filings.toolsEverest Group (EG) 10-K risk factor changes: FY2016 vs FY2015
The 2016-12-31 10-K against the 2015-12-31 one, compared heading by heading and sentence by sentence. One of these filings carries no fiscal year tag, so its year is the calendar year of the period end.
Item 1A50 rewritten13 added20 removed279 unchanged
All filing items1,340 rewritten1,306 added743 removed2,955 unchanged
Summary
counted, not written
- Item 1A headings could not be compared: only 0 carried over between the two years, which usually means one filing was read wrongly, so none is reported as new or removed.
- Sentence by sentence, 1,306 added, 743 removed, 1,340 rewritten and 2,955 unchanged across 12 items that differ.
Sentences by item
21 items, with every count and a link to each item that changed
| Item | Added | Removed | Rewritten | Unchanged |
|---|---|---|---|---|
| Item 1A. RISK FACTORS | 13 | 20 | 50 | 279 |
| Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION | 285 | 243 | 293 | 695 |
| Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 0 | 0 | 0 | 1 |
| Item 1. BUSINESS | 85 | 200 | 181 | 518 |
| Item 3. LEGAL PROCEEDINGS | 0 | 0 | 0 | 11 |
| Cover and table of contents | 1 | 2 | 11 | 57 |
| Item 4. Mine Safety Disclosures 39 | 0 | 0 | 7 | 11 |
| Item 9B. Other Information 79 | 0 | 0 | 7 | 16 |
| Item 1B. UNRESOLVED STAFF COMMENTS | 0 | 0 | 0 | 1 |
| Item 2. PROPERTIES | 0 | 0 | 1 | 3 |
| Item 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES | 22 | 22 | 23 | 19 |
| Item 6. SELECTED FINANCIAL DATA | 14 | 17 | 20 | 22 |
| Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA | 0 | 0 | 0 | 1 |
| Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE | 0 | 0 | 0 | 1 |
| Item 9A. CONTROLS AND PROCEDURES | 0 | 0 | 3 | 16 |
| Item 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE | 0 | 0 | 1 | 0 |
| Item 11. EXECUTIVE COMPENSATION | 0 | 0 | 0 | 1 |
| Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS | 0 | 0 | 0 | 1 |
| Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE | 0 | 0 | 0 | 1 |
| Item 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES | 0 | 0 | 0 | 2 |
| Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES | 886 | 239 | 743 | 1,299 |
Underlined words on a shaded ground are new in FY2016; struck-through words were in FY2015. Sentences that are wholly new or wholly gone are labelled rather than marked.
Item 1A. RISK FACTORS
50 rewritten, 13 added, 20 removed, 279 unchanged
[added: Although] financial markets have significantly improved since 2008, they could deteriorate in the future.
There could also be disruption in individual market sectors, such as [removed: is occurring] [added: occurred] in the energy [removed: sector.][added: sector in recent years.]
| Calendar year: | [removed: |] Pre-tax catastrophe losses | | | |
| 2012 | | | 410.0 | | [removed: |]
[removed: By way of illustration,] [added: However,] during the past five calendar years, the reserve re-estimation process resulted in [removed: a decrease] [added: an increase] to our pre-tax net income [removed: in one of the] [added: all] years:
| Calendar year: | [removed: |] Effect on pre-tax net income | | | | |
| (Dollars in millions) | | | | | [removed: | |]
| 2015 | | [removed: $] | [removed: 68.6] [added: 65.1] | | increase | [removed: |]
| 2014 | | | [removed: 39.9] [added: 39.7] | | increase | [removed: |]
| 2013 | | | 18.2 | | increase | [removed: |]
| 2012 | | | 3.7 | | increase | [removed: |]
At year-end [removed: 2015, 4.4%] [added: 2016, 4.3%] of our gross reserves were comprised of A&E reserves.
| | [added: 2016 |] 2015 | 2014 | 2013 | 2012 | [removed: 2011 |]
| Percentage of ceded written premiums to gross written premiums | [removed: 8.5%] [added: 12.6%] | [removed: 8.6%] [added: 12.0%] | [removed: 4.1%] [added: 10.9%] | [removed: 5.3%] [added: 4.5%] | [removed: 4.1%] [added: 5.3%] |
The worldwide net premium written by the Top 40 global reinsurance groups, for both life and non-life business, was estimated to be [removed: $195] [added: $194] billion in [removed: 2014] [added: 2015] according to data compiled by Standard & Poor's.
The leaders in this market are [removed: Swiss Re,] Munich Re, [removed: Berkshire Hathaway Inc.,] [added: Swiss Re,] Hannover Rueckversicherung AG, [added: Berkshire Hathaway Inc.,] SCOR SE and syndicates at Lloyd's of London.
Taranto (age [removed: 66)] [added: 67)] and existing key executive officers and to attract and retain additional qualified personnel in the future.
Addesso (age [removed: 62),] [added: 63),] Executive Vice President and Chief Financial Officer, Craig Howie (age [removed: 52),] [added: 53),] Executive Vice President and Chief [removed: Underwriting Officer,] [added: Executive Officer Reinsurance Division,] John P.
Doucette (age [removed: 50) and] [added: 51),] Executive Vice President, General Counsel, Chief Compliance Officer and Secretary, Sanjoy Mukherjee (age [removed: 49).][added: 50) and President, North America Insurance Division, Jonathan Zaffino (age 44).]
We currently have an agreement with Mr. Taranto to serve as a non-employee Director and Chairman of the Board through December 31, [removed: 2016,] [added: 2019,] subject to Mr. Taranto's annual election to the Board by its shareholders during its Annual General Meetings that occur over the term of the agreement.
We have employment contracts with Mr. Addesso, Mr. [added: Howie, Mr.] Doucette and Mr. Mukherjee, which have been filed with the SEC and provide for terms of employment ending on December 31, 2018 for Mr. [removed: Addesso and September] [added: Addesso, April] 1, [removed: 2016] [added: 2019] for Mr. [added: Howie, June 1, 2019 for Mr.] Doucette and [added: January 1, 2020 for] Mr. Mukherjee.
Currently, all our Bermuda-based professional employees who require work permits have been granted permits by the Bermuda government that expire at various times between [removed: August 2016 and] February [removed: 2017.][added: 2017 and September 2019.]
This includes [removed: Mark de Saram,] [added: Sanjoy Mukherjee,] the chief executive officer of our Bermuda reinsurance operation.
Our actively managed equity security portfolios are fair valued and any changes in fair value are reflected as net realized [added: capital gains or losses.]
| (Dollars in millions) | | December 31, [removed: 2015] [added: 2016] | | | | % of Total | | |
| Non-agency residential | | | [removed: 0.9] [added: 0.6] | | | | 0.0 | % |
| Other asset-backed | | | [removed: 467.2] [added: 488.6] | | | | [removed: 2.7] [added: 2.8] | % |
| Total asset-backed | | | [removed: 3,054.9] [added: 3,201.6] | | | | [removed: 17.3] [added: 18.3] | % |
| Other fixed income | | | [removed: 10,302.4] [added: 10,905.8] | | | | [removed: 58.3] [added: 62.4] | % |
| Total fixed income, at market value | | | [removed: 13,357.3] [added: 14,107.4] | | | | [removed: 75.6] [added: 80.7] | % |
| Fixed maturities, at fair value | | | [removed: 2.1] [added: \-] | | | | 0.0 | % |
| Equity securities, at market value | | | [removed: 108.9] [added: 119.1] | | | | [removed: 0.6] [added: 0.7] | % |
| Equity securities, at fair value | | | [removed: 1,337.7] [added: 1,010.1] | | | | [removed: 7.6] [added: 5.8] | % |
| Other invested assets | | | [removed: 787.0] [added: 1,333.1] | | | | [removed: 4.5] [added: 7.6] | % |
| Cash and short-term investments | | | [removed: 2,079.2] [added: 913.4] | | | | [removed: 11.7] [added: 5.2] | % |
| Total investments and cash | | $ | [removed: 17,672.2] [added: 17,483.1] | | | | 100.0 | % |
In [removed: 2015,] [added: 2016,] we wrote approximately [removed: 27.2%] [added: 25.1%] of our coverages in non-U.S. currencies; as of December 31, [removed: 2015,] [added: 2016,] we maintained approximately [removed: 12.1%] [added: 12.4%] of our investment portfolio in investments denominated in non-U.S. currencies.
During [removed: 2015, 2014] [added: 2016, 2015] and [removed: 2013,] [added: 2014,] the impact on our quarterly pre-tax net income from exchange rate fluctuations ranged from a loss of [removed: $13.0] [added: $27.2] million to a gain of $47.1 million.
As a result of the previous dislocation of the financial markets, Congress and the [added: outgoing] Presidential administration in the United States [removed: are implementing] [added: implemented] changes in the way the financial services industry is regulated.
For example, the United States Department of Treasury [removed: has recently] established the Federal Insurance Office with the authority to monitor all aspects of the insurance sector, monitor the extent to which traditionally underserved communities and consumers have access to affordable non-health insurance products, to represent the United States on prudential aspects of international insurance matters, to assist with administration of the Terrorism Risk Insurance Program and to advise on important national and international insurance matters.
| --- | --- | --- | --- | --- |
| 2016 | | $ | 301.2 | |
| 2015 | | | 53.8 | |
| 2014 | | | 56.3 | |
| 2013 | | | 194.0 | |
| 2016 | | $ | 295.3 | | increase |
| Commercial | | $ | 306.9 | | | | 1.7 | % |
| Agency residential | | | 2,405.5 | | | | 13.8 | % |
In the case of an amalgamation, in which two or more companies join together and
of fiduciary duty, corporate waste and actions not taken in accordance with applicable law.
U.S. insurers from affiliates operating in some foreign jurisdictions, including Bermuda.
It is possible that future legislation could be enacted that seeks to mitigate these perceived tax disadvantages between U.S. and foreign based insurers.
This would impact our net income and effective tax rate.
Although
| 2015 | | $ | 66.3 | | |
| 2014 | | | 62.2 | | |
| 2013 | | | 195.0 | | |
| 2011 | | | 1,300.4 | | |
| --- | --- | --- | --- | --- | --- | --- |
| 2011 | | | 3.7 | | decrease | |
See ITEM 1, "Business - Changes in Historical Reserves," which provides a more detailed chart showing the effect of reserve re-estimates on calendar year operating results for the past ten years.
The Company has an employment contract with Mr. de Saram, which was filed with the SEC and provides for term of employment ending on June 30, 2016.
However, Mr. de Saram recently announced his retirement effective April 4, 2016.
Mr. Mukherjee has been named as Mr. de Saram's successor upon retirement.
Mr. Mukherjee has applied for a work permit but we are currently awaiting approval of the work permit by the Bermuda government.
In the event his work permit is not approved, it could adversely affect our ability to conduct our business in Bermuda until we were able to replace him with an individual in Bermuda who did not require a work permit or who was granted the permit.
capital gains or losses.
| Commercial | | $ | 266.3 | | | | 1.5 | % |
| Agency residential | | | 2,320.5 | | | | 13.1 | % |
derived an improper personal benefit.
It is possible that future legislation that would be disadvantageous to our Bermuda insurance subsidiaries could be enacted.
This would reduce our net income.
However, if the Internal Revenue Service ("IRS") were to
An excerpt. Shown here: 40 of 50 rewritten, all 13 added and all 20 removed. The counts are complete. For every sentence, read Item 1A. RISK FACTORS in the FY2016 filing and the FY2015 filing.
Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION
293 rewritten, 285 added, 243 removed, 695 unchanged
As such, financial results tend to fluctuate with periods of constrained availability, [removed: high] [added: higher] rates and [removed: strong] [added: stronger] profits followed by periods of abundant capacity, [removed: low] [added: lower] rates and constrained profitability.
Although there [removed: have been other] [added: were] flooding and wind storm events and earthquakes in [removed: other] parts of the [removed: world ,] [added: world,] the overall 2013, 2014 and 2015 catastrophe losses for the industry were considerably lower than average.
