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 June 30, 2020

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

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  ☑      NO  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files).

YES  ☑      NO  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated Filer ☑	Smaller reporting company ☐
	Emerging growth company ☐

Indicate by check mark if the registrant is an emerging growth company and has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange act.

YES   ☐     NO  ☑

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES   ☐     NO ☑

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 August 1, 2020
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 June 30, 2020 (unaudited) and December 31, 2019	1
	Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2020 and 2019 (unaudited)	2
	Consolidated Statements of Changes in Stockholder’s Equity for the three and six months ended June 30, 2020 and 2019 (unaudited)	3
	Consolidated Statements of Cash Flows for the six months ended June 30, 2020 and 2019 (unaudited)	4
	Notes to Consolidated Interim Financial Statements (unaudited)	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operation	35
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	50
Item 4.	Controls and Procedures	50
PART II
OTHER INFORMATION
Item 1.	Legal Proceedings	51
Item 1A.	Risk Factors	51
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	52
Item 3.	Defaults Upon Senior Securities	52
Item 4.	Mine Safety Disclosures	52
Item 5.	Other Information	52
Item 6.	Exhibits	53

EVEREST REINSURANCE HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except share amounts and par value per share)	June 30, 2020		December 31, 2019
	(unaudited)
ASSETS:
Fixed maturities - available for sale, at market value (amortized cost: 2020, $7,657,782; 2019, $7,334,425 allowances for credit losses: 2020, $19,925; 2019, $0)	$	7,919,377	$	7,492,079
Fixed maturities - available for sale, at fair value		4,431		5,826
Equity securities, at fair value		789,819		764,049
Short-term investments (cost: 2020, $588,983; 2019, $279,824)		588,693		279,879
Other invested assets (cost: 2020, $1,033,457; 2019, $1,020,766)		1,033,457		1,020,766
Other invested assets, at fair value		1,786,003		1,982,582
Cash		445,617		411,122
Total investments and cash		12,567,397		11,956,303
Note Receivable - affiliated		300,000		300,000
Accrued investment income		62,738		54,383
Premiums receivable		1,479,774		1,337,344
Reinsurance receivables - unaffiliated		1,380,469		1,318,820
Reinsurance receivables - affiliated		2,823,553		3,125,269
Income taxes		86,402		65,793
Funds held by reinsureds		242,611		228,297
Deferred acquisition costs		383,855		388,238
Prepaid reinsurance premiums		396,556		413,612
Other assets		557,699		518,127
TOTAL ASSETS	$	20,281,054		19,706,186
LIABILITIES:
Reserve for losses and loss adjustment expenses	$	10,383,323	$	10,209,519
Unearned premium reserve		2,286,856		2,198,932
Funds held under reinsurance treaties		42,380		41,233
Other net payable to reinsurers		354,900		267,367
Losses in course of payment		188,853		70,541
Senior notes due 6/1/2044		397,134		397,074
Long term notes due 5/1/2067		223,625		236,758
Accrued interest on debt and borrowings		2,368		2,878
Unsettled securities payable		67,485		25,230
Other liabilities		350,558		399,229
Total liabilities		14,297,482		13,848,761
Commitments and Contingencies (Note 6)		-		-
STOCKHOLDER'S EQUITY:
Common stock, par value: $0.01; 3,000 shares authorized;   1,000 shares issued and outstanding (2020 and 2019)		-		-
Additional paid-in capital		1,100,882		1,100,678
Accumulated other comprehensive income (loss), net of deferred income   tax expense (benefit) of $38,126 at 2020 and $16,977 at 2019		143,308		64,324
Retained earnings		4,739,382		4,692,423
Total stockholder's equity		5,983,572		5,857,425
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$	20,281,054	$	19,706,186
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				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
	(unaudited)				(unaudited)
REVENUES:
Premiums earned	$	1,538,960	$	1,375,623	$	3,032,965	$	2,646,077
Net investment income		35,153		90,709		109,354		175,243
Net realized capital gains (losses):
Credit allowances on fixed maturity securities		(7,826)		-		(19,925)		-
Other-than-temporary impairments on fixed maturity securities		-		(4,929)		-		(7,219)
Other net realized capital gains (losses)		(471,534)		147,492		(202,568)		284,838
Total net realized capital gains (losses)		(479,360)		142,563		(222,493)		277,619
Other income (expense)		(5,122)		(5,055)		(9,620)		(5,785)
Total revenues		1,089,631		1,603,840		2,910,206		3,093,154
CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses		975,832		843,222		2,005,345		1,639,318
Commission, brokerage, taxes and fees		355,699		316,775		678,803		604,993
Other underwriting expenses		94,131		83,351		195,339		161,733
Corporate expenses		3,514		2,519		7,235		4,170
Interest, fee and bond issue cost amortization expense		6,922		9,684		14,382		19,512
Total claims and expenses		1,436,098		1,255,551		2,901,104		2,429,726
INCOME (LOSS) BEFORE TAXES		(346,467)		348,289		9,102		663,428
Income tax expense (benefit)		(75,874)		67,367		(36,950)		130,898
NET INCOME (LOSS)	$	(270,593)	$	280,922	$	46,052	$	532,530
Other comprehensive income (loss), net of tax:
Unrealized appreciation (depreciation) ("URA(D)")   on securities arising during the period		243,550		68,095		66,026		156,544
Less: reclassification adjustment for realized   losses (gains) included in net income (loss)		3,543		5,858		31,429		4,842
Total URA(D) on securities arising during   the period		247,093		73,953		97,455		161,386
Foreign currency translation adjustments		8,436		(7,475)		(21,197)		2,089
Reclassification adjustment for amortization of net   (gain) loss included in net income (loss)		1,806		1,151		2,726		2,302
Total benefit plan net gain (loss) for the period		1,806		1,151		2,726		2,302
Total other comprehensive income (loss), net of tax		257,335		67,629		78,984		165,777
COMPREHENSIVE INCOME (LOSS)	$	(13,258)	$	348,551	$	125,036	$	698,307
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

(Dollars in thousands, except share amounts)	2020		2019
	(unaudited)
COMMON STOCK (shares outstanding):
Balance, January 1		1,000		1,000
Balance, March 31		1,000		1,000
Balance, June 30		1,000		1,000
ADDITIONAL PAID-IN CAPITAL:
Balance, January 1	$	1,100,678	$	1,100,315
Share-based compensation plans		103		87
Balance, March 31		1,100,781		1,100,402
Share-based compensation plans		101		87
Balance, June 30		1,100,882		1,100,489
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), NET OF DEFERRED INCOME TAXES:
Balance, January 1		64,324		(126,254)
Net increase (decrease) during the period		(178,351)		98,148
Balance, March 31		(114,027)		(28,106)
Net increase (decrease) during the period		257,335		67,629
Balance, June 30		143,308		39,523
RETAINED EARNINGS:
Balance, January 1		4,692,423		4,062,696
Change to beginning balance due to adoption of ASU 2016-13		907		-
Net income (loss)		316,645		251,608
Balance, March 31		5,009,975		4,314,306
Net income (loss)		(270,593)		280,922
Balance, June 30		4,739,382		4,595,227
TOTAL STOCKHOLDER'S EQUITY, June 30	$	5,983,572	$	5,735,239
The accompanying notes are an integral part of the consolidated financial statements.

3

EVEREST REINSURANCE HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six Months Ended
	June 30,
(Dollars in thousands)	2020		2019
	(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	46,052	$	532,530
Adjustments to reconcile net income to net cash provided by operating activities:
Decrease (increase) in premiums receivable		(147,210)		(93,371)
Decrease (increase) in funds held by reinsureds, net		(13,336)		(13,929)
Decrease (increase) in reinsurance receivables		233,199		82,701
Decrease (increase) in income taxes		(41,843)		214,671
Decrease (increase) in prepaid reinsurance premiums		15,928		(110,643)
Increase (decrease) in reserve for losses and loss adjustment expenses		205,192		(21,387)
Increase (decrease) in unearned premiums		90,640		176,412
Increase (decrease) in other net payable to reinsurers		89,520		3,307
Increase (decrease) in losses in course of payment		118,964		(22,634)
Change in equity adjustments in limited partnerships		50,809		(23,662)
Distribution of limited partnership income		30,916		24,969
Change in other assets and liabilities, net		(75,931)		(65,421)
Non-cash compensation expense		15,462		13,913
Amortization of bond premium (accrual of bond discount)		4,436		826
Net realized capital (gains) losses		222,493		(277,619)
Net cash provided by (used in) operating activities		845,291		420,663
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from fixed maturities matured/called - available for sale, at market value		494,544		437,371
Proceeds from fixed maturities sold - available for sale, at market value		337,723		2,004,602
Proceeds from fixed maturities sold - available for sale, at fair value		-		2,706
Proceeds from equity securities sold - at fair value		213,003		148,973
Distributions from other invested assets		119,727		76,149
Cost of fixed maturities acquired - available for sale, at market value		(1,226,251)		(2,251,818)
Cost of equity securities acquired - at fair value		(222,818)		(228,872)
Cost of other invested assets acquired		(215,569)		(138,096)
Net change in short-term investments		(308,979)		(192,889)
Net change in unsettled securities transactions		37,744		13,100
Net cash provided by (used in) investing activities		(770,876)		(128,774)
CASH FLOWS FROM FINANCING ACTIVITIES:
Tax benefit from share-based compensation, net of expense		(15,258)		(13,739)
Cost of debt repurchase		(10,648)		-
Proceeds from issuance (cost of repayment) of note payable-affiliated		-		(300,000)
Net cash provided by (used in) financing activities		(25,906)		(313,739)
EFFECT OF EXCHANGE RATE CHANGES ON CASH		(14,015)		(5,483)
Net increase (decrease) in cash		34,495		(27,333)
Cash, beginning of period		411,122		404,522
Cash, end of period	$	445,617	$	377,189
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid (recovered)	$	4,763	$	(87,045)
Interest paid		14,782		19,433
The accompanying notes are an integral part of the consolidated financial statements.

4

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

For the Three and Six Months Ended June 30, 2020, and 2019

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 fourth quarter of 2018, Everest Global Services (“Global Services”), a previously affiliated company, was contributed to Holdings from its parent company, Holdings Ireland. 

2.  BASIS OF PRESENTATION

The unaudited interim consolidated financial statements of the Company for the three and six months ended June 30, 2020 and 2019 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, 2019 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 six months ended June 30, 2020 and 2019 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, 2019, 2018 and 2017 included in the Company’s most recent Form 10-K filing. 

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities (and disclosure of contingent assets and liabilities) at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Ultimate actual results could differ, possibly materially, from those estimates. This is particularly true given the fluid and continuing nature of the COVID-19 pandemic.  This is an ongoing event and so is the Company’s evaluation and analysis.  While the Company’s analysis considers all aspects of its operations, it does not take into account legal, regulatory or legislative intervention that could retroactively mandate or expand coverage provisions. Given the uncertainties in the current public health and economic environment, there could be an adverse impact on results for the Property & Casualty industry and the Company for the remainder of the year.  The impact is dependent on the shape and length of the economic recovery.

With recent changes in executive management and organizational structure, the Company manages its reinsurance and insurance operations as autonomous units and key strategic decisions are based on the aggregate operating results and projections for these segments of business.  Accordingly, effective January 1, 2020, the Company revised it reporting segments to Reinsurance Operations and Insurance Operations.  This replaces the previous reported segments of U.S. Reinsurance, International (reinsurance) and Insurance.  The prior year presented segment information has been reformatted to reflect this change. 

All intercompany accounts and transactions have been eliminated. 

Certain reclassifications and format changes have been made to prior years’ amounts to conform to the 2020 presentation. 

5

Application of Recently Issued Accounting Standard Changes. 

Accounting for Income Taxes.  In December 2019, The Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, which provides simplification of existing guidance for income taxes, including the removal of certain exceptions related to recognition of deferred tax liabilities on foreign subsidiaries. The guidance is effective for annual reporting periods beginning after December 15, 2020 and interim periods within that annual reporting period. The Company is currently evaluating the impact of the adoption of ASU 2019-12 on its financial statements.

Simplification of Disclosure Requirements.  In August 2018, the Securities and Exchange Commission (“SEC”) issued Final Rule Release #33-10532 (“the Rule”) which addresses the simplification of the SEC’s disclosure requirements for quarterly and annual financial reports.  The main change addressed by the Rule that is applicable to the Company is a new requirement to disclose changes in equity by line item with subtotals for each interim reporting period on the Statements of Changes in Shareholders’ Equity.  The Rule became effective for all financial reports filed after November 5, 2018 (30 days after its publication in the Federal Register), except for the additional requirement for the Statements of Changes in Shareholders’ Equity which was to be implemented for first quarter 2019 reporting. The Company has adopted the portions of the Rule that became effective November 5, 2018.  The portion of the Rule related to the new requirement for the Statements of Changes in Shareholders’ Equity was adopted by the Company in the first quarter of 2019.

Accounting for Cloud Computing Arrangement.  In August 2018, FASB issued ASU 2018-15, which outlines accounting for implementation costs of a cloud computing arrangement that is a service contract.  This guidance requires that implementation costs of a cloud computing arrangement that is a service contract must be capitalized and expensed in accordance with the existing provisions provided in Subtopic 350-40 regarding development of internal use software. In addition, any capitalized implementation costs should be amortized over the term of the hosting arrangement.  The guidance is effective for annual reporting periods beginning after December 15, 2019 and interim periods within that annual reporting period. The Company adopted the guidance as of January 1, 2020. The adoption of ASU 2018-15 did not have a material impact on the Company’s financial statements.

Accounting for Impact on Income Taxes due to Tax Reform.  In December 2017, the SEC issued Staff Accounting Bulletin (“SAB”) 118, which provides guidance on the application of FASB Accounting Standards Codification (“ASC”) Topic 740, Income Taxes, due to the enactment of TCJA.  SAB 118 became effective upon release.  The Company has adopted the provisions of SAB 118 with respect to measuring the tax effects for the modifications to the determination of tax basis loss reserves.  In 2018, the Company recorded adjustments to the amount of tax expense it recorded in 2017 with respect to the TCJA as estimated amounts were finalized, which did not have a material impact on the Company’s financial statements.

Amortization of Bond Premium.  In March 2017, FASB issued ASU 2017-08 which outlines guidance on the amortization period for premium on callable debt securities.  The new guidance requires that the premium on callable debt securities be amortized through the earliest call date rather than through the maturity date of the callable security.  The guidance is effective for annual and interim reporting periods beginning after December 15, 2018.  The Company adopted the guidance effective January 1, 2019. The adoption of ASU 2017-08 did not have a material impact on the Company’s financial statements.

Valuation of Financial Instruments.  In June 2016, FASB issued ASU 2016-13 (and has subsequently issued related guidance and amendments in ASU 2019-11 and ASU 2019-10 in November 2019) which outline guidance on the valuation of and accounting for assets measured at amortized cost and available for sale debt securities.  The carrying value of assets measured at amortized cost will now be presented as the amount expected to be collected on the financial asset (amortized cost less an allowance for credit losses valuation account).  Available for sale debt securities will now record credit losses through an allowance for credit losses, which will be limited to the amount by which fair value is below amortized cost.  The guidance is effective for annual and interim reporting periods beginning after December 15, 2019.  The Company adopted the guidance effective January 1, 2020.  The adoption resulted in a cumulative adjustment of $907 thousand in retained earnings, which is disclosed separately within the Consolidated Statements of Shareholders’ Equity.

6

Leases.  In February 2016, FASB issued ASU 2016-02 (and subsequently issued ASU 2018-11 in July, 2018) which outline new guidance on the accounting for leases.  The new guidance requires the recognition of lease assets and lease liabilities on the balance sheets for most leases that were previously deemed operating leases and required only lease expense presentation in the statements of operations.  The guidance is effective for annual and interim reporting periods beginning after December 15, 2018.  The Company adopted ASU 2016-02 effective January 1, 2019 and elected to utilize a cumulative-effect adjustment to the opening balance of retained earnings for the year of adoption.  Accordingly, the Company’s reporting for the comparative periods prior to adoption continue to be presented in the financial statements in accordance with previous lease accounting guidance.  The Company also elected to apply the package of practical expedients applicable to the Company in the updated guidance for transition for leases in effect at adoption.  The Company did not elect the hindsight practical expedient to determine the lease term of existing leases (e.g. The Company did not re-assess lease renewals, termination options nor purchase options in determining lease terms).  The adoption of the updated guidance resulted in the Company recognizing a right-of-use asset of $60,325 thousand as part of other assets and a lease liability of $66,551 thousand as part of other liabilities in the consolidated balance sheet, as well as de-recognizing the liability for deferred rent that was required under the previous guidance.  The cumulative effect adjustment to the opening balance of retained earnings was zero. The adoption of the updated guidance did not have a material effect on the Company’s results of operations or liquidity.

Any issued guidance and pronouncements, other than those directly referenced above, are deemed by the Company to be either not applicable or immaterial to its financial statements. 

3.  INVESTMENTS

Effective January 1, 2020, the Company adopted ASU 2016-13 which provides guidance on the accounting for fixed maturity securities.  The guidance requires the Company to record allowances for credit losses for securities that are deemed to have valuation deterioration due to credit risk issues.  The initial table below presents the amortized cost, allowance for credit losses, gross unrealized appreciation/(depreciation) and market value of fixed maturity securities as of June 30, 2020 in accordance with ASU 2016-13 guidance.  The second table presents the amortized cost, gross unrealized appreciation/(depreciation), market value and other-than-temporary impairments (“OTTI”) in AOCI as of December 31, 2019, in accordance with previously applicable guidance

	At June 30, 2020
	Amortized		Allowances for		Unrealized		Unrealized		Market
(Dollars in thousands)	Cost		Credit Losses		Appreciation		Depreciation		Value
Fixed maturity securities
U.S. Treasury securities and obligations of   U.S. government agencies and corporations	$	741,244	$	-	$	31,740	$	-	$	772,984
Obligations of U.S. states and political   subdivisions		507,475		-		27,597		(3,789)		531,283
Corporate securities		2,935,665		(19,398)		135,213		(51,922)		2,999,558
Asset-backed securities		991,779		-		14,504		(21,500)		984,783
Mortgage-backed securities
Commercial		348,329		-		33,506		(788)		381,047
Agency residential		604,360		-		33,190		(349)		637,201
Non-agency residential		509		-		-		(3)		506
Foreign government securities		636,346		-		38,578		(5,034)		669,890
Foreign corporate securities		892,075		(527)		57,601		(7,024)		942,125
Total fixed maturity securities	$	7,657,782	$	(19,925)	$	371,929	$	(90,409)	$	7,919,377

7

	At December 31, 2019
	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	$	768,374	$	10,128	$	(987)	$	777,515	$	-
Obligations of U.S. states and political   subdivisions		506,347		29,651		(87)		535,911		-
Corporate securities		2,777,097		70,898		(26,438)		2,821,557		245
Asset-backed securities		761,607		5,659		(1,309)		765,957		-
Mortgage-backed securities
Commercial		311,961		17,242		(154)		329,049		-
Agency residential		625,612		19,395		(320)		644,687		-
Non-agency residential		1,638		-		-		1,638		-
Foreign government securities		646,149		18,908		(7,050)		658,007		27
Foreign corporate securities		935,640		31,257		(9,139)		957,758		333
Total fixed maturity securities	$	7,334,425	$	203,138	$	(45,484)	$	7,492,079	$	605

^(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 tables 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 June 30, 2020				At December 31, 2019
	Amortized		Market		Amortized		Market
(Dollars in thousands)	Cost		Value		Cost		Value
Fixed maturity securities – available for sale
Due in one year or less	$	716,996	$	714,607	$	569,506	$	563,730
Due after one year through five years		2,773,635		2,866,814		2,919,966		2,963,903
Due after five years through ten years		1,615,652		1,735,868		1,541,695		1,602,642
Due after ten years		606,522		598,551		602,440		620,473
Asset-backed securities		991,779		984,783		761,607		765,957
Mortgage-backed securities
Commercial		348,329		381,047		311,961		329,049
Agency residential		604,360		637,201		625,612		644,687
Non-agency residential		509		506		1,638		1,638
Total fixed maturity securities	$	7,657,782	$	7,919,377	$	7,334,425	$	7,492,079

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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 Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Increase (decrease) during the period between the market value and cost of investments carried at market value, and deferred taxes thereon:
Fixed maturity securities	$	311,927	$	93,919	$	123,520	$	204,828
Fixed maturity securities, other-than-temporary impairment		-		(368)		-		(700)
Change in unrealized appreciation (depreciation), pre-tax		311,927		93,551		123,520		204,128
Deferred tax benefit (expense)		(64,834)		(19,675)		(26,065)		(42,889)
Deferred tax benefit (expense), other-than-temporary impairment		-		77		-		147
Change in unrealized appreciation (depreciation),  net of deferred taxes, included in stockholder's equity	$	247,093	$	73,953	$	97,455	$	161,386

The Company reviews all of its fixed maturity, available for sale securities whose fair value has fallen below their amortized cost at the time of review.  The Company then assesses whether the decline in value is temporary or credit related.  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 a credit 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 intends to sell the security or is more likely than not to sell the security, the Company records the entire fair value adjustment in net realized capital gains (losses) in the Company’s consolidated statements of operations and comprehensive income (loss).  If the Company determines that the decline is credit related 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 Company establishes a credit allowance equal to the estimated credit loss and is recorded in net realized capital gains (losses) in the Company’s consolidated statements of operations and comprehensive income (loss).  The amount of the allowance for a given security will generally be the difference between a discounted cash flow model and the Company’s carrying value.  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. We will adjust the credit allowance account for future changes in credit loss estimates for a security and record this adjustment through net realized capital gains (losses) in the Company’s consolidated statements of operations and comprehensive income (loss).

The Company does not create an allowance for uncollectible interest.  If interest is not received when due, the interest receivable is immediately reversed and no additional interest is accrued. If future interest is received that has not been accrued, it is recorded as income at that time.

Prior to the adoption of ASU 2016-13 effective January 1, 2020, estimated credit losses were recorded as adjustments to the carrying value of the security and any subsequent improvement in market value were recorded through other comprehensive income.

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

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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 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 June 30, 2020 By Security Type
	Less than 12 months				Greater than 12 months				Total
			Gross				Gross				Gross
	Market		Unrealized		Market		Unrealized		Market		Unrealized
(Dollars in thousands)	Value		Depreciation		Value		Depreciation		Value		Depreciation
Fixed maturity securities -   available for sale
Obligations of U.S. states and   political subdivisions		70,056		(3,564)		3,331		(225)		73,387		(3,789)
Corporate securities		423,967		(20,116)		122,165		(31,806)		546,132		(51,922)
Asset-backed securities		437,211		(16,250)		129,870		(5,250)		567,081		(21,500)
Mortgage-backed securities
Commercial		31,984		(756)		3,303		(32)		35,287		(788)
Agency residential		23,621		(342)		1,166		(7)		24,787		(349)
Non-agency residential		161		(2)		344		(1)		505		(3)
Foreign government securities		51,453		(506)		41,802		(4,528)		93,255		(5,034)
Foreign corporate securities		90,660		(2,151)		38,483		(4,873)		129,143		(7,024)
Total fixed maturity securities	$	1,129,113	$	(43,687)	$	340,464	$	(46,722)	$	1,469,577	$	(90,409)

	Duration of Unrealized Loss at June 30, 2020 By Maturity
	Less than 12 months				Greater than 12 months				Total
			Gross				Gross				Gross
	Market		Unrealized		Market		Unrealized		Market		Unrealized
(Dollars in thousands)	Value		Depreciation		Value		Depreciation		Value		Depreciation
Fixed maturity securities
Due in one year or less	$	32,323	$	(473)	$	52,176	$	(8,444)	$	84,499	$	(8,917)
Due in one year through five years		340,168		(12,125)		94,125		(6,849)		434,293		(18,974)
Due in five years through ten years		154,542		(6,913)		2,842		(659)		157,384		(7,572)
Due after ten years		109,103		(6,826)		56,638		(25,480)		165,741		(32,306)
Asset-backed securities		437,211		(16,250)		129,870		(5,250)		567,081		(21,500)
Mortgage-backed securities		55,766		(1,100)		4,813		(40)		60,579		(1,140)
Total fixed maturity securities	$	1,129,113	$	(43,687)	$	340,464	$	(46,722)	$	1,469,577	$	(90,409)

The aggregate market value and gross unrealized losses related to investments in an unrealized loss position at June 30, 2020 were $1,469,577 thousand and $90,409 thousand, respectively.  The market value of securities for the single issuer whose securities comprised the largest unrealized loss position at June 30, 2020, did not exceed 0.1% 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 $43,687 thousand of unrealized losses related to fixed maturity securities that have been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate securities and asset backed securities.  Of these unrealized losses, $25,991 thousand were related to securities that were rated investment grade by at least one nationally recognized statistical rating agency.  The $46,722 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 asset backed securities.  Of these unrealized losses $15,488 thousand were related to securities that were rated investment grade by at least one nationally recognized statistical rating agency. There was no gross unrealized depreciation for mortgage-backed securities related to sub-prime and alt-A loans. In all instances, there were no projected cash flow shortfalls to recover the full book value of the

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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 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, 2019 By Security Type
	Less than 12 months				Greater than 12 months				Total
			Gross				Gross				Gross
	Market		Unrealized		Market		Unrealized		Market		Unrealized
(Dollars in thousands)	Value		Depreciation		Value		Depreciation		Value		Depreciation
Fixed maturity securities -   available for sale
U.S. Treasury securities and   obligations of U.S. government   agencies and corporations	$	8,997	$	(141)	$	203,780	$	(846)	$	212,777	$	(987)
Obligations of U.S. states and   political subdivisions		4,600		(38)		4,518		(49)		9,118		(87)
Corporate securities		334,973		(5,186)		230,679		(21,252)		565,652		(26,438)
Asset-backed securities		159,695		(887)		76,351		(422)		236,046		(1,309)
Mortgage-backed securities
Commercial		13,083		(87)		16,374		(67)		29,457		(154)
Agency residential		19,019		(82)		17,147		(238)		36,166		(320)
Non-agency residential		-		-		690		-		690		-
Foreign government securities		113,256		(858)		109,953		(6,192)		223,209		(7,050)
Foreign corporate securities		105,551		(1,260)		121,710		(7,879)		227,261		(9,139)
Total fixed maturity securities	$	759,174	$	(8,539)	$	781,202	$	(36,945)	$	1,540,376	$	(45,484)

	Duration of Unrealized Loss at December 31, 2019 By Maturity
	Less than 12 months				Greater than 12 months				Total
			Gross				Gross				Gross
	Market		Unrealized		Market		Unrealized		Market		Unrealized
(Dollars in thousands)	Value		Depreciation		Value		Depreciation		Value		Depreciation
Fixed maturity securities
Due in one year or less	$	34,542	$	(1,067)	$	188,755	$	(6,411)	$	223,297	$	(7,478)
Due in one year through five years		226,521		(2,554)		357,728		(11,562)		584,249		(14,116)
Due in five years through ten years		251,967		(3,292)		43,129		(6,785)		295,096		(10,077)
Due after ten years		54,347		(570)		81,028		(11,460)		135,375		(12,030)
Asset-backed securities		159,695		(887)		76,351		(422)		236,046		(1,309)
Mortgage-backed securities		32,102		(169)		34,211		(305)		66,313		(474)
Total fixed maturity securities	$	759,174	$	(8,539)	$	781,202	$	(36,945)	$	1,540,376	$	(45,484)

The aggregate market value and gross unrealized losses related to investments in an unrealized loss position at December 31, 2019 were $1,540,376 thousand and $45,484 thousand, respectively.  The market value of securities for the single issuer whose securities comprised the largest unrealized loss position at December 31, 2019, did not exceed 0.2% 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 $8,539 thousand of unrealized losses related to fixed maturity securities that have been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate securities. Of these unrealized losses, $5,645 thousand were related to securities that were rated

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investment grade by at least one nationally recognized statistical rating agency.  The $36,945 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. Of these unrealized losses $16,976 thousand were related to securities that were rated investment grade by at least one nationally recognized statistical rating agency. There was no gross unrealized depreciation for mortgage-backed securities related to sub-prime and alt-A loans. 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 components of net investment income are presented in the tables below for the periods indicated: 

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Fixed maturities	$	74,897	$	65,374	$	148,985	$	132,428
Equity securities		2,024		2,319		3,616		3,750
Short-term investments and cash		578		3,169		2,148		5,905
Other invested assets
Limited partnerships		(40,465)		15,116		(33,469)		23,171
Dividends from preferred shares of affiliate		7,758		7,758		15,516		15,516
Other		(2,962)		3,299		(16,034)		6,279
Gross investment income before adjustments		41,830		97,035		120,762		187,049
Funds held interest income (expense)		901		1,445		4,158		4,326
Interest income from Parent		1,281		-		2,563		-
Gross investment income		44,012		98,480		127,483		191,375
Investment expenses		(8,859)		(7,771)		(18,129)		(16,132)
Net investment income	$	35,153	$	90,709	$	109,354	$	175,243
(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 $1,040,369 thousand in limited partnerships and private placement loans at June 30, 2020.  These commitments will be funded when called in accordance with the partnership and loan agreements, which have investment periods that expire, unless extended, through 2026.

The Company participates in a private placement liquidity sweep facility (“the facility”).  The primary purpose of the facility is to enhance the Company’s return on its short-term investments and cash positions.  The facility invests in high quality, short-duration securities and permits daily liquidity. The Company consolidates its participation in the facility. As of June 30, 2020, the market value of investments in the facility consolidated within the Company’s balance sheets was $340,950 thousand. 

Other invested assets, at fair value, as of June 30, 2020 and December 31, 2019, were comprised of preferred shares held in Preferred Holdings, an affiliated company. 

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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				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Fixed maturity securities, market value:
Allowances for credit losses	$	(7,826)	$	-	$	(19,925)	$	-
Other-than-temporary impairments		-		(4,929)		-		(7,219)
Gains (losses) from sales		1,963		(2,313)		(18,974)		1,113
Fixed maturity securities, fair value:
Gains (losses) from sales		-		356		-		356
Gains (losses) from fair value adjustments		(272)		-		(1,395)		13
Equity securities, fair value:
Gains (losses) from sales		16,274		(1,314)		(11,328)		3,730
Gains (losses) from fair value adjustments		148,205		25,829		26,536		103,675
Other invested assets		1,292		(152)		(1,035)		244
Other invested assets, fair value:
Gains (losses) from fair value adjustments		(639,058)		125,024		(196,579)		175,651
Short-term investment gains (losses)		62		62		207		56
Total net realized capital gains (losses)	$	(479,360)	$	142,563	$	(222,493)	$	277,619

	Roll Forward of Allowance for Credit Losses
	Three Months Ended June 30, 2020								Six Months Ended June 30, 2020
			Foreign		Foreign						Foreign		Foreign
	Corporate		Government		Corporate				Corporate		Government		Corporate
	Securities		Securities		Securities		Total		Securities		Securities		Securities		Total
Beginning Balance	$	(11,468)	$	(70)	$	(561)	$	(12,099)	$	-	$	-	$	-	$	-
Credit losses on securities where credit
losses were not previously recorded		(10,355)		-		-		(10,355)		(21,823)		(70)		(561)		(22,454)
Increases in allowance on previously
impaired securities		(555)		-		(211)		(766)		(555)		-		(211)		(766)
Decreases in allowance on previously
impaired securities		1,238		-		116		1,354		1,238		-		116		1,354
Reduction in allowance due to disposals		1,742		70		129		1,941		1,742		70		129		1,941
Balance as of June 30, 2020	$	(19,398)	$	-	$	(527)	$	(19,925)	$	(19,398)	$	-	$	(527)	$	(19,925)

The Company recorded as net realized capital gains (losses) in the consolidated statements of operations and comprehensive income (loss) fair value re-measurements, allowances for credit losses per ASU 2016-13 and write-downs in the value of securities deemed to be impaired on an other-than-temporary basis in prior years 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. 

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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				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Proceeds from sales of fixed maturity securities	$	173,479	$	403,419	$	337,723	$	2,007,308
Gross gains from sales		8,755		3,133		10,601		11,237
Gross losses from sales		(6,792)		(5,090)		(29,575)		(9,768)
Proceeds from sales of equity securities	$	8,842	$	79,735	$	213,003	$	148,973
Gross gains from sales		18,172		2,577		20,753		8,248
Gross losses from sales		(1,898)		(3,891)		(32,081)		(4,518)

4.  RESERVES FOR LOSSES AND LAE

Activity in the reserve for losses and LAE is summarized for the periods indicated: 

	Six Months Ended June 30,
(Dollars in thousands)		2020		2019
Gross reserves beginning of period	$	10,209,519	$	10,167,018
Less reinsurance recoverables		(4,215,348)		(4,697,543)
Net reserves beginning of period		5,994,171		5,469,475
Incurred related to:
Current year		2,006,988		1,615,277
Prior years		(1,643)		24,041
Total incurred losses and LAE		2,005,345		1,639,318
Paid related to:
Current year		474,372		391,381
Prior years		1,025,866		1,144,204
Total paid losses and LAE		1,500,238		1,535,585
Foreign exchange/translation adjustment and cumulative adjustment due to adoption of ASU 2016-13		(26,906)		228
Net reserves end of period		6,472,371		5,573,437
Plus reinsurance recoverables		3,910,952		4,574,975
Gross reserves end of period	$	10,383,323	$	10,148,412
(Some amounts may not reconcile due to rounding.)

Current year incurred losses were $2,006,988 thousand for the six months ended June 30, 2020 and $1,615,277 thousand for the six months ended June 30, 2019, respectively.  The increase in current year incurred losses in 2020 compared to 2019 was primarily due to $73,691 thousand of incurred losses due to COVID-19 as well as the impact of the increase in premiums earned.

