The tables below display the aggregate market value and gross unrealized depreciation of fixed maturity securities, by security type and contractual maturity, in each case subdivided according to length of time that individual securities had been in a continuous unrealized loss position for the periods indicated:

	Duration of Unrealized Loss at March 31, 2020 By Security Type
	Less than 12 months				Greater than 12 months				Total
			Gross				Gross				Gross
	Market		Unrealized		Market		Unrealized		Market		Unrealized
(Dollars in thousands)	Value		Depreciation		Value		Depreciation		Value		Depreciation
Fixed maturity securities - available for sale
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	-	$	-	$	9,003	$	(835)	$	9,003	$	(835)
Obligations of U.S. states and political subdivisions		78,392		(4,745)		3,309		(249)		81,701		(4,994)
Corporate securities		1,006,791		(69,967)		117,380		(58,091)		1,124,171		(128,058)
Asset-backed securities		603,807		(68,849)		107,550		(7,825)		711,357		(76,674)
Mortgage-backed securities
Commercial		13,302		(491)		14,094		(284)		27,396		(775)
Agency residential		20,787		(761)		1,872		(21)		22,659		(782)
Non-agency residential		553		(12)		517		(1)		1,070		(13)
Foreign government securities		144,468		(3,758)		38,825		(8,202)		183,293		(11,960)
Foreign corporate securities		207,389		(11,354)		61,954		(8,322)		269,343		(19,676)
Total fixed maturity securities	$	2,075,489	$	(159,937)	$	354,504	$	(83,830)	$	2,429,993	$	(243,767)

	Duration of Unrealized Loss at March 31, 2020 By Maturity
	Less than 12 months				Greater than 12 months				Total
			Gross				Gross				Gross
	Market		Unrealized		Market		Unrealized		Market		Unrealized
(Dollars in thousands)	Value		Depreciation		Value		Depreciation		Value		Depreciation
Fixed maturity securities
Due in one year or less	$	102,257	$	(3,625)	$	56,571	$	(7,462)	$	158,828	$	(11,087)
Due in one year through five years		692,049		(35,783)		130,311		(16,942)		822,360		(52,725)
Due in five years through ten years		491,144		(38,231)		8,969		(1,254)		500,113		(39,485)
Due after ten years		151,590		(12,185)		34,620		(50,041)		186,210		(62,226)
Asset-backed securities		603,807		(68,849)		107,550		(7,825)		711,357		(76,674)
Mortgage-backed securities		34,642		(1,264)		16,483		(306)		51,125		(1,570)
Total fixed maturity securities	$	2,075,489	$	(159,937)	$	354,504	$	(83,830)	$	2,429,993	$	(243,767)

Duration of Unrealized Loss at June 30, 2019 By Security Type
Less than 12 months Greater than 12 months Total
Gross Gross Gross
Unrealized Unrealized Unrealized
(Dollars in thousands) Market Value Depreciation Market Value Depreciation Market Value Depreciation
Fixed maturity securities - available for sale

U.S. Treasury securities and obligations of
U.S. government agencies and corporations
$
37,960

$
(12
)

$
304,142

$
(2,031
)

$
342,102

$
(2,043
)
Obligations of U.S. states and political subdivisions
1,991

(48
)

9,840

(300
)

11,831

(348
)
Corporate securities
191,106

(8,266
)

307,906

(14,790
)

499,012

(23,056
)
Asset-backed securities
295,890

(833
)

52,686

(102
)

348,576

(935
)
Mortgage-backed securities
Commercial
1,578

(2
)

17,342

(70
)

18,920

(72
)
Agency residential
13,049

(32
)

38,667

(355
)

51,716

(387
)
Non-agency residential
1,435
- - -
1,435
-
Foreign government securities
16,603

(124
)

138,472

(6,393
)

155,075

(6,517
)
Foreign corporate securities
27,650

(350
)

225,895

(14,563
)

253,545

(14,913
)
Total fixed maturity securities

$
587,262

$
(9,667
)

$
1,094,950

$
(38,604
)

$
1,682,212

$
(48,271
)

Duration of Unrealized Loss at June 30, 2019 By Maturity
Less than 12 months Greater than 12 months Total
Gross Gross Gross
Unrealized Unrealized Unrealized
(Dollars in thousands) Market Value Depreciation Market Value Depreciation Market Value Depreciation
Fixed maturity securities

Due in one year or less
$
37,823

$
(624
)

$
188,033

$
(9,133
)

$
225,856

$
(9,757
)
Due in one year through five years
115,774

(960
)

593,416

(15,494
)

709,190

(16,454
)
Due in five years through ten years
101,238

(6,438
)

95,780

(3,859
)

197,018

(10,297
)
Due after ten years
20,475

(778
)

109,026

(9,591
)

129,501

(10,369
)
Asset-backed securities

295,890

(833
)

52,686

(102
)

348,576

(935
)
Mortgage-backed securities

16,062

(34
)

56,009

(425
)

72,071

(459
)
Total fixed maturity securities

$
587,262

$
(9,667
)

$
1,094,950

$
(38,604
)

$
1,682,212

$
(48,271
)

The aggregate market value and gross unrealized losses related to investments in an unrealized loss position at ~~June 30, 2019~~March 31, 2020 were ~~$1,682,212~~$2,429,993 thousand and ~~$48,271~~$243,767 thousand, respectively. The market value of securities for the single issuer whose securities comprised the largest unrealized loss position at ~~June 30, 2019,~~March 31, 2020, did not exceed ~~0.5%~~0.1 % of the overall market value of the Company’s fixed maturity securities. In addition, as indicated on the above table, there was no significant concentration of unrealized losses in any one market sector. The ~~$9,667~~$159,937 thousand of unrealized losses related to fixed maturity securities that have been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate securities and asset backed securities. Of these unrealized losses, ~~$1,291~~$123,786 thousand were related to securities that were rated investment grade by at least one nationally recognized statistical rating agency. The ~~$38,604~~$83,830 thousand of unrealized losses related to fixed maturity securities in an unrealized loss position for more than one year related primarily to domestic and foreign corporate securities, foreign government securities and ~~U.S. government agencies.~~asset backed securities. Of these unrealized losses ~~$26,147~~$26,723 thousand were related to securities that were rated investment grade by at least one nationally recognized statistical rating agency.

There was no gross unrealized depreciation for mortgage-backed securities related to sub-prime and alt-A loans. In all instances, there were no projected cash flow shortfalls to recover the full book value of the investments and the related interest obligations. The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments.

The Company, given the size of its investment portfolio and capital position, does not have the intent to sell these securities; and it is more likely than not that the Company will not have to sell the security before recovery of its cost basis. In addition, all securities currently in an unrealized loss position are current with respect to principal and interest payments.

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

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

Duration of Unrealized Loss at December 31, 2018 By Security Type
Less than 12 months Greater than 12 months Total
Gross Gross Gross
Unrealized Unrealized Unrealized
(Dollars in thousands) Market Value Depreciation Market Value Depreciation Market Value Depreciation
Fixed maturity securities - available for sale

U.S. Treasury securities and obligations of
U.S. government agencies and corporations
$
245,357

$
(6,099
)

$
373,377

$
(4,989
)

$
618,734

$
(11,088
)
Obligations of U.S. states and political subdivisions
107,183

(2,829
)

1,475

(10
)

108,658

(2,839
)
Corporate securities
1,390,942

(57,043
)

194,770

(12,872
)

1,585,712

(69,915
)
Asset-backed securities
127,052

(1,408
)

47,551

(631
)

174,603

(2,039
)
Mortgage-backed securities
Commercial
51,357

(695
)

2,259

(28
)

53,616

(723
)
Agency residential
44,071

(1,221
)

21,889

(488
)

65,960

(1,709
)
Non-agency residential
3,093

(4
)
- -
3,093

(4
)
Foreign government securities
192,510

(10,690
)

101,137

(663
)

293,647

(11,353
)
Foreign corporate securities
501,532

(25,821
)

65,279

(5,111
)

566,811

(30,932
)
Total fixed maturity securities

$
2,663,097

$
(105,810
)

$
807,737

$
(24,792
)

$
3,470,834

$
(130,602
)

Duration of Unrealized Loss at December 31, 2018 By Maturity
Less than 12 months Greater than 12 months Total
Gross Gross Gross
Unrealized Unrealized Unrealized
(Dollars in thousands) Market Value Depreciation Market Value Depreciation Market Value Depreciation
Fixed maturity securities

Due in one year or less
$
165,545

$
(7,618
)

$
118,322

$
(1,164
)

$
283,867

$
(8,782
)
Due in one year through five years
1,423,431

(44,924
)

525,554

(9,530
)

1,948,985

(54,454
)
Due in five years through ten years
624,875

(35,360
)

42,902

(2,773
)

667,777

(38,133
)
Due after ten years
223,673

(14,580
)

49,260

(10,178
)

272,933

(24,758
)
Asset-backed securities

127,052

(1,408
)

47,551

(631
)

174,603

(2,039
)
Mortgage-backed securities

98,521

(1,920
)

24,148

(516
)

122,669

(2,436
)
Total fixed maturity securities

$
2,663,097

$
(105,810
)

$
807,737

$
(24,792
)

$
3,470,834

$
(130,602
)

The aggregate market value and gross unrealized losses related to investments in an unrealized loss position at December 31, ~~2018~~2019 were ~~$3,470,834~~$1,540,376 thousand and ~~$130,602~~$45,484 thousand, respectively. The market value of securities for the single issuer ~~(the United States government)~~ whose securities comprised the largest unrealized loss position at December 31, ~~2018,~~2019, did not exceed ~~9.0%~~0.2 % of the overall market value of the Company’s ~~fixed maturity securities. The market value of securities for the issuer with the second largest unrealized loss comprised less than 0.8% of the company’s~~ fixed maturity securities. In addition, as indicated on the above table, there was no significant concentration of unrealized losses in any one market sector. The ~~$105,810~~$8,539 thousand of unrealized losses related to fixed maturity securities that have

been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate ~~securities, foreign government securities and U.S. government agencies and corporations.~~securities. Of these unrealized losses, ~~$68,010~~$5,645 thousand were related to securities that were rated investment grade by at least one nationally recognized statistical rating agency. The ~~$24,792~~$36,945 thousand of unrealized losses related to fixed maturity securities in an unrealized loss position for more than one year related primarily to domestic and foreign corporate securities and ~~U.S.~~foreign government ~~agencies.~~securities. Of these unrealized losses ~~$14,802~~$16,976 thousand were related to securities that were rated investment grade by at least one nationally recognized statistical rating agency. There was no gross unrealized depreciation for mortgage-backed securities related to sub-prime and alt-A loans. In all instances, there were no projected cash flow shortfalls to recover the full book value of the investments and the related interest obligations. The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments.

The components of net investment income are presented in the tables below for the periods indicated:

	Three Months Ended
	March 31,
(Dollars in thousands)	2020		2019
Fixed maturities	$	74,088	$	67,054
Equity securities		1,592		1,431
Short-term investments and cash		1,570		2,736
Other invested assets
Limited partnerships		6,996		8,055
Dividends from preferred shares of affiliate		7,758		7,758
Other		(13,072)		2,980
Gross investment income before adjustments		78,932		90,014
Funds held interest income (expense)		3,257		2,881
Interest income from Parent		1,282		-
Gross investment income		83,471		92,895
Investment expenses		(9,270)		(8,361)
Net investment income	$	74,201	$	84,534

(Some amounts may not reconcile due to rounding.)

Three Months Ended Six Months Ended
June 30, June 30,
(Dollars in thousands) 2019 2018 2019 2018
Fixed maturities

$
65,374

$
48,523

$
132,428

$
90,942

Equity securities

2,319

3,627

3,750

8,030

Short-term investments and cash

3,169

1,302

5,905

2,230

Other invested assets

Limited partnerships
15,116

14,168

23,171

28,640

Dividends from preferred shares of affiliate
7,758

7,758

15,516

15,516

Other
3,299

1,460

6,279

4,655

Gross investment income before adjustments
97,035

76,838

187,049

150,013

Funds held interest income (expense)

1,445

731

4,326

3,599

Interest income from Parent
-
1,075
-
2,150

Gross investment income
98,480

78,644

191,375

155,762

Investment expenses

(7,771
)

(6,574
)

(16,132
)

(13,783
)
Net investment income
$
90,709

$
72,070

$
175,243

$
141,979

(Some amounts may not reconcile due to rounding.)

The Company records results from limited partnership investments on the equity method of accounting with changes in value reported through net investment income. Due to the timing of receiving financial information from these partnerships, the results are generally reported on a one month or quarter lag. If the Company determines there has been a significant decline in value of a limited partnership during this lag period, a loss will be recorded in the period in which the Company identifies the decline.

The Company had contractual commitments to invest up to an additional ~~$565,479~~$880,460 thousand in limited partnerships and private placement loans at ~~June 30, 2019.~~March 31, 2020. These commitments will be funded when called in accordance with the partnership and loan agreements, which have investment periods that expire, unless extended, through ~~2023.~~

~~Beginning in the first quarter of 2016, the~~2026.

The Company ~~participated~~participates in a private placement liquidity sweep facility (“the facility”). The primary purpose of the facility is to enhance the Company’s return on its short-term investments and cash positions. The facility invests in high quality, short-duration securities and permits daily liquidity. ~~Through the second quarter of 2018, the Company’s participation in the facility was classified within other invested assets on the Company’s Balance Sheets.~~

~~As of the third quarter of 2018, the~~The Company ~~has consolidated~~consolidates its participation in the facility. As ~~a result, the underlying investments are now recorded in the various investment line items within the Company’s balance sheet, rather than as part~~ of ~~other invested assets. As of June 30, 2019,~~March 31, 2020, the market value of investments in the facility consolidated within the Company’s balance sheets was ~~$305,548~~$214,344 thousand.

Other invested assets, at fair value, as of ~~June 30, 2019~~March 31, 2020 and December 31, ~~2018,~~2019, were comprised of preferred shares held in Preferred Holdings, an affiliated company.

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

	Three Months Ended
	March 31,
(Dollars in thousands)	2020		2019
Fixed maturity securities, market value:
Allowances for credit losses	$	(12,099)	$	-
Other-than-temporary impairments		-		(2,290)
Gains (losses) from sales		(20,937)		3,426
Fixed maturity securities, fair value:
Gains (losses) from fair value adjustments		(1,123)		13
Equity securities, fair value:
Gains (losses) from sales		(27,602)		5,044
Gains (losses) from fair value adjustments		(121,669)		77,846
Other invested assets		(2,327)		396
Other invested assets, fair value:
Gains (losses) from fair value adjustments		442,479		50,627
Short-term investment gains (losses)		145		(6)
Total net realized capital gains (losses)	$	256,867	$	135,056

			Foreign		Foreign
	Corporate		Government		Corporate
	Securities		Securities		Securities		Total

Balance as of December 31, 2019	$	-	$	-	$	-	$	-
Provision for credit losses		(11,468)		(70)		(561)		(12,099)

Balance as of March 31, 2020	$	(11,468)	$	(70)	$	(561)	$	(12,099)

Three Months Ended Six Months Ended
June 30, June 30,
(Dollars in thousands)
2019 2018 2019 2018
Fixed maturity securities, market value:

Other-than-temporary impairments
$
(4,929
)

$
(872
)

$
(7,219
)

$
(907
)
Gains (losses) from sales
(2,313
)

(172
)

1,113

5,958

Fixed maturity securities, fair value:

Gains (losses) from sales
356

(1,068
)

356

(1,082
)
Gains (losses) from fair value adjustments -
958

13

958

Equity securities, fair value:

Gains (losses) from sales
(1,314
)

(1,601
)

3,730

(4,082
)
Gains (losses) from fair value adjustments
25,829

25,550

103,675

(1,464
)
Other invested assets

(152
)

581

244

584

Other invested assets, fair value:

Gains (losses) from fair value adjustments
125,024

(65,647
)

175,651

(102,436
)
Short-term investment gains (losses)

62
-
56

(1
)
Total net realized capital gains (losses)

$
142,563

$
(42,271
)

$
277,619

$
(102,472
)

The Company recorded as net realized capital gains (losses) in the consolidated statements of operations and comprehensive income (loss) ~~both~~ fair value re-measurements, allowances for credit losses per ASU 2016-13 and write-downs in the value of securities deemed to be impaired on an other-than-temporary basis in prior years as displayed in the table above. The Company had no other-than-temporary impaired securities where the impairment had both a credit and non-credit component.

The proceeds and split between gross gains and losses, from sales of fixed maturity and equity securities, are presented in the table below for the periods indicated:

	Three Months Ended
	March 31,
(Dollars in thousands)	2020		2019
Proceeds from sales of fixed maturity securities	$	164,244	$	1,603,889
Gross gains from sales		1,846		8,104
Gross losses from sales		(22,783)		(4,678)

Proceeds from sales of equity securities	$	204,161	$	69,238
Gross gains from sales		2,581		5,671
Gross losses from sales		(30,183)		(627)

Three Months Ended Six Months Ended
June 30, June 30,
(Dollars in thousands) 2019 2018 2019 2018
Proceeds from sales of fixed maturity securities $ 403,419 $ 214,942 $ 2,007,308 $ 369,923
Gross gains from sales 3,133 2,066 11,237 8,993
Gross losses from sales (5,090 ) (3,306 ) (9,768 ) (4,117 )

Proceeds from sales of equity securities $ 79,735 $ 301,448 $ 148,973 $ 429,927
Gross gains from sales 2,577 4,678 8,248 7,906
Gross losses from sales (3,891 ) (6,279 ) (4,518 ) (11,988 )

4. RESERVES FOR LOSSES AND LAE

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

	Three Months Ended		Three Months Ended
	March 31,		March 31,
(Dollars in thousands)	2020		2019
Gross reserves beginning of period	$	10,209,519	$	10,167,018
Less reinsurance recoverables		(4,215,348)		(4,697,543)
Net reserves beginning of period		5,994,171		5,469,475
Incurred related to:
Current year		1,026,442		788,837
Prior years		3,071		7,259
Total incurred losses and LAE		1,029,513		796,096
Paid related to:
Current year		138,778		100,676
Prior years		593,482		607,365
Total paid losses and LAE		732,260		708,041

Foreign exchange/translation adjustment and cumulative adjustment due to adoption of ASU 2016-13		(36,673)		7,368

Net reserves end of period		6,254,751		5,564,898
Plus reinsurance recoverables		4,016,471		4,608,571
Gross reserves end of period	$	10,271,222	$	10,173,469

(Some amounts may not reconcile due to rounding.)

Six Months Ended Six Months Ended
June 30, June 30,
(Dollars in thousands) 2019 2018
Gross reserves beginning of period

$
10,167,018

$
9,343,028

Less reinsurance recoverables
(4,697,543
)

(5,727,268
)
Net reserves beginning of period

5,469,475

3,615,760

Incurred related to:
Current year
1,615,277

1,451,011

Prior years
24,041

491,004

Total incurred losses and LAE
1,639,318

1,942,015

Paid related to:
Current year
391,381

378,985

Prior years
1,144,204

912,199

Total paid losses and LAE
1,535,585

1,291,184

Foreign exchange/translation adjustment
228

(16,509
)

Net reserves end of period

5,573,437

4,250,082

Plus reinsurance recoverables
4,574,975

5,037,479

Gross reserves end of period

$
10,148,412

$
9,287,561

(Some amounts may not reconcile due to rounding.)

~~Incurred prior years~~

Current year incurred losses ~~increased by $24,041~~were $1,026,442 thousand for the ~~six~~three months ended ~~June 30, 2019~~March 31, 2020 and ~~by $491,004~~$788,837 thousand for the ~~six~~three months ended ~~June 30, 2018,~~March 31, 2019, respectively. The increase ~~for 2018~~in current year incurred losses in 2020 compared to 2019 was ~~mainly~~primarily due to ~~$494,221~~$35,700 thousand of ~~adverse development on prior years catastrophe~~incurred losses ~~primarily related~~due to ~~Hurricanes Harvey, Irma and Maria,~~COVID-19 as well as the ~~2017 California wildfires. The~~impact of 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.

premiums earned.

5. FAIR VALUE

GAAP guidance regarding fair value measurements address how companies should measure fair value when they are required to use fair value measures for recognition or disclosure purposes under GAAP and provides a common definition of fair value to be used throughout GAAP. It defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly fashion between market participants at the measurement date. In addition, it establishes a three-level valuation hierarchy for the disclosure of fair value measurements. The valuation hierarchy is based on the transparency of inputs to the valuation of an asset or liability. The level in the hierarchy within which a given fair value measurement falls is determined based on the lowest level input that is significant to the measurement, with Level 1 being the highest priority and Level 3 being the lowest priority.

The levels in the hierarchy are defined as follows:

Level 1:

Inputs to the valuation methodology are observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in an active market;

Level 2:

Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument;

Level 3:

Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The Company’s fixed maturity and equity securities are primarily managed by third party investment asset managers. The investment asset managers managing publicly traded securities obtain prices from nationally recognized pricing services. These services seek to utilize market data and observations in their evaluation process. They use pricing applications that vary by asset class and incorporate available market information and when fixed maturity securities do not trade on a daily basis the services will apply available information through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing. In addition, they use model processes, such as the Option Adjusted Spread model to develop prepayment and interest rate scenarios for securities that have prepayment features.

In limited instances where prices are not provided by pricing services or in rare instances when a manager may not agree with the pricing service, price quotes on a non-binding basis are obtained from investment brokers. The investment asset managers do not make any changes to prices received from either the pricing services or the investment brokers. In addition, the investment asset managers have procedures in place to review the reasonableness of the prices from the service providers and may request verification of the prices. In addition, the Company continually performs analytical reviews of price changes and tests the prices on a random basis to an independent pricing source. No material variances were noted during these price validation procedures. In limited situations, where financial markets are inactive or illiquid, the Company may use its own assumptions about future cash flows and risk-adjusted discount rates to determine fair value. At ~~June 30, 2019, $474,322~~March 31, 2020, $881,064 thousand of fixed maturities, market value and $4,703 thousand of fixed maturities, fair value were fair valued using unobservable inputs. The majority of the fixed maturities, market value, ~~$412,095~~$722,948 thousand and all of the $4,703 thousand of fixed maturities, fair value, were valued by investment managers’ valuation committees and ~~a majority~~many of these fair values were substantiated by valuations from independent third parties. The Company has procedures in place to review and evaluate these independent third party valuations. The remaining Level 3 fixed maturities of ~~$62,228~~$158,116 thousand were fair valued by the Company at either par or amortized cost, which the Company believes approximates fair value. At December 31, ~~2018, $383,994~~2019, $702,331 thousand of fixed maturities, market value and ~~$2,337~~$5,826 thousand of fixed maturities, fair value were fair valued using unobservable inputs. The majority of the fixed maturities, market value, ~~$354,133~~$610,873 thousand and all of the ~~$2,337~~$5,826 thousand of fixed maturities, fair value, were valued by investment managers’ valuation committees and a majority of these fair values were substantiated by valuations from independent third parties. The remaining Level 3 fixed maturities of ~~$28,708~~$91,458 thousand were fair valued by the Company at either par or amortized cost, ~~and $1,153 thousand were priced using a non-binding broker quote.~~

which the Company believes approximates fair value.

