Everest Re 8K Results of Operations and Financial Condition | EG 9 Feb 22

EWS

ELEASE

EVEREST RE GROUP,

LTD.

Seon Place, 141 Front Street, 4

Floor, Hamilton HM 19, Bermuda

Contacts

Media: Dawn Lauer

Investors: Jon Levenson

Chief Communications Officer

Head of Investor Relations

Everest Global Services, Inc.

908.300.7670

908.604.3169

Everest Re Group Reports Fourth Quarter and Full Year

2021 Results

25% Growth in Gross Written Premium

and a 91.9% Combined Ratio for the Quarter

$431 Million of Net Income for the Quarter and a 14.7% Total

Shareholder Return for the Year

HAMILTON,

Bermuda --

(BUSINESS WIRE)

– February

9, 2022

– Everest Re Group, Ltd. (“Everest” or

the “Group”)

today reported its fourth quarter and full year 2021 results.

Fourth Quarter 2021 Highlights

●

Year

over

year

gross

written

premium

(“GWP”)

growth

25%

for

the

Group,

26%

for

Reinsurance and 21% for Insurance

●

Combined ratio of 91.9% for the Group, 91.5% for Reinsurance and 92.8% for Insurance

●

Attritional combined ratios of 87.4% for the Group,

86.4% for the Reinsurance segment and 90.4%

for Insurance

●

Pre-tax

underwriting

income

$228

million

including

pre-tax

catastrophe

losses

net

reinsurance and reinstatement premiums of $125 million

●

Pre-tax

net

investment

income

$205

million,

well

balanced

between

fixed

income

and

limited

partnership returns

●

$1.0 billion in 31-year, 3.125% coupon senior notes issued on October 4,

2021

Full Year

2021 Highlights

●

Net income of $1.380 billion representing a total shareholder return of 14.7%

●

Pre-tax net

investment income

of $1.165

billion, well

balanced between

fixed income

and limited

partnership returns

●

Pre-tax

underwriting

income

$224

million

inclusive

pre-tax

catastrophe

losses

net

reinsurance and reinstatement premiums of $1.065 billion

●

$13.0 billion in total 2021 GWP.

$9 billion reinsurance and $4 billion insurance

●

Year

over

year

gross

written

premium

(“GWP”)

growth

25%

for

the

Group,

25%

for

Reinsurance, and 24% for Insurance

●

Attritional combined ratios of 87.6% for the Group,

86.3% for the Reinsurance segment and 91.2%

for Insurance.

●

Operating cash flow of $3.8 billion

●

Common

repurchases

$25

million

during

the

quarter

and

$225

million

for

the

full

year

2021

Everest Re Group President & CEO Juan C. Andrade commented on the Company’s

results:

“2021 was a pivotal year of continued profitable growth and momentum for Everest. We

finished the year

with a strong quarter and achieved record growth in both our underwriting businesses, drove expanding

margins, solid underwriting profitability in an elevated natural catastrophe year,

and generated exceptional

investment income. These results led to $1.4 billion in net income for the year,

and a milestone 14.7% total

shareholder return. 2021 demonstrated the strong earnings power of our diversified franchises to create

value for our shareholders.

With a more profitable book of business coming out of a well-executed

January 1 reinsurance renewal season, an expanding global value proposition, a strong balance sheet, and

exceptional talent, we enter 2022 well-positioned to deliver on our long-term strategic objectives.”

Summary of Fourth Quarter 2021 Net Income and Other Items

●

Net income of $431

million, equal to $10.94

per diluted share vs.

net income of $64

million, equal

to $1.59 per diluted share in the fourth quarter 2020

●

Net operating income $359 million, equal to $9.12 per diluted

share vs. net operating income (loss)

of $(44) million, equal to $(1.12) per share in the fourth quarter 2020

●

Underwriting

gain of

$228 million

including $125

million of

catastrophe

losses net

of recoveries

and

reinstatement

premiums.

Catastrophe

events

comprised

Canadian

drought

losses

$80

million and

quad-state tornado losses of $45 million.

●

GAAP combined

ratio of

91.9% which

includes 4.5

points

of catastrophe

losses vs.

2.9 points

catastrophe losses in the same period during 2020

●

No change to Covid-19 Pandemic (“Pandemic”) ultimate loss provision of $511 million

●

Operating cashflow for the quarter of $1.04 billion vs $683 million in the same period during 2020.