[removed: During] [added: Commencing in] 2015, we initiated a strategic build out of our insurance platform through the investment in key leadership hires which in turn has brought significant underwriting talent and stronger direction in achieving our insurance program strategic goals of increased premium volume and improved underwriting results.
[removed: As part of this initiative, we received approval from Lloyd's of London to launch] a new [removed: syndicate,] [added: syndicate in 2016] which [removed: will provide] [added: provided] us access to additional international business and new product opportunities to further diversify and broaden our insurance [removed: portfolio in 2016.][added: portfolio.]
| (Dollars in millions) | | [removed: 2015] [added: 2016] | | | | [removed: 2014] [added: 2015] | | | | [removed: 2013] [added: 2014] | | | | | [removed: 2015/2014] [added: 2016/2015] | | | | [removed: 2014/2013] [added: 2015/2014] | |
| Net investment income | | | 473.8 | | | | [removed: 530.6] [added: (0.4] | [added: )] | | | [removed: 548.5] [added: 473.5] | | | | [removed: \-10.7] [added: 530.6] | [removed: %] | | | [removed: \-3.3] [added: (0.1] | [removed: %] [added: )] | [added: | | 530.5 | |]
| Net realized capital gains (losses) | | | [removed: (184.1] [added: (7.2] | ) | | | [removed: 84.0] [added: (184.1] | [added: )] | | | [removed: 300.2] [added: 84.0] | | | [removed: NM] | [added: \-96.1] | [added: %] | | [added: NM] | [removed: \-72.0] | [removed: %] |
| Net derivative gain (loss) | | | [removed: 6.3] [added: 18.6] | | | | [removed: (11.6] [added: 6.3] | [removed: )] | | | [removed: 44.0] [added: (11.6] | [added: )] | | | [removed: \-154.5] [added: 195.2] | % | | | [removed: \-126.3] [added: \-154.5] | % |
| Other income (expense) | | | 60.4 | | | | [removed: 18.4] [added: 27.8] | | | | [removed: (5.5] [added: 88.3] | [removed: )] | | | [removed: 227.8] [added: 18.4] | [removed: %] | | [removed: NM] | [added: 13.9] | | [added: | | 32.3 | |]
| Incurred losses and loss adjustment expenses | | | 3,101.9 | | | | [removed: 2,906.5] [added: (37.2] | [added: )] | | | [removed: 2,800.3] [added: 3,064.7] | | | | [removed: 6.7] [added: 2,906.5] | [removed: %] | | | [removed: 3.8] [added: (30.6] | [removed: %] [added: )] | [added: | | 2,875.9 | |]
| Commission, brokerage, taxes and fees | | | 1,202.0 | | | | [removed: 1,135.6] [added: (18.4] | [added: )] | | | [removed: 977.6] [added: 1,183.6] | | | | [removed: 5.9] [added: 1,135.6] | [removed: %] | | | [removed: 16.2] [added: (14.4] | [removed: %] [added: )] | [added: | | 1,121.1 | |]
| Other underwriting expenses | | | 266.0 | | | | [removed: 240.4] [added: (8.9] | [added: )] | | | [removed: 237.1] [added: 257.1] | | | | [removed: 10.6] [added: 240.4] | [removed: %] | | | [removed: 1.4] [added: (7.3] | [removed: %] [added: )] | [added: | | 233.1 | |]
| Corporate expenses | | | [removed: 23.3] [added: 27.2] | | | | [removed: 23.4] [added: 23.3] | | | | [removed: 24.8] [added: 23.4] | | | | [removed: \-0.7] [added: 17.1] | % | | | [removed: \-5.6] [added: \-0.7] | % |
| Interest, fees and bond issue cost amortization expense | | | 36.2 | | | | [removed: 38.5] [added: 36.2] | | | | [removed: 46.1] [added: 38.5] | | | | [removed: \-6.1] [added: 0.1] | % | | | [removed: \-16.4] [added: \-6.1] | % |
| Total claims and expenses | | | 4,629.4 | | | | [removed: 4,344.5] [added: (64.5] | [added: )] | | | [removed: 4,085.9] [added: 4,564.9] | | | | [removed: 6.6] [added: 4,344.5] | [removed: %] | | | [removed: 6.3] [added: (52.3] | [removed: %] [added: )] | [added: | | 4,292.1 | |]
| INCOME (LOSS) BEFORE TAXES | | | 1,208.5 | | | | [removed: 1,446.1] [added: (96.6] | [added: )] | | | [removed: 1,555.0] [added: 1,111.9] | | | | [removed: \-16.4] [added: 1,446.1] | [removed: %] | | | [removed: \-7.0] [added: (59.3] | [removed: %] [added: )] | [added: | | 1,386.8 | |]
| Income tax expense (benefit) | | | [removed: 134.0] [added: 103.5] | | | | [removed: 187.7] [added: 134.0] | | | | [removed: 289.7] [added: 187.7] | | | | [removed: \-28.6] [added: \-22.8] | % | | | [removed: \-35.2] [added: \-28.6] | % |
| NET INCOME (LOSS) | | [removed: $] | 1,074.5 | | | [removed: $] | [removed: 1,258.5] [added: (96.6] | [added: )] | | [removed: $] | [removed: 1,265.3] [added: 977.9] | | | | [removed: \-14.6] [added: 1,258.5] | [removed: %] | | | [removed: \-0.5] [added: (59.3] | [removed: %] [added: )] | [added: | | 1,199.2 | |]
| Net [removed: (income) loss] [added: income (loss)] attributable to noncontrolling interests | | | (96.6 | ) | | | [removed: (59.3] [added: 96.6] | [removed: )] | | | [removed: (5.9] [added: \-] | [added: | | | (59.3 |] ) | | | [removed: 62.9] [added: 59.3] | [removed: %] | | [removed: NM] | [added: \-] | |
| NET INCOME (LOSS) ATTRIBUTABLE TO EVEREST RE GROUP | | [removed: $] | 977.9 | | | [removed: $] | [removed: 1,199.2] [added: (977.9] | [added: )] | | [removed: $] | [removed: 1,259.4] [added: \-] | | | | [removed: \-18.5] [added: 1,199.2] | [removed: %] | | | [removed: \-4.8] [added: (1,199.2] | [removed: %] [added: )] | [added: | | \- | |]
| Other underwriting expense ratio | | | [removed: 4.9] [added: 4.4] | % | | | [removed: 4.6] [added: 4.4] | % | | | [removed: 5.0] [added: 4.9] | % | | | [removed: 0.3] | | | | [removed: (0.4] [added: \-] | [added: | | | | | | | (0.5 |] ) |
| (Dollars in millions, except per share amounts) | | | [removed: 2015] [added: 2016] | | | | [removed: 2014] [added: 2015] | | | | [removed: 2013] [added: 2014] | | | | [removed: 2015/2014] [added: 2016/2015] | | | | [removed: 2014/2013] [added: 2015/2014] | |
| Total investments and cash | | [removed: $] | 17,672.2 | | | [removed: $] | [removed: 17,435.9 | | | $ | 16,596.5 | | | | 1.4] [added: (995.8] | [removed: %] [added: )] | | | [removed: 5.1] [added: 16,676.4] | [removed: %] |
| Loss and loss adjustment expense reserves | | | [removed: 9,951.8] [added: 10,312.3] | | | | [removed: 9,720.8] [added: 9,951.8] | | | | [removed: 9,673.2] [added: 9,720.8] | | | | [removed: 2.4] [added: 3.6] | % | | | [removed: 0.5] [added: 2.4] | % |
| Redeemable noncontrolling interests - Mt. Logan Re | | | 756.9 | | | | [removed: 421.6 | | | | 93.4 | | | | 79.5] [added: (756.9] | [removed: %] [added: )] | | [removed: NM] | [added: \-] | |
| Shareholders' equity | | | [removed: 7,608.6] [added: 8,075.4] | | | | [removed: 7,451.1] [added: 7,608.6] | | | | [removed: 6,968.3] [added: 7,451.1] | | | | [removed: 2.1] [added: 6.1] | % | | | [removed: 6.9] [added: 2.1] | % |
| Book value per share | | | [removed: 178.21] [added: 197.45] | | | | [removed: 166.75] [added: 178.21] | | | | [removed: 146.57] [added: 166.75] | | | | [removed: 6.9] [added: 10.8] | % | | | [removed: 13.8] [added: 6.9] | % |
Gross written premiums increased by 2.2% to [removed: $5,876.3] [added: $5,891.7] million in 2015, compared to [removed: $5,749.0] [added: $5,762.9] million in 2014, reflecting a $313.9 million, or 25.8%, increase in our insurance [removed: business and] [added: business, partially offset by] a [removed: $95.6] [added: $185.1] million, or [removed: 69.1%, increase from the Mt.][added: 4.1%, decrease in our reinsurance business.]
Net written premiums increased by [removed: 2.3%] [added: 1.0%] to [removed: $5,378.3] [added: $5,182.3] million in 2015 compared to [removed: $5,256.9] [added: $5,132.4] million in 2014.
Premiums earned increased by [removed: 6.0%] [added: 4.9%] to [removed: $5,481.5] [added: $5,292.8] million in 2015, compared to [removed: $5,169.1] [added: $5,043.7] million in 2014.
The [removed: increase] [added: decline] in reinsurance premiums was mainly due to [removed: new business:] [added: a decrease in treaty property business, a decline in international premiums related to] quota share [removed: contracts] [added: agreements] and [removed: contracts with catastrophe exposed risks, partially offset by] a negative impact of [removed: $52.1] [added: $74.0] million from the [added: year over year] movement in foreign exchange rates.
The [removed: variance] [added: difference] between the [removed: increase] [added: change] in gross written premiums compared to the [removed: increase] [added: change] in net written premiums is primarily due to [removed: a higher] [added: varying] utilization of reinsurance related to the [removed: new] quota share contracts.
Net investment income decreased by 10.7% to [removed: $473.8] [added: $473.5] million in 2015 compared with investment income of [removed: $530.6] [added: $530.5] million in 2014.
Net pre-tax investment income, as a percentage of average invested assets, was [removed: 2.8%] [added: 2.9%] in 2015 compared to [removed: 3.2%] [added: 3.3%] in 2014.
Net investment income decreased by [removed: 3.3%] [added: 0.1%] to [removed: $530.6] [added: $473.1] million in [removed: 2014] [added: 2016,] compared with [removed: net] investment income of [removed: $548.5] [added: $473.5] million in [removed: 2013.][added: 2015.]
Net pre-tax investment income, as a percentage of average invested assets, was [removed: 3.2%] [added: 2.8%] in [removed: 2014] [added: 2016,] compared to [removed: 3.5%] [added: 2.9%] in [removed: 2013.][added: 2015.]
The [added: slight] decline in income and yield [removed: in 2014 compared to 2013] was primarily the result of lower reinvestment rates for the fixed income portfolios and [removed: a decrease in] [added: lower dividends from equity securities, partially offset by higher income from] our limited [removed: partnership income.][added: partnerships.]
Net realized capital losses were [added: $7.2 million and] $184.1 million in [removed: 2015] [added: 2016] and [added: 2015, respectively, and] net realized capital gains were $84.0 million [removed: and $300.2 million] in [removed: 2014 and 2013, respectively.][added: 2014.]
The [added: net realized capital losses of] $184.1 million [removed: was] [added: in 2015 were] comprised of $102.2 million of other-than-temporary impairments, $45.6 million of net losses from fair value re-measurements and $36.3 million of net realized capital losses from sales on our fixed maturity and equity securities.
The net realized capital gains of $84.0 million in 2014 [removed: was] [added: were] comprised of $121.7 million of net gains from fair value re-measurements and $1.9 million of net realized capital gains from sales on our fixed maturity and equity securities, which were partially offset by $39.5 million of other-than-temporary impairments.
