage		27.4			31.2			(3.7	)		-12.0	%		56.6			59.3			(2.7	)		-4.5	%
Other underwriting expenses		8.1			7.7			0.4			5.6	%		15.9			15.6			0.3			2.1	%
Underwriting gain (loss)	$	23.3		$	22.4		$	0.9			4.1	%	$	47.8		$	46.2		$	1.6			3.4	%
										Point Chg												Point Chg
Loss ratio		60.2	%		59.5	%					0.7			58.9	%		58.7	%					0.2
Commission and brokerage ratio		18.6	%		20.6	%					(2.0	)		19.3	%		20.2	%					(0.9	)
Other underwriting expense ratio		5.4	%		5.1	%					0.3			5.5	%		5.3	%					0.2
Combined ratio		84.2	%		85.2	%					(1.0	)		83.7	%		84.2	%					(0.5	)
(Some amounts may not reconcile due to rounding.)

Premiums.Gross written premiums increased by 31.5% to $466.0 million for the three months ended June 30, 2014 compared to $354.4 million for the three months ended June 30, 2013, primarily due new quota share contracts, partially offset by approximately $23 million of negative impacts from foreign exchange movements quarter over quarter.  Net written premiums decreased by 9.4% to $147.2 million for the three months ended June 30, 2014 compared to $162.6 million for the three months ended June 30, 2013.  The variance of the change in gross written premiums compared to the change in net written premiums is due to a higher utilization of reinsurance related to the new quota share contracts.  Premiums earned decreased 2.2% to $147.7 million for the three months ended June 30, 2014 compared to $151.1 million for the three months ended June 30, 2013.  The change in premiums earned relative to net written premiums is primarily the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.

35

Gross written premiums increased by 21.4% to $794.9 million for the six months ended June 30, 2014 compared to $654.8 million for the six months ended June 30, 2013, primarily due to new quota share contracts, partially offset by approximately $26 million of negative impacts from foreign exchange movements year over year.  Net written premiums decreased by 2.6% to $288.7 million for the six months ended June 30, 2014 compared to $296.3 million for the six months ended June 30, 2013.  The variance of the change in gross written premiums compared to the change in net written premiums is due to a higher utilization of reinsurance related to the new quota share contracts.  Premiums earned decreased 0.1% to $292.7 million for the six months ended June 30, 2014 compared to $293.0 million for the six months ended June 30, 2013.  The change in premiums earned relative to net written premiums is primarily the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.

Incurred Losses and LAE. The following tables present the incurred losses and LAE for the International segment for the periods indicated.

	Three Months Ended June 30,
	Current			Ratio %/				Prior			Ratio %/				Total			Ratio %/
(Dollars in millions)	Year			Pt Change				Years			Pt Change				Incurred			Pt Change
2014
Attritional	$	72.4			49.0	%		$	(0.5	)		-0.3	%		$	71.9			48.7	%
Catastrophes		17.3			11.7	%			(0.4	)		-0.2	%			16.9			11.5	%
Total segment	$	89.7			60.7	%		$	(0.9	)		-0.5	%		$	88.9			60.2	%
2013
Attritional	$	83.2			55.1	%		$	2.4			1.6	%		$	85.7			56.7	%
Catastrophes		2.5			1.7	%			1.7			1.1	%			4.2			2.8	%
Total segment	$	85.7			56.8	%		$	4.1			2.7	%		$	89.9			59.5	%
Variance 2014/2013
Attritional	$	(10.8	)		(6.1	)	pts	$	(2.9	)		(1.9	)	pts	$	(13.8	)		(8.0	)	pts
Catastrophes		14.8			10.0		pts		(2.1	)		(1.3	)	pts		12.7			8.7		pts
Total segment	$	4.0			3.9		pts	$	(5.0	)		(3.2	)	pts	$	(1.0	)		0.7		pts

	Six Months Ended June 30,
	Current			Ratio %/				Prior			Ratio %/				Total			Ratio %/
(Dollars in millions)	Year			Pt Change				Years			Pt Change				Incurred			Pt Change
2014
Attritional	$	157.1			53.7	%		$	(0.2	)		-0.1	%		$	156.9			53.6	%
Catastrophes		17.3			5.9	%			(1.7	)		-0.6	%			15.6			5.3	%
Total segment	$	174.4			59.6	%		$	(1.9	)		-0.7	%		$	172.5			58.9	%
2013
Attritional	$	170.4			58.1	%		$	(1.8	)		-0.6	%		$	168.6			57.5	%
Catastrophes		2.5			0.9	%			0.9			0.3	%			3.4			1.2	%
Total segment	$	172.9			59.0	%		$	(0.9	)		-0.3	%		$	172.0			58.7	%
Variance 2014/2013
Attritional	$	(13.3	)		(4.4	)	pts	$	1.6			0.5		pts	$	(11.7	)		(3.9	)	pts
Catastrophes		14.8			5.0		pts		(2.6	)		(0.9	)	pts		12.2			4.1		pts
Total segment	$	1.5			0.6		pts	$	(1.0	)		(0.4	)	pts	$	0.5			0.2		pts
(Some amounts may not reconcile due to rounding.)

Incurred losses and LAE decreased by 1.1% to $88.9 million for the three months ended June 30, 2014 compared to $89.9 million for the three months ended June 30, 2013, primarily due to a decrease in attritional losses, partially offset by the increase in catastrophe losses. The $17.3 million of current year catastrophe losses for the three months ended June 30, 2014 were due to Japan snowstorm ($10.0 million) and the Chilean earthquake ($7.3 million).  The $2.5 million of current year catastrophe losses were due to the Canadian floods.

36

Incurred losses and LAE increased by 0.3% to $172.5 million for the six months ended June 30, 2014 compared to $172.0 million for the six months ended June 30, 2013, primarily due to the increase in catastrophe losses, partially offset by a decrease in attritional losses. The $17.3 million of current year catastrophe losses for the six months ended June 30, 2014 were due to Japan snowstorm ($10.0 million) and the Chilean earthquake ($7.3 million).  The $2.5 million of current year catastrophe losses were due to the Canadian floods.

Segment Expenses.Commission and brokerage decreased 12.0% to $27.4 million for the three months ended June 30, 2014 compared to $31.2 million for the three months ended June 30, 2013.  Commission and brokerage decreased 4.5% to $56.6 million for the six months ended June 30, 2014 compared to $59.3 million for the six months ended June 30, 2013. This decrease was primarily due to the new quota share contracts, which have lower net commission rates.

Segment other underwriting expenses slightly increased to $8.1 million for the three months ended June 30, 2014 compared to $7.7 million for the three months ended June 30, 2013.  Segment other underwriting expenses slightly increased to $15.9 million for the six months ended June 30, 2014 compared to $15.6 million for the six months ended June 30, 2013.

Insurance.

The following table presents the underwriting results and ratios for the Insurance segment for the periods indicated.

	Three Months Ended June 30,												Six Months Ended June 30,
(Dollars in millions)	2014			2013			Variance			% Change			2014			2013			Variance			% Change
Gross written premiums	$	305.7		$	307.6		$	(1.9	)		-0.6	%	$	531.0		$	556.1		$	(25.1	)		-4.5	%
Net written premiums		130.4			153.2			(22.8	)		-14.9	%		237.2			278.0			(40.8	)		-14.7	%
Premiums earned	$	126.7		$	139.6		$	(12.9	)		-9.2	%	$	234.0		$	248.8		$	(14.8	)		-6.0	%
Incurred losses and LAE		103.0			106.9			(4.0	)		-3.7	%		181.4			192.3			(10.8	)		-5.6	%
Commission and brokerage		4.5			5.7			(1.1	)		-20.1	%		11.3			7.6			3.8			49.8	%
Other underwriting expenses		27.6			26.6			1.0			3.7	%		49.5			51.7			(2.1	)		-4.1	%
Underwriting gain (loss)	$	(8.4	)	$	0.4		$	(8.8	)	NM			$	(8.3	)	$	(2.7	)	$	(5.6	)		207.2	%
										Point Chg												Point Chg
Loss ratio		81.2	%		76.6	%					4.6			77.5	%		77.3	%					0.2
Commission and brokerage ratio		3.6	%		4.1	%					(0.5	)		4.8	%		3.0	%					1.8
Other underwriting expense ratio		21.8	%		19.0	%					2.8			21.3	%		20.8	%					0.5
Combined ratio		106.6	%		99.7	%					6.9			103.6	%		101.1	%					2.5
(NM, not meaningful)
(Some amounts may not reconcile due to rounding.)

Premiums. Gross written premiums decreased by 0.6% to $305.7 million for the three months ended June 30, 2014 compared to $307.6 million for the three months ended June 30, 2013.  This decrease was primarily driven by a decline in crop business.  Net written premiums decreased by 14.9% to $130.4 million for the three months ended June 30, 2014 compared to $153.2 million for the three months ended June 30, 2013.  The variance in the change of gross written premiums compared to the change in net written premiums is due to the impact of changes to affiliated reinsurance agreements.  Premiums earned decreased 9.2% to $126.7 million for the three months ended June 30, 2014 compared to $139.6 million for the three months ended June 30, 2013.  The change in premiums earned relative to net written premiums is the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.

37

Gross written premiums decreased by 4.5% to $531.0 million for the six months ended June 30, 2014 compared to $556.1 million for the six months ended June 30, 2013.  This decrease was primarily driven by a decline in crop business.  Net written premiums decreased by 14.7% to $237.2 million for the six months ended June 30, 2014 compared to $278.0 million for the six months ended June 30, 2013.  The variance in the change of gross written premiums compared to the change in net written premiums is due to the impact of changes to affiliated reinsurance agreements.  Premiums earned decreased 6.0% to $234.0 million for the six months ended June 30, 2014 compared to $248.8 million for the six months ended June 30, 2013.  The change in premiums earned relative to net written premiums is the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.

Incurred Losses and LAE.The following tables present the incurred losses and LAE for the Insurance segment for the periods indicated.

	Three Months Ended June 30,
	Current			Ratio %/				Prior			Ratio %/				Total			Ratio %/
(Dollars in millions)	Year			Pt Change				Years			Pt Change				Incurred			Pt Change
2014
Attritional	$	102.8			81.1	%		$	0.2			0.1	%		$	103.0			81.2	%
Catastrophes		-			0.0	%			(0.1	)		0.0	%			(0.1	)		0.0	%
Total segment	$	102.8			81.1	%		$	0.1			0.1	%		$	103.0			81.2	%
2013
Attritional	$	103.3			74.1	%		$	3.5			2.5	%		$	106.8			76.6	%
Catastrophes		-			0.0	%			0.1			0.0	%			0.1			0.0	%
Total segment	$	103.3			74.1	%		$	3.6			2.5	%		$	106.9			76.6	%
Variance 2014/2013
Attritional	$	(0.5	)		7.0		pts	$	(3.3	)		(2.4	)	pts	$	(3.8	)		4.6		pts
Catastrophes		-			-		pts		(0.2	)		-		pts		(0.2	)		-		pts
Total segment	$	(0.5	)		7.0		pts	$	(3.5	)		(2.4	)	pts	$	(4.0	)		4.6		pts

	Six Months Ended June 30,
	Current			Ratio %/				Prior			Ratio %/				Total			Ratio %/
(Dollars in millions)	Year			Pt Change				Years			Pt Change				Incurred			Pt Change
2014
Attritional	$	178.8			76.4	%		$	2.6			1.1	%		$	181.4			77.5	%
Catastrophes		-			0.0	%			-			0.0	%			-			0.0	%
Total segment	$	178.8			76.4	%		$	2.6			1.1	%		$	181.4			77.5	%
2013
Attritional	$	183.8			73.9	%		$	8.4			3.4	%		$	192.2			77.3	%
Catastrophes		-			0.0	%			-			0.0	%			-			0.0	%
Total segment	$	183.8			73.9	%		$	8.4			3.4	%		$	192.3			77.3	%
Variance 2014/2013
Attritional	$	(5.0	)		2.5		pts	$	(5.8	)		(2.3	)	pts	$	(10.8	)		0.2		pts
Catastrophes		-			-		pts		-			-		pts		-			-		pts
Total segment	$	(5.0	)		2.5		pts	$	(5.8	)		(2.3	)	pts	$	(10.8	)		0.2		pts
(Some amounts may not reconcile due to rounding.)

Incurred losses and LAE decreased by 3.7% to $103.0 million for the three months ended June 30, 2014 compared to $106.9 million for the three months ended June 30, 2013, mainly due to an improvement of $3.3 million in prior year development of attritional losses. There were no current year catastrophe losses for the three months ended June 30, 2014 and 2013.

Incurred losses and LAE decreased by 5.6% to $181.4 million for the six months ended June 30, 2014 compared to $192.3 million for the six months ended June 30, 2013, mainly due to an improvement of $5.8 million on prior year development of attritional losses and lower current year attritional losses due to the impact of the decline in premiums earned.  There were no current year catastrophe losses for the six months ended June 30, 2014 and 2013.

38

Segment Expenses.  Commission and brokerage decreased slightly to $4.5 million for the three months ended June 30, 2014 compared to $5.7 million for the three months ended June 30, 2013.  Commission and brokerage increased to $11.3 million for the six months ended June 30, 2014 compared to $7.6 million for the six months ended June 30, 2013.  The increase for the year was primarily driven by the shift in the mix of premium away from crop business, which carries a lower commission rate than other insurance lines.

Segment other underwriting expenses increased slightly to $27.6 million for the three months ended June 30, 2014 compared to $26.6 million for the three months ended June 30, 2013.  Segment other underwriting expenses decreased to $49.5 million for the six months ended June 30, 2014 compared to $51.7 million for the six months ended June 30, 2013 due to the impact of the decline in premiums earned.

Market Sensitive Instruments.

The SEC’s Financial Reporting Release #48 requires registrants to clarify and expand upon the existing financial statement disclosure requirements for derivative financial instruments, derivative commodity instruments and other financial instruments (collectively, “market sensitive instruments”).  We do not generally enter into market sensitive instruments for trading purposes.

Our current investment strategy seeks to maximize after-tax income through a high quality, diversified, taxable and tax-preferenced fixed maturity portfolio, while maintaining an adequate level of liquidity.  Our mix of taxable and tax-preferenced investments is adjusted periodically, consistent with our current and projected operating results, market conditions and our tax position.  The fixed maturity securities in the investment portfolio are comprised of non-trading available for sale securities.  Additionally, we have invested in equity securities.

The overall investment strategy considers the scope of present and anticipated Company operations.  In particular, estimates of the financial impact resulting from non-investment asset and liability transactions, together with our capital structure and other factors, are used to develop a net liability analysis.  This analysis includes estimated payout characteristics for which our investments provide liquidity.  This analysis is considered in the development of specific investment strategies for asset allocation, duration and credit quality.  The change in overall market sensitive risk exposure principally reflects the asset changes that took place during the period.

Interest Rate Risk.  Our $10.0 billion investment portfolio, at June 30, 2014, is principally comprised of fixed maturity securities, which are generally subject to interest rate risk and some foreign currency exchange rate risk, and some equity securities, which are subject to price fluctuations and some foreign exchange rate risk.  The overall economic impact of the foreign exchange risks on the investment portfolio is partially mitigated by changes in the dollar value of foreign currency denominated liabilities and their associated income statement impact.

Interest rate risk is the potential change in value of the fixed maturity securities portfolio, including short-term investments, from a change in market interest rates.  In a declining interest rate environment, it includes prepayment risk on the $697.0 million of mortgage-backed securities in the $5,900.4 million fixed maturity portfolio.  Prepayment risk results from potential accelerated principal payments that shorten the average life and thus the expected yield of the security.

39

The table below display the potential impact of market value fluctuations and after-tax unrealized appreciation on our fixed maturity portfolio (including $673.4 million of short-term investments) for the periods indicated based on upward and downward parallel and immediate 100 and 200 basis point shifts in interest rates.  For legal entities with a U.S. dollar functional currency, this modeling was performed on each security individually.  To generate appropriate price estimates for mortgage-backed securities, changes in prepayment expectations under different interest rate environments were taken into account.  For legal entities with non-U.S. dollar functional currency, the effective duration of the involved portfolio of securities was used as a proxy for the market value change under the various interest rate change scenarios.

	Impact of Interest Rate Shift in Basis Points
	At June 30, 2014
(Dollars in millions)	-200			-100			0			100			200
Total Market/Fair Value	$	6,883.5		$	6,731.9		$	6,573.8		$	6,407.7		$	6,236.7
Market/Fair Value Change from Base (%)		4.7	%		2.4	%		0.0	%		-2.5	%		-5.1	%
Change in Unrealized Appreciation
After-tax from Base ($)	$	201.3		$	102.8		$	-		$	(107.9	)	$	(219.1	)

We had $7,657.6 million and $7,653.2 million of gross reserves for losses and LAE as of June 30, 2014 and December 31, 2013, respectively.  These amounts are recorded at their nominal value, as opposed to present value, which would reflect a discount adjustment to reflect the time value of money.  Since losses are paid out over a period of time, the present value of the reserves is less than the nominal value.  As interest rates rise, the present value of the reserves decreases and, conversely, as interest rates decline, the present value increases.  These movements are the opposite of the interest rate impacts on the fair value of investments.  While the difference between present value and nominal value is not reflected in our financial statements, our financial results will include investment income over time from the investment portfolio until the claims are paid.  Our loss and loss reserve obligations have an expected duration that is reasonably consistent with our fixed income portfolio.

Equity Risk.  Equity risk is the potential change in fair and/or market value of the common stock and preferred stock portfolios arising from changing prices.  Our equity investments consist of a diversified portfolio of individual securities.  The primary objective of the equity portfolio is to obtain greater total return relative to bonds over time through market appreciation and income.

The table below displays the impact on fair/market value and after-tax change in fair/market value of a 10% and 20% change in equity prices up and down for the periods indicated.

	Impact of Percentage Change in Equity Fair/Market Values
	At June 30, 2014
(Dollars in millions)	-20%			-10%			0%		10%		20%
Fair/Market Value of the Equity Portfolio	$	998.2		$	1,123.0		$	1,247.8	$	1,372.6	$	1,497.4
After-tax Change in Fair/Market Value		(162.2	)		(81.1	)		-		81.1		162.2

Foreign Exchange Risk.  Foreign currency risk is the potential change in value, income and cash flow arising from adverse changes in foreign currency exchange rates.  Each of our non-U.S. (“foreign”) operations maintains capital in the currency of the country of its geographic location consistent with local regulatory guidelines.  Each foreign operation may conduct business in its local currency, as well as the currency of other countries in which it operates.  The primary foreign currency exposures for these foreign operations are the Singapore and Canadian Dollars.  We mitigate foreign exchange exposure by generally matching the currency and duration of our assets to our corresponding operating liabilities.  In accordance with FASB guidance, we translate the assets, liabilities and income of non-U.S. dollar functional currency legal entities to the U.S. dollar.  This translation amount is reported as a component of other comprehensive income.  As of June 30, 2014, there has been no material change in exposure to foreign exchange rates as compared to December 31, 2013.

40

SAFE HARBOR DISCLOSURE

This report 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 federal securities laws.  In some cases, these statements can be identified by the use of forward-looking words such as “may”, “will”, “should”, “could”, “anticipate”, “estimate”, “expect”, “plan”, “believe”, “predict”, “potential” and “intend”.  Forward-looking statements contained in this report include information regarding our reserves for losses and LAE, the adequacy of our provision for uncollectible balances, estimates of our catastrophe exposure, the effects of catastrophic events on our financial statements and the ability of our subsidiaries to pay dividends.  Forward-looking statements only reflect our expectations and are not guarantees of performance.  These statements involve risks, uncertainties and assumptions.  Actual events or results may differ materially from our expectations.  Important factors that could cause our actual events or results to be materially different from our expectations include those discussed under the caption “Risk Factors” in our most recently filed Annual Report on Form 10-K, Part 1, Item 1A.  We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market Risk Instruments.  See “Market Sensitive Instruments” in PART I – ITEM 2.

ITEM 4.    CONTROLS AND PROCEDURES

As of the end of the period covered by this report, our management carried out an evaluation, with the participation of the Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)).  Based on their evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act are recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.  Our management, with the participation of the Chief Executive Officer and Chief Financial Officer, also conducted an evaluation of our internal control over financial reporting to determine whether any changes occurred during the quarter covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.  Based on that evaluation, there has been no such change during the quarter covered by this report.

PART II

ITEM 1.    LEGAL PROCEEDINGS

In the ordinary course of business, the Company is involved in lawsuits, arbitrations and other formal and informal dispute resolution procedures, the outcomes of which will determine the Company’s rights and obligations under insurance and reinsurance agreements.  In some disputes, the Company seeks to enforce its rights under an agreement or to collect funds owing to it.  In other matters, the Company is resisting attempts by others to collect funds or enforce alleged rights.  These disputes arise from time to time and are ultimately resolved through both informal and formal means, including negotiated resolution, arbitration and litigation.  In all such matters, the Company believes that its positions are legally and commercially reasonable.  The Company considers the statuses of these proceedings when determining its reserves for unpaid loss and loss adjustment expenses.