The following table summarizes the Company’s net income and related financial

metrics.

Net income and operating income

Year

to Date

Year

to Date

All values in USD millions except for per share

2021

2020

Everest Re Group

Net income

430.7

1,379.1

63.6

514.1

Net operating income (loss)

359.2

1,153.9

(44.2)

300.1

Net income per diluted common share

10.94

34.62

1.59

12.78

Net operating income per diluted common share

9.12

28.97

(1.12)

7.46

Net income annualized return on average equity

17.7%

14.6%

2.8%

5.8%

Net operating income annualized return on average equity

14.8%

12.2%

-2.0%

3.4%

Period end equity and book value

Q4 2021

Year

to Date

Shareholders' equity

10,139.2

Book value per share

258.21

Change in BVPS adjusted for dividends

8.7%

Total Shareholder Return ("TSR") - Annualized

14.7%

Notes

1/ Refer to the reconciliation of net income to net operating income found on page 8 of this press release

The following information summarizes the Company’s underwriting results, on a consolidated basis and by

segment – Reinsurance and Insurance, with selected commentary on results by segment.

Underwriting information - Everest Re Group

Year to Date

Year on Year

Change

All values in USD millions except for percentages

2021

2020

Year to Date

Gross written premium

3,430.6

13,049.8

2,750.5

10,482.4

24.7%

24.5%

Net written premium

3,056.4

11,445.5

2,449.3

9,117.0

24.8%

25.5%

Loss ratio

64.9%

71.0%

82.5%

75.5%

(17.6) pts

(4.5) pts

Commission and brokerage ratio

21.3%

21.2%

21.4%

21.6%

(0.1) pts

(0.4) pts

Other underwriting expenses

5.7%

5.6%

5.2%

5.8%

0.5 pts

(0.2) pts

Combined ratio

91.9%

97.8%

109.1%

102.9%

(17.2) pts

(5.1) pts

Attritional combined ratio

87.4%

87.6%

86.3%

87.5%

1.1 pts

0.1 pts

Pre-tax net catastrophe losses

125.0

1,065.0

70.0

415.0

Pre-tax net covid losses

76.1

511.1

Pre-tax net prior year reserve development

(3.0)

(9.1)

400.0

401.4

Notes

1/ Attritional ratios exclude prior year reserve development, Covid-19 pandemic impacts, catastrophe losses, and reinstatement premiums

2/Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums

Reinsurance Segment – Quarterly Highlights

●

Reinsurance

achieved

excellent

growth

the

quarter,

26%

year

over

year

$2.4

billion.

The

growth

was

driven

continued

partnership

with

our

core

clients

and

Everest’s

position

preferred

reinsurer,

accelerated

strong

underlying

rate

movement.

Our

international

operations,

notably Europe, lead the growth

this quarter as we saw

increased demand for casualty and

multi-line

quota share treaties in those territories.

●

The attritional combined ratio for the quarter of 86.4% reflects the continued strong performance of

our portfolio, the successful execution of our strategy to participate in growth and margin

improvement in the casualty market, and our continued expense discipline

●

Canada suffered a widespread drought causing one of the largest P&C losses in Canadian history,

nearly $6B USD, resulting in an $80 million net catastrophe impact to our reinsurance segment

results.

Everest is a leading reinsurer in Canada, and we have profitably underwritten the Canadian

crop market for years. We view

this as an attractive long-term business.

Underwriting information - Reinsurance segment

Year to Date

Year on Year

Change

All values in USD millions except for percentages

2021

2020

Year to Date

Gross written premium

2,371.7

9,067.3

1,878.6

7,281.7

26.2%

24.5%

Net written premium

2,269.8

8,535.6

1,793.5

6,767.6

26.6%

26.1%

Loss ratio

64.8%

71.6%

86.9%

76.3%

(22.1) pts

(4.7) pts

Commission and brokerage ratio

24.1%

23.9%

23.3%

24.0%

0.8 pts

(0.1) pts

Other underwriting expenses

2.6%

2.2%

2.7%

0.4 pts

(0.1) pts

Combined ratio

91.5%

98.1%

112.4%

103.0%

(20.9) pts

(4.9) pts

Attritional combined ratio

86.4%

86.3%

83.9%

85.2%

2.5 pts

1.1 pts

Pre-tax net catastrophe losses

110.0

912.5

60.0

347.0

Pre-tax net covid losses

56.1

407.1

Pre-tax net prior year reserve development

(3.0)