During 2016, there was an increase in catastrophes: the Fort McMurray Canadian wildfire, Hurricane Matthew which affected a large area of the Caribbean and southeastern United States, storms and an earthquake in Ecuador.
There are industry predictions that the catastrophe losses for 2016 may exceed the inflation-adjusted ten year average catastrophe amounts.
While the future impact on market conditions from these catastrophes cannot be determined at this time, it is unlikely to have a significant impact on the overall markets, but may impact loss affected areas.
As part of this initiative, we received approval from Lloyd's of London to launch
| Gross written premiums | | $ | 6,033.9 | | | $ | 5,891.7 | | | $ | 5,762.9 | | | | 2.4 | % | | | 2.2 | % |
| Net written premiums | | | 5,270.9 | | | | 5,182.3 | | | | 5,132.4 | | | | 1.7 | % | | | 1.0 | % |
| Premiums earned | | $ | 5,320.5 | | | $ | 5,292.8 | | | $ | 5,043.7 | | | | 0.5 | % | | | 4.9 | % |
| Net investment income | | | 473.1 | | | | 473.5 | | | | 530.5 | | | | \-0.1 | % | | | \-10.7 | % |
| Other income (expense) | | | (10.6 | ) | | | 88.3 | | | | 32.3 | | | | \-112.0 | % | | | 173.2 | % |
| Total revenues | | | 5,794.3 | | | | 5,676.8 | | | | 5,678.9 | | | | 2.1 | % | | | 0.0 | % |
| Incurred losses and loss adjustment expenses | | | 3,139.6 | | | | 3,064.7 | | | | 2,875.9 | | | | 2.4 | % | | | 6.6 | % |
| Commission, brokerage, taxes and fees | | | 1,188.7 | | | | 1,183.6 | | | | 1,121.1 | | | | 0.4 | % | | | 5.6 | % |
| Other underwriting expenses | | | 302.7 | | | | 257.1 | | | | 233.1 | | | | 17.8 | % | | | 10.3 | % |
| Total claims and expenses | | | 4,694.5 | | | | 4,564.9 | | | | 4,292.1 | | | | 2.8 | % | | | 6.4 | % |
| INCOME (LOSS) BEFORE TAXES | | | 1,099.8 | | | | 1,111.9 | | | | 1,386.8 | | | | \-1.1 | % | | | \-19.8 | % |
| NET INCOME (LOSS) | | $ | 996.3 | | | $ | 977.9 | | | $ | 1,199.2 | | | | 1.9 | % | | | \-18.5 | % |
| Loss ratio | | | 59.0 | % | | | 57.9 | % | | | 57.0 | % | | | 1.1 | | | | 0.9 | |
| Commission and brokerage ratio | | | 22.3 | % | | | 22.4 | % | | | 22.2 | % | | | (0.1 | ) | | | 0.2 | |
| Other underwriting expense ratio | | | 5.7 | % | | | 4.8 | % | | | 4.7 | % | | | 0.9 | | | | 0.1 | |
| Combined ratio | | | 87.0 | % | | | 85.1 | % | | | 83.9 | % | | | 1.9 | | | | 1.2 | |
| Total investments and cash | | $ | 17,483.1 | | | $ | 16,676.4 | | | $ | 16,880.8 | | | | 4.8 | % | | | \-1.2 | % |
| Total assets | | | 21,321.5 | | | | 20,545.4 | | | | 20,339.9 | | | | 3.8 | % | | | 1.0 | % |
| Total debt | | | 633.2 | | | | 633.0 | | | | 632.7 | | | | 0.0 | % | | | 0.0 | % |
| Total liabilities | | | 13,246.1 | | | | 12,936.8 | | | | 12,888.8 | | | | 2.4 | % | | | 0.4 | % |
Gross written premiums increased by 2.4% to $6,033.9 million in 2016, compared to $5,891.7 million in 2015, reflecting a $254.7 million, or 16.6%, increase in our insurance business, partially offset by a $112.6 million, or 2.6%, decrease in our reinsurance business.
Net written premiums increased by 1.7% to $5,270.9 million in 2016, compared to $5,182.3 million in 2015.
The changes are consistent with the changes in gross written premiums.
Premiums earned increased by 0.5% to $5,320.5 million in 2016, compared to $5,292.8 million in 2015.
The rise in insurance premiums was primarily due to increases in most lines of business, as we have focused on expanding the insurance operations.
The foreign exchange losses in 2016 were primarily generated from our United Kingdom operations as a result of the decline in the Great British Pound (Sterling) in relation to other major currencies resulting from the United Kingdom vote to leave the European Union.
| 2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Attritional | | $ | 3,047.1 | | | | 57.2 | % | | | $ | (208.7 | ) | | | \-3.9 | % | | | $ | 2,838.4 | | | | 53.3 | % | |
| Catastrophes | | | 387.9 | | | | 7.3 | % | | | | (86.6 | ) | | | \-1.6 | % | | | | 301.2 | | | | 5.7 | % | |
| Total segment | | $ | 3,435.0 | | | | 64.5 | % | | | $ | (295.3 | ) | | | \-5.5 | % | | | $ | 3,139.6 | | | | 59.0 | % | |
| Attritional | | $ | 3,042.5 | | | | 57.5 | % | | | $ | (31.6 | ) | | | \-0.6 | % | | | $ | 3,010.9 | | | | 56.9 | % | |
| Catastrophes | | | 87.2 | | | | 1.6 | % | | | | (33.4 | ) | | | \-0.6 | % | | | | 53.8 | | | | 1.0 | % | |
| Total segment | | $ | 3,129.7 | | | | 59.1 | % | | | $ | (65.0 | ) | | | \-1.2 | % | | | $ | 3,064.7 | | | | 57.9 | % | |
| Attritional | | $ | 2,831.7 | | | | 56.1 | % | | | $ | (12.1 | ) | | | \-0.3 | % | | | $ | 2,819.6 | | | | 55.8 | % | |
| Total segment | | $ | 2,915.6 | | | | 57.8 | % | | | $ | (39.7 | ) | | | \-0.8 | % | | | $ | 2,875.9 | | | | 57.0 | % | |
| Attritional | | $ | 4.6 | | | | (0.3 | ) | pts | | $ | (177.1 | ) | | | (3.3 | ) | pts | | $ | (172.5 | ) | | | (3.6 | ) | pts |
During the second and third quarters of 2013, Canada experienced historic flooding in Alberta and Toronto, which resulted in higher catastrophe rates in these areas during 2014.
This lower level of losses, combined with increased competition has resulted in downward pressure on insurance and reinsurance rates in certain geographical areas.
These lower catastrophe historic losses are placing downward pressure on worldwide regional catastrophe markets.
| Gross written premiums | | $ | 5,876.3 | | | $ | 5,749.0 | | | $ | 5,218.6 | | | | 2.2 | % | | | 10.2 | % |
| Net written premiums | | | 5,378.3 | | | | 5,256.9 | | | | 5,004.8 | | | | 2.3 | % | | | 5.0 | % |
| Premiums earned | | $ | 5,481.5 | | | $ | 5,169.1 | | | $ | 4,753.5 | | | | 6.0 | % | | | 8.7 | % |
| Total revenues | | | 5,837.9 | | | | 5,790.6 | | | | 5,640.8 | | | | 0.8 | % | | | 2.7 | % |
| Loss ratio | | | 56.6 | % | | | 56.2 | % | | | 58.9 | % | | | 0.4 | | | | (2.7 | ) |
| Commission and brokerage ratio | | | 21.9 | % | | | 22.0 | % | | | 20.6 | % | | | (0.1 | ) | | | 1.4 | |
| Combined ratio | | | 83.4 | % | | | 82.8 | % | | | 84.5 | % | | | 0.6 | | | | (1.7 | ) |
| Total assets | | | 21,426.2 | | | | 20,817.8 | | | | 19,808.0 | | | | 2.9 | % | | | 5.1 | % |
| Total debt | | | 638.4 | | | | 638.4 | | | | 488.3 | | | | 0.0 | % | | | 30.7 | % |
| Total liabilities | | | 13,060.7 | | | | 12,945.2 | | | | 12,746.4 | | | | 0.9 | % | | | 1.6 | % |
Premiums.
Logan Re segment, partially offset by a $282.2 million, or 6.4%, decrease in our reinsurance business.
The increase in the Mt.
Logan Re premiums is comparable to the increase in capital from non-voting redeemable preferred shares.
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 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.
Premiums earned increased by 8.7% to $5,169.1 million in 2014, compared to $4,753.5 million in 2013.
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | Current | | | | Ratio %/ | | | | | Prior | | | | Ratio %/ | | | | | Total | | | | Ratio %/ | | | |
| (Dollars in millions) | | Year | | | | Pt Change | | | | | Years | | | | Pt Change | | | | | Incurred | | | | Pt Change | | | |
| 2015 | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Attritional (a) | | $ | 3,071.2 | | | | 56.0 | % | | | $ | (35.5 | ) | | | \-0.6 | % | | | $ | 3,035.6 | | | | 55.4 | % | |
| Catastrophes | | | 99.3 | | | | 1.8 | % | | | | (33.0 | ) | | | \-0.6 | % | | | | 66.3 | | | | 1.2 | % | |
| Total | | $ | 3,170.5 | | | | 57.8 | % | | | $ | (68.6 | ) | | | \-1.2 | % | | | $ | 3,101.9 | | | | 56.6 | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2014 | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Attritional (a) | | $ | 2,856.4 | | | | 55.2 | % | | | $ | (12.1 | ) | | | \-0.2 | % | | | $ | 2,844.3 | | | | 55.0 | % | |
| Total | | $ | 2,946.4 | | | | 56.9 | % | | | $ | (39.9 | ) | | | \-0.7 | % | | | $ | 2,906.5 | | | | 56.2 | % | |
| 2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Attritional (a) | | $ | 2,623.5 | | | | 55.2 | % | | | $ | (18.2 | ) | | | \-0.4 | % | | | $ | 2,605.3 | | | | 54.8 | % | |
| Catastrophes | | | 195.0 | | | | 4.1 | % | | | | \- | | | | 0.0 | % | | | | 195.0 | | | | 4.1 | % | |
| Total | | $ | 2,818.5 | | | | 59.3 | % | | | $ | (18.2 | ) | | | \-0.4 | % | | | $ | 2,800.3 | | | | 58.9 | % | |
| Attritional | | $ | 214.8 | | | | 0.8 | | pts | | $ | (23.4 | ) | | | (0.4 | ) | pts | | $ | 191.3 | | | | 0.4 | | pts |
| Catastrophes | | | 9.3 | | | | 0.1 | | pts | | | (5.2 | ) | | | (0.1 | ) | pts | | | 4.1 | | | | \- | | pts |
An excerpt. Shown here: 40 of 293 rewritten, 40 of 285 added and 40 of 243 removed. The counts are complete. For every sentence, read Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION in the FY2016 filing and the FY2015 filing.
Item 1. BUSINESS
181 rewritten, 85 added, 200 removed, 518 unchanged
The Company had gross written premiums, in [removed: 2015,] [added: 2016,] of [removed: $5.9] [added: $6.0] billion with approximately [removed: 74%] [added: 70%] representing reinsurance and [removed: 26%] [added: 30%] representing insurance.
Shareholders' equity at December 31, [removed: 2015] [added: 2016] was [removed: $7.6] [added: $8.1] billion.
The Company underwrites insurance principally through [removed: general agent relationships, brokers and] [added: brokers,] surplus lines [removed: brokers.][added: brokers and general agent relationships.]
