Everest Group (EG) 10-K risk factor changes: FY2018 vs FY2017

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

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

| 2017 | | [removed: $] | 1,472.6 | |

[removed: However, during] [added: During] the past five calendar years, the reserve re-estimation process resulted in [added: a decrease to our pre-tax net income in 2018 and] an increase to our pre-tax [removed: net] income [added: for] all [added: other] years:

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

| 2017 | | [removed: $] | 293.4 | | increase |

At year-end [removed: 2017, 3.8%] [added: 2018, 2.6%] of our gross reserves were comprised of A&E reserves.

Our active subsidiaries [added: that have been rated] carry an [removed: "A+" ("Superior")] [added: “A+” (“Superior”)] rating from A.M. Best.

Everest Re, Bermuda Re, Ireland Re, Everest National, Everest [removed: Indemnity] [added: Indemnity, Everest Canada] and Ireland Insurance hold an [removed: "A+" ("Strong")] [added: “A+” (“Strong”)] rating from Standard & [removed: Poor's] [added: Poor’s] and Everest Assurance holds an [removed: "A" ("Strong")] [added: “A” (“Strong”)] rating from this same agency.

With the expansion of the capital markets into insurance linked financial instruments, we increased our use of capital market products for catastrophe [removed: reinsurance starting in 2014.][added: reinsurance.]

In addition, [added: we have increased] some of our quota share contracts with larger [removed: retrocessions were increased during 2014.][added: retrocessions.]

| | [added: 2018 |] 2017 | 2016 | 2015 | 2014 | [removed: 2013 |]

| Percentage of ceded written premiums to gross written premiums | [added: 12.5% |] 13.0% | 12.6% | 12.0% | 10.9% | [removed: 4.5% |]

The worldwide net premium written by the Top 40 global reinsurance groups for both life and non-life business was estimated to be [removed: $201] [added: $232.0] billion in [removed: 2016] [added: 2017] according to data compiled by Standard & [removed: Poor's.][added: Poor’s.]

The leaders in this market are [added: Munich Re,] Swiss Re, [removed: Munich] [added: Berkshire Hathaway] Re, Hannover Rueck SE, [removed: Berkshire Hathaway Re,] SCOR SE, [removed: RGA] and syndicates at [removed: Lloyd's] [added: Lloyd’s] of London.

Taranto (age [removed: 68)] [added: 69)] and existing key executive officers and to attract and retain additional qualified personnel in the future.

Addesso (age [removed: 64),] [added: 65),] Executive Vice President and Chief Financial Officer, Craig Howie (age [removed: 54),] [added: 55),] Executive Vice President and Chief Executive Officer Reinsurance Division, John P.

Doucette (age [removed: 52),] [added: 53),] Executive Vice President, General Counsel, Chief Compliance [removed: Officer] [added: Officer, Secretary] and [removed: Secretary,] [added: Managing Director and Chief Executive Officer of Bermuda Re,] Sanjoy Mukherjee (age [removed: 51)] [added: 52)] and Executive Vice President, President and Chief Executive Officer of the Everest Insurance® Division, Jonathan Zaffino (age [removed: 45).][added: 46).]

Currently, all our Bermuda-based professional employees who require work permits have been granted permits by the Bermuda [removed: government that expire at various times between February 2019 and August 2020.]

| (Dollars in millions) | | December 31, [removed: 2017] [added: 2018] | | | | % of Total | | |

| Non-agency residential | | | [removed: 0.4] [added: 10.2] | | | | [removed: 0.0] [added: 0.1] | % |

| Other asset-backed | | | [removed: 531.4] [added: 540.1] | | | | 2.9 | % |

| Total asset-backed | | | [removed: 2,976.7] [added: 2,673.3] | | | | [removed: 16.0] [added: 14.5] | % |

| Other fixed income | | | [removed: 11,780.1] [added: 12,552.0] | | | | [removed: 63.2] [added: 68.1] | % |

| Total fixed income, at market value | | | [removed: 14,756.8] [added: 15,225.3] | | | | [removed: 79.2] [added: 82.6] | % |

| Equity securities, at fair value | | | [removed: 963.6] [added: 716.6] | | | | [removed: 5.2] [added: 3.9] | % |

| Other invested assets | | | [removed: 1,631.9] [added: 1,591.7] | | | | [removed: 8.8] [added: 8.6] | % |

| Cash and short-term investments | | | [removed: 1,144.7] [added: 897.1] | | | | [removed: 6.1] [added: 4.9] | % |

| Total investments and cash | | $ | [removed: 18,626.5] [added: 18,433.1] | | | | 100.0 | % |

In [removed: 2017,] [added: 2018,] we wrote approximately [removed: 22.1%] [added: 23.6%] of our coverages in non-U.S. currencies; as of December 31, [removed: 2017,] [added: 2018,] we maintained approximately [removed: 13.6%] [added: 14.4%] of our investment portfolio in investments denominated in non-U.S. currencies.

During [removed: 2017, 2016] [added: 2018, 2017] and [removed: 2015,] [added: 2016,] the impact on our quarterly pre-tax net income from exchange rate fluctuations ranged from a loss of $43.2 million to a gain of [removed: $47.1] [added: $22.7] million.

For example, the [removed: United States Department of] [added: U.S.] Treasury 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.

The future impact of such initiatives or new initiatives from the [removed: incoming Presidential administration,] [added: current Government Administration,] if any, on our operation, net income (loss) or financial condition cannot be determined at this time.

Because any person who acquired control of Group would thereby acquire indirect control of its insurance company subsidiaries in the U.S., the insurance change of control laws of Delaware, [added: California and Georgia would apply to such a transaction.]

As of December 31, [removed: 2017,] [added: 2018,] Everest International owned 9,719,971 or [removed: 19.2%] [added: 19.3%] of the outstanding common shares of Group.

[removed: For purposes of the Delaware statute, an "interested shareholder" is generally] defined as a person who together with that [removed: person's] [added: person’s] affiliates and associates owns, or within the previous three years did own, 15% or more of a [removed: corporation's] [added: corporation’s] outstanding voting shares.

Furthermore, the court would give consideration to acts that are alleged to constitute [added: a fraud against the minority shareholders or where an act requires the approval of a greater percentage of Group’s shareholders than actually approved it.]

[removed: However,] these provisions may not limit liability for any breach of the duty of loyalty, acts or omissions not in good faith or that involve intentional misconduct or a knowing violation of law, the authorization of unlawful dividends, stock repurchases or stock redemptions, or any transaction from which a director derived an improper personal benefit.

In addition, [removed: it is anticipated that] new [added: proposed] regulations [removed: will be issued with respect to the BEAT which] may further limit the ability of the Company to execute alternative capital balancing transactions with unrelated parties.

However, if the [removed: Internal Revenue Service ("IRS")] [added: IRS] were to successfully assert that Bermuda Re was engaged in a [added: U.S.] trade or business, Bermuda Re would be required to pay U.S. corporate income tax on all of its income and possibly the U.S. branch profits tax.

| 2018 | | $ | 1,800.2 | |

| 2018 | | $ | 387.1 | | decrease |

On January 7, 2019, the Company announced that Mr. Addesso has informed the Group’s Board of Directors that he will retire at the end of his contract term on December 31, 2019.

As a result, the Board is undertaking a search as part of its succession planning process which will include a review of internal and external candidates for the position.

The other officer agreements referenced above contain automatic renewal provisions that provide for the contracts to continue indefinitely unless sooner terminated in accordance with the contract or as otherwise may be agreed.

government that expire at various times between January 2019 and April 2021.

| Commercial | | $ | 326.7 | | | | 1.8 | % |

| Agency residential | | | 1,796.3 | | | | 9.7 | % |

| Fixed maturities, at fair value | | | 2.3 | | | | 0.0 | % |

In June 2016, the United Kingdom approved a referendum to exit the European Union (commonly referred to as "Brexit") which resulted in volatility in global stock markets and currency exchange rates, and has increased political, economic and global market uncertainty.

The formal negotiation process for the United Kingdom to exit the European Union will determine the timing and terms of such an exit.

The Company has a Lloyd’s of London Syndicate and Bermuda Re has a branch operation in the United Kingdom.

The nature and extent of the impact of Brexit on regulation, interest rates, currency exchange rates and financial markets is still uncertain and may adversely affect our operations.

Changes in the method for determining LIBOR and the potential replacement of LIBOR may affect our cost of capital and net investment income.

On July 27, 2017, the UK Financial Conduct Authority announced that it intends to stop persuading or compelling banks to submit LIBOR rates after 2021, which is expected to result in these widely used reference rates no longer being available.

Potential changes to LIBOR, as well as uncertainty related to such potential changes and the establishment of any alternative reference rates, may adversely affect the market for LIBOR-based securities and could adversely impact the interest rate on our long term subordinate notes.

In addition, the discontinuance of LIBOR or changes or reforms to the determination or supervision of LIBOR may result in a sudden or prolonged increase or decrease in reported LIBOR, which could have an adverse impact on the market for LIBOR-based securities or the value of our investment portfolio.

The NAIC has adopted an Insurance Data Security Model Law, which, when adopted by the states will require insurers, insurance producers and other entities required to be licensed under state insurance laws to comply with certain requirements under state insurance laws, such as developing and maintaining a written information security program, conducting risk assessments and overseeing the data security practices of third-party vendors.