The Company internally manages a public equity portfolio which had a fair value at ~~June 30, 2019~~March 31, 2020 and December 31, ~~2018~~2019 of ~~$155,784~~$210,845 thousand and ~~$124,228~~$170,888 thousand, respectively, and all prices were obtained from publicly published sources.

Equity securities denominated in U.S. currency with quoted prices in active markets for identical assets are categorized as level 1 since the quoted prices are directly observable. Equity securities traded on foreign exchanges are categorized as level 2 due to the added input of a foreign exchange conversion rate to determine fair or market value. The Company uses foreign currency exchange rates published by nationally recognized sources.

All categories of fixed maturity securities listed in the tables below are generally categorized as level 2, since a particular security may not have traded but the pricing services are able to use valuation models with observable market inputs such as interest rate yield curves and prices for similar fixed maturity securities in terms of issuer, maturity and seniority. For foreign government securities and foreign corporate securities, the fair values provided by the third party pricing services in local currencies, and where applicable, are converted to U.S. dollars using currency exchange rates from nationally recognized sources.

The fixed maturities with fair values categorized as level 3 result when prices are not available from the nationally recognized pricing services. The asset managers will then obtain non-binding price quotes for the securities from brokers. The single broker quotes are provided by market makers or broker-dealers who are recognized as market participants in the markets in which they are providing the quotes. The prices received from brokers are reviewed for reasonableness by the third party asset managers and the Company. If the broker quotes are for foreign denominated securities, the quotes are converted to U.S. dollars using currency exchange rates from nationally recognized sources. In limited circumstances when broker prices are not

~~available for private placements, the Company will value the securities using comparable market information or receive fair values from investment managers.~~

The composition and valuation inputs for the presented fixed maturities categories are as follows:

·U.S. Treasury securities and obligations of U.S. government agencies and corporations are primarily comprised of U.S. Treasury bonds and the fair value is based on observable market inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields;

·Obligations of U.S. states and political subdivisions are comprised of state and municipal bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads;

·Corporate securities are primarily comprised of U.S. corporate and public utility bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads;

·Asset-backed and mortgage-backed securities fair values are based on observable inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields and cash flow models using observable inputs such as prepayment speeds, collateral performance and default spreads;

·Foreign government securities are comprised of global non-U.S. sovereign bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source;

·Foreign corporate securities are comprised of global non-U.S. corporate bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source.

Other invested assets, at fair value, ~~was~~were categorized as Level 3 at ~~June 30, 2019~~March 31, 2020 and December 31, ~~2018,~~2019, since it represented a privately placed convertible preferred stock issued by an affiliate. The stock was received in exchange for shares of the Company’s parent. The 25 year redeemable, convertible preferred stock with a ~~1.75%~~1.75 % coupon is valued using a pricing model. The pricing model includes observable inputs such as the U.S. Treasury yield curve rate T note constant maturity 2010 year and the swap rate on the Company’s June 1, 2044 ~~4.868%~~, 4.868% senior notes, with adjustments to reflect the Company’s own assumptions about the inputs that market participants would use in pricing the asset.

The following table presents the fair value measurement levels for all assets, which the Company has recorded at fair value (fair and market value) as of the period indicated:

			Fair Value Measurement Using:
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	March 31,		Assets		Inputs		Inputs
(Dollars in thousands)	2020		(Level 1)		(Level 2)		(Level 3)
Assets:
Fixed maturities, market value
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	805,412	$	-	$	805,412	$	-
Obligations of U.S. States and political subdivisions		523,894		-		523,894		-
Corporate securities		2,812,734		-		2,170,301		642,433
Asset-backed securities		800,118		-		561,487		238,631
Mortgage-backed securities
Commercial		329,328		-		329,328		-
Agency residential		665,728		-		665,728		-
Non-agency residential		1,077		-		1,077		-
Foreign government securities		670,852		-		670,852		-
Foreign corporate securities		887,672		-		887,672		-
Total fixed maturities, market value		7,496,815		-		6,615,751		881,064

Fixed maturities, fair value		4,703		-		-		4,703
Equity securities, fair value		578,531		544,056		34,475		-
Other invested assets, fair value		2,425,061		-		-		2,425,061

Fair Value Measurement Using:
Quoted Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
(Dollars in thousands) June 30, 2019 (Level 1) (Level 2) (Level 3)
Assets:

Fixed maturities, market value

U.S. Treasury securities and obligations of
U.S. government agencies and corporations
$
901,249

$
-
$
901,249

$
-
Obligations of U.S. States and political subdivisions
527,706
-
527,706
-
Corporate securities
2,554,690
-
2,082,461

472,229

Asset-backed securities
517,207
-
517,207
-
Mortgage-backed securities
Commercial
286,611
-
286,611
-
Agency residential
616,591
-
616,591
-
Non-agency residential
2,704
-
2,704
-
Foreign government securities
535,728
-
535,728
-
Foreign corporate securities
1,029,485
-
1,027,392

2,093

Total fixed maturities, market value

6,971,971
-
6,497,649

474,322

Fixed maturities, fair value
- - - -
Equity securities, fair value

751,642

690,230

61,412
-
Other invested assets, fair value

1,892,988
- -
1,892,988

There were no transfers between Level 1 and Level 2 for the ~~six~~three months ended ~~June 30, 2019.~~March 31, 2020.

The following table presents the fair value measurement levels for all assets, which the Company has recorded at fair value (fair and market value) as of the period ~~indicated:~~indicated.

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

Fixed maturities, fair value		5,826		-		-		5,826
Equity securities, fair value		764,049		719,548		44,501		-
Other invested assets, fair value		1,982,582		-		-		1,982,582

Fair Value Measurement Using:
Quoted Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
(Dollars in thousands) December 31, 2018 (Level 1) (Level 2) (Level 3)
Assets:

Fixed maturities, market value

U.S. Treasury securities and obligations of
U.S. government agencies and corporations
$
2,242,797

$
-
$
2,242,797

$
-
Obligations of U.S. States and political subdivisions
499,089
-
499,089
-
Corporate securities
2,216,153
-
1,839,903

376,250

Asset-backed securities
221,255
-
221,255
-
Mortgage-backed securities
Commercial
136,604
-
136,604
-
Agency residential
148,774
-
148,774
-
Non-agency residential
3,114
-
3,114
-
Foreign government securities
579,586
-
579,586
-
Foreign corporate securities
914,703
-
906,959

7,744

Total fixed maturities, market value

6,962,075
-
6,578,081

383,994

Fixed maturities, fair value

2,337
- -
2,337

Equity securities, fair value

564,338

540,894

23,444
-
Other invested assets, fair value

1,717,336
- -
1,717,336

In addition, ~~$154,908~~$212,677 thousand and ~~$117,662~~$209,578 thousand of investments within other invested assets on the consolidated balance sheets as of ~~June 30, 2019~~March 31, 2020 and December 31, ~~2018,~~2019, respectively, are not included within the fair value hierarchy tables as the assets are measured at NAV as a practical expedient to determine fair value.

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

	Total Fixed Maturities, Market Value
	Three Months Ended March 31, 2020								Three Months Ended March 31, 2019
	Corporate		Asset		Foreign				Corporate		Asset		Foreign
(Dollars in thousands)	Securities		Backed Securities		Corporate		Total		Securities		Backed Securities		Corporate		Total
Beginning balance	$	546,939	$	153,641	$	1,751	$	702,331	$	376,250	$	-	$	7,744	$	383,994
Total gains or (losses) (realized/unrealized)
Included in earnings		(214)		4		-		(210)		4,858		-		119		4,977
Included in other comprehensive income (loss)		(3,357)		(15,882)		-		(19,239)		574		-		-		574
Purchases, issuances and settlements		99,064		100,868		(1,751)		198,181		(12,046)		-		(565)		(12,611)
Transfers in and/or (out) of Level 3		-		-		-		-		(2,458)		-		-		(2,458)
Ending balance	$	642,432	$	238,631	$	-	$	881,063	$	367,178	$	-	$	7,298	$	374,476
The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	$	(539)	$	-	$	-	$	(539)	$	-	$	-	$	-	$	-

(Some amounts may not reconcile due to rounding.)

	Total Fixed Maturities, Fair Value
	Three Months Ended March 31, 2020				Three Months Ended March 31, 2019
	Foreign				Foreign
(Dollars in thousands)	Corporate		Total		Corporate		Total
Beginning balance fixed maturities at fair value	$	5,826	$	5,826	$	2,337	$	2,337
Total gains or (losses) (realized/unrealized)
Included in earnings		(1,123)		(1,123)		13		13
Included in other comprehensive income (loss)		-		-		-		-
Transfers in and/or (out) of Level 3		-		-		-		-
Ending balance	$	4,703	$	4,703	$	2,350	$	2,350
The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	$	-	$	-	$	-	$	-

(Some amounts may not reconcile due to rounding.)

Total Fixed Maturities, Market Value
Three Months Ended June 30, 2019 Six Months Ended June 30, 2019
Corporate Foreign Corporate Foreign
(Dollars in thousands) Securities Corporate Total Securities Corporate Total
Beginning balance
$
367,178

$
7,298

$
374,476

$
376,250

$
7,744

$
383,994

Total gains or (losses) (realized/unrealized)
Included in earnings
(2,528
)

(238
)

(2,766
)

2,330

(119
)

2,211

Included in other comprehensive income (loss)
1,870
-
1,870

2,444
-
2,444

Purchases, issuances and settlements
101,732

(4,967
)

96,765

89,686

(5,532
)

84,154

Transfers in and/or (out) of Level 3
3,977
-
3,977

1,519
-
1,519

Ending balance

$
472,229

$
2,093

$
474,322

$
472,229

$
2,093

$
474,322

The amount of total gains or losses for the period included

in earnings (or changes in net assets) attributable to the
change in unrealized gains or losses relating to assets
still held at the reporting date
$
-
$
-
$
-
$
-
$
-
$
-

(Some amounts may not reconcile due to rounding.)

Total Fixed Maturities, Market Value
Three Months Ended June 30, 2018 Six Months Ended June 30, 2018
Corporate Foreign Corporate Foreign
(Dollars in thousands) Securities Corporate Total Securities Corporate Total
Beginning balance
$
168,590

$
11,368

$
179,958

$
158,221

$
6,952

$
165,173

Total gains or (losses) (realized/unrealized)
Included in earnings
623

(504
)

119

1,345

(410
)

935

Included in other comprehensive income (loss)
190
-
190

425
-
425

Purchases, issuances and settlements
159,846

1

159,847

169,258

4,323

173,581

Transfers in and/or (out) of Level 3 -
1,750

1,750

-

1,750

1,750

Ending balance

$
329,249

$
12,615

$
341,864

$
329,249

$
12,615

$
341,864

The amount of total gains or losses for the period included

in earnings (or changes in net assets) attributable to the
change in unrealized gains or losses relating to assets
still held at the reporting date
$
-
$
-
$
-
$
-
$
-
$
-

(Some amounts may not reconcile due to rounding.)

Total Fixed Maturities, Fair Value
Three Months Ended June 30, 2019 Six Months Ended June 30, 2019
Foreign Foreign
(Dollars in thousands)
Corporate Total Corporate Total
Beginning balance fixed maturities at fair value

$
2,350

$
2,350

$
2,337

$
2,337

Total gains or (losses) (realized/unrealized)
Included in earnings
356

356

369

369

Included in other comprehensive income (loss)
-

-

-

-

Purchases, issuances and settlements
(2,706
)

(2,706
)

(2,706
)

(2,706
)
Transfers in and/or (out) of Level 3
-

-

-

-

Ending balance

$
-

$
-

$
-

$
-

The amount of total gains or losses for the period included

in earnings (or changes in net assets) attributable to the
change in unrealized gains or losses relating to assets
still held at the reporting date
$
-

$
-

$
-

$
-

(Some amounts may not reconcile due to rounding.)

Total Fixed Maturities, Fair Value
Three Months Ended June 30, 2018 Six Months Ended June 30, 2018
Foreign Foreign
(Dollars in thousands)
Corporate Total Corporate Total
Beginning balance fixed maturities at fair value

$
1,821

$
1,821

$
-

$
-

Total gains or (losses) (realized/unrealized)
Included in earnings
(142
)

(142
)

(156
)

(156
)
Included in other comprehensive income (loss)
32

32

32

32

Purchases, issuances and settlements
1,481

1,481

3,316

3,316

Transfers in and/or (out) of Level 3
-

-

-

-

Ending balance

$
3,192

$
3,192

$
3,192

$
3,192

The amount of total gains or losses for the period included

in earnings (or changes in net assets) attributable to the
change in unrealized gains or losses relating to assets
still held at the reporting date
$
-

$
-

$
-

$
-

(Some amounts may not reconcile due to rounding.)

The net transfers to/(from) level 3, fair value measurements using significant unobservable inputs for fixed maturities, market value were ~~$3,977~~$0 thousand and ~~$1,519~~$(2,458) thousand for the three ~~and six~~ months ended ~~June 30, 2019.~~March 31, 2020 and 2019, respectively. The transfers during 2019 were related to securities that were priced using investment managers as of December 31, 2018 and were subsequently priced by a recognized pricing service as of ~~December~~March 31, ~~2018. These securities were subsequently priced using single non-binding broker quotes as of June 30,~~ 2019.

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

	Three Months Ended
	March 31,
(Dollars in thousands)	2020		2019
Other invested assets, fair value:
Beginning balance	$	1,982,582	$	1,717,336
Total gains or (losses) (realized/unrealized)
Included in earnings		442,479		50,627
Included in other comprehensive income (loss)		-		-
Purchases, issuances and settlements		-		-
Transfers in and/or (out) of Level 3		-		-
Ending balance	$	2,425,061	$	1,767,963
The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	$	-	$	-

(Some amounts may not reconcile due to rounding.)

Three Months Ended Six Months Ended
June 30, June 30,
(Dollars in thousands) 2019 2018 2019 2018
Other invested assets, fair value:
Beginning balance
$
1,767,963

$
1,770,684

$
1,717,336

$
1,807,473

Total gains or (losses) (realized/unrealized)
-

Included in earnings
125,025

(65,647
)

175,652

(102,436
)
Included in other comprehensive income (loss)
-

-

-

-

Purchases, issuances and settlements
-

-

-

-

Transfers in and/or (out) of Level 3
-

-

-

-

Ending balance

$
1,892,988

$
1,705,037

$
1,892,988

$
1,705,037

The amount of total gains or losses for the period included in earnings

(or changes in net assets) attributable to the change in unrealized
gains or losses relating to assets still held at the reporting date
$
-

$
-

$
-

$
-

(Some amounts may not reconcile due to rounding.)

6. COMMITMENTS AND CONTINGENCIES

In the ordinary course of business, the Company is involved in lawsuits, arbitrations and other formal and informal dispute resolution procedures, the outcomes of which will determine the Company’s rights and obligations under insurance and reinsurance agreements. In some disputes, the Company seeks to enforce its rights under an agreement or to collect funds owing to it. In other matters, the Company is resisting attempts by others to collect funds or enforce alleged rights. These disputes arise from time to time and are ultimately resolved through both informal and formal means, including negotiated resolution, arbitration and litigation. In all such matters, the Company believes that its positions are legally and commercially reasonable. The Company considers the statuses of these proceedings when determining its reserves for unpaid loss and loss adjustment expenses.

Aside from litigation and arbitrations related to these insurance and reinsurance agreements, the Company is not a party to any other material litigation or arbitration.

The Company has entered into separate annuity agreements with The Prudential Insurance Company of America (“The Prudential”) and an additional unaffiliated life insurance company in which the Company has either purchased annuity contracts or become the assignee of annuity proceeds that are meant to settle claim payment obligations in the future. In both instances, the Company would become contingently liable if either The Prudential or the unaffiliated life insurance company were unable to make payments related to the respective annuity contract.

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

	At March 31,		At December 31,
(Dollars in thousands)	2020		2019
The Prudential	$	141,281	$	141,703
Unaffiliated life insurance company		33,116		35,082

At June 30, At December 31,
(Dollars in thousands) 2019 2018
The Prudential $ 141,386 $ 142,754
Unaffiliated life insurance company 33,720 34,717

7. COMPREHENSIVE INCOME (LOSS)

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

	Three Months Ended March 31, 2020
(Dollars in thousands)	Before Tax		Tax Effect		Net of Tax
Unrealized appreciation (depreciation) ("URA(D)") on securities - temporary	$	(223,770)		46,246	$	(177,524)
Reclassification of net realized losses (gains) included in net income (loss)		35,364		(7,478)		27,886
Foreign currency translation adjustments		(37,532)		7,899		(29,633)
Reclassification of amortization of net gain (loss) included in net income (loss)		1,165		(245)		920
Total other comprehensive income (loss)	$	(224,773)	$	46,422	$	(178,351)

(Some amounts may not reconcile due to rounding)

	Three Months Ended March 31, 2019
(Dollars in thousands)	Before Tax		Tax Effect		Net of Tax
Unrealized appreciation (depreciation) ("URA(D)") on securities - temporary	$	112,441	$	(23,730)	$	88,711
URA(D) on securities - OTTI		(332)		70		(262)
Reclassification of net realized losses (gains) included in net income (loss)		(1,532)		516		(1,016)
Foreign currency translation adjustments		12,110		(2,546)		9,564
Reclassification of amortization of net gain (loss) included in net income (loss)		1,457		(306)		1,151
Total other comprehensive income (loss)	$	124,144	$	(25,996)	$	98,148

(Some amounts may not reconcile due to rounding)

Three Months Ended June 30, 2019 Six Months Ended June 30, 2019
(Dollars in thousands) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax
Unrealized appreciation (depreciation) ("URA(D)") on securities - temporary $ 86,524 $ (18,138 ) $ 68,386 $ 198,965 $ (41,868 ) $ 157,097
URA(D) on securities - OTTI (368 ) 77 (291 ) $ (700 ) 147 $ (553 )
Reclassification of net realized losses (gains) included in net income (loss) 7,394 (1,536 ) 5,858 5,862 (1,020 ) 4,842
Foreign currency translation adjustments (9,465 ) 1,990 (7,475 ) 2,645 (556 ) 2,089
Reclassification of amortization of net gain (loss) included in net income (loss) 1,457 (306 ) 1,151 2,914 (612 ) 2,302
Total other comprehensive income (loss) $ 85,542 $ (17,913 ) $ 67,629 $ 209,686 $ (43,909 ) $ 165,777

(Some amounts may not reconcile due to rounding)

Three Months Ended June 30, 2018 Six Months Ended June 30, 2018
(Dollars in thousands) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax
Unrealized appreciation (depreciation) ("URA(D)") on securities - temporary $ (23,527 ) $ 5,152 $ (18,375 ) $ (82,917 ) $ 17,642 $ (65,275 )
URA(D) on securities - OTTI 266 (56 ) 210 365 (77 ) 288
Reclassification of net realized losses (gains) included in net income (loss) 463 (309 ) 154 (5,635 ) 954 (4,681 )
Foreign currency translation adjustments (26,362 ) 5,550 (20,812 ) (28,058 ) 5,904 (22,154 )
Reclassification of amortization of net gain (loss) included in net income (loss) 2,297 (482 ) 1,815 4,595 (965 ) 3,630
Total other comprehensive income (loss) $ (46,863 ) $ 9,855 $ (37,008 ) $ (111,650 ) $ 23,458 $ (88,192 )

(Some amounts may not reconcile due to rounding)

The following table presents details of the amounts reclassified from AOCI for the periods indicated:

	Three Months Ended				Affected line item within the
	March 31,				statements of operations and
AOCI component	2020		2019		comprehensive income (loss)
(Dollars in thousands)
URA(D) on securities	$	35,364	$	(1,532)	Other net realized capital gains (losses)
		(7,478)		516	Income tax expense (benefit)
	$	27,886	$	(1,016)	Net income (loss)
Benefit plan net gain (loss)	$	1,165	$	1,457	Other underwriting expenses
		(245)		(306)	Income tax expense (benefit)
	$	920	$	1,151	Net income (loss)

(Some amounts may not reconcile due to rounding)

Three Months Ended Six Months Ended
June 30, June 30, Affected line item within the statements of
AOCI component 2019 2018 2019 2018 operations and comprehensive income (loss)
(Dollars in thousands)
URA(D) on securities $ 7,394 $ 463 $ 5,862 $ (5,635 ) Other net realized capital gains (losses)
(1,536 ) (309 ) (1,020 ) 954 Income tax expense (benefit)
$ 5,858 $ 154 $ 4,842 $ (4,681 ) Net income (loss)

Benefit plan net gain (loss) $ 1,457 $ 2,297 $ 2,914 $ 4,595 Other underwriting expenses
(306 ) (482 ) (612 ) (965 ) Income tax expense (benefit)
$ 1,151 $ 1,815 $ 2,302 $ 3,630 Net income (loss)

(Some amounts may not reconcile due to rounding)

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

	Three Months Ended
	March 31,
(Dollars in thousands)	2020		2019
Beginning balance of URA (D) on securities	$	124,612	$	(55,950)
Current period change in URA (D) of investments - temporary		(149,638)		87,695
Current period change in URA (D) of investments - non-credit OTTI		-		(262)
Ending balance of URA (D) on securities		(25,025)		31,483

Beginning balance of foreign currency translation adjustments		14,267		(2,886)
Current period change in foreign currency translation adjustments		(29,633)		9,564
Ending balance of foreign currency translation adjustments		(15,367)		6,678

Beginning balance of benefit plan net gain (loss)		(74,556)		(67,418)
Current period change in benefit plan net gain (loss)		920		1,151
Ending balance of benefit plan net gain (loss)		(73,635)		(66,267)

Ending balance of accumulated other comprehensive income (loss)	$	(114,027)	$	(28,106)

Three Months Ended Six Months Ended
June 30, June 30,
(Dollars in thousands) 2019 2018 2019 2018

Beginning balance of URA (D) on securities

$
31,483

$
(16,662
)

$
(55,950
)

$
37,442

Change to beginning balance due to adoption of ASU 2016-01

-

-

-

(2,447
)
Current period change in URA (D) of investments - temporary

74,244

(18,221
)

161,939

(69,956
)
Current period change in URA (D) of investments - non-credit OTTI

(291
)

210

(553
)

288

Ending balance of URA (D) on securities

105,436

(34,673
)

105,436

(34,673
)

Beginning balance of foreign currency translation adjustments

6,678

32,203

(2,886
)

33,545

Current period change in foreign currency translation adjustments

(7,475
)

(20,812
)

2,089

(22,154
)
Ending balance of foreign currency translation adjustments

(797
)

11,391

(797
)

11,391

Beginning balance of benefit plan net gain (loss)

(66,267
)

(70,114
)

(67,418
)

(71,929
)
Current period change in benefit plan net gain (loss)

1,151

1,815

2,302

3,630

Ending balance of benefit plan net gain (loss)

(65,116
)

(68,299
)

(65,116
)

(68,299
)

Ending balance of accumulated other comprehensive income (loss)

$
39,523

$
(91,581
)

$
39,523

$
(91,581
)

8. COLLATERALIZED REINSURANCE AND TRUST AGREEMENTS

A subsidiary of the Company, Everest Re, has established a trust agreement, which effectively uses Everest Re’s investments as collateral, as security for assumed losses payable to non-affiliated ceding companies. At ~~June 30, 2019,~~March 31, 2020, the total amount on deposit in the trust account was ~~$644,803~~$752,337 thousand.

