Segment Reporting

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segment Reporting

12.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 directly and through general agents, brokers and surplus lines brokers within the U.S.

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

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

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

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

	Three Months Ended				Six Months Ended
U.S. Reinsurance	June 30,				June 30,
(Dollars in thousands)	2015		2014		2015		2014
Gross written premiums	$	451,059	$	453,115	$	1,013,706	$	983,416
Net written premiums		184,707		215,091		425,401		466,612
Premiums earned	$	235,426	$	246,265	$	490,838	$	464,456
Incurred losses and LAE		116,473		129,676		227,928		245,660
Commission and brokerage		34,703		53,380		93,067		93,516
Other underwriting expenses		11,807		11,453		23,336		20,935
Underwriting gain (loss)	$	72,443	$	51,756	$	146,507	$	104,345

	Three Months Ended				Six Months Ended
International	June 30,				June 30,
(Dollars in thousands)	2015		2014		2015		2014
Gross written premiums	$	311,653	$	466,008	$	645,268	$	794,886
Net written premiums		147,399		147,210		269,080		288,667
Premiums earned	$	157,922	$	147,728	$	298,621	$	292,732
Incurred losses and LAE		110,027		88,888		211,472		172,463
Commission and brokerage		31,243		27,412		65,242		56,581
Other underwriting expenses		8,049		8,093		16,164		15,930
Underwriting gain (loss)	$	8,603	$	23,335	$	5,743	$	47,758

	Three Months Ended						Six Months Ended
Insurance	June 30,						June 30,
(Dollars in thousands)	2015			2014			2015			2014
Gross written premiums	$	326,729		$	305,697		$	657,230		$	530,973
Net written premiums		140,358			130,426			286,410			237,152
Premiums earned	$	128,076		$	126,743		$	253,027		$	233,993
Incurred losses and LAE		96,379			102,953			192,359			181,440
Commission and brokerage		7,007			4,530			11,175			11,319
Other underwriting expenses		31,717			27,612			60,616			49,544
Underwriting gain (loss)	$	(7,027	)	$	(8,352	)	$	(11,123	)	$	(8,310	)

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)	2015			2014			2015			2014
Underwriting gain (loss)	$	74,019		$	66,739		$	141,127		$	143,793
Net investment income		70,925			68,636			143,506			132,423
Net realized capital gains (losses)		51,225			125,114			72,521			121,064
Corporate expense		(1,785	)		524			(3,394	)		(778	)
Interest, fee and bond issue cost amortization expense		(8,858	)		(8,811	)		(17,717	)		(16,247	)
Other income (expense)		12,289			(8,782	)		28,122			(11,837	)
Income (loss) before taxes	$	197,815		$	243,420		$	364,165		$	368,418

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)	2015		2014		2015		2014
Canada	$	30,160	$	36,830	$	53,672	$	74,489

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