5.  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

14

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 managing publicly traded securities 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.  At June 30, 2020, $953,190 thousand of fixed maturities, market value and $4,431 thousand of fixed maturities, fair value were fair valued using unobservable inputs.  The majority of the fixed maturities, market value, $782,259 thousand and all of the $4,431 thousand of fixed maturities, fair value, were valued by investment managers’ valuation committees and many of these fair values were substantiated by valuations from independent third parties.  The Company has procedures in place to review and evaluate these independent third party valuations.  The remaining Level 3 fixed maturities of $170,931 thousand were fair valued by the Company at either par or amortized cost, which the Company believes approximates fair value.  At December 31, 2019, $702,331 thousand of fixed maturities, market value and $5,826 thousand of fixed maturities, fair value were fair valued using unobservable inputs.  The majority of the fixed maturities, market value, $610,873 thousand and all of the $5,826 thousand of fixed maturities, fair value, were valued by investment managers’ valuation committees and a majority of these fair values were substantiated by valuations from independent third parties.  The remaining Level 3 fixed maturities of $91,458 thousand were fair valued by the Company at either par or amortized cost, which the Company believes approximates fair value. 

The Company internally manages a public equity portfolio which had a fair value at June 30, 2020 and December 31, 2019 of $365,554 thousand and $170,888 thousand, respectively, and all prices were obtained from publicly 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. During the three months ended June 30, 2020, the Company purchased preferred stock in a private entity and these are categorized as Level 3.

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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 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, were categorized as Level 3 at June 30, 2020 and December 31, 2019, 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.  The 25 year redeemable, convertible preferred stock with a 1.75% coupon is valued using a pricing model. The pricing model includes observable inputs such as the U.S. Treasury yield curve rate T note constant maturity 10 year and the swap rate on the Company’s June 1, 2044, 4.868% senior notes, with adjustments to reflect the Company’s own assumptions about the inputs that market participants would use in pricing the asset.

16

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)	June 30, 2020		(Level 1)		(Level 2)		(Level 3)
Assets:
Fixed maturities, market value
U.S. Treasury securities and obligations of   U.S. government agencies and corporations	$	772,984	$	-	$	772,984	$	-
Obligations of U.S. States and political subdivisions		531,283		-		531,283		-
Corporate securities		2,999,558		-		2,348,372		651,186
Asset-backed securities		984,783		-		689,053		295,730
Mortgage-backed securities
Commercial		381,047		-		381,047		-
Agency residential		637,201		-		637,201		-
Non-agency residential		506		-		506		-
Foreign government securities		669,890		-		669,890		-
Foreign corporate securities		942,125		-		935,851		6,274
Total fixed maturities, market value		7,919,377		-		6,966,187		953,190
Fixed maturities, fair value		4,431		-		-		4,431
Equity securities, fair value		789,819		740,197		39,745		9,877
Other invested assets, fair value		1,786,003		-		-		1,786,003

There were no transfers between Level 1 and Level 2 for the six months ended June 30, 2020.

17

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, 2019		(Level 1)		(Level 2)		(Level 3)
Assets:
Fixed maturities, market value
U.S. Treasury securities and obligations of   U.S. government agencies and corporations	$	777,515	$	-	$	777,515	$	-
Obligations of U.S. States and political subdivisions		535,911		-		535,911		-
Corporate securities		2,821,557		-		2,274,618		546,939
Asset-backed securities		765,957		-		612,316		153,641
Mortgage-backed securities
Commercial		329,049		-		329,049		-
Agency residential		644,687		-		644,687		-
Non-agency residential		1,638		-		1,638		-
Foreign government securities		658,007		-		658,007		-
Foreign corporate securities		957,758		-		956,007		1,751
Total fixed maturities, market value		7,492,079		-		6,789,748		702,331
Fixed maturities, fair value		5,826		-		-		5,826
Equity securities, fair value		764,049		719,548		44,501		-
Other invested assets, fair value		1,982,582		-		-		1,982,582

In addition, $224,467 thousand and $209,578 thousand of investments within other invested assets on the consolidated balance sheets as of June 30, 2020 and December 31, 2019, respectively, are not included within the fair value hierarchy tables as the assets are measured at NAV as a practical expedient to determine fair value. 

18

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

	Total Fixed Maturities, Market Value
	Three Months Ended June 30, 2020								Six Months Ended June 30, 2020
	Corporate		Asset		Foreign				Corporate		Foreign		Foreign
(Dollars in thousands)	Securities		Backed Securities		Corporate		Total		Securities		Corporate		Corporate		Total
Beginning balance	$	642,432	$	238,631	$	-	$	881,063	$	546,939	$	153,641	$	1,751	$	702,331
Total gains or (losses) (realized/unrealized)
Included in earnings		(248)		121		(97)		(224)		(462)		125		(97)		(434)
Included in other comprehensive   income (loss)		(549)		18,092		(40)		17,503		(3,906)		2,210		(40)		(1,736)
Purchases, issuances and settlements		14,346		38,886		5,434		58,666		113,410		139,754		3,683		256,847
Transfers in and/or (out) of Level 3		(4,795)		-		977		(3,818)		(4,795)		-		977		(3,818)
Ending balance	$	651,186	$	295,730	$	6,274	$	953,190	$	651,186	$	295,730	$	6,274	$	953,190
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	$	-	$	-	$	-	$	-	$	(539)	$	-	$	-	$	(539)
(Some amounts may not reconcile due to rounding.)

	Total Fixed Maturities, Market Value
	Three Months Ended June 30, 2019						Six Months Ended June 30, 2019
	Corporate		Foreign				Corporate		Foreign
(Dollars in thousands)	Securities		Corporate		Total		Securities		Corporate		Total
Beginning balance	$	367,178	$	7,298	$	374,476	$	376,250	$	7,744	$	383,994
Total gains or (losses) (realized/unrealized)
Included in earnings		(2,528)		(238)		(2,766)		2,330		(119)		2,211
Included in other comprehensive income (loss)		1,870		-		1,870		2,444		-		2,444
Purchases, issuances and settlements		101,732		(4,967)		96,765		89,686		(5,532)		84,154
Transfers in and/or (out) of Level 3		3,977		-		3,977		1,519		-		1,519
Ending balance	$	472,229	$	2,093	$	474,322	$	472,229	$	2,093	$	474,322
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.)

	Total Fixed Maturities, Fair Value
	Three Months Ended June 30, 2020				Six Months Ended June 30, 2020
	Foreign				Foreign
(Dollars in thousands)	Corporate		Total		Corporate		Total
Beginning balance fixed maturities at fair value	$	4,703	$	4,703	$	5,826	$	5,826
Total gains or (losses) (realized/unrealized)
Included in earnings		(272)		(272)		(1,395)		(1,395)
Included in other comprehensive income (loss)		-		-		-		-
Transfers in and/or (out) of Level 3		-		-		-		-
Ending balance	$	4,431	$	4,431	$	4,431	$	4,431
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.)

19

	Total Fixed Maturities, Fair Value
	Three Months Ended June 30, 2019				Six Months Ended June 30, 2019
	Foreign				Foreign
(Dollars in thousands)	Corporate		Total		Corporate		Total
Beginning balance fixed maturities at fair value	$	2,350	$	2,350	$	2,337	$	2,337
Total gains or (losses) (realized/unrealized)
Included in earnings		356		356		369		369
Included in other comprehensive income (loss)		-		-		-		-
Purchases, issuances and settlements		(2,706)		(2,706)		(2,706)		(2,706)
Transfers in and/or (out) of Level 3		-		-		-		-
Ending balance	$	-	$	-	$	-	$	-
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 for fixed maturities, market value were ($3,818) thousand for both the three and six months ended June 30, 2020 and were $3,977 thousand and $1,519 thousand for the three and six months ended June 30, 2019, respectively. The transfers during 2020 were related to securities that were priced using investment managers as of December 31, 2019 and were subsequently priced by a recognized pricing service as of June 30, 2020.  The transfers during 2019 were related to securities that were priced using a recognized pricing service as of December 31, 2018 and were subsequently priced by investment managers as of June 30, 2019.

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Equity securities
Balance, beginning of period	$	-	$	-	$	-	$	-
Total (gains) or losses (realized/unrealized)
Included in earnings		-		-		-		-
Included in other comprehensive income (loss)		-		-		-		-
Purchases, issuances and settlements		9,877		-		9,877		-
Transfers in and/or (out) of Level 3		-		-		-		-
Balance, end of period	$	9,877	$	-	$	9,877	$	-
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 liabilities still held at the reporting date	$	-	$	-	$	-	$	-
(Some amounts may not reconcile due to rounding.)

20

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				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Other invested assets, fair value:
Beginning balance	$	2,425,061	$	1,767,963	$	1,982,582	$	1,717,336
Total gains or (losses) (realized/unrealized)
Included in earnings		(639,058)		125,025		(196,579)		175,652
Included in other comprehensive income (loss)		-		-		-		-
Purchases, issuances and settlements		-		-		-		-
Transfers in and/or (out) of Level 3		-		-		-		-
Ending balance	$	1,786,003	$	1,892,988	$	1,786,003	$	1,892,988
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.)

6.  COMMITMENTS AND 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 Company 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 contract.

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

	At June 30, 2020		At December 31, 2019
(Dollars in thousands)
The Prudential	$	141,186	$	141,703
Unaffiliated life insurance company		33,778		35,082

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7.  COMPREHENSIVE INCOME (LOSS)

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

	Three Months Ended June 30, 2020						Six Months Ended June 30, 2020
(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	$	307,356		(63,806)	$	243,550	$	83,586		(17,560)	$	66,026
URA(D) on securities - OTTI		-		-		-		-		-		-
Reclassification of net realized losses (gains) included in net income (loss)		4,570		(1,027)		3,543		39,934		(8,505)		31,429
Foreign currency translation adjustments		10,675		(2,239)		8,436		(26,857)		5,660		(21,197)
Reclassification of amortization of net gain (loss) included in net income (loss)		2,286		(480)		1,806		3,451		(725)		2,726
Total other comprehensive income (loss)	$	324,887	$	(67,552)	$	257,335	$	100,114	$	(21,130)	$	78,984
(Some amounts may not reconcile due to rounding)

	Three Months Ended June 30, 2019						Six Months Ended June 30, 2019
(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	$	86,524	$	(18,138)	$	68,386	$	198,965	$	(41,868)	$	157,097
URA(D) on securities - OTTI		(368)		77		(291)		(700)		147		(553)
Reclassification of net realized losses (gains) included in net income (loss)		7,394		(1,536)		5,858		5,862		(1,020)		4,842
Foreign currency translation adjustments		(9,465)		1,990		(7,475)		2,645		(556)		2,089
Reclassification of amortization of net gain (loss) included in net income (loss)		1,457		(306)		1,151		2,914		(612)		2,302
Total other comprehensive income (loss)	$	85,542	$	(17,913)	$	67,629	$	209,686	$	(43,909)	$	165,777
(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				Six Months Ended				Affected line item within the
	June 30,				June 30,				statements of operations and
AOCI component	2020		2019		2020		2019		comprehensive income (loss)
(Dollars in thousands)
URA(D) on securities	$	4,570	$	7,394	$	39,934	$	5,862	Other net realized capital gains (losses)
		(1,027)		(1,536)		(8,505)		(1,020)	Income tax expense (benefit)
	$	3,543	$	5,858	$	31,429	$	4,842	Net income (loss)
Benefit plan net gain (loss)	$	2,286	$	1,457	$	3,451	$	2,914	Other underwriting expenses
		(480)		(306)		(725)		(612)	Income tax expense (benefit)
	$	1,806	$	1,151	$	2,726	$	2,302	Net income (loss)
(Some amounts may not reconcile due to rounding)

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Beginning balance of URA (D) on securities	$	(25,025)	$	31,483	$	124,612	$	(55,950)
Current period change in URA (D) of investments - temporary		247,093		74,244		97,455		161,939
Current period change in URA (D) of investments - non-credit OTTI		-		(291)		-		(553)
Ending balance of URA (D) on securities		222,068		105,436		222,068		105,436
Beginning balance of foreign currency translation adjustments		(15,367)		6,678		14,267		(2,886)
Current period change in foreign currency translation adjustments		8,436		(7,475)		(21,197)		2,089
Ending balance of foreign currency translation adjustments		(6,931)		(797)		(6,931)		(797)
Beginning balance of benefit plan net gain (loss)		(73,635)		(66,267)		(74,556)		(67,418)
Current period change in benefit plan net gain (loss)		1,806		1,151		2,726		2,302
Ending balance of benefit plan net gain (loss)		(71,829)		(65,116)		(71,829)		(65,116)
Ending balance of accumulated other comprehensive income (loss)	$	143,308	$	39,523	$	143,308	$	39,523

8.  COLLATERALIZED 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 non-affiliated ceding companies.  At June 30, 2020, the total amount on deposit in the trust account was $826,662 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.  These reinsurance agreements expired in April 2018.

On November 18, 2014, the Company entered into a collateralized reinsurance agreement with Kilimanjaro 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. These reinsurance agreements expired in November, 2019.

On December 1, 2015, the Company entered into two collateralized reinsurance agreements with Kilimanjaro 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.

On April 13, 2017, the Company entered into six collateralized reinsurance agreements with Kilimanjaro to provide the Company with annual aggregate catastrophe reinsurance coverage.  The initial three agreements are four year reinsurance contracts which cover named storm and earthquake events.  These agreements provide up to $225,000 thousand, $400,000 thousand and $325,000 thousand, respectively, of annual

23

aggregate reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico and Canada. The subsequent three agreements are five year reinsurance contracts which cover named storm and earthquake events.  These agreements provide up to $50,000 thousand, $75,000 thousand and $175,000 thousand, respectively, of annual aggregate reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico and Canada. 

On April 30, 2018, the Company entered into four collateralized reinsurance agreements with Kilimanjaro to provide the Company with catastrophe reinsurance coverage.  These agreements are multi-year reinsurance contracts which cover named storm and earthquake events. The first two agreements are four year reinsurance contracts which provide up to $62,500 thousand and $200,000 thousand, respectively, of annual aggregate reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico, the U.S. Virgin Islands and Canada.  The remaining two agreements are five year reinsurance contracts which provide up to $62,500 thousand and $200,000 thousand, respectively, of annual aggregate reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico, the U.S. Virgin Islands and Canada.

On December 12, 2019, the Company entered into four collateralized reinsurance agreements with Kilimanjaro to provide the Company with catastrophe reinsurance coverage.  These agreements are multi-year reinsurance contracts which cover named storm and earthquake events.  The first two agreements are four year reinsurance contracts which provide up to $150,000 thousand and $275,000 thousand, respectively, of annual aggregate reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico, the U.S. Virgin Islands and Canada.  The remaining two agreements are five year reinsurance contracts which provide up to $150,000 thousand and $275,000 thousand, respectively, of annual aggregate reinsurance coverage from named storms and earthquakes in the United State, Puerto Rico, the U.S. Virgin Islands and Canada.

Recoveries under these collateralized reinsurance agreements with Kilimanjaro are primarily dependent on estimated industry level insured losses from covered events, as well as, the geographic location of the events.  The estimated industry level of insured losses is obtained from published estimates by an independent recognized authority on insured property losses.  Currently, none of the published insured loss estimates for catastrophe events during the applicable covered periods of the various agreements have exceeded the single event retentions or aggregate retentions under the terms of the agreements that would result in a recovery.

Kilimanjaro has financed the various property catastrophe reinsurance coverages by issuing catastrophe bonds to unrelated, external investors.  On April 24, 2014, Kilimanjaro issued $450,000 thousand of notes (“Series 2014-1 Notes”). The $450,000 thousand of Series 2014-1 Notes were fully redeemed on April 30, 2018 and are no longer outstanding.  On November 18, 2014, Kilimanjaro issued $500,000 thousand of notes (“Series 2014-2 Notes”). The $450,000 thousand of Series 2014-2 Notes were fully redeemed in November 2019 and are no longer outstanding. On December 1, 2015, Kilimanjaro issued $625,000 thousand of notes (“Series 2015-1 Notes).  On April 13, 2017, Kilimanjaro issued $950,000 thousand of notes (“Series 2017-1 Notes) and $300,000 thousand of notes (“Series 2017-2 Notes). On April 30, 2018, Kilimanjaro issued $262,500 thousand of notes (“Series 2018-1 Notes”) and $262,500 thousand of notes (“Series 2018-2 Notes”). On December 12, 2019 Kilimanjaro issued $425,000 thousand of notes (“Series 2019-1 Notes”) and $425,000 thousand of notes (“Series 2019-2 Notes’”). The proceeds from the issuance of the Notes listed above 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. 

24

9.  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. 

				June 30, 2020				December 31, 2019
				Consolidated				Consolidated
			Principal	Balance Sheet		Market		Balance Sheet		Market
(Dollars in thousands)	Date Issued	Date Due	Amounts	Amount		Value		Amount		Value
Senior notes	06/05/2014	06/01/2044	400,000	$	397,134	$	469,804	$	397,074	$	452,848

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				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Interest expense incurred	$	4,868	$	4,868	$	9,736	$	9,736

10.  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. 

June 30, 2020

December 31, 2019

Original

Consolidated

Consolidated

Principal

Maturity Date

Balance

Market

Balance

Market

(Dollars in thousands)

Date Issued

Amount

Scheduled

Final

Sheet Amount

Value

Sheet Amount

Value

Long term subordinated notes

04/26/2007

$

400,000

05/15/2037

05/01/2067

$

223,625

$

197,378

$

236,758

$

233,191

During the fixed rate interest period from May 3, 2007 through May 14, 2017, interest was 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.  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 quarterly for periods from and including May 15, 2017.  The reset quarterly interest rate for May 15, 2020 to August 16, 2020 is 2.78%. 

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. 

The Company repurchased and retired $11,483 thousand and $13,183 thousand of its outstanding long term subordinated notes during the three and six months ended June 30, 2020, respectively.  The Company realized a gain of $2,034 thousand and $2,536 thousand from the repurchase of the long term subordinated notes during the three and six months ended June 30, 2020, respectively.

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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				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Interest expense incurred	$	2,000	$	3,406	$	4,539	$	6,011

11.  FEDERAL HOME LOAN BANK MEMBERSHIP

Effective August 15, 2019, Everest Re became a member of the Federal Home Loan Bank (“FHLB”) organization, which allows Everest Re to borrow up to 10% of its statutory admitted assets.  As of June 30, 2020, Everest Re had admitted assets of approximately $13,435,683 thousand which provides borrowing capacity of up to approximately $1,343,568 thousand.  Through June 30, 2020, Everest Re had no borrowings through the FHLB.

12.  LEASES

Effective January 1, 2019, the Company adopted ASU 2016-02 and ASU 2018-11 which outline new guidance on the accounting for leases.  The Company enters into lease agreements for real estate that is primarily used for office space in the ordinary course of business.  These leases are accounted for as operating leases, whereby lease expense is recognized on a straight-line basis over the term of the lease.  Most leases include an option to extend or renew the lease term.  The exercise of the renewal is at the Company’s discretion.  The operating lease liability includes lease payments related to options to extend or renew the lease term if the Company is reasonably certain of exercise those options.  The Company, in determining the present value of lease payments utilizes either the rate implicit in the lease if that rate is readily determinable or the Company’s incremental secured borrowing rate commensurate with terms of the underlying lease.

Supplemental information related to operating leases is as follows for the periods indicated:

	Three Months Ended				Six Months Ended
(Dollars in thousands)	June 30,				June 30,
	2020		2019		2020		2019
Lease expense incurred:
Operating lease cost	$	7,424	$	4,793	$	14,672	$	9,355

(Dollars in thousands)	At June 30, 2020		At December 31, 2019
Operating lease right of use assets	$	143,986	$	152,978
Operating lease liabilities		155,440		160,387

	Three Months Ended				Six Months Ended
(Dollars in thousands)	June 30,				June 30,
	2020		2019		2020		2019
Operating cash flows from operating leases	$	(4,501)	$	(4,314)	$	(8,858)	$	(8,617)

	At June 30, 2020			At December 31, 2019
Weighted average remaining operating lease term	12.6 years		12.8 years
Weighted average discount rate on operating leases	4.02	%	3.91		%

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Maturities of the existing lease liabilities are expected to occur as follows: 

(Dollars in thousands)
Remainder of 2020	$	9,120
2021		16,181
2022		18,615
2023		18,202
2024		18,208
2025		15,217
Thereafter		116,149
Undiscounted lease payments		211,692
Less:  present value adjustment		56,252
Total operating lease liability	$	155,440

On July 2, 2019, the Company entered into a lease agreement to relocate its corporate offices from Liberty Corner, New Jersey to a corporate complex in Warren, New Jersey.  The new lease, which covers approximately 315,000 square feet of office space, will be effective October 1, 2019 and runs through 2036.  The initial base rent payment of the lease will be approximately $650 thousand per month or $7,800 thousand per year.  The Company expects to relocate the existing operations and employees of the Liberty Corner, New Jersey facility to the new corporate complex during 2021.

13.  SEGMENT REPORTING

The Reinsurance operation writes worldwide property and casualty reinsurance and specialty lines of business, on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies.  Business is written in the United States as well as through branches in Canada and Singapore.  The Insurance operation writes property and casualty insurance directly and through brokers, surplus lines brokers and general agents within the United States.

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. 

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. 

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

	Three Months Ended				Six Months Ended
Reinsurance	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Gross written premiums	$	1,124,895	$	1,014,434	$	2,433,089	$	2,167,545
Net written premiums		992,750		837,913		2,106,984		1,813,912
Premiums earned	$	1,062,833	$	958,222	$	2,069,868	$	1,855,500
Incurred losses and LAE		630,658		581,281		1,313,366		1,134,995
Commission and brokerage		292,286		258,563		553,187		495,528
Other underwriting expenses		26,599		25,360		56,446		49,416
Underwriting gain (loss)	$	113,290	$	93,018	$	146,869	$	175,561

	Three Months Ended				Six Months Ended
Insurance	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Gross written premiums	$	713,352	$	673,603	$	1,380,123	$	1,205,374
Net written premiums		508,801		481,952		1,033,275		898,196
Premiums earned	$	476,127	$	417,401	$	963,097	$	790,577
Incurred losses and LAE		345,174		261,941		691,979		504,323
Commission and brokerage		63,413		58,212		125,616		109,465
Other underwriting expenses		67,532		57,991		138,893		112,317
Underwriting gain (loss)	$	8	$	39,257	$	6,609	$	64,472

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)	2020		2019		2020		2019
Underwriting gain (loss)	$	113,298	$	132,275	$	153,478	$	240,033
Net investment income		35,153		90,709		109,354		175,243
Net realized capital gains (losses)		(479,360)		142,563		(222,493)		277,619
Corporate expense		(3,514)		(2,519)		(7,235)		(4,170)
Interest, fee and bond issue cost amortization expense		(6,922)		(9,684)		(14,382)		(19,512)
Other income (expense)		(5,122)		(5,055)		(9,620)		(5,785)
Income (loss) before taxes	$	(346,467)	$	348,289	$	9,102	$	663,428

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)	2020		2019		2020		2019
Canada gross written premiums	$	71,021	$	47,206	$	134,658	$	86,256

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

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14.  RELATED-PARTY TRANSACTIONS

Parent

Group entered into a $300,000 thousand long term note agreement with Everest Re as of December 17, 2019. The note will pay interest annually at a rate of 1.69% and is scheduled to mature in December, 2028. This transaction is presented as a Note Receivable – Affiliated in the Consolidated Balance Sheet of Holdings. The Company recognized interest income related to this long term note of $1,281 thousand and $0 thousand for the three months ended June 30, 2020 and 2019, respectively and $2,563 thousand and $0 thousand for the six months ended June 30, 2020 and 2019, respectively.

Group entered into a $250,000 thousand long term promissory note agreement with Holdings as of December 31, 2014.  The note was repaid in December 2018.

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
05/22/2020	2,000,000
	32,000,000

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 has reported the 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				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Dividends received on preferred stock of affiliate	$	7,758	$	7,758	$	15,516	$	15,516

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Affiliated Companies

Effective December 31, 2018, Holdings entered into a $300,000 thousand long-term promissory note agreement with Bermuda Re.  The note was repaid in May, 2019. Interest expense of $1,356 thousand and $3,658 thousand was recorded by Holdings for the three and six months ended June 30, 2019, respectively. 

Effective October 1, 2018, Holdings Ireland made a capital contribution of Global Services, an affiliated entity, to Holdings.  Global Services had an equity value of $227,253 thousand at the time of contribution and that value is classified as additional paid in capital in the Company’s consolidated balance sheets.

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)
						Single
		Percent		Assuming		Occurrence		Aggregate
Coverage Period	Ceding Company	Ceded		Company	Type of Business	Limit		Limit
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
01/01/2015-12/31/2016	Everest Re	50.0	%	Bermuda Re	property / casualty business	162,500		325,000
01/01/2017-12/31/2017	Everest Re	60.0	%	Bermuda Re	property / casualty business	219,000		438,000
01/01/2010-12/31/2010	Everest Re- Canadian Branch	60.0	%	Bermuda Re	property business	350,000	(1)	-
01/01/2011-12/31/2011	Everest Re- Canadian Branch	60.0	%	Bermuda Re	property business	350,000	(1)	-
01/01/2012-12/31/2012	Everest Re- Canadian Branch	75.0	%	Bermuda Re	property / casualty business	206,250	(1)	412,500	(1)
01/01/2013-12/31/2013	Everest Re- Canadian Branch	75.0	%	Bermuda Re	property / casualty business	150,000	(1)	412,500	(1)
01/01/2014-12/31/2017	Everest Re- Canadian Branch	75.0	%	Bermuda Re	property / casualty business	262,500	(1)	412,500	(1)
01/01/2012-12/31/2017	Everest Canada	80.0	%	Everest Re-   Canadian Branch	property business	-		-
(1) Amounts shown are Canadian dollars.

Effective January 1, 2018, Everest Re entered into a twelve month whole account aggregate stop loss reinsurance contract (“stop loss agreement”) with Bermuda Re.  The stop loss agreement provides coverage for ultimate net losses on applicable net earned premiums above a retention level, subject to certain other coverage limits and conditions.  The stop loss agreement was most recently renewed effective January 1, 2020. 

In addition, Everest Re entered into a property catastrophe excess of loss reinsurance contract with Bermuda Re, effective January 1, 2019.  The contract provides $100,000 thousand of reinsurance coverage for property catastrophe losses above certain attachment points. This agreement expired on December 31, 2019 and was not renewed.

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

(Dollars in thousands)
Effective	Transferring	Assuming		% of Business or		Covered Period
Date	Company	Company		Amount of Transfer		of Transfer
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
12/31/2017	Everest Re	Bermuda Re	$	970,000		All years

On December 31, 2017, the Company entered into a LPT agreement with Bermuda Re.  The LPT agreement covers subject loss reserves of $2,336,242 thousand for accident years 2017 and prior.  As a result of the LPT agreement, the Company transferred $1,000,000 thousand of cash and fixed maturity securities and transferred $970,000 thousand of loss reserves to Bermuda Re.  As part of the LPT agreement, Bermuda Re will provide an additional $500,000 thousand of adverse development coverage on the subject loss reserves. 

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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				Six Months Ended
Bermuda Re	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Ceded written premiums	$	31,669	$	19,534	$	62,169	$	71,007
Ceded earned premiums		31,813		16,598		62,313		69,122
Ceded losses and LAE		12,208		(3,417)		(9,951)		8,316

	Three Months Ended				Six Months Ended
Everest International	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Ceded written premiums	$	-	$	-	$	-	$	-
Ceded earned premiums		-		-		-		-
Ceded losses and LAE		(7)		(46)		16		(36)

	Three Months Ended				Six Months Ended
Everest Canada	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Assumed written premiums	$	(235)	$	-	$	1	$	-
Assumed earned premiums		(46)		-		(7)		-
Assumed losses and LAE		(948)		2,296		650		695

	Three Months Ended				Six Months Ended
Lloyd's Syndicate 2786	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Assumed written premiums	$	630	$	483	$	(2,401)	$	(8,726)
Assumed earned premiums		639		1,596		(2,183)		(17,231)
Assumed losses and LAE		(1,438)		4,391		(624)		(3,527)

In 2013, Group established Mt. Logan Re, which is a Class 3 insurer based in Bermuda.  Mt. Logan Re then established separate segregated accounts for its business activity, which 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				Six Months Ended
Mt. Logan Re Segregated Accounts	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Ceded written premiums	$	41,864	$	51,289	$	137,214	$	114,512
Ceded earned premiums		60,412		61,812		140,267		106,634
Ceded losses and LAE		36,835		30,159		74,300		64,781
Assumed written premiums		-		-		-		-
Assumed earned premiums		-		-		-		-
Assumed losses and LAE		-		-		-		-

15.  RETIREMENT BENEFITS

The Company maintains both qualified and non-qualified defined benefit pension plans for its U.S. employees employed prior to April 1, 2010.  Generally, the Company computes the benefits based on average earnings over a period prescribed by the plans and credited length of service.  The Company’s non-qualified defined benefit pension plan provided compensating pension benefits for participants whose benefits have been

31

curtailed under the qualified plan due to Internal Revenue Code limitations.  Effective January 1, 2018, participants of the Company’s non-qualified defined benefit pension plan may no longer accrue additional service benefits. 

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

Pension Benefits	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Service cost	$	2,041	$	2,276	$	6,052	$	4,553
Interest cost		2,563		2,930		5,046		5,860
Expected return on plan assets		(5,197)		(5,016)		(10,394)		(10,031)
Amortization of net (income) loss		2,462		1,601		3,675		3,203
Settlement charge		-		104		-		208
Net periodic benefit cost	$	1,869	$	1,895	$	4,379	$	3,793

Other Benefits	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Service cost	$	311	$	286	$	452	$	573
Interest cost		215		295		429		590
Amortization of prior service cost		(176)		(144)		(224)		(289)
Net periodic benefit cost	$	350	$	437	$	657	$	874
(Some amounts may not reconcile due to rounding.)

The service cost component of net periodic benefit costs is included within other underwriting expenses on the consolidated statement of operations and comprehensive income (loss).  In accordance with ASU 2017-07, other staff compensation costs are also primarily recorded within this line item. 

The Company did not make any contributions to the qualified pension benefit plan for the three and six months ended June 30, 2020 and 2019, respectively.

16.  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. 

The Company generally applies the estimated annual effective tax rate approach for calculating its tax provision for interim periods as prescribed by ASC 740-270, Interim Reporting.  Under the estimated annual effective tax rate approach, the estimated annual effective tax rate is applied to the interim year-to-date pre-tax income/loss to determine the income tax expense or benefit for the year-to-date period.  The tax expense or benefit for the quarter represents the difference between the year-to-date 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/loss and effective tax rate..

17.  SUBSEQUENT EVENTS

The Company has evaluated known recognized and non-recognized subsequent events.  In late July and early August 2020, Hurricane Isaias impacted the United States and the Caribbean. Also, on August 4, 2020, an explosion occurred in Beirut, Lebanon which impacted a port and surrounding area. Due to the recentness of these events, the Company is unable to estimate the amount of losses at this time. However, the Company anticipates that the losses from these events will adversely impact third quarter 2020 financial statements. 

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18.   REVISIONS TO FINANCIAL STATEMENTS

In preparing third quarter 2019 financial statements, the Company identified errors in the handling of foreign exchange related to premium funds held from reinsureds.  Although management determined that the impact of the foreign exchange differences were not material to prior period financial statements, the impact of recording the cumulative difference would have significantly impacted results within the third quarter 2019.  As a result, prior period balances have been revised in the applicable financial statements and corresponding footnotes to correct the foreign exchange adjustments.

Management assessed the materiality of this change within prior period financial statements based upon SEC Staff Accounting Bulletin Number 99, Materiality, which is since codified in Accounting Standards Codification ("ASC") 250, Accounting Changes and Error Corrections. The prior period comparative financial statements that are presented herein have been revised.

The following tables present line items for prior period financial statements that have been affected by the revision. For these line items, the tables detail the amounts as previously reported, the impact upon those line items due to the revision, and the amounts as currently revised within the financial statements.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE		Three Months Ended June 30, 2019						Six Months Ended June 30, 2019
INCOME (LOSS):		As Previously		Impact of				As Previously		Impact of
		Reported		Revisions		As Revised		Reported		Revisions		As Revised
(Dollars in thousands)
Revenues:
Other income (expense)		(3,812)		(1,243)		(5,055)		(5,026)		(759)		(5,785)
Total revenues	$	1,605,083	$	(1,243)	$	1,603,840	$	3,093,913	$	(759)	$	3,093,154
INCOME (LOSS) BEFORE TAXES	$	349,532	$	(1,243)	$	348,289	$	664,187	$	(759)	$	663,428
Income tax expense (benefit)		67,628		(261)		67,367		131,057		(159)		130,898
NET INCOME (LOSS)	$	281,904	$	(982)	$	280,922	$	533,130	$	(600)	$	532,530
COMPREHENSIVE INCOME (LOSS)	$	349,533	$	(982)	$	348,551	$	698,907	$	(600)	$	698,307

CONSOLIDATED STATEMENTS OF	Six Months Ended June 30, 2019
CHANGES IN STOCKHOLDER'S EQUITY	As Previously		Impact of
	Reported		Revisions		As Revised
(Dollars in thousands)
RETAINED EARNINGS:
Balance, January 1	$	4,070,604	$	(7,908)	$	4,062,696
Net income (loss)		251,226		382		251,608
Balance, March 31		4,321,830		(7,524)		4,314,306
Net income (loss)		281,904		(982)		280,922
Balance, June 30		4,603,734		(8,507)		4,595,227
TOTAL STOCKHOLDER'S EQUITY, June 30	$	5,743,746	$	(8,507)	$	5,735,239

33

CONSOLIDATED STATEMENTS OF CASH FLOWS	Six Months Ended June 30, 2019
	As Previously		Impact of
	Reported		Revisions		As Revised
(Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	533,130	$	(600)	$	532,530
Decrease (increase) in funds held by reinsureds, net		(14,688)		759		(13,929)
Decrease (increase) in income taxes		214,830		(159)		214,671

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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. 