(7.9)

400.0

396.9

Notes

1/ Attritional ratios exclude prior year reserve development, Covid-19 pandemic impacts, catastrophe losses, and reinstatement premiums

2/Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums

Insurance Segment – Quarterly Highlights

●

Everest Insurance delivered strong growth during the fourth quarter of 2021, with the third

consecutive quarter of gross written premium above $1.0 billion. This growth was driven primarily

by strong new business generation, notably in casualty and professional liability lines. Exposure

growth from the economic recovery and continued double digit rate increases also contributed

meaningfully to growth in the quarter.

●

Underwriting margins improved year over year with a combined ratio of 92.8% and an attritional

combined ratio of 90.4% (the lowest achieved to date). The loss ratio, commission ratio and expense

ratio all improved year over year, reflecting disciplined execution and intentional portfolio

management

●

Insurance

segment

catastrophe

losses

totaled

$15

million

net

recoveries

and

reinstatement

premiums for the quarter, all from the quad-state tornados.

Underwriting information - Insurance segment

Year to Date

Year on Year

Cgange

All values in USD millions except for percentages

2021

2020

Year to Date

Gross written premium

1,058.9

3,982.5

871.9

3,200.6

21.4%

24.4%

Net written premium

786.6

2,909.9

655.8

2,349.4

19.9%

23.9%

Loss ratio

65.1%

69.3%

68.9%

73.0%

(3.8) pts

(3.7) pts

Commission and brokerage ratio

13.4%

15.6%

14.5%

(2.2) pts

(1.1) pts

Other underwriting expenses

14.4%

14.5%

15.1%

(0.1) pts

(0.6) pts

Combined ratio

92.8%

97.1%

99.0%

102.6%

(6.1) pts

(5.4) pts

Attritional combined ratio

90.4%

91.2%

93.8%

94.2%

(3.4) pts

(3.0) pts

Pre-tax net catastrophe losses

15.0

152.5

10.0

68.0

Pre-tax net covid losses

20.0

104.0

Pre-tax net prior year reserve development

(1.2)

4.6

Notes

1/ Attritional ratios exclude prior year reserve development, Covid-19 pandemic impacts, catastrophe losses, and reinstatement premiums

2/Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums

Investments and Shareholders’ Equity

●

Total

invested assets and cash of $29.7 billion

at December 31, 2021 reflecting 16.5% growth versus

the year end 2020 value of $25.5 billion

●

Shareholders’ equity of $10.1 billion at December 31, 2021 vs. $9.7 billion at year end 2020

●

Book value per diluted share of $258.21 at December 31, 2021 vs. $243.25 at year end 2020

●

Book

value

per

diluted

excluding

unrealized

gains

(losses)

fixed

income

investments

$252.12 at December 31, 2021 vs. $225.15 at year end 2020

●

Common

dividends declared

and paid

the quarter

of $1.55

per share

equal to

$61

million,

and $6.20 for the year equal to $247 million

●

Common

repurchases

$25

million

during

the

quarter,

representing

96,702

average

price

$259.28

per

share.

For

the

full

year

2021,

common

repurchases

$225

million representing 887,622 shares at an average price of $253.64.

Equity and Book Value per Share

Year

to Date

Year

to Date

All values in USD millions except for per share amounts

2021

2020

Beginning shareholders' equity

9,978.6

9,726.2

9,591.3

9,132.9

Net income

430.7

1,379.1

63.6

514.2

Change-

unrealized gains (losses) - Fixed inc. investments

(176.8)

(484.8)

71.2

419.7

Dividends to shareholders

(61.0)

(246.7)

(61.9)

(249.1)

Purchase of treasury shares

(25.1)

(225.1)

(200.0)

Other

(7.2)

(9.5)

62.0

108.5

Ending shareholders' equity

10,139.2

9,726.2

Common shares outstanding

39.27

39.98

Book value per common share outstanding

258.21

243.25

Less: Unrealized on fixed inc. investments ("URAD")

6.09

18.10

Book value excl. URAD per common share outstanding

252.12

225.15

Common share dividends paid - last 12 months

6.20

This

news

release

contains

forward-looking

statements

within

the

meaning

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

U.S. Federal securities laws.