Aside from litigation and arbitrations related to these insurance and reinsurance agreements, the Company is not a party to any other material litigation or arbitration.

41

ITEM 1A.  RISK FACTORS

No material changes.

ITEM 2.    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3.    DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.    MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.    OTHER INFORMATION

None.

ITEM 6.    EXHIBITS

Exhibit Index:
Exhibit No.	Description
31.1	Section 302 Certification of Dominic J. Addesso
31.2	Section 302 Certification of Craig Howie
32.1	Section 906 Certification of Dominic J. Addesso and Craig Howie
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase
101.LAB	XBRL Taxonomy Extension Labels Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase

42

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/ CRAIG HOWIE
	Craig Howie
	Executive Vice President and
		Chief Financial Officer
	(Duly Authorized Officer and Principal Financial Officer)
Dated: August 14, 2014

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Dominic J. Addesso, certify that:

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:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

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):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 14, 2014

/S/ DOMINIC J. ADDESSO
Dominic J. Addesso
Chairman, President and
	Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Craig Howie, certify that:

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:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

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):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 14, 2014

/S/ CRAIG HOWIE
Craig Howie
Executive Vice President and
	Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATIONS PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 of Everest Reinsurance Holdings, Inc., a corporation organized under the laws of Delaware (the “Company”), filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certify, pursuant to 18 U.S.C. ss. 1350, as enacted by section 906 of the Sarbanes-Oxley Act of 2002, that:

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.

August 14, 2014

/S/ DOMINIC J. ADDESSO
Dominic J. Addesso
Chairman, President and
	Chief Executive Officer
/S/ CRAIG HOWIE
Craig Howie
Executive Vice President and
	Chief Financial Officer

XML

Investments (Summary Of Aggregate Market Value And Gross Unrealized Depreciation Of Fixed Maturity And Equity Securities, By Security Type) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Less than 12 months, Market Value	$ 621,262	$ 1,324,834
Fixed maturity securities, Less than 12 months, Gross Unrealized Depreciation	(5,022)	(44,870)
Fixed maturity securities, Greater than 12 months, Market Value	798,094	332,191
Fixed maturity securities, Greater than 12 months, Gross Unrealized Depreciation	(21,093)	(19,687)
Available-for-sale Securities, Market Value, Total	1,419,356	1,657,025
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(26,115)	(64,557)
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Less than 12 months, Market Value	621,247	1,324,821
Fixed maturity securities, Less than 12 months, Gross Unrealized Depreciation	(5,022)	(44,868)
Fixed maturity securities, Greater than 12 months, Market Value	798,094	332,191
Fixed maturity securities, Greater than 12 months, Gross Unrealized Depreciation	(21,093)	(19,687)
Available-for-sale Securities, Market Value, Total	1,419,341	1,657,012
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(26,115)	(64,555)
U.S. Treasury Securities And Obligations Of U.S. Government Agencies And Corporations [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Less than 12 months, Market Value	105,986	39,274
Fixed maturity securities, Less than 12 months, Gross Unrealized Depreciation	(45)	(302)
Fixed maturity securities, Greater than 12 months, Market Value	24,597	8,751
Fixed maturity securities, Greater than 12 months, Gross Unrealized Depreciation	(590)	(644)
Available-for-sale Securities, Market Value, Total	130,583	48,025
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(635)	(946)
Obligation Of U.S. States And Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Less than 12 months, Market Value		92,760
Fixed maturity securities, Less than 12 months, Gross Unrealized Depreciation		(4,852)
Fixed maturity securities, Greater than 12 months, Market Value	92,739	39,689
Fixed maturity securities, Greater than 12 months, Gross Unrealized Depreciation	(2,050)	(4,170)
Available-for-sale Securities, Market Value, Total	92,739	132,449
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(2,050)	(9,022)
Corporate Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Less than 12 months, Market Value	345,912	388,721
Fixed maturity securities, Less than 12 months, Gross Unrealized Depreciation	(2,814)	(8,981)
Fixed maturity securities, Greater than 12 months, Market Value	190,310	56,156
Fixed maturity securities, Greater than 12 months, Gross Unrealized Depreciation	(4,567)	(3,512)
Available-for-sale Securities, Market Value, Total	536,222	444,877
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(7,381)	(12,493)
Asset-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Less than 12 months, Market Value	12,591
Fixed maturity securities, Less than 12 months, Gross Unrealized Depreciation	(7)
Fixed maturity securities, Greater than 12 months, Market Value
Fixed maturity securities, Greater than 12 months, Gross Unrealized Depreciation
Available-for-sale Securities, Market Value, Total	12,591
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(7)
Commercial Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Less than 12 months, Market Value
Fixed maturity securities, Less than 12 months, Gross Unrealized Depreciation
Fixed maturity securities, Greater than 12 months, Market Value
Fixed maturity securities, Greater than 12 months, Gross Unrealized Depreciation
Available-for-sale Securities, Market Value, Total
Available-for-sale Securities, Gross Unrealized Depreciation, Total
Agency Residential Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Less than 12 months, Market Value	56,079	381,149
Fixed maturity securities, Less than 12 months, Gross Unrealized Depreciation	(235)	(14,084)
Fixed maturity securities, Greater than 12 months, Market Value	286,429	131,504
Fixed maturity securities, Greater than 12 months, Gross Unrealized Depreciation	(6,158)	(4,437)
Available-for-sale Securities, Market Value, Total	342,508	512,653
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(6,393)	(18,521)
Non-Agency Residential Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Greater than 12 months, Market Value		202
Fixed maturity securities, Greater than 12 months, Gross Unrealized Depreciation		(33)
Available-for-sale Securities, Market Value, Total		202
Available-for-sale Securities, Gross Unrealized Depreciation, Total		(33)
Foreign Government Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Less than 12 months, Market Value	32,337	100,984
Fixed maturity securities, Less than 12 months, Gross Unrealized Depreciation	(711)	(5,255)
Fixed maturity securities, Greater than 12 months, Market Value	65,825	29,174
Fixed maturity securities, Greater than 12 months, Gross Unrealized Depreciation	(3,227)	(2,686)
Available-for-sale Securities, Market Value, Total	98,162	130,158
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(3,938)	(7,941)
Foreign Corporate Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Less than 12 months, Market Value	68,342	321,933
Fixed maturity securities, Less than 12 months, Gross Unrealized Depreciation	(1,210)	(11,394)
Fixed maturity securities, Greater than 12 months, Market Value	138,194	66,715
Fixed maturity securities, Greater than 12 months, Gross Unrealized Depreciation	(4,501)	(4,205)
Available-for-sale Securities, Market Value, Total	206,536	388,648
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(5,711)	(15,599)
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Less than 12 months, Market Value	15	13
Fixed maturity securities, Less than 12 months, Gross Unrealized Depreciation		(2)
Available-for-sale Securities, Market Value, Total	15	13
Available-for-sale Securities, Gross Unrealized Depreciation, Total		$ (2)

XML

Reinsurance And Trust Agreements (Details) (USD $) In Thousands, unless otherwise specified	0 Months Ended
	Apr. 24, 2014 item	Jun. 30, 2014
Effects of Reinsurance [Line Items]
Amount on deposit in trust accounts		$ 213,335
Number of collateralized reinsurance agreements	2
Catastrophe reinsurance bonds, funded amount	450,000
Catastrophe Reinsurance Agreement 1 [Member]
Effects of Reinsurance [Line Items]
Reinsurance coverage amount	250,000
Catastrophe Reinsurance Agreement 2 [Member]
Effects of Reinsurance [Line Items]
Reinsurance coverage amount	$ 200,000

XML

Other Comprehensive Income (Loss) (Components Of Comprehensive Income (Loss) In The Consolidated Statements Of Operations) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Other Comprehensive Income (Loss) [Abstract]
Unrealized appreciation (depreciation) ("URA(D)") of securities - temporary, Before Tax	$ 29,577	$ (120,591)	$ 61,573	$ (129,119)
URA(D) on securities - OTTI, Before Tax		(302)		(399)
Reclassification of net realized losses (gains) included in net income (loss), Before Tax	1,127	(244)	3,124	(2,333)
Foreign currency translation adjustments, Before Tax	10,340	570	(1,715)	(11,116)
Reclassification of amortization of net gain (loss) included in net income (loss), Before Tax	1,185	2,070	2,371	4,140
Total other comprehensive income (loss), Before Tax	42,229	(118,497)	65,353	(138,827)
Unrealized appreciation (depreciation) ("URA(D)") of securities - temporary, Tax Effect	(10,475)	42,207	(21,674)	45,192
URA(D) on securities - OTTI, Tax Effect		106		140
Reclassification of net realized losses (gains) included in net income (loss), Tax Effect	(270)	85	(969)	816
Foreign currency translation adjustments, Tax Effect	(3,619)	(199)	600	3,891
Reclassification of amortization of net gain (loss) included in net income (loss), Tax Effect	(415)	(725)	(830)	(1,449)
Total other comprehensive income (loss), Tax Effect	(14,779)	41,474	(22,873)	48,590
Unrealized appreciation (depreciation) ("URA(D)") of securities - temporary, Net of Tax	19,102	(78,385)	39,899	(83,928)
URA(D) of securities - OTTI, Net of Tax		(196)		(259)
Reclassification of net realized losses (gains) included in net income (loss), Net of Tax	857	(158)	2,155	(1,516)
Foreign currency translation adjustments, Net of Tax	6,721	371	(1,115)	(7,225)
Benefit plan actuarial net gain (loss), Net of Tax
Reclassification adjustment for amortization of net (gain) loss included in net income (loss)	770	1,345	1,541	2,691
Total other comprehensive income (loss), net of tax	$ 27,450	$ (77,023)	$ 42,480	$ (90,237)

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Related-Party Transactions (Expenses Incurred By Holdings From Services Provided By Affiliated Company) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Related-Party Transactions [Abstract]
Expenses incurred	$ 17,676	$ 18,214	$ 33,519	$ 36,769

XML

Senior Notes (Narrative) (Details) (USD $)		6 Months Ended
	May 24, 2013	Jun. 30, 2014 Senior Notes 4.868% [Member]
Debt Instrument [Line Items]
Date issued		Jun. 05, 2014
Principal amounts	$ 329,897,000	$ 400,000,000
Debt maturity term		30 years
Debt instrument, stated interest rate		4.868%
Maturity Date		Jun. 01, 2044
Capitalized cost		$ 4,300,000

XML

Fair Value (Activity Under Level 3, Fair Value Measurements Using Significant Unobservable Inputs By Asset Type) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 3,521	$ 6,483	$ 4,018	$ 45,673
Total gains or (losses) (realized/unrealized), Included in earnings	55	(532)	75	(633)
Total gains or (losses) (realized/unrealized), Included in other comprehensive income (loss)	8	(462)	73	(776)
Purchases, issuances and settlements	(1,052)	1,870	(1,634)	2,746
Transfers in and/or (out) of Level 3		5,021		(34,630)
Ending balance	2,532	12,380	2,532	12,380
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
Asset-Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	3,044	4,686	3,533	4,849
Total gains or (losses) (realized/unrealized), Included in earnings	38	115	56	16
Total gains or (losses) (realized/unrealized), Included in other comprehensive income (loss)	28	(139)	93	(329)
Purchases, issuances and settlements	(582)	(146)	(1,154)	(20)
Transfers in and/or (out) of Level 3		316		316
Ending balance	2,528	4,832	2,528	4,832
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
Foreign Corporate Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	473	1,792	481	11,421
Total gains or (losses) (realized/unrealized), Included in earnings	17	(649)	18	(651)
Total gains or (losses) (realized/unrealized), Included in other comprehensive income (loss)	(20)	(298)	(20)	(422)
Purchases, issuances and settlements	(470)	2,087	(479)	2,837
Transfers in and/or (out) of Level 3		4,293		(5,960)
Ending balance		7,225		7,225
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
Non-Agency Residential Mortgage-Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	4	5	4	5
Total gains or (losses) (realized/unrealized), Included in earnings		2	1	2
Total gains or (losses) (realized/unrealized), Included in other comprehensive income (loss)		(25)		(25)
Purchases, issuances and settlements		(71)	(1)	(71)
Transfers in and/or (out) of Level 3		412		412
Ending balance	4	323	4	323
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
Agency Residential Mortgage-Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance				29,398
Transfers in and/or (out) of Level 3				$ (29,398)

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Related-Party Transactions (Tables)

6 Months Ended

Jun. 30, 2014

Related-Party Transactions [Abstract]

Amendments To The Share Repurchase Program For The Common Shares Approved For Repurchase

	Common Shares
	Authorized for
Amendment Date	Repurchase
(Dollars in thousands)
09/21/2004	5,000,000
07/21/2008	5,000,000
02/24/2010	5,000,000
02/22/2012	5,000,000
05/15/2013	5,000,000
	25,000,000

Purchase Price For Common Shares

(Dollars in thousands)
Total purchase price	$	835,371

Dividends Received On Common Shares Reported As Net Investment Income

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Dividends received	$	7,290	$	4,665	$	14,580	$	9,331

Expenses Incurred By Holdings From Services Provided By Affiliated Company

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Expenses incurred	$	17,676	$	18,214	$	33,519	$	36,769

Affiliated Quota Share Reinsurance Agreements For All New And Renewal Business For The Indicated Coverage Period

(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
01/01/2011-12/31/2011		Everest Re		50.0	%	Bermuda Re	property / casualty business		150,000			300,000
01/01/2012		Everest Re		50.0	%	Bermuda Re	property / casualty business		100,000			200,000
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	(3)		-
01/01/2011-12/31/2011		Everest Re- Canadian Branch		60.0	%	Bermuda Re	property business		350,000	(3)		-
01/01/2012-12/31/2012		Everest Re- Canadian Branch		75.0	%	Bermuda Re	property / casualty business		206,250	(3)		412,500	(3)
01/01/2013-12/31/2013		Everest Re- Canadian Branch		75.0	%	Bermuda Re	property / casualty business		150,000	(3)		412,500	(3)
01/01/2014		Everest Re- Canadian Branch		75.0	%	Bermuda Re	property / casualty business		262,500	(3)		412,500	(3)
01/01/2012		Everest Canada		80.0	%	Everest Re- Canadian Branch	property business		-			-
(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.
(3)	Amounts shown are Canadian dollars.

Liability Limits For Any Losses Per One Occurrence

	Liability Limits
(Dollars in thousands)	Exceeding		Not to Exceed
Losses per one occurrence	$	100,000	$	150,000

Loss Portfolio Transfer Reinsurance Agreements, Net Insurance Exposures And Reserves Were Transferred To An Affiliate

(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

Premiums And Losses Ceded By The Company To Affiliate

	Three Months Ended				Six Months Ended
Bermuda Re	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Ceded written premiums	$	524,057	$	509,451	$	1,042,074	$	986,582
Ceded earned premiums		535,287		475,419		1,015,100		929,801
Ceded losses and LAE (a)		296,322		266,455		534,823		497,986

	Three Months Ended					Six Months Ended
Everest International	June 30,					June 30,
(Dollars in thousands)	2014		2013			2014		2013
Ceded written premiums	$	203	$	269		$	88	$	134
Ceded earned premiums		348		353			274		414
Ceded losses and LAE		260		(643	)		2,144		(603	)

	Three Months Ended				Six Months Ended
Everest Canada	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Assumed written premiums	$	11,215	$	6,287	$	15,225	$	9,125
Assumed earned premiums		5,268		3,619		9,956		7,389
Assumed losses and LAE		3,091		2,048		6,383		4,274

(a) Ceded losses and LAE include the Mt. McKinley loss portfolio transfer that constitutes losses ceded under retroactive reinsurance and therefore, in accordance with FASB guidance, a deferred gain on retroactive reinsurance is reflected in other expenses on the consolidated statements of operations and comprehensive income (loss).

	Three Months Ended				Six Months Ended
Mt. Logan Re	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Ceded written premiums	$	20,228	$	-	$	48,594	$	-
Ceded earned premiums		22,680		-		40,517		-
Ceded losses and LAE		9,648		-		14,791		-
Assumed written premiums		-		-		9,919		-
Assumed earned premiums		2,605		-		4,711		-
Assumed losses and LAE		-		-		-		-

XML

Related-Party Transactions (Loss Portfolio Transfer Reinsurance Agreements, Net Insurance Exposures And Reserves Were Transferred To An Affiliate) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014
Mt. McKinley [Member]
Related Party Transaction [Line Items]
Effective Date	Sep. 19, 2000
Assuming Company	Bermuda Re
% of Business Transfer	100.00%
Covered Period of Transfer	All years
Everest Re (Belgium Branch) [Member]
Related Party Transaction [Line Items]
Effective Date	Oct. 01, 2001
Assuming Company	Bermuda Re
% of Business Transfer	100.00%
Covered Period of Transfer	All years
Everest Re [Member]
Related Party Transaction [Line Items]
Effective Date	Oct. 01, 2008
Assuming Company	Bermuda Re
Amount of Business Transfer	$ 747,022
Covered Period of Transfer	01/01/2002-12/31/2007

XML

Senior Notes (Schedule Of Interest Expense Incurred In Connection With Senior Notes) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Senior Notes [Abstract]
Interest expense incurred	$ 4,741	$ 3,388	$ 8,129	$ 6,775

XML

Related-Party Transactions (Affiliated Quota Share Reinsurance Agreements For All New And Renewal Business For The Indicated Coverage Period) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014
Everest Re [Member]
Related Party Transaction [Line Items]
Assuming Company	Bermuda Re
Everest Re [Member] | 01/01/2002-12/31/2002 [Member] | Bermuda Re [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re
Percent Ceded	20.00%
Assuming Company	Bermuda Re
Type of Business	property / casualty business
Everest Re [Member] | 01/01/2003-12/31/2003 [Member] | Bermuda Re [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re
Percent Ceded	25.00%
Assuming Company	Bermuda Re
Type of Business	property / casualty business
Everest Re [Member] | 01/01/2004-12/31/2005 [Member] | Bermuda Re [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re
Percent Ceded	22.50%
Assuming Company	Bermuda Re
Type of Business	property / casualty business
Everest Re [Member] | 01/01/2004-12/31/2005 [Member] | Everest International [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re
Percent Ceded	2.50%
Assuming Company	Everest International
Type of Business	property / casualty business
Everest Re [Member] | 01/01/2006-12/31/2006 [Member] | Bermuda Re [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re
Percent Ceded	18.00%
Assuming Company	Bermuda Re
Type of Business	property business
Single Occurrence Limit	$ 125,000	[1]
Everest Re [Member] | 01/01/2006-12/31/2006 [Member] | Everest International [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re
Percent Ceded	2.00%
Assuming Company	Everest International
Type of Business	property business
Everest Re [Member] | 01/01/2006-12/31/2007 [Member] | Bermuda Re [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re
Percent Ceded	31.50%
Assuming Company	Bermuda Re
Type of Business	casualty business
Everest Re [Member] | 01/01/2006-12/31/2007 [Member] | Everest International [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re
Percent Ceded	3.50%
Assuming Company	Everest International
Type of Business	casualty business
Everest Re [Member] | 01/01/2007-12/31/2007 [Member] | Bermuda Re [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re
Percent Ceded	22.50%
Assuming Company	Bermuda Re
Type of Business	property business
Single Occurrence Limit	130,000	[1]
Everest Re [Member] | 01/01/2007-12/31/2007 [Member] | Everest International [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re
Percent Ceded	2.50%
Assuming Company	Everest International
Type of Business	property business
Everest Re [Member] | 01/01/2008-12/31/2008 [Member] | Bermuda Re [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re
Percent Ceded	36.00%
Assuming Company	Bermuda Re
Type of Business	property / casualty business
Single Occurrence Limit	130,000	[1]
Aggregate Limit	275,000	[2]
Everest Re [Member] | 01/01/2008-12/31/2008 [Member] | Everest International [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re
Percent Ceded	4.00%
Assuming Company	Everest International
Type of Business	property / casualty business
Everest Re [Member] | 01/01/2009-12/31/2009 [Member] | Bermuda Re [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re
Percent Ceded	36.00%
Assuming Company	Bermuda Re
Type of Business	property / casualty business
Single Occurrence Limit	150,000	[1]
Aggregate Limit	325,000	[2]
Everest Re [Member] | 01/01/2009-12/31/2009 [Member] | Everest International [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re
Percent Ceded	8.00%
Assuming Company	Everest International
Type of Business	property / casualty business
Everest Re [Member] | 01/01/2010-12/31/2010 [Member] | Bermuda Re [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re
Percent Ceded	44.00%
Assuming Company	Bermuda Re
Type of Business	property / casualty business
Single Occurrence Limit	150,000
Aggregate Limit	325,000
Everest Re [Member] | 01/01/2011 -12/31/2011 [Member] | Bermuda Re [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re
Percent Ceded	50.00%
Assuming Company	Bermuda Re
Type of Business	property / casualty business
Single Occurrence Limit	150,000
Aggregate Limit	300,000
Everest Re [Member] | 01/01/2012 [Member] | Bermuda Re [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re
Percent Ceded	50.00%
Assuming Company	Bermuda Re
Type of Business	property / casualty business
Single Occurrence Limit	100,000
Aggregate Limit	200,000
Everest Re- Canadian Branch [Member] | 01/01/2010-12/31/2010 [Member] | Bermuda Re [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re- Canadian Branch
Percent Ceded	60.00%
Assuming Company	Bermuda Re
Type of Business	property business
Single Occurrence Limit	350,000	[3]
Everest Re- Canadian Branch [Member] | 01/01/2011 -12/31/2011 [Member] | Bermuda Re [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re- Canadian Branch
Percent Ceded	60.00%
Assuming Company	Bermuda Re
Type of Business	property business
Single Occurrence Limit	350,000	[3]
Everest Re- Canadian Branch [Member] | 01/01/2012 [Member] | Everest Canada [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Canada
Percent Ceded	80.00%
Assuming Company	Everest Re- Canadian Branch
Type of Business	property business
Everest Re- Canadian Branch [Member] | 01/01/2003-12/31/2006 [Member] | Bermuda Re [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re- Canadian Branch
Percent Ceded	50.00%
Assuming Company	Bermuda Re
Type of Business	property business
Everest Re- Canadian Branch [Member] | 01/01/2007-12/31/2009 [Member] | Bermuda Re [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re- Canadian Branch
Percent Ceded	60.00%
Assuming Company	Bermuda Re
Type of Business	property business
Everest Re- Canadian Branch [Member] | 01/01/2012 -12/31/2012 [Member] | Bermuda Re [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re- Canadian Branch
Percent Ceded	75.00%
Assuming Company	Bermuda Re
Type of Business	property / casualty business
Single Occurrence Limit	206,250	[3]
Aggregate Limit	412,500	[3]
Everest Re- Canadian Branch [Member] | 01/01/2013 -12/31/2013 [Member] | Bermuda Re [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re- Canadian Branch
Percent Ceded	75.00%
Assuming Company	Bermuda Re
Type of Business	property / casualty business
Single Occurrence Limit	150,000	[3]
Aggregate Limit	412,500	[3]
Everest Re- Canadian Branch [Member] | 01/01/2014 [Member] | Bermuda Re [Member]
Related Party Transaction [Line Items]
Ceding Company	Everest Re- Canadian Branch
Percent Ceded	75.00%
Assuming Company	Bermuda Re
Type of Business	property / casualty business
Single Occurrence Limit	262,500	[3]
Aggregate Limit	$ 412,500	[3]

[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.

