Everest Group (EG) 10-K risk factor changes: FY2014 vs FY2013

Prolonged and severe disruptions in the [added: overall] public debt and equity markets, such as occurred during 2008, could result in significant realized and unrealized losses in our investment portfolio.

| Calendar year: | [removed: |] Pre-tax catastrophe losses | | | [added: |]

| 2013 | | [removed: $] | 195.0 | |

We use these loss projections to estimate our potential catastrophe losses in certain geographic areas and decide on the [removed: purchase] [added: placement] of retrocessional coverage or other actions to limit the extent of potential losses in a given geographic area.

By way of illustration, during the past five calendar years, the reserve re-estimation process resulted in a decrease to our pre-tax net income in [removed: two] [added: one] of the years:

| Calendar year: | [removed: |] Effect on pre-tax net income | | | | [added: | |]

| (Dollars in millions) | | | | | | [added: |]

| 2013 | | [removed: $] | 18.2 | | increase | [added: |]

| 2012 | | | 3.7 | | increase | [added: |]

| 2011 | | | 3.7 | | decrease | [added: |]

| 2010 | | | 30.9 | | increase | [added: |]

At year-end [removed: 2013, 4.2%] [added: 2014, 4.9%] of our gross reserves were comprised of A&E reserves.

[removed: We] [added: Historically, we] generally [removed: purchase] [added: purchased] reinsurance from other third parties only when we expect a net benefit.

| | [added: 2014 |] 2013 | 2012 | 2011 | 2010 | [removed: 2009 |]

| Percentage of ceded written premiums to gross written premiums | [added: 8.6% |] 4.1% | 5.3% | 4.1% | 6.1% | [removed: 4.8% |]

The worldwide net premium written by the Top 40 global reinsurance groups, for both life and non-life business, was estimated to be [removed: $185] [added: $202] billion in [removed: 2012] [added: 2013] according to data compiled by Standard & Poor’s.

The leaders in this market are Munich Re, Swiss Re, Hannover [removed: Ruckversicherung] [added: Rueckversicherung] AG, Berkshire Hathaway [removed: Inc.,] [added: Re, SCOR SE] and syndicates at Lloyd’s.

Taranto (age [removed: 64)] [added: 65)] and existing key executive officers and to attract and retain additional qualified personnel in the future.

Addesso (age [removed: 60),] [added: 61),] Executive Vice President and Chief Financial Officer, Craig Howie (age [removed: 50),] [added: 51),] Executive Vice President and Chief Underwriting Officer, John P.

Doucette (age [removed: 48)] [added: 49)] and Executive Vice President, General Counsel, Chief Compliance Officer and Secretary, Sanjoy Mukherjee (age [removed: 47).][added: 48).]

Currently, all [removed: four of] our Bermuda-based professional employees who require work permits have been granted permits by the Bermuda government that expire at various times between [removed: February 2015] [added: August 2016] and February 2017.

The Company has an employment contract with Mr. de Saram, which was filed with the SEC and provides for term of employment ending on [removed: November 1, 2014.][added: June 30, 2016.]

| (Dollars in millions) | | December 31, [removed: 2013] [added: 2014] | | | | % of Total | | |

| Non-agency residential | | | [removed: 4.8] [added: 2.7] | | | | 0.0 | % |

| Other asset-backed | | | [removed: 173.0] [added: 341.2] | | | | [removed: 1.1] [added: 2.0] | % |

| Total asset-backed | | | [removed: 2,727.4] [added: 2,768.8] | | | | [removed: 16.4] [added: 15.9] | % |

| Other fixed income | | | [removed: 9,909.5] [added: 10,332.3] | | | | [removed: 59.7] [added: 59.3] | % |

| Total fixed income, at market value | | | [removed: 12,636.9] [added: 13,101.1] | | | | [removed: 76.1] [added: 75.2] | % |

| Fixed maturities, at fair value | | | [removed: 19.4] [added: 1.5] | | | | [removed: 0.1] [added: 0.0] | % |

| Equity securities, at market value | | | [removed: 144.1] [added: 140.2] | | | | [removed: 0.9] [added: 0.8] | % |

| Equity securities, at fair value | | | [removed: 1,462.1] [added: 1,447.8] | | | | [removed: 8.8] [added: 8.3] | % |

| Other invested assets | | | [removed: 508.4] [added: 601.9] | | | | [removed: 3.1] [added: 3.5] | % |

| Cash and short-term investments | | | [removed: 1,825.6] [added: 2,143.4] | | | | [removed: 11.0] [added: 12.2] | % |

| Total investments and cash | | $ | [removed: 16,596.5] [added: 17,435.9] | | | | 100.0 | % |

Our [removed: functional] [added: reporting] currency is the U.S. dollar, and exchange rate [removed: fluctuations] [added: fluctuations, especially] relative to the U.S. [removed: dollar] [added: dollar,] may materially impact our results and financial position.

In [removed: 2013,] [added: 2014,] we wrote approximately [removed: 28.8%] [added: 28.4%] of our coverages in non-U.S. currencies; as of December 31, [removed: 2013,] [added: 2014,] we maintained approximately [removed: 15.7%] [added: 14.1%] of our investment portfolio in investments denominated in non-U.S. currencies.

During [removed: 2013, 2012] [added: 2014, 2013] and [removed: 2011,] [added: 2012,] the impact on our quarterly pre-tax net income from exchange rate fluctuations ranged from a loss of [removed: $17.0] [added: $13.0] million to a gain of $31.8 million.

[removed: In addition, these] [added: Group’s bye-laws contain] provisions [added: that] could delay or prevent a change of control that a shareholder might consider favorable.

As of December 31, [removed: 2013,] [added: 2014,] Holdings owned 9,719,971 or [removed: 17.0%] [added: 17.9%] of the outstanding common shares of Group.

[added: However,] Delaware law does not provide for [added: the designation of] alternate [added: directors with authority to attend or vote at a meeting of the board of] directors.

There could also be disruption in individual market sectors, such as occurred in the energy sector during the fourth quarter of 2014.

| 2014 | | $ | 62.2 | |

| --- | --- | --- | --- | --- | --- | --- |

| 2014 | | $ | 39.9 | | increase | |

With the expansion of the capital markets into insurance linked financial instruments, we increased our use of capital market products for catastrophe reinsurance during 2014.

In addition, some of our quota share contracts with larger retrocessions were increased during 2014.

| Commercial | | $ | 241.7 | | | | 1.4 | % |

| Agency residential | | | 2,183.2 | | | | 12.5 | % |

Delaware law permits a director to appoint another director as an alternate to attend any board committee meeting.

Furthermore, the court would give consideration to acts that are

This would reduce our net income.

| 2009 | | | 67.4 | |

| --- | --- | --- | --- | --- | --- |

| 2009 | | | 128.8 | | decrease |

Changes in the availability and cost of reinsurance, which are subject to market conditions that are outside of our control, have reduced to some extent our ability to use reinsurance to tailor the risks we assume on a contract or program basis or to mitigate or balance exposures across our reinsurance operations.

| Commercial | | $ | 270.5 | | | | 1.6 | % |

| Agency residential | | | 2,279.1 | | | | 13.7 | % |

Group’s bye-laws contain provisions that may entrench directors and make it more difficult for shareholders to replace directors even if the shareholders consider it beneficial to do so.

| · | directors currently serve staggered three-year terms, meaning that the members of only one of three classes of directors are selected each year (although the staggered board structure will be phased out between 2012 and 2014); |

| --- | --- |

| · | shareholders have limited ability to remove directors; |

If Group was a Delaware corporation, any

Our competitors include independent reinsurance and insurance companies, subsidiaries or affiliates of established worldwide insurance companies, reinsurance departments of certain insurance [removed: companies and] [added: companies,] domestic and international underwriting operations, including underwriting syndicates at [removed: Lloyd’s.][added: Lloyd’s and certain government sponsored risk transfer vehicles.]

In addition, the lack of strong barriers to entry into the reinsurance business and [added: recently,] the [removed: potential for] securitization of reinsurance and insurance risks through capital markets provide additional sources of potential reinsurance and insurance capacity and competition.

Worldwide insurance and reinsurance market conditions continued to be very competitive, particularly in the [added: property catastrophe and] casualty [added: reinsurance] lines of business.

Generally, there was ample insurance and reinsurance capacity relative to [removed: demand.][added: demand, as well as, additional capital from the capital markets through insurance linked financial instruments.]

[removed: Catastrophe rates] [added: Rates] tend to fluctuate by [removed: global region,] [added: specific region and products,] particularly areas recently impacted by large catastrophic events.

During the second and third quarters of 2013, Canada experienced historic flooding in Alberta and Toronto, which [removed: will likely result] [added: resulted] in higher [removed: future] catastrophe [removed: rates.][added: rates in these areas during 2014.]

This lower level of losses, combined with increased competition [removed: is putting] [added: resulted in] downward pressure on rates in certain geographical [removed: areas.][added: areas during 2014.]