The Company competes in the global reinsurance and insurance markets with numerous global competitors. The Company’s 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 historically have been competitive.  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, provided capital markets with access to insurance and reinsurance risk exposure.  The capital markets demand for these products was being primarily driven by a low interest environment and the desire to achieve greater risk diversification and potentially higher returns on their investments.  This increased competition was generally having a negative impact on rates, terms and conditions; however, the impact varies widely by market and coverage.

The industry continues to deal with the impacts of a global pandemic, COVID-19.    Globally, many countries mandated that their citizens remain at home and many non-essential businesses have continued to be physically closed.  We closed our physical offices; however, we activated our operational resiliency plan across our global footprint and all of our critical operations are functioning effectively from remote locations.  We continue to service and meet the needs of our clients while ensuring the safety and health of our employees and customers.

The pandemic has caused significant volatility in the global financial markets.  Interest rates plummeted, credit spreads widened and the equity markets lost value.  We saw our fixed maturity and equity portfolios decline in value resulting in realized and unrealized investment losses in our March 31, 2020 financial statements.  However, the financial markets rebounded during the second quarter and we recognized after-tax unrealized gains of $247.1 million in the period. Nevertheless, the lack of business activity may lead to an increase in bankruptcies and corresponding credit losses. Our other invested assets are comprised primarily of limited partnership investments.  The change in limited partnership values are generally recorded on a quarter lag. As expected, the change in limited partnership values had a negative impact on our second quarter results, reducing net investment income by $40.5 million.

There will also be a negative impact on future industry underwriting results. With the closing of non-essential businesses, there has been a significant decline in business activity.  To the extent that premiums are based on business activity, there will be a decline in premium volume.  Incurred losses from the pandemic will be impacted by the duration of the event and will vary by line of business and geographical location.  For the quarter ended June 30, 2020, our underwriting results include $38.0 million of estimated losses related to the pandemic and $73.7 million for the six months ended June 30, 2020.  We anticipate this Pandemic could have

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a meaningful impact on our revenue, as well as net and operating income in future quarters as a result of reinsurance and insurance claims due to the pandemic and resulting macro-economic market conditions.

Many regulators have issued moratoriums on the cancellation of policies for the non-payment of premiums and also on non-renewals. We are complying with the various regulatory requests for accommodations to policyholders during this difficult period.  The moratoriums combined with the forced closure of businesses may lead to an increase in uncollectible premium expense.

Prior to the pandemic, there was a growing industry consensus that there was some firming of (re)insurance rates for the areas impacted by the recent catastrophes.  Rates also appeared to be firming in some of the casualty lines of business, particularly in the casualty lines that had seen significant losses such as excess casualty and directors’ and officers’ liability.  Other casualty lines were experiencing modest rate increase, while some lines such as workers’ compensation were experiencing softer market conditions. It is too early to tell what will be the impact on pricing conditions but it is likely to change depending on the line of business and geography.

While we are unable to predict the full impact the pandemic will have on the insurance industry as it continues to have a negative impact on the global economy, we are well positioned to continue to service our clients.  Our capital position remains a source of strength, with high quality invested assets, significant liquidity, low financial leverage, and a low operating expense ratio. Our diversified global platform with its broad mix of products, distribution and geography is resilient.

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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	Six Months Ended				Percentage
	June 30,				Increase/	June 30,				Increase/
(Dollars in millions)	2020		2019		(Decrease)	2020		2019		(Decrease)
Gross written premiums	$	1,838.2	$	1,688.0	8.9%	$	3,813.2	$	3,372.9	13.1%
Net written premiums		1,501.6		1,319.9	13.8%		3,140.3		2,712.1	15.8%
REVENUES:
Premiums earned	$	1,539.0	$	1,375.6	11.9%		3,033.0	$	2,646.1	14.6%
Net investment income		35.2		90.7	-61.2%	$	109.4		175.2	-37.6%
Net realized capital gains (losses)		(479.4)		142.6	NM		(222.5)		277.6	-180.1%
Other income (expense)		(5.1)		(5.1)	41.5%		(9.6)		(5.8)	110.1%
Total revenues		1,089.6		1,603.8	-32.1%		2,910.2		3,093.2	-5.9%
CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses		975.8		843.2	15.7%		2,005.3		1,639.3	22.3%
Commission, brokerage, taxes and fees		355.7		316.8	12.3%		678.8		605.0	12.2%
Other underwriting expenses		94.1		83.3	12.9%		195.3		161.7	20.8%
Corporate expense		3.5		2.5	39.5%		7.2		4.2	73.5%
Interest, fee and bond issue cost amortization expense		6.9		9.7	-28.5%		14.4		19.5	-26.3%
Total claims and expenses		1,436.1		1,255.5	14.4%		2,901.1		2,429.7	19.4%
INCOME (LOSS) BEFORE TAXES		(346.5)		348.3	-199.5%		9.1		663.4	-98.6%
Income tax expense (benefit)		(75.9)		67.4	-212.6%		(37.0)		130.9	-128.2%
NET INCOME (LOSS)	$	(270.6)	$	280.9	-196.3%		46.1	$	532.5	-91.4%
RATIOS:					Point Change					Point Change
Loss ratio		63.4%		61.3%	2.1	$	66.1%		62.0%	4.1
Commission and brokerage ratio		23.1%		23.0%	0.1		22.4%		22.9%	(0.5)
Other underwriting expense ratio		6.1%		6.1%	-		6.4%		6.1%	0.3
Combined ratio		92.6%		90.4%	2.2		94.9%		90.9%	4.0
	At		At		Percentage
	June 30,		December 31,		Increase/
(Dollars in millions)	2020		2019		(Decrease)
Balance sheet data:
Total investments and cash	$	12,567.4	$	11,956.3	5.1%
Total assets		20,281.1		19,706.2	2.9%
Loss and loss adjustment expense reserves		10,383.3		10,209.5	1.7%
Total debt		620.8		633.8	-2.1%
Total liabilities		14,297.5		13,848.8	3.2%
Stockholder's equity		5,983.6		5,857.4	2.2%
(Some amounts may not reconcile due to rounding)
(NM, not meaningful)

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Revenues.

Premiums.  Gross written premiums increased by 8.9% to $1,838.2 million for the three months ended June 30, 2020, compared to $1,688.0 million for the three months ended June 30, 2019, reflecting a $110.5 million, or 10.9%, increase in our reinsurance business and a $39.7 million, or 5.9%, increase in our insurance business. The increase in reinsurance premiums was mainly due to the increase in treaty casualty writings, treaty property business and facultative business. The rise in insurance premiums was primarily due to increases in many lines of business, including property, casualty and specialty lines. Gross written premiums increased by 13.1% to $3,813.2 million for the six months ended June 30, 2020, compared to $3,372.9 million for the six months ended June 30, 2019, reflecting a $265.5 million, or 12.3%, increase in our reinsurance business and a $174.7 million, or 14.5%, increase in our insurance business.  The increase in reinsurance premiums was mainly due to increases in treaty casualty writings and property business. The rise in insurance premiums was primarily due to increases in many lines of business, including property, casualty and accident and health. 

Net written premiums increased by 13.8% to $1,501.6 million for the three months ended June 30, 2020, compared to $1,319.9 million for the three months ended June 30, 2019 and increased by 15.8% to $3,140.3 million for the six months ended June 30, 2020, compared to $2,712.1 million for the six months ended June 30, 2019. The differences between the changes in gross written premiums compared to the changes in net written premiums are primarily due to varying utilization of reinsurance. Premiums earned increased by 11.9% to $1,539.0 million for the three months ended June 30, 2020, compared to $1,375.6 million for the three months ended June 30, 2019 and increased by 14.6% to $3,033.0 million for the six months ended June 30, 2020, compared to $2,646.1 million for the six months ended June 30, 2019. 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 decreased 61.2% to $35.2 million for the three months ended June 30, 2020 compared with net investment income of $90.7 million for the three months ended June 30, 2019. Net investment income decreased 37.6% to $109.4 million for the six months ended June 30, 2020 compared with net investment income of $175.2 million for the six months ended June 30, 2019. Net pre-tax investment income as a percentage of average invested assets was 1.2% and 3.3% for the three months ended June 30, 2020 and 2019, respectively and was 1.9% and 3.2% for the six months ended June 30, 2020 and June 30, 2019, respectively. The decrease in income and yield was primarily the result of losses from our limited partnerships, partially offset by higher income from our growing fixed maturity portfolio.

Net Realized Capital Gains (Losses).  Net realized capital losses were $479.4 million and net realized capital gains were $142.6 million for the three months ended June 30, 2020 and 2019, respectively. As discussed earlier, the COVID-19 pandemic caused significant volatility in the global financial markets. The net realized capital losses of $479.4 million for the three months ended June 30, 2020, were comprised of $491.2 million of losses from fair value re-measurements, resulting primarily from increases in equity security valuations which rebounded from declines in the first quarter of 2020, and $7.8 million of net allowances for credit losses partially offset by $19.6 million of gains from sales of investments. The net realized capital gains of $142.6 million for the three months ended June 30, 2019, were comprised of $150.7  million of gains from fair value re-measurements, partially offset by $4.9 million of other-than-temporary impairments and $3.3million of net losses from sales of investments.

Net realized capital losses were $222.5 million and net realized capital gains were $277.6 million for the six months ended June 30, 2020 and 2019, respectively.  The net realized capital losses of $222.5 million for the six months ended June 30, 2020 were comprised of $171.5 million of losses from fair value re-measurements, $31.1 million of losses from sales of investments and $19.9 million of net allowances for credit losses. The net realized capital gains of $277.6 million for the six months ended June 30, 2019 were comprised of $279.2 million of gains from fair value re-measurements and $5.6million of net gains from sales of investments, partially offset by $7.2 million of other-than-temporary impairments.

Other Income (Expense).  We recorded other expense of $5.1 million for both the three months ended June 30, 2020 and 2019. We recorded other expense of $9.6 million and $5.8 million for the six months ended June

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30, 2020 and 2019, respectively. The change was primarily the result of fluctuations in foreign currency exchange rates. 

Claims and Expenses.

Incurred Losses and Loss Adjustment Expenses.  The following table presents our incurred losses and loss adjustment expenses (“LAE”) for the periods indicated. 

	Three Months Ended June 30,
	Current		Ratio %/		Prior		Ratio %/		Total		Ratio %/
(Dollars in millions)	Year		Pt Change		Years		Pt Change		Incurred		Pt Change
2020
Attritional	$	965.9	62.8%		$	0.2	0.0%		$	966.1	62.8%
Catastrophes		14.7	1.0%			(4.9)	-0.3%			9.8	0.6%
Total	$	980.5	63.7%		$	(4.7)	-0.3%		$	975.8	63.4%
2019
Attritional	$	826.5	60.1%		$	(13.8)	-1.0%		$	812.7	59.1%
Catastrophes		(0.1)	0.0%			30.6	2.2%			30.5	2.2%
Total	$	826.4	60.1%		$	16.8	1.2%		$	843.2	61.3%
Variance 2020/2019
Attritional	$	139.4	2.7	pts	$	14.0	1.0	pts	$	153.4	3.7	pts
Catastrophes		14.8	1.0	pts		(35.5)	(2.5)	pts		(20.7)	(1.6)	pts
Total	$	154.1	3.7	pts	$	(21.5)	(1.5)	pts	$	132.6	2.1	pts

	Six Months Ended June 30,
	Current		Ratio %/		Prior		Ratio %/		Total		Ratio %/
(Dollars in millions)	Year		Pt Change		Years		Pt Change		Incurred		Pt Change
2020
Attritional	$	1,962.3	64.7%		$	(1.0)	0.0%		$	1,961.4	64.7%
Catastrophes		44.7	1.5%			(0.7)	0.0%			44.0	1.4%
Total	$	2,007.0	66.2%		$	(1.6)	-0.1%		$	2,005.3	66.1%
2019
Attritional	$	1,590.4	60.1%		$	(13.8)	-0.5%		$	1,576.5	59.6%
Catastrophes		24.9	0.9%			37.9	1.4%			62.8	2.4%
Total	$	1,615.3	61.0%		$	24.0	0.9%		$	1,639.3	62.0%
Variance 2020/2019
Attritional	$	371.9	4.6	pts	$	12.8	0.5	pts	$	384.9	5.1	pts
Catastrophes		19.8	0.6	pts		(38.6)	(1.4)	pts		(18.8)	(1.0)	pts
Total	$	391.7	5.2	pts	$	(25.7)	(0.9)	pts	$	366.0	4.1	pts
(Some amounts may not reconcile due to rounding.)

Incurred losses and LAE increased by 15.7% to $975.8 million for the three months ended June 30, 2020 compared to $843.2 million for the three months ended June 30, 2019, primarily due to an increase of $139.4 million in current year attritional losses, related primarily to $38.0 million of losses from the COVID-19 pandemic and the impact of the increase in premiums earned. The current year catastrophe losses of $14.7 million for the three months ended June 30, 2020 related to the U.S. civil unrest ($15.0 million) and the Nashville tornadoes ($2.8 million), partially offset by a reduction in the loss estimate for the 2020 Australia fires ($3.1 million). There were no current year catastrophe losses for the three months ended June 30, 2019. 

Incurred losses and LAE increased by 22.3% to $2,005.3 million for the six months ended June 30, 2020 compared to $1,639.3 million for the six months ended June 30, 2019, primarily due to an increase of $371.9 million in current year attritional losses, related primarily to $73.7 million of losses from the COVID-19 pandemic and the impact of the increase in premiums earned. The current year catastrophe losses of $44.7 million for the six months ended June 30, 2020 related to the U.S. civil unrest ($15.0 million), the Nashville

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tornadoes ($12.8 million), Australia East Coast storms ($10.0 million) and the Australia fires ($6.8 million). The current year catastrophe losses of $24.9 million for the six months ended June 30, 2019 are primarily due to Townsville monsoon in Australia.

Commission, Brokerage, Taxes and Fees.  Commission, brokerage, taxes and fees increased to $355.7 million for the three months ended June 30, 2020 compared to $316.8 million for the three months ended June 30, 2019. Commission, brokerage, taxes and fees increased to $678.8 million for the six months ended June 30, 2020 compared to $605.0 million  for the six months ended June 30, 2019.  The increases were mainly due to the impact of the increases in premiums earned and changes in affiliated reinsurance agreements.

Other Underwriting Expenses. Other underwriting expenses increased to $94.1 million for the three months ended June 30, 2020 compared to $83.3 million for the three months ended June 30, 2019. Other underwriting expenses increased to $195.3 million for the six months ended June 30, 2020 compared to $161.7 million for the six months ended June 30, 2019. These increases were mainly due to changes in affiliated reinsurance agreements, impact of increases in premium earned and costs incurred to support the expansion of the insurance business. 

Corporate Expenses.Corporate expenses, which are general operating expenses that are not allocated to segments, have increased to $3.5 million from $2.5 million for the three months ended June 30, 2020 and 2019, respectively, and increased to $7.2 million from $4.2 million for the six months ended June 30, 2020 and 2019, respectively. The increases were mainly due to higher incentive compensation costs.

Interest, Fees and Bond Issue Cost Amortization Expense.  Interest, fees and other bond amortization expense was $6.9 million and $9.7million for the three months ended June 30, 2020 and 2019, respectively. Interest, fees and other bond amortization expense was $14.4 million and $19.5 million for the six months ended June 30, 2020 and 2019, respectively. The decreases in expense were primarily due to interest expense on the $300.0 million affiliated loan agreement with Bermuda Re in 2019 and the movement in the floating interest rate related to the long term subordinated notes, which is reset quarterly per the note agreement. The floating rate was 2.78% as of June 30, 2020.

Income Tax Expense (Benefit).  We had an income tax benefit of $75.9 million and $37.0 million for the three and six months ended June 30, 2020, respectively. We had an income tax expense of $67.4 million and $130.9 million for the three and six months ended June 30, 2019, respectively. Income tax benefit or expense is primarily a function of the geographic location of the Company’s pre-tax income and the statutory tax rates in those jurisdictions.  The effective tax rate (“ETR”) is primarily affected by tax-exempt investment income, foreign tax credits and dividends. Variations in the ETR 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 change in income tax expense (benefit) for the three and six months ended June 30, 2020 compared to the three and six months ended June 30, 2019 was primarily due to estimated incurred losses from the COVID-19 pandemic and the impact from the Coronavirus Aid, Relief and Economic Securities Act (“the CARES Act”).

The CARES Act was passed by Congress and signed into law by the President on March 27, 2020 in response to the COVID-19 pandemic.  Among the provisions of the CARES Act was a special tax provision which allows companies to elect to carryback five years net operating losses incurred in the 2018, 2019 and/or 2020 tax years.  The Tax Cuts and Jobs Act of 2017 had eliminated net operating loss carrybacks for most companies. The Company determined that the special 5 year loss carryback tax provision provided a tax benefit of $31.0 million which it recorded in the quarter ended March 31, 2020.

Net Income (Loss).

Our net loss was $270.6 million and net income was $280.9 million, for the three months ended June 30, 2020 and 2019 respectively. Our net income was $46.1 million and $532.5 million, for the six months ended June 30, 2020 and 2019 respectively. The changes were primarily driven by the financial component fluctuations explained above. 

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Ratios.

Our combined ratio increased by 2.2 points to 92.6% for the three months ended June 30, 2020 compared to 90.4% for the three months ended June 30, 2019, and increased by 4.0 points to 94.9% for the six months ended June 30, 2020 compared to 90.9% for the six months ended June 30, 2019.  The loss ratio component increased by 2.1 points and 4.1 points in for the three and six months ended June 30, 2020, respectively, over the same period last year mainly due to higher attritional losses due to COVID-19. The commission and brokerage ratio component increased slightly to 23.1% for the three months ended June 30, 2020 compared to 23.0% for the three months ended June 30, 2019, and decreased to 22.4% for the six months ended June 30, 2020 compared to 22.9% for the six months ended June 30, 2019, reflecting changes in affiliated reinsurance agreements and changes in the mix of business.  The other underwriting expense ratio remained flat at 6.1% for the three months ended June 30, 2020 and 2019 and increased slightly to 6.4% for the six months ended June 30, 2020 from 6.1% for the six months ended June 30, 2019.  The increase for the six month period was mainly due to the impact of changes in affiliated reinsurance contracts.

Stockholder's Equity.

Stockholder’s equity increased by $126.2 million to $5,983.6 million at June 30, 2020 from $5,857.4 million at December 31, 2019, principally as a result of $97.5 million of net unrealized depreciation on investments, net of tax, $46.1 million of net income, $2.7 million of net benefit plan obligation adjustments and $0.9 million of cumulative adjustment from the adoption of ASU-2016-13, partially offset by $21.2 million of net foreign currency translation adjustments.

Consolidated Investment Results

Net Investment Income. 

Net investment income decreased by 61.2% to $35.2 million for the three months ended June 30, 2020 compared to $90.7 million for the three months ended June 30, 2019. Net investment income decreased by 37.6% to $109.4 million for the six months ended June 30, 2020 compared to $175.2 million for the six months ended June 30, 2019. The decreases in 2020 were primarily due to losses from our limited partnerships, partially offset by higher income from our growing fixed maturity portfolio.

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in millions)	2020		2019		2020		2019
Fixed maturities	$	74.9	$	65.3	$	149.0	$	132.4
Equity securities		2.0		2.4		3.6		3.8
Short-term investments and cash		0.5		3.2		2.1		5.9
Other invested assets
Limited partnerships		(40.5)		15.1		(33.5)		23.2
Dividends from preferred shares of affiliate		7.7		7.7		15.5		15.5
Other		(2.9)		3.3		(16.0)		6.3
Gross investment income before adjustments		41.7		97.1		120.7		187.1
Funds held interest income (expense)		1.0		1.4		4.2		4.3
Interest income from Parent		1.3		-		2.6		-
Gross investment income		44.0		98.5		127.5		191.4
Investment expenses		8.8		(7.8)		18.1		(16.1)
Net investment income	$	35.2	$	90.7	$	109.4	$	175.2
(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
	June 30,	December 31,
	2020	2019
Imbedded pre-tax yield of cash and invested assets	3.5%	3.5%
Imbedded after-tax yield of cash and invested assets	2.8%	2.8%

	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2020	2019	2020	2019
Annualized pre-tax yield on average cash and invested assets	1.2%	3.3%	1.9%	3.2%
Annualized after-tax yield on average cash and invested assets	1.0%	2.7%	1.5%	2.6%

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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 June 30,						Six Months Ended June 30,
(Dollars in millions)	2020		2019		Variance		2020		2019		Variance
Gains (losses) from sales:
Fixed maturity securities, market value
Gains	$	8.8	$	2.8	$	6.0	$	10.6	$	10.9	$	(0.3)
Losses		(6.8)		(5.0)		(1.8)		(29.6)		(9.7)		(19.9)
Total		2.0		(2.2)		4.2		(19.0)		1.2		(20.2)
Fixed maturity securities, fair value
Gains		-		0.4		(0.4)		-		0.4		(0.4)
Losses		-		-		-		-		-		-
Total		-		0.4		(0.4)		-		0.4		(0.4)
Equity securities, fair value
Gains		18.2		2.5		15.7		20.8		8.2		12.6
Losses		(1.9)		(3.9)		2.0		(32.1)		(4.5)		(27.6)
Total		16.3		(1.3)		17.6		(11.3)		3.7		(15.0)
Other invested assets
Gains		1.6		-		1.6		4.6		0.3		4.3
Losses		(0.2)		(0.1)		(0.1)		(5.6)		(0.1)		(5.5)
Total		1.4		(0.1)		1.5		(1.0)		0.2		(1.2)
Short Term Investments:
Gains		0.1		0.1		-		0.2		0.1		0.1
Losses		-		-		-		-		-		-
Total		0.1		0.1		-		0.2		0.1		0.1
Total net realized gains (losses) from sales
Gains		28.7		5.7		23.0		36.2		19.9		16.3
Losses		(8.9)		(9.0)		0.1		(67.3)		(14.3)		(53.0)
Total		19.6		(3.3)		22.9		(31.1)		5.6		(36.7)
Allowances for credit losses:		(7.8)		-		(7.8)		(19.9)		-		(19.9)
Other than temporary impairments:		-		(4.9)		4.9		-		(7.2)		7.2
Gains (losses) from fair value adjustments:
Fixed maturities, fair value		(0.3)		-		(0.3)		(1.4)		-		(1.4)
Equity securities, fair value		148.2		25.8		122.4		26.5		103.6		(77.1)
Other invested assets, fair value		(639.1)		125.0		(764.1)		(196.6)		175.6		(372.2)
Total		(491.2)		150.8		(642.0)		(171.5)		279.2		(450.7)
Total net realized gains (losses)	$	(479.4)	$	142.6	$	(622.0)	$	(222.5)	$	277.6	$	(500.1)
(Some amounts may not reconcile due to rounding.)

Net Realized Capital Gains (Losses). Net realized capital losses were $479.4 million and net realized capital gains were $142.6 million for the three months ended June 30, 2020 and 2019, respectively. As discussed earlier, the COVID-19 pandemic caused significant volatility in the global financial markets. The net realized capital losses of $479.4 million for the three months ended June 30, 2020, were comprised of $491.2 million of losses from fair value re-measurements, resulting primarily from increases in equity security valuations which rebounded from declines in the first quarter of 2020, and $7.8 million of net allowances for credit losses partially offset by $19.6 million of gains from sales of investments. The net realized capital gains of $142.6 million for the three months ended June 30, 2019, were comprised of $150.7  million of gains from fair value re-measurements, partially offset by $4.9 million of other-than-temporary impairments and $3.3million of net losses from sales of investments.

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Net realized capital losses were $222.5 million and net realized capital gains were $277.6 million for the six months ended June 30, 2020 and 2019, respectively. The net realized capital losses of $222.5 million for the six months ended June 30, 2020, were comprised of $171.5 million of losses from fair value re-measurements, $31.1 million of losses from sales of investments and $19.9 million of net allowances for credit losses. The net realized capital gains of $277.6 million for the six months ended June 30, 2019, were comprised of $279.2  million of gains from fair value re-measurements and $5.6million of net gains from sales of investments, partially offset by $7.2 million of other-than-temporary impairments.

Segment Results.

The Reinsurance operation writes worldwide property and casualty reinsurance and specialty lines of business, on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies.  Business is written in the United States as well as through branches in Canada and Singapore.  The Insurance operation writes property and casualty insurance directly and through brokers, surplus lines brokers and general agents within the United States.

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. 

The following discusses the underwriting results for each of our segments for the periods indicated: 

Reinsurance.

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

	Three Months Ended June 30,							Six Months Ended June 30,
(Dollars in millions)	2020		2019		Variance		% Change	2020		2019		Variance		% Change
Gross written premiums	$	1,124.9	$	1,014.4	$	110.5	10.9%	$	2,433.1	$	2,167.5	$	265.6	12.3%
Net written premiums		992.8		837.9		154.9	18.5%		2,107.0		1,813.9		293.1	16.2%
Premiums earned	$	1,062.8	$	958.2	$	104.6	10.9%	$	2,069.9	$	1,855.5	$	214.4	11.6%
Incurred losses and LAE		630.7		581.3		49.4	8.5%		1,313.4		1,135.0		178.4	15.7%
Commission and brokerage		292.3		258.6		33.7	13.0%		553.2		495.5		57.7	11.6%
Other underwriting expenses		26.6		25.4		1.2	4.7%		56.4		49.4		7.0	14.2%
Underwriting gain (loss)	$	113.3	$	93.0	$	20.4	21.9%	$	146.9	$	175.6	$	(28.7)	-16.3%
							Point Chg							Point Chg
Loss ratio		59.4%		60.7%			(1.3)		63.5%		61.2%			2.3
Commission and brokerage ratio		27.5%		27.0%			0.5		26.7%		26.7%			-
Other underwriting ratio		2.4%		2.7%			(0.3)		2.7%		2.7%			-
Combined ratio		89.3%		90.4%			(1.1)		92.9%		90.6%			2.3
(Some amounts may not reconcile due to rounding.)
(NM, not meaningful)

Premiums.Gross written premiums increased by 10.9% to $1,124.9 million for the three months ended June 30, 2020 from $1,014.4 million for the three months ended June 30, 2019 primarily due to increases in casualty writings and treaty property business. Net written premiums increased by 18.5% to $992.8 million for the three months ended June 30, 2020 compared to $837.9 million for the three months ended June 30,

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2019. 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. Premiums earned increased 10.9% to $1,062.8 million for the three months ended June 30, 2020 compared to $958.2 million for the three months ended June 30, 2019. 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 12.3% to $2,433.1 million for the six months ended June 30, 2020 from $2,167.5 million for the six months ended June 30, 2019 primarily due to increases in casualty writings and treaty property business. Net written premiums increased by 16.2% to $2,107.0 million for the six months ended June 30, 2020 compared to $1,813.9 million for the six months ended June 30, 2019. 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. Premiums earned increased 11.6% to $2,069.9 million for the six months ended June 30, 2020 compared to $1,855.5 million for the six months ended June 30, 2019. 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 Reinsurance segment for the periods indicated.

	Three Months Ended June 30,
	Current		Ratio %/		Prior		Ratio %/		Total		Ratio %/
(Dollars in millions)	Year		Pt Change		Years		Pt Change		Incurred		Pt Change
2020
Attritional	$	635.4	59.8%		$	-	0.0%		$	635.4	59.8%
Catastrophes		(0.4)	0.0%			(4.4)	-0.4%			(4.7)	-0.4%
Total segment	$	635.1	59.8%		$	(4.4)	-0.4%		$	630.7	59.4%
2019
Attritional	$	547.4	57.1%		$	4.9	0.5%		$	552.3	57.6%
Catastrophes		(0.1)	0.0%			29.1	3.0%			29.0	3.0%
Total segment	$	547.3	57.1%		$	34.0	3.5%		$	581.3	60.7%
Variance 2020/2019
Attritional	$	88.0	2.7	pts	$	(4.9)	(0.5)	pts	$	83.1	2.2	pts
Catastrophes		(0.3)	-	pts		(33.5)	(3.4)	pts		(33.7)	(3.4)	pts
Total segment	$	87.8	2.7	pts	$	(38.4)	(3.9)	pts	$	49.4	(1.3)	pts

	Six Months Ended June 30,
	Current		Ratio %/		Prior		Ratio %/		Total		Ratio %/
(Dollars in millions)	Year		Pt Change		Years		Pt Change		Incurred		Pt Change
2020
Attritional	$	1,290.1	62.3%		$	(0.6)	0.0%		$	1,289.4	62.3%
Catastrophes		24.2	1.2%			(0.2)	0.0%			23.9	1.2%
Total segment	$	1,314.2	63.5%		$	(0.9)	0.0%		$	1,313.4	63.5%
2019
Attritional	$	1,069.5	57.6%		$	4.9	0.3%		$	1,074.4	57.9%
Catastrophes		24.9	1.3%			35.8	1.9%			60.7	3.2%
Total segment	$	1,094.4	58.9%		$	40.7	2.2%		$	1,135.0	61.2%
Variance 2020/2019
Attritional	$	220.6	4.7	pts	$	(5.5)	(0.3)	pts	$	215.0	4.4	pts
Catastrophes		(0.8)	(0.1)	pts		(36.0)	(1.9)	pts		(36.8)	(2.0)	pts
Total segment	$	219.8	4.6	pts	$	(41.6)	(2.2)	pts	$	178.3	2.3	pts
(Some amounts may not reconcile due to rounding.)

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Incurred losses increased by 8.5% to $630.7 million for the three months ended June 30, 2020 compared to $581.3 million for the three months ended June 30, 2019.  The increase was primarily due to an increase of $88.0 million in current year attritional losses, primarily related to $25.4 million of losses from the COVID-19 pandemic and the impact of the increase in premiums earned. The ($0.4) million of current year catastrophe losses for the three months ended June 30, 2020 related to the Nashville tornadoes ($2.8 million) which was more than offset by a reduction in the loss estimate for the 2020 Australia fires. There were no current year catastrophe losses for the three months ended June 30, 2019.

Incurred losses increased by 15.7% to $1,313.4 million for the six months ended June 30, 2020 compared to $1,135.0 million for the six months ended June 30, 2019.  The increase was primarily due to an increase of $220.6 million in current year attritional losses, primarily related to $45.4 million of losses from the COVID-19 pandemic and the impact of the increase in premiums earned. The current year catastrophe losses of $24.2 million for the six months ended June 30, 2020 primarily related to Australia East Coast storms ($10.0 million), Nashville tornadoes ($7.3 million) and the 2020 Australia fires ($6.9 million). The $24.9 million of current year catastrophe losses for the six months ended June 30, 2019 related to the Townsville monsoon in Australia ($24.9 million).

Segment Expenses.  Commission and brokerage increased to $292.3 million for the three months ended June 30, 2020 compared to $258.6 million for the three months ended June 30, 2019. Commission and brokerage increased to $553.2 million for the six months ended June 30, 2020 compared to $495.5 million for the six months ended June 30, 2019. The increases were mainly due to the impact of the increase in premiums earned. Segment other underwriting expenses increased to $26.6 million for the three months ended June 30, 2020 from $25.4 million for the three months ended June 30, 2019. Segment other underwriting expenses decreased to $56.4 million for the six months ended June 30, 2020 from $49.4 million for the six months ended June 30, 2019. These were mainly due to the impact of the increase in premiums earned and changes in affiliated reinsurance agreements.

Insurance.