These statements involve risks

and uncertainties that

could cause

actual results

to differ

materially from

those contained

in forward-looking

statements made

behalf of the Company. These risks and uncertainties include the impact of general economic conditions and

conditions

affecting

the

insurance

and

reinsurance

industry,

the

adequacy

our

reserves,

our

ability

assess underwriting

risk, trends

in rates

for property

and casualty

insurance and

reinsurance,

competition,

investment

market

and

investment

income

fluctuations,

trends

insured

and

paid

losses,

catastrophes,

pandemic,

regulatory

and

legal

uncertainties

and

other

factors

described

our

latest

Annual

Report

Form

10-K.

The

Company

undertakes

obligation

publicly

update

revise

any

forward-looking

statements, whether as a result of new information, future events or otherwise.

About Everest Re Group, Ltd.

Everest Re Group, Ltd.

(“Everest”) is a leading

global provider of reinsurance

and insurance, operating for

years

through

subsidiaries

the

U.S.,

Europe,

Singapore,

Canada,

Bermuda,

and

other

territories.

Everest offers

property,

casualty,

and specialty

products through

its various

operating affiliates

located in

key markets around the world.

Everest common stock (NYSE:RE) is a component of the S&P 500 index.

Additional

information

about

Everest,

our

people,

and

our

products

can

found

our

website

www.everestre.com

. All issuing companies may not do business in all jurisdictions.

A conference call discussing

the fourth quarter results will be held at 8:00 a.m. Eastern Time on February 10,

2022.

The call

will be

available

on the

Internet

through

the Company’s

web site

at everestre.com/investors.

Recipients are encouraged

to visit the Company’s

web site to view

supplemental

financial information

on the

Company’s

results.

The

supplemental

information

located

www.everestre.com

the

“Investors/Financials/Quarterly

Results” section of the

website.

The supplemental financial information

may

also be

obtained

by contacting

the Company

directly.

_______________________________________________

The Company

generally uses

after-tax operating

income (loss),

a non-GAAP

financial measure,

to evaluate

its

performance.

After-tax

operating

income

(loss)

consists

net

income

(loss)

excluding

after-tax

net

realized

capital

gains

(losses)

and

after-tax

net

foreign

exchange

income

(expense)

the

following

reconciliation displays:

Three Months Ended December 31,

Twelve Months Ended December 31,

(Dollars in thousands, except per share amounts)

2021

2020

2021

2020

(unaudited)

Per Diluted

Amount

Net income (loss)

$430,707

$10.94

$63,601

$1.59

$1,379,083

$34.62

$514,151

$12.78

After-tax net realized capital gains (losses)

$90,306

$2.29

$149,950

$3.74

$201,503

$5.06

$217,017

$5.39

After-tax net foreign exchange income (expense)

($18,819)

($0.48)

($42,165)

($1.05)

$23,707

$0.60

($2,932)

($0.07)

After-tax operating income (loss)

$359,220

$9.12

($44,184)

($1.12)

$1,153,873

$28.97

$300,066

$7.46

(Some amounts may not reconcile due to rounding.)

Although net

realized capital

gains (losses)

and net

foreign exchange

income (expense)

are an

integral part

of the

Company’s

insurance operations,

the determination

of net

realized capital

gains (losses)

and foreign

exchange

income (expense)

is independent

of the

insurance underwriting

process.

The Company

believes

that

the

level

net

realized

capital

gains

(losses)

and

net

foreign

exchange

income

(expense)

for

any

particular

period

not

indicative

the

performance

the

underlying

business

that

particular

period.

Providing only

a GAAP

presentation of

net income

(loss) makes

it more

difficult

for users

of the

financial

information to

evaluate the

Company’s

success or

failure in

its basic

business and

may lead

to incorrect

misleading assumptions and conclusions.

The Company understands that the equity analysts who follow the

Company focus

on after-tax

operating income

(loss) in

their analyses

for the

reasons discussed

above.

The

Company

provides after-tax

operating income (loss)

to investors so

that they have

what management believes

to be a

useful supplement to GAAP information concerning the Company’s performance.

--Financial

Details

Follow--

EVEREST RE GROUP,

LTD.