Overall, we believe that [removed: current marketplace conditions, particularly for catastrophe coverages, provide profit opportunities for us] given our [added: size,] strong ratings, distribution system, [removed: reputation] [added: reputation, expertise] and [removed: expertise.][added: capital market vehicle activity the current marketplace conditions provide profit opportunities.]

| (Dollars in millions) | | [removed: 2013] [added: 2014] | | | | [removed: 2012] [added: 2013] | | | | [removed: 2011] [added: 2012] | | | | | [removed: 2013/2012] [added: 2014/2013] | | | | [removed: 2012/2011] [added: 2013/2012] | |

| Gross written premiums | | $ | [removed: 5,218.6] [added: 5,749.0] | | | $ | [removed: 4,310.5] [added: 5,218.6] | | | $ | [removed: 4,286.2] [added: 4,310.5] | | | | [removed: 21.1] [added: 10.2] | % | | | [removed: 0.6] [added: 21.1] | % |

| Net written premiums | | | [removed: 5,004.8] [added: 5,256.9] | | | | [removed: 4,081.1] [added: 5,004.8] | | | | [removed: 4,108.9] [added: 4,081.1] | | | | [removed: 22.6] [added: 5.0] | % | | | [removed: \-0.7] [added: 22.6] | % |

| Premiums earned | | $ | [removed: 4,753.5] [added: 5,169.1] | | | $ | [removed: 4,164.6] [added: 4,753.5] | | | $ | [removed: 4,101.3] [added: 4,164.6] | | | | [removed: 14.1] [added: 8.7] | % | | | [removed: 1.5] [added: 14.1] | % |

| Net investment income | | | [removed: 548.5] [added: 530.6] | | | | [removed: 600.2] [added: 548.5] | | | | [removed: 620.0] [added: 600.2] | | | | [removed: \-8.6] [added: \-3.3] | % | | | [removed: \-3.2] [added: \-8.6] | % |

| Net realized capital gains (losses) | | | [removed: 300.2] [added: 84.0] | | | | [removed: 164.4] [added: 300.2] | | | | [removed: 6.9] [added: 164.4] | | | | [removed: 82.6] [added: \-72.0] | % | | [removed: NM] | [added: 82.6] | [added: %] |

| Net derivative gain (loss) | | | [removed: 44.0] [added: (11.6] | [added: )] | | | [removed: (9.7] [added: 44.0] | [removed: )] | | | [removed: (11.3] [added: (9.7] | ) | | [removed: NM] | [added: \-126.3] | [added: %] | | [added: NM] | [removed: \-13.5] | [removed: %] |

| Other income (expense) | | | [removed: (5.5] [added: 18.4] | [removed: )] | | | [removed: 3.3] [added: (5.5] | [added: )] | | | [removed: (23.1] [added: 3.3] | [removed: )] | | NM | | | | [added: NM] | [removed: \-114.4] | [removed: %] |

| Total revenues | | | [removed: 5,640.8] [added: 5,790.6] | | | | [removed: 4,922.8] [added: 5,640.8] | | | | [removed: 4,694.0] [added: 4,922.8] | | | | [removed: 14.6] [added: 2.7] | % | | | [removed: 4.9] [added: 14.6] | % |

| Incurred losses and loss adjustment expenses | | | [removed: 2,800.3] [added: 2,906.5] | | | | [removed: 2,745.3] [added: 2,800.3] | | | | [removed: 3,726.2] [added: 2,745.3] | | | | [removed: 2.0] [added: 3.8] | % | | | [removed: \-26.3] [added: 2.0] | % |

| Commission, brokerage, taxes and fees | | | [removed: 977.6] [added: 1,135.6] | | | | [removed: 952.7] [added: 977.6] | | | | [removed: 950.5] [added: 952.7] | | | | [removed: 2.6] [added: 16.2] | % | | | [removed: 0.2] [added: 2.6] | % |

| Other underwriting expenses | | | [removed: 237.1] [added: 240.4] | | | | [removed: 207.7] [added: 237.1] | | | | [removed: 182.4] [added: 207.7] | | | | [removed: 14.2] [added: 1.4] | % | | | [removed: 13.8] [added: 14.2] | % |

| Corporate expenses | | | [removed: 24.8] [added: 23.4] | | | | [removed: 24.0] [added: 24.8] | | | | [removed: 16.5] [added: 24.0] | | | | [removed: 3.5] [added: \-5.6] | % | | | [removed: 45.7] [added: 3.5] | % |

| Interest, fees and bond issue cost amortization expense | | | [removed: 46.1] [added: 38.5] | | | | [removed: 53.7] [added: 46.1] | | | | [removed: 52.3] [added: 53.7] | | | | [removed: \-14.1] [added: \-16.4] | % | | | [removed: 2.6] [added: \-14.1] | % |

| Total claims and expenses | | | [removed: 4,085.9] [added: 4,344.5] | | | | [removed: 3,983.3] [added: 4,085.9] | | | | [removed: 4,927.9] [added: 3,983.3] | | | | [removed: 2.6] [added: 6.3] | % | | | [removed: \-19.2] [added: 2.6] | % |

| INCOME (LOSS) BEFORE TAXES | | | [removed: 1,555.0] [added: 1,446.1] | | | | [removed: 939.5] [added: 1,555.0] | | | | [removed: (233.9] [added: 939.5] | [removed: )] | | | [removed: 65.5] [added: \-7.0] | % | | [removed: NM] | [added: 65.5] | [added: %] |

| Income tax expense (benefit) | | | [removed: 289.7] [added: 187.7] | | | | [removed: 110.6] [added: 289.7] | | | | [removed: (153.5] [added: 110.6] | [removed: )] | | | [removed: 162.0] [added: \-35.2] | % | | | [removed: \-172.1] [added: 162.0] | % |

| NET INCOME (LOSS) | | $ | [removed: 1,265.3] [added: 1,258.5] | | | $ | [removed: 829.0] [added: 1,265.3] | | | $ | [removed: (80.5] [added: 829.0] | [removed: )] | | | [removed: 52.6] [added: \-0.5] | % | | [removed: NM] | [added: 52.6] | [added: %] |

| Net (income) loss attributable to noncontrolling interests | | | [removed: (5.9] [added: (59.3] | ) | | | [removed: \-] [added: (5.9] | [added: )] | | | \- | | | NM | | | | NM | | |

| NET INCOME (LOSS) ATTRIBUTABLE TO EVEREST RE GROUP | | $ | [removed: 1,259.4] [added: 1,199.2] | | | $ | [removed: 829.0] [added: 1,259.4] | | | $ | [removed: (80.5] [added: 829.0] | [removed: )] | | | [removed: 51.9] [added: \-4.8] | % | | [removed: NM] | [added: 51.9] | [added: %] |

| Loss ratio | | | [removed: 58.9] [added: 56.2] | % | | | [removed: 65.9] [added: 58.9] | % | | | [removed: 90.9] [added: 65.9] | % | | | [removed: (7.0] [added: (2.7] | ) | | | [removed: (25.0] [added: (7.0] | ) |

| Commission and brokerage ratio | | | [removed: 20.6] [added: 22.0] | % | | | [removed: 22.9] [added: 20.6] | % | | | [removed: 23.2] [added: 22.9] | % | | | [removed: (2.3] [added: 1.4] | [removed: )] | | | [removed: (0.3] [added: (2.3] | ) |

| Other underwriting expense ratio | | | [removed: 5.0] [added: 4.6] | % | | | 5.0 | % | | | [removed: 4.4] [added: 5.0] | % | | | [removed: \-] [added: (0.4] | [added: )] | | | [removed: 0.6] [added: \-] | |

| Combined ratio | | | [removed: 84.5] [added: 82.8] | % | | | [removed: 93.8] [added: 84.5] | % | | | [removed: 118.5] [added: 93.8] | % | | | [removed: (9.3] [added: (1.7] | ) | | | [removed: (24.7] [added: (9.3] | ) |

| (Dollars in millions, except per share amounts) | | | [removed: 2013] [added: 2014] | | | | [removed: 2012] [added: 2013] | | | | [removed: 2011] [added: 2012] | | | | [removed: 2013/2012] [added: 2014/2013] | | | | [removed: 2012/2011] [added: 2013/2012] | |

| Total investments and cash | | $ | [removed: 16,596.5] [added: 17,435.9] | | | $ | [removed: 16,576.2] [added: 16,596.5] | | | $ | [removed: 15,797.4] [added: 16,576.2] | | | | [removed: 0.1] [added: 5.1] | % | | | [removed: 4.9] [added: 0.1] | % |

| Total assets | | | [removed: 19,808.0] [added: 20,817.8] | | | | [removed: 19,777.9] [added: 19,808.0] | | | | [removed: 18,893.6] [added: 19,777.9] | | | | [removed: 0.2] [added: 5.1] | % | | | [removed: 4.7] [added: 0.2] | % |

| Loss and loss adjustment expense reserves | | | [removed: 9,673.2] [added: 9,720.8] | | | | [removed: 10,069.1] [added: 9,673.2] | | | | [removed: 10,123.2] [added: 10,069.1] | | | | [removed: \-3.9] [added: 0.5] | % | | | [removed: \-0.5] [added: \-3.9] | % |

| Total debt | | | [removed: 488.3] [added: 638.4] | | | | [removed: 818.2] [added: 488.3] | | | | [removed: 818.1] [added: 818.2] | | | | [removed: \-40.3] [added: 30.7] | % | | | [removed: 0.0] [added: \-40.3] | % |

| Total liabilities | | | [removed: 12,746.4] [added: 12,945.2] | | | | [removed: 13,044.4] [added: 12,746.4] | | | | [removed: 12,822.2] [added: 13,044.4] | | | | [removed: \-2.3] [added: 1.6] | % | | | [removed: 1.7] [added: \-2.3] | % |

| Redeemable noncontrolling interests - Mt. Logan Re | | | [removed: 93.4] [added: 421.6] | | | | [removed: \-] [added: 93.4] | | | | \- | | | NM | | | | NM | | |

| Shareholders' equity | | | [removed: 6,968.3] [added: 7,451.1] | | | | [removed: 6,733.5] [added: 6,968.3] | | | | [removed: 6,071.4] [added: 6,733.5] | | | | [removed: 3.5] [added: 6.9] | % | | | [removed: 10.9] [added: 3.5] | % |

These financial instruments such as side cars, catastrophe bonds and collateralized reinsurance funds, provide capital markets with access to insurance and reinsurance risk exposure.

The capital markets demand for these products is being primarily driven by the current low interest environment and the desire to achieve greater risk diversification and potentially higher returns on their investments.

This increased competition is generally having a negative impact on rates, terms and conditions; however, the impact varies widely by market and coverage.

Catastrophe results during 2014 were also generally benign, which could have a negative impact on worldwide regional catastrophe markets during 2015.

Gross written premiums increased by 10.2% to $5,749.0 million in 2014, compared to $5,218.6 million in 2013, reflecting a $462.5 million, or 11.8%, increase in our reinsurance business and a $118.2 million increase from the Mt.

Logan Re segment, which commenced operations in the third quarter of 2013, partially offset by a $50.4 million, or 4.0%, decrease in our insurance business.

The decrease in insurance premiums was primarily due to lower crop premiums, partially offset by an increase in non-standard auto business.

Net written premiums increased by 5.0% to $5,256.9 million in 2014 compared to $5,004.8 million in 2013.

