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: September 30, 2016 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 November 1, 2016
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 September 30, 2016 (unaudited) and
		December 31, 2015	1
	Consolidated Statements of Operations and Comprehensive Income (Loss) for the
		three and nine months ended September 30, 2016 and 2015 (unaudited)	2
	Consolidated Statements of Changes in Stockholder's Equity for the three and nine
		months ended September 30, 2016 and 2015 (unaudited)	3
	Consolidated Statements of Cash Flows for the nine months ended
		September 30, 2016 and 2015 (unaudited)	4
	Notes to Consolidated Interim Financial Statements (unaudited)		5
Item 2.	Management's Discussion and Analysis of Financial Condition and
		Results of Operation	28
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		44
Item 4.	Controls and Procedures		44

PART II

OTHER INFORMATION

Item 1.	Legal Proceedings	45
Item 1A.	Risk Factors	45
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	45
Item 3.	Defaults Upon Senior Securities	45
Item 4.	Mine Safety Disclosures	45
Item 5.	Other Information	45
Item 6.	Exhibits	46

EVEREST REINSURANCE HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

	September 30,		December 31,
(Dollars in thousands, except par value per share)	2016		2015
	(unaudited)
ASSETS:
Fixed maturities - available for sale, at market value	$	6,014,941	$	5,356,477
(amortized cost: 2016, $5,862,000; 2015, $5,335,472)
Fixed maturities - available for sale, at fair value		3,982		2,102
Equity securities - available for sale, at fair value		961,115		1,215,377
Short-term investments		188,359		563,536
Other invested assets (cost: 2016, $615,735 2015, $450,154)		615,735		450,154
Other invested assets, at fair value		1,725,367		1,773,214
Cash		285,178		155,429
Total investments and cash		9,794,677		9,516,289
Note receivable - affiliated		250,000		250,000
Accrued investment income		47,699		41,727
Premiums receivable		1,288,137		1,129,656
Reinsurance receivables - unaffiliated		827,281		716,982
Reinsurance receivables - affiliated		3,771,322		3,742,105
Funds held by reinsureds		189,984		176,712
Deferred acquisition costs		77,725		92,651
Prepaid reinsurance premiums		869,282		772,686
Other assets		318,615		256,395
TOTAL ASSETS	$	17,434,722	$	16,695,203
LIABILITIES:
Reserve for losses and loss adjustment expenses	$	8,306,404	$	7,940,720
Unearned premium reserve		1,448,915		1,349,799
Funds held under reinsurance treaties		113,566		101,531
Losses in the course of payment		127,976		125,592
Commission reserves		71,518		51,873
Other net payable to reinsurers		1,020,995		1,225,260
4.868% Senior notes due 6/1/2044		396,684		396,594
6.6% Long term notes due 5/1/2067		236,438		236,364
Accrued interest on debt and borrowings		12,341		3,537
Income taxes		163,956		68,024
Unsettled securities payable		66,976		15,040
Other liabilities		227,998		249,658
Total liabilities		12,193,767		11,763,992
Commitments and Contingencies (Note 5)
STOCKHOLDER'S EQUITY:
Common stock, par value: $0.01; 3,000 shares authorized;
1,000 shares issued and outstanding (2016 and 2015)		-		-
Additional paid-in capital		384,974		374,789
Accumulated other comprehensive income (loss), net of deferred income tax expense
(benefit) of $29,808 at 2016 and ($33,458) at 2015		55,349		(62,136	)
Retained earnings		4,800,632		4,618,558
Total stockholder's equity		5,240,955		4,931,211
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$	17,434,722	$	16,695,203
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						Nine Months Ended
	September 30,						September 30,
(Dollars in thousands)	2016			2015			2016			2015
	(unaudited)						(unaudited)
REVENUES:
Premiums earned	$	556,653		$	546,050		$	1,527,433		$	1,588,536
Net investment income		64,570			63,363			196,887			206,869
Net realized capital gains (losses):
Other-than-temporary impairments on fixed maturity securities		(836	)		(10,502	)		(25,242	)		(43,433	)
Other-than-temporary impairments on fixed maturity securities
transferred to other comprehensive income (loss)		-			-			-			-
Realized gain(loss) on sale of subsidiary		(28,032	)		94,704			(28,032	)		94,704
Other net realized capital gains (losses)		(21,195	)		(205,897	)		(34,001	)		(100,445	)
Total net realized capital gains (losses)		(50,063	)		(121,695	)		(87,275	)		(49,174	)
Other income (expense)		(13,208	)		10,828			(10,806	)		38,950
Total revenues		557,952			498,546			1,626,239			1,785,181
CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses		301,603			370,754			936,201			1,002,513
Commission, brokerage, taxes and fees		85,563			72,151			226,511			241,635
Other underwriting expenses		64,149			56,953			181,706			157,069
Corporate expenses		1,835			1,637			6,181			5,031
Interest, fee and bond issue cost amortization expense		8,859			8,859			26,576			26,576
Total claims and expenses		462,009			510,354			1,377,175			1,432,824
INCOME (LOSS) BEFORE TAXES		95,943			(11,808	)		249,064			352,357
Income tax expense (benefit)		21,145			(7,149	)		66,990			107,306
NET INCOME (LOSS)	$	74,798		$	(4,659	)	$	182,074		$	245,051
Other comprehensive income (loss), net of tax:
Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period		3,808			(29,878	)		62,672			(49,866	)
Less: reclassification adjustment for realized losses (gains) included in net income (loss)		(2,767	)		11,625			23,085			48,951
Total URA(D) on securities arising during the period		1,041			(18,253	)		85,757			(915	)
Foreign currency translation adjustments		(2,642	)		(27,473	)		27,779			(44,636	)
Benefit plan actuarial net gain (loss) for the period		-			-			-			-
Reclassification adjustment for amortization of net (gain) loss included in net income (loss)		1,268			1,556			3,949			4,769
Total benefit plan net gain (loss) for the period		1,268			1,556			3,949			4,769
Total other comprehensive income (loss), net of tax		(333	)		(44,170	)		117,485			(40,782	)
COMPREHENSIVE INCOME (LOSS)	$	74,465		$	(48,829	)	$	299,559		$	204,269
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						Nine Months Ended
	September 30,						September 30,
(Dollars in thousands, except share amounts)	2016			2015			2016			2015
	(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	$	382,537		$	369,284		$	374,789		$	362,293
Share-based compensation plans		2,437			3,282			10,185			10,273
Balance, end of period		384,974			372,566			384,974			372,566
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS),
NET OF DEFERRED INCOME TAXES:
Balance, beginning of period		55,682			7,907			(62,136	)		4,519
Net increase (decrease) during the period		(333	)		(44,170	)		117,485			(40,782	)
Balance, end of period		55,349			(36,263	)		55,349			(36,263	)
RETAINED EARNINGS:
Balance, beginning of period		4,725,834			4,455,615			4,618,558			4,205,905
Net income (loss)		74,798			(4,659	)		182,074			245,051
Balance, end of period		4,800,632			4,450,956			4,800,632			4,450,956
TOTAL STOCKHOLDER'S EQUITY, END OF PERIOD	$	5,240,955		$	4,787,259		$	5,240,955		$	4,787,259
The accompanying notes are an integral part of the consolidated financial statements.

3

EVEREST REINSURANCE HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Nine Months Ended
	September 30,
(Dollars in thousands)	2016			2015
	(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	182,074		$	245,051
Adjustments to reconcile net income to net cash provided by operating activities:
Decrease (increase) in premiums receivable		(155,717	)		(225,922	)
Decrease (increase) in funds held by reinsureds, net		(948	)		589
Decrease (increase) in reinsurance receivables		(120,745	)		(169,328	)
Decrease (increase) in income taxes		33,279			(212	)
Decrease (increase) in prepaid reinsurance premiums		(94,400	)		(44,177	)
Increase (decrease) in reserve for losses and loss adjustment expenses		322,226			107,006
Increase (decrease) in unearned premiums		94,847			34,627
Increase (decrease) in other net payable to reinsurers		(209,260	)		(50,813	)
Increase (decrease) in losses in course of payment		1,860			133,244
Change in equity adjustments in limited partnerships		(17,067	)		(16,409	)
Distribution of limited partnership income		31,739			36,883
Change in other assets and liabilities, net		(124,955	)		(2,719	)
Non-cash compensation expense		7,453			6,303
Amortization of bond premium (accrual of bond discount)		13,754			13,978
Amortization of underwriting discount on senior notes		3			3
Net realized capital (gains) losses		87,275			49,174
Net cash provided by (used in) operating activities		51,418			117,278
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from fixed maturities matured/called - available for sale, at market value		572,224			696,268
Proceeds from fixed maturities sold - available for sale, at market value		433,655			418,284
Proceeds from fixed maturities sold - available for sale, at fair value		1,587			1,824
Proceeds from equity securities sold - available for sale, at market value		-			16
Proceeds from equity securities sold - available for sale, at fair value		531,894			442,276
Proceeds from sale of subsidiary (net of cash disposed)		47,721			3,934
Distributions from other invested assets		1,119,428			36,130
Cost of fixed maturities acquired - available for sale, at market value		(1,516,092	)		(1,403,187	)
Cost of fixed maturities acquired - available for sale, at fair value		(3,940	)		(234	)
Cost of equity securities acquired - available for sale, at fair value		(253,041	)		(442,306	)
Cost of other invested assets acquired		(1,299,682	)		(49,575	)
Net change in short-term investments		376,832			176,876
Net change in unsettled securities transactions		40,771			(12,069	)
Net cash provided by (used in) investing activities		51,357			(131,763	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Tax benefit from share-based compensation		2,732			3,970
Net cash provided by (used in) financing activities		2,732			3,970
EFFECT OF EXCHANGE RATE CHANGES ON CASH		24,242			(37,328	)
Net increase (decrease) in cash		129,749			(47,843	)
Cash, beginning of period		155,429			323,975
Cash, end of period	$	285,178		$	276,132
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid (recovered)	$	30,877		$	104,727
Interest paid		17,608			17,608
The accompanying notes are an integral part of the consolidated financial statements.

4

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

For the Three and Nine Months Ended September 30, 2016 and 2015

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) and the "Company" means Holdings and its subsidiaries.

During the third quarter of 2016, the Company established domestic subsidiaries, Everest Premier Insurance Company ("Everest Premier") and Everest Denali Insurance Company ("Everest Denali"), which will be used in the continued expansion of the Insurance operations.

Effective August 24, 2016, the Company sold its wholly-owned subsidiary, Heartland Crop Insurance Company ("Heartland"), a managing agent for crop insurance, to CGB Diversified Services, Inc. ("CGB"). The operating results of Heartland for the period owned are included within the Company's financial statements.

Effective July 13, 2015, the Company sold all of the outstanding shares of capital stock of a wholly-owned subsidiary entity, Mt. McKinley Insurance Company ("Mt. McKinley"), to Clearwater Insurance Company. The operating results of Mt. McKinley for the three and nine months ended September 30, 2015 are included within the Company's financial statements.

2.BASIS OF PRESENTATION

The unaudited consolidated financial statements of the Company for the three and nine months ended September 30, 2016 and 2015 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, 2015 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 nine months ended September 30, 2016 and 2015 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, 2015, 2014 and 2013 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 2016 presentation.

Application of Recently Issued Accounting Standard Changes.

Disclosures about Short-Duration Contracts. In May 2015, the FASB issued ASU 2015-09, authoritative guidance regarding required disclosures associated with short duration insurance contracts.  The new disclosure requirements focus on information about initial claim estimates and subsequent claim estimate adjustment, methodologies in estimating claims and the timing, frequency and severity of claims related to short duration insurance contracts. This guidance is effective for annual reporting periods beginning after December 15, 2015 and interim reporting periods beginning after December 15, 2016.  Therefore, the initial presentation of this guidance in the Company's financial statements and footnotes will be for its 10-K filing as of December 31, 2016. The Company does not anticipate that it will have a significant impact on its financial statements.

5

Debt Issuance Costs. In April 2015, The FASB issued ASU 2015–03, authoritative guidance on the presentation of debt issuance costs.  This guidance requires that debt issuance costs be presented within the balance sheet as a reduction of the carrying value of the debt liability, rather than as a separate asset.  This guidance is effective for annual reporting periods beginning after December 15, 2015 and related interim reporting periods.  Based upon this guidance, the Company has adjusted prior financial statements and footnotes to conform with this new presentation.

Consolidation. In February 2015, the FASB issued ASU 2015-02, authoritative guidance regarding consolidation of reporting entities.  The new guidance focuses on the required evaluation of whether certain legal entities should be consolidated.  This guidance is effective for annual and interim reporting periods beginning after December 15, 2015. The Company has determined that the guidance will not have a significant impact on its financial statements.

3.  INVESTMENTS

The amortized cost, market value and gross unrealized appreciation and depreciation of available for sale, fixed maturity, equity security investments, carried at market value and other-than-temporary impairments ("OTTI") in accumulated other comprehensive income ("AOCI") are as follows for the periods indicated:

	At September 30, 2016
	Amortized		Unrealized		Unrealized			Market		OTTI in AOCI
(Dollars in thousands)	Cost		Appreciation		Depreciation			Value		(a)
Fixed maturity securities
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	423,167	$	6,471	$	(470	)	$	429,168	$	-
Obligations of U.S. states and political subdivisions		725,149		40,657		(802	)		765,004		-
Corporate securities		2,192,089		57,124		(10,576	)		2,238,637		3,802
Asset-backed securities		167,721		1,316		(12	)		169,025		-
Mortgage-backed securities
Commercial		75,965		1,567		(35	)		77,497		-
Agency residential		750,339		7,983		(875	)		757,447		-
Non-agency residential		89		14		-			103		-
Foreign government securities		530,381		29,667		(6,127	)		553,921		-
Foreign corporate securities		997,100		34,616		(7,577	)		1,024,139		327
Total fixed maturity securities	$	5,862,000	$	179,415	$	(26,474	)	$	6,014,941	$	4,129
Equity securities	$	-	$	-	$	-		$	-	$	-

	At December 31, 2015
	Amortized		Unrealized		Unrealized			Market		OTTI in AOCI
(Dollars in thousands)	Cost		Appreciation		Depreciation			Value		(a)
Fixed maturity securities
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	329,281	$	2,422	$	(718	)	$	330,985	$	-
Obligations of U.S. states and political subdivisions		669,945		34,020		(890	)		703,075		-
Corporate securities		2,011,997		27,286		(70,725	)		1,968,558		(86	)
Asset-backed securities		145,755		290		(1,063	)		144,982		-
Mortgage-backed securities
Commercial		61,527		1,430		(511	)		62,446		-
Agency residential		714,907		3,994		(6,603	)		712,298		-
Non-agency residential		126		24		-			150		-
Foreign government securities		447,244		24,255		(8,425	)		463,074		-
Foreign corporate securities		954,690		27,616		(11,397	)		970,909		17
Total fixed maturity securities	$	5,335,472	$	121,337	$	(100,332	)	$	5,356,477	$	(69	)

^(a)  Represents the amount of OTTI recognized in AOCI.  Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date.

6

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 September 30, 2016				At December 31, 2015
	Amortized		Market		Amortized		Market
(Dollars in thousands)	Cost		Value		Cost		Value
Fixed maturity securities – available for sale
Due in one year or less	$	350,845	$	349,366	$	330,029	$	330,509
Due after one year through five years		2,916,564		2,967,946		2,617,079		2,618,056
Due after five years through ten years		803,666		833,389		870,266		856,230
Due after ten years		796,811		860,168		595,783		631,806
Asset-backed securities		167,721		169,025		145,755		144,982
Mortgage-backed securities
Commercial		75,965		77,497		61,527		62,446
Agency residential		750,339		757,447		714,907		712,298
Non-agency residential		89		103		126		150
Total fixed maturity securities	$	5,862,000	$	6,014,941	$	5,335,472	$	5,356,477

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 Eded						Nine Months Eded
	September 30,						September 30,
(Dollars in thousands)	2016			2015			2016			2015
Increase (decrease) during the period between the market value and cost
of investments carried at market value, and deferred taxes thereon:
Fixed maturity securities	$	4,047		$	(28,103	)	$	127,736		$	(11,164	)
Fixed maturity securities, other-than-temporary impairment		(2,444	)		22			4,199			9,757
Equity Securities		-			-			-			(1	)
Change in unrealized  appreciation (depreciation), pre-tax		1,603			(28,081	)		131,935			(1,408	)
Deferred tax benefit (expense)		(1,418	)		9,835			(44,709	)		3,907
Deferred tax benefit (expense), other-than-temporary impairment		856			(7	)		(1,469	)		(3,414	)
Change in unrealized appreciation (depreciation),
net of deferred taxes, included in stockholder's equity	$	1,041		$	(18,253	)	$	85,757		$	(915	)

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.

7

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 September 30, 2016 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	$	42,928	$	(470	)	$	-	$	-		$	42,928	$	(470	)
Obligations of U.S. states and political subdivisions		72,100		(391	)		633		(411	)		72,733		(802	)
Corporate securities		185,486		(2,571	)		185,850		(8,005	)		371,336		(10,576	)
Asset-backed securities		-		-			17,850		(12	)		17,850		(12	)
Mortgage-backed securities
Commercial		1,511		(3	)		3,282		(32	)		4,793		(35	)
Agency residential		48,246		(106	)		99,400		(769	)		147,646		(875	)
Non-agency residential		-		-			-		-			-		-
Foreign government securities		14,728		(261	)		61,698		(5,866	)		76,426		(6,127	)
Foreign corporate securities		83,716		(2,070	)		69,922		(5,507	)		153,638		(7,577	)
Total fixed maturity securities	$	448,715	$	(5,872	)	$	438,635	$	(20,602	)	$	887,350	$	(26,474	)
Equity securities		-		-			-		-			-		-
Total	$	448,715	$	(5,872	)	$	438,635	$	(20,602	)	$	887,350	$	(26,474	)

	Duration of Unrealized Loss at September 30, 2016 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	$	14,922	$	(259	)	$	23,232	$	(3,449	)	$	38,154	$	(3,708	)
Due in one year through five years		185,270		(3,363	)		246,906		(13,503	)		432,176		(16,866	)
Due in five years through ten years		119,725		(1,682	)		46,244		(2,792	)		165,969		(4,474	)
Due after ten years		79,041		(459	)		1,721		(45	)		80,762		(504	)
Asset-backed securities		-		-			17,850		(12	)		17,850		(12	)
Mortgage-backed securities		49,757		(109	)		102,682		(801	)		152,439		(910	)
Total fixed maturity securities	$	448,715	$	(5,872	)	$	438,635	$	(20,602	)	$	887,350	$	(26,474	)

The aggregate market value and gross unrealized losses related to investments in an unrealized loss position at September 30, 2016 were $887,350 thousand and $26,474 thousand, respectively.  The market value of securities for the single issuer whose securities comprised the largest unrealized loss position at September 30, 2016, 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 $5,872 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.  The majority of these unrealized losses are attributable to net unrealized foreign exchange losses, $5,564 thousand, as the U.S. dollar has strengthened against other currencies.  The $20,602 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

8

corporate securities and foreign government securities.  The majority of these unrealized losses are attributable to net unrealized foreign exchange losses, $19,030 thousand, as the U.S. dollar has strengthened against other currencies.  The Company did not have any sub-prime or alt-A loans with gross unrealized depreciation at September 30, 2016.  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, 2015 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	$	216,352	$	(712	)	$	692	$	(6	)	$	217,044	$	(718	)
Obligations of U.S. states and political subdivisions		6,434		(84	)		4,917		(806	)		11,351		(890	)
Corporate securities		866,715		(49,034	)		307,215		(21,691	)		1,173,930		(70,725	)
Asset-backed securities		102,506		(791	)		28,048		(272	)		130,554		(1,063	)
Mortgage-backed securities
Commercial		26,483		(511	)		-		-			26,483		(511	)
Agency residential		320,285		(3,094	)		150,095		(3,509	)		470,380		(6,603	)
Non-agency residential		-		-			-		-			-		-
Foreign government securities		61,498		(2,182	)		77,911		(6,243	)		139,409		(8,425	)
Foreign corporate securities		324,904		(6,289	)		76,951		(5,108	)		401,855		(11,397	)
Total fixed maturity securities	$	1,925,177	$	(62,697	)	$	645,829	$	(37,635	)	$	2,571,006	$	(100,332	)

	Duration of Unrealized Loss at December 31, 2015 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	$	21,780	$	(1,577	)	$	12,212	$	(1,171	)	$	33,992	$	(2,748	)
Due in one year through five years		1,023,437		(23,255	)		347,203		(21,582	)		1,370,640		(44,837	)
Due in five years through ten years		394,978		(31,423	)		99,335		(10,131	)		494,313		(41,554	)
Due after ten years		35,708		(2,046	)		8,936		(970	)		44,644		(3,016	)
Asset-backed securities		102,506		(791	)		28,048		(272	)		130,554		(1,063	)
Mortgage-backed securities		346,768		(3,605	)		150,095		(3,509	)		496,863		(7,114	)
Total fixed maturity securities	$	1,925,177	$	(62,697	)	$	645,829	$	(37,635	)	$	2,571,006	$	(100,332	)

The aggregate market value and gross unrealized losses related to investments in an unrealized loss position at December 31, 2015 were $2,571,006 thousand and $100,332 thousand, respectively.  The market value of securities for the single issuer whose securities comprised the largest unrealized loss position at December 31, 2015, did not exceed 0.07% 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 $62,697 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, agency residential mortgage-backed securities and

9

foreign government securities.  The majority of these unrealized losses are attributable to unrealized losses in the energy sector, $35,978 thousand, as falling oil prices disrupted the market values for this sector, particularly for oil exploration, production and servicing companies and unrealized foreign exchange losses, $6,090 thousand, as the U.S. dollar has strengthened against other currencies. The $37,635 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 and agency residential mortgage-backed securities. The majority of these unrealized losses are attributable to unrealized foreign exchange losses, $14,807 thousand, as the U.S. dollar has strengthened against other currencies and unrealized losses in the energy sector, $6,959 thousand, as falling oil prices disrupted the market values for this sector, particularly for oil exploration, production and servicing companies. The Company did not have any sub-prime or alt-A loans with gross unrealized depreciation at December 31, 2015.  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, as of September 30, 2016, and December 31, 2015, were comprised of preferred shares held in Everest Preferred International Holdings ("Preferred Holdings"), an affiliated company.

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Dollars in thousands)	2016			2015			2016			2015
Fixed maturities	$	44,810		$	46,414		$	134,931		$	140,829
Equity securities		7,870			8,004			25,752			26,638
Short-term investments and cash		296			220			851			705
Other invested assets
Limited partnerships		6,020			3,021			17,698			17,676
Dividends from Parent's shares		-			9,234			-			27,702
Dividends from preferred shares of affiliate		7,758			-			23,274			-
Other		522			(242	)		339			1,366
Gross investment income before adjustments		67,276			66,651			202,845			214,916
Funds held interest income (expense)		1,090			940			4,718			4,326
Interest income from Parent		1,075			1,075			3,225			3,225
Gross investment income		69,441			68,666			210,788			222,467
Investment expenses		(4,871	)		(5,303	)		(13,901	)		(15,598	)
Net investment income	$	64,570		$	63,363		$	196,887		$	206,869
(Some amounts may not reconcile due to rounding.)

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 $279,126 thousand in limited partnerships at September 30, 2016.  These commitments will be funded when called in accordance with the partnership agreements, which have investment periods that expire, unless extended, through 2020.

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Dollars in thousands)	2016			2015			2016			2015
Fixed maturity securities, market value:
Other-than-temporary impairments	$	(836	)	$	(10,502	)	$	(25,242	)	$	(43,433	)
Gains (losses) from sales		4,338			(6,636	)		(10,273	)		(30,362	)
Fixed maturity securities, fair value:
Gains (losses) from sales		(1	)		(17	)		(1,855	)		25
Gains (losses) from fair value adjustments		42			-			1,381			56
Equity securities, market value:
Gains (losses) from sales		-			-			-			1
Equity securities, fair value:
Gains (losses) from sales		5,452			(13,656	)		(10,134	)		(14,010	)
Gains (losses) from fair value adjustments		16,063			(101,322	)		34,725			(85,710	)
Other invested assets, fair value:
Gains (losses) from fair value adjustments		(47,090	)		(84,272	)		(47,846	)		29,549
Gain (loss) on sale of subsidiary		(28,032	)		94,704			(28,032	)		94,704
Short-term investment gains (losses)		1			6			1			6
Total net realized capital gains (losses)	$	(50,063	)	$	(121,695	)	$	(87,275	)	$	(49,174	)

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						Nine Months Ended
	September 30,						September 30,
(Dollars in thousands)	2016			2015			2016			2015
Proceeds from sales of fixed maturity securities	$	136,767		$	130,284		$	435,242		$	420,108
Gross gains from sales		6,257			1,401			13,875			9,039
Gross losses from sales		(1,920	)		(8,054	)		(26,003	)		(39,376	)
Proceeds from sales of equity securities	$	109,914		$	138,799		$	531,894		$	442,292
Gross gains from sales		6,874			5,241			13,509			17,655
Gross losses from sales		(1,422	)		(18,896	)		(23,643	)		(31,664	)

4.  FAIR VALUE

GAAP guidance regarding fair value measurements address how companies should measure fair value when they are required to use fair value measures for recognition or disclosure purposes under GAAP and provides a common definition of fair value to be used throughout GAAP.  It defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly fashion between market participants at the measurement date.  In addition, it establishes a three-level valuation hierarchy for the disclosure of fair value measurements.  The valuation hierarchy is based on the transparency of inputs to the valuation of an asset or liability.  The level in the hierarchy within which a given fair value measurement falls is determined based on the lowest level input that is significant to the measurement, with Level 1 being the highest priority and Level 3 being the lowest priority.

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The levels in the hierarchy are defined as follows:

Level 1: Inputs to the valuation methodology are observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in an active market;

Level 2: Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument;

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

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.  Due to the unavailability of prices for twenty eight private placement securities, the Company valued the twenty eight securities at $59,289 thousand at September 30, 2016.  Due to the unavailability of prices for two private placement securities, the Company valued the two securities at $3,593 thousand at December 31, 2015.

The Company internally manages a small public equity portfolio which had a fair value at September 30, 2016 and December 31, 2015 of $135,958 thousand and $131,219 thousand, respectively, and all prices were obtained from publically published sources.

Equity securities denominated in U.S. currency with quoted prices in active markets for identical assets are categorized as level 1 since the quoted prices are directly observable.  Equity securities traded on foreign exchanges are categorized as level 2 due to the added input of a foreign exchange conversion rate to determine fair or market value.  The Company uses foreign currency exchange rates published by nationally recognized sources.

All categories of fixed maturity securities listed in the tables below are generally categorized as level 2, 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.  For foreign government securities and foreign corporate securities, the fair values provided by the third party pricing services in local currencies, and where applicable, are converted to U.S. dollars using currency exchange rates from nationally recognized sources.

12

The fixed maturities with fair values categorized as level 3 result when prices are not available from the nationally recognized pricing services.  The asset managers will then obtain non-binding price quotes for the securities from brokers. 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.  If the broker quotes are for foreign denominated securities, the quotes are converted to U.S. dollars using currency exchange rates from nationally recognized sources. In limited circumstances when broker prices are not available for private placements, the Company will value the securities using comparable market information.

The composition and valuation inputs for the presented fixed maturities categories are as follows:

· U.S. Treasury securities and obligations of U.S. government agencies and corporations are primarily comprised of U.S. Treasury bonds and the fair value is based on observable market inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields;

· Obligations of U.S. states and political subdivisions are comprised of state and municipal bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads;

· Corporate securities are primarily comprised of U.S. corporate and public utility bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads;

· Asset-backed and mortgage-backed securities fair values are based on observable inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields and cash flow models using observable inputs such as prepayment speeds, collateral performance and default spreads;

· Foreign government securities are comprised of global non-U.S. sovereign bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source;

· Foreign corporate securities are comprised of global non-U.S. corporate bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source.