In addition, certain state insurance regulators are developing or have developed regulations that may impose regulatory requirements relating to cybersecurity on insurance and reinsurance companies (potentially including insurance and reinsurance companies that are not domiciled, but are licensed, in the relevant state).

For example, the New York State Department of Financial Services has adopted a regulation pertaining to cybersecurity for all banking and insurance entities under its jurisdiction, effective as of March 1, 2017, which applies to us.

We cannot predict the impact these laws and regulations will have on our business, financial condition or results of operations, but our insurance and reinsurance companies could incur additional costs resulting from compliance with such laws and regulations.

Bermuda introduced new economic substance legislation in December 2018, which came into force on January 1, 2019.

Based on the European Union guidelines, the legislation requires Bermuda companies to be locally managed and directed, to carry on their core income generating activities in Bermuda and to have an adequate level of local full time qualified employees, local accommodation and local expenditure.

There is no experience yet as to how the Bermuda authorities will interpret and enforce these new rules, and, accordingly, we are not able to predict their impact on our operations and net income.

For purposes of the Delaware statute, an “interested shareholder” is generally

However,

| 2013 | | | 194.0 | |

| 2013 | | | 18.2 | | increase |

| Commercial | | $ | 234.0 | | | | 1.2 | % |

| Agency residential | | | 2,210.9 | | | | 11.9 | % |

| Equity securities, at market value | | | 129.5 | | | | 0.7 | % |

California and Georgia would apply to such a transaction.

a fraud against the minority shareholders or where an act requires the approval of a greater percentage of Group's shareholders than actually approved it.

[removed: There was] [added: These catastrophe losses included] an unprecedented series of catastrophes in the third quarter of 2017 with Hurricanes Harvey, Irma and Maria, as well as a significant earthquake in Mexico City.

While the future impact on market conditions from these catastrophes cannot be determined at this time, there was some firming in the markets impacted by the 2016 catastrophes and as catastrophe losses increased in 2017, there is a growing industry consensus that there will be [removed: a general] [added: some] firming of [removed: the] (re)insurance [removed: markets resulting in rate increases, not only for catastrophe exposures, but also potentially] [added: rates] for [removed: most other lines of business.][added: the areas impacted by the catastrophes.]

| (Dollars in millions) | | [removed: 2017] [added: 2018] | | | | [removed: 2016] [added: 2017] | | | | [removed: 2015] [added: 2016] | | | | | [removed: 2017/2016] [added: 2018/2017] | | | | [removed: 2016/2015] [added: 2017/2016] | |

| Gross written premiums | | $ | [removed: 7,173.9] [added: 8,475.2] | | | $ | [removed: 6,033.9] [added: 7,173.9] | | | $ | [removed: 5,891.7] [added: 6,033.9] | | | | [removed: 18.9] [added: 18.1] | % | | | [removed: 2.4] [added: 18.9] | % |

| Net written premiums | | | [removed: 6,244.7] [added: 7,414.4] | | | | [removed: 5,270.9] [added: 6,244.7] | | | | [removed: 5,182.3] [added: 5,270.9] | | | | [removed: 18.5] [added: 18.7] | % | | | [removed: 1.7] [added: 18.5] | % |

| Premiums earned | | $ | [removed: 5,937.8] [added: 6,931.7] | | | $ | [removed: 5,320.5] [added: 5,937.8] | | | $ | [removed: 5,292.8] [added: 5,320.5] | | | | [removed: 11.6] [added: 16.7] | % | | | [removed: 0.5] [added: 11.6] | % |

| Net investment income | | | [removed: 542.9] [added: 581.2] | | | | [removed: 473.1] [added: 542.9] | | | | [removed: 473.5] [added: 473.1] | | | | [removed: 14.8] [added: 7.1] | % | | | [removed: \-0.1] [added: 14.8] | % |

| Net realized capital gains (losses) | | | [removed: 153.2] [added: (127.1] | [added: )] | | | [removed: (7.2] [added: 153.2] | [removed: )] | | | [removed: (184.1] [added: (7.2] | ) | | [removed: NM] | [added: \-183.0] | [added: %] | | [added: NM] | [removed: \-96.1] | [removed: %] |

| Net derivative gain (loss) | | | [removed: 9.6] [added: 0.5] | | | | [removed: 18.6] [added: 9.6] | | | | [removed: 6.3] [added: 18.6] | | | | [removed: \-48.6] [added: \-94.6] | % | | | [removed: 195.2] [added: \-48.6] | % |

| Other income (expense) | | | [removed: (35.4] [added: (9.1] | ) | | | [removed: (10.6] [added: (35.4] | ) | | | [removed: 88.3] [added: (10.6] | [added: )] | | | [removed: 233.2] [added: \-74.4] | % | | | [removed: \-112.0] [added: 233.2] | % |

| Total revenues | | | [removed: 6,608.1] [added: 7,377.2] | | | | [removed: 5,794.3] [added: 6,608.1] | | | | [removed: 5,676.8] [added: 5,794.3] | | | | [removed: 14.0] [added: 11.6] | % | | | [removed: 2.1] [added: 14.0] | % |

| Incurred losses and loss adjustment expenses | | | [removed: 4,522.6] [added: 5,651.4] | | | | [removed: 3,139.6] [added: 4,522.6] | | | | [removed: 3,064.7] [added: 3,139.6] | | | | [removed: 44.0] [added: 25.0] | % | | | [removed: 2.4] [added: 44.0] | % |

| Commission, brokerage, taxes and fees | | | [removed: 1,304.0] [added: 1,519.0] | | | | [removed: 1,188.7] [added: 1,304.0] | | | | [removed: 1,183.6] [added: 1,188.7] | | | | [removed: 9.7] [added: 16.5] | % | | | [removed: 0.4] [added: 9.7] | % |

| Other underwriting expenses | | | [removed: 318.8] [added: 371.5] | | | | [removed: 302.7] [added: 318.8] | | | | [removed: 257.1] [added: 302.7] | | | | [removed: 5.3] [added: 16.5] | % | | | [removed: 17.8] [added: 5.3] | % |

| Corporate expenses | | | [removed: 25.9] [added: 30.7] | | | | [removed: 27.2] [added: 25.9] | | | | [removed: 23.3] [added: 27.2] | | | | [removed: \-4.8] [added: 18.3] | % | | | [removed: 17.1] [added: \-4.8] | % |

| Interest, fees and bond issue cost amortization expense | | | [removed: 31.6] [added: 31.0] | | | | [removed: 36.2] [added: 31.6] | | | | 36.2 | | | | [removed: \-12.8] [added: \-1.8] | % | | | [removed: 0.1] [added: \-12.8] | % |

| Total claims and expenses | | | [removed: 6,202.9] [added: 7,603.7] | | | | [removed: 4,694.5] [added: 6,202.9] | | | | [removed: 4,564.9] [added: 4,694.5] | | | | [removed: 32.1] [added: 22.6] | % | | | [removed: 2.8] [added: 32.1] | % |

| INCOME (LOSS) BEFORE TAXES | | | [removed: 405.2] [added: (226.5] | [added: )] | | | [removed: 1,099.8] [added: 405.2] | | | | [removed: 1,111.9] [added: 1,099.8] | | | | [removed: \-63.2] [added: \-155.9] | % | | | [removed: \-1.1] [added: \-63.2] | % |

| Income tax expense (benefit) | | | [removed: (63.8] [added: (330.0] | ) | | | [removed: 103.5] [added: (63.8] | [added: )] | | | [removed: 134.0] [added: 103.5] | | | [added: NM] | [removed: \-161.6] | [removed: %] | | | [removed: \-22.8] [added: \-161.6] | % |

| NET INCOME (LOSS) | | $ | [removed: 469.0] [added: 103.6] | | | $ | [removed: 996.3] [added: 469.0] | | | $ | [removed: 977.9] [added: 996.3] | | | | [removed: \-52.9] [added: \-77.9] | % | | | [removed: 1.9] [added: \-52.9] | % |

| Loss ratio | | | [removed: 76.2] [added: 81.5] | % | | | [removed: 59.0] [added: 76.2] | % | | | [removed: 57.9] [added: 59.0] | % | | | [removed: 17.2] [added: 5.3] | | | | [removed: 1.1] [added: 17.2] | |

| Commission and brokerage ratio | | | [removed: 22.0] [added: 21.9] | % | | | [removed: 22.3] [added: 22.0] | % | | | [removed: 22.4] [added: 22.3] | % | | | [removed: (0.3] [added: (0.1] | ) | | | [removed: (0.1] [added: (0.3] | ) |

| Other underwriting expense ratio | | | [removed: 5.3] [added: 5.4] | % | | | [removed: 5.7] [added: 5.3] | % | | | [removed: 4.8] [added: 5.7] | % | | | [removed: (0.4] [added: 0.1] | [removed: )] | | | [removed: 0.9] [added: (0.4] | [added: )] |

| Combined ratio | | | [removed: 103.5] [added: 108.8] | % | | | [removed: 87.0] [added: 103.5] | % | | | [removed: 85.1] [added: 87.0] | % | | | [removed: 16.5] [added: 5.3] | | | | [removed: 1.9] [added: 16.5] | |