The variance between the increase in gross written premiums

compared to the increase in net written premiums is primarily due to a higher utilization of reinsurance related to the new quota share contracts.

Premiums earned increased by 8.7% to $5,169.1 million in 2014, compared to $4,753.5 million in 2013.

| 2014 | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Attritional (a) | | $ | 2,856.4 | | | | 55.2 | % | | | $ | (12.1 | ) | | | \-0.2 | % | | | $ | 2,844.3 | | | | 55.0 | % | |

| Catastrophes | | | 90.0 | | | | 1.7 | % | | | | (27.8 | ) | | | \-0.5 | % | | | | 62.2 | | | | 1.2 | % | |

| Total | | $ | 2,946.4 | | | | 56.9 | % | | | $ | (39.9 | ) | | | \-0.7 | % | | | $ | 2,906.5 | | | | 56.2 | % | |

| Variance 2014/2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Attritional | | $ | 232.9 | | | | \- | | pts | | $ | 6.1 | | | | 0.2 | | pts | | $ | 239.0 | | | | 0.2 | | pts |

| Catastrophes | | | (105.0 | ) | | | (2.4 | ) | pts | | | (27.8 | ) | | | (0.5 | ) | pts | | | (132.8 | ) | | | (2.9 | ) | pts |

| Total segment | | $ | 127.9 | | | | (2.4 | ) | pts | | $ | (21.7 | ) | | | (0.3 | ) | pts | | $ | 106.2 | | | | (2.7 | ) | pts |

Incurred losses and LAE increased by 3.8% to $2,906.5 million for the year ended December 31, 2014 compared to $2,800.3 million for the year ended December 31, 2013, primarily due to increases in current year attritional losses, partially offset by a reduction in current year catastrophe losses.

The $12.1 million of favorable prior years development for 2014 is a combination of $174.7 million of favorable development in the reinsurance segments, related primarily to treaty casualty and treaty property reserves, partially offset by $137.8 million of development on A&E reserves and $24.9 million of development on insurance reserves, primarily related to construction liability and umbrella business.

The $90.0 million of current year catastrophe losses for the year ended December 31, 2014 represented 1.7 points and related to the Japan snowstorm ($31.5 million), Hurricane Odile ($22.0 million), the Chilean earthquake ($21.5 million) and the Brisbane hailstorm ($15.0 million).

These changes were primarily due to the impact of the increase in premiums earned, changes in the mix of business and higher contingent commissions.

The increase in other underwriting expenses for 2014 compared to 2013 was mainly due to the impact of the increase in premiums earned.

The decrease was primarily due to the redemption of $329.9 million of trust preferred securities in May 2013 and the maturity of $250.0 million of senior notes on October 15, 2014, partially offset by the impact of the issuance of $400.0 million of senior notes in June 2014.

Income tax expense is primarily a function of the geographic location of the Company’s pre-tax income and the statutory tax rates in those jurisdictions, as affected by tax-exempt investment income and as calculated under the annualized effective tax rate (“AETR”) method.

The decrease in income tax expense for 2014 compared to 2013 is primarily due to lower net realized capital gains in the U.S. and the realization of additional foreign tax credits.

Our combined ratio decreased by 1.7 points to 82.8% in 2014 compared to 84.5% in 2013.

The commission and brokerage ratio components increased 1.4 points in 2014 primarily due to changes in the mix of business and higher contingent commissions.

The fixed maturity and equity sales in 2014 related primarily to adjusting the portfolios for overall market changes and individual credit shifts along with maintaining a balanced foreign currency exposure.

Gross written premiums increased by 12.7% to $2,039.6 million in 2014 from $1,809.7 million in 2013, primarily due to new business opportunities, particularly for contracts with catastrophe exposed risks.

Net written premiums increased by 9.8% to $1,983.8 million in 2014 compared to $1,807.1 million in 2013, which is in line with the increase in gross written premiums combined with a higher use of reinsurance for catastrophe exposures.

Premiums earned increased 18.9% to $1,986.8 million in 2014 compared to $1,671.5 million in 2013.

| 2014 | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Attritional | | $ | 933.3 | | | | 47.0 | % | | | $ | 24.5 | | | | 1.2 | % | | | $ | 957.8 | | | | 48.2 | % | |

| Catastrophes | | | 12.5 | | | | 0.6 | % | | | | (15.8 | ) | | | \-0.8 | % | | | | (3.3 | ) | | | \-0.2 | % | |

| Total segment | | $ | 945.8 | | | | 47.6 | % | | | $ | 8.7 | | | | 0.4 | % | | | $ | 954.5 | | | | 48.0 | % | |

| Variance 2014/2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Attritional | | $ | 151.5 | | | | 0.3 | | pts | | $ | 61.2 | | | | 3.4 | | pts | | $ | 212.6 | | | | 3.7 | | pts |

| Catastrophes | | | (39.3 | ) | | | (2.5 | ) | pts | | | (33.5 | ) | | | (1.9 | ) | pts | | | (72.8 | ) | | | (4.4 | ) | pts |

Competition and its effect on rates, terms and conditions vary widely by market and coverage yet continued to be most prevalent in the U.S. casualty insurance and reinsurance markets and additional capacity from the capital markets is impacting worldwide catastrophe rates.

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | | | | | | | | | | | | | | | | | | |

gross written premiums.

Gross written premiums increased by 0.6% to $4,310.5 million in 2012, compared to $4,286.2 million in 2011, reflecting a $97.5 million increase in our insurance business, partially offset by a $73.1 million decrease in our reinsurance business.

The increase in insurance premiums was primarily due to the growth in crop and primary A&H medical stop loss insurance, partially offset by the termination and runoff of several large casualty programs.

Eliminating the effects of reinstatement premiums, which were higher in 2011 due to a higher level of catastrophe losses, and foreign currency fluctuations, gross written premiums were up 2% year over year.

Net written premiums decreased 0.7% to $4,081.1 million in 2012 compared to $4,108.9 million in 2011.

The variance between the changes in gross and net written premiums was primarily attributable to the growth in the crop business, for which the Company uses a higher level of reinsurance.

Premiums earned increased by 1.5% to $4,164.6 million in 2012, compared to $4,101.3 million in 2011.

The fluctuations in premiums earned in comparison to net written premiums were primarily attributable to changes in the mix of business, particularly crop insurance which has a different premiums earning pattern.

| 2011 | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Attritional (a) | | $ | 2,422.1 | | | | 59.1 | % | | | $ | 3.7 | | | | 0.1 | % | | | $ | 2,425.8 | | | | 59.2 | % | |

| Total | | $ | 3,722.5 | | | | 90.8 | % | | | $ | 3.7 | | | | 0.1 | % | | | $ | 3,726.2 | | | | 90.9 | % | |

| Variance 2012/2011 | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Attritional (a) | | $ | (83.2 | ) | | | (2.9 | ) | pts | | $ | (7.4 | ) | | | (0.2 | ) | pts | | $ | (90.6 | ) | | | (3.1 | ) | pts |

| Catastrophes | | | (890.4 | ) | | | (21.9 | ) | pts | | | \- | | | | \- | | pts | | | (890.4 | ) | | | (21.9 | ) | pts |

| Total | | $ | (973.6 | ) | | | (24.8 | ) | pts | | $ | (7.4 | ) | | | (0.2 | ) | pts | | $ | (980.9 | ) | | | (25.0 | ) | pts |

Incurred losses and LAE decreased by 26.3% to $2,745.3 million for the year ended December 31, 2012 compared to $3,726.2 million in 2011, representing 25.0 loss ratio points.

Current year 2012 catastrophe losses discussed above were lower by $890.4 million, or 21.9 points, period over period.

The $1,300.4 million of current year catastrophe losses for 2011 related primarily to the Japanese earthquake and tsunami ($531.7 million), the 2011 New Zealand earthquake ($305.8 million), the Thailand floods ($225.0 million), U.S. storms ($60.6 million), the 2011 Australian floods ($56.1 million) and Hurricane Irene ($38.0 million) as well as $50.0 million of IBNR reserves for these 2011 catastrophe events collectively, which were not allocated to a specific event.

During 2012 and 2013, $41.0 million and $3.9 million, respectively, of the IBNR reserve was allocated to specific 2011 catastrophes, leaving $5.1 million of unallocated IBNR reserves at December 31, 2013.

Current year attritional losses decreased $83.2 million, representing 2.9 loss ratio points, due to a shift in mix of business towards excess of loss business, which generally has lower attritional losses.

The increase is due primarily to the one-time effect of the non-renewal of a Florida quota share contract and the adoption of new accounting standards concerning the accounting for acquisition costs, which increased expenses in 2012.

The increased expenses resulting from these two factors were partially offset by an increase in excess of loss business which carries a lower commission than pro rata business.

The increase in other underwriting expenses for 2012 compared to 2011 was mainly due to higher share-based compensation expenses and employee benefit plan expenses.

The increase in corporate expenses were mainly due to higher share-based compensation expense.

The increase was primarily due to additional costs for the new Group Credit Facility signed in June, 2012.

Our income tax is primarily a function of the statutory tax rates and corresponding pre-tax income in the jurisdictions where we operate, coupled with the impact from tax-preferenced investment income.

The increase in the tax expense/(benefit) between 2013 and 2012, as well as 2012 versus 2011, is primarily due to higher taxable income from improved underwriting margins and capital gains in each successive year.

The income tax expense for year ended December 31, 2012, also reflects tax benefits of $17.5 million realized due to corrections of understatements in the deferred tax asset account and $31.9 million of tax benefits from a reduction in our reserve for uncertain tax positions due to the re-measurement of our exposure following the closing of an IRS audit.

The increase was primarily driven by the decline in catastrophe losses in 2012.

Our net income attributable to Everest Re Group was $1,259.4 million and $829.0 million in 2013 and 2012, respectively, and our net loss attributable to Everest Re Group was $80.5 million in 2011.

Our combined ratio decreased by 24.7 points to 93.8% in 2012 compared to 118.5% in 2011.

The commission and brokerage ratio component slightly decreased over the same period last year due to an increase in excess of loss business which carries a lower commission than pro rata business, partially offset by the one-time effect of the non-renewal of the Florida quota share and the adoption of new accounting standards concerning the accounting for acquisition costs.