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

	Three Months Ended June 30,							Six Months Ended June 30,
(Dollars in millions)	2020		2019		Variance		% Change	2020		2019		Variance		% Change
Gross written premiums	$	713.4	$	673.6	$	39.8	5.9%	$	1,380.1	$	1,205.4	$	174.7	14.5%
Net written premiums		508.8		482.0		26.8	5.6%		1,033.3		898.2		135.1	15.0%
Premiums earned	$	476.1	$	417.4	$	58.7	14.1%	$	963.1	$	790.6	$	172.5	21.8%
Incurred losses and LAE		345.2		261.9		83.3	31.8%		692.0		504.3		187.7	37.2%
Commission and brokerage		63.4		58.2		5.2	8.9%		125.6		109.5		16.1	14.7%
Other underwriting expenses		67.5		58.0		9.5	16.4%		138.9		112.3		26.6	23.7%
Underwriting gain (loss)	$	-	$	39.3	$	(39.3)	-100.0%	$	6.6	$	64.5	$	(57.9)	-89.8%
							Point Chg							Point Chg
Loss ratio		72.5%		62.8%			9.7		71.8%		63.8%			8.0
Commission and brokerage ratio		13.3%		13.9%			(0.6)		13.0%		13.8%			(0.8)
Other underwriting ratio		14.2%		13.9%			0.3		14.4%		14.2%			0.2
Combined ratio		100.0%		90.6%			9.4		99.3%		91.8%			7.4
(Some amounts may not reconcile due to rounding.)
(NM, not meaningful)

Premiums.Gross written premiums increased by 5.9% to $713.4 million for the three months ended June 30, 2020 compared to $673.6 million for the three months ended June 30, 2019.  This increase was related to most lines of business including casualty, property and specialty lines.  Net written premiums increased by 5.6% to $508.8 million for the three months ended June 30, 2020 compared to $482.0 million for the three months ended June 30, 2019, which is consistent with the change in gross written premiums. Premiums earned increased 14.1% to $476.1 million for the three months ended June 30, 2020 compared to $417.4 million for the three months ended June 30, 2019. The change in premiums earned is the result of timing;

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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 14.5% to $1,380.1 million for the six months ended June 30, 2020 compared to $1,205.4 million for the six months ended June 30, 2019.  This increase was related to most lines of business including casualty, property, specialty lines and accident and health.  Net written premiums increased by 15.0% to $1,033.3 million for the six months ended June 30, 2020 compared to $898.2 million for the six months ended June 30, 2019, which is consistent with the change in gross written premiums. Premiums earned increased 21.8% to $963.1 million for the six months ended June 30, 2020 compared to $790.6 million for the six months ended June 30, 2019. The change in premiums earned 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 June 30,
	Current		Ratio %/		Prior		Ratio %/		Total		Ratio %/
(Dollars in millions)	Year		Pt Change		Years		Pt Change		Incurred		Pt Change
2020
Attritional	$	330.5	69.4%		$	0.2	0.0%		$	330.7	69.5%
Catastrophes		15.0	3.2%			(0.5)	-0.1%			14.5	3.0%
Total segment	$	345.5	72.6%		$	(0.3)	-0.1%		$	345.2	72.5%
2019
Attritional	$	279.1	66.9%		$	(18.7)	-4.5%		$	260.4	62.4%
Catastrophes		-	0.0%			1.5	0.4%			1.5	0.4%
Total segment	$	279.1	66.9%		$	(17.2)	-4.1%		$	261.9	62.8%
Variance 2020/2019
Attritional	$	51.4	2.5	pts	$	18.9	4.5	pts	$	70.3	7.1	pts
Catastrophes		15.0	3.2	pts		(2.0)	(0.5)	pts		13.0	2.6	pts
Total segment	$	66.4	5.7	pts	$	16.9	4.0	pts	$	83.3	9.7	pts

	Six Months Ended June 30,
	Current		Ratio %/		Prior		Ratio %/		Total		Ratio %/
(Dollars in millions)	Year		Pt Change		Years		Pt Change		Incurred		Pt Change
2020
Attritional	$	672.3	69.8%		$	(0.3)	0.0%		$	671.9	69.8%
Catastrophes		20.5	2.1%			(0.5)	0.0%			20.0	2.1%
Total segment	$	692.8	71.9%		$	(0.8)	-0.1%		$	692.0	71.8%
2019
Attritional	$	520.9	65.9%		$	(18.7)	-2.4%		$	502.2	63.5%
Catastrophes		-	0.0%			2.1	0.3%			2.1	0.3%
Total segment	$	520.9	65.9%		$	(16.6)	-2.1%		$	504.3	63.8%
Variance 2020/2019
Attritional	$	151.4	3.9	pts	$	18.4	2.4	pts	$	169.7	6.3	pts
Catastrophes		20.5	2.1	pts		(2.6)	(0.3)	pts		17.9	1.8	pts
Total segment	$	171.9	6.0	pts	$	15.8	2.1	pts	$	187.7	8.0	pts
(Some amounts may not reconcile due to rounding.)

Incurred losses and LAE increased by 31.8% to $345.2 million for the three months ended June 30, 2020 compared to $261.9 million for the three months ended June 30, 2019, mainly due to an increase of $51.4 million in current year attritional losses, resulting from $12.5 million of losses from the COVID-19 pandemic and the impact of the increase in premiums earned, as well as an increase of $15.0 million in current year catastrophe losses. The $15.0 million of current year catastrophe losses for the three months ended June 30,

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2020, related to the U.S. civil unrest ($15.0 million). There were no current year catastrophe losses for the three months ended June 30, 2019.

Incurred losses and LAE increased by 37.2% to $692.0 million for the six months ended June 30, 2020 compared to $504.3 million for the six months ended June 30, 2019, mainly due to an increase of $151.4 million in current year attritional losses, resulting from $28.2 million of losses from the COVID-19 pandemic and the impact of the increase in premiums earned, as well as an increase of $20.5 million in current year catastrophe losses. The $20.5 million of current year catastrophe losses for the six months ended June 30, 2020, related to the U.S. civil unrest ($15.0 million) and the Nashville tornadoes ($5.5 million). There were no current year catastrophe losses for the six months ended June 30, 2019.

Segment Expenses.Commission and brokerage increased to $63.4 million for the three months ended June 30, 2020 compared to $58.2 million for the three months ended June 30, 2019. Commission and brokerage increased to $125.6 million for the six months ended June 30, 2020 compared to $109.5 million for the six months ended June 30, 2019. The increases were mainly due to the impact of the increase in premiums earned. Segment other underwriting expenses increased to $67.5 million for the three months ended June 30, 2020 compared to $58.0 million for the three months ended June 30, 2019. Segment other underwriting expenses increased to $138.9 million for the six months ended June 30, 2020 compared to $112.3 million for the six months ended June 30, 2019. The increase were mainly due to the impact of the increase in premiums earned and expenses related to the continued build out of the insurance business.

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. 

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Interest Rate Risk.  Our $12.6 billion investment portfolio, at June 30, 2020, 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. 

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 $1,018.7 million of mortgage-backed securities in the $7,923.8 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 $588.7 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 estimate on 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 June 30, 2020
(Dollars in millions)	-200		-100		-		100		200
Total Market/Fair Value	$	9,095.1	$	8,803.9	$	8,512.8	$	8,221.6	$	7,930.5
Market/Fair Value Change from Base (%)		6.8%		3.4%		0.0%		-3.4%		-6.8%
Change in Unrealized Appreciation
After-tax from Base ($)	$	460.0	$	230.0	$	-	$	(230.0)	$	(460.0)

We had $10,383.3 million and $10,209.5 million of gross reserves for losses and LAE as of June 30, 2020 and December 31, 2019, 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, preferred stock and mutual fund 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 our core 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 June 30, 2020
(Dollars in millions)	-20%		-10%		0%		10%		20%
Fair/Market Value of the Equity Portfolio	$	631.9	$	710.8	$	789.8	$	868.8	$	947.8
After-tax Change in Fair/Market Value		(124.8)		(62.4)		-		62.4		124.8

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Foreign Currency 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 CARES Act, the impact of the TCJA, the adequacy of our provision for uncollectible balances, estimates of our catastrophe exposure, the effects of catastrophic and pandemic 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. 

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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

Other than as set forth below, there have been no material changes from the risk factors previously disclosed in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2019.

The continuing COVID-19 pandemic has adversely affected, and may materially and adversely affect, our results of operations, financial position and liquidity in the future.

The ongoing COVID-19 pandemic, including the related impact on the U.S. and global economies, has adversely affected our results of operations.  We expect the pandemic and its impact on our business to continue and potentially even worsen, but we cannot predict the magnitude or duration of its continued impact, particularly given the great uncertainties associated with COVID-19, including regarding the reopening of the U.S. and global economies and the recovery from its economic and other effects.  The full impact of COVID-19 on our results of operations, financial position and liquidity is not yet known, and likely will not be known for some time, but includes the following:

Claim Losses Related to COVID-19 May Exceed Reserves:  We have established reserves for COVID-19-related losses.  Our reserves represent management’s best estimate of what the settlement and claims administration will cost for claims that have occurred, whether reported or unreported.  Given the great uncertainties associated with COVID-19 and its impact and the limited information upon which our current assumptions and assessments have been made, our preliminary reserves and the underlying estimated level of claim losses and costs arising from COVID-19 may materially change.

Adverse Legislative and Regulatory Action: Legislative and regulatory initiatives taken or which may be taken in response to COVID-19 may adversely affect us.  For example, our business may be subject to, certain initiatives, including, but not limited to: legislative and regulatory action that seeks to retroactively mandate coverage for losses which our insurance policies would not otherwise cover and which were not priced to cover; actions prohibiting us from cancelling insurance policies in accordance with our policy terms or non-renewing policies at their natural expiration; and/or orders to provide premium refunds, grant extended grace periods for premium payments, and provide extended time to pay past due premiums. Any such action would likely increase both our underwriting losses and our expenses and any legal challenges to any such action could take years to resolve.

Reduction in Premiums: The demand for insurance is significantly influenced by general economic conditions. Consequently, reduced economic activity relating to the COVID-19 pandemic is likely to decrease demand for our insurance products and services and negatively impact our premium volumes (and, in certain cases, may result in return of premiums due to a decrease in exposures). This may continue for an indefinite period, with the magnitude of the impact impossible to predict.

51

Investments:  Further disruptions in global financial markets due to the continuing impact of COVID-19 could cause us to incur additional unrealized and/or realized investment losses, including credit impairments in our fixed maturity portfolio.  In addition, the economic uncertainty resulting from COVID-19 may result in a decline in interest rates, which may negatively impact our future net investment income.

Credit Risk:  As credit risk is generally a function of the economy, we face greater credit risk from our policyholders, independent agents and brokers in connection with the payment and remittance of premiums as a result of the economic conditions caused by COVID-19.  Similarly, our credit risk related to the reimbursement of deductibles from policyholders and in connection with reinsurance recoverables has increased.

Operational Disruptions and Costs:  Our operations could be disrupted if key members of our senior management or a significant percentage of our workforce or the workforce of our agents, brokers, suppliers or other third party service providers are unable to continue to work because of illness, government directives or otherwise. In addition, our agents, brokers, suppliers and other third party service providers, which we rely on for key aspects of our operations, are subject to risks and uncertainties related to the COVID-19 pandemic, which may interfere with their ability to fulfill their respective commitments and responsibilities to us in a timely manner and in accordance with the agreed-upon terms.  In response to the COVID-19 pandemic, we have implemented remote working policies which have resulted in disruptions to our business routines, heightened risk to cybersecurity attacks and data security incidents and a greater dependency on internet and telecommunication access and capabilities.

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. 

52

ITEM 6.  EXHIBITS

Exhibit Index:
Exhibit No.	Description
31.1	Section 302 Certification of Juan C. Andrade
31.2	Section 302 Certification of Craig Howie
32.1	Section 906 Certification of Juan C. Andrade 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

53

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:  August 14, 2020

54

EX-31.1

 

Exhibit 31.1

CERTIFICATIONS

I, Juan C. Andrade, 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.

August 14, 2020

/S/ JUAN C. ANDRADE

Juan C. Andrade

Chairman, President and

Chief Executive Officer

1

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.

August 14, 2020

/S/ CRAIG HOWIE

Craig Howie

Executive Vice President and

Chief Financial Officer

1

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 June 30, 2020 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.

August 14, 2020

/S/ JUAN C. ANDRADE

Juan C. Andrade

Chairman, President and

Chief Executive Officer

/S/ CRAIG HOWIE

Craig Howie

Executive Vice President and

Chief Financial Officer

1

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2020	Aug. 01, 2020
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	1-14527
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	22-3263609
Entity Registrant Name	EVEREST REINSURANCE HOLDINGS INC
Entity Address Address Line 1	477 Martinsville Road
Entity Address Address Line 2	Post Office Box 830
Entity Address City Or Town	Liberty Corner
Entity Address State Or Province	NJ
Entity Address Postal Zip Code	07938-0830
City Area Code	908
Local Phone Number	604-3000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common Shares, $0.01 par value
Entity Common Stock, Shares Outstanding		1,000
Amendment Flag	false
Entity Central Index Key	0000914748
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
ASSETS:
Fixed maturities - available for sale, at market value (amortized cost: 2020, $7,657,782; 2019, $7,334,425 allowances for credit losses: 2020, $19,925; 2019, $0)	$ 7,919,377	$ 7,492,079
Fixed maturities - available for sale, at fair value	4,431	5,826
Equity securities, at fair value	789,819	764,049
Short-term investments (cost: 2020, $588,983; 2019, $279,824)	588,693	279,879
Other invested assets (cost: 2020, $1,033,457; 2019, $1,020,766)	1,033,457	1,020,766
Other invested assets, at fair value	1,786,003	1,982,582
Cash	445,617	411,122
Total investments and cash	12,567,397	11,956,303
Note Receivable - affiliated	300,000	300,000
Accrued investment income	62,738	54,383
Premiums receivable	1,479,774	1,337,344
Reinsurance receivables - unaffiliated	1,380,469	1,318,820
Reinsurance receivables - affiliated	2,823,553	3,125,269
Income taxes	86,402	65,793
Funds held by reinsureds	242,611	228,297
Deferred acquisition costs	383,855	388,238
Prepaid reinsurance premiums	396,556	413,612
Other assets	557,699	518,127
TOTAL ASSETS	20,281,054	19,706,186
LIABILITIES:
Reserve for losses and loss adjustment expenses	10,383,323	10,209,519
Unearned premium reserve	2,286,856	2,198,932
Funds held under reinsurance treaties	42,380	41,233
Other net payable to reinsurers	354,900	267,367
Losses in course of payment	188,853	70,541
Senior notes due 6/1/2044	397,134	397,074
Long term notes due 5/1/2067	223,625	236,758
Accrued interest on debt and borrowings	2,368	2,878
Unsettled securities payable	67,485	25,230
Other liabilities	350,558	399,229
Total liabilities	14,297,482	13,848,761
Commitments and Contingencies (Note 6)
STOCKHOLDER'S EQUITY:
Common stock, par value: $0.01; 3,000 shares authorized; 1,000 shares issued and outstanding (2020 and 2019)
Additional paid-in capital	1,100,882	1,100,678
Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) of $38,126 at 2020 and $16,977 at 2019	143,308	64,324
Retained earnings	4,739,382	4,692,423
Total stockholder's equity	5,983,572	5,857,425
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$ 20,281,054	$ 19,706,186

XML

Consolidated Balance Sheets (Parenthetical) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Fixed maturities - available for sale, amortized cost	$ 7,657,782,000	$ 7,334,425,000
Fixed maturities - available for sale, at market value, allowance for credit loss	19,925,000	0
Short-term investments, cost	588,983,000	279,824,000
Other invested assets, cost	$ 1,033,457,000	$ 1,020,766,000
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)	$ 38,126,000	$ 16,977,000
Senior Notes 4.868% [Member] | Senior Notes [Member]
Debt instrument, maturity date	Jun. 01, 2044	Jun. 01, 2044
Subordinated Notes 6.6% [Member] | Long Term Subordinated Debt [Member]
Debt instrument, maturity date	May 01, 2067	May 01, 2067

XML

Consolidated Statements Of Operations And Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
REVENUES:
Premiums earned	$ 1,538,960	$ 1,375,623	$ 3,032,965	$ 2,646,077
Net investment income	35,153	90,709	109,354	175,243
Net realized capital gains (losses):
Credit allowances on fixed maturity securities	(7,826)		(19,925)
Other-than-temporary impairments on fixed maturity securities		(4,929)		(7,219)
Other net realized capital gains (losses)	(471,534)	147,492	(202,568)	284,838
Total net realized capital gains (losses)	(479,360)	142,563	(222,493)	277,619
Other income (expense)	(5,122)	(5,055)	(9,620)	(5,785)
Total revenues	1,089,631	1,603,840	2,910,206	3,093,154
CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses	975,832	843,222	2,005,345	1,639,318
Commission, brokerage, taxes and fees	355,699	316,775	678,803	604,993
Other underwriting expenses	94,131	83,351	195,339	161,733
Corporate expenses	3,514	2,519	7,235	4,170
Interest, fee and bond issue cost amortization expense	6,922	9,684	14,382	19,512
Total claims and expenses	1,436,098	1,255,551	2,901,104	2,429,726
INCOME (LOSS) BEFORE TAXES	(346,467)	348,289	9,102	663,428
Income tax expense (benefit)	(75,874)	67,367	(36,950)	130,898
NET INCOME (LOSS)	(270,593)	280,922	46,052	532,530
Other comprehensive income (loss), net of tax :
Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period	243,550	68,095	66,026	156,544
Less: reclassification adjustment for realized losses (gains) included in net income (loss)	3,543	5,858	31,429	4,842
Total URA(D) on securities arising during the period	247,093	73,953	97,455	161,386
Foreign currency translation adjustments	8,436	(7,475)	(21,197)	2,089
Reclassification adjustment for amortization of net (gain) loss included in net income (loss)	1,806	1,151	2,726	2,302
Total benefit plan net gain (loss) for the period	1,806	1,151	2,726	2,302
Total other comprehensive income (loss), net of tax	257,335	67,629	78,984	165,777
COMPREHENSIVE INCOME (LOSS)	$ (13,258)	$ 348,551	$ 125,036	$ 698,307

XML

Consolidated Statements Of Changes In Stockholder's Equity - USD ($)	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income (Loss), Net Of Taxes [Member]	Retained Earnings [Member]
Change to beginning balance due to adoption of Accounting Standards Update 2016-03					$ 0
Beginning balance, at Dec. 31, 2018			$ 1,100,315,000	$ (126,254,000)	4,062,696,000
Beginning balance, shares at Dec. 31, 2018		1,000
Share-based compensation plans			87,000
Net increase (decrease) during the period				98,148,000
Net income (loss)					251,608,000
Ending balance, shares at Mar. 31, 2019		1,000
Ending balance, at Mar. 31, 2019			1,100,402,000	(28,106,000)	4,314,306,000
Beginning balance, at Dec. 31, 2018			1,100,315,000	(126,254,000)	4,062,696,000
Beginning balance, shares at Dec. 31, 2018		1,000
Net increase (decrease) during the period	$ 165,777,000
Net income (loss)	532,530,000
Ending balance, shares at Jun. 30, 2019		1,000
Ending balance, at Jun. 30, 2019	5,735,239,000		1,100,489,000	39,523,000	4,595,227,000
Beginning balance, at Mar. 31, 2019			1,100,402,000	(28,106,000)	4,314,306,000
Beginning balance, shares at Mar. 31, 2019		1,000
Share-based compensation plans			87,000
Net increase (decrease) during the period	67,629,000			67,629,000
Net income (loss)	280,922,000				280,922,000
Ending balance, shares at Jun. 30, 2019		1,000
Ending balance, at Jun. 30, 2019	5,735,239,000		1,100,489,000	39,523,000	4,595,227,000
Change to beginning balance due to adoption of Accounting Standards Update 2016-03					907,000
Beginning balance, at Dec. 31, 2019	$ 5,857,425,000		1,100,678,000	64,324,000	4,692,423,000
Beginning balance, shares at Dec. 31, 2019	1,000	1,000
Share-based compensation plans			103,000
Net increase (decrease) during the period				(178,351,000)
Net income (loss)					316,645,000
Ending balance, shares at Mar. 31, 2020		1,000
Ending balance, at Mar. 31, 2020			1,100,781,000	(114,027,000)	5,009,975,000
Beginning balance, at Dec. 31, 2019	$ 5,857,425,000		1,100,678,000	64,324,000	4,692,423,000
Beginning balance, shares at Dec. 31, 2019	1,000	1,000
Net increase (decrease) during the period	$ 78,984,000
Net income (loss)	$ 46,052,000
Ending balance, shares at Jun. 30, 2020	1,000	1,000
Ending balance, at Jun. 30, 2020	$ 5,983,572,000		1,100,882,000	143,308,000	4,739,382,000
Beginning balance, at Mar. 31, 2020			1,100,781,000	(114,027,000)	5,009,975,000
Beginning balance, shares at Mar. 31, 2020		1,000
Share-based compensation plans			101,000
Net increase (decrease) during the period	257,335,000			257,335,000
Net income (loss)	$ (270,593,000)				(270,593,000)
Ending balance, shares at Jun. 30, 2020	1,000	1,000
Ending balance, at Jun. 30, 2020	$ 5,983,572,000		$ 1,100,882,000	$ 143,308,000	$ 4,739,382,000

XML

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 46,052	$ 532,530
Adjustments to reconcile net income to net cash provided by operating activities:
Decrease (increase) in premiums receivable	(147,210)	(93,371)
Decrease (increase) in funds held by reinsureds, net	(13,336)	(13,929)
Decrease (increase) in reinsurance receivables	233,199	82,701
Decrease (increase) in income taxes	(41,843)	214,671
Decrease (increase) in prepaid reinsurance premiums	15,928	(110,643)
Increase (decrease) in reserve for losses and loss adjustment expenses	205,192	(21,387)
Increase (decrease) in unearned premiums	90,640	176,412
Increase (decrease) in other net payable to reinsurers	89,520	3,307
Increase (decrease) in losses in course of payment	118,964	(22,634)
Change in equity adjustments in limited partnerships	50,809	(23,662)
Distribution of limited partnership income	30,916	24,969
Change in other assets and liabilities, net	(75,931)	(65,421)
Non-cash compensation expense	15,462	13,913
Amortization of bond premium (accrual of bond discount)	4,436	826
Net realized capital (gains) losses	222,493	(277,619)
Net cash provided by (used in) operating activities	845,291	420,663
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from fixed maturities matured/called - available for sale, at market value	494,544	437,371
Proceeds from fixed maturities sold - available for sale, at market value	337,723	2,004,602
Proceeds from fixed maturities sold - available for sale, at fair value		2,706
Proceeds from equity securities sold - at fair value	213,003	148,973
Distributions from other invested assets	119,727	76,149
Cost of fixed maturities acquired - available for sale, at market value	(1,226,251)	(2,251,818)
Cost of equity securities acquired- at fair value	(222,818)	(228,872)
Cost of other invested assets acquired	(215,569)	(138,096)
Net change in short-term investments	(308,979)	(192,889)
Net change in unsettled securities transactions	37,744	13,100
Net cash provided by (used in) investing activities	(770,876)	(128,774)
CASH FLOWS FROM FINANCING ACTIVITIES:
Tax benefit from share-based compensation, net of expense	(15,258)	(13,739)
Cost of debt repurchase	(10,648)
Proceeds from issuance (cost of repayment) of note payable-affiliated		(300,000)
Net cash provided by (used in) financing activities	(25,906)	(313,739)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(14,015)	(5,483)
Net increase (decrease) in cash	34,495	(27,333)
Cash, beginning of period	411,122	404,522
Cash, end of period	445,617	377,189
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid (recovered)	4,763	(87,045)
Interest paid	$ 14,782	$ 19,433

XML

General

6 Months Ended

Jun. 30, 2020

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 fourth quarter of 2018, Everest Global Services (“Global Services”), a previously affiliated company, was contributed to Holdings from its parent company, Holdings Ireland.

XML

Basis Of Presentation

6 Months Ended

Jun. 30, 2020

Basis Of Presentation [Abstract]

Basis Of Presentation

2.  BASIS OF PRESENTATION

The unaudited interim consolidated financial statements of the Company for the three and six months ended June 30, 2020 and 2019 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, 2019 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 six months ended June 30, 2020 and 2019 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, 2019, 2018 and 2017 included in the Company’s most recent Form 10-K filing.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities (and disclosure of contingent assets and liabilities) at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Ultimate actual results could differ, possibly materially, from those estimates. This is particularly true given the fluid and continuing nature of the COVID-19 pandemic. This is an ongoing event and so is the Company’s evaluation and analysis. While the Company’s analysis considers all aspects of its operations, it does not take into account legal, regulatory or legislative intervention that could retroactively mandate or expand coverage provisions. Given the uncertainties in the current public health and economic environment, there could be an adverse impact on results for the Property & Casualty industry and the Company for the remainder of the year. The impact is dependent on the shape and length of the economic recovery.

With recent changes in executive management and organizational structure, the Company manages its reinsurance and insurance operations as autonomous units and key strategic decisions are based on the aggregate operating results and projections for these segments of business. Accordingly, effective January 1, 2020, the Company revised it reporting segments to Reinsurance Operations and Insurance Operations. This replaces the previous reported segments of U.S. Reinsurance, International (reinsurance) and Insurance. The prior year presented segment information has been reformatted to reflect this change.

All intercompany accounts and transactions have been eliminated.

Certain reclassifications and format changes have been made to prior years’ amounts to conform to the 2020 presentation.

Application of Recently Issued Accounting Standard Changes.

Accounting for Income Taxes. In December 2019, The Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, which provides simplification of existing guidance for income taxes, including the removal of certain exceptions related to recognition of deferred tax liabilities on foreign subsidiaries. The guidance is effective for annual reporting periods beginning after December 15, 2020 and interim periods within that annual reporting period. The Company is currently evaluating the impact of the adoption of ASU 2019-12 on its financial statements.

Simplification of Disclosure Requirements. In August 2018, the Securities and Exchange Commission (“SEC”) issued Final Rule Release #33-10532 (“the Rule”) which addresses the simplification of the SEC’s disclosure requirements for quarterly and annual financial reports. The main change addressed by the Rule that is applicable to the Company is a new requirement to disclose changes in equity by line item with subtotals for each interim reporting period on the Statements of Changes in Shareholders’ Equity. The Rule became effective for all financial reports filed after November 5, 2018 (30 days after its publication in the Federal Register), except for the additional requirement for the Statements of Changes in Shareholders’ Equity which was to be implemented for first quarter 2019 reporting. The Company has adopted the portions of the Rule that became effective November 5, 2018. The portion of the Rule related to the new requirement for the Statements of Changes in Shareholders’ Equity was adopted by the Company in the first quarter of 2019.

Accounting for Cloud Computing Arrangement.  In August 2018, FASB issued ASU 2018-15, which outlines accounting for implementation costs of a cloud computing arrangement that is a service contract.  This guidance requires that implementation costs of a cloud computing arrangement that is a service contract must be capitalized and expensed in accordance with the existing provisions provided in Subtopic 350-40 regarding development of internal use software. In addition, any capitalized implementation costs should be amortized over the term of the hosting arrangement.  The guidance is effective for annual reporting periods beginning after December 15, 2019 and interim periods within that annual reporting period. The Company adopted the guidance as of January 1, 2020. The adoption of ASU 2018-15 did not have a material impact on the Company’s financial statements.

Accounting for Impact on Income Taxes due to Tax Reform. In December 2017, the SEC issued Staff Accounting Bulletin (“SAB”) 118, which provides guidance on the application of FASB Accounting Standards Codification (“ASC”) Topic 740, Income Taxes, due to the enactment of TCJA. SAB 118 became effective upon release. The Company has adopted the provisions of SAB 118 with respect to measuring the tax effects for the modifications to the determination of tax basis loss reserves. In 2018, the Company recorded adjustments to the amount of tax expense it recorded in 2017 with respect to the TCJA as estimated amounts were finalized, which did not have a material impact on the Company’s financial statements.

Amortization of Bond Premium.  In March 2017, FASB issued ASU 2017-08 which outlines guidance on the amortization period for premium on callable debt securities.  The new guidance requires that the premium on callable debt securities be amortized through the earliest call date rather than through the maturity date of the callable security.  The guidance is effective for annual and interim reporting periods beginning after December 15, 2018.  The Company adopted the guidance effective January 1, 2019. The adoption of ASU 2017-08 did not have a material impact on the Company’s financial statements.

Valuation of Financial Instruments.  In June 2016, FASB issued ASU 2016-13 (and has subsequently issued related guidance and amendments in ASU 2019-11 and ASU 2019-10 in November 2019) which outline guidance on the valuation of and accounting for assets measured at amortized cost and available for sale debt securities.  The carrying value of assets measured at amortized cost will now be presented as the amount expected to be collected on the financial asset (amortized cost less an allowance for credit losses valuation account).  Available for sale debt securities will now record credit losses through an allowance for credit losses, which will be limited to the amount by which fair value is below amortized cost.  The guidance is effective for annual and interim reporting periods beginning after December 15, 2019.  The Company adopted the guidance effective January 1, 2020. The adoption resulted in a cumulative adjustment of $907 thousand in retained earnings, which is disclosed separately within the Consolidated Statements of Shareholders’ Equity.

Leases. In February 2016, FASB issued ASU 2016-02 (and subsequently issued ASU 2018-11 in July, 2018) which outline new guidance on the accounting for leases. The new guidance requires the recognition of lease assets and lease liabilities on the balance sheets for most leases that were previously deemed operating leases and required only lease expense presentation in the statements of operations. The guidance is effective for annual and interim reporting periods beginning after December 15, 2018. The Company adopted ASU 2016-02 effective January 1, 2019 and elected to utilize a cumulative-effect adjustment to the opening balance of retained earnings for the year of adoption. Accordingly, the Company’s reporting for the comparative periods prior to adoption continue to be presented in the financial statements in accordance with previous lease accounting guidance. The Company also elected to apply the package of practical expedients applicable to the Company in the updated guidance for transition for leases in effect at adoption. The Company did not elect the hindsight practical expedient to determine the lease term of existing leases (e.g. The Company did not re-assess lease renewals, termination options nor purchase options in determining lease terms). The adoption of the updated guidance resulted in the Company recognizing a right-of-use asset of $60,325 thousand as part of other assets and a lease liability of $66,551 thousand as part of other liabilities in the consolidated balance sheet, as well as de-recognizing the liability for deferred rent that was required under the previous guidance. The cumulative effect adjustment to the opening balance of retained earnings was zero. The adoption of the updated guidance did not have a material effect on the Company’s results of operations or liquidity.

Any issued guidance and pronouncements, other than those directly referenced above, are deemed by the Company to be either not applicable or immaterial to its financial statements.

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Investments

6 Months Ended

Jun. 30, 2020

Investments [Abstract]

Investments

3. INVESTMENTS

Effective January 1, 2020, the Company adopted ASU 2016-13 which provides guidance on the accounting for fixed maturity securities. The guidance requires the Company to record allowances for credit losses for securities that are deemed to have valuation deterioration due to credit risk issues. The initial table below presents the amortized cost, allowance for credit losses, gross unrealized appreciation/(depreciation) and market value of fixed maturity securities as of June 30, 2020 in accordance with ASU 2016-13 guidance. The second table presents the amortized cost, gross unrealized appreciation/(depreciation), market value and other-than-temporary impairments (“OTTI”) in AOCI as of December 31, 2019, in accordance with previously applicable guidance

	At June 30, 2020
	Amortized		Allowances for		Unrealized		Unrealized		Market
(Dollars in thousands)	Cost		Credit Losses		Appreciation		Depreciation		Value
Fixed maturity securities
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	741,244	$	-	$	31,740	$	-	$	772,984
Obligations of U.S. states and political  subdivisions		507,475		-		27,597		(3,789)		531,283
Corporate securities		2,935,665		(19,398)		135,213		(51,922)		2,999,558
Asset-backed securities		991,779		-		14,504		(21,500)		984,783
Mortgage-backed securities
Commercial		348,329		-		33,506		(788)		381,047
Agency residential		604,360		-		33,190		(349)		637,201
Non-agency residential		509		-		-		(3)		506
Foreign government securities		636,346		-		38,578		(5,034)		669,890
Foreign corporate securities		892,075		(527)		57,601		(7,024)		942,125
Total fixed maturity securities	$	7,657,782	$	(19,925)	$	371,929	$	(90,409)	$	7,919,377

	At December 31, 2019
	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	$	768,374	$	10,128	$	(987)	$	777,515	$	-
Obligations of U.S. states and political  subdivisions		506,347		29,651		(87)		535,911		-
Corporate securities		2,777,097		70,898		(26,438)		2,821,557		245
Asset-backed securities		761,607		5,659		(1,309)		765,957		-
Mortgage-backed securities
Commercial		311,961		17,242		(154)		329,049		-
Agency residential		625,612		19,395		(320)		644,687		-
Non-agency residential		1,638		-		-		1,638		-
Foreign government securities		646,149		18,908		(7,050)		658,007		27
Foreign corporate securities		935,640		31,257		(9,139)		957,758		333
Total fixed maturity securities	$	7,334,425	$	203,138	$	(45,484)	$	7,492,079	$	605

^(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 tables 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 June 30, 2020				At December 31, 2019
	Amortized		Market		Amortized		Market
(Dollars in thousands)	Cost		Value		Cost		Value
Fixed maturity securities – available for sale
Due in one year or less	$	716,996	$	714,607	$	569,506	$	563,730
Due after one year through five years		2,773,635		2,866,814		2,919,966		2,963,903
Due after five years through ten years		1,615,652		1,735,868		1,541,695		1,602,642
Due after ten years		606,522		598,551		602,440		620,473
Asset-backed securities		991,779		984,783		761,607		765,957
Mortgage-backed securities
Commercial		348,329		381,047		311,961		329,049
Agency residential		604,360		637,201		625,612		644,687
Non-agency residential		509		506		1,638		1,638
Total fixed maturity securities	$	7,657,782	$	7,919,377	$	7,334,425	$	7,492,079

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 Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Increase (decrease) during the period between the market value and cost of investments carried at market value, and deferred taxes thereon:
Fixed maturity securities	$	311,927	$	93,919	$	123,520	$	204,828
Fixed maturity securities, other-than-temporary impairment		-		(368)		-		(700)
Change in unrealized appreciation (depreciation), pre-tax		311,927		93,551		123,520		204,128
Deferred tax benefit (expense)		(64,834)		(19,675)		(26,065)		(42,889)
Deferred tax benefit (expense), other-than-temporary impairment		-		77		-		147
Change in unrealized appreciation (depreciation),  net of deferred taxes, included in stockholder's equity	$	247,093	$	73,953	$	97,455	$	161,386

The Company reviews all of its fixed maturity, available for sale securities whose fair value has fallen below their amortized cost at the time of review. The Company then assesses whether the decline in value is temporary or credit related. 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 a credit 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 intends to sell the security or is more likely than not to sell the security, the Company records the entire fair value adjustment in net realized capital gains (losses) in the Company’s consolidated statements of operations and comprehensive income (loss). If the Company determines that the decline is credit related 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 Company establishes a credit allowance equal to the estimated credit loss and is recorded in net realized capital gains (losses) in the Company’s consolidated statements of operations and comprehensive income (loss). The amount of the allowance for a given security will generally be the difference between a discounted cash flow model and the Company’s carrying value. 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. We will adjust the credit allowance account for future changes in credit loss estimates for a security and record this adjustment through net realized capital gains (losses) in the Company’s consolidated statements of operations and comprehensive income (loss).