Other invested assets, at fair value, was categorized as Level 3 at September 30, 2016 and December 31, 2015, since it represented a privately placed convertible preferred stock issued by an affiliate.  The stock was received in exchange for shares of the Company's parent, which were valued on a public securities exchange on December 21, 2015.  The fair value of the preferred stock at September 30, 2016 was determined using a pricing model and at December 31, 2015 represented the original exchange value.

13

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)	September 30, 2016		(Level 1)		(Level 2)		(Level 3)
Assets:
Fixed maturities, market value
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	429,168	$	-	$	429,168	$	-
Obligations of U.S. States and political subdivisions		765,004		-		765,004		-
Corporate securities		2,238,637		-		2,182,342		56,295
Asset-backed securities		169,025		-		169,025		-
Mortgage-backed securities
Commercial		77,497		-		74,018		3,479
Agency residential		757,447		-		757,447		-
Non-agency residential		103		-		103		-
Foreign government securities		553,921		-		553,921		-
Foreign corporate securities		1,024,139		-		1,021,145		2,994
Total fixed maturities, market value		6,014,941		-		5,952,173		62,768
Fixed maturities, fair value		3,982		-		3,982		-
Equity securities, fair value		961,115		895,406		65,709		-
Other invested assets, fair value		1,725,367		-		-		1,725,367

There were no transfers between Level 1 and Level 2 for the nine months ended September 30, 2016.

14

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, 2015		(Level 1)		(Level 2)		(Level 3)
Assets:
Fixed maturities, market value
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	330,985	$	-	$	330,985	$	-
Obligations of U.S. States and political subdivisions		703,075		-		703,075		-
Corporate securities		1,968,558		-		1,964,625		3,933
Asset-backed securities		144,982		-		144,982		-
Mortgage-backed securities
Commercial		62,446		-		62,446		-
Agency residential		712,298		-		712,298		-
Non-agency residential		150		-		150		-
Foreign government securities		463,074		-		463,074		-
Foreign corporate securities		970,909		-		969,316		1,593
Total fixed maturities, market value		5,356,477		-		5,350,951		5,526
Fixed maturities, fair value		2,102		-		2,102		-
Equity securities, fair value		1,215,377		1,153,310		62,067		-
Other invested assets, fair value		1,773,214		-		-		1,773,214

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

	Three Months Ended September 30, 2016												Nine Months Ended September 30, 2016
	Corporate						Foreign						Corporate						Foreign
(Dollars in thousands)	Securities			CMBS			Corporate			Total			Securities			CMBS			Corporate			Total
Beginning balance	$	32,410		$	-		$	2,021		$	34,431		$	3,933		$	-		$	1,593		$	5,526
Total gains or (losses) (realized/unrealized)
Included in earnings		(12	)		-			27			15			(22	)		-			(970	)		(992	)
Included in other comprehensive income (loss)		(48	)		(34	)		(1,285	)		(1,367	)		(81	)		(34	)		140			25
Purchases, issuances and settlements		25,877			(40	)		2,231			28,068			54,397			(40	)		2,231			56,588
Transfers in and/or (out) of Level 3		(1,932	)		3,553			-			1,621			(1,932	)		3,553			-			1,621
Ending balance	$	56,295		$	3,479		$	2,994		$	62,768		$	56,295		$	3,479		$	2,994		$	62,768
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	$	-		$	-		$	-		$	-		$	-		$	-		$	(997	)	$	(997	)
(Some amounts may not reconcile due to rounding.)

15

	Three Months Ended September 30, 2015									Nine Months Ended September 30, 2015
	Corporate			Foreign						Corporate						Foreign
(Dollars in thousands)	Securities			Corporate			Total			Securities			CMBS			Corporate			Total
Beginning balance	$	1,958		$	7,837		$	9,795		$	-		$	8,597		$	7,166		$	15,763
Total gains or (losses) (realized/unrealized)
Included in earnings		(6	)		62			56			(2	)		-			177			175
Included in other comprehensive income (loss)		(93	)		(1,287	)		(1,380	)		(95	)		-			(1,216	)		(1,311	)
Purchases, issuances and settlements		1,723			-			1,723			3,651			-			-			3,651
Transfers in and/or (out) of Level 3		1,693			(487	)		1,206			1,721			(8,597	)		(2	)		(6,878	)
Ending balance	$	5,275		$	6,125		$	11,400		$	5,275		$	-		$	6,125		$	11,400
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.)

The net transfers to/(from) level 3, fair value measurements using significant unobservable inputs were $1,621 thousand and ($6,878) thousand of investments for the nine months ended September 30, 2016 and 2015, respectively.  The $1,621 thousand relates to the net impact of securities no longer priced by a recognized pricing service.  The ($6,878) thousand primarily related to securities that were priced using single non-binding broker quotes as of December 31, 2014.  The securities were subsequently priced using a recognized pricing service as of September 30, 2015, and were classified as level 2 as of that date.

The following table presents the activity under Level 3, fair value measurements using significant unobservable inputs by other invested assets, for the periods indicated:

	Three months ended					Nine months ended
	September 30,					September 30,
(Dollars in thousands)	2016			2015		2016			2015
Other invested assets, fair value:
Beginning balance	$	1,772,458		$	-	$	1,773,214		$	-
Total gains or (losses) (realized/unrealized)
Included in earnings		(47,090	)		-		(47,846	)		-
Included in other comprehensive income (loss)		-			-		-			-
Purchases, issuances and settlements		-			-		-			-
Transfers in and/or (out) of Level 3		-			-		-			-
Ending balance	$	1,725,367		$	-	$	1,725,367		$	-
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.)

5.  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.

16

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.

The Company has entered into separate annuity agreements with The Prudential Insurance of America ("The Prudential") and an additional unaffiliated life insurance company in which the Company has either purchased annuity contracts or become the assignee of annuity proceeds that are meant to settle claim payment obligations in the future. In both instances, the Company would become contingently liable if either

The Prudential or the unaffiliated life insurance company were unable to make payments related to the respective annuity contact.

The table below presents the estimated cost to replace all such annuities for which the Company was contingently liable for the periods indicated:

	At September 30,		At December 31,
(Dollars in thousands)	2016		2015
The Prudential	$	140,826	$	142,427
Unaffiliated life insurance company		33,195		33,062

6.  OTHER COMPREHENSIVE INCOME (LOSS)

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

	Three Months Ended September 30, 2016									Nine Months Ended September 30, 2016
(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	$	8,305		$	(2,909	)	$	5,396		$	92,221	$	(32,279	)	$	59,942
URA(D) on securities - OTTI		(2,444	)		856			(1,588	)		4,199		(1,469	)		2,730
Reclassification of net realized losses (gains) included in net income (loss)		(4,258	)		1,491			(2,767	)		35,515		(12,430	)		23,085
Foreign currency translation adjustments		(4,066	)		1,424			(2,642	)		42,741		(14,962	)		27,779
Benefit plan actuarial net gain (loss)		-			-			-			-		-			-
Reclassification of amortization of net gain (loss) included in net income (loss)		1,951			(683	)		1,268			6,076		(2,127	)		3,949
Total other comprehensive income (loss)	$	(512	)	$	179		$	(333	)	$	180,752	$	(63,267	)	$	117,485
(Some amounts may not reconcile due to rounding)

	Three Months Ended September 30, 2015									Nine Months Ended September 30, 2015
(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	$	(45,240	)	$	15,347		$	(29,893	)	$	(84,958	)	$	28,749		$	(56,209	)
URA(D) on securities - OTTI		22			(7	)		15			9,757			(3,414	)		6,343
Reclassification of net realized losses (gains) included in net income (loss)		17,137			(5,512	)		11,625			73,793			(24,842	)		48,951
Foreign currency translation adjustments		(42,266	)		14,793			(27,473	)		(68,670	)		24,034			(44,636	)
Benefit plan actuarial net gain (loss)		-			-			-			-			-			-
Reclassification of amortization of net gain (loss) included in net income (loss)		2,393			(837	)		1,556			7,336			(2,567	)		4,769
Total other comprehensive income (loss)	$	(67,954	)	$	23,784		$	(44,170	)	$	(62,742	)	$	21,960		$	(40,782	)
(Some amounts may not reconcile due to rounding)

17

The following table presents details of the amounts reclassified from AOCI for the periods indicated:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,						Affected line item within the statements of
AOCI component	2016			2015			2016			2015			operations and comprehensive income (loss)
(Dollars in thousands)
URA(D) on securities	$	(4,258	)	$	17,137		$	35,515		$	73,793		Other net realized capital gains (losses)
		1,491			(5,512	)		(12,430	)		(24,842	)	Income tax expense (benefit)
	$	(2,767	)	$	11,625		$	23,085		$	48,951		Net income (loss)
Benefit plan net gain (loss)	$	1,951		$	2,393		$	6,076		$	7,336		Other underwriting expenses
		(683	)		(837	)		(2,127	)		(2,567	)	Income tax expense (benefit)
	$	1,268		$	1,556		$	3,949		$	4,769		Net income (loss)
(Some amounts may not reconcile due to rounding)

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

	Nine Months Ended			Twelve Months Ended
	September 30,			December 31,
(Dollars in thousands)	2016			2015
Beginning balance of URA (D) on securities	$	13,654		$	37,628
Current period change in URA (D) of investments - temporary		83,027			(30,257	)
Current period change in URA (D) of investments - non-credit OTTI		2,730			6,283
Ending balance of URA (D) on securities		99,411			13,654
Beginning balance of foreign currency translation adjustments		(12,701	)		41,877
Current period change in foreign currency translation adjustments		27,779			(54,578	)
Ending balance of foreign currency translation adjustments		15,078			(12,701	)
Beginning balance of benefit plan net gain (loss)		(63,089	)		(74,986	)
Current period change in benefit plan net gain (loss)		3,949			11,897
Ending balance of benefit plan net gain (loss)		(59,140	)		(63,089	)
Ending balance of accumulated other comprehensive income (loss)	$	55,349		$	(62,136	)

7.  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 September 30, 2016, the total amount on deposit in the trust account was $349,867 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.

18

On November 18, 2014, the Company entered into a collateralized reinsurance agreement with Kilimanjaro Re to provide the Company with catastrophe reinsurance coverage.  This agreement is a multi-year reinsurance contract which covers specified earthquake events.  The agreement provides up to $500,000 thousand of reinsurance coverage from earthquakes in the United States, Puerto Rico and Canada.

On December 1, 2015 the Company entered into two collateralized reinsurance agreements with Kilimanjaro Re to provide the Company with catastrophe reinsurance coverage.  These agreements are multi-year reinsurance contracts which cover named storm and earthquake events.  The first agreement provides up to $300,000 thousand of reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico and Canada.  The second agreement provides up to $325,000 thousand of reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico and Canada.

Kilimanjaro has financed the various property catastrophe reinsurance coverage by issuing catastrophe bonds to unrelated, external investors. On April 24, 2014, Kilimanjaro issued $450,000 thousand of notes ("Series 2014-1 Notes").  On November 18, 2014, Kilimanjaro issued $500,000 thousand of notes ("Series 2014-2 Notes"). On December 1, 2015, Kilimanjaro issued $625,000 thousand of notes ("Series 2015-1 Notes).  The proceeds from the issuance of the Series 2014-1 Notes, the Series 2014-2 Notes and the Series 2015-1 Notes are held in reinsurance trust throughout the duration of the applicable reinsurance agreements and invested solely in US government money market funds with a rating of at least "AAAm" by Standard & Poor's.

8.  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.

September 30, 2016

December 31, 2015

Consolidated Balance

Consolidated Balance

(Dollars in thousands)

Date Issued

Date Due

Principal Amounts

Sheet Amount

Market Value

Sheet Amount

Market Value

4.868% Senior notes

06/05/2014

06/01/2044

400,000

$

396,684

$

423,660

$

396,594

$

381,204

On June 5, 2014, Holdings issued $400,000 thousand of 30 year senior notes at 4.868%, which will mature on June 1, 2044. 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				Nine Months Ended
	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Interest expense incurred	$	4,868	$	4,868	$	14,604	$	14,604

9.  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

September 30, 2016

December 31, 2015

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

$

236,438

$

197,706

$

236,364

$

208,978

19

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.  Effective upon the maturity of the Company's 5.40% senior notes on October 15, 2014, the Company's 4.868% senior notes, due on June 1, 2044, have become the Company's long term indebtedness that ranks senior to the long term 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				Nine Months Ended
	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Interest expense incurred	$	3,937	$	3,937	$	11,811	$	11,811

10.  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.

20

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:

	Three Months Ended				Nine Months Ended
U.S. Reinsurance	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Gross written premiums	$	654,770	$	601,570	$	1,597,006	$	1,615,276
Net written premiums		327,242		247,352		711,700		672,753
Premiums earned	$	249,203	$	235,275	$	709,064	$	726,113
Incurred losses and LAE		137,245		109,137		363,567		337,065
Commission and brokerage		48,107		48,881		147,968		141,948
Other underwriting expenses		14,265		13,718		39,856		37,054
Underwriting gain (loss)	$	49,586	$	63,539	$	157,673	$	210,046

	Three Months Ended					Nine Months Ended
International	September 30,					September 30,
(Dollars in thousands)	2016		2015			2016		2015
Gross written premiums	$	353,195	$	374,138		$	939,851	$	1,019,406
Net written premiums		141,295		147,991			353,449		417,071
Premiums earned	$	128,358	$	135,130		$	372,816	$	433,751
Incurred losses and LAE		41,830		128,454			206,672		339,926
Commission and brokerage		30,193		27,936			82,443		93,178
Other underwriting expenses		9,219		9,128			25,011		25,292
Underwriting gain (loss)	$	47,116	$	(30,388	)	$	58,690	$	(24,645	)

	Three Months Ended					Nine Months Ended
Insurance	September 30,					September 30,
(Dollars in thousands)	2016		2015			2016			2015
Gross written premiums	$	497,958	$	473,003		$	1,276,761		$	1,130,233
Net written premiums		154,079		203,730			462,791			490,140
Premiums earned	$	179,092	$	175,645		$	445,553		$	428,672
Incurred losses and LAE		122,528		133,163			365,962			325,522
Commission and brokerage		7,263		(4,666	)		(3,900	)		6,509
Other underwriting expenses		40,665		34,107			116,839			94,723
Underwriting gain (loss)	$	8,636	$	13,041		$	(33,348	)	$	1,918

21

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						Nine Months Ended
	September 30,						September 30,
(Dollars in thousands)	2016			2015			2016			2015
Underwriting gain (loss)	$	105,338		$	46,192		$	183,015		$	187,319
Net investment income		64,570			63,363			196,887			206,869
Net realized capital gains (losses)		(50,063	)		(121,695	)		(87,275	)		(49,174	)
Corporate expense		(1,835	)		(1,637	)		(6,181	)		(5,031	)
Interest, fee and bond issue cost amortization expense		(8,859	)		(8,859	)		(26,576	)		(26,576	)
Other income (expense)		(13,208	)		10,828			(10,806	)		38,950
Income (loss) before taxes	$	95,943		$	(11,808	)	$	249,064		$	352,357

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				Nine Months Ended
	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Canada gross written premiums	$	35,856	$	31,903	$	94,072	$	85,575

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

11.  RELATED-PARTY TRANSACTIONS

Parent

Group entered into a $250,000 thousand long term promissory note agreement with Holdings as of December 31, 2014.  The note will mature on December 31, 2023 and has an interest rate of 1.72% that will be paid annually, on December 15^th of each year. This transaction is presented as a Note Receivable – Affiliated in the Consolidated Balance Sheets of Holdings.  Interest income in the amount of $3,225 thousand and $3,225 thousand was recorded by Holdings for the nine months ended September 30, 2016, and September 30, 2015, respectively.

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
11/19/2014	5,000,000
	30,000,000

Through December, 2015, Holdings had purchased and held 9,719,971 Common Shares of Group, which were purchased in the open market between February 2007 and March 2011.

22

In December, 2015, Holdings transferred the 9,719,971 Common Shares of Group, which it held as other invested assets, at fair value, valued at $1,773,214 thousand, to Preferred Holdings, an affiliated entity and subsidiary of Group, in exchange for 1,773.214 preferred shares of Preferred Holdings with a $1,000 thousand par value and 1.75% annual dividend rate.  After the exchange, Holdings no longer holds any shares or has any ownership interest in Group.

Holdings reported both its Parent Shares and preferred shares in Preferred Holdings, 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 the preferred shares of preferred Holdings and on the Parent 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				Nine Months Ended
	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Dividends received on Parent shares	$	-	$	9,234	$	-	$	27,702
Dividends received on preferred stock of affiliate		7,758		-		23,274		-

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				Nine Months Ended
	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Expenses incurred	$	21,242	$	20,359	$	62,701	$	58,555

23

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
01/01/2012-12/31/2014	Everest Re		50.0	%	Bermuda Re	property / casualty business		100,000			200,000
01/01/2015	Everest Re		50.0	%	Bermuda Re	property / casualty business		162,500			325,000
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.

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

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

On July 13, 2015, the Company sold Mt. McKinley to Clearwater Insurance Company, a Delaware domiciled insurance company. As of that date, Mt. McKinley is no longer deemed an affiliated company or related party.

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 and Lloyd's syndicate 2786 for the periods indicated:

	Three Months Ended				Nine Months Ended
Bermuda Re	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Ceded written premiums	$	685,798	$	646,001	$	1,746,976	$	1,713,502
Ceded earned premiums		585,993		591,656		1,718,295		1,708,807
Ceded losses and LAE (a)		344,789		343,660		1,039,932		984,371

	Three Months Ended						Nine Months Ended
Everest International	September 30,						September 30,
(Dollars in thousands)	2016			2015			2016		2015
Ceded written premiums	$	(5	)	$	168		$	26	$	313
Ceded earned premiums		(3	)		208			36		441
Ceded losses and LAE		479			(724	)		1,377		156

	Three Months Ended				Nine Months Ended
Everest Canada	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Assumed written premiums	$	12,667	$	11,046	$	39,094	$	29,533
Assumed earned premiums		11,611		9,174		34,740		26,498
Assumed losses and LAE		13,287		4,041		34,714		15,062

	Three Months Ended				Nine Months Ended
Lloyd's Syndicate 2786	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Assumed written premiums	$	351	$	-	$	890	$	-
Assumed earned premiums		173		-		289		-
Assumed losses and LAE		-		-		-		-

(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, amortization of deferred gain on retroactive reinsurance is reflected in other income on the consolidated statements of operations and comprehensive income (loss). Upon the sale of Mt. McKinley, the value of the remaining deferred gain on retroactive reinsurance was included in the calculation of the realized gain on sale of subsidiary.

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.

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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 segregated accounts and assumed by the Company from Mt. Logan Re segregated accounts.

	Three Months Ended				Nine Months Ended
Mt. Logan Re Segregated Accounts	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Ceded written premiums	$	57,911	$	68,078	$	128,292	$	162,640
Ceded earned premiums		44,548		55,234		118,776		141,668
Ceded losses and LAE		7,420		17,071		32,750		38,542
Assumed written premiums		5,032		4,230		11,666		11,626
Assumed earned premiums		5,032		4,230		11,666		11,626
Assumed losses and LAE		-		-		-		-

12.RETIREMENT BENEFITS

The Company maintains both qualified and non-qualified defined benefit pension plans and a retiree health plan for its U.S. employees employed prior to April 1, 2010.

Net periodic benefit cost for U.S. employees included the following components for the periods indicated:

Pension Benefits	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Dollars in thousands)	2016			2015			2016			2015
Service cost	$	2,731		$	3,203		$	8,524		$	9,398
Interest cost		2,371			2,758			7,093			7,926
Expected return on plan assets		(2,789	)		(2,904	)		(7,757	)		(8,710	)
Amortization of prior service cost		-			4			-			15
Amortization of net (income) loss		1,984			2,312			6,012			6,824
Net periodic benefit cost	$	4,297		$	5,373		$	13,872		$	15,453

Other Benefits	Three Months Ended					Nine Months Ended
	September 30,					September 30,
(Dollars in thousands)	2016			2015		2016			2015
Service cost	$	354		$	498	$	1,230		$	1,498
Interest cost		252			329		844			987
Amortization of prior service costs		(33	)		-		(33	)		-
Amortization of net (income) loss		-			76		96			497
Net periodic benefit cost	$	573		$	903	$	2,137		$	2,982

The Company contributed $30,000 thousand to the qualified pension benefit plan for the three and nine months ended September 30, 2016.  The Company did not make any contributions to the qualified pension benefit plan for the three and nine months ended September 30, 2015.

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13.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.

14.  DISPOSITION

The Company sold Heartland, its crop Managing General Agent to CGB for $49,000 thousand.  The sale agreement includes a provision for a long term strategic reinsurance relationship with CGB.  The Company has recognized an after-tax loss on the sale of Heartland of $12,942 thousand.  Under the terms of the reinsurance arrangement, there will not be a material fluctuation in the level of crop business, although it will be reflected as reinsurance rather than insurance.

15.  SUBSEQUENT EVENTS

The Company has evaluated known recognized and non-recognized subsequent events.  During the early part of October, Hurricane Matthew impacted the Caribbean and the southeastern United States.  Based upon current early overall industry loss projections of $3 billion to $9 billion and applying the Company's estimated market share, the Company's best estimated range of loss from this event is $25,000 thousand to $75,000 thousand.  The Company does not have any other subsequent events to report.

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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, higher rates and stronger profits followed by periods of abundant capacity, lower 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, domestic and international underwriting operations, including underwriting syndicates at Lloyd's of London and certain government sponsored risk transfer vehicles.  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 recently, the 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 property catastrophe and casualty reinsurance lines of business.  Generally, there was ample insurance and reinsurance capacity relative to demand, as well as, additional capital from the capital markets through insurance linked financial instruments.  These financial instruments such as side cars, catastrophe bonds and collateralized reinsurance funds, provide capital markets with access to insurance and reinsurance risk exposure. The capital markets demand for these products is being primarily driven by the current low interest environment and the desire to achieve greater risk diversification and potentially higher returns on their investments.  This increased competition is generally having a negative impact on rates, terms and conditions; however, the impact varies widely by market and coverage.

Rates tend to fluctuate by specific region and products, particularly areas recently impacted by large catastrophic events.  Although there have been flooding and wind storm events and earthquakes in parts of the world, the overall 2013, 2014 and 2015 catastrophe losses for the industry were considerably lower than average.  During the first half of 2016, there has been an increase in catastrophes, such as the Fort McMurray Canadian wildfire, storms and an earthquake in Ecuador; however, the aggregate of these losses are below historical levels of catastrophe losses.  This lower level of losses, combined with increased competition has resulted in downward pressure on insurance and reinsurance rates in certain geographical areas.  During the first part of October, Hurricane Matthew affected a large area of the Caribbean and southeastern United States.  While the future impact on market conditions from this storm cannot be determined at this time, it is unlikely to have a significant impact on the overall markets, but may impact affected areas.

During 2015, we initiated a strategic build out of our insurance platform through the investment in key leadership hires which in turn has brought significant underwriting talent and stronger direction in achieving our insurance program strategic goals of increased volume and improved underwriting results.  Recent growth is coming from highly diversified areas including newly launched lines of business, as well as, product and geographic expansion in existing lines of business.  We are building a world-class insurance platform capable of offering products across lines and geographies, complementing our leading global reinsurance franchise.

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

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			Nine Months Ended						Percentage
	September 30,						Increase/			September 30,						Increase/
(Dollars in millions)	2016			2015			(Decrease)			2016			2015			(Decrease)
Gross written premiums	$	1,505.9		$	1,448.7			3.9	%	$	3,813.6		$	3,764.9			1.3	%
Net written premiums		622.6			599.1			3.9	%		1,527.9			1,580.0			-3.3	%
REVENUES:
Premiums earned	$	556.7		$	546.1			1.9	%	$	1,527.4		$	1,588.5			-3.8	%
Net investment income		64.6			63.4			1.9	%		196.9			206.9			-4.8	%
Net realized capital gains (losses)		(50.1	)		(121.7	)		-58.9	%		(87.3	)		(49.2	)		77.5	%
Other income (expense)		(13.2	)		10.8			-222.0	%		(10.8	)		39.0			-127.7	%
Total revenues		558.0			498.5			11.9	%		1,626.2			1,785.2			-8.9	%
CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses		301.6			370.8			-18.7	%		936.2			1,002.5			-6.6	%
Commission, brokerage, taxes and fees		85.6			72.2			18.6	%		226.5			241.6			-6.3	%
Other underwriting expenses		64.1			57.0			12.6	%		181.7			157.1			15.7	%
Corporate expense		1.8			1.6			12.1	%		6.2			5.0			22.9	%
Interest, fee and bond issue cost amortization expense		8.9			8.9			0.0	%		26.6			26.6			0.0	%
Total claims and expenses		462.0			510.4			-9.5	%		1,377.2			1,432.8			-3.9	%
INCOME (LOSS) BEFORE TAXES		96.0			(11.8	)	NM				249.1			352.4			-29.3	%
Income tax expense (benefit)		21.1			(7.1	)	NM				67.0			107.3			-37.6	%
NET INCOME (LOSS)	$	74.8		$	(4.7	)	NM			$	182.1		$	245.1			-25.7	%
RATIOS:							Point Change									Point Change
Loss ratio		54.2	%		67.9	%		(13.7	)		61.3	%		63.1	%		(1.8	)
Commission and brokerage ratio		15.4	%		13.2	%		2.2			14.8	%		15.2	%		(0.4	)
Other underwriting expense ratio		11.5	%		10.4	%		1.1			11.9	%		9.9	%		2.0
Combined ratio		81.1	%		91.5	%		(10.4	)		88.0	%		88.2	%		(0.2	)
										At			At			Percentage
										September 30,			December 31,			Increase/
(Dollars in millions)											2016			2015		(Decrease)
Balance sheet data:
Total investments and cash										$	9,794.7		$	9,516.3			2.9	%
Total assets											17,434.7			16,695.2			4.4	%
Loss and loss adjustment expense reserves											8,306.4			7,940.7			4.6	%
Total debt											633.1			633.0			0.0	%
Total liabilities											12,193.8			11,764.0			3.7	%
Stockholder's equity											5,241.0			4,931.2			6.3	%
(Some amounts may not reconcile due to rounding)
(NM, not meaningful)

Revenues.

Premiums.  Gross written premiums increased by 3.9% to $1,505.9 million for the three months ended September 30, 2016, compared to $1,448.7 million for the three months ended September 30, 2015, reflecting, a $25.0 million, or 5.3%, increase in our insurance business, and a $32.3 million, or 3.3%, increase in our reinsurance business.  The rise in insurance premiums was primarily due to increases in most lines of business, as we have focused on expanding the insurance operations.  The increase in reinsurance premiums was mainly due to increases in treaty and facultative casualty business.  These increases were partially offset by lower premiums in treaty property business and a higher negative impact of $6.7 million from the year over year movement in foreign exchange rates.  Gross written premiums

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increased to $3,813.6 million for the nine months ended September 30, 2016, compared to $3,764.9 million for the nine months ended September 30, 2015, reflecting a $146.5 million, or 13.0%, increase in our insurance business, partially offset by a $97.8 million, or 3.7%, decrease in our reinsurance business.  The rise in insurance premiums was primarily due to increases in most lines of business, as we have focused on expanding the insurance operations.  The decline in reinsurance premiums was mainly due to a decrease in treaty property business, a decline in international premiums related to quota share agreements and a negative impact of $39.1 million from the year over year movement in foreign exchange rates.