Eliminating the impact of reinstatement premiums, contingent commissions, and these one-time items, the commission and brokerage ratio improved 1.5 points to 21.2% driven by the shift in the mix of business.

| | | | . | | | | | | | | | |

| --- | --- | --- | --- | --- | --- |

| | | | | | |

The pre-tax equivalent return adjusts the yield on tax-exempt bonds to the fully taxable equivalent.

| --- | --- |

The Company had gross written premiums, in [removed: 2013,] [added: 2014,] of [removed: $5.2] [added: $5.7] billion with approximately [removed: 76%] [added: 79%] representing reinsurance and [removed: 24%] [added: 21%] representing insurance.

Shareholders’ equity at December 31, [removed: 2013] [added: 2014] was [removed: $7.0] [added: $7.5] billion.

| · | Bermuda Re, a Bermuda insurance company and a direct subsidiary of Group, is registered in Bermuda as a Class 4 insurer and long-term insurer and is authorized to write property and casualty and life and annuity business. Bermuda Re commenced business in the second half of 2000. Bermuda Re’s UK branch writes property and casualty reinsurance to the United Kingdom and European markets. At December 31, [removed: 2013,] [added: 2014,] Bermuda Re had shareholder’s equity of $3.0 billion. |

| · | Everest International Reinsurance, Ltd. (“Everest International”), a Bermuda insurance company and a direct subsidiary of Group, is registered in Bermuda as a Class 4 insurer and is authorized to write property and casualty business. Through [removed: 2013,] [added: 2014,] all of Everest International’s business has been inter-affiliate quota share reinsurance assumed from Everest Re, the UK branch of Bermuda Re and Ireland Re. At December 31, [removed: 2013,] [added: 2014,] Everest International had shareholder’s equity of [removed: $369.2] [added: $417.6] million. |

| · | Mt. Logan Re, a Bermuda insurance company and a direct subsidiary of Group, is registered in Bermuda as a Class 3 insurer and is authorized to write property and casualty reinsurance. Through [removed: 2013,] [added: 2014,] all of Mt. Logan Re’s business has been inter-affiliate reinsurance assumed from Everest Re, the UK branch of Bermuda Re and Ireland Re, and all business has been written through segregated cells. At December 31, [removed: 2013,] [added: 2014,] Mt. Logan Re had shareholders’ equity of [removed: $129.0] [added: $487.8] million. |

| · | Everest Re, a Delaware insurance company and a direct subsidiary of Holdings, is a licensed property and casualty insurer and/or reinsurer in all states, the District of Columbia and Puerto Rico and is authorized to conduct reinsurance business in Canada, Singapore and Brazil. Everest Re underwrites property and casualty reinsurance for insurance and reinsurance companies in the U.S. and international markets. At December 31, [removed: 2013,] [added: 2014,] Everest Re had statutory surplus of [removed: $2.8] [added: $2.9] billion. |

The Company’s underwriting strategies [removed: emphasizes] [added: emphasize] flexibility and responsiveness to changing market [removed: conditions, such as increased demand or favorable pricing trends.][added: conditions.]

For the [removed: 2013] [added: 2014] calendar year, no single customer (ceding company or insured) generated more than [removed: 4.9%] [added: 3%] of the Company’s gross written premiums.

Approximately 65%, [removed: 24%] [added: 21%] and [removed: 11%] [added: 14%] of the Company’s [removed: 2013] [added: 2014] gross written premiums were written in the broker reinsurance, insurance markets and direct reinsurance, respectively.

The Company’s ten largest brokers accounted for an aggregate of approximately [removed: 59%] [added: 60%] of gross written premiums in [removed: 2013.][added: 2014.]

The largest broker, Marsh and McLennan, accounts for approximately [removed: 21%] [added: 23%] of gross written premiums.

The second largest broker, Aon Benfield Re, accounted for approximately [removed: 19%] [added: 20%] of gross written premiums.

In [removed: 2013,] [added: 2014,] Arrowhead General Insurance Agency accounted for approximately 5% of the Company’s gross written premium.

The Insurance operation writes property and casualty [removed: insurance, including medical stop loss insurance,] [added: insurance] directly and through general agents, brokers and surplus lines brokers within the U.S. and Canada.

The following five year table presents the distribution of the Company’s gross written premiums by its segments: U.S. Reinsurance, International, [removed: Bermuda] [added: Bermuda, Insurance] and [removed: Insurance.][added: Mt.]

| (Dollars in millions) | | [removed: 2013] [added: 2014] | | | | | | | | [removed: 2012] [added: 2013] | | | | | | | | [removed: 2011] [added: 2012] | | | | | | | | [removed: 2010] [added: 2011] | | | | | | | | [removed: 2009] [added: 2010] | | | | | | |

| Pro Rata (1) | | $ | [removed: 631.2] [added: 665.7] | | | | [removed: 12.1] [added: 11.6] | % | | $ | [removed: 313.2] [added: 631.2] | | | | [removed: 7.3] [added: 12.1] | % | | $ | [removed: 594.9] [added: 313.2] | | | | [removed: 13.9] [added: 7.3] | % | | $ | [removed: 698.2] [added: 594.9] | | | | [removed: 16.6] [added: 13.9] | % | | $ | [removed: 648.2] [added: 698.2] | | | | [removed: 15.7] [added: 16.6] | % |

| Excess | | | [removed: 631.7] [added: 772.6] | | | | [removed: 12.1] [added: 13.4] | % | | | [removed: 534.8] [added: 631.7] | | | | [removed: 12.4] [added: 12.1] | % | | | [removed: 380.6] [added: 534.8] | | | | [removed: 8.9] [added: 12.4] | % | | | [removed: 315.9] [added: 380.6] | | | | [removed: 7.5] [added: 8.9] | % | | | [removed: 330.5] [added: 315.9] | | | | [removed: 8.0] [added: 7.5] | % |

| Pro Rata (1) | | | [removed: 342.5] [added: 382.4] | | | | [removed: 6.6] [added: 6.7] | % | | | [removed: 273.6] [added: 342.5] | | | | [removed: 6.3] [added: 6.6] | % | | | [removed: 215.5] [added: 273.6] | | | | [removed: 5.0] [added: 6.3] | % | | | [removed: 200.0] [added: 215.5] | | | | [removed: 4.8] [added: 5.0] | % | | | [removed: 194.3] [added: 200.0] | | | | [removed: 4.7] [added: 4.8] | % |

| Excess | | | [removed: 204.4] [added: 218.8] | | | | [removed: 3.9] [added: 3.8] | % | | | [removed: 189.1] [added: 204.4] | | | | [removed: 4.4] [added: 3.9] | % | | | [removed: 155.8] [added: 189.1] | | | | [removed: 3.6] [added: 4.4] | % | | | [removed: 181.3] [added: 155.8] | | | | [removed: 4.3] [added: 3.6] | % | | | [removed: 234.0] [added: 181.3] | | | | [removed: 5.7] [added: 4.3] | % |

| Total (2) | | | [removed: 1,809.7] [added: 2,039.6] | | | | [removed: 34.7] [added: 35.5] | % | | | [removed: 1,310.7] [added: 1,809.7] | | | | [removed: 30.4] [added: 34.7] | % | | | [removed: 1,346.8] [added: 1,310.7] | | | | [removed: 31.4] [added: 30.4] | % | | | [removed: 1,395.4] [added: 1,346.8] | | | | [removed: 33.2] [added: 31.4] | % | | | [removed: 1,407.1] [added: 1,395.4] | | | | [removed: 34.1] [added: 33.2] | % |

| Pro Rata (1) | | | [removed: 673.4] [added: 846.0] | | | | [removed: 12.9] [added: 14.7] | % | | | [removed: 630.9] [added: 673.4] | | | | [removed: 14.6] [added: 12.9] | % | | | [removed: 713.0] [added: 630.9] | | | | [removed: 16.6] [added: 14.6] | % | | | [removed: 701.6] [added: 713.0] | | | | [removed: 16.7] [added: 16.6] | % | | | [removed: 670.2] [added: 701.6] | | | | [removed: 16.2] [added: 16.7] | % |

| Excess | | | [removed: 426.5] [added: 467.0] | | | | [removed: 8.2] [added: 8.1] | % | | | [removed: 365.9] [added: 426.5] | | | | [removed: 8.5] [added: 8.2] | % | | | [removed: 315.7] [added: 365.9] | | | | [removed: 7.4] [added: 8.5] | % | | | [removed: 291.6] [added: 315.7] | | | | [removed: 6.9] [added: 7.4] | % | | | [removed: 241.9] [added: 291.6] | | | | [removed: 5.9] [added: 6.9] | % |

| Pro Rata (1) | | | [removed: 134.4] [added: 152.9] | | | | [removed: 2.6] [added: 2.7] | % | | | [removed: 102.6] [added: 134.4] | | | | [removed: 2.4] [added: 2.6] | % | | | [removed: 122.2] [added: 102.6] | | | | [removed: 2.9] [added: 2.4] | % | | | [removed: 120.3] [added: 122.2] | | | | 2.9 | % | | | [removed: 94.0] [added: 120.3] | | | | [removed: 2.3] [added: 2.9] | % |

| Excess | | | [removed: 111.5] [added: 116.5] | | | | [removed: 2.1] [added: 2.0] | % | | | [removed: 92.9] [added: 111.5] | | | | [removed: 2.2] [added: 2.1] | % | | | [removed: 87.6] [added: 92.9] | | | | [removed: 2.0] [added: 2.2] | % | | | [removed: 93.4] [added: 87.6] | | | | [removed: 2.2] [added: 2.0] | % | | | [removed: 78.4] [added: 93.4] | | | | [removed: 1.9] [added: 2.2] | % |

| Total (2) | | | [removed: 1,345.8] [added: 1,582.4] | | | | [removed: 25.8] [added: 27.5] | % | | | [removed: 1,192.3] [added: 1,345.8] | | | | [removed: 27.7] [added: 25.8] | % | | | [removed: 1,238.4] [added: 1,192.3] | | | | [removed: 28.9] [added: 27.7] | % | | | [removed: 1,207.0] [added: 1,238.4] | | | | [removed: 28.7] [added: 28.9] | % | | | [removed: 1,084.5] [added: 1,207.0] | | | | [removed: 26.3] [added: 28.7] | % |