On April 24, 2014, the Company entered into two collateralized reinsurance agreements with Kilimanjaro Re Limited (“Kilimanjaro”), a Bermuda based special purpose reinsurer, to provide the Company with catastrophe reinsurance coverage. These agreements are multi-year reinsurance contracts, which cover specified named storm and earthquake events. The first agreement provides up to $250,000 thousand of reinsurance coverage from named storms in specified states of the Southeastern United States. The second agreement provides up to $200,000 thousand of reinsurance coverage from named storms in specified states of the Southeast, Mid-Atlantic and Northeast regions of the United States and Puerto Rico as well as reinsurance coverage from earthquakes in specified states of the Southeast, Mid-Atlantic, Northeast and West regions of the United States, Puerto Rico and British Columbia. These reinsurance agreements expired in April ~~2018.~~

2018.

On November 18, 2014, the Company entered into a collateralized reinsurance agreement with Kilimanjaro to provide the Company with catastrophe reinsurance coverage. This agreement is a multi-year reinsurance contract which covers specified earthquake events. The agreement provides up to $500,000 thousand of reinsurance coverage from earthquakes in the United States, Puerto Rico and Canada.

These reinsurance agreements expired in November, 2019.

On December 1, 2015, the Company entered into two collateralized reinsurance agreements with Kilimanjaro to provide the Company with catastrophe reinsurance coverage. These agreements are multi-year reinsurance contracts which cover named storm and earthquake events. The first agreement provides up to $300,000 thousand of reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico and Canada. The second agreement provides up to $325,000 thousand of reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico and Canada.

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

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

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

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

Recoveries under these collateralized reinsurance agreements with Kilimanjaro are primarily dependent on estimated industry level insured losses from covered events, as well as, the geographic location of the events. The estimated industry level of insured losses is obtained from published estimates by an independent recognized authority on insured property losses. Currently, none of the published insured loss estimates for ~~the 2017~~ catastrophe events during the applicable covered periods of the various agreements have exceeded the single event retentions or aggregate retentions under the terms of the agreements that would result in a recovery. In addition, the aggregation of the to date published insured loss estimates for the 2017 covered events have not exceeded the aggregated retentions for recovery. However, if the published estimates for insured losses for the covered 2017 events increase, the aggregate losses may exceed the aggregate event retentions under the agreements resulting in a recovery.

Kilimanjaro has financed the various property catastrophe reinsurance coverages by issuing catastrophe bonds to unrelated, external investors. On April 24, 2014, Kilimanjaro issued $450,000 thousand of notes (“Series 2014-1 Notes”). The $450,000 thousand of Series 2014-1 Notes were fully redeemed on April 30, 2018 and are no longer outstanding. On November 18, 2014, Kilimanjaro issued $500,000 thousand of notes (“Series 2014-2 Notes”). The $450,000 thousand of Series 2014-2 Notes were fully redeemed in November 2019 and are no longer outstanding. On December 1, 2015, Kilimanjaro issued $625,000 thousand of notes (“Series 2015-1 Notes). On April 13, 2017, Kilimanjaro issued $950,000 thousand of notes (“Series 2017-1 Notes) and $300,000 thousand of notes (“Series 2017-2 Notes). On April 30, 2018, Kilimanjaro issued $262,500 thousand of notes (“Series 2018-1 Notes”) and $262,500 thousand of notes (“Series 2018-2 Notes”). On December 12, 2019 Kilimanjaro issued $425,000 thousand of notes (“Series 2019-1 Notes”) and $425,000 thousand of notes (“Series 2019-2 Notes’”). The proceeds from the issuance of the Notes listed above are held in reinsurance trust throughout the duration of the applicable reinsurance agreements and invested solely in US government money market funds with a rating of at least “AAAm” by Standard & Poor’s.

9. SENIOR NOTES

The table below displays Holdings’ outstanding senior notes. Market value is based on quoted market prices, but due to limited trading activity, these senior notes are considered Level 2 in the fair value hierarchy.

March 31, 2020

December 31, 2019

Consolidated

Principal

Balance Sheet

Market

Balance Sheet

Market

(Dollars in thousands)

Date Issued

Date Due

Amounts

Amount

Value

Amount

Value

Senior notes

06/05/2014

06/01/2044

400,000

397,104

454,224

397,074

452,848

June 30, 2019 December 31, 2018
Consolidated Balance Consolidated Balance
(Dollars in thousands) Date Issued Date Due Principal Amounts Sheet Amount Market Value Sheet Amount Market Value
Senior notes 06/05/2014 06/01/2044 400,000 $ 397,014 $ 429,048 $ 396,954 $ 396,968

On June 5, 2014 , Holdings issued $400,000 thousand of 30 year senior notes at ~~4.868%~~4.868 %, which will mature on June 1, ~~2044.~~2044. Interest will be paid semi-annually on June 1 and December 1 of each year.

Interest expense incurred in connection with these senior notes is as follows for the periods indicated:

	Three Months Ended
	March 31,
(Dollars in thousands)	2020		2019
Interest expense incurred	$	4,868	$	4,868

Three Months Ended Six Months Ended
June 30, June 30,
(Dollars in thousands) 2019 2018 2019 2018
Interest expense incurred $ 4,868 $ 4,868 $ 9,736 $ 9,736

10. LONG TERM SUBORDINATED NOTES

The table below displays Holdings’ outstanding fixed to floating rate long term subordinated notes. Market value is based on quoted market prices, but due to limited trading activity, these subordinated notes are considered Level 2 in the fair value hierarchy.

March 31, 2020

December 31, 2019

Original

Consolidated

Principal

Maturity Date

Balance

Market

Balance

Market

(Dollars in thousands)

Date Issued

Amount

Scheduled

Final

Sheet Amount

Value

Sheet Amount

Value

Long term subordinated notes

04/26/2007

400,000

05/15/2037

05/01/2067

235,083

181,834

236,758

233,191

Maturity Date June 30, 2019 December 31, 2018
Original Consolidated Balance Consolidated Balance
(Dollars in thousands) Date Issued Principal Amount Scheduled Final Sheet Amount Market Value Sheet Amount Market Value
Long term subordinated notes 04/26/2007 $ 400,000 05/15/2037 05/01/2067 $ 236,709 $ 211,125 $ 236,659 $ 200,390

During the fixed rate interest period from May 3, 2007 through May 14, 2017 , interest was at the annual rate of ~~6.6%~~6.6 %, payable semi-annually in arrears on November 15 and May 15 of each year, commencing on November 15, 2007. During the floating rate interest period from May 15, 2017 through maturity, interest will be based on the 3 month LIBOR plus 238.5 basis points, reset quarterly, payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, subject to Holdings’ right to defer interest on one or more occasions for up to ten consecutive years. Deferred interest will accumulate interest at the applicable rate compounded quarterly for periods from and including May 15, 2017. The reset quarterly interest rate for February 18, 2020 to May ~~15, 2019 to August~~ 14, ~~2019~~2020 is ~~4.9%~~4.08%.

Holdings may redeem the long term subordinated notes on or after May 15, 2017 , in whole or in part at ~~100%~~100 % of the principal amount plus accrued and unpaid interest; however, redemption on or after the scheduled maturity date and prior to May 1, 2047 is subject to a replacement capital covenant. This covenant is for the benefit of certain senior note holders and it mandates that Holdings receive proceeds from the sale of another subordinated debt issue, of at least similar size, before it may redeem the subordinated notes. Effective upon the maturity of the Company’s ~~5.40%~~5.40 % senior notes on October 15, 2014 , the Company’s ~~4.868%~~4.868 % senior notes, due on June 1, 2044, have become the Company’s long term indebtedness that ranks senior to the long term subordinated notes.

The Company repurchased and retired $1,700 thousand of its outstanding long term subordinated notes during the three months ended March 31, 2020. The Company realized a gain of $502 thousand from the repurchase of the long term subordinated notes.

On March 19, 2009, Group announced the commencement of a cash tender offer for any and all of the 6.60% fixed to floating rate long term subordinated notes. Upon expiration of the tender offer, the Company had reduced its outstanding debt by $161,441 thousand.

Interest expense incurred in connection with these long term subordinated notes is as follows for the periods indicated:

	Three Months Ended
	March 31,
(Dollars in thousands)	2020		2019
Interest expense incurred	$	2,538	$	2,605

Three Months Ended
June 30,

Six Months Ended
June 30,

(Dollars in thousands) 2019 2018 2019 2018
Interest expense incurred $ 3,406 $ 2,702 $ 6,011 $ 5,093

11. FEDERAL HOME LOAN BANK MEMBERSHIP

Effective August 15, 2019, Everest Re became a member of the Federal Home Loan Bank (“FHLB”) organization, which allows Everest Re to borrow up to 10 % of its statutory admitted assets. As of March 31, 2020, Everest Re had admitted assets of approximately $12,879,681 thousand which provides borrowing capacity of up to approximately $1,287,968 thousand. Through March 31, 2020, Everest Re had no borrowings through the FHLB.

12. LEASES

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

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

	Three Months Ended		Three Months Ended
	March 31,		March 31,
(Dollars in thousands)	2020		2019
Lease expense incurred:
Operating lease cost	$	7,248	$	4,562

	At March 31,		At December 31,
(Dollars in thousands)	2020		2019
Operating lease right of use assets	$	148,855	$	152,978
Operating lease liabilities		158,350		160,387

	Three Months Ended		Three Months Ended
	March 31,		March 31,
(Dollars in thousands)	2020		2019
Operating cash flows from operating leases	$	(4,357)	$	(4,304)

	At March 31,		At December 31,
	2020		2019
Weighted average remaining operating lease term	12.8 years		12.8 years
Weighted average discount rate on operating leases	3.83	%	3.91	%

Six Months Ended
(Dollars in thousands) June 30,
Lease expense incurred: 2019
Operating lease cost $ 9,355

At June 30,
(Dollars in thousands) 2019
Operating lease right of use assets
$ 53,690
Operating lease liabilities
59,335

Six Months Ended
June 30,
(Dollars in thousands) 2019
Operating cash flows from operating leases $ 8,617

		~~At June 30,~~
		~~2019~~
~~Weighted average remaining operating lease term~~		~~5.9 years~~
~~Weighted average discount rate on operating leases~~		~~4.48%~~

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

(Dollars in thousands)
Remainder of 2020	$	13,649
2021		15,844
2022		17,879
2023		17,450
2024		17,438
2025		14,430
Thereafter		111,609
Undiscounted lease payments		208,299
Less: present value adjustment		49,949
Total operating lease liability	$	158,350

(Dollars in thousands)
Remainder of 2019 $ 8,464
2020 16,883
2021 8,160
2022 7,864
2023 7,757
2024 7,611
Thereafter 12,480
Undiscounted lease payments 69,219
Less: present value adjustment 9,884
Total operating lease liability
$ 59,335

The amount of operating lease liabilities is not separately presented in the consolidated financial statements but is included in other liabilities. Disclosures regarding minimum lease payments under previous lease accounting guidance can be found in the Company’s 2018 Form 10-K.

On July 2, 2019, the Company entered into a lease agreement to relocate its corporate offices from Liberty Corner, New Jersey to a corporate complex in Warren, New Jersey. The new lease, which covers approximately 315,000 square feet of office space, will be effective October 1, 2019 and runs through ~~2036.~~2036 . The initial base rent payment of the lease will be approximately $650 thousand per month or $7,800 thousand per year. The Company expects to relocate the existing operations and employees of the Liberty Corner, New Jersey facility to the new corporate complex by ~~the end of 2020.~~

~~12.~~2021.

13. SEGMENT REPORTING

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

United States.

These segments are managed independently, but conform with corporate guidelines with respect to pricing, risk management, control of aggregate catastrophe exposures, capital, investments and support operations. Management generally monitors and evaluates the financial performance of these operating segments based upon their underwriting results.

Underwriting results include earned premium less losses and LAE incurred, commission and brokerage expenses and other underwriting expenses. We measure our underwriting results using ratios, in particular loss, commission and brokerage and other underwriting expense ratios, which, respectively, divide incurred losses, commissions and brokerage and other underwriting expenses by premiums earned.

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

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

	Three Months Ended
Reinsurance	March 31,
(Dollars in thousands)	2020		2019
Gross written premiums	$	1,308,194	$	1,153,111
Net written premiums		1,114,235		975,999

Premiums earned	$	1,007,034	$	897,278
Incurred losses and LAE		682,707		553,714
Commission and brokerage		260,901		236,965
Other underwriting expenses		29,847		24,056
Underwriting gain (loss)	$	33,579	$	82,543

	Three Months Ended
Insurance	March 31,
(Dollars in thousands)	2020		2019
Gross written premiums	$	666,771	$	531,771
Net written premiums		524,474		416,244

Premiums earned	$	486,970	$	373,176
Incurred losses and LAE		346,805		242,382
Commission and brokerage		62,203		51,253
Other underwriting expenses		71,361		54,326
Underwriting gain (loss)	$	6,601	$	25,215

Three Months Ended Six Months Ended
U.S. Reinsurance
June 30, June 30,
(Dollars in thousands) 2019 2018 2019 2018
Gross written premiums

$
641,763

$
652,110

$
1,405,903

$
1,296,332

Net written premiums

487,694

429,931

1,105,835

853,762

Premiums earned

$
605,136

$
467,509

$
1,180,040

$
908,894

Incurred losses and LAE

367,473

708,524

684,111

1,009,728

Commission and brokerage

172,589

148,711

339,692

276,031

Other underwriting expenses

15,728

15,472

31,319

32,358

Underwriting gain (loss)

$
49,346

$
(405,198
)

$
124,918

$
(409,223
)

Three Months Ended Six Months Ended
International
June 30, June 30,
(Dollars in thousands) 2019 2018 2019 2018
Gross written premiums

$
372,671

$
398,714

$
761,642

$
765,738

Net written premiums

350,219

337,357

708,077

672,232

Premiums earned

$
353,086

$
343,133

$
675,460

$
672,072

Incurred losses and LAE

213,808

259,487

450,884

435,846

Commission and brokerage
85,974

84,379

155,836

162,773

Other underwriting expenses
9,632

9,869

18,097

19,955

Underwriting gain (loss)
$
43,672

$
(10,602
)

$
50,643

$
53,498

Three Months Ended Six Months Ended
Insurance
June 30, June 30,
(Dollars in thousands) 2019 2018 2019 2018
Gross written premiums

$
673,603

$
581,460

$
1,205,374

$
1,036,445

Net written premiums

481,952

423,066

898,196

771,387

Premiums earned

$
417,401

$
369,194

$
790,577

$
714,880

Incurred losses and LAE

261,941

260,749

504,323

496,441

Commission and brokerage

58,212

54,912

109,465

105,655

Other underwriting expenses

57,991

48,885

112,317

99,264

Underwriting gain (loss)

$
39,257

$
4,648

$
64,472

$
13,520

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

	Three Months Ended
	March 31,
(Dollars in thousands)	2020		2019
Underwriting gain (loss)	$	40,180	$	107,758
Net investment income		74,201		84,534
Net realized capital gains (losses)		256,867		135,056
Corporate expense		(3,721)		(1,651)
Interest, fee and bond issue cost amortization expense		(7,460)		(9,828)
Other income (expense)		(4,498)		(730)
Income (loss) before taxes	$	355,569	$	315,139

Three Months Ended Six Months Ended
June 30, June 30,
(Dollars in thousands) 2019 2018 2019 2018
Underwriting gain (loss)
$
132,275

$
(411,152
)

$
240,033

$
(342,205
)
Net investment income
90,709

72,070

175,243

141,979

Net realized capital gains (losses)

142,563

(42,271
)

277,619

(102,472
)
Corporate expense

(2,519
)

(1,513
)

(4,170
)

(5,109
)
Interest, fee and bond issue cost amortization expense

(9,684
)

(7,623
)

(19,512
)

(14,936
)
Other income (expense)

(3,812
)

77,682

(5,026
)

2,805

Income (loss) before taxes
$
349,532

$
(312,807
)

$
664,187

$
(319,938
)

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

	Three Months Ended
	March 31,
(Dollars in thousands)	2020		2019
Canada gross written premiums	$	63,637	$	39,050

Three Months Ended Six Months Ended
June 30, June 30,
(Dollars in thousands) 2019 2018 2019 2018
Canada gross written premiums $ 47,206 $ 44,189 $ 86,256 $ 84,581

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

~~13.~~

14. RELATED-PARTY TRANSACTIONS

Parent

Group entered into a $300,000 thousand long term note agreement with Everest Re as of December 17, 2019. The note will pay interest annually at a rate of 1.69 % and is scheduled to mature in December, 2028. This transaction is presented as a Note Receivable – Affiliated in the Consolidated Balance Sheet of Holdings. The Company recognized interest income related to the this long term note of $1,282 thousand and $0 thousand for the three months ended March 31, 2020 and 2019, respectively.

Group entered into a $250,000 thousand long term promissory note agreement with Holdings as of December 31, 2014. The note was repaid in December 2018. Interest income in the amount of $0 thousand and $1,075 thousand was recorded by Holdings for the three months ended June 30, 2019 and 2018, respectively. Interest income in the amount of $0 thousand and $2,150 thousand was recorded by Holdings for the six months ended June 30, 2019 and 2018, respectively.

Group’s Board of Directors approved an amended share repurchase program authorizing Group and/or its subsidiary Holdings to purchase Group’s common shares through open market transactions, privately negotiated transactions or both. The table below represents the amendments to the share repurchase program for the common shares approved for repurchase.

		Common ~~Shares~~
		~~Authorized for~~ Shares
~~Amendment Date~~		~~Repurchase~~ Authorized for
Amendment Date		Repurchase
(Dollars in thousands)
09/21/2004		5,000,000
~~09/~~ 07/21/~~2004~~ 2008		5,000,000
~~07/21/2008~~ 02/24/2010		5,000,000
02/~~24/2010~~ 22/2012		5,000,000
~~02/22/2012~~ 05/15/2013		5,000,000
~~05/15/2013~~ 11/19/2014		5,000,000
~~11/19/2014~~		~~5,000,000~~
		30,000,000

Holdings had purchased and held 9,719,971 Common Shares of Group, which were purchased in the open market between February 2007 and March 2011.

In December, 2015, Holdings transferred the 9,719,971 Common Shares of Group, which it held as other invested assets, at fair value, valued at $1,773,214 thousand, to Preferred Holdings, an affiliated entity and subsidiary of Group, in exchange for 1,773.214 preferred shares of Preferred Holdings with a $1,000 thousand par value and ~~1.75%~~1.75% annual dividend rate. After the exchange, Holdings no longer holds any shares or has any ownership interest in Group.

Holdings has reported ~~both its Parent shares and~~the preferred shares in Preferred Holdings, as other invested assets, fair value, in the consolidated balance sheets with changes in fair value re-measurement recorded in net realized capital gains (losses) in the consolidated statements of operations and comprehensive income (loss). The following table presents the dividends received on the preferred shares of Preferred Holdings and on the Parent shares that are reported as net investment income in the consolidated statements of operations and comprehensive income (loss) for the period indicated.

	Three Months Ended
	March 31,
(Dollars in thousands)	2020		2019
Dividends received on preferred stock of affiliate	$	7,758	$	7,758

Three Months Ended Six Months Ended
June 30, June 30,
(Dollars in thousands) 2019 2018 2019 2018
Dividends received on preferred stock of affiliate $ 7,758 $ 7,758 $ 15,516 $ 15,516

Affiliated Companies

Effective December 31, 2018, Holdings entered into a $300,000 thousand long-term promissory note agreement with Bermuda Re. The note was repaid in May, 2019. This transaction was presented as a Note

Payable – Affiliated in the consolidated balance sheets of Holdings as of December 31, 2018. Interest expense of ~~$1,356~~$0 thousand and ~~$3,658~~$2,303 thousand was recorded by Holdings for the three ~~and six~~ months ended ~~June 30,~~March 31, 2020 and 2019, respectively.

Effective October 1, 2018, Holdings Ireland made a capital contribution of Global Services, an affiliated entity, to Holdings. Global Services had an equity value of $227,253 thousand at the time of contribution and that value is classified as additional paid in capital in the Company’s consolidated balance ~~sheet as of December 31, 2018.~~

sheets.