| (Dollars in millions, except per share amounts) | | | [removed: 2017] [added: 2018] | | | | [removed: 2016] [added: 2017] | | | | [removed: 2015] [added: 2016] | | | | [removed: 2017/2016] [added: 2018/2017] | | | | [removed: 2016/2015] [added: 2017/2016] | |

| Total investments and cash | | $ | [removed: 18,626.5] [added: 18,433.1] | | | $ | [removed: 17,483.1] [added: 18,626.5] | | | $ | [removed: 16,676.4] [added: 17,483.1] | | | | [removed: 6.5] [added: \-1.0] | % | | | [removed: 4.8] [added: 6.5] | % |

| Total assets | | | [removed: 23,591.8] [added: 24,794.0] | | | | [removed: 21,321.5] [added: 23,591.8] | | | | [removed: 20,545.4] [added: 21,321.5] | | | | [removed: 10.6] [added: 5.1] | % | | | [removed: 3.8] [added: 10.6] | % |

| Loss and loss adjustment expense reserves | | | [removed: 11,884.3] [added: 13,119.1] | | | | [removed: 10,312.3] [added: 11,884.3] | | | | [removed: 9,951.8] [added: 10,312.3] | | | | [removed: 15.2] [added: 10.4] | % | | | [removed: 3.6] [added: 15.2] | % |

| Total debt | | | [removed: 633.4] [added: 633.6] | | | | [removed: 633.2] [added: 633.4] | | | | [removed: 633.0] [added: 633.2] | | | | 0.0 | % | | | 0.0 | % |

| Total liabilities | | | [removed: 15,222.6] [added: 16,890.2] | | | | [removed: 13,246.1] [added: 15,222.6] | | | | [removed: 12,936.8] [added: 13,246.1] | | | | [removed: 14.9] [added: 11.0] | % | | | [removed: 2.4] [added: 14.9] | % |

| Shareholders' equity | | | [removed: 8,369.2] [added: 7,903.8] | | | | [removed: 8,075.4] [added: 8,369.2] | | | | [removed: 7,608.6] [added: 8,075.4] | | | | [removed: 3.6] [added: \-5.6] | % | | | [removed: 6.1] [added: 3.6] | % |

| Book value per share | | | [removed: 204.95] [added: 194.43] | | | | [removed: 197.45] [added: 204.95] | | | | [removed: 178.21] [added: 197.45] | | | | [removed: 3.8] [added: \-5.1] | % | | | [removed: 10.8] [added: 3.8] | % |

Gross written premiums increased by 18.9% to $7,173.9 million in 2017, compared to $6,033.9 million in 2016, reflecting [removed: a] [added: an] $867.8 million, or 20.4%, increase in our reinsurance business and a $272.2 million, or 15.2%, increase in our insurance business.

The rise in insurance premiums was [removed: primarily due] [added: related] to [removed: increases in many] [added: most] lines of business, including property, retail casualty, accident and health and business written through the [removed: Lloyd's] [added: Lloyd’s] Syndicate, partially offset by the impact of the sale of Heartland.

[removed: These changes are] [added: The change is] consistent with the [removed: changes] [added: change] in gross written premiums.

[removed: The changes are] [added: This change is] consistent with the [removed: changes] [added: change] in gross written premiums.

Net investment income [removed: decreased] [added: increased] by [removed: 0.1%] [added: 14.8%] to [removed: $473.1] [added: $542.9] million in [removed: 2016] [added: 2017] compared with investment income of [removed: $473.5] [added: $473.1] million in [removed: 2015.][added: 2016.]

Net pre-tax investment income, as a percentage of average invested assets, was [removed: 2.8%] [added: 3.2%] in [removed: 2016,] [added: 2018] compared to [removed: 2.9%] [added: 3.1%] in [removed: 2015.][added: 2017.]

The [removed: slight decline] [added: increases] in [added: both] income and yield [removed: was] [added: were] primarily the result of [removed: lower reinvestment rates for the fixed] [added: higher] income [removed: portfolios] [added: from our growing fixed maturity portfolio] and [removed: lower dividends] [added: higher income] from [removed: equity securities,] [added: our limited partnerships,] partially offset by [removed: higher] [added: lower dividend] income from our [removed: limited partnerships.][added: equity portfolio.]

Net realized capital [added: losses were $127.1 million in 2018, net realized capital] gains were $153.2 million in 2017 and net realized capital losses were $7.2 million [removed: and $184.1 million] in [removed: 2016 and 2015, respectively.][added: 2016.]

There were numerous natural catastrophes in 2018 with total industry losses estimated to be $90 billion.

The costliest event was the Camp Wildfire in California, the deadliest and most destructive California fire on record.

These 2018 catastrophe losses followed another record year of catastrophes in 2017 where total industry losses for the worldwide events were estimated at $140 billion.

Gross written premiums increased by 18.1% to $8,475.2 million in 2018, compared to $7,173.9 million in 2017, reflecting a $1,109.9 million, or 21.7%, increase in our reinsurance business and a $191.3 million, or 9.3%, increase in our insurance business.

The increase in reinsurance premiums was mainly due to increases in treaty property and treaty casualty writings, rise in mortgage business, growth in Latin American business, and increases in production from our U.K. branch and Ireland office.

Net written premiums increased by 18.7% to $7,414.4 million in 2018, compared to $6,244.7 million in 2017.

Premiums earned increased by 16.7% to $6,931.7 million in 2018, compared to $5,937.8 million in 2017.

This change is consistent with the change in gross written premiums.

Logan Re and changes in deferred gains related to any retroactive reinsurance transactions.

| 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Attritional | | $ | 4,025.4 | | | | 58.0 | % | | | $ | (174.1 | ) | | | \-2.5 | % | | | $ | 3,851.2 | | | | 55.5 | % | |

| Catastrophes | | | 1,239.0 | | | | 17.9 | % | | | | 561.2 | | | | 8.1 | % | | | | 1,800.2 | | | | 26.0 | % | |

| Total segment | | $ | 5,264.3 | | | | 75.9 | % | | | $ | 387.1 | | | | 5.6 | % | | | $ | 5,651.4 | | | | 81.5 | % | |

| Variance 2018/2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Attritional | | $ | 711.9 | | | | 2.2 | | pts | | $ | 89.3 | | | | 1.9 | | pts | | $ | 801.2 | | | | 4.1 | | pts |

| Catastrophes | | | (263.6 | ) | | | (7.4 | ) | pts | | | 591.2 | | | | 8.6 | | pts | | | 327.6 | | | | 1.2 | | pts |

| Total segment | | $ | 448.4 | | | | (5.2 | ) | pts | | $ | 680.5 | | | | 10.5 | | pts | | $ | 1,128.8 | | | | 5.3 | | pts |

The increase in loss estimates for Hurricanes Harvey, Irma and Maria was mostly driven by re-opened claims reported in the second quarter of 2018 and loss inflation from higher than expected loss adjustment expenses and in particular, their impact on aggregate covers.

These increases were partially offset by a decrease of $263.6 million in current year catastrophe losses.

The current year catastrophe losses of $1,239.0 million in 2018 related to Hurricane Michael ($462.0 million), Camp wildfire ($322.0 million), Woolsey wildfire ($154.0 million), Typhoon Jebi ($80.0 million), Hurricane Florence ($73.8 million), Cyclone Mekunu ($43.7 million), Typhoon Trami ($25.0 million), Australia Hailstorm ($25.0 million), other 2018 California wildfires ($24.6 million), Japan floods ($20.5 million) and the U.S. winter storms ($8.4 million).

The $263.4 million of favorable

The changes were primarily due to the impact of the increases in premiums earned and changes in the mix of business towards additional pro rata business.

The effective tax rate (“ETR”) is primarily affected by tax-exempt investment income, foreign tax credits and dividends.

In addition, the tax rate was lowered from 35% in 2017 to 21% in 2018 under the TCJA.

During 2018, the Company completed its accounting, including interpretation of the additional guidance issued by the IRS and U.S. Treasury, and recognized an income tax benefit of $28.4 million primarily related to the 2017 tax return to tax provision true-up recorded in 2018.

Our combined ratio increased by 5.3 points to 108.8% in 2018, compared to 103.5% in 2017.

The loss ratio component increased 5.3 points in 2018 over the same period last year mainly due to unfavorable development on prior years catastrophe losses.

The commission and brokerage ratio components remained flat at 21.9% in 2018 compared to 22.0% in 2017.

The other underwriting expense ratios also remained flat at 5.4% in 2018 compared to 5.3% in 2017.

Net investment income increased by 7.1% to $581.2 million in 2018 compared with investment income of $542.9 million in 2017.

The increase was primarily due to higher income from our growing fixed maturity portfolio and an increase in limited partnership income, partially offset by lower dividend income from our equity portfolio.

| Other Invested Assets | | | | | | | | | | | | | | | | | | | | |

| Gains | | | 1.8 | | | | \- | | | | \- | | | | 1.8 | | | | \- | |

| Losses | | | \- | | | | \- | | | | \- | | | | \- | | | | \- | |

| Total | | | 1.8 | | | | \- | | | | \- | | | | 1.8 | | | | \- | |

Net realized capital losses were $127.1 million in 2018, net realized capital gains were $153.2 million in 2017 and net realized capital losses were $7.2 million in 2016.

