Segment Reporting

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Segment Reporting

12.  SEGMENT REPORTING

The U.S. Reinsurance operation writes property and casualty reinsurance and specialty lines of business, including Marine, Aviation, Surety and Accident and Health ("A&H") business, on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies primarily within the U.S.  The International operation writes non-U.S. property and casualty reinsurance through Everest Re's branches in Canada, Singapore and through offices in Brazil, Miami and New Jersey.  The Insurance operation writes property and casualty insurance directly and through brokers, surplus lines brokers and general agents 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 loss adjustment expenses ("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.

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

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

	Three Months Ended				Six Months Ended
U.S. Reinsurance	June 30,				June 30,
(Dollars in thousands)	2017		2016		2017		2016
Gross written premiums	$	474,992	$	405,530	$	1,053,951	$	942,236
Net written premiums		135,177		161,031		354,239		384,458
Premiums earned	$	202,289	$	224,618	$	410,603	$	459,861
Incurred losses and LAE		119,747		110,152		240,181		226,322
Commission and brokerage		43,173		50,130		83,545		99,861
Other underwriting expenses		14,278		12,133		28,529		25,591
Underwriting gain (loss)	$	25,091	$	52,203	$	58,348	$	108,087

	Three Months Ended				Six Months Ended
International	June 30,				June 30,
(Dollars in thousands)	2017		2016		2017		2016
Gross written premiums	$	333,535	$	348,178	$	612,110	$	586,656
Net written premiums		111,961		124,438		215,207		212,154
Premiums earned	$	113,300	$	131,285	$	231,451	$	244,458
Incurred losses and LAE		78,459		91,427		146,873		164,842
Commission and brokerage		23,790		26,140		47,325		52,250
Other underwriting expenses		9,163		7,969		18,052		15,792
Underwriting gain (loss)	$	1,888	$	5,749	$	19,201	$	11,574

	Three Months Ended						Six Months Ended
Insurance	June 30,						June 30,
(Dollars in thousands)	2017			2016			2017			2016
Gross written premiums	$	527,047		$	424,083		$	921,898		$	778,803
Net written premiums		170,774			155,786			297,302			308,712
Premiums earned	$	152,608		$	132,952		$	297,198		$	266,461
Incurred losses and LAE		99,022			136,957			199,896			243,434
Commission and brokerage		(6,450	)		(5,861	)		(17,850	)		(15,337	)
Other underwriting expenses		40,756			38,228			77,511			76,174
Underwriting gain (loss)	$	19,280		$	(36,372	)	$	37,641		$	(37,810	)

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Dollars in thousands)	2017			2016			2017			2016
Underwriting gain (loss)	$	46,259		$	21,580		$	115,190		$	81,851
Net investment income		71,900			73,872			132,749			132,317
Net realized capital gains (losses)		(92,291	)		29,165			25,477			(37,212	)
Corporate expense		(1,512	)		(2,010	)		(5,109	)		(4,346	)
Interest, fee and bond issue cost amortization expense		(7,954	)		(8,858	)		(16,813	)		(17,717	)
Other income (expense)		10,655			(10,700	)		20,510			2,402
Income (loss) before taxes	$	27,057		$	103,049		$	272,004		$	157,295

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2017		2016		2017		2016
Canada gross written premiums	$	36,195	$	34,630	$	64,152	$	58,216

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