Affiliates

The table below represents affiliated quota share reinsurance agreements ("whole account quota share") for all new and renewal business for the indicated coverage period:

(Dollars in thousands)
						Single
		Percent		Assuming		Occurrence		Aggregate
Coverage Period	Ceding Company	Ceded		Company	Type of Business	Limit		Limit
01/01/2010-12/31/2010	Everest Re	44.0	%	Bermuda Re	property / casualty business	150,000		325,000
01/01/2011-12/31/2011	Everest Re	50.0	%	Bermuda Re	property / casualty business	150,000		300,000
01/01/2012-12/31/2014	Everest Re	50.0	%	Bermuda Re	property / casualty business	100,000		200,000
01/01/2015-12/31/2016	Everest Re	50.0	%	Bermuda Re	property / casualty business	162,500		325,000
01/01/2017-12/31/2017	Everest Re	60.0	%	Bermuda Re	property / casualty business	219,000		438,000
01/01/2010-12/31/2010	Everest Re- Canadian Branch	60.0	%	Bermuda Re	property business	350,000	⁽¹⁾	-
01/01/2011-12/31/2011	Everest Re- Canadian Branch	60.0	%	Bermuda Re	property business	350,000	⁽¹⁾	-
01/01/2012-12/31/2012	Everest Re- Canadian Branch	75.0	%	Bermuda Re	property / casualty business	206,250	⁽¹⁾	412,500	⁽¹⁾
01/01/2013-12/31/2013	Everest Re- Canadian Branch	75.0	%	Bermuda Re	property / casualty business	150,000	⁽¹⁾	412,500	⁽¹⁾
01/01/2014-12/31/2017	Everest Re- Canadian Branch	75.0	%	Bermuda Re	property / casualty business	262,500	⁽¹⁾	412,500	⁽¹⁾
01/01/2012-12/31/2017	Everest Canada	80.0	%	Everest Re- Canadian Branch	property business	-		-

(1) Amounts shown are Canadian dollars.

(Dollars in thousands)
Percent Assuming Single Aggregate
Coverage Period Ceding Company Ceded Company Type of Business Occurrence Limit Limit

01/01/2010-12/31/2010 Everest Re 44.0% Bermuda Re property / casualty business 150,000 325,000

01/01/2011-12/31/2011 Everest Re 50.0% Bermuda Re property / casualty business 150,000 300,000

01/01/2012-12/31/2014 Everest Re 50.0% Bermuda Re property / casualty business 100,000 200,000

01/01/2015-12/31/2016 Everest Re 50.0% Bermuda Re property / casualty business 162,500 325,000

01/01/2017-12/31/2017 Everest Re 60.0% Bermuda Re property / casualty business 219,000 438,000

01/01/2010-12/31/2010 Everest Re- Canadian Branch 60.0% Bermuda Re property business 350,000
⁽¹⁾
-
01/01/2011-12/31/2011 Everest Re- Canadian Branch 60.0% Bermuda Re property business 350,000
⁽¹⁾
-
01/01/2012-12/31/2012 Everest Re- Canadian Branch 75.0% Bermuda Re property / casualty business 206,250
⁽¹⁾
412,500
⁽¹⁾
01/01/2013-12/31/2013 Everest Re- Canadian Branch 75.0% Bermuda Re property / casualty business 150,000
⁽¹⁾
412,500
⁽¹⁾
01/01/2014-12/31/2017 Everest Re- Canadian Branch 75.0% Bermuda Re property / casualty business 262,500
⁽¹⁾
412,500
⁽¹⁾

01/01/2012-12/31/2017 Everest Canada 80.0% Everest Re- Canadian Branch property business - -

⁽¹⁾
Amounts shown are Canadian dollars.

Effective January 1, 2018, Everest Re entered into a twelve month whole account aggregate stop loss reinsurance contract (“stop loss agreement”) with Bermuda Re. The stop loss agreement provides coverage for ultimate net losses on applicable net earned premiums above a retention level, subject to certain other coverage limits and conditions. The stop loss agreement was renewed effective January 1, 2019.

In addition, Everest Re entered into a property catastrophe excess of loss reinsurance contract with Bermuda Re, effective January 1, 2019. The contract provides $100,000 thousand of reinsurance coverage for property catastrophe losses above certain attachment points.

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

(Dollars in thousands)
Effective	Transferring	Assuming		% of Business or		Covered Period
Date	Company	Company		Amount of Transfer		of Transfer
10/01/2001	Everest Re (Belgium Branch)	Bermuda Re		100	%	All years
10/01/2008	Everest Re	Bermuda Re	$	747,022		01/01/2002-12/31/2007
12/31/2017	Everest Re	Bermuda Re	$	970,000		All years

(Dollars in thousands)

Effective Transferring Assuming % of Business or Covered Period
Date Company Company Amount of Transfer of Transfer

10/01/2001

Everest Re (Belgium Branch)

Bermuda Re

100
%
All years
10/01/2008

Everest Re

Bermuda Re

$
747,022
01/01/2002-12/31/2007
12/31/2017

Everest Re

Bermuda Re

$
970,000
All years

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

The following tables summarize the premiums and losses ceded by the Company to Bermuda Re and Everest International, respectively, and premiums and losses assumed by the Company from Everest Canada and Lloyd’s syndicate 2786 for the periods indicated:

	Three Months Ended
Bermuda Re	March 31,
(Dollars in thousands)	2020		2019
Ceded written premiums	$	30,500	$	51,473
Ceded earned premiums		30,500		52,524
Ceded losses and LAE		(22,159)		11,733

	Three Months Ended
Everest International	March 31,
(Dollars in thousands)	2020		2019
Ceded written premiums	$	-	$	-
Ceded earned premiums		-		-
Ceded losses and LAE		22		10

	Three Months Ended
Everest Canada	March 31,
(Dollars in thousands)	2020		2019
Assumed written premiums	$	236	$	-
Assumed earned premiums		39		-
Assumed losses and LAE		1,598		(1,601)

Three Months Ended Six Months Ended
Bermuda Re
June 30, June 30,
(Dollars in thousands) 2019 2018 2019 2018
Ceded written premiums

$
19,534

$
142,971

$
71,007

$
275,291

Ceded earned premiums

16,598

148,073

69,122

284,231

Ceded losses and LAE

(3,417
)

(157,443
)

8,316

36,108

	Three Months Ended
Lloyd's Syndicate 2786	March 31,
(Dollars in thousands)	2020		2019
Assumed written premiums	$	(3,031)	$	(9,209)
Assumed earned premiums		(2,822)		(18,827)
Assumed losses and LAE		814		(7,918)

Three Months Ended Six Months Ended
Everest International
June 30, June 30,
(Dollars in thousands) 2019 2018 2019 2018
Ceded written premiums

$
-

$
-

$
-

$
-

Ceded earned premiums

-

-

-

-

Ceded losses and LAE

(46
)

(357
)

(36
)

(357
)

Three Months Ended Six Months Ended
Everest Canada
June 30, June 30,
(Dollars in thousands) 2019 2018 2019 2018
Assumed written premiums

$
-

$
-

$
-

$
-

Assumed earned premiums

-

-

-

-

Assumed losses and LAE

2,296

373

695

3,346

Three Months Ended Six Months Ended
Lloyd's Syndicate 2786
June 30, June 30,
(Dollars in thousands) 2019 2018 2019 2018
Assumed written premiums

$
483

$
2,421

$
(8,726
)

$
(261
)
Assumed earned premiums

1,596

6,064

(17,231
)

10,950

Assumed losses and LAE

4,391

1,441

(3,527
)

8,026

In 2013, Group established Mt. Logan Re, which is a Class 3 insurer based in Bermuda. Mt. Logan Re then established separate segregated accounts for its business activity, which invest in a diversified set of catastrophe exposures.

The following table summarizes the premiums and losses that are ceded by the Company to Mt. Logan Re segregated accounts and assumed by the Company from Mt. Logan Re segregated accounts.

	Three Months Ended
Mt. Logan Re Segregated Accounts	March 31,
(Dollars in thousands)	2020		2019
Ceded written premiums	$	95,350	$	63,223
Ceded earned premiums		79,855		44,822
Ceded losses and LAE		37,465		34,623
Assumed written premiums		-		-
Assumed earned premiums		-		-
Assumed losses and LAE		-		-

Three Months Ended Six Months Ended
Mt. Logan Re Segregated Accounts
June 30, June 30,
(Dollars in thousands) 2019 2018 2019 2018
Ceded written premiums

$
51,289

$
40,622

$
114,512

$
101,439

Ceded earned premiums

61,812

54,885

106,634

104,975

Ceded losses and LAE

30,159

92,100

64,781

107,907

Assumed written premiums

-

1,604

-

4,647

Assumed earned premiums

-

1,604

-

4,647

Assumed losses and LAE

-

-

-

-

~~14.~~15. RETIREMENT BENEFITS

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

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

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

Pension Benefits	Three Months Ended
	March 31,
(Dollars in thousands)	2020		2019
Service cost	$	4,011	$	2,276
Interest cost		2,483		2,930
Expected return on plan assets		(5,197)		(5,016)
Amortization of net (income) loss		1,213		1,601
Settlement charge		-		104
Net periodic benefit cost	$	2,510	$	1,895

Other Benefits	Three Months Ended
	March 31,
(Dollars in thousands)	2020		2019
Service cost	$	141	$	286
Interest cost		215		295
Amortization of prior service cost		(48)		(144)
Amortization of net (income) loss		-		-
Net periodic benefit cost	$	308	$	437

(Some amounts may not reconcile due to rounding.)

Pension Benefits
Three Months Ended Six Months Ended
June 30, June 30,
(Dollars in thousands) 2019 2018 2019 2018
Service cost

$
2,276

$
2,977

$
4,553

$
5,954

Interest cost

2,930

2,585

5,860

5,170

Expected return on plan assets

(5,016
)

(3,670
)

(10,031
)

(7,341
)
Amortization of net (income) loss

1,601

2,237

3,203

4,473

FAS 88 settlement charge

104

-

208

-

Net periodic benefit cost

$
1,895

$
4,129

$
3,793

$
8,256

Other Benefits
Three Months Ended Six Months Ended
June 30, June 30,
(Dollars in thousands) 2019 2018 2019 2018
Service cost

$
286

$
446

$
573

$
893

Interest cost

295

307

590

614

Amortization of prior service cost

(144
)

(33
)

(289
)

(66
)
Amortization of net (income) loss

-

94

-

188

Net periodic benefit cost

$
437

$
814

$
874

$
1,629

(Some amounts may not reconcile due to rounding.)

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

The Company did not make any contributions to the qualified pension benefit plan for the three ~~and six~~ months ended ~~June 30,~~March 31, 2020 and 2019, ~~and 2018.~~

~~15.~~respectively.

16. INCOME TAXES

The Company is domiciled in the United States and has subsidiaries domiciled within the United States with significant branches in Canada and Singapore. The Company’s non-U.S. branches are subject to income taxation at varying rates in their respective domiciles.

The Company generally applies the estimated annual effective tax rate approach for calculating its tax provision for interim periods as prescribed by ASC 740-270, Interim Reporting. Under the estimated annual effective tax rate approach, the estimated annual effective tax rate is applied to the interim year-to-date pre-tax income/loss to determine the income tax expense or benefit for the year-to-date period. If the annual effective tax rate approach produces a year-to-date tax benefit which exceeds the amount which is estimated to be recoverable for the full year, then the tax benefit for the interim reporting period will be limited as prescribed under ASC 740-270 to the estimated recoverable based on the year-to-date result. The tax expense or benefit for the quarter represents the difference between the year-to-date tax expense or benefit for the current year-to-date period less such amount for the immediately preceding year-to-date period. Management considers the impact of all known events in its estimation of the Company’s annual pre-tax income/loss and effective tax rate.

~~16.~~

17. SUBSEQUENT EVENTS

The Company has evaluated known recognized and non-recognized subsequent events. The Company does not have any subsequent events to report.

18. REVISIONS TO FINANCIAL STATEMENTS

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

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

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

CONSOLIDATED STATEMENTS OF OPERATIONS	Three Months Ended March 31, 2019
AND COMPREHENSIVE INCOME (LOSS):	As Previously		Impact of
	Reported		Revisions		As Revised
(Dollars in thousands)
Revenues:
Other income (expense)		(1,214)		484		(730)
Total revenues	$	1,488,830	$	484	$	1,489,314

INCOME (LOSS) BEFORE TAXES	$	314,655	$	484	$	315,139
Income tax expense (benefit)		63,429		102		63,531

NET INCOME (LOSS)	$	251,226	$	382	$	251,608

COMPREHENSIVE INCOME (LOSS)	$	349,374	$	382	$	349,756

CONSOLIDATED STATEMENTS OF	Three Months Ended March 31, 2019
CHANGES IN STOCKHOLDER'S EQUITY	As Previously		Impact of
	Reported		Revisions		As Revised

(Dollars in thousands)
RETAINED EARNINGS:
Balance, January 1	$	4,070,604	$	(7,908)	$	4,062,696
Net income (loss)		251,226		382		251,608
Balance, March 31		4,321,830		(7,524)		4,314,306

CONSOLIDATED STATEMENTS OF CASH FLOWS	Three Months Ended March 31, 2019
	As Previously		Impact of
	Reported		Revisions		As Revised
(Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	251,226	$	382	$	251,608
Decrease (increase) in funds held by reinsureds, net		(13,877)		(484)		(14,361)
Decrease (increase) in income taxes		94,631		102		94,733

ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

Industry Conditions.

The worldwide reinsurance and insurance businesses are highly competitive, as well as cyclical by product and market. As such, financial results tend to fluctuate with periods of constrained availability, higher rates and stronger profits followed by periods of abundant capacity, lower rates and constrained profitability. Competition in the types of reinsurance and insurance business that we underwrite is based on many factors, including the perceived overall financial strength of the reinsurer or insurer, ratings of the reinsurer or insurer by A.M. Best and/or Standard & Poor’s, underwriting expertise, the jurisdictions where the reinsurer or insurer is licensed or otherwise authorized, capacity and coverages offered, premiums charged, other terms and conditions of the reinsurance and insurance business offered, services offered, speed of claims payment and reputation and experience in lines written. Furthermore, the market impact from these competitive factors related to reinsurance and insurance is generally not consistent across lines of business, domestic and international geographical areas and distribution channels.

~~We compete~~

The Company competes in the ~~U.S. and international~~global reinsurance and insurance markets with numerous global competitors. ~~Our~~The Company’s competitors include independent reinsurance and insurance companies, subsidiaries or affiliates of established worldwide insurance companies, reinsurance departments of certain insurance companies, domestic and international underwriting operations, including underwriting syndicates at Lloyd’s of London and certain government sponsored risk transfer vehicles. Some of these competitors have greater financial resources than we do and have established long term and continuing business relationships, which can be a significant competitive advantage. In addition, the lack of strong barriers to entry into the reinsurance business and recently, the securitization of reinsurance and insurance risks through capital markets provide additional sources of potential reinsurance and insurance capacity and competition.

Worldwide insurance and reinsurance market conditions continued to be ~~very competitive, particularly in the property catastrophe and casualty reinsurance lines of business.~~competitive. Generally, there was ample insurance and reinsurance capacity relative to demand, as well as, additional capital from the capital markets through insurance linked financial instruments. These financial instruments such as side cars, catastrophe bonds and collateralized reinsurance funds, provide capital markets with access to insurance and reinsurance risk exposure. The capital markets demand for these products is being primarily driven by the current low interest ~~rate~~ environment and the desire to achieve greater risk diversification and potentially higher returns on their investments. This increased competition is generally having a negative impact on rates, terms and conditions; however, the impact varies widely by market and coverage.

~~Rates tend~~

The industry is currently dealing with the impacts of a global pandemic, COVID-19.�� Globally, many countries have mandated that their citizens remain at home and non-essential businesses have been physically closed. We have closed our physical offices; however, we have activated our operational resiliency plan across our global footprint and all of our critical operations are functioning effectively from remote locations. We continue to ~~fluctuate by specific region~~service and ~~products, particularly areas recently~~meet the needs of our clients while ensuring the safety and health of our employees and customers.

The pandemic has caused significant volatility in the global financial markets. Interest rates plummeted, credit spreads widened and the equity markets lost value. We saw our fixed maturity and equity portfolios decline in value; however, some of the declines reflected in our March 31, 2020 financial statements have already recovered in April. Nevertheless, the lack of business activity may lead to an increase in bankruptcies and corresponding credit losses. Our other invested assets are comprised primarily of limited partnership investments. The change in limited partnership values are generally recorded on a quarter lag, As a result, the impact on the limited partnership values during the first quarter volatility will not be reflected in our results until the second quarter of 2020.

There will also be a negative impact on the industry underwriting results. With the closing of non-essential businesses, there has been a significant decline in business activity. To the extent that premiums are based on business activity, there will be a decline in premium volume. Incurred losses from the pandemic will be impacted by ~~large catastrophic events. There were numerous natural catastrophes in 2018 with total industry~~the duration of the event and will vary by line of business and geographical location. For the quarter ended March 31, 2020, our underwriting results include $35.7 million of estimated losses ~~estimated~~related to ~~be $90 billion. The costliest event was~~ the ~~Camp Wildfire in California, the deadliest and most destructive California fire~~pandemic. We anticipate this pandemic could have a meaningful impact 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. These catastrophe losses included an unprecedented series of catastrophes in the third quarter of 2017 with Hurricanes Harvey, Irma and Maria,our revenue, as well as net

and operating income in future quarters as a ~~significant earthquake in Mexico City. Additional catastrophe events occurred in~~result of reinsurance and insurance claims due to the ~~fourth quarter~~pandemic and resulting macro-economic market conditions.

Many regulators have issued moratoriums on the cancellation of ~~2017~~policies for the non-payment of premiums and also on non-renewals. We are complying with the ~~wild fires~~various regulatory requests for accommodations to policyholders during this difficult period. The moratoriums combined with the forced closure of businesses may lead to an increase in ~~California and Hurricanes Nate and Ophelia. During 2016, catastrophe losses included~~uncollectible premium expense.

Prior to the ~~Fort McMurray Canadian wildfire, Hurricane Matthew which affected~~pandemic, there was a large area of the Caribbean and southeastern United States, storms and an earthquake in Ecuador. While the future impact on market conditions from these catastrophes cannot be determined at this time,growing industry consensus that there ~~has been~~was some firming inof (re)insurance rates for the ~~markets~~areas impacted by the ~~catastrophes, as well, improvements in rate~~recent catastrophes. Rates also appeared to be firming in some ~~other reinsurance lines, including~~of the casualty ~~lines, and also improvements in the insurance property and casualty lines.~~

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. Recent growth is coming from highly diversified areas including newly launched lines of business, particularly in the casualty lines that had seen significant losses such as excess casualty and directors’ and officers’ liability. Other casualty lines were experiencing modest rate increase, while some lines such as workers’ compensation were experiencing softer market conditions. It is too early to tell what will be the impact on pricing conditions but it is likely to change depending on the line of business and geography.

While we are unable to predict the full impact the pandemic will have on the insurance industry as it continues to have a negative impact on the global economy, we are well as, product and geographic expansion in existing lines of business. We are building a world-class insurance platform capable of offering products across lines and geographies, complementing our leading global reinsurance franchise.

Overall, we believe that given our size, strong ratings, distribution system, reputation, expertise and capital market vehicle activity the current marketplace conditions provide profit opportunities. Wepositioned to continue to ~~employ~~service our ~~strategy~~clients. Our capital position remains a source of ~~targeting business that offers the greatest profit potential, while maintaining balance~~strength, with high quality invested assets, significant liquidity, low financial leverage, and ~~diversification in our overall portfolio.~~a low operating expense ratio. Our diversified global platform with its broad mix of products, distribution and geography is resilient.

Financial Summary.

We monitor and evaluate our overall performance based upon financial results. The following table displays a summary of the consolidated net income (loss), ratios and stockholder’s equity for the periods indicated:

	Three Months Ended				Percentage
	March 31,				Increase/
(Dollars in millions)	2020		2019		(Decrease)
Gross written premiums	$	1,975.0	$	1,684.9	17.2%
Net written premiums		1,638.7		1,392.2	17.7%

REVENUES:
Premiums earned	$	1,494.0	$	1,270.5	17.6%
Net investment income		74.2		84.5	-12.2%
Net realized capital gains (losses)		256.9		135.1	90.2%
Other income (expense)		(4.5)		(0.7)	NM
Total revenues		1,820.6		1,489.3	22.2%

CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses		1,029.5		796.1	29.3%
Commission, brokerage, taxes and fees		323.1		288.2	12.1%
Other underwriting expenses		101.2		78.4	29.1%
Corporate expense		3.7		1.7	125.4%
Interest, fee and bond issue cost amortization expense		7.5		9.8	-24.1%
Total claims and expenses		1,465.0		1,174.2	24.8%

INCOME (LOSS) BEFORE TAXES		355.6		315.1	12.8%
Income tax expense (benefit)		38.9		63.5	-38.7%
NET INCOME (LOSS)	$	316.6	$	251.6	25.8%

RATIOS:					Point Change
Loss ratio		68.9%		62.7%	6.2
Commission and brokerage ratio		21.6%		22.7%	(1.1)
Other underwriting expense ratio		6.8%		6.1%	0.7
Combined ratio		97.3%		91.5%	5.8



(Dollars in millions)
Balance sheet data:
Total investments and cash	$	12,242.4	$	11,956.3	2.4%
Total assets		20,030.8		19,706.2	1.6%
Loss and loss adjustment expense reserves		10,271.2		10,209.5	0.6%
Total debt		632.2		633.8	-0.3%
Total liabilities		14,034.0		13,848.8	1.3%
Stockholder's equity		5,996.7		5,857.4	2.4%

(Some amounts may not reconcile due to rounding)
(NM, not meaningful)

Three Months Ended Percentage Six Months Ended Percentage
June 30, Increase/ June 30, Increase/
(Dollars in millions)
2019 2018 (Decrease) 2019 2018 (Decrease)
Gross written premiums

$
1,688.0

$
1,632.3

3.4
%

$
3,372.9

$
3,098.5

8.9
%
Net written premiums

1,319.9

1,190.4

10.9
%

2,712.1

2,297.4

18.1
%

REVENUES:

Premiums earned

$
1,375.6

$
1,179.8

16.6
%

$
2,646.1

$
2,295.8

15.3
%
Net investment income

90.7

72.1

25.9
%

175.2

142.0

23.4
%
Net realized capital gains (losses)

142.6

(42.3
)
NM
277.6

(102.5
)
NM
Other income (expense)

(3.8
)

77.7

-104.9
%

(5.0
)

2.8
NM
Total revenues

1,605.0

1,287.3

24.7
%

3,093.9

2,338.2

32.3
%

CLAIMS AND EXPENSES:

Incurred losses and loss adjustment expenses

843.2

1,228.8

-31.4
%

1,639.3

1,942.0

-15.6
%
Commission, brokerage, taxes and fees

316.8

288.0

10.0
%

605.0

544.5

11.1
%
Other underwriting expenses

83.3

74.2

12.3
%

161.7

151.6

6.7
%
Corporate expense

2.5

1.5

66.5
%

4.2

5.1

-18.4
%
Interest, fee and bond issue cost amortization expense

9.7

7.6

27.0
%

19.5

14.9

30.6
%
Total claims and expenses

1,255.5

1,600.1

-21.5
%

2,429.7

2,658.1

-8.6
%

INCOME (LOSS) BEFORE TAXES

349.5

(312.8
)

-211.7
%

664.2

(319.9
)
NM
Income tax expense (benefit)

67.6

(47.4
)

-242.7
%

131.1

(42.4
)
NM
NET INCOME (LOSS)

$
281.9

$
(265.4
)

-206.2
%

$
533.1

$
(277.6
)
NM

RATIOS:
Point Change Point Change
Loss ratio

61.3
%

104.1
%

(42.8
)

62.0
%

84.6
%

(22.6
)
Commission and brokerage ratio

23.0
%

24.4
%

(1.4
)

22.9
%

23.7
%

(0.8
)
Other underwriting expense ratio

6.1
%

6.3
%

(0.2
)

6.1
%

6.6
%

(0.6
)
Combined ratio

90.4
%

134.8
%

(44.4
)

90.9
%

114.9
%

(24.0
)

At At Percentage
June 30, December 31, Increase/
(Dollars in millions) 2019 2018 (Decrease)
Balance sheet data:

Total investments and cash

$
11,305.7

$
10,707.4

5.6
%
Total assets

19,235.8

18,688.2

2.9
%
Loss and loss adjustment expense reserves

10,148.4

10,167.0

-0.2
%
Total debt

633.7

933.6

-32.1
%
Total liabilities

13,492.1

13,643.5

-1.1
%
Stockholder's equity

5,743.7

5,044.7

13.9
%

(Some amounts may not reconcile due to rounding)

(NM, not meaningful)

Revenues.