Net written premiums increased by 3.9% to $622.6 million for the three months ended September 30, 2016, compared to $599.1 million for the three months ended September 30, 2015, and decreased by 3.3% to $1,527.9 million for the nine months ended September 30, 2016 compared to $1,580.0 million for the nine months ended September 30, 2015.  The quarter over quarter change is consistent with the change in gross written premiums, with some fluctuation for the nine months ended September 30, 2016, primarily due to higher utilization reinsurance for new insurance business and quota share agreements.  Premiums earned increased by 1.9% to $556.7 million for the three months ended September 30, 2016, compared to $546.1 million for the three months ended September 30, 2015, and decreased by 3.8% to $1,527.4 million for the nine months ended September 30, 2016, compared to $1,588.5 million for the nine months ended September 30, 2015.  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 increased by 1.9% to $64.6 million for the three months ended September 30, 2016, compared with net investment income of $63.4 million for the three months ended September 30, 2015, and decreased by 4.8% to $196.9 million for nine months ended September 30, 2016, compared with net investment income of $206.9 million for the nine months ended September 30, 2015. The increase in income for the three months ended September 30, 2016 compared to the prior period was primarily due to higher income from our limited partnerships, partially offset by lower reinvestment rates for the fixed income portfolios. The decline in income and yield for the nine months ended September 30, 2016 compared to the prior period was primarily the result of lower reinvestment rates for the fixed income portfolios.

Net Realized Capital Gains (Losses). Net realized capital losses were $50.1 million and $121.7 million for the three months ended September 30, 2016 and 2015, respectively. The net realized capital losses of $50.1 million were comprised of $30.9 million of losses from fair value re-measurements on fixed maturity securities, equity securities and other invested assets, net realized capital losses of $28.0 million from the sale of our Heartland subsidiary and $0.8 million of other-than-temporary impairments, partially offset by $9.6 million of gains from sales on our fixed maturity and equity securities.  The $121.7 million was comprised of $185.6 million of losses from fair value re-measurements on equity securities and other invested assets, $20.3 million of losses from sales on our fixed maturity and equity securities and $10.5 million of other-than-temporary impairments, partially offset by a $94.7 million gain on the sale of a subsidiary.

Net realized capital losses were $87.3 million and $49.2 million for the nine months ended September 30, 2016 and 2015, respectively. The net realized capital losses of $87.3 million were comprised of net realized capital losses of $28.0 million from the sale of our Heartland subsidiary, $25.2 million of other-than-temporary impairment,$22.4 million of losses from sales on our fixed maturity and equity securities and $11.7 million of losses from fair value re-measurements on fixed maturity securities, equity securities and other invested assets. The $49.2 million was comprised of $56.1 million of losses from fair value re-measurements on fixed maturity securities, equity securities and other invested assets, $44.3 million of losses from sales on our fixed maturity and equity securities and $43.4 million of other-than-temporary impairments, partially offset by a $94.7 million gain on the sale of a subsidiary.

Other Income (Expense).  We recorded other expense of $13.2 million and $10.8 million for the three and nine months ended September 30, 2016, respectively.  We recorded other income of $10.8 million and $39.0 million for the three and nine months ended September 30, 2015, respectively.  The changes were primarily the result of fluctuations in foreign currency exchange rates for the corresponding periods.

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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 September 30,
	Current			Ratio %/				Prior			Ratio %/				Total			Ratio %/
(Dollars in millions)	Year			Pt Change				Years			Pt Change				Incurred			Pt Change
2016
Attritional	$	300.4			54.0	%		$	0.1			0.0	%		$	300.6			54.0	%
Catastrophes		20.9			3.8	%			(19.8	)		-3.6	%			1.0			0.2	%
Total segment	$	321.3			57.8	%		$	(19.7	)		-3.6	%		$	301.6			54.2	%
2015
Attritional	$	351.1			64.4	%		$	3.3			0.6	%		$	354.4			65.0	%
Catastrophes		17.2			3.1	%			(0.9	)		-0.2	%			16.3			2.9	%
Total segment	$	368.3			67.5	%		$	2.4			0.4	%		$	370.8			67.9	%
Variance 2016/2015
Attritional	$	(50.7	)		(10.4	)	pts	$	(3.2	)		(0.6	)	pts	$	(53.8	)		(11.0	)	pts
Catastrophes		3.7			0.7		pts		(18.9	)		(3.4	)	pts		(15.3	)		(2.7	)	pts
Total segment	$	(47.0	)		(9.7	)	pts	$	(22.1	)		(4.0	)	pts	$	(69.2	)		(13.7	)	pts

	Nine Months Ended September 30,
	Current			Ratio %/				Prior			Ratio %/				Total			Ratio %/
(Dollars in millions)	Year			Pt Change				Years			Pt Change				Incurred			Pt Change
2016
Attritional	$	894.7			58.5	%		$	0.9			0.1	%		$	895.6			58.6	%
Catastrophes		77.6			5.1	%			(37.0	)		-2.4	%			40.6			2.7	%
Total segment	$	972.3			63.6	%		$	(36.1	)		-2.3	%		$	936.2			61.3	%
2015
Attritional	$	973.2			61.3	%		$	2.0			0.1	%		$	975.2			61.4	%
Catastrophes		35.3			2.2	%			(8.0	)		-0.5	%			27.3			1.7	%
Total segment	$	1,008.5			63.5	%		$	(6.0	)		-0.4	%		$	1,002.5			63.1	%
Variance 2016/2015
Attritional	$	(78.5	)		(2.8	)	pts	$	(1.1	)		-		pts	$	(79.6	)		(2.8	)	pts
Catastrophes		42.3			2.9		pts		(29.0	)		(1.9	)	pts		13.3			1.0		pts
Total segment	$	(36.2	)		0.1		pts	$	(30.1	)		(1.9	)	pts	$	(66.3	)		(1.8	)	pts
(Some amounts may not reconcile due to rounding.)

Incurred losses and LAE decreased by 18.7% to $301.6 million for the three months ended September 30, 2016 compared to $370.8 million for the three months ended September 30, 2015, primarily due to a decrease in current year attritional losses of $50.7 million, as the 2015 attritional loss ratio reflected a $21.6 million loss estimate for the explosions at the Chinese Port of Tianjin, $18.9 million of more favorable development on prior years' catastrophe losses and a $3.2 million decrease in prior years attritional losses, partially offset by a $3.7 million increase in current year catastrophe losses.  The $19.8 million favorable loss development for prior years' catastrophes for the three months ended September 30, 2016 related primarily to the 2015 Chilean earthquake ($12.5 million) and the 2013 U.S. storms ($6.0 million).  The current year catastrophe losses of $20.9 million for the three months ended September 30, 2016 were related to Hurricane Hermine ($6.8 million), U.S. Storms ($6.6 million), the Fort McMurray Canada Wildfire ($5.0 million), the Taiwan earthquake ($2.3 million) and the Ecuador earthquake ($0.2 million). The current year catastrophe losses of $17.2 million for the three months ended September 30, 2015 primarily related to the 2015 Chilean earthquake ($17.4 million).

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Incurred losses and LAE decreased slightly to $936.2 million for the nine months ended September 30, 2016 compared to $1,002.5 million for the nine months ended September 30, 2015, primarily due to a decrease in current year attritional losses of $78.5 million and more favorable development on prior years' catastrophe losses of $29.0 million compared to the prior year, partially offset by an increase of $42.3 million in current year catastrophe losses.  The $78.5 million decline in the current year attritional losses was primarily due to the $21.6 million attritional losses in 2015 related to the explosions at the Chinese Port of Tianjin and the 3.8% decline in premiums earned.  The $37.0 million of favorable prior years catastrophe losses for the nine months ended September 30, 2016 related primarily to the 2011 Japanese earthquake ($15.5 million), the 2015 Chilean earthquake ($12.4 million), and the 2013 U.S. storms ($4.8 million).  The current year catastrophe losses of $77.6 million for the nine months ended September 30, 2016 were related to the Fort McMurray Canada Wildfire ($26.9 million), the 2016 U.S. Storms ($24.9 million), the Ecuador earthquake ($11.6 million), the 2016 Taiwan earthquake ($7.5 million) and Hurricane Hermine ($6.8 million). The current year catastrophe losses of $35.3 million for the nine months ended September 30, 2015 primarily related to the 2015 Chilean earthquake ($17.4 million), Northern Chile storms ($9.8 million) and the New South Wales storms ($8.0 million).

Commission, Brokerage, Taxes and Fees.  Commission, brokerage, taxes and fees increased by 18.6% to $85.6 million for the three months ended September 30, 2016 compared to $72.2 million for the three months ended September 30, 2015.  Commission, brokerage, taxes and fees decreased by 6.3% to $226.5 million for the nine months ended September 30, 2016 compared to $241.6 million for the nine months ended September 30, 2015.  These variances were primarily due to the impact of the changes in premiums earned and changes in the mix of business.

Other Underwriting Expenses.  Other underwriting expenses were $64.1 million and $57.0 million for the three months ended September 30, 2016 and 2015, respectively. Other underwriting expenses were $181.7 million and $157.1 million for the nine months ended September 30, 2016 and 2015, respectively. The increases in other underwriting expenses were mainly due to costs incurred related to the expansion of the insurance operations.

Corporate Expenses.  Corporate expenses, which are general operating expenses that are not allocated to segments, were $1.8 million and $1.6 million for the three months ended September 30, 2016 and 2015, respectively, and $6.2 million and $5.0 million for the nine months ended September 30, 2016 and 2015, respectively.  The increases in corporate expenses were mainly due to increased compensation and benefit expenses.

Interest, Fees and Bond Issue Cost Amortization Expense.  Interest, fees and other bond amortization expense was $8.9 million for three months ended September 30, 2016 and 2015.  Interest, fees and other bond amortization expense was $26.6 million for nine months ended September 30, 2016 and 2015, respectively.

Income Tax Expense (Benefit).  Income tax expense was $21.1 million and income tax benefits were $7.1 million for the three months ended September 30, 2016 and 2015, respectively.  Income tax expense was $67.0 million and $107.3 million for the nine months ended September 30, 2016 and 2015, 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.  Variations in the income tax expense 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 expenses for the three months ended September 30, 2016 compared to the three months ended September 30, 2015 were mainly due to the decrease in losses incurred and lower capital losses.

Net Income (Loss).

Our net income was $74.8 million and our net loss was $4.7 million for the three months ended September 30, 2016 and 2015, respectively.  Our net income was $182.1 million and $245.1 million for the nine months ended September 30, 2016 and 2015, respectively. The changes were primarily driven by the financial component fluctuations explained above.

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Ratios.

Our combined ratio decreased by 10.4 points to 81.1% for the three months ended September 30, 2016, compared to 91.5% for the three months ended September 30, 2015, and decreased by 0.2 points to 88.0% for the nine months ended September 30, 2016, compared to 88.2% for the nine months ended September 30, 2015.  The loss ratio component decreased by 13.7 points and 1.8 points for the three and nine months ended September 30, 2016, respectively, over the same period last year.  The change for the three month period was mainly due to lower current year attritional losses and favorable prior year development on catastrophe losses in 2016 compared to 2015.  The commission and brokerage ratio components increased 2.2 points and decreased 0.4 points for the three and nine months ended September 30, 2016, respectively, compared to the prior period due mainly to changes in the mix of business and the impact of affiliated quota share agreements.  The other underwriting expense ratio components increased 1.1 points and 2.0 points for the three and nine months ended September 30, 2016, respectively, over the same period last year mainly due to the increased focus on the expansion of the insurance business.

Stockholder's Equity.

Stockholders' equity increased by $309.7 million to $5,241.0 million at September 30, 2016 from $4,931.2 million at December 31, 2015, principally as a result of $182.1 million of net income, $85.8 million of net unrealized appreciation on investments, net of tax, $27.8 million of net foreign currency translation adjustments, $10.2 million of share-based compensation transactions and $3.9 million of net benefit plan obligation adjustments.

Consolidated Investment Results

Net Investment Income.

Net investment income increased 1.9% to $64.6 million for the three months ended September 30, 2016 compared to $63.4 million for the three months ended September 30, 2015, primarily due to an increase in limited partnership income, partially offset by lower reinvestment rates for the fixed income portfolios.  Net investment income decreased by 4.8% to $196.9 million for the nine months ended September 30, 2016 compared to $206.9 million for the nine months ended September 30, 2015, primarily due to a decline in income from fixed maturities, reflective of lower reinvestment rates.

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Dollars in millions)	2016			2015			2016			2015
Fixed maturities	$	44.8		$	46.4		$	134.9		$	140.8
Equity securities		7.9			8.0			25.8			26.6
Short-term investments and cash		0.3			0.2			0.9			0.7
Other invested assets
Limited partnerships		6.0			3.0			17.7			17.7
Dividends from Parent's shares		-			9.2			-			27.7
Dividends from preferred shares of affiliate		7.8			-			23.3			-
Other		0.5			(0.2	)		0.3			1.4
Gross investment income before adjustments		67.3			66.6			202.8			214.9
Funds held interest income (expense)		1.1			0.9			4.7			4.3
Interest income from Parent		1.1			1.0			3.2			3.2
Gross investment income		69.5			68.7			210.8			222.5
Investment expenses		(4.9	)		(5.3	)		(13.9	)		(15.6	)
Net investment income	$	64.6		$	63.4		$	196.9		$	206.9
(Some amounts may not reconcile due to rounding.)

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

	At	At
	September 30,	December 31,
	2016	2015
Imbedded pre-tax yield of cash and invested assets at December 31	3.0%	2.9%
Imbedded after-tax yield of cash and invested assets at December 31	2.1%	2.1%

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2016	2015	2016	2015
Annualized pre-tax yield on average cash and invested assets	2.7%	3.1%	2.8%	3.3%
Annualized after-tax yield on average cash and invested assets	1.9%	2.1%	1.9%	2.3%

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 September 30,									Nine Months Ended September 30,
(Dollars in millions)	2016			2015			Variance			2016			2015			Variance
Gains (losses) from sales:
Fixed maturity securities, market value
Gains	$	6.3		$	1.4		$	4.9		$	13.9		$	9.0		$	4.9
Losses		(1.9	)		(8.1	)		6.2			(24.1	)		(39.4	)		15.3
Total		4.4			(6.7	)		11.1			(10.3	)		(30.4	)		20.2
Fixed maturity securities, fair value
Gains		-			-			-			-			-			-
Losses		-			-			-			(1.9	)		-			(1.9	)
Total		-			-			-			(1.9	)		-			(1.9	)
Equity securities, fair value
Gains		6.9			5.3			1.6			13.5			17.7			(4.2	)
Losses		(1.4	)		(18.9	)		17.5			(23.6	)		(31.7	)		8.1
Total		5.5			(13.6	)		19.1			(10.1	)		(14.0	)		3.9
Total net realized gains (losses) from sales
Gains		13.2			6.6			6.6			27.4			26.7			0.7
Losses		(3.4	)		(26.9	)		23.5			(49.7	)		(71.0	)		21.3
Total		9.6			(20.3	)		30.1			(22.4	)		(44.3	)		22.0
Gain (losses) on sale of subsidiary:		(28.0	)		94.7			(122.7	)		(28.0	)		94.7			(122.7	)
Other than temporary impairments:		(0.8	)		(10.5	)		9.7			(25.2	)		(43.4	)		18.2
Gains (losses) from fair value adjustments:
Fixed maturities, fair value		0.1			-			0.1			1.4			0.1			1.3
Equity securities, fair value		16.0			(101.3	)		117.3			34.7			(85.7	)		120.4
Other invested assets, fair value		(47.0	)		(84.3	)		37.3			(47.8	)		29.5			(77.3	)
Total		(30.9	)		(185.6	)		154.7			(11.7	)		(56.1	)		44.4
Total net realized gains (losses)	$	(50.1	)	$	(121.7	)	$	71.6		$	(87.3	)	$	(49.2	)	$	(38.1	)
(Some amounts may not reconcile due to rounding)

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Net realized capital losses were $50.1 million and $121.7 million for the three months ended September 30, 2016 and 2015, respectively.  For the three months ended September 30, 2016, we recorded $30.9 million of net realized capital losses due to fair value re-measurements on fixed maturity securities, equity securities and other invested assets, net realized capital losses of $28.0 million from the sale of our Heartland subsidiary and $0.8 million of other-than-temporary impairments, partially offset by $9.6 million of net realized capital gains from sales of fixed maturity.  For the three months ended September 30, 2015, we recorded $185.6 million of net realized capital losses due to fair value re-measurements on equity securities and other invested assets, $20.3 million of net realized capital losses from sales of fixed maturity and equity securities and $10.5 million of other-than-temporary impairments, partially offset by a $94.7 million gain on the sale of a subsidiary.  The fixed maturity and equity sales for both periods related primarily to adjusting the portfolios for overall market changes and individual credit shifts.

Net realized capital losses were $87.3 million and $49.2 million for the nine months ended September 30, 2016 and 2015, respectively.  For the nine months ended September 30, 2016, we recorded a net realized capital losses of $28.0 million from the sale of our Heartland subsidiary, $25.2 million of other-than-temporary impairments, $22.4 million of net realized capital losses from sales of fixed maturity and equity securities and $11.7 million of net realized capital losses due to fair value re-measurements on fixed maturity securities, equity securities and other invested assets.  For the nine months ended September 30, 2015, we recorded $56.1 million of net realized capital losses due to fair value re-measurements on fixed maturity securities, equity securities and other invested assets, $44.3 million of net realized capital losses from sales of fixed maturity and equity securities and $43.4 million of other-than-temporary impairments, partially offset by a $94.7 million gain on the sale of a subsidiary.  The fixed maturity and equity sales for both periods related primarily to adjusting the portfolios for overall market changes and individual credit shifts.

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 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.  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 management's 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.

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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 September 30,												Nine Months Ended September 30,
(Dollars in millions)	2016			2015			Variance			% Change			2016			2015			Variance			% Change
Gross written premiums	$	654.8		$	601.6		$	53.2			8.8	%	$	1,597.0		$	1,615.3		$	(18.3	)		-1.1	%
Net written premiums		327.2			247.4			79.9			32.3	%		711.7			672.8			38.9			5.8	%
Premiums earned	$	249.2		$	235.3		$	13.9			5.9	%	$	709.1		$	726.1		$	(17.0	)		-2.3	%
Incurred losses and LAE		137.2			109.1			28.1			25.8	%		363.6			337.1			26.5			7.9	%
Commission and brokerage		48.1			48.9			(0.8	)		-1.6	%		148.0			141.9			6.0			4.2	%
Other underwriting expenses		14.3			13.7			0.5			4.0	%		39.9			37.1			2.8			7.6	%
Underwriting gain (loss)	$	49.6		$	63.5		$	(14.0	)		-22.0	%	$	157.7		$	210.0		$	(52.4	)		-25.0	%
										Point Chg												Point Chg
Loss ratio		55.1	%		46.4	%					8.7			51.3	%		46.4	%					4.9
Commission and brokerage ratio		19.3	%		20.8	%					(1.5	)		20.9	%		19.5	%					1.4
Other underwriting ratio		5.7	%		5.8	%					(0.1	)		5.6	%		5.2	%					0.4
Combined ratio		80.1	%		73.0	%					7.1			77.8	%		71.2	%					6.7
(Some amounts may not reconcile due to rounding.)

Premiums.Gross written premiums increased by 8.8% to $654.8 million for the three months ended September 30, 2016 from $601.6 million for the three months ended September 30, 2015, primarily due to an increase in treaty casualty business.  Net written premiums increased by 32.3% to $327.2 million for the three months ended September 30, 2016 compared to $247.4 million for the three months ended September 30, 2015. The difference between the change in gross written premiums compared to the change in net written premiums is primarily due to the assumption of the crop business due to the sale of Heartland and a concurrent new crop reinsurance contract.  Premiums earned increased 5.9% to $249.2 million for the three months ended September 30, 2016 compared to $235.3 million for the three months ended September 30, 2015.  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.

Gross written premiums decreased by 1.1% to $1,597.0 million for the nine months ended September 30, 2016 from $1,615.3 million for the nine months ended September 30, 2015, primarily due to a decrease in treaty property business, partially offset by an increase in treaty casualty business.  Net written premiums increased by 5.8% to $711.7 million for the nine months ended September 30, 2016 compared to $672.8 million for the nine months ended September 30, 2015. The difference between the change in gross written premiums compared to the change in net written premiums is primarily due to the crop transaction described above.  Premiums earned decreased 2.3% to $709.1 million for the nine months ended September 30, 2016 compared to $726.1 million for the nine months ended September 30, 2015.  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.

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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 September 30,
	Current		Ratio %/				Prior			Ratio %/				Total			Ratio %/
(Dollars in millions)	Year		Pt Change				Years			Pt Change				Incurred			Pt Change
2016
Attritional	$	129.8		52.1	%		$	(1.0	)		-0.4	%		$	128.8			51.7	%
Catastrophes		14.4		5.8	%			(5.9	)		-2.4	%			8.5			3.4	%
Total segment	$	144.2		57.9	%		$	(6.9	)		-2.8	%		$	137.2			55.1	%
2015
Attritional	$	108.1		45.9	%		$	1.5			0.6	%		$	109.6			46.5	%
Catastrophes		0.1		0.1	%			(0.5	)		-0.2	%			(0.4	)		-0.1	%
Total segment	$	108.2		46.0	%		$	0.9			0.4	%		$	109.1			46.4	%
Variance 2016/2015
Attritional	$	21.7		6.2		pts	$	(2.5	)		(1.0	)	pts	$	19.2			5.2		pts
Catastrophes		14.3		5.7		pts		(5.4	)		(2.2	)	pts		8.9			3.5		pts
Total segment	$	36.0		11.9		pts	$	(7.8	)		(3.2	)	pts	$	28.1			8.7		pts

	Nine Months Ended September 30,
	Current		Ratio %/				Prior			Ratio %/				Total			Ratio %/
(Dollars in millions)	Year		Pt Change				Years			Pt Change				Incurred			Pt Change
2016
Attritional	$	365.2		51.6	%		$	(1.3	)		-0.2	%		$	363.9			51.4	%
Catastrophes		15.8		2.2	%			(16.1	)		-2.3	%			(0.3	)		-0.1	%
Total segment	$	381.0		53.8	%		$	(17.4	)		-2.5	%		$	363.6			51.3	%
2015
Attritional	$	360.9		49.7	%		$	(17.5	)		-2.4	%		$	343.5			47.3	%
Catastrophes		0.1		0.0	%			(6.5	)		-0.9	%			(6.4	)		-0.9	%
Total segment	$	361.1		49.7	%		$	(24.0	)		-3.3	%		$	337.1			46.4	%
Variance 2016/2015
Attritional	$	4.3		1.9		pts	$	16.2			2.2		pts	$	20.4			4.1		pts
Catastrophes		15.7		2.2		pts		(9.6	)		(1.4	)	pts		6.1			0.8		pts
Total segment	$	19.9		4.1		pts	$	6.6			0.8		pts	$	26.5			4.9		pts
(Some amounts may not reconcile due to rounding.)

Incurred losses increased 25.8% to $137.2 million for the three months ended September 30, 2016 compared to $109.1 million for the three months ended September 30, 2015, primarily due to a $21.7 million increase in current year attritional losses, related to the impact of the increase in premiums earned, and an increase of $14.3 million on current year catastrophe losses.  This increase was partially offset by higher favorable development of $5.4 million on prior years' catastrophe losses, mainly related to the 2013 U.S. storms.  The current year catastrophe losses of $14.4 million for the three months ended September 30, 2016 were related to Hurricane Hermine ($6.8 million), U.S. Storms ($6.3 million) and the Fort McMurray Canada Wildfire ($1.3 million). The $0.1 million of current year catastrophe losses for the three months ended September 30, 2015 were due to the New South Wales storms.

Incurred losses increased by 7.9% to $363.6 million for the nine months ended September 30, 2016 compared to $337.1 million for the nine months ended September 30, 2015, primarily due to a $16.2 million impact from year over year lower favorable development on prior years attritional losses and an increase of $15.7 million in current year catastrophe losses.  These increases were partially offset by more favorable development of $9.6 million on prior years' catastrophe losses. The current year catastrophe losses of $15.8 million for the nine months ended September 30, 2016 were related to Hurricane Hermine ($6.8 million) and U.S. Storms ($9.6 million).  The $0.1 million of current year catastrophe losses for the

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nine months ended September 30, 2015 were due to the New South Wales storms.  The $16.1 million of prior years' catastrophes for the nine months ended September 30, 2016 mainly related to the 2011 Japan earthquake.

Segment Expenses.  Commission and brokerage decreased by 1.6% to $48.1 million for the three months ended September 30, 2016 compared to $48.9 million for the three months ended September 30, 2015.  Commission and brokerage increased by 4.2% to $148.0 million for the nine months ended September 30, 2016 compared to $141.9 million for the nine months ended September 30, 2015.  The increases were mainly due to the impact from affiliated quota share agreements and changes in the mix of business.

Segment other underwriting expenses increased to $14.3 million for the three months ended September 30, 2016 from $13.7 million for the three months ended September 30, 2015.  Segment other underwriting expenses increased to $39.9 million for the nine months ended September 30, 2016 from $37.1 million for the nine months ended September 30, 2015.  The increases were primarily due to the impact of changes in the mix of business and higher compensation costs.

International.

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

	Three Months Ended September 30,												Nine Months Ended September 30,
(Dollars in millions)	2016			2015			Variance			% Change			2016			2015			Variance			% Change
Gross written premiums	$	353.2		$	374.1		$	(20.9	)		-5.6	%	$	939.9		$	1,019.4		$	(79.6	)		-7.8	%
Net written premiums		141.3			148.0			(6.7	)		-4.5	%		353.4			417.1			(63.6	)		-15.3	%
Premiums earned	$	128.4		$	135.1		$	(6.8	)		-5.0	%	$	372.8		$	433.8		$	(60.9	)		-14.0	%
Incurred losses and LAE		41.8			128.5			(86.7	)		-67.4	%		206.7			339.9			(133.2	)		-39.2	%
Commission and brokerage		30.2			27.9			2.3			8.1	%		82.4			93.2			(10.7	)		-11.5	%
Other underwriting expenses		9.2			9.1			0.1			1.0	%		25.0			25.3			(0.3	)		-1.1	%
Underwriting gain (loss)	$	47.1		$	(30.4	)	$	77.5		NM			$	58.7		$	(24.6	)	$	83.3		NM
										Point Chg												Point Chg
Loss ratio		32.6	%		95.1	%					(62.5	)		55.4	%		78.4	%					(23.0	)
Commission and brokerage ratio		23.5	%		20.7	%					2.8			22.1	%		21.5	%					0.6
Other underwriting ratio		7.2	%		6.7	%					0.5			6.8	%		5.8	%					1.0
Combined ratio		63.3	%		122.5	%					(59.2	)		84.3	%		105.7	%					(21.4	)
(NM, not meaningful)

Premiums.Gross written premiums decreased by 5.6% to $353.2 million for the three months ended September 30, 2016 compared to $374.1 million for the three months ended September 30, 2015, primarily due to a decline in Middle East business and the negative impact of approximately $6.2 million from the movement of foreign exchange rates.  Net written premiums decreased by 4.5% to $141.3 million for the three months ended September 30, 2016 compared to $148.0 million for the three months ended September 30, 2015, which is consistent with the change in gross written premiums.  Premiums earned decreased 5.0% to $128.4 million for the three months ended September 30, 2016 compared to $135.1 million for the three months ended September 30, 2015.  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.