| Pro Rata (1) | | | [removed: 244.6] [added: 252.4] | | | | [removed: 4.7] [added: 4.4] | % | | | [removed: 208.3] [added: 244.6] | | | | [removed: 4.8] [added: 4.7] | % | | | [removed: 213.2] [added: 208.3] | | | | [removed: 5.0] [added: 4.8] | % | | | [removed: 226.1] [added: 213.2] | | | | [removed: 5.4] [added: 5.0] | % | | | [removed: 291.1] [added: 226.1] | | | | [removed: 7.1] [added: 5.4] | % |

| Excess | | | [removed: 161.5] [added: 167.7] | | | | [removed: 3.1] [added: 2.9] | % | | | [removed: 145.1] [added: 161.5] | | | | [removed: 3.4] [added: 3.1] | % | | | [removed: 162.6] [added: 145.1] | | | | [removed: 3.8] [added: 3.4] | % | | | [removed: 173.5] [added: 162.6] | | | | [removed: 4.1] [added: 3.8] | % | | | [removed: 180.4] [added: 173.5] | | | | [removed: 4.4] [added: 4.1] | % |

| Pro Rata (1) | | | [removed: 213.9] [added: 178.5] | | | | [removed: 4.1] [added: 3.1] | % | | | [removed: 228.9] [added: 213.9] | | | | [removed: 5.3] [added: 4.1] | % | | | [removed: 204.9] [added: 228.9] | | | | [removed: 4.8] [added: 5.3] | % | | | [removed: 205.0] [added: 204.9] | | | | [removed: 4.9] [added: 4.8] | % | | | [removed: 185.6] [added: 205.0] | | | | [removed: 4.5] [added: 4.9] | % |

| Excess | | | [removed: 154.2] [added: 171.7] | | | | 3.0 | % | | | [removed: 152.1] [added: 154.2] | | | | [removed: 3.5] [added: 3.0] | % | | | [removed: 144.5] [added: 152.1] | | | | [removed: 3.4] [added: 3.5] | % | | | [removed: 128.4] [added: 144.5] | | | | [removed: 3.1] [added: 3.4] | % | | | [removed: 137.8] [added: 128.4] | | | | [removed: 3.3] [added: 3.1] | % |

| Total (2) | | | [removed: 774.3] [added: 770.3] | | | | [removed: 14.9] [added: 13.5] | % | | | [removed: 734.4] [added: 774.3] | | | | [removed: 17.1] [added: 14.9] | % | | | [removed: 725.3] [added: 734.4] | | | | [removed: 17.0] [added: 17.1] | % | | | [removed: 733.0] [added: 725.3] | | | | [removed: 17.5] [added: 17.0] | % | | | [removed: 794.8] [added: 733.0] | | | | [removed: 19.3] [added: 17.5] | % |

| Pro Rata (1) | | | [removed: 1,549.2] [added: 1,764.1] | | | | [removed: 29.7] [added: 30.7] | % | | | [removed: 1,152.4] [added: 1,549.2] | | | | [removed: 26.7] [added: 29.7] | % | | | [removed: 1,521.1] [added: 1,152.4] | | | | [removed: 35.5] [added: 26.7] | % | | | [removed: 1,625.9] [added: 1,521.1] | | | | [removed: 38.7] [added: 35.5] | % | | | [removed: 1,609.5] [added: 1,625.9] | | | | [removed: 39.0] [added: 38.7] | % |

| Excess | | | [removed: 1,219.7] [added: 1,407.3] | | | | [removed: 23.4] [added: 24.5] | % | | | [removed: 1,045.8] [added: 1,219.7] | | | | [removed: 24.3] [added: 23.4] | % | | | [removed: 858.9] [added: 1,045.8] | | | | [removed: 20.0] [added: 24.3] | % | | | [removed: 781.0] [added: 858.9] | | | | [removed: 18.6] [added: 20.0] | % | | | [removed: 752.8] [added: 781.0] | | | | [removed: 18.2] [added: 18.6] | % |

| Pro Rata (1) | | | [removed: 690.7] [added: 713.8] | | | | [removed: 13.2] [added: 12.4] | % | | | [removed: 605.1] [added: 690.7] | | | | [removed: 14.0] [added: 13.2] | % | | | [removed: 542.6] [added: 605.1] | | | | [removed: 12.7] [added: 14.0] | % | | | [removed: 525.3] [added: 542.6] | | | | [removed: 12.5] [added: 12.7] | % | | | [removed: 473.9] [added: 525.3] | | | | [removed: 11.5] [added: 12.5] | % |

| Excess | | | [removed: 470.1] [added: 507.0] | | | | [removed: 9.0] [added: 8.8] | % | | | [removed: 434.1] [added: 470.1] | | | | [removed: 10.1] [added: 9.0] | % | | | [removed: 387.9] [added: 434.1] | | | | [removed: 9.0] [added: 10.1] | % | | | [removed: 403.1] [added: 387.9] | | | | [removed: 9.6] [added: 9.0] | % | | | [removed: 450.2] [added: 403.1] | | | | [removed: 10.9] [added: 9.6] | % |

| Total (2) | | | [removed: 3,929.7] [added: 4,392.3] | | | | [removed: 75.3] [added: 76.4] | % | | | [removed: 3,237.4] [added: 3,929.7] | | | | [removed: 75.1] [added: 75.3] | % | | | [removed: 3,310.6] [added: 3,237.4] | | | | [removed: 77.2] [added: 75.1] | % | | | [removed: 3,335.3] [added: 3,310.6] | | | | [removed: 79.4] [added: 77.2] | % | | | [removed: 3,286.4] [added: 3,335.3] | | | | [removed: 79.6] [added: 79.4] | % |

| Pro Rata (1) | | | [removed: 545.6] [added: 414.0] | | | | [removed: 10.5] [added: 7.2] | % | | | [removed: 459.2] [added: 545.6] | | | | [removed: 10.7] [added: 10.5] | % | | | [removed: 341.9] [added: 459.2] | | | | [removed: 8.0] [added: 10.7] | % | | | [removed: 130.1] [added: 341.9] | | | | [removed: 3.1] [added: 8.0] | % | | | [removed: 112.6] [added: 130.1] | | | | [removed: 2.7] [added: 3.1] | % |

| Pro Rata (1) | | | [removed: 723.2] [added: 804.4] | | | | [removed: 13.9] [added: 14.0] | % | | | [removed: 613.9] [added: 723.2] | | | | [removed: 14.2] [added: 13.9] | % | | | [removed: 633.8] [added: 613.9] | | | | [removed: 14.8] [added: 14.2] | % | | | [removed: 735.4] [added: 633.8] | | | | [removed: 17.5] [added: 14.8] | % | | | [removed: 729.9] [added: 735.4] | | | | [removed: 17.7] [added: 17.5] | % |

| Total (2) | | | [removed: 1,268.7] [added: 1,218.4] | | | | [removed: 24.3] [added: 21.2] | % | | | [removed: 1,073.1] [added: 1,268.7] | | | | [removed: 24.9] [added: 24.3] | % | | | [removed: 975.6] [added: 1,073.1] | | | | [removed: 22.8] [added: 24.9] | % | | | [removed: 865.4] [added: 975.6] | | | | [removed: 20.6] [added: 22.8] | % | | | [removed: 842.6] [added: 865.4] | | | | [removed: 20.4] [added: 20.6] | % |

| Pro Rata (1) | | | \- | | | | 0.0 | % | | | \- | | | | [removed: \-] [added: 0.0] | [added: %] | | | \- | | | | \- | | | | \- | | | | \- | | | | \- | | | | \- | |

Logan Re.

| Pro Rata (1) | | | \- | | | | 0.0 | % | | | \- | | | | 0.0 | % | | | \- | | | | \- | | | | \- | | | | \- | | | | \- | | | | \- | |

to develop long-term relationships with those companies.

| Southeast U.S., Wind | | $ | 665 | | | $ | 1,075 | | | $ | 1,371 | | | $ | 1,799 | | | $ | 2,045 | | | $ | 2,258 | |

| California, Earthquake | | | 142 | | | | 473 | | | | 864 | | | | 1,256 | | | | 1,615 | | | | 1,939 | |

| Texas, Wind | | | 139 | | | | 402 | | | | 743 | | | | 1,450 | | | | 1,934 | | | | 2,190 | |

| Southeast U.S., Wind | | $ | 408 | | | $ | 638 | | | $ | 852 | | | $ | 1,083 | | | $ | 1,243 | | | $ | 1,396 | |

| California, Earthquake | | | 116 | | | | 350 | | | | 596 | | | | 846 | | | | 1,080 | | | | 1,291 | |

| Texas, Wind | | | 107 | | | | 296 | | | | 509 | | | | 952 | | | | 1,260 | | | | 1,438 | |

Providing terrorism coverage on reinsurance contracts is negotiable, and many, but not all, treaties exclude this coverage.

The U.S. Terrorism Risk Insurance Program Reauthorization Act of 2015 could provide some protection to the insurance book of business.

It might also provide indirect protection to exposed reinsurance treaties.

However, the Company is still exposed to risk of loss from terrorism due to deductibles, co-pays and uncovered lines of business.

The Company may purchase reinsurance to cover specific business written or the potential accumulation or aggregation of exposures across some or all of its operations.

Reinsurance purchasing decisions consider both the potential coverage and market conditions including the pricing, terms, conditions and availability of coverage, with the aim of securing cost effective protection.

The amount of reinsurance purchased has varied over time, reflecting the Company’s view of its exposures and the cost of reinsurance.

In recent years, the Company has increased its use of reinsurance offered through capital market facilities.