Premiums. Gross written premiums increased by ~~3.4%~~17.2% to ~~$1,688.0~~$1,975.0 million for the three months ended ~~June 30, 2019,~~March 31, 2020, compared to ~~$1,632.3~~$1,684.9 million for the three months ended ~~June 30, 2018,~~March 31, 2019, reflecting a ~~$92.1~~$135.0 million, or ~~15.8%~~25.4%, increase in our insurance business and a ~~$36.4~~$155.1 million, or 3.5% decrease in our reinsurance business. The rise in insurance premiums was primarily due to increases in many lines of business, including property, casualty, energy and specialty lines. The decrease in reinsurance premiums was mainly due to decreases in treaty property writings, partially offset by an increase in treaty casualty writings. Gross written premiums increased by 8.9% to $3,372.9 million for the six months ended June 30, 2019, compared to $3,098.5 million for the six months ended June 30, 2018, reflecting a $168.9 million, or

~~16.3%, increase in our insurance business and a $105.5 million, or 5.1%~~13.4%, increase in our reinsurance business. The rise in insurance premiums was primarily due to increases in many lines of business, including property, casualty, energy, specialty lines and accident and health. The increase in reinsurance premiums was mainly due to anthe increase in treaty casualty writings, ~~partially offset by a decline in~~treaty property business and facultative business.

Net written premiums increased by ~~10.9%~~17.7% to ~~$1,319.9~~$1,638.7 million for the three months ended ~~June 30, 2019,~~March 31, 2020, compared to ~~$1,990.4~~$1,392.2 million for the three months ended ~~June 30, 2018, and increased by 18.1% to $2,712.1 million for the six months ended June 30,~~March 31, 2019, ~~compared to $2,297.4 million for the six months ended June 30, 2018. The difference between~~which is consistent with the change in gross written premiums compared to the change in net written premiums is primarily due to the impact of changes in affiliated reinsurance contracts. Premiums ceded to Bermuda Re during the three months ended June 30, 2019 were $19.5 million compared with $143.0 million during the three months ended June 30, 2018. Premiums ceded to Bermuda Re during the six months ended June 30, 2019 were $71.0 million compared with $275.3 million during the six months ended June 30, 2018.premiums. Premiums earned increased by ~~16.6%~~17.6% to ~~$1,375.6~~$1,494.0 million for the three months ended ~~June 30, 2019,~~March 31, 2020, compared to ~~$1,179.8~~$1,270.5 million for the three months ended ~~June 30, 2018, and increased by 15.3% to $2,646.1 million for the six months ended June 30, 2019, compared to $2,295.8 million for the six months ended 2018.~~March 31, 2019. The change in premiums earned relative to net written premiums is the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.

Net Investment Income. Net investment income ~~increased 25.9%~~decreased 12.2% to ~~$90.7~~$74.2 million for the three months ended ~~June 30, 2019~~March 31, 2020 compared with net investment income of ~~$72.1~~$84.5 million for the three months ended June 30, 2018. Net investment income increased 23.4% to $175.2 million for the six months ended June 30, 2019 compared with net investment income of $142.0 million for the six months ended June 30, 2018.March 31, 2019. Net pre-tax investment income as a percentage of average invested assets was ~~3.3%~~2.6% and 3.1% for the three months ended ~~June 30,~~March 31, 2020 and 2019, ~~compared to 3.2% for the three months ended June 30, 2018,~~respectively. The decrease in income and ~~was 3.2% for the six months ended June 30, 2019 and June 30, 2018. The increase in income~~yield was primarily the result of lower income from other invested assets, partially offset by higher income from our growing fixed maturity portfolio.

Net Realized Capital Gains (Losses). Net realized capital gains were ~~$142.6~~$256.9 million and ~~net realized capital losses were $42.3~~$135.1 million for the three months ended ~~June 30,~~March 31, 2020 and 2019, ~~and 2018,~~ respectively. The net realized capital gains of ~~$142.6~~$256.9 million ~~for the three months ended June 30, 2019~~in 2020 were comprised of ~~$150.7~~$319.7 million of gains from fair value re-measurements, partially offset by ~~$4.9 million of other than temporary impairments and $3.3 million of net losses from sales of investments.~~ ~~The net realized capital losses of $42.3 million for the three months ended June 30, 2018 were comprised of $39.1 million of losses from fair value re-measurements, $2.3~~$50.7 million of losses from sales of investments and ~~$0.9~~$12.1 million of ~~other-than-temporary investments.~~

~~Net realized capital gains were $277.6 million and net realized capital losses were $102.5 million~~ allowances for ~~the six months ended June 30, 2019~~credit losses. ~~and 2018, respectively.~~ The net realized capital gains of ~~$277.6~~$135.1 million ~~for the six months ended June 30,~~in 2019 were comprised of ~~$279.2~~$128.5 million of gains from fair value re-measurements and ~~$5.6~~$8.9 million of ~~net~~ gains from sales of investments, partially offset by ~~$7.2~~$2.3 million of other-than-temporary impairments.

~~The net realized capital losses of $102.5 million for the six months ended June 30, 2018 were comprised of $102.9 million of losses from fair value re-measurements and $0.9 million of other-than-temporary investments, partially offset by $1.3~~ ~~million of gains from sales of investments.~~

Other Income (Expense). We recorded other expense of ~~$3.8~~$4.5 million and ~~other income of $77.7~~$0.7 million for the three months ended ~~June 30,~~March 31, 2020 and 2019, ~~and 2018, respectively. We recorded other expense of $5.0 million and other income of $2.8 million~~ ~~for the six months ended June 30, 2019 and 2018, respectively~~.respectively. The ~~changes were~~change was primarily the result of fluctuations in foreign currency exchange ~~rates and changes in deferred gains under retroactive reinsurance agreements.~~

rates.

Claims and Expenses.

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

	Three Months Ended March 31,
	Current		Ratio %/		Prior		Ratio %/		Total		Ratio %/
(Dollars in millions)	Year		Pt Change		Years		Pt Change		Incurred		Pt Change
2020
Attritional	$	996.4	66.7%		$	(1.1)	-0.1%		$	995.3	66.6%
Catastrophes		30.0	2.0%			4.2	0.3%			34.2	2.3%
Total	$	1,026.4	68.7%		$	3.1	0.2%		$	1,029.5	68.9%
2019
Attritional	$	763.8	60.1%		$	-	0.0%		$	763.8	60.1%
Catastrophes		25.0	2.0%			7.3	0.6%			32.3	2.6%
Total	$	788.8	62.1%		$	7.3	0.6%		$	796.1	62.7%
Variance 2020/2019
Attritional	$	232.6	6.6	pts	$	(1.1)	(0.1)	pts	$	231.5	6.5	pts
Catastrophes		5.0	-	pts		(3.1)	(0.3)	pts		1.9	(0.3)	pts
Total	$	237.6	6.6	pts	$	(4.2)	(0.4)	pts	$	233.4	6.2	pts

Three Months Ended June 30,
Current Ratio %/ Prior Ratio %/ Total Ratio %/
(Dollars in millions) Year Pt Change Years Pt Change Incurred Pt Change
2019

Attritional

$
826.5

60.1
%

$
(13.8
)

-1.0
%

$
812.7

59.1
%

Catastrophes

(0.1
)

0.0
%

30.6

2.2
%

30.5

2.2
%

Total

$
826.4

60.1
%

$
16.8

1.2
%

$
843.2

61.3
%


2018

Attritional

$
673.5

57.0
%

$
(3.5
)

-0.3
%

$
670.0

56.7
%

Catastrophes

64.6

5.5
%

494.2

41.9
%

558.8

47.4
%

Total

$
738.1

62.5
%

$
490.7

41.6
%

$
1,228.8

104.1
%


Variance 2019/2018

Attritional

$
153.0

3.1

pts

$
(10.3
)

(0.7
)
pts

$
142.7

2.4

pts
Catastrophes

(64.7
)

(5.5
)
pts

(463.6
)

(39.7
)
pts

(528.3
)

(45.2
)
pts
Total

$
88.3

(2.4
)
pts

$
(473.9
)

(40.4
)
pts

$
(385.6
)

(42.8
)
pts

Six Months Ended June 30,
Current Ratio %/ Prior Ratio %/ Total Ratio %/
(Dollars in millions) Year Pt Change Years Pt Change Incurred Pt Change
2019

Attritional

$
1,590.4

60.1
%

$
(13.8
)

-0.5
%

$
1,576.5

59.6
%

Catastrophes

24.9

0.9
%

37.9

1.4
%

62.8

2.4
%

Total

$
1,615.3

61.0
%

$
24.0

0.9
%

$
1,639.3

62.0
%


2018

Attritional

$
1,386.4

60.4
%

$
(3.2
)

-0.1
%

$
1,383.2

60.3
%

Catastrophes

64.6

2.8
%

494.2

21.5
%

558.8

24.3
%

Total

$
1,451.0

63.2
%

$
491.0

21.4
%

$
1,942.0

84.6
%


Variance 2019/2018

Attritional

$
204.0

(0.3
)
pts

$
(10.6
)

(0.4
)
pts

$
193.3

(0.7
)
pts
Catastrophes

(39.7
)

(1.9
)
pts

(456.3
)

(20.1
)
pts

(496.0
)

(21.9
)
pts
Total

$
164.3

(2.2
)
pts

$
(467.0
)

(20.5
)
pts

$
(302.7
)

(22.6
)
pts

(Some amounts may not reconcile due to rounding.)

Incurred losses and LAE ~~decreased~~increased by ~~31.4%~~29.3% to ~~$843.2~~$1,029.5 million for the three months ended ~~June 30, 2019~~March 31, 2020 compared to ~~$1,228.8~~$796.1 million for the three months ended ~~June 30, 2018,~~March 31, 2019, primarily due to ~~$463.6~~an increase of $232.6 million in current year attritional losses, related primarily to $35.7 million of ~~less unfavorable development on prior year catastrophe~~ losses from the COVID-19 pandemic and ~~a decrease~~the impact of the increase in premiums earned. The current year catastrophe losses of $64.7 million, partially offset by an increase in current year attritional losses of $153.0 million primarily due to the increase in premiums earned. There were no current year catastrophe losses for the three months ended June 30, 2019. The $494.2 million of unfavorable development on prior years catastrophe losses, for the three months ended June 30, 2018 mainly related to Hurricanes Harvey, Irma and Maria. 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. ~~The current year catastrophe~~ ~~losses of $64.6~~$30.0 million for the three months ended ~~June 30, 2018~~March 31, 2020 related to ~~Cyclone Mekunu~~the Nashville tornadoes ($~~50.0~~10.0 million), Australia East Coast storms ($10.0 million) and the ~~U.S. winter storms~~Australia fires ($~~14.6~~10.0 million).

Incurred losses and LAE decreased by 15.6% to $1,639.3 million for the six months ended June 30, 2019 compared to $1,942.0 million for the six months ended June 30, 2018, primarily due to $456.3 million of less unfavorable development on prior year catastrophe losses and a decrease in current year catastrophe losses of $39.7 million, partially offset by an increase in current year attritional losses of $204.0 million. The current year catastrophe losses of $24.9 million for the six months ended June 30, 2019 are primarily due to Townsville monsoon in Australia. The $494.2 million of unfavorable development on prior years catastrophe losses, for the six months ended June 30, 2018 mainly related to Hurricanes Harvey, Irma and Maria. 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. ~~The current year catastrophe losses of $64.6 million for the six months ended June 30, 2018 related to Cyclone Mekunu ($50.0 million) and the U.S. winter storms ($14.6 million).~~

~~Commission, Brokerage, Taxes and Fees.~~ ~~Commission, brokerage, taxes and fees increased to $316.8~~$25.0 million for the three months ended ~~June 30,~~March 31, 2019 ~~compared~~related to the Townsville monsoon in Australia ($25.0 million).

Commission, Brokerage, Taxes and Fees.$~~288.0~~ Commission, brokerage, taxes and fees increased to $323.1 million for the three months ended ~~June 30, 2018.~~ ~~Commission, brokerage, taxes and fees increased~~March 31, 2020 compared to ~~$605.0~~$288.2 million for the ~~six~~three months ended ~~June 30, 2019 compared to~~ $~~544.5~~ ~~million~~ ~~for the six months ended June 30, 2018.~~March 31, 2019. The ~~increases were~~increase was mainly due to the ~~impacts~~impact of the ~~increase~~increases in premiums earned and changes in ~~the mix of business.~~affiliated reinsurance agreements.

Other Underwriting Expenses. Other underwriting expenses increased ~~slightly~~ to ~~$83.3~~$101.2 million compared to $78.4 million for the three months ended ~~June 30,~~March 31, 2020 and 2019, compared to $74.2 million for the three months ended June 30, 2018. Other underwriting expenses increased to $161.7 million for the six months ended June 30, 2019 compared to $151.6 million for the six months ended June 30, 2018. These increases were primarilyrespectively. The increase was mainly due to ~~the increase in premiums earned,~~ changes in ~~the mix~~affiliated reinsurance agreements, impact of ~~business~~increases in premium earned and costs incurred to support the ~~continued~~ expansion of the insurance business.

Corporate Expenses. Corporate expenses, which are general operating expenses that are not allocated to segments, have increased to ~~$2.5~~$3.7 million from ~~$1.5~~$1.7 million for the three months ended ~~June 30,~~March 31, 2020 and 2019, ~~and 2018, respectively, and decreased~~respectively. The increase was mainly due to ~~$4.2 million from $5.1 million for the six months ended June 30, 2019 and 2018, respectively.~~higher incentive compensation costs.

Interest, Fees and Bond Issue Cost Amortization Expense. Interest, fees and other bond amortization expense was ~~$9.7~~$7.5 million and ~~$7.6~~$9.8 million for the three months ended ~~June 30,~~March 31, 2020 and 2019, ~~and 2018, respectively. Interest, fees and other bond amortization expense was $19.5 million and $14.9 million for the six months ended June 30, 2019 and 2018,~~ respectively. The ~~change~~decrease in expense was primarily due to interest expense on the $300.0 million affiliated loan agreement with Bermuda Re ~~effective on December 31, 2018~~in 2019 and the movement in the floating interest rate related to the long term subordinated notes, which is reset quarterly per the note agreement. The floating rate was ~~4.9%~~4.1% as of ~~June 30, 2019~~March 31, 2020 compared to ~~4.7%~~5.1% as of ~~June 30, 2018.~~

March 31, 2019.

Income Tax Expense (Benefit). We had an income tax expense of ~~$67.6~~$38.9 million and ~~an income tax benefit of $47.4~~$63.5 million for the three months ended ~~June 30,~~March 31, 2020 and 2019, ~~and 2018,~~ respectively. ~~We had an income tax expense of $131.1 million and an income~~Income tax benefit or expense is primarily a function of ~~$42.4 million~~ ~~for~~ the ~~six months ended June 30, 2019~~geographic location of the Company’s pre-tax income and ~~2018, respectively.~~ the statutory tax rates in those jurisdictions. The effective tax rate (“ETR”) is primarily affected by tax-exempt investment income, foreign tax credits and dividends. Variations in ~~taxes~~the ETR generally result from changes in the relative levels of pre-tax income, including the impact of catastrophe losses and net capital gains (losses) ~~as well as changes in~~, among jurisdictions with different tax ~~exempt investment income and creditable foreign taxes.~~rates. The change in income tax expense (benefit) for the three months ended March 31, 2020compared to the three months ended March 31, 2019 was primarily due to estimated incurred losses from the ~~increase~~COVID-19 pandemic and the impact from the Coronavirus Aid, Relief and Economic Securities Act (“the CARES Act”).

The CARES Act was passed by Congress and signed into law by the President on March 27, 2020 in response to the COVID-19 pandemic. Among the provisions of the CARES Act was a special tax provision which allows companies to elect to carryback five years net ~~capital gains~~operating losses incurred in the 2018, 2019 and/or 2020 tax years. The Tax Cuts and ~~underwriting income~~ Jobs Act of 2017 had eliminated net operating loss carrybacks for most companies. The Company determined that the ~~three and six months~~special 5 year loss carryback tax provision provided a tax benefit of $31.0 million which it recorded in the quarter ended ~~June 30, 2019~~ ~~compared to~~March 31, 2020.

~~the three and six months ended June 30,~~ ~~2018.~~

Net Income (Loss).

Our net income was ~~$281.9~~$316.6 million and $251.6 million, for the three months ended ~~June 30,~~March 31, 2020 and 2019 and our net loss was $265.4 million, for the three months ended June 30, 2018 respectively. Our net income was $533.1 million for the six months ended June 30, 2019, and our net loss was $277.6 million, for the six months ended June 30, 2018 respectively. The changes were primarily driven by the financial component fluctuations explained above.

36Ratios.

~~Ratios.~~

Our combined ratio ~~decreased~~increased by ~~44.4~~5.8 points to ~~90.4%~~97.3% for the three months ended ~~June 30, 2019~~March 31, 2020 compared to ~~134.8%~~91.5% for the three months ended ~~June 30, 2018, and decreased by 24.0 points to 90.9% for the six months ended June 30, 2019 compared to 114.9% for the six months ended June 30, 2018.~~March 31, 2019. The loss ratio component ~~decreased~~increased by ~~42.8 points and 22.6~~6.2 points in ~~for the three and six months ended June 30, 2019, respectively,~~2020 over the same period last year mainly due to ~~a lower loss ratio on prior year catastrophe~~$35.7 million of losses, 2.4 points, related to the COVID-19 pandemic and changes in ~~2019 compared to 2018.~~affiliated reinsurance agreements. The commission and brokerage ratio component decreased to ~~23.0%~~21.6% for the three months ended ~~June 30, 2019~~March 31, 2020 compared to ~~24.4%~~22.7% for the three months

ended ~~June 30, 2018, and decreased to 22.9% for the six months ended June 30,~~March 31, 2019, ~~compared to 23.7% for the six months ended June 30, 2018,~~ reflecting changes in affiliated reinsurance agreements and changes in the mix of business. The other underwriting expense ratio ~~decreased slightly~~increased to 6.8% for the three months ended March 31, 2020 from 6.1% for the three months ended ~~June 30,~~March 31, 2019, ~~from 6.3% for the three months ended June 30, 2018 and decreased slightly to 6.1% for the six months ended June 30, 2019 from 6.6% for the six months ended June 30, 2018,~~ mainly due to the impact of changes in affiliated reinsurance ~~contracts and the increase in premiums earned.~~

contracts.

Stockholder's Equity.

Stockholder’s equity increased by ~~$699.0~~$139.3 million to ~~$5,743.7~~$5,996.7 million at ~~June 30, 2019~~ March 31, 2020 from ~~$5,044.7~~$5,857.4 million at December 31, ~~2018,~~2019, principally as a result of ~~$533.1~~$316.6 million of net income, ~~$161.4 million of net unrealized appreciation on investments, net of tax, $2.3~~$0.9 million of net benefit plan obligation adjustments and ~~$2.1~~$0.9 million of cumulative adjustment from the adoption of ASU-2016-13, partially offset by $149.6 million of net unrealized depreciation on investments, net of tax, and $29.6 million of net foreign currency translation adjustments.

Consolidated Investment Results

Net Investment Income.

Net investment income ~~increased~~decreased by ~~25.9%~~12.2% to ~~$90.7~~$74.2 million for the three months ended ~~June 30, 2019~~March 31, 2020 compared ~~with net investment income of $72.1~~to $84.5 million for the three months ended June 30, 2018. Net investment income increased by 23.4% to $175.2 million for the six months ended June 30, 2019 compared with net investment income of $142.0 million for the six months ended June 30, 2018.March 31, 2019. The ~~increase~~decrease in ~~income~~2020 was primarily ~~the result of~~due to lower income from other invested assets, partially offset by higher income from our growing fixed maturity portfolio.

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

	Three Months Ended
	March 31,
(Dollars in millions)	2020		2019
Fixed maturities	$	74.1	$	67.1
Equity securities		1.6		1.4
Short-term investments and cash		1.6		2.7
Other invested assets
Limited partnerships		7.0		8.1
Dividends from preferred shares of affiliate		7.8		7.8
Other		(13.1)		3.0
Gross investment income before adjustments		79.0		90.0
Funds held interest income (expense)		3.2		2.9
Interest income from Parent		1.3		-
Gross investment income		83.5		92.9
Investment expenses		9.3		(8.4)
Net investment income	$	74.2	$	84.5

(Some amounts may not reconcile due to rounding.)