The Company does not create an allowance for uncollectible interest. If interest is not received when due, the interest receivable is immediately reversed and no additional interest is accrued. If future interest is received that has not been accrued, it is recorded as income at that time.

Prior to the adoption of ASU 2016-13 effective January 1, 2020, estimated credit losses were recorded as adjustments to the carrying value of the security and any subsequent improvement in market value were recorded through other comprehensive income.

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 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 June 30, 2020 By Security Type
	Less than 12 months				Greater than 12 months				Total
			Gross				Gross				Gross
	Market		Unrealized		Market		Unrealized		Market		Unrealized
(Dollars in thousands)	Value		Depreciation		Value		Depreciation		Value		Depreciation
Fixed maturity securities -  available for sale
Obligations of U.S. states and  political subdivisions		70,056		(3,564)		3,331		(225)		73,387		(3,789)
Corporate securities		423,967		(20,116)		122,165		(31,806)		546,132		(51,922)
Asset-backed securities		437,211		(16,250)		129,870		(5,250)		567,081		(21,500)
Mortgage-backed securities
Commercial		31,984		(756)		3,303		(32)		35,287		(788)
Agency residential		23,621		(342)		1,166		(7)		24,787		(349)
Non-agency residential		161		(2)		344		(1)		505		(3)
Foreign government securities		51,453		(506)		41,802		(4,528)		93,255		(5,034)
Foreign corporate securities		90,660		(2,151)		38,483		(4,873)		129,143		(7,024)
Total fixed maturity securities	$	1,129,113	$	(43,687)	$	340,464	$	(46,722)	$	1,469,577	$	(90,409)

	Duration of Unrealized Loss at June 30, 2020 By Maturity
	Less than 12 months				Greater than 12 months				Total
			Gross				Gross				Gross
	Market		Unrealized		Market		Unrealized		Market		Unrealized
(Dollars in thousands)	Value		Depreciation		Value		Depreciation		Value		Depreciation
Fixed maturity securities
Due in one year or less	$	32,323	$	(473)	$	52,176	$	(8,444)	$	84,499	$	(8,917)
Due in one year through five years		340,168		(12,125)		94,125		(6,849)		434,293		(18,974)
Due in five years through ten years		154,542		(6,913)		2,842		(659)		157,384		(7,572)
Due after ten years		109,103		(6,826)		56,638		(25,480)		165,741		(32,306)
Asset-backed securities		437,211		(16,250)		129,870		(5,250)		567,081		(21,500)
Mortgage-backed securities		55,766		(1,100)		4,813		(40)		60,579		(1,140)
Total fixed maturity securities	$	1,129,113	$	(43,687)	$	340,464	$	(46,722)	$	1,469,577	$	(90,409)

The aggregate market value and gross unrealized losses related to investments in an unrealized loss position at June 30, 2020 were $1,469,577 thousand and $90,409 thousand, respectively. The market value of securities for the single issuer whose securities comprised the largest unrealized loss position at June 30, 2020, did not exceed 0.1% 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 $43,687 thousand of unrealized losses related to fixed maturity securities that have been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate securities and asset backed securities. Of these unrealized losses, $25,991 thousand were related to securities that were rated investment grade by at least one nationally recognized statistical rating agency. The $46,722 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 asset backed securities. Of these unrealized losses $15,488 thousand were related to securities that were rated investment grade by at least one nationally recognized statistical rating agency. There was no gross unrealized depreciation for mortgage-backed securities related to sub-prime and alt-A loans. 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 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, 2019 By Security Type
	Less than 12 months				Greater than 12 months				Total
			Gross				Gross				Gross
	Market		Unrealized		Market		Unrealized		Market		Unrealized
(Dollars in thousands)	Value		Depreciation		Value		Depreciation		Value		Depreciation
Fixed maturity securities -  available for sale
U.S. Treasury securities and  obligations of U.S. government  agencies and corporations	$	8,997	$	(141)	$	203,780	$	(846)	$	212,777	$	(987)
Obligations of U.S. states and  political subdivisions		4,600		(38)		4,518		(49)		9,118		(87)
Corporate securities		334,973		(5,186)		230,679		(21,252)		565,652		(26,438)
Asset-backed securities		159,695		(887)		76,351		(422)		236,046		(1,309)
Mortgage-backed securities
Commercial		13,083		(87)		16,374		(67)		29,457		(154)
Agency residential		19,019		(82)		17,147		(238)		36,166		(320)
Non-agency residential		-		-		690		-		690		-
Foreign government securities		113,256		(858)		109,953		(6,192)		223,209		(7,050)
Foreign corporate securities		105,551		(1,260)		121,710		(7,879)		227,261		(9,139)
Total fixed maturity securities	$	759,174	$	(8,539)	$	781,202	$	(36,945)	$	1,540,376	$	(45,484)

	Duration of Unrealized Loss at December 31, 2019 By Maturity
	Less than 12 months				Greater than 12 months				Total
			Gross				Gross				Gross
	Market		Unrealized		Market		Unrealized		Market		Unrealized
(Dollars in thousands)	Value		Depreciation		Value		Depreciation		Value		Depreciation
Fixed maturity securities
Due in one year or less	$	34,542	$	(1,067)	$	188,755	$	(6,411)	$	223,297	$	(7,478)
Due in one year through five years		226,521		(2,554)		357,728		(11,562)		584,249		(14,116)
Due in five years through ten years		251,967		(3,292)		43,129		(6,785)		295,096		(10,077)
Due after ten years		54,347		(570)		81,028		(11,460)		135,375		(12,030)
Asset-backed securities		159,695		(887)		76,351		(422)		236,046		(1,309)
Mortgage-backed securities		32,102		(169)		34,211		(305)		66,313		(474)
Total fixed maturity securities	$	759,174	$	(8,539)	$	781,202	$	(36,945)	$	1,540,376	$	(45,484)

The aggregate market value and gross unrealized losses related to investments in an unrealized loss position at December 31, 2019 were $1,540,376 thousand and $45,484 thousand, respectively. The market value of securities for the single issuer whose securities comprised the largest unrealized loss position at December 31, 2019, did not exceed 0.2% 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 $8,539 thousand of unrealized losses related to fixed maturity securities that have been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate securities. Of these unrealized losses, $5,645 thousand were related to securities that were rated investment grade by at least one nationally recognized statistical rating agency. The $36,945 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. Of these unrealized losses $16,976 thousand were related to securities that were rated investment grade by at least one nationally recognized statistical rating agency. There was no gross unrealized depreciation for mortgage-backed securities related to sub-prime and alt-A loans. 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 components of net investment income are presented in the tables below for the periods indicated:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Fixed maturities	$	74,897	$	65,374	$	148,985	$	132,428
Equity securities		2,024		2,319		3,616		3,750
Short-term investments and cash		578		3,169		2,148		5,905
Other invested assets
Limited partnerships		(40,465)		15,116		(33,469)		23,171
Dividends from preferred shares of affiliate		7,758		7,758		15,516		15,516
Other		(2,962)		3,299		(16,034)		6,279
Gross investment income before adjustments		41,830		97,035		120,762		187,049
Funds held interest income (expense)		901		1,445		4,158		4,326
Interest income from Parent		1,281		-		2,563		-
Gross investment income		44,012		98,480		127,483		191,375
Investment expenses		(8,859)		(7,771)		(18,129)		(16,132)
Net investment income	$	35,153	$	90,709	$	109,354	$	175,243
(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 $1,040,369 thousand in limited partnerships and private placement loans at June 30, 2020. These commitments will be funded when called in accordance with the partnership and loan agreements, which have investment periods that expire, unless extended, through 2026.

The Company participates in a private placement liquidity sweep facility (“the facility”). The primary purpose of the facility is to enhance the Company’s return on its short-term investments and cash positions. The facility invests in high quality, short-duration securities and permits daily liquidity. The Company consolidates its participation in the facility. As of June 30, 2020, the market value of investments in the facility consolidated within the Company’s balance sheets was $340,950 thousand.

Other invested assets, at fair value, as of June 30, 2020 and December 31, 2019, were comprised of preferred shares held in Preferred Holdings, an affiliated company.

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Fixed maturity securities, market value:
Allowances for credit losses	$	(7,826)	$	-	$	(19,925)	$	-
Other-than-temporary impairments		-		(4,929)		-		(7,219)
Gains (losses) from sales		1,963		(2,313)		(18,974)		1,113
Fixed maturity securities, fair value:
Gains (losses) from sales		-		356		-		356
Gains (losses) from fair value adjustments		(272)		-		(1,395)		13
Equity securities, fair value:
Gains (losses) from sales		16,274		(1,314)		(11,328)		3,730
Gains (losses) from fair value adjustments		148,205		25,829		26,536		103,675
Other invested assets		1,292		(152)		(1,035)		244
Other invested assets, fair value:
Gains (losses) from fair value adjustments		(639,058)		125,024		(196,579)		175,651
Short-term investment gains (losses)		62		62		207		56
Total net realized capital gains (losses)	$	(479,360)	$	142,563	$	(222,493)	$	277,619

	Roll Forward of Allowance for Credit Losses
	Three Months Ended June 30, 2020								Six Months Ended June 30, 2020
			Foreign		Foreign						Foreign		Foreign
	Corporate		Government		Corporate				Corporate		Government		Corporate
	Securities		Securities		Securities		Total		Securities		Securities		Securities		Total
Beginning Balance	$	(11,468)	$	(70)	$	(561)	$	(12,099)	$	-	$	-	$	-	$	-
Credit losses on securities where credit
losses were not previously recorded		(10,355)		-		-		(10,355)		(21,823)		(70)		(561)		(22,454)
Increases in allowance on previously
impaired securities		(555)		-		(211)		(766)		(555)		-		(211)		(766)
Decreases in allowance on previously
impaired securities		1,238		-		116		1,354		1,238		-		116		1,354
Reduction in allowance due to disposals		1,742		70		129		1,941		1,742		70		129		1,941
Balance as of June 30, 2020	$	(19,398)	$	-	$	(527)	$	(19,925)	$	(19,398)	$	-	$	(527)	$	(19,925)

The Company recorded as net realized capital gains (losses) in the consolidated statements of operations and comprehensive income (loss) fair value re-measurements, allowances for credit losses per ASU 2016-13 and write-downs in the value of securities deemed to be impaired on an other-than-temporary basis in prior years 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				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Proceeds from sales of fixed maturity securities	$	173,479	$	403,419	$	337,723	$	2,007,308
Gross gains from sales		8,755		3,133		10,601		11,237
Gross losses from sales		(6,792)		(5,090)		(29,575)		(9,768)
Proceeds from sales of equity securities	$	8,842	$	79,735	$	213,003	$	148,973
Gross gains from sales		18,172		2,577		20,753		8,248
Gross losses from sales		(1,898)		(3,891)		(32,081)		(4,518)

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Reserves For Losses And LAE

6 Months Ended

Jun. 30, 2020

Reserves For Losses And LAE [Abstract]

Reserves For Losses And LAE

4. RESERVES FOR LOSSES AND LAE

Activity in the reserve for losses and LAE is summarized for the periods indicated:

	Six Months Ended June 30,
(Dollars in thousands)		2020		2019
Gross reserves beginning of period	$	10,209,519	$	10,167,018
Less reinsurance recoverables		(4,215,348)		(4,697,543)
Net reserves beginning of period		5,994,171		5,469,475
Incurred related to:
Current year		2,006,988		1,615,277
Prior years		(1,643)		24,041
Total incurred losses and LAE		2,005,345		1,639,318
Paid related to:
Current year		474,372		391,381
Prior years		1,025,866		1,144,204
Total paid losses and LAE		1,500,238		1,535,585
Foreign exchange/translation adjustment and cumulative adjustment due to adoption of ASU 2016-13		(26,906)		228
Net reserves end of period		6,472,371		5,573,437
Plus reinsurance recoverables		3,910,952		4,574,975
Gross reserves end of period	$	10,383,323	$	10,148,412
(Some amounts may not reconcile due to rounding.)

Current year incurred losses were $2,006,988 thousand for the six months ended June 30, 2020 and $1,615,277 thousand for the six months ended June 30, 2019, respectively. The increase in current year incurred losses in 2020 compared to 2019 was primarily due to $73,691 thousand of incurred losses due to COVID-19 as well as the impact of the increase in premiums earned.

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Fair Value

6 Months Ended

Jun. 30, 2020

Fair Value [Abstract]

Fair Value

5. 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 managing publicly traded securities 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. At June 30, 2020, $953,190 thousand of fixed maturities, market value and $4,431 thousand of fixed maturities, fair value were fair valued using unobservable inputs. The majority of the fixed maturities, market value, $782,259 thousand and all of the $4,431 thousand of fixed maturities, fair value, were valued by investment managers’ valuation committees and many of these fair values were substantiated by valuations from independent third parties. The Company has procedures in place to review and evaluate these independent third party valuations. The remaining Level 3 fixed maturities of $170,931 thousand were fair valued by the Company at either par or amortized cost, which the Company believes approximates fair value. At December 31, 2019, $702,331 thousand of fixed maturities, market value and $5,826 thousand of fixed maturities, fair value were fair valued using unobservable inputs. The majority of the fixed maturities, market value, $610,873 thousand and all of the $5,826 thousand of fixed maturities, fair value, were valued by investment managers’ valuation committees and a majority of these fair values were substantiated by valuations from independent third parties. The remaining Level 3 fixed maturities of $91,458 thousand were fair valued by the Company at either par or amortized cost, which the Company believes approximates fair value.

The Company internally manages a public equity portfolio which had a fair value at June 30, 2020 and December 31, 2019 of $365,554 thousand and $170,888 thousand, respectively, and all prices were obtained from publicly 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. During the three months ended June 30, 2020, the Company purchased preferred stock in a private entity and these are categorized as Level 3.

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 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, were categorized as Level 3 at June 30, 2020 and December 31, 2019, 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. The 25 year redeemable, convertible preferred stock with a 1.75% coupon is valued using a pricing model. The pricing model includes observable inputs such as the U.S. Treasury yield curve rate T note constant maturity 10 year and the swap rate on the Company’s June 1, 2044, 4.868% senior notes, with adjustments to reflect the Company’s own assumptions about the inputs that market participants would use in pricing the asset.

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)	June 30, 2020		(Level 1)		(Level 2)		(Level 3)
Assets:
Fixed maturities, market value
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	772,984	$	-	$	772,984	$	-
Obligations of U.S. States and political subdivisions		531,283		-		531,283		-
Corporate securities		2,999,558		-		2,348,372		651,186
Asset-backed securities		984,783		-		689,053		295,730
Mortgage-backed securities
Commercial		381,047		-		381,047		-
Agency residential		637,201		-		637,201		-
Non-agency residential		506		-		506		-
Foreign government securities		669,890		-		669,890		-
Foreign corporate securities		942,125		-		935,851		6,274
Total fixed maturities, market value		7,919,377		-		6,966,187		953,190
Fixed maturities, fair value		4,431		-		-		4,431
Equity securities, fair value		789,819		740,197		39,745		9,877
Other invested assets, fair value		1,786,003		-		-		1,786,003

There were no transfers between Level 1 and Level 2 for the six months ended June 30, 2020.

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, 2019		(Level 1)		(Level 2)		(Level 3)
Assets:
Fixed maturities, market value
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	777,515	$	-	$	777,515	$	-
Obligations of U.S. States and political subdivisions		535,911		-		535,911		-
Corporate securities		2,821,557		-		2,274,618		546,939
Asset-backed securities		765,957		-		612,316		153,641
Mortgage-backed securities
Commercial		329,049		-		329,049		-
Agency residential		644,687		-		644,687		-
Non-agency residential		1,638		-		1,638		-
Foreign government securities		658,007		-		658,007		-
Foreign corporate securities		957,758		-		956,007		1,751
Total fixed maturities, market value		7,492,079		-		6,789,748		702,331
Fixed maturities, fair value		5,826		-		-		5,826
Equity securities, fair value		764,049		719,548		44,501		-
Other invested assets, fair value		1,982,582		-		-		1,982,582

In addition, $224,467 thousand and $209,578thousand of investments within other invested assets on the consolidated balance sheets as of June 30, 2020 and December 31, 2019, respectively, are not included within the fair value hierarchy tables as the assets are measured at NAV as a practical expedient to determine fair value.

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

	Total Fixed Maturities, Market Value
	Three Months Ended June 30, 2020								Six Months Ended June 30, 2020
	Corporate		Asset		Foreign				Corporate		Foreign		Foreign
(Dollars in thousands)	Securities		Backed Securities		Corporate		Total		Securities		Corporate		Corporate		Total
Beginning balance	$	642,432	$	238,631	$	-	$	881,063	$	546,939	$	153,641	$	1,751	$	702,331
Total gains or (losses) (realized/unrealized)
Included in earnings		(248)		121		(97)		(224)		(462)		125		(97)		(434)
Included in other comprehensive  income (loss)		(549)		18,092		(40)		17,503		(3,906)		2,210		(40)		(1,736)
Purchases, issuances and settlements		14,346		38,886		5,434		58,666		113,410		139,754		3,683		256,847
Transfers in and/or (out) of Level 3		(4,795)		-		977		(3,818)		(4,795)		-		977		(3,818)
Ending balance	$	651,186	$	295,730	$	6,274	$	953,190	$	651,186	$	295,730	$	6,274	$	953,190
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	$	-	$	-	$	-	$	-	$	(539)	$	-	$	-	$	(539)
(Some amounts may not reconcile due to rounding.)

	Total Fixed Maturities, Market Value
	Three Months Ended June 30, 2019						Six Months Ended June 30, 2019
	Corporate		Foreign				Corporate		Foreign
(Dollars in thousands)	Securities		Corporate		Total		Securities		Corporate		Total
Beginning balance	$	367,178	$	7,298	$	374,476	$	376,250	$	7,744	$	383,994
Total gains or (losses) (realized/unrealized)
Included in earnings		(2,528)		(238)		(2,766)		2,330		(119)		2,211
Included in other comprehensive income (loss)		1,870		-		1,870		2,444		-		2,444
Purchases, issuances and settlements		101,732		(4,967)		96,765		89,686		(5,532)		84,154
Transfers in and/or (out) of Level 3		3,977		-		3,977		1,519		-		1,519
Ending balance	$	472,229	$	2,093	$	474,322	$	472,229	$	2,093	$	474,322
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.)

	Total Fixed Maturities, Fair Value
	Three Months Ended June 30, 2020				Six Months Ended June 30, 2020
	Foreign				Foreign
(Dollars in thousands)	Corporate		Total		Corporate		Total
Beginning balance fixed maturities at fair value	$	4,703	$	4,703	$	5,826	$	5,826
Total gains or (losses) (realized/unrealized)
Included in earnings		(272)		(272)		(1,395)		(1,395)
Included in other comprehensive income (loss)		-		-		-		-
Transfers in and/or (out) of Level 3		-		-		-		-
Ending balance	$	4,431	$	4,431	$	4,431	$	4,431
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.)

	Total Fixed Maturities, Fair Value
	Three Months Ended June 30, 2019				Six Months Ended June 30, 2019
	Foreign				Foreign
(Dollars in thousands)	Corporate		Total		Corporate		Total
Beginning balance fixed maturities at fair value	$	2,350	$	2,350	$	2,337	$	2,337
Total gains or (losses) (realized/unrealized)
Included in earnings		356		356		369		369
Included in other comprehensive income (loss)		-		-		-		-
Purchases, issuances and settlements		(2,706)		(2,706)		(2,706)		(2,706)
Transfers in and/or (out) of Level 3		-		-		-		-
Ending balance	$	-	$	-	$	-	$	-
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 for fixed maturities, market value were ($3,818) thousand for both the three and six months ended June 30, 2020 and were $3,977 thousand and $1,519 thousand for the three and six months ended June 30, 2019, respectively. The transfers during 2020 were related to securities that were priced using investment managers as of December 31, 2019 and were subsequently priced by a recognized pricing service as of June 30, 2020. The transfers during 2019 were related to securities that were priced using a recognized pricing service as of December 31, 2018 and were subsequently priced by investment managers as of June 30, 2019.

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Equity securities
Balance, beginning of period	$	-	$	-	$	-	$	-
Total (gains) or losses (realized/unrealized)
Included in earnings		-		-		-		-
Included in other comprehensive income (loss)		-		-		-		-
Purchases, issuances and settlements		9,877		-		9,877		-
Transfers in and/or (out) of Level 3		-		-		-		-
Balance, end of period	$	9,877	$	-	$	9,877	$	-
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 liabilities still held at the reporting date	$	-	$	-	$	-	$	-
(Some amounts may not reconcile due to rounding.)

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				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Other invested assets, fair value:
Beginning balance	$	2,425,061	$	1,767,963	$	1,982,582	$	1,717,336
Total gains or (losses) (realized/unrealized)
Included in earnings		(639,058)		125,025		(196,579)		175,652
Included in other comprehensive income (loss)		-		-		-		-
Purchases, issuances and settlements		-		-		-		-
Transfers in and/or (out) of Level 3		-		-		-		-
Ending balance	$	1,786,003	$	1,892,988	$	1,786,003	$	1,892,988
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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Commitments And Contingencies

6 Months Ended

Jun. 30, 2020

Commitments And Contingencies [Abstract]

Commitments And Contingencies

6. COMMITMENTS AND 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 Company 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 contract.

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

	At June 30, 2020		At December 31, 2019
(Dollars in thousands)
The Prudential	$	141,186	$	141,703
Unaffiliated life insurance company		33,778		35,082

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Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2020

Comprehensive Income (Loss) [Abstract]

Comprehensive Income (Loss)

7. COMPREHENSIVE INCOME (LOSS)

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

	Three Months Ended June 30, 2020						Six Months Ended June 30, 2020
(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	$	307,356		(63,806)	$	243,550	$	83,586		(17,560)	$	66,026
URA(D) on securities - OTTI		-		-		-		-		-		-
Reclassification of net realized losses (gains) included in net income (loss)		4,570		(1,027)		3,543		39,934		(8,505)		31,429
Foreign currency translation adjustments		10,675		(2,239)		8,436		(26,857)		5,660		(21,197)
Reclassification of amortization of net gain (loss) included in net income (loss)		2,286		(480)		1,806		3,451		(725)		2,726
Total other comprehensive income (loss)	$	324,887	$	(67,552)	$	257,335	$	100,114	$	(21,130)	$	78,984
(Some amounts may not reconcile due to rounding)

	Three Months Ended June 30, 2019						Six Months Ended June 30, 2019
(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	$	86,524	$	(18,138)	$	68,386	$	198,965	$	(41,868)	$	157,097
URA(D) on securities - OTTI		(368)		77		(291)		(700)		147		(553)
Reclassification of net realized losses (gains) included in net income (loss)		7,394		(1,536)		5,858		5,862		(1,020)		4,842
Foreign currency translation adjustments		(9,465)		1,990		(7,475)		2,645		(556)		2,089
Reclassification of amortization of net gain (loss) included in net income (loss)		1,457		(306)		1,151		2,914		(612)		2,302
Total other comprehensive income (loss)	$	85,542	$	(17,913)	$	67,629	$	209,686	$	(43,909)	$	165,777
(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				Six Months Ended				Affected line item within the
	June 30,				June 30,				statements of operations and
AOCI component	2020		2019		2020		2019		comprehensive income (loss)
(Dollars in thousands)
URA(D) on securities	$	4,570	$	7,394	$	39,934	$	5,862	Other net realized capital gains (losses)
		(1,027)		(1,536)		(8,505)		(1,020)	Income tax expense (benefit)
	$	3,543	$	5,858	$	31,429	$	4,842	Net income (loss)
Benefit plan net gain (loss)	$	2,286	$	1,457	$	3,451	$	2,914	Other underwriting expenses
		(480)		(306)		(725)		(612)	Income tax expense (benefit)
	$	1,806	$	1,151	$	2,726	$	2,302	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:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Beginning balance of URA (D) on securities	$	(25,025)	$	31,483	$	124,612	$	(55,950)
Current period change in URA (D) of investments - temporary		247,093		74,244		97,455		161,939
Current period change in URA (D) of investments - non-credit OTTI		-		(291)		-		(553)
Ending balance of URA (D) on securities		222,068		105,436		222,068		105,436
Beginning balance of foreign currency translation adjustments		(15,367)		6,678		14,267		(2,886)
Current period change in foreign currency translation adjustments		8,436		(7,475)		(21,197)		2,089
Ending balance of foreign currency translation adjustments		(6,931)		(797)		(6,931)		(797)
Beginning balance of benefit plan net gain (loss)		(73,635)		(66,267)		(74,556)		(67,418)
Current period change in benefit plan net gain (loss)		1,806		1,151		2,726		2,302
Ending balance of benefit plan net gain (loss)		(71,829)		(65,116)		(71,829)		(65,116)
Ending balance of accumulated other comprehensive income (loss)	$	143,308	$	39,523	$	143,308	$	39,523

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Collateralized Reinsurance And Trust Agreements

6 Months Ended

Jun. 30, 2020

Collateralized Reinsurance And Trust Agreements [Abstract]

Collateralized Reinsurance And Trust Agreements

8. COLLATERALIZED 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 non-affiliated ceding companies. At June 30, 2020, the total amount on deposit in the trust account was $826,662 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. These reinsurance agreements expired in April 2018.

On November 18, 2014, the Company entered into a collateralized reinsurance agreement with Kilimanjaro 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 $500,000thousand of reinsurance coverage from earthquakes in the United States, Puerto Rico and Canada. These reinsurance agreements expired in November, 2019.

On December 1, 2015, the Company entered into two collateralized reinsurance agreements with Kilimanjaro 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.

On April 13, 2017, the Company entered into six collateralized reinsurance agreements with Kilimanjaro to provide the Company with annual aggregate catastrophe reinsurance coverage. The initial three agreements are four year reinsurance contracts which cover named storm and earthquake events. These agreements provide up to $225,000 thousand, $400,000 thousand and $325,000 thousand, respectively, of annual aggregate reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico and Canada. The subsequent three agreements are five year reinsurance contracts which cover named storm and earthquake events. These agreements provide up to $50,000 thousand, $75,000 thousand and $175,000 thousand, respectively, of annual aggregate reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico and Canada.

On April 30, 2018, the Company entered into four collateralized reinsurance agreements with Kilimanjaro to provide the Company with catastrophe reinsurance coverage. These agreements are multi-year reinsurance contracts which cover named storm and earthquake events. The first two agreements are four year reinsurance contracts which provide up to $62,500 thousand and $200,000 thousand, respectively, of annual aggregate reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico, the U.S. Virgin Islands and Canada. The remaining two agreements are five year reinsurance contracts which provide up to $62,500 thousand and $200,000 thousand, respectively, of annual aggregate reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico, the U.S. Virgin Islands and Canada.

On December 12, 2019, the Company entered into four collateralized reinsurance agreements with Kilimanjaro to provide the Company with catastrophe reinsurance coverage. These agreements are multi-year reinsurance contracts which cover named storm and earthquake events. The first two agreements are four year reinsurance contracts which provide up to $150,000 thousand and $275,000 thousand, respectively, of annual aggregate reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico, the U.S. Virgin Islands and Canada. The remaining two agreements are five year reinsurance contracts which provide up to $150,000 thousand and $275,000 thousand, respectively, of annual aggregate reinsurance coverage from named storms and earthquakes in the United State, Puerto Rico, the U.S. Virgin Islands and Canada.

Recoveries under these collateralized reinsurance agreements with Kilimanjaro are primarily dependent on estimated industry level insured losses from covered events, as well as, the geographic location of the events. The estimated industry level of insured losses is obtained from published estimates by an independent recognized authority on insured property losses. Currently, none of the published insured loss estimates for catastrophe events during the applicable covered periods of the various agreements have exceeded the single event retentions or aggregate retentions under the terms of the agreements that would result in a recovery.

Kilimanjaro has financed the various property catastrophe reinsurance coverages by issuing catastrophe bonds to unrelated, external investors. On April 24, 2014, Kilimanjaro issued $450,000 thousand of notes (“Series 2014-1 Notes”). The $450,000 thousand of Series 2014-1 Notes were fully redeemed on April 30, 2018 and are no longer outstanding. On November 18, 2014, Kilimanjaro issued $500,000 thousand of notes (“Series 2014-2 Notes”). The $450,000 thousand of Series 2014-2 Notes were fully redeemed in November 2019 and are no longer outstanding. On December 1, 2015, Kilimanjaro issued $625,000 thousand of notes (“Series 2015-1 Notes). On April 13, 2017, Kilimanjaro issued $950,000 thousand of notes (“Series 2017-1 Notes) and $300,000 thousand of notes (“Series 2017-2 Notes). On April 30, 2018, Kilimanjaro issued $262,500 thousand of notes (“Series 2018-1 Notes”) and $262,500 thousand of notes (“Series 2018-2 Notes”). On December 12, 2019 Kilimanjaro issued $425,000 thousand of notes (“Series 2019-1 Notes”) and $425,000 thousand of notes (“Series 2019-2 Notes’”). The proceeds from the issuance of the Notes listed above 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

6 Months Ended

Jun. 30, 2020

Senior Notes [Abstract]

Senior Notes

9. 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.

				June 30, 2020				December 31, 2019
				Consolidated				Consolidated
			Principal	Balance Sheet		Market		Balance Sheet		Market
(Dollars in thousands)	Date Issued	Date Due	Amounts	Amount		Value		Amount		Value
Senior notes	06/05/2014	06/01/2044	400,000	$	397,134	$	469,804	$	397,074	$	452,848

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				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Interest expense incurred	$	4,868	$	4,868	$	9,736	$	9,736

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Long Term Subordinated Notes

6 Months Ended

Jun. 30, 2020

Long Term Subordinated Notes [Abstract]

Long Term Subordinated Notes

10. 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.

June 30, 2020

December 31, 2019

Original

Consolidated

Consolidated

Principal

Maturity Date

Balance

Market

Balance

Market

(Dollars in thousands)

Date Issued

Amount

Scheduled

Final

Sheet Amount

Value

Sheet Amount

Value

Long term subordinated notes

04/26/2007

$

400,000

05/15/2037

05/01/2067

$

223,625

$

197,378

$

236,758

$

233,191

During the fixed rate interest period from May 3, 2007through May 14, 2017, interest was 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. 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 quarterly for periods from and including May 15, 2017. The reset quarterly interest rate for May 15, 2020 to August 16, 2020 is 2.78%.

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.

The Company repurchased and retired $11,483 thousand and $13,183 thousand of its outstanding long term subordinated notes during the three and six months ended June 30, 2020, respectively. The Company realized a gain of $2,034 thousand and $2,536 thousand from the repurchase of the long term subordinated notes during the three and six months ended June 30, 2020, respectively.

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				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Interest expense incurred	$	2,000	$	3,406	$	4,539	$	6,011

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Federal Home Loan Bank Membership

6 Months Ended

Jun. 30, 2020

Federal Home Loan Bank Membership [Abstract]

Federal Home Loan Bank Membership

11. FEDERAL HOME LOAN BANK MEMBERSHIP

Effective August 15, 2019, Everest Re became a member of the Federal Home Loan Bank (“FHLB”) organization, which allows Everest Re to borrow up to 10% of its statutory admitted assets. As of June 30, 2020, Everest Re had admitted assets of approximately $13,435,683 thousand which provides borrowing capacity of up to approximately $1,343,568 thousand. Through June 30, 2020, Everest Re had no borrowings through the FHLB.

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Leases

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Leases

12. LEASES

Effective January 1, 2019, the Company adopted ASU 2016-02 and ASU 2018-11 which outline new guidance on the accounting for leases. The Company enters into lease agreements for real estate that is primarily used for office space in the ordinary course of business. These leases are accounted for as operating leases, whereby lease expense is recognized on a straight-line basis over the term of the lease. Most leases include an option to extend or renew the lease term. The exercise of the renewal is at the Company’s discretion. The operating lease liability includes lease payments related to options to extend or renew the lease term if the Company is reasonably certain of exercise those options. The Company, in determining the present value of lease payments utilizes either the rate implicit in the lease if that rate is readily determinable or the Company’s incremental secured borrowing rate commensurate with terms of the underlying lease.

Supplemental information related to operating leases is as follows for the periods indicated:

	Three Months Ended				Six Months Ended
(Dollars in thousands)	June 30,				June 30,
	2020		2019		2020		2019
Lease expense incurred:
Operating lease cost	$	7,424	$	4,793	$	14,672	$	9,355

(Dollars in thousands)	At June 30, 2020		At December 31, 2019
Operating lease right of use assets	$	143,986	$	152,978
Operating lease liabilities		155,440		160,387

	Three Months Ended				Six Months Ended
(Dollars in thousands)	June 30,				June 30,
	2020		2019		2020		2019
Operating cash flows from operating leases	$	(4,501)	$	(4,314)	$	(8,858)	$	(8,617)

	At June 30, 2020			At December 31, 2019
Weighted average remaining operating lease term	12.6 years		12.8 years
Weighted average discount rate on operating leases	4.02	%	3.91		%

Maturities of the existing lease liabilities are expected to occur as follows:

(Dollars in thousands)
Remainder of 2020	$	9,120
2021		16,181
2022		18,615
2023		18,202
2024		18,208
2025		15,217
Thereafter		116,149
Undiscounted lease payments		211,692
Less: present value adjustment		56,252
Total operating lease liability	$	155,440

On July 2, 2019, the Company entered into a lease agreement to relocate its corporate offices from Liberty Corner, New Jersey to a corporate complex in Warren, New Jersey. The new lease, which covers approximately 315,000 square feet of office space, will be effective October 1, 2019 and runs through 2036. The initial base rent payment of the lease will be approximately $650 thousand per month or $7,800 thousand per year. The Company expects to relocate the existing operations and employees of the Liberty Corner, New Jersey facility to the new corporate complex during 2021.