[added: Group's active operating subsidiaries are each rated A+ ("Superior") by A.M. Best] Company ("A.M. Best"), a leading provider of insurer ratings that assigns financial strength ratings to insurance companies based on their ability to meet their obligations to policyholders.
| · | 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: 2015,] [added: 2016,] Bermuda Re had shareholder's equity of [removed: $2.9] [added: $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: 2015,] [added: 2016,] 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. In 2015, Everest International issued additional capital as part of a capital restructuring initiative within the Company to support a planned increase in international business production, which includes supporting Group's new Lloyd's of London Syndicate corporate member. At December 31, [removed: 2015,] [added: 2016,] Everest International had shareholder's equity of [removed: $2.4] [added: $2.8] billion. |
| · | 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: 2015,] [added: 2016,] Everest Re had statutory surplus of [removed: $3.2] [added: $3.6] billion. |
| · | Everest International Assurance, Ltd. ("Everest Assurance"), a Bermuda company and a direct subsidiary of Holdings is registered in Bermuda as a Class 3A general business insurer and as a Class C long-term insurer. Everest Assurance has made a one-time election under section 953(d) of the U.S. Internal Revenue Code to be a U.S. income tax paying "Controlled Foreign Corporation." By making this election, Everest Assurance [removed: will be] [added: is] authorized to write life reinsurance and casualty reinsurance in both Bermuda and the U.S. |
| · | Mt. McKinley Insurance Company ("Mt. McKinley"), a Delaware insurance company and a direct subsidiary of Holdings, was acquired by Holdings in September 2000 from The Prudential. In 1985, Mt. McKinley ceased writing new and renewal insurance and commenced a run-off operation to service claims arising from its previously written business. Effective September 19, 2000, Mt. McKinley and Bermuda Re entered into a loss portfolio transfer reinsurance agreement, whereby Mt. McKinley transferred, for arm's-length consideration, all of its net insurance exposures and reserves to Bermuda Re. [added: Effective July 13, 2015, the Company sold all of the outstanding shares of capital stock Mt. McKinley to Clearwater Insurance Company. The operating results of Mt. McKinley through July 13, 2015 are included within the Company's financial statements.] |
Effective July 13, 2015, the Company sold all of the outstanding shares of capital stock [added: of a wholly-owned subsidiary entity,] Mt.
[removed: McKinley] [added: McKinley"),] to Clearwater Insurance Company.
McKinley [removed: through July 13, 2015] [added: for the three and six months ended June 30, 2015,] are included within the Company's financial statements.
| · | [removed: Heartland Crop Insurance, Inc. ("Heartland"),] [added: Heartland,] a Kansas based managing general agent and a direct subsidiary of Holdings, was acquired on January 2, 2011. Heartland specializes in crop insurance, which is written mainly through Everest National. [added: Effective August 24, 2016, the Company sold Heartland to CGB. The operating results of Heartland for the period owned are included within the Company's financial statements.] |
Premiums paid by the ceding company to a reinsurer for excess of loss reinsurance are not directly proportional to the [added: premiums that the ceding company receives because the reinsurer does not assume a proportionate risk.]
[removed: During] [added: Commencing in] 2015 the Company initiated a strategic build out of its insurance platform through the investment in key leadership hires which in turn has brought significant underwriting talent and stronger direction in achieving its insurance program strategic goals of increased premium volume and improved underwriting results.
The Company is building a world-class insurance platform capable of offering products across lines and geographies, complementing [removed: its] [added: our] leading global reinsurance franchise.
As part of this initiative, the Company received approval from Lloyd's of London to launch a new syndicate, which [removed: will provide] [added: provides] access to additional international business and new product opportunities to further diversify and broaden its insurance portfolio in [removed: 2016.][added: 2016 and going forward.]
For the [removed: 2015] [added: 2016] calendar year, no single customer (ceding company or insured) generated more than 3% of the Company's gross written premiums.
Approximately [removed: 62%, 27%] [added: 60%, 30%] and [removed: 11%] [added: 10%] of the Company's [removed: 2015] [added: 2016] gross written premiums were written in the broker reinsurance, insurance and direct reinsurance markets, respectively.
The Company's ten largest brokers accounted for an aggregate of approximately [removed: 58%] [added: 53%] of gross written premiums in [removed: 2015.][added: 2016.]
The largest broker, Marsh and McLennan, accounted for approximately [removed: 21%] [added: 19%] of gross written premiums.
The second largest broker, Aon Benfield Re, accounted for approximately [removed: 20%] [added: 18%] of gross written premiums.
It also writes business through [removed: general agents, brokers and] [added: brokers,] surplus lines [removed: brokers.][added: brokers and general agents.]
In [removed: 2015,] [added: 2016,] Arrowhead General Insurance Agency accounted for approximately [removed: 5%] [added: 6%] of the Company's gross written premium.
The Insurance operation writes property and casualty insurance directly and through [removed: general agents, brokers and] [added: brokers,] surplus lines brokers [added: and general agents] within the U.S. and Canada.
[removed: The Mt.][added: ("Mt.]
[added: The Company writes assumed business with the segregated cells of Mt] Logan Re [removed: business] [added: which] represents a diversified set of catastrophe exposures, diversified by risk/peril and across different geographical regions globally.
[removed: Logan Re,] [added: 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.
Logan [removed: Re segment.][added: Re").]
For selected financial information regarding these segments, see ITEM 8, "Financial Statements and Supplementary Data" - Note [removed: 19] [added: 17] of Notes to Consolidated Financial Statements and ITEM 7, "Management's Discussion and Analysis of Financial Condition and Results of Operation - Segment Results".
The following five year table presents the distribution of the Company's gross written premiums by its segments: U.S. Reinsurance, International, [removed: Bermuda, Insurance] [added: Bermuda] and [removed: Mt.][added: Insurance.]
| (Dollars in millions) | | [removed: 2015] [added: 2016] | | | | | | | | [removed: 2014] [added: 2015] | | | | | | | | [removed: 2013] [added: 2014] | | | | | | | | [removed: 2012] [added: 2013] | | | | | | | | [removed: 2011] [added: 2012] | | | | | | |
| Pro Rata (1) | | $ | [removed: 591.3] [added: 495.2] | | | | [removed: 10.1] [added: 8.2] | % | | $ | [removed: 665.7] [added: 591.3] | | | | [removed: 11.6] [added: 10.0] | % | | $ | [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] | % |
| Pro Rata (1) | | | [removed: 319.9] [added: 378.2] | | | | [removed: 5.4] [added: 6.3] | % | | | [removed: 382.4] [added: 319.9] | | | | [removed: 6.7] [added: 5.4] | % | | | [removed: 342.5] [added: 382.4] | | | | 6.6 | % | | | [removed: 273.6] [added: 342.5] | | | | [removed: 6.3] [added: 6.6] | % | | | [removed: 215.5] [added: 273.6] | | | | [removed: 5.0] [added: 6.3] | % |
| Excess | | | [removed: 171.3] [added: 198.2] | | | | [removed: 2.9] [added: 3.3] | % | | | [removed: 218.8] [added: 171.3] | | | | [removed: 3.8] [added: 2.9] | % | | | [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] | % |
| Pro Rata (1) | | | [removed: 699.3] [added: 671.9] | | | | [removed: 11.9] [added: 11.1] | % | | | [removed: 846.0] [added: 699.3] | | | | [removed: 14.7] [added: 11.9] | % | | | [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] | % |
| Pro Rata (1) | | | [removed: 113.4] [added: 111.7] | | | | 1.9 | % | | | [removed: 152.9] [added: 113.4] | | | | [removed: 2.7] [added: 1.9] | % | | | [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] | % |
| Excess | | | [removed: 110.4] [added: 109.7] | | | | [removed: 1.9] [added: 1.8] | % | | | [removed: 116.5] [added: 110.4] | | | | [removed: 2.0] [added: 1.9] | % | | | [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] | % |
| Pro Rata (1) | | | [removed: 265.8] [added: 261.1] | | | | [removed: 4.5] [added: 4.3] | % | | | [removed: 252.4] [added: 265.8] | | | | [removed: 4.4] [added: 4.5] | % | | | [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] | % |
| Pro Rata (1) | | | [removed: 281.0] [added: 318.6] | | | | [removed: 4.8] [added: 5.3] | % | | | [removed: 178.5] [added: 281.0] | | | | [removed: 3.1] [added: 4.8] | % | | | [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] | % |
Effective July 1, 2016, the Company established a new Irish holding company, Everest Dublin Insurance Holdings Limited (Ireland) ("Everest Dublin Holdings") and contributed Ireland Re to Everest Dublin Holdings.
During the third quarter of 2016, the Company established domestic subsidiaries, Everest Premier Insurance Company ("Everest Premier") and Everest Denali Insurance Company ("Everest Denali"), which will be used in the continued expansion of the Insurance operations.
Effective August 24, 2016, the Company sold its wholly-owned subsidiary, Heartland Crop Insurance Company ("Heartland"), a managing agent for crop insurance, to CGB Diversified Services, Inc. ("CGB").
The operating results of Heartland for the period owned are included within the Company's financial statements.
McKinley Insurance Company ("Mt.
Logan Reinsurance Limited.
Logan Re manages separate segregated accounts whose assets and capital relate mainly to third party external investors.
The segregated account activities related to third party external investors are not included as part of the Company's financial statements.
| · | Everest Denali, a Delaware insurance company and a direct subsidiary of Everest Re, is licensed to write property and casualty insurance in Delaware. |
| · | Everest Premier, a Delaware insurance company and a direct subsidiary of Everest Re, is licensed to write property and casualty insurance in Delaware. |
| Excess | | | 1,054.2 | | | | 17.5 | % | | | 1,065.3 | | | | 18.1 | % | | | 887.6 | | | | 15.4 | % | | | 648.0 | | | | 12.4 | % | | | 534.8 | | | | 12.4 | % |
| Total (2) | | | 2,125.8 | | | | 35.2 | % | | | 2,147.9 | | | | 36.5 | % | | | 2,154.5 | | | | 37.4 | % | | | 1,826.0 | | | | 35.0 | % | | | 1,310.7 | | | | 30.4 | % |
| Excess | | | 337.4 | | | | 5.6 | % | | | 411.2 | | | | 7.0 | % | | | 488.1 | | | | 8.5 | % | | | 431.0 | | | | 8.3 | % | | | 365.9 | | | | 8.5 | % |
| Total (2) | | | 1,230.7 | | | | 20.4 | % | | | 1,334.2 | | | | 22.6 | % | | | 1,603.6 | | | | 27.8 | % | | | 1,350.2 | | | | 25.9 | % | | | 1,192.3 | | | | 27.7 | % |
| Excess | | | 175.5 | | | | 2.9 | % | | | 165.3 | | | | 2.8 | % | | | 183.8 | | | | 3.2 | % | | | 162.6 | | | | 3.1 | % | | | 145.1 | | | | 3.4 | % |
| Total (2) | | | 890.4 | | | | 14.8 | % | | | 877.3 | | | | 14.9 | % | | | 786.4 | | | | 13.7 | % | | | 775.4 | | | | 14.9 | % | | | 734.4 | | | | 17.1 | % |
| Excess | | | 1,567.1 | | | | 26.0 | % | | | 1,641.8 | | | | 27.9 | % | | | 1,559.5 | | | | 27.1 | % | | | 1,241.6 | | | | 23.8 | % | | | 1,045.8 | | | | 24.3 | % |
| Total (2) | | | 4,246.9 | | | | 70.4 | % | | | 4,359.4 | | | | 74.0 | % | | | 4,544.5 | | | | 78.9 | % | | | 3,951.6 | | | | 75.7 | % | | | 3,237.4 | | | | 75.1 | % |
| Total (2) | | | 1,787.0 | | | | 29.6 | % | | | 1,532.3 | | | | 26.0 | % | | | 1,218.4 | | | | 21.1 | % | | | 1,268.7 | | | | 24.2 | % | | | 1,073.1 | | | | 24.9 | % |
| Excess | | | 1,567.1 | | | | 26.0 | % | | | 1,641.8 | | | | 27.9 | % | | | 1,559.5 | | | | 27.1 | % | | | 1,241.6 | | | | 23.8 | % | | | 1,045.8 | | | | 24.3 | % |
| Total (2) | | $ | 6,033.9 | | | | 100.0 | % | | $ | 5,891.7 | | | | 100.0 | % | | $ | 5,762.9 | | | | 100.0 | % | | $ | 5,220.4 | | | | 100.0 | % | | $ | 4,310.5 | | | | 100.0 | % |
2016 gross written premium totaled $14.6 million which was all on a property excess of loss basis.
portfolios of U.S. insurers.