Gross written premiums decreased by 7.8% to $939.9 million for the nine months ended September 30, 2016 compared to $1,019.4 million for the nine months ended September 30, 2015, primarily due to declines in Latin American, Middle East and Asian business and the negative impact of approximately $38.1 million from the movement of foreign exchange rates.  Net written premiums decreased by 15.3% to $353.4 million for the nine months ended September 30, 2016 compared to $417.1 million for the nine months ended September 30, 2015.  The difference between the change in gross written premiums compared to the change in net written premiums is primarily due to varying utilization of reinsurance related to the quota share contracts.  Premiums earned decreased 14.0% to $372.8 million for the nine months ended

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September 30, 2016 compared to $433.8 million for the nine months ended September 30, 2015.  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 September 30,
	Current			Ratio %/				Prior			Ratio %/				Total			Ratio %/
(Dollars in millions)	Year			Pt Change				Years			Pt Change				Incurred			Pt Change
2016
Attritional	$	49.3			38.4	%		$	-			0.0	%		$	49.3			38.4	%
Catastrophes		6.5			5.1	%			(14.0	)		-10.9	%			(7.5	)		-5.8	%
Total segment	$	55.8			43.5	%		$	(14.0	)		-10.9	%		$	41.8			32.6	%
2015
Attritional	$	111.0			82.2	%		$	0.9			0.7	%		$	112.0			82.9	%
Catastrophes		17.0			12.6	%			(0.6	)		-0.4	%			16.5			12.2	%
Total segment	$	128.1			94.8	%		$	0.4			0.3	%		$	128.5			95.1	%
Variance 2016/2015
Attritional	$	(61.7	)		(43.8	)	pts	$	(0.9	)		(0.7	)	pts	$	(62.7	)		(44.5	)	pts
Catastrophes		(10.5	)		(7.5	)	pts		(13.4	)		(10.5	)	pts		(24.0	)		(18.0	)	pts
Total segment	$	(72.3	)		(51.3	)	pts	$	(14.3	)		(11.2	)	pts	$	(86.7	)		(62.5	)	pts

	Nine Months Ended September 30,
	Current			Ratio %/				Prior			Ratio %/				Total			Ratio %/
(Dollars in millions)	Year			Pt Change				Years			Pt Change				Incurred			Pt Change
2016
Attritional	$	185.6			49.8	%		$	(3.4	)		-0.9	%		$	182.3			48.9	%
Catastrophes		45.2			12.1	%			(20.8	)		-5.6	%			24.4			6.5	%
Total segment	$	230.8			61.9	%		$	(24.1	)		-6.5	%		$	206.7			55.4	%
2015
Attritional	$	304.9			70.3	%		$	1.6			0.4	%		$	306.5			70.7	%
Catastrophes		35.1			8.1	%			(1.7	)		-0.4	%			33.4			7.7	%
Total segment	$	340.0			78.4	%		$	(0.1	)		0.0	%		$	339.9			78.4	%
Variance 2016/2015
Attritional	$	(119.3	)		(20.5	)	pts	$	(5.0	)		(1.3	)	pts	$	(124.2	)		(21.8	)	pts
Catastrophes		10.1			4.0		pts		(19.1	)		(5.2	)	pts		(9.0	)		(1.2	)	pts
Total segment	$	(109.2	)		(16.5	)	pts	$	(24.0	)		(6.5	)	pts	$	(133.2	)		(23.0	)	pts
(Some amounts may not reconcile due to rounding.)

Incurred losses and LAE decreased by 67.4% to $41.8 million for the three months ended September 30, 2016 compared to $128.5 million for the three months ended September 30, 2015, primarily due to a decrease in current year attritional losses of $61.7 million, mainly related to lower Latin American and Asian losses in 2016 and $14.9 million of losses from the explosion at the Chinese port of Tianjin in 2015, a decrease of $10.5 million in current year catastrophe losses and $13.4 million of more favorable development in prior years catastrophe losses.  The current year catastrophe losses of $6.5 million for the three months ended September 30, 2016 were related to the Fort McMurray Canada Wildfire ($3.7 million), the Taiwan earthquake ($2.3 million) U.S. Storms ($0.3 million) and the Ecuador earthquake ($0.2 million). The $17.0 million of current year catastrophe losses for the three months ended September 30, 2015 were entirely related to the 2015 Chilean earthquake.  The $14.0 million of favorable development of prior years' catastrophe losses for the three months ended September 30, 2016 related primarily to the 2015 Chilean earthquake.

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Incurred losses and LAE decreased by 39.2% to $206.7 million for the nine months ended September 30, 2016 compared to $339.9 million for the nine months ended September 30, 2015, primarily due to a decrease in current year attritional losses of $119.3 million, related to lower Latin American and Asian losses in 2016 and $14.9 million of losses from the explosion at the Chinese Port of Tianjin in 2015, more favorable development of prior year catastrophe losses of $19.1 million and the impact of the decrease in premiums earned, partially offset by an increase of $10.1 million in current year catastrophe losses.  The $45.2 million of current year catastrophe losses for the nine months ended September 30, 2016 were due to the Fort McMurray Canada wildfire ($25.4 million), the Ecuador earthquake ($11.8 million), the Taiwan earthquake ($7.6 million) and U.S. Storms ($0.3 million). The $35.1 million of current year catastrophe losses for the nine months ended September 30, 2015 were due to the 2015 Chilean earthquake ($17.4 million), Northern Chile storms ($9.8 million) and the New South Wales storms ($7.9 million). The 2016 favorable development in prior years' catastrophe losses related primarily to the 2015 Chilean and 2011 Japanese earthquakes.

Segment Expenses.Commission and brokerage increased 8.1% to $30.2 million for the three months ended September 30, 2016 compared to $27.9 million for the three months ended September 30, 2015.  The quarter over quarter increase is due to higher contingent commission and the impact of quota share contracts.  Commission and brokerage decreased 11.5% to $82.4 million for the nine months ended September 30, 2016 compared to $93.2 million for the nine months ended September 30, 2015.  The year over year decrease was mainly due to the impact of the decrease in premiums earned and changes in the mix of business.

Segment other underwriting expenses increased slightly to $9.2 million for the three months ended September 30, 2016 compared to $9.1 million for the three months ended September 30, 2015, and decreased slightly to $25.0 million for the nine months ended September 30, 2016 compared to $25.3 million for the nine months ended September 30, 2015.

Insurance.

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

	Three Months Ended September 30,												Nine Months Ended September 30,
(Dollars in millions)	2016			2015			Variance			% Change			2016			2015			Variance			% Change
Gross written premiums	$	498.0		$	473.0		$	25.0			5.3	%	$	1,276.8		$	1,130.2		$	146.5			13.0	%
Net written premiums		154.1			203.7			(49.7	)		-24.4	%		462.8			490.1			(27.3	)		-5.6	%
Premiums earned	$	179.1		$	175.6		$	3.4			2.0	%	$	445.6		$	428.7		$	16.9			3.9	%
Incurred losses and LAE		122.5			133.2			(10.7	)		-8.0	%		366.0			325.5			40.5			12.4	%
Commission and brokerage		7.3			(4.7	)		11.9		NM				(3.9	)		6.5			(10.4	)		-159.9	%
Other underwriting expenses		40.7			34.1			6.6			19.2	%		116.8			94.7			22.1			23.3	%
Underwriting gain (loss)	$	8.6		$	13.0		$	(4.4	)		-33.8	%	$	(33.3	)	$	1.9		$	(35.3	)	NM
										Point Chg												Point Chg
Loss ratio		68.4	%		75.8	%					(7.4	)		82.1	%		75.9	%					6.2
Commission and brokerage ratio		4.1	%		-2.7	%					6.8			-0.9	%		1.5	%					(2.4	)
Other underwriting ratio		22.7	%		19.5	%					3.2			26.3	%		22.2	%					4.1
Combined ratio		95.2	%		92.6	%					2.6			107.5	%		99.6	%					7.9
(NM, not meaningful)

Premiums. Gross written premiums increased by 5.3% to $498.0 million for the three months ended September 30, 2016 compared to $473.0 million for the three months ended September 30, 2015.  This increase was primarily driven by increases in accident and health business and additional expansion of other insurance lines of business.  Net written premiums decreased by 24.4% to $154.1 million for the three months ended September 30, 2016 compared to $203.7 million for the three months ended September 30, 2015.  The difference between the change in gross written premiums compared to the change in net written premiums is primarily due to the transfer of the crop business to the U.S. Reinsurance segment as a result of the Heartland sale and entering into a new crop reinsurance contract.  Premiums earned increased 2.0% to $179.1 million for the three months ended September 30, 2016 compared to $175.6 million for the

40

three months ended September 30, 2015. 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.

Gross written premiums increased by 13.0% to $1,276.8 million for the nine months ended September 30, 2016 compared to $1,130.2 million for the nine months ended September 30, 2015.  This increase was primarily driven by increases in accident and health business and additional expansion of other insurance lines of business.  Net written premiums decreased by 5.6% to $462.8 million for the nine months ended September 30, 2016 compared to $490.1 million for the nine months ended September 30, 2015.  The difference between the change in gross written premiums compared to the change in the net written premiums is primarily due to the transfer of the crop business as described above.  Premiums earned increased 3.9% to $445.6 million for the nine months ended September 30, 2016 compared to $428.7 million for the nine months ended September 30, 2015. 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 September 30,
	Current			Ratio %/				Prior			Ratio %/				Total			Ratio %/
(Dollars in millions)	Year			Pt Change				Years			Pt Change				Incurred			Pt Change
2016
Attritional	$	121.4			67.8	%		$	1.1			0.6	%		$	122.5			68.4	%
Catastrophes		-			0.0	%			-			0.0	%			0.0			0.0	%
Total segment	$	121.4			67.8	%		$	1.1			0.6	%		$	122.5			68.4	%
2015
Attritional	$	132.0			75.2	%		$	0.9			0.5	%		$	132.9			75.7	%
Catastrophes		-			0.0	%			0.2			0.1	%			0.2			0.1	%
Total segment	$	132.0			75.2	%		$	1.2			0.7	%		$	133.2			75.8	%
Variance 2016/2015
Attritional	$	(10.6	)		(7.4	)	pts	$	0.2			0.1		pts	$	(10.4	)		(7.3	)	pts
Catastrophes		-			-		pts		(0.2	)		(0.1	)	pts		(0.2	)		(0.1	)	pts
Total segment	$	(10.6	)		(7.4	)	pts	$	(0.1	)		(0.1	)	pts	$	(10.7	)		(7.4	)	pts

	Nine Months Ended September 30,
	Current		Ratio %/				Prior			Ratio %/				Total		Ratio %/
(Dollars in millions)	Year		Pt Change				Years			Pt Change				Incurred		Pt Change
2016
Attritional	$	343.8		77.1	%		$	5.6			1.3	%		$	349.4		78.4	%
Catastrophes		16.7		3.7	%			(0.2	)		0.0	%			16.5		3.7	%
Total segment	$	360.5		80.8	%		$	5.4			1.3	%		$	366.0		82.1	%
2015
Attritional	$	307.4		71.7	%		$	17.9			4.1	%		$	325.3		75.8	%
Catastrophes		-		0.0	%			0.3			0.1	%			0.3		0.1	%
Total segment	$	307.4		71.7	%		$	18.2			4.2	%		$	325.5		75.9	%
Variance 2016/2015
Attritional	$	36.4		5.4		pts	$	(12.3	)		(2.8	)	pts	$	24.1		2.6		pts
Catastrophes		16.7		3.7		pts		(0.5	)		(0.1	)	pts		16.2		3.6		pts
Total segment	$	53.1		9.1		pts	$	(12.8	)		(2.9	)	pts	$	40.5		6.2		pts
(Some amounts may not reconcile due to rounding.)

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Incurred losses and LAE decreased by 8.0% to $122.5 million for the three months ended September 30, 2016 compared to $133.2 million for the three months ended September 30, 2015, mainly due to a decrease of $10.6 million in current year attritional losses, primarily due to a decline in the workers' compensation loss ratio.  There were no current year catastrophe losses for the three months ended September 30, 2016 and 2015.

Incurred losses and LAE increased by 12.4% to $366.0 million for the nine months ended September 30, 2016 compared to $325.5 million for the nine months ended September 30, 2015, mainly due to an increase of $36.4 million in current year attritional losses, primarily related to the impact of the increase in premiums earned and an increase of $16.7 million in current year catastrophe losses, partially offset by the impact from less unfavorable development of $12.3 million in prior years' attritional losses mainly related to runoff umbrella and construction liability business.  The $16.7 million of current year catastrophe losses for the nine months ended September 30, 2016 were due to the U.S. storms ($15.0 million) and the Fort McMurray Canada wildfire ($1.7 million).  There were no current year catastrophe losses for the nine months ended September 30, 2015.

Segment Expenses.Commission and brokerage increased to $7.3 million for the three months ended September 30, 2016 compared to $(4.7) million for the three months ended September 30, 2015.  Commission and brokerage decreased to ($3.9) million for the nine months ended September 30, 2016 compared to $6.5 million for the nine months ended September 30, 2015.  The fluctuations were mainly due to the impact from affiliated quota share agreements and changes in mix of business.

Segment other underwriting expenses increased to $40.7 million for the three months ended September 30, 2016 compared to $34.1 million for the three months ended September 30, 2015 and increased to $116.8 million for the nine months ended September 30, 2016 compared to $94.7 million for the nine months ended September 30, 2015.  The increases were primarily due to the impact of the increases in premiums earned and increased expenses due to the build out of our insurance platform.

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 $9.8 billion investment portfolio, at September 30, 2016, 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.

42

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 $835.0 million of mortgage-backed securities in the $6,018.9 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.

The table below displays the potential impact of market value fluctuations and after-tax unrealized appreciation on our fixed maturity portfolio (including $188.4 million of short-term investments) for the period 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 September 30, 2016
(Dollars in millions)		-200			-100			0			100			200
Total Market/Fair Value	$	6,552.1		$	6,379.8		$	6,207.3		$	6,023.8		$	5,835.2
Market/Fair Value Change from Base (%)		5.6	%		2.8	%		0.0	%		-3.0	%		-6.0	%
Change in Unrealized Appreciation
After-tax from Base ($)	$	224.1		$	112.2		$	-		$	(119.3	)	$	(241.9	)

We had $8,306.4 million and $7,940.7 million of gross reserves for losses and LAE as of September 30, 2016 and December 31, 2015, 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 September 30, 2016
(Dollars in millions)		-20%			-10%			0%		10%		20%
Fair/Market Value of the Equity Portfolio	$	768.9		$	865.0		$	961.1	$	1,057.2	$	1,153.3
After-tax Change in Fair/Market Value		(124.9	)		(62.5	)		-		62.5		124.9

43

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, the impact on the market value of available for sale fixed maturities due to changes in foreign currency exchange rates, in relation to functional currency, is reflected as part of other comprehensive income.  Conversely, the impact of changes in foreign currency exchange rates, in relation to functional currency, on other assets and liabilities is reflected through net income as a component of other income (expense).  In addition, 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.

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 ITEM 1A, "Risk Factors" in the Company's most recent 10-K filing. 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.

44

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.

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.

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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

46

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:  November 14, 2016

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.

November 14, 2016

/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.

November 14, 2016

/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 September 30, 2016 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.

November 14, 2016

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

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

XML

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 01, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
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

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
ASSETS:
Fixed maturities - available for sale, at market value (amortized cost: 2016, $5,862,000; 2015, $5,335,472)	$ 6,014,941	$ 5,356,477
Fixed maturities - available for sale, at fair value	3,982	2,102
Equity securities - available for sale, at fair value	961,115	1,215,377
Short-term investments	188,359	563,536
Other invested assets (cost: 2016, $615,735; 2015, $450,154)	615,735	450,154
Other invested assets, at fair value	1,725,367	1,773,214
Cash	285,178	155,429
Total investments and cash	9,794,677	9,516,289
Note receivable - affiliated	250,000	250,000
Accrued investment income	47,699	41,727
Premiums receivable	1,288,137	1,129,656
Reinsurance receivables - unaffiliated	827,281	716,982
Reinsurance receivables - affiliated	3,771,322	3,742,105
Funds held by reinsureds	189,984	176,712
Deferred acquisition costs	77,725	92,651
Prepaid reinsurance premiums	869,282	772,686
Other assets	318,615	256,395
TOTAL ASSETS	17,434,722	16,695,203
LIABILITIES:
Reserve for losses and loss adjustment expenses	8,306,404	7,940,720
Unearned premium reserve	1,448,915	1,349,799
Funds held under reinsurance treaties	113,566	101,531
Losses in the course of payment	127,976	125,592
Commission reserves	71,518	51,873
Other net payable to reinsurers	1,020,995	1,225,260
4.868% Senior notes due 6/1/2044	396,684	396,594
6.6% Long term notes due 5/1/2067	236,438	236,364
Accrued interest on debt and borrowings	12,341	3,537
Income taxes	163,956	68,024
Unsettled securities payable	66,976	15,040
Other liabilities	227,998	249,658
Total liabilities	12,193,767	11,763,992
Commitments and Contingencies (Note 5)
STOCKHOLDER'S EQUITY:
Common stock, par value: $0.01; 3,000 shares authorized; 1,000 shares issued and outstanding (2016 and 2015)
Additional paid-in capital	384,974	374,789
Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) of $29,808 at 2016 and ($33,458) at 2015	55,349	(62,136)
Retained earnings	4,800,632	4,618,558
Total stockholder's equity	5,240,955	4,931,211
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$ 17,434,722	$ 16,695,203

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Fixed maturities - available for sale, amortized cost	$ 5,862,000	$ 5,335,472
Other invested assets, cost	$ 615,735	$ 450,154
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)	$ 29,808	$ (33,458)
Long Term Subordinated Debt [Member]
Debt instrument, stated interest rate	6.60%	6.60%
Debt instrument, maturity date	May 01, 2067	May 01, 2067
Senior Notes 4.868% [Member] | Senior Notes [Member]
Debt instrument, stated interest rate	4.868%	4.868%
Debt instrument, maturity date	Jun. 01, 2044	Jun. 01, 2044

XML

Consolidated Statements Of Operations And Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
REVENUES:
Premiums earned	$ 556,653	$ 546,050	$ 1,527,433	$ 1,588,536
Net investment income	64,570	63,363	196,887	206,869
Net realized capital gains (losses):
Other-than-temporary impairments on fixed maturity securities	(836)	(10,502)	(25,242)	(43,433)
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income (loss)
Realized gain (loss) on sale of subsidiary	(28,032)	94,704	(28,032)	94,704
Other net realized capital gains (losses)	(21,195)	(205,897)	(34,001)	(100,445)
Total net realized capital gains (losses)	(50,063)	(121,695)	(87,275)	(49,174)
Other income (expense)	(13,208)	10,828	(10,806)	38,950
Total revenues	557,952	498,546	1,626,239	1,785,181
CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses	301,603	370,754	936,201	1,002,513
Commission, brokerage, taxes and fees	85,563	72,151	226,511	241,635
Other underwriting expenses	64,149	56,953	181,706	157,069
Corporate expenses	1,835	1,637	6,181	5,031
Interest, fee and bond issue cost amortization expense	8,859	8,859	26,576	26,576
Total claims and expenses	462,009	510,354	1,377,175	1,432,824
INCOME (LOSS) BEFORE TAXES	95,943	(11,808)	249,064	352,357
Income tax expense (benefit)	21,145	(7,149)	66,990	107,306
NET INCOME (LOSS)	74,798	(4,659)	182,074	245,051
Other comprehensive income (loss), net of tax :
Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period	3,808	(29,878)	62,672	(49,866)
Less: reclassification adjustment for realized losses (gains) included in net income (loss)	(2,767)	11,625	23,085	48,951
Total URA(D) on securities arising during the period	1,041	(18,253)	85,757	(915)
Foreign currency translation adjustments	(2,642)	(27,473)	27,779	(44,636)
Benefit plan actuarial net gain (loss) for the period
Reclassification adjustment for amortization of net (gain) loss included in net income (loss)	1,268	1,556	3,949	4,769
Total benefit plan net gain (loss) for the period	1,268	1,556	3,949	4,769
Total other comprehensive income (loss), net of tax	(333)	(44,170)	117,485	(40,782)
COMPREHENSIVE INCOME (LOSS)	$ 74,465	$ (48,829)	$ 299,559	$ 204,269

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Consolidated Statements Of Changes In Stockholder's Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income (Loss), Net Of Deferred Income Taxes [Member]	Retained Earnings [Member]	Total
Balance, beginning of period, shares at Dec. 31, 2014	1,000
Balance, beginning of period at Dec. 31, 2014		$ 362,293	$ 4,519	$ 4,205,905
Share-based compensation plans		10,273
Net increase (decrease) during the period			(40,782)		$ (40,782)
Net income (loss)				245,051	245,051
Balance, end of period, shares at Sep. 30, 2015	1,000
Balance, end of period at Sep. 30, 2015		372,566	(36,263)	4,450,956	4,787,259
Balance, beginning of period, shares at Jun. 30, 2015	1,000
Balance, beginning of period at Jun. 30, 2015		369,284	7,907	4,455,615
Share-based compensation plans		3,282
Net increase (decrease) during the period			(44,170)		(44,170)
Net income (loss)				(4,659)	(4,659)
Balance, end of period, shares at Sep. 30, 2015	1,000
Balance, end of period at Sep. 30, 2015		372,566	(36,263)	4,450,956	$ 4,787,259
Balance, beginning of period, shares at Dec. 31, 2015	1,000				1,000
Balance, beginning of period at Dec. 31, 2015		374,789	(62,136)	4,618,558	$ 4,931,211
Share-based compensation plans		10,185
Net increase (decrease) during the period			117,485		117,485
Net income (loss)				182,074	$ 182,074
Balance, end of period, shares at Sep. 30, 2016	1,000				1,000
Balance, end of period at Sep. 30, 2016		384,974	55,349	4,800,632	$ 5,240,955
Balance, beginning of period, shares at Jun. 30, 2016	1,000
Balance, beginning of period at Jun. 30, 2016		382,537	55,682	4,725,834
Share-based compensation plans		2,437
Net increase (decrease) during the period			(333)		(333)
Net income (loss)				74,798	$ 74,798
Balance, end of period, shares at Sep. 30, 2016	1,000				1,000
Balance, end of period at Sep. 30, 2016		$ 384,974	$ 55,349	$ 4,800,632	$ 5,240,955

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Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 182,074	$ 245,051
Adjustments to reconcile net income to net cash provided by operating activities:
Decrease (increase) in premiums receivable	(155,717)	(225,922)
Decrease (increase) in funds held by reinsureds, net	(948)	589
Decrease (increase) in reinsurance receivables	(120,745)	(169,328)
Decrease (increase) in income taxes	33,279	(212)
Decrease (increase) in prepaid reinsurance premiums	(94,400)	(44,177)
Increase (decrease) in reserve for losses and loss adjustment expenses	322,226	107,006
Increase (decrease) in unearned premiums	94,847	34,627
Increase (decrease) in other net payable to reinsurers	(209,260)	(50,813)
Increase (decrease) in losses in course of payment	1,860	133,244
Change in equity adjustments in limited partnerships	(17,067)	(16,409)
Distribution of limited partnership income	31,739	36,883
Change in other assets and liabilities, net	(124,955)	(2,719)
Non-cash compensation expense	7,453	6,303
Amortization of bond premium (accrual of bond discount)	13,754	13,978
Amortization of underwriting discount on senior notes	3	3
Net realized capital (gains) losses	87,275	49,174
Net cash provided by (used in) operating activities	51,418	117,278
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from fixed maturities matured/called - available for sale, at market value	572,224	696,268
Proceeds from fixed maturities sold - available for sale, at market value	433,655	418,284
Proceeds from fixed maturities sold - available for sale, at fair value	1,587	1,824
Proceeds from equity securities sold - available for sale, at market value		16
Proceeds from equity securities sold - available for sale, at fair value	531,894	442,276
Proceeds from sale of subsidiary (net of cash disposed)	47,721	3,934
Distributions from other invested assets	1,119,428	36,130
Cost of fixed maturities acquired - available for sale, at market value	(1,516,092)	(1,403,187)
Cost of fixed maturities acquired - available for sale, at fair value	(3,940)	(234)
Cost of equity securities acquired - available for sale, at fair value	(253,041)	(442,306)
Cost of other invested assets acquired	(1,299,682)	(49,575)
Net change in short-term investments	376,832	176,876
Net change in unsettled securities transactions	40,771	(12,069)
Net cash provided by (used in) investing activities	51,357	(131,763)
CASH FLOWS FROM FINANCING ACTIVITIES:
Tax benefit from share-based compensation	2,732	3,970
Net cash provided by (used in) financing activities	2,732	3,970
EFFECT OF EXCHANGE RATE CHANGES ON CASH	24,242	(37,328)
Net increase (decrease) in cash	129,749	(47,843)
Cash, beginning of period	155,429	323,975
Cash, end of period	285,178	276,132
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid (recovered)	30,877	104,727
Interest paid	$ 17,608	$ 17,608

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General

9 Months Ended

Sep. 30, 2016

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) and the "Company" means Holdings and its subsidiaries.

During the third quarter of 2016, the Company established domestic subsidiaries, Everest Premier Insurance Company ("Everest Premier") and Everest Denali Insurance Company ("Everest Denali"), which will be used in the continued expansion of the Insurance operations.

Effective August 24, 2016, the Company sold its wholly-owned subsidiary, Heartland Crop Insurance Company ("Heartland"), a managing agent for crop insurance, to CGB Diversified Services, Inc. ("CGB"). The operating results of Heartland for the period owned are included within the Company's financial statements.

Effective July 13, 2015, the Company sold all of the outstanding shares of capital stock of a wholly-owned subsidiary entity, Mt. McKinley Insurance Company ("Mt. McKinley"), to Clearwater Insurance Company. The operating results of Mt. McKinley for the three and nine months ended September 30, 2015 are included within the Company's financial statements.

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Basis Of Presentation

9 Months Ended

Sep. 30, 2016

Basis Of Presentation [Abstract]

Basis Of Presentation

2.BASIS OF PRESENTATION

The unaudited consolidated financial statements of the Company for the three and nine months ended September 30, 2016 and 2015 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, 2015 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 nine months ended September 30, 2016 and 2015 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, 2015, 2014 and 2013 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 2016 presentation.

Application of Recently Issued Accounting Standard Changes.

Disclosures about Short-Duration Contracts. In May 2015, the FASB issued ASU 2015-09, authoritative guidance regarding required disclosures associated with short duration insurance contracts.  The new disclosure requirements focus on information about initial claim estimates and subsequent claim estimate adjustment, methodologies in estimating claims and the timing, frequency and severity of claims related to short duration insurance contracts. This guidance is effective for annual reporting periods beginning after December 15, 2015 and interim reporting periods beginning after December 15, 2016.  Therefore, the initial presentation of this guidance in the Company's financial statements and footnotes will be for its 10-K filing as of December 31, 2016. The Company does not anticipate that it will have a significant impact on its financial statements.

Debt Issuance Costs. In April 2015, The FASB issued ASU 2015�03, authoritative guidance on the presentation of debt issuance costs.  This guidance requires that debt issuance costs be presented within the balance sheet as a reduction of the carrying value of the debt liability, rather than as a separate asset.  This guidance is effective for annual reporting periods beginning after December 15, 2015 and related interim reporting periods.  Based upon this guidance, the Company has adjusted prior financial statements and footnotes to conform with this new presentation.

Consolidation. In February 2015, the FASB issued ASU 2015-02, authoritative guidance regarding consolidation of reporting entities.  The new guidance focuses on the required evaluation of whether certain legal entities should be consolidated.  This guidance is effective for annual and interim reporting periods beginning after December 15, 2015. The Company has determined that the guidance will not have a significant impact on its financial statements.

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Investments

9 Months Ended

Sep. 30, 2016

Investments [Abstract]

Investments

3.  INVESTMENTS

The amortized cost, market value and gross unrealized appreciation and depreciation of available for sale, fixed maturity, equity security investments, carried at market value and other-than-temporary impairments ("OTTI") in accumulated other comprehensive income ("AOCI") are as follows for the periods indicated:

	At September 30, 2016
	Amortized		Unrealized		Unrealized			Market		OTTI in AOCI
(Dollars in thousands)	Cost		Appreciation		Depreciation			Value		(a)
Fixed maturity securities
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	423,167	$	6,471	$	(470	)	$	429,168	$	-
Obligations of U.S. states and political subdivisions		725,149		40,657		(802	)		765,004		-
Corporate securities		2,192,089		57,124		(10,576	)		2,238,637		3,802
Asset-backed securities		167,721		1,316		(12	)		169,025		-
Mortgage-backed securities
Commercial		75,965		1,567		(35	)		77,497		-
Agency residential		750,339		7,983		(875	)		757,447		-
Non-agency residential		89		14		-			103		-
Foreign government securities		530,381		29,667		(6,127	)		553,921		-
Foreign corporate securities		997,100		34,616		(7,577	)		1,024,139		327
Total fixed maturity securities	$	5,862,000	$	179,415	$	(26,474	)	$	6,014,941	$	4,129
Equity securities	$	-	$	-	$	-		$	-	$	-

	At December 31, 2015
	Amortized		Unrealized		Unrealized			Market		OTTI in AOCI
(Dollars in thousands)	Cost		Appreciation		Depreciation			Value		(a)
Fixed maturity securities
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	329,281	$	2,422	$	(718	)	$	330,985	$	-
Obligations of U.S. states and political subdivisions		669,945		34,020		(890	)		703,075		-
Corporate securities		2,011,997		27,286		(70,725	)		1,968,558		(86	)
Asset-backed securities		145,755		290		(1,063	)		144,982		-
Mortgage-backed securities
Commercial		61,527		1,430		(511	)		62,446		-
Agency residential		714,907		3,994		(6,603	)		712,298		-
Non-agency residential		126		24		-			150		-
Foreign government securities		447,244		24,255		(8,425	)		463,074		-
Foreign corporate securities		954,690		27,616		(11,397	)		970,909		17
Total fixed maturity securities	$	5,335,472	$	121,337	$	(100,332	)	$	5,356,477	$	(69	)

^(a)  Represents the amount of OTTI recognized in AOCI.  Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date.

