Segment Reporting

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Reporting

17.  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 mainly 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 periods indicated:

U.S. Reinsurance	Years Ended December 31,
(Dollars in thousands)	2015		2014		2013
Gross written premiums	$	2,147,893	$	2,154,529	$	1,826,044
Net written premiums		899,918		977,858		909,557
Premiums earned	$	951,457	$	988,315	$	842,341
Incurred losses and LAE		413,292		545,862		424,184
Commission and brokerage		198,983		201,912		159,747
Other underwriting expenses		50,089		45,583		47,177
Underwriting gain (loss)	$	289,093	$	194,958	$	211,233

International	Years Ended December 31,
(Dollars in thousands)	2015		2014		2013
Gross written premiums	$	1,373,978	$	1,630,381	$	1,370,615
Net written premiums		562,691		612,243		610,084
Premiums earned	$	581,216	$	600,964	$	591,695
Incurred losses and LAE		394,819		358,038		315,923
Commission and brokerage		121,158		119,655		114,331
Other underwriting expenses		34,303		34,603		33,910
Underwriting gain (loss)	$	30,936	$	88,668	$	127,531

Insurance	Years Ended December 31,
(Dollars in thousands)	2015			2014			2013
Gross written premiums	$	1,473,760		$	1,180,384		$	1,240,809
Net written premiums		630,674			516,873			597,736
Premiums earned	$	611,087		$	524,447		$	572,325
Incurred losses and LAE		511,450			450,193			532,049
Commission and brokerage		(5,072	)		17,835			19,844
Other underwriting expenses		130,427			111,846			112,412
Underwriting gain (loss)	$	(25,718	)	$	(55,427	)	$	(91,980	)

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

	Years Ended December 31,
(Dollars in thousands)	2015			2014			2013
Underwriting gain (loss)	$	294,311		$	228,199		$	246,784
Net investment income		273,253			290,310			296,996
Net realized capital gains (losses)		50,335			206,679			723,149
Corporate expense		(7,179	)		(7,252	)		(8,262	)
Interest, fee and bond issue cost amortization expense		(35,434	)		(37,970	)		(45,452	)
Other income (expense)		29,256			(22,278	)		(7,714	)
Income (loss) before taxes	$	604,542		$	657,688		$	1,205,501

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

	Years Ended December 31,
(Dollars in thousands)	2015		2014		2013
Canada gross written premiums	$	114,859	$	159,451	$	169,148

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

Approximately 16.3%, 17.6% and 19.6% of the Company's gross written premiums in 2015, 2014 and 2013, respectively, were sourced through the Company's largest intermediary.