[3] Amounts shown are Canadian dollars.

XML

Fair Value (Tables)

6 Months Ended

Jun. 30, 2014

Fair Value [Abstract]

Fair Value Measurement Levels For All Assets, Recorded At Fair And Market Value

The following table presents the fair value measurement levels for all assets, which the Company has recorded at fair value (fair and market value) as of the period indicated:

			Fair Value Measurement Using:
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
(Dollars in thousands)	June 30, 2014		(Level 1)		(Level 2)		(Level 3)
Assets:
Fixed maturities, market value
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	393,111	$	-	$	393,111	$	-
Obligations of U.S. States and political subdivisions		924,417		-		924,417		-
Corporate securities		2,087,749		-		2,087,749		-
Asset-backed securities		66,846		-		64,318		2,528
Mortgage-backed securities
Commercial		35,224		-		35,224		-
Agency residential		660,971		-		660,971		-
Non-agency residential		822		-		818		4
Foreign government securities		612,228		-		612,228		-
Foreign corporate securities		1,119,029		-		1,119,029		-
Total fixed maturities, market value		5,900,397		-		5,897,865		2,532
Fixed maturities, fair value		-		-		-		-
Equity securities, market value		15		15		-		-
Equity securities, fair value		1,247,792		1,125,956		121,836		-
Other invested assets, fair value		1,559,958		1,559,958		-		-

There were no transfers between Level 1 and Level 2 for the six months ended June 30, 2014.

The following table presents the fair value measurement levels for all assets, which the Company has recorded at fair value (fair and market value) as of the period indicated:

			Fair Value Measurement Using:
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
(Dollars in thousands)	December 31, 2013		(Level 1)		(Level 2)		(Level 3)
Assets:
Fixed maturities, market value
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	71,685	$	-	$	71,685	$	-
Obligations of U.S. States and political subdivisions		1,002,528		-		1,002,528		-
Corporate securities		1,702,415		-		1,702,415		-
Asset-backed securities		39,609		-		36,076		3,533
Mortgage-backed securities
Commercial		38,666		-		38,666		-
Agency residential		697,399		-		697,399		-
Non-agency residential		939		-		935		4
Foreign government securities		674,827		-		674,827		-
Foreign corporate securities		973,853		-		973,372		481
Total fixed maturities, market value		5,201,921		-		5,197,903		4,018
Fixed maturities, fair value		19,388		-		19,388		-
Equity securities, market value		13		13		-		-
Equity securities, fair value		1,298,940		1,179,139		119,801		-
Other invested assets, fair value		1,515,052		1,515,052		-		-

Activity Under Level 3, Fair Value Measurements Using Significant Unobservable Inputs By Asset Type

	Three Months Ended June 30, 2014											Six Months Ended June 30, 2014
	Asset-backed			Foreign			Non-agency					Asset-backed			Foreign			Non-agency
(Dollars in thousands)	Securities			Corporate			RMBS		Total			Securities			Corporate			RMBS			Total
Beginning balance	$	3,044		$	473		$	4	$	3,521		$	3,533		$	481		$	4		$	4,018
Total gains or (losses) (realized/unrealized)										-
Included in earnings		38			17			-		55			56			18			1			75
Included in other comprehensive income (loss)		28			(20	)		-		8			93			(20	)		-			73
Purchases, issuances and settlements		(582	)		(470	)		-		(1,052	)		(1,154	)		(479	)		(1	)		(1,634	)
Transfers in and/or (out) of Level 3		-			-			-		-			-			-			-			-
Ending balance	$	2,528		$	-		$	4	$	2,532		$	2,528		$	-		$	4		$	2,532
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 June 30, 2013														Six Months Ended June 30, 2013
	Asset-backed			Foreign			Non-agency			Agency					Asset-backed			Foreign			Non-agency			Agency
(Dollars in thousands)	Securities			Corporate			RMBS			RMBS		Total			Securities			Corporate			RMBS			RMBS			Total
Beginning balance	$	4,686		$	1,792		$	5		$	-	$	6,483		$	4,849		$	11,421		$	5		$	29,398		$	45,673
Total gains or (losses) (realized/unrealized)
Included in earnings		115			(649	)		2			-		(532	)		16			(651	)		2			-			(633	)
Included in other comprehensive income (loss)		(139	)		(298	)		(25	)		-		(462	)		(329	)		(422	)		(25	)		-			(776	)
Purchases, issuances and settlements		(146	)		2,087			(71	)		-		1,870			(20	)		2,837			(71	)		-			2,746
Transfers in and/or (out) of Level 3		316			4,293			412			-		5,021			316			(5,960	)		412			(29,398	)		(34,630	)
Ending balance	$	4,832		$	7,225		$	323		$	-	$	12,380		$	4,832		$	7,225		$	323		$	-		$	12,380
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.)

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Other Comprehensive Income (Loss) (Components Of Accumulated Other Comprehensive Income (Loss), Net Of Tax, In The Consolidated Balance Sheets) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Other Comprehensive Income (Loss) [Abstract]
Beginning balance of URA (D) on securities			$ 55,457	$ 157,163	$ 157,163
Current period change in URA (D) of investments - temporary			42,054		(101,447)
Current period change in URA (D) of investments - non-credit OTTI					(259)
Ending balance of URA (D) on securities	97,511		97,511		55,457
Beginning balance of foreign currency translation adjustments			71,087	90,215	90,215
Current period change in foreign currency translation adjustments			(1,115)		(19,128)
Ending balance of foreign currency translation adjustments	69,972		69,972		71,087
Beginning balance of benefit plan net gain (loss)			(38,896)	(62,511)	(62,511)
Current period change in benefit plan net gain (loss)	770	1,345	1,541	2,691	23,615
Ending balance of benefit plan net gain (loss)	(37,355)		(37,355)		(38,896)
Ending balance of accumulated other comprehensive income (loss)	$ 130,128		$ 130,128		$ 87,648

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Investments (Summary Of Components Of Net Realized Capital Gains (Losses)) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Schedule of Available-for-sale Securities [Line Items]
Other-than-temporary impairments	$ (199)		$ (199)
Total net realized capital gains (losses)	125,114	15,526	121,064	325,332
Fixed Maturity Securities [Member] | Market Value [Member]
Schedule of Available-for-sale Securities [Line Items]
Other-than-temporary impairments	(199)		(199)
Gains (losses) from sales	(928)	243	(2,925)	2,332
Fixed Maturity Securities [Member] | Fair Value [Member]
Schedule of Available-for-sale Securities [Line Items]
Gains (losses) from sales		148	940	90
Gains (losses) from fair value adjustments		(1,666)		(1,582)
Equity Securities [Member] | Fair Value [Member]
Schedule of Available-for-sale Securities [Line Items]
Gains (losses) from sales	1,721	15,888	385	23,971
Gains (losses) from fair value adjustments	52,205	16,465	77,958	122,534
Other Invested Assets [Member] | Fair Value [Member]
Schedule of Available-for-sale Securities [Line Items]
Gains (losses) from fair value adjustments	72,316	(15,552)	44,906	177,973
Short-Term Investments And Cash [Member]
Schedule of Available-for-sale Securities [Line Items]
Gains (losses) from sales	$ (1)		$ (1)	$ 14

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Investments (Summary Of Amortized Cost And Market Value Of Fixed Maturity Securities, By Contractual Maturity) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities - available for sale, Amortized Cost	$ 5,750,381	$ 5,116,600
Fixed maturity securities - available for sale, at market value	5,900,397	5,201,921
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities - available for sale, Due in one year or less, Amortized Cost	483,623	462,133
Fixed maturity securities - available for sale, Due after one year through five years, Amortized Cost	2,760,988	2,251,169
Fixed maturity securities - available for sale, Due after five years through ten years, Amortized Cost	1,098,869	988,896
Fixed maturity securities - available for sale, Due after ten years, Amortized Cost	649,891	630,555
Fixed maturity securities - available for sale, Due in one year or less, Market Value	483,931	463,674
Fixed maturity securities - available for sale, Due after one year through five years, Market Value	2,813,468	2,300,475
Fixed maturity securities - available for sale, Due after five years through ten years, Market Value	1,126,805	1,000,053
Fixed maturity securities - available for sale, Due after ten years, Market Value	712,330	661,106
Asset-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities - available for sale, Amortized Cost	65,443	38,544
Fixed maturity securities - available for sale, at market value	66,846	39,609
Commercial Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities - available for sale, Amortized Cost	31,942	34,855
Fixed maturity securities - available for sale, at market value	35,224	38,666
Agency Residential Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities - available for sale, Amortized Cost	658,989	709,589
Fixed maturity securities - available for sale, at market value	660,971	697,399
Non-Agency Residential Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities - available for sale, Amortized Cost	636	859
Fixed maturity securities - available for sale, at market value	$ 822	$ 939

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Credit Facility (Summary Of Outstanding Letters Of Credit And/Or Borrowings) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Line of Credit Facility [Line Items]
Commitment	$ 150,000	$ 150,000
In use	851	851
Citibank Holdings Credit Facility [Member]
Line of Credit Facility [Line Items]
Commitment	150,000	150,000
In use
Revolving Credit Borrowings [Member]
Line of Credit Facility [Line Items]
In use
Letters Of Credit [Member]
Line of Credit Facility [Line Items]
In use	$ 851	$ 851
Maturity/Expiry Date	Dec. 31, 2014	Dec. 31, 2014

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Related-Party Transactions (Amendments To The Share Repurchase Program For The Common Shares Approved For Repurchase) (Details)	Jun. 30, 2014
Schedule Of Common Shares Repurchase [Line Items]
Common Shares Authorized for Repurchase, amount	25,000,000
Amendment Date, 09/21/2004 [Member]
Schedule Of Common Shares Repurchase [Line Items]
Common Shares Authorized for Repurchase, amount	5,000,000
Amendment Date, 07/21/2008 [Member]
Schedule Of Common Shares Repurchase [Line Items]
Common Shares Authorized for Repurchase, amount	5,000,000
Amendment Date, 02/24/2010 [Member]
Schedule Of Common Shares Repurchase [Line Items]
Common Shares Authorized for Repurchase, amount	5,000,000
Amendment Date, 02/22/2012 [Member]
Schedule Of Common Shares Repurchase [Line Items]
Common Shares Authorized for Repurchase, amount	5,000,000
Amendment Date, 05/15/2013 [Member]
Schedule Of Common Shares Repurchase [Line Items]
Common Shares Authorized for Repurchase, amount	5,000,000

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Junior Subordinated Debt Securities Payable (Narrative) (Details) (USD $)	1 Months Ended
	May 24, 2013
Debt Instrument [Line Items]
Amount Issued	$ 329,897,000
Early redemption of junior subordinated debt, pre-tax expense	$ 7,282,000
Junior Subordinated Debt [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate	6.20%

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Contingencies (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
The Prudential Insurance Company [Member]
Loss Contingencies [Line Items]
Estimated cost to replace annuities	$ 144,022	$ 144,734
Unaffiliated Life Insurance Company [Member]
Loss Contingencies [Line Items]
Estimated cost to replace annuities	$ 30,724	$ 30,664

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Investments

6 Months Ended

Jun. 30, 2014

Investments [Abstract]

Investments

3.  INVESTMENTS

The amortized cost, market value and gross unrealized appreciation and depreciation of available for sale, fixed maturity and equity security investments, carried at market value, are as follows for the periods indicated:

	At June 30, 2014
	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	$	393,018	$	728	$	(635	)	$	393,111
Obligations of U.S. states and political subdivisions		881,697		44,770		(2,050	)		924,417
Corporate securities		2,042,111		53,019		(7,381	)		2,087,749
Asset-backed securities		65,443		1,410		(7	)		66,846
Mortgage-backed securities
Commercial		31,942		3,282		-			35,224
Agency residential		658,989		8,375		(6,393	)		660,971
Non-agency residential		636		186		-			822
Foreign government securities		585,776		30,390		(3,938	)		612,228
Foreign corporate securities		1,090,769		33,971		(5,711	)		1,119,029
Total fixed maturity securities	$	5,750,381	$	176,131	$	(26,115	)	$	5,900,397
Equity securities	$	15	$	-	$	-		$	15

	At December 31, 2013
	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	$	72,211	$	420	$	(946	)	$	71,685
Obligations of U.S. states and political subdivisions		970,735		40,815		(9,022	)		1,002,528
Corporate securities		1,669,553		45,355		(12,493	)		1,702,415
Asset-backed securities		38,544		1,065		-			39,609
Mortgage-backed securities
Commercial		34,855		3,811		-			38,666
Agency residential		709,589		6,331		(18,521	)		697,399
Non-agency residential		859		113		(33	)		939
Foreign government securities		654,029		28,739		(7,941	)		674,827
Foreign corporate securities		966,225		23,227		(15,599	)		973,853
Total fixed maturity securities	$	5,116,600	$	149,876	$	(64,555	)	$	5,201,921
Equity securities	$	15	$	-	$	(2	)	$	13

The $612,228 thousand of foreign government securities at June 30, 2014 included $77,363 thousand of European sovereign securities.  Approximately 51.5%, 16.6%, 12.4%, 8.4% and 5.4% of European Sovereign Securities represented securities held in the governments of France, the United Kingdom, Sweden, the Netherlands and Germany, respectively.  No other countries represented more than 5% of the European sovereign securities.  The Company held no sovereign securities of Portugal, Italy, Ireland, Greece or Spain at June 30, 2014.

In accordance with FASB guidance, the Company reclassified the non-credit portion of other-than-temporary impairments from retained earnings into accumulated other comprehensive income (loss), on April 1, 2009.  As of June 30, 2014, all of the previously reclassified securities have either matured or have been sold.

The amortized cost and market value of fixed maturity securities are shown in the following table by contractual maturity. Mortgage-backed securities are generally more likely to be prepaid than other fixed maturity securities. As the stated maturity of such securities may not be indicative of actual maturities, the totals for mortgage-backed and asset-backed securities are shown separately.

	At June 30, 2014				At December 31, 2013
	Amortized		Market		Amortized		Market
(Dollars in thousands)	Cost		Value		Cost		Value
Fixed maturity securities – available for sale
Due in one year or less	$	483,623	$	483,931	$	462,133	$	463,674
Due after one year through five years		2,760,988		2,813,468		2,251,169		2,300,475
Due after five years through ten years		1,098,869		1,126,805		988,896		1,000,053
Due after ten years		649,891		712,330		630,555		661,106
Asset-backed securities		65,443		66,846		38,544		39,609
Mortgage-backed securities
Commercial		31,942		35,224		34,855		38,666
Agency residential		658,989		660,971		709,589		697,399
Non-agency residential		636		822		859		939
Total fixed maturity securities	$	5,750,381	$	5,900,397	$	5,116,600	$	5,201,921

The changes in net unrealized appreciation (depreciation) for the Company's investments are derived from the following sources for the periods as indicated:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Dollars in thousands)	2014			2013			2014			2013
Increase (decrease) during the period between the market value and cost
of investments carried at market value, and deferred taxes thereon:
Fixed maturity securities	$	30,702		$	(120,835	)	$	64,695		$	(131,453	)
Fixed maturity securities, other-than-temporary impairment		-			(302	)		-			(399	)
Equity securities		2			-			2			1
Change in unrealized  appreciation (depreciation), pre-tax		30,704			(121,137	)		64,697			(131,851	)
Deferred tax benefit (expense)		(10,745	)		42,292			(22,643	)		46,008
Deferred tax benefit (expense), other-than-temporary impairment		-			106			-			140
Change in unrealized appreciation (depreciation),
net of deferred taxes, included in stockholder's equity	$	19,959		$	(78,739	)	$	42,054		$	(85,703	)

The Company frequently reviews all of its fixed maturity, available for sale securities for declines in market value and focuses its attention on securities whose fair value has fallen below 80% of their amortized cost at the time of review.  The Company then assesses whether the decline in value is temporary or other-than-temporary.  In making its assessment, the Company evaluates the current market and interest rate environment as well as specific issuer information.  Generally, a change in a security's value caused by a change in the market, interest rate or foreign exchange environment does not constitute an other-than-temporary impairment, but rather a temporary decline in market value.  Temporary declines in market value are recorded as unrealized losses in accumulated other comprehensive income (loss).  If the Company determines that the decline is other-than-temporary and the Company does not have the intent to sell the security; and it is more likely than not that the Company will not have to sell the security before recovery of its cost basis, the carrying value of the investment is written down to fair value.  The fair value adjustment that is credit or foreign exchange related is recorded in net realized capital gains (losses) in the Company's consolidated statements of operations and comprehensive income (loss). The fair value adjustment that is non-credit related is recorded as a component of other comprehensive income (loss), net of tax, and is included in accumulated other comprehensive income (loss) in the Company's consolidated balance sheets.  The Company's assessments are based on the issuers current and expected future financial position, timeliness with respect to interest and/or principal payments, speed of repayments and any applicable credit enhancements or breakeven constant default rates on mortgage-backed and asset-backed securities, as well as relevant information provided by rating agencies, investment advisors and analysts.

Retrospective adjustments are employed to recalculate the values of asset-backed securities. All of the Company's asset-backed and mortgage-backed securities have a pass-through structure. Each acquisition lot is reviewed to recalculate the effective yield. The recalculated effective yield is used to derive a book value as if the new yield were applied at the time of acquisition. Outstanding principal factors from the time of acquisition to the adjustment date are used to calculate the prepayment history for all applicable securities. Conditional prepayment rates, computed with life to date factor histories and weighted average maturities, are used in the calculation of projected prepayments for pass-through security types.