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Segment Reporting

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Reporting

13. SEGMENT REPORTING

The Reinsurance operation writes worldwide property and casualty reinsurance and specialty lines of business, on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies. Business is written in the United States as well as through branches in Canada and Singapore. The Insurance operation writes property and casualty insurance directly and through brokers, surplus lines brokers and general agents within the United States.

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.

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
Reinsurance	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Gross written premiums	$	1,124,895	$	1,014,434	$	2,433,089	$	2,167,545
Net written premiums		992,750		837,913		2,106,984		1,813,912
Premiums earned	$	1,062,833	$	958,222	$	2,069,868	$	1,855,500
Incurred losses and LAE		630,658		581,281		1,313,366		1,134,995
Commission and brokerage		292,286		258,563		553,187		495,528
Other underwriting expenses		26,599		25,360		56,446		49,416
Underwriting gain (loss)	$	113,290	$	93,018	$	146,869	$	175,561

	Three Months Ended				Six Months Ended
Insurance	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Gross written premiums	$	713,352	$	673,603	$	1,380,123	$	1,205,374
Net written premiums		508,801		481,952		1,033,275		898,196
Premiums earned	$	476,127	$	417,401	$	963,097	$	790,577
Incurred losses and LAE		345,174		261,941		691,979		504,323
Commission and brokerage		63,413		58,212		125,616		109,465
Other underwriting expenses		67,532		57,991		138,893		112,317
Underwriting gain (loss)	$	8	$	39,257	$	6,609	$	64,472

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)	2020		2019		2020		2019
Underwriting gain (loss)	$	113,298	$	132,275	$	153,478	$	240,033
Net investment income		35,153		90,709		109,354		175,243
Net realized capital gains (losses)		(479,360)		142,563		(222,493)		277,619
Corporate expense		(3,514)		(2,519)		(7,235)		(4,170)
Interest, fee and bond issue cost amortization expense		(6,922)		(9,684)		(14,382)		(19,512)
Other income (expense)		(5,122)		(5,055)		(9,620)		(5,785)
Income (loss) before taxes	$	(346,467)	$	348,289	$	9,102	$	663,428

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)	2020		2019		2020		2019
Canada gross written premiums	$	71,021	$	47,206	$	134,658	$	86,256

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

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Related-Party Transactions

6 Months Ended

Jun. 30, 2020

Related-Party Transactions [Abstract]

Related-Party Transactions

14. RELATED-PARTY TRANSACTIONS

Parent

Group entered into a $300,000 thousand long term note agreement with Everest Re as of December 17, 2019. The note will pay interest annually at a rate of 1.69% and is scheduled to mature in December, 2028. This transaction is presented as a Note Receivable – Affiliated in the Consolidated Balance Sheet of Holdings. The Company recognized interest income related to this long term note of $1,281 thousand and $0 thousand for the three months ended June 30, 2020 and 2019, respectively and $2,563 thousand and $0 thousand for the six months ended June 30, 2020 and 2019, respectively.

Group entered into a $250,000 thousand long term promissory note agreement with Holdings as of December 31, 2014. The note was repaid in December 2018.

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
05/22/2020	2,000,000
	32,000,000

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 has reported the 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				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Dividends received on preferred stock of affiliate	$	7,758	$	7,758	$	15,516	$	15,516

Affiliated Companies

Effective December 31, 2018, Holdings entered into a $300,000 thousand long-term promissory note agreement with Bermuda Re. The note was repaid in May, 2019. Interest expense of $1,356 thousand and $3,658 thousand was recorded by Holdings for the three and six months ended June 30, 2019, respectively.

Effective October 1, 2018, Holdings Ireland made a capital contribution of Global Services, an affiliated entity, to Holdings. Global Services had an equity value of $227,253 thousand at the time of contribution and that value is classified as additional paid in capital in the Company’s consolidated balance sheets.

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)
						Single
		Percent		Assuming		Occurrence		Aggregate
Coverage Period	Ceding Company	Ceded		Company	Type of Business	Limit		Limit
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
01/01/2015-12/31/2016	Everest Re	50.0	%	Bermuda Re	property / casualty business	162,500		325,000
01/01/2017-12/31/2017	Everest Re	60.0	%	Bermuda Re	property / casualty business	219,000		438,000
01/01/2010-12/31/2010	Everest Re- Canadian Branch	60.0	%	Bermuda Re	property business	350,000	(1)	-
01/01/2011-12/31/2011	Everest Re- Canadian Branch	60.0	%	Bermuda Re	property business	350,000	(1)	-
01/01/2012-12/31/2012	Everest Re- Canadian Branch	75.0	%	Bermuda Re	property / casualty business	206,250	(1)	412,500	(1)
01/01/2013-12/31/2013	Everest Re- Canadian Branch	75.0	%	Bermuda Re	property / casualty business	150,000	(1)	412,500	(1)
01/01/2014-12/31/2017	Everest Re- Canadian Branch	75.0	%	Bermuda Re	property / casualty business	262,500	(1)	412,500	(1)
01/01/2012-12/31/2017	Everest Canada	80.0	%	Everest Re-   Canadian Branch	property business	-		-
(1) Amounts shown are Canadian dollars.

Effective January 1, 2018, Everest Re entered into a twelve month whole account aggregate stop loss reinsurance contract (“stop loss agreement”) with Bermuda Re. The stop loss agreement provides coverage for ultimate net losses on applicable net earned premiums above a retention level, subject to certain other coverage limits and conditions. The stop loss agreement was most recently renewed effective January 1, 2020.

In addition, Everest Re entered into a property catastrophe excess of loss reinsurance contract with Bermuda Re, effective January 1, 2019. The contract provides $100,000 thousand of reinsurance coverage for property catastrophe losses above certain attachment points. This agreement expired on December 31, 2019 and was not renewed.

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

(Dollars in thousands)
Effective	Transferring	Assuming		% of Business or		Covered Period
Date	Company	Company		Amount of Transfer		of Transfer
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
12/31/2017	Everest Re	Bermuda Re	$	970,000		All years

On December 31, 2017, the Company entered into a LPT agreement with Bermuda Re. The LPT agreement covers subject loss reserves of $2,336,242 thousand for accident years 2017 and prior. As a result of the LPT agreement, the Company transferred $1,000,000 thousand of cash and fixed maturity securities and transferred $970,000 thousand of loss reserves to Bermuda Re. As part of the LPT agreement, Bermuda Re will provide an additional $500,000 thousand of adverse development coverage on the subject loss reserves.

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				Six Months Ended
Bermuda Re	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Ceded written premiums	$	31,669	$	19,534	$	62,169	$	71,007
Ceded earned premiums		31,813		16,598		62,313		69,122
Ceded losses and LAE		12,208		(3,417)		(9,951)		8,316

	Three Months Ended				Six Months Ended
Everest International	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Ceded written premiums	$	-	$	-	$	-	$	-
Ceded earned premiums		-		-		-		-
Ceded losses and LAE		(7)		(46)		16		(36)

	Three Months Ended				Six Months Ended
Everest Canada	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Assumed written premiums	$	(235)	$	-	$	1	$	-
Assumed earned premiums		(46)		-		(7)		-
Assumed losses and LAE		(948)		2,296		650		695

	Three Months Ended				Six Months Ended
Lloyd's Syndicate 2786	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Assumed written premiums	$	630	$	483	$	(2,401)	$	(8,726)
Assumed earned premiums		639		1,596		(2,183)		(17,231)
Assumed losses and LAE		(1,438)		4,391		(624)		(3,527)

In 2013, Group established Mt. Logan Re, which is a Class 3 insurer based in Bermuda. Mt. Logan Re then established separate segregated accounts for its business activity, which 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				Six Months Ended
Mt. Logan Re Segregated Accounts	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Ceded written premiums	$	41,864	$	51,289	$	137,214	$	114,512
Ceded earned premiums		60,412		61,812		140,267		106,634
Ceded losses and LAE		36,835		30,159		74,300		64,781
Assumed written premiums		-		-		-		-
Assumed earned premiums		-		-		-		-
Assumed losses and LAE		-		-		-		-

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Retirement Benefits

6 Months Ended

Jun. 30, 2020

Retirement Benefits [Abstract]

Retirement Benefits

15.  RETIREMENT BENEFITS

The Company maintains both qualified and non-qualified defined benefit pension plans for its U.S. employees employed prior to April 1, 2010. Generally, the Company computes the benefits based on average earnings over a period prescribed by the plans and credited length of service. The Company’s non-qualified defined benefit pension plan provided compensating pension benefits for participants whose benefits have been curtailed under the qualified plan due to Internal Revenue Code limitations. Effective January 1, 2018, participants of the Company’s non-qualified defined benefit pension plan may no longer accrue additional service benefits.

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

Pension Benefits	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Service cost	$	2,041	$	2,276	$	6,052	$	4,553
Interest cost		2,563		2,930		5,046		5,860
Expected return on plan assets		(5,197)		(5,016)		(10,394)		(10,031)
Amortization of net (income) loss		2,462		1,601		3,675		3,203
Settlement charge		-		104		-		208
Net periodic benefit cost	$	1,869	$	1,895	$	4,379	$	3,793

Other Benefits	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Service cost	$	311	$	286	$	452	$	573
Interest cost		215		295		429		590
Amortization of prior service cost		(176)		(144)		(224)		(289)
Net periodic benefit cost	$	350	$	437	$	657	$	874
(Some amounts may not reconcile due to rounding.)

The service cost component of net periodic benefit costs is included within other underwriting expenses on the consolidated statement of operations and comprehensive income (loss). In accordance with ASU 2017-07, other staff compensation costs are also primarily recorded within this line item.

The Company did notmake any contributions to the qualified pension benefit plan for the three and six months ended June 30, 2020 and 2019, respectively.

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Income Taxes

6 Months Ended

Jun. 30, 2020

Income Taxes [Abstract]

Income Taxes

16.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.

The Company generally applies the estimated annual effective tax rate approach for calculating its tax provision for interim periods as prescribed by ASC 740-270, Interim Reporting. Under the estimated annual effective tax rate approach, the estimated annual effective tax rate is applied to the interim year-to-date pre-tax income/loss to determine the income tax expense or benefit for the year-to-date period.  The tax expense or benefit for the quarter represents the difference between the year-to-date 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/loss and effective tax rate..

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Subsequent Events

6 Months Ended

Jun. 30, 2020

Subsequent Events [Abstract]

Subsequent Events

17. SUBSEQUENT EVENTS

The Company has evaluated known recognized and non-recognized subsequent events. In late July and early August 2020, Hurricane Isaias impacted the United States and the Caribbean. Also, on August 4, 2020, an explosion occurred in Beirut, Lebanon which impacted a port and surrounding area. Due to the recentness of these events, the Company is unable to estimate the amount of losses at this time. However, the Company anticipates that the losses from these events will adversely impact third quarter 2020 financial statements.

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Revisions To Financial Statements

6 Months Ended

Jun. 30, 2020

Revisions To Financial Statements [Abstract]

Revisions To Financial Statements

18.REVISIONS TO FINANCIAL STATEMENTS

In preparing third quarter 2019 financial statements, the Company identified errors in the handling of foreign exchange related to premium funds held from reinsureds. Although management determined that the impact of the foreign exchange differences were not material to prior period financial statements, the impact of recording the cumulative difference would have significantly impacted results within the third quarter 2019. As a result, prior period balances have been revised in the applicable financial statements and corresponding footnotes to correct the foreign exchange adjustments.

Management assessed the materiality of this change within prior period financial statements based upon SEC Staff Accounting Bulletin Number 99, Materiality, which is since codified in Accounting Standards Codification ("ASC") 250, Accounting Changes and Error Corrections. The prior period comparative financial statements that are presented herein have been revised.

The following tables present line items for prior period financial statements that have been affected by the revision. For these line items, the tables detail the amounts as previously reported, the impact upon those line items due to the revision, and the amounts as currently revised within the financial statements.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE		Three Months Ended June 30, 2019						Six Months Ended June 30, 2019
INCOME (LOSS):		As Previously		Impact of				As Previously		Impact of
		Reported		Revisions		As Revised		Reported		Revisions		As Revised
(Dollars in thousands)
Revenues:
Other income (expense)		(3,812)		(1,243)		(5,055)		(5,026)		(759)		(5,785)
Total revenues	$	1,605,083	$	(1,243)	$	1,603,840	$	3,093,913	$	(759)	$	3,093,154
INCOME (LOSS) BEFORE TAXES	$	349,532	$	(1,243)	$	348,289	$	664,187	$	(759)	$	663,428
Income tax expense (benefit)		67,628		(261)		67,367		131,057		(159)		130,898
NET INCOME (LOSS)	$	281,904	$	(982)	$	280,922	$	533,130	$	(600)	$	532,530
COMPREHENSIVE INCOME (LOSS)	$	349,533	$	(982)	$	348,551	$	698,907	$	(600)	$	698,307

CONSOLIDATED STATEMENTS OF	Six Months Ended June 30, 2019
CHANGES IN STOCKHOLDER'S EQUITY	As Previously		Impact of
	Reported		Revisions		As Revised
(Dollars in thousands)
RETAINED EARNINGS:
Balance, January 1	$	4,070,604	$	(7,908)	$	4,062,696
Net income (loss)		251,226		382		251,608
Balance, March 31		4,321,830		(7,524)		4,314,306
Net income (loss)		281,904		(982)		280,922
Balance, June 30		4,603,734		(8,507)		4,595,227
TOTAL STOCKHOLDER'S EQUITY, June 30	$	5,743,746	$	(8,507)	$	5,735,239

CONSOLIDATED STATEMENTS OF CASH FLOWS	Six Months Ended June 30, 2019
	As Previously		Impact of
	Reported		Revisions		As Revised
(Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	533,130	$	(600)	$	532,530
Decrease (increase) in funds held by reinsureds, net		(14,688)		759		(13,929)
Decrease (increase) in income taxes		214,830		(159)		214,671

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Investments (Tables)

6 Months Ended

Jun. 30, 2020

Investments [Abstract]

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

	At June 30, 2020
	Amortized		Allowances for		Unrealized		Unrealized		Market
(Dollars in thousands)	Cost		Credit Losses		Appreciation		Depreciation		Value
Fixed maturity securities
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	741,244	$	-	$	31,740	$	-	$	772,984
Obligations of U.S. states and political  subdivisions		507,475		-		27,597		(3,789)		531,283
Corporate securities		2,935,665		(19,398)		135,213		(51,922)		2,999,558
Asset-backed securities		991,779		-		14,504		(21,500)		984,783
Mortgage-backed securities
Commercial		348,329		-		33,506		(788)		381,047
Agency residential		604,360		-		33,190		(349)		637,201
Non-agency residential		509		-		-		(3)		506
Foreign government securities		636,346		-		38,578		(5,034)		669,890
Foreign corporate securities		892,075		(527)		57,601		(7,024)		942,125
Total fixed maturity securities	$	7,657,782	$	(19,925)	$	371,929	$	(90,409)	$	7,919,377

	At December 31, 2019
	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	$	768,374	$	10,128	$	(987)	$	777,515	$	-
Obligations of U.S. states and political  subdivisions		506,347		29,651		(87)		535,911		-
Corporate securities		2,777,097		70,898		(26,438)		2,821,557		245
Asset-backed securities		761,607		5,659		(1,309)		765,957		-
Mortgage-backed securities
Commercial		311,961		17,242		(154)		329,049		-
Agency residential		625,612		19,395		(320)		644,687		-
Non-agency residential		1,638		-		-		1,638		-
Foreign government securities		646,149		18,908		(7,050)		658,007		27
Foreign corporate securities		935,640		31,257		(9,139)		957,758		333
Total fixed maturity securities	$	7,334,425	$	203,138	$	(45,484)	$	7,492,079	$	605

^(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 June 30, 2020				At December 31, 2019
	Amortized		Market		Amortized		Market
(Dollars in thousands)	Cost		Value		Cost		Value
Fixed maturity securities – available for sale
Due in one year or less	$	716,996	$	714,607	$	569,506	$	563,730
Due after one year through five years		2,773,635		2,866,814		2,919,966		2,963,903
Due after five years through ten years		1,615,652		1,735,868		1,541,695		1,602,642
Due after ten years		606,522		598,551		602,440		620,473
Asset-backed securities		991,779		984,783		761,607		765,957
Mortgage-backed securities
Commercial		348,329		381,047		311,961		329,049
Agency residential		604,360		637,201		625,612		644,687
Non-agency residential		509		506		1,638		1,638
Total fixed maturity securities	$	7,657,782	$	7,919,377	$	7,334,425	$	7,492,079

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Increase (decrease) during the period between the market value and cost of investments carried at market value, and deferred taxes thereon:
Fixed maturity securities	$	311,927	$	93,919	$	123,520	$	204,828
Fixed maturity securities, other-than-temporary impairment		-		(368)		-		(700)
Change in unrealized appreciation (depreciation), pre-tax		311,927		93,551		123,520		204,128
Deferred tax benefit (expense)		(64,834)		(19,675)		(26,065)		(42,889)
Deferred tax benefit (expense), other-than-temporary impairment		-		77		-		147
Change in unrealized appreciation (depreciation),  net of deferred taxes, included in stockholder's equity	$	247,093	$	73,953	$	97,455	$	161,386

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

	Duration of Unrealized Loss at June 30, 2020 By Security Type
	Less than 12 months				Greater than 12 months				Total
			Gross				Gross				Gross
	Market		Unrealized		Market		Unrealized		Market		Unrealized
(Dollars in thousands)	Value		Depreciation		Value		Depreciation		Value		Depreciation
Fixed maturity securities -  available for sale
Obligations of U.S. states and  political subdivisions		70,056		(3,564)		3,331		(225)		73,387		(3,789)
Corporate securities		423,967		(20,116)		122,165		(31,806)		546,132		(51,922)
Asset-backed securities		437,211		(16,250)		129,870		(5,250)		567,081		(21,500)
Mortgage-backed securities
Commercial		31,984		(756)		3,303		(32)		35,287		(788)
Agency residential		23,621		(342)		1,166		(7)		24,787		(349)
Non-agency residential		161		(2)		344		(1)		505		(3)
Foreign government securities		51,453		(506)		41,802		(4,528)		93,255		(5,034)
Foreign corporate securities		90,660		(2,151)		38,483		(4,873)		129,143		(7,024)
Total fixed maturity securities	$	1,129,113	$	(43,687)	$	340,464	$	(46,722)	$	1,469,577	$	(90,409)

	Duration of Unrealized Loss at December 31, 2019 By Security Type
	Less than 12 months				Greater than 12 months				Total
			Gross				Gross				Gross
	Market		Unrealized		Market		Unrealized		Market		Unrealized
(Dollars in thousands)	Value		Depreciation		Value		Depreciation		Value		Depreciation
Fixed maturity securities -  available for sale
U.S. Treasury securities and  obligations of U.S. government  agencies and corporations	$	8,997	$	(141)	$	203,780	$	(846)	$	212,777	$	(987)
Obligations of U.S. states and  political subdivisions		4,600		(38)		4,518		(49)		9,118		(87)
Corporate securities		334,973		(5,186)		230,679		(21,252)		565,652		(26,438)
Asset-backed securities		159,695		(887)		76,351		(422)		236,046		(1,309)
Mortgage-backed securities
Commercial		13,083		(87)		16,374		(67)		29,457		(154)
Agency residential		19,019		(82)		17,147		(238)		36,166		(320)
Non-agency residential		-		-		690		-		690		-
Foreign government securities		113,256		(858)		109,953		(6,192)		223,209		(7,050)
Foreign corporate securities		105,551		(1,260)		121,710		(7,879)		227,261		(9,139)
Total fixed maturity securities	$	759,174	$	(8,539)	$	781,202	$	(36,945)	$	1,540,376	$	(45,484)

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

	Duration of Unrealized Loss at June 30, 2020 By Maturity
	Less than 12 months				Greater than 12 months				Total
			Gross				Gross				Gross
	Market		Unrealized		Market		Unrealized		Market		Unrealized
(Dollars in thousands)	Value		Depreciation		Value		Depreciation		Value		Depreciation
Fixed maturity securities
Due in one year or less	$	32,323	$	(473)	$	52,176	$	(8,444)	$	84,499	$	(8,917)
Due in one year through five years		340,168		(12,125)		94,125		(6,849)		434,293		(18,974)
Due in five years through ten years		154,542		(6,913)		2,842		(659)		157,384		(7,572)
Due after ten years		109,103		(6,826)		56,638		(25,480)		165,741		(32,306)
Asset-backed securities		437,211		(16,250)		129,870		(5,250)		567,081		(21,500)
Mortgage-backed securities		55,766		(1,100)		4,813		(40)		60,579		(1,140)
Total fixed maturity securities	$	1,129,113	$	(43,687)	$	340,464	$	(46,722)	$	1,469,577	$	(90,409)

	Duration of Unrealized Loss at December 31, 2019 By Maturity
	Less than 12 months				Greater than 12 months				Total
			Gross				Gross				Gross
	Market		Unrealized		Market		Unrealized		Market		Unrealized
(Dollars in thousands)	Value		Depreciation		Value		Depreciation		Value		Depreciation
Fixed maturity securities
Due in one year or less	$	34,542	$	(1,067)	$	188,755	$	(6,411)	$	223,297	$	(7,478)
Due in one year through five years		226,521		(2,554)		357,728		(11,562)		584,249		(14,116)
Due in five years through ten years		251,967		(3,292)		43,129		(6,785)		295,096		(10,077)
Due after ten years		54,347		(570)		81,028		(11,460)		135,375		(12,030)
Asset-backed securities		159,695		(887)		76,351		(422)		236,046		(1,309)
Mortgage-backed securities		32,102		(169)		34,211		(305)		66,313		(474)
Total fixed maturity securities	$	759,174	$	(8,539)	$	781,202	$	(36,945)	$	1,540,376	$	(45,484)

Summary Of Components Of Net Investment Income

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Fixed maturities	$	74,897	$	65,374	$	148,985	$	132,428
Equity securities		2,024		2,319		3,616		3,750
Short-term investments and cash		578		3,169		2,148		5,905
Other invested assets
Limited partnerships		(40,465)		15,116		(33,469)		23,171
Dividends from preferred shares of affiliate		7,758		7,758		15,516		15,516
Other		(2,962)		3,299		(16,034)		6,279
Gross investment income before adjustments		41,830		97,035		120,762		187,049
Funds held interest income (expense)		901		1,445		4,158		4,326
Interest income from Parent		1,281		-		2,563		-
Gross investment income		44,012		98,480		127,483		191,375
Investment expenses		(8,859)		(7,771)		(18,129)		(16,132)
Net investment income	$	35,153	$	90,709	$	109,354	$	175,243
(Some amounts may not reconcile due to rounding.)

Summary Of Components Of Net Realized Capital Gains (Losses)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Fixed maturity securities, market value:
Allowances for credit losses	$	(7,826)	$	-	$	(19,925)	$	-
Other-than-temporary impairments		-		(4,929)		-		(7,219)
Gains (losses) from sales		1,963		(2,313)		(18,974)		1,113
Fixed maturity securities, fair value:
Gains (losses) from sales		-		356		-		356
Gains (losses) from fair value adjustments		(272)		-		(1,395)		13
Equity securities, fair value:
Gains (losses) from sales		16,274		(1,314)		(11,328)		3,730
Gains (losses) from fair value adjustments		148,205		25,829		26,536		103,675
Other invested assets		1,292		(152)		(1,035)		244
Other invested assets, fair value:
Gains (losses) from fair value adjustments		(639,058)		125,024		(196,579)		175,651
Short-term investment gains (losses)		62		62		207		56
Total net realized capital gains (losses)	$	(479,360)	$	142,563	$	(222,493)	$	277,619

	Roll Forward of Allowance for Credit Losses
	Three Months Ended June 30, 2020								Six Months Ended June 30, 2020
			Foreign		Foreign						Foreign		Foreign
	Corporate		Government		Corporate				Corporate		Government		Corporate
	Securities		Securities		Securities		Total		Securities		Securities		Securities		Total
Beginning Balance	$	(11,468)	$	(70)	$	(561)	$	(12,099)	$	-	$	-	$	-	$	-
Credit losses on securities where credit
losses were not previously recorded		(10,355)		-		-		(10,355)		(21,823)		(70)		(561)		(22,454)
Increases in allowance on previously
impaired securities		(555)		-		(211)		(766)		(555)		-		(211)		(766)
Decreases in allowance on previously
impaired securities		1,238		-		116		1,354		1,238		-		116		1,354
Reduction in allowance due to disposals		1,742		70		129		1,941		1,742		70		129		1,941
Balance as of June 30, 2020	$	(19,398)	$	-	$	(527)	$	(19,925)	$	(19,398)	$	-	$	(527)	$	(19,925)

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Proceeds from sales of fixed maturity securities	$	173,479	$	403,419	$	337,723	$	2,007,308
Gross gains from sales		8,755		3,133		10,601		11,237
Gross losses from sales		(6,792)		(5,090)		(29,575)		(9,768)
Proceeds from sales of equity securities	$	8,842	$	79,735	$	213,003	$	148,973
Gross gains from sales		18,172		2,577		20,753		8,248
Gross losses from sales		(1,898)		(3,891)		(32,081)		(4,518)

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Reserves For Losses And LAE (Tables)

6 Months Ended

Jun. 30, 2020

Reserves For Losses And LAE [Abstract]

Summary Of Activity In The Reserve For Losses And LAE

	Six Months Ended June 30,
(Dollars in thousands)		2020		2019
Gross reserves beginning of period	$	10,209,519	$	10,167,018
Less reinsurance recoverables		(4,215,348)		(4,697,543)
Net reserves beginning of period		5,994,171		5,469,475
Incurred related to:
Current year		2,006,988		1,615,277
Prior years		(1,643)		24,041
Total incurred losses and LAE		2,005,345		1,639,318
Paid related to:
Current year		474,372		391,381
Prior years		1,025,866		1,144,204
Total paid losses and LAE		1,500,238		1,535,585
Foreign exchange/translation adjustment and cumulative adjustment due to adoption of ASU 2016-13		(26,906)		228
Net reserves end of period		6,472,371		5,573,437
Plus reinsurance recoverables		3,910,952		4,574,975
Gross reserves end of period	$	10,383,323	$	10,148,412
(Some amounts may not reconcile due to rounding.)

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Fair Value (Tables)

6 Months Ended

Jun. 30, 2020

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)	June 30, 2020		(Level 1)		(Level 2)		(Level 3)
Assets:
Fixed maturities, market value
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	772,984	$	-	$	772,984	$	-
Obligations of U.S. States and political subdivisions		531,283		-		531,283		-
Corporate securities		2,999,558		-		2,348,372		651,186
Asset-backed securities		984,783		-		689,053		295,730
Mortgage-backed securities
Commercial		381,047		-		381,047		-
Agency residential		637,201		-		637,201		-
Non-agency residential		506		-		506		-
Foreign government securities		669,890		-		669,890		-
Foreign corporate securities		942,125		-		935,851		6,274
Total fixed maturities, market value		7,919,377		-		6,966,187		953,190
Fixed maturities, fair value		4,431		-		-		4,431
Equity securities, fair value		789,819		740,197		39,745		9,877
Other invested assets, fair value		1,786,003		-		-		1,786,003

			Fair Value Measurement Using:
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
(Dollars in thousands)	December 31, 2019		(Level 1)		(Level 2)		(Level 3)
Assets:
Fixed maturities, market value
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	777,515	$	-	$	777,515	$	-
Obligations of U.S. States and political subdivisions		535,911		-		535,911		-
Corporate securities		2,821,557		-		2,274,618		546,939
Asset-backed securities		765,957		-		612,316		153,641
Mortgage-backed securities
Commercial		329,049		-		329,049		-
Agency residential		644,687		-		644,687		-
Non-agency residential		1,638		-		1,638		-
Foreign government securities		658,007		-		658,007		-
Foreign corporate securities		957,758		-		956,007		1,751
Total fixed maturities, market value		7,492,079		-		6,789,748		702,331
Fixed maturities, fair value		5,826		-		-		5,826
Equity securities, fair value		764,049		719,548		44,501		-
Other invested assets, fair value		1,982,582		-		-		1,982,582

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

	Total Fixed Maturities, Market Value
	Three Months Ended June 30, 2020								Six Months Ended June 30, 2020
	Corporate		Asset		Foreign				Corporate		Foreign		Foreign
(Dollars in thousands)	Securities		Backed Securities		Corporate		Total		Securities		Corporate		Corporate		Total
Beginning balance	$	642,432	$	238,631	$	-	$	881,063	$	546,939	$	153,641	$	1,751	$	702,331
Total gains or (losses) (realized/unrealized)
Included in earnings		(248)		121		(97)		(224)		(462)		125		(97)		(434)
Included in other comprehensive  income (loss)		(549)		18,092		(40)		17,503		(3,906)		2,210		(40)		(1,736)
Purchases, issuances and settlements		14,346		38,886		5,434		58,666		113,410		139,754		3,683		256,847
Transfers in and/or (out) of Level 3		(4,795)		-		977		(3,818)		(4,795)		-		977		(3,818)
Ending balance	$	651,186	$	295,730	$	6,274	$	953,190	$	651,186	$	295,730	$	6,274	$	953,190
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	$	-	$	-	$	-	$	-	$	(539)	$	-	$	-	$	(539)
(Some amounts may not reconcile due to rounding.)

	Total Fixed Maturities, Market Value
	Three Months Ended June 30, 2019						Six Months Ended June 30, 2019
	Corporate		Foreign				Corporate		Foreign
(Dollars in thousands)	Securities		Corporate		Total		Securities		Corporate		Total
Beginning balance	$	367,178	$	7,298	$	374,476	$	376,250	$	7,744	$	383,994
Total gains or (losses) (realized/unrealized)
Included in earnings		(2,528)		(238)		(2,766)		2,330		(119)		2,211
Included in other comprehensive income (loss)		1,870		-		1,870		2,444		-		2,444
Purchases, issuances and settlements		101,732		(4,967)		96,765		89,686		(5,532)		84,154
Transfers in and/or (out) of Level 3		3,977		-		3,977		1,519		-		1,519
Ending balance	$	472,229	$	2,093	$	474,322	$	472,229	$	2,093	$	474,322
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.)

	Total Fixed Maturities, Fair Value
	Three Months Ended June 30, 2020				Six Months Ended June 30, 2020
	Foreign				Foreign
(Dollars in thousands)	Corporate		Total		Corporate		Total
Beginning balance fixed maturities at fair value	$	4,703	$	4,703	$	5,826	$	5,826
Total gains or (losses) (realized/unrealized)
Included in earnings		(272)		(272)		(1,395)		(1,395)
Included in other comprehensive income (loss)		-		-		-		-
Transfers in and/or (out) of Level 3		-		-		-		-
Ending balance	$	4,431	$	4,431	$	4,431	$	4,431
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.)