Of this amount, $102.3 million, or 15.2%, was receivable from C.V. Starr (Bermuda) (“C.V. Starr”); $75.0 million, or 11.2%, was receivable from Resolution Group Reinsurance (Barbados) Limited (“Resolution Group”); $64.6 million, or 9.6%, was receivable from Federal Crop Insurance Company (“FCIC”); $60.7 million, or 9.0%, was receivable from Zurich Vericherungs Gesellschaft (“Zurich”); $39.5 million, or 5.9%, was receivable from Transatlantic Reinsurance Company (“Transatlantic”); $37.2 million, or 5.5%, was receivable from Hannover Rueck SE (“Hannover”); $35.2 million, or 5.2%, was receivable from Axis Reinsurance Company (“Axis”) and $33.9 million, or 5.1%, was receivable from Axa Seguros Gen SA De Seguros Y Reaseguros (“Axa Seguros”).

| Cumulative (deficiency)/redundancy | | $ | (700.0 | ) | | $ | (801.7 | ) | | $ | (542.7 | ) | | $ | (143.1 | ) | | $ | (339.1 | ) | | $ | (37.4 | ) | | $ | (33.0 | ) | | $ | (31.2 | ) | | $ | 203.2 | | | $ | 175.4 | | | | | |

| at December 31, 2014 | | $ | 8,727.0 | | | $ | 10,107.0 | | | $ | 9,478.8 | | | $ | 9,207.8 | | | $ | 9,339.3 | | | $ | 9,163.4 | | | $ | 9,488.6 | | | $ | 10,230.2 | | | $ | 9,974.6 | | | $ | 9,695.0 | | | | | |

| at December 31, 2014 | | | 1,260.1 | | | | 1,129.9 | | | | 857.1 | | | | 739.9 | | | | 785.5 | | | | 810.1 | | | | 804.9 | | | | 646.0 | | | | 713.2 | | | | 635.1 | | | | | |

| at December 31, 2014 | | $ | 7,466.9 | | | $ | 8,977.1 | | | $ | 8,621.6 | | | $ | 8,467.9 | | | $ | 8,553.8 | | | $ | 8,353.3 | | | $ | 8,683.7 | | | $ | 9,584.2 | | | $ | 9,261.4 | | | $ | 9,059.9 | | | | | |

| (deficiency)/redundancy | | $ | (840.4 | ) | | $ | (931.9 | ) | | $ | (590.8 | ) | | $ | (175.7 | ) | | $ | (433.4 | ) | | $ | (206.1 | ) | | $ | (148.5 | ) | | $ | (96.2 | ) | | $ | 92.9 | | | $ | 14.2 | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| 2004 and prior | | | $ | 133.3 | | | $ | (106.8 | ) | | $ | (319.4 | ) | | $ | 63.2 | | | $ | (165.6 | ) | | $ | (84.1 | ) | | $ | (10.6 | ) | | $ | (15.4 | ) | | $ | (51.6 | ) | | $ | (143.1 | ) | | $ | (700.0 | ) |

| 2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 12.7 | | | | 12.7 | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

Logan reserves and $25.0 million of unfavorable development in the insurance segment primarily related to construction liability and umbrella business.

In 2014, during its normal exposure analysis, the Company increased its net A&E reserves by $137.8 million; $100.6 million related to its assumed reinsurance business and $37.2 million related to its direct insurance business.

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| 2014 | | | | $ | 16,831.9 | | | $ | 530.6 | | | | 3.15 | % | | $ | 84.0 | | | $ | 20.3 | |

| | | | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | |

| U.S. government agencies and corporations | | $ | 221.1 | | | $ | 10.3 | | | $ | (0.3 | ) | | $ | 231.0 | | | $ | \- | |

| Corporate securities | | | 4,626.0 | | | | 143.9 | | | | (62.9 | ) | | | 4,707.0 | | | | (6.9 | ) |

| Asset-backed securities | | | 340.8 | | | | 1.7 | | | | (1.2 | ) | | | 341.2 | | | | \- | |

| Commercial | | | 231.4 | | | | 10.7 | | | | (0.4 | ) | | | 241.7 | | | | \- | |

| Agency residential | | | 2,157.2 | | | | 37.6 | | | | (11.6 | ) | | | 2,183.2 | | | | \- | |

| Non-agency residential | | | 2.7 | | | | 0.1 | | | | (0.1 | ) | | | 2.7 | | | | \- | |

expertise.

| Southeast U.S., Wind | | $ | 600 | | | $ | 950 | | | $ | 1,231 | | | $ | 1,606 | | | $ | 1,867 | | | $ | 2,052 | |

| California, Earthquake | | | 125 | | | | 464 | | | | 854 | | | | 1,377 | | | | 1,731 | | | | 1,976 | |

| Europe, Wind | | | 177 | | | | 452 | | | | 661 | | | | 883 | | | | 1,030 | | | | 1,115 | |

| Southeast U.S., Wind | | $ | 397 | | | $ | 610 | | | $ | 796 | | | $ | 1,029 | | | $ | 1,200 | | | $ | 1,324 | |

| California, Earthquake | | | 103 | | | | 330 | | | | 589 | | | | 942 | | | | 1,168 | | | | 1,326 | |

| Europe, Wind | | | 146 | | | | 366 | | | | 533 | | | | 713 | | | | 822 | | | | 890 | |

The Company has limited exposure to losses from terrorism risk.

Because of the limited nature of terrorism exposure, the U.S. Terrorism Risk Insurance Act of 2002 and its amendments do not have a significant impact on company operations.

The Company does not typically purchase significant retrocessional coverage for specific reinsurance business written, but it will do so when management deems it to be prudent and/or cost-effective to reinsure a portion of the risks being assumed.

The Company typically considers the purchase of reinsurance to cover insurance program exposures written by the Insurance segment.

The type of reinsurance coverage considered is dependent upon individual risk exposures, individual program exposures, aggregate exposures by line of business, overall segment and corporate wide exposures and the cost effectiveness of available reinsurance.

Facultative reinsurance will typically be considered for large individual exposures and quota share reinsurance will generally be considered for entire programs of business.

The Company also considers purchasing corporate level retrocessional protection covering the potential accumulation of exposures.

Such consideration includes balancing the underlying exposures against the availability of cost-effective retrocessional protection.

Of this amount, $145.4 million, or 26.9%, was receivable from C.V. Starr (Bermuda) (“C.V. Starr”); $95.3 million, or 17.6% was receivable from Federal Crop Insurance Company (“FCIC”); $43.9 million, or 8.1%, was receivable from Transatlantic Reinsurance Company (“Transatlantic”); $37.7 million, or 7.0% was receivable from Berkley Insurance Company (“Berkley”); and $27.4 million, or 5.1%, was receivable from Munich Reinsurance America Inc. (“Munich Re”).

of each succeeding year.

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Cumulative (deficiency)/redundancy | | $ | (1,220.0 | ) | | $ | (556.9 | ) | | $ | (654.4 | ) | | $ | (388.4 | ) | | $ | 7.0 | | | $ | (201.9 | ) | | $ | 67.9 | | | $ | (12.5 | ) | | $ | (5.7 | ) | | $ | 40.5 | | | | | |

| at December 31, 2013 | | $ | 7,822.9 | | | $ | 8,552.4 | | | $ | 9,940.8 | | | $ | 9,329.0 | | | $ | 9,091.3 | | | $ | 9,257.0 | | | $ | 9,077.3 | | | $ | 9,533.3 | | | $ | 10,319.1 | | | $ | 10,210.0 | | | | | |

| at December 31, 2013 | | | 1,444.4 | | | | 1,228.5 | | | | 1,111.0 | | | | 861.6 | | | | 773.6 | | | | 840.4 | | | | 829.3 | | | | 870.0 | | | | 760.4 | | | | 785.9 | | | | | |

| at December 31, 2013 | | $ | 6,378.5 | | | $ | 7,323.8 | | | $ | 8,829.8 | | | $ | 8,467.3 | | | $ | 8,317.8 | | | $ | 8,416.5 | | | $ | 8,248.0 | | | $ | 8,663.2 | | | $ | 9,558.7 | | | $ | 9,424.1 | | | | | |

| (deficiency)/redundancy | | $ | (1,398.2 | ) | | $ | (665.8 | ) | | $ | (765.7 | ) | | $ | (441.0 | ) | | $ | (59.2 | ) | | $ | (351.1 | ) | | $ | (119.9 | ) | | $ | (193.1 | ) | | $ | (185.1 | ) | | $ | (142.5 | ) | | | | |

| 2003 and prior | | $ | (312.0 | ) | | $ | 63.4 | | | $ | (247.5 | ) | | $ | (418.6 | ) | | $ | (20.3 | ) | | $ | (133.5 | ) | | $ | (102.2 | ) | | $ | (7.4 | ) | | $ | (3.1 | ) | | $ | (39.1 | ) | | $ | (1,220.0 | ) |

| 2004 | | | | | | | 69.9 | | | | 140.7 | | | | 99.2 | | | | 83.5 | | | | (32.1 | ) | | | 18.1 | | | | (3.2 | ) | | | (12.3 | ) | | | (12.5 | ) | | | 351.1 | |

At December 31, 2013, the Company’s fixed maturity portfolio included $1.4 million in book value of asset-backed securities with sub-prime mortgage loan exposure and the market value of these investments was $1.5 million.

Sub-prime mortgage loans generally represent loans made to borrowers with limited or blemished credit records.

| 2009 | | | 14,472.8 | | | | 547.8 | | | | 3.79 | % | | | (2.3 | ) | | | 636.7 | |

| _________________________________________________________ | | | | | | | | | | | | | | | | | | | | |

| common stock and redeemable and non-redeemable preferred stocks are carried at market value. Common stock which are actively managed are carried at fair value. | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | | | | | | | | | | | | | | |

| U.S. government agencies and corporations | | $ | 302.0 | | | $ | 11.1 | | | $ | (1.0 | ) | | $ | 312.1 | |

| Corporate securities | | | 3,795.0 | | | | 247.4 | | | | (7.1 | ) | | | 4,035.3 | |

| Asset-backed securities | | | 169.6 | | | | 7.3 | | | | (0.3 | ) | | | 176.6 | |

| Commercial | | | 294.6 | | | | 28.0 | | | | (2.5 | ) | | | 320.1 | |

| Agency residential | | | 2,091.7 | | | | 63.8 | | | | (3.3 | ) | | | 2,152.2 | |

| Non-agency residential | | | 7.7 | | | | 0.6 | | | | (0.2 | ) | | | 8.1 | |

| Foreign government securities | | | 1,785.7 | | | | 133.0 | | | | (6.5 | ) | | | 1,912.2 | |

For the fiscal year ended December 31, [removed: 2013][added: 2014]

[added: |] Securities registered pursuant to Section 12(b) of the Act: [added: | | | | | | |]

| Title of Each Class Common Shares, $.01 par value per share | | [added: | |] Name of Each Exchange on Which Registered New York Stock Exchange | [added: | |]

The aggregate market value on June 30, [removed: 2013,] [added: 2014,] the last business day of the registrant’s most recently completed second quarter, of the voting shares held by non-affiliates of the registrant was [removed: $6,231,902] [added: $7,332,951] thousand.