Gross written premium of the Company's Singapore Lloyd's Syndicate totaled $32.8 million and consisted of 97.3% property business and 2.7% casualty business.
Insurance business written directly through the Company's offices represented $1,132.2 million or 63.0% of the segment's premium and $654.8 million or 27.0% was written through program administrators.
The Everest Specialty Commercial unit wrote $547.9 million in premium comprised of primary and excess casualty, and sports, leisure and entertainment business of $232.7 million, direct monoline workers compensation writings of $160.6 million and property business of $154.6 million.
The Everest Specialty Underwriters unit wrote $192.6 million in premium consisting primarily of management and professional liability coverages for financial institutions and other commercial enterprises.
Everest Underwriting Partners unit wrote $526.5 million in premium comprised of $241.4 million in workers compensation program business, $118.2 million of non-standard auto business and $166.9 million of other property and casualty business.
A&H primary insurance wrote $170.7 million in premium.
In addition, $230.4 million of crop insurance was written prior to the sale of Heartland in August, 2016.
The Canadian offices wrote $74.1 million and $44.8 million was written through the Lloyd's Syndicate.
| Southeast U.S., Wind | | $ | 771 | | | $ | 1,213 | | | $ | 1,544 | | | $ | 1,929 | | | $ | 2,424 | | | $ | 2,882 | |
| California, Earthquake | | | 113 | | | | 527 | | | | 1,050 | | | | 1,665 | | | | 2,204 | | | | 2,701 | |
| Texas, Wind | | | 165 | | | | 477 | | | | 915 | | | | 1,539 | | | | 2,266 | | | | 2,845 | |
| Southeast U.S., Wind | | $ | 460 | | | $ | 695 | | | $ | 921 | | | $ | 1,200 | | | $ | 1,499 | | | $ | 1,805 | |
| California, Earthquake | | | 95 | | | | 397 | | | | 731 | | | | 1,152 | | | | 1,509 | | | | 1,839 | |
| Texas, Wind | | | 130 | | | | 350 | | | | 620 | | | | 1,017 | | | | 1,497 | | | | 1,886 | |
Of this amount, $175.0 million, or 17.2%, was receivable from Resolution Group Reinsurance (Barbados) Limited ("Resolution Group"); $129.0 million, or 12.7%, was receivable from C.V. Starr (Bermuda) ("C.V. Starr"); $109.4 million, or 10.7%, was receivable from Zurich Vericherungs Gesellschaft ("Zurich"); $78.2 million, or 7.7% was receivable from Mt.
Logan Re segregated accounts and $51.1 million, or 5.0% was receivable from Federal Crop Insurance Corporation ("FCIC").
| Current year | | | 3,434.9 | | | | 3,129.7 | | | | 2,915.6 | |
Logan Re Ltd. ("Mt.
Logan Re") and effective July 1, 2013, Mt.
Logan Re established separate segregated accounts and issued non-voting redeemable preferred shares to capitalize the segregated accounts.
Accordingly, the financial position and operating results for Mt.
Logan Re are consolidated with the Company and the non-controlling interests in Mt.
Logan Re's operating results and equity are presented as separate captions in the Company's financial statements.
Group's active operating subsidiaries, excluding Mt.
Logan Re are each rated A+ ("Superior") by A.M. Best
| · | 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 2015, 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, 2015, Mt. Logan Re had shareholders' equity of $812.5 million. |
premiums that the ceding company receives because the reinsurer does not assume a proportionate risk.
Logan Re segment represents business written for the segregated accounts of Mt.
Logan Re, which were formed on July 1, 2013.
These segments, with the exception of Mt.
Logan Re segment is managed independently and seeks to write a diverse portfolio of catastrophe risks for each segregated account to achieve desired risk and return criteria.
Underwriting results include earned premium less losses and loss adjustment expenses ("LAE") incurred, commission and brokerage expenses and other underwriting expenses.
We measure our underwriting results using ratios, in particular loss, commission and brokerage and other underwriting expense ratios, which, respectively, divide incurred losses, commissions and brokerage and other underwriting expenses by premiums earned.
Mt.
Logan Re's business is sourced through operating subsidiaries of the Company; however, the activity is only reflected in the Mt.
For other inter-affiliate reinsurance, business is generally reported within the segment in which the business was first produced, consistent with how the business is managed.
Except for Mt.
Logan Re, 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.
Logan Re.
| Property | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Excess | | | 880.9 | | | | 15.0 | % | | | 772.6 | | | | 13.4 | % | | | 631.7 | | | | 12.1 | % | | | 534.8 | | | | 12.4 | % | | | 380.6 | | | | 8.9 | % |
| Casualty | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total (2) | | | 1,963.5 | | | | 33.4 | % | | | 2,039.6 | | | | 35.5 | % | | | 1,809.7 | | | | 34.7 | % | | | 1,310.7 | | | | 30.4 | % | | | 1,346.8 | | | | 31.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Excess | | | 371.0 | | | | 6.3 | % | | | 467.0 | | | | 8.1 | % | | | 426.5 | | | | 8.2 | % | | | 365.9 | | | | 8.5 | % | | | 315.7 | | | | 7.4 | % |
| Total (2) | | | 1,294.0 | | | | 22.0 | % | | | 1,582.4 | | | | 27.5 | % | | | 1,345.8 | | | | 25.8 | % | | | 1,192.3 | | | | 27.7 | % | | | 1,238.4 | | | | 28.9 | % |
| Excess | | | 140.5 | | | | 2.4 | % | | | 167.7 | | | | 2.9 | % | | | 161.5 | | | | 3.1 | % | | | 145.1 | | | | 3.4 | % | | | 162.6 | | | | 3.8 | % |
| Total (2) | | | 852.5 | | | | 14.5 | % | | | 770.3 | | | | 13.5 | % | | | 774.3 | | | | 14.9 | % | | | 734.4 | | | | 17.1 | % | | | 725.3 | | | | 17.0 | % |
| Excess | | | 1,392.4 | | | | 23.7 | % | | | 1,407.3 | | | | 24.5 | % | | | 1,219.7 | | | | 23.4 | % | | | 1,045.8 | | | | 24.3 | % | | | 858.9 | | | | 20.0 | % |
| Total (2) | | | 4,110.0 | | | | 69.9 | % | | | 4,392.3 | | | | 76.4 | % | | | 3,929.7 | | | | 75.3 | % | | | 3,237.4 | | | | 75.1 | % | | | 3,310.6 | | | | 77.2 | % |
| Total (2) | | | 1,532.3 | | | | 26.1 | % | | | 1,218.4 | | | | 21.2 | % | | | 1,268.7 | | | | 24.3 | % | | | 1,073.1 | | | | 24.9 | % | | | 975.6 | | | | 22.8 | % |
| Mt. Logan Re | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Pro Rata (1) | | | \- | | | | 0.0 | % | | | \- | | | | 0.0 | % | | | \- | | | | 0.0 | % | | | \- | | | | \- | | | | \- | | | | \- | |
| Excess | | | 234.0 | | | | 4.0 | % | | | 138.4 | | | | 2.4 | % | | | 20.2 | | | | 0.4 | % | | | \- | | | | \- | | | | \- | | | | \- | |
| Excess | | | \- | | | | 0.0 | % | | | \- | | | | 0.0 | % | | | \- | | | | 0.0 | % | | | \- | | | | \- | | | | \- | | | | \- | |
| Total (2) | | | 234.0 | | | | 4.0 | % | | | 138.4 | | | | 2.4 | % | | | 20.2 | | | | 0.4 | % | | | \- | | | | \- | | | | \- | | | | \- | |
An excerpt. Shown here: 40 of 181 rewritten, 40 of 85 added and 40 of 200 removed. The counts are complete. For every sentence, read Item 1. BUSINESS in the FY2016 filing and the FY2015 filing.
Cover and table of contents
11 rewritten, 1 added, 2 removed, 57 unchanged
10-K 1 [removed: group10k2015.htm] [added: group10k2016.htm] EVEREST RE GROUP 10-K 2016
For the fiscal year ended December 31, [removed: 2015][added: 2016]
| Securities registered pursuant to Section 12(b) of the Act: | | | [removed: | | | |]
| Title of Each Class Common Shares, $.01 par value per share | | [removed: | |] Name of Each Exchange on Which Registered New York Stock Exchange | [removed: | |]
The aggregate market value on June 30, [removed: 2015,] [added: 2016,] 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: $8,043,482] [added: $7,650,846] thousand.
At February 1, [removed: 2016,] [added: 2017,] the number of shares outstanding of the registrant's common shares was [removed: 42,694,355.][added: 40,906,436.]
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: 2015] [added: 2017] 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: 2015.][added: 2016.]
Risk Factors [removed: 28][added: 26]
Unresolved Staff Comments [removed: 40][added: 39]
Properties [removed: 40][added: 39]
Legal Proceedings [removed: 41][added: 39]
| --- | --- | --- |
| | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
Item 4. Mine Safety Disclosures 39
7 rewritten, 0 added, 0 removed, 11 unchanged
Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities [removed: 41][added: 39]
Selected Financial Data [removed: 44][added: 42]
Management's Discussion and Analysis of Financial Condition and Results of Operations [removed: 45][added: 43]
Quantitative and Qualitative Disclosures About Market Risk [removed: 81][added: 78]
Financial Statements and Supplementary Data [removed: 81][added: 78]
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure [removed: 81][added: 78]
Controls and Procedures [removed: 82][added: 79]
Item 9B. Other Information 79
7 rewritten, 0 added, 0 removed, 16 unchanged
Directors, Executive Officers and Corporate Governance [removed: 82][added: 79]
Executive Compensation [removed: 83][added: 80]
Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters [removed: 83][added: 80]
Certain Relationships and Related Transactions, and Director Independence [removed: 83][added: 80]
Principal Accountant Fees and Services [removed: 83][added: 80]
Exhibits and Financial Statement Schedules [removed: 83][added: 80]
As used in this document, "Group" means Everest Re Group, Ltd.; "Holdings Ireland" means Everest Underwriting Group (Ireland) Limited; "Ireland Re" means Everest Reinsurance Company (Ireland), [removed: Limited;] [added: designated activity company;] "Holdings" means Everest Reinsurance Holdings, Inc.; "Everest Re" means Everest Reinsurance Company and its subsidiaries (unless the context otherwise requires); and the "Company", "we", "us", and "our" means Everest Re Group, Ltd. and its subsidiaries.
Item 2. PROPERTIES
1 rewritten, 0 added, 0 removed, 3 unchanged
The Company's other [removed: 24] [added: 22] locations occupy a total of approximately [removed: 194,600] [added: 181,200] square feet, all of which are leased.
Item 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
23 rewritten, 22 added, 22 removed, 19 unchanged
| First Quarter | | $ | [removed: 182.62] [added: 197.43] | | | $ | [removed: 166.99] [added: 169.35] | | | $ | [removed: 153.05] [added: 182.62] | | | $ | [removed: 137.48] [added: 166.99] | |
| Second Quarter | | | [removed: 186.29] [added: 199.27] | | | | [removed: 173.10] [added: 169.21] | | | | [removed: 161.87] [added: 186.29] | | | | [removed: 150.81] [added: 173.10] | |
| Third Quarter | | | [removed: 191.54] [added: 195.15] | | | | [removed: 167.74] [added: 177.74] | | | | [removed: 165.46] [added: 191.54] | | | | [removed: 155.91] [added: 167.74] | |
| Fourth Quarter | | | [removed: 188.82] [added: 218.38] | | | | [removed: 172.19] [added: 184.24] | | | | [removed: 176.27] [added: 188.82] | | | | [removed: 158.36] [added: 172.19] | |
The number of record holders of common shares as of February 1, [removed: 2016] [added: 2017] was [removed: 285.][added: 324.]