	Total Fixed Maturities, Fair Value
	Three Months Ended June 30, 2019				Six Months Ended June 30, 2019
	Foreign				Foreign
(Dollars in thousands)	Corporate		Total		Corporate		Total
Beginning balance fixed maturities at fair value	$	2,350	$	2,350	$	2,337	$	2,337
Total gains or (losses) (realized/unrealized)
Included in earnings		356		356		369		369
Included in other comprehensive income (loss)		-		-		-		-
Purchases, issuances and settlements		(2,706)		(2,706)		(2,706)		(2,706)
Transfers in and/or (out) of Level 3		-		-		-		-
Ending balance	$	-	$	-	$	-	$	-
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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Equity securities
Balance, beginning of period	$	-	$	-	$	-	$	-
Total (gains) or losses (realized/unrealized)
Included in earnings		-		-		-		-
Included in other comprehensive income (loss)		-		-		-		-
Purchases, issuances and settlements		9,877		-		9,877		-
Transfers in and/or (out) of Level 3		-		-		-		-
Balance, end of period	$	9,877	$	-	$	9,877	$	-
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 liabilities still held at the reporting date	$	-	$	-	$	-	$	-
(Some amounts may not reconcile due to rounding.)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Other invested assets, fair value:
Beginning balance	$	2,425,061	$	1,767,963	$	1,982,582	$	1,717,336
Total gains or (losses) (realized/unrealized)
Included in earnings		(639,058)		125,025		(196,579)		175,652
Included in other comprehensive income (loss)		-		-		-		-
Purchases, issuances and settlements		-		-		-		-
Transfers in and/or (out) of Level 3		-		-		-		-
Ending balance	$	1,786,003	$	1,892,988	$	1,786,003	$	1,892,988
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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Commitments And Contingencies (Tables)

6 Months Ended

Jun. 30, 2020

Commitments And Contingencies [Abstract]

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

	At June 30, 2020		At December 31, 2019
(Dollars in thousands)
The Prudential	$	141,186	$	141,703
Unaffiliated life insurance company		33,778		35,082

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Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2020

Comprehensive Income (Loss) [Abstract]

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

	Three Months Ended June 30, 2020						Six Months Ended June 30, 2020
(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	$	307,356		(63,806)	$	243,550	$	83,586		(17,560)	$	66,026
URA(D) on securities - OTTI		-		-		-		-		-		-
Reclassification of net realized losses (gains) included in net income (loss)		4,570		(1,027)		3,543		39,934		(8,505)		31,429
Foreign currency translation adjustments		10,675		(2,239)		8,436		(26,857)		5,660		(21,197)
Reclassification of amortization of net gain (loss) included in net income (loss)		2,286		(480)		1,806		3,451		(725)		2,726
Total other comprehensive income (loss)	$	324,887	$	(67,552)	$	257,335	$	100,114	$	(21,130)	$	78,984
(Some amounts may not reconcile due to rounding)

	Three Months Ended June 30, 2019						Six Months Ended June 30, 2019
(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	$	86,524	$	(18,138)	$	68,386	$	198,965	$	(41,868)	$	157,097
URA(D) on securities - OTTI		(368)		77		(291)		(700)		147		(553)
Reclassification of net realized losses (gains) included in net income (loss)		7,394		(1,536)		5,858		5,862		(1,020)		4,842
Foreign currency translation adjustments		(9,465)		1,990		(7,475)		2,645		(556)		2,089
Reclassification of amortization of net gain (loss) included in net income (loss)		1,457		(306)		1,151		2,914		(612)		2,302
Total other comprehensive income (loss)	$	85,542	$	(17,913)	$	67,629	$	209,686	$	(43,909)	$	165,777
(Some amounts may not reconcile due to rounding)

Reclassification From Accumulated Other Comprehensive Income

	Three Months Ended				Six Months Ended				Affected line item within the
	June 30,				June 30,				statements of operations and
AOCI component	2020		2019		2020		2019		comprehensive income (loss)
(Dollars in thousands)
URA(D) on securities	$	4,570	$	7,394	$	39,934	$	5,862	Other net realized capital gains (losses)
		(1,027)		(1,536)		(8,505)		(1,020)	Income tax expense (benefit)
	$	3,543	$	5,858	$	31,429	$	4,842	Net income (loss)
Benefit plan net gain (loss)	$	2,286	$	1,457	$	3,451	$	2,914	Other underwriting expenses
		(480)		(306)		(725)		(612)	Income tax expense (benefit)
	$	1,806	$	1,151	$	2,726	$	2,302	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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Beginning balance of URA (D) on securities	$	(25,025)	$	31,483	$	124,612	$	(55,950)
Current period change in URA (D) of investments - temporary		247,093		74,244		97,455		161,939
Current period change in URA (D) of investments - non-credit OTTI		-		(291)		-		(553)
Ending balance of URA (D) on securities		222,068		105,436		222,068		105,436
Beginning balance of foreign currency translation adjustments		(15,367)		6,678		14,267		(2,886)
Current period change in foreign currency translation adjustments		8,436		(7,475)		(21,197)		2,089
Ending balance of foreign currency translation adjustments		(6,931)		(797)		(6,931)		(797)
Beginning balance of benefit plan net gain (loss)		(73,635)		(66,267)		(74,556)		(67,418)
Current period change in benefit plan net gain (loss)		1,806		1,151		2,726		2,302
Ending balance of benefit plan net gain (loss)		(71,829)		(65,116)		(71,829)		(65,116)
Ending balance of accumulated other comprehensive income (loss)	$	143,308	$	39,523	$	143,308	$	39,523

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Senior Notes (Tables)

6 Months Ended

Jun. 30, 2020

Senior Notes [Abstract]

Schedule Of Outstanding Senior Notes

				June 30, 2020				December 31, 2019
				Consolidated				Consolidated
			Principal	Balance Sheet		Market		Balance Sheet		Market
(Dollars in thousands)	Date Issued	Date Due	Amounts	Amount		Value		Amount		Value
Senior notes	06/05/2014	06/01/2044	400,000	$	397,134	$	469,804	$	397,074	$	452,848

Schedule Of Interest Expense Incurred In Connection With Senior Notes

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Interest expense incurred	$	4,868	$	4,868	$	9,736	$	9,736

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Long Term Subordinated Notes (Tables)

6 Months Ended

Jun. 30, 2020

Long Term Subordinated Notes [Abstract]

Schedule Of Outstanding Fixed To Floating Rate Long Term Subordinated Notes

June 30, 2020

December 31, 2019

Original

Consolidated

Consolidated

Principal

Maturity Date

Balance

Market

Balance

Market

(Dollars in thousands)

Date Issued

Amount

Scheduled

Final

Sheet Amount

Value

Sheet Amount

Value

Long term subordinated notes

04/26/2007

$

400,000

05/15/2037

05/01/2067

$

223,625

$

197,378

$

236,758

$

233,191

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Interest expense incurred	$	2,000	$	3,406	$	4,539	$	6,011

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Leases (Tables)

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Supplemental Information Relating to Operating Leases

	Three Months Ended				Six Months Ended
(Dollars in thousands)	June 30,				June 30,
	2020		2019		2020		2019
Lease expense incurred:
Operating lease cost	$	7,424	$	4,793	$	14,672	$	9,355

(Dollars in thousands)	At June 30, 2020		At December 31, 2019
Operating lease right of use assets	$	143,986	$	152,978
Operating lease liabilities		155,440		160,387

	Three Months Ended				Six Months Ended
(Dollars in thousands)	June 30,				June 30,
	2020		2019		2020		2019
Operating cash flows from operating leases	$	(4,501)	$	(4,314)	$	(8,858)	$	(8,617)

	At June 30, 2020			At December 31, 2019
Weighted average remaining operating lease term	12.6 years		12.8 years
Weighted average discount rate on operating leases	4.02	%	3.91		%

Maturities of Lease Liabilities

(Dollars in thousands)
Remainder of 2020	$	9,120
2021		16,181
2022		18,615
2023		18,202
2024		18,208
2025		15,217
Thereafter		116,149
Undiscounted lease payments		211,692
Less: present value adjustment		56,252
Total operating lease liability	$	155,440

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Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Schedule Of Underwriting Results For Operating Segments

	Three Months Ended				Six Months Ended
Reinsurance	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Gross written premiums	$	1,124,895	$	1,014,434	$	2,433,089	$	2,167,545
Net written premiums		992,750		837,913		2,106,984		1,813,912
Premiums earned	$	1,062,833	$	958,222	$	2,069,868	$	1,855,500
Incurred losses and LAE		630,658		581,281		1,313,366		1,134,995
Commission and brokerage		292,286		258,563		553,187		495,528
Other underwriting expenses		26,599		25,360		56,446		49,416
Underwriting gain (loss)	$	113,290	$	93,018	$	146,869	$	175,561

	Three Months Ended				Six Months Ended
Insurance	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Gross written premiums	$	713,352	$	673,603	$	1,380,123	$	1,205,374
Net written premiums		508,801		481,952		1,033,275		898,196
Premiums earned	$	476,127	$	417,401	$	963,097	$	790,577
Incurred losses and LAE		345,174		261,941		691,979		504,323
Commission and brokerage		63,413		58,212		125,616		109,465
Other underwriting expenses		67,532		57,991		138,893		112,317
Underwriting gain (loss)	$	8	$	39,257	$	6,609	$	64,472

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Underwriting gain (loss)	$	113,298	$	132,275	$	153,478	$	240,033
Net investment income		35,153		90,709		109,354		175,243
Net realized capital gains (losses)		(479,360)		142,563		(222,493)		277,619
Corporate expense		(3,514)		(2,519)		(7,235)		(4,170)
Interest, fee and bond issue cost amortization expense		(6,922)		(9,684)		(14,382)		(19,512)
Other income (expense)		(5,122)		(5,055)		(9,620)		(5,785)
Income (loss) before taxes	$	(346,467)	$	348,289	$	9,102	$	663,428

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Canada gross written premiums	$	71,021	$	47,206	$	134,658	$	86,256

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Related-Party Transactions (Tables)

6 Months Ended

Jun. 30, 2020

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
05/22/2020	2,000,000
	32,000,000

Dividends Received On Preferred Shares

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Dividends received on preferred stock of affiliate	$	7,758	$	7,758	$	15,516	$	15,516

Affiliated Quota Share Reinsurance Agreements For All New And Renewal Business For The Indicated Coverage Period

(Dollars in thousands)
						Single
		Percent		Assuming		Occurrence		Aggregate
Coverage Period	Ceding Company	Ceded		Company	Type of Business	Limit		Limit
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
01/01/2015-12/31/2016	Everest Re	50.0	%	Bermuda Re	property / casualty business	162,500		325,000
01/01/2017-12/31/2017	Everest Re	60.0	%	Bermuda Re	property / casualty business	219,000		438,000
01/01/2010-12/31/2010	Everest Re- Canadian Branch	60.0	%	Bermuda Re	property business	350,000	(1)	-
01/01/2011-12/31/2011	Everest Re- Canadian Branch	60.0	%	Bermuda Re	property business	350,000	(1)	-
01/01/2012-12/31/2012	Everest Re- Canadian Branch	75.0	%	Bermuda Re	property / casualty business	206,250	(1)	412,500	(1)
01/01/2013-12/31/2013	Everest Re- Canadian Branch	75.0	%	Bermuda Re	property / casualty business	150,000	(1)	412,500	(1)
01/01/2014-12/31/2017	Everest Re- Canadian Branch	75.0	%	Bermuda Re	property / casualty business	262,500	(1)	412,500	(1)
01/01/2012-12/31/2017	Everest Canada	80.0	%	Everest Re-   Canadian Branch	property business	-		-
(1) Amounts shown are Canadian dollars.

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

(Dollars in thousands)
Effective	Transferring	Assuming		% of Business or		Covered Period
Date	Company	Company		Amount of Transfer		of Transfer
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
12/31/2017	Everest Re	Bermuda Re	$	970,000		All years

Premiums And Losses Ceded By The Company To Affiliate

	Three Months Ended				Six Months Ended
Bermuda Re	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Ceded written premiums	$	31,669	$	19,534	$	62,169	$	71,007
Ceded earned premiums		31,813		16,598		62,313		69,122
Ceded losses and LAE		12,208		(3,417)		(9,951)		8,316

	Three Months Ended				Six Months Ended
Everest International	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Ceded written premiums	$	-	$	-	$	-	$	-
Ceded earned premiums		-		-		-		-
Ceded losses and LAE		(7)		(46)		16		(36)

	Three Months Ended				Six Months Ended
Everest Canada	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Assumed written premiums	$	(235)	$	-	$	1	$	-
Assumed earned premiums		(46)		-		(7)		-
Assumed losses and LAE		(948)		2,296		650		695

	Three Months Ended				Six Months Ended
Lloyd's Syndicate 2786	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Assumed written premiums	$	630	$	483	$	(2,401)	$	(8,726)
Assumed earned premiums		639		1,596		(2,183)		(17,231)
Assumed losses and LAE		(1,438)		4,391		(624)		(3,527)

	Three Months Ended				Six Months Ended
Mt. Logan Re Segregated Accounts	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Ceded written premiums	$	41,864	$	51,289	$	137,214	$	114,512
Ceded earned premiums		60,412		61,812		140,267		106,634
Ceded losses and LAE		36,835		30,159		74,300		64,781
Assumed written premiums		-		-		-		-
Assumed earned premiums		-		-		-		-
Assumed losses and LAE		-		-		-		-

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Retirement Benefits (Tables)

6 Months Ended

Jun. 30, 2020

Retirement Benefits [Abstract]

Summary Of Net Periodic Benefit Cost

Pension Benefits	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Service cost	$	2,041	$	2,276	$	6,052	$	4,553
Interest cost		2,563		2,930		5,046		5,860
Expected return on plan assets		(5,197)		(5,016)		(10,394)		(10,031)
Amortization of net (income) loss		2,462		1,601		3,675		3,203
Settlement charge		-		104		-		208
Net periodic benefit cost	$	1,869	$	1,895	$	4,379	$	3,793

Other Benefits	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2020		2019		2020		2019
Service cost	$	311	$	286	$	452	$	573
Interest cost		215		295		429		590
Amortization of prior service cost		(176)		(144)		(224)		(289)
Net periodic benefit cost	$	350	$	437	$	657	$	874
(Some amounts may not reconcile due to rounding.)

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Revisions To Financial Statements (Tables)

6 Months Ended

Jun. 30, 2020

Revisions To Financial Statements [Abstract]

Schedule Of Prior Period Financial Statements

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE		Three Months Ended June 30, 2019						Six Months Ended June 30, 2019
INCOME (LOSS):		As Previously		Impact of				As Previously		Impact of
		Reported		Revisions		As Revised		Reported		Revisions		As Revised
(Dollars in thousands)
Revenues:
Other income (expense)		(3,812)		(1,243)		(5,055)		(5,026)		(759)		(5,785)
Total revenues	$	1,605,083	$	(1,243)	$	1,603,840	$	3,093,913	$	(759)	$	3,093,154
INCOME (LOSS) BEFORE TAXES	$	349,532	$	(1,243)	$	348,289	$	664,187	$	(759)	$	663,428
Income tax expense (benefit)		67,628		(261)		67,367		131,057		(159)		130,898
NET INCOME (LOSS)	$	281,904	$	(982)	$	280,922	$	533,130	$	(600)	$	532,530
COMPREHENSIVE INCOME (LOSS)	$	349,533	$	(982)	$	348,551	$	698,907	$	(600)	$	698,307

CONSOLIDATED STATEMENTS OF	Six Months Ended June 30, 2019
CHANGES IN STOCKHOLDER'S EQUITY	As Previously		Impact of
	Reported		Revisions		As Revised
(Dollars in thousands)
RETAINED EARNINGS:
Balance, January 1	$	4,070,604	$	(7,908)	$	4,062,696
Net income (loss)		251,226		382		251,608
Balance, March 31		4,321,830		(7,524)		4,314,306
Net income (loss)		281,904		(982)		280,922
Balance, June 30		4,603,734		(8,507)		4,595,227
TOTAL STOCKHOLDER'S EQUITY, June 30	$	5,743,746	$	(8,507)	$	5,735,239

CONSOLIDATED STATEMENTS OF CASH FLOWS	Six Months Ended June 30, 2019
	As Previously		Impact of
	Reported		Revisions		As Revised
(Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	533,130	$	(600)	$	532,530
Decrease (increase) in funds held by reinsureds, net		(14,688)		759		(13,929)
Decrease (increase) in income taxes		214,830		(159)		214,671

XML

Basis Of Presentation (Narrative) (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Basis of Accounting [Line Items]
Operating lease right of use assets	$ 143,986,000	$ 152,978,000	$ 60,325,000
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]			Other assets
Operating lease liabilities	$ 155,440,000	160,387,000	$ 66,551,000
Operating Lease, Liability, Statement of Financial Position [Extensible List]			Other liabilities
Retained Earnings [Member]
Basis of Accounting [Line Items]
Change to beginning balance due to adoption of Accounting Standards Update 2016-03		$ 907,000		$ 0

XML

Investments (Narrative) (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Schedule of Available-for-sale Securities [Line Items]
Aggregate market value of investments in unrealized loss position	$ 1,469,577,000	$ 1,540,376,000
Gross unrealized losses on investments in unrealized loss position	90,409,000	45,484,000
Short-term investments	588,693,000	279,879,000
Investment Grade [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities, duration of unrealized loss, less than 12 months, gross unrealized depreciation	25,991,000	5,645,000
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation	15,488,000	16,976,000
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Aggregate market value of investments in unrealized loss position	1,469,577,000	1,540,376,000
Gross unrealized losses on investments in unrealized loss position	90,409,000	45,484,000
Fixed maturity securities, duration of unrealized loss, less than 12 months, gross unrealized depreciation	43,687,000	8,539,000
Fixed maturity securities, duration of unrealized loss, greater than 12 months, gross unrealized depreciation	$ 46,722,000	$ 36,945,000
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	0.10%	0.20%
Private Placement Liquidity Sweep [Member]
Schedule of Available-for-sale Securities [Line Items]
Short-term investments	$ 340,950,000
Sub-prime and Alt-A Loans [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized depreciation	$ 0	$ 0

XML

Investments (Summary Of Unrealized Appreciation (Depreciation) Of Available For Sale, Fixed Maturity And Equity Security Investments) (Details) - USD ($)	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Schedule of Available-for-sale Securities [Line Items]
Allowance for credit losses	$ (19,925,000)	$ (12,099,000)	$ 0
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	7,657,782,000		7,334,425,000
Allowance for credit losses	(19,925,000)
Unrealized Appreciation	371,929,000		203,138,000
Unrealized Depreciation	(90,409,000)		(45,484,000)
Market Value	7,919,377,000		7,492,079,000
OTTI in AOCI			605,000
U.S. Treasury Securities And Obligations Of U.S. Government Agencies And Corporations [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	741,244,000		768,374,000
Allowance for credit losses
Unrealized Appreciation	31,740,000		10,128,000
Unrealized Depreciation			(987,000)
Market Value	772,984,000		777,515,000
OTTI in AOCI
Obligation of U.S. States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	507,475,000		506,347,000
Allowance for credit losses
Unrealized Appreciation	27,597,000		29,651,000
Unrealized Depreciation	(3,789,000)		(87,000)
Market Value	531,283,000		535,911,000
OTTI in AOCI
Corporate Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,935,665,000		2,777,097,000
Allowance for credit losses	(19,398,000)	(11,468,000)
Unrealized Appreciation	135,213,000		70,898,000
Unrealized Depreciation	(51,922,000)		(26,438,000)
Market Value	2,999,558,000		2,821,557,000
OTTI in AOCI			245,000
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	991,779,000		761,607,000
Allowance for credit losses
Unrealized Appreciation	14,504,000		5,659,000
Unrealized Depreciation	(21,500,000)		(1,309,000)
Market Value	984,783,000		765,957,000
OTTI in AOCI
Commercial [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	348,329,000		311,961,000
Allowance for credit losses
Unrealized Appreciation	33,506,000		17,242,000
Unrealized Depreciation	(788,000)		(154,000)
Market Value	381,047,000		329,049,000
OTTI in AOCI
Agency Residential [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	604,360,000		625,612,000
Allowance for credit losses
Unrealized Appreciation	33,190,000		19,395,000
Unrealized Depreciation	(349,000)		(320,000)
Market Value	637,201,000		644,687,000
OTTI in AOCI
Non-agency Residential [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	509,000		1,638,000
Allowance for credit losses
Unrealized Appreciation
Unrealized Depreciation	(3,000)
Market Value	506,000		1,638,000
OTTI in AOCI
Foreign Government Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	636,346,000		646,149,000
Allowance for credit losses		(70,000)
Unrealized Appreciation	38,578,000		18,908,000
Unrealized Depreciation	(5,034,000)		(7,050,000)
Market Value	669,890,000		658,007,000
OTTI in AOCI			27,000
Foreign Corporate Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	892,075,000		935,640,000
Allowance for credit losses	(527,000)	$ (561,000)
Unrealized Appreciation	57,601,000		31,257,000
Unrealized Depreciation	(7,024,000)		(9,139,000)
Market Value	$ 942,125,000		957,758,000
OTTI in AOCI			$ 333,000

XML

Investments (Summary Of Amortized Cost And Market Value Of Fixed Maturity Securities, By Contractual Maturity) (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities - available for sale, at market value, Amortized Cost	$ 7,657,782	$ 7,334,425
Fixed maturity securities - available for sale, Market Value	7,919,377	7,492,079
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	716,996	569,506
Fixed maturity securities - available for sale, Due after one year through five years, Amortized Cost	2,773,635	2,919,966
Fixed maturity securities - available for sale, Due after five years through ten years, Amortized Cost	1,615,652	1,541,695
Fixed maturity securities - available for sale, Due after ten years, Amortized Cost	606,522	602,440
Fixed maturity securities - available for sale, Due in one year or less, Market Value	714,607	563,730
Fixed maturity securities - available for sale, Due after one year through five years, Market Value	2,866,814	2,963,903
Fixed maturity securities - available for sale, Due after five years through ten years, Market Value	1,735,868	1,602,642
Fixed maturity securities - available for sale, Due after ten years, Market Value	598,551	620,473
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities - available for sale, at market value, Amortized Cost	991,779	761,607
Fixed maturity securities - available for sale, Market Value	984,783	765,957
Commercial [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities - available for sale, at market value, Amortized Cost	348,329	311,961
Fixed maturity securities - available for sale, Market Value	381,047	329,049
Agency Residential [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities - available for sale, at market value, Amortized Cost	604,360	625,612
Fixed maturity securities - available for sale, Market Value	637,201	644,687
Non-agency Residential [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturity securities - available for sale, at market value, Amortized Cost	509	1,638
Fixed maturity securities - available for sale, Market Value	$ 506	$ 1,638

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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		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Schedule of Available-for-sale Securities [Line Items]
Change in unrealized appreciation (depreciation), pre-tax	$ 311,927	$ 93,551	$ 123,520	$ 204,128
Deferred tax benefit (expense)	(64,834)	(19,675)	(26,065)	(42,889)
Deferred tax benefit (expense), other-than-temporary impairment		77		147
Total URA(D) on securities arising during the period	247,093	73,953	97,455	161,386
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Change in unrealized appreciation (depreciation), pre-tax	311,927	93,919	123,520	204,828
Fixed Maturity Securities, Other-Than-Temporary Impairment [Member]
Schedule of Available-for-sale Securities [Line Items]
Change in unrealized appreciation (depreciation), pre-tax		$ (368)		$ (700)

XML

Investments (Summary Of Aggregate Market Value And Gross Unrealized Depreciation Of Fixed Maturity And Equity Securities, By Security Type) (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Market Value, Total	$ 1,469,577	$ 1,540,376
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(90,409)	(45,484)
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	1,129,113	759,174
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(43,687)	(8,539)
Available for sale securities, Greater than 12 months, Market Value	340,464	781,202
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(46,722)	(36,945)
Available-for-sale Securities, Market Value, Total	1,469,577	1,540,376
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(90,409)	(45,484)
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		8,997
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation		(141)
Available for sale securities, Greater than 12 months, Market Value		203,780
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation		(846)
Available-for-sale Securities, Market Value, Total		212,777
Available-for-sale Securities, Gross Unrealized Depreciation, Total		(987)
Obligation 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	70,056	4,600
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(3,564)	(38)
Available for sale securities, Greater than 12 months, Market Value	3,331	4,518
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(225)	(49)
Available-for-sale Securities, Market Value, Total	73,387	9,118
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(3,789)	(87)
Corporate Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	423,967	334,973
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(20,116)	(5,186)
Available for sale securities, Greater than 12 months, Market Value	122,165	230,679
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(31,806)	(21,252)
Available-for-sale Securities, Market Value, Total	546,132	565,652
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(51,922)	(26,438)
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	437,211	159,695
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(16,250)	(887)
Available for sale securities, Greater than 12 months, Market Value	129,870	76,351
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(5,250)	(422)
Available-for-sale Securities, Market Value, Total	567,081	236,046
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(21,500)	(1,309)
Commercial [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	31,984	13,083
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(756)	(87)
Available for sale securities, Greater than 12 months, Market Value	3,303	16,374
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(32)	(67)
Available-for-sale Securities, Market Value, Total	35,287	29,457
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(788)	(154)
Agency Residential [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	23,621	19,019
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(342)	(82)
Available for sale securities, Greater than 12 months, Market Value	1,166	17,147
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(7)	(238)
Available-for-sale Securities, Market Value, Total	24,787	36,166
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(349)	(320)
Non-agency Residential [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	161
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(2)
Available for sale securities, Greater than 12 months, Market Value	344	690
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(1)
Available-for-sale Securities, Market Value, Total	505	690
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(3)
Foreign Government Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	51,453	113,256
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(506)	(858)
Available for sale securities, Greater than 12 months, Market Value	41,802	109,953
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(4,528)	(6,192)
Available-for-sale Securities, Market Value, Total	93,255	223,209
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(5,034)	(7,050)
Foreign Corporate Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	90,660	105,551
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(2,151)	(1,260)
Available for sale securities, Greater than 12 months, Market Value	38,483	121,710
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(4,873)	(7,879)
Available-for-sale Securities, Market Value, Total	129,143	227,261
Available-for-sale Securities, Gross Unrealized Depreciation, Total	$ (7,024)	$ (9,139)

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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	Jun. 30, 2020	Dec. 31, 2019
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Market Value, Total	$ 1,469,577	$ 1,540,376
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(90,409)	(45,484)
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	1,129,113	759,174
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(43,687)	(8,539)
Available for sale securities, Greater than 12 months, Market Value	340,464	781,202
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(46,722)	(36,945)
Available-for-sale Securities, Market Value, Total	1,469,577	1,540,376
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(90,409)	(45,484)
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	32,323	34,542
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(473)	(1,067)
Available for sale securities, Greater than 12 months, Market Value	52,176	188,755
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(8,444)	(6,411)
Available-for-sale Securities, Market Value, Total	84,499	223,297
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(8,917)	(7,478)
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	340,168	226,521
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(12,125)	(2,554)
Available for sale securities, Greater than 12 months, Market Value	94,125	357,728
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(6,849)	(11,562)
Available-for-sale Securities, Market Value, Total	434,293	584,249
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(18,974)	(14,116)
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	154,542	251,967
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(6,913)	(3,292)
Available for sale securities, Greater than 12 months, Market Value	2,842	43,129
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(659)	(6,785)
Available-for-sale Securities, Market Value, Total	157,384	295,096
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(7,572)	(10,077)
Due After Ten Years [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	109,103	54,347
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(6,826)	(570)
Available for sale securities, Greater than 12 months, Market Value	56,638	81,028
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(25,480)	(11,460)
Available-for-sale Securities, Market Value, Total	165,741	135,375
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(32,306)	(12,030)
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	437,211	159,695
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(16,250)	(887)
Available for sale securities, Greater than 12 months, Market Value	129,870	76,351
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(5,250)	(422)
Available-for-sale Securities, Market Value, Total	567,081	236,046
Available-for-sale Securities, Gross Unrealized Depreciation, Total	(21,500)	(1,309)
Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities, Less than 12 months, Market Value	55,766	32,102
Available for sale securities, Less than 12 months, Gross Unrealized Depreciation	(1,100)	(169)
Available for sale securities, Greater than 12 months, Market Value	4,813	34,211
Available for sale securities, Greater than 12 months, Gross Unrealized Depreciation	(40)	(305)
Available-for-sale Securities, Market Value, Total	60,579	66,313
Available-for-sale Securities, Gross Unrealized Depreciation, Total	$ (1,140)	$ (474)

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Investments (Summary Of Components Of Net Investment Income) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustments	$ 41,830	$ 97,035	$ 120,762	$ 187,049
Funds held interest income (expense)	901	1,445	4,158	4,326
Interest income from Parent	1,281		2,563
Gross investment income	44,012	98,480	127,483	191,375
Investment expenses	(8,859)	(7,771)	(18,129)	(16,132)
Net investment income	35,153	90,709	109,354	175,243
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustments	74,897	65,374	148,985	132,428
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustments	2,024	2,319	3,616	3,750
Short-Term Investments and Cash [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustments	578	3,169	2,148	5,905
Limited Partnerships [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustments	(40,465)	15,116	(33,469)	23,171
Dividends From Preferred Shares Of Affiliate [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustments	7,758	7,758	15,516	15,516
Other [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross investment income before adjustments	$ (2,962)	$ 3,299	$ (16,034)	$ 6,279

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Investments (Summary Of Components Of Net Realized Capital Gains (Losses)) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Schedule of Available-for-sale Securities [Line Items]
Other-than-temporary impairments		$ (4,929,000)		$ (7,219,000)
Total net realized capital gains (losses)	(479,360,000)	142,563,000	(222,493,000)	277,619,000
Balance as of December 31, 2019	(12,099,000)		0
Credit losses on securities where credit losses were not previously recorded	(10,355,000)		(22,454,000)
Increases in allowance on previously impaired securities	(766,000)		(766,000)
Decrease in allowance on previously impaired securities	1,354,000		1,354,000
Reduction in allowance due to disposals	1,941,000		1,941,000
Balance as of June 30, 2020	(19,925,000)		(19,925,000)
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Balance as of June 30, 2020	(19,925,000)		(19,925,000)
Fixed Maturity Securities [Member] | Market Value [Member]
Schedule of Available-for-sale Securities [Line Items]
Allowance for credit losses	(7,826,000)		(19,925,000)
Other-than-temporary impairments		(4,929,000)		(7,219,000)
Gains (losses) from sales	1,963,000	(2,313,000)	(18,974,000)	1,113,000
Fixed Maturity Securities [Member] | Fair Value [Member]
Schedule of Available-for-sale Securities [Line Items]
Gains (losses) from sales		356,000		356,000
Gains (losses) from fair value adjustments	(272,000)		(1,395,000)	13,000
Corporate Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Balance as of December 31, 2019	(11,468,000)
Credit losses on securities where credit losses were not previously recorded	(10,355,000)		(21,823,000)
Increases in allowance on previously impaired securities	(555,000)		(555,000)
Decrease in allowance on previously impaired securities	1,238,000		1,238,000
Reduction in allowance due to disposals	1,742,000		1,742,000
Balance as of June 30, 2020	(19,398,000)		(19,398,000)
Equity Securities [Member] | Fair Value [Member]
Schedule of Available-for-sale Securities [Line Items]
Gains (losses) from sales	16,274,000	(1,314,000)	(11,328,000)	3,730,000
Gains (losses) from fair value adjustments	148,205,000	25,829,000	26,536,000	103,675,000
Other Invested Assets [Member]
Schedule of Available-for-sale Securities [Line Items]
Gains (losses) from sales	1,292,000	(152,000)	(1,035,000)	244,000
Other Invested Assets [Member] | Fair Value [Member]
Schedule of Available-for-sale Securities [Line Items]
Gains (losses) from fair value adjustments	(639,058,000)	125,024,000	(196,579,000)	175,651,000
Short-Term Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Gains (losses) from sales	62,000	$ 62,000	207,000	$ 56,000
Foreign Government Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Balance as of December 31, 2019	(70,000)
Credit losses on securities where credit losses were not previously recorded			(70,000)
Increases in allowance on previously impaired securities
Decrease in allowance on previously impaired securities
Reduction in allowance due to disposals	70,000		70,000
Balance as of June 30, 2020
Foreign Corporate Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Balance as of December 31, 2019	(561,000)
Credit losses on securities where credit losses were not previously recorded			(561,000)
Increases in allowance on previously impaired securities	(211,000)		(211,000)
Decrease in allowance on previously impaired securities	116,000		116,000
Reduction in allowance due to disposals	129,000		129,000
Balance as of June 30, 2020	$ (527,000)		$ (527,000)

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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		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Fixed Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Proceeds from sales of securities	$ 173,479	$ 403,419	$ 337,723	$ 2,007,308
Gross gains from sales	8,755	3,133	10,601	11,237
Gross losses from sales	(6,792)	(5,090)	(29,575)	(9,768)
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Proceeds from sales of securities	8,842	79,735	213,003	148,973
Gross gains from sales	18,172	2,577	20,753	8,248
Gross losses from sales	$ (1,898)	$ (3,891)	$ (32,081)	$ (4,518)

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Reserves For Losses And LAE (Narrative) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Reserves For Losses And LAE [Line Items]
Incurred related to: Current year	$ 2,006,988	$ 1,615,277
Increase (decrease) in reinsurance business	(1,643)	$ 24,041
Covid-19 [Member]
Reserves For Losses And LAE [Line Items]
Increase (decrease) in reinsurance business	$ (73,691)

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Reserves For Losses And LAE (Summary Of Activity In The Reserve For Losses And LAE) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Reserves For Losses And LAE [Abstract]
Gross reserves beginning of period	$ 10,209,519	$ 10,167,018
Less reinsurance recoverables	(4,215,348)	(4,697,543)
Net reserves at beginning of period	5,994,171	5,469,475
Incurred related to: Current year	2,006,988	1,615,277
Incurred related to: Prior years	(1,643)	24,041
Total incurred losses and LAE	2,005,345	1,639,318
Paid related to: Current year	474,372	391,381
Paid related to: Prior years	1,025,866	1,144,204
Total paid losses and LAE	1,500,238	1,535,585
Foreign exchange/translation adjustment and cumulative adjustment due to adoption of ASU 2016-13	(26,906)	228
Net reserves at end of period	6,472,371	5,573,437
Plus reinsurance recoverables	3,910,952	4,574,975
Gross reserves end of period	$ 10,383,323	$ 10,148,412

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Fair Value (Narrative) (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2015	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of public equity portfolio		$ 365,554,000		$ 365,554,000		$ 170,888,000
Annual dividend rate	1.75%
Transfers between Level 1 and Level 2		0		0
Investments within other invested assets		1,786,003,000		1,786,003,000		1,982,582,000
Transfers from level 3		(3,818,000)	$ 3,977,000	$ (3,818,000)	$ 1,519,000
Redeemable Convertible Preferred Stock [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Preferred stock tern				25 years
Annual dividend rate				1.75%
Adjustments for New Accounting Pronouncement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments within other invested assets		224,467,000		$ 224,467,000		209,578,000
Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments within other invested assets
Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments within other invested assets		1,786,003,000		1,786,003,000		1,982,582,000
Market Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Transfers from level 3		(3,818,000)	3,977,000	(3,818,000)	1,519,000
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Transfers from level 3
Fixed Maturities [Member] | Market Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities		953,190,000		953,190,000		702,331,000
Fixed Maturities [Member] | Market Value [Member] | Investment Managers' Valuation Committees, Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities		782,259,000		782,259,000		610,873,000
Fixed Maturities [Member] | Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities						5,826,000
Fixed Maturities [Member] | Fair Value [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities		$ 170,931,000		$ 170,931,000		91,458,000
Fixed Maturities [Member] | Fair Value [Member] | Investment Managers' Valuation Committees, Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities						$ 5,826,000
Senior Notes [Member] | Senior Notes 4.868% [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Observable input constant maturity				10 years
Debt instrument, stated interest rate		4.868%		4.868%
Date Due				Jun. 01, 2044		Jun. 01, 2044