At February 1, [removed: 2014,] [added: 2015,] the number of shares outstanding of the registrant’s common shares was [removed: 47,374,165.][added: 44,473,459.]

Certain information required by Items 10, 11, 12, 13 and 14 of Form 10-K is incorporated by reference into Part III hereof from the registrant’s proxy statement for the [removed: 2013] [added: 2014] Annual General Meeting of Shareholders, which will be filed with the Securities and Exchange Commission within 120 days of the close of the registrant’s fiscal year ended December 31, [removed: 2013.][added: 2014.]

Unresolved Staff Comments [removed: 40][added: 39]

Properties [removed: 40][added: 39]

Legal Proceedings [removed: 40][added: 39]

10-K 1 group10k2014.htm EVEREST RE GROUP 10-K 2014

| --- | --- | --- | --- | --- | --- | --- |

10-K 1 group10k2013.htm EVEREST RE GROUP 10-K 2013

| --- | --- | --- |

| | | |

Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities [removed: 40][added: 39]

Selected Financial Data [removed: 43][added: 42]

Management’s Discussion and Analysis of Financial Condition and Results of Operations [removed: 44][added: 43]

Quantitative and Qualitative Disclosures About Market Risk [removed: 81][added: 77]

Financial Statements and Supplementary Data [removed: 81][added: 77]

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure [removed: 81][added: 77]

Controls and Procedures [removed: 81][added: 77]

Directors, Executive Officers and Corporate Governance [removed: 82][added: 78]

Executive Compensation [removed: 82][added: 78]

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters [removed: 82][added: 78]

Certain Relationships and Related Transactions, and Director Independence [removed: 82][added: 78]

Principal Accountant Fees and Services [removed: 83][added: 79]

Exhibits and Financial Statement Schedules [removed: 83][added: 79]

The Company’s other [removed: nineteen] [added: twenty one] locations occupy a total of approximately [removed: 145,300] [added: 158,500] square feet, all of which are leased.

| First Quarter | | $ | [removed: 130.64] [added: 153.05] | | | $ | [removed: 110.91] [added: 137.48] | | | $ | [removed: 93.87] [added: 130.64] | | | $ | [removed: 83.35] [added: 110.91] | |

| Second Quarter | | | [removed: 135.97] [added: 161.87] | | | | [removed: 123.65] [added: 150.81] | | | | [removed: 105.13] [added: 135.97] | | | | [removed: 92.45] [added: 123.65] | |

| Third Quarter | | | [removed: 145.51] [added: 165.46] | | | | [removed: 126.36] [added: 155.91] | | | | [removed: 110.89] [added: 145.51] | | | | [removed: 100.30] [added: 126.36] | |

| Fourth Quarter | | | [removed: 159.13] [added: 176.27] | | | | [removed: 144.81] [added: 158.36] | | | | [removed: 114.60] [added: 159.13] | | | | [removed: 101.72] [added: 144.81] | |

The number of record holders of common shares as of February 1, [removed: 2014] [added: 2015] was [removed: 219.][added: 260.]

The Company declared and paid its quarterly cash dividend of $0.48 per share for [removed: each of] the [removed: four quarters of 2012 and for the] first three quarters of 2013.

The Company declared and paid its quarterly cash dividend of [removed: $0.75] [added: $0.95] per share for the fourth quarter of [removed: 2013.][added: 2014.]

On February [removed: 26, 2014,] [added: 25, 2015,] the Company’s Board of Directors declared a dividend of [removed: $0.75] [added: $0.95] per share, payable on or before March [removed: 26, 2014] [added: 25, 2015] to shareholders of record on March [removed: 12, 2014.][added: 11, 2015.]

| Issuer Purchases of Equity Securities | | | | | | | | | | | | | | | | [removed: |]

| | | | | | | | | | | | | | [removed: |] Maximum Number (or | | |

| | | | | | | | | | [removed: |] Total Number of | | | | Approximate Dollar | | |

| | | | | | | | | | [removed: |] Shares (or Units) | | | | Value) of Shares (or | | |

| | | | | | | | | | [removed: |] Purchased as Part | | | | Units) that May Yet | | |

| | [removed: |] Total Number of | | | | | | | | of Publicly | | | | Be Purchased Under | | |

| | [removed: |] Shares (or Units) | | | | Average Price Paid | | | | Announced Plans or | | | | the Plans or | | |

| Period | [removed: |] Purchased | | | | per Share (or Unit) | | | | Programs | | | | Programs (1) | | |

On July 21, 2008; February 24, 2010; February 22, 2012; [removed: and] May 15, [removed: 2013,] [added: 2013; and November 19, 2014,] the Company’s executive committee of the Board of Directors [added: has] approved subsequent amendments to the share repurchase program authorizing the Company and/or its subsidiary Holdings, to purchase up to a current aggregate of [removed: 25,000,000] [added: 30,000,000] of the Company’s shares (recognizing that the number of shares authorized for repurchase has been reduced by those shares that have already been purchased) in open market transactions, privately negotiated transactions or both.

Through February [removed: 21, 2014,] [added: 20, 2015,] the Company purchased an additional [removed: 863,673] [added: 225,554] shares for [removed: $127.0] [added: $38.1] million under the share repurchase program.

The following Performance Graph compares cumulative total shareholder returns on the Common Shares (assuming reinvestment of dividends) from December 31, [removed: 2008] [added: 2009] through December 31, [removed: 2013,] [added: 2014,] with the cumulative total return of the Standard & Poor’s 500 Index and the Standard & Poor’s Insurance (Property and Casualty) Index.

[removed: ][added: ]

| *$100 invested on [removed: 12/31/08] [added: 12/31/09] in stock or index, including reinvestment of dividends. | | | | | | | [added: | |]

| Fiscal year ending December 31. | | | | | | | [added: | |]

| Copyright© [removed: 2014] [added: 2015] S&P, a division of The McGraw-Hill Companies Inc. All rights reserved. | | | | | | | [added: | |]

| | | 2014 | | | | | | | | 2013 | | | | | | |

The Company declared and paid its quarterly cash dividend of $0.75 per share for the fourth quarter of 2013 and for the first three quarters of 2014.

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | (a) | | | | (b) | | | | (c) | | | | (d) | | |

| January 1 - 31, 2014 | | 185,619 | | | $ | 150.7663 | | | | 185,619 | | | | 4,386,798 | |

| February 1 - 28, 2014 | | 957,194 | | | $ | 146.4680 | | | | 922,054 | | | | 3,464,744 | |

| March 1 - 31, 2014 | | 584,491 | | | $ | 148.8831 | | | | 584,491 | | | | 2,880,253 | |

| April 1 - 30, 2014 | | \- | | | $ | \- | | | | \- | | | | 2,880,253 | |

| May 1 - 31, 2014 | | 393,941 | | | $ | 157.4986 | | | | 389,949 | | | | 2,490,304 | |

| June 1 - 30, 2014 | | 85,143 | | | $ | 159.1929 | | | | 85,143 | | | | 2,405,161 | |

| July 1 - 31, 2014 | | 143,086 | | | $ | 159.4543 | | | | 143,086 | | | | 2,262,075 | |

| August 1 - 31, 2014 | | 234,777 | | | $ | 158.1341 | | | | 234,777 | | | | 2,027,298 | |

| September 1 - 30, 2014 | | 96,492 | | | $ | 161.9591 | | | | 92,944 | | | | 1,934,354 | |

| October 1 - 31, 2014 | | 19,474 | | | $ | 165.7776 | | | | 18,800 | | | | 1,915,554 | |

| November 1 - 30, 2014 | | 101,683 | | | $ | 169.8669 | | | | 100,529 | | | | 6,815,025 | |

| December 1 - 31, 2014 | | 471,462 | | | $ | 169.4524 | | | | 471,462 | | | | 6,343,563 | |

| Total | | 3,273,362 | | | $ | \- | | | | 3,228,854 | | | | 6,343,563 | |

| | | 12/09 | | 12/10 | | 12/11 | | 12/12 | | 12/13 | | 12/14 |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Everest Re Group, Ltd. | | 100.00 | | 101.40 | | 102.81 | | 137.04 | | 197.38 | | 219.96 |

| S&P 500 | | 100.00 | | 115.06 | | 117.49 | | 136.30 | | 180.44 | | 205.14 |

| S&P Property & Casualty Insurance | | 100.00 | | 108.94 | | 108.67 | | 130.52 | | 180.50 | | 208.92 |