Three Months Ended Six Months Ended
June 30, June 30,
(Dollars in millions) 2019 2018 2019 2018
Fixed maturities

$
65.3

$
48.5

$
132.4

$
90.9

Equity securities

2.4

3.6

3.8

8.0

Short-term investments and cash

3.2

1.3

5.9

2.2

Other invested assets

Limited partnerships
15.1

14.1

23.2

28.6

Dividends from preferred shares of affiliate
7.7

7.7

15.5

15.5

Other
3.3

1.5

6.3

4.7

Gross investment income before adjustments
97.1

76.8

187.1

150.0

Funds held interest income (expense)

1.4

0.7

4.3

3.6

Interest income from Parent

-

1.1

-

2.2

Gross investment income
98.5

78.7

191.4

155.8

Investment expenses

(7.8
)

(6.6
)

(16.1
)

(13.8
)
Net investment income

$
90.7

$
72.1

$
175.3

$
142.0

(Some amounts may not reconcile due to rounding.)

The following tables show a comparison of various investment yields for the periods indicated:

	At	At
	March 31,	December 31,
	2020	2019
Imbedded pre-tax yield of cash and invested assets	3.5%	3.5%
Imbedded after-tax yield of cash and invested assets	2.8%	2.8%

	Three Months Ended
	March 31,
	2020	2019
Annualized pre-tax yield on average cash and invested assets	2.6%	3.1%
Annualized after-tax yield on average cash and invested assets	2.1%	2.5%

At At
June 30, December 31,
2019 2018
Imbedded pre-tax yield of cash and invested assets
3.6% 3.5%
Imbedded after-tax yield of cash and invested assets
2.9% 2.8%

Three Months Ended Six Months Ended
June 30, June 30,
2019 2018 2019 2018
Annualized pre-tax yield on average cash and invested assets
3.3% 3.2% 3.2% 3.2%
Annualized after-tax yield on average cash and invested assets
2.7% 2.6% 2.6% 2.6%

Net Realized Capital Gains (Losses).

The following table presents the composition of our net realized capital gains (losses) for the periods indicated:

	Three Months Ended March 31,
(Dollars in millions)	2019		2018		Variance
Gains (losses) from sales:
Fixed maturity securities, market value
Gains	$	1.8	$	8.1	$	(6.3)
Losses		(22.8)		(4.7)		(18.1)
Total		(21.0)		3.4		(24.4)
Equity securities, fair value
Gains		2.6		5.7		(3.1)
Losses		(30.2)		(0.6)		(29.6)
Total		(27.6)		5.1		(32.7)
Other invested assets
Gains		3.0		0.4		2.6
Losses		(5.4)		-		(5.4)
Total		(2.4)		0.4		(2.8)
Short Term Investments:
Gains		0.1		-		0.1
Losses		-		-		-
Total		0.1		-		0.1
Total net realized gains (losses) from sales
Gains		7.5		14.2		(6.7)
Losses		(58.4)		(5.3)		(53.1)
Total		(50.7)		8.9		(59.6)

Allowances for credit losses:		(12.1)		-		(12.1)

Other than temporary impairments:		-		(2.3)		2.3

Gains (losses) from fair value adjustments:
Fixed maturities, fair value		(1.1)		-		(1.1)
Equity securities, fair value		(121.7)		77.8		(199.5)
Other invested assets, fair value		442.5		50.6		391.9
Total		319.7		128.5		191.2

Total net realized gains (losses)	$	256.9	$	135.1	$	121.8

(Some amounts may not reconcile due to rounding.)

Three Months Ended June 30, Six Months Ended June 30,
(Dollars in millions)
�� 2019 2018 Variance 2019 2018 Variance
Gains (losses) from sales:

Fixed maturity securities, market value
Gains
$
2.8

$
2.1

$
0.7

$
10.9

$
9.0

$
1.9

Losses
(5.0
)

(2.2
)

(2.8
)

(9.7
)

(3.0
)

(6.7
)
Total
(2.2
)

(0.1
)

(2.1
)

1.2

6.0

(4.8
)

Fixed maturity securities, fair value
Gains
0.4

-

0.4

0.4

-

0.4

Losses
-

(1.1
)

1.1

-

(1.1
)

1.1

Total
0.4

(1.1
)

1.5

0.4

(1.1
)

1.5

Equity securities, fair value
Gains
2.5

4.7

(2.2
)

8.2

7.9

0.3

Losses
(3.9
)

(6.3
)

2.4

(4.5
)

(12.0
)

7.5

Total
(1.3
)

(1.6
)

0.3

3.7

(4.1
)

7.8

Other invested assets
Gains
-

0.6

(0.6
)

0.3

0.6

(0.3
)
Losses
(0.1
)

-

(0.1
)

(0.1
)

-

(0.1
)
Total
(0.1
)

0.6

(0.7
)

0.2

0.6

(0.4
)

    Short Term Investments:

         Gains

0.1

-

0.1

0.1

-

0.1

         Losses

-

-

-

(0.0
)

-

(0.0
)
     Total

0.1

-

0.1

0.1

-

0.1

Total net realized gains (losses) from sales

Gains
5.7

7.3

(1.6
)

19.9

17.4

2.5

Losses
(9.0
)

(9.6
)

0.6

(14.3
)

(16.1
)

1.8

Total

(3.3
)

(2.3
)

(1.0
)

5.6

1.3

4.3

Other than temporary impairments:

(4.9
)

(0.9
)

(4.0
)

(7.2
)

(0.9
)

(6.3
)

Gains (losses) from fair value adjustments:

Fixed maturities, fair value
-

1.0

(1.0
)

-

1.0

(1.0
)
Equity securities, fair value
25.8

25.5

0.3

103.6

(1.5
)

105.1

Other invested assets, fair value
125.0

(65.6
)

190.6

175.6

(102.4
)

278.0

Total

150.7

(39.1
)

189.8

279.2

(102.9
)

382.1

Total net realized gains (losses)

$
142.6

$
(42.3
)

$
184.9

$
277.6

$
(102.5
)

$
380.1

(Some amounts may not reconcile due to rounding.)

38Net Realized Capital Gains (Losses).

Net realized capital gains were ~~$142.6~~$256.9 million and ~~net realized capital losses were $42.3~~$135.1 million for the three months ended ~~June 30,~~March 31, 2020 and 2019, ~~and 2018,~~ respectively. ~~For~~The net realized capital gains of $256.9 million for the three months ended ~~June 30, 2019, we recorded~~ ~~$150.7~~March 31, 2020, were comprised of $319.7 million of gains from fair value re-measurements, partially offset by ~~$4.9 million of other-than-temporary impairments and $3.3 million of net losses from sales of investments. For the three months ended~~ ~~June 30, 2018 we recorded $39.1 million of losses from fair value re-measurements, $2.3~~$50.7 million of losses from sales of investments and ~~$0.9~~$12.1 million of ~~other-than-temporary investments.~~allowances for credit losses. The ~~fixed maturity and equity sales related primarily to adjusting the portfolios for overall market changes and individual credit shifts.~~

~~Net~~net realized capital gains ~~were $277.6~~of $135.1 million ~~and net realized capital losses were $102.5 million~~ for the ~~six~~three months ended ~~June 30,~~March 31, 2019, ~~and 2018, respectively. For the six months ended June 30, 2019, we recorded~~ ~~$279.2~~ were comprised of $128.5 million of gains from fair value re-measurements and ~~$5.6~~$8.9 million of net gains from sales of investments, partially offset by ~~$7.2~~$2.3 million of other-than-temporary impairments. ~~For the six months ended June 30, 2018, we recorded~~

$~~102.9 million of losses from fair value re-measurements and $0.9 million of other-than-temporary impairments, partially offset by $1.3~~ ~~million of gains from sales of investments. The fixed maturity and equity sales related primarily to adjusting the portfolios for overall market changes and individual credit shifts.~~

Segment Results.

The ~~U.S.~~ Reinsurance operation writes worldwide property and casualty reinsurance and specialty lines of ~~business, including Marine, Aviation, Surety and A&H~~ business, on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding ~~companies primarily within~~companies. Business is written in the ~~U.S. The International operation writes non-U.S. property and casualty reinsurance~~United States as well as through ~~Everest Re’s~~ branches in Canada ~~Singapore~~ and ~~through offices in Brazil, Miami and New Jersey.~~Singapore. The Insurance operation writes property and casualty insurance directly and through brokers, surplus lines brokers and general agents ~~mainly~~ within the ~~U.S.~~United States.

Underwriting results include earned premium less losses and LAE incurred, commission and brokerage expenses and other underwriting expenses. We measure our underwriting results using ratios, in particular loss, commission and brokerage and other underwriting expense ratios, which respectively, divide incurred losses, commissions and brokerage and other underwriting expenses by premiums earned.

Our loss and LAE reserves are management’s best estimate of our ultimate liability for unpaid claims. We re-evaluate our estimates on an ongoing basis, including all prior period reserves, taking into consideration all available information and, in particular, recently reported loss claim experience and trends related to prior periods. Such re-evaluations are recorded in incurred losses in the period in which the re-evaluation is made.

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

~~U.S.~~

Reinsurance.

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

	Three Months Ended March 31,
(Dollars in millions)	2020		2019		Variance		% Change
Gross written premiums	$	1,308.2	$	1,153.1	$	155.1	13.5%
Net written premiums		1,114.2		976.0		138.2	14.2%

Premiums earned	$	1,007.0	$	897.3	$	109.7	12.2%
Incurred losses and LAE		682.7		553.7		129.0	23.3%
Commission and brokerage		260.9		237.0		23.9	10.1%
Other underwriting expenses		29.8		24.1		5.7	23.7%
Underwriting gain (loss)	$	33.6	$	82.5	$	(48.9)	-59.3%

							Point Chg
Loss ratio		67.8%		61.7%			6.1
Commission and brokerage ratio		25.9%		26.4%			(0.5)
Other underwriting ratio		3.0%		2.7%			0.3
Combined ratio		96.7%		90.8%			5.9

(Some amounts may not reconcile due to rounding.)
(NM, not meaningful)

Three Months Ended June 30, Six Months Ended June 30,
(Dollars in millions)
2019 2018 Variance % Change 2019 2018 Variance % Change
Gross written premiums

$
641.8

$
652.1

$
(10.3
)

-1.6
%

$
1,405.9

$
1,296.3

$
109.6

8.5
%
Net written premiums

487.7

429.9

57.8

13.4
%

1,105.8

853.8

252.0

29.5
%

Premiums earned

$
605.1

$
467.5

$
137.6

29.4
%

$
1,180.0

$
908.9

$
271.1

29.8
%
Incurred losses and LAE

367.5

708.5

(341.0
)

-48.1
%

684.1

1,009.7

(325.6
)

-32.2
%
Commission and brokerage

172.6

148.7

23.9

16.1
%

339.7

276.0

63.7

23.1
%
Other underwriting expenses

15.7

15.5

0.2

1.3
%

31.3

32.4

(1.1
)

-3.4
%
Underwriting gain (loss)

$
49.3

$
(405.2
)

$
454.5

-112.2
%

$
124.9

$
(409.2
)

$
534.1

-130.5
%

Point Chg Point Chg
Loss ratio

60.7
%

151.6
%

(90.9
)

58.0
%

111.1
%

(53.1
)
Commission and brokerage ratio

28.5
%

31.8
%

(3.3
)

28.8
%

30.4
%

(1.6
)
Other underwriting ratio

2.6
%

3.3
%

(0.7
)

2.6
%

3.5
%

(0.9
)
Combined ratio

91.8
%

186.7
%

(94.9
)

89.4
%

145.0
%

(55.6
)

(Some amounts may not reconcile due to rounding.)
(NM, not meaningful)

Premiums.Gross written premiums ~~decreased~~increased by ~~1.6%~~13.5% to ~~$641.8~~$1,308.2 million for the three months ended ~~June 30, 2019~~ March 31, 2020 from ~~$652.1~~$1,153.1 million for the three months ended ~~June 30, 2018~~,March 31, 2019 primarily due to ~~a decrease~~increases in casualty writings and treaty property ~~writings, partially offset by an increase in treaty casualty~~ business. Net written premiums increased by ~~13.4%~~14.2% to ~~$487.7~~$1,114.2 million for the three months ended ~~June 30, 2019~~ March 31, 2020 compared to ~~$429.9~~$976.0 million for the three months ended ~~June 30, 2018. The difference between~~March 31, 2019, which is consistent with the change in gross written ~~premiums compared to the change in net written premiums is primarily due to varying utilization of reinsurance, including the impact of changes in affiliated reinsurance contracts.~~ premiums. Premiums earned increased ~~by 29.4%~~12.2% to ~~$605.1~~$1,007.0 million for the three months ended ~~June 30, 2019~~March 31, 2020 compared to ~~$467.5~~$897.3 million for the three months ended ~~June 30, 2018~~. March 31, 2019. The change in premiums earned relative to net written premiums is the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.

Incurred Losses and LAE.The following tables present the incurred losses and LAE for the U.S. Reinsurance segment for the periods indicated.

	Three Months Ended March 31,
	Current		Ratio %/		Prior		Ratio %/		Total		Ratio %/
(Dollars in millions)	Year		Pt Change		Years		Pt Change		Incurred		Pt Change
2020
Attritional	$	654.7	65.0%		$	(0.6)	-0.1%		$	654.0	64.9%
Catastrophes		24.5	2.4%			4.2	0.4%			28.7	2.8%
Total segment	$	679.2	67.4%		$	3.5	0.3%		$	682.7	67.8%
2019
Attritional	$	522.1	58.2%		$	-	0.0%		$	522.1	58.2%
Catastrophes		25.0	2.8%			6.7	0.7%			31.7	3.5%
Total segment	$	547.1	61.0%		$	6.7	0.7%		$	553.7	61.7%
Variance 2020/2019
Attritional	$	132.6	6.8	pts	$	(0.6)	(0.1)	pts	$	131.9	6.7	pts
Catastrophes		(0.5)	(0.4)	pts		(2.5)	(0.3)	pts		(3.0)	(0.7)	pts
Total segment	$	132.1	6.4	pts	$	(3.1)	(0.4)	pts	$	129.0	6.1	pts

Incurred losses increased by 23.3% to $682.7 million for the three months ended March 31, 2020 compared to $553.7 million for the three months ended March 31, 2019. The increase was primarily due to an increase of $132.6 million in current year attritional losses, primarily related to $20.0 million of losses from the COVID-19 pandemic and the impact of the increase in premiums earned. The current year catastrophe losses of $24.5 million for the three months ended March 31, 2020 primarily related to Australia East Coast storms ($10.0 million), Australia fires (10.0 million) and the Nashville tornadoes ($4.5 million). The $25.0 million of current year catastrophe losses for the three months ended March 31, 2019 related to the Townsville monsoon in Australia ($25.0 million).

Segment Expenses. Commission and brokerage increased to $260.9 million for the three months ended March 31, 2020 compared to $237.0 million for the three months ended March 31, 2019. The increase was mainly due to the impact of the increase in premiums earned. Segment other underwriting expenses increased to $29.8 million for the three months ended March 31, 2020 from $24.1 million for the three months ended March 31, 2019, mainly due to the impact of the increase in premiums earned and changes in affiliated reinsurance agreements.

Insurance.

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

	Three Months Ended March 31,
(Dollars in millions)	2020		2019		Variance		% Change
Gross written premiums	$	666.8	$	531.8	$	135.0	25.4%
Net written premiums		524.5		416.2		108.3	26.0%

Premiums earned	$	487.0	$	373.2	$	113.8	30.5%
Incurred losses and LAE		346.8		242.4		104.4	43.1%
Commission and brokerage		62.2		51.3		10.9	21.2%
Other underwriting expenses		71.4		54.3		17.1	31.5%
Underwriting gain (loss)	$	6.6	$	25.2	$	(18.6)	-73.8%

							Point Chg
Loss ratio		71.2%		65.0%			6.2
Commission and brokerage ratio		12.8%		13.7%			(0.9)
Other underwriting ratio		14.6%		14.5%			0.1
Combined ratio		98.6%		93.2%			5.4

(Some amounts may not reconcile due to rounding.)
(NM, not meaningful)

Premiums.Gross written premiums increased by ~~8.5%~~25.4% to ~~$1,405.9~~$666.8 million for the ~~six~~three months ended ~~June 30, 2019~~ ~~from $1,296.3~~March 31, 2020 compared to $531.8 million for the ~~six~~three months ended ~~June 30, 2018, primarily due~~March 31, 2019. This increase was related to ~~an increase in treaty~~most lines of business including casualty, ~~writings, partially offset by a decline in treaty~~ property, ~~business.~~energy, specialty lines and accident and health. Net written premiums increased by ~~29.5%~~26.0% to ~~$1,105.8~~$524.5 million for the ~~six~~three months ended ~~June 30, 2019~~ March 31, 2020 compared to ~~$853.8~~$416.2 million for the ~~six~~three months ended ~~June 30, 2018. The difference between~~March 31, 2019, which is consistent with the change in gross written ~~premiums compared to the change in net written premiums is primarily due to varying utilization of reinsurance, including the impact of changes in affiliated reinsurance contracts.~~ premiums. Premiums earned increased ~~by 29.8%~~30.5% to ~~$1,180.0~~$487.0 million for the ~~six~~three months ended ~~June 30, 2019~~March 31, 2020 compared to ~~$908.9~~$373.2 million for the ~~six~~three months ended ~~June 30, 2018~~. March 31, 2019. The change in premiums earned ~~relative to net written premiums~~ is the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.

Incurred Losses and LAE. ~~The following tables present the incurred losses and LAE for the U.S. Reinsurance segment for the periods indicated.~~

Three Months Ended June 30,
Current Ratio %/ Prior Ratio %/ Total Ratio %/
(Dollars in millions) Year Pt Change Years Pt Change Incurred Pt Change
2019

Attritional

$
356.0

58.8
%

$
3.0

0.5
%

$
359.0

59.3
%

Catastrophes

(0.1
)

0.0
%

8.5

1.4
%

8.5

1.4
%

Total segment

$
355.9

58.8
%

$
11.5

1.9
%

$
367.5

60.7
%


2018

Attritional

$
260.4

55.7
%

$
(5.2
)

-1.1
%

$
255.2

54.6
%

Catastrophes

4.1

0.9
%

449.2

96.1
%

453.3

97.0
%

Total segment

$
264.5

56.6
%

$
444.0

95.0
%

$
708.5

151.6
%


Variance 2019/2018

Attritional

$
95.6

3.1

pts

$
8.2

1.6

pts

$
103.8

4.7

pts
Catastrophes

(4.2
)

(0.9
)
pts

(440.7
)

(94.7
)
pts

(444.8
)

(95.6
)
pts
Total segment

$
91.4

2.2

pts

$
(432.5
)

(93.1
)
pts

$
(341.0
)

(90.9
)
pts

Six Months Ended June 30,
Current Ratio %/ Prior Ratio %/ Total Ratio %/
(Dollars in millions) Year Pt Change Years Pt Change Incurred Pt Change
2019

Attritional

$
708.0

60.0
%

$
3.0

0.3
%

$
711.0

60.2
%

Catastrophes

(0.1
)

0.0
%

(26.8
)

-2.3
%

(26.9
)

-2.3
%

Total segment

$
707.9

60.0
%

$
(23.8
)

-2.0
%

$
684.1

58.0
%


2018

Attritional

$
561.6

61.9
%

$
(5.2
)

-0.6
%

$
556.4

61.3
%

Catastrophes

4.1

0.4
%

449.2

49.4
%

453.3

49.8
%

Total segment

$
565.7

62.3
%

$
444.0

48.8
%

$
1,009.7

111.1
%


Variance 2019/2018

Attritional

$
146.4

(1.9
)
pts

$
8.2

0.9

pts

$
154.6

(1.1
)
pts
Catastrophes

(4.2
)

(0.4
)
pts

(476.0
)

(51.7
)
pts

(480.2
)

(52.1
)
pts
Total segment

$
142.2

(2.3
)
pts

$
(467.8
)

(50.8
)
pts

$
(325.6
)

(53.1
)
pts

(Some amounts may not reconcile due to rounding.)

~~Incurred losses decreased by 48.1% to $367.5 million~~ ~~for the three months ended June 30, 2019~~ ~~compared to $708.5 million~~ ~~for the three months ended June 30, 2018.~~ ~~The decrease was primarily due to $440.7 million of less unfavorable development on prior years catastrophe losses in 2019 compared to 2018.~~ The unfavorable development in 2018 mainly related to Hurricanes Harvey, Irma and Maria. This decline was partially offset by an increase of $95.6 million in current year attritional losses, mainly due to the impact of the increase in premiums earned and changes in mix of business. The current year catastrophe losses of $4.1 million for the three months ended June 30, 2018 related to the U.S. winter storms ($4.1 million).

~~Incurred losses decreased by 32.2% to $684.1 million~~ ~~for the six months ended June 30, 2019~~ ~~compared to $1,009.7 million~~ ~~for the six months ended June 30, 2018.~~ ~~The decrease was primarily due to $476.0 million of less unfavorable development on prior year catastrophe losses in 2019 compared to 2018.~~ The unfavorable development mainly related to Hurricanes Harvey, Irma and Maria as well as the 2017 California wildfires. This decline was partially offset by an increase of $146.4 million in current year attritional losses, mainly due to the impact of the increase in premiums earned and changes in the mix of business. The current year catastrophe losses of $4.1 million for the six months ended June 30, 2018 related to the U.S. winter storms ($4.1 million).