CONSOLIDATED

STATEMENTS

OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

Three Months Ended

Twelve Months Ended

December 31,

(Dollars in thousands, except per share amounts)

2021

2020

2021

2020

(unaudited)

REVENUES:

Premiums earned

$2,803,801

$2,396,483

$10,406,441

$8,681,513

Net investment income

204,625

222,349

1,164,892

642,465

Net realized capital gains (losses):

Credit allowances on fixed maturity securities

2,242

17,896

(27,992)

(1,745)

Other net realized capital gains (losses)

116,912

165,490

285,935

269,394

Total net realized capital gains (losses)

119,154

183,386

257,943

267,649

Other income (expense)

(7,203)

(40,819)

36,987

6,487

Total revenues

3,120,377

2,761,399

11,866,263

9,598,114

CLAIMS AND EXPENSES:

Incurred losses and loss adjustment expenses

$1,819,392

$1,976,771

$7,391,253

$6,550,837

Commission, brokerage, taxes and fees

597,671

513,080

2,208,766

1,873,250

Other underwriting expenses

158,422

125,372

582,647

511,237

Corporate expenses

21,464

11,934

67,827

41,118

Interest, fees and bond issue cost amortization expense

23,364

14,847

70,149

36,323

Total claims and expenses

2,620,313

2,642,004

10,320,642

9,012,765

INCOME (LOSS) BEFORE TAXES

500,064

119,395

1,545,621

585,349

Income tax expense (benefit)

69,357

55,794

166,538

71,198

NET INCOME (LOSS)

$430,707

$63,601

$1,379,083

$514,151

Other comprehensive income (loss), net of tax:

Unrealized appreciation (depreciation) ("URA(D)") on securities arising

during the period

(183,914)

87,375

(488,378)

423,210

Reclassification adjustment for realized losses (gains) included in net

income (loss)

7,080

(16,165)

3,616

(3,476)

Total URA(D) on securities arising during

the period

(176,834)

71,210

(484,762)

419,734

Foreign currency translation adjustments

(33,204)

55,937

(62,091)

86,327

Benefit plan actuarial net gain (loss) for the period

6,250

(5,615)

6,250

(5,615)

Reclassification adjustment for amortization of net (gain) loss included

in net income (loss)

11,579

1,768

17,228

6,300

Total benefit plan net gain (loss) for the period

17,829

(3,847)

23,478

685

Total other comprehensive income (loss), net of tax

(192,209)

123,300

(523,375)

506,746

COMPREHENSIVE INCOME (LOSS)

$238,498

$186,901

$855,708

$1,020,897

EARNINGS PER COMMON SHARE:

Basic

$10.95

$1.59

$34.66

$12.81

Diluted

10.94

1.59

34.62

12.78

EVEREST RE GROUP,

LTD.

CONSOLIDATED

BALANCE SHEETS

December 31,

(Dollars and share amounts in thousands, except par value per share)

2021

2020

(unaudited)

ASSETS:

Fixed maturities - available for sale, at market value

(amortized cost: 2021, $22,063,592; 2020, $19,225,067, credit allowances: 2021, ($29,738); 2020,

($1,745))

$22,308,272

$20,040,173

Equity securities, at fair value

1,825,908

1,472,236

Short-term investments (cost: 2021, $1,178,386; 2020, $1,135,088)

1,178,337

1,134,950

Other invested assets

2,919,965

2,012,581

Cash

1,440,861

801,651

Total investments and cash

29,673,343

25,461,591

Accrued investment income

149,105

141,304

Premiums receivable

3,293,598

2,680,562

Reinsurance recoverables

2,053,354

1,994,555

Funds held by reinsureds

868,601

716,655

Deferred acquisition costs

872,289

622,053

Prepaid reinsurance premiums

515,445

412,015

Income taxes

2,381

17,253

Other assets

757,167

665,515

TOTAL ASSETS

$38,185,283

$32,711,503

LIABILITIES:

Reserve for losses and loss adjustment expenses

19,009,486

16,322,143

Future policy benefit reserve

35,669

37,723

Unearned premium reserve

4,609,634

3,501,359

Funds held under reinsurance treaties

18,391

15,807

Other net payable to reinsurers

449,723

294,347

Losses in course of payment

260,684

127,971

Senior notes

2,345,800

1,376,718

Long term notes

223,774

223,674

Borrowings from FHLB

519,000

310,000

Accrued interest on debt and borrowings

17,348

10,460

Unsettled securities payable

16,698

206,693

Other liabilities

539,896

558,432

Total liabilities

28,046,103

22,985,327

SHAREHOLDERS' EQUITY:

Preferred shares, par value: $0.01; 50,000 shares authorized;

no shares issued and outstanding

Common shares, par value: $0.01; 200,000 shares authorized; (2021) 69,790

and (2020) 69,620 outstanding before treasury shares

698

696

Additional paid-in capital

2,274,431

2,245,301

Accumulated other comprehensive income (loss), net of deferred income tax expense

(benefit) of $26,781 at 2021 and $80,451 at 2020

11,523

534,899

Treasury shares, at cost; 30,524 shares (2021) and 29,636 shares (2020)

(3,847,308)

(3,622,172)

Retained earnings

11,699,836

10,567,452

Total shareholders' equity

10,139,180

9,726,176

TOTAL LIABILITIES AND SHAREHOLDERS'

EQUITY

$38,185,283

$32,711,503

EVEREST RE GROUP,

LTD.

CONSOLIDATED

STATEMENTS

OF CASH FLOWS

Twelve Months Ended

December 31,

(Dollars in thousands)

2021

2020

(unaudited)

CASH FLOWS FROM OPERATING

ACTIVITIES:

Net income (loss)

$1,379,083

$514,151

Adjustments to reconcile net income to net cash provided by operating activities:

Decrease (increase) in premiums receivable

(648,735)

(387,123)

Decrease (increase) in funds held by reinsureds, net

(151,028)

(219,321)

Decrease (increase) in reinsurance recoverables

(124,796)

(150,753)

Decrease (increase) in income taxes

68,148

239,883

Decrease (increase) in prepaid reinsurance premiums

(127,792)

55,334

Increase (decrease) in reserve for losses and loss adjustment expenses

2,805,064

2,631,016

Increase (decrease) in future policy benefit reserve

(2,054)

(4,869)

Increase (decrease) in unearned premiums

1,145,512

404,049

Increase (decrease) in other net payable to reinsurers

185,764

(24,163)

Increase (decrease) in losses in course of payment

133,700

74,759

Change in equity adjustments in limited partnerships

(612,569)

(103,772)

Distribution of limited partnership income

211,367

122,326

Change in other assets and liabilities, net

(289,562)

(99,171)

Non-cash compensation expense

43,406

39,209

Amortization of bond premium (accrual of bond discount)

75,777

49,673

Net realized capital (gains) losses

(257,943)

(267,649)

Net cash provided by (used in) operating activities

3,833,342

2,873,579

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from fixed maturities matured/called - available for sale, at market value

3,892,918

2,586,405

Proceeds from fixed maturities sold - available for sale, at market value

1,915,916

1,945,867

Proceeds from fixed maturities sold - available for sale, at fair value

4,907

Proceeds from equity securities sold, at fair value

990,376

376,347

Distributions from other invested assets

257,233

309,912

Cost of fixed maturities acquired - available for sale, at market value

(8,825,315)

(7,189,301)

Cost of equity securities acquired, at fair value

(1,097,886)

(637,082)

Cost of other invested assets acquired

(756,560)

(557,473)

Net change in short-term investments

(42,630)

(717,527)

Net change in unsettled securities transactions

(203,016)

194,574

Net cash provided by (used in) investing activities

(3,868,964)

(3,683,371)

CASH FLOWS FROM FINANCING ACTIVITIES:

Common shares issued during the period for share-based compensation, net of expense

(14,275)

(13,566)

Purchase of treasury shares

(225,136)

(200,020)

Dividends paid to shareholders

(246,699)

(249,056)

Proceeds from issuance of senior notes

968,357

979,417

Cost of debt repurchase

(10,647)

Net FHLB borrowings (repayments)

209,000

310,000

Cost of shares withheld on settlements of share-based compensation awards

(17,054)

(15,908)

Net cash provided by (used in) financing activities

674,193

800,220

EFFECT OF EXCHANGE RATE

CHANGES ON CASH

639

3,187

Net increase (decrease) in cash

639,210

(6,385)

Cash, beginning of period

801,651

808,036

Cash, end of period

$1,440,861

$801,651

SUPPLEMENTAL CASH FLOW INFORMATION:

Income taxes paid (recovered)

$98,030

$(169,748)

Interest paid

62,369

33,570

Everest Re (EG) 8-KResults of Operations and Financial Condition