The tables below display the aggregate market value and gross unrealized depreciation of fixed maturity and equity securities, by security type and contractual maturity, in each case subdivided according to length of time that individual securities had been in a continuous unrealized loss position for the periods indicated:

	Duration of Unrealized Loss at June 30, 2014 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	$	105,986	$	(45	)	$	24,597	$	(590	)	$	130,583	$	(635	)
Obligations of U.S. states and political subdivisions		-		-			92,739		(2,050	)		92,739		(2,050	)
Corporate securities		345,912		(2,814	)		190,310		(4,567	)		536,222		(7,381	)
Asset-backed securities		12,591		(7	)		-		-			12,591		(7	)
Mortgage-backed securities
Commercial		-		-			-		-			-		-
Agency residential		56,079		(235	)		286,429		(6,158	)		342,508		(6,393	)
Non-agency residential		-		-			-		-			-		-
Foreign government securities		32,337		(711	)		65,825		(3,227	)		98,162		(3,938	)
Foreign corporate securities		68,342		(1,210	)		138,194		(4,501	)		206,536		(5,711	)
Total fixed maturity securities	$	621,247	$	(5,022	)	$	798,094	$	(21,093	)	$	1,419,341	$	(26,115	)
Equity securities		15		-			-		-			15		-
Total	$	621,262	$	(5,022	)	$	798,094	$	(21,093	)	$	1,419,356	$	(26,115	)

	Duration of Unrealized Loss at June 30, 2014 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	$	31,259	$	(1,340	)	$	37,625	$	(4,040	)	$	68,884	$	(5,380	)
Due in one year through five years		331,857		(1,950	)		265,430		(6,480	)		597,287		(8,430	)
Due in five years through ten years		185,929		(1,383	)		107,068		(1,615	)		292,997		(2,998	)
Due after ten years		3,532		(107	)		101,542		(2,800	)		105,074		(2,907	)
Asset-backed securities		12,591		(7	)		-		-			12,591		(7	)
Mortgage-backed securities		56,079		(235	)		286,429		(6,158	)		342,508		(6,393	)
Total fixed maturity securities	$	621,247	$	(5,022	)	$	798,094	$	(21,093	)	$	1,419,341	$	(26,115	)

The aggregate market value and gross unrealized losses related to investments in an unrealized loss position at June 30, 2014 were $1,419,356 thousand and $26,115 thousand, respectively.  The market value of securities for the single issuer whose securities comprised the largest unrealized loss position at June 30, 2014, did not exceed 0.4% of the overall market value of the Company's fixed maturity securities.  In addition, as indicated on the above table, there was no significant concentration of unrealized losses in any one market sector.  The $5,022 thousand of unrealized losses related to fixed maturity securities that have been in an unrealized loss position for less than one year were primarily comprised of domestic and foreign corporate securities.  Of these unrealized losses, $2,508 thousand were related to securities that were rated investment grade by at least one nationally recognized statistical rating organization.  The $21,093 thousand of unrealized losses related to fixed maturity securities in an unrealized loss position for more than one year related primarily to agency residential mortgage-backed securities, foreign and domestic corporate securities, foreign government securities as well as state and municipal securities.  Of these unrealized losses, $19,842 thousand were related to securities that were rated investment grade by at least one nationally recognized statistical rating organization.  The gross unrealized depreciation for mortgage-backed securities included less than $1 thousand related to sub-prime and alt-A loans.  In all instances, there were no projected cash flow shortfalls to recover the full book value of the investments and the related interest obligations.  The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments.

The Company, given the size of its investment portfolio and capital position, does not have the intent to sell these securities; and it is more likely than not that the Company will not have to sell the security before recovery of its cost basis.  In addition, all securities currently in an unrealized loss position are current with respect to principal and interest payments.

The tables below display the aggregate market value and gross unrealized depreciation of fixed maturity and equity securities, by security type and contractual maturity, in each case subdivided according to length of time that individual securities had been in a continuous unrealized loss position for the periods indicated:

	Duration of Unrealized Loss at December 31, 2013 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	$	39,274	$	(302	)	$	8,751	$	(644	)	$	48,025	$	(946	)
Obligations of U.S. states and political subdivisions		92,760		(4,852	)		39,689		(4,170	)		132,449		(9,022	)
Corporate securities		388,721		(8,981	)		56,156		(3,512	)		444,877		(12,493	)
Asset-backed securities		-		-			-		-			-		-
Mortgage-backed securities
Commercial		-		-			-		-			-		-
Agency residential		381,149		(14,084	)		131,504		(4,437	)		512,653		(18,521	)
Non-agency residential		-		-			202		(33	)		202		(33	)
Foreign government securities		100,984		(5,255	)		29,174		(2,686	)		130,158		(7,941	)
Foreign corporate securities		321,933		(11,394	)		66,715		(4,205	)		388,648		(15,599	)
Total fixed maturity securities	$	1,324,821	$	(44,868	)	$	332,191	$	(19,687	)	$	1,657,012	$	(64,555	)
Equity securities		13		(2	)		-		-			13		(2	)
Total	$	1,324,834	$	(44,870	)	$	332,191	$	(19,687	)	$	1,657,025	$	(64,557	)

	Duration of Unrealized Loss at December 31, 2013 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	$	17,315	$	(1,273	)	$	31,679	$	(4,132	)	$	48,994	$	(5,405	)
Due in one year through five years		425,627		(8,982	)		111,150		(5,647	)		536,777		(14,629	)
Due in five years through ten years		312,341		(10,408	)		14,865		(663	)		327,206		(11,071	)
Due after ten years		188,389		(10,121	)		42,791		(4,775	)		231,180		(14,896	)
Asset-backed securities		-		-			-		-			-		-
Mortgage-backed securities		381,149		(14,084	)		131,706		(4,470	)		512,855		(18,554	)
Total fixed maturity securities	$	1,324,821	$	(44,868	)	$	332,191	$	(19,687	)	$	1,657,012	$	(64,555	)

The aggregate market value and gross unrealized losses related to investments in an unrealized loss position at December 31, 2013 were $1,657,025 thousand and $64,557 thousand, respectively.  The market value of securities for the single issuer whose securities comprised the largest unrealized loss position at December 31, 2013, did not exceed 0.9% of the overall market value of the Company's fixed maturity securities.  In addition, as indicated on the above table, there was no significant concentration of unrealized losses in any one market sector.  The $44,868 thousand of unrealized losses related to fixed maturity securities that have been in an unrealized loss position for less than one year were primarily comprised of domestic and foreign corporate securities, foreign government securities, agency residential mortgage-backed securities as well as state and municipal securities.  Of these unrealized losses, $38,527 thousand were related to securities that were rated investment grade by at least one nationally recognized statistical rating organization.  The $19,687 thousand of unrealized losses related to fixed maturity securities in an unrealized loss position for more than one year related primarily to domestic and foreign corporate securities, foreign government securities, agency residential mortgage-backed securities as well as state and municipal securities.  Of these unrealized losses, $18,867 thousand were related to securities that were rated investment grade by at least one nationally recognized statistical rating organization.  The gross unrealized depreciation for mortgage-backed securities included $33 thousand related to sub-prime and alt-A loans.  In all instances, there were no projected cash flow shortfalls to recover the full book value of the investments and the related interest obligations.  The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments.

Other invested assets, at fair value, is comprised of common shares of the Company's ultimate parent, Group.  At June 30, 2014, the Company held 9,719,971 shares of Group representing 17.5% of the total outstanding shares.

The components of net investment income are presented in the table below for the periods indicated:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Dollars in thousands)	2014			2013			2014			2013
Fixed maturities	$	53,921		$	53,366		$	105,000		$	107,265
Equity securities		9,180			11,114			18,117			18,845
Short-term investments and cash		459			137			645			403
Other invested assets
Limited partnerships		2,695			14,192			(392	)		25,540
Dividends from Parent's shares		7,290			4,665			14,580			9,331
Other		330			1,935			2,351			4,255
Gross investment income before adjustments		73,875			85,409			140,301			165,639
Funds held interest income (expense)		1,183			1,018			3,292			3,436
Gross investment income		75,058			86,427			143,593			169,075
Investment expenses		(6,422	)		(4,691	)		(11,170	)		(10,470	)
Net investment income	$	68,636		$	81,736		$	132,423		$	158,605

The Company records results from limited partnership investments on the equity method of accounting with changes in value reported through net investment income. Due to the timing of receiving financial information from these partnerships, the results are generally reported on a one month or quarter lag.  If the Company determines there has been a significant decline in value of a limited partnership during this lag period, a loss will be recorded in the period in which the Company identifies the decline.

The Company had contractual commitments to invest up to an additional $168,244 thousand in limited partnerships at June 30, 2014.  These commitments will be funded when called in accordance with the partnership agreements, which have investment periods that expire, unless extended, through 2017.

The components of net realized capital gains (losses) are presented in the table below for the periods indicated:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Dollars in thousands)	2014			2013			2014			2013
Fixed maturity securities, market value:
Other-than-temporary impairments	$	(199	)	$	-		$	(199	)	$	-
Gains (losses) from sales		(928	)		243			(2,925	)		2,332
Fixed maturity securities, fair value:
Gain (losses) from sales		-			148			940			90
Gains (losses) from fair value adjustments		-			(1,666	)		-			(1,582	)
Equity securities, fair value:
Gains (losses) from sales		1,721			15,888			385			23,971
Gains (losses) from fair value adjustments		52,205			16,465			77,958			122,534
Other invested assets, fair value:
Gains (losses) from fair value adjustments		72,316			(15,552	)		44,906			177,973
Short-term investment gains (losses)		(1	)		-			(1	)		14
Total net realized capital gains (losses)	$	125,114		$	15,526		$	121,064		$	325,332

The Company recorded as net realized capital gains (losses) in the consolidated statements of operations and comprehensive income (loss) both fair value re-measurements and write-downs in the value of securities deemed to be impaired on an other-than-temporary basis as displayed in the table above.  The Company had no other-than-temporary impaired securities where the impairment had both a credit and non-credit component.

The proceeds and split between gross gains and losses, from sales of fixed maturity and equity securities, are presented in the table below for the periods indicated:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Dollars in thousands)	2014			2013			2014			2013
Proceeds from sales of fixed maturity securities	$	178,281		$	187,368		$	348,622		$	357,966
Gross gains from sales		3,815			4,866			6,290			8,677
Gross losses from sales		(4,743	)		(4,475	)		(8,275	)		(6,255	)
Proceeds from sales of equity securities	$	116,827		$	251,018		$	292,943		$	354,846
Gross gains from sales		3,734			20,536			10,322			29,405
Gross losses from sales		(2,013	)		(4,648	)		(9,937	)		(5,434	)

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Junior Subordinated Debt Securities Payable (Schedule Of Interest Expense Incurred In Connection With Junior Subordinated Debt Securities) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Junior Subordinated Debt Securities Payable [Abstract]
Interest expense incurred		$ 3,068		$ 8,181

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Investments (Summary Of Gross Gains (Losses) From Sales Of Fixed Maturity And Equity Securities) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Proceeds from sales of securities	$ 178,281	$ 187,368	$ 348,622	$ 357,966
Gross gains from sales	3,815	4,866	6,290	8,677
Gross losses from sales	(4,743)	(4,475)	(8,275)	(6,255)
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Proceeds from sales of securities	116,827	251,018	292,943	354,846
Gross gains from sales	3,734	20,536	10,322	29,405
Gross losses from sales	$ (2,013)	$ (4,648)	$ (9,937)	$ (5,434)

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Senior Notes (Tables)

6 Months Ended

Jun. 30, 2014

Senior Notes [Abstract]

Schedule Of Outstanding Senior Notes

					June 30, 2014				December 31, 2013
					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	$	249,984	$	253,920	$	249,958	$	259,130
4.868% Senior notes	06/05/2014	06/01/2044		400,000		400,000		400,112		-		-

Schedule Of Interest Expense Incurred In Connection With Senior Notes

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Interest expense incurred	$	4,741	$	3,388	$	8,129	$	6,775

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Credit Facility (Tables)

6 Months Ended

Jun. 30, 2014

Credit Facility [Abstract]

Summary Of Outstanding Letters Of Credit And/Or Borrowings

(Dollars in thousands)	At June 30, 2014						At December 31, 2013
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	$	-			$	150,000	$	-
Total revolving credit borrowings				-						-
Total letters of credit				851		12/31/2014				851		12/31/2014
Total Citibank Holdings Credit Facility	$	150,000	$	851			$	150,000	$	851

Summary Of Costs Incurred In Connection With Credit Facilities

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Credit facility fees incurred	$	55	$	113	$	97	$	178

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Senior Notes (Schedule Of Outstanding Senior Notes) (Details) (USD $)		6 Months Ended	12 Months Ended	6 Months Ended
	May 24, 2013	Jun. 30, 2014 Senior Notes 5.4% [Member]	Dec. 31, 2013 Senior Notes 5.4% [Member]	Jun. 30, 2014 Senior Notes 4.868% [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Debt instrument, stated interest rate		5.40%	5.40%	4.868%
Date issued		Oct. 12, 2004	Oct. 12, 2004	Jun. 05, 2014
Date due		Oct. 15, 2014	Oct. 15, 2014	Jun. 01, 2044
Principal amounts	$ 329,897,000	$ 250,000,000	$ 250,000,000	$ 400,000,000
Consolidated balance sheet amount		249,984,000	249,958,000	400,000,000
Market value		$ 253,920,000	$ 259,130,000	$ 400,112,000

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Fair Value (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2013	Jun. 30, 2014	Dec. 31, 2013
Fair Value [Abstract]
Fair value of public equity portfolio			$ 91,802	$ 88,338
Transfers between Level 1 and Level 2			0
Transfers from level 3	$ (5,021)	$ 34,630

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Long Term Subordinated Notes (Tables)

6 Months Ended

Jun. 30, 2014

Long Term Subordinated Notes [Abstract]

Schedule Of Outstanding Fixed To Floating Rate Long Term Subordinated Notes

Maturity Date

June 30, 2014

December 31, 2013

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

$

238,362

$

251,083

$

238,361

$

233,292

Schedule Of Interest Expense Incurred In Connection With Long Term Subordinated Notes

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Interest expense incurred	$	3,937	$	3,937	$	7,874	$	7,874

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Junior Subordinated Debt Securities Payable (Tables)

6 Months Ended

Jun. 30, 2014

Junior Subordinated Debt Securities Payable [Abstract]

Schedule Of Interest Expense Incurred In Connection With Junior Subordinated Debt Securities

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Interest expense incurred	$	-	$	3,068	$	-	$	8,181

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Basis Of Presentation

6 Months Ended

Jun. 30, 2014

Basis Of Presentation [Abstract]

Basis Of Presentation

2. BASIS OF PRESENTATION

The unaudited consolidated financial statements of the Company for the three and six months ended June 30, 2014 and 2013 include all adjustments, consisting of normal recurring accruals, which, in the opinion of management, are necessary for a fair statement of the results on an interim basis.  Certain financial information, which is normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"), has been omitted since it is not required for interim reporting purposes. The December 31, 2013 consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP.  The results for the three and six months ended June 30, 2014 and 2013 are not necessarily indicative of the results for a full year.  These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the years ended December 31, 2013, 2012 and 2011 included in the Company's most recent Form 10-K filing.

All intercompany accounts and transactions have been eliminated.

Certain reclassifications and format changes have been made to prior years' amounts to conform to the 2014 presentation.  One reclassification relates to a correction in the manner in which the Company reports distributions received from limited partnership investments in the consolidated Statements of Cash Flows.  Prior to the fourth quarter of 2013, the Company incorrectly reflected all distributions as cash flows from investing activities in its Consolidated Statements of Cash Flows.  Starting with the fourth quarter of 2013, cash distributions from the limited partnerships that represent net investment income are reflected as cash flows from operating activities and distributions that represent the return of capital contributions are reflected as cash flows from investing activities.  For the three and six months ended June 30, 2013, $5,933 thousand and $16,185 thousand, respectively, have been reclassified from "Distributions from other invested assets" included in cash flows  from investing activities to "Distribution of limited partnership income" included in cash flows from operations.  The Company has determined that this error is not material to the financial statements of any prior period.

Application of Recently Issued Accounting Standard Changes

Presentation of Comprehensive Income. In June 2011, FASB issued amendments to existing guidance to provide two alternatives for the presentation of comprehensive income. Components of net income and comprehensive income can either be presented within a single, continuous financial statement or be presented in two separate but consecutive financial statements.  The Company has chosen to present the components of net income and comprehensive income in a single, continuous financial statement.  The guidance is effective for reporting periods beginning after December 15, 2011.  The Company implemented this guidance as of January 1, 2012.  In February, 2013, the FASB issued an additional amendment for the presentation of amounts reclassified out of accumulated other comprehensive income by component.  The Company implemented the proposed guidance as of January 1, 2013.

Treatment of Insurance Contract Acquisition Costs. In October 2010, the FASB issued authoritative guidance for the accounting for costs associated with acquiring or renewing insurance contracts.  The guidance identifies the incremental direct costs of contract acquisition and costs directly related to acquisition activities that should be capitalized.  This guidance is effective for reporting periods beginning after December 15, 2011.  The Company implemented this guidance as of January 1, 2012 and determined that $7,215 thousand of previously deferrable acquisition costs would be expensed, including $5,818 thousand and $1,397 thousand expensed in the years ended December 31, 2012 and 2013, respectively.  No additional expense will be incurred related to this guidance implementation in future periods.

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Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Schedule Of Underwriting Results For Operating Segments

	Three Months Ended				Six Months Ended
U.S. Reinsurance	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Gross written premiums	$	453,115	$	418,367	$	983,416	$	853,158
Net written premiums		215,091		215,839		466,612		433,462
Premiums earned	$	246,265	$	199,254	$	464,456	$	396,199
Incurred losses and LAE		129,676		137,099		245,660		238,293
Commission and brokerage		53,380		38,540		93,516		76,670
Other underwriting expenses		11,453		9,994		20,935		20,528
Underwriting gain (loss)	$	51,756	$	13,621	$	104,345	$	60,708

	Three Months Ended				Six Months Ended
International	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Gross written premiums	$	466,008	$	354,388	$	794,886	$	654,787
Net written premiums		147,210		162,557		288,667		296,346
Premiums earned	$	147,728	$	151,125	$	292,732	$	293,018
Incurred losses and LAE		88,888		89,883		172,463		171,966
Commission and brokerage		27,412		31,156		56,581		59,263
Other underwriting expenses		8,093		7,667		15,930		15,597
Underwriting gain (loss)	$	23,335	$	22,419	$	47,758	$	46,192

	Three Months Ended					Six Months Ended
Insurance	June 30,					June 30,
(Dollars in thousands)	2014			2013		2014			2013
Gross written premiums	$	305,697		$	307,550	$	530,973		$	556,106
Net written premiums		130,426			153,214		237,152			277,969
Premiums earned	$	126,743		$	139,643	$	233,993		$	248,811
Incurred losses and LAE		102,953			106,917		181,440			192,281
Commission and brokerage		4,530			5,669		11,319			7,554
Other underwriting expenses		27,612			26,623		49,544			51,681
Underwriting gain (loss)	$	(8,352	)	$	434	$	(8,310	)	$	(2,705	)

Schedule Of Underwriting Results For Operating Segments To Income (Loss) Before Taxes

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Dollars in thousands)	2014			2013			2014			2013
Underwriting gain (loss)	$	66,739		$	36,474		$	143,793		$	104,195
Net investment income		68,636			81,736			132,423			158,605
Net realized capital gains (losses)		125,114			15,526			121,064			325,332
Corporate expense		524			(2,065	)		(778	)		(3,837	)
Interest, fee and bond issue cost amortization expense		(8,811	)		(17,928	)		(16,247	)		(30,544	)
Other income (expense)		(8,782	)		9,744			(11,837	)		83
Income (loss) before taxes	$	243,420		$	123,487		$	368,418		$	553,834

Schedule Of Gross Written Premium Derived From Largest Non-U.S. Market

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Canada	$	36,830	$	35,436	$	74,489	$	75,582

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Investments (Summary Of Aggregate Market Value And Gross Unrealized Depreciation Of Fixed Maturity And Equity Securities, By Contractual Maturity) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Less than 12 months, Market Value	$ 621,262	$ 1,324,834
Fixed maturity securities, Less than 12 months, Gross Unrealized Depreciation	(5,022)	(44,870)
Fixed maturity securities, Greater than 12 months, Market Value	798,094	332,191
Fixed maturity securities, Greater than 12 months, Gross Unrealized Depreciation	(21,093)	(19,687)
Available-for-sale Securities, Market Value, Total	1,419,356	1,657,025
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(26,115)	(64,557)
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Less than 12 months, Market Value	621,247	1,324,821
Fixed maturity securities, Less than 12 months, Gross Unrealized Depreciation	(5,022)	(44,868)
Fixed maturity securities, Greater than 12 months, Market Value	798,094	332,191
Fixed maturity securities, Greater than 12 months, Gross Unrealized Depreciation	(21,093)	(19,687)
Available-for-sale Securities, Market Value, Total	1,419,341	1,657,012
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(26,115)	(64,555)
Due In One Year Or Less [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Less than 12 months, Market Value	31,259	17,315
Fixed maturity securities, Less than 12 months, Gross Unrealized Depreciation	(1,340)	(1,273)
Fixed maturity securities, Greater than 12 months, Market Value	37,625	31,679
Fixed maturity securities, Greater than 12 months, Gross Unrealized Depreciation	(4,040)	(4,132)
Available-for-sale Securities, Market Value, Total	68,884	48,994
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(5,380)	(5,405)
Due In One Year Through Five Years [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Less than 12 months, Market Value	331,857	425,627
Fixed maturity securities, Less than 12 months, Gross Unrealized Depreciation	(1,950)	(8,982)
Fixed maturity securities, Greater than 12 months, Market Value	265,430	111,150
Fixed maturity securities, Greater than 12 months, Gross Unrealized Depreciation	(6,480)	(5,647)
Available-for-sale Securities, Market Value, Total	597,287	536,777
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(8,430)	(14,629)
Due In Five Years Through Ten Years [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Less than 12 months, Market Value	185,929	312,341
Fixed maturity securities, Less than 12 months, Gross Unrealized Depreciation	(1,383)	(10,408)
Fixed maturity securities, Greater than 12 months, Market Value	107,068	14,865
Fixed maturity securities, Greater than 12 months, Gross Unrealized Depreciation	(1,615)	(663)
Available-for-sale Securities, Market Value, Total	292,997	327,206
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(2,998)	(11,071)
Due After Ten Years [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Less than 12 months, Market Value	3,532	188,389
Fixed maturity securities, Less than 12 months, Gross Unrealized Depreciation	(107)	(10,121)
Fixed maturity securities, Greater than 12 months, Market Value	101,542	42,791
Fixed maturity securities, Greater than 12 months, Gross Unrealized Depreciation	(2,800)	(4,775)
Available-for-sale Securities, Market Value, Total	105,074	231,180
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(2,907)	(14,896)
Asset-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Less than 12 months, Market Value	12,591
Fixed maturity securities, Less than 12 months, Gross Unrealized Depreciation	(7)
Fixed maturity securities, Greater than 12 months, Market Value
Fixed maturity securities, Greater than 12 months, Gross Unrealized Depreciation
Available-for-sale Securities, Market Value, Total	12,591
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(7)
Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, Less than 12 months, Market Value	56,079	381,149
Fixed maturity securities, Less than 12 months, Gross Unrealized Depreciation	(235)	(14,084)
Fixed maturity securities, Greater than 12 months, Market Value	286,429	131,706
Fixed maturity securities, Greater than 12 months, Gross Unrealized Depreciation	(6,158)	(4,470)
Available-for-sale Securities, Market Value, Total	342,508	512,855
Available-for-sale Securities, Gross Unrealized Depreciation, Total	$ (6,393)	$ (18,554)

