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.