The Company declared and paid its quarterly cash dividend of [removed: $0.75] [added: $0.95] per share for the first three quarters of [removed: 2014.][added: 2015.]
The Company declared and paid its quarterly cash dividend of [removed: $0.95] [added: $1.15] per share for the fourth quarter of [removed: 2014] [added: 2015] and for the first three quarters of [removed: 2015.][added: 2016.]
The Company declared and paid its quarterly cash dividend of [removed: $1.15] [added: $1.25] per share for the fourth quarter of [removed: 2015.][added: 2016.]
On February [removed: 24, 2016,] [added: 22, 2017,] the Company's Board of Directors declared a dividend of [removed: $1.15] [added: $1.25] per share, payable on or before March [removed: 23, 2016] [added: 22, 2017] to shareholders of record on March [removed: 9, 2016.][added: 8, 2017.]
See "Regulatory Matters – Dividends" and ITEM 8, "Financial Statements and Supplementary Data" - Note [removed: 16] [added: 14] of Notes to Consolidated Financial Statements.
| Issuer Purchases of Equity Securities | | | | | | | | | | | | | [added: | | | |]
| | | | | | | | | | | [added: | | | |] Maximum Number (or | | |
| | | | | | | | [added: | | |] Total Number of | | | [added: |] Approximate Dollar | | |
| | | | | | | | [added: | | |] Shares (or Units) | | | [added: |] Value) of Shares (or | | |
| | | | | | | | [added: | | |] Purchased as Part | | | [added: |] Units) that May Yet | | |
| | [added: |] Total Number of | | | | | | [added: | |] of Publicly | | | [added: |] Be Purchased Under | | |
| | [added: |] Shares (or Units) | | | [added: |] Average Price Paid | | | [added: |] Announced Plans or | | | [added: |] the Plans or | | |
| Period | [added: |] Purchased | | | [added: |] per Share (or Unit) | | | [added: |] Programs | | | [added: |] Programs (1) | | |
The following Performance Graph compares cumulative total shareholder returns on the Common Shares (assuming reinvestment of dividends) from December 31, [removed: 2010] [added: 2011] through December 31, [removed: 2015,] [added: 2016,] with the cumulative total return of the Standard & Poor's 500 Index and the Standard & Poor's Insurance (Property and Casualty) Index.
[removed: ][added: ]
[removed: |] *$100 invested on [removed: 12/31/10] [added: 12/31/11] in stock or index, including reinvestment of dividends. [removed: | | | | | | | |]
[removed: |] Fiscal year ending December 31. [removed: | | | | | | | |]
[removed: |] Copyright© [removed: 2016] [added: 2017] S&P, a division of McGraw Hill Financial. [removed: All rights reserved. | | | | | | | |]
| | | 2016 | | | | | | | | 2015 | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | (a) | | | | (b) | | | | (c) | | | | (d) | | |
| January 1 - 31, 2016 | | | 0 | | | $ | \- | | | | 0 | | | | 4,081,701 | |
| February 1 - 28, 2016 | | | 493,367 | | | $ | 185.1719 | | | | 450,199 | | | | 3,631,502 | |
| March 1 - 31, 2016 | | | 14,161 | | | $ | 185.9969 | | | | 14,161 | | | | 3,617,341 | |
| April 1 - 30, 2016 | | | 2,656 | | | $ | 185.8844 | | | | 2,500 | | | | 3,614,841 | |
| May 1 - 31, 2016 | | | 543,239 | | | $ | 184.3599 | | | | 542,228 | | | | 3,072,613 | |
| June 1 - 30, 2016 | | | 0 | | | $ | \- | | | | 0 | | | | 3,072,613 | |
| July 1 - 31, 2016 | | | 165 | | | $ | 181.8200 | | | | 0 | | | | 3,072,613 | |
| August 1 - 31, 2016 | | | 573,362 | | | $ | 189.6655 | | | | 573,362 | | | | 2,499,251 | |
| September 1 - 30, 2016 | | | 444,161 | | | $ | 190.9319 | | | | 440,495 | | | | 2,058,756 | |
| October 1 - 31, 2016 | | | 36,756 | | | $ | 192.0696 | | | | 36,756 | | | | 2,022,000 | |
| November 1 - 30, 2016 | | | 567 | | | $ | 211.9745 | | | | 0 | | | | 2,022,000 | |
| December 1 - 31, 2016 | | | 1,025 | | | $ | 216.4150 | | | | 0 | | | | 2,022,000 | |
| Total | | | 2,109,459 | | | $ | \- | | | | 2,059,701 | | | | 2,022,000 | |
| | | | | | | | | | | | | |
| | | 12/11 | | 12/12 | | 12/13 | | 12/14 | | 12/15 | | 12/16 |
| Everest Re Group, Ltd. | | 100.00 | | 133.30 | | 191.98 | | 213.95 | | 235.21 | | 284.83 |
| S&P 500 | | 100.00 | | 116.00 | | 153.58 | | 174.60 | | 177.01 | | 198.18 |
| S&P Property & Casualty Insurance | | 100.00 | | 120.11 | | 166.10 | | 192.25 | | 210.57 | | 243.65 |
All rights reserved.
| | | 2015 | | | | | | | | 2014 | | | | | | |
| | (a) | | | (b) | | | (c) | | | (d) | | |
| January 1 - 31, 2015 | | 213,754 | | $ | 168.6387 | | | 213,754 | | | 6,129,809 | |
| February 1 - 28, 2015 | | 127,110 | | $ | 177.7273 | | | 81,725 | | | 6,048,084 | |
| March 1 - 31, 2015 | | 144,193 | | $ | 175.6124 | | | 139,399 | | | 5,908,685 | |
| April 1 - 30, 2015 | | 0 | | $ | \- | | | 0 | | | 5,908,685 | |
| May 1 - 31, 2015 | | 278,524 | | $ | 179.9757 | | | 277,500 | | | 5,631,185 | |
| June 1 - 30, 2015 | | 0 | | $ | \- | | | 0 | | | 5,631,185 | |
| July 1 - 31, 2015 | | 1,756 | | $ | 183.2850 | | | 0 | | | 5,631,185 | |
| August 1 - 31, 2015 | | 514,629 | | $ | 177.4608 | | | 514,629 | | | 5,116,556 | |
| September 1 - 30, 2015 | | 626,078 | | $ | 174.4833 | | | 622,844 | | | 4,493,712 | |
| October 1 - 31, 2015 | | 0 | | $ | \- | | | 0 | | | 4,493,712 | |
| November 1 - 30, 2015 | | 283,767 | | $ | 180.7646 | | | 282,657 | | | 4,211,055 | |
| December 1 - 31, 2015 | | 129,354 | | $ | 185.4092 | | | 129,354 | | | 4,081,701 | |
| Total | | 2,319,165 | | $ | \- | | | 2,261,862 | | | 4,081,701 | |
Through February 23, 2016, the Company purchased an additional 435,099 shares for $80.5 million under the share repurchase program.
| | | | | | 12/10 | | 12/11 | | 12/12 | | 12/13 | | 12/14 | | 12/15 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Everest Re Group, Ltd. | | | | | 100.00 | | 101.39 | | 135.15 | | 194.65 | | 216.92 | | 238.48 |
| S&P 500 | | | | | 100.00 | | 102.11 | | 118.45 | | 156.82 | | 178.29 | | 180.75 |
| S&P Property & Casualty Insurance | | | | | 100.00 | | 99.75 | | 119.81 | | 165.69 | | 191.78 | | 210.05 |
| --- | --- | --- | --- | --- | --- | --- | --- |
Item 6. SELECTED FINANCIAL DATA
20 rewritten, 14 added, 17 removed, 22 unchanged
The following selected consolidated GAAP financial data of the Company as of and for the years ended December 31, [added: 2016,] 2015, 2014, [removed: 2013, 2012] [added: 2013] and [removed: 2011,] [added: 2012,] were derived from the audited consolidated financial statements of the Company.
| (Dollars in millions, except per share amounts) | | [removed: 2015] [added: 2016] | | | | [removed: 2014] [added: 2015] | | | | [removed: 2013] [added: 2014] | | | | [removed: 2012] [added: 2013] | | | | [removed: 2011] [added: 2012] | | |
| Net investment income | | | [removed: 473.8] [added: 473.1] | | | | [removed: 530.6] [added: 473.5] | | | | [removed: 548.5] [added: 530.5] | | | | [removed: 600.2] [added: 548.5] | | | | [removed: 620.0] [added: 600.2] | |
| Net realized capital gains (losses) | | | [removed: (184.1] [added: (7.2] | ) | | | [removed: 84.0] [added: (184.1] | [added: )] | | | [removed: 300.2] [added: 84.0] | | | | [removed: 164.4] [added: 300.2] | | | | [removed: 6.9] [added: 164.4] | |
| Commission, brokerage, taxes and fees | | | [removed: 1,202.0] [added: 1,188.7] | | | | [removed: 1,135.6] [added: 1,183.6] | | | | [removed: 977.6] [added: 1,121.1] | | | | [removed: 952.7] [added: 975.6] | | | | [removed: 950.5] [added: 952.7] | |
| Corporate expenses | | | [removed: 23.3] [added: 27.2] | | | | [removed: 23.4] [added: 23.3] | | | | [removed: 24.8] [added: 23.4] | | | | [removed: 24.0] [added: 25.8] | | | | [removed: 16.5] [added: 24.0] | |
| amortization expense | | | 36.2 | | | | [removed: 38.5] [added: 36.2] | | | | [removed: 46.1] [added: 38.5] | | | | [removed: 53.7] [added: 46.1] | | | | [removed: 52.3] [added: 53.7] | |
| Income tax expense (benefit) | | | [removed: 134.0] [added: 103.5] | | | | [removed: 187.7] [added: 134.0] | | | | [removed: 289.7] [added: 187.7] | | | | [removed: 110.6] [added: 289.7] | | | | [removed: (153.5] [added: 110.6] | [removed: )] |
| Net income (loss) [removed: attributable to Everest Re Group] [added: (2)] | | | [removed: 977.9] [added: 996.3] | | | | [removed: 1,199.2] [added: 977.9] | | | | [removed: 1,259.4] [added: 1,199.2] | | | | [removed: 829.0] [added: 1,259.4] | | | | [removed: (80.5] [added: 829.0] | [removed: )] |
| EARNINGS PER COMMON [removed: SHARE ATTRIBUTABLE TO EVEREST RE:] [added: SHARE:] | | | | | | | | | | | | | | | | | | | | |
| Basic (3) | | $ | [removed: 22.29] [added: 23.85] | | | $ | [removed: 26.16] [added: 22.29] | | | $ | [removed: 25.67] [added: 26.16] | | | $ | [removed: 15.85] [added: 25.67] | | | $ | [removed: (1.49] [added: 15.85] | [removed: )] |
| Diluted (4) | | $ | [removed: 22.10] [added: 23.68] | | | $ | [removed: 25.91] [added: 22.10] | | | $ | [removed: 25.44] [added: 25.91] | | | $ | [removed: 15.79] [added: 25.44] | | | $ | [removed: (1.49] [added: 15.79] | [removed: )] |
| Dividends declared | | $ | [removed: 4.00] [added: 4.70] | | | $ | [removed: 3.20] [added: 4.00] | | | $ | [removed: 2.19] [added: 3.20] | | | $ | [removed: 1.92] [added: 2.19] | | | $ | 1.92 | |
| Other underwriting expense ratio | | | [removed: 26.8] [added: 28.0] | % | | | [removed: 26.6] [added: 27.2] | % | | | [removed: 25.6] [added: 26.8] | % | | | [removed: 27.9] [added: 25.6] | % | | | [removed: 27.6] [added: 27.9] | % |
| Loss and LAE reserves | | | [removed: 9,951.8] [added: 10,312.3] | | | | [removed: 9,720.8] [added: 9,951.8] | | | | [removed: 9,673.2] [added: 9,720.8] | | | | [removed: 10,069.1] [added: 9,673.2] | | | | [removed: 10,123.2] [added: 10,069.1] | |
| Shareholders' equity | | | [removed: 7,608.6] [added: 8,075.4] | | | | [removed: 7,451.1] [added: 7,608.6] | | | | [removed: 6,968.3] [added: 7,451.1] | | | | [removed: 6,733.5] [added: 6,968.3] | | | | [removed: 6,071.4] [added: 6,733.5] | |
| Book value per share (6) | | | [removed: 178.21] [added: 197.45] | | | | [removed: 166.75] [added: 178.21] | | | | [removed: 146.57] [added: 166.75] | | | | [removed: 130.96] [added: 146.57] | | | | [removed: 112.99] [added: 130.96] | |