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Credit Facility (Summary Of Costs Incurred In Connection With Credit Facilities) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Credit Facility [Abstract]
Credit facility fees incurred	$ 55	$ 113	$ 97	$ 178

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Related-Party Transactions (Liability Limits For Any Losses Per One Occurrence) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014
Related-Party Transactions [Abstract]
Liability Limits, Losses per one occurrence, Exceeding	$ 100,000
Liability Limits, Losses per one occurrence, Not to Exceed	$ 150,000

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
ASSETS:
Fixed maturities - available for sale, at market value (amortized cost: 2014, $5,750,381; 2013, $5,116,600)	$ 5,900,397	$ 5,201,921
Fixed maturities - available for sale, at fair value		19,388
Equity securities - available for sale, at market value (cost: 2014, $15; 2013, $15)	15	13
Equity securities - available for sale, at fair value	1,247,792	1,298,940
Short-term investments	673,408	757,162
Other invested assets (cost: 2014, $392,951; 2013, $385,776)	392,951	385,776
Other invested assets, at fair value	1,559,958	1,515,052
Cash	227,033	316,807
Total investments and cash	10,001,554	9,495,059
Accrued investment income	51,380	50,306
Premiums receivable	1,256,740	1,173,780
Reinsurance receivables - unaffiliated	673,999	530,158
Reinsurance receivables - affiliated	3,284,249	3,062,884
Funds held by reinsureds	179,551	175,526
Deferred acquisition costs	104,516	112,024
Prepaid reinsurance premiums	773,401	673,753
Other assets	300,793	247,505
TOTAL ASSETS	16,626,183	15,520,995
LIABILITIES:
Reserve for losses and loss adjustment expenses	7,657,561	7,653,229
Unearned premium reserve	1,418,445	1,317,147
Funds held under reinsurance treaties	96,754	92,514
Losses in the course of payment	502,639	350,820
Commission reserves	37,219	47,226
Other net payable to reinsurers	1,109,597	1,026,292
6.6% Long term notes due 5/1/2067	238,362	238,361
Accrued interest on debt and borrowings	6,133	4,781
Income taxes	83,675	23,949
Unsettled securities payable	72,534	53,772
Other liabilities	269,196	272,468
Total liabilities	12,142,099	11,330,517
Commitments and Contingencies (Note 6)
STOCKHOLDER'S EQUITY:
Common stock, par value: $0.01; 3,000 shares authorized; 1,000 shares issued and outstanding (2014 and 2013)
Additional paid-in capital	357,537	351,051
Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) of $70,069 at 2014 and $47,195 at 2013	130,128	87,648
Retained earnings	3,996,419	3,751,779
Total stockholder's equity	4,484,084	4,190,478
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	16,626,183	15,520,995
Senior Notes 4.868% [Member]
LIABILITIES:
Senior notes due	400,000
Senior Notes 5.4% [Member]
LIABILITIES:
Senior notes due	$ 249,984	$ 249,958

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Fair Value (Fair Value Measurement Levels For All Assets, Recorded At Fair And Market Value) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	$ 5,900,397	$ 5,201,921
Fixed maturities - available for sale, at fair value		19,388
Equity securities - available for sale, at market value	15	13
Equity securities - available for sale, at fair value	1,247,792	1,298,940
Other invested assets, at fair value	1,559,958	1,515,052
Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Equity securities - available for sale, at market value	15	13
Equity securities - available for sale, at fair value	1,125,956	1,179,139
Other invested assets, at fair value	1,559,958	1,515,052
Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	5,897,865	5,197,903
Fixed maturities - available for sale, at fair value		19,388
Equity securities - available for sale, at fair value	121,836	119,801
Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	2,532	4,018
U.S. Treasury Securities And Obligations Of U.S. Government Agencies And Corporations [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	393,111	71,685
U.S. Treasury Securities And Obligations Of U.S. Government Agencies And Corporations [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	393,111	71,685
Obligation Of U.S. States And Political Subdivisions [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	924,417	1,002,528
Obligation Of U.S. States And Political Subdivisions [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	924,417	1,002,528
Corporate Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	2,087,749	1,702,415
Corporate Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	2,087,749	1,702,415
Asset-Backed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	66,846	39,609
Asset-Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	64,318	36,076
Asset-Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	2,528	3,533
Commercial Mortgage-Backed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	35,224	38,666
Commercial Mortgage-Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	35,224	38,666
Agency Residential Mortgage-Backed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	660,971	697,399
Agency Residential Mortgage-Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	660,971	697,399
Non-Agency Residential Mortgage-Backed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	822	939
Non-Agency Residential Mortgage-Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	818	935
Non-Agency Residential Mortgage-Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	4	4
Foreign Government Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	612,228	674,827
Foreign Government Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	612,228	674,827
Foreign Corporate Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	1,119,029	973,853
Foreign Corporate Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	1,119,029	973,372
Foreign Corporate Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value		$ 481

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Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 158,174	$ 85,262	$ 244,640	$ 370,913
Adjustments to reconcile net income to net cash provided by operating activities:
Decrease (increase) in premiums receivable	(95,148)	(145,988)	(82,537)	(197,543)
Decrease (increase) in funds held by reinsureds, net	(2,476)	(6,364)	401	(12,486)
Decrease (increase) in reinsurance receivables	(89,030)	(64,010)	(368,394)	(86,152)
Decrease (increase) in income taxes	12,432	(8,697)	36,879	123,402
Decrease (increase) in prepaid reinsurance premiums	(53,035)	(37,771)	(100,075)	(54,149)
Increase (decrease) in reserve for losses and loss adjustment expenses	66,292	(77,864)	7,882	(254,292)
Increase (decrease) in unearned premiums	25,138	78,867	101,264	122,814
Increase (decrease) in other net payable to reinsurers	(47,321)	121,516	83,206	116,897
Increase (decrease) in losses in course of payment	49,634	73,102	151,503	235,534
Change in equity adjustments in limited partnerships	(1,982)	(13,602)	1,161	(24,822)
Distribution of limited partnership income	3,333	5,933	9,157	16,185
Change in other assets and liabilities, net	(35,283)	(24,739)	(51,901)	(11,751)
Non-cash compensation expense	1,969	1,800	3,698	3,973
Amortization of bond premium (accrual of bond discount)	5,577	7,134	11,581	13,697
Amortization of underwriting discount on senior notes	14	14	28	27
Net realized capital (gains) losses	(125,114)	(15,526)	(121,064)	(325,332)
Net cash provided by (used in) operating activities	(126,826)	(20,933)	(72,571)	36,915
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from fixed maturities matured/called - available for sale, at market value	312,199	329,143	519,733	627,384
Proceeds from fixed maturities matured/called - available for sale, at fair value		4,213	875	7,213
Proceeds from fixed maturities sold - available for sale, at market value	178,281	173,690	327,859	340,624
Proceeds from fixed maturities sold - available for sale, at fair value		13,678	20,763	17,342
Proceeds from equity securities sold - available for sale, at fair value	116,827	251,018	292,943	354,846
Distributions from other invested assets	5,443	21,378	15,271	43,603
Cost of fixed maturities acquired - available for sale, at market value	(810,168)	(414,379)	(1,499,373)	(1,000,902)
Cost of fixed maturities acquired - available for sale, at fair value		(1,411)	(1,309)	(2,706)
Cost of equity securities acquired - available for sale, at fair value	(86,025)	(113,147)	(163,452)	(233,674)
Cost of other invested assets acquired	(27,803)	(3,847)	(32,764)	(8,508)
Net change in short-term investments	(29,636)	13,055	83,935	96,677
Net change in unsettled securities transactions	15,765	(14,825)	6,953	(32,383)
Net cash provided by (used in) investing activities	(325,117)	258,566	(428,566)	209,516
CASH FLOWS FROM FINANCING ACTIVITIES:
Tax benefit from share-based compensation	1,123	1,098	2,788	2,083
Revolving credit borrowings		40,000		40,000
Net cost of junior subordinated debt securities redemption		(329,897)		(329,897)
Net proceeds from issuance of senior notes	400,000		400,000
Net cash provided by (used in) financing activities	401,123	(288,799)	402,788	(287,814)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	4,588	(1,157)	8,575	(14,705)
Net increase (decrease) in cash	(46,232)	(52,323)	(89,774)	(56,088)
Cash, beginning of period	273,265	343,955	316,807	347,720
Cash, end of period	227,033	291,632	227,033	291,632
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid (recovered)	71,932	42,557	84,406	53,395
Interest paid	$ 14,677	$ 17,846	$ 14,719	$ 22,982

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Long Term Subordinated Notes (Schedule Of Outstanding Fixed To Floating Rate Long Term Subordinated Notes) (Details) (USD $)		6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended
	May 24, 2013	Jun. 30, 2014 Long Term Subordinated Debt [Member]	Dec. 31, 2013 Long Term Subordinated Debt [Member]	Jun. 30, 2014 Scheduled [Member] Long Term Subordinated Debt [Member]	Dec. 31, 2013 Scheduled [Member] Long Term Subordinated Debt [Member]	Jun. 30, 2014 Final [Member] Long Term Subordinated Debt [Member]	Dec. 31, 2013 Final [Member] Long Term Subordinated Debt [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate		6.60%	6.60%
Date issued		Apr. 26, 2007	Apr. 26, 2007
Original Principal Amount	$ 329,897,000	$ 400,000,000	$ 400,000,000
Maturity Date		May 01, 2067	May 01, 2067	May 15, 2037	May 15, 2037	May 01, 2067	May 01, 2067
Consolidated balance sheet amount		238,362,000	238,361,000
Market value		$ 251,083,000	$ 233,292,000

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Investments (Narrative) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities - available for sale, at market value	$ 5,900,397	$ 5,201,921
Percentage threshold that triggers a review of available for sale debt securities for declines in market value	80.00%
Aggregate market value of investments in unrealized loss position	1,419,356	1,657,025
Gross unrealized losses on investments in unrealized loss position	26,115	64,557
Percentage threshold of unrealized losses not exceeded by any one single issuer	0.40%	0.90%
Fixed maturity securities, duration of unrealized loss, less than 12 months, gross unrealized depreciation	5,022	44,870
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation	21,093	19,687
Additional contractual commitments	168,244
Other invested assets, at fair value, shares	9,719,971
Percentage of shares representing the total outstanding shares	17.50%
Minimum [Member]
Schedule of Available-for-sale Securities [Line Items]
Limited partnership financial reporting lag time, months	1 month
Maximum [Member]
Schedule of Available-for-sale Securities [Line Items]
Limited partnership financial reporting lag time, months	3 months
Foreign Government Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities - available for sale, at market value	612,228
Aggregate market value of investments in unrealized loss position	98,162	130,158
Gross unrealized losses on investments in unrealized loss position	3,938	7,941
Fixed maturity securities, duration of unrealized loss, less than 12 months, gross unrealized depreciation	711	5,255
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation	3,227	2,686
European Sovereign Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities - available for sale, at market value	77,363
Percentage threshold maximum of securities held in sovereign debt	5.00%
France [Member]
Schedule of Available-for-sale Securities [Line Items]
Percentage of securities held in sovereign debt of a specific country	51.50%
United Kingdom [Member]
Schedule of Available-for-sale Securities [Line Items]
Percentage of securities held in sovereign debt of a specific country	16.60%
Sweden [Member]
Schedule of Available-for-sale Securities [Line Items]
Percentage of securities held in sovereign debt of a specific country	12.40%
Netherlands [Member]
Schedule of Available-for-sale Securities [Line Items]
Percentage of securities held in sovereign debt of a specific country	8.40%
Germany [Member]
Schedule of Available-for-sale Securities [Line Items]
Percentage of securities held in sovereign debt of a specific country	5.40%
Investment Grade [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, duration of unrealized loss, less than 12 months, gross unrealized depreciation	2,508	38,527
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation	19,842	18,867
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Aggregate market value of investments in unrealized loss position	1,419,341	1,657,012
Gross unrealized losses on investments in unrealized loss position	26,115	64,555
Fixed maturity securities, duration of unrealized loss, less than 12 months, gross unrealized depreciation	5,022	44,868
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation	21,093	19,687
Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Aggregate market value of investments in unrealized loss position	342,508	512,855
Gross unrealized losses on investments in unrealized loss position	6,393	18,554
Fixed maturity securities, duration of unrealized loss, less than 12 months, gross unrealized depreciation	235	14,084
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation	6,158	4,470
Sub-Prime And Alt-A Loans [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation	$ 1	$ 33

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Segment Reporting (Schedule Of Gross Written Premium Derived From Largest Non-U.S. Market) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Segment Reporting Information [Line Items]
Percentage threshold of company revenue not exceeded by any other country	5.00%	5.00%	5.00%	5.00%
Canada [Member]
Segment Reporting Information [Line Items]
Gross written premiums	$ 36,830	$ 35,436	$ 74,489	$ 75,582

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Subsequent Events

6 Months Ended

Jun. 30, 2014

Subsequent Events [Abstract]

Subsequent Events

16. SUBSEQUENT EVENTS

The Company has evaluated known recognized and non-recognized subsequent events.  The Company does not have any subsequent events to report.

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Investments (Summary Of Unrealized Appreciation (Depreciation) Of Available For Sale, Fixed Maturity And Equity Security Investments) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Fixed Maturity Securities [Member]
Investment [Line Items]
Amortized Cost	$ 5,750,381	$ 5,116,600
Unrealized Appreciation	176,131	149,876
Unrealized Depreciation	(26,115)	(64,555)
Market Value	5,900,397	5,201,921
U.S. Treasury Securities And Obligations Of U.S. Government Agencies And Corporations [Member]
Investment [Line Items]
Amortized Cost	393,018	72,211
Unrealized Appreciation	728	420
Unrealized Depreciation	(635)	(946)
Market Value	393,111	71,685
Obligation Of U.S. States And Political Subdivisions [Member]
Investment [Line Items]
Amortized Cost	881,697	970,735
Unrealized Appreciation	44,770	40,815
Unrealized Depreciation	(2,050)	(9,022)
Market Value	924,417	1,002,528
Corporate Securities [Member]
Investment [Line Items]
Amortized Cost	2,042,111	1,669,553
Unrealized Appreciation	53,019	45,355
Unrealized Depreciation	(7,381)	(12,493)
Market Value	2,087,749	1,702,415
Asset-Backed Securities [Member]
Investment [Line Items]
Amortized Cost	65,443	38,544
Unrealized Appreciation	1,410	1,065
Unrealized Depreciation	(7)
Market Value	66,846	39,609
Commercial Mortgage-Backed Securities [Member]
Investment [Line Items]
Amortized Cost	31,942	34,855
Unrealized Appreciation	3,282	3,811
Market Value	35,224	38,666
Agency Residential Mortgage-Backed Securities [Member]
Investment [Line Items]
Amortized Cost	658,989	709,589
Unrealized Appreciation	8,375	6,331
Unrealized Depreciation	(6,393)	(18,521)
Market Value	660,971	697,399
Non-Agency Residential Mortgage-Backed Securities [Member]
Investment [Line Items]
Amortized Cost	636	859
Unrealized Appreciation	186	113
Unrealized Depreciation		(33)
Market Value	822	939
Foreign Government Securities [Member]
Investment [Line Items]
Amortized Cost	585,776	654,029
Unrealized Appreciation	30,390	28,739
Unrealized Depreciation	(3,938)	(7,941)
Market Value	612,228	674,827
Foreign Corporate Securities [Member]
Investment [Line Items]
Amortized Cost	1,090,769	966,225
Unrealized Appreciation	33,971	23,227
Unrealized Depreciation	(5,711)	(15,599)
Market Value	1,119,029	973,853
Equity Securities [Member]
Investment [Line Items]
Amortized Cost	15	15
Unrealized Depreciation		(2)
Market Value	$ 15	$ 13

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Investments (Tables)

6 Months Ended

Jun. 30, 2014

Investments [Abstract]

Summary Of Unrealized Appreciation (Depreciation) Of Available For Sale, Fixed Maturity And Equity Security Investments

	At June 30, 2014
	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	$	393,018	$	728	$	(635	)	$	393,111
Obligations of U.S. states and political subdivisions		881,697		44,770		(2,050	)		924,417
Corporate securities		2,042,111		53,019		(7,381	)		2,087,749
Asset-backed securities		65,443		1,410		(7	)		66,846
Mortgage-backed securities
Commercial		31,942		3,282		-			35,224
Agency residential		658,989		8,375		(6,393	)		660,971
Non-agency residential		636		186		-			822
Foreign government securities		585,776		30,390		(3,938	)		612,228
Foreign corporate securities		1,090,769		33,971		(5,711	)		1,119,029
Total fixed maturity securities	$	5,750,381	$	176,131	$	(26,115	)	$	5,900,397
Equity securities	$	15	$	-	$	-		$	15

	At December 31, 2013
	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	$	72,211	$	420	$	(946	)	$	71,685
Obligations of U.S. states and political subdivisions		970,735		40,815		(9,022	)		1,002,528
Corporate securities		1,669,553		45,355		(12,493	)		1,702,415
Asset-backed securities		38,544		1,065		-			39,609
Mortgage-backed securities
Commercial		34,855		3,811		-			38,666
Agency residential		709,589		6,331		(18,521	)		697,399
Non-agency residential		859		113		(33	)		939
Foreign government securities		654,029		28,739		(7,941	)		674,827
Foreign corporate securities		966,225		23,227		(15,599	)		973,853
Total fixed maturity securities	$	5,116,600	$	149,876	$	(64,555	)	$	5,201,921
Equity securities	$	15	$	-	$	(2	)	$	13

Summary Of Amortized Cost And Market Value Of Fixed Maturity Securities, By Contractual Maturity

	At June 30, 2014				At December 31, 2013
	Amortized		Market		Amortized		Market
(Dollars in thousands)	Cost		Value		Cost		Value
Fixed maturity securities – available for sale
Due in one year or less	$	483,623	$	483,931	$	462,133	$	463,674
Due after one year through five years		2,760,988		2,813,468		2,251,169		2,300,475
Due after five years through ten years		1,098,869		1,126,805		988,896		1,000,053
Due after ten years		649,891		712,330		630,555		661,106
Asset-backed securities		65,443		66,846		38,544		39,609
Mortgage-backed securities
Commercial		31,942		35,224		34,855		38,666
Agency residential		658,989		660,971		709,589		697,399
Non-agency residential		636		822		859		939
Total fixed maturity securities	$	5,750,381	$	5,900,397	$	5,116,600	$	5,201,921

Summary Of Changes In Net Unrealized Appreciation (Depreciation) For The Company's Investments

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Dollars in thousands)	2014			2013			2014			2013
Increase (decrease) during the period between the market value and cost
of investments carried at market value, and deferred taxes thereon:
Fixed maturity securities	$	30,702		$	(120,835	)	$	64,695		$	(131,453	)
Fixed maturity securities, other-than-temporary impairment		-			(302	)		-			(399	)
Equity securities		2			-			2			1
Change in unrealized  appreciation (depreciation), pre-tax		30,704			(121,137	)		64,697			(131,851	)
Deferred tax benefit (expense)		(10,745	)		42,292			(22,643	)		46,008
Deferred tax benefit (expense), other-than-temporary impairment		-			106			-			140
Change in unrealized appreciation (depreciation),
net of deferred taxes, included in stockholder's equity	$	19,959		$	(78,739	)	$	42,054		$	(85,703	)

Summary Of Aggregate Market Value And Gross Unrealized Depreciation Of Fixed Maturity And Equity Securities, By Security Type