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 September 30, 2016				At December 31, 2015
	Amortized		Market		Amortized		Market
(Dollars in thousands)	Cost		Value		Cost		Value
Fixed maturity securities - available for sale
Due in one year or less	$	350,845	$	349,366	$	330,029	$	330,509
Due after one year through five years		2,916,564		2,967,946		2,617,079		2,618,056
Due after five years through ten years		803,666		833,389		870,266		856,230
Due after ten years		796,811		860,168		595,783		631,806
Asset-backed securities		167,721		169,025		145,755		144,982
Mortgage-backed securities
Commercial		75,965		77,497		61,527		62,446
Agency residential		750,339		757,447		714,907		712,298
Non-agency residential		89		103		126		150
Total fixed maturity securities	$	5,862,000	$	6,014,941	$	5,335,472	$	5,356,477

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 Eded						Nine Months Eded
	September 30,						September 30,
(Dollars in thousands)	2016			2015			2016			2015
Increase (decrease) during the period between the market value and cost
of investments carried at market value, and deferred taxes thereon:
Fixed maturity securities	$	4,047		$	(28,103	)	$	127,736		$	(11,164	)
Fixed maturity securities, other-than-temporary impairment		(2,444	)		22			4,199			9,757
Equity Securities		-			-			-			(1	)
Change in unrealized  appreciation (depreciation), pre-tax		1,603			(28,081	)		131,935			(1,408	)
Deferred tax benefit (expense)		(1,418	)		9,835			(44,709	)		3,907
Deferred tax benefit (expense), other-than-temporary impairment		856			(7	)		(1,469	)		(3,414	)
Change in unrealized appreciation (depreciation),
net of deferred taxes, included in stockholder's equity	$	1,041		$	(18,253	)	$	85,757		$	(915	)

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 September 30, 2016 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	$	42,928	$	(470	)	$	-	$	-		$	42,928	$	(470	)
Obligations of U.S. states and political subdivisions		72,100		(391	)		633		(411	)		72,733		(802	)
Corporate securities		185,486		(2,571	)		185,850		(8,005	)		371,336		(10,576	)
Asset-backed securities		-		-			17,850		(12	)		17,850		(12	)
Mortgage-backed securities
Commercial		1,511		(3	)		3,282		(32	)		4,793		(35	)
Agency residential		48,246		(106	)		99,400		(769	)		147,646		(875	)
Non-agency residential		-		-			-		-			-		-
Foreign government securities		14,728		(261	)		61,698		(5,866	)		76,426		(6,127	)
Foreign corporate securities		83,716		(2,070	)		69,922		(5,507	)		153,638		(7,577	)
Total fixed maturity securities	$	448,715	$	(5,872	)	$	438,635	$	(20,602	)	$	887,350	$	(26,474	)
Equity securities		-		-			-		-			-		-
Total	$	448,715	$	(5,872	)	$	438,635	$	(20,602	)	$	887,350	$	(26,474	)

	Duration of Unrealized Loss at September 30, 2016 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	$	14,922	$	(259	)	$	23,232	$	(3,449	)	$	38,154	$	(3,708	)
Due in one year through five years		185,270		(3,363	)		246,906		(13,503	)		432,176		(16,866	)
Due in five years through ten years		119,725		(1,682	)		46,244		(2,792	)		165,969		(4,474	)
Due after ten years		79,041		(459	)		1,721		(45	)		80,762		(504	)
Asset-backed securities		-		-			17,850		(12	)		17,850		(12	)
Mortgage-backed securities		49,757		(109	)		102,682		(801	)		152,439		(910	)
Total fixed maturity securities	$	448,715	$	(5,872	)	$	438,635	$	(20,602	)	$	887,350	$	(26,474	)

The aggregate market value and gross unrealized losses related to investments in an unrealized loss position at September 30, 2016 were $887,350 thousand and $26,474 thousand, respectively.  The market value of securities for the single issuer whose securities comprised the largest unrealized loss position at September 30, 2016, 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 $5,872 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.  The majority of these unrealized losses are attributable to net unrealized foreign exchange losses, $5,564 thousand, as the U.S. dollar has strengthened against other currencies.  The $20,602 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 and foreign government securities.  The majority of these unrealized losses are attributable to net unrealized foreign exchange losses, $19,030 thousand, as the U.S. dollar has strengthened against other currencies.  The Company did not have any sub-prime or alt-A loans with gross unrealized depreciation at September 30, 2016.  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, 2015 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	$	216,352	$	(712	)	$	692	$	(6	)	$	217,044	$	(718	)
Obligations of U.S. states and political subdivisions		6,434		(84	)		4,917		(806	)		11,351		(890	)
Corporate securities		866,715		(49,034	)		307,215		(21,691	)		1,173,930		(70,725	)
Asset-backed securities		102,506		(791	)		28,048		(272	)		130,554		(1,063	)
Mortgage-backed securities
Commercial		26,483		(511	)		-		-			26,483		(511	)
Agency residential		320,285		(3,094	)		150,095		(3,509	)		470,380		(6,603	)
Non-agency residential		-		-			-		-			-		-
Foreign government securities		61,498		(2,182	)		77,911		(6,243	)		139,409		(8,425	)
Foreign corporate securities		324,904		(6,289	)		76,951		(5,108	)		401,855		(11,397	)
Total fixed maturity securities	$	1,925,177	$	(62,697	)	$	645,829	$	(37,635	)	$	2,571,006	$	(100,332	)

	Duration of Unrealized Loss at December 31, 2015 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	$	21,780	$	(1,577	)	$	12,212	$	(1,171	)	$	33,992	$	(2,748	)
Due in one year through five years		1,023,437		(23,255	)		347,203		(21,582	)		1,370,640		(44,837	)
Due in five years through ten years		394,978		(31,423	)		99,335		(10,131	)		494,313		(41,554	)
Due after ten years		35,708		(2,046	)		8,936		(970	)		44,644		(3,016	)
Asset-backed securities		102,506		(791	)		28,048		(272	)		130,554		(1,063	)
Mortgage-backed securities		346,768		(3,605	)		150,095		(3,509	)		496,863		(7,114	)
Total fixed maturity securities	$	1,925,177	$	(62,697	)	$	645,829	$	(37,635	)	$	2,571,006	$	(100,332	)

The aggregate market value and gross unrealized losses related to investments in an unrealized loss position at December 31, 2015 were $2,571,006 thousand and $100,332 thousand, respectively.  The market value of securities for the single issuer whose securities comprised the largest unrealized loss position at December 31, 2015, did not exceed 0.07% 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 $62,697 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, agency residential mortgage-backed securities and

foreign government securities.  The majority of these unrealized losses are attributable to unrealized losses in the energy sector, $35,978 thousand, as falling oil prices disrupted the market values for this sector, particularly for oil exploration, production and servicing companies and unrealized foreign exchange losses, $6,090 thousand, as the U.S. dollar has strengthened against other currencies. The $37,635 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 and agency residential mortgage-backed securities. The majority of these unrealized losses are attributable to unrealized foreign exchange losses, $14,807 thousand, as the U.S. dollar has strengthened against other currencies and unrealized losses in the energy sector, $6,959 thousand, as falling oil prices disrupted the market values for this sector, particularly for oil exploration, production and servicing companies. The Company did not have any sub-prime or alt-A loans with gross unrealized depreciation at December 31, 2015.  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, as of September 30, 2016, and December 31, 2015, were comprised of preferred shares held in Everest Preferred International Holdings ("Preferred Holdings"), an affiliated company.

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Dollars in thousands)	2016			2015			2016			2015
Fixed maturities	$	44,810		$	46,414		$	134,931		$	140,829
Equity securities		7,870			8,004			25,752			26,638
Short-term investments and cash		296			220			851			705
Other invested assets
Limited partnerships		6,020			3,021			17,698			17,676
Dividends from Parent's shares		-			9,234			-			27,702
Dividends from preferred shares of affiliate		7,758			-			23,274			-
Other		522			(242	)		339			1,366
Gross investment income before adjustments		67,276			66,651			202,845			214,916
Funds held interest income (expense)		1,090			940			4,718			4,326
Interest income from Parent		1,075			1,075			3,225			3,225
Gross investment income		69,441			68,666			210,788			222,467
Investment expenses		(4,871	)		(5,303	)		(13,901	)		(15,598	)
Net investment income	$	64,570		$	63,363		$	196,887		$	206,869
(Some amounts may not reconcile due to rounding.)

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 $279,126 thousand in limited partnerships at September 30, 2016.  These commitments will be funded when called in accordance with the partnership agreements, which have investment periods that expire, unless extended, through 2020.

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Dollars in thousands)	2016			2015			2016			2015
Fixed maturity securities, market value:
Other-than-temporary impairments	$	(836	)	$	(10,502	)	$	(25,242	)	$	(43,433	)
Gains (losses) from sales		4,338			(6,636	)		(10,273	)		(30,362	)
Fixed maturity securities, fair value:
Gains (losses) from sales		(1	)		(17	)		(1,855	)		25
Gains (losses) from fair value adjustments		42			-			1,381			56
Equity securities, market value:
Gains (losses) from sales		-			-			-			1
Equity securities, fair value:
Gains (losses) from sales		5,452			(13,656	)		(10,134	)		(14,010	)
Gains (losses) from fair value adjustments		16,063			(101,322	)		34,725			(85,710	)
Other invested assets, fair value:
Gains (losses) from fair value adjustments		(47,090	)		(84,272	)		(47,846	)		29,549
Gain (loss) on sale of subsidiary		(28,032	)		94,704			(28,032	)		94,704
Short-term investment gains (losses)		1			6			1			6
Total net realized capital gains (losses)	$	(50,063	)	$	(121,695	)	$	(87,275	)	$	(49,174	)

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						Nine Months Ended
	September 30,						September 30,
(Dollars in thousands)	2016			2015			2016			2015
Proceeds from sales of fixed maturity securities	$	136,767		$	130,284		$	435,242		$	420,108
Gross gains from sales		6,257			1,401			13,875			9,039
Gross losses from sales		(1,920	)		(8,054	)		(26,003	)		(39,376	)
Proceeds from sales of equity securities	$	109,914		$	138,799		$	531,894		$	442,292
Gross gains from sales		6,874			5,241			13,509			17,655
Gross losses from sales		(1,422	)		(18,896	)		(23,643	)		(31,664	)

XML

Fair Value

9 Months Ended

Sep. 30, 2016

Fair Value [Abstract]

Fair Value

4.  FAIR VALUE

GAAP guidance regarding fair value measurements address how companies should measure fair value when they are required to use fair value measures for recognition or disclosure purposes under GAAP and provides a common definition of fair value to be used throughout GAAP.  It defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly fashion between market participants at the measurement date.  In addition, it establishes a three-level valuation hierarchy for the disclosure of fair value measurements.  The valuation hierarchy is based on the transparency of inputs to the valuation of an asset or liability.  The level in the hierarchy within which a given fair value measurement falls is determined based on the lowest level input that is significant to the measurement, with Level 1 being the highest priority and Level 3 being the lowest priority.

The levels in the hierarchy are defined as follows:

Level 1: Inputs to the valuation methodology are observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in an active market;

Level 2: Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument;

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

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.  Due to the unavailability of prices for twenty eight private placement securities, the Company valued the twenty eight securities at $59,289 thousand at September 30, 2016.  Due to the unavailability of prices for two private placement securities, the Company valued the two securities at $3,593 thousand at December 31, 2015.

The Company internally manages a small public equity portfolio which had a fair value at September 30, 2016 and December 31, 2015 of $135,958 thousand and $131,219 thousand, respectively, and all prices were obtained from publically published sources.

Equity securities denominated in U.S. currency with quoted prices in active markets for identical assets are categorized as level 1 since the quoted prices are directly observable.  Equity securities traded on foreign exchanges are categorized as level 2 due to the added input of a foreign exchange conversion rate to determine fair or market value.  The Company uses foreign currency exchange rates published by nationally recognized sources.

All categories of fixed maturity securities listed in the tables below are generally categorized as level 2, 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.  For foreign government securities and foreign corporate securities, the fair values provided by the third party pricing services in local currencies, and where applicable, are converted to U.S. dollars using currency exchange rates from nationally recognized sources.

The fixed maturities with fair values categorized as level 3 result when prices are not available from the nationally recognized pricing services.  The asset managers will then obtain non-binding price quotes for the securities from brokers. 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.  If the broker quotes are for foreign denominated securities, the quotes are converted to U.S. dollars using currency exchange rates from nationally recognized sources. In limited circumstances when broker prices are not available for private placements, the Company will value the securities using comparable market information.

The composition and valuation inputs for the presented fixed maturities categories are as follows:

· U.S. Treasury securities and obligations of U.S. government agencies and corporations are primarily comprised of U.S. Treasury bonds and the fair value is based on observable market inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields;

· Obligations of U.S. states and political subdivisions are comprised of state and municipal bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads;

· Corporate securities are primarily comprised of U.S. corporate and public utility bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads;

· Asset-backed and mortgage-backed securities fair values are based on observable inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields and cash flow models using observable inputs such as prepayment speeds, collateral performance and default spreads;

· Foreign government securities are comprised of global non-U.S. sovereign bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source;

· Foreign corporate securities are comprised of global non-U.S. corporate bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source.

Other invested assets, at fair value, was categorized as Level 3 at September 30, 2016 and December 31, 2015, since it represented a privately placed convertible preferred stock issued by an affiliate.  The stock was received in exchange for shares of the Company's parent, which were valued on a public securities exchange on December 21, 2015.  The fair value of the preferred stock at September 30, 2016 was determined using a pricing model and at December 31, 2015 represented the original exchange 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)	September 30, 2016		(Level 1)		(Level 2)		(Level 3)
Assets:
Fixed maturities, market value
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	429,168	$	-	$	429,168	$	-
Obligations of U.S. States and political subdivisions		765,004		-		765,004		-
Corporate securities		2,238,637		-		2,182,342		56,295
Asset-backed securities		169,025		-		169,025		-
Mortgage-backed securities
Commercial		77,497		-		74,018		3,479
Agency residential		757,447		-		757,447		-
Non-agency residential		103		-		103		-
Foreign government securities		553,921		-		553,921		-
Foreign corporate securities		1,024,139		-		1,021,145		2,994
Total fixed maturities, market value		6,014,941		-		5,952,173		62,768
Fixed maturities, fair value		3,982		-		3,982		-
Equity securities, fair value		961,115		895,406		65,709		-
Other invested assets, fair value		1,725,367		-		-		1,725,367

There were no transfers between Level 1 and Level 2 for the nine months ended September 30, 2016.

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, 2015		(Level 1)		(Level 2)		(Level 3)
Assets:
Fixed maturities, market value
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	330,985	$	-	$	330,985	$	-
Obligations of U.S. States and political subdivisions		703,075		-		703,075		-
Corporate securities		1,968,558		-		1,964,625		3,933
Asset-backed securities		144,982		-		144,982		-
Mortgage-backed securities
Commercial		62,446		-		62,446		-
Agency residential		712,298		-		712,298		-
Non-agency residential		150		-		150		-
Foreign government securities		463,074		-		463,074		-
Foreign corporate securities		970,909		-		969,316		1,593
Total fixed maturities, market value		5,356,477		-		5,350,951		5,526
Fixed maturities, fair value		2,102		-		2,102		-
Equity securities, fair value		1,215,377		1,153,310		62,067		-
Other invested assets, fair value		1,773,214		-		-		1,773,214

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

	Three Months Ended September 30, 2016												Nine Months Ended September 30, 2016
	Corporate						Foreign						Corporate						Foreign
(Dollars in thousands)	Securities			CMBS			Corporate			Total			Securities			CMBS			Corporate			Total
Beginning balance	$	32,410		$	-		$	2,021		$	34,431		$	3,933		$	-		$	1,593		$	5,526
Total gains or (losses) (realized/unrealized)
Included in earnings		(12	)		-			27			15			(22	)		-			(970	)		(992	)
Included in other comprehensive income (loss)		(48	)		(34	)		(1,285	)		(1,367	)		(81	)		(34	)		140			25
Purchases, issuances and settlements		25,877			(40	)		2,231			28,068			54,397			(40	)		2,231			56,588
Transfers in and/or (out) of Level 3		(1,932	)		3,553			-			1,621			(1,932	)		3,553			-			1,621
Ending balance	$	56,295		$	3,479		$	2,994		$	62,768		$	56,295		$	3,479		$	2,994		$	62,768
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	$	-		$	-		$	-		$	-		$	-		$	-		$	(997	)	$	(997	)
(Some amounts may not reconcile due to rounding.)

	Three Months Ended September 30, 2015									Nine Months Ended September 30, 2015
	Corporate			Foreign						Corporate						Foreign
(Dollars in thousands)	Securities			Corporate			Total			Securities			CMBS			Corporate			Total
Beginning balance	$	1,958		$	7,837		$	9,795		$	-		$	8,597		$	7,166		$	15,763
Total gains or (losses) (realized/unrealized)
Included in earnings		(6	)		62			56			(2	)		-			177			175
Included in other comprehensive income (loss)		(93	)		(1,287	)		(1,380	)		(95	)		-			(1,216	)		(1,311	)
Purchases, issuances and settlements		1,723			-			1,723			3,651			-			-			3,651
Transfers in and/or (out) of Level 3		1,693			(487	)		1,206			1,721			(8,597	)		(2	)		(6,878	)
Ending balance	$	5,275		$	6,125		$	11,400		$	5,275		$	-		$	6,125		$	11,400
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.)

The net transfers to/(from) level 3, fair value measurements using significant unobservable inputs were $1,621 thousand and ($6,878) thousand of investments for the nine months ended September 30, 2016 and 2015, respectively.  The $1,621 thousand relates to the net impact of securities no longer priced by a recognized pricing service.  The ($6,878) thousand primarily related to securities that were priced using single non-binding broker quotes as of December 31, 2014.  The securities were subsequently priced using a recognized pricing service as of September 30, 2015, and were classified as level 2 as of that date.

The following table presents the activity under Level 3, fair value measurements using significant unobservable inputs by other invested assets, for the periods indicated:

	Three months ended					Nine months ended
	September 30,					September 30,
(Dollars in thousands)	2016			2015		2016			2015
Other invested assets, fair value:
Beginning balance	$	1,772,458		$	-	$	1,773,214		$	-
Total gains or (losses) (realized/unrealized)
Included in earnings		(47,090	)		-		(47,846	)		-
Included in other comprehensive income (loss)		-			-		-			-
Purchases, issuances and settlements		-			-		-			-
Transfers in and/or (out) of Level 3		-			-		-			-
Ending balance	$	1,725,367		$	-	$	1,725,367		$	-
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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Contingencies

9 Months Ended

Sep. 30, 2016

Contingencies [Abstract]

Contingencies

5.  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.

The Company has entered into separate annuity agreements with The Prudential Insurance of America ("The Prudential") and an additional unaffiliated life insurance company in which the Company has either purchased annuity contracts or become the assignee of annuity proceeds that are meant to settle claim payment obligations in the future. In both instances, the Company would become contingently liable if either

The Prudential or the unaffiliated life insurance company were unable to make payments related to the respective annuity contact.

The table below presents the estimated cost to replace all such annuities for which the Company was contingently liable for the periods indicated:

	At September 30,		At December 31,
(Dollars in thousands)	2016		2015
The Prudential	$	140,826	$	142,427
Unaffiliated life insurance company		33,195		33,062

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Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2016

Other Comprehensive Income (Loss) [Abstract]

Other Comprehensive Income (Loss)

6.  OTHER COMPREHENSIVE INCOME (LOSS)

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

	Three Months Ended September 30, 2016									Nine Months Ended September 30, 2016
(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	$	8,305		$	(2,909	)	$	5,396		$	92,221	$	(32,279	)	$	59,942
URA(D) on securities - OTTI		(2,444	)		856			(1,588	)		4,199		(1,469	)		2,730
Reclassification of net realized losses (gains) included in net income (loss)		(4,258	)		1,491			(2,767	)		35,515		(12,430	)		23,085
Foreign currency translation adjustments		(4,066	)		1,424			(2,642	)		42,741		(14,962	)		27,779
Benefit plan actuarial net gain (loss)		-			-			-			-		-			-
Reclassification of amortization of net gain (loss) included in net income (loss)		1,951			(683	)		1,268			6,076		(2,127	)		3,949
Total other comprehensive income (loss)	$	(512	)	$	179		$	(333	)	$	180,752	$	(63,267	)	$	117,485
(Some amounts may not reconcile due to rounding)

	Three Months Ended September 30, 2015									Nine Months Ended September 30, 2015
(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	$	(45,240	)	$	15,347		$	(29,893	)	$	(84,958	)	$	28,749		$	(56,209	)
URA(D) on securities - OTTI		22			(7	)		15			9,757			(3,414	)		6,343
Reclassification of net realized losses (gains) included in net income (loss)		17,137			(5,512	)		11,625			73,793			(24,842	)		48,951
Foreign currency translation adjustments		(42,266	)		14,793			(27,473	)		(68,670	)		24,034			(44,636	)
Benefit plan actuarial net gain (loss)		-			-			-			-			-			-
Reclassification of amortization of net gain (loss) included in net income (loss)		2,393			(837	)		1,556			7,336			(2,567	)		4,769
Total other comprehensive income (loss)	$	(67,954	)	$	23,784		$	(44,170	)	$	(62,742	)	$	21,960		$	(40,782	)
(Some amounts may not reconcile due to rounding)

The following table presents details of the amounts reclassified from AOCI for the periods indicated:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,						Affected line item within the statements of
AOCI component	2016			2015			2016			2015			operations and comprehensive income (loss)
(Dollars in thousands)
URA(D) on securities	$	(4,258	)	$	17,137		$	35,515		$	73,793		Other net realized capital gains (losses)
		1,491			(5,512	)		(12,430	)		(24,842	)	Income tax expense (benefit)
	$	(2,767	)	$	11,625		$	23,085		$	48,951		Net income (loss)
Benefit plan net gain (loss)	$	1,951		$	2,393		$	6,076		$	7,336		Other underwriting expenses
		(683	)		(837	)		(2,127	)		(2,567	)	Income tax expense (benefit)
	$	1,268		$	1,556		$	3,949		$	4,769		Net income (loss)
(Some amounts may not reconcile due to rounding)

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

	Nine Months Ended			Twelve Months Ended
	September 30,			December 31,
(Dollars in thousands)	2016			2015
Beginning balance of URA (D) on securities	$	13,654		$	37,628
Current period change in URA (D) of investments - temporary		83,027			(30,257	)
Current period change in URA (D) of investments - non-credit OTTI		2,730			6,283
Ending balance of URA (D) on securities		99,411			13,654
Beginning balance of foreign currency translation adjustments		(12,701	)		41,877
Current period change in foreign currency translation adjustments		27,779			(54,578	)
Ending balance of foreign currency translation adjustments		15,078			(12,701	)
Beginning balance of benefit plan net gain (loss)		(63,089	)		(74,986	)
Current period change in benefit plan net gain (loss)		3,949			11,897
Ending balance of benefit plan net gain (loss)		(59,140	)		(63,089	)
Ending balance of accumulated other comprehensive income (loss)	$	55,349		$	(62,136	)

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Reinsurance And Trust Agreements

9 Months Ended

Sep. 30, 2016

Reinsurance And Trust Agreements [Abstract]

Reinsurance And Trust Agreements

7.  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 September 30, 2016, the total amount on deposit in the trust account was $349,867 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.

On November 18, 2014, the Company entered into a collateralized reinsurance agreement with Kilimanjaro Re to provide the Company with catastrophe reinsurance coverage.  This agreement is a multi-year reinsurance contract which covers specified earthquake events.  The agreement provides up to $500,000 thousand of reinsurance coverage from earthquakes in the United States, Puerto Rico and Canada.

On December 1, 2015 the Company entered into two collateralized reinsurance agreements with Kilimanjaro Re to provide the Company with catastrophe reinsurance coverage.  These agreements are multi-year reinsurance contracts which cover named storm and earthquake events.  The first agreement provides up to $300,000 thousand of reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico and Canada.  The second agreement provides up to $325,000 thousand of reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico and Canada.

Kilimanjaro has financed the various property catastrophe reinsurance coverage by issuing catastrophe bonds to unrelated, external investors. On April 24, 2014, Kilimanjaro issued $450,000 thousand of notes ("Series 2014-1 Notes").  On November 18, 2014, Kilimanjaro issued $500,000 thousand of notes ("Series 2014-2 Notes"). On December 1, 2015, Kilimanjaro issued $625,000 thousand of notes ("Series 2015-1 Notes).  The proceeds from the issuance of the Series 2014-1 Notes, the Series 2014-2 Notes and the Series 2015-1 Notes are held in reinsurance trust throughout the duration of the applicable reinsurance agreements and invested solely in US government money market funds with a rating of at least "AAAm" by Standard & Poor's.

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Senior Notes

9 Months Ended

Sep. 30, 2016

Senior Notes [Abstract]

Senior Notes

8.  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.