| (3) | Based on weighted average basic common shares outstanding of [added: 41.3 million,] 43.4 million, 45.4 million, 48.6 million, [removed: 51.9 million] and [removed: 53.8] [added: 51.9] million for [added: 2016,] 2015, 2014, 2013, [removed: 2012] and [removed: 2011,] [added: 2012,] respectively. |
| (4) | Based on weighted average diluted common shares outstanding of [added: 41.8 million,] 43.8 million, 45.8 million, 49.1 million and 52.1 million for [added: 2016,] 2015, 2014, 2013 and 2012, respectively. [removed: Diluted calculation was not applicable for 2011.] |
| (6) | Based on [added: 40.9 million,] 42.7 million, 44.7 million, 47.5 million, [removed: 51.4 million] and [removed: 53.7] [added: 51.4] million common shares outstanding for December 31, [added: 2016,] 2015, 2014, 2013, [removed: 2012] and [removed: 2011,] [added: 2012,] respectively. |
| Gross written premiums | | $ | 6,033.9 | | | $ | 5,891.7 | | | $ | 5,762.9 | | | $ | 5,220.4 | | | $ | 4,310.5 | |
| Net written premiums | | | 5,270.9 | | | | 5,182.3 | | | | 5,132.4 | | | | 4,986.4 | | | | 4,081.1 | |
| Premiums earned | | | 5,320.5 | | | | 5,292.8 | | | | 5,043.7 | | | | 4,736.3 | | | | 4,164.6 | |
| expenses (including catastrophes) | | | 3,139.6 | | | | 3,064.7 | | | | 2,875.9 | | | | 2,795.9 | | | | 2,745.3 | |
| Net catastrophe losses (1) | | | 286.0 | | | | 50.7 | | | | 50.1 | | | | 176.6 | | | | 361.1 | |
| Other underwriting expenses | | | 302.7 | | | | 257.1 | | | | 233.1 | | | | 234.1 | | | | 207.7 | |
| Income (loss) before taxes | | | 1,099.8 | | | | 1,111.9 | | | | 1,386.8 | | | | 1,549.1 | | | | 939.5 | |
| Loss ratio | | | 59.0 | % | | | 57.9 | % | | | 57.0 | % | | | 59.0 | % | | | 65.9 | % |
| Combined ratio (2) | | | 87.0 | % | | | 85.1 | % | | | 83.8 | % | | | 84.6 | % | | | 93.8 | % |
| Total investments and cash | | $ | 17,483.1 | | | $ | 16,676.4 | | | $ | 16,880.8 | | | $ | 16,462.8 | | | $ | 16,576.2 | |
| Total assets | | | 21,321.5 | | | | 20,545.4 | | | | 20,339.9 | | | | 19,712.3 | | | | 19,767.9 | |
| Total debt | | | 633.2 | | | | 633.0 | | | | 632.7 | | | | 486.0 | | | | 808.2 | |
| Total liabilities | | | 13,246.1 | | | | 12,936.8 | | | | 12,888.8 | | | | 12,744.1 | | | | 13,034.4 | |
| _____________________________ | | | | | | | | | | | | | | | | | | | | |
| Gross written premiums | | $ | 5,876.3 | | | $ | 5,749.0 | | | $ | 5,218.6 | | | $ | 4,310.5 | | | $ | 4,286.2 | |
| Net written premiums | | | 5,378.3 | | | | 5,256.9 | | | | 5,004.8 | | | | 4,081.1 | | | | 4,108.9 | |
| Premiums earned | | | 5,481.5 | | | | 5,169.1 | | | | 4,753.5 | | | | 4,164.6 | | | | 4,101.3 | |
| expenses (including catastrophes) | | | 3,101.9 | | | | 2,906.5 | | | | 2,800.3 | | | | 2,745.3 | | | | 3,726.2 | |
| Net catastrophe losses (1) | | | 63.1 | | | | 56.0 | | | | 177.7 | | | | 361.1 | | | | 1,237.6 | |
| Other underwriting expenses | | | 266.0 | | | | 240.4 | | | | 237.1 | | | | 207.7 | | | | 182.4 | |
| Income (loss) before taxes | | | 1,208.5 | | | | 1,446.1 | | | | 1,555.0 | | | | 939.5 | | | | (233.9 | ) |
| Net income (loss) (2) | | | 1,074.5 | | | | 1,258.5 | | | | 1,265.3 | | | | 829.0 | | | | (80.5 | ) |
| Net (income) loss attributable to noncontrolling interests | | | (96.6 | ) | | | (59.3 | ) | | | (5.9 | ) | | | \- | | | | \- | |
| Loss ratio | | | 56.6 | % | | | 56.2 | % | | | 58.9 | % | | | 65.9 | % | | | 90.9 | % |
| Combined ratio (2) | | | 83.4 | % | | | 82.8 | % | | | 84.5 | % | | | 93.8 | % | | | 118.5 | % |
| Total investments and cash | | $ | 17,672.2 | | | $ | 17,435.9 | | | $ | 16,596.5 | | | $ | 16,576.2 | | | $ | 15,797.4 | |
| Total assets | | | 21,426.2 | | | | 20,817.8 | | | | 19,808.0 | | | | 19,777.9 | | | | 18,893.6 | |
| Total debt | | | 638.4 | | | | 638.4 | | | | 488.3 | | | | 818.2 | | | | 818.1 | |
| Total liabilities | | | 13,060.7 | | | | 12,945.2 | | | | 12,746.4 | | | | 13,044.4 | | | | 12,822.2 | |
| Redeemable noncontrolling interests - Mt. Logan Re | | | 756.9 | | | | 421.6 | | | | 93.4 | | | | \- | | | | \- | |
_______________________________________________________
Item 9A. CONTROLS AND PROCEDURES
3 rewritten, 0 added, 0 removed, 16 unchanged
Management has assessed the effectiveness of our internal control over financial reporting as of December 31, [removed: 2015.][added: 2016.]
Based on our assessment we concluded that, as of December 31, [removed: 2015,] [added: 2016,] our internal control over financial reporting is effective based on those criteria.
The effectiveness of the Company's internal control over financial reporting as of December 31, [removed: 2015,] [added: 2016,] has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report, which appears herein.
Item 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
1 rewritten, 0 added, 0 removed, 0 unchanged
Reference is made to the sections captioned "Information Concerning Nominees", "Information Concerning Continuing Directors and Executive Officers", "Audit Committee", "Nominating and Governance Committee", "Code of Ethics for CEO and Senior Financial Officers" and "Section 16(a) Beneficial Ownership Reporting Compliance" in our proxy statement for the [removed: 2016] [added: 2017] Annual General Meeting of Shareholders, which will be filed with the Commission within 120 days of the close of our fiscal year ended December 31, [removed: 2015] [added: 2016] (the "Proxy Statement"), which sections are incorporated herein by reference.
Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
743 rewritten, 886 added, 239 removed, 1,299 unchanged
Pursuant to the requirements of Section 13 or 15(d) 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 on [removed: February 29, 2016.][added: March 1, 2017.]
| [removed: |] EVEREST RE GROUP, LTD. | | |
| [removed: |] By: | /S/ DOMINIC J. ADDESSO | |
| | [removed: |] Dominic J. Addesso | |
| | [removed: |] (President and Chief Executive Officer) | |
| [removed: /S/ DOMINIC] [added: Dominic] J. [removed: ADDESSO |] [added: Addesso] | [removed: President] and [removed: Chief Executive Officer and] Director (Principal Executive Officer) | | [removed: February 29, 2016] | | | [added: |]
| /S/ CRAIG HOWIE | | Executive Vice President and Chief [removed: Financial Officer] | | [removed: February 29, 2016] [added: March 1, 2017] | | |
| Craig Howie | [added: Financial Officer] | | | | | |
| /S/ KEITH T. SHOEMAKER | | Comptroller (Principal Accounting Officer) | | [removed: February 29, 2016] [added: March 1, 2017] | | |
| /S/ JOSEPH V. TARANTO | | Chairman | | [removed: February 29, 2016] [added: March 1, 2017] | | |
| /S/ JOHN J. AMORE | | Director | | [removed: February 29, 2016] [added: March 1, 2017] | | |
| /S/ JOHN R. DUNNE | | Director | | [removed: February 29, 2016] [added: March 1, 2017] | | |
| /S/ WILLIAM F. GALTNEY, JR. | | Director | | [removed: February 29, 2016] [added: March 1, 2017] | | |
| /S/ GERALDINE LOSQUADRO | | Director | | [removed: February 29, 2016] [added: March 1, 2017] | | |
| /S/ ROGER M. SINGER | | Director | | [removed: February 29, 2016] [added: March 1, 2017] | | |
| /S/ JOHN A. WEBER | | Director | | [removed: February 29, 2016] [added: March 1, 2017] | | |
[removed: |] INDEX TO EXHIBITS [removed: | | | | | |]
| Exhibit No. | | | [removed: | | |]
| [removed: | 2.] [added: 2.1] | [removed: 1] | Agreement and Plan of Merger among Everest Reinsurance Holdings, Inc., Everest Re Group, Ltd. and Everest Re Merger Corporation, incorporated herein by reference to Exhibit 2.1 to the Registration Statement on Form S-4 (No. 333-87361) |
| [removed: | 3.] [added: 3.1] | [removed: 1] | Memorandum of Association of Everest Re Group, Ltd., incorporated herein by reference to Exhibit 3.1 to the Registration Statement on Form S-4 (No. 333-87361) |
| [removed: | 3.] [added: 3.2] | [removed: 2] | Bye-Laws of Everest Re Group, Ltd., incorporated herein by reference to exhibit 3.2 to the Everest Re Group, Ltd., Quarterly Report for Form 10-Q for the quarter ended June 30, 2011 (the "second quarter 2011 10-Q") |
| [removed: | 4.] [added: 4.1] | [removed: 1] | Specimen Everest Re Group, Ltd. common share certificate, incorporated herein by reference to Exhibit 4.1 of the Registration Statement on Form S-4 (No. 333-87361) |
| [removed: | 4.] [added: 4.2] | [removed: 2] | Indenture, dated March 14, 2000, between Everest Reinsurance Holdings, Inc. and The Chase Manhattan Bank (now known as JPMorgan Chase Bank), as Trustee, incorporated herein by reference to Exhibit 4.1 to Everest Reinsurance Holdings, Inc. Form 8-K filed on March 15, 2000 |
| [removed: | 4.] [added: 4.3] | [removed: 3] | [removed: Second] [added: Third] Supplemental Indenture relating to Holdings [removed: 6.20% Junior Subordinated Debt Securities] [added: 5.40% Senior Notes] due [removed: March 29, 2034,] [added: October 15, 2014,] dated as of [removed: March 29,] [added: October 12,] 2004, among [removed: Holdings, Group] [added: Holdings] and JPMorgan Chase Bank, as Trustee, incorporated herein by reference to Exhibit 4.1 to Everest Reinsurance Holdings, Inc. Form 8-K filed on [removed: March 30, 2004 (the "March 30,] [added: October 12,] 2004 [removed: 8-K")] |
| [removed: | 4.] [added: 4.4] | [removed: 7] | [removed: Third] [added: Fourth] Supplemental Indenture relating to Holdings [removed: 5.40%] [added: $400.0 million 4.868%] Senior Notes due [removed: October 15, 2014,] [added: June 1, 2044,] dated [removed: as of October 12, 2004, among] [added: June 5, 2014, between] Holdings and [removed: JPMorgan Chase Bank,] [added: The Bank of New York Mellon,] as Trustee, incorporated herein by reference to Exhibit 4.1 to Everest Reinsurance Holdings, Inc. Form 8-K filed on [removed: October 12, 2004] [added: June 5, 2014] |
| [removed: | *10.] [added: *10.1] | [removed: 1] | Everest Re Group, Ltd. Annual Incentive Plan effective January 1, 1999, incorporated herein by reference to Exhibit 10.1 to Everest Reinsurance Holdings, Inc. Annual Report on Form 10-K for the year ended December 31, 1998 (the "1998 10-K") |
| [removed: | *10.] [added: *10.2] | [removed: 2] | Everest Re Group, Ltd. 2003 Non-Employee Director Equity Compensation Plan, incorporated herein by reference to Exhibit 4.1 to the Registration Statement on Form S-8 (No. 333-105483) |