Gross written premiums increased by 16.3% to $3,014.3 million in 2018 from $2,593.0 million in 2017, primarily due to increases in treaty property and treaty casualty writings and growth in the mortgage business.

Net written premiums increased by 17.7% to $2,642.2 million in 2018 compared to $2,245.4 million in 2017, which is consistent with the change in gross written premiums.

Premiums earned increased by 15.9% to $2,529.0 million in 2018, compared to $2,181.2 million in 2017.

| 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | |

The total industry losses for all of these events could exceed $100 billion.

This is the second consecutive year with higher than average catastrophe losses.

There are industry reports that the catastrophe losses for 2016 reached their highest level in four years and the United States experienced the most loss events since 1980 and the highest total losses since 2012.

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.

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 decline in reinsurance premiums was mainly due to a decrease in treaty property business, a decline in international premiums related to quota share agreements and a negative impact of $74.0 million from the year over year movement in foreign exchange rates.

Net written premiums increased by 1.7% to $5,270.9 million in 2016, compared to $5,182.3 million in 2015.

Premiums earned increased by 0.5% to $5,320.5 million in 2016, compared to $5,292.8 million in 2015.

2015, respectively.

Logan Re for the corresponding periods.

The increase in expenses in 2017 mainly related to the impact on loss reserves from the strengthening of various currencies against the U.S. dollar.

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.

Although we have foreign currency investments to mitigate the impact of foreign exchange movements, the offsetting foreign exchange impacts on the investments is reflected through Other Comprehensive Income.

| 2015 | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| 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 | % | |

| Variance 2016/2015 | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Attritional | | $ | 4.6 | | | | (0.3 | ) | pts | | $ | (177.1 | ) | | | (3.3 | ) | pts | | $ | (172.5 | ) | | | (3.6 | ) | pts |

| Catastrophes | | | 300.7 | | | | 5.7 | | pts | | | (53.2 | ) | | | (1.0 | ) | pts | | | 247.4 | | | | 4.7 | | pts |

| Total segment | | $ | 305.3 | | | | 5.4 | | pts | | $ | (230.3 | ) | | | (4.3 | ) | pts | | $ | 74.9 | | | | 1.1 | | pts |

($23.2 million), the 2016 New Zealand earthquake ($18.9 million), the 2016 Taiwan earthquake ($15.1 million), the Tennessee wildfire ($14.7 million) and Hurricane Hermine ($13.5 million).

The $208.7 million of favorable prior years attritional loss development in 2016 was comprised of $382.4 million of favorable development on reinsurance business mainly related in the reinsurance segments, partially offset by $173.6 million in the insurance segment.

The favorable development in the reinsurance segments is primarily due to property and short-tail business in the U.S., as well as, property business in Canada, Latin America, the Middle East and Africa, partially offset by $53.9 million of adverse development on A&E.

Part of the favorable development in the reinsurance segments related to the 2015 loss from the explosion at the Chinese port of Tianjin.

In 2015, this loss was originally estimated to be $60.0 million.

At December 31, 2016, this loss was projected to be $16.7 million resulting in $43.3 million of favorable development.

The adverse development in the insurance segment is primarily attributable to run-off construction liability and umbrella program business.

The $86.6 million of prior years' catastrophe development mainly related to the 2015 Chile earthquake, the 2011 Japan earthquake and the 2015 U.S. storms.

The $87.2 million of current year catastrophe losses in 2015 related to the 2015 Chilean earthquake ($34.8 million), the Northern Chile storms ($19.5 million), the New South Wales storms ($16.7 million) and the 2015 U.S. storms ($16.2 million).

The increase in other underwriting expenses for 2016 compared to 2015 was mainly due to costs incurred related to the expansion of the insurance business.

The changes between years were mainly due to fluctuations in variable compensation costs.

The adjustments are not expected to be significant to the Company's results.

Our combined ratio increased by 1.9 points to 87.0% in 2016, compared to 85.1% in 2015.

The loss ratio component increased 1.1 points in 2016 over the same periods last year.

The change was mainly due to the increase in current year catastrophes in 2016 compared to 2015, partially offset by more favorable development on prior years attritional losses year over year.

The commission and brokerage ratio components were comparable at 22.3% in 2016 and 22.4% in 2015.

The other underwriting expense ratio components increased by 0.9 points in 2016 over the same periods last year due primarily to the increased focus on the expansion of the insurance business.

Net investment income decreased by 0.1% to $473.1 million in 2016 compared to $473.5 million in 2015, primarily due to a decline in income from our fixed maturities, reflective of lower reinvestment rates and a decline in dividend income from equity securities, partially offset by an increase in limited partnership income.

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

During the fourth quarter of 2017, the Company established a new Irish insurance subsidiary, Everest Insurance Ireland, designated activity company [removed: ("Ireland Insurance"),] [added: (“Ireland Insurance”),] which [removed: will write] [added: writes] insurance business mainly in the European markets.

During the third quarter of 2016, the Company established domestic subsidiaries, Everest Premier Insurance Company [removed: ("Everest Premier")] [added: (“Everest Premier”)] and Everest Denali Insurance Company [removed: ("Everest Denali"),] [added: (“Everest Denali”),] which [removed: will be] [added: are being] used in the continued expansion of the Insurance operations.

The Company had gross written premiums, in [removed: 2017,] [added: 2018,] of [removed: $7.2] [added: $8.5] billion with approximately [removed: 71%] [added: 73%] representing reinsurance and [removed: 29%] [added: 27%] representing insurance.

[removed: Shareholders'] [added: Shareholders’] equity at December 31, [removed: 2017] [added: 2018] was [removed: $8.4] [added: $7.9] billion.

[removed: Group's active operating subsidiaries are each rated A+ ("Superior") by] A.M. Best Company [removed: ("A.M. Best"),] [added: (“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 [removed: Re's] [added: Re’s] UK branch writes property and casualty reinsurance to the United Kingdom and European markets. At December 31, [removed: 2017,] [added: 2018,] Bermuda Re had [removed: shareholder's] [added: shareholder’s] equity of $3.1 billion. |

| · | Everest International Reinsurance, Ltd. [removed: ("Everest International"),] [added: (“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: 2017,] [added: 2018,] all of Everest [removed: International's] [added: International’s] business has been inter-affiliate quota share reinsurance assumed from Everest Re, the UK branch of Bermuda [added: Re, Ireland] Re and Ireland [removed: Re.] [added: Insurance.] 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 [removed: Group's new Lloyd's] [added: Group’s Lloyd’s] of London Syndicate corporate member. At December 31, [removed: 2017,] [added: 2018,] Everest International had [removed: shareholder's] [added: shareholder’s] equity of [removed: $2.8] [added: $2.7] 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, Puerto Rico and Guam 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: 2017,] [added: 2018,] Everest Re had statutory surplus of [removed: $3.4] [added: $3.7] billion. |

| · | Everest National Insurance Company [removed: ("Everest National"),] [added: (“Everest National”),] a Delaware insurance company and a direct subsidiary of Everest Re, is licensed in 50 [removed: states and] [added: states,] the District of Columbia and [added: Puerto Rico and] is authorized to write property and casualty insurance on an admitted basis in the jurisdictions in which it is licensed. The majority of Everest [removed: National's] [added: National’s] business is reinsured by its parent, Everest Re. |

| · | Everest Security Insurance Company [removed: ("Everest Security"),] [added: (“Everest Security”),] a Georgia insurance company and a direct subsidiary of Everest Re, writes property and casualty insurance on an admitted basis in Georgia and [removed: Alabama.] [added: Alabama and is approved as an eligible surplus lines insurer in Delaware.] The majority of Everest [removed: Security's] [added: Security’s] business is reinsured by its parent, Everest Re. |

| · | Everest Denali, a Delaware insurance company and a direct subsidiary of Everest Re, is licensed to write property and casualty insurance in [removed: 46] [added: 49] states and the District of Columbia. |

| · | Everest Premier, a Delaware insurance company and a direct subsidiary of Everest Re, is licensed to write property and casualty insurance in [removed: 46] [added: 49] states and the District of Columbia. |

Recent growth is coming from highly diversified areas including newly launched lines of business, as well [removed: as] [added: as,] product and geographic expansion in existing lines of business.

For the [removed: 2017] [added: 2018] calendar year, no single customer (ceding company or insured) generated more than 3% of the [removed: Company's] [added: Company’s] gross written premiums.

[removed: The] Company believes that a reduction of business from any one customer would not have a material adverse effect on its future financial condition or results of operations.

Approximately [removed: 63%, 29%] [added: 66%, 27%] and [removed: 8%] [added: 7%] of the [removed: Company's 2017] [added: Company’s 2018] gross written premiums were written in the broker reinsurance, insurance and direct reinsurance markets, respectively.

The [removed: Company's] [added: Company’s] ten largest brokers accounted for an aggregate of approximately [removed: 54%] [added: 52%] of gross written premiums in [removed: 2017.][added: 2018.]