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Fair Value (Fair Value Measurement Levels For All Assets, Recorded At Fair And Market Value) (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value	$ 7,919,377	$ 7,492,079
Fixed maturities, fair value	4,431	5,826
Equity securities, fair value	789,819	764,049
Other invested assets, at fair value	1,786,003	1,982,582
Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value
Fixed maturities, fair value
Equity securities, fair value	740,197	719,548
Other invested assets, at fair value
Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value	6,966,187	6,789,748
Fixed maturities, fair value
Equity securities, fair value	39,745	44,501
Other invested assets, at fair value
Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value	953,190	702,331
Fixed maturities, fair value	4,431	5,826
Equity securities, fair value	9,877
Other invested assets, at fair value	1,786,003	1,982,582
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 maturities, market value	772,984	777,515
U.S. Treasury Securities And Obligations Of U.S. Government Agencies And Corporations [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value
U.S. Treasury Securities And Obligations Of U.S. Government Agencies And Corporations [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value	772,984	777,515
U.S. Treasury Securities And Obligations Of U.S. Government Agencies And Corporations [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value
Obligation of U.S. States and Political Subdivisions [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value	531,283	535,911
Obligation of U.S. States and Political Subdivisions [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value
Obligation of U.S. States and Political Subdivisions [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value	531,283	535,911
Obligation of U.S. States and Political Subdivisions [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value
Corporate Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value	2,999,558	2,821,557
Corporate Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value
Corporate Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value	2,348,372	2,274,618
Corporate Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value	651,186	546,939
Asset-backed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value	984,783	765,957
Asset-backed Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value	689,053	612,316
Asset-backed Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value	295,730	153,641
Commercial [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value	381,047	329,049
Commercial [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value
Commercial [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value	381,047	329,049
Commercial [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value
Agency Residential [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value	637,201	644,687
Agency Residential [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value
Agency Residential [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value	637,201	644,687
Agency Residential [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value
Non-agency Residential [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value	506	1,638
Non-agency Residential [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value
Non-agency Residential [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value	506	1,638
Non-agency Residential [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value
Foreign Government Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value	669,890	658,007
Foreign Government Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value
Foreign Government Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value	669,890	658,007
Foreign Government Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value
Foreign Corporate Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value	942,125	957,758
Foreign Corporate Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value
Foreign Corporate Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value	935,851	956,007
Foreign Corporate Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, market value	$ 6,274	$ 1,751

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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		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Transfers in and/or (out) of Level 3	$ (3,818)	$ 3,977	$ (3,818)	$ 1,519
Market Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	881,063	374,476	702,331	383,994
Total gains or (losses) (realized/unrealized), Included in earnings	(224)	(2,766)	(434)	2,211
Total gains or (losses) (realized/unrealized), Included in other comprehensive income (loss)	17,503	1,870	(1,736)	2,444
Purchases, issuances and settlements	58,666	96,765	256,847	84,154
Transfers in and/or (out) of Level 3	(3,818)	3,977	(3,818)	1,519
Ending balance	953,190	474,322	953,190	474,322
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			(539)
Market Value [Member] | Corporate Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	642,432	367,178	546,939	376,250
Total gains or (losses) (realized/unrealized), Included in earnings	(248)	(2,528)	(462)	2,330
Total gains or (losses) (realized/unrealized), Included in other comprehensive income (loss)	(549)	1,870	(3,906)	2,444
Purchases, issuances and settlements	14,346	101,732	113,410	89,686
Transfers in and/or (out) of Level 3	(4,795)	3,977	(4,795)	1,519
Ending balance	651,186	472,229	651,186	472,229
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			(539)
Market Value [Member] | Asset-backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	238,631		153,641
Total gains or (losses) (realized/unrealized), Included in earnings	121		125
Total gains or (losses) (realized/unrealized), Included in other comprehensive income (loss)	18,092		2,210
Purchases, issuances and settlements	38,886		139,754
Transfers in and/or (out) of Level 3
Ending balance	295,730		295,730
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
Market Value [Member] | Foreign Corporate Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		7,298	1,751	7,744
Total gains or (losses) (realized/unrealized), Included in earnings	(97)	(238)	(97)	(119)
Total gains or (losses) (realized/unrealized), Included in other comprehensive income (loss)	(40)		(40)
Purchases, issuances and settlements	5,434	(4,967)	3,683	(5,532)
Transfers in and/or (out) of Level 3	977		977
Ending balance	6,274	2,093	6,274	2,093
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
Fair Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	4,703	2,350	5,826	2,337
Total gains or (losses) (realized/unrealized), Included in earnings	(272)	356	(1,395)	369
Total gains or (losses) (realized/unrealized), Included in other comprehensive income (loss)
Purchases, issuances and settlements		(2,706)		(2,706)
Transfers in and/or (out) of Level 3
Ending balance	4,431		4,431
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
Fair Value [Member] | Foreign Corporate Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	4,703	2,350	5,826	2,337
Total gains or (losses) (realized/unrealized), Included in earnings	(272)	356	(1,395)	369
Total gains or (losses) (realized/unrealized), Included in other comprehensive income (loss)
Purchases, issuances and settlements		(2,706)		(2,706)
Transfers in and/or (out) of Level 3
Ending balance	4,431		4,431
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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Fair Value (Fair Value Measurements Using Significant Unobservable Inputs) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Equity Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance
Total gains or (losses) (realized/unrealized) Included in earnings
Total gains or (losses) (realized/unrealized) Included in other comprehensive income (loss)
Purchases, issuances and settlements	9,877		9,877
Transfers in and/or (out) of Level 3
Ending Balance	9,877		9,877
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
Other Invested Assets [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	2,425,061	1,767,963	1,982,582	1,717,336
Total gains or (losses) (realized/unrealized) Included in earnings	(639,058)	125,025	(196,579)	175,652
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	1,786,003	1,892,988	1,786,003	1,892,988
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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Commitments And Contingencies (Estimated Cost To Replace All Such Annuities For Which The Company Was Contingently Liable) (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
The Prudential Insurance Company [Member]
Loss Contingencies [Line Items]
Estimated cost to replace annuities	$ 141,186	$ 141,703
Unaffiliated Life Insurance Company [Member]
Loss Contingencies [Line Items]
Estimated cost to replace annuities	$ 33,778	$ 35,082

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Comprehensive Income (Loss) (Components Of Comprehensive Income (Loss) In The Consolidated Statements Of Operations) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Comprehensive Income (Loss) [Line Items]
Before Tax	$ 4,570	$ 7,394	$ 39,934	$ 5,862
Tax Effect	(1,027)	(1,536)	(8,505)	(1,020)
Net of Tax	3,543	5,858	31,429	4,842
Reclassification, Before Tax	2,286	1,457	3,451	2,914
Reclassification, Tax Effect	(480)	(306)	(725)	(612)
Reclassification, Net of Tax	1,806	1,151	2,726	2,302
Total, Before Tax	324,887	85,542	100,114	209,686
Total, Tax Effect	(67,552)	(17,913)	(21,130)	(43,909)
Total, Net of Tax	257,335	67,629	78,984	165,777
URA(D) On Securities [Member]
Comprehensive Income (Loss) [Line Items]
Before Tax	307,356	86,524	83,586	198,965
Tax Effect	(63,806)	(18,138)	(17,560)	(41,868)
Net of Tax	243,550	68,386	66,026	157,097
Total, Net of Tax	247,093	74,244	97,455	161,939
URA(D) On Securities - OTTI [Member]
Comprehensive Income (Loss) [Line Items]
Before Tax		(368)		(700)
Tax Effect		(77)		147
Net of Tax		(291)		(553)
Total, Net of Tax		(291)		(553)
Foreign Currency Translation Adjustments [Member]
Comprehensive Income (Loss) [Line Items]
Before Tax	10,675	(9,465)	(26,857)	2,645
Tax Effect	(2,239)	1,990	5,660	(556)
Net of Tax	8,436	(7,475)	(21,197)	2,089
Total, Net of Tax	8,436	(7,475)	(21,197)	2,089
Benefit Plan Net Gain (Loss) [Member]
Comprehensive Income (Loss) [Line Items]
Total, Net of Tax	$ 1,806	$ 1,151	$ 2,726	$ 2,302

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Comprehensive Income (Loss) (Reclassification From Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other net realized capital gains (losses)	$ 471,534	$ (147,492)	$ 202,568	$ (284,838)
Other underwriting expenses	2,286	1,457	3,451	2,914
Income tax expense (benefit)	(480)	(306)	(725)	(612)
Net income (loss)	1,806	1,151	2,726	2,302
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)	4,570	7,394	39,934	5,862
Income tax expense (benefit)	(1,027)	(1,536)	(8,505)	(1,020)
Net income (loss)	3,543	5,858	31,429	4,842
Benefit Plan Net Gain (Loss) [Member] | Reclassification From Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other underwriting expenses	2,286	1,457	3,451	2,914
Income tax expense (benefit)	(480)	(306)	(725)	(612)
Net income (loss)	$ 1,806	$ 1,151	$ 2,726	$ 2,302

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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				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019
Comprehensive Income (Loss) [Line Items]
Beginning balance,		$ 5,857,425			$ 5,857,425
Current period change	$ 257,335		$ 67,629		78,984	$ 165,777
Ending balance,	5,983,572		5,735,239		5,983,572	5,735,239
URA(D) On Securities [Member]
Comprehensive Income (Loss) [Line Items]
Beginning balance,	(25,025)	124,612	31,483	$ (55,950)	124,612	(55,950)
Current period change	247,093		74,244		97,455	161,939
Ending balance,	222,068	(25,025)	105,436	31,483	222,068	105,436
URA(D) On Securities - OTTI [Member]
Comprehensive Income (Loss) [Line Items]
Current period change			(291)			(553)
Foreign Currency Translation Adjustments [Member]
Comprehensive Income (Loss) [Line Items]
Beginning balance,	(15,367)	14,267	6,678	(2,886)	14,267	(2,886)
Current period change	8,436		(7,475)		(21,197)	2,089
Ending balance,	(6,931)	(15,367)	(797)	6,678	(6,931)	(797)
Benefit Plan Net Gain (Loss) [Member]
Comprehensive Income (Loss) [Line Items]
Beginning balance,	(73,635)	(74,556)	(66,267)	(67,418)	(74,556)	(67,418)
Current period change	1,806		1,151		2,726	2,302
Ending balance,	(71,829)	(73,635)	(65,116)	(66,267)	(71,829)	(65,116)
Accumulated Other Comprehensive Income (Loss), Net Of Taxes [Member]
Comprehensive Income (Loss) [Line Items]
Beginning balance,	(114,027)	64,324	(28,106)	(126,254)	64,324	(126,254)
Current period change	257,335	(178,351)	67,629	98,148
Ending balance,	$ 143,308	$ (114,027)	$ 39,523	$ (28,106)	$ 143,308	$ 39,523

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Collateralized Reinsurance And Trust Agreements (Narrative) (Details) $ in Thousands							1 Months Ended
	Dec. 12, 2019 USD ($) Item	Apr. 30, 2018 USD ($) Item	Apr. 13, 2017 USD ($) Item	Dec. 01, 2015 USD ($) Item	Nov. 18, 2014 USD ($)	Apr. 24, 2014 USD ($) Item	Nov. 30, 2019 USD ($)	Jun. 30, 2020 USD ($)
Effects of Reinsurance [Line Items]
Amount on deposit in trust accounts								$ 826,662
Kilimanjaro Re Limited [Member]
Effects of Reinsurance [Line Items]
Number of collateralized reinsurance agreements | Item		4	6	2		2
Reinsurance contract expiration						Apr. 01, 2018
Kilimanjaro Re Limited [Member] | Catastrophe Reinsurance [Member]
Effects of Reinsurance [Line Items]
Number of collateralized reinsurance agreements | Item	4
Reinsurance coverage amount					$ 500,000
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 1-2 [Member]
Effects of Reinsurance [Line Items]
Number of collateralized reinsurance agreements | Item	2	2
Reinsurance Contracts	4 years	4 years
Kilimanjaro Re Limited [Member] | Catastrophe Reinsurance Agreements 1- 3 [Member]
Effects of Reinsurance [Line Items]
Number of collateralized reinsurance agreements | Item			3
Reinsurance Contracts			4 years
Kilimanjaro Re Limited [Member] | Catastrophe Reinsurance Agreement 1 [Member]
Effects of Reinsurance [Line Items]
Reinsurance coverage amount	$ 150,000	$ 62,500	$ 225,000	$ 300,000
Kilimanjaro Re Limited [Member] | Catastrophe Reinsurance Agreement 2 [Member]
Effects of Reinsurance [Line Items]
Reinsurance coverage amount	$ 275,000	$ 200,000	400,000	325,000
Kilimanjaro Re Limited [Member] | Catastrophe Reinsurance Agreement 3-4 [Member]
Effects of Reinsurance [Line Items]
Number of collateralized reinsurance agreements | Item	2	2
Reinsurance Contracts	5 years	5 years
Kilimanjaro Re Limited [Member] | Catastrophe Reinsurance Agreement 3 [Member]
Effects of Reinsurance [Line Items]
Reinsurance coverage amount	$ 150,000	$ 62,500	$ 325,000
Kilimanjaro Re Limited [Member] | Catastrophe Reinsurance Agreements 4 - 6 [Member]
Effects of Reinsurance [Line Items]
Number of collateralized reinsurance agreements | Item			3
Reinsurance Contracts			5 years
Kilimanjaro Re Limited [Member] | Catastrophe Reinsurance Agreement 4 [Member]
Effects of Reinsurance [Line Items]
Reinsurance coverage amount	275,000	200,000	$ 50,000
Kilimanjaro Re Limited [Member] | Catastrophe Reinsurance Agreement 5 [Member]
Effects of Reinsurance [Line Items]
Reinsurance coverage amount			75,000
Kilimanjaro Re Limited [Member] | Catastrophe Reinsurance Agreement 6 [Member]
Effects of Reinsurance [Line Items]
Reinsurance coverage amount			175,000
Series 2014-1 Notes [Member] | Kilimanjaro Re Limited [Member] | Catastrophe Reinsurance [Member]
Effects of Reinsurance [Line Items]
Catastrophe reinsurance bonds, funded amount						$ 450,000
Catastrophe Reinsurance Bonds Redeemed Amount		450,000
Series 2014-2 Notes [Member] | Kilimanjaro Re Limited [Member] | Catastrophe Reinsurance [Member]
Effects of Reinsurance [Line Items]
Catastrophe reinsurance bonds, funded amount					$ 500,000
Catastrophe Reinsurance Bonds Redeemed Amount							$ 450,000
Series 2015-1 Notes [Member] | Kilimanjaro Re Limited [Member] | Catastrophe Reinsurance [Member]
Effects of Reinsurance [Line Items]
Catastrophe reinsurance bonds, funded amount				$ 625,000
Series 2017-1 Notes [Member] | Kilimanjaro Re Limited [Member] | Catastrophe Reinsurance [Member]
Effects of Reinsurance [Line Items]
Catastrophe reinsurance bonds, funded amount			950,000
Series 2017-2 Notes [Member] | Kilimanjaro Re Limited [Member] | Catastrophe Reinsurance [Member]
Effects of Reinsurance [Line Items]
Catastrophe reinsurance bonds, funded amount			$ 300,000
Series 2018-1 Notes [Member] | Kilimanjaro Re Limited [Member] | Catastrophe Reinsurance [Member]
Effects of Reinsurance [Line Items]
Catastrophe reinsurance bonds, funded amount		262,500
Series 2018-2 Notes [Member] | Kilimanjaro Re Limited [Member] | Catastrophe Reinsurance [Member]
Effects of Reinsurance [Line Items]
Catastrophe reinsurance bonds, funded amount		$ 262,500
Series 2019-1 Notes [Member] | Kilimanjaro Re Limited [Member] | Catastrophe Reinsurance [Member]
Effects of Reinsurance [Line Items]
Catastrophe reinsurance bonds, funded amount	425,000
Series 2019-2 Notes [Member] | Kilimanjaro Re Limited [Member] | Catastrophe Reinsurance [Member]
Effects of Reinsurance [Line Items]
Catastrophe reinsurance bonds, funded amount	$ 425,000

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Senior Notes (Narrative) (Details) - Senior Notes [Member] - Senior Notes 4.868% [Member] - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
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%
Maturity date	Jun. 01, 2044	Jun. 01, 2044

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Senior Notes (Schedule Of Outstanding Senior Notes) (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Assets Sold under Agreements to Repurchase [Line Items]
Consolidated Balance Sheet Amount	$ 397,134,000	$ 397,074,000
Senior Notes 4.868% [Member] | Senior Notes [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Date Issued	Jun. 05, 2014
Date Due	Jun. 01, 2044	Jun. 01, 2044
Principal Amounts	$ 400,000,000
Consolidated Balance Sheet Amount	397,134,000	$ 397,074,000
Market value	$ 469,804,000	$ 452,848,000

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Senior Notes (Schedule Of Interest Expense Incurred In Connection With Senior Notes) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Senior Notes [Abstract]
Interest expense incurred	$ 4,868	$ 4,868	$ 9,736	$ 9,736

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Long Term Subordinated Notes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Long Term Subordinated Debt [Member]
Debt Instrument [Line Items]
Outstanding debt reduction		$ 161,441
Senior Notes 5.40% [Member] | Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate	5.40%	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
Subordinated Notes 6.6% [Member] | Long Term Subordinated Debt [Member]
Debt Instrument [Line Items]
Debt instrument, stated interest rate	6.60%	6.60%
Right to defer interest, period		10 years
Reset quarterly interest rate	2.78%	2.78%
Interest basis, 3 month LIBOR plus number of basis points, reset quarterly		2.385%
Percentage of principal amount required for redemption		100.00%
Outstanding debt reduction	$ 11,483	$ 13,183
Gain on repurchase and retirement of debt	$ 2,034	$ 2,536
Debt instrument, maturity date		May 01, 2067	May 01, 2067
Subordinated Notes 6.6% [Member] | Long Term Subordinated Debt [Member] | Minimum [Member]
Debt Instrument [Line Items]
Interest payment date		May 3, 2007
Redemption date		May 15, 2017
Subordinated Notes 6.6% [Member] | Long Term Subordinated Debt [Member] | Maximum [Member]
Debt Instrument [Line Items]
Interest payment date		May 14, 2017
Redemption date		May 01, 2047

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Long Term Subordinated Notes (Schedule Of Outstanding Fixed To Floating Rate Long Term Subordinated Notes) (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Consolidated Balance Sheet Amount	$ 223,625,000	$ 236,758,000
Subordinated Notes 6.6% [Member] | Long Term Subordinated Debt [Member]
Debt Instrument [Line Items]
Date Issued	Apr. 26, 2007
Original Principal Amount	$ 400,000,000
Maturity date	May 01, 2067	May 01, 2067
Consolidated Balance Sheet Amount	$ 223,625,000	$ 236,758,000
Market value	$ 197,378,000	$ 233,191,000
Subordinated Notes 6.6% [Member] | Long Term Subordinated Debt [Member] | Scheduled [Member]
Debt Instrument [Line Items]
Maturity date	May 15, 2037
Subordinated Notes 6.6% [Member] | 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		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Long Term Subordinated Notes [Abstract]
Interest expense incurred	$ 2,000	$ 3,406	$ 4,539	$ 6,011

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Federal Home Loan Bank Membership (Narrative) (Details)	Jun. 30, 2020 USD ($)
Federal Home Loan Bank Membership [Abstract]
Maximum percentage of admitted assets allowed for borrowing base	10.00%
Admitted assets for FHLB	$ 13,435,683,000
Maximum amount available under FHLB	1,343,568,000
Borrowings from FHLB	$ 0

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Leases (Narrative) (Details) $ in Thousands	Jul. 02, 2019 USD ($) ft²
Area of property | ft²	315,000
Lease maturity year	2036
Lease monthly payment amount	$ 650
Lease annual payment amount	$ 7,800

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Leases (Supplemental Information Relating to Operating Leases) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Jan. 01, 2019
Leases [Abstract]
Lease expense incurred: Operating lease cost	$ 7,424	$ 4,793	$ 14,672	$ 9,355
Operating lease right of use assets	143,986		143,986		$ 152,978	$ 60,325
Operating lease liabilities	155,440		155,440		$ 160,387	$ 66,551
Operating cash flows from operating leases	$ (4,501)	$ (4,314)	$ (8,858)	$ (8,617)
Weighted average remaining operating lease term	12 years 7 months 6 days		12 years 7 months 6 days		12 years 9 months 18 days
Weighted average discount rate on operating leases	4.02%		4.02%		3.91%

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Leases (Maturities of Lease Liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Jan. 01, 2019
Leases [Abstract]
Remainder of 2020	$ 9,120
2021	16,181
2022	18,615
2023	18,202
2024	18,208
2025	15,217
Thereafter	116,149
Undiscounted lease payments	211,692
Less: present value adjustment	56,252
Total operating lease liability	$ 155,440	$ 160,387	$ 66,551

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Segment Reporting (Narrative) (Details)	6 Months Ended
	Jun. 30, 2020
Sales Revenue, Net [Member] | Maximum [Member]
Concentration Risk [Line Items]
Percentage of revenues	5.00%

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Segment Reporting (Schedule Of Underwriting Results For Operating Segments) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Segment Reporting Information [Line Items]
Premiums earned	$ 1,538,960	$ 1,375,623	$ 3,032,965	$ 2,646,077
Incurred losses and LAE	975,832	843,222	2,005,345	1,639,318
Commission and brokerage	355,699	316,775	678,803	604,993
Other underwriting expenses	94,131	83,351	195,339	161,733
Underwriting gain (loss)	113,298	132,275	153,478	240,033
U.S. Reinsurance [Member]
Segment Reporting Information [Line Items]
Gross written premiums	1,124,895	1,014,434	2,433,089	2,167,545
Net written premiums	992,750	837,913	2,106,984	1,813,912
Premiums earned	1,062,833	958,222	2,069,868	1,855,500
Incurred losses and LAE	630,658	581,281	1,313,366	1,134,995
Commission and brokerage	292,286	258,563	553,187	495,528
Other underwriting expenses	26,599	25,360	56,446	49,416
Underwriting gain (loss)	113,290	93,018	146,869	175,561
Insurance [Member]
Segment Reporting Information [Line Items]
Gross written premiums	713,352	673,603	1,380,123	1,205,374
Net written premiums	508,801	481,952	1,033,275	898,196
Premiums earned	476,127	417,401	963,097	790,577
Incurred losses and LAE	345,174	261,941	691,979	504,323
Commission and brokerage	63,413	58,212	125,616	109,465
Other underwriting expenses	67,532	57,991	138,893	112,317
Underwriting gain (loss)	$ 8	$ 39,257	$ 6,609	$ 64,472

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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		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Segment Reporting [Abstract]
Underwriting gain (loss)	$ 113,298	$ 132,275	$ 153,478	$ 240,033
Net investment income	35,153	90,709	109,354	175,243
Net realized capital gains (losses)	(479,360)	142,563	(222,493)	277,619
Corporate expense	(3,514)	(2,519)	(7,235)	(4,170)
Interest, fee and bond issue cost amortization expense	(6,922)	(9,684)	(14,382)	(19,512)
Other income (expense)	(5,122)	(5,055)	(9,620)	(5,785)
INCOME (LOSS) BEFORE TAXES	$ (346,467)	$ 348,289	$ 9,102	$ 663,428

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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		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Canada [Member]
Segment Reporting Information [Line Items]
Gross written premiums	$ 71,021	$ 47,206	$ 134,658	$ 86,256

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Related-Party Transactions (Narrative) (Details) - USD ($)			1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Jan. 01, 2019	Jan. 01, 2018	Dec. 31, 2015	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2017	Dec. 31, 2019	Dec. 17, 2019	Dec. 31, 2018	Oct. 01, 2018	Dec. 31, 2014
Related Party Transaction [Line Items]
Note Receivable - affiliated				$ 300,000,000		$ 300,000,000			$ 300,000,000
Interest income				$ 1,281,000	$ 0	$ 2,563,000	$ 0
Shares purchased and held				9,719,971		9,719,971
Shares transferred to affiliated entity			9,719,971
Shares fair value			$ 1,773,214,000
Shares received in exchange from affiliated entity for transfer			1,773.214
Preferred shares par value			$ 1,000,000
Annual dividend rate			1.75%
Interest expense				$ 4,868,000	4,868,000	$ 9,736,000	9,736,000
Additional paid-in capital				1,100,882,000		$ 1,100,882,000			$ 1,100,678,000
Subject loss reserves								$ 2,336,242,000
Duration of Stop Loss Agreement		12 months
Amount of Business Transfer								1,000,000,000
Note Payable - Affiliated [Member]
Related Party Transaction [Line Items]
Note payable - affiliated											$ 300,000,000
Interest expense					1,356,000		3,658,000
Parent Company [Member]
Related Party Transaction [Line Items]
Note Receivable - affiliated													$ 250,000,000
Note payable - affiliated										$ 300,000,000
Debt instrument, stated interest rate										1.69%
Maturity date						Dec. 31, 2028
Global Services [Member]
Related Party Transaction [Line Items]
Additional paid-in capital												$ 227,253,000
Bermuda Re [Member]
Related Party Transaction [Line Items]
Reinsurance coverage amount				$ 31,669,000	$ 19,534,000	$ 62,169,000	$ 71,007,000
Amount of Business Transfer								970,000,000
Adverse development coverage								$ 500,000,000
Catastrophe Reinsurance [Member] | Bermuda Re [Member]
Related Party Transaction [Line Items]
Reinsurance coverage amount	$ 100,000,000

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Related-Party Transactions (Amendments To The Share Repurchase Program For The Common Shares Approved For Repurchase) (Details)	Jun. 30, 2020 shares
Equity, Class of Treasury Stock [Line Items]
Common Shares Authorized for Repurchase, amount	32,000,000
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
Amendment Date, 05/22/2020 [Member]
Equity, Class of Treasury Stock [Line Items]
Common Shares Authorized for Repurchase, amount	2,000,000

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Related-Party Transactions (Dividends Received On Preferred Shares) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Dividends From Preferred Shares Of Affiliate [Member]
Related Party Transaction [Line Items]
Dividends received on preferred stock of affiliate	$ 7,758	$ 7,758	$ 15,516	$ 15,516

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Related-Party Transactions (Affiliated Quota Share Reinsurance Agreements For All New And Renewal Business For The Indicated Coverage Period) (Details) - 6 months ended Jun. 30, 2020 $ in Thousands, $ in Thousands	CAD ($)	USD ($)
Coverage Period 01/01/2010-12/31/2010 [Member]
Reinsurance [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
Coverage Period 01/01/2011-12/31/2011 [Member]
Reinsurance [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
Coverage Period 01/01/2012-12/31/2014 [Member]
Reinsurance [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
Coverage Period 01/01/2015-12/31/2016 [Member]
Reinsurance [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
Coverage Period 01/01/2017-12/31/2017 [Member]
Reinsurance [Line Items]
Ceding Company	Everest Re	Everest Re
Percent Ceded	60.00%	60.00%
Assuming Company	Bermuda Re	Bermuda Re
Type of Business	property / casualty business	property / casualty business
Single Occurrence Limit		$ 219,000
Aggregate Limit		$ 438,000
Coverage Period 01/01/2010-12/31/2010 [Member]
Reinsurance [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	$ 350,000
Aggregate Limit
Coverage Period 01/01/2011-12/31/2011 [Member]
Reinsurance [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	$ 350,000
Aggregate Limit
Coverage Period 01/01/2012-12/31/2012 [Member]
Reinsurance [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	$ 206,250
Aggregate Limit	$ 412,500
Coverage Period 01/01/2013-12/31/2013 [Member]
Reinsurance [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	$ 150,000
Aggregate Limit	$ 412,500
Coverage Period 01/01/2014-12/31/2017 [Member]
Reinsurance [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	$ 262,500
Aggregate Limit	$ 412,500
Coverage Period 01/01/2012-12/31/2017 [Member]
Reinsurance [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
Single Occurrence Limit
Aggregate Limit

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Related-Party Transactions (Schedule Of Loss Portfolio Transfer Reinsurance Agreements, Net Insurance Exposures And Reserves Were Transferred To An Affiliate) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2020 USD ($)
Effective Date 10/01/2001 [Member]
Reinsurance [Line Items]
Transferring Company	Everest Re (Belgium Branch)
Assuming Company	Bermuda Re
% of Business Transfer	100.00%
Covered Period of Transfer	All years
Effective Date 10/01/2008 [Member]
Reinsurance [Line Items]
Transferring Company	Everest Re
Assuming Company	Bermuda Re
Amount of Transfer	$ 747,022
Covered Period of Transfer	01/01/2002-12/31/2007
Effective Date 12/31/2017 [Member]
Reinsurance [Line Items]
Transferring Company	Everest Re
Assuming Company	Bermuda Re
Amount of Transfer	$ 970,000
Covered Period of Transfer	All years

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Related-Party Transactions (Premiums And Losses Ceded By The Company To Affiliate) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Mt. Logan Re Segregated Accounts [Member]
Effects of Reinsurance [Line Items]
Ceded written premiums	$ 41,864	$ 51,289	$ 137,214	$ 114,512
Ceded earned premiums	60,412	61,812	140,267	106,634
Ceded losses and LAE	36,835	30,159	74,300	64,781
Assumed written premiums
Assumed earned premiums
Assumed losses and LAE
Bermuda Re [Member]
Effects of Reinsurance [Line Items]
Ceded written premiums	31,669	19,534	62,169	71,007
Ceded earned premiums	31,813	16,598	62,313	69,122
Ceded losses and LAE	12,208	(3,417)	(9,951)	8,316
Everest International [Member]
Effects of Reinsurance [Line Items]
Ceded written premiums
Ceded earned premiums
Ceded losses and LAE	(7)	(46)	16	(36)
Everest Canada [Member]
Effects of Reinsurance [Line Items]
Assumed written premiums	(235)		1
Assumed earned premiums	(46)		(7)
Assumed losses and LAE	(948)	2,296	650	695
Lloyd's Syndicate [Member]
Effects of Reinsurance [Line Items]
Assumed written premiums	630	483	(2,401)	(8,726)
Assumed earned premiums	639	1,596	(2,183)	(17,231)
Assumed losses and LAE	$ (1,438)	$ 4,391	$ (624)	$ (3,527)

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Retirement Benefits (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 2,041,000	$ 2,276,000	$ 6,052,000	$ 4,553,000
Interest cost	2,563,000	2,930,000	5,046,000	5,860,000
Expected return on plan assets	(5,197,000)	(5,016,000)	(10,394,000)	(10,031,000)
Amortization of net (income) loss	2,462,000	1,601,000	3,675,000	3,203,000
Settlement charge		104,000		208,000
Net periodic benefit cost	1,869,000	1,895,000	4,379,000	3,793,000
Pension contributions	0	0	0	0
Other Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	311,000	286,000	452,000	573,000
Interest cost	215,000	295,000	429,000	590,000
Amortization of prior service cost	(176,000)	(144,000)	(224,000)	(289,000)
Net periodic benefit cost	$ 350,000	$ 437,000	$ 657,000	$ 874,000

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Revisions To Financial Statements (Schedule Of Prior Period Financial Statements - Operations And Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
REVENUES:
Other income (expense)	$ (5,122)	$ (5,055)	$ (9,620)	$ (5,785)
Total revenues	1,089,631	1,603,840	2,910,206	3,093,154
INCOME (LOSS) BEFORE TAXES	(346,467)	348,289	9,102	663,428
Income tax expense (benefit)	(75,874)	67,367	(36,950)	130,898
NET INCOME (LOSS)		280,922		532,530
COMPREHENSIVE INCOME (LOSS)	$ (13,258)	348,551	$ 125,036	698,307
As Previously Reported [Member]
REVENUES:
Other income (expense)		(3,812)		(5,026)
Total revenues		1,605,083		3,093,913
INCOME (LOSS) BEFORE TAXES		349,532		664,187
Income tax expense (benefit)		67,628		131,057
NET INCOME (LOSS)		281,904		533,130
COMPREHENSIVE INCOME (LOSS)		349,533		698,907
Impact of Revisions [Member]
REVENUES:
Other income (expense)		(1,243)		(759)
Total revenues		(1,243)		(759)
INCOME (LOSS) BEFORE TAXES		(1,243)		(759)
Income tax expense (benefit)		(261)		(159)
NET INCOME (LOSS)		(982)		(600)
COMPREHENSIVE INCOME (LOSS)		$ (982)		$ (600)

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Revisions To Financial Statements (Schedule Of Prior Period Financial Statements - Stockholder's Equity) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2019
Error Corrections And Prior Period Adjustments Restatement [Line Items]
Net income (loss)	$ 280,922		$ 532,530
Ending balance,	5,735,239		5,735,239
Retained Earnings [Member]
Error Corrections And Prior Period Adjustments Restatement [Line Items]
Beginning balance,	4,314,306	$ 4,062,696	4,062,696
Net income (loss)	280,922	251,608
Ending balance,	4,595,227	4,314,306	4,595,227
As Previously Reported [Member]
Error Corrections And Prior Period Adjustments Restatement [Line Items]
Net income (loss)	281,904		533,130
Ending balance,	5,743,746		5,743,746
As Previously Reported [Member] | Retained Earnings [Member]
Error Corrections And Prior Period Adjustments Restatement [Line Items]
Beginning balance,	4,321,830	4,070,604	4,070,604
Net income (loss)	281,904	251,226
Ending balance,	4,603,734	4,321,830	4,603,734
Impact of Revisions [Member]
Error Corrections And Prior Period Adjustments Restatement [Line Items]
Net income (loss)	(982)		(600)
Ending balance,	(8,507)		(8,507)
Impact of Revisions [Member] | Retained Earnings [Member]
Error Corrections And Prior Period Adjustments Restatement [Line Items]
Beginning balance,	(7,524)	(7,908)	(7,908)
Net income (loss)	(982)	382
Ending balance,	$ (8,507)	$ (7,524)	$ (8,507)

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Revisions To Financial Statements (Schedule Of Prior Period Financial Statements - Cash Flows) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 280,922		$ 532,530
Decrease (increase) in funds held by reinsureds, net		$ (13,336)	(13,929)
Decrease (increase) in income taxes		$ (41,843)	214,671
As Previously Reported [Member]
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	281,904		533,130
Decrease (increase) in funds held by reinsureds, net			(14,688)
Decrease (increase) in income taxes			214,830
Impact of Revisions [Member]
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (982)		(600)
Decrease (increase) in funds held by reinsureds, net			759
Decrease (increase) in income taxes			$ (159)