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | 2013 | | | | | | | | 2012 | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | (a) | | | | (b) | | | | (c) | | | | (d) | | |

| January 1 - 31, 2013 | | | 343,981 | | | $ | 109.9112 | | | | 343,981 | | | | 3,962,541 | |

| February 1 - 28, 2013 | | | 692,480 | | | $ | 122.3512 | | | | 665,512 | | | | 3,297,029 | |

| March 1 - 31, 2013 | | | 943,004 | | | $ | 126.9520 | | | | 940,814 | | | | 2,356,215 | |

| April 1 - 30, 2013 | | | 88,100 | | | $ | 129.2677 | | | | 88,100 | | | | 2,268,115 | |

| May 1 - 31, 2013 | | | 1,500,308 | | | $ | 133.4148 | | | | 1,498,607 | | | | 5,769,508 | |

| June 1 - 30, 2013 | | | \- | | | $ | \- | | | | \- | | | | 5,769,508 | |

| July 1 - 31, 2013 | | | \- | | | $ | \- | | | | \- | | | | 5,769,508 | |

| August 1 - 31, 2013 | | | 417,835 | | | $ | 138.1231 | | | | 417,835 | | | | 5,351,673 | |

| September 1 - 30, 2013 | | | 311,849 | | | $ | 137.8958 | | | | 306,819 | | | | 5,044,854 | |

| October 1 - 31, 2013 | | | 37,168 | | | $ | 150.7867 | | | | 37,168 | | | | 5,007,686 | |

| November 1 - 30, 2013 | | | 53,791 | | | $ | 152.9850 | | | | 52,655 | | | | 4,955,031 | |

| December 1 - 31, 2013 | | | 426,382 | | | $ | 152.5836 | | | | 382,614 | | | | 4,572,417 | |

| Total | | | 4,814,898 | | | $ | \- | | | | 4,734,105 | | | | 4,572,417 | |

| | 12/08 | | 12/09 | | 12/10 | | 12/11 | | 12/12 | | 12/13 |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Everest Re Group, Ltd. | 100.00 | | 115.50 | | 117.12 | | 118.75 | | 158.29 | | 227.98 |

| S&P 500 | 100.00 | | 126.46 | | 145.51 | | 148.59 | | 172.37 | | 228.19 |

| S&P Property & Casualty Insurance | 100.00 | | 112.35 | | 122.39 | | 122.08 | | 146.63 | | 202.78 |

| --- | --- | --- | --- | --- | --- | --- |

| | | | | | | |

The following selected consolidated GAAP financial data of the Company as of and for the years ended December 31, [added: 2014,] 2013, 2012, [removed: 2011, 2010] [added: 2011] and [removed: 2009,] [added: 2010,] were derived from the audited consolidated financial statements of the Company.

| (Dollars in millions, except per share amounts) | | [removed: 2013] [added: 2014] | | | | [removed: 2012] [added: 2013] | | | | [removed: 2011] [added: 2012] | | | | [removed: 2010] [added: 2011] | | | | [removed: 2009] [added: 2010] | | |

| Gross written premiums | | $ | [removed: 5,218.6] [added: 5,749.0] | | | $ | [removed: 4,310.5] [added: 5,218.6] | | | $ | [removed: 4,286.2] [added: 4,310.5] | | | $ | [removed: 4,200.7] [added: 4,286.2] | | | $ | [removed: 4,129.0] [added: 4,200.7] | |

| Net written premiums | | | [removed: 5,004.8] [added: 5,256.9] | | | | [removed: 4,081.1] [added: 5,004.8] | | | | [removed: 4,108.9] [added: 4,081.1] | | | | [removed: 3,945.6] [added: 4,108.9] | | | | [removed: 3,929.8] [added: 3,945.6] | |

| Premiums earned | | | [removed: 4,753.5] [added: 5,169.1] | | | | [removed: 4,164.6] [added: 4,753.5] | | | | [removed: 4,101.3] [added: 4,164.6] | | | | [removed: 3,934.6] [added: 4,101.3] | | | | [removed: 3,894.1] [added: 3,934.6] | |

| Net investment income | | | [removed: 548.5] [added: 530.6] | | | | [removed: 600.2] [added: 548.5] | | | | [removed: 620.0] [added: 600.2] | | | | [removed: 653.5] [added: 620.0] | | | | [removed: 547.8] [added: 653.5] | |

| Net realized capital gains (losses) | | | [removed: 300.2] [added: 84.0] | | | | [removed: 164.4] [added: 300.2] | | | | [removed: 6.9] [added: 164.4] | | | | [removed: 101.9] [added: 6.9] | | | | [removed: (2.3] [added: 101.9] | [removed: )] |

| expenses (including catastrophes) | | | [removed: 2,800.3] [added: 2,906.5] | | | | [removed: 2,745.3] [added: 2,800.3] | | | | [removed: 3,726.2] [added: 2,745.3] | | | | [removed: 2,945.7] [added: 3,726.2] | | | | [removed: 2,374.1] [added: 2,945.7] | |

| Net catastrophe losses (1) | | | [removed: 177.7] [added: 56.0] | | | | [removed: 361.1] [added: 177.7] | | | | [removed: 1,237.6] [added: 361.1] | | | | [removed: 544.1] [added: 1,237.6] | | | | [removed: 65.2] [added: 544.1] | |

| Commission, brokerage, taxes and fees | | | [removed: 977.6] [added: 1,135.6] | | | | [removed: 952.7] [added: 977.6] | | | | [removed: 950.5] [added: 952.7] | | | | [removed: 931.9] [added: 950.5] | | | | [removed: 928.3] [added: 931.9] | |

| Other underwriting expenses | | | [removed: 237.1] [added: 240.4] | | | | [removed: 207.7] [added: 237.1] | | | | [removed: 182.4] [added: 207.7] | | | | [removed: 166.3] [added: 182.4] | | | | [removed: 167.2] [added: 166.3] | |

| Corporate expenses | | | [removed: 24.8] [added: 23.4] | | | | [removed: 24.0] [added: 24.8] | | | | [removed: 16.5] [added: 24.0] | | | | [removed: 14.9] [added: 16.5] | | | | [removed: 17.6] [added: 14.9] | |

| amortization expense | | | [removed: 46.1] [added: 38.5] | | | | [removed: 53.7] [added: 46.1] | | | | [removed: 52.3] [added: 53.7] | | | | [removed: 55.8] [added: 52.3] | | | | [removed: 72.1] [added: 55.8] | |

| Income (loss) before taxes | | | [added: 1,446.1 | | | |] 1,555.0 | | | | 939.5 | | | | (233.9 | ) | | | 591.2 | | [removed: | | 939.3 | |]

| Income tax expense (benefit) | | | [added: 187.7 | | | |] 289.7 | | | | 110.6 | | | | (153.5 | ) | | | (19.5 | ) | [removed: | | 132.3 | |]

| Net income (loss) (2) | | | [added: 1,258.5 | | | |] 1,265.3 | | | | 829.0 | | | | (80.5 | ) | | | 610.8 | | [removed: | | 807.0 | |]

| Net (income) loss attributable to noncontrolling interests | | | [removed: (5.9] [added: (59.3] | ) | | | [removed: \-] [added: (5.9] | [added: )] | | | \- | | | | \- | | | | \- | |

| Net income (loss) attributable to Everest Re Group | | | [added: 1,199.2 | | | |] 1,259.4 | | | | 829.0 | | | | (80.5 | ) | | | 610.8 | | [removed: | | 807.0 | |]

| Basic (3) | | $ | [removed: 25.67] [added: 26.16] | | | $ | [removed: 15.85] [added: 25.67] | | | $ | [removed: (1.49] [added: 15.85] | [removed: )] | | $ | [removed: 10.73] [added: (1.49] | [added: )] | | $ | [removed: 13.26] [added: 10.73] | |

| Diluted (4) | | $ | [removed: 25.44] [added: 25.91] | | | $ | [removed: 15.79] [added: 25.44] | | | $ | [removed: (1.49] [added: 15.79] | [removed: )] | | $ | [removed: 10.70] [added: (1.49] | [added: )] | | $ | [removed: 13.22] [added: 10.70] | |

| Dividends declared | | $ | [removed: 2.19] [added: 3.20] | | | $ | [removed: 1.92] [added: 2.19] | | | $ | 1.92 | | | $ | 1.92 | | | $ | 1.92 | |

| Loss ratio | | | [removed: 58.9] [added: 56.2] | % | | | [removed: 65.9] [added: 58.9] | % | | | [removed: 90.9] [added: 65.9] | % | | | [removed: 74.9] [added: 90.9] | % | | | [removed: 61.0] [added: 74.9] | % |

| Other underwriting expense ratio | | | [removed: 25.6] [added: 26.6] | % | | | [removed: 27.9] [added: 25.6] | % | | | [removed: 27.6] [added: 27.9] | % | | | [removed: 27.9] [added: 27.6] | % | | | [removed: 28.1] [added: 27.9] | % |

| Combined ratio (2) | | | [removed: 84.5] [added: 82.8] | % | | | [removed: 93.8] [added: 84.5] | % | | | [removed: 118.5] [added: 93.8] | % | | | [removed: 102.8] [added: 118.5] | % | | | [removed: 89.1] [added: 102.8] | % |

| Total investments and cash | | $ | [removed: 16,596.5] [added: 17,435.9] | | | $ | [removed: 16,576.2] [added: 16,596.5] | | | $ | [removed: 15,797.4] [added: 16,576.2] | | | $ | [removed: 15,365.0] [added: 15,797.4] | | | $ | [removed: 14,918.8] [added: 15,365.0] | |

| Total assets | | | [removed: 19,808.0] [added: 20,817.8] | | | | [removed: 19,777.9] [added: 19,808.0] | | | | [removed: 18,893.6] [added: 19,777.9] | | | | [removed: 18,384.2] [added: 18,893.6] | | | | [removed: 17,970.9] [added: 18,384.2] | |

| Loss and LAE reserves | | | [removed: 9,673.2] [added: 9,720.8] | | | | [removed: 10,069.1] [added: 9,673.2] | | | | [removed: 10,123.2] [added: 10,069.1] | | | | [removed: 9,340.2] [added: 10,123.2] | | | | [removed: 8,937.9] [added: 9,340.2] | |

| Total debt | | | [removed: 488.3] [added: 638.4] | | | | [removed: 818.2] [added: 488.3] | | | | [removed: 818.1] [added: 818.2] | | | | [removed: 868.1] [added: 818.1] | | | | [removed: 1,018.0] [added: 868.1] | |

| Total liabilities | | | [removed: 12,746.4] [added: 12,945.2] | | | | [removed: 13,044.4] [added: 12,746.4] | | | | [removed: 12,822.2] [added: 13,044.4] | | | | [removed: 12,100.7] [added: 12,822.2] | | | | [removed: 11,869.2] [added: 12,100.7] | |

| Redeemable noncontrolling interests - Mt. Logan Re | | | [removed: 93.4] [added: 421.6] | | | | [removed: \-] [added: 93.4] | | | | \- | | | | \- | | | | \- | |