In [removed: 2017,] [added: 2018,] Arrowhead General Insurance Agency accounted for approximately [removed: 4%] [added: 3%] of the [removed: Company's] [added: Company’s] gross written premium.

| | | Years Ended December 31, [added: 2018] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| (Dollars in millions) | | [removed: 2017] [added: 2018] | | | | | | | | [removed: 2016] [added: 2017] | | | | | | | | [removed: 2015] [added: 2016] | | | | | | | | [removed: 2014] [added: 2015] | | | | | | | | [removed: 2013] [added: 2014] | | | | | | |

| Pro [removed: Rata(1)] [added: Rata (1)] | | $ | [removed: 848.4] [added: 1,069.6] | | | | [removed: 11.8] [added: 12.6] | % | | $ | [removed: 495.2] [added: 848.4] | | | | [removed: 8.2] [added: 11.8] | % | | $ | [removed: 591.3] [added: 495.2] | | | | [removed: 10.0] [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] | % |

| Excess | | | [removed: 1,085.2] [added: 1,031.9] | | | | [removed: 15.1] [added: 12.2] | % | | | [removed: 1,054.2] [added: 1,085.2] | | | | [removed: 17.5] [added: 15.1] | % | | | [removed: 1,065.3] [added: 1,054.2] | | | | [removed: 18.1] [added: 17.5] | % | | | [removed: 887.6] [added: 1,065.3] | | | | [removed: 15.4] [added: 18.1] | % | | | [removed: 648.0] [added: 887.6] | | | | [removed: 12.4] [added: 15.4] | % |

| Pro [removed: Rata(1)] [added: Rata (1)] | | | [removed: 460.7] [added: 702.2] | | | | [removed: 6.4] [added: 8.3] | % | | | [removed: 378.2] [added: 460.7] | | | | [removed: 6.3] [added: 6.4] | % | | | [removed: 319.9] [added: 378.2] | | | | [removed: 5.4] [added: 6.3] | % | | | [removed: 382.4] [added: 319.9] | | | | [removed: 6.6] [added: 5.4] | % | | | [removed: 342.5] [added: 382.4] | | | | 6.6 | % |

| Excess | | | [removed: 198.7] [added: 210.6] | | | | [removed: 2.8] [added: 2.5] | % | | | [removed: 198.2] [added: 198.7] | | | | [removed: 3.3] [added: 2.8] | % | | | [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] | % |

| Total (2) | | | [removed: 2,593.0] [added: 3,014.3] | | | | [removed: 36.1] [added: 35.6] | % | | | [removed: 2,125.8] [added: 2,593.0] | | | | [removed: 35.2] [added: 36.1] | % | | | [removed: 2,147.9] [added: 2,125.8] | | | | [removed: 36.5] [added: 35.2] | % | | | [removed: 2,154.5] [added: 2,147.9] | | | | [removed: 37.4] [added: 36.5] | % | | | [removed: 1,826.0] [added: 2,154.5] | | | | [removed: 35.0] [added: 37.4] | % |

| Pro Rata (1) | | [added: $] | [removed: 577.5] [added: 679.8] | | | | [removed: 8.1] [added: 8.0] | % | | [added: $] | [removed: 671.9] [added: 577.5] | | | | [removed: 11.1] [added: 8.1] | % | | | [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] | % |

| Excess | | | [removed: 377.9] [added: 424.7] | | | | [removed: 5.3] [added: 5.0] | % | | | [removed: 337.4] [added: 377.9] | | | | [removed: 5.6] [added: 5.3] | % | | | [removed: 411.2] [added: 337.4] | | | | [removed: 7.0] [added: 5.6] | % | | | [removed: 488.1] [added: 411.2] | | | | [removed: 8.5] [added: 7.0] | % | | | [removed: 431.0] [added: 488.1] | | | | [removed: 8.3] [added: 8.5] | % |

| Pro Rata (1) | | | [removed: 236.4] [added: 281.0] | | | | 3.3 | % | | | [removed: 111.7] [added: 236.4] | | | | [removed: 1.9] [added: 3.3] | % | | | [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] | % |

| Excess | | | [removed: 125.0] [added: 158.4] | | | | [removed: 1.7] [added: 1.9] | % | | | [removed: 109.7] [added: 125.0] | | | | [removed: 1.8] [added: 1.7] | % | | | [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] | % |

| Total (2) | | | [removed: 1,316.7] [added: 1,543.9] | | | | [removed: 18.4] [added: 18.2] | % | | | [removed: 1,230.7] [added: 1,316.7] | | | | [removed: 20.4] [added: 18.4] | % | | | [removed: 1,334.2] [added: 1,230.7] | | | | [removed: 22.6] [added: 20.4] | % | | | [removed: 1,603.6] [added: 1,334.2] | | | | [removed: 27.8] [added: 22.6] | % | | | [removed: 1,350.2] [added: 1,603.6] | | | | [removed: 25.9] [added: 27.8] | % |

| Pro [removed: Rata(1)] [added: Rata (1)] | | [added: $] | [removed: 294.0] [added: 422.6] | | | | [removed: 4.1] [added: 5.0] | % | | [added: $] | [removed: 261.1] [added: 294.0] | | | | [removed: 4.3] [added: 4.1] | % | | | [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] | % |

| Excess | | | [removed: 222.0] [added: 229.4] | | | | [removed: 3.1] [added: 2.7] | % | | | [removed: 175.5] [added: 222.0] | | | | [removed: 2.9] [added: 3.1] | % | | | [removed: 165.3] [added: 175.5] | | | | [removed: 2.8] [added: 2.9] | % | | | [removed: 183.8] [added: 165.3] | | | | [removed: 3.2] [added: 2.8] | % | | | [removed: 162.6] [added: 183.8] | | | | [removed: 3.1] [added: 3.2] | % |

| Pro [removed: Rata(1)] [added: Rata (1)] | | | [removed: 407.7] [added: 773.7] | | | | [removed: 5.7] [added: 9.1] | % | | | [removed: 318.6] [added: 407.7] | | | | [removed: 5.3] [added: 5.7] | % | | | [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] | % |

| Excess | | | [removed: 281.2] [added: 240.6] | | | | [removed: 3.9] [added: 2.8] | % | | | [removed: 135.2] [added: 281.2] | | | | [removed: 2.2] [added: 3.9] | % | | | [removed: 165.2] [added: 135.2] | | | | [removed: 2.8] [added: 2.2] | % | | | [removed: 171.7] [added: 165.2] | | | | [removed: 3.0] [added: 2.8] | % | | | [removed: 154.2] [added: 171.7] | | | | 3.0 | % |

| Total (2) | | | [removed: 1,205.0] [added: 1,666.3] | | | | [removed: 16.8] [added: 19.7] | % | | | [removed: 890.4] [added: 1,205.0] | | | | [removed: 14.8] [added: 16.8] | % | | | [removed: 877.3] [added: 890.4] | | | | [removed: 14.9] [added: 14.8] | % | | | [removed: 786.4] [added: 877.3] | | | | [removed: 13.7] [added: 14.9] | % | | | [removed: 775.4] [added: 786.4] | | | | [removed: 14.9] [added: 13.7] | % |

| Pro [removed: Rata(1)] [added: Rata (1)] | | [added: $] | [removed: 1,719.9] [added: 2,172.0] | | | | [removed: 24.0] [added: 25.6] | % | | [added: $] | [removed: 1,428.2] [added: 1,719.9] | | | | [removed: 23.7] [added: 24.0] | % | | | [removed: 1,556.4] [added: 1,428.2] | | | | [removed: 26.4] [added: 23.7] | % | | | [removed: 1,764.1] [added: 1,556.4] | | | | [removed: 30.6] [added: 26.4] | % | | | [removed: 1,549.2] [added: 1,764.1] | | | | [removed: 29.7] [added: 30.6] | % |

| Excess | | | [removed: 1,685.1] [added: 1,686.0] | | | | [removed: 23.5] [added: 19.9] | % | | | [removed: 1,567.1] [added: 1,685.1] | | | | [removed: 26.0] [added: 23.5] | % | | | [removed: 1,641.8] [added: 1,567.1] | | | | [removed: 27.9] [added: 26.0] | % | | | [removed: 1,559.5] [added: 1,641.8] | | | | [removed: 27.1] [added: 27.9] | % | | | [removed: 1,241.6] [added: 1,559.5] | | | | [removed: 23.8] [added: 27.1] | % |

| Pro [removed: Rata(1)] [added: Rata (1)] | | | [removed: 1,104.8] [added: 1,756.9] | | | | [removed: 15.4] [added: 20.7] | % | | | [removed: 808.5] [added: 1,104.8] | | | | [removed: 13.4] [added: 15.4] | % | | | [removed: 714.3] [added: 808.5] | | | | [removed: 12.1] [added: 13.4] | % | | | [removed: 713.8] [added: 714.3] | | | | [removed: 12.4] [added: 12.1] | % | | | [removed: 690.7] [added: 713.8] | | | | [removed: 13.3] [added: 12.4] | % |

| Excess | | | [removed: 604.9] [added: 609.7] | | | | [removed: 8.4] [added: 7.2] | % | | | [removed: 443.1] [added: 604.9] | | | | [removed: 7.3] [added: 8.4] | % | | | [removed: 446.9] [added: 443.1] | | | | [removed: 7.6] [added: 7.3] | % | | | [removed: 507.0] [added: 446.9] | | | | [removed: 8.8] [added: 7.6] | % | | | [removed: 470.1] [added: 507.0] | | | | [removed: 9.0] [added: 8.8] | % |

| Total (2) | | | [removed: 5,114.7] [added: 6,224.6] | | | | [removed: 71.3] [added: 73.4] | % | | | [removed: 4,246.9] [added: 5,114.7] | | | | [removed: 70.4] [added: 71.3] | % | | | [removed: 4,359.4] [added: 4,246.9] | | | | [removed: 74.0] [added: 70.4] | % | | | [removed: 4,544.5] [added: 4,359.4] | | | | [removed: 78.9] [added: 74.0] | % | | | [removed: 3,951.6] [added: 4,544.5] | | | | [removed: 75.7] [added: 78.9] | % |

Group’s active operating subsidiaries, other than Ireland Insurance which is not yet rated, are each rated A+ (“Superior”) by

| Excess | | | 1,686.0 | | | | 19.9 | % | | | 1,685.1 | | | | 23.5 | % | | | 1,567.1 | | | | 26.0 | % | | | 1,641.8 | | | | 27.9 | % | | | 1,559.5 | | | | 27.1 | % |

| Excess | | | 609.7 | | | | 7.2 | % | | | 604.9 | | | | 8.4 | % | | | 443.1 | | | | 7.3 | % | | | 446.9 | | | | 7.6 | % | | | 507.0 | | | | 8.8 | % |

The Company writes assumed business with the segregated cells of Mt.