| [removed: | *10.] [added: *10.3] | [removed: 3] | Form of Non-Qualified Stock Option Award Agreement under the Everest Re Group, Ltd. 2003 Non-Employee Director Equity Compensation Plan, incorporated herein by reference to Exhibit 10.47 to Everest Re Group, Ltd., Report on Form 10-K for the year ended December 31, 2004 |
| [removed: | *10.] [added: *10.4] | [removed: 4] | Amendment of Everest Re Group, Ltd. 2003 Non-Employee Director Equity Compensation Plan adopted by shareholders at the annual general meeting on May 25, 2005, incorporated herein by reference to Appendix B to the 2005 Proxy Statement filed on April 14, 2005 |
| [removed: | *10.] [added: *10.5] | [removed: 5] | Form of Restricted Stock Award Agreement under the Everest Re Group, Ltd. 2003 Non-Employee Director Equity Compensation Plan, incorporated by reference to Exhibit 10.1 to Everest Re Group, Ltd. Form 8-K filed on September 22, 2005 |
| [removed: | 10.] [added: 10.6] | [removed: 6] | Completion of Tender Offer relating to Everest Reinsurance Holdings, Inc. 6.60% Fixed to Floating Rate Long Term Subordinated Notes (LoTSSM) dated March 19, 2009, incorporated herein by reference to Exhibit 99.1 to Everest Re Group, Ltd. Form 8-K filed on March 31, 2009 |
| [removed: | *10.] [added: *10.7] | [removed: 7] | Everest Re Group, Ltd. 2009 Stock Option and Restricted Stock Plan for Non-Employee Directors incorporated herein by reference to Exhibit 10.1 to Everest Re Group, Ltd. second quarter 2009 10-Q |
| [removed: | *10.] [added: *10.8] | [removed: 8] | Everest Re Group, Ltd. 2010 Stock Incentive Plan for employees is incorporated herein by reference to exhibit 10.2 to Everest Re Group, Ltd. Form S-8 filed on September 30, 2010 |
| [removed: | *10.] [added: *10.9] | [removed: 9] | Amendment of Executive Performance Annual Incentive Plan adopted by shareholders at the annual general meeting on May 18, 2011, incorporated herein by reference to Appendix B to the 2011 Proxy Statement filed on April 15, 2011 |
| [removed: | 10.] [added: 10.10] | [removed: 11] | Credit Agreement, dated June 22, 2012, between Everest Re Group, Ltd., Everest Reinsurance (Bermuda), Ltd. and Everest International Reinsurance, Ltd., certain lenders party thereto and Wells Fargo Bank, N.A. as administrative agent, providing for an $800.0 million four year senior credit facility, incorporated herein by reference to Exhibit 10.31 to Everest Re Group, Ltd. Form 10-Q filed on August 9, 2012. This new agreement replaces the July 27, 2007 five year, $850.0 million senior credit facility |
| [removed: | *10.] [added: *10.11] | [removed: 12] | Employment agreement between Everest Global Services, Inc., Everest Reinsurance Holdings, Inc. and Dominic J. Addesso, dated July 1, 2012, incorporated herein by reference to Exhibit 10.1 to Everest Re Group, Ltd. Form 8-K filed on July 20, 2012 |
| [removed: | *10.] [added: *10.18] | [removed: 13] | Employment agreement between Everest Global Services, Inc., Everest Reinsurance [removed: Holdings,] [added: Holdings] Inc. and [removed: Joseph V. Taranto,] [added: Dominic J. Addesso,] dated [removed: July 1, 2012,] [added: December 4, 2015,] incorporated herein by reference to Exhibit [removed: 10.2] [added: 10.1] to Everest Re Group, Ltd. Form 8-K filed on [removed: July 20, 2012] [added: December 8, 2015] |
| [removed: | *10.] [added: *10.28] | [removed: 14] | [removed: Change of Control Agreement] [added: Employment agreement] between [removed: and among] Everest [removed: Reinsurance Company, Everest Reinsurance Holdings, Inc., Everest Re Group, Ltd., Everest] Global Services, [removed: Inc.] [added: Inc.,] and [removed: Joseph V. Taranto,] [added: Sanjoy Mukherjee,] dated January [removed: 1, 2012,] [added: 3, 2017,] incorporated herein by reference to Exhibit [removed: 10.3] [added: 10.1] to Everest Re Group, Ltd. Form 8-K filed on [removed: July 20, 2012] [added: January 6, 2017] |
| [removed: | *10.] [added: *10.15] | [removed: 15] | Employment agreement between Everest Reinsurance (Bermuda), Ltd. and Mark S. deSaram, dated September [removed: 13, 2012,] [added: 24, 2014,] incorporated herein by reference to Exhibit 10.1 to Everest Re Group, Ltd. Form 8-K filed on [removed: December 4, 2012] [added: September 29, 2014] |
| [removed: | *10.] [added: *10.12] | [removed: 16] | Chairmanship agreement between Everest Re Group, Ltd. and Joseph V. Taranto, dated June 19, 2013 and effective January 1, 2014, incorporated herein by reference to Exhibit 10.1 to Everest Re Group, Ltd. Form 8-K filed on June 24, [removed: 2013.] [added: 2013] |
| --- | --- | --- |
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| /S/ DOMINIC J. ADDESSO | | President and Chief Executive Officer | | March 1, 2017 | | |
| /S/ JOHN A. GRAF | | Director | | March 1, 2017 | | |
| John A. Graf | | | | | | |
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| 10.19 | | Standby Letter of Credit, dated November 9, 2015, between Everest International Reinsurance, Ltd. and Lloyds Bank, Plc. providing £175.0 million four year credit facility, incorporated herein by reference to Exhibit 10.23 to Everest Re Group, Ltd. Annual Report on Form 10-K- for the year ended December 31, 2015 filed on February 29, 2016 |
| --- | --- | --- |
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| 10.23 | | Credit Agreement, dated May 26, 2016, between Everest Re Group, Ltd., Everest Reinsurance (Bermuda), Ltd. and Everest International Reinsurance, Ltd., certain lenders party thereto and Wells Fargo Bank, N.A. as administrative agent, providing for an $800.0 million four year senior credit facility, incorporated herein by reference to Exhibit 10.31 to Everest Re Group, Ltd. Form 10-Q filed on August 9, 2016. This new agreement replaces the June 22, 2012 four year, $800.0 million senior credit facility |
| --- | --- | --- | --- |
| | | | |
| Dominic J. Addesso | | | | | | |
| --- | --- | --- | --- | --- | --- |
| | | | | | |
| | 4. | 4 | Amended and Restated Trust Agreement of Everest Re Capital Trust II, dated as of March 29, 2004, incorporated herein by reference to Exhibit 4.2 to the March 30, 2004 8-K |
| | 4. | 5 | Guarantee Agreement, dated as of March 29, 2004, between Holdings and JPMorgan Chase Bank, incorporated herein by reference to Exhibit 4.3 to the March 30, 2004 8-K |
| | 4. | 6 | Expense Agreement, dated as of March 29, 2004, between Holdings and Everest Re Capital Trust, incorporated herein by reference to Exhibit 4.4 to the March 30, 2004 8-K |
| | 4. | 8 | Fourth Supplemental Indenture relating to Holdings $400.0 million 4.868% Senior Notes due June 1, 2044, dated June 5, 2014, between Holdings and The Bank of New York Mellon, as Trustee, incorporated herein by reference to Exhibit 4.1 to Everest Reinsurance Holdings, Inc. Form 8-K filed on June 5, 2014 |
| | 10. | 10 | Credit Agreement, dated August 15, 2011, between Everest Reinsurance Holdings, Inc., the lenders named therein and Citibank, National Association, as administrative agent, providing for a $150.0 million three year revolving credit facility, filed herewith. This new agreement replaces the August 23, 2006 five year senior revolving credit facility |
February 29, 2016
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Premiums earned | | $ | 5,481,459 | | | $ | 5,169,135 | | | $ | 4,753,543 | |
| Total revenues | | | 5,837,889 | | | | 5,790,589 | | | | 5,640,836 | |
| TOTAL SHAREHOLDERS' EQUITY, END OF PERIOD | | $ | 7,608,585 | | | $ | 7,451,120 | | | $ | 6,968,276 | |
| Net cost of junior subordinated debt securities redemption | | | \- | | | | \- | | | | (329,897 | ) |
| Cash, beginning of period | | | 437,474 | | | | 611,382 | | | | 537,050 | |
Logan Re") and effective July 1, 2013, Mt.
Accordingly, the financial position and operating results for Mt.
Logan Re are consolidated with the Company and the non-controlling interests in Mt.
Logan Re's operating results and equity are presented as separate captions in the Company's financial statements.
Logan Re, Ltd. ("Mt.
McKinley"), Mt.
| Deferred acquisition costs | | $ | 1,202,036 | | | $ | 1,135,586 | | | $ | 977,558 | |
Holdings Ireland files an Irish income tax return.
The UK branch of Bermuda Re files a UK income tax return.
reporting and income tax bases of assets and liabilities, which arise because of differences between GAAP and income tax accounting rules.
The Company is still evaluating the impact of the implementation of this guidance but does not anticipate that it will have a significant impact on its financial statements.
Treatment of Insurance Contract Acquisition Costs.
In October 2010, the FASB issued authoritative guidance for the accounting for costs associated with acquiring or renewing insurance contracts.
The guidance identifies the incremental direct costs of contract acquisition and costs directly related to acquisition activities that should be capitalized.
The Company implemented this guidance as of January 1, 2012 and determined that $13,492 thousand of previously deferrable acquisition costs would be expensed, including $10,876 thousand and $2,616 thousand expensed in the years ended December 31, 2012 and 2013, respectively.
No additional expense will be incurred related to this guidance implementation in future periods.
| | | At December 31, 2014 | | | | | | | | | | | | | | | | | | |
| U.S. government agencies and corporations | | $ | 221,052 | | | $ | 10,290 | | | $ | (304 | ) | | $ | 231,038 | | | $ | \- | |
| Corporate securities | | | 4,626,002 | | | | 143,889 | | | | (62,906 | ) | | | 4,706,985 | | | | (6,910 | ) |
| Asset-backed securities | | | 340,761 | | | | 1,691 | | | | (1,230 | ) | | | 341,222 | | | | \- | |
| Commercial | | | 231,439 | | | | 10,675 | | | | (429 | ) | | | 241,685 | | | | \- | |
| Agency residential | | | 2,157,182 | | | | 37,555 | | | | (11,573 | ) | | | 2,183,164 | | | | \- | |
An excerpt. Shown here: 40 of 743 rewritten, 40 of 886 added and 40 of 239 removed. The counts are complete. For every sentence, read Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES in the FY2016 filing and the FY2015 filing.