September 30, 2016

December 31, 2015

Consolidated Balance

Consolidated Balance

(Dollars in thousands)

Date Issued

Date Due

Principal Amounts

Sheet Amount

Market Value

Sheet Amount

Market Value

4.868% Senior notes

06/05/2014

06/01/2044

400,000

$

396,684

$

423,660

$

396,594

$

381,204

On June 5, 2014, Holdings issued $400,000 thousand of 30 year senior notes at 4.868%, which will mature on June 1, 2044. 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				Nine Months Ended
	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Interest expense incurred	$	4,868	$	4,868	$	14,604	$	14,604

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Long Term Subordinated Notes

9 Months Ended

Sep. 30, 2016

Long Term Subordinated Notes [Abstract]

Long Term Subordinated Notes

9.  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

September 30, 2016

December 31, 2015

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

$

236,438

$

197,706

$

236,364

$

208,978

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.  Effective upon the maturity of the Company's 5.40% senior notes on October 15, 2014, the Company's 4.868% senior notes, due on June 1, 2044, have become the Company's long term indebtedness that ranks senior to the long term 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				Nine Months Ended
	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Interest expense incurred	$	3,937	$	3,937	$	11,811	$	11,811

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Segment Reporting

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Reporting

10.  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:

	Three Months Ended				Nine Months Ended
U.S. Reinsurance	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Gross written premiums	$	654,770	$	601,570	$	1,597,006	$	1,615,276
Net written premiums		327,242		247,352		711,700		672,753
Premiums earned	$	249,203	$	235,275	$	709,064	$	726,113
Incurred losses and LAE		137,245		109,137		363,567		337,065
Commission and brokerage		48,107		48,881		147,968		141,948
Other underwriting expenses		14,265		13,718		39,856		37,054
Underwriting gain (loss)	$	49,586	$	63,539	$	157,673	$	210,046

	Three Months Ended					Nine Months Ended
International	September 30,					September 30,
(Dollars in thousands)	2016		2015			2016		2015
Gross written premiums	$	353,195	$	374,138		$	939,851	$	1,019,406
Net written premiums		141,295		147,991			353,449		417,071
Premiums earned	$	128,358	$	135,130		$	372,816	$	433,751
Incurred losses and LAE		41,830		128,454			206,672		339,926
Commission and brokerage		30,193		27,936			82,443		93,178
Other underwriting expenses		9,219		9,128			25,011		25,292
Underwriting gain (loss)	$	47,116	$	(30,388	)	$	58,690	$	(24,645	)

	Three Months Ended					Nine Months Ended
Insurance	September 30,					September 30,
(Dollars in thousands)	2016		2015			2016			2015
Gross written premiums	$	497,958	$	473,003		$	1,276,761		$	1,130,233
Net written premiums		154,079		203,730			462,791			490,140
Premiums earned	$	179,092	$	175,645		$	445,553		$	428,672
Incurred losses and LAE		122,528		133,163			365,962			325,522
Commission and brokerage		7,263		(4,666	)		(3,900	)		6,509
Other underwriting expenses		40,665		34,107			116,839			94,723
Underwriting gain (loss)	$	8,636	$	13,041		$	(33,348	)	$	1,918

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						Nine Months Ended
	September 30,						September 30,
(Dollars in thousands)	2016			2015			2016			2015
Underwriting gain (loss)	$	105,338		$	46,192		$	183,015		$	187,319
Net investment income		64,570			63,363			196,887			206,869
Net realized capital gains (losses)		(50,063	)		(121,695	)		(87,275	)		(49,174	)
Corporate expense		(1,835	)		(1,637	)		(6,181	)		(5,031	)
Interest, fee and bond issue cost amortization expense		(8,859	)		(8,859	)		(26,576	)		(26,576	)
Other income (expense)		(13,208	)		10,828			(10,806	)		38,950
Income (loss) before taxes	$	95,943		$	(11,808	)	$	249,064		$	352,357

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				Nine Months Ended
	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Canada gross written premiums	$	35,856	$	31,903	$	94,072	$	85,575

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

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Related-Party Transactions

9 Months Ended

Sep. 30, 2016

Related-Party Transactions [Abstract]

Related-Party Transactions

11.  RELATED-PARTY TRANSACTIONS

Parent

Group entered into a $250,000 thousand long term promissory note agreement with Holdings as of December 31, 2014.  The note will mature on December 31, 2023 and has an interest rate of 1.72% that will be paid annually, on December 15^th of each year. This transaction is presented as a Note Receivable - Affiliated in the Consolidated Balance Sheets of Holdings.  Interest income in the amount of $3,225 thousand and $3,225 thousand was recorded by Holdings for the nine months ended September 30, 2016, and September 30, 2015, respectively.

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
11/19/2014	5,000,000
	30,000,000

Through December, 2015, Holdings had purchased and held 9,719,971 Common Shares of Group, which were purchased in the open market between February 2007 and March 2011.

In December, 2015, Holdings transferred the 9,719,971 Common Shares of Group, which it held as other invested assets, at fair value, valued at $1,773,214 thousand, to Preferred Holdings, an affiliated entity and subsidiary of Group, in exchange for 1,773.214 preferred shares of Preferred Holdings with a $1,000 thousand par value and 1.75% annual dividend rate.  After the exchange, Holdings no longer holds any shares or has any ownership interest in Group.

Holdings reported both its Parent Shares and preferred shares in Preferred Holdings, 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 the preferred shares of preferred Holdings and on the Parent 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				Nine Months Ended
	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Dividends received on Parent shares	$	-	$	9,234	$	-	$	27,702
Dividends received on preferred stock of affiliate		7,758		-		23,274		-

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				Nine Months Ended
	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Expenses incurred	$	21,242	$	20,359	$	62,701	$	58,555

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
01/01/2012-12/31/2014	Everest Re		50.0	%	Bermuda Re	property / casualty business		100,000			200,000
01/01/2015	Everest Re		50.0	%	Bermuda Re	property / casualty business		162,500			325,000
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.

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

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

On July 13, 2015, the Company sold Mt. McKinley to Clearwater Insurance Company, a Delaware domiciled insurance company. As of that date, Mt. McKinley is no longer deemed an affiliated company or related party.

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 and Lloyd's syndicate 2786 for the periods indicated:

	Three Months Ended				Nine Months Ended
Bermuda Re	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Ceded written premiums	$	685,798	$	646,001	$	1,746,976	$	1,713,502
Ceded earned premiums		585,993		591,656		1,718,295		1,708,807
Ceded losses and LAE (a)		344,789		343,660		1,039,932		984,371

	Three Months Ended						Nine Months Ended
Everest International	September 30,						September 30,
(Dollars in thousands)	2016			2015			2016		2015
Ceded written premiums	$	(5	)	$	168		$	26	$	313
Ceded earned premiums		(3	)		208			36		441
Ceded losses and LAE		479			(724	)		1,377		156

	Three Months Ended				Nine Months Ended
Everest Canada	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Assumed written premiums	$	12,667	$	11,046	$	39,094	$	29,533
Assumed earned premiums		11,611		9,174		34,740		26,498
Assumed losses and LAE		13,287		4,041		34,714		15,062

	Three Months Ended				Nine Months Ended
Lloyd's Syndicate 2786	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Assumed written premiums	$	351	$	-	$	890	$	-
Assumed earned premiums		173		-		289		-
Assumed losses and LAE		-		-		-		-

(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, amortization of deferred gain on retroactive reinsurance is reflected in other income on the consolidated statements of operations and comprehensive income (loss). Upon the sale of Mt. McKinley, the value of the remaining deferred gain on retroactive reinsurance was included in the calculation of the realized gain on sale of subsidiary.

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.

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 segregated accounts and assumed by the Company from Mt. Logan Re segregated accounts.

	Three Months Ended				Nine Months Ended
Mt. Logan Re Segregated Accounts	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Ceded written premiums	$	57,911	$	68,078	$	128,292	$	162,640
Ceded earned premiums		44,548		55,234		118,776		141,668
Ceded losses and LAE		7,420		17,071		32,750		38,542
Assumed written premiums		5,032		4,230		11,666		11,626
Assumed earned premiums		5,032		4,230		11,666		11,626
Assumed losses and LAE		-		-		-		-

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Retirement Benefits

9 Months Ended

Sep. 30, 2016

Retirement Benefits [Abstract]

Retirement Benefits

12.RETIREMENT BENEFITS

The Company maintains both qualified and non-qualified defined benefit pension plans and a retiree health plan for its U.S. employees employed prior to April 1, 2010.

Net periodic benefit cost for U.S. employees included the following components for the periods indicated:

Pension Benefits	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Dollars in thousands)	2016			2015			2016			2015
Service cost	$	2,731		$	3,203		$	8,524		$	9,398
Interest cost		2,371			2,758			7,093			7,926
Expected return on plan assets		(2,789	)		(2,904	)		(7,757	)		(8,710	)
Amortization of prior service cost		-			4			-			15
Amortization of net (income) loss		1,984			2,312			6,012			6,824
Net periodic benefit cost	$	4,297		$	5,373		$	13,872		$	15,453

Other Benefits	Three Months Ended					Nine Months Ended
	September 30,					September 30,
(Dollars in thousands)	2016			2015		2016			2015
Service cost	$	354		$	498	$	1,230		$	1,498
Interest cost		252			329		844			987
Amortization of prior service costs		(33	)		-		(33	)		-
Amortization of net (income) loss		-			76		96			497
Net periodic benefit cost	$	573		$	903	$	2,137		$	2,982

The Company contributed $30,000 thousand to the qualified pension benefit plan for the three and nine months ended September 30, 2016.  The Company did not make any contributions to the qualified pension benefit plan for the three and nine months ended September 30, 2015.

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Income Taxes

9 Months Ended

Sep. 30, 2016

Income Taxes [Abstract]

Income Taxes

13.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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Disposition

9 Months Ended

Sep. 30, 2016

Disposition [Abstract]

Disposition

14.  DISPOSITION

The Company sold Heartland, its crop Managing General Agent to CGB for $49,000 thousand.  The sale agreement includes a provision for a long term strategic reinsurance relationship with CGB.  The Company has recognized an after-tax loss on the sale of Heartland of $12,942 thousand.  Under the terms of the reinsurance arrangement, there will not be a material fluctuation in the level of crop business, although it will be reflected as reinsurance rather than insurance.

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Subsequent Events

9 Months Ended

Sep. 30, 2016

Subsequent Events [Abstract]

Subsequent Events

15.  SUBSEQUENT EVENTS

The Company has evaluated known recognized and non-recognized subsequent events.  During the early part of October, Hurricane Matthew impacted the Caribbean and the southeastern United States.  Based upon current early overall industry loss projections of $3 billion to $9 billion and applying the Company's estimated market share, the Company's best estimated range of loss from this event is $25,000 thousand to $75,000 thousand.  The Company does not have any other subsequent events to report.

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Investments (Tables)

9 Months Ended

Sep. 30, 2016

Investments [Abstract]

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

At September 30, 2016
	Amortized		Unrealized		Unrealized			Market		OTTI in AOCI
(Dollars in thousands)	Cost		Appreciation		Depreciation			Value		(a)
Fixed maturity securities
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	423,167	$	6,471	$	(470	)	$	429,168	$	-
Obligations of U.S. states and political subdivisions		725,149		40,657		(802	)		765,004		-
Corporate securities		2,192,089		57,124		(10,576	)		2,238,637		3,802
Asset-backed securities		167,721		1,316		(12	)		169,025		-
Mortgage-backed securities
Commercial		75,965		1,567		(35	)		77,497		-
Agency residential		750,339		7,983		(875	)		757,447		-
Non-agency residential		89		14		-			103		-
Foreign government securities		530,381		29,667		(6,127	)		553,921		-
Foreign corporate securities		997,100		34,616		(7,577	)		1,024,139		327
Total fixed maturity securities	$	5,862,000	$	179,415	$	(26,474	)	$	6,014,941	$	4,129
Equity securities	$	-	$	-	$	-		$	-	$	-

	At December 31, 2015
	Amortized		Unrealized		Unrealized			Market		OTTI in AOCI
(Dollars in thousands)	Cost		Appreciation		Depreciation			Value		(a)
Fixed maturity securities
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	329,281	$	2,422	$	(718	)	$	330,985	$	-
Obligations of U.S. states and political subdivisions		669,945		34,020		(890	)		703,075		-
Corporate securities		2,011,997		27,286		(70,725	)		1,968,558		(86	)
Asset-backed securities		145,755		290		(1,063	)		144,982		-
Mortgage-backed securities
Commercial		61,527		1,430		(511	)		62,446		-
Agency residential		714,907		3,994		(6,603	)		712,298		-
Non-agency residential		126		24		-			150		-
Foreign government securities		447,244		24,255		(8,425	)		463,074		-
Foreign corporate securities		954,690		27,616		(11,397	)		970,909		17
Total fixed maturity securities	$	5,335,472	$	121,337	$	(100,332	)	$	5,356,477	$	(69	)

^(a)  Represents the amount of OTTI recognized in AOCI.  Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date.

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

	At September 30, 2016				At December 31, 2015
	Amortized		Market		Amortized		Market
(Dollars in thousands)	Cost		Value		Cost		Value
Fixed maturity securities - available for sale
Due in one year or less	$	350,845	$	349,366	$	330,029	$	330,509
Due after one year through five years		2,916,564		2,967,946		2,617,079		2,618,056
Due after five years through ten years		803,666		833,389		870,266		856,230
Due after ten years		796,811		860,168		595,783		631,806
Asset-backed securities		167,721		169,025		145,755		144,982
Mortgage-backed securities
Commercial		75,965		77,497		61,527		62,446
Agency residential		750,339		757,447		714,907		712,298
Non-agency residential		89		103		126		150
Total fixed maturity securities	$	5,862,000	$	6,014,941	$	5,335,472	$	5,356,477

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

	Three Months Eded						Nine Months Eded
	September 30,						September 30,
(Dollars in thousands)	2016			2015			2016			2015
Increase (decrease) during the period between the market value and cost
of investments carried at market value, and deferred taxes thereon:
Fixed maturity securities	$	4,047		$	(28,103	)	$	127,736		$	(11,164	)
Fixed maturity securities, other-than-temporary impairment		(2,444	)		22			4,199			9,757
Equity Securities		-			-			-			(1	)
Change in unrealized  appreciation (depreciation), pre-tax		1,603			(28,081	)		131,935			(1,408	)
Deferred tax benefit (expense)		(1,418	)		9,835			(44,709	)		3,907
Deferred tax benefit (expense), other-than-temporary impairment		856			(7	)		(1,469	)		(3,414	)
Change in unrealized appreciation (depreciation),
net of deferred taxes, included in stockholder's equity	$	1,041		$	(18,253	)	$	85,757		$	(915	)

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

Duration of Unrealized Loss at September 30, 2016 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	$	42,928	$	(470	)	$	-	$	-		$	42,928	$	(470	)
Obligations of U.S. states and political subdivisions		72,100		(391	)		633		(411	)		72,733		(802	)
Corporate securities		185,486		(2,571	)		185,850		(8,005	)		371,336		(10,576	)
Asset-backed securities		-		-			17,850		(12	)		17,850		(12	)
Mortgage-backed securities
Commercial		1,511		(3	)		3,282		(32	)		4,793		(35	)
Agency residential		48,246		(106	)		99,400		(769	)		147,646		(875	)
Non-agency residential		-		-			-		-			-		-
Foreign government securities		14,728		(261	)		61,698		(5,866	)		76,426		(6,127	)
Foreign corporate securities		83,716		(2,070	)		69,922		(5,507	)		153,638		(7,577	)
Total fixed maturity securities	$	448,715	$	(5,872	)	$	438,635	$	(20,602	)	$	887,350	$	(26,474	)
Equity securities		-		-			-		-			-		-
Total	$	448,715	$	(5,872	)	$	438,635	$	(20,602	)	$	887,350	$	(26,474	)

Duration of Unrealized Loss at December 31, 2015 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	$	216,352	$	(712	)	$	692	$	(6	)	$	217,044	$	(718	)
Obligations of U.S. states and political subdivisions		6,434		(84	)		4,917		(806	)		11,351		(890	)
Corporate securities		866,715		(49,034	)		307,215		(21,691	)		1,173,930		(70,725	)
Asset-backed securities		102,506		(791	)		28,048		(272	)		130,554		(1,063	)
Mortgage-backed securities
Commercial		26,483		(511	)		-		-			26,483		(511	)
Agency residential		320,285		(3,094	)		150,095		(3,509	)		470,380		(6,603	)
Non-agency residential		-		-			-		-			-		-
Foreign government securities		61,498		(2,182	)		77,911		(6,243	)		139,409		(8,425	)
Foreign corporate securities		324,904		(6,289	)		76,951		(5,108	)		401,855		(11,397	)
Total fixed maturity securities	$	1,925,177	$	(62,697	)	$	645,829	$	(37,635	)	$	2,571,006	$	(100,332	)

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

Duration of Unrealized Loss at September 30, 2016 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	$	14,922	$	(259	)	$	23,232	$	(3,449	)	$	38,154	$	(3,708	)
Due in one year through five years		185,270		(3,363	)		246,906		(13,503	)		432,176		(16,866	)
Due in five years through ten years		119,725		(1,682	)		46,244		(2,792	)		165,969		(4,474	)
Due after ten years		79,041		(459	)		1,721		(45	)		80,762		(504	)
Asset-backed securities		-		-			17,850		(12	)		17,850		(12	)
Mortgage-backed securities		49,757		(109	)		102,682		(801	)		152,439		(910	)
Total fixed maturity securities	$	448,715	$	(5,872	)	$	438,635	$	(20,602	)	$	887,350	$	(26,474	)

Duration of Unrealized Loss at December 31, 2015 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	$	21,780	$	(1,577	)	$	12,212	$	(1,171	)	$	33,992	$	(2,748	)
Due in one year through five years		1,023,437		(23,255	)		347,203		(21,582	)		1,370,640		(44,837	)
Due in five years through ten years		394,978		(31,423	)		99,335		(10,131	)		494,313		(41,554	)
Due after ten years		35,708		(2,046	)		8,936		(970	)		44,644		(3,016	)
Asset-backed securities		102,506		(791	)		28,048		(272	)		130,554		(1,063	)
Mortgage-backed securities		346,768		(3,605	)		150,095		(3,509	)		496,863		(7,114	)
Total fixed maturity securities	$	1,925,177	$	(62,697	)	$	645,829	$	(37,635	)	$	2,571,006	$	(100,332	)

Summary Of Components Of Net Investment Income

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Dollars in thousands)	2016			2015			2016			2015
Fixed maturities	$	44,810		$	46,414		$	134,931		$	140,829
Equity securities		7,870			8,004			25,752			26,638
Short-term investments and cash		296			220			851			705
Other invested assets
Limited partnerships		6,020			3,021			17,698			17,676
Dividends from Parent's shares		-			9,234			-			27,702
Dividends from preferred shares of affiliate		7,758			-			23,274			-
Other		522			(242	)		339			1,366
Gross investment income before adjustments		67,276			66,651			202,845			214,916
Funds held interest income (expense)		1,090			940			4,718			4,326
Interest income from Parent		1,075			1,075			3,225			3,225
Gross investment income		69,441			68,666			210,788			222,467
Investment expenses		(4,871	)		(5,303	)		(13,901	)		(15,598	)
Net investment income	$	64,570		$	63,363		$	196,887		$	206,869
(Some amounts may not reconcile due to rounding.)

Summary Of Components Of Net Realized Capital Gains (Losses)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Dollars in thousands)	2016			2015			2016			2015
Fixed maturity securities, market value:
Other-than-temporary impairments	$	(836	)	$	(10,502	)	$	(25,242	)	$	(43,433	)
Gains (losses) from sales		4,338			(6,636	)		(10,273	)		(30,362	)
Fixed maturity securities, fair value:
Gains (losses) from sales		(1	)		(17	)		(1,855	)		25
Gains (losses) from fair value adjustments		42			-			1,381			56
Equity securities, market value:
Gains (losses) from sales		-			-			-			1
Equity securities, fair value:
Gains (losses) from sales		5,452			(13,656	)		(10,134	)		(14,010	)
Gains (losses) from fair value adjustments		16,063			(101,322	)		34,725			(85,710	)
Other invested assets, fair value:
Gains (losses) from fair value adjustments		(47,090	)		(84,272	)		(47,846	)		29,549
Gain (loss) on sale of subsidiary		(28,032	)		94,704			(28,032	)		94,704
Short-term investment gains (losses)		1			6			1			6
Total net realized capital gains (losses)	$	(50,063	)	$	(121,695	)	$	(87,275	)	$	(49,174	)

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Dollars in thousands)	2016			2015			2016			2015
Proceeds from sales of fixed maturity securities	$	136,767		$	130,284		$	435,242		$	420,108
Gross gains from sales		6,257			1,401			13,875			9,039
Gross losses from sales		(1,920	)		(8,054	)		(26,003	)		(39,376	)
Proceeds from sales of equity securities	$	109,914		$	138,799		$	531,894		$	442,292
Gross gains from sales		6,874			5,241			13,509			17,655
Gross losses from sales		(1,422	)		(18,896	)		(23,643	)		(31,664	)

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Fair Value (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value [Abstract]

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

Fair Value Measurement Using:
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
(Dollars in thousands)	September 30, 2016		(Level 1)		(Level 2)		(Level 3)
Assets:
Fixed maturities, market value
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	429,168	$	-	$	429,168	$	-
Obligations of U.S. States and political subdivisions		765,004		-		765,004		-
Corporate securities		2,238,637		-		2,182,342		56,295
Asset-backed securities		169,025		-		169,025		-
Mortgage-backed securities
Commercial		77,497		-		74,018		3,479
Agency residential		757,447		-		757,447		-
Non-agency residential		103		-		103		-
Foreign government securities		553,921		-		553,921		-
Foreign corporate securities		1,024,139		-		1,021,145		2,994
Total fixed maturities, market value		6,014,941		-		5,952,173		62,768
Fixed maturities, fair value		3,982		-		3,982		-
Equity securities, fair value		961,115		895,406		65,709		-
Other invested assets, fair value		1,725,367		-		-		1,725,367

Fair Value Measurement Using:
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
(Dollars in thousands)	December 31, 2015		(Level 1)		(Level 2)		(Level 3)
Assets:
Fixed maturities, market value
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	330,985	$	-	$	330,985	$	-
Obligations of U.S. States and political subdivisions		703,075		-		703,075		-
Corporate securities		1,968,558		-		1,964,625		3,933
Asset-backed securities		144,982		-		144,982		-
Mortgage-backed securities
Commercial		62,446		-		62,446		-
Agency residential		712,298		-		712,298		-
Non-agency residential		150		-		150		-
Foreign government securities		463,074		-		463,074		-
Foreign corporate securities		970,909		-		969,316		1,593
Total fixed maturities, market value		5,356,477		-		5,350,951		5,526
Fixed maturities, fair value		2,102		-		2,102		-
Equity securities, fair value		1,215,377		1,153,310		62,067		-
Other invested assets, fair value		1,773,214		-		-		1,773,214

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

Three Months Ended September 30, 2016												Nine Months Ended September 30, 2016
	Corporate						Foreign						Corporate						Foreign
(Dollars in thousands)	Securities			CMBS			Corporate			Total			Securities			CMBS			Corporate			Total
Beginning balance	$	32,410		$	-		$	2,021		$	34,431		$	3,933		$	-		$	1,593		$	5,526
Total gains or (losses) (realized/unrealized)
Included in earnings		(12	)		-			27			15			(22	)		-			(970	)		(992	)
Included in other comprehensive income (loss)		(48	)		(34	)		(1,285	)		(1,367	)		(81	)		(34	)		140			25
Purchases, issuances and settlements		25,877			(40	)		2,231			28,068			54,397			(40	)		2,231			56,588
Transfers in and/or (out) of Level 3		(1,932	)		3,553			-			1,621			(1,932	)		3,553			-			1,621
Ending balance	$	56,295		$	3,479		$	2,994		$	62,768		$	56,295		$	3,479		$	2,994		$	62,768
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	$	-		$	-		$	-		$	-		$	-		$	-		$	(997	)	$	(997	)
(Some amounts may not reconcile due to rounding.)

	Three Months Ended September 30, 2015									Nine Months Ended September 30, 2015
	Corporate			Foreign						Corporate						Foreign
(Dollars in thousands)	Securities			Corporate			Total			Securities			CMBS			Corporate			Total
Beginning balance	$	1,958		$	7,837		$	9,795		$	-		$	8,597		$	7,166		$	15,763
Total gains or (losses) (realized/unrealized)
Included in earnings		(6	)		62			56			(2	)		-			177			175
Included in other comprehensive income (loss)		(93	)		(1,287	)		(1,380	)		(95	)		-			(1,216	)		(1,311	)
Purchases, issuances and settlements		1,723			-			1,723			3,651			-			-			3,651
Transfers in and/or (out) of Level 3		1,693			(487	)		1,206			1,721			(8,597	)		(2	)		(6,878	)
Ending balance	$	5,275		$	6,125		$	11,400		$	5,275		$	-		$	6,125		$	11,400
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.)

Fair Value Measurements Using Significant Unobservable Inputs for Equity Index Put Option Contracts

	Three months ended					Nine months ended
	September 30,					September 30,
(Dollars in thousands)	2016			2015		2016			2015
Other invested assets, fair value:
Beginning balance	$	1,772,458		$	-	$	1,773,214		$	-
Total gains or (losses) (realized/unrealized)
Included in earnings		(47,090	)		-		(47,846	)		-
Included in other comprehensive income (loss)		-			-		-			-
Purchases, issuances and settlements		-			-		-			-
Transfers in and/or (out) of Level 3		-			-		-			-
Ending balance	$	1,725,367		$	-	$	1,725,367		$	-
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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Contingencies (Tables)

9 Months Ended

Sep. 30, 2016

Contingencies [Abstract]

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

	At September 30,		At December 31,
(Dollars in thousands)	2016		2015
The Prudential	$	140,826	$	142,427
Unaffiliated life insurance company		33,195		33,062

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Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2016

Other Comprehensive Income (Loss) [Abstract]

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

Three Months Ended September 30, 2016									Nine Months Ended September 30, 2016
(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	$	8,305		$	(2,909	)	$	5,396		$	92,221	$	(32,279	)	$	59,942
URA(D) on securities - OTTI		(2,444	)		856			(1,588	)		4,199		(1,469	)		2,730
Reclassification of net realized losses (gains) included in net income (loss)		(4,258	)		1,491			(2,767	)		35,515		(12,430	)		23,085
Foreign currency translation adjustments		(4,066	)		1,424			(2,642	)		42,741		(14,962	)		27,779
Benefit plan actuarial net gain (loss)		-			-			-			-		-			-
Reclassification of amortization of net gain (loss) included in net income (loss)		1,951			(683	)		1,268			6,076		(2,127	)		3,949
Total other comprehensive income (loss)	$	(512	)	$	179		$	(333	)	$	180,752	$	(63,267	)	$	117,485
(Some amounts may not reconcile due to rounding)

	Three Months Ended September 30, 2015									Nine Months Ended September 30, 2015
(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	$	(45,240	)	$	15,347		$	(29,893	)	$	(84,958	)	$	28,749		$	(56,209	)
URA(D) on securities - OTTI		22			(7	)		15			9,757			(3,414	)		6,343
Reclassification of net realized losses (gains) included in net income (loss)		17,137			(5,512	)		11,625			73,793			(24,842	)		48,951
Foreign currency translation adjustments		(42,266	)		14,793			(27,473	)		(68,670	)		24,034			(44,636	)
Benefit plan actuarial net gain (loss)		-			-			-			-			-			-
Reclassification of amortization of net gain (loss) included in net income (loss)		2,393			(837	)		1,556			7,336			(2,567	)		4,769
Total other comprehensive income (loss)	$	(67,954	)	$	23,784		$	(44,170	)	$	(62,742	)	$	21,960		$	(40,782	)
(Some amounts may not reconcile due to rounding)

Reclassification From Accumulated Other Comprehensive Income

	Three Months Ended						Nine Months Ended
	September 30,						September 30,						Affected line item within the statements of
AOCI component	2016			2015			2016			2015			operations and comprehensive income (loss)
(Dollars in thousands)
URA(D) on securities	$	(4,258	)	$	17,137		$	35,515		$	73,793		Other net realized capital gains (losses)
		1,491			(5,512	)		(12,430	)		(24,842	)	Income tax expense (benefit)
	$	(2,767	)	$	11,625		$	23,085		$	48,951		Net income (loss)
Benefit plan net gain (loss)	$	1,951		$	2,393		$	6,076		$	7,336		Other underwriting expenses
		(683	)		(837	)		(2,127	)		(2,567	)	Income tax expense (benefit)
	$	1,268		$	1,556		$	3,949		$	4,769		Net income (loss)
(Some amounts may not reconcile due to rounding)

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

	Nine Months Ended			Twelve Months Ended
	September 30,			December 31,
(Dollars in thousands)	2016			2015
Beginning balance of URA (D) on securities	$	13,654		$	37,628
Current period change in URA (D) of investments - temporary		83,027			(30,257	)
Current period change in URA (D) of investments - non-credit OTTI		2,730			6,283
Ending balance of URA (D) on securities		99,411			13,654
Beginning balance of foreign currency translation adjustments		(12,701	)		41,877
Current period change in foreign currency translation adjustments		27,779			(54,578	)
Ending balance of foreign currency translation adjustments		15,078			(12,701	)
Beginning balance of benefit plan net gain (loss)		(63,089	)		(74,986	)
Current period change in benefit plan net gain (loss)		3,949			11,897
Ending balance of benefit plan net gain (loss)		(59,140	)		(63,089	)
Ending balance of accumulated other comprehensive income (loss)	$	55,349		$	(62,136	)

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Senior Notes (Tables)

9 Months Ended

Sep. 30, 2016

Senior Notes [Abstract]

Schedule Of Outstanding Senior Notes

September 30, 2016

December 31, 2015

Consolidated Balance

Consolidated Balance

(Dollars in thousands)

Date Issued

Date Due

Principal Amounts

Sheet Amount

Market Value

Sheet Amount

Market Value

4.868% Senior notes

06/05/2014

06/01/2044

400,000

$

396,684

$

423,660

$

396,594

$

381,204

Schedule Of Interest Expense Incurred In Connection With Senior Notes

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Interest expense incurred	$	4,868	$	4,868	$	14,604	$	14,604

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Long Term Subordinated Notes (Tables)

9 Months Ended

Sep. 30, 2016

Long Term Subordinated Notes [Abstract]

Schedule Of Outstanding Fixed To Floating Rate Long Term Subordinated Notes

Maturity Date

September 30, 2016

December 31, 2015

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

$

236,438

$

197,706

$

236,364

$

208,978

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Interest expense incurred	$	3,937	$	3,937	$	11,811	$	11,811

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Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Schedule Of Underwriting Results For Operating Segments

	Three Months Ended				Nine Months Ended
U.S. Reinsurance	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Gross written premiums	$	654,770	$	601,570	$	1,597,006	$	1,615,276
Net written premiums		327,242		247,352		711,700		672,753
Premiums earned	$	249,203	$	235,275	$	709,064	$	726,113
Incurred losses and LAE		137,245		109,137		363,567		337,065
Commission and brokerage		48,107		48,881		147,968		141,948
Other underwriting expenses		14,265		13,718		39,856		37,054
Underwriting gain (loss)	$	49,586	$	63,539	$	157,673	$	210,046

	Three Months Ended					Nine Months Ended
International	September 30,					September 30,
(Dollars in thousands)	2016		2015			2016		2015
Gross written premiums	$	353,195	$	374,138		$	939,851	$	1,019,406
Net written premiums		141,295		147,991			353,449		417,071
Premiums earned	$	128,358	$	135,130		$	372,816	$	433,751
Incurred losses and LAE		41,830		128,454			206,672		339,926
Commission and brokerage		30,193		27,936			82,443		93,178
Other underwriting expenses		9,219		9,128			25,011		25,292
Underwriting gain (loss)	$	47,116	$	(30,388	)	$	58,690	$	(24,645	)

	Three Months Ended					Nine Months Ended
Insurance	September 30,					September 30,
(Dollars in thousands)	2016		2015			2016			2015
Gross written premiums	$	497,958	$	473,003		$	1,276,761		$	1,130,233
Net written premiums		154,079		203,730			462,791			490,140
Premiums earned	$	179,092	$	175,645		$	445,553		$	428,672
Incurred losses and LAE		122,528		133,163			365,962			325,522
Commission and brokerage		7,263		(4,666	)		(3,900	)		6,509
Other underwriting expenses		40,665		34,107			116,839			94,723
Underwriting gain (loss)	$	8,636	$	13,041		$	(33,348	)	$	1,918

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Dollars in thousands)	2016			2015			2016			2015
Underwriting gain (loss)	$	105,338		$	46,192		$	183,015		$	187,319
Net investment income		64,570			63,363			196,887			206,869
Net realized capital gains (losses)		(50,063	)		(121,695	)		(87,275	)		(49,174	)
Corporate expense		(1,835	)		(1,637	)		(6,181	)		(5,031	)
Interest, fee and bond issue cost amortization expense		(8,859	)		(8,859	)		(26,576	)		(26,576	)
Other income (expense)		(13,208	)		10,828			(10,806	)		38,950
Income (loss) before taxes	$	95,943		$	(11,808	)	$	249,064		$	352,357

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Canada gross written premiums	$	35,856	$	31,903	$	94,072	$	85,575

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Related-Party Transactions (Tables)

9 Months Ended

Sep. 30, 2016

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
11/19/2014	5,000,000
	30,000,000

Dividends Received On Common Shares Reported As Net Investment Income

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Dividends received on Parent shares	$	-	$	9,234	$	-	$	27,702
Dividends received on preferred stock of affiliate		7,758		-		23,274		-

Expenses Incurred By Holdings From Services Provided By Affiliated Company

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Expenses incurred	$	21,242	$	20,359	$	62,701	$	58,555

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
01/01/2012-12/31/2014	Everest Re		50.0	%	Bermuda Re	property / casualty business		100,000			200,000
01/01/2015	Everest Re		50.0	%	Bermuda Re	property / casualty business		162,500			325,000
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.