Logan Re Ltd. (Bermuda) (“Mt.

Middle East, which business is serviced from Everest Re’s Miami and New Jersey offices.

| Southeast U.S., Wind | | $ | 639 | | | $ | 888 | | | $ | 1,036 | | | $ | 1,315 | | | $ | 1,583 | | | $ | 2,444 | |

| California, Earthquake | | | 136 | | | | 470 | | | | 781 | | | | 1,132 | | | | 1,302 | | | | 1,571 | |

| Texas, Wind | | | 158 | | | | 467 | | | | 769 | | | | 1,077 | | | | 1,152 | | | | 1,236 | |

| Exceeding Probability | | | 5.0% | | | | 2.0% | | | | 1.0% | | | | 0.4% | | | | 0.2% | | | | 0.1% | |

| Southeast U.S., Wind | | $ | 440 | | | $ | 636 | | | $ | 759 | | | $ | 986 | | | $ | 1,198 | | | $ | 1,883 | |

| California, Earthquake | | | 111 | | | | 374 | | | | 626 | | | | 903 | | | | 1,045 | | | | 1,255 | |

| Texas, Wind | | | 121 | | | | 354 | | | | 578 | | | | 809 | | | | 871 | | | | 941 | |

The increase in current year incurred losses was primarily due to an increase in attritional losses due to a 16.7% increase in premiums earned.

The $407.0 million increase in reinsurance recoverables from December 31, 2018 to December 31, 2017 is primarily related to the additional catastrophe losses incurred in 2018 as well as a retroactive reinsurance transaction with a Mt.

Logan Re segregated account effective in the second quarter of 2018.

The increase in loss estimates for Hurricanes Harvey, Irma and Maria was mostly driven by re-opened claims, loss inflation from higher than expected loss adjustment expenses and in particular, their impact on aggregate covers.

This reserve increase was partially offset by $174.1 million of favorable development on prior years attritional losses which mainly related to U.S. and international property and casualty reinsurance business, as well as favorable development in the Insurance segment which largely related to workers’ compensation business.

| (Dollars in millions) | | 2018 | | | | 2017 | | | | 2016 | | |

The increase from 2017 to 2018 was primarily due to higher income from the growing fixed income portfolio and an increase in limited partnership income, partially offset by lower dividend income from our equity portfolio.

In 2018, the Company recorded $67.3 million of net losses from fair value re-measurements, $51.7 million of net realized capital losses from sales of investments and $8.1 million of other-than-temporary impairments.

| 2018 | | $ | 18,430.8 | | | $ | 581.2 | | | | 3.15 | % | | $ | (127.1 | ) | | $ | (250.9 | ) |

____________________________________________________

| | | At December 31, 2018 | | | | | | | | | | | | | | | | | | |

| U.S. government agencies and corporations | | $ | 2,629.5 | | | $ | 16.8 | | | $ | (15.2 | ) | | $ | 2,631.1 | | | $ | \- | |

| Corporate securities | | | 5,538.6 | | | | 48.5 | | | | (141.6 | ) | | | 5,445.5 | | | | 1.7 | |

| Asset-backed securities | | | 545.4 | | | | 0.2 | | | | (5.5 | ) | | | 540.1 | | | | \- | |

| Commercial | | | 329.9 | | | | 2.2 | | | | (5.4 | ) | | | 326.7 | | | | \- | |

| Agency residential | | | 1,832.8 | | | | 7.3 | | | | (43.8 | ) | | | 1,796.3 | | | | \- | |

| Foreign government securities | | | 1,335.3 | | | | 34.7 | | | | (55.8 | ) | | | 1,314.2 | | | | 0.1 | |

| Foreign corporate securities | | | 2,694.9 | | | | 64.0 | | | | (97.8 | ) | | | 2,661.1 | | | | 0.3 | |

| Total fixed maturity securities | | $ | 15,406.6 | | | $ | 186.6 | | | $ | (367.9 | ) | | $ | 15,225.3 | | | $ | 2.5 | |

| Equity securities | | $ | \- | | | $ | \- | | | $ | \- | | | $ | \- | | | $ | \- | |

| | | 2018 | | | | | | | | 2017 | | | | | | |

| AA | | | 2,345.0 | | | | 15.4 | % | | | 2,544.9 | | | | 17.2 | % |

| A | | | 3,082.2 | | | | 20.2 | % | | | 3,374.0 | | | | 22.9 | % |

| BB | | | 609.0 | | | | 4.0 | % | | | 640.0 | | | | 4.3 | % |

| B | | | 270.0 | | | | 1.8 | % | | | 333.3 | | | | 2.3 | % |

| | | 2018 | | | | | | | | 2017 | | | | | | |

There were numerous natural catastrophes in 2018, with total industry losses estimated to be $90 billion.

During the fourth quarter of 2015, the Company established new subsidiaries, Everest Preferred International Holdings, Ltd. ("Preferred International"), a Bermuda based company and Everest International Holdings (Bermuda), Ltd. ("International Holdings"), a Bermuda based company.

These new subsidiaries were part of a capital restructuring within the Company to support a planned increase in international business production, which includes directly supporting Group's Lloyd's of London Syndicate corporate member.

Effective July 13, 2015, the Company sold all of the outstanding shares of capital stock of a wholly-owned subsidiary entity, Mt.

McKinley Insurance Company ("Mt.

McKinley"), to Clearwater Insurance Company.

The operating results of Mt.

McKinley for the three and six months ended June 30, 2015, are included within the Company's financial statements.

Effective February 27, 2013, the Company established a new subsidiary, Mt.

Logan Reinsurance Limited.

("Mt.

Logan Re").

Mt.

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.

| --- | --- |

| · | 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. 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. |

business.

A recent model change did affect the level of the PML's at the higher return periods.

| Southeast U.S., Wind | | $ | 731 | | | $ | 1,100 | | | $ | 1,313 | | | $ | 1,745 | | | $ | 2,341 | | | $ | 3,053 | |

| California, Earthquake | | | 206 | | | | 575 | | | | 980 | | | | 1,445 | | | | 2,234 | | | | 3,191 | |

| Texas, Wind | | | 183 | | | | 650 | | | | 1,117 | | | | 1,558 | | | | 1,868 | | | | 2,188 | |

| Southeast U.S., Wind | | $ | 499 | | | $ | 781 | | | $ | 943 | | | $ | 1,295 | | | $ | 1,742 | | | $ | 2,308 | |

| California, Earthquake | | | 163 | | | | 453 | | | | 765 | | | | 1,121 | | | | 1,752 | | | | 2,520 | |

| Texas, Wind | | | 138 | | | | 498 | | | | 843 | | | | 1,180 | | | | 1,403 | | | | 1,647 | |

The $221.8 million increase in reinsurance recoverables from December 31, 2016 is primarily due to recoverables from these catastrophe losses.

The decrease for 2015 was attributable to favorable development in the reinsurance segments of $217.2 million related to treaty casualty and treaty property reserves, partially offset by $152.1 million of unfavorable development in the insurance segment primarily related to umbrella program and construction liability business.

In 2017, during its normal exposure analysis, the Company increased its net A&E reserves by $37.1 million, all of which related to its assumed reinsurance business.

The slight decrease from 2015 to 2016 was primarily due to a decline in income from fixed maturities, reflective of lower reinvestment rates, partially offset by an increase in income from limited partnerships.