	Duration of Unrealized Loss at June 30, 2014 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	$	105,986	$	(45	)	$	24,597	$	(590	)	$	130,583	$	(635	)
Obligations of U.S. states and political subdivisions		-		-			92,739		(2,050	)		92,739		(2,050	)
Corporate securities		345,912		(2,814	)		190,310		(4,567	)		536,222		(7,381	)
Asset-backed securities		12,591		(7	)		-		-			12,591		(7	)
Mortgage-backed securities
Commercial		-		-			-		-			-		-
Agency residential		56,079		(235	)		286,429		(6,158	)		342,508		(6,393	)
Non-agency residential		-		-			-		-			-		-
Foreign government securities		32,337		(711	)		65,825		(3,227	)		98,162		(3,938	)
Foreign corporate securities		68,342		(1,210	)		138,194		(4,501	)		206,536		(5,711	)
Total fixed maturity securities	$	621,247	$	(5,022	)	$	798,094	$	(21,093	)	$	1,419,341	$	(26,115	)
Equity securities		15		-			-		-			15		-
Total	$	621,262	$	(5,022	)	$	798,094	$	(21,093	)	$	1,419,356	$	(26,115	)

	Duration of Unrealized Loss at December 31, 2013 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	$	39,274	$	(302	)	$	8,751	$	(644	)	$	48,025	$	(946	)
Obligations of U.S. states and political subdivisions		92,760		(4,852	)		39,689		(4,170	)		132,449		(9,022	)
Corporate securities		388,721		(8,981	)		56,156		(3,512	)		444,877		(12,493	)
Asset-backed securities		-		-			-		-			-		-
Mortgage-backed securities
Commercial		-		-			-		-			-		-
Agency residential		381,149		(14,084	)		131,504		(4,437	)		512,653		(18,521	)
Non-agency residential		-		-			202		(33	)		202		(33	)
Foreign government securities		100,984		(5,255	)		29,174		(2,686	)		130,158		(7,941	)
Foreign corporate securities		321,933		(11,394	)		66,715		(4,205	)		388,648		(15,599	)
Total fixed maturity securities	$	1,324,821	$	(44,868	)	$	332,191	$	(19,687	)	$	1,657,012	$	(64,555	)
Equity securities		13		(2	)		-		-			13		(2	)
Total	$	1,324,834	$	(44,870	)	$	332,191	$	(19,687	)	$	1,657,025	$	(64,557	)

Summary Of Aggregate Market Value And Gross Unrealized Depreciation Of Fixed Maturity And Equity Securities, By Contractual Maturity

	Duration of Unrealized Loss at June 30, 2014 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	$	31,259	$	(1,340	)	$	37,625	$	(4,040	)	$	68,884	$	(5,380	)
Due in one year through five years		331,857		(1,950	)		265,430		(6,480	)		597,287		(8,430	)
Due in five years through ten years		185,929		(1,383	)		107,068		(1,615	)		292,997		(2,998	)
Due after ten years		3,532		(107	)		101,542		(2,800	)		105,074		(2,907	)
Asset-backed securities		12,591		(7	)		-		-			12,591		(7	)
Mortgage-backed securities		56,079		(235	)		286,429		(6,158	)		342,508		(6,393	)
Total fixed maturity securities	$	621,247	$	(5,022	)	$	798,094	$	(21,093	)	$	1,419,341	$	(26,115	)

	Duration of Unrealized Loss at December 31, 2013 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	$	17,315	$	(1,273	)	$	31,679	$	(4,132	)	$	48,994	$	(5,405	)
Due in one year through five years		425,627		(8,982	)		111,150		(5,647	)		536,777		(14,629	)
Due in five years through ten years		312,341		(10,408	)		14,865		(663	)		327,206		(11,071	)
Due after ten years		188,389		(10,121	)		42,791		(4,775	)		231,180		(14,896	)
Asset-backed securities		-		-			-		-			-		-
Mortgage-backed securities		381,149		(14,084	)		131,706		(4,470	)		512,855		(18,554	)
Total fixed maturity securities	$	1,324,821	$	(44,868	)	$	332,191	$	(19,687	)	$	1,657,012	$	(64,555	)

Summary Of Components Of Net Investment Income

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Dollars in thousands)	2014			2013			2014			2013
Fixed maturities	$	53,921		$	53,366		$	105,000		$	107,265
Equity securities		9,180			11,114			18,117			18,845
Short-term investments and cash		459			137			645			403
Other invested assets
Limited partnerships		2,695			14,192			(392	)		25,540
Dividends from Parent's shares		7,290			4,665			14,580			9,331
Other		330			1,935			2,351			4,255
Gross investment income before adjustments		73,875			85,409			140,301			165,639
Funds held interest income (expense)		1,183			1,018			3,292			3,436
Gross investment income		75,058			86,427			143,593			169,075
Investment expenses		(6,422	)		(4,691	)		(11,170	)		(10,470	)
Net investment income	$	68,636		$	81,736		$	132,423		$	158,605

Summary Of Components Of Net Realized Capital Gains (Losses)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Dollars in thousands)	2014			2013			2014			2013
Fixed maturity securities, market value:
Other-than-temporary impairments	$	(199	)	$	-		$	(199	)	$	-
Gains (losses) from sales		(928	)		243			(2,925	)		2,332
Fixed maturity securities, fair value:
Gain (losses) from sales		-			148			940			90
Gains (losses) from fair value adjustments		-			(1,666	)		-			(1,582	)
Equity securities, fair value:
Gains (losses) from sales		1,721			15,888			385			23,971
Gains (losses) from fair value adjustments		52,205			16,465			77,958			122,534
Other invested assets, fair value:
Gains (losses) from fair value adjustments		72,316			(15,552	)		44,906			177,973
Short-term investment gains (losses)		(1	)		-			(1	)		14
Total net realized capital gains (losses)	$	125,114		$	15,526		$	121,064		$	325,332

Summary Of Gross Gains (Losses) From Sales Of Fixed Maturity And Equity Securities

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Dollars in thousands)	2014			2013			2014			2013
Proceeds from sales of fixed maturity securities	$	178,281		$	187,368		$	348,622		$	357,966
Gross gains from sales		3,815			4,866			6,290			8,677
Gross losses from sales		(4,743	)		(4,475	)		(8,275	)		(6,255	)
Proceeds from sales of equity securities	$	116,827		$	251,018		$	292,943		$	354,846
Gross gains from sales		3,734			20,536			10,322			29,405
Gross losses from sales		(2,013	)		(4,648	)		(9,937	)		(5,434	)

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Related-Party Transactions (Purchase Price For Common Shares) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014
Related-Party Transactions [Abstract]
Total purchase price	$ 835,371

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General

6 Months Ended

Jun. 30, 2014

General [Abstract]

General

1.  GENERAL

As used in this document, "Holdings" means Everest Reinsurance Holdings, Inc., a Delaware company and direct subsidiary of Everest Underwriting Group (Ireland) Limited ("Holdings Ireland"); "Group" means Everest Re Group, Ltd. (Holdings Ireland's parent); "Bermuda Re" means Everest Reinsurance (Bermuda), Ltd., a subsidiary of Group; "Everest Re" means Everest Reinsurance Company and its subsidiaries, a subsidiary of Holdings (unless the context otherwise requires); "Mt. Logan Re" means Mt. Logan Re Ltd., a subsidiary of Group; and the "Company" means Holdings and its subsidiaries.

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Fixed maturities - available for sale, amortized cost	$ 5,750,381	$ 5,116,600
Equity securities - available for sale, cost	15	15
Other invested assets, cost	392,951	385,776
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	3,000	3,000
Common stock, shares issued	1,000	1,000
Common stock, shares outstanding	1,000	1,000
Accumulated other comprehensive income (loss), deferred income tax expense (benefit)	$ 70,069	$ 47,195
Senior Notes 4.868% [Member]
Debt instrument, stated interest rate	4.868%
Debt instrument, maturity date	Jun. 01, 2044
Senior Notes 5.4% [Member]
Debt instrument, stated interest rate	5.40%	5.40%
Debt instrument, maturity date	Oct. 15, 2014	Oct. 15, 2014
Long Term Subordinated Debt [Member]
Debt instrument, stated interest rate	6.60%	6.60%
Debt instrument, maturity date	May 01, 2067	May 01, 2067

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Long Term Subordinated Notes

6 Months Ended

Jun. 30, 2014

Long Term Subordinated Notes [Abstract]

Long Term Subordinated Notes

11.  LONG TERM SUBORDINATED NOTES

The table below displays Holdings' outstanding fixed to floating rate long term subordinated notes.  Market value is based on quoted market prices, but due to limited trading activity, these subordinated notes are considered Level 2 in the fair value hierarchy.

Maturity Date

June 30, 2014

December 31, 2013

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

$

238,362

$

251,083

$

238,361

$

233,292

During  the fixed rate interest period from May 3, 2007 through May 14, 2017, interest will be at the annual rate of 6.6%, payable semi-annually in arrears on November 15 and May 15 of each year, commencing on November 15, 2007, subject to Holdings' right to defer interest on one or more occasions for up to ten consecutive years.  During the floating rate interest period from May 15, 2017 through maturity, interest will be based on the 3 month LIBOR plus 238.5 basis points, reset quarterly, payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, subject to Holdings' right to defer interest on one or more occasions for up to ten consecutive years.  Deferred interest will accumulate interest at the applicable rate compounded semi-annually for periods prior to May 15, 2017, and compounded quarterly for periods from and including May 15, 2017.

Holdings can redeem the long term subordinated notes prior to May 15, 2017, in whole but not in part at the applicable redemption price, which will equal the greater of (a) 100% of the principal amount being redeemed and (b) the present value of the principal payment on May 15, 2017 and scheduled payments of interest that would have accrued from the redemption date to May 15, 2017 on the long term subordinated notes being redeemed, discounted to the redemption date on a semi-annual basis at a discount rate equal to the treasury rate plus an applicable spread of either 0.25% or 0.50%, in each case plus accrued and unpaid interest.  Holdings may redeem the long term subordinated notes on or after May 15, 2017, in whole or in part at 100% of the principal amount plus accrued and unpaid interest; however, redemption on or after the scheduled maturity date and prior to May 1, 2047 is subject to a replacement capital covenant.  This covenant is for the benefit of certain senior note holders and it mandates that Holdings receive proceeds from the sale of another subordinated debt issue, of at least similar size, before it may redeem the subordinated notes.

On March 19, 2009, Group announced the commencement of a cash tender offer for any and all of the 6.60% fixed to floating rate long term subordinated notes.  Upon expiration of the tender offer, the Company had reduced its outstanding debt by $161,441 thousand.

Interest expense incurred in connection with these long term subordinated notes is as follows for the periods indicated:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Interest expense incurred	$	3,937	$	3,937	$	7,874	$	7,874

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Document And Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 01, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2
Entity Registrant Name	EVEREST REINSURANCE HOLDINGS INC
Entity Central Index Key	0000914748
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		1,000

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Junior Subordinated Debt Securities Payable

6 Months Ended

Jun. 30, 2014

Junior Subordinated Debt Securities Payable [Abstract]

Junior Subordinated Debt Securities Payable

12.  JUNIOR SUBORDINATED DEBT SECURITIES PAYABLE

In accordance with the provisions of the junior subordinated debt securities which were issued on March 29, 2004, Holdings elected to redeem the $329,897 thousand of 6.2% junior subordinated debt securities outstanding on May 24, 2013.  As a result of the early redemption, the Company incurred pre-tax expense of $7,282 thousand related to the immediate amortization of the remaining capitalized issuance costs on the trust preferred securities.

Interest expense incurred in connection with these junior subordinated debt securities is as follows for the periods indicated:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Interest expense incurred	$	-	$	3,068	$	-	$	8,181

Holdings considered the mechanisms and obligations relating to the trust preferred securities, taken together, constituted a full and unconditional guarantee by Holdings of Capital Trust II's payment obligations with respect to their trust preferred securities.

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Consolidated Statements Of Operations And Comprehensive Income (Loss) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
REVENUES:
Premiums earned	$ 520,736	$ 490,022	$ 991,181	$ 938,028
Net investment income	68,636	81,736	132,423	158,605
Net realized capital gains (losses):
Other-than-temporary impairments on fixed maturity securities	(199)		(199)
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income (loss)
Other net realized capital gains (losses)	125,313	15,526	121,263	325,332
Total net realized capital gains (losses)	125,114	15,526	121,064	325,332
Other income (expense)	(8,782)	9,744	(11,837)	83
Total revenues	705,704	597,028	1,232,831	1,422,048
CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses	321,517	333,899	599,563	602,540
Commission, brokerage, taxes and fees	85,322	75,365	161,416	143,487
Other underwriting expenses	47,158	44,284	86,409	87,806
Corporate expenses	(524)	2,065	778	3,837
Interest, fee and bond issue cost amortization expense	8,811	17,928	16,247	30,544
Total claims and expenses	462,284	473,541	864,413	868,214
INCOME (LOSS) BEFORE TAXES	243,420	123,487	368,418	553,834
Income tax expense (benefit)	85,246	38,225	123,778	182,921
NET INCOME (LOSS)	158,174	85,262	244,640	370,913
Other comprehensive income (loss), net of tax :
Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period	19,102	(78,581)	39,899	(84,187)
Less: reclassification adjustment for realized losses (gains) included in net income (loss)	857	(158)	2,155	(1,516)
Total URA(D) on securities arising during the period	19,959	(78,739)	42,054	(85,703)
Foreign currency translation adjustments	6,721	371	(1,115)	(7,225)
Benefit plan actuarial net gain (loss) for the period
Reclassification adjustment for amortization of net (gain) loss included in net income (loss)	770	1,345	1,541	2,691
Total benefit plan net gain (loss) for the period	770	1,345	1,541	2,691
Total other comprehensive income (loss), net of tax	27,450	(77,023)	42,480	(90,237)
COMPREHENSIVE INCOME (LOSS)	$ 185,624	$ 8,239	$ 287,120	$ 280,676

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Contingencies

6 Months Ended

Jun. 30, 2014

Contingencies [Abstract]

Contingencies

6.  CONTINGENCIES

In the ordinary course of business, the Company is involved in lawsuits, arbitrations and other formal and informal dispute resolution procedures, the outcomes of which will determine the Company's rights and obligations under insurance and reinsurance agreements.  In some disputes, the Company seeks to enforce its rights under an agreement or to collect funds owing to it.  In other matters, the Company is resisting attempts by others to collect funds or enforce alleged rights.  These disputes arise from time to time and are ultimately resolved through both informal and formal means, including negotiated resolution, arbitration and litigation.  In all such matters, the Company believes that its positions are legally and commercially reasonable.  The Company considers the statuses of these proceedings when determining its reserves for unpaid loss and loss adjustment expenses.

Aside from litigation and arbitrations related to these insurance and reinsurance agreements, the Company is not a party to any other material litigation or arbitration.

In 1993 and prior, the Company had a business arrangement with The Prudential Insurance Company of America ("The Prudential") wherein, for a fee, the Company accepted settled claim payment obligations of certain property and casualty insurers, and, concurrently, became the owner of the annuity or assignee of the annuity proceeds funded by the property and casualty insurers specifically to fulfill these fully settled obligations.  In these circumstances, the Company would be liable if The Prudential, which has an A+ (Superior) financial strength rating from A.M. Best Company ("A.M. Best"), was unable to make the annuity payments.  The table below presents the estimated cost to replace all such annuities for which the Company was contingently liable for the periods indicated:

(Dollars in thousands)	At June 30, 2014		At December 31, 2013
	$	144,022	$	144,734

Prior to its 1995 initial public offering, the Company purchased annuities from an unaffiliated life insurance company with an A+ (Superior) financial strength rating from A.M. Best to settle certain claim liabilities of the company.  Should the life insurance company become unable to make the annuity payments, the Company would be liable for those claim liabilities.  The table below presents the estimated cost to replace all such annuities for which the Company was contingently liable for the periods indicated:

(Dollars in thousands)	At June 30, 2014		At December 31, 2013
	$	30,724	$	30,664

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Capital Transactions

6 Months Ended

Jun. 30, 2014

Capital Transactions [Abstract]

Capital Transactions

5.  CAPITAL TRANSACTIONS

On July 9, 2014, the Company renewed its shelf registration statement on Form S-3ASR with the Securities and Exchange Commission (the "SEC"), as a Well Known Seasoned Issuer.  This shelf registration statement can be used by Group to register common shares, preferred shares, debt securities, warrants, share purchase contracts and share purchase units; by Holdings to register debt securities and by Everest Re Capital Trust III ("Capital Trust III") to register trust preferred securities.

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Basis Of Presentation (Policy)

6 Months Ended

Jun. 30, 2014

Basis Of Presentation [Abstract]

Presentation Of Comprehensive Income

Presentation of Comprehensive Income. In June 2011, FASB issued amendments to existing guidance to provide two alternatives for the presentation of comprehensive income. Components of net income and comprehensive income can either be presented within a single, continuous financial statement or be presented in two separate but consecutive financial statements.  The Company has chosen to present the components of net income and comprehensive income in a single, continuous financial statement.  The guidance is effective for reporting periods beginning after December 15, 2011.  The Company implemented this guidance as of January 1, 2012.  In February, 2013, the FASB issued an additional amendment for the presentation of amounts reclassified out of accumulated other comprehensive income by component.  The Company implemented the proposed guidance as of January 1, 2013.

Treatment Of Insurance Contract Acquisition Costs

Treatment of Insurance Contract Acquisition Costs. In October 2010, the FASB issued authoritative guidance for the accounting for costs associated with acquiring or renewing insurance contracts.  The guidance identifies the incremental direct costs of contract acquisition and costs directly related to acquisition activities that should be capitalized.  This guidance is effective for reporting periods beginning after December 15, 2011.  The Company implemented this guidance as of January 1, 2012 and determined that $7,215 thousand of previously deferrable acquisition costs would be expensed, including $5,818 thousand and $1,397 thousand expensed in the years ended December 31, 2012 and 2013, respectively.  No additional expense will be incurred related to this guidance implementation in future periods.

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Segment Reporting

6 Months Ended

Jun. 30, 2014

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.

The following tables present the underwriting results for the operating segments for the periods indicated:

	Three Months Ended				Six Months Ended
U.S. Reinsurance	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Gross written premiums	$	453,115	$	418,367	$	983,416	$	853,158
Net written premiums		215,091		215,839		466,612		433,462
Premiums earned	$	246,265	$	199,254	$	464,456	$	396,199
Incurred losses and LAE		129,676		137,099		245,660		238,293
Commission and brokerage		53,380		38,540		93,516		76,670
Other underwriting expenses		11,453		9,994		20,935		20,528
Underwriting gain (loss)	$	51,756	$	13,621	$	104,345	$	60,708

	Three Months Ended				Six Months Ended
International	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Gross written premiums	$	466,008	$	354,388	$	794,886	$	654,787
Net written premiums		147,210		162,557		288,667		296,346
Premiums earned	$	147,728	$	151,125	$	292,732	$	293,018
Incurred losses and LAE		88,888		89,883		172,463		171,966
Commission and brokerage		27,412		31,156		56,581		59,263
Other underwriting expenses		8,093		7,667		15,930		15,597
Underwriting gain (loss)	$	23,335	$	22,419	$	47,758	$	46,192

	Three Months Ended					Six Months Ended
Insurance	June 30,					June 30,
(Dollars in thousands)	2014			2013		2014			2013
Gross written premiums	$	305,697		$	307,550	$	530,973		$	556,106
Net written premiums		130,426			153,214		237,152			277,969
Premiums earned	$	126,743		$	139,643	$	233,993		$	248,811
Incurred losses and LAE		102,953			106,917		181,440			192,281
Commission and brokerage		4,530			5,669		11,319			7,554
Other underwriting expenses		27,612			26,623		49,544			51,681
Underwriting gain (loss)	$	(8,352	)	$	434	$	(8,310	)	$	(2,705	)

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)	2014			2013			2014			2013
Underwriting gain (loss)	$	66,739		$	36,474		$	143,793		$	104,195
Net investment income		68,636			81,736			132,423			158,605
Net realized capital gains (losses)		125,114			15,526			121,064			325,332
Corporate expense		524			(2,065	)		(778	)		(3,837	)
Interest, fee and bond issue cost amortization expense		(8,811	)		(17,928	)		(16,247	)		(30,544	)
Other income (expense)		(8,782	)		9,744			(11,837	)		83
Income (loss) before taxes	$	243,420		$	123,487		$	368,418		$	553,834

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)	2014		2013		2014		2013
Canada	$	36,830	$	35,436	$	74,489	$	75,582

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

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Reinsurance And Trust Agreements

6 Months Ended

Jun. 30, 2014

Reinsurance And Trust Agreements [Abstract]

Reinsurance And Trust Agreements

9.  REINSURANCE AND TRUST AGREEMENTS

A subsidiary of the Company, Everest Re, has established a trust agreement, which effectively uses Everest Re's investments as collateral, as security for assumed losses payable to a non-affiliated ceding company.  At June 30, 2014, the total amount on deposit in the trust account was $213,335 thousand.