~~Segment Expenses.~~ ~~Commission and brokerage increased to $172.6 million~~ ~~for the three months ended June 30, 2019~~ ~~compared to $148.7 million~~ ~~for the three months ended June 30, 2018. Commission and brokerage increased to $339.7 million~~ ~~for the six months ended June 30, 2019~~ ~~compared to $276.0 million~~ ~~for the six months ended June 30, 2018~~. ~~The increases were mainly due to the impact of the increases in premium earned, changes in the mix of business and changes in affiliated reinsurance agreements.~~

~~Segment other underwriting expenses increased slightly to $15.7 million~~ ~~for the three months ended June 30, 2019~~ ~~from $15.5 million~~ ~~for the three months ended June 30, 2018.~~ ~~Segment other underwriting expenses decreased slightly to $31.3 million~~ ~~for the six months ended June 30, 2019~~ ~~from $32.4 million~~ ~~for the six months ended June 30, 2018.~~

~~International.~~

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

Three Months Ended June 30, Six Months Ended June 30,
(Dollars in millions)
2019 2018 Variance % Change 2019 2018 Variance % Change
Gross written premiums

$
372.7

$
398.7

$
(26.0
)

-6.5
%

$
761.6

$
765.7

$
(4.1
)

-0.5
%
Net written premiums

350.2

337.4

12.8

3.8
%

708.1

672.2

35.9

5.3
%

Premiums earned

$
353.1

$
343.1

$
10.0

2.9
%

$
675.5

$
672.1

$
3.4

0.5
%
Incurred losses and LAE

213.8

259.5

(45.7
)

-17.6
%

450.9

435.8

15.1

3.5
%
Commission and brokerage

86.0

84.4

1.6

1.9
%

155.8

162.8

(7.0
)

-4.3
%
Other underwriting expenses

9.6

9.9

(0.3
)

-3.0
%

18.1

20.0

(1.9
)

-9.5
%
Underwriting gain (loss)

$
43.7

$
(10.6
)

$
54.4
NM
$
50.6

$
53.5

$
(2.9
)

-5.4
%

Point Chg Point Chg
Loss ratio

60.6
%

75.6
%

(15.0
)

66.8
%

64.9
%

1.9

Commission and brokerage ratio

24.3
%

24.6
%

(0.3
)

23.1
%

24.2
%

(1.1
)
Other underwriting ratio

2.8
%

2.9
%

(0.1
)

2.6
%

2.9
%

(0.3
)
Combined ratio

87.7
%

103.1
%

(15.4
)

92.5
%

92.0
%

0.5

(Some amounts may not reconcile due to rounding.)
(NM, not meaningful)

~~Premiums.~~ ~~Gross written premiums decreased by 6.5% to $372.7 million~~ ~~for the three months ended June 30, 2019~~ ~~compared to $398.7 million~~ ~~for the three months ended June 30, 2018~~, primarily due to a decline in Latin American business and the negative impact of $9.1 million from the movement of foreign exchange rates, partially offset by increases in Middle East and Africa business and facultative business. Net written premiums increased by 3.8% to $350.2 million ~~for the three months ended June 30, 2019~~ ~~compared to $337.4 million~~ for the three months ended June 30, 2018. The difference between the change in gross written premiums compared to the change in net written premiums is primarily due to the varying utilization of reinsurance, including the impact of changes in affiliated reinsurance contracts~~. Premiums earned increased 2.9% to $353.1 million~~ ~~for the three months ended June 30, 2019~~ ~~compared to $343.1 million~~ ~~for the three months ended June 30, 2018~~. The change in premiums earned relative to net written premiums is due to changes in affiliated reinsurance agreements and is also 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 decreased by 0.5% to $761.6 million~~ ~~for the six months ended June 30, 2019~~ ~~compared to $765.7 million~~ ~~for the six months ended June 30, 2018~~, primarily due to a decline in Latin American business and the negative impact of $23.3 million from the movement of foreign exchange rates, partially offset by increases in Middle East and Africa business and facultative business. Net written premiums increased by 5.3% to $708.1 million ~~for the six months ended June 30, 2019~~ ~~compared to $672.2 million~~ for the six months ended June 30, 2018. The difference between the change in gross written premiums compared to the change in net written premiums is primarily due to the varying utilization of reinsurance, including the impact of changes in affiliated reinsurance contracts. ~~Premiums earned increased 0.5% to $675.5 million~~ ~~for the six months ended June 30, 2019~~ ~~compared to $672.1 million~~ ~~for~~

~~the six months ended June 30, 2018~~. The change in premiums earned relative to net written premiums is due to changes in affiliated reinsurance agreements and is also the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.

~~Incurred Losses and LAE.~~ ~~The following tables present the incurred losses and LAE for the International segment for the periods indicated.~~

Three Months Ended June 30,
Current Ratio %/ Prior Ratio %/ Total Ratio %/
(Dollars in millions) Year Pt Change Years Pt Change Incurred Pt Change
2019

Attritional

$
191.4

54.2
%

$
1.9

0.5
%

$
193.3

54.7
%

Catastrophes

(0.0
)

0.0
%

20.6

5.8
%

20.5

5.8
%

Total segment

$
191.4

54.2
%

$
22.4

6.4
%

$
213.8

60.6
%


2018

Attritional

$
161.7

47.1
%

$
-

0.0
%

$
161.7

47.1
%

Catastrophes

50.0

14.6
%

47.8

13.9
%

97.8

28.5
%

Total segment

$
211.7

61.7
%

$
47.8

13.9
%

$
259.5

75.6
%


Variance 2019/2018

Attritional

$
29.7

7.1

pts

$
1.9

0.5

pts

$
31.6

7.6

pts
Catastrophes

(50.0
)
��
(14.6
)
pts

(27.2
)

(8.1
)
pts

(77.3
)

(22.7
)
pts
Total segment

$
(20.3
)

(7.5
)
pts

$
(25.4
)

(7.5
)
pts

$
(45.7
)

(15.0
)
pts

Six Months Ended June 30,
Current Ratio %/ Prior Ratio %/ Total Ratio %/
(Dollars in millions) Year Pt Change Years Pt Change Incurred Pt Change
2019

Attritional

$
361.5

53.5
%

$
1.9

0.3
%

$
363.4

53.8
%

Catastrophes

25.0

3.7
%

62.6

9.3
%

87.5

13.0
%

Total segment

$
386.5

57.2
%

$
64.4

9.5
%

$
450.9

66.8
%


2018

Attritional

$
338.1

50.4
%

$
-

0.0
%

$
338.1

50.4
%

Catastrophes

50.0

7.4
%

47.8

7.1
%

97.8

14.5
%

Total segment

$
388.1

57.8
%

$
47.8

7.1
%

$
435.8

64.9
%


Variance 2019/2018

Attritional

$
23.4

3.1

pts

$
1.9

0.3

pts

$
25.3

3.4

pts
Catastrophes

(25.0
)

(3.7
)
pts

14.8

2.2

pts

(10.3
)

(1.5
)
pts
Total segment

$
(1.6
)

(0.6
)
pts

$
16.6

2.4

pts

$
15.1

1.9

pts

(Some amounts may not reconcile due to rounding.)

~~Incurred losses and LAE decreased by 17.6% to $213.8 million~~ ~~for the three months ended June 30, 2019~~ ~~compared to $259.5 million~~ ~~for the three months ended June 30, 2018~~, primarily due to a decrease of $50.0 million in current year catastrophe losses and $27.2 million of less unfavorable development on prior years catastrophe losses partially offset by an increase of $29.7 million in current year attritional losses. There were no current year catastrophe losses for the three months ended June 30, 2019. The current year catastrophe losses of $50.0 million for the three months ended June 30, 2018 related to Cyclone Mekunu ($50.0 million).

~~Incurred losses and LAE increased by 3.5% to $450.9 million~~ ~~for the six months ended June 30, 2019~~ ~~compared to $435.8 million~~ ~~for the six months ended June 30, 2018~~, primarily due to an increase of $23.4 million in current year attritional losses and an additional $14.8 million of unfavorable development on prior years catastrophe losses partially offset by a decrease of $25.0 million in current year catastrophe losses. The current year catastrophe losses of $25.0 million for the six months ended June 30, 2019 related to the Townsville monsoon in Australia ($25 million). The current year catastrophe losses of $50.0 million for the six months ended June 30, 2018 related to Cyclone Mekunu ($50.0 million).

~~Segment Expenses.~~ ~~Commission and brokerage increased to $86.0 million~~ ~~for the three months ended June 30, 2019~~ ~~compared to $84.4 million~~ ~~for the three months ended June 30, 2018. Commission and brokerage decreased to $155.8 million~~ ~~for the six months ended June 30, 2019~~ ~~compared to $162.8 million~~ ~~for the six months ended June 30, 2018~~. ~~The fluctuations were mainly due to the impact of changes in affiliated reinsurance agreements~~ ~~and changes in the mix of business.~~

~~Segment other underwriting expenses decreased slightly to $9.6 million~~ ~~for the three months ended June 30, 2019~~ ~~from $9.9 million~~ ~~for the three months ended June 30, 2018.~~ ~~Segment other underwriting expenses decreased slightly to $18.1 million~~ ~~for the six months ended June 30, 2019~~ ~~from $20.0 million~~ ~~for the six months ended June 30, 2018.~~

~~Insurance.~~

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

Three Months Ended June 30, Six Months Ended June 30,
(Dollars in millions)
2019 2018 Variance % Change 2019 2018 Variance % Change
Gross written premiums

$
673.6

$
581.5

$
92.1

15.8
%

$
1,205.4

$
1,036.4

$
169.0

16.3
%
Net written premiums

482.0

423.1

58.9

13.9
%

898.2

771.4

126.8

16.4
%

Premiums earned

$
417.4

$
369.2

$
48.2

13.1
%

$
790.6

$
714.9

$
75.7

10.6
%
Incurred losses and LAE

261.9

260.7

1.2

0.5
%

504.3

496.4

7.9

1.6
%
Commission and brokerage

58.2

54.9

3.3

6.0
%

109.5

105.7

3.8

3.6
%
Other underwriting expenses

58.0

48.9

9.1

18.6
%

112.3

99.3

13.0

13.1
%
Underwriting gain (loss)

$
39.3

$
4.6

$
34.6
NM
$
64.5

$
13.5

$
51.0
NM

Point Chg Point Chg
Loss ratio

62.8
%

70.6
%

(7.8
)

63.8
%

69.4
%

(5.6
)
Commission and brokerage ratio

13.9
%

14.9
%

(1.0
)

13.8
%

14.8
%

(1.0
)
Other underwriting ratio

13.9
%

13.2
%

0.7

14.2
%

13.9
%

0.3

Combined ratio

90.6
%

98.7
%

(8.1
)

91.8
%

98.1
%

(6.3
)

(Some amounts may not reconcile due to rounding.)
(NM, not meaningful)

~~Premiums.~~ ~~Gross written premiums increased by 15.8% to $673.6 million~~ ~~for the three months ended June 30, 2019~~ ~~compared to $581.5 million~~ ~~for the three months ended June 30, 2018. This increase was related to most lines of business including property, casualty, energy and specialty lines. Net written premiums increased by 13.9% to $482.0 million~~ ~~for the three months ended June 30, 2019~~ ~~compared to $423.1 million~~ ~~for the three months ended June 30, 2018, which is consistent with the change in written premiums. Premiums earned increased by 13.1% to $417.4 million~~ ~~for the three months ended June 30, 2019~~ ~~compared to $369.2 million~~ ~~for the three months ended June 30, 2018~~. 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 16.3% to $1,205.4 million~~ ~~for the six months ended June 30, 2019~~ ~~compared to $1,036.4 million~~ ~~for the six months ended June 30, 2018. This increase was related to most lines of business including property, casualty, energy, specialty lines and accident and health. Net written premiums increased by 16.4% to $898.2 million~~ ~~for the six months ended June 30, 2019~~ ~~compared to $771.4 million~~ ~~for the six months ended June 30, 2018, which is consistent with the change in written premiums. Premiums earned increased by 10.6% to $790.6 million~~ ~~for the six months ended June 30, 2019~~ ~~compared to $714.9 million~~ ~~for the six months ended June 30, 2018~~. The change in premiums earned relative to net written premiums is the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.

~~Incurred Losses and LAE.~~The following tables present the incurred losses and LAE for the Insurance segment for the periods indicated.

	Three Months Ended March 31,
	Current		Ratio %/		Prior		Ratio %/		Total		Ratio %/
(Dollars in millions)	Year		Pt Change		Years		Pt Change		Incurred		Pt Change
2020
Attritional	$	341.8	70.2%		$	(0.5)	-0.1%		$	341.3	70.1%
Catastrophes		5.5	1.1%			-	0.0%			5.5	1.1%
Total segment	$	347.3	71.3%		$	(0.5)	-0.1%		$	346.8	71.2%
2019
Attritional	$	241.8	64.8%		$	-	0.0%		$	241.8	64.8%
Catastrophes		-	0.0%			0.6	0.2%			0.6	0.2%
Total segment	$	241.8	64.8%		$	0.6	0.2%		$	242.4	65.0%
Variance 2020/2019
Attritional	$	100.0	5.4	pts	$	(0.5)	(0.1)	pts	$	99.5	5.3	pts
Catastrophes		5.5	1.1	pts		(0.6)	(0.2)	pts		4.9	0.9	pts
Total segment	$	105.5	6.5	pts	$	(1.1)	(0.3)	pts	$	104.4	6.2	pts

Three Months Ended June 30,
Current Ratio %/ Prior Ratio %/ Total Ratio %/
(Dollars in millions) Year Pt Change Years Pt Change Incurred Pt Change
2019

Attritional

$
279.1

66.9
%

$
(18.7
)

-4.5
%

$
260.4

62.4
%

Catastrophes

-

0.0
%

1.5

0.4
%

1.5

0.4
%

Total segment

$
279.1

66.9
%

$
(17.2
)

-4.1
%

$
261.9

62.8
%


2018

Attritional

$
251.4

68.1
%

$
1.6

0.4
%

$
253.0

68.5
%

Catastrophes

10.5

2.8
%

(2.7
)

-0.7
%

7.8

2.1
%

Total segment

$
261.9

70.9
%

$
(1.1
)

-0.3
%

$
260.7

70.6
%


Variance 2019/2018

Attritional

$
27.7

(1.2
)
pts

$
(20.3
)

(4.9
)
pts

$
7.4

(6.1
)
pts
Catastrophes

(10.5
)

(2.8
)
pts

4.2

1.1

pts

(6.3
)

(1.7
)
pts
Total segment

$
17.2

(4.0
)
pts

$
(16.1
)

(3.8
)
pts

$
1.2

(7.8
)
pts

Six Months Ended June 30,
Current Ratio %/ Prior Ratio %/ Total Ratio %/
(Dollars in millions) Year Pt Change Years Pt Change Incurred Pt Change
2019

Attritional

$
520.9

65.9
%

$
(18.7
)

-2.4
%

$
502.2

63.5
%

Catastrophes

-

0.0
%

2.1

0.3
%

2.1

0.3
%

Total segment

$
520.9

65.9
%

$
(16.6
)

-2.1
%

$
504.3

63.8
%


2018

Attritional

$
486.7

68.0
%

$
2.0

0.3
%

$
488.7

68.3
%

Catastrophes

10.5

1.5
%

(2.7
)

-0.4
%

7.8

1.1
%

Total segment

$
497.2

69.5
%

$
(0.7
)

-0.1
%

$
496.4

69.4
%


Variance 2019/2018

Attritional

$
34.2

(2.1
)
pts

$
(20.7
)

(2.7
)
pts

$
13.5

(4.8
)
pts
Catastrophes

(10.5
)

(1.5
)
pts

4.8

0.7

pts

(5.7
)

(0.8
)
pts
Total segment

$
23.7

(3.6
)
pts

$
(15.9
)

(2.0
)
pts

$
7.9

(5.6
)
pts

(Some amounts may not reconcile due to rounding.)

Incurred losses and LAE increased by ~~0.5%~~43.1% to ~~$261.9~~$346.8 million for the three months ended ~~June 30, 2019~~March 31, 2020 compared to ~~$260.7~~$242.4 million for the three months ended ~~June 30, 2018,~~ March 31, 2019, mainly due to an increase of ~~$27.7~~$100.0 million in current year attritional losses, ~~mainly due to~~ resulting from $15.7 million of losses from the COVID-19 pandemic, the impact of the increase in premiums earned ~~partially offset by a net~~and an increase of $5.5 million in ~~favorable development of $20.3 million on prior~~current year ~~attritional~~catastrophe losses. ~~There were no~~The current year catastrophe losses for the three months ended ~~June 30, 2019. The current year~~March 31, 2020 of $5.5 million related to the Nashville tornadoes ($5.5 million). There were no catastrophe losses ~~of $10.5~~for the three months ended March 31, 2019.

Segment Expenses.Commission and brokerage increased to $62.2 million for the three months ended ~~June 30, 2018 related to the U.S. winter storms ($10.5 million).~~

~~Incurred losses and LAE increased by 1.6% to $504.3 million~~ ~~for the six months ended June 30, 2019~~March 31, 2020 compared to ~~$496.4~~$51.3 million ~~for the six months ended June 30, 2018,~~ mainly due to an increase of $34.2 million in current year attritional losses mainly due to the increase in premiums earned, partially offset by a net increase in favorable development of $20.7 million in prior year attritional losses. There were no current year catastrophe losses for the six months ended June 30, 2019. The current year catastrophe losses of $10.5 million for the six months ended June 30, 2018 related to the U.S. winter storms ($10.5 million).

~~Segment Expenses.~~ ~~Commission and brokerage increased to $58.2 million~~ for the three months ended ~~June 30, 2019~~ ~~compared to $54.9 million~~ ~~for the three months ended June 30, 2018. Commission and brokerage increased to $109.5 million~~ ~~for the six months ended June 30, 2019~~ ~~compared to $105.7 million~~ ~~for the six months ended June 30, 2018~~. March 31, 2019. The ~~increases were~~increase was mainly due to the impact of the increase in premiums ~~earned and changes in affiliated reinsurance agreements~~.

earned. Segment other underwriting expenses increased to ~~$58.0~~$71.4 million for the three months ended ~~June 30, 2019~~ March 31, 2020 compared to ~~$48.9~~$54.3 million for the three months ended ~~June 30, 2018.~~ ~~Segment other underwriting expenses increased to $112.3 million~~ ~~for the six months ended June 30, 2019~~ ~~compared to $99.3 million~~ ~~for the six months ended June 30, 2018.~~March 31, 2019. The increase was mainly due to the impact of the increase in premiums earned and expenses related to the continued build out of the insurance business.

Market Sensitive Instruments.

The SEC’s Financial Reporting Release #48 requires registrants to clarify and expand upon the existing financial statement disclosure requirements for derivative financial instruments, derivative commodity instruments and other financial instruments (collectively, “market sensitive instruments”). We do not generally enter into market sensitive instruments for trading purposes.

Our current investment strategy seeks to maximize after-tax income through a high quality, diversified, taxable and tax-preferenced fixed maturity portfolio, while maintaining an adequate level of liquidity. Our mix of taxable and tax-preferenced investments is adjusted periodically, consistent with our current and projected operating results, market conditions and our tax position. The fixed maturity securities in the investment portfolio are comprised of non-trading available for sale securities. Additionally, we have invested in equity securities.

The overall investment strategy considers the scope of present and anticipated Company operations. In particular, estimates of the financial impact resulting from non-investment asset and liability transactions, together with our capital structure and other factors, are used to develop a net liability analysis. This analysis includes estimated payout characteristics for which our investments provide liquidity. This analysis is considered in the development of specific investment strategies for asset allocation, duration and credit quality. The change in overall market sensitive risk exposure principally reflects the asset changes that took place during the period.

Interest Rate ~~Risk.~~Risk. Our ~~$11.3~~$12.2 billion investment portfolio, at ~~June 30,~~ ~~2019~~,March 31, 2020, is principally comprised of fixed maturity securities, which are generally subject to interest rate risk and some foreign currency exchange rate risk, and some equity securities, which are subject to price fluctuations and some foreign exchange rate risk. The overall economic impact of the foreign exchange risks on the investment portfolio is partially mitigated by changes in the dollar value of foreign currency denominated liabilities and their associated income statement impact.

Interest rate risk is the potential change in value of the fixed maturity securities portfolio, including short-term investments, from a change in market interest rates. In a declining interest rate environment, it includes prepayment risk on the ~~$905.9~~$996.1 million of mortgage-backed securities in the ~~$6,972.0~~$7,501.5 million fixed maturity portfolio. Prepayment risk results from potential accelerated principal payments that shorten the average life and thus the expected yield of the security.

The table below displays the potential impact of market value fluctuations and after-tax unrealized appreciation on our fixed maturity portfolio (including ~~$368.9~~$324.9 million of short-term investments) for the period indicated based on upward and downward parallel and immediate 100 and 200 basis point shifts in interest rates. For legal entities with a U.S. dollar functional currency, this modeling was performed on each security individually. To generate appropriate price estimate on mortgage-backed securities, changes in prepayment expectations under different interest rate environments were taken into account. For legal entities with non-U.S. dollar functional currency, the effective duration of the involved portfolio of securities was used as a proxy for the market value change under the various interest rate change scenarios.

	Impact of Interest Rate Shift in Basis Points
	At March 31, 2020
(Dollars in millions)	-200		-100		-		100		200
Total Market/Fair Value	$	8,362.9	$	8,094.7	$	7,826.4	$	7,558.0	$	7,289.9
Market/Fair Value Change from Base (%)		6.9%		3.4%		0.0%		-3.4%		-6.9%
Change in Unrealized Appreciation
After-tax from Base ($)	$	423.8	$	211.9	$	-	$	(212.0)	$	(423.8)

Impact of Interest Rate Shift in Basis Points
At June 30, 2019
(Dollars in millions) -200 -100 0 100 200
Total Market/Fair Value

$
7,813.7

$
7,576.0

$
7,340.9

$
7,101.2

$
6,862.5

Market/Fair Value Change from Base (%)

6.4
%

3.2
%

0.0
%

-3.3
%

-6.5
%
Change in Unrealized Appreciation

After-tax from Base ($)
$
373.5

$
185.9

$
-

$
(189.4
)

$
(377.9
)

We had ~~$10,148.4~~$10,271.2 million and ~~$10,167.0~~$10,209.5 million of gross reserves for losses and LAE as of ~~June 30, 2019~~March 31, 2020 and December 31, ~~2018,~~2019, respectively. These amounts are recorded at their nominal value, as opposed to present value, which would reflect a discount adjustment to reflect the time value of money. Since losses are paid out over a period of time, the present value of the reserves is less than the nominal value. As interest rates rise, the present value of the reserves decreases and, conversely, as interest rates decline, the present value increases. These movements are the opposite of the interest rate impacts on the fair value of investments. While the difference between present value and nominal value is not reflected in our financial statements, our financial results will include investment income over time from the investment portfolio until the claims are paid. Our loss and loss reserve obligations have an expected duration that is reasonably consistent with our fixed income portfolio.

Equity ~~Risk.~~Risk. Equity risk is the potential change in fair and/or market value of the common stock, preferred stock and mutual fund portfolios arising from changing prices. Our equity investments consist of a diversified portfolio of individual securities. The primary objective of the equity portfolio is to obtain greater total return relative to our core bonds over time through market appreciation and income.

The table below displays the impact on fair/market value and after-tax change in fair/market value of a 10% and 20% change in equity prices up and down for the periods indicated.