In 2015, net realized capital losses were $184.1 million due to $102.2 million of other-than-temporary impairments on fixed maturity securities, $45.6 million of losses due to fair value re-measurements and $36.3 million of net realized capital losses from sales of fixed maturity and equity securities.

| 2013 | | | 16,405.7 | | | | 548.5 | | | | 3.34 | % | | | 300.2 | | | | (467.2 | ) |

| | | At December 31, 2016 | | | | | | | | | | | | | | | | | | |

| U.S. government agencies and corporations | | $ | 1,115.2 | | | $ | 20.4 | | | $ | (5.3 | ) | | $ | 1,130.3 | | | $ | \- | |

| Corporate securities | | | 5,059.4 | | | | 131.7 | | | | (35.8 | ) | | | 5,155.3 | | | | 7.9 | |

| Asset-backed securities | | | 488.8 | | | | 1.1 | | | | (1.3 | ) | | | 488.6 | | | | \- | |

| Commercial | | | 308.8 | | | | 2.0 | | | | (3.9 | ) | | | 306.9 | | | | \- | |

| Agency residential | | | 2,415.9 | | | | 17.5 | | | | (27.9 | ) | | | 2,405.5 | | | | \- | |

| Foreign government securities | | | 1,254.2 | | | | 61.2 | | | | (57.2 | ) | | | 1,258.2 | | | | 0.1 | |

| Foreign corporate securities | | | 2,565.7 | | | | 130.7 | | | | (64.4 | ) | | | 2,632.0 | | | | 1.2 | |

| Total fixed maturity securities | | $ | 13,932.6 | | | $ | 382.6 | | | $ | (207.8 | ) | | $ | 14,107.4 | | | $ | 9.2 | |

| Equity securities | | $ | 129.6 | | | $ | 2.3 | | | $ | (12.8 | ) | | $ | 119.1 | | | $ | \- | |

[added: _X_] Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the fiscal year ended December 31, [removed: 2017][added: 2018]

| 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: | | |]

Indicate by check mark whether the registrant has submitted electronically [removed: and posted on its corporate Web site, if any,] every Interactive Data File required to be submitted [removed: and posted] pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit [removed: and post] such files).

| [removed: (Do not check if smaller reporting company)] | | | Emerging growth company | |

The aggregate market value on June 30, [removed: 2017,] [added: 2018,] the last business day of the [removed: registrant's] [added: registrant’s] most recently completed second quarter, of the voting shares held by non-affiliates of the registrant was [removed: $10,454,792] [added: $9,417,452] thousand.

At February 1, [removed: 2018,] [added: 2019,] the number of shares outstanding of the [removed: registrant's] [added: registrant’s] common shares was [removed: 40,839,768.][added: 40,675,221.]

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 [removed: registrant's] [added: registrant’s] proxy statement for the 2018 Annual General Meeting of Shareholders, which will be filed with the Securities and Exchange Commission within 120 days of the close of the [removed: registrant's] [added: registrant’s] fiscal year ended December 31, [removed: 2017.][added: 2018.]

Risk Factors [removed: 27][added: 25]

Unresolved Staff Comments [removed: 39][added: 37]

Properties [removed: 39][added: 38]

Legal Proceedings [removed: 39][added: 38]

10-K 1 group10k2018.htm GROUP 10-K 2018

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

| | | | | | | | | | |

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

10-K 1 group10k2017.htm GROUP 10-K 2017

| __________________________________________________ | | | |

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

| __________________________________________________ |

| --- |

Market for [removed: Registrant's] [added: Registrant’s] Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities [removed: 39][added: 38]

Selected Financial Data [removed: 42][added: 41]

[removed: Management's] [added: Management’s] Discussion and Analysis of Financial Condition and Results of Operations [removed: 43][added: 42]

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure [removed: 79][added: 78]

Controls and Procedures [removed: 79][added: 78]

Directors, Executive Officers and Corporate Governance [removed: 80][added: 79]

Executive Compensation [removed: 80][added: 79]

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters [removed: 80][added: 79]

Certain Relationships and Related Transactions, and Director Independence [removed: 80][added: 79]

Bermuda [removed: Re's] [added: Re’s] corporate offices are located in approximately [removed: 5,800] [added: 12,300] total square feet of leased office space in Hamilton, Bermuda.

The [removed: Company's] [added: Company’s] other [removed: 26] [added: 25] locations occupy a total of approximately [removed: 208,850] [added: 223,650] square feet, all of which are leased.

| First Quarter | | $ | [removed: 239.15] [added: 262.67] | | | $ | [removed: 216.04] [added: 216.47] | | | $ | [removed: 197.43] [added: 239.15] | | | $ | [removed: 169.35] [added: 216.04] | |

| Second Quarter | | | [removed: 258.12] [added: 260.00] | | | | [removed: 230.63] [added: 224.72] | | | | [removed: 199.27] [added: 258.12] | | | | [removed: 169.21] [added: 230.63] | |

| Third Quarter | | | [removed: 271.12] [added: 236.32] | | | | [removed: 211.94] [added: 209.84] | | | | [removed: 195.15] [added: 271.12] | | | | [removed: 177.74] [added: 211.94] | |

| Fourth Quarter | | | [removed: 240.51] [added: 230.17] | | | | [removed: 210.36] [added: 205.03] | | | | [removed: 218.38] [added: 240.51] | | | | [removed: 184.24] [added: 210.36] | |

The number of record holders of common shares as of February 1, [removed: 2018] [added: 2019] was [removed: 372.][added: 443.]

The Company declared and paid its quarterly cash dividend of [removed: $1.15] [added: $1.25] per share for the first three quarters of [removed: 2016.][added: 2017.]

The Company declared and paid its quarterly cash dividend of [removed: $1.25] [added: $1.30] per share for the fourth quarter of [removed: 2016] [added: 2017] and for the first three quarters of [removed: 2017.][added: 2018.]

The Company declared and paid its quarterly cash dividend of [removed: $1.30] [added: $1.40] per share for the fourth quarter of [removed: 2017.][added: 2018.]

On February [removed: 21, 2018,] [added: 20, 2019,] the [removed: Company's] [added: Company’s] Board of Directors declared a dividend of [removed: $1.30] [added: $1.40] per share, payable on or before March [removed: 21, 2018] [added: 20, 2019] to shareholders of record on March [removed: 7, 2018.][added: 6, 2019.]

The following Performance Graph compares cumulative total shareholder returns on the Common Shares (assuming reinvestment of dividends) from December 31, [removed: 2012] [added: 2013] through December 31, [removed: 2017,] [added: 2018,] with the cumulative total return of the Standard & [removed: Poor's] [added: Poor’s] 500 Index and the Standard & [removed: Poor's] [added: Poor’s] Insurance (Property and Casualty) Index.

[removed: ][added: ]

[removed: |] *$100 invested on [removed: 12/31/12] [added: 12/31/13] in stock or index, including reinvestment of dividends. [removed: | | | | | | | |]

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

[removed: |] Copyright© [removed: 2018] [added: 2019] Standard & Poor's, a division of S&P Global. [removed: All rights reserved | | | | | | | |]

| | | 2018 | | | | | | | | 2017 | | | | | | |

| January 1 - 31, 2018 | | | 0 | | | $ | \- | | | | 0 | | | | 1,785,507 | |

| February 1 - 28, 2018 | | | 48,471 | | | $ | 242.0134 | | | | 0 | | | | 1,785,507 | |

| March 1 - 31, 2018 | | | 0 | | | $ | \- | | | | 0 | | | | 1,785,507 | |

| April 1 - 30, 2018 | | | 0 | | | $ | \- | | | | 0 | | | | 1,785,507 | |

| May 1 - 31, 2018 | | | 67,877 | | | $ | 224.1978 | | | | 67,000 | | | | 1,718,507 | |

| June 1 - 30, 2018 | | | 45,747 | | | $ | 224.8436 | | | | 45,747 | | | | 1,672,760 | |

| July 1 - 31, 2018 | | | 232 | | | $ | 234.6125 | | | | 0 | | | | 1,672,760 | |

| August 1 - 31, 2018 | | | 170,563 | | | $ | 217.2371 | | | | 170,338 | | | | 1,502,422 | |

| September 1 - 30, 2018 | | | 60,132 | | | $ | 219.8726 | | | | 59,094 | | | | 1,443,328 | |

| October 1 - 31, 2018 | | | 0 | | | $ | \- | | | | 0 | | | | 1,443,328 | |

| November 1 - 30, 2018 | | | 493 | | | $ | 217.5254 | | | | 0 | | | | 1,443,328 | |

| December 1 - 31, 2018 | | | 0 | | | $ | \- | | | | 0 | | | | 1,443,328 | |

| Total | | | 393,515 | | | $ | \- | | | | 342,179 | | | | 1,443,328 | |

| | | | | | | | | | | 12/13 | | 12/14 | | 12/15 | | 12/16 | | 12/17 | | 12/18 |

| Everest Re Group, Ltd. | | | | | | | | | | 100.00 | | 111.44 | | 122.52 | | 148.36 | | 154.94 | | 156.07 |

| S&P 500 | | | | | | | | | | 100.00 | | 113.69 | | 115.26 | | 129.05 | | 157.22 | | 150.33 |

| S&P Property & Casualty Insurance | | | | | | | | | | 100.00 | | 115.74 | | 126.77 | | 146.68 | | 179.52 | | 171.10 |

All rights reserved.