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

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					Nine Months Ended
Bermuda Re	September 30,					September 30,
(Dollars in thousands)	2016		2015			2016		2015
Ceded written premiums	$	685,798	$	646,001		$	1,746,976	$	1,713,502
Ceded earned premiums		585,993		591,656			1,718,295		1,708,807
Ceded losses and LAE (a)		344,789		343,660			1,039,932		984,371

	Three Months Ended						Nine Months Ended
Everest International	September 30,						September 30,
(Dollars in thousands)	2016			2015			2016		2015
Ceded written premiums	$	(5	)	$	168		$	26	$	313
Ceded earned premiums		(3	)		208			36		441
Ceded losses and LAE		479			(724	)		1,377		156

	Three Months Ended				Nine Months Ended
Everest Canada	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Assumed written premiums	$	12,667	$	11,046	$	39,094	$	29,533
Assumed earned premiums		11,611		9,174		34,740		26,498
Assumed losses and LAE		13,287		4,041		34,714		15,062

	Three Months Ended				Nine Months Ended
Lloyd's Syndicate 2786	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Assumed written premiums	$	351	$	-	$	890	$	-
Assumed earned premiums		173		-		289		-
Assumed losses and LAE		-		-		-		-

(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, amortization of deferred gain on retroactive reinsurance is reflected in other income on the consolidated statements of operations and comprehensive income (loss). Upon the sale of Mt. McKinley, the value of the remaining deferred gain on retroactive reinsurance was included in the calculation of the realized gain on sale of subsidiary.

	Three Months Ended				Nine Months Ended
Mt. Logan Re Segregated Accounts	September 30,				September 30,
(Dollars in thousands)	2016		2015		2016		2015
Ceded written premiums	$	57,911	$	68,078	$	128,292	$	162,640
Ceded earned premiums		44,548		55,234		118,776		141,668
Ceded losses and LAE		7,420		17,071		32,750		38,542
Assumed written premiums		5,032		4,230		11,666		11,626
Assumed earned premiums		5,032		4,230		11,666		11,626
Assumed losses and LAE		-		-		-		-

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Retirement Benefits (Tables)

9 Months Ended

Sep. 30, 2016

Retirement Benefits [Abstract]

Summary Of Pension Expense

Pension Benefits	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Dollars in thousands)	2016			2015			2016			2015
Service cost	$	2,731		$	3,203		$	8,524		$	9,398
Interest cost		2,371			2,758			7,093			7,926
Expected return on plan assets		(2,789	)		(2,904	)		(7,757	)		(8,710	)
Amortization of prior service cost		-			4			-			15
Amortization of net (income) loss		1,984			2,312			6,012			6,824
Net periodic benefit cost	$	4,297		$	5,373		$	13,872		$	15,453

Other Benefits	Three Months Ended					Nine Months Ended
	September 30,					September 30,
(Dollars in thousands)	2016			2015		2016			2015
Service cost	$	354		$	498	$	1,230		$	1,498
Interest cost		252			329		844			987
Amortization of prior service costs		(33	)		-		(33	)		-
Amortization of net (income) loss		-			76		96			497
Net periodic benefit cost	$	573		$	903	$	2,137		$	2,982

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Investments (Narrative) (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
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	$ 887,350		$ 2,571,006
Gross unrealized losses on investments in unrealized loss position	26,474		$ 100,332
Fixed maturity securities, duration of unrealized loss, less than 12 months, gross unrealized depreciation	5,872
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation	$ 20,602
Sales Revenue, Net [Member]
Schedule of Available-for-sale Securities [Line Items]
Percentage threshold of unrealized losses not exceeded by any one single issuer	5.00%	5.00%	0.07%
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
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Aggregate market value of investments in unrealized loss position	$ 887,350		$ 2,571,006
Gross unrealized losses on investments in unrealized loss position	26,474		100,332
Fixed maturity securities, duration of unrealized loss, less than 12 months, gross unrealized depreciation	5,872		62,697
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation	$ 20,602		37,635
Fixed Maturity Securities [Member] | Sales Revenue, Net [Member]
Schedule of Available-for-sale Securities [Line Items]
Percentage threshold of unrealized losses not exceeded by any one single issuer	0.90%
Energy Sector [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, duration of unrealized loss, less than 12 months, gross unrealized depreciation			35,978
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation			6,959
Foreign Exchange Losses [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, duration of unrealized loss, less than 12 months, gross unrealized depreciation	$ 5,564		6,090
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation	19,030		$ 14,807
Limited Partnerships [Member]
Schedule of Available-for-sale Securities [Line Items]
Additional contractual commitments	$ 279,126

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Investments (Summary Of Unrealized Appreciation (Depreciation) Of Available For Sale, Fixed Maturity And Equity Security Investments) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 5,862,000	$ 5,335,472
Unrealized Appreciation	179,415	121,337
Unrealized Depreciation	(26,474)	(100,332)
Market Value	6,014,941	5,356,477
OTTI in AOCI	4,129	(69)
U.S. Treasury Securities And Obligations Of U.S. Government Agencies And Corporations [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	423,167	329,281
Unrealized Appreciation	6,471	2,422
Unrealized Depreciation	(470)	(718)
Market Value	429,168	330,985
Obligations of U.S. States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	725,149	669,945
Unrealized Appreciation	40,657	34,020
Unrealized Depreciation	(802)	(890)
Market Value	765,004	703,075
Corporate Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,192,089	2,011,997
Unrealized Appreciation	57,124	27,286
Unrealized Depreciation	(10,576)	(70,725)
Market Value	2,238,637	1,968,558
OTTI in AOCI	3,802	(86)
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	167,721	145,755
Unrealized Appreciation	1,316	290
Unrealized Depreciation	(12)	(1,063)
Market Value	169,025	144,982
Commercial Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	75,965	61,527
Unrealized Appreciation	1,567	1,430
Unrealized Depreciation	(35)	(511)
Market Value	77,497	62,446
Agency Residential [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	750,339	714,907
Unrealized Appreciation	7,983	3,994
Unrealized Depreciation	(875)	(6,603)
Market Value	757,447	712,298
Non-agency Residential [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	89	126
Unrealized Appreciation	14	24
Market Value	103	150
Foreign Government Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	530,381	447,244
Unrealized Appreciation	29,667	24,255
Unrealized Depreciation	(6,127)	(8,425)
Market Value	553,921	463,074
Foreign Corporate Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	997,100	954,690
Unrealized Appreciation	34,616	27,616
Unrealized Depreciation	(7,577)	(11,397)
Market Value	1,024,139	970,909
OTTI in AOCI	$ 327	$ 17

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Investments (Summary Of Amortized Cost And Market Value Of Fixed Maturity Securities, By Contractual Maturity) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities - available for sale, Amortized Cost	$ 5,862,000	$ 5,335,472
Fixed maturity securities - available for sale, at market value	6,014,941	5,356,477
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	350,845	330,029
Fixed maturity securities - available for sale, Due after one year through five years, Amortized Cost	2,916,564	2,617,079
Fixed maturity securities - available for sale, Due after five years through ten years, Amortized Cost	803,666	870,266
Fixed maturity securities - available for sale, Due after ten years, Amortized Cost	796,811	595,783
Fixed maturity securities - available for sale, Due in one year or less, Market Value	349,366	330,509
Fixed maturity securities - available for sale, Due after one year through five years, Market Value	2,967,946	2,618,056
Fixed maturity securities - available for sale, Due after five years through ten years, Market Value	833,389	856,230
Fixed maturity securities - available for sale, Due after ten years, Market Value	860,168	631,806
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities - available for sale, Amortized Cost	167,721	145,755
Fixed maturity securities - available for sale, at market value	169,025	144,982
Commercial Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities - available for sale, Amortized Cost	75,965	61,527
Fixed maturity securities - available for sale, at market value	77,497	62,446
Agency Residential [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities - available for sale, Amortized Cost	750,339	714,907
Fixed maturity securities - available for sale, at market value	757,447	712,298
Non-agency Residential [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities - available for sale, Amortized Cost	89	126
Fixed maturity securities - available for sale, at market value	$ 103	$ 150

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Investments (Summary Of Changes In Net Unrealized Appreciation (Depreciation) For The Company's Investments) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Schedule of Available-for-sale Securities [Line Items]
Change in unrealized appreciation (depreciation), pre-tax	$ 1,603	$ (28,081)	$ 131,935	$ (1,408)
Deferred tax benefit (expense)	(1,418)	9,835	(44,709)	3,907
Deferred tax benefit (expense), other-than-temporary impairment	856	(7)	(1,469)	(3,414)
Total URA(D) on securities arising during the period	1,041	(18,253)	85,757	(915)
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Change in unrealized appreciation (depreciation), pre-tax	4,047	(28,103)	127,736	(11,164)
Fixed Maturity Securities, Other-Than-Temporary Impairment [Member]
Schedule of Available-for-sale Securities [Line Items]
Change in unrealized appreciation (depreciation), pre-tax	$ (2,444)	$ 22	$ 4,199	9,757
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Change in unrealized appreciation (depreciation), pre-tax				$ (1)

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Investments (Summary Of Aggregate Market Value And Gross Unrealized Depreciation Of Fixed Maturity And Equity Securities, By Security Type) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	$ 448,715
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(5,872)
Available for sale securities, Greater than 12 months, Market Value	438,635
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(20,602)
Available-for-sale Securities, Market Value, Total	887,350	$ 2,571,006
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(26,474)	(100,332)
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	448,715	1,925,177
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(5,872)	(62,697)
Available for sale securities, Greater than 12 months, Market Value	438,635	645,829
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(20,602)	(37,635)
Available-for-sale Securities, Market Value, Total	887,350	2,571,006
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(26,474)	(100,332)
U.S. Treasury Securities And Obligations Of U.S. Government Agencies And Corporations [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	42,928	216,352
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(470)	(712)
Available for sale securities, Greater than 12 months, Market Value		692
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation		(6)
Available-for-sale Securities, Market Value, Total	42,928	217,044
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(470)	(718)
Obligations of U.S. States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	72,100	6,434
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(391)	(84)
Available for sale securities, Greater than 12 months, Market Value	633	4,917
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(411)	(806)
Available-for-sale Securities, Market Value, Total	72,733	11,351
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(802)	(890)
Corporate Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	185,486	866,715
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(2,571)	(49,034)
Available for sale securities, Greater than 12 months, Market Value	185,850	307,215
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(8,005)	(21,691)
Available-for-sale Securities, Market Value, Total	371,336	1,173,930
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(10,576)	(70,725)
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value		102,506
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation		(791)
Available for sale securities, Greater than 12 months, Market Value	17,850	28,048
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(12)	(272)
Available-for-sale Securities, Market Value, Total	17,850	130,554
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(12)	(1,063)
Commercial Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	1,511	26,483
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(3)	(511)
Available for sale securities, Greater than 12 months, Market Value	3,282
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(32)
Available-for-sale Securities, Market Value, Total	4,793	26,483
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(35)	(511)
Agency Residential [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	48,246	320,285
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(106)	(3,094)
Available for sale securities, Greater than 12 months, Market Value	99,400	150,095
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(769)	(3,509)
Available-for-sale Securities, Market Value, Total	147,646	470,380
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(875)	(6,603)
Foreign Government Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	14,728	61,498
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(261)	(2,182)
Available for sale securities, Greater than 12 months, Market Value	61,698	77,911
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(5,866)	(6,243)
Available-for-sale Securities, Market Value, Total	76,426	139,409
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(6,127)	(8,425)
Foreign Corporate Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	83,716	324,904
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(2,070)	(6,289)
Available for sale securities, Greater than 12 months, Market Value	69,922	76,951
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(5,507)	(5,108)
Available-for-sale Securities, Market Value, Total	153,638	401,855
Available-for-sale Securities, Gross Unrealized Depreciation, Total	$ (7,577)	$ (11,397)

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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	Sep. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	$ 448,715
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(5,872)
Available for sale securities, Greater than 12 months, Market Value	438,635
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(20,602)
Available-for-sale Securities, Market Value, Total	887,350	$ 2,571,006
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(26,474)	(100,332)
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	448,715	1,925,177
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(5,872)	(62,697)
Available for sale securities, Greater than 12 months, Market Value	438,635	645,829
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(20,602)	(37,635)
Available-for-sale Securities, Market Value, Total	887,350	2,571,006
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(26,474)	(100,332)
Due In One Year Or Less [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	14,922	21,780
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(259)	(1,577)
Available for sale securities, Greater than 12 months, Market Value	23,232	12,212
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(3,449)	(1,171)
Available-for-sale Securities, Market Value, Total	38,154	33,992
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(3,708)	(2,748)
Due In One Year Through Five Years [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	185,270	1,023,437
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(3,363)	(23,255)
Available for sale securities, Greater than 12 months, Market Value	246,906	347,203
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(13,503)	(21,582)
Available-for-sale Securities, Market Value, Total	432,176	1,370,640
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(16,866)	(44,837)
Due In Five Years Through Ten Years [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	119,725	394,978
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(1,682)	(31,423)
Available for sale securities, Greater than 12 months, Market Value	46,244	99,335
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(2,792)	(10,131)
Available-for-sale Securities, Market Value, Total	165,969	494,313
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(4,474)	(41,554)
Due After Ten Years [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	79,041	35,708
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(459)	(2,046)
Available for sale securities, Greater than 12 months, Market Value	1,721	8,936
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(45)	(970)
Available-for-sale Securities, Market Value, Total	80,762	44,644
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(504)	(3,016)
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value		102,506
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation		(791)
Available for sale securities, Greater than 12 months, Market Value	17,850	28,048
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(12)	(272)
Available-for-sale Securities, Market Value, Total	17,850	130,554
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(12)	(1,063)
Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	49,757	346,768
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(109)	(3,605)
Available for sale securities, Greater than 12 months, Market Value	102,682	150,095
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(801)	(3,509)
Available-for-sale Securities, Market Value, Total	152,439	496,863
Available-for-sale Securities, Gross Unrealized Depreciation, Total	$ (910)	$ (7,114)

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Investments (Summary Of Components Of Net Investment Income) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustment	$ 67,276	$ 66,651	$ 202,845	$ 214,916
Funds held interest income (expense)	1,090	940	4,718	4,326
Interest income from Parent	1,075	1,075	3,225	3,225
Gross investment income	69,441	68,666	210,788	222,467
Investment expenses	(4,871)	(5,303)	(13,901)	(15,598)
Net investment income	64,570	63,363	196,887	206,869
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustment	44,810	46,414	134,931	140,829
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustment	7,870	8,004	25,752	26,638
Short-Term Investments And Cash [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustment	296	220	851	705
Limited Partnerships [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustment	6,020	3,021	17,698	17,676
Dividends From Parent's Shares [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustment		9,234		27,702
Dividends From Preferred Shares Of Affiliate [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustment	7,758		23,274
Other [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustment	$ 522	$ (242)	$ 339	$ 1,366

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Investments (Summary Of Components Of Net Realized Capital Gains (Losses)) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Schedule of Available-for-sale Securities [Line Items]
Other-than-temporary impairments	$ (836)	$ (10,502)	$ (25,242)	$ (43,433)
Gain (loss) on sale of subsidiary	(28,032)	94,704	(28,032)	94,704
Total net realized capital gains (losses)	(50,063)	(121,695)	(87,275)	(49,174)
Fixed Maturity Securities [Member] | Market Value [Member]
Schedule of Available-for-sale Securities [Line Items]
Other-than-temporary impairments	(836)	(10,502)	(25,242)	(43,433)
Gains (losses) from sales	4,338	(6,636)	(10,273)	(30,362)
Fixed Maturity Securities [Member] | Fair Value [Member]
Schedule of Available-for-sale Securities [Line Items]
Gains (losses) from sales	(1)	(17)	(1,855)	25
Gains (losses) from fair value adjustments	42		1,381	56
Equity Securities [Member] | Market Value [Member]
Schedule of Available-for-sale Securities [Line Items]
Gains (losses) from sales				1
Equity Securities [Member] | Fair Value [Member]
Schedule of Available-for-sale Securities [Line Items]
Gains (losses) from sales	5,452	(13,656)	(10,134)	(14,010)
Gains (losses) from fair value adjustments	16,063	(101,322)	34,725	(85,710)
Other Invested Assets [Member] | Fair Value [Member]
Schedule of Available-for-sale Securities [Line Items]
Gains (losses) from fair value adjustments	(47,090)	(84,272)	(47,846)	29,549
Gain (loss) on sale of subsidiary	(28,032)	94,704	(28,032)	94,704
Short-Term Investments And Cash [Member]
Schedule of Available-for-sale Securities [Line Items]
Gain (loss) on sale of subsidiary	$ 1	$ 6	$ 1	$ 6

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Investments (Summary Of Gross Gains (Losses) From Sales Of Fixed Maturity And Equity Securities) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Proceeds from sales of securities	$ 136,767	$ 130,284	$ 435,242	$ 420,108
Gross gains from sales	6,257	1,401	13,875	9,039
Gross losses from sales	(1,920)	(8,054)	(26,003)	(39,376)
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Proceeds from sales of securities	109,914	138,799	531,894	442,292
Gross gains from sales	6,874	5,241	13,509	17,655
Gross losses from sales	$ (1,422)	$ (18,896)	$ (23,643)	$ (31,664)

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Fair Value (Narrative) (Details) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) security	Sep. 30, 2015 USD ($)	Dec. 31, 2015 USD ($) security
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of public equity portfolio	$ 135,958		$ 135,958		$ 131,219
Transfers between Level 1 and Level 2	0		0
Transfers from level 3	1,621	$ 1,206	1,621	$ (6,878)
Available For Sale Securities Debt Securities Market Value	6,014,941		$ 6,014,941		$ 5,356,477
Private Placement [Member] | Unavailability Of Prices [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Number of securities | security			28		2
Available For Sale Securities Debt Securities Market Value	$ 59,289		$ 59,289		$ 3,593

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Fair Value (Fair Value Measurement Levels For All Assets, Recorded At Fair And Market Value)(Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	$ 6,014,941	$ 5,356,477
Fixed maturities - available for sale, at fair value	3,982	2,102
Equity securities - available for sale, at fair value	961,115	1,215,377
Other invested assets, at fair value	1,725,367	1,773,214
Quoted Prices in Active Markets For Identical Assets Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Equity securities - available for sale, at fair value	895,406	1,153,310
Significant Other Observable Inputs Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	5,952,173	5,350,951
Fixed maturities - available for sale, at fair value	3,982	2,102
Equity securities - available for sale, at fair value	65,709	62,067
Significant Unobservable Inputs Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	62,768	5,526
Other invested assets, at fair value	1,725,367	1,773,214
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	429,168	330,985
U.S. Treasury Securities And Obligations Of U.S. Government Agencies And Corporations [Member] | Significant Other Observable Inputs Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	429,168	330,985
Obligations 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	765,004	703,075
Obligations of U.S. States and Political Subdivisions [Member] | Significant Other Observable Inputs Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	765,004	703,075
Corporate Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	2,238,637	1,968,558
Corporate Securities [Member] | Significant Other Observable Inputs Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	2,182,342	1,964,625
Corporate Securities [Member] | Significant Unobservable Inputs Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	56,295	3,933
Asset-backed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	169,025	144,982
Asset-backed Securities [Member] | Significant Other Observable Inputs Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	169,025	144,982
Commercial Mortgage-Backed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	77,497	62,446
Commercial Mortgage-Backed Securities [Member] | Significant Other Observable Inputs Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	74,018	62,446
Commercial Mortgage-Backed Securities [Member] | Significant Unobservable Inputs Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	3,479
Agency Residential [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	757,447	712,298
Agency Residential [Member] | Significant Other Observable Inputs Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	757,447	712,298
Non-agency Residential [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	103	150
Non-agency Residential [Member] | Significant Other Observable Inputs Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	103	150
Foreign Government Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	553,921	463,074
Foreign Government Securities [Member] | Significant Other Observable Inputs Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	553,921	463,074
Foreign Corporate Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	1,024,139	970,909
Foreign Corporate Securities [Member] | Significant Other Observable Inputs Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	1,021,145	969,316
Foreign Corporate Securities [Member] | Significant Unobservable Inputs Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturity securities - available for sale, at market value	$ 2,994	$ 1,593

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Fair Value (Activity Under Level 3, Fair Value Measurements Using Significant Unobservable Inputs By Asset Type) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 34,431	$ 9,795	$ 5,526	$ 15,763
Total gains or (losses) (realized/unrealized), Included in earnings	15	56	(992)	175
Total gains or (losses) (realized/unrealized), Included in other comprehensive income (loss)	(1,367)	(1,380)	25	(1,311)
Purchases, issuances and settlements	28,068	1,723	56,588	3,651
Transfers in and/or (out) of Level 3	1,621	1,206	1,621	(6,878)
Ending balance	62,768	11,400	62,768	11,400
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			(997)
Corporate Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	32,410	1,958	3,933
Total gains or (losses) (realized/unrealized), Included in earnings	(12)	(6)	(22)	(2)
Total gains or (losses) (realized/unrealized), Included in other comprehensive income (loss)	(48)	(93)	(81)	(95)
Purchases, issuances and settlements	25,877	1,723	54,397	3,651
Transfers in and/or (out) of Level 3	(1,932)	1,693	(1,932)	1,721
Ending balance	56,295	5,275	56,295	5,275
Commercial Mortgage-Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance				8,597
Total gains or (losses) (realized/unrealized), Included in earnings
Total gains or (losses) (realized/unrealized), Included in other comprehensive income (loss)	(34)		(34)
Purchases, issuances and settlements	(40)		(40)
Transfers in and/or (out) of Level 3	3,553		3,553	(8,597)
Ending balance	3,479		3,479
Foreign Corporate Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	2,021	7,837	1,593	7,166
Total gains or (losses) (realized/unrealized), Included in earnings	27	62	(970)	177
Total gains or (losses) (realized/unrealized), Included in other comprehensive income (loss)	(1,285)	(1,287)	140	(1,216)
Purchases, issuances and settlements	2,231		2,231
Transfers in and/or (out) of Level 3		(487)		(2)
Ending balance	$ 2,994	$ 6,125	2,994	$ 6,125
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			$ (997)

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Fair Value (Fair Value Measurements Using Significant Unobservable Inputs for Equity Index Put Option Contracts) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Fair Value [Abstract]
Beginning Balance	$ 1,772,458		$ 1,773,214
Total gains or (losses) (realized/unrealized) Included in earnings	(47,090)		(47,846)
Total gains or (losses) (realized/unrealized) Included in other comprehensive income (loss)
Purchases, issuances and settlements
Transfers in and/or (out) of Level 3
Ending Balance	1,725,367		1,725,367
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

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Contingencies (Estimated Cost To Replace All Such Annuities For Which The Company Was Contingently Liable) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
The Prudential [Member]
Loss Contingencies [Line Items]
Estimated cost to replace annuities	$ 140,826	$ 142,427
Unaffiliated Life Insurance Company [Member]
Loss Contingencies [Line Items]
Estimated cost to replace annuities	$ 33,195	$ 33,062