On April 24, 2014, the Company entered into two collateralized reinsurance agreements with Kilimanjaro Re Limited ("Kilimanjaro"), a Bermuda based special purpose reinsurer, to provide the Company with catastrophe reinsurance coverage.  These agreements are multi-year reinsurance contracts which cover specified named storm and earthquake events.  The first agreement provides up to $250,000 thousand of reinsurance coverage from named storms in specified states of the Southeastern United States.  The second agreement provides up to $200,000 thousand of reinsurance coverage from named storms in specified states of the Southeast, Mid-Atlantic and Northeast regions of the United States and Puerto Rico as well as reinsurance coverage from earthquakes in specified states of the Southeast, Mid-Atlantic, Northeast and West regions of the United States, Puerto Rico and British Columbia.

Kilimanjaro has financed the property catastrophe reinsurance coverage by issuing $450,000 thousand of catastrophe bonds to unrelated, external investors. The proceeds from the catastrophe bond issuance will be held in a reinsurance trust throughout the duration of the reinsurance agreements and invested solely in US government money market funds with a rating of at least "AAAm" by Standard & Poor's at the time of the bond issuance.

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Long Term Subordinated Notes (Schedule Of Interest Expense Incurred In Connection With Long Term Subordinated Notes) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Long Term Subordinated Notes [Abstract]
Interest expense incurred	$ 3,937	$ 3,937	$ 7,874	$ 7,874

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Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2014

Other Comprehensive Income (Loss) [Abstract]

Other Comprehensive Income (Loss)

7.  OTHER COMPREHENSIVE INCOME (LOSS)

The following tables present the components of comprehensive income (loss) in the consolidated statements of operations and comprehensive income (loss) for the periods indicated:

	Three Months Ended June 30, 2014									Six Months Ended June 30, 2014
(Dollars in thousands)	Before Tax			Tax Effect			Net of Tax			Before Tax			Tax Effect			Net of Tax
Unrealized appreciation (depreciation) ("URA(D)") on securities - temporary	$	29,577		$	(10,475	)	$	19,102		$	61,573		$	(21,674	)	$	39,899
URA(D) on securities - OTTI		-			-			-			-			-			-
Reclassification of net realized losses (gains) included in net income (loss)		1,127			(270	)		857			3,124			(969	)		2,155
Foreign currency translation adjustments		10,340			(3,619	)		6,721			(1,715	)		600			(1,115	)
Benefit plan actuarial net gain (loss)		-			-			-			-			-			-
Reclassification of amortization of net gain (loss) included in net income (loss)		1,185			(415	)		770			2,371			(830	)		1,541
Total other comprehensive income (loss)	$	42,229		$	(14,779	)	$	27,450		$	65,353		$	(22,873	)	$	42,480
	Three Months Ended June 30, 2013									Six Months Ended June 30, 2013
(Dollars in thousands)	Before Tax			Tax Effect			Net of Tax			Before Tax			Tax Effect			Net of Tax
Unrealized appreciation (depreciation) ("URA(D)") on securities - temporary	$	(120,591	)	$	42,207		$	(78,385	)	$	(129,119	)	$	45,192		$	(83,928	)
URA(D) on securities - OTTI		(302	)		106			(196	)		(399	)		140			(259	)
Reclassification of net realized losses (gains) included in net income (loss)		(244	)		85			(158	)		(2,333	)		816			(1,516	)
Foreign currency translation adjustments		570			(199	)		371			(11,116	)		3,891			(7,225	)
Benefit plan actuarial net gain (loss)		-			-			-			-			-			-
Reclassification of amortization of net gain (loss) included in net income (loss)		2,070			(725	)		1,345			4,140			(1,449	)		2,691
Total other comprehensive income (loss)	$	(118,497	)	$	41,474		$	(77,023	)	$	(138,827	)	$	48,590		$	(90,237	)
(Some amounts may not reconcile due to rounding)

The following table presents details of the amounts reclassified from accumulated other comprehensive income ("AOCI") for the periods indicated:

	Three months ended						Six months ended
	June 30,						June 30,						Affected line item within the statements of
AOCI component	2014			2013			2014			2013			operations and comprehensive income (loss)
(Dollars in thousands)
URA(D) on securities	$	1,127		$	(244	)	$	3,124		$	(2,333	)	Other net realized capital gains (losses)
		(270	)		85			(969	)		816		Income tax expense (benefit)
	$	857		$	(158	)	$	2,155		$	(1,516	)	Net income (loss)
Benefit plan net gain (loss)	$	1,185		$	2,070		$	2,371		$	4,140		Other underwriting expenses
		(415	)		(725	)		(830	)		(1,449	)	Income tax expense (benefit)
	$	770		$	1,345		$	1,541		$	2,691		Net income (loss)

The following table presents the components of accumulated other comprehensive income (loss), net of tax, in the consolidated balance sheets for the periods indicated:

	At June 30,			At December 31,
(Dollars in thousands)	2014			2013
Beginning balance of URA (D) on securities	$	55,457		$	157,163
Current period change in URA (D) of investments - temporary		42,054			(101,447	)
Current period change in URA (D) of investments - non-credit OTTI		-			(259	)
Ending balance of URA (D) on securities		97,511			55,457
Beginning balance of foreign currency translation adjustments		71,087			90,215
Current period change in foreign currency translation adjustments		(1,115	)		(19,128	)
Ending balance of foreign currency translation adjustments		69,972			71,087
Beginning balance of benefit plan net gain (loss)		(38,896	)		(62,511	)
Current period change in benefit plan net gain (loss)		1,541			23,615
Ending balance of benefit plan net gain (loss)		(37,355	)		(38,896	)
Ending balance of accumulated other comprehensive income (loss)	$	130,128		$	87,648

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Credit Facility

6 Months Ended

Jun. 30, 2014

Credit Facility [Abstract]

Credit Facility

8.  CREDIT FACILITY

Effective August 15, 2011, the Company entered into a three year, $150,000 thousand unsecured revolving credit facility with a syndicate of lenders, referred to as the "Holdings Credit Facility".  Citibank N.A. is the administrative agent for the Holdings Credit Facility.  The Holdings Credit Facility may be used for liquidity and general corporate purposes.  The Holdings Credit Facility provides for the borrowing of up to $150,000 thousand with interest at a rate selected by Holdings equal to either, (1) the Base Rate (as defined below) or (2) a periodic fixed rate equal to the Eurodollar Rate plus an applicable margin.  The Base Rate means a fluctuating interest rate per annum in effect from time to time to be equal to the higher of (a) the rate of interest publicly announced by Citibank as its base rate, (b) 0.5% per annum above the Federal Funds Rate or (c) 1% above the one month London Interbank Offered Rate ("LIBOR"), in each case plus the applicable margin.  The amount of margin and the fees payable for the Holdings Credit Facility depends upon Holdings' senior unsecured debt rating.

The Holdings Credit Facility requires Holdings to maintain a debt to capital ratio of not greater than 0.35 to 1 and Everest Re to maintain its statutory surplus at $1,875,000 thousand plus 25% of future aggregate net income and 25% of future aggregate capital contributions after December 31, 2010, which at June 30, 2014, was $2,178,952 thousand.  As of June 30, 2014, the Company was in compliance with all Holdings Credit Facility covenants.

There are certain regulatory and contractual restrictions on the ability of Holdings' operating subsidiaries to transfer funds to Holdings in the form of cash dividends, loans or advances.  The insurance laws of the State of Delaware, where Holdings' direct insurance subsidiaries are domiciled, require regulatory approval before those subsidiaries can pay dividends or make loans or advances to Holdings that exceed certain statutory thresholds.  At December 31, 2013, $2,294,461 thousand of the $3,136,782 thousand in net assets of Holdings' consolidated subsidiaries were subject to the foregoing regulatory restrictions.

The following table summarizes outstanding letters of credit and/or borrowings for the periods indicated:

(Dollars in thousands)	At June 30, 2014						At December 31, 2013
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	$	-			$	150,000	$	-
Total revolving credit borrowings				-						-
Total letters of credit				851		12/31/2014				851		12/31/2014
Total Citibank Holdings Credit Facility	$	150,000	$	851			$	150,000	$	851

The following table presents the costs incurred in connection with the Holdings Credit Facility for the periods indicated:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Credit facility fees incurred	$	55	$	113	$	97	$	178

The Company has notified the syndicate of lenders that it will not be renewing this facility at expiration.

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Senior Notes

6 Months Ended

Jun. 30, 2014

Senior Notes [Abstract]

Senior Notes

10.  SENIOR NOTES

The table below displays Holdings' outstanding senior notes.  Market value is based on quoted market prices, but due to limited trading activity, these senior notes are considered Level 2 in the fair value hierarchy.

					June 30, 2014				December 31, 2013
					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	$	249,984	$	253,920	$	249,958	$	259,130
4.868% Senior notes	06/05/2014	06/01/2044		400,000		400,000		400,112		-		-

On June 5, 2014, Holdings issued $400,000 thousand of 30 year senior notes at 4.868%, which will mature on June 1, 2044.  Capitalized costs of approximately $4,300 thousand related to the issuance of the senior notes will be expensed over the 30 year life of the notes.  Interest will be paid semi-annually on June 1 and December 1 of each year.

Interest expense incurred in connection with these senior notes is as follows for the periods indicated:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Interest expense incurred	$	4,741	$	3,388	$	8,129	$	6,775

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Segment Reporting (Schedule Of Underwriting Results For Operating Segments To Income (Loss) Before Taxes) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Segment Reporting [Abstract]
Underwriting gain (loss)	$ 66,739	$ 36,474	$ 143,793	$ 104,195
Net investment income	68,636	81,736	132,423	158,605
Net realized capital gains (losses)	125,114	15,526	121,064	325,332
Corporate expense	524	(2,065)	(778)	(3,837)
Interest, fee and bond issue cost amortization expense	(8,811)	(17,928)	(16,247)	(30,544)
Other income (expense)	(8,782)	9,744	(11,837)	83
Income (loss) before taxes	$ 243,420	$ 123,487	$ 368,418	$ 553,834

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Related-Party Transactions (Narrative) (Details) (GBP £) In Millions, except Share data, unless otherwise specified	6 Months Ended
	Jun. 30, 2014
Related-Party Transactions [Abstract]
Stock repurchase program, number of shares held	9,719,971
Reserve indemnity agreement, percent	90.00%
Reserve indemnity agreement, amount	£ 25

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Segment Reporting (Schedule Of Underwriting Results For Operating Segments) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Segment Reporting Information [Line Items]
Premiums earned	$ 520,736	$ 490,022	$ 991,181	$ 938,028
Incurred losses and LAE	321,517	333,899	599,563	602,540
Commission and brokerage	85,322	75,365	161,416	143,487
Other underwriting expenses	47,158	44,284	86,409	87,806
Underwriting gain (loss)	66,739	36,474	143,793	104,195
U.S. Reinsurance [Member]
Segment Reporting Information [Line Items]
Gross written premiums	453,115	418,367	983,416	853,158
Net written premiums	215,091	215,839	466,612	433,462
Premiums earned	246,265	199,254	464,456	396,199
Incurred losses and LAE	129,676	137,099	245,660	238,293
Commission and brokerage	53,380	38,540	93,516	76,670
Other underwriting expenses	11,453	9,994	20,935	20,528
Underwriting gain (loss)	51,756	13,621	104,345	60,708
International [Member]
Segment Reporting Information [Line Items]
Gross written premiums	466,008	354,388	794,886	654,787
Net written premiums	147,210	162,557	288,667	296,346
Premiums earned	147,728	151,125	292,732	293,018
Incurred losses and LAE	88,888	89,883	172,463	171,966
Commission and brokerage	27,412	31,156	56,581	59,263
Other underwriting expenses	8,093	7,667	15,930	15,597
Underwriting gain (loss)	23,335	22,419	47,758	46,192
Insurance [Member]
Segment Reporting Information [Line Items]
Gross written premiums	305,697	307,550	530,973	556,106
Net written premiums	130,426	153,214	237,152	277,969
Premiums earned	126,743	139,643	233,993	248,811
Incurred losses and LAE	102,953	106,917	181,440	192,281
Commission and brokerage	4,530	5,669	11,319	7,554
Other underwriting expenses	27,612	26,623	49,544	51,681
Underwriting gain (loss)	$ (8,352)	$ 434	$ (8,310)	$ (2,705)

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Basis Of Presentation (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended		12 Months Ended		24 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013 Authoritative Guidance [Member]	Dec. 31, 2012 Authoritative Guidance [Member]	Dec. 31, 2013 Authoritative Guidance [Member]
Item Effected [Line Items]
Deferrable acquisition costs expensed					$ 1,397	$ 5,818	$ 7,215
Distribution of limited partnership income	$ 3,333	$ 5,933	$ 9,157	$ 16,185

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Credit Facility (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Line of Credit Facility [Line Items]
Line of credit facility, commitment	$ 150,000	$ 150,000
Net assets of Holdings' consolidated subsidiaries, subject to regulatory restrictions		2,294,461
Net assets of consolidated subsidiaries		3,136,782
Total Citibank Holdings Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of credit facility, term of credit facility	3 years
Line of credit facility, commitment	150,000	150,000
Line of credit facility, required minimum debt-to-capital ratio	0.35
Line of credit facility, required minimum net worth	1,875,000
Percentage amount of consolidated net income required to be reserved to maintain compliance with facility covenants	25.00%
Percentage amount of increase in consolidated net worth from new issuance required to be reserved to maintain compliance with facility covenants	25.00%
Increase in reserves due to new issuance during the period required to maintain compliance with facility covenants	$ 2,178,952
Interest Rate Base Rate Option 1(a) [Member]
Line of Credit Facility [Line Items]
Line of credit facility, description of variable rate basis	the rate of interest publicly announced by Citibank as its base rate
Interest Rate Base Rate Option 1(b) [Member] | Total Citibank Holdings Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of credit facility, spread on variable rate basis	0.50%
Interest Rate Base Rate Option 1(c) [Member] | Total Citibank Holdings Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of credit facility, description of variable rate basis	1% above the one month London Interbank Offered Rate ("LIBOR"), in each case plus the applicable margin.
Line of credit facility, spread on variable rate basis	1.00%
Line Of Credit Facility Interest Rate Base Rate Option Two [Member] | Total Citibank Holdings Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of credit facility, description of variable rate basis	periodic fixed rate equal to the Eurodollar Rate plus an applicable margin

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Income Taxes

6 Months Ended

Jun. 30, 2014

Income Taxes [Abstract]

Income Taxes

15. INCOME TAXES

The Company is domiciled in the United States and has subsidiaries domiciled within the United States with significant branches in Canada and Singapore.  The Company's non-U.S. branches are subject to income taxation at varying rates in their respective domiciles.

For interim reporting periods, the company is generally required to use the annualized effective tax rate ("AETR") method, as prescribed by ASC 740-270, Interim Reporting, to calculate its income tax provision.  Under this method, the AETR is applied to the interim year-to-date pre-tax income to determine the income tax expense or benefit for the year-to-date period.  The income tax expense or benefit for a quarter represents the difference between the year-to-date income tax expense or benefit for the current year-to-date period less such amount for the immediately preceding year-to-date period.  Management considers the impact of all known events in its estimation of the Company's annual pre-tax income and AETR.

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Contingencies (Tables)

6 Months Ended

Jun. 30, 2014

Contingencies [Abstract]

Estimated Cost To Replace All Such Annuities For Which The Company Was Contingently Liable

(Dollars in thousands)	At June 30, 2014		At December 31, 2013
	$	144,022	$	144,734

(Dollars in thousands)	At June 30, 2014		At December 31, 2013
	$	30,724	$	30,664

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Other Comprehensive Income (Loss) (Reclassification From Accumulated Other Comprehensive Income) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other net realized capital gains (losses)	$ 125,313	$ 15,526	$ 121,263	$ 325,332
Other underwriting expenses	(47,158)	(44,284)	(86,409)	(87,806)
Income tax expense (benefit)	(85,246)	(38,225)	(123,778)	(182,921)
NET INCOME (LOSS)	158,174	85,262	244,640	370,913
URA(D) On Securities [Member] | Reclassification From Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other net realized capital gains (losses)	1,127	(244)	3,124	(2,333)
Income tax expense (benefit)	(270)	85	(969)	816
NET INCOME (LOSS)	857	(158)	2,155	(1,516)
Benefit Plan Liability [Member] | Reclassification From Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other underwriting expenses	1,185	2,070	2,371	4,140
Income tax expense (benefit)	(415)	(725)	(830)	(1,449)
NET INCOME (LOSS)	$ 770	$ 1,345	$ 1,541	$ 2,691

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Investments (Summary Of Components Of Net Investment Income) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustment	$ 73,875	$ 85,409	$ 140,301	$ 165,639
Funds held interest income (expense)	1,183	1,018	3,292	3,436
Gross investment income	75,058	86,427	143,593	169,075
Investment expenses	(6,422)	(4,691)	(11,170)	(10,470)
Net investment income	68,636	81,736	132,423	158,605
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustment	53,921	53,366	105,000	107,265
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustment	9,180	11,114	18,117	18,845
Short-Term Investments And Cash [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustment	459	137	645	403
Limited Partnerships [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustment	2,695	14,192	(392)	25,540
Dividends From Parent's Shares [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustment	7,290	4,665	14,580	9,331
Other [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustment	$ 330	$ 1,935	$ 2,351	$ 4,255

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Consolidated Statements Of Changes In Stockholder's Equity (USD $) In Thousands, except Share data	Common Stock [Member]	Additional Paid-In Capital [Member] USD ($)	Accumulated Other Comprehensive Income (Loss), Net Of Deferred Income Taxes [Member] USD ($)	Retained Earnings [Member] USD ($)	Total USD ($)
Balance, beginning of period at Mar. 31, 2013		$ 343,381	$ 171,653	$ 3,239,167
Balance, beginning of period, shares at Mar. 31, 2013	1,000
Share-based compensation plans		2,898
Net increase (decrease) during the period			(77,023)		(77,023)
Net income (loss)				85,262	85,262
Balance, end of period at Jun. 30, 2013		346,279	94,630	3,324,429	3,765,338
Balance, end of period, shares at Jun. 30, 2013	1,000
Balance, beginning of period at Dec. 31, 2012		340,223	184,867	2,953,516
Balance, beginning of period, shares at Dec. 31, 2012	1,000
Share-based compensation plans		6,056
Net increase (decrease) during the period			(90,237)		(90,237)
Net income (loss)				370,913	370,913
Balance, end of period at Jun. 30, 2013		346,279	94,630	3,324,429	3,765,338
Balance, end of period, shares at Jun. 30, 2013	1,000
Balance, beginning of period at Dec. 31, 2013		351,051	87,648	3,751,779	4,190,478
Balance, beginning of period, shares at Dec. 31, 2013	1,000				1,000
Share-based compensation plans		6,486
Net increase (decrease) during the period			42,480		42,480
Net income (loss)				244,640	244,640
Balance, end of period at Jun. 30, 2014		357,537	130,128	3,996,419	4,484,084
Balance, end of period, shares at Jun. 30, 2014	1,000				1,000
Balance, beginning of period at Mar. 31, 2014		354,445	102,678	3,838,245
Balance, beginning of period, shares at Mar. 31, 2014	1,000
Share-based compensation plans		3,092
Net increase (decrease) during the period			27,450		27,450
Net income (loss)				158,174	158,174
Balance, end of period at Jun. 30, 2014		$ 357,537	$ 130,128	$ 3,996,419	$ 4,484,084
Balance, end of period, shares at Jun. 30, 2014	1,000				1,000

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Fair Value

6 Months Ended

Jun. 30, 2014

Fair Value [Abstract]

Fair Value

4.  FAIR VALUE

The Company's fixed maturity and equity securities are primarily managed by third party investment asset managers.  The investment asset managers obtain prices from nationally recognized pricing services.   These services seek to utilize market data and observations in their evaluation process.  They use pricing applications that vary by asset class and incorporate available market information and when fixed maturity securities do not trade on a daily basis the services will apply available information through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing.  In addition, they use model processes, such as the Option Adjusted Spread model to develop prepayment and interest rate scenarios for securities that have prepayment features.

In limited instances where prices are not provided by pricing services or in rare instances when a manager may not agree with the pricing service, price quotes on a non-binding basis are obtained from investment brokers.  The investment asset managers do not make any changes to prices received from either the pricing services or the investment brokers.  In addition, the investment asset managers have procedures in place to review the reasonableness of the prices from the service providers and may request verification of the prices.  In addition, the Company continually performs analytical reviews of price changes and tests the prices on a random basis to an independent pricing source.   No material variances were noted during these price validation procedures.  In limited situations, where financial markets are inactive or illiquid, the Company may use its own assumptions about future cash flows and risk-adjusted discount rates to determine fair value.  The Company made no such adjustments at June 30, 2014 and December 31, 2013.

The Company internally manages a small public equity portfolio which had a fair value at June 30, 2014 and December 31, 2013, of $91,802 thousand and $88,338 thousand, respectively, and all prices were obtained from publically published sources.

Equity securities in U.S. denominated currency are categorized as Level 1, Quoted Prices in Active Markets for Identical Assets, since the securities are actively traded on an exchange and prices are based on quoted prices from the exchange.  Equity securities traded on foreign exchanges are categorized as Level 2 due to potential foreign exchange adjustments to fair or market value.