| | | 2017 | | | | | | | | 2016 | | | | | | |

| January 1 - 31, 2017 | | | 394 | | | $ | 219.8275 | | | | 0 | | | | 2,022,000 | |

| February 1 - 28, 2017 | | | 47,002 | | | $ | 234.5245 | | | | 0 | | | | 2,022,000 | |

| March 1 - 31, 2017 | | | 0 | | | $ | \- | | | | 0 | | | | 2,022,000 | |

| April 1 - 30, 2017 | | | 0 | | | $ | \- | | | | 0 | | | | 2,022,000 | |

| May 1 - 31, 2017 | | | 1,608 | | | $ | 244.0422 | | | | 0 | | | | 2,022,000 | |

| June 1 - 30, 2017 | | | 0 | | | $ | \- | | | | 0 | | | | 2,022,000 | |

| July 1 - 31, 2017 | | | 0 | | | $ | \- | | | | 0 | | | | 2,022,000 | |

| August 1 - 31, 2017 | | | 0 | | | $ | \- | | | | 0 | | | | 2,022,000 | |

| September 1 - 30, 2017 | | | 1,128 | | | $ | 228.1993 | | | | 0 | | | | 2,022,000 | |

| October 1 - 31, 2017 | | | 0 | | | $ | \- | | | | 0 | | | | 2,022,000 | |

| November 1 - 30, 2017 | | | 577 | | | $ | 223.8198 | | | | 0 | | | | 2,022,000 | |

| December 1 - 31, 2017 | | | 236,493 | | | $ | 211.4226 | | | | 236,493 | | | | 1,785,507 | |

| Total | | | 287,202 | | | $ | \- | | | | 236,493 | | | | 1,785,507 | |

| | | | | | | | | | | 12/12 | | 12/13 | | 12/14 | | 12/15 | | 12/16 | | 12/17 |

| Everest Re Group, Ltd. | | | | | | | | | | 100.00 | | 144.03 | | 160.50 | | 176.46 | | 213.68 | | 223.15 |

| S&P 500 | | | | | | | | | | 100.00 | | 132.39 | | 150.51 | | 152.59 | | 170.84 | | 208.14 |

| S&P Property & Casualty Insurance | | | | | | | | | | 100.00 | | 138.29 | | 160.06 | | 175.32 | | 202.85 | | 248.26 |

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

The following selected consolidated GAAP financial data of the Company as of and for the years ended December 31, [added: 2018,] 2017, 2016, [removed: 2015, 2014] [added: 2015] and [removed: 2013,] [added: 2014,] were derived from the audited consolidated financial statements of the Company.

| (Dollars in millions, except per share amounts) | | [removed: 2017] [added: 2018] | | | | [removed: 2016] [added: 2017] | | | | [removed: 2015] [added: 2016] | | | | [removed: 2014] [added: 2015] | | | | [removed: 2013] [added: 2014] | | |

| Gross written premiums | | $ | [removed: 7,173.9] [added: 8,475.2] | | | $ | [removed: 6,033.9] [added: 7,173.9] | | | $ | [removed: 5,891.7] [added: 6,033.9] | | | $ | [removed: 5,762.9] [added: 5,891.7] | | | $ | [removed: 5,220.4] [added: 5,762.9] | |

| Net written premiums | | | [removed: 6,244.7] [added: 7,414.4] | | | | [removed: 5,270.9] [added: 6,244.7] | | | | [removed: 5,182.3] [added: 5,270.9] | | | | [removed: 5,132.4] [added: 5,182.3] | | | | [removed: 4,986.4] [added: 5,132.4] | |

| Premiums earned | | | [removed: 5,937.8] [added: 6,931.7] | | | | [removed: 5,320.5] [added: 5,937.8] | | | | [removed: 5,292.8] [added: 5,320.5] | | | | [removed: 5,043.7] [added: 5,292.8] | | | | [removed: 4,736.3] [added: 5,043.7] | |

| Net investment income | | | [removed: 542.9] [added: 581.2] | | | | [removed: 473.1] [added: 542.9] | | | | [removed: 473.5] [added: 473.1] | | | | [removed: 530.5] [added: 473.5] | | | | [removed: 548.5] [added: 530.5] | |

| Net realized capital gains (losses) | | | [added: (127.1 | ) | | |] 153.2 | | | | (7.2 | ) | | | (184.1 | ) | | | 84.0 | | [removed: | | 300.2 | |]

| expenses (including catastrophes) | | | [removed: 4,522.6] [added: 5,651.4] | | | | [removed: 3,139.6] [added: 4,522.6] | | | | [removed: 3,064.7] [added: 3,139.6] | | | | [removed: 2,875.9] [added: 3,064.7] | | | | [removed: 2,795.9] [added: 2,875.9] | |

| Net catastrophe losses (1) | | | [removed: 1,339.1] [added: 1,669.8] | | | | [removed: 286.0] [added: 1,339.1] | | | | [removed: 50.7] [added: 286.0] | | | | [removed: 50.1] [added: 50.7] | | | | [removed: 176.6] [added: 50.1] | |

| Commission, brokerage, taxes and fees | | | [removed: 1,304.0] [added: 1,519.0] | | | | [removed: 1,188.7] [added: 1,304.0] | | | | [removed: 1,183.6] [added: 1,188.7] | | | | [removed: 1,121.1] [added: 1,183.6] | | | | [removed: 975.6] [added: 1,121.1] | |

| Other underwriting expenses | | | [removed: 318.8] [added: 371.5] | | | | [removed: 302.7] [added: 318.8] | | | | [removed: 257.1] [added: 302.7] | | | | [removed: 233.1] [added: 257.1] | | | | [removed: 234.1] [added: 233.1] | |

| Corporate expenses | | | [removed: 25.9] [added: 30.7] | | | | [removed: 27.2] [added: 25.9] | | | | [removed: 23.3] [added: 27.2] | | | | [removed: 23.4] [added: 23.3] | | | | [removed: 25.8] [added: 23.4] | |

| amortization expense | | | [removed: 31.6] [added: 31.0] | | | | [removed: 36.2] [added: 31.6] | | | | 36.2 | | | | [removed: 38.5] [added: 36.2] | | | | [removed: 46.1] [added: 38.5] | |

| Income (loss) before taxes | | | [removed: 405.2] [added: (226.5] | [added: )] | | | [removed: 1,099.8] [added: 405.2] | | | | [removed: 1,111.9] [added: 1,099.8] | | | | [removed: 1,386.8] [added: 1,111.9] | | | | [removed: 1,549.1] [added: 1,386.8] | |

| Income tax expense (benefit) | | | [removed: (63.8] [added: (330.0] | ) | | | [removed: 103.5] [added: (63.8] | [added: )] | | | [removed: 134.0] [added: 103.5] | | | | [removed: 187.7] [added: 134.0] | | | | [removed: 289.7] [added: 187.7] | |

| Net income (loss) (2) | | | [removed: 469.0] [added: 103.6] | | | | [removed: 996.3] [added: 469.0] | | | | [removed: 977.9] [added: 996.3] | | | | [removed: 1,199.2] [added: 977.9] | | | | [removed: 1,259.4] [added: 1,199.2] | |

| Basic (3) | | $ | [removed: 11.43] [added: 2.54] | | | $ | [removed: 23.85] [added: 11.43] | | | $ | [removed: 22.29] [added: 23.85] | | | $ | [removed: 26.16] [added: 22.29] | | | $ | [removed: 25.67] [added: 26.16] | |

| Diluted (4) | | $ | [removed: 11.36] [added: 2.53] | | | $ | [removed: 23.68] [added: 11.36] | | | $ | [removed: 22.10] [added: 23.68] | | | $ | [removed: 25.91] [added: 22.10] | | | $ | [removed: 25.44] [added: 25.91] | |

| Dividends declared | | $ | [removed: 5.05] [added: 5.30] | | | $ | [removed: 4.70] [added: 5.05] | | | $ | [removed: 4.00] [added: 4.70] | | | $ | [removed: 3.20] [added: 4.00] | | | $ | [removed: 2.19] [added: 3.20] | |

| Loss ratio | | | [removed: 76.2] [added: 81.5] | % | | | [removed: 59.0] [added: 76.2] | % | | | [removed: 57.9] [added: 59.0] | % | | | [removed: 57.0] [added: 57.9] | % | | | [removed: 59.0] [added: 57.0] | % |

| Other underwriting expense ratio | | | 27.3 | % | | | [removed: 28.0] [added: 27.3] | % | | | [removed: 27.2] [added: 28.0] | % | | | [removed: 26.8] [added: 27.2] | % | | | [removed: 25.6] [added: 26.8] | % |

| Combined ratio (2) | | | [removed: 103.5] [added: 108.8] | % | | | [removed: 87.0] [added: 103.5] | % | | | [removed: 85.1] [added: 87.0] | % | | | [removed: 83.8] [added: 85.1] | % | | | [removed: 84.6] [added: 83.8] | % |

| Total investments and cash | | $ | [removed: 18,626.5] [added: 18,433.1] | | | $ | [removed: 17,483.1] [added: 18,626.5] | | | $ | [removed: 16,676.4] [added: 17,483.1] | | | $ | [removed: 16,880.8] [added: 16,676.4] | | | $ | [removed: 16,462.8] [added: 16,880.8] | |

| Total assets | | | [removed: 23,591.8] [added: 24,794.0] | | | | [removed: 21,321.5] [added: 23,591.8] | | | | [removed: 20,545.4] [added: 21,321.5] | | | | [removed: 20,339.9] [added: 20,545.4] | | | | [removed: 19,712.3] [added: 20,339.9] | |

| Loss and LAE reserves | | | [removed: 11,884.3] [added: 13,119.1] | | | | [removed: 10,312.3] [added: 11,884.3] | | | | [removed: 9,951.8] [added: 10,312.3] | | | | [removed: 9,720.8] [added: 9,951.8] | | | | [removed: 9,673.2] [added: 9,720.8] | |