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Other Comprehensive Income (Loss) (Components Of Comprehensive Income (Loss) In The Consolidated Statements Of Operations) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Other Comprehensive Income (Loss) [Abstract]
Unrealized appreciation (depreciation) ("URA(D)") of securities - temporary, Before Tax	$ 8,305	$ (45,240)	$ 92,221	$ (84,958)
URA(D) on securities - OTTI, Before Tax	(2,444)	22	4,199	9,757
Reclassification of net realized losses (gains) included in net income (loss), Before Tax	(4,258)	17,137	35,515	73,793
Foreign currency translation adjustments, Before Tax	(4,066)	(42,266)	42,741	(68,670)
Reclassification of amortization of net gain (loss) included in net income (loss), Before Tax	1,951	2,393	6,076	7,336
Total other comprehensive income (loss), Before Tax	(512)	(67,954)	180,752	(62,742)
Unrealized appreciation (depreciation) ("URA(D)") of securities - temporary, Tax Effect	(2,909)	15,347	(32,279)	28,749
URA(D) on securities - OTTI, Tax Effect	856	(7)	(1,469)	(3,414)
Reclassification of net realized losses (gains) included in net income (loss), Tax Effect	1,491	(5,512)	(12,430)	(24,842)
Foreign currency translation adjustments, Tax Effect	1,424	14,793	(14,962)	24,034
Reclassification of amortization of net gain (loss) included in net income (loss), Tax Effect	(683)	(837)	(2,127)	(2,567)
Total other comprehensive income (loss), Tax Effect	179	23,784	(63,267)	21,960
Unrealized appreciation (depreciation) ("URA(D)") of securities - temporary, Net of Tax	5,396	(29,893)	59,942	(56,209)
URA(D) of securities - OTTI, Net of Tax	(1,588)	15	2,730	6,343
Reclassification of net realized losses (gains) included in net income (loss), Net of Tax	(2,767)	11,625	23,085	48,951
Foreign currency translation adjustments, Net of Tax	(2,642)	(27,473)	27,779	(44,636)
Benefit plan actuarial net gain (loss), Net of Tax
Reclassification of amortization of net gain (loss) included in net income (loss), Net of Tax	1,268	1,556	3,949	4,769
Total other comprehensive income (loss), net of tax	$ (333)	$ (44,170)	$ 117,485	$ (40,782)

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Other Comprehensive Income (Loss) (Reclassification From Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other net realized capital gains (losses)	$ (21,195)	$ (205,897)	$ (34,001)	$ (100,445)
Other underwriting expenses	(64,149)	(56,953)	(181,706)	(157,069)
Income tax expense (benefit)	(21,145)	7,149	(66,990)	(107,306)
NET INCOME (LOSS)	74,798	(4,659)	182,074	245,051
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)	(4,258)	17,137	35,515	73,793
Income tax expense (benefit)	1,491	(5,512)	(12,430)	(24,842)
NET INCOME (LOSS)	(2,767)	11,625	23,085	48,951
Benefit Plan Liability [Member] | Reclassification From Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other underwriting expenses	1,951	2,393	6,076	7,336
Income tax expense (benefit)	(683)	(837)	(2,127)	(2,567)
NET INCOME (LOSS)	$ 1,268	$ 1,556	$ 3,949	$ 4,769

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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	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Other Comprehensive Income (Loss) [Abstract]
Beginning balance of URA (D) on securities			$ 13,654	$ 37,628	$ 37,628
Current period change in URA (D) of investments - temporary			83,027		(30,257)
Current period change in URA (D) of investments - non-credit OTTI			2,730		6,283
Ending balance of URA (D) on securities	$ 99,411		99,411		13,654
Beginning balance of foreign currency translation adjustments			(12,701)	41,877	41,877
Current period change in foreign currency translation adjustments			27,779		(54,578)
Ending balance of foreign currency translation adjustments	15,078		15,078		(12,701)
Beginning balance of benefit plan net gain (loss)			(63,089)	(74,986)	(74,986)
Current period change in benefit plan net gain (loss)	1,268	$ 1,556	3,949	$ 4,769	11,897
Ending balance of benefit plan net gain (loss)	(59,140)		(59,140)		(63,089)
Ending balance of accumulated other comprehensive income (loss)	$ 55,349		$ 55,349		$ (62,136)

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Reinsurance And Trust Agreements (Narrative) (Details) $ in Thousands	Dec. 01, 2015 USD ($) item	Nov. 18, 2014 USD ($)	Apr. 24, 2014 USD ($) item	Sep. 30, 2016 USD ($)
Effects of Reinsurance [Line Items]
Amount on deposit in trust accounts				$ 349,867
Kilimanjaro Re Limited [Member]
Effects of Reinsurance [Line Items]
Number of collateralized reinsurance agreements | item	2		2
Kilimanjaro Re Limited [Member] | Catastrophe Reinsurance [Member]
Effects of Reinsurance [Line Items]
Reinsurance coverage amount		$ 500,000
Catastrophe reinsurance bonds, funded amount	$ 625,000	$ 500,000	$ 450,000
Kilimanjaro Re Limited [Member] | Catastrophe Reinsurance [Member] | Southeastern United States [Member]
Effects of Reinsurance [Line Items]
Reinsurance coverage amount			250,000
Kilimanjaro Re Limited [Member] | Catastrophe Reinsurance [Member] | Southeast, Mid-Atlantic And Northeast United States And Puerto Rico [Member]
Effects of Reinsurance [Line Items]
Reinsurance coverage amount			$ 200,000
Kilimanjaro Re Limited [Member] | Catastrophe Reinsurance Agreement 1 [Member]
Effects of Reinsurance [Line Items]
Reinsurance coverage amount	300,000
Kilimanjaro Re Limited [Member] | Catastrophe Reinsurance Agreement 2 [Member]
Effects of Reinsurance [Line Items]
Reinsurance coverage amount	$ 325,000

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Senior Notes (Narrative) (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Parent Company [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate	1.72%
Maturity date	Dec. 31, 2023
Senior Notes [Member] | Senior Notes 4.868% [Member]
Debt Instrument [Line Items]
Date Issued	Jun. 05, 2014
Principal Amounts	$ 400,000,000
Debt maturity term	30 years
Debt instrument, stated interest rate	4.868%	4.868%
Maturity date	Jun. 01, 2044	Jun. 01, 2044

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Senior Notes (Schedule Of Outstanding Senior Notes) (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Assets Sold under Agreements to Repurchase [Line Items]
Consolidated Balance Sheet Amount	$ 396,684,000	$ 396,594,000
Parent Company [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Debt instrument, stated interest rate	1.72%
Date Due	Dec. 31, 2023
Senior Notes 5.4% [Member] | Senior Notes [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Debt instrument, stated interest rate	5.40%
Date Due	Oct. 15, 2014
Senior Notes 4.868% [Member] | Senior Notes [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Debt instrument, stated interest rate	4.868%	4.868%
Date Issued	Jun. 05, 2014
Date Due	Jun. 01, 2044	Jun. 01, 2044
Principal Amounts	$ 400,000,000
Consolidated Balance Sheet Amount	396,684,000	$ 396,594,000
Market value	$ 423,660,000	$ 381,204,000

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Senior Notes (Schedule Of Interest Expense Incurred In Connection With Senior Notes) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Senior Notes [Abstract]
Interest expense incurred	$ 4,868	$ 4,868	$ 14,604	$ 14,604

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Long Term Subordinated Notes (Narrative) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Percentage of principal amount required for redemption	100.00%
Long Term Subordinated Debt [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate	6.60%	6.60%
Percentage of principal amount required for redemption	100.00%
Outstanding debt reduction	$ 161,441
Debt instrument, maturity date	May 01, 2067	May 01, 2067
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 basis, 3 month LIBOR plus number of basis points, reset quarterly	2.385%
Fixed 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
Floating Rate Interest Period [Member]
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.
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
Senior Notes 5.4% [Member] | Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate	5.40%
Debt instrument, maturity date	Oct. 15, 2014
Senior Notes 4.868% [Member] | Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate	4.868%	4.868%
Debt instrument, maturity date	Jun. 01, 2044	Jun. 01, 2044

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Long Term Subordinated Notes (Schedule Of Outstanding Fixed To Floating Rate Long Term Subordinated Notes) (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Consolidated Balance Sheet Amount	$ 236,438,000	$ 236,364,000
Long Term Subordinated Debt [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate	6.60%	6.60%
Date Issued	Apr. 26, 2007
Original Principal Amount	$ 400,000,000
Maturity date	May 01, 2067	May 01, 2067
Consolidated Balance Sheet Amount	$ 236,438,000	$ 236,364,000
Market value	$ 197,706,000	$ 208,978,000
Long Term Subordinated Debt [Member] | Scheduled [Member]
Debt Instrument [Line Items]
Maturity date	May 15, 2037
Long Term Subordinated Debt [Member] | Final [Member]
Debt Instrument [Line Items]
Maturity date	May 01, 2067

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Long Term Subordinated Notes (Schedule Of Interest Expense Incurred In Connection With Long Term Subordinated Notes) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Long Term Subordinated Notes [Abstract]
Interest expense incurred	$ 3,937	$ 3,937	$ 11,811	$ 11,811

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Segment Reporting (Narrative) (Details) - Sales Revenue, Net [Member]	9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Concentration Risk [Line Items]
Percentage threshold of unrealized losses not exceeded by any one single issuer	5.00%	5.00%	0.07%
Percentage of revenues	5.00%	5.00%	0.07%

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Segment Reporting (Schedule Of Underwriting Results For Operating Segments) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Information [Line Items]
Premiums earned	$ 556,653	$ 546,050	$ 1,527,433	$ 1,588,536
Incurred losses and LAE	301,603	370,754	936,201	1,002,513
Commission and brokerage	85,563	72,151	226,511	241,635
Other underwriting expenses	64,149	56,953	181,706	157,069
Underwriting gain (loss)	105,338	46,192	183,015	187,319
U.S. Reinsurance [Member]
Segment Reporting Information [Line Items]
Gross written premiums	654,770	601,570	1,597,006	1,615,276
Net written premiums	327,242	247,352	711,700	672,753
Premiums earned	249,203	235,275	709,064	726,113
Incurred losses and LAE	137,245	109,137	363,567	337,065
Commission and brokerage	48,107	48,881	147,968	141,948
Other underwriting expenses	14,265	13,718	39,856	37,054
Underwriting gain (loss)	49,586	63,539	157,673	210,046
International [Member]
Segment Reporting Information [Line Items]
Gross written premiums	353,195	374,138	939,851	1,019,406
Net written premiums	141,295	147,991	353,449	417,071
Premiums earned	128,358	135,130	372,816	433,751
Incurred losses and LAE	41,830	128,454	206,672	339,926
Commission and brokerage	30,193	27,936	82,443	93,178
Other underwriting expenses	9,219	9,128	25,011	25,292
Underwriting gain (loss)	47,116	(30,388)	58,690	(24,645)
Insurance [Member]
Segment Reporting Information [Line Items]
Gross written premiums	497,958	473,003	1,276,761	1,130,233
Net written premiums	154,079	203,730	462,791	490,140
Premiums earned	179,092	175,645	445,553	428,672
Incurred losses and LAE	122,528	133,163	365,962	325,522
Commission and brokerage	7,263	(4,666)	(3,900)	6,509
Other underwriting expenses	40,665	34,107	116,839	94,723
Underwriting gain (loss)	$ 8,636	$ 13,041	$ (33,348)	$ 1,918

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Segment Reporting (Schedule Of Underwriting Results For Operating Segments To Income (Loss) Before Taxes) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting [Abstract]
Underwriting gain (loss)	$ 105,338	$ 46,192	$ 183,015	$ 187,319
Net investment income	64,570	63,363	196,887	206,869
Net realized capital gains (losses)	(50,063)	(121,695)	(87,275)	(49,174)
Corporate expense	(1,835)	(1,637)	(6,181)	(5,031)
Interest, fee and bond issue cost amortization expense	(8,859)	(8,859)	(26,576)	(26,576)
Other income (expense)	(13,208)	10,828	(10,806)	38,950
INCOME (LOSS) BEFORE TAXES	$ 95,943	$ (11,808)	$ 249,064	$ 352,357

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Segment Reporting (Schedule Of Gross Written Premium Derived From Largest Non-U.S. Market) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Canada [Member]
Segment Reporting Information [Line Items]
Written premiums : Direct	$ 35,856	$ 31,903	$ 94,072	$ 85,575

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Related-Party Transactions (Narrative) (Details) $ / shares in Units, $ in Thousands, £ in Millions	1 Months Ended	9 Months Ended
	Dec. 31, 2015 USD ($) $ / shares shares	Sep. 30, 2016 GBP (£) shares	Sep. 30, 2016 USD ($) shares	Sep. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)
Related Party Transaction [Line Items]
Note receivable - affiliated	$ 250,000		$ 250,000
Interest income			$ 3,225	$ 3,225
Stock repurchase program, number of shares held | shares	9,719,971	9,719,971	9,719,971
Stock repurchase program, value of shares held	$ 1,773,214
Preferred shares par value | $ / shares	$ 1,000
Annual dividend rate	1.75%
Reserve Indemnity Agreement, Percent		90.00%	90.00%
Reserve Indemnity Agreement, Amount | £		£ 25
Parent Company [Member]
Related Party Transaction [Line Items]
Note receivable - affiliated					$ 250,000
Debt instrument, stated interest rate			1.72%
Maturity date		Dec. 31, 2023	Dec. 31, 2023

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Related-Party Transactions (Amendments To The Share Repurchase Program For The Common Shares Approved For Repurchase) (Details)	Sep. 30, 2016 shares
Equity, Class of Treasury Stock [Line Items]
Common Shares Authorized for Repurchase, amount	30,000,000
Amendment Date, 09/21/2004 [Member]
Equity, Class of Treasury Stock [Line Items]
Common Shares Authorized for Repurchase, amount	5,000,000
Amendment Date, 07/21/2008 [Member]
Equity, Class of Treasury Stock [Line Items]
Common Shares Authorized for Repurchase, amount	5,000,000
Amendment Date, 02/24/2010 [Member]
Equity, Class of Treasury Stock [Line Items]
Common Shares Authorized for Repurchase, amount	5,000,000
Amendment Date, 02/22/2012 [Member]
Equity, Class of Treasury Stock [Line Items]
Common Shares Authorized for Repurchase, amount	5,000,000
Amendment Date, 05/15/2013 [Member]
Equity, Class of Treasury Stock [Line Items]
Common Shares Authorized for Repurchase, amount	5,000,000
Amendment Date, 11/19/2014 [Member]
Equity, Class of Treasury Stock [Line Items]
Common Shares Authorized for Repurchase, amount	5,000,000

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Related-Party Transactions (Dividends Received On Common Shares Reported As Net Investment Income) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Dividends From Parent's Shares [Member]
Related Party Transaction [Line Items]
Dividends received		$ 9,234		$ 27,702
Dividends From Preferred Shares Of Affiliate [Member]
Related Party Transaction [Line Items]
Dividends received	$ 7,758		$ 23,274

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Related-Party Transactions (Expenses Incurred By Holdings From Services Provided By Affiliated Company) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Related-Party Transactions [Abstract]
Expenses incurred	$ 21,242	$ 20,359	$ 62,701	$ 58,555

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Related-Party Transactions (Affiliated Quota Share Reinsurance Agreements For All New And Renewal Business For The Indicated Coverage Period) (Details) - 9 months ended Sep. 30, 2016 CAD in Thousands, $ in Thousands		CAD	USD ($)
Everest Re [Member]
Related Party Transaction [Line Items]
Assuming Company		Bermuda Re	Bermuda Re
Everest Re [Member] | Bermuda Re [Member] | 01/01/2002-12/31/2002 [Member]
Related Party Transaction [Line Items]
Ceding Company		Everest Re	Everest Re
Percent Ceded		20.00%	20.00%
Assuming Company		Bermuda Re	Bermuda Re
Type of Business		property / casualty business	property / casualty business
Everest Re [Member] | Bermuda Re [Member] | 01/01/2003-12/31/2003 [Member]
Related Party Transaction [Line Items]
Ceding Company		Everest Re	Everest Re
Percent Ceded		25.00%	25.00%
Assuming Company		Bermuda Re	Bermuda Re
Type of Business		property / casualty business	property / casualty business
Everest Re [Member] | Bermuda Re [Member] | 01/01/2004-12/31/2005 [Member]
Related Party Transaction [Line Items]
Ceding Company		Everest Re	Everest Re
Percent Ceded		22.50%	22.50%
Assuming Company		Bermuda Re	Bermuda Re
Type of Business		property / casualty business	property / casualty business
Everest Re [Member] | Bermuda Re [Member] | 01/01/2006-12/31/2006 [Member]
Related Party Transaction [Line Items]
Ceding Company		Everest Re	Everest Re
Percent Ceded		18.00%	18.00%
Assuming Company		Bermuda Re	Bermuda Re
Type of Business		property business	property business
Single Occurrence Limit	[1]		$ 125,000
Everest Re [Member] | Bermuda Re [Member] | 01/01/2006-12/31/2007 [Member]
Related Party Transaction [Line Items]
Ceding Company		Everest Re	Everest Re
Percent Ceded		31.50%	31.50%
Assuming Company		Bermuda Re	Bermuda Re
Type of Business		casualty business	casualty business
Everest Re [Member] | Bermuda Re [Member] | 01/01/2007-12/31/2007 [Member]
Related Party Transaction [Line Items]
Ceding Company		Everest Re	Everest Re
Percent Ceded		22.50%	22.50%
Assuming Company		Bermuda Re	Bermuda Re
Type of Business		property business	property business
Single Occurrence Limit	[1]		$ 130,000
Everest Re [Member] | Bermuda Re [Member] | 01/01/2008-12/31/2008 [Member]
Related Party Transaction [Line Items]
Ceding Company		Everest Re	Everest Re
Percent Ceded		36.00%	36.00%
Assuming Company		Bermuda Re	Bermuda Re
Type of Business		property / casualty business	property / casualty business
Single Occurrence Limit	[1]		$ 130,000
Aggregate Limit	[2]		$ 275,000
Everest Re [Member] | Bermuda Re [Member] | 01/01/2009-12/31/2009 [Member]
Related Party Transaction [Line Items]
Ceding Company		Everest Re	Everest Re
Percent Ceded		36.00%	36.00%
Assuming Company		Bermuda Re	Bermuda Re
Type of Business		property / casualty business	property / casualty business
Single Occurrence Limit	[1]		$ 150,000
Aggregate Limit	[2]		$ 325,000
Everest Re [Member] | Bermuda Re [Member] | 01/01/2010-12/31/2010 [Member]
Related Party Transaction [Line Items]
Ceding Company		Everest Re	Everest Re
Percent Ceded		44.00%	44.00%
Assuming Company		Bermuda Re	Bermuda Re
Type of Business		property / casualty business	property / casualty business
Single Occurrence Limit			$ 150,000
Aggregate Limit			$ 325,000
Everest Re [Member] | Bermuda Re [Member] | 01/01/2011 -12/31/2011 [Member]
Related Party Transaction [Line Items]
Ceding Company		Everest Re	Everest Re
Percent Ceded		50.00%	50.00%
Assuming Company		Bermuda Re	Bermuda Re
Type of Business		property / casualty business	property / casualty business
Single Occurrence Limit			$ 150,000
Aggregate Limit			$ 300,000
Everest Re [Member] | Bermuda Re [Member] | 01/01/2012 -12/31/2014 [Member]
Related Party Transaction [Line Items]
Ceding Company		Everest Re	Everest Re
Percent Ceded		50.00%	50.00%
Assuming Company		Bermuda Re	Bermuda Re
Type of Business		property / casualty business	property / casualty business
Single Occurrence Limit			$ 100,000
Aggregate Limit			$ 200,000
Everest Re [Member] | Bermuda Re [Member] | 01/01/2015 [Member]
Related Party Transaction [Line Items]
Ceding Company		Everest Re	Everest Re
Percent Ceded		50.00%	50.00%
Assuming Company		Bermuda Re	Bermuda Re
Type of Business		property / casualty business	property / casualty business
Single Occurrence Limit			$ 162,500
Aggregate Limit			$ 325,000
Everest Re [Member] | Everest International [Member] | 01/01/2004-12/31/2005 [Member]
Related Party Transaction [Line Items]
Ceding Company		Everest Re	Everest Re
Percent Ceded		2.50%	2.50%
Assuming Company		Everest International	Everest International
Type of Business		property / casualty business	property / casualty business
Everest Re [Member] | Everest International [Member] | 01/01/2006-12/31/2006 [Member]
Related Party Transaction [Line Items]
Ceding Company		Everest Re	Everest Re
Percent Ceded		2.00%	2.00%
Assuming Company		Everest International	Everest International
Type of Business		property business	property business
Everest Re [Member] | Everest International [Member] | 01/01/2006-12/31/2007 [Member]
Related Party Transaction [Line Items]
Ceding Company		Everest Re	Everest Re
Percent Ceded		3.50%	3.50%
Assuming Company		Everest International	Everest International
Type of Business		casualty business	casualty business
Everest Re [Member] | Everest International [Member] | 01/01/2007-12/31/2007 [Member]
Related Party Transaction [Line Items]
Ceding Company		Everest Re	Everest Re
Percent Ceded		2.50%	2.50%
Assuming Company		Everest International	Everest International
Type of Business		property business	property business
Everest Re [Member] | Everest International [Member] | 01/01/2008-12/31/2008 [Member]
Related Party Transaction [Line Items]
Ceding Company		Everest Re	Everest Re
Percent Ceded		4.00%	4.00%
Assuming Company		Everest International	Everest International
Type of Business		property / casualty business	property / casualty business
Everest Re [Member] | Everest International [Member] | 01/01/2009-12/31/2009 [Member]
Related Party Transaction [Line Items]
Ceding Company		Everest Re	Everest Re
Percent Ceded		8.00%	8.00%
Assuming Company		Everest International	Everest International
Type of Business		property / casualty business	property / casualty business
Everest Re- Canadian Branch [Member] | Bermuda Re [Member] | 01/01/2010-12/31/2010 [Member]
Related Party Transaction [Line Items]
Ceding Company		Everest Re- Canadian Branch	Everest Re- Canadian Branch
Percent Ceded		60.00%	60.00%
Assuming Company		Bermuda Re	Bermuda Re
Type of Business		property business	property business
Single Occurrence Limit | CAD	[3]	CAD 350,000
Everest Re- Canadian Branch [Member] | Bermuda Re [Member] | 01/01/2011 -12/31/2011 [Member]
Related Party Transaction [Line Items]
Ceding Company		Everest Re- Canadian Branch	Everest Re- Canadian Branch
Percent Ceded		60.00%	60.00%
Assuming Company		Bermuda Re	Bermuda Re
Type of Business		property business	property business
Single Occurrence Limit | CAD	[3]	CAD 350,000
Everest Re- Canadian Branch [Member] | Bermuda Re [Member] | 01/01/2003-12/31/2006 [Member]
Related Party Transaction [Line Items]
Ceding Company		Everest Re- Canadian Branch	Everest Re- Canadian Branch
Percent Ceded		50.00%	50.00%
Assuming Company		Bermuda Re	Bermuda Re
Type of Business		property business	property business
Everest Re- Canadian Branch [Member] | Bermuda Re [Member] | 01/01/2007-12/31/2009 [Member]
Related Party Transaction [Line Items]
Ceding Company		Everest Re- Canadian Branch	Everest Re- Canadian Branch
Percent Ceded		60.00%	60.00%
Assuming Company		Bermuda Re	Bermuda Re
Type of Business		property business	property business
Everest Re- Canadian Branch [Member] | Bermuda Re [Member] | 01/01/2012 -12/31/2012 [Member]
Related Party Transaction [Line Items]
Ceding Company		Everest Re- Canadian Branch	Everest Re- Canadian Branch
Percent Ceded		75.00%	75.00%
Assuming Company		Bermuda Re	Bermuda Re
Type of Business		property / casualty business	property / casualty business
Single Occurrence Limit | CAD	[3]	CAD 206,250
Aggregate Limit | CAD	[3]	CAD 412,500
Everest Re- Canadian Branch [Member] | Bermuda Re [Member] | 01/01/2013 -12/31/2013 [Member]
Related Party Transaction [Line Items]
Ceding Company		Everest Re- Canadian Branch	Everest Re- Canadian Branch
Percent Ceded		75.00%	75.00%
Assuming Company		Bermuda Re	Bermuda Re
Type of Business		property / casualty business	property / casualty business
Single Occurrence Limit | CAD	[3]	CAD 150,000
Aggregate Limit | CAD	[3]	CAD 412,500
Everest Re- Canadian Branch [Member] | Bermuda Re [Member] | 01/01/2014 [Member]
Related Party Transaction [Line Items]
Ceding Company		Everest Re- Canadian Branch	Everest Re- Canadian Branch
Percent Ceded		75.00%	75.00%
Assuming Company		Bermuda Re	Bermuda Re
Type of Business		property / casualty business	property / casualty business
Single Occurrence Limit | CAD	[3]	CAD 262,500
Aggregate Limit | CAD	[3]	CAD 412,500
Everest Canada [Member] | Everest Re- Canadian Branch [Member] | 01/01/2012 [Member]
Related Party Transaction [Line Items]
Ceding Company		Everest Canada	Everest Canada
Percent Ceded		80.00%	80.00%
Assuming Company		Everest Re- Canadian Branch	Everest Re- Canadian Branch
Type of Business		property business	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.

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Related-Party Transactions (Loss Portfolio Transfer Reinsurance Agreements, Net Insurance Exposures And Reserves Were Transferred To An Affiliate) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016 USD ($)
Mt. McKinley [Member]
Related Party Transaction [Line Items]
Effective Date	Sep. 19, 2000
Assuming Company	Bermuda Re
% of Business or Amount of 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 or Amount of 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

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Related-Party Transactions (Premiums And Losses Ceded By The Company To Affiliate) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Bermuda Re [Member]
Related Party Transaction [Line Items]
Ceded written premiums		$ 685,798	$ 646,001	$ 1,746,976	$ 1,713,502
Ceded earned premiums		585,993	591,656	1,718,295	1,708,807
Ceded losses and LAE	[1]	344,789	343,660	1,039,932	984,371
Everest International [Member]
Related Party Transaction [Line Items]
Ceded written premiums		(5)	168	26	313
Ceded earned premiums		(3)	208	36	441
Ceded losses and LAE		479	(724)	1,377	156
Everest Canada [Member]
Related Party Transaction [Line Items]
Assumed written premiums		12,667	11,046	39,094	29,533
Assumed earned premiums		11,611	9,174	34,740	26,498
Assumed losses and LAE		13,287	4,041	34,714	15,062
Lloyd's Syndicate [Member]
Related Party Transaction [Line Items]
Assumed written premiums		351		890
Assumed earned premiums		173		289
Mt. Logan Re Segregated Accounts [Member]
Related Party Transaction [Line Items]
Ceded written premiums		57,911	68,078	128,292	162,640
Ceded earned premiums		44,548	55,234	118,776	141,668
Ceded losses and LAE		7,420	17,071	32,750	38,542
Assumed written premiums		5,032	4,230	11,666	11,626
Assumed earned premiums		$ 5,032	$ 4,230	$ 11,666	11,626
Assumed losses and LAE

[1] 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, amortization of deferred gain on retroactive reinsurance is reflected in other income on the consolidated statements of operations and comprehensive income (loss). Upon the sale of Mt. McKinley, the value of the remaining deferred gain on retroactive reinsurance was included in the calculation of the realized gain on sale of subsidiary.

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Retirement Benefits (Summary Of Pension Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Defined Benefit Plan Disclosure [Line Items]
Pension contributions	$ 30,000	$ 0	$ 30,000	$ 0
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	2,731	3,203	8,524	9,398
Interest cost	2,371	2,758	7,093	7,926
Expected return on plan assets	(2,789)	(2,904)	(7,757)	(8,710)
Amortization of prior service cost		4		15
Amortization of net (income) loss	1,984	2,312	6,012	6,824
Net periodic benefit cost	4,297	5,373	13,872	15,453
Other Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	354	498	1,230	1,498
Interest cost	252	329	844	987
Amortization of prior service cost	(33)		(33)
Amortization of net (income) loss		76	96	497
Net periodic benefit cost	$ 573	$ 903	$ 2,137	$ 2,982

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Dispositions (Narrative) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016 USD ($)
Disposition [Abstract]
Sale of Heartland Crop Insurance, Inc.	$ 49,000
Pre-tax loss on sale of Heartland Crop Insurance, Inc.	$ 12,942

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Subsequent Events (Details) - Subsequent Events [Member] $ in Thousands	1 Months Ended
	Oct. 31, 2016 USD ($)
Maximum [Member]
Subsequent Event [Line Items]
Estimated Loss	$ 9,000,000
Minimum [Member]
Subsequent Event [Line Items]
Estimated Loss	3,000,000
Parent Company [Member] | Maximum [Member]
Subsequent Event [Line Items]
Estimated Loss	75,000
Parent Company [Member] | Minimum [Member]
Subsequent Event [Line Items]
Estimated Loss	$ 25,000