Fixed maturity securities are generally categorized as Level 2, Significant Other Observable Inputs, since a particular security may not have traded but the pricing services are able to use valuation models with observable market inputs such as interest rate yield curves and prices for similar fixed maturity securities in terms of issuer, maturity and seniority. Valuations that are derived from techniques in which one or more of the significant inputs are unobservable (including assumptions about risk) are categorized as Level 3, Significant Unobservable Inputs.  These securities include broker priced securities.

As of June 30, 2014 and December 31, 2013, all Level 3 fixed maturity securities, were priced using single non-binding broker quotes since prices for these securities were not provided by normal pricing service companies.  The single broker quotes are provided by market makers or broker-dealers who are recognized as market participants in the markets in which they are providing the quotes.  The prices received from brokers are reviewed for reasonableness by the third party asset managers and the Company.

Other invested assets, at fair value, are categorized as Level 1, Quoted Prices in Active Markets for Identical Assets, since the securities are shares of the Company's parent, which are actively traded on an exchange and the price is based on a quoted price.

The following table presents the fair value measurement levels for all assets, which the Company has recorded at fair value (fair and market value) as of the period indicated:

			Fair Value Measurement Using:
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
(Dollars in thousands)	June 30, 2014		(Level 1)		(Level 2)		(Level 3)
Assets:
Fixed maturities, market value
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	393,111	$	-	$	393,111	$	-
Obligations of U.S. States and political subdivisions		924,417		-		924,417		-
Corporate securities		2,087,749		-		2,087,749		-
Asset-backed securities		66,846		-		64,318		2,528
Mortgage-backed securities
Commercial		35,224		-		35,224		-
Agency residential		660,971		-		660,971		-
Non-agency residential		822		-		818		4
Foreign government securities		612,228		-		612,228		-
Foreign corporate securities		1,119,029		-		1,119,029		-
Total fixed maturities, market value		5,900,397		-		5,897,865		2,532
Fixed maturities, fair value		-		-		-		-
Equity securities, market value		15		15		-		-
Equity securities, fair value		1,247,792		1,125,956		121,836		-
Other invested assets, fair value		1,559,958		1,559,958		-		-

There were no transfers between Level 1 and Level 2 for the six months ended June 30, 2014.

The following table presents the fair value measurement levels for all assets, which the Company has recorded at fair value (fair and market value) as of the period indicated:

			Fair Value Measurement Using:
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
(Dollars in thousands)	December 31, 2013		(Level 1)		(Level 2)		(Level 3)
Assets:
Fixed maturities, market value
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	71,685	$	-	$	71,685	$	-
Obligations of U.S. States and political subdivisions		1,002,528		-		1,002,528		-
Corporate securities		1,702,415		-		1,702,415		-
Asset-backed securities		39,609		-		36,076		3,533
Mortgage-backed securities
Commercial		38,666		-		38,666		-
Agency residential		697,399		-		697,399		-
Non-agency residential		939		-		935		4
Foreign government securities		674,827		-		674,827		-
Foreign corporate securities		973,853		-		973,372		481
Total fixed maturities, market value		5,201,921		-		5,197,903		4,018
Fixed maturities, fair value		19,388		-		19,388		-
Equity securities, market value		13		13		-		-
Equity securities, fair value		1,298,940		1,179,139		119,801		-
Other invested assets, fair value		1,515,052		1,515,052		-		-

The following tables present the activity under Level 3, fair value measurements using significant unobservable inputs by asset type, for the periods indicated:

	Three Months Ended June 30, 2014											Six Months Ended June 30, 2014
	Asset-backed			Foreign			Non-agency					Asset-backed			Foreign			Non-agency
(Dollars in thousands)	Securities			Corporate			RMBS		Total			Securities			Corporate			RMBS			Total
Beginning balance	$	3,044		$	473		$	4	$	3,521		$	3,533		$	481		$	4		$	4,018
Total gains or (losses) (realized/unrealized)										-
Included in earnings		38			17			-		55			56			18			1			75
Included in other comprehensive income (loss)		28			(20	)		-		8			93			(20	)		-			73
Purchases, issuances and settlements		(582	)		(470	)		-		(1,052	)		(1,154	)		(479	)		(1	)		(1,634	)
Transfers in and/or (out) of Level 3		-			-			-		-			-			-			-			-
Ending balance	$	2,528		$	-		$	4	$	2,532		$	2,528		$	-		$	4		$	2,532
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 June 30, 2013														Six Months Ended June 30, 2013
	Asset-backed			Foreign			Non-agency			Agency					Asset-backed			Foreign			Non-agency			Agency
(Dollars in thousands)	Securities			Corporate			RMBS			RMBS		Total			Securities			Corporate			RMBS			RMBS			Total
Beginning balance	$	4,686		$	1,792		$	5		$	-	$	6,483		$	4,849		$	11,421		$	5		$	29,398		$	45,673
Total gains or (losses) (realized/unrealized)
Included in earnings		115			(649	)		2			-		(532	)		16			(651	)		2			-			(633	)
Included in other comprehensive income (loss)		(139	)		(298	)		(25	)		-		(462	)		(329	)		(422	)		(25	)		-			(776	)
Purchases, issuances and settlements		(146	)		2,087			(71	)		-		1,870			(20	)		2,837			(71	)		-			2,746
Transfers in and/or (out) of Level 3		316			4,293			412			-		5,021			316			(5,960	)		412			(29,398	)		(34,630	)
Ending balance	$	4,832		$	7,225		$	323		$	-	$	12,380		$	4,832		$	7,225		$	323		$	-		$	12,380
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.)

There were no transfers from level 3, fair value measurements using significant unobservable inputs, for the six months ended June 30, 2014.  The transfer from level 3, fair value measurements using significant unobservable inputs, of $34,630 thousand of investments for the six months ended June 30, 2013, primarily relates to securities that were priced using single non-binding broker quotes as of December 31, 2012.  The securities were subsequently priced using a recognized pricing service as of June 30, 2013 and were classified as level 2 as of that date.

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Long Term Subordinated Notes (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Floating rate terms	interest will be based on the 3 month LIBOR plus 238.5 basis points, reset quarterly, payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, subject to Holdings' right to defer interest on one or more occasions for up to ten consecutive years.
Percentage of principal amount required for redemption	100.00%
Redemption date	May 01, 2047
Commencement date for cash tender offer for any and all of the 6.60% fixed to floating rate long term subordinated notes	Mar. 19, 2009
Long Term Subordinated Debt [Member]
Debt Instrument [Line Items]
Annual interest rate, payable semi-annually in arrears on November 15 and May 15 of each year	6.60%	6.60%
Percentage of principal amount required for redemption	100.00%
Outstanding debt reduction	$ 161,441
Long Term Subordinated Debt [Member] | Minimum [Member]
Debt Instrument [Line Items]
Applicable spread on treasury rate	0.25%
Long Term Subordinated Debt [Member] | Maximum [Member]
Debt Instrument [Line Items]
Applicable spread on treasury rate	0.50%
Fixed Rate Interest Period [Member] | Long Term Subordinated Debt [Member]
Debt Instrument [Line Items]
Interest payment commencement date	Nov. 15, 2007
Interest basis, 3 month LIBOR plus number of basis points, reset quarterly	2.385%
Fixed Rate Interest Period [Member] | Long Term Subordinated Debt [Member] | Minimum [Member]
Debt Instrument [Line Items]
Interest Rate Period, Beginning Date	May 03, 2007
Fixed Rate Interest Period [Member] | Long Term Subordinated Debt [Member] | Maximum [Member]
Debt Instrument [Line Items]
Interest Rate Period, Ending Date	May 14, 2017
Right to defer interest on one or more occasions for up to number of consecutive years	10 years
Floating Rate Interest Period [Member]
Debt Instrument [Line Items]
Interest Rate Period, Beginning Date	May 15, 2017
Floating Rate Interest Period [Member] | Long Term Subordinated Debt [Member] | Maximum [Member]
Debt Instrument [Line Items]
Right to defer interest on one or more occasions for up to number of consecutive years	10 years

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Related-Party Transactions (Dividends Received On Common Shares Reported As Net Investment Income) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Related-Party Transactions [Abstract]
Dividends received	$ 7,290	$ 4,665	$ 14,580	$ 9,331

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Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2014

Other Comprehensive Income (Loss) [Abstract]

Components Of Comprehensive Income (Loss) In The Consolidated Statements Of Operations

	Three Months Ended June 30, 2014									Six Months Ended June 30, 2014
(Dollars in thousands)	Before Tax			Tax Effect			Net of Tax			Before Tax			Tax Effect			Net of Tax
Unrealized appreciation (depreciation) ("URA(D)") on securities - temporary	$	29,577		$	(10,475	)	$	19,102		$	61,573		$	(21,674	)	$	39,899
URA(D) on securities - OTTI		-			-			-			-			-			-
Reclassification of net realized losses (gains) included in net income (loss)		1,127			(270	)		857			3,124			(969	)		2,155
Foreign currency translation adjustments		10,340			(3,619	)		6,721			(1,715	)		600			(1,115	)
Benefit plan actuarial net gain (loss)		-			-			-			-			-			-
Reclassification of amortization of net gain (loss) included in net income (loss)		1,185			(415	)		770			2,371			(830	)		1,541
Total other comprehensive income (loss)	$	42,229		$	(14,779	)	$	27,450		$	65,353		$	(22,873	)	$	42,480
	Three Months Ended June 30, 2013									Six Months Ended June 30, 2013
(Dollars in thousands)	Before Tax			Tax Effect			Net of Tax			Before Tax			Tax Effect			Net of Tax
Unrealized appreciation (depreciation) ("URA(D)") on securities - temporary	$	(120,591	)	$	42,207		$	(78,385	)	$	(129,119	)	$	45,192		$	(83,928	)
URA(D) on securities - OTTI		(302	)		106			(196	)		(399	)		140			(259	)
Reclassification of net realized losses (gains) included in net income (loss)		(244	)		85			(158	)		(2,333	)		816			(1,516	)
Foreign currency translation adjustments		570			(199	)		371			(11,116	)		3,891			(7,225	)
Benefit plan actuarial net gain (loss)		-			-			-			-			-			-
Reclassification of amortization of net gain (loss) included in net income (loss)		2,070			(725	)		1,345			4,140			(1,449	)		2,691
Total other comprehensive income (loss)	$	(118,497	)	$	41,474		$	(77,023	)	$	(138,827	)	$	48,590		$	(90,237	)
(Some amounts may not reconcile due to rounding)

Reclassification From Accumulated Other Comprehensive Income

	Three months ended						Six months ended
	June 30,						June 30,						Affected line item within the statements of
AOCI component	2014			2013			2014			2013			operations and comprehensive income (loss)
(Dollars in thousands)
URA(D) on securities	$	1,127		$	(244	)	$	3,124		$	(2,333	)	Other net realized capital gains (losses)
		(270	)		85			(969	)		816		Income tax expense (benefit)
	$	857		$	(158	)	$	2,155		$	(1,516	)	Net income (loss)
Benefit plan net gain (loss)	$	1,185		$	2,070		$	2,371		$	4,140		Other underwriting expenses
		(415	)		(725	)		(830	)		(1,449	)	Income tax expense (benefit)
	$	770		$	1,345		$	1,541		$	2,691		Net income (loss)

Components Of Accumulated Other Comprehensive Income (Loss), Net Of Tax, In The Consolidated Balance Sheets

	At June 30,			At December 31,
(Dollars in thousands)	2014			2013
Beginning balance of URA (D) on securities	$	55,457		$	157,163
Current period change in URA (D) of investments - temporary		42,054			(101,447	)
Current period change in URA (D) of investments - non-credit OTTI		-			(259	)
Ending balance of URA (D) on securities		97,511			55,457
Beginning balance of foreign currency translation adjustments		71,087			90,215
Current period change in foreign currency translation adjustments		(1,115	)		(19,128	)
Ending balance of foreign currency translation adjustments		69,972			71,087
Beginning balance of benefit plan net gain (loss)		(38,896	)		(62,511	)
Current period change in benefit plan net gain (loss)		1,541			23,615
Ending balance of benefit plan net gain (loss)		(37,355	)		(38,896	)
Ending balance of accumulated other comprehensive income (loss)	$	130,128		$	87,648

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Related-Party Transactions (Premiums And Losses Ceded By The Company To Affiliate) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Bermuda Re [Member]
Related Party Transaction [Line Items]
Ceded written premiums	$ 524,057		$ 509,451		$ 1,042,074		$ 986,582
Ceded earned premiums	535,287		475,419		1,015,100		929,801
Ceded losses and LAE	296,322	[1]	266,455	[1]	534,823	[1]	497,986	[1]
Everest International [Member]
Related Party Transaction [Line Items]
Ceded written premiums	203		269		88		134
Ceded earned premiums	348		353		274		414
Ceded losses and LAE	260		(643)		2,144		(603)
Everest Canada [Member]
Related Party Transaction [Line Items]
Assumed written premiums	11,215		6,287		15,225		9,125
Assumed earned premiums	5,268		3,619		9,956		7,389
Assumed losses and LAE	3,091		2,048		6,383		4,274
Mt. Logan Re [Member]
Related Party Transaction [Line Items]
Ceded written premiums	20,228				48,594
Ceded earned premiums	22,680				40,517
Ceded losses and LAE	9,648				14,791
Assumed written premiums					9,919
Assumed earned premiums	2,605				4,711
Assumed losses and LAE

[1] (a) Ceded losses and LAE include the Mt. McKinley loss portfolio transfer that constitutes losses ceded under retroactive reinsurance and therefore, in accordance with FASB guidance, a deferred gain on retroactive reinsurance is reflected in other expenses on the consolidated statements of operations and comprehensive income (loss).

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Investments (Summary Of Changes In Net Unrealized Appreciation (Depreciation) For The Company's Investments) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Schedule of Available-for-sale Securities [Line Items]
Change in unrealized appreciation (depreciation), pre-tax	$ 30,704	$ (121,137)	$ 64,697	$ (131,851)
Deferred tax benefit (expense)	(10,745)	42,292	(22,643)	46,008
Deferred tax benefit (expense), other-than-temporary impairment		106		140
Change in unrealized appreciation (depreciation), net of deferred taxes, included in stockholder's equity	19,959	(78,739)	42,054	(85,703)
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Change in unrealized appreciation (depreciation), pre-tax	30,702	(120,835)	64,695	(131,453)
Fixed Maturity Securities, Other-Than-Temporary Impairment [Member]
Schedule of Available-for-sale Securities [Line Items]
Change in unrealized appreciation (depreciation), pre-tax		(302)		(399)
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Change in unrealized appreciation (depreciation), pre-tax	$ 2		$ 2	$ 1

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Related-Party Transactions

6 Months Ended

Jun. 30, 2014

Related-Party Transactions [Abstract]

Related-Party Transactions

14.  RELATED-PARTY TRANSACTIONS

Parent

Group's Board of Directors approved an amended share repurchase program authorizing Group and/or its subsidiary Holdings to purchase Group's common shares through open market transactions, privately negotiated transactions or both.  The table below represents the amendments to the share repurchase program for the common shares approved for repurchase.

	Common Shares
	Authorized for
Amendment Date	Repurchase
(Dollars in thousands)
09/21/2004	5,000,000
07/21/2008	5,000,000
02/24/2010	5,000,000
02/22/2012	5,000,000
05/15/2013	5,000,000
	25,000,000

As of June 30, 2014, Holdings held 9,719,971 common shares of Group, which it had purchased in the open market between February 1, 2007 and March 8, 2011.  The table below represents the total purchase price for these common shares purchased.

(Dollars in thousands)
Total purchase price	$	835,371

Holdings reports these purchases as other invested assets, fair value, in the consolidated balance sheets with changes in fair value re-measurement recorded in net realized capital gains (losses) in the consolidated statements of operations and comprehensive income (loss).  The following table presents the dividends received on these common shares that are reported as net investment income in the consolidated statements of operations and comprehensive income (loss) for the period indicated.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Dividends received	$	7,290	$	4,665	$	14,580	$	9,331

Outside Directors

During the normal course of business, the Company, through its affiliates, engages in insurance and brokerage and commission business transactions, with companies controlled by or affiliated with one or more of Group's outside directors.  Such transactions, individually and in the aggregate, are not material to the Company's financial condition, results of operation and cash flows.

Affiliated Companies

Everest Global Services, Inc. ("Global Services"), an affiliate of Holdings, provides centralized management and home office services, through a management agreement, to Holdings and other affiliated companies within Holdings' consolidated structure.  Services provided by Everest Global include executive managerial services, legal services, actuarial services, accounting services, information technology services and others.

The following table presents the expenses incurred by Holdings from services provided by Everest Global for the periods indicated.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Expenses incurred	$	17,676	$	18,214	$	33,519	$	36,769

Affiliates

The table below represents affiliated quota share reinsurance agreements ("whole account quota share") for all new and renewal business for the indicated coverage period:

(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
01/01/2011-12/31/2011		Everest Re		50.0	%	Bermuda Re	property / casualty business		150,000			300,000
01/01/2012		Everest Re		50.0	%	Bermuda Re	property / casualty business		100,000			200,000
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	(3)		-
01/01/2011-12/31/2011		Everest Re- Canadian Branch		60.0	%	Bermuda Re	property business		350,000	(3)		-
01/01/2012-12/31/2012		Everest Re- Canadian Branch		75.0	%	Bermuda Re	property / casualty business		206,250	(3)		412,500	(3)
01/01/2013-12/31/2013		Everest Re- Canadian Branch		75.0	%	Bermuda Re	property / casualty business		150,000	(3)		412,500	(3)
01/01/2014		Everest Re- Canadian Branch		75.0	%	Bermuda Re	property / casualty business		262,500	(3)		412,500	(3)
01/01/2012		Everest Canada		80.0	%	Everest Re- Canadian Branch	property business		-			-
(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.
(3)	Amounts shown are Canadian dollars.

For premiums earned and losses incurred for the period January 1, 2002 through December 31, 2002, Everest Re, Everest National Insurance Company and Everest Security Insurance Company entered into an Excess of Loss Reinsurance Agreement with Bermuda Re, covering workers' compensation losses occurring on and after January 1, 2002, as respect to new, renewal and in force policies effective on that date through December 31, 2002.  This agreement was commuted as of September 30, 2013.  The table below represents Bermuda Re's liability limits for any losses per one occurrence.

	Liability Limits
(Dollars in thousands)	Exceeding		Not to Exceed
Losses per one occurrence	$	100,000	$	150,000

The table below represents loss portfolio transfer reinsurance agreements whereby net insurance exposures and reserves were transferred to an affiliate.

(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

The following tables summarize the premiums and losses ceded by the Company to Bermuda Re and Everest International, respectively, and premiums and losses assumed by the Company from Everest Canada for the periods indicated:

	Three Months Ended				Six Months Ended
Bermuda Re	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Ceded written premiums	$	524,057	$	509,451	$	1,042,074	$	986,582
Ceded earned premiums		535,287		475,419		1,015,100		929,801
Ceded losses and LAE (a)		296,322		266,455		534,823		497,986

	Three Months Ended					Six Months Ended
Everest International	June 30,					June 30,
(Dollars in thousands)	2014		2013			2014		2013
Ceded written premiums	$	203	$	269		$	88	$	134
Ceded earned premiums		348		353			274		414
Ceded losses and LAE		260		(643	)		2,144		(603	)

	Three Months Ended				Six Months Ended
Everest Canada	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Assumed written premiums	$	11,215	$	6,287	$	15,225	$	9,125
Assumed earned premiums		5,268		3,619		9,956		7,389
Assumed losses and LAE		3,091		2,048		6,383		4,274

(a) Ceded losses and LAE include the Mt. McKinley loss portfolio transfer that constitutes losses ceded under retroactive reinsurance and therefore, in accordance with FASB guidance, a deferred gain on retroactive reinsurance is reflected in other expenses on the consolidated statements of operations and comprehensive income (loss).

Everest Re sold net assets of its UK branch to Bermuda Re and provided Bermuda Re with a reserve indemnity agreement allowing for indemnity payments of up to 90% of £25.0 million of the excess of 2002 and prior reserves, provided that any recognition of profit from the reserves for 2002 and prior underwriting years is taken into account.  The limit available under this agreement was fully exhausted at December 31, 2004.

Effective February 27, 2013, Group established a new subsidiary, Mt. Logan Re, which is a Class 3 insurer based in Bermuda.  Effective July 1, 2013, Mt. Logan Re established separate segregated accounts for its business activity, which will invest in a diversified set of catastrophe exposures.

The following table summarizes the premiums and losses that are ceded by the Company to Mt. Logan Re and assumed by the Company from Mt. Logan Re.

	Three Months Ended				Six Months Ended
Mt. Logan Re	June 30,				June 30,
(Dollars in thousands)	2014		2013		2014		2013
Ceded written premiums	$	20,228	$	-	$	48,594	$	-
Ceded earned premiums		22,680		-		40,517		-
Ceded losses and LAE		9,648		-		14,791		-
Assumed written premiums		-		-		9,919		-
Assumed earned premiums		2,605		-		4,711		-
Assumed losses and LAE		-		-		-		-