	Impact of Percentage Change in Equity Fair/Market Values
	At March 31, 2020
(Dollars in millions)	-20%		-10%		0%		10%		20%
Fair/Market Value of the Equity Portfolio	$	462.8	$	520.7	$	578.5	$	636.4	$	694.2
After-tax Change in Fair/Market Value		(91.4)		(45.7)		-		45.7		91.4

Impact of Percentage Change in Equity Fair/Market Values
At June 30, 2019
(Dollars in millions) -20% 10%
0% 10% 20%
Fair/Market Value of the Equity Portfolio

$
601.3

$
676.5

$
751.6

$
826.8

$
902.0

After-tax Change in Fair/Market Value

(118.8
)

(59.4
)

-

59.4

118.8

Foreign Currency Risk. Foreign currency risk is the potential change in value, income and cash flow arising from adverse changes in foreign currency exchange rates. Each of our non-U.S. (“foreign”) operations maintains capital in the currency of the country of its geographic location consistent with local regulatory guidelines. Each foreign operation may conduct business in its local currency, as well as the currency of other countries in which it operates. The primary foreign currency exposures for these foreign operations are the Singapore and Canadian Dollars. We mitigate foreign exchange exposure by generally matching the currency and duration of our assets to our corresponding operating liabilities. In accordance with FASB guidance, the impact on the market value of available for sale fixed maturities due to changes in foreign currency exchange rates, in relation to functional currency, is reflected as part of other comprehensive income. Conversely, the impact of changes in foreign currency exchange rates, in relation to functional currency, on other assets and liabilities is reflected through net income as a component of other income (expense). In addition, we translate the assets, liabilities and income of non-U.S. dollar functional currency legal entities to the U.S. dollar. This translation amount is reported as a component of other comprehensive income.

SAFE HARBOR DISCLOSURE

This report contains forward-looking statements within the meaning of the U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as “may”, “will”, “should”, “could”, “anticipate”, “estimate”, “expect”, “plan”, “believe”, “predict”, “potential” and “intend”. Forward-looking statements contained in this report include information regarding our reserves for losses and LAE, the CARES Act, the impact of the TCJA, the adequacy of our provision for uncollectible balances, estimates of our catastrophe exposure, the effects of catastrophic and pandemic events on our financial statements and the ability of our subsidiaries to pay dividends. Forward-looking statements only reflect our expectations and are not guarantees of performance. These statements involve risks,

uncertainties and assumptions. Actual events or results may differ materially from our expectations. Important factors that could cause our actual events or results to be materially different from our expectations include those discussed under the caption ITEM 1A, “Risk Factors” in the Company’s most recent 10-K filing. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market Risk Instruments. See “Market Sensitive Instruments” in PART I – ITEM 2.

ITEM 4.CONTROLS AND PROCEDURES

As of the end of the period covered by this report, our management carried out an evaluation, with the participation of the Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)). Based on their evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act are recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Our

management, with the participation of the Chief Executive Officer and Chief Financial Officer, also conducted an evaluation of our internal control over financial reporting to determine whether any changes occurred during the quarter covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Based on that evaluation, there has been no such change during the quarter covered by this report.

PART II

ITEM 1. LEGAL PROCEEDINGS

Aside from litigation and arbitrations related to these insurance and reinsurance agreements, the Company is not a party to any other material litigation or arbitration.

ITEM 1A. RISK FACTORS

No material changes.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

~~None.~~

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

~~None.~~

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

~~None.~~

ITEM 6. EXHIBITS~~EXHIBITS~~

Exhibit Index:

Exhibit No.	Description

31.1	Section 302 Certification of ~~Dominic J. Addesso~~	Juan C. Andrade

31.2	Section 302 Certification of Craig Howie

32.1	Section 906 Certification of ~~Dominic J. Addesso~~Juan C. Andrade and Craig Howie

101.INS	XBRL Instance Document

101.SCH	XBRL Taxonomy Extension Schema

101.CAL	XBRL Taxonomy Extension Calculation Linkbase

101.DEF	XBRL Taxonomy Extension Definition Linkbase

101.LAB	XBRL Taxonomy Extension Labels Linkbase

101.PRE	XBRL Taxonomy Extension Presentation Linkbase

Everest Reinsurance Holdings, Inc.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	Everest Reinsurance Holdings, Inc.
	(Registrant)


	/S/ CRAIG HOWIE
	Craig Howie
	Executive Vice President and
		Chief Financial Officer

	(Duly Authorized Officer and Principal Financial Officer)



Dated: May 15, 2020


	~~/S/ CRAIG HOWIE~~
	~~Craig Howie~~
	~~Executive Vice President and~~
		~~Chief Financial Officer~~

	~~(Duly Authorized Officer and Principal Financial Officer)~~



~~Dated: August 14, 2019~~

Delaware		22-3263609
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

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

		Number of Shares Outstanding
Class		At ~~August~~May 1, ~~2019~~2020
Common Shares, $0.01 par value		1,000

			Page
~~Item 1.~~				~~Financial Statements~~	PART I

FINANCIAL INFORMATION

Item 1.	Financial Statements

	Consolidated Balance Sheets at ~~June 30, 2019~~March 31, 2020 (unaudited) and December 31, 2019	1
		~~December 31, 2018~~	1

	Consolidated Statements of Operations and Comprehensive Income (Loss) for the three months ended March 31, 2020 and 2019 (unaudited)		2
		~~three and six months ended June 30, 2019 and 2018 (unaudited)~~	2

	Consolidated Statements of Changes in Stockholder’s Equity for the three months ended March 31, 2020 and ~~six~~2019 (unaudited)		3
		~~months ended June 30, 2019 and 2018 (unaudited)~~	3

	Consolidated Statements of Cash Flows for the ~~six~~three months ended March 31, 2020 and 2019 (unaudited)		4
		~~June 30, 2019 and 2018 (unaudited)~~	4

	Notes to Consolidated Interim Financial Statements (unaudited)		5

Item 2.	Management’s Discussion and Analysis of Financial Condition and
		Results of Operation	32 34

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	48 45

Item 4.	Controls and Procedures	48 45


~~Item 1.~~			~~Legal Proceedings~~	48 PART II

~~Item 1A.~~			~~Risk Factors~~	49 OTHER INFORMATION

Item 1.	Legal Proceedings	46

Item 1A.	Risk Factors	46

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	49 46

Item 3.	Defaults Upon Senior Securities	49 46

Item 4.	Mine Safety Disclosures	49 46

Item 5.	Other Information	49 46

Item 6.	Exhibits	49 47

	March 31,		December 31,
(Dollars in thousands, except share amounts and par value per share)	2020		2019
	(unaudited)
ASSETS:
Fixed maturities - available for sale, at market value (amortized cost: 2020, $7,539,624; 2019, $7,334,425 allowances for credit losses: 2020, $12,099; 2019, $0)	$	7,496,815	$	7,492,079
Fixed maturities - available for sale, at fair value		4,703		5,826
Equity securities, at fair value		578,531		764,049
Short-term investments (cost: 2020, $324,861; 2019, $279,824)		324,874		279,879
Other invested assets (cost: 2020, $1,026,409; 2019, $1,020,766)		1,026,409		1,020,766
Other invested assets, at fair value		2,425,061		1,982,582
Cash		385,974		411,122
Total investments and cash		12,242,367		11,956,303
Note Receivable - affiliated		300,000		300,000
Accrued investment income		56,964		54,383
Premiums receivable		1,419,662		1,337,344
Reinsurance receivables - unaffiliated		1,354,520		1,318,820
Reinsurance receivables - affiliated		2,981,436		3,125,269
Income taxes		76,787		65,793
Funds held by reinsureds		247,444		228,297
Deferred acquisition costs		414,953		388,238
Prepaid reinsurance premiums		381,953		413,612
Other assets		554,683		518,127
TOTAL ASSETS	$	20,030,769		19,706,186

LIABILITIES:
Reserve for losses and loss adjustment expenses	$	10,271,222	$	10,209,519
Unearned premium reserve		2,307,999		2,198,932
Funds held under reinsurance treaties		39,649		41,233
Other net payable to reinsurers		349,121		267,367
Losses in course of payment		71,107		70,541
Senior notes due 6/1/2044		397,104		397,074
Long term notes due 5/1/2067		235,083		236,758
Accrued interest on debt and borrowings		7,571		2,878
Unsettled securities payable		45,797		25,230
Other liabilities		309,387		399,229
Total liabilities		14,034,040		13,848,761

Commitments and Contingencies (Note 6)		-		-

STOCKHOLDER'S EQUITY:
Common stock, par value: $0.01; 3,000 shares authorized; 1,000 shares issued and outstanding (2019 and 2018)		-		-
Additional paid-in capital		1,100,781		1,100,678
Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) of ($29,426) at 2020 and $16,977 at 2019		(114,027)		64,324
Retained earnings		5,009,975		4,692,423
Total stockholder's equity		5,996,729		5,857,425
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$	20,030,769	$	19,706,186

The accompanying notes are an integral part of the consolidated financial statements.

	June 30,		December 31,
(Dollars in thousands, except share amounts and par value per share)	2019		2018
	(unaudited)
ASSETS:
Fixed maturities - available for sale, at market value	$	6,971,971	$	6,962,075
(amortized cost: 2019, $6,838,605; 2018, $7,032,749)
Fixed maturities - available for sale, at fair value		-		2,337
Equity securities, at fair value		751,642		564,338
Short-term investments (cost: 2019, $368,833; 2018, $174,155)		368,898		174,131
Other invested assets (cost: 2019, $943,022; 2018, $882,647)		943,022		882,647
Other invested assets, at fair value		1,892,988		1,717,336
Cash		377,189		404,522
Total investments and cash		11,305,710		10,707,386
Accrued investment income		50,276		47,232
Premiums receivable		1,564,911		1,471,805
Reinsurance receivables - unaffiliated		1,293,452		1,295,961
Reinsurance receivables - affiliated		3,467,105		3,544,975
Income taxes		151,109		409,892
Funds held by reinsureds		250,903		238,566
Deferred acquisition costs		361,621		353,630
Prepaid reinsurance premiums		439,433		328,796
Other assets		351,312		289,962
TOTAL ASSETS	$	19,235,832	$	18,688,205

LIABILITIES:
Reserve for losses and loss adjustment expenses	$	10,148,412	$	10,167,018
Unearned premium reserve		2,003,530		1,826,868
Funds held under reinsurance treaties		39,275		41,600
Other net payable to reinsurers		320,100		316,826
Senior notes due 6/1/2044		397,014		396,954
Long term notes due 5/1/2067		236,709		236,659
Note payable - affiliated		-		300,000
Accrued interest on debt and borrowings		3,063		3,093
Unsettled securities payable		63,050		50,912
Other liabilities		280,933		303,610
Total liabilities		13,492,086		13,643,540

Commitments and Contingencies (Note 6)

STOCKHOLDER'S EQUITY:
Common stock, par value: $0.01; 3,000 shares authorized;
1,000 shares issued and outstanding (2019 and 2018)		-		-
Additional paid-in capital		1,100,489		1,100,315
Accumulated other comprehensive income (loss), net of deferred income tax expense
(benefit) of $10,403 at 2019 and ($33,506) at 2018		39,523		(126,254	)
Retained earnings		4,603,734		4,070,604
Total stockholder's equity		5,743,746		5,044,665
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$	19,235,832	$	18,688,205

The accompanying notes are an integral part of the consolidated financial statements.

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Dollars in thousands)	2019			2018			2019			2018
	(unaudited)						(unaudited)
REVENUES:
Premiums earned	$	1,375,623		$	1,179,836		$	2,646,077		$	2,295,846
Net investment income		90,709			72,070			175,243			141,979
Net realized capital gains (losses):
Other-than-temporary impairments on fixed maturity securities		(4,929	)		(872	)		(7,219	)		(907	)
Other-than-temporary impairments on fixed maturity securities
transferred to other comprehensive income (loss)		-			-			-			-
Other net realized capital gains (losses)		147,492			(41,399	)		284,838			(101,565	)
Total net realized capital gains (losses)		142,563			(42,271	)		277,619			(102,472	)
Other income (expense)		(3,812	)		77,682			(5,026	)		2,805
Total revenues		1,605,083			1,287,317			3,093,913			2,338,158

CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses		843,222			1,228,760			1,639,318			1,942,015
Commission, brokerage, taxes and fees		316,775			288,002			604,993			544,459
Other underwriting expenses		83,351			74,226			161,733			151,577
Corporate expenses		2,519			1,513			4,170			5,109
Interest, fee and bond issue cost amortization expense		9,684			7,623			19,512			14,936
Total claims and expenses		1,255,551			1,600,124			2,429,726			2,658,096

INCOME (LOSS) BEFORE TAXES		349,532			(312,807	)		664,187			(319,938	)
Income tax expense (benefit)		67,628			(47,399	)		131,057			(42,358	)

NET INCOME (LOSS)	$	281,904		$	(265,408	)	$	533,130		$	(277,580	)

Other comprehensive income (loss), net of tax:
Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period		68,095			(18,165	)		156,544			(64,987	)
Less: reclassification adjustment for realized losses (gains) included in net income (loss)		5,858			154			4,842			(4,681	)
Total URA(D) on securities arising during the period		73,953			(18,011	)		161,386			(69,668	)

Foreign currency translation adjustments		(7,475	)		(20,812	)		2,089			(22,154	)

Reclassification adjustment for amortization of net (gain) loss included in net income (loss)		1,151			1,815			2,302			3,630
Total benefit plan net gain (loss) for the period		1,151			1,815			2,302			3,630
Total other comprehensive income (loss), net of tax		67,629			(37,008	)		165,777			(88,192	)

COMPREHENSIVE INCOME (LOSS)	$	349,533		$	(302,416	)	$	698,907		$	(365,772	)

The accompanying notes are an integral part of the consolidated financial statements.

	At March 31, 2020
	Amortized		Allowances for		Unrealized		Unrealized		Market
(Dollars in thousands)	Cost		Credit Losses		Appreciation		Depreciation		Value
Fixed maturity securities
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	771,122	$	-	$	35,125	$	(835)	$	805,412
Obligations of U.S. states and political subdivisions		507,155		-		21,733		(4,994)		523,894
Corporate securities		2,903,505		(11,468)		48,755		(128,058)		2,812,734
Asset-backed securities		875,091		-		1,701		(76,674)		800,118
Mortgage-backed securities
Commercial		313,624		-		16,479		(775)		329,328
Agency residential		638,008		-		28,502		(782)		665,728
Non-agency residential		1,090		-		-		(13)		1,077
Foreign government securities		654,644		(70)		28,238		(11,960)		670,852
Foreign corporate securities		875,385		(561)		32,524		(19,676)		887,672
Total fixed maturity securities	$	7,539,624	$	(12,099)	$	213,057	$	(243,767)	$	7,496,815

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

	At June 30, 2019
	Amortized		Unrealized		Unrealized			Market		OTTI in AOCI
(Dollars in thousands)	Cost		Appreciation		Depreciation			Value		(a)
Fixed maturity securities
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	892,226	$	11,066	$	(2,043	)	$	901,249	$	-
Obligations of U.S. states and political subdivisions		501,019		27,035		(348	)		527,706		-
Corporate securities		2,518,720		59,026		(23,056	)		2,554,690		135
Asset-backed securities		516,941		1,201		(935	)		517,207		-
Mortgage-backed securities
Commercial		271,298		15,385		(72	)		286,611		-
Agency residential		602,695		14,283		(387	)		616,591		-
Non-agency residential		2,701		3		-			2,704		-
Foreign government securities		520,922		21,323		(6,517	)		535,728		-
Foreign corporate securities		1,012,083		32,315		(14,913	)		1,029,485		316
Total fixed maturity securities	$	6,838,605	$	181,637	$	(48,271	)	$	6,971,971	$	451

	At December 31, 2018
	Amortized		Unrealized		Unrealized			Market		OTTI in AOCI
(Dollars in thousands)	Cost		Appreciation		Depreciation			Value		(a)
Fixed maturity securities
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	2,250,312	$	3,573	$	(11,088	)	$	2,242,797	$	-
Obligations of U.S. states and political subdivisions		489,013		12,915		(2,839	)		499,089		440
Corporate securities		2,273,581		12,487		(69,915	)		2,216,153		430
Asset-backed securities		223,192		102		(2,039	)		221,255		-
Mortgage-backed securities
Commercial		135,380		1,947		(723	)		136,604		-
Agency residential		149,306		1,177		(1,709	)		148,774		-
Non-agency residential		3,115		3		(4	)		3,114		-
Foreign government securities		576,540		14,399		(11,353	)		579,586		-
Foreign corporate securities		932,310		13,325		(30,932	)		914,703		281
Total fixed maturity securities	$	7,032,749	$	59,928	$	(130,602	)	$	6,962,075	$	1,151

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

The amount of total gains or losses for the period included
in earnings (or changes in net assets) attributable to the
change in unrealized gains or losses relating to assets
still held at the reporting date	$	-		$	-		$	-		$	-	$	-		$	-

(Some amounts may not reconcile due to rounding.)

	Total Fixed Maturities, Market Value
	Three Months Ended June 30, 2018							Six Months Ended June 30, 2018
	Corporate		Foreign					Corporate		Foreign
(Dollars in thousands)	Securities		Corporate			Total		Securities		Corporate			Total
Beginning balance	$	168,590	$	11,368		$	179,958	$	158,221	$	6,952		$	165,173
Total gains or (losses) (realized/unrealized)
Included in earnings		623		(504	)		119		1,345		(410	)		935
Included in other comprehensive income (loss)		190		-			190		425		-			425
Purchases, issuances and settlements		159,846		1			159,847		169,258		4,323			173,581
Transfers in and/or (out) of Level 3		-		1,750			1,750		-		1,750			1,750
Ending balance	$	329,249	$	12,615		$	341,864	$	329,249	$	12,615		$	341,864

The amount of total gains or losses for the period included
in earnings (or changes in net assets) attributable to the
change in unrealized gains or losses relating to assets
still held at the reporting date	$	-	$	-		$	-	$	-	$	-		$	-

(Some amounts may not reconcile due to rounding.)

	At June 30,		At December 31,
(Dollars in thousands)	2019		2018
The Prudential	$	141,386	$	142,754
Unaffiliated life insurance company		33,720		34,717

	Three Months Ended June 30,				Six Months Ended June 30,
	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in thousands)	2019		2018		2019		2018
Interest expense incurred	$	3,406	$	2,702	$	6,011	$	5,093

(Dollars in thousands)
Remainder of 2019	$	8,464
2020		16,883
2021		8,160
2022		7,864
2023		7,757
2024		7,611
Thereafter		12,480
Undiscounted lease payments		69,219
Less: present value adjustment		9,884
Total operating lease liability	$	59,335

	Three Months Ended					Six Months Ended
U.S. Reinsurance	June 30,					June 30,
(Dollars in thousands)	2019		2018			2019		2018
Gross written premiums	$	641,763	$	652,110		$	1,405,903	$	1,296,332
Net written premiums		487,694		429,931			1,105,835		853,762

Premiums earned	$	605,136	$	467,509		$	1,180,040	$	908,894
Incurred losses and LAE		367,473		708,524			684,111		1,009,728
Commission and brokerage		172,589		148,711			339,692		276,031
Other underwriting expenses		15,728		15,472			31,319		32,358
Underwriting gain (loss)	$	49,346	$	(405,198	)	$	124,918	$	(409,223	)

	Three Months Ended					Six Months Ended
International	June 30,					June 30,
(Dollars in thousands)	2019		2018			2019		2018
Gross written premiums	$	372,671	$	398,714		$	761,642	$	765,738
Net written premiums		350,219		337,357			708,077		672,232

Premiums earned	$	353,086	$	343,133		$	675,460	$	672,072
Incurred losses and LAE		213,808		259,487			450,884		435,846
Commission and brokerage		85,974		84,379			155,836		162,773
Other underwriting expenses		9,632		9,869			18,097		19,955
Underwriting gain (loss)	$	43,672	$	(10,602	)	$	50,643	$	53,498

	Three Months Ended June 30,
	Current			Ratio %/				Prior			Ratio %/				Total			Ratio %/
(Dollars in millions)	Year			Pt Change				Years			Pt Change				Incurred			Pt Change
2019
Attritional	$	826.5			60.1	%		$	(13.8	)		-1.0	%		$	812.7			59.1	%
Catastrophes		(0.1	)		0.0	%			30.6			2.2	%			30.5			2.2	%
Total	$	826.4			60.1	%		$	16.8			1.2	%		$	843.2			61.3	%

2018
Attritional	$	673.5			57.0	%		$	(3.5	)		-0.3	%		$	670.0			56.7	%
Catastrophes		64.6			5.5	%			494.2			41.9	%			558.8			47.4	%
Total	$	738.1			62.5	%		$	490.7			41.6	%		$	1,228.8			104.1	%

Variance 2019/2018
Attritional	$	153.0			3.1		pts	$	(10.3	)		(0.7	)	pts	$	142.7			2.4		pts
Catastrophes		(64.7	)		(5.5	)	pts		(463.6	)		(39.7	)	pts		(528.3	)		(45.2	)	pts
Total	$	88.3			(2.4	)	pts	$	(473.9	)		(40.4	)	pts	$	(385.6	)		(42.8	)	pts

	Six Months Ended June 30,
	Current			Ratio %/				Prior			Ratio %/				Total			Ratio %/
(Dollars in millions)	Year			Pt Change				Years			Pt Change				Incurred			Pt Change
2019
Attritional	$	1,590.4			60.1	%		$	(13.8	)		-0.5	%		$	1,576.5			59.6	%
Catastrophes		24.9			0.9	%			37.9			1.4	%			62.8			2.4	%
Total	$	1,615.3			61.0	%		$	24.0			0.9	%		$	1,639.3			62.0	%

2018
Attritional	$	1,386.4			60.4	%		$	(3.2	)		-0.1	%		$	1,383.2			60.3	%
Catastrophes		64.6			2.8	%			494.2			21.5	%			558.8			24.3	%
Total	$	1,451.0			63.2	%		$	491.0			21.4	%		$	1,942.0			84.6	%

Variance 2019/2018
Attritional	$	204.0			(0.3	)	pts	$	(10.6	)		(0.4	)	pts	$	193.3			(0.7	)	pts
Catastrophes		(39.7	)		(1.9	)	pts		(456.3	)		(20.1	)	pts		(496.0	)		(21.9	)	pts
Total	$	164.3			(2.2	)	pts	$	(467.0	)		(20.5	)	pts	$	(302.7	)		(22.6	)	pts

(Some amounts may not